UPDATE: SVB&T Corporation, Parent Company of Springs Valley Bank & Trust Company, Declares Quarterly Dividend and Announces Continued Record Profits for 2018

This press release replaces the press release disseminated January 28, 2019 at 4:30PM ET. The press release did not contain the financial tables.

JASPER, IN / ACCESSWIRE / January 31, 2019 / SVB&T Corporation (OTCQX: SVBT), the parent company of Springs Valley Bank & Trust Company, has announced that the Corporation will transition from an annual to a quarterly dividend payout structure and will pay a quarterly cash dividend of $0.25 per share to all shareholders of record as of March 15, 2019, payable on or about April 15, 2019. This is a 5.26% annualized increase over the annual dividend paid in December 2018.

The book value of SVB&T Corporation’s stock was $72.71 per share as of December 31, 2018. The last reported trade of stock at the close of business on January 24, 2019 was $79.60 per share, and the number of outstanding shares was 559,136 as of the same date.

Net Income for the year ended December 31, 2018 increased by $696,000 or 20.16% to $4.1 million ($7.42 per diluted common share) over the same period in 2017. Total Interest Income for the year was $16.8 million, or 13.75% over the same period 2017. Total Interest Expense for the year was $3.9 million, or 50.51% over the same period 2017. Although the rising rate environment supported higher yields on SVB&T Corporation’s asset portfolio and the Corporation experienced healthy growth in its loan assets, the uptick in interest income was partially offset by the increase in SVB&T’s cost of funds resulting from both deposit base and borrowings. With regard to borrowings, $134,000 of the increase in Total Interest Expense resulted from the subordinated debt issuance in August of 2018. This resulted in Net Interest Income of $12.9 million, which was an increase of $731,000 or 6.01% over the same period 2017.

The 2017 Tax Cuts and Jobs Act reduced SVB&T Corporation’s 2018 federal corporate income tax rate from 34% to 21%. Federal income tax expense was $743,000 on taxable income of $4.9 million for the twelve month period ended December 31, 2018, compared to federal income tax expense of $1.1 million on taxable income of $4.6 million for the twelve month period ended December 31, 2017. The decrease in federal income tax expense accounted for approximately 53.02% of the $696,000 increase in Net Income from 2017 to 2018.

SVB&T Corporation ended the year with $305.9 million in Loans Net of Allowance for Loan Losses, a 7.26% increase over the balance at December 31, 2017. Total Deposits ended the year at $331.9 million, a 5.34% increase over Total Deposits as of December 31, 2017. Stockholder’s Equity ended the year at $40.7 million, an 8.74% increase over Stockholder’s Equity as of December 31, 2017.

Return on Average Assets (ROAA), Return on Average Equity (ROAE) and Capital Ratio remain very strong. This translates to 2018 ROAA of 1.05%, ROAE of 10.74% and Tangible Capital Ratio of 10.14%. Comparatively, SVB&T’s 2017 ROAA was 0.94%, ROAE was 9.53% and Tangible Capital Ratio was 9.82%.

For the 4th quarter of 2018, SVB&T Corporation saw earnings of $1.0 million increase by 22.04% over 4th quarter 2017. Total Interest Income of $4.4 million, or 15.43% over the same period 2017, was partially offset by increasing cost of funds as Total Interest Expense for the period was $1.1 million, or 57.30% over the same period 2017. This resulted in Net Interest Income of $3.3 million, which was an increase of $181,000 or 5.83% over the same period 2017.

Management and the Board are pleased with the operating results the Bank generated for the year despite continuing margin pressure from a rising interest rate environment. “2018 marks the 7th consecutive year of record financial performance (2012-2018) in the history of the 116-year old company,” stated President & CEO Jamie Shinabarger, adding, “All the favorable aforementioned performance metrics are great, but without a more visible, easy to use stock buy-sell platform, converting this performance to shareholder value would be challenging to say the least. SVB&T Corporation joining the OTCQX Market in mid-2018 was a major strategic move in pursuit of liquidity and shareholder value.” For the twelve month period ending December 31, 2018, the total return to shareholders was 22.64% (calculated by subtracting the December 31, 2017 book value of $65.23 from the closing market value on the OTCQX exchange at December 31, 2018 of $79.05, representing $13.82 per share in appreciation. In addition to appreciation, with a dividend of $0.95, a total dollar return equivalent over the period was $14.77 per share).

