 Second Quarter 2020 Highlights Total assets grew 754 million, or 33, year-over-year to 3.1 billion at June 30, 2020. Total deposits grew 631 million, or 32, year-over-year to 2.6 billion at June 30, 2020. Loans declined 13.6 million, or 0.8, year-over-year to 1.7 billion as the Company has further tightened underwriting standards and reduced loan concentrations, which was offset by the funding of 84.6 million in SBA PPP loans. Cash and liquid investments securities totaled 1.3 billion, or 42 of total assets, at June 30, 2020. Tangible equity plus allowance for credit losses totaled 364 million, or 22.0 of total loans held for investment, at June 30, 2020, which provides overall credit protection for both expected and unexpected credit losses in the Companys loan portfolio. Tangible book value per share increased 13.5 year-over-year to 17.12 at June 30, 2020. Return on average assets was 1.65 and return on average equity was 12.55 for the six months ended June 30, 2020.AMERICAN FORK, Utah, July 29, 2020 GLOBE NEWSWIRE -- AltabancorpTM Nasdaq: ALTA the Company or Alta reported net income of 10.3 million for the second quarter of 2020 compared with 10.8 million for the first quarter of 2020, and 11.0 million for the second quarter of 2019. Diluted earnings per common share were 0.55 for the second quarter of 2020 compared with 0.57 for the first quarter of 2020, and 0.58 for the second quarter of 2019.Annualized return on average assets was 1.52 for the second quarter of 2020 compared with 1.80 for the first quarter of 2020, and 1.96 for the second quarter of 2019. Annualized return on average equity was 12.06 for the second quarter of 2020 compared with 13.05 for the first quarter of 2020, and 14.33 for the second quarter of 2019. The Board of Directors declared a quarterly dividend payment of 0.13 per common share. The dividend will be payable on August 17, 2020 to shareholders of record as of August 10, 2020. The dividend payout ratio for earnings for the second quarter of 2020 was 24. This continues the over 50-year trend of paying dividends by the Company.As with most businesses, we have been significantly impacted by the COVID-19 pandemic. Our first priority has been the safety and stability of our associates and their families. Next, we directed our attention to our clients, who were financially impacted by the sudden and substantial negative economic effects of the pandemic. We have offered to date payment relief to approximately 435 business and 108 individual clients on approximately 327 million in outstanding loan balances, said Len Williams, President and Chief Executive Officer of AltabancorpTM.In addition, we funded 84.6 million in Small Business Administration SBA Paycheck Protection Program PPP loans to approximately 333 businesses. We will continue to work together with our clients to ensure that we can provide financial solutions to assist them on their path to recovery as we overcome the pandemic.Mr. Williams continued, Our strong balance sheet provides safety and security to our stakeholders as we work through the negative effects of the economic shutdown. We believe our balance sheet strength is reflected in the level of allowance for credit losses held by us and our strong regulatory capital position. In addition, our focus to reduce loan concentrations in our ADC and commercial real estate portfolios and the tightening of our overall underwriting standards over the past couple of years will help to mitigate the negative effects the pandemic may have on our loan portfolio. Lastly, our strong liquidity position provides us the flexibility to aggressively grow as the economy recovers.Loans and Credit QualityLoans held for investment declined 13.6 million, or 0.8, to 1.66 billion at June 30, 2020 compared with 1.67 billion at June 30, 2019. Quarter-to-date average loans increased 6.7 million, or 0.40, to 1.69 billion for both the three months ended June 30, 2020 and June 30, 2019. The Company offered temporary loan payment relief to 435 businesses and 108 individuals totaling approximately 327 million, or 19.7 of total loans, excluding SBA PPP loans, to address cash flow challenges for those impacted by the COVID-19 pandemic. Of the 327 million in loans, where the payments were deferred, 89.54 were on loans that were secured by real estate with a weighted average loan to value LTV ratio of approximately 50. Loans that the Company has offered temporary loan payment relief included approximately 88.5 million that the Company has identified as higher risk business sectors, including hotels, retail, restaurants and assisted living centers. The Company expects to reamortize each