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Section 1: 8-K (8-K)

pub-8k_20180331.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 25, 2018

 

People’s Utah Bancorp

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Utah

 

001-37416

 

87-0622021

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

1 East Main Street American Fork, UT

(Address of principal executive offices)

 

84003

(Zip code)

 

Registrant’s telephone number, including area code:  (801) 642-3998

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company [X]  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [X]

 

 

 

 


 

Item 2.02Results of Operations and Financial Condition.

On April 25, 2018, the Company issued a press release announcing its financial results for the quarter ended March 31, 2018 and the quarterly dividend. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein in its entirety by reference.

The information in this Item 2.02 and the Exhibit attached hereto is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such document or filing.

 

Item 9.01Financial Statements and Exhibits.

 

 

(d) Exhibits

 

Exhibit Number

Description

99.1

Press Release dated April 25, 2018, announcing financial results for the quarter ended March 31, 2018 and the quarterly dividend.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

     People’s Utah Bancorp

 

 

 

 

Date: April 25, 2018

By:

/s/ Mark K. Olson

 

 

Mark K. Olson

 

 

Executive Vice President and

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

pub-ex991_6.htm

 

 

Exhibit 99.1

 

PEOPLE’S UTAH BANCORP REPORTS FIRST QUARTER RESULTS AND ANNOUNCES INCREASED QUARTERLY DIVIDEND PAYMENT

First Quarter Highlights

Total deposits grew $338 million, or 22.99%, to $1.81 billion year-over-year

Loans held for investment grew $536 million, or 46.48%, to $1.69 billion year-over-year

Net interest margin widened 67 bps to 5.22% year-over-year

Earnings per diluted share increased 33.33% to $0.48 for the first quarter of 2018

Return on average assets improved to 1.70% for the first quarter of 2018

Return on average equity improved to 13.96% for the first quarter of 2018

AMERICAN FORK, UTAH, April 25, 2018 – People’s Utah Bancorp (the “Company” or “PUB”) (Nasdaq: PUB) reported net income of $9.0 million for the first quarter of 2018 compared with $0.6 million for the fourth quarter of 2017, and $6.5 million for the first quarter of 2017.  Diluted earnings per common share were $0.48 for the first quarter of 2018 compared with $0.03 for the fourth quarter of 2017, and $0.36 for the first quarter of 2017.  

Net income for 2017 was impacted by two large, non-recurring items.  The Company re-measured its net deferred income tax assets at the end of December and recorded a one-time additional income tax expense of $4.7 million related to the write-down of deferred income tax assets for tax benefits that the Company does not expect to realize due to the reduction of the federal corporate tax rate.  In addition, the Company recorded $4.8 million in non-recurring costs associated with the acquisition of the Utah Banner Bank branches and the merger of Town & Country Bank in 2017.  

The Company has excluded costs related to the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank incurred in both 2017 and 2018; higher income tax expense related to the one-time write-down of its deferred income tax assets recorded in 2017; and the loss on investment securities sold in 2017 to raise liquidity to fund the purchase of net assets from the acquisition of the Utah branches of Banner Bank recorded in the third quarter of 2017 to derive non-GAAP financial information related to the Company’s core operations.  The Company believes this non-GAAP(NG) financial information is useful in understanding the Company’s core financial performance.  


________________________________

(NG) Details on Non-GAAP financial information are on last two tables of this press release.

 


 

Net income from core operations was $9.3 million, or $0.49 per diluted common share, for the first quarter of 2018 compared with $8.1 million, or $0.43 per diluted common share, for the fourth quarter of 2017 and $6.5 million, or $0.36 per diluted common share, for the first quarter of 2017(NG).  

Return on average assets for the first quarter of 2018 was 1.70% compared with 0.12% for the fourth quarter of 2017, and 1.59% for the first quarter of 2017.  Return on average assets from core operations for the first quarter 2018 was 1.75% compared with 1.58% for the fourth quarter of 2017, and 1.59% for the first quarter of 2017(NG).  

