Alpine Banks Colorado · OTC:ALPIB
Alpine Banks Colorado — Alpine Banks of Colorado — Investor Presentation (2024)
38 slides from Alpine Banks Colorado's investor presentation, Dec 4, 2024
Slide 1: 3rd Quarter 2024 Investor Presentation
3rd Quarter 2024 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements • This presentation 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,” “ex
Slide 3: Table of Contents
Table of Contents About Alpine Banks of Colorado………….........4 Key Differentiators…………………………………….16 Financial Information…………………………………26 3
Slide 4: Alpine Banks of Colorado
Alpine Banks of Colorado Alpine Banks of Colorado Headquarters Glenwood Springs, Colorado 4
Slide 5: Alpine Banks of Colorado Summary Information
Alpine Banks of Colorado Summary Information (unaudited) Founded 1973 Ticker ALPIB Total Assets $6.58 Billion Total Deposits $5.87 Billion Gross Loans $4.04 Billion Employees 837 Locations 39 ROA 0.73% ROE 10.03% Source: Bank holding company regulatory report for the quarter ended 9/30/24 5
Slide 6: Financial Ratios for the Quarter ended 9/30/24
Financial Ratios for the Quarter ended 9/30/24 (unaudited) Net Income Growth -21.97% Annualized Deposit Growth 3.95% Annualized Loan Growth -0.44% Efficiency Ratio 74.73% Net Interest Margin (TE) 3.01% NPA's to Total Assets 0.42% Total Risk Based Capital 15.85% Source: Bank holding company regulator
Slide 7: Stock Information as of 9/30/24 and Employee Ownership
Alpine Banks of Colorado Stock Information as of 9/30/24 • Class B Non-Voting Common Stock – Traded on OTCQX® Best Market – Ticker: ALPIB – 8,205,218 shares outstanding – 150 for 1 stock split occurred 12/1/20 – Dividends set at 1/150th of dividends on Class A Voting Common Stock – 1,192,983 shares
Slide 8: Vision, Mission and Values
Vision, Mission and Values Vision “Alpine Bank will be the preferred financial services provider for individuals and businesses in the communities we serve in Colorado.” Mission “To help our customers, employees, shareholders and community members achieve their dreams.” Values Independence Integrity
Slide 9: Executive Leadership
Executive Leadership Name Title Tenure at Alpine J. Robert Young Founder and Chairman 51 Years Glen Jammaron President and Vice Chairman 39 Years Glenn Davis Chief Development Officer 36 Years Eric A. Gardey Chief Financial Officer 35 Years Jay Rickstrew Chief Retail Officer 30 Years Andrew Karow Ch
Slide 10: Board of Directors
Board of Directors Raymond T. Baker Peter N. Guy Owner, Real Estate Management Firm Investments Stephen Briggs Glen Jammaron Former Banking Executive Vice Chairman and President Linda Childears Andrew Karow Retired President & CEO – Daniels Fund Chief Operations Officer Glenn Davis Thomas H. Kenning
Slide 11: Branch Network
TNC L_L_——_ Branch Network Fort Coins EY a) + Steamboat Springs -Boulder ; «Glenwood Springs d + Edward 3 Soleo plete ra) ‘ vain FCO Union Station A QB QIN ey iim + Cherry Creek 4 New Castle stage EY EY +DenverTech Center EQ-Bottiementesa EY © wt sAvn —-€Q ED - Brecienridge + Aurora LPO P +Carbondal
Slide 12: Community Involvement
Community Involvement • Loyalty Debit Card Program – Debit card program benefits local organizations supporting the community – Ten cents per transaction donated to the program – Over $2.3 million donated to the program in 2023 • Other Donations – $4.2 million donated in 2023 above and beyond the Lo
Slide 13: 50 Years of Philanthropy
TNC L_L_——_ 50 Years of Philanthropy
Slide 14: Environmental Initiatives
