• People’s Utah Bancorp Reports Third Quarter 2017 Results and Announces Quarterly Dividend Payment

    Source: Nasdaq GlobeNewswire / 25 Oct 2017 16:31:51   America/New_York

    AMERICAN FORK, Utah, Oct. 25, 2017 (GLOBE NEWSWIRE) -- People’s Utah Bancorp (the “Company”) (Nasdaq:PUB), a bank holding company and parent of People’s Intermountain Bank (“Bank”), reported net income of $6.2 million for the third quarter of 2017 compared with $6.5 million in the second quarter of 2017, and $6.2 million for the third quarter of 2016.  Diluted earnings per common share were $0.34 for the third quarter of 2017 compared with $0.35 for the second quarter of 2017, and $0.34 for the third quarter of 2016.  For the nine months ended September 30, 2017 net income was $19.3 million, or $1.05 per diluted common share, compared with $17.1 million, or $0.94 per diluted common share, for the same period a year earlier. 

    During the third quarter, the Company recorded a $0.5 million loss on sale of $80.4 million investment securities to raise liquidity to fund the purchase of net assets from the acquisition of Banner Bank branches, and recorded $0.5 million in costs related to the purchase of the Utah branches of Banner Bank and the pending merger of Town & Country Bank.  Net income from core operations was $6.9 million, or $0.37 per diluted common share, for the third quarter of 2017 and $20.0 million, or $1.09 per diluted common share, for the nine months ended September 30, 2017(NG)

    PUB previously announced that its banking subsidiary, PIB, successfully completed the acquisition of $255 million in loans and seven Utah branch locations with approximately $160 million in low-cost deposits from Banner Corporation’s (Nasdaq:BANR) banking subsidiary Banner Bank (“Banner”) on October 6, 2017.  PIB paid a deposit premium of $13.8 million based on average deposits at closing. PIB has also successfully completed the conversion of these branches onto PIB’s core banking platform.  The seven branches acquired are located in Salt Lake City, Provo, South Jordan, Woods Cross, Orem, Salem, and Springville.  The Woods Cross and Orem branches have successfully been consolidated into the existing Bank of American Fork Bountiful and Orem branches, respectively.  PIB will operate the remaining branches under the name of Bank of American Fork, a division of PIB.

    PUB also announced that it expects to close the Town & Country merger on November 8, 2017, subject to Town & Country shareholder approval and other closing conditions.  PUB has received all required regulatory approvals for this merger.  Town & Country has scheduled a shareholder meeting on November 7, 2017 to vote on the merger transaction.  PIB expects to convert Town & Country onto its core banking platform on December 8, 2017.

    The Board of Directors declared a quarterly dividend of $0.09 per common share. The dividend will be payable on November 13, 2017 to shareholders of record on November 6, 2017. The dividend payout ratio for earnings for the quarter ended September 30, 2017 was 25.9%.  This continues our over 50-year trend in paying dividends.

    “We are pleased to have achieved strong financial performance for the third quarter across our community banking family, excluding acquisition-related costs,” said Richard Beard, President and Chief Executive Officer of People’s Utah Bancorp. “While we continue to achieve solid loan and deposit growth, we’ve maintained a strong focus on credit quality as reflected in our low level of nonperforming assets.  As a result of our efforts to profitably grow our business, we continue to experience positive trends in our overall operating performance.”

    Mr. Beard further stated that, “We are thrilled to have successfully completed the acquisition of the Utah branch locations from Banner Bank, which expands our footprint by five branches to a total of 25 branches, and significantly increases the size of the two branches consolidated into our existing branches.  This transaction provides our existing customers with added convenience and service with new branch locations, and gives our new customers the opportunity to enjoy outstanding personalized service and the commitment of an over 100 year old, Utah-based community bank.  This transaction, coupled with the Town & Country Bank acquisition, which we expect to complete in the fourth quarter, allows us to further deploy our solid capital base and to strategically grow our company along the I-15 corridor of the Intermountain Region.  Upon the completion of the transaction, we expect total assets to be in excess of $2.0 billion, and we expect the transactions will be immediately accretive to earnings, after acquisition-related costs.”