Return on average equity for the first quarter of 2018 was 13.96% compared with 0.92% for the fourth quarter of 2017, and 11.39% for the first quarter of 2017.  Return on average equity from core operations for the first quarter 2018 was 14.37% compared with 12.59% for the fourth quarter of 2017, and 11.39% for the first quarter of 2017(NG).  

The Board of Directors declared an increased quarterly dividend payment of $0.10 per common share. The dividend will be payable on May 14, 2018 to shareholders of record on May 7, 2018. The dividend payout ratio for earnings for the quarter ended March 31, 2018 was 20.74%.  This continues the over 50-year trend of paying dividends by the Company.

“2017 was a transformational year for us as we successfully completed the acquisition, conversion, and integration of both the Utah branch locations from Banner Bank and Town & Country Bank.  These two transactions expanded our footprint throughout Utah and southern Idaho,” said Len Williams, President and Chief Executive Officer.  “With these two transactions behind us, we believe that we can continue to grow our business organically and diversify our loan portfolio.  We are excited about our prospects to expand our commercial and industrial lending to small and medium sized businesses, particularly in the Salt Lake City metro markets.

Net Interest Income and Margin

Net interest income grew 45.97%, or $8.2 million, to $26.0 million for the first quarter of 2018 compared with $17.8 million for the first quarter of 2017.  The increase is primarily the result of average interest earning assets growing 27.24%, or $432 million, and yields on interest earning assets increasing 77 basis points for the same comparable periods to 5.52% for the first quarter of 2018. Higher yields on interest earning assets was primarily the result of yields on loans increasing 28 basis points to 6.30% for the same comparable periods and the percentage of loans to total interest earning assets increasing to 82.42% for the first quarter of 2018 compared with 71.64% for the first quarter of 2017.  


2

 

 


Total cost of interest bearing liabilities increased 18 basis points to 0.49% for the first quarter of 2018 compared with 0.31% for the first quarter of 2017, and is primarily the result of a $97.3 million increase in average short-term borrowing at a borrowing rate of 1.73% for the first quarter of 2018.  The increase in short-term borrowings of $39.0 million in the first quarter of 2018 is primarily the result of seasonal deposit outflows and approximately $10.3 million in deposit run-off from the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank.  The cost of interest bearing deposits increased 7 basis points to 0.38% for the first quarter of 2018 compared with the same period a year earlier.

Net interest margin increased 67 basis points to 5.22% for the first quarter of 2018 compared with the same period a year earlier.  Acquisition accounting adjustments, including the accretion of loan discounts, and amortization of certificate of deposits premium, added 24 basis points to the net interest margin in the first quarter of 2018.

Provision for Loan Losses

Provision for loan losses was $2.1 million for the first quarter of 2018 compared with $0.2 million for the first quarter of 2017. The increase in provision for loan losses is due primarily to growth in loans held for investment and a $1.1 million increase in specific reserves on classified loans.  The Company incurred net recoveries of $0.4 million in the first quarter of 2018 compared with net charge-offs of $0.3 million in the first quarter of 2017.

Noninterest Income

Noninterest income was $4.3 million for the first quarter of 2018 compared with $4.1 million the same period a year ago.   The increase was primarily due to an increase in card processing fees and service charges on deposit accounts, offset by lower mortgage banking income.

Noninterest Expense

Noninterest expense was $16.7 million for the first quarter of 2018 compared with $12.4 million for the first quarter of 2017.  Noninterest expense for the first quarter of 2018 included $0.3 million in non-recurring costs associated with the acquisition of the Utah branches of Banner Bank and merger of Town & Country Bank.  In addition, noninterest expense for the first quarter of 2018 increased as a result of $2.5 million of higher salaries and employee benefits primarily from the addition of employees retained from the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank, and $0.4 million of higher occupancy, equipment and depreciation costs associated with the net increase of five branches from these transactions.

