Alpine Banks of Colorado announces financial results for third quarter 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 $11.7 million, or $108.86 per basic Class A common share, and $0.73 per basic Class B common share, for third quarter 2023.

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 to 3.15% in second quarter 2023, and 3.49% 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 $11.7 million and $14.6 million, respectively. Interest income increased $2.0 million in third quarter 2023 compared to second quarter 2023, primarily due to an increase in volume in the loan portfolio and balances due from banks along with increases in yields on the loan portfolio. This increase was slightly offset by decreases in volume in the securities portfolio and decreases in yield on the securities portfolio and the balances due from banks. Interest expense increased $5.6 million in third quarter 2023 compared to second quarter 2023, primarily due to increases in the costs on the Company’s trust preferred securities, other borrowings, and cost of deposits along with an increase in volume of deposits. This increase was partially offset by a decrease in volume of other borrowings. Noninterest income increased $0.7 million in third quarter 2023 compared to second quarter 2023, due to increases in service charges on deposit accounts and an increase in other income. This increase was slightly offset by a decrease in earnings on bank-owned life insurance. Noninterest expense increased $0.4 million in third quarter 2023 compared to second quarter 2023, due to increases in other expenses and occupancy expenses, slightly offset by decreases in salaries and employee benefit expenses and furniture and fixture expenses. A provision for loan losses of $0.3 million was recorded in third quarter 2023 compared to a provision for loan losses recorded in second quarter 2023 of $0.4 million.