Exhibit 99.1

 

SB Financial Group Announces Record First Quarter 2021 Results

 

DEFIANCE, OH, April 30, 2021 -- 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, private client and title insurance services today reported earnings for the first quarter ended March 31, 2021.

 

First quarter 2021 highlights over prior-year first quarter include:

 

●

Net income of $7.1 million up $6.4 million or 939.6 percent; diluted earnings per share (“EPS”) of $0.97, up $0.88 per share or 977.8 percent, which was the highest quarterly earnings in Company history

 

●

Adjusted net income, excluding the impact of the Originated Mortgage Servicing Rights (“OMSR”) recapture, was $4.9 million, which yields a decrease in adjusted EPS of $0.29 to $0.68. Adjusted EPS was up $0.37, or 119.4, percent from adjusted EPS in the prior-year quarter

 

●

Mortgage origination volume of $155.8 million, an increase of $54.5 million, or 53.7 percent

 

●

Pre-tax, pre-provision income of $9.6 million, up $8.3 million or 639.7 percent

 

The twelve months ended March 31, 2021, highlights over the prior-year twelve months include:

 

●

Loan growth of $17.4 million, or 2.1 percent, which includes Paycheck Protection Program (“PPP”) loan balances and loans acquired in the Edon acquisition

 

●

Deposit growth of $256.3 million, or 29.7 percent, driven by consumer and small business liquidity and the Edon acquisition

 

●

Mortgage origination volume of $748.7 million; servicing portfolio of $1.3 billion, which is up $87.8 million, or 7.2 percent

 

Highlights		Three Months Ended
($ in thousands, except per share & ratios)		Mar. 2021				Mar. 2020				% Change
Operating revenue		$	20,547			$	10,709				91.9	%
Interest income			10,705				10,644				0.6	%
Interest expense			1,080				2,096				-48.5	%
Net interest income			9,625				8,548				12.6	%
Provision for loan losses			750				600				25.0	%
Noninterest income			10,922				2,161				405.4	%
Noninterest expense			10,909				9,406				16.0	%
Net income			7,081				681				939.8	%
Earnings per diluted share			0.97				0.09				977.8	%
Return on average assets			2.21	%			0.26	%			750.0	%
Return on average equity			19.78	%			1.99	%			894.0	%
Non-GAAP Measures
Adjusted net income		$	4,943			$	2,428				103.6	%
Adjusted diluted EPS			0.68				0.31				119.4	%
Adjusted return on average assets			1.54	%			0.92	%			67.4	%
Adjusted pre-tax, pre-provision income			6,932				3,514				97.3	%

 

“The first quarter marks a record quarter in earnings for our Company. We earned $0.97 per share in the quarter up significantly from the prior year as we recaptured servicing rights impairment and continued to deliver higher mortgage and PPP volume,” said Mark A. Klein, Chairman, President, and CEO of SB Financial. “Our Residential Mortgage group originated strong volume of $156 million, and we processed nearly $40 million of PPP forgiveness from the first phase, while originating over $22 million in the second phase.”

 

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income and noninterest income, was up 91.9 percent from the first quarter of 2020.

 

●

Net interest income was up 12.6 percent from the year-ago quarter, and up 4.0 percent from the linked quarter.

 

●

Net interest margin on a fully taxable equivalent basis (FTE) was down from the year-ago quarter by 27 basis points but was flat to the linked quarter due to higher transactional cash balances, PPP forgiveness realization and mortgage volume. Loan yields were down 12 basis points in total from the prior year as the decline in loan pricing was offset by PPP forgiveness.

 

●

Noninterest income was up 405.4 percent year over year and up 22.7 percent from the linked quarter, due to servicing rights recapture and mortgage volume.

 

Mortgage Loan Business

 

Mortgage loan originations for the first quarter of 2021 were $155.8 million, up $54.5 million, or 53.7 percent, from the year-ago quarter. Total sales of originated loans were $136.7 million, up $52.2 million, or 61.8 percent. For the trailing twelve months, SB Financial had total volume of $694.2 million, of which $290.9 million (42 percent) was new purchase/construction lending, $217.0 million (31 percent) was internal refinance, and the remaining $186.3 million (27 percent) was new customer refinance volume.

