Q2-2021 Highlights
- Loans held for investment grew $76.7 million, or 17.1% on an
annualized basis, for the second quarter and $178 million, or 21.2%
on an annualized basis, for six months of 2021 to $1.87
billion.
- Total deposits declined $2.3 million for the second quarter but
grew $240 million for six months of 2021 to $3.16 billion.
- Cash and liquid investment securities declined $57.0 million
for the second quarter, or 14.2% on an annualized basis, to $1.56
billion, or 44% of total assets, at June 30, 2021.
- Return on average assets was 1.44% and return on average equity
was 14.12% for the three months ended June 30, 2021.
Altabancorp™ (Nasdaq: ALTA) (the “Company” or “ALTA”), the
parent company of Altabank™, reported net income of $12.7 million
for the second quarter of 2021, compared with $9.4 million for the
first quarter of 2021, and $10.3 million for the second quarter of
2020. Diluted earnings per common share were $0.67 for the second
quarter of 2021, compared with $0.50 for the first quarter of 2021,
and $0.55 for the second quarter of 2020. For the six months ended
June 30, 2021 net income was $22.1 million, or $1.16 per diluted
common share, compared with $21.1 million, or $1.11 per diluted
common share, for the same period a year earlier.
Annualized return on average assets was 1.44% for the second
quarter of 2021, compared with 1.13% for the first quarter of 2021,
and 1.52% for the second quarter of 2020. Annualized return on
average equity was 14.12% for the second quarter of 2021 compared
with 10.30% for the first quarter of 2021, and 12.06% for the
second quarter of 2020. For the six months ended June 30, 2021,
return on average assets was 1.29% and return on average equity was
12.20% compared with 1.65% and 12.55% for the same respective
measures a year earlier.
The Board of Directors declared a quarterly dividend payment of
$0.17 per common share. The dividend will be payable on August 16,
2021 to shareholders of record as of August 9, 2021. The dividend
payout ratio for earnings for the second quarter of 2021 was 25.9%.
This continues the over 50-year trend of paying dividends by the
Company.
“We are pleased to have achieved strong loan growth and solid
financial performance for the first half of 2021,” said Len
Williams, President and Chief Executive Officer of Altabancorp™.
“Loans held for investment has grown $178 million, or 21% on an
annualized basis. Our unfunded commitments, which is primarily from
our construction lending activities, have grown $160 million, or
46.75% on an annualized basis; and our loan pipeline has also
significantly increased over the same period.”
Mr. Williams continued, “For the past couple of years, we have
completed several initiatives to improve the overall credit quality
of our loan portfolio, including lowering our overall loan
concentrations both in terms of product type and asset class;
tightening of our overall underwriting standards; improving our
sales and credit processes; and enhancing technology in the
commercial lending space. With these initiatives substantially
complete, our existing and recently hired commercial lenders have
the tools and processes in place to aggressively and safely grow
our loan book. Our loan growth for the first half of 2021 reflects
the success of these initiatives. In addition, Utah has one of the
strongest economies in the nation and we have significant liquidity
that provides us with the flexibility to grow our loan
portfolio.”
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 monitors the State’s
Transmission Index and takes into account local mandates and
guidance. The Governor of Utah signed a bill lifting the statewide
mask mandate on April 10, 2021. The Company has reopened all of its
branch lobbies. The Company has also brought some of its
operational teams back to its facilities. The Company anticipates
that some of its staff will remain working from home for the
foreseeable future.
The Company is fortunate to operate in a region that appears to
be weathering the COVID-19 pandemic well economically. The Utah
economy has performed better than the nation as a whole during the
pandemic with an unemployment rate of 2.7% at the end of June 2021
compared with 5.9% for the nation for the same period. Utah
experienced a 6.4% year-over-year increase in total jobs at June
30, 2021 compared with 5.7% for the nation for the same period. 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”)
Under the first round of the SBA PPP loan program, the Company
funded 333 loans, totaling $84.6 million. The Company has filed 274
forgiveness applications, (approximately 82%) with the SBA,
totaling $69.3 million and has received loan forgiveness on 267
loans, totaling $66.1 million, or 80% of all SBA PPP loans funded.
