JASPER, IN / ACCESSWIRE / April 30, 2021 / SVB&T Corporation (OTCQX:SVBT), parent company of Springs Valley Bank & Trust Company, today announced 2021 first quarter unaudited record earnings of $2.2 million or $4.01 earnings per share (EPS), a 174.66% increase over the same prior year period earnings on a per share basis. This first quarter 2021 performance translates to a return on average assets (ROAA) of 1.79%, compared to the same prior year period of 0.72%.

Net interest income before provision expense for the first quarter ended March 31, 2021 was $4.6 million compared to $3.6 million for the same period in 2020, an increase of $987,000. This increase can primarily be attributed to growth in earning assets over the prior year, including Paycheck Protection Program (PPP) loans and the associated origination fees, and, to an even greater degree, reduced funding costs of both deposits and borrowings resulting from the reduced rate environment subsequent to the Fed's 150 basis point reduction to the federal funds rate in March of 2020. Provision expense increased $20,000 over the prior year first quarter. Additionally, compared to the prior year first quarter, noninterest income increased approximately $647,000 to $2.2 million from $1.5 million, largely due to elevated sold mortgage income and Financial Advisory Group income. Mortgage origination continues to be a strategic focus of Springs Valley in this historically low-rate environment in an ongoing effort to benefit customers via mortgage refinancing and low-rate originations, as well as to generate fee income for the institution. Financial Advisory Group income has been bolstered by a resilient equities market during the first quarter of 2021. Noninterest expense decreased $169,000 to $3.7 million from $3.9 million, resulting mainly from the aggregation of small expense reductions in areas such as employee salary and benefits expenses, professional services fees, and advertising and marketing expenses.

Quarter over trailing quarter earnings increased approximately $867,000 or 63.63%. The biggest contributors to this variance were positive earnings contributions from increased net interest income due to lower interest expense and provision expense, increased income from the sold mortgage portfolio, and expense savings from reduced employee salary and benefits expenses.

SVB&T Corporation book value has risen from $91.87 per share as of December 31, 2020 to $94.05 as of March 31, 2021, a 2.37% increase. SVB&T Corporation stock closed at $84.88 per share on the OTCQX exchange on April 29, 2021.

Total assets increased $3.1 million to $499.2 million on March 31, 2021 compared to December 31, 2020 assets of $496.1 million. Total loans before allowance increased $8.8 million to $383.9 million on March 31, 2021 from $375.1 million on December 31, 2020. The loan growth was primarily generated through commercial and agriculture non-real estate lending, as well as small business lending via the SBA's Paycheck Protection Program. Springs Valley Bank & Trust made 315 Round 2 PPP loans in the first quarter of 2021 for approximately $10.6 million. PPP lending continues to be a benefit to local, small businesses and therefore remains a focus of Springs Valley's while funds are available through the SBA's Paycheck Protection Program. Allowance as a percent of total loans was 1.82% as of March 31, 2021 compared to 1.60% as of December 31, 2020. Springs Valley has continued to conservatively reserve for potential future loan losses that could result from the economic impact of the ongoing Covid-19 pandemic. Total deposits increased $4.2 million to $401.2 million on March 31, 2021 from $397.0 million on December 31, 2020. The deposit growth has been generated in both interest-bearing and noninterest-bearing deposit accounts for both businesses and consumers, seemingly due to government stimulus initiatives, a generally elevated propensity for saving because of the overall level of economic uncertainty due to the pandemic, and Round 2 PPP loan funds that have been deposited into customers' business accounts until ultimately utilized by the respective businesses.

The predominant message to sum up the first quarter is clearly, "The beat goes on," which is to say that the momentum created in 2020 has largely carried over into 2021. "The primary drivers of revenue continue to be sold mortgages, a very manageable cost of funding the balance sheet, and PPP income (in that order)," stated President and CEO Jamie Shinabarger.

The Bank was also the recipient of a large $777,000 loan recovery from a legacy credit in March, most of which was charged off in 2019 and 2020.

Meeting community housing needs ranks high on the list of Bank priorities and, in the first quarter, Springs Valley helped 163 customers buy, build, or refinance their homes primarily in Orange, Dubois, Martin, Gibson, and Daviess Counties.

Springs Valley has cumulatively originated 836 PPP loans (Round 1 and 2 combined). These funds helped small businesses (farms, restaurants, hotels, sole proprietorships, and myriad other small enterprises) meet payroll, rent, and other qualifying expenses. The average loan size in Round 1 was $52,000 while in Round 2, it was a smaller $29,000. "Our smaller PPP loan size is a strong attestation of our commitment to rural communities and speaks favorably by comparison," stated Shinabarger. Nationwide, the average size of a PPP loan was $101,000 for Round 1 and $48,000 for Round 2.

Mr. Shinabarger concluded, "Whether in good times, bad times, or something in-between, what truly sets Springs Valley apart in an uncertain world is our continued commitment to enhancing the financial quality of life in our communities by focusing on you."

For more information, contact: Ryan Heim, Treasurer & CFO, SVB&T Corporation, at (812) 634-4889 or rheim@svbt.com.

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. Its subsidiary, Springs Valley Bank & Trust Company, has locations in Dubois, Daviess, Gibson, and Orange Counties, offering full-service bank and financial 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 consumer and mortgage applications, and a variety of other loan options. In addition, the company has a full-service financial advisory group 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).

SOURCE: SVB&T Corporation

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