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 2016 Results

 

Year-over-year earnings per share growth of 28% and loan growth of over 15%

 

DEFIANCE, Ohio, January 19, 2017 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, item and statement processing services, today reported earnings for the fourth-quarter and twelve-months ended December 31, 2016.

 

Fourth-quarter 2016 highlights over prior-year fourth quarter include:

 

●

Net income of $2.3 million, an increase of 24.0 percent, or $0.4 million

●

Return on average assets of 1.14 percent, up 11.8 percent, or 12 basis points

●

Diluted earnings per share (EPS) of $0.37, an increase of 27.6 percent, or $0.08 per share

●

Loan growth of $25.1 million, or 16.2 percent annualized

●

Deposit growth of $10.9 million, or 6.6 percent annualized

●

Fully Taxable Equivalent (FTE) net interest margin of 3.69 percent, down 7 basis points

●

Mortgage origination volume of $83.5 million, an increase of 24.3 percent, or $16.3 million; servicing portfolio of $899.7 million, up 16.5 percent, or $127.2 million

 

Full-year highlights over prior-year twelve months include:

 

●

Net income of $8.8 million, an increase of 15.3 percent, or $1.2 million

●

Return on average assets of 1.11 percent, up 4.7 percent, or 5 basis points

●

Diluted earnings per share of $1.38, an increase of 16.0 percent, or $0.19 per share

●

Loan growth of $86.8 million, or 15.6 percent

●

Deposit growth of $86.6 million, or 14.8 percent

●

Nonperforming assets to total assets ended the year at 65 basis points

 

Highlights		Three Months Ended												Twelve Months Ended
($000’s except ratios and share data)		Dec. 2016				Dec. 2015				% Change				Dec. 2016				Dec. 2015				% Change
Operating revenue		$	11,775			$	9,692				21.5	%		$	43,742			$	39,050				12.0	%
Interest income			7,512				6,622				13.4				29,051				25,927				12.0
Interest expense			865				646				33.9				3,198				2,584				23.8
Net interest income			6,647				5,976				11.2				25,853				23,343				10.8
Noninterest income			5,128				3,716				38.0				17,889				15,707				13.9
Noninterest expense			7,859				6,839				14.9				30,091				26,927				11.8
Net income			2,317				1,868				24.0				8,784				7,619				15.3
Earnings per diluted share			0.37				0.29				27.6				1.38				1.19				16.0
Net interest margin (FTE)			3.69	%			3.76	%			(1.9	)			3.75	%			3.78	%			(0.8	)
Return on average assets			1.14	%			1.02	%			11.8				1.11	%			1.06	%			4.7
Return on average equity			10.73	%			9.23	%			16.3				10.39	%			9.69	%			7.2

 

“SB Financial Group’s fourth-quarter results were strong, providing the best year-over-year earnings performance for our Company since 2003,” said Mark Klein, Chairman, President, and CEO of SB Financial. “Diluted EPS for the quarter was $0.37, up $0.08 or 28 percent, and the full year came in at $1.38, up $0.19 or 16 percent. In addition, our balance sheet grew this quarter with $25 million of loan growth and we originated $83.5 million of residential mortgage volume, all while maintaining a very healthy ratio of nonperforming assets at 65 basis points.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 21.5 percent from the fourth quarter of 2015, and up 0.8 percent from the linked quarter.

 

●

Net interest income was up 11.2 percent from the year-ago quarter, and flat to the linked quarter.

●

Net interest margin (FTE) was down 7 basis points from the year-ago quarter, and down 13 basis points from the linked quarter.

●

Noninterest income was up 38.0 percent from the year-ago quarter, and up 2.3 percent from the linked quarter.

