White River Bancshares Co. Earns $779,000, or $0.78 Per Diluted Share, in Second Quarter 2023; Results Highlighted by Strong Loan and Deposit Growth
07/17/2023 - 09:00 AM
FAYETTEVILLE, Ark., July 17, 2023 (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 $779,000 , or $0.78 per diluted share, in the second quarter of 2023, compared to $1.79 million , or $1.79 per diluted share, in the second quarter of 2022. In the immediate prior quarter, the Company earned $340,000 , or $0.34 per diluted share. In the first six months of 2023, net income was $1.12 million , or $1.12 per diluted share, compared to $2.86 million , or $2.88 per diluted share, in the first six months of 2022. All financial results are unaudited.
“Our second quarter results are a reflection of strength in our loan growth, capital levels and credit quality metrics,” said Gary Head, Chairman and Chief Executive Officer. “The strategic expansions of our brand in Harrison, Jonesboro, and the Northwest Arkansas bilingual community through Banco Sí are paying dividends to our balance sheet -literally- contributing to 21.7% loan growth and 14.2% deposit growth year over year. These results were especially rewarding given the current high-rate environment. The unprecedented rise in funding costs impacted our operating results for the quarter, but we believe our new market locations will continue to have meaningful contributions to our earnings in the years ahead as we continue reaching new customers.”
“We have been very deliberate in our deposit gathering strategies, and entered these new markets in 2022 with the goal of building out our deposit base to fund new loan activity,” said Scott Sandlin, Chief Strategy Officer. “While rising rates have driven customers to higher yielding deposit accounts, demand and non-interest-bearing deposits remained strong at 27.4% of total deposits and savings and interest-bearing transaction accounts represented 35.4% of total deposits at June 30, 2023. In addition, we are focused on strengthening our loan to deposit ratio, which was 97% at June 30, 2023. New customer relationships are fueling loan and deposit growth and we expect that to continue as we grow into our new market locations.”
Second Quarter 2023 Financial Highlights:
Second quarter net income was $779,000 , or $0.78 per diluted share, compared to $1.79 million , or $1.79 per diluted share, in the second quarter of 2022. Second quarter net interest margin (“NIM”) was 3.02% , compared to 3.87% in the second quarter a year ago. The Company recorded a $225,000 provision for credit losses in the second quarter of 2023, compared to no provision in the second quarter of 2022. Net loans increased 21.7% to $863.5 million at June 30, 2023, compared to $709.3 million at June 30, 2022. Nonperforming assets totaled $93,000 , or 0.01% of total assets at June 30, 2023, compared to $185,000 , or 0.02% of total assets, at June 30, 2022. Total deposits increased 14.2% to $888.2 million at June 30, 2023, compared to $778.1 million a year ago. Core deposits (demand and non-interest-bearing, and savings and interest-bearing transaction accounts) represent 62.8% of total deposits at June 30, 2023. The Bank’s uninsured deposits totaled approximately 30.4% of total deposits at June 30, 2023, unchanged compared to March 31, 2023. Available borrowing capacity totaled $364.8 million at June 30, 2023, compared to $325.1 million at March 31, 2023. Total risk-based capital ratio was 12.74% and the Tier 1 leverage ratio was 10.03% for the Bank at June 30, 2023. Tangible book value per common share was $74.36 at June 30, 2023, compared to $76.40 a year ago. Income Statement
“The rising cost of funds outpaced earning asset yields, resulting in net interest margin contraction during the second quarter,” said Brant Ward, President. The Company’s NIM was 3.02% in the second quarter of 2023, compared to 3.87% in the second quarter of 2022, and 3.16% in the first quarter of 2023. In the first six months of 2023, the NIM was 3.10% , compared to 3.72% in the first six months of 2022.
Net interest income was $7.4 million , compared to $8.2 million in the second quarter of 2022. Total interest income increased 37.5% to $12.5 million in the second quarter of 2023, compared to $9.1 million in the second quarter of 2022. Largely due to the increase in deposit costs, total interest expense increased to $5.1 million in the second quarter of 2023, from $869,000 in the second quarter of 2022. In the first six months of 2023, net interest income was $14.9 million , compared to $15.5 million in the first six months of 2022.
Noninterest income decreased 8.4% to $1.4 million in the second quarter of 2023, compared to $1.6 million in the second quarter a year ago. Substantially lower secondary market fee income contributed to the decline during the second quarter of 2023. In the first six months of the year, noninterest income decreased 8.4% to $2.7 million , compared to $2.9 million in the first six months of 2022.
