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 Strong First-Quarter 2018 Earnings

 

Year-over-year earnings per share growth of 13% and loan growth of 13%

 

DEFIANCE, Ohio, April 19, 2018 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking and wealth management, today reported earnings for the first-quarter ended March 31, 2018.

 

First-quarter 2018 highlights over prior-year first quarter include:

 

●

Total assets increased to $925.6 million, up $78.8 million or 9.3 percent

●

Net income of $2.5 million, an increase of 23.1 percent

●

Operating revenue of $11.9 million, up $1.6 million or 15.9 percent

●

Return on average assets of 1.08 percent, up 12 basis points or 12.5 percent

●

Diluted earnings per share (EPS) of $0.35, an increase of $0.04 per share, or 12.9 percent

 

First-quarter 2018 trailing twelve-month highlights include:

 

●

Loan growth of $80.5 million, or 12.8 percent

●

Deposit growth of $35.9 million, or 5.0 percent

●

Mortgage origination volume of $58.5 million, an increase of 3.2 percent, or $1.8 million; servicing portfolio of $1.00 billion, up 9.5 percent, or $0.09 billion

 

Highlights		Three Months Ended
($000’s except ratios and share data)		Mar. 2018				Mar. 2017				% Change
Operating revenue		$	11,943			$	10,308				15.9	%
Interest income			8,851				7,414				19.4
Interest expense			1,151				908				26.8
Net interest income			7,700				6,506				18.4
Noninterest income			4,243				3,802				11.6
Noninterest expense			8,627				7,382				16.9
Net income			2,453				1,993				23.1
Earnings per diluted share			0.35				0.31				12.9
Net interest margin (FTE)			3.86	%			3.59	%			7.5
Return on average assets			1.08	%			0.96	%			12.5
Return on average equity			9.03	%			9.13	%			(1.1	)

 

“SB Financial Group’s first-quarter diluted EPS was up 13 percent compared to the prior-year quarter. The quarter included not only the impact of the 2017 tax cuts but also the increased number of shares as a result of our capital raise that we completed in February,” said Mark A. Klein, Chairman, President and CEO of SB Financial. Operating results included a strong SBA quarter, 13 percent year-over-year loan growth and improved asset quality metrics.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 15.9 percent from the first quarter of 2017, and up 1.7 percent from the linked quarter.

 

●

Net interest income was up 18.3 percent from the year-ago quarter, and up 0.6 percent from the linked quarter.

●

Net interest margin (FTE) was up 27 basis points from the year-ago quarter, but down 10 basis points from the linked quarter. The year-over-year increase was due to higher loan volume, and higher earning asset yields.

●

Noninterest income was up 11.6 percent from the year-ago quarter, and up 3.7 percent from the linked quarter.

 

Mortgage Loan Business

 

Mortgage loan originations for the first quarter of 2018 were $58.5 million, up $1.8 million, or 3.2 percent, from the year-ago quarter. Total sales of originated loans were $40.6 million, down $9.9 million, or 19.6 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 $1.6 million for the first quarter of 2018, compared to $1.6 million for the year-ago quarter. The mortgage servicing valuation adjustment for the first quarter 2018 was a positive $0.09 million, compared to a positive adjustment of $0.03 million for the first quarter of 2017. The aggregate servicing valuation impairment ended the quarter at $0.2 million. The mortgage servicing portfolio at March 31, 2018, was $1.00 billion, up $0.09 billion, or 9.5 percent, from $0.92 billion at March 31, 2017.

 

Mr. Klein noted, “We continue to see the mortgage origination business constrained by limited housing inventory in all of our markets. We are encouraged, however, by the significant increase in our pipeline late in the quarter.”

