People’s Utah Bancorp Reports First Quarter Results and Announces Increased Quarterly Dividend Payment

Company Release - 4/25/2018 4:42 PM ET

 First Quarter Highlights

  • Total deposits grew $338 million, or 22.99%, to $1.81 billion year-over-year
  • Loans held for investment grew $536 million, or 46.48%, to $1.69 billion year-over-year
  • Net interest margin widened 67 bps to 5.22% year-over-year
  • Earnings per diluted share increased 33.33% to $0.48 for the first quarter of 2018
  • Return on average assets improved to 1.70% for the first quarter of 2018
  • Return on average equity improved to 13.96% for the first quarter of 2018

AMERICAN FORK, Utah, April 25, 2018 (GLOBE NEWSWIRE) -- People’s Utah Bancorp (the “Company” or “PUB”) (Nasdaq:PUB) reported net income of $9.0 million for the first quarter of 2018 compared with $0.6 million for the fourth quarter of 2017, and $6.5 million for the first quarter of 2017.  Diluted earnings per common share were $0.48 for the first quarter of 2018 compared with $0.03 for the fourth quarter of 2017, and $0.36 for the first quarter of 2017. 

Net income for 2017 was impacted by two large, non-recurring items.  The Company re-measured its net deferred income tax assets at the end of December and recorded a one-time additional income tax expense of $4.7 million related to the write-down of deferred income tax assets for tax benefits that the Company does not expect to realize due to the reduction of the federal corporate tax rate.  In addition, the Company recorded $4.8 million in non-recurring costs associated with the acquisition of the Utah Banner Bank branches and the merger of Town & Country Bank in 2017. 

The Company has excluded costs related to the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank incurred in both 2017 and 2018; higher income tax expense related to the one-time write-down of its deferred income tax assets recorded in 2017; and the loss on investment securities sold in 2017 to raise liquidity to fund the purchase of net assets from the acquisition of the Utah branches of Banner Bank recorded in the third quarter of 2017 to derive non-GAAP financial information related to the Company’s core operations.  The Company believes this non-GAAP(NG) financial information is useful in understanding the Company’s core financial performance.                      

Net income from core operations was $9.3 million, or $0.49 per diluted common share, for the first quarter of 2018 compared with $8.1 million, or $0.43 per diluted common share, for the fourth quarter of 2017 and $6.5 million, or $0.36 per diluted common share, for the first quarter of 2017(NG)

Return on average assets for the first quarter of 2018 was 1.70% compared with 0.12% for the fourth quarter of 2017, and 1.59% for the first quarter of 2017.  Return on average assets from core operations for the first quarter 2018 was 1.75% compared with 1.58% for the fourth quarter of 2017, and 1.59% for the first quarter of 2017(NG)

Return on average equity for the first quarter of 2018 was 13.96% compared with 0.92% for the fourth quarter of 2017, and 11.39% for the first quarter of 2017.  Return on average equity from core operations for the first quarter 2018 was 14.37% compared with 12.59% for the fourth quarter of 2017, and 11.39% for the first quarter of 2017(NG)

The Board of Directors declared an increased quarterly dividend payment of $0.10 per common share. The dividend will be payable on May 14, 2018 to shareholders of record on May 7, 2018. The dividend payout ratio for earnings for the quarter ended March 31, 2018 was 20.74%.  This continues the over 50-year trend of paying dividends by the Company.

“2017 was a transformational year for us as we successfully completed the acquisition, conversion, and integration of both the Utah branch locations from Banner Bank and Town & Country Bank.  These two transactions expanded our footprint throughout Utah and southern Idaho,” said Len Williams, President and Chief Executive Officer.  “With these two transactions behind us, we believe that we can continue to grow our business organically and diversify our loan portfolio.  We are excited about our prospects to expand our commercial and industrial lending to small and medium sized businesses, particularly in the Salt Lake City metro markets.”

Net Interest Income and Margin

Net interest income grew 45.97%, or $8.2 million, to $26.0 million for the first quarter of 2018 compared with $17.8 million for the first quarter of 2017.  The increase is primarily the result of average interest earning assets growing 27.24%, or $432 million, and yields on interest earning assets increasing 77 basis points for the same comparable periods to 5.52% for the first quarter of 2018. Higher yields on interest earning assets was primarily the result of yields on loans increasing 28 basis points to 6.30% for the same comparable periods and the percentage of loans to total interest earning assets increasing to 82.42% for the first quarter of 2018 compared with 71.64% for the first quarter of 2017. 

