If you had told me during the second quarter of 2020 that by the fourth quarter we would have broken our profitability record, I would not have believed it. I was bracing for the worst, facing health concerns, economic recession and surprises we couldn’t have imagined, such as earthquakes, windstorms, social unrest and even our wire vendor’s software crash. Yet, we have grown assets significantly, ending 2020 with a record-breaking $31.6 million in Consolidated Net Income.
We have more than 350 employees to thank for our results, as they worked extraordinarily hard to turn a year that could have been dire for Bank of Utah into a year of prosperity.
- Consolidated Net Income for the fourth quarter of 2020 was $10.1 million, compared to $7.8 million for the third quarter and $7.9 million for the fourth quarter of 2019. The Paycheck Protection Program (PPP) contributed to that growth and resulted in an increase to our client base as well. I am proud of the outreach we provided — updating community members through our website, for example — as it brought many new customers to the Bank.
- Noninterest Income for the fourth quarter of 2020 was $9.7 million, compared to $8.9 million for the third quarter and $6.2 million for the fourth quarter of 2019. Mortgage production boosted these figures, with a 20.0 percent increase in the gain on the sale of mortgage loans over the third quarter and record-producing volume that resulted in a 53.4 percent year-over-year increase. Corporate trust also contributed to our Noninterest Income growth with a 12.9 percent increase in fee revenue over the previous year.
- Total Assets grew by 32 percent in 2020, to $1.9 billion. This level of growth means we can invest in meaningful products, services and technology to remain relevant to a wide variety of customers. We can continue to make a difference in our communities and retain the ability to make thoughtful, but quick, decisions.
I was continually impressed throughout 2020 by the way our employees took care of our customers, our communities and each other. They worked to implement an online account opening process to help customers while quarantined. They worked into the night to ensure customers could keep their own businesses open. They helped provide equipment and food to first responders. They made investments in technology ahead of the pandemic to ensure our workflows were not disrupted.
Through dedication and teamwork, our employees have given us the capacity and the capability to grow and I have no doubt that our success will continue into 2021 — together, we are resilient and we are resourceful. Together, we are here for Utah, today and always.
Douglas L. DeFries
President and CEO