To date, the Company has not received a denial on any loan
forgiveness application submitted to the SBA. Under the second
round of the SBA PPP loan program, the Company has funded 221
loans, totaling $31.8 million. Total SBA PPP loans declined $13.1
million, or 21.62%, to $47.5 million at June 30, 2021, compared
with $60.6 million at December 31, 2020.
Loan Accommodations
The Company offered a loan deferment relief program of up to six
months to clients impacted by the COVID-19 pandemic. Under rare
circumstances, 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.
The Company offered temporary loan payment relief to 445
businesses and 118 individuals totaling approximately $345 million
to address cash flow challenges for those impacted by the COVID-19
pandemic. The deferral period has ended for all 563 clients. We
entered into another loan payment deferment agreement with six
clients, who had an initial loan payment deferment agreement. Total
dollars outstanding for these clients is $19.0 million. There are
six other clients with outstanding balances totaling $1.4 million,
who have not made a subsequent loan payment for 30 days or greater,
after their payment deferment agreement expired. We have
charged-off $0.1 million on these six accounts. 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 were $7.2 million at June 30, 2021,
compared with $6.4 million at June 30, 2020. Non-performing loans
to total loans were 0.39% at June 30, 2021, compared with 0.39% at
June 30, 2020. Non-performing assets were also $7.2 million at June
30, 2021, compared with $6.4 million at June 30, 2020.
Non-performing assets to total assets were 0.20% at June 30, 2021,
compared with 0.21% at June 30, 2020.
Allowance for Credit Losses
The allowance for credit losses declined by $7.7 million, or
18.1%, to $35.0 million at June 30, 2021, compared with $42.7
million the same period a year ago. The decline is due to a $5.0
million recapture of provision for credit losses in the second
quarter of 2021 with the remaining $2.7 million the result of net
charge-offs recorded over the past four quarters. The allowance for
credit losses to loans held for investment was 1.87% at June 30,
2021, compared with 2.57% at June 30, 2020.
Loans
Loans held for investment grew $212 million, or 12.8%, to $1.87
billion at June 30, 2021, compared with $1.66 billion at June 30,
2020. Year-to-date average loans increased $106 million, or 6.3%,
to $1.79 billion for the six months ended June 30, 2021, compared
with $1.69 billion for the same period a year ago. The Company
expects that overall loan growth will be in the low-double digits
for all of 2021.
Deposits and Liabilities
Total deposits increased $543 million, or 20.8%, to $3.16
billion at June 30, 2021, compared with $2.61 billion at June 30,
2020. Non-interest bearing deposits increased, $160 million, or
16.2%, to $1.1 billion at June 30, 2021, compared with $985 million
for the same period a year earlier. Interest bearing deposits
increased $384 million, or 23.6%, to $2.01 billion at June 30,
2021, compared with $1.63 billion for the same period a year ago.
Non-interest-bearing deposits to total deposits were 36.3% as of
June 30, 2021, compared with 37.7% as of June 30, 2020.
Shareholders’ Equity
Shareholders’ equity increased by $20.5 million, or 5.9%, to
$371 million at June 30, 2021, compared with $350 million at June
30, 2020. The increase is primarily the result of $33.6 million, or
13.3%, in retained earnings offset by accumulated other
comprehensive income declining $14.6 million to a $3.4 million
unrealized loss at June 30, 2021, compared with unrealized income
of $11.2 million at June 30, 2020 resulting from the impact that
higher interest rates have on the fair value of investment
securities held for sale.
The Company’s leverage capital ratio was 9.84% at June 30, 2021,
compared with 11.68% at June 30, 2020. The total risk-based capital
ratio was 18.18% at June 30, 2021, compared with 19.20% at June 30,
2020.
Net Interest Income and Margin
For the three months ended June 30, 2021, net interest income
decreased $0.5 million, or 1.91%, to $25.3 million, compared with
$25.8 million for the same period a year earlier. The decrease is
primarily the result of net interest margins narrowing 99 basis
points to 2.97% 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
$797 million, or 33.78%, for the same respective periods. Average
interest earning assets increased $804 million, or 30.72%, to $3.42
billion for the same comparable periods. The percentage of average
loans to total average interest earning assets decreased to 53.97%
for the three months ended June 30, 2021 compared with 64.75% for
the same period a year earlier.
