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CST: 17/07/2019 07:47:35   

White River Bancshares Co. Earns $1.51 Million, or $1.55 Per Diluted Share, in the Second Quarter of 2019

6 Days ago

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:

  • Second quarter net income was $1.51 million, or $1.55 per diluted share, compared with $1.21 million, or $1.26 per diluted share, in the second quarter of 2018.
  • Second quarter net interest margin (“NIM”) expanded by 31 basis points to 3.97% compared to the second quarter a year ago and remained unchanged compared to the preceding quarter.
  • Net loans of $535.28 million at June 30, 2019, an increase of 5.67% from June 30, 2018.
  • Total deposits of $538.96 million at June 30, 2019, an increase of 2.17% from June 30, 2018.
  • Non-interest-bearing deposits increased 8.79% to $108.14 million at June 30, 2019, compared to $99.40 million a year ago.
  • Non-performing assets at June 30, 2019 improved to 0.97% of total assets, from 1.57% a year ago.
  • Book value per diluted common share increased to $68.51 at June 30, 2019, from $62.59 a year ago.
  • Total risk-based capital ratio of 14.39% and Tier 1 leverage ratio of 11.68% for the Bank at June 30, 2019.

“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.”

Income Statement

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

“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.

Capital

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    
                 
ASSETS  
                 
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    
                 
Investment securities   56,491,454       54,131,226       49,778,831    
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    
Other investments     2,779,585       2,761,185       2,710,885    
Other assets       2,567,363       2,039,131       2,329,354    
                 
      $ 655,942,957     $ 648,703,080     $ 641,154,125    
                 
LIABILITIES AND STOCKHOLDERS' EQUITY  
                 
Deposits:                
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    
Savings deposits     13,569,006       13,223,075       11,568,382    
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    
                 
Total deposits       538,962,369       535,041,634       527,500,190    
                 
Federal Home Loan Bank advances   25,173,016       25,272,500       38,065,658    
Note payable       11,793,120       11,942,531       12,371,805    
Accrued interest payable   726,945       614,848       555,617    
Other liabilities       12,474,372       11,286,439       2,572,923    
                 
Total liabilities       589,129,822       584,157,952       581,066,193    
                 
Stockholders' equity:            
Common stock       9,763       9,763       9,613    
Surplus       87,420,115       87,276,085       86,971,084    
Accumulated deficit   (20,760,386 )     (22,274,306 )     (25,702,487 )  
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    
                 
      $ 655,942,957     $ 648,703,080     $ 641,154,125    
                 


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
           
Interest income:          
Loans, including fees $ 7,544,769     $ 7,166,824   $ 6,690,231  
Investment securities   358,304       360,892     292,616  
Federal funds sold and other   56,882       70,787     173,561  
           
Total interest income   7,959,955       7,598,503     7,156,408  
           
Interest expense:          
Deposits   1,630,369       1,436,226     1,285,442  
Federal Home Loan Bank advances   156,632       153,014     188,275  
Note payable   147,296       147,516     154,442  
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  
           
Non-interest income:          
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 )
Other   154,825       131,166     145,193  
           
Total non-interest income   821,595       845,490     977,978  
           
Non-interest expense:          
Salaries and benefits   3,289,366       3,272,837     3,127,629  
Occupancy and equipment   598,348       528,130     522,489  
Data processing   291,728       299,029     276,968  
Marketing and business development   175,625       141,099     224,510  
Professional services   321,401       332,854     394,213  
Other   370,760       302,421     303,616  
           
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  
           
Net income $ 1,513,920     $ 1,166,673   $ 1,211,666  
           
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          
  Assets $ 655,942,957     $ 648,703,080     $ 641,154,125  
  Investment Securities   56,491,454       54,131,226       49,778,831  
  Loans, gross   544,196,098       535,714,417       514,810,649  
  Allowance for Loan Losses   7,009,607       6,972,107       7,309,751  
  Deposits   538,962,369       535,041,634       527,500,190  
  FHLB Advances   25,173,016       25,272,500       38,065,658  
  Note Payable   11,793,120       11,942,531       12,371,805  
  Common Shareholders' Equity   66,813,135       64,545,128       60,087,932  
             
Selected Financial Condition Data: Average Balances          
  Assets $ 642,050,388     $ 626,343,422     $ 630,335,791  
  Earning Assets   609,106,052       596,692,901       606,428,371  
  Investment Securities   55,549,672       55,240,637       49,735,817  
  Loans, gross   540,960,725       526,258,915       513,660,533  
  Deposits   524,810,894       509,466,943       516,889,839  
  FHLB Advances   26,536,920       28,854,682       38,098,067  
  Note Payable   11,830,581       11,977,464       12,402,359  
  Common Shareholders' Equity   65,248,213       63,335,288       50,297,642  
             
Selected Operating Results:          
  Interest Income $ 7,959,955     $ 7,598,503     $ 7,156,408  
  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  
  Noninterest Income   821,595       845,490       977,978  
  Noninterest 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  
  Net Income $ 1,513,920     $ 1,166,673     $ 1,211,666  
             
  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  
             
Selected Ratios:          
  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 %
  Efficiency   73.74 %     72.89 %     74.54 %
             
Selected Asset Quality:          
  Net (Recoveries) Charge-offs $ (37,499 )   $ (6,260 )   $ (52,781 )
  Classified Assets   6,613,712       7,944,129       10,247,264  
  Nonperforming Loans   -       -       182,874  
  Nonperforming Assets   6,331,228       7,659,728       10,066,314  
  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 %
                         

Contact:
Scott Sandlin
479-684-3754

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