
ALRS Stock Forecast & Price Target
ALRS Analyst Ratings
Bulls say
Alerus Financial Corp reported a 6.8% quarter-over-quarter increase in core noninterest income, reaching $31.5 million, surpassing projections and reflecting robust performance in service offerings. The company also demonstrated a significant improvement in regulatory capital ratios, with the Common Equity Tier 1 (CET1) rising to 10.8%, indicating a strong capital position that supports growth and resilience amid economic challenges. Furthermore, net interest income increased by 4.7% to $45.2 million, complemented by a notable rise in net interest margin to 3.69%, underlining strong profitability and operational efficiency.
Bears say
Alerus Financial Corp has experienced a significant decline in loans, with a 5.3% decrease quarter-over-quarter largely driven by a $103.5 million runoff in commercial real estate (CRE) construction loans. Additionally, the company's core fee income, which represents 40% of total revenue, has decreased by 1% quarter-over-quarter and remains below expectations, indicating challenges in revenue generation outside of interest income. The company also reported a 20% decline in deposits, predominantly due to high-cost certificate of deposit runoff, coupled with concerns over credit quality and a slowing growth environment posing risks to the overall financial performance.
This aggregate rating is based on analysts' research of Alerus Financial Corp and is not a guaranteed prediction by Public.com or investment advice.
ALRS Analyst Forecast & Price Prediction
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