Investor Presentation Janney West Coast Conference Len Williams, - PowerPoint PPT Presentation

Investor Presentation Janney West Coast Conference Len Williams, President & CEO Mark Olson, EVP & CFO Fourth Quarter 2019

Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties, including, but not limited to:  The credit and concentration risks of our lending activities; Changes in general economic conditions, either nationally or in our market areas;  Competitive market pricing factors and interest rate risks;  Market interest rate volatility;  Investments in new branches and new business opportunities;   Balance sheet (for example, loans) concentrations; Fluctuations in demand for loans and other financial services in our market areas;  Changes in legislative or regulatory requirements or the results of regulatory examinations;  The ability to recruit and retain key management and staff;  Risks associated with our ability to implement our expansion strategy and merger integration;   Stability of funding sources and continued availability of borrowings;  Adverse changes in the securities markets; The inability of key third-party providers to perform their obligations to us;  Changes in accounting policies and practices and the use of estimates in determining fair value of certain of our  assets, which estimates may prove to be incorrect and result in significant declines in valuation; and  These and other risks as may be detailed from time to time in our filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results in 2019 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating results, financial condition and stock price performance. Confidential Page 2

About Altabank  Nasdaq: PUB  Over 100+ years operating history;  Largest community bank in Utah;  Only public community bank in Utah;  Vision: to be the best bank for your business ;  Provide highly personalized service to small and medium-sized businesses and individuals;  26 full service branches from Preston, Idaho to St. George, Utah;  Focus on construction lending with business vertical in homebuilder finance;  Commercial banking centers focused on C&I lending;  Total assets $2.4 billion. Confidential Page 3

Market Focus Strategy to expand our footprint throughout the intermountain region by both acquisitions and organic growth Currently, 26 full service branches in Utah and Idaho Confidential Page 4

Market Dynamics Confidential Page 5

Rebranding of Organization Refresh brand to a more contemporary look;  Clarify our market position;  Bolsters the view of our size and scale;  Makes clear that clients receive same personalized service;  Position the brand to expand outside of the State of Utah  (1) Nasdaq: PUB Nasdaq: ALTA (1) Subject to shareholder approval Confidential Page 6

Business Model Customers — Small to medium sized local businesses, and moderate to high  net worth individuals; Market Niches — Real estate construction, land acquisition and development,  commercial real estate, commercial & industrial, agriculture, equipment leasing, and residential real estate; Loan Products — Commercial real estate, construction, commercial &  industrial, multi-family, single family, home equity lines, and other consumer loans; Customer Interaction — Local decision making, market specialists, full service  branch locations, local/regional advisory boards; and Community Service — Active involvement in communities, service hours, and  community donations. Confidential Page 7

Business Strategy People — Hire and retain the best bankers in our markets;  Products — Establish vertical business lines for home builder finance and  non-owner occupied real estate, expand C&I lending, grow mortgage banking business outside of Utah, retain strong business bankers in retail branches; Loan Products — Commercial real estate, construction, commercial &  industrial, multi-family, single family, home equity lines, and other consumer loans; Operating Efficiencies:  Ensure front facing staff continues to provide high-touch service while  automating back office for efficiencies; Develop operating model that is scalable;  Utilized technology to lower overall operating costs, while enhancing  customer experience. Confidential Page 8

Business Strategy—continued Continue Strong Organic Growth:  Continue to grow market share in product offerings in construction  lending; Accelerate growth in builder finance and non-owner occupied real  estate through business verticals; Diversify portfolio by expanding C&I business;  Increase fee income through focus on treasury management services;.  Actively Pursue Acquisition Opportunities:  Transactions that are within the intermountain region;  Tangible book value dilution earned back in less than 3 years;  Earning accretion within 1 year.  Confidential Page 9

Deposit Market Share in Utah # of Market % Increase Rank Bank Branches Deposits Share in Deposits Utah 1 Zions Bank 99 16,753,845 28.2% -1.3% 2 JPMorgan Chase 48 13,263,076 23.1% -4.5% 3 Wells Fargo Bank 94 12,410,886 20.7% -0.4% 4 Key Bank 32 4,330,657 6.9% 3.7% 5 U.S. Bank 63 2,636,329 4.3% 1.5% 6 Altabank 25 1,930,431 2.9% 11.1% 7 Cache Valley Bank 15 1,169,308 1.7% 13.2% 8 Bank of Utah 18 1,068,801 2.0% -9.8% 9 State Bank of Southern Utah 14 1,028,081 1.5% 16.5% 10 Central Bank 11 861,652 1.4% 2.9% Total for Bank In Market 495 59,813,065 Confidential Page 10