●

Total operating revenue for the full year of 2016 was $43.7 million, compared to $39.1 million for the full year of 2015, which is a 12.0 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the fourth quarter of 2016 were $83.5 million, up $16.3 million, or 24.3 percent, from the year-ago quarter. Total sales of originated loans were $81.7 million, up $25.4 million, or 45.1 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 $3.3 million for the fourth quarter of 2016, compared to $1.8 million for the year-ago quarter, or an 89.5 percent increase. The mortgage servicing valuation adjustment for the fourth quarter 2016 was a positive $1.2 million, compared to a negative adjustment for the fourth quarter of 2015 of $0.1 million. The aggregate servicing valuation impairment ended the quarter at $0.2 million. The mortgage servicing portfolio at December 31, 2016, was $899.7 million, up $127.2 million, or 16.5 percent, from $772.5 million at December 31, 2015.

 

Mr. Klein noted, “Our highest origination year on record with volume of $383 million culminated with a fourth quarter performance that was higher than the prior year by 24 percent. Our $9.0 million in mortgage banking revenue for the year was all core earnings, and was higher by 23 percent than in 2015.”

 

Mortgage Banking ($000’s)
		Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015
Mortgage originations		$	83,469			$	117,209			$	110,210			$	71,941			$	67,149
Mortgage sales			81,689				101,147				95,150				59,383				56,302
Mortgage servicing portfolio			899,710				868,783				831,781				792,666				772,533
Mortgage servicing rights			8,422				6,887				6,494				6,608				7,152
Mortgage servicing revenue:
Loan servicing fees			553				531				505				491				476
OMSR amortization			(462	)			(397	)			(309	)			(170	)			(157	)
Net administrative fees			91				134				196				321				319
OMSR valuation adjustment			1,233				71				(469	)			(767	)			64
Net loan servicing fees			1,324				205				(273	)			(446	)			383
Gain on sale of mortgages			2,002				2,503				2,284				1,383				1,372
Mortgage banking revenue, net		$	3,326			$	2,708			$	2,011			$	937			$	1,755

 

 

Noninterest 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 under our care stood at $378.1 million as of December 31, 2016. For the fourth quarter of 2016, fee income as a percentage of total revenue was 43.6 percent. The recapture of servicing rights positively impacted the quarter by $1.2 million.

 

For the fourth quarter of 2016, noninterest expense (NIE) of $7.9 million, was up $1.0 million, or 14.9 percent, compared to the same quarter last year. New branch locations and increased support in the Company’s compliance and mortgage divisions raised staffing levels by 6.1 percent. We also had higher commission expenses related to our mortgage loan volume. Compared to the linked quarter, NIE was down $0.1 million, or 0.9 percent.

 

Mr. Klein stated, “The servicing rights impairment recapture of $1.2 million was an important factor in quarterly results, however the net effect of that item over all of 2016 was minimal. We continue to have solid fee income contributions from all of our business lines. Our pipeline in SBA is very strong and we expect to expand loan sale gains in the coming quarters.”

 

Noninterest Income / Noninterest Expense ($000’s)
		Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015
Noninterest Income (NII)		$	5,128			$	5,015			$	4,307			$	3,439			$	3,716
NII / Total Revenue			43.6	%			42.9	%			40.1	%			36.0	%			38.3	%
NII / Average Assets			2.5	%			2.5	%			2.2	%			1.8	%			2.0	%
Noninterest Expense (NIE)		$	7,859			$	7,930			$	7,407			$	6,895			$	6,839
Efficiency Ratio			66.7	%			67.8	%			69.0	%			72.2	%			70.2	%
NIE / Average Assets			3.9	%			4.0	%			3.8	%			3.6	%			3.7	%
Net Noninterest Expense			(1.3	)			(1.5	)			(1.6	)			(1.8	)			(1.7	)

 

 

Balance Sheet

 

Total assets as of December 31, 2016, were $816.0 million, up $82.9 million, or 11.3 percent, from a year ago. Total equity as of December 31, 2016, was $86.5 million, up 6.5 percent, from a year ago, and was at 10.6 percent of total assets.

