SB Financial Group, Inc. Announces Third-Quarter and Nine-Month 2017 Results

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Year-to-date earnings per share growth of 9.9% and loan growth of 9%

October 19, 2017 4:16 PM EDT

DEFIANCE, Ohio, Oct. 19, 2017 /PRNewswire/ -- SB Financial Group, Inc. (NASDAQ: SBFG) ("SB Financial" or the "Company"), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, item and statement processing services, today reported earnings for the third-quarter and nine-months ended September 30, 2017.

Third-quarter 2017 highlights over prior-year third quarter include:

  • Net income of $2.7 million, an increase of 6.9 percent, or $0.2 million
  • Return on average assets of 1.27 percent
  • Diluted earnings per share (EPS) of $0.43, an increase of 7.5 percent, or $0.03 per share
  • Mortgage origination volume of $89.2 million, a decrease of 23.9 percent, or $28.0 million from $117.2 million

Nine-months ended September 30, 2017 highlights over prior-year nine months include:

  • Net income of $7.0 million, an increase of 8.8 percent, or $0.6 million
  • Return on average assets of 1.11 percent
  • Diluted earnings per share (EPS) of $1.11, an increase of 9.9 percent, or $0.10 per share

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

  • Loan growth of $55.7 million, or 9.0 percent vs. $78.5 million, or 14.5 percent
  • Deposit growth of $54.7 million, or 9.0 percent vs. $88.6 million, or 15.4 percent
  • Servicing portfolio of $979.3 million, up 12.7 percent, or $110.5 million
  • Diluted earnings per share (EPS) of $1.48, an increase of 13.8 percent, or $0.18 per share

 

Highlights

Three Months Ended

  Nine Months Ended

($000's except ratios and share data)

Sep. 2017

Sep. 2016

% Change

Sep. 2017

Sep. 2016

% Change

Operating revenue

$ 12,124

$ 11,686

3.8%

$ 33,857

$ 31,967

5.9%

Interest income

8,338

7,499

11.2

23,718

21,539

10.1

Interest expense

1,075

828

29.8

2,986

2,333

28.0

Net interest income

7,263

6,671

8.9

20,732

19,206

7.9

Noninterest income

4,861

5,015

(3.1)

13,125

12,761

2.9

Noninterest expense

8,284

7,930

4.5

23,472

22,232

5.6

Net income

2,723

2,547

6.9

7,033

6,467

8.8

Earnings per diluted share

0.43

0.40

7.5

1.11

1.01

9.9

Net interest margin (FTE)

3.81%

3.82%

(0.0)

3.71%

3.77%

(1.6)

Return on average assets

1.27%

1.28%

(0.8)

1.11%

1.10%

0.1

Return on average equity

12.11%

11.90%

1.8

10.57%

10.27%

2.9

"We are encouraged to report a nearly 7 percent increase in earnings for the third quarter, coupled with improved asset quality and 9 percent loan growth," said Mark A. Klein, Chairman, President and CEO of SB Financial.  "Despite a softer residential mortgage origination market, we achieved success with higher loan growth, SBA gains and controlled expenses."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 3.8 percent from the third quarter of 2016, and up 6.1 percent from the linked quarter.

  • Net interest income was up 8.9 percent from the year-ago quarter, and up 4.3 percent from the linked quarter.
  • Net interest margin (FTE) was down 1 basis point from the year-ago quarter, but up 8 basis points from the linked quarter.
  • Noninterest income was down 3.1 percent from the year-ago quarter, but up 8.9 percent from the linked quarter.
  • Total revenue for the first nine months of 2017 was $33.9 million compared to $32.0 million for the first nine months of 2016, which is a 6.0 percent increase.

Mortgage Loan Business

Mortgage loan originations for the third quarter of 2017 were $89.2 million, down $28.0 million, or 23.9 percent, from the year-ago quarter.  Total sales of originated loans were $76.9 million, down $24.2 million, or 24.0 percent from the year-ago quarter.

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.4 million for the third quarter of 2017, compared to $2.7 million for the year-ago quarter, or a 9.9 percent decrease.  The mortgage servicing valuation adjustment for the third quarter 2017 was a negative $0.04 million, compared to a positive adjustment of $0.07 million for the third quarter of 2016.  The aggregate servicing valuation impairment ended the quarter at $0.3 million.  The mortgage-servicing portfolio at September 30, 2017, was $979.3 million, up $110.5 million, or 12.7 percent, from $868.8 million at September 30, 2016.

