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