SB Financial Group, Inc. Announces Third-Quarter and Nine-Month 2019 Earnings

DEFIANCE, Ohio, Oct. 28, 2019 /PRNewswire/ -- SB Financial Group, Inc. 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 third-quarter and nine months ended September 30, 2019.

Third-quarter 2019 highlights over prior-year third quarter include:

  • Total assets increased to $1.04 billion, up $63.6 million, or 6.5 percent
  • Net income of $3.8 million, up $0.7 million, or 20.7 percent
  • Diluted earnings per share (EPS) of $0.48, up $0.09 per share, or 23.1 percent
  • Tangible book value (TBV) per share increased 9.1 percent to $16.23 per share

Nine months ended September 30, 2019, highlights over prior-year nine months include:

  • Net income of $8.6 million, which is flat to the prior year
  • Net income, adjusted for the mortgage servicing rights impairment of $9.7 million, which is up $1.0 million or 12.1 percent
  • Adjusted EPS of $1.22, which is up $0.08 per share, or 7.0 percent
  • Net interest margin (NIM) of 3.87 percent on a fully tax equivalent basis ("FTE") down 9 basis points

Third quarter 2019, trailing twelve-month highlights include:

  • Loan growth of $51.7 million, or 6.7 percent
  • Deposit growth of $58.5 million, or 7.4 percent
  • Mortgage origination volume of $386.6 million; servicing portfolio of $1.15 billion

 

Highlights

Three Months Ended



Nine Months Ended

($ in thousands, except per share & ratios)

Sep. 2019

Sep. 2018

% Change



Sep. 2019

Sep. 2018

% Change

Operating revenue 

$      14,424

$      12,731

13.3%



$      38,287

$      37,348

2.5%

Interest income 

11,546

10,258

12.6%



33,195

28,840

15.1%

Interest expense

2,488

1,729

43.9%



6,965

4,187

66.3%

Net interest income 

9,058

8,529

6.2%



26,230

24,653

6.4%

Provision for loan losses

300

-

N/M



500

600

-16.7%

Noninterest income

5,366

4,202

27.7%



12,057

12,695

-5.0%

Noninterest expense

9,500

8,789

8.1%



27,234

25,995

4.8%

Net income 

3,762

3,118

20.7%



8,615

8,679

-0.7%

Earnings per diluted share

0.48

0.39

23.1%



1.08

1.14

-5.3%

Return on average assets

1.44%

1.30%

10.8%



1.13%

1.24%

-8.9%

Return on average equity

11.24%

9.89%

13.7%



8.67%

9.75%

-11.1%

















Non-GAAP Measures















Adjusted net income

$        3,762

$        3,167

18.8%



$        9,719

$        8,672

12.1%

Adjusted diluted EPS

0.48

0.40

20.0%



1.22

1.14

7.0%

Adjusted return on average assets

1.44%

1.31%

9.9%



1.23%

1.24%

-0.8%

Net interest margin (FTE)

3.93%

3.96%

-0.8%



3.87%

3.96%

-2.3%

 

"This quarter, we delivered record core quarterly earnings of $0.48 per diluted share, which is up 23 percent from the prior year," said Mark A. Klein, Chairman, President and CEO of SB Financial.  "We originated $158 million in residential mortgage loans, also a quarter record, while growing our loan portfolio nearly $9 million."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 13.3 percent from the third quarter of 2018, and up 15.2 percent from the linked quarter.

  • Net interest income was up 6.2 percent from the year-ago quarter, and up 2.6 percent from the linked quarter. 
  • Net interest margin (FTE) was down 3 basis points from the year-ago quarter, but up 5 basis points from the linked quarter.  
  • Noninterest income was up 27.7 percent from the year-ago quarter, and up 45.4 percent from the linked quarter.

Funding costs, primarily from retail deposits have increased from the prior year and from the linked quarter.  Deposit cost of funds for the most recent quarter of 1.06 percent are up from 0.77 percent in the prior-year quarter.  From the linked quarter, deposit cost of funds are up five basis points from 1.01 percent.

