White River Bancshares Co. Earns $1.33 Million, or $1.34 Per Diluted Share, in Third Quarter 2022; Highlighted By Strong Quarterly Loan Growth and Net Interest Margin Expansion
10/18/2022 - 04:00 PM
FAYETTEVILLE, Ark., Oct. 18, 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 $1.33 million , or $1.34 per dilute share, in the third quarter of 2022, compared to $1.93 million , or $1.99 per diluted share, in the third quarter of 2021. In the immediate prior quarter, the Company earned $1.79 million , or $1.79 per diluted share. In the first nine months of 2022, net income was $4.19 million , or $4.22 per diluted share, compared to $5.56 million , or $5.73 per diluted share, in the first nine months of 2021. All financial results are unaudited.
“We’re very pleased with the progress we have made in the third quarter,” said Gary Head, President and Chief Executive Officer. “Our new markets in Harrison and Jonesboro are thriving, bringing the Signature level of service to parts of our state who have been searching for a more personalized approach to their community banking needs. The biggest news of the quarter, of course, was the grand opening of Banco Sí! in downtown Rogers. This new division of our organization is dedicated to serving the needs of our growing Hispanic and Latino population with a fully bilingual staff. As you might expect, our investments in these market expansions have impacted net income for the quarter, but they’re growing and thriving, making excellent progress.”
“Our shareholders will be pleased by the Board’s decision to double the annual cash dividend to $1.00 per share,” Head continued. “The continued success from our core markets and activities allows us to return some of our success to the shareholders who have believed in us since the beginning.”
“We continue to strengthen our core funding mix and as a results total deposits increased 7.0% compared to a year ago, with demand and non-interest bearing deposits representing 32.5% of total deposits and savings and interest bearing transaction accounts representing 44.7% 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 non-interest bearing and low-cost deposits and reduce our reliance on borrowed funds, contributing to the net interest margin expanding 23 basis points compared to the third quarter a year ago.”
Third Quarter 2022 Financial Highlights:
Third quarter net income was $1.33 million , or $1.34 per diluted share, compared to $1.93 million , or $1.99 per diluted share, in the third quarter of 2021. Third quarter net interest margin (“NIM”) expanded 23 basis points to 3.88% , compared to 3.65% in the third quarter a year ago. Annualized return on average assets was 0.58% , compared to 0.95% in the third quarter a year ago. Annualized return on average equity was 6.87% , from 9.80% in the third quarter a year ago. The Company recorded a $410,000 provision for loan losses in the third quarter of 2022, compared to no provision for loan losses in the third quarter of 2021. Net loans increased 17.9% to $780.5 million at September 30, 2022, compared to $661.7 million at September 30, 2021. Total deposits increased 7.0% to $791.5 million at September 30, 2022, compared to $739.7 million a year ago. Nonperforming assets totaled $153,000 , or 0.02% of total assets at September 30, 2022, compared to $149,000 , or 0.02% of total assets, at September 30, 2021. Book value per common share was $75.73 at September 30, 2022, from $81.47 a year ago. Total risk-based capital ratio was 13.57% and the Tier 1 leverage ratio was 11.53% for the Bank at September 30, 2022. The Company paid a $1.00 per share annual cash dividend on August 31, 2022 to shareholders of record at the close of business on July 20, 2022. Income Statement The Company’s NIM expanded 23 basis points to 3.88% in the third quarter of 2022, compared to 3.65% in the third quarter of 2021. In the first nine months of 2022, the NIM was 3.79% , compared to 3.68% in the first nine months of 2021.
“The changes we made in our investments and funding mix over the last several quarters, augmented by the recent Fed rate increases, resulted in net interest margin expansion during the third quarter. Our balance sheet remains well positioned to continue to benefit from additional Fed rate increases,” said Brant Ward, Chief Operating Officer.
