ALRS

Financial Services

Alerus Financial Corporation · Banks - Regional · $700M

UQS Score — Balanced Preset
41.3
Below Average

Alerus Financial Corporation scores 41.3/100 using the Balanced preset.

UQS vs Financial Services Sector
ALRS
41.3
Sector avg
39.7
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Weak
Valuation
Attractive

What is Alerus Financial Corporation?

Alerus Financial Corporation is a diversified financial services company headquartered in Grand Forks, serving both businesses and individual consumers across banking, retirement, wealth management, and mortgage segments.

Alerus generates revenue through four business lines: traditional banking products such as deposits and commercial loans, retirement and benefit plan administration, wealth management and trust services, and residential mortgage origination. This multi-segment model allows the company to serve clients across multiple financial needs, though it also introduces complexity in managing diverse revenue streams simultaneously.

Alerus Financial was incorporated in 2003 and is headquartered in Grand Forks, North Dakota.

  • Commercial and consumer lending
  • Retirement plan administration and benefit services
  • Wealth management and personal trust services
  • Residential mortgage origination

Is ALRS a Good Stock to Buy?

UQS Score rates ALRS as Below Average overall.

Among the five pillars, Valuation stands out as the relative bright spot, rated Good — suggesting the stock is not significantly overpriced relative to its fundamentals. This may appeal to value-oriented investors who prioritize entry price.

Quality, Moat, Growth, and Risk are all rated Weak, indicating broad structural challenges across profitability, competitive positioning, earnings trajectory, and balance sheet resilience.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does ALRS pay dividends?

Yes — Alerus Financial Corporation pays a dividend.

Alerus Financial pays a regular dividend, which may appeal to income-focused investors in the small-cap banking space. For a company operating across banking and retirement services, returning capital via dividends signals a degree of financial commitment to shareholders, though investors should weigh this against the Weak Risk pillar rating.

When does ALRS report earnings?

Alerus Financial reports earnings on a quarterly cadence, typical for US-listed financial institutions.

Given the Weak ratings across Quality and Growth pillars, recent earnings cycles have reflected pressure on profitability and revenue expansion relative to sector peers. The multi-segment model adds reporting complexity that investors should monitor closely.

For the most recent quarter's results, visit Alerus Financial's investor relations page directly.

ALRS Price History

-8.7% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Alerus Financial Corporation?

$
Today it would be worth
$10,205
That's a +2.0% total return, or +0.4% annualized.

Based on Alerus Financial Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

ALRS Long-term Outlook

The combination of Weak Growth and Weak Risk pillar ratings points to a cautious fundamental outlook for Alerus. The company's diversified model across banking, retirement, and wealth management could provide some stability, but meaningful acceleration in earnings appears constrained by current structural headwinds. The Good Valuation rating suggests limited downside from price alone, but quality concerns temper the longer-term picture.

Growth drivers

  • Expansion of retirement and benefit services amid growing demand for plan administration
  • Cross-selling opportunities across banking, wealth, and mortgage client bases

Key risks

  • Sustained weakness across Quality and Moat pillars limiting competitive differentiation
  • Interest rate sensitivity inherent to community banking operations
  • Execution risk in managing four distinct business segments simultaneously

ALRS vs Peers

Alerus Financial operates in a competitive small-cap regional banking landscape alongside several similarly sized institutions.

SHBIALRS scores lower
Shore Bancshares, Inc.

Shore Bancshares focuses on community banking across the Mid-Atlantic region, offering a more geographically concentrated model compared to Alerus's multi-segment approach.

HIFSALRS scores lower
Hingham Institution for Savings

Hingham Institution for Savings is a Massachusetts-based thrift with a narrower product focus, historically emphasizing real estate lending over diversified financial services.

RRBIALRS scores lower
Red River Bancshares, Inc.

Red River Bancshares serves Louisiana markets with a community banking model, competing with Alerus primarily on commercial and consumer deposit products.

Frequently Asked Questions

What does Alerus Financial do?

