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 2017 Results

 

Year-to-date earnings per share growth of 9.9% and loan growth of 9%

 

DEFIANCE, Ohio, October 19, 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 third-quarter and nine-months ended September 30, 2017.

 

Third-quarter 2017 highlights over prior-year third quarter include:

●         Net income of $2.7 million, an increase of 6.9 percent, or $0.2 million

●         Return on average assets of 1.27 percent

●         Diluted earnings per share (EPS) of $0.43, an increase of 7.5 percent, or $0.03 per share

●         Mortgage origination volume of $89.2 million, a decrease of 23.9 percent, or $28.0 million from $117.2 million

 

Nine-months ended September 30, 2017 highlights over prior-year nine months include:

●         Net income of $7.0 million, an increase of 8.8 percent, or $0.6 million

●         Return on average assets of 1.11 percent

●         Diluted earnings per share (EPS) of $1.11, an increase of 9.9 percent, or $0.10 per share

 

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

●         Loan growth of $55.7 million, or 9.0 percent vs. $78.5 million, or 14.5 percent

●         Deposit growth of $54.7 million, or 9.0 percent vs. $88.6 million, or 15.4 percent

●         Servicing portfolio of $979.3 million, up 12.7 percent, or $110.5 million

●         Diluted earnings per share (EPS) of $1.48, an increase of 13.8 percent, or $0.18 per share

 

Highlights		Three Months Ended												Nine Months Ended
($000’s except ratios and share data)		Sep. 2017				Sep. 2016				% Change				Sep. 2017				Sep. 2016				% Change
Operating revenue		$	12,124			$	11,686				3.8	%		$	33,857			$	31,967				5.9	%
Interest income			8,338				7,499				11.2				23,718				21,539				10.1
Interest expense			1,075				828				29.8				2,986				2,333				28.0
Net interest income			7,263				6,671				8.9				20,732				19,206				7.9
Noninterest income			4,861				5,015				(3.1	)			13,125				12,761				2.9
Noninterest expense			8,284				7,930				4.5				23,472				22,232				5.6
Net income			2,723				2,547				6.9				7,033				6,467				8.8
Earnings per diluted share			0.43				0.40				7.5				1.11				1.01				9.9
Net interest margin (FTE)			3.81	%			3.82	%			(0.0	)			3.71	%			3.77	%			(1.6	)
Return on average assets			1.27	%			1.28	%			(0.8	)			1.11	%			1.10	%			0.1
Return on average equity			12.11	%			11.90	%			1.8				10.57	%			10.27	%			2.9

 

“We are encouraged to report a nearly 7 percent increase in earnings for the third quarter, coupled with improved asset quality and 9 percent loan growth,” said Mark A. Klein, Chairman, President and CEO of SB Financial. “Despite a softer residential mortgage origination market, we achieved success with higher loan growth, SBA gains and controlled expenses.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 3.8 percent from the third quarter of 2016, and up 6.1 percent from the linked quarter.

 

	●	Net interest income was up 8.9 percent from the year-ago quarter, and up 4.3 percent from the linked quarter.
	●	Net interest margin (FTE) was down 1 basis point from the year-ago quarter, but up 8 basis points from the linked quarter.
	●	Noninterest income was down 3.1 percent from the year-ago quarter, but up 8.9 percent from the linked quarter.
	●	Total revenue for the first nine months of 2017 was $33.9 million compared to $32.0 million for the first nine months of 2016, which is a 6.0 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the third quarter of 2017 were $89.2 million, down $28.0 million, or 23.9 percent, from the year-ago quarter. Total sales of originated loans were $76.9 million, down $24.2 million, or 24.0 percent from the year-ago quarter.

 

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.4 million for the third quarter of 2017, compared to $2.7 million for the year-ago quarter, or a 9.9 percent decrease. The mortgage servicing valuation adjustment for the third quarter 2017 was a negative $0.04 million, compared to a positive adjustment of $0.07 million for the third quarter of 2016. The aggregate servicing valuation impairment ended the quarter at $0.3 million. The mortgage-servicing portfolio at September 30, 2017, was $979.3 million, up $110.5 million, or 12.7 percent, from $868.8 million at September 30, 2016.

