Alpine Banks of Colorado announces financial results for third quarter 2023
- Alpine Banks of Colorado reported net income of $11.7 million for Q3 2023.
- Basic earnings per Class A common share decreased by 19.0% in Q3 2023.
- Basic earnings per Class B common share decreased by 19.0% in Q3 2023.
- Net interest margin for Q3 2023 was 2.87%, compared to 3.15% in Q2 2023.
- Total assets decreased by $36.9 million to $6.48 billion.
- Total deposits increased by $60.8 million to $5.8 billion.
- Basic earnings per Class A common share decreased by 16.2% in the last 12 months.
- Basic earnings per Class B common share decreased by 16.1% in the last 12 months.
- Net interest margin decreased from 3.15% to 2.87% from Q2 2023 to Q3 2023.
GLENWOOD SPRINGS, Colo., Oct. 31, 2023 (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 third quarter ended September 30, 2023. The Company reported net income of
Highlights in third quarter 2023 include:
- Basic earnings per Class A common share decreased
19.0% , or$25.45 , during third quarter 2023. - Basic earnings per Class A common share decreased
16.2% , or$81.88 during the last 12 months ended September 30, 2023. - Basic earnings per Class B common share decreased
19.0% , or$0.17 , during third quarter 2023. - Basic earnings per Class B common share decreased
16.1% , or$0.54 during the last 12 months ended September 30, 2023. - Net interest margin for third quarter 2023 was
2.87% , compared to3.15% in second quarter 2023, and3.49% in third quarter 2022.
“The current economic environment brings challenges to both the banking industry and our communities. Alpine has taken a back-to-basics approach, refocusing our team on core deposit growth and relationship banking. An indication of the strength of this strategy was the reduction in wholesale funding during the third quarter,” said Glen Jammaron, President and Vice Chairman. “Interest rates paid by the Bank on deposits stabilized during the third quarter 2023. However, migration of customer deposits from non and low interest-bearing accounts to high yield accounts continues to pressure the Bank’s net interest margin. As a true community bank, Alpine is a reflection of our communities. Working together we will thrive no matter the economic conditions.”
Net Income
Net income for third quarter 2023 and second quarter 2023 was
Net income for the nine months ended September 30, 2023, and September 30, 2022, was
Net interest margin decreased from
Assets
Total assets decreased
Loans
Loans outstanding as of September 30, 2023, totaled
Loans outstanding as of September 30, 2023, reflected an increase of
Effective January 1, 2023, the Bank adopted the Financial Accounting Standards Board’s (FASB) Accounting Standard Update (ASU) 2016-13, commonly known as the current expected credit loss (CECL) model. Upon adoption, the Bank recorded no change in the beginning allowance for credit losses - loans. However, the adoption of ASU 2016-13 did result in an
Deposits
Total deposits increased
Total deposits of
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 September 30, 2023, the Bank’s Tier 1 Leverage Ratio was
Book value per share on September 30, 2023, was
Dividends
During third quarter 2023, the Company paid cash dividends of
About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a
*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 our 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 the recent and potential future interest rate hikes 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 09/30/2023
Statement of Income 09/30/2023
Statement of Financial Condition 09/30/2023
Statement of Comprehensive Income 09/30/2023
FAQ
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