White River Bancshares Co. Earns a $1.83 million, or $0.75 Per Diluted Share, in 4Q24 and $6.93 Million, or $3.03 Per Diluted Share for the Year

FAYETTEVILLE, Ark., Jan. 22, 2025 (GLOBE NEWSWIRE) — White River Bancshares Company WRIV, (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today reported net income increased to $1.83 million, or $0.75 per diluted share, in the fourth quarter of 2024, compared to $788,000, or $0.40 per diluted share, in the fourth quarter of 2023. In the preceding quarter, the Company earned $2.74 million, or $1.12 per diluted share. For the full year of 2024, net income increased to $6.93 million, or $3.03 per diluted share, compared to $2.55 million, or $1.28 per diluted share, for the year 2023. All financial results are unaudited and all per share data has been adjusted to reflect the two-for-one stock split issued September 4, 2024.

Results for the fourth quarter of 2024 included a $550,000 provision for credit losses. This compared to a $250,000 release from the allowance for credit losses in the third quarter of 2024. Excluding taxes and credit loss provisions, the Company’s pretax, pre-provision net income was $3.22 million in the fourth quarter of 2024, compared to $3.15 million in the third quarter of 2024.

“We had a great year in 2024, driven by the hard work of our team and the trust our customers place in us,” said Gary Head, Chairman and CEO. “Growth in our loan portfolio and a high interest rate environment played a big role, significantly contributing to increased net interest income and profitability relative to the prior year. Fourth quarter results were especially solid, with net income more than doubling compared to the same quarter last year. These strong results were achieved through robust revenue generation, net interest margin expansion, and the $12.46 million private placement of common shares completed earlier in the year. This additional capital has allowed us to fund new loan growth and support our strategic plans. While achieving the second-best year of earnings in our Company’s history is exciting, what matters most is how we’re helping our customers reach their goals and supporting our incredible team. We’re committed to building on this momentum and driving even greater success in 2025.”

“We’ve continued to focus on growing our deposit balances over the last several years, which has allowed us to use these deposits as our primary source of funding new loan growth,” said Scott Sandlin, Chief Strategy Officer. “Total deposits increased 5.5% during the quarter and 14.0% year-over-year. While the deposit mix has changed over the past year as customers pursued higher yielding accounts, we anticipate the mix will start to stabilize with the recent interest rate reductions. At year end, demand and non-interest bearing accounts represented 19.7% of total deposits, and savings and interest-bearing transaction accounts represented 39.3% of total deposits. We see additional opportunities for growing deposits in 2025 as we continue to attract new customers to the Bank.”

Fourth Quarter 2024 Financial Highlights:

• Net income for the fourth quarter of 2024 increased to $1.83 million, or $0.75 per diluted share, compared to $788,000, or $0.40 per diluted share, in the fourth quarter of 2023.
• Net interest income increased 28.4% to $10.0 million in the fourth quarter of 2024, compared to $7.8 million in the fourth quarter of 2023.
• Net interest margin (“NIM”) increased 39 basis points to 3.35% in the fourth quarter of 2024, compared to 2.96% in the fourth quarter of 2023.
• The Company recorded a $550,000 provision for credit losses in the fourth quarter of 2024, compared to a $250,000 release from the allowance for credit losses in the third quarter of 2024, and a $575,000 provision in the fourth quarter of 2023.
• Net loans increased 13.0% to $1.064 billion at December 31, 2024, compared to $941.2 million at December 31, 2023.
• Nonperforming loans totaled $55,000, or 0.01% of total loans at December 31, 2024.
• Total deposits increased $133.8 million, or 14.0%, during the year to $1.093 billion at December 31, 2024, compared to $959.2 million a year ago.
• Core deposits (demand and non-interest-bearing, and savings and interest-bearing transaction accounts, and CDs under $250,000) represent 73.5% of total deposits at December 31, 2024.
• Total risk-based capital ratio estimates of 12.75%, Tier 1 ratio of 11.50%, and Leverage ratio of 9.74% for the Bank on December 31, 2024.
• Tangible book value per common share was $38.74 at December 31, 2024, compared to $39.09 a year ago.

Income Statement

In the fourth quarter of 2024, the Company generated a ROAA of 0.58% and a ROAE of 7.34%, compared to 0.91% and 11.33%, respectively, in the third quarter of 2024 and 0.28% and 4.03%, respectively, in the fourth quarter a year ago.

