White River Bancshares Co. Earns $1.50 Million, or $1.50 Per Diluted Share, in Fourth Quarter 2021 and Earns a Record $7.05 Million for the Year; Results Highlighted By Double Digit Loan and Deposit Growth Year-Over-Year

Rhea-AI Summary

White River Bancshares Company (OTCQX: WRIV) reported a remarkable 18.4% increase in net income for Q4 2021, reaching $1.50 million or $1.50 per diluted share, compared to the previous year. The annual net income surged 84.4% to a historic $7.05 million. Key growth metrics included 12.7% loan growth and 15.7% deposit growth, highlighting a strong performance in a rapidly expanding market. Nonperforming assets rose to 0.11% of total assets, with a significant increase in noninterest bearing deposits by 34.8%. The Bank maintains a robust capital position, exceeding regulatory requirements.

Positive

• Net income for Q4 2021 increased 18.4% to $1.50 million, up from $1.26 million in Q4 2020.
• Full-year net income reached a record $7.05 million, up 84.4% compared to 2020.
• Loan growth of 12.7% to $685.4 million at December 31, 2021.
• Total deposits increased 15.7% to $726.2 million at December 31, 2021.
• Noninterest bearing deposits rose 34.8% year-over-year, comprising 31.9% of total deposits.
• Net interest margin improved to 3.61% in Q4 2021, up 11 basis points year-over-year.

Negative

• Nonperforming assets rose to $932,000, or 0.11% of total assets, compared to $100,000 a year ago.
• Net loan charge-offs increased to $394,000 in Q4 2021 from $194,000 in Q4 2020.

FAYETTEVILLE, Ark., Jan. 20, 2022 (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 18.4% to $1.50 million, or $1.50 per diluted share, in the fourth quarter of 2021, compared to $1.26 million, or $1.30 per diluted share, in the fourth quarter of 2020. In the prior quarter, the Company earned $1.93 million, or $1.99 per diluted share. For the year, net income increased 84.4% to a record $7.05 million, or $7.23 per diluted share, compared to $3.82 million, or $3.94 per diluted share, in 2020. All financial results are unaudited.

“Our full year 2021 operating results were the best in the Company’s 16-year history, with record net income of $7.05 million, fueled by net interest income generation and an expanding net interest margin,” said Gary Head, President and Chief Executive Officer. “Fourth quarter 2021 results were also strong, with net income increasing 18.4% compared to the fourth quarter a year ago. We achieved double digit loan and deposit growth for the year, which contributed to our compelling results and strengthened balance sheet. Northwest Arkansas remains one of the fastest growing markets in the United States, and we remain focused on building long-term customer relationships while creating value for our customers and shareholders.”

“We continue to take advantage of the growth in our markets by fostering new customer relationships and capturing market share,” said Scott Sandlin, Chief Strategy Officer. “We are particularly encouraged with the growth in noninterest bearing demand deposits, which increased 34.8% year-over-year and represented 31.9% of total deposits at year end.   Our success in gathering new low-cost deposits is a direct result of the dedication and effort of our employees, who continue to focus on bringing in full banking relationships. This deposit gathering strategy has supported our loan growth while reducing our reliance on borrowed funds, and has helped expand our net interest margin.”

“During both rounds of Federal funding, we were active with helping our customers receive PPP loans from the SBA,” said Jeff Maland, Chief Risk Officer. “Over the course of the two rounds of PPP lending, we funded 433 PPP loans totaling $29.0 million to both existing and new customers. At year-end, only 11 PPP loans totaling $392,000 remained on the books, as a majority of these loans were forgiven during the third and fourth quarter of 2021. We have also done an excellent job of replacing PPP loans with new loan originations, with strong demand for C&I loans and non-owner occupied commercial real estate loans.”

