FAYETTEVILLE, Ark., May 06, 2020 (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 $742,500, or $0.77 per diluted share, in the first quarter of 2020, compared to $1.13 million, or $1.17 per diluted share, in the fourth quarter of 2019 and $1.17 million, or $1.20 per diluted share, in the first quarter of 2019. 

“Our first quarter results were highlighted by the sale of multiple properties, reducing nonperforming assets by 43% compared to three months earlier and bringing NPAs to their lowest levels in years,” said Gary Head, President and Chief Executive Officer.  “However, we are being proactive in our approach to COVID-19’s impact on our local economy, and as a result booked a $677,000 provision during the first quarter, which compares to a $500,000 provision during the preceding quarter and no provision in the first quarter a year ago.

“Amid ongoing concerns about COVID-19, we are closely monitoring the latest reports from the Centers for Disease Control (CDC) and have taken a number of precautionary measures for the health and safety of our customers and colleagues,” Head continued.  “In mid-March, we were the first bank in Arkansas to begin limiting lobby access at branches to help reduce the spread of COVID-19.  As the month progressed, we implemented measures to mobilize our bankers to work from home as much as possible.  We began taking applications for the Small Business Administration’s Paycheck Protection Program (PPP), marking the Bank’s first foray into SBA lending. The result was approximately $20 million dollars lent to 232 businesses, preserving roughly 2,389 jobs for Arkansans.  We also have seen a significant increase in use of our treasury services, empowering our customer through the use of our digital and mobile banking products.  We continue to closely monitor the situation and evaluate additional measures to support our customers and communities as needs arise.” 

First Quarter 2020 Financial Highlights:

• First quarter net income was $742,500 or $0.77 per diluted share.
• First quarter provision for loan losses was $677,000, compared to $500,000 in the preceding quarter and no provision for loan losses in the first quarter of 2019.
• First quarter net interest margin (“NIM”) was 3.64%, compared to 3.85% in the preceding quarter and 3.97% in the first quarter a year ago.
• Net loans increased 5.8% to $558.2 million at March 31, 2020, compared to $527.4 million at March 31, 2019.
• Total deposits increased 10.7% to $592.1 million at March 31, 2020, compared to $535.0 million a year ago.
• Non-interest-bearing deposits increased 8.1% to $119.4 million at March 31, 2020, compared to $110.4 million a year ago.
• Non-performing assets decreased 42.9% to $1.5 million at March 31, 2020, compared to $2.6 million at December 31, 2019 and decreased 80.2% when compared to $7.7 million a year ago.
• Nonperforming assets (NPAs) represent 0.21% of total assets at March 31, 2020, compared to 1.18% of total assets a year ago and 0.38% of total assets three months earlier. 
• Book value per diluted common share increased to $72.25 at March 31, 2020, from $66.19 a year ago.
• Total risk-based capital ratio was 14.24% and Tier 1 leverage ratio was 11.27% for the Bank at March 31, 2020.
• On December 11, 2019, the Company completed a private placement of $11 million in fixed-to-floating rate subordinated notes due December 31, 2029 to accredited institutional investors.

Income Statement

The Company’s net interest margin was 3.64% in the first quarter of 2020, compared to 3.85% in both the preceding quarter and 3.97% in the first quarter of 2019. 

First quarter net interest income increased by 2.7% to $6.0 million, from $5.8 million in the first quarter of 2019, and decreased 2.2% when compared to $6.1 million in the fourth quarter of 2019.  Total interest income increased by 7.6% to $8.2 million in the first quarter of 2020 from $7.6 million during the first quarter of 2019 and decreased by 1.4% compared to $8.3 million in the preceding quarter.  Total interest expense increased by 24.1% to $2.2 million in the first quarter of 2020, from $1.8 million during the first quarter of 2019, and remain unchanged compared to the preceding quarter.  The year over year increase was primarily due to the increase in interest-bearing deposits. 

Non-interest income totaled $1.1 million in the first quarter of 2020, compared to $1.3 million in the fourth quarter of 2019, and $845,500 in the first quarter of 2019. 

Non-interest expense was $5.4 million in the first quarter of 2020, which was unchanged compared to the fourth quarter of 2019.  In the first quarter of 2019, non-interest expense was $4.9 million.  

Balance Sheet Review

Total assets increased by 9.7% to $711.6 million at March 31, 2020, from $648.7 million at March 31, 2019, and increased 1.4% compared to $702.1 million at December 31, 2019.  Cash and cash equivalents increased to $53.3 million at March 31, 2020 from $31.9 million a year ago.  Investment securities increased to $64.2 million at March 31, 2020 from $54.1 million a year ago.

Loans, net of allowance for loan losses, increased 5.8% to $558.2 million at March 31, 2020, compared to $527.4 million a year ago, and decreased 2.0% compared to $569.4 million three months earlier.

Total deposits increased 10.7% to $592.1 million at March 31, 2020, compared to $535.0 million a year ago and increased 2.9% compared to $575.3 million at December 31, 2019, with non-interest bearing deposits increasing 8.1% to $119.4 million at March 31, 2020, compared to $110.4 million a year ago.