3

 

 


The Company’s efficiency ratio was 55.02% for the first quarter of 2018 compared with 56.81% for the first quarter of 2017.  The Company’s efficiency ratio from core operations was 53.86% for the first quarter of 2018 compared with 56.81% for the first quarter of 2017(NG).

Income Tax Provision

Income tax expense was $2.6 million for the first quarter of 2018 compared with $2.7 million for the first quarter of 2017.  The effective tax rate for the first quarter of 2018 was 22.1% compared with 29.6% for the same period a year earlier.  The lower effective tax rate in 2018 compared with 2017 is the result of the reduction in the federal corporate tax rate to a flat rate of 21%, the reduction of the Utah state corporate tax rate to 4.95% as well as tax benefits related to tax-deductible stock compensation expense.

Loans and Credit Quality

Loans held for investment increased $536 million, or 46.48%, to $1.69 billion at March 31, 2018 compared with $1.15 billion at March 31, 2017.  Average loans grew $527 million, or 46.38%, to $1.66 billion for the quarter ended March 31, 2018 compared with $1.14 billion for the quarter ended March 31, 2017.  The increase in loans held for investment was both the result of organic growth as well as loans purchased with the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank.

Non-performing assets increased to $7.4 million at March 31, 2018 compared with $5.9 million at March 31, 2017.  Non-performing assets to total assets were 0.34% at March 31, 2018 compared with 0.35% at March 31, 2017.  The allowance for loan losses to loans held for investment was 1.23% at March 31, 2018 compared with 1.44% at March 31, 2017.  In accordance with acquisition accounting, loans acquired from the Utah branches of Banner Bank and Town & Country Bank were recorded at their estimated fair value, which resulted in a net discount to the loans’ contractual amounts, a portion of which reflects a discount for possible credit losses. Credit discounts are included in the determination of fair value, and as a result, no allowance for loan and lease losses is recorded for acquired loans at the acquisition date.  The discount recorded on the acquired loans is not reflected in the allowance for loan losses or related allowance coverage ratios.  Remaining discounts on acquired loans was $10.5 million at March 31, 2018.


4

 

 


Deposits and Liabilities

Total deposits increased $338 million, or 22.99%, to $1.81 billion at March 31, 2018 compared with $1.47 billion at March 31, 2017.  The increase in total deposits was the result of both organic growth as well as the assumption of deposits from the Utah branches of Banner Bank and Town & Country Bank. Non-interest-bearing deposits were 36.78% of total deposits as of March 31, 2018 compared with 31.52% as of March 31, 2017.  

Shareholders’ Equity

Shareholders’ equity increased by $29.6 million to $264 million at March 31, 2018 compared with $234 million at March 31, 2017. The increase resulted primarily from the exchange of Town & Country shares for 466,546 PUB common shares, and from net income earned during the intervening periods, net of cash dividends paid to shareholders.

Conference Call and Webcast

Management will conduct a live conference call and webcast for investors, analysts and the public relating to the Company's results for the first quarter of 2018 at 11:00 a.m. Eastern time on Thursday, April 26, 2018. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 888-317-6003 (international calls 412-317-6061) and the participant entry number is 0466785. Please dial in 10-15 minutes early so the name and company information can be collected prior to the start of the conference.  To participate in the webcast, log on to:

http://services.choruscall.com/links/pub180426.html.

If you are unable to participate during the live webcast, the call will be archived on our website www.peoplesutah.com or at the same URL above until May 26, 2018. Forward-looking and other material information may be discussed on this conference call.

Forward-Looking Statements

Statements in this release that are based on information other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date

5

 

 


Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include: (i) market and economic conditions; (ii) capital sufficiency; (iii) operational, liquidity, interest rate and credit risks; (iv) deterioration of asset quality; (v) achieving loan and deposit growth; (vi) increased competition; (vii) adequacy of reserves; (viii) investments in new branches and new business opportunities; and (ix) changes in the regulatory or legal environment; as well as other factors discussed in the section titled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission.

