Alerus Financial Corporation Reports First Quarter 2021 Net Income of $15.2 Million
Alerus Financial Corporation (Nasdaq: ALRS) reported net income of
CEO Comments
Chairman, President, and Chief Executive Officer Randy Newman said, “We are pleased to report our record performance of 2020 carried through into the first quarter of 2021. We believe Alerus continues to be well positioned for growth with our diversified business model, large and growing client base, and holistic, advisor-focused approach to serving clients. We started 2021 with several hiring initiatives and were pleased to have two high performing mortgage bankers join our Twin Cities team in the first quarter. We continue to focus on adding talent to our organization, especially in areas that will grow revenue.
Our fee income business lines delivered strong results lead by our mortgage division with mortgage originations exceeding
On the banking side, we continued to see stable credit quality, strengthening local economies and low levels of loan deferrals during the quarter. Our reserve levels remain very robust at over
In addition to our emphases on growth, we are also focused on technology investments. Over the last several years, we have invested in new technology for both our business and consumer clients, and now, we continue to develop robotics and other automation processes to improve our efficiency and support our ongoing growth initiatives. Today, we have 26 automated process robots in production across our organization. Many of these robots were developed within the last year to support unprecedented mortgage volume and new loans under the PPP. Furthermore, we recently became one of 66 limited partners in a fund focused on the acceleration of technology for community banks. We believe this is a valued partnership that will allow us to stay abreast of emerging technology trends in the community banking landscape.
Also in the first quarter, we redeemed our previously issued subordinated debt with a rate of
Quarterly Highlights
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Return on average total assets of
2.02% , compared to1.34% for the fourth quarter of 2020 -
Return on average tangible common equity(1) of
23.03% , compared to15.13% for the fourth quarter of 2020 -
Net interest margin (tax-equivalent)(1) was
3.12% , compared to3.23% for the fourth quarter of 2020 -
Allowance for loan losses to total loans, excluding Paycheck Protection Program, or PPP, loans, was
2.01% , compared to2.00% as of December 31, 2020 -
Efficiency ratio(1) of
66.43% , compared to74.44% for the fourth quarter of 2020 -
Noninterest income increased
$2.2 million and was64.97% of total revenue, compared to62.57% for the fourth quarter of 2020 -
Mortgage originations totaled
$518.0 million , a14.7% decrease from the fourth quarter of 2020 -
Investment securities increased
$202.8 million , or34.2% , from the fourth quarter of 2020 -
Loans held for sale decreased
$43.8 million , or35.8% , from the fourth quarter of 2020 -
Loans held for investment decreased
$42.0 million , or2.1% , from the fourth quarter of 2020 -
Deposits increased
$145.6 million , or5.7% , from the fourth quarter of 2020
(1) Represents a non-GAAP financial measure. See “Non-GAAP to GAAP Reconciliations and Calculation of Non-GAAP Financial Measures.”
Selected Financial Data (unaudited) |
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Alerus Financial Corporation
NASDAQ:ALRSALRS RankingsALRS Latest NewsALRS Stock Data
390.59M
17.52M
11.3%
45.97%
2.01%
Commercial Banking
Finance and Insurance
United States of America
GRAND FORKS
About ALRSwith roots tracing back to 1879, alerus is a financial services company offering banking, mortgage, retirement, health and welfare, and wealth management. banking offices are located in minnesota, north dakota, and arizona. retirement services offices are located in minnesota, michigan, and new hampshire.
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