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Summary Alerus Financial reported record earnings of $0.44 per share. The bank continues to benefit from a healthy loan portfolio and strong revenues from non-interest related activities. After a long run, shares trade at a premium, piper jaffray but the bank's piper jaffray performance continues to deliver.
Alerus Financial Corp. (OTCQB: ALRS ) posted earnings of $0.44 per diluted share for the third quarter of 2014, up 15.8% YOY. Net income for the quarter was at $6.2 million, up 18.7% YOY. Some investors steer clear of smaller community banks because of their low trading volume, and management's 3-for-1 stock split at the end of August was done with this in mind. I also mention it here because the numbers above are adjusted for the split, anyone looking at older filings (or my last article ) will need to do a little piper jaffray extra work.
After restructuring its investment portfolio (to decrease duration / interest rate risk), the bank booked related security gains of $1.8 million, bringing non-interest income up to $21.49 million for the quarter. Taking this out, and discounting mortgage origination fees, brings piper jaffray the bank's 'core' non-interest revenues down to ~$19 million (my calculation). Still a very high level considering it tops the bank's net interest income ($14 million).
Retirement service and wealth management lines (~60% of core fee income) continue to grow and support the bank's premium valuation (trades at 1.93X TBV), but they will need to continue to grow for shares to maintain their momentum. This bank is going up for sure, but shares may be a little ahead of earnings. Because of this, I'd keep new money on the sidelines and it makes a lot more sense to sit tight and/or hold shares at this time.
Disclosure: The author piper jaffray is long ALRS. (More...) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Thank you for your interest in Seeking Alpha PRO Our PRO subscription service was created for fund managers, and the cost of the product is prohibitive for most individual investors. piper jaffray If you are an investment professional with over $1M AUM and received this message in error, click here and you will be contacted piper jaffray shortly.
Author Following Options:
Summary Alerus Financial reported record earnings of $0.44 per share. The bank continues to benefit from a healthy loan portfolio and strong revenues from non-interest related activities. After a long run, shares trade at a premium, piper jaffray but the bank's piper jaffray performance continues to deliver.
Alerus Financial Corp. (OTCQB: ALRS ) posted earnings of $0.44 per diluted share for the third quarter of 2014, up 15.8% YOY. Net income for the quarter was at $6.2 million, up 18.7% YOY. Some investors steer clear of smaller community banks because of their low trading volume, and management's 3-for-1 stock split at the end of August was done with this in mind. I also mention it here because the numbers above are adjusted for the split, anyone looking at older filings (or my last article ) will need to do a little piper jaffray extra work.
After restructuring its investment portfolio (to decrease duration / interest rate risk), the bank booked related security gains of $1.8 million, bringing non-interest income up to $21.49 million for the quarter. Taking this out, and discounting mortgage origination fees, brings piper jaffray the bank's 'core' non-interest revenues down to ~$19 million (my calculation). Still a very high level considering it tops the bank's net interest income ($14 million).
Retirement service and wealth management lines (~60% of core fee income) continue to grow and support the bank's premium valuation (trades at 1.93X TBV), but they will need to continue to grow for shares to maintain their momentum. This bank is going up for sure, but shares may be a little ahead of earnings. Because of this, I'd keep new money on the sidelines and it makes a lot more sense to sit tight and/or hold shares at this time.
Disclosure: The author piper jaffray is long ALRS. (More...) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Thank you for your interest in Seeking Alpha PRO Our PRO subscription service was created for fund managers, and the cost of the product is prohibitive for most individual investors. piper jaffray If you are an investment professional with over $1M AUM and received this message in error, click here and you will be contacted piper jaffray shortly.
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