 

Mr. Klein noted, “Mortgage originations were down from the prior year and linked quarter due to lower market activity reflecting the limited availability of inventory. We were able to improve profitability from the linked quarter with better pricing and pipeline management. Again this quarter, 95 percent of our volume was from new clients to the Company.”

 

Mortgage Banking ($000’s)
		Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016
Mortgage originations		$	89,217			$	97,804			$	56,667			$	83,469			$	117,209
Mortgage sales			76,919				80,038				50,473				81,689				101,147
Mortgage servicing portfolio			979,251				952,364				917,435				899,710				868,783
Mortgage servicing rights			9,560				9,217				8,727				8,422				6,887
Mortgage servicing revenue:
Loan servicing fees			605				583				566				553				531
OMSR amortization			(343	)			(303	)			(218	)			(462	)			(397	)
Net administrative fees			262				280				348				91				134
OMSR valuation adjustment			(35	)			(39	)			35				1,233				71
Net loan servicing fees			227				241				383				1,324				205
Gain on sale of mortgages			2,211				2,063				1,250				2,002				2,503
Mortgage banking revenue, net		$	2,438			$	2,304			$	1,633			$	3,326			$	2,708

 

 

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 $4.1 million and gains of $0.2 million. Wealth management assets under the Company’s care stood at $429.8 million as of September 30, 2017. Noninterest income as a percentage of total revenue was 40.1 percent.

 

For the third quarter of 2017, noninterest expense (NIE) of $8.3 million, was up $0.4 million, or 4.5 percent, compared to the same quarter last year. The increase was due mainly to staffing increases and higher marketing costs. Compared to the linked quarter, NIE was up $0.5 million, or 6.1 percent.

 

Mr. Klein stated, “Fee income continues to be a strength, with 39 percent of total revenue for the year. SBA and wealth management have increased their contribution offsetting the slowdown in residential mortgage.”

 

Noninterest Income / Noninterest Expense ($000’s)
		Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016
Noninterest Income (NII)		$	4,861			$	4,462			$	3,802			$	5,128			$	5,015
NII / Total Revenue			40.1	%			39.1	%			36.9	%			43.6	%			42.9	%
NII / Average Assets			2.3	%			2.1	%			1.8	%			2.5	%			2.5	%
Noninterest Expense (NIE)		$	8,284			$	7,806			$	7,382			$	7,859			$	7,930
Efficiency Ratio			68.3	%			68.3	%			71.6	%			66.7	%			67.8	%
NIE / Average Assets			3.9	%			3.7	%			3.6	%			3.9	%			4.0	%
Net Noninterest Expense			(1.6	)			(1.6	)			(1.7	)			(1.3	)			(1.5	)

 

Balance Sheet

 

Total assets as of September 30, 2017, were $860.5 million, up $58.7 million, or 7.3 percent, from a year ago. Total equity as of September 30, 2017, was $90.9 million, up 5.4 percent from a year ago, and was at 10.6 percent of total assets.

 

Total loans held for investment were $675.1 million at September 30, 2017, up $55.7 million, or 9.0 percent, from September 30, 2016. Commercial real estate loans were up $51.4 million, or 19.1 percent, and accounted for the majority of the total loan growth. Commercial (C&I) also rose $3.5 million, or 3.4 percent, from the prior period.

 

The investment portfolio of $89.1 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 10.3 percent of assets at September 30, 2017, and was down 7.7 percent from the year-ago period. Deposit balances of $716.8 million at September 30, 2017, increased by $54.7 million, or 8.3 percent, since September 30, 2016. Growth from the prior year included $2.6 million in checking and $52.1 million in savings and time deposit balances.

 

“Loan growth was strong for the quarter, up nearly $23 million, a 14 percent annualized rate,” said Mr. Klein. “Most importantly we were able to fund the bulk of our year-over-year loan growth with retail deposit balances.”

