2020 Highlights
- Total assets grew $960 million, or 40%, year-over-year to $3.37
billion at December 31, 2020.
- Total deposits grew $860 million, or 42%, year-over-year to
$2.92 billion at December 31, 2020.
- Loans grew $14.6 million, or 0.9%, to $1.70 billion at December
31, 2020.
- Cash and liquid investments securities grew $942 million, or
152%, to $1.56 billion, or 46% of total assets, at December 31,
2020.
- Tangible equity plus allowance for credit losses totaled $384
million, or 23% of total loans held for investment, at December 31,
2020, which provides overall credit protection for both expected
and unexpected credit losses in its loan portfolio.
- Tangible book value per share increased $2.12, or 13.2%, to
$18.21 at December 31, 2020.
- Return on average assets was 1.52% and return on average equity
was 12.44% for the twelve months ended December 31, 2020.
AltabancorpTM (Nasdaq: ALTA) (the “Company” or “Alta”), the
parent company of AltabankTM, reported net income of $11.1 million
for the fourth quarter of 2020, compared with $11.3 million for the
third quarter of 2020, and $11.7 million for the fourth quarter of
2019. Diluted earnings per common share were $0.58 for the fourth
quarter of 2020, compared with $0.60 for the third quarter of 2020,
and $0.61 for the fourth quarter of 2019. For the twelve months
ended December 31, 2020 net income was $43.5 million, or $2.29 per
diluted common share, compared with $44.3 million, or $2.33 per
diluted common share, for the same period a year earlier.
Annualized return on average assets was 1.34% for the fourth
quarter of 2020 compared with 1.47% for the third quarter of 2020,
and 1.92% for the fourth quarter of 2019. Annualized return on
average equity was 12.06% for the fourth quarter of 2020 compared
with 12.62% for the third quarter of 2020, and 14.10% for the
fourth quarter of 2019.
For the year ended December 31, 2020, return on average assets
was 1.52% and return on average equity was 12.44% compared with
1.93% and 14.14% for the same period a year earlier.
The Board of Directors declared a quarterly dividend payment of
$0.15 per common share. The dividend will be payable on February
16, 2021 to shareholders of record as of February 9, 2021. The
dividend payout ratio for earnings for the fourth quarter of 2020
was 25.5%. This continues the over 50-year trend of paying
dividends by the Company.
“2020 was a challenging year for our organization, our
associates, and our clients as we collectively managed the negative
effects of the COVID-19 pandemic,” said Len Williams, President and
Chief Executive Officer of AltabancorpTM. “Many of our associates
have been working from home since March 2020. Most of our branch
lobbies have been available by appointment only for most of the
year, while our drive-up windows have remained open. We have
provided substantial financial relief to our clients through
participation in government programs as well as our own payment
relief programs. We provided payment accommodations to almost
twenty percent of our clients, and we offered first round Small
Business Administration Paycheck Protection Program Loans (“SBA
PPP”) to over 300 clients. We are offering additional funding for
the second round of SBA PPP loans. We will continue to work
together with our clients to ensure that we can provide financial
solutions to assist them on their path to recovery as we all work
to overcome the pandemic.”
Mr. Williams continued, “Our strong balance sheet continues to
provide safety and security to our stakeholders. We believe our
balance sheet strength is reflected in the level of allowance for
credit losses held by us, and our strong regulatory capital
position. In addition, our focus to reduce loan concentrations in
our ADC and commercial real estate portfolios and the tightening of
our overall underwriting standards over the last several years will
help to mitigate the potential negative effects the economic
shutdown from the pandemic may have on our loan portfolio. Lastly,
our strong liquidity position provides us the flexibility to
aggressively grow our loan portfolio as the economy begins to
recover.”
COVID-19 Pandemic and Utah Economy
The State of Utah has developed a COVID-19 Transmission Index
(“Transmission Index”), which categorizes levels of transmission as
High, Moderate, or Low. Each county receives a rating every week.
The Company’s COVID-19 pandemic response plan directly correlates
to the State’s Transmission Index. The counties where our branches
are located presently have a Transmission Index of High. As a
result, all of our branch lobbies are available by appointment
only, while our drive-up windows remain open. To ensure the safety
of our associates and clients, we require masks to be worn in all
branch locations and in our back office locations, when associates
are unable to socially distance from other associates.
Approximately 60% of our workforce remains working from home and
will continue to do so until the Transmission Index in the
corresponding county moves to Low.
