Summarized

This was a year of growth and record earnings for People’s Utah Bancorp and Bank of American Fork. Significant reasons for the success were the favorable economic banking climate in Utah and the loan portfolio positioning of the Bank totake advantage of the interest rate hikes that occurred during the year. Dedicated professional employees continued to focus on each individual customer, one at a time.

 

BANK ACCOMPLISHMENTS

The Bank was the largest community bank in Utah during 2006 as measured by assets. The Bank continued to receive favorable treatment from the press and industry groups.

ICBA Independent Banker Magazine rated the Bank as one of the top 20 community banks in the U.S. in its asset class (between $500 million and $1 billion) based on the return on average assets. In 2005, the Bank was rated as number 20 and moved to number 18 in 2006.  

In May of 2006, Utah Business Magazine recognized the Bank with its Trailblazer Award as one of ten enduring companies that have built Utah. The Bank was showcased in both the magazine and at an awards ceremony focusing on the vision, purpose and values of the Bank.

In June of 2006, Dale Gunther, the Bank’s Vice-Chairman and former President and Chief Executive Officer, was recognized as the “Distinguished Banker of the Year” by the Utah Bankers Association.

The Bank continued its dedication to its vision and purpose by strengthening the communities which it serves. Contributions and projects are too numerous to list. Two notable projects illustrate the Bank’s commitment to the community:

The Bank donated funding for the Huntsman/Intermountain Health Care Cancer Center facility in American Fork.
 
Employees and customers donated nearly 3,000 stuffed bears to the Christmas Box House and the Family Support and Treatment Center. These two organizations use these stuffed animals in the treatment of abused children in Utah and Salt Lake Counties. Project Teddy Bear has received media attention for its service to the community.

THE FUTURE

The Bank faces increasing competition from local community banks and out-of-state credit unions and banks moving into the Bank’s market. The Bank’s new branch in Riverton opened in March of 2007, which expands the Bank’s presence in the southwest part of Salt Lake County. The Bank owns property in West Jordan to accommodate future expansion opportunities.

With the cooling in the Utah housing market, we anticipate low to moderate loan growth in the near term. The battle for deposits will continue as consumers have numerous options for their dollars. We have been successful in retaining our current associates and in attracting new associates in the tight Utah job market.

Our vision is to become the most distinguished provider of fi nancial services in Utah. We exist to strengthen individuals and communities by providing safe financial services with exceptional care. We care. We are safe and sound. Integrity is absolute. We are professional in every way. We believe the vision, purpose and values of the Bank, as articulated by generations of past management and employees have built the Bank to what it is today. We believe that continued adherence to these principles will be a fi rm foundation for the continued growth and profi tability of the Bank.

We look forward to continuing our quest to be the most distinguished provider of fi nancial services in Utah.