While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics ...

Alerus (ALRS) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earn ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 28th:Urban Outfitters (URBN) : This lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gifts products, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.Urban Outfitters’ shares gained 61.5% over the last three month compared with the S&P 500’s gain of 1.2%. Th ...

Financial Data and Key Metrics Changes - The meeting reported that over 21,765,000 common shares were represented, constituting approximately 85 percent of the outstanding shares entitled to vote [7] - The proposal to approve the compensation paid to the company's named executive officers in 2024 received majority approval from the shares present [20] - The appointment of RSM US LLP as the independent public accounting firm for the fiscal year ending 12/31/2025 was ratified by a majority vote [21] Business Line Data and Key Metrics Changes - No specific data on business lines or key metrics was provided during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company plans to increase the number of authorized shares of common stock, which was approved by a majority vote [21] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided during the meeting Other Important Information - The meeting included the election of nine members to the Board of Directors for a one-year term [10][12] - The meeting was conducted virtually, and stockholders were reminded to submit their votes and questions through the provided interface [3][4] Q&A Session Summary Question: Were there any questions from stockholders? - No questions were received from stockholders during the meeting [17][19]

Financial Data and Key Metrics Changes - The adjusted return on assets (ROA) improved to 1.1%, a 25 basis point increase from the previous quarter [4] - Net interest income increased by 7.5% over the prior quarter, reaching a record level of $41.2 million, while fee income decreased by 18.4% [13][15] - The net interest margin rose by 21 basis points to 3.41% [15] - Non-performing loans decreased during the quarter, contributing to a stable loan-to-deposit ratio of 91.1% [6][19] Business Line Data and Key Metrics Changes - The wealth management group generated revenues 13% higher than a year ago, indicating strong performance amid market volatility [8] - Organic loan growth was 2.3% over the prior quarter, with commercial loans now comprising over 70% of total loans [17] - Non-interest income from banking was $4.6 million for the first quarter, with a decline in mortgage revenues due to a seasonal downturn [21] Market Data and Key Metrics Changes - The company experienced a 2.4% organic growth in deposits from the prior quarter, despite pressure on non-interest bearing deposits [19] - Synergistic deposits in the retirement business grew by 8.8% over the prior quarter, indicating strong performance in that segment [24] Company Strategy and Development Direction - The company remains focused on its "One Aleris" strategy, which emphasizes a unified approach to grow its diversified business model [4] - The integration of Home Federal is on track, with cost savings and expense management being top priorities [10] - The company is engaging a consultant to optimize processes and improve efficiency as it integrates new talent [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success, citing strong leadership and a commitment to organic growth [10] - The economic landscape remains fluid, with expectations for mid-single-digit loan growth and low-single-digit deposit growth for 2025 [29] - Management anticipates potential pressure on fee income due to market conditions but remains optimistic about mortgage originations [31] Other Important Information - The adjusted efficiency ratio improved to 66.9%, reflecting ongoing cost management efforts [10] - The company is committed to maintaining robust reserves, which increased to 1.52% of total loans [7] Q&A Session Summary Question: Margin expectations and core margin trends - Management expects core margin to improve from the current level, driven by strong loan growth and favorable spreads [36][37] Question: Update on non-accrual construction loan - The project is progressing well, with a temporary certificate of occupancy expected soon, and good interest in the property [39][40] Question: Fee income timing for wealth and retirement - Approximately 40% of retirement assets are market sensitive, assessed on an average daily balance, while wealth fees are built at quarter-end [41] Question: Opportunities in specific geographies - The company is focusing on commercial C&I growth, particularly in Arizona, Minnesota, and North Dakota, while being cautious about investor CRE [43][44] Question: Capital deployment and M&A appetite - The company is selectively pursuing organic growth and potential acquisitions in the retirement space while maintaining a strong dividend history [47] Question: Credit quality and portfolio management - Credit quality is normalized, with no significant risk of loss, and proactive measures are in place to identify risks early [55] Question: Expense growth outlook - Core expenses are expected to remain stable around the current run rate, with a focus on managing costs effectively [46][58]

Alerus Financial (ALRS) Q1 2025 Earnings Call April 29, 2025 12:00 PM ET Company Participants Katie Lorenson - President, CEO & DirectorAl Villalon - EVP & CFOBrendan Nosal - Director - Equity ResearchKarin Taylor - EVP & COOAdam Kroll - Equity Research AssociateJim Collins - Executive Vice President and Chief Banking and Revenue OfficerDamon Delmonte - Managing DirectorDavid Long - Managing Director Conference Call Participants Jeffrey Rulis - MD & Senior Research Analyst Operator Good morning, afternoon a ...

INVESTOR PRESENTATION 1Q 2025 NASDAQ: ALRS DISCLAIMERS Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Alerus Financial Corporation. These statements are often, but not always, ...

