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 2018 Results

 

Full year adjusted net income growth of 24% and loan growth of 11%

 

DEFIANCE, Ohio, January 24, 2019 -- 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 fourth quarter and twelve months ended December 31, 2018.

 

Fourth quarter 2018 highlights over prior year fourth quarter, excluding the positive impact to our 2017 fourth quarter net income of the one-time $1.7 million deferred tax liability include:

 

●

Net income of $3.0 million, up $0.6 million or 27.2 percent

 

●

Diluted EPS of $0.37, flat to the prior year

 

●

Return on average assets of 1.19 percent, up 13 basis points, or 12.6 percent

 

●

Operating revenue of $12.5 million, up $0.8 million, or 6.8 percent

 

●

Mortgage origination volume of $78.8 million, an increase of $6.7 million, or 9.3 percent

 

Twelve month 2018 highlights over prior year twelve months, excluding the positive impact to our 2017 net income of the one-time $1.7 million deferred tax liability include:

 

●

Net income of $11.6 million, an increase of $2.3 million, or 24.3 percent

 

●

Diluted EPS of $1.51, an increase of $0.04 per share, or 2.5 percent, as a result of the higher share count associated with the $30 million common capital raise completed in the first quarter of 2018

 

●

Return on average assets of 1.23 percent, up 13 basis points, or 12.3 percent

 

●

Operating revenue of $49.9 million, up $4.3 million, or 9.4 percent

 

●

Loan growth of $75.3 million, or 10.8 percent

 

●

Deposit growth of $73.0 million, or 10.0 percent

 

●

Mortgage origination volume of $342.1 million, an increase of $26.3 million, or 8.3 percent

 

 

Highlights

 

		Three Months Ended												Twelve Months Ended
($ in thousands, except per share & ratios)		Dec. 2018				Dec. 2017				% Change				Dec. 2018				Dec. 2017				% Change
Operating revenue		$	12,544			$	11,746				6.8	%		$	49,891			$	45,603				9.4	%
Interest income			10,638				8,762				21.4				39,479				32,480				21.5
Interest expense			2,024				1,108				82.7				6,212				4,094				51.7
Net interest income			8,614				7,654				12.5				33,267				28,386				17.2
Noninterest income			3,930				4,092				(4.0	)			16,624				17,217				(3.4	)
Noninterest expense			8,852				8,106				9.2				34,847				31,578				10.4
Net income			2,960				4,032				(26.6	)			11,638				11,065				5.2
Earnings per diluted share			0.37				0.64				(42.2	)			1.51				1.74				(13.2	)
Net interest margin (FTE)			3.95	%			3.96	%			(0.3	)			3.95	%			3.78	%			4.5
Return on average assets			1.19	%			1.83	%			(35.0	)			1.23	%			1.29	%			(4.7	)
Return on average equity			9.21	%			17.52	%			(47.4	)			9.61	%			12.36	%			(22.2	)
Net income - adjusted for 2017 DTL			2,960				2,327				27.2				11,638				9,360				24.3
Earnings per diluted share - adj. for DTL			0.37				0.37				0.6				1.51				1.47				2.5
Return on average assets - adj. for DTL			1.19	%			1.06	%			12.6				1.23	%			1.10	%			12.3

 

“SB Financial’s fourth quarter and full year net income was an improvement over the prior year of 27 and 24 percent respectively excluding the 2017 deferred tax benefit,” said Mark A. Klein, Chairman, President and CEO of SB Financial. “Organic balance sheet loan growth of $75 million for the year was our strong suit in 2018, despite some late pay downs at year end.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 6.8 percent from the fourth quarter of 2017, but down 1.5 percent to the linked quarter.

 

●

Net interest income was up 12.5 percent from the year-ago quarter, and up 1.0 percent from the linked quarter.

 

●

Net interest margin (FTE) was down 1 basis point from both the year-ago and linked quarter.

 

●

Noninterest income for the quarter and the year were down slightly at 4.0 and 3.4 percent respectively.