Total cost of interest bearing liabilities increased 18 basis points to 0.49% for the first quarter of 2018 compared with 0.31% for the first quarter of 2017, and is primarily the result of a $97.3 million increase in average short-term borrowing at a borrowing rate of 1.73% for the first quarter of 2018.  The increase in short-term borrowings of $39.0 million in the first quarter of 2018 is primarily the result of seasonal deposit outflows and approximately $10.3 million in deposit run-off from the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank.  The cost of interest bearing deposits increased 7 basis points to 0.38% for the first quarter of 2018 compared with the same period a year earlier.

Net interest margin increased 67 basis points to 5.22% for the first quarter of 2018 compared with the same period a year earlier.  Acquisition accounting adjustments, including the accretion of loan discounts, and amortization of certificate of deposits premium, added 24 basis points to the net interest margin in the first quarter of 2018.

Provision for Loan Losses

Provision for loan losses was $2.1 million for the first quarter of 2018 compared with $0.2 million for the first quarter of 2017. The increase in provision for loan losses is due primarily to growth in loans held for investment and a $1.1 million increase in specific reserves on classified loans.  The Company incurred net recoveries of $0.4 million in the first quarter of 2018 compared with net charge-offs of $0.3 million in the first quarter of 2017.

Noninterest Income

Noninterest income was $4.3 million for the first quarter of 2018 compared with $4.1 million the same period a year ago.   The increase was primarily due to an increase in card processing fees and service charges on deposit accounts, offset by lower mortgage banking income.

Noninterest Expense

Noninterest expense was $16.7 million for the first quarter of 2018 compared with $12.4 million for the first quarter of 2017.  Noninterest expense for the first quarter of 2018 included $0.3 million in non-recurring costs associated with the acquisition of the Utah branches of Banner Bank and merger of Town & Country Bank.  In addition, noninterest expense for the first quarter of 2018 increased as a result of $2.5 million of higher salaries and employee benefits primarily from the addition of employees retained from the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank, and $0.4 million of higher occupancy, equipment and depreciation costs associated with the net increase of five branches from these transactions.

The Company’s efficiency ratio was 55.02% for the first quarter of 2018 compared with 56.81% for the first quarter of 2017.  The Company’s efficiency ratio from core operations was 53.86% for the first quarter of 2018 compared with 56.81% for the first quarter of 2017(NG).

Income Tax Provision

Income tax expense was $2.6 million for the first quarter of 2018 compared with $2.7 million for the first quarter of 2017.  The effective tax rate for the first quarter of 2018 was 22.1% compared with 29.6% for the same period a year earlier.  The lower effective tax rate in 2018 compared with 2017 is the result of the reduction in the federal corporate tax rate to a flat rate of 21%, the reduction of the Utah state corporate tax rate to 4.95% as well as tax benefits related to tax-deductible stock compensation expense.

Loans and Credit Quality

Loans held for investment increased $536 million, or 46.48%, to $1.69 billion at March 31, 2018 compared with $1.15 billion at March 31, 2017.  Average loans grew $527 million, or 46.38%, to $1.66 billion for the quarter ended March 31, 2018 compared with $1.14 billion for the quarter ended March 31, 2017.  The increase in loans held for investment was both the result of organic growth as well as loans purchased with the acquisition of the Utah branches of Banner Bank and the merger of Town & Country Bank.

Non-performing assets increased to $7.4 million at March 31, 2018 compared with $5.9 million at March 31, 2017.  Non-performing assets to total assets were 0.34% at March 31, 2018 compared with 0.35% at March 31, 2017.  The allowance for loan losses to loans held for investment was 1.23% at March 31, 2018 compared with 1.44% at March 31, 2017.  In accordance with acquisition accounting, loans acquired from the Utah branches of Banner Bank and Town & Country Bank were recorded at their estimated fair value, which resulted in a net discount to the loans’ contractual amounts, a portion of which reflects a discount for possible credit losses. Credit discounts are included in the determination of fair value, and as a result, no allowance for loan and lease losses is recorded for acquired loans at the acquisition date.  The discount recorded on the acquired loans is not reflected in the allowance for loan losses or related allowance coverage ratios.  Remaining discounts on acquired loans was $10.5 million at March 31, 2018.

