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Section 1: 8-K (8-K)

pub-8k_20190331.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, 2019

 

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

 

84003

(Address of Principal Executive Offices)

 

(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 Instructions 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 

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. 

 

 

 

 


 

Item 2.02Results of Operations and Financial Condition.

On April 25, 2019, the Company issued a press release announcing its financial results for the quarter ended March 31, 2019 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, 2019, announcing financial results for the quarter ended March 31, 2019 and 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, 2019

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 2019 RESULTS; ANNOUNCES INCREASE IN QUARTERLY DIVIDEND PAYMENT

First Quarter 2019 Highlights

Net interest margin widened 7 bps to 5.29% year-over-year

Earnings per diluted share increased 14.6% to $0.55 year-over-year

Return on average assets improved 14.7% to 1.95% year-over-year

Return on average equity of 14.38% for the first quarter of 2019 even as average equity to average assets grew to 13.55%

YTD average total deposits grew $95.2 million, or 5.4%, to $1.87 billion year-over-year

AMERICAN FORK, UTAH, April 25, 2019 – People’s Utah Bancorp (the “Company” or “PUB”) (Nasdaq: PUB) reported net income of $10.5 million for the first quarter of 2019 compared with $10.7 million for the fourth quarter of 2018, and $9.0 million for the first quarter of 2018.  Diluted earnings per common share were $0.55 for the first quarter of 2019 compared with $0.56 for the fourth quarter of 2018, and $0.48 for the first quarter of 2018.  

Return on average assets was 1.95% for the first quarter of 2019 compared with 1.94% for the fourth quarter of 2018, and 1.70% for the first quarter of 2018.  Return on average equity was 14.38% for the first quarter of 2019 compared with 14.84% for the fourth quarter of 2018, and 13.96% for the first quarter of 2018.  

The Board of Directors declared an increase in the quarterly dividend payment to $0.12 per common share. The dividend will be payable on May 13, 2019 to shareholders of record on May 6, 2019. The dividend payout ratio for earnings for the first quarter of 2019 was 21.8%.  This continues the over 50-year trend of paying dividends by the Company.

“People’s Utah Bancorp achieved another strong quarter with a return on average equity of over 14% as we continue to position, strengthen, and fortify our balance sheet,” said Len Williams, President and Chief Executive Officer.  “We have increased our average equity to average assets ratio from 12.2% a year ago to 13.6% at the end of the first quarter, while also increasing our allowance for loan losses from 1.2% a year ago to 1.6% over the same period.”

1


 

Exhibit 99.1

Mr. Williams continued, “Our net interest margin expanded by 7 basis points to 5.29% for the first quarter of 2019 compared with a year ago, despite experiencing greater deposit pricing pressures and strong competitive demand for deposits.  Our total deposits grew $95.2 million, or 5.4%, as our commercial treasury management team has focused on raising commercial deposits both from existing commercial clients as well as the acquisition of new client relationships.  Seasonal slowdowns, coupled with our increased selectivity and concentration management, has temporarily slowed loan growth; however, we believe this focus will ensure greater strength and safety.  We anticipate that our annualized loan growth will be in the mid-single digits for 2019 as we continue to staff up our C&I business.  The economic outlook for the Utah market continues to be strong relative to the U.S. economy overall, which 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

For the first quarter of 2019, net interest income grew 3.7%, or $1.0 million, to $26.9 million compared with $26.0 million for the same period a year earlier.  The increase is primarily the result of average interest earning assets growing 2.3%, or $46.1 million, and yields on interest earning assets increasing 21 basis points to 5.73% for the same comparable periods. Higher yields on interest earning assets were primarily the result of yields on loans increasing 24 basis points to 6.53% for the same comparable periods, offset by the percentage of loans to total interest earning assets declining to 81.2% for the first quarter of 2019 compared with 82.4% for the first quarter of 2018.  

For the first quarter of 2019, total cost of interest bearing liabilities increased 24 basis points to 0.73% compared with the same period a year ago, and is the result of the cost of interest bearing deposits increasing 34 basis points to 0.72% for the same comparable periods, while short-term borrowing declined $90.7 million, or 90.2%, to $9.8 million with the borrowing rate increasing 90 basis points to 2.63% for the fourth 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 11 basis points to the net interest margin for the first quarter of 2019.