 

●

Total revenue for the full year of 2018 was $49.9 million, compared to $45.6 million for the full year fo 2017, which is a 9.4 percent increase.

 

Mortgage Loan Business

 

Mortgage loan originations for the fourth quarter of 2018 were $78.8 million, up $6.7 million, or 9.3 percent, from the year-ago quarter. Total sales of originated loans were $60.3 million, up $6.5 million, or 12.1 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 $2.0 million for the fourth quarter of 2018, compared to $2.1 million for the year-ago quarter. The mortgage servicing valuation adjustment for the fourth quarter of 2018 was a negative $0.07 million, compared to a positive adjustment of $0.12 million for the fourth quarter of 2017. The aggregate servicing valuation impairment ended the quarter at $0.21 million. The mortgage servicing portfolio at December 31, 2018, was $1.08 billion, up $0.09 billion, or 9.0 percent, from $0.99 billion at December 31, 2017.

 

 

Mr. Klein noted, “Despite rising rates and inventory pressure, we increased our mortgage production this quarter compared to the prior year. Our full year production level of $342 million is the second highest in our history and included our first loan closing from our new Indianapolis office.”

 

Mortgage Banking
($ in thousands)		Dec. 2018				Sep. 2018				Jun. 2018				Mar. 2018				Dec. 2017
Mortgage originations		$	78,829			$	95,289			$	109,466			$	58,485			$	72,102
Mortgage sales			60,345				80,555				79,162				40,589				53,825
Mortgage servicing portfolio			1,084,678				1,066,402				1,030,780				1,004,728				994,915
Mortgage servicing rights			11,347				11,129				10,634				10,195				9,907
Mortgage servicing revenue:
Loan servicing fees			673				653				636				625				617
OMSR amortization			(301	)			(318	)			(367	)			(246	)			(269	)
Net administrative fees			372				335				269				379				348
OMSR valuation adjustment			(68	)			(62	)			(22	)			92				118
Net loan servicing fees			304				273				247				471				466
Gain on sale of mortgages			1,646				2,066				2,058				1,100				1,608
Mortgage banking revenue, net		$	1,950			$	2,339			$	2,305			$	1,571			$	2,074

 

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 (SBA) loans. SBA activity for the quarter consisted of total origination volume of $1.7 million with higher sales volume resulting in gains of $0.3 million. Wealth management assets under the Company’s care stood at $423.3 million as of December 31, 2018, up $11 million from the linked quarter. For the fourth quarter of 2018, noninterest income as a percentage of total revenue was 31.3 percent. For the fourth quarter of 2018, noninterest expense (NIE) of $8.9 million was up $0.8 million, or 9.2 percent, compared to the same quarter last year. Compared to the linked quarter, NIE was up $0.1 million.

 

Mr. Klein stated, “Fee income levels from mortgage and SBA loan sale gains have tempered a bit this year with slightly higher rates. Likewise, our larger balance sheet and resulting higher net interest margin, has constrained our percentage of non-interest income as a percentage of total revenue.”

 

Noninterest Income / Noninterest Expense
($ in thousands, except ratios)		Dec. 2018				Sep. 2018				Jun. 2018				Mar. 2018				Dec. 2017
Noninterest Income (NII)		$	3,930			$	4,202			$	4,249			$	4,243			$	4,092
NII / Total Revenue			31.3	%			33.0	%			33.5	%			35.5	%			34.8	%
NII / Average Assets			1.6	%			1.8	%			1.8	%			1.9	%			1.9	%
Noninterest Expense (NIE)		$	8,852			$	8,789			$	8,579			$	8,627			$	8,106
Efficiency Ratio			70.6	%			69.0	%			67.7	%			72.2	%			69.0	%
NIE / Average Assets			3.6	%			3.7	%			3.7	%			3.8	%			3.7	%
Net Noninterest Expense			-2.0	%			-1.9	%			-1.9	%			-1.9	%			-1.8	%

 

 

Balance Sheet

 

Total assets as of December 31, 2018, were $985.9 million, up $109.3 million, or 12.5 percent, from a year ago. Total equity as of December 31, 2018, was $130.4 million, up 38.7 percent from a year ago, and comprised 13.2 percent of total assets. Both the equity and total assets reflect the $30 million common capital raise completed in the first quarter of 2018.