Mortgage Loan Business

Mortgage loan originations for the third quarter of 2019 were $157.9 million, up $62.6 million, or 65.7 percent, from the year-ago quarter.  Total sales of originated loans were $125.4 million, up $44.8 million, or 55.6 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 $2.5 million for the third quarter of 2019, compared to $2.3 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the third quarter of 2019 was zero, compared to a negative adjustment of $0.01 million for the third quarter of 2018.  The aggregate servicing valuation impairment ended the quarter at $1.6 million.  The mortgage servicing portfolio at September 30, 2019, was $1.15 billion, up $0.09 billion, or 8.1 percent, from $1.07 billion at September 30, 2018.

Mr. Klein noted, "Our origination and processing teams achieved record numbers in the quarter as we originated $158 million in volume from nearly 700 clients.  The number of closings in the quarter was higher by 44 percent from the linked quarter and 27 percent higher compared to the prior year third quarter.  We did not book any temporary impairment this quarter, as compared to the $1.4 million we incurred in the first half of 2019.  We are encouraged by current trends and expect the strong volume in the residential business to continue for the remainder of this year."

 

Mortgage Banking











($ in thousands)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Mortgage originations

$     157,947

$       98,447

$       51,417

$       78,829

$       95,289

Mortgage sales

125,386

70,993

43,472

60,345

80,555

Mortgage servicing portfolio

1,153,020

1,112,857

1,094,060

1,084,678

1,066,402

Mortgage servicing rights

10,447

10,264

10,838

11,365

11,129

























Mortgage servicing revenue:











Loan servicing fees

709

691

682

673

653

OMSR amortization

(701)

(460)

(254)

(300)

(318)

Net administrative fees

8

231

428

373

335

OMSR valuation adjustment

-

(690)

(708)

(68)

(62)

Net loan servicing fees

8

(459)

(280)

305

273

Gain on sale of mortgages

2,495

1,678

1,192

1,646

2,066

Mortgage banking revenue, net

$         2,503

$         1,219

$           912

$         1,951

$         2,339

 

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, title insurance revenue and the sale of Small Business Administration (SBA) loans.  SBA activity for the quarter consisted of total loan sales of $2.8 million generating gains of $0.3 million.  Wealth management assets under the Company's care stood at $484.3 million as of September 30, 2019, and the title insurance business delivered revenue of $0.4 million.  For the third quarter of 2019, noninterest income as a percentage of total revenue was 37.2 percent, with the YTD percentage at 33.9 percent when adjusted for the impairment. 

For the third quarter of 2019, noninterest expense (NIE) of $9.5 million was up $0.7 million, or 8.1 percent, compared to the same quarter last year.  Compared to the linked quarter, NIE was also up $0.4 million.  Expense growth was the result of higher mortgage commissions and the addition of our title agency.  We continue to add resources of both technology and personnel in order to meet the expanded needs of our operations, information technology and risk management functions.

 

Noninterest Income / Noninterest Expense 









($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Noninterest Income (NII)

$         5,366

$         3,691

$         3,000

$         3,930

$         4,202

NII / Total Revenue

37.2%

29.5%

26.5%

31.3%

33.0%

NII / Average Assets

2.1%

1.5%

1.2%

1.6%

1.8%













Noninterest Expense (NIE)

$         9,500

$         9,108

$         8,626

$         8,852

$         8,789

Efficiency Ratio

65.9%

72.7%

76.1%

70.6%

69.0%

NIE / Average Assets

3.6%

3.6%

3.5%

3.6%

3.7%

Net Noninterest Expense/Avg. Assets

-1.6%

-2.1%

-2.3%

-2.0%

-1.9%

 

Balance Sheet

Total assets as of September 30, 2019, were $1.04 billion, up $63.6 million, or 6.5 percent, from a year ago.  Total equity as of September 30, 2019, was $134.2 million, up 5.6 percent from a year ago, and comprised 12.9 percent of total assets. 

Total loans held for investment were $823.4 million at September 30, 2019, up $51.7 million, or 6.7 percent, from September 30, 2018, and up $8.9 million for the quarter.  From the prior year, commercial loans were up $25.3 million, or 21.1 percent, with residential real estate rising $21.0 million, or 11.8 percent.

The investment portfolio of $81.7 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 7.8 percent of assets at September 30, 2019.  Deposit balances of $848.0 million at September 30, 2019, increased by $58.5 million, or 7.4 percent, since September 30, 2018.  Growth from the prior year included $18.9 million in checking and $39.6 million in savings, money market and time deposit balances.

