Alpine Banks of Colorado announces financial results for second quarter 2025

GLENWOOD SPRINGS, Colo., July 31, 2025 (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 second quarter ended June 30, 2025. The Company reported net income of $17.6 million, or $1.10 per basic Class A common share and basic Class B common share, for second quarter 2025.

Highlights in second quarter 2025 include:

• Basic earnings per Class A and Class B common shares increased 23.1%, or $0.21, during second quarter 2025.
• Basic earnings per Class A and Class B common shares increased 44.3%, or $0.61, compared to second quarter 2024.
• Net interest margin for second quarter 2025 was 3.50%, compared to 3.38% in first quarter 2025, and 2.87% in second quarter 2024.
  

“Our second quarter results reflect our continued improvement in both earnings and loan portfolio growth,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “Net income through the first six months of 2025 is up 43% over the first six months of 2024. Loan growth through the first half of 2025 is running at a 7.5% annualized pace. We look forward to what is to come in the second half of the year.”

Net Income
Net income for second quarter 2025 and first quarter 2025 was $17.6 million and $14.3 million, respectively. Interest income increased $3.0 million in second quarter 2025 compared to first quarter 2025, primarily due to increases in yields on the loan portfolio and due from bank balances along with increased volume in the loan portfolio. These increases were partially offset by decreases in yields and balances in the securities portfolio and decreased volume in due from bank balances. Interest expense increased $0.1 million in second quarter 2025 compared to first quarter 2025, primarily due to decreases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits. These increases were partially offset by a decrease in volume of deposits. Noninterest income increased $0.7 million in second quarter 2025 compared to first quarter 2025, primarily due to increases in service charges on deposit accounts and increases in other income. Noninterest expense decreased $0.5 million in second quarter 2025 compared to first quarter 2025, due to decreases in salary and employee benefit expenses and occupancy expenses, slightly offset by increases in furniture and fixture expenses and other expenses. A provision for loan losses of $1.6 million was recorded in second quarter 2025 compared to a $1.8 million provision for loan losses recorded in the first quarter 2025. Net income for the six months ended June 30, 2025, and June 30, 2024, was $31.9 million and $22.3 million, respectively. Interest income increased $7.7 million in the first six months of 2025 compared to the first six months of 2024, primarily due to increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio and the securities portfolio. These increases were slightly offset by a decrease in volume in the securities portfolio and a decrease in yield on the balances due from banks. Interest expense decreased $10.5 million in the first six months of 2025 compared to the first six months of 2024, primarily due to decreases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits. These decreases were partially offset by an increase in the volume of deposit balances. Noninterest income increased $1.8 million in the first six months of 2025 compared to the first six months of 2024, primarily due to increases in earnings on bank‐owned life insurance, service charges on deposit accounts, and other income. Noninterest expense increased $3.8 million in the first six months of 2025 compared to the first six months of 2024, due to increases in other expenses, salary and employee benefit expenses, and occupancy expenses, partially offset a decrease in furniture and fixtures expenses, Provision for loan losses increased $3.9 million in the six months ended June 30, 2025 due to loan portfolio increases and a small volume of loan charge‐offs, compared to the six months ended June 30, 2024.

Net interest margin increased from 3.38% to 3.50% from first quarter 2025 to second quarter 2025. Net interest margin for the six months ended June 30, 2025, and June 30, 2024, were 3.44% and 2.84%, respectively.

Assets
Total assets decreased $57.6 million, or 0.9%, to $6.61 billion as of June 30, 2025, compared to March 31, 2025, primarily due to decreased cash and due from banks and investment securities balances partially offset by increased loans receivable. The Alpine Bank Wealth Management* division had assets under management of $1.36 billion on June 30, 2025, compared to $1.32 billion on March 31, 2025, an increase of 3.0%.

Loans
Loans outstanding as of June 30, 2025, totaled $4.2 billion. The loan portfolio increased $87.0 million, or 2.1%, during second quarter 2025 compared to March 31, 2025. This increase was driven by a $81.8 million increase in commercial real estate loans, a $77.0 million increase in residential real estate loans, a $3.0 million increase in consumer loans, and a $1.6 million increase in commercial and industrial loans. This increase was slightly offset by a $76.8 million decrease in real estate construction loans.

Loans outstanding as of June 30, 2025, reflected an increase of $145.7 million, or 3.6%, compared to loans outstanding of $4.1 billion on June 30, 2024. This growth was driven by a $131.2 million increase in commercial real estate loans, a $70.3 million increase in residential real estate loans, and a $8.8 million increase in consumer loans. This increase was slightly offset by a $56.7 million decrease in real estate construction loans and a $8.2 million decrease in commercial and industrial loans.

Deposits
Total deposits decreased $68.4 million, or 1.2%, to $5.9 billion during second quarter 2025 compared to March 31, 2025, primarily due to a $74.2 million decrease in demand deposits, a $7.8 million decrease in certificate of deposit accounts, and a $5.6 million decrease in savings accounts. This decrease was partially offset by a $15.2 million increase in money market accounts and a $2.9 million increase in interest‐bearing checking accounts. Brokered certificates of deposit decreased 13.5% to $160.0 million on June 30, 2025, compared to $185.0 million on March 31, 2025. Noninterest‐bearing demand accounts comprised 29.9% of all deposits on June 30, 2025, compared to 30.8% on March 31, 2025.

