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 2018 Earnings

 

Net income growth of 34% and loan growth of 16%

 

DEFIANCE, Ohio, July 19, 2018 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking and wealth management, today reported earnings for the second-quarter ended June 30, 2018.

 

Second-quarter 2018 highlights over prior-year second quarter include:

·

Total assets increased to $944.8 million, up $97.1 million, or 11.5 percent

·

Net income of $3.1 million, an increase of 34.1 percent

·

Operating revenue of $12.7 million, up $1.2 million, or 10.9 percent

·

Return on average assets of 1.35 percent, up 26 basis points, or 23.9 percent

·

Diluted earnings per share (EPS) of $0.40, an increase of $0.03 per share, or 8.1 percent

 

Six months ended June 30, 2018, highlights over prior-year six months include:

·

Net income of $5.6 million, an increase of $1.3 million, or 29.0 percent

·

Operating revenue of $24.6 million, up $2.9 million, or 13.3 percent

·

Return on average assets of 1.21 percent, up 18 basis points, or 17.5 percent

·

Diluted EPS of $0.75, an increase of $0.07 per share, or 10.3 percent

 

Second-quarter 2018, trailing twelve-month highlights include:

·

Loan growth of $101.7 million, or 15.6 percent

·

Deposit growth of $45.5 million, or 6.4 percent

·

Mortgage origination volume of $109.5 million, an increase of $11.7 million, or 11.9 percent; servicing portfolio of $1.03 billion, up $0.08 billion, or 8.2 percent

 

Highlights		Three Months Ended												Six Months Ended
($ in thousands, except per share & ratios)		Jun. 2018				Jun. 2017				% Change				Jun. 2018				Jun. 2017				% Change
Operating revenue		$	12,673			$	11,425				10.9	%		$	24,616			$	21,733				13.3	%
Interest income			9,731				7,966				22.2				18,583				15,380				20.8
Interest expense			1,307				1,003				30.3				2,459				1,911				28.7
Net interest income			8,424				6,963				21.0				16,124				13,469				19.7
Noninterest income			4,249				4,462				-4.8				8,492				8,264				2.8
Noninterest expense			8,579				7,806				9.9				17,206				15,188				13.3
Net income			3,107				2,317				34.1				5,560				4,310				29.0
Earnings per diluted share			0.40				0.37				8.1				0.75				0.68				10.3
Net interest margin (FTE)			4.14	%			3.73	%			11.0				3.89	%			3.66	%			6.3
Return on average assets			1.35	%			1.09	%			23.9				1.21	%			1.03	%			17.5
Return on average equity			10.02	%			10.45	%			-4.1				9.64	%			9.80	%			-1.6

 

“SB Financial Group’s second-quarter net income was up 34 percent compared to the prior-year quarter,” said Mark A. Klein, Chairman, President and CEO of SB Financial. Our operating results included a very strong loan growth quarter, as we added over $46 million. From the prior year, our loan book is up nearly $102 million. This growth coincided with a further reduction in our nonperforming assets to 34 basis points.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 10.9 percent from the second quarter of 2017, and up 6.1 percent from the linked quarter.

 

·

Net interest income was up 21.0 percent from the year-ago quarter, and up 9.4 percent from the linked quarter.

 

·

Net interest margin (FTE) was up 41 basis points from the year-ago quarter, and up 28 basis points from the linked quarter.

 

·

Noninterest income was down 4.8 percent from the year-ago quarter, and flat to the linked quarter.

 

Mortgage Loan Business

 

Mortgage loan originations for the second quarter of 2018 were $109.5 million, up $11.7 million, or 11.9 percent, from the year-ago quarter. Total sales of originated loans were $79.2 million, down $0.8 million, or 1.1 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 2018, compared to $2.3 million for the year-ago quarter. The mortgage servicing valuation adjustment for the second quarter 2018 was a negative $0.02 million, compared to a negative adjustment of $0.04 million for the second quarter of 2017. The aggregate servicing valuation impairment ended the quarter at $0.08 million. The mortgage-servicing portfolio at June 30, 2018, was $1.03 billion, up $0.08 billion, or 8.2 percent, from $0.95 billion at June 30, 2017.

 

Mr. Klein noted, “Our residential mortgage business rebounded nicely this quarter. Due to the rate curve, more of our clients chose variable rate products, which drove our portfolio balances higher. We have continued to add origination staff in our growth markets.”

