Attached files
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| 8-K - CURRENT REPORT - SB FINANCIAL GROUP, INC. | f8k012114_sbfinancial.htm |
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 Fourth-Quarter and Full-Year 2013 Results
Sees continued progress in expense reductions and gains in asset quality
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·
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Full-year EPS rises 8.1 percent to $1.07 from 99 cents in 2012; fourth-quarter EPS lower on slowing mortgage origination environment
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·
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Operating expense down 14.1 percent year over year; down 3.5 percent year-to-date
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·
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Nonperforming assets declined to 1.1 percent of total assets; down 19.0 percent from year-end 2012
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·
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Return on assets at 81 basis points and return on equity at 9.5 percent for full-year 2013
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DEFIANCE, Ohio, January 21, 2014 -- SB Financial Group, Inc. (NASDAQ: SBFG), a diversified financial services company providing full-service community banking, mortgage banking, wealth management and item processing services, today reported earnings for the fourth-quarter and full-year ended December 31, 2013.
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Highlights*
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Three Months Ended
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Full Year
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(in $000’s except ratios and per share data)
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Dec. 2013
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Dec. 2012
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2013
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2012
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Net interest income (FTE)
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$ | 5,096 | $ | 5,247 | $ | 21,210 | $ | 21,091 | ||||||||
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Noninterest income
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2,949 | 4,648 | 14,046 | 14,845 | ||||||||||||
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Noninterest expense
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6,199 | 7,212 | 26,511 | 27,484 | ||||||||||||
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Net income
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1,224 | 1,524 | 5,205 | 4,814 | ||||||||||||
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Earnings per share
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0.25 | 0.31 | 1.07 | 0.99 | ||||||||||||
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Net interest margin (FTE)
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3.57 | % | 3.72 | % | 3.75 | % | 3.76 | % | ||||||||
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Return on assets
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0.76 | 0.95 | 0.81 | 0.75 | ||||||||||||
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Return on equity
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8.75 | 11.64 | 9.52 | 9.57 | ||||||||||||
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*Consolidated earnings for SB Financial include the results of the Company’s Banking Group, consisting primarily of The State Bank and Trust Company (“State Bank” or the “Bank”), and the Company’s data services subsidiary, Rurbanc Data Services, Inc. (dba “RDSI Banking Systems” or “RDSI”).
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“Overall, we are pleased with our 2013 financial results, which reflect a year of steady progress for SB Financial Group. We are even more pleased with our solid positioning as we enter 2014,” said Mark Klein, President and CEO of SB Financial Group. “In the past 12 months, the Company accomplished a number of important initiatives, including rebranding the Company as SB Financial Group and strategically focusing our business efforts on our core banking competencies.”
1
Mr. Klein added, “We continue to make significant progress in the execution of our strategic plan -- diversifying our sources of revenue, expanding our loan portfolio, reducing our expenses and improving our asset quality. The Board expressed its confidence in management’s long-term strategy for the Company by reinstating a dividend in the first quarter of 2013. We continue to believe our strategic plan will allow us to become a top-quartile performing financial services company in the coming years.”
RESULTS OF OPERATIONS
Consolidated Revenue
Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was down 18.7 percent from the fourth quarter of 2012 and 1.9 percent for the full year.
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Net interest income (FTE) was down 2.9 percent for the fourth quarter and up 0.1 percent for the full year
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Net interest margin (FTE) was down 15 basis points for the fourth quarter and flat for the full year
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Noninterest income was down $1.7 million, or 36.6 percent, for the fourth quarter, and $0.8 million, or 5.4 percent, for the full year
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Mr. Klein commented, “Two significant external factors affected revenue in 2013. The first was the decline in yields on the loan portfolio, reflecting the general interest rate environment, which was partially offset by lower funding costs. Secondly, mortgage originations declined across the country as the year progressed, largely due to the increase in prevailing interest rates and the shift away from a ‘refinance’ mindset. In the fourth quarter, SB Financial had a 28.1 percent decline in mortgage originations from the linked quarter. Despite the shift in the refinance market, we continue to be successful in acquiring market share from competitors that are stepping away from mortgage origination.”
Mortgage Loan Business
Mortgage loan originations declined $53.9 million, or 57.6 percent, for the fourth quarter, and declined $83.8 million, or 25.2 percent, for the year.
Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $6.3 million for 2013, compared to $6.4 million for 2012. The mortgage servicing valuation adjustment for 2013 was ($0.02) million, compared to $0.2 million for the linked quarter. The mortgage servicing portfolio at year-end 2013 was $606.0 million, up $77.9 million, or 14.8 percent, from year-end 2012.
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Three Months Ended
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Mortgage Banking ($000’s)
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Dec. 2013
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Sep. 2013
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Jun. 2013
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Mar. 2013
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Dec. 2012
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Mortgage originations
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$ | 39,679 | $ | 55,192 | $ | 81,945 | $ | 71,967 | $ | 93,619 | ||||||||||
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Mortgage sales
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33,921 | 58,101 | 67,050 | 68,431 | 93,993 | |||||||||||||||
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Mortgage servicing portfolio
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605,993 | 597,030 | 575,091 | 548,493 | 528,086 | |||||||||||||||
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Mortgage servicing rights
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5,180 | 5,076 | 4,613 | 4,068 | 3,775 | |||||||||||||||
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Mortgage servicing revenue:
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Loan servicing fees
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388 | 367 | 350 | 338 | 319 | |||||||||||||||
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OMSR amortization
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(126 | ) | (164 | ) | (205 | ) | (330 | ) | (362 | ) | ||||||||||
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Net administrative fees
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262 | 203 | 145 | 8 | (43 | ) | ||||||||||||||
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OMSR valuation adjustment
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(21 | ) | 205 | 273 | 171 | 195 | ||||||||||||||
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Net loan servicing fees
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241 | 408 | 418 | 179 | 152 | |||||||||||||||
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Gain on sale of mortgages
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776 | 1,356 | 1,450 | 1,484 | 2,136 | |||||||||||||||
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Mortgage banking revenue, net
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$ | 1,017 | $ | 1,764 | $ | 1,868 | $ | 1,663 | $ | 2,288 | ||||||||||
2
Fee Income
SB Financial’s fee income includes revenue from a diversity of services, such as wealth management, deposit fees and income from bank-owned life insurance. Wealth management increased by 13.7 percent for the fourth quarter as assets under management, which stood at $345.5 million at year-end 2013, grew by $30.3 million, or 9.6 percent, from year-end 2012. Full-year wealth management revenue rose by $0.15 million, or 6.1 percent.
