SB Financial Group, Inc. Announces Second-Quarter and Six-Month 2017 Results

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Year-to-date earnings per share growth of 11.5% and loan growth of 8%

July 20, 2017 4:23 PM EDT

DEFIANCE, Ohio, July 20, 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 second-quarter and six-months ended June 30, 2017.

Second-quarter 2017 highlights over prior-year second quarter include:

  • Net income of $2.3 million, an increase of 2.3 percent, or $0.1 million
  • Return on average assets of 1.09 percent
  • Diluted earnings per share (EPS) of $0.37, an increase of 5.7 percent, or $0.02 per share
  • Mortgage origination volume of $97.8 million, a decrease of 11.3 percent, or $12.4 million from $110.2 million

Six-months ended June 30, 2017 highlights over prior-year six months include:

  • Net income of $4.3 million, an increase of 9.9 percent, or $0.4 million
  • Return on average assets of 1.03 percent
  • Diluted earnings per share (EPS) of $0.68, an increase of 11.5 percent, or $0.07 per share

Trailing twelve months (TTM) ended June 30, 2017 results compared to same period prior year:

  • Loan growth of $46.8 million, or 7.7 percent vs. $82.4 million or 15.8 percent
  • Deposit growth of $59.0 million, or 9.1 percent vs. $85.4 million or 15.2 percent
  • Servicing portfolio of $952.4 million, up 14.5 percent, or $120.6 million
  • Diluted earnings per share (EPS) of $1.45, an increase of 16.0 percent, or $0.20 per share

 

Highlights

Three Months Ended

  Six Months Ended

($000's except ratios and share data)

Jun. 2017

Jun. 2016

 

% Change

 

Jun. 2017

 

    Jun. 2016

 

% Change

Operating revenue

$ 11,425

$ 10,730

6.5%

$ 21,733

$ 20,281

7.2%

Interest income

7,966

7,213

10.4

15,380

14,040

9.5

Interest expense

1,003

790

27.0

1,911

1,505

27.0

Net interest income

6,963

6,423

8.4

13,469

12,535

7.5

Noninterest income

4,462

4,307

3.6

8,264

7,746

6.7

Noninterest expense

7,806

7,407

5.4

15,188

14,302

6.2

Net income

2,317

2,265

2.3

4,310

3,920

9.9

Earnings per diluted share

0.37

0.35

5.7

0.68

0.61

11.5

Net interest margin (FTE)

3.73%

3.75%

(0.5)

3.66%

3.75%

(2.4)

Return on assets

1.09%

1.15%

(5.2)

1.03%

1.01%

2.0

Return on equity

10.45%

10.80%

(3.2)

9.80%

9.43%

3.9

"Lower mortgage originations impacted our quarterly performance, although we were pleased to show positive earnings growth from both the prior-year and linked quarters," said Mark A. Klein, Chairman, President and CEO of SB Financial.  "For the first half of this year; double digit earnings growth, strong loan and deposit volume and improving asset quality are the headlines."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 6.5 percent from the second quarter of 2016, and up 10.8 percent from the linked quarter.

  • Net interest income was up 8.4 percent from the year-ago quarter, and up 7.0 percent from the linked quarter.
  • Net interest margin (FTE) was down 2 basis points from the year-ago quarter, but up 14 basis points from the linked quarter.
  • Noninterest income was up 3.6 percent from the year-ago quarter, and up 17.4 percent from the linked quarter.
  • Total revenue for the first six months of 2017 was $21.7 million compared to $20.3 million for the first six months of 2016, which is a 7.2 percent increase.

Mortgage Loan Business

Mortgage loan originations for the second quarter of 2017 were $97.8 million, down $12.4 million, or 11.3 percent, from the year-ago quarter.  Total sales of originated loans were $80.0 million, down $15.1 million, or 15.9 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 2017, compared to $2.0 million for the year-ago quarter, or a 14.6 percent increase.  The mortgage servicing valuation adjustment for the second quarter 2017 was a negative $0.04 million, compared to a negative adjustment of $0.5 million for the second quarter of 2016.  The aggregate servicing valuation impairment ended the quarter at $0.2 million.  The mortgage-servicing portfolio at June 30, 2017, was $952.4 million, up $120.6 million, or 14.5 percent, from $831.8 million at June 30, 2016.

Mr. Klein noted, "Mortgage production improved this quarter, up $41 million from the linked quarter.  We continue to see the shift away from refinance activity as our purchase volume was over 95 percent in the quarter.  Despite an 11 percent decrease in volume from the prior year, our revenue, adjusting for impairment was only down 5.5 percent due to better pricing and operational efficiencies."

Mortgage Banking ($000's)

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Jun. 2016

Mortgage originations

$  97,804

$  56,667

$  83,469

$  117,209

$  110,210

Mortgage sales

80,038

50,473

81,689

101,147

95,150

Mortgage servicing portfolio

952,364

917,435

899,710

868,783

831,781

Mortgage servicing rights

9,217

8,927

8,422

6,887

6,494

 

Mortgage servicing revenue:

Loan servicing fees

583

566

553

531

505

OMSR amortization

(303)

(218)

(462)

(397)

(309)

Net administrative fees

280

348

91

134

196

OMSR valuation adjustment

(39)

35

1,233

71

(469)

Net loan servicing fees

241

383

1,324

205

(273)

Gain on sale of mortgages

2,063

1,250

2,002

2,503

2,284

Mortgage banking revenue, net

$2,304

$1,633

$3,326

$2,708

$2,011

Noninterest Income and Noninterest Expense

SB Financial's noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees and the sale of small business loans (SBA).  SBA activity for the quarter was strong, with total loan volume of $4.2 million and gains of $0.4 million.  Wealth management assets under the Company's care stood at $407.3 million as of June 30, 2017.  Noninterest income as a percentage of total revenue was 39.1 percent. 

For the second quarter of 2017, noninterest expense (NIE) of $7.8 million, was up $0.4 million, or 5.4 percent, compared to the same quarter last year.  The increase was due mainly to staffing growth in the mortgage, wealth management and SBA divisions.  Compared to the linked quarter, NIE was up $0.4 million, or 5.7 percent.

Mr. Klein stated, "SBA volume was above $4 million again this quarter and we are nearing $800 thousand in loan sale gains for the year, with an average sale price of nearly 12 points.  On the expense side, we continue to commit more resources to our sales and operational teams as we take market share, however the key metric of operating leverage has remained positive." 

Noninterest Income / Noninterest Expense

($000's)

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Jun. 2016

Noninterest Income (NII)

$ 4,462

$ 3,802

$ 5,128

$ 5,015

$ 4,307

NII / Total Revenue

39.1%

36.9%

43.6%

42.9%

40.1%

NII / Average Assets

2.1%

1.8%

2.5%

2.5%

2.2%

Noninterest Expense (NIE)

$ 7,806

$ 7,382

$ 7,859

$ 7,930

$ 7,407

Efficiency Ratio

68.3%

71.6%

66.7%

67.8%

69.0%

NIE / Average Assets

3.7%

3.6%

3.9%

4.0%

3.8%

Net Noninterest Expense

(1.6)

(1.7)

(1.3)

(1.5)

(1.6)

Balance Sheet

Total assets as of June 30, 2017, were $847.7 million, up $54.5 million, or 6.9 percent, from a year ago.  Total equity as of June 30, 2017, was $89.0 million, up 4.8 percent, from a year ago, and was at 10.5 percent of total assets. 

Total loans held for investment were $651.6 million at June 30, 2017, up $46.8 million, or 7.7 percent, from June 30, 2016.  Commercial real estate loans were up $34.2 million, or 13.1 percent, and accounted for the majority of the total loan growth.  Commercial (C&I) also rose $6.7 million, or 6.6 percent, from the prior period.

The investment portfolio of $107.1 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 12.6 percent of assets at June 30, 2017, and was up 11.3 percent from the year-ago period.  Deposit balances of $707.3 million at June 30, 2017, increased by $59.0 million, or 9.1 percent, since June 30, 2016.  Growth from the prior year included $11.1 million in checking and $47.9 million in savings and time deposit balances.

"Loan volume returned to a more anticipated level in the quarter at $24.9 million or an annualized growth rate of 16 percent," said Mr. Klein.  The loan pipeline remains strong throughout our regional markets and we continue to fund our growth with retail deposits."

Loan Portfolio ($000's)

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Jun. 2016

VarianceYOY

Commercial

$ 107,319

$ 102,392

$ 109,087

$ 101,245

$ 100,651

$ 6,668

% of Total

16.5%

16.4%

16.9%

16.4%

16.6%

6.6%

Commercial RE

296,116

282,951

284,084

268,408

261,923

34,193

% of Total

45.4%

45.1%

44.1%

43.3%

43.3%

13.1%

Agriculture

52,107

47,580

52,475

54,609

52,375

(268)

% of Total

8.0%

7.6%

8.2%

8.8%

8.7%

(0.5%)

Residential RE

137,214

136,762

142,452

139,757

135,506

1,708

% of Total

21.1%

21.8%

22.1%

22.6%

22.4%

1.3%

Consumer & Other

58,833

57,037

56,335

55,333

54,321

4,512

% of Total

9.0%

9.1%

8.7%

8.9%

9.0%

8.3%

Total Loans

$651,589

$626,722

$644,433

$619,352

$604,776

$ 46,813

Total Growth Percentage

7.7%

 

 

 

Deposit Bal. ($000's)

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Jun. 2016

VarianceYOY

Non-Int DDA

$ 124,213

$ 124,664

$ 125,189

$ 116,976

$ 110,899

$ 13,314

% of Total

17.6%

17.5%

18.6%

17.7%

17.1%

12.0%

Interest DDA

127,409

133,388

131,598

135,729

129,658

(2,249)

% of Total

18.0%

18.7%

19.5%

20.5%

20.0%

(1.7%)

Savings

104,720

103,901

95,594

89,265

84,975

19,745

% of Total

14.8%

14.6%

14.2%

13.5%

13.1%

23.2%

Money Market

130,987

138,915

122,976

126,501

134,365

(3,378)

% of Total

18.5%

19.5%

18.3%

19.1%

20.7%

(2.5%)

Certificates

220,004

212,047

197,716

193,673

188,403

31,601

% of Total

31.1%

29.7%

29.4%

29.3%

29.1%

16.8%

Total Deposits

$707,333

$712,915

$673,073

$662,144

$648,300

$ 59,033

Total Growth Percentage

9.1%

Asset Quality

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $3.9 million as of June 30, 2017, down $4.3 million, or 52.5 percent, from the year-ago quarter.  The decrease from the prior year resulted in the full principal payoff of two existing delinquent commercial real estate credits.  SB Financial's nonperforming assets to total assets ratio of 0.46 percent is down from the 1.04 percent at June 30, 2016.  The coverage of problem loans by the loan loss allowance was at 205.1 percent at June 30, 2017, up from the 92.3 percent at June 30, 2016.

Summary of Nonperforming Assets ($000's)

Nonperforming Category

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Jun. 2016

VarianceYOY

Commercial & Agriculture

$ 132

$ 187

$ 194

$ 151

$ 158

$(26)

% of Total Com./Ag. loans

0.08%

0.13%

0.12%

0.10%

0.12%

(16.5%)

Commercial RE

1,049

939

1,194

1,393

5,309

(4,260)

% of Total CRE loans

0.35%

0.33%

0.42%

0.52%

2.02%

(80.2%)

Residential RE

1,115

1,126

1,162

1,152

1,088

27

% of Total Res. RE loans

0.81%

0.82%

0.82%

0.82%

0.80%

2.5%

Consumer & Other

154

130

187

193

138

16

% of Total Con./Oth. loans 

0.26%

0.23%

0.33%

0.35%

0.25%

11.6%

Total Nonaccruing Loans

2,450

2,382

2,737

2,889

6,693

(4,243)

% of Total loans

0.38%

0.38%

0.43%

0.47%

1.11%

(63.4%)

Accruing Restructured Loans

1,366

1,383

1,590

1,588

1,381

 

Total Nonaccruing & Restructured Loans

$ 3,816

$ 3,765

$ 4,327

$ 4,477

$ 8,074

$ (4,258)

% of Total loans

0.59%

0.60%

0.67%

0.72%

1.34%

(52.7%)

Foreclosed Assets

94

950

994

73

157

 

Total Nonperforming Assets

$ 3,910

$ 4,715

$ 5,321

$ 4,550

$ 8,231

$ (4,321)

% of Total assets

0.46%

0.56%

0.65%

0.57%

1.04%

(52.5%)

 

Webcast and Conference Call

The Company will hold a related conference call and webcast on July 21, 2017, 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 with two operating subsidiaries: State Bank and Diverse Computer Marketers (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 24 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 2017, SB Financial was ranked #145 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)

2017

2017

2016

2016

2016

ASSETS

Cash and due from banks

$

21,385

45,740

17,012

25,167

29,945

Securities available for sale, at fair value

103,347

107,937

90,129

92,689

92,472

Other securities - FRB and FHLB Stock

3,748

3,748

3,748

3,748

3,748

Total investment securities

107,095

111,685

93,877

96,437

96,220

Loans held for sale

9,437

5,104

4,434

5,865

8,441

Loans, net of unearned income

651,589

626,722

644,433

619,352

604,776

Allowance for loan losses

(7,825)

(7,679)

(7,725)

(7,320)

(7,450)

Net loans

643,764

619,043

636,708

612,032

597,326

Premises, equipment and software, net

20,740

19,909

19,129

18,673

18,806

Cash surrender value of life insurance

13,859

13,791

13,725

13,653

13,581

Goodwill & other intangibles

16,417

16,419

16,422

16,426

16,429

Foreclosed assets held for sale, net

94

950

994

73

157

Mortgage servicing rights

9,217

8,727

8,422

6,887

6,494

Accrued interest receivable

1,411

1,462

1,512

1,641

1,397

Other assets

4,249

4,018

3,770

4,946

4,367

Total assets

$

847,668

846,848

816,005

801,800

793,163

LIABILITIES AND EQUITY

Deposits

Non interest bearing demand

$

124,213

124,664

125,189

116,976

110,899

Interest bearing demand

127,409

133,388

131,598

135,729

129,658

Savings deposits

104,720

103,901

95,594

89,265

84,975

Money market deposits

130,987

138,915

122,976

126,501

134,365

Time deposits

220,004

212,047

197,716

193,673

188,403

Total deposits

707,333

712,915

673,073

662,144

648,300

Advances from Federal Home Loan Bank

20,500

15,500

26,500

23,000

23,000

Repurchase agreements

11,175

11,796

10,532

11,363

17,797

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Accrued interest payable

563

450

408

427

384

Other liabilities

8,756

7,849

8,634

8,293

8,422

Total liabilities

758,637

758,820

729,457

715,537

708,213

Equity

Preferred shares

13,983

13,983

13,983

13,983

13,983

Common shares

12,569

12,569

12,569

12,569

12,569

Additional paid-in capital

15,260

15,224

15,362

15,370

15,367

Retained earnings

49,851

48,118

46,688

44,933

42,925

Accumulated other comprehensive income

340

136

51

1,237

1,552

Treasury shares

(2,972)

(2,002)

(2,105)

(1,829)

(1,446)

Total equity

89,031

88,028

86,548

86,263

84,950

Total liabilities and equity

$

847,668

846,848

816,005

801,800

793,163

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands - except share data)

At and for the Three Months Ended

Six Months Ended

June

March

December

September

June

June

June

Interest income

2017

2017

2016

2016

2016

2017

2016

Loans

  Taxable 

$

7,243

6,800

6,984

6,954

6,648

14,043

12,908

  Nontaxable

21

20

20

22

24

41

33

Securities

  Taxable 

569

461

364

378

392

1,030

794

  Nontaxable

133

133

144

145

149

266

305

Total interest income

7,966

7,414

7,512

7,499

7,213

15,380

14,040

Interest expense

Deposits

863

748

709

677

647

1,611

1,192

Repurchase Agreements & Other

6

4

2

5

4

10

9

Federal Home Loan Bank advances

63

86

86

83

77

149

183

Trust preferred securities

71

70

68

63

62

141

121

Total interest expense

1,003

908

865

828

790

1,911

1,505

Net interest income

6,963

6,506

6,647

6,671

6,423

13,469

12,535

Provision for loan losses 

200

-

500

-

-

200

250

Net interest income after provision

  for loan losses

6,763

6,506

6,147

6,671

6,423

13,269

12,285

Noninterest income

Wealth Management Fees

704

667

657

695

643

1,371

1,276

Customer service fees

667

640

653

692

680

1,307

1,360

Gain on sale of mtg. loans & OMSR's

2,063

1,250

2,002

2,503

2,284

3,313

3,667

Mortgage loan servicing fees, net

241

383

1,324

205

(273)

624

(719)

Gain on sale of non-mortgage loans

369

430

52

327

151

799

600

Data service fees

184

193

184

223

233

377

510

Net gain on sales of securities

-

-

-

59

92

-

203

Gain/(loss) on sale/disposal of assets

8

2

-

(31)

186

10

208

Other income

226

237

256

342

311

463

641

Total non-interest income

4,462

3,802

5,128

5,015

4,307

8,264

7,746

Noninterest expense

Salaries and employee benefits

4,667

4,386

4,656

4,672

4,314

9,053

8,093

Net occupancy expense

552

560

533

523

524

1,112

1,089

Equipment expense

683

641

735

649

639

1,324

1,234

Data processing fees

396

370

384

352

339

766

644

Professional fees

417

363

404

380

326

780

642

Marketing expense

206

195

154

123

199

401

370

Telephone and communication

113

116

111

101

102

229

201

Postage and delivery expense

59

174

148

154

162

233

359

State, local and other taxes

170

167

154

170

171

337

270

Employee expense

183

145

182

117

128

328

246

Other expenses

360

265

398

689

503

625

1,154

Total non-interest expense

7,806

7,382

7,859

7,930

7,407

15,188

14,302

Income before income tax expense

3,419

2,926

3,416

3,756

3,323

6,345

5,729

Income tax expense 

1,102

933

1,098

1,209

1,058

2,035

1,809

Net income 

$

2,317

1,993

2,317

2,547

2,265

4,310

3,920

Preferred Share Dividends 

244

244

244

244

244

488

488

Net income available to common shares

2,073

1,749

2,073

2,303

2,021

3,822

3,432

Common share data:

Basic earnings per common share

$

0.43

0.36

0.43

0.47

0.41

0.79

0.70

Diluted earnings per common share

$

0.37

0.31

0.37

0.40

0.35

0.68

0.61

Average shares outstanding ($ in thousands):

Basic:

4,827

4,859

4,846

4,874

4,893

4,839

4,894

Diluted: 

6,351

6,387

6,359

6,376

6,390

6,366

6,396

 

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               

($ in thousands, except per share data)

At and for the Three Months Ended

Six Months Ended

June

March

December

September

June

June

June

SUMMARY OF OPERATIONS

2017

2017

2016

2016

2016

2017

2016

   Net interest income 

$

6,963

6,506

6,647

6,671

6,423

13,469

12,535

         Tax-equivalent adjustment

$

79

79

84

86

89

158

174

   Tax-equivalent net interest income 

$

7,042

6,585

6,731

6,757

6,512

13,627

12,709

   Provision for loan loss 

$

200

-

500

-

-

200

250

   Noninterest income

$

4,462

3,802

5,128

5,015

4,307

8,264

7,746

   Total operating revenue

$

11,425

10,308

11,775

11,686

10,730

21,733

20,281

   Noninterest expense

$

7,806

7,382

7,859

7,930

7,407

15,188

14,302

   Pre-tax pre-provision income

$

3,619

2,926

3,916

3,756

3,323

6,545

5,979

   Pretax income

$

3,419

2,926

3,416

3,756

3,323

6,345

5,729

   Net income 

$

2,317

1,993

2,317

2,547

2,265

4,310

3,920

   Income available to common shareholders 

$

2,073

1,749

2,073

2,303

2,021

3,822

3,433

PER SHARE INFORMATION:

   Basic earnings per share

$

0.43

0.36

0.43

0.47

0.41

0.79

0.70

   Diluted earnings per share

$

0.37

0.31

0.37

0.40

0.35

0.68

0.61

   Common dividends

$

0.070

0.065

0.065

0.060

0.060

0.135

0.115

   Book value per common share

$

14.21

13.92

13.75

13.67

13.39

14.21

13.39

   Tangible book value per common share

$

12.20

11.83

11.59

11.49

11.15

12.20

11.15

   Market price per common share

$

16.88

16.72

16.05

12.53

10.87

16.88

10.87

   Market price per preferred share

$

16.89

16.85

15.85

13.50

11.83

16.89

11.83

PERFORMANCE RATIOS:

   Return on average assets (ROAA)

1.09%

0.96%

1.14%

1.28%

1.15%

1.03%

1.01%

   Pre-tax pre-provision ROAA

1.70%

1.41%

1.92%

1.89%

1.69%

1.56%

1.55%

   Return on average equity

10.45%

9.13%

10.72%

11.90%

10.80%

9.80%

9.43%

   Return on average tangible equity

15.91%

14.00%

16.54%

18.45%

16.94%

14.97%

14.87%

   Efficiency ratio 

68.30%

71.59%

66.71%

67.83%

69.00%

69.88%

70.49%

   Earning asset yield

4.26%

4.08%

4.17%

4.29%

4.20%

4.18%

4.19%

   Cost of interest bearing liabilities

0.64%

0.60%

0.58%

0.56%

0.55%

0.62%

0.53%

   Net interest margin

3.69%

3.55%

3.64%

3.77%

3.69%

3.62%

3.69%

   Tax equivalent effect

0.04%

0.04%

0.05%

0.05%

0.06%

0.04%

0.06%

   Net interest margin, tax equivalent 

3.73%

3.59%

3.69%

3.82%

3.75%

3.66%

3.75%

   Non interest income/Average assets

2.09%

1.84%

2.52%

2.52%

2.20%

1.97%

2.00%

   Non interest expense/Average assets

3.66%

3.57%

3.86%

3.98%

3.78%

3.62%

3.70%

   Net noninterest expense/Average assets

1.57%

1.73%

1.34%

1.46%

1.58%

1.65%

1.70%

ASSET QUALITY RATIOS:

   Gross charge-offs

$

69

51

269

136

2

120

96

   Recoveries

$

15

5

175

6

247

20

306

   Net charge-offs

$

54

46

95

130

(245)

100

(210)

   Nonaccruing loans/ Total loans

0.38%

0.38%

0.42%

0.47%

1.11%

0.38%

1.11%

   Nonperforming loans/ Total loans

0.59%

0.60%

0.67%

0.72%

1.34%

0.59%

1.34%

   Nonperforming assets/ Loans & OREO

0.60%

0.75%

0.82%

0.73%

1.36%

0.60%

1.36%

   Nonperforming assets/ Total assets

0.46%

0.56%

0.65%

0.57%

1.04%

0.46%

1.04%

   Allowance for loan loss/ Nonperforming loans

205.06%

203.96%

178.53%

163.50%

92.27%

205.06%

92.27%

   Allowance for loan loss/ Total loans

1.20%

1.23%

1.20%

1.18%

1.23%

1.20%

1.23%

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

0.03%

0.03%

0.06%

0.08%

(0.16%)

0.03%

(0.07%)

   Loan loss provision/ Net charge-offs

370.37%

0.00%

526.32%

0.00%

0.00%

200.00%

(119.05%)

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

92.12%

87.91%

95.74%

93.54%

93.29%

92.12%

93.29%

   Equity/ Assets

10.50%

10.39%

10.61%

10.76%

10.71%

10.50%

10.71%

   Tangible equity/ Tangible assets

7.05%

6.94%

7.02%

7.11%

7.02%

7.05%

7.02%

   Tangible equity adjusted for conversion

8.74%

8.62%

8.77%

8.89%

8.82%

8.74%

8.82%

END OF PERIOD BALANCES

   Total assets

$

847,668

846,848

816,005

801,800

793,163

847,668

793,163

   Total loans 

$

651,589

626,722

644,433

619,352

604,776

651,589

604,776

   Deposits

$

707,333

712,915

673,073

662,144

648,300

707,333

648,300

   Stockholders equity

$

89,031

88,028

86,548

86,263

84,950

89,031

84,950

   Goodwill & intangibles

$

16,417

16,419

16,422

16,426

16,429

16,417

16,429

   Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

   Tangible equity

$

58,631

57,626

56,143

55,854

54,538

58,631

54,538

   Mortgage servicing portfolio

$

952,364

917,435

899,710

868,783

831,781

952,364

831,781

   Wealth/Brokerage assets under care

$

407,268

404,290

378,131

375,787

367,223

407,268

367,223

   Total assets under care

$

2,207,300

2,168,573

2,093,846

2,046,370

1,992,167

2,207,300

1,992,167

   Full-time equivalent employees

237

231

227

224

223

237

223

   Period end basic shares outstanding

4,807

4,873

4,844

4,860

4,892

4,807

4,892

   Period end outstanding (Series A Converted)

1,459

1,452

1,452

1,452

1,452

1,459

1,452

AVERAGE BALANCES

   Total assets

$

852,526

827,514

814,423

796,027

784,353

840,044

772,806

   Total earning assets 

$

754,736

734,378

729,525

707,679

694,629

743,703

678,259

   Total loans 

$

644,658

637,490

634,664

614,731

596,724

641,094

582,824

   Deposits

$

717,472

683,639

672,226

650,751

644,429

700,598

630,216

   Stockholders equity

$

88,637

87,344

86,433

85,616

83,894

87,985

83,148

   Intangibles

$

16,418

16,421

16,424

16,427

16,431

16,419

16,432

   Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

   Tangible equity

$

58,236

56,940

56,026

55,206

53,480

57,583

52,733

   Average basic shares outstanding

4,827

4,859

4,846

4,874

4,893

4,839

4,894

   Average diluted shares outstanding

6,351

6,387

6,359

6,376

6,390

6,366

6,396

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Six Months Ended June 30, 2017 and 2016

($ in Thousands)

Three Months Ended Jun. 30, 2017

Three Months Ended Jun. 30, 2016

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

95,748

569

2.38%

$

82,418

392

1.90%

Nontaxable securities

14,330

202

5.62%

15,487

226

5.84%

Loans, net

644,658

7,274

4.51%

596,724

6,684

4.48%

       Total earning assets

754,736

8,045

4.26%

694,629

7,302

4.20%

Cash and due from banks

38,905

34,704

Allowance for loan losses

(7,756)

(7,429)

Premises and equipment

21,062

19,192

Other assets

45,579

43,257

      Total assets

$

852,526

$

784,353

Liabilities

Savings and interest bearing demand

$

371,352

194

0.21%

$

345,418

127

0.15%

Time deposits

219,716

669

1.22%

185,674

520

1.12%

Repurchase agreements & Other

9,728

6

0.25%

15,066

4

0.11%

Advances from Federal Home Loan Bank

15,995

63

1.58%

21,176

77

1.45%

Trust preferred securities

10,310

71

2.75%

10,310

62

2.41%

      Total interest bearing liabilities

627,101

1,003

0.64%

577,644

790

0.55%

Non interest bearing demand

126,404

-

113,337

      Total funding

753,505

0.53%

690,981

0.46%

Other liabilities

10,384

9,478

      Total liabilities

763,889

700,459

Equity

88,637

83,894

      Total liabilities and equity

$

852,526

$

784,353

Net interest income (tax equivalent basis)

$              7,042

$              6,512

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

3.73%

3.75%

Six Months Ended Jun. 30, 2017

Six Months Ended Jun. 30, 2016

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

88,363

1,030

2.33%

$

79,517

794

2.00%

Nontaxable securities

14,246

403

5.66%

15,918

462

5.80%

Loans, net

641,094

14,105

4.40%

582,824

12,958

4.45%

       Total earning assets

743,703

15,538

4.18%

678,259

14,214

4.19%

Cash and due from banks

38,285

39,001

Allowance for loan losses

(7,778)

(7,274)

Premises and equipment

20,829

19,299

Other assets

45,005

43,520

      Total assets

$

840,044

$

772,805

Liabilities

Savings and interest bearing demand

$

364,982

366

0.20%

$

341,141

240

0.14%

Time deposits

211,460

1,245

1.18%

176,485

952

1.08%

Repurchase agreements & Other

11,753

10

0.17%

15,792

9

0.11%

Advances from Federal Home Loan Bank

19,464

149

1.53%

24,113

183

1.52%

Trust preferred securities

10,310

141

2.74%

10,310

121

2.35%

      Total interest bearing liabilities

617,969

1,911

0.62%

567,841

1,505

0.53%

Non interest bearing demand

124,156

0.52%

112,590

0.44%

      Total funding

742,125

680,431

Other liabilities

9,934

9,226

      Total liabilities

752,059

689,657

Equity

87,985

83,148

      Total liabilities and equity

$

840,044

$

772,805

Net interest income (tax equivalent basis)

$            13,627

$            12,709

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

3.66%

3.75%

 

 

View original content:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-second-quarter-and-six-month-2017-results-300491917.html

SOURCE SB Financial Group, Inc.


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