The foregoing factors should not be construed as exhaustive. The Company does not intend, or undertake any obligation to publicly update these forward-looking statements, except as required by law.

About People’s Utah Bancorp

People’s Utah Bancorp is the holding company for People’s Intermountain Bank.  People’s Intermountain Bank is a full-service community bank providing loans, deposit and cash management services to individuals and businesses. The Company offers its clients direct access to decision makers, unparalleled responsiveness, seasoned relationship managers, and technology solutions. People’s Intermountain Bank has 26 locations in three banking divisions, Bank of American Fork, Lewiston State Bank, and People’s Town & Country Bank; a leasing division, GrowthFunding Equipment Finance; and a mortgage division, People’s Intermountain Bank Mortgage. The Company has been serving communities in Utah and southern Idaho for more than 100 years. More information about PUB is available at www.peoplesutah.com.

 

Investor Relations Contact:

Mark K. Olson

Executive Vice President and Chief Financial Officer

1 East Main Street

American Fork UT 84003

investorrelations@peoplesutah.com

Phone: 801-642-3998

 


6

 

 


PEOPLE’S UTAH BANCORP

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

Three Months Ended

 

(Dollars in thousands, except share

 

March 31,

 

 

December 31,

 

 

March 31,

 

and per share data)

 

2018

 

 

2017

 

 

2017

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

25,810

 

 

$

23,332

 

 

$

16,853

 

Interest and dividends on investments

 

 

1,656

 

 

 

1,688

 

 

 

1,705

 

Total interest income

 

 

27,466

 

 

 

25,020

 

 

 

18,558

 

Interest expense

 

 

1,495

 

 

 

1,073

 

 

 

766

 

Net interest income

 

 

25,971

 

 

 

23,947

 

 

 

17,792

 

Provision for loan losses

 

 

2,050

 

 

 

750

 

 

 

200

 

Net interest income after provision for loan losses

 

 

23,921

 

 

 

23,197

 

 

 

17,592

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

673

 

 

 

695

 

 

 

536

 

Card processing

 

 

1,326

 

 

 

1,377

 

 

 

1,124

 

Mortgage banking

 

 

1,638

 

 

 

1,911

 

 

 

1,979

 

Net loss on sale of investment securities

 

 

-

 

 

 

-

 

 

 

(13

)

Other operating

 

 

657

 

 

 

543

 

 

 

486

 

Total non-interest income

 

 

4,294

 

 

 

4,526

 

 

 

4,112

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

10,423

 

 

 

9,850

 

 

 

7,967

 

Occupancy, equipment and depreciation

 

 

1,543

 

 

 

1,458

 

 

 

1,117

 

Data processing

 

 

870

 

 

 

812

 

 

 

675

 

FDIC premiums

 

 

329

 

 

 

181

 

 

 

126

 

Card processing

 

 

603

 

 

 

578

 

 

 

529

 

Marketing and advertising

 

 

446

 

 

 

427

 

 

 

262

 

Acquisition-related costs

 

 

349

 

 

 

4,124

 

 

 

-

 

Other

 

 

2,088

 

 

 

2,244

 

 

 

1,767

 

Total non-interest expense

 

 

16,651

 

 

 

19,674

 

 

 

12,443

 

Income before income tax expense

 

 

11,564

 

 

 

8,049

 

 

 

9,261

 

Income tax expense

 

 

2,560

 

 

 

7,456

 

 

 

2,740

 

Net income

 

$

9,004

 

 

$

593

 

 

$

6,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.48

 

 

$

0.03

 

 

$

0.36

 

Diluted

 

$

0.48

 

 

$

0.03

 

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,598,436

 

 

 

18,276,788

 

 

 

17,884,026

 