Gross revenue generated by RDSI, including services provided to SB Financial and State Bank, was $2.3 million for 2013. Net data services fees, excluding SB Financial and State Bank intercompany transactions, were $1.5 million in 2013, down $1.0 million from 2012.
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Data Services ($000’s)
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Dec. 2013
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Sep. 2013
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Jun. 2013
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Mar. 2013
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Dec. 2012
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Data Processing & Network Services
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$ | - | $ | 104 | $ | 207 | $ | 270 | $ | 179 | ||||||||||
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Payment Solutions
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376 | 403 | 493 | 484 | 549 | |||||||||||||||
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Vendor Settlement
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- | - | - | - | 334 | |||||||||||||||
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RDSI Gross Revenue
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376 | 507 | 700 | 754 | 1,062 | |||||||||||||||
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Less: Intercompany
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(81 | ) | (174 | ) | (242 | ) | (340 | ) | (251 | ) | ||||||||||
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Net Data Services Fees
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$ | 295 | $ | 333 | $ | 458 | $ | 414 | $ | 811 | ||||||||||
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Core Data Service Fees
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$ | 295 | $ | 333 | $ | 458 | $ | 414 | $ | 477 | ||||||||||
Loan Loss Provision
The loan loss provision was immaterial in the fourth quarter of 2013 and $0.9 million for the full year. Asset quality metrics included a 19.0 percent decline in non-accruing and restructured loans, and a 30.1 percent reduction in full-year net charge-offs compared with 2012. The loan loss reserve at year-end 2013 was 1.5 percent of total loans, providing 105.8 percent coverage of nonperforming loans; this compares to reserve coverage of 103.8 percent at year-end 2012.
Noninterest Expense
For the fourth quarter of 2013, noninterest expense was down $1.0 million, or 14.1 percent, compared to the fourth quarter of 2012 and was down 3.5 percent for the full year. FDIC insurance premiums were down 34.9 percent, a reflection of State Bank’s improved risk profile.
“We made a number of strategic decisions during the past year to reduce our expense levels. We had closed a branch, made changes to our benefit programs and implemented several efficiency measures. We expect these changes should continue to improve our profitability going forward.” stated Mr. Klein.
Balance Sheet
Total assets as of December 31, 2013, were $631.8 million, down 1.0 percent from year-end 2012. Total deposits as of December 31, 2013, were $518.2 million, down 1.7 percent from year-end 2012.
Total loans held for investment (HFI) were $477.3 million at December 31, 2013, up 3.0 percent from year-end 2012. Residential real estate loans accounted for the majority of growth, up $11.8 million, or 13.4 percent. Commercial and commercial real estate loans rose $7.8 million, or 2.8 percent, for the full year.
3
Mr. Klein stated, “We are pleased with our loan growth over the past year, and we are encouraged by the additional opportunities we are seeing across our markets. We believe that as a regionally focused bank we are well positioned to capture successfully these new business opportunities. In particular, our commercial loan growth rose in the latter part of the year, as we continued to focus on targeted marketing efforts. Approximately $3.8 million of the full-year growth in commercial loans came in the fourth quarter.”
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Loan Portfolio ($000’s)
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Dec. 2013
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Sep. 2013
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Jun. 2013
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Mar. 2013
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Dec. 2012
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Variance YOY
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Commercial
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$ | 85,368 | $ | 81,571 | $ | 84,766 | $ | 80,431 | $ | 81,491 | $ | 3,877 | ||||||||||||
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% of Total
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17.9 | % | 17.2 | % | 18.3 | % | 17.7 | % | 17.6 | % | 4.8 | % | ||||||||||||
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Commercial RE
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205,301 | 209,739 | 199,795 | 199,615 | 201,392 | 3,909 | ||||||||||||||||||
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% of Total
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43.0 | % | 44.1 | % | 43.1 | % | 43.8 | % | 43.5 | % | 1.9 | % | ||||||||||||
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Agriculture
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39,210 | 39,636 | 38,552 | 37,950 | 42,276 | (3,066 | ) | |||||||||||||||||
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% of Total
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8.2 | % | 8.3 | % | 8.3 | % | 8.3 | % | 9.1 | % | (7.3 | %) | ||||||||||||
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Residential RE
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99,620 | 96,477 | 93,292 | 89,669 | 87,859 | 11,761 | ||||||||||||||||||
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% of Total
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20.9 | % | 20.3 | % | 20.1 | % | 19.7 | % | 19.0 | % | 13.4 | % | ||||||||||||
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Consumer & Other
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47,804 | 47,810 | 47,630 | 47,778 | 50,371 | (2,567 | ) | |||||||||||||||||
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% of Total
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10.0 | % | 10.1 | % | 10.3 | % | 10.5 | % | 10.9 | % | (5.1 | %) | ||||||||||||
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Total Loans
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$ | 477,303 | $ | 475,233 | $ | 464,035 | $ | 455,443 | $ | 463,389 | $ | 13,914 | ||||||||||||
| Total Growth Percentage | 3.0 |
%
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Asset Quality
SB Financial continues to improve its asset quality, reporting nonperforming assets of $7.2 million at year-end 2013, declining by $1.7 million, or 19.0 percent, from year-end 2012. Delinquency levels have declined, with the 30-89 day category totaling $0.9 million at the end of the 2013, compared to $2.6 million at year-end 2012.