 

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $8.2 million for the first quarter of 2021, compared to a loss of $0.1 million for the year-ago quarter. The mortgage servicing valuation adjustment for the first quarter of 2021 was a positive $2.7 million, compared to a negative adjustment of $2.2 million for the first quarter of 2020. The aggregate servicing valuation impairment ended the quarter at $2.2 million. The servicing portfolio at March 31, 2021, was $1.3 billion up $87.8 million or 7.2 percent, from $1.2 billion at March 31, 2020. Normal amortization was up 99 percent from the prior year due to higher refinance activity.

 

Mr. Klein noted, “Carrying the momentum from a record breaking 2020, we originated $156 million in residential mortgages in the quarter. Gain on sale yields remained robust and our hedge allowed us to manage the volatility of the rate fluctuations throughout the quarter. We did see more competitive pricing in the quarter and the availability of homes for purchase in several of our markets continues to be a strain on activity. Refinance volume also maintained a strong pace in the quarter at over 62 percent of our total volume.”

 

Mortgage Banking
($ in thousands)		Mar. 2021				Dec. 2020				Sep. 2020				Jun. 2020				Mar. 2020
Mortgage originations		$	155,836			$	168,997			$	200,158			$	223,671			$	101,365
Mortgage sales			136,708				143,151				166,201				204,628				84,476
Mortgage servicing portfolio			1,304,097				1,299,698				1,293,037				1,261,746				1,216,292
Mortgage servicing rights			10,490				7,759				8,535				8,168				8,974
Mortgage servicing revenue
Loan servicing fees			859				857				813				782				757
OMSR amortization			(1,187	)			(1,283	)			(1,308	)			(1,574	)			(597	)
Net administrative fees			(328	)			(426	)			(495	)			(792	)			160
OMSR valuation adjustment			2,706				(611	)			326				(1,088	)			(2,212	)
Net loan servicing fees			2,378				(1,037	)			(169	)			(1,880	)			(2,052	)
Gain on sale of mortgages			5,859				7,197				8,085				8,119				1,949
Mortgage banking revenue, net		$	8,237			$	6,160			$	7,916			$	6,239			$	(103	)

 

 

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) and U.S. Department of Agriculture (USDA) loans. Wealth management assets under the Company’s care were $576.5 million as of March 31, 2021, up $149.4 million, or 35.0 percent, compared to the prior year. For the first quarter of 2021, noninterest income as a percentage of total operating revenue was 53.2 percent, due to the recapture, with the adjusted level at 46.1 percent. Reflective of the robust mortgage market, the Company’s Title Agency provided revenue in the quarter of $0.5 million, nearly double from the prior year.

 

For the first quarter of 2021, noninterest expense of $10.9 million was up $1.5 million year over year, or 16.0 percent, reflecting a 5.7 times positive operating leverage. Mortgage commission was up due to the 55 percent increase in volume, and we have expanded our technology spend in order to increase the digital options for both our clients and employees.

 

Mr. Klein stated, “The recapture of over one half of our servicing rights impairment drove our non-interest income levels significantly higher in the quarter. We saw higher than expected mortgage volume in the quarter, which was up 55 percent from the prior year and only down 7 percent from the linked quarter. Due to the strong revenue for the quarter, operating leverage was a positive 5.7 times. After our participation in the first phase of PPP with $84 million in originations, we are assisting small businesses again with $28 million thus far in originations in the second phase. Operating expense was up due to increased mortgage volume, however we are still below anticipated expense levels for marketing and client outreach.”

