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SB Financial Group, Inc. Announces Second-Quarter and Six-Month 2018 Earnings

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SB Financial Group, Inc. Announces Second-Quarter and Six-Month 2018 Earnings

Net income growth of 34% and loan growth of 16%

PR Newswire

DEFIANCE, Ohio, July 19, 2018 /PRNewswire/ -- 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 second-quarter ended June 30, 2018.

Second-quarter 2018 highlights over prior-year second quarter include:

  • Total assets increased to $944.8 million, up $97.1 million, or 11.5 percent
  • Net income of $3.1 million, an increase of 34.1 percent
  • Operating revenue of $12.7 million, up $1.2 million, or 10.9 percent
  • Return on average assets of 1.35 percent, up 26 basis points, or 23.9 percent
  • Diluted earnings per share (EPS) of $0.40, an increase of $0.03 per share, or 8.1 percent

Six months ended June 30, 2018, highlights over prior-year six months include:

  • Net income of $5.6 million, an increase of $1.3 million, or 29.0 percent
  • Operating revenue of $24.6 million, up $2.9 million, or 13.3 percent
  • Return on average assets of 1.21 percent, up 18 basis points, or 17.5 percent
  • Diluted EPS of $0.75, an increase of $0.07 per share, or 10.3 percent

Second-quarter 2018, trailing twelve-month highlights include:

  • Loan growth of $101.7 million, or 15.6 percent
  • Deposit growth of $45.5 million, or 6.4 percent
  • Mortgage origination volume of $109.5 million, an increase of $11.7 million, or 11.9 percent; servicing portfolio of $1.03 billion, up $0.08 billion, or 8.2 percent

 

Highlights

Three Months Ended


  Six Months Ended


($ in thousands, except per share & ratios)

Jun. 2018

Jun. 2017

% Change

Jun. 2018

Jun. 2017

% Change

Operating revenue 

$12,673

$11,425

10.9%

$24,616

$21,733

13.3%

Interest income 

9,731

7,966

22.2

18,583

15,380

20.8

Interest expense

1,307

1,003

30.3

2,459

1,911

28.7

Net interest income 

8,424

6,963

21.0

16,124

13,469

19.7

Noninterest income

4,249

4,462

-4.8

8,492

8,264

2.8

Noninterest expense

8,579

7,806

9.9

17,206

15,188

13.3

Net income 

3,107

2,317

34.1

5,560

4,310

29.0

Earnings per diluted share

0.40

0.37

8.1

0.75

0.68

10.3

Net interest margin (FTE)

4.14%

3.73%

11.0

3.89%

3.66%

6.3

Return on average assets

1.35%

1.09%

23.9

1.21%

1.03%

17.5

Return on average equity

10.02%

10.45%

-4.1

9.64%

9.80%

-1.6








"SB Financial Group's second-quarter net income was up 34 percent compared to the prior-year quarter," said Mark A. Klein, Chairman, President and CEO of SB Financial.  Our operating results included a very strong loan growth quarter, as we added over $46 million.  From the prior year, our loan book is up nearly $102 million.  This growth coincided with a further reduction in our nonperforming assets to 34 basis points."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 10.9 percent from the second quarter of 2017, and up 6.1 percent from the linked quarter.

  • Net interest income was up 21.0 percent from the year-ago quarter, and up 9.4 percent from the linked quarter.
  • Net interest margin (FTE) was up 41 basis points from the year-ago quarter, and up 28 basis points from the linked quarter.
  • Noninterest income was down 4.8 percent from the year-ago quarter, and flat to the linked quarter.

Mortgage Loan Business

Mortgage loan originations for the second quarter of 2018 were $109.5 million, up $11.7 million, or 11.9 percent, from the year-ago quarter.  Total sales of originated loans were $79.2 million, down $0.8 million, or 1.1 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 $2.3 million for the second quarter of 2018, compared to $2.3 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the second quarter 2018 was a negative $0.02 million, compared to a negative adjustment of $0.04 million for the second quarter of 2017.  The aggregate servicing valuation impairment ended the quarter at $0.08 million.  The mortgage-servicing portfolio at June 30, 2018, was $1.03 billion, up $0.08 billion, or 8.2 percent, from $0.95 billion at June 30, 2017.

Mr. Klein noted, "Our residential mortgage business rebounded nicely this quarter.  Due to the rate curve, more of our clients chose variable rate products, which drove our portfolio balances higher.  We have continued to add origination staff in our growth markets."

Mortgage Banking






($ in thousands)

Jun. 2018

Mar. 2018

Dec. 2017

Sep. 2017

Jun. 2017

Mortgage originations

$109,466

$58,485

$72,102

$89,217

$97,804

Mortgage sales

79,162

40,589

53,825

76,919

80,038

Mortgage servicing portfolio

1,030,780

1,004,728

994,915

979,251

952,364

Mortgage servicing rights

10,633

10,196

9,907

9,560

9,217







Mortgage servicing revenue:






Loan servicing fees

636

625

617

605

583

OMSR amortization

(367)

(246)

(269)

(343)

(303)

Net administrative fees

269

379

348

262

280

OMSR valuation adjustment

(22)

92

117

(35)

(39)

Net loan servicing fees

247

471

465

227

241

Gain on sale of mortgages

2,058

1,100

1,608

2,211

2,063

Mortgage banking revenue, net

$2,305

$1,571

$2,073

$2,438

$2,304

Noninterest Income and Noninterest Expense

SB Financial's noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales and the sale of Small Business Administration loans (SBA).  SBA activity for the quarter consisted of total loan volume of $0.9 million and gains of $0.1 million.  Wealth management assets under the Company's care stood at $407.6 million as of June 30, 2018.  For the second quarter of 2018, noninterest income as a percentage of total revenue was 33.5 percent. 

For the second quarter of 2018, noninterest expense (NIE) of $8.6 million was up $0.8 million, or 9.9 percent, compared to the same quarter last year.  Compared to the linked quarter, NIE was down less than $0.1 million

Noninterest Income / Noninterest Expense 





($ in thousands, except ratios)

Jun. 2018

Mar. 2018

Dec. 2017

Sep. 2017

Jun. 2017

Noninterest Income (NII)

$4,249

$4,243

$4,092

$4,861

$4,462

NII / Total Revenue

33.5%

35.5%

34.8%

40.1%

39.1%

NII / Average Assets

1.8%

1.9%

1.9%

2.3%

2.1%







Noninterest Expense (NIE)

$8,579

$8,627

$8,106

$8,284

$7,806

Efficiency Ratio

67.7%

72.2%

69.0%

68.3%

68.3%

NIE / Average Assets

3.7%

3.8%

3.7%

3.9%

3.7%

Net Noninterest Expense

-1.9

-1.9

-1.8

-1.6

-1.6

Balance Sheet

Total assets as of June 30, 2018, were $944.8 million, up $97.1 million, or 11.5 percent, from a year ago.  Total equity as of June 30, 2018, was $125.1 million, up 40.5 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 $753.3 million at June 30, 2018, up $101.7 million, or 15.6 percent, from June 30, 2017.  Commercial real estate loans were up $54.2 million, or 18.3 percent, with residential real estate rising $35.6 million, or 25.9 percent.

The investment portfolio of $93.7 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 9.9 percent of assets at June 30, 2018, and was down 12.6 percent from the year-ago period.  Deposit balances of $752.9 million at June 30, 2018, increased by $45.5 million, or 6.4 percent, since June 30, 2017.  Growth from the prior year included $9.0 million in checking and $36.5 million in savings and time deposit balances.

Mr. Klein stated, "The disciplined efforts of our business development team is evident in the level of loan growth this quarter and compared to the prior year.  Expanding our loan portfolio by nearly 16 percent in the last year is a tremendous accomplishment.  While SBA production slowed in the quarter, we have originated over $18 million in the last 12 months.  We continue to be encouraged by the strength of our loan pipelines.  Additionally, we continued to improve asset quality in the quarter, with net charge offs at just 1 basis point and nonperforming assets at 34 basis points."








Loan Balance







($ in thousands, except ratios)

Jun. 2018

Mar. 2018

Dec. 2017

Sep. 2017

Jun. 2017

Annual
Growth

Commercial

$115,140

$107,579

$102,041

$104,723

$107,319

$7,821

% of Total

15.3%

15.2%

14.6%

15.5%

16.5%

7.3%

Commercial RE

350,266

338,586

332,154

319,764

296,116

54,150

% of Total

46.5%

47.9%

47.7%

47.4%

45.4%

18.3%

Agriculture

52,466

50,266

51,947

51,140

52,107

359

% of Total

7.0%

7.1%

7.5%

7.6%

8.0%

0.7%

Residential RE

172,773

151,820

150,854

141,296

137,214

35,559

% of Total

22.9%

21.5%

21.7%

20.9%

21.1%

25.9%

Consumer & Other

62,640

58,956

59,619

58,152

58,833

3,807

% of Total

8.3%

8.3%

8.6%

8.6%

9.0%

6.5%

Total Loans

$753,285

$707,207

$696,615

$675,075

$651,589

$101,696

Total Growth Percentage






15.6%















Deposit Balance







($ in thousands, except ratios)

Jun. 2018

Mar. 2018

Dec. 2017

Sep. 2017

Jun. 2017

Annual
Growth

Non-Int DDA

$131,125

$132,919

$135,592

$124,840

$124,213

$6,912

% of Total

17.4%

17.8%

18.6%

17.4%

17.6%

5.6%

Interest DDA

129,486

137,893

131,079

130,513

127,409

2,077

% of Total

17.2%

18.4%

18.0%

18.2%

18.0%

1.6%

Savings

118,108

116,820

103,267

103,530

104,720

13,388

% of Total

15.7%

15.6%

14.2%

14.4%

14.8%

12.8%

Money Market

151,228

143,679

141,844

140,647

130,987

20,241

% of Total

20.1%

19.2%

19.4%

19.6%

18.5%

15.5%

Certificates

222,932

217,484

217,818

217,277

220,004

2,928

% of Total

29.6%

29.0%

29.9%

30.3%

31.1%

1.3%

Total Deposits

$752,879

$748,795

$729,600

$716,807

$707,333

$45,546

Total Growth Percentage






6.4%

Asset Quality

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting nonperforming assets of $3.2 million as of June 30, 2018, down $0.7 million, or 17.2 percent, from the year-ago quarter.  SB Financial's nonperforming assets to total assets ratio of 0.34 percent is in the top quartile of its 65-bank peer group.  The coverage of problem loans by the loan loss allowance was at 264 percent at June 30, 2018, up from 205 percent at June 30, 2017.








Summary of Nonperforming Assets






Annual
Growth

($ in thousands, except ratios)

Jun. 2018

Mar. 2018

Dec. 2017

Sep. 2017

Jun. 2017

Commercial & Agriculture

$33

$35

$121

$125

$132

($99)

% of Total Com./Ag. loans

0.02%

0.02%

0.08%

0.08%

0.08%

-75.0%

Commercial RE 

234

487

1,322

1,029

1,049

(815)

% of Total CRE loans

0.07%

0.14%

0.40%

0.32%

0.35%

-77.7%

Residential RE

1,634

1,714

1,123

1,074

1,115

519

% of Total Res. RE loans

0.95%

1.13%

0.74%

0.76%

0.81%

46.5%

Consumer & Other

221

85

138

153

154

67

% of Total Con./Oth. loans  

0.35%

0.14%

0.23%

0.26%

0.26%

43.5%

Total Nonaccruing Loans 

2,122

2,321

2,704

2,381

2,450

(328)

% of Total loans

0.28%

0.33%

0.39%

0.35%

0.38%

-13.4%

Accruing Restructured Loans

1,101

1,115

1,129

1,258

1,366

(265)

Total Growth (%)






-19.4%

Total Nonaccruing & Restructured Loans

$3,223

$3,436

$3,833

$3,639

$3,816

($593)

% of Total loans

0.43%

0.49%

0.55%

0.54%

0.59%

-15.5%

Foreclosed Assets

16

70

26

94

94

(78)

Total Growth (%)






-83.0%

Total Nonperforming Assets

$3,239

$3,506

$3,859

$3,733

$3,910

($671)

% of Total assets

0.34%

0.38%

0.44%

0.43%

0.46%

-17.2%

Webcast and Conference Call

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

About SB Financial Group                                                                          

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

In May 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

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

SB FINANCIAL GROUP, INC.  

CONSOLIDATED BALANCE SHEETS - (Unaudited)





















June


March


December


September


June





($ in thousands)


2018


2018


2017


2017


2017

















ASSETS













Cash and due from banks


$    24,413


48,329


26,616


28,258


21,385


















Securities available for sale, at fair value


89,911


91,987


82,790


85,304


103,347



Other securities - FRB and FHLB Stock


3,748


3,748


3,748


3,748


3,748



















Total investment securities


93,659


95,735


86,538


89,052


107,095


















Loans held for sale


7,551


8,893


3,940


7,663


9,437


















Loans, net of unearned income


753,285


707,207


696,615


675,075


651,589



Allowance for loan losses


(8,494)


(8,219)


(7,930)


(7,760)


(7,825)



















Net loans


744,791


698,988


688,685


667,315


643,764


















Premises, equipment and software, net


21,683


21,776


21,277


21,271


20,740



Cash surrender value of life insurance


16,656


16,567


16,479


13,692


13,859



Goodwill & other intangibles


16,406


16,409


16,411


16,414


16,417



Foreclosed assets held for sale, net


16


70


26


94


94



Mortgage servicing rights


10,633


10,196


9,907


9,560


9,217



Accrued interest receivable


2,000


1,925


1,825


1,880


1,411



Other assets


6,977


6,753


4,923


5,263


4,249




















Total assets


$  944,785


925,641


876,627


860,462


847,668















































LIABILITIES AND EQUITY













Deposits














Non interest bearing demand


$  131,125


132,919


135,592


124,840


124,213




Interest bearing demand


129,486


137,893


131,079


130,513


127,409




Savings deposits


118,108


116,820


103,267


103,530


104,720




Money market deposits


151,228


143,679


141,844


140,647


130,987




Time deposits


222,932


217,484


217,818


217,277


220,004




















Total deposits


752,879


748,795


729,600


716,807


707,333


















Repurchase agreements


18,191


14,505


15,082


11,343


11,175



Advances from Federal Home Loan Bank


26,500


18,500


18,500


20,500


20,500



Trust preferred securities


10,310


10,310


10,310


10,310


10,310



Accrued interest payable


685


633


592


611


563



Other liabilities


11,116


9,999


8,543


9,982


8,756




















Total liabilities


819,681


802,742


782,627


769,553


758,637


















Equity














Preferred shares


13,983


13,983


13,983


13,983


13,983




Common shares


40,481


40,481


12,569


12,569


12,569




Additional paid-in capital


15,098


15,189


15,405


15,335


15,260




Retained earnings


59,503


57,162


55,439


51,991


49,851




Accumulated other comprehensive income (loss)

(1,240)


(941)


(141)


335


340




Treasury shares


(2,721)


(2,975)


(3,255)


(3,304)


(2,972)




















Total equity


125,104


122,899


94,000


90,909


89,031




















Total liabilities and equity


$  944,785


925,641


876,627


860,462


847,668


 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)



















($ in thousands, except per share & ratios)


At and for the Three Months Ended



Six Months Ended























June


March


December


September


June



June


June

Interest income


2018


2018


2017


2017


2017



2018


2017


Loans

















  Taxable 


$ 8,968


8,140


8,096


7,653


7,243



17,108


14,043


  Nontaxable


36


21


23


21


21



57


41


Securities

















  Taxable 


612


573


514


532


569



1,186


1,030


  Nontaxable


115


117


129


132


133



232


266





















Total interest income


9,731


8,851


8,762


8,338


7,966



18,583


15,380



















Interest expense

















Deposits


1,091


975


938


907


863



2,066


1,611


Repurchase Agreements & Other


6


10


2


4


6



16


10


Federal Home Loan Bank advances


110


79


85


86


63



189


149


Trust preferred securities


100


87


83


78


71



188


141





















Total interest expense


1,307


1,151


1,108


1,075


1,003



2,459


1,911





































Net interest income


8,424


7,700


7,654


7,263


6,963



16,124


13,469




















Provision for loan losses 


300


300


200


-


200



600


200



















Net interest income after provision
















  for loan losses


8,124


7,400


7,454


7,263


6,763



15,524


13,269



















Noninterest income

















Wealth Management Fees


710


739


718


688


704



1,449


1,371


Customer service fees


675


644


690


674


667



1,319


1,307


Gain on sale of mtg. loans & OMSR's

2,058


1,100


1,608


2,211


2,063



3,158


3,313


Mortgage loan servicing fees, net


247


471


465


227


241



718


624


Gain on sale of non-mortgage loans


150


660


179


294


369



810


799


Data service fees


-


-


179


182


184



-


377


Net gain on sales of securities


-


-


-


119


-



-


-


Gain/(loss) on sale/disposal of assets

60


(39)


(4)


8


-



21


2


Other income


349


668


257


458


234



1,017


471





















Total non-interest income


4,249


4,243


4,092


4,861


4,462



8,492


8,264



















Noninterest expense

















Salaries and employee benefits


5,201


4,939


4,749


4,844


4,667



10,140


9,053


Net occupancy expense


561


649


582


566


552



1,209


1,112


Equipment expense


637


829


748


688


683



1,466


1,324


Data processing fees


418


438


363


429


396



856


766


Professional fees


504


419


492


502


417



923


780


Marketing expense


203


221


153


180


206



425


401


Telephone and communication


128


122


113


120


113



250


229


Postage and delivery expense


63


74


118


103


59



137


233


State, local and other taxes


176


186


164


198


170



362


337


Employee expense


220


166


227


242


183



386


328


Other expenses


468


584


397


412


360



1,052


625





















Total non-interest expense


8,579


8,627


8,106


8,284


7,806



17,206


15,188





































Income before income tax expense


3,794


3,016


3,440


3,840


3,419



6,810


6,345




















Income tax expense (benefit)


687


563


(592)


1,117


1,102



1,250


2,035



















Net income 


$ 3,107


2,453


4,032


2,723


2,317



5,560


4,310



















Preferred Share Dividends 


244


244


244


244


244



488


488



















Net income available to common shares


2,863


2,209


3,788


2,479


2,073



5,072


3,822



















Common share data:

















Basic earnings per common share


$   0.45


0.40


0.79


0.52


0.43



0.85


0.79




















Diluted earnings per common share


$   0.40


0.35


0.64


0.43


0.37



0.75


0.68



















Average shares outstanding ($ in thousands):

















Basic:


6,489


5,519


4,790


4,797


4,827



5,936


4,839


Diluted: 


8,003


7,055


6,329


6,326


6,351



7,454


6,366

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               

















($ in thousands, except per share & ratios)


At and for the Three Months Ended



Six Months Ended



















June


March


December


September


June



June


June

SUMMARY OF OPERATIONS


2018


2018


2017


2017


2017



2018


2017

















   Net interest income 


$       8,424


7,700


7,654


7,263


6,963



16,124


13,469

         Tax-equivalent adjustment


40


37


78


79


79



77


158

   Tax-equivalent net interest income 


8,464


7,737


7,732


7,342


7,042



16,201


13,627

   Provision for loan loss 


300


300


200


-


200



600


200

   Noninterest income


4,249


4,243


4,092


4,861


4,462



8,492


8,264

   Total operating revenue


12,673


11,943


11,746


12,124


11,425



24,616


21,733

   Noninterest expense


8,579


8,627


8,106


8,284


7,806



17,206


15,188

   Pre-tax pre-provision income


4,094


3,316


3,640


3,840


3,619



7,410


6,545

   Pretax income


3,794


3,016


3,440


3,840


3,419



6,810


6,345

   Net income 


3,107


2,453


4,032


2,723


2,317



5,560


4,310

   Income available to common shareholders 


2,863


2,209


3,788


2,479


2,073



5,072


3,822

















PER SHARE INFORMATION:
















   Basic earnings per share


$         0.45


0.40


0.79


0.52


0.43



0.85


0.79

   Diluted earnings per share


0.40


0.35


0.64


0.43


0.37



0.75


0.68

   Common dividends


0.080


0.075


0.075


0.070


0.070



0.155


0.135

   Book value per common share


15.73


15.49


15.05


14.57


14.22



15.73


14.22

   Tangible book value per common share


14.57


14.27


13.27


12.64


12.20



14.57


12.20

   Fully converted TBV per common share


13.66


13.42


12.42


11.94


11.60



13.66


11.60

   Market price per common share


20.32


18.51


18.49


17.16


16.88



20.32


16.88

   Market price per preferred share


19.82


18.20


17.90


16.45


16.89



19.82


16.89

   Market price to tangible book value


139.5%


129.7%


139.3%


135.8%


138.4%



139.5%


138.4%

   Market price to trailing 12 month EPS


11.2


10.3


10.6


11.6


11.7



11.2


11.7

















PERFORMANCE RATIOS:
















   Return on average assets (ROAA)


1.35%


1.08%


1.83%


1.27%


1.09%



1.21%


1.03%

   Pre-tax pre-provision ROAA


1.78%


1.46%


1.65%


1.79%


1.70%



1.61%


1.56%

   Return on average equity


10.02%


9.03%


17.52%


12.11%


10.45%



9.64%


9.80%

   Return on average tangible equity


13.28%


12.54%


26.16%


18.28%


15.91%



13.08%


14.97%

   Efficiency ratio 


67.67%


72.22%


68.99%


68.30%


68.30%



69.88%


69.86%

   Earning asset yield


4.76%


4.41%


4.52%


4.36%


4.26%



4.46%


4.18%

   Cost of interest bearing liabilities


0.80%


0.71%


0.69%


0.68%


0.64%



0.75%


0.62%

   Net interest margin


4.12%


3.84%


3.92%


3.77%


3.69%



3.87%


3.62%

   Tax equivalent effect


0.02%


0.02%


0.04%


0.04%


0.04%



0.02%


0.04%

   Net interest margin, tax equivalent 


4.14%


3.86%


3.96%


3.81%


3.73%



3.89%


3.66%

   Non interest income/Average assets


1.84%


1.87%


1.86%


2.27%


2.09%



1.85%


1.97%

   Non interest expense/Average assets


3.72%


3.81%


3.68%


3.87%


3.66%



3.74%


3.62%

   Net noninterest expense/Average assets


1.88%


1.93%


1.82%


1.60%


1.57%



1.89%


1.65%

















ASSET QUALITY RATIOS:
















   Gross charge-offs


$            54


19


36


75


69



73


120

   Recoveries


29


9


5


10


15



38


20

   Net charge-offs


25


10


31


65


54



35


100

   Nonaccruing loans/ Total loans


0.28%


0.33%


0.39%


0.35%


0.38%



0.28%


0.38%

   Nonperforming loans/ Total loans


0.43%


0.49%


0.55%


0.54%


0.59%



0.43%


0.59%

   Nonperforming assets/ Loans & OREO


0.43%


0.50%


0.55%


0.55%


0.60%



0.43%


0.60%

   Nonperforming assets/ Total assets


0.34%


0.38%


0.44%


0.43%


0.46%



0.34%


0.46%

   Allowance for loan loss/ Nonperforming loans


263.54%


239.20%


206.89%


213.25%


205.06%



263.54%


205.06%

   Allowance for loan loss/ Total loans


1.13%


1.16%


1.14%


1.15%


1.20%



1.13%


1.20%

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


0.01%


0.01%


0.02%


0.04%


0.03%



0.01%


0.03%

   Loan loss provision/ Net charge-offs


1200.00%


3000.00%


645.16%


0.00%


370.37%



1714.29%


200.00%

















CAPITAL & LIQUIDITY RATIOS:
















   Loans/ Deposits


100.05%


94.45%


95.48%


94.18%


92.12%



100.05%


92.12%

   Equity/ Assets


13.24%


13.28%


10.72%


10.57%


10.50%



13.24%


10.50%

   Tangible equity/ Tangible assets


10.20%


10.17%


7.39%


7.17%


7.05%



10.20%


7.05%

   Tangible equity adjusted for conversion


11.71%


11.71%


9.02%


8.83%


8.74%



11.71%


8.74%

   Common equity tier 1 ratio (Bank) - 6/18 est.


12.50%


12.23%


10.53%


10.39%


10.34%



12.50%


10.34%

















END OF PERIOD BALANCES
















   Total assets


$  944,785


925,641


876,627


860,462


847,668



944,785


847,668

   Total loans 


753,285


707,207


696,615


675,075


651,589



753,285


651,589

   Deposits


752,879


748,795


729,600


716,807


707,333



752,879


707,333

   Stockholders equity


125,104


122,899


94,000


90,909


89,031



125,104


89,031

   Goodwill & intangibles


16,406


16,409


16,411


16,414


16,417



16,406


16,417

   Preferred equity


13,983


13,983


13,983


13,983


13,983



13,983


13,983

   Tangible equity


94,715


92,507


63,606


60,512


58,631



94,715


58,631

   Mortgage servicing portfolio


1,030,780


1,004,728


994,915


979,251


952,364



1,030,780


952,364

   Wealth/Brokerage assets under care


407,592


411,654


437,034


429,777


407,268



407,592


407,268

   Total assets under care


2,383,157


2,342,023


2,308,576


2,269,490


2,207,300



2,383,157


2,207,300

   Full-time equivalent employees (actual)


241


240


240


237


237



241


237

   Period end basic shares outstanding


6,502


6,483


4,793


4,788


4,807



6,502


4,807

   Period end outstanding (Series A Converted)


1,453


1,453


1,453


1,452


1,452



1,453


1,452

















AVERAGE BALANCES
















   Total assets


$  922,355


906,281


880,446


857,147


852,526



920,024


840,044

   Total earning assets 


817,270


802,358


781,795


771,722


754,736



832,849


743,703

   Total loans 


724,710


711,733


691,929


667,943


644,658



737,544


641,094

   Deposits


739,877


738,867


731,992


712,614


717,472



745,231


700,598

   Stockholders equity


123,990


108,662


92,036


89,974


88,637



115,387


87,985

   Intangibles


16,407


16,410


16,412


16,415


16,418



16,409


16,419

   Preferred equity


13,983


13,983


13,983


13,983


13,983



13,983


13,983

   Tangible equity


93,600


78,269


61,641


59,576


58,236



84,995


57,583

   Average basic shares outstanding


6,489


5,519


4,790


4,797


4,827



5,936


4,839

   Average diluted shares outstanding


8,003


7,055


6,329


6,326


6,351



7,454


6,366

 

SB FINANCIAL GROUP, INC.


Rate Volume Analysis - (Unaudited)


At and for the Three Months Ended June 30, 2018 and 2017









($ in thousands)


Three Months Ended Jun. 30, 2018



Three Months Ended Jun. 30, 2017




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities


$  80,610

612

3.04%



$  95,748

569

2.38%


Nontaxable securities


11,950

115

3.85%



14,330

133

3.69%


Loans, net


724,710

9,004

4.97%



644,658

7,264

4.51%













       Total earning assets


817,270

9,731

4.76%



754,736

7,966

4.22%













Cash and due from banks


32,930





38,905




Allowance for loan losses


(8,178)





(7,756)




Premises and equipment


21,476





21,062




Other assets


58,857





45,579















      Total assets


$ 922,355





$ 852,526














Liabilities











Savings and interest bearing demand


$ 393,507

303

0.31%



$ 371,352

194

0.21%


Time deposits


214,928

788

1.47%



219,716

669

1.22%


Repurchase agreements & Other


15,646

6

0.15%



9,728

6

0.25%


Advances from Federal Home Loan Bank


20,655

110

2.13%



15,995

63

1.58%


Trust preferred securities


10,310

100

3.88%



10,310

71

2.75%













      Total interest bearing liabilities


655,046

1,307

0.80%



627,101

1,003

0.64%













Non interest bearing demand


131,442

-




126,404

-














      Total funding


786,488


0.66%



753,505


0.53%













Other liabilities


11,877





10,384















      Total liabilities


798,365





763,889















Equity


123,990


559,131



88,637















      Total liabilities and equity


$ 922,355





$ 852,526















Net interest income



$              8,424





$              6,963














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

4.12%





3.69%













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

4.14%





3.73%


 - Computed on a fully tax equivalent (FTE) basis























Six Months Ended Jun. 30, 2018



Six Months Ended Jun. 30, 2017




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities


$  83,225

1,186

2.85%



$  88,363

1,030

2.33%


Nontaxable securities


12,080

232

3.84%



14,246

266

3.73%


Loans, net


737,544

17,165

4.65%



641,094

14,084

4.39%













       Total earning assets


832,849

18,583

4.46%



743,703

15,380

4.14%













Cash and due from banks


27,773





38,285




Allowance for loan losses


(8,311)





(7,778)




Premises and equipment


21,855





20,829




Other assets


45,858





45,005















      Total assets


$ 920,024





$ 840,044














Liabilities











Savings and interest bearing demand


$ 393,384

559

0.28%



$ 364,982

366

0.20%


Time deposits


215,208

1,507

1.40%



211,460

1,245

1.18%


Repurchase agreements & Other


13,196

16

0.24%



11,753

10

0.17%


Advances from Federal Home Loan Bank


22,786

189

1.66%



19,464

149

1.53%


Trust preferred securities


10,310

188

3.65%



10,310

141

2.74%













      Total interest bearing liabilities


654,884

2,459

0.75%



617,969

1,911

0.62%













Non interest bearing demand


136,639


0.62%



124,156


0.52%













      Total funding


791,523





742,125















Other liabilities


13,114





9,934















      Total liabilities


804,637





752,059















Equity


115,387





87,985















      Total liabilities and equity


$ 920,024





$ 840,044















Net interest income



$            16,124





$            13,469














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

3.87%





3.62%













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

3.89%





3.66%


 - Computed on a fully tax equivalent (FTE) basis







 

Cision View original content:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-second-quarter-and-six-month-2018-earnings-300684018.html

SOURCE SB Financial Group, Inc.

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