The Company is fortunate to operate in a region that appears to
be weathering the COVID-19 pandemic fairly well economically. The
Utah economy has performed better than the nation as a whole during
the pandemic with an unemployment rate at 3.6% at the end of
December 2020 compared with 6.7% for the nation for the same
period. Commercial and consumer construction activities remain
strong with overall construction jobs increasing 5.4%
year-over-year. Utah’s total personal income rose 8.8% for all of
2020. Utah’s growth rate ranked seventh in the nation. Nationally,
personal income only increased 7.4% over the same period. Utah’s
house prices were up 9.1% for all of 2020. The Company expects that
the Utah economy will continue to perform better than most states
in the U.S.
Small Business Administration Paycheck Protection Program
(“SBA PPP”)
The Company funded 333 loans, totaling $84.6 million under the
SBA‘s PPP loan program. As of the date of this earnings release,
the Company has filed 150 forgiveness applications, (approximately
45%) with the SBA, totaling $39.7 million and has received loan
forgiveness on 121 loans, totaling $28.2 million, or 33% of all SBA
PPP loans funded. As of the date of this earnings release, the
Company has not received a denial on any application submitted to
the SBA for loan forgiveness. The Company is participating in the
PPPL facility offered by the Federal Reserve to fund SBA PPP loans
and to receive regulatory capital relief for such loans. The
Company expects to have most of its SBA PPP first round loans
forgiven by the end of the second quarter 2021. The Company is
participating in the SBA PPP second round loan program.
Loan Accommodations
The Company offered a temporary loan payment relief program of
deferments up to six months to clients impacted by the COVID-19
pandemic. Under rare circumstances, deferred loans will be
re-evaluated at the end of the deferral period. To qualify for a
second loan deferral, the Company will require a full
re-underwriting of the credit.
As of the date of this earnings release, the Company offered
temporary loan payment relief to 415 businesses and 106 individuals
totaling approximately $320 million, or 19% of total loans,
excluding SBA PPP loans, to address cash flow challenges for those
impacted by the COVID-19 pandemic. To the date of this earning
release, the deferral period had ended for 439 clients, or 84%, for
loans totaling $278 million. This leaves only 81 clients, or 16%,
for loans totaling $42.0 million still on deferral.
At December 31, 2020, there were only three clients with small
balance loans totaling $0.02 million, who have not made a
subsequent loan payment for 30 days or greater, after their payment
deferment agreement expired. We entered into another loan payment
deferment agreement with two clients, who had an initial loan
payment deferment agreement. Total dollars outstanding for these
two clients is $8.4 million. Since these loans were performing
loans that were current on their payments prior to the COVID-19
pandemic, these modifications are not considered to be troubled
debt restructurings pursuant to applicable accounting and
regulatory guidance.
Loan Credit Quality Trends
Non-performing loans increased to $9.1 million at December 31,
2020, compared with $8.8 million at December 31, 2019.
Non-performing loans to total loans were 0.54% at December 31,
2020, compared with 0.53% at December 31, 2019. Non-performing
assets increased to $9.1 million at December 31, 2020, compared
with $8.8 million at December 31, 2019. Non-performing assets to
total assets were 0.27% at December 31, 2020, compared with 0.37%
at December 31, 2019.
Allowance for Credit Losses
The allowance for credit losses increased $9.8 million, or
31.22%, to $41.2 million at December 31, 2020, compared with $31.4
million the same period a year ago. The allowance for credit losses
to loans held for investment was 2.43% at December 31, 2020,
compared with 1.87% at December 31, 2019.
Loans
Loans held for investment grew $14.6 million, or 0.87%, to $1.70
billion at December 31, 2020, compared with $1.68 billion at
December 31, 2019. Year-to-date average loans increased $8.9
million, or 0.53%, to $1.69 billion for the twelve months ended
December 31, 2020, compared with $1.68 billion for the twelve
months ended December 31, 2019. Loans were flat year-over-year
primarily as a result of the Company aggressively managing overall
loan concentrations and tightening credit underwriting standards.
The Company expects that overall loan growth will be strong during
2021 as it focuses on deploying excess liquidity.
Deposits and Liabilities
Total deposits increased $860 million, or 41.82%, to $2.92
billion at December 31, 2020, compared with $2.06 billion at
December 31, 2019. Non-interest bearing deposits increased, $320
million, or 44.54%, to $1.04 billion at December 31, 2020, compared
with the same period a year earlier, and interest bearing deposits
increased, $540 million, or 40.35%, to $1.88 billion at December
31, 2020, compared with the same period a year ago.
Non-interest-bearing deposits to total deposits were 35.66% as of
December 31, 2020, compared with 34.98% as of December 31,
2019.
