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 Second-Quarter and Six-Month 2017 Results

Year-to-date earnings per share growth of 11.5% and loan growth of 8%

 

DEFIANCE, Ohio, July 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 second-quarter and six-months ended June 30, 2017.

 

Second-quarter 2017 highlights over prior-year second quarter include:

	●	Net income of $2.3 million, an increase of 2.3 percent, or $0.1 million
	●	Return on average assets of 1.09 percent
	●	Diluted earnings per share (EPS) of $0.37, an increase of 5.7 percent, or $0.02 per share
	●	Mortgage origination volume of $97.8 million, a decrease of 11.3 percent, or $12.4 million from $110.2 million

 

Six-months ended June 30, 2017 highlights over prior-year six months include:

	●	Net income of $4.3 million, an increase of 9.9 percent, or $0.4 million
	●	Return on average assets of 1.03 percent
	●	Diluted earnings per share (EPS) of $0.68, an increase of 11.5 percent, or $0.07 per share

 

Trailing twelve months (TTM) ended June 30, 2017 results compared to same period prior year:

	●	Loan growth of $46.8 million, or 7.7 percent vs. $82.4 million or 15.8 percent
	●	Deposit growth of $59.0 million, or 9.1 percent vs. $85.4 million or 15.2 percent
	●	Servicing portfolio of $952.4 million, up 14.5 percent, or $120.6 million
	●	Diluted earnings per share (EPS) of $1.45, an increase of 16.0 percent, or $0.20 per share

  

Highlights		Three Months Ended												Six Months Ended
($000’s except ratios and share data)		Jun. 2017				Jun. 2016				% Change				Jun. 2017				Jun. 2016				% Change
Operating revenue		$	11,425			$	10,730				6.5	%		$	21,733			$	20,281				7.2	%
Interest income			7,966				7,213				10.4				15,380				14,040				9.5
Interest expense			1,003				790				27.0				1,911				1,505				27.0
Net interest income			6,963				6,423				8.4				13,469				12,535				7.5
Noninterest income			4,462				4,307				3.6				8,264				7,746				6.7
Noninterest expense			7,806				7,407				5.4				15,188				14,302				6.2
Net income			2,317				2,265				2.3				4,310				3,920				9.9
Earnings per diluted share			0.37				0.35				5.7				0.68				0.61				11.5
Net interest margin (FTE)			3.73	%			3.75	%			(0.5	)			3.66	%			3.75	%			(2.4	)
Return on assets			1.09	%			1.15	%			(5.2	)			1.03	%			1.01	%			2.0
Return on equity			10.45	%			10.80	%			(3.2	)			9.80	%			9.43	%			3.9

 

“Lower mortgage originations impacted our quarterly performance, although we were pleased to show positive earnings growth from both the prior-year and linked quarters,” said Mark A. Klein, Chairman, President and CEO of SB Financial. “For the first half of this year; double digit earnings growth, strong loan and deposit volume and improving asset quality are the headlines.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 6.5 percent from the second quarter of 2016, and up 10.8 percent from the linked quarter.

 

	●	Net interest income was up 8.4 percent from the year-ago quarter, and up 7.0 percent from the linked quarter.
	●	Net interest margin (FTE) was down 2 basis points from the year-ago quarter, but up 14 basis points from the linked quarter.
	●	Noninterest income was up 3.6 percent from the year-ago quarter, and up 17.4 percent from the linked quarter.
	●	Total revenue for the first six months of 2017 was $21.7 million compared to $20.3 million for the first six months of 2016, which is a 7.2 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the second quarter of 2017 were $97.8 million, down $12.4 million, or 11.3 percent, from the year-ago quarter. Total sales of originated loans were $80.0 million, down $15.1 million, or 15.9 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 $2.3 million for the second quarter of 2017, compared to $2.0 million for the year-ago quarter, or a 14.6 percent increase. The mortgage servicing valuation adjustment for the second quarter 2017 was a negative $0.04 million, compared to a negative adjustment of $0.5 million for the second quarter of 2016. The aggregate servicing valuation impairment ended the quarter at $0.2 million. The mortgage-servicing portfolio at June 30, 2017, was $952.4 million, up $120.6 million, or 14.5 percent, from $831.8 million at June 30, 2016.

