Alpine Banks of Colorado announces financial results for first quarter 2024

Rhea-AI Summary

Alpine Banks of Colorado reported net income of $10.6 million for the first quarter of 2024, with basic earnings per Class A common share decreasing by 3.9% and Class B common share decreasing by 45.5% compared to the same period in 2023. The net interest margin for the quarter was 2.81%, down from 2.84% in the previous quarter and 3.52% in the first quarter of 2023. Total assets increased by 2.6% to $6.59 billion, with assets under Alpine Bank Wealth Management division reaching $1.25 billion. Loans outstanding totaled $4.0 billion, and total deposits rose to $5.9 billion, reflecting an increase of $196.1 million compared to the previous year. The Bank remains well-capitalized, with capital ratios exceeding minimum requirements.

Positive

• Customer deposit balances increased by 5.3% in the first quarter of 2024, reaching $5.44 billion.

• Assets under the Alpine Bank Wealth Management division grew by 8.4% to $1.25 billion.

• Loans outstanding saw a 2.2% increase compared to the same period in 2023.

Negative

• Basic earnings per Class A and B common shares decreased in the first quarter of 2024 compared to the same period in 2023.

• Net interest margin decreased to 2.81% in the first quarter of 2024 from 2.84% in the previous quarter and 3.52% in the first quarter of 2023.

• Noninterest income decreased by $1.2 million in the first quarter of 2024 compared to the fourth quarter of 2023.

GLENWOOD SPRINGS, Colo., May 02, 2024 (GLOBE NEWSWIRE) -- Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank (the “Bank”), today announced results (unaudited) for the quarter ended March 31, 2024. The Company reported net income of $10.6 million, or $98.32 per basic Class A common share and $0.66 per basic Class B common share, for first quarter 2024.

Highlights in first quarter 2024 include:

• Basic earnings per Class A common share decreased 3.9%, or $3.94, during first quarter 2024.
• Basic earnings per Class A common share decreased 45.5%, or $82.06 compared to first quarter 2023.
• Basic earnings per Class B common share decreased 3.9%, or $0.02, during first quarter 2024.
• Basic earnings per Class B common share decreased 45.5%, or $0.55 compared to first quarter 2023.
• Net interest margin for first quarter 2024 was 2.81%, compared to 2.84% in fourth quarter 2023, and 3.52% in first quarter 2023.
  

“The first quarter 2024 showed some promising trends for Alpine. Customer deposit balances increased during the quarter, allowing us to pay down a portion of our brokered deposits,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “Our customer deposit base grew 5.3% in the first quarter 2024 from $5.17 billion to $5.44 billion. We plan to continue our focus on deposit growth for the remainder of 2024.”

Net Income
Net income for first quarter 2024 and fourth quarter 2023 was $10.6 million and $11.0 million, respectively. Interest income increased $0.9 million in first quarter 2024 compared to fourth quarter 2023, primarily due to increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by decreases in volume in the loan portfolio, the securities portfolio, and balances due from banks. Interest expense increased $1.5 million in first quarter 2024 compared to fourth quarter 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with an increase in volume of deposits. These increases were partially offset by a decrease in volume of other borrowings. Noninterest income decreased $1.2 million in first quarter 2024 compared to fourth quarter 2023, primarily due to decreases in earnings on bank-owned life insurance, service charges on deposit accounts, and other income. Noninterest expense increased $1.7 million in first quarter 2024 compared to fourth quarter 2023, due to increases in salary and employee benefit expenses and occupancy expenses, slightly offset by decreases in furniture and fixture expenses and other expenses A provision for loan losses reversal of $0.7 million was recorded in first quarter 2024 compared to a $2.7 million provision for loan losses recorded in the fourth quarter 2023.

Net income for the three months ended March 31, 2024, and March 31, 2023, was $10.6 million and $19.7 million, respectively. Interest income increased $8.2 million in first quarter 2024 compared to first quarter 2023, primarily due increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $17.9 million in first quarter 2024 compared to first quarter 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $0.2 million in 2024 compared to 2023, primarily due to increases in earnings on bank-owned life insurance and service charges on deposit accounts slightly offset by a decrease in other income. Noninterest expense increased $3.3 million in 2024 compared to 2023, due to increases in other expenses, salary and employee benefit expenses, furniture and fixtures expenses, and occupancy expenses. Provision for loan losses decreased $1.1 million in 2024 due to portfolio declines and a small volume of loan charge-offs, compared to the three months ended March 31, 2023.

Net interest margin decreased from 2.84% to 2.81% from fourth quarter 2023 to first quarter 2024. Net interest margin for the three months ended March 31, 2024, and March 31, 2023, was 2.81% and 3.52%, respectively.

Assets
Total assets increased $166.3 million, or 2.6%, to $6.59 billion as of March 31, 2024, compared to December 31, 2023, primarily due to increased cash and due from banks, partially offset by decreased loans receivable and investment securities balances. The Alpine Bank Wealth Management* division had assets under management of $1.25 billion on March 31, 2024, compared to $1.15 billion on December 31, 2023, an increase of 8.4%.

Loans
Loans outstanding as of March 31, 2024, totaled $4.0 billion. The loan portfolio decreased $16.3 million, or 0.4%, during first quarter 2024 compared to December 31, 2023. This decrease was driven by a $64.8 million decrease in real estate construction loans, a $15.0 million decrease in commercial real estate loans and a $0.2 million decrease in other loans. This decrease was slightly offset by a $55.3 million increase in residential real estate loans and a $7.9 million increase in commercial and industrial loans.