“Our NIM expanded three basis points during the fourth quarter, compared to the prior quarter, and increased 39 basis points compared to the year ago quarter, as the contributions from robust loan growth and higher asset yields more than offset the modest increase in funding costs,” said Brant Ward, President. “We anticipate funding costs should start to stabilize or decrease in future quarters due to the recent interest rate declines.” The Company’s NIM was 3.35% in the fourth quarter of 2024, compared to 3.32% in the third quarter of 2024, and expanded 39 basis points compared to 2.96% in the fourth quarter of 2023. For the year, the NIM expanded 24 basis points to 3.23%, compared to 2.99% for 2023.

Net interest income increased 28.4% to $10.0 million in the fourth quarter of 2024, compared to $7.8 million in the fourth quarter of 2023. Total interest income increased 27.0% to $18.7 million in the fourth quarter of 2024, compared to $14.7 million in the fourth quarter of 2023, led by the increase in loans. Largely due to the increase in deposit costs, total interest expense increased to $8.7 million in the fourth quarter of 2024, from $6.9 million in the fourth quarter of 2023. For the year, net interest income increased 22.0% to $36.5 million, compared to $29.9 million in 2023.

Noninterest income increased 13.2% to $2.0 million in the fourth quarter of 2024, compared to $1.8 million in the fourth quarter a year ago. Wealth management fee income, the largest component of noninterest income, increased 3.7% to $1.0 million during the fourth quarter of 2024, compared to $998,000 in the fourth quarter of 2023. The Company acquired a wealth management division in July 2023, which continues to generate noninterest income and fuel operating results. Secondary market fee income increased to $196,000 during the fourth quarter of 2024, compared to $115,000 in the fourth quarter a year ago. For the year, noninterest income increased 23.7% to $7.6 million, compared to $6.1 million in 2023.

Noninterest expense was $8.8 million in the fourth quarter of 2024, compared to $8.0 million in the fourth quarter of 2023, as expenses are starting to normalize following the market expansion over the past few years. The Company anticipates further expense stabilization over the next several quarters. For the year, noninterest expense increased 5.9% to $33.5 million, compared to $31.6 million in 2023.

Balance Sheet

Total assets increased 13.8% to $1.290 billion at December 31, 2024, from $1.133 billion at December 31, 2023, and increased 6.1% compared to $1.216 billion at September 30, 2024. Cash and cash equivalents totaled $22.1 million at December 31, 2024, compared to $17.6 million a year ago. Investment securities totaled $133.2 million at December 31, 2024, from $114.6 million a year ago.

Loans, net of allowance for credit losses, increased 13.0% to $1.064 billion on December 31, 2024, compared to $941.2 million a year ago, and increased 8.9% compared to $977.0 million three months earlier.

Total deposits increased 14.0% to $1.093 billion at December 31, 2024, compared to $959.2 million a year ago and increased 5.5% compared to $1.036 billion at September 30, 2024. Demand and non-interest-bearing deposits decreased 3.5% compared to a year ago while savings and interest-bearing transaction accounts increased 25.2% compared to a year ago.

FHLB advances were $43.7 million at December 31, 2024, compared to $45.0 million at December 31, 2023, and $26.7 million at September 30, 2024. Total stockholders’ equity was $96.6 million at December 31, 2024, compared to $79.5 million at December 31, 2023, and $97.2 million at September 30, 2024. Tangible book value per common share was $38.74 at December 31, 2024, compared to $39.09 at December 31, 2023, and $39.15 at September 30, 2024.

On August 30, 2024, the Company paid an annual cash dividend of $0.50 per share to shareholders of record on July 31, 2024. The annual dividend was adjusted from $1.00 per share to $0.50 cents per share to reflect the two-for-one stock split issued September 4, 2024.

Credit Quality

Due to substantial quarterly loan growth, the Company recorded a $550,000 provision for credit losses in the fourth quarter of 2024. This compared to a $250,000 release from the allowance for credit losses in the third quarter of 2024, and a $575,000 provision for credit losses in the fourth quarter of 2023.

There were $55,000 in nonperforming loans at December 31, 2024. This compared to no nonperforming loans at September 30, 2024, and $1.2 million in nonperforming loans at December 31, 2023. Nonperforming loans represented 0.01% of total loans on December 31, 2024, 0.00% of total loans on September 30, 2024, and 0.10% of total loans a year ago.

The allowance for credit losses was $12.8 million, or 1.19% of total loans, at December 31, 2024, compared to $12.2 million, or 1.23% of total loans, at September 30, 2024, and $11.4 million, or 1.20% of total loans, at December 31, 2023. “We take a conservative approach to building our allowance for credit losses,” said Jeff Maland, Chief Risk Officer. “We closely monitor our portfolio mix, loan growth, and local and national conditions to maintain the appropriate allowance.”