Diluted

 

 

18,937,637

 

 

 

18,722,132

 

 

 

18,316,331

 

 

 


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PEOPLE’S UTAH BANCORP

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(Dollars in thousands, except share data)

 

2018

 

 

2017

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

32,267

 

 

$

36,235

 

 

$

25,773

 

Interest bearing deposits

 

 

9,268

 

 

 

13,158

 

 

 

62,171

 

Federal funds sold

 

 

338

 

 

 

1,634

 

 

 

2,884

 

Total cash and cash equivalents

 

 

41,873

 

 

 

51,027

 

 

 

90,828

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale, at fair value

 

 

249,534

 

 

 

263,056

 

 

 

334,249

 

Held to maturity, at historical cost

 

 

73,888

 

 

 

74,654

 

 

 

78,041

 

Total investment securities

 

 

323,422

 

 

 

337,710

 

 

 

412,290

 

Non-marketable equity securities

 

 

5,711

 

 

 

3,706

 

 

 

1,959

 

Loans held for sale

 

 

10,618

 

 

 

10,871

 

 

 

13,053

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

 

1,687,530

 

 

 

1,627,444

 

 

 

1,152,030

 

Allowance for loan losses

 

 

(20,731

)

 

 

(18,303

)

 

 

(16,644

)

Total loans held for investment, net

 

 

1,666,799

 

 

 

1,609,141

 

 

 

1,135,386

 

Premises and equipment, net

 

 

29,734

 

 

 

30,399

 

 

 

22,701

 

Goodwill

 

 

25,344

 

 

 

26,008

 

 

 

-

 

Bank-owned life insurance

 

 

25,964

 

 

 

23,566

 

 

 

19,842

 

Deferred income tax assets

 

 

10,005

 

 

 

8,827

 

 

 

9,731

 

Accrued interest receivable

 

 

7,616

 

 

 

7,594

 

 

 

5,779

 

Other intangibles

 

 

3,744

 

 

 

3,854

 

 

 

533

 

Other real estate owned

 

 

-

 

 

 

994

 

 

 

245

 

Other assets

 

 

12,608

 

 

 

9,832

 

 

 

5,301

 

Total assets

 

$

2,163,438

 

 

$

2,123,529

 

 

$

1,717,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

664,438

 

 

$

641,124

 

 

$

462,886

 

Interest bearing deposits

 

 

1,141,887

 

 

 

1,173,508

 

 

 

1,005,779

 

Total deposits

 

 

1,806,325

 

 

 

1,814,632

 

 

 

1,468,665

 

Short-term borrowings

 

 

79,000

 

 

 

40,000

 

 

 

3,372

 

Accrued interest payable

 

 

354

 

 

 

353

 

 

 

279

 

Other liabilities

 

 

13,960

 

 

 

11,126

 

 

 

11,087

 

Total liabilities

 

 

1,899,639

 

 

 

1,866,111

 

 

 

1,483,403

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares, $0.01 par value

 

 

-

 

 

 

-

 

 

 

-

 

Common shares, $0.01 par value

 

 

187

 

 

 

185

 

 

 

179

 

Additional paid-in capital

 

 

85,430

 

 

 

84,532

 

 

 

69,256

 

Retained earnings

 

 

182,136

 

 

 

174,804

 

 

 

165,782

 

Accumulated other comprehensive income

 

 

(3,954

)

 

 

(2,103

)

 

 

(972

)

Total shareholders’ equity

 

 

263,799

 

 

 

257,418

 

 

 

234,245

 

Total liabilities and shareholders’ equity

 

$

2,163,438

 

 

$

2,123,529

 

 

$

1,717,648

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

18,674,232

 

 

 

18,511,931

 

 

 

17,925,284

 

 

 

8

 

 


PEOPLE’S UTAH BANCORP

SUMMARY FINANCIAL INFORMATION

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(Dollars in thousands, except share data)

