White River Bancshares Co. Earns $1.42 Million, or $1.42 Per Diluted Share, in Fourth Quarter 2022 and Earns $5.62 Million, or $5.64 Per Diluted Share for the Year; Highlighted By Strong Quarterly Loan and Deposit Growth
FAYETTEVILLE, Ark., Jan. 18, 2023 (GLOBE NEWSWIRE) — White River Bancshares Company (OTCQX: WRIV), (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today reported net income of $1.42 million, or $1.42 per dilute share, in the fourth quarter of 2022, compared to $1.50 million, or $1.50 per diluted share, in the fourth quarter of 2021. In the immediate prior quarter, the Company earned $1.33 million, or $1.34 per diluted share. For the full year 2022, net income was $5.62 million, or $5.64 per diluted share, compared to $7.05 million, or $7.23 per diluted share, in 2021. All financial results are unaudited.
“2022 was a transformational year for our Company,” said Gary Head, President and Chief Executive Officer. “We opened new markets in Harrison and Jonesboro earlier in the year, which are parts of our state that have been searching for a more personalized approach to its community banking needs. Later in the year, we opened Banco Sí! in downtown Rogers, a new division of our Company dedicated to serving the needs of our growing Hispanic and Latino population with a fully bilingual staff. This market expansion contributed to double digit loan and deposit growth for the year, which fueled our compelling results and strengthened our balance sheet. While these investments in market expansions impacted net income for the year, we were still able to achieve the second highest annual earnings in our Company’s history. Looking ahead, our plans for 2023 are to focus on expanding our presence in the markets we opened last year and improving our performance metrics.”
“A large part of our market growth strategy was to build out our deposit base to fund new loan activity with low cost deposits to reduce our reliance on borrowed funds. We continue to strengthen our core funding mix and, as a result, total deposits increased 11.6% compared to a year ago, with demand and non-interest bearing deposits representing 30.5% of total deposits and savings and interest bearing transaction accounts representing 40.5% of total deposits at year end,” said Scott Sandlin, Chief Strategy Officer. “New customer relationships are fueling the deposit growth and we expect that to continue as we grow into our new locations.”
Fourth Quarter 2022 Financial Highlights:
- Fourth quarter net income was $1.42 million, or $1.42 per diluted share, compared to $1.50 million, or $1.50 per diluted share, in the fourth quarter of 2021.
- Fourth quarter net interest margin (“NIM”) expanded 14 basis points to 3.80%, compared to 3.66% in the fourth quarter a year ago.
- Annualized return on average assets was 0.58%, compared to 0.70% in the fourth quarter a year ago.
- Annualized return on average equity was 7.49%, unchanged from the fourth quarter a year ago.
- The Company recorded a $350,000 provision for loan losses in the fourth quarter of 2022, compared to no provision for loan losses in the fourth quarter of 2021.
- Net loans increased 20.6% to $826.7 million at December 31, 2022, compared to $685.4 million at December 31, 2021.
- Total deposits increased 11.6% to $810.6 million at December 31, 2022, compared to $726.2 million a year ago.
- Nonperforming assets totaled $124,000, or 0.01% of total assets at December 31, 2022, compared to $932,000, or 0.03% of total assets, at December 31, 2021.
- Book value per common share was $77.64 at December 31, 2022, from $80.77 a year ago.
- Total risk-based capital ratio was 13.16% and the Tier 1 leverage ratio was 10.88% for the Bank at December 31, 2022.
- The Company paid a $1.00 per share annual cash dividend on August 31, 2022 to shareholders of record at the close of business on July 20, 2022.
Income Statement
The Company’s NIM expanded 14 basis points to 3.80% in the fourth quarter of 2022, compared to 3.66% in the fourth quarter of 2021. In the third quarter of 2022, the Company’s NIM was 3.88%. For the year 2022, the NIM improved 12 basis points to 3.83%, compared to 3.71% in 2021.
“The changes we made in our investments and funding mix over the last several quarters, augmented by the Fed rate increases, resulted in net interest margin expansion during the fourth quarter compared to the fourth quarter a year ago,” said Brant Ward, Chief Operating Officer. “However, fourth quarter NIM contracted slightly from the third quarter due to a modest increase in funding costs.”
