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Edited Transcript of PUB earnings conference call or presentation 26-Apr-19 4:00pm GMT

Q1 2019 People's Utah Bancorp Earnings Call

AMERICAN FORK May 10, 2019 (Thomson StreetEvents) -- Edited Transcript of People's Utah Bancorp earnings conference call or presentation Friday, April 26, 2019 at 4:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Len E. Williams

People's Utah Bancorp - President, CEO & Director

* Mark K. Olson

People's Utah Bancorp - Executive VP & CFO

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Conference Call Participants

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* Andrew Brian Liesch

Sandler O'Neill + Partners, L.P., Research Division - MD

* Donald Allen Worthington

Raymond James & Associates, Inc., Research Division - Research Analyst

* Jeffrey Allen Rulis

D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst

* John Lawrence Rodis

FIG Partners, LLC, Research Division - Senior VP & Research Analyst

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Presentation

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Operator [1]

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Good morning, and good afternoon. Welcome to today's first quarter earnings conference call. (Operator Instructions) Please also note that today's event is being recorded.

And at this time, I'd like to turn the conference call over to Mark Olson, Executive Vice President and Chief Financial Officer. Sir, please go ahead.

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [2]

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Thanks, Jamie, and good morning. Thank you for joining us today to review our first quarter 2019 financial performance. Joining me this morning on the call is Len Williams, President and Chief Executive Officer for People's Utah Bancorp.

Our comments today will refer to the financial results included in our earnings announcement released last night. To obtain a copy of our earnings release, please visit our website at www.peoplesutah.com.

Our earnings release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and beyond the control of the company. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in or implied or projected for such forward-looking statements.

These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date they are made and we assume no duty to update such statements.

I will now turn the call over to Len Williams. Len?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [3]

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Thank you, Mark. Good morning, and thank you for joining us on the call today.

People's Utah Bancorp achieved another quarter of strong financial performance in the first quarter of 2019 even as we continued to position, strengthen, and fortify our balance sheet. We realized a return on equity of 14.4% for the first quarter after building our average equity to an average -- to average assets to 13.6% from 12.2% a year ago. We also increased our allowance for loan losses, from 1.2% a year ago to 1.6% at quarter end.

While the Utah economy continues to be strong, we believe that there are beginning to be signs of a general economic slowdown, including the flattening of the treasury yield curve and the Fed comments regarding holding interest rates steady near term. We believe it's prudent for us to ensure that we are prepared for an economic slowdown so that we're in position to take advantage of market conditions to expand our market share, either organically or through acquisitions.

We've also aggressively managed our loan concentration levels and have become more selective with type and size of construction projects we're willing to finance, given our perspective on the economy.

We have reduced our acquisition development construction portfolio to a total capital concentration ratio of 109% at the end of March compared to 149% a year ago. Excluding our ADC portfolio, the portfolio increased $63 million or 5% year-over-year, while our ADC portfolio declined $51 million or 13.9% over the same period.

It's been a long and wet winter season this year in Utah, and we expect to see a pickup in construction loan growth as it begins to warm up and dry out. We anticipate that our annualized growth rate for the year will be in the mid-single digits for 2019 as we continue to staff up our C&I business and our construction business grows during the summer months.

Looking at deposits. We achieved 5.4% or $95.2 million year-over-year average deposit growth, with total average deposits ending the first quarter 2019 at $1.87 billion. Our commercial treasury management team has been successful in focusing on raising commercial deposits, both from existing clients as well as the acquisition of new client relationships.

We recently signed a contract for a new treasury management platform that we believe will help us continue to grow our commercial deposit base and improve our fee income. We anticipate rolling out this new platform by the end of 2019. We achieved this growth despite experiencing greater competition for deposits and competitive deposit pricing pressures from our peers.

Our cost of deposits increased 24 basis points to 0.73% for the first quarter of 2019 as we matched our competitor deposit rates and enhanced our deposit pricing programs to reward and retain high-value client relationships. With a flat yield curve and the Fed pausing on rates, we expect that the rate of increase in our cost of funds will slow.