loan at the end of the payment deferral period to extend the maturity date rather than retain the original maturity date with a balloon payment upon maturity. The Company believes this approach provides its clients with the short-term payment relief they need to address the negative cash flow effects resulting from the pandemic and mitigates unusual large cash outlays after the deferment.The Company funded 333 applications from businesses that participated in the SBA PPP for a total of 84.6 million. The SBA announced that they would begin taking applications for loan forgiveness on August 10, 2020, at which time the Company will immediately begin filing such applications.The allowance for credit losses increased 14.6 million, or 52.23, to 42.7 million at June 30, 2020 compared with 28.0 million the same period a year ago. The allowance for credit losses to loans held for investment was 2.57 2.71, excluding SBA PPP Loans at June 30, 2020 compared with 1.68 at June 30, 2019. Remaining accretable discounts on non-purchased credit deteriorated loans was 2.9 million at June 30, 2020, which provides additional protection.Non-performing loans decreased to 6.4 million at June 30, 2020 compared with 8.8 million at December 31, 2019. Non-performing loans to total loans were 0.39 at June 30, 2020 compared with 0.53 at December 31, 2019. Non-performing assets decreased to 6.4 million at June 30, 2020 compared with 8.8 million at December 31, 2019. Non-performing assets to total assets were 0.21 at June 30, 2020 compared with 0.37 at December 31, 2019.Commenting on the credit quality trends, Mr. Williams said, While were pleased with the positive credit quality trends we experienced year to date, we do not expect these trends to continue short-term as both governmental and our bank relief programs start to wind down in the third quarter. The severity of the impact to our credit quality trends will depend upon the length of time that businesses and individuals are negatively impacted by the COVID-19 pandemic and the timing and level of recovery that occurs post-pandemic. Mr. Williams continued, The economy for the State of Utah was performing better than most states and the national averages going into the pandemic and is experiencing a more rapid recovery coming out of the pandemic. The unemployment rate for the nation was 3.5 at February 28, 2020, rose to 14.7 at April 30, 2020, and recovered to 11.1 at June 30, 2020. The unemployment rate for the State of Utah was 2.5 at February 28, 2020, rose to 10.4 at April 30, 2020, and recovered to 5.1 at June 30, 2020, which is the second lowest unemployment rate of any State in the United States. Nationally, total jobs increased by 1.6 year-over-year at February 28, 2020, fell to 13.4 at April 30, 2020, and has recovered to 8.6 at June 30, 2020. Total jobs increased year-over-year for the State of Utah to 2.4 at February 28, 2020, fell to 7.2 at April 30, 2020, and has recovered to 2.7 at June 30, 2020. This is the lowest year-over-year change jobs of any State in the United States. Despite the negative effects that the pandemic has had on the overall year-over-year change in jobs in Utah at the end of the second quarter, construction jobs have actually increased 8.7, which we believe is a leading indicator of the beginning of an economic recovery in Utah. We believe that Utah will continue to outperform other states and the nation as a whole as we continue to recover from the negative economic effects of the pandemic.Deposits and LiabilitiesTotal deposits increased 631 million, or 31.86, to 2.61 billion at June 30, 2020 compared with 1.98 billion at June 30, 2019. Non-interest bearing deposits increased 278 million, or 39.36, to 985 million at June 30, 2020 compared with the same period a year earlier, and interest bearing deposits increased, 353 million, or 27.70, to 1.63 billion at June 30, 2020 compared with the same period a year ago. Non-interest-bearing deposits to total deposits was 37.71 as of June 30, 2020 compared with 35.68 as of June 30, 2019.Commenting on the significant increase in deposits, Mr. Williams said, The increase in total deposits is primarily the result of both governmental and bank relief programs, and businesses and consumers actively conserving cash to try to counter the negative effects of the shutdown in the economy from the COVID-19 pandemic. In particular, we have seen that many of our borrowers, who requested payment deferments, have held on to their cash that would have otherwise been used to make their monthly payments, and approximately 15 of borrowers, who requested a loan deferral, have continued to make their monthly payment. 