SB Financial Group, Inc. Announces Fourth-Quarter and Full-Year 2013 Results

Sees continued progress in expense reductions and gains in asset quality

- Full-year EPS rises 8.1 percent to $1.07 from 99 cents in 2012; fourth-quarter EPS lower on slowing mortgage origination environment

- Operating expense down 14.1 percent year over year; down 3.5 percent year-to-date

- Nonperforming assets declined to 1.1 percent of total assets; down 19.0 percent from year-end 2012

- Return on assets at 81 basis points and return on equity at 9.5 percent for full-year 2013

Jan 21, 2014, 16:15 ET from SB Financial Group, Inc.

DEFIANCE, Ohio, Jan. 21, 2014 /PRNewswire/ -- SB Financial Group, Inc. (NASDAQ: SBFG), a diversified financial services company providing full-service community banking, mortgage banking, wealth management and item processing services, today reported earnings for the fourth-quarter and full-year ended December 31, 2013.

Highlights*

Three Months Ended

Full Year

(in $000's except ratios and per share data)

 

Dec. 2013

Dec. 2012

2013

2012

Net interest income (FTE)

$ 5,096

$ 5,247

$ 21,210

$ 21,091

Noninterest income

2,949

4,648

14,046

14,845

Noninterest expense

6,199

7,212

26,511

27,484

Net income

1,224

1,524

5,205

4,814

Earnings per share

0.25

0.31

1.07

0.99

Net interest margin (FTE)

3.57%

3.72%

3.75%

3.76%

Return on assets

0.76

0.95

0.81

0.75

Return on equity

8.75

11.64

9.52

9.57

*Consolidated earnings for SB Financial include the results of the Company's Banking Group, consisting primarily of The State Bank and Trust Company ("State Bank" or the "Bank"), and the Company's data services subsidiary, Rurbanc Data Services, Inc. (dba "RDSI Banking Systems" or "RDSI").

 

"Overall, we are pleased with our 2013 financial results, which reflect a year of steady progress for SB Financial Group.  We are even more pleased with our solid positioning as we enter 2014," said Mark Klein, President and CEO of SB Financial Group.  "In the past 12 months, the Company accomplished a number of important initiatives, including rebranding the Company as SB Financial Group and strategically focusing our business efforts on our core banking competencies." 

Mr. Klein added, "We continue to make significant progress in the execution of our strategic plan -- diversifying our sources of revenue, expanding our loan portfolio, reducing our expenses and improving our asset quality. The Board expressed its confidence in management's long-term strategy for the Company by reinstating a dividend in the first quarter of 2013.  We continue to believe our strategic plan will allow us to become a top-quartile performing financial services company in the coming years."

RESULTS OF OPERATIONS

Consolidated Revenue

Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was down 18.7 percent from the fourth quarter of 2012 and 1.9 percent for the full year.

  • Net interest income (FTE) was down 2.9 percent for the fourth quarter and up 0.1 percent for the full year
  • Net interest margin (FTE) was down 15 basis points for the fourth quarter and flat for the full year
  • Noninterest income was down $1.7 million, or 36.6 percent, for the fourth quarter, and $0.8 million, or 5.4 percent, for the full year 

Mr. Klein commented, "Two significant external factors affected revenue in 2013.  The first was the decline in yields on the loan portfolio, reflecting the general interest rate environment, which was partially offset by lower funding costs.  Secondly, mortgage originations declined across the country as the year progressed, largely due to the increase in prevailing interest rates and the shift away from a 'refinance' mindset. In the fourth quarter, SB Financial had a 28.1 percent decline in mortgage originations from the linked quarter.  Despite the shift in the refinance market, we continue to be successful in acquiring market share from competitors that are stepping away from mortgage origination."

Mortgage Loan Business

Mortgage loan originations declined $53.9 million, or 57.6 percent, for the fourth quarter, and declined $83.8 million, or 25.2 percent, for the year.

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $6.3 million for 2013, compared to $6.4 million for 2012. The mortgage servicing valuation adjustment for 2013 was ($0.02) million, compared to $0.2 million for the linked quarter. The mortgage servicing portfolio at year-end 2013 was $606.0 million, up $77.9 million, or 14.8 percent, from year-end 2012.

