Profile: People's Utah Bancorp (PUB.A)
11 Jun 2019
People's Utah Bancorp, incorporated on December 27, 1999, is a bank holding company. As of December 31, 2016, the Company had 18 retail banking locations, two residential mortgage offices and other support facilities operated through its banking subsidiary, People's Intermountain Bank (PIB or the Bank). The Company provides full-service retail banking in the state of Utah, including a range of banking and related services to locally owned businesses, professional firms, real-estate developers, residential home builders, high net-worth individuals, investors and other customers. It also provides a range of banking services and products to individuals. The Bank operates two divisions: Bank of American Fork (BAF), Lewiston State Bank (LSB) and GrowthFunding Equipment Finance. The Company provides banking services throughout its market area to real estate developers, contractors and small-to medium-sized businesses.
The Bank engages in general commercial banking business with branch offices located in their principal market area, Utah, Salt Lake, Davis, Washington and Cache counties in Utah, and Preston, Idaho, and in lending activities in other counties within the state of Utah. The Bank offers a range of short-term to long-term commercial, personal and mortgage loans. Commercial loans include both secured and unsecured loans for working capital (including inventory and accounts receivable); business expansion (including acquisition of real estate and improvements), and purchase of equipment and machinery. Consumer loans include secured and unsecured loans to finance automobiles, home improvements, education and personal investments. The Bank also offers mortgage loans secured by personal residences. The Bank offers a full range of deposit services typically available in most financial institutions, including checking accounts, savings accounts and time deposits. All deposit accounts are tailored to the Bank's principal market area at competitive rates. The Bank solicits these accounts from individuals, businesses, associations and organizations, and governmental entities.
The Company offers products and services, including mobile and Internet banking, automatic teller machines (ATMs), business cash management services, remote deposit capture, bill pay and other products. The Mobile and Internet Banking services allow both consumer and business customers to access detailed account information and manage their accounts, including online balance transfers and bill payment. These services enable its customers to conduct their banking business and monitor their bank accounts from remote locations at any time. The Company provides ATM services at all of its branches and offers ATM fee reimbursement to its customers, allowing them to use certain ATM networks nationwide without paying a per transaction fee. Its ATMs provide for cash withdrawals, balance transfers and inquiries, and check or cash deposits. The Company offers cash management systems to assist its business customers with their day-to-day funds management. This includes the ability to originate electronic payments and withdrawals, create wire transfers and request stop payments. Its ExpressDeposit and Merchant Check Capture products allow businesses to send their deposits electronically to the Bank. Its payment system allows its customers to pay bills electronically or by check. The Company offers other banking-related specialized products and services to its customers, such as cashier's checks, money orders, credit and debit cards, and safe deposit services.
The Company focuses on real estate lending. It also offers a range of short- and long-term commercial and industrial (C&I) and consumer lending products and services. It offers a range of loans, including real estate construction, land acquisition and development, commercial real estate, residential real estate, commercial, and to a lesser extent consumer based loans. Its lending activities are concentrated in over two categories: real estate and commercial/industrial. The Company is focused on commercial and residential real estate lending throughout a project's life-cycle, including acquisition and development loans, construction loans, and permanent, long-term mortgage financing. Its construction loan portfolio consists of single-family residential properties, multi-family properties and commercial projects. It also originates mortgages for commercial real estate properties. These loans are secured by commercial real estate, including office, retail, warehouse, industrial, and other non-residential properties and are made to the owners or occupants of such properties. Its residential mortgage loans consist of residential first and second mortgage loans, residential construction loans and home equity lines of credit and term loans secured by first and second mortgages on the residences of borrowers. Second mortgage loans and home equity lines of credit are used for home improvements, education and other personal expenditures. It makes mortgage loans with a range of terms, including fixed, floating and variable interest rates and a range of loan maturities. It provides loan servicing for Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (Freddie Mac) mortgage loans.
The Company's commercial lending portfolio consists of C&I loans for the financing of accounts receivable, inventory, property, plant and equipment. It also offers loans guaranteed by the Small Business Administration (SBA). Its lease portfolio consists of various types of equipment utilized by C&I customers, which are located throughout the United States. Its consumer loans consist of installment loans made to individuals for personal, family and household purposes. The specific types of consumer loans it makes include home equity loans, home improvement loans, automobile loans, debt consolidation loans and general consumer lending. It offers SBA loans that fall into two categories, loans originated under the SBA's 7(a) Program, or SBA 7(a) Loans, and loans originated under the SBA's 504 Program or SBA 504 Loans. As of December 31, 2016, the Company's total net loans were $1.12 billion.
The Company's investment securities consist of the United States Government agencies, municipal securities, mortgage-backed securities and corporate securities. Its portfolio of investment securities consists of both available-for-sale securities and held to maturity securities. Its main investing activities are the origination of real estate, commercial and consumer loans and purchases and sales of investment securities. As of December 31, 2016, its total investment securities were $409.1 million.
Sources of Funds
The Company's sources of funds for its loans and investments are demand, time, savings and other deposits, repayment of loans and borrowings. Its main sources of funds for use in its lending and investing activities consist of deposits; maturities and principal and interest payments on loans and securities, and other short-term borrowings. The Company provides an array of deposit products. It offers regular checking, rewards checking, savings and money market deposit accounts. It also offers fixed-rate, fixed maturity retail certificates of deposits (CDs) ranging in terms from 30 days to 6 years, individual retirement accounts and Jumbo CDs. It also offers Health Savings Accounts to its customers. The principal sources of deposits are small- and medium-sized businesses and individuals within its target market. The Bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC). As of December 31, 2016, its total deposits were $1.43 billion.
The Company competes with Zions Bancorp., Wells Fargo & Co., JPMorgan Chase & Co., KeyCorp, U.S Bancorp, Cache Valley Bancorp and BOU Bancorp.
People's Utah Bancorp
1 E Main St
AMERICAN FORK UT 84003-2323