 

Mr. Klein noted, “Mortgage production improved this quarter, up $41 million from the linked quarter. We continue to see the shift away from refinance activity as our purchase volume was over 95 percent in the quarter. Despite an 11 percent decrease in volume from the prior year, our revenue, adjusting for impairment was only down 5.5 percent due to better pricing and operational efficiencies.”

 

Mortgage Banking ($000’s)
		Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016
Mortgage originations		$	97,804			$	56,667			$	83,469			$	117,209			$	110,210
Mortgage sales			80,038				50,473				81,689				101,147				95,150
Mortgage servicing portfolio			952,364				917,435				899,710				868,783				831,781
Mortgage servicing rights			9,217				8,927				8,422				6,887				6,494
Mortgage servicing revenue:
Loan servicing fees			583				566				553				531				505
OMSR amortization			(303	)			(218	)			(462	)			(397	)			(309	)
Net administrative fees			280				348				91				134				196
OMSR valuation adjustment			(39	)			35				1,233				71				(469	)
Net loan servicing fees			241				383				1,324				205				(273	)
Gain on sale of mortgages			2,063				1,250				2,002				2,503				2,284
Mortgage banking revenue, net		$	2,304			$	1,633			$	3,326			$	2,708			$	2,011

 

 

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 the sale of small business loans (SBA). SBA activity for the quarter was strong, with total loan volume of $4.2 million and gains of $0.4 million. Wealth management assets under the Company’s care stood at $407.3 million as of June 30, 2017. Noninterest income as a percentage of total revenue was 39.1 percent.

 

For the second quarter of 2017, noninterest expense (NIE) of $7.8 million, was up $0.4 million, or 5.4 percent, compared to the same quarter last year. The increase was due mainly to staffing growth in the mortgage, wealth management and SBA divisions. Compared to the linked quarter, NIE was up $0.4 million, or 5.7 percent.

 

Mr. Klein stated, “SBA volume was above $4 million again this quarter and we are nearing $800 thousand in loan sale gains for the year, with an average sale price of nearly 12 points. On the expense side, we continue to commit more resources to our sales and operational teams as we take market share, however the key metric of operating leverage has remained positive.”

 

Noninterest Income / Noninterest Expense ($000’s)
		Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016
Noninterest Income (NII)		$	4,462			$	3,802			$	5,128			$	5,015			$	4,307
NII / Total Revenue			39.1	%			36.9	%			43.6	%			42.9	%			40.1	%
NII / Average Assets			2.1	%			1.8	%			2.5	%			2.5	%			2.2	%
Noninterest Expense (NIE)		$	7,806			$	7,382			$	7,859			$	7,930			$	7,407
Efficiency Ratio			68.3	%			71.6	%			66.7	%			67.8	%			69.0	%
NIE / Average Assets			3.7	%			3.6	%			3.9	%			4.0	%			3.8	%
Net Noninterest Expense			(1.6	)			(1.7	)			(1.3	)			(1.5	)			(1.6	)

 

Balance Sheet

 

Total assets as of June 30, 2017, were $847.7 million, up $54.5 million, or 6.9 percent, from a year ago. Total equity as of June 30, 2017, was $89.0 million, up 4.8 percent, from a year ago, and was at 10.5 percent of total assets.

 

Total loans held for investment were $651.6 million at June 30, 2017, up $46.8 million, or 7.7 percent, from June 30, 2016. Commercial real estate loans were up $34.2 million, or 13.1 percent, and accounted for the majority of the total loan growth. Commercial (C&I) also rose $6.7 million, or 6.6 percent, from the prior period.

 

The investment portfolio of $107.1 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 12.6 percent of assets at June 30, 2017, and was up 11.3 percent from the year-ago period. Deposit balances of $707.3 million at June 30, 2017, increased by $59.0 million, or 9.1 percent, since June 30, 2016. Growth from the prior year included $11.1 million in checking and $47.9 million in savings and time deposit balances.

 

 

“Loan volume returned to a more anticipated level in the quarter at $24.9 million or an annualized growth rate of 16 percent,” said Mr. Klein. The loan pipeline remains strong throughout our regional markets and we continue to fund our growth with retail deposits.”