Mortgage Banking ($000's)

Three Months Ended

Dec. 2013

Sep. 2013

Jun. 2013

Mar. 2013

Dec. 2012

Mortgage originations

$  39,679

$  55,192

$  81,945

$  71,967

$  93,619

Mortgage sales

33,921

58,101

67,050

68,431

93,993

Mortgage servicing portfolio

605,993

597,030

575,091

548,493

528,086

Mortgage servicing rights

5,180

5,076

4,613

4,068

3,775

Mortgage servicing revenue:

Loan servicing fees

388

367

350

338

319

OMSR amortization

(126)

(164)

(205)

(330)

(362)

Net administrative fees

262

203

145

8

(43)

OMSR valuation adjustment

(21)

205

273

171

195

Net loan servicing fees

241

408

418

179

152

Gain on sale of mortgages

776

1,356

1,450

1,484

2,136

Mortgage banking revenue, net

$1,017

$1,764

$1,868

$1,663

$2,288

 

Fee Income

SB Financial's fee income includes revenue from a diversity of services, such as wealth management, deposit fees and income from bank-owned life insurance.  Wealth management increased by 13.7 percent for the fourth quarter as assets under management, which stood at $345.5 million at year-end 2013, grew by $30.3 million, or 9.6 percent, from year-end 2012. Full-year wealth management revenue rose by $0.15 million, or 6.1 percent.

Gross revenue generated by RDSI, including services provided to SB Financial and State Bank, was $2.3 million for 2013. Net data services fees, excluding SB Financial and State Bank intercompany transactions, were $1.5 million in 2013, down $1.0 million from 2012.

Data Services  ($000's)

 

Dec. 2013

Sep. 2013

Jun. 2013

Mar. 2013

Dec. 2012

Data Processing & Network Services

$      -

$  104

$  207

$  270

$  179

Payment Solutions

376

403

493

484

549

Vendor Settlement

-

-

-

-

334

RDSI Gross Revenue

376

507

700

754

1,062

Less: Intercompany

(81)

(174)

(242)

(340)

(251)

     Net Data Services Fees

$  295

$  333

$  458

$  414

$  811

     Core Data Service Fees

$  295

$  333

$  458

$  414

$  477

 

Loan Loss Provision

The loan loss provision was immaterial in the fourth quarter of 2013 and $0.9 million for the full year.  Asset quality metrics included a 19.0 percent decline in non-accruing and restructured loans, and a 30.1 percent reduction in full-year net charge-offs compared with 2012.  The loan loss reserve at year-end 2013 was 1.5 percent of total loans, providing 105.8 percent coverage of nonperforming loans; this compares to reserve coverage of 103.8 percent at year-end 2012.

Noninterest Expense

For the fourth quarter of 2013, noninterest expense was down $1.0 million, or 14.1 percent, compared to the fourth quarter of 2012 and was down 3.5 percent for the full year.  FDIC insurance premiums were down 34.9 percent, a reflection of State Bank's improved risk profile.

"We made a number of strategic decisions during the past year to reduce our expense levels. We closed a branch, made changes to our benefit programs and implemented several efficiency measures.  We expect these changes should continue to improve our profitability going forward," stated Mr. Klein.

Balance Sheet

Total assets as of December 31, 2013, were $631.8 million, down 1.0 percent from year-end 2012.  Total deposits as of December 31, 2013, were $518.2 million, down 1.7 percent from year-end 2012.

Total loans held for investment (HFI) were $477.3 million at December 31, 2013, up 3.0 percent from year-end 2012.  Residential real estate loans accounted for the majority of growth, up $11.8 million, or 13.4 percent. Commercial and commercial real estate loans rose $7.8 million, or 2.8 percent, for the full year.

Mr. Klein stated, "We are pleased with our loan growth over the past year, and we are encouraged by the additional opportunities we are seeing across our markets.  We believe that as a regionally focused bank we are well positioned to capture successfully these new business opportunities.  In particular, our commercial loan growth rose in the latter part of the year, as we continued to focus on targeted marketing efforts.  Approximately $3.8 million of the full-year growth in commercial loans came in the fourth quarter."