Noninterest expense increased 2.3% to $7.6 million in the second quarter of 2023, compared to $7.4 million in the second quarter of 2022. Costs associated with the three new markets contributed to the increase during the second quarter of 2023, compared to the second quarter a year ago. Full time equivalent employees increased to 203 at June 30, 2023, from 186 at June 30, 2022. In the first six months of the year, noninterest expense increased to $15.8 million , compared to $14.6 million in the first six months of 2022.
Balance Sheet
Total assets increased 17.7% to a record $1.05 4 billion at June 30, 2023, from $896.1 million at June 30, 2022, and decreased 2.3% compared to $1.08 0 billion at March 31, 2023. Cash and cash equivalents totaled $32.3 million at June 30, 2023, compared to $50.6 million a year ago. Investment securities totaled $98.5 million at June 30, 2023, from $95.8 million a year ago.
Loans, net of allowance for credit losses, increased 21.7% to $863.5 million at June 30, 2023, compared to $709.3 million a year ago, and increased 2.9% compared to $838.9 million three months earlier.
Total deposits increased 14.2% to $888.2 million at June 30, 2023, compared to $778.1 million a year ago and decreased modestly compared to $890.8 million at March 31, 2023. Time deposits account for the majority of the deposit growth year-over-year.
FHLB advances increased to $38.0 million at June 30, 2023, from $10.9 million at June 30, 2022, and decreased substantially compared to $64.1 million at March 31, 2023. Total stockholders’ equity was $76.2 million at June 30, 2023, which was unchanged compared to June 30, 2022 and a modest decrease compared to $77.6 million at March 31, 2023. Tangible book value per common share was $74.36 at June 30, 2023, from $76.40 at June 30, 2022, and $77.76 at March 31, 2023. The decrease in total stockholders’ equity and tangible book value per share at June 30, 2023 compared to a year ago was primarily due to a $1.8 million decrease in accumulated other comprehensive income (“AOCI”) related 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 June 30, 2023.
Credit Quality
“Asset quality remains pristine, as we remain focused on adhering to conservative underwriting standards in all credit cycles,” said Jeff Maland, Chief Risk Officer.
Beginning January 1, 2023, the Company adopted the Current Expected Credit Losses (“CECL”) methodology, which replaced the former “incurred loss” model for recognizing credit losses with an “expected loss” model. Utilizing CECL may have an impact on the Company’s allowance for credit losses going forward and may result in a lack of comparability between 2023 and 2022 quarterly periods.
The Company recorded a $225,000 provision for credit losses in the second quarter of 2023. This compared to a $150,000 provision in the first quarter of 2023, and no provision in the second quarter of 2022.
Nonperforming assets totaled $93,000 , and represented only 0.01% of total assets at June 30, 2023, compared to $124,000 , or 0.01% at March 31, 2023. Nonperforming assets totaled $185,000 , or 0.02% of total assets a year ago.
The allowance for credit losses was $10.6 million , or 1.21% of total loans, at June 30, 2023, compared to $10.4 million , or 1.22% of total loans, at March 31, 2023, and $8.3 million , or 1.15% of total loans, at June 30, 2022. Net loan recoveries were $12,000 in the second quarter of 2023, compared to net loan recoveries of $66,000 in the first quarter of 2023, and net loan recoveries of $50,000 in the second quarter of 2022.
Capital
The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Total risk-based capital ratio estimate of 12.74% , Common equity Tier 1 capital ratio of 11.58% , Tier 1 risk-based capital ratio of 11.58% and Tier 1 leverage ratio of 10.03% , at June 30, 2023.
Recent Developments
The Company launched a new market, Banco Sí, to focus on and serve the Hispanic and Latino community. This new market was formed as a division of Signature Bank of Arkansas during the third quarter of 2022, and its initial market location opened in downtown Rogers in a historic building at 114 S. 1st St. Banco Sí was launched to create economic growth and access to banking services, capital, and funds for small and midsize businesses in the Latino community.
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.
In the second quarter of 2022, the Company held its grand opening of the sixth market, Harrison, which had been operating in a temporary space for several months while the permanent space was under construction. The entry to Boone County was a new, but familiar market to the Company, as many of its shareholders reside in and around Harrison. According to the 2020 Census, Harrison had a population of 13,124.
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 headquartered 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.
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 began 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 Arkansas Board of Realtors, the average home in Washington County sold for $395,000 , up 6.1% in May 2023, compared to a year ago, with an average of 94 days on the market. For Benton County, the average house sold for $458,000 , up 12.0% from a year ago with an average of 99 days on the market.