 

Total loans held for investment were $771.9 million at December 31, 2018, up $75.3 million, or 10.8 percent, from December 31, 2017. Residential real estate loans were up $36.3 million, or 24.0 percent, with commercial loans rising $25.6 million, or 25.1 percent.

 

The investment portfolio of $95.2 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 9.7 percent of assets at December 31, 2018, and was up 10.1 percent from the year-ago period. Deposit balances of $802.6 million at December 31, 2018, increased by $73.0 million, or 10.0 percent, since December 31, 2017. Growth from the prior year included $8.5 million in checking and $64.5 million in savings and time deposit balances.

 

Mr. Klein continued, “Loan volumes have been strong for us all year, with consistent growth across all quarters until the pay downs this quarter. We also had a robust deposit growth performance in the quarter and for the full year, with a double-digit growth in deposits from December of 2017. Nonperforming assets ended the year at 40 basis points, down 4 basis points from the prior year.”

 

Loan Balance
($ in thousands, except ratios)		Dec. 2018				Sep. 2018				Jun. 2018				Mar. 2018				Dec. 2017				Annual Growth
Commercial		$	127,640			$	119,810			$	115,140			$	107,579			$	102,041			$	25,599
% of Total			16.5	%			15.5	%			15.3	%			15.2	%			14.6	%			25.1	%
Commercial RE			340,791				356,563				350,266				338,586				332,154				8,637
% of Total			44.2	%			46.2	%			46.5	%			47.9	%			47.7	%			2.6	%
Agriculture			52,012				52,814				52,466				50,266				51,947				65
% of Total			6.7	%			6.8	%			7.0	%			7.1	%			7.5	%			0.1	%
Residential RE			187,104				178,033				172,773				151,820				150,854				36,250
% of Total			24.2	%			23.1	%			22.9	%			21.5	%			21.6	%			24.0	%
Consumer & Other			64,336				64,478				62,640				58,956				59,619				4,717
% of Total			8.3	%			8.4	%			8.3	%			8.3	%			8.6	%			7.9	%
Total Loans		$	771,883			$	771,698			$	753,285			$	707,207			$	696,615			$	75,268
Total Growth Percentage																							10.8	%
Deposit Balance
($ in thousands, except ratios)		Dec. 2018				Sep. 2018				Jun. 2018				Mar. 2018				Dec. 2017				Annual Growth
Non-Int DDA		$	144,592			$	134,747			$	131,125			$	132,919			$	135,592			$	9,000
% of Total			18.0	%			17.1	%			17.4	%			17.8	%			18.6	%			6.6	%
Interest DDA			130,628				130,897				129,486				137,893				131,079				-451
% of Total			16.3	%			16.6	%			17.2	%			18.4	%			18.0	%			-0.3	%
Savings			104,444				114,213				118,108				116,820				103,267				1,177
% of Total			12.9	%			14.4	%			15.7	%			15.6	%			14.1	%			1.1	%
Money Market			181,426				170,190				151,228				143,679				141,844				39,582
% of Total			22.6	%			21.6	%			20.1	%			19.2	%			19.4	%			27.9	%
Certificates			241,462				239,379				222,932				217,484				217,818				23,644
% of Total			30.1	%			30.3	%			29.6	%			29.0	%			29.9	%			10.9	%
Total Deposits		$	802,552			$	789,426			$	752,879			$	748,795			$	729,600			$	72,952
Total Growth Percentage																							10.0	%

 

 

Asset Quality

 

SB Financial maintained its high-performance among its peers in asset quality levels for the quarter, reporting nonperforming assets of $4.0 million as of December 31, 2018, up $0.1 million, or 2.7 percent, from the year-ago quarter. SB Financial’s nonperforming assets to total assets ratio of 0.40 percent is in the top quartile of its 65-bank peer group. The coverage of problem loans by the loan loss allowance was at 213 percent at December 31, 2018, up from 207 percent at December 31, 2017.

