If bad loans have been a major cause of problems at banks and credit unions, how are problem loans affecting Bank of Utah?
While we aren’t without problem loans, we are encouraged by the fact that Bank of Utah’s nonaccrual loans have declined over the past year. We continue to work hard with customers who have struggled to make payments. Non-Accrual loans/Total Loans at the end of 2008 were 2.76%. At year end 2009, this ratio had declined to 2.34%. We are optimistic about the coming year and hope to see continued decline in this ratio as the economy improves. Much of our success and performance of our loan portfolio can be summed up by the following quote from a story in the Sale Lake Tribune. “About five or six years ago, we strengthened our loan department by bringing in a number of older, more seasoned, bankers. They all insisted on some pretty stringent loan standards, and it helped keep us out of a lot of trouble,” Said Doug DeFries, the chief financial officer at Bank of Utah, which ranks as one of the state’s stronger banks. (Utah Banks Solid Amid Cash Crisis, Oberbeck, Steve, Salt Lake Tribune, Sep
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