On behalf of BOU Bancorp, Inc., the holding company of Bank of Utah (Bank) and Utah Risk Management, Inc. (URM), collectively known as the Company, I am pleased to report a third quarter dividend of $1.15 per share was paid on October 20, 2017. The dividend paid for the second quarter of 2017 was $0.60 per share. The dividend paid for the third quarter of 2016 was $0.65 per share. The large increase in the dividend was due to a $0.85 million return of capital from URM, our captive insurance company.
Net income for the third quarter of 2017 was $4.6 million compared to $4.2 million for the second quarter of 2017, an increase of 9.5 percent and $4.4 million for the third quarter of 2016, a 4.6 percent increase. Consolidated net income for the nine months ending September 30, 2017 was $12.6 million compared to $12.7 million for the comparable 2016 period.
The Company continues to produce strong growth and income results for 2017. We have benefited from a robust local economy and our markets exceed national averages in many key areas. According to the Kem Gardner Institute at the University of Utah, Utah’s personal income in 2017 has grown by 4.4 percent and is ranked second in the nation. Additionally, the state ranks first in population growth, providing a steady supply of future workers and consumers.
Utah is also the youngest state in the nation with a median age of 31 and its population is highly educated. Many new companies have been attracted to Utah because of these factors. In addition, our housing prices are low compared to Southern California and Seattle markets, from which we are getting in-migration. Although the Utah economy is strong, we cannot predict what may happen nationally or internationally that may affect our market. The Bank has worked diligently to prepare for any economic situation.
Looking To The Future
People expect the Bank to keep their assets safe, to have easy and diverse ways to access accounts and have knowledgeable, friendly people who can aid them while making financial decisions. Our goal is to meet and exceed these expectations.
Last month, we held information security conferences in four of our markets to educate our customers on cyber-attacks. Like the Bank, it is important for individuals and businesses to invest in protecting accounts and identities. Obtaining personal information is the new trading commodity among thieves. At Bank of Utah, we are continually updating our systems to keep your information as safe as possible and yet still allow you the ease of access that you need for your financial endeavors.
Additionally, if you have a financial need, such as a business loan, home purchase, personal or corporate trust, checking or savings—or even a simple question—we have experienced employees that will help you find what is best for you and for your company.
Douglas L. DeFries
Bank-President and CEO