People's Utah Bancorp (NASDAQ:PUB) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 12:00 pm ET
Mark K. Olson
expense was $16 million compared with $15 million a year earlier. Our efficiency ratio was 51% for the second quarter compared with 47% for the same period a year ago. For the six months ended June 30, non-interest expense was $32 million compared with $30 million and the efficiency ratio was 52% versus 48%.
The increase in non-interest expense for both the three and six months ended June 30, was primarily the result of higher salaries and employee benefits resulting primarily from higher incentive payments made to mortgage loan officers, higher data processing costs and higher marketing and advertising expenses. These amounts were partially offset by lower occupancy, equipment and depreciation costs.
As we look forward, we anticipate that net interest margins will remain narrow, given the Federal Reserve's outlook that interest rates will remain near zero through at least 2022. As a result, we are reviewing our overall cost to determine how we can operate our platform more efficiently and effectively, while retaining our high touch client experience. We anticipate making changes over the next several quarters to improve our operating leverage.
Income tax expense was $3.2 million for the second quarter compared with $3.5 million for the same period a year earlier. Effective tax rate was 23.6% compared to 24.1% a year ago. For the six months ended June 30, income tax expense was $6.6 million compared with $6.8 million for the same period a year earlier and the effective tax rate was 23.7% compared with 23.9%.
I'll turn the call back over to Len. Thanks, Len.
Len E. Williams
Thank you, Mark. Catch your breath. We find ourselves in a challenging and uncertain times as we navigate the effects of shutting down the economy to mitigate the impact of the pandemic. Throughout this crisis, our primary concern has been the safety and security of our associates. I'm very proud of our team and how they have handled this crisis.
Our next priority has been the safety and soundness of the bank. We believe that we've built a fortified balance sheet that will withstand the negative effects of this pandemic. Lastly, we've focused on providing relief to our impacted clients. It's our goal to provide as much assistance as we can to our clients and communities to support them through this crisis.
Thank you for joining us today. At this point, I'll turn the call back to Chuck, the moderator, to open the lines for the analyst questions.