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 2017 Results

 

Quarterly earnings per share growth of 73.0% and annual loan growth of 8%

 

DEFIANCE, Ohio, January 25, 2018 -- 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, and private client services, today reported earnings for the fourth-quarter and twelve-months ended December 31, 2017.

 

Fourth quarter highlights over prior-year fourth quarter include:

 

	●	Net income of $4.0 million, an increase of 74.0 percent, or $1.7 million
	●	Return on average assets of 1.83 percent
	●	Diluted earnings per share (EPS) of $0.64, an increase of 73.0 percent, or $0.27 per share
	●	Mortgage origination volume of $72.1 million, a decrease of 13.6 percent, or $11.4 million from $83.5 million
	●	Impact of Deferred Tax Liability recapture was an increase in net income of $1.7 million, or $0.27 per share

 

Twelve-months ended December 31, 2017 highlights over prior-year twelve months include:

 

	●	Net income of $11.1 million, an increase of 26.0 percent, or $2.3 million
	●	Return on average assets of 1.29 percent
	●	Diluted earnings per share (EPS) of $1.74, an increase of 26.1 percent, or $0.36 per share
	●	Total loan growth of $52.2 million, or 8.1 percent
	●	Total deposit growth of $56.5 million, or 8.4 percent
	●	Total residential mortgage volume of $315.8 million, down $67.0 million or 17.5 percent

  

Highlights		Three Months Ended												Twelve Months Ended
($000’s except ratios and share data)		Dec. 2017				Dec. 2016				% Change				Dec. 2017				Dec. 2016				% Change
Operating revenue		$	11,746			$	11,775				(.2	%)		$	45,603			$	43,742				4.3	%
Interest income			8,762				7,512				16.6				32,480				29,051				11.8
Interest expense			1,108				865				28.1				4,094				3,198				28.0
Net interest income			7,654				6,647				15.2				28,386				25,853				9.8
Noninterest income			4,092				5,128				(20.2	)			17,217				17,889				(3.8	)
Noninterest expense			8,106				7,859				3.1				31,578				30,091				4.9
Net income			4,032				2,317				74.0				11,065				8,784				26.0
Earnings per diluted share			0.64				0.37				73.0				1.74				1.38				26.1
Net interest margin (FTE)			3.96	%			3.69	%			7.3				3.78	%			3.75	%			0.8
Return on average assets			1.83	%			1.14	%			60.5				1.29	%			1.11	%			16.2
Return on average equity			17.52	%			10.73	%			63.4				12.36	%			10.39	%			19.0

 

 

“The recently enacted tax plan had a significant effect on earnings in the quarter as it added $1.7 million in net income or $0.27 per share to our results,” said Mark A. Klein, Chairman, President and CEO of SB Financial. “Excluding the positive tax impact, we were pleased to deliver another significant year of growth. Asset quality remained strong all year and as a result of our continued focus on diversity of revenue, we were able to offset the effects of lower mortgage volume in 2017 with our other, fee-based business lines.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue of $11.7 million, consisting of net interest income and noninterest income, was flat as compared to the fourth quarter of 2016, and down 3.1 percent from the linked quarter.

 

	●	Net interest income of $7.7 million, was up 15.2 percent from the year-ago quarter, and up 5.4 percent from the linked quarter.
	●	Net interest margin (FTE) of 3.96 percent, was up 27 basis points from the year-ago quarter, and up 15 basis points from the linked quarter.
	●	Noninterest income of $4.1 million was down 20.2 percent from the year-ago quarter, and down 15.8 percent from the linked quarter.
	●	Total revenue for the full year of 2017 was $45.6 million compared to $43.7 million for the full year of 2016, which is a 4.3 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the fourth quarter of 2017 were $72.1 million, down $11.40 million, or 13.6 percent, from the year-ago quarter. Total sales of originated loans were $53.8 million, down $27.9 million, or 34.1 percent from the year-ago quarter.

