Driving Success in Shifting Times.
The word “shifting” is a key word in today’s banking industry. “Shifting rates” and “shifting economic conditions” dominate conversations. At Bank of Utah, add to that “shifting balance sheet makeup”, “shifting ups and downs in revenue streams” and even “shifting leadership”, as I retire and my role as president shifts to our current chief business officer Branden Hansen on Jan. 1, 2023.
Shifts often cause unease because they mean change is coming, and change brings uncertainty. What I’ve come to realize in my 37 years at Bank of Utah, however, is that when we make the decision to shift, it’s done meaningfully and proactively, to protect our customers, communities, shareholders and bottom line. In fact, it is our ability to shift that helped us grow in the third quarter of 2022, with increases in deposits and loans, even against a volatile economic backdrop.
Consolidated net income for the third quarter of 2022 was $8.6 million, compared to $7.4 million for the second quarter of 2022 and $7.2 million for the third quarter of 2021, an increase of 15.5 percent and 19.4 percent, respectively.
Noninterest income was $5.0 million, a 14.2 percent decrease from the previous quarter and a 27.5 percent decrease from third quarter 2021. Offsetting the decrease, however, was our net interest income.
Net interest income increased to $21.3 million, up 16.0 percent quarter over quarter and up 24.1 percent year over year.
This growth was, in very large part, due to the Bank’s customer-centric employees who communicate the right products and services to customers at just the right time. The Bank’s success is their success. This growth was also due to the Bank’s proactive balance sheet management. This includes the allocation of liquidity to the right balance of loans and investment securities, as well as our decision made long ago to diversify revenue streams.
That leads me to another shift, a bittersweet one: my retirement. As Branden moves into his role as president in January, I am confident in his ability to make strong, thoughtful decisions to drive Bank of Utah forward. He’s been a vital member of the executive team since 2011, and I know he will continue to set a strong vision and strategy for the Bank.
To end, I cannot overstate the impact Bank of Utah has had on me. As I look back on
my life in this state and on my banking career and then forward to my future on Bank
of Utah’s board of directors, I can say that this has been, and always will be, My Utah,
Douglas L. DeFries
President and CEO