FHLB advances totaled $19.9 million at March 31, 2020 from $25.3 million at March 31, 2019.  Notes payable decreased to $10.7 million at March 31, 2020 from $11.9 million a year ago.

Total stockholders’ equity increased 8.6% to $70.1 million at March 31, 2020 from $64.5 million at March 31, 2019 and increased 1.1% when compared to $69.3 million at December 31, 2019.  Book value per diluted common share increased to $72.25 at March 31, 2020 from $66.19 at March 31, 2019 and $71.43 at December 31, 2019.

Credit Quality

The provision for loan losses increased to $677,000 during the first quarter of 2020.  This compares to a $500,000 provision for loan losses in the preceding quarter and no provision for loan losses in the first quarter of 2019. 

Nonperforming loans totaled $1.5 million at March 31, 2020, compared to $2.2 million at December 31, 2019 and no nonperforming loans at March 31, 2019.  Nonperforming assets decreased 42.9% to $1.5 million at March 31, 2020 compared to $2.6 million at December 31, 2019 and decreased 80.3% when compared to $7.7 million at March 31, 2019.  Total non-performing assets improved to 0.21% of total assets at March 31, 2020, compared to 0.38% of total assets three months earlier and 1.18% of total assets a year earlier.

The allowance for loan losses was $7.4 million, or 1.30% of total loans, at March 31, 2020 compared to $7.0 million, or 1.30% of total loans, at March 31, 2019.  Net loan recoveries were $15,000 in the first quarter of 2020.  This compares to net loan charge-offs of $826,800 in the fourth quarter of 2019 and net loan recoveries of $6,000 in the first quarter of 2019. 

Capital

The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio of 11.27%, Common equity tier 1 capital ratio of 13.01%, Tier 1 capital ratio of 13.01% and Total capital ratio of 14.24%, at March 31, 2020.

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
March 31, 2020, December 31, 2019 and March 31, 2019
UNAUDITED			March 31, 2020				December 31, 2019				March 31, 2019
ASSETS
Cash and due from banks			$	52,796,917			$	38,984,145			$	31,726,670
Federal funds sold				489,448				100,000				195,532
Total cash and cash equivalents				53,286,365				39,084,145				31,922,202
Investment securities				64,231,594				56,493,544				54,131,226
Loans held for sale				2,641,614				2,045,250				1,333,370
Loans, net of allowance for loan losses				558,187,421				569,419,374				527,408,940
Premises and equipment, net				24,530,411				24,860,247				16,874,523
Foreclosed assets held for sale				100				487,827				7,659,728
Accrued interest receivable				2,072,301				2,766,513				2,178,508
Deferred income taxes				1,575,948				1,443,805				2,394,267
Other investments				2,873,285				2,859,485				2,761,185
Other assets				2,228,236				2,636,708				2,039,131
			$	711,627,275			$	702,096,898			$	648,703,080
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand deposits		- non-interest bearing	$	119,398,336			$	117,450,670			$	110,401,854
		- interest bearing		166,153,663				151,696,610				135,542,375
Savings deposits				14,027,963				13,554,400				13,223,075
Time deposits	- under $250M			166,663,942				165,267,666				166,639,935
	- $250M and over			125,835,712				127,293,109				109,234,395
Total deposits				592,079,616				575,262,455				535,041,634
Federal Home Loan Bank advances				19,869,137				27,471,344				25,272,500
Notes payable				10,753,991				10,747,683				11,942,531
Accrued interest payable				876,692				713,397				614,848
Other liabilities				17,963,323				18,612,742				11,286,439
Total liabilities				641,542,759				632,807,621				584,157,952
Stockholders' equity:
Common stock				9,763				9,763				9,763
Surplus				87,752,461				87,656,698				87,276,085
Accumulated deficit				(17,555,735	)			(18,298,210	)			(22,274,306	)
Treasury stock, at cost				(387,022	)			(387,022	)			(49,888	)
Accumulated other comprehensive loss				265,049				308,048				(416,526	)
Total stockholders' equity				70,084,516				69,289,277				64,545,128
			$	711,627,275			$	702,096,898			$	648,703,080