Mr. Klein noted, "Mortgage originations were down from the prior year and linked quarter due to lower market activity reflecting the limited availability of inventory.  We were able to improve profitability from the linked quarter with better pricing and pipeline management.  Again this quarter, 95 percent of our volume was from new clients to the Company."

Mortgage Banking ($000's)

Sep. 2017

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Mortgage originations

$  89,217

$  97,804

$  56,667

$  83,469

$  117,209

Mortgage sales

76,919

80,038

50,473

81,689

101,147

Mortgage servicing portfolio

979,251

952,364

917,435

899,710

868,783

Mortgage servicing rights

9,560

9,217

8,727

8,422

6,887

 

Mortgage servicing revenue:

Loan servicing fees

605

583

566

553

531

OMSR amortization

(343)

(303)

(218)

(462)

(397)

Net administrative fees

262

280

348

91

134

OMSR valuation adjustment

(35)

(39)

35

1,233

71

Net loan servicing fees

227

241

383

1,324

205

Gain on sale of mortgages

2,211

2,063

1,250

2,002

2,503

Mortgage banking revenue, net

$2,438

$2,304

$1,633

$3,326

$2,708

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 $4.1 million and gains of $0.2 million.  Wealth management assets under the Company's care stood at $429.8 million as of September 30, 2017.  Noninterest income as a percentage of total revenue was 40.1 percent. 

For the third quarter of 2017, noninterest expense (NIE) of $8.3 million, was up $0.4 million, or 4.5 percent, compared to the same quarter last year.  The increase was due mainly to staffing increases and higher marketing costs.  Compared to the linked quarter, NIE was up $0.5 million, or 6.1 percent.

Mr. Klein stated, "Fee income continues to be a strength, with 39 percent of total revenue for the year.  SBA and wealth management have increased their contribution offsetting the slowdown in residential mortgage." 

Noninterest Income / Noninterest Expense

($000's)

Sep. 2017

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Noninterest Income (NII)

$ 4,861

$ 4,462

$ 3,802

$ 5,128

$ 5,015

NII / Total Revenue

40.1%

39.1%

36.9%

43.6%

42.9%

NII / Average Assets

2.3%

2.1%

1.8%

2.5%

2.5%

Noninterest Expense (NIE)

$ 8,284

$ 7,806

$ 7,382

$ 7,859

$ 7,930

Efficiency Ratio

68.3%

68.3%

71.6%

66.7%

67.8%

NIE / Average Assets

3.9%

3.7%

3.6%

3.9%

4.0%

Net Noninterest Expense

(1.6)

(1.6)

(1.7)

(1.3)

(1.5)

Balance Sheet

Total assets as of September 30, 2017, were $860.5 million, up $58.7 million, or 7.3 percent, from a year ago.  Total equity as of September 30, 2017, was $90.9 million, up 5.4 percent from a year ago, and was at 10.6 percent of total assets. 

Total loans held for investment were $675.1 million at September 30, 2017, up $55.7 million, or 9.0 percent, from September 30, 2016.  Commercial real estate loans were up $51.4 million, or 19.1 percent, and accounted for the majority of the total loan growth.  Commercial (C&I) also rose $3.5 million, or 3.4 percent, from the prior period.

The investment portfolio of $89.1 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 10.3 percent of assets at September 30, 2017, and was down 7.7 percent from the year-ago period.  Deposit balances of $716.8 million at September 30, 2017, increased by $54.7 million, or 8.3 percent, since September 30, 2016.  Growth from the prior year included $2.6 million in checking and $52.1 million in savings and time deposit balances.

"Loan growth was strong for the quarter, up nearly $23 million, a 14 percent annualized rate," said Mr. Klein.  "Most importantly we were able to fund the bulk of our year-over-year loan growth with retail deposit balances."

