SVB&T reports stable third quarter profit despite challenging environment

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Jasper — SVB&T Corporation, the parent company of Springs Valley Bank & Trust, announced its 2023 third-quarter financial results this week, reporting stable performance despite challenging economic conditions.

The bank posted a profit of $1.62 million in the third quarter, or $1.47 per share. This compares to last year’s third-quarter profit of $1.62 million, or $1.47 per share.

Return on average assets, a key measure of profitability, was 1.11 percent in the third quarter of 2023, compared to 1.23 percent in the third quarter of 2022.

Net interest income decreased from $4.87 million in the third quarter of 2022 to $4.39 million in the third quarter of 2023 as the increase in interest expense outpaced the growth in interest income.

Non-interest income increased compared to the prior year period due to higher revenues from mortgage sales, financial services and electronic banking.

SVB&T Corporation’s book value (adjusted for the 2022 stock split) increased 8.11% from $48.09 per share as of September 30, 2022 to $51.99 per share as of September 30, 2023. SVB&T Corporation’s stock closed at $39.50 per share on the OTCQX exchange on September 30, 2023.

In February 2021, the company’s board of directors approved a stock repurchase program through December 31, 2022. Under this program, the Company was authorized to repurchase SVB&T Corporation’s common stock on a per-share basis as it deemed appropriate. Total purchase price up to $2 million. As of December 31, 2022, SVB&T has repurchased 24,400 shares under this program at an average purchase price of $40.59 (adjusted for the 2022 stock split). As of May 16, 2023, the repurchase program has been updated with a total purchase price of up to $1 million. As of the end of the third quarter, there were no stock repurchases under the newly approved plan.

“An old saying (some people more accurately describe it as a curse) goes, ‘May you live in interesting times,’ but nine months from now, in 2023, there will be a global cataclysm. Considering (the war in Ukraine and the Middle East) we can definitely say “interesting”. “Despite the UAW strike, the collapse and ensuing court case of crypto giant FTX, and interest rates that are 225 basis points higher than they were just over a year ago, the economy will not slow down materially,” the CEO said. CEO Jamie Shinabarger said.

He added: “Although the numbers show that the U.S. and global economies are resilient, there are signs that consumer households are weakening under the weight of inflation, and some business segments are struggling to maintain profitability. I feel it is difficult.” Banking is one such industry in particular. ”

Total assets increased from $560.66 million at the beginning of the year to $583.38 million as of September 30, 2023. This growth was primarily due to loan increases, with total loans increasing to $474.29 million. Deposits also increased to $507.72 million from $469.22 million in December last year.

While pointing to economic headwinds, Shinaberger said the bank’s priority is to carefully manage liquidity, costs and risk through the end of the year.

“As we close out 2023, we are committed to keeping our heads down and overcoming the challenges,” he said. “It’s about preparing for 2024 with eyes wide open, responding agilely to changes in the business environment, and mitigating overall risk while maintaining day-to-day relationships with the communities our brands touch. This means providing ship banking services in our different areas of operation. ”

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