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 Strong First-Quarter 2017 Results

 

Year-over-year earnings per share growth of 19% and loan growth of 9%

 

DEFIANCE, Ohio, April 20, 2017 -- 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 first-quarter ended March 31, 2017.

 

First-quarter 2017 highlights over prior-year first quarter include:

 

	●	Net income of $2.0 million, an increase of 20.4 percent, or $0.3 million
	●	Return on average assets of 0.96 percent, up 10.3 percent, or 9 basis points
	●	Diluted earnings per share (EPS) of $0.31, an increase of 19.2 percent, or $0.05 per share
	●	Loan growth of $49.6 million, or 8.6 percent
	●	Deposit growth of $74.9 million, or 11.7 percent
	●	Mortgage origination volume of $56.7 million, a decrease of 21.2 percent, or $15.3 million; servicing portfolio of $917.4 million, up 15.7 percent, or $124.7 million

 

Highlights		Three Months Ended
($000’s except ratios and share data)		Mar. 2017				Mar. 2016				% Change
Operating revenue		$	10,308			$	9,551				7.9	%
Interest income			7,414				6,827				8.6
Interest expense			908				715				27.0
Net interest income			6,506				6,112				6.4
Noninterest income			3,802				3,439				10.6
Noninterest expense			7,382				6,895				7.1
Net income			1,993				1,655				20.4
Earnings per diluted share			0.31				0.26				19.2
Net interest margin (FTE)			3.59	%			3.75	%			(4.3	)
Return on average assets			0.96	%			0.87	%			10.3
Return on average equity			9.13	%			8.03	%			13.7

 

“SB Financial Group’s first-quarter diluted EPS was up 19 percent compared to the prior-year quarter, due to strong SBA loan sales offsetting a softer mortgage origination quarter,” said Mark A. Klein, Chairman, President and CEO of SB Financial. “We were encouraged to see asset quality metrics continue to improve, with non-performing assets ending the quarter at just 56 basis points.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 7.9 percent from the first quarter of 2016, and down 12.5 percent from the linked quarter.

 

	●	Net interest income was up 6.4 percent from the year-ago quarter, and down 2.1 percent from the linked quarter.
	●	Net interest margin (FTE) was down 14 basis points from the year-ago quarter, and down 10 basis points from the linked quarter. The year-over-year decline was due to lower loan volume, decreased mortgage loan fees and higher deposit funding costs.
	●	Noninterest income was up 10.6 percent from the year-ago quarter, and down 25.9 percent from the linked quarter.

 

Mortgage Loan Business

 

Mortgage loan originations for the first quarter of 2017 were $56.7 million, down $15.3 million, or 21.2 percent, from the year-ago quarter. Total sales of originated loans were $50.5 million, down $8.9 million, or 15.0 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 $1.6 million for the first quarter of 2017, compared to $0.9 million for the year-ago quarter, or a 74.5 percent increase. The mortgage servicing valuation adjustment for the first quarter 2017 was a positive $0.03 million, compared to a negative adjustment of $0.8 million for the first quarter of 2016. The aggregate servicing valuation impairment ended the quarter at $0.2 million. The mortgage servicing portfolio at March 31, 2017, was $917.4 million, up $124.7 million, or 15.7 percent, from $792.7 million at March 31, 2016.

 

Mr. Klein noted, “The rise in rates impacted our mortgage production as we saw volume decline 15 percent compared to the prior year. Refinance activity has slowed significantly, but our purchase volume hit a high level of 93 percent of total volume for the quarter.”

 

Mortgage Banking ($000’s)		Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016
Mortgage originations		$	56,667			$	83,469			$	117,209			$	110,210			$	71,941
Mortgage sales			50,473				81,689				101,147				95,150				59,383
Mortgage servicing portfolio			917,435				899,710				868,783				831,781				792,666
Mortgage servicing rights			8,927				8,422				6,887				6,494				6,608
Mortgage servicing revenue:
Loan servicing fees			566				553				531				505				491
OMSR amortization			(218	)			(462	)			(397	)			(309	)			(170	)
Net administrative fees			348				91				134				196				321
OMSR valuation adjustment			35				1,233				71				(469	)			(767	)
Net loan servicing fees			383				1,324				205				(273	)			(446	)
Gain on sale of mortgages			1,250				2,002				2,503				2,284				1,383
Mortgage banking revenue, net		$	1,633			$	3,326			$	2,708			$	2,011			$	937

 

Noninterest Income and Noninterest Expense

 

SB Financial’s noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees and from the sale of small business loans (SBA). SBA activity for the quarter was brisk, with total loan volume of $4.6 million and gains of $0.4 million. Wealth management assets under our care stood at $404.3 million as of March 31, 2017. For the first quarter of 2017, noninterest income as a percentage of total revenue was 36.9 percent. The recapture of servicing rights positively impacted the quarter by $0.03 million.