 

Mortgage Banking
($ in thousands)		Jun. 2018				Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017
Mortgage originations		$	109,466			$	58,485			$	72,102			$	89,217			$	97,804
Mortgage sales			79,162				40,589				53,825				76,919				80,038
Mortgage servicing portfolio			1,030,780				1,004,728				994,915				979,251				952,364
Mortgage servicing rights			10,633				10,196				9,907				9,560				9,217
Mortgage servicing revenue:
Loan servicing fees			636				625				617				605				583
OMSR amortization			(367	)			(246	)			(269	)			(343	)			(303	)
Net administrative fees			269				379				348				262				280
OMSR valuation adjustment			(22	)			92				117				(35	)			(39	)
Net loan servicing fees			247				471				465				227				241
Gain on sale of mortgages			2,058				1,100				1,608				2,211				2,063
Mortgage banking revenue, net		$	2,305			$	1,571			$	2,073			$	2,438			$	2,304

 

Noninterest Income and Noninterest Expense

 

SB Financial’s noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales and the sale of Small Business Administration loans (SBA). SBA activity for the quarter consisted of total loan volume of $0.9 million and gains of $0.1 million. Wealth management assets under the Company’s care stood at $407.6 million as of June 30, 2018. For the second quarter of 2018, noninterest income as a percentage of total revenue was 33.5 percent.

 

 

For the second quarter of 2018, noninterest expense (NIE) of $8.6 million was up $0.8 million, or 9.9 percent, compared to the same quarter last year. Compared to the linked quarter, NIE was down less than $0.1 million.

 

Noninterest Income / Noninterest Expense
($ in thousands, except ratios)		Jun. 2018				Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017
Noninterest Income (NII)		$	4,249			$	4,243			$	4,092			$	4,861			$	4,462
NII / Total Revenue			33.5	%			35.5	%			34.8	%			40.1	%			39.1	%
NII / Average Assets			1.8	%			1.9	%			1.9	%			2.3	%			2.1	%
Noninterest Expense (NIE)		$	8,579			$	8,627			$	8,106			$	8,284			$	7,806
Efficiency Ratio			67.7	%			72.2	%			69.0	%			68.3	%			68.3	%
NIE / Average Assets			3.7	%			3.8	%			3.7	%			3.9	%			3.7	%
Net Noninterest Expense			-1.9				-1.9				-1.8				-1.6				-1.6

 

Balance Sheet

 

Total assets as of June 30, 2018, were $944.8 million, up $97.1 million, or 11.5 percent, from a year ago. Total equity as of June 30, 2018, was $125.1 million, up 40.5 percent from a year ago, and comprised 13.2 percent of total assets. Both the equity and total assets reflect the $30 million common capital raise completed in the first quarter of 2018.

 

Total loans held for investment were $753.3 million at June 30, 2018, up $101.7 million, or 15.6 percent, from June 30, 2017. Commercial real estate loans were up $54.2 million, or 18.3 percent, with residential real estate rising $35.6 million, or 25.9 percent.

 

The investment portfolio of $93.7 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 9.9 percent of assets at June 30, 2018, and was down 12.6 percent from the year-ago period. Deposit balances of $752.9 million at June 30, 2018, increased by $45.5 million, or 6.4 percent, since June 30, 2017. Growth from the prior year included $9.0 million in checking and $36.5 million in savings and time deposit balances.

 

 

Mr. Klein stated, “The disciplined efforts of our business development team is evident in the level of loan growth this quarter and compared to the prior year. Expanding our loan portfolio by nearly 16 percent in the last year is a tremendous accomplishment. While SBA production slowed in the quarter, we have originated over $18 million in the last 12 months. We continue to be encouraged by the strength of our loan pipelines. Additionally, we continued to improve asset quality in the quarter, with net charge offs at just 1 basis point and nonperforming assets at 34 basis points.”