Loan Portfolio ($000's)

Dec. 2013

Sep. 2013

Jun. 2013

Mar. 2013

Dec. 2012

Variance YOY

Commercial

$  85,368

$  81,571

$  84,766

$  80,431

$  81,491

$   3,877

                            % of Total

17.9%

17.2%

18.3%

17.7%

17.6%

4.8%

Commercial RE

205,301

209,739

199,795

199,615

201,392

3,909

                            % of Total

43.0%

44.1%

43.1%

43.8%

43.5%

1.9%

Agriculture

39,210

39,636

38,552

37,950

42,276

(3,066)

                            % of Total

8.2%

8.3%

8.3%

8.3%

9.1%

(7.3%)

Residential RE

99,620

96,477

93,292

89,669

87,859

11,761

                            % of Total

20.9%

20.3%

20.1%

19.7%

19.0%

13.4%

Consumer & Other

47,804

47,810

47,630

47,778

50,371

(2,567)

                            % of Total

10.0%

10.1%

10.3%

10.5%

10.9%

(5.1%)

                        Total Loans

$477,303

$475,233

$464,035

$455,443

$463,389

$ 13,914

Total Growth Percentage

3.0%

 

Asset Quality

SB Financial continues to improve its asset quality, reporting nonperforming assets of $7.2 million at year-end 2013, declining by $1.7 million, or 19.0 percent, from year-end 2012.  Delinquency levels have declined, with the 30-89 day category totaling $0.9 million at the end of the 2013, compared to $2.6 million at year-end 2012. 

Summary of Nonperforming Assets ($000's)

Nonperforming Loan Category

Dec. 2013

Sep. 2013

Jun. 2013

Mar. 2013

Dec. 2012

Commercial

$    2,316

$    2,738

$    982

$  1,135

$  1,246

          % of Total Commercial loans

2.7%

3.4%

1.2%

1.4%

1.5%

Commercial RE loans

532

642

519

457

782

                      % of Total CRE loans

0.3%

0.3%

0.3%

0.2%

0.4%

Agriculture

-

-

-

-

-

                        % of Total Ag loans

-

-

-

-

-

Residential RE

1,651

1,837

2,285

2,614

2,631

                % of Total Res. RE loans

1.7%

1.9%

2.5%

2.9%

3.0%

Consumer & Other

345

363

600

605

646

        % of Consumer & Other loans

0.7%

0.8%

1.3%

1.3%

1.3%

Total Nonaccruing Loans

4,844

5,580

4,386

4,811

5,305

                             % of Total Loans

1.0%

1.2%

1.0%

1.0%

1.1%

         Accruing Restructured Loans

1,739

1,756

1,262

1,273

1,258

Total Nonaccruing & Restructured

$  6,583

$  7,336

$  5,648

$  6,084

$  6,563

                             % of Total Loans

1.4%

1.5%

1.2%

1.3%

1.4%

OREO & Repossessed Vehicles

651

1,430

1,955

2,270

2,367

Total Nonperforming Assets

$  7,233

$  8,766

$  7,603

$  8,354

$  8,930

                            % of Total Assets

1.1%

1.4%

1.2%

1.3%

1.4%

 

Capitalization

Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 63 basis points over the past year and stood at 6.3 percent as of December 31, 2013. All bank regulatory ratios remain in excess of "well-capitalized" levels. At December 31, 2013, State Bank's Total Risk-Based Capital was estimated to be $60.8 million, $22.0 million above the "well-capitalized" level. The Total Risk-Based Capital Ratio is estimated at 12.6 percent.

About SB Financial Group

Based in Defiance, Ohio, SB Financial Group, Inc. is a financial services holding company with two wholly-owned operating subsidiaries: State Bank and RDSI Banking Systems (RDSI). State Bank operates through 17 banking centers in seven Northwestern Ohio counties, and one banking center in Fort Wayne, Indiana; and three loan production offices: two in Columbus, Ohio and one in Angola, Indiana. State Bank offers a full range of financial services for consumers and small businesses, including wealth management, mortgage banking, commercial and agricultural lending. RDSI provides item processing services to community banks located in the Midwest. The Company's common stock is listed on the NASDAQ Global Market under the symbol SBFG.