 

Total loans held for investment were $644.4 million at December 31, 2016, up $86.8 million, or 15.6 percent, from December 31, 2015. Commercial real estate loans were up $41.9 million, or 17.3 percent, and accounted for the majority of the total loan growth., Commercial (C & I) and Residential real estate loans also rose $22.5 million and $11.6 million, or 26.0 percent and 8.9 percent, respectively.

 

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $93.9 million represented 11.5 percent of assets at December 31, 2016, and was flat to the year-ago period. Deposit balances of $673.1 million at December 31, 2016, increased by $86.6 million, or 14.8 percent, since December 31, 2015. Growth from the prior year included $17.2 million in checking and $69.4 million in savings and time deposit balances.

 

Mr. Klein said, “The $25 million of loan growth for the quarter brought our total for 2016 to $87 million, which is a 15 percent growth rate. Our asset quality remains top-tier with our allowance coverage of non-performing loans increasing to a strong 179 percent.”

 

Loan Portfolio ($000’s)		Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Variance YOY
Commercial		$	109,087			$	101,245			$	100,651			$	92,086			$	86,586			$	22,501
% of Total			16.9	%			16.4	%			16.6	%			16.0	%			15.5	%			26.0	%
Commercial RE			284,084				268,408				261,923				256,461				242,208				41,876
% of Total			44.1	%			43.3	%			43.3	%			44.4	%			43.4	%			17.3	%
Agriculture			52,475				54,609				52,375				42,467				43,835				8,640
% of Total			8.2	%			8.8	%			8.7	%			7.4	%			7.9	%			19.7	%
Residential RE			142,452				139,757				135,506				132,627				130,806				11,646
% of Total			22.1	%			22.6	%			22.4	%			23.0	%			23.5	%			8.9	%
Consumer & Other			56,335				55,333				54,321				53,493				54,224				2,111
% of Total			8.7	%			8.9	%			9.0	%			9.3	%			9.7	%			3.9	%
Total Loans		$	644,433			$	619,352			$	604,776			$	577,134			$	557,659			$	86,774
Total Growth Percentage																							15.6	%

 

Deposit Bal. ($000’s)		Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Variance YOY
Non-Int DDA		$	125,189			$	116,976			$	110,899			$	112,209			$	113,113			$	12,076
% of Total			18.6	%			17.7	%			17.1	%			17.6	%			19.3	%			10.7	%
Interest DDA			131,598				135,729				129,658				138,235				126,443				5,155
% of Total			19.5	%			20.5	%			20.0	%			21.7	%			21.6	%			4.1	%
Savings			95,594				89,265				84,975				86,038				83,447				12,147
% of Total			14.2	%			13.5	%			13.1	%			13.5	%			14.2	%			14.6	%
Money Market			122,976				126,501				134,365				120,672				104,412				18,564
% of Total			18.3	%			19.1	%			20.7	%			18.9	%			17.8	%			17.8	%
Certificates			197,716				193,673				188,403				180,874				159,038				38,678
% of Total			29.4	%			29.3	%			29.1	%			28.4	%			27.1	%			24.3	%
Total Deposits		$	673,073			$	662,144			$	648,300			$	638,028			$	586,453			$	86,620
Total Growth Percentage																							14.8	%

 

Asset Quality

 

SB Financial returned to high-performing peer asset quality levels during the quarter, reporting non-performing assets of $5.3 million as of December 31, 2016, down $3.1 million, or 36.9 percent, from the year-ago quarter. The decrease from the prior year resulted from the full principal payoff of an existing delinquent commercial real estate credit that moved through foreclosure with full principal payoff. SB Financial’s nonperforming assets to total assets of 0.65 percent is in the top quartile of its 65-bank peer group. The coverage of problem loans by the loan loss allowance was at 178.5 percent at December 31, 2016, up from the 85.8 percent at December 31, 2015.