Mr. Klein stated, "We took payoffs in our commercial real estate portfolio due to competitive pressure on loan pricing.  We expect to see additional challenges in matching pricing over the coming quarters and continue to experience peer- leading metrics in asset quality, despite a small number of SBA credits that weakened in the quarter."   

 

Loan Balances













($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Annual Growth

Commercial

$       145,147

$       143,798

$       136,201

$       127,640

$       119,810

$         25,337

% of Total

17.6%

17.7%

17.4%

16.5%

15.5%

21.1%

Commercial RE

362,580

360,491

343,900

340,791

356,563

6,017

% of Total

44.0%

44.2%

43.9%

44.2%

46.2%

1.7%

Agriculture

51,946

54,317

50,620

52,012

52,814

(868)

% of Total

6.3%

6.7%

6.5%

6.7%

6.8%

-1.6%

Residential RE

199,036

191,642

187,548

187,104

178,033

21,003

% of Total

24.2%

23.5%

24.0%

24.2%

23.1%

11.8%

Consumer & Other

64,658

64,261

64,254

64,336

64,478

180

% of Total

7.9%

7.9%

8.2%

8.3%

8.4%

0.3%

Total Loans

$       823,367

$       814,509

$       782,523

$       771,883

$       771,698

$         51,669

Total Growth Percentage











6.7%





























Deposit Balances













($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Annual Growth

Non-Int DDA

$       152,932

$       141,216

$       146,327

$       144,592

$       134,747

$         18,185

% of Total

18.0%

16.8%

17.7%

18.0%

17.1%

13.5%

Interest DDA

131,655

129,710

132,101

130,628

130,897

758

% of Total

15.5%

15.5%

16.0%

16.3%

16.6%

0.6%

Savings

121,991

118,931

115,272

104,444

114,213

7,778

% of Total

14.3%

14.1%

13.8%

12.9%

14.4%

6.8%

Money Market

173,237

175,455

175,334

181,426

170,190

3,047

% of Total

20.4%

20.9%

21.2%

22.6%

21.6%

1.8%

Time Deposits

268,139

274,062

258,624

241,462

239,379

28,760

% of Total

31.6%

32.7%

31.2%

30.1%

30.3%

12.0%

Total Deposits

$       847,954

$       839,374

$       827,658

$       802,552

$       789,426

$         58,528

Total Growth Percentage











7.4%

 

Asset Quality

SB Financial's nonperforming assets to total assets ratio of 0.44 percent continues to be in the top quartile of its 65-bank peer group.  The coverage of non performing loans by the loan loss allowance was at 207 percent at September 30, 2019, down from 256 percent at September 30, 2018.

 

Nonperforming Assets











Annual

Change

($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Commercial & Agriculture

$             834

$             674

$             998

$             731

$             360

$             474

% of Total Com./Ag. loans

0.42%

0.34%

0.53%

0.41%

0.21%

131.7%

Commercial RE 

262

208

212

218

228

34

% of Total CRE loans

0.07%

0.06%

0.06%

0.06%

0.06%

14.9%

Residential RE

1,763

1,768

1,612

1,738

1,541

222

% of Total Res. RE loans

0.89%

0.92%

0.86%

0.93%

0.87%

14.4%

Consumer & Other

416

456

325

219

252

164

% of Total Con./Oth. loans  

0.64%

0.71%

0.51%

0.34%

0.39%

65.1%

Total Nonaccruing Loans 

3,275

3,106

3,147

2,906

2,381

894

% of Total loans

0.40%

0.38%

0.40%

0.38%

0.31%

37.5%

Accruing Restructured Loans

825

814

827

928

940

(115)

Total Change (%)











-12.2%

Total Nonaccruing & Restructured Loans

4,100

3,920

3,974

3,834

3,321

779

% of Total loans

0.50%

0.48%

0.51%

0.50%

0.43%

23.5%

Foreclosed Assets

489

530

313

131

105

384

Total Change (%)











365.7%

Total Nonperforming Assets

$          4,589

$          4,450

$          4,287

$          3,965

$          3,426

$          1,163

% of Total assets

0.44%

0.43%

0.42%

0.40%

0.35%

33.9%

Webcast and Conference Call

The Company will hold a related conference call and webcast on October 29, 2019, at 9:30 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) 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 20 offices; 19 in nine Ohio counties and one in Fort Wayne, Indiana, and 25 full-service ATMs.  State Bank has seven 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".  SB Financial's preferred stock is listed on the NASDAQ Capital Market under the symbol "SBFGP".  

