Net interest income climbed to $46.7M in 2026Q3 from $22.5M in 2024Q3, yet the net interest margin remained narrow at about 0.9%, leaving limited cushion against funding cost pressure.
Alerus Financial Corporation (ALRS) annual income statement — 14-year revenue, gross profit & net income history
| 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 | 184.52M | 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 % | 46.31% | 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 % | 3.42% | 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 | 278.18M | 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 | 93.66M | 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 | -2.5M | 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 | 60.04M | 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 % | 24.55% | 21.85% | 52.16% | 47.15% | 52.22% | 62.17% | 63.15% | 59.9% | 57.22% | 59.83% | 61.99% | 61.33% | 58.3% | 61.17% | 62.11% |
| Total Net Revenue | 244.56M | 220.72M | 223.75M | 166.22M | 208.74M | 230.24M | 227.51M | 185.89M | 175.82M | 168.48M | 165.59M | 136.73M | 122.5M | 120.52M | 127.38M |
| Revenue Growth % | -13.06% | -1.36% | 34.62% | -20.37% | -9.34% | 1.2% | 22.39% | 5.73% | 4.36% | 1.75% | 21.11% | 11.61% | 1.65% | -5.39% | - |
| Non-Interest Expense | 209.59M | 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 | 85.7% | 89.51% | 81.54% | 89.22% | 75% | 71.52% | 69.49% | 75.14% | 76.31% | 78.75% | 85.36% | 79.53% | 76.03% | 72.49% | 79.16% |
| Operating Income | 37.47M | 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 % | 15.32% | 10.24% | 10.35% | 9.54% | 25% | 30% | 25.72% | 20.92% | 18.79% | 19.3% | 12.79% | 17.4% | 24.3% | 26.51% | 20.19% |
| 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 | 39.19M | 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 % | 16.02% | 10.24% | 10.35% | 9.54% | 25% | 30% | 25.72% | 20.92% | 18.79% | 19.3% | 12.79% | 17.4% | 24.3% | 26.51% | 20.19% |
| Income Tax | 9.2M | 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 % | 23.48% | 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 | 29.98M | 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 % | 12.26% | 7.9% | 7.95% | 7.04% | 19.17% | 22.88% | 19.64% | 15.89% | 14.71% | 8.9% | 8.48% | 12.51% | 16.95% | 16.82% | 12.76% |
| Net Income Growth % | -40.54% | -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) | 29.98M | 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) | 1.19 | 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 % | -38.97% | -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 | 25.16M | 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 |
Quick answers to the most common questions about buying ALRS stock.
For fiscal year 2025, Alerus Financial Corporation (ALRS) reported total revenue of $220.7M. This represents a 73.3% increase compared to $127.4M in 2012.
Alerus Financial Corporation (ALRS) is profitable, generating $17.4M in net income for the fiscal year ending 2025 with a net profit margin of 7.9%.
Alerus Financial Corporation (ALRS) reported an operating income of $22.6M, resulting in an operating profit margin of 10.2%. 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 99.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Fee income concentration and mortgage cyclicality
Metrics are mathematically derived from official filings.
Net Interest Income Rebounds From Trough
Based on ALRS's reported figures, net interest income climbed from $22.5M in 2024Q3 to $46.7M in 2026Q3, with quarterly growth of 8.3% in the latest period, suggesting the balance sheet repricing has largely absorbed the prior rate pressure.
The steep recovery from the 2024 trough indicates that loan growth, including the Metro Phoenix Bank contribution, and deposit repricing have substantially restored earning asset income. However, growth has decelerated from the 91.4% year-over-year pace seen in 2025Q3, which suggests the easy comparison base has been exhausted and future gains will depend on sustained loan volume rather than recovery effects. Investors should monitor whether deposit betas stabilize as rates plateau.
Net Interest Margin Holds Narrow Band
As reported in the financial statements, ALRS's net interest margin has held near 0.8% to 0.9% across the last several quarters, a level that appears thin relative to regional bank norms and leaves limited cushion against funding cost pressure.
A margin in this range suggests that spread income alone does not drive profitability, and the earnings base leans heavily on fee-based operations. The rounded margin figures in the data limit precision on quarter-to-quarter movement, so conclusions about direction should be treated cautiously. Relative to the peer set, the banking spread appears to be a structural constraint rather than a competitive strength.
Efficiency Ratio Improves Despite Fee Pressure
Based on ALRS's reported figures, the efficiency ratio fell to 66.4% in 2026Q3 from 83.2% in 2024Q3, indicating that cost control and revenue recovery have meaningfully improved operating leverage over the period.
The improvement is material, but at roughly two-thirds of revenue consumed by non-interest expense, the cost base remains heavy relative to the fee-based model it is meant to support. Operating leverage appears to depend on sustaining revenue growth, which the -1.4% trailing top-line decline does not yet corroborate. Investors should monitor whether personnel and administrative costs can be held flat as revenue stabilizes.
Provisioning Largely Normalized
According to recent SEC filings, ALRS recorded provision expense of $2.2M in 2026Q3 after a $12.0M charge in 2024Q4, with recent quarters showing modest and at times negative provisioning that suggests benign credit conditions.
The shift from elevated provisions in late 2024 to near-zero levels in 2025 and 2026 may reflect improved asset quality or a more favorable reserve environment under CECL. Negative provision quarters, however, warrant scrutiny because they can reflect reserve releases that flatter reported earnings. Concentration risk in North Dakota and Arizona commercial exposure suggests credit conditions should remain a monitored variable.
Fee Income Anchors Revenue Base
As reported in the financial statements, non-interest income of $34.4M in 2026Q3 represented 42.4% of revenue, and the fee share has remained above 40% across most recent quarters, underscoring the importance of the retirement and wealth segments.
A fee share of this magnitude suggests that the earnings profile is less exposed to rate cycles than a conventional bank, which is the central investment thesis of the diversified model. However, the 2025Q4 fee figure turned sharply negative, pointing to lumpy recognition or a one-time charge that the data does not explain. Dependence on asset-based and mortgage-linked fees may leave revenue exposed to equity market and housing cycles.
Earnings Beat Against Shrinking Revenue
Based on ALRS's reported figures, the Q3 EPS of $0.76 beat consensus, yet trailing revenue declined 1.4% and ROE stands at only 3.3%, which may indicate that earnings gains are driven by cost or mix rather than durable top-line growth.
The gap between management's growth framing and the reported top-line decline warrants skepticism until segment-level revenue detail is available. A low return on equity alongside contracting revenue suggests the franchise may not be compounding capital effectively. Investors should monitor whether the Phoenix expansion and fee growth can reverse the revenue trend before assigning durable earnings power.