    ________________________________
    (NG) Details on Non-GAAP financial information are in the final two tables of this press release.

    Highlights of the Third Quarter of 2017

    • Deposits grew $116.3 million, or 8.2%, to $1.5 billion year-over-year
    • Loans held for investment grew $110.2 million, or 10.0%, to $1.2 billion year-over-year
    • Net interest margin increased 17 bps to 4.77% year-over-year
    • Year to date return on average equity was 10.80% and from core operations was 11.21%(NG)
    • Year to date return on average assets was 1.51% and from core operations was 1.57%(NG)
    • Year to date efficiency ratio was to 55.95% and from core operations was 54.59%(NG)

    Earnings Summary

    Net income for the third quarter of 2017 of $6.2 million compared with $6.5 million in the second quarter of 2017 was primarily impacted by the following factors: (a) higher net interest income of $0.9 million due primarily to strong loan and deposit growth; (b) lower non-interest income of $0.8 million due primarily to a $0.5 million loss on sale of investment securities, (c) higher non-interest expense of $1.3 million, principally from $1.1 million of higher salaries and benefits and $0.3 million in acquisition-related costs; and (d) lower income tax expense of $0.9 million due primarily to lower pre-tax income and tax benefits related to tax-deductible stock compensation expenses in the third quarter.  These factors contributed to diluted earnings per common share decreasing $0.01 per share to $0.34 per share in the third quarter of 2017. Diluted earnings per share from core operations was $0.37 for the third quarter of 2017(NG).

    Net income for the third quarter of 2017 of $6.2 million was flat compared with the third quarter of 2016 and was impacted primarily by the following factors: (a) higher net interest income of $2.3 million due primarily to strong loan and deposit growth; (b) higher provision for loan losses of $0.6 million due primarily to loan growth and net chargeoffs; (c) lower non-interest income of $0.8 million due primarily to a $0.5 million loss on sale of investment securities; (d) higher non-interest expense of $1.8 million, principally from $1.1 million higher salaries and benefits and $0.5 million in acquisition-related costs; and (e) lower income tax expense of $0.9 million due primarily to lower pre-tax income and tax benefits related to tax-deductible stock compensation expenses in the third quarter of 2017. 

    Return on average assets for the third quarter of 2017 was 1.42% compared with 1.53% for the second quarter of 2017, and 1.55% for the third quarter of 2016.  Return on average assets from core operations for the third quarter 2017 was 1.56% and was 1.56% for the second quarter of 2017(NG).  Return on average equity for the third quarter of 2017 was 10.14% compared with 10.91% for the second quarter of 2017, and 11.09% for the third quarter of 2016.  Return on average equity from core operations for the third quarter 2017 was 11.15% and 11.10% for the second quarter of 2017(NG).  

    Net Interest Income and Margin

    Net interest income for the third quarter of 2017 increased $0.9 million compared with the second quarter of 2017, primarily due to a $42.2 million increase in average earning assets and a 6 basis points increase in yield on interest earning assets.  Average loans increased by $39.8 million during the comparable periods.  This contributed to a higher net interest margin of 4.77% in the current quarter compared with 4.71% in the second quarter of 2017. 

    Net interest income for the third quarter of 2017 increased $2.3 million compared with the same period a year earlier, primarily due to a $132.5 million increase in the average earning assets and a 16 basis points increase in the yield on interest earning assets.  Average loans increased by $110.5 million during the comparable periods.  This resulted in a higher net interest margin of 4.77% in the current quarter compared to 4.60% in the same quarter a year ago. 

    Provision for Loan Losses

    The provision for loan losses for the third quarter of 2017 was flat at $0.9 million compared with the second quarter of 2017, and $0.6 million higher compared with the third quarter of 2016, due primarily to growth in loans held for investment and net chargeoffs.  The Company incurred net charge-offs of $0.6 million in the third quarter of 2017 compared with $0.3 million in the second quarter of 2017, and $0.3 million in the third quarter of 2016. 

