FAYETTEVILLE, Ark., April 15, 2019 (GLOBE NEWSWIRE) -- White River Bancshares Company (OTCQX: WRIV), (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today reported that strong core deposit growth and net interest margin expansion contributed to net income increasing 6.39% to $1.17 million, or $1.20 per diluted share, in the first quarter of 2019, compared to $1.10 million, or $1.14 per diluted share, in the first quarter of 2018.  In the fourth quarter of 2018, the Company earned net income of $928,000, or $0.95 per diluted share.  All financial results are unaudited.

First Quarter 2019 Financial Highlights:

  • First quarter net income was $1.17 million, or $1.20 per diluted share, compared with $1.10 million, or $1.14 per diluted share, in the first quarter of 2018.
  • First quarter net interest margin (“NIM”) expanded by 23 basis points to 3.97% compared to the first quarter a year ago.
  • Net loans of $527.41 million at March 31, 2019, an increase of 5.22% from March 31, 2018.
  • Total deposits of $535.04 million at March 31, 2019, an increase of 5.11% from March 31, 2018.
  • Non-interest-bearing deposits increased 25.09% to $110.40 million at March 31, 2019 compared to $88.26 million a year ago.
  • Non-performing assets at March 31, 2019 improved to 1.18% of total assets from 1.73% a year ago.
  • Book value per common share increased to $66.19 at March 31, 2019 from $61.39  a year ago.
  • Total risk-based capital ratio of 14.55% and Tier 1 leverage ratio of 11.72% for the Bank at March 31, 2019.

“We delivered solid first quarter 2019 earnings, supported by strong net interest income growth, continued loan and core deposit growth, an improved net interest margin and solid asset quality metrics ,” said Gary Head, President and Chief Executive Officer.  “We are pleased to be opening our newest branch office this month, located at 3712 South Pinnacle Hills Parkway Suite 102, in Rogers Arkansas. This new branch location further expands our network and presence in Northwest Arkansas, one of the fastest growing metro areas in the country.  We are well positioned to continue growing, as we focus on building a steady, well diversified bank.”

Income Statement

The Company’s net interest margin improved 10 basis points to 3.97% in the first quarter of 2019, compared to 3.87% in the preceding quarter and improved 23 basis points when compared to 3.74% in the first quarter of 2018. 

First quarter net interest income increased by 10.47% to $5.84 million, from $5.29 million in the first quarter of 2018, and increased by 2.65% when compared to $5.69 million in the fourth quarter of 2018.  Total interest income increased by 12.47% to $7.60 million in the first quarter of 2019 from $6.76 million during the first quarter of 2018 and increased by 3.80% compared to $7.32 million in the preceding quarter.  Total interest expense increased by 19.70% to $1.75 million in the first quarter of 2019, from $1.47 million during the same period in 2018, and increased 7.84% compared to $1.63 million in the preceding quarter, largely as a result of the increase in interest-bearing deposits.

Non-interest income was $845,490 in the first quarter of 2019, compared to $1.00 million in the first quarter a year ago.  In the preceding quarter the Company reported non-interest income of ($567,806).

Non-interest expense decreased slightly to $4.88 million in the first quarter of 2019 compared to $4.93 million in the first quarter of 2018 and was up 5.45% compared to $4.62 million in the preceding quarter.  Salaries and benefits, the largest component of non-interest expense, decreased by $107,102, or 3.38%, over the year ago period.

Balance Sheet Review

Total assets increased by 4.38% to $648.70 million at March 31, 2019 from $621.48 million at March 31, 2018 and increased 5.70% compared to $613.69 million at December 31, 2018.  Cash and cash equivalents decreased to $31.92 million at March 31, 2019 from $42.30 million a  year ago. Investment securities increased to $54.13 million at March 31, 2019 from $48.08 million a year ago.

Loans, net of allowance for loan losses, increased 5.22% to $527.41 million at quarter-end, compared to $501.22 million a year ago, and increased 4.61% compared to $504.16 million three months earlier.

Total deposits increased 5.11% to $535.04 million at March 31, 2019 compared to $509.04 million a year ago and increased 4.89% compared to $510.11 million at December 31, 2018.  Non-interest-bearing deposits increased 25.09% to $110.40 million at March 31, 2019 from $88.26 million a year ago, and interest-bearing deposits increased moderately to $424.64 million at quarter-end from $420.79 million a year ago.

FHLB advances decreased to $25.27 million at March 31, 2019 from $38.16 million at March 31, 2018.  Notes payable decreased to $11.94 million in the first quarter from $12.49 million over the same period a year ago.

Total stockholders’ equity increased 9.51% to $64.54 million at March 31, 2019 from $58.94 million at March 31, 2018 and increased 2.73% when compared to $62.83 million at December 31, 2018.  Book value per common share increased to $66.19 at March 31, 2019 from $61.39 at March 31, 2018 and $64.43 million at December 31, 2018.

