SVB&T Corporation, Parent Company of Springs Valley Bank & Trust Company, Reports 2022 Fourth Quarter and Annual Earnings and Declares Quarterly Dividend
SVB&T Corporation (OTCQX:SVBT) reported unaudited fourth quarter earnings for 2022 of $1.43 million, or $1.30 EPS, representing a 17.12% increase year-over-year. The return on average assets stood at 1.06%, up from 0.98% a year earlier. A quarterly dividend of $0.18 was declared, reflecting a 12.50% annualized increase. Net interest income for Q4 was $4.87 million, a rise from $4.73 million the previous year, driven by increased loan balances amid a higher rate environment. Total assets grew by $70.47 million to $560.57 million, and total loans increased by $65.82 million. YTD earnings were $6.35 million, down 13.73% from 2021, amidst rising interest expenses.
- 17.12% increase in Q4 EPS to $1.30
- Total assets rose by $70.47 million to $560.57 million
- Declared a quarterly dividend of $0.18, a 12.50% increase
- YTD earnings decreased by 13.73% to $6.35 million
- Quarterly earnings fell by 11.77% or $191,000
- Noninterest expense increased by $1.24 million YTD, reaching $18.52 million
JASPER, IN / ACCESSWIRE / February 14, 2023 / SVB&T Corporation (OTCQX:SVBT), parent company of Springs Valley Bank & Trust Company, today announced 2022 fourth quarter unaudited earnings of
SVB&T Corporation also announced that its Board of Directors declared a quarterly dividend of
Net interest income before provision expense for the fourth quarter ended December 31, 2022 was
Quarter over trailing quarter earnings decreased approximately
SVB&T Corporation book value (adjusted for the 2022 stock split) has decreased from
Total assets increased
Year to date (YTD) unaudited earnings for the twelve months ended December 31, 2022 were
Net interest income before provision expense for the twelve months ended December 31, 2022 was
"While I have experienced several tumultuous economic periods accompanied by volatile interest rate environments over the course of my four-decades in community banking, never have the increases come with the magnitude and velocity (seven increases totaling 425 basis points, with most of that occurring in the last two quarters) as we experienced in 2022," remarked President and CEO, Jamie Shinabarger. "The FOMC's actions in response to inflation have caused wholesale and other funding sources (FHLB advances, public funds, brokered CDs, subordinated debt, etc.) to explode in terms of cost. While rates on retail deposits are lagging, there remains considerable pressure on those as well," Shinabarger added. Connecting the dots, Mr. Shinabarger went on to say, "From June to December of 2022, SVB&T Corporation's consolidated monthly cost on average assets increased from
While the short-term expectation of rate movements continues to favor increases through at least mid-2023, it remains to be seen how much higher and how long these higher rates will remain. "We budgeted softer loan growth in 2023, knowing that demand would be dampened by higher rates, that funding costs would eat into our margin, and that credit deterioration could start to show as a result of stressed business cash flows. It's a pretty simple but challenging strategy: managing core funding costs will be the watchword for 2023, and Springs Valleys' full relationship customers will command the best rates on both sides of the balance sheet," Shinabarger concluded.
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For more information contact: Ryan Heim, Treasurer & CFO, SVB&T Corporation, at 812.634.4889 or rheim@svbt.com.
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. Its subsidiary, Springs Valley Bank & Trust Company, has locations in Dubois, Daviess, Gibson, and Orange Counties, offering full-service bank and financial 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 consumer and mortgage applications, and a variety of other loan options. Springs Valley Bank is a member of FDIC and is an Equal Housing Lender.
In addition, the company has a full-service financial advisory group 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. Trust and investment products are not deposits; not insured by the FDIC; not a deposit or other obligation of, or guaranteed by, the depository institution; not insured by any Federal Government Agency; and may lose value - subject to investment risks, including possible loss of the principal amount invested.
More information can be found online at www.svbt.bank. The Corporation'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's 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, capital market conditions, and/or other factors.