    Non-interest Income

    Non-interest income for the third quarter of 2017 decreased $0.8 million compared with the second quarter of 2017, and decreased $0.8 million compared with the same period a year ago primarily due to $0.5 million loss on sale of $80.4 million of investment securities, which were sold to raise liquidity to fund the purchase of net assets from the acquisition of the Utah branches of Banner Bank.  In addition, the Company has experienced lower mortgage banking income and residential mortgage loan volumes during 2017 compared with 2016.

    Non-interest Expense

    Non-interest expense for the third quarter of 2017 increased by $1.3 million compared with the second quarter of 2017, and increased $1.8 million compared with the same period a year earlier primarily due to $0.5 million in acquisition-related costs recorded in the third quarter of 2017, and higher salaries and employee benefits due to new hires to support our strong loan and deposits growth and the acquisition of the Utah branches of Banner Bank, but are offset by a $0.5 million medical benefits refund recorded in the second quarter of 2017.  We expect to have additional acquisition-related costs in future quarters.    
    Our efficiency ratio for the third quarter of 2017 was 58.13% compared with 52.94% in the second quarter of 2017 and 54.04% in the third quarter of 2016.  Our efficiency ratio from core operations for the third quarter of 2017 was 54.94% and 52.19% for the second quarter of 2017.(NG) 

    Income Tax Provision

    The effective tax rate for the third quarter of 2017 was 30.2% compared with 35.6% for the second quarter of 2017 and 36.2% in the third quarter of 2016.  Income tax expense for the third quarter of 2017 decreased compared with the second quarter of 2017 and the third quarter of 2016 primarily due to lower pre-tax income and tax benefits of $0.5 million related to tax-deductible stock compensation expense. 

    Loans and Credit Quality

    Loans held for investment at September 30, 2017 increased $110.2 million, or 10.0%, year-over-year, and $95.7 million, or 8.5%, from December 31, 2016.  Average loans grew $110.5 million, or 10.0%, to $1.2 billion year-over-year from the third quarter of 2016 to the current quarter of 2017.

    Non-performing loans decreased to $4.1 million at September 30, 2017 compared with $7.6 million at June 30, 2017, $5.4 million at December 31, 2016, and $4.9 million at September 30, 2016.  Non-performing assets to total assets were 0.25% at September 30, 2017, 0.47% at June 30, 2017, 0.34% at December 31, 2016, and 0.32% at September 30, 2016.  The allowance for loan losses to loans held for investment was 1.45% at September 30, 2017, 1.43% at June 30, 2017, 1.49% at December 31, 2016 and 1.46% at September 30, 2016.

    Investment Securities

    Investment securities at September 30, 2017 decreased by 21.9% to $302.6 million compared with $387.6 million at the same period a year earlier primarily as a result of the $80.4 in investment securities sold to raise liquidity to fund the purchase of net assets from the acquisition of the Utah branches of Banner Bank.

    Deposits and Liabilities

    Total deposits at September 30, 2017 were $1.53 billion compared with $1.43 billion at December 31, 2016 and $1.41 billion at September 30, 2016.  Increases during these periods were primarily due to growth of the client base and new customers. Non-interest-bearing deposits were 34.5% of total deposits as of September 30, 2017 compared with 31.1% as of December 31, 2016 and 32.9% as of September 30, 2016. 

    Shareholders’ Equity

    Shareholders’ equity increased to $245.4 million at September 30, 2017 compared with $228.5 million as of December 3,1 2016 and $225.2 million at September 30, 2016. The increase resulted primarily from net income 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 2017 at 11:00 a.m. Eastern time on Thursday, October 26, 2017. 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 conference ID is 9051999.

    To participate in the webcast, log on to: http://services.choruscall.com/links/pub171026.html.

    If you are unable to participate during the live webcast, the call will be archived on www.peoplesutah.com or at the webcast URL above until November 27, 2017. 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. Such statements include but are not limited to statements about our expectations for the closing of the merger with Town & Country Bank and the impact to our total assets of the Town & Country Bank merger and the acquisition of the Utah branches of Banner Bank.  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, 2016 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, which has 25 locations in two banking divisions, Bank of American Fork and Lewiston State Bank, a leasing division, GrowthFunding Equipment Finance, and a mortgage division, People’s Intermountain Bank Mortgage. PUB has a pending transaction, subject to closing conditions, to acquire Town & Country Bank, Inc. in St, George, Utah.  PIB has been serving communities in Utah and southern Idaho for more than 100 years. PUB is committed to preserving the community-bank model with a full range of bank products and technologies. More information about PUB is available at www.peoplesutah.com.