Deposits and Liabilities

Total deposits increased $338 million, or 22.99%, to $1.81 billion at March 31, 2018 compared with $1.47 billion at March 31, 2017.  The increase in total deposits was the result of both organic growth as well as the assumption of deposits from the Utah branches of Banner Bank and Town & Country Bank. Non-interest-bearing deposits were 36.78% of total deposits as of March 31, 2018 compared with 31.52% as of March 31, 2017. 

Shareholders’ Equity

Shareholders’ equity increased by $29.6 million to $264 million at March 31, 2018 compared with $234 million at March 31, 2017. The increase resulted primarily from the exchange of Town & Country shares for 466,546 PUB common shares, and from net income earned during the intervening periods, net of cash dividends paid to shareholders.

Conference Call and Webcast

Management will conduct a live conference call and webcast for investors, analysts and the public relating to the Company's results for the first quarter of 2018 at 11:00 a.m. Eastern time on Thursday, April 26, 2018. The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 888-317-6003 (international calls 412-317-6061) and the participant entry number is 0466785. Please dial in 10-15 minutes early so the name and company information can be collected prior to the start of the conference.  To participate in the webcast, log on to:

http://services.choruscall.com/links/pub180426.html.

If you are unable to participate during the live webcast, the call will be archived on our website www.peoplesutah.com or at the same URL above until May 26, 2018. Forward-looking and other material information may be discussed on this conference call.

Forward-Looking Statements

Statements in this release that are based on information other than historical data or that express the Company’s expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date.

Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include: (i) market and economic conditions; (ii) capital sufficiency; (iii) operational, liquidity, interest rate and credit risks; (iv) deterioration of asset quality; (v) achieving loan and deposit growth; (vi) increased competition; (vii) adequacy of reserves; (viii) investments in new branches and new business opportunities; and (ix) changes in the regulatory or legal environment; as well as other factors discussed in the section titled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission.

The foregoing factors should not be construed as exhaustive. The Company does not intend, or undertake any obligation to publicly update these forward-looking statements, except as required by law.

About People’s Utah Bancorp

People’s Utah Bancorp is the holding company for People’s Intermountain Bank.  People’s Intermountain Bank is a full-service community bank providing loans, deposit and cash management services to individuals and businesses. The Company offers its clients direct access to decision makers, unparalleled responsiveness, seasoned relationship managers, and technology solutions. People’s Intermountain Bank has 26 locations in three banking divisions, Bank of American Fork, Lewiston State Bank, and People’s Town & Country Bank; a leasing division, GrowthFunding Equipment Finance; and a mortgage division, People’s Intermountain Bank Mortgage. The Company has been serving communities in Utah and southern Idaho for more than 100 years. More information about PUB is available at www.peoplesutah.com.

Investor Relations Contact:

Mark K. Olson
Executive Vice President and Chief Financial Officer
1 East Main Street
American Fork UT 84003
investorrelations@peoplesutah.com 
Phone: 801-642-3998

    
PEOPLE’S UTAH BANCORP
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 
    
   Three Months Ended 
(Dollars in thousands, except share March 31,  December 31,  March 31, 
 and per share data) 2018  2017  2017 
Interest income            
Interest and fees on loans $25,810  $23,332  $16,853 
Interest and dividends on investments  1,656   1,688   1,705 
Total interest income  27,466   25,020   18,558 
Interest expense  1,495   1,073   766 
Net interest income  25,971   23,947   17,792 
Provision for loan losses  2,050   750   200 
Net interest income after provision for loan losses  23,921   23,197   17,592 
Non-interest income            
Service charges on deposit accounts  673   695   536 
Card processing  1,326   1,377   1,124 
Mortgage banking  1,638   1,911   1,979 
Net loss on sale of investment securities  -   -   (13)
Other operating  657   543   486 
Total non-interest income  4,294   4,526   4,112 
Non-interest expense            
Salaries and employee benefits  10,423   9,850   7,967 
Occupancy, equipment and depreciation  1,543   1,458   1,117 
Data processing  870   812   675 
FDIC premiums  329   181   126 
Card processing  603   578   529 
Marketing and advertising  446   427   262 
Acquisition-related costs  349   4,124   - 
Other  2,088   2,244   1,767 
Total non-interest expense  16,651   19,674   12,443 
Income before income tax expense  11,564   8,049   9,261 
Income tax expense  2,560   7,456   2,740 
Net income $9,004  $593  $6,521 
             
