Basic earnings per Class A common share decreased 3.9%, or $3.94, during first quarter 2024. Basic earnings per Class A common share decreased 45.5%, or $82.06 compared to first quarter 2023. Basic earnings per Class B common share decreased 3.9%, or $0.02, during first quarter 2024. Basic earnings per Class B common share decreased 45.5%, or $0.55 compared to first quarter 2023. Net interest margin for first quarter 2024 was 2.81%, compared to 2.84% in fourth quarter 2023, and 3.52% in first quarter 2023.
Net Income
Net income for first quarter 2024 and fourth quarter 2023 was $10.6 million and $11.0 million, respectively. Interest income increased $0.9 million in first quarter 2024 compared to fourth quarter 2023, primarily due to increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by decreases in volume in the loan portfolio, the securities portfolio, and balances due from banks. Interest expense increased $1.5 million in first quarter 2024 compared to fourth quarter 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with an increase in volume of deposits. These increases were partially offset by a decrease in volume of other borrowings. Noninterest income decreased $1.2 million in first quarter 2024 compared to fourth quarter 2023, primarily due to decreases in earnings on bank-owned life insurance, service charges on deposit accounts, and other income. Noninterest expense increased $1.7 million in first quarter 2024 compared to fourth quarter 2023, due to increases in salary and employee benefit expenses and occupancy expenses, slightly offset by decreases in furniture and fixture expenses and other expenses A provision for loan losses reversal of $0.7 million was recorded in first quarter 2024 compared to a $2.7 million provision for loan losses recorded in the fourth quarter 2023. Net income for the three months ended March 31, 2024, and March 31, 2023, was $10.6 million and $19.7 million, respectively. Interest income increased $8.2 million in first quarter 2024 compared to first quarter 2023, primarily due increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $17.9 million in first quarter 2024 compared to first quarter 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $0.2 million in 2024 compared to 2023, primarily due to increases in earnings on bank-owned life insurance and service charges on deposit accounts slightly offset by a decrease in other income. Noninterest expense increased $3.3 million in 2024 compared to 2023, due to increases in other expenses, salary and employee benefit expenses, furniture and fixtures expenses, and occupancy expenses. Provision for loan losses decreased $1.1 million in 2024 due to portfolio declines and a small volume of loan charge-offs, compared to the three months ended March 31, 2023. Net interest margin decreased from 2.84% to 2.81% from fourth quarter 2023 to first quarter 2024. Net interest margin for the three months ended March 31, 2024, and March 31, 2023, was 2.81% and 3.52%, respectively. Assets
Total assets increased $166.3 million, or 2.6%, to $6.59 billion as of March 31, 2024, compared to December 31, 2023, primarily due to increased cash and due from banks, partially offset by decreased loans receivable and investment securities balances. The Alpine Bank Wealth Management* division had assets under management of $1.25 billion on March 31, 2024, compared to $1.15 billion on December 31, 2023, an increase of 8.4%. Loans
Loans outstanding as of March 31, 2024, totaled $4.0 billion. The loan portfolio decreased $16.3 million, or 0.4%, during first quarter 2024 compared to December 31, 2023. This decrease was driven by a $64.8 million decrease in real estate construction loans, a $15.0 million decrease in commercial real estate loans and a $0.2 million decrease in other loans. This decrease was slightly offset by a $55.3 million increase in residential real estate loans and a $7.9 million increase in commercial and industrial loans. Loans outstanding as of March 31, 2024, reflected an increase of $85.2 million, or 2.2%, compared to loans outstanding of $3.9 billion on March 31, 2023. This growth was driven by a $79.9 million increase in residential real estate loans, a $54.0 million increase in commercial real estate loans, a $10.0 million increase in commercial and industrial loans, and a $0.5 million increase in other loans. This increase was slightly offset by a $58.2 million decrease in real estate construction loans and a $1.9 million decrease in consumer loans. Deposits
Total deposits increased $212.5 million, or 3.7%, to $5.9 billion during first quarter 2024 compared to December 31, 2023, primarily due to a $148.4 million increase in money market accounts, a $58.4 million increase in demand deposits, a $8.9 million increase in interest-bearing checking accounts, and a $5.4 million increase in certificate of deposit accounts. The increase was partially offset by a $8.5 million decrease in savings accounts. Brokered certificates of deposit totaled $470.7 million on March 31, 2024, compared to $531.0 million on December 31, 2023. Noninterest-bearing demand accounts comprised 30.5% of all deposits on March 31, 2024, compared to 30.6% on December 31, 2023. Total deposits of $5.9 billion on March 31, 2024, reflected an increase of $196.1 million, or 3.4%, compared to total deposits of $5.7 billion on March 31, 2023. This increase was due to a $532.8 million increase in certificate of deposit accounts and a $227.5 million increase in money market accounts. This increase was partially offset by a $264.3 million decrease in interest-bearing checking accounts, a $256.9 million decrease in demand deposits and a $43.0 million decrease in savings accounts. Brokered certificates of deposit totaled $470.7 million on March 31, 2024, compared to $371.7 million on March 31, 2023. Noninterest-bearing demand accounts comprised 30.5% of all deposits on March 31, 2024, compared to 36.1% on March 31, 2023. 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 March 31, 2024, the Bank’s Tier 1 Leverage Ratio was 9.42%, Tier 1 Risk-Based Capital Ratio was 13.98%, and Total Risk-Based Capital Ratio was 15.13%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.05%, Tier 1 Risk-Based Capital Ratio was 13.41%, and Total Risk-Based Capital Ratio was 15.69% as of March 31, 2024. Book value per share on March 31, 2024, was $4,368.81 per Class A common share and $29.13 per Class B common share, an increase of $44.91 per Class A common share and $0.30 per Class B common share from December 31, 2023. Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights. Dividends
Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150 th ) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends. During first quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On April 11, 2024, the Company declared cash dividends of $30.00 per Class A common share and $0.20 per Class B common share payable on April 29, 2024, to shareholders of record on April 22, 2024. *Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank. 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).