    Investor Relations Contact:
    Wolfgang T. N. Muelleck
    Executive Vice President/Chief Financial Officer
    1 East Main Street
    American Fork UT 84003
    investorrelations@peoplesutah.com
    Phone: 801-642-3998

     
    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) 2017  2017  2016  2017  2016 
    Interest income                    
    Interest and fees on loans $18,852  $17,928  $16,876  $53,633  $49,147 
    Interest and dividends on investments  1,820   1,802   1,471   5,327   4,563 
    Total interest income  20,672   19,730   18,347   58,960   53,710 
    Interest expense  754   749   710   2,269   2,162 
    Net interest income  19,918   18,981   17,637   56,691   51,548 
    Provision for loan losses  900   900   325   2,000   750 
    Net interest income after provision for loan losses  19,018   18,081   17,312   54,691   50,798 
    Non-interest income                    
    Service charges on deposit accounts  636   578   582   1,750   1,626 
    Card processing  1,247   1,208   1,129   3,579   3,296 
    Mortgage banking  1,686   1,960   2,244   5,625   6,269 
    Net loss on sale of investment securities  (486)  -   -   (499)  - 
    Other operating  491   602   431   1,579   1,356 
    Total non-interest income  3,574   4,348   4,386   12,034   12,547 
    Non-interest expense                    
    Salaries and employee benefits  8,813   7,762   7,674   24,542   23,517 
    Occupancy, equipment and depreciation  1,164   1,088   1,101   3,369   3,165 
    Data processing  650   661   665   1,986   2,112 
    FDIC premiums  135   130   124   391   507 
    Card processing  543   516   509   1,588   1,648 
    Marketing and advertising  343   349   301   954   760 
    Acquisition-related costs  484   176   -   660   - 
    Other  1,525   1,669   1,528   4,961   4,728 
    Total non-interest expense  13,657   12,351   11,902   38,451   36,437 
    Income before income tax expense  8,935   10,078   9,796   28,274   26,908 
    Income tax expense  2,697   3,584   3,548   9,021   9,840 
    Net income $6,238  $6,494  $6,248  $19,253  $17,068 
                         
    Earnings per common share:                    
    Basic $0.35  $0.37  $0.35  $1.07  $0.96 
    Diluted $0.34  $0.35  $0.34  $1.05  $0.94 
                         
    Weighted average common shares outstanding:                    
    Basic  17,976,066   17,937,926   17,764,647   17,933,010   17,711,899 
    Diluted  18,396,664   18,351,531   18,248,008   18,355,136   18,182,053 


    PEOPLE’S UTAH BANCORP
    UNAUDITED CONSOLIDATED BALANCE SHEETS
     
      September 30,  June 30,  December 31,  September 30, 
    (Dollars in thousands, except share data) 2017  2017  2016  2016 
    ASSETS                
    Cash and due from banks $26,986  $28,315  $26,524  $29,852 
    Interest bearing deposits  173,778   26,027   37,958   67,930 
    Federal funds sold  6,101   3,093   3,456   253 
    Total cash and cash equivalents  206,865   57,435   67,938   98,035 
    Investment securities:                
    Available for sale, at fair value  226,808   325,172   335,609   326,096 
    Held to maturity, at historical cost  75,808   77,394   73,512   61,471 
    Total investment securities  302,616   402,566   409,121   387,567 
    Non-marketable equity securities  1,959   1,959   1,827   1,827 
    Loans held for sale  10,742   7,655   20,826   15,178 
    Loans:                
    Loans held for investment  1,215,573   1,201,391   1,119,877   1,105,398 
    Less allowance for loan losses  (17,609)  (17,271)  (16,715)  (16,181)
    Total loans held for investment, net  1,197,964   1,184,120   1,103,162   1,089,217 
    Premises and equipment, net  26,271   23,551   21,926   22,056 
    Bank-owned life insurance  20,096   19,970   19,714   19,581 
    Deferred income tax assets  10,234   9,845   9,799   8,248 
    Accrued interest receivable  6,186   5,616   5,557   5,801 
    Other real estate owned  325   468   245   407 
    Other assets  6,878   5,190   5,866   5,940 
    Total assets $1,790,136  $1,718,375  $1,665,981  $1,653,857 
                     
