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BURLINGTON, Wash., Sept. 05, 2018 (GLOBE NEWSWIRE) -- Savi Financial Corporation, Inc. (OTC Pink: SVVB), the bank holding company for SaviBank (formerly Business Bank), today announced that its Board of Directors voted to proceed on a 1-for-5 reverse stock split of the Company’s issued and outstanding common shares, for shareholders of record on September 10, 2018. The reverse stock split will take effect prior to the opening of the OTC Pink Market on September 11, 2018, and will be effective with respect to shareholders of record at the close of business on September 10, 2018, (the “Effective Time”). At the effective time of the reverse stock split, every five shares of Savi’s pre-split common shares will automatically be consolidated into one post-split share. Fractional shares will round up to the nearest whole number. Following the reverse split, Savi Financial will have 3.42 million shares outstanding, a book value of $8.75 per share, and year-to-date earnings per diluted share of $0.275, based on June 30, 2018, financial statements.
“Shareholders ownership in Savi Financial does not change based on this reverse split,” said Michal D. Cann, Chairman and CEO. “The reverse split should improve the overall perception of the company and the marketability of our stock. We will no longer be a ‘penny stock,’ and we believe it will make our shares more attractive to investors.”
The Company’s shares of common stock will trade on the OTC Pink Market under the symbol “SVVBD”. The letter “D” will be added to the end of the trading symbol for a period of 20 trading days to indicate that the reverse stock split has occurred. Following the 20-day period, the ticker symbol will revert to “SVVB”.
Shareholders need take no action at this time. The Company’s transfer agent will mail a letter of transmittal to shareholders of record at the Effective Time with instructions regarding the surrender and exchange of stock certificates. Certificates for Business Bank, SaviBank and Savi Financial will be converted into shares of Savi Financial Corporation, Inc. at a 1-for-5 ratio. Shareholders who have deposited their shares into an account with a brokerage firm, or other financial institution, will have that institution complete the conversion. “We encourage shareholders to complete the forms being sent from our transfer agent and return them with their stock certificates, as soon as they receive them,” Cann noted.
Savi Financial reported second quarter 2018 earnings were $519,000, or $0.024 per share, up 28% compared to $404,000, or $0.020 per share in the second quarter of 2017. In the first quarter of 2018, Savi earned $661,000, or $0.033 per share, reflecting strong Small Business Administration (SBA) loan sales. Profitability was fueled by 15% loan growth and 25% deposit growth year-over-year, excellent asset quality and a strong net interest margin. In the first six months of 2018, earnings grew 50% to $1.18 million, or $0.055 per diluted share, compared to $785,000, or $0.039 per diluted share, in the first six months of 2017. The following tables provide the split-adjusted financials for the past four years and for the current financial periods.
|Pro Forma||Year Ended|
|Tangible Book Value / Share||$||8.45||$||8.60||$||6.15||$||5.80|
|EPS (fully diluted)||$||0.0286||$||2.4500||$||0.3000||$||0.0500|
|Basic EPS before DTA Adjustment||$||0.4432||$||0.3249||$||0.3000||$||0.0500|
|Three Months Ended||Six Months Ended|
|Tangible Book Value / Share||$||8.75||$||8.60||$||8.65||$||8.75||$||8.65|
|EPS (fully diluted)||$||0.1200||$||0.1650||$||0.1000||$||0.2750||$||0.1974|
|Basic EPS before DTA Adjustment||$||0.1200||$||0.1650||$||0.1000||$||0.2750||$||0.1974|
About Savi Financial Corporation Inc. and SaviBank –
Savi Financial Corporation is the small bank holding company of SaviBank. The Bank began operations April 11, 2005, as Business Bank, and has five branch locations in Burlington, Bellingham, Mt. Vernon, Oak Harbor, and Freeland, Washington, and a loan production office in Anacortes, Washington. 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 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.
Michal D. Cann
Chairman, President & CEO
Savi Financial Corporation
The IR Group Inc.
IR CONTACT: 206-388-5785