Revenue growth remains mixed as the firm struggles with a stagnant 0.8% net interest margin despite a recovery in net interest income to $44.9 million in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Net Interest Income | 176.25M | 172.5M | 107.05M | 87.84M | 99.73M | 87.1M | 83.85M | 74.55M | 75.22M | 67.67M | 62.94M | 52.87M | 51.08M | 46.8M | 48.27M |
| NII Growth % | 197.77% | 61.15% | 21.87% | -11.92% | 14.5% | 3.88% | 12.47% | -0.89% | 11.16% | 7.52% | 19.05% | 3.51% | 9.15% | -3.04% | - |
| Net Interest Margin % | 3.33% | 3.3% | 2.03% | 2.25% | 2.64% | 2.57% | 2.78% | 3.16% | 3.45% | 3.17% | 3.07% | 3.03% | 3.43% | 3.39% | 3.65% |
| Interest Income | 278.43M | 279.64M | 221.58M | 164.88M | 115.58M | 92.66M | 96.1M | 93.3M | 87.7M | 75.64M | 69.94M | 56.33M | 54.39M | 50.51M | 52.85M |
| Interest Expense | 102.18M | 107.14M | 114.53M | 77.04M | 15.85M | 5.56M | 12.26M | 18.75M | 12.48M | 7.97M | 7M | 3.46M | 3.32M | 3.71M | 4.59M |
| Loan Loss Provision | -5.19M | 556K | 18.14M | 2.06M | 0 | -3.5M | 10.9M | 7.31M | 8.61M | 3.28M | 3.06M | 4.2M | -400K | 1.2M | 833K |
| Non-Interest Income | 51.97M | 48.22M | 116.71M | 78.38M | 109.01M | 143.14M | 143.66M | 111.34M | 100.6M | 100.81M | 102.65M | 83.86M | 71.42M | 73.72M | 79.11M |
| Non-Interest Income % | 15.73% | 14.71% | 34.5% | 32.22% | 48.54% | 60.7% | 59.92% | 54.41% | 53.42% | 57.13% | 59.48% | 59.82% | 56.77% | 59.34% | 59.95% |
| Total Revenue | 330.4M | 327.86M | 338.29M | 243.26M | 224.58M | 235.79M | 239.77M | 204.64M | 188.3M | 176.45M | 172.59M | 140.19M | 125.82M | 124.23M | 131.97M |
| Revenue Growth % | -13.28% | -3.08% | 39.06% | 8.32% | -4.75% | -1.66% | 17.16% | 8.68% | 6.72% | 2.23% | 23.11% | 11.42% | 1.28% | -5.86% | - |
| Non-Interest Expense | 198.13M | 197.57M | 182.45M | 148.31M | 156.55M | 164.66M | 158.09M | 139.68M | 134.17M | 132.69M | 141.35M | 108.74M | 93.13M | 87.37M | 100.83M |
| Efficiency Ratio | 59.97% | 60.26% | 53.93% | 60.97% | 69.71% | 69.83% | 65.94% | 68.26% | 71.26% | 75.2% | 81.9% | 77.57% | 74.02% | 70.32% | 76.41% |
| Operating Income | 35.28M | 22.59M | 23.16M | 15.85M | 52.18M | 69.08M | 58.52M | 38.9M | 33.04M | 32.52M | 21.18M | 23.79M | 29.77M | 31.95M | 25.71M |
| Operating Margin % | 10.68% | 6.89% | 6.85% | 6.52% | 23.23% | 29.3% | 24.41% | 19.01% | 17.55% | 18.43% | 12.27% | 16.97% | 23.66% | 25.72% | 19.49% |
| Operating Income Growth % | - | -2.45% | 46.08% | -69.62% | -24.46% | 18.04% | 50.45% | 17.73% | 1.61% | 53.54% | -10.99% | -20.08% | -6.84% | 24.27% | - |
| Pretax Income | 35.28M | 22.59M | 23.16M | 15.85M | 52.18M | 69.08M | 58.52M | 38.9M | 33.04M | 32.52M | 21.18M | 23.79M | 29.77M | 31.95M | 25.71M |
| Pretax Margin % | 10.68% | 6.89% | 6.85% | 6.52% | 23.23% | 29.3% | 24.41% | 19.01% | 17.55% | 18.43% | 12.27% | 16.97% | 23.66% | 25.72% | 19.49% |
| Income Tax | 8.19M | 5.15M | 5.38M | 4.16M | 12.18M | 16.4M | 13.84M | 9.36M | 7.17M | 17.48M | 7.14M | 6.68M | 9M | 11.68M | 9.46M |
| Effective Tax Rate % | 23.2% | 22.81% | 23.23% | 26.23% | 23.34% | 23.74% | 23.66% | 24.05% | 21.71% | 53.78% | 33.72% | 28.09% | 30.23% | 36.57% | 36.78% |
| Net Income | 27.1M | 17.44M | 17.78M | 11.7M | 40.01M | 52.68M | 44.67M | 29.54M | 25.87M | 15M | 14.04M | 17.11M | 20.77M | 20.27M | 16.26M |
| Net Margin % | 8.2% | 5.32% | 5.26% | 4.81% | 17.81% | 22.34% | 18.63% | 14.44% | 13.74% | 8.5% | 8.13% | 12.2% | 16.51% | 16.32% | 12.32% |
| Net Income Growth % | 9.86% | -1.92% | 52.02% | -70.76% | -24.06% | 17.92% | 51.24% | 14.2% | 72.43% | 6.88% | -17.96% | -17.63% | 2.47% | 24.69% | - |
| Net Income (Continuing) | 27.1M | 17.44M | 17.78M | 11.7M | 40.01M | 52.68M | 44.67M | 29.54M | 25.87M | 15M | 14.04M | 17.11M | 20.77M | 20.27M | 16.26M |
