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 2016 Results

 

Year-over-year earnings growth of 14% and loan growth of 16%

 

DEFIANCE, Ohio, July 21, 2016 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, item and statement processing services, today reported earnings for the second-quarter and six-months ended June 30, 2016.

 

Second-quarter 2016 highlights over prior-year second quarter include:

 

	●	Net income of $2.3 million, an increase of 13.8 percent
	●	Diluted earnings per share (EPS) of $0.35, an increase of 12.9 percent
	●	Loan growth from the prior year of $82.4 million, or 15.8 percent, and from the linked quarter $27.6 million, or 4.8 percent
	●	Deposit growth from the prior year of $85.4 million, or 15.2 percent
	●	Fully Taxable Equivalent (FTE) net interest margin of 3.75 percent, down 1 basis point
	●	Mortgage origination volume of $110.2 million, an increase of 17.7 percent; servicing portfolio $831.8 million

 

Six-months ended June 30, 2016, highlights over prior-year six months include:

 

	●	Net income of $3.9 million, an increase of 12.4 percent
	●	Diluted earnings per share of $0.61, an increase of 13.0 percent

 

Highlights		Three Months Ended												Six Months Ended
($000’s except ratios and share data)		Jun. 2016				Jun. 2015				% Change				Jun. 2016				Jun. 2015				% Change
Operating revenue (FTE)		$	10,819			$	10,301				5.0	%		$	20,455			$	19,522				4.8	%
Interest income (FTE)			7,302				6,509				12.2				14,214				12,777				11.2
Interest expense			790				651				21.4				1,505				1,294				16.3
Net interest income (FTE)			6,512				5,858				11.2				12,709				11,483				10.7
Noninterest income			4,307				4,443				(3.1	)			7,746				8,039				(3.6	)
Noninterest expense			7,407				6,818				8.6				14,302				13,462				6.2
Net income			2,265				1,991				13.8				3,920				3,487				12.4
Earnings per diluted share			0.35				0.31				12.9				0.61				0.54				13.0
Net interest margin (FTE)			3.75	%			3.76	%			(0.3	)			3.75	%			3.74	%			0.3
Return on assets			1.15	%			1.11	%			3.6				1.01	%			0.98	%			3.1
Return on equity			10.80	%			10.26	%			5.3				9.43	%			9.05	%			4.2

 

 

“We continued to execute successfully on our strategy to move our overall performance to a higher level,” said Mark Klein, Chairman, President and CEO of SB Financial. “Our results for the second quarter reflected this progress, with a 12.9 percent increase in EPS compared to the prior-year quarter.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income (FTE) and noninterest income, was up 5.0 percent from the second quarter of 2015, and up 12.5 percent from the linked quarter.

 

	●	Net interest income (FTE) was up 11.2 percent from the year-ago quarter, and up 5.1 percent over the linked quarter.
	●	Net interest margin (FTE) was down 1 basis point from the year-ago quarter, and flat to the linked quarter.
	●	Noninterest income was down 3.1 percent from the year-ago quarter, but up 25.2 percent from the linked quarter.
	●	Total revenue (FTE) for the first six months of 2016 was $20.5 million compared to $19.5 million for the first six months of 2015, which is a 4.8 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the second quarter of 2016 were $110.2 million, up $16.6 million, or 17.7 percent, from the year-ago quarter. Total sales of originated loans were $95.2 million, up $15.3 million, or 19.2 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 $2.0 million for the second quarter of 2016, compared to $2.3 million for the year-ago quarter, or a 12.3 percent decrease. The mortgage servicing valuation adjustment for the second-quarter 2016 was a negative $0.5 million, compared to a positive adjustment for the second quarter of 2015 of $0.3 million. The aggregate servicing valuation impairment ended the quarter at $1.5 million. The mortgage servicing portfolio at June 30, 2016, was $831.8 million, up $108.7 million, or 15.0 percent, from $723.1 million at June 30, 2015.

 

Mr. Klein noted, “The entire mortgage production team turned in one of our best quarters in recent years. Our effective efforts drove portfolio growth to an all-time high, as new money production accounted for 90 percent of our volume. Our strong performance was offset by the 35 basis point decline in the 10-year Treasury, which resulted in an additional $500 thousand impairment to our servicing rights.”

