2019 Journal of Community Bank Case Studies

Utah Valley University

THIRD PLACE:

Asset Growth

$2,500,000

Acquisition and merger of Banner Bank and Town and Country Bank completed Oct-Nov. 2017.

$2,000,000

$1,500,000

Merged with Lewistown State Bank Oct 18, 2013

$1,000,000

$500,000

$0

2013

2014

2015

2017

2018

2016

Year

D. Planning and Capital Levels Len Williams, CEO of People’s Intermountain Bank, stated that the bank is active in seeking out acquisitions while growing organically. In the same interview, he said that they are very mindful of the effects that acquisitions have on the bank’s loan composition and capital levels. He stated, “Our compliance team has reviewed the changes in capital levels and loan composition that would accompany an acquisition before we express interest” (Williams).

Capital Leverage Ratio Peer Comparison

Peer Group

People’s Intermountain Bank

15.00%

14.00%

13.00%

12.00%

11.00%

10.00%

9.00%

8.00%

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

HVCRE guideline pertaining to HVCRE as a percentage of tier 1 capital (Olson). With excellent management and guidelines pertaining to specific categories of CRE (Hotels, assisted living, construction, etc.) the bank is comfortable being over the established guideline of 100%. For example, in 2018, they observed an over concentration geographically,

People’s Intermountain Bank has been aggressive with loans and compliant to regulations surrounding high volatility commercial real estate (HVCRE) loans. However, the bank is slightly above the 100%

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