 

Summary of Nonperforming Assets
($ in thousands, except ratios)		Dec. 2018				Sep. 2018				Jun. 2018				Mar. 2018				Dec. 2017				Annual Growth
Commercial & Agriculture		$	731			$	360			$	33			$	35			$	121			$	610
% of Total Com./Ag. loans			0.41	%			0.21	%			0.02	%			0.02	%			0.08	%			504.1	%
Commercial RE			218				228				234				487				1,322				(1,104	)
% of Total CRE loans			0.06	%			0.06	%			0.07	%			0.14	%			0.40	%			-83.5	%
Residential RE			1,738				1,541				1,634				1,714				1,123				615
% of Total Res. RE loans			0.93	%			0.87	%			0.95	%			1.13	%			0.74	%			54.8	%
Consumer & Other			219				252				221				85				138				81
% of Total Con./Oth. loans			0.34	%			0.39	%			0.35	%			0.14	%			0.23	%			58.7	%
Total Nonaccruing Loans			2,906				2,381				2,122				2,321				2,704				202
% of Total loans			0.38	%			0.31	%			0.28	%			0.33	%			0.39	%			7.5	%
Accruing Restructured Loans			928				940				1,101				1,115				1,129				(201	)
Total Growth (%)																							-17.8	%
Total Nonaccruing & Restructured Loans		$	3,834			$	3,321			$	3,223			$	3,436			$	3,833			$	1
% of Total loans			0.50	%			0.43	%			0.43	%			0.49	%			0.55	%			0.0	%
Foreclosed Assets			131				105				16				70				26				105
Total Growth (%)																							403.8	%
Total Nonperforming Assets		$	3,965			$	3,426			$	3,239			$	3,506			$	3,859			$	106
% of Total assets			0.40	%			0.35	%			0.34	%			0.38	%			0.44	%			2.7	%

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on January 25, 2019, at 10:00 a.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at 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 offices; 19 in nine Ohio counties and one in Fort Wayne, Indiana, and 26 full-service ATMs. The Company has seven 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 2018, SB Financial was ranked #72 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

 

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

 

###

 

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		December				September				June				March				December
($ in thousands)		2018				2018				2018				2018				2017
ASSETS
Cash and due from banks		$	48,363			$	45,515			$	24,413				48,329				26,616
Available-for-sale securities			91,039				84,114				89,911				91,987				82,790
Loans held for sale			4,445				6,888				7,551				8,893				3,940
Loans, net of unearned income			771,883				771,698				753,285				707,207				696,615
Allowance for loan losses			(8,167	)			(8,489	)			(8,494	)			(8,219	)			(7,930	)
Premises and equipment, net			22,084				21,900				21,683				21,776				21,277
Federal Reserve and FHLB Stock, at cost			4,123				4,123				3,748				3,748				3,748
Foreclosed assets held for sale, net			131				105				16				70				26
Interest receivable			1,892				2,433				2,000				1,925				1,825
Goodwill and other intangibles			16,401				16,404				16,406				16,409				16,411
Cash value of life insurance			16,834				16,745				16,656				16,567				16,479
Mortgage servicing rights			11,365				11,129				10,633				10,196				9,907
Other assets			5,505				6,615				6,977				6,753				4,923
Total assets		$	985,898			$	979,180			$	944,785			$	925,641			$	876,627
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	144,592			$	134,747			$	131,125				132,919				135,592
Interest bearing demand			130,628				130,897				129,486				137,893				131,079
Savings			104,444				114,213				118,108				116,820				103,267
Money market			181,426				170,190				151,228				143,679				141,844
Time deposits			241,462				239,379				222,932				217,484				217,818
Total deposits			802,552				789,426				752,879				748,795				729,600
Repurchase agreements			15,184				15,539				18,191				14,505				15,082
Federal Home Loan Bank advances			16,000				24,500				26,500				18,500				18,500
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Interest payable			909				891				685				633				592
Other liabilities			10,508				11,405				11,116				9,999				8,543
Total liabilities			855,463				852,071				819,681				802,742				782,627
Stockholders’ Equity
Preferred stock			13,979				13,979				13,983				13,983				13,983
Common stock			40,485				40,485				40,481				40,481				12,569
Additional paid-in capital			15,226				15,160				15,098				15,189				15,405
Retained earnings			64,012				61,854				59,503				57,162				55,439
Accumulated other comprehensive loss			(552	)			(1,654	)			(1,240	)			(941	)			(141	)
Treasury stock			(2,715	)			(2,715	)			(2,721	)			(2,975	)			(3,255	)
Total equity			130,435				127,109				125,104				122,899				94,000
Total liabilities and stockholders’ equity		$	985,898			$	979,180			$	944,785				925,641				876,627

