SVB&T Corporation reports $1.54 earnings per share

SVB&T Corporation, parent company of Springs Valley Bank & Trust Company, reported unaudited earnings of $882,000, or $1.54 basic earnings per share, for first quarter 2016.

This compares to March 31, 2015, of $690,000 ($1.20 basic earnings per share), and translates to year to date return on average assets (ROAA) of 1.08 percent, return on average equity (ROAE) of 10.47 percent, and tangible capital ratio of 10.28 percent. Comparatively, at March 31, 2015 the bank’s ROAA, ROAE and tangible capital ratio were 0.99 percent, 8.83 percent and 11.25 percent, respectively.

The bank’s net interest margin (NIM) decreased slightly to 3.66 percent through March 31, 2016, as compared to year-end NIM of 3.74 percent. Total assets increased $7 million from year-end 2015 of $321 million, to $328 million at March 31, 2016. Total deposits increased $16 million to $256 million at March 31, 2016, from $240 million at December 31, 2015.

The bank was successful in managing margin compression in 2015, primarily due to our success in attracting a sizeable influx of low cost core deposits, much of which came from our Paoli Banking Center. That trend has slowed considerably in the first quarter of 2016.

The combination of aggressive pricing on solid loan credits and a slightly higher mix of time deposits on the liability side of the balance sheet resulted in slightly lower net interest income, accounting for the eight basis points in margin compression.

The bank reported total loans of $250 million at March 31, an increase of $3 million or 1.2 percent over December 31, 2016 and $51 million or 20.4 percent over the same period 2015.

“We’re off to an exceptional start for 2016 despite soft loan growth in the first quarter,” stated President and CEO Jamie Shinabarger. “In addition, most asset quality indicators continue to trend favorably which has potentially positive long-term implications for both the balance sheet and income statement.”