And as mentioned earlier, we continue to focus on diversifying our loan portfolio and particularly, growing our C&I portfolio. Currently, we operate 2 commercial banking centers that are located in Salt Lake County. We are now hiring for our previously announced third commercial banking center to be opened in Utah County and we expect this to be fully staffed this quarter.

We are continuing our efforts to automate and digitize our commercial loan origination process through the implementation of an online commercial lending application. We have begun the building phase of nCino, which is an industry leader in the commercial banking loan operating system space. The goal of this project is to ensure that we continue to provide the high touch and unparalleled responsiveness we currently offer as we grow and scale the operation. We expect to have this project complete early in the fourth quarter of 2019.

Looking at our asset quality metrics. Nonperforming assets were $4.7 million or 0.21% at March 31 compared with $7.4 million or 0.34% a year earlier. Our annualized net charge off for first quarter of 2019 was 0.21% compared with 0.29% for the fourth quarter of 2018 and 0.10% for all of 2018.

Allowance for loan losses increased $5.2 million or 25% at March 31, 2019, compared with the same period a year ago. In addition to our allowance for loan losses, we have $8.3 million of discounts remaining on our acquired loan portfolio. The allowance for loan losses plus total non-accretable discounts to loans held for investments was 1.71% at March 31, 2019. We believe it is prudent for us to continue to build our overall allowance for credit losses given that we believe we are nearing the end of an overall credit cycle.

On the retail banking front, we mentioned on our last call our plan to build a new business-oriented branch in the fast-growing Pleasant Grove area, where a number of technology firms have recently built new corporate offices. The branch will focus predominantly on small to medium-sized commercial clients, and we expect to have that office opened this quarter. The manager has already been hired and is actively soliciting and booking new business accounts.

We're also rebuilding our Alpine branch with an expected completion date of sometime in the fourth quarter 2019. The Alpine branch is one of our oldest and largest branches, with $120 million in deposits.

We recently hired an outside marketing research firm to evaluate our overall brand strategy, as we completed 2 acquisition transactions and added another brand name to our organization. The research firm provided us with an enlightening information about our organization. The research indicated that our existing clients are extremely satisfied with their relationship with us and are loyal to our people and style of business. They believe that we provide excellent client service, deliver customized financial solution, are responsive to their needs, and are quick to complete financial transaction.

This confirmed our belief and direction. We also discovered that non-clients are not highly aware of us, or if they are aware, they believe we're too small to meet their banking needs, given our brand names. This use of multiple brand names is causing confusion both internally and externally and has for a period of time and diluting our brand awareness. As a result, we decided to simplify our branding strategy and come together in all respects as one unified community bank.

We've hired a new Marketing Director and are in the process of hiring a new outside marketing agency. We have begun the process of identifying a single name for our bank, a new logo, a more contemporary look, and have formally defined our brand promise to our clients. We expect to roll out our new single-brand strategy around the end of the year. We've had some ongoing expenses associated with this brand realignment for the past year, and expect them to current at the current -- or to continue at the current rate throughout the remainder of 2019.

We continue to actively evaluate potential acquisition opportunities both in Utah and states contiguous to Utah, particularly along the I-15 corridor. I'm also pleased to announce that the Board of Directors declared an increase in the quarterly dividend to $0.12 per common share. The dividend will be payable on May 13, 2019, to shareholders of record as of May 6, 2019.

I will now turn the call back over to Mark to discuss our financial performance. Mark?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [4]

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Thank you, Len. Net income was $10.5 million or $0.55 per diluted common share for the first quarter of 2019 compared with $10.7 million or $0.56 per diluted common share for the fourth quarter of 2018 and $9 million or $0.48 per diluted common share for the first quarter a year ago. As a result of strong financial performance, our return on average assets improved 14.7% to 1.95% for the first quarter of 2019 compared with 1.7% a year ago.