 

Loan Portfolio ($000’s)		Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Variance YOY
Commercial		$	104,723			$	107,319			$	102,392			$	109,087			$	101,245			$	3,478
% of Total			15.5	%			16.5	%			16.4	%			16.9	%			16.4	%			3.4	%
Commercial RE			319,764				296,116				282,951				284,084				268,408				51,356
% of Total			47.4	%			45.4	%			45.1	%			44.1	%			43.3	%			19.1	%
Agriculture			51,140				52,107				47,580				52,475				54,609				(3,469	)
% of Total			7.8	%			8.0	%			7.6	%			8.2	%			8.8	%			(6.4	%)
Residential RE			141,296				137,214				136,762				142,452				139,757				1,539
% of Total			20.9	%			21.1	%			21.8	%			22.1	%			22.6	%			1.1	%
Consumer & Other			58,152				58,833				57,037				56,335				55,333				2,819
% of Total			8.6	%			9.0	%			9.1	%			8.7	%			8.9	%			5.1	%
Total Loans		$	675,075			$	651,589			$	626,722			$	644,433			$	619,352			$	55,723
Total Growth Percentage																							9.0	%

 

 

Deposit Bal. ($000’s)		Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Variance YOY
Non-Int DDA		$	124,840			$	124,213			$	124,664			$	125,189			$	116,976			$	7,864
% of Total			17.4	%			17.6	%			17.5	%			18.6	%			17.7	%			6.7	%
Interest DDA			130,513				127,409				133,388				131,598				135,729				(5,216	)
% of Total			18.2	%			18.0	%			18.7	%			19.5	%			20.5	%			(3.8	%)
Savings			103,530				104,720				103,901				95,594				89,265				14,265
% of Total			14.4	%			14.8	%			14.6	%			14.2	%			13.5	%			16.0	%
Money Market			140,647				130,987				138,915				122,976				126,501				14,146
% of Total			19.6	%			18.5	%			19.5	%			18.3	%			19.1	%			11.2	%
Certificates			217,277				220,004				212,047				197,716				193,673				23,604
% of Total			30.3	%			31.1	%			29.7	%			29.4	%			29.3	%			12.2	%
Total Deposits		$	716,807			$	707,333			$	712,915			$	673,073			$	662,144			$	54,663
Total Growth Percentage																							8.3	%

Asset Quality

 

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $3.7 million as of September 30, 2017, down $0.8 million, or 18.0 percent, from the year-ago quarter. SB Financial’s nonperforming assets to total assets ratio of 0.43 percent is down from 0.57 percent at September 30, 2016. The coverage of problem loans by the loan loss allowance was at 213.3 percent at September 30, 2017, up from the 163.5 percent at September 30, 2016.

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Category		Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Sep. 2016				Variance YOY
Commercial & Agriculture		$	125			$	132			$	187			$	194			$	151			$	(26	)
% of Total Com./Ag. loans			0.08	%			0.08	%			0.13	%			0.12	%			0.10	%			(17.2	%)
Commercial RE			1,029				1,049				939				1,194				1,393				(364	)
% of Total CRE loans			0.32	%			0.35	%			0.33	%			0.42	%			0.52	%			(26.1	%)
Residential RE			1,074				1,115				1,126				1,162				1,152				(78	)
% of Total Res. RE loans			0.76	%			0.81	%			0.82	%			0.82	%			0.82	%			(6.8	%)
Consumer & Other			153				154				130				187				193				(40	)
% of Total Con./Oth. loans			0.26	%			0.26	%			0.23	%			0.33	%			0.35	%			(20.7	%)
Total Nonaccruing Loans			2,381				2,450				2,382				2,737				2,889				(508	)
% of Total loans			0.35	%			0.38	%			0.38	%			0.43	%			0.47	%			(17.6	%)
Accruing Restructured Loans			1,258				1,366				1,383				1,590				1,588
Total Nonaccruing & Restructured Loans		$	3,639			$	3,816			$	3,765			$	4,327			$	4,477			$	(838	)
% of Total loans			0.54	%			0.59	%			0.60	%			0.67	%			0.72	%			(18.7	%)
Foreclosed Assets			94				94				950				994				73
Total Nonperforming Assets		$	3,733			$	3,910			$	4,715			$	5,321			$	4,550			$	(817	)
% of Total assets			0.43	%			0.46	%			0.56	%			0.65	%			0.57	%			(18.0	%)

 

 

“The quarter saw a reduction in our nonperforming ratio to just 43 basis points,” said Mr. Klein. “With net charge-offs for the year of $165,000, our asset quality continues to be at the top of our peer group.”

