Savi Financial Corporation Earns $964,000 in First Quarter 2022; Non-PPP Loans Grow 19% and Deposits Increase 16% Year-Over-Year
Savi Financial Corporation (OTC Pink: SVVB) reported a net income of $964,000 or $0.22 per diluted share for Q1 2022, a slight decrease from $986,000 or $0.23 per share year-over-year. Factors contributing to profitability included core loan and deposit growth, with total revenue rising by 23% to $6.07 million. NIM contracted to 3.63% due to reduced PPP loan fees, yet it remains above the peer average. Total deposits surged 24% year-over-year to $440.5 million, indicating strong market activity. SaviBank's capital levels are healthy after issuing $17 million in subordinated notes.
- Net income of $964,000 in Q1 2022 represents solid profitability.
- Total revenue increased 23% YoY to $6.07 million.
- Deposits grew 24% YoY to $440.5 million, indicating robust growth.
- SaviBank's capital levels remain above well-capitalized thresholds.
- Net income decreased from $986,000 in Q1 2021.
- Net interest margin (NIM) fell to 3.63% from 4.09% YoY, primarily due to lower PPP loan fees.
MOUNT VERNON, Wash., April 28, 2022 (GLOBE NEWSWIRE) -- Savi Financial Corporation, Inc. (OTC Pink: SVVB), the bank holding company for SaviBank, today reported net income for the first quarter of 2022 was
“Our solid operating performance this quarter was highlighted by strong revenue growth, SBA premium income, steady loan originations and core deposit growth,” said Michal D. Cann, Chairman and President of Savi Financial Corporation. “As we continue to wind down from the unprecedented events of the pandemic, we have shifted our efforts towards pursuing organic growth opportunities within our markets. Northwest Washington continues to be one of the most vibrant regions of the country, with a solid employment base and a booming housing market, and we are well positioned to take advantage of new opportunities as we continue to grow the Company.”
“Over the last two years, we were active participants in the SBA Paycheck Protection Program (“PPP”), and generated over
“Loan production continues to be solid. Net loan growth, excluding PPP loans, increased
“The contraction in our net interest margin (NIM) during the quarter was largely due to lower PPP loan origination fees compared to the preceding quarter,” said Rob Woods, Chief Financial Officer of SaviBank. “However, we anticipate net interest margin improvement with the expected increases in interest rates in 2022, while our yield on earning assets continues to help keep our NIM above industry averages.” The Company’s NIM was
First Quarter 2022 Highlights:
- Net income was
$964,000 in the first quarter of 2022, compared to$986,000 in the first quarter of 2021, and$322,000 in the fourth quarter of 2021. - Earnings per share were
$0.22 in the first quarter, compared to$0.23 in the first quarter a year ago, and$0.07 in the preceding quarter. - Net interest income was
$4.00 million in the first quarter of 2022, compared to$4.05 million in the first quarter a year ago, and$4.19 million in the fourth quarter of 2021. The decrease in net interest income reflected lower interest and fees on PPP loans compared to the prior quarter and the year ago quarter, due to slowing PPP loan forgiveness as the program nears its conclusion. - Total revenue, consisting of net interest income and non-interest income, increased
23% to$6.07 million in the first quarter of 2022, compared to$4.92 million in the first quarter a year ago and increased5% compared to$5.78 million in the preceding quarter. - Non-interest expense was
$4.87 million in the first quarter compared to$3.53 million in the first quarter a year ago and$4.90 million in the preceding quarter. Noninterest expense for the preceding quarter included a$164,000 prepayment penalty for a paydown on FHLB borrowings. - Average first quarter 2022 total loans decreased
1% to$354.5 million , compared to$356.3 million in the first quarter a year ago, and increased4% from$340.3 million in the fourth quarter of 2021. Total loans at March 31, 2022, decreased1% to$364.6 million from$368.5 million a year ago and increased4% compared to$352.2 million at December 31, 2021. Due to PPP loan forgiveness, the PPP loan portfolio totaled$587,300 at March 31, 2022, compared to$66.6 million a year ago and$5.2 million at December 31, 2021. - SBA and USDA loan production for the twelve months ended March 31, 2022, totaled 27 loans for
$32.7 million , compared to production of 18 loans for$26.5 million in the year-ago period. - Average first quarter 2022 total deposits grew
24% to$440.5 million , from$353.9 million in the first quarter a year ago, and increased3% from$425.9 million in the fourth quarter of 2021. Total deposits grew16% to$448.3 million , at March 31, 2022, from$385.8 million a year ago, and increased4% from$432.7 million at December 31, 2021. - Due to the improvement in economic conditions, along with the overall quality of the loan portfolio, the Company recorded no provision for loan losses in the first quarter of 2022. This compared to a
$140,000 provision for loan losses in the first quarter of 2021, and a$491,000 provision in the fourth quarter of 2021. - Allowance for loan losses, as a percentage of total loans, was
1.16% at March 31, 2022, compared to1.03% at March 31, 2021, and1.20% at December 31, 2021. - Nonperforming loans, as a percentage of total loans, was
0.40% at March 31, 2022, compared to0.75% at March 31, 2021, and0.40% at December 31, 2021. - Nonperforming assets, as a percentage of total assets, was
0.47% at March 31, 2022, compared to0.71% a year ago and0.49% three months earlier. - Net charge-offs were
$1,000 in the first quarter of 2022, compared to net recoveries of$37,000 in the first quarter of 2021, and net charge-offs of$242,000 in the fourth quarter of 2021. - SaviBank capital levels remained above the threshold for well-capitalized institutions with a tier-1 leverage ratio of
7.97% at March 31, 2022.