For the first quarter of 2019, net interest income grew 3.7% or $1 million to $26.9 million compared with $25.9 million for the same period a year earlier. The increase was primarily the result of average interest-earning assets growing 2.3% or $46.1 million and yield on interest-earning assets increasing 21 basis points to 5.73% for the same comparable periods. Higher yields on interest-earning assets were primarily the result of yields on loans increasing 24 basis points to 6.53% for the same comparable periods, offset by the percentage of loans to total interest-earning assets declining to 81.2% for the first quarter of 2019 compared with 82.4% for the first quarter of 2018.

For the first quarter of 2019, total cost of interest-bearing liabilities increased 24 basis points to 0.72% compared with the same period a year ago and is the result of cost of interest-bearing deposits increasing 34 basis points to 0.72% for the same comparable periods, while the short-term borrowings declined $90.7 million or 90.2% to $9.8 million, with the borrowing rate increasing 90 basis points to 2.63% for the first quarter of 2019 compared with the same period a year earlier. As a result, our net interest margins widened 7 basis points to 5.29% for the first quarter of 2019 compared to 5.22% in the same period a year earlier.

For the linked quarters, our net interest margin declined 12 basis points as our cost of interest-bearing liabilities increased 9 basis points and our yield on interest-earning assets declined 7 basis points. The declining yield on interest-earning assets is primarily the result of percentage of loans to total interest-earning assets declined 81.2% for the first quarter compared with 83% for the linked fourth quarter. The decline in average loans is primarily the result of our average ADC loan portfolio declining 11.8% for the first quarter to the linked fourth quarter. As Len mentioned, we expect our ADC loan portfolio to grow as we enter into the spring and summer months.

Acquisition accounting adjustments, including accretion of loan discounts and amortization of certificate of deposit premiums, added 11 basis points to our net interest margin for the first quarter 2019 compared with 14 basis points in the fourth quarter 2019 and 24 basis points in the first quarter a year earlier. The positive impact of acquisition accounting adjustments will continue to decline going forward.

For the first quarter of 2019, provision for loan losses was $1.6 million compared with $2.1 million for the same period a year earlier. The decrease in provision for loan losses in the first quarter of 2019 is primarily due to a decline in loans held for investment from the fourth quarter of 2018 to the first quarter of 2019 compared with an increase in loans held for investment for the same comparable periods a year earlier.

For the first quarter of 2019, the company incurred net charge-offs of $0.9 million compared with net recoveries of $0.4 million for the same period a year ago.

For the first quarter of 2019, noninterest income was $3.3 million compared with $3.7 million for the same period a year ago. The decrease was primarily due to $0.2 million decline in mortgage banking income resulting from lower loan originations for the same comparable periods and $0.1 million decline in card processing fees due primarily to conversion-related costs.

For the first quarter of 2019, noninterest expense was $14.9 million compared with $16.1 million for the same period a year earlier and is primarily the result of $0.5 million lower in salary and employee benefits, $0.3 million in lower acquisition-related costs incurred in 2018, and $0.3 million in lower marketing and advertising, and $0.2 million in lower FDIC premiums.

As Len mentioned, we've begun our rebranding initiative and we have discontinued many of our current marketing and advertising campaigns as we prepare to roll out our new brands later in the year. We anticipate higher marketing and advertising costs over the next several quarters, resulting from the rebrand.

For the first quarter of 2019, the company's effective -- pardon me, efficiency ratio was 49.3% compared with 54.1% for the same period a year ago. For the first quarter of 2019, income tax expense was $3.3 million compared with $2.6 million for the same period a year earlier. For the same quarter -- for the first quarter 2019, the effective tax rate was 23.8% compared with 22.1% in the same period a year ago.

I'll now turn the call back over to Len.