Shareholders’ Equity
Shareholders’ equity increased by $38.8 million, or 11.67%, to
$371 million at December 31, 2020, compared with $332 million at
December 31, 2019. The increase resulted primarily from net income
earned during the intervening periods, change in accumulated other
comprehensive income resulting from changes in the fair market
value of investment securities available for sale, due to a decline
in overall interest rates; offset by share repurchases and cash
dividends paid to shareholders.
The Company’s leverage capital ratio was 10.38% at December 31,
2020, compared with 12.67% at December 31, 2019. The total
risk-based capital ratio was 19.17% at December 31, 2020 compared
with 18.43% at December 31, 2019. The Company’s regulatory capital
ratios were negatively impacted by the adoption of ASU 2016-13
(“CECL”) and the Company election to take the full impact of such
adoption against its regulatory capital ratios during the first
quarter of 2020.
Net Interest Income and Margin
For the three months ended December 31, 2020, net interest
income decreased $2.2 million, or 8.07%, to $24.9 million, compared
with $27.1 million for the same period a year earlier. The decrease
is primarily the result of net interest margins narrowing 152 basis
points to 3.18% for the same comparable periods. The narrowing of
net interest margins is primarily the result of the Federal Reserve
reducing benchmark rates to almost zero and an increase in the
average amount of lower yielding cash and investment securities
held by the Company stemming from average core deposits increasing
$747 million, or 36.13%, for the same respective periods. Average
interest earning assets increased $830 million, or 36.27%, to $3.12
billion for the same comparable periods. The percentage of average
loans to total average interest earning assets decreased to 54.54%
for the three months ended December 31, 2020 compared with 73.73%
for the same period a year earlier.
Yields on interest earning assets declined 171 basis points to
3.38% for the three months ended December 31, 2020 compared with
5.09% for the same period a year earlier. The decline in yields on
interest earning assets is primarily the result of the average
amount of cash and investment securities held by the Company
increasing $816 million, or 136%, to $1.41 billion for the same
comparable periods with the yield on cash and securities declining
103 basis points to 0.96% for the fourth quarter of 2020 compared
with 1.99% for the same comparable periods. In addition, the yield
on loans declined 80 basis points to 5.40% compared with 6.20% for
the same comparable periods. Average loans outstanding increased
$13.6 million, or 0.81%, to $1.70 billion for the same comparable
periods.
For the three months ended December 31, 2020, total cost of
interest bearing liabilities decreased 33 basis points to 0.34%,
compared with 0.67% for the same period a year earlier. For the
three months ended December 31, 2020, the total cost of funds
decreased 22 basis points to 0.22%, compared with 0.44% for the
same period a year ago.
For the three months ended December 31, 2020, acquisition
accounting adjustments, including the accretion of loan discounts
and fair value amortization on time deposits, added 3 basis points
to net interest margin.
For the twelve months ended December 31, 2020, net interest
income decreased $6.2 million, or 5.64%, to $104 million compared
with $110 million for the same period a year earlier. The decrease
is primarily the result of net interest margins narrowing 127 basis
points to 3.79% for the same comparable periods. The narrowing of
net interest margins is primarily the result of the Federal Reserve
reducing benchmark rates to almost zero and an increase in the
average amount of lower yielding cash and investment securities
held by the Company stemming from average core deposits increasing
$492 million, or 25.03%, for the same respective periods. Average
interest earning assets increased $562 million, or 25.83%, to $2.74
billion for the same comparable periods. The percentage of average
loans to total average interest earning assets decreased to 61.86%
for the twelve months ended December 31, 2020 compared with 77.43%
for the same period a year earlier.
Yields on interest earning assets declined 143 basis points to
4.05% for the twelve months ended December 31, 2020 compared with
5.48% for the same period a year earlier. The decline in yields on
interest earning assets is primarily the result of the average
amount of cash and investment securities held by the Company
increasing $553 million, or 113%, to $1.04 billion for the same
comparable periods with the yield on cash and securities decreasing
69 basis points to 1.45% compared with 2.14% a year ago. In
addition, the yield on loans declined 80 basis points to 5.65%
compared with 6.45% for the same period a year earlier. Average
loans outstanding increased $8.9 million, or 0.53%, to $1.69
billion for the same comparable periods.
For the twelve months ended December 31, 2020, the total cost of
interest bearing liabilities decreased 27 basis points to 0.44%
compared with 0.71% for the same period a year earlier. For the
twelve months ended December 31, 2020, the total cost of funds
decreased 18 basis points to 0.28% compared with 0.46% for the same
period a year ago.
For the twelve months ended December 31, 2020, acquisition
accounting adjustments, including the accretion of loan discounts
and fair value amortization on time deposits, added 7 basis points
to net interest margin.