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

		At and for the Three Months Ended																				Twelve Months Ended
($ in thousands, except per share &		December				September				June				March				December				December				December
ratios)		2018				2018				2018				2018				2017				2018				2017
Interest income
Loans
Taxable		$	9,661				9,499				8,968				8,140				8,096				36,268				29,792
Tax exempt			55				42				36				21				23				154				85
Securities
Taxable			822				610				613				573				514				2,618				2,076
Tax exempt			100				107				115				117				129				439				527
Total interest income			10,638				10,258				9,732				8,851				8,762				39,479				32,480
Interest expense
Deposits			1,776				1,472				1,091				975				938				5,314				3,456
Repurchase agreements & other			10				11				6				10				2				37				16
Federal Home Loan Bank advances			131				140				110				79				85				460				320
Trust preferred securities			107				106				101				87				83				401				302
Total interest expense			2,024				1,729				1,308				1,151				1,108				6,212				4,094
Net interest income			8,614				8,529				8,424				7,700				7,654				33,267				28,386
Provision for loan losses			-				-				300				300				200				600				400
Net interest income after provision for loan losses			8,614				8,529				8,124				7,400				7,454				32,667				27,986
Noninterest income
Wealth Management Fees			717				705				710				739				718				2,871				2,777
Customer service fees			679				672				675				644				690				2,670				2,671
Gain on sale of mtg. loans & OMSR’s			1,646				2,066				2,058				1,100				1,608				6,870				7,132
Mortgage loan servicing fees, net			304				273				247				471				465				1,295				1,316
Gain on sale of non-mortgage loans			295				125				150				660				179				1,230				1,272
Data service fees			-				-				-				-				179				-				738
Net gain on sales of securities			-				70				-				-				-				70				119
Gain/(loss) on sale of assets			14				-				60				(39	)			(4	)			35				6
Other			275				291				349				668				257				1,583				1,186
Total noninterest income			3,930				4,202				4,249				4,243				4,092				16,624				17,217
Noninterest expense
Salaries and employee benefits			5,108				5,372				5,201				4,939				4,749				20,620				18,646
Net occupancy expense			600				588				560				649				582				2,397				2,260
Equipment expense			756				667				637				829				748				2,889				2,760
Data processing fees			466				489				418				438				363				1,811				1,558
Professional fees			532				393				504				419				492				1,848				1,774
Marketing expense			262				197				204				221				153				884				734
Telephone and communication			121				124				128				122				113				495				462
Postage and delivery expense			66				83				63				74				118				286				454
State, local and other taxes			180				177				176				186				164				719				699
Employee expense			283				243				220				166				227				912				797
Other expenses			478				456				468				584				397				1,986				1,434
Total noninterest expense			8,852				8,789				8,579				8,627				8,106				34,847				31,578
Income before income tax expense			3,692				3,942				3,794				3,016				3,440				14,444				13,625
Income tax expense (benefit)			732				824				687				563				(592	)			2,806				2,560
Net income		$	2,960				3,118				3,107				2,453				4,032				11,638				11,065
Preferred Share Dividends			243				244				244				244				244				974				975
Net income available to common shares			2,717				2,874				2,863				2,209				3,788				10,663				10,090
Common share data:
Basic earnings per common share		$	0.42				0.45				0.45				0.40				0.79				1.72				2.10
Diluted earnings per common share		$	0.37				0.39				0.40				0.35				0.64				1.51				1.74
Average shares outstanding ($ in thousands):
Basic:			6,503				6,503				6,489				5,519				4,790				6,198				4,817
Diluted:			8,030				8,022				8,003				7,055				6,329				7,719				6,351