 

Mortgage Banking ($000’s)
		Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017
Mortgage originations		$	58,485			$	72,102			$	89,217			$	97,804			$	56,667
Mortgage sales			40,589				53,825				76,919				80,038				50,473
Mortgage servicing portfolio			1,004,728				994,915				979,251				952,364				917,435
Mortgage servicing rights			10,195				9,907				9,560				9,217				8,727
Mortgage servicing revenue:
Loan servicing fees			625				617				605				583				566
OMSR amortization			(246	)			(269	)			(343	)			(303	)			(218	)
Net administrative fees			379				348				262				280				348
OMSR valuation adjustment			92				117				(35	)			(39	)			35
Net loan servicing fees			471				465				227				241				383
Gain on sale of mortgages			1,100				1,608				2,211				2,063				1,250
Mortgage banking revenue, net		$	1,571			$	2,073			$	2,438			$	2,304			$	1,633

 

Noninterest Income and Noninterest Expense

 

SB Financial’s noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales and the sale of Small Business Administration loans (SBA). SBA activity for the quarter was significant, with total loan volume of $10.6 million and gains of $0.6 million. Wealth management assets under the Company’s care stood at $411.7 million as of March 31, 2018. For the first quarter of 2018, noninterest income as a percentage of total revenue was 35.5 percent. The recapture of mortgage servicing rights positively impacted the quarter by $0.09 million. The Company completed the sale of our item processing division, DCM, in the quarter, resulting in total revenue of $0.4 million, slightly above the prior year.

 

 

For the first quarter of 2018, noninterest expense (NIE) of $8.6 million, was up $1.2 million, or 16.9 percent, compared to the same quarter last year. In the quarter, we had higher commission for SBA sales, (of $0.1 million) expenses related to the sale of DCM (of $0.2 million) and several of the previously announced tax initiatives (of $0.2 million). Compared to the linked quarter, NIE was up $0.5 million, or 6.4 percent.

 

Mr. Klein stated, “We sold several large SBA credits in the quarter that had been in process for some time, this resulted in our largest SBA production quarter since we expanded this business line in 2014. The sale of DCM, while immaterial to our results, allows our team to focus on our core banking competencies. Expenses were also higher but we were proud to share some of our tax savings with our staff and communities.”

 

Noninterest Income / Noninterest Expense ($000’s)
		Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017
Noninterest Income (NII)		$	4,243			$	4,092			$	4,861			$	4,462			$	3,802
NII / Total Revenue			35.5	%			34.8	%			40.1	%			39.1	%			36.9	%
NII / Average Assets			1.9	%			1.9	%			2.3	%			2.1	%			1.8	%
Noninterest Expense (NIE)		$	8,627			$	8,106			$	8,284			$	7,806			$	7,382
Efficiency Ratio			72.2	%			69.0	%			68.3	%			68.3	%			71.6	%
NIE / Average Assets			3.8	%			3.7	%			3.9	%			3.7	%			3.6	%
Net Noninterest Expense			(1.9	)			(1.8	)			(1.6	)			(1.6	)			(1.7	)

 

Balance Sheet

 

Total assets as of March 31, 2018, were $925.6 million, up $78.8 million, or 9.3 percent, from a year ago. Total equity as of March 31, 2018, was $122.9 million, up 39.7 percent, from a year ago, and accounted for 13.3 percent of total assets. Both the equity and total assets reflect the $30 million common capital raise completed in the quarter.

 

Total loans held for investment were $707.2 million at March 31, 2018, up $80.5 million, or 12.8 percent, from March 31, 2017. Commercial real estate loans were up $55.6 million, or 19.7 percent, and accounted for the majority of the total loan growth, while residential real estate also rose $15.1 million or 11.0 percent.

 

The investment portfolio of $95.7 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 10.3 percent of assets at March 31, 2018, and was down 14.3 percent from the year-ago period. Deposit balances of $748.8 million at March 31, 2018, increased by $35.9 million, or 5.0 percent, since March 31, 2017. Growth from the prior year included $12.8 million in checking and $23.1 million in savings and time deposit balances.