 

Noninterest Income / Noninterest Expense
($ in thousands, except ratios)		Mar. 2021				Dec. 2020				Sep. 2020				Jun. 2020				Mar. 2020
Noninterest Income (NII)		$	10,922			$	8,902			$	10,418			$	8,615			$	2,161
NII / Total Revenue			53.2	%			49.0	%			52.9	%			49.3	%			20.2	%
NII / Average Assets			3.4	%			2.9	%			3.4	%			3.0	%			0.8	%
Total Revenue Growth			91.9	%			24.7	%			36.4	%			39.6	%			-5.6	%
Noninterest Expense (NIE)		$	10,909			$	10,684			$	11,335			$	11,662			$	9,406
Efficiency Ratio			53.0	%			58.8	%			57.5	%			66.7	%			87.8	%
NIE / Average Assets			3.4	%			3.5	%			3.7	%			4.0	%			3.5	%
Net Noninterest Expense/Avg. Assets			0.0	%			-0.6	%			-0.3	%			-1.0	%			-2.7	%
Total Expense Growth			16.0	%			5.0	%			19.3	%			28.0	%			9.0	%
Operating Leverage			5.7				4.9				1.9				1.4				-0.6

 

 

Balance Sheet

 

Total assets as of March 31, 2021, were $1.33 billion, up $237.6 million, or 21.8 percent, from the year ago quarter due to the impact of the Edon acquisition and PPP activity. Total equity as of March 31, 2021, was $144.0 million, up 5.9 percent from a year ago, and comprised 10.9 percent of total assets.

 

Total loans held for investment were $848.2 million at March 31, 2021, up $17.4 million, or 2.1 percent, from March 31, 2020. Commercial loans were up $27.6 million, or 18.2 percent, commercial real estate up $7.2 million or 1.9 percent and agricultural loans increased $0.7 million, or 1.6 percent. Absent the effects of the Edon acquisition and PPP loans, loan balances were down $51.4 million from the year ago quarter.

 

The investment portfolio of $183.2 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 13.8 percent of assets at March 31, 2021, and was up 63.0 percent from the year-ago period. Deposit balances of $1.12 billion at March 31, 2021, increased by $256.3 million, or 29.7 percent, since March 31, 2020. Growth from the prior year included $160.0 million in checking and $96.3 million in savings and time deposit balances.

 

Mr. Klein continued, “Asset quality remained stable, with non-performing assets down 11 percent from the linked quarter and net recoveries this quarter in loan losses. Despite these strong metrics, we continued to add to our allowance due to potential long term impact from the pandemic. Our reserve level is now at $13.3 million and when adjusted for PPP balances represents a strong 1.68 percent of our total loans.”

 

Loan Balances
($ in thousands, except ratios)		Mar. 2021				Dec. 2020				Sep. 2020				Jun. 2020				Mar. 2020				Annual Growth
Commercial		$	179,157			$	203,256			$	216,667			$	222,108			$	151,538			$	27,619
% of Total			21.1	%			23.3	%			24.5	%			24.6	%			18.2	%			18.2	%
Commercial RE			385,403				370,984				371,947				375,450				378,212				7,191
% of Total			45.4	%			42.5	%			42.0	%			41.6	%			45.5	%			1.9	%
Agriculture			48,405				55,251				57,420				58,817				47,660				745
% of Total			5.7	%			6.3	%			6.5	%			6.5	%			5.7	%			1.6	%
Residential RE			176,998				182,076				178,393				184,684				189,738				(12,740	)
% of Total			20.9	%			20.9	%			20.1	%			20.6	%			22.9	%			-6.7	%
Consumer & Other			58,213				61,156				61,423				60,489				63,616				(5,403	)
% of Total			6.9	%			7.0	%			6.9	%			6.7	%			7.7	%			-8.5	%
Total Loans		$	848,176			$	872,723			$	885,850			$	901,548			$	830,764			$	17,412
Total Growth Percentage																							2.1	%

 