Yield on interest earning assets declined 107 basis points to
3.14% for the three months ended June 30, 2021 compared with 4.21%
for the same period a year earlier. The decline in yield on
interest earning assets is primarily the result of the average
amount of cash and investment securities held by the Company
increasing $650 million, or 70.74%, to $1.57 billion for the same
comparable periods with the yield on cash and investment securities
declining 57 basis points to 1.06% for the second quarter of 2021
compared with 1.63% for the same comparable periods. This decline
is primarily the result of yield on investment securities declining
105 basis points to 1.09% for the same comparable periods as
prepayment rates on mortgage-backed securities remained elevated in
the second quarter of 2021.
In addition, the yield on loans declined 71 basis points to
4.90% for the second quarter of 2021 compared with 5.61% for the
same comparable periods. Average loans outstanding increased $152
million for the second quarter of 2021, or 8.95%, to $1.85 billion
for the same comparable periods.
For the three months ended June 30, 2021, total cost of interest
bearing liabilities decreased 14 basis points to 0.29%, compared
with 0.43% for the same period a year earlier and the total cost of
funds decreased 8 basis points to 0.19%, compared with 0.27% for
the same period a year ago.
For the three months ended June 30, 2021, acquisition accounting
adjustments, including the accretion of loan discounts and fair
value amortization on time deposits, added three basis points to
net interest margin.
For the six months ended June 30, 2021, net interest income
decreased $4.1 million, or 7.76%, to $48.9 million, compared with
$53.0 million for the same period a year earlier. The decrease is
primarily the result of net interest margins narrowing 141 basis
points to 2.94% 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
$866 million, or 39.25%, for the same respective periods. Average
interest earning assets increased $903 million, or 36.85%, to $3.35
billion for the same comparable periods. The percentage of average
loans to total average interest earning assets decreased to 53.45%
for the six months ended June 30, 2021 compared with 68.82% for the
same period a year earlier.
Yield on interest earning assets declined 154 basis points to
3.12% for the six months ended June 30, 2021 compared with 4.66%
for the same period a year earlier. The decline in yield on
interest earning assets is primarily the result of the average
amount of cash and investment securities held by the Company
increasing $796 million, or 105%, to $1.56 billion for the same
comparable periods with the yield on cash and investment securities
declining 52 basis points to 0.42% for the six months ended June
30, 2021 compared with 0.94% for the same comparable periods. This
decline is primarily the result of yield on investment securities
declining 141 basis points to 0.89% for the same comparable periods
as prepayment rates on mortgage-backed securities remained elevated
for the six months ended June 30, 2021.
In addition, the yield on loans declined 80 basis points to
5.11% for the six months ended 2021 compared with 5.91% for the
same comparable periods. Average loans outstanding increased $106
million, or 6.28%, to $1.79 billion for the same comparable
periods.
For the six months ended June 30, 2021, total cost of interest
bearing liabilities decreased 23 basis points to 0.30%, compared
with 0.53% for the same period a year earlier and the total cost of
funds decreased 14 basis points to 0.20%, compared with 0.34% for
the same period a year ago.
For the six months ended June 30, 2021, acquisition accounting
adjustments, including the accretion of loan discounts and fair
value amortization on time deposits, added four basis points to net
interest margin.
Provision for Credit Losses
The Company recorded a recapture of provision for credit losses
of $5.0 million for the second quarter of 2021 compared with the
recording of provision for credit losses of $2.1 million for the
same period a year ago. For the six months ended June 30, 2021, the
Company recorded a recapture of provision for credit losses of $5.0
million compared with the recording of provision for credit losses
of $2.8 million for the same period a year earlier. The recapture
of provision for credit losses is primarily the result of lower
qualitative factors applied in the Company’s current expected
credit losses model as forecasted economic indicators have improved
and the negative effects of the COVID-19 pandemic have abated. The
provision for credit losses recorded during the first half a year
ago reflected the deterioration in forecasted economic indicators
and the economic outlook resulting from the negative effects of the
COVID-19 pandemic.