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, insurance and mortgage industries, competitive factors specific to markets in which SB Financial Group and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors. Additional factors that could cause results to differ from those described above can be found in the Company's Annual Report on Form 10-K and documents subsequently filed by SB Financial Group with the Securities and Exchange Commission.  Forward-looking statements speak only as of the date on which they are made, and SB Financial Group 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 Group 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 providing certain non-GAAP financial measures provides investors with information useful in understanding the Company's financial performance, its performance trends and financial position. Specifically, SB Financial Group provides measures based on "core operating earnings," which excludes merger, integration and restructuring expenses that are not reflective of on-going operations or not expected to recur. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.

 

 

SB FINANCIAL GROUP, INC.  & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - (Unaudited)

December

September

June

March

December

($ in Thousands)

2013

2013

2013

2013

2012

ASSETS

Cash and due from banks

$

13,137

$

19,016

$

10,750

$

28,031

$

19,144

Securities available for sale, at fair value

89,793

86,620

95,379

98,390

98,702

Other securities - FRB and FHLB Stock

3,748

3,748

3,748

3,748

3,748

Total investment securities

93,541

90,368

99,127

102,138

102,450

Loans held for sale

3,366

2,407

10,715

8,560

6,147

Loans, net of unearned income

477,303

475,233

464,035

455,443

463,389

Allowance for loan losses

(6,964)

(7,120)

(7,013)

(6,992)

(6,811)

Net loans

470,339

468,113

457,022

448,451

456,578

Premises and equipment, net

12,213

12,399

12,483

12,738

12,633

Purchased software

394

320

289

300

330

Cash surrender value of life insurance

12,906

12,826

12,742

12,659

12,577

Goodwill

16,353

16,353

16,353

16,353

16,353

Core deposits and other intangibles

655

784

913

1,066

1,219

Foreclosed assets held for sale, net

651

1,430

1,955

2,270

2,367

Mortgage servicing rights

5,180

5,076

4,613

4,068

3,775

Accrued interest receivable

1,281

1,694

1,575

1,618

1,235

Other assets

1,738

2,626

2,955

3,048

3,426

Total assets

$

631,754

$

633,412

$

631,492

$

641,300

$

638,234

LIABILITIES AND EQUITY

Deposits

Non interest bearing demand

$

81,570

$

78,217

$

76,355

$

79,579

$

77,799

Interest bearing demand

119,551

124,860

118,957

123,748

117,289

Savings

61,652

61,899

61,513

62,404

57,461

Money market

79,902

78,406

78,487

81,130

80,381

Time deposits

175,559

178,161

176,066

185,398

194,071

Total deposits

518,234

521,543

511,378

532,259

527,001

Notes payable

589

680

1,148

1,424

1,702

Advances from Federal Home Loan Bank

16,000

16,000

30,000

17,500

21,000

Repurchase agreements

14,696

14,836

9,314

10,983

10,333

Trust preferred securities

20,620

20,620

20,620

20,620

20,620

Accrued interest payable

639

448

715

515

138

Other liabilities

4,707

3,748

3,930

3,704

4,156

Total liabilities

575,485

577,875

577,105

587,005

584,950

Equity

Preferred stock

-

-

-

-

-

Common stock 

12,569

12,569

12,569

12,569

12,569

Additional paid-in capital

15,412

15,399

15,392

15,381

15,374

Retained earnings

29,899

28,846

27,648

26,476

25,280

Accumulated other comprehensive income

74

415

496

1,623

1,830

Treasury stock

(1,685)

(1,692)

(1,718)

(1,754)

(1,769)

Total equity

56,269

55,537

54,387

54,295

53,284

Total liabilities and equity

$

631,754

$

633,412

$

631,492

$

641,300

$

638,234

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except share data)