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on October 20, 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)

 

		September				June				March				December				September
($ in Thousands)		2017				2017				2017				2016				2016
ASSETS
Cash and due from banks		$	28,258				21,385				45,740				17,012				25,167
Securities available for sale, at fair value			85,304				103,347				107,937				90,129				92,689
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			89,052				107,095				111,685				93,877				96,437
Loans held for sale			7,663				9,437				5,104				4,434				5,865
Loans, net of unearned income			675,075				651,589				626,722				644,433				619,352
Allowance for loan losses			(7,760	)			(7,825	)			(7,679	)			(7,725	)			(7,320	)
Net loans			667,315				643,764				619,043				636,708				612,032
Premises, equipment and software, net			21,271				20,740				19,909				19,129				18,673
Cash surrender value of life insurance			13,692				13,859				13,791				13,725				13,653
Goodwill & other intangibles			16,414				16,417				16,419				16,422				16,426
Foreclosed assets held for sale, net			94				94				950				994				73
Mortgage servicing rights			9,560				9,217				8,727				8,422				6,887
Accrued interest receivable			1,880				1,411				1,462				1,512				1,641
Other assets			5,263				4,249				4,018				3,770				4,946
Total assets		$	860,462				847,668				846,848				816,005				801,800
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	124,840				124,213				124,664				125,189				116,976
Interest bearing demand			130,513				127,409				133,388				131,598				135,729
Savings deposits			103,530				104,720				103,901				95,594				89,265
Money market deposits			140,647				130,987				138,915				122,976				126,501
Time deposits			217,277				220,004				212,047				197,716				193,673
Total deposits			716,807				707,333				712,915				673,073				662,144
Advances from Federal Home Loan Bank			20,500				20,500				15,500				26,500				23,000
Repurchase agreements			11,343				11,175				11,796				10,532				11,363
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			611				563				450				408				427
Other liabilities			9,982				8,756				7,849				8,634				8,293
Total liabilities			769,553				758,637				758,820				729,457				715,537
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			15,335				15,260				15,224				15,362				15,370
Retained earnings			51,991				49,851				48,118				46,688				44,933
Accumulated other comprehensive income			335				340				136				51				1,237
Treasury shares			(3,304	)			(2,972	)			(2,002	)			(2,105	)			(1,829	)
Total equity			90,909				89,031				88,028				86,548				86,263
Total liabilities and equity		$	860,462				847,668				846,848				816,005				801,800

 

 

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
Interest income		2017				2017				2017				2016				2016				2017				2016
Loans
Taxable		$	7,653				7,243				6,800				6,984				6,954				21,696				19,862
Nontaxable			21				21				20				20				22				62				55
Securities
Taxable			532				569				461				364				378				1,562				1,172
Nontaxable			132				133				133				144				145				398				450
Total interest income			8,338				7,966				7,414				7,512				7,499				23,718				21,539
Interest expense
Deposits			907				863				748				709				677				2,518				1,869
Repurchase Agreements & Other			4				2				4				2				5				10				14
Federal Home Loan Bank advances			86				63				86				86				83				235				266
Trust preferred securities			78				75				70				68				63				223				184
Total interest expense			1,075				1,003				908				865				828				2,986				2,333
Net interest income			7,263				6,963				6,506				6,647				6,671				20,732				19,206
Provision for loan losses			-				200				-				500				-				200				250
Net interest income after provision for loan losses			7,263				6,763				6,506				6,147				6,671				20,532				18,956
Noninterest income
Wealth Management Fees			688				704				667				657				695				2,059				1,971
Customer service fees			674				667				640				653				692				1,981				2,052
Gain on sale of mtg. loans & OMSR's			2,211				2,063				1,250				2,002				2,503				5,524				6,170
Mortgage loan servicing fees, net			227				241				383				1,324				205				851				(514	)
Gain on sale of non-mortgage loans			294				369				430				52				327				1,093				927
Data service fees			182				184				193				184				223				559				733
Net gain on sales of securities			119				-				-				-				59				119				262
Gain/(loss) on sale/disposal of assets			8				8				2				-				(31	)			18				177
Other income			458				226				237				256				342				921				983
Total non-interest income			4,861				4,462				3,802				5,128				5,015				13,125				12,761
Noninterest expense
Salaries and employee benefits			4,844				4,667				4,386				4,656				4,672				13,897				12,765
Net occupancy expense			566				552				560				533				523				1,678				1,612
Equipment expense			688				683				641				735				649				2,012				1,883
Data processing fees			429				396				370				384				352				1,195				996
Professional fees			502				417				363				404				380				1,282				1,022
Marketing expense			180				206				195				154				123				581				493
Telephone and communication			120				113				116				111				101				349				302
Postage and delivery expense			103				59				174				148				154				336				513
State, local and other taxes			198				170				167				154				170				535				440
Employee expense			242				183				145				182				117				570				363
Other expenses			412				360				265				398				689				1,037				1,843
Total non-interest expense			8,284				7,806				7,382				7,859				7,930				23,472				22,232
Income before income tax expense			3,840				3,419				2,926				3,416				3,756				10,185				9,485
Income tax expense			1,117				1,102				933				1,098				1,209				3,152				3,018
Net income		$	2,723				2,317				1,993				2,317				2,547				7,033				6,467
Preferred Share Dividends			244				244				244				244				244				731				731
Net income available to common shares			2,479				2,073				1,749				2,073				2,303				6,302				5,736
Common share data:
Basic earnings per common share		$	0.52				0.43				0.36				0.43				0.47				1.31				1.17
Diluted earnings per common share		$	0.43				0.37				0.31				0.37				0.40				1.11				1.01
Average shares outstanding ($ in thousands):
Basic:			4,797				4,827				4,859				4,846				4,874				4,825				4,888
Diluted:			6,326				6,351				6,387				6,359				6,376				6,356				6,384