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share & ratios)		At and for the Three Months Ended																					Twelve Months Ended
SUMMARY OF OPERATIONS		December 2018				September 2018				June 2018				March 2018				December 2017					December 2018				December 2017
Net interest income		$	8,614				8,529				8,424				7,700				7,654					33,267				28,386
Tax-equivalent adjustment			41				40				40				37				78					158				315
Tax-equivalent net interest income			8,655				8,569				8,464				7,737				7,732					33,425				28,701
Provision for loan loss			-				-				300				300				200					600				400
Noninterest income			3,930				4,202				4,249				4,243				4,092					16,624				17,217
Total operating revenue			12,544				12,731				12,673				11,943				11,746					49,891				45,603
Noninterest expense			8,852				8,789				8,579				8,627				8,106					34,847				31,578
Pre-tax pre-provision income			3,692				3,942				4,094				3,316				3,640					15,044				14,025
Pretax income			3,692				3,942				3,794				3,016				3,440					14,444				13,625
Net income			2,960				3,118				3,107				2,453				4,032					11,638				11,065
Income available to common shareholders			2,717				2,874				2,863				2,209				3,788					10,663				10,090
PER SHARE INFORMATION:
Basic earnings per share		$	0.42				0.45				0.45				0.40				0.79					1.72				2.10
Diluted earnings per share			0.37				0.39				0.40				0.35				0.64					1.51				1.74
Common dividends			0.085				0.080				0.080				0.075				0.075					0.320				0.280
Book value per common share			16.36				15.94				15.73				15.49				15.05					16.36				15.05
Tangible book value per common share			15.39				14.87				14.57				14.27				13.27					15.39				13.27
Fully converted TBV per common share			14.30				13.88				13.66				13.42				12.42					14.30				12.42
Market price per common share			16.45				20.35				20.32				18.51				18.49					16.45				18.49
Market price per preferred share			17.90				20.25				19.82				18.20				17.90					17.90				17.90
Market price to tangible book value			106.9	%			136.8	%			139.5	%			129.7	%			139.3	%				106.9	%			139.3	%
Market price to trailing 12 month EPS			11.0				11.5				11.2				10.3				10.6					11.0				10.6
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.19	%			1.30	%			1.35	%			1.08	%			1.83	%				1.23	%			1.29	%
Pre-tax pre-provision ROAA			1.48	%			1.64	%			1.78	%			1.46	%			1.65	%				1.59	%			1.64	%
Return on average equity			9.21	%			9.89	%			10.02	%			9.03	%			17.52	%				9.61	%			12.36	%
Return on average tangible equity			12.06	%			13.02	%			13.28	%			12.54	%			26.16	%				12.83	%			18.71	%
Efficiency ratio			70.55	%			69.01	%			67.67	%			72.22	%			68.99	%				69.83	%			69.22	%
Earning asset yield			4.86	%			4.75	%			4.76	%			4.41	%			4.52	%				4.67	%			4.28	%
Cost of interest bearing liabilities			1.15	%			1.00	%			0.80	%			0.71	%			0.69	%				0.92	%			0.65	%
Net interest margin			3.93	%			3.95	%			4.12	%			3.84	%			3.92	%				3.93	%			3.74	%
Tax equivalent effect			0.02	%			0.01	%			0.02	%			0.02	%			0.04	%				0.02	%			0.04	%
Net interest margin, tax equivalent			3.95	%			3.96	%			4.14	%			3.86	%			3.96	%				3.95	%			3.78	%
Non interest income/Average assets			1.58	%			1.75	%			1.84	%			1.87	%			1.86	%				1.75	%			2.01	%
Non interest expense/Average assets			3.56	%			3.65	%			3.72	%			3.81	%			3.68	%				3.68	%			3.70	%
Net noninterest expense/Average assets			1.98	%			1.91	%			1.88	%			1.93	%			1.82	%				1.92	%			1.68	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	322				12				54				19				36					407				231
Recoveries			1				6				29				9				5					45				35
Net charge-offs			321				6				25				10				31					362				196
