White River Bancshares Co. Earns $1.17 Million, or $1.20 Per Diluted Share, in the First Quarter of 2019
FAYETTEVILLE, Ark., April 15, 2019 (GLOBE NEWSWIRE) -- White
River Bancshares Company (OTCQX: WRIV), (the “Company”) the
holding company for Signature Bank of Arkansas (the “Bank”),
today reported that strong core deposit growth and net
interest margin expansion contributed to net income
increasing 6.39% to $1.17 million, or $1.20 per diluted
share, in the first quarter of 2019, compared to $1.10
million, or $1.14 per diluted share, in the first quarter of
2018. In the fourth quarter of 2018, the Company earned
net income of $928,000, or $0.95 per diluted share. All
financial results are unaudited.
First Quarter 2019 Financial Highlights:
- First quarter net income was $1.17 million, or $1.20 per diluted share, compared with $1.10 million, or $1.14 per diluted share, in the first quarter of 2018.
- First quarter net interest margin (“NIM”) expanded by 23 basis points to 3.97% compared to the first quarter a year ago.
- Net loans of $527.41 million at March 31, 2019, an increase of 5.22% from March 31, 2018.
- Total deposits of $535.04 million at March 31, 2019, an increase of 5.11% from March 31, 2018.
- Non-interest-bearing deposits increased 25.09% to $110.40 million at March 31, 2019 compared to $88.26 million a year ago.
- Non-performing assets at March 31, 2019 improved to 1.18% of total assets from 1.73% a year ago.
- Book value per common share increased to $66.19 at March 31, 2019 from $61.39 a year ago.
- Total risk-based capital ratio of 14.55% and Tier 1 leverage ratio of 11.72% for the Bank at March 31, 2019.
“We delivered solid first quarter 2019 earnings, supported by strong net interest income growth, continued loan and core deposit growth, an improved net interest margin and solid asset quality metrics ,” said Gary Head, President and Chief Executive Officer. “We are pleased to be opening our newest branch office this month, located at 3712 South Pinnacle Hills Parkway Suite 102, in Rogers Arkansas. This new branch location further expands our network and presence in Northwest Arkansas, one of the fastest growing metro areas in the country. We are well positioned to continue growing, as we focus on building a steady, well diversified bank.”
The Company’s net interest margin improved 10 basis points to 3.97% in the first quarter of 2019, compared to 3.87% in the preceding quarter and improved 23 basis points when compared to 3.74% in the first quarter of 2018.
First quarter net interest income increased by 10.47% to $5.84 million, from $5.29 million in the first quarter of 2018, and increased by 2.65% when compared to $5.69 million in the fourth quarter of 2018. Total interest income increased by 12.47% to $7.60 million in the first quarter of 2019 from $6.76 million during the first quarter of 2018 and increased by 3.80% compared to $7.32 million in the preceding quarter. Total interest expense increased by 19.70% to $1.75 million in the first quarter of 2019, from $1.47 million during the same period in 2018, and increased 7.84% compared to $1.63 million in the preceding quarter, largely as a result of the increase in interest-bearing deposits.
Non-interest income was $845,490 in the first quarter of 2019, compared to $1.00 million in the first quarter a year ago. In the preceding quarter the Company reported non-interest income of ($567,806).
Non-interest expense decreased slightly to $4.88 million in the first quarter of 2019 compared to $4.93 million in the first quarter of 2018 and was up 5.45% compared to $4.62 million in the preceding quarter. Salaries and benefits, the largest component of non-interest expense, decreased by $107,102, or 3.38%, over the year ago period.
Balance Sheet Review
Total assets increased by 4.38% to $648.70 million at March 31, 2019 from $621.48 million at March 31, 2018 and increased 5.70% compared to $613.69 million at December 31, 2018. Cash and cash equivalents decreased to $31.92 million at March 31, 2019 from $42.30 million a year ago. Investment securities increased to $54.13 million at March 31, 2019 from $48.08 million a year ago.