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [5]

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Thank you, Mark, appreciate it. We're pleased with our financial performance for the first quarter of 2019, particularly regarding our deposit momentum and expense management. We continue to focus on taking advantage of the outstanding economic prospects in the market we serve. We believe we can continue to grow our business organically, diversify our loan portfolio and expand our low-cost core deposit base.

We're passionate and enthusiastic about our prospects to expand our commercial and industrial lending to small and medium-sized businesses with our commercial banking centers and increased emphasis on growing our commercial deposits with the expansion of our treasury management services team and through improving the products and services we offer.

As I mentioned earlier, we continue to actively pursue potential acquisition opportunities throughout the Intermountain West, which we believe is a crucial component to our business strategy and shareholder value creation model going forward.

Thank you so much for joining us on the call today. At this point, I will now turn it back to Jamie to open the line for questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And our first question today comes from Jeff Rulis from D.A. Davidson.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [2]

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I guess the first question I had was on the expense base. You talk about this -- the marketing and brand efforts as well as some of the branch openings, and you've alluded to some of these expenses have been feathered into the run rate. But that's a lot of moving pieces. You're at $14.9 million base this quarter. Thoughts on the remainder of the year with a little more specifics about how that grows or some new inputs to think about?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [3]

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Yes. Jeff, I'll take the first part of it, and then turn some of the specific dollar amount back to Mark on the run rate. But this is a project -- a brand new project, it's a project we undertook a year ago. We had a lot of research and consulting fees involved with this throughout the past year, and they continue. Our attempt is to cover as much as that through reduced standard marketing expense and putting in this rebrand type of marketing expense. So it's really kind of a shift in the use of a lot of the funds that we've budgeted in.

Regarding the new branch location, it's in an existing facility that just requires some modest leasehold improvements to get it open, and we're doing it with existing staff. So again, that's something that's not going to show up in a big way in the numbers.

I'll turn it back to Mark for any further comment on that.

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [4]

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Yes. Sure. You bet. Marketing advertising, obviously, is lower than what our historical run rate has been, and we would expect that to be a little bit higher, actually, than our normal run rate. We'd anticipate marketing and advertising being around $1.5 million for the year. Something in that area. We don't know all the costs yet related to the rebranding, but that's probably a good, broad number that we expect there. Also, we will have some additional depreciation with the new service center, so our occupancy costs will go up a little bit.

Salary and employee benefits were down a bit. Part of that had to do with adjusting some accruals, but we also paid lower quarterly commissions to loan officers based on loan volumes. So as the volume increases, we would expect that our cost there would increase as well. So if you're looking at the numbers, I would expect them to be kind of in that $15 million, $15.5 million range for the next couple of quarters.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [5]

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Okay. That's $15 million to $15.5 million for the remainder of the year on a quarterly basis?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [6]

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Yes. Roughly. I mean, it could go higher as we finalize what all the rebranding costs are going to be.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [7]

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Yes. No, I appreciate it. And then, Mark, while I have you, the accretion benefit last quarter versus this quarter is 11 basis points?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [8]

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Yes. Yes. That's correct.

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Jeffrey Allen Rulis, D.A. Davidson & Co., Research Division - Senior VP & Senior Research Analyst [9]

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Got it. And then, on the credit quality side, just the charge-offs have been in the 20 to 30 basis points for the last several quarters. Where is that coming from? And is that a portion of, Len, kind of your comments on being cautious in this part of the cycle, but where are those charge-offs largely coming from?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [10]

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Yes. It's an area that we -- as you know, Jeff, has paid a lot of attention to forever. As we've got a new Chief Credit Officer on hand going through the portfolio, spending time in the nonperformings, and we've been a little more aggressive than we historically have been.

As a matter of fact, there was one this quarter that we charged the whole thing off, even before completing the recovery process which is now underway. So we do expect some return over time, on the charge-offs we had this quarter. That pipeline today looks pretty good going forward over the next period as far as continued charge-off. We're feeling pretty good about where we are.

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Operator [11]

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Our next question comes from Andrew Liesch from Sandler O'Neill.