 

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.1 million for the fourth quarter of 2017, compared to $3.3 million for the year-ago quarter, or a 37.7 percent decrease. The mortgage servicing valuation adjustment for the fourth quarter of 2017 was a positive $0.12 million, compared to a positive adjustment of $1.2 million for the fourth quarter of 2016. The aggregate servicing valuation impairment ended the quarter at $0.2 million. The mortgage-servicing portfolio at December 31, 2017, was $994.9 million, up $95.2 million, or 10.6 percent, from $899.7 million at December 31, 2016.

 

“As we have said all year, our mortgage business has encountered increasing rates and decreasing availability of home inventory,” noted Mr. Klein. “Despite those challenges our mortgage team delivered over $315 million of volume in 2017, with 94 percent of that volume coming from new clients to the Company.”

 

 

Mortgage Banking ($000’s)
		Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016
Mortgage originations		$	72,102			$	89,217			$	97,804			$	56,667			$	83,469
Mortgage sales			53,825				76,919				80,038				50,473				81,689
Mortgage servicing portfolio			994,915				979,251				952,364				917,435				899,710
Mortgage servicing rights			9,907				9,560				9,217				8,727				8,422
Mortgage servicing revenue:
Loan servicing fees			617				605				583				566				553
OMSR amortization			(269	)			(343	)			(303	)			(218	)			(462	)
Net administrative fees			348				262				280				348				91
OMSR valuation adjustment			118				(35	)			(39	)			35				1,233
Net loan servicing fees			466				227				241				383				1,324
Gain on sale of mortgages			1,607				2,211				2,063				1,250				2,002
Mortgage banking revenue, net		$	2,073			$	2,438			$	2,304			$	1,633			$	3,326

 

Noninterest Income and Noninterest Expense

 

SB Financial’s noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees and the sale of small business loans (SBA). SBA activity for the quarter included total loan volume of $2.7 million with gains of $0.2 million. Wealth management assets under the Company’s care stood at $437.0 million, up $58.9 million or 15.6 percent. Noninterest income as a percentage of total revenue was 34.8 percent.

 

For the fourth quarter of 2017, noninterest expense (NIE) of $8.1 million was up $0.2 million, or 3.1 percent, compared to the same quarter last year. The increase was due mainly to staffing increases and higher marketing costs. Compared to the linked quarter, NIE was down $0.2 million, or 2.1 percent.

 

Mr. Klein stated, “During 2017, our non-mortgage business lines again produced solid results for the year, offsetting the decline in volume in residential real estate. Specifically, SBA gains for the quarter and year of $0.2 and $1.2 million respectively coupled with a nearly 16 percent growth in our assets under our care in our Wealth Management division, helped close the gap.”

 

Noninterest Income / Noninterest Expense ($000’s)
		Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016
Noninterest Income (NII)		$	4,092			$	4,861			$	4,462			$	3,802			$	5,128
NII / Total Revenue			34.8	%			40.1	%			39.1	%			36.9	%			43.6	%
NII / Average Assets			1.9	%			2.3	%			2.1	%			1.8	%			2.5	%
Noninterest Expense (NIE)		$	8,106			$	8,284			$	7,806			$	7,382			$	7,859
Efficiency Ratio			69.0	%			68.3	%			68.3	%			71.6	%			66.7	%
NIE / Average Assets			3.7	%			3.9	%			3.7	%			3.6	%			3.9	%
Net Noninterest Expense			(1.8	)			(1.6	)			(1.6	)			(1.7	)			(1.3	)

  

Balance Sheet

 

Total assets as of December 31, 2017, were $876.6 million, up $60.6 million, or 7.4 percent, from a year ago. Total equity as of December 31, 2017, was $94.0 million, up 8.6 percent from a year ago, and was at 10.7 percent of total assets.