 

Loan Balance																						Annual
($ in thousands, except ratios)		Jun. 2018				Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Growth
Commercial		$	115,140			$	107,579			$	102,041			$	104,723			$	107,319			$	7,821
% of Total			15.3	%			15.2	%			14.6	%			15.5	%			16.5	%			7.3	%
Commercial RE			350,266				338,586				332,154				319,764				296,116				54,150
% of Total			46.5	%			47.9	%			47.7	%			47.4	%			45.4	%			18.3	%
Agriculture			52,466				50,266				51,947				51,140				52,107				359
% of Total			7.0	%			7.1	%			7.5	%			7.6	%			8.0	%			0.7	%
Residential RE			172,773				151,820				150,854				141,296				137,214				35,559
% of Total			22.9	%			21.5	%			21.7	%			20.9	%			21.1	%			25.9	%
Consumer & Other			62,640				58,956				59,619				58,152				58,833				3,807
% of Total			8.3	%			8.3	%			8.6	%			8.6	%			9.0	%			6.5	%
Total Loans		$	753,285			$	707,207			$	696,615			$	675,075			$	651,589			$	101,696
Total Growth Percentage																							15.6	%

 

Deposit Balance																						Annual
($ in thousands, except ratios)		Jun. 2018				Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Growth
Non-Int DDA		$	131,125			$	132,919			$	135,592			$	124,840			$	124,213			$	6,912
% of Total			17.4	%			17.8	%			18.6	%			17.4	%			17.6	%			5.6	%
Interest DDA			129,486				137,893				131,079				130,513				127,409				2,077
% of Total			17.2	%			18.4	%			18.0	%			18.2	%			18.0	%			1.6	%
Savings			118,108				116,820				103,267				103,530				104,720				13,388
% of Total			15.7	%			15.6	%			14.2	%			14.4	%			14.8	%			12.8	%
Money Market			151,228				143,679				141,844				140,647				130,987				20,241
% of Total			20.1	%			19.2	%			19.4	%			19.6	%			18.5	%			15.5	%
Certificates			222,932				217,484				217,818				217,277				220,004				2,928
% of Total			29.6	%			29.0	%			29.9	%			30.3	%			31.1	%			1.3	%
Total Deposits		$	752,879			$	748,795			$	729,600			$	716,807			$	707,333			$	45,546
Total Growth Percentage																							6.4	%

 

Asset Quality

 

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting nonperforming assets of $3.2 million as of June 30, 2018, down $0.7 million, or 17.2 percent, from the year-ago quarter. SB Financial’s nonperforming assets to total assets ratio of 0.34 percent is in the top quartile of its 65-bank peer group. The coverage of problem loans by the loan loss allowance was at 264 percent at June 30, 2018, up from 205 percent at June 30, 2017.

 

 

Summary of Nonperforming Assets																						Annual
($ in thousands, except ratios)		Jun. 2018				Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Growth
Commercial & Agriculture		$	33			$	35			$	121			$	125			$	132			$	(99	)
% of Total Com./Ag. loans			0.02	%			0.02	%			0.08	%			0.08	%			0.08	%			-75.0	%
Commercial RE			234				487				1,322				1,029				1,049				(815	)
% of Total CRE loans			0.07	%			0.14	%			0.40	%			0.32	%			0.35	%			-77.7	%
Residential RE			1,634				1,714				1,123				1,074				1,115				519
% of Total Res. RE loans			0.95	%			1.13	%			0.74	%			0.76	%			0.81	%			46.5	%
Consumer & Other			221				85				138				153				154				67
% of Total Con./Oth. loans			0.35	%			0.14	%			0.23	%			0.26	%			0.26	%			43.5	%
Total Nonaccruing Loans			2,122				2,321				2,704				2,381				2,450				(328	)
% of Total loans			0.28	%			0.33	%			0.39	%			0.35	%			0.38	%			-13.4	%
Accruing Restructured Loans			1,101				1,115				1,129				1,258				1,366				(265	)
Total Growth (%)																							-19.4	%
Total Nonaccruing & Restructured Loans		$	3,223			$	3,436			$	3,833			$	3,639			$	3,816			$	(593	)
% of Total loans			0.43	%			0.49	%			0.55	%			0.54	%			0.59	%			-15.5	%
Foreclosed Assets			16				70				26				94				94				(78	)
Total Growth (%)																							-83.0	%
Total Nonperforming Assets		$	3,239			$	3,506			$	3,859			$	3,733			$	3,910			$	(671	)
% of Total assets			0.34	%			0.38	%			0.44	%			0.43	%			0.46	%			-17.2	%

