Alerus Financial Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016
January 25, 2017
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Alerus Financial Corp. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company reported total interest income of $17,655,000 against $14,051,000 a year ago. Net interest income was $15,914,000 against $13,079,000 a year ago. Income before income taxes was $8,229,000 against $3,875,000 a year ago. Net income applicable to common stock was $5,634,000 against $2,781,000 a year ago. Diluted earnings per common share were $0.40 against $0.20 a year ago. The primary reason for the increase in net interest income during the quarter was the acquisition of Beacon Bank's loan and investment securities balances. Return on average common equity (U.S. GAAP basis) was 13.04% against 6.71% a year ago. Return on average tangible common equity was 21.33% against 8.62% a year ago. Adjusted cash earnings per share were $0.48 against $0.23 a year ago. Non-GAAP net income applicable to common stock was $5,634,000 against $2,781,000 a year ago. Revenue was $44.4 million, up 22.9% from the fourth quarter of 2015. ROA was 1.09%. Book value per share as at December 31, 2016 was $12.47 against $11.67 a year ago.
For the full year, the company reported total interest income of $69,942,000 against $56,329,000 a year ago. Net interest income was $62,774,000 against $52,871,000 a year ago. Income before income taxes was $21,169,000 against $23,791,000 a year ago. Net income applicable to common stock was $14,006,000 against $16,908,000 a year ago. Earnings per common share were $1.00 against $1.21 a year ago. Total cash flows from operating activities were $16,263,000 against $24,359,000 a year ago. Purchases of premises and equipment were $6,290,000 against $3,906,000 a year ago. The increase in net revenue, year-over-year, included an increase of $9.9 million in net interest income, primarily from the Beacon Bank acquisition, $6.7 million higher retirement services income primarily from the ABGNCS acquisition, increased mortgage banking revenues of $3.7 million, due to higher origination volumes, and an increase in wealth management revenues of $1.2 million. Return on average common equity (U.S. GAAP basis) was 8.30% against 10.51% a year ago. Return on average tangible common equity was 14.88% against 13.41% a year ago. Adjusted cash earnings per share were $1.30 against $1.40 a year ago. Non-GAAP net income applicable to common stock was $14,006,000 against $16,908,000 a year ago. Return on average assets was 0.73%, down from 1.12% in 2015. Revenue was $168.0 million, up 15.0% from 2015.
Alerus Financial Corporation is a diversified financial services company. Through its subsidiary, Alerus Financial, National Association (the Bank), the Company provides financial solutions to businesses and consumers. The Company's segments include Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. The Banking segment offers a complete line of loan, deposit, cash management, and treasury services. The Retirement and Benefit Services segment provides various services, including recordkeeping and administration services to qualified retirement plans; ESOP trustee, recordkeeping, and administration; and investment fiduciary services to retirement plans, among others. The Wealth Management segment provides advisory and planning services, investment management, and trust and fiduciary services. The Mortgage segment offers first and second mortgage loans through a centralized mortgage unit in Minneapolis, Minnesota, as well as through the banking office locations.