SB Financial Group, Inc. Announces Second-Quarter and Six-Month 2019 Earnings

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July 23, 2019 4:30 PM EDT

DEFIANCE, Ohio, July 23, 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 second-quarter and six months ended June 30, 2019.

Second-quarter 2019 highlights over prior-year second quarter include:

  • Total assets increased to $1.03 billion, up $84.3 million, or 8.9 percent
  • Net income of $2.6 million; adjusted net income due to servicing rights impairment of $3.2 million
  • Diluted earnings per share (EPS) of $0.33; adjusted EPS of $0.40
  • Tangible book value (TBV) per share increased 8.6 percent to $15.83 per share

Six months ended June 30, 2019, highlights over prior-year six months include:

  • Net income of $4.9 million; adjusted net income of $6.0 million, which is up $0.5 million or 8.0 percent
  • Diluted EPS of $0.61; adjusted EPS of $0.75
  • Return on Average Assets (ROA) of 0.96 percent; adjusted 1.07 percent
  • Net interest margin (NIM) of 3.84 percent down 5 basis points

Second-quarter 2019, trailing twelve-month highlights include:

  • Loan growth of $61.2 million, or 8.1 percent
  • Deposit growth of $86.5 million, or 11.5 percent
  • Mortgage origination volume of $324.0 million; servicing portfolio of $1.11 billion

 

Highlights

Three Months Ended

Six Months Ended

($ in thousands, except per share & ratios)

Jun. 2019

Jun. 2018

% Change

Jun. 2019

Jun. 2018

% Change

Operating revenue 

$12,523

$12,673

-1.2%

$23,863

$24,616

-3.1%

Interest income 

11,151

9,732

14.6%

21,649

18,583

16.5%

Interest expense

2,319

1,308

77.3%

4,477

2,459

82.1%

Net interest income 

8,832

8,424

4.8%

17,172

16,124

6.5%

Provision for loan losses

200

300

-33.3%

200

600

-66.7%

Noninterest income

3,691

4,249

-13.1%

6,691

8,492

-21.2%

Noninterest expense

9,108

8,579

6.2%

17,734

17,206

3.1%

Net income 

2,627

3,107

-15.4%

4,853

5,560

-12.7%

Earnings per diluted share

0.33

0.40

-17.5%

0.61

0.75

-18.7%

Return on average assets

1.03%

1.35%

-23.7%

0.96%

1.21%

-20.7%

Return on average equity

7.92%

10.02%

-21.0%

7.36%

9.64%

-23.7%

Non-GAAP Measures

Adjusted net income

$3,172

$3,122

1.6%

$5,957

$5,514

8.0%

Adjusted diluted EPS

0.40

0.40

0.0%

0.75

0.74

1.4%

Adjusted return on average assets

1.09%

1.35%

-19.3%

1.07%

1.20%

-10.8%

Net interest margin (FTE)

3.88%

4.14%

-6.3%

3.84%

3.89%

-1.3%

"We delivered increased second-quarter net income compared to the prior-year quarter, when we adjust for the impairment to our mortgage servicing rights," said Mark A. Klein, Chairman, President and CEO of SB Financial.  Our operating results included a very strong loan growth quarter, as we added over $32 million, and over the last 12 months, $61 million.  Also, this quarter had a strong rebound in our mortgage origination volume of $98 million, increasing originations over the last 12 months to $324 million."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was down 1.2 percent from the second quarter of 2018, but up 10.4 percent from the linked quarter.

  • Net interest income was up 4.8 percent from the year-ago quarter, and up 5.9 percent from the linked quarter.
  • Net interest margin (FTE) was down 26 basis points from the year-ago quarter, but up 7 basis points from the linked quarter.
  • Noninterest income was down 13.1 percent from the year-ago quarter, but up 23.0 percent from the linked quarter.

Funding costs, primarily from retail deposits have increased from the prior year and from the linked quarter.  Deposit cost of funds for the most recent quarter of 1.01 percent are up from the prior year quarter of 0.59 percent.  From the linked quarter, deposit cost of funds are up only six basis points from 0.95 percent.

