Alerus Financial Q2 NII beats estimates on higher loan yields

The current average analyst rating on the shares is hold, with the breakdown of recommendations at 1 strong buy or buy, 4 hold and no sell or strong sell.

The average consensus recommendation for the banks peer group is buy.

Wall Street's median 12-month price target for Alerus Financial Corp is $32.00, about 3.4% below its July 28 closing price of $33.13.

The stock recently traded at 11 times the next 12-month earnings versus a P/E of 9 three months ago.

Net interest income rose due to a one-time $1.6 million interest income recovery on a nonaccrual loan resolution, higher purchase accounting accretion, and higher loan yields.

Noninterest income increased, driven by a property sale gain, higher swap fee income and mutual fund investment gains, partially offset by lower mortgage banking revenue.

Credit quality improved, with nonperforming assets declining sharply, mainly due to the resolution of a specific commercial and industrial loan relationship.

Alerus Financial Corp, a U.S. commercial bank, said second-quarter adjusted earnings per share and net income beat analyst expectations.