Deposit Balances
($ in thousands, except ratios)		Mar. 2021				Dec. 2020				Sep. 2020				Jun. 2020				Mar. 2020				Annual Growth
Non-Int DDA		$	273,026			$	251,649			$	225,003			$	229,042			$	170,920			$	102,106
% of Total			24.4	%			24.0	%			22.2	%			23.1	%			19.8	%			59.7	%
Interest DDA			191,593				176,785				164,248				154,143				133,722				57,871
% of Total			17.1	%			16.9	%			16.2	%			15.6	%			15.5	%			43.3	%
Savings			218,260				174,864				169,474				161,182				138,863				79,397
% of Total			19.5	%			16.7	%			16.7	%			16.2	%			16.0	%			57.2	%
Money Market			249,088				216,164				204,862				189,380				169,209				79,879
% of Total			22.2	%			20.6	%			20.2	%			19.1	%			19.6	%			47.2	%
Time Deposits			188,229				229,549				250,428				256,840				251,177				(62,948	)
% of Total			16.8	%			21.9	%			24.7	%			25.9	%			29.2	%			-25.1	%
Total Deposits		$	1,120,196			$	1,049,011			$	1,014,015			$	990,587			$	863,891			$	256,305
Total Growth Percentage																							29.7	%

 

 

Asset Quality

 

SB Financial reported nonperforming assets of $6.5 million as of March 31, 2021, down $0.2 million from the year-ago quarter. The coverage of nonperforming loans by the loan loss allowance was at 207 percent at March 31, 2021, up from 136 percent at March 31, 2020.

 

Nonperforming Assets
($ in thousands, except ratios)		Mar. 2021				Dec. 2020				Sep. 2020				Jun. 2020				Mar. 2020				Annual Change
Commercial & Agriculture		$	615			$	902			$	1,140			$	1,204			$	1,309			$	(694	)
% of Total Com./Ag. loans			0.27	%			0.35	%			0.42	%			0.43	%			0.66	%			-53.0	%
Commercial RE			2,402				2,412				2,475				2,484				1,816				586
% of Total CRE loans			0.62	%			0.65	%			0.67	%			0.66	%			0.48	%			32.3	%
Residential RE			2,138				2,704				2,481				2,538				2,330				(192	)
% of Total Res. RE loans			1.21	%			1.49	%			1.39	%			1.37	%			1.23	%			-8.2	%
Consumer & Other			480				408				313				308				327				153
% of Total Con./Oth. loans			0.82	%			0.67	%			0.51	%			0.51	%			0.51	%			46.8	%
Total Nonaccruing Loans			5,635				6,426				6,409				6,534				5,782				(147	)
% of Total loans			0.66	%			0.74	%			0.72	%			0.72	%			0.70	%			-2.5	%
Accruing Restructured Loans			794				810				789				804				816				(22	)
Total Change (%)																							-2.7	%
Total Nonaccruing & Restructured Loans			6,429				7,236				7,198				7,338				6,598				(169	)
% of Total loans			0.76	%			0.83	%			0.81	%			0.81	%			0.79	%			-2.6	%
Foreclosed Assets			43				23				76				382				85				(42	)
Total Change (%)																							-49.4	%
Total Nonperforming Assets		$	6,472			$	7,259			$	7,274			$	7,720			$	6,683			$	(211	)
% of Total assets			0.49	%			0.58	%			0.60	%			0.64	%			0.61	%			-3.2	%

 

The Company continued to provide payment relief to clients as needed, with total commercial forbearances at March 31, 2021 of $4.9 million. Additionally, sold mortgage loans in forbearance totaled $5.7 million, which is down $6.0 million from the linked quarter.

 

Loans in COVID Deferral Status
($ in thousands, except ratios)		Mar. 2021				Dec. 2020				Sep. 2020				Jun. 2020				Linked Qtr. Change
Total Commercial		$	4,883			$	23,175			$	36,366			$	142,682			$	(18,292	)
Total Consumer			-				-				28				350				-
Total Portfolio Mortgage			-				-				1,959				10,274				-
Total Balance Sheet Deferrals		$	4,883			$	23,175			$	38,353			$	153,306			$	(18,292	)
% of Total loans			0.58	%			2.66	%			4.33	%			17.00	%			-16.43	%
Total Sold Mortgage		$	5,705			$	11,685			$	42,317			$	41,751			$	(5,980	)

 

Webcast and Conference Call

 

The Company will hold a related conference call and webcast on May 3, 2021, 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 ir.yourstatebank.com. An audio replay of the call will be available on the Company’s 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) and SBFG Title, LLC dba Peak Title (Peak Title). 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 22 offices; 21 in nine Ohio counties and one in Fort Wayne, Indiana, and 23 full-service ATMs. State Bank has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.

