BURLINGTON, Wash., Dec. 14, 2016 (GLOBE NEWSWIRE) -- SaviBank (OTCPink:SVVB), today reported that, fueled by the 19% growth in both average loans and average deposits, net income grew 27% to $703,000, or $0.06 per share for the first nine months of 2016, compared to $555,000, or $0.05 per share, for the nine months ended September 30, 2015.  Third quarter 2016 earnings increased 311%, year-over-year, and 44% in the quarter to $333,000, or $0.03 per share, from $81,000, or $0.01 per share for the third quarter of 2015, and $232,000, or $0.02 per share, in the second quarter of 2016.  All results are unaudited.

“We are continuing to build momentum with improving profitability, strong loan and deposit growth and improving asset quality,” said Michal D. Cann, Chairman and Chief Executive Officer.  “We delivered a strong net interest margin of 4.27% in the third quarter, up 27 basis points from a year ago.  Our net interest margin is significantly better than the 3.58% posted by other micro-cap banks in the nation, as measured by SNL Financials Microcap Bank Index.

“Our new loan production office on Whidbey Island, Washington, continues to attract new relationships to our bank,” Cann continued.  “Our markets in Northwest Washington generate excellent opportunities for growth.”

Third Quarter 2016 (at, or for the period September 30, 2016):

  • Net interest income increased 33% to $1.7 million for the third quarter of 2016, compared to $1.3 million for the third quarter a year ago, and $1.6 million for the second quarter of 2016.  Year-to-date, net interest income grew 29% to $4.7 million compared to $3.6 million for the first nine months of 2015.

  • Non-interest income was $275,000, down 6% from $292,000 generated in the third quarter of 2015, and up 2% from $270,000 on a linked quarter basis.  For the first nine months of 2016, non-interest income was $797,000 down from $1.3 million for the first nine months of 2015, which included $1.1 million in gains from sale of SBA and other loans.

  • As of September 30, 2016, SaviBank had an unbooked deferred tax asset of approximately $4.7 million, or $0.40 per share.  SaviBank has been profitable for seven consecutive quarters.

  • For the third quarter of 2016, net interest margin (“NIM”) was 4.27% compared to 4.00% for the third quarter of 2015 and 4.44% for the second quarter of 2016.  Net interest margin was 4.27% for year-to-date 2016, up from 3.98% for first nine months of 2015.

  • Average third quarter total loans increased 24%, to $141.1 million, compared to $113.8 million at September 30, 2015, and grew 6%, from $132.6 million at June 30, 2016. End of period total loans were $147.2 million, compared to $114.4 million a year ago.

  • Average third quarter total deposits grew 26% to $142.0 million from $113.1 million in the third quarter a year ago, and increased 13% from $125.6 million in the second quarter of 2016.  End of period deposits totaled $149.0 million reflecting the seasonality of the deposit flows in our market.

  • Asset quality continues to improve with nonperforming assets decreasing to 1.07% of total assets, at September 30, 2016, compared to 2.56% of total assets a year earlier, and 1.32% of total assets, at June 30, 2016.

  • Allowance for loan losses, as a percentage of total loans, was 1.00% at September 30, 2016, compared to 1.03% at September 30, 2015.

  • SaviBank remained well capitalized with total risk-based capital ratio of 10.51% and tier-1 leverage ratio 9.18%.

  • Book value per share was $1.29 at September 30, 2016, from $1.27 a year ago.

About Northwest Washington

SaviBank operates two branches in Skagit County, and one branch each in Whatcom and Island Counties.  It also operates two Loan Production Offices - one in Skagit County and one in Island County. The Skagit, Whatcom and Island counties region stretches north from the greater Seattle/Everett/Bellevue metropolis to the Canadian border.  Skagit County’s economy is dominated by manufacturing, which accounts for 33.4% of GDP with food, machinery and oil and petroleum products the leading contributors.  Skagit’s population is projected to grow 5.22% from 2017 through 2022 and median household income is projected to increase by 7.98% during the same time frame. Whatcom County is home to Western Washington University and is the nation’s largest producers of raspberries.  Whatcom County’s population is projected to grow 5.93% from 2017 through 2022 and median household income is projected to increase by 6.86%.  Island County is home to the Whidbey Island Naval Air Base which supports approximately 7,000 military personnel with an additional 14,000 family members, over 14,000 retirees, 350+ reservists, and 2,400 civilian employees. Island County’s population is projected to grow 4.57% from 2017 through 2022 and median household income is projected to increase by 11.02%.

Sources:  https://fortress.wa.gov/esd/employmentdata/reports-publications/regional-reports/county-profiles/skagit-county-profile;  https://esd.wa.gov/labormarketinfo/county-profiles/whatcom; https://www.snl.com/interactiveX/DemographicProfileReport.aspx?ID=4100094&Ownership=Current&MarketType=County&submit3=Apply; https://www.thebalance.com/overview-naval-air-station-whidbey-island-

About SaviBank –

SaviBank (formerly known as Business Bank) is a commercial bank chartered in the State of Washington. The Bank began operations April 11, 2005 and has four branch locations in Burlington, Bellingham, Mt. Vernon, and Oak Harbor, Washington. A loan production center was opened in Anacortes, Washington in May 2013 and in Freeland in February 2016. The Bank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals in and around Skagit, Island, and Whatcom counties. As a locally-owned bank, we believe that when everyone becomes Savi about their finances, our entire community benefits.  Call us or stop by one of our branches and we’ll show you how to bank Savi.  For additional information about SaviBank visit http://www.savibank.com.