Nonaccruing loans/ Total loans			0.38	%			0.31	%			0.28	%			0.33	%			0.39	%				0.38	%			0.39	%
Nonperforming loans/ Total loans			0.50	%			0.43	%			0.43	%			0.49	%			0.55	%				0.50	%			0.55	%
Nonperforming assets/ Loans & OREO			0.51	%			0.44	%			0.43	%			0.50	%			0.55	%				0.51	%			0.55	%
Nonperforming assets/ Total assets			0.40	%			0.35	%			0.34	%			0.38	%			0.44	%				0.40	%			0.44	%
Allowance for loan loss/ Nonperforming loans			213.02	%			255.62	%			263.54	%			239.20	%			206.89	%				213.02	%			206.89	%
Allowance for loan loss/ Total loans			1.06	%			1.10	%			1.13	%			1.16	%			1.14	%				1.06	%			1.14	%
Net loan charge-offs/ Average loans (ann.)			0.17	%			0.00	%			0.01	%			0.01	%			0.02	%				0.05	%			0.03	%
Loan loss provision/ Net charge-offs			0.00	%			0.00	%			1200.00	%			3000.00	%			645.16	%				165.75	%			204.08	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			96.18	%			97.75	%			100.05	%			94.45	%			95.48	%				96.18	%			95.48	%
Equity/ Assets			13.23	%			12.98	%			13.24	%			13.28	%			10.72	%				13.23	%			10.72	%
Tangible equity/ Tangible assets			10.32	%			10.05	%			10.20	%			10.17	%			7.39	%				10.32	%			7.39	%
Tangible equity adjusted for conversion			11.76	%			11.50	%			11.71	%			11.71	%			9.02	%				11.76	%			9.02	%
Common equity tier 1 ratio (Bank) - 12/18 est.			12.22	%			12.16	%			11.91	%			12.23	%			10.53	%				12.22	%			10.53	%
END OF PERIOD BALANCES
Total assets		$	985,898				979,180				944,785				925,641				876,627					985,898				876,627
Total loans			771,883				771,698				753,285				707,207				696,615					771,883				696,615
Deposits			802,552				789,426				752,879				748,795				729,600					802,552				729,600
Stockholders equity			130,435				127,109				125,104				122,899				94,000					130,435				94,000
Goodwill & intangibles			16,401				16,404				16,406				16,409				16,411					16,401				16,411
Preferred equity			13,979				13,979				13,983				13,983				13,983					13,979				13,983
Tangible equity			100,055				96,726				94,715				92,507				63,606					100,055				63,606
Mortgage servicing portfolio			1,084,678				1,066,402				1,030,780				1,004,728				994,915					1,084,678				994,915
Wealth/Brokerage assets under care			423,289				412,218				407,592				411,654				437,034					423,289				437,034
Total assets under care			2,493,865				2,457,800				2,383,157				2,342,023				2,308,576					2,493,865				2,308,576
Full-time equivalent employees (actual)			250				250				241				240				240					250				240
Period end basic shares outstanding			6,503				6,503				6,502				6,483				4,793					6,503				4,793
Period end outstanding (Series A Converted)			1,472				1,470				1,453				1,453				1,453					1,472				1,453
AVERAGE BALANCES
Total assets		$	994,977				962,369				922,355				906,281				880,446					947,266				854,569
Total earning assets			875,747				864,490				817,270				802,358				781,795					845,672				759,681
Total loans			775,060				770,948				724,710				711,733				691,929					749,055				660,675
Deposits			803,928				769,266				739,877				738,867				731,992					764,297				711,500
Stockholders equity			128,539				126,144				123,990				108,662				92,036					121,094				89,538
Intangibles			16,403				16,405				16,407				16,410				16,412					16,406				16,417
Preferred equity			13,979				13,983				13,983				13,983				13,983					13,982				13,983
Tangible equity			98,157				95,756				93,600				78,269				61,641					90,706				59,138
Average basic shares outstanding			6,503				6,503				6,489				5,519				4,790					6,198				4,817
Average diluted shares outstanding			8,030				8,022				8,003				7,055				6,329					7,719				6,351

