TWO RIVERS FINANCIAL GROUP, INC. 222 N. Main St.
Burlington, IA 52601
319.753.9145
August 5, 2022
Dear Shareholders,
On June 21, 2022, Two Rivers Financial Group, Inc. ("TRFG") announced a definitive agreement was reached to acquire Lee County Bank from Lee Capital Corp. With offices in Fort Madison and West Point, Iowa, TRFG will continue to serve Lee County Bank's customers with a comprehensive suite of business, personal and retail banking products. As of June 30, 2022, Lee County Bank reported $238 million in assets, $204 million in gross loans and $195 million in deposits.
Upon closing of the transaction, Lee County Bank will operate as a wholly owned subsidiary of TRFG with Shane Zimmerman serving as Lee County Bank CEO and Michael Culbertson serving as Lee County Bank President.
TRFG looks forward to the addition of Lee County Bank and to welcoming its team members to the organization. The transaction remains subject to regulatory approval and other closing conditions.
Second Quarter Results
TRFG reported earnings of $3,767,165, or $1.77 per share, for the first two quarters of 2022 compared to earnings of $4,975,126, or $2.28 per share, for the first two quarters of 2021. Book value on June 30, 2022 was $44.06 compared to $48.73 on June 30, 2021. The Company's book value was impacted by net unrealized losses on the available-for-sale securities portfolio. Book value excluding other comprehensive income, or gains and losses not realized, was $51.61 and $48.46 on June 30, 2022 and 2021, respectively, an improvement of 6.5%. Tangible book value was $40.00 and $44.67 on June 30, 2022 and 2021, respectively.
The Company experienced modest loan growth during the quarter. Overall deposit balances decreased, consistent with reported national statistics on personal savings rates. During Q2, the Company invested additional liquidity into the securities portfolio while maintaining adequate liquidity to fund growth. As the Federal Reserve directs monetary policy, the Company continues to evaluate economic indicators and strategically respond.
On behalf of the TRFG Board of Directors, I would like to thank our shareholders, executive leadership, and team members for their support of our organization. We remain focused on enhancing shareholder value and look forward to opportunities on the road ahead.
Respectfully,
Frank Delaney
TRFG Chair and Interim CEO
TRFG 2nd QTR 2022 Shareholder Letter - Page 1 of 3
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
Jun 30, | Jun 30, | Dec 31, | ||||
2022 | 2021 | 2021 | ||||
$98,965 | $141,520 | $147,008 | ||||
$323 | $192 | $579 | ||||
$199,379 | $176,548 | $173,503 | ||||
$633,931 | $653,556 | $637,481 | ||||
($10,309) | ($10,080) | ($9,884) | ||||
$8,585 | $8,793 | $8,689 | ||||
$41,008 | $36,981 | $36,151 | ||||
$971,882 | $1,007,510 | $993,527 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
DEPOSITS | $840,843 | $831,559 | $846,269 | |
FEDERAL FUNDS PURCHASED | $0 | $0 | $0 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | $25,347 | $31,743 | $26,937 | |
BORROWINGS | $0 | $25,000 | $0 | |
JUNIOR SUBORDINATED DEBENTURES | $10,310 | $10,310 | $10,310 | |
OTHER LIABILITIES | $2,281 | $3,254 | $3,143 | |
TOTAL LIABILITIES | $878,781 | $901,866 | $886,659 | |
STOCKHOLDERS' EQUITY | $93,101 | $105,644 | $106,868 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $971,882 | $1,007,510 | $993,527 | |
BOOK VALUE | $44.06 | $48.73 | $49.51 | |
BOOK VALUE NET OF OTHER COMPREHENSIVE INCOME | $51.61 | $48.46 | $49.68 | |
TANGIBLE BOOK VALUE | $40.00 | $44.67 | $45.49 | |
TWO RIVERS FINANCIAL GROUP, INC. | ||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||
IN THOUSANDS, EXCEPT FOR SHARE DATA | ||||
INTEREST INCOME | 2022 Q2 YTD | 2021 Q2 YTD | 2021 | |
$14,023 | $15,009 | $29,246 | ||
INTEREST EXPENSE | $755 | $1,109 | $2,074 | |
NET INTEREST INCOME | $13,268 | $13,900 | $27,172 | |
PROVISION FOR LOAN LOSSES | $600 | $510 | $510 | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | $12,668 | $13,390 | $26,662 | |
NON-INTEREST INCOME | $6,238 | $6,768 | $13,634 | |
OPERATING EXPENSES | $14,135 | $13,773 | $28,888 | |
INCOME TAXES | $1,004 | $1,410 | $2,215 | |
NET INCOME | $3,767 | $4,975 | $9,193 | |
EARNINGS PER SHARE | $1.77 | $2.28 | $4.24 | |
CASH DIVIDENDS DECLARED PER COMMON SHARE | $0.00 | $0.00 | $0.68 |
TRFG 2nd QTR 2022 Shareholder Letter - Page 2 of 3
About Two Rivers Financial Group, Inc.:
Two Rivers Financial Group, Inc. is headquartered in Burlington, IA and is a financial holding company servicing clients throughout Iowa and surrounding states. Two Rivers Bank & Trust, a state-chartered bank and wholly owned subsidiary of Two Rivers Financial Group, Inc., commenced operations in 1904 and currently has banking centers located in Ankeny, Burlington, Coralville, Des Moines, Iowa City, Keokuk, Mt. Pleasant, Mediapolis, West Burlington, and West Des Moines, as well as a loan production office in Bettendorf. Two Rivers Financial Group, Inc. shares trade on OTCQX® under ticker symbol "TRVR".
https://investors.tworiversfinancialgroup.com
TRFG 2nd QTR 2022 Shareholder Letter - Page 3 of 3
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Two Rivers Financial Group Inc. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 14:15:04 UTC.