2


 

Exhibit 99.1

Provision for Loan Losses

For the first quarter of 2019, provision for loan losses was $1.6 million compared with $2.1 million for the same period a year earlier. The decrease in provision for loan losses in the first quarter of 2019 is due primarily to a decline in loans held for investment from the fourth quarter of 2018 to the first quarter of 2019 compared with an increase in loans held for investment for the same comparable periods a year ago.  For the first quarter of 2019, the Company incurred net charge-offs of $0.9 million compared with net recoveries of $0.4 million for the same period a year ago.  

Noninterest Income

For the first quarter of 2019, noninterest income was $3.3 million compared with $3.7 million the same period a year ago.   The decrease was primarily due to a $0.2 million decline in mortgage banking income resulting from lower loan originations for the same comparable periods, and a $0.1 million decline in card processing fees due primarily to conversion related costs.

Noninterest Expense

For the first quarter of 2019, noninterest expense was $14.9 million compared with $16.1 million for the same period a year earlier and is primarily the result of $0.5 million in lower salaries and employee benefits, $0.3 million in lower acquisition related costs incurred in 2018, $0.3 million in lower marketing and advertising, and $0.2 million in lower FDIC premiums.  For the first quarter of 2019, the Company’s efficiency ratio was 49.32% compared with 54.1% for the same period a year ago.  

“Our lower marketing and advertising costs are directly the result of us deciding to simplify our branding strategy to a single, unified name for our Bank, a new logo, and a more contemporary look.  We expect to roll out our new single brand strategy around the end of the year and anticipate higher marketing and advertising costs over the next couple of quarters,” said Mr. Williams.

Income Tax Provision

For the first quarter of 2019, income tax expense was $3.3 million compared with $2.6 million for the same period a year earlier.  For the first quarter of 2019, the effective tax rate was 23.8% compared with 22.1% for the same period a year ago.

3


 

Exhibit 99.1

Loans and Credit Quality

Loans held for investment decreased $2.0 million, or 0.1%, to $1.68 billion at March 31, 2019 compared with $1.68 billion at December 31, 2018, and decreased $10.6 million, or 0.6% compared with $1.69 billion at March 31, 2018.  The decline is primarily the result of declines in our acquisition, development, and construction loan portfolio from lower construction loan volumes in the first quarter of 2019.

Average loans grew $12.3 million, or 0.7%, to $1.67 billion for the year ended March 31, 2019 compared with $1.66 billion for the year ended March 31, 2018.

Non-performing loans increased to $4.7 million at March 31, 2019 compared with $4.5 million at December 31, 2018.  Non-performing loans to total loans were 0.28% at March 31, 2019 compared with 0.27% at December 31, 2018.  Non-performing assets increased to $4.7 million at March 31, 2019 compared with $4.5 million at December 31, 2018.  Non-performing assets to total assets remained flat at 0.21% for March 31, 2019 and December 31, 2018.  The allowance for loan losses increased $5.2 million, or 25.0% to $25.9 million at March 31, 2019 compared with the same period a year ago.  The allowance for loan losses to loans held for investment was 1.55% at March 31, 2019 compared with 1.23% at March 31, 2018.  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 $8.3 million at March 31, 2019.

Deposits and Liabilities

Total deposits increased $74.3 million, or 4.0%, to $1.95 billion at March 31, 2019 compared with $1.88 billion at December 31, 2018.  The increase in total deposits was primarily the result of organic commercial deposit growth. Non-interest bearing deposits were 33.6% of total deposits as of March 31, 2019 compared with 34.2% as of December 31, 2018.  

Shareholders’ Equity

Shareholders’ equity increased by $11.2 million to $301 million at March 31, 2019 compared with $290 million at December 31, 2018. The increase resulted primarily from net income earned during the intervening periods, net of cash dividends paid to shareholders.

4


 

Exhibit 99.1

Conference Call and Webcast

Management will host a conference call on Friday, April 26, 2019 at 10:00 a.m. MDT (noon EDT) to discuss the first quarter 2019 results. Interested investors may listen to the call live at www.peoplesutah.com.  Investment professionals are invited to dial 888-317-6003 (international calls 412-317-6061) and the participant entry number is 6307034. Please dial in 10-15 minutes early so the name and company information can be collected prior to the start of the conference.

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 for one month after the call. 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.

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, 2018 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.