Loan Portfolio ($000's)

Sep. 2017

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Variance YOY

Commercial

$ 104,723

$ 107,319

$ 102,392

$ 109,087

$ 101,245

$ 3,478

% of Total

15.5%

16.5%

16.4%

16.9%

16.4%

3.4%

Commercial RE

319,764

296,116

282,951

284,084

268,408

51,356

% of Total

47.4%

45.4%

45.1%

44.1%

43.3%

19.1%

Agriculture

51,140

52,107

47,580

52,475

54,609

(3,469)

% of Total

7.8%

8.0%

7.6%

8.2%

8.8%

(6.4%)

Residential RE

141,296

137,214

136,762

142,452

139,757

1,539

% of Total

20.9%

21.1%

21.8%

22.1%

22.6%

1.1%

Consumer & Other

58,152

58,833

57,037

56,335

55,333

2,819

% of Total

8.6%

9.0%

9.1%

8.7%

8.9%

5.1%

Total Loans

$675,075

$651,589

$626,722

$644,433

$619,352

$ 55,723

Total Growth Percentage

9.0%

 

 

 

Deposit Bal. ($000's)

Sep. 2017

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Variance YOY

Non-Int DDA

$ 124,840

$ 124,213

$ 124,664

$ 125,189

$ 116,976

$ 7,864

% of Total

17.4%

17.6%

17.5%

18.6%

17.7%

6.7%

Interest DDA

130,513

127,409

133,388

131,598

135,729

(5,216)

% of Total

18.2%

18.0%

18.7%

19.5%

20.5%

(3.8%)

Savings

103,530

104,720

103,901

95,594

89,265

14,265

% of Total

14.4%

14.8%

14.6%

14.2%

13.5%

16.0%

Money Market

140,647

130,987

138,915

122,976

126,501

14,146

% of Total

19.6%

18.5%

19.5%

18.3%

19.1%

11.2%

Certificates

217,277

220,004

212,047

197,716

193,673

23,604

% of Total

30.3%

31.1%

29.7%

29.4%

29.3%

12.2%

Total Deposits

$716,807

$707,333

$712,915

$673,073

$662,144

$ 54,663

Total Growth Percentage

8.3%

Asset Quality

SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $3.7 million as of September 30, 2017, down $0.8 million, or 18.0 percent, from the year-ago quarter.  SB Financial's nonperforming assets to total assets ratio of 0.43 percent is down from 0.57 percent at September 30, 2016.  The coverage of problem loans by the loan loss allowance was at 213.3 percent at September 30, 2017, up from the 163.5 percent at September 30, 2016.

Summary of Nonperforming Assets ($000's)

Nonperforming Category

Sep. 2017

Jun. 2017

Mar. 2017

Dec. 2016

Sep. 2016

Variance YOY

Commercial & Agriculture

$ 125

$ 132

$ 187

$ 194

$ 151

$(26)

% of Total Com./Ag. loans

0.08%

0.08%

0.13%

0.12%

0.10%

(17.2%)

Commercial RE

1,029

1,049

939

1,194

1,393

(364)

% of Total CRE loans

0.32%

0.35%

0.33%

0.42%

0.52%

(26.1%)

Residential RE

1,074

1,115

1,126

1,162

1,152

(78)

% of Total Res. RE loans

0.76%

0.81%

0.82%

0.82%

0.82%

(6.8%)

Consumer & Other

153

154

130

187

193

(40)

% of Total Con./Oth. loans 

0.26%

0.26%

0.23%

0.33%

0.35%

(20.7%)

Total Nonaccruing Loans

2,381

2,450

2,382

2,737

2,889

(508)

% of Total loans

0.35%

0.38%

0.38%

0.43%

0.47%

(17.6%)

Accruing Restructured Loans

1,258

1,366

1,383

1,590

1,588

 

Total Nonaccruing & Restructured Loans

$ 3,639

$ 3,816

$ 3,765

$ 4,327

$ 4,477

$ (838)

% of Total loans

0.54%

0.59%

0.60%

0.67%

0.72%

(18.7%)

Foreclosed Assets

94

94

950

994

73

 

Total Nonperforming Assets

$ 3,733

$ 3,910

$ 4,715

$ 5,321

$ 4,550

$ (817)

% of Total assets

0.43%

0.46%

0.56%

0.65%

0.57%

(18.0%)

 

"The quarter saw a reduction in our nonperforming ratio to just 43 basis points," said Mr. Klein.  "With net charge-offs for the year of $165,000, our asset quality continues to be at the top of our peer group."