 

2018

 

 

2017

 

 

2017

 

Selected Balance Sheet Information:

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

14.13

 

 

$

13.91

 

 

$

13.07

 

Tangible book value per share

 

$

12.57

 

 

$

12.29

 

 

$

13.04

 

Non-performing assets to total assets

 

 

0.34

%

 

 

0.18

%

 

 

0.35

%

Allowance for loan losses to loans held for investment

 

 

1.23

%

 

 

1.12

%

 

 

1.44

%

Loans to Deposits

 

 

92.86

%

 

 

89.27

%

 

 

78.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

7,398

 

 

$

2,899

 

 

$

5,703

 

Non-performing assets

 

 

7,398

 

 

 

3,893

 

 

 

5,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital (1)

 

 

11.26

%

 

 

11.46

%

 

 

14.10

%

Total risk-based capital (1)

 

 

14.71

%

 

 

14.67

%

 

 

20.11

%

Average equity to average assets

 

 

12.20

%

 

 

12.56

%

 

 

13.93

%

Tangible common equity to tangible assets (3)

 

 

11.00

%

 

 

10.87

%

 

 

13.61

%

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2018

 

 

2017

 

 

2017

 

Selected Financial Information:

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.48

 

 

$

0.03

 

 

$

0.36

 

Diluted earnings per share

 

$

0.48

 

 

$

0.03

 

 

$

0.36

 

Net interest margin (2)

 

 

5.22

%

 

 

4.95

%

 

 

4.55

%

Efficiency ratio

 

 

55.02

%

 

 

69.10

%

 

 

56.81

%

Non-interest income to average assets

 

 

0.81

%

 

 

0.88

%

 

 

1.00

%

Non-interest expense to average assets

 

 

3.15

%

 

 

3.83

%

 

 

3.03

%

Return on average assets

 

 

1.70

%

 

 

0.12

%

 

 

1.59

%

Return on average equity

 

 

13.96

%

 

 

0.92

%

 

 

11.39

%

Net charge-offs / (recoveries)

 

 

(378

)

 

 

56

 

 

 

271

 

Annualized net charge-offs / (recoveries) to average loans

 

 

-0.09

%

 

 

0.01

%

 

 

0.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances:

 

 

 

 

 

 

 

 

 

 

 

 

Average loans

 

$

1,662,515

 

 

$

1,543,261

 

 

$

1,135,689

 

Average earning assets

 

 

2,017,090

 

 

 

1,920,063

 

 

 

1,585,312

 

Average total assets

 

 

2,143,556

 

 

 

2,035,854

 

 

 

1,667,071

 

Average shareholders’ equity

 

 

261,608

 

 

 

255,679

 

 

 

232,269

 

________________________________

 

(1)

Tier 1 leverage capital and Total risk-based capital as of March 31, 2018 are estimates.

 

 

(2)

Net interest margin is defined as net interest income divided by average earning assets.

 

 

(3)

Represents the sum of total shareholders’ equity less intangible assets all divided by the sum of total assets less intangible assets. Intangible assets were $29,088,000, $29,862,000 and $533,000 at March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

 

9

 

 


PEOPLE’S UTAH BANCORP

SELECTED AVERAGE BALANCES AND YIELDS

 

Three Months Ended

 

 

 

March 31, 2018

 

 

March 31, 2017

 

 

 

 

 

 

 

Interest

 

 

Average

 

 

 

 

 

 

Interest

 

 

Average

 

 

 

Average

 

 

Income/

 

 

Yield/

 

 

Average

 

 

Income/

 

 

Yield/

 

(Dollars in thousands, except footnotes)

 

Balance

 

 

Expense

 

 

Rate

 

 

Balance

 

 

Expense

 

 

Rate

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest earning deposits in other banks and federal funds sold

 

$

13,458

 

 

$

45

 

 

 

1.36

%

 

$

40,849

 

 

