White River Bancshares Company (OTCQX: WRIV), the holding company for Signature Bank of Arkansas, announced a significant increase in net income for the first quarter of 2025. Net income rose to $2.63 million, or $1.07 per diluted share, compared to $509,000, or $0.26 per diluted share, for the same period in 2024. The company’s net income for the previous quarter was $1.83 million, or $0.75 per diluted share.
Gary Head, Chairman and CEO, attributed the strong performance to loan portfolio growth, which boosted net interest income compared to the first quarter of the previous year.
Scott Sandlin, Chief Strategy Officer, highlighted the company’s focus on expanding its deposit base to fund new loan growth. Total deposits increased 9.9% during the first quarter of 2025 and 18.9% year-over-year. Demand and non-interest bearing accounts represented 19.3% of total deposits, while savings and interest-bearing transaction accounts accounted for 38.0% of total deposits at the end of the quarter.
In the first quarter of 2025, net interest income rose by 32.0% to $10.6 million, up from $8.0 million in the same period of 2024. The net interest margin also improved, increasing by 42 basis points to 3.39% compared to 2.97% a year earlier. The company recorded a provision for credit losses of $670,000 in the first quarter of 2025, compared to $550,000 in the previous quarter and $648,000 in the first quarter of 2024.
Net loans grew by 16.3% to $1.128 billion as of March 31, 2025, compared to $969.7 million a year earlier. Nonperforming loans totaled $420,000, or 0.04% of total loans, down from 0.18% a year ago. Total deposits increased by $190.7 million, or 18.9%, year-over-year to $1.201 billion, with core deposits representing 70.25% of the total. Tangible book value per common share rose to $40.33 at March 31, 2025, up from $39.05 a year earlier.
The company’s return on average assets was 0.79%, and its return on average equity was 10.64% in the first quarter of 2025. This is compared to 0.18% and 2.52%, respectively, in the first quarter of 2024.
Brant Ward, President, noted that strong loan growth and higher yields on interest-earning assets contributed to the NIM expansion during the quarter.
Noninterest income increased 22.7% to $1.9 million in the first quarter of 2025, primarily due to increases in wealth management and secondary market fee income.
The company recorded a $670,000 provision for credit losses in the first quarter of 2025, and nonperforming loans represented 0.04% of total loans at March 31, 2025. The allowance for credit losses was $13.3 million, or 1.17% of total loans, at March 31, 2025. The Bank’s capital ratios continue to exceed regulatory requirements.
White River Bancshares Company is the holding company for Signature Bank of Arkansas, which operates ten locations across Arkansas, and will celebrate its 20-year anniversary in May 2025.
