Alpine Banks Colorado · OTC:ALPIB
Alpine Banks Colorado — Alpine Banks of Colorado — Investor Presentation (2024)
38 slides from Alpine Banks Colorado's investor presentation, May 22, 2024
Slide 1: First Quarter 2024 Investor Presentation
First 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 $6.59 Billion Total Deposits $5.91 Billion Gross Loans $4.04 Billion Employees 850 Locations 39 ROA 0.64% ROE 9.04% Source: Bank holding company regulatory report for the quarter ended 3/31/24 5
Slide 6: Financial Ratios for the Quarter ended 3/31/24
Financial Ratios for the Quarter ended 3/31/24 (unaudited) Net Income Growth ‐46.11% Annualized Deposit Growth 15.00% Annualized Loan Growth ‐1.75% Efficiency Ratio 78.34% Net Interest Margin (TE) 2.90% NPA's to Total Assets 0.38% Total Risk Based Capital 15.70% Source: Bank holding company regulato
Slide 7: Stock Information as of 3/31/24 and Employee Ownership
Alpine Banks of Colorado Stock Information as of 3/31/24 • Class B Non‐Voting Common Stock – Traded on OTCQX® Best Market – Ticker: ALPIB – 8,333,983 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 35 Years Eric A. Gardey Chief Financial Officer 34 Years Jay Rickstrew Chief Retail Officer 29 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
Branch Network Rifle 2”. +New Castle Q -Battlement Mesa AQ AS + Glenwood Springs +Fort Collins EY + Steamboat Springs +Boulder YQ aS . vi Frisco 9 +South Rifle “Vail” ; + Union Station (Zz) qQ Q A) bent AQ EY. dillon «Cherry Creek Eagle EY ES TS + DenverTech Center ier Q AQ «Breckenridge Aurora LPO
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
pe ee 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 Cost of Interest‐Bearing Deposits Deposit 3.00% 2.53% 3% Brokered CD's 2.50% 8% 1.76% 2.00% 1.50% 1.00% Certificates of 0.50% 0.15% 0.09% 0.04% 0.09% Deosit >= Non‐Interest Bearing 0.00% $100,000 Checking 2019 2020 2021 2022 2023 31‐Mar 8% 30% Alpine Banks of
Slide 18: Colorado Deposit Market Share
Colorado Deposit Market Share Statewide (as of June 30, 2023) State Colorado Deposits Market Name (Headquarters) Offices ($000) Share 1 Wells Fargo Bank, N.A. SD 124 35,744,514 19.08% 2 JPMorgan Chase Bank, N.A. OH 112 23,818,914 12.72% 3 Firstbank CO 84 22,513,871 12.02% 4 U.S. Bank N.A. OH 106 19,
Slide 19: Diversified Loan Portfolio
Diversified Loan Portfolio Yield on Loans and Leases (TE) 7.50% 7.00% 6.50% 5.77% 6.00% 5.53% 5.54% 5.50% 4.79% 4.71% Nonfarm 5.00% 4.64% nonresidential 4.50% 29% 4.00% 2019 2020 2021 2022 2023 31‐Mar Loans 1 ‐ 4 Family Held 46% Alpine Banks of Colorado Peer for Resale 0% Farmland • 46% of loans are
Slide 20: Loan Portfolio Segmentation
Loan Portfolio Segmentation COMMERCIAL REAL ESTATE Other Hotel/Motel Health Care 1 ‐ 4 FAMILY REAL ESTATE Industrial Warehouse Other Home Equity Retail Loan Office CONSTRUCTION AND LAND In House Home Equity DEVELOPMENT Mortgage Line Land Product 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 6 branch locations in Front Range of Colorado • Colorado Springs and Fort Collins branches opened in the 4th Quarter 2022 • Proactively adding to the lending staff within our current footpri
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 78.34% 80.00% 75.00% 70.00% 69.94% • Efficiency Ratio has 65.00% 64.70% 64.39% 63.92% 61.00% been negatively 60.00% 55.00% impacted by lowered 2019 2020 2021 2022 2023 31‐Mar Alpine Banks of Colorado Peer NIM Average Assets Per Employee (in Millions) $7.68 $7.