Provision for Credit Losses
The Company did not record any provision for credit losses for
the three months ended December 31, 2020, compared with $1.2
million for the same period a year earlier as calculated under the
prior incurred loss methodology. The provisions for the current and
preceding three quarters reflect expected lifetime credit losses
based upon the current conditions and the potential effects from
forecasted deterioration of economic metrics due to the COVID-19
pandemic based on the outlook as of December 31, 2020. The decrease
in provision for credit losses in the three months ended December
31, 2020 compared with the same period a year earlier is due
primarily to a $33 million, or 70.07%, decline in loans
individually evaluated for impairment to $14.2 million and the
related allowance for impairment of $9.4 million offset by a $36.7
million, or 2.23%, increase in loans collectively evaluated for
impairment to $1.7 billion and the related allowance of $31.9
million. For the three months ended December 31, 2020, the Company
incurred net charge-offs of $0.3 million, compared with net
recoveries of $0.2 million for the same period a year ago.
For the twelve months ended December 31, 2020, provision for
credit losses was $2.8 million compared with $7.0 million for the
same period a year earlier as calculated under the prior incurred
loss methodology. For the twelve months ended December 31, 2020,
the Company incurred net charge-offs of $2.4 million compared with
net charge-offs of $0.8 million for the same period a year ago.
“Our overall asset quality trends have improved throughout 2020
and charge-offs across our portfolios have remained relatively
low,” said Mark Olson, Executive Vice President and Chief Financial
Officer of AltabancorpTM. “We expect to see asset quality trends
begin to deteriorate and charge-offs to increase beginning in 2021
as the positive effects of government stimulus and loan payment
relief programs come to an end. We believe the allowance for credit
losses is adequate to cover our current expected credit losses.
However, we will continue to closely monitor macroeconomic
conditions and the overall performance of our loan portfolio to
determine if we should adjust our expectations of credit
losses.”
Noninterest Income
For the three months ended December 31, 2020, noninterest income
increased $2.7 million, or 70.79%, to $6.5 million, compared with
$3.8 million the same period a year ago. The increase was primarily
due to a $2.5 million, or 153%, increase in mortgage banking income
to $4.1 million compared with $1.6 million for the same period a
year ago resulting from higher volume and wider margins on loans
sold, which was favorably impacted by an increase in mortgage loan
refinances, as overall interest rates declined. Total mortgage
loans sold increased $60.9 million, or 98.9%, to $122 million for
the fourth quarter compared with the same period a year ago.
For the twelve months ended December 31, 2020, noninterest
income increased $7.2 million, or 47.73%, to $22.4 million compared
with $15.2 million for the same period a year earlier. The increase
in noninterest income was primarily due to a $5.9 million, or
87.55%, increase in mortgage banking income and a $1.4 million gain
on the sale of investment securities. Total mortgage loans sold
increased $120 million, or 54.0%, to $341 million for all of 2020
compared with the same period a year ago.
“We expect to continue to see improving noninterest income as we
expand our mortgage banking operations both in Utah and surrounding
states and reap the benefits of stronger leadership; and a
significant investment in the technology used in our mortgage
operations from an operational efficiency and enhanced client
experience perspective,” said Mr. Williams.
Noninterest Expense
For the three months ended December 31, 2020, noninterest
expense was $16.8 million, compared with $14.6 million for the same
period a year earlier. For the three months ended December 31,
2020, the Company’s efficiency ratio was 53.70% compared with
47.25% for the same period a year ago.
For the twelve months ended December 31, 2020, noninterest
expense was $66.1 million, compared with $60.3 million for the same
period a year earlier. For the twelve months ended December 31,
2020, the Company’s efficiency ratio was 52.44% compared with
48.18% for the same period a year ago.
The increase in noninterest expense for both the three and
twelve months ended December 31, 2020 was primarily the result of
higher salaries and associate benefits resulting primarily from
higher incentive payments, particularly in the mortgage banking
division. In addition, the Company has incurred higher data
processing expenses due to investments made in new technologies for
the mortgage banking division; technology investments made in the
commercial banking division, including costs for its cloud-based,
commercial loan origination application (nCino), including
automated processes for smaller ticket commercial loans (titled
AltaexpressTM), costs for the implementation of a Salesforce CRM
solution, costs for a new cloud-based, commercial client treasury
management solution; and costs for a new cloud-based, construction
budget, draw and inspection management solution for both commercial
and consumer clients. The Company expects to continue to make
significant investments in new technologies to enhance the client
experience and empower clients to transact more business on the
Company’s mobile platform; to lower the overall costs of its
operating platform; and to become more scalable as the Company
aggressively evaluates acquisition opportunities.
