2019 Journal of Community Bank Case Studies

Utah Valley University

THIRD PLACE:

B. Loan Portfolio Composition People’s Intermountain Bank is heavily concentrated in commercial real estate loans.

to 2018 was primarily due to the acquisition and merger in 2017 coupled with the tax reform. People’s Intermountain Bank went public in 2015 and has had a constant increase year- over-year in EPS. In 2015 the core EPS was $1.17. From year end 2017 to year end 2018 EPS increased from $1.53 to $2.14, an increase of 40% (FFIEC). Much of the drastic increase from 2017 to 2018 can also be attributed to its merger and acquisition at the end of 2017. Interest income declined from 2008 to 2014 due to the great recession. Since 2014, the interest income has steadily increased from 4.37% to 5.33% an overall increase of 22%. Along with the interest income rising, net interest margin widened 55 bps to 5.29% year-over-year primarily due to the gain of more loans than deposits from its merger and acquisition (People’s Utah Bancorp Reports).

Annual core EPS

$2.35

$2.14

$2.15

$1.95

$1.75

CAGR 19%

$1.53

$1.55

$1.35

$1.30

$1.17

$1.15

$0.98

$0.95

$0.89

$0.75

2013

2014

2015

2016

2017

2018

Year

ROA Peer Comparison

Yields & NIM

COF

Net Interest Margin

Cost of Funds

Yield on Earning Assets

6.00%

1.00%

5.75%

0.90%

5.50%

0.80%

5.25%

0.70%

5.00%

0.60%

4.75%

0.50%

4.50%

0.40%

4.25%

0.30%

4.00%

0.20%

Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18

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