Alerus Financial Corporation (NASDAQ:ALRS) Q2 2024 Earnings Conference Call July 25, 2024 12:00 PM ET

Company Participants

Katie Lorenson – President and Chief Executive Officer
Al Villalon – Chief Financial Officer
Karin Taylor – Chief Risk and Operating Officer
Jim Collins – Chief Banking and Revenue Officer
Forrest Wilson – Chief Retirement Services Officer,

Conference Call Participants

Brendan Nosal – Hovde Group
David Feaster – Raymond James
Nathan Race – Piper Sandler
Matt Renck – KBW

Operator

Good afternoon. Welcome to the Alerus Financial Corporation Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

This call may include forward-looking statements and the company's actual results may differ materially from those indicated in any forward-looking statements. Important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are listed in the earnings release and the company's SEC filings.

I would now like to turn the conference over to the Alerus Financial Corporation President and CEO, Katie Lorenson. Please go ahead.

Katie Lorenson

Thank you. Good morning and thank you for joining Alerus’ second quarter earnings conference call. Joining me on the call today is CFO, Al Villalon; our Chief Risk and Operating Officer, Karin Taylor; our Chief Banking and Revenue Officer, Jim Collins; and our Chief Retirement Services Officer, Forrest Wilson.

I will kick off the call today with an overview of the results for the quarter, a recap of some strategic highlights, some additional color on credit during the quarter, and an update on our pending acquisition of HMN Financial.

For the quarter, we reported net income of $6.2 million or $0.31 of earnings per share. Operating results for the quarter generally exceeded expectations with continued improving trends across our diversified sources of revenue, driving impressive improvement in PPNR or pre-provision net revenue of 48% on a linked quarter basis.

The team we are building continues to excel in adding full client relationships across our commercial wealth and private banking segments. Notably, we exceeded expectations for deposits at the end of the quarter with our fifth straight quarter of deposit growth in a very difficult and competitive deposit environment.

A huge shout out to our team members who have done a fantastic job again sourcing new core deposit relationships, retaining inflows and capturing liquidity event opportunities. This success allowed us to see deposit balances tick up and offset substantial seasonal outflows. Deposit wins were sourced from all markets and generally the result of our One Alerus approach to holistic opportunities to serve clients across the suite of commercial and private banking, treasury management and wealth advisory services.