    LIABILITIES AND SHAREHOLDERS’ EQUITY                
    Deposits:                
    Non-interest bearing deposits $527,236  $465,988  $443,100  $464,638 
    Interest bearing deposits  1,000,945   995,064   981,974   947,201 
    Total deposits  1,528,181   1,461,052   1,425,074   1,411,839 
    Short-term borrowings  3,773   3,302   3,199   3,188 
    Accrued interest payable  259   269   305   293 
    Other liabilities  12,498   13,850   8,886   13,387 
    Total liabilities  1,544,711   1,478,473   1,437,464   1,428,707 
    Commitments and contingencies                
    Shareholders’ equity:                
    Preferred shares, $0.01 par value  -   -   -   - 
    Common shares, $0.01 par value  180   179   178   178 
    Additional paid-in capital  70,307   69,623   68,657   68,415 
    Retained earnings  175,462   170,840   160,692   155,573 
    Accumulated other comprehensive income  (524)  (740)  (1,010)  984 
    Total shareholders’ equity  245,425   239,902   228,517   225,150 
    Total liabilities and shareholders’ equity $1,790,136  $1,718,375  $1,665,981  $1,653,857 
                     
    Common shares outstanding  18,022,651   17,948,347   17,819,538   17,790,549 


    PEOPLE’S UTAH BANCORP
    SUMMARY FINANCIAL INFORMATION
        
      September 30,  June 30,  December 31,  September 30, 
    (Dollars in thousands, except share data) 2017  2017  2016  2016 
    Selected Balance Sheet Information:                
    Book value per share $13.62  $13.37  $12.82  $12.66 
    Tangible book value per share $13.59  $13.34  $12.79  $12.62 
    Non-performing assets to total assets  0.25%  0.47%  0.34%  0.32%
    Allowance for loan losses to loans held for investment  1.45%  1.43%  1.49%  1.46%
    Loans held for investment to Deposits  79.54%  82.23%  78.58%  78.29%
                     
    Asset Quality Data:                
    Non-performing loans $4,141  $7,611  $5,357  $4,904 
    Non-performing assets  4,466   8,079   5,602   5,311 
                     
    Capital Ratios:                
    Tier 1 leverage capital (1)  14.07%  14.15%  13.71%  13.93%
    Total risk-based capital (1)  20.35%  19.81%  20.19%  20.04%
    Average equity to average assets  13.99%  14.00%  13.83%  13.91%
    Tangible common equity to tangible assets (3)  13.69%  13.93%  13.69%  13.58%


      Three Months Ended  Nine Months Ended 
      September 30,  June 30,  September 30,  September 30,  September 30, 
      2017  2017  2016  2017  2016 
    Selected Financial Information:                    
    Basic earnings per share $0.35  $0.37  $0.35  $1.07  $0.96 
    Diluted earnings per share $0.34  $0.35  $0.34  $1.05  $0.94 
    Net interest margin (2)  4.77%  4.71%  4.60%  4.68%  4.62%
    Efficiency ratio  58.13%  52.94%  54.04%  55.95%  56.85%
    Non-interest income to average assets  0.81%  1.03%  1.08%  0.94%  1.07%
    Non-interest expense to average assets  3.10%  2.92%  2.94%  3.02%  3.09%
    Return on average assets  1.42%  1.53%  1.55%  1.51%  1.45%
    Return on average equity  10.14%  10.91%  11.09%  10.80%  10.42%
    Net charge-offs  562   273   296   1,106   126 
    Annualized net charge-offs to average loans  0.18%  0.09%  0.11%  0.13%  0.02%
                         
    Average Balances:                    
    Average loans $1,217,203  $1,177,403  $1,106,695  $1,177,063  $1,088,091 
    Average earning assets  1,657,085   1,614,867   1,524,628   1,619,351   1,491,098 
    Average total assets  1,746,054   1,698,666   1,608,639   1,704,220   1,573,161 
    Average shareholders’ equity  244,051   238,765   224,068   238,405   218,758 
                         
    (1) Tier 1 leverage capital and Total risk-based capital as of September 30, 2017 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 $509,000, $533,000, $581,000 and $606,000 at September 30, 2017, June 30, 2017, December 31, 2016, and September 30, 2016, respectively.