The Company incurred net recoveries of $0.3 million for the
three months ended June 30, 2021, compared with net charge-offs of
$0.7 million for the same period a year ago. For the six months
ended June 30, 2021, the Company incurred net recoveries of $0.1
million compared with net charge-offs $1.0 million for the same
period a year earlier.
Noninterest Income
Noninterest income decreased $0.8 million, or 13.47%, to $5.3
million for the three months ended June 30, 2021, compared with
$6.1 million the same period a year ago. The decrease was primarily
due to the Company recording a $1.4 million gain on sale of $127
million in investment securities during the second quarter of 2020
and a $0.6 million decline in mortgage banking income as mortgage
loans sold declined $26.0 million, or 34.0%, to $50.6 million for
the second quarter of 2021 compared with the same period a year
earlier.
For the six months ended June 30, 2021, noninterest income
increased $0.8 million, or 8.30% to $10.7 million compared with the
same period a year ago. The increase is the result of $1.2 million
higher other operating income, $0.7 million in higher card
processing income, and $0.4 million in higher mortgage banking
income even as mortgage loans sold decreased $14.3 million, or
11.3%, to $112 million compared with the same respective period a
year earlier as margins on loans sold improved.
Noninterest Expense
Noninterest expense was $18.9 million for the three months ended
June 30, 2021 compared with $16.3 million for the same period a
year earlier. For the six months ended June 30, 2021, noninterest
expense was $35.4 million compared with $32.4 million for the same
period a year ago. The Company’s efficiency ratio was 61.64% for
the three months ended June 30, 2021 compared with 51.01% for the
same period a year ago. For the six months ended June 30, 2021, the
Company’s efficiency ratio was 59.43% compared with 51.60% for the
same period a year earlier.
Noninterest expense for both the three and six months ended June
30, 2021 was impacted by the Company recording $2.2 million in
costs associated with merger-related activities. The Company
expects to continue to record additional merger-related costs until
the closing of the sale to Glacier Bancorp, Inc. in the fourth
quarter.
The increase in noninterest expense for the three and six months
ended June 30, 2021 was also the result of higher data processing
expenses due to technology investments made by the Company.
Additionally, the Company recorded higher FDIC insurance premiums
in 2021 compared with 2020 as the Company was able to apply the
small bank assessment credits in 2020.
Lastly, the increase in noninterest expense was also the result
of higher salaries and employee benefits due to higher incentive
payments paid for net loan growth and mortgage loan
originations.
Income Tax Provision
The Company recorded income tax expense of $4.0 million for the
three months ended June 30, 2021 compared with $3.2 million for the
same period a year earlier due primarily to higher income. For the
three months ended June 30, 2021, the effective tax rate was
24.11%, compared with 23.59% for the same period a year ago.
For the six months ended June 30, 2021, income tax expense was
$7.0 million compared with $6.6 million for the same period a year
earlier due primarily to higher income. For the six months ended
June 30, 2020, the effective tax rate was 24.10% compared with
23.73% for the same period a year ago.
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, certain
plans, expectations, goals, projections, and statements about the
benefits of the proposed business combination between the Company
and Glacier Bancorp, Inc. (GBCI) and the expected timing of
completion of the transaction, 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.
Additional Information and Where to
Find It
As previously disclosed in the Company’s Form 8-K filed on May
19, 2021, subject to certain customary closing conditions, the
Company is to be acquired by Glacier Bancorp, Inc. (GBCI). This
communication may be considered as being made in respect of the
proposed business combination involving the Company and Glacier
Bancorp, Inc. In connection with the proposed transaction, GBCI has
filed with the SEC a Registration Statement on Form S-4 that
included a preliminary proxy statement of the Company and that will
also constitute a prospectus of GBCI. The preliminary proxy
statement/prospectus and this communication are not offers to sell
GBCI securities, are not soliciting an offer to buy GBCI securities
in any state where the offer and sale is not permitted and are not
a solicitation of any vote or approval. The definitive proxy
statement/prospectus will be mailed to shareholders of the
Company.
THE COMPANY AND GBCI URGE INVESTORS AND SECURITY HOLDERS TO READ
THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED
WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.
