Alerus Financial Corporation (NASDAQ: ALRS) reported Q3 EPS of $0.99, $0.59 better than the analyst estimate of $0.40.

Quarterly Highlights

• Return on average assets of 2.42%, compared to 1.68% for the second quarter of 2020
• Return on average tangible common equity(1) of 26.67%, compared to 18.88% for the second quarter of 2020
• Net interest margin (tax-equivalent)(1) was 3.17%, compared to 3.14% for the second quarter of 2020
• Allowance for loan losses to total loans, excluding PPP loans, was 1.83%, compared to 1.62% as of June 30, 2020
• Efficiency ratio(1) of 58.42%, compared to 66.31% for the second quarter of 2020
• Noninterest income as a percentage of total revenue was 67.53%, compared to 65.55% for the second quarter of 2020
• Mortgage originations totaled $511.6 million, an 18.5% increase from the second quarter of 2020
• Loans held for investment increased $337.1 million, or 19.6%, from the fourth quarter of 2019
• Deposits increased $491.1 million, or 24.9%, from the fourth quarter of 2019

CEO Comments

Chairman, President, and Chief Executive Officer Randy Newman said, “We are proud to report record quarterly net income of $17.7 million. Despite the uncertain economic environment and ongoing pandemic, our diversified business model demonstrates its value to stockholders as we delivered incredible financial performance throughout 2020. Our “One Alerus” approach to serving clients holistically through advisors and digitally through technology resulted in record levels of mortgage originations and expansions of relationships across our lines of business.

We believe we continue to be agile in our response to the novel coronavirus, or COVID-19 pandemic, by focusing on the health and well-being of our team members and communities, and helping clients during a difficult economic environment. The strength and stability of our balance sheet uniquely positioned our Company to perform well in challenging economic environments. We have a diversified loan portfolio, strong credit quality metrics, and robust levels of loan loss reserves at 1.83% of total loans, excluding Paycheck Protection Program, or PPP, loans. These balance sheet attributes, supported by a diversified business model which generates high levels of revenue despite the low rate environment is proving to be resilient in challenging and uncertain times. These fundamentals paired with the dedication of our team and technology investments are paving our path forward.”

For earnings history and earnings-related data on Alerus Financial Corporation (ALRS) click here.