Environmental Initiatives • ISO Certification – International Organization for Standardization (ISO) 14001 certification for environmental management since 2006 • Green Team – Grassroots employee-driven initiative started in 2005 to improve environmental practices – The bank was awarded at the Gold-
Slide 15: Focus on Customer Service
Focus on Customer Service • CARE – Connect, Ask Questions, Recommend, Exceed – Our commitment to deliver exceptional service and solutions that enhance our customers’ experience • Net Promoter Score – Net Promoter Score measures percentage of customers that would recommend a brand – Alpine Bank’s Ne
Slide 16: Key Differentiators
Key Differentiators • Core Deposit Base • Diversified Loan Portfolio • De Novo Market Expansion • Talent Development • Operational Efficiency • Noninterest Income 16
Slide 17: Core Deposit Base
Core Deposit Base Other Certificates of Deposit Cost of Interest-Bearing Deposits 3% 3.00% 2.59% Brokered CD's 2.50% 5% 1.76% 2.00% 1.50% Certificates of 1.00% Deosit >= 0.50% 0.15% 0.09% 0.09% 0.04% $100,000 9% Non-Interest Bearing 0.00% Checking 2019 2020 2021 2022 2023 Sep-24 31% Alpine Banks of
Slide 18: Colorado Deposit Market Share
Colorado Deposit Market Share Statewide (as of June 30, 2024) State Colorado Deposits Market Name (Headquarters) Offices ($000) Share 1 Wells Fargo Bank, N.A. SD 120 33,985,651 18.58% 2 Firstbank CO 84 22,271,908 12.17% 3 JPMorgan Chase Bank, N.A. OH 108 22,254,319 12.16% 4 U.S. Bank N.A. OH 104 20,
Slide 19: Diversified Loan Portfolio
Diversified Loan Portfolio Yield on Loans and Leases (TE) 7.50% 7.00% 6.50% 5.88% 6.00% 5.53% 5.54% 5.50% 4.79% 4.71% Nonfarm 5.00% 4.64% nonresidential 4.50% 30% 4.00% 2019 2020 2021 2022 2023 Sep-24 1 - 4 Family 45% Alpine Banks of Colorado Peer Loans Held for Resale • 45% of loans are 1 to 4 0% F
Slide 20: Loan Portfolio Segmentation
Loan Portfolio Segmentation COMMERCIAL REAL ESTATE Other Hotel/Motel Health Care 1 - 4 FAMILY REAL ESTATE Industrial Other Warehouse Home Equity Retail Loan Office CONSTRUCTION AND LAND Home Equity In House DEVELOPMENT Line Mortgage Product Land Development End User Land Fractional Loans Unit Specul
Slide 21: Commercial and Industrial (C & I) Lending Expansion
Commercial and Industrial (C & I) Lending Expansion • We have been building out a C & I Lending Department • We believe there are strong opportunities in the Front Range market for C&I lending • C&I lending employees come from a combination of outside hires and our existing lenders • We have been bu
Slide 22: De Novo Market Expansion
De Novo Market Expansion • Entered the Front Range market in 2014 with our Union Station Branch • We now have 7 branch locations in Front Range of Colorado • Colorado Springs and Fort Collins branches opened in the 4th Quarter 2022 • Branch in Aurora, Colorado opened on October 15, 2024 • Proactivel
Slide 23: Talent Development
Talent Development • Officer Trainees – 50-year history of hiring and training our own officer staff – One-year training program for recent college graduates – 8 Officer Trainees hired in 2021, 13 hired in 2022 and 15 in 2023 • Leadership Development – In-house, comprehensive Leadership Training Pro
Slide 24: Operational Efficiency
Operational Efficiency Efficiency Ratio 80.00% • Efficiency Ratio has 74.73% 75.00% 69.94% 70.00% 65.00% 64.70% 64.39% 63.92% 61.00% been negatively impacted by lowered 60.00% 55.00% NIM 2019 2020 2021 2022 2023 Sep-24 Alpine Banks of Colorado Peer Average Assets Per Employee (in Millions) $7.68 $7.