Net loan recoveries were $106,000 in the fourth quarter of 2024, compared to net loan recoveries of $19,000 in the third quarter of 2024, and net loan charge-offs of $185,000 in the fourth quarter of 2023.

Capital

The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Total risk-based capital ratio estimate of 12.75%, a Tier 1 ratio of 11.50%, and a Leverage ratio of 9.84% for the Bank at December 31, 2024.

Recent Developments

In November 2024, James Baird was promoted to Chief Financial Officer. Baird joined the Company in 2021 as Senior Vice President & Controller.

During the third quarter of 2024 the Company relocated the Jonesboro location to its permanent location in downtown Jonesboro and during the second quarter the Company opened its second Banco Sí, location in downtown Springdale.

About White River Bancshares Company

White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas, headquartered in Fayetteville, Arkansas. The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers, Brinkley, Harrison and Jonesboro, Arkansas. Founded in 2005, Signature Bank of Arkansas provides a full line of financial services to small businesses, families and farms. White River Bancshares Company WRIV, trades on the OTCQX® Best Market.

About the Region

White River Bancshares Company is headquartered in thriving Northwest Arkansas in the Fayetteville-Springdale-Rogers MSA. The region is home to the corporate headquarters for Walmart Stores Inc, Sam’s Club, Tyson Foods, Simmons Foods, and J.B. Hunt Transport. Hundreds of other market-leading companies including Procter & Gamble, Johnson & Johnson, Coca-Cola and Rubbermaid maintain offices in the region in order to maintain their relationships with the locally based Fortune 500 companies. Northwest Arkansas is also home to the state’s flagship public educational institution, The University of Arkansas and its Sam M. Walton College of Business. The region has seen significant growth in its medical and arts infrastructures with the continued expansion of Washington Regional Medical System, Northwest Medical System, Mercy Health System of Northwest Arkansas and Arkansas Children’s Hospital Northwest. Crystal Bridges Museum of American Art and the Walton Arts Center have led the expansion of the arts. Northwest Arkansas has been repeatedly recognized in recent years as one of the best places to live in the country and remains one of the nation’s fastest-growing regions. In May 2024, Walmart issued a relocation mandate requiring most of its remote employees, as well as most of its office workers in Dallas, Atlanta and Toronto to move to, in most cases, Bentonville by November 1, 2024. While the company did not disclose a number, Bloomberg reported that the number of Walmart employees who would be moving to Bentonville would be in the thousands. Walmart is making a major investment in its hometown facilities, building a new, 350-acre headquarters campus, including walking and biking trails, a hotel, fitness facilities and a large childcare center.

The Company has expanded eastward, with new markets in Jonesboro and Harrison. Jonesboro, located in Craighead County, is a city located on Crowley’s Ridge in the northeastern corner of Arkansas. It is the home of Arkansas State University and the cultural and economic center of Northeast Arkansas. Jonesboro also houses the region’s hospital network. U.S. Steel Corp. announced that it would locate a new $3 billion steel factory in Northeast Arkansas in Osceola, a move expected to create 900 jobs with an average pay over $100,000 annually, making it the largest capital investment project in Arkansas history. Harrison sits below Branson, Missouri, which is a family tourist destination and outdoor recreation, and is well known as an entertainment destination.

The Company currently operates out of ten locations; three in Washington County; three in Benton County; two in Monroe County; one in Boone County; and one in Craighead County.

The housing market in Washington and Benton counties remains robust. According to the Northwest Arkansas Board of Realtors, the average home in Washington County sold for $389,000 in December 2024, with an average of 87 days on the market. For Benton County, the average house sold for $443,000, with an average of 97 days on the market.

Source:
http://www.nwarealtors.org/market-statistics/

Forward Looking Statements

This press release contains statements about future events. These forward-looking statements, which are based on certain assumptions of management of the Company and the Bank and describe our future plans, strategies and expectations, can generally be identified by use of forward-looking terminology such as “may,” “will,” “believe,” “plan,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or the negative of those terms. Our ability to predict results of future events and the actual effect of future plans or strategies are inherently uncertain, and actual results may differ materially from those predicted in such forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects or that could affect the outcome of such forward-looking statements include, but are not limited to, changes in interest rates; the economic health of the local real estate market; general economic conditions; credit deterioration in our loan portfolio that would cause us to increase our allowance for loan losses; legislative or regulatory changes; technological developments; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of our loan and securities portfolios; demand for loan products in our market areas; deposit flows and costs of capital; competition; retention and recruitment of qualified personnel; demand for financial services in our market areas; and changes in accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.