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on July 20, 2018, 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 for the State Bank & Trust Company (State Bank). 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 20 banking centers; 19 in nine Ohio counties and one center in Fort Wayne, Indiana, and 25 full-service ATMs. The Company has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. 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 2018, SB Financial was ranked #72 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)		2018				2018				2017				2017				2017
ASSETS
Cash and due from banks		$	24,413				48,329				26,616				28,258				21,385
Securities available for sale, at fair value			89,911				91,987				82,790				85,304				103,347
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			93,659				95,735				86,538				89,052				107,095
Loans held for sale			7,551				8,893				3,940				7,663				9,437
Loans, net of unearned income			753,285				707,207				696,615				675,075				651,589
Allowance for loan losses			(8,494	)			(8,219	)			(7,930	)			(7,760	)			(7,825	)
Net loans			744,791				698,988				688,685				667,315				643,764
Premises, equipment and software, net			21,683				21,776				21,277				21,271				20,740
Cash surrender value of life insurance			16,656				16,567				16,479				13,692				13,859
Goodwill & other intangibles			16,406				16,409				16,411				16,414				16,417
Foreclosed assets held for sale, net			16				70				26				94				94
Mortgage servicing rights			10,633				10,196				9,907				9,560				9,217
Accrued interest receivable			2,000				1,925				1,825				1,880				1,411
Other assets			6,977				6,753				4,923				5,263				4,249
Total assets		$	944,785				925,641				876,627				860,462				847,668
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	131,125				132,919				135,592				124,840				124,213
Interest bearing demand			129,486				137,893				131,079				130,513				127,409
Savings deposits			118,108				116,820				103,267				103,530				104,720
Money market deposits			151,228				143,679				141,844				140,647				130,987
Time deposits			222,932				217,484				217,818				217,277				220,004
Total deposits			752,879				748,795				729,600				716,807				707,333
Repurchase agreements			18,191				14,505				15,082				11,343				11,175
Advances from Federal Home Loan Bank			26,500				18,500				18,500				20,500				20,500
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			685				633				592				611				563
Other liabilities			11,116				9,999				8,543				9,982				8,756
Total liabilities			819,681				802,742				782,627				769,553				758,637
Equity
Preferred shares			13,983				13,983				13,983				13,983				13,983
Common shares			40,481				40,481				12,569				12,569				12,569
Additional paid-in capital			15,098				15,189				15,405				15,335				15,260
Retained earnings			59,503				57,162				55,439				51,991				49,851
Accumulated other comprehensive income (loss)			(1,240	)			(941	)			(141	)			335				340
Treasury shares			(2,721	)			(2,975	)			(3,255	)			(3,304	)			(2,972	)
Total equity			125,104				122,899				94,000				90,909				89,031
Total liabilities and equity		$	944,785				925,641				876,627				860,462				847,668

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands, except per share & ratios)		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
		2018				2018				2017				2017				2017				2018				2017
Interest income
Loans
Taxable		$	8,968				8,140				8,096				7,653				7,243				17,108				14,043
Nontaxable			36				21				23				21				21				57				41
Securities
Taxable			612				573				514				532				569				1,186				1,030
Nontaxable			115				117				129				132				133				232				266
Total interest income			9,731				8,851				8,762				8,338				7,966				18,583				15,380
Interest expense
Deposits			1,091				975				938				907				863				2,066				1,611
Repurchase Agreements & Other			6				10				2				4				6				16				10
Federal Home Loan Bank advances			110				79				85				86				63				189				149
Trust preferred securities			100				87				83				78				71				188				141
Total interest expense			1,307				1,151				1,108				1,075				1,003				2,459				1,911
Net interest income			8,424				7,700				7,654				7,263				6,963				16,124				13,469
Provision for loan losses			300				300				200				-				200				600				200
Net interest income after provision for loan losses			8,124				7,400				7,454				7,263				6,763				15,524				13,269
Noninterest income
Wealth Management Fees			710				739				718				688				704				1,449				1,371
Customer service fees			675				644				690				674				667				1,319				1,307
Gain on sale of mtg. loans & OMSR's			2,058				1,100				1,608				2,211				2,063				3,158				3,313
Mortgage loan servicing fees, net			247				471				465				227				241				718				624
Gain on sale of non-mortgage loans			150				660				179				294				369				810				799
Data service fees			-				-				179				182				184				-				377
Net gain on sales of securities			-				-				-				119				-				-				-
Gain/(loss) on sale/disposal of assets			60				(39	)			(4	)			8				-				21				2
Other income			349				668				257				458				234				1,017				471
Total non-interest income			4,249				4,243				4,092				4,861				4,462				8,492				8,264
Noninterest expense
Salaries and employee benefits			5,201				4,939				4,749				4,844				4,667				10,140				9,053
Net occupancy expense			561				649				582				566				552				1,209				1,112
Equipment expense			637				829				748				688				683				1,466				1,324
Data processing fees			418				438				363				429				396				856				766
Professional fees			504				419				492				502				417				923				780
Marketing expense			203				221				153				180				206				425				401
Telephone and communication			128				122				113				120				113				250				229
Postage and delivery expense			63				74				118				103				59				137				233
State, local and other taxes			176				186				164				198				170				362				337
Employee expense			220				166				227				242				183				386				328
Other expenses			468				584				397				412				360				1,052				625
Total non-interest expense			8,579				8,627				8,106				8,284				7,806				17,206				15,188
Income before income tax expense			3,794				3,016				3,440				3,840				3,419				6,810				6,345
Income tax expense (benefit)			687				563				(592	)			1,117				1,102				1,250				2,035
Net income		$	3,107				2,453				4,032				2,723				2,317				5,560				4,310
Preferred Share Dividends			244				244				244				244				244				488				488
Net income available to common shares			2,863				2,209				3,788				2,479				2,073				5,072				3,822
Common share data:
Basic earnings per common share		$	0.45				0.40				0.79				0.52				0.43				0.85				0.79
Diluted earnings per common share		$	0.40				0.35				0.64				0.43				0.37				0.75				0.68
Average shares outstanding ($ in thousands):
Basic:			6,489				5,519				4,790				4,797				4,827				5,936				4,839
Diluted:			8,003				7,055				6,329				6,326				6,351				7,454				6,366