In May 2019, SB Financial was ranked #94 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.

Investor Contact Information:

Anthony V. Cosentino 

Executive Vice President and 

Chief Financial Officer

Tony.Cosentino@yoursbfinancial.com

 

 





SB FINANCIAL GROUP, INC.  





CONSOLIDATED BALANCE SHEETS - (Unaudited)







































September



June



March



December



September







($ in thousands)



2019



2019



2019



2018



2018





























ASSETS























Cash and due from banks



$       49,824



$       42,786



$       62,962



$       48,363



$       45,515



Available-for-sale securities



77,029



85,261



95,802



90,969



84,114



Loans held for sale



13,655



9,579



4,346



4,445



6,888



Loans, net of unearned income



823,367



814,509



782,523



771,883



771,698



Allowance for loan losses



(8,492)



(8,306)



(8,121)



(8,167)



(8,489)



Premises and equipment, net



23,898



23,150



23,270



22,084



21,900



Federal Reserve and FHLB Stock, at cost



4,648



4,648



4,123



4,123



4,123



Foreclosed assets held for sale, net



489



530



313



131



105



Interest receivable



3,176



3,209



3,123



2,822



2,433



Goodwill and other intangibles



17,834



17,836



17,838



16,401



16,404



Cash value of life insurance



17,137



17,051



16,966



16,834



16,745



Mortgage servicing rights



10,447



10,264



10,838



11,365



11,129



Other assets



9,749



8,606



7,288



5,575



6,615



































Total assets



$  1,042,761



$  1,029,123



$  1,021,271



$     986,828



$     979,180





















































































LIABILITIES AND SHAREHOLDERS' EQUITY























Liabilities

























Non interest bearing demand



$     152,932



$     141,216



$     146,327



$     144,592



$     134,747





Interest bearing demand



131,655



129,710



132,101



130,628



130,897





Savings



121,991



118,931



115,272



104,444



114,213





Money market



173,237



175,455



175,334



181,426



170,190





Time deposits



268,139



274,062



258,624



241,462



239,379



































Total deposits



847,954



839,374



827,658



802,552



789,426































Repurchase agreements



14,659



13,968



12,255



15,184



15,539



Federal Home Loan Bank advances



16,000



16,000



24,000



16,000



24,500



Trust preferred securities



10,310



10,310



10,310



10,310



10,310



Interest payable



1,391



1,188



1,123



909



891



Other liabilities



18,201



14,346



14,419



11,438



11,405



































Total liabilities



908,515



895,186



889,765



856,393



852,071































Shareholders' Equity

























Preferred stock



13,241



13,978



13,978



13,979



13,979





Common stock



41,223



40,486



40,486



40,485



40,485





Additional paid-in capital



15,219



15,259



15,143



15,226



15,160





Retained earnings



70,184



67,236



65,438



64,012



61,854





Accumulated other comprehensive income (loss)

900



801



124



(552)



(1,654)





Treasury stock



(6,521)



(3,823)



(3,663)



(2,715)



(2,715)



































Total equity



134,246



133,937



131,506



130,435



127,109



































Total liabilities and shareholders' equity



$  1,042,761



$  1,029,123



$  1,021,271



$     986,828



$     979,180

 

 



SB FINANCIAL GROUP, INC.



CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)





































($ in thousands, except per share & ratios)