    PEOPLE’S UTAH BANCORP
    SELECTED AVERAGE BALANCES AND YIELDS
     
      Three Months Ended 
      September 30, 2017  September 30, 2016 
          Interest  Average      Interest  Average 
      Average  Income/  Yield/  Average  Income/  Yield/ 
    (Dollars in thousands, except footnotes) Balance  Expense  Rate  Balance  Expense  Rate 
    Taxable securities (1) $260,941  $1,115   1.70% $272,827  $1,010   1.47%
    Non-taxable securities (1) (2)  89,001   414   1.85%  84,405   384   1.81%
    Loans (3) (4)  1,217,203   18,852   6.14%  1,106,695   16,875   6.07%
    Total interest earning assets  1,657,085   20,672   4.95%  1,524,628   18,347   4.79%
    Total average assets  1,746,054           1,608,639         
    Total interest bearing deposits  988,780   752   0.30%  925,483   709   0.30%
    Shareholders’ equity  244,051           224,068         
    Net interest income      19,918           17,637     
    Net interest margin          4.77%          4.60%
                             
                             
      Nine Months Ended 
      September 30, 2017  September 30, 2016 
          Interest  Average      Interest  Average 
      Average  Income/  Yield/  Average  Income/  Yield/ 
    (Dollars in thousands, except footnotes) Balance  Expense  Rate  Balance  Expense  Rate 
    Taxable securities (1) $298,335  $3,625   1.62% $278,746  $3,196   1.53%
    Non-taxable securities (1) (2)  91,606   1,268   1.85%  90,063   1,247   1.85%
    Loans (3) (4)  1,177,063   53,633   6.09%  1,088,091   49,147   6.03%
    Total interest earning assets  1,619,351   58,960   4.87%  1,491,098   53,710   4.81%
    Total average assets  1,704,220           1,573,161         
    Total interest bearing deposits  986,525   2,238   0.30%  912,314   2,123   0.31%
    Shareholders’ equity  238,405           218,758         
    Net interest income      56,691           51,548     
    Net interest margin          4.68%          4.62%
     
    (1) Excludes average unrealized gains (losses) of $(602,000) and $2.0 million for the three months ended  September 30, 2017 and 2016, respectively, and ($1.0) million and $1.4 million for the nine months ended September 30, 2017 and 2016, respectively.
    (2) Does not include tax effect on tax-exempt investment security income of $223,000 and $207,000 for the three months ended September 30, 2017 and 2016, respectively and $683,000 and $671,000 for the nine months ended September 30, 2017 and 2016, respectively.
    (3) Loan interest income includes loan fees of $1.6 million and $1.6 million for the three months ended September 30, 2017 and 2016, respectively, and $4.7 million and $4.4 million for the nine months ended September 30, 2017 and 2016, respectively. 
    (4) Excludes average non-accrual loans of $5.9 million and $5.1 million for the three months ended September 30, 2017 and 2016, respectively, and $6.0 million and $5.6 million for the nine months ended September 30, 2017 and 2016, respectively. 


    PEOPLE’S UTAH BANCORP
    NON-GAAP SELECTED FINANCIAL INFORMATION
     
    (NG) Non-GAAP Financial Measures  
    In addition to financial results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures.  Management has presented these non-GAAP financial measures because it believes that they provide useful and comparative information to assess trends in core operations and facilitate the comparison of our financial performance with the performance of our peers during the periods in which the financial results are impacted by acquisition-related activities. 
      