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share & ratios)		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
SUMMARY OF OPERATIONS		2018				2018				2017				2017				2017				2018				2017
Net interest income		$	8,424				7,700				7,654				7,263				6,963				16,124				13,469
Tax-equivalent adjustment			40				37				78				79				79				77				158
Tax-equivalent net interest income			8,464				7,737				7,732				7,342				7,042				16,201				13,627
Provision for loan loss			300				300				200				-				200				600				200
Noninterest income			4,249				4,243				4,092				4,861				4,462				8,492				8,264
Total operating revenue			12,673				11,943				11,746				12,124				11,425				24,616				21,733
Noninterest expense			8,579				8,627				8,106				8,284				7,806				17,206				15,188
Pre-tax pre-provision income			4,094				3,316				3,640				3,840				3,619				7,410				6,545
Pretax income			3,794				3,016				3,440				3,840				3,419				6,810				6,345
Net income			3,107				2,453				4,032				2,723				2,317				5,560				4,310
Income available to common shareholders			2,863				2,209				3,788				2,479				2,073				5,072				3,822
PER SHARE INFORMATION:
Basic earnings per share		$	0.45				0.40				0.79				0.52				0.43				0.85				0.79
Diluted earnings per share			0.40				0.35				0.64				0.43				0.37				0.75				0.68
Common dividends			0.080				0.075				0.075				0.070				0.070				0.155				0.135
Book value per common share			15.73				15.49				15.05				14.57				14.22				15.73				14.22
Tangible book value per common share			14.57				14.27				13.27				12.64				12.20				14.57				12.20
Fully converted TBV per common share			13.66				13.42				12.42				11.94				11.60				13.66				11.60
Market price per common share			20.32				18.51				18.49				17.16				16.88				20.32				16.88
Market price per preferred share			19.82				18.20				17.90				16.45				16.89				19.82				16.89
Market price to tangible book value			139.5	%			129.7	%			139.3	%			135.8	%			138.4	%			139.5	%			138.4	%
Market price to trailing 12 month EPS			11.2				10.3				10.6				11.6				11.7				11.2				11.7
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.35	%			1.08	%			1.83	%			1.27	%			1.09	%			1.21	%			1.03	%
Pre-tax pre-provision ROAA			1.78	%			1.46	%			1.65	%			1.79	%			1.70	%			1.61	%			1.56	%
Return on average equity			10.02	%			9.03	%			17.52	%			12.11	%			10.45	%			9.64	%			9.80	%
Return on average tangible equity			13.28	%			12.54	%			26.16	%			18.28	%			15.91	%			13.08	%			14.97	%
Efficiency ratio			67.67	%			72.22	%			68.99	%			68.30	%			68.30	%			69.88	%			69.86	%
Earning asset yield			4.76	%			4.41	%			4.52	%			4.36	%			4.26	%			4.46	%			4.18	%
Cost of interest bearing liabilities			0.80	%			0.71	%			0.69	%			0.68	%			0.64	%			0.75	%			0.62	%
Net interest margin			4.12	%			3.84	%			3.92	%			3.77	%			3.69	%			3.87	%			3.62	%
Tax equivalent effect			0.02	%			0.02	%			0.04	%			0.04	%			0.04	%			0.02	%			0.04	%
Net interest margin, tax equivalent			4.14	%			3.86	%			3.96	%			3.81	%			3.73	%			3.89	%			3.66	%
Non interest income/Average assets			1.84	%			1.87	%			1.86	%			2.27	%			2.09	%			1.85	%			1.97	%
Non interest expense/Average assets			3.72	%			3.81	%			3.68	%			3.87	%			3.66	%			3.74	%			3.62	%
Net noninterest expense/Average assets			1.88	%			1.93	%			1.82	%			1.60	%			1.57	%			1.89	%			1.65	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	54				19				36				75				69				73				120
Recoveries			29				9				5				10				15				38				20
Net charge-offs			25				10				31				65				54				35				100
