Arizona Tribune - SVB&T Corporation, Parent Company of Springs Valley Bank & Trust Company, Reports 2025 Second Quarter and Year to Date Earnings and Declares Quarterly Dividend

SVB&T Corporation also announced that its Board of Directors declared a quarterly dividend of $0.23 per share of the Corporation's common stock. The quarterly dividend is payable on or about October 15, 2025, to shareholders of record as of the close of business on September 15, 2025. The dividend declared is a 15.00% annualized increase over the total dividend declared for the 2024 fiscal year.

Net interest income before provision expense for the second quarter ended June 30, 2025 was $5.13 million compared to $4.07 million for the same period in 2024. Interest income increased $617,000 compared to the prior year second quarter, primarily due to increased interest rates on loans resulting from the elevated rate environment and assets repricing. Interest expense decreased $438,000 compared to the same prior year quarter, due largely to lower rates on deposits resulting from the Federal Reserve's 100 basis points of federal funds rate reductions in the latter half of 2024. Provision expense decreased by $54,000 compared to the prior year second quarter. Additionally, noninterest income decreased approximately $479,000 to $2.37 million from $2.85 million. The lower income can be attributed to reduced revenue compared to the prior year second quarter from Financial Services annuity sales, servicing fees on sold loans, and gain on sale of other real estate owned, as a sizeable gain was recognized in the second quarter of 2024. As has been in the past, 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 $16,000 to $4.87 million from $4.85 million, attributable to increases in general operating expenses, the largest of which being increased salary expenses and core processing expenditures. These expense increases were somewhat mitigated by decreased health insurance expenditures due to reduced health insurance claims in 2025.

Quarter over trailing quarter earnings increased approximately $48,000 or 2.31%. The earnings increase was largely driven by increased net interest income and sold mortgage income. That said, the earnings increase was somewhat mitigated by lower Financial Advisory Group and loan servicing income, as well as increased core processing expenditures.

SVB&T Corporation book value has increased from $56.77 per share as of June 30, 2024, to $61.02 as of June 30, 2025, a 7.49% increase. SVB&T Corporation stock closed at $43.00 per share on the OTCQX exchange on June 30, 2025. In February of 2021, the Corporation's Board of Directors authorized a share repurchase program through December 31, 2022. Under the program, the Corporation was authorized to repurchase, from time to time as the Corporation deemed appropriate, shares of SVB&T Corporation's common stock with an aggregate purchase price of up to $2.00 million. As of December 31, 2022, SVB&T had repurchased (adjusted for 2022 stock split) 24,400 shares, with an average purchase price of $40.59, under the program. As of May 16, 2023, the repurchase program was renewed with an aggregate purchase price of up to $1.00 million. As of the end of the second quarter of 2025, 5,952 additional shares have been repurchased under the newly approved plan, with an average purchase price of $42.00.

Total assets increased $5.13 million to $642.94 million on June 30, 2025, compared to December 31, 2024 assets of $637.81 million. Total loans before allowance decreased $2.13 million to $477.27 million on June 30, 2025, from $479.40 million on December 31, 2024. The decrease in loans in 2025 was primarily a result of payoffs and paydowns in early 2025 on commercial real estate loans. Springs Valley has experienced relatively healthy loan demand in 2025; however, the Bank is strategically preserving liquidity for high quality credits, as well as managing loan growth to alleviate some of the pressure on the funding side of the balance sheet as cost of funds remain elevated. Allowance as a percent of total loans was 1.43% as of June 30, 2025, compared to 1.41% as of December 31, 2024. Total deposits increased $5.60 million to $568.68 million on June 30, 2025, from $563.08 million on December 31, 2024. Noninterest-bearing deposits increased by approximately $8.92 million, while interest-bearing deposits decreased by approximately $3.32 million. Core deposit growth continues to be a strategic focus of Springs Valley's as it is a critical component in generating sustainable, long-term profitability for the institution.

Year to date (YTD) unaudited earnings for the six months ended June 30, 2025 was $4.23 million or $3.85 EPS, a 36.52% increase over the same prior year period earnings on a per share basis. This YTD performance translates to a ROAA of 1.33%, compared to the same prior year period ROAA of 1.02%.

Net interest income before provision expense for the six months ended June 30, 2025 was $9.82 million compared to $8.13 million for the same period in 2024, an increase of $1.69 million. Interest income increased approximately $1.13 million as compared to the same prior year period, largely due to increased interest rates on loans resulting from the elevated rate environment and assets repricing. Additionally, interest expense decreased by $566,000 over the same period, due largely to lower rates on deposits resulting from the Federal Reserve's 100 basis points of federal funds rate reductions in the latter half of 2024. YTD provision expense increased by $37,000, compared to the same prior year period. Noninterest income decreased $129,000 to $5.00 million YTD June 2025 from $5.13 million for the same period in 2024. The largest contributing factors to the unfavorable variance were decreased servicing fees on sold loans due to a fair value adjustment on the Bank's mortgage servicing asset and decreased income from gain on sale of other real estate owned, as a sizeable gain was recognized in the second quarter of 2024. Growing noninterest income to reduce margin dependence continues to be a strategic focus of Springs Valley Bank & Trust. Noninterest expense decreased $34,000 to $9.57 million YTD June 2025 from $9.60 million for the same period in 2024. This expense decrease was largely driven by reduced health insurance expenditures due to lower health insurance claims during the first half of 2025.

President and CEO, J. Craig Buse, commented, "So far in 2025, the Bank is clicking on all cylinders, with substantive increases year over year in net interest income, Financial Advisory Group income, and sold mortgage income. That said, margin expansion has led the way, driving net interest income higher with both yields on assets rising while cost of funds are decreasing due to a combination of the rate environment and the repricing structure of our assets. We have seen net interest margin (NIM) expansion of roughly 43 basis points year to date, compared to the year to date NIM at the end of the second quarter of 2024. The Bank continues to focus on quality in the credit portfolio, bolstering liquidity, and low cost core deposit growth. Overall, our strategic focus has not changed. Springs Valley continues to focus on relationship-oriented community banking to provide year-over-year financial performance for all stakeholders."

For more information contact: Ryan Heim, Treasurer & CFO, SVB&T Corporation, at 812.634.4889 or [email protected].

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.

SOURCE: SVB&T Corporation

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