Earnings per common share:            
Basic $0.48  $0.03  $0.36 
Diluted $0.48  $0.03  $0.36 
             
Weighted average common shares outstanding:            
Basic  18,598,436   18,276,788   17,884,026 
Diluted  18,937,637   18,722,132   18,316,331 
             
             

PEOPLE’S UTAH BANCORP
UNAUDITED CONSOLIDATED BALANCE SHEETS

  March 31,  December 31,  March 31, 
(Dollars in thousands, except share data) 2018  2017  2017 
ASSETS            
Cash and due from banks $32,267  $36,235  $25,773 
Interest bearing deposits  9,268   13,158   62,171 
Federal funds sold  338   1,634   2,884 
Total cash and cash equivalents  41,873   51,027   90,828 
Investment securities:            
Available for sale, at fair value  249,534   263,056   334,249 
Held to maturity, at historical cost  73,888   74,654   78,041 
Total investment securities  323,422   337,710   412,290 
Non-marketable equity securities  5,711   3,706   1,959 
Loans held for sale  10,618   10,871   13,053 
Loans:            
Loans held for investment  1,687,530   1,627,444   1,152,030 
Allowance for loan losses  (20,731)  (18,303)  (16,644)
Total loans held for investment, net  1,666,799   1,609,141   1,135,386 
Premises and equipment, net  29,734   30,399   22,701 
Goodwill  25,344   26,008   - 
Bank-owned life insurance  25,964   23,566   19,842 
Deferred income tax assets  10,005   8,827   9,731 
Accrued interest receivable  7,616   7,594   5,779 
Other intangibles  3,744   3,854   533 
Other real estate owned  -   994   245 
Other assets  12,608   9,832   5,301 
Total assets $2,163,438  $2,123,529  $1,717,648 
             
LIABILITIES AND SHAREHOLDERS’ EQUITY            
Deposits:            
Non-interest bearing deposits $664,438  $641,124  $462,886 
Interest bearing deposits  1,141,887   1,173,508   1,005,779 
Total deposits  1,806,325   1,814,632   1,468,665 
Short-term borrowings  79,000   40,000   3,372 
Accrued interest payable  354   353   279 
Other liabilities  13,960   11,126   11,087 
Total liabilities  1,899,639   1,866,111   1,483,403 
Commitments and contingencies            
Shareholders’ equity:            
Preferred shares, $0.01 par value  -   -   - 
Common shares, $0.01 par value  187   185   179 
Additional paid-in capital  85,430   84,532   69,256 
Retained earnings  182,136   174,804   165,782 
Accumulated other comprehensive income  (3,954)  (2,103)  (972)
Total shareholders’ equity  263,799   257,418   234,245 
Total liabilities and shareholders’ equity $2,163,438  $2,123,529  $1,717,648 
             
Common shares outstanding  18,674,232   18,511,931   17,925,284 
             
             

PEOPLE’S UTAH BANCORP
SUMMARY FINANCIAL INFORMATION

    
  March 31,  December 31,  March 31, 
(Dollars in thousands, except share data) 2018  2017  2017 
Selected Balance Sheet Information:            
Book value per share $14.13  $13.91  $13.07 
Tangible book value per share $12.57  $12.29  $13.04 
Non-performing assets to total assets  0.34%  0.18%  0.35%
Allowance for loan losses to loans held for investment  1.23%  1.12%  1.44%
Loans to Deposits  92.86%  89.27%  78.20%
             
Asset Quality Data:            
Non-performing loans $7,398  $2,899  $5,703 
Non-performing assets  7,398   3,893   5,948 
             
Capital Ratios:            
Tier 1 leverage capital (1)  11.26%  11.46%  14.10%
Total risk-based capital (1)  14.71%  14.67%  20.11%
Average equity to average assets  12.20%  12.56%  13.93%
Tangible common equity to tangible assets (3)  11.00%  10.87%  13.61%
             


  Three Months Ended 
  March 31,  December 31,  March 31, 
  2018  2017  2017 
Selected Financial Information:            
Basic earnings per share $0.48  $0.03  $0.36 
Diluted earnings per share $0.48  $0.03  $0.36 
Net interest margin (2)  5.22%  4.95%  4.55%
Efficiency ratio  55.02%  69.10%  56.81%
Non-interest income to average assets  0.81%  0.88%  1.00%
Non-interest expense to average assets  3.15%  3.83%  3.03%
Return on average assets  1.70%  0.12%  1.59%
Return on average equity  13.96%  0.92%  11.39%
Net charge-offs / (recoveries)  (378)  56   271 
Annualized net charge-offs / (recoveries) to average loans  -0.09%  0.01%  0.10%
             
