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SB Financial Group, Inc. Announces Fourth-Quarter and Full-Year 2016 Results

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Year-over-year earnings per share growth of 28% and loan growth of over 15%

January 19, 2017 4:16 PM EST

DEFIANCE, Ohio, Jan. 19, 2017 /PRNewswire/ -- 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, item and statement processing services, today reported earnings for the fourth-quarter and twelve-months ended December 31, 2016.

Fourth-quarter 2016 highlights over prior-year fourth quarter include:

  • Net income of $2.3 million, an increase of 24.0 percent, or $0.4 million
  • Return on average assets of 1.14 percent, up 11.8 percent, or 12 basis points
  • Diluted earnings per share (EPS) of $0.37, an increase of 27.6 percent, or $0.08 per share
  • Loan growth of $25.1 million, or 16.2 percent annualized
  • Deposit growth of $10.9 million, or 6.6 percent annualized
  • Fully Taxable Equivalent (FTE) net interest margin of 3.69 percent, down 7 basis points
  • Mortgage origination volume of $83.5 million, an increase of 24.3 percent, or $16.3 million; servicing portfolio of $899.7 million, up 16.5 percent, or $127.2 million

Full-year highlights over prior-year twelve months include:

  • Net income of $8.8 million, an increase of 15.3 percent, or $1.2 million
  • Return on average assets of 1.11 percent, up 4.7 percent, or 5 basis points
  • Diluted earnings per share of $1.38, an increase of 16.0 percent, or $0.19 per share
  • Loan growth of $86.8 million, or 15.6 percent
  • Deposit growth of $86.6 million, or 14.8 percent
  • Nonperforming assets to total assets ended the year at 65 basis points

 

Highlights

Three Months Ended

  Twelve Months Ended

($000's except ratios and share data)

Dec. 2016

Dec. 2015

 

% Change

 

Dec. 2016

 

   Dec. 2015

 

% Change

Operating revenue

$ 11,775

$ 9,692

21.5%

$ 43,742

$ 39,050

12.0%

Interest income

7,512

6,622

13.4

29,051

25,927

12.0

Interest expense

865

646

33.9

3,198

2,584

23.8

Net interest income

6,647

5,976

11.2

25,853

23,343

10.8

Noninterest income

5,128

3,716

38.0

17,889

15,707

13.9

Noninterest expense

7,859

6,839

14.9

30,091

26,927

11.8

Net income

2,317

1,868

24.0

8,784

7,619

15.3

Earnings per diluted share

0.37

0.29

27.6

1.38

1.19

16.0

Net interest margin (FTE)

3.69%

3.76%

(1.9)

3.75%

3.78%

(0.8)

Return on average assets

1.14%

1.02%

11.8

1.11%

1.06%

4.7

Return on average equity

10.73%

9.23%

16.3

10.39%

9.69%

7.2

 

"SB Financial Group's fourth-quarter results were strong, providing the best year-over-year earnings performance for our Company since 2003," said Mark Klein, Chairman, President, and CEO of SB Financial.  "Diluted EPS for the quarter was $0.37, up $0.08 or 28 percent, and the full year came in at $1.38, up $0.19 or 16 percent.  In addition, our balance sheet grew this quarter with $25 million of loan growth and we originated $83.5 million of residential mortgage volume, all while maintaining a very healthy ratio of nonperforming assets at 65 basis points."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 21.5 percent from the fourth quarter of 2015, and up 0.8 percent from the linked quarter.

  • Net interest income was up 11.2 percent from the year-ago quarter, and flat to the linked quarter.
  • Net interest margin (FTE) was down 7 basis points from the year-ago quarter, and down 13 basis points from the linked quarter.
  • Noninterest income was up 38.0 percent from the year-ago quarter, and up 2.3 percent from the linked quarter.
  • Total operating revenue for the full year of 2016 was $43.7 million, compared to $39.1 million for the full year of 2015, which is a 12.0 percent increase.

Mortgage Loan Business

Mortgage loan originations for the fourth quarter of 2016 were $83.5 million, up $16.3 million, or 24.3 percent, from the year-ago quarter.  Total sales of originated loans were $81.7 million, up $25.4 million, or 45.1 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 $3.3 million for the fourth quarter of 2016, compared to $1.8 million for the year-ago quarter, or an 89.5 percent increase.  The mortgage servicing valuation adjustment for the fourth quarter 2016 was a positive $1.2 million, compared to a negative adjustment for the fourth quarter of 2015 of $0.1 million.  The aggregate servicing valuation impairment ended the quarter at $0.2 million.  The mortgage servicing portfolio at December 31, 2016, was $899.7 million, up $127.2 million, or 16.5 percent, from $772.5 million at December 31, 2015.

Mr. Klein noted, "Our highest origination year on record with volume of $383 million culminated with a fourth quarter performance that was higher than the prior year by 24 percent.  Our $9.0 million in mortgage banking revenue for the year was all core earnings, and was higher by 23 percent than in 2015."

 

Mortgage Banking ($000's)

Dec. 2016

Sep. 2016

Jun. 2016

Mar. 2016

Dec. 2015

Mortgage originations

$  83,469

$  117,209

$  110,210

$  71,941

$  67,149

Mortgage sales

81,689

101,147

95,150

59,383

56,302

Mortgage servicing portfolio

899,710

868,783

831,781

792,666

772,533

Mortgage servicing rights

8,422

6,887

6,494

6,608

7,152

Mortgage servicing revenue:

Loan servicing fees

553

531

505

491

476

OMSR amortization

(462)

(397)

(309)

(170)

(157)

Net administrative fees

91

134

196

321

319

OMSR valuation adjustment

1,233

71

(469)

(767)

64

Net loan servicing fees

1,324

205

(273)

(446)

383

Gain on sale of mortgages

2,002

2,503

2,284

1,383

1,372

Mortgage banking revenue, net

$3,326

$2,708

$2,011

$937

$1,755

 

Noninterest Income and Noninterest Expense

SB Financial's fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and from sales of small business loans (SBA).  Wealth management assets under our care stood at $378.1 million as of December 31, 2016.  For the fourth quarter of 2016, fee income as a percentage of total revenue was 43.6 percent.  The recapture of servicing rights positively impacted the quarter by $1.2 million. 

For the fourth quarter of 2016, noninterest expense (NIE) of $7.9 million, was up $1.0 million, or 14.9 percent, compared to the same quarter last year.  New branch locations and increased support in the Company's compliance and mortgage divisions raised staffing levels by 6.1 percent.  We also had higher commission expenses related to our mortgage loan volume.  Compared to the linked quarter, NIE was down $0.1 million, or 0.9 percent.

Mr. Klein stated, "The servicing rights impairment recapture of $1.2 million was an important factor in quarterly results, however the net effect of that item over all of 2016 was minimal.  We continue to have solid fee income contributions from all of our business lines.  Our pipeline in SBA is very strong and we expect to expand loan sale gains in the coming quarters." 

 

Noninterest Income / Noninterest Expense

($000's)

Dec. 2016

Sep. 2016

Jun. 2016

Mar. 2016

Dec. 2015

Noninterest Income (NII)

$ 5,128

$ 5,015

$ 4,307

$ 3,439

$ 3,716

NII / Total Revenue

43.6%

42.9%

40.1%

36.0%

38.3%

NII / Average Assets

2.5%

2.5%

2.2%

1.8%

2.0%

Noninterest Expense (NIE)

$ 7,859

$ 7,930

$ 7,407

$ 6,895

$ 6,839

Efficiency Ratio

66.7%

67.8%

69.0%

72.2%

70.2%

NIE / Average Assets

3.9%

4.0%

3.8%

3.6%

3.7%

Net Noninterest Expense

(1.3)

(1.5)

(1.6)

(1.8)

(1.7)

 

Balance Sheet

Total assets as of December 31, 2016, were $816.0 million, up $82.9 million, or 11.3 percent, from a year ago.  Total equity as of December 31, 2016, was $86.5 million, up 6.5 percent, from a year ago, and was at 10.6 percent of total assets. 

Total loans held for investment were $644.4 million at December 31, 2016, up $86.8 million, or 15.6 percent, from December 31, 2015.  Commercial real estate loans were up $41.9 million, or 17.3 percent, and accounted for the majority of the total loan growth., Commercial (C & I) and Residential real estate loans also rose $22.5 million and $11.6 million, or 26.0 percent and 8.9 percent, respectively.

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $93.9 million represented 11.5 percent of assets at December 31, 2016, and was flat to the year-ago period.  Deposit balances of $673.1 million at December 31, 2016, increased by $86.6 million, or 14.8 percent, since December 31, 2015.  Growth from the prior year included $17.2 million in checking and $69.4 million in savings and time deposit balances.

Mr. Klein said, "The $25 million of loan growth for the quarter brought our total for 2016 to $87 million, which is a 15 percent growth rate.  Our asset quality remains top-tier with our allowance coverage of non-performing loans increasing to a strong 179 percent." 

 

Loan Portfolio ($000's)

Dec. 2016

Sep. 2016

Jun. 2016

Mar. 2016

Dec. 2015

Variance YOY

Commercial

$ 109,087

$ 101,245

$ 100,651

$  92,086

$  86,586

$ 22,501

% of Total

16.9%

16.4%

16.6%

16.0%

15.5%

26.0%

Commercial RE

284,084

268,408

261,923

256,461

242,208

41,876

% of Total

44.1%

43.3%

43.3%

44.4%

43.4%

17.3%

Agriculture

52,475

54,609

52,375

42,467

43,835

8,640

% of Total

8.2%

8.8%

8.7%

7.4%

7.9%

19.7%

Residential RE

142,452

139,757

135,506

132,627

130,806

11,646

% of Total

22.1%

22.6%

22.4%

23.0%

23.5%

8.9%

Consumer & Other

56,335

55,333

54,321

53,493

54,224

2,111

% of Total

8.7%

8.9%

9.0%

9.3%

9.7%

3.9%

Total Loans

$644,433

$619,352

$604,776

$577,134

$557,659

$ 86,774

Total Growth Percentage

15.6%

 

 

 

Deposit Bal. ($000's)

Dec. 2016

Sep. 2016

Jun. 2016

Mar. 2016

Dec. 2015

Variance YOY

Non-Int DDA

$ 125,189

$ 116,976

$ 110,899

$ 112,209

$ 113,113

$ 12,076

% of Total

18.6%

17.7%

17.1%

17.6%

19.3%

10.7%

Interest DDA

131,598

135,729

129,658

138,235

126,443

5,155

% of Total

19.5%

20.5%

20.0%

21.7%

21.6%

4.1%

Savings

95,594

89,265

84,975

86,038

83,447

12,147

% of Total

14.2%

13.5%

13.1%

13.5%

14.2%

14.6%

Money Market

122,976

126,501

134,365

120,672

104,412

18,564

% of Total

18.3%

19.1%

20.7%

18.9%

17.8%

17.8%

Certificates

197,716

193,673

188,403

180,874

159,038

38,678

% of Total

29.4%

29.3%

29.1%

28.4%

27.1%

24.3%

Total Deposits

$673,073

$662,144

$648,300

$638,028

$586,453

$ 86,620

Total Growth Percentage

14.8%

Asset Quality

SB Financial returned to high-performing peer asset quality levels during the quarter, reporting non-performing assets of $5.3 million as of December 31, 2016, down $3.1 million, or 36.9 percent, from the year-ago quarter.  The decrease from the prior year resulted from the full principal payoff of an existing delinquent commercial real estate credit that moved through foreclosure with full principal payoff.  SB Financial's nonperforming assets to total assets of 0.65 percent is in the top quartile of its 65-bank peer group.  The coverage of problem loans by the loan loss allowance was at 178.5 percent at December 31, 2016, up from the 85.8 percent at December 31, 2015.

Summary of Nonperforming Assets ($000's)

Nonperforming Category

Dec. 2016

Sep. 2016

Jun. 2016

Mar. 2016

Dec. 2015

Variance YOY

Commercial & Agriculture

$ 194

$ 151

$ 158

$ 164

$ 196

$(2)

% of Total Com./Ag. loans

0.12%

0.10%

0.12%

0.12%

0.15%

(1.0%)

Commercial RE

1,194

1,393

5,309

5,218

5,670

(4,476)

% of Total CRE loans

0.42%

0.52%

2.02%

2.03%

2.34%

(78.9%)

Residential RE

1,162

1,152

1,088

1,156

749

413

% of Total Res. RE loans

0.82%

0.82%

0.80%

0.87%

0.57%

55.1%

Consumer & Other

187

193

138

46

32

155

% of Total Con./Oth. loans 

0.33%

0.35%

0.25%

0.09%

0.06%

N/M

Total Nonaccruing Loans

2,737

2,889

6,693

6,584

6,646

(3,909)

% of Total loans

0.43%

0.47%

1.11%

1.14%

1.19%

(58.8%)

Accruing Restructured Loans

1,590

1,588

1,381

1,482

1,500

 

Total Nonaccruing & Restructured Loans

$ 4,327

$ 4,477

$ 8,074

$ 8,066

$ 8,146

$ (3,819)

% of Total loans

0.67%

0.72%

1.34%

1.40%

1.46%

(46.9%)

Foreclosed Assets

994

73

157

406

286

Total Nonperforming Assets

$ 5,321

$ 4,550

$ 8,231

$ 8,472

$ 8,432

$ (3,111)

% of Total assets

0.65%

0.57%

1.04%

1.09%

1.15%

(36.9%)

 

Webcast and Conference Call

The Company will hold a related conference call and webcast on January 20, 2017, at 11:00 a.m. EST.  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 with two operating subsidiaries: State Bank and Diverse Computer Marketeres (DCM). 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 19 banking centers; 18 in nine Ohio counties and one center in Fort Wayne, Indiana, and 22 full-service ATMs.  The Company has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan.  DCM provides item processing and statement production services to community banks located primarily in the Midwest.  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 2016, SB Financial was ranked #160 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)

December

September

June

March

December

($ in Thousands)

2016

2016

2016

2016

2015

ASSETS

Cash and due from banks

$

17,012

25,167

29,945

35,529

20,459

Securities available for sale, at fair value

90,129

92,689

92,472

97,990

89,789

Other securities - FRB and FHLB Stock

3,748

3,748

3,748

3,748

3,748

Total investment securities

93,877

96,437

96,220

101,738

93,537

Loans held for sale

4,434

5,865

8,441

6,890

7,516

Loans, net of unearned income

644,433

619,352

604,776

577,134

557,659

Allowance for loan losses

(7,725)

(7,320)

(7,450)

(7,205)

(6,990)

Net loans

636,708

612,032

597,326

569,929

550,669

Premises, equipment and software, net

19,129

18,673

18,806

18,994

19,010

Cash surrender value of life insurance

13,725

13,653

13,581

13,509

13,437

Goodwill & other intangibles

16,422

16,426

16,429

16,432

16,435

Foreclosed assets held for sale, net

994

73

157

406

286

Mortgage servicing rights

8,422

6,887

6,494

6,608

7,152

Accrued interest receivable

1,512

1,641

1,397

1,489

1,260

Other assets

3,770

4,946

4,367

3,296

3,310

Total assets

$

816,005

801,800

793,163

774,820

733,071

LIABILITIES AND EQUITY

Deposits

Non interest bearing demand

$

125,189

116,976

110,899

112,209

113,113

Interest bearing demand

131,598

135,729

129,658

138,235

126,443

Savings

95,594

89,265

84,975

86,038

83,447

Money market

122,976

126,501

134,365

120,672

104,412

Time deposits

197,716

193,673

188,403

180,874

159,038

Total deposits

673,073

662,144

648,300

638,028

586,453

Advances from Federal Home Loan Bank

26,500

23,000

23,000

21,000

35,000

Repurchase agreements

10,532

11,363

17,797

14,524

12,406

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Accrued interest payable

408

427

384

343

264

Other liabilities

8,634

8,293

8,422

7,564

7,397

Total liabilities

729,457

715,537

708,213

691,769

651,830

Equity

Preferred stock

13,983

13,983

13,983

13,983

13,983

Common stock

12,569

12,569

12,569

12,569

12,569

Additional paid-in capital

15,362

15,370

15,367

15,365

15,438

Retained earnings

46,688

44,933

42,925

41,199

40,059

Accumulated other comprehensive income

51

1,237

1,552

1,296

650

Treasury stock

(2,105)

(1,829)

(1,446)

(1,361)

(1,458)

Total equity

86,548

86,263

84,950

83,051

81,241

Total liabilities and equity

$

816,005

801,800

793,163

774,820

733,071

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands - except share data)

At and for the Three Months Ended

Twelve Months Ended

December

September

June

March

December

December

December

Interest income

2016

2016

2016

2016

2015

2016

2015

Loans

  Taxable

$

7,059

6,954

6,648

6,260

6,086

26,921

23,692

  Nontaxable

20

22

24

9

10

75

35

Securities

  Taxable

289

378

392

402

357

1,461

1,506

  Nontaxable

144

145

149

156

169

594

694

Total interest income

7,512

7,499

7,213

6,827

6,622

29,051

25,927

Interest expense

Deposits

709

677

647

545

492

2,578

1,979

Repurchase Agreements & Other

2

5

4

5

3

16

17

Federal Home Loan Bank advances

86

83

77

106

95

352

375

Trust preferred securities

68

63

62

59

56

252

213

Total interest expense

865

828

790

715

646

3,198

2,584

Net interest income

6,647

6,671

6,423

6,112

5,976

25,853

23,343

Provision for loan losses

500

-

-

250

150

750

1,100

Net interest income after provision

  for loan losses

6,147

6,671

6,423

5,862

5,826

25,103

22,243

Noninterest income

Wealth Management Fees

657

695

643

633

645

2,628

2,606

Customer service fees

653

692

680

680

711

2,705

2,779

Gain on sale of mtg. loans & OMSR's

2,002

2,503

2,284

1,383

1,372

8,172

6,264

Mortgage loan servicing fees, net

1,324

205

(273)

(446)

383

810

1,025

Gain on sale of non-mortgage loans

52

327

151

449

75

979

947

Data service fees

184

223

233

277

273

917

1,190

Net gain on sales of securities

-

59

92

111

-

262

-

Gain/(loss) on sale/disposal of assets

-

(31)

186

22

38

177

18

Other income

256

342

311

330

219

1,239

878

Total non-interest income

5,128

5,015

4,307

3,439

3,716

17,889

15,707

Noninterest expense

Salaries and employee benefits

4,656

4,672

4,314

3,779

3,855

17,421

14,917

Net occupancy expense

533

523

524

565

479

2,145

1,943

Equipment expense

735

649

639

595

566

2,618

2,223

Data processing fees

384

352

339

305

264

1,380

1,060

Professional fees

404

380

326

316

381

1,426

1,663

Marketing expense

154

123

199

171

157

647

594

Telephone and communication

111

101

102

99

103

413

387

Postage and delivery expense

148

154

162

197

168

661

801

State, local and other taxes

154

170

171

99

130

594

517

Employee expense

182

117

128

118

126

545

543

Intangible amortization expense

3

3

3

3

37

12

200

Other expenses

395

686

500

648

573

2,229

2,079

Total non-interest expense

7,859

7,930

7,407

6,895

6,839

30,091

26,927

Income before income tax expense

3,416

3,756

3,323

2,406

2,703

12,900

11,023

Income tax expense

1,098

1,209

1,058

751

835

4,116

3,404

Net income

$

2,317

2,547

2,265

1,655

1,868

8,784

7,619

Preferred Stock Dividends

244

244

244

244

244

975

956

Net income available to common shares

2,073

2,303

2,021

1,411

1,624

7,809

6,663

Common share data:

Basic earnings per common share

$

0.43

0.47

0.41

0.29

0.33

1.60

1.36

Diluted earnings per common share

$

0.37

0.40

0.35

0.26

0.29

1.38

1.19

Average shares outstanding ($ in thousands):

Basic:

4,846

4,874

4,893

4,896

4,890

4,877

4,884

Diluted:

6,359

6,376

6,390

6,401

6,396

6,376

6,423

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                              

($ in thousands, except per share data)

At and for the Three Months Ended

Twelve Months Ended

December

September

June

March

December

December

December

SUMMARY OF OPERATIONS

2016

2016

2016

2016

2015

2016

2015

   Net interest income

$

6,647

6,671

6,423

6,112

5,976

25,853

23,343

         Tax-equivalent adjustment

$

84

86

89

85

92

345

376

   Tax-equivalent net interest income

$

6,731

6,757

6,512

6,197

6,068

26,198

23,719

   Provision for loan loss

$

500

-

-

250

150

750

1,100

   Noninterest income

$

5,128

5,015

4,307

3,439

3,716

17,889

15,707

   Total operating revenue

$

11,775

11,686

10,730

9,551

9,692

43,742

39,050

   Noninterest expense

$

7,859

7,930

7,407

6,895

6,839

30,091

26,927

   Pre-tax pre-provision income

$

3,916

3,756

3,323

2,656

2,853

13,651

12,123

   Pretax income

$

3,416

3,756

3,323

2,406

2,703

12,901

11,023

   Net income

$

2,317

2,547

2,265

1,655

1,868

8,783

7,619

   Income available to common shareholders

$

2,073

2,303

2,021

1,411

1,624

7,808

6,663

PER SHARE INFORMATION:

   Basic earnings per share

$

0.43

0.47

0.41

0.29

0.33

1.60

1.36

   Diluted earnings per share

$

0.37

0.40

0.35

0.26

0.29

1.38

1.19

   Common dividends

$

0.065

0.060

0.060

0.055

0.055

0.240

0.200

   Book value per common share

$

13.75

13.67

13.39

13.07

12.81

13.75

12.81

   Tangible book value per common share

$

11.59

11.49

11.15

10.74

10.39

11.59

10.39

   Market price per common share

$

16.05

12.53

10.87

10.31

11.14

16.05

11.14

   Market price per preferred share

$

15.85

13.50

11.83

11.19

12.65

15.85

12.65

PERFORMANCE RATIOS:

   Return on average assets (ROAA)

1.14%

1.28%

1.15%

0.87%

1.02%

1.11%

1.06%

   Pre-tax pre-provision ROAA

1.92%

1.89%

1.69%

1.40%

1.56%

1.73%

1.68%

   Return on average equity

10.72%

11.90%

10.80%

8.03%

9.23%

10.39%

9.69%

   Return on average tangible equity

16.54%

18.45%

16.94%

12.74%

14.80%

16.23%

15.84%

   Efficiency ratio

66.72%

67.83%

69.00%

72.16%

70.18%

68.76%

68.44%

   Earning asset yield

4.17%

4.29%

4.20%

4.18%

4.17%

4.21%

4.19%

   Cost of interest bearing liabilities

0.58%

0.56%

0.55%

0.51%

0.49%

0.55%

0.49%

   Net interest margin

3.64%

3.77%

3.69%

3.69%

3.71%

3.70%

3.72%

   Tax equivalent effect

0.05%

0.05%

0.06%

0.06%

0.05%

0.05%

0.06%

   Net interest margin, tax equivalent

3.69%

3.82%

3.75%

3.75%

3.76%

3.75%

3.78%

   Non interest income/Average assets

2.52%

2.52%

2.20%

1.81%

2.03%

2.27%

2.18%

   Non interest expense/Average assets

3.86%

3.98%

3.78%

3.62%

3.74%

3.81%

3.72%

   Net noninterest expense/Average assets

1.34%

1.46%

1.58%

1.82%

1.71%

1.55%

1.54%

ASSET QUALITY RATIOS:

   Gross charge-offs

$

269

136

2

94

241

501

952

   Recoveries

$

175

6

247

59

5

486

71

   Net charge-offs

$

95

130

(245)

35

236

15

881

   Nonaccruing loans/ Total loans

0.42%

0.47%

1.11%

1.14%

1.19%

0.42%

1.19%

   Nonperforming loans/ Total loans

0.67%

0.72%

1.34%

1.40%

1.46%

0.67%

1.46%

   Nonperforming assets/ Loans & OREO

0.82%

0.73%

1.36%

1.47%

1.51%

0.82%

1.51%

   Nonperforming assets/ Total assets

0.65%

0.57%

1.04%

1.09%

1.15%

0.65%

1.15%

   Allowance for loan loss/ Nonperforming loans

178.53%

163.50%

92.27%

89.33%

85.81%

178.53%

85.81%

   Allowance for loan loss/ Total loans

1.20%

1.18%

1.23%

1.25%

1.25%

1.20%

1.25%

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

0.06%

0.08%

(0.16%)

0.02%

0.17%

0.00%

0.17%

   Loan loss provision/ Net charge-offs

526.32%

0.00%

0.00%

714.29%

63.56%

5000.00%

124.86%

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

95.74%

93.54%

93.29%

90.46%

95.09%

95.74%

95.09%

   Equity/ Assets

10.61%

10.76%

10.71%

10.72%

11.08%

10.61%

11.08%

   Tangible equity/ Tangible assets

7.02%

7.11%

7.02%

6.94%

7.09%

7.02%

7.09%

   Tangible equity adjusted for conversion

8.77%

8.89%

8.82%

8.78%

9.04%

8.77%

9.04%

END OF PERIOD BALANCES

   Total assets

$

816,005

801,800

793,163

774,820

733,071

816,005

733,071

   Total loans

$

644,433

619,352

604,776

577,134

557,659

644,433

557,659

   Deposits

$

673,073

662,144

648,300

638,028

586,453

673,073

586,453

   Stockholders equity

$

86,548

86,263

84,950

83,051

81,241

86,548

81,241

   Goodwill & intangibles

$

16,422

16,426

16,429

16,432

16,435

16,422

16,435

   Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

   Tangible equity

$

56,143

55,854

54,538

52,636

50,823

56,143

50,823

   Mortgage servicing portfolio

$

899,710

868,783

831,781

792,666

772,533

899,710

772,533

   Wealth/Brokerage assets under care

$

378,131

375,787

367,223

357,531

353,488

378,131

353,488

   Total assets under care

$

2,093,846

2,046,370

1,992,167

1,925,017

1,859,092

2,093,846

1,859,092

   Full-time equivalent employees

227

224

223

218

214

227

214

   Period end basic shares outstanding

4,844

4,860

4,892

4,900

4,891

4,844

4,891

   Period end outstanding (Series A Converted)

1,452

1,452

1,452

1,452

1,451

1,452

1,451

AVERAGE BALANCES

   Total assets

$

814,423

796,027

784,353

761,143

731,198

789,045

719,586

   Total earning assets

$

729,525

707,679

694,629

661,891

644,783

698,541

628,047

   Total loans

$

634,664

614,731

596,724

568,925

549,877

603,875

531,614

   Deposits

$

672,226

650,751

644,429

616,124

585,922

645,847

575,840

   Stockholders equity

$

86,433

85,616

83,894

82,378

80,911

84,540

78,618

   Intangibles

$

16,424

16,427

16,431

16,434

16,450

16,429

16,529

   Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

   Tangible equity

$

56,026

55,206

53,480

51,961

50,478

54,128

48,106

   Average basic shares outstanding

4,846

4,874

4,893

4,896

4,890

4,877

4,884

   Average diluted shares outstanding

6,359

6,376

6,390

6,401

6,396

6,376

6,423

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Twelve Months Ended December 31, 2016 and 2015

($ in Thousands)

Three Months Ended Dec. 31, 2016

Three Months Ended Dec. 31, 2015

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

80,000

289

1.45%

$

77,944

357

1.83%

Nontaxable securities

14,861

218

5.87%

16,962

256

6.04%

Loans, net

634,664

7,089

4.47%

549,877

6,101

4.44%

       Total earning assets

729,525

7,596

4.17%

644,783

6,714

4.17%

Cash and due from banks

29,322

32,284

Allowance for loan losses

(7,511)

(7,100)

Premises and equipment

18,981

17,974

Other assets

44,106

43,257

      Total assets

$

814,423

$

731,198

Liabilities

Savings and interest bearing demand

$

349,892

143

0.16%

$

314,959

95

0.12%

Time deposits

196,645

566

1.15%

159,777

397

0.99%

Repurchase agreements & Other

11,493

2

0.07%

14,527

3

0.08%

Advances from Federal Home Loan Bank

24,348

86

1.41%

29,897

95

1.27%

Trust preferred securities

10,310

68

2.64%

10,310

56

2.17%

      Total interest bearing liabilities

592,688

865

0.58%

529,470

646

0.49%

Non interest bearing demand

125,689

-

111,186

-

      Total funding

718,377

0.48%

640,656

0.40%

Other liabilities

9,613

9,631

      Total liabilities

727,990

650,287

Equity

86,433

80,911

      Total liabilities and equity

$

814,423

$

731,198

Net interest income (tax equivalent basis)

$              6,731

$              6,068

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

3.69%

3.76%

Twelve Months Ended Dec. 31, 2016

Twelve Months Ended Dec. 31, 2015

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

79,301

1,461

1.84%

$

78,840

1,506

1.91%

Nontaxable securities

15,365

900

5.86%

17,593

1,052

5.98%

Loans, net

603,875

27,035

4.48%

531,614

23,745

4.47%

       Total earning assets

698,541

29,396

4.21%

628,047

26,303

4.19%

Cash and due from banks

34,999

38,895

Allowance for loan losses

(7,389)

(6,979)

Premises and equipment

19,124

16,427

Other assets

43,770

43,196

      Total assets

$

789,045

$

719,586

Liabilities

Savings and interest bearing demand

$

345,302

524

0.15%

$

309,169

346

0.11%

Time deposits

184,640

2,054

1.11%

162,245

1,633

1.01%

Repurchase agreements & Other

15,027

16

0.11%

15,749

17

0.11%

Advances from Federal Home Loan Bank

23,892

352

1.47%

29,996

375

1.25%

Trust preferred securities

10,310

252

2.44%

10,310

213

2.07%

      Total interest bearing liabilities

579,171

3,198

0.55%

527,469

2,584

0.49%

Non interest bearing demand

115,905

0.46%

104,426

0.41%

      Total funding

695,076

631,895

Other liabilities

9,429

9,073

      Total liabilities

704,505

640,968

Equity

84,540

78,618

      Total liabilities and equity

$

789,045

$

719,586

Net interest income (tax equivalent basis)

$            26,198

$            23,719

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

3.75%

3.78%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-fourth-quarter-and-full-year-2016-results-300393805.html

SOURCE SB Financial Group, Inc.


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