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Section 1: 8-K (8-K)

pub-8k_20180930.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):  October 24, 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 October 24, 2018, the Company issued a press release announcing its financial results for the quarter ended September 30, 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 October 24, 2018, announcing financial results for the quarter ended September 30, 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: October 24, 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 THIRD QUARTER RESULTS AND ANNOUNCES QUARTERLY DIVIDEND PAYMENT

Third Quarter Highlights

Total deposits grew $344 million, or 22.5%, to $1.87 billion year-over-year

Loans held for investment grew $503 million, or 41.4%, to $1.72 billion year-over-year

Net interest margin widened 48 bps to 5.25% year-over-year

Earnings per diluted share increased 61.8% to $0.55 for the third quarter of 2018 year-over-year

Return on average assets of 1.91% for the third quarter of 2018

Return on average equity of 14.97% for the third quarter of 2018

AMERICAN FORK, UTAH, October 24, 2018 – People’s Utah Bancorp (the “Company” or “PUB”) (Nasdaq: PUB) reported net income of $10.5 million for the third quarter of 2018 compared with $10.5 million for the second quarter of 2018, and $6.2 million for the third quarter of 2017.  Diluted earnings per common share were $0.55 for the third quarter of 2018 compared with $0.55 for the second quarter of 2018, and $0.34 for the third quarter of 2017.  For the nine months ended September 30, 2018 net income was $30.0 million, or $1.58 per diluted common share, compared with $19.3 million, or $1.05 per diluted common share, for the same period a year earlier.    

The Company has excluded non-recurring income including gains or losses on sale of investment securities; 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; and higher income tax expense related to the revaluation of its deferred income tax assets recorded in 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.

Net income from core operations was $10.4 million, or $0.55 per diluted common share, for the third quarter of 2018 compared with $10.2 million, or $0.54 per diluted common share, for the second quarter of 2018 and $6.9 million, or $0.38 per diluted common share, for the third quarter of 2017(NG).  For the nine months ended September 30, 2018 net income from core operations was $29.9 million, or $1.57 per diluted common share, compared with $20.0 million, or $1.09 per diluted common share, for the same period a year earlier(NG).

 

________________________________

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

 


Return on average assets was 1.91% for the third quarter of 2018 compared with 1.93% for second quarter of 2018, and 1.42% for the third quarter of 2017.  Return on average assets from core operations for the third quarter 2018 was 1.89% compared with 1.88% for the second quarter of 2018, and 1.57% for the third quarter of 2017(NG).  

Return on average equity was 14.97% for the third quarter of 2018 compared with 15.60% for the second quarter of 2018, and 10.14% for the third quarter of 2017.  Return on average equity from core operations was 14.84% for the third quarter of 2018 compared with 15.22% for the second quarter of 2018, and 11.24% for the third quarter of 2017(NG).  

The Board of Directors declared a quarterly dividend payment of $0.11 per common share. The dividend will be payable on November 13, 2018 to shareholders of record on November 6, 2018. The dividend payout ratio for earnings for the quarter ended September 30, 2018 was 19.6%.  This continues the over 50-year trend of paying dividends by the Company.

“People’s Utah Bancorp achieved strong financial performance in the third quarter.  We experienced widening net interest margins and solid loan and deposit growth from a year ago both organically and through our acquisition transactions,” said Len Williams, President and Chief Executive Officer.  “We are pleased that we achieved $90 million in core deposit growth in the third quarter and maintained our net interest margins from the second quarter of 2018, despite experiencing greater deposit pricing pressures and strong competitive demand for deposits from both banks and credit unions.  We anticipate continued competition for deposits and deposit pricing pressures, consistent with our peers, in the near term.  Our focus continues to be on growing our business organically and diversifying our loan portfolio.  The economic outlook for the Utah market continues to be strong, which we believe provides us further opportunities to grow our organization.  We continue to actively evaluate potential acquisition opportunities throughout the Intermountain West.”

Net Interest Income and Margin

Net interest income grew 36.5%, or $7.3 million, to $27.2 million for the third quarter of 2018 compared with $19.9 million for the third quarter of 2017.  The increase is primarily the result of average interest-earning assets growing 24.0%, or $397 million, and yields on interest-earning assets increasing 67 basis points for the same comparable periods to 5.62% for the third quarter of 2018. Higher yields on interest-earning assets were primarily the result of yields on loans increasing 19 basis points to 6.33% for the same comparable periods and the percentage of loans to total interest-earning assets increasing to 83.7% for the third quarter of 2018 compared with 73.5% for the third quarter of 2017.  