Investors and security holders will be able to obtain these
materials (when they are available) and other documents filed with
the SEC free of charge at the SEC’s website, www.sec.gov. Copies of
documents filed with the SEC by the Company (when they become
available) may be obtained free of charge on the Company’s website
at www.altabancorp.com or by directing a written request to
Altabancorp, 1 East Main Street, American Fork, Utah 84003, ATTN:
Corporate Secretary. Copies of documents filed with the SEC by GBCI
(when they become available) may be obtained free of charge on
GBCI’s website at www.glacierbancorp.com or by directing a written
request to Glacier Bancorp, Inc., 49 Commons Loop, Kalispell,
Montana 59901, ATTN: Corporate Secretary.
Participants in the
Solicitation
Each of the Company, GBCI and their respective directors,
executive officers and certain other members of management and
employees may be deemed to be participants in the solicitation of
proxies in respect of the proposed transaction. Information
regarding these persons who may, under the rules of the SEC, be
considered participants in the solicitation of the Company’s
shareholders in connection with the proposed transaction and
information regarding the identity of the participants and their
direct or indirect interests in the transaction, by security
holdings or otherwise, will be set forth in the proxy
statement/prospectus described above when filed with the SEC.
Additional information regarding the Company’s executive officers
and directors is included in the Company’s Amendment No. 1 to its
Annual Report on Form 10-K, which was filed with the SEC on April
29, 2021. Additional information regarding GBCI’s executive
officers and directors is included in GBCI’s definitive proxy
statement, which was filed with the SEC on March 16, 2021. You can
obtain free copies of these documents using the information in the
paragraph immediately above.
About Altabancorp™
Altabancorp™ (Nasdaq: ALTA) is the bank holding company for
Altabank™, a full-service bank, providing loans, deposit and cash
management services to businesses and individuals through 25 branch
locations from Preston, Idaho to St. George, Utah. Altabank™ is the
largest community bank in Utah with total assets of $3.5 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. Altabank™ has been serving
communities in Utah and southern Idaho for more than 100 years.
More information about Altabank™ is available at www.altabank.com.
More information about Altabancorp™ is available at
www.altabancorp.com.
ALTABANCORP™
UNAUDITED CONSOLIDATED
STATEMENTS OF INCOME
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
(Dollars in thousands, except share
and per share amounts)
2021
2021
2020
2021
2020
Interest income
Interest and fees on loans
$
22,573
$
22,814
$
23,649
$
45,387
$
49,574
Interest and dividends on investments
4,190
2,330
3,753
6,520
7,212
Total interest income
26,763
25,144
27,402
51,907
56,786
Interest expense
1,466
1,546
1,613
3,012
3,776
Net interest income
25,297
23,598
25,789
48,895
53,010
(Recapture) / provision for credit
losses
(5,000
)
-
2,100
(5,000
)
2,750
Net interest income after provision for
credit losses
30,297
23,598
23,689
53,895
50,260
Non-interest income
Mortgage banking
2,404
2,781
3,036
5,185
4,746
Card processing
1,211
1,071
917
2,282
1,624
Service charges on deposit accounts
651
692
763
1,343
1,543
Net gain on sale of investment
securities
-
206
1,441
206
1,441
Other
1,026
632
(41
)
1,658
502
Total non-interest income
5,292
5,382
6,116
10,674
9,856
Non-interest expense
Salaries and employee benefits
10,707
11,087
10,786
21,794
21,630
