Exhibit 99.1

 

 

 

Investor Contact Information:

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

 

SB Financial Group, Inc. Announces Third-Quarter and Nine-Month 2015 Results

50% year-over-year GAAP earnings growth and 7% loan growth

 

DEFIANCE, Ohio, October 26, 2015 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, item and statement processing services, today reported earnings for the third quarter and nine months ended September 30, 2015.

 

Third-quarter 2015 highlights over prior year include:

 

	●	GAAP net income of $2.3 million, an increase of 49.6 percent; Fully-diluted 33.5 percent

	●	Return on average assets of 1.26 percent, up from 0.90 percent

	●	Loan growth up $35.0 million, or 6.9 percent

	●	Fully tax equivalent (FTE) revenue up 9.3 percent

	●	Net interest margin (FTE) of 3.87 percent up 23 basis points

	●	Mortgage origination volume of $87.0 million, up $19.5 million, or 28.9 percent

●

Positive operating leverage for the Company; expenses down 3.8 percent

 

Nine-Months 2015 highlights over the prior-year, period include:

 

	●	GAAP net income of $5.8 million, an increase of 53.9 percent

	●	Return on average assets of 1.07 percent, up from 0.75 percent

	●	Total revenue (FTE) up 16.8 percent

	●	Total operating expense up 2.5 percent

●

Positive operating leverage of 6.6 times

 

Highlights		Three Months Ended												Nine Months Ended
($000’s except ratios and share data)		Sep. 2015				Sep. 2014				% Change				Sep. 2015				Sep. 2014				% Change
Operating revenue (FTE)		$	10,119			$	9,255				9.3	%		$	29,641			$	25,380				16.8	%
Interest income (FTE)			6,811				6,417				6.1				19,588				18,512				5.8
Interest expense			644				971				(33.7	)			1,938				2,795				(30.7	)
Net interest income (FTE)			6,167				5,446				13.2				17,650				15,717				12.3
Noninterest income			3,952				3,809				3.8				11,991				9,663				24.1
Noninterest expense			6,626				6,888				(3.8	)			20,088				19,593				2.5
Net income			2,264				1,513				49.6				5,751				3,738				53.9
Net income available to common			2,020				1,513				33.5				5,039				3,738				34.8
Earnings per diluted share			0.35				0.31				12.9				0.89				0.76				17.1
Net interest margin (FTE)			3.87	%			3.64	%			6.3				3.78	%			3.54	%			6.8
Return on assets			1.26	%			0.90	%			40.0				1.07	%			0.75	%			42.7
Return on common equity			11.42	%			10.14	%			12.6				9.84	%			8.54	%			15.2

 

 

“I am extremely pleased to report our operating results revealing the best earnings quarter for SB Financial since the fourth quarter of 2003,” said Mark Klein, Chairman, President and Chief Executive Officer of SB Financial. “For the full year, our fully diluted EPS of $0.89 per share is up 17.1 percent. In addition, we opened two new loan production offices; one in Tiffin, Ohio and our first in the Michigan market of Lambertville. Additionally, our new full-service location in Dublin, Ohio is set to open this week.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total revenue, consisting of net interest income (FTE) and noninterest income, was up 9.3 percent from the third quarter of 2014, but down 1.8 percent from the linked quarter.

 

●

Net interest income (FTE) was up 13.2 percent for the third quarter, and up 5.3 percent compared to the linked quarter.

 

●

Net interest margin (FTE) was up 23 basis points for the third quarter, and up 9 basis points from the linked quarter.

 

●

Net interest margin was impacted by the payoff of the fixed rate trust preferred securities late in the third quarter of 2014. For the third quarter of 2015, this early payoff increased margin by 16 basis points.

 

●

Noninterest income was up 3.8 percent for the third quarter, but down 11.1 percent from the linked quarter.