At and for the Three Months Ended





Nine Months Ended













































September



June



March



December



September





September



September

Interest income





2019



2019



2019



2018



2018





2019



2018



Loans

































  Taxable 



$     10,607



$     10,182



$        9,427



$        9,661



$        9,499





$     30,216



$     26,607



  Tax exempt



82



73



62



55



42





217



99



Securities

































  Taxable 



776



802



911



822



610





2,489



1,795



  Tax exempt



81



94



98



100



107





273



339









































Total interest income



11,546



11,151



10,498



10,638



10,258





33,195



28,840





































Interest expense



































Deposits



2,258



2,092



1,918



1,776



1,472





6,268



3,538



Repurchase agreements & other



22



17



26



10



11





65



27



Federal Home Loan Bank advances



101



100



100



131



140





301



329



Trust preferred securities



107



110



114



107



106





331



293









































Total interest expense



2,488



2,319



2,158



2,024



1,729





6,965



4,187









































































Net interest income



9,058



8,832



8,340



8,614



8,529





26,230



24,653







































Provision for loan losses 



300



200



-



-



-





500



600





































Net interest income after provision































  for loan losses





8,758



8,632



8,340



8,614



8,529





25,730



24,053





































Noninterest income



































Wealth management fees



775



783



734



717



705





2,292



2,155



Customer service fees



729



689



631



679



672





2,049



1,991



Gain on sale of mtg. loans & OMSR



2,495



1,678



1,192



1,646



2,066





5,365



5,224



Mortgage loan servicing fees, net



8



(459)



(280)



305



273





(731)



991



Gain on sale of non-mortgage loans



462



216



327



295



125





1,005



935



Title insurance income



400



308



19



-



-





727



-



Net gain on sales of securities



-



206



-



-



70





206



70



Gain (loss) on sale of assets



1



(5)



(2)



14



-





(6)



21



Other



496



275



379



274



291





1,150



1,308









































Total noninterest income



5,366



3,691



3,000



3,930



4,202





12,057



12,695





































Noninterest expense

































Salaries and employee benefits



5,715



5,305



4,902



5,108



5,372





15,922



15,513



Net occupancy expense



656



627



645



600



588





1,928



1,797



Equipment expense



688



665



711



756



667





2,064



2,133



Data processing fees



499



488



443



466



489





1,430



1,345



Professional fees



571



649



617



532



393





1,837



1,316



Marketing expense



239



246



239



262



197





724



622



Telephone and communication expense

118



112



115



121



124





345



374



Postage and delivery expense



89



81



84



66



83





254



221



State, local and other taxes



243



247



255



180



177





745



538



Employee expense



199



236



153



283



243





588



629



Other expenses



483



452



462



478



456





1,397



1,507









































Total noninterest expense



9,500



9,108



8,626



8,852



8,789





27,234



25,995









































































Income before income tax expense



4,624



3,215



2,714



3,692



3,942





10,553



10,753







































Income tax expense



862



588



488



732



824





1,938



2,074





































Net income 







$        3,762



$        2,627



$        2,226



$        2,960



$        3,118





$        8,615



$        8,679





































Preferred share dividends 



233



243



244



243



244





720



732





































Net income available to common shareholders



3,529



2,384



1,982



2,717



2,874





7,895



7,947





































Common share data:

































Basic earnings per common share



$          0.55



$          0.37



$          0.31



$          0.42



$          0.45





$          1.22



$          1.30







































Diluted earnings per common share



$          0.48



$          0.33



$          0.28



$          0.37



$          0.39





$          1.08



$          1.14





































Average shares outstanding (in thousands):

































Basic:



6,397



6,454



6,482



6,503



6,503





6,459



6,106



Diluted: 



7,876



7,967



7,994



8,030



8,022





7,955



7,626

 

 

SB FINANCIAL GROUP, INC.



Rate Volume Analysis - (Unaudited)



At and for the Three and Nine Months Ended September 30, 2019 and 2018

















($ in thousands)



Three Months Ended Sep. 30, 2019





Three Months Ended Sep. 30, 2018







Average



Average





Average



Average

Assets



Balance

Interest

Rate





Balance

Interest

Rate

























Taxable securities



$            89,782

$                 776

3.46%





$            82,250

$                 610

2.97%



Nontaxable securities



7,879

81

4.11%





11,292

107

3.79%



Loans, net



829,699

10,689

5.15%





770,948

9,541

4.95%

























       Total earning assets



927,360

11,546

4.98%





864,490

10,258

4.75%

























Cash and due from banks



55,039









33,545







Allowance for loan losses



(8,392)









(8,593)







Premises and equipment



23,855









21,850







Other assets



45,929









51,077





























      Total assets



$        1,043,791









$           962,369



























Liabilities





















Savings, MMDA and interest bearing demand



$           434,190

$                 769

0.71%





$           403,236

$                 504

0.50%



Time deposits



272,433

1,489

2.19%





231,884

968

1.67%



Repurchase agreements & other



15,948

22

0.55%





19,293

11

0.23%



Advances from Federal Home Loan Bank



16,000

101

2.53%





24,609

140

2.28%



Trust preferred securities



10,310

107

4.15%





10,310

106

4.11%

























      Total interest bearing liabilities



748,881

2,488

1.33%





689,332

1,729

1.00%

























Non interest bearing demand



143,361

-







134,146

-



























      Total funding



892,242



1.12%





823,478



0.84%

























Other liabilities



17,658









12,747





























      Total liabilities



909,900









836,225





























Equity



133,891









126,144





























      Total liabilities and equity



$        1,043,791









$           962,369





























Net interest income





$              9,058









$              8,529



























Net interest income as a percent of average interest-earning assets - GAAP measure