Net interest income increased 21.1% to $8.6 million , compared to $7.1 million in the third quarter of 2021. Total interest income increased 20.2% to $9.8 million in the third quarter of 2022, compared to $8.1 million in the third quarter of 2021. Total interest expense increased by 14.2% to $1.2 million in the third quarter of 2022, from $1.1 million during the third quarter of 2021. In the first nine months of 2022, net interest income increased 15.3% to $24.1 million , compared to $20.9 million in the first nine months of 2021.
Noninterest income decreased 19.1% to $1.4 million in the third quarter of 2022, compared to $1.7 million in the third quarter a year ago. Lower wealth management fee income due to the volatility in the stock market, as well lower secondary market fee income contributed to the decline during the third quarter of 2022. In the first nine months of the year, noninterest income decreased 15.3% to $4.3 million , compared to $5.1 million in the first nine months of 2021.
Noninterest expense increased to $7.7 million in the third quarter of 2022, compared to $6.2 million in the third 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 third quarter of 2022, compared to the third quarter a year ago. In the first nine months of the year, noninterest expense increased to $22.3 million , compared to $18.5 million in the first nine months of 2021.
Balance Sheet Total assets increased 8.0% to $935.0 million at September 30, 2022, from $866.1 million at September 30, 2021, and increased 4.3% compared to $896.1 million at June 30, 2022. Cash and cash equivalents decreased to $16.5 million at September 30, 2022 from $77.5 million a year ago and decreased when compared to $50.6 million at June 30, 2022. Investment securities increased 12.3% to $95.2 million at September 30, 2022, from $84.7 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 17.9% to $780.5 million at September 30, 2022, compared to $661.7 million a year ago, and increased 10.0% compared to $709.3 million three months earlier.
“Loan growth was solid during the quarter, increasing 10.0% over the three-month period. Our team has done an excellent job with new loan originations, and the loan pipeline remains strong,” said Jeff Maland, Chief Risk Officer.
Total deposits increased 7.0% to $791.5 million at September 30, 2022, compared to $739.7 million a year ago and increased 1.7% compared to $778.1 million at June 30, 2022. New customer relationships continue to account for a majority of the deposit growth year-over-year.
FHLB advances increased during the quarter to $22.8 million at September 30, 2022, from $16.1 million at September 30, 2021. Total stockholders’ equity was $75.4 million at September 30, 2022, compared to $78.9 million at September 30, 2021, and $76.2 million at June 30, 2022. Tangible book value per common share was $75.73 at September 30, 2022, from $81.47 at September 30, 2021, and $76.61 at June 30, 2022. The decrease in total stockholders’ equity and tangible book value per share during the current quarter was primarily due to a $8.8 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 $84.58 at September 30, 2022.
Credit Quality “While asset quality remains exemplary, we recorded a $410,000 provision for loan losses due to the extraordinary levels of loan growth during the third quarter,” said Maland. “We continue to focus on maintaining a moderate risk profile, throughout all credit cycles.” This compared to no provision for loan losses in the second quarter of 2022, or the third quarter of 2021.
Nonperforming loans totaled $153,000 at September 30, 2022. This compared to $185,000 in nonperforming loans at June 30, 2022, and $149,000 in nonperforming loans at September 30, 2021. Nonperforming assets were $153,000 at September 30, 2022, compared to $185,000 at June 30, 2022, and $149,000 assets at September 30, 2021. Total nonperforming assets were 0.02% of total assets at September 30, 2022, June 30, 2022, and September 30, 2021.
The allowance for loan losses was $8.7 million , or 1.10% of total loans, at September 30, 2022, compared to $8.6 million , or 1.28% of total loans, at September 30, 2021. Net loan recoveries were $43,000 in the third quarter of 2022, compared to net loan recoveries of $50,000 in the second quarter of 2022, and net loan charge-offs of $81,000 in the third quarter of 2021.
Capital The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio estimate of 11.53% , Common equity Tier 1 capital ratio of 12.54% , Tier 1 risk-based capital ratio of 12.54% and Total capital ratio of 13.57% , at September 30, 2022.
