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Alpine Banks of Colorado (OTCQX: ALPIB) reported a net income of $12.7 million for Q1 2022, resulting in earnings of $123.97 per Class A share and $0.83 per Class B share. Key achievements include a 3.4% annual increase in book value per Class A share to $3,874.01, a 1.2% organic loan growth in Q1 totaling $40.6 million, and a 3.5% core deposit growth of $187.4 million. However, net interest margin decreased to 2.87% from 3.43% year-over-year, and total assets dipped 0.6% from the previous quarter to $6.2 billion due to a strategic reduction of reciprocal deposits.
Positive
Net income of $12.7 million in Q1 2022.
Book value per Class A share rose 3.4% to $3,874.01.
Organic loan growth of 1.2% ($40.6 million) in Q1 2022.
Core deposits increased by 3.5% ($187.4 million) in Q1 2022.
Negative
Net interest margin decreased from 3.43% to 2.87% year-over-year.
Total assets decreased by 0.6% from the previous quarter.
GLENWOOD SPRINGS, Colo., April 26, 2022 (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 first quarter ended March 31, 2022. The Company reported net income of $12.7 million, or $123.97 per basic Class A common share and $0.83 per basic Class B common share, for first quarter 2022.
Achievements in the first quarter 2022, and the past 12 months, include:
Book value per Class A common share increased 3.4%, or $128.00 to $3,874.01 per share, versus first quarter 2021,
Book value per Class B common share increased 3.4%, or $0.85 to $25.83 per share, versus first quarter 2021,
Organic loan growth during first quarter 2022 was 1.2%, or $40.6 million,
Organic loan growth during the last 12 months was 9.6%, or $296.2 million,
Core deposit growth during first quarter 2022 was 3.5%, or $187.4 million, and
Core deposit growth during the last 12 months was 14.6%, or $710.6 million.
“Alpine completed a successful first quarter of 2022,” said Alpine Banks of Colorado President and Vice Chairman, Glen Jammaron. “Although rapidly rising interest rates negatively impacted our investment portfolio, our core banking business performed well. Over the last year, Alpine has successfully invested excess cash balances into our core lending business and investment portfolio. We currently anticipate a robust and active remainder of 2022, highlighted by bringing the communities of Fort Collins and Colorado Springs into the Alpine Bank family.”
Net income Net income for first quarter 2022 and fourth quarter 2021 was $12.7 million and $13.6 million, respectively. Interest income decreased $0.5 million in first quarter 2022 compared to fourth quarter 2021, primarily due to a decrease in yields on the loan portfolio and balances due from banks, and a decrease in volume in balances due from banks. This decrease was slightly offset by an increase in volume in the loan and securities portfolios, and an increase in yield on the securities portfolio. Interest expense increased $11,000 in first quarter 2022 compared to fourth quarter 2021, primarily due to an increase in yield on the Company’s trust preferred securities and an increase in volume in deposits, slightly offset by a decrease in yield on deposits. Noninterest income decreased $4.1 million in first quarter 2022 compared to fourth quarter 2021, primarily due to a $3.2 million unrealized loss on the Bank’s equity securities portfolio, a decrease in service charges on deposit accounts and a decrease in earnings on bank-owned life insurance. The Bank’s equity security portfolio primarily consists of an investment in the Transwestern Institutional Short Duration Government Bond Fund. Noninterest expense decreased $3.1 million in first quarter 2022 compared to fourth quarter 2021, due to decreases in other expenses, salaries and employee benefits, and furniture and fixture expense, slightly offset by an increase in occupancy expense. No provision for loan losses was recorded in first quarter 2022 or fourth quarter 2021, primarily due to asset quality improvement during the period and continued improvements in the economic environment.
Net income for the three months ended March 31, 2022 and March 31, 2021, was $12.7 million and $14.1 million, respectively. Interest income decreased $0.5 million in the first three months of 2022 compared to the first three months of 2021, primarily due to a decrease in yields on the loan and securities portfolios and a decrease in volume in balances due from banks. This was slightly offset by an increase in volume in the securities and loan portfolios and an increase in yield on balances due from banks. Interest expense decreased $95,000 in the first three months of 2022 compared to the first three months of 2021, primarily due to a decrease in yield on deposits. This was slightly offset by an increase in volume in deposits and an increase in yield on the Company’s trust preferred securities. Noninterest income decreased $4.2 million in the first three months of 2022 compared to the first three months of 2021, primarily due to unrealized losses on the Bank’s equity securities portfolio, slightly offset by increases in service charges on deposit accounts and earnings on life insurance. Noninterest expense increased $1.6 million in the first three months of 2022 compared to the first three months of 2021, due to an increase in other expenses, salary and employee benefit expenses, furniture and fixtures expenses, and occupancy expenses. Provision for loan losses decreased $4.1 million in the first three months of 2022 compared to the first three months of 2021, primarily due to asset quality improvement during the period and continued improvements in the economic environment.