Webcast and Conference Call

The Company will hold a related conference call and webcast on October 20, 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)

September

June

March

December

September

($ in Thousands)

2017

2017

2017

2016

2016

ASSETS

Cash and due from banks

$

28,258

21,385

45,740

17,012

25,167

Securities available for sale, at fair value

85,304

103,347

107,937

90,129

92,689

Other securities - FRB and FHLB Stock

3,748

3,748

3,748

3,748

3,748

Total investment securities

89,052

107,095

111,685

93,877

96,437

Loans held for sale

7,663

9,437

5,104

4,434

5,865

Loans, net of unearned income

675,075

651,589

626,722

644,433

619,352

Allowance for loan losses

(7,760)

(7,825)

(7,679)

(7,725)

(7,320)

Net loans

667,315

643,764

619,043

636,708

612,032

Premises, equipment and software, net

21,271

20,740

19,909

19,129

18,673

Cash surrender value of life insurance

13,692

13,859

13,791

13,725

13,653

Goodwill & other intangibles

16,414

16,417

16,419

16,422

16,426

Foreclosed assets held for sale, net

94

94

950

994

73

Mortgage servicing rights

9,560

9,217

8,727

8,422

6,887

Accrued interest receivable

1,880

1,411

1,462

1,512

1,641

Other assets

5,263

4,249

4,018

3,770

4,946

Total assets

$

860,462

847,668

846,848

816,005

801,800

LIABILITIES AND EQUITY

Deposits

Non interest bearing demand

$

124,840

124,213

124,664

125,189

116,976

Interest bearing demand

130,513

127,409

133,388

131,598

135,729

Savings deposits

103,530

104,720

103,901

95,594

89,265

Money market deposits

140,647

130,987

138,915

122,976

126,501

Time deposits

217,277

220,004

212,047

197,716

193,673

Total deposits

716,807

707,333

712,915

673,073

662,144

Advances from Federal Home Loan Bank

20,500

20,500

15,500

26,500

23,000

Repurchase agreements

11,343

11,175

11,796

10,532

11,363

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Accrued interest payable

611

563

450

408

427

Other liabilities

9,982

8,756

7,849

8,634

8,293

Total liabilities

769,553

758,637

758,820

729,457

715,537

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

15,335

15,260

15,224

15,362

15,370

Retained earnings

51,991

49,851

48,118

46,688

44,933

Accumulated other comprehensive income

335

340

136

51

1,237

Treasury shares

(3,304)

(2,972)

(2,002)

(2,105)

(1,829)

Total equity

90,909

89,031

88,028

86,548

86,263

Total liabilities and equity

$

860,462

847,668

846,848

816,005

801,800

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands - except share data)

At and for the Three Months Ended

Nine Months Ended

September

June

March

December

September

September

September

Interest income

2017

2017

2017

2016

2016

2017

2016

Loans

  Taxable 

$

7,653

7,243

6,800

6,984

6,954

21,696

19,862

  Nontaxable

21

21

20

20

22

62

55

Securities

  Taxable 

532

569

461

364

378

1,562

1,172

  Nontaxable

132

133

133

144

145

398

450

Total interest income

8,338

7,966

7,414

7,512

7,499

23,718

21,539

Interest expense

Deposits

907

863

748

709

677

2,518

1,869

Repurchase Agreements & Other

4

2

4

2

5

10

14

Federal Home Loan Bank advances

86

63

86

86

83

235

266

Trust preferred securities

78

75

70

68

63

223

184

Total interest expense

1,075

1,003

908

865

828

2,986

2,333

Net interest income

7,263

6,963

6,506

6,647

6,671

20,732

19,206

Provision for loan losses 

-

200

-

500

-

200

250

Net interest income after provision

  for loan losses

7,263

6,763

6,506

6,147

6,671

20,532

18,956

Noninterest income

Wealth Management Fees

688

704

667

657

695

2,059

1,971

Customer service fees

674

667

640

653

692

1,981

2,052

Gain on sale of mtg. loans & OMSR's

2,211

2,063

1,250

2,002

2,503

5,524

6,170

Mortgage loan servicing fees, net

227

241

383

1,324

205

851

(514)