Fourth Quarter 2021 Financial Highlights:

• Fourth quarter net income increased 18.4% to $1.50 million, or $1.50 per diluted share, compared to $1.26 million, or $1.30 per diluted share, in the fourth quarter of 2020.
• Annualized return on average assets was 0.70% in the fourth quarter, compared to 0.68% in the fourth quarter a year ago.
• Annualized return on average equity was 7.49%, compared to 6.84% in the fourth quarter a year ago.
• There was no provision for loan losses in the fourth quarter or third quarter of 2021. This compared to a $458,000 provision in the fourth quarter of 2020.
• Net loans increased 12.7% to $685.4 million at December 31, 2021, compared to $608.4 million at December 31, 2020.
• Total deposits increased 15.7% to $726.2 million at December 31, 2021, compared to $627.8 million a year ago.
• Noninterest bearing deposits increased 34.8% to $231.8 million at December 31, 2021, compared to $172.0 million a year ago.
• Nonperforming assets totaled $932,000, or 0.11% of total assets at December 31, 2021, compared to $100,000, or 0.00% of total assets at December 31, 2020.
• Book value per common share was $80.77 at December 31, 2021, from $76.58 a year ago.
• Total risk-based capital ratio was 12.73% and the Tier 1 leverage ratio was 10.49% for the Bank at December 31, 2021.

Branch Expansion

During the fourth quarter of 2021, the Company opened its sixth branch, located in Harrison in the Durand Center at 303 N. Main Street, Suite 100. “This new branch is in an excellent location, and will help us expand our footprint into Boone County,” said Brant Ward, Chief Operating Officer. Harrison, located in the heart of the Ozark Mountains, is nationally recognized as one of the "Best Small Towns in America" and was previously featured in Where to Retire Magazine as one of the best retirement towns in the United States. https://www.cityofharrison.com/

Income Statement

“The changes we made in our investments and funding mix over the last year helped reduce our dependency on brokered CDs, internet CDs and FHLB advances. As a result, we are now primarily funding new loan growth with low-cost deposits, which helped our fourth quarter net interest margin expand 11 basis points compared to the fourth quarter a year ago,” said Ward.

The Company’s NIM improved to 3.61% in the fourth quarter of 2021, compared to 3.50% in the fourth quarter of 2020, and contracted three basis points compared to 3.64% in the prior quarter. For the year 2021, the net interest margin improved 12 basis points to 3.65%, compared to 3.53% for the year 2020.

Fourth quarter net interest income increased 19.2% to $7.4 million, compared to $6.2 million in the fourth quarter of 2020. Total interest income increased 7.4% to $8.4 million in the fourth quarter of 2021, from $7.8 million in the fourth quarter of 2020. Total interest expense decreased by 38.4% to $986,000 in the fourth quarter of 2021, from $1.6 million during the fourth quarter of 2020.   For the year 2021, net interest income increased 14.9% to $28.3 million, compared to $24.6 million in 2020.

Noninterest income was $1.5 million in both the fourth quarter of 2021, and in the fourth quarter a year ago. Higher wealth management fee income and steady service charges and deposit fees was offset by a loss on sales and write-downs on foreclosed assets during the fourth quarter.   For the year 2021, noninterest income increased 32.0% to $6.6 million, compared to $5.0 million in 2020, reflecting higher wealth management fees and an increase in secondary market fee income.

Noninterest expense increased to $6.9 million in the fourth quarter of 2021, compared to $5.5 million in the fourth quarter of 2020. Higher commissions due to increased revenues in business lines, residual costs related to the core conversion and costs associated with the new Harrison branch contributed to the increase during the fourth quarter of 2021 compared to the fourth quarter a year ago. For the year 2021, noninterest expense totaled $25.3 million from $21.6 million in 2020. The increase for 2021 compared to the prior year reflected increased employee compensation due to the Company’s growth, as well as residual costs related to the core conversion.

Balance Sheet

Total assets increased 13.6% to $852.0 million at December 31, 2021, from $749.9 million at December 31, 2020, and decreased 1.6% compared to $866.1 million at September 30, 2021. Cash and cash equivalents increased to $45.7 million at December 31, 2021 from $23.0 million a year ago and decreased compared to $77.5 million at September 30, 2021. Investment securities increased to $80.6 million at December 31, 2021 from $73.1 million a year ago, as the Company actively moved cash balances into better yielding investment securities during the quarter.

Loans, net of allowance for loan losses, increased 12.7% to $685.4 million at December 31, 2021, compared to $608.4 million a year ago, and increased 3.6% compared to $661.7 million three months earlier.   Through the close of the first round of the PPP program on August 8, 2020, the Bank had funded approximately 274 PPP loans totaling $20.7 million to both existing and new customers.   Through the close of the second round of the PPP program on May 31, 2021, the Bank had funded approximately 159 PPP loans totaling $8.3 million. As of December 31, 2021, no PPP loans from round one, and $392,000 in PPP loans from round two, remained on the books.