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Andrew Brian Liesch, Sandler O'Neill + Partners, L.P., Research Division - MD [12]

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Nice job on the deposit growth. This treasury management group, looks like it's doing a really nice job here. What -- I'm just curious, what was the rate that these funds were added during the quarter?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [13]

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It's mixed, as you look at them. What we did with our treasury growth is we actually instituted new product for corporate investment with a little higher than market rate. It actually brought in close to $100 million in new business. Of that new business, we're also now reaping the benefits of operating accounts, which I think, over time, will reduce that cost. So it was a strategic move to bump it through what's normally a down quarter for us. We've got some momentum with that group and are pretty encouraged on the deposit side right now.

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Andrew Brian Liesch, Sandler O'Neill + Partners, L.P., Research Division - MD [14]

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Good. How is the pipeline for further inflows look from this team?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [15]

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It's looking pretty good, actually. Again, we have a pretty good pick up this past quarter. And I would expect -- I'm not -- I don't believe we'll be at the same level next quarter, but the pipeline is strong and we're really excited about what that team is doing and the value that they're adding to the program overall.

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Andrew Brian Liesch, Sandler O'Neill + Partners, L.P., Research Division - MD [16]

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Right. Certainly. And then, it sounds like overall, though you do with the Fed pausing the rate of the increasing cost of fund is going to slow. Will that still be the same case with -- with this group? With the deposits they bring in?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [17]

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Yes.

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Andrew Brian Liesch, Sandler O'Neill + Partners, L.P., Research Division - MD [18]

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Okay. And then, just on the yield side, you've mentioned typically have stronger commercial growth here in the spring and summer -- or I mean, I'm sorry, construction growth in the spring and summer months and those tend to be a little higher yielding so should we see the loan yields rise as well, even though the Fed may be in pause?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [19]

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We'll certainly get the benefit from the -- come from the construction side of things. But having said that, we're also extending the C&I business and that is a little bit lower-yielding loans as well. So I would expect -- as we've talked earlier, kind of north of 5% is probably where we're going to be overall.

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [20]

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Just to add a point, and I might even preempt some of the other questions that will be coming on this, Andrew, but we've talked about the rate differential. The volume is the area we're spending a ton of time on right now as well, building those pipelines for construction growth, but also kind of increasing the ramp rate and the C&I. We've mentioned a couple of quarters that we're opening new center in Utah County, which is where we're housed. And we're starting to get some momentum there.

We gave some guidance, which is something we rarely do on loan brokerage for the year. We'd sure like to make that look conservative as we push along. But now that's an internal focus that we're pushing pretty hard on right now is the loan growth and margin's a function of it, but the volumes [as] are more important right now. We don't have an issue with margins.

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Operator [21]

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Our next question comes from John Rodis from FIG Partners.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [22]

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Len, maybe just your comment -- you said -- on the reserve, you said we need to continue to build the reserve. Can you maybe try to quantify that a little bit for us going forward?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [23]

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I think we're pretty close to a total reserve percentage to where we're comfortable, and we want to hold around that. I don't think there's a whole lot of additional build on that. Other than we just want to make sure we're prepared to not dilute things as we go into the CECL requirements next year.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [24]

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Okay. Fair enough. So just -- so at 1.55% of loans plus or minus that level, you don't see it going substantially higher from here?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [25]

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We're pretty comfortable where we are.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [26]

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Okay. And I apologize, I had to jump off for a second. But on the margin, the core margin was down, what, 9 basis points to 5.18% in the quarter. Where do you sort of see that over the next couple of quarters? If you addressed that, I'm sorry. I had to jump off a second.