Loans, net of allowance for loan losses, increased 5.22% to $527.41 million at quarter-end, compared to $501.22 million a year ago, and increased 4.61% compared to $504.16 million three months earlier.
Total deposits increased 5.11% to $535.04 million at March 31, 2019 compared to $509.04 million a year ago and increased 4.89% compared to $510.11 million at December 31, 2018. Non-interest-bearing deposits increased 25.09% to $110.40 million at March 31, 2019 from $88.26 million a year ago, and interest-bearing deposits increased moderately to $424.64 million at quarter-end from $420.79 million a year ago.
FHLB advances decreased to $25.27 million at March 31, 2019 from $38.16 million at March 31, 2018. Notes payable decreased to $11.94 million in the first quarter from $12.49 million over the same period a year ago.
Total stockholders’ equity increased 9.51% to $64.54 million at March 31, 2019 from $58.94 million at March 31, 2018 and increased 2.73% when compared to $62.83 million at December 31, 2018. Book value per common share increased to $66.19 at March 31, 2019 from $61.39 at March 31, 2018 and $64.43 million at December 31, 2018.
“We had net loan recoveries during the quarter, and as a result we recorded no provision for loan losses during the first quarter,” added Head. “This compares to a negative provision for loan losses of $750,000 in the preceding quarter and no provision for loan losses in the first quarter of 2018.” Net loan recoveries were $6,260 in the first quarter of 2019, compared with recoveries of $408,930 in the fourth quarter of 2018 and recoveries of $34,911 in the first quarter a year ago.
There were no non-performing loans on the books at March 31, 2019 or at December 31, 2018. At March 31, 2018, nonperforming loans totaled $145,405. Nonperforming assets decreased to $7.66 million at March 31, 2019 compared to $7.73 million at December 31, 2018 and $10.75 million at March 31, 2018. Total non-performing assets improved to 1.18% of total assets at March 31, 2019, compared to 1.26% of total assets three months earlier and 1.73% a year earlier.
The allowance for loan losses was $6.97 million, or 1.30% of total loans, at March 31, 2019 compared to $7.26 million, or 1.42% of total loans, at March 31, 2018.
The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio of 11.72%, Common equity tier 1 capital ratio of 13.30%, Tier 1 capital ratio of 13.30% and Total capital ratio of 14.55% at March 31, 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, Brinkley, and Rogers, 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.
Contact: Scott Sandlin 479-684-3754
|WHITE RIVER BANCSHARES COMPANY|
|CONSOLIDATED BALANCE SHEETS|
|March 31, 2019||December 31, 2018||March 31, 2018|
|Cash and due from banks||$||31,726,670||$||27,944,329||$||42,030,670|
|Federal funds sold||195,532||1,101,025||249,145|
|Total cash and cash equivalents||31,922,202||29,045,354||42,279,815|
|Loans held for sale||1,333,370||494,937||2,273,869|
|Loans, net of allowance for loan losses||527,408,940||504,160,307||501,223,918|
|Premises and equipment, net||16,874,523||8,532,146||8,340,470|
|Foreclosed assets held for sale||7,659,728||7,733,440||10,599,626|
|Accrued interest receivable||2,178,508||2,511,191||1,828,407|
|Deferred income taxes||2,394,267||2,539,052||2,124,142|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Demand deposits||- non-interest bearing||$||110,401,854||$||99,939,633||$||88,256,463|
|- interest bearing||135,542,375||131,535,024||121,118,517|
|Time deposits||- under $250M||166,639,935||168,979,360||182,902,779|
|- $250M and over||109,234,395||97,799,817||105,478,074|
|Federal Home Loan Bank advances||25,272,500||25,371,095||38,161,644|
