Alerus(US:ALRS)2026-01-28 21:30Financial Performance - Alerus Financial Corporation reported a net loss of $33.1 million for Q4 2025, compared to a net income of $16.9 million in Q3 2025[1]. - The company sold $360.1 million of available-for-sale securities, resulting in a one-time pre-tax net loss of $68.4 million[2]. - Adjusted return on average assets for 2025 was 1.35%, with an adjusted efficiency ratio of 64.45%[3]. - The company achieved tangible book value growth of 21.54% from the prior year, with a tangible book value per common share of $17.55[6]. - Earnings per common share for the year ended December 31, 2025, was $0.69, down from $0.84 in 2024, indicating a decrease of approximately 17.9%[42]. - Adjusted net income for Q4 2025 was $21,419 thousand, compared to $17,000 thousand in Q3 2025 and $11,245 thousand in Q4 2024, indicating a year-over-year increase of 90.7%[45]. - Adjusted earnings per common share for the year ended December 31, 2025, was $2.78, up from $1.45 in 2024, marking an increase of 91.0%[46]. Income and Expenses - Net interest income for Q4 2025 was $45.2 million, a 4.7% increase from Q3 2025[11]. - Noninterest (loss) income for Q4 2025 was $(36.9) million, a decrease of $66.4 million, or 225.5%, from Q3 2025, primarily due to a $68.4 million loss on the sale of investment securities[15]. - Noninterest expense for Q4 2025 was $51.9 million, a $1.3 million, or 2.7%, increase from Q3 2025, driven by occupancy and equipment expenses[18]. - Noninterest expense for the year ended December 31, 2025, was $201,227 thousand, up from $180,675 thousand in 2024, reflecting an increase of 11.4%[42]. Asset and Loan Growth - Assets under administration and management grew to a combined $49.8 billion, reflecting strong organic growth in retirement and wealth segments[5]. - Mortgage originations for the full year 2025 were $484.8 million, a 54.4% increase from the previous year[9]. - Total loans held for investment increased by $55.5 million, or 1.4%, to $4.0 billion as of December 31, 2025, driven by increases in consumer and commercial loans[21]. - Average total loans for the year ended December 31, 2025, were $4,047,034 thousand, compared to $3,099,015 thousand in 2024, reflecting a growth of 30.7%[46]. Asset Quality and Credit Losses - Total nonperforming assets increased by $3.6 million, or 5.7%, to $66.5 million as of December 31, 2025[26]. - The allowance for credit losses on loans was $61.9 million, or 1.53% of total loans, as of December 31, 2025, compared to $59.9 million, or 1.50%, as of December 31, 2024[26]. - The provision for credit losses was released by $0.3 million in the fourth quarter of 2025, contrasting with a provision of $12.0 million in the fourth quarter of 2024[28]. - Nonperforming loans totaled $66.1 million, an increase from $59.6 million as of September 30, 2025, and $51.5 million as of June 30, 2025[27]. Capital and Equity - Total stockholders' equity increased to $564.9 million as of December 31, 2025, up by $69.5 million from December 31, 2024, primarily due to a rise in accumulated other comprehensive income[30]. - Common equity tier 1 capital to risk-weighted assets improved to 10.28% as of December 31, 2025, up from 9.91% as of December 31, 2024[31]. - Tangible common equity increased to $445,929 thousand in December 2025 from $429,300 thousand in September 2025, representing a growth of 8.5%[43]. Operational Efficiency - The adjusted efficiency ratio improved to 63.55% in Q4 2025 from 65.22% in Q3 2025 and 68.97% in Q4 2024, indicating enhanced operational efficiency[45]. - The adjusted return on average tangible common equity for Q4 2025 was 21.05%, up from 18.55% in Q3 2025 and 14.89% in Q4 2024, showing significant improvement in profitability[45]. Future Outlook - The company will host a conference call on January 29, 2026, to discuss its financial results[32].