Total deposits increased 15.7% to $726.2 million at December 31, 2021, compared to $627.8 million a year ago and decreased 1.8% compared to $739.7 million at September 30, 2021. Noninterest bearing deposits increased 34.8% to $231.8 million at December 31, 2021, compared to $172.0 million a year ago. New customer relationships, primarily with low cost checking accounts, continue to account for a majority of the deposit growth year-over-year.

FHLB advances totaled $12.3 million at December 31, 2021 from $17.1 million at December 31, 2020. Total stockholders’ equity increased 8.0% to $80.2 million at December 31, 2021, from $74.2 million at December 31, 2020 and increased 1.6% when compared to $78.9 million at September 30, 2021. Book value per common share was $80.77 at December 31, 2021 from $76.58 at December 31, 2020, and $81.47 at September 30, 2021.

Credit Quality

“We continue to be encouraged by the overall asset quality of our loan portfolio, and are working hard to maintain a moderate risk profile,” said Maland. “Additionally, we no longer had any loans on deferral at December 31, 2021, from the payment forbearance agreements we had made with some customers experiencing financial hardship at the early onset of the pandemic.”

Due to sound credit quality and a strong allowance for loan losses, the Company reported no provision for loan losses in both the fourth quarter of 2021 and the third quarter of 2021. This compared to a $458,000 provision for loan losses during the fourth quarter of 2020.  

Nonperforming loans totaled $221,000 at December 31, 2021. This compared to $149,000 in nonperforming loans at September 30, 2021, and no nonperforming loans at December 31, 2020. Nonperforming assets were $932,000 at December 31, 2021, compared to $149,000 at September 30, 2021, and no nonperforming assets at December 31, 2020. The increase year-over-year was primarily due to the addition of $711,000 to Other Real Estate Owned during the fourth quarter of 2021. This addition was for a single piece of property.

Total nonperforming assets were 0.11% of total assets at December 31, 2021, 0.02% at September 30, 2021, and 0.00% at December 31, 2020.

The allowance for loan losses was $8.2 million, or 1.18% of total loans, at December 31, 2021, compared to $8.7 million, or 1.42% of total loans, at December 31, 2020. Net loan charge-offs were $394,000 in the fourth quarter of 2021, compared to net loan charge-offs of $81,000 in the third quarter of 2021, and net loan charge-offs of $194,000 in the fourth quarter of 2020.

Capital

The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio estimate of 10.49%, Common equity Tier 1 capital ratio of 11.65%, Tier 1 risk-based capital ratio of 11.65% and Total capital ratio of 12.73%, at December 31, 2021.

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), trades on the OTCQX® Best Market.  

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.

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

WHITE RIVER BANCSHARES COMPANY
CONSOLIDATED BALANCE SHEETS
December 31, 2021, September 30, 2021 and December 31, 2020
UNAUDITED			December 31, 2021				September 30, 2021				December 31, 2020
ASSETS
Cash and due from banks			$	45,693,588			$	77,451,337			$	23,004,380
Federal funds sold				230,523				68,441				-
Total cash and cash equivalents				45,924,111				77,519,778				23,004,380
Investment securities				80,596,752				84,719,875				73,100,506
Loans held for sale				2,737,798				7,300,173				10,871,270
Loans, net of allowance for loan losses				685,383,789				661,748,201				608,391,471
Premises and equipment, net				26,902,610				25,202,545				25,140,669
Foreclosed assets held for sale				711,100				100				100
Accrued interest receivable				2,451,610				2,336,515				2,705,354
Deferred income taxes				1,967,775				1,899,258				1,518,115
Other investments				2,826,485				2,899,285				2,891,285
Other assets				2,453,776				2,507,609				2,320,711
			$	851,955,806			$	866,133,339			$	749,943,861
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand deposits		- non-interest bearing	$	231,800,711			$	263,531,523			$	172,016,886
		- interest bearing		284,979,694				254,579,040				203,407,688
Savings deposits				25,556,108				23,631,159				21,051,019
Time deposits	- under $250M			98,255,986				104,817,483				125,998,519
	- $250M and over			85,593,241				93,112,785				105,309,981
Total deposits				726,185,740				739,671,990				627,784,093
Federal Home Loan Bank advances				12,264,849				16,095,431				17,056,909
Notes payable				10,798,035				10,791,724				10,772,790
Accrued interest payable				175,835				352,228				382,474
Other liabilities				22,378,553				20,348,822				19,733,128
Total liabilities				771,803,012				787,260,195				675,729,394
Stockholders' equity:
Common stock				10,072				9,763				9,763
Surplus				88,475,229				88,181,971				88,010,761
Accumulated deficit				(7,907,902	)			(9,403,269	)			(14,474,203	)
Treasury stock, at cost				(563,128	)			(504,242	)			(431,865	)
Accumulated other comprehensive income				138,523				588,921				1,100,011
Total stockholders' equity				80,152,794				78,873,144				74,214,467
			$	851,955,806			$	866,133,339			$	749,943,861