 

 

For the first quarter of 2017, noninterest expense (NIE) of $7.4 million, was up $0.5 million, or 7.1 percent, compared to the same quarter last year. The increase was due mainly to increases in staffing in our mortgage, wealth management and SBA divisions. Compared to the linked quarter, NIE was down $0.5 million, or 6.1 percent.

 

Mr. Klein stated, “Since we recommitted to SBA lending in 2014, we have achieved steady growth as our gains for the first quarter of 2017 were double the gains we experienced over the entire calendar year of 2014. Our pipeline continues to build in every region. The equity markets and expanded production resulted in total wealth assets under our care eclipsing the $400 million mark at March 31.”

 

Noninterest Income / Noninterest Expense ($000’s)		Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016
Noninterest Income (NII)		$	3,802			$	5,128			$	5,015			$	4,307			$	3,439
NII / Total Revenue			36.9	%			43.6	%			42.9	%			40.1	%			36.0	%
NII / Average Assets			1.8	%			2.5	%			2.5	%			2.2	%			1.8	%
Noninterest Expense (NIE)		$	7,382			$	7,859			$	7,930			$	7,407			$	6,895
Efficiency Ratio			71.6	%			66.7	%			67.8	%			69.0	%			72.2	%
NIE / Average Assets			3.6	%			3.9	%			4.0	%			3.8	%			3.6	%
Net Noninterest Expense			(1.8	)			(1.3	)			(1.5	)			(1.6	)			(1.8	)

 

Balance Sheet

 

Total assets as of March 31, 2017, were $846.8 million, up $72.0 million, or 9.3 percent, from a year ago. Total equity as of March 31, 2017, was $88.0 million, up 6.0 percent, from a year ago, and was at 10.4 percent of total assets.

 

Total loans held for investment were $626.7 million at March 31, 2017, up $49.6 million, or 8.6 percent, from March 31, 2016. Commercial real estate loans were up $26.5 million, or 10.3 percent, and accounted for the majority of the total loan growth, Commercial (C & I) also rose $10.3 million or 11.2 percent.

 

The investment portfolio of $111.7 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 13.2 percent of assets at March 31, 2017, and was up 9.8 percent from the year-ago period. Deposit balances of $712.9 million at March 31, 2017, increased by $74.9 million, or 11.7 percent, since March 31, 2016. Growth from the prior year included $7.6 million in checking and $67.3 million in savings and time deposit balances.

 

“Loan volume was lower than our expectations for the quarter, as we experienced some unanticipated pay-offs and delays in the timing of expected closings,” said Mr. Klein. However, our regional leaders are engaged in their markets and our pipelines are expanding. The quarter saw further improvement in our top-quartile asset quality metrics, as net charge-offs were just three basis points and our level of non-performing assets is now down to 56 basis points.”

 

Loan Portfolio ($000’s)		Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Variance YOY
Commercial		$	102,392			$	109,087			$	101,245			$	100,651			$	92,086			$	10,306
% of Total			16.4	%			16.9	%			16.4	%			16.6	%			16.0	%			11.2	%
Commercial RE			282,951				284,084				268,408				261,923				256,461				26,490
% of Total			45.1	%			44.1	%			43.3	%			43.3	%			44.4	%			10.3	%
Agriculture			47,580				52,475				54,609				52,375				42,467				5,113
% of Total			7.6	%			8.2	%			8.8	%			8.7	%			7.4	%			12.0	%
Residential RE			136,762				142,452				139,757				135,506				132,627				4,135
% of Total			21.8	%			22.1	%			22.6	%			22.4	%			23.0	%			3.1	%
Consumer & Other			57,037				56,335				55,333				54,321				53,493				3,545
% of Total			9.1	%			8.7	%			8.9	%			9.0	%			9.3	%			6.6	%
Total Loans		$	626,722			$	644,433			$	619,352			$	604,776			$	577,134			$	49,588
Total Growth Percentage																							8.6	%