Average Balances:            
Average loans $1,662,515  $1,543,261  $1,135,689 
Average earning assets  2,017,090   1,920,063   1,585,312 
Average total assets  2,143,556   2,035,854   1,667,071 
Average shareholders’ equity  261,608   255,679   232,269 
             

(1)  Tier 1 leverage capital and Total risk-based capital as of March 31, 2018 are estimates.
(2)  Net interest margin is defined as net interest income divided by average earning assets.
(3)  Represents the sum of total shareholders’ equity less intangible assets all divided by the sum of total assets less intangible assets. Intangible assets were $29,088,000, $29,862,000 and $533,000 at March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

    
PEOPLE’S UTAH BANCORP
SELECTED AVERAGE BALANCES AND YIELDS
    
   Three Months Ended 
  March 31, 2018  March 31, 2017 
      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 $13,458  $45   1.36% $40,849  $79   0.79%
Securities: (1)                        
Taxable securities  252,491   1,214   1.95%  314,779   1,201   1.55%
Non-taxable securities (2)  82,518   382   1.88%  92,164   422   1.86%
Total securities  335,009   1,596   1.93%  406,943   1,623   1.62%
Loans (3)                        
Real estate term  854,982   12,164   5.77%  587,854   8,009   5.52%
Construction and land development  366,739   6,875   7.60%  236,238   4,400   7.55%
Commercial and industrial  314,027   5,090   6.57%  210,563   3,216   6.19%
Residential and home equity  106,910   1,336   5.07%  83,206   974   4.75%
Consumer and other  19,857   345   7.05%  17,828   254   5.77%
Total loans  1,662,515   25,810   6.30%  1,135,689   16,853   6.02%
                         
Non-marketable equity securities  6,108   15   1.01%  1,831   3   0.76%
Total interest earning assets  2,017,090  $27,466   5.52%  1,585,312  $18,558   4.75%
Allowance for loan losses  (18,715)          (16,769)        
Non-interest earning assets  145,181           98,528         
Total average assets $2,143,556          $1,667,071         
LIABILITIES AND SHAREHOLDERS’ EQUITY                        
Interest bearing deposits:                        
Demand and savings accounts $718,242  $451   0.25% $659,484  $438   0.27%
Money market accounts  224,322   157   0.28%  174,456   105   0.24%
Certificates of deposit, $100,000 and over  199,549   459   0.93%  156,310   222   0.58%
Total interest bearing deposits  1,142,113   1,067   0.38%  990,250   765   0.31%
Short-term borrowings  100,555   428   1.73%  3,233   1   0.18%
Total interest bearing liabilities  1,242,668  $1,495   0.49%  993,483  $766   0.31%
Non-interest bearing deposits  628,869           431,360         
Total funding  1,871,537  $1,495   0.32%  1,424,843  $766   0.22%
Other non-interest bearing liabilities  10,411           9,959         
Shareholders’ equity  261,608           232,269         
Total average liabilities and shareholders’ equity $2,143,556          $1,667,071         
Net interest income     $25,971          $17,792     
Interest rate spread          5.03%          4.43%
Net interest margin          5.22%          4.55%
                         

(1)  Excludes average unrealized gains (losses) of $(4.2) million and $(1.7) for the three months ended March 31, 2018 and 2017, respectively.
(2)  Does not include tax effect on tax-exempt investment security income of $205,000 and $227,000 for the three months ended March 31, 2018 and 2017, respectively.
(3)  Loan interest income includes loan fees of $1.6 million and $1.5 million for the three months ended March 31, 2018 and 2017, respectively.  

  
PEOPLE’S UTAH BANCORP
NON-GAAP SELECTED FINANCIAL INFORMATION
  
(NG)Non-GAAP Financial Measures  
In addition to financial results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures.  Management has presented these non-GAAP financial measures because it believes that they provide useful and comparative information to assess trends in core operations and facilitate the comparison of our financial performance with the performance of our peers. 
  