 

 

2


Total cost of interest-bearing liabilities increased 33 basis points to 0.63% for the third quarter of 2018 and is the result of the cost of interest-bearing deposits increasing 26 basis points to 0.56% for the third quarter of 2018 compared with the same period a year earlier, and an increase in average short-term borrowing of $45.8 million at a borrowing rate of 2.25% for the third quarter of 2018.  The Company expects the increase in cost of interest-bearing deposits to continue to accelerate over the next several quarters as financial institutions increase their competitive deposit pricing.

Acquisition accounting adjustments, including the accretion of loan discounts and amortization of certificates of deposit premium, added 5 basis points to the net interest margin in the third quarter of 2018.

Provision for Loan Losses

Provision for loan losses was $1.9 million for the third quarter of 2018 compared with $0.9 million for the third quarter of 2017. The increase in provision for loan losses is due primarily to the increase in allowance for loan losses to loans held for investment, excluding specific reserves, offset by a $1.3 million decrease in specific reserves on classified loans.  The Company incurred net charge-offs of $0.9 million in the third quarter of 2018 compared with net charge-offs of $0.6 million in the third quarter of 2017.  

Noninterest Income

Noninterest income was $3.8 million for the third quarter of 2018 compared with $3.0 million the same period a year ago.   The increase was primarily due to a loss on sale of securities a year ago; an increase in card processing fees and service charges on deposit accounts compared with a year earlier; offset by lower mortgage banking income year-over-year.

Noninterest Expense

Noninterest expense was $15.3 million for the third quarter of 2018 compared with $13.1 million for the third quarter of 2017.  Noninterest expense for the third quarter of 2018 increased as a result of $1.1 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, $0.3 million of higher occupancy, equipment and depreciation costs associated with the net increase of five branches from these transactions, and $0.2 million in higher data processing costs associated with an increase in total accounts from both organic growth and acquisition transactions.


3


The Company’s efficiency ratio was 49.33% for the third quarter of 2018 compared with 57.14% for the third quarter of 2017.  The Company’s efficiency ratio from core operations was 49.71% for the third quarter of 2018 compared with 53.89% for the third quarter of 2017(NG).

Income Tax Provision

Income tax expense was $3.3 million for the third quarter of 2018 compared with $2.7 million for the third quarter of 2017.  The effective tax rate for the third quarter of 2018 was 23.9% compared with 30.2% 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 $503 million, or 41.4%, to $1.72 billion at September 30, 2018 compared with $1.22 billion at September 30, 2017.  Average loans grew $501 million, or 41.2%, to $1.72 billion for the quarter ended September 30, 2018 compared with $1.22 billion for the quarter ended September 30, 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 loans increased to $5.8 million at September 30, 2018 compared with $4.1 million at September 30, 2017.  Non-performing loans to total loans were 0.34% at September 30, 2018 compared with 0.34% at September 30, 2017.  Non-performing assets increased to $8.8 million at September 30, 2018 compared with $4.5 million at September 30, 2017.  Non-performing assets to total assets were 0.40% at September 30, 2018 compared with 0.25% at September 30, 2017.  The allowance for loan losses to loans held for investment was 1.36% at September 30, 2018 compared with 1.45% at September 30, 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 allowance for loan losses to loans held for investment, excluding purchased loans was 1.66% at September 30, 2018.  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 $9.5 million at September 30, 2018.


4


Deposits and Liabilities

Total deposits increased $344 million, or 22.5%, to $1.87 billion at September 30, 2018 compared with $1.53 billion at September 30, 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 36.2% of total deposits as of September 30, 2018 compared with 34.5% as of September 30, 2017.  

Shareholders’ Equity

Shareholders’ equity increased by $34.2 million to $280 million at September 30, 2018 compared with $245 million at September 30, 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 third quarter of 2018 at 12:00 p.m. Eastern time on Thursday, October 25, 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 0621347. 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/pub181025.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 November 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.