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Category		Dec. 2016				Sep. 2016				Jun. 2016				Mar. 2016				Dec. 2015				Variance YOY
Commercial & Agriculture		$	194			$	151			$	158			$	164			$	196			$	(2	)
% of Total Com./Ag. loans			0.12	%			0.10	%			0.12	%			0.12	%			0.15	%			(1.0	%)
Commercial RE			1,194				1,393				5,309				5,218				5,670				(4,476	)
% of Total CRE loans			0.42	%			0.52	%			2.02	%			2.03	%			2.34	%			(78.9	%)
Residential RE			1,162				1,152				1,088				1,156				749				413
% of Total Res. RE loans			0.82	%			0.82	%			0.80	%			0.87	%			0.57	%			55.1	%
Consumer & Other			187				193				138				46				32				155
% of Total Con./Oth. loans			0.33	%			0.35	%			0.25	%			0.09	%			0.06	%			N/M
Total Nonaccruing Loans			2,737				2,889				6,693				6,584				6,646				(3,909	)
% of Total loans			0.43	%			0.47	%			1.11	%			1.14	%			1.19	%			(58.8	%)
Accruing Restructured Loans			1,590				1,588				1,381				1,482				1,500
Total Nonaccruing & Restructured Loans		$	4,327			$	4,477			$	8,074			$	8,066			$	8,146			$	(3,819	)
% of Total loans			0.67	%			0.72	%			1.34	%			1.40	%			1.46	%			(46.9	%)
Foreclosed Assets			994				73				157				406				286
Total Nonperforming Assets		$	5,321			$	4,550			$	8,231			$	8,472			$	8,432			$	(3,111	)
% of Total assets			0.65	%			0.57	%			1.04	%			1.09	%			1.15	%			(36.9	%)

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on January 20, 2017, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.

 

 

About SB Financial Group

 

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company with two operating subsidiaries: State Bank and Diverse Computer Marketeres (DCM). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 19 banking centers; 18 in nine Ohio counties and one center in Fort Wayne, Indiana, and 22 full-service ATMs. The Company has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. DCM provides item processing and statement production services to community banks located primarily in the Midwest. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.  SB Financial’s preferred stock is listed on the NASDAQ Capital Market under the symbol “SBFGP”.  

 

In May 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)

 

		December				September				June				March				December
($ in Thousands)		2016				2016				2016				2016				2015
ASSETS
Cash and due from banks		$	17,012				25,167				29,945				35,529				20,459
Securities available for sale, at fair value			90,129				92,689				92,472				97,990				89,789
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			93,877				96,437				96,220				101,738				93,537
Loans held for sale			4,434				5,865				8,441				6,890				7,516
Loans, net of unearned income			644,433				619,352				604,776				577,134				557,659
Allowance for loan losses			(7,725	)			(7,320	)			(7,450	)			(7,205	)			(6,990	)
Net loans			636,708				612,032				597,326				569,929				550,669
Premises, equipment and software, net			19,129				18,673				18,806				18,994				19,010
Cash surrender value of life insurance			13,725				13,653				13,581				13,509				13,437
Goodwill & other intangibles			16,422				16,426				16,429				16,432				16,435
Foreclosed assets held for sale, net			994				73				157				406				286
Mortgage servicing rights			8,422				6,887				6,494				6,608				7,152
Accrued interest receivable			1,512				1,641				1,397				1,489				1,260
Other assets			3,770				4,946				4,367				3,296				3,310
Total assets		$	816,005				801,800				793,163				774,820				733,071
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	125,189				116,976				110,899				112,209				113,113
Interest bearing demand			131,598				135,729				129,658				138,235				126,443
Savings			95,594				89,265				84,975				86,038				83,447
Money market			122,976				126,501				134,365				120,672				104,412
Time deposits			197,716				193,673				188,403				180,874				159,038
Total deposits			673,073				662,144				648,300				638,028				586,453
Advances from Federal Home Loan Bank			26,500				23,000				23,000				21,000				35,000
Repurchase agreements			10,532				11,363				17,797				14,524				12,406
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			408				427				384				343				264
Other liabilities			8,634				8,293				8,422				7,564				7,397
Total liabilities			729,457				715,537				708,213				691,769				651,830
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			15,362				15,370				15,367				15,365				15,438
Retained earnings			46,688				44,933				42,925				41,199				40,059
Accumulated other comprehensive income			51				1,237				1,552				1,296				650
Treasury stock			(2,105	)			(1,829	)			(1,446	)			(1,361	)			(1,458	)
Total equity			86,548				86,263				84,950				83,051				81,241
Total liabilities and equity		$	816,005				801,800				793,163				774,820				733,071