Net interest income increased 18.9% to $8.8 million, compared to $7.4 million in the fourth quarter of 2021. Total interest income increased 33.6% to $11.2 million in the fourth quarter of 2022, compared to $8.4 million in the fourth quarter of 2021. Total interest expense increased to $2.4 million in the fourth quarter of 2022, from $986,000 during the fourth quarter of 2021. For the year 2022, net interest income increased 16.3% to $32.9 million, compared to $28.3 million in 2021.
Noninterest income decreased 17.9% to $1.3 million in the fourth quarter of 2022, compared to $1.5 million in the fourth quarter a year ago. Substantially lower secondary market fee income, and to a lesser extent lower wealth management fee income due to volatility in the stock market contributed to the decline during the fourth quarter of 2022. For the year 2022, noninterest income decreased 15.9% to $5.5 million, compared to $6.6 million in 2021.
Noninterest expense increased to $7.8 million in the fourth quarter of 2022, compared to $6.9 million in the fourth quarter of 2021. Costs associated with the two new markets, higher commissions due to increased revenues in business lines, and an increase in salaries and employee benefits due to wage competition contributed to the increase during the fourth quarter of 2022, compared to the fourth quarter a year ago. For the year, noninterest expense increased to $30.1 million, compared to $25.3 million in 2021.
Balance Sheet
Total assets increased 15.4% to $982.7 million at December 31, 2022, from $852.0 million at December 31, 2021, and increased 5.1% compared to $935.0 million at September 30, 2022. Cash and cash equivalents decreased to $11.8 million at December 31, 2022 from $45.9 million a year ago and decreased when compared to $16.5 million at September 30, 2022. Investment securities increased 17.2% to $94.4 million at December 31, 2022, from $80.6 million a year ago, as the Company continued to move cash balances into better yielding investment securities during the quarter.
Loans, net of allowance for loan losses, increased 20.6% to $826.7 million at December 31, 2022, compared to $685.4 million a year ago, and increased 5.9% compared to $780.5 million three months earlier.
“Loan growth was solid during the quarter, increasing $46.3 million over the three-month period, and the loan pipeline remains strong,” said Jeff Maland, Chief Risk Officer.
Total deposits increased 11.6% to $810.6 million at December 31, 2022, compared to $726.2 million a year ago and increased 2.4% compared to $791.5 million at September 30, 2022. New customer relationships continue to account for a majority of the deposit growth year-over-year.
FHLB advances increased during the quarter to $31.7 million at December 31, 2022, from $12.3 million at December 31, 2021. Total stockholders’ equity was $77.5 million at December 31, 2022, compared to $80.2 million at December 31, 2021, and $75.4 million at September 30, 2022. Tangible book value per common share was $77.64 at December 31, 2022, from $80.77 at December 31, 2021, and $75.73 at September 30, 2022. The decrease in total stockholders’ equity and tangible book value per share during the current quarter compared to the year ago was primarily due to a $8.3 million decrease in accumulated other comprehensive income (“AOCI”) related primarily to an increase in the unrealized loss on available for sale securities reflecting the increase in interest rates during the current quarter. Excluding AOCI, tangible book value per share was $88.64 at December 31, 2022.
Credit Quality
“Our asset quality remains strong, and we continue to focus on maintaining a moderate risk profile,” said Maland. “We recorded a $350,000 provision for loan losses due to the extraordinary levels of loan growth during the fourth quarter. This compared to a $410,000 provision for loan losses in the third quarter of 2022, and no provision for loan losses in the fourth quarter of 2021.”
Nonperforming loans totaled $124,000 at December 31, 2022. This compared to $153,000 in nonperforming loans at September 30, 2022, and $221,000 in nonperforming loans at December 31, 2021. Nonperforming assets were $123,000 at December 31, 2022, compared to $153,000 at September 30, 2022, and $932,000 at December 31, 2021. Total nonperforming assets were 0.01% of total assets at December 31, 2022, compared to 0.02% at September 30, 2022, and 0.11% at December 31, 2021.
The allowance for loan losses was $9.2 million, or 1.10% of total loans, at December 31, 2022, compared to $8.2 million, or 1.18% of total loans, at December 31, 2021. Net loan recoveries were $105,000 in the fourth quarter of 2022, compared to net loan recoveries of $43,000 in the third quarter of 2022, and net loan charge-offs of $394,000 in the fourth quarter of 2021.