Selected Consolidated Financial Data of SVB&T Corporation
(In Thousands, Except Shares Outstanding and Per Share Data)
Unaudited | Audited | |||||||
31-Dec | 31-Dec | |||||||
2022 | 2021 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 11,834 | $ | 10,026 | ||||
Interest-bearing time deposits | 992 | 1,252 | ||||||
Fed funds sold | 10,790 | 1,597 | ||||||
Available for sale securities | 58,090 | 66,448 | ||||||
Other investments | 2,517 | 2,738 | ||||||
Loans held for sale | 44 | 1,377 | ||||||
Loans net of allowance for loan losses | 445,959 | 378,572 | ||||||
Premises and equipment | 6,676 | 6,668 | ||||||
Bank-owned life insurance | 9,335 | 9,173 | ||||||
Accrued interest receivable | 2,981 | 2,861 | ||||||
Foreclosed assets held for sale | 49 | 49 | ||||||
Mortgage servicing rights | 2,049 | 1,426 | ||||||
Lender risk account (FHLBI) | 1,590 | 1,476 | ||||||
Other assets | 7,666 | 6,434 | ||||||
Total assets | $ | 560,572 | $ | 490,097 | ||||
Liabilities and Stockholders' Equity | ||||||||
Noninterest-bearing deposits | 96,412 | 92,718 | ||||||
Interest-bearing deposits | 372,811 | 294,191 | ||||||
Borrowed funds | 24,000 | 34,500 | ||||||
Subordinated debentures | 5,000 | 5,000 | ||||||
Accrued interest payable and other liabilities | 7,152 | 7,066 | ||||||
Total liabilities | $ | 505,375 | $ | 433,475 | ||||
Stockholders' equity - substantially restricted | 55,197 | 56,622 | ||||||
Total liabilities and stockholders' equity | $ | 560,572 | $ | 490,097 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
31-Dec | 31-Dec | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Operating Data: | ||||||||||||||||
Interest and dividend income | $ | 6,255 | $ | 5,173 | $ | 21,554 | $ | 20,710 | ||||||||
Interest expense | 1,390 | 443 | 3,164 | 1,953 | ||||||||||||
Net interest income | $ | 4,865 | $ | 4,730 | $ | 18,390 | $ | 18,757 | ||||||||
Provision for loan losses | 362 | 324 | 973 | 1,285 | ||||||||||||
Net interest income after provision for loan losses | $ | 4,503 | $ | 4,406 | $ | 17,417 | $ | 17,472 | ||||||||
Fiduciary activities | 1,013 | 1,077 | 4,104 | 4,072 | ||||||||||||
Customer service fees | 218 | 200 | 824 | 652 | ||||||||||||
Increase in cash surrender value of life insurance | 41 | 42 | 163 | 171 | ||||||||||||
Net gain on loan sales | 159 | 388 | 1,119 | 2,426 | ||||||||||||
Realized gain/(loss) on securities | 0 | 0 | 0 | 10 | ||||||||||||
Other income | 532 | 270 | 2,441 | 1,259 | ||||||||||||
Total noninterest income | $ | 1,963 | $ | 1,977 | $ | 8,651 | $ | 8,590 | ||||||||
Salary and employee benefits | 2,819 | 3,119 | 11,026 | 10,384 | ||||||||||||
Premises and equipment | 542 | 472 | 2,126 | 2,026 | ||||||||||||
Data processing | 510 | 475 | 1,967 | 1,784 | ||||||||||||
Deposit insurance premium | 35 | 32 | 136 | 127 | ||||||||||||
Professional fees | 203 | 230 | 862 | 789 | ||||||||||||
Other expenses | 695 | 654 | 2,401 | 2,165 | ||||||||||||
Total noninterest expense | $ | 4,804 | $ | 4,982 | $ | 18,518 | $ | 17,275 | ||||||||
Income before taxes | 1,662 | 1,401 | 7,550 | 8,787 | ||||||||||||
Income tax expense | 233 | 178 | 1,199 | 1,404 | ||||||||||||
Net income | $ | 1,429 | $ | 1,223 | $ | 6,351 | $ | 7,383 | ||||||||
Shares outstanding (adjusted for stock split) | 1,097,144 | 1,098,692 | 1,097,144 | 1,098,692 | ||||||||||||
Average shares - basic (adjusted for stock split) | 1,099,253 | 1,098,692 | 1,099,792 | 1,102,598 | ||||||||||||
Average shares - diluted (adjusted for stock split) | 1,099,253 | 1,098,692 | 1,099,792 | 1,102,598 | ||||||||||||
Basic earnings per share (adjusted for stock split) | $ | 1.30 | $ | 1.11 | $ | 5.78 | $ | 6.70 | ||||||||
Diluted earnings per share (adjusted for stock split) | $ | 1.30 | $ | 1.11 | $ | 5.78 | $ | 6.70 | ||||||||
Other Data: | ||||||||||||||||
Yield on average assets | 4.62 | % | 4.16 | % | 4.12 | % | 4.15 | % | ||||||||
Cost on average assets | 1.03 | % | 0.36 | % | 0.60 | % | 0.39 | % | ||||||||
Interest rate spread | 3.59 | % | 3.80 | % | 3.52 | % | 3.76 | % | ||||||||
Net interest margin | 3.73 | % | 4.01 | % | 3.69 | % | 3.99 | % | ||||||||
Number of full service banking centers | 6 | 6 | 6 | 6 | ||||||||||||
Return on average assets | 1.06 | % | 0.98 | % | 1.21 | % | 1.48 | % | ||||||||
Average assets | $ | 541,325 | $ | 497,199 | $ | 523,711 | $ | 498,708 | ||||||||
Return on average equity | 10.76 | % | 8.75 | % | 11.76 | % | 13.74 | % | ||||||||
Average equity | $ | 53,133 | $ | 55,897 | $ | 54,001 | $ | 53,724 | ||||||||
Equity to assets ratio (EOP) | 9.85 | % | 11.55 | % | 9.85 | % | 11.55 | % | ||||||||
Average total deposits | $ | 455,639 | $ | 395,460 | $ | 431,793 | $ | 398,773 | ||||||||
Loans past due 30 to 89 days (still accruing) | $ | 1,415 | $ | 127 | $ | 1,415 | $ | 127 | ||||||||
Loans past due 90 days or more (still accruing) | $ | 321 | $ | 464 | $ | 321 | $ | 464 | ||||||||
Nonaccrual loans | $ | 3,103 | $ | 1,222 | $ | 3,103 | $ | 1,222 | ||||||||
Book value per share (adjusted for stock split) | $ | 50.31 | $ | 51.54 | $ | 50.31 | $ | 51.54 | ||||||||
Market value per share - end of period close (adjusted for stock split) | $ | 46.75 | $ | 49.65 | $ | 46.75 | $ | 49.65 |
SOURCE: SVB&T Corporation
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