SB Financial Group, Inc. Announces First Quarter 2019 Results

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April 18, 2019 9:00 AM EDT

DEFIANCE, Ohio, April 18, 2019 /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 first quarter ended March 31, 2019.

First quarter 2019 highlights over prior year first quarter include:

  • Net income of $2.2 million; adjusted net income of $2.8 million, up $0.3 million or 13.6 percent
  • Diluted EPS of $0.28; adjusted diluted EPS of $0.35, flat to the prior year
  • Mortgage origination volume of $51.4 million, a decrease of $7.1 million, or 12.1 percent

First quarter 2019 trailing twelve-month highlights include:

  • Loan growth of $75.3 million, or 10.6 percent
  • Deposit growth of $78.9 million, or 10.5 percent
  • Mortgage origination volume of $335.0 million, an increase of $17.4 million, or 5.5 percent; servicing portfolio of $1.09 billion, up $89.3 million, or 8.9 percent

 

Highlights

Three Months Ended

($ in thousands, except per share & ratios)

Mar. 2019

Mar. 2018

% Change

Operating revenue 

$11,340

$11,943

-5.0%

Interest income 

10,498

8,851

18.6%

Interest expense

2,158

1,151

87.5%

Net interest income 

8,340

7,700

8.3%

Provision for loan losses

-

300

-100.0%

Noninterest income

3,000

4,243

-29.3%

Noninterest expense

8,626

8,627

0.0%

Net income 

2,226

2,453

-9.3%

Earnings per diluted share

0.28

0.35

-20.0%

Return on average assets

0.89%

1.08%

-17.6%

Return on average equity

6.76%

9.03%

-25.1%

Non-GAAP Measures

Adjusted net income

$2,785

$2,453

13.5%

Adjusted diluted EPS

0.35

0.35

0.0%

Net interest margin (FTE)

3.81%

3.86%

-1.3%

 

"SB Financial's first quarter GAAP results were impacted by the inversion of the rate curve, resulting in an impairment to our mortgage servicing rights.  Adjusting for that temporary event, net income was up over 13 percent," said Mark A. Klein, Chairman, President, and CEO of SB Financial.  "Organic balance sheet loan and deposit growth of $11 and $25 million, respectively, offset a softer mortgage origination quarter."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was down 5.0 percent from the first quarter of 2018, and down 9.6 percent to the linked quarter. However, when adjusting for the Originated Mortgage Servicing Rights (OMSR) temporary impairment, total revenue was up 0.9 percent from the prior year.

  • Net interest income was up 8.3 percent from the year-ago quarter, but down 3.1 percent from the linked quarter.
  • Net interest margin (FTE) was down 5 basis point from the year-ago quarter and down 15 basis points from the linked quarter.
  • Noninterest income for the quarter was down from both year ago and linked quarter by 29 and 24 percent, respectively. Adjusting for the temporary OMSR impairment, noninterest income would be down 13 and 6 percent, respectively.

Mortgage Loan Business

Mortgage loan originations for the first quarter of 2019 were $51.4 million, down $7.1 million, or 12.1 percent, from the year-ago quarter.  Total sales of originated loans were $43.5 million, up $2.9 million, or 7.1 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 $0.9 million for the first quarter of 2019, compared to $1.6 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the first quarter of 2019 was a negative $0.7 million, compared to a positive adjustment of $0.1 million for the first quarter of 2018.  The temporary impairment for the quarter was due to the inversion of the yield curve and the rapid acceleration of pre-payment speed assumptions.  The aggregate servicing valuation impairment ended the quarter at $0.9 million.  The servicing portfolio at March 31, 2019, was $1.09 billion, up $0.90 million, or 8.9 percent, from $1.0 billion at March 31, 2018.

Mr. Klein noted, "We experienced a slowing mortgage origination market this quarter as market factors and decreased inventory impacted our results.  We continue to believe our regional production model and geographic diversity will lead to greater market presence." 

