(Corrects Adjusted EPS in Key Details to $0.72 from $0.21)

Overview

* Alerus Financial ( ALRS ) Q2 net income rises to $20.3 mln, beating

analyst expectations, per LSEG data

* Adjusted EPS for Q2 increases 28.6% from Q1 but misses

estimates, per LSEG data

* Co increased quarterly dividend by 5% to $0.21 per share,

marking 39th consecutive yr of increases

Outlook

* Company remains focused on executing long-term strategy

and

sustainable growth

* Alerus emphasizes enhancing client relationships across

integrated services

* Company highlights disciplined execution and diversified

business model

* Alerus committed to delivering consistent shareholder

value

Result Drivers

* REVENUE GROWTH - Increase in net interest income and

noninterest

income, including gains on loan sales, drove revenue growth

* MARGIN GROWTH - Net interest margin rose to 3.51% in Q2 vs

2.39%

in Q2 2024, due to higher rates on interest earning assets from

organic loan growth and the HMNF acquisition

* CREDIT RISK MANAGEMENT - Strategic sale of non-owner

occupied

commercial real estate loans and low net charge-offs demonstrate

proactive credit risk management

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $0.72 $0.55 (5

Adjusted Analysts

EPS )

Q2 EPS $0.78

Q2 Net Beat $20.30 $14.10

Income mln mln (5

Analysts

)

Q2 Net $43 mln

Interest

Income

Q2 Net 3.5%

Interest

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold"

and

the breakdown of recommendations is 2 "strong buy" or "buy", 3

"hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer

group is

"buy."

* Wall Street's median 12-month price target for Alerus

Financial

Corp ( ALRS ) is $24.00, about 9.5% above its July 25 closing price of

$21.72

* The stock recently traded at 10 times the next 12-month

earnings

vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based

on LSEG and company data. It was checked and edited by a Reuters

journalist prior to publication.)