Occupancy, equipment and depreciation
1,209
1,195
831
2,404
2,370
Data processing
2,434
1,849
2,383
4,283
3,519
Marketing and advertising
330
306
339
636
771
FDIC premiums
247
226
165
473
165
Acquisition-related costs
2,215
-
-
2,215
-
Other
1,713
1,882
1,771
3,595
3,981
Total non-interest expense
18,855
16,545
16,275
35,400
32,436
Income before income tax
expense
16,734
12,435
13,530
29,169
27,680
Income tax expense
4,034
2,997
3,192
7,031
6,569
Net income
$
12,700
$
9,438
$
10,338
$
22,138
$
21,111
Earnings per common share:
Basic
$
0.67
$
0.50
$
0.55
$
1.17
$
1.12
Diluted
$
0.67
$
0.50
$
0.55
$
1.16
$
1.11
Weighted average common shares
outstanding:
Basic
18,876,688
18,864,497
18,789,561
18,870,626
18,837,209
Diluted
19,036,575
19,019,682
18,932,511
19,028,175
18,985,319
ALTABANCORP™
UNAUDITED CONSOLIDATED BALANCE
SHEETS
June 30,
March 31,
December 31,
June 30,
(Dollars in thousands, except share
amounts)
2021
2021
2020
2020
ASSETS
Cash and due from banks
$
35,446
$
33,254
$
39,312
$
47,088
Interest-bearing deposits
27,045
77,378
197,769
275,920
Federal funds sold
838
910
2,793
829
Total cash and cash equivalents
63,329
111,542
239,874
323,837
Investment securities:
Available for sale, at fair value
1,491,707
1,500,491
1,320,393
973,457
Non-marketable equity securities
4,042
4,042
2,890
2,890
Loans held for sale
6,672
8,293
14,152
26,648
Loans:
Loans held for investment
1,873,685
1,796,961
1,695,496
1,661,634
Allowance for credit losses
(34,958
)
(41,013
)
(41,236
)
(42,683
)
Total loans held for investment,
net
1,838,727
1,755,948
1,654,260
1,618,951
Premises and equipment, net
34,821
35,625
36,060
37,709
Goodwill
25,673
25,673
25,673
25,673
Bank-owned life insurance
43,234
42,978
42,720
27,330
Deferred income tax assets
11,787
16,814
7,389
8,586
Accrued interest receivable
9,537
10,454
11,336
11,682
Other intangibles
4,831
4,389
4,451
4,311
Other real estate owned
-
-
-
-
Other assets
6,445
5,549
7,030
4,571
Total assets
$
3,540,805
$
3,521,798
$
3,366,228
$
3,065,645
LIABILITIES AND SHAREHOLDERS’
EQUITY
Deposits:
Non-interest bearing deposits
$
1,145,009
$
1,104,995
$
1,039,844
$
985,455
Interest-bearing deposits
2,011,698
2,053,991
1,876,464
1,627,884
Total deposits
3,156,707
3,158,986
2,916,308
2,613,339
Short-term borrowings
-
-
64,554
83,490
Accrued interest payable
325
339
616
408
Other liabilities
13,142
12,602
13,612
18,278
Total liabilities
3,170,174
3,171,927
2,995,090
2,715,515
Shareholders’ equity:
Preferred shares, $0.01 par value
-
-
-
-
Common shares, $0.01 par value
189
189
188
188
Additional paid-in capital
88,209
87,843
87,574
86,721
Retained earnings
285,633
275,765
269,157
252,032
Accumulated other comprehensive
income/(loss)
(3,400
)
(13,926
)
14,219
11,189
Total shareholders’ equity
370,631
349,871
371,138
350,130
Total liabilities and shareholders’
equity
$
3,540,805
$
3,521,798
$
3,366,228
$
3,065,645
Common shares outstanding
18,880,610
18,873,921
18,828,522
18,793,217
ALTABANCORP™
SUMMARY FINANCIAL
INFORMATION
June 30,
March 31,
December 31,
June 30,
(Dollars in thousands, except share
amounts)
2021
2021
2020
2020
Selected Balance Sheet
Information:
Book value per share
$
19.63
$
18.54
$
19.71
$
18.63
Tangible book value per share
$
18.01
$
16.94
$
18.11
$
17.04
Non-performing loans to total loans
0.39
%
0.42
%
0.54
%
0.39
%
Non-performing assets to total assets
0.20
%
0.21
%
0.27
%
0.21
%
Allowance for credit losses to loans held
for investment
1.87
%
2.28
%
2.43
%
2.57
%
Loans to deposits
58.46
%
55.85
%
57.21
%
62.97
%
Asset Quality Data:
Non-performing loans
$
7,232
$
7,332
$
9,064
$
6,388
Non-performing assets
$
7,232
$
7,332
$
9,064
$
6,388
Capital Ratios:
Tier 1 leverage capital (1)
9.84
%
10.06
%
10.47
%
11.68
%
Total risk-based capital (1)
18.17
%
18.41
%
19.17
%
19.20
%
Average equity to average assets
10.18
%
10.94
%
11.15
%
12.57
%
Tangible common equity to tangible assets
(2)
9.69
%
9.16
%
10.27
%
10.55
%
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2021
2021
2020
2021
2020
Selected Financial Information:
Basic earnings per share
$
0.67
$
0.50
$
0.55
$
1.17
$
1.12
Diluted earnings per share
$
0.67
$
0.50
$
0.55
$
1.16
$
1.11
Net interest margin (3)
2.97
%
2.91
%
3.96
%
2.94
%
4.35
%
Efficiency ratio
61.64
%
57.09
%
51.01
%
59.43
%
51.60
%
Non-interest income to average assets
0.60
%
0.64
%
0.90
%
0.62
%
0.77
%
Non-interest expense to average assets
2.13
%
1.98
%
2.39
%
2.06
%
2.54
%
Annualized return on average assets
1.44
%
1.13
%
1.52
%
1.29
%
1.65
%
Annualized return on average equity
14.12
%
10.30
%
12.06
%
12.20
%
12.55
%
Net (recoveries) / charge-offs
$
(326
)
$
223
$
670
$
(103
)
$
959
Annualized net (recoveries) / charge-offs
to average loans
-0.07
%
0.05
%
0.16
%
-0.01
%
0.11
%
(1)
Tier 1 leverage capital and Total
risk-based capital as of June 30, 2021 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
$30.5 million, $30.1 million, $30.1 million, and $30.0 million at
June 30, 2021, March 31, 2021, December 31, 2020, and June 30,
2020, respectively.
(3)
Net interest margin is defined as
annualized net interest income divided by average earning
assets.
ALTABANCORP™
SELECTED AVERAGE BALANCES AND
YIELDS
Three Months Ended
June 30, 2021
June 30, 2020
(Dollars in thousands, except
footnotes)
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
ASSETS
Interest-earning deposits in other banks
and federal funds sold
$
45,977
$
10
0.09
%
$
228,032
$
52
0.09
%
Securities: (1)
Taxable securities
1,491,313
3,988
1.07
%
645,720
3,452
2.15
%
Non-taxable securities (2)
32,504
169
2.08
%
45,670
229
2.02
%
Total securities
1,523,817
4,157
1.09
%
691,390
3,681
2.14
%
Loans (3)
Real estate term
1,075,930
12,915
4.81
%
945,680
13,165
5.60
%
Construction and land development
268,706
4,079
6.09
%
257,561
4,157
6.49
%
Commercial and industrial
232,431
2,944
5.08
%
303,809
3,885
5.14
%
Residential and home equity
259,546
2,479
3.83
%
175,837
2,235
5.11
%
Consumer and other
9,287
156
6.73
%
11,306
207
7.38
%
Total loans
1,845,900
22,573
4.90
%
1,694,193
23,649
5.61
%
Non-marketable equity securities
4,653
23
2.01
%
2,890
20
2.79
%
Total interest-earning assets
3,420,347
26,763
3.14
%
2,616,505
27,402
4.21
%
Allowance for credit losses
(41,061
)
(42,213
)
Non-interest earning assets
164,602
167,969
Total average assets
$
3,543,888
$
2,742,261
LIABILITIES AND SHAREHOLDERS’
EQUITY
Interest-bearing deposits:
Demand and savings accounts
$
1,224,887
602
0.20
%
$
911,270
539
0.24
%
Money market accounts
662,375
478
0.29
%
416,458
505
0.49
%
Certificates of deposit
152,193
375
0.99
%
173,383
569
1.32
%
Total interest-bearing deposits
2,039,455
1,455
0.29
%
1,501,111
1,613
0.43
%
Short-term borrowings
15,257
11
0.28
%
24,410
-
0.00
%
Total interest-bearing
liabilities
2,054,712
1,466
0.29
%
1,525,521
1,613
0.43
%
Non-interest bearing deposits
1,117,396
858,566
Total funding
3,172,108
1,466
0.19
%
2,384,087
1,613
0.27
%
Other non-interest bearing liabilities
11,040
13,490
Shareholders’ equity
360,740
344,684
Total average liabilities and
shareholders’ equity
$
3,543,888
$
2,742,261
Net interest income
$
25,297
$
25,789
Interest rate spread
2.85
%
3.79
%
Net interest margin
2.97
%
3.96
%
(1)
Excludes average unrealized
losses of $9.7 million and unrealized gains of $11.5 million for
the three months ended June 30, 2021 and 2020, respectively.