 

 

Deposit Bal. ($000’s)			Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Variance YOY
Non-Int DDA		$	124,664			$	125,189			$	116,976			$	110,899			$	112,209			$	12,455
% of Total			17.5	%			18.6	%			17.7	%			17.1	%			17.6	%			11.1	%
Interest DDA			133,388				131,598				135,729				129,658				138,235				(4,847	)
% of Total			18.7	%			19.5	%			20.5	%			20.0	%			21.7	%			(3.5	)%
Savings			103,901				95,594				89,265				84,975				86,038				17,863
% of Total			14.6	%			14.2	%			13.5	%			13.1	%			13.5	%			20.8	%
Money Market			138,915				122,976				126,501				134,365				120,672				18,243
% of Total			19.5	%			18.3	%			19.1	%			20.7	%			18.9	%			15.1	%
Certificates			212,047				197,716				193,673				188,403				180,874				31,173
% of Total			29.7	%			29.4	%			29.3	%			29.1	%			28.4	%			17.2	%
Total Deposits		$	712,915			$	673,073			$	662,144			$	648,300			$	638,028			$	74,887
Total Growth Percentage																							11.7	%

 

Asset Quality

 

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $4.7 million as of March 31, 2017, down $3.8 million, or 44.3 percent, from the year-ago quarter. The decrease from the prior year resulted from the full principal payoff of an existing delinquent commercial real estate credit that moved through foreclosure without loss. SB Financial’s nonperforming assets to total assets of 0.56 percent is in the top quartile of its 65-bank peer group. The coverage of problem loans by the loan loss allowance was at 204.0 percent at March 31, 2017, up from the 89.3 percent at March 31, 2016.

 

 

Summary of Nonperforming Assets ($000’s)

 

Nonperforming Category			Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Variance YOY
Commercial & Agriculture		$	187			$	194			$	151			$	158			$	164			$	23
% of Total Com./Ag. loans			0.13	%			0.12	%			0.10	%			0.12	%			0.12	%			14.0	%
Commercial RE			939				1,194				1,393				5,309				5,218				(4,279	)
% of Total CRE loans			0.33	%			0.42	%			0.52	%			2.02	%			2.03	%			(82.0	)%
Residential RE			1,126				1,162				1,152				1,088				1,156				(30	)
% of Total Res. RE loans			0.82	%			0.82	%			0.82	%			0.80	%			0.87	%			(2.6	)%
Consumer & Other			130				187				193				138				46				84
% of Total Con./Oth. loans			0.23	%			0.33	%			0.35	%			0.25	%			0.09	%			N/M
Total Nonaccruing Loans			2,382				2,737				2,889				6,693				6,584				(4,202	)
% of Total loans			0.38	%			0.43	%			0.47	%			1.11	%			1.14	%			(63.8	)%
Accruing Restructured Loans			1,383				1,590				1,588				1,381				1,482
Total Nonaccruing & Restructured Loans		$	3,765			$	4,327			$	4,477			$	8,074			$	8,066			$	(4,301	)
% of Total loans			0.60	%			0.67	%			0.72	%			1.34	%			1.40	%			(53.3	)%
Foreclosed Assets			950				994				73				157				406
Total Nonperforming Assets		$	4,715			$	5,321			$	4,550			$	8,231			$	8,472			$	(3,757	)
% of Total assets			0.56	%			0.65	%			0.57	%			1.04	%			1.09	%			(44.3	)%

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on April 21, 2017, 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 Diverse Computer Marketers (DCM). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, 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 24 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 and statement production 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)

 

