On behalf of BOU Bancorp, Inc., the holding company of Bank of Utah (Bank) and Utah Risk Management, Inc., collectively referred to as the “Company”, we are pleased to report another year of stellar earnings in 2017, with a net income of $15.3 million. These earnings were achieved despite a write down of $1.6 million of our deferred tax asset. The write down was in response to the passage of the Tax Cuts and Jobs Act of 2017, which will benefit us by lowering the federal corporate tax rate in the future. We continue to perform well by paying attention to the needs of our customers, shareholders and employees.

In addition to our excellent earnings, our assets increased by over 11 percent in 2017, from $1.1 billion to $1.2 billion. Assets have grown by 60 percent over the past five years. Our tangible net worth grew from $139.3 million in 2016 to $149.5 million in 2017. This steady increase in capital is a source of strength and gives us flexibility to pursue future opportunities. Cash dividends rose 28.9 percent from $2.25 per share in 2016 to $2.90 per share in 2017. The large increase in dividends was partially attributed to the distribution of $850,000 in return of capital from Utah Risk Management to shareholders. Dividends are an important element of our overall shareholder return strategy and we will continue to evaluate further increases as our earnings grow.

Key Accomplishments in 2017:
The addition of talented bankers across our commercial, mortgage and deposit teams.
Opening a new banking center in Bountiful.
Re-building the Roy branch.
The addition of a new commercial lending team in Utah County.
Delivering strong loan and deposit growth.
We will continue to make prudent investments where we see opportunities to generate additional revenue and improve client access and experience.

In 2017, we took advantage of many opportunities to give back to the communities where we live and work with both financial and service commitments. Some of our charitable endeavours include our Shower Them With Love baby item drive, Warm Bodies Warm Souls winter clothing drive, numerous scholarships, volunteer service projects and community events. Giving back is an intricate part of who we are and who we plan to be in the future.
We are excited for the future of both our Company and our community. We would not be able to accomplish any of our objectives without the effort and dedication of our Board of Directors, our senior management team and especially our dedicated employees. Together, we are building a stronger future for our customers, communities and shareholders.

Frank W. Browning
Chairman, BOU Bancorp, Inc.

Douglas L. DeFries
President & CEO, Bank of Utah