Slide 25: Noninterest Income
Noninterest Income • Wealth Management – 27.5 employees working in Wealth Management as of 3/31/24 – Assets under management of $1.25 billion as of 3/31/24 – 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 $3.69 $3.86 $4.64 • Historically increasing $4.00 $3.51 $3.00 $3.28 dividends prior to $2.00 $0.66 COVID $1.00 $‐ 2019 2020 2021 2022 2023 31‐Mar • January 2024 dividend Dividends Per Share held steady at $0.20 per $0.90 $0.80 $0.77 $0.72 $
Slide 28: Tangible Book Value
Tangible Book Value Class B Shares Tangible Book Value Per Share $30.00 $27.65 $28.04 $26.01 • 9.3% CAGR in Tangible Book $24.86 $25.00 $23.20 $20.69 $20.00 Value Per Share in the period $15.00 2019 to 2023 • July 2022 capital raise was $10.00 $5.00 $‐ accretive to Tangible Book 2019 2020 2021 2022
Slide 29: Trading Volume
Trading Volume Monthly Trading Volume in Shares Monthly Trading Volume in Dollars 140,000 $4,000,000 120,000 $3,500,000 100,000 $3,000,000 $2,500,000 80,000 $2,000,000 60,000 $1,500,000 40,000 $1,000,000 20,000 $500,000 ‐ $‐ May‐19 Aug‐19 Feb‐20 May‐20 Aug‐20 Feb‐21 May‐21 Aug‐21 Feb‐22 May‐22 Aug‐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% 0.87% outperformed peer 1.00% 0.50% 0.64% group in both ROA and 0.00% ROE • ROA negatively 2019 2020 2021 2022 2023 31‐Mar Alpine Banks of Colorado Peer Return on Equity (ROE) impacted by NIM 20.00% 18.
Slide 31: Net Income 5 Year Growth and Cumulative Earnings
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 $150,000 5 yr. Cumulative Earnings $30,000 $100,000 $20,000 $50,000 $10,000 $0 $0 2019 2021 2023 ($000) Information as of December 31 for th
Slide 32: Net Interest Margin (TE)
Net Interest Margin (TE) Net Interest Margin (TE) 5.00% 4.59% 4.50% • Net Interest Margin 3.84% 4.00% 3.45% 3.50% 3.17% 3.21% 3.00% 2.90% (NIM) declined as 2.50% 2019 2020 2021 2022 2023 31‐Mar general market rates fell Alpine Banks of Colorado Peer 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 31‐Mar ($000) Information as of December 31 for the year indicated, except 3/31/24 Source: Bank holding company regulatory rep
Slide 34: Deposit and Loan Growth History
Deposit and Loan Growth History Deposit Growth 40.00% 36.31% 35.00% 30.00% 25.00% 22.43% • Deposits as of 3/31/24 20.00% 15.00% 15.00% include $470.7 million 10.00% 5.00% 2.72% ‐1.59% 3.29% in brokered CD’s 0.00% ‐5.00% 2019 2020 2021 2022 2023 31‐Mar • 11.7% CAGR in Deposits 25.00% Loan Growth and
Slide 35: Capital Ratios
Capital Ratios Regulatory Capital Ratios 18.00% 15.70% 16.00% 14.00% 12.00% 11.90% 13.42% 10.00% • Capital levels in excess 10.00% 8.00% 9.05% 5.00% 6.50% 8.00% of regulatory minimums 6.00% 4.00% 2.00% 0.00% • Increase in capital levels Leverage Capital Common Equity Tier Tier 1 Risk Based 1 Risk Ba
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 0.38% as of 3/31/24 related to one well secured 0.50% nonperforming loan relationship 0.00% • Net loan charge‐o
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 2.53% for twelve months ended 12/31/23. Still an industry leader – Exceptional customer loyalty represente
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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