Nonaccruing loans/ Total loans			0.28	%			0.33	%			0.39	%			0.35	%			0.38	%			0.28	%			0.38	%
Nonperforming loans/ Total loans			0.43	%			0.49	%			0.55	%			0.54	%			0.59	%			0.43	%			0.59	%
Nonperforming assets/ Loans & OREO			0.43	%			0.50	%			0.55	%			0.55	%			0.60	%			0.43	%			0.60	%
Nonperforming assets/ Total assets			0.34	%			0.38	%			0.44	%			0.43	%			0.46	%			0.34	%			0.46	%
Allowance for loan loss/ Nonperforming loans			263.54	%			239.20	%			206.89	%			213.25	%			205.06	%			263.54	%			205.06	%
Allowance for loan loss/ Total loans			1.13	%			1.16	%			1.14	%			1.15	%			1.20	%			1.13	%			1.20	%
Net loan charge-offs/ Average loans (ann.)			0.01	%			0.01	%			0.02	%			0.04	%			0.03	%			0.01	%			0.03	%
Loan loss provision/ Net charge-offs			1200.00	%			3000.00	%			645.16	%			0.00	%			370.37	%			1714.29	%			200.00	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			100.05	%			94.45	%			95.48	%			94.18	%			92.12	%			100.05	%			92.12	%
Equity/ Assets			13.24	%			13.28	%			10.72	%			10.57	%			10.50	%			13.24	%			10.50	%
Tangible equity/ Tangible assets			10.20	%			10.17	%			7.39	%			7.17	%			7.05	%			10.20	%			7.05	%
Tangible equity adjusted for conversion			11.71	%			11.71	%			9.02	%			8.83	%			8.74	%			11.71	%			8.74	%
Common equity tier 1 ratio (Bank) - 6/18 est.			12.50	%			12.23	%			10.53	%			10.39	%			10.34	%			12.50	%			10.34	%
END OF PERIOD BALANCES
Total assets		$	944,785				925,641				876,627				860,462				847,668				944,785				847,668
Total loans			753,285				707,207				696,615				675,075				651,589				753,285				651,589
Deposits			752,879				748,795				729,600				716,807				707,333				752,879				707,333
Stockholders equity			125,104				122,899				94,000				90,909				89,031				125,104				89,031
Goodwill & intangibles			16,406				16,409				16,411				16,414				16,417				16,406				16,417
Preferred equity			13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity			94,715				92,507				63,606				60,512				58,631				94,715				58,631
Mortgage servicing portfolio			1,030,780				1,004,728				994,915				979,251				952,364				1,030,780				952,364
Wealth/Brokerage assets under care			407,592				411,654				437,034				429,777				407,268				407,592				407,268
Total assets under care			2,383,157				2,342,023				2,308,576				2,269,490				2,207,300				2,383,157				2,207,300
Full-time equivalent employees (actual)			241				240				240				237				237				241				237
Period end basic shares outstanding			6,502				6,483				4,793				4,788				4,807				6,502				4,807
Period end outstanding (Series A Converted)			1,453				1,453				1,453				1,452				1,452				1,453				1,452
AVERAGE BALANCES
Total assets		$	922,355				906,281				880,446				857,147				852,526				920,024				840,044
Total earning assets			817,270				802,358				781,795				771,722				754,736				832,849				743,703
Total loans			724,710				711,733				691,929				667,943				644,658				737,544				641,094
Deposits			739,877				738,867				731,992				712,614				717,472				745,231				700,598
Stockholders equity			123,990				108,662				92,036				89,974				88,637				115,387				87,985
Intangibles			16,407				16,410				16,412				16,415				16,418				16,409				16,419
Preferred equity			13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity			93,600				78,269				61,641				59,576				58,236				84,995				57,583
Average basic shares outstanding			6,489				5,519				4,790				4,797				4,827				5,936				4,839
Average diluted shares outstanding			8,003				7,055				6,329				6,326				6,351				7,454				6,366