 

 

Total loans held for investment were $696.6 million at December 31, 2017, up $52.2 million, or 8.1 percent, from December 31, 2016. Commercial real estate loans were up $48.1 million, or 16.9 percent, and accounted for the majority of the total loan growth. Residential real estate also rose $8.4 million, or 5.9 percent, from the prior period.

 

The investment portfolio of $86.5 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 9.9 percent of assets at December 31, 2017, and was down 7.8 percent from the year-ago period. Deposit balances of $729.6 million at December 31, 2017, increased by $56.5 million, or 8.4 percent, since December 31, 2016. Growth from the prior year included $9.9 million in checking and $46.6 million in savings and time deposit balances.

 

“Loan growth was strong for the quarter, up nearly $22 million, a 13 percent annualized rate,” said Mr. Klein. “Most importantly we were able to fund the bulk of our year-over-year loan growth with retail deposit balances and we look forward to continuing this momentum in 2018.”

 

Loan Portfolio ($000’s)		Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Variance YOY
Commercial		$	102,041			$	104,723			$	107,319			$	102,392			$	109,087			$	(7,046	)
% of Total			14.6	%			15.5	%			16.5	%			16.4	%			16.9	%			(6.5	%)
Commercial RE			332,154				319,764				296,116				282,951				284,084				48,070
% of Total			47.7	%			47.4	%			45.4	%			45.1	%			44.1	%			16.9	%
Agriculture			51,947				51,140				52,107				47,580				52,475				(528	)
% of Total			7.5	%			7.8	%			8.0	%			7.6	%			8.2	%			(1.0	%)
Residential RE			150,854				141,296				137,214				136,762				142,452				8,402
% of Total			21.7	%			20.9	%			21.1	%			21.8	%			22.1	%			5.9	%
Consumer & Other			59,619				58,152				58,833				57,037				56,335				3,284
% of Total			8.6	%			8.6	%			9.0	%			9.1	%			8.7	%			5.8	%
Total Loans		$	696,615			$	675,075			$	651,589			$	626,722			$	644,433			$	52,182
Total Growth Percentage																							8.1	%

 

Deposit Bal. ($000’s)		Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Variance YOY
Non-Int DDA		$	135,592			$	124,840			$	124,213			$	124,664			$	125,189			$	10,403
% of Total			18.6	%			17.4	%			17.6	%			17.5	%			18.6	%			8.3	%
Interest DDA			131,079				130,513				127,409				133,388				131,598				(519	)
% of Total			18.0	%			18.2	%			18.0	%			18.7	%			19.5	%			(0.4	%)
Savings			103,267				103,530				104,720				103,901				95,594				7,673
% of Total			14.2	%			14.4	%			14.8	%			14.6	%			14.2	%			8.0	%
Money Market			141,844				140,647				130,987				138,915				122,976				18,868
% of Total			19.4	%			19.6	%			18.5	%			19.5	%			18.3	%			15.3	%
Certificates			217,818				217,277				220,004				212,047				197,716				20,102
% of Total			29.9	%			30.3	%			31.1	%			29.7	%			29.4	%			10.2	%
Total Deposits		$	729,600			$	716,807			$	707,333			$	712,915			$	673,073			$	56,527
Total Growth Percentage																							8.4	%

 

 

Asset Quality

 

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $3.9 million as of December 31, 2017, down $1.5 million, or 27.5 percent, from the year-ago quarter. SB Financial’s nonperforming assets to total assets ratio of 0.44 percent is down from 0.65 percent at December 31, 2016. The coverage of problem loans by the loan loss allowance was at 206.9 percent at December 31, 2017, up from the 178.5 percent at December 31, 2016.