 

In May 2020, SB Financial was ranked #125 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, the duration and scope of the COVID-19 outbreak in the United States and the market areas in which SB Financial and its subsidiaries operate, including the impact to the state and local economies of prolonged shelter in place orders and the pandemic generally, 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 pre-tax, pre-provision income, 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. In addition, the Company excludes the non-GAAP items of OMSR impairment and merger related costs from net income to report an adjusted net income level. 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.

 

Investor Contact Information:

 

Mark A. Klein

Chairman, President and

Chief Executive Officer

Mark.Klein@YourStateBank.com

 

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

 

###

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		March				December				September				June				March
($ in thousands)		2021				2020				2020				2020				2020
ASSETS
Cash and due from banks		$	206,036			$	140,690			$	94,641			$	85,661			$	56,393
Interest bearing time deposits			3,562				5,823				8,956				10,542				-
Available-for-sale securities			177,918				149,406				130,315				104,289				107,727
Loans held for sale			8,689				7,234				13,943				13,742				11,328
Loans, net of unearned income			848,176				872,723				885,850				901,548				830,764
Allowance for loan losses			(13,326	)			(12,574	)			(11,793	)			(10,013	)			(8,958	)
Premises and equipment, net			23,233				23,557				23,785				23,662				23,599
Federal Reserve and FHLB Stock, at cost			5,303				5,303				5,303				4,837				4,648
Foreclosed assets held for sale, net			43				23				76				382				85
Interest receivable			3,371				3,799				4,159				4,272				2,940
Goodwill			22,091				22,091				22,091				22,117				17,792
Cash value of life insurance			17,651				17,530				17,453				17,375				17,299
Mortgage servicing rights			10,490				7,759				8,535				8,168				8,974
Other assets			12,630				14,475				14,927				16,354				15,722
Total assets		$	1,325,867			$	1,257,839			$	1,218,241			$	1,202,936			$	1,088,313
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand		$	273,026			$	251,649			$	225,003			$	229,042			$	170,920
Interest bearing demand			191,593				176,785				164,248				154,143				133,722
Savings			218,260				174,864				169,474				161,182				138,863
Money market			249,088				216,164				204,862				189,380				169,209
Time deposits			188,229				229,549				250,428				256,840				251,177
Total deposits			1,120,196				1,049,011				1,014,015				990,587				863,891
Short-term borrowings			24,321				20,189				20,710				23,826				36,881
Federal Home Loan Bank advances			8,000				8,000				8,000				13,000				16,000
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Interest payable			489				616				946				929				1,131
Other liabilities			18,585				26,790				22,913				26,403				24,195
Total liabilities			1,181,901				1,114,916				1,076,894				1,065,055				952,408
Shareholders’ Equity
Common stock			54,463				54,463				54,463				54,463				54,463
Additional paid-in capital			14,755				14,845				14,782				14,780				14,655
Retained earnings			90,883				84,578				80,012				75,526				72,641
Accumulated other comprehensive income (loss)			(457	)			2,210				2,221				2,320				2,049
Treasury stock			(15,678	)			(13,173	)			(10,131	)			(9,208	)			(7,903	)
Total shareholders’ equity			143,966				142,923				141,347				137,881				135,905
Total liabilities and shareholders’ equity		$	1,325,867			$	1,257,839			$	1,218,241			$	1,202,936			$	1,088,313