		March				December				September				June				March
($ in Thousands)		2017				2016				2016				2016				2016
ASSETS
Cash and due from banks		$	45,740				17,012				25,167				29,945				35,529
Securities available for sale, at fair value			107,937				90,129				92,689				92,472				97,990
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			111,685				93,877				96,437				96,220				101,738
Loans held for sale			5,104				4,434				5,865				8,441				6,890
Loans, net of unearned income			626,722				644,433				619,352				604,776				577,134
Allowance for loan losses			(7,679	)			(7,725	)			(7,320	)			(7,450	)			(7,205	)
Net loans			619,043				636,708				612,032				597,326				569,929
Premises, equipment and software, net			19,909				19,129				18,673				18,806				18,994
Cash surrender value of life insurance			13,791				13,725				13,653				13,581				13,509
Goodwill & other intangibles			16,419				16,422				16,426				16,429				16,432
Foreclosed assets held for sale, net			950				994				73				157				406
Mortgage servicing rights			8,727				8,422				6,887				6,494				6,608
Accrued interest receivable			1,462				1,512				1,641				1,397				1,489
Other assets			4,018				3,770				4,946				4,367				3,296
Total assets		$	846,848				816,005				801,800				793,163				774,820
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	124,664				125,189				116,976				110,899				112,209
Interest bearing demand			133,388				131,598				135,729				129,658				138,235
Savings deposits			103,901				95,594				89,265				84,975				86,038
Money market deposits			138,915				122,976				126,501				134,365				120,672
Time deposits			212,047				197,716				193,673				188,403				180,874
Total deposits			712,915				673,073				662,144				648,300				638,028
Advances from Federal Home Loan Bank			15,500				26,500				23,000				23,000				21,000
Repurchase agreements			11,796				10,532				11,363				17,797				14,524
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			450				408				427				384				343
Other liabilities			7,849				8,634				8,293				8,422				7,564
Total liabilities			758,820				729,457				715,537				708,213				691,769
Equity
Preferred shares			13,983				13,983				13,983				13,983				13,983
Common shares			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,224				15,362				15,370				15,367				15,365
Retained earnings			48,118				46,688				44,933				42,925				41,199
Accumulated other comprehensive income			136				51				1,237				1,552				1,296
Treasury shares			(2,002	)			(2,105	)			(1,829	)			(1,446	)			(1,361	)
Total equity			88,028				86,548				86,263				84,950				83,051
Total liabilities and equity		$	846,848				816,005				801,800				793,163				774,820

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands - except share data)		At and for the Three Months Ended
		March				December				September				June				March
Interest income		2017				2016				2016				2016				2016
Loans
Taxable		$	6,800				6,984				6,954				6,648				6,260
Nontaxable			20				20				22				24				9
Securities
Taxable			461				364				378				392				402
Nontaxable			133				144				145				149				156
Total interest income			7,414				7,512				7,499				7,213				6,827
Interest expense
Deposits			748				709				677				647				545
Repurchase Agreements & Other			4				2				5				4				5
Federal Home Loan Bank advances			86				86				83				77				106
Trust preferred securities			70				68				63				62				59
Total interest expense			908				865				828				790				715
Net interest income			6,506				6,647				6,671				6,423				6,112
Provision for loan losses			-				500				-				-				250
Net interest income after provision for loan losses			6,506				6,147				6,671				6,423				5,862
Noninterest income
Wealth Management Fees			667				657				695				643				633
Customer service fees			640				653				692				680				680
Gain on sale of mtg. loans & OMSR's			1,250				2,002				2,503				2,284				1,383
Mortgage loan servicing fees, net			383				1,324				205				(273	)			(446	)
Gain on sale of non-mortgage loans			430				52				327				151				449
Data service fees			193				184				223				233				277
Net gain on sales of securities			-				-				59				92				111
Gain/(loss) on sale/disposal of assets			-				-				(31	)			186				22
Other income			239				256				342				311				330
Total non-interest income			3,802				5,128				5,015				4,307				3,439
Noninterest expense
Salaries and employee benefits			4,386				4,656				4,672				4,314				3,779
Net occupancy expense			560				533				523				524				565
Equipment expense			641				735				649				639				595
Data processing fees			370				384				352				339				305
Professional fees			363				404				380				326				316
Marketing expense			195				154				123				199				171
Telephone and communication			116				111				101				102				99
Postage and delivery expense			174				148				154				162				197
State, local and other taxes			167				154				170				171				99
Employee expense			145				182				117				128				118
Other expenses			265				398				689				503				651
Total non-interest expense			7,382				7,859				7,930				7,407				6,895
Income before income tax expense			2,926				3,416				3,756				3,323				2,406
Income tax expense			933				1,098				1,209				1,058				751
Net income		$	1,993				2,317				2,547				2,265				1,655
Preferred Share Dividends			244				244				244				244				244
Net income available to common shares			1,749				2,073				2,303				2,021				1,411
Common share data:
Basic earnings per common share		$	0.36				0.43				0.47				0.41				0.29
Diluted earnings per common share		$	0.31				0.37				0.40				0.35				0.26
Average shares outstanding ($ in thousands):
Basic:			4,859				4,846				4,874				4,893				4,896
Diluted:			6,387				6,359				6,376				6,390				6,401