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended																				Nine Months Ended
SUMMARY OF		September				June				March				December				September				September				September
OPERATIONS		2017				2017				2017				2016				2016				2017				2016
Net interest income		$	7,263				6,963				6,506				6,647				6,671				20,732				19,206
Tax-equivalent adjustment		$	79				79				79				84				86				237				260
Tax-equivalent net interest income		$	7,342				7,042				6,585				6,731				6,757				20,969				19,466
Provision for loan loss		$	-				200				-				500				-				200				250
Noninterest income		$	4,861				4,462				3,802				5,128				5,015				13,125				12,761
Total operating revenue		$	12,124				11,425				10,308				11,775				11,686				33,857				31,967
Noninterest expense		$	8,284				7,806				7,382				7,859				7,930				23,472				22,232
Pre-tax pre-provision income		$	3,840				3,619				2,926				3,916				3,756				10,385				9,735
Pretax income		$	3,840				3,419				2,926				3,416				3,756				10,185				9,485
Net income		$	2,723				2,317				1,993				2,317				2,547				7,033				6,467
Income available to common shareholders		$	2,479				2,073				1,749				2,073				2,303				6,302				5,736
PER SHARE INFORMATION:
Basic earnings per share		$	0.52				0.43				0.36				0.43				0.47				1.31				1.17
Diluted earnings per share		$	0.43				0.37				0.31				0.37				0.40				1.11				1.01
Common dividends		$	0.070				0.070				0.065				0.065				0.060				0.205				0.175
Book value per common share		$	14.55				14.21				13.92				13.75				13.67				14.55				13.67
Tangible book value per common share		$	12.64				12.20				11.83				11.59				11.49				12.64				11.49
Market price per common share		$	17.16				16.88				16.72				16.05				12.53				17.16				12.53
Market price per preferred share		$	16.45				16.89				16.85				15.85				13.50				16.45				13.50
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.27	%			1.09	%			0.96	%			1.14	%			1.28	%			1.11	%			1.10	%
Pre-tax pre-provision ROAA			1.79	%			1.70	%			1.41	%			1.92	%			1.89	%			1.64	%			1.66	%
Return on average equity			12.11	%			10.46	%			9.13	%			10.72	%			11.90	%			10.57	%			10.27	%
Return on average tangible equity			18.28	%			15.91	%			14.00	%			16.54	%			18.45	%			16.09	%			16.10	%
Efficiency ratio			68.30	%			68.30	%			71.59	%			66.71	%			67.83	%			69.33	%			69.52	%
Earning asset yield			4.36	%			4.26	%			4.08	%			4.17	%			4.29	%			4.24	%			4.22	%
Cost of interest bearing liabilities			0.68	%			0.64	%			0.60	%			0.58	%			0.56	%			0.64	%			0.54	%
Net interest margin			3.77	%			3.69	%			3.55	%			3.64	%			3.77	%			3.67	%			3.72	%
Tax equivalent effect			0.04	%			0.04	%			0.04	%			0.05	%			0.05	%			0.04	%			0.05	%
Net interest margin, tax equivalent			3.81	%			3.73	%			3.59	%			3.69	%			3.82	%			3.71	%			3.77	%
Non interest income/Average assets			2.27	%			2.09	%			1.84	%			2.52	%			2.52	%			2.07	%			2.18	%
Non interest expense/Average assets			3.87	%			3.66	%			3.57	%			3.86	%			3.98	%			3.70	%			3.80	%
Net noninterest expense/Average assets			1.60	%			1.57	%			1.73	%			1.34	%			1.46	%			1.63	%			1.62	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	75				69				51				269				136				195				232
Recoveries		$	10				15				5				175				6				30				312
Net charge-offs		$	65				54				46				95				130				165				(80	)