Washington County’s population is projected to grow 5.96% from 2023 through 2028, and median household income is projected to increase by 11.12% during the same time frame. Benton County’s population is projected to grow 8.05% from 2023 through 2028, and median household income is projected to increase by 11.31% . Monroe County’s population is projected to decrease by 6.07% from 2023 through 2028 and median household income is projected to increase by 15.34% . Boone County’s population is projected to grow 1.66% from 2023 through 2028 and median household income is projected to increase by 13.62% . Craighead County’s population is projected to grow 4.40% from 2023 through 2028, and the median household income is projected to increase by 17.69% .
Sources:
http://www.nwarealtors.org/market-statistics/
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.
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WHITE RIVER BANCSHARES COMPANY CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2023 March 31, 2023 June 30, 2022 ASSETS Cash and cash equivalents $ 32,325,899 $ 87,179,713 $ 50,573,165 Investment securities 98,506,257 99,326,990 95,838,246 Loans held for sale 1,590,000 442,306 850,823 Loans, net of allowance for credit losses 863,509,798 838,864,382 709,314,619 Premises and equipment, net 29,790,308 28,563,926 28,190,083 Foreclosed assets held for sale - - - Accrued interest receivable 3,099,653 2,796,623 2,277,196 Bank owned life insurance 9,292,654 9,212,698 1,056,795 Deferred income taxes 4,987,791 4,560,952 3,725,608 Other investments 7,066,522 7,071,458 3,112,208 Intangible assets, net 2,121,458 - - Other assets 2,000,439 1,584,678 1,161,056 TOTAL ASSETS $ 1,054,290,779 $ 1,079,603,726 $ 896,099,799 LIABILITIES & STOCKHOLDERS' EQUITY Deposits: Demand and non-interest-bearing $ 243,548,686 $ 248,670,240 $ 264,120,048 Savings and interest-bearing transaction accounts 314,057,615 323,723,058 338,840,798 Time deposits 330,591,356 318,408,077 175,145,169 Total deposits 888,197,657 890,801,375 778,106,015 Federal Home Loan Bank advances 38,017,682 64,102,204 10,851,757 Notes payable 26,286,079 25,420,217 10,810,660 Lease right-of-use liability 16,707,291 15,196,424 15,687,243 Reserve for losses on unfunded commitments 1,558,000 1,558,000 1,558,000 Accrued interest payable 1,936,295 1,605,248 131,828 Other liabilities 5,384,308 3,333,968 2,728,121 TOTAL LIABILITIES 978,087,312 1,002,017,436 819,873,624 Stockholders' equity: Common stock 10,084 10,084 10,039 Surplus 90,118,719 89,901,337 89,091,965 Accumulated deficit (5,051,992 ) (4,832,876 ) (6,042,971 ) Treasury stock, at cost (820,717 ) (711,145 ) (563,441 ) Accumulated other comprehensive loss (8,052,627 ) (6,781,110 ) (6,269,417 ) TOTAL STOCKHOLDERS' EQUITY 76,203,467 77,586,290 76,226,175 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,054,290,779 $ 1,079,603,726 $ 896,099,799
WHITE RIVER BANCSHARES COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Three Months Ended June 30, March 31, June 30, 2023 2023 2022 INTEREST INCOME Loans, including fees $ 11,302,782 $ 10,672,578 $ 8,539,519 Investment securities 780,362 628,537 443,419 Federal funds sold and other 431,607 276,739 121,771 Total interest income 12,514,751 11,577,854 9,104,709 INTEREST EXPENSE Deposits 4,265,275 2,966,252 642,622 Federal Home Loan Bank advances 459,605 697,577 58,483 Notes payable 394,464 396,260 167,874 Federal funds purchased and other - 33,425 - Total interest expense 5,119,344 4,093,514 868,979 NET INTERST INCOME 7,395,407 7,484,340 8,235,730 Provision for credit losses 225,000 150,000 - NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 7,170,407 7,334,340 8,235,730 