Letter to Shareholders

Almost every Tuesday, Bank of Utah hosts “Insights,” a 30-minute, virtual, bank-wide discussion for employees. During one of our 2022 meetings, a guest speaker began her presentation by reading Bank of Utah’s mission statement. Afterward, many employees commented on how inspiring it was to hear it read aloud and how it reminded them of our shared purpose. We’d like to share it with you:

“We are a community bank, dedicated to providing quality financial services through friendly, professional employees. We will be responsive to our present and prospective customers and become a major banking force in the Utah markets we serve. Our products and services will meet the needs of our customers in a rapidly changing environment. Key elements and controlling factors in our planning, service and product design will be safety, efficiency and profitability. The honor, respect and integrity of our employees, customers and stockholders are of the highest priority to the Bank. We will be the best community bank in Utah.”

The mission statement is important. It describes our commitment to fostering strength and stability within the Bank and the communities we serve. In 2022 — a year of change for Bank of Utah’s leadership and challenges for the U.S. economy — it directed our focus and helped us deliver the strongest performance in our 70-year history.

On behalf of BOU Bancorp, Inc., the holding company of Bank of Utah and Utah Risk Management, Inc. (collectively, the Bank), we are pleased to report that total assets grew to $2.4 billion, an 11.9 percent increase from 2021. Consolidated net income also increased year over year, from $31.7 million to $33.6 million. In addition, the Bank achieved yet another milestone, exceeding $100 million in total revenue for the first time, with $102.3 million. At year-end, Bank of Utah had three times more capital than required by regulators, as well as remarkable liquidity, earning the Bank a 5-star rating by BauerFinancial — the highest ranking possible.

Bank of Utah is now in the top 11 percent of banks in the nation for total assets, the top 9 percent for net income and the top 8 percent for total equity capital. The growth in 2022, plus the addition of a large new investor, allowed the Bank to pay approximately $40 million to stockholders, represented by a total of $0.40 per share in quarterly dividends and a one-time dividend of $2.00 per share.

As you review the company’s financial position through 2022, we invite you do so through the lens of our mission statement. It has guided us to deliver the best service to our customers and high returns to our shareholders, even when the economy made it challenging. It has held us to honor our commitment to bring philanthropy, volunteerism and community development to local communities. Rest assured that our pledge to be innovative will always complement our promise to be financially responsible. Know that we will always seek opportunities to grow our capital base and use our diverse lines of business to improve profitability — to be strong for you.

Thank you for the trust and confidence you place in Bank of Utah. We are happy to have served you in 2022 and look forward to many years to come.

Branden P Hansen

Frank W. Browning
Chairman, BOU Bancorp, Inc.