“We anticipate overall interest rates to remain near zero for
the foreseeable future,” said Mr. Olson. “As a result, we continue
to review our overall operating costs to determine how we can
better leverage our platform, while retaining our high-touch client
experience. We anticipate making changes over the next several
quarters to improve our overall operating leverage.”
Income Tax Provision
For the three months ended December 31, 2020, income tax expense
was $3.5 million, compared with $3.4 million for the same period a
year earlier. For the three months ended December 31, 2020, the
effective tax rate was 23.91% compared with 22.50% for the same
period a year ago.
For the twelve months ended December 31, 2020, income tax
expense was $13.7 million, compared with $13.5 million for the same
period a year earlier. For the twelve months ended December 31,
2020, the effective tax rate was 24.01% compared with 23.35% for
the same period a year ago.
Conference Call and Webcast
Management will host a conference call on Thursday, January 28,
2021 at 10:00 a.m. MDT (12:00 p.m. EDT) to discuss the Company’s
financial performance.
Investment professionals who wish to ask questions regarding the
Company’s financial performance will need to register to
participate in the call by January 27, 2021 by visiting
http://www.directeventreg.com/registration/event/6513568. Upon
registering, you will receive a confirmation with dial-in
details.
Other interested parties may listen to the call via a live
webcast. Additional information and a link to the webcast can be
found on the Company’s website at www.altabancorp.com.
An audio archive and written transcript of the conference call
will be available on the Company’s investor website within 24 hours
after the end of the call. Interested parties may listen to the
audio archive and read the written transcript for one month after
the call. Forward-looking statements may be made and other material
information may be discussed on this conference call.
Forward-Looking Statements
This press release may contain certain forward-looking
statements that are based on management's current expectations
regarding the Company’s financial performance. Forward-looking
statements can be identified by the fact that they do not relate
strictly to historical or current facts. They often include the
words “believe,” “expect,” “intend,” “estimate” or words of similar
meaning, or future or conditional verbs such as “will,” “would,”
“should,” “could” or “may.” Forward-looking statements in this
press release include, without limitation, statements regarding the
Company’s expectations for its financial performance, the Company’s
ability to respond to negative effects of the COVID-19 pandemic,
the Company’s ability to grow its loan portfolio, expected trends
in asset quality, the Company’s ability to grow and the effects of
expanding its mortgage banking operations, and the Company’s
ability to improve its operating leverage in response to low
overall interest rates. Factors that could cause future results to
vary materially from current management expectations include, but
are not limited to, the duration and impact of the COVID-19
pandemic, natural disasters, general economic conditions, economic
uncertainty in the United States, changes in interest rates,
deposit flows, real estate values, costs or effects of
acquisitions, competition, changes in accounting principles,
policies or guidelines, legislation or regulation, and other
economic, competitive, governmental, regulatory and technological
factors (including external fraud and cybersecurity threats)
affecting the Company's operations, pricing, products and services.
These and other important factors are detailed in the Company’s
Form 10-K, Form 10-Qs, and various other securities law filings
made periodically by the Company, copies of which are available
from the Company’s website. The Company undertakes no obligation to
release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date of this press release or to reflect
the occurrence of unanticipated events, except as required by
law.
About AltabancorpTM
AltabancorpTM (Nasdaq: ALTA) is the bank holding company for
AltabankTM, a full-service bank, providing loans, deposit and cash
management services to businesses and individuals through 26 branch
locations from Preston, Idaho to St. George, Utah. AltabankTM is
the largest community bank in Utah with total assets of $3.4
billion. Our clients have direct access to bankers and
decision-makers, who work with clients to understand their specific
needs and offer customized financial solutions. AltabankTM has been
serving communities in Utah and southern Idaho for more than 100
years. More information about AltabankTM is available at
www.altabank.com. More information about AltabancorpTM is available
at www.altabancorp.com.
