The beat on EPS and revenue was driven by strong fee income growth and credit improvement, but sequential NII decline and higher provision signal headwinds from rising rates and loan mix shift. Monitor the Q4 provision trajectory and NIM stability given the Fed's recent rate increase.
Price Chart
Executive Summary
Alerus Financial reported Q3 2026 net income of $19.2M ($0.76 diluted EPS), up from $16.9M ($0.65) a year ago, driven by 8.3% net interest income growth and 16.7% noninterest income growth. Nonperforming assets fell 76% from year-end to $16.4M, and the bank generated net recoveries. The quarter was sequentially weaker than Q2 2026 ($0.81 EPS) due to a one-time interest income recovery in Q2 and higher provision expense.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS $0.76 vs $0.65 in Q3 2025 and $0.81 in Q2 2026
- Net interest income $46.7M, up 8.3% YoY but down 2.1% QoQ
- Noninterest income $34.4M, up 16.7% YoY and 4.3% QoQ
- Nonperforming assets $16.4M, down 76.4% from $69.4M at Dec 2025
- Net recoveries of $1.0M in Q3 vs net charge-offs of $2.6M in Q2
- Provision for credit losses $2.2M in Q3 vs $0.5M in Q2
- Tangible book value per share $18.74, up 10.9% YoY
- Repurchased $8.2M of stock at avg $32.75/share in Q3
- Total loans $4.2B, up 3.7% from Q2; commercial and business lending up 36.5% YoY
- Net interest margin 3.84%, down 13bp QoQ but up 34bp YoY
Financial Impact
Q3 net income $19.2M vs $16.9M YoY; EPS $0.76 vs consensus $0.66 (beat by 15.2%); revenue $81.1M (net interest income $46.7M + noninterest income $34.4M) vs consensus $76.7M (beat by 5.7%)
Risk Factors
- Net interest margin compressed 13bp QoQ due to higher deposit costs and one-time items
- Provision for credit losses increased to $2.2M from $0.5M in Q2, partly from OREO transfers
- Accumulated other comprehensive loss grew $15.3M from rising rates, pressuring equity
- Noninterest expense rose 6.6% YoY, outpacing revenue growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-033799 |
| Document: alrs20260807_8k.htm | 0001437749-26-033799 |
| Document: 0001437749-26-033799-index-headers.html | 0001437749-26-033799 |
| Document: 0001437749-26-033799-index.html | 0001437749-26-033799 |
| Document: 0001437749-26-033799.txt | 0001437749-26-033799 |
| 8-K Data (Synthetic) | 0001437749-26-033799 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Oct 28, 2026 2d ago | Press Release | $33.03 $33.17 | ▲ +0.42% | ▲ +2.20% | $33.17 (+0.42%) |
Oct 1, 2026 29d ago | Press Release | $32.67 $32.40 | ▼ −0.84% | ▼ −1.52% | $33.17 (+1.53%) |
Sep 11, 2026 7w ago | EFFECT | $33.27 $33.32 | ▲ +0.15% | ▲ +0.60% | $33.17 (−0.30%) |
Sep 2, 2026 8w ago | S-3 | $33.37 $33.79 | ▲ +1.26% | ▲ +1.64% | $33.17 (−0.60%) |
Jul 29, 2026 13w ago | Press Release | $33.56 $33.27 | ▼ −0.86% | ▼ −1.57% | $33.17 (−1.16%) |
Jul 1, 2026 17w ago | Press Release | $31.11 $31.12 | ▲ +0.03% | ▼ −0.84% | $33.17 (+6.62%) |
May 22, 2026 23w ago | Press Release | $28.84 $28.71 | ▼ −0.45% | ▼ −0.46% | $33.17 (+15.01%) |
May 19, 2026 23w ago | 8-K | $27.27 $28.11 | ▲ +3.08% | ▲ +2.04% | $33.17 (+21.64%) |
Apr 1, 2026 30w ago | DEFA14A | $23.84 $24.08 | ▲ +1.01% | ▲ +0.53% | $33.17 (+39.14%) |
US Market Status
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