 

Summary of Nonperforming Assets ($000’s)  

 

Nonperforming Category		Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Dec. 2016				Variance YOY
Commercial & Agriculture		$	121			$	125			$	132			$	187			$	194			$	(73	)
% of Total Com./Ag. loans			0.08	%			0.08	%			0.08	%			0.13	%			0.12	%			(37.6	%)
Commercial RE			1,322				1,029				1,049				939				1,194				128
% of Total CRE loans			0.40	%			0.32	%			0.35	%			0.33	%			0.42	%			10.7	%
Residential RE			1,123				1,074				1,115				1,126				1,162				(39	)
% of Total Res. RE loans			0.74	%			0.76	%			0.81	%			0.82	%			0.82	%			(3.4	%)
Consumer & Other			138				153				154				130				187				(49	)
% of Total Con./Oth. loans			0.23	%			0.26	%			0.26	%			0.23	%			0.33	%			(26.2	%)
Total Nonaccruing Loans			2,704				2,381				2,450				2,382				2,737				(33	)
% of Total loans			0.39	%			0.35	%			0.38	%			0.38	%			0.42	%			(1.2	%)
Accruing Restructured Loans			1,129				1,258				1,366				1,383				1,590				(461	)
Total Nonaccruing & Restructured Loans		$	3,833			$	3,639			$	3,816			$	3,765			$	4,327			$	(494	)
% of Total loans			0.55	%			0.54	%			0.59	%			0.60	%			0.67	%			(11.4	%)
Foreclosed Assets			26				94				94				950				994				(968	)
Total Nonperforming Assets		$	3,859			$	3,733			$	3,910			$	4,715			$	5,321			$	(1,462	)
% of Total assets			0.44	%			0.43	%			0.46	%			0.56	%			0.65	%			(27.5	%)

 

“The quarter saw a reduction in our nonperforming ratio to just 44 basis points,” said Mr. Klein. “With net charge-offs for the year of $196,000, our sustained asset quality continues to be at the top of our peers, and we continue to strive toward top decile performance among this group.”

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on January 26, 2018, at 11:00 a.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.

 

About SB Financial Group

 

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 20 banking centers; 19 in nine Ohio counties and one center in Fort Wayne, Indiana, and 24 full-service ATMs. The Company has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.  SB Financial’s preferred stock is listed on the NASDAQ Capital Market under the symbol “SBFGP”.  

 

 

In May 2017, SB Financial was ranked #145 on the American Banker Magazine’s list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity (“ROE”).

 

Forward-Looking Statements

 

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

 

Non-GAAP Financial Measures

 

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

 

###

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		December				September				June				March				December
($ in Thousands)		2017				2017				2017				2017				2016
ASSETS
Cash and due from banks		$	26,616				28,258				21,385				45,740				17,012
Securities available for sale, at fair value			82,790				85,304				103,347				107,937				90,128
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			86,538				89,052				107,095				111,685				93,876
Loans held for sale			3,940				7,663				9,437				5,104				4,434
Loans, net of unearned income			696,615				675,075				651,589				626,722				644,433
Allowance for loan losses			(7,930	)			(7,760	)			(7,825	)			(7,679	)			(7,725	)
Net loans			688,685				667,315				643,764				619,043				636,708
Premises, equipment and software, net			21,277				21,271				20,740				19,909				19,129
Cash surrender value of life insurance			16,479				13,692				13,859				13,791				13,725
Goodwill & other intangibles			16,411				16,414				16,417				16,419				16,422
Foreclosed assets held for sale, net			26				94				94				950				994
Mortgage servicing rights			9,907				9,560				9,217				8,727				8,422
Accrued interest receivable			1,825				1,880				1,411				1,462				1,512
Other assets			4,923				5,263				4,249				4,018				3,771
Total assets		$	876,627				860,462				847,668				846,848				816,005
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	135,592				124,840				124,213				124,664				125,189
Interest bearing demand			131,079				130,513				127,409				133,388				131,598
Savings deposits			103,267				103,530				104,720				103,901				95,594
Money market deposits			141,844				140,647				130,987				138,915				122,976
Time deposits			217,818				217,277				220,004				212,047				197,716
Total deposits			729,600				716,807				707,333				712,915				673,073
Advances from Federal Home Loan Bank			18,500				20,500				20,500				15,500				26,500
Repurchase agreements			15,082				11,343				11,175				11,796				10,532
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			592				611				563				450				408
Other liabilities			8,543				9,982				8,756				7,849				8,634
Total liabilities			782,627				769,553				758,637				758,820				729,457
Equity
Preferred shares			13,983				13,983				13,983				13,983				13,983
Common shares			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,405				15,335				15,260				15,224				15,362
Retained earnings			55,416				51,991				49,851				48,118				46,688
Accumulated other comprehensive income			(118	)			335				340				136				51
Treasury shares			(3,255	)			(3,304	)			(2,972	)			(2,002	)			(2,105	)
Total equity			94,000				90,909				89,031				88,028				86,548
Total liabilities and equity		$	876,627				860,462				847,668				846,848				816,005