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands, except per share & ratios)		At and for the Three Months Ended
		March				December				September				June				March
Interest income		2021				2020				2020				2020				2020
Loans
Taxable		$	9,926			$	9,816			$	10,179			$	9,945			$	9,795
Tax exempt			48				54				47				59				79
Securities
Taxable			643				632				494				510				692
Tax exempt			88				87				87				81				78
Total interest income			10,705				10,589				10,807				10,595				10,644
Interest expense
Deposits			962				1,218				1,423				1,549				1,880
Repurchase agreements & other			11				10				12				20				28
Federal Home Loan Bank advances			56				58				59				92				100
Trust preferred securities			51				52				54				62				88
Total interest expense			1,080				1,338				1,548				1,723				2,096
Net interest income			9,625				9,251				9,259				8,872				8,548
Provision for loan losses			750				800				1,800				1,300				600
Net interest income after provision for loan losses			8,875				8,451				7,459				7,572				7,948
Noninterest income
Wealth management fees			912				863				839				775				768
Customer service fees			758				728				730				667				682
Gain on sale of mtg. loans & OMSR			5,859				7,197				8,085				8,119				1,949
Mortgage loan servicing fees, net			2,378				(1,037	)			(169	)			(1,880	)			(2,052	)
Gain on sale of non-mortgage loans			17				123				119				107				104
Title insurance revenue			521				522				517				609				265
Gain (loss) on sale of assets			(2	)			181				(52	)			(80	)			(46	)
Other			479				325				349				298				491
Total noninterest income			10,922				8,902				10,418				8,615				2,161
Noninterest expense
Salaries and employee benefits			6,620				6,556				6,995				6,419				5,427
Net occupancy expense			740				782				736				675				698
Equipment expense			732				818				888				780				700
Data processing fees			534				633				586				1,288				548
Professional fees			764				631				695				1,224				757
Marketing expense			135				172				137				141				208
Telephone and communication expense			154				156				142				122				115
Postage and delivery expense			111				108				96				96				115
State, local and other taxes			323				299				331				262				254
Employee expense			153				103				155				93				184
Other expenses			643				426				574				562				400
Total noninterest expense			10,909				10,684				11,335				11,662				9,406
Income before income tax expense			8,888				6,669				6,542				4,525				703
Income tax expense			1,807				1,311				1,292				870				22
Net income available to common shareholders		$	7,081			$	5,358			$	5,250			$	3,655			$	681
Common share data:
Basic earnings per common share		$	0.97			$	0.71			$	0.69			$	0.47			$	0.09
Diluted earnings per common share		$	0.97			$	0.71			$	0.69			$	0.47			$	0.09
Average shares outstanding (in thousands):
Basic:			7,317				7,487				7,607				7,708				7,749
Diluted:			7,335				7,487				7,607				7,708				7,756