Gain on sale of non-mortgage loans

294

369

430

52

327

1,093

927

Data service fees

182

184

193

184

223

559

733

Net gain on sales of securities

119

-

-

-

59

119

262

Gain/(loss) on sale/disposal of assets

8

8

2

-

(31)

18

177

Other income

458

226

237

256

342

921

983

Total non-interest income

4,861

4,462

3,802

5,128

5,015

13,125

12,761

Noninterest expense

Salaries and employee benefits

4,844

4,667

4,386

4,656

4,672

13,897

12,765

Net occupancy expense

566

552

560

533

523

1,678

1,612

Equipment expense

688

683

641

735

649

2,012

1,883

Data processing fees

429

396

370

384

352

1,195

996

Professional fees

502

417

363

404

380

1,282

1,022

Marketing expense

180

206

195

154

123

581

493

Telephone and communication

120

113

116

111

101

349

302

Postage and delivery expense

103

59

174

148

154

336

513

State, local and other taxes

198

170

167

154

170

535

440

Employee expense

242

183

145

182

117

570

363

Other expenses

412

360

265

398

689

1,037

1,843

Total non-interest expense

8,284

7,806

7,382

7,859

7,930

23,472

22,232

Income before income tax expense

3,840

3,419

2,926

3,416

3,756

10,185

9,485

Income tax expense 

1,117

1,102

933

1,098

1,209

3,152

3,018

Net income 

$

2,723

2,317

1,993

2,317

2,547

7,033

6,467

Preferred Share Dividends 

244

244

244

244

244

731

731

Net income available to common shares

2,479

2,073

1,749

2,073

2,303

6,302

5,736

Common share data:

Basic earnings per common share

$

0.52

0.43

0.36

0.43

0.47

1.31

1.17

Diluted earnings per common share

$

0.43

0.37

0.31

0.37

0.40

1.11

1.01

Average shares outstanding ($ in thousands):

Basic:

4,797

4,827

4,859

4,846

4,874

4,825

4,888

Diluted: 

6,326

6,351

6,387

6,359

6,376

6,356

6,384

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               

($ in thousands, except per share data)

At and for the Three Months Ended

Nine Months Ended

September

June

March

December

September

September

September

SUMMARY OF OPERATIONS

2017

2017

2017

2016

2016

2017

2016

   Net interest income 

$

7,263

6,963

6,506

6,647

6,671

20,732

19,206

         Tax-equivalent adjustment

$

79

79

79

84

86

237

260

   Tax-equivalent net interest income 

$

7,342

7,042

6,585

6,731

6,757

20,969

19,466

   Provision for loan loss 

$

-

200

-

500

-

200

250

   Noninterest income

$

4,861

4,462

3,802

5,128

5,015

13,125

12,761

   Total operating revenue

$

12,124

11,425

10,308

11,775

11,686

33,857

31,967

   Noninterest expense

$

8,284

7,806

7,382

7,859

7,930

23,472

22,232

   Pre-tax pre-provision income

$

3,840

3,619

2,926

3,916

3,756

10,385

9,735

   Pretax income

$

3,840

3,419

2,926

3,416

3,756

10,185

9,485

   Net income 

$

2,723

2,317

1,993

2,317

2,547

7,033

6,467

   Income available to common shareholders 

$

2,479

2,073

1,749

2,073

2,303

6,302

5,736

PER SHARE INFORMATION:

   Basic earnings per share

$

0.52

0.43

0.36

0.43

0.47

1.31

1.17

   Diluted earnings per share

$

0.43

0.37

0.31

0.37

0.40

1.11

1.01

   Common dividends

$

0.070

0.070

0.065

0.065

0.060

0.205

0.175

   Book value per common share

$

14.55

14.21

13.92

13.75

13.67

14.55

13.67

   Tangible book value per common share

$

12.64

12.20

11.83

11.59

11.49

12.64

11.49

   Market price per common share

$

17.16

16.88

16.72

16.05

12.53

17.16

12.53

   Market price per preferred share

$

16.45

16.89

16.85

15.85

13.50

16.45

13.50

PERFORMANCE RATIOS:

   Return on average assets (ROAA)