ALTABANCORPTM
UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME
Three Months Ended
Year Ended
(Dollars in thousands, except
share
December 31,
September 30,
December 31,
December 31,
December 31,
and per share amounts)
2020
2020
2019
2020
2019
Interest income
Interest and fees on loans
$
23,095
$
22,896
$
26,378
$
95,565
$
108,530
Interest and dividends on investments
3,416
4,551
2,988
15,179
10,519
Total interest income
26,511
27,447
29,366
110,744
119,049
Interest expense
1,599
1,651
2,266
7,026
9,131
Net interest income
24,912
25,796
27,100
103,718
109,918
Provision for credit losses
-
-
1,200
2,750
7,000
Net interest income after provision for
credit losses
24,912
25,796
25,900
100,968
102,918
Non-interest income
Mortgage banking
4,129
3,850
1,631
12,725
6,785
Card processing
995
986
837
3,605
3,242
Service charges on deposit accounts
855
813
701
3,211
2,807
Net gain (loss) on sale of investment
securities
-
-
(4
)
1,441
(4
)
Other
475
468
614
1,445
2,351
Total non-interest income
6,454
6,117
3,779
22,427
15,181
Non-interest expense
Salaries and employee benefits
10,226
11,107
8,680
42,963
38,502
Occupancy, equipment and depreciation
1,321
1,155
1,581
4,846
6,034
Data processing
1,895
1,647
1,214
7,061
4,476
Marketing and advertising
291
584
681
1,646
1,828
FDIC premiums
221
183
5
569
249
Other
2,889
2,193
2,428
9,063
9,183
Total non-interest expense
16,843
16,869
14,589
66,148
60,272
Income before income tax
expense
14,523
15,044
15,090
57,247
57,827
Income tax expense
3,472
3,704
3,395
13,745
13,503
Net income
$
11,051
$
11,340
$
11,695
$
43,502
$
44,324
Earnings per common share:
Basic
$
0.59
$
0.60
$
0.62
$
2.31
$
2.35
Diluted
$
0.58
$
0.60
$
0.61
$
2.29
$
2.33
Weighted average common shares
outstanding:
Basic
18,814,970
18,796,401
18,859,994
18,821,361
18,822,103
Diluted
18,958,163
18,934,123
19,041,273
18,965,624
19,017,047
ALTABANCORPTM
UNAUDITED CONSOLIDATED BALANCE
SHEETS
December 31,
September 30,
June 30,
December 31,
(Dollars in thousands, except share
amounts)
2020
2020
2020
2019
ASSETS
Cash and due from banks
$
39,312
$
44,137
$
47,088
$
38,987
Interest-bearing deposits
197,769
180,773
275,920
171,955
Federal funds sold
2,793
74
829
1,039
Total cash and cash equivalents
239,874
224,984
323,837
211,981
Investment securities:
Available for sale, at fair value
1,320,393
1,123,051
973,457
405,995
Non-marketable equity securities
2,890
2,890
2,890
2,623
Loans held for sale
14,152
31,872
29,264
18,669
Loans:
Loans held for investment
1,695,496
1,697,135
1,659,018
1,680,918
Allowance for credit losses
(41,236
)
(41,495
)
(42,683
)
(31,426
)
Total loans held for investment,
net
1,654,260
1,655,640
1,616,335
1,649,492
Premises and equipment, net
37,380
37,966
38,673
39,474
Goodwill
25,673
25,673
25,673
25,673
Bank-owned life insurance
42,720
42,312
27,330
27,037
Deferred income tax assets
7,389
7,842
8,586
9,716
Accrued interest receivable
11,336
14,117
11,682
7,904
Other intangibles
2,528
2,638
2,749
2,970
Other real estate owned
-
-
-
-
Other assets
7,633
6,376
5,169
4,800
Total assets
$
3,366,228
$
3,175,361
$
3,065,645
$
2,406,334
LIABILITIES AND SHAREHOLDERS’
EQUITY
Deposits:
Non-interest bearing deposits
$
1,039,844
$
1,037,970
$
985,455
$
719,410
Interest-bearing deposits
1,876,464
1,678,809
1,627,884
1,336,957
Total deposits
2,916,308
2,716,779
2,613,339
2,056,367
Short-term borrowings
64,554
83,490
83,490
-
Accrued interest payable
616
487
408
546
Other liabilities
13,612
14,315
18,278
17,059
Total liabilities
2,995,090
2,815,071
2,715,515
2,073,972
Shareholders’ equity:
Preferred shares, $0.01 par value
-
-
-
-
Common shares, $0.01 par value
188
188
188
189
Additional paid-in capital
87,574
87,116
86,721
87,913
Retained earnings
269,157
260,929
252,032
242,878
Accumulated other comprehensive income
14,219
12,057
11,189
1,382
Total shareholders’ equity
371,138
360,290
350,130
332,362
Total liabilities and shareholders’
equity
$
3,366,228
$
3,175,361
$
3,065,645
$
2,406,334
Common shares outstanding
18,828,522
18,802,635
18,793,217
18,870,498
ALTABANCORPTM
SUMMARY FINANCIAL
INFORMATION
December 31,
September 30,
June 30,
December 31,
(Dollars in thousands, except share
amounts)
2020
2020
2020
2019
Selected Balance Sheet
Information:
Book value per share
$
19.71
$
19.16
$
18.63
$
17.61
Tangible book value per share
$
18.21
$
17.66
$
17.12
$
16.09
Non-performing loans to total loans
0.54
%
0.41
%
0.39
%
0.53
%
Non-performing assets to total assets
0.27
%
0.22
%
