White River Bancshares Co. Earns $1.79 Million, or $1.79 Per Diluted Share, in Second Quarter 2022; Second Quarter Results Highlighted By Strong Loan Growth and Net Interest Margin Expansion

Rhea-AI Summary

White River Bancshares Company (OTCQX: WRIV) reported net income of $1.79 million, or $1.79 per diluted share, for Q2 2022, down from $2.08 million in Q2 2021. Year-to-date net income was $2.9 million, compared to $3.6 million in 2021. Loan growth was strong at 10.2%, while total deposits increased by 13.4%. The company noted a 25% rise in non-interest bearing deposits, contributing to improved net interest margin (NIM) of 3.87%, up from 3.56% a year ago. However, overall income was impacted by reduced PPP income and increased expenses related to employee retention and new market expansions.

Positive

• Net interest income increased 20% to $8.2 million in Q2 2022.
• Loans increased 10.2% YoY to $709.3 million.
• Total deposits rose 13.4% YoY to $778.1 million.
• NIM expanded by 31 basis points to 3.87%.

Negative

• Net income decreased 13.9% YoY from $2.08 million in Q2 2021.
• Year-to-date net income fell 19.4% from $3.6 million in 2021.
• Noninterest expense rose 29.8% YoY to $7.4 million.

FAYETTEVILLE, Ark., July 14, 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 of $1.79 million, or $1.79 per dilute share, in the second quarter of 2022, compared to $2.08 million, or $2.14 per diluted share, in the second quarter of 2021. In the immediate prior quarter, the Company earned $1.07 million, or $1.08 per diluted share. In the first six months of 2022, net income was $2.9 million, or $2.88 per diluted share, compared to $3.6 million, or $3.75 per diluted share, in the first six months of 2021. All financial results are unaudited.

“Our results for the second quarter of 2022 were highlighted by an increase in net interest income generation and net interest margin expansion,” said Gary Head, President and Chief Executive Officer. “We generated double digit year-over-year growth in both loans and core deposits, in part due to new customer relationships from our existing market locations and new markets in Harrison and Jonesboro that opened earlier this year. As expected, net income for the second quarter was impacted by the reduction in PPP income when compared to the year ago quarter, as we continue to wind down from the unprecedented events of the pandemic. Results were also impacted by the investments we have made in employee retention and in our new market locations.   However, we are very encouraged with the progress these new locations are making, as both are exceeding our expectations for growth, and already contributing to operating revenue. We are also making advancements with our plans to enter a new market later this year with the recently formed division of Signature Bank of Arkansas, Banco Sí! This new division will employ bilingual staff as we increase our efforts to better serve Arkansas area Latinos.”

“We continue to strengthen our core funding mix with non-interest bearing deposits increasing 25.0% compared to a year ago, and representing 33.9% of total deposits at quarter end,” said Scott Sandlin, Chief Strategy Officer. “By building out our core deposit base, we are able to fund new loan activity with core deposits and reduce our reliance on borrowed funds, contributing to the net interest margin expanding 26 basis points compared to the second quarter a year ago.”

Second Quarter 2022 Financial Highlights:

• Second quarter net income was $1.79 million, or $1.79 per diluted share, compared to $2.08 million, or $2.14 per diluted share, in the second quarter of 2021.
• Annualized return on average assets was 0.81%, compared to 1.04% in the second quarter a year ago.
• Annualized return on average equity was 9.28%, from 10.95% in the second quarter a year ago.
• Second quarter net interest margin (“NIM”) expanded 31 basis points to 3.87%, compared to 3.56% in the second quarter a year ago.
• There was no provision for loan losses in the second quarter of 2022, or the second quarter of 2021.
• Net loans increased 10.2% to $709.3 million at June 30, 2022, compared to $643.6 million at June 30, 2021.  
• Total deposits increased 13.4% to $778.1 million at June 30, 2022, compared to $685.9 million a year ago.
• Noninterest bearing deposits increased 25.0% to $264.1 million at June 30, 2022, compared to $211.3 million a year ago.
• Nonperforming assets totaled $185,000, or 0.02% of total assets at June 30, 2022, compared to almost nil, or 0.00% of total assets, at June 30, 2021.
• Book value per common share was $76.61 at June 30, 2022, from $79.91 a year ago.
• Total risk-based capital ratio was 12.59% and the Tier 1 leverage ratio was 10.22% for the Bank at June 30, 2022.
  