 


5


 

Exhibit 99.1

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; 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

[email protected]

Phone: 801-642-3998

6


 

Exhibit 99.1

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)

 

2019

 

 

2018

 

 

2018

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

26,980

 

 

$

28,222

 

 

$

25,783

 

Interest and dividends on investments

 

 

2,172

 

 

 

1,836

 

 

 

1,656

 

Total interest income

 

 

29,152

 

 

 

30,058

 

 

 

27,439

 

Interest expense

 

 

2,245

 

 

 

1,984

 

 

 

1,495

 

Net interest income

 

 

26,907

 

 

 

28,074

 

 

 

25,944

 

Provision for loan losses

 

 

1,550

 

 

 

3,175

 

 

 

2,050

 

Net interest income after provision for loan losses

 

 

25,357

 

 

 

24,899

 

 

 

23,894

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking

 

 

1,417

 

 

 

1,398

 

 

 

1,638

 

Card processing

 

 

615

 

 

 

750

 

 

 

723

 

Service charges on deposit accounts

 

 

657

 

 

 

726

 

 

 

673

 

Net gain on sale of investment securities

 

 

-

 

 

 

-

 

 

 

2

 

Other

 

 

648

 

 

 

677

 

 

 

682

 

Total non-interest income

 

 

3,337

 

 

 

3,551

 

 

 

3,718

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,886

 

 

 

9,398

 

 

 

10,423

 

Occupancy, equipment and depreciation

 

 

1,456

 

 

 

1,580

 

 

 

1,543

 

Data processing

 

 

964

 

 

 

692

 

 

 

870

 

Marketing and advertising

 

 

116

 

 

 

179

 

 

 

446

 

FDIC premiums

 

 

90

 

 

 

152

 

 

 

329

 

Acquisition-related costs

 

 

-

 

 

 

-

 

 

 

349

 

Other

 

 

2,404

 

 

 

2,844

 

 

 

2,088

 

Total non-interest expense

 

 

14,916

 

 

 

14,845

 

 

 

16,048

 

Income before income tax expense

 

 

13,778

 

 

 

13,605

 

 

 

11,564

 

Income tax expense

 

 

3,273

 

 

 

2,927

 

 

 

2,560

 

Net income

 

$

10,505

 

 

$

10,678

 

 

$

9,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.56

 

 

$

0.57

 

 

$

0.48

 

Diluted

 

$

0.55

 

 

$

0.56

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,781,210

 

 

 

18,723,160

 

 

 

18,598,436

 

Diluted

 

 

18,989,565

 

 

 

18,991,767

 

 

 

18,937,637

 

 


7


 

Exhibit 99.1

PEOPLE’S UTAH BANCORP

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

  

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

March 31,

 

(Dollars in thousands, except share data)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

36,659

 

 

$

39,471

 

 

$

27,231

 

 

$

32,267

 

Interest-bearing deposits

 

 

106,467

 

 

 

7,456

 

 

 

23,005

 

 

 

9,268

 

Federal funds sold

 

 

896

 

 

 

1,620

 

 

 

4,697

 

 

 

338

 

Total cash and cash equivalents

 

 

144,022

 

 

 

48,547

 

 

 

54,933

 

 

 

41,873

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale, at fair value

 

 

347,123

 

 

 

280,964

 

 

 

255,021

 

 

 

249,534

 

Held to maturity, at historical cost

 

 

-

 

 

 

65,462

 

 

 

67,148

 

 

 

73,888

 

Total investment securities

 

 

347,123

 

 

 

346,426

 

 

 

322,169

 

 

 

323,422

 

Non-marketable equity securities

 

 

2,623

 

 

 

2,551

 

 

 

4,231

 

 

 

5,711

 

Loans held for sale

 

 

7,184

 

 

 

10,267

 

 

 

8,467

 

 

 

10,618

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for investment

 

 

1,676,889

 

 

 

1,678,902

 

 

 

1,718,403

 

 

 

1,687,530

 

Allowance for loan losses

 

 

(25,923

)

 

 

(25,245

)

 

 

(23,309

)

 

 

(20,731

)

Total loans held for investment, net

 

 

1,650,966

 

 

 

1,653,657

 

 

 

1,695,094

 

 

 

1,666,799

 

Premises and equipment, net

 

 

37,836

 

 

 

36,532

 

 

 

36,683

 

 

 

29,734

 

Goodwill

 

 

25,673

 

 

 

25,673

 

 

 

25,673

 

 

 

25,344

 

Bank-owned life insurance

 

 

26,581

 

 

 

26,433

 

 

 

26,276

 

 

 

25,964

 

Deferred income tax assets

 

 

10,354

 

 

 

11,514

 

