Alpine Banks Colorado · OTC:ALPIB
Alpine Banks Colorado — Alpine Banks of Colorado — Investor Presentation (2023)
38 slides from Alpine Banks Colorado's investor presentation, Mar 13, 2023
Slide 1: Fourth Quarter 2022 Investor Presentation
Fourth Quarter 2022 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 $6.32 Billion Total Deposits $5.52 Billion Gross Loans $3.91 Billion Employees 827 Locations 39 ROA 1.16% ROE 17.78% Source: Bank holding company regulatory report for the quarter ended 12/31/22 5
Slide 6: Financial Ratios for the Quarter ended 12/31/22
Financial Ratios for the Quarter ended 12/31/22 (unaudited) Net Income Growth 22.98% Annualized Deposit Growth ‐1.59% Annualized Loan Growth 14.67% Efficiency Ratio 61.00% Net Interest Margin (TE) 3.46% NPA's to Total Assets 0.06% Total Risk Based Capital 14.57% Source: Bank holding company regulato
Slide 7: Stock Information as of 12/31/22 and Employee Ownership
Alpine Banks of Colorado Stock Information as of 12/31/22 • Class B Non‐Voting Common Stock – Traded on OTCQX® Best Market – Ticker: ALPIB – 8,509,432 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 49 Years Glen Jammaron President and Vice Chairman 37 Years Glenn Davis Chief Development Officer 34 Years Eric A. Gardey Chief Financial Officer 33 Years Jay Rickstrew Chief Retail Officer 28 Years Andrew Karow Ch
Slide 10: Board of Directors
Board of Directors Raymond T. Baker Glen Jammaron Owner, Real Estate Management Firm Vice Chairman and President Stephen Briggs Thomas H. Kenning Former Banking Executive Chief Administration Officer Linda Childears Stan Kornasiewicz Retired President & CEO – Daniels Fund Investment Consultant John
Slide 11: Branch Network
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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 – Nearly $2.1 million donated to the program in 2022 • Other Donations – $3.3 million donated in 2022 above and beyond the
Slide 13: 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 • Renewable Energy – All electricit
Slide 14: 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 15: Employee Volunteers in Action
Employee Volunteers in Action 15
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 Certificates of Cost of Interest‐Bearing Deposits Deosit >= Deposit Brokered CD's 1.20% $100,000 1% 1% 1.00% 2% 0.80% 0.60% 0.40% 0.10% 0.15% 0.09% 0.09% 0.20% 0.08% 0.04% 0.00% 2017 2018 2019 2020 2021 2022 Money Market Alpine Banks of Colorado Peer Non‐Inter
Slide 18: Colorado Deposit Market Share
Colorado Deposit Market Share Statewide (as of June 30, 2022) State Colorado Deposits Market Name (Headquarters) Offices ($000) Share 1 Wells Fargo Bank, N.A. SD 131 41,808,963 20.37% 2 JPMorgan Chase Bank, N.A. OH 116 26,142,890 12.74% 3 Firstbank CO 85 24,890,395 12.12% 4 U.S. Bank N.A. OH 108 22,
Slide 19: Diversified Loan Portfolio
Diversified Loan Portfolio Yield on Loans and Leases (TE) 6.00% 5.53% 5.50% 5.32% 5.01% 5.00% 4.79% 4.71% 4.64% 4.50% Nonfarm nonresidential 4.00% 29% 2017 2018 2019 2020 2021 2022 1 ‐ 4 Family Alpine Banks of Colorado Peer Loans 44% Held for Resale 0% • 44% of loans are 1 to 4 Farmland 1% Family Mu
Slide 20: Loan Portfolio Segmentation
Loan Portfolio Segmentation COMMERCIAL REAL ESTATE Hotel/Motel Other Health Care 1 ‐ 4 FAMILY REAL ESTATE Industrial Other Retail Warehouse Home Equity Loan Office In House CONSTRUCTION AND LAND Home Equity Mortgage Line Product DEVELOPMENT Land End User Land Development Loans Fractional Speculative
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 6 locations in Front Range of Colorado • Colorado Springs and Fort Collins branches have opened in the 4th Quarter 2022 • Proactively adding to the lending staff within our current footprint
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 2020, 8 hired in 2021 and 13 in 2022 • Leadership Development – In‐house, comprehensive Leadership Training Prog
Slide 24: Operational Efficiency
