Alerus(US:ALRS)2025-01-28 22:14Financial Performance - Alerus Financial Corporation reported a net income of $3.2 million for Q4 2024, a decrease of 38.5% from $5.2 million in Q3 2024, and a significant improvement from a net loss of $14.8 million in Q4 2023[2]. - Adjusted earnings per common share increased by 41.9% to $0.44 in Q4 2024 from $0.31 in Q3 2024[8]. - Net income for Q4 2024 was $3,222,000, down from $5,207,000 in Q3 2024 and a loss of $14,754,000 in Q4 2023, showing recovery from previous losses[44]. - Adjusted net income for the year ended December 31, 2024, was $30,769,000, compared to $29,235,000 for the year ended December 31, 2023, reflecting a growth of 5.3%[48]. - Adjusted earnings per common share (diluted) for the year ended December 31, 2024, was $1.44, compared to $1.45 for the year ended December 31, 2023[49]. Revenue and Income Sources - Net interest income surged to $38.3 million in Q4 2024, a 69.8% increase from $22.5 million in Q3 2024[12]. - Noninterest income for Q4 2024 was $33.9 million, representing 46.9% of total revenues, and increased by 19.4% from $28.4 million in Q3 2024[8]. - Noninterest income reached $33,874,000 in Q4 2024, up 19.4% from $28,363,000 in Q3 2024 and significantly higher than $791,000 in Q4 2023[44]. - Year-over-year, noninterest income increased by $33.1 million from Q4 2023, with mortgage banking revenue up $2.4 million, or 184.6%[18]. Loans and Deposits - Total loans reached $4.0 billion as of December 31, 2024, marking an increase of $1.0 billion, or 31.7%, from September 30, 2024[8]. - Total deposits also increased to $4.4 billion, up $1.1 billion, or 31.7%, from September 30, 2024[8]. - Total loans increased to $4.0 billion as of December 31, 2024, a $1.2 billion, or 44.7%, increase from December 31, 2023[22]. - Total deposits increased to $4.4 billion as of December 31, 2024, up $1.3 billion or 41.4% from December 31, 2023[25]. Efficiency and Expenses - The adjusted efficiency ratio improved to 69.0% in Q4 2024, down from 77.7% in Q3 2024[8]. - Noninterest expense for Q4 2024 was $56.0 million, a $13.6 million, or 32.0%, increase from Q3 2024, primarily due to the acquisition of HMNF[19]. - The efficiency ratio improved to 73.36% in Q4 2024 from 80.29% in Q3 2024, indicating better cost management[45]. - Adjusted noninterest expense for the year ended December 31, 2024, was $167,794,000, compared to $148,260,000 in 2023, indicating an increase of 13.2%[47]. Credit Quality and Allowance - The allowance for credit losses on loans increased to 1.50% of total loans as of December 31, 2024, up 21 basis points from 1.29% as of September 30, 2024[8]. - The provision for credit losses for Q4 2024 was $12.0 million, up from $1.7 million in Q3 2024 and $1.5 million in Q4 2023[30][31]. - Total nonperforming assets reached $62.9 million as of December 31, 2024, an increase of $54.1 million from December 31, 2023[27]. - Nonperforming loans to total loans ratio was 1.58% as of December 31, 2024, unchanged from the previous quarter[29]. Assets and Capital - Total assets as of December 31, 2024, were $5.3 billion, an increase of $1.4 billion, or 34.7%, from December 31, 2023[21]. - Total common stockholders' equity increased to $498,699,000 in Q4 2024 from $386,486,000 in Q3 2024, reflecting strong capital growth[45]. - Tangible book value per common share decreased to $14.49 as of December 31, 2024, from $15.46 as of December 31, 2023[32]. - Common equity tier 1 capital to risk-weighted assets decreased to 9.98% as of December 31, 2024, down from 11.82% as of December 31, 2023[33]. Strategic Developments - Alerus Financial Corporation completed the acquisition of HMN Financial, Inc., marking the largest acquisition in the company's history[3]. - The company emphasizes the importance of managing credit risk and maintaining an adequate level of allowance for credit losses[41]. - The company will host a conference call on January 29, 2024, to discuss its financial results[34].