Credit Quality

“We had net loan recoveries during the quarter, and as a result we recorded no provision for loan losses during the first quarter,” added Head.  “This compares to a negative provision for loan losses of $750,000 in the preceding quarter and no provision for loan losses in the first quarter of 2018.”  Net loan recoveries were $6,260 in the first quarter of 2019, compared with recoveries of $408,930 in the fourth quarter of 2018 and recoveries of $34,911 in the first quarter a year ago.

There were no non-performing loans on the books at March 31, 2019 or at December 31, 2018.  At March 31, 2018, nonperforming loans totaled $145,405.  Nonperforming assets decreased to $7.66 million at March 31, 2019 compared to $7.73 million at December 31, 2018 and $10.75 million at March 31, 2018.  Total non-performing assets improved to 1.18% of total assets at March 31, 2019, compared to 1.26% of total assets three months earlier and 1.73% a year earlier.

The allowance for loan losses was $6.97 million, or 1.30% of total loans, at March 31, 2019 compared to $7.26 million, or 1.42% of total loans, at March 31, 2018.

Capital

The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio of 11.72%, Common equity tier 1 capital ratio of 13.30%, Tier 1 capital ratio of 13.30% and Total capital ratio of 14.55% at March 31, 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, Brinkley, and Rogers, 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.

Scott Sandlin 479-684-3754 

WHITE RIVER BANCSHARES COMPANY 
CONSOLIDATED BALANCE SHEETS 
UNAUDITED 
         
   March 31, 2019 December 31, 2018 March 31, 2018 
ASSETS    
   
Cash and due from banks  $31,726,670  $27,944,329  $42,030,670  
Federal funds sold   195,532   1,101,025   249,145  
         
Total cash and cash equivalents   31,922,202   29,045,354   42,279,815  
         
Investment securities   54,131,226   53,940,001   48,082,923  
Loans held for sale   1,333,370   494,937   2,273,869  
Loans, net of allowance for loan losses   527,408,940   504,160,307   501,223,918  
Premises and equipment, net   16,874,523   8,532,146   8,340,470  
Foreclosed assets held for sale   7,659,728   7,733,440   10,599,626  
Accrued interest receivable   2,178,508   2,511,191   1,828,407  
Deferred income taxes   2,394,267   2,539,052   2,124,142  
Other investments   2,761,185   2,743,885   2,697,085  
Other assets   2,039,131   1,992,144   2,024,808  
         
   $648,703,080  $613,692,457  $621,475,063  
         
LIABILITIES AND STOCKHOLDERS' EQUITY  
   
Deposits:        
Demand deposits- non-interest bearing $110,401,854  $99,939,633  $88,256,463  
 - interest bearing  135,542,375   131,535,024   121,118,517  
Savings deposits   13,223,075   11,856,239   11,289,113  
Time deposits- under $250M  166,639,935   168,979,360   182,902,779  
 - $250M and over  109,234,395   97,799,817   105,478,074  
         
Total deposits   535,041,634   510,110,073   509,044,946  
         
Federal Home Loan Bank advances   25,272,500   25,371,095   38,161,644  
Note payable   11,942,531   12,086,880   12,488,980  
Accrued interest payable   614,848   587,056   565,036  
Other liabilities   11,286,439   2,709,944   2,275,864  
         
Total liabilities   584,157,952   550,865,048   562,536,470  
         
Stockholders' equity:        
Preferred stock   -   -   1,389  
Common stock   9,763   9,763   8,224  
Surplus   87,276,085   87,129,011   86,971,084  
Accumulated deficit   (22,274,306)  (23,440,979)  (26,914,153) 
Treasury stock, at cost   (49,888)  (49,888)  (49,888) 
Accumulated other comprehensive loss   (416,526)  (820,498)  (1,078,063) 
         
Total stockholders' equity   64,545,128   62,827,409   58,938,593  
         
   $648,703,080  $613,692,457  $621,475,063  
         



WHITE RIVER BANCSHARES COMPANY 
CONSOLIDATED STATEMENTS OF INCOME 
UNAUDITED 
 For The Three Months Ended 
 March 31, 2019 December 31, 2018 March 31, 2018 
       
Interest income:      
Loans, including fees$7,166,824 $6,882,662  $6,435,645  
Investment securities 360,892  340,926   264,214  
Federal funds sold and other 70,787  96,446   56,157  
       
Total interest income 7,598,503  7,320,034   6,756,016  
       
Interest expense:      
Deposits 1,436,226  1,350,383   1,111,216  
Federal Home Loan Bank advances 153,014  123,371   188,536  
Note payable 147,516  152,605   156,763  
Federal funds purchased and other 17,290  225   8,879  
       
Total interest expense 1,754,046  1,626,584   1,465,394  
       
Net interest income 5,844,457  5,693,450   5,290,622  
Provision for loan losses -  (750,000)  -  
       
Net interest income after provision for loan losses 5,844,457  6,443,450   5,290,622  
       