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, including 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. More information can be found online at
www.svbt.bank. The company’s stock is traded on the OTCQX trading platform under ticker symbol SVBT (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.

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-Dec

2018

2017

Assets

Cash
and Due From Banks

$
8,932

$
9,204

Interest Bearing Time Deposits

1,175

2,930

Fed
Funds Sold

7,068

9,366

Available for Sale Securities

55,644

51,678

Other
Investments

2,236

2,169

Loans
held for sale

150

707

Loans
net of allowance for loan losses

305,879

285,163

Premises and Equipment

5,273

5,521

Bank-owned Life Insurance

8,052

7,877

Accrued Interest Receivable

1,824

1,629

Foreclosed Assets Held for Sale

Other
Assets

4,663

4,523

Total Assets

400,954

380,832

Liabilities and Stockholders Equity

Non-interest bearling deposits

52,178

61,032

Interest bearing deposits

279,676

254,011

Borrowed Funds

19,710

24,149

Subordinated Debentures

5,000

Accrued interest payable and other liabilities

3,738

4,255

Total Liabilities

360,302

343,447

Stockholders’ equity – substantially restricted

40,652

37,385

Total Liabilities and Shareholders’
Equity

400,954

380,832

Three Months Ended

Twelve Months Ended

31-Dec

2018

2017

2018

2017

Operating Data:

Interest & Dividend Income

$
4,407

$
3,818

$
16,761

$
14,735

Interest Expense

1,120

712

3,859

2,564

Net Interest Income

$
3,287

$
3,106

$
12,902

$
12,171

Provision for Loan Loss

751

523

Net Interest Income after Provision for Loan Losses

$
3,205

$
3,106

$
12,151

$
11,648

Fiduciary activitities

688

718

2,901

2,900

Customer service fees

342

324

1,292

1,078

Increase in cash surender value of life insurance

174

178

Other
income

154

184

822

675

Total noninterest income

1,228

1,271

5,189

4,831

Salary & employee benefits

1,889

1,956

7,002

7,066

Occupancy

353

376

1,460

1,430

Data
processing

281

237

1,208

999

Deposit insurance premium

138

133

Professional fees

199

213

877

579

Other
expenses

475

480

1,763

1,707

Total noninterest expense

3,227

3,299

12,448

11,914

Income before Income Taxes

1,206

1,078

4,892

4,565

Income Tax Expense

176

234

743

1,112

Net
Income

$
1,030

$
844

$
4,149

$
3,453

Shares Outstanding

559,136

558,689

559,136

562,184

Average Shares – Basic

559,044

558,689

558,903

562,184

Average Shares – Diluted

559,136

562,649

Basic
Earnings per Share

$
1.84

$
1.52

$
7.42

$
6.14

Diluted Earnings per Share

$
1.84

$
1.52

$
7.42

$
6.13

Other
Data:

Yield
on all Interest-earning Average Assets

4.47
%

4.23
%

4.26
%

4.25
%

Cost
on all Interest-bearing Average Liabilities

1.29
%

0.73
%

0.94
%

0.71
%

Interest Rate Spread

3.18
%

3.50
%

3.32
%

3.54
%

Net
Interest Margin

3.44
%

3.66
%

3.51
%

3.70
%

Number of Full Service Banking Centers

Return on Average Assets (net income divided by average total assets)

1.02
%

0.90
%

1.05
%

0.94
%

Average Assets

$
402,346

$
376,712

$
395,942

$
368,526

Return on Average Equity (net income divided by average total equity)

10.43
%

9.15
%

10.74
%

9.53
%

Average Equity

$
39,522

$
37,043

$
38,629

$
36,212

Equity to Assets Ratio (EOP)

10.14
%

9.82
%

10.14
%

9.82
%

Book
Value per Share

N/A

$
72.71

$
66.92

Market Value per Share as of December 31, 2018 Close

N/A

$
79.05

N/A

SOURCE: SVB&T Corporation

ReleaseID: 534122

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