SVB&T Corporation, parent company of Springs Valley Bank & Trust Company, Declares Annual Dividend and announces September Year to Date 2018 Earnings
JASPER, IN / ACCESSWIRE / October 18, 2018 / SVB&T Corporation (OTCQX: SVBT), the parent company of Springs Valley Bank & Trust Company, has announced that the Corporation will pay an annual cash dividend of $0.95 per share to all shareholders of record as of November 14, 2018, payable on or about December 17, 2018. This is an 11.76% increase over the annual dividend paid in December 2017.
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The book value of SVB&T Corporation's stock was $70.91 per share as of September 30, 2018. The last reported trade of stock at the close of business on October 17, 2018 was $81.55 per share, and the number of outstanding shares was 558,865 as of the same date.
Net Income for the nine months ended September 30, 2018 increased by $514,000 or 16.49% to $3.1 million ($3.72 per diluted common share) over same period 2017.
Return on Average Assets (ROAA), Return on Average Equity (ROAE) and Capital Ratio remain very strong. This translates to YTD ROAA of 1.06%, ROAE of 10.85% and Tangible Capital Ratio of 9.92%. Comparatively, as of September 30, 2017 our YTD ROAA was 0.95%, ROAE was 9.66% and Tangible Capital Ratio was 9.82%.
For the 3rd quarter of 2018, SVB&T Corporation saw earnings of $900,000 decrease by (2.49)% over 3rd quarter 2017. Contributing to that decrease, SVB&T Corporation acquired $5 million in subordinated debt during the 3rd quarter of 2018. This led to a rise in Non-Interest Expense and a one-time fee expense associated with the subordinated debt. Of the $5 million in subordinated debt net proceeds to SVB&T Corporation, $4.5 million was passed down to the Bank in order to provide additional capital at the Bank level. Total Interest Income of $4.2 million, or 12.97% over the same period 2017, was partially offset by increasing cost of funds. This resulted in Net Interest Income of $3.2 million, increased by $139,000 or a 4.59% increase over the same period 2017.
SVB&T Corporation also saw a 7.56% increase in loans YTD over the same time period in 2017. Similarly, Net Interest Income shows a 4.74% increase YTD over September 2017.
President & CEO Jamie Shinabarger had this to say about SVB&T Corporation's move to OTCQX and overall shareholder value: "Management and the Board are delighted with the early response that we are receiving from both current and new shareholders to joining the OTCQX Market in mid-2018. The visibility, ease of transaction, and of course strong bottom-line profitability are all contributing factors to the success of our stock performance." For the nine month period ending September 30, 2018, the total return to shareholders was 26.62% (calculated by subtracting the December 31, 2017 book value of $65.23 from the closing market value on the OTCQX exchange at September 30, 2018 of $81.65 representing $16.42 per share in appreciation. In addition to appreciation, with the announced dividend of $0.95, a total dollar return equivalent over the period was $17.37 per share).
"The total return to shareholder is extremely significant in and of itself, but when viewed in the context of trades that consummated before joining the exchange - which routinely suffered an 'illiquidity discount' to book value by 10%-20% - the impact of joining the exchange is even more impressive in terms of maximizing shareholder value," Mr. Shinabarger added.
SVB&T Corporation is headquartered at 8482 West State Road 56, French Lick, Indiana 47432 with administrative offices at 1500 Main Street, Jasper, Indiana 47546. Springs Valley has two locations in both Dubois and Orange Counties. Its subsidiary, Springs Valley Bank & Trust Company, offers full-service bank and trust services. Springs Valley has products and services for all types of families and businesses, including checking and savings accounts, certificates of deposit, electronic services, online mortgage applications and a variety of other loan options. In addition, the company has a full-service trust department managed by experienced, talented professionals specializing in estate planning, tax planning and wealth management. Investment Services are also offered by a licensed, professional Springs Valley representative. More information can be found online at www.svbt.bank. The company's stock is traded on the OTCQX trading platform under ticker symbol SVBT (www.otcmarkets.com).
Information conveyed in this press release regarding SVB&T Corporation and its subsidiaries' anticipated future performance is forward-looking and therefore involves risks and uncertainties that could cause the results or developments to differ significantly from those indicated in these statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in general and local banking as well as mortgage conditions, competitive factors specific to markets in which the company and its subsidiaries operate, future interest rate levels, changes in local real estate markets, legislative and regulatory decisions or capital market conditions and other factors.
Springs Valley Bank is a member of FDIC and is an Equal Housing Lender.
CONTACT:
Darrell Blocker, dblocker@svbt.com
SOURCE: SVB&T Corporation
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