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 the Company achieved record net income for the year. Additionally, the Company continues to perform at a superior level in comparison to our peers and the industry. Net income was $23.4 million in 2018 as compared to $15.3 million in 2017. This represents a 53 percent increase and growth of $8.1 million year over year.

One highlight of the year was the Company’s purchase of AmBancorp, Inc., the holding company of American Bank of Commerce (AmBank) in the fourth quarter of 2018. This acquisition added two additional branches in Utah County (Lindon and Provo) and a branch in Wasatch County (Heber). Utah County is one of the fastest growing areas in the country for business and population. These added facilities and employees will enable us to increase business in this area of the state.

In addition to our excellent earnings and expansion activities, assets increased over 17 percent, from $1.2 billion in 2017 to $1.4 billion in 2018. Assets have grown by more than 70 percent over the past five years. Along with growth in assets, the Company grew total stockholder equity by $18.9 million, while maintaining the liquidity to take advantage of other opportunities that may be presented in the future. Cash dividends rose 3.5 percent from $0.29 per share in 2017 to $0.30 in 2018. In addition, on May 1, 2018 the Company issued a 9 for 1 stock dividend.

Key Accomplishments in 2018:
• Record earnings of $23.4 million in 2018.
• Adding branches in high-growth counties through the acquisition of AmBank.
• Loan growth of 21 percent.
• Average deposit growth of 12.5 percent.
• Global expansion in corporate trusts.
• Nine for one stock dividend.

Record earnings enhanced shareholder value by increasing dividends and investing in the Company’s infrastructure including new products, services, technology, security systems and competitive wages.
The Company does business in one of the best economies in the United States. The state of Utah was one of only five states in the nation to experience job growth of over 3.1 percent. Every major industry in the state had positive growth with trade/transportation/utilities, manufacturing and financial services leading the way.

High job growth has led to continued in-migration and population growth. For the past decade, Utah ranks first in population growth. This represents nearly 400,000 people. In the past year alone, Utah added almost 58,000 people, of which, 43 percent migrated to the state.

We take pride in giving back to the communities we serve through monetary and volunteer efforts and donating to causes that improve the quality of life of those that live here.

The Bank is managed with a view and concern for the long run. We will continue to make sound business decisions for our customers, shareholders and employees that will keep Bank of Utah a leader in our community and industry for years to come.

Frank W. Browning
Chairman, BOU Bancorp, Inc.

Douglas L. DeFries
President & CEO, Bank of Utah