Slide 25: Noninterest Income
Noninterest Income • Wealth Management – 26.5 employees working in Wealth Management as of 9/30/24 – Assets under management of $1.34 billion as of 9/30/24 – Revenue for the year ended 12/31/21 was $4,848,000 – Revenue for the year ended 12/31/22 was $4,584,000 – Revenue for the year ended 12/31/23
Slide 26: Financial Information
Financial Information Alpine Bank, Fort Collins Alpine Bank, Colorado Springs 26
Slide 27: Shareholder Returns
Shareholder Returns Class B Shares Earnings Per Share $5.00 $3.86 $4.64 • Historically increasing dividends prior to $4.00 $3.69 $3.51 $3.28 $3.00 COVID $2.23 $2.00 $1.00 $- • October 2024 dividend held steady at $0.20 per 2019 2020 2021 2022 2023 Sep-24 Dividends Per Share $0.90 $0.80 $0.77 $0.72 $
Slide 28: Tangible Book Value
Tangible Book Value Class B Shares Tangible Book Value Per Share $35.00 $30.82 $30.00 $23.20 $26.01 $24.86 $27.74 • 9.3% CAGR in Tangible Book $25.00 $20.00 $20.69 Value Per Share in the period $15.00 2019 to 2023 $10.00 • July 2022 capital raise was $5.00 accretive to Tangible Book Value $- 2019 20
Slide 29: Trading Volume
Trading Volume Monthly Trading Volume in Shares Monthly Trading Volume in Dollars 140,000 $4,000,000 $3,500,000 120,000 $3,000,000 100,000 $2,500,000 80,000 $2,000,000 60,000 $1,500,000 40,000 $1,000,000 $500,000 20,000 $- - Nov-19 Nov-20 Nov-21 Nov-22 Nov-23 May-19 May-20 May-21 May-22 May-23 May-2
Slide 30: Earnings Growth History
Earnings Growth History Return on Assets (ROA) 2.00% 1.55% • Historically 1.50% 1.13% 1.03% 1.16% outperformed peer group in both ROA and 0.87% 1.00% 0.73% ROE 0.50% 0.00% • ROA negatively 2019 2020 2021 2022 2023 Sep-24 Alpine Banks of Colorado Peer Return on Equity (ROE) impacted by NIM 20.00% 18.
Slide 31: Net Income 5 Year Growth
Net Income 5 Year Growth $80,000 $350,000 $70,000 $300,000 $60,000 $250,000 5 Year Cumulative Earnings $50,000 YTD Earnings (000) $200,000 $40,000 YTD Earnings 5 yr. Cumulative Earnings $150,000 $30,000 $100,000 $20,000 $50,000 $10,000 $0 $0 2019 2020 2021 2022 2023 Sep-24 ($000) Information as of D
Slide 32: Net Interest Margin (TE)
Net Interest Margin (TE) Net Interest Margin (TE) 5.00% 4.59% 4.50% 4.00% 3.84% • Net Interest Margin (NIM) declined as 3.45% 3.50% 3.17% 3.21% 3.01% general market rates fell 3.00% 2.50% 2019 2020 2021 Alpine Banks of Colorado 2022 Peer 2023 Sep-24 during 2019-2021 Annualized Net Interest Income pe
Slide 33: 10 Year Growth Trends
10 Year Growth Trends $7,000,000 $6,000,000 Assets $5,000,000 Deposits $4,000,000 Loans $3,000,000 $2,000,000 $1,000,000 $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Sep-24 ($000) Information as of December 31 for the year indicated, except 9/30/24 Source: Bank holding company regulatory rep
Slide 34: Deposit and Loan Growth History
Deposit and Loan Growth History Deposit Growth 40.00% 36.31% • Deposits as of 9/30/24 35.00% 30.00% 25.00% 22.43% 20.00% 15.00% include $330.7 million 10.00% 5.00% 2.72% -1.59% 3.29% 3.95% in brokered CD’s 0.00% -5.00% 2019 2020 2021 2022 2023 Sep-24 • 11.7% CAGR in Deposits 25.00% Loan Growth and 1
Slide 35: Capital Ratios
Capital Ratios Regulatory Capital Ratios 18.00% • Capital levels in excess 15.85% 16.00% 13.59% 14.00% 12.09% of regulatory minimums 12.00% 10.00% 9.23% 10.00% 8.00% 8.00% 6.50% 6.00% 5.00% 4.00% 2.00% • Increase in capital levels with slower asset 0.00% Leverage Capital Common Equity Tier Tier 1 Ri
Slide 36: Asset Quality
Asset Quality Allowance for Loan and Lease Losses (ALLL) Percentage • ALLL 0.05% lower than peer group at 1.50% 1.24% 12/31/23 1.14% 1.10% 1.11% 1.10% 1.00% 0.97% • Nonperforming assets at 0.42% as of 9/30/24 related primarily to OREO 0.50% property 0.00% • Net loan charge-off ratio of 0.10% for the
Slide 37: In Summary
In Summary • A unique culture and brand identity built around community and employee involvement creates our competitive advantage and is highlighted by : – Cost of interest-bearing deposits of 2.59% for nine months ended 9/30/24. Still an industry leader – Exceptional customer loyalty represented b
Slide 38: Contact Information
Contact Information Glen Jammaron President & Vice Chairman 970-384-3266 glenjammaron@alpinebank.com Eric Gardey Chief Financial Officer 970-384-3257 ericgardey@alpinebank.com 38
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