 

Loan Portfolio ($000’s)		Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Variance YOY
Commercial		$	107,319			$	102,392			$	109,087			$	101,245			$	100,651			$	6,668
% of Total			16.5	%			16.4	%			16.9	%			16.4	%			16.6	%			6.6	%
Commercial RE			296,116				282,951				284,084				268,408				261,923				34,193
% of Total			45.4	%			45.1	%			44.1	%			43.3	%			43.3	%			13.1	%
Agriculture			52,107				47,580				52,475				54,609				52,375				(268	)
% of Total			8.0	%			7.6	%			8.2	%			8.8	%			8.7	%			(0.5	%)
Residential RE			137,214				136,762				142,452				139,757				135,506				1,708
% of Total			21.1	%			21.8	%			22.1	%			22.6	%			22.4	%			1.3	%
Consumer & Other			58,833				57,037				56,335				55,333				54,321				4,512
% of Total			9.0	%			9.1	%			8.7	%			8.9	%			9.0	%			8.3	%
Total Loans		$	651,589			$	626,722			$	644,433			$	619,352			$	604,776			$	46,813
Total Growth Percentage																							7.7	%

 

Deposit Bal. ($000’s)			Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Variance YOY
Non-Int DDA		$	124,213			$	124,664			$	125,189			$	116,976			$	110,899			$	13,314
% of Total			17.6	%			17.5	%			18.6	%			17.7	%			17.1	%			12.0	%
Interest DDA			127,409				133,388				131,598				135,729				129,658				(2,249	)
% of Total			18.0	%			18.7	%			19.5	%			20.5	%			20.0	%			(1.7	%)
Savings			104,720				103,901				95,594				89,265				84,975				19,745
% of Total			14.8	%			14.6	%			14.2	%			13.5	%			13.1	%			23.2	%
Money Market			130,987				138,915				122,976				126,501				134,365				(3,378	)
% of Total			18.5	%			19.5	%			18.3	%			19.1	%			20.7	%			(2.5	%)
Certificates			220,004				212,047				197,716				193,673				188,403				31,601
% of Total			31.1	%			29.7	%			29.4	%			29.3	%			29.1	%			16.8	%
Total Deposits		$	707,333			$	712,915			$	673,073			$	662,144			$	648,300			$	59,033
Total Growth Percentage																							9.1	%

 

 

Asset Quality

 

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $3.9 million as of June 30, 2017, down $4.3 million, or 52.5 percent, from the year-ago quarter. The decrease from the prior year resulted in the full principal payoff of two existing delinquent commercial real estate credits. SB Financial’s nonperforming assets to total assets ratio of 0.46 percent is down from the 1.04 percent at June 30, 2016. The coverage of problem loans by the loan loss allowance was at 205.1 percent at June 30, 2017, up from the 92.3 percent at June 30, 2016.

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Category		Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Jun. 2016				Variance YOY
Commercial & Agriculture		$	132			$	187			$	194			$	151			$	158			$	(26	)
% of Total Com./Ag. loans			0.08	%			0.13	%			0.12	%			0.10	%			0.12	%			(16.5	%)
Commercial RE			1,049				939				1,194				1,393				5,309				(4,260	)
% of Total CRE loans			0.35	%			0.33	%			0.42	%			0.52	%			2.02	%			(80.2	%)
Residential RE			1,115				1,126				1,162				1,152				1,088				27
% of Total Res. RE loans			0.81	%			0.82	%			0.82	%			0.82	%			0.80	%			2.5	%
Consumer & Other			154				130				187				193				138				16
% of Total Con./Oth. loans			0.26	%			0.23	%			0.33	%			0.35	%			0.25	%			11.6	%
Total Nonaccruing Loans			2,450				2,382				2,737				2,889				6,693				(4,243	)
% of Total loans			0.38	%			0.38	%			0.43	%			0.47	%			1.11	%			(63.4	%)
Accruing Restructured Loans			1,366				1,383				1,590				1,588				1,381
Total Nonaccruing & Restructured Loans		$	3,816			$	3,765			$	4,327			$	4,477			$	8,074			$	(4,258	)
% of Total loans			0.59	%			0.60	%			0.67	%			0.72	%			1.34	%			(52.7	%)
Foreclosed Assets			94				950				994				73				157
Total Nonperforming Assets		$	3,910			$	4,715			$	5,321			$	4,550			$	8,231			$	(4,321	)
% of Total assets			0.46	%			0.56	%			0.65	%			0.57	%			1.04	%			(52.5	%)