1.27%

1.09%

0.96%

1.14%

1.28%

1.11%

1.10%

   Pre-tax pre-provision ROAA

1.79%

1.70%

1.41%

1.92%

1.89%

1.64%

1.66%

   Return on average equity

12.11%

10.46%

9.13%

10.72%

11.90%

10.57%

10.27%

   Return on average tangible equity

18.28%

15.91%

14.00%

16.54%

18.45%

16.09%

16.10%

   Efficiency ratio 

68.30%

68.30%

71.59%

66.71%

67.83%

69.33%

69.52%

   Earning asset yield

4.36%

4.26%

4.08%

4.17%

4.29%

4.24%

4.22%

   Cost of interest bearing liabilities

0.68%

0.64%

0.60%

0.58%

0.56%

0.64%

0.54%

   Net interest margin

3.77%

3.69%

3.55%

3.64%

3.77%

3.67%

3.72%

   Tax equivalent effect

0.04%

0.04%

0.04%

0.05%

0.05%

0.04%

0.05%

   Net interest margin, tax equivalent 

3.81%

3.73%

3.59%

3.69%

3.82%

3.71%

3.77%

   Non interest income/Average assets

2.27%

2.09%

1.84%

2.52%

2.52%

2.07%

2.18%

   Non interest expense/Average assets

3.87%

3.66%

3.57%

3.86%

3.98%

3.70%

3.80%

   Net noninterest expense/Average assets

1.60%

1.57%

1.73%

1.34%

1.46%

1.63%

1.62%

ASSET QUALITY RATIOS:

   Gross charge-offs

$

75

69

51

269

136

195

232

   Recoveries

$

10

15

5

175

6

30

312

   Net charge-offs

$

65

54

46

95

130

165

(80)

   Nonaccruing loans/ Total loans

0.35%

0.38%

0.38%

0.42%

0.47%

0.35%

0.47%

   Nonperforming loans/ Total loans

0.54%

0.59%

0.60%

0.67%

0.72%

0.54%

0.72%

   Nonperforming assets/ Loans & OREO

0.55%

0.60%

0.75%

0.82%

0.73%

0.55%

0.73%

   Nonperforming assets/ Total assets

0.43%

0.46%

0.56%

0.65%

0.57%

0.43%

0.57%

   Allowance for loan loss/ Nonperforming loans

213.25%

205.06%

203.96%

178.53%

163.50%

213.25%

163.50%

   Allowance for loan loss/ Total loans

1.15%

1.20%

1.23%

1.20%

1.18%

1.15%

1.18%

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

0.04%

0.03%

0.03%

0.06%

0.08%

0.03%

(0.02%)

   Loan loss provision/ Net charge-offs

0.00%

370.37%

0.00%

526.32%

0.00%

121.21%

(312.50%)

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

94.18%

92.12%

87.91%

95.74%

93.54%

94.18%

93.54%

   Equity/ Assets

10.57%

10.50%

10.39%

10.61%

10.76%

10.57%

10.76%

   Tangible equity/ Tangible assets

7.17%

7.05%

6.94%

7.02%

7.11%

7.17%

7.11%

   Tangible equity adjusted for conversion

8.83%

8.74%

8.62%

8.77%

8.89%

8.83%

8.89%

END OF PERIOD BALANCES

   Total assets

$

860,462

847,668

846,848

816,005

801,800

860,462

801,800

   Total loans 

$

675,075

651,589

626,722

644,433

619,352

675,075

619,352

   Deposits

$

716,807

707,333

712,915

673,073

662,144

716,807

662,144

   Stockholders equity

$

90,909

89,031

88,028

86,548

86,263

90,909

86,263

   Goodwill & intangibles

$

16,414

16,417

16,419

16,422

16,426

16,414

16,426

   Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

   Tangible equity

$

60,512

58,631

57,626

56,143

55,854

60,512

55,854

   Mortgage servicing portfolio

$

979,251

952,364

917,435

899,710

868,783

979,251

868,783

   Wealth/Brokerage assets under care

$

429,777

407,268

404,290

378,131

375,787

429,777

375,787

   Total assets under care

$

2,269,490

2,207,300

2,168,573

2,093,846

2,046,370

2,269,490

2,046,370

   Full-time equivalent employees

237

237

231

227

224

237

224

   Period end basic shares outstanding

4,788

4,807

4,873

4,844

4,860

4,788

4,860

   Period end outstanding (Series A Converted)