Deposit Market Share in Utah Counties Utah County Salt Lake County # of Total Deposits Total Market % Increase # of Total Deposits Total Market % Increase Rank Bank Branches in Market Share % in Deposits Rank Bank Branches in Market Share % in Deposits 1 Wells Fargo Bank (CA) 12 1,732,205 23.67 (0.80) 1 JPMorgan Chase (NY) 25 11,264,436 2.04 (6.22) 2 Zions Bank (UT) 13 1,635,929 22.35 6.71 2 Zions Bank (UT) 33 10,844,705 1.97 (3.55) 3 Altabank (UT) 12 1,185,582 16.20 9.26 3 Wells Fargo Bank (CA) 38 7,294,542 1.32 (0.31) 4 JPMorgan Chase (NY) 8 889,009 12.15 12.23 4 Key Bank (OH) 17 3,813,288 0.69 3.61 5 Central Bank (UT) 11 861,652 11.77 2.85 5 U.S. Bank (MN) 33 2,077,477 0.38 0.75 6 Rock Canyon Bank (UT) 5 359,255 4.91 23.52 6 Altabank (UT) 6 317,527 0.06 29.67 7 Capital Community Bank (UT) 4 342,007 4.67 5.29 Market Total 192 38,074,203 100.00 0.65 8 U.S. Bank (MN) 8 129,968 1.78 11.82 9 Key Bank 3 99,275 1.36 20.13 10 Bank of Utah 3 84,256 1.15 (3.15) Market Total 80 7,319,138 100.00 6.14 Cache County Washington County # of Total Deposits Total Market % Increase # of Total Deposits Total Market % Increase Rank Bank Branches in Market Share % in Deposits Rank Bank Branches in Market Share % in Deposits 1 Cache Valley Bank (UT) 3 477,699 27.02 18.39 1 Zions Bank (UT) 8 779,495 31.09 7.25 2 Zions Bank (UT) 5 454,405 25.70 1.03 2 Wells Fargo Bank (CA) 7 605,609 24.16 10.80 3 Wells Fargo Bank (CA) 2 283,152 16.01 (0.17) 3 Cache Valley Bank (UT) 4 397,543 15.86 9.43 4 Altabank (UT) 3 277,229 15.68 11.25 4 State Bank of Southern Utah (UT) 4 309,501 12.35 7.66 5 JPMorgan Chase (NY) 2 90,405 5.11 9.12 5 JPMorgan Chase (NY) 4 180,525 7.20 10.15 6 Bank of Utah 2 76,281 4.31 0.31 6 U.S. Bank (MN) 2 105,886 4.22 5.41 7 Washington Federal (WA) 1 53,472 3.02 5.90 7 Altabank (UT) 1 94,669 3.78 (12.20) 8 Key Bank (OH) 1 41,086 2.32 33.65 8 Rock Canyon Bank 1 33,793 1.35 31.22 Market Total 20 1,768,234 100.00 7.75 Market Total 31 2,507,021 100.00 7.96 Confidential Page 11

Deposit Market Share in UT, ID, and WY Average Total Total Branch Branches Deposits Size # Bank Name City State 2019 2019 ($000) ($000) 1 Wells Fargo Bank Sioux Falls SD 179 20,399,272 113,962 2 Zions Bank Salt Lake City UT 125 18,326,642 146,613 3 JPMorgan Chase Bank Columbus OH 69 14,360,897 208,129 4 US Bank Minneapolis MN 166 7,825,665 47,143 5 KeyBank Cleveland OH 55 6,179,304 112,351 6 First Interstate Bank Billings MT 41 3,862,290 94,202 7 Glacier Bank Kalispell MT 51 2,998,161 58,787 8 Altabank American Fork UT 26 1,985,201 76,354 9 Bank of America Charlotte NC 5 1,865,342 373,068 10 D.L. Evans Bank Burley ID 34 1,367,049 40,207 11 Bank of the West San Francisco CA 33 1,339,167 40,581 12 Washington Federal Bank Seattle WA 34 1,268,876 37,320 13 Cache Valley Bank Logan UT 16 1,169,308 73,082 14 Bank of Utah Ogden UT 18 1,068,801 59,378 15 State Bank of Southern Utah Cedar City UT 14 1,028,081 73,434 Confidential Page 12