Net interest margin decreased from 2.90% to 2.87% from fourth quarter 2021 to first quarter 2022. Net interest margin for first quarter 2022 net of the Paycheck Protection Program (“PPP”) loan influence was 2.85% compared to fourth quarter 2021 net interest margin net of the PPP loan influence of 2.82%. Net interest margin for the three months ended March 31, 2022 and March 31, 2021, was 2.87% and 3.43%, respectively.
Assets As of March 31, 2022, total assets were $6.2 billion, a decrease of 0.6% or $34.6 million from fourth quarter 2021. Total assets decreased in first quarter 2022 from fourth quarter 2021 primarily due to a strategic reduction of reciprocal deposits. This decrease was slightly offset by organic loan growth, strategic growth in the securities portfolio and core deposit increases. Total assets grew 9.6%, or $541.1 million, from March 31, 2021 to March 31, 2022. The Alpine Bank Wealth Management* division had assets under management of $1.14 billion on March 31, 2022, compared to $1.09 billion on March 31, 2021, an increase of 4.5%.
Loans Loans outstanding as of March 31, 2022 totaled $3.4 billion. The loan portfolio increased $17.6 million or 0.5% during first quarter 2022 compared to December 31, 2021. This increase was driven by a $33.8 million increase in commercial real estate loans and a $24.3 million increase in real estate construction loans. This increase was slightly offset by a decrease in commercial and industrial loans of $23.0 million, a decrease in residential real estate loans of $17.6 million, a decrease in other loans of $0.3 million, and a decrease in consumer loans of $23,000 during first quarter 2022 compared to December 31, 2021. The decrease in commercial and industrial loans includes $23.0 million in PPP loan forgiveness pay-downs processed in first quarter 2022. Loans outstanding net of PPP loans as of March 31, 2022 reflected an increase of $40.6 million, or 1.2%, compared to loans outstanding net of PPP loans of $3.3 billion on December 31, 2021.
Loans outstanding as of March 31, 2022 reflected an increase of $70.7 million, or 2.1%, compared to loans outstanding of $3.3 billion on March 31, 2021. This growth was driven by a $106.7 million increase in commercial real estate loans, a $64.8 million increase in real estate construction loans, a $47.8 million increase in residential real estate loans, and a $0.5 million increase in other loans. This year-over-year growth was slightly offset by a decrease in commercial and industrial loans of $148.0 million and a decrease in consumer loans of $4.8 million. The decrease in commercial and industrial loans includes $225.5 million in PPP loan forgiveness pay-downs. Loans outstanding net of PPP loans as of March 31, 2022, reflected an increase of $296.2 million, or 9.6%, compared to loans outstanding net of PPP loans of $3.1 billion on March 31, 2021.
Deposits Total deposits decreased $9.1 million, or 0.2%, to $5.6 billion during first quarter 2022 compared to December 31, 2021, primarily due to a $149.0 million decrease in money fund accounts and a $1.8 million decrease in certificate of deposit accounts. This decrease was slightly offset by a $116.3 million increase in demand accounts, a $22.0 million increase in interest checking accounts, and a $3.4 million increase in savings accounts. First quarter 2022 reduction in money funds accounts is mainly due to a strategic reduction of reciprocal deposits; however, deposit growth throughout the remainder of the portfolio is reflective of a high amount of liquidity in the general market.
Total deposits of $5.6 billion on March 31, 2022 reflected an increase of $556.2 million or 11.0% compared to total deposits of $5.0 billion on March 31, 2021. This increase was due to a $295.4 million increase in demand deposits, a $154.8 million increase in interest checking accounts, a $109.3 million increase in money fund accounts, and an $18.2 million increase in savings accounts, slightly offset by a $21.5 million decrease in certificate of deposit accounts.
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, 2022, the Bank’s Tier 1 Leverage Ratio was 7.98%, Tier 1 Risk-Based Capital Ratio was 12.62% and Total Risk-Based Capital Ratio was 13.68%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 7.65%, Tier 1 Risk-Based Capital Ratio was 12.09% and Total Risk-Based Capital Ratio was 14.40% as of March 31, 2022.
Capital, including book value per share, during first quarter 2022 was negatively impacted by a $30.3 million accumulated other comprehensive loss, related to our available for sale investment portfolio. Excluding the accumulated other comprehensive loss, book value per share on March 31, 2022 would have increased $295.69 per Class A common share and $1.97 per Class B common share.
Dividends During first quarter 2022, Alpine paid cash dividends of $27.00 per Class A common share and $0.18 per Class B common share. On April 14, 2022, Alpine declared a dividend of $27.00 per Class A common share and $0.18 per Class B common share, payable on May 2, 2022. The second quarter 2022 dividend is unchanged from the dividend paid in the first quarter 2022.
About Alpine Banks of Colorado Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.2 billion, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. With banking offices across Colorado, Alpine Bank employs more than 800 people and serves more than 160,000 customers with personal, business, wealth management*, mortgage and electronic banking services. 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 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,” “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 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 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 The tables in the links below highlight Alpine’s key financial measures for the periods indicated (unaudited).