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [27]

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Yes. It was -- I just want to confirm the number. I think it was 11 -- yes, it was 11 basis points in the first quarter. It was 14 basis points in the quarter before, and 24 basis points a year ago. So I would expect that kind of same decline trend to continue on.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [28]

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Well, yes, so that's the yield accretion, right? But I mean, if you strip that out, the core margin was down 9 basis points. Do you -- what sort of -- do you still think you're going to have some compression in the core margin going forward? Or do you think you can hold it around 5.18%-ish?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [29]

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As we've said earlier, we're looking at kind of 5% is where we feel like that core margin is going to be overall. I mean, obviously, as we said, construction loans into the next couple of quarters are going to help with yield, but as we grow that C&I portfolio, that's a lower yield as well. So 5% is a pretty robust net interest margin, and we'd be happy with that.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [30]

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And it would take a couple -- a few quarters to get there, correct?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [31]

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Oh, yes. Yes.

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [32]

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It will -- and volume is going to drive it a little bit too, or at least mix of volume will drive it. We're right now heading into a little bit more of the construction season. That's -- we tend to get pretty good yields on those. But as we continue to crank up the C&I at lower yields, it's kind of a mix and timing.

Over time, long-term guidance, I think as Mark stated, that 5% number, is a core we're working to try to hold as close to as we can. But the quarterly ups and downs are really mix-driven and combined with volume. I would say if we have a -- the type of volume that we hope to have, it would be probably down a little bit from where it is today, still over 5%. If we have low volume and more in the construction season than we currently anticipate, I don't think you'd see it drop much.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [33]

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But obviously, that's the margin. You talk about loan growth and you provided some guidance like you said that you don't typically do of mid-single digits, and you hope to do better. So obviously, even with some margin compression, you're still going to grow net interest income dollars, correct?

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [34]

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Exactly.

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John Lawrence Rodis, FIG Partners, LLC, Research Division - Senior VP & Research Analyst [35]

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And do you think, as far as net interest income dollar growth, do you think that's sort of low to mid-single digit growth year-over-year, is that achievable?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [36]

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We hope so. We knew we were stepping out, giving any guidance on the growth. And this is normally a place we don't go, but you can make your assumptions from it.

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Operator [37]

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(Operator Instructions) Our next question comes from Don Worthington from Raymond James.

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Donald Allen Worthington, Raymond James & Associates, Inc., Research Division - Research Analyst [38]

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A couple of things. One, mortgage banking income, looks like it's holding at about $1.4 million the last couple of quarters. Do you kind of see that continuing at that level?

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [39]

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Yes. Mortgage income this quarter, we actually were a little bit disappointed with the results. A check as recently as this week on the pipeline, we're a little more bullish for Q2. We're actually doing some internal structuring issues to try to drive that a little harder that we hope to see over the next couple of quarters. So yes, I don't see it going down.

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Donald Allen Worthington, Raymond James & Associates, Inc., Research Division - Research Analyst [40]

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Okay. All right. And then a couple of lines in the noninterest income. Mark, you mentioned, I guess, the card processing was impacted this quarter by, I guess, some offset cost. Do you see that rebounding more into the $700,000 level? Or...

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [41]

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Yes. Yes. That's -- yes.

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Donald Allen Worthington, Raymond James & Associates, Inc., Research Division - Research Analyst [42]

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Okay. And then, service charges on deposit accounts, those were down this quarter or maybe they were elevated last quarter, I don't know. But...

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Mark K. Olson, People's Utah Bancorp - Executive VP & CFO [43]

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That is -- it's elevated in the fourth quarter, but we would expect that, that would grow as well, particularly with the treasury management team. We would expect that we would see some growth going on there.

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Operator [44]

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And ladies and gentlemen, at this time, I'm showing no additional questions. I'd like to turn the conference call back over to management for any closing remarks.

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Len E. Williams, People's Utah Bancorp - President, CEO & Director [45]

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Okay. Thank you all, again, for joining us. We appreciate the questions. And as always, if you have additional questions, feel free to give Mark, myself a call and we'll do our best to provide the information you're looking for.

Thank you for your support. Appreciate you joining us on the call. Have a great weekend everyone.

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Operator [46]

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Ladies and gentlemen, that does conclude today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines.