Loading, Please Wait...
FAYETTEVILLE, Ark., July 10, 2019 (GLOBE NEWSWIRE) -- White River Bancshares Company (OTCQX: WRIV), (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today reported net income increased 24.95% to $1.51 million, or $1.55 per diluted share, in the second quarter of 2019, compared to $1.21 million, or $1.26 per diluted share, in the second quarter of 2018. In the first quarter of 2019, the Company earned net income of $1.17 million, or $1.20 per diluted share.
In the first six months of the year, net income increased 16.13% to $2.68 million, or $2.75 per diluted share, compared to $2.31 million, or $2.40 per diluted share, in the first six months of 2018. All financial results are unaudited.
Second Quarter 2019 Financial Highlights:
“Solid revenue growth, combined with improving operating efficiencies, contributed to improved financial results for both the second quarter and the first six months of 2019,” said Gary Head, President and Chief Executive Officer. “We generated strong year-over-year growth in both loans and core deposits, while keeping operating expenses in check. Earlier this spring we opened a new branch and announced the promotion of a number of senior leaders as part of our multi-step growth strategy process. As a result of these initiatives, we are well positioned to take advantage of new opportunities, as we continue to expand our franchise in Northwest Arkansas.”
The Company’s net interest margin was 3.97% in the second quarter of 2019, the same as in the preceding quarter, and a 31 basis point increase when compared to 3.66% in the second quarter of 2018. In the first six months of 2019, the net interest margin improved 27 basis points to 3.97%, compared to 3.70% in the first six months of 2018.
Second quarter net interest income increased by 8.94% to $6.02 million, from $5.53 million in the second quarter of 2018, and increased by 3.05% when compared to $5.84 million in the first quarter of 2019. Total interest income increased by 11.23% to $7.96 million in the second quarter of 2019 from $7.16 million during the second quarter of 2018 and increased by 4.76% compared to $7.60 million in the preceding quarter. Total interest expense increased by 18.98% to $1.94 million in the second quarter of 2019, from $1.63 million during the second quarter of 2018, and increased 10.44% compared to $1.75 million in the preceding quarter, primarily due to the increase in interest-bearing deposits. In the first six months of 2019, net interest income increased 9.69% to $11.87 million, compared to $10.82 million in the first six months of 2018.
Non-interest income was $821,595 in the second quarter of 2019, compared to $977,978 in the second quarter a year ago and $845,490 in the preceding quarter. In the first six months of the year, non-interest income was $1.67 million, compared to $1.98 million in the first six months of 2018.
Non-interest expense was $5.05 million in the second quarter of 2019 compared to $4.85 million in the second quarter of 2018 and $4.88 million in the preceding quarter. Year-to-date, non-interest expense was $9.92 million, compared to $9.78 million in the same period a year ago.
Balance Sheet Review
Total assets increased by 2.31% to $655.94 million at June 30, 2019, from $641.15 million at June 30, 2018, and increased 1.01% compared to $648.70 million at March 31, 2019. Cash and cash equivalents decreased to $26.97 million at June 30, 2019 from $56.34 million a year ago. Investment securities increased to $56.49 million at June 30, 2019 from $49.78 million a year ago.
Loans, net of allowance for loan losses, increased 5.67% to $535.28 million at quarter-end, compared to $506.57 million a year ago, and increased 1.49% compared to $527.41 million three months earlier.
Total deposits increased 2.17% to $538.96 million at June 30, 2019 compared to $527.50 million a year ago and increased modestly compared to $535.04 million at March 31, 2019. Non-interest-bearing deposits increased 8.79% to $108.14 million at June 30, 2019 from $99.40 million a year ago, and interest-bearing deposits increased moderately to $430.83 million at quarter-end from $428.10 million a year ago.
FHLB advances decreased to $25.17 million at June 30, 2019 from $38.07 million at June 30, 2018. Notes payable decreased to $11.79 million in the second quarter from $12.37 million over the same period a year ago.
Total stockholders’ equity increased 11.19% to $66.81 million at June 30, 2019 from $60.09 million at June 30, 2018 and increased 3.51% when compared to $64.55 million at March 31, 2019. Book value per diluted common share increased to $68.51 at June 30, 2019 from $62.59 at June 30, 2018 and $66.19 at March 31, 2019.
“Credit quality improved during the second quarter with nonperforming assets decreasing to $6.33 million, or 0.97% of total assets, and no nonperforming loans remained on the books,” said Head.
Due to net recoveries, the Company had no provision for loan losses in both the current quarter and the preceding quarter. Net loan recoveries were $37,499 in the second quarter of 2019, compared with recoveries of $6,260 in the first quarter of 2019 and recoveries of $52,781 in the second quarter a year ago.
There were no nonperforming loans on the books at June 30, 2019 or at March 31, 2019. At June 30, 2018, nonperforming loans totaled $182,874. Nonperforming assets decreased to $6.33 million at June 30, 2019 compared to $7.66 million at March 31, 2019 and $10.07 million at June 30, 2018. Total non-performing assets improved to 0.97% of total assets at June 30, 2019, compared to 1.18% of total assets three months earlier and 1.57% a year earlier.
The allowance for loan losses was $7.01 million, or 1.29% of total loans, at June 30, 2019 compared to $7.31 million, or 1.42% of total loans, at June 30, 2018.
The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio of 11.68%, Common equity tier 1 capital ratio of 13.16%, Tier 1 capital ratio of 13.16% and Total capital ratio of 14.39%, at June 30, 2019.
About White River Bancshares Company
White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas. Both are headquartered in Fayetteville, Arkansas. The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers and Brinkley, Arkansas. Founded in 2005, Signature Bank of Arkansas provides a full line of financial services to small businesses, families and farms. White River Bancshares Company (OTCQX: WRIV), qualified to trade on the OTCQX® Best Market in December 2018.
About the Region
White River Bancshares Company is located in thriving Northwest Arkansas in the Fayetteville-Springdale-Rogers MSA. The region is home to the corporate headquarters for Walmart Stores Inc, Sam’s Club, Tyson Foods, Simmons Foods, and J.B. Hunt Transport. Hundreds of other market-leading companies including Procter & Gamble, Johnson & Johnson, Coca-Cola and Rubbermaid maintain offices in the region in order to maintain their relationships with the locally-based Fortune 500 companies. Northwest Arkansas is also home to the state’s flagship public educational institution, The University of Arkansas and its Sam M. Walton College of Business. The region has seen significant growth in its medical and arts infrastructures with the continued expansion of Washington Regional Medical System, Northwest Medical System, Mercy Health System of Northwest Arkansas and Arkansas Children’s Hospital Northwest. Crystal Bridges Museum of American Art and the Walton Arts Center have led the expansion of the arts. Northwest Arkansas has been repeatedly recognized in recent years as one of the best places to live in the country and remains one of the nation’s fastest-growing regions.
Forward Looking Statements
This press release contains statements about future events. These forward-looking statements, which are based on certain assumptions of management of the Company and the Bank and describe our future plans, strategies and expectations, can generally be identified by use of forward-looking terminology such as “may,” “will,” “believe,” “plan,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or the negative of those terms. Our ability to predict results of future events and the actual effect of future plans or strategies are inherently uncertain and actual results may differ materially from those predicted in such forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects or that could affect the outcome of such forward-looking statements include, but are not limited to, changes in interest rates; the economic health of the local real estate market; general economic conditions; credit deterioration in our loan portfolio that would cause us to increase our allowance for loan losses; legislative or regulatory changes; technological developments; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of our loan and securities portfolios; demand for loan products in our market areas; deposit flows and costs of capital; competition; retention and recruitment of qualified personnel; demand for financial services in our market areas; and changes in accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
|WHITE RIVER BANCSHARES COMPANY|
|CONSOLIDATED BALANCE SHEETS|
|June 30, 2019, March 31, 2019 and June 30, 2018|
|UNAUDITED||June 30, 2019||March 31, 2019||June 30, 2018|
|Cash and due from banks||$||26,921,777||$||31,726,670||$||55,226,930|
|Federal funds sold||49,920||195,532||1,112,534|
|Total cash and cash equivalents||26,971,697||31,922,202||56,339,464|
|Loans held for sale||1,910,237||1,333,370||927,180|
|Loans, net of allowance for loan losses||535,276,253||527,408,940||506,573,718|
|Premises and equipment, net||19,186,933||16,874,523||8,415,953|
|Foreclosed assets held for sale||6,331,228||7,659,728||9,883,440|
|Accrued interest receivable||2,369,594||2,178,508||2,091,756|
|Deferred income taxes||2,058,613||2,394,267||2,103,544|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Demand deposits||- non-interest bearing||$||108,136,610||$||110,401,854||$||99,402,119|
|- interest bearing||136,078,594||135,542,375||129,327,857|
|Time deposits||- under $250M||163,753,062||166,639,935||184,887,750|
|- $250M and over||117,425,097||109,234,395||102,314,082|
|Federal Home Loan Bank advances||25,173,016||25,272,500||38,065,658|
|Accrued interest payable||726,945||614,848||555,617|
|Treasury stock, at cost||(50,824||)||(49,888||)||(49,888||)|
|Accumulated other comprehensive loss||194,467||(416,526||)||(1,140,390||)|
|Total stockholders' equity||66,813,135||64,545,128||60,087,932|
WHITE RIVER BANCSHARES COMPANY
|CONSOLIDATED STATEMENTS OF INCOME|
|For the three months ended June 30, 2019, March 31, 2019 and June 30, 2018|
|For the Three Months Ended|
|UNAUDITED||June 30, 2019||March 31, 2019||June 30, 2018|
|Loans, including fees||$||7,544,769||$||7,166,824||$||6,690,231|
|Federal funds sold and other||56,882||70,787||173,561|
|Total interest income||7,959,955||7,598,503||7,156,408|
|Federal Home Loan Bank advances||156,632||153,014||188,275|
|Federal funds purchased and other||2,951||17,290||-|
|Total interest expense||1,937,248||1,754,046||1,628,159|
|Net interest income||6,022,707||5,844,457||5,528,249|
|Provision for loan losses||-||-||-|
|Net interest income after provision for loan losses||6,022,707||5,844,457||5,528,249|
|Service charges and fees on deposits||163,127||183,873||199,066|
|Wealth management fee income||434,754||409,459||444,898|
|Secondary market fee income||250,271||120,992||293,901|
|Loss on sales and write-downs of foreclosed assets||(181,382||)||-||(105,080||)|
|Total non-interest income||821,595||845,490||977,978|
|Salaries and benefits||3,289,366||3,272,837||3,127,629|
|Occupancy and equipment||598,348||528,130||522,489|
|Marketing and business development||175,625||141,099||224,510|
|Total non-interest expense||5,047,228||4,876,370||4,849,425|
|Income before income taxes||1,797,074||1,813,577||1,656,802|
|Income tax provision||283,154||646,904||445,136|
|Basic earnings per common share||$||1.55||$||1.20||$||1.38|
|Diluted earnings per common share||$||1.55||$||1.20||$||1.26|
|White River Bancshares Company|
|Selected Financial Data||
Three Months Ended
|UNAUDITED||June 30, 2019||March 31, 2019||June 30, 2018|
|Selected Financial Condition Data: End of Period Balances|
|Allowance for Loan Losses||7,009,607||6,972,107||7,309,751|
|Common Shareholders' Equity||66,813,135||64,545,128||60,087,932|
|Selected Financial Condition Data: Average Balances|
|Common Shareholders' Equity||65,248,213||63,335,288||50,297,642|
|Selected Operating Results:|
|Net Interest Income||6,022,707||5,844,457||5,528,249|
|Provision for Loan Losses||-||-||-|
|Net Interest Income After Provision for Loan Losses||6,022,707||5,844,457||5,528,249|
|Income Before Income Taxes||1,797,074||1,813,577||1,656,802|
|Income Tax Provision||283,154||646,904||445,136|
|Basic Net Income per Common Share||$||1.55||$||1.20||$||1.38|
|Diluted Net Income per Common Share||1.55||1.20||1.26|
|Dividends Paid per Common Share||-||-||-|
|Book Value Per Common Share||68.52||66.19||62.59|
|Book Value Per Common Share-Diluted||68.51||66.19||62.59|
|Common Shares Outstanding||975,065||975,077||960,077|
|Diluted Common Shares Outstanding||975,204||975,216||960,077|
|Basic Weighted Average Common Shares Outstanding||975,070||975,077||877,676|
|Diluted Weighted Average Common Shares Outstanding||975,210||975,216||960,077|
|Return on Average Assets||0.95||%||0.76||%||0.77||%|
|Return on Average Common Shareholders' Equity||9.31||%||7.47||%||9.66||%|
|Average Common Shareholders' Equity to Average Assets||10.16||%||10.11||%||7.98||%|
|Net Interest Margin||3.97||%||3.97||%||3.66||%|
|Selected Asset Quality:|
|Net (Recoveries) Charge-offs||$||(37,499||)||$||(6,260||)||$||(52,781||)|
|Total Nonperforming Loans to Total Loans||0.00||%||0.00||%||0.04||%|
|Total Nonperforming Loans to Total Assets||0.00||%||0.00||%||0.03||%|
|Total Nonperforming Assets to Total Assets||0.97||%||1.18||%||1.57||%|