 

Mortgage Banking ($000’s)
		Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Jun. 2015
Mortgage originations		$	110,210			$	71,941			$	67,149			$	86,965			$	93,605
Mortgage sales			95,150				59,383				56,302				70,081				79,806
Mortgage servicing portfolio			831,781				792,666				772,533				750,958				723,100
Mortgage servicing rights			6,494				6,608				7,152				6,798				6,548
Mortgage servicing revenue:
Loan servicing fees			505				491				476				459				438
OMSR amortization			(309	)			(170	)			(157	)			(223	)			(219	)
Net administrative fees			196				321				319				236				219
OMSR valuation adjustment			(469	)			(767	)			64				(138	)			268
Net loan servicing fees			(273	)			(446	)			383				98				487
Gain on sale of mortgages			2,284				1,383				1,372				1,687				1,805
Mortgage banking revenue, net		$	2,011			$	937			$	1,755			$	1,785			$	2,292

 

 

Fee Income and Noninterest Expense

 

SB Financial’s fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and from sales of small business loans (SBA). Wealth management assets managed within our 900 accounts stood at $367.2 million as of June 30, 2016. For the second quarter of 2016, fee income as a percentage of total revenue was 40.1 percent. The servicing rights impairment negatively impacted the quarter by $0.5 million.

 

For the second quarter of 2016, noninterest expense (NIE) of $7.4 million, was up $0.6 million, or 8.6 percent, compared to the same quarter last year. Total staffing levels were up 7.7 percent, due to our new branch locations and increased support in our compliance and mortgage divisions. Compared to the linked quarter, NIE was up $0.5 million, or 7.4 percent.

 

Mr. Klein stated, “Once again, total fee income was up significantly, even with the impairment of our mortgage servicing rights; non-interest income continues to represent more than 40 percent of total revenue. Our strategy to diversify our revenue streams is delivering bottom-line improvement.”

 

Fee Income / Noninterest Expense ($000’s)
		Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Jun. 2015
Fee Income		$	4,307			$	3,439			$	3,716			$	3,952			$	4,443
Fee Income / Total Revenue			40.1	%			36.0	%			38.3	%			39.4	%			43.5	%
Fee Income / Average Assets			2.2	%			1.8	%			2.0	%			2.2	%			2.5	%
Noninterest Expense		$	7,407			$	6,895			$	6,839			$	6,626			$	6,818
Efficiency Ratio			69.0	%			72.2	%			70.2	%			65.6	%			66.3	%
NIE / Average Assets			3.8	%			3.6	%			3.7	%			3.7	%			3.8	%

 

Balance Sheet

 

Total assets as of June 30, 2016, were $793.2 million, up $86.0 million, or 12.2 percent, from a year ago. Total equity as of June 30, 2016, was $85.0 million, up 8.7 percent, from a year ago, and was at 10.7 percent of total assets.

 

Total loans held for investment were $604.8 million at June 30, 2016, up $82.4 million, or 15.8 percent, from June 30, 2015. Commercial real estate loans accounted for the majority of growth, up $37.9 million, or 16.9 percent. Residential real estate and commercial loans also rose $18.6 million and $16.4 million, or 15.9 percent and 19.4 percent, respectively.

 

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $96.2 million represented 12.1 percent of assets at June 30, 2016, and was down 6.2 percent from the year-ago period. Deposit balances of $648.3 million at June 30, 2016, increased by $85.4 million, or 15.2 percent, since June 30, 2015. Growth from the prior year included $16.9 million in checking and $68.5 million in savings and time deposit balances.

 

 

Mr. Klein said, “Loan growth for the quarter of $28 million continued to drive net interest income and top-line revenue higher. For the year, loan balances have grown more than $47 million and provided the expansion of our operating revenue by more than 25 percent from the linked quarter. Our growth comes on the heels of our hard work to achieve and maintain top-quartile asset quality metrics.”

