Responding. Transforming. Thriving.
It’s hard to believe that one year ago we were just beginning to brace for the impacts of a global pandemic. I remember promising in the first quarter of 2020 that we would do what was necessary to overcome COVID-19-related challenges and support those we serve. Not only were we able to fulfill that promise, we were also able to make 2020 a record-breaking year financially.
I am a firm believer that success breeds success. The achievements we made last year allowed us to reach a milestone in the first quarter of 2021, with our Total Assets reaching the $2 billion mark. On a historical note, it took 64 years, from 1952 to 2016 to reach the $1 billion mark, and only five years, from 2016 to 2021, to reach the next billion. This level of growth empowers us to implement even more financial tools for customers, expand our reach and provide all of the services that larger banks offer, but with our personal touch.
- Consolidated Net Income for Q1 2021 was $9.5 million compared to $10.1 million for Q4 2020 and $6.4 million for Q1 2020, a decrease of 5.3 percent and an increase of 47.9 percent, respectively. The key metrics that drove income in Q1 were strong commercial loan growth, which helped offset the decline in the Net Interest Margin, low cost deposit growth and continued growth in Noninterest Income, particularly in Gain on sale of mortgage loans.
- Noninterest Income increased 40.7 percent from Q1 2020. Mortgage production grew by 33.9 percent over the first quarter of 2020. Corporate Trust saw a 14.5 percent increase in accounts from Q1 2020, bringing the number of accounts to 2,558. Noninterest Income for Q1 represented 33 percent of the gross revenue generated by the Bank. This is well above the community bank average. These diversified income streams add strength to the Bank’s ability to generate income in all types of economic markets.
- Tangible Book Value Per Share was $13.29 compared to $13.01 from the previous quarter and $11.82 for Q1 2020. This represents the Bank’s equity less intangible assets. This value has increased by 182 percent in the past 10 years, reflecting our strong growth and profitability over that period.
- Paycheck Protection Program (PPP) loans continue to help businesses in our communities. In Q1 2021, the Bank made 487 PPP loans. Of those, 103 were first-draw PPP loans, and 384 were second-draw loans. The value of PPP loans booked in Q1 2021 totals more than $53.5 million.
As Utah begins to take careful steps forward, post-pandemic, it’s understandable why people and businesses are now saying, “Let’s put 2020 behind us.” But lessons can be learned from every experience. For Bank of Utah, those lessons included how to serve our customers better digitally, how to launch modern, meaningful products and how to find different ways to build relationships. These new capabilities, combined with our proven ability to connect with our customers and communities, helped us make the first quarter of 2021 one of our best yet in terms of profitability and production.
Again, success breeds success, and I am optimistic about Bank of Utah’s future.
Douglas L. DeFries
President and CEO