An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Alpine Banks of Colorado (OTCQX: ALPIB) reported a net income of $14.1 million for Q1 2021, with basic Class A and Class B earnings per share at $136.60 and $0.91, respectively. Key achievements included a 2.6% increase in book value per Class A share to $3,746.01 and a 10.1% growth in deposits, totaling $5.0 billion. Loans increased 3.5% to $3.3 billion, driven by commercial and residential lending. The bank remains well-capitalized with Tier 1 capital ratios above requirements. Dividends of $24.00 per Class A share were paid, reflecting solid financial performance.
Positive
Net income of $14.1 million for Q1 2021.
2.6% increase in book value per Class A share to $3,746.01.
10.1% increase in deposits to $5.0 billion.
3.5% increase in loan balances to $3.3 billion.
Well-capitalized status with strong Tier 1 capital ratios.
Negative
Noninterest income decreased by $1.2 million compared to Q4 2020.
Provision for loan losses increased by $1.7 million compared to Q4 2020.
GLENWOOD SPRINGS, Colo., April 27, 2021 (GLOBE NEWSWIRE) -- Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank, today announced results (unaudited) for the first quarter 2021. The Company reported net income of $14.1 million, or $136.60 per basic Class A common share, and $0.91 per basic Class B common share, for first quarter 2021.
First Quarter 2021 Achievements
Book Value per Class A share increased 2.6%, or $95.18 to $3,746.01 per share, versus fourth quarter 2020
Book Value per Class B share increased 2.6%, or $0.63 to $24.97 per share, versus fourth quarter 2020
Loan balances during first quarter 2021 increased 3.5% or $113.9 million, versus fourth quarter 2020
Deposit balances during first quarter 2021 increased 10.1% or $462.0 million, versus fourth quarter 2020
“The Alpine team delivered a strong first quarter led by positive trends in asset growth and asset quality,” said president and vice chairman Glen Jammaron. “We are pleased to have been able to help our customers and communities by participating in Round 2 of the Paycheck Protection Program loans. The PPP loans have been instrumental in our local businesses’ ability to weather the COVID-19 storm over the last 12 months. With increasing community vaccination levels and improving COVID-19 case trends, Alpine is hopeful that our businesses will be able to return to a near-normal operating environment in the not-too-distant future and all of our communities particularly those with nearby outdoor recreation will have a very busy summer.”
Net Income Net income for the first quarter 2021 and the fourth quarter 2020 was $14.1 million and $14.2 million, respectively. Interest income increased $2.5 million in first quarter 2021 compared to fourth quarter 2020, primarily due to an increase in loan and securities volume and an increase in loan yields, slightly offset by a decrease in securities yields. Loan yields were unusually high in the first quarter 2021 due to the booking of $6.0 million in Paycheck Protection Program (PPP) fees. Interest expense decreased $35,000 in the first quarter 2021 compared to the fourth quarter 2020 due to a decrease in interest paid on the Company’s subordinated notes issued in June 2020. Noninterest income decreased $1.2 million in first quarter 2021 compared to fourth quarter 2020—primarily due to a decrease in income generated by Mortgage Banking activities and other income—and decreases in service charges on deposit accounts and earnings on bank owned life insurance. Noninterest expense increased $54,000 in the first quarter of 2021, compared to the fourth quarter of 2020, primarily due to an increase in salaries and employee benefits, expenses related to Mortgage Banking activities and occupancy expense, slightly offset by decreases in furniture and fixture expense and other miscellaneous expenses. Provision for loan losses increased $1.7 million in the first quarter 2021 compared to the fourth quarter 2020 primarily due to management’s response to address the ongoing uncertainties and potential effects of COVID-19.
Net income for the three months ended March 31, 2021, and compared to 2020, was $14.1 million and $10.9 million, respectively. Interest income increased $5.0 million in the first three months of 2021 compared to the first three months of 2020 primarily due to an increase in volume in loans, securities and due from banks, slightly offset by decreased yields on loans, securities and due from banks. Interest expense decreased $80,000 in the first three months of 2021 compared to the first three months of 2020, primarily due to decreased interest rates on deposit accounts, slightly offset by an increase in volume and an increase in interest paid on the Company’s subordinated notes. Noninterest income increased $0.6 million in the first three months of 2021, compared to the first three months of 2020, primarily due to an increase in income generated by Mortgage Banking activities and other income, slightly offset by decreases in service charges on deposit accounts and earnings on life insurance. Noninterest expense decreased $0.3 million in the first three months of 2021, compared to the first three months of 2020, primarily due to a decrease in expenses generated by Mortgage Banking activities, furniture and fixtures and other expenses, slightly offset by an increase in salary and employee benefit expenses and occupancy expenses. Provision for loan losses increased $1.9 million in the first three months of 2021, compared to the first three months of 2020, primarily due to management’s response to address the ongoing uncertainties and potential effects of COVID-19.