 

Loan Portfolio ($000’s)		Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Jun. 2015				Variance YOY
Commercial		$	100,651			$	92,086			$	86,586			$	83,741			$	84,297			$	16,354
% of Total			16.6	%			16.0	%			15.5	%			15.5	%			16.0	%			19.4	%
Commercial RE			261,923				256,461				242,208				231,249				223,994				37,929
% of Total			43.3	%			44.4	%			43.4	%			42.8	%			42.9	%			16.9	%
Agriculture			52,375				42,467				43,835				46,102				45,724				6,651
% of Total			8.7	%			7.4	%			7.9	%			8.5	%			8.8	%			14.5	%
Residential RE			135,506				132,627				130,806				126,840				116,944				18,562
% of Total			22.4	%			23.0	%			23.5	%			23.5	%			22.4	%			15.9	%
Consumer & Other			54,321				53,493				54,224				52,957				51,444				2,877
% of Total			9.0	%			9.3	%			9.7	%			9.7	%			9.9	%			5.6	%
Total Loans		$	604,776			$	577,134			$	557,659			$	540,889			$	522,403			$	82,373
Total Growth Percentage																							15.8	%

 

Deposit Bal. ($000’s)		Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Jun. 2015				Variance YOY
Non-Int DDA		$	110,899			$	112,209			$	113,113			$	102,460			$	96,322			$	14,577
% of Total			17.1	%			17.6	%			19.3	%			17.9	%			17.1	%			15.1	%
Interest DDA			129,658				138,235				126,443				126,816				127,362				2,296
% of Total			20.0	%			21.7	%			21.6	%			22.1	%			22.6	%			1.8	%
Savings			84,975				86,038				83,447				77,809				78,729				6,246
% of Total			13.1	%			13.5	%			14.2	%			13.6	%			14.0	%			7.9	%
Money Market			134,365				120,672				104,412				107,538				100,315				34,050
% of Total			20.7	%			18.9	%			17.8	%			18.7	%			17.8	%			33.9	%
Certificates			188,403				180,874				159,038				158,945				160,198				28,205
% of Total			29.1	%			28.4	%			27.1	%			27.7	%			28.5	%			17.6	%
Total Deposits		$	648,300			$	638,028			$	586,453			$	573,568			$	562,926			$	85,374
Total Growth Percentage																							15.2	%

 

Asset Quality

 

SB Financial continues to maintain above peer median asset quality, reporting nonperforming assets of $8.2 million as of June 30, 2016, up $2.8 million, or 52.9 percent, from the year-ago quarter, but slightly down from the linked quarter. The increase from the prior year was the result of an existing delinquent commercial real estate credit that has moved to foreclosure. The Company feels the valuation of the property will approximate the loan commitment when the situation is resolved. SB Financial’s 1.0 percent of nonperforming assets to total assets remains near the top quartile in its 65-bank peer group. The coverage of problem loans by the loan loss allowance was 92.3 percent at June 30, 2016, down from the 134.6 percent at June 30, 2015.

 

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Category		Jun. 2016				Mar. 2016				Dec. 2015				Sep. 2015				Jun. 2015				Variance YOY
Commercial & Agriculture		$	158			$	164			$	196			$	453			$	702			$	(544	)
% of Total Com./Ag. loans			0.12	%			0.12	%			0.15	%			0.35	%			0.54	%			(77.5	%)
Commercial RE			5,309				5,218				5,670				5,393				2,023				3,286
% of Total CRE loans			2.02	%			2.03	%			2.34	%			2.33	%			0.90	%			162.4	%
Residential RE			1,088				1,156				749				795				772				316
% of Total Res. RE loans			0.80	%			0.87	%			0.57	%			0.63	%			0.66	%			40.9	%
Consumer & Other			138				46				32				101				112				26
% of Total Cons./Oth. loans			0.25	%			0.09	%			0.06	%			0.20	%			0.22	%			23.2	%
Total Nonaccruing Loans			6,693				6,584				6,646				6,742				3,609				3,084
% of Total loans			1.11	%			1.14	%			1.19	%			1.25	%			0.69	%			85.4	%
Accruing Restructured Loans			1,381				1,482				1,500				1,576				1,595
Total Nonaccruing & Restructured Loans		$	8,074			$	8,066			$	8,146			$	8,318			$	5,204			$	2,870
% of Total loans			1.34	%			1.40	%			1.46	%			1.54	%			1.00	%			55.2	%
Foreclosed Assets			157				406				286				188				180
Total Nonperforming Assets		$	8,231			$	8,472			$	8,432			$	8,506			$	5,384			$	2,847
% of Total assets			1.04	%			1.09	%			1.15	%			1.18	%			0.76	%			52.9	%

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on July 22, 2016, 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 DCM. State Bank provides a full range of financial services for consumers and small businesses, including wealth management, 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 22 full-service ATMs. The Company has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. DCM provides item processing services to community banks located primarily in the Midwest. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.  SB Financial’s preferred stock is listed on the NASDAQ Capital Market under the symbol “SBFGP”.  