Mortgage Loan Business

Mortgage loan originations for the second quarter of 2019 were $98.4 million, down $11.0 million, or 10.1 percent, from the year-ago quarter.  Total sales of originated loans were $71.0 million, down $8.2 million, or 10.3 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 $1.2 million for the second quarter of 2019, compared to $2.3 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the second quarter of 2019 was a negative $0.7 million, compared to a negative adjustment of $0.02 million for the second quarter of 2018.  The aggregate servicing valuation impairment ended the quarter at $1.6 million.  The mortgage-servicing portfolio at June 30, 2019, was $1.11 billion, up $0.08 billion, or 8.0 percent, from $1.03 billion at June 30, 2018.

Mr. Klein noted, "Although our earnings were impacted by the $0.7 million impairment in the quarter and $1.4 million for all of 2019, we are encouraged by the strong mortgage quarter that included purchase volume of $91 million or 93 percent and refinance volume of $7 million or 7 percent.  Our current pipeline exceeds $50 million and we continue to attract targeted clients."

Mortgage Banking

($ in thousands)

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mortgage originations

$98,447

$51,417

$78,829

$95,289

$109,466

Mortgage sales

70,993

43,472

60,345

80,555

79,162

Mortgage servicing portfolio

1,112,857

1,094,060

1,084,678

1,066,402

1,030,780

Mortgage servicing rights

10,264

10,838

11,347

11,129

10,634

Mortgage servicing revenue:

Loan servicing fees

691

682

673

653

636

OMSR amortization

(460)

(254)

(300)

(318)

(367)

Net administrative fees

231

428

373

335

269

OMSR valuation adjustment

(690)

(708)

(68)

(62)

(22)

Net loan servicing fees

(459)

(280)

305

273

247

Gain on sale of mortgages

1,678

1,192

1,646

2,066

2,058

Mortgage banking revenue, net

$1,219

$912

$1,951

$2,339

$2,305

Noninterest Income and Noninterest Expense

SB Financial's noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales, title agency revenue and the sale of Small Business Administration (SBA) loans.  SBA activity for the quarter consisted of total loan volume of $4.1 million and gains of $0.1 million.  Wealth management assets under the Company's care stood at $479.4 million as of June 30, 2019.  In the first full quarter of operation, the title agency business delivered revenue of $0.3 million.  For the second quarter of 2019, noninterest income as a percentage of total revenue was 29.5 percent, with the YTD percentage at 33.9 percent when adjusted for the impairment. 

For the second quarter of 2019, noninterest expense (NIE) of $9.1 million was up $0.5 million, or 6.2 percent, compared to the same quarter last year.  Compared to the linked quarter, NIE was also up $0.5 million.  Expense growth was the result of higher mortgage commissions, merit increases and the addition of a title agency.  We continue to add resources of both technology and personnel in order to meet the expanded needs of our operations, information technology and risk management functions.

Noninterest Income / Noninterest Expense 

($ in thousands, except ratios)

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Noninterest Income (NII)

$3,691

$3,000

$3,930

$4,202

$4,249

NII / Total Revenue

29.5%

26.5%

31.3%

33.0%

33.5%

NII / Average Assets

1.5%

1.2%

1.6%

1.8%

1.8%

Noninterest Expense (NIE)

$9,108

$8,626

$8,852

$8,789

$8,579

Efficiency Ratio

72.7%

76.1%

70.6%

69.0%

67.7%

NIE / Average Assets

3.6%

3.5%

3.6%

3.7%

3.7%

Net Noninterest Expense/Avg. Assets

-2.1%

-2.3%

-2.0%

-1.9%

-1.9%

Balance Sheet

Total assets as of June 30, 2019, were $1.03 billion, up $84.3 million, or 8.9 percent, from a year ago.  Total equity as of June 30, 2019, was $133.9 million, up 7.1 percent from a year ago, and comprised 13.0 percent of total assets. 

Total loans held for investment were $814.5 million at June 30, 2019, up $61.2 million, or 8.1 percent, from June 30, 2018 and up $32.0 million or 16.4 percent annualized for the quarter.  From the prior year, commercial loans were up $28.7 million, or 24.9 percent, with residential real estate rising $18.9 million, or 10.9 percent.