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands - except share data)		At and for the Three Months Ended																				Twelve Months Ended
		December				September				June				March				December				December				December
		2017				2017				2017				2017				2016				2017				2016
Interest income
Loans
Taxable		$	8,096				7,653				7,243				6,800				6,984				29,792				26,846
Nontaxable			23				21				21				20				20				85				75
Securities
Taxable			514				532				569				461				364				2,076				1,536
Nontaxable			129				132				133				133				144				527				594
Total interest income			8,762				8,338				7,966				7,414				7,512				32,480				29,051
Interest expense
Deposits			938				907				863				748				709				3,456				2,578
Repurchase Agreements & Other			2				4				6				4				2				16				16
Federal Home Loan Bank advances			85				86				63				86				86				320				352
Trust preferred securities			83				78				71				70				68				302				252
Total interest expense			1,108				1,075				1,003				908				865				4,094				3,198
Net interest income			7,654				7,263				6,963				6,506				6,647				28,386				25,853
Provision for loan losses			200				-				200				-				500				400				750
Net interest income after provision for loan losses			7,454				7,263				6,763				6,506				6,147				27,986				25,103
Noninterest income
Wealth Management Fees			718				688				704				667				657				2,777				2,628
Customer service fees			690				674				667				640				653				2,671				2,705
Gain on sale of mtg. loans & OMSR's			1,608				2,211				2,063				1,250				2,002				7,132				8,172
Mortgage loan servicing fees, net			465				227				241				383				1,324				1,316				810
Gain on sale of non-mortgage loans			122				294				369				430				52				1,215				979
Data service fees			179				182				184				193				184				738				917
Net gain on sales of securities			-				119				-				-				-				119				262
Gain/(loss) on sale/disposal of assets			(4	)			8				-				2				-				6				177
Other income			314				458				234				237				256				1,243				1,239
Total non-interest income			4,092				4,861				4,462				3,802				5,128				17,217				17,889
Noninterest expense
Salaries and employee benefits			4,749				4,844				4,667				4,386				4,656				18,646				17,421
Net occupancy expense			582				566				552				560				533				2,260				2,145
Equipment expense			748				688				683				641				735				2,760				2,618
Data processing fees			363				429				396				370				384				1,558				1,380
Professional fees			492				502				417				363				404				1,774				1,426
Marketing expense			153				180				206				195				154				734				647
Telephone and communication			113				120				113				116				111				462				413
Postage and delivery expense			118				103				59				174				148				454				661
State, local and other taxes			164				198				170				167				154				699				594
Employee expense			227				242				183				145				182				797				545
Other expenses			397				412				360				265				398				1,434				2,241
Total non-interest expense			8,106				8,284				7,806				7,382				7,859				31,578				30,091
Income before income tax expense			3,440				3,840				3,419				2,926				3,416				13,625				12,901
Income tax expense			(592	)			1,117				1,102				933				1,098				2,560				4,117
Net income		$	4,032				2,723				2,317				1,993				2,317				11,065				8,784
Preferred Share Dividends			244				244				244				244				244				975				975
Net income available to common shares			3,788				2,479				2,073				1,749				2,073				10,090				7,809
Common share data:
Basic earnings per common share		$	0.79				0.52				0.43				0.36				0.43				2.10				1.60
Diluted earnings per common share		$	0.64				0.43				0.37				0.31				0.37				1.74				1.38
Average shares outstanding ($ in thousands):
Basic:			4,790				4,797				4,827				4,855				4,846				4,817				4,877
Diluted:			6,329				6,326				6,351				6,387				6,359				6,351				6,376