 

In May 2016, SB Financial was ranked #160 on the American Banker Magazine’s list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity (“ROE”).

 

 

Forward-Looking Statements

 

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

 

Non-GAAP Financial Measures

 

In addition to results presented in accordance with GAAP, this release contains certain non-GAAP financial measures. Management believes that including certain non-GAAP financial measures will provide investors with information useful in understanding the Company’s financial performance, its performance trends and financial position. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.

 

###

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		June				March				December				September				June
($ in Thousands)		2016				2016				2015				2015				2015
ASSETS
Cash and due from banks		$	29,945				35,529				20,459				18,372				21,709
Securities available for sale, at fair value			92,472				97,990				89,789				95,482				98,786
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			96,220				101,738				93,537				99,230				102,534
Loans held for sale			8,441				6,890				7,516				8,517				10,067
Loans, net of unearned income			604,776				577,134				557,659				540,889				522,403
Allowance for loan losses			(7,450	)			(7,205	)			(6,990	)			(7,076	)			(7,006	)
Net loans			597,326				569,929				550,669				533,813				515,397
Premises, equipment and software, net			18,806				18,994				19,010				17,619				16,432
Cash surrender value of life insurance			13,581				13,509				13,437				13,364				13,291
Goodwill & other intangibles			16,429				16,432				16,435				16,473				16,527
Foreclosed assets held for sale, net			157				406				286				188				180
Mortgage servicing rights			6,494				6,608				7,152				6,798				6,548
Accrued interest receivable			1,397				1,489				1,260				1,817				1,506
Other assets			4,367				3,296				3,310				3,046				3,017
Total assets		$	793,163				774,820				733,071				719,237				707,208
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	110,899				112,209				113,113				102,460				96,322
Interest bearing demand			129,658				138,235				126,443				126,816				127,362
Savings			84,975				86,038				83,447				77,809				78,729
Money market			134,365				120,672				104,412				107,538				100,315
Time deposits			188,403				180,874				159,038				158,945				160,198
Total deposits			648,300				638,028				586,453				573,568				562,926
Advances from Federal Home Loan Bank			23,000				21,000				35,000				30,000				34,000
Repurchase agreements			17,797				14,524				12,406				16,911				15,169
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			384				343				264				341				289
Other liabilities			8,422				7,564				7,397				7,782				6,391
Total liabilities			708,213				691,769				651,830				638,912				629,085
Equity
Preferred stock			13,983				13,983				13,983				13,983				13,983
Common stock			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,367				15,365				15,438				15,444				15,424
Retained earnings			42,925				41,199				40,059				38,705				36,930
Accumulated other comprehensive income			1,552				1,296				650				1,157				750
Treasury stock			(1,446	)			(1,361	)			(1,458	)			(1,533	)			(1,533	)
Total equity			84,950				83,051				81,241				80,325				78,123
Total liabilities and equity		$	793,163				774,820				733,071				719,237				707,208