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Summary of Nonperforming Assets ($000’s)
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Nonperforming Loan Category
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Dec. 2013
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Sep. 2013
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Jun. 2013
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Mar. 2013
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Dec. 2012
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Commercial
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$ | 2,316 | $ | 2,738 | $ | 982 | $ | 1,135 | $ | 1,246 | ||||||||||
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% of Total Commercial loans
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2.7 | % | 3.4 | % | 1.2 | % | 1.4 | % | 1.5 | % | ||||||||||
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Commercial RE loans
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532 | 642 | 519 | 457 | 782 | |||||||||||||||
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% of Total CRE loans
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0.3 | % | 0.3 | % | 0.3 | % | 0.2 | % | 0.4 | % | ||||||||||
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Agriculture
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- | - | - | - | - | |||||||||||||||
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% of Total Ag loans
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- | - | - | - | - | |||||||||||||||
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Residential RE
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1,651 | 1,837 | 2,285 | 2,614 | 2,631 | |||||||||||||||
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% of Total Res. RE loans
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1.7 | % | 1.9 | % | 2.5 | % | 2.9 | % | 3.0 | % | ||||||||||
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Consumer & Other
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345 | 363 | 600 | 605 | 646 | |||||||||||||||
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% of Consumer & Other loans
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0.7 | % | 0.8 | % | 1.3 | % | 1.3 | % | 1.3 | % | ||||||||||
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Total Nonaccruing Loans
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4,844 | 5,580 | 4,386 | 4,811 | 5,305 | |||||||||||||||
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% of Total Loans
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1.0 | % | 1.2 | % | 1.0 | % | 1.0 | % | 1.1 | % | ||||||||||
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Accruing Restructured Loans
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1,739 | 1,756 | 1,262 | 1,273 | 1,258 | |||||||||||||||
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Total Nonaccruing & Restructured
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$ | 6,583 | $ | 7,336 | $ | 5,648 | $ | 6,084 | $ | 6,563 | ||||||||||
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% of Total Loans
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1.4 | % | 1.5 | % | 1.2 | % | 1.3 | % | 1.4 | % | ||||||||||
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OREO & Repossessed Vehicles
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651 | 1,430 | 1,955 | 2,270 | 2,367 | |||||||||||||||
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Total Nonperforming Assets
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$ | 7,233 | $ | 8,766 | $ | 7,603 | $ | 8,354 | $ | 8,930 | ||||||||||
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% of Total Assets
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1.1 | % | 1.4 | % | 1.2 | % | 1.3 | % | 1.4 | % | ||||||||||
4
Capitalization
Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 63 basis points over the past year and stood at 6.3 percent as of December 31, 2013. All bank regulatory ratios remain in excess of "well-capitalized" levels. At December 31, 2013, State Bank's Total Risk-Based Capital was estimated to be $60.8 million, $22.0 million above the “well-capitalized” level. The Total Risk-Based Capital Ratio is estimated at 12.6 percent.
About SB Financial Group
Based in Defiance, Ohio, SB Financial Group, Inc. is a financial services holding company with two wholly-owned operating subsidiaries: State Bank and RDSI Banking Systems (RDSI). State Bank operates through 17 banking centers in seven Northwestern Ohio counties, and one banking center in Fort Wayne, Indiana; and three loan production offices: two in Columbus, Ohio and one in Angola, Indiana. State Bank offers a full range of financial services for consumers and small businesses, including wealth management, mortgage banking, commercial and agricultural lending. RDSI provides item processing services to community banks located in the Midwest. The Company’s common stock is listed on the NASDAQ Global Market under the symbol SBFG.
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, insurance and mortgage industries, competitive factors specific to markets in which SB Financial Group and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors. Additional factors that could cause results to differ from those described above can be found in the Company’s Annual Report on Form 10-K and documents subsequently filed by SB Financial Group with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial Group 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 Group 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 providing certain non-GAAP financial measures provides investors with information useful in understanding the Company’s financial performance, its performance trends and financial position. Specifically, SB Financial Group provides measures based on “core operating earnings,” which excludes merger, integration and restructuring expenses that are not reflective of on-going operations or not expected to recur. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.