 

“Along with the $11 million in SBA production, we had additional balance sheet loan growth in the quarter of $11 million. Our $30 million increase in capital reflected the very positive response we experienced from our capital raise in February. Additionally, we continued to improve asset quality in the quarter, with net charge offs at just 1 basis point and nonperforming assets at 38 basis points.”

 

Loan Portfolio ($000’s)		Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Variance YOY
Commercial		$	107,579			$	102,041			$	104,723			$	107,319			$	102,392			$	5,187
% of Total			15.2	%			14.6	%			15.5	%			16.5	%			16.4	%			5.1	%
Commercial RE			338,586				332,154				319,764				296,116				282,951				55,635
% of Total			47.9	%			47.7	%			47.4	%			45.4	%			45.1	%			19.7	%
Agriculture			50,266				51,947				51,140				52,107				47,580				2,686
% of Total			7.1	%			7.5	%			7.8	%			8.0	%			7.6	%			5.6	%
Residential RE			151,820				150,854				141,296				137,214				136,762				15,058
% of Total			21.5	%			21.7	%			20.9	%			21.1	%			21.8	%			11.0	%
Consumer & Other			58,956				59,619				58,152				58,833				57,037				1,919
% of Total			8.3	%			8.6	%			8.6	%			9.0	%			9.1	%			3.4	%
Total Loans		$	707,207			$	696,615			$	675,075			$	651,589			$	626,722			$	80,485
Total Growth Percentage																							12.8	%

 

 

Deposit Bal. ($000’s)		Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Variance YOY
Non-Int DDA		$	132,919			$	135,592			$	124,840			$	124,213			$	124,664			$	8,255
% of Total			17.8	%			18.6	%			17.4	%			17.6	%			17.5	%			6.6	%
Interest DDA			137,893				131,079				130,513				127,409				133,388				4,511
% of Total			18.4	%			18.0	%			18.2	%			18.0	%			18.7	%			3.4	%
Savings			116,820				103,267				103,530				104,720				103,901				12,919
% of Total			15.6	%			14.2	%			14.4	%			14.8	%			14.6	%			12.4	%
Money Market			143,679				141,844				140,647				130,987				138,915				4,764
% of Total			19.2	%			19.4	%			19.6	%			18.5	%			19.5	%			3.4	%
Certificates			217,484				217,818				217,277				220,004				212,047				5,437
% of Total			29.0	%			29.9	%			30.3	%			31.1	%			29.7	%			2.6	%
Total Deposits		$	748,795			$	729,600			$	716,807			$	707,333			$	712,915			$	35,880
Total Growth Percentage																							5.0	%

 

Asset Quality

 

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting nonperforming assets of $3.5 million as of March 31, 2018, down $1.2 million, or 25.6 percent, from the year-ago quarter. SB Financial’s nonperforming assets to total assets ratio of 0.38 percent is in the top quartile of its 65-bank peer group. The coverage of problem loans by the loan loss allowance was at 239 percent at March 31, 2018, up from 204 percent at March 31, 2017.

 