|Accrued interest payable||614,848||587,056||565,036|
|Treasury stock, at cost||(49,888||)||(49,888||)||(49,888||)|
|Accumulated other comprehensive loss||(416,526||)||(820,498||)||(1,078,063||)|
|Total stockholders' equity||64,545,128||62,827,409||58,938,593|
|WHITE RIVER BANCSHARES COMPANY|
|CONSOLIDATED STATEMENTS OF INCOME|
|For The Three Months Ended|
|March 31, 2019||December 31, 2018||March 31, 2018|
|Loans, including fees||$||7,166,824||$||6,882,662||$||6,435,645|
|Federal funds sold and other||70,787||96,446||56,157|
|Total interest income||7,598,503||7,320,034||6,756,016|
|Federal Home Loan Bank advances||153,014||123,371||188,536|
|Federal funds purchased and other||17,290||225||8,879|
|Total interest expense||1,754,046||1,626,584||1,465,394|
|Net interest income||5,844,457||5,693,450||5,290,622|
|Provision for loan losses||-||(750,000||)||-|
|Net interest income after provision for loan losses||5,844,457||6,443,450||5,290,622|
|Service charges and fees on deposits||183,873||198,929||209,609|
|Wealth management fee income||409,459||494,996||418,144|
|Secondary market fee income||120,992||137,998||251,745|
|Loss on sales and write-downs of foreclosed assets||-||(2,150,000||)||(7,987||)|
|Total non-interest income||845,490||(567,806||)||1,004,042|
|Salaries and benefits||3,272,837||2,997,064||3,165,735|
|Occupancy and equipment||528,130||539,425||539,217|
|Marketing and business development||141,099||60,411||215,726|
|Total non-interest expense||4,876,370||4,624,346||4,928,197|
|Income before income taxes||1,813,577||1,251,298||1,366,467|
|Income tax provision||646,904||323,094||269,897|
|Basic earnings per common share||$||1.20||$||0.95||$||1.34|
|Diluted earnings per common share||$||1.20||$||0.95||$||1.14|
|WHITE RIVER BANCSHARES COMPANY|
|SELECTED FINANCIAL DATA||At Or For The Three Months Ended|
|UNAUDITED||March 31, 2019||December 31, 2018||March 31, 2018|
|Selected Financial Condition Data: End of Period Balances|
|Allowance for Loan Losses||6,972,107||6,965,847||7,256,970|
|Common Shareholders' Equity||64,545,128||62,827,409||50,413,916|
|Selected Financial Condition Data: Average Balances|
|Common Shareholders' Equity||63,335,288||61,605,063||49,421,183|
|Selected Operating Results:|
|Net Interest Income||5,844,457||5,693,450||5,290,622|
|Provision for Loan Losses||-||(750,000||)||-|
|Net Interest Income After Provision for Loan Losses||5,844,457||6,443,450||5,290,622|
|Income Before Income Taxes||1,813,577||1,251,298||1,366,467|
|Income Tax Provision||646,904||323,094||269,897|
|Basic Net Income per Common Share||$||1.20||$||0.95||$||1.34|
|Diluted Net Income per Common Share||1.20||0.95||1.14|
|Dividends Paid per Common Share||-||-||-|
|Book Value Per Common Share||66.19||64.43||61.39|
|Book Value Per Common Share-Diluted||66.19||64.43||61.33|
|Common Shares Outstanding||975,077||975,077||821,216|
|Diluted Common Shares Outstanding||975,216||975,079||960,077|
|Basic Weighted Average Common Shares Outstanding||975,077||975,077||821,216|
|Diluted Weighted Average Common Shares Outstanding||975,216||975,079||960,077|
|Return on Average Assets||0.76||%||0.61||%||0.74||%|
|Return on Average Common Shareholders' Equity||7.47||%||5.98||%||9.00||%|
|Average Common Shareholders' Equity to Average Assets||10.11||%||10.13||%||8.24||%|
|Net Interest Margin||3.97||%||3.87||%||3.74||%|
|Selected Asset Quality:|
|Net (Recoveries) Charge-offs||$||(6,260||)||$||(408,930||)||$||(34,911||)|
|Total Nonperforming Loans to Total Loans||0.00||%||0.00||%||0.03||%|
|Total Nonperforming Loans to Total Assets||0.00||%||0.00||%||0.02||%|
|Total Nonperforming Assets to Total Assets||1.18||%||1.26||%||1.73||%|
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