(2)
Does not include tax effect on
tax-exempt investment security income of $56,000 and $76,000 for
the three months ended June 30, 2021 and 2020, respectively.
(3)
Loan interest income includes
loan fees of $1.7 million for both three months ended June 30, 2021
and 2020, respectively.
ALTABANCORP™
SELECTED AVERAGE BALANCES AND
YIELDS
Six Months Ended
June 30, 2021
June 30, 2020
(Dollars in thousands, except
footnotes)
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
ASSETS
Interest-earning deposits in other banks
and federal funds sold
$
103,916
$
37
0.07
%
$
165,566
$
368
0.45
%
Securities: (1)
Taxable securities
1,419,696
6,091
0.87
%
547,457
6,320
2.32
%
Non-taxable securities (2)
33,592
346
2.08
%
48,093
482
2.02
%
Total securities
1,453,288
6,437
0.89
%
595,550
6,802
2.30
%
Loans (3)
Real estate term
1,050,352
25,675
4.93
%
940,716
26,632
5.69
%
Construction and land development
258,296
7,899
6.17
%
267,641
9,181
6.90
%
Commercial and industrial
235,819
6,798
5.81
%
291,543
8,791
6.06
%
Residential and home equity
238,557
4,686
3.96
%
173,302
4,521
5.25
%
Consumer and other
9,225
329
7.21
%
13,208
449
6.84
%
Total loans
1,792,249
45,387
5.11
%
1,686,410
49,574
5.91
%
Non-marketable equity securities
3,839
46
2.39
%
2,764
42
3.04
%
Total interest-earning assets
3,353,292
51,907
3.12
%
2,450,290
56,786
4.66
%
Allowance for credit losses
(41,233
)
(42,174
)
Non-interest earning assets
157,973
163,773
Total average assets
$
3,470,032
$
2,571,889
LIABILITIES AND SHAREHOLDERS’
EQUITY
Interest-bearing deposits:
Demand and savings accounts
$
1,177,881
1,171
0.20
%
$
871,676
1,318
0.30
%
Money market accounts
665,217
1,002
0.30
%
384,289
1,316
0.69
%
Certificates of deposit
156,581
802
1.03
%
171,525
1,142
1.34
%
Total interest-bearing deposits
1,999,679
2,975
0.30
%
1,427,490
3,776
0.53
%
Short-term borrowings
20,564
37
0.36
%
12,205
-
0.00
%
Total interest-bearing
liabilities
2,020,243
3,012
0.30
%
1,439,695
3,776
0.53
%
Non-interest bearing deposits
1,073,010
779,173
Total funding
3,093,253
3,012
0.20
%
2,218,868
3,776
0.34
%
Other non-interest bearing liabilities
10,716
14,684
Shareholders’ equity
366,063
338,337
Total average liabilities and
shareholders’ equity
$
3,470,032
$
2,571,889
Net interest income
$
48,895
$
53,010
Interest rate spread
2.82
%
4.13
%
Net interest margin
2.94
%
4.35
%
(1)
Excludes average unrealized gains
of $1.6 million and $7.3 million for the six months ended June 30,
2021 and 2020, respectively.
(2)
Does not include tax effect on
tax-exempt investment security income of $115,000 and $161,000 for
the six months ended June 30, 2021 and 2020, respectively.
(3)
Loan interest income includes
loan fees of $4.0 million and $3.2 million for the six months ended
June 30, 2021 and 2020, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210728006088/en/
Investor Relations Contact
Mark K. Olson Executive Vice President and Chief Financial
Officer Altabancorp™ 1 East Main Street American Fork UT 84003
investorrelations@altabancorp.com Phone: 801-642-3998
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