Alerus(ALRS)2025-04-28 20:30Financial 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].