Income Statement

The Company’s NIM expanded 31 basis points to 3.87% in the second quarter of 2022, compared to 3.56% in the second quarter of 2021. In the first six months of 2022, the NIM was 3.72%, compared to 3.69% in the first six months of 2021.

“The changes we made in our investments and funding mix over the last several quarters continue to reduce our dependency on brokered CDs, internet CDs and Federal Home Loan Bank (“FHLB”) advances, and resulted in significant net interest margin expansion during the second quarter. Our balance sheet remains well positioned to continue to benefit from any additional Fed rate increases,” said Brant Ward, Chief Operating Officer.

Net interest income increased 20.0% to $8.2 million, compared to $6.9 million in the second quarter of 2021. Total interest income increased 13.4% to $9.1 million in the second quarter of 2022, compared to $8.0 million in the second quarter of 2021. Total interest expense decreased by 25.5% to $869,000 in the second quarter of 2022, from $1.2 million during the second quarter of 2021.   In the first six months of 2022, net interest income increased 12.4% to $15.5 million, compared to $13.8 million in the first six months of 2021.

Noninterest income was $1.6 million in the second quarter of 2022, which was unchanged compared to the second quarter a year ago. Higher wealth management fee income was offset by lower secondary market fee income during the second quarter of 2022.   In the first six months of the year, noninterest income decreased 13.4% to $2.9 million, compared to $3.4 million in the first six months of 2021.

Noninterest expense increased to $7.4 million in the second quarter of 2022, compared to $5.7 million in the second quarter of 2021. Higher commissions due to increased revenues in business lines, residual costs related to the core conversion and costs associated with the two new markets contributed to the increase during the second quarter of 2022, compared to the second quarter a year ago.   In the first six months of the year, noninterest expense increased to $14.6 million, compared to $12.3 million in the first six months of 2021.

Balance Sheet

Total assets increased 10.5% to $896.1 million at June 30, 2022, from $810.7 million at June 30, 2021, and increased modestly compared to $895.6 million at March 31, 2022. Cash and cash equivalents increased to $50.6 million at June 30, 2022 from $40.9 million a year ago and decreased when compared to $90.3 million at March 31, 2022. Investment securities increased to $95.8 million at June 30, 2022, from $87.7 million a year ago, as the Company continued to move cash balances into better yielding investment securities during the quarter.

Loans, net of allowance for loan losses, increased 10.2% to $709.3 million at June 30, 2022, compared to $643.6 million a year ago, and increased 4.2% compared to $680.4 million three months earlier.  

“Loan growth was robust during the quarter, increasing 4.2% over the three-month period, or 16.8% annualized. Our team has done an excellent job with new loan originations, and we anticipate this trend to continue with strong demand for 1-4 family loans,” said Jeff Maland, Chief Risk Officer.

Total deposits increased 13.4% to $778.1 million at June 30, 2022, compared to $685.9 million a year ago and increased modestly compared to $776.7 million at March 31, 2022. Noninterest bearing deposits increased 25.0% to $264.1 million at June 30, 2022, compared to $211.3 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 continue to decline, totaling $10.9 million at June 30, 2022, from $16.8 million at June 30, 2021. Total stockholders’ equity was $76.2 million at June 30, 2022, compared to $77.4 million at June 30, 2021, and $78.0 million at March 31, 2022. Tangible book value per common share was $76.61 at June 30, 2022, from $79.91 at June 30, 2021, and $78.61 at March 31, 2022. The decrease in total stockholders’ equity and tangible book value per share during the current quarter was primarily due to a $6.3 million decrease in accumulated other comprehensive income (“AOCI”) related primarily to an increase in the unrealized loss on available for sale securities reflecting the increase in interest rates during the current quarter. Excluding AOCI, tangible book value per share was $82.91 at June 30, 2022.

Credit Quality

“Asset quality remains strong, and we continue to focus on maintaining a moderate risk profile,” said Maland. Due to sound credit quality and a strong allowance for loan losses, the Company reported no provision for loan losses in the second quarter of 2022, the first quarter of 2022, or the second quarter of 2021.