3.91%









3.95%

























Net interest income as a percent of average interest-earning assets - non GAAP

3.93%









3.96%



 - Computed on a fully tax equivalent (FTE) basis













































Nine Months Ended Sep. 30, 2019





Nine Months Ended Sep. 30, 2018







Average



Average





Average



Average

Assets



Balance

Interest

Rate





Balance

Interest

Rate

























Taxable securities



$            96,013

$              2,489

3.46%





$            81,835

$              1,795

2.92%



Nontaxable securities



8,840

273

4.12%





11,815

339

3.83%



Loans, net



803,431

30,433

5.05%





740,292

26,706

4.81%

























       Total earning assets



908,284

33,195

4.87%





833,942

28,840

4.61%

























Cash and due from banks



46,797









33,137







Allowance for loan losses



(8,303)









(8,318)







Premises and equipment



23,643









21,656







Other assets



49,653









51,090





























      Total assets



$        1,020,074









$           931,507



























Liabilities





















Savings, MMDA and interest bearing demand



$           426,436

$              2,232

0.70%





$           395,948

$              1,063

0.36%



Time deposits



261,362

4,036

2.06%





220,642

2,475

1.50%



Repurchase agreements & Other



15,760

65

0.55%





16,875

27

0.21%



Advances from Federal Home Loan Bank



16,088

301

2.49%





21,987

329

2.00%



Trust preferred securities



10,310

331

4.28%





10,310

293

3.79%

























      Total interest bearing liabilities



729,956

6,965

1.27%





665,762

4,187

0.84%

























Non interest bearing demand



141,537



1.07%





134,566



0.70%

























      Total funding



871,493









800,328





























Other liabilities



16,116









12,461





























      Total liabilities



887,609









812,789





























Equity



132,465









118,718





























      Total liabilities and equity



$        1,020,074









$           931,507





























Net interest income





$            26,230









$            24,653



























Net interest income as a percent of average interest-earning assets - GAAP measure

3.85%









3.94%

























Net interest income as a percent of average interest-earning assets - non GAAP

3.87%









3.96%



 - Computed on a fully tax equivalent (FTE) basis

















 

 



SB FINANCIAL GROUP, INC.









CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)









































($ in thousands, except per share & ratios)





At and for the Three Months Ended





Nine Months Ended









































September



June



March



December



September





September



September

SUMMARY OF OPERATIONS





2019



2019



2019



2018



2018





2019



2018



































   Net interest income 





$        9,058



$        8,832



$        8,340



$        8,614



$        8,529





$       26,230



$       24,653

         Tax-equivalent adjustment





43



44



43



41



40





130



116

   Tax-equivalent net interest income 





9,101



8,876



8,383



8,655



8,569





26,360



24,769

   Provision for loan loss 





300



200



-



-



-





500



600

   Noninterest income





5,366



3,691



3,000



3,930



4,202





12,057



12,695

   Total operating revenue





14,424



12,523



11,340



12,544



12,731





38,287



37,348

   Noninterest expense





9,500



9,108



8,626



8,852



8,789





27,234



25,995

   Pre-tax pre-provision income





4,924



3,415



2,714



3,692



3,942





11,053



11,353

   Pretax income





4,624



3,215



2,714



3,692



3,942





10,553



10,753

   Net income 





3,762



2,627



2,226



2,960



3,118





8,615



8,679

   Income available to common shareholders 





3,529



2,384



1,982



2,717



2,874





7,895



7,947



































PER SHARE INFORMATION:

































   Basic earnings per share (EPS)





0.55



0.37



0.31



0.42



0.45





1.22



1.30

   Diluted earnings per share





0.48



0.33



0.28



0.37



0.39





1.08



1.14

   Common dividends





0.090



0.090



0.085



0.085



0.080





0.265



0.235

   Book value per common share





17.28



16.89



16.57



16.36



15.94





17.28



15.94

   Tangible book value per common share (TBV)