Summary of Nonperforming Assets ($000’s)
Nonperforming Category		Mar. 2018				Dec. 2017				Sep. 2017				Jun. 2017				Mar. 2017				Variance YOY
Commercial & Agriculture		$	35			$	121			$	125			$	132			$	187			($	152	)
% of Total Com./Ag. loans			0.02	%			0.08	%			0.08	%			0.08	%			0.13	%			(81.3	%)
Commercial RE			487				1,322				1,029				1,049				939				(452	)
% of Total CRE loans			0.14	%			0.40	%			0.32	%			0.35	%			0.33	%			(48.1	%)
Residential RE			1,714				1,123				1,074				1,115				1,126				588
% of Total Res. RE loans			1.13	%			0.74	%			0.76	%			0.81	%			0.82	%			52.2	%
Consumer & Other			85				138				153				154				130				(45	)
% of Total Con./Oth. loans			0.14	%			0.23	%			0.26	%			0.26	%			0.23	%			(34.6	%)
Total Nonaccruing Loans			2,321				2,704				2,381				2,450				2,382				(61	)
% of Total loans			0.33	%			0.39	%			0.35	%			0.38	%			0.38	%			(2.56	%)
Accruing Restructured Loans			1,115				1,129				1,258				1,366				1,383
Total Nonaccruing & Restructured Loans		$	3,436			$	3,833			$	3,639			$	3,816			$	3,765			$	(329	)
% of Total loans			0.49	%			0.55	%			0.54	%			0.59	%			0.60	%			(8.7	%)
Foreclosed Assets			70				26				94				94				950
Total Nonperforming Assets		$	3,506			$	3,859			$	3,733			$	3,910			$	4,715			$	(1,209	)
% of Total assets			0.38	%			0.44	%			0.43	%			0.46	%			0.56	%			(25.6	%)

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on April 20, 2018, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.

 

 

About SB Financial Group

 

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 20 banking centers; 19 in nine Ohio counties and one center in Fort Wayne, Indiana, and 25 full-service ATMs. The Company has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.  SB Financial’s preferred stock is listed on the NASDAQ Capital Market under the symbol “SBFGP”.  

 

In May 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)

 

		March				December				September				June				March
($ in Thousands)		2018				2017				2017				2017				2017
ASSETS
Cash and due from banks		$	48,329				26,616				28,258				21,385				45,740
Securities available for sale, at fair value			91,987				82,790				85,304				103,347				107,937
Other securities - FRB and FHLB Stock			3,748				3,748				3,748				3,748				3,748
Total investment securities			95,735				86,538				89,052				107,095				111,685
Loans held for sale			8,893				3,940				7,663				9,437				5,104
Loans, net of unearned income			707,207				696,615				675,075				651,589				626,722
Allowance for loan losses			(8,219	)			(7,930	)			(7,760	)			(7,825	)			(7,679	)
Net loans			698,988				688,685				667,315				643,764				619,043
Premises, equipment and software, net			21,776				21,277				21,271				20,740				19,909
Cash surrender value of life insurance			16,567				16,479				13,692				13,859				13,791
Goodwill & other intangibles			16,409				16,411				16,414				16,417				16,419
Foreclosed assets held for sale, net			70				26				94				94				950
Mortgage servicing rights			10,196				9,907				9,560				9,217				8,727
Accrued interest receivable			1,925				1,825				1,880				1,411				1,462
Other assets			6,753				4,923				5,263				4,249				4,018
Total assets		$	925,641				876,627				860,462				847,668				846,848
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	132,919				135,592				124,840				124,213				124,664
Interest bearing demand			137,893				131,079				130,513				127,409				133,388
Savings deposits			116,820				103,267				103,530				104,720				103,901
Money market deposits			143,679				141,844				140,647				130,987				138,915
Time deposits			217,484				217,818				217,277				220,004				212,047
Total deposits			748,795				729,600				716,807				707,333				712,915
Advances from Federal Home Loan Bank			18,500				18,500				20,500				20,500				15,500
Repurchase agreements			14,505				15,082				11,343				11,175				11,796
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Accrued interest payable			633				592				611				563				450
Other liabilities			9,999				8,543				9,982				8,756				7,849
Total liabilities			802,742				782,627				769,553				758,637				758,820
Equity
Preferred shares			13,983				13,983				13,983				13,983				13,983
Common shares			40,481				12,569				12,569				12,569				12,569
Additional paid-in capital			15,189				15,405				15,335				15,260				15,224
Retained earnings			57,162				55,439				51,991				49,851				48,118
Accumulated other comprehensive income (loss)			(941	)			(141	)			335				340				136
Treasury shares			(2,975	)			(3,255	)			(3,304	)			(2,972	)			(2,002	)
Total equity			122,899				94,000				90,909				89,031				88,028
Total liabilities and equity		$	925,641				876,627				860,462				847,668				846,848