Operational Efficiency Efficiency Ratio • Efficiency Ratio has 80.00% 75.00% 70.00% 65.00% 65.32% 63.07% 64.70% 64.39% 63.92% 61.00% improved during the 60.00% 55.00% rising interest rate 2017 2018 2019 2020 2021 2022 Alpine Banks of Colorado Peer environment Average Assets Per Employee (in Millions
Slide 25: Noninterest Income
Noninterest Income • Wealth Management – 27.5 employees working in Wealth Management as of 12/31/22 – Added two relationship managers and a fully staffed office in Denver in August 2019 – Assets under management of $1.101 billion as of 12/31/22, down from $1.153 billion as of 12/31/21 – Revenue for
Slide 26: Financial Information
Financial Information Alpine Bank, Union Station Alpine Bank, Boulder 26
Slide 27: Shareholder Returns
Shareholder Returns Class B Shares Earnings Per Share $5.00 $4.50 $3.86 $4.64 • 17.0% Cumulative Average $4.00 $3.50 $3.47 $3.69 $3.28 Growth Rate (CAGR) in $3.00 $2.50 $2.12 Earnings Per Share for the $2.00 $1.50 2018 to 2022 period $1.00 $0.50 • Historically increasing $‐ 2017 2018 2019 2020 2021
Slide 28: Tangible Book Value
Tangible Book Value Class B Shares Tangible Book Value Per Share $30.00 $26.01 $24.86 $25.00 $23.20 $20.00 $17.71 $20.69 • 10.4% CAGR in Tangible Book $15.00 $15.16 Value Per Share in the period $10.00 2018 to 2022 $5.00 • July capital raise was accretive $‐ to Tangible Book Value 2017 2018 2019 202
Slide 29: Trading Volume
Trading Volume Monthly Trading Volume in Shares Monthly Trading Volume in Dollars 80,000 $2,500,000 70,000 $2,000,000 60,000 50,000 $1,500,000 40,000 $1,000,000 30,000 20,000 $500,000 10,000 ‐ $‐ May‐19 Jul‐19 Sep‐19 Nov‐19 Mar‐20 May‐20 Jul‐20 Sep‐20 Nov‐20 Mar‐21 May‐21 Jul‐21 Sep‐21 Nov‐21 Mar‐22
Slide 30: Earnings Growth History
Earnings Growth History Return on Assets (ROA) 2.00% 1.54% 1.55% • Historically outperformed 1.50% 1.00% 1.03% 1.13% 1.03% 1.16% peer group in both ROA 0.50% and ROE 0.00% 2017 2018 2019 2020 2021 2022 • ROA negatively impacted Alpine Banks of Colorado Peer by $5.6 million securities Return on Equit
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 2018 2019 2020 2021 2022 ($000) Information as of December
Slide 32: Net Interest Margin (TE)
Net Interest Margin (TE) Net Interest Margin (TE) 5.00% 4.59% 4.31% 4.40% 4.50% • Net Interest Margin 3.84% 4.00% 3.46% 3.50% 3.17% 3.00% (NIM) declined as 2.50% 2017 2018 2019 2020 2021 2022 general market rates fell Alpine Banks of Colorado Peer • NIM is responding Annualized Net Interest Income $
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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ($000) Information as of December 31 for the year indicated Source: Bank holding company regulatory reports 33
Slide 34: Deposit and Loan Growth History
Deposit and Loan Growth History Deposit Growth 40.00% 36.31% 35.00% 30.00% 22.43% • Deposits as of 12/31/22 25.00% 20.00% 14.54% include $74.6 million in 15.00% 10.00% 6.51% brokered CD’s 5.00% 2.72% 0.00% ‐1.59% • Loan Growth in 2020 net ‐5.00% 2017 2018 2019 2020 2021 2022 of PPP loans was 13.9% L
Slide 35: Capital Ratios
Capital Ratios Regulatory Capital Ratios • Capital levels in excess 16.00% 14.57% 14.00% 12.48% 12.00% 10.98% 10.00% 8.75% 10.00% 8.00% 6.00% 5.00% 6.50% 8.00% of regulatory minimums • Increase in capital levels 4.00% 2.00% 0.00% Leverage Capital Common Equity Tier Tier 1 Risk Based 1 Risk Based Cap
Slide 36: Asset Quality
Asset Quality Allowance for Loan and Lease Losses (ALLL) Percentage • ALLL 0.01% lower than peer group at 1.50% 1.27% 1.17% 1.14% 1.24% 12/31/21 1.10% 1.00% 0.94% 0.93% 0.97% • Nonperforming assets at 0.06% as of 12/31/22 and have declined since 2017 0.50% • Net loan charge‐off ratio of 0.05% for th
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 0.09% for full year ended 12/31/22. – Exceptional customer loyalty represented by a Net Promoter Score of
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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