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 Fourth-Quarter and Full-Year 2015 Results

 

23% year-over-year GAAP earnings growth and 8% loan growth

 

DEFIANCE, Ohio, January 21, 2016 -- 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 fourth quarter and twelve months ended December 31, 2015.

 

Fourth-quarter 2015 highlights over prior year fourth quarter include:

	●	GAAP net income of $1.9 million, an increase of 22.6 percent
	●	Return on average assets of 1.02 percent, up from 0.89 percent
	●	Loan growth from third quarter of $16.8 million, or 3.1 percent
	●	Fully tax equivalent (FTE) revenue up 11.7 percent
	●	Net interest margin (FTE) of 3.76 percent up 3 basis points
	●	Mortgage origination volume of $67.1 million, up $15.1 million, or 29.0 percent
	●	Positive operating leverage for the Company; expenses up 7.5 percent

 

Full-year 2015 highlights over the prior-year period include:

	●	GAAP net income of $7.6 million, an increase of 44.8 percent
	●	Diluted earnings per share of $1.19, an increase of 11.3 percent
	●	Return on average assets of 1.06 percent, up from 0.78 percent
	●	Loan growth up $41.3 million, or 8.0 percent
	●	Total revenue (FTE) up 15.5 percent
	●	Total operating expense up 3.7 percent
	●	Positive operating leverage of 4.2 times

 

Highlights		Three Months Ended												Full Year
($000’s except ratios and share data)		Dec. 2015				Dec. 2014				Change				Dec. 2015				Dec. 2014				Change
Operating revenue (FTE)		$	9,784			$	8,763				11.7	%		$	39,426			$	34,143				15.5	%
Interest income (FTE)			6,714				6,284				6.8				26,303				24,796				6.1
Interest expense			646				685				(5.7	)			2,584				3,480				(25.8	)
Net interest income (FTE)			6,068				5,599				8.4				23,719				21,316				11.3
Noninterest income			3,716				3,164				17.4				15,707				12,827				22.4
Noninterest expense			6,839				6,364				7.5				26,927				25,957				3.7
Net income			1,868				1,524				22.6				7,619				5,263				44.8
Net income available to common			1,624				1,524				6.6				6,663				5,263				26.6
Earnings per diluted share			0.29				0.30				(3.3	)			1.19				1.07				11.3
Net interest margin (FTE)			3.76	%			3.73	%			0.8				3.78	%			3.62	%			4.4
Return on assets			1.02	%			0.89	%			14.6				1.06	%			0.78	%			35.9
Return on equity			9.23	%			9.40	%			(1.8	)			9.69	%			8.74	%			10.9

 

 

“I am extremely pleased to report our strong operating results for the fourth quarter of 2015,” said Mark Klein, Chairman, President and CEO of SB Financial. “For 2015, our fully diluted earnings of $1.19 per share is up 11.3 percent. We had $17 million of loan growth for the quarter and for the full year, we were up $41 million, or 8 percent. Additionally, we successfully opened our new full-service location in Dublin, Ohio,as well as our purchase of a future full-service location in Bowling Green, Ohio.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total revenue, consisting of net interest income (FTE) and noninterest income, was up 11.7 percent from the fourth quarter of 2014, but down 3.3 percent from the linked quarter.

 

●

Net interest income (FTE) was up 8.4 percent for the fourth quarter, but down 1.6 percent compared to the linked quarter.

●

Net interest margin (FTE) was up 3 basis points for the fourth quarter, but down 11 basis points from the linked quarter.

●

Noninterest income was up 17.4 percent for the fourth quarter, but down 6.0 percent from the linked quarter.

●

Total revenue (FTE), for the full year of 2015 was $39.4 million compared to $34.1 million for the full year of 2014, which is a 15.5 percent increase. The increase was due to higher mortgage volume of $103 million and Small Business Administration Loan (SBA) sale gains of $0.56 million.

 

Mortgage Loan Business

 

Mortgage loan originations for the fourth quarter of 2015 were $67.1 million, up $15.1 million, or 29.0 percent, from the year-ago fourth quarter. For the year, originations are $322.7 million, up $102.9 million or 49.0 percent. Total sales of originated loans are up 55.2 percent to $270.5 million for the year.

 

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.76 million for the fourth quarter of 2015, compared to $1.05 million for the year-ago quarter or a 67.6 percent improvement. The mortgage servicing valuation adjustment for the fourth-quarter 2015 was a positive $0.06 million. The aggregate servicing valuation impairment ended the quarter at $0.30 million. The mortgage servicing portfolio at December 31, 2015, was $772.5 million, up $109.9 million, or 16.6 percent, from $662.7 million at December 31, 2014.

 

Mr. Klein noted, “The fourth quarter represented another quarter of solid mortgage production with a total of $67 million; a 29 percent increase from the prior year. This quarter, our new money production accounted for 86 percent of our volume, and our gain on sale was a healthy 1.66 percent. Our 2015 production volume represented our second highest year ever, and, since we began in 2006 we have originated nearly $2 billion in residential production.”

 

 

Mortgage Banking ($000’s)
		Dec. 2015				Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014
Mortgage originations		$	67,149			$	86,965			$	93,605			$	74,955			$	52,058
Mortgage sales			56,302				70,081				79,806				64,360				43,542
Mortgage servicing portfolio			772,533				750,958				723,100				684,390				662,662
Mortgage servicing rights			7,152				6,798				6,548				5,860				5,704
Mortgage servicing revenue:
Loan servicing fees			476				459				438				420				410
OMSR amortization			(157	)			(223	)			(219	)			(282	)			(174	)
Net administrative fees			319				236				219				138				236
OMSR valuation adjustment			64				(138	)			268				(80	)			(193	)
Net loan servicing fees			383				98				487				58				43
Gain on sale of mortgages			1,372				1,687				1,805				1,400				1,003
Mortgage banking revenue, net		$	1,755			$	1,785			$	2,292			$	1,458			$	1,046

 

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 $315.6 million as of December 31, 2015. For the fourth quarter of 2015, fee income as a percentage of total revenue was 38.3 percent and 40.2 percent for the full year.

 

For the fourth quarter of 2015, noninterest expense (NIE) was up $0.5 million, or 7.5 percent, compared to the same quarter last year. Compared to the linked quarter, NIE was up $0.2 million, or 3.2 percent. For the full year, noninterest expense was up $1.0 million, or 3.7 percent.

 

Mr. Klein stated, “Total fee income, while slightly down from the linked quarter, still represented more than 38 percent of total revenue. We are especially pleased with our mortgage production, and with the growing traction from our SBA lending group, which increased loan-sale-gains by 240 percent on a year over year basis.”

 

Fee Income / Noninterest Expense ($000’s)
		Dec. 2015				Jun. 2015				Jun. 2015				Mar. 2015				Dec. 2014
Fee Income		$	3,716			$	3,952			$	4,443			$	3,596			$	3,164
Fee Income / Total Revenue			38.3	%			39.4	%			43.5	%			39.4	%			36.5	%
Fee Income / Average Assets			2.0	%			2.2	%			2.5	%			2.0	%			1.8	%
Noninterest Expense		$	6,839			$	6,626			$	6,818			$	6,644			$	6,364
Efficiency Ratio			70.2	%			65.6	%			66.3	%			72.2	%			72.8	%
NIE / Average Assets			3.7	%			3.7	%			3.8	%			3.7	%			3.7	%

 

Balance Sheet

 

Total assets as of December 31, 2015, were $733.1 million, up 7.1 percent from a year ago. Total equity as of December 31, 2015, was $81.2 million, up 7.3 percent from a year ago.

 

Total loans held for investment were $557.7 million at December 31, 2015, up $41.3 million, or 8.0 percent, from December 31, 2014. Commercial real estate loans accounted for the majority of growth, up $25.2 million, or 11.6 percent. Residential real estate and consumer loans also rose $17.6 million and $2.7 million, or 15.5 percent and 5.2 percent, respectively.

 

 

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $93.5 million represented 12.8 percent of assets at December 31, 2015, and was up 5.1 percent from a year ago. Deposit balances of $586.5 million at December 31, 2015, increased by $35.5 million, or 6.5 percent, since December 31, 2014. Growth from the prior year included $20.7 million in checking and $14.8 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 $16.8 million, or 12 percent annualized. Nonperforming assets were down slightly from the linked quarter, but up compared to the prior year due to the impact of a commercial real estate credit that has been periodically delinquent over the past year.”

 

Loan Portfolio ($000’s)		Dec. 2015				Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Variance YOY
Commercial		$	86,542			$	83,741			$	84,297			$	85,022			$	88,329			$	(1,787	)
% of Total			15.5	%			15.5	%			16.0	%			16.6	%			17.1	%			(2.0	%)
Commercial RE			242,208				231,249				223,994				217,610				217,030				25,178
% of Total			43.4	%			42.8	%			42.9	%			42.5	%			42.0	%			11.6	%
Agriculture			43,835				46,102				45,724				44,266				46,217				(2,382	)
% of Total			7.9	%			8.5	%			8.8	%			8.7	%			9.0	%			(5.2	%)
Residential RE			130,806				126,840				116,944				114,702				113,214				17,592
% of Total			23.5	%			23.5	%			22.4	%			22.4	%			21.9	%			15.5	%
Consumer & Other			54,224				52,957				51,444				50,184				51,546				2,678
% of Total			9.7	%			9.7	%			9.9	%			9.8	%			10.0	%			5.2	%
Total Loans		$	557,659			$	540,889			$	522,403			$	511,784			$	516,336			$	41,323
Total Growth Percentage																							8.0	%

 

Deposit Bal. ($000’s)		Dec. 2015				Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Variance YOY
Non-Int DDA		$	113,113			$	102,460			$	96,322			$	96,638			$	97,853			$	15,257
% of Total			19.3	%			17.9	%			17.1	%			16.7	%			17.8	%			15.6	%
Interest DDA			126,443				126,816				127,362				133,145				121,043				5,400
% of Total			21.6	%			22.1	%			22.6	%			23.0	%			22.0	%			4.5	%
Savings			83,407				77,809				78,729				75,445				64,107				19,300
% of Total			14.2	%			13.6	%			14.0	%			13.1	%			11.6	%			30.1	%
Money Market			104,412				107,538				100,315				106,325				104,602				(190	)
% of Total			17.8	%			18.7	%			17.8	%			18.4	%			19.0	%			(0.2	%)
Certificates			159,038				158,945				160,198				166,730				163,301				(4,263	)
% of Total			27.1	%			27.7	%			28.5	%			28.8	%			29.6	%			(2.6	%)
Total Deposits		$	586,453			$	573,568			$	562,926			$	578,283			$	550,906			$	35,547
Total Growth Percentage																							6.5	%

 

 

Asset Quality

 

SB Financial continues to maintain above peer median asset quality, reporting nonperforming assets of $8.5 million as of December 31, 2015, up $2.2 million, or 34.3 percent, from the year-ago quarter. Compared to the linked quarter, total NPA’s were down 0.9 percent. The increase from the prior year 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 1.15 percent of nonperforming assets to total assets remains near the top quartile in its 65-bank peer group. The coverage of problem loans by the loan loss allowance was 85.8 percent at December 31, 2015, down from the 113.0 percent at December 31, 2014.

 

Summary of Nonperforming Assets ($000’s)

 

Nonperforming Category		Dec. 2015				Sep. 2015				Jun. 2015				Mar. 2015				Dec. 2014				Variance YOY
Commercial & Agriculture		$	196			$	453			$	702			$	1,413			$	1,387			$	(1,191	)
% of Total Com. & Ag. loans			0.15	%			0.35	%			0.54	%			1.09	%			1.03	%			(85.9	%)
Commercial RE			5,670				5,393				2,023				1,932				2,092				3,578
% of Total CRE loans			2.34	%			2.33	%			0.90	%			0.89	%			0.96	%			171.0	%
Residential RE			749				795				772				967				992				(243	)
% of Total Res. RE loans			0.57	%			0.63	%			0.66	%			0.84	%			0.88	%			(24.5	%)
Consumer & Other			32				101				112				138				138				(106	)
% of Total Cons. & Oth. loans			0.06	%			0.20	%			0.22	%			0.28	%			0.27	%			(76.8	%)
Total Nonaccruing Loans			6,646				6,742				3,609				4,450				4,609				2,037
% of Total Loans			1.19	%			1.25	%			0.69	%			0.87	%			0.93	%			44.2	%
Accruing Restructured Loans			1,500				1,576				1,595				1,524				1,384
Total Nonaccruing & Restructured Loans		$	8,146			$	8,318			$	5,204			$	5,974			$	5,993			$	2,153
% of Total Loans			1.46	%			1.54	%			1.00	%			1.17	%			1.16	%			35.9	%
Foreclosed Assets			286				188				180				207				285
Total Nonperforming Assets		$	8,432			$	8,506			$	5,384			$	6,181			$	6,278			$	2,154
% of Total Assets			1.15	%			1.18	%			0.76	%			0.86	%			0.92	%			34.3	%

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on January 22, 2015, at 11:00 a.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 18 banking centers in nine Ohio counties and one center in Fort Wayne, Indiana, with 22 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 preferred stock is 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)

 

		December				September				June				March				December
($ in Thousands)		2015				2015				2015				2015				2014
ASSETS
Cash and due from banks		$	20,459				18,372				21,709				49,765				28,197
Securities available for sale, at fair value			89,789				95,482				98,786				94,056				85,240
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			93,537				99,230				102,534				97,804				88,988
Loans held for sale			7,516				8,517				10,067				8,667				5,168
Loans, net of unearned income			557,659				540,889				522,403				511,784				516,336
Allowance for loan losses			(6,990	)			(7,076	)			(7,006	)			(6,830	)			(6,771	)
Net loans			550,669				533,813				515,397				504,954				509,565
Premises, equipment and software, net			19,010				17,619				16,432				15,407				13,604
Cash surrender value of life insurance			13,437				13,364				13,291				13,219				13,148
Goodwill			16,353				16,353				16,353				16,353				16,353
Core deposits and other intangibles			82				120				174				229				283
Foreclosed assets held for sale, net			286				188				180				207				285
Mortgage servicing rights			7,152				6,798				6,548				5,860				5,704
Accrued interest receivable			1,260				1,817				1,506				1,554				1,346
Other assets			3,310				3,046				3,017				3,536				1,587
Total assets		$	733,071				719,237				707,208				717,555				684,228
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	113,113				102,460				96,322				96,638				97,853
Interest bearing demand			126,443				126,816				127,362				133,145				121,043
Savings			83,447				77,809				78,729				75,445				64,107
Money market			104,412				107,538				100,315				106,325				104,602
Time deposits			159,038				158,945				160,198				166,730				163,301
Total deposits			586,453				573,568				562,926				578,283				550,906
Advances from Federal Home Loan Bank			35,000				30,000				34,000				30,000				30,000
Repurchase agreements			12,406				16,911				15,169				14,648				12,740
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			264				341				289				334				264
Other liabilities			7,397				7,782				6,391				6,880				4,325
Total liabilities			651,830				638,912				629,085				640,455				608,545
Equity
Preferred stock			13,983				13,983				13,983				13,983				13,983
Common stock			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,438				15,444				15,424				15,413				15,461
Retained earnings			40,059				38,705				36,930				35,429				34,379
Accumulated other comprehensive income			650				1,157				750				1,264				918
Treasury stock			(1,458	)			(1,533	)			(1,533	)			(1,558	)			(1,627	)
Total equity			81,241				80,325				78,123				77,100				75,683
Total liabilities and equity		$	733,071				719,237				707,208				717,555				684,228

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands, except share data)		At and for the Three Months Ended																				Twelve Months Ended
		December				September				June				March				December				December				December
		2015				2015				2015				2015				2014				2015				2014
Interest income
Loans
Taxable		$	6,086				6,152				5,835				5,619				5,707				23,692				22,457
Nontaxable			10				10				9				6				6				35				44
Securities
Taxable			357				382				395				372				300				1,506				1,198
Nontaxable			169				173				175				177				177				694				709
Total interest income			6,622				6,717				6,414				6,174				6,190				25,927				24,408
Interest expense
Deposits			492				492				500				495				483				1,979				1,984
Repurchase Agreements & Other			3				5				4				5				53				17				91
Federal Home Loan Bank advances			95				94				94				92				95				375				334
Trust preferred securities			56				53				53				51				54				213				1,071
Total interest expense			646				644				651				643				685				2,584				3,480
Net interest income			5,976				6,073				5,763				5,531				5,505				23,343				20,928
Provision for loan losses			150				100				500				350				150				1,100				450
Net interest income after provision for loan losses			5,826				5,973				5,263				5,181				5,355				22,243				20,478
Noninterest income
Wealth Management Fees			645				636				666				659				679				2,606				2,630
Customer service fees			711				734				702				632				686				2,779				2,691
Gain on sale of mtg. loans & OMSR's			1,372				1,687				1,805				1,400				1,003				6,264				4,228
Mortgage loan servicing fees, net			383				98				486				58				43				1,025				731
Gain on sale of non-mortgage loans			75				296				288				288				143				947				321
Data service fees			273				294				306				317				324				1,190				1,289
Net gain on sales of securities			-				-				-				-				104				-				160
Gain/(loss) on sale/disposal of assets			38				-				(1	)			(19	)			(15	)			18				(79	)
Other income			219				207				191				261				197				878				856
Total non-interest income			3,716				3,952				4,443				3,596				3,164				15,707				12,827
Noninterest expense
Salaries and employee benefits			3,855				3,650				3,935				3,477				3,179				14,917				13,185
Net occupancy expense			479				481				480				503				521				1,943				2,087
Equipment expense			566				568				524				565				625				2,223				2,525
Data processing fees			264				286				247				263				230				1,060				928
Professional fees			381				416				426				440				465				1,663				1,703
Marketing expense			157				146				142				149				166				594				564
Telephone and communication			103				96				98				90				91				387				404
Postage and delivery expense			168				198				201				234				197				801				783
State, local and other taxes			130				130				128				129				94				517				370
Employee expense			126				126				138				153				111				543				488
Intangible amortization expense			37				54				55				54				55				200				372
Other expenses			573				475				444				587				630				2,079				2,548
Total non-interest expense			6,839				6,626				6,818				6,644				6,364				26,927				25,957
Income before income tax expense			2,703				3,299				2,888				2,133				2,155				11,023				7,348
Income tax expense			835				1,035				897				637				631				3,404				2,085
Net income		$	1,868				2,264				1,991				1,496				1,524				7,619				5,263
Preferred Stock Dividends			244				244				244				225				-				956				-
Net income available to common shares			1,624				2,020				1,747				1,271				1,524				6,663				5,263
Common share data:
Basic earnings per common share		$	0.33				0.41				0.36				0.26				0.31				1.36				1.08
Diluted earnings per common share		$	0.29				0.3543				0.3109				0.2335				0.30				1.19				1.07
Average shares outstanding ($ in thousands):
Basic:			4,890				4,884				4,884				4,879				4,875				4,884				4,874
Diluted:			6,396				6,390				6,382				6,379				5,044				6,423				4,942

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended																				Twelve Months Ended
		December				September				June				March				December				December				December
		2015				2015				2015				2015				2014				2015				2014
SUMMARY OF OPERATIONS
Net interest income		$	5,976				6,073				5,763				5,531				5,505				23,343				20,928
Tax-equivalent adjustment		$	92				94				95				94				94				376				388
Tax-equivalent net interest income		$	6,068				6,167				5,858				5,625				5,599				23,719				21,316
Provision for loan loss		$	150				100				500				350				150				1,100				450
Noninterest income		$	3,716				3,952				4,443				3,596				3,164				15,707				12,827
Total revenue, tax-equivalent		$	9,784				10,119				10,301				9,221				8,763				39,426				34,143
Noninterest expense		$	6,839				6,626				6,818				6,644				6,364				26,927				25,957
Pre provision pretax income		$	2,853				3,399				3,388				2,483				2,305				12,123				7,798
Pretax income		$	2,703				3,299				2,888				2,133				2,155				11,023				7,348
Net income		$	1,868				2,264				1,991				1,496				1,524				7,619				5,263
Income available to common shareholders		$	1,624				2,020				1,747				1,271				1,524				6,663				5,263
PER SHARE INFORMATION:
Basic earnings per share		$	0.33				0.41				0.36				0.26				0.31				1.36				1.08
Diluted earnings per share		$	0.29				0.35				0.31				0.23				0.30				1.19				1.07
Common dividends		$	0.055				0.050				0.050				0.045				0.045				0.200				0.160
Book value per common share		$	12.81				12.68				12.33				12.18				11.96				12.81				11.96
Tangible book value per common share		$	10.39				10.21				9.75				9.53				9.24				10.39				9.24
Market price per common share		$	11.14				10.27				10.59				10.55				9.40				11.14				9.40
PERFORMANCE RATIOS:
Return on average assets			1.02	%			1.26	%			1.11	%			0.84	%			0.89	%			1.06	%			0.78	%
Return on average equity			9.23	%			11.42	%			10.26	%			7.82	%			9.40	%			9.69	%			8.74	%
Return on average tangible equity			14.80	%			18.55	%			16.90	%			13.03	%			13.03	%			15.84	%			12.22	%
Efficiency ratio			70.18	%			65.56	%			66.26	%			72.20	%			72.78	%			68.44	%			75.80	%
Earning asset yield			4.17	%			4.27	%			4.18	%			4.14	%			4.18	%			4.19	%			4.21	%
Cost of interest bearing liabilities			0.49	%			0.49	%			0.49	%			0.49	%			0.53	%			0.49	%			0.69	%
Net interest margin			3.71	%			3.81	%			3.70	%			3.64	%			3.66	%			3.72	%			3.55	%
Tax equivalent effect			0.05	%			0.06	%			0.06	%			0.07	%			0.07	%			0.06	%			0.07	%
Net interest margin - fully tax equivalent basis			3.76	%			3.87	%			3.76	%			3.71	%			3.73	%			3.78	%			3.62	%
Non interest income/Average assets			2.03	%			2.20	%			2.48	%			2.02	%			1.84	%			2.18	%			1.91	%
Non interest expense/Average assets			3.74	%			3.69	%			3.81	%			3.74	%			3.70	%			3.74	%			3.86	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	241				58				350				303				101				952				848
Recoveries		$	5				29				26				11				9				71				205
Net charge-offs		$	236				29				324				292				92				881				643
Nonaccruing loans/ Total loans			1.19	%			1.25	%			0.69	%			0.87	%			0.89	%			1.19	%			0.89	%
Nonperforming loans/ Total loans			1.46	%			1.54	%			1.00	%			1.17	%			1.16	%			1.46	%			1.16	%
Nonperforming assets/ Loans & OREO			1.51	%			1.57	%			1.03	%			1.21	%			1.22	%			1.51	%			1.22	%
Nonperforming assets/ Total assets			1.15	%			1.18	%			0.76	%			0.86	%			0.92	%			1.15	%			0.92	%
Allowance for loan loss/ Nonperforming loans			85.81	%			85.07	%			134.63	%			114.33	%			112.98	%			85.81	%			112.98	%
Allowance for loan loss/ Total loans			1.25	%			1.31	%			1.34	%			1.33	%			1.31	%			1.25	%			1.31	%
Net loan charge-offs/ Average loans (ann.)			0.17	%			0.02	%			0.25	%			0.23	%			0.07	%			0.17	%			0.13	%
Loan loss provision/ Net charge-offs			63.56	%			344.83	%			154.32	%			119.86	%			163.04	%			124.86	%			69.98	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			95.09	%			94.30	%			92.80	%			88.50	%			93.72	%			95.09	%			93.72	%
Equity/ Assets			11.08	%			11.17	%			11.05	%			10.74	%			11.06	%			11.08	%			11.06	%
Tangible equity/ Tangible assets			7.09	%			7.10	%			6.89	%			6.64	%			6.75	%			7.09	%			6.75	%
Tangible equity adjusted for conversion			9.04	%			9.09	%			8.92	%			8.63	%			8.84	%			9.04	%			8.84	%
END OF PERIOD BALANCES
Total loans		$	557,659				540,889				522,403				511,784				516,336				557,659				516,336
Total assets		$	733,071				719,237				707,208				717,555				684,228				733,071				684,228
Deposits		$	586,453				573,568				562,926				578,283				550,906				586,453				550,906
Stockholders equity		$	81,241				80,325				78,123				77,100				75,683				81,241				75,683
Intangibles		$	16,435				16,473				16,527				16,582				16,636				16,435				16,636
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	50,823				49,869				47,613				46,535				45,064				50,823				45,064
Full-time equivalent employees			214				209				207				198				190				214				190
Period end basic shares outstanding			4,891				4,884				4,884				4,881				4,875				4,891				4,875
Period end outstanding (Series A Converted)			1,451				1,451				1,451				1,451				1,451				1,451				1,451
AVERAGE BALANCES
Total loans		$	549,877				538,646				521,477				516,004				516,517				531,614				501,486
Total earning assets		$	644,783				638,266				622,643				605,956				600,851				628,047				589,332
Total assets		$	731,198				718,591				716,736				711,100				687,674				719,586				672,277
Deposits		$	585,922				572,801				576,250				568,885				551,906				575,840				535,560
Stockholders equity		$	80,911				79,301				77,649				76,534				64,846				78,618				60,186
Intangibles		$	16,450				16,500				16,555				16,609				16,664				16,529				16,787
Preferred equity		$	13,983				13,983				13,983				13,983				1,398				13,983				350
Tangible equity		$	50,478				48,818				47,111				45,942				46,784				48,106				43,049
Average basic shares outstanding			4,890				4,884				4,884				4,879				4,875				4,884				4,874
Average diluted shares outstanding			6,396				6,390				6,382				6,379				5,044				6,423				4,942

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three & Twelve Months Ended December 31, 2015 and 2014

 

($ in Thousands)		Three Months Ended December 31, 2015												Three Months Ended December 31, 2014
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	77,944				357				1.83	%		$	66,235				300				1.81	%
Nontaxable securities			16,962				256				6.04	%			18,099				268				5.93	%
Loans, net			549,877				6,101				4.44	%			516,517				5,717				4.43	%
Total earning assets			644,783				6,714				4.17	%			600,851				6,284				4.18	%
Cash and due from banks			32,284												35,261
Allowance for loan losses			(7,100	)											(6,730	)
Premises and equipment			17,974												13,686
Other assets			43,257												44,606
Total assets		$	731,198											$	687,674
Liabilities
Savings and interest bearing demand		$	314,959				95				0.12	%		$	290,329				40				0.06	%
Time deposits			159,777				397				0.99	%			165,227				443				1.07	%
Repurchase agreements & Other			14,527				3				0.08	%			20,582				53				1.03	%
Advances from Federal Home Loan Bank			29,897				95				1.27	%			30,000				95				1.27	%
Trust preferred securities			10,310				56				2.17	%			10,310				54				2.10	%
Total interest bearing liabilities			529,470				646				0.49	%			516,448				685				0.53	%
Non interest bearing demand			111,186								0.40	%			96,350								0.45	%
Other liabilities			9,631												10,030
Total liabilities			650,287												622,828
Equity			80,911												64,846
Total liabilities and equity		$	731,198											$	687,674
Net interest income (tax equivalent basis)						$	6,068											$	5,599
Net interest income as a percent of average interest-earning assets											3.76	%											3.73	%

 

		Twelve Months Ended December 31, 2015												Twelve Months Ended December 31, 2014
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	78,840				1,506				1.91	%		$	69,795				1,198				1.72	%
Nontaxable securities			17,593				1,052				5.98	%			18,051				1,074				5.95	%
Loans, net			531,614				23,745				4.47	%			501,486				22,524				4.49	%
Total earning assets			628,047				26,303				4.19	%			589,332				24,796				4.21	%
Cash and due from banks			38,895												24,665
Allowance for loan losses			(6,979	)											(6,785	)
Premises and equipment			16,427												13,725
Other assets			43,196												51,340
Total assets		$	719,586											$	672,277
Liabilities
Savings and interest bearing demand		$	309,169				346				0.11	%		$	275,188				105				0.04	%
Time deposits			162,245				1,633				1.01	%			171,399				1,879				1.10	%
Repurchase agreements & Other			15,749				17				0.11	%			18,764				91				0.48	%
Advances from Federal Home Loan Bank			29,996				375				1.25	%			24,294				334				1.37	%
Trust preferred securities			10,310				213				2.07	%			17,448				1,071				6.14	%
Total interest bearing liabilities			527,469				2,584				0.49	%			507,093				3,480				0.69	%
Non interest bearing demand			104,426								0.41	%			88,973								0.58	%
Other liabilities			9,073												16,025
Total liabilities			640,968												612,091
Equity			78,618												60,186
Total liabilities and equity		$	719,586											$	672,277
Net interest income (tax equivalent basis)						$	23,719											$	21,316
Net interest income as a percent of average interest-earning assets											3.78	%											3.62	%

 

 

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