The investment portfolio of $89.9 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 8.7 percent of assets at June 30, 2019.  Deposit balances of $839.4 million at June 30, 2019, increased by $86.5 million, or 11.5 percent, since June 30, 2018.  Growth from the prior year included $10.3 million in checking and $76.2 million in savings, money market and time deposit balances.

Mr. Klein stated, "Our balance sheet metrics improved this quarter with 16.4 percent annualized loan growth and $12 million in deposit growth.  Compared to the prior year, deposit growth of 11.5 percent fully funded our 8.1 percent loan growth.  Our asset quality metrics and coverage ratio remain in the top quartile of our peer group."

Loan Balance

($ in thousands, except ratios)

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Annual Growth

Commercial

$143,798

$136,201

$127,640

$119,810

$115,140

$28,658

     % of Total

17.7%

17.4%

16.5%

15.5%

15.3%

24.9%

Commercial RE

360,491

343,900

340,791

356,563

350,266

10,225

     % of Total

44.2%

43.9%

44.2%

46.2%

46.5%

2.9%

Agriculture

54,317

50,620

52,012

52,814

52,466

1,851

     % of Total

6.7%

6.5%

6.7%

6.8%

7.0%

3.5%

Residential RE

191,642

187,548

187,104

178,033

172,773

18,869

     % of Total

23.5%

24.0%

24.2%

23.1%

22.9%

10.9%

Consumer & Other

64,261

64,254

64,336

64,478

62,640

1,621

     % of Total

7.9%

8.2%

8.3%

8.4%

8.3%

2.6%

Total Loans

$814,509

$782,523

$771,883

$771,698

$753,285

$61,224

Total Growth Percentage

8.1%

Deposit Balance

($ in thousands, except ratios)

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Annual Growth

Non-Int DDA

$141,216

$146,327

$144,592

$134,747

$131,125

$10,091

     % of Total

16.8%

17.7%

18.0%

17.1%

17.4%

7.7%

Interest DDA

129,710

132,101

130,628

130,897

129,486

224

     % of Total

15.5%

16.0%

16.3%

16.6%

17.2%

0.2%

Savings

118,931

115,272

104,444

114,213

118,108

823

     % of Total

14.1%

13.8%

12.9%

14.4%

15.7%

0.7%

Money Market

175,455

175,334

181,426

170,190

151,228

24,227

     % of Total

20.9%

21.2%

22.6%

21.6%

20.1%

16.0%

Certificates

274,062

258,624

241,462

239,379

222,932

51,130

     % of Total

32.7%

31.2%

30.1%

30.3%

29.6%

22.9%

Total Deposits

$839,374

$827,658

$802,552

$789,426

$752,879

$86,495

Total Growth Percentage

11.5%

Asset Quality

SB Financial's nonperforming assets to total assets ratio of 0.43 percent continues to be in the top quartile of its 65-bank peer group.  The coverage of problem loans by the loan loss allowance was at 212 percent at June 30, 2019, down from 264 percent at June 30, 2018. 

Summary of Nonperforming Assets

Annual Growth

($ in thousands, except ratios)

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Commercial & Agriculture

$674

$998

$731

$360

$33

$641

% of Total Com./Ag. loans

0.34%

0.53%

0.41%

0.21%

0.02%

1942.4%

Commercial RE 

208

212

218

228

234

(26)

% of Total CRE loans

0.06%

0.06%

0.06%

0.06%

0.07%

-11.1%

Residential RE

1,768

1,612

1,738

1,541

1,634

134

% of Total Res. RE loans

0.92%

0.86%

0.93%

0.87%

0.95%

8.2%

Consumer & Other

456

325

219

252

221

235

% of Total Con./Oth. loans  

0.71%

0.51%

0.34%

0.39%

0.35%

106.3%

Total Nonaccruing Loans 

3,106

3,147

2,906

2,381

2,122

984

% of Total loans

0.38%

0.40%

0.38%

0.31%

0.28%

46.4%

Accruing Restructured Loans

814

827

928

940

1,101

(287)

Total Growth (%)

-26.1%

Total Nonaccruing & Restructured Loans

3,920

3,974

3,834

3,321

3,223

697

% of Total loans

0.48%

0.51%

0.50%

0.43%

0.43%

21.6%

Foreclosed Assets

530

313

131

105

16

514

Total Growth (%)

3212.5%

Total Nonperforming Assets

$4,450

$4,287

$3,965

$3,426

$3,239

$1,211

% of Total assets

0.43%

0.42%

0.40%

0.35%

0.34%

37.4%

Webcast and Conference Call

The Company will hold a related conference call and webcast on July 24, 2019, at 11:00 a.m. EDT.  Interested parties may access the conference call by dialing 1-888-338-9469.  The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html.  An audio replay of the call will be available on the SB Financial website.