                         
    (Dollars in thousands) Three Months Ended  Nine Months Ended 
      September 30,  June 30,  September 30,  September 30,  September 30, 
    Revenue from Core Operations 2017  2017  2016  2017  2016 
    Net interest income $19,918  $18,981  $17,637  $56,691  $51,548 
    Total non-interest income  3,574   4,348   4,386   12,034   12,547 
    Total GAAP revenues  23,492   23,329   22,023   68,725   64,095 
    Exclude net loss on sale of investment securities  486   -   -   499   - 
    Revenue from core operations (non-GAAP) $23,978  $23,329  $22,023  $69,224  $64,095 
                         
      Three Months Ended  Nine Months Ended 
      September 30,  June 30,  September 30,  September 30,  September 30, 
    Non-interest Income from Core Operations 2017  2017  2016  2017  2016 
    Total non-interest income (GAAP) $3,574  $4,348  $4,386  $12,034  $12,547 
    Exclude net loss on sale of investment securities  486   -   -   499   - 
    Non-interest income from core operations (non-GAAP) $4,060  $4,348  $4,386  $12,533  $12,547 
                         
      Three Months Ended  Nine Months Ended 
      September 30,  June 30,  September 30,  September 30,  September 30, 
    Non-interest Expense from Core Operations 2017  2017  2016  2017  2016 
    Total non-interest expense (GAAP) $13,657  $12,351  $11,902  $38,451  $36,437 
    Exclude acquisition-related costs  (484)  (176)  -   (660)  - 
    Non-interest expense from core operations (non-GAAP) $13,173  $12,175  $11,902  $37,791  $36,437 
                         
      Three Months Ended  Nine Months Ended 
      September 30,  June 30,  September 30,  September 30,  September 30, 
    Net Income from Core Operations 2017  2017  2016  2017  2016 
    Net income (GAAP) $6,238  $6,494  $6,248  $19,253  $17,068 
    Exclude net loss on sale of investment securities  486   -   -   499   - 
    Exclude acquisition-related costs  484   176   -   660   - 
    Exclude tax related benefit  (349)  (63)  -   (417)  - 
    Net income (non-GAAP) $6,859  $6,607  $6,248  $19,995  $17,068 


    PEOPLE’S UTAH BANCORP
    NON-GAAP SELECTED FINANCIAL INFORMATION
     
    (NG) Non-GAAP Financial Measures                    
    In addition to financial results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures.  Management has presented these non-GAAP financial measures because it believes that they provide useful and comparative information to assess trends in core operations and facilitate the comparison of our financial performance with the performance of our peers during the periods in which the financial results are impacted by acquisition-related activities. 
      
      
      
                         
    (Dollars in thousands) Three Months Ended  Nine Months Ended 
      September 30,  June 30,  September 30,  September 30,  September 30, 
    Additional Non-GAAP Financial Information 2017  2017  2016  2017  2016 
                         
    Diluted earning per share (GAAP) $0.34  $0.35  $0.34  $1.05  $0.94 
    Diluted earning per share (non-GAAP) $0.37  $0.36  $0.34  $1.09  $0.94 
                         
    Efficiency ratio (GAAP)  58.13%  52.94%  54.04%  55.95%  56.85%
    Efficiency ratio (non-GAAP)  54.94%  52.19%  54.04%  54.59%  56.85%
                         
    Non-interest income to average assets (GAAP)  0.81%  1.03%  1.08%  0.94%  1.07%
    Non-interest income to average assets (non-GAAP)  0.92%  1.03%  1.08%  0.98%  1.07%
                         
    Non-interest expense to average assets (GAAP)  3.10%  2.92%  2.94%  3.02%  3.09%
    Non-interest expense to average assets (non-GAAP)  2.99%  2.87%  2.94%  2.96%  3.09%
                         
    Return on average assets (GAAP)  1.42%  1.53%  1.55%  1.51%  1.45%
    Return on average assets (non-GAAP)  1.56%  1.56%  1.55%  1.57%  1.45%
                         
    Return on average equity (GAAP)  10.14%  10.91%  11.09%  10.80%  10.42%
    Return on average equity (non-GAAP)  11.15%  11.10%  11.09%  11.21%  10.42%

     

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