Mortgage Banking

($ in thousands)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Mortgage originations

$51,417

$78,829

$95,289

$109,466

$58,485

Mortgage sales

43,472

60,345

80,555

79,162

40,589

Mortgage servicing portfolio

1,094,060

1,084,678

1,066,402

1,030,780

1,004,728

Mortgage servicing rights

10,838

11,347

11,129

10,634

10,195

Mortgage servicing revenue:

Loan servicing fees

682

673

653

636

625

OMSR amortization

(254)

(300)

(318)

(367)

(246)

Net administrative fees

428

373

335

269

379

OMSR valuation adjustment

(708)

(68)

(62)

(22)

92

Net loan servicing fees

(280)

305

273

247

471

Gain on sale of mortgages

1,192

1,646

2,066

2,058

1,100

Mortgage banking revenue, net

$912

$1,951

$2,339

$2,305

$1,571

 

Noninterest Income and Noninterest Expense

SB Financial's noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales and the sale of Small Business Administration (SBA) and US Department of Agriculture (USDA) loans.  SBA and USDA activity for the quarter consisted of total origination volume of $3.0 million with sales volume of $2.2 million resulting in gains of $0.3 million.  Wealth management assets under the Company's care stood at $462.6 million as of March 31, 2019, up $39.3 million from the linked quarter and up $50.9 million from the year ago quarter.  For the first quarter of 2019, noninterest income as a percentage of total revenue was 26.5 percent (30.8 percent when adjusting for the OMSR impairment).  Results included revenue from the Company's newly acquired Title Agency, which will further add to our revenue diversity throughout 2019. 

For the first quarter of 2019, noninterest expense of $8.6 million was flat to the prior year and down $0.2 million from the linked quarter.  Lower mortgage production volumes reduced compensation expense compared to the prior year. 

Mr. Klein stated, "Fee income levels from mortgage lending were down this quarter and the OMSR temporary impairment had a significant impact on our operating results.  We closed on our Title Agency acquisition in March, and we are excited for the opportunities that this new revenue stream will offer.  We continue to pay close attention to expenses and are committed to measured expense growth, in line with revenue increases."

Noninterest Income / Noninterest Expense 

($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Noninterest Income (NII)

$3,000

$3,930

$4,202

$4,249

$4,243

NII / Total Revenue

26.5%

31.3%

33.0%

33.5%

35.5%

NII / Average Assets

1.2%

1.6%

1.8%

1.8%

1.9%

Noninterest Expense (NIE)

$8,626

$8,852

$8,789

$8,579

$8,627

Efficiency Ratio

76.1%

70.6%

69.0%

67.7%

72.2%

NIE / Average Assets

3.5%

3.6%

3.7%

3.7%

3.8%

Net Noninterest Expense

-2.3%

-2.0%

-1.9%

-1.9%

-1.9%

 

Balance Sheet

Total assets as of March 31, 2019, were $1.0 billion, up $95.6 million, or 10.3 percent, from a year ago.  Total equity as of March31, 2019, was $131.5 million, up 7.0 percent from a year ago, and comprised 12.9 percent of total assets. 

Total loans held for investment were $782.5 million at March 31, 2019, up $75.3 million, or 10.7 percent, from March 31, 2018.  Residential real estate loans were up $35.7 million, or 23.5 percent, with commercial loans rising $28.6 million, or 26.6 percent.

The investment portfolio of $99.9 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 9.8 percent of assets at March 31, 2019, and was up 4.4 percent from the year-ago period.  Deposit balances of $827.7 million at March31, 2019, increased by $78.9 million or 10.5 percent, since March31, 2018.  Growth from the prior year included $7.6 million in checking and $71.3 million in savings and time deposit balances.

Mr. Klein continued, "Both loan and deposit volumes were up over 10 percent from the prior year and grew 14 and 31 percent for the quarter, respectively.  Nonperforming assets to total assets ended the quarter at 42 basis points, up just 4 basis points from the prior year."

Loan Balance

($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Annual Growth

Commercial

$136,201

$127,640

$119,810

$115,140

$107,579

$28,622

% of Total

17.4%

16.5%

15.5%

15.3%

15.2%

26.6%

Commercial RE

343,900

340,791

356,563

350,266

338,586

5,314

% of Total

43.9%

44.2%

46.2%

46.5%

47.9%

1.6%

Agriculture

50,620

52,012

52,814

52,466

50,266

354

% of Total

6.5%

6.7%

6.8%

7.0%

7.1%

0.7%

Residential RE

187,548

187,104

178,033

172,773

151,820

35,728

% of Total

24.0%

24.2%

23.1%

22.9%

21.5%

23.5%

Consumer & Other

64,254

64,336

64,478

62,640

58,956

5,298

% of Total

8.2%

8.3%

8.4%

8.3%

8.3%

9.0%

Total Loans

$782,523

$771,883

$771,698

$753,285

$707,207

$75,316

Total Growth Percentage

10.6%

Deposit Balance

($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Annual Growth

Non-Int DDA

$146,327

$144,592

$134,747

$131,125

$132,919

$13,408

% of Total

17.7%

18.0%

17.1%

17.4%

17.8%

10.1%

Interest DDA

132,101

130,628

130,897

129,486

137,893

(5,792)

% of Total

16.0%

16.3%

16.6%

17.2%

18.4%

-4.2%

Savings

115,272

104,444

114,213

118,108

116,820

(1,548)

% of Total

13.8%

12.9%

14.4%

15.7%

15.6%

-1.3%

Money Market

175,334

181,426

170,190

151,228

143,679

31,655

% of Total

21.2%

22.6%

21.6%

20.1%

19.2%

22.0%

Certificates

258,624

241,462

239,379

222,932

217,484

41,140

% of Total

31.2%

30.1%

30.3%

29.6%

29.0%

18.9%

Total Deposits

$827,658

$802,552

$789,426

$752,879

$748,795

$78,863

Total Growth Percentage

10.5%

 

Asset Quality

SB Financial maintained its high-performance among its peers in asset quality levels for the quarter, reporting nonperforming assets of $4.3 million as of March 31, 2019, up $0.8 million, or 22.3 percent, from the year-ago quarter.  SB Financial's nonperforming assets to total assets ratio of 0.42 percent is in the top quartile of its 65-bank peer group.  The coverage of problem loans by the loan loss allowance was at 204 percent at March 31, 2019, down from 239 percent at March 31, 2018.

Summary of Nonperforming Assets

Annual Growth

($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Commercial & Agriculture

$998

$731

$360

$33

$35

$963

% of Total Com./Ag. loans

0.53%

0.41%

0.21%

0.02%

0.02%

N/M

Commercial RE 

212

218

228

234

487

(275)

% of Total CRE loans

0.06%

0.06%

0.06%

0.07%

0.14%

-56.5%

Residential RE

1,612

1,738

1,541

1,634

1,714

(102)

% of Total Res. RE loans

0.86%

0.93%

0.87%

0.95%

1.13%

-6.0%

Consumer & Other

325

219

252

221

85

240

% of Total Con./Oth. loans  

0.51%

0.34%

0.39%

0.35%

0.14%

N/M

Total Nonaccruing Loans 

3,147

2,906

2,381

2,122

2,321

826

% of Total loans

0.40%

0.38%

0.31%

0.28%

0.33%

35.6%

Accruing Restructured Loans

827

928

940

1,101

1,115

(288)

Total Growth (%)

-25.8%

Total Nonaccruing & Restructured Loans

3,974

3,834

3,321

3,223

3,436

538

% of Total loans

0.51%

0.50%

0.43%

0.43%

0.49%

15.7%

Foreclosed Assets

313

131

105

16

70

243

Total Growth (%)

347.1%

Total Nonperforming Assets

$4,287

$3,965

$3,426

$3,239

$3,506

$781

% of Total assets

0.42%

0.40%

0.35%

0.34%

0.38%

22.3%

 

Webcast and Conference Call

The Company will hold a related conference call and webcast on April 18, 2019, at 5:00 p.m. EDT.  Interested parties may access the conference call by dialing 1-888-338-9469.  The webcast can be accessed at www.yoursbfinancial.com/investorrelations.html.  An audio replay of the call will be available on the SB Financial website.

About SB Financial Group                                                                          

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 20 offices; 19 in nine Ohio counties and one in Fort Wayne, Indiana, and 26 full-service ATMs.  The Company has seven loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan.  SB Financial's common stock is listed on the NASDAQ Capital Market under the symbol "SBFG".  SB Financial's preferred stock is listed on the NASDAQ Capital Market under the symbol "SBFGP".  

In May 2018, SB Financial was ranked #72 on the American Banker Magazine's list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity ("ROE").

Forward-Looking Statements

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial's Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission.  Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

Non-GAAP Financial Measures

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

Investor Contact Information: Anthony V. CosentinoExecutive Vice President and Chief Financial Officer[email protected]

 

 

SB FINANCIAL GROUP, INC.  

CONSOLIDATED BALANCE SHEETS - (Unaudited)

March

December

September

June

March

($ in thousands)

2019

2018

2018

2018

2018

ASSETS

Cash and due from banks

$       62,962

$       48,363

$       45,515

$       24,413

$       48,329

Available-for-sale securities

95,802

90,969

84,114

89,911

91,987

Loans held for sale

4,346

4,445

6,888

7,551

8,893

Loans, net of unearned income

782,523

771,883

771,698

753,285

707,207

Allowance for loan losses

(8,121)

(8,167)

(8,489)

(8,494)

(8,219)

Premises and equipment, net

23,270

22,084

21,900

21,683

21,776

Federal Reserve and FHLB Stock, at cost

4,123

4,123

4,123

3,748

3,748

Foreclosed assets held for sale, net

313

131

105

16

70

Interest receivable

3,123

2,822

2,433

2,000

1,925

Goodwill and other intangibles

17,838

16,401

16,404

16,406

16,409

Cash value of life insurance

16,966

16,834

16,745

16,656

16,567

Mortgage servicing rights

10,838

11,365

11,129

10,633

10,196

Other assets

7,288

5,575

6,615

6,977

6,753

Total assets

$  1,021,271

$     986,828

$     979,180

$     944,785

$     925,641

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non interest bearing demand

$     146,327

$     144,592

$     134,747

$     131,125

$     132,919

Interest bearing demand

132,101

130,628

130,897

129,486

137,893

Savings

115,272

104,444

114,213

118,108

116,820

Money market

175,334

181,426

170,190

151,228

143,679

Time deposits

258,624

241,462

239,379

222,932

217,484

Total deposits

827,658

802,552

789,426

752,879

748,795

Repurchase agreements

12,255

15,184

15,539

18,191

14,505

Federal Home Loan Bank advances

24,000

16,000

24,500

26,500

18,500

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Interest payable

1,123

909

891

685

633

Other liabilities

14,419

11,438

11,405

11,116

9,999

Total liabilities

889,765

856,393

852,071

819,681

802,742

Shareholders' Equity

Preferred stock

13,978

13,979

13,979

13,983

13,983

Common stock

40,486

40,485

40,485

40,481

40,481

Additional paid-in capital

15,143

15,226

15,160

15,098

15,189

Retained earnings

65,438

64,012

61,854

59,503

57,162

Accumulated other comprehensive loss

124

(552)

(1,654)

(1,240)

(941)

Treasury stock

(3,663)

(2,715)

(2,715)

(2,721)

(2,975)

Total equity

131,506

130,435

127,109

125,104

122,899

Total liabilities and shareholders' equity

$  1,021,271

$     986,828

$     979,180

$     944,785

$     925,641

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except per share & ratios)

At and for the Three Months Ended

March

December

September

June

March

Interest income

2019

2018

2018

2018

2018

Loans

  Taxable 

$        9,427

$        9,661

$        9,499

$        8,968

$        8,140

  Tax exempt

62

55

42

36

21

Securities

  Taxable 

911

822

610

613

573

  Tax exempt

98

100

107

115

117

Total interest income

10,498

10,638

10,258

9,732

8,851

Interest expense

Deposits

1,918

1,776

1,472

1,091

975

Repurchase agreements & other

26

10

11

6

10

Federal Home Loan Bank advances

100

131

140

110

79

Trust preferred securities

114

107

106

101

87

Total interest expense

2,158

2,024

1,729

1,308

1,151

Net interest income

8,340

8,614

8,529

8,424

7,700

Provision for loan losses 

-

-

-

300

300

Net interest income after provision

  for loan losses

8,340

8,614

8,529

8,124

7,400

Noninterest income

Wealth Management Fees

734

717

705

710

739

Customer service fees

631

679

672

675

644

Gain on sale of mtg. loans & OMSR

1,192

1,646

2,066

2,058

1,100

Mortgage loan servicing fees, net

(280)

305

273

247

471

Gain on sale of non-mortgage loans

327

295

125

150

660

Title insurance income

19

-

-

-

-

Net gain on sales of securities

-

-

70

-

-

Gain/(loss) on sale of assets

(2)

14

-

60

(39)

Other

379

274

291

349

668

Total noninterest income

3,000

3,930

4,202

4,249

4,243

Noninterest expense

Salaries and employee benefits

4,902

5,108

5,372

5,201

4,939

Net occupancy expense

645

600

588

560

649

Equipment expense

711

756

667

637

829

Data processing fees

443

466

489

418

438

Professional fees

617

532

393

504

419

Marketing expense

239

262

197

204

221

Telephone and communication

115

121

124

128

122

Postage and delivery expense

84

66

83

63

74

State, local and other taxes

255

180

177

176

186

Employee expense

153

283

243

220

166

Other expenses

462

478

456

468

584

Total noninterest expense

8,626

8,852

8,789

8,579

8,627

Income before income tax expense

2,714

3,692

3,942

3,794

3,016

Income tax expense

488

732

824

687

563

Net income 

$        2,226

$        2,960

$        3,118

$        3,107

$        2,453

Preferred Share Dividends 

244

243

244

244

244

Net income available to common shareholders

1,982

2,717

2,874

2,863

2,209

Common share data:

Basic earnings per common share

$          0.31

$          0.42

$          0.45

$          0.45

$          0.40

Diluted earnings per common share

$          0.28

$          0.37

$          0.39

$          0.40

$          0.35

Average shares outstanding (in thousands):

Basic:

6,482

6,503

6,503

6,489

5,519

Diluted: 

7,994

8,030

8,022

8,003

7,055

 

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               

($ in thousands, except per share & ratios)

At and for the Three Months Ended

March

December

September

June

March

SUMMARY OF OPERATIONS

2018

2018

2018

2018

2018

   Net interest income 

$8,340

$8,614

$8,529

$8,424

$7,700

         Tax-equivalent adjustment

43

41

40

40

37

   Tax-equivalent net interest income 

8,383

8,655

8,569

8,464

7,737

   Provision for loan loss 

-

-

-

300

300

   Noninterest income

3,000

3,930

4,202

4,249

4,243

   Total operating revenue

11,340

12,544

12,731

12,673

11,943

   Noninterest expense

8,626

8,852

8,789

8,579

8,627

   Pre-tax pre-provision income

2,714

3,692

3,942

4,094

3,316

   Pretax income

2,714

3,692

3,942

3,794

3,016

   Net income 

2,226

2,960

3,118

3,107

2,453

   Income available to common shareholders 

1,982

2,717

2,874

2,863

2,209

PER SHARE INFORMATION:

   Basic earnings per share

$0.31

$0.42

$0.45

$0.45

$0.40

   Diluted earnings per share

0.28

0.37

0.39

0.40

0.35

   Common dividends

0.085

0.085

0.080

0.080

0.075

   Book value per common share

16.57

16.36

15.94

15.73

15.49

   Tangible book value per common share (TBV)

15.43

15.39

14.87

14.57

14.27

   Fully converted TBV per common share

14.32

14.30

13.88

13.66

13.42

   Market price per common share

18.02

16.45

20.35

20.32

18.51

   Market price per preferred share

19.00

17.90

20.25

19.82

18.20

   Market price to tangible book value

116.8%

106.9%

136.8%

139.5%

129.7%

   Market price to fully converted TBV

125.8%

115.0%

146.6%

148.7%

137.9%

   Market price to trailing 12 month EPS

12.6

11.0

11.5

11.2

10.3

PERFORMANCE RATIOS:

   Return on average assets (ROAA)

0.89%

1.19%

1.30%

1.35%

1.08%

   Pre-tax pre-provision ROAA

1.08%

1.48%

1.64%

1.78%

1.46%

   Return on average equity

6.76%

9.21%

9.89%

10.02%

9.03%

   Return on average tangible equity

8.83%

12.06%

13.02%

13.28%

12.54%

   Efficiency ratio 

76.05%

70.55%

69.01%

67.67%

72.22%

   Earning asset yield

4.78%

4.86%

4.75%

4.76%

4.41%

   Cost of interest bearing liabilities

1.20%

1.15%

1.00%

0.80%

0.71%

   Net interest margin

3.79%

3.93%

3.95%

4.12%

3.84%

   Tax equivalent effect

0.02%

0.02%

0.01%

0.02%

0.02%

   Net interest margin, tax equivalent 

3.81%

3.95%

3.96%

4.14%

3.86%

   Non interest income/Average assets

1.20%

1.58%

1.75%

1.84%

1.87%

   Non interest expense/Average assets

3.45%

3.56%

3.65%

3.72%

3.81%

   Net noninterest expense/Average assets

2.25%

1.98%

1.91%

1.88%

1.93%

ASSET QUALITY RATIOS:

   Gross charge-offs

$60

$322

$12

$54

$19

   Recoveries

13

1

6

29

9

   Net charge-offs

47

321

6

25

10

   Nonaccruing loans/ Total loans

0.40%

0.38%

0.31%

0.28%

0.33%

   Nonperforming loans/ Total loans

0.51%

0.50%

0.43%

0.43%

0.49%

   Nonperforming assets/ Loans & OREO

0.55%

0.51%

0.44%

0.43%

0.50%

   Nonperforming assets/ Total assets

0.42%

0.40%

0.35%

0.34%

0.38%

   Allowance for loan loss/ Nonperforming loans

204.35%

213.02%

255.62%

263.54%

239.20%

   Allowance for loan loss/ Total loans

1.04%

1.06%

1.10%

1.13%

1.16%

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

0.02%

0.17%

0.00%

0.01%

0.01%

   Loan loss provision/ Net charge-offs

0.00%

0.00%

0.00%

1200.00%

3000.00%

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

94.55%

96.18%

97.75%

100.05%

94.45%

   Equity/ Assets

12.88%

13.22%

12.98%

13.24%

13.28%

   Tangible equity/ Tangible assets

9.93%

10.31%

10.05%

10.20%

10.17%

   Tangible equity adjusted for conversion

11.33%

11.75%

11.50%

11.71%

11.71%

   Common equity tier 1 ratio (Bank) - 3/19 est.

12.87%

12.57%

12.16%

11.91%

12.23%

END OF PERIOD BALANCES

   Total assets

$1,021,271

$986,828

$979,180

$944,785

$925,641

   Total loans 

782,523

771,883

771,698

753,285

707,207

   Deposits

827,658

802,552

789,426

752,879

748,795

   Stockholders equity

131,506

130,435

127,109

125,104

122,899

   Goodwill & intangibles

17,838

16,401

16,404

16,406

16,409

   Preferred equity

13,978

13,979

13,979

13,983

13,983

   Tangible equity

99,690

100,055

96,726

94,715

92,507

   Mortgage servicing portfolio

1,094,060

1,084,678

1,066,402

1,030,780

1,004,728

   Wealth/Brokerage assets under care

462,580

423,289

412,218

407,592

411,654

   Total assets under care

2,577,911

2,494,795

2,457,800

2,383,157

2,342,023

   Full-time equivalent employees (actual)

256

250

250

241

240

   Period end basic shares outstanding

6,460

6,503

6,503

6,502

6,483

   Period end outstanding (Series A Converted)

1,475

1,472

1,470

1,453

1,453

   Market capitalization (all)

144,898

133,824

162,711

161,851

147,300

AVERAGE BALANCES

   Total assets

$1,001,282

$994,977

$962,369

$922,355

$906,281

   Total earning assets 

879,394

875,747

864,490

817,270

802,358

   Total loans 

775,280

775,060

770,948

724,710

711,733

   Deposits

812,190

803,928

769,266

739,877

738,867

   Stockholders equity

131,691

128,539

126,144

123,990

108,662

   Intangibles

16,880

16,403

16,405

16,407

16,410

   Preferred equity

13,979

13,979

13,983

13,983

13,983

   Tangible equity

100,832

98,157

95,756

93,600

78,269

   Average basic shares outstanding

6,482

6,503

6,503

6,489

5,519

   Average diluted shares outstanding

7,994

8,030

8,022

8,003

7,055

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended March 31, 2019 and 2018

($ in thousands)

Three Months Ended Mar. 31, 2019

Three Months Ended Mar. 31, 2018

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$            94,623

$                 911

3.85%

$            77,802

$                 573

2.95%

Nontaxable securities

9,491

98

4.13%

12,823

117

3.66%

Loans, net

775,280

9,489

4.90%

711,733

8,161

4.59%

       Total earning assets

879,394

10,498

4.78%

802,358

8,851

4.41%

Cash and due from banks

56,976

38,145

Allowance for loan losses

(8,284)

(8,043)

Premises and equipment

22,650

21,307

Other assets

50,546

52,514

      Total assets

$        1,001,282

$           906,281

Liabilities

Savings, MMDA and interest bearing demand

$           422,649

$                 722

0.68%

$           389,809

$                 256

0.26%

Time deposits

249,655

1,196

1.92%

214,645

719

1.34%

Repurchase agreements & other

17,704

26

0.59%

18,124

10

0.22%

Advances from Federal Home Loan Bank

16,267

100

2.46%

18,500

79

1.71%

Trust preferred securities

10,310

114

4.42%

10,310

87

3.38%

      Total interest bearing liabilities

716,585

2,158

1.20%

651,388

1,151

0.71%

Non interest bearing demand

139,886

-

134,413

-

      Total funding

856,471

1.01%

785,801

0.59%

Other liabilities

13,120

11,818

      Total liabilities

869,591

797,619

Equity

131,691

108,662

      Total liabilities and equity

$        1,001,282

$           906,281

Net interest income

$              8,340

$              7,700

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

3.79%

3.84%

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

3.81%

3.86%

 - Computed on a fully tax equivalent (FTE) basis

 

 

Non-GAAP reconciliation

 1st Quarter 2019 

 3 Months ended 

 3 Months ended 

($ in thousands, except per share & ratios)

 March 31, 2019 

 March 31, 2018 

Total Revenues

$            11,340

$            11,943

 Adjustment to remove temporary impairment*

708

-

Adjusted Total Revenues

$            12,048

$            11,943

Income before Income Taxes

$              2,714

$              3,016

 Adjustment to remove temporary impairment

708

-

Adjusted Income before Income Taxes

$              3,422

$              3,016

Provision for Income Taxes

$                 488

$                 563

 Adjustment to remove temporary impairment

149

-

Adjusted Provision for Income Taxes

$                 637

$                 563

Net Income

$              2,226

$              2,453

 Adjustment to remove temporary impairment

559

-

Adjusted Net Income

$              2,785

$              2,453

Diluted Earnings per Share

$                0.28

$                0.35

 Adjustment to remove temporary impairment

0.07

-

Adjusted Diluted Earnings per Share

$                0.35

$                0.35

Return on Average Assets

0.89%

1.08%

 Adjustment to remove temporary impairment

0.06%

-

Adjusted Return on Average Assets

0.95%

1.08%

* 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-first-quarter-2019-results-300834603.html

SOURCE SB Financial Group, Inc.


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