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on July 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 2017, SB Financial was ranked #145 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)

 

		June				March				December				September				June
($ in Thousands)		2017				2017				2016				2016				2016
ASSETS
Cash and due from banks		$	21,385				45,740				17,012				25,167				29,945
Securities available for sale, at fair value			103,347				107,937				90,129				92,689				92,472
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			107,095				111,685				93,877				96,437				96,220
Loans held for sale			9,437				5,104				4,434				5,865				8,441
Loans, net of unearned income			651,589				626,722				644,433				619,352				604,776
Allowance for loan losses			(7,825	)			(7,679	)			(7,725	)			(7,320	)			(7,450	)
Net loans			643,764				619,043				636,708				612,032				597,326
Premises, equipment and software, net			20,740				19,909				19,129				18,673				18,806
Cash surrender value of life insurance			13,859				13,791				13,725				13,653				13,581
Goodwill & other intangibles			16,417				16,419				16,422				16,426				16,429
Foreclosed assets held for sale, net			94				950				994				73				157
Mortgage servicing rights			9,217				8,727				8,422				6,887				6,494
Accrued interest receivable			1,411				1,462				1,512				1,641				1,397
Other assets			4,249				4,018				3,770				4,946				4,367
Total assets		$	847,668				846,848				816,005				801,800				793,163
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	124,213				124,664				125,189				116,976				110,899
Interest bearing demand			127,409				133,388				131,598				135,729				129,658
Savings deposits			104,720				103,901				95,594				89,265				84,975
Money market deposits			130,987				138,915				122,976				126,501				134,365
Time deposits			220,004				212,047				197,716				193,673				188,403
Total deposits			707,333				712,915				673,073				662,144				648,300
Advances from Federal Home Loan Bank			20,500				15,500				26,500				23,000				23,000
Repurchase agreements			11,175				11,796				10,532				11,363				17,797
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			563				450				408				427				384
Other liabilities			8,756				7,849				8,634				8,293				8,422
Total liabilities			758,637				758,820				729,457				715,537				708,213
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			15,260				15,224				15,362				15,370				15,367
Retained earnings			49,851				48,118				46,688				44,933				42,925
Accumulated other comprehensive income			340				136				51				1,237				1,552
Treasury shares			(2,972	)			(2,002	)			(2,105	)			(1,829	)			(1,446	)
Total equity			89,031				88,028				86,548				86,263				84,950
Total liabilities and equity		$	847,668				846,848				816,005				801,800				793,163