Capital
The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Total risk based capital ratio estimate of 13.16%, Common equity Tier 1 capital ratio of 12.13%, Tier 1 risk-based capital ratio of 12.13% and Tier 1 leverage ratio of 10.88%, at December 31, 2022.
On July 13, 2022, the Company issued $15 million in subordinated notes to certain qualified institutional accredited investors through a private placement offering. The Company intends to use the net proceeds from the offering to down stream capital to the bank for growth and for general corporate purposes.
Recent Developments
The Company launched a new market, Banco Sí, to focus on and serve the Latino community, which is a growing segment of the population. This new market was formed as a division of Signature Bank of Arkansas during the third quarter of 2022, and its initial market location opened in downtown Rogers in a historic building at 114 S. First St.
“The Latino community has grown to become the largest minority community in the region and the United States, and we believe it is underserved,” said Ward. “Our mission is to create economic growth and access to banking services, capital, and funds for small and midsize businesses. To help us accelerate our outreach and engagement of this growing community and to grow our capability to better serve them, we employed bilingual staff and invested in multicultural inclusion training for our leadership and staff.”
During the first quarter of 2022, the Company opened its seventh market, located at 111 East Jackson Avenue in Jonesboro. This facility will serve as a temporary location for the market and marks the Company’s entry into Craighead County. According to the 2020 Census, Jonesboro had a population of 78,576 and is the fifth-largest city in Arkansas.
During the fourth quarter of 2021, the Company opened its sixth market, located in Harrison in the Durand Center at 303 N. Main Street, Suite 100. Harrison, located in the heart of the Ozark Mountains, is nationally recognized as one of the “Best Small Towns in America” and was previously featured in Where to Retire Magazine as one of the best retirement towns in the United States. https://www.cityofharrison.com/
About White River Bancshares Company
White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas, headquartered in Fayetteville, Arkansas. The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers, Brinkley, Harrison and Jonesboro, 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), trades on the OTCQX® Best Market.
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.
Recently, the Company has expanded into Northeast Arkansas, with new markets in Jonesboro and Harrison. Jonesboro, located in Craighead County, is a city located on Crowley’s Ridge in the northeastern corner of Arkansas. It is the home of Arkansas State University and the cultural and economic center of Northeast Arkansas. Jonesboro also houses the region’s hospital network. U.S. Steel Corp. announced in January 2022 that it would locate a new $3 billion steel factory in Northeast Arkansas in Osceola, a move expected to create 900 jobs with an average pay over $100,000 annually, making it the largest capital investment project in Arkansas history. Dubbed “Project Blueprint,” the steel mill will begin construction in early 2022. Harrison sits below Branson, Missouri, which is a family tourist destination and outdoor recreation, and is well known as an entertainment destination.
The Company currently operates two markets in Washington County, two markets in Benton County, two markets in Monroe County, one market in Boone County and one market in Craighead County.
The housing market in Washington and Benton counties remains robust. According to the Northwest Multiple Listing Service, the average home in Washington County sold for $381,000, up 15.7% in November 2022, compared to a year ago, with an average of 93 days on the market. For Benton County, the average house sold for $396,000, up 18.2% from a year ago with an average of 88 days on the market.
Washington County’s population is projected to grow 5.96% from 2023 through 2028, and median household income is projected to increase by 11.12% during the same time frame. Benton County’s population is projected to grow 8.05% from 2023 through 2028, and median household income is projected to increase by 11.31%. Monroe County’s population is projected to decrease by 6.07% from 2023 through 2028 and median household income is projected to increase by 15.34%. Boone County’s population is projected to grow 1.66% from 2023 through 2028 and median household income is projected to increase by 13.62%. Craighead County’s population is projected to grow 4.40% from 2023 through 2028, and the median household income is projected to increase by 17.69%.