Forward Looking Statement
This release may contain “forward-looking statements” that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to SaviBank or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.

 SELECTED FINANCIAL DATA                                 
 (In thousands of dollars, except for ratios and per share amounts)                               
 Unaudited                                 
 Three Months Ended   Nine Months Ended   
   Sept. 30,
2016		   Sept. 30,
2015		   Var %   June 30,
2016		   Var %   Sept. 30,
2016		   Sept. 30,
2015		   Var %   
 SUMMARY OF OPERATIONS                                 
 Interest income $  1,908    $  1,473    30%    $  1,834      4%     $  5,313    $  4,252    25%    
 Interest expense    (224)      (210)     7       (215)     4       (641)      (630)     2    
   Net interest income    1,684       1,263      33       1,619      4       4,672       3,622      29    
   Provision for loan losses    (81)      (87)     (7)      (117)     —       (229)      (254)     (10)   
 NII after loss provision    1,603       1,176      36       1,502      7       4,443       3,368      32    
 Non-interest income    275       292      (6)      270      2       797       1,299      (39)   
 Non-interest expense    (1,545)      (1,387)     11       (1,540)     0       (4,537)      (4,112)     10    
 Income before tax     333       81      311       232      44       703       555      27    
   Federal income tax expense    -       -      -       -    -       -       -      -    
   Net income $  333    $  81      311%    $  232      44%     $  703    $  555      27%    
                                   
 PER COMMON SHARE DATA                                  
 Number of shares outstanding (000s)    11,695       10,734      9%       11,694      —        11,695       10,734      9%    
 Earnings per share, basic and diluted $  0.03    $  0.01    —    $  0.02    —    $  0.06    $  0.05      15    
 Book value    1.29       1.22      6       1.27      —       1.29       1.22      6    
                                   
 BALANCE SHEET DATA                                 
 Assets $  174,669    $  137,408      27%    $  164,958      6%     $  174,669    $  137,408      27%     
 Investments securities    8,068       5,076      59       6,085      —       8,068       5,076      59    
 Total loans     147,150       114,389      29       137,881      7       147,150       114,389      29    
 Total deposits    148,977       118,850      25       133,138      12       148,977       118,850      25    
 Borrowings     10,000       5,000      100       16,500      —       10,000       5,000      100    
 Shareholders’ equity    15,139       13,063      16       14,818      —       15,139       13,063      16    
                                   
 AVERAGE BALANCE SHEET DATA                                 
 Average assets $  163,409    $  133,373      23%    $  153,319      7%     $  151,526    $  129,601      17%     
 Average total loans    141,114       113,827      24       132,636      6       131,006       110,370      19    
 Average total deposits    142,008       113,063      26       125,573      13       127,907       107,283      19    
 Average shareholders' equity    15,060       13,106      15       14,758      2       14,790       12,881      15    
                                 
 ASSET QUALITY RATIOS                                 
 Net (charge-offs) recoveries $  9    $  (53)     83%     $  8      213%     $  3    $  (56)     (105)%     
 Net (charge-offs) recoveries to average loans    0.03%       (0.19)%      111       0.02%      11       0.00%       (0.07)%      (109)   
 Non-performing loans as a % of loans    0.06       1.36      (96)      0.14      (56)      0.06       1.36      (96)   
 Non-performing assets as a % of assets    1.07       2.56      (58)      1.32      (19)      1.07       2.56      (58)   
 Allowance for loan losses as a % of total loans    1.00       1.03      (3)      1.00      (0)      1.00       1.03      (3)   
 Allowance for loan losses as a % of non-performing loans    1,632.22       76.18      2,043       710.82      130       1,632.22       76.18      2,043    
                                   
 FINANCIAL RATIOSSTATISTICS                                 
 Return on average equity  8.84%    2.47%     258%    6.29%     —     6.34%    5.74%     10%   
 Return on average assets    0.82       0.24      237       0.61      —       0.62       0.57      8    
 Net interest margin    4.27       4.00      7       4.44      (4)      4.27       3.98      —    
 Efficiency ratio    78.87       89.20      (12)      81.52      (3)      82.96       83.56      (1)   
 Average number of employees (FTE)    54       45      20       54      -       54       45      20    
                                   
 CAPITAL RATIOS                                 
                                 
 Tier 1 leverage ratio  -- Bank     9.18       9.74      (6)      9.57      —       9.18       9.74      (6)   
 Common equity tier 1 ratio  -- Bank       9.53       10.71      (11)      10.03      (5)      9.53       10.71      (11)   
 Tier 1 risk-based capital ratio  -- Bank       9.53       10.71      (11)      10.03      (5)      9.53       10.71      (11)   
 Total risk-based capital ratio --Bank     10.51       11.72      (10)      11.02      (5)      10.51       11.72      (10)   
                                 

 

 

CONTACT:
Michal D. Cann, Chairman & CEO
(360) 707-2272

The Cereghino Group
IR CONTACT: 206-388-5785