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended
		March				December				September				June				March
SUMMARY OF OPERATIONS		2017				2016				2016				2016				2016
Net interest income		$	6,506				6,647				6,671				6,423				6,112
Tax-equivalent adjustment		$	79				84				86				89				85
Tax-equivalent net interest income		$	6,585				6,731				6,757				6,512				6,197
Provision for loan loss		$	-				500				-				-				250
Noninterest income		$	3,802				5,128				5,015				4,307				3,439
Total operating revenue		$	10,308				11,775				11,686				10,730				9,551
Noninterest expense		$	7,382				7,859				7,930				7,407				6,895
Pre-tax pre-provision income		$	2,926				3,916				3,756				3,323				2,656
Pretax income		$	2,926				3,416				3,756				3,323				2,406
Net income		$	1,993				2,317				2,547				2,265				1,655
Income available to common shareholders		$	1,749				2,073				2,303				2,021				1,411
PER SHARE INFORMATION:
Basic earnings per share		$	0.36				0.43				0.47				0.41				0.29
Diluted earnings per share		$	0.31				0.37				0.40				0.35				0.26
Common dividends		$	0.065				0.065				0.060				0.060				0.055
Book value per common share		$	13.92				13.75				13.67				13.39				13.07
Tangible book value per common share		$	11.83				11.59				11.49				11.15				10.74
Market price per common share		$	16.72				16.05				12.53				10.87				10.31
Market price per preferred share		$	16.85				15.85				13.50				11.83				11.19
PERFORMANCE RATIOS:
Return on average assets (ROAA)			0.96	%			1.14	%			1.28	%			1.15	%			0.87	%
Pre-tax pre-provision ROAA			1.41	%			1.92	%			1.89	%			1.69	%			1.40	%
Return on average equity			9.13	%			10.72	%			11.90	%			10.80	%			8.03	%
Return on average tangible equity			14.00	%			16.54	%			18.45	%			16.94	%			12.74	%
Efficiency ratio			71.59	%			66.71	%			67.83	%			69.00	%			72.16	%
Earning asset yield			4.08	%			4.17	%			4.29	%			4.20	%			4.18	%
Cost of interest bearing liabilities			0.60	%			0.58	%			0.56	%			0.55	%			0.51	%
Net interest margin			3.55	%			3.64	%			3.77	%			3.69	%			3.69	%
Tax equivalent effect			0.04	%			0.05	%			0.05	%			0.06	%			0.06	%
Net interest margin, tax equivalent			3.59	%			3.69	%			3.82	%			3.75	%			3.75	%
Non interest income/Average assets			1.84	%			2.52	%			2.52	%			2.20	%			1.81	%
Non interest expense/Average assets			3.57	%			3.86	%			3.98	%			3.78	%			3.62	%
Net noninterest expense/Average assets			1.73	%			1.34	%			1.46	%			1.58	%			1.82	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	51				269				136				2				94
Recoveries		$	5				175				6				247				59
Net charge-offs		$	46				95				130				(245	)			35
Nonaccruing loans/ Total loans			0.38	%			0.42	%			0.47	%			1.11	%			1.14	%
Nonperforming loans/ Total loans			0.60	%			0.67	%			0.72	%			1.34	%			1.40	%
Nonperforming assets/ Loans & OREO			0.75	%			0.82	%			0.73	%			1.36	%			1.47	%
Nonperforming assets/ Total assets			0.56	%			0.65	%			0.57	%			1.04	%			1.09	%
Allowance for loan loss/ Nonperforming loans			203.96	%			178.53	%			163.50	%			92.27	%			89.33	%
Allowance for loan loss/ Total loans			1.23	%			1.20	%			1.18	%			1.23	%			1.25	%
Net loan charge-offs/ Average loans (ann.)			0.03	%			0.06	%			0.08	%			(0.16	)%			0.02	%
Loan loss provision/ Net charge-offs			0.00	%			526.32	%			0.00	%			0.00	%			714.29	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			87.91	%			95.74	%			93.54	%			93.29	%			90.46	%
Equity/ Assets			10.39	%			10.61	%			10.76	%			10.71	%			10.72	%
Tangible equity/ Tangible assets			6.94	%			7.02	%			7.11	%			7.02	%			6.94	%
Tangible equity adjusted for conversion			8.62	%			8.77	%			8.89	%			8.82	%			8.78	%
END OF PERIOD BALANCES
Total assets		$	846,848				816,005				801,800				793,163				774,820
Total loans		$	626,722				644,433				619,352				604,776				577,134
Deposits		$	712,915				673,073				662,144				648,300				638,028
Stockholders equity		$	88,028				86,548				86,263				84,950				83,051
Goodwill & intangibles		$	16,419				16,422				16,426				16,429				16,432
Preferred equity		$	13,983				13,983				13,983				13,983				13,983
Tangible equity		$	57,626				56,143				55,854				54,538				52,636
Mortgage servicing portfolio		$	917,435				899,710				868,783				831,781				792,666
Wealth/Brokerage assets under care		$	404,290				378,131				375,787				367,223				357,531
Total assets under care		$	2,168,573				2,093,846				2,046,370				1,992,167				1,925,017
Full-time equivalent employees			231				227				224				223				218
Period end basic shares outstanding			4,873				4,844				4,860				4,892				4,900
Period end outstanding (Series A Converted)			1,452				1,452				1,452				1,452				1,452
AVERAGE BALANCES
Total assets		$	827,514				814,423				796,027				784,353				761,143
Total earning assets		$	734,378				729,525				707,679				694,629				661,891
Total loans		$	637,490				634,664				614,731				596,724				568,925
Deposits		$	683,639				672,226				650,751				644,429				616,124
Stockholders equity		$	87,344				86,433				85,616				83,894				82,378
Intangibles		$	16,421				16,424				16,427				16,431				16,434
Preferred equity		$	13,983				13,983				13,983				13,983				13,983
Tangible equity		$	56,940				56,026				55,206				53,480				51,961
Average basic shares outstanding			4,859				4,846				4,874				4,893				4,896
Average diluted shares outstanding			6,387				6,359				6,376				6,390				6,401