Sources:
http://www.nwarealtors.org/market-statistics/
https://www.capitaliq.spglobal.com/
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 | ||||||||||||
| (Unaudited) | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | ||||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | $ | 11,835,438 | $ | 16,452,466 | $ | 45,924,111 | ||||||
| Investment securities | 94,429,007 | 95,169,822 | 80,596,752 | |||||||||
| Loans held for sale | – | 1,682,618 | 2,737,798 | |||||||||
| Loans, net of allowance for loan losses | 826,738,234 | 780,452,305 | 685,383,789 | |||||||||
| Premises and equipment, net | 28,555,250 | 28,317,468 | 26,902,610 | |||||||||
| Foreclosed assets held for sale | – | – | 711,100 | |||||||||
| Accrued interest receivable | 3,111,863 | 2,804,238 | 2,451,610 | |||||||||
| Bank owned life insurance (“BOLI”) | 9,134,324 | 1,058,617 | 1,053,068 | |||||||||
| Deferred income taxes | 4,282,651 | 4,631,813 | 1,967,775 | |||||||||
| Other investments | 3,251,098 | 3,226,173 | 2,826,485 | |||||||||
| Other assets | 1,413,549 | 1,155,722 | 1,400,708 | |||||||||
| Total Assets | $ | 982,751,414 | $ | 934,951,242 | $ | 851,955,806 | ||||||
| LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Demand and non-interest-bearing | $ | 246,960,916 | $ | 257,288,208 | $ | 231,800,711 | ||||||
| Savings and interest-bearing transaction accounts | 328,108,850 | 354,185,035 | 310,535,802 | |||||||||
| Time deposits | 235,513,697 | 179,985,925 | 183,849,227 | |||||||||
| Total deposits | 810,583,463 | 791,459,168 | 726,185,740 | |||||||||
| Federal funds purchased | 18,150,000 | – | – | |||||||||
| Federal Home Loan Bank advances | 31,686,052 | 22,769,235 | 12,264,849 | |||||||||
| Notes payable | 25,402,941 | 25,385,663 | 10,798,035 | |||||||||
| Accrued interest payable | 912,615 | 505,504 | 175,835 | |||||||||
| Other liabilities | 18,547,205 | 19,477,404 | 22,378,553 | |||||||||
| Total Liabilities | 905,282,276 | 859,596,974 | 771,803,012 | |||||||||
| Stockholders’ equity: | ||||||||||||
| Common stock | 10,084 | 10,039 | 10,072 | |||||||||
| Surplus | 89,665,389 | 89,416,483 | 88,475,229 | |||||||||
| Accumulated deficit | (3,287,098 | ) | (4,708,340 | ) | (7,907,902 | ) | ||||||
| Treasury stock, at cost | (711,111 | ) | (563,441 | ) | (563,128 | ) | ||||||
| Accumulated other comprehensive (loss) income | (8,208,126 | ) | (8,800,473 | ) | 138,523 | |||||||
| Total stockholders’ equity | 77,469,138 | 75,354,268 | 80,152,794 | |||||||||
| Total Liabilities and Stockholders’ Equity | $ | 982,751,414 | $ | 934,951,242 | $ | 851,955,806 | ||||||
| WHITE RIVER BANCSHARES COMPANY | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Unaudited) | ||||||||||||
| For the Three Months Ended | ||||||||||||
| December 31, | September 30, | December 31, | ||||||||||
| 2022 | 2022 | 2021 | ||||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 10,474,093 | $ | 9,067,631 | $ | 7,997,979 | ||||||
| Investment securities | 618,676 | 574,963 | 365,232 | |||||||||
| Federal funds sold and other | 101,035 | 129,443 | 12,300 | |||||||||
| Total interest income | 11,193,804 | 9,772,037 | 8,375,511 | |||||||||
| Interest expense: | ||||||||||||
| Deposits | 1,654,667 | 781,647 | 734,370 | |||||||||
| Federal Home Loan Bank advances | 300,424 | 70,336 | 83,504 | |||||||||
| Notes payable | 394,465 | 362,254 | 167,874 | |||||||||
| Federal funds purchased and other | 56,193 | 7,603 | – | |||||||||
| Total interest expense | 2,405,749 | 1,221,840 | 985,748 | |||||||||
| Net interest income | 8,788,055 | 8,550,197 | 7,389,763 | |||||||||
| Provision for loan losses | 350,000 | 410,000 | – | |||||||||
