SVB&T Corporation, the parent company of Springs Valley Bank & Trust Company, recently announced third-quarter earnings for 2024, reporting unaudited earnings of $1.71 million, or $1.56 per share. This represents a 6.12% increase over the same period last year. The quarterly performance maintained a stable return on average assets (ROAA) of 1.11%, consistent with the prior year.
The third quarter saw net interest income before provision expenses totaling $4.34 million, compared to $4.39 million during the same quarter in 2023. The earnings increase primarily reflects a rise in interest income, which grew by $1.07 million, driven by higher loan balances and increased interest rates due to an elevated rate environment. Simultaneously, interest expenses increased by $1.12 million, primarily due to higher deposit balances and shifts in the deposit mix. Provision expenses decreased by $125,000, while noninterest income rose by $239,000 to $2.62 million, fueled by revenue growth in the Financial Advisory Group, electronic banking services, and gains on the sale of real estate.
SVB&T has continued to emphasize noninterest income as a strategic focus, aiming to reduce dependence on margin-based income through expanding its Financial Advisory Group, electronic banking, and sold loan income. However, noninterest expenses grew by $286,000, driven by higher operating costs, including increased salary, health insurance, and processing expenses.
Quarter-over-quarter, SVB&T saw a modest earnings increase of $15,000, or 0.89%, largely due to growth in net interest income and gains from the Financial Advisory Group.
The corporation’s stock closed at $42.20 per share on September 30, 2024, while the book value per share rose to $58.77, reflecting a 13.04% increase. Additionally, SVB&T continued its share repurchase program, buying back 5,952 shares at an average price of $42.00 per share as of Q3 2024.
SVB&T’s total assets rose to $622.09 million by September 30, 2024, up $8.54 million from December 31, 2023. The growth was largely in commercial real estate, consumer mortgages, agricultural lines, and home equity loans, areas where the bank saw strong demand. Deposits also increased by $15.52 million, reaching $548.98 million by the end of Q3.
For the first nine months of 2024, SVB&T reported unaudited year-to-date earnings of $4.81 million, or $4.38 per share, up 5.54% from the previous year. Year-to-date noninterest income reached $7.76 million, a $1.48 million increase from the prior period. The bank attributes this growth to the success of its Financial Advisory Group, increased electronic banking income, and gains from loan servicing and mortgage sales.
SVB&T President J. Craig Buse expressed optimism, stating, “Springs Valley continues to focus on relationship-oriented community banking while following our Mission Statement and staying true to our Core Values. This approach has resulted in a healthy 1.05% ROAA year to date.” CEO Jamie Shinabarger echoed this sentiment, noting that despite the challenging economic environment, SVB&T remains committed to enhancing financial quality for its community.
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