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands - except share data)		At and for the Three Months Ended																				Six Months Ended
		March				December				September				June				March				June				June
		2018				2017				2017				2017				2017				2018				2017
Interest income
Loans
Taxable		$	8,140				8,096				7,653				7,243				6,800				29,792				14,043
Nontaxable			21				23				21				21				20				85				41
Securities
Taxable			573				514				532				569				461				2,076				1,030
Nontaxable			117				129				132				133				133				527				266
Total interest income			8,851				8,762				8,338				7,966				7,414				32,480				15,380
Interest expense
Deposits			975				938				907				863				748				3,456				1,611
Repurchase Agreements & Other			10				2				4				6				4				16				10
Federal Home Loan Bank advances			79				85				86				63				86				320				149
Trust preferred securities			87				83				78				71				70				302				141
Total interest expense			1,151				1,108				1,075				1,003				908				4,094				1,911
Net interest income			7,700				7,654				7,263				6,963				6,506				28,386				13,469
Provision for loan losses			300				200				-				200				-				400				200
Net interest income after provision for loan losses			7,400				7,454				7,263				6,763				6,506				27,986				13,269
Noninterest income
Wealth Management Fees			739				718				688				704				667				2,777				1,371
Customer service fees			644				690				674				667				640				2,671				1,307
Gain on sale of mtg. loans & OMSR's			1,100				1,608				2,211				2,063				1,250				7,132				3,313
Mortgage loan servicing fees, net			471				465				227				241				383				1,316				624
Gain on sale of non-mortgage loans			660				179				294				369				430				1,272				799
Data service fees			-				179				182				184				193				738				377
Net gain on sales of securities			-				-				119				-				-				119				-
Gain/(loss) on sale/disposal of assets			(39	)			(4	)			8				-				2				6				10
Other income			668				257				458				234				237				1,186				463
Total non-interest income			4,243				4,092				4,861				4,462				3,802				17,217				8,264
Noninterest expense
Salaries and employee benefits			4,939				4,749				4,844				4,667				4,386				18,646				9,053
Net occupancy expense			649				582				566				552				560				2,260				1,112
Equipment expense			829				748				688				683				641				2,760				1,324
Data processing fees			438				363				429				396				370				1,558				766
Professional fees			419				492				502				417				363				1,774				780
Marketing expense			221				153				180				206				195				734				401
Telephone and communication			122				113				120				113				116				462				229
Postage and delivery expense			74				118				103				59				174				454				233
State, local and other taxes			186				164				198				170				167				699				337
Employee expense			166				227				242				183				145				797				328
Other expenses			584				397				412				360				265				1,434				625
Total non-interest expense			8,627				8,106				8,284				7,806				7,382				31,578				15,188
Income before income tax expense			3,016				3,440				3,840				3,419				2,926				13,625				6,345
Income tax expense (benefit)			563				(592	)			1,117				1,102				933				2,560				2,035
Net income		$	2,453				4,032				2,723				2,317				1,993				11,065				4,310
Preferred Share Dividends			244				244				244				244				244				975				488
Net income available to common shares			2,209				3,788				2,479				2,073				1,749				10,090				3,822
Common share data:
Basic earnings per common share		$	0.40				0.79				0.52				0.43				0.36				1.71				0.79
Diluted earnings per common share		$	0.35				0.64				0.43				0.37				0.31				1.48				0.68
Average shares outstanding ($ in thousands):
Basic:			5,519				4,790				4,797				4,827				4,855				5,924				4,839
Diluted:			7,055				6,329				6,326				6,351				6,387				7,474				6,366

