NASDAQ$ALRS

Alerus Financial Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Alerus Financial Corporation reported a net income of $5.4 million for Q1 2020.

Alerus Financial Corporation reported a net income of $5.4 million for the first quarter of 2020, with diluted earnings per share of $0.30. The company's performance was influenced by the economic conditions related to COVID-19, leading to an increased allowance for loan losses. However, deposit growth remained strong and noninterest income contributed significantly to revenue.

  • Net income for Q1 2020 was $5.4 million, or $0.30 per diluted common share.
  • Noninterest income accounted for approximately 60% of total revenue.
  • Allowance for loan losses increased due to the uncertain economic impact of COVID-19.
  • Total deposits increased by $150.2 million, reflecting strong deposit growth.

Headline financials

Total Revenue

$46M

Previous: $43.7M+5.2%
EPS (adj)

$0.30

Previous: $0.47-36.2%
ROAA

0.9%

No prior period
Efficiency ratio

77.5%

No prior period
Capital Expenditures

-$689K

Previous: $1.37M-150.4%
Free Cash Flow

$4.67M

Previous: -$2.77M+269.0%
Net Income

$5.36M

Previous: $6.44M-16.7%
Operating Income

$35.2M

No prior period
Gross Profit

$43.5M

No prior period
Cash & Equivalents

$198M

Previous: $44.8M+342.6%
Total Assets

$2.51B

No prior period
Stock-Based Comp

$235K

Previous: $346K-32.1%

Revenue & EPS history

Alerus · Revenue · Quarterly

$46M

Q1 2020+5.2%vs Q1 2019
Beat estimate in 4 of 6 quarters(67%)
ActualEstimate

Revenue by segment

Alerus · $27.2M total across 5 segments · Q1 2020

  • Retirement services
    $16.2M
  • Mortgage banking
    $5.05M
  • Wealth management
    $4.05M
  • Other
    $1.46M
  • Service charges
    $423K

Forward guidance

Alerus Financial Corporation did not provide specific forward guidance in the provided earnings report. The report highlights the company's focus on serving clients and ensuring employee well-being during the COVID-19 pandemic, while maintaining a strong capital position and adapting its business model to the changing environment.

Tailwinds

  • Alerus is focused on serving clients during unprecedented times.
  • Alerus is helping clients access critical funding with the new Paycheck Protection Program.
  • Alerus is answering questions regarding retirement plans and the numerous changes following the passing of the CARES Act.
  • Alerus is supporting clients facing financial hardship with loan modifications.
  • Alerus has robust capital levels from its recent initial public offering.

Headwinds

  • Significant uncertainty lies ahead due to COVID-19.
  • Alerus increased its allowance for loan losses due to the uncertain economic impact and duration of COVID-19.
  • Asset based fees declined primarily due to market impact during the first quarter of 2020, as a result of the volatility and downward movement of the financial markets in response to COVID-19.
  • Mortgage banking revenue decreased due to a seasonal decrease in mortgage originations of $32.7 million during the quarter.
  • Noninterest income decreased $2.4 million, or 8.0%, compared to the fourth quarter of 2019

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

52%

28 / 54 earnings

Positive

+13.3%

Q1 2025

Best reaction

-14.6%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+5.2%+11.0%
Q4 2025+2.5%+7.5%+0.2%
Q3 2025+0.2%+0.4%+1.6%
Q1 2025+13.3%+16.2%+18.7%
Q4 2024+3.8%+5.6%+0.9%
Q3 2024-14.6%-15.8%-8.4%
Q2 2024-1.2%-0.3%+0.9%
Q1 2024-2.1%-4.5%-6.9%
Q4 2023+6.2%+10.8%+0.3%
Q3 2023+1.4%-1.7%+6.3%
Q2 2023+1.9%+2.9%-3.0%
Q1 2023+0.3%-2.6%+13.7%
Q4 2022-12.0%-12.8%-12.6%
Q3 2022-2.2%+0.0%+5.2%
Q2 2022+4.3%+10.1%+6.3%
Q1 2022+6.0%+0.4%+3.0%
Q4 2021+0.0%-0.1%+2.3%
Q3 2021+3.3%+3.4%-2.2%
Q2 2021+0.8%-1.1%+7.7%
Q1 2021-1.5%-0.0%+11.0%
Q4 2020-5.7%-6.2%+0.0%
Q3 2020+0.3%+0.1%+14.1%
Q2 2020+3.2%+0.1%+7.7%
Q1 2019+0.7%+7.6%+22.6%
Q1 2020+6.9%+3.0%+14.6%
Q1 2018-2.6%+5.0%+3.9%
Q4 2017-2.6%+5.0%+3.9%
Q2 2019-2.6%+5.0%+3.9%
Q2 2018-2.6%+5.0%+3.9%
Q4 2019+0.0%-2.1%-3.9%
Q3 2018-0.7%-0.5%+3.5%
Q4 2018-0.7%-0.5%+3.5%
Q3 2019+0.2%+0.3%+0.7%
Q3 2017+0.0%-0.1%+0.2%
Q2 2017+0.1%+0.9%+2.2%
Q1 2017+0.2%+0.1%+2.1%
Q4 2016+2.6%+0.3%+0.0%
Q3 2016+0.5%-0.1%-2.1%
Q2 2016+0.0%+0.0%+0.1%
Q1 2016+4.3%
Q4 2015-0.8%
Q3 2015-0.8%
Q2 2015+1.1%
Q1 2015+0.1%
Q4 2014+3.8%
Q3 2014-0.5%
Q2 2014+0.0%
Q1 2014+10.8%
Q4 2013-1.5%
Q3 2013+0.0%
Q2 2013+0.0%
Q1 2013+0.0%
Q4 2012+0.0%
Q3 2012+0.0%

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