WHITE RIVER BANCSHARES COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the three months ended December 31, 2021, September 30, 2021 and December 31, 2020
	For the Three Months Ended
UNAUDITED	December 31, 2021				September 30, 2021			December 31, 2020
Interest income:
Loans, including fees	$	7,997,979			$	7,726,879		$	7,463,396
Investment securities		365,232				397,755			331,474
Federal funds sold and other		12,300				5,428			3,392
Total interest income		8,375,511				8,130,062			7,798,262
Interest expense:
Deposits		734,370				801,145			1,326,327
Federal Home Loan Bank advances		83,504				100,671			103,809
Notes payable		167,874				167,874			167,745
Federal funds purchased and other		-				133			1,309
Total interest expense		985,748				1,069,823			1,599,190
Net interest income		7,389,763				7,060,239			6,199,072
Provision for loan losses		-				-			458,000
Net interest income after provision for loan losses		7,389,763				7,060,239			5,741,072
Non-interest income:
Service charges and fees on deposits		133,424				131,131			130,374
Wealth management fee income		584,577				574,074			474,031
Secondary market fee income		668,751				697,477			894,411
Loss on sales and write-downs of foreclosed assets		(194,831	)			-			(185,550	)
Other		335,564				288,553			192,133
Total non-interest income		1,527,485				1,691,235			1,505,399
Non-interest expense:
Salaries and benefits		4,684,822				4,111,369			3,641,192
Occupancy and equipment		708,879				702,058			684,502
Data processing		462,838				430,858			367,253
Marketing and business development		328,585				186,950			209,519
Professional services		396,947				487,428			433,752
Other		291,099				259,239			140,323
Total non-interest expense		6,873,170				6,177,902			5,476,541
Income before income taxes		2,044,078				2,573,572			1,769,930
Income tax provision		548,710				647,957			507,097
Net income	$	1,495,368			$	1,925,615		$	1,262,833
Basic earnings per common share	$	1.51			$	1.99		$	1.30
Diluted earnings per common share	$	1.50			$	1.99		$	1.30

WHITE RIVER BANCSHARES COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the twelve months ended December 31, 2021 and December 31, 2020
	For the Twelve Months Ended
UNAUDITED	December 31, 2021				December 31, 2020
Interest income:
Loans, including fees	$	31,270,541			$	30,822,168
Investment securities		1,464,323				1,362,508
Federal funds sold and other		33,155				113,365
Total interest income		32,768,019				32,298,041
Interest expense:
Deposits		3,435,404				6,582,286
Federal Home Loan Bank advances		389,540				442,947
Notes payable		671,496				667,766
Federal funds purchased and other		2,242				1,341
Total interest expense		4,498,682				7,694,340
Net interest income		28,269,337				24,603,701
Provision for loan losses		-				2,850,000
Net interest income after provision for loan losses		28,269,337				21,753,701
Non-interest income:
Service charges and fees on deposits		516,836				536,610
Wealth management fee income		2,225,782				1,783,243
Secondary market fee income		2,954,448				2,362,963
Loss on sales and write-downs of foreclosed assets		(194,831	)			(348,146	)
Other		1,085,970				657,331
Total non-interest income		6,588,205				4,992,001
Non-interest expense:
Salaries and benefits		16,659,978				14,602,278
Occupancy and equipment		2,638,300				2,631,996
Data processing		1,824,468				1,347,892
Marketing and business development		788,477				556,269
Professional services		2,183,452				1,558,348
Other		1,250,652				876,121
Total non-interest expense		25,345,327				21,572,904
Income before income taxes		9,512,215				5,172,798
Income tax provision		2,461,392				1,348,791
Net income	$	7,050,823			$	3,824,007
Basic earnings per common share	$	7.23			$	3.94
Diluted earnings per common share	$	7.23			$	3.94

White River Bancshares Company
Selected Financial Data						Three Months Ended
UNAUDITED		December 31, 2021				September 30, 2021				December 31, 2020
Selected Financial Condition Data: End of Period Balances
	Assets	$	851,955,806			$	866,133,339			$	749,943,861
	Investment Securities		80,596,752				84,719,875				73,100,506
	Loans, gross		696,346,007				677,666,588				627,948,824
	Allowance for Loan Losses		8,224,420				8,618,214				8,686,083
	Deposits		726,185,740				739,671,990				627,784,093
	FHLB Advances		12,264,849				16,095,431				17,056,909
	Notes Payable		10,798,035				10,791,724				10,772,790
	Common Shareholders' Equity		80,152,794				78,873,144				74,214,467
Selected Financial Condition Data: Average Balances
	Assets	$	849,391,347			$	802,375,174			$	735,449,136
	Earning Assets		812,165,799				770,104,265				705,226,210
	Investment Securities		83,364,483				87,309,682				71,221,639
	Loans, gross		690,968,859				664,338,877				616,463,713
	Deposits		719,642,908				677,137,238				612,098,458
	FHLB Advances		15,674,909				16,563,988				18,780,682
	Notes Payable		10,795,497				10,788,545				10,769,161
	Common Shareholders' Equity		79,246,636				77,961,111				73,485,866
Selected Operating Results:
	Interest Income	$	8,375,511			$	8,130,062			$	7,798,262
	Interest Expense		985,748				1,069,823				1,599,190
	Net Interest Income		7,389,763				7,060,239				6,199,072
	Provision for Loan Losses		-				-				458,000
	Net Interest Income After Provision for Loan Losses		7,389,763				7,060,239				5,741,072
	Noninterest Income		1,527,485				1,691,235				1,505,399
	Noninterest Expense		6,873,170				6,177,902				5,476,541
	Income Before Income Taxes		2,044,078				2,573,572				1,769,930
	Income Tax Provision		548,710				647,957				507,097
	Net Income	$	1,495,368			$	1,925,615			$	1,262,833
	Basic Net Income per Common Share	$	1.51			$	1.99			$	1.30
	Dividends Paid per Common Share		-				0.50				-
	Book Value Per Common Share		80.77				81.47				76.58
	Common Shares Outstanding		992,300				968,136				969,065
	Basic Weighted Average Common Shares Outstanding		992,965				968,946				969,069
Selected Ratios:
	Return on Average Assets		0.70	%			0.95	%			0.68	%
	Return on Average Common Shareholders' Equity		7.49	%			9.80	%			6.84	%
	Average Common Shareholders' Equity to Average Assets		9.33	%			9.72	%			9.99	%
	Net Interest Margin		3.61	%			3.64	%			3.50	%
	Efficiency		77.08	%			70.59	%			71.08	%
Selected Asset Quality:
	Net (Recoveries) Charge-offs	$	393,795			$	80,675			$	194,071
	Classified Assets		5,434,111				4,642,205				4,439,839
	Nonperforming Loans		220,616				148,557				-
	Nonperforming Assets		932,326				148,657				100
	Total Nonperforming Loans to Total Loans		0.03	%			0.02	%			0.00	%
	Total Nonperforming Loans to Total Assets		0.03	%			0.02	%			0.00	%
	Total Nonperforming Assets to Total Assets		0.11	%			0.02	%			0.00	%

FAQ

What was the net income for White River Bancshares Company (WRIV) in Q4 2021?

White River Bancshares Company reported a net income of $1.50 million in Q4 2021.

How much did the net income increase for WRIV in 2021?

The net income for WRIV increased by 84.4% in 2021, totaling $7.05 million.

What were the total deposits for WRIV at the end of 2021?

Total deposits for White River Bancshares Company were $726.2 million at December 31, 2021.

Did WRIV experience loan growth in 2021?

Yes, WRIV experienced a loan growth of 12.7% in 2021.

What is the significance of noninterest bearing deposits for WRIV?

Noninterest bearing deposits increased by 34.8% year-over-year, indicating strong customer relationships and a solid funding base.