Nonaccruing loans/ Total loans			0.35	%			0.38	%			0.38	%			0.42	%			0.47	%			0.35	%			0.47	%
Nonperforming loans/ Total loans			0.54	%			0.59	%			0.60	%			0.67	%			0.72	%			0.54	%			0.72	%
Nonperforming assets/ Loans & OREO			0.55	%			0.60	%			0.75	%			0.82	%			0.73	%			0.55	%			0.73	%
Nonperforming assets/ Total assets			0.43	%			0.46	%			0.56	%			0.65	%			0.57	%			0.43	%			0.57	%
Allowance for loan loss/ Nonperforming loans			213.25	%			205.06	%			203.96	%			178.53	%			163.50	%			213.25	%			163.50	%
Allowance for loan loss/ Total loans			1.15	%			1.20	%			1.23	%			1.20	%			1.18	%			1.15	%			1.18	%
Net loan charge-offs/ Average loans (ann.)			0.04	%			0.03	%			0.03	%			0.06	%			0.08	%			0.03	%			(0.02	%)
Loan loss provision/ Net charge-offs			0.00	%			370.37	%			0.00	%			526.32	%			0.00	%			121.21	%			(312.50	%)
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			94.18	%			92.12	%			87.91	%			95.74	%			93.54	%			94.18	%			93.54	%
Equity/ Assets			10.57	%			10.50	%			10.39	%			10.61	%			10.76	%			10.57	%			10.76	%
Tangible equity/ Tangible assets			7.17	%			7.05	%			6.94	%			7.02	%			7.11	%			7.17	%			7.11	%
Tangible equity adjusted for conversion			8.83	%			8.74	%			8.62	%			8.77	%			8.89	%			8.83	%			8.89	%
END OF PERIOD BALANCES
Total assets		$	860,462				847,668				846,848				816,005				801,800				860,462				801,800
Total loans		$	675,075				651,589				626,722				644,433				619,352				675,075				619,352
Deposits		$	716,807				707,333				712,915				673,073				662,144				716,807				662,144
Stockholders equity		$	90,909				89,031				88,028				86,548				86,263				90,909				86,263
Goodwill & intangibles		$	16,414				16,417				16,419				16,422				16,426				16,414				16,426
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	60,512				58,631				57,626				56,143				55,854				60,512				55,854
Mortgage servicing portfolio		$	979,251				952,364				917,435				899,710				868,783				979,251				868,783
Wealth/Brokerage assets under care		$	429,777				407,268				404,290				378,131				375,787				429,777				375,787
Total assets under care		$	2,269,490				2,207,300				2,168,573				2,093,846				2,046,370				2,269,490				2,046,370
Full-time equivalent employees			237				237				231				227				224				237				224
Period end basic shares outstanding			4,788				4,807				4,873				4,844				4,860				4,788				4,860
Period end outstanding (Series A Converted)			1,461				1,459				1,452				1,452				1,452				1,461				1,452
AVERAGE BALANCES
Total assets		$	857,147				852,526				827,514				814,423				796,027				845,836				780,583
Total earning assets		$	771,722				754,736				734,378				729,525				707,679				752,753				688,139
Total loans		$	667,943				644,658				637,490				634,664				614,731				650,142				593,538
Deposits		$	712,614				717,472				683,639				672,226				650,751				704,638				637,055
Stockholders equity		$	89,974				88,637				87,344				86,433				85,616				88,676				83,955
Intangibles		$	16,415				16,418				16,421				16,424				16,427				16,418				16,431
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	59,576				58,236				56,940				56,026				55,206				58,275				53,541
Average basic shares outstanding			4,797				4,827				4,859				4,846				4,874				4,825				4,888
Average diluted shares outstanding			6,326				6,351				6,387				6,359				6,376				6,356				6,384