$

79

 

 

 

0.79

%

Securities: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable securities

 

 

252,491

 

 

 

1,214

 

 

 

1.95

%

 

 

314,779

 

 

 

1,201

 

 

 

1.55

%

Non-taxable securities (2)

 

 

82,518

 

 

 

382

 

 

 

1.88

%

 

 

92,164

 

 

 

422

 

 

 

1.86

%

Total securities

 

 

335,009

 

 

 

1,596

 

 

 

1.93

%

 

 

406,943

 

 

 

1,623

 

 

 

1.62

%

Loans (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate term

 

 

854,982

 

 

 

12,164

 

 

 

5.77

%

 

 

587,854

 

 

 

8,009

 

 

 

5.52

%

Construction and land development

 

 

366,739

 

 

 

6,875

 

 

 

7.60

%

 

 

236,238

 

 

 

4,400

 

 

 

7.55

%

Commercial and industrial

 

 

314,027

 

 

 

5,090

 

 

 

6.57

%

 

 

210,563

 

 

 

3,216

 

 

 

6.19

%

Residential and home equity

 

 

106,910

 

 

 

1,336

 

 

 

5.07

%

 

 

83,206

 

 

 

974

 

 

 

4.75

%

Consumer and other

 

 

19,857

 

 

 

345

 

 

 

7.05

%

 

 

17,828

 

 

 

254

 

 

 

5.77

%

Total loans

 

 

1,662,515

 

 

 

25,810

 

 

 

6.30

%

 

 

1,135,689

 

 

 

16,853

 

 

 

6.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-marketable equity securities

 

 

6,108

 

 

 

15

 

 

 

1.01

%

 

 

1,831

 

 

 

3

 

 

 

0.76

%

Total interest earning assets

 

 

2,017,090

 

 

$

27,466

 

 

 

5.52

%

 

 

1,585,312

 

 

$

18,558

 

 

 

4.75

%

Allowance for loan losses

 

 

(18,715

)

 

 

 

 

 

 

 

 

 

 

(16,769

)

 

 

 

 

 

 

 

 

Non-interest earning assets

 

 

145,181

 

 

 

 

 

 

 

 

 

 

 

98,528

 

 

 

 

 

 

 

 

 

Total average assets

 

$

2,143,556

 

 

 

 

 

 

 

 

 

 

$

1,667,071

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and savings accounts

 

$

718,242

 

 

$

451

 

 

 

0.25

%

 

$

659,484

 

 

$

438

 

 

 

0.27

%

Money market accounts

 

 

224,322

 

 

 

157

 

 

 

0.28

%

 

 

174,456

 

 

 

105

 

 

 

0.24

%

Certificates of deposit, $100,000 and over

 

 

199,549

 

 

 

459

 

 

 

0.93

%

 

 

156,310

 

 

 

222

 

 

 

0.58

%

Total interest bearing deposits

 

 

1,142,113

 

 

 

1,067

 

 

 

0.38

%

 

 

990,250

 

 

 

765

 

 

 

0.31

%

Short-term borrowings

 

 

100,555

 

 

 

428

 

 

 

1.73

%

 

 

3,233

 

 

 

1

 

 

 

0.18

%

Total interest bearing liabilities

 

 

1,242,668

 

 

$

1,495

 

 

 

0.49

%

 

 

993,483

 

 

$

766

 

 

 

0.31

%

Non-interest bearing deposits

 

 

628,869

 

 

 

 

 

 

 

 

 

 

 

431,360

 

 

 

 

 

 

 

 

 

Total funding

 

 

1,871,537

 

 

$

1,495

 

 

 

0.32

%

 

 

1,424,843

 

 

$

766

 

 

 

0.22

%

Other non-interest bearing liabilities

 

 

10,411

 

 

 

 

 

 

 

 

 

 

 

9,959

 

 

 

 

 

 

 

 

 

Shareholders’ equity