SVB&T Corporation, Parent Company of Springs Valley Bank & Trust Company, Reports 2019 First Quarter Unaudited Earnings

Jasper – (NNDC)

SVB&T Corporation (OTCQX: SVBT), parent company of Springs Valley Bank & Trust Company, announced unaudited earnings for the three months ended March 31, 2019 of $683,000 or $1.22 earnings per share (EPS) – a 34.41% decrease compared to the first quarter 2018 EPS. First quarter earnings compares unfavorably in total dollars to 2018 earnings of $1.0 Million. This year to date (YTD) March 2019 performance translates to a return on average assets (ROAA) of 0.67%, compared to the same period 2018 of 1.09%.

Book value has risen by 2.70% to $74.66 per share at March 2019, compared to $72.70 per share at December 31, 2018. The SVB&T Corporation stock closed at $81.75 per share on April 29, 2019.

Total assets increased $18.9 Million to $419.9 Million at March 31, 2019, compared to December 31, 2018 assets of $401.0 Million. Total loans, including loans held for sale, before allowances increased $11.1 Million to $321.0 Million at March 31, 2019 from $309.9 Million at December 31, 2018. Total deposits increased $9.8 Million to $341.7 Million at March 31, 2019 from $331.9 Million at December 31, 2018.

Net interest income before provision expense for the three months ended March 31, 2019 was $3.3 Million compared to $3.2 Million for the same period 2018, an increase of $114,000. While earning assets grew (including an increased yield on earning assets) and therefore interest income increased by $567,000, the cost of funds increased by $453,000 due to using more wholesale funding along with a higher costs for funds as a result of increased competition for local deposits.

Total non-interest income increased $5,000 for the period ending March 31, 2019 from $1.3 Million over the same period 2018. The variance included an increase in sold loan income of $29,000, an increase in eBanking income of $12,000, and a nonrecurring gain on bond sales of $36,000. These increases were partially offset by the drop in value of the equity market at the end of 2018 which impacted Financial Advisory Group revenue negatively by $73,000 as the market took time to rebound in the first quarter of 2019.

“While first quarter net income was soft relative to one year ago, Management remains confident that Spring Valley’s bottom-line performance will rally as the year plays out,” stated President & CEO Jamie Shinabarger. “The cause for optimism rests in a handful of impactful and forward looking revenue (offensive) indicators: robust loan demand in the commercial lending space (commercial loan balance up 5.46% from year-end), continued strength in the housing sector (sold mortgage income is up 20.78% over the first quarter of 2018 fueled by low unemployment, historically affordable interest rates, and solid consumer confidence confidence), and a substantially stronger equities market through the first quarter, driven by solid business fundamentals (lower taxes, low interest rates, improved margins, and stronger demand), forecasts improved profitability from the Financial Advisory Group (formerly Trust Department).”

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