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended																				Twelve Months Ended
		December				September				June				March				December				December				December
SUMMARY OF OPERATIONS		2017				2017				2017				2017				2016				2017				2016
Net interest income		$	7,654				7,263				6,963				6,506				6,647				28,386				25,853
Tax-equivalent adjustment		$	78				79				79				79				84				315				260
Tax-equivalent net interest income		$	7,732				7,342				7,042				6,585				6,731				28,701				26,113
Provision for loan loss		$	200				-				200				-				500				400				750
Noninterest income		$	4,092				4,861				4,462				3,802				5,128				17,217				17,889
Total operating revenue		$	11,746				12,124				11,425				10,308				11,775				45,603				43,742
Noninterest expense		$	8,106				8,284				7,806				7,382				7,859				31,578				30,091
Pre-tax pre-provision income		$	3,640				3,840				3,619				2,926				3,916				14,025				13,651
Pretax income		$	3,440				3,840				3,419				2,926				3,416				13,625				12,901
Net income		$	4,032				2,723				2,317				1,993				2,317				11,065				8,784
Income available to common shareholders		$	3,788				2,479				2,073				1,749				2,073				10,090				7,809
PER SHARE INFORMATION:
Basic earnings per share		$	0.79				0.52				0.43				0.36				0.43				2.10				1.60
Diluted earnings per share		$	0.64				0.43				0.37				0.31				0.37				1.74				1.38
Common dividends		$	0.075				0.070				0.070				0.065				0.065				0.280				0.240
Book value per common share		$	15.03				14.55				14.21				13.92				13.75				15.03				13.75
Tangible book value per common share		$	13.27				12.64				12.20				11.83				11.59				13.27				11.59
Market price per common share		$	18.49				17.16				16.88				16.72				16.05				18.49				16.05
Market price per preferred share		$	17.90				16.45				16.89				16.85				15.85				17.90				15.85
Market price to tangible book value			139.3	%			135.8	%			138.4	%			141.4	%			138.5	%			139.3	%			138.5	%
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.83	%			1.27	%			1.09	%			0.96	%			1.14	%			1.29	%			1.11	%
Pre-tax pre-provision ROAA			1.65	%			1.79	%			1.70	%			1.41	%			1.92	%			1.64	%			1.73	%
Return on average equity			17.52	%			12.11	%			10.45	%			9.13	%			10.72	%			12.36	%			10.39	%
Return on average tangible equity			26.16	%			18.28	%			15.91	%			14.00	%			16.54	%			18.71	%			16.23	%
Efficiency ratio			68.99	%			68.30	%			68.30	%			71.59	%			66.71	%			69.22	%			68.76	%
Earning asset yield			4.52	%			4.36	%			4.26	%			4.08	%			4.17	%			4.32	%			4.21	%
Cost of interest bearing liabilities			0.69	%			0.68	%			0.64	%			0.60	%			0.58	%			0.65	%			0.55	%
Net interest margin			3.92	%			3.77	%			3.69	%			3.55	%			3.64	%			3.74	%			3.70	%
Tax equivalent effect			0.04	%			0.04	%			0.04	%			0.04	%			0.05	%			0.04	%			0.05	%
Net interest margin, tax equivalent			3.96	%			3.81	%			3.73	%			3.59	%			3.69	%			3.78	%			3.75	%
Non interest income/Average assets			1.86	%			2.27	%			2.09	%			1.84	%			2.52	%			2.01	%			2.27	%
Non interest expense/Average assets			3.68	%			3.87	%			3.66	%			3.57	%			3.86	%			3.70	%			3.81	%
Net noninterest expense/Average assets			1.82	%			1.60	%			1.57	%			1.73	%			1.34	%			1.68	%			1.55	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	36				75				69				51				269				231				501
Recoveries		$	5				10				15				5				175				35				486
Net charge-offs		$	31				65				54				46				95				196				15