| EPS (Diluted) | 1.07 | 0.68 | 0.83 | 0.58 | 2.10 | 2.97 | 2.52 | 1.91 | 1.84 | 1.07 | 1.00 | 1.21 | 1.48 | 1.46 | 1.17 |
| EPS Growth % | -13.93% | -18.07% | 43.1% | -72.38% | -29.29% | 17.86% | 31.94% | 3.8% | 71.96% | 7% | -17.36% | -18.24% | 1.37% | 24.79% | - |
| EPS (Basic) | - | 0.69 | 0.84 | 0.59 | 2.12 | 3.02 | 2.57 | 1.96 | 1.88 | 1.10 | 1.04 | 1.26 | 1.48 | 1.52 | 1.17 |
| Diluted Shares Outstanding | 25.4M | 25.7M | 21.32M | 20.14M | 18.88M | 17.49M | 17.44M | 15.09M | 14.06M | 14.01M | 14M | 13.95M | 13.92M | 13.76M | 13.59M |
Earnings Volatility from Fees
As reported in recent financial filings, Alerus Financial Corporation demonstrated a notable recovery in net interest income, which climbed to $44.9 million in 2026Q1 from a low of $21.6 million in 2023Q4, suggesting a successful repricing of the loan portfolio despite persistent funding cost pressures.
The trajectory of net interest income indicates that the bank has successfully navigated the interest rate cycle by expanding its interest-earning asset base. Investors should monitor whether this growth is sustainable or if deposit betas will continue to compress the net interest margin in subsequent quarters.
Based on the provided quarterly data, the net interest margin has remained largely stagnant, hovering near 0.8% throughout early 2026, which highlights the difficulty of expanding spreads in the current competitive environment for both commercial loans and retail deposit funding sources.
The lack of meaningful margin expansion suggests that the bank's asset yields are being closely tracked by rising funding costs. This environment warrants further investigation into the bank's ability to shift its deposit mix toward lower-cost core accounts to improve profitability.
According to historical income statements, the efficiency ratio has exhibited significant volatility, spiking to 157.1% in 2025Q4 before normalizing to 51.5% in 2026Q1, reflecting the impact of non-recurring items and the high fixed-cost nature of the firm's specialized retirement and benefit services segment.
The fluctuation in the efficiency ratio suggests that the bank's operating leverage is highly sensitive to revenue lulls. Maintaining a consistent efficiency profile appears challenging given the specialized labor requirements inherent in the firm's fiduciary and retirement administration business model.
As indicated by the 2026Q1 data, non-interest income contributed $30.8 million to the top line, representing a critical component of the revenue mix that helps offset the inherent cyclicality of the bank's core interest-sensitive lending and mortgage origination activities.
The reliance on fee-based revenue from retirement and benefit services provides a unique diversification benefit compared to traditional regional peers. However, the sensitivity of these fees to market valuations suggests that the firm's earnings quality remains exposed to broader equity and bond market performance.
Quick answers to the most common questions about buying ALRS stock.
Alerus Financial Corporation (ALRS) is profitable, generating $17.4M in net income for the fiscal year ending 2025 with a net profit margin of 5.3%.
Alerus Financial Corporation (ALRS) reported an operating income of $22.6M, resulting in an operating profit margin of 6.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Alerus Financial Corporation (ALRS) generated $220.2M in gross profit for the year, representing a gross profit margin of 67.2%. This demonstrates the company's core pricing power and production efficiency.