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share data)		At and for the Three Months Ended
		March				December				September				June				March
SUMMARY OF OPERATIONS		2018				2017				2017				2017				2017
Net interest income		$	7,700				7,654				7,263				6,963				6,506
Tax-equivalent adjustment		$	37				78				79				79				79
Tax-equivalent net interest income		$	7,737				7,732				7,342				7,042				6,585
Provision for loan loss		$	300				200				-				200				-
Noninterest income		$	4,243				4,092				4,861				4,462				3,802
Total operating revenue		$	11,943				11,746				12,124				11,425				10,308
Noninterest expense		$	8,627				8,106				8,284				7,806				7,382
Pre-tax pre-provision income		$	3,316				3,640				3,840				3,619				2,926
Pretax income		$	3,016				3,440				3,840				3,419				2,926
Net income		$	2,453				4,032				2,723				2,317				1,993
Income available to common shareholders		$	2,209				3,788				2,479				2,073				1,749
PER SHARE INFORMATION:
Basic earnings per share		$	0.40				0.79				0.52				0.43				0.36
Diluted earnings per share		$	0.35				0.64				0.43				0.37				0.31
Common dividends		$	0.075				0.075				0.070				0.070				0.065
Book value per common share		$	15.46				15.03				14.55				14.21				13.92
Tangible book value per common share		$	14.27				13.27				12.64				12.20				11.83
Market price per common share		$	18.51				18.49				17.16				16.88				16.72
Market price per preferred share		$	18.20				17.90				16.45				16.89				16.85
Market price to tangible book value			129.7	%			139.3	%			135.8	%			138.4	%			141.4	%
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.08	%			1.83	%			1.27	%			1.09	%			0.96	%
Pre-tax pre-provision ROAA			1.46	%			1.65	%			1.79	%			1.70	%			1.41	%
Return on average equity			9.03	%			17.52	%			12.11	%			10.45	%			9.13	%
Return on average tangible equity			12.54	%			26.16	%			18.28	%			15.91	%			14.00	%
Efficiency ratio			72.22	%			68.99	%			68.30	%			68.30	%			71.59	%
Earning asset yield			4.41	%			4.52	%			4.36	%			4.26	%			4.08	%
Cost of interest bearing liabilities			0.71	%			0.69	%			0.68	%			0.64	%			0.60	%
Net interest margin			3.84	%			3.92	%			3.77	%			3.69	%			3.55	%
Tax equivalent effect			0.02	%			0.04	%			0.04	%			0.04	%			0.04	%
Net interest margin, tax equivalent			3.86	%			3.96	%			3.81	%			3.73	%			3.59	%
Non interest income/Average assets			1.87	%			1.86	%			2.27	%			2.09	%			1.84	%
Non interest expense/Average assets			3.81	%			3.68	%			3.87	%			3.66	%			3.57	%
Net noninterest expense/Average assets			1.93	%			1.82	%			1.60	%			1.57	%			1.73	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	19				36				75				69				51
Recoveries		$	9				5				10				15				5
Net charge-offs		$	10				31				65				54				46
Nonaccruing loans/ Total loans			0.33	%			0.39	%			0.35	%			0.38	%			0.38	%
Nonperforming loans/ Total loans			0.49	%			0.55	%			0.54	%			0.59	%			0.60	%
Nonperforming assets/ Loans & OREO			0.50	%			0.55	%			0.55	%			0.60	%			0.75	%
Nonperforming assets/ Total assets			0.38	%			0.44	%			0.43	%			0.46	%			0.56	%
Allowance for loan loss/ Nonperforming loans			239.20	%			206.89	%			213.25	%			205.06	%			203.96	%
Allowance for loan loss/ Total loans			1.16	%			1.14	%			1.15	%			1.20	%			1.23	%
Net loan charge-offs/ Average loans (ann.)			0.01	%			0.02	%			0.04	%			0.03	%			0.03	%
Loan loss provision/ Net charge-offs			3000.00	%			645.16	%			0.00	%			370.37	%			0.00	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			94.45	%			95.48	%			94.18	%			92.12	%			87.91	%
Equity/ Assets			13.28	%			10.72	%			10.57	%			10.50	%			10.39	%
Tangible equity/ Tangible assets			10.17	%			7.39	%			7.17	%			7.05	%			6.94	%
Tangible equity adjusted for conversion			11.71	%			9.02	%			8.83	%			8.74	%			8.62	%
END OF PERIOD BALANCES
Total assets		$	925,641				876,627				860,462				847,668				846,848
Total loans		$	707,207				696,615				675,075				651,589				626,722
Deposits		$	748,795				729,600				716,807				707,333				712,915
Stockholders equity		$	122,899				94,000				90,909				89,031				88,028
Goodwill & intangibles		$	16,409				16,411				16,414				16,417				16,419
Preferred equity		$	13,983				13,983				13,983				13,983				13,983
Tangible equity		$	92,507				63,606				60,512				58,631				57,626
Mortgage servicing portfolio		$	1,004,728				994,915				979,251				952,364				917,435
Wealth/Brokerage assets under care		$	411,654				437,034				429,777				407,268				404,290
Total assets under care		$	2,342,023				2,308,576				2,269,490				2,207,300				2,168,573
Full-time equivalent employees			240				240				237				237				231
Period end basic shares outstanding			6,483				4,793				4,788				4,807				4,873
Period end outstanding (Series A Converted)			1,465				1,463				1,461				1,459				1,452
AVERAGE BALANCES
Total assets		$	906,281				880,446				857,147				852,526				827,514
Total earning assets		$	802,358				781,795				771,722				754,736				734,378
Total loans		$	711,733				691,929				667,943				644,658				637,490
Deposits		$	738,867				731,992				712,614				717,472				683,639
Stockholders equity		$	108,662				92,036				89,974				88,637				87,344
Intangibles		$	16,410				16,412				16,415				16,418				16,421
Preferred equity		$	13,983				13,983				13,983				13,983				13,983
Tangible equity		$	78,269				61,641				59,576				58,236				56,940
Average basic shares outstanding			5,519				4,790				4,797				4,827				4,855
Average diluted shares outstanding			7,055				6,329				6,326				6,351				6,387