Nonperforming loans totaled $185,000 at June 30, 2022. This compared to $114,000 in nonperforming loans at March 31, 2022, and no nonperforming loans at June 30, 2021. Nonperforming assets were $185,000 at June 30, 2022, compared to $664,000 at March 31, 2022, and no nonperforming assets at June 30, 2021. Total nonperforming assets were 0.02% of total assets at June 30, 2022, 0.07% at March 31, 2022, and 0.00% at June 30, 2021.

The allowance for loan losses was $8.3 million, or 1.15% of total loans, at June 30, 2022, compared to $8.7 million, or 1.35% of total loans, at June 30, 2021. Net loan recoveries were $50,000 in the second quarter of 2022, compared to net loan recoveries of $11,000 in the first quarter of 2022, and net loan recoveries of $3,000 in the second quarter of 2021.

Capital

The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio estimate of 10.22%, Common equity Tier 1 capital ratio of 11.54%, Tier 1 risk-based capital ratio of 11.54% and Total capital ratio of 12.59%, at June 30, 2022.

Recent Developments

Earlier this year, the Company announced plans to launch a new market employing bilingual staff as it increases its efforts to better serve Arkansas area Latinos. Banco Sí!, a recently formed division of Signature Bank of Arkansas, will focus on a growing segment of the population who feels underserved by traditional banks. The name Banco Sí! (meaning “Yes Bank” in Spanish) was chosen to send a positive message to the Latino community, who has historically been told ‘no’ where finances are concerned. The initial market location is planned for downtown Rogers in a historic building at 114 S. First St.

“The Latino community has grown to become the largest minority community in the region and the United States, and we believe it is underserved,” said Ward. “Our mission is to create economic growth and access to banking services, capital, and funds for small and midsize businesses that traditionally have not had access in the past.”

During the first quarter of 2022, the Company opened its seventh market, located at 111 East Jackson Avenue in Jonesboro. This facility will serve as a temporary location for the market and marks the Company’s entry into Craighead County. According to the 2020 Census, Jonesboro had a population of 78,576 and is the fifth-largest city in Arkansas.

During the fourth quarter of 2021, the Company opened its sixth market, located in Harrison in the Durand Center at 303 N. Main Street, Suite 100. 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/

About White River Bancshares Company

White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas, headquartered in Fayetteville, Arkansas. The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers, Brinkley, Harrison and Jonesboro, 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.

Recently, the Company has expanded into Northeast Arkansas, with new markets in Jonesboro and Harrison. Jonesboro, located in Craighead County, is a city located on Crowley's Ridge in the northeastern corner of Arkansas. It is the home of Arkansas State University and the cultural and economic center of Northeast Arkansas. Jonesboro also houses the region’s hospital network. U.S. Steel Corp. announced in January 2022 that it would locate a new $3 billion steel factory in Northeast Arkansas in Osceola, a move expected to create 900 jobs with an average pay over $100,000 annually, making it the largest capital investment project in Arkansas history. Dubbed “Project Blueprint,” the steel mill will begin construction in early 2022. Harrison sits below Branson, Missouri, which is a family tourist destination and outdoor recreation, and is well known as an entertainment destination.

The Company currently operates two markets in Washington County, two markets in Benton County, two markets in Monroe County, one market in Boone County and one market in Craighead County.

The housing market in Washington and Benton counties remains robust. According to the Northwest Multiple Listing Service, the average home in Washington County sold for $348,000, up 28.2% in February 2022, compared to a year ago, with an average of 76 days on the market. For Benton County, the average house sold for $363,000, up 12.9% from a year ago with an average of 69 days on the market.

Washington County’s population is projected to grow 4.52% from 2022 through 2027, and median household income is projected to increase by 8.35% during the same time frame. Benton County’s population is projected to grow 5.89% from 2022 through 2027, and median household income is projected to increase by 11.08%. Monroe County’s population is projected to decrease by 7.25% from 2022 through 2027 and median household income is projected to increase by 11.05%. Boone County’s population is projected to grow 0.37% from 2022 through 2027 and median household income is projected to increase by 12.48%. Craighead County’s population is projected to grow 4.13% from2022 through 2027, and the median household income is projected to increase by 4.13%.