 

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

 

 

Nine Months Ended

 

(Dollars in thousands, except share

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

and per share data)

 

2018

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

27,420

 

 

$

27,073

 

 

$

18,843

 

 

$

80,276

 

 

$

53,610

 

Interest and dividends on investments

 

 

1,679

 

 

 

1,683

 

 

 

1,820

 

 

 

5,018

 

 

 

5,327

 

Total interest income

 

 

29,099

 

 

 

28,756

 

 

 

20,663

 

 

 

85,294

 

 

 

58,937

 

Interest expense

 

 

1,917

 

 

 

1,778

 

 

 

754

 

 

 

5,190

 

 

 

2,269

 

Net interest income

 

 

27,182

 

 

 

26,978

 

 

 

19,909

 

 

 

80,104

 

 

 

56,668

 

Provision for loan losses

 

 

1,925

 

 

 

1,475

 

 

 

900

 

 

 

5,450

 

 

 

2,000

 

Net interest income after provision for loan losses

 

 

25,257

 

 

 

25,503

 

 

 

19,009

 

 

 

74,654

 

 

 

54,668

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking

 

 

1,668

 

 

 

1,505

 

 

 

1,686

 

 

 

4,811

 

 

 

5,625

 

Card processing

 

 

826

 

 

 

799

 

 

 

704

 

 

 

2,347

 

 

 

1,991

 

Service charges on deposit accounts

 

 

737

 

 

 

704

 

 

 

636

 

 

 

2,114

 

 

 

1,750

 

Net gain (loss) on sale of investment securities

 

 

-

 

 

 

333

 

 

 

(486

)

 

 

336

 

 

 

(499

)

Other

 

 

563

 

 

 

725

 

 

 

500

 

 

 

1,970

 

 

 

1,602

 

Total non-interest income

 

 

3,794

 

 

 

4,066

 

 

 

3,040

 

 

 

11,578

 

 

 

10,469

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,885

 

 

 

10,196

 

 

 

8,813

 

 

 

30,504

 

 

 

24,542

 

Occupancy, equipment and depreciation

 

 

1,476

 

 

 

1,411

 

 

 

1,164

 

 

 

4,430

 

 

 

3,369

 

Data processing

 

 

890

 

 

 

1,063

 

 

 

650

 

 

 

2,823

 

 

 

1,986

 

Marketing and advertising

 

 

342

 

 

 

321

 

 

 

343

 

 

 

1,109

 

 

 

954

 

FDIC premiums

 

 

239

 

 

 

299

 

 

 

135

 

 

 

867

 

 

 

391

 

Acquisition-related costs

 

 

(118

)

 

 

1

 

 

 

484

 

 

 

232

 

 

 

660

 

Other

 

 

2,566

 

 

 

2,532

 

 

 

1,525

 

 

 

7,186

 

 

 

4,961

 

Total non-interest expense

 

 

15,280

 

 

 

15,823

 

 

 

13,114

 

 

 

47,151

 

 

 

36,863

 

Income before income tax expense

 

 

13,771

 

 

 

13,746

 

 

 

8,935

 

 

 

39,081

 

 

 

28,274

 

Income tax expense

 

 

3,288

 

 

 

3,279

 

 

 

2,697

 

 

 

9,127

 

 

 

9,021

 

Net income

 

$

10,483

 

 

$

10,467

 

 

$

6,238

 

 

$

29,954

 

 

$

19,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.56

 

 

$

0.56

 

 

$

0.35

 

 

$

1.60

 

 

$

1.07

 

Diluted

 

$

0.55

 

 

$

0.55

 

 

$

0.34

 

 

$

1.58

 

 

$

1.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,713,410

 

 

 

18,679,908

 

 

 

17,976,066

 

 

 

18,664,339

 

 

 

17,933,010

 

Diluted

 

 

19,010,600

 

 

 

18,989,176

 

 

 

18,396,664

 

 

 

18,979,405

 

 

 

18,355,136

 

 


7


PEOPLE’S UTAH BANCORP

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands, except share data)

 

2018

 

 

2018

 

 

2017

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

27,231

 

 

$

33,484

 

 

$

36,235

 

 

$

26,986

 

Interest-bearing deposits

 

 

23,005

 

 

 

17,930

 

 

 

13,158

 

 

 

173,778

 