5
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SB FINANCIAL GROUP, INC. & SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS - (Unaudited)
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December
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September
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June
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March
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December
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($ in Thousands)
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2013
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2013
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2013
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2013
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2012
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ASSETS
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Cash and due from banks
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$ | 13,137 | $ | 19,016 | $ | 10,750 | $ | 28,031 | $ | 19,144 | ||||||||||
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Securities available for sale, at fair value
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89,793 | 86,620 | 95,379 | 98,390 | 98,702 | |||||||||||||||
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Other securities - FRB and FHLB Stock
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3,748 | 3,748 | 3,748 | 3,748 | 3,748 | |||||||||||||||
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Total investment securities
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93,541 | 90,368 | 99,127 | 102,138 | 102,450 | |||||||||||||||
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Loans held for sale
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3,366 | 2,407 | 10,715 | 8,560 | 6,147 | |||||||||||||||
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Loans, net of unearned income
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477,303 | 475,233 | 464,035 | 455,443 | 463,389 | |||||||||||||||
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Allowance for loan losses
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(6,964 | ) | (7,120 | ) | (7,013 | ) | (6,992 | ) | (6,811 | ) | ||||||||||
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Net loans
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470,339 | 468,113 | 457,022 | 448,451 | 456,578 | |||||||||||||||
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Premises and equipment, net
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12,213 | 12,399 | 12,483 | 12,738 | 12,633 | |||||||||||||||
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Purchased software
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394 | 320 | 289 | 300 | 330 | |||||||||||||||
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Cash surrender value of life insurance
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12,906 | 12,826 | 12,742 | 12,659 | 12,577 | |||||||||||||||
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Goodwill
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16,353 | 16,353 | 16,353 | 16,353 | 16,353 | |||||||||||||||
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Core deposits and other intangibles
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655 | 784 | 913 | 1,066 | 1,219 | |||||||||||||||
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Foreclosed assets held for sale, net
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651 | 1,430 | 1,955 | 2,270 | 2,367 | |||||||||||||||
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Mortgage servicing rights
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5,180 | 5,076 | 4,613 | 4,068 | 3,775 | |||||||||||||||
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Accrued interest receivable
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1,281 | 1,694 | 1,575 | 1,618 | 1,235 | |||||||||||||||
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Other assets
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1,738 | 2,626 | 2,955 | 3,048 | 3,426 | |||||||||||||||
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Total assets
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$ | 631,754 | $ | 633,412 | $ | 631,492 | $ | 641,300 | $ | 638,234 | ||||||||||
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LIABILITIES AND EQUITY
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Deposits
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Non interest bearing demand
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$ | 81,570 | $ | 78,217 | $ | 76,355 | $ | 79,579 | $ | 77,799 | ||||||||||
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Interest bearing demand
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119,551 | 124,860 | 118,957 | 123,748 | 117,289 | |||||||||||||||
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Savings
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61,652 | 61,899 | 61,513 | 62,404 | 57,461 | |||||||||||||||
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Money market
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79,902 | 78,406 | 78,487 | 81,130 | 80,381 | |||||||||||||||
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Time deposits
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175,559 | 178,161 | 176,066 | 185,398 | 194,071 | |||||||||||||||
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Total deposits
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518,234 | 521,543 | 511,378 | 532,259 | 527,001 | |||||||||||||||
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Notes payable
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589 | 680 | 1,148 | 1,424 | 1,702 | |||||||||||||||
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Advances from Federal Home Loan Bank
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16,000 | 16,000 | 30,000 | 17,500 | 21,000 | |||||||||||||||
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Repurchase agreements
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14,696 | 14,836 | 9,314 | 10,983 | 10,333 | |||||||||||||||
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Trust preferred securities
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20,620 | 20,620 | 20,620 | 20,620 | 20,620 | |||||||||||||||
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Accrued interest payable
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639 | 448 | 715 | 515 | 138 | |||||||||||||||
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Other liabilities
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4,707 | 3,748 | 3,930 | 3,704 | 4,156 | |||||||||||||||
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Total liabilities
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575,485 | 577,875 | 577,105 | 587,005 | 584,950 | |||||||||||||||
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Equity
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Preferred stock
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- | - | - | - | - | |||||||||||||||
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Common stock
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12,569 | 12,569 | 12,569 | 12,569 | 12,569 | |||||||||||||||
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Additional paid-in capital
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15,412 | 15,399 | 15,392 | 15,381 | 15,374 | |||||||||||||||
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Retained earnings
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29,899 | 28,846 | 27,648 | 26,476 | 25,280 | |||||||||||||||
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Accumulated other comprehensive income
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74 | 415 | 496 | 1,623 | 1,830 | |||||||||||||||
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Treasury stock
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(1,685 | ) | (1,692 | ) | (1,718 | ) | (1,754 | ) | (1,769 | ) | ||||||||||
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Total equity
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56,269 | 55,537 | 54,387 | 54,295 | 53,284 | |||||||||||||||
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Total liabilities and equity
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$ | 631,754 | $ | 633,412 | $ | 631,492 | $ | 641,300 | $ | 638,234 | ||||||||||
6
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SB FINANCIAL GROUP, INC.
