JASPER, IN / ACCESSWIRE / May 6, 2022 / SVB&T Corporation (OTCQX:SVBT), parent company of Springs Valley Bank & Trust Company, today announced 2022 first quarter unaudited earnings of $1.79 million or $1.63 earnings per share (EPS), an 18.50% decrease over the same prior year period earnings on a per share basis. This first quarter 2022 performance translates to a return on average assets (ROAA) of 1.42%, compared to the same prior year period of 1.79%. Although earnings are down relative to the first quarter of 2021, the corporation is still performing at a high level, generating a very respectable 1.42% ROAA. The decrease in earnings is primarily attributable to changes in the external environment, including the end of the SBA's Paycheck Protection Program (PPP) and a rising interest rate environment that negatively impacts mortgage lending and, subsequently, sold mortgage volume.

Net interest income before provision expense for the first quarter ended March 31, 2022 was $4.43 million compared to $4.58 million for the same period in 2021. Interest income decreased compared to the prior year first quarter, primarily due to a reduction in PPP loan origination income and, to a lesser degree, reduced income from the investment portfolio due to the low-rate environment in 2020 and 2021. Interest expense decreased as compared to the same prior year quarter, primarily due to repricing of retail CDs and continued reduced balances in brokered CDs and FHLB advances as elevated core deposit levels have allowed these funding sources to be replaced at a lower cost. Provision expense decreased $25,000 from the prior year first quarter. Additionally, compared to the prior year first quarter, noninterest income increased approximately $220,000 to $2.39 million from $2.17 million. The increased income can primarily be attributed to higher revenue from the Financial Advisory Group (from both fiduciary services and annuity sales), increased SBA loan sales, and a gain on sale of other real estate owned (OREO). Noninterest income generation continues to be a strategic focus of SVB&T's by growing the Financial Advisory Group, increasing sold loan income, expanding electronic banking services, and other avenues, to continue to reduce margin dependence. Noninterest expense increased $614,000 to $4.36 million from $3.75 million, attributable to increases in general operating expenses, the largest of which being increased salary and employee benefits expenses (including health insurance claims) and core data processing expenses. These expenses have been necessary to support the growth of Springs Valley Bank & Trust Company.

Quarter over trailing quarter earnings increased approximately $564,000 or 46.16%. The earnings increase was driven by higher noninterest income, primarily due to increased financial services income from annuity sales and a material gain on sale of OREO. The increase in earnings was also supported by decreased noninterest expense from reductions in salary and employee benefits expense as large adjustments were made in the fourth quarter of 2021 to employee incentive pay and profit sharing due to the record earnings year SVB&T Corporation had in 2021.

SVB&T Corporation book value (adjusted for the 2022 stock split) has risen from $47.03 per share as of March 31, 2021, to $50.20 as of March 31, 2022, a 6.74% increase. SVB&T Corporation stock closed at $51.66 per share on the OTCQX exchange on March 31, 2022. In February of 2021, the corporation's board of directors authorized a share repurchase program through December 31, 2022. Under the program, the corporation is authorized to repurchase, from time to time as the corporation deems appropriate, shares of SVB&T Corporation's common stock with an aggregate purchase price of up to $2.00 million. As of March 31, 2022, SVB&T has repurchased (adjusted for 2022 stock split) 21,400 shares, with an average purchase price of $39.66, under the program.

Total assets increased $25.70 million to $515.80 million on March 31, 2022, compared to December 31, 2021 assets of $490.10 million. Total loans before allowance increased $16.01 million to $399.90 million on March 31, 2022, from $383.89 million on December 31, 2021. The loan growth was primarily generated through commercial and agriculture real estate lending, as well as growth in commercial and agriculture lines of credit. Springs Valley saw an uptick in loan demand in the first quarter of 2022 and has a healthy pipeline heading into the second quarter of 2022. Additionally, Springs Valley was an active participant in small business lending via the SBA's Paycheck Protection Program. Springs Valley Bank & Trust Company made 445 PPP loans during Round 2 in 2021 for approximately $12.94 million. PPP lending was a benefit to local, small businesses and therefore was a primary focus for Springs Valley while funds were available through the SBA's Paycheck Protection Program. As of the end of March 2022, Springs Valley has 8 PPP loans for approximately $124,000 still on the balance sheet. Essentially 100% of the 2020 Round 1 PPP loans have been forgiven, and over 99% of Round 2 PPP loans have been forgiven as of the end of March. Allowance as a percent of total loans was 1.89% as of March 31, 2022, compared to 1.88% as of December 31, 2021. Springs Valley conservatively provided to the allowance for loan losses during 2020 and 2021 out of an abundance of caution for potential future credit concerns that could result from the economic impact of the ongoing Covid-19 pandemic. Total deposits increased $30.62 million to $417.53 million on March 31, 2022, from $386.91 million on December 31, 2021. Noninterest-bearing deposits decreased by approximately $4.66 million due to decreases in both business and consumer accounts. Interest-bearing deposits have increased by approximately $35.28 million. The increase was driven by the utilization of wholesale funding in the form of brokered deposits and short-term public fund CDs in order to fund the impressive loan growth Springs Valley originated in the first quarter of 2022.

"Coming off our best year in the company's 120-year franchise history, Springs Valley has maintained that momentum in 2022, generating a very healthy 1.42% return on assets in the first quarter," stated President and CEO, Jamie Shinabarger. He continued, "Our 4.17% loan growth in the first quarter is a testament to our relationship-minded bankers and their focus on the communities we serve. As it pertains to shareholders, we did complete a 2-for-1 stock split in the form of a stock dividend in the first quarter to bring down the stock price in an effort to stimulate demand and drive greater liquidity in the stock for shareholders." Looking forward to the rest of 2022, Mr. Shinabarger commented, "One of our focuses for the rest of the year will be centered around managing our balance sheet in this rising rate environment with the aim of stabilizing margin as funding costs go up. We are in the initial stages of this rate hike cycle with eight to ten rate hikes forecasted in 2022 as the Fed utilizes the tools at their disposal to combat inflation."

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. Springs Valley Bank is a member of FDIC and is an Equal Housing Lender.

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. Trust and investment products are not deposits; not insured by the FDIC; not a deposit or other obligation of, or guaranteed by, the depository institution; not insured by any Federal Government Agency; and may lose value - subject to investment risks, including possible loss of the principal amount invested.

More information can be found online at www.svbt.bank. The corporation'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's 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, capital market conditions, and/or other factors.

Selected Consolidated Financial Data of SVB&T Corporation
(In Thousands, Except Shares Outstanding and Per Share Data)

SOURCE: SVB&T Corporation