16.23



15.83



15.43



15.39



14.87





16.23



14.87

   Fully converted TBV per common share





14.98



14.64



14.32



14.30



13.88





14.98



13.88

   Market price per common share





16.72



16.46



18.02



16.45



20.35





16.72



20.35

   Market price per preferred share





16.50



16.10



19.00



17.90



20.25





16.50



20.25

   Market price to TBV





103.0%



104.0%



116.8%



106.9%



136.8%





103.0%



136.8%

   Market price to fully converted TBV





111.6%



112.4%



125.8%



115.0%



146.6%





111.6%



146.6%

   Market price to trailing 12 month EPS





11.5



12.1



12.6



11.0



11.5





11.5



11.5



































PERFORMANCE RATIOS:

































   Return on average assets (ROAA)





1.44%



1.03%



0.89%



1.19%



1.30%





1.13%



1.24%

   Pre-tax pre-provision ROAA





1.89%



1.34%



1.08%



1.48%



1.64%





1.44%



1.62%

   Return on average equity





11.24%



7.92%



6.76%



9.21%



9.89%





8.67%



9.75%

   Return on average tangible equity





14.67%



10.41%



8.83%



12.06%



13.02%





11.35%



13.10%

   Efficiency ratio 





65.85%



72.71%



76.05%



70.55%



69.01%





71.12%



69.58%

   Earning asset yield





4.98%



4.88%



4.78%



4.86%



4.75%





4.87%



4.61%

   Cost of interest bearing liabilities





1.33%



1.28%



1.20%



1.15%



1.00%





1.27%



0.84%

   Net interest margin





3.91%



3.86%



3.79%



3.93%



3.95%





3.85%



3.94%

   Tax equivalent effect





0.02%



0.02%



0.02%



0.02%



0.01%





0.02%



0.02%

   Net interest margin, tax equivalent 





3.93%



3.88%



3.81%



3.95%



3.96%





3.87%



3.96%

   Non interest income/Average assets





2.06%



1.45%



1.20%



1.58%



1.75%





1.58%



1.82%

   Non interest expense/Average assets





3.64%



3.58%



3.45%



3.56%



3.65%





3.56%



3.72%

   Net noninterest expense/Average assets





-1.58%



-2.13%



-2.25%



-1.98%



-1.91%





-1.98%



-1.90%



































ASSET QUALITY RATIOS:

































   Gross charge-offs





128



20



60



322



12





208



85

   Recoveries





15



5



13



1



6





33



44

   Net charge-offs





113



15



47



321



6





175



41

   Nonaccruing loans/Total loans





0.40%



0.38%



0.40%



0.38%



0.31%





0.40%



0.31%

   Nonperforming loans/Total loans





0.50%



0.48%



0.51%



0.50%



0.43%





0.50%



0.43%

   Nonperforming assets/Loans & OREO





0.56%



0.55%



0.55%



0.51%



0.44%





0.56%



0.44%

   Nonperforming assets/Total assets





0.44%



0.43%



0.42%



0.40%



0.35%





0.44%



0.35%

   Allowance for loan loss/Nonperforming loans





207.12%



211.89%



204.35%



213.02%



255.62%





207.12%



255.62%

   Allowance for loan loss/Total loans





1.03%



1.02%



1.04%



1.06%



1.10%





1.03%



1.10%

   Net loan charge-offs/Average loans (ann.)





0.05%



0.01%



0.02%



0.17%



0.00%





0.03%



0.01%

   Loan loss provision/Net charge-offs





265.49%



1333.33%



0.00%



0.00%



0.00%





285.71%



1463.41%



































CAPITAL & LIQUIDITY RATIOS:

































   Loans/ Deposits





97.10%



97.04%



94.55%



96.18%



97.75%





97.10%



97.75%

   Equity/ Assets





12.87%



13.01%



12.88%



13.22%



12.98%





12.87%



12.98%

   Tangible equity/Tangible assets





10.07%



10.10%



9.93%



10.31%



10.05%





10.07%



10.05%

   Tangible equity adjusted for conversion





11.36%



11.48%



11.33%



11.75%



11.50%





11.36%



11.50%

   Common equity tier 1 ratio (Bank) 





12.18%



12.53%



12.71%



12.57%



12.16%





12.18%



12.16%



































END OF PERIOD BALANCES

































   Total assets





1,042,761



1,029,123



1,021,271



986,828



979,180





1,042,761



979,180

   Total loans 





823,367



814,509



782,523



771,883



771,698





823,367



771,698

   Deposits





847,954



839,374



827,658



802,552



789,426





847,954



789,426

   Stockholders equity





134,246



133,937



131,506



130,435



127,109





134,246



127,109

   Goodwill & intangibles





17,834



17,836



17,838



16,401



16,404





17,834



16,404

   Preferred equity





13,241



13,978



13,978



13,979



13,979





13,241



13,979

   Tangible equity





103,171



102,123



99,690



100,055



96,726





103,171



96,726

   Mortgage servicing portfolio





1,153,020



1,112,857



1,094,060



1,084,678



1,066,402





1,153,020



1,066,402

   Wealth/Brokerage assets under care





484,295



479,442



462,580



423,289



412,218





484,295



412,218

   Total assets under care





2,680,076



2,621,422



2,577,911



2,494,795



2,457,800





2,680,076



2,457,800

   Full-time equivalent employees (actual)





247



250



256



250



250





247



250

   Period end basic shares outstanding





6,357



6,451



6,460



6,503



6,503





6,357



6,503

   Period end outstanding (Series A Converted)





1,414



1,478



1,475



1,472



1,470





1,414



1,470

   Market capitalization (all)





129,620



130,324



144,898



133,824



162,711





129,620



162,711



































AVERAGE BALANCES

































   Total assets





1,043,791



1,016,493



1,001,282



994,977



962,369





1,020,074



931,507

   Total earning assets 





927,360



914,652



879,394



875,747



864,490





908,284



833,942

   Total loans 





829,699



804,716



775,280



775,060



770,948





803,431



740,292

   Deposits





849,984



827,615



812,190



803,928



769,266





829,335



751,156

   Stockholders equity





133,891



132,734



131,691



128,539



126,144





132,465



118,718

   Intangibles





17,835



17,837



16,880



16,403



16,405





17,518



16,407

   Preferred equity





13,459



13,978



13,979



13,979



13,983





13,771



13,983

   Tangible equity





102,597



100,919



100,832



98,157



95,756





101,176



88,328

   Average basic shares outstanding





6,397



6,454



6,482



6,503



6,503





6,459



6,106

   Average diluted shares outstanding





7,876



7,967



7,994



8,030



8,022





7,955



7,626

 

 

Non-GAAP reconciliation



 Three Months Ended 



 Nine Months Ended 



















($ in thousands, except per share & ratios)



 Sep. 30, 2019 



 Sep. 30, 2018 



 Sep. 30, 2019 



 Sep. 30, 2018 



















Total Revenues



$         14,424



$         12,731



$         38,287



$         37,348

 Adjustment to remove temporary impairment*



-



62



1,398



(8)



















Adjusted Total Revenues



14,424



12,793



39,685



37,340





































Income before Income Taxes



4,624



3,942



10,553



10,753

 Adjustment to remove temporary impairment



-



62



1,398



(8)



















Adjusted Income before Income Taxes



4,624



4,004



11,951



10,745





































Provision for Income Taxes



862



824



1,938



2,074

 Adjustment to remove temporary impairment



-



13



294



(2)



















Adjusted Provision for Income Taxes



862



837



2,232



2,072





































Net Income



3,762



3,118



8,615



8,679

 Adjustment to remove temporary impairment



-



49



1,104



(6)



















Adjusted Net Income



3,762



3,167



9,719



8,672





































Diluted Earnings per Share



0.48



0.39



1.08



1.14

 Adjustment to remove temporary impairment



-



0.01



0.14



(0.00)



















Adjusted Diluted Earnings per Share



$            0.48



$            0.40



$            1.22



$            1.14





































Return on Average Assets



1.44%



1.30%



1.13%



1.24%

 Adjustment to remove temporary impairment



0.00%



0.01%



0.11%



0.00%



















Adjusted Return on Average Assets



1.44%



1.31%



1.23%



1.24%



















* temporary valuation adjustment to the 

















Company's mortgage servicing rights

















 

 

Cision View original content:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-third-quarter-and-nine-month-2019-earnings-300946206.html

SOURCE SB Financial Group, Inc.

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