Federal funds sold

 

 

4,697

 

 

 

908

 

 

 

1,634

 

 

 

6,101

 

Total cash and cash equivalents

 

 

54,933

 

 

 

52,322

 

 

 

51,027

 

 

 

206,865

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale, at fair value

 

 

255,021

 

 

 

236,699

 

 

 

263,056

 

 

 

226,808

 

Held to maturity, at historical cost

 

 

67,148

 

 

 

67,922

 

 

 

74,654

 

 

 

75,808

 

Total investment securities

 

 

322,169

 

 

 

304,621

 

 

 

337,710

 

 

 

302,616

 

Non-marketable equity securities

 

 

4,231

 

 

 

6,151

 

 

 

3,706

 

 

 

1,959

 

Loans held for sale

 

 

8,467

 

 

 

11,058

 

 

 

10,871

 

 

 

10,742

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

 

1,718,403

 

 

 

1,691,959

 

 

 

1,627,444

 

 

 

1,215,573

 

Allowance for loan losses

 

 

(23,309

)

 

 

(22,308

)

 

 

(18,303

)

 

 

(17,609

)

Total loans held for investment, net

 

 

1,695,094

 

 

 

1,669,651

 

 

 

1,609,141

 

 

 

1,197,964

 

Premises and equipment, net

 

 

36,683

 

 

 

29,335

 

 

 

30,399

 

 

 

26,271

 

Goodwill

 

 

25,673

 

 

 

25,673

 

 

 

26,008

 

 

 

-

 

Bank-owned life insurance

 

 

26,276

 

 

 

26,120

 

 

 

23,566

 

 

 

20,096

 

Deferred income tax assets

 

 

11,224

 

 

 

10,764

 

 

 

8,827

 

 

 

10,234

 

Accrued interest receivable

 

 

8,766

 

 

 

7,658

 

 

 

7,594

 

 

 

6,186

 

Other intangibles

 

 

3,523

 

 

 

3,633

 

 

 

3,854

 

 

 

509

 

Other real estate owned

 

 

2,985

 

 

 

-

 

 

 

994

 

 

 

325

 

Other assets

 

 

12,829

 

 

 

14,784

 

 

 

9,832

 

 

 

6,369

 

Total assets

 

$

2,212,853

 

 

$

2,161,770

 

 

$

2,123,529

 

 

$

1,790,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

677,379

 

 

$

646,574

 

 

$

641,124

 

 

$

527,236

 

Interest-bearing deposits

 

 

1,194,553

 

 

 

1,135,366

 

 

 

1,173,508

 

 

 

1,000,945

 

Total deposits

 

 

1,871,932

 

 

 

1,781,940

 

 

 

1,814,632

 

 

 

1,528,181

 

Short-term borrowings

 

 

42,000

 

 

 

90,000

 

 

 

40,000

 

 

 

3,773

 

Accrued interest payable

 

 

424

 

 

 

369

 

 

 

353

 

 

 

259

 

Other liabilities

 

 

18,865

 

 

 

17,862

 

 

 

11,126

 

 

 

12,498

 

Total liabilities

 

 

1,933,221

 

 

 

1,890,171

 

 

 

1,866,111

 

 

 

1,544,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares, $0.01 par value

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common shares, $0.01 par value

 

 

187

 

 

 

187

 

 

 

185

 

 

 

180

 

Additional paid-in capital

 

 

86,098

 

 

 

85,620

 

 

 

84,532

 

 

 

70,307

 

Retained earnings

 

 

199,161

 

 

 

190,735

 

 

 

174,804

 

 

 

175,462

 

Accumulated other comprehensive loss

 

 

(5,814

)

 

 

(4,943

)

 

 

(2,103

)

 

 

(524

)

Total shareholders’ equity

 

 

279,632

 

 

 

271,599

 

 

 

257,418

 

 

 

245,425

 

Total liabilities and shareholders’ equity

 

$

2,212,853

 

 

$

2,161,770

 

 

$

2,123,529

 

 

$

1,790,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

18,719,496

 

 

 

18,683,883

 

 

 

18,511,797

 

 

 

18,022,651

 

8


PEOPLE’S UTAH BANCORP

SUMMARY FINANCIAL INFORMATION

 

 

 

 

 

 

