Alpine Banks of Colorado announces financial results for fourth quarter and year end 2024

Rhea-AI Summary

Alpine Banks of Colorado (ALPIB) reported Q4 2024 net income of $13.8 million, or $128.92 per Class A share and $0.86 per Class B share. Key highlights include a net interest margin increase to 3.18% in Q4 2024, up from 2.98% in Q3 2024.

The bank experienced positive growth in customer deposits, increasing by 7.9% during 2024, while reducing brokered deposits by over 50%. Total assets stood at $6.52 billion as of December 31, 2024, marking a 1.6% increase year-over-year. The loan portfolio showed modest growth of 0.7% in Q4 2024, reaching $4.0 billion.

The Alpine Bank Wealth Management division reported assets under management of $1.37 billion, representing a significant 19.0% increase from the previous year. The bank maintains its 'well capitalized' status with a Tier 1 Leverage Ratio of 9.75% and declared a cash dividend of $31.50 per Class A share and $0.21 per Class B share payable in January 2025.

Positive

• Net interest margin improved to 3.18% in Q4 2024 from 2.98% in Q3 2024
• Customer deposits grew 7.9% during 2024
• Assets under management increased 19.0% YoY to $1.37 billion
• Deposit interest expense decreased by over 10% in Q4 2024
• Maintains 'well capitalized' status with strong capital ratios

Negative

• Net income decreased YoY from $57.0M in 2023 to $49.7M in 2024
• Basic earnings per Class A share decreased 12.0% YoY
• Total assets decreased $53.7M (0.8%) in Q4 2024 compared to Q3
• Book value per share decreased by $46.96 for Class A shares in Q4

GLENWOOD SPRINGS, Colo., Jan. 30, 2025 (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 fourth quarter and year ended December 31, 2024. The Company reported net income of $13.8 million, or $128.92 per basic Class A common share and $0.86 per basic Class B common share, for fourth quarter 2024.

Highlights in fourth quarter 2024 and the year ended December 31, 2024, include:

• Basic earnings per Class A common share increased 1.4%, or $1.76, during fourth quarter 2024.
• Basic earnings per Class A common share decreased 12.0%, or $63.32, during the 12 months ended December 31, 2024.
• Basic earnings per Class B common share increased 1.4%, or $0.01, during fourth quarter 2024.
• Basic earnings per Class B common share increased 12.0%, or $0.42, during the 12 months ended December 31, 2024.
• Net interest margin for fourth quarter 2024 was 3.18%, compared to 2.98% in third quarter 2024, and 2.84% in fourth quarter 2023.
  

“The fourth quarter of 2024 continued a positive trend of growing customer-based deposits at a lower cost,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “During 2024, Alpine grew customer deposits by 7.9% while simultaneously reducing brokered deposits by over 50%. Deposit interest expense decreased by over 10% in fourth quarter 2024, leading the way to a 20-basis point improvement in our net interest margin from third quarter 2024 to fourth quarter 2024. The full team at Alpine looks forward to continued success in 2025.”

Net Income
Net income for fourth quarter 2024 and third quarter 2024 was $13.8 million and $13.6 million, respectively. Interest income increased $0.2 million in fourth quarter 2024 compared to third quarter 2024, primarily due to increases in yields and volumes in the securities portfolio, increased rates on due from banks and increased volume in the loan portfolio. These increases were slightly offset by decreased yields on the loan portfolio and decreased balances in due from banks. Interest expense decreased $2.8 million in fourth quarter 2024 compared to third quarter 2024, primarily due to decreased interest rates on the deposit portfolio and the Company’s trust preferred securities. Noninterest income decreased $0.5 million in fourth quarter 2024 compared to third quarter 2024, primarily due to decreases in other income partially offset by increases in earnings on life insurance. Noninterest expense increased $2.2 million in fourth quarter 2024 compared to third quarter 2024, due to increases in other expenses, salary and employee benefit expenses and furniture and fixture expenses slightly offset by decreases in occupancy expenses. A provision for loan losses of $1.5 million was recorded in fourth quarter 2024 compared to a $1.2 million provision recorded in third quarter 2024.

Net income for the twelve months ended December 31, 2024, and 2023, was $49.7 million and $57.0 million, respectively. Interest income increased $23.4 million in 2024 compared to 2023, primarily due to 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 $31.6 million in 2024 compared to 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 $4.0 million in 2024 compared to 2023, primarily due to increases in earnings on bank-owned life insurance, service charges on deposit accounts and other income. Noninterest expense increased $6.1 million in 2024 compared to 2023, due to increases in salary and employee benefit expenses and occupancy expenses. These increases were partially offset by decreases in furniture and fixture expenses and other expenses. Provision for loan losses decreased $1.5 million in 2024 compared to 2023 due to loan portfolio declines and a small volume of loan charge-offs.

Net interest margin increased from 2.98% to 3.18% from third quarter 2024 to fourth quarter 2024. Net interest margin for the twelve months ended December 31, 2024, and 2023, was 2.96% and 3.09%. respectively.