Total deposits of $5.87 billion on June 30, 2025, reflected an increase of $76.6 million, or 1.3%, compared to total deposits of $5.79 billion on June 30, 2024. This increase was due to a $228.2 million increase in money market accounts, a $64.4 million increase in demand deposits and a $18.9 million increase in interest‐bearing checking accounts. This increase was partially offset by a $226.6 million decrease in certificate of deposit accounts and a $8.4 million decrease in savings accounts. Brokered certificates of deposit decreased 59.0% to $160.0 million on June 30, 2025, compared to $390.5 million on June 30, 2024. Noninterest‐bearing demand accounts comprised 29.9% of all deposits on June 30, 2025, compared to 29.2% on June 30, 2024.

Amended and Restated Articles of Incorporation
On April 10, 2025, the shareholders of Alpine approved amended and restated articles of incorporation to affect the following actions, among other things:

• Increase from 15,100,000 to 30,000,000 the total authorized shares of common stock that the Company is authorized to issue;
• Increase from 100,000 to 15,000,000 the authorized shares of the Class A common stock;
• Effect a forward stock split of the outstanding shares of the Class A common stock by a ratio of 150‐for‐one;
• Provide that holders of Class A common stock and Class B common stock shall be entitled to share equally, on a per share basis based upon the number of shares issued and outstanding, in dividends and other distributions;
• Provide that each one share of Class B common stock shall be entitled to one vote;
• Provide that each one share of Class A common stock shall be entitled to twenty votes;
• Provide that unless otherwise required by law the Class A common stock and Class B common stock will vote together as a single class on all matters, including the election of directors;
• Provide that a majority of the total voting power of the outstanding shares of common stock entitled to vote shall constitute a quorum at any meeting of shareholders; and
• Provide that the approval of certain corporate actions requires the approval of more than 66 2/3% of the voting power of the outstanding shares of common stock entitled to vote.
  

The amended and restated articles of incorporation and related stock split of the Class A common stock became effective on May 1, 2025. All Class A share and per share information for the quarter and six months ended June 30, 2024, set forth herein have been adjusted to reflect the 150‐for‐1 stock split. The stock split has no impact on the Class B share and per share information.

Capital
The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of June 30, 2025, the Bank’s Tier 1 Leverage Ratio was 9.90%, Tier 1 Risk‐Based Capital Ratio was 14.08%, and Total Risk‐Based Capital Ratio was 15.21%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.63%, Tier 1 Risk‐Based Capital Ratio was 13.69%, and Total Risk‐Based Capital Ratio was 15.68% as of June 30, 2025.

Book value per share on June 30, 2025, was $33.97 per Class A and Class B common shares, an increase of $1.03 per share from March 31, 2025.

Dividends
During second quarter 2025, the Company paid cash dividends of $0.21 per Class A and Class B common shares. On July 10, 2025, the Company declared cash dividends of $0.21 per Class A and Class B common shares payable on July 28, 2025, to shareholders of record on July 21, 2025.

About Alpine Banks of Colorado
Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.6 billion, independent, employee‐owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five‐star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB" on the OTCQX^® Best Market. Learn more at www.alpinebank.com.

*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.

A note about forward‐looking statements
This press release 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,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “looks forward to,” “continues,” “expects” and similar references to future periods. Examples of forward‐looking statements include, but are not limited to, statements we make regarding our evaluation of macro‐environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward‐looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward‐looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward‐looking statements. We caution you therefore against relying on any of these forward‐looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward‐looking statement include, but are not limited to:

• The ability to attract new deposits and loans;
• Demand for financial services in our market areas;
• Competitive market‐pricing factors;
• Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
• Effects of future economic, business and market conditions, including higher inflation;
• Adverse effects of public health events, such as the COVID‐19 pandemic, including governmental and societal responses;
• Deterioration in economic conditions that could result in increased loan losses;
• Actions by competitors and other market participants that could have an adverse impact on expected performance;
• Risks associated with concentrations in real estate‐related loans;
• Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
• Market interest rate volatility, including changes to the federal funds rate;
• Stability of funding sources and continued availability of borrowings;
• Geopolitical events, including global tariffs, acts of war, international hostilities and terrorist activities;
• Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
• Actions of government regulators, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
• Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
• Any increases in FDIC assessments;
• Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
• The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
• Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
• The ability to recruit and retain key management and staff;
• The ability to raise capital or incur debt on reasonable terms; and
• Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.
  

There are many factors that could cause actual results to differ materially from those contemplated by forward‐looking statements. Any forward‐looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward‐looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Key Financial Measures
The attached tables highlight the Company’s key financial measures for the periods indicated (unaudited).
https://alpinebank.kcmspreview.com/_/kcms-doc/1507/92807/Alpine-Banks-of-Colorado-Consolidated-Financial-Statements_06.30.25.pdf

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