On March 7, 2022, the Company completed the issuance of
“This successful capital raise is giving us an opportunity to build out our business plan and is an affirmation of the tremendous opportunities in our market,” said Cann. “In 2021, we expanded into the Friday Harbor market, completed the Freeland branch purchase on Whidbey Island from Coastal Community Bank, relocated from our existing Freeland branch to the new location and formed our mortgage lending division. These initiatives are providing revenue generation and contributing to the bottom line. We will continue to search for potential strategic opportunities to expand our Company franchise.”
About Northwest Washington
SaviBank currently operates six branches in Skagit County, two branches in Island County, and one branch in Whatcom County. In addition, the Company has a loan production team located in San Juan County. The Skagit, Whatcom, Island and San Juan counties region stretches north from the greater Seattle/Everett/Bellevue metropolis to the Canadian border.
The housing market in Skagit, Island, Whatcom and San Juan counties remains healthy. According to the Northwest Multiple Listing Service, the average home in Skagit County sold for
Skagit’s population is projected to grow
Sources:
http://www.northwestmls.com/library/CorporateContent/statistics/Recaps.pdf
https://www.capitaliq.spglobal.com/
About Savi Financial Corporation Inc. and SaviBank –
Savi Financial Corporation is the bank holding company which owns SaviBank. The Bank began operations April 11, 2005, and has 9 branch locations in Anacortes, Burlington, Bellingham, Concrete, Mount Vernon (2), Oak Harbor, Freeland and Sedro-Woolley, Washington, and a loan production office in Friday Harbor. The Bank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals in and around Skagit, Island, Whatcom and San Juan counties. As a locally-owned community bank, we believe that when everyone becomes Savi about their finances, our entire community benefits. Call us or stop by one of our branches and we’ll show you how to bank Savi. For additional information about SaviBank, visit; www.SaviBank.com.
Forward Looking Statement
This release may contain “forward-looking statements” that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to SaviBank or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.