On July 13, 2022, the Company issued $15 million in subordinated notes to certain qualified institutional accredited investors through a private placement offering. The Company intends to use the net proceeds from the offering for general corporate purposes.
Recent Developments Earlier this year, the Company launched a new market employing bilingual staff as it increased 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. The name Banco Sí! (meaning “Yes Bank” in Spanish) was chosen to send a positive message to the Latino community, which has historically been told ‘no’ where finances are concerned. During the third quarter of 2022, the initial market location opened in 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.”
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) September 30, 2022 June 30, 2022 September 30, 2021 ASSETS Cash and cash equivalents $ 16,452,466 $ 50,573,165 $ 77,519,778 Investment securities 95,169,822 95,838,246 84,719,875 Loans held for sale 1,682,618 850,823 7,300,173 Loans, net of allowance for loan losses 780,452,305 709,314,619 661,748,201 Premises and equipment, net 28,317,468 28,190,083 25,202,545 Foreclosed assets held for sale - - 100 Accrued interest receivable 2,804,238 2,277,196 2,336,515 Deferred income taxes 4,631,813 3,725,608 1,899,258 Other investments 3,226,173 3,112,208 2,899,285 Other assets 2,214,339 2,217,851 2,507,609 Total Assets $ 934,951,242 $ 896,099,799 $ 866,133,339 LIABILITIES & STOCKHOLDERS' EQUITY Deposits: Demand and non-interest-bearing $ 257,288,208 $ 264,120,048 $ 518,110,563 Savings and interest-bearing transaction accounts 354,185,035 338,840,798 23,631,159 Time deposits 179,985,925 175,145,169 197,930,268 Total deposits 791,459,168 778,106,015 739,671,990 Federal Home Loan Bank advances 22,769,235 10,851,757 16,095,431 Notes payable 25,385,663 10,810,660 10,791,724 Accrued interest payable 505,504 131,828 352,228 Other liabilities 19,477,404 19,973,364 20,348,822 Total Liabilities 859,596,974 819,873,624 787,260,195 Stockholders' equity: Common stock 10,039 10,039 9,763 Surplus 89,416,483 89,091,965 88,181,971 Accumulated deficit (4,708,340 ) (6,042,971 ) (9,403,269 ) Treasury stock, at cost (563,441 ) (563,441 ) (504,242 ) Accumulated other comprehensive (loss) income (8,800,473 ) (6,269,417 ) 588,921 Total stockholders' equity 75,354,268 76,226,175 78,873,144 Total Liabilities and Stockholders' Equity $ 934,951,242 $ 896,099,799 $ 866,133,339
WHITE RIVER BANCSHARES COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended September 30, June 30, September 30, 2022 2022 2021 Interest income: Loans, including fees $ 9,067,631 $ 8,539,519 $ 7,726,879 Investment securities 574,963 443,419 397,755 Federal funds sold and other 129,443 121,771 5,428 Total interest income 9,772,037 9,104,709 8,130,062 Interest expense: Deposits 781,647 642,622 801,145 Federal Home Loan Bank advances 70,336 58,483 100,671 Notes payable 362,254 167,874 167,874 Federal funds purchased and other 7,603 - 133 Total interest expense 1,221,840 868,979 1,069,823 Net interest income 8,550,197 8,235,730 7,060,239 Provision for loan losses 410,000 - - Net interest income after provision for loan losses 8,140,197 8,235,730 7,060,239 Non-interest income: Service charges and fees on deposits 136,156 123,432 131,131 Wealth management fee income 559,358 632,367 574,074 Secondary market fee income 231,012 397,351 697,477 Loss on sales and write-downs of foreclosed