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands - except share data)		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
Interest income		2017				2017				2016				2016				2016				2017				2016
Loans
Taxable		$	7,243				6,800				6,984				6,954				6,648				14,043				12,908
Nontaxable			21				20				20				22				24				41				33
Securities
Taxable			569				461				364				378				392				1,030				794
Nontaxable			133				133				144				145				149				266				305
Total interest income			7,966				7,414				7,512				7,499				7,213				15,380				14,040
Interest expense
Deposits			863				748				709				677				647				1,611				1,192
Repurchase Agreements & Other			6				4				2				5				4				10				9
Federal Home Loan Bank advances			63				86				86				83				77				149				183
Trust preferred securities			71				70				68				63				62				141				121
Total interest expense			1,003				908				865				828				790				1,911				1,505
Net interest income			6,963				6,506				6,647				6,671				6,423				13,469				12,535
Provision for loan losses			200				-				500				-				-				200				250
Net interest income after provision for loan losses			6,763				6,506				6,147				6,671				6,423				13,269				12,285
Noninterest income
Wealth Management Fees			704				667				657				695				643				1,371				1,276
Customer service fees			667				640				653				692				680				1,307				1,360
Gain on sale of mtg. loans & OMSR's			2,063				1,250				2,002				2,503				2,284				3,313				3,667
Mortgage loan servicing fees, net			241				383				1,324				205				(273	)			624				(719	)
Gain on sale of non-mortgage loans			369				430				52				327				151				799				600
Data service fees			184				193				184				223				233				377				510
Net gain on sales of securities			-				-				-				59				92				-				203
Gain/(loss) on sale/disposal of assets			8				2				-				(31	)			186				10				208
Other income			226				237				256				342				311				463				641
Total non-interest income			4,462				3,802				5,128				5,015				4,307				8,264				7,746
Noninterest expense
Salaries and employee benefits			4,667				4,386				4,656				4,672				4,314				9,053				8,093
Net occupancy expense			552				560				533				523				524				1,112				1,089
Equipment expense			683				641				735				649				639				1,324				1,234
Data processing fees			396				370				384				352				339				766				644
Professional fees			417				363				404				380				326				780				642
Marketing expense			206				195				154				123				199				401				370
Telephone and communication			113				116				111				101				102				229				201
Postage and delivery expense			59				174				148				154				162				233				359
State, local and other taxes			170				167				154				170				171				337				270
Employee expense			183				145				182				117				128				328				246
Other expenses			360				265				398				689				503				625				1,154
Total non-interest expense			7,806				7,382				7,859				7,930				7,407				15,188				14,302
Income before income tax expense			3,419				2,926				3,416				3,756				3,323				6,345				5,729
Income tax expense			1,102				933				1,098				1,209				1,058				2,035				1,809
Net income		$	2,317				1,993				2,317				2,547				2,265				4,310				3,920
Preferred Share Dividends			244				244				244				244				244				488				488
Net income available to common shares			2,073				1,749				2,073				2,303				2,021				3,822				3,432
Common share data:
Basic earnings per common share		$	0.43				0.36				0.43				0.47				0.41				0.79				0.70
Diluted earnings per common share		$	0.37				0.31				0.37				0.40				0.35				0.68				0.61
Average shares outstanding ($ in thousands):
Basic:			4,827				4,859				4,846				4,874				4,893				4,839				4,894
Diluted:			6,351				6,387				6,359				6,376				6,390				6,366				6,396

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

  