(Dollars in thousands) Three Months Ended 
  March 31,  December 31,  March 31, 
Revenue from Core Operations 2018  2017  2017 
Net interest income (GAAP) $25,971  $23,947  $17,792 
Total non-interest income  4,294   4,526   4,112 
Total GAAP revenues  30,265   28,473   21,904 
Exclude net loss on sale of investment securities  -   -   - 
Revenue from core operations (non-GAAP) $30,265  $28,473  $21,904 
             
  Three Months Ended 
  March 31,  December 31,  March 31, 
Non-interest Income from Core Operations 2018  2017  2017 
Total non-interest income (GAAP) $4,294  $4,526  $4,112 
Exclude net loss on sale of investment securities  -   -   - 
Non-interest income from core operations (non-GAAP) $4,294  $4,526  $4,112 
             
  Three Months Ended 
  March 31,  December 31,  March 31, 
Non-interest Expense from Core Operations 2018  2017  2017 
Total non-interest expense (GAAP) $16,651  $19,674  $12,443 
Exclude acquisition-related costs  (349)  (4,124)  - 
Non-interest expense from core operations (non-GAAP) $16,302  $15,550  $12,443 
             
  Three Months Ended 
  March 31,  December 31,  March 31, 
Net Income from Core Operations 2018  2017  2017 
Net income (GAAP) $9,004  $593  $6,521 
Exclude net loss on sale of investment securities  -   -   - 
Exclude acquisition-related costs  349   4,124   - 
Exclude tax related benefit  (84)  (1,334)  - 
Write down of deferred income tax assets (DTA)  -   4,729   - 
Net income (non-GAAP) $9,269  $8,112  $6,521 
             


  
PEOPLE’S UTAH BANCORP
NON-GAAP SELECTED FINANCIAL INFORMATION
  
(NG)Non-GAAP Financial Measures  
In addition to financial results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures.  Management has presented these non-GAAP financial measures because it believes that they provide useful and comparative information to assess trends in core operations and facilitate the comparison of our financial performance with the performance of our peers. 
  
(Dollars in thousands) Three Months Ended 
  March 31,  December 31,  March 31, 
Acquisition Accounting Impact on Net Interest Margin 2018  2017  2017 
Net interest income (GAAP) $25,971  $23,947  $17,792 
Exclude discount accretion (premium amortization) on purchased loans  (1,167)  43   (10)
Exclude premium amortization on acquired certificates of deposit ("CD")  (35)  (23)  (69)
Net interest income before acquisition accounting impact (Non-GAAP) $24,769  $23,967  $17,713 
             
Average earning assets (GAAP) $2,017,090  $1,920,062  $1,585,312 
Exclude average net loan discount on acquired loans  11,924   3,501   866 
Average earning assets before acquired loan discount
  (Non-GAAP)
 $2,029,014  $1,923,563  $1,586,178 
             
Net interest margin ("NIM") (GAAP)  5.22%  4.95%  4.55%
Exclude impact on NIM from discount accretion  -0.23%  0.01%  -0.02%
Exclude impact on NIM from CD premium amortization  -0.01%  -0.01%  0.00%
Net interest margin before acquisition accounting
  adjustments (Non-GAAP)
  4.98%  4.95%  4.53%
             


    
(Dollars in thousands) Three Months Ended 
  March 31,  December 31,  March 31, 
Additional Non-GAAP Financial Information 2018  2017  2017 
             
Diluted earning per share (GAAP) $0.48  $0.03  $0.36 
Diluted earning per share (non-GAAP) $0.49  $0.43  $0.36 
             
Efficiency ratio (GAAP)  55.02%  69.10%  56.81%
Efficiency ratio (non-GAAP)  53.86%  54.61%  56.81%
             
Non-interest income to average assets (GAAP)  0.81%  0.88%  1.00%
Non-interest income to average assets (non-GAAP)  0.81%  0.88%  1.00%
             
Non-interest expense to average assets (GAAP)  3.15%  3.83%  3.03%
Non-interest expense to average assets (non-GAAP)  3.08%  3.03%  3.03%
             
Return on average assets (GAAP)  1.70%  0.12%  1.59%
Return on average assets (non-GAAP)  1.75%  1.58%  1.59%
             
Return on average equity (GAAP)  13.96%  0.92%  11.39%
Return on average equity (non-GAAP)  14.37%  12.59%  11.39%

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Source: People's Utah Bancorp