Alerus Financial Corp (NASDAQ:ALRS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 10:00 am ET
Good morning and welcome to the Alerus Financial Corporation Second Quarter 2020 Earnings Conference Call. [Operator Instructions] 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 Alerus Financial Corporation Chairman, President and CEO, Randy Newman. Please go ahead.
Thank you, and good morning, everyone. This is our fourth earnings call since our IPO in September 2019. This morning, we intend to discuss our second quarter 2020 financial results and the current impact of the COVID-19 pandemic. I might also mention that we've updated our investor presentation for our second quarter performance and you can access that on our website.
Today, I'm joined by our Chief Financial Officer, Katie Lorenson; and our Chief Risk Officer, Karin Taylor. As always, we appreciate your interest in our Company.
In today's call, I will first highlight our record-setting earnings for the quarter and other key points before turning it over to Katie and Karin. After that, we would welcome your questions.
Our financial performance in the second quarter mirrors what other banks with diversified business models are reporting. Significant balance sheet growth as a result of almost $360 million of PPP loans, weaker net interest margins and record mortgage revenue growth. All of this resulted in Alerus reporting a record quarter with net income of $11.5 million. Although the pandemic has been incredibly disruptive, we are blessed with very talented, loyal and committed professional employees, who are driven to providing exceptional client service. Despite the challenges of moving to a remote work environment and the impact of COVID on personal lives, our employees worked above and beyond to deliver record-setting mortgage production of $431 million to over 2,200 clients.
Additionally, our banking division made 1,600 PPP loans providing over $360 million of funding, which also included loans to 370 new banking clients. We also introduced the first of several virtual webinars in the second quarter to provide guidance and help clients with their financial issues in a number of different areas.
At our last earnings call, I recall our past experience in dealing with disasters. These learned experiences have enabled us to move quickly and adapt to changing work conditions, proactively respond to increased clients' requests and inquiries and never lose sight of managing our Company for the long term. Despite volatile and uncertain economic conditions, our Company accomplished record-setting production in earnings.
Our leadership team is steady and disciplined in our approach. Now more than ever, I am proud to state that our Company's focus remains the same. Number one, ensure the safety and well-being of our employees; serve and meet the financial needs of our clients during these unusual economic times; and third, maintain a fortress