JASPER, IN / ACCESSWIRE / April 30, 2020 / SVB&T Corporation (OTCQX:SVBT), parent company of Springs Valley Bank & Trust Company, announced unaudited earnings for the three months ended March 31, 2020 of $815,000 or $1.46 earnings per share (EPS) - a 19.67% increase compared to the first quarter 2019 EPS. First quarter earnings compare favorably in total dollars to 2019 earnings of $683,000. This year to date (YTD) March 2020 performance translates to a return on average assets (ROAA) of 0.72%, compared to the same period 2019 of 0.67%.
Book value has decreased by 1.35% to $80.92 per share on March 31, 2020, compared to $82.03 per share on December 31, 2019. The SVB&T Corporation stock closed at $65.00 per share on April 29, 2020.
Total assets decreased $3.5 Million to $449.4 Million on March 31, 2020, compared to December 31, 2019 assets of $452.9 Million. Total loans, including loans held for sale, before allowances increased $5.8 Million to $356.1 Million on March 31, 2020 from $350.3 Million on December 31, 2019. Total deposits decreased $4.2 Million to $357.0 Million on March 31, 2020 from $361.2 Million on December 31, 2019.
Net interest income before provision expense for the three months ended March 31, 2020 was $3.6 Million compared to $3.3 Million for the same period 2019, an increase of $300,000. Earning assets grew considerably from the end of the first quarter of 2019 through the first quarter of 2020, and subsequently, interest income increased by approximately $364,000. This asset growth was funded by a mix of core deposits, brokered deposits, and borrowings. Additionally, yields on earning assets, deposits, and borrowings all decreased from the first quarter of 2019 to the first quarter of 2020; however, yields on interest earning assets decreased by a greater amount, causing net interest margin compression of approximately seven basis points.
Total non-interest income increased $252,000 to $1.5 Million for the period ending March 31, 2020, compared to the same period in 2019. The largest contributing factors to the favorable variance included an increase in sold mortgage income of $151,000 and an increase in income of $110,00 from fiduciary services of the Financial Advisory Group, as compared to 2019 first quarter revenues. It has been a strategic focus of Springs Valley's to capitalize upon the recent spike in mortgage refinancings, as rates dropped in the first quarter of 2020, in order to bolster fee income and potentially combat any margin compression.
YTD 2020 non-interest expense increased $342,000 to $3.9 Million, compared to the first three months ended March 31, 2019. This increase in non-interest expense is due in large part to elevated salary and employee benefits expense for the first quarter of 2020 (an increase of $146,000) driven by increased staffing to support growth, as well as an increase in premises and equipment expenses (occupancy expense) of $61,000. Both expense increases can largely be attributed to the opening of two new banking centers, with the Washington Banking Center opening in the second half of 2019 and the Princeton Banking Center opening at the beginning of 2020.
The $132,000 increase in net income, when comparing the first quarter 2020 to the first quarter 2019, was driven by increases in net interest income and non-interest income that outweighed the increase in non-interest expense as discussed in the preceding paragraphs. The outlook for the remainder of 2020 remains cautiously optimistic as Springs Valley strategically maneuvers through these uncertain times with a focus on helping our customers navigate the pandemic environment. We expect to continue to capitalize upon mortgage refinancings while rates remain low, as well as continuing to offer Paycheck Protection Program (PPP) loans through the SBA while government funding is available.
"The first quarter of 2020 has surpassed any period in recent history with regard to a serious worldwide health threat as well as corresponding widespread economic disruption," stated President & CEO Jamie Shinabarger. He went on to say, "Yet, against the backdrop of the Covid-19 pandemic, the Company has managed to keep staff healthy while meeting the day-to-day physical banking needs of our customers through the responsible adherence to social distancing guidelines. Additionally, having invested heavily in electronic banking tools, Springs Valley's wide array of digital banking products have provided the speed, convenience, and flexibility essential in challenging times such as these. Even though the breadth of these automated services rival that of our bigger brethren, we still answer our phones with a "live" person, providing the personalized touch that our brand has become known for and operating with an intense focus on you-our customers and communities."
Mr. Shinabarger concluded, "Springs Valley is positioned to weather this storm, having entered this tumultuous period with a very solid balance sheet and capital position, bolstered by the best eight consecutive years of financial performance in the 118-year history of the franchise. The officers, directors, and employees salute our health care providers and first responders during this stressful time and offer our heartfelt thanks!"
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For more information contact: Ryan Heim, Treasurer & CFO, SVB&T Corporation, at 812.634.4889 or rheim@svbt.com (on the OTCQX trading platform, find us under ticker symbol SVBT at www.otcmarkets.com).
Information conveyed in this press release regarding SVB&T Corporation and its subsidiaries anticipated future performance is forward-looking and therefore involves risks and uncertainties that could cause the results or developments to differ significantly from those indicated in these statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in general and local banking as well as mortgage conditions, competitive factors specific to markets in which the company and its subsidiaries operate, future interest rate levels, changes in local real estate markets, legislative and regulatory decisions or capital market conditions and other factors.
SVB&T Corporation is headquartered at 8482 West State Road 56, French Lick, Indiana 47432 with administrative offices at 1500 Main Street, Jasper, Indiana 47546. Springs Valley has two locations in both Dubois and Orange Counties. Its subsidiary Springs Valley Bank & Trust Company offers full-service bank and trust services. Springs Valley has products and services for all types of families and businesses: checking and savings accounts; certificates of deposit; electronic services; online mortgage applications and a variety of other loan options. In addition, the company has a full-service trust department managed by experienced, talented professionals specializing in estate planning, tax planning and wealth management. Investment Services are also offered by a licensed, professional Springs Valley representative. Springs Valley Bank & Trust's online address is www.svbt.com, and phone number is 800.843.4947.
Springs Valley Bank is a member of FDIC and is an Equal Housing Lender.
Selected Consolidated Financial Data of SVB&T Corporation
(In Thousands, Except Shares Outstanding and Per Share Data)
| Unaudited | Audited | |||||||||||
| 31-Mar | 31-Dec | |||||||||||
| 2020 | 2019 | 2019 | ||||||||||
| Assets | ||||||||||||
| Cash and Due From Banks | $ | 8,277 | $ | 14,408 | $ | 10,535 | ||||||
| Interest Bearing Time Deposits | 1,200 | 1,175 | 1,200 | |||||||||
| Fed Funds Sold | 4,208 | 9,173 | 10,745 | |||||||||
| Available for Sale Securities | 57,150 | 55,904 | 57,820 | |||||||||
| Other Investments | 2,567 | 2,169 | 2,567 | |||||||||
| Loans held for sale | 1,513 | 31 | 156 | |||||||||
| Loans net of allowance for loan losses | 350,324 | 316,891 | 345,822 | |||||||||
| Premises and Equipment | 6,580 | 5,268 | 6,636 | |||||||||
| Bank-owned Life Insurance | 8,867 | 8,095 | 8,820 | |||||||||
| Accrued Interest Receivable | 2,433 | 1,820 | 2,413 | |||||||||
| Foreclosed Assets Held for Sale | 108 | 58 | 129 | |||||||||
| Other Assets | 6,125 | 4,895 | 6,007 | |||||||||
| Total Assets | 449,352 | 419,887 | 452,850 | |||||||||
| Liabilities and Stockholders Equity | ||||||||||||
| Non-interest bearing deposits | 57,659 | 55,137 | 51,344 | |||||||||
| Interest bearing deposits | 299,316 | 286,589 | 309,846 | |||||||||
| Borrowed Funds | 37,651 | 27,599 | 34,764 | |||||||||
| Subordinated Debentures | 5,000 | 5,000 | 5,000 | |||||||||
| Accrued interest payable and other liabilities | 4,479 | 3,815 | 6,029 | |||||||||
| Total Liabilities | 404,105 | 378,140 | 406,983 | |||||||||
| Stockholders' equity - substantially restricted | 45,247 | 41,747 | 45,867 | |||||||||
| Total Liabilities and Shareholders' Equity | 449,352 | 419,887 | 452,850 | |||||||||
| Three Months Ended | ||||||||
| 31-Mar | ||||||||
| 2020 | 2019 | |||||||
| Operating Data: | ||||||||
| Interest & Dividend Income | $ | 4,880 | $ | 4,516 | ||||
| Interest Expense | 1,288 | 1,213 | ||||||
| Net Interest Income | $ | 3,592 | $ | 3,303 | ||||
| Provision for Loan Loss | 292 | 235 | ||||||
| Net Interest Income after Provision for Loan Losses | $ | 3,300 | $ | 3,068 | ||||
| Fiduciary activitities | 784 | 673 | ||||||
| Customer service fees | 180 | 164 | ||||||
| Increase in cash surender value of life insurance | 47 | 43 | ||||||
| Other income | 510 | 389 | ||||||
| Total noninterest income | 1,521 | 1,269 | ||||||
| Salary & employee benefits | 2,199 | 2,053 | ||||||
| Occupancy | 485 | 424 | ||||||
| Data processing | 400 | 394 | ||||||
| Deposit insurance premium | 35 | 30 | ||||||
| Professional fees | 202 | 203 | ||||||
| Other expenses | 598 | 473 | ||||||
| Total noninterest expense | 3,919 | 3,577 | ||||||
| Income before Income Taxes | 902 | 760 | ||||||
| Income Tax Expense | 87 | 77 | ||||||
| Net Income | $ | 815 | $ | 683 | ||||
| Shares Outstanding | 559,136 | 559,136 | ||||||
| Average Shares - Basic | 559,136 | 559,136 | ||||||
| Average Shares - Diluted | 559,136 | 559,136 | ||||||
| Basic Earnings per Share | $ | 1.46 | $ | 1.22 | ||||
| Diluted Earnings per Share | $ | 1.46 | $ | 1.22 | ||||
| Other Data: | ||||||||
| Yield on all Interest-earning Average Assets | 4.57 | % | 4.68 | % | ||||
| Cost on all Interest-earning Average Assets | 1.21 | % | 1.26 | % | ||||
| Interest Rate Spread | 3.36 | % | 3.42 | % | ||||
| Net Interest Margin | 3.36 | % | 3.43 | % | ||||
| Number of Full Service Banking Centers | 6 | 4 | ||||||
| Return on Average Assets (net income divided by average total assets) | 0.72 | % | 0.67 | % | ||||
| Average Assets | $ | 453,026 | $ | 407,131 | ||||
| Return on Average Equity (net income divided by average total equity) | 7.03 | % | 6.68 | % | ||||
| Average Equity | $ | 46,388 | $ | 40,916 | ||||
| Equity to Assets Ratio (EOP) | 10.07 | % | 9.94 | % | ||||
| Book Value per Share | $ | 80.92 | $ | 74.66 | ||||
| Market Value per Share - End of Period Close | $ | 66.89 | $ | 80.00 | ||||
SOURCE: SVB&T Corporation
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