Sources:

http://www.nwarealtors.org/market-statistics/
https://www.capitaliq.spglobal.com/

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 (Unaudited)
		June 30, 2022				March 31, 2022				June 30, 2021
ASSETS
Cash and cash equivalents		$	50,573,165			$	90,266,129			$	40,901,895
Investment securities			95,838,246				85,467,563				87,703,034
Loans held for sale			850,823				1,071,950				4,754,632
Loans, net of allowance for loan losses			709,314,619				680,309,888				643,628,102
Premises and equipment, net			28,190,083				27,647,249				24,531,056
Foreclosed assets held for sale			-				550,100				100
Accrued interest receivable			2,277,196				2,122,175				2,171,138
Deferred income taxes			3,725,608				2,907,803				1,863,572
Other investments			3,112,208				3,201,021				2,896,985
Other assets			2,217,851				2,085,714				2,288,891
Total Assets		$	896,099,799			$	895,629,592			$	810,739,405
LIABILITIES & STOCKHOLDERS' EQUITY
Deposits:
Demand and non-interest-bearing		$	264,120,048			$	264,274,031			$	211,286,665
Savings and interest-bearing transaction accounts			338,840,798				327,938,288				273,230,907
Time deposits			175,145,169				184,455,754				201,376,123
Total deposits			778,106,015				776,668,073				685,893,695
Federal Home Loan Bank advances			10,851,757				10,933,627				16,843,983
Notes payable			10,810,660				10,804,347				10,785,412
Accrued interest payable			131,828				305,509				227,688
Other liabilities			19,973,364				18,917,083				19,555,885
Total Liabilities			819,873,624				817,628,639				733,306,663
Stockholders' equity:
Common stock			10,039				10,012				9,763
Surplus			89,091,965				88,767,186				88,115,762
Accumulated deficit			(6,042,971	)			(6,833,041	)			(10,844,363	)
Treasury stock, at cost			(563,441	)			(563,441	)			(433,365	)
Accumulated other comprehensive (loss) income			(6,269,417	)			(3,379,763	)			584,945
Total stockholders' equity			76,226,175				78,000,953				77,432,742
Total Liabilities and Stockholders' Equity		$	896,099,799			$	895,629,592			$	810,739,405

WHITE RIVER BANCSHARES COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		For the Three Months Ended
		June 30,			March 31,				June 30,
		2022				2022			2021
Interest income:
Loans, including fees		$	8,539,519		$	7,782,702			$	7,686,752
Investment securities			443,419			381,916				335,534
Federal funds sold and other			121,771			26,019				10,044
Total interest income			9,104,709			8,190,637				8,032,330
Interest expense:
Deposits			642,622			660,966				897,065
Federal Home Loan Bank advances			58,483			66,905				101,616
Notes payable			167,874			167,874				167,874
Federal funds purchased and other			-			-				-
Total interest expense			868,979			895,745				1,166,555
Net interest income			8,235,730			7,294,892				6,865,775
Provision for loan losses			-			-				-
Net interest income after provision for loan losses			8,235,730			7,294,892				6,865,775
Non-interest income:
Service charges and fees on deposits			123,432			130,114				126,017
Wealth management fee income			632,367			624,926				561,092
Secondary market fee income			397,351			402,249				666,363
Loss on sales and write-downs of foreclosed assets			9,520			(161,000	)			-
Other non-interest income			414,046			344,150				280,525
Total non-interest income			1,576,716			1,340,439				1,633,997
Non-interest expense:
Salaries and benefits			4,933,794			4,639,448				3,831,206
Occupancy and equipment			815,223			762,869				583,330
Data processing			517,583			740,013				344,373
Marketing and business development			382,409			289,693				203,134
Professional services			420,007			465,147				362,274
Other non-interest expense			357,930			311,094				356,396
Total non-interest expense			7,426,946			7,208,264				5,680,713
Income before income taxes			2,385,500			1,427,067				2,819,059
Income tax provision			600,433			352,206				742,044
Net income		$	1,785,067		$	1,074,861			$	2,077,015
Earnings per share:
Basic		$	1.79		$	1.08			$	2.14
Diluted		$	1.79		$	1.08			$	2.14

WHITE RIVER BANCSHARES COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Six Months Ended
	June 30,
		2022				2021
Interest income:
Loans, including fees	$	16,322,221			$	15,545,683
Investment securities		825,335				701,336
Federal funds sold and other		147,790				15,427
Total interest income		17,295,346				16,262,446
Interest expense:
Deposits		1,303,588				1,899,889
Federal Home Loan Bank advances		125,388				205,365
Notes payable		335,748				335,748
Federal funds purchased and other		-				2,109
Total interest expense		1,764,724				2,443,111
Net interest income		15,530,622				13,819,335
Provision for loan losses		-				-
Net interest income after provision for loan losses		15,530,622				13,819,335
Non-interest income:
Service charges and fees on deposits		253,546				252,281
Wealth management fee income		1,257,293				1,067,131
Secondary market fee income		799,600				1,588,220
Loss on sales and write-downs of foreclosed assets		(151,480	)			-
Other non-interest income		758,196				461,853
Total non-interest income		2,917,155				3,369,485
Non-interest expense:
Salaries and benefits		9,573,242				7,863,787
Occupancy and equipment		1,578,092				1,227,363
Data processing		1,257,596				930,772
Marketing and business development		672,102				272,942
Professional services		885,154				1,299,077
Other non-interest expense		669,024				700,314
Total non-interest expense		14,635,210				12,294,255
Income before income taxes		3,812,567				4,894,565
Income tax provision		952,639				1,264,725
Net income	$	2,859,928			$	3,629,840
Earnings per share:
Basic	$	2.88			$	3.75
Diluted	$	2.88			$	3.75

WHITE RIVER BANCSHARES COMPANY SUPPLEMENTAL INFORMATION
		(Unaudited)												(Audited)
		Three Months Ended												Year ended
		June 30,				March 31,				June 30,				December 31,
			2022				2022				2021				2021
Earnings per share:
Numerator:
Net income available to common shareholders'		$	1,785,067			$	1,074,861			$	2,077,015			$	7,050,823
Denominator:
Weighted average common shares outstanding			994,996				992,299				969,060				975,058
Effect of dilutive securities:
Stock options			499				470				-				-
Weighted average common shares
outstanding - assuming dilution		$	995,495			$	992,769			$	969,060			$	975,058
Basic earnings per common share		$	1.79			$	1.08			$	2.14			$	7.23
Diluted earnings per common share		$	1.79			$	1.08			$	2.14			$	7.23
Profitability:
Numerator:
Net income		$	1,785,067			$	1,074,861			$	2,077,015			$	7,050,823
Denominator:
Average total assets for period			887,698,554				861,905,507				804,426,762				806,437,028
Average total equity for period			77,135,728				79,758,478				76,082,454				77,002,249
Return on average assets			0.81	%			0.51	%			1.04	%			0.87	%
Return on average equity			9.28	%			5.47	%			10.95	%			9.16	%
Efficiency Ratio:
Numerator:
Net interest income		$	8,235,730			$	7,294,892			$	6,865,775			$	28,269,337
Non-interest income			1,576,716				1,340,439				1,633,997				6,588,205
Total Income		$	9,812,446			$	8,635,331			$	8,499,772			$	34,857,542
Denominator:
Non-interest expense		$	7,426,946			$	7,208,264			$	5,680,713			$	25,345,327
Efficiency ratio			75.69	%			83.47	%			66.83	%			72.71	%
		(Unaudited)												(Audited)
		June 30,				March 31,				June 30,				December 31,
			2022				2022				2021				2021
Asset Quality:
Net (recoveries) charge-offs		$	(49,997	)		$	(10,567	)		$	(3,076	)		$	461,663
Classified assets			484,483				1,080,354				4,339,548				5,434,111
Nonperforming loans			184,570				113,616				-				220,616
Nonperforming assets			184,570				663,716				100				932,326
Total nonperforming loans to total loans			0.03	%			0.02	%			0.00	%			0.03	%
Total nonperforming loans to total assets			0.02	%			0.01	%			0.00	%			0.03	%
Total nonperforming assets to total assets			0.02	%			0.07	%			0.00	%			0.11	%

WHITE RIVER BANCSHARES COMPANY INTEREST INCOME AND EXPENSE (Unaudited)
			Three Months Ended June 30,
			2022									2021
			Average						Average			Average						Average
			Balance			Interest			Yield/Rate			Balance			Interest			Yield/Rate
Interest-earning assets:
Federal funds sold and other			$	62,514,372		$	121,771		0.78	%		$	47,437,924		$	10,044		0.08	%
Investment securities				94,260,851			443,419		1.89	%			75,797,411			335,534		1.78	%
Loan receivable (1)				697,638,767			8,539,519		4.91	%			650,413,942			7,686,752		4.74	%
Total interest-earning assets				854,413,990		$	9,104,709		4.27	%			773,649,277		$	8,032,330		4.16	%
Noninterest-earning assets				33,284,564									30,777,485
Total assets			$	887,698,554								$	804,426,762
Interest-bearing liabilities:
Interest-bearing deposits			$	506,565,372		$	642,622		0.51	%		$	483,238,851		$	897,065		0.74	%
FHLB advances & Fed Funds Purchased				10,879,395			58,483		2.16	%			16,880,488			101,616		2.41	%
Notes payable				10,807,745			167,874		6.23	%			10,782,153			167,874		6.24	%
Total interest-bearing liabilities				528,252,512		$	868,979		0.66	%			510,901,492		$	1,166,555		0.92	%
Noninterest-bearing liabilities				282,310,314									217,442,816
Total liabilities				810,562,826									728,344,308
Stockholders' equity				77,135,728									76,082,454
Total liabilities and stockholders' equity			$	887,698,554								$	804,426,762
Net interest-earning assets			$	326,161,478								$	262,747,785
Net interest spread						$	8,235,730		3.61	%					$	6,865,775		3.25	%
Net interest margin									3.87	%								3.56	%
(1)			Origination fee income and costs are generally recognized in earnings when incurred which, in our opinion does not produce results that differ materially from recognizing the fees and costs over the life of the loan as required by GAAP.

WHITE RIVER BANCSHARES COMPANY INTEREST INCOME AND EXPENSE (Unaudited)
			Six Months Ended June 30,
				2022									2021
			Average						Average			Average						Average
			Balance			Interest			Yield/Rate			Balance			Interest			Yield/Rate
Interest-earning assets:
Federal funds sold and other			$	56,691,768		$	147,790		0.53	%		$	37,951,724		$	15,427		0.08	%
Investment securities				90,422,018			825,335		1.84	%			73,216,203			701,336		1.93	%
Loan receivable (1)				693,829,458			16,322,221		4.74	%			644,939,642			15,545,683		4.86	%
Total interest-earning assets				840,943,244		$	17,295,346		4.15	%			756,107,569		$	16,262,446		4.34	%
Noninterest-earning assets				33,687,594									30,560,913
Total assets			$	874,630,838								$	786,668,482
Interest-bearing liabilities:
Interest-bearing deposits			$	504,926,819		$	1,303,588		0.52	%		$	476,269,326		$	1,899,889		0.80	%
FHLB advances & Fed Funds Purchased				11,527,880			125,388		2.19	%			19,919,473			207,474		2.10	%
Notes payable				10,804,509			335,748		6.27	%			10,778,671			335,748		6.28	%
Total interest-bearing liabilities				527,259,208		$	1,764,724		0.67	%			506,967,470		$	2,443,111		0.97	%
Noninterest-bearing liabilities				268,931,772									204,326,933
Total liabilities				796,190,980									711,294,403
Stockholders' equity				78,439,858									75,374,079
Total liabilities and stockholders' equity			$	874,630,838								$	786,668,482
Net interest-earning assets			$	313,684,036								$	249,140,099
Net interest spread						$	15,530,622		3.47	%					$	13,819,335		3.37	%
Net interest margin									3.72	%								3.69	%
(1)			Origination fee income and costs are generally recognized in earnings when incurred which, in our opinion does not produce results that differ materially from recognizing the fees and costs over the life of the loan as required by GAAP.

Contact:

Scott Sandlin, Chief Strategy Officer 479-684-3754

FAQ

What are the latest earnings results for White River Bancshares Company (WRIV)?

For Q2 2022, WRIV reported net income of $1.79 million, down from $2.08 million in Q2 2021.

How did loan growth perform for WRIV in Q2 2022?

WRIV experienced robust loan growth of 10.2%, totaling $709.3 million at the end of June 2022.

What is the projected outlook for White River Bancshares Company (WRIV)?

While WRIV saw strong loan growth and deposit increases, net income decline signals potential challenges ahead, especially with rising expenses.

What was the net interest margin for WRIV in Q2 2022?

The net interest margin for WRIV expanded to 3.87% in Q2 2022, up from 3.56% in the same quarter last year.