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

		At and for the Three Months Ended																					Twelve Months Ended
		December				September				June				March				December					December				December
($ in thousands - except share data)		2016				2016				2016				2016				2015					2016				2015
Interest income
Loans
Taxable		$	7,059				6,954				6,648				6,260				6,086					26,921				23,692
Nontaxable			20				22				24				9				10					75				35
Securities
Taxable			289				378				392				402				357					1,461				1,506
Nontaxable			144				145				149				156				169					594				694
Total interest income			7,512				7,499				7,213				6,827				6,622					29,051				25,927
Interest expense
Deposits			709				677				647				545				492					2,578				1,979
Repurchase Agreements & Other			2				5				4				5				3					16				17
Federal Home Loan Bank advances			86				83				77				106				95					352				375
Trust preferred securities			68				63				62				59				56					252				213
Total interest expense			865				828				790				715				646					3,198				2,584
Net interest income			6,647				6,671				6,423				6,112				5,976					25,853				23,343
Provision for loan losses			500				-				-				250				150					750				1,100
Net interest income after provision for loan losses			6,147				6,671				6,423				5,862				5,826					25,103				22,243
Noninterest income
Wealth Management Fees			657				695				643				633				645					2,628				2,606
Customer service fees			653				692				680				680				711					2,705				2,779
Gain on sale of mtg. loans & OMSR's			2,002				2,503				2,284				1,383				1,372					8,172				6,264
Mortgage loan servicing fees, net			1,324				205				(273	)			(446	)			383					810				1,025
Gain on sale of non-mortgage loans			52				327				151				449				75					979				947
Data service fees			184				223				233				277				273					917				1,190
Net gain on sales of securities			-				59				92				111				-					262				-
Gain/(loss) on sale/disposal of assets			-				(31	)			186				22				38					177				18
Other income			256				342				311				330				219					1,239				878
Total non-interest income			5,128				5,015				4,307				3,439				3,716					17,889				15,707
Noninterest expense
Salaries and employee benefits			4,656				4,672				4,314				3,779				3,855					17,421				14,917
Net occupancy expense			533				523				524				565				479					2,145				1,943
Equipment expense			735				649				639				595				566					2,618				2,223
Data processing fees			384				352				339				305				264					1,380				1,060
Professional fees			404				380				326				316				381					1,426				1,663
Marketing expense			154				123				199				171				157					647				594
Telephone and communication			111				101				102				99				103					413				387
Postage and delivery expense			148				154				162				197				168					661				801
State, local and other taxes			154				170				171				99				130					594				517
Employee expense			182				117				128				118				126					545				543
Intangible amortization expense			3				3				3				3				37					12				200
Other expenses			395				686				500				648				573					2,229				2,079
Total non-interest expense			7,859				7,930				7,407				6,895				6,839					30,091				26,927
Income before income tax expense			3,416				3,756				3,323				2,406				2,703					12,900				11,023
Income tax expense			1,098				1,209				1,058				751				835					4,116				3,404
Net income		$	2,317				2,547				2,265				1,655				1,868					8,784				7,619
Preferred Stock Dividends			244				244				244				244				244					975				956
Net income available to common shares			2,073				2,303				2,021				1,411				1,624					7,809				6,663
Common share data:
Basic earnings per common share		$	0.43				0.47				0.41				0.29				0.33					1.60				1.36
Diluted earnings per common share		$	0.37				0.40				0.35				0.26				0.29					1.38				1.19
Average shares outstanding ($ in thousands):
Basic:			4,846				4,874				4,893				4,896				4,890					4,877				4,884
Diluted:			6,359				6,376				6,390				6,401				6,396					6,376				6,423