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended June 30, 2018 and 2017

 

($ in thousands)		Three Months Ended Jun. 30, 2018												Three Months Ended Jun. 30, 2017
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	80,610				612				3.04	%		$	95,748				569				2.38	%
Nontaxable securities			11,950				115				3.85	%			14,330				133				3.69	%
Loans, net			724,710				9,004				4.97	%			644,658				7,264				4.51	%
Total earning assets			817,270				9,731				4.76	%			754,736				7,966				4.22	%
Cash and due from banks			32,930												38,905
Allowance for loan losses			(8,178	)											(7,756	)
Premises and equipment			21,476												21,062
Other assets			58,857												45,579
Total assets		$	922,355											$	852,526
Liabilities
Savings and interest bearing demand		$	393,507				303				0.31	%		$	371,352				194				0.21	%
Time deposits			214,928				788				1.47	%			219,716				669				1.22	%
Repurchase agreements & Other			15,646				6				0.15	%			9,728				6				0.25	%
Advances from Federal Home Loan Bank			20,655				110				2.13	%			15,995				63				1.58	%
Trust preferred securities			10,310				100				3.88	%			10,310				71				2.75	%
Total interest bearing liabilities			655,046				1,307				0.80	%			627,101				1,003				0.64	%
Non interest bearing demand			131,442				-								126,404				-
Total funding			786,488								0.66	%			753,505								0.53	%
Other liabilities			11,877												10,384
Total liabilities			798,365												763,889
Equity			123,990								559,131				88,637
Total liabilities and equity		$	922,355											$	852,526
Net interest income						$	8,424											$	6,963
Net interest income as a percent of average interest-earning assets - GAAP measure											4.12	%											3.69	%
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis											4.14	%											3.73	%

 

 

		Six Months Ended Jun. 30, 2018												Six Months Ended Jun. 30, 2017
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	83,225				1,186				2.85	%		$	88,363				1,030				2.33	%
Nontaxable securities			12,080				232				3.84	%			14,246				266				3.73	%
Loans, net			737,544				17,165				4.65	%			641,094				14,084				4.39	%
Total earning assets			832,849				18,583				4.46	%			743,703				15,380				4.14	%
Cash and due from banks			27,773												38,285
Allowance for loan losses			(8,311	)											(7,778	)
Premises and equipment			21,855												20,829
Other assets			45,858												45,005
Total assets		$	920,024											$	840,044
Liabilities
Savings and interest bearing demand		$	393,384				559				0.28	%		$	364,982				366				0.20	%
Time deposits			215,208				1,507				1.40	%			211,460				1,245				1.18	%
Repurchase agreements & Other			13,196				16				0.24	%			11,753				10				0.17	%
Advances from Federal Home Loan Bank			22,786				189				1.66	%			19,464				149				1.53	%
Trust preferred securities			10,310				188				3.65	%			10,310				141				2.74	%
Total interest bearing liabilities			654,884				2,459				0.75	%			617,969				1,911				0.62	%
Non interest bearing demand			136,639								0.62	%			124,156								0.52	%
Total funding			791,523												742,125
Other liabilities			13,114												9,934
Total liabilities			804,637												752,059
Equity			115,387												87,985
Total liabilities and equity		$	920,024											$	840,044
Net interest income						$	16,124											$	13,469
Net interest income as a percent of average interest-earning assets - GAAP measure											3.87	%											3.62	%
Net interest income as a percent of average interest-earning assets - non GAAP											3.89	%											3.66	%
- Computed on a fully tax equivalent (FTE) basis