| Net interest income after provision for loan losses | 8,438,055 | 8,140,197 | 7,389,763 | |||||||||
| Non-interest income: | ||||||||||||
| Service charges and fees on deposits | 144,208 | 136,156 | 133,424 | |||||||||
| Wealth management fee income | 559,674 | 559,358 | 584,577 | |||||||||
| Secondary market fee income | 84,303 | 231,012 | 668,751 | |||||||||
| Bank owned life insurance income | 75,707 | 1,822 | 2,345 | |||||||||
| Loss on sales and write-downs of foreclosed assets | – | – | (194,831 | ) | ||||||||
| Other non-interest income | 389,814 | 440,569 | 333,219 | |||||||||
| Total non-interest income | 1,253,706 | 1,368,917 | 1,527,485 | |||||||||
| Non-interest expense: | ||||||||||||
| Salaries and benefits | 4,877,480 | 5,009,832 | 4,684,822 | |||||||||
| Occupancy and equipment | 901,551 | 886,450 | 708,879 | |||||||||
| Data processing | 609,252 | 577,219 | 462,838 | |||||||||
| Marketing and business development | 380,481 | 320,613 | 328,585 | |||||||||
| Professional services | 517,852 | 533,614 | 396,947 | |||||||||
| Other non-interest expense | 552,265 | 320,179 | 291,099 | |||||||||
| Total non-interest expense | 7,838,881 | 7,647,907 | 6,873,170 | |||||||||
| Income before income taxes | 1,852,880 | 1,861,207 | 2,044,078 | |||||||||
| Income tax provision | 431,638 | 526,576 | 548,710 | |||||||||
| Net income | $ | 1,421,242 | $ | 1,334,631 | $ | 1,495,368 | ||||||
| Earnings per share: | ||||||||||||
| Basic | $ | 1.42 | $ | 1.34 | $ | 1.51 | ||||||
| Diluted | $ | 1.42 | $ | 1.34 | $ | 1.50 | ||||||
| WHITE RIVER BANCSHARES COMPANY | ||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| (Unaudited) | ||||||||
| Twelve Months Ended | ||||||||
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| Interest income: | ||||||||
| Loans, including fees | $ | 35,863,945 | $ | 31,270,541 | ||||
| Investment securities | 2,018,974 | 1,464,323 | ||||||
| Federal funds sold and other | 378,268 | 33,155 | ||||||
| Total interest income | 38,261,187 | 32,768,019 | ||||||
| Interest expense: | ||||||||
| Deposits | 3,739,902 | 3,435,404 | ||||||
| Federal Home Loan Bank advances | 496,148 | 389,540 | ||||||
| Notes payable | 1,092,467 | 671,496 | ||||||
| Federal funds purchased and other | 63,796 | 2,242 | ||||||
| Total interest expense | 5,392,313 | 4,498,682 | ||||||
| Net interest income | 32,868,874 | 28,269,337 | ||||||
| Provision for loan losses | 760,000 | – | ||||||
| Net interest income after provision for loan losses | 32,108,874 | 28,269,337 | ||||||
| Non-interest income: | ||||||||
| Service charges and fees on deposits | 533,910 | 516,836 | ||||||
| Wealth management fee income | 2,376,325 | 2,225,782 | ||||||
| Secondary market fee income | 1,114,915 | 2,954,448 | ||||||
| Bank owned life insurance income | 81,256 | 9,537 | ||||||
| Loss on sales and write-downs of foreclosed assets | (151,480 | ) | (194,831 | ) | ||||
| Other non-interest income | 1,584,852 | 1,076,433 | ||||||
| Total non-interest income | 5,539,778 | 6,588,205 | ||||||
| Non-interest expense: | ||||||||
| Salaries and benefits | 19,460,554 | 16,659,978 | ||||||
| Occupancy and equipment | 3,366,093 | 2,723,315 | ||||||
| Data processing | 2,444,067 | 1,824,468 | ||||||
| Marketing and business development | 1,373,196 | 788,477 | ||||||
| Professional services | 1,936,620 | 2,098,437 | ||||||
| Other non-interest expense | 1,541,468 | 1,250,652 | ||||||
| Total non-interest expense | 30,121,998 | 25,345,327 | ||||||
| Income before income taxes | 7,526,654 | 9,512,215 | ||||||
| Income tax provision | 1,910,853 | 2,461,392 | ||||||
| Net income | $ | 5,615,801 | $ | 7,050,823 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 5.64 | $ | 7.23 | ||||