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

		At and for the Three Months Ended																					Twelve Months Ended
		December				September				June				March				December					December				December
($ in thousands, except per share data)		2016				2016				2016				2016				2015					2016				2015
SUMMARY OF OPERATIONS
Net interest income		$	6,647				6,671				6,423				6,112				5,976					25,853				23,343
Tax-equivalent adjustment		$	84				86				89				85				92					345				376
Tax-equivalent net interest income		$	6,731				6,757				6,512				6,197				6,068					26,198				23,719
Provision for loan loss		$	500				-				-				250				150					750				1,100
Noninterest income		$	5,128				5,015				4,307				3,439				3,716					17,889				15,707
Total operating revenue		$	11,775				11,686				10,730				9,551				9,692					43,742				39,050
Noninterest expense		$	7,859				7,930				7,407				6,895				6,839					30,091				26,927
Pre-tax pre-provision income		$	3,916				3,756				3,323				2,656				2,853					13,651				12,123
Pretax income		$	3,416				3,756				3,323				2,406				2,703					12,901				11,023
Net income		$	2,317				2,547				2,265				1,655				1,868					8,783				7,619
Income available to common shareholders		$	2,073				2,303				2,021				1,411				1,624					7,808				6,663
PER SHARE INFORMATION:
Basic earnings per share		$	0.43				0.47				0.41				0.29				0.33					1.60				1.36
Diluted earnings per share		$	0.37				0.40				0.35				0.26				0.29					1.38				1.19
Common dividends		$	0.065				0.060				0.060				0.055				0.055					0.240				0.200
Book value per common share		$	13.75				13.67				13.39				13.07				12.81					13.75				12.81
Tangible book value per common share		$	11.59				11.49				11.15				10.74				10.39					11.59				10.39
Market price per common share		$	16.05				12.53				10.87				10.31				11.14					16.05				11.14
Market price per preferred share		$	15.85				13.50				11.83				11.19				12.65					15.85				12.65
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.14	%			1.28	%			1.15	%			0.87	%			1.02	%				1.11	%			1.06	%
Pre-tax pre-provision ROAA			1.92	%			1.89	%			1.69	%			1.40	%			1.56	%				1.73	%			1.68	%
Return on average equity			10.72	%			11.90	%			10.80	%			8.03	%			9.23	%				10.39	%			9.69	%
Return on average tangible equity			16.54	%			18.45	%			16.94	%			12.74	%			14.80	%				16.23	%			15.84	%
Efficiency ratio			66.72	%			67.83	%			69.00	%			72.16	%			70.18	%				68.76	%			68.44	%
Earning asset yield			4.17	%			4.29	%			4.20	%			4.18	%			4.17	%				4.21	%			4.19	%
Cost of interest bearing liabilities			0.58	%			0.56	%			0.55	%			0.51	%			0.49	%				0.55	%			0.49	%
Net interest margin			3.64	%			3.77	%			3.69	%			3.69	%			3.71	%				3.70	%			3.72	%
Tax equivalent effect			0.05	%			0.05	%			0.06	%			0.06	%			0.05	%				0.05	%			0.06	%
Net interest margin, tax equivalent			3.69	%			3.82	%			3.75	%			3.75	%			3.76	%				3.75	%			3.78	%
Non interest income/Average assets			2.52	%			2.52	%			2.20	%			1.81	%			2.03	%				2.27	%			2.18	%
Non interest expense/Average assets			3.86	%			3.98	%			3.78	%			3.62	%			3.74	%				3.81	%			3.72	%
Net noninterest expense/Average assets			1.34	%			1.46	%			1.58	%			1.82	%			1.71	%				1.55	%			1.54	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	269				136				2				94				241					501				952
Recoveries		$	175				6				247				59				5					486				71
Net charge-offs		$	95				130				(245	)			35				236					15				881