 

●

Total revenue (FTE), for the first nine months of 2015 was $29.6 million compared to $25.4 million for the first nine months of 2014, which is a 16.8 percent increase. The increase was due to higher mortgage volume of $87 million and Small Business Administration Loan (SBA) sale gains of $0.72 million.

 

Mortgage Loan Business

 

Mortgage loan originations for the third quarter of 2015 were $87.0 million, up $19.5 million, or 28.8 percent, from the year-ago third quarter. For the year, originations are $255.5 million, up $87.9 million or 52.4 percent. Total sales of originated loans are up 55.2 percent to $214.2 million for the year.

 

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.79 million for the third quarter of 2015, compared to $1.73 million for the year-ago quarter. The mortgage servicing valuation adjustment for the third-quarter 2015 was a negative $0.14 million. The aggregate servicing valuation impairment ended the quarter at $0.36 million. The mortgage servicing portfolio at September 30, 2015, was $751.0 million, up $101.3 million, or 15.6 percent, from $649.7 million at September 30, 2014.

 

Mr. Klein noted, “The third quarter production represented another quarter of solid mortgage production with a total of $87 million; a 29 percent increase from the prior year. This quarter, our new money production accounted for 93 percent of our volume, and our gain on sale was a healthy 1.49 percent. Both of these metrics represent a strong performance in all of our markets served, as well as new business and disciplined pricing for State Bank.”

 

 

Mortgage Banking ($000’s)
		Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Sep. 2014
Mortgage originations		$	86,965			$	93,605			$	74,955			$	52,058			$	67,502
Mortgage sales			70,081				79,806				64,360				43,542				60,982
Mortgage servicing portfolio			750,958				723,100				684,390				662,662				649,669
Mortgage servicing rights			6,798				6,548				5,860				5,704				5,720
Mortgage servicing revenue:
Loan servicing fees			459				438				420				410				400
OMSR amortization			(223	)			(219	)			(282	)			(174	)			(175	)
Net administrative fees			236				219				138				236				225
OMSR valuation adjustment			(138	)			268				(80	)			(193	)			62
Net loan servicing fees			98				487				58				43				287
Gain on sale of mortgages			1,687				1,805				1,400				1,003				1,442
Mortgage banking revenue, net		$	1,785			$	2,292			$	1,458			$	1,046			$	1,729

 

Fee Income and Noninterest Expense

 

SB Financial’s fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and income from bank-owned life insurance. Wealth management assets under management stood at $310.7 million as of September 30, 2015. For the third quarter of 2015, fee income as a percentage of total revenue was 39.4 percent and 40.8 percent year to date.

 

For the third quarter of 2015, noninterest expense (NIE) was down $0.3 million, or 3.8 percent, compared to the same quarter last year. Compared to the linked quarter, NIE was down $0.2 million, or 2.8 percent.

 

Mr. Klein stated, “Total fee income, while slightly down from a strong linked quarter, still represented over 39 percent of total revenue. We are especially pleased with our mortgage production and now we are gaining traction from our SBA lending group, which has increased loan-sale-gains by 390 percent on a year to date basis.”

 

Fee Income / Noninterest Expense ($000’s)
		Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Sep. 2014
Fee Income		$	3,952			$	4,443			$	3,596			$	3,164			$	3,809
Fee Income / Total Revenue			39.4	%			43.5	%			39.4	%			36.5	%			41.6	%
Fee Income / Average Assets			2.2	%			2.5	%			2.0	%			1.8	%			2.3	%
Noninterest Expense		$	6,626			$	6,818			$	6,644			$	6,364			$	6,888
Efficiency Ratio			65.6	%			66.3	%			72.2	%			72.8	%			74.6	%
NIE / Average Assets			3.7	%			3.8	%			3.7	%			3.7	%			4.1	%

 

 

Balance Sheet

 

Total assets as of September 30, 2015, were $719.2 million, up 8.2 percent from a year ago. Total equity as of September 30, 2015, was $80.3 million, up 33.3 percent from a year ago. Equity balances included the net impact of the capital-raise completed in the fourth quarter of 2014, which added $14.0 million to total equity through the public offering of depository shares, each representing a 1/100^th interest in the 6.50 percent Noncumulative Convertible Preferred Shares, Series A.