Net interest margin increased from 3.35% to 3.43% from fourth quarter 2020 to first quarter 2021. Net interest margin for the first quarter 2021 was substantially influenced by PPP loan fee income of $6.0 million, as compared to PPP loan fee income of $2.5 million in the fourth quarter of 2020. As a result, the first quarter 2021 PPP loan portfolio yield was 11.43% compared to the fourth quarter 2020 PPP loan portfolio yield of 4.63%. Net interest margin for the first quarter 2021 net of the PPP loan influence was 3.06% compared to the fourth quarter 2020 net interest margin net of the PPP loan influence of 3.27%. Net interest margin for the three months ended March 31, 2021 and 2020 was 3.43% and 4.27%, respectively.
Assets As of March 31, 2021, total assets were $5.6 billion, an increase of 9.0% or $464.7 million from fourth quarter 2020. Total assets increased in the first quarter of 2021 from the fourth quarter 2020 due to organic loan growth, along with core deposit increases and a $65.1 million increase in PPP loans. Total assets grew 43.0% or $1.7 billion from March 31, 2020 to March 31, 2021. Alpine Bank’s Wealth Management Division* had assets under management of $1.09 billion on March 31, 2021, compared to $0.89 billion on March 31, 2020, an increase of 22.7%.
Loans Loans outstanding as of March 31, 2021 totaled $3.3 billion, and the loan portfolio increased $113.9 million, or 3.5% during the first quarter of 2021 compared to December 31, 2020. This growth was primarily driven by a $76.8 million increase in Commercial and Industrial loans, a $27.7 million increase in Commercial Real Estate loans and a $21.2 million increase in Residential Real Estate loans, primarily due to an increase in one- to four-family residential loans. The increase in Commercial and Industrial loans was primarily a result of an increase in Round 2 PPP loans in first quarter 2021. This growth was slightly offset by decreases in Real Estate Construction loans of $7.0 million, and Consumer loans of $2.4 million, during first quarter 2021 compared to December 31, 2020. Loans outstanding net of PPP loans as of March 31, 2021, reflected an increase of $48.8 million or 1.6% compared to loans outstanding net of PPP loans of $3.0 million on December 31, 2020.
Loans outstanding as of March 31, 2021 reflected an increase of $573.9 million, or 20.8%, compared to loans outstanding of $2.8 billion on March 31, 2020. This growth was primarily driven by a $282.2 million increase in Commercial and Industrial loans, a $198.4 million increase in Residential Real Estate loans, primarily due to an increase in one- to four-family residential loans, a $101.0 million increase in Commercial Real Estate loans and a $3.9 million increase in Consumer loans. The increase in Commercial and Industrial loans was primarily a result of the PPP loan program which began in April 2020. This year-over-year growth was slightly offset by a decrease in Real Estate Construction loans of $3.2 million. Loans outstanding net of PPP loans as of March 31, 2021, reflected an increase of $314.2 million or 11.4%, compared to loans outstanding net of PPP loans of $2.8 billion on March 31, 2020.
Deposits Total deposits increased $462.0 million or 10.1% to $5.0 billion, during first quarter 2021 compared to the fourth quarter 2020, primarily due to a $314.1 million increase in Demand accounts, a $74.8 million increase in Interest Checking accounts, a $71.1 million increase in Money Fund accounts, and a $9.8 million increase in Savings accounts. This was slightly offset by a $7.8 million decrease in Certificates of Deposit accounts. The first quarter 2021 deposit growth is partially reflective of PPP loan activity and a high amount of liquidity in the general market.
Total deposits of $5.0 billion on March 31, 2021 reflected an increase of $1.6 billion, or 46.7%, compared to total deposits of $3.4 billion on March 31, 2020. This increase was due to an $817.8 million increase in Demand deposits, a $459.5 million increase in Money Fund accounts, a $301.5 million increase in Interest Checking accounts and a $29.9 million increase in Savings accounts. This was slightly offset by a $4.1 million decrease in Certificate of Deposit accounts.