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands - except share data)		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
Interest income		2016				2016				2015				2015				2015				2016				2015
Loans
Taxable		$	6,648				6,260				6,086				6,152				5,835				12,908				11,454
Nontaxable			24				9				10				10				9				33				15
Securities
Taxable			392				402				357				382				395				794				767
Nontaxable			149				156				169				173				175				305				352
Total interest income			7,213				6,827				6,622				6,717				6,414				14,040				12,588
Interest expense
Deposits			647				545				492				492				500				1,192				995
Repurchase Agreements & Other			4				5				3				5				4				9				9
Federal Home Loan Bank advances			77				106				95				94				94				183				186
Trust preferred securities			62				59				56				53				53				121				104
Total interest expense			790				715				646				644				651				1,505				1,294
Net interest income			6,423				6,112				5,976				6,073				5,763				12,535				11,294
Provision for loan losses			-				250				150				100				500				250				850
Net interest income after provision for loan losses			6,423				5,862				5,826				5,973				5,263				12,285				10,444
Noninterest income
Wealth Management Fees			643				633				645				636				666				1,276				1,325
Customer service fees			680				680				711				734				702				1,360				1,334
Gain on sale of mtg. loans & OMSR's			2,284				1,383				1,372				1,687				1,805				3,667				3,205
Mortgage loan servicing fees, net			(273	)			(446	)			383				98				486				(719	)			545
Gain on sale of non-mortgage loans			151				449				75				296				288				600				575
Data service fees			233				277				273				294				306				510				623
Net gain on sales of securities			92				111				-				-				-				203				-
Gain/(loss) on sale/disposal of assets			186				22				38				-				(1	)			208				(20	)
Other income			311				330				219				207				191				641				452
Total non-interest income			4,307				3,439				3,716				3,952				4,443				7,746				8,039
Noninterest expense
Salaries and employee benefits			4,314				3,779				3,855				3,650				3,935				8,093				7,412
Net occupancy expense			524				565				479				481				480				1,089				983
Equipment expense			639				595				566				568				524				1,234				1,089
Data processing fees			339				305				264				286				247				644				510
Professional fees			326				316				381				416				426				642				866
Marketing expense			199				171				157				146				142				370				291
Telephone and communication			102				99				103				96				98				201				188
Postage and delivery expense			162				197				168				198				201				359				435
State, local and other taxes			171				99				130				130				128				270				257
Employee expense			128				118				126				126				138				246				291
Intangible amortization expense			3				3				37				54				55				6				109
Other expenses			500				648				573				475				444				1,148				1,031
Total non-interest expense			7,407				6,895				6,839				6,626				6,818				14,302				13,462
Income before income tax expense			3,323				2,406				2,703				3,299				2,888				5,729				5,021
Income tax expense			1,058				751				835				1,035				897				1,809				1,534
Net income		$	2,265				1,655				1,868				2,264				1,991				3,920				3,487
Preferred Stock Dividends			244				244				244				244				244				488				469
Net income available to common shares			2,021				1,411				1,624				2,020				1,747				3,433				3,018
Common share data:
Basic earnings per common share		$	0.41				0.29				0.33				0.41				0.36				0.70				0.62
Diluted earnings per common share		$	0.35				0.26				0.29				0.35				0.31				0.61				0.54
Average shares outstanding ($ in thousands):
Basic:			4,893				4,896				4,890				4,884				4,884				4,894				4,882
Diluted:			6,390				6,401				6,396				6,390				6,382				6,396				6,381