0.21
%
0.37
%
Allowance for credit losses to loans held
for investment
2.43
%
2.45
%
2.57
%
1.87
%
Loans to deposits
57.21
%
62.11
%
62.97
%
81.12
%
Asset Quality Data:
Non-performing loans
$
9,064
$
6,944
$
6,388
$
8,814
Non-performing assets
$
9,064
$
6,944
$
6,388
$
8,814
Capital Ratios:
Tier 1 leverage capital (1)
10.38
%
10.87
%
11.68
%
12.67
%
Total risk-based capital (1)
19.17
%
19.13
%
19.20
%
18.43
%
Average equity to average assets
11.15
%
11.68
%
12.57
%
13.63
%
Tangible common equity to tangible assets
(2)
10.27
%
10.55
%
10.59
%
12.77
%
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2020
2020
2019
2020
2019
Selected Financial Information:
Basic earnings per share
$
0.59
$
0.60
$
0.62
$
2.31
$
2.35
Diluted earnings per share
$
0.58
$
0.60
$
0.61
$
2.29
$
2.33
Net interest margin (3)
3.18
%
3.52
%
4.70
%
3.79
%
5.06
%
Efficiency ratio
53.70
%
52.86
%
47.25
%
52.44
%
48.18
%
Non-interest income to average assets
0.79
%
0.79
%
0.62
%
0.78
%
0.66
%
Non-interest expense to average assets
2.05
%
2.19
%
2.40
%
2.30
%
2.62
%
Annualized return on average assets
1.34
%
1.47
%
1.92
%
1.52
%
1.93
%
Annualized return on average equity
12.06
%
12.62
%
14.10
%
12.44
%
14.14
%
Net charge-offs
$
259
$
1,188
$
245
$
2,406
$
819
Annualized net charge-offs to average
loans
0.06
%
0.28
%
0.06
%
0.14
%
0.05
%
________________________________
(1) Tier 1 leverage capital and Total risk-based capital as of
December 31, 2020 are estimates. (2) Represents the sum of total
shareholders’ equity less intangible assets all divided by the sum
of total assets less intangible assets. Intangible assets were
$28.2 million, $28.3 million, $28.4 million, and $28.6 million at
December 31, 2020, September 30, 2020, June 30, 2020, and December
31, 2019, respectively. (3) Net interest margin is defined as net
interest income divided by average earning assets.
ALTABANCORPTM
SELECTED AVERAGE BALANCES AND
YIELDS
Three Months Ended
December 31, 2020
December 31, 2019
Interest
Average
Interest
Average
Average
Income/
Yield/
Average
Income/
Yield/
(Dollars in thousands, except
footnotes)
Balance
Expense
Rate
Balance
Expense
Rate
ASSETS
Interest-earning deposits in other banks
and federal funds sold
$
258,138
$
56
0.09
%
$
255,637
$
1,059
1.64
%
Securities: (1)
Taxable securities
1,118,681
3,146
1.12
%
288,209
1,638
2.25
%
Non-taxable securities (2)
38,094
192
2.01
%
54,834
270
1.95
%
Total securities
1,156,775
3,338
1.15
%
343,043
1,908
2.21
%
Loans (3)
Real estate term
1,003,395
13,051
5.17
%
940,033
13,928
5.88
%
Construction and land development
234,103
3,775
6.42
%
282,212
5,334
7.50
%
Commercial and industrial
268,856
4,089
6.05
%
276,417
4,489
6.44
%
Residential and home equity
185,324
1,994
4.28
%
171,652
2,380
5.50
%
Consumer and other
9,425
186
7.86
%
17,193
247
5.70
%
Total loans
1,701,103
23,095
5.40
%
1,687,507
26,378
6.20
%
Non-marketable equity securities
2,890
22
3.05
%
2,623
21
3.25
%
Total interest-earning assets
3,118,906
26,511
3.38
%
2,288,810
29,366
5.09
%
Allowance for credit losses
(41,715
)
(30,544
)
Non-interest earning assets
192,032
156,198
Total average assets
$
3,269,223
$
2,414,464
LIABILITIES AND SHAREHOLDERS’
EQUITY
Interest-bearing deposits:
Demand and savings accounts
$
1,089,552
603
0.22
%
$
838,627
880
0.42
%
Money market accounts
519,644
446
0.34
%
329,570
782
0.94
%
Certificates of deposit
166,028
486
1.16
%
171,592
604
1.40
%
Total interest-bearing deposits
1,775,224
1,535
0.34
%
1,339,789
2,266
0.67
%
Short-term borrowings
76,577
64
0.33
%
-
-
0.00
%
Total interest-bearing
liabilities
1,851,801
1,599
0.34
%
1,339,789
2,266
0.67
%
Non-interest bearing deposits
1,038,128
726,850
Total funding
2,889,929
1,599
0.22
%
2,066,639
2,266
0.44
%
Other non-interest bearing liabilities
14,870
18,730
Shareholders’ equity
364,424
329,095
Total average liabilities and
shareholders’ equity
$
3,269,223
$
2,414,464
Net interest income
$
24,912
$
27,100
Interest rate spread
3.04
%
4.42
%
Net interest margin
3.18
%
4.70
%
________________________________
(1) Excludes average unrealized gains of $13.8 million and $1.6
million for the three months ended December 31, 2020 and 2019,
respectively. (2) Does not include tax effect on tax-exempt
investment security income of $64,000 and $90,000 for the three
months ended December 31, 2020 and 2019, respectively. (3) Loan
interest income includes loan fees of $2.3 million and $1.7 million
for the three months ended December 31, 2020 and 2019,
respectively.
