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

Net interest income before provision expense for the third quarter ended September 30, 2025 was $5.35 million compared to $4.34 million for the same period in 2024. Interest income increased $371,000 compared to the prior year third quarter, primarily due to increased interest rates on loans resulting from the elevated rate environment and assets repricing. Interest expense decreased $636,000 compared to the same prior year quarter, due largely to lower rates on deposits resulting from the Federal Reserve's federal funds rate reductions in the latter half of 2024 and 2025. Provision expense increased by $116,000 compared to the prior year third quarter. Additionally, noninterest income decreased approximately $36,000 to $2.59 million from $2.62 million. The slightly lower income can be attributed to reduced revenue compared to the prior year third quarter from Financial Services annuity sales and servicing fees on sold loans. 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 $95,000 to $5.10 million from $5.00 million, attributable to increases in general operating expenses. These expense increases were somewhat mitigated by decreased health insurance expenditures due to reduced health insurance claims so far in 2025.

Quarter over trailing quarter earnings increased approximately $451,000 or 21.07%. The earnings increase was largely driven by increased net interest income, Financial Advisory Group income, and servicing income on sold loans.

SVB&T Corporation book value has increased from $58.77 per share as of September 30, 2024, to $64.35 as of September 30, 2025, a 9.49% increase. SVB&T Corporation stock closed at $47.50 per share on the OTCQX exchange on September 30, 2025. In May of 2025, the Corporation's Board of Directors reauthorized a share repurchase program through June 1, 2027. 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 $1.00 million. As of the end of the third quarter of 2025, 2,100 shares have been repurchased under the newly reapproved plan, with an average purchase price of $47.03.

Total assets decreased $2.58 million to $635.23 million on September 30, 2025, compared to December 31, 2024 assets of $637.81 million. Total loans before allowance decreased $2.08 million to $477.32 million on September 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 1.42% as of September 30, 2025, compared to 1.41% as of December 31, 2024. Total deposits decreased $6.05 million to $557.03 million on September 30, 2025, from $563.08 million on December 31, 2024. Noninterest-bearing deposits decreased by approximately $302,000, while interest-bearing deposits decreased by approximately $5.75 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 nine months ended September 30, 2025 was $6.83 million or $6.21 EPS, a 41.78% increase over the same prior year period earnings on a per share basis. This YTD performance translates to a ROAA of 1.43%, compared to the same prior year period ROAA of 1.05%.

Net interest income before provision expense for the nine months ended September 30, 2025 was $15.17 million compared to $12.47 million for the same period in 2024, an increase of $2.70 million. Interest income increased approximately $1.50 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 $1.20 million over the same period, due largely to lower rates on deposits resulting from the Federal Reserve's federal funds rate reductions in the latter half of 2024 and 2025. YTD provision expense increased by $153,000, compared to the same prior year period. Noninterest income decreased $165,000 to $7.59 million YTD September 2025 from $7.76 million for the same period in 2024. The largest contributing factors to the unfavorable variance were decreased servicing income 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 increased $61,000 to $14.66 million YTD September 2025 from $14.60 million for the same period in 2024. This expense increase was largely driven by general operating expenses, the largest of which being increased salary, legal, and core processing expenditures.

President and CEO, J. Craig Buse, commented, "2025 is trending to be one of the best years in terms of earnings and profitability in the Bank's history. Margin expansion has been a substantive tailwind 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 58 basis points when comparing the 2025 third quarter NIM to the third quarter NIM 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."

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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.

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

SOURCE: SVB&T Corp.

View the original press release on ACCESS Newswire

T.Sanchez--AT