 

Total loans held for investment were $540.9 million at September 30, 2015, up $35.0 million, or 6.9 percent, from September 30, 2014. Residential real estate loans accounted for the majority of growth, up $19.1 million, or 17.8 percent. Commercial real estate and agricultural loans also rose $18.3 million and $1.9 million, or 8.6 percent, and 4.4 percent, respectively.

 

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $99.2 million represented 13.8 percent of assets at September 30, 2015, and was up 16.9 percent from a year ago. Deposit balances of $573.6 million at September 30, 2015, increased by $38.3 million, or 7.2 percent, since September 30, 2014. Growth from the prior year included $19.2 million in checking and $19.1 million in savings and time deposit balances.

 

Mr. Klein said, “Loan volume accelerated this quarter, as we had balance growth from the linked quarter of $18.5 million or 14 percent annualized. Nonperforming assets were impacted by a commercial real estate credit that has been periodically delinquent over the past year. While this specific credit moved our NPA ratio above 1 percent for the first time since March of 2014, we feel it will be resolved positively in the near term.”

 

Loan Portfolio ($000’s)		Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Sep. 2014				Variance YOY
Commercial		$	83,741			$	84,297			$	85,022			$	88,329			$	90,407			$	(6,666	)
% of Total			15.5	%			16.0	%			16.6	%			17.1	%			17.9	%			(7.4	%)
Commercial RE			231,249				223,994				217,610				217,030				212,964				18,285
% of Total			42.8	%			42.9	%			42.5	%			42.0	%			42.1	%			8.6	%
Agriculture			46,102				45,724				44,266				46,217				44,162				1,940
% of Total			8.5	%			8.8	%			8.7	%			9.0	%			8.7	%			4.4	%
Residential RE			126,840				116,944				114,702				113,214				107,712				19,128
% of Total			23.5	%			22.4	%			22.4	%			21.9	%			21.3	%			17.8	%
Consumer & Other			52,957				51,444				50,184				51,546				50,679				2,278
% of Total			9.7	%			9.9	%			9.8	%			10.0	%			10.0	%			4.5	%
Total Loans		$	540,889			$	522,403			$	511,784			$	516,336			$	505,924			$	34,965
Total Growth Percentage																							6.9	%

 

Deposit Bal. ($000’s)		Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Sep. 2014				Variance YOY
Non-Int DDA		$	102,460			$	96,322			$	96,638			$	97,853			$	90,261			$	12,199
% of Total			17.9	%			17.1	%			16.7	%			17.8	%			16.9	%			13.5	%
Interest DDA			126,816				127,362				133,145				121,043				119,805				7,011
% of Total			22.1	%			22.6	%			23.0	%			22.0	%			22.4	%			5.9	%
Savings			77,809				78,729				75,445				64,107				61,770				16,039
% of Total			13.6	%			14.0	%			13.1	%			11.6	%			11.5	%			26.0	%
Money Market			107,538				100,315				106,325				104,602				96,506				11,032
% of Total			18.7	%			17.8	%			18.4	%			19.0	%			18.0	%			11.4	%
Certificates			158,945				160,198				166,730				163,301				166,919				(7,974	)
% of Total			27.7	%			28.5	%			28.8	%			29.6	%			31.2	%			(4.8	%)
Total Deposits		$	573,568			$	562,926			$	578,283			$	550,906			$	535,261			$	38,307
Total Growth Percentage																							7.2	%

 

 

Asset Quality

 

SB Financial continues to maintain above peer median asset quality, reporting nonperforming assets of $8.5 million as of September 30, 2015, up $3.1 million, or 58.6 percent, from the year-ago quarter. The increase was the result of an existing delinquent commercial real estate credit that has moved to foreclosure. The Company feels the valuation of the property will approximate the loan commitment when the situation is resolved. SB Financial’s 1.18 percent of nonperforming assets to total assets remains near the top quartile in its 64-bank peer group. The coverage of problem loans by the loan loss allowance was 85.1 percent at September 30, 2015, down from the 139.2 percent at September 30, 2014.

 

Summary of Nonperforming Assets ($000’s)

 

Nonperforming Loan Category		Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Sep. 2014				Variance YOY
Commercial		$	453			$	702			$	1,413			$	1,387			$	1,397			$	(944	)
% of Total Commercial loans			0.54	%			0.84	%			1.66	%			1.77	%			1.55	%			(67.5	%)
Commercial RE			5,393				2,023				1,932				2,092				616				4,777
% of Total CRE loans			2.33	%			0.90	%			0.89	%			0.96	%			0.29	%			775.5	%
Residential RE			795				772				967				992				1,015				(220	)
% of Total Res. RE loans			1.72	%			0.66	%			0.84	%			0.88	%			0.94	%			(21.7	%)
Consumer & Other			101				112				138				138				174				(73	)
% of Total Cons. & Other loans			0.08	%			0.22	%			0.27	%			0.27	%			0.34	%			(42.0	%)
Total Nonaccruing Loans			6,742				3,609				4,450				4,609				3,202				3,540
% of Total Loans			1.25	%			0.69	%			0.87	%			0.93	%			0.63	%			110.6	%
Accruing Restructured Loans			1,576				1,595				1,524				1,384				1,620
Total Nonaccruing & Restructured Loans		$	8,318			$	5,204			$	5,974			$	5,993			$	4,822			$	3,496
% of Total Loans			1.54	%			1.00	%			1.17	%			1.16	%			0.95	%			72.5	%
Foreclosed Assets			188				180				207				285				540
Total Nonperforming Assets		$	8,506			$	5,384			$	6,181			$	6,278			$	5,362			$	3,144
% of Total Assets			1.18	%			0.76	%			0.86	%			0.92	%			0.81	%			58.6	%

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on October 27, 2015, at 2:30 p.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.

 

About SB Financial Group

 

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company with two wholly-owned operating subsidiaries: State Bank and RDSI. State Bank provides a full range of financial services for consumers and small businesses, including wealth management, mortgage banking and commercial and agricultural lending, operating through 17 banking centers in eight Ohio counties and one center in Fort Wayne, Indiana, with 18 full service ATMs. The Company has four loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. RDSI provides item processing services to community banks located primarily in the Midwest. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”. SB Financial’s depository shares, each representing a 1/100^th interest in the preferred shares, Series A are listed on the NASDAQ Capital Market under the symbol “SBFGP”.

 

 

In May 2015, SB Financial was ranked #163 on the American Banker Magazine’s list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity (“ROE”) as of December 31, 2014.

 

Forward-Looking Statements

 

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

 

Non-GAAP Financial Measures

 

In addition to results presented in accordance with GAAP, this release contains certain non-GAAP financial measures. Management believes that providing certain non-GAAP financial measures provides investors with information useful in understanding the Company’s financial performance, its performance trends and financial position. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.

 

###

 

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		September				June				March				December				September
($ in Thousands)		2015				2015				2015				2014				2014
ASSETS
Cash and due from banks		$	18,372				21,709				49,765				28,197				21,870
Securities available for sale, at fair value			95,482				98,786				94,056				85,240				81,148
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			99,230				102,534				97,804				88,988				84,896
Loans held for sale			8,517				10,067				8,667				5,168				6,736
Loans, net of unearned income			540,889				522,403				511,784				516,336				505,924
Allowance for loan losses			(7,076	)			(7,006	)			(6,830	)			(6,771	)			(6,713	)
Net loans			533,813				515,397				504,954				509,565				499,211
Premises and equipment, net			17,619				16,432				15,407				13,604				13,256
Cash surrender value of life insurance			13,364				13,291				13,219				13,148				13,074
Goodwill			16,353				16,353				16,353				16,353				16,353
Core deposits and other intangibles			120				174				229				283				338
Foreclosed assets held for sale, net			188				180				207				285				540
Mortgage servicing rights			6,798				6,548				5,860				5,704				5,720
Accrued interest receivable			1,817				1,506				1,554				1,346				1,853
Other assets			3,046				3,017				3,536				1,587				709
Total assets		$	719,237				707,208				717,555				684,228				664,556
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	102,460				96,322				96,638				97,853				90,261
Interest bearing demand			126,816				127,362				133,145				121,043				119,805
Savings			77,809				78,729				75,445				64,107				61,770
Money market			107,538				100,315				106,325				104,602				96,506
Time deposits			158,945				160,198				166,730				163,301				166,919
Total deposits			573,568				562,926				578,283				550,906				535,261
Notes payable			-				-				-				-				7,000
Advances from Federal Home Loan Bank			30,000				34,000				30,000				30,000				30,000
Repurchase agreements			16,911				15,169				14,648				12,740				17,902
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			341				289				334				264				355
Other liabilities			7,782				6,391				6,880				4,325				3,462
Total liabilities			638,912				629,085				640,455				608,545				604,290
Equity
Preferred stock			13,983				13,983				13,983				13,983				-
Common stock			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,444				15,424				15,413				15,461				15,418
Retained earnings			38,705				36,930				35,429				34,379				33,075
Accumulated other comprehensive income			1,157				750				1,264				918				831
Treasury stock			(1,533	)			(1,533	)			(1,558	)			(1,627	)			(1,627	)
Total equity			80,325				78,123				77,100				75,683				60,266
Total liabilities and equity		$	719,237				707,208				717,555				684,228				664,556

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands, except share data)		At and for the Three Months Ended																				Nine Months Ended
		September				June				March				December				September				September				September
		2015				2015				2015				2014				2014				2015				2014
Interest income
Loans
Taxable		$	6,152				5,835				5,619				5,707				5,855				17,606				16,750
Nontaxable			10				9				6				6				9				25				38
Securities
Taxable			382				395				372				300				279				1,149				898
Nontaxable			173				175				177				177				178				525				532
Total interest income			6,717				6,414				6,174				6,190				6,321				19,305				18,218
Interest expense
Deposits			492				500				495				483				500				1,487				1,501
Repurchase Agreements & Other			5				4				5				53				23				14				38
Federal Home Loan Bank advances			94				94				92				95				94				280				239
Trust preferred securities			53				53				51				54				354				157				1,017
Total interest expense			644				651				643				685				971				1,938				2,795
Net interest income			6,073				5,763				5,531				5,505				5,350				17,367				15,423
Provision for loan losses			100				500				350				150				150				950				300
Net interest income after provision for loan losses			5,973				5,263				5,181				5,355				5,200				16,417				15,123
Noninterest income
Wealth Management Fees			636				666				659				679				670				1,961				1,951
Customer service fees			734				702				632				686				730				2,068				2,005
Gain on sale of mtg. loans & OMSR's			1,687				1,805				1,400				1,003				1,442				4,892				3,225
Mortgage loan servicing fees, net			98				486				58				43				287				642				688
Gain on sale of non-mortgage loans			296				288				288				143				71				872				178
Data service fees			294				306				317				324				337				917				965
Net gain on sales of securities			-				-				-				104				-				-				56
Gain/(loss) on sale/disposal of assets			-				(1	)			(19	)			(15	)			(15	)			(20	)			(64	)
Other income			207				191				261				197				287				659				659
Total non-interest income			3,952				4,443				3,596				3,164				3,809				11,991				9,663
Noninterest expense
Salaries and employee benefits			3,650				3,935				3,477				3,179				3,435				11,062				10,006
Net occupancy expense			481				480				503				521				508				1,464				1,566
Equipment expense			568				524				565				625				616				1,657				1,900
Data processing fees			286				247				263				230				238				796				698
Professional fees			416				426				440				465				435				1,282				1,238
Marketing expense			146				142				149				166				105				437				398
Telephone and communication			96				98				90				91				94				284				313
Postage and delivery expense			198				201				234				197				195				633				586
State, local and other taxes			130				128				129				94				89				387				276
Employee expense			126				138				153				111				122				417				377
Intangible amortization expense			54				55				54				55				55				163				317
Other expenses			475				444				587				630				996				1,506				1,918
Total non-interest expense			6,626				6,818				6,644				6,364				6,888				20,088				19,593
Income before income tax expense			3,299				2,888				2,133				2,155				2,121				8,320				5,193
Income tax expense			1,035				897				637				631				607				2,569				1,454
Net income		$	2,264				1,991				1,496				1,524				1,513				5,751				3,738
Preferred Stock Dividends			244				244				225				-				-				712				-
Net income available to common			2,020				1,747				1,271				1,524				1,513				5,039				3,738
Common share data:
Basic earnings per common share		$	0.41				0.36				0.26				0.31				0.31				1.03				0.77
Diluted earnings per common share		$	0.35				0.31				0.23				0.30				0.31				0.89				0.76
Average shares outstanding ($ in thousands):
Basic:			4,884				4,884				4,879				4,875				4,875				4,882				4,873
Diluted:			6,390				6,382				6,379				5,044				4,900				6,422				4,896

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended																					Nine Months Ended
		September				June				March				December				September					September				September
SUMMARY OF OPERATIONS		2015				2015				2015				2014				2014					2015				2014
Net interest income		$	6,073				5,763				5,531				5,505				5,350					17,367				15,423
Tax-equivalent adjustment		$	94				95				94				94				96					283				294
Tax-equivalent net interest income		$	6,167				5,858				5,625				5,599				5,446					17,650				15,717
Provision for loan loss		$	100				500				350				150				150					950				300
Noninterest income		$	3,952				4,443				3,596				3,164				3,809					11,991				9,663
Total revenue, tax-equivalent		$	10,119				10,301				9,221				8,763				9,255					29,641				25,380
Noninterest expense		$	6,626				6,818				6,644				6,364				6,888					20,088				19,593
Pre provision pretax income		$	3,399				3,388				2,483				2,305				2,271					9,270				5,493
Pretax income		$	3,299				2,888				2,133				2,155				2,121					8,320				5,193
Net income		$	2,264				1,991				1,496				1,524				1,513					5,751				3,738
Income available to common shareholders		$	2,020				1,747				1,271				1,524				1,513					5,039				3,738
PER SHARE INFORMATION:
Basic earnings per share		$	0.41				0.36				0.26				0.31				0.31					1.03				0.77
Diluted earnings per share		$	0.35				0.31				0.23				0.30				0.31					0.89				0.76
Common dividends		$	0.050				0.050				0.045				0.045				0.040					0.145				0.115
Book value per common share		$	12.68				12.33				12.18				11.96				12.36					12.68				12.36
Tangible book value per common share		$	10.21				9.75				9.53				9.24				8.94					10.21				8.94
Market price per common share		$	10.27				10.59				10.55				9.40				9.05					10.27				9.05
PERFORMANCE RATIOS:
Return on average assets			1.26	%			1.11	%			0.84	%			0.89	%			0.90	%				1.07	%			0.75	%
Return on average equity			11.42	%			10.26	%			7.82	%			9.40	%			10.14	%				9.84	%			8.54	%
Return on avg. tangible common equity			18.55	%			16.90	%			13.03	%			13.03	%			14.09	%				16.20	%			12.00	%
Efficiency ratio			65.56	%			66.26	%			72.20	%			72.78	%			74.60	%				67.87	%			76.84	%
Earning asset yield			4.27	%			4.18	%			4.14	%			4.18	%			4.29	%				4.20	%			4.16	%
Cost of interest bearing liabilities			0.49	%			0.49	%			0.49	%			0.53	%			0.76	%				0.49	%			0.74	%
Net interest margin			3.81	%			3.70	%			3.64	%			3.66	%			3.58	%				3.72	%			3.47	%
Tax equivalent effect			0.06	%			0.06	%			0.07	%			0.07	%			0.06	%				0.06	%			0.07	%
Net interest margin - fully tax equivalent basis			3.87	%			3.76	%			3.71	%			3.73	%			3.64	%				3.78	%			3.54	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	58				350				303				101				94					711				747
Recoveries		$	29				26				11				9				90					66				196
Net charge-offs		$	29				324				292				92				4					645				551
Nonaccruing loans/ Total loans			1.25	%			0.69	%			0.87	%			0.89	%			0.63	%				1.25	%			0.63	%
Nonperforming loans/ Total loans			1.54	%			1.00	%			1.17	%			1.16	%			0.95	%				1.54	%			0.95	%
Nonperforming assets/ Loans & OREO			1.57	%			1.03	%			1.21	%			1.22	%			1.06	%				1.57	%			1.06	%
Nonperforming assets/ Total assets			1.18	%			0.76	%			0.86	%			0.92	%			0.81	%				1.18	%			0.81	%
Allowance for loan loss/ Nonperforming loans			85.07	%			134.63	%			114.33	%			112.98	%			139.22	%				85.07	%			139.22	%
Allowance for loan loss/ Total loans			1.31	%			1.34	%			1.33	%			1.31	%			1.33	%				1.31	%			1.33	%
Net loan charge-offs/ Average loans (ann.)			0.02	%			0.25	%			0.23	%			0.07	%			N/M					0.16	%			0.15	%
Loan loss provision/ Net charge-offs			344.83	%			154.32	%			119.86	%			163.04	%			N/M					147.29	%			54.45	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			94.30	%			92.80	%			88.50	%			93.72	%			94.52	%				94.30	%			94.52	%
Equity/ Assets			11.17	%			11.05	%			10.74	%			11.06	%			9.07	%				11.17	%			9.07	%
Tangible equity/ Tangible assets			7.10	%			6.89	%			6.64	%			6.75	%			6.73	%				7.10	%			6.73	%
Tangible equity adjusted for conversion			9.09	%			8.92	%			8.63	%			8.84	%			6.73	%				9.09	%			6.73	%
END OF PERIOD BALANCES
Total loans		$	540,889				522,403				511,784				516,336				505,924					540,889				505,924
Total assets		$	719,237				707,208				717,555				684,228				664,556					719,237				664,556
Deposits		$	573,568				562,926				578,283				550,906				535,261					573,568				535,261
Stockholders equity		$	80,325				78,123				77,100				75,683				60,266					80,325				60,266
Intangibles		$	16,473				16,527				16,582				16,636				16,691					16,473				16,691
Preferred equity		$	13,983				13,983				13,983				13,983				-					13,983				-
Tangible equity		$	49,869				47,613				46,535				45,064				43,575					49,869				43,575
Full-time equivalent employees			209				207				198				190				195					209				195
Period end basic shares outstanding			4,884				4,884				4,881				4,875				4,875					4,884				4,875
Period end outstanding (Series A Converted)			1,451				1,451				1,451				1,451				-					1,451				-
AVERAGE BALANCES
Total loans		$	538,646				521,477				516,004				516,517				512,151					525,459				496,421
Total earning assets		$	638,266				622,643				605,956				600,851				598,223					622,407				592,515
Total assets		$	718,591				716,736				711,100				687,674				673,213					715,670				664,589
Deposits		$	572,801				576,250				568,885				551,906				534,841					572,500				530,314
Stockholders equity		$	79,301				77,649				76,534				64,846				59,684					77,871				58,330
Intangibles		$	16,500				16,555				16,609				16,664				16,719					16,555				16,827
Preferred equity		$	13,983				13,983				13,983				1,398				-					13,983				-
Tangible equity		$	48,818				47,111				45,942				46,784				42,965					47,333				41,503
Average basic shares outstanding			4,884				4,884				4,879				4,875				4,875					4,882				4,873
Average diluted shares outstanding			6,390				6,382				6,379				5,044				4,900					6,422				4,896

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three & Nine Months Ended September 30, 2015 and 2014

 

($ in Thousands)		Three Months Ended September 30, 2015												Three Months Ended September 30, 2014
		Average Balance				Interest				Average Rate				Average Balance				Interest				Average Rate
Assets
Taxable securities		$	82,015				382				1.86	%		$	68,275				279				1.63	%
Nontaxable securities			17,605				262				5.96	%			17,797				270				6.08	%
Loans, net			538,646				6,167				4.58	%			512,151				5,869				4.58	%
Total earning assets			638,266				6,811				4.27	%			598,223				6,417				4.29	%
Cash and due from banks			27,300												23,672
Allowance for loan losses			(7,023	)											(6,652	)
Premises and equipment			17,173												13,791
Other assets			42,875												44,179
Total assets		$	718,591											$	673,213
Liabilities
Savings and interest bearing demand		$	311,337				91				0.12	%		$	271,848				40				0.06	%
Time deposits			160,519				401				1.00	%			172,886				460				1.06	%
Repurchase agreements & Other			17,573				5				0.11	%			20,639				6				0.12	%
Advances from Federal Home Loan Bank			30,043				94				1.25	%			30,000				94				1.25	%
Trust preferred securities			10,310				53				2.06	%			18,043				371				8.22	%
Total interest bearing liabilities			529,782				644				0.49	%			513,416				971				0.76	%
Non interest bearing demand			100,945								0.41	%			90,107								0.64	%
Other liabilities			8,563												10,006
Total liabilities			639,290												613,529
Equity			79,301												59,684
Total liabilities and equity		$	718,591											$	673,213
Net interest income (tax equivalent basis)						$	6,167											$	5,446
Net interest income as a percent of average interest-earning assets											3.87	%											3.64	%

 

		Nine Months Ended September 30, 2015												Nine Months Ended September 30, 2014
		Average Balance				Interest				Average Rate				Average Balance				Interest				Average Rate
Assets
Taxable securities		$	79,141				1,149				1.94	%		$	77,134				898				1.55	%
Nontaxable securities			17,807				795				5.95	%			18,960				806				5.67	%
Loans, net			525,459				17,644				4.48	%			496,421				16,808				4.51	%
Total earning assets			622,407				19,588				4.20	%			592,515				18,512				4.16	%
Cash and due from banks			41,123												21,095
Allowance for loan losses			(6,938	)											(6,804	)
Premises and equipment			15,899												13,739
Other assets			43,179												44,044
Total assets		$	715,670											$	664,589
Liabilities
Savings and interest bearing demand		$	310,542				251				0.11	%		$	270,086				105				0.05	%
Time deposits			163,076				1,236				1.01	%			173,480				1,396				1.07	%
Repurchase agreements & Other			16,160				14				0.12	%			18,457				21				0.15	%
Advances from Federal Home Loan Bank			30,029				280				1.24	%			22,371				239				1.42	%
Trust preferred securities			10,310				157				2.03	%			19,589				1,034				7.04	%
Total interest bearing liabilities			530,117				1,938				0.49	%			503,983				2,795				0.74	%
Non interest bearing demand			98,882								0.41	%			86,748								0.63	%
Other liabilities			8,800												15,528
Total liabilities			637,799												606,259
Equity			77,871												58,330
Total liabilities and equity		$	715,670											$	664,589
Net interest income (tax equivalent basis)						$	17,650											$	15,717
Net interest income as a percent of average interest-earning assets											3.78	%											3.54	%

 

 

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