NON-INTEREST INCOME Service charges and fees on deposits 146,434 151,043 123,432 Wealth management fee income 638,436 517,514 632,367 Secondary market fee income 140,961 66,773 397,351 Bank owned-life insurance income 79,956 78,374 1,824 Loss on sales and write-downs of foreclosed assets - - 9,520 Other non-interest income 438,134 415,366 412,222 TOTAL NON-INTEREST INCOME 1,443,921 1,229,070 1,576,716 NON-INTEREST EXPENSE Salaries and benefits 4,494,027 5,258,496 4,933,794 Occupancy and equipment 950,581 891,980 815,223 Data processing 745,330 658,111 517,583 Marketing and business development 523,460 473,709 382,409 Professional services 479,291 505,899 420,007 Other non-interest expense 401,090 382,016 357,930 TOTAL NON-INTEREST EXPENSE 7,593,779 8,170,211 7,426,946 Income before income taxes 1,020,549 393,199 2,385,500 Income tax provision 242,019 53,687 600,433 NET INCOME $ 778,530 $ 339,512 $ 1,785,067 EARNINGS PER SHARE Basic $ 0.78 $ 0.34 $ 1.79 Diluted $ 0.78 $ 0.34 $ 1.79
WHITE RIVER BANCSHARES COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Six Months Ended June 30, 2023 2022 INTEREST INCOME Loans, including fees $ 21,975,360 $ 16,322,221 Investment securities 1,408,899 825,335 Federal funds sold and other 708,346 147,790 Total Interest Income 24,092,605 17,295,346 INTEREST EXPENSE Deposits 7,231,527 1,303,588 Federal Home Loan Bank advances 1,157,182 125,388 Notes payable 790,724 335,748 Federal funds purchased and other 33,425 - Total interest expense 9,212,858 1,764,724 NET INTERST INCOME 14,879,747 15,530,622 Provision for credit losses 375,000 - NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 14,504,747 15,530,622 NON-INTEREST INCOME Service charges and fees on deposits 297,477 253,546 Wealth management fee income 1,155,950 1,257,293 Secondary market fee income 207,734 799,600 Bank owned life insurance income 158,330 3,726 Loss on sales and write-downs of foreclosed assets - (151,480 ) Other non-interest income 853,500 754,470 TOTAL NON-INTEREST INCOME 2,672,991 2,917,155 NON-INTEREST EXPENSE Salaries and benefits 9,752,523 9,573,242 Occupancy and equipment 1,842,561 1,578,092 Data processing 1,403,441 1,257,596 Marketing and business development 997,169 672,102 Professional services 985,190 885,154 Other non-interest expense 783,106 669,024 TOTAL NON-INTEREST EXPENSE 15,763,990 14,635,210 Income before income taxes 1,413,748 3,812,567 Income tax provision 295,706 952,639 NET INCOME $ 1,118,042 $ 2,859,928 EARNINGS PER SHARE Basic $ 1.12 $ 2.88 Diluted $ 1.12 $ 2.88
WHITE RIVER BANCSHARES COMPANY SUPPLEMENTAL INFORMATION (Unaudited) Three Months Ended June 30, March 31, June 30, 2023 2023 2022 FOR THE PERIOD Net income $ 778,530 $ 339,512 $ 1,785,067 Net income before taxes 1,020,549 393,199 2,385,500 Dividends declared per share 1.00 - 1.00 PERIOD END BALANCE Total assets $ 1,054,290,779 $ 1,079,603,726 $ 896,099,799 Total investments 98,506,257 99,326,990 95,838,246 Total loans, net 863,509,798 838,864,382 709,314,619 Allowance for credit losses (10,608,962 ) (10,371,551 ) (8,284,983 ) Total deposits 888,197,657 890,801,375 778,106,015 Stockholders' equity 76,203,467 77,586,290 76,226,175 RATIO ANALYSIS Return on average assets (annualized) 0.30 % 0.13 % 0.81 % Return on average equity (annualized) 3.94 % 1.79 % 9.28 % Net loans/Deposits 97.22 % 94.17 % 91.16 % Total Shareholders' Equity/Total assets 7.23 % 7.19 % 8.51 % Net loan losses/Total loans 0.00 % -0.01 % -0.01 % Uninsured deposits 30.35 % 30.40 % 28.10 % PER SHARE DATA Shares outstanding 996,196 997,784 997,784 Weighted average shares outstanding 997,567 997,784 994,996 Diluted weighted average shares outstanding 997,585 999,211 