($ in thousands, except per share data)		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
SUMMARY OF OPERATIONS		2017				2017				2016				2016				2016				2017				2016
Net interest income		$	6,963				6,506				6,647				6,671				6,423				13,469				12,535
Tax-equivalent adjustment		$	79				79				84				86				89				158				174
Tax-equivalent net interest income		$	7,042				6,585				6,731				6,757				6,512				13,627				12,709
Provision for loan loss		$	200				-				500				-				-				200				250
Noninterest income		$	4,462				3,802				5,128				5,015				4,307				8,264				7,746
Total operating revenue		$	11,425				10,308				11,775				11,686				10,730				21,733				20,281
Noninterest expense		$	7,806				7,382				7,859				7,930				7,407				15,188				14,302
Pre-tax pre-provision income		$	3,619				2,926				3,916				3,756				3,323				6,545				5,979
Pretax income		$	3,419				2,926				3,416				3,756				3,323				6,345				5,729
Net income		$	2,317				1,993				2,317				2,547				2,265				4,310				3,920
Income available to common shareholders		$	2,073				1,749				2,073				2,303				2,021				3,822				3,433
PER SHARE INFORMATION:
Basic earnings per share		$	0.43				0.36				0.43				0.47				0.41				0.79				0.70
Diluted earnings per share		$	0.37				0.31				0.37				0.40				0.35				0.68				0.61
Common dividends		$	0.070				0.065				0.065				0.060				0.060				0.135				0.115
Book value per common share		$	14.21				13.92				13.75				13.67				13.39				14.21				13.39
Tangible book value per common share		$	12.20				11.83				11.59				11.49				11.15				12.20				11.15
Market price per common share		$	16.88				16.72				16.05				12.53				10.87				16.88				10.87
Market price per preferred share		$	16.89				16.85				15.85				13.50				11.83				16.89				11.83
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.09	%			0.96	%			1.14	%			1.28	%			1.15	%			1.03	%			1.01	%
Pre-tax pre-provision ROAA			1.70	%			1.41	%			1.92	%			1.89	%			1.69	%			1.56	%			1.55	%
Return on average equity			10.45	%			9.13	%			10.72	%			11.90	%			10.80	%			9.80	%			9.43	%
Return on average tangible equity			15.91	%			14.00	%			16.54	%			18.45	%			16.94	%			14.97	%			14.87	%
Efficiency ratio			68.30	%			71.59	%			66.71	%			67.83	%			69.00	%			69.88	%			70.49	%
Earning asset yield			4.26	%			4.08	%			4.17	%			4.29	%			4.20	%			4.18	%			4.19	%
Cost of interest bearing liabilities			0.64	%			0.60	%			0.58	%			0.56	%			0.55	%			0.62	%			0.53	%
Net interest margin			3.69	%			3.55	%			3.64	%			3.77	%			3.69	%			3.62	%			3.69	%
Tax equivalent effect			0.04	%			0.04	%			0.05	%			0.05	%			0.06	%			0.04	%			0.06	%
Net interest margin, tax equivalent			3.73	%			3.59	%			3.69	%			3.82	%			3.75	%			3.66	%			3.75	%
Non interest income/Average assets			2.09	%			1.84	%			2.52	%			2.52	%			2.20	%			1.97	%			2.00	%
Non interest expense/Average assets			3.66	%			3.57	%			3.86	%			3.98	%			3.78	%			3.62	%			3.70	%
Net noninterest expense/Average assets			1.57	%			1.73	%			1.34	%			1.46	%			1.58	%			1.65	%			1.70	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	69				51				269				136				2				120				96
Recoveries		$	15				5				175				6				247				20				306
Net charge-offs		$	54				46				95				130				(245	)			100				(210	)
Nonaccruing loans/ Total loans			0.38	%			0.38	%			0.42	%			0.47	%			1.11	%			0.38	%			1.11	%
Nonperforming loans/ Total loans			0.59	%			0.60	%			0.67	%			0.72	%			1.34	%			0.59	%			1.34	%
Nonperforming assets/ Loans & OREO			0.60	%			0.75	%			0.82	%			0.73	%			1.36	%			0.60	%			1.36	%
Nonperforming assets/ Total assets			0.46	%			0.56	%			0.65	%			0.57	%			1.04	%			0.46	%			1.04	%
Allowance for loan loss/ Nonperforming loans			205.06	%			203.96	%			178.53	%			163.50	%			92.27	%			205.06	%			92.27	%
Allowance for loan loss/ Total loans			1.20	%			1.23	%			1.20	%			1.18	%			1.23	%			1.20	%			1.23	%
Net loan charge-offs/ Average loans (ann.)			0.03	%			0.03	%			0.06	%			0.08	%			(0.16	%)			0.03	%			(0.07	%)
Loan loss provision/ Net charge-offs			370.37	%			0.00	%			526.32	%			0.00	%			0.00	%			200.00	%			(119.05	%)
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			92.12	%			87.91	%			95.74	%			93.54	%			93.29	%			92.12	%			93.29	%
Equity/ Assets			10.50	%			10.39	%			10.61	%			10.76	%			10.71	%			10.50	%			10.71	%
Tangible equity/ Tangible assets			7.05	%			6.94	%			7.02	%			7.11	%			7.02	%			7.05	%			7.02	%
Tangible equity adjusted for conversion			8.74	%			8.62	%			8.77	%			8.89	%			8.82	%			8.74	%			8.82	%
END OF PERIOD BALANCES
Total assets		$	847,668				846,848				816,005				801,800				793,163				847,668				793,163
Total loans		$	651,589				626,722				644,433				619,352				604,776				651,589				604,776
Deposits		$	707,333				712,915				673,073				662,144				648,300				707,333				648,300
Stockholders equity		$	89,031				88,028				86,548				86,263				84,950				89,031				84,950
Goodwill & intangibles		$	16,417				16,419				16,422				16,426				16,429				16,417				16,429
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	58,631				57,626				56,143				55,854				54,538				58,631				54,538
Mortgage servicing portfolio		$	952,364				917,435				899,710				868,783				831,781				952,364				831,781
Wealth/Brokerage assets under care		$	407,268				404,290				378,131				375,787				367,223				407,268				367,223
Total assets under care		$	2,207,300				2,168,573				2,093,846				2,046,370				1,992,167				2,207,300				1,992,167
Full-time equivalent employees			237				231				227				224				223				237				223
Period end basic shares outstanding			4,807				4,873				4,844				4,860				4,892				4,807				4,892
Period end outstanding (Series A Converted)			1,459				1,452				1,452				1,452				1,452				1,459				1,452
AVERAGE BALANCES
Total assets		$	852,526				827,514				814,423				796,027				784,353				840,044				772,806
Total earning assets		$	754,736				734,378				729,525				707,679				694,629				743,703				678,259
Total loans		$	644,658				637,490				634,664				614,731				596,724				641,094				582,824
Deposits		$	717,472				683,639				672,226				650,751				644,429				700,598				630,216
Stockholders equity		$	88,637				87,344				86,433				85,616				83,894				87,985				83,148
Intangibles		$	16,418				16,421				16,424				16,427				16,431				16,419				16,432
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	58,236				56,940				56,026				55,206				53,480				57,583				52,733
Average basic shares outstanding			4,827				4,859				4,846				4,874				4,893				4,839				4,894
Average diluted shares outstanding			6,351				6,387				6,359				6,376				6,390				6,366				6,396