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended																				Six Months Ended
SUMMARY OF		June				March				December				September				June				June				June
OPERATIONS		2016				2016				2015				2015				2015				2016				2015
Net interest income		$	6,423				6,112				5,976				6,073				5,763				12,535				11,294
Tax-equivalent adjustment		$	89				85				92				94				95				174				189
Tax-equivalent net interest income		$	6,512				6,197				6,068				6,167				5,858				12,709				11,483
Provision for loan loss		$	-				250				150				100				500				250				850
Noninterest income		$	4,307				3,439				3,716				3,952				4,443				7,746				8,039
Total revenue, tax-equivalent		$	10,819				9,636				9,784				10,119				10,301				20,455				19,522
Noninterest expense		$	7,407				6,895				6,839				6,626				6,818				14,302				13,462
Pre-tax pre-provision income		$	3,323				2,656				2,853				3,399				3,388				5,979				5,871
Pretax income		$	3,323				2,406				2,703				3,299				2,888				5,729				5,021
Net income		$	2,265				1,655				1,868				2,264				1,991				3,920				3,487
Income available to common shareholders		$	2,021				1,411				1,624				2,020				1,747				3,433				3,018
PER SHARE INFORMATION:
Basic earnings per share		$	0.41				0.29				0.33				0.41				0.36				0.70				0.62
Diluted earnings per share		$	0.35				0.26				0.29				0.35				0.31				0.61				0.54
Common dividends		$	0.060				0.055				0.055				0.050				0.050				0.115				0.095
Book value per common share		$	13.39				13.07				12.81				12.68				12.33				13.39				12.33
Tangible book value per common share		$	11.15				10.74				10.39				10.21				9.75				11.15				9.75
Market price per common share		$	10.87				10.31				11.14				10.27				10.59				10.87				10.59
Market price per preferred share		$	11.83				11.19				12.65				13.00				11.75				11.83				11.75
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.15	%			0.87	%			1.02	%			1.26	%			1.11	%			1.01	%			0.98	%
Pre-tax pre-provision ROAA			1.69	%			1.40	%			1.56	%			1.89	%			1.89	%			1.55	%			1.64	%
Return on average equity			10.80	%			8.03	%			9.23	%			11.42	%			10.26	%			9.43	%			9.05	%
Return on average tangible equity			16.94	%			12.74	%			14.80	%			18.55	%			16.90	%			14.87	%			14.99	%
Efficiency ratio			69.00	%			72.16	%			70.18	%			65.56	%			66.26	%			70.49	%			69.07	%
Earning asset yield			4.20	%			4.18	%			4.17	%			4.27	%			4.18	%			4.19	%			4.16	%
Cost of interest bearing liabilities			0.55	%			0.51	%			0.49	%			0.49	%			0.49	%			0.53	%			0.49	%
Net interest margin			3.69	%			3.69	%			3.71	%			3.81	%			3.70	%			3.69	%			3.68	%
Tax equivalent effect			0.06	%			0.06	%			0.05	%			0.06	%			0.06	%			0.06	%			0.06	%
Net interest margin, tax equivalent			3.75	%			3.75	%			3.76	%			3.87	%			3.76	%			3.75	%			3.74	%
Non interest income/Average assets			2.20	%			1.81	%			2.03	%			2.20	%			2.48	%			2.00	%			2.25	%
Non interest expense/Average assets			3.78	%			3.62	%			3.74	%			3.69	%			3.81	%			3.70	%			3.77	%
Net noninterest expense/Average assets			1.58	%			1.82	%			1.71	%			1.49	%			1.33	%			1.70	%			1.52	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	2				94				241				58				350				96				653
Recoveries		$	247				59				5				29				26				306				37
Net charge-offs		$	(245	)			35				236				29				324				(210	)			616
Nonaccruing loans/ Total loans			1.11	%			1.14	%			1.19	%			1.25	%			0.69	%			1.11	%			0.69	%
Nonperforming loans/ Total loans			1.34	%			1.40	%			1.46	%			1.54	%			1.00	%			1.34	%			1.00	%
Nonperforming assets/ Loans & OREO			1.36	%			1.47	%			1.51	%			1.57	%			1.03	%			1.36	%			1.03	%
Nonperforming assets/ Total assets			1.04	%			1.09	%			1.15	%			1.18	%			0.76	%			1.04	%			0.76	%
Allowance for loan loss/ Nonperforming loans			92.27	%			89.33	%			85.81	%			85.07	%			134.63	%			92.27	%			134.63	%
Allowance for loan loss/ Total loans			1.23	%			1.25	%			1.25	%			1.31	%			1.34	%			1.23	%			1.34	%
Net loan charge-offs/ Average loans (ann.)			(0.16	%)			0.02	%			0.17	%			0.02	%			0.25	%			(0.07	%)			0.24	%
Loan loss provision/ Net charge-offs			0.00	%			714.29	%			63.56	%			344.83	%			154.32	%			(119.05	%)			137.99	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			93.29	%			90.46	%			95.09	%			94.30	%			92.80	%			93.29	%			92.80	%
Equity/ Assets			10.71	%			10.72	%			11.08	%			11.17	%			11.05	%			10.71	%			11.05	%
Tangible equity/ Tangible assets			7.02	%			6.94	%			7.09	%			7.10	%			6.89	%			7.02	%			6.89	%
Tangible equity adjusted for conversion			8.82	%			8.78	%			9.04	%			9.09	%			8.92	%			8.82	%			8.92	%
END OF PERIOD BALANCES
Total assets		$	793,163				774,820				733,071				719,237				707,208				793,163				707,208
Total loans		$	604,776				577,134				557,659				540,889				522,403				604,776				522,403
Deposits		$	648,300				638,028				586,453				573,568				562,926				648,300				562,926
Stockholders equity		$	84,950				83,051				81,241				80,325				78,123				84,950				78,123
Goodwill & intangibles		$	16,429				16,432				16,435				16,473				16,527				16,429				16,527
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	54,538				52,636				50,823				49,869				47,613				54,538				47,613
Mortgage servicing portfolio		$	831,781				792,666				772,533				750,958				723,100				831,781				723,100
Wealth/Brokerage assets under care		$	367,223				357,531				353,488				347,136				361,310				367,223				361,310
Total assets under care		$	1,992,167				1,925,017				1,859,092				1,817,331				1,791,618				1,992,167				1,791,618
Full-time equivalent employees			223				218				214				209				207				223				207
Period end basic shares outstanding			4,892				4,900				4,891				4,884				4,884				4,892				4,884
Period end outstanding (Series A Converted)			1,453				1,452				1,451				1,451				1,451				1,453				1,451
AVERAGE BALANCES
Total assets		$	784,353				761,143				731,198				718,591				716,736				772,805				714,056
Total earning assets		$	694,629				661,891				644,783				638,266				622,643				678,259				614,345
Total loans		$	596,724				568,925				549,877				538,646				521,477				582,824				518,756
Deposits		$	644,429				616,124				585,922				572,801				576,250				630,216				572,441
Stockholders equity		$	83,894				82,378				80,911				79,301				77,649				83,148				77,090
Intangibles		$	16,431				16,434				16,450				16,500				16,555				16,432				16,582
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	53,480				51,961				50,478				48,818				47,111				52,733				46,525
Average basic shares outstanding			4,893				4,896				4,890				4,884				4,884				4,894				4,882
Average diluted shares outstanding			6,390				6,401				6,396				6,390				6,382				6,396				6,381