Alerus Financial provides financial services across four segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. It serves both businesses and individual consumers, offering everything from commercial loans and deposit accounts to retirement plan administration and personal trust services.

Does ALRS pay dividends?

Yes, Alerus Financial pays a regular dividend. Income-focused investors may find this appealing, though the Weak Risk pillar rating is worth considering alongside any dividend income expectations. Check the company's investor relations page for the current dividend schedule.

When does ALRS report earnings?

Alerus Financial follows a standard quarterly earnings cadence common among US-listed banks. For exact upcoming report dates, refer to the company's investor relations page or your brokerage's earnings calendar.

Is ALRS a good stock to buy?

UQS Score rates ALRS as Below Average, reflecting Weak ratings across Quality, Moat, Growth, and Risk pillars. The Valuation pillar is rated Good, which may interest value-oriented investors. A full pillar breakdown is available to UQS Pro members.

Is ALRS overvalued?

The UQS Valuation pillar for ALRS is rated Good, suggesting the stock is not significantly overpriced relative to its fundamentals. However, valuation alone does not offset the broader Below Average composite score driven by weakness in other pillars.

How does ALRS compare to its competitors?

Alerus competes with regional and community banks such as Shore Bancshares, Hingham Institution for Savings, and Red River Bancshares. Unlike most pure-play community banks, Alerus differentiates through its retirement and wealth management segments, though its overall UQS Score remains Below Average.

What is ALRS's market cap bracket?

Alerus Financial is classified as a small-cap company. Small-cap financials can offer growth potential but typically carry higher volatility and liquidity risk compared to large-cap peers in the banking sector.

Who founded Alerus Financial?

Alerus Financial Corporation was incorporated in 2003 and is headquartered in Grand Forks, North Dakota. Detailed founding history and leadership background are available on the company's official website and public filings.

Is ALRS a long-term quality investment?

From a long-term quality perspective, ALRS's UQS Score of Below Average — driven by Weak ratings in Quality, Moat, Growth, and Risk — raises questions about durable competitive advantage and earnings consistency. The Good Valuation rating provides some cushion, but long-term quality indicators remain challenged.

What is the main competitive advantage of Alerus Financial?

Alerus's multi-segment model — spanning banking, retirement services, wealth management, and mortgage — allows it to serve clients across multiple financial needs. However, the Weak Moat pillar rating suggests this diversification has not yet translated into a strong, defensible competitive position relative to peers.

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Pro Analysis

ALRS — Score History

3035404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 23 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202640.946.022.032.835.180.9+0.1
May 22, 202640.846.022.032.835.180.1-0.1
May 21, 202640.946.022.032.835.180.9-0.3
May 20, 202641.246.022.032.835.182.50.0
May 19, 202641.246.022.032.835.182.70.0
May 17, 202641.246.022.032.835.182.5-0.1
May 16, 202641.346.022.032.835.183.3+0.1
May 14, 202641.246.022.032.835.182.5+0.1
May 12, 202641.146.022.032.835.181.70.0
May 11, 202641.146.022.032.835.182.0+0.9

ALRS — Pillar Breakdown

Quality

46.0/100 (25%)

Alerus Financial Corporation has average quality metrics, with room for improvement in margins or capital efficiency.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

32.8/100 (20%)

Alerus Financial Corporation faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRModerate

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

35.1/100 (15%)

Alerus Financial Corporation has some risk factors including moderate leverage or solvency concerns.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

83.5/100 (15%)

Alerus Financial Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

22/100 (25%)

Alerus Financial Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ALRS.

Score Composition

Quality
46.0×25%11.5
Growth
32.8×20%6.6
Risk
35.1×15%5.3
Valuation
83.5×15%12.5
Moat
22.0×25%5.5
Total
41.3Below Average

Financial Data

More Stock Analysis

How is the ALRS UQS Score Calculated?

The UQS (Unified Quality Score) for Alerus Financial Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Alerus Financial Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Alerus Financial Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.