995,495 Basic earnings $ 0.78 $ 0.34 $ 1.79 Diluted earnings 0.78 0.34 1.79 Book value 76.49 77.76 76.40 Tangible book value 74.36 77.76 76.40 ASSET QUALITY Net (recoveries) charge-offs $ (12,410 ) $ (65,926 ) $ (49,997 ) Classified assets 1,687,091 1,196,170 484,483 Nonperforming loans 92,618 123,922 184,570 Nonperforming assets 92,618 123,922 184,570 Total nonperforming loans/Total loans 0.01 % 0.01 % 0.03 % Total nonperforming loans/Total assets 0.01 % 0.01 % 0.02 % Total nonperforming assets/Total assets 0.01 % 0.01 % 0.02 % Allowance for credit losses/Total loans 1.21 % 1.22 % 1.15 %
WHITE RIVER BANCSHARES COMPANY INTEREST INCOME AND EXPENSE (Unaudited) Three Months Ended June 30, March 31, June 30, 2023 2023 2022 Average Interest Average Average Interest Average Average Interest Average Interest-earning assets: Federal funds sold and other $ 33,668,022 $ 431,607 5.14% $ 25,318,303 $ 276,739 4.43% $ 62,514,372 $ 121,771 0.78% Investment securities 98,944,071 780,362 3.16% 99,471,281 628,537 2.56% 94,260,851 443,419 1.89% Loans receivable 850,747,374 11,302,782 5.33% 835,070,756 10,672,578 5.18% 697,638,767 8,539,519 4.91% Total interest-earning assets 983,359,467 $ 12,514,751 5.10% 959,860,340 $ 11,577,854 4.89% 854,413,990 $ 9,104,709 4.27% Noninterest-earning assets 67,618,864 60,146,467 33,284,564 Total assets $ 1,050,978,331 $ 1,020,006,807 $ 887,698,554 Interest-bearing liabilities: Interest-bearing deposits $ 648,067,147 $ 4,265,275 2.64% $ 594,897,383 $ 2,966,252 2.02% $ 506,565,372 $ 642,622 0.51% FHLB advances and federal funds purchased 40,650,920 459,605 4.53% 65,884,599 731,002 4.50% 10,879,395 58,483 2.16% Notes payable 25,459,394 394,464 6.21% 25,414,074 396,260 6.32% 10,807,745 167,874 6.23% Total interest-bearing liabilities 714,177,461 $ 5,119,344 2.88% 686,196,056 $ 4,093,514 2.42% 528,252,512 $ 868,979 0.66% Noninterest-bearing liabilities 257,452,327 256,966,055 282,310,314 Total liabilities 971,629,788 943,162,111 810,562,826 Stockholders' equity 79,348,543 76,844,696 77,135,728 Total liabilities and stockholders' equity $ 1,050,978,331 $ 1,020,006,807 $ 887,698,554 Net interest-earning assets $ 269,182,006 $ 273,664,284 $ 326,161,478 Net interest spread $ 7,395,407 2.23% $ 7,484,340 2.47% $ 8,235,730 3.61% Net interest margin 3.02% 3.16% 3.87%
WHITE RIVER BANCSHARES COMPANY INTEREST INCOME AND EXPENSE (Unaudited) Six Months Ended June 30, 2023 2022 Average Average Average Average Balance Interest Yield/Rate Balance Interest Yield/Rate Interest-earning assets: Federal funds sold and other $ 29,516,229 $ 708,346 4.84% $ 56,691,768 $ 147,790 0.53% Investment securities 96,991,956 1,408,899 2.93% 90,422,018 825,335 1.84% Loans receivable 842,952,320 21,975,360 5.26% 693,829,458 16,322,221 4.74% Total interest-earning assets 969,460,505 $ 24,092,605 5.01% 840,943,244 $ 17,295,346 4.15% Noninterest-earning assets 65,221,029 33,687,594 Total assets $ 1,034,681,534 $ 874,630,838 Interest-bearing liabilities: Interest-bearing deposits $ 621,531,238 $ 7,231,527 2.35% $ 504,926,819 $ 1,303,588 0.52% FHLB advances and federal funds purchased 52,059,517 1,157,182 4.48% 11,527,880 125,388 2.19% Notes payable 25,436,859 790,724 6.27% 10,804,509 335,748 6.27% Total interest-bearing liabilities 699,027,614 $ 9,179,433 2.65% 527,259,208 $ 1,764,724 0.67% Noninterest-bearing liabilities 256,505,906 268,931,772 Total liabilities 955,533,520 796,190,980 Stockholders' equity 79,148,014 78,439,858 Total liabilities and stockholders' equity $ 1,034,681,534 $ 874,630,838 Net interest-earning assets $ 270,432,891 $ 313,684,036 Net interest spread $ 14,913,172 2.36% $ 15,530,622 3.47% Net interest margin 3.10% 3.72%