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended March 31, 2017 and 2016

 

($ in Thousands)		Three Months Ended Mar. 31, 2017												Three Months Ended Mar. 31, 2016
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	82,727				461				2.23	%		$	76,617				402				2.10	%
Nontaxable securities			14,161				202				5.69	%			16,349				236				5.77	%
Loans, net			637,490				6,830				4.29	%			568,925				6,274				4.41	%
Total earning assets			734,378				7,493				4.08	%			661,891				6,912				4.18	%
Cash and due from banks			35,827												43,297
Allowance for loan losses			(7,800	)											(7,120	)
Premises and equipment			20,594												19,407
Other assets			44,515												43,668
Total assets		$	827,514											$	761,143
Liabilities
Savings and interest bearing demand		$	358,542				172				0.19	%		$	336,864				113				0.13	%
Time deposits			203,113				576				1.13	%			167,296				432				1.03	%
Repurchase agreements & Other			13,801				4				0.12	%			16,519				5				0.12	%
Advances from Federal Home Loan Bank			22,972				86				1.50	%			27,049				106				1.57	%
Trust preferred securities			10,310				70				2.72	%			10,310				59				2.29	%
Total interest bearing liabilities			608,738				908				0.60	%			558,038				715				0.51	%
Non interest bearing demand			121,984				-								111,964
Total funding			730,722								0.50	%			670,002								0.43	%
Other liabilities			9,448												8,763
Total liabilities			740,170												678,765
Equity			87,344												82,378
Total liabilities and equity		$	827,514											$	761,143
Net interest income (tax equivalent basis)						$	6,585											$	6,197
Net interest income as a percent of average interest-earning assets											3.59	%											3.75	%

 

 

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