Loans outstanding as of March 31, 2024, reflected an increase of $85.2 million, or 2.2%, compared to loans outstanding of $3.9 billion on March 31, 2023. This growth was driven by a $79.9 million increase in residential real estate loans, a $54.0 million increase in commercial real estate loans, a $10.0 million increase in commercial and industrial loans, and a $0.5 million increase in other loans. This increase was slightly offset by a $58.2 million decrease in real estate construction loans and a $1.9 million decrease in consumer loans.

Deposits
Total deposits increased $212.5 million, or 3.7%, to $5.9 billion during first quarter 2024 compared to December 31, 2023, primarily due to a $148.4 million increase in money market accounts, a $58.4 million increase in demand deposits, a $8.9 million increase in interest-bearing checking accounts, and a $5.4 million increase in certificate of deposit accounts. The increase was partially offset by a $8.5 million decrease in savings accounts. Brokered certificates of deposit totaled $470.7 million on March 31, 2024, compared to $531.0 million on December 31, 2023. Noninterest-bearing demand accounts comprised 30.5% of all deposits on March 31, 2024, compared to 30.6% on December 31, 2023.

Total deposits of $5.9 billion on March 31, 2024, reflected an increase of $196.1 million, or 3.4%, compared to total deposits of $5.7 billion on March 31, 2023. This increase was due to a $532.8 million increase in certificate of deposit accounts and a $227.5 million increase in money market accounts. This increase was partially offset by a $264.3 million decrease in interest-bearing checking accounts, a $256.9 million decrease in demand deposits and a $43.0 million decrease in savings accounts. Brokered certificates of deposit totaled $470.7 million on March 31, 2024, compared to $371.7 million on March 31, 2023. Noninterest-bearing demand accounts comprised 30.5% of all deposits on March 31, 2024, compared to 36.1% on March 31, 2023.

Capital
The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of March 31, 2024, the Bank’s Tier 1 Leverage Ratio was 9.42%, Tier 1 Risk-Based Capital Ratio was 13.98%, and Total Risk-Based Capital Ratio was 15.13%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.05%, Tier 1 Risk-Based Capital Ratio was 13.41%, and Total Risk-Based Capital Ratio was 15.69% as of March 31, 2024.

Book value per share on March 31, 2024, was $4,368.81 per Class A common share and $29.13 per Class B common share, an increase of $44.91 per Class A common share and $0.30 per Class B common share from December 31, 2023.

Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights.

Dividends
Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150^th) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends.

During first quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On April 11, 2024, the Company declared cash dividends of $30.00 per Class A common share and $0.20 per Class B common share payable on April 29, 2024, to shareholders of record on April 22, 2024.

About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.6 billion, independent, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five-star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B non-voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB” on the OTCQX^® Best Market. Learn more at www.alpinebank.com.

*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.

Contacts:	Glen Jammaron	Eric A. Gardey
	President and Vice Chairman	Chief Financial Officer
	Alpine Banks of Colorado	Alpine Banks of Colorado
	2200 Grand Avenue	2200 Grand Avenue
	Glenwood Springs, CO 81601	Glenwood Springs, CO 81601
	(970) 384-3266	(970) 384-3257

A note about forward-looking statements
This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “continues,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our evaluation of macro-environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward- looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statement include, but are not limited to:

• The ability to attract new deposits and loans;
• Demand for financial services in our market areas;
• Competitive market-pricing factors;
• Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
• Effects of future economic, business and market conditions, including higher inflation;
• Adverse effects of public health events, such as the COVID-19 pandemic, including governmental and societal responses;
• Deterioration in economic conditions that could result in increased loan losses;
• Actions by competitors and other market participants that could have an adverse impact on expected performance;
• Risks associated with concentrations in real estate-related loans;
• Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
• Market interest rate volatility, including changes to the federal funds rate;
• Stability of funding sources and continued availability of borrowings;
• Geopolitical events, including acts of war, international hostilities and terrorist activities;
• Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
• Actions of government regulators, potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve Board;
• Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
• Any increases in FDIC assessments;
• Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
• The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
• Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
• The ability to recruit and retain key management and staff;
• The ability to raise capital or incur debt on reasonable terms; and
• Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.
  

There are many factors that could cause actual results to differ materially from those contemplated by forward-looking statements. Any forward-looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Key Financial Measures
The attached tables highlight the Company’s key financial measures for the periods indicated (unaudited).

Key Financial Measures 03/31/2024

Statement of Income 03/31/2024

Statement of Financial Condition 03/31/2024

Statement of Comprehensive Income 03/31/2024

FAQ

What was Alpine Banks of Colorado's net income for the first quarter of 2024?

Alpine Banks of Colorado reported a net income of $10.6 million for the first quarter of 2024.

How did basic earnings per Class A common share change in the first quarter of 2024 compared to the same period in 2023?

Basic earnings per Class A common share decreased by 3.9% in the first quarter of 2024 compared to the same period in 2023.

What was the total assets of Alpine Banks of Colorado as of March 31, 2024?

Total assets of Alpine Banks of Colorado were $6.59 billion as of March 31, 2024.

What are the capital ratios of Alpine Banks of Colorado as of March 31, 2024?

As of March 31, 2024, the Bank's Tier 1 Leverage Ratio was 9.42%, Tier 1 Risk-Based Capital Ratio was 13.98%, and Total Risk-Based Capital Ratio was 15.13%.