| SELECTED FINANCIAL DATA | |||||||||||||||||
| (In thousands of dollars, except for ratios and per share amounts) | |||||||||||||||||
| Unaudited | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| March 31, 2022 | December 31, 2021 | Var % | March 31, 2021 | Var % | |||||||||||||
| SUMMARY OF OPERATIONS | |||||||||||||||||
| Interest income | $ | 4,305 | $ | 4,474 | (4 | )% | $ | 4,536 | (5 | )% | |||||||
| Interest expense | (307 | ) | (289 | ) | 6 | (490 | ) | (37 | ) | ||||||||
| Net interest income | 3,998 | 4,185 | (4 | ) | 4,046 | (1 | ) | ||||||||||
| Provision for loan losses | — | (491 | ) | (100 | ) | (140 | ) | (100 | )% | ||||||||
| NII after loss provision | 3,998 | 3,694 | 8 | 3,906 | 2 | ||||||||||||
| Non-interest income | 2,068 | 1,590 | 30 | 870 | 138 | ||||||||||||
| Non-interest expense | (4,873 | ) | (4,902 | ) | (1 | ) | (3,530 | ) | 38 | ||||||||
| Income before tax | 1,193 | 382 | 212 | 1,246 | (4 | ) | |||||||||||
| Federal income tax expense | 229 | 60 | 282 | 260 | (12 | ) | |||||||||||
| Net income | $ | 964 | $ | 322 | 199 | % | $ | 986 | (2 | )% | |||||||
| PER COMMON SHARE DATA | |||||||||||||||||
| Number of shares outstanding (000s) | 3,439 | 3,439 | - | % | 3,434 | 0 | % | ||||||||||
| Earnings per share, diluted | $ | 0.22 | $ | 0.07 | 202 | $ | 0.23 | (2 | ) | ||||||||
| Market value | 10.78 | 10.70 | 1 | 11.00 | (2 | ) | |||||||||||
| Book value | 10.86 | 10.94 | (1 | ) | 10.25 | 6 | |||||||||||
| Market value to book value | 99.23 | % | 97.77 | % | 1 | 107.36 | % | (8 | ) | ||||||||
| BALANCE SHEET DATA | |||||||||||||||||
| Assets | $ | 511,578 | $ | 479,564 | 7 | % | $ | 449,740 | 14 | % | |||||||
| Investments securities | 48,489 | 34,267 | 42 | 11,066 | 338 | ||||||||||||
| Total loans | 364,634 | 352,231 | 4 | 368,501 | (1 | ) | |||||||||||
| Total deposits | 448,251 | 432,743 | 4 | 385,807 | 16 | ||||||||||||
| Borrowings | 24,500 | 7,500 | 227 | 27,500 | (11 | ) | |||||||||||
| Shareholders’ equity | 37,361 | 37,638 | (1 | ) | 35,183 | 6 | |||||||||||
| AVERAGE BALANCE SHEET DATA | |||||||||||||||||
| Average assets | $ | 495,571 | $ | 477,939 | 4 | % | $ | 429,560 | 15 | % | |||||||
| Average total loans | 354,454 | 340,313 | 4 | 356,300 | (1 | ) | |||||||||||
| Average total deposits | 440,497 | 425,905 | 3 | 353,867 | 24 | ||||||||||||
| Average shareholders' equity | 37,500 | 37,624 | (0 | ) | 34,708 | 8 | |||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||
| Net (charge-offs) recoveries | $ | (1 | ) | $ | (242 | ) | N/M | $ | 37 | (103 | )% | ||||||
| Net (charge-offs) recoveries to average loans | (0.00 | )% | (0.07 | )% | N/M | 0.04 | % | (103 | ) | ||||||||
| Non-performing loans as a % of loans | 0.40 | 0.40 | 0 | 0.75 | (47 | ) | |||||||||||
| Non-performing assets as a % of assets | 0.47 | 0.49 | (5 | ) | 0.71 | (34 | ) | ||||||||||
| Allowance for loan losses as a % of total loans | 1.16 | 1.20 | (3 | ) | 1.03 | 13 | |||||||||||
| Allowance for loan losses as a % of non-performing loans | 289.54 | 300.50 | (4 | ) | 137.08 | 111 | |||||||||||
| FINANCIAL RATIOS\STATISTICS | |||||||||||||||||
| Return on average equity | 10.28 | % | 3.42 | % | 200 | % | 11.36 | % | (10 | )% | |||||||
| Return on average assets | 0.78 | 0.27 | 189 | 0.92 | (15 | ) | |||||||||||
| Net interest margin | 3.63 | 3.84 | (5 | ) | 4.09 | (11 | ) | ||||||||||
| Efficiency ratio | 78.58 | 81.57 | (4 | ) | 70.25 | 12 | |||||||||||
| Average number of employees (FTE) | 132 | 128 | 3 | 110 | 20 | ||||||||||||
| CAPITAL RATIOS | |||||||||||||||||
| Tier 1 leverage ratio -- Bank | 7.97 | 7.91 | 1 | % | 8.47 | (6 | )% | ||||||||||
| Common equity tier 1 ratio -- Bank | 9.64 | 10.05 | (4 | )% | 11.09 | (13 | )% | ||||||||||
| Tier 1 risk-based capital ratio -- Bank | 9.64 | 10.05 | (4 | )% | 11.09 | (13 | )% | ||||||||||
| Total risk-based capital ratio --Bank | 10.72 | 11.21 | (4 | )% | 12.30 | (13 | )% | ||||||||||
FAQ
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