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Alerus Financial: Competitive Advantages At A Reasonable Price
Summary
- Alerus Financial's unique operating structure helps it outperform peers even in challenging banking environments such as the one we are in currently.
- Alerus’ higher ROE and burgeoning non-interest income businesses command a higher valuation than peers, even though it is currently trading at a cheaper multiple.
- Synergies between its bank and other businesses result in a sustained competitive advantage due to substantially cheaper cost of funds compared to peers.
- Alerus has demonstrable economies of scale.
I work as an Equity Analyst after graduating in Finance.
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