Assets
Total assets decreased $53.7 million, or 0.8%, to $6.52 billion as of December 31, 2024, compared to September 30, 2024, primarily due to decreased cash and due from banks and investment securities balances, partially offset by increased loans receivable. Total assets increased $105.4 million, or 1.6%, from December 31, 2023, to December 31, 2024. The Alpine Bank Wealth Management* division had assets under management of $1.37 billion on December 31, 2024, an increase of 19.0% compared to $1.15 billion on December 31, 2023.

Loans
Loans outstanding as of December 31, 2024, totaled $4.0 billion. The loan portfolio increased $28.9 million, or 0.7%, during fourth quarter 2024 compared to September 30, 2024. This increase was driven by a $30.5 million increase in residential real estate loans, a $22.2 million increase in commercial real estate loans, a $2.4 million increase in consumer loans and a $0.2 million increase in other loans, partially offset by a $20.4 million decrease in commercial and industrial loans and a $5.5 million decrease in real estate construction loans.

Loans outstanding as of December 31, 2024, reflected an increase of $13.6 million, or 0.3%, compared to loans outstanding of $4.0 billion on December 31, 2023. This increase was driven by a $56.7 million increase in residential real estate loans, a $26.1 million increase in commercial real estate loans, a $7.6 million increase in commercial and industrial loans, a $6.0 million increase in consumer loans and a $0.4 million increase in other loans partially offset by a $83.0 million decrease in real estate construction loans.

Deposits
Total deposits decreased $47.1 million, or 0.8%, to $5.8 billion during fourth quarter 2024 compared to September 30, 2024, primarily due to a $46.8 million decrease in demand deposits and a $92.6 million decrease in certificate of deposit accounts. This decrease was partially offset by a $58.9 million increase in money fund accounts, and a $34.2 million increase in interest-bearing checking accounts. Brokered certificates of deposit decreased 25.9% from $330.7 million on September 30, 2024, to $245.0 million on December 31, 2024. Noninterest-bearing demand accounts comprised 30.2% of all deposits on December 31, 2024, compared to 30.7% on September 30, 2024.

Total deposits of $5.8 billion on December 31, 2024, reflected an increase of $121.5 million, or 2.1%, compared to total deposits of $5.7 billion on December 31, 2023. This increase was due to a $321.9 million increase in money market accounts and an $11.1 million increase in demand deposits, partially offset by a $180.4 million decrease in certificate of deposit accounts, an $8.0 million decrease in interest-bearing checking accounts, and a $23.0 million decrease in savings accounts. Brokered certificates of deposit decreased 53.9% from $531.0 million on December 31, 2023, to $245.0 million on December 31, 2024. Noninterest-bearing demand accounts comprised 30.2% of all deposits on December 31, 2024, compared to 30.6% on December 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 December 31, 2024, the Bank’s Tier 1 Leverage Ratio was 9.75%, Tier 1 Risk-Based Capital Ratio was 14.22%, and Total Risk-Based Capital Ratio was 15.37%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.41%, Tier 1 Risk-Based Capital Ratio was 13.72%, and Total Risk-Based Capital Ratio was 15.98% as of December 31, 2024.

Book value per share on December 31, 2024, was $4,740.61 per Class A common share and $31.60 per Class B common share, a decrease of $46.96 per Class A common share and a decrease of $0.31 per Class B common share from September 30, 2024, respectively.

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 fourth quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On January 9, 2025, the Company declared cash dividends of $31.50 per Class A common share and $0.21 per Class B common share payable on January 27, 2025, to shareholders of record on January 20, 2025.

About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.5 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 President and Vice Chairman Alpine Banks of Colorado 2200 Grand Avenue Glenwood Springs, CO 81601 (970) 384-3266	Eric A. Gardey Chief Financial Officer Alpine Banks of Colorado 2200 Grand Avenue Glenwood Springs, CO 81601 (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,” “looks forward to,” “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, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
• 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).

Alpine Banks of Colorado Consolidated Financial Statements 12.31.2024

Contact:

Eric A. Gardey, Chief Financial Officer Alpine Banks of Colorado (970) 384-3257 ericgardey@alpinebank.com

FAQ

What was Alpine Banks (ALPIB) Q4 2024 net income?

Alpine Banks reported a net income of $13.8 million for Q4 2024, or $128.92 per Class A share and $0.86 per Class B share.

How much did ALPIB's customer deposits grow in 2024?

Alpine Banks' customer deposits grew by 7.9% during 2024, while simultaneously reducing brokered deposits by over 50%.

What was ALPIB's net interest margin in Q4 2024?

The net interest margin for Q4 2024 was 3.18%, compared to 2.98% in Q3 2024 and 2.84% in Q4 2023.

How much are ALPIB's total assets as of December 31, 2024?

Total assets were $6.52 billion as of December 31, 2024, representing a 1.6% increase from December 31, 2023.

What dividends did ALPIB declare for January 2025?

Alpine Banks declared cash dividends of $31.50 per Class A share and $0.21 per Class B share, payable on January 27, 2025.