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended June 30, 2016 and 2015

 

($ in Thousands)		Three Months Ended June 30, 2016												Three Months Ended June 30, 2015
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	82,418				392				1.90	%		$	83,414				395				1.89	%
Nontaxable securities			15,487				226				5.83	%			17,752				265				5.97	%
Loans, net			596,724				6,684				4.48	%			521,477				5,849				4.49	%
Total earning assets			694,629				7,302				4.20	%			622,643				6,509				4.18	%
Cash and due from banks			34,704												42,580
Allowance for loan losses			(7,429	)											(6,943	)
Premises and equipment			19,192												16,113
Other assets			43,257												42,343
Total assets		$	784,353											$	716,736
Liabilities
Savings and interest bearing demand		$	345,418				127				0.15	%		$	312,229				83				0.11	%
Time deposits			185,674				520				1.12	%			164,843				417				1.01	%
Repurchase agreements & Other			15,066				4				0.11	%			14,254				4				0.11	%
Advances from Federal Home Loan Bank			21,176				77				1.45	%			30,044				94				1.25	%
Trust preferred securities			10,310				62				2.41	%			10,310				53				2.06	%
Total interest bearing liabilities			577,644				790				0.55	%			531,680				651				0.49	%
Non interest bearing demand			113,337				-								99,178				-
Total funding			690,981								0.46	%			630,858								0.41	%
Other liabilities			9,478												8,229
Total liabilities			700,459												639,087
Equity			83,894												77,649
Total liabilities and equity		$	784,353											$	716,736
Net interest income (tax equivalent basis)						$	6,512											$	5,858
Net interest income as a percent of average interest-earning assets											3.75	%											3.76	%

 

 

		Six Months Ended June 30, 2016												Six Months Ended June 30, 2015
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	79,517				794				2.00	%		$	77,680				767				1.97	%
Nontaxable securities			15,918				462				5.81	%			17,909				533				5.95	%
Loans, net			582,824				12,958				4.45	%			518,756				11,477				4.42	%
Total earning assets			678,259				14,214				4.19	%			614,345				12,777				4.16	%
Cash and due from banks			39,001												48,149
Allowance for loan losses			(7,274	)											(6,895	)
Premises and equipment			19,299												15,254
Other assets			43,520												43,203
Total assets		$	772,805											$	714,056
Liabilities
Savings and interest bearing demand		$	341,141				240				0.14	%		$	310,138				160				0.10	%
Time deposits			176,485				952				1.08	%			164,376				835				1.02	%
Repurchase agreements & Other			15,792				9				0.11	%			15,442				9				0.12	%
Advances from Federal Home Loan Bank			24,113				183				1.52	%			30,022				186				1.24	%
Trust preferred securities			10,310				121				2.35	%			10,310				104				2.02	%
Total interest bearing liabilities			567,841				1,505				0.53	%			530,288				1,294				0.49	%
Non interest bearing demand			112,590								0.44	%			97,927								0.41	%
Total funding			680,431
Other liabilities			9,226												8,751
Total liabilities			1,370,088												636,966
Equity			83,148												77,090
Total liabilities and equity		$	1,453,236											$	714,056
Net interest income (tax equivalent basis)						$	12,709											$	11,483
Net interest income as a percent of average interest-earning assets											3.75	%											3.74	%

 

 

11