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share & ratios)		At and for the Three Months Ended
		March				December				September				June				March
SUMMARY OF OPERATIONS		2021				2020				2020				2020				2020
Net interest income		$	9,625			$	9,251			$	9,259			$	8,872			$	8,548
Tax-equivalent adjustment			36				37				36				37				42
Tax-equivalent net interest income			9,661				9,288				9,295				8,909				8,590
Provision for loan loss			750				800				1,800				1,300				600
Noninterest income			10,922				8,902				10,418				8,615				2,161
Total operating revenue			20,547				18,153				19,677				17,487				10,709
Noninterest expense			10,909				10,684				11,335				11,662				9,406
Pre-tax pre-provision income			9,638				7,469				8,342				5,825				1,303
Pretax income			8,888				6,669				6,542				4,525				703
Net income			7,081				5,358				5,250				3,655				681
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.97				0.71				0.69				0.47				0.09
Diluted earnings per share			0.97				0.71				0.69				0.47				0.09
Common dividends			0.105				0.105				0.100				0.100				0.095
Book value per common share			19.88				19.39				18.73				17.98				17.64
Tangible book value per common share (TBV)			16.74				16.30				15.72				15.01				15.32
Market price per common share			18.26				18.28				13.49				16.62				11.12
Market price to TBV			109.1	%			112.1	%			85.8	%			110.8	%			72.6	%
Market price to trailing 12 month EPS			6.4				9.3				8.0				11.4				8.4
PERFORMANCE RATIOS:
Return on average assets (ROAA)			2.21	%			1.73	%			1.73	%			1.25	%			0.26	%
Pre-tax pre-provision ROAA			3.01	%			2.41	%			2.74	%			1.99	%			0.49	%
Return on average equity			19.78	%			15.05	%			15.01	%			10.31	%			1.99	%
Return on average tangible equity			23.52	%			17.91	%			17.93	%			11.91	%			2.29	%
Efficiency ratio			53.01	%			58.76	%			57.48	%			66.68	%			87.81	%
Earning asset yield			3.56	%			3.66	%			3.96	%			3.95	%			4.32	%
Cost of interest bearing liabilities			0.50	%			0.64	%			0.75	%			0.89	%			1.12	%
Net interest margin			3.20	%			3.20	%			3.39	%			3.30	%			3.47	%
Tax equivalent effect			0.01	%			0.01	%			0.02	%			0.02	%			0.01	%
Net interest margin, tax equivalent			3.21	%			3.21	%			3.41	%			3.32	%			3.48	%
Non interest income/Average assets			3.41	%			2.87	%			3.42	%			2.95	%			0.81	%
Non interest expense/Average assets			3.40	%			3.45	%			3.73	%			3.99	%			3.54	%
Net noninterest expense/Average assets			0.00	%			-0.58	%			-0.30	%			-1.04	%			-2.73	%
ASSET QUALITY RATIOS:
Gross charge-offs			52				57				32				254				400
Recoveries			54				39				11				10				3
Net charge-offs			(2	)			18				21				244				397
Nonaccruing loans/Total loans			0.66	%			0.74	%			0.72	%			0.72	%			0.70	%
Nonperforming loans/Total loans			0.76	%			0.83	%			0.81	%			0.81	%			0.79	%
Nonperforming assets/Loans & OREO			0.76	%			0.83	%			0.82	%			0.86	%			0.80	%
Nonperforming assets/Total assets			0.49	%			0.58	%			0.60	%			0.64	%			0.61	%
Allowance for loan loss/Nonperforming loans			207.28	%			173.77	%			163.84	%			136.45	%			135.77	%
Allowance for loan loss/Total loans			1.57	%			1.44	%			1.33	%			1.11	%			1.08	%
Net loan charge-offs/Average loans (ann.)			(0.00	%)			0.01	%			0.01	%			0.11	%			0.19	%
Loan loss provision/Net charge-offs			(37500.00	%)			4444.44	%			8571.43	%			532.79	%			151.13	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			75.72	%			83.19	%			87.36	%			91.01	%			96.17	%
Equity/ Assets			10.86	%			11.36	%			11.60	%			11.46	%			12.49	%
Tangible equity/Tangible assets			9.30	%			9.73	%			9.92	%			9.75	%			11.03	%
Common equity tier 1 ratio (Bank)			13.08	%			12.91	%			12.71	%			11.97	%			12.17	%
END OF PERIOD BALANCES
Total assets			1,325,867				1,257,839				1,218,241				1,202,936				1,088,313
Total loans			848,176				872,723				885,850				901,548				830,764
Deposits			1,120,196				1,049,011				1,014,015				990,587				863,891
Stockholders equity			143,966				142,923				141,347				137,881				135,905
Goodwill and intangibles			22,728				22,745				22,763				22,813				17,830
Tangible equity			121,238				120,178				118,584				115,068				118,075
Mortgage servicing portfolio			1,304,097				1,299,698				1,293,037				1,261,746				1,216,292
Wealth/Brokerage assets under care			576,503				558,409				522,360				495,025				427,129
Total assets under care			3,206,467				3,115,946				3,033,638				2,959,707				2,731,734
Full-time equivalent employees			246				244				251				254				253
Period end common shares outstanding			7,242				7,372				7,545				7,668				7,705
Market capitalization (all)			132,239				134,760				101,782				127,442				85,680
AVERAGE BALANCES
Total assets			1,281,635				1,238,790				1,216,843				1,169,030				1,061,365
Total earning assets			1,203,284				1,156,718				1,090,386				1,073,490				986,216
Total loans			862,898				893,244				907,483				898,216				832,975
Deposits			1,073,641				1,031,649				1,007,679				946,053				855,272
Stockholders equity			143,167				142,418				139,908				141,821				136,930
Goodwill and intangibles			22,736				22,754				22,787				19,066				17,831
Tangible equity			120,431				119,664				117,121				122,755				119,099
Average basic shares outstanding			7,317				7,487				7,607				7,708				7,749
Average diluted shares outstanding			7,335				7,487				7,607				7,708				7,756