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Nine Months Ended September 30, 2017 and 2016

 

($ in Thousands)		Three Months Ended Sep. 30, 2017												Three Months Ended Sep. 30, 2016
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	89,512				532				2.38	%		$	78,174				378				1.93	%
Nontaxable securities			14,267				200				5.61	%			14,774				220				5.95	%
Loans, net			667,943				7,685				4.60	%			614,731				6,987				4.55	%
Total earning assets			771,722				8,417				4.36	%			707,679				7,585				4.29	%
Cash and due from banks			25,011												32,760
Allowance for loan losses			(7,914	)											(7,494	)
Premises and equipment			21,243												18,921
Other assets			47,085												44,161
Total assets		$	857,147											$	796,027
Liabilities
Savings and interest bearing demand		$	368,080				210				0.23	%		$	348,944				141				0.16	%
Time deposits			218,561				697				1.28	%			188,768				536				1.14	%
Repurchase agreements & Other			12,655				4				0.13	%			17,046				5				0.12	%
Advances from Federal Home Loan Bank			20,772				86				1.66	%			23,000				83				1.44	%
Trust preferred securities			10,310				78				3.03	%			10,310				63				2.44	%
Total interest bearing liabilities			630,378				1,075				0.68	%			588,068				828				0.56	%
Non interest bearing demand			125,973				-								113,039				-
Total funding			756,351								0.57	%			701,107								0.47	%
Other liabilities			10,822												9,304
Total liabilities			767,173												710,411
Equity			89,974												85,616
Total liabilities and equity		$	857,147											$	796,027
Net interest income (tax equivalent basis)						$	7,342											$	6,757
Net interest income as a percent of average interest-earning assets											3.81	%											3.82	%

 

 

		Nine Months Ended Sep. 30, 2017												Nine Months Ended Sep. 30, 2016
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	88,358				1,562				2.36	%		$	78,683				1,172				1.99	%
Nontaxable securities			14,253				603				5.64	%			15,918				682				5.71	%
Loans, net			650,142				21,790				4.47	%			593,538				19,945				4.48	%
Total earning assets			752,753				23,955				4.24	%			688,139				21,799				4.22	%
Cash and due from banks			34,204												36,905
Allowance for loan losses			(7,824	)											(7,348	)
Premises and equipment			20,969												19,172
Other assets			45,734												43,715
Total assets		$	845,836											$	780,583
Liabilities
Savings and interest bearing demand		$	366,026				576				0.21	%		$	343,761				381				0.15	%
Time deposits			213,853				1,942				1.21	%			180,609				1,488				1.10	%
Repurchase agreements & Other			12,057				10				0.11	%			16,213				14				0.12	%
Advances from Federal Home Loan Bank			19,905				235				1.57	%			23,379				266				1.52	%
Trust preferred securities			10,310				223				2.88	%			10,310				184				2.38	%
Total interest bearing liabilities			622,151				2,986				0.64	%			574,272				2,333				0.54	%
Non interest bearing demand			124,759								0.53	%			112,685								0.45	%
Total funding			746,910												686,957
Other liabilities			10,250												9,671
Total liabilities			757,160												696,628
Equity			88,676												83,955
Total liabilities and equity		$	845,836											$	780,583
Net interest income (tax equivalent basis)						$	20,969											$	19,466
Net interest income as a percent of average interest-earning assets											3.71	%											3.77	%

 

 

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