1,461

1,459

1,452

1,452

1,452

1,461

1,452

AVERAGE BALANCES

   Total assets

$

857,147

852,526

827,514

814,423

796,027

845,836

780,583

   Total earning assets 

$

771,722

754,736

734,378

729,525

707,679

752,753

688,139

   Total loans 

$

667,943

644,658

637,490

634,664

614,731

650,142

593,538

   Deposits

$

712,614

717,472

683,639

672,226

650,751

704,638

637,055

   Stockholders equity

$

89,974

88,637

87,344

86,433

85,616

88,676

83,955

   Intangibles

$

16,415

16,418

16,421

16,424

16,427

16,418

16,431

   Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

   Tangible equity

$

59,576

58,236

56,940

56,026

55,206

58,275

53,541

   Average basic shares outstanding

4,797

4,827

4,859

4,846

4,874

4,825

4,888

   Average diluted shares outstanding

6,326

6,351

6,387

6,359

6,376

6,356

6,384

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three and Nine Months Ended September 30, 2017 and 2016

($ in Thousands)

Three Months Ended Sep. 30, 2017

Three Months Ended Sep. 30, 2016

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

89,512

532

2.38%

$

78,174

378

1.93%

Nontaxable securities

14,267

200

5.61%

14,774

220

5.95%

Loans, net

667,943

7,685

4.60%

614,731

6,987

4.55%

       Total earning assets

771,722

8,417

4.36%

707,679

7,585

4.29%

Cash and due from banks

25,011

32,760

Allowance for loan losses

(7,914)

(7,494)

Premises and equipment

21,243

18,921

Other assets

47,085

44,161

      Total assets

$

857,147

$

796,027

Liabilities

Savings and interest bearing demand

$

368,080

210

0.23%

$

348,944

141

0.16%

Time deposits

218,561

697

1.28%

188,768

536

1.14%

Repurchase agreements & Other

12,655

4

0.13%

17,046

5

0.12%

Advances from Federal Home Loan Bank

20,772

86

1.66%

23,000

83

1.44%

Trust preferred securities

10,310

78

3.03%

10,310

63

2.44%

      Total interest bearing liabilities

630,378

1,075

0.68%

588,068

828

0.56%

Non interest bearing demand

125,973

-

113,039

-

      Total funding

756,351

0.57%

701,107

0.47%

Other liabilities

10,822

9,304

      Total liabilities

767,173

710,411

Equity

89,974

85,616

      Total liabilities and equity

$

857,147

$

796,027

Net interest income (tax equivalent basis)

$              7,342

$              6,757

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

3.81%

3.82%

Nine Months Ended Sep. 30, 2017

Nine Months Ended Sep. 30, 2016

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

88,358

1,562

2.36%

$

78,683

1,172

1.99%

Nontaxable securities

14,253

603

5.64%

15,918

682

5.71%

Loans, net

650,142

21,790

4.47%

593,538

19,945

4.48%

       Total earning assets

752,753

23,955

4.24%

688,139

21,799

4.22%

Cash and due from banks

34,204

36,905

Allowance for loan losses

(7,824)

(7,348)

Premises and equipment

20,969

19,172

Other assets

45,734

43,715

      Total assets

$

845,836

$

780,583

Liabilities

Savings and interest bearing demand

$

366,026

576

0.21%

$

343,761

381

0.15%

Time deposits

213,853

1,942

1.21%

180,609

1,488

1.10%

Repurchase agreements & Other

12,057

10

0.11%

16,213

14

0.12%

Advances from Federal Home Loan Bank

19,905

235

1.57%

23,379

266

1.52%

Trust preferred securities

10,310

223

2.88%

10,310

184

2.38%

      Total interest bearing liabilities

622,151

2,986

0.64%

574,272

2,333

0.54%

Non interest bearing demand

124,759

0.53%

112,685

0.45%

      Total funding

746,910

686,957

Other liabilities

10,250

9,671

      Total liabilities

757,160

696,628

Equity

88,676

83,955

      Total liabilities and equity

$

845,836

$

780,583

Net interest income (tax equivalent basis)

$            20,969

$            19,466

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

3.71%

3.77%

 

 

View original content:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-third-quarter-and-nine-month-2017-results-300540078.html

SOURCE SB Financial Group, Inc.


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