 

 

11,224

 

 

 

10,005

 

Accrued interest receivable

 

 

8,593

 

 

 

8,282

 

 

 

8,766

 

 

 

7,616

 

Other intangibles

 

 

3,301

 

 

 

3,412

 

 

 

3,523

 

 

 

3,744

 

Other real estate owned

 

 

-

 

 

 

-

 

 

 

2,985

 

 

 

-

 

Other assets

 

 

6,551

 

 

 

11,000

 

 

 

12,829

 

 

 

12,608

 

Total assets

 

$

2,270,807

 

 

$

2,184,294

 

 

$

2,212,853

 

 

$

2,163,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

655,866

 

 

$

642,594

 

 

$

677,379

 

 

$

664,438

 

Interest-bearing deposits

 

 

1,295,459

 

 

 

1,234,461

 

 

 

1,194,553

 

 

 

1,141,887

 

Total deposits

 

 

1,951,325

 

 

 

1,877,055

 

 

 

1,871,932

 

 

 

1,806,325

 

Short-term borrowings

 

 

-

 

 

 

-

 

 

 

42,000

 

 

 

79,000

 

Accrued interest payable

 

 

521

 

 

 

483

 

 

 

424

 

 

 

354

 

Other liabilities

 

 

17,634

 

 

 

16,594

 

 

 

18,865

 

 

 

13,960

 

Total liabilities

 

 

1,969,480

 

 

 

1,894,132

 

 

 

1,933,221

 

 

 

1,899,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares, $0.01 par value

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common shares, $0.01 par value

 

 

188

 

 

 

187

 

 

 

187

 

 

 

187

 

Additional paid-in capital

 

 

86,892

 

 

 

86,308

 

 

 

86,098

 

 

 

85,430

 

Retained earnings

 

 

216,216

 

 

 

207,779

 

 

 

199,161

 

 

 

182,136

 

Accumulated other comprehensive loss

 

 

(1,969

)

 

 

(4,112

)

 

 

(5,814

)

 

 

(3,954

)

Total shareholders’ equity

 

 

301,327

 

 

 

290,162

 

 

 

279,632

 

 

 

263,799

 

Total liabilities and shareholders’ equity

 

$

2,270,807

 

 

$

2,184,294

 

 

$

2,212,853

 

 

$

2,163,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

18,797,280

 

 

 

18,728,823

 

 

 

18,719,496

 

 

 

18,674,232

 

8


 

Exhibit 99.1

PEOPLE’S UTAH BANCORP

SUMMARY FINANCIAL INFORMATION

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

March 31,

 

(Dollars in thousands, except share data)

 

2019

 

 

2018

 

 

2018

 

 

2018

 

Selected Balance Sheet Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

16.03

 

 

$

15.49

 

 

$

14.94

 

 

$

14.13

 

Tangible book value per share

 

$

14.49

 

 

$

13.94

 

 

$

13.38

 

 

$

12.57

 

Non-performing loans to total loans

 

 

0.28

%

 

 

0.27

%

 

 

0.34

%

 

 

0.44

%

Non-performing assets to total assets

 

 

0.21

%

 

 

0.21

%

 

 

0.40

%

 

 

0.34

%

Allowance for loan losses to loans held for investment

 

 

1.55

%

 

 

1.50

%

 

 

1.36

%

 

 

1.23

%

Loans to Deposits

 

 

84.98

%

 

 

88.65

%

 

 

91.01

%

 

 

92.86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

4,706

 

 

$

4,499

 

 

$

5,830

 

 

$

7,398

 

Non-performing assets

 

$

4,706

 

 

$

4,499

 

 

$

8,815

 

 

$

7,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage capital (1)

 

 

12.70

%

 

 

12.27

%

 

 

11.90

%

 

 

11.26

%

Total risk-based capital (1)

 

 

16.86

%

 

 

16.36

%

 

 

15.46

%

 

 

14.71

%

Average equity to average assets

 

 

13.55

%

 

 

13.04

%

 

 

12.76

%

 

 

12.20

%

Tangible common equity to tangible assets (3)

 

 

12.15

%

 

 

12.11

%

 

 

11.47

%

 

 

11.00

%

 

  

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

2018

 

Selected Financial Information:

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.56

 

 

$

0.57

 

 

$

0.48

 

Diluted earnings per share

 

$

0.55

 

 

$

0.56

 

 

$

0.48

 

Net interest margin (2)

 

 

5.29

%

 