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CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
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($ in thousands, except share data)
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Three Months Ended
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Twelve Months Ended
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December
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September
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June
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March
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December
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December
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December
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Interest income
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2013
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2013
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2013
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2013
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2012
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2013
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2012
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Loans
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Taxable
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$ | 5,428 | 5,649 | 5,874 | $ | 5,883 | $ | 5,840 | $ | 22,834 | $ | 23,911 | ||||||||||||||||
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Nontaxable
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13 | 14 | 16 | 24 | 22 | 67 | 90 | |||||||||||||||||||||
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Securities
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Taxable
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313 | 305 | 296 | 330 | 330 | 1,244 | 1,515 | |||||||||||||||||||||
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Nontaxable
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181 | 178 | 174 | 170 | 157 | 703 | 606 | |||||||||||||||||||||
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Total interest income
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5,935 | 6,146 | 6,360 | 6,407 | 6,349 | 24,848 | 26,122 | |||||||||||||||||||||
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Interest expense
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Deposits
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513 | 539 | 573 | 606 | 653 | 2,231 | 2,969 | |||||||||||||||||||||
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Other borrowings
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10 | 11 | 12 | 14 | 15 | 47 | 64 | |||||||||||||||||||||
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Repurchase Agreements
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4 | 2 | 3 | 2 | 3 | 11 | 142 | |||||||||||||||||||||
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Federal Home Loan Bank advances
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82 | 83 | 84 | 90 | 92 | 339 | 333 | |||||||||||||||||||||
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Trust preferred securities
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330 | 336 | 338 | 403 | 431 | 1,407 | 1,882 | |||||||||||||||||||||
|
Total interest expense
|
939 | 971 | 1,010 | 1,115 | 1,194 | 4,035 | 5,390 | |||||||||||||||||||||
|
Net interest income
|
4,996 | 5,175 | 5,350 | 5,292 | 5,155 | 20,813 | 20,732 | |||||||||||||||||||||
|
Provision for loan losses
|
- | 401 | 200 | 299 | 400 | 900 | 1,350 | |||||||||||||||||||||
|
Net interest income after provision
|
||||||||||||||||||||||||||||
|
for loan losses
|
4,996 | 4,774 | 5,150 | 4,993 | 4,755 | 19,913 | 19,382 | |||||||||||||||||||||
|
Noninterest income
|
||||||||||||||||||||||||||||
|
Wealth Management Fees
|
689 | 669 | 652 | 643 | 606 | 2,653 | 2,501 | |||||||||||||||||||||
|
Customer service fees
|
673 | 659 | 639 | 616 | 648 | 2,587 | 2,624 | |||||||||||||||||||||
|
Gain on sale of mtg. loans & OMSR's
|
776 | 1,356 | 1,450 | 1,484 | 2,136 | 5,066 | 6,284 | |||||||||||||||||||||
|
Mortgage loan servicing fees, net
|
241 | 408 | 418 | 179 | 152 | 1,246 | 124 | |||||||||||||||||||||
|
Gain on sale of non-mortgage loans
|
303 | 44 | 82 | 156 | 94 | 585 | 264 | |||||||||||||||||||||
|
Data service fees
|
295 | 333 | 458 | 414 | 811 | 1,500 | 2,515 | |||||||||||||||||||||
|
Net gain on sales of securities
|
- | 28 | - | 20 | - | 48 | - | |||||||||||||||||||||
|
Gain/(loss) on sale/disposal of assets
|
(265 | ) | 15 | (129 | ) | (105 | ) | (54 | ) | (484 | ) | (311 | ) | |||||||||||||||
|
Other income
|
237 | 198 | 250 | 160 | 255 | 845 | 844 | |||||||||||||||||||||
|
Total non-interest income
|
2,949 | 3,710 | 3,820 | 3,567 | 4,648 | 14,046 | 14,845 | |||||||||||||||||||||
|
Noninterest expense
|
||||||||||||||||||||||||||||
|
Salaries and employee benefits
|
3,027 | 3,343 | 3,688 | 3,439 | 3,825 | 13,497 | 14,518 | |||||||||||||||||||||
|
Net occupancy expense
|
494 | 507 | 513 | 541 | 494 | 2,055 | 2,085 | |||||||||||||||||||||
|
Equipment expense
|
651 | 701 | 703 | 755 | 692 | 2,810 | 2,837 | |||||||||||||||||||||
|
FDIC insurance expense
|
108 | 98 | 94 | 109 | 100 | 409 | 628 | |||||||||||||||||||||
|
Fixed asset and software impairment
|
- | - | - | - | 65 | - | 65 | |||||||||||||||||||||
|
Data processing fees
|
254 | 189 | 194 | 77 | 132 | 714 | 469 | |||||||||||||||||||||
|
Professional fees
|
443 | 456 | 499 | 429 | 686 | 1,827 | 1,912 | |||||||||||||||||||||
|
Marketing expense
|
136 | 135 | 92 | 108 | 115 | 471 | 393 | |||||||||||||||||||||
|
Printing and office supplies
|
55 | 49 | 151 | 46 | 46 | 301 | 230 | |||||||||||||||||||||
|
Telephone and communication
|
110 | 156 | 158 | 158 | 146 | 582 | 580 | |||||||||||||||||||||
|
Postage and delivery expense
|
173 | 199 | 209 | 215 | 204 | 796 | 856 | |||||||||||||||||||||
|
State, local and other taxes
|
138 | 140 | 138 | 134 | 136 | 550 | 502 | |||||||||||||||||||||
|
Employee expense
|
154 | 125 | 126 | 152 | 113 | 557 | 456 | |||||||||||||||||||||
|
Intangible amortization expense
|
129 | 129 | 153 | 153 | 158 | 564 | 630 | |||||||||||||||||||||
|
OREO Impairment
|
- | - | - | 33 | - | 33 | 58 | |||||||||||||||||||||
|
Other expenses
|
327 | 335 | 362 | 321 | 300 | 1,345 | 1,265 | |||||||||||||||||||||
|
Total non-interest expense
|
6,199 | 6,562 | 7,080 | 6,670 | 7,212 | 26,511 | 27,484 | |||||||||||||||||||||
|
Income before income tax expense
|
1,746 | 1,922 | 1,890 | 1,890 | 2,191 | 7,448 | 6,743 | |||||||||||||||||||||
|
Income tax expense
|
522 | 578 | 571 | 572 | 667 | 2,243 | 1,929 | |||||||||||||||||||||
|
Net income
|
$ | 1,224 | 1,344 | 1,319 | $ | 1,318 | $ | 1,524 | $ | 5,205 | $ | 4,814 | ||||||||||||||||
|
Common share data:
|
||||||||||||||||||||||||||||
|
Basic earnings per common share
|
$ | 0.25 | 0.28 | 0.27 | $ | 0.27 | $ | 0.31 | $ | 1.07 | $ | 0.99 | ||||||||||||||||
|
Diluted earnings per common share
|
$ | 0.25 | 0.28 | 0.27 | $ | 0.27 | $ | 0.31 | $ | 1.07 | $ | 0.99 | ||||||||||||||||
|
Average shares outstanding ($ in thousands):
|
||||||||||||||||||||||||||||
|
Basic:
|
4,870 | 4,867 | 4,866 | 4,863 | 4,862 | 4,866 | 4,862 | |||||||||||||||||||||
|
Diluted:
|
4,882 | 4,881 | 4,870 | 4,870 | 4,862 | 4,878 | 4,862 | |||||||||||||||||||||
7
|
SB FINANCIAL GROUP, INC.
|
||||||||||||||||||||||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
|
||||||||||||||||||||||||||||
|
($ in thousands, except per share data)
|
Three Months Ended
|
Twelve Months Ended
|
||||||||||||||||||||||||||
|
December
|
September
|
June
|
March
|
December
|
December
|
December
|
||||||||||||||||||||||
|
SUMMARY OF OPERATIONS
|
2013
|
2013
|
2013
|
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||||
|
Net interest income
|
$ | 4,996 | 5,175 | 5,350 | 5,292 | 5,155 | 20,813 | 20,732 | ||||||||||||||||||||
|
Tax-equivalent adjustment
|
$ | 100 | 99 | 98 | 100 | 92 | 397 | 359 | ||||||||||||||||||||
|
Tax-equivalent net interest income
|
$ | 5,096 | 5,274 | 5,448 | 5,392 | 5,247 | 21,210 | 21,091 | ||||||||||||||||||||
|
Provision for loan loss
|
$ | - | 401 | 200 | 299 | 400 | 900 | 1,350 | ||||||||||||||||||||
|
Noninterest income
|
$ | 2,949 | 3,710 | 3,820 | 3,567 | 4,648 | 14,046 | 14,845 | ||||||||||||||||||||
|
Total revenue, tax-equivalent
|
$ | 8,045 | 8,984 | 9,268 | 8,959 | 9,895 | 35,256 | 35,936 | ||||||||||||||||||||
|
Noninterest expense
|
$ | 6,199 | 6,562 | 7,080 | 6,670 | 7,212 | 26,511 | 27,484 | ||||||||||||||||||||
|
Pre provision pretax income
|
$ | 1,746 | 2,323 | 2,090 | 2,189 | 2,591 | 8,348 | 8,093 | ||||||||||||||||||||
|
Pretax income
|
$ | 1,746 | 1,922 | 1,890 | 1,890 | 2,191 | 7,448 | 6,743 | ||||||||||||||||||||
|
Net income
|
$ | 1,224 | 1,344 | 1,319 | 1,318 | 1,524 | 5,205 | 4,814 | ||||||||||||||||||||
|
PER SHARE INFORMATION:
|
||||||||||||||||||||||||||||
|
Basic & diluted earnings per share
|
$ | 0.25 | 0.28 | 0.27 | 0.27 | 0.31 | 1.07 | 0.99 | ||||||||||||||||||||
|
Common dividends
|
$ | 0.035 | 0.03 | 0.055 | - | - | 0.12 | - | ||||||||||||||||||||
|
Book value per common share
|
$ | 11.55 | 11.42 | 11.17 | 11.16 | 10.96 | 11.55 | 10.96 | ||||||||||||||||||||
|
Tangible book value per common share
|
$ | 7.98 | 7.83 | 7.57 | 7.52 | 7.28 | 7.98 | 7.28 | ||||||||||||||||||||
|
PERFORMANCE RATIOS:
|
||||||||||||||||||||||||||||
|
Return on average assets
|
0.76 | % | 0.84 | % | 0.82 | % | 0.83 | % | 0.95 | % | 0.81 | % | 0.75 | % | ||||||||||||||
|
Return on average common equity
|
8.75 | % | 9.82 | % | 9.70 | % | 9.82 | % | 11.64 | % | 9.52 | % | 9.57 | % | ||||||||||||||
|
Return on avg. tangible common equity
|
12.71 | % | 14.43 | % | 14.35 | % | 14.68 | % | 17.73 | % | 14.03 | % | 15.00 | % | ||||||||||||||
|
Efficiency ratio
|
76.40 | % | 72.40 | % | 75.54 | % | 73.56 | % | 71.96 | % | 74.43 | % | 75.48 | % | ||||||||||||||
|
Earning asset yield
|
4.31 | % | 4.40 | % | 4.58 | % | 4.65 | % | 4.50 | % | 4.43 | % | 4.72 | % | ||||||||||||||
|
Cost of interest bearing liabilities
|
0.76 | % | 0.79 | % | 0.81 | % | 0.90 | % | 0.96 | % | 0.81 | % | 1.07 | % | ||||||||||||||
|
Net interest margin
|
3.50 | % | 3.65 | % | 3.79 | % | 3.78 | % | 3.65 | % | 3.68 | % | 3.70 | % | ||||||||||||||
|
Tax equivalent effect
|
0.07 | % | 0.07 | % | 0.07 | % | 0.08 | % | 0.07 | % | 0.07 | % | 0.06 | % | ||||||||||||||
|
Net interest margin - fully tax equivalent basis
|
3.57 | % | 3.72 | % | 3.86 | % | 3.86 | % | 3.72 | % | 3.75 | % | 3.76 | % | ||||||||||||||
|
ASSET QUALITY RATIOS:
|
||||||||||||||||||||||||||||
|
Gross charge-offs
|
$ | 163 | 307 | 213 | 136 | 300 | 819 | 1,328 | ||||||||||||||||||||
|
Recoveries
|
$ | 7 | 13 | 34 | 18 | 15 | 72 | 260 | ||||||||||||||||||||
|
Net charge-offs
|
$ | 156 | 294 | 179 | 118 | 285 | 747 | 1,068 | ||||||||||||||||||||
|
Nonaccruing loans/ Total loans
|
1.01 | % | 2.21 | % | 0.95 | % | 1.06 | % | 1.14 | % | 1.01 | % | 1.14 | % | ||||||||||||||
|
Nonperforming loans/ Total loans
|
1.38 | % | 2.58 | % | 1.22 | % | 1.34 | % | 1.42 | % | 1.38 | % | 1.42 | % | ||||||||||||||
|
Nonperforming assets/ Loans & OREO
|
1.51 | % | 2.87 | % | 1.63 | % | 1.83 | % | 1.92 | % | 1.51 | % | 1.92 | % | ||||||||||||||
|
Nonperforming assets/ Total assets
|
1.14 | % | 2.16 | % | 1.20 | % | 1.30 | % | 1.40 | % | 1.14 | % | 1.40 | % | ||||||||||||||
|
Allowance for loan loss/ Nonperforming loans
|
105.8 | % | 58.2 | % | 124.2 | % | 114.9 | % | 103.8 | % | 105.80 | % | 103.8 | % | ||||||||||||||
|
Allowance for loan loss/ Total loans
|
1.46 | % | 1.50 | % | 1.51 | % | 1.54 | % | 1.47 | % | 1.46 | % | 1.47 | % | ||||||||||||||
|
Net loan charge-offs/ Average loans (ann.)