Three Months Ended

Twelve Months Ended

December

September

June

March

December

December

December

Interest income

2013

2013

2013

2013

2012

2013

2012

Loans

  Taxable 

$

5,428

5,649

5,874

$

5,883

$

5,840

$

22,834

$

23,911

  Nontaxable

13

14

16

24

22

67

90

Securities

  Taxable 

313

305

296

330

330

1,244

1,515

  Nontaxable

181

178

174

170

157

703

606

Total interest income

5,935

6,146

6,360

6,407

6,349

24,848

26,122

Interest expense

Deposits

513

539

573

606

653

2,231

2,969

Other borrowings

10

11

12

14

15

47

64

Repurchase Agreements

4

2

3

2

3

11

142

Federal Home Loan Bank advances

82

83

84

90

92

339

333

Trust preferred securities

330

336

338

403

431

1,407

1,882

Total interest expense

939

971

1,010

1,115

1,194

4,035

5,390

Net interest income

4,996

5,175

5,350

5,292

5,155

20,813

20,732

Provision for loan losses 

-

401

200

299

400

900

1,350

Net interest income after provision

  for loan losses

4,996

4,774

5,150

4,993

4,755

19,913

19,382

Noninterest income

Wealth Management Fees

689

669

652

643

606

2,653

2,501

Customer service fees

673

659

639

616

648

2,587

2,624

Gain on sale of mtg. loans & OMSR's

776

1,356

1,450

1,484

2,136

5,066

6,284

Mortgage loan servicing fees, net

241

408

418

179

152

1,246

124

Gain on sale of non-mortgage loans

303

44

82

156

94

585

264

Data service fees

295

333

458

414

811

1,500

2,515

Net gain on sales of securities

-

28

-

20

-

48

-

Gain/(loss) on sale/disposal of assets

(265)

15

(129)

(105)

(54)

(484)

(311)

Other income

237

198

250

160

255

845

844

Total non-interest income

2,949

3,710

3,820

3,567

4,648

14,046

14,845

Noninterest expense

Salaries and employee benefits

3,027

3,343

3,688

3,439

3,825

13,497

14,518

Net occupancy expense

494

507

513

541

494

2,055

2,085

Equipment expense

651

701

703

755

692

2,810

2,837

FDIC insurance expense

108

98

94

109

100

409

628

Fixed asset and software impairment

-

-

-

-

65

-

65

Data processing fees

254

189

194

77

132

714

469

Professional fees

443

456

499

429

686

1,827

1,912

Marketing expense

136

135

92

108

115

471

393

Printing and office supplies

55

49

151

46

46

301

230

Telephone and communication

110

156

158

158

146

582

580

Postage and delivery expense

173

199

209

215

204

796

856

State, local and other taxes

138

140

138

134

136

550

502

Employee expense

154

125

126

152

113

557

456

Intangible amortization expense

129

129

153

153

158

564

630

OREO Impairment

-

-

-

33

-

33

58

Other expenses

327

335

362

321

300

1,345

1,265

Total non-interest expense

6,199

6,562

7,080

6,670

7,212

26,511

27,484

Income before income tax expense

1,746

1,922

1,890

1,890

2,191

7,448

6,743

Income tax expense 

522

578

571

572

667

2,243

1,929

Net income 

$

1,224

1,344

1,319

$

1,318

$

1,524

$

5,205

$

4,814

Common share data:

Basic earnings per common share

$

0.25

0.28

0.27

$

0.27

$

0.31

$

1.07

$

0.99

Diluted earnings per common share

$

0.25

0.28

0.27

$

0.27

$

0.31

$

1.07

$

0.99

Average shares outstanding ($ in thousands):

Basic:

4,870

4,867

4,866

4,863

4,862

4,866

4,862

Diluted: 

4,882

4,881

4,870

4,870

4,862

4,878

4,862

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share data)

Three Months Ended

Twelve Months Ended

December

September

June

March

December

December

December

SUMMARY OF OPERATIONS

2013

2013

2013

2013

2012

2013

2012

   Net interest income 

$

4,996

5,175

5,350

5,292

5,155

20,813

20,732

         Tax-equivalent adjustment

$

100

99

98

100

92

397

359

   Tax-equivalent net interest income 

$

5,096

5,274

5,448

5,392

5,247

21,210

21,091

   Provision for loan loss 

$

-

401

200

299

400

900

1,350

   Noninterest income

$

2,949

3,710

3,820

3,567

4,648

14,046

14,845

   Total revenue, tax-equivalent

$

8,045

8,984

9,268

8,959

9,895

35,256

35,936

   Noninterest expense

$

6,199

6,562

7,080

6,670

7,212

26,511

27,484

   Pre provision pretax income

$

1,746

2,323

2,090

2,189

2,591

8,348

8,093

   Pretax income

$

1,746

1,922

1,890

1,890

2,191

7,448

6,743

   Net income 

$

1,224

1,344

1,319

1,318

1,524

5,205

4,814

PER SHARE INFORMATION:

   Basic & diluted earnings per share

$

0.25

0.28

0.27

0.27

0.31

1.07

0.99

   Common dividends

$

0.035

0.03

0.055

-

-

0.12

-

   Book value per common share

$

11.55

11.42

11.17

11.16

10.96

11.55

10.96

   Tangible book value per common share

$

7.98

7.83

7.57

7.52

7.28

7.98

7.28

PERFORMANCE RATIOS:

   Return on average assets 

0.76%

0.84%

0.82%

0.83%

0.95%

0.81%

0.75%

   Return on average common equity

8.75%

9.82%

9.70%

9.82%

11.64%

9.52%

9.57%

   Return on avg. tangible common equity

12.71%

14.43%

14.35%

14.68%

17.73%

14.03%

15.00%

   Efficiency ratio 

76.40%

72.40%

75.54%

73.56%

71.96%

74.43%

75.48%

   Earning asset yield

4.31%

4.40%

4.58%

4.65%

4.50%

4.43%

4.72%

   Cost of interest bearing liabilities

0.76%

0.79%

0.81%

0.90%

0.96%

0.81%

1.07%

   Net interest margin

3.50%

3.65%

3.79%

3.78%

3.65%

3.68%

3.70%

   Tax equivalent effect

0.07%

0.07%

0.07%

0.08%

0.07%

0.07%

0.06%

   Net interest margin - fully tax equivalent basis 

3.57%

3.72%

3.86%

3.86%

3.72%

3.75%

3.76%

ASSET QUALITY RATIOS:

   Gross charge-offs

$

163

307

213

136

300

819

1,328

   Recoveries

$

7

13

34

18

15

72

260

   Net charge-offs

$

156

294

179

118

285

747

1,068

   Nonaccruing loans/ Total loans

1.01%

2.21%

0.95%

1.06%

1.14%

1.01%

1.14%

   Nonperforming loans/ Total loans

1.38%

2.58%

1.22%

1.34%

1.42%

1.38%

1.42%

   Nonperforming assets/ Loans & OREO

1.51%

2.87%

1.63%

1.83%

1.92%

1.51%

1.92%

   Nonperforming assets/ Total assets

1.14%

2.16%

1.20%

1.30%

1.40%

1.14%

1.40%

   Allowance for loan loss/ Nonperforming loans

105.8%

58.2%

124.2%

114.9%

103.8%

105.80%

103.8%

   Allowance for loan loss/ Total loans

1.46%

1.50%

1.51%

1.54%

1.47%

1.46%

1.47%

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

0.13%

0.25%

0.15%

0.10%

0.25%

0.16%

0.23%

   Loan loss provision/ Net charge-offs

0.00%

136.39%

111.73%

253.39%

140.56%

120.48%

126.40%

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

92.10%

91.12%

90.74%

85.57%

87.93%

92.10%

87.93%

   Equity/ Assets

8.91%

8.77%

8.61%

8.47%

8.35%

8.91%

8.35%

   Tangible equity/ Tangible assets

6.33%

6.18%

6.00%

5.87%

5.70%

6.33%

5.70%

END OF PERIOD BALANCES

   Total loans 

$

477,303

475,233

464,035

455,443

463,389

477,303

463,389

   Total assets

$

631,754

633,412

631,492

641,300

638,234

631,754

638,234

   Deposits

$

518,234

521,543

511,378

532,259

527,001

518,234

527,001

   Stockholders equity

$

56,269

55,537

54,387

54,295

53,284

56,269

53,284

   Intangibles

$

17,402

17,457

17,555

17,719

17,902

17,402

17,902

   Tangible equity

$

38,867

38,080

36,832

36,576

35,382

38,867

35,382

   Full-time equivalent employees

200

196

198

204

204

200

204

   Period end basic shares outstanding

4,870

4,864

4,867

4,863

4,862

4,870

4,862

AVERAGE BALANCES

   Total loans 

$

479,701

474,349

464,105

459,988

455,705

469,603

455,516

   Total earning assets 

$

571,332

567,787

564,050

559,383

564,564

565,390

560,858

   Total assets

$

645,148

636,437

640,382

638,801

639,048

639,920

638,035

   Deposits

$

525,334

516,669

520,259

524,901

522,970

521,648

522,412

   Stockholders equity

$

55,925

54,758

54,398

53,711

52,351

54,700

50,300

   Intangibles

$

17,404

17,504

17,633

17,810

17,968

17,590

18,217

   Tangible equity

$

38,521

37,254

36,765

35,901

34,383

37,110

32,083

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three and Twelve Months Ended December 31, 2013 and 2012

($ in Thousands)

Three Months Ended December 31, 2013

Three Months Ended December 31, 2012

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

73,306

313

1.71%

$

84,945

330

1.56%

Non-taxable securities

18,325

274

5.99%

15,985

238

5.96%

Federal funds sold

-

-

     N/A

-

-

     N/A

Loans, net

479,701

5,448

4.54%

463,635

5,873

5.07%

       Total earning assets

571,332

6,035

4.23%

564,565

6,441

4.56%

Cash and due from banks

22,369

18,185

Allowance for loan losses

(7,075)

(6,842)

Premises and equipment

13,811

15,344

Other assets

44,711

47,595

      Total assets

$

645,148

$

638,847

Liabilities

Savings and interest-bearing demand

$

265,258

18

0.03%

$

247,866

44

0.07%

Time deposits

176,609

495

1.12%

198,657

608

1.23%

Repurchase agreements

15,131

4

0.11%

11,711

3

0.10%

Advances from FHLB

16,000

82

2.05%

18,245

92

2.03%

Junior subordinated debentures

20,620

330

6.40%

20,620

419

8.13%

Notes payable & other borrowed funds

634

10

6.31%

1,791

27

6.03%

      Total interest-bearing liabilities

494,252

939

0.76%

498,890

1,194

0.96%

Non interest-bearing demand

83,467

76,447

Other liabilities

11,504

11,159

      Total liabilities

589,223

586,496

Equity

55,925

52,351

      Total liabilities and equity

$

645,148

$

638,847

Net interest income (tax equivalent basis)

$              5,096

$              5,247

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

3.57%

3.72%

Twelve Months Ended December 31, 2013

Twelve Months Ended December 31, 2012

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

78,520

1,244

1.58%

$

90,182

1,515

1.68%

Non-taxable securities

17,267

1,065

6.17%

15,160

919

6.06%

Federal funds sold

-

-

     N/A

-

-

     N/A

Loans, net

469,603

22,936

4.88%

455,516

24,047

5.28%

       Total earning assets

565,390

25,245

4.47%

560,858

26,481

4.72%

Cash and due from banks

20,827

20,728

Allowance for loan losses

(6,962)

(6,591)

Premises and equipment

14,635

15,360

Other assets

46,030

47,680

      Total assets

$

639,920

$

638,035

Liabilities

Savings and interest-bearing demand

$

262,954

75

0.03%

$

245,528

210

0.09%

Time deposits

180,154

2,156

1.20%

206,135

2,759

1.34%

Repurchase agreements

12,011

11

0.09%

15,180

142

0.94%

Advances from FHLB

18,551

339

1.83%

15,547

333

2.14%

Junior subordinated debentures

20,620

1,407

6.82%

20,620

1,815

8.80%

Notes payable & other borrowed funds

1,074

47

4.38%

2,058

131

6.36%

      Total interest-bearing liabilities

495,364

4,035

0.81%

505,067

5,390

1.07%

Non interest-bearing demand

78,540

70,749

Other liabilities

11,316

11,919

      Total liabilities

585,220

587,735

Equity

54,700

50,300

      Total liabilities and equity

$

639,920

$

638,035

Net interest income (tax equivalent basis)

$            21,210

$            21,091

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

3.75%

3.76%

 

SOURCE SB Financial Group, Inc.