Strategic Expansion | Alerus Financial's acquisition of HMN Financial marks a significant move into the Rochester, Minnesota market, promising substantial growth opportunities |
Financial Projections | The merger is expected to boost earnings per share by 45% upon full integration, with a tangible book value dilution earn-back period of about 2.2 years |
Market Sentiment | Analysts maintain a "Market Perform" rating on ALRS stock, with a price target of $22.00, reflecting cautious optimism about the acquisition's long-term potential |
Integration Challenges | Success hinges on effective merging of corporate cultures and leveraging synergies, crucial for realizing projected benefits and maximizing shareholder value |
Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services in North Dakota, Minnesota, and Arizona; and retirement and benefit plans through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.
Metrics to compare | ALRS | Sector Sector - Average of metrics from a broad group of related Financial sector companies | Relationship RelationshipALRSPeersSector | |
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P/E Ratio | 160.3x | 9.3x | 8.7x | |
PEG Ratio | −1.80 | 0.15 | 0.03 | |
Price/Book | 1.3x | 1.1x | 1.0x | |
Price / LTM Sales | 3.1x | 2.6x | 2.7x | |
Upside (Analyst Target) | 14.3% | 48.7% | 13.7% | |
Fair Value Upside | Unlock | 13.6% | 2.6% | Unlock |