| Diluted | $ | 5.64 | $ | 7.23 | ||||
| WHITE RIVER BANCSHARES COMPANY | ||||||||||||||||
| SUPPLEMENTAL INFORMATION | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Year ended | |||||||||||||||
| December 31, | September 30, | December 31, | December 31, | |||||||||||||
| 2022 | 2022 | 2021 | 2021 | |||||||||||||
| Earnings per share: | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net income available to common shareholders’ | $ | 1,421,242 | $ | 1,334,631 | $ | 1,495,368 | $ | 7,050,823 | ||||||||
| Denominator: | ||||||||||||||||
| Weighted average common shares outstanding | 997,686 | 994,996 | 992,965 | 975,058 | ||||||||||||
| Effect of dilutive securities: | ||||||||||||||||
| Stock options | 1,051 | 691 | 1,539 | – | ||||||||||||
| Weighted average common shares | ||||||||||||||||
| outstanding – assuming dilution | $ | 998,737 | $ | 995,687 | $ | 994,504 | $ | 975,058 | ||||||||
| Basic earnings per common share | $ | 1.42 | $ | 1.34 | $ | 1.51 | $ | 7.23 | ||||||||
| Diluted earnings per common share | $ | 1.42 | $ | 1.34 | $ | 1.50 | $ | 7.23 | ||||||||
| Profitability: | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net income | $ | 1,421,242 | $ | 1,334,631 | $ | 1,495,368 | $ | 7,050,823 | ||||||||
| Denominator: | ||||||||||||||||
| Average total assets for period | 980,111,912 | 908,692,882 | 849,391,347 | 806,437,028 | ||||||||||||
| Average total equity for period | 75,320,820 | 77,112,599 | 79,246,635 | 77,002,249 | ||||||||||||
| Return on average assets | 0.58 | % | 0.58 | % | 0.70 | % | 0.87 | % | ||||||||
| Return on average equity | 7.49 | % | 6.87 | % | 7.49 | % | 9.16 | % | ||||||||
| Efficiency Ratio: | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net interest income | $ | 8,788,055 | $ | 8,550,197 | $ | 7,389,763 | $ | 28,269,337 | ||||||||
| Non-interest income | 1,253,706 | 1,368,917 | 1,527,485 | 6,588,205 | ||||||||||||
| Total Income | $ | 10,041,761 | $ | 9,919,114 | $ | 8,917,248 | $ | 34,857,542 | ||||||||
| Denominator: | ||||||||||||||||
| Non-interest expense | $ | 7,838,881 | $ | 7,647,907 | $ | 6,873,170 | $ | 25,345,327 | ||||||||
| Efficiency ratio | 78.06 | % | 77.10 | % | 77.08 | % | 72.71 | % | ||||||||
| December 31, | September 30, | December 31, | December 31, | |||||||||||||
| 2022 | 2022 | 2021 | 2021 | |||||||||||||
| Asset Quality: | ||||||||||||||||
| Net (recoveries) charge-offs | $ | (105,153 | ) | $ | (43,488 | ) | $ | 393,795 | $ | 461,663 | ||||||
| Classified assets | 393,189 | 411,636 | 5,434,111 | 5,434,111 | ||||||||||||
| Nonperforming loans | 123,922 | 153,362 | 220,616 | 220,616 | ||||||||||||
| Nonperforming assets | 123,922 | 153,362 | 932,326 | 932,326 | ||||||||||||
| Total nonperforming loans to total loans | 0.01 | % | 0.02 | % | 0.03 | % | 0.03 | % | ||||||||
| Total nonperforming loans to total assets | 0.01 | % | 0.02 | % | 0.03 | % | 0.03 | % | ||||||||
| Total nonperforming assets to total assets | 0.01 | % | 0.02 | % | 0.11 | % | 0.11 | % | ||||||||
| WHITE RIVER BANCSHARES COMPANY | ||||||||||||||||||
| INTEREST INCOME AND EXPENSE | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Federal funds sold and other | $ | 9,543,812 | $ | 101,035 | 4.20 | % | $ | 34,742,982 | $ | 12,300 | 0.14 | % | ||||||
| Investment securities | 96,613,992 | 618,676 | 2.54 | % | 86,453,958 | 365,232 | 1.68 | % | ||||||||||
| Loans receivable (1) | 814,261,408 | 10,474,093 | 5.10 | % | 690,968,859 | 7,997,979 | 4.59 | % | ||||||||||
| Total interest-earning assets | 920,419,212 | $ | 11,193,804 | 4.82 | % | 812,165,799 | $ | 8,375,511 | 4.09 | % | ||||||||
| Noninterest-earning assets | 59,692,700 | 37,225,548 | ||||||||||||||||