Capital The Company’s banking subsidiary, Alpine Bank (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, 2021, the Bank’s Tier 1 Leverage Ratio was 8.56%, Tier 1 Risk-Based Capital Ratio was 13.40% and Total Risk-Based Capital Ratio was 14.62%. On a consolidated level, the Company’s Tier 1 Leverage Ratio was 8.19%, Tier 1 Risk-Based Capital Ratio was 12.81% and Total Risk-Based Capital Ratio was 15.49% as of March 31, 2021.
Dividends During the first quarter 2021, Alpine paid cash dividends of $24.00 per Class A common share and $0.16 per Class B common share. The Class A common share cash dividend was $6.00 higher than the fourth quarter 2020 dividend of $18.00 per Class A common share. The Class B common share cash dividend was $0.04 higher than the fourth quarter 2020 dividend of $0.12 per Class B common share. On April 8, 2021, Alpine declared a dividend of $24.00 per Class A common share and $0.16 per Class B common share, payable on April 26, 2021. The dividend is unchanged from the dividend paid in the previous quarter.
COVID-19 Pandemic Response The Company continues to respond to the COVID-19 pandemic as circumstances change. All bank branches are currently open to customers. We had no branch closures due to positive COVID-19 tests in the first quarter 2021. Remote work for the majority of back-office personnel is expected to continue through at least the end of the second quarter of 2021.
In order to support our customer base, Alpine enacted a 90-day loan payment deferral program in late March 2020. Both principal and interest payments during the period were deferred to the end of the loan. As the 90-day deferral period came to an end, Alpine reviewed options to extend the deferral period for up to 180 days as provided for in regulatory guidance. Reviews for an additional 90-day extension for each borrower’s deferral period included an analysis of the borrower’s plan and ability to resume normal payments when the deferral period ends. As of June 30, 2020, $823.0 million of the loan portfolio (26.5%) was active in the loan deferral program. The majority of borrowers did not require a second 90-day deferral period. On December 31, 2020, only $29.3 million (0.9%) of the loan portfolio remained in a deferral status. As of March 31, 2021, $19.9 million (0.6%) of the loan portfolio remains on a COVID-19 deferral status.
The Company actively participated in Round 1 of the PPP loan program. As of March 31, 2021, Alpine had outstanding balances of $119.4 million in Round 1 PPP loans. We have entered into a contract with a third party technology provider to assist with the Round 1 PPP loan forgiveness process for our borrowers. Our web portal for processing Round 1 PPP forgiveness was activated in September 2020. Forgiveness activity began in fourth quarter 2020, and we have processed $190.7 million in Round 1 PPP forgiveness approvals from the SBA as of March 31, 2021. We currently anticipate that the majority of our remaining Round 1 PPP loans will be forgiven in the first half of 2021. The Company began actively participating in Round 2 of the PPP loan program in late January 2021. As of March 31, 2021, Alpine had issued 1,632 Round 2 PPP loans with a total outstanding balance of $146.6 million.
About Alpine Banks of Colorado Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $5.6 billion, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. With banking offices across Colorado, Alpine Bank employs more than 780 people and serves more than 160,000 customers with personal, business, wealth management, mortgage and electronic banking services. Alpine Bank has a 5-star rating for financial strength by BauerFinancial, Inc., the nation’s leading bank rating firm. The 5-star rating is BauerFinancial’s highest rating for financial institutions. Learn more at www.alpinebank.com. Shares of the Class B Nonvoting Common Stock of Alpine Banks of Colorado trade under the symbol “ALPIB" on the OTCQX® Best Market.
*Alpine Bank Wealth Management services are not FDIC insured, may lose value and are not guaranteed by the Bank.
Contacts:
Glen Jammaron
Eric 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,” “believes,” “estimates,” “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 or guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statement include:
The ability to attract new deposits and loans;
Demand for financial services in our market areas;
Competitive market-pricing factors;
The adverse effects of public health events, such as the current COVID-19 pandemic, including governmental and societal responses;
Statements regarding the expected impact of the stock split of our Class B common shares;
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 our expected performance;
Risks associated with concentrations in real estate-related loans;
Market interest rate volatility;
Stability of funding sources and continued availability of borrowings;
Risk associated with potential cyber threats;
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 speaks only as of the date on which it is made. 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 Click the following links for tables that highlight Alpine’s key financial measures for the quarter indicated:
