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, 2021September 30, 2021December 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  
UNAUDITEDDecember 31, 2021September 30, 2021December 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  
UNAUDITEDDecember 31, 2021December 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  
UNAUDITEDDecember 31, 2021September 30, 2021December 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%  

Primary Logo

Source: White River Bancshares

2022 GlobeNewswire, Inc., source Press Releases