Alerus Financial Corporation reported third‑quarter 2025 results that included a net income of $16.9 million and a diluted earnings per share of $0.65. Total revenue for the quarter was $72.8 million, up 4.5% from the same period in 2024 and 1.2% lower than the $73.2 million reported in Q2 2025. Net interest income reached $43.1 million, a 91.4% year‑over‑year increase, while non‑interest income fell 3.8% quarter‑over‑quarter due to a decline in wealth‑management transaction fees and the absence of a one‑time gain on the sale of a hospitality loan that boosted Q2 results.
The quarter‑over‑quarter decline in net income and EPS—$16.9 million and $0.65 versus $20.3 million and $0.78 in Q2 2025—was driven by lower non‑interest income and a modest drop in fee income from the wealth‑management segment. Year‑over‑year, however, the company posted a 225% increase in net income and a 150% rise in EPS compared with Q3 2024, when net income was $5.2 million and EPS was $0.26.
Key performance drivers included a 2.7% growth in total loans to $4.1 billion and a 0.8% rise in deposits to $4.4 billion. The retirement‑and‑benefit services segment generated $44.0 billion in assets under administration, up 3.7% from the prior quarter, while wealth‑management assets grew 4.3% to $4.8 billion. The integration of the Home Federal acquisition—completed in October 2024 for $128.8 million—contributed additional fee income and expanded the company’s footprint into Minnesota.
Management reiterated that the company remains on track to meet its 2025 guidance, which includes a net interest margin target of 3.35%–3.45% and expectations of mid‑single‑digit loan growth and low‑single‑digit deposit growth for 2026. The company also noted a 1.51% allowance for credit losses on loans, reflecting a modest increase in non‑performing assets related to a single commercial relationship.
The earnings release highlighted that the company’s diversified model—where fee income accounts for over 40% of total revenue—provides resilience across economic cycles. Management emphasized disciplined loan pricing, efficient cost management, and the ongoing integration of the Home Federal acquisition as key factors supporting the quarter’s performance.
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