| Total assets | $ | 980,111,912 | $ | 849,391,347 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing deposits | $ | 558,052,737 | $ | 1,654,667 | 1.18 | % | $ | 477,926,717 | $ | 734,370 | 0.61 | % | ||||||
| FHLB advances and federal funds purchased | 43,158,724 | 356,617 | 3.28 | % | 15,674,909 | 83,504 | 2.11 | % | ||||||||||
| Notes payable | 25,395,116 | 394,465 | 6.16 | % | 10,795,496 | 167,874 | 6.17 | % | ||||||||||
| Total interest-bearing liabilities | 626,606,577 | $ | 2,405,749 | 1.52 | % | 504,397,122 | $ | 985,748 | 0.78 | % | ||||||||
| Noninterest-bearing liabilities | 278,184,515 | 265,747,590 | ||||||||||||||||
| Total liabilities | 904,791,092 | 770,144,712 | ||||||||||||||||
| Stockholders’ equity | 75,320,820 | 79,246,635 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 980,111,912 | $ | 849,391,347 | ||||||||||||||
| Net interest-earning assets | $ | 293,812,635 | $ | 307,768,677 | ||||||||||||||
| Net interest spread | $ | 8,788,055 | 3.30 | % | $ | 7,389,763 | 3.32 | % | ||||||||||
| Net interest margin | 3.79 | % | 3.61 | % | ||||||||||||||
| (1) | Origination fee income and costs are generally recognized in earnings when incurred which, in our opinion does not produce results that differ materially from recognizing the fees and costs over the life of the loan as required by GAAP. | |||||||||||||||||
| WHITE RIVER BANCSHARES COMPANY | ||||||||||||||||||
| INTEREST INCOME AND EXPENSE | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||||||
| 2022 | 2021 | |||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||
| Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | |||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Federal funds sold and other | $ | 36,557,767 | $ | 378,268 | 1.03 | % | $ | 30,064,184 | $ | 33,155 | 0.11 | % | ||||||
| Investment securities | 92,326,033 | 2,018,974 | 2.19 | % | 82,290,111 | 1,464,323 | 1.78 | % | ||||||||||
| Loans receivable (1) | 732,179,484 | 35,863,945 | 4.90 | % | 661,460,761 | 31,270,541 | 4.73 | % | ||||||||||
| Total interest-earning assets | 861,063,284 | $ | 38,261,187 | 4.44 | % | 773,815,056 | $ | 32,768,019 | 4.23 | % | ||||||||
| Noninterest-earning assets | 50,087,853 | 32,828,999 | ||||||||||||||||
| Total assets | $ | 911,151,137 | $ | 806,644,055 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Interest-bearing deposits | $ | 522,249,813 | $ | 3,739,902 | 0.72 | % | $ | 477,264,565 | $ | 3,435,404 | 0.72 | % | ||||||
| FHLB advances and federal funds purchased | 19,943,714 | 559,944 | 2.81 | % | 18,024,528 | 391,782 | 2.17 | % | ||||||||||
| Notes payable | 17,199,936 | 1,092,467 | 6.35 | % | 10,785,400 | 671,496 | 6.23 | % | ||||||||||
| Total interest-bearing liabilities | 559,393,463 | $ | 5,392,313 | 0.96 | % | 506,074,493 | $ | 4,498,682 | 0.89 | % | ||||||||
| Noninterest-bearing liabilities | 274,438,527 | 223,567,313 | ||||||||||||||||
| Total liabilities | 833,831,990 | 729,641,806 | ||||||||||||||||
| Stockholders’ equity | 77,319,147 | 77,002,249 | ||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 911,151,137 | $ | 806,644,055 | ||||||||||||||
| Net interest-earning assets | $ | 301,669,821 | $ | 267,740,563 | ||||||||||||||
| Net interest spread | $ | 32,868,874 | 3.48 | % | $ | 28,269,337 | 3.35 | % | ||||||||||
| Net interest margin | 3.82 | % | 3.65 | % | ||||||||||||||
| (1) | Origination fee income and costs are generally recognized in earnings when incurred which, in our opinion does not produce results that differ materially from recognizing the fees and costs over the life of the loan as required by GAAP. | |||||||||||||||||
Contact:
Scott Sandlin
Chief Strategy Officer
479-684-3754