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

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

 

($ in thousands)		Three Months Ended Dec. 31, 2018												Three Months Ended Dec. 31, 2017
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	90,602				822				3.63	%		$	76,268				514				2.70	%
Nontaxable securities			10,085				100				3.97	%			13,598				129				3.80	%
Loans, net			775,060				9,716				5.01	%			691,929				8,119				4.69	%
Total earning assets			875,747				10,638				4.86	%			781,795				8,762				4.48	%
Cash and due from banks			56,358												37,141
Allowance for loan losses			(8,490	)											(7,842	)
Premises and equipment			22,200												21,424
Other assets			49,162												47,928
Total assets		$	994,977											$	880,446
Liabilities
Savings and interest bearing demand		$	418,284				691				0.66	%		$	378,278				219				0.23	%
Time deposits			239,787				1,085				1.81	%			216,969				719				1.33	%
Repurchase agreements & Other			15,222				10				0.26	%			13,220				2				0.06	%
Advances from Federal Home Loan Bank			22,467				131				2.33	%			20,283				85				1.68	%
Trust preferred securities			10,310				107				4.15	%			10,310				83				3.22	%
Total interest bearing liabilities			706,070				2,024				1.15	%			639,060				1,108				0.69	%
Non interest bearing demand			145,857				-								136,745				-
Total funding			851,927								0.95	%			775,805								0.57	%
Other liabilities			14,511												12,605
Total liabilities			866,438												788,410
Equity			128,539								559,131				92,036
Total liabilities and equity		$	994,977											$	880,446
Net interest income						$	8,614											$	7,654
Net interest income as a percent of average interest-earning assets - GAAP measure											3.93	%											3.92	%
Net interest income as a percent of average interest-earning assets - non GAAP											3.95	%											3.96	%
- Computed on a fully tax equivalent (FTE) basis
			Twelve Months Ended Dec. 31, 2018												Twelve Months Ended Dec. 31, 2017
			Average								Average				Average								Average
			Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities		$	85,238				2,618				3.07	%		$	84,918				2,076				2.44	%
Nontaxable securities			11,379				439				3.86	%			14,088				527				3.75	%
Loans, net			749,055				36,422				4.86	%			660,675				29,877				4.52	%
Total earning assets			845,672				39,479				4.67	%			759,681				32,480				4.28	%
Cash and due from banks			38,990												35,337
Allowance for loan losses			(8,361	)											(7,828	)
Premises and equipment			21,795												21,084
Other assets			49,170												46,295
Total assets		$	947,266											$	854,569
Liabilities
Savings and interest bearing demand		$	401,577				1,754				0.44	%		$	369,114				795				0.22	%
Time deposits			225,467				3,560				1.58	%			214,639				2,661				1.24	%
Repurchase agreements & Other			16,458				37				0.22	%			12,350				16				0.13	%
Advances from Federal Home Loan Bank			22,108				460				2.08	%			20,000				320				1.60	%
Trust preferred securities			10,310				401				3.89	%			10,310				302				2.93	%
Total interest bearing liabilities			675,920				6,212				0.92	%			626,413				4,094				0.65	%
Non interest bearing demand			137,253								0.76	%			127,747								0.54	%
Total funding			813,173												754,160
Other liabilities			12,999												10,871
Total liabilities			826,172												765,031
Equity			121,094												89,538
Total liabilities and equity		$	947,266											$	854,569
Net interest income						$	33,267											$	28,386
Net interest income as a percent of average interest-earning assets - GAAP measure											3.93	%											3.74	%
Net interest income as a percent of average interest-earning assets - non GAAP											3.95	%											3.78	%
- Computed on a fully tax equivalent (FTE) basis