Alpine Banks Colorado · OTC:ALPIB
Alpine Banks Colorado — Alpine Banks of Colorado — Investor Presentation (2023)
38 slides from Alpine Banks Colorado's investor presentation, 2023
Slide 1: Third Quarter 2023 Investor Presentation
Third Quarter 2023 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 $6.47 Billion Total Deposits $5.83 Billion Gross Loans $4.05 Billion Employees 843 Locations 39 ROA 0.93% ROE 14.17% Source: Bank holding company regulatory report for the quarter ended 9/30/23 5
Slide 6: Financial Ratios for the Quarter ended 9/30/23
Financial Ratios for the Quarter ended 9/30/23 (unaudited) Net Income Growth ‐12.69% Annualized Deposit Growth 7.55% Annualized Loan Growth 4.78% Efficiency Ratio 68.92% Net Interest Margin (TE) 3.28% NPA's to Total Assets 0.34% Total Risk Based Capital 15.12% Source: Bank holding company regulatory
Slide 7: Stock Information as of 9/30/23 and Employee Ownership
Alpine Banks of Colorado Stock Information as of 9/30/23 • 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 50 Years Glen Jammaron President and Vice Chairman 38 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 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
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 – Nearly $2.1 million donated to the program in 2022 • Other Donations – $3.3 million donated in 2022 above and beyond the
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 Deposit Cost of Interest‐Bearing Deposits 2% Brokered CD's 9% 2.00% 1.53% 1.50% 1.00% Certificates of 0.50% 0.10% 0.15% 0.09% 0.04% 0.09% Deosit >= Non‐Interest Bearing $100,000 Checking 0.00% 9% 31% 2018 2019 2020 2021 2022 Sep‐23 Alpine Banks of Colorado Pee
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) 6.00% 5.53% 5.48% 5.50% 5.32% 5.00% 4.79% 4.64% 4.71% Nonfarm nonresidential 4.50% 29% 4.00% 1 ‐ 4 Family 2018 2019 2020 2021 2022 Sep‐23 44% Loans Alpine Banks of Colorado Peer Held for Resale 0% Farmland • 44% of loans are 1 to 4 1% Multifa
Slide 20: Loan Portfolio Segmentation
Loan Portfolio Segmentation COMMERCIAL REAL ESTATE Hotel/Motel Other Health Care 1 ‐ 4 FAMILY REAL ESTATE Industrial Other Warehouse Home Equity Retail Loan Office CONSTRUCTION AND LAND In House Home Equity Mortgage DEVELOPMENT Line Product Land End User Land Development Loans Fractional 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 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 footprint • Br
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% 75.00% 70.00% 68.92% • Efficiency Ratio has been negatively 64.70% 64.39% 63.92% 65.00% 63.07% 61.00% 60.00% 55.00% impacted by lowered 2018 2019 2020 2021 2022 Sep‐23 Alpine Banks of Colorado Peer NIM Average Assets Per Employee (in Millions) • Assets
Slide 25: Noninterest Income
Noninterest Income • Wealth Management – 27.5 employees working in Wealth Management as of 9/30/23 – Assets under management of $1.086 billion as of 9/30/23 – 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 first three quarters of
Slide 26: Financial Information
Financial Information Alpine Bank, Fort Collins Alpine Bank, Colorado Springs 26
Slide 27: Shareholder Returns
Shareholder Returns Earnings Per Share Class B Shares $5.00 $4.64 $4.00 $3.47 $3.69 $3.28 $3.86 • 17.0% Cumulative Average $3.00 $2.83 Growth Rate (CAGR) in $2.00 Earnings Per Share for the $1.00 2018 to 2022 period $‐ 2018 2019 2020 2021 2022 Sep‐23 • Historically increasing dividends prior to COVI
Slide 28: Tangible Book Value
Tangible Book Value Class B Shares Tangible Book Value Per Share $30.00 $26.01 $25.69 • 10.4% CAGR in Tangible Book $24.86 $25.00 $23.20 $20.69 $20.00 $17.71 Value Per Share in the period $15.00 2018 to 2022 $10.00 $5.00 • July 2022 capital raise was $‐ accretive to Tangible Book 2018 2019 2020 2021
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 Aug‐19 Nov‐19 Feb‐20 May‐20 Aug‐20 Nov‐20 Feb‐21 May‐21 Aug‐21 Nov‐21 Feb‐22 May‐22 Aug‐22 Nov‐22
Slide 30: Earnings Growth History
Earnings Growth History Return on Assets (ROA) • Historically 2.00% 1.54% 1.55% 1.50% 1.13% 1.16% 1.00% 1.03% 0.93% outperformed peer 0.50% group in both ROA and 0.00% 2018 2019 2020 2021 2022 Sep‐23 ROE Alpine Banks of Colorado Peer • ROA negatively Return on Equity (ROE) 25.00% 19.90% impacted by
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 Sep‐23 ($000) Information as of D
Slide 32: Net Interest Margin (TE)
Net Interest Margin (TE) Net Interest Margin (TE) 5.00% 4.59% 4.40% 4.50% 4.00% 3.84% 3.46% • Net Interest Margin 3.50% 3.00% 3.17% 3.28% (NIM) declined as 2.50% general market rates fell 2018 2019 2020 2021 2022 2023 Alpine Banks of Colorado Peer during 2019‐2021 Annualized Net Interest Income peri
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 Sep‐23 ($000) Information as of December 31 for the year indicated, except 9/30/23 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 9/30/23 20.00% 15.00% include $563.7 million 10.00% 5.00% 6.51% 2.72% ‐1.59% 5.65% in brokered CD’s 0.00% ‐5.00% 2018 2019 2020 2021 2022 Sep‐23 • 12.4% CAGR in Deposits Loan Growth and 11.4% CA
Slide 35: Capital Ratios
Capital Ratios Regulatory Capital Ratios 15.12% • Capital levels in excess 16.00% 14.00% 12.86% 11.37% 12.00% 10.00% 8.78% 10.00% 8.00% 6.00% 5.00% 6.50% 8.00% of regulatory minimums 4.00% 2.00% 0.00% • Increase in capital levels Leverage Capital Common Equity Tier 1 Risk Based Tier 1 Risk Based Cap
Slide 36: Asset Quality
Asset Quality Allowance for Loan and Lease Losses • ALLL 0.07% lower than peer group at (ALLL) Percentage 12/31/22 1.50% 1.24% 1.17% 0.93% 0.97% 1.14% 1.10% 1.10% • Nonperforming assets at 0.34% as of 1.00% 9/30/23 related to one well secured 0.50% nonperforming loan relationship 0.00% 2018 2019 202
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 1.53% for nine months ended 9/30/23. 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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