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what it is
Alerus is a regional bank that also sells retirement, payroll, wealth, and mortgage services to the same customer.
how it gets paid
Last year Alerus Financial made $280M in revenue.
why it's growing
Revenue grew 26.2% last year. $1.95 EPS matters because it shows what earnings can look like when the model behaves.
what just happened
Alerus posted $1.95 EPS on $209 million of revenue in the latest quarter, far above the prior-year run rate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
39.4x trailing p/e — you're paying up for this one
3.6% dividend yield — cash in your pocket every quarter
$0.65 fy2025 eps est
xvary composite: 63/100 — average
What they do
Alerus is a regional bank that also sells retirement, payroll, wealth, and mortgage services to the same customer.
You can give Alerus your checking account, your payroll, your 401(k), and your mortgage in one place. That matters because it already holds $4.19 billion of deposits and $4.00 billion of loans across four business lines. Switching banks is annoying. Switching your bank, retirement plan, and payroll at once is worse.
How they make money
$280M
annual revenue · their business grew +26.2% last year
total revenue
$280M
+26.2%
The products that matter
retirement and benefit administration
Retirement & Benefit Services
$31.5M last quarter
Core noninterest income reached $31.5M last quarter, up 6.8%. That matters because fee income is less tied to the rate cycle than lending spreads.
fee income
lending and deposit gathering
Commercial & Consumer Banking
$173M annual net interest income
This is the core bank. It produced $173M of annual net interest income and grew 4.7%, but deposit costs and rate moves decide whether that growth holds.
62% of revenue
business cash management
Treasury Management
38% of total revenue is fee-based
Management is pointing to larger mid-market and government opportunities in 2026. The hard fact today is simpler: noninterest income already makes up 38% of revenue, so execution here matters.
2026 watch item
Key numbers
39.4x
trailing p/e
P/E → price-to-earnings → how much you pay for each dollar of profit. At 39.4x, you are paying up for a bank that earned $0.83 in 2024.
3.6%
dividend yield
Dividend yield → cash paid to shareholders each year as a share of the stock price → you get paid while waiting, but only if earnings stop wobbling.
$4.19B
total deposits
Deposits → customer cash sitting at the bank → this is the cheap funding base that decides whether banking gets more profitable.
$59M
long-term debt
Long-term debt → borrowed money due later → at 9% of capital, leverage is not the main problem here. Valuation is.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 55 / 100
- long-term debt $59M (9% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for ALRS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Alerus posted $1.95 EPS on $209 million of revenue in the latest quarter, far above the prior-year run rate.
The annual picture still looks uneven. Revenue was $280 million in the year, up 26.2%, but quarterly EPS history moved from $2.10 in 2022 to $0.58 in 2023 to $0.83 in 2024.
$209M
revenue
$1.95
eps
n/a
n/a
the number that mattered
$1.95 EPS matters because it shows what earnings can look like when the model behaves, but the stock is already priced as if that level sticks.
source: company earnings report, 2026
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What could go wrong
the #1 risk is missing the 3.50%–3.60% net interest margin target after the $360M securities repositioning.
high
net interest margin execution
The premium setup depends on management turning the repositioning into a 2026 net interest margin of 3.50%–3.60%. If margin stays below that range, the stock is left trading rich without the earnings support rich multiples usually demand.
puts the core 2026 earnings recovery story at risk
med
deposit and funding pressure
Deposit declines showed up in Q4 2025. For a bank, that matters because funding costs can eat the spread faster than loan yields recover. If deposits stay expensive or harder to retain, the margin target gets tougher.
pressures the largest 62% revenue engine first
med
revenue quality versus EPS optics
Q4 showed the tension clearly: EPS beat, revenue missed. That is fine for a quarter. It is a problem if it repeats, because valuation eventually follows revenue growth and margin, not accounting wins.
another soft top-line print would test a 39.4x multiple
low
fee income losing momentum
Noninterest income grew 6.8%, and management is talking up treasury opportunities in mid-market and government. If that growth cools, you lose one of the cleaner offsets to rate volatility.
would weaken the 38% of revenue that gives this bank its diversification angle
62% of revenue comes from net interest income, so this is still a margin story first. The fee-income mix helps. It does not overpower the spread business.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
Expected May 5, 2026. Consensus is $0.55 EPS and $71.44M in revenue. The key read is whether reported margin is moving toward 3.50%–3.60%.
metric
net interest margin follow-through
Management already gave the target range. The market now needs proof in reported numbers. That is the shortest path to making 39.4x earnings look less extreme.
risk
deposit trends
Quarterly deposit stability matters as much as rate policy here. If funding holds, the repositioning has a chance to work. If it does not, spread pressure returns fast.
trend
fee-income momentum
Noninterest income grew 6.8% last quarter. If that pace holds while spread income improves, you get a better-quality bank than the market usually finds in this size bracket.
Analyst rankings
earnings predictability
35 / 100
Low predictability means the quarterly numbers can move around more than you want. In human-speak: this is not the kind of bank you buy for smooth, boring consistency.
risk rank
2
Risk rank is a stability score. A 2 means safer than most stocks on the board, but it does not mean the valuation is safe.
source: institutional data
Institutional activity
institutional ownership data for ALRS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$26
current price
n/a
target midpoint · n/a from current
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