About SB Financial Group    

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

In May 2019, SB Financial was ranked #94 on the American Banker Magazine's list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity ("ROE").

Forward-Looking Statements

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

Non-GAAP Financial Measures

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

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

 

SB FINANCIAL GROUP, INC.  

CONSOLIDATED BALANCE SHEETS - (Unaudited)

June

March

December

September

June

($ in thousands)

2019

2019

2018

2018

2018

ASSETS

Cash and due from banks

$       42,786

$       62,962

$       48,363

$       45,515

$       24,413

Available-for-sale securities

85,261

95,802

90,969

84,114

89,911

Loans held for sale

9,579

4,346

4,445

6,888

7,551

Loans, net of unearned income

814,509

782,523

771,883

771,698

753,285

Allowance for loan losses

(8,306)

(8,121)

(8,167)

(8,489)

(8,494)

Premises and equipment, net

23,150

23,270

22,084

21,900

21,683

Federal Reserve and FHLB Stock, at cost

4,648

4,123

4,123

4,123

3,748

Foreclosed assets held for sale, net

530

313

131

105

16

Interest receivable

3,209

3,123

2,822

2,433

2,000

Goodwill and other intangibles

17,836

17,838

16,401

16,404

16,406

Cash value of life insurance

17,051

16,966

16,834

16,745

16,656

Mortgage servicing rights

10,264

10,838

11,365

11,129

10,633

Other assets

8,606

7,288

5,575

6,615

6,977

Total assets

$  1,029,123

$  1,021,271

$     986,828

$     979,180

$     944,785

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non interest bearing demand

$     141,216

$     146,327

$     144,592

$     134,747

$     131,125

Interest bearing demand

129,710

132,101

130,628

130,897

129,486

Savings

118,931

115,272

104,444

114,213

118,108

Money market

175,455

175,334

181,426

170,190

151,228

Time deposits

274,062

258,624

241,462

239,379

222,932

Total deposits

839,374

827,658

802,552

789,426

752,879

Repurchase agreements

13,968

12,255

15,184

15,539

18,191

Federal Home Loan Bank advances

16,000

24,000

16,000

24,500

26,500

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Interest payable

1,188

1,123

909

891

685

Other liabilities

14,346

14,419

11,438

11,405

11,116

Total liabilities

895,186

889,765

856,393

852,071

819,681

Shareholders' Equity

Preferred stock

13,978

13,978

13,979

13,979

13,983

Common stock

40,486

40,486

40,485

40,485

40,481

Additional paid-in capital

15,259

15,143

15,226

15,160

15,098

Retained earnings

67,236

65,438

64,012

61,854

59,503

Accumulated other comprehensive income/(loss)

801

124

(552)

(1,654)

(1,240)

Treasury stock

(3,823)

(3,663)

(2,715)

(2,715)

(2,721)

Total equity

133,937

131,506

130,435

127,109

125,104

Total liabilities and shareholders' equity

$  1,029,123

$  1,021,271

$     986,828

$     979,180

$     944,785

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except per share & ratios)

At and for the Three Months Ended

Six Months Ended

June

March

December

September

June

June

June

Interest income

2019

2019

2018

2018

2018

2019

2018

Loans

  Taxable 

$     10,182

$        9,427

$        9,661

$        9,499

$        8,968

$        19,609

$        17,108

  Tax exempt

73

62

55

42

36

135

57

Securities

  Taxable 

802

911

822

610

613

1,713

1,186

  Tax exempt

94

98

100

107

115

192

232

Total interest income

11,151

10,498

10,638

10,258

9,732

21,649

18,583

Interest expense

Deposits

2,092

1,918

1,776

1,472

1,091

4,010

2,066

Repurchase agreements & other

17

26

10

11

6

43

16

Federal Home Loan Bank advances

100

100

131

140

110

200

189

Trust preferred securities

110

114

107

106

101

224

188

Total interest expense

2,319

2,158

2,024

1,729

1,308

4,477

2,459

Net interest income

8,832

8,340

8,614

8,529

8,424

17,172

16,124

Provision for loan losses 

200

-

-

-

300

200

600

Net interest income after provision

  for loan losses

8,632

8,340

8,614

8,529

8,124

16,972

15,524

Noninterest income

Wealth Management Fees

783

734

717

705

710

1,517

1,449

Customer service fees

689

631

679

672

675

1,320

1,319

Gain on sale of mtg. loans & OMSR

1,678

1,192

1,646

2,066

2,058

2,870

3,158

Mortgage loan servicing fees, net

(459)

(280)

305

273

247

(739)

718

Gain on sale of non-mortgage loans

216

327

295

125

150

543

810

Title insurance income

308

19

-

-

-

327

-

Net gain on sales of securities

206

-

-

70

-

206

-

Gain/(loss) on sale of assets

(5)

(2)

14

-

60

(7)

21

Other

275

379

274

291

349

654

1,017

Total noninterest income

3,691

3,000

3,930

4,202

4,249

6,691

8,492

Noninterest expense

Salaries and employee benefits

5,305

4,902

5,108

5,372

5,201

10,207

10,140

Net occupancy expense

627

645

600

588

560

1,272

1,209

Equipment expense

665

711

756

667

637

1,376

1,466

Data processing fees

488

443

466

489

418

931

856

Professional fees

649

617

532

393

504

1,266

923

Marketing expense

246

239

262

197

204

485

425

Telephone and communication

112

115

121

124

128

227

250

Postage and delivery expense

81

84

66

83

63

165

137

State, local and other taxes

247

255

180

177

176

502

362

Employee expense

236

153

283

243

220

389

386

Other expenses

452

462

478

456

468

914

1,052

Total noninterest expense

9,108

8,626

8,852

8,789

8,579

17,734

17,206

Income before income tax expense

3,215

2,714

3,692

3,942

3,794

5,929

6,810

Income tax expense

588

488

732

824

687

1,076

1,250

Net income 

$        2,627

$        2,226

$        2,960

$        3,118

$        3,107

$          4,853

$          5,560

Preferred Share Dividends 

243

244

243

244

244

487

488

Net income available to common shareholders

2,384

1,982

2,717

2,874

2,863

4,366

5,072

Common share data:

Basic earnings per common share

$          0.37

$          0.31

$          0.42

$          0.45

$          0.45

$            0.68

$            0.85

Diluted earnings per common share

$          0.33

$          0.28

$          0.37

$          0.39

$          0.40

$            0.61

$            0.75

Average shares outstanding (in thousands):

Basic:

6,454

6,482

6,503

6,503

6,489

6,469

5,935

Diluted: 

7,967

7,994

8,030

8,022

8,003

7,982

7,454

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               

($ in thousands, except per share & ratios)

At and for the Three Months Ended

Six Months Ended

June

March

December

September

June

June

June

SUMMARY OF OPERATIONS

2019

2019

2018

2018

2018

2019

2018

   Net interest income 

$        8,832

$        8,340

$        8,614

$        8,529

$        8,424

$       17,172

$       16,124

         Tax-equivalent adjustment

44

43

41

40

40

87

77

   Tax-equivalent net interest income 

8,876

8,383

8,655

8,569

8,464

17,259

16,201

   Provision for loan loss 

200

-

-

-

300

200

600

   Noninterest income

3,691

3,000

3,930

4,202

4,249

6,691

8,492

   Total operating revenue

12,523

11,340

12,544

12,731

12,673

23,863

24,616

   Noninterest expense

9,108

8,626

8,852

8,789

8,579

17,734

17,206

   Pre-tax pre-provision income

3,415

2,714

3,692

3,942

4,094

6,129

7,410

   Pretax income

3,215

2,714

3,692

3,942

3,794

5,929

6,810

   Net income 

2,627

2,226

2,960

3,118

3,107

4,853

5,560

   Income available to common shareholders 

2,384

1,982

2,717

2,874

2,863

4,366

5,072

PER SHARE INFORMATION:

   Basic earnings per share (EPS)

$          0.37

$          0.31

$          0.42

$          0.45

$          0.45

$            0.68

$            0.85

   Diluted earnings per share

0.33

0.28

0.37

0.39

0.40

0.61

0.75

   Common dividends

0.090

0.085

0.085

0.080

0.080

0.175

0.155

   Book value per common share

16.89

16.57

16.36

15.94

15.73

16.89

15.73

   Tangible book value per common share (TBV)

15.83

15.43

15.39

14.87

14.57

15.83

14.57

   Fully converted TBV per common share

14.64

14.32

14.30

13.88

13.66

14.64

13.66

   Market price per common share

16.46

18.02

16.45

20.35

20.32

16.46

20.32

   Market price per preferred share

16.10

19.00

17.90

20.25

19.82

16.10

19.82

   Market price to TBV

104.0%

116.8%

106.9%

136.8%

139.5%

104.0%

139.5%

   Market price to fully converted TBV

112.4%

125.8%

115.0%

146.6%

148.7%

112.4%

148.7%

   Market price to trailing 12 month EPS

12.1

12.6

11.0

11.5

11.2

12.1

11.2

PERFORMANCE RATIOS:

   Return on average assets (ROAA)

1.03%

0.89%

1.19%

1.30%

1.35%

0.96%

1.21%

   Pre-tax pre-provision ROAA

1.34%

1.08%

1.48%

1.64%

1.78%

1.22%

1.61%

   Return on average equity

7.92%

6.76%

9.21%

9.89%

10.02%

7.36%

9.64%

   Return on average tangible equity

10.41%

8.83%

12.06%

13.02%

13.28%

9.65%

13.08%

   Efficiency ratio 

72.71%

76.05%

70.55%

69.01%

67.67%

74.30%

69.88%

   Earning asset yield

4.88%

4.78%

4.86%

4.75%

4.76%

4.82%

4.46%

   Cost of interest bearing liabilities

1.28%

1.20%

1.15%

1.00%

0.80%

1.24%

0.75%

   Net interest margin

3.86%

3.79%

3.93%

3.95%

4.12%

3.83%

3.87%

   Tax equivalent effect

0.02%

0.02%

0.02%

0.01%

0.02%

0.01%

0.02%

   Net interest margin, tax equivalent 

3.88%

3.81%

3.95%

3.96%

4.14%

3.84%

3.89%

   Non interest income/Average assets

1.45%

1.20%

1.58%

1.75%

1.84%

1.33%

1.85%

   Non interest expense/Average assets

3.58%

3.45%

3.56%

3.65%

3.72%

3.52%

3.74%

   Net noninterest/Average assets

2.13%

2.25%

1.98%

1.91%

1.88%

2.19%

1.89%

ASSET QUALITY RATIOS:

   Gross charge-offs

$             20

$             60

$           322

$             12

$             54

$               80

$               73

   Recoveries

5

13

1

6

29

18

38

   Net charge-offs

15

47

321

6

25

62

35

   Nonaccruing loans/ Total loans

0.38%

0.40%

0.38%

0.31%

0.28%

0.38%

0.28%

   Nonperforming loans/ Total loans

0.48%

0.51%

0.50%

0.43%

0.43%

0.48%

0.43%

   Nonperforming assets/ Loans & OREO

0.55%

0.55%

0.51%

0.44%

0.43%

0.55%

0.43%

   Nonperforming assets/ Total assets

0.43%

0.42%

0.40%

0.35%

0.34%

0.43%

0.34%

   Allowance for loan loss/ Nonperforming loans

211.89%

204.35%

213.02%

255.62%

263.54%

211.89%

263.54%

   Allowance for loan loss/ Total loans

1.02%

1.04%

1.06%

1.10%

1.13%

1.02%

1.13%

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

0.01%

0.02%

0.17%

0.00%

0.01%

0.02%

0.01%

   Loan loss provision/ Net charge-offs

1333.33%

0.00%

0.00%

0.00%

1200.00%

322.58%

1714.29%

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

97.04%

94.55%

96.18%

97.75%

100.05%

97.04%

100.05%

   Equity/ Assets

13.01%

12.88%

13.22%

12.98%

13.24%

13.01%

13.24%

   Tangible equity/ Tangible assets

10.10%

9.93%

10.31%

10.05%

10.20%

10.10%

10.20%

   Tangible equity adjusted for conversion

11.48%

11.33%

11.75%

11.50%

11.71%

11.48%

11.71%

   Common equity tier 1 ratio (Bank) - 6/19 est.

13.03%

12.71%

12.57%

12.16%

11.91%

13.03%

11.91%

END OF PERIOD BALANCES

   Total assets

$1,029,123

$1,021,271

$986,828

$979,180

$944,785

$1,029,123

$944,785

   Total loans 

814,509

782,523

771,883

771,698

753,285

814,509

753,285

   Deposits

839,374

827,658

802,552

789,426

752,879

839,374

752,879

   Stockholders equity

133,937

131,506

130,435

127,109

125,104

133,937

125,104

   Goodwill & intangibles

17,836

17,838

16,401

16,404

16,406

17,836

16,406

   Preferred equity

13,978

13,978

13,979

13,979

13,983

13,978

13,983

   Tangible equity

102,123

99,690

100,055

96,726

94,715

102,123

94,715

   Mortgage servicing portfolio

1,112,857

1,094,060

1,084,678

1,066,402

1,030,780

1,112,857

1,030,780

   Wealth/Brokerage assets under care

479,442

462,580

423,289

412,218

407,592

479,442

407,592

   Total assets under care

2,621,422

2,577,911

2,494,795

2,457,800

2,383,157

2,621,422

2,383,157

   Full-time equivalent employees (actual)

250

256

250

250

241

250

241

   Period end basic shares outstanding

6,451

6,460

6,503

6,503

6,502

6,451

6,502

   Period end outstanding (Series A Converted)

1,478

1,475

1,472

1,470

1,453

1,478

1,453

   Market capitalization (all)

130,324

144,898

133,824

162,711

161,851

130,324

161,851

AVERAGE BALANCES

   Total assets

$1,016,493

$1,001,282

$994,977

$962,369

$922,355

$1,008,559

$920,024

   Total earning assets 

914,652

879,394

875,747

864,490

817,270

897,611

832,849

   Total loans 

804,716

775,280

775,060

770,948

724,710

790,080

737,544

   Deposits

827,615

812,190

803,928

769,266

739,877

819,252

745,231

   Stockholders equity

132,734

131,691

128,539

126,144

123,990

131,861

115,387

   Intangibles

17,837

16,880

16,403

16,405

16,407

17,359

16,409

   Preferred equity

13,978

13,979

13,979

13,983

13,983

13,978

13,983

   Tangible equity

100,919

100,832

98,157

95,756

93,600

100,524

84,995

   Average basic shares outstanding

6,454

6,482

6,503

6,503

6,489

6,469

5,935

   Average diluted shares outstanding

7,967

7,994

8,030

8,022

8,003

7,982

7,454

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended June 30, 2019 and 2018

($ in thousands)

Three Months Ended Jun. 30, 2019

Three Months Ended Jun. 30, 2018

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$           100,768

$                 802

3.18%

$            80,610

$                 612

3.04%

Nontaxable securities

9,168

94

4.10%

11,950

115

3.85%

Loans, net

804,716

10,255

5.10%

724,710

9,004

4.97%

       Total earning assets

914,652

11,151

4.88%

817,270

9,731

4.76%

Cash and due from banks

36,908

32,930

Allowance for loan losses

(8,232)

(8,178)

Premises and equipment

23,555

21,476

Other assets

49,610

58,857

      Total assets

$        1,016,493

$           922,355

Liabilities

Savings, MMDA and interest bearing demand

$           422,327

$                 740

0.70%

$           393,507

$                 303

0.31%

Time deposits

261,746

1,352

2.07%

214,928

788

1.47%

Repurchase agreements & other

13,645

17

0.50%

15,646

6

0.15%

Advances from Federal Home Loan Bank

16,000

100

2.50%

20,655

110

2.13%

Trust preferred securities

10,310

110

4.27%

10,310

100

3.88%

      Total interest bearing liabilities

724,028

2,319

1.28%

655,046

1,307

0.80%

Non interest bearing demand

143,542

-

131,442

-

      Total funding

867,570

1.07%

786,488

0.66%

Other liabilities

16,189

11,877

      Total liabilities

883,759

798,365

Equity

132,734

123,990

      Total liabilities and equity

$        1,016,493

$           922,355

Net interest income

$              8,832

$              8,424

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

3.86%

4.12%

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

3.88%

4.14%

 - Computed on a fully tax equivalent (FTE) basis

Six Months Ended Jun. 30, 2019

Six Months Ended Jun. 30, 2018

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$            98,203

1,713

3.49%

$            83,225

1,186

2.85%

Nontaxable securities

9,328

192

4.12%

12,080

232

3.84%

Loans, net

790,080

19,744

5.00%

737,544

17,165

4.65%

       Total earning assets

897,611

21,649

4.82%

832,849

18,583

4.46%

Cash and due from banks

41,724

27,773

Allowance for loan losses

(8,258)

(8,311)

Premises and equipment

23,536

21,855

Other assets

53,946

45,858

      Total assets

$        1,008,559

$           920,024

Liabilities

Savings, MMDA and interest bearing demand

$           422,494

$              1,462

0.69%

$           393,384

559

0.28%

Time deposits

255,734

2,548

1.99%

215,208

1,507

1.40%

Repurchase agreements & Other

15,663

43

0.55%

13,196

16

0.24%

Advances from Federal Home Loan Bank

16,133

200

2.48%

22,786

189

1.66%

Trust preferred securities

10,310

224

4.35%

10,310

188

3.65%

      Total interest bearing liabilities

720,334

4,477

1.24%

654,884

2,459

0.75%

Non interest bearing demand

141,024

1.04%

136,639

0.62%

      Total funding

861,358

791,523

Other liabilities

15,340

13,114

      Total liabilities

876,698

804,637

Equity

131,861

115,387

      Total liabilities and equity

$        1,008,559

$           920,024

Net interest income

$            17,172

$            16,124

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

3.83%

3.87%

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

3.84%

3.89%

 - Computed on a fully tax equivalent (FTE) basis

 

Non-GAAP reconciliation

 2nd Quarter 

 Year to Date 

 3 Months ended 

 3 Months ended 

 6 Months ended 

 6 Months ended 

($ in thousands, except per share & ratios)

 June 30, 2019 

 June 30, 2018 

 June 30, 2019 

 June 30, 2018 

Total Revenues

$            12,523

$            12,673

$            23,863

$            24,616

 Adjustment to remove temporary impairment*

690

22

1,398

(70)

Adjusted Total Revenues

$            13,213

$            12,695

$            25,261

$            24,546

Income before Income Taxes

$              3,215

$              3,794

$              5,929

$              6,810

 Adjustment to remove temporary impairment

690

22

1,398

(70)

Adjusted Income before Income Taxes

$              3,905

$              3,816

$              7,327

$              6,740

Provision for Income Taxes

$                 588

$                 687

$              1,076

$              1,250

 Adjustment to remove temporary impairment

145

7

294

(24)

Adjusted Provision for Income Taxes

$                 733

$                 694

$              1,370

$              1,226

Net Income

$              2,627

$              3,107

$              4,853

$              5,560

 Adjustment to remove temporary impairment

545

15

1,104

(46)

Adjusted Net Income

$              3,172

$              3,122

$              5,957

$              5,514

Diluted Earnings per Share

$                0.33

$                0.40

$                0.61

$                0.75

 Adjustment to remove temporary impairment

0.07

0.00

0.14

(0.01)

Adjusted Diluted Earnings per Share

$                0.40

$                0.40

$                0.75

$                0.74

Return on Average Assets

1.03%

1.35%

0.96%

1.21%

 Adjustment to remove temporary impairment

0.05%

0.00%

0.11%

-0.01%

Adjusted Return on Average Assets

1.09%

1.35%

1.07%

1.20%

* 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-second-quarter-and-six-month-2019-earnings-300889578.html

SOURCE SB Financial Group, Inc.


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