SVB&T Corporation, Parent Company of Springs Valley Bank & Trust Company, Reports 2020 First Quarter Unaudited Earnings

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

ReleaseID: 587771