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended March 31, 2021 and 2020

 

 

($ in thousands)		Three Months Ended Mar. 31, 2021												Three Months Ended Mar. 31, 2020
		Average								Average				Average								Average
Assets		Balance				Interest				Rate				Balance				Interest				Rate
Taxable securities/Cash		$	332,824			$	643				0.77	%		$	146,678			$	692				1.89	%
Nontaxable securities			7,562				88				4.65	%			6,563				78				4.75	%
Loans, net			862,898				9,974				4.62	%			832,975				9,874				4.74	%
Total earning assets			1,203,284				10,705				3.56	%			986,216				10,644				4.32	%
Cash and due from banks			7,775												5,512
Allowance for loan losses			(12,843	)											(8,867	)
Premises and equipment			23,503												23,698
Other assets			59,916												54,806
Total assets		$	1,281,635											$	1,061,365
Liabilities
Savings, MMDA and interest bearing demand		$	614,802			$	508				0.33	%		$	442,438			$	1,083				0.98	%
Time deposits			206,903				454				0.88	%			254,342				797				1.25	%
Repurchase agreements & other			24,134				11				0.18	%			22,537				28				0.50	%
Advances from Federal Home Loan Bank			8,000				56				2.80	%			16,132				100				2.48	%
Trust preferred securities			10,310				51				1.98	%			10,310				88				3.41	%
Total interest bearing liabilities			864,149				1,080				0.50	%			745,759				2,096				1.12	%
Non interest bearing demand			251,936				-								158,492				-
Total funding			1,116,085								0.39	%			904,251								0.93	%
Other liabilities			22,383												20,184
Total liabilities			1,138,468												924,435
Equity			143,167												136,930
Total liabilities and equity		$	1,281,635											$	1,061,365
Net interest income						$	9,625											$	8,548
Net interest income as a percent of average interest-earning assets - GAAP measure											3.20	%											3.47	%
Net interest income as a percent of average interest-earning assets - non GAAP											3.21	%											3.48	%
- Computed on a fully tax equivalent (FTE) basis

 

 

Non-GAAP reconciliation		Three Months Ended
($ in thousands, except per share & ratios)		Mar. 31, 2021				Mar. 31, 2020
Total Operating Revenue		$	20,547			$	10,709
Adjustment to (deduct)/add OMSR impairment*			(2,706	)			2,212
Adjusted Total Operating Revenue			17,841				12,921
Income before Income Taxes			8,888				703
Adjustment for OMSR			(2,706	)			2,212
Adjusted Income before Income Taxes			6,182				2,915
Provision for Income Taxes			1,807				22
Adjustment for OMSR**			(568	)			465
Adjusted Provision for Income Taxes			1,239				487
Net Income			7,081				681
Adjustment for OMSR			(2,138	)			1,747
Adjusted Net Income			4,943				2,428
Diluted Earnings per Share			0.97				0.09
Adjustment for OMSR			(0.29	)			0.22
Adjusted Diluted Earnings per Share		$	0.68			$	0.31
Return on Average Assets			2.21	%			0.26	%
Adjustment for OMSR			-0.67	%			0.66	%
Adjusted Return on Average Assets			1.54	%			0.92	%

 

*

valuation adjustment to the Company’s mortgage servicing rights

 

**

tax effect is calculated using a 21% statutory federal corporate income tax rate

 

 

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