 

5.41

%

 

 

5.22

%

Efficiency ratio

 

 

49.32

%

 

 

46.94

%

 

 

54.10

%

Non-interest income to average assets

 

 

0.62

%

 

 

0.64

%

 

 

0.70

%

Non-interest expense to average assets

 

 

2.77

%

 

 

2.69

%

 

 

3.04

%

Return on average assets

 

 

1.95

%

 

 

1.94

%

 

 

1.70

%

Return on average equity

 

 

14.38

%

 

 

14.84

%

 

 

13.96

%

Net charge-offs / (recoveries)

 

$

872

 

 

$

1,240

 

 

$

(378

)

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

 

 

0.21

%

 

 

0.29

%

 

 

-0.09

%

________________________________

 

(1)

Tier 1 leverage capital and Total risk-based capital as of March 31, 2019 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 $28,974,000, $29,085,000, $29,195,000 and $29,088,000 at March 31, 2019, December 31, 2018, September 30, 2018 and March 31, 2018, respectively.

 

9


 

Exhibit 99.1

PEOPLE’S UTAH BANCORP

SELECTED AVERAGE BALANCES AND YIELDS

 

 

Three Months Ended

 

 

 

March 31, 2019

 

 

March 31, 2018

 

 

 

 

 

 

 

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

 

$

38,921

 

 

$

219

 

 

 

2.28

%

 

$

13,458

 

 

$

45

 

 

 

1.36

%

Securities: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable securities

 

 

276,903

 

 

 

1,604

 

 

 

2.35

%

 

 

252,491

 

 

 

1,214

 

 

 

1.95

%

Non-taxable securities (2)

 

 

69,521

 

 

 

322

 

 

 

1.88

%

 

 

82,518

 

 

 

382

 

 

 

1.88

%

Total securities

 

 

346,424

 

 

 

1,926

 

 

 

2.26

%

 

 

335,009

 

 

 

1,596

 

 

 

1.93

%

Loans (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate term

 

 

889,114

 

 

 

13,047

 

 

 

5.95

%

 

 

854,982

 

 

 

12,164

 

 

 

5.77

%

Construction and land development

 

 

315,810

 

 

 

6,231

 

 

 

8.00

%

 

 

366,739

 

 

 

6,875

 

 

 

7.60

%

Commercial and industrial

 

 

296,854

 

 

 

5,122

 

 

 

7.00

%

 

 

314,027

 

 

 

5,090

 

 

 

6.57

%

Residential and home equity

 

 

156,298

 

 

 

2,316

 

 

 

6.01

%

 

 

106,910

 

 

 

1,336

 

 

 

5.07

%

Consumer and other

 

 

16,781

 

 

 

264

 

 

 

6.39

%

 

 

19,857

 

 

 

318

 

 

 

6.49

%

Total loans

 

 

1,674,857

 

 

 

26,980

 

 

 

6.53

%

 

 

1,662,515

 

 

 

25,783

 

 

 

6.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-marketable equity securities

 

 

2,947

 

 

 

27

 

 

 

3.74

%

 

 

6,108

 

 

 

15

 

 

 

1.01

%

Total interest-earning assets

 

 

2,063,149

 

 

 

29,152

 

 

 

5.73

%

 

 

2,017,090

 

 

 

27,439

 

 

 

5.52

%

Allowance for loan losses

 

 

(25,805

)

 

 

 

 

 

 

 

 

 

 

(18,715

)

 

 

 

 

 

 

 

 

Non-interest earning assets

 

 

149,701

 

 

 

 

 

 

 

 

 

 

 

145,181

 

 

 

 

 

 

 

 

 

Total average assets

 

$

2,187,045

 

 

 

 

 

 

 

 

 

 

$

2,143,556

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and savings accounts

 

$

799,641

 

 

 

994

 

 

 

0.50

%

 

$

718,242

 

 

 

451

 

 

 

0.25

%

Money market accounts

 

 

249,535

 

 

 

604

 

 

 

0.98

%

 

 

224,322

 

 

 

157

 

 

 

0.28

%

Certificates of deposit

 

 

181,945

 

 

 

583

 

 

 

1.30

%

 

 

199,549

 

 

 

459

 

 

 

0.93

%

Total interest-bearing deposits

 

 

1,231,121

 

 

 

2,181

 

 

 

0.72

%

 

 

1,142,113

 

 

 

1,067

 

 

 

0.38

%

Short-term borrowings