Alpine Banks of Colorado (OTCQX: ALPIB) reported a 13% year-over-year increase in net income to $19.9 million for the second quarter ended June 30, 2026, driven by robust loan growth and an expanded net interest margin. The Glenwood Springs-based holding company for Alpine Bank saw its profitability rise as market disruptions in Colorado created new lending opportunities, allowing the employee-owned institution to drive value for shareholders while maintaining strict asset quality standards.

The company declared cash dividends of $0.23 per Class A and Class B common share, payable on July 27, 2026, to shareholders of record on July 20, 2026. This follows the payment of $0.23 per share during the second quarter. All prior period Class A common share data has been adjusted to reflect the 150-for-1 stock split effective May 1, 2025.

Financial Performance Highlights

Net interest income rose to $62.9 million in Q2 2026, up from $55.0 million in Q2 2025, fueled by higher loan balances and increased yields on the loan and securities portfolio. The net interest margin (tax-equivalent basis) expanded to 3.79%, compared to 3.50% in the prior-year quarter, largely due to the repricing of loans and securities originated between 2020 and 2022. Interest expense decreased by $2.4 million year-over-year to $20.7 million, reflecting lower rates paid on deposits.

Noninterest income fell to $13.7 million from $17.7 million in Q1 2026, primarily due to the absence of profits from the sale of an OREO property recorded in the previous quarter. Noninterest expense decreased by $2.3 million to $48.2 million, aided by reductions in salaries, benefits, and business development costs.

Loan Growth and Asset Quality

Loan production accelerated, with loans held for investment reaching $4.5 billion as of June 30, 2026, an 11% annualized increase from the first quarter. Total loans originated in Q2 2026 were $458 million, significantly higher than $254 million in Q1 2026. The growth was broad-based, covering commercial real estate, commercial and industrial, residential, and consumer loans. To fund this expansion, the company sold $49.0 million in available-for-sale securities, recording a net loss of $309,000.

Asset quality remained stable with nonperforming loans at 0.31% of total loans, down slightly from 0.32% in Q1 2026 but up from 0.26% in Q2 2025. Annualized net charge-offs were 0.1%. The provision for credit losses was $4.0 million, comprising $1.3 million for credit losses, $1.8 million for loan growth, and $0.9 million to increase the allowance ratio by 2 basis points to 1.14%.

Capital and Deposits

Deposits totaled $5.9 billion, remaining relatively flat year-over-year. Noninterest-bearing deposits accounted for 30.2% of total deposits, providing a stable funding base. The company’s capital position strengthened, with the tier 1 leverage ratio increasing by 32 basis points to 10.46%. The consolidated total risk-based capital ratio stood at 17.17%, and the common equity tier 1 risk-based capital ratio was 13.06%, both well above regulatory requirements for a well-capitalized bank. Tangible book value per share rose to $37.59 from $32.87 a year ago.

What the Numbers Show

The divergence between rising net interest income and falling interest expense highlights Alpine Bank’s effective management of its liability side. While loan yields closed at 6.56% (down from 7.49% in Q2 2025), the cost of interest-bearing deposits dropped more sharply to 1.79% (from 2.05%), preserving the net interest margin. This suggests that despite lower overall rate environments, the bank is successfully repricing liabilities faster than assets, protecting profitability even as it aggressively expands its loan book through security sales.

Glen Jammaron, Chairman, President and CEO, stated, "Our continued support of the communities we serve across Colorado continued to benefit Alpine Bank, as the market disruption throughout the state created new opportunities. We remain committed to those communities as we seek to drive value for our employee-owners and shareholders." The Alpine Bank Wealth Management division also grew, with assets under management reaching $1.45 billion.