SaviBank 1Q17 Profits More Than Double to $363,000 in 1Q17 YOY; Fueled by 30% Loan Growth and 17% Deposit Growth

BURLINGTON, Wash., April 27, 2017 (GLOBE NEWSWIRE) -- SaviBank (OTCPink: SVVB), today reported first quarter 2017 profits more than doubled to $363,000, or $0.02 per share, driven by 30% loan growth and 17% deposit growth, year-over-year. Pre-tax net income more than quadrupled to $559,000, or $0.04 per share, in the first quarter of 2017, compared to $138,000, or $0.01 per share, both pretax and after tax, in the first quarter of 2016. Pretax earnings increased 19%, compared to $471,000 in the fourth quarter of 2016. In the fourth quarter, SaviBank booked a one-time $4.6 million tax benefit for its deferred tax assets based on consistent and accelerating profitability over the past three years. Consequently, fourth quarter 2016 net income was $5.0 million, or $0.43 per share. All results are unaudited.

“We are continuing to generate earnings momentum, posting strong first quarter 2017 profits. Excellent growth in loans and deposits is providing accelerating top and bottom line performance,” said Michal D. Cann, Chairman and Chief Executive Officer. “To support our fast-growing balance sheet, we are completing a two-stage, $8.0 to $8.5 million capital raise. Our largest shareholder invested an additional $5.0 million in this offering with the remaining $3.0 to $3.5 million in capital being raised in our local community and with a few long-term institutional owners. We are extremely pleased with the offering’s reception from our existing and new shareholders. This fresh capital is expected to support our growth for the next several years.” For information on the offering, or to download a copy of the offering memorandum, visit

“We continue to generate above average net interest margin, which was 4.43% in the first quarter of 2017 up 7 basis points in the quarter and 8 basis point year-over-year,” noted Rob Woods, Chief Financial Officer. The net interest margin is significantly better than the peer average of 3.60% posted by the 564 micro-cap banks in the SNL Financials Microcap Bank Index as of December 31, 2016.

“Our SBA loan production remains strong, and our sales of these assets is consistently growing, but tends to be somewhat variable from one quarter to the next,” said Andrew Hunter, President.

“We opened our fifth branch in Freeland, Washington, on April 17th and are celebrating our grand opening for this South Whidbey Island branch on April 27,” continued Hunter. "We also want to invite shareholders, employees and stakeholders to our annual meeting on May 25th at Eaglemont Golf Course in Mount Vernon, Washington at 6 p.m.”

First Quarter 2017 Highlights (at, or for the period March 31, 2017)

  • Net interest income increased 37% to $1.9 million for the first quarter of 2017, compared to $1.4 million a year ago, and grew 8% from $1.7 million in the fourth quarter of 2016.
  • Non-interest income increased 48% to $372,000 in the first quarter of 2017, from $252,000 in the first quarter of 2016 and decreased 9% from $409,000 in the preceding quarter, reflecting the variability of SBA loan originations and sales from quarter to quarter.
  • For the first quarter of 2017, net interest margin (“NIM”) was 4.43%, and included 19 basis points from the repayment of a past due loan, compared to 4.35% for the first quarter of 2016 and 4.36% for the fourth quarter of 2016.
  • Average first quarter total loans increased 30%, to $156.3 million, compared to $120.1 million a year ago, and grew 4%, from $149.8 million in the fourth quarter of 2016. End of quarter total loans were $162.0 million, compared to $124.9 million a year ago, a 30% increase year-over year.
  • Average first quarter total deposits grew 16% to $134.4 million from $116.0 million in the first quarter a year ago, and decreased 6% from $143.0 million in the fourth quarter of 2016. End of period deposits totaled $136.9 million reflecting the seasonality of the deposit flows in our market.
  • Nonperforming loans were 0.03% of total loans at both March 31, 2017, and December 31, 2016 compared to 0.91% of total loans a year earlier
  • Net recoveries of $315,000 in the first quarter of 2017 were added to reserves.
  • Allowance for loan losses, as a percentage of total loans, was 1.15% at March 31, 2017, compared to 1.00%, at March 31, 2016.
  • With the new capital raised during the quarter, SaviBank capital levels improved and remain above the threshold for well capitalized institutions. The total risk-based capital ratio was 13.65% and the tier-1 leverage ratio was 11.58%.
  • Book value per share was $1.72 at March 31, 2017, compared to $1.24 a year ago.