Nonaccruing loans/ Total loans			0.42	%			0.47	%			1.11	%			1.14	%			1.19	%				0.42	%			1.19	%
Nonperforming loans/ Total loans			0.67	%			0.72	%			1.34	%			1.40	%			1.46	%				0.67	%			1.46	%
Nonperforming assets/ Loans & OREO			0.82	%			0.73	%			1.36	%			1.47	%			1.51	%				0.82	%			1.51	%
Nonperforming assets/ Total assets			0.65	%			0.57	%			1.04	%			1.09	%			1.15	%				0.65	%			1.15	%
Allowance for loan loss/ Nonperforming loans			178.53	%			163.50	%			92.27	%			89.33	%			85.81	%				178.53	%			85.81	%
Allowance for loan loss/ Total loans			1.20	%			1.18	%			1.23	%			1.25	%			1.25	%				1.20	%			1.25	%
Net loan charge-offs/ Average loans (ann.)			0.06	%			0.08	%			(0.16	%)			0.02	%			0.17	%				0.00	%			0.17	%
Loan loss provision/ Net charge-offs			526.32	%			0.00	%			0.00	%			714.29	%			63.56	%				5000.00	%			124.86	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			95.74	%			93.54	%			93.29	%			90.46	%			95.09	%				95.74	%			95.09	%
Equity/ Assets			10.61	%			10.76	%			10.71	%			10.72	%			11.08	%				10.61	%			11.08	%
Tangible equity/ Tangible assets			7.02	%			7.11	%			7.02	%			6.94	%			7.09	%				7.02	%			7.09	%
Tangible equity adjusted for conversion			8.77	%			8.89	%			8.82	%			8.78	%			9.04	%				8.77	%			9.04	%
END OF PERIOD BALANCES
Total assets		$	816,005				801,800				793,163				774,820				733,071					816,005				733,071
Total loans		$	644,433				619,352				604,776				577,134				557,659					644,433				557,659
Deposits		$	673,073				662,144				648,300				638,028				586,453					673,073				586,453
Stockholders equity		$	86,548				86,263				84,950				83,051				81,241					86,548				81,241
Goodwill & intangibles		$	16,422				16,426				16,429				16,432				16,435					16,422				16,435
Preferred equity		$	13,983				13,983				13,983				13,983				13,983					13,983				13,983
Tangible equity		$	56,143				55,854				54,538				52,636				50,823					56,143				50,823
Mortgage servicing portfolio		$	899,710				868,783				831,781				792,666				772,533					899,710				772,533
Wealth/Brokerage assets under care		$	378,131				375,787				367,223				357,531				353,488					378,131				353,488
Total assets under care		$	2,093,846				2,046,370				1,992,167				1,925,017				1,859,092					2,093,846				1,859,092
Full-time equivalent employees			227				224				223				218				214					227				214
Period end basic shares outstanding			4,844				4,860				4,892				4,900				4,891					4,844				4,891
Period end outstanding (Series A Converted)			1,452				1,452				1,452				1,452				1,451					1,452				1,451
AVERAGE BALANCES
Total assets		$	814,423				796,027				784,353				761,143				731,198					789,045				719,586
Total earning assets		$	729,525				707,679				694,629				661,891				644,783					698,541				628,047
Total loans		$	634,664				614,731				596,724				568,925				549,877					603,875				531,614
Deposits		$	672,226				650,751				644,429				616,124				585,922					645,847				575,840
Stockholders equity		$	86,433				85,616				83,894				82,378				80,911					84,540				78,618
Intangibles		$	16,424				16,427				16,431				16,434				16,450					16,429				16,529
Preferred equity		$	13,983				13,983				13,983				13,983				13,983					13,983				13,983
Tangible equity		$	56,026				55,206				53,480				51,961				50,478					54,128				48,106
Average basic shares outstanding			4,846				4,874				4,893				4,896				4,890					4,877				4,884
Average diluted shares outstanding			6,359				6,376				6,390				6,401				6,396					6,376				6,423