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

  At and for the Three and Six Months Ended June 30, 2017 and 2016

 

($ in Thousands)		Three Months Ended Jun. 30, 2017												Three Months Ended Jun. 30, 2016
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	95,748				569				2.38	%		$	82,418				392				1.90	%
Nontaxable securities			14,330				202				5.62	%			15,487				226				5.84	%
Loans, net			644,658				7,274				4.51	%			596,724				6,684				4.48	%
Total earning assets			754,736				8,045				4.26	%			694,629				7,302				4.20	%
Cash and due from banks			38,905												34,704
Allowance for loan losses			(7,756	)											(7,429	)
Premises and equipment			21,062												19,192
Other assets			45,579												43,257
Total assets		$	852,526											$	784,353
Liabilities
Savings and interest bearing demand		$	371,352				194				0.21	%		$	345,418				127				0.15	%
Time deposits			219,716				669				1.22	%			185,674				520				1.12	%
Repurchase agreements & Other			9,728				6				0.25	%			15,066				4				0.11	%
Advances from Federal Home Loan Bank			15,995				63				1.58	%			21,176				77				1.45	%
Trust preferred securities			10,310				71				2.75	%			10,310				62				2.41	%
Total interest bearing liabilities			627,101				1,003				0.64	%			577,644				790				0.55	%
Non interest bearing demand			126,404				-								113,337
Total funding			753,505								0.53	%			690,981								0.46	%
Other liabilities			10,384												9,478
Total liabilities			763,889												700,459
Equity			88,637												83,894
Total liabilities and equity		$	852,526											$	784,353
Net interest income (tax equivalent basis)						$	7,042											$	6,512
Net interest income as a percent of average interest-earning assets											3.73	%											3.75	%

 

  

		Six Months Ended Jun. 30, 2017												Six Months Ended Jun. 30, 2016
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	88,363				1,030				2.33	%		$	79,517				794				2.00	%
Nontaxable securities			14,246				403				5.66	%			15,918				462				5.80	%
Loans, net			641,094				14,105				4.40	%			582,824				12,958				4.45	%
Total earning assets			743,703				15,538				4.18	%			678,259				14,214				4.19	%
Cash and due from banks			38,285												39,001
Allowance for loan losses			(7,778	)											(7,274	)
Premises and equipment			20,829												19,299
Other assets			45,005												43,520
Total assets		$	840,044											$	772,805
Liabilities
Savings and interest bearing demand		$	364,982				366				0.20	%		$	341,141				240				0.14	%
Time deposits			211,460				1,245				1.18	%			176,485				952				1.08	%
Repurchase agreements & Other			11,753				10				0.17	%			15,792				9				0.11	%
Advances from Federal Home Loan Bank			19,464				149				1.53	%			24,113				183				1.52	%
Trust preferred securities			10,310				141				2.74	%			10,310				121				2.35	%
Total interest bearing liabilities			617,969				1,911				0.62	%			567,841				1,505				0.53	%
Non interest bearing demand			124,156								0.52	%			112,590								0.44	%
Total funding			742,125												680,431
Other liabilities			9,934												9,226
Total liabilities			752,059												689,657
Equity			87,985												83,148
Total liabilities and equity		$	840,044											$	772,805
Net interest income (tax equivalent basis)						$	13,627											$	12,709
Net interest income as a percent of average interest-earning assets											3.66	%											3.75	%

 

 

11