Alerus Financial Q3 profit beats estimates on commercial lending growth
Overview
US commercial bank and wealth adviser Q3 adjusted EPS and net income beat analyst expectations
Company repurchased $8.2 mln of stock in Q3, reducing shares outstanding by 250,000
Commercial and business lending grew 36.5% yr/yr, driving revenue and noninterest income gains
Outlook
Alerus did not provide specific financial guidance for the current or future periods in its press release
Result Drivers
NONINTEREST INCOME GROWTH - Co said Q3 noninterest income rose 16.7% yr/yr, driven by gains in retirement and benefit services, wealth advisory, and service charges on deposit accounts
COMMERCIAL LENDING EXPANSION - Commercial and business lending grew 36.5% yr/yr, now making up 37.1% of loan portfolio, supporting revenue growth
CREDIT QUALITY IMPROVEMENT - Co reported lower nonperforming assets and net recoveries in Q3, citing problem loan resolution
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $0.71 | $0.67 (4 Analysts) |
Q3 EPS | $0.76 | ||
Q3 Net Income | Beat | $19.20 mln | $16.68 mln (4 Analysts) |
Q3 Net Interest Income | $46.70 mln | ||
Q3 CET1 Capital Ratio | 10.52% | ||
Q3 Net Interest Margin | 3.84% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Alerus Financial Corp is $34.00, about 5.5% above its October 27 closing price of $32.23
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)