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Twelve Months Ended December 31, 2016 and 2015

 

($ in Thousands)		Three Months Ended Dec. 31, 2016												Three Months Ended Dec. 31, 2015
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	80,000				289				1.45	%		$	77,944				357				1.83	%
Nontaxable securities			14,861				218				5.87	%			16,962				256				6.04	%
Loans, net			634,664				7,089				4.47	%			549,877				6,101				4.44	%
Total earning assets			729,525				7,596				4.17	%			644,783				6,714				4.17	%
Cash and due from banks			29,322												32,284
Allowance for loan losses			(7,511	)											(7,100	)
Premises and equipment			18,981												17,974
Other assets			44,106												43,257
Total assets		$	814,423											$	731,198
Liabilities
Savings and interest bearing demand		$	349,892				143				0.16	%		$	314,959				95				0.12	%
Time deposits			196,645				566				1.15	%			159,777				397				0.99	%
Repurchase agreements & Other			11,493				2				0.07	%			14,527				3				0.08	%
Advances from Federal Home Loan Bank			24,348				86				1.41	%			29,897				95				1.27	%
Trust preferred securities			10,310				68				2.64	%			10,310				56				2.17	%
Total interest bearing liabilities			592,688				865				0.58	%			529,470				646				0.49	%
Non interest bearing demand			125,689				-								111,186				-
Total funding			718,377								0.48	%			640,656								0.40	%
Other liabilities			9,613												9,631
Total liabilities			727,990												650,287
Equity			86,433												80,911
Total liabilities and equity		$	814,423											$	731,198
Net interest income (tax equivalent basis)						$	6,731											$	6,068
Net interest income as a percent of average interest-earning assets											3.69	%											3.76	%

 

		Twelve Months Ended Dec. 31, 2016												Twelve Months Ended Dec. 31, 2015
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	79,301				1,461				1.84	%		$	78,840				1,506				1.91	%
Nontaxable securities			15,365				900				5.86	%			17,593				1,052				5.98	%
Loans, net			603,875				27,035				4.48	%			531,614				23,745				4.47	%
Total earning assets			698,541				29,396				4.21	%			628,047				26,303				4.19	%
Cash and due from banks			34,999												38,895
Allowance for loan losses			(7,389	)											(6,979	)
Premises and equipment			19,124												16,427
Other assets			43,770												43,196
Total assets		$	789,045											$	719,586
Liabilities
Savings and interest bearing demand		$	345,302				524				0.15	%		$	309,169				346				0.11	%
Time deposits			184,640				2,054				1.11	%			162,245				1,633				1.01	%
Repurchase agreements & Other			15,027				16				0.11	%			15,749				17				0.11	%
Advances from Federal Home Loan Bank			23,892				352				1.47	%			29,996				375				1.25	%
Trust preferred securities			10,310				252				2.44	%			10,310				213				2.07	%
Total interest bearing liabilities			579,171				3,198				0.55	%			527,469				2,584				0.49	%
Non interest bearing demand			115,905								0.46	%			104,426								0.41	%
Total funding			695,076												631,895
Other liabilities			9,429												9,073
Total liabilities			704,505												640,968
Equity			84,540												78,618
Total liabilities and equity		$	789,045											$	719,586
Net interest income (tax equivalent basis)						$	26,198											$	23,719
Net interest income as a percent of average interest-earning assets											3.75	%											3.78	%

 

 

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