|
0.13 | % | 0.25 | % | 0.15 | % | 0.10 | % | 0.25 | % | 0.16 | % | 0.23 | % | ||||||||||||||
|
Loan loss provision/ Net charge-offs
|
0.00 | % | 136.39 | % | 111.73 | % | 253.39 | % | 140.56 | % | 120.48 | % | 126.40 | % | ||||||||||||||
|
CAPITAL & LIQUIDITY RATIOS:
|
||||||||||||||||||||||||||||
|
Loans/ Deposits
|
92.10 | % | 91.12 | % | 90.74 | % | 85.57 | % | 87.93 | % | 92.10 | % | 87.93 | % | ||||||||||||||
|
Equity/ Assets
|
8.91 | % | 8.77 | % | 8.61 | % | 8.47 | % | 8.35 | % | 8.91 | % | 8.35 | % | ||||||||||||||
|
Tangible equity/ Tangible assets
|
6.33 | % | 6.18 | % | 6.00 | % | 5.87 | % | 5.70 | % | 6.33 | % | 5.70 | % | ||||||||||||||
|
END OF PERIOD BALANCES
|
||||||||||||||||||||||||||||
|
Total loans
|
$ | 477,303 | 475,233 | 464,035 | 455,443 | 463,389 | 477,303 | 463,389 | ||||||||||||||||||||
|
Total assets
|
$ | 631,754 | 633,412 | 631,492 | 641,300 | 638,234 | 631,754 | 638,234 | ||||||||||||||||||||
|
Deposits
|
$ | 518,234 | 521,543 | 511,378 | 532,259 | 527,001 | 518,234 | 527,001 | ||||||||||||||||||||
|
Stockholders equity
|
$ | 56,269 | 55,537 | 54,387 | 54,295 | 53,284 | 56,269 | 53,284 | ||||||||||||||||||||
|
Intangibles
|
$ | 17,402 | 17,457 | 17,555 | 17,719 | 17,902 | 17,402 | 17,902 | ||||||||||||||||||||
|
Tangible equity
|
$ | 38,867 | 38,080 | 36,832 | 36,576 | 35,382 | 38,867 | 35,382 | ||||||||||||||||||||
|
Full-time equivalent employees
|
200 | 196 | 198 | 204 | 204 | 200 | 204 | |||||||||||||||||||||
|
Period end basic shares outstanding
|
4,870 | 4,864 | 4,867 | 4,863 | 4,862 | 4,870 | 4,862 | |||||||||||||||||||||
|
AVERAGE BALANCES
|
||||||||||||||||||||||||||||
|
Total loans
|
$ | 479,701 | 474,349 | 464,105 | 459,988 | 455,705 | 469,603 | 455,516 | ||||||||||||||||||||
|
Total earning assets
|
$ | 571,332 | 567,787 | 564,050 | 559,383 | 564,564 | 565,390 | 560,858 | ||||||||||||||||||||
|
Total assets
|
$ | 645,148 | 636,437 | 640,382 | 638,801 | 639,048 | 639,920 | 638,035 | ||||||||||||||||||||
|
Deposits
|
$ | 525,334 | 516,669 | 520,259 | 524,901 | 522,970 | 521,648 | 522,412 | ||||||||||||||||||||
|
Stockholders equity
|
$ | 55,925 | 54,758 | 54,398 | 53,711 | 52,351 | 54,700 | 50,300 | ||||||||||||||||||||
|
Intangibles
|
$ | 17,404 | 17,504 | 17,633 | 17,810 | 17,968 | 17,590 | 18,217 | ||||||||||||||||||||
|
Tangible equity
|
$ | 38,521 | 37,254 | 36,765 | 35,901 | 34,383 | 37,110 | 32,083 | ||||||||||||||||||||
8
| SB FINANCIAL GROUP, INC. | ||||||||||||||||||||||||
| Rate Volume Analysis - (Unaudited) | ||||||||||||||||||||||||
|
For the Three and Twelve Months Ended December 31, 2013 and 2012
|
||||||||||||||||||||||||
|
($ in Thousands)
|
Three Months Ended December 31, 2013
|
Three Months Ended December 31, 2012
|
||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Assets
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
|
Taxable securities
|
$ | 73,306 | 313 | 1.71 | % | $ | 84,945 | 330 | 1.56 | % | ||||||||||||||
|
Non-taxable securities
|
18,325 | 274 | 5.99 | % | 15,985 | 238 | 5.96 | % | ||||||||||||||||
|
Federal funds sold
|
- | - | N/A | - | - | N/A | ||||||||||||||||||
|
Loans, net
|
479,701 | 5,448 | 4.54 | % | 463,635 | 5,873 | 5.07 | % | ||||||||||||||||
|
Total earning assets
|
571,332 | 6,035 | 4.23 | % | 564,565 | 6,441 | 4.56 | % | ||||||||||||||||
|
Cash and due from banks
|
22,369 | 18,185 | ||||||||||||||||||||||
|
Allowance for loan losses
|
(7,075 | ) | (6,842 | ) | ||||||||||||||||||||
|
Premises and equipment
|
13,811 | 15,344 | ||||||||||||||||||||||
|
Other assets
|
44,711 | 47,595 | ||||||||||||||||||||||
|
Total assets
|