ALTABANCORPTM
SELECTED AVERAGE BALANCES AND
YIELDS
Year Ended
December 31, 2020
December 31, 2019
Interest
Average
Interest
Average
Average
Income/
Yield/
Average
Income/
Yield/
(Dollars in thousands, except
footnotes)
Balance
Expense
Rate
Balance
Expense
Rate
ASSETS
Interest-earning deposits in other banks
and federal funds sold
$
201,819
$
475
0.24
%
$
149,452
$
2,950
1.97
%
Securities: (1)
Taxable securities
795,000
13,739
1.73
%
275,482
6,274
2.28
%
Non-taxable securities (2)
43,703
879
2.01
%
63,074
1,198
1.90
%
Total securities
838,703
14,618
1.74
%
338,556
7,472
2.21
%
Loans (3)
Real estate term
963,449
52,980
5.50
%
910,396
54,302
5.96
%
Construction and land development
252,614
16,831
6.66
%
302,735
23,889
7.89
%
Commercial and industrial
287,212
16,758
5.83
%
287,358
19,746
6.87
%
Residential and home equity
177,069
8,168
4.61
%
165,903
9,580
5.77
%
Consumer and other
11,874
828
6.97
%
16,907
1,013
5.99
%
Total loans
1,692,218
95,565
5.65
%
1,683,299
108,530
6.45
%
Non-marketable equity securities
2,828
86
3.04
%
2,703
97
3.60
%
Total interest-earning assets
2,735,568
110,744
4.05
%
2,174,010
119,049
5.48
%
Allowance for credit losses
(42,226
)
(27,675
)
Non-interest earning assets
176,846
152,402
Total average assets
$
2,870,188
$
2,298,737
LIABILITIES AND SHAREHOLDERS’
EQUITY
Interest-bearing deposits:
Demand and savings accounts
$
961,761
2,512
0.26
%
$
814,635
3,790
0.47
%
Money market accounts
436,475
2,191
0.50
%
291,045
2,822
0.97
%
Certificates of deposit
170,034
2,164
1.27
%
177,629
2,455
1.38
%
Total interest-bearing deposits
1,568,270
6,867
0.44
%
1,283,309
9,067
0.71
%
Short-term borrowings
46,304
159
0.34
%
2,420
64
2.63
%
Total interest-bearing
liabilities
1,614,574
7,026
0.44
%
1,285,729
9,131
0.71
%
Non-interest bearing deposits
889,274
682,284
Total funding
2,503,848
7,026
0.28
%
1,968,013
9,131
0.46
%
Other non-interest bearing liabilities
16,634
17,299
Shareholders’ equity
349,706
313,425
Total average liabilities and
shareholders’ equity
$
2,870,188
$
2,298,737
Net interest income
$
103,718
$
109,918
Interest rate spread
3.61
%
4.77
%
Net interest margin
3.79
%
5.06
%
________________________________
(1) Excludes average unrealized gains (losses) of $11.3 million
and ($1.2) million for the year-ended December 31, 2020 and 2019,
respectively. (2) Does not include tax effect on tax-exempt
investment security income of $293,000 and $399,000 for the
year-ended December 31, 2020 and 2019, respectively. (3) Loan
interest income includes loan fees of $7.3 million and $6.6 million
for the year-ended December 31, 2020 and 2019, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210127005993/en/
Investor Relations Contact Mark K. Olson Executive Vice
President and Chief Financial Officer AltabancorpTM
investorrelations@altabancorp.com Phone: 801-642-3998
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