NasdaqCM:RBNC

Stock Analysis Report

Executive Summary

Reliant Bancorp, Inc. operates as a financial holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area.

Rewards

Trading at 47.4% below its fair value

Earnings are forecast to grow 44.9% per year

Earnings grew by 45.6% over the past year

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Regions Financial

NYSE:RF

Share Price & News

How has Reliant Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

RBNC

-1.0%

US Banks

-0.09%

US Market


1 Year Return

1.0%

RBNC

14.7%

US Banks

23.9%

US Market

Return vs Industry: RBNC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: RBNC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RBNCIndustryMarket
7 Day-1.8%-1.0%-0.09%
30 Day0.04%-3.0%3.1%
90 Day-2.3%4.5%10.4%
1 Year2.1%1.0%18.0%14.7%26.6%23.9%
3 Year3.6%0.04%28.6%19.4%50.9%41.2%
5 Yearn/a86.7%65.8%78.1%58.5%

Price Volatility Vs. Market

How volatile is Reliant Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reliant Bancorp undervalued compared to its fair value and its price relative to the market?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RBNC ($22.17) is trading below our estimate of fair value ($42.13)

Significantly Below Fair Value: RBNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RBNC is poor value based on its PE Ratio (15.5x) compared to the Banks industry average (12.8x).

PE vs Market: RBNC is good value based on its PE Ratio (15.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RBNC is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: RBNC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Reliant Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

44.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBNC's forecast earnings growth (44.9% per year) is above the savings rate (1.7%).

Earnings vs Market: RBNC's earnings (44.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RBNC's revenue (30.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: RBNC's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBNC's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has Reliant Bancorp performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBNC has high quality earnings.

Growing Profit Margin: RBNC's current net profit margins (25.8%) are higher than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: RBNC's earnings have grown significantly by 27.1% per year over the past 5 years.

Accelerating Growth: RBNC's earnings growth over the past year (45.6%) exceeds its 5-year average (27.1% per year).

Earnings vs Industry: RBNC earnings growth over the past year (45.6%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: RBNC's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reliant Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RBNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: RBNC's debt is covered by short term assets (assets are 5x debt).


Financial Institutions Analysis

Asset Level: RBNC's level of assets compared to its equity is low.

Allowance for Bad Loans: RBNC has a sufficient allowance for bad loans.

Low Risk Liabilities: RBNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: RBNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RBNC's loans are broadly funded by customer deposits.

Level of Bad Loans: RBNC has an appropriate level of bad loans (0.47%)


Next Steps

Dividend

What is Reliant Bancorp's current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: RBNC's dividend (1.62%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: RBNC's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RBNC has been paying a dividend for less than 10 years.

Growing Dividend: RBNC's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), RBNC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBNC's dividends in 3 years are forecast to be well covered by earnings (20.4% payout ratio).


Next Steps

Management

What is the CEO of Reliant Bancorp's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

DeVan Ard (64yo)

2.6yrs

Tenure

US$747,459

Compensation

Mr. DeVan D. Ard, Jr. has been the Chairman of the Board and Chief Executive Officer of Reliant Bancorp, Inc. (formerly Commerce Union Bancshares, Inc.) since June 30, 2017 and serves as its President sinc ...


CEO Compensation Analysis

Compensation vs Market: DeVan's total compensation ($USD747.46K) is below average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: DeVan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Management: RBNC's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

64yo

Average Age

Experienced Board: RBNC's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Management Team

  • Louis Holloway (66yo)

    Executive VP

    • Tenure: 2yrs
    • Compensation: US$520.76k
  • DeVan Ard (64yo)

    Chairman

    • Tenure: 2.6yrs
    • Compensation: US$747.46k
  • Dan Dellinger (58yo)

    Executive VP & CFO

    • Tenure: 4.8yrs
    • Compensation: US$342.86k
  • John Wilson (62yo)

    Executive VP & Chief Loan Officer of Reliant Bank

    • Compensation: US$495.54k
  • David Kowalski (49yo)

    Senior VP

    • Tenure: 0.8yrs
  • Berlin Bagwell (63yo)

    Executive VP & Robertson County Market President

    • Compensation: US$212.72k
  • Eddie Gammon (60yo)

    Director of Operations & Executive VP

    • Kim York

      Chief strategy Officer & Executive VP

      • Jim Bratton

        Senior VP & Maury/Hickman County Market President

        • Mindy Logan

          Senior VP & Human Resources Director


          Board Members

          • Homey Aminmadani (73yo)

            Independent Director

            • Tenure: 4.8yrs
            • Compensation: US$53.00k
          • Darrell Freeman (54yo)

            Independent Director

            • Tenure: 4.8yrs
            • Compensation: US$48.00k
          • Louis Holloway (66yo)

            Executive VP

            • Tenure: 2yrs
            • Compensation: US$520.76k
          • DeVan Ard (64yo)

            Chairman

            • Tenure: 2.6yrs
            • Compensation: US$747.46k
          • Sharon Edwards (53yo)

            Lead Independent Director

            • Tenure: 4.7yrs
            • Compensation: US$60.50k
          • Connie McGee (58yo)

            Independent Director

            • Tenure: 0.7yrs
          • Rusty Vest (64yo)

            Independent Director

            • Tenure: 2yrs
            • Compensation: US$45.00k
          • Ron DeBerry (72yo)

            Director

            • Tenure: 14yrs
            • Compensation: US$47.60k
          • Trim Beasley (70yo)

            Independent Director

            • Tenure: 14yrs
            • Compensation: US$57.00k
          • Jim Hodges (64yo)

            Independent Director

            • Tenure: 12yrs
            • Compensation: US$44.00k

          Company Information

          Reliant Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Reliant Bancorp, Inc.
          • Ticker: RBNC
          • Exchange: NasdaqCM
          • Founded: 2006
          • Industry: Regional Banks
          • Sector: Banks
          • Market Cap: US$248.085m
          • Shares outstanding: 11.20m
          • Website: https://www.reliantbank.com

          Number of Employees


          Location

          • Reliant Bancorp, Inc.
          • 1736 Carothers Parkway
          • Suite 100
          • Brentwood
          • Tennessee
          • 37027
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          RBNCNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDApr 2015

          Biography

          Reliant Bancorp, Inc. operates as a financial holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. It operates in two segments, Retail Banking and Residential Mortgage Banking. The company offers checking, savings, and money market deposit accounts; certificates of deposit; time deposits; and non-interest-bearing and interest bearing demand deposits. It also provides commercial, industrial, and agricultural loans; 1-4 family residential, 1-4 family HELOC, and multi-family and commercial real estate loans, as well as construction, land development, and farmland loans; consumer loans, such as loans for household, family, and other personal expenditures; loans to states and political subdivisions, and other depository institutions; and mortgage refinancing services. In addition, the company originates traditional first lien residential mortgage loans and first lien home equity lines of credit; and provides safe deposit boxes, debit cards, and official bank checks, as well as direct deposit, online and mobile banking, and automated teller machine services. As of December 31, 2018, it operated through a network of 16 full-service branch offices in Davidson, Hickman, Hamilton, Maury, Robertson, Rutherford, Sumner, and Williamson counties in Tennessee; and mortgage production offices in Williamson and Sumner counties. The company was formerly known as Commerce Union Bancshares, Inc. and changed its name to Reliant Bancorp, Inc. in January 2018. Reliant Bancorp, Inc. was founded in 2006 and is based in Brentwood, Tennessee. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/24 01:08
          End of Day Share Price2020/01/23 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.