Alerus Financial (ALRS) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $81M; net income was $19.2M and diluted EPS was $0.76, up 13.4% YoY.

• Loans rose 3.7% QoQ to $4.2B and deposits increased 2.7% to $4.3B; commercial and business lending growth supported a more commercial mix.

• Adjusted Q3 PPNR was $25.8M versus $22.1M YoY; reported ROTCE was 17.35%.

Financial highlights

• Net interest income was $46.7M, up 8.3% YoY and down 2.1% QoQ; reported noninterest income was $34.4M, up 16.7% YoY.

• Adjusted noninterest income was $32.8M, up 11.3% YoY and 1.6% QoQ; adjusted revenue was $79.5M.

• Reported noninterest expense was $53.9M, up 6.6% YoY; adjusted noninterest expense was $53.7M, up 6.4% YoY, with a 64.4% adjusted efficiency ratio.

• 9M net income was $63.0M versus $50.5M in 9M 2025.

Outlook and guidance

• FY26 guidance calls for mid-single-digit loan growth, low-single-digit deposit growth, NIM of 3.75%-3.85%, mid-single-digit adjusted revenue and noninterest income growth, and low-to-mid-single-digit adjusted expense growth.

• Adjusted ROA is expected above 1.25%; guidance assumes the federal funds rate remains static from Sept. 30 through Dec. 31, 2026.

• Q4 purchase accounting accretion is expected at $1.8M; estimated total accretion is ~$13M in 2026 and ~$9M in 2027.

• Strong loan pipelines supported expectations for full-year mid-single-digit loan growth; mortgage activity faces seasonal and rate-related weakness.