 

September 30,

 

 

June 30,

 

 

December 31,

 

 

September 30,

 

(Dollars in thousands, except share data)

 

2018

 

 

2018

 

 

2017

 

 

2017

 

Selected Balance Sheet Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

14.94

 

 

$

14.54

 

 

$

13.91

 

 

$

13.62

 

Tangible book value per share

 

$

13.38

 

 

$

12.97

 

 

$

12.29

 

 

$

13.59

 

Non-performing loans to total loans

 

 

0.34

%

 

 

0.51

%

 

 

0.18

%

 

 

0.34

%

Non-performing assets to total assets

 

 

0.40

%

 

 

0.40

%

 

 

0.18

%

 

 

0.25

%

Allowance for loan losses to loans held for investment

 

 

1.36

%

 

 

1.32

%

 

 

1.12

%

 

 

1.45

%

Loans to Deposits

 

 

91.01

%

 

 

94.32

%

 

 

89.27

%

 

 

79.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

5,830

 

 

$

8,649

 

 

$

2,899

 

 

$

4,141

 

Non-performing assets

 

 

8,815

 

 

 

8,649

 

 

 

3,893

 

 

 

4,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital (1)

 

 

11.90

%

 

 

11.48

%

 

 

11.46

%

 

 

14.07

%

Total risk-based capital (1)

 

 

15.46

%

 

 

15.22

%

 

 

14.67

%

 

 

20.35

%

Average equity to average assets

 

 

12.76

%

 

 

12.36

%

 

 

13.58

%

 

 

13.98

%

Tangible common equity to tangible assets (3)

 

 

11.47

%

 

 

11.36

%

 

 

10.87

%

 

 

13.69

%

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Selected Financial Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.56

 

 

$

0.56

 

 

$

0.35

 

 

$

1.60

 

 

$

1.07

 

Diluted earnings per share

 

$

0.55

 

 

$

0.55

 

 

$

0.34

 

 

$

1.58

 

 

$

1.05

 

Net interest margin (2)

 

 

5.25

%

 

 

5.26

%

 

 

4.77

%

 

 

5.24

%

 

 

4.68

%

Efficiency ratio

 

 

49.33

%

 

 

50.97

%

 

 

57.14

%

 

 

51.43

%

 

 

54.91

%

Non-interest income to average assets

 

 

0.69

%

 

 

0.75

%

 

 

0.69

%

 

 

0.71

%

 

 

0.82

%

Non-interest expense to average assets

 

 

2.78

%

 

 

2.91

%

 

 

2.98

%

 

 

2.91

%

 

 

2.89

%

Return on average assets

 

 

1.91

%

 

 

1.93

%

 

 

1.42

%

 

 

1.85

%

 

 

1.51

%

Return on average equity

 

 

14.97

%

 

 

15.60

%

 

 

10.14

%

 

 

14.85

%

 

 

10.80

%

Net charge-offs / (recoveries)

 

 

925

 

 

 

(102

)

 

 

562

 

 

 

445

 

 

 

1,106

 

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

 

 

0.21

%

 

 

-0.02

%

 

 

0.18

%

 

 

0.04

%

 

 

0.13

%

________________________________

 

(1)

Tier 1 leverage capital and Total risk-based capital as of September 30, 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 $29,196,000, $29,306,000 and $509,000 at September 30, 2018, June 30, 2018 and September 30, 2017, respectively.

 

9


PEOPLE’S UTAH BANCORP

SELECTED AVERAGE BALANCES AND YIELDS

 

 

Three Months Ended

 

 

 

September 30, 2018

 

 

September 30, 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

 

$

12,426

 

 

$

57

 

 

 

1.84

%

 

$

87,981

 

 

$

283

 

 

 

1.28

%

Securities: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable securities

 

 

243,754

 

 

 

1,180

 

 

 

1.92

%

 

 

260,941

 

 

 

1,116

 

 

 

1.70

%

Non-taxable securities (2)

 

 

74,857

 

 

 

348

 

 

 

1.84

%

 

 

89,001

 

 

 

414

 

 

 

1.85

%

Total securities

 

 

318,611

 

 

 

1,528

 

 

 

1.90

%

 

 

349,942

 

 

 

1,530

 

 

 

1.73

%

Loans (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate term