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 2016 Results

 

Year-over-year earnings per share growth of 14% and loan growth of 15%

 

DEFIANCE, Ohio, October 20, 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 third-quarter and nine-months ended September 30, 2016.

 

Third-quarter 2016 highlights over prior-year third quarter include:

 

	●	Net income of $2.5 million, an increase of 12.5 percent, or $0.3 million

	●	Diluted earnings per share (EPS) of $0.40, an increase of 14.3 percent, or $0.05 per share

	●	Loan growth of $78.5 million, or 14.5 percent

	●	Deposit growth of $88.6 million, or 15.4 percent

	●	Fully Taxable Equivalent (FTE) net interest margin of 3.82 percent, down 5 basis points

●

Mortgage origination volume of $117.2 million, an increase of 34.8 percent, or $30.2 million; servicing portfolio of $868.8 million, up 15.7 percent, or $117.8 million

 

Nine-months ended September 30, 2016, highlights over prior-year nine months include:

 

	●	Net income of $6.5 million, an increase of 12.5 percent, or $0.7 million

	●	Diluted earnings per share of $1.01, an increase of 14.6 percent, or $0.13 per share

●

Return on average assets of 1.10 percent

 

Highlights		Three Months Ended												Nine Months Ended
($000’s except ratios and share data)		Sep. 2016				Sep. 2015				% Change				Sep. 2016				Sep. 2015				% Change
Operating revenue (FTE)		$	11,772			$	10,119				16.3	%		$	32,227			$	29,641				8.7	%
Interest income (FTE)			7,585				6,811				11.4				21,799				19,588				11.3
Interest expense			828				644				28.6				2,333				1,938				20.4
Net interest income (FTE)			6,757				6,167				9.6				19,466				17,650				10.3
Noninterest income			5,015				3,952				26.9				12,761				11,991				6.4
Noninterest expense			7,930				6,626				19.7				22,232				20,088				10.7
Net income			2,547				2,264				12.5				6,467				5,751				12.5
Earnings per diluted share			0.40				0.35				14.3				1.01				0.89				14.6
Net interest margin (FTE)			3.82	%			3.87	%			(1.3	)			3.72	%			3.78	%			(1.6	)
Return on average assets			1.28	%			1.26	%			1.6				1.10	%			1.07	%			2.8
Return on average equity			11.90	%			11.42	%			4.2				10.27	%			9.84	%			4.4

 

 

“Our third quarter performance was highlighted by our strongest mortgage origination quarter ever, and included double-digit loan and deposit growth and the resolution of a $3.5 million non-performing credit,” said Mark Klein, Chairman, President, and CEO of SB Financial. “Additionally this quarter, our $0.40 per share earnings represented a meaningful contribution from each of our six primary business lines. This strong performance further highlights our successful execution of our key strategic initiatives to drive growth for our company and value for our shareholders.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income (FTE) and noninterest income, was up 16.3 percent from the third quarter of 2015, and up 8.8 percent from the linked quarter.

 

	●	Net interest income (FTE) was up 9.6 percent from the year-ago quarter, and up 3.8 percent from the linked quarter.

	●	Net interest margin (FTE) was down 5 basis points from the year-ago quarter, but up 7 basis points from the linked quarter.

	●	Noninterest income was up 26.9 percent from the year-ago quarter, and up 16.4 percent from the linked quarter.

●

Total revenue (FTE) for the first nine months of 2016 was $32.2 million, compared to $29.6 million for the first nine months of 2015, which is an 8.7 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the third quarter of 2016 were $117.2 million, up $30.2 million, or 34.8 percent, from the year-ago quarter. Total sales of originated loans were $101.1 million, up $31.1 million, or 44.3 percent from the year-ago quarter.

 

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.7 million for the third quarter of 2016, compared to $1.8 million for the year-ago quarter, or a 51.6 percent increase. The mortgage servicing valuation adjustment for the third-quarter 2016 was a positive $0.1 million, compared to a negative adjustment for the third quarter of 2015 of $0.1 million. The aggregate servicing valuation impairment ended the quarter at $1.5 million. The mortgage servicing portfolio at September 30, 2016, was $868.8 million, up $117.8 million, or 15.7 percent, from $751.0 million at September 30, 2015.

 

Mr. Klein noted, “The entire mortgage production team turned in the best quarter in our history. We have again maintained a high level of new money production in the quarter, at 88 percent of total volume. Construction volume has been a key factor in our success this year, and we continue to see momentum in this area.”

 

Mortgage Banking ($000’s)
		Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015
Mortgage originations		$	117,209			$	110,210			$	71,941			$	67,149			$	86,965
Mortgage sales			101,147				95,150				59,383				56,302				70,081
Mortgage servicing portfolio			868,783				831,781				792,666				772,533				750,958
Mortgage servicing rights			6,887				6,494				6,608				7,152				6,798
Mortgage servicing revenue:
Loan servicing fees			531				505				491				476				459
OMSR amortization			(397	)			(309	)			(170	)			(157	)			(223	)
Net administrative fees			134				196				321				319				236
OMSR valuation adjustment			71				(469	)			(767	)			64				(138	)
Net loan servicing fees			205				(273	)			(446	)			383				98
Gain on sale of mortgages			2,503				2,284				1,383				1,372				1,687
Mortgage banking revenue, net		$	2,708			$	2,011			$	937			$	1,755			$	1,785

 

 

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 from sales of small business loans (SBA). Wealth management assets under our management stood at $375.8 million as of September 30, 2016. For the third quarter of 2016, fee income as a percentage of total revenue was 42.9 percent. The servicing rights recapture positively impacted the quarter by $0.1 million.

 

For the third quarter of 2016, noninterest expense (NIE) of $7.9 million, was up $1.3 million, or 19.7 percent, compared to the same quarter last year. Total staffing levels were up 7.2 percent, due to our new branch locations and increased support in our compliance and mortgage divisions. We also had higher commission expenses related to our mortgage loan volume. Compared to the linked quarter, NIE was up $0.5 million, or 7.1 percent.

 

Mr. Klein stated, “Once again, total fee income was above 40 percent of total revenue. Mortgage banking delivered record levels of both origination and sales during the quarter. We continued to diversify our fee income, with both SBA lending and wealth management turning in strong quarters.”

 

Fee Income / Noninterest Expense ($000’s)
		Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015
Fee Income		$	5,015			$	4,307			$	3,439			$	3,716			$	3,952
Fee Income / Total Revenue			42.9	%			40.1	%			36.0	%			38.3	%			39.4	%
Fee Income / Average Assets			2.5	%			2.2	%			1.8	%			2.0	%			2.2	%
Noninterest Expense		$	7,930			$	7,407			$	6,895			$	6,839			$	6,626
Efficiency Ratio			67.8	%			69.0	%			72.2	%			70.2	%			65.6	%
NIE / Average Assets			4.0	%			3.8	%			3.6	%			3.7	%			3.7	%
Net Noninterest Expense			(1.5	)			(1.6	)			(1.8	)			(1.7	)			(1.5	)

 

Balance Sheet

 

Total assets as of September 30, 2016, were $801.8 million, up $82.6 million, or 11.5 percent, from a year ago. Total equity as of September 30, 2016, was $86.3 million, up 7.4 percent, from a year ago, and was at 10.8 percent of total assets.

 

Total loans held for investment were $619.4 million at September 30, 2016, up $78.5 million, or 14.5 percent, from September 30, 2015. Commercial real estate loans were up $37.2 million, or 16.1 percent, and accounted for the majority of the total loan growth., Commercial and Residential real estate loans also rose $17.5 million and $12.9 million, or 20.9 percent and 10.2 percent, respectively.

 

 

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $96.4 million represented 12.0 percent of assets at September 30, 2016, and was down 2.8 percent from the year-ago period. Deposit balances of $662.1 million at September 30, 2016, increased by $88.6 million, or 15.4 percent, since September 30, 2015. Growth from the prior year included $23.4 million in checking and $65.2 million in savings and time deposit balances.

 

Mr. Klein said, “We continued to add high-quality loan volume this quarter, with growth from the linked quarter of $15 million and from the prior year we are up $79 million. Our net interest margin came in at 3.82 percent, reflecting that growth as well as the recapture of interest from the large, non-performing credit that paid off during the quarter.”

 

Loan Portfolio ($000’s)		Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Variance YOY
Commercial		$	101,245			$	100,651			$	92,086			$	86,586			$	83,741			$	17,504
% of Total			16.4	%			16.6	%			16.0	%			15.5	%			15.5	%			20.9	%
Commercial RE			268,408				261,923				256,461				242,208				231,249				37,159
% of Total			43.3	%			43.3	%			44.4	%			43.4	%			42.8	%			16.1	%
Agriculture			54,609				52,375				42,467				43,835				46,102				8,507
% of Total			8.8	%			8.7	%			7.4	%			7.9	%			8.5	%			18.5	%
Residential RE			139,757				135,506				132,627				130,806				126,840				12,917
% of Total			22.6	%			22.4	%			23.0	%			23.5	%			23.5	%			10.2	%
Consumer & Other			55,333				54,321				53,493				54,224				52,957				2,376
% of Total			8.9	%			9.0	%			9.3	%			9.7	%			9.7	%			4.5	%
Total Loans		$	619,352			$	604,776			$	577,134			$	557,659			$	540,889			$	78,463
Total Growth Percentage																							14.5	%

 

Deposit Bal. ($000’s)			Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Variance YOY
Non-Int DDA		$	116,976			$	110,899			$	112,209			$	113,113			$	102,460			$	14,516
% of Total			17.7	%			17.1	%			17.6	%			19.3	%			17.9	%			14.2	%
Interest DDA			135,729				129,658				138,235				126,443				126,816				8,913
% of Total			20.5	%			20.0	%			21.7	%			21.6	%			22.1	%			7.0	%
Savings			89,265				84,975				86,038				83,447				77,809				11,456
% of Total			13.5	%			13.1	%			13.5	%			14.2	%			13.6	%			14.7	%
Money Market			126,501				134,365				120,672				104,412				107,538				18,963
% of Total			19.1	%			20.7	%			18.9	%			17.8	%			18.7	%			17.6	%
Certificates			193,673				188,403				180,874				159,038				158,945				34,728
% of Total			29.3	%			29.1	%			28.4	%			27.1	%			27.7	%			21.9	%
Total Deposits		$	662,144			$	648,300			$	638,028			$	586,453			$	573,568			$	88,576
Total Growth Percentage																							15.4	%

 

Asset Quality

 

SB Financial returned to high-performing peer asset quality during the quarter, reporting non-performing assets of $4.6 million as of September 30, 2016, down $4.0 million, or 46.5 percent, from the year-ago quarter, and down $3.7 million, or 44.7 percent, from the linked quarter. The decrease from the prior year was the result of an existing delinquent commercial real estate credit that moved through foreclosure with full principal payoff. SB Financial’s 0.6 percent of nonperforming assets to total assets is above the top quartile in its 65-bank peer group. The coverage of problem loans by the loan loss allowance was at 163.5 percent at September 30, 2016, up from the 85.1 percent at September 30, 2015.

 

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Category			Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Variance YOY
Commercial & Agriculture		$	151			$	158			$	164			$	196			$	453			$	(302	)
% of Total Com./Ag. loans			0.10	%			0.12	%			0.12	%			0.15	%			0.35	%			(66.7	%)
Commercial RE			1,393				5,309				5,218				5,670				5,393				(4,000	)
% of Total CRE loans			0.52	%			2.02	%			2.03	%			2.34	%			2.33	%			(74.2	%)
Residential RE			1,152				1,088				1,156				749				795				357
% of Total Res. RE loans			0.82	%			0.80	%			0.87	%			0.57	%			0.63	%			44.9	%
Consumer & Other			193				138				46				32				101				92
% of Total Con./Oth. loans			0.35	%			0.25	%			0.09	%			0.06	%			0.20	%			91.1	%
Total Nonaccruing Loans			2,889				6,693				6,584				6,646				6,742				(3,853	)
% of Total loans			0.47	%			1.11	%			1.14	%			1.19	%			1.25	%			(57.2	%)
Accruing Restructured Loans			1,588				1,381				1,482				1,500				1,576
Total Nonaccruing & Restructured Loans		$	4,477			$	8,074			$	8,066			$	8,146			$	8,318			$	(3,841	)
% of Total loans			0.72	%			1.34	%			1.40	%			1.46	%			1.54	%			(46.2	%)
Foreclosed Assets			73				157				406				286				188
Total Nonperforming Assets		$	4,550			$	8,231			$	8,472			$	8,432			$	8,506			$	(3,956	)
% of Total assets			0.57	%			1.04	%			1.09	%			1.15	%			1.18	%			(46.5	%)

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on October 21, 2016, at 11:00 a.m. EDT. 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 operating subsidiaries: State Bank and DCM. 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 a total of 19 banking centers; 18 in nine Ohio counties and one center in Fort Wayne, Indiana, and 22 full-service ATMs. The Company has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. DCM 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 2016, SB Financial was ranked #160 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”).

 

 

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 including certain non-GAAP financial measures will provide 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)		2016				2016				2016				2015				2015
ASSETS
Cash and due from banks		$	25,167				29,945				35,529				20,459				18,372
Securities available for sale, at fair value			92,689				92,472				97,990				89,789				95,482
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			96,437				96,220				101,738				93,537				99,230
Loans held for sale			5,865				8,441				6,890				7,516				8,517
Loans, net of unearned income			619,352				604,776				577,134				557,659				540,889
Allowance for loan losses			(7,320	)			(7,450	)			(7,205	)			(6,990	)			(7,076	)
Net loans			612,032				597,326				569,929				550,669				533,813
Premises, equipment and software, net			18,673				18,806				18,994				19,010				17,619
Cash surrender value of life insurance			13,653				13,581				13,509				13,437				13,364
Goodwill & other intangibles			16,426				16,429				16,432				16,435				16,473
Foreclosed assets held for sale, net			73				157				406				286				188
Mortgage servicing rights			6,887				6,494				6,608				7,152				6,798
Accrued interest receivable			1,641				1,397				1,489				1,260				1,817
Other assets			4,946				4,367				3,296				3,310				3,046
Total assets		$	801,800				793,163				774,820				733,071				719,237
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	116,976				110,899				112,209				113,113				102,460
Interest bearing demand			135,729				129,658				138,235				126,443				126,816
Savings			89,265				84,975				86,038				83,447				77,809
Money market			126,501				134,365				120,672				104,412				107,538
Time deposits			193,673				188,403				180,874				159,038				158,945
Total deposits			662,144				648,300				638,028				586,453				573,568
Advances from Federal Home Loan Bank			23,000				23,000				21,000				35,000				30,000
Repurchase agreements			11,363				17,797				14,524				12,406				16,911
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			427				384				343				264				341
Other liabilities			8,293				8,422				7,564				7,397				7,782
Total liabilities			715,537				708,213				691,769				651,830				638,912
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			15,370				15,367				15,365				15,438				15,444
Retained earnings			44,933				42,925				41,199				40,059				38,705
Accumulated other comprehensive income			1,237				1,552				1,296				650				1,157
Treasury stock			(1,829	)			(1,446	)			(1,361	)			(1,458	)			(1,533	)
Total equity			86,263				84,950				83,051				81,241				80,325
Total liabilities and equity		$	801,800				793,163				774,820				733,071				719,237

 

 

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
		2016				2016				2016				2015				2015				2016				2015
Interest income
Loans
Taxable		$	6,954				6,648				6,260				6,086				6,152				19,862				17,606
Nontaxable			22				24				9				10				10				55				25
Securities
Taxable			378				392				402				357				382				1,172				1,149
Nontaxable			145				149				156				169				173				450				525
Total interest income			7,499				7,213				6,827				6,622				6,717				21,539				19,305
Interest expense
Deposits			677				647				545				492				492				1,869				1,487
Repurchase Agreements & Other			5				4				5				3				5				14				14
Federal Home Loan Bank advances			83				77				106				95				94				266				280
Trust preferred securities			63				62				59				56				53				184				157
Total interest expense			828				790				715				646				644				2,333				1,938
Net interest income			6,671				6,423				6,112				5,976				6,073				19,206				17,367
Provision for loan losses			-				-				250				150				100				250				950
Net interest income after provision for loan losses			6,671				6,423				5,862				5,826				5,973				18,956				16,417
Noninterest income
Wealth Management Fees			695				643				633				645				636				1,971				1,961
Customer service fees			692				680				680				711				734				2,052				2,068
Gain on sale of mtg. loans & OMSR's			2,503				2,284				1,383				1,372				1,687				6,170				4,892
Mortgage loan servicing fees, net			205				(273	)			(446	)			383				98				(514	)			642
Gain on sale of non-mortgage loans			327				151				449				75				296				927				872
Data service fees			223				233				277				273				294				733				917
Net gain on sales of securities			59				92				111				-				-				262				-
Gain/(loss) on sale/disposal of assets			(31	)			186				22				38				-				177				(20	)
Other income			342				311				330				219				207				983				659
Total non-interest income			5,015				4,307				3,439				3,716				3,952				12,761				11,991
Noninterest expense
Salaries and employee benefits			4,672				4,314				3,779				3,855				3,650				12,765				11,062
Net occupancy expense			523				524				565				479				481				1,612				1,464
Equipment expense			649				639				595				566				568				1,883				1,657
Data processing fees			352				339				305				264				286				996				796
Professional fees			380				326				316				381				416				1,022				1,282
Marketing expense			123				199				171				157				146				493				437
Telephone and communication			101				102				99				103				96				302				284
Postage and delivery expense			154				162				197				168				198				513				633
State, local and other taxes			170				171				99				130				130				440				387
Employee expense			117				128				118				126				126				363				417
Intangible amortization expense			3				3				3				37				54				9				163
Other expenses			686				500				648				573				475				1,834				1,506
Total non-interest expense			7,930				7,407				6,895				6,839				6,626				22,232				20,088
Income before income tax expense			3,756				3,323				2,406				2,703				3,299				9,485				8,320
Income tax expense			1,209				1,058				751				835				1,035				3,018				2,569
Net income		$	2,547				2,265				1,655				1,868				2,264				6,467				5,751
Preferred Stock Dividends			244				244				244				244				244				731				712
Net income available to common shares			2,303				2,021				1,411				1,624				2,020				5,736				5,039
Common share data:
Basic earnings per common share		$	0.47				0.41				0.29				0.33				0.41				1.17				1.03
Diluted earnings per common share		$	0.40				0.35				0.26				0.29				0.35				1.01				0.89
Average shares outstanding ($ in thousands):
Basic:			4,874				4,893				4,896				4,890				4,884				4,888				4,882
Diluted:			6,376				6,390				6,401				6,396				6,390				6,384				6,422

 

 

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		2016				2016				2016				2015				2015						2016				2015
Net interest income		$	6,671				6,423				6,112				5,976				6,073						19,206				17,367
Tax-equivalent adjustment		$	86				89				85				92				94						260				283
Tax-equivalent net interest income		$	6,757				6,512				6,197				6,068				6,167						19,466				17,650
Provision for loan loss		$	-				-				250				150				100						250				950
Noninterest income		$	5,015				4,307				3,439				3,716				3,952						12,761				11,991
Total revenue, tax-equivalent		$	11,772				10,819				9,636				9,784				10,119						32,227				29,641
Noninterest expense		$	7,930				7,407				6,895				6,839				6,626						22,232				20,088
Pre-tax pre-provision income		$	3,756				3,323				2,656				2,853				3,399						9,735				9,270
Pretax income		$	3,756				3,323				2,406				2,703				3,299						9,485				8,320
Net income		$	2,547				2,265				1,655				1,868				2,264						6,466				5,751
Income available to common shareholders		$	2,303				2,021				1,411				1,624				2,020						5,735				5,039
PER SHARE INFORMATION:
Basic earnings per share		$	0.47				0.41				0.29				0.33				0.41						1.17				1.03
Diluted earnings per share		$	0.40				0.35				0.26				0.29				0.35						1.01				0.89
Common dividends		$	0.060				0.060				0.055				0.055				0.050						0.175				0.145
Book value per common share		$	13.66				13.39				13.07				12.81				12.68						13.66				12.68
Tangible book value per common share		$	11.49				11.15				10.74				10.39				10.21						11.49				10.21
Market price per common share		$	12.53				10.87				10.31				11.14				10.27						12.53				10.27
Market price per preferred share		$	13.50				11.83				11.19				12.65				13.00						13.50				13.00
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.28	%			1.15	%			0.87	%			1.02	%			1.26	%					1.10	%			1.07	%
Pre-tax pre-provision ROAA			1.89	%			1.69	%			1.40	%			1.56	%			1.89	%					1.66	%			1.73	%
Return on average equity			11.90	%			10.80	%			8.03	%			9.23	%			11.42	%					10.27	%			9.84	%
Return on average tangible equity			18.45	%			16.94	%			12.74	%			14.80	%			18.55	%					16.10	%			16.20	%
Efficiency ratio			67.83	%			69.00	%			72.16	%			70.18	%			65.56	%					69.52	%			67.87	%
Earning asset yield			4.29	%			4.20	%			4.18	%			4.17	%			4.27	%					4.22	%			4.20	%
Cost of interest bearing liabilities			0.56	%			0.55	%			0.51	%			0.49	%			0.49	%					0.54	%			0.49	%
Net interest margin			3.77	%			3.69	%			3.69	%			3.71	%			3.81	%					3.72	%			3.72	%
Tax equivalent effect			0.05	%			0.06	%			0.06	%			0.05	%			0.06	%					0.05	%			0.06	%
Net interest margin, tax equivalent			3.82	%			3.75	%			3.75	%			3.76	%			3.87	%					3.77	%			3.78	%
Non interest income/Average assets			2.52	%			2.20	%			1.81	%			2.03	%			2.20	%					2.18	%			2.23	%
Non interest expense/Average assets			3.98	%			3.78	%			3.62	%			3.74	%			3.69	%					3.80	%			3.74	%
Net noninterest expense/Average assets			1.46	%			1.58	%			1.82	%			1.71	%			1.49	%					1.62	%			1.51	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	136				2				94				241				58						232				711
Recoveries		$	6				247				59				5				29						312				66
Net charge-offs		$	130				(245	)			35				236				29						(80	)			645
Nonaccruing loans/ Total loans			0.47	%			1.11	%			1.14	%			1.19	%			1.25	%					0.47	%			1.25	%
Nonperforming loans/ Total loans			0.72	%			1.34	%			1.40	%			1.46	%			1.54	%					0.72	%			1.54	%
Nonperforming assets/ Loans & OREO			0.73	%			1.36	%			1.47	%			1.51	%			1.57	%					0.73	%			1.57	%
Nonperforming assets/ Total assets			0.57	%			1.04	%			1.09	%			1.15	%			1.18	%					0.57	%			1.18	%
Allowance for loan loss/ Nonperforming loans			163.50	%			92.27	%			89.33	%			85.81	%			85.07	%					163.50	%			85.07	%
Allowance for loan loss/ Total loans			1.18	%			1.23	%			1.25	%			1.25	%			1.31	%					1.18	%			1.31	%
Net loan charge-offs/ Average loans (ann.)			0.08	%			(0.16	%)			0.02	%			0.17	%			0.02	%					(0.02	%)			0.15	%
Loan loss provision/ Net charge-offs			0.00	%			0.00	%			714.29	%			63.56	%			344.83	%					(312.50	%)			147.29	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			93.54	%			93.29	%			90.46	%			95.09	%			94.30	%					93.54	%			94.30	%
Equity/ Assets			10.76	%			10.71	%			10.72	%			11.08	%			11.17	%					10.76	%			11.17	%
Tangible equity/ Tangible assets			7.11	%			7.02	%			6.94	%			7.09	%			7.10	%					7.11	%			7.10	%
Tangible equity adjusted for conversion			8.89	%			8.82	%			8.78	%			9.04	%			9.09	%					8.89	%			9.09	%
END OF PERIOD BALANCES
Total assets		$	801,800				793,163				774,820				733,071				719,237						801,800				719,237
Total loans		$	619,352				604,776				577,134				557,659				540,889						619,352				540,889
Deposits		$	662,144				648,300				638,028				586,453				573,568						662,144				573,568
Stockholders equity		$	86,263				84,950				83,051				81,241				80,325						86,263				80,325
Goodwill & intangibles		$	16,426				16,429				16,432				16,435				16,473						16,426				16,473
Preferred equity		$	13,983				13,983				13,983				13,983				13,983						13,983				13,983
Tangible equity		$	55,854				54,538				52,636				50,823				49,869						55,854				49,869
Mortgage servicing portfolio		$	868,783				831,781				792,666				772,533				750,958						868,783				750,958
Wealth/Brokerage assets under care		$	375,787				367,223				357,531				353,488				347,136						375,787				347,136
Total assets under care		$	2,046,370				1,992,167				1,925,017				1,859,092				1,817,331						2,046,370				1,817,331
Full-time equivalent employees			224				223				218				214				209						224				209
Period end basic shares outstanding			4,860				4,892				4,900				4,891				4,884						4,860				4,884
Period end outstanding (Series A Converted)			1,455				1,453				1,452				1,451				1,451						1,455				1,451
AVERAGE BALANCES
Total assets		$	796,027				784,353				761,143				731,198				718,591						780,583				715,670
Total earning assets		$	707,679				694,629				661,891				644,783				638,266						688,139				622,407
Total loans		$	614,731				596,724				568,925				549,877				538,646						593,538				525,459
Deposits		$	650,751				644,429				616,124				585,922				572,801						637,055				572,500
Stockholders equity		$	85,616				83,894				82,378				80,911				79,301						83,955				77,871
Intangibles		$	16,427				16,431				16,434				16,450				16,500						16,431				16,555
Preferred equity		$	13,983				13,983				13,983				13,983				13,983						13,983				13,983
Tangible equity		$	55,206				53,480				51,961				50,478				48,818						53,541				47,333
Average basic shares outstanding			4,874				4,893				4,896				4,890				4,884						4,888				4,882
Average diluted shares outstanding			6,376				6,390				6,401				6,396				6,390						6,384				6,422