About Northwest Washington

SaviBank operates two branches and one loan production office in Skagit County, two branches in Island County, and one branch in Whatcom County. The Skagit, Whatcom and Island counties region stretches north from the greater Seattle/Everett/Bellevue metropolis to the Canadian border. Northwest Washington continues to be one of the most vibrant regions in the country, with a solid employment base, moderate climate and a strong housing market. “The recently announced layoffs at Boeing, which account for less than 1% of the company’s Washington state workforce, have not yet begun to impact the local economy,” Cann noted. “In addition, the planned reduction in output at the Everett plant to five aircraft from seven per month is expected to be a moderating factor on the fast growth in the Northwest region.”

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 producer 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%.


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 five branch locations in Burlington, Bellingham, Mt. Vernon, Oak Harbor, and Freeland, Washington. A loan production center was opened in Anacortes, Washington, in May 2013. 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 community 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

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.

(In thousands of dollars, except for ratios and per share amounts)
Three Months Ended
March 31,
December 31,
Var % March 31,
Var %
Interest income$2,135 $1,962 8.8% $1,571 35.9%
Interest expense (261) (220) 18.6% (202)29.2%
Net interest income 1,874 1,742 7.6% 1,369 36.9%
Provision for loan losses (23) (85) -72.9% (31)-25.8%
NII after loss provision 1,851 1,657 11.7% 1,338 38.3%
Investment security gains (losses) - - -
Non-interest income 372 409 -9.0% 252 47.6%
Non-interest expense (1,664) (1,595) 4.3% (1,452)14.6%
Income before tax 559 471 18.7% 138 305.1%
Federal income tax expense 196 (4,554) NM -
Net income$363 $5,025 NM $138 163.0%
Number of shares outstanding (000s) 14,820 11,695 26.7% 11,694 26.7%
Earnings per share, basic and diluted$0.02 $0.43 NM $0.01 107.6%
Market value 1.60 1.25 28.0% 1.25 28.0%
Book value 1.72 1.72 0.0% 1.24 38.2%
Market value to book value 93.05% 72.69% 100.50%
Assets$198,235 $186,342 6.4% $152,337 30.1%
Investments securities 10,440 8,952 16.6% 4,739 120.3%
Total loans 162,013 152,019 6.6% 124,899 29.7%
Total deposits 136,896 137,162 -0.2% 117,090 16.9%
Borrowings 35,300 28,500 23.9% 20,250 74.3%
Shareholders’ equity 25,483 20,112 26.7% 14,545 75.2%
Average assets$185,943 $171,028 8.7% $137,718 35.0%
Average total loans 156,279 149,840 4.3% 120,099 30.1%
Average total deposits 134,434 143,016 -6.0% 115,987 15.9%
Average shareholders' equity 20,628 16,263 26.8% 14,545 41.8%
Net (charge-offs) recoveries$315 $(30) $(61)
Net (charge-offs) recoveries to average loans 0.81% (0.08)% (0.20)%
Non-performing loans as a % of loans 0.03 0.03 0.91
Non-performing assets as a % of assets 0.79 0.84 0.74
Allowance for loan losses as a % of total loans 1.15 1.00 1.00
Allowance for loan losses as a % of non-performing loans 3,879.17 2,930.77 110.58
Return on average equity 7.04% 123.59% 3.80%
Return on average assets 0.78 11.75 0.40
Net interest margin 4.43 4.36 4.35
Efficiency ratio 74.09 74.15 89.57
Average number of employees (FTE) 58 55 50
Tier 1 leverage ratio -- Bank 11.58 9.34 10.46
Common equity tier 1 ratio -- Bank 12.50 9.69 10.63
Tier 1 risk-based capital ratio -- Bank 12.50 9.69 10.63
Total risk-based capital ratio --Bank 13.65 10.68 11.60
NM Not Meaningful

CONTACT: Michal D. Cann, Chairman & CEO (360) 707-2272 The Cereghino Group IR CONTACT: 206-388-5785