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended March 31, 2018 and 2017

 

($ in Thousands)		Three Months Ended Mar. 31, 2018												Three Months Ended Mar. 31, 2017
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities		$	77,802				573				2.95	%		$	82,727				461				2.23	%
Nontaxable securities			12,823				117				3.65	%			14,161				133				3.76	%
Loans, net			711,733				8,161				4.59	%			637,490				6,820				4.28	%
Total earning assets			802,358				8,851				4.41	%			734,378				7,414				4.04	%
Cash and due from banks			38,145												35,827
Allowance for loan losses			(8,043	)											(7,800	)
Premises and equipment			21,307												20,594
Other assets			52,514												44,515
Total assets		$	906,281											$	827,514
Liabilities
Savings and interest bearing demand		$	389,809				256				0.26	%		$	358,542				172				0.19	%
Time deposits			214,645				719				1.34	%			203,113				576				1.13	%
Repurchase agreements & Other			18,124				10				0.22	%			13,801				4				0.12	%
Advances from Federal Home Loan Bank			18,500				79				1.71	%			22,972				86				1.50	%
Trust preferred securities			10,310				87				3.38	%			10,310				70				2.72	%
Total interest bearing liabilities			651,388				1,151				0.71	%			608,738				908				0.60	%
Non interest bearing demand			134,413				-								121,984				-
Total funding			785,801								0.59	%			730,722								0.50	%
Other liabilities			11,818												9,448
Total liabilities			797,619												740,170
Equity			108,662												87,344
Total liabilities and equity		$	906,281											$	827,514
Net interest income						$	7,700											$	6,506
Net interest income as a percent of average interest-earning assets - GAAP measure											3.84	%											3.54	%
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis											3.86	%											3.59	%