Nonaccruing loans/ Total loans			0.39	%			0.35	%			0.38	%			0.38	%			0.42	%			0.39	%			0.42	%
Nonperforming loans/ Total loans			0.55	%			0.54	%			0.59	%			0.60	%			0.67	%			0.55	%			0.67	%
Nonperforming assets/ Loans & OREO			0.55	%			0.55	%			0.60	%			0.75	%			0.82	%			0.55	%			0.82	%
Nonperforming assets/ Total assets			0.44	%			0.43	%			0.46	%			0.56	%			0.65	%			0.44	%			0.65	%
Allowance for loan loss/ Nonperforming loans			206.89	%			213.25	%			205.06	%			203.96	%			178.53	%			206.89	%			178.53	%
Allowance for loan loss/ Total loans			1.14	%			1.15	%			1.20	%			1.23	%			1.20	%			1.14	%			1.20	%
Net loan charge-offs/ Average loans (ann.)			0.02	%			0.04	%			0.03	%			0.03	%			0.06	%			0.03	%			0.00	%
Loan loss provision/ Net charge-offs			645.16	%			0.00	%			370.37	%			0.00	%			526.32	%			204.08	%			5000.00	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			95.48	%			94.18	%			92.12	%			87.91	%			95.74	%			95.48	%			95.74	%
Equity/ Assets			10.72	%			10.57	%			10.50	%			10.39	%			10.61	%			10.72	%			10.61	%
Tangible equity/ Tangible assets			7.39	%			7.17	%			7.05	%			6.94	%			7.02	%			7.39	%			7.02	%
Tangible equity adjusted for conversion			9.02	%			8.83	%			8.74	%			8.62	%			8.77	%			9.02	%			8.77	%
END OF PERIOD BALANCES
Total assets		$	876,627				860,462				847,668				846,848				816,005				876,627				816,005
Total loans		$	696,615				675,075				651,589				626,722				644,433				696,615				644,433
Deposits		$	729,600				716,807				707,333				712,915				673,073				729,600				673,073
Stockholders equity		$	94,000				90,909				89,031				88,028				86,548				94,000				86,548
Goodwill & intangibles		$	16,411				16,414				16,417				16,419				16,422				16,411				16,422
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	63,606				60,512				58,631				57,626				56,143				63,606				56,143
Mortgage servicing portfolio		$	994,915				979,251				952,364				917,435				899,710				994,915				899,710
Wealth/Brokerage assets under care		$	437,034				429,777				407,268				404,290				378,131				437,034				378,131
Total assets under care		$	2,308,576				2,269,490				2,207,300				2,168,573				2,093,846				2,308,576				2,093,846
Full-time equivalent employees			240				237				237				231				227				240				227
Period end basic shares outstanding			4,793				4,788				4,807				4,873				4,844				4,793				4,844
Period end outstanding (Series A Converted)			1,463				1,461				1,459				1,452				1,452				1,463				1,452
AVERAGE BALANCES
Total assets		$	880,446				857,147				852,526				827,514				814,423				854,569				789,045
Total earning assets		$	781,795				771,722				754,736				734,378				729,525				759,681				698,541
Total loans		$	691,929				667,943				644,658				637,490				634,664				660,675				603,875
Deposits		$	731,992				712,614				717,472				683,639				672,226				711,500				645,847
Stockholders equity		$	92,036				89,974				88,637				87,344				86,433				89,538				84,540
Intangibles		$	16,412				16,415				16,418				16,421				16,424				16,417				16,429
Preferred equity		$	13,983				13,983				13,983				13,983				13,983				13,983				13,983
Tangible equity		$	61,641				59,576				58,236				56,940				56,026				59,138				54,128
Average basic shares outstanding			4,790				4,797				4,827				4,855				4,846				4,817				4,877
Average diluted shares outstanding			6,329				6,326				6,351				6,387				6,359				6,351				6,376