WHITE RIVER BANCSHARES COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2020, December 31, 2019 and March 31, 2019
	For the Three Months Ended
UNAUDITED	March 31, 2020				December 31, 2019				March 31, 2019
Interest income:
Loans, including fees	$	7,735,747			$	7,911,834			$	7,166,824
Investment securities		359,413				346,122				360,892
Federal funds sold and other		83,925				40,753				70,787
Total interest income		8,179,085				8,298,709				7,598,503
Interest expense:
Deposits		1,891,372				1,841,859				1,436,226
Federal Home Loan Bank advances		117,248				130,782				153,014
Notes payable		167,870				173,369				147,516
Federal funds purchased and other		32				11,965				17,290
Total interest expense		2,176,522				2,157,975				1,754,046
Net interest income		6,002,563				6,140,734				5,844,457
Provision for loan losses		677,000				500,000				-
Net interest income after provision for loan losses		5,325,563				5,640,734				5,844,457
Non-interest income:
Service charges and fees on deposits		174,174				168,410				183,873
Wealth management fee income		468,305				474,168				409,459
Secondary market fee income		288,749				259,280				120,992
Loss on sales and write-downs of foreclosed assets		(1,917	)			(46,977	)			-
Other		140,020				419,335				131,166
Total non-interest income		1,069,331				1,274,216				845,490
Non-interest expense:
Salaries and benefits		3,670,178				3,452,028				3,272,837
Occupancy and equipment		649,038				738,169				528,130
Data processing		315,592				296,598				299,029
Marketing and business development		126,936				182,312				141,099
Professional services		392,376				392,950				332,854
Other		250,563				327,843				302,421
Total non-interest expense		5,404,683				5,389,900				4,876,370
Income before income taxes		990,211				1,525,050				1,813,577
Income tax provision		247,736				392,679				646,904
Net income	$	742,475			$	1,132,371			$	1,166,673
Basic earnings per common share	$	0.77			$	1.17			$	1.20
Diluted earnings per common share	$	0.77			$	1.17			$	1.20

White River Bancshares Company
Selected Financial Data		Three Months Ended
UNAUDITED		March 31, 2020				December 31, 2019				March 31, 2019
Selected Financial Condition Data: End of Period Balances
	Assets	$	711,627,275			$	702,096,898			$	648,703,080
	Investment Securities		64,231,594				56,493,544				54,131,226
	Loans, gross		568,217,563				578,161,121				535,714,417
	Allowance for Loan Losses		7,388,528				6,696,497				6,972,107
	Deposits		592,079,616				575,262,455				535,041,634
	FHLB Advances		19,869,137				27,471,344				25,272,500
	Notes Payable		10,753,991				10,747,683				11,942,531
	Common Shareholders' Equity		70,084,516				69,289,277				64,545,128
Selected Financial Condition Data: Average Balances
	Assets	$	696,324,277			$	665,273,269			$	626,343,422
	Earning Assets		663,389,661				633,146,281				596,692,901
	Investment Securities		58,681,569				56,180,684				55,240,637
	Loans, gross		572,011,997				563,326,863				526,258,915
	Deposits		577,553,407				547,479,974				509,466,943
	FHLB Advances		18,510,101				22,197,663				28,854,682
	Notes Payable		10,750,063				11,365,461				11,977,464
	Common Shareholders' Equity		69,760,807				68,598,333				63,335,288
Selected Operating Results:
	Interest Income	$	8,179,085			$	8,298,709			$	7,598,503
	Interest Expense		2,176,522				2,157,975				1,754,046
	Net Interest Income		6,002,563				6,140,734				5,844,457
	Provision for Loan Losses		677,000				500,000				-
	Net Interest Income After Provision for Loan Losses		5,325,563				5,640,734				5,844,457
	Noninterest Income		1,069,331				1,274,216				845,490
	Noninterest Expense		5,404,683				5,389,900				4,876,370
	Income Before Income Taxes		990,211				1,525,050				1,813,577
	Income Tax Provision		247,736				392,679				646,904
	Net Income	$	742,475			$	1,132,371			$	1,166,673
	Basic Net Income per Common Share	$	0.77			$	1.17			$	1.20
	Diluted Net Income per Common Share		0.77				1.17				1.20
	Dividends Paid per Common Share		-				-				-
	Book Value Per Common Share		72.25				71.43				66.19
	Book Value Per Common Share-Diluted		72.25				71.43				66.19
	Common Shares Outstanding		969,998				969,998				975,077
	Diluted Common Shares Outstanding		969,998				969,998				975,077
	Basic Weighted Average Common Shares Outstanding		969,998				971,318				975,077
	Diluted Weighted Average Common Shares Outstanding		969,998				971,318				975,077
Selected Ratios:
	Return on Average Assets		0.43	%			0.68	%			0.76	%
	Return on Average Common Shareholders' Equity		4.28	%			6.55	%			7.47	%
	Average Common Shareholders' Equity to Average Assets		10.02	%			10.31	%			10.11	%
	Net Interest Margin		3.64	%			3.85	%			3.97	%
	Efficiency		76.42	%			72.69	%			72.89	%
Selected Asset Quality:
	Net (Recoveries) Charge-offs	$	(15,031	)		$	826,847			$	(6,260	)
	Classified Assets		1,769,453				2,902,922				7,944,129
	Nonperforming Loans		1,509,590				2,153,921				-
	Nonperforming Assets		1,509,690				2,641,748				7,659,728
	Total Nonperforming Loans to Total Loans		0.27	%			0.37	%			0.00	%
	Total Nonperforming Loans to Total Assets		0.21	%			0.31	%			0.00	%
	Total Nonperforming Assets to Total Assets		0.21	%			0.38	%			1.18	%

 

Contact:	Scott Sandlin, Chief Strategy Officer
	479-684-3754

 

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