assets - 9,520 - Other non-interest income 442,391 414,046 288,553 Total non-interest income 1,368,917 1,576,716 1,691,235 Non-interest expense: Salaries and benefits 5,009,832 4,933,794 4,111,369 Occupancy and equipment 886,450 815,223 702,058 Data processing 577,219 517,583 430,858 Marketing and business development 320,613 382,409 186,950 Professional services 533,614 420,007 487,428 Other non-interest expense 320,179 357,930 259,239 Total non-interest expense 7,647,907 7,426,946 6,177,902 Income before income taxes 1,861,207 2,385,500 2,573,572 Income tax provision 526,576 600,433 647,957 Net income $ 1,334,631 $ 1,785,067 $ 1,925,615 Earnings per share: Basic $ 1.34 $ 1.79 $ 1.99 Diluted $ 1.34 $ 1.79 $ 1.99
WHITE RIVER BANCSHARES COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Nine Months Ended September 30, 2022 2021 Interest income: Loans, including fees $ 25,389,852 $ 23,272,562 Investment securities 1,400,298 1,099,091 Federal funds sold and other 277,233 20,855 Total interest income 27,067,383 24,392,508 Interest expense: Deposits 2,085,235 2,701,034 Federal Home Loan Bank advances 195,724 306,036 Notes payable 698,002 503,622 Federal funds purchased and other 7,603 2,242 Total interest expense 2,986,564 3,512,934 Net interest income 24,080,819 20,879,574 Provision for loan losses 410,000 - Net interest income after provision for loan losses 23,670,819 20,879,574 Non-interest income: Service charges and fees on deposits 389,702 383,412 Wealth management fee income 1,816,651 1,641,205 Secondary market fee income 1,030,612 2,285,697 Loss on sales and write-downs of foreclosed assets (151,480 ) - Other non-interest income 1,200,587 750,406 Total non-interest income 4,286,072 5,060,720 Non-interest expense: Salaries and benefits 14,583,074 11,975,156 Occupancy and equipment 2,464,542 1,929,421 Data processing 1,834,815 1,361,630 Marketing and business development 992,715 459,892 Professional services 1,418,768 1,786,505 Other non-interest expense 989,203 959,553 Total non-interest expense 22,283,117 18,472,157 Income before income taxes 5,673,774 7,468,137 Income tax provision 1,479,215 1,912,682 Net income $ 4,194,559 $ 5,555,455 Earnings per share: Basic $ 4.22 $ 5.73 Diluted $ 4.22 $ 5.73
WHITE RIVER BANCSHARES COMPANY SUPPLEMENTAL INFORMATION (Unaudited) (Audited) Three Months Ended Year ended September 30, June 30, September 30, December 31, 2022 2022 2021 2021 Earnings per share: Numerator: Net income available to common shareholders' $ 1,334,631 $ 1,785,067 $ 1,925,615 $ 7,050,823 Denominator: Weighted average common shares outstanding 994,996 994,996 968,946 975,058 Effect of dilutive securities: Stock options 691 499 - - Weighted average common shares outstanding - assuming dilution $ 995,687 $ 995,495 $ 968,946 $ 975,058 Basic earnings per common share $ 1.34 $ 1.79 $ 1.99 $ 7.23 Diluted earnings per common share $ 1.34 $ 1.79 $ 1.99 $ 7.23 Profitability: Numerator: Net income $ 1,334,631 $ 1,785,067 $ 1,925,615 $ 7,050,823 Denominator: Average total assets for period 908,692,882 887,698,554 802,375,174 806,437,028 Average total equity for period 77,112,599 77,135,728 77,961,111 77,002,249 Return on average assets 0.58 % 0.81 % 0.95 % 0.87 % Return on average equity 6.87 % 9.28 % 9.80 % 9.16 % Efficiency Ratio: Numerator: Net interest income $ 8,550,197 $ 8,235,730 $ 7,060,239 $ 28,269,337 Non-interest income 1,368,917 1,576,716 1,691,235 6,588,205 Total Income $ 9,919,114 $ 9,812,446 $ 8,751,474 $ 34,857,542 Denominator: Non-interest expense $ 7,647,907 $ 7,426,946 $ 6,177,902 $ 25,345,327 Efficiency ratio 77.10 % 75.69 % 70.59 % 72.71 % (Unaudited) (Audited) September 30, June 30, September 30, December 31, 2022 2022 2021 2021 Asset Quality: Net (recoveries) charge-offs $ (43,488 ) $ (49,997 ) $ 80,675 $ 461,663 Classified assets 411,636 484,483 4,642,205 5,434,111 Nonperforming loans 153,362 184,570 148,657 220,616 Nonperforming assets 153,362 184,570 148,657 932,326 Total nonperforming loans to total loans 0.02 % 0.03 % 0.02 % 0.03 % Total nonperforming loans to total assets 0.02 % 0.02 % 0.02 % 0.03 % Total nonperforming assets to total assets 0.02 % 0.02 % 0.02 % 0.11 %
WHITE RIVER BANCSHARES COMPANY INTEREST INCOME AND EXPENSE (Unaudited) Three Months Ended September 30, 2022 2021 Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate Interest-earning assets: Federal funds sold and other $ 23,960,268 $ 129,443 2.14 % $ 15,558,696 $ 5,428 0.14 % Investment securities 99,741,280 574,963 2.29 % 87,309,682 397,755 1.81 % Loans receivable (1) 750,079,728 9,067,631 4.80 % 664,338,877 7,726,879 4.61 % Total interest-earning assets 873,781,276 $ 9,772,037 4.44 % 767,207,255 $ 8,130,062 4.20 % Noninterest-earning assets 34,911,606 35,167,919 Total assets $ 908,692,882 $ 802,375,174 Interest-bearing liabilities: Interest-bearing deposits $ 534,033,840 $ 781,647 0.58 % $ 477,561,034 $ 801,145 0.67 % FHLB advances and federal funds purchased 13,285,949 77,939 2.33 % 16,563,988 100,804 2.41 % Notes payable 21,587,065 362,254 6.66 % 10,788,545 167,874 6.17 % Total interest-bearing liabilities 568,906,854 $ 1,221,840 0.85 % 504,913,567 $ 1,069,823 0.84 % Noninterest-bearing liabilities 262,673,429 218,119,671 Total liabilities 831,580,283 723,033,238 Stockholders' equity 77,112,599 77,961,111 Total liabilities and stockholders' equity $ 908,692,882 $ 800,994,349 Net interest-earning assets $ 304,874,422 $ 262,293,688 Net interest spread $ 8,550,197 3.58 % $ 7,060,239 3.36 % Net interest margin 3.88 % 3.65 % (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) Nine Months Ended September 30, 2022 2021 Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate Interest-earning assets: Federal funds sold and other $ 45,661,372 $ 277,233 0.81 % $ 28,487,448 $ 20,855 0.10 % Investment securities 91,227,775 1,400,298 2.05 % 77,965,654 1,099,091 1.88 % Loans receivable (1) 712,785,592 25,389,852 4.76 % 651,516,641 23,272,562 4.78 % Total interest-earning assets 849,674,739 $ 27,067,383 4.26 % 757,969,743 $ 24,392,508 4.30 % Noninterest-earning assets 35,352,522 32,687,728 Total assets $ 885,027,261 $ 790,657,471 Interest-bearing liabilities: Interest-bearing deposits $ 509,887,837 $ 2,085,235 0.55 % $ 476,704,627 $ 2,701,034 0.76 % FHLB advances and federal funds purchased 12,120,343 203,327 2.24 % 18,309,108 308,278 2.25 % Notes payable 14,438,191 698,002 6.46 % 10,781,999 503,622 6.25 % Total interest-bearing liabilities 536,446,371 $ 2,986,564 0.74 % 505,795,734 $ 3,512,934 0.93 % Noninterest-bearing liabilities 270,588,314 208,615,838 Total liabilities 807,034,685 714,411,572 Stockholders' equity 77,992,576 76,245,899 Total liabilities and stockholders' equity $ 885,027,261 $ 790,657,471 Net interest-earning assets $ 313,228,368 $ 252,174,009 Net interest spread $ 24,080,819 3.51 % $ 20,879,574 3.37 % Net interest margin 3.79 % 3.68 % (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.