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Twelve Months Ended December 31, 2017 and 2016

 

($ in Thousands)		Three Months Ended Dec. 31, 2017												Three Months Ended Dec. 31, 2016
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	76,268				514				2.70	%		$	80,000				364				1.82	%
Nontaxable securities			13,598				195				5.75	%			14,861				218				5.87	%
Loans, net			691,929				8,131				4.70	%			634,664				7,014				4.42	%
Total earning assets			781,795				8,840				4.52	%			729,525				7,596				4.16	%
Cash and due from banks			37,141												29,322
Allowance for loan losses			(7,842	)											(7,511	)
Premises and equipment			21,424												18,981
Other assets			47,928												44,106
Total assets		$	880,446											$	814,423
Liabilities
Savings and interest bearing demand		$	378,278				219				0.23	%		$	349,892				143				0.16	%
Time deposits			216,969				719				1.33	%			196,645				566				1.15	%
Repurchase agreements & Other			13,220				2				0.06	%			11,493				2				0.07	%
Advances from Federal Home Loan Bank			20,283				85				1.68	%			24,348				86				1.41	%
Trust preferred securities			10,310				83				3.22	%			10,310				68				2.64	%
Total interest bearing liabilities			639,060				1,108				0.69	%			592,688				865				0.58	%
Non interest bearing demand			136,745				-								125,689				-
Total funding			775,805								0.57	%			718,377								0.48	%
Other liabilities			12,605												9,613
Total liabilities			788,410												727,990
Equity			92,036												86,433
Total liabilities and equity		$	880,446											$	814,423
Net interest income (tax equivalent basis)						$	7,732											$	6,731
Net interest income as a percent of average interest-earning assets											3.96	%											3.69	%

 

 

		Twelve Months Ended Dec. 31, 2017												Twelve Months Ended Dec. 31, 2016
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	84,918				2,076				2.44	%		$	79,301				1,536				1.94	%
Nontaxable securities			14,088				798				5.67	%			15,365				900				5.86	%
Loans, net			660,675				29,921				4.53	%			603,875				26,960				4.46	%
Total earning assets			759,681				32,795				4.32	%			698,541				29,396				4.21	%
Cash and due from banks			35,337												34,999
Allowance for loan losses			(7,828	)											(7,389	)
Premises and equipment			21,084												19,124
Other assets			46,295												43,770
Total assets		$	854,569											$	789,045
Liabilities
Savings and interest bearing demand		$	369,114				795				0.22	%		$	345,302				524				0.15	%
Time deposits			214,639				2,661				1.24	%			184,640				2,054				1.11	%
Repurchase agreements & Other			12,350				16				0.13	%			15,027				16				0.11	%
Advances from Federal Home Loan Bank			20,000				320				1.60	%			23,892				352				1.47	%
Trust preferred securities			10,310				302				2.93	%			10,310				252				2.44	%
Total interest bearing liabilities			626,413				4,094				0.65	%			579,171				3,198				0.55	%
Non interest bearing demand			127,747								0.54	%			115,905								0.46	%
Total funding			754,160												695,076
Other liabilities			10,871												9,429
Total liabilities			765,031												704,505
Equity			89,538												84,540
Total liabilities and equity		$	854,569											$	789,045
Net interest income (tax equivalent basis)						$	28,701											$	26,198
Net interest income as a percent of average interest-earning assets											3.78	%											3.75	%