Core Insights - Alerus reported a revenue of $69 million for Q1 2025, marking a 45.1% increase year-over-year, with EPS at $0.56 compared to $0.32 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $65.45 million by 5.42%, and the EPS surpassed the consensus estimate of $0.43 by 30.23% [1] Financial Performance Metrics - Net charge-offs to average loans stood at 0%, better than the 0.1% average estimate [4] - The efficiency ratio was reported at 68.8%, significantly lower than the average estimate of 75.6% [4] - The net interest margin was 3.4%, exceeding the average estimate of 3.1% [4] - Total interest-earning assets averaged $4.95 billion, slightly above the estimated $4.88 billion [4] - Tax-equivalent net interest income was $41.68 million, compared to the estimated $37.56 million [4] - Retirement and benefit services revenue reached $16.11 million, above the average estimate of $15.90 million [4] - Total noninterest income was $27.63 million, slightly below the average estimate of $28.10 million [4] - Wealth management revenue was $6.91 million, compared to the average estimate of $6.82 million [4] - Service charges on deposit accounts were $0.65 million, below the average estimate of $1.13 million [4] - Mortgage banking revenue was $1.53 million, significantly lower than the average estimate of $2.70 million [4] - Other income was reported at $2.44 million, exceeding the average estimate of $1.55 million [4] Stock Performance - Alerus shares returned -3.2% over the past month, compared to a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - Alerus (ALRS) reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing a year-over-year increase from $0.32 per share [1] Group 1: Earnings Performance - The earnings surprise for the recent quarter was 30.23%, with a previous quarter's surprise of 12.82% [1][2] - Over the last four quarters, Alerus has surpassed consensus EPS estimates two times [2] - The company posted revenues of $69 million for the quarter, surpassing the Zacks Consensus Estimate by 5.42%, compared to $47.54 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Alerus shares have declined approximately 7.9% since the beginning of the year, while the S&P 500 has decreased by 6.1% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.51 for the next quarter and $2.06 for the current fiscal year [4][7] Group 3: Industry Context - The Financial - Miscellaneous Services industry, to which Alerus belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Alerus's stock performance [5]

Financial Performance - Alerus Financial Corporation reported net income of $13.3 million for Q1 2025, or $0.52 per diluted common share, compared to a net loss of ($0.1) million in Q4 2024[2]. - Net interest income for Q1 2025 was $41.2 million, a $2.9 million, or 7.5%, increase from Q4 2024[7]. - Noninterest income for Q1 2025 was $27.6 million, a decrease of $6.2 million from Q4 2024, primarily due to lower other noninterest income[10]. - Noninterest expense decreased to $50.4 million in Q1 2025, a reduction of $10.1 million, or 16.7%, from Q4 2024[14]. - The efficiency ratio improved to 68.8% in Q1 2025, down from 69.0% in Q4 2024[5]. - Return on average tangible common equity for Q1 2025 was 16.50%, a substantial increase from 2.38% in Q4 2024[39]. - Earnings per common share for Q1 2025 was $0.52, compared to $0.32 in Q1 2024[38]. - Adjusted net income for Q1 2025 was $14,352,000, compared to $11,245,000 in Q4 2024, marking a 27.5% increase, and up from $6,671,000 in Q1 2024[40]. - Adjusted earnings per common share - diluted for Q1 2025 was $0.56, an increase from $0.45 in Q4 2024 and $0.33 in Q1 2024[40]. Loan and Deposit Growth - Total loans increased to $4.1 billion as of March 31, 2025, reflecting a growth of $92.9 million, or 2.3%, from December 31, 2024[5]. - Total deposits rose to $4.5 billion as of March 31, 2025, an increase of $106.9 million, or 2.4%, from December 31, 2024[5]. - Total loans amounted to $4.5 billion as of March 31, 2025, an increase of $106.9 million, or 2.4%, from December 31, 2024[20]. - Total deposits were $4.5 billion as of March 31, 2025, reflecting a growth of $106.9 million, or 2.4%, from December 31, 2024[20]. - Total loans for Q1 2025 amounted to $4,022,863,000, an increase from $3,814,934,000 in Q4 2024 and $2,768,514,000 in Q1 2024[41]. Asset Quality - The ratio of nonperforming loans to total loans decreased to 1.24% as of March 31, 2025, compared to 1.58% as of December 31, 2024[5]. - Total nonperforming assets decreased to $51.0 million as of March 31, 2025, down $11.9 million from December 31, 2024[22]. - The allowance for credit losses on loans was $61.9 million, or 1.52% of total loans, as of March 31, 2025, compared to $59.9 million, or 1.50%, as of December 31, 2024[22]. - The provision for credit losses was $0.9 million for the first quarter of 2025, significantly lower than $12.0 million for the fourth quarter of 2024[24]. Capital and Equity - Tangible book value per common share increased to $15.27 as of March 31, 2025, reflecting a 5.7% rise from $14.44 as of December 31, 2024[5]. - Common equity tier 1 capital to risk-weighted assets increased to 10.10% as of March 31, 2025, from 9.91% as of December 31, 2024[26]. - Total capital to risk weighted assets rose to 12.67% as of March 31, 2025, up from 12.49% on December 31, 2024[27]. - Tangible common equity to tangible assets ratio improved to 7.43% in Q1 2025 from 7.13% in Q4 2024[39]. Interest Income and Margin - Total interest income for Q1 2025 was $68,181,000, an increase of 39.1% compared to $49,038,000 in Q1 2024[38]. - Net interest income after provision for credit losses reached $40,294,000, significantly up from $22,219,000 in the same quarter last year[38]. - The net interest margin, tax-equivalent, for Q1 2025 was 3.41%, compared to 3.20% in Q4 2024 and 2.30% in Q1 2024[41]. Operational Highlights - The company operates 29 banking and commercial wealth offices across multiple states, including North Dakota, Minnesota, Iowa, Wisconsin, and Arizona[30]. - Alerus Financial Corporation will host a conference call on April 29, 2025, to discuss its financial results[28]. - The company emphasizes the importance of non-GAAP financial measures in evaluating capital adequacy and financial performance[31]. - Forward-looking statements indicate potential growth and performance expectations, subject to various risks and uncertainties[34].