TWO RIVERS FINANCIAL GROUP, INC. 222 N. Main St. Burlington, IA 52601 319.753.9145
May 3, 2023
Dear Shareholder,
On February 22, 2023, Two Rivers Financial Group, Inc. (TRFG) held its annual meeting. Presenters were Andrea Gerst, TRFG Chief Financial Officer, Shane Zimmerman, Two Rivers Bank & Trust (TRBT) President and CEO, and Frank Delaney, TRFG Chair and Interim CEO. Three directors were re-elected to the TRFG Board of Directors: David L. Baker, Sadhna B. Jani, and Ned L. Skinner.
On behalf of the TRFG Board of Directors, Executive Leadership, and all Team Members, I provide you our first quarter 2023 performance report.
First Quarter Results
TRFG reported earnings of $2,336,715, or $1.11 per share, for the first quarter of 2023 compared to earnings of $1,238,357, or $0.58 per share, for the first quarter of 2022. TRFG's book value was $44.48 on March 31, 2023 compared to $45.53 on March 31, 2022. Book value continued to be negatively impacted due to the unrealized loss position in the TRBT bond portfolio. Based on our liquidity position and contingency funding plans, TRBT did not sell securities in an unrealized loss position and continued to closely monitor the portfolio. Book value excluding other comprehensive income, or gains and losses not realized, was $52.37 and $50.41 on March 31, 2023 and 2022, respectively, an improvement of 3.88%. Tangible book value was $30.73 and $41.44 on March 31, 2023 and 2022, respectively.
Total loans on March 31, 2023 are 43% higher than one year ago as a result of the Lee County Bank acquisition and greater loan demand. Quarter over quarter loans remained relatively flat. Total deposits are 23% higher than one year ago. As deposits declined overall in the banking industry, TRFG's deposits quarter over quarter declined 4.45%.
The Company continues to monitor the economic landscape and recent banking industry events. Competition to retain and grow deposits will continue to be aggressive in the current rate environment. We do not plan to realize any loses related to the TRBT bond portfolio. The Company's primary funding source continues to be core deposits and additional contingency funding plans are in place to support growth. The management team is focused on growing and retaining relationships, funding loans, serving customers, and driving value for TRFG Shareholders.
Leadership and management remain focused on enhancing shareholder value and look forward to opportunities on the road ahead.
Respectively,
Frank J. Delaney, TRFG Chair & Interim CEO
TWO RIVERS FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
IN THOUSANDS, EXCEPT FOR SHARE DATA
ASSETS
CASH AND DUE FROM BANKS FEDERAL FUNDS SOLD INVESTMENT SECURITIES
LOANS BEFORE ALLOWANCE FOR LOAN LOSSES ALLOWANCE FOR LOAN LOSSES
GOODWILL AND OTHER INTANGIBLES OTHER ASSETS
TOTAL ASSETS
LIABILITIES AND STOCKHOLDERS' EQUITY
DEPOSITS
FEDERAL FUNDS PURCHASED
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE BORROWINGS
JUNIOR SUBORDINATED DEBENTURES OTHER LIABILITIES
TOTAL LIABILITIES
STOCKHOLDERS' EQUITY
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
Mar 31, | Mar 31, | Dec 31, | ||
2023 | 2022 | 2022 | ||
$29,590 | $139,361 | $73,080 | ||
$583 | $256 | $351 | ||
$223,654 | $185,514 | $226,167 | ||
$885,390 | $620,714 | $887,333 | ||
($12,159) | ($10,304) | ($9,079) | ||
$28,932 | $8,637 | $29,334 | ||
$40,911 | $39,297 | $41,689 | ||
$1,196,901 | $983,475 | $1,248,875 | ||
$1,044,912 | $849,851 | $1,093,613 | ||
$0 | $0 | $0 | ||
$11,820 | $23,214 | $14,961 | ||
$33,606 | $0 | $33,378 | ||
$10,310 | $10,310 | $10,310 | ||
$2,641 | $3,910 | $3,145 | ||
$1,103,289 | $887,285 | $1,155,407 | ||
$93,612 | $96,190 | $93,468 | ||
$1,196,901 | $983,475 | $1,248,875 |
BOOK VALUE | $44.48 | $45.53 | $44.41 |
BOOK VALUE NET OF OTHER COMPREHENSIVE INCOME | $52.37 | $50.41 | $53.02 |
TANGIBLE BOOK VALUE | $30.73 | $41.44 | $30.47 |
TWO RIVERS FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
IN THOUSANDS, EXCEPT FOR SHARE DATA
INTEREST INCOME
INTEREST EXPENSE
NET INTEREST INCOME
PROVISION FOR LOAN LOSSES
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES NON-INTERESTINCOME
OPERATING EXPENSES
INCOME TAXES
NET INCOME
2023 Q1 | 2022 Q1 | 2022 | |
$11,864 | $6,902 | $33,574 | |
$3,270 | $355 | $3,747 | |
$8,594 | $6,547 | $29,827 | |
$0 | $600 | ($439) | |
$8,594 | $5,947 | $30,266 | |
$2,515 | $2,649 | $11,293 | |
$8,121 | $7,051 | $30,319 | |
$651 | $307 | $2,941 | |
$2,337 | $1,238 | $8,299 |
EARNINGS PER SHARE | $1.11 | $0.58 | $3.92 |
CASH DIVIDENDS DECLARED PER COMMON SHARE | $0.00 | $0.00 | $0.68 |
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Disclaimer
Two Rivers Financial Group Inc. published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 20:23:04 UTC.