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Nine Months Ended September 30, 2016 and 2015

 

($ in Thousands)		Three Months Ended Sep. 30, 2016												Three Months Ended Sep. 30, 2015
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	78,174				378				1.93	%		$	82,015				382				1.86	%
Nontaxable securities			14,774				220				5.95	%			17,605				262				5.96	%
Loans, net			614,731				6,987				4.55	%			538,646				6,167				4.58	%
Total earning assets			707,679				7,585				4.29	%			638,266				6,811				4.27	%
Cash and due from banks			32,760												27,300
Allowance for loan losses			(7,494	)											(7,023	)
Premises and equipment			18,921												17,173
Other assets			44,161												42,875
Total assets		$	796,027											$	718,591
Liabilities
Savings and interest bearing demand		$	348,944				141				0.16	%		$	311,337				91				0.12	%
Time deposits			188,768				536				1.14	%			160,519				401				1.00	%
Repurchase agreements & Other			17,046				5				0.12	%			17,573				5				0.11	%
Advances from Federal Home Loan Bank			23,000				83				1.44	%			30,043				94				1.25	%
Trust preferred securities			10,310				63				2.44	%			10,310				53				2.06	%
Total interest bearing liabilities			588,068				828				0.56	%			529,782				644				0.49	%
Non interest bearing demand			113,039				-								100,945				-
Total funding			701,107								0.47	%			630,727								0.41	%
Other liabilities			9,304												8,563
Total liabilities			710,411												639,290
Equity			85,616												79,301
Total liabilities and equity		$	796,027											$	718,591
Net interest income (tax equivalent basis)						$	6,757											$	6,167
Net interest income as a percent of average interest-earning assets											3.82	%											3.87	%

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Nine Months Ended September 30, 2016 and 2015 - (Continued)

 

		Nine Months Ended Sep. 30, 2016												Nine Months Ended Sep. 30, 2015
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	78,683				1,172				1.99	%		$	79,141				1,149				1.94	%
Nontaxable securities			15,918				682				5.71	%			17,807				795				5.95	%
Loans, net			593,538				19,945				4.48	%			525,459				17,644				4.48	%
Total earning assets			688,139				21,799				4.22	%			622,407				19,588				4.20	%
Cash and due from banks			36,905												41,123
Allowance for loan losses			(7,348	)											(6,938	)
Premises and equipment			19,172												15,899
Other assets			43,715												43,179
Total assets		$	780,583											$	715,670
Liabilities
Savings and interest bearing demand		$	343,761				381				0.15	%		$	310,542				251				0.11	%
Time deposits			180,609				1,488				1.10	%			163,076				1,236				1.01	%
Repurchase agreements & Other			16,213				14				0.12	%			16,160				14				0.12	%
Advances from Federal Home Loan Bank			23,379				266				1.52	%			30,029				280				1.24	%
Trust preferred securities			10,310				184				2.38	%			10,310				157				2.03	%
Total interest bearing liabilities			574,272				2,333				0.54	%			530,117				1,938				0.49	%
Non interest bearing demand			112,685								0.45	%			98,882								0.41	%
Total funding			686,957												628,999
Other liabilities			9,671												8,800
Total liabilities			696,628												637,799
Equity			83,955												77,871
Total liabilities and equity		$	780,583											$	715,670
Net interest income (tax equivalent basis)						$	19,466											$	17,650
Net interest income as a percent of average interest-earning assets											3.77	%											3.78	%

  

 

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