READ MORE
Net Income
Net income for first quarter 2024 and fourth quarter 2023 was $10.6 million and $11.0 million, respectively. Interest income increased $0.9 million in first quarter 2024 compared to fourth quarter 2023, primarily due to increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by decreases in volume in the loan portfolio, the securities portfolio, and balances due from banks. Interest expense increased $1.5 million in first quarter 2024 compared to fourth quarter 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with an increase in volume of deposits. These increases were partially offset by a decrease in volume of other borrowings. Noninterest income decreased $1.2 million in first quarter 2024 compared to fourth quarter 2023, primarily due to decreases in earnings on bank-owned life insurance, service charges on deposit accounts, and other income. Noninterest expense increased $1.7 million in first quarter 2024 compared to fourth quarter 2023, due to increases in salary and employee benefit expenses and occupancy expenses, slightly offset by decreases in furniture and fixture expenses and other expenses A provision for loan losses reversal of $0.7 million was recorded in first quarter 2024 compared to a $2.7 million provision for loan losses recorded in the fourth quarter 2023. Net income for the three months ended March 31, 2024, and March 31, 2023, was $10.6 million and $19.7 million, respectively. Interest income increased $8.2 million in first quarter 2024 compared to first quarter 2023, primarily due increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $17.9 million in first quarter 2024 compared to first quarter 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $0.2 million in 2024 compared to 2023, primarily due to increases in earnings on bank-owned life insurance and service charges on deposit accounts slightly offset by a decrease in other income. Noninterest expense increased $3.3 million in 2024 compared to 2023, due to increases in other expenses, salary and employee benefit expenses, furniture and fixtures expenses, and occupancy expenses. Provision for loan losses decreased $1.1 million in 2024 due to portfolio declines and a small volume of loan charge-offs, compared to the three months ended March 31, 2023. Net interest margin decreased from 2.84% to 2.81% from fourth quarter 2023 to first quarter 2024. Net interest margin for the three months ended March 31, 2024, and March 31, 2023, was 2.81% and 3.52%, respectively. Assets
Total assets increased $166.3 million, or 2.6%, to $6.59 billion as of March 31, 2024, compared to December 31, 2023, primarily due to increased cash and due from banks, partially offset by decreased loans receivable and investment securities balances. The Alpine Bank Wealth Management* division had assets under management of $1.25 billion on March 31, 2024, compared to $1.15 billion on December 31, 2023, an increase of 8.4%. Loans
Loans outstanding as of March 31, 2024, totaled $4.0 billion. The loan portfolio decreased $16.3 million, or 0.4%, during first quarter 2024 compared to December 31, 2023. This decrease was driven by a $64.8 million decrease in real estate construction loans, a $15.0 million decrease in commercial real estate loans and a $0.2 million decrease in other loans. This decrease was slightly offset by a $55.3 million increase in residential real estate loans and a $7.9 million increase in commercial and industrial loans. Loans outstanding as of March 31, 2024, reflected an increase of $85.2 million, or 2.2%, compared to loans outstanding of $3.9 billion on March 31, 2023. This growth was driven by a $79.9 million increase in residential real estate loans, a $54.0 million increase in commercial real estate loans, a $10.0 million increase in commercial and industrial loans, and a $0.5 million increase in other loans. This increase was slightly offset by a $58.2 million decrease in real estate construction loans and a $1.9 million decrease in consumer loans. Deposits
Total deposits increased $212.5 million, or 3.7%, to $5.9 billion during first quarter 2024 compared to December 31, 2023, primarily due to a $148.4 million increase in money market accounts, a $58.4 million increase in demand deposits, a $8.9 million increase in interest-bearing checking accounts, and a $5.4 million increase in certificate of deposit accounts. The increase was partially offset by a $8.5 million decrease in savings accounts. Brokered certificates of deposit totaled $470.7 million on March 31, 2024, compared to $531.0 million on December 31, 2023. Noninterest-bearing demand accounts comprised 30.5% of all deposits on March 31, 2024, compared to 30.6% on December 31, 2023. Total deposits of $5.9 billion on March 31, 2024, reflected an increase of $196.1 million, or 3.4%, compared to total deposits of $5.7 billion on March 31, 2023. This increase was due to a $532.8 million increase in certificate of deposit accounts and a $227.5 million increase in money market accounts. This increase was partially offset by a $264.3 million decrease in interest-bearing checking accounts, a $256.9 million decrease in demand deposits and a $43.0 million decrease in savings accounts. Brokered certificates of deposit totaled $470.7 million on March 31, 2024, compared to $371.7 million on March 31, 2023. Noninterest-bearing demand accounts comprised 30.5% of all deposits on March 31, 2024, compared to 36.1% on March 31, 2023. 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 March 31, 2024, the Bank’s Tier 1 Leverage Ratio was 9.42%, Tier 1 Risk-Based Capital Ratio was 13.98%, and Total Risk-Based Capital Ratio was 15.13%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.05%, Tier 1 Risk-Based Capital Ratio was 13.41%, and Total Risk-Based Capital Ratio was 15.69% as of March 31, 2024. Book value per share on March 31, 2024, was $4,368.81 per Class A common share and $29.13 per Class B common share, an increase of $44.91 per Class A common share and $0.30 per Class B common share from December 31, 2023. Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights. Dividends
Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150 th ) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends. During first quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On April 11, 2024, the Company declared cash dividends of $30.00 per Class A common share and $0.20 per Class B common share payable on April 29, 2024, to shareholders of record on April 22, 2024. *Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank. 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).