$ | 645,148 | $ | 638,847 | ||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Savings and interest-bearing demand
|
$ | 265,258 | 18 | 0.03 | % | $ | 247,866 | 44 | 0.07 | % | ||||||||||||||
|
Time deposits
|
176,609 | 495 | 1.12 | % | 198,657 | 608 | 1.23 | % | ||||||||||||||||
|
Repurchase agreements
|
15,131 | 4 | 0.11 | % | 11,711 | 3 | 0.10 | % | ||||||||||||||||
|
Advances from FHLB
|
16,000 | 82 | 2.05 | % | 18,245 | 92 | 2.03 | % | ||||||||||||||||
|
Junior subordinated debentures
|
20,620 | 330 | 6.40 | % | 20,620 | 419 | 8.13 | % | ||||||||||||||||
|
Notes payable & other borrowed funds
|
634 | 10 | 6.31 | % | 1,791 | 27 | 6.03 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
494,252 | 939 | 0.76 | % | 498,890 | 1,194 | 0.96 | % | ||||||||||||||||
|
Non interest-bearing demand
|
83,467 | 76,447 | ||||||||||||||||||||||
|
Other liabilities
|
11,504 | 11,159 | ||||||||||||||||||||||
|
Total liabilities
|
589,223 | 586,496 | ||||||||||||||||||||||
|
Equity
|
55,925 | 52,351 | ||||||||||||||||||||||
|
Total liabilities and equity
|
$ | 645,148 | $ | 638,847 | ||||||||||||||||||||
|
Net interest income (tax equivalent basis)
|
$ | 5,096 | $ | 5,247 | ||||||||||||||||||||
|
Net interest income as a percent of average interest-earning assets
|
3.57 | % | ||||||||||||||||||||||
9
|
Twelve Months Ended December 31, 2013
|
Twelve Months Ended December 31, 2013
|
|||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Assets
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
||||||||||||||||||
|
Taxable securities
|
$ | 78,520 | 1,244 | 1.58 | % | $ | 90,182 | 1,515 | 1.68 | % | ||||||||||||||
|
Non-taxable securities
|
17,267 | 1,065 | 6.17 | % | 15,160 | 919 | 6.06 | % | ||||||||||||||||
|
Federal funds sold
|
- | - | N/A | - | - | N/A | ||||||||||||||||||
|
Loans, net
|
469,603 | 22,936 | 4.88 | % | 455,516 | 24,047 | 5.28 | % | ||||||||||||||||
|
Total earning assets
|
565,390 | 25,245 | 4.47 | % | 560,858 | 26,481 | 4.72 | % | ||||||||||||||||
|
Cash and due from banks
|
20,827 | 20,728 | ||||||||||||||||||||||
|
Allowance for loan losses
|
(6,962 | ) | (6,591 | ) | ||||||||||||||||||||
|
Premises and equipment
|
14,635 | 15,360 | ||||||||||||||||||||||
|
Other assets
|
46,030 | 47,680 | ||||||||||||||||||||||
|
Total assets
|
$ | 639,920 | $ | 638,035 | ||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Savings and interest-bearing demand
|
$ | 262,954 | 75 | 0.03 | % | $ | 245,528 | 210 | 0.09 | % | ||||||||||||||
|
Time deposits
|
180,154 | 2,156 | 1.20 | % | 206,135 | 2,759 | 1.34 | % | ||||||||||||||||
|
Repurchase agreements
|
12,011 | 11 | 0.09 | % | 15,180 | 142 | 0.94 | % | ||||||||||||||||
|
Advances from FHLB
|
18,551 | 339 | 1.83 | % | 15,547 | 333 | 2.14 | % | ||||||||||||||||
|
Junior subordinated debentures
|
20,620 | 1,407 | 6.82 | % | 20,620 | 1,815 | 8.80 | % | ||||||||||||||||
|
Notes payable & other borrowed funds
|
1,074 | 47 | 4.38 | % | 2,058 | 131 | 6.36 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
495,364 | 4,035 | 0.81 | % | 505,067 | 5,390 | 1.07 | % | ||||||||||||||||
|
Non interest-bearing demand
|
78,540 | 70,749 | ||||||||||||||||||||||
|
Other liabilities
|
11,316 | 11,919 | ||||||||||||||||||||||
|
Total liabilities
|
585,220 | 587,735 | ||||||||||||||||||||||
|
Equity
|
54,700 | 50,300 | ||||||||||||||||||||||
|
Total liabilities and equity
|
$ | 639,920 | $ | 638,035 | ||||||||||||||||||||
|
Net interest income (tax equivalent basis)
|
$ | 21,210 | $ | 21,091 | ||||||||||||||||||||
|
Net interest income as a percent of average interest-earning assets
|
3.75 | % | 3.76 | % | ||||||||||||||||||||
10