Alerus Financial Corporation (NASDAQ: ALRS) Q2 2025 Earnings | 07/28/2025

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Alerus Financial Corporation reported a standout Q2 2025, with net income surging to $20.3 million, up notably from $13.3 million in the previous quarter and more than tripling from $6.2 million a year ago. Earnings per diluted share came in at $0.78, with adjusted EPS at $0.72, significantly exceeding analyst forecasts and reflecting a 28.6% sequential gain. This performance was anchored by a steadily improving net interest income, which rose 4.6% quarter-over-quarter to $43.0 million, driven by higher loan yields and favorable deposit repricing. Noninterest income also jumped 15% sequentially to $31.8 million, led by strong gains in mortgage banking and a $2.1 million benefit from the sale of a purchased hospitality loan. Key profitability measures strengthened, with return on average assets up to 1.53% and adjusted return on average tangible common equity rising to 21.0%. The bank’s net interest margin improved to 3.51%, up from 3.41% last quarter and well above last year’s figure. Management highlighted a proactive approach to balance sheet optimization, including a strategic sale of $62.5 million in non-owner occupied commercial real estate loans, which helped maintain robust credit quality and portfolio discipline. The company recorded minimal net charge-offs to average loans, excluding the hospitality loan sale, and reported no additional provision for credit losses this quarter. Alerus continued its long tradition of dividend growth, increasing its quarterly payout by 5% to $0.21 per share, marking the 39th consecutive year of dividend increases. Tangible book value per share advanced to $16.11, up 5.5% from the prior quarter’s end. With strong capital ratios, improved efficiency, and accelerated revenue growth across its banking, wealth, and retirement services, management expressed confidence in achieving sustained “top-tier” performance in the coming quarters, emphasizing ongoing investment in client relationships and integrated financial solutions. About Inside Ticker: For more expert analysis and real-time updates on Alerus Financial Corporation (NASDAQ: ALRS) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #AlerusFinancial #ALRS #Q22025 #Earnings #FinancialResults #NetIncome #EPS #RevenueGrowth #NetInterestMargin #Dividend #ShareholderReturns #Banking #WealthManagement #MortgageBanking #OperationalExcellence #CreditQuality #StockMarket #InsideTicker #Guidance #CapitalManagement #TangibleBookValue #Efficiency #2025Outlook