Non-interest income:      
Service charges and fees on deposits 183,873  198,929   209,609  
Wealth management fee income 409,459  494,996   418,144  
Secondary market fee income 120,992  137,998   251,745  
Loss on sales and write-downs of foreclosed assets -  (2,150,000)  (7,987) 
Other 131,166  750,271   132,531  
       
Total non-interest income 845,490  (567,806)  1,004,042  
       
Non-interest expense:      
Salaries and benefits 3,272,837  2,997,064   3,165,735  
Occupancy and equipment 528,130  539,425   539,217  
Data processing 299,029  302,157   262,803  
Marketing and business development 141,099  60,411   215,726  
Professional services 332,854  339,343   379,329  
Other 302,421  385,946   365,387  
       
Total non-interest expense 4,876,370  4,624,346   4,928,197  
       
Income before income taxes 1,813,577  1,251,298   1,366,467  
       
Income tax provision 646,904  323,094   269,897  
       
Net income$1,166,673 $928,204  $1,096,570  
       
Basic earnings per common share$1.20 $0.95  $1.34  
       
Diluted earnings per common share$1.20 $0.95  $1.14  
       



WHITE RIVER BANCSHARES COMPANY       
SELECTED FINANCIAL DATA At Or For The Three Months Ended 
UNAUDITED March 31, 2019 December 31, 2018 March 31, 2018 
        
Selected Financial Condition Data: End of Period Balances       
        
       Assets$648,703,080  $613,692,457  $621,475,063  
       Investment Securities 54,131,226   53,940,001   48,082,923  
       Loans, gross 535,714,417   511,621,091   510,754,757  
       Allowance for Loan Losses 6,972,107   6,965,847   7,256,970  
       Deposits 535,041,634   510,110,073   509,044,946  
       FHLB Advances 25,272,500   25,371,095   38,161,644  
       Note Payable 11,942,531   12,086,880   12,488,980  
       Common Shareholders' Equity 64,545,128   62,827,409   50,413,916  
        
Selected Financial Condition Data: Average Balances       
        
         Assets $626,343,422  $608,170,038  $599,969,998  
         Earning Assets  596,692,901   584,124,950   573,800,267  
         Investment Securities  55,240,637   52,899,703   47,293,983  
         Loans, gross  526,258,915   511,124,646   509,283,399  
         Deposits  509,466,943   506,647,368   484,856,900  
         FHLB Advances  28,854,682   23,426,724   38,193,768  
         Note Payable  11,977,464   12,133,390   12,653,970  
         Common Shareholders' Equity  63,335,288   61,605,063   49,421,183  
        
Selected Operating Results:       
        
         Interest Income $7,598,503  $7,320,034  $6,756,016  
         Interest Expense  1,754,046   1,626,584   1,465,394  
         Net Interest Income  5,844,457   5,693,450   5,290,622  
         Provision for Loan Losses  -   (750,000)  -  
         Net Interest Income After Provision for Loan Losses  5,844,457   6,443,450   5,290,622  
         Noninterest Income  845,490   (567,806)  1,004,042  
         Noninterest Expense  4,876,370   4,624,346   4,928,197  
         Income Before Income Taxes  1,813,577   1,251,298   1,366,467  
         Income Tax Provision  646,904   323,094   269,897  
         Net Income $1,166,673  $928,204  $1,096,570  
        
         Basic Net Income per Common Share $1.20  $0.95  $1.34  
         Diluted Net Income per Common Share  1.20   0.95   1.14  
         Dividends Paid per Common Share  -   -   -  
         Book Value Per Common Share  66.19   64.43   61.39  
         Book Value Per Common Share-Diluted  66.19   64.43   61.33  
         Common Shares Outstanding  975,077   975,077   821,216  
         Diluted Common Shares Outstanding  975,216   975,079   960,077  
         Basic Weighted Average Common Shares Outstanding  975,077   975,077   821,216  
         Diluted Weighted Average Common Shares Outstanding  975,216   975,079   960,077  
        
Selected Ratios:       
        
          Return on Average Assets  0.76%  0.61%  0.74% 
          Return on Average Common Shareholders' Equity  7.47%  5.98%  9.00% 
          Average Common Shareholders' Equity to Average Assets  10.11%  10.13%  8.24% 
          Net Interest Margin  3.97%  3.87%  3.74% 
          Efficiency  72.89%  90.22%  78.29% 
        
Selected Asset Quality:       
        
          Net (Recoveries) Charge-offs $(6,260) $(408,930) $(34,911) 
          Classified Assets  7,944,129   8,021,842   11,012,889  
          Nonperforming Loans  -   -   145,405  
          Nonperforming Assets  7,659,728   7,733,440   10,745,031  
          Total Nonperforming Loans to Total Loans  0.00%  0.00%  0.03% 
          Total Nonperforming Loans to Total Assets  0.00%  0.00%  0.02% 
          Total Nonperforming Assets to Total Assets  1.18%  1.26%  1.73%