SB Financial Group, Inc. Announces Fourth-Quarter and Full-Year 2015 Results

23% year-over-year GAAP earnings growth and 8% loan growth

Jan 21, 2016, 16:15 ET from SB Financial Group, Inc.

DEFIANCE, Ohio, Jan. 21, 2016 /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 fourth quarter and twelve months ended December 31, 2015.

Fourth-quarter 2015 highlights over prior year fourth quarter include:

  • GAAP net income of $1.9 million, an increase of 22.6 percent
  • Return on average assets of 1.02 percent, up from 0.89 percent
  • Loan growth from third quarter of $16.8 million, or 3.1 percent
  • Fully tax equivalent (FTE) revenue up 11.7 percent
  • Net interest margin (FTE) of 3.76 percent up 3 basis points
  • Mortgage origination volume of $67.1 million, up $15.1 million, or 29.0 percent
  • Positive operating leverage for the Company; expenses up 7.5 percent

Full-year 2015 highlights over the prior-year period include:

  • GAAP net income of $7.6 million, an increase of 44.8 percent
  • Diluted earnings per share of $1.19, an increase of 11.3 percent
  • Return on average assets of 1.06 percent, up from 0.78 percent
  • Loan growth up $41.3 million, or 8.0 percent
  • Total revenue (FTE) up 15.5 percent
  • Total operating expense up 3.7 percent
  • Positive operating leverage of 4.2 times

 

Highlights

     Three Months Ended


                Full Year


($000's except ratios and share data)








Dec. 2015

Dec. 2014

% Change

Dec. 2015

Dec. 2014

% Change

Operating revenue (FTE)

$ 9,784

$ 8,763

11.7%

$39,426

$34,143

15.5%

Interest income (FTE)

6,714

6,284

6.8

26,303

24,796

6.1

Interest expense

646

685

(5.7)

2,584

3,480

(25.8)

Net interest income (FTE)

6,068

5,599

8.4

23,719

21,316

11.3

Noninterest income

3,716

3,164

17.4

15,707

12,827

22.4

Noninterest expense

6,839

6,364

7.5

26,927

25,957

3.7

Net income

1,868

1,524

22.6

7,619

5,263

44.8

Net income available to common

1,624

1,524

6.6

6,663

5,263

26.6

Earnings per diluted share

0.29

0.30

(3.3)

1.19

1.07

11.3

Net interest margin (FTE)

3.76%

3.73%

0.8

3.78%

3.62%

4.4

Return on assets

1.02%

0.89%

14.6

1.06%

0.78%

35.9

Return on equity

9.23%

9.40%

(1.8)

9.69%

8.74%

10.9
















"I am extremely pleased to report our strong operating results for the fourth quarter of 2015," said Mark Klein, Chairman, President and CEO of SB Financial.  "For 2015, our fully diluted earnings of $1.19 per share is up 11.3 percent.  We had $17 million of loan growth for the quarter and for the full year, we were up $41 million, or 8 percent.  Additionally, we successfully opened our new full-service location in Dublin, Ohio, as well as our purchase of a future full-service location in Bowling Green, Ohio."

RESULTS OF OPERATIONS

Consolidated Revenue

Total revenue, consisting of net interest income (FTE) and noninterest income, was up 11.7 percent from the fourth quarter of 2014, but down 3.3 percent from the linked quarter.

  • Net interest income (FTE) was up 8.4 percent for the fourth quarter, but down 1.6 percent compared to the linked quarter.
  • Net interest margin (FTE) was up 3 basis points for the fourth quarter, but down 11 basis points from the linked quarter.
  • Noninterest income was up 17.4 percent for the fourth quarter, but down 6.0 percent from the linked quarter.
  • Total revenue (FTE), for the full year of 2015 was $39.4 million compared to $34.1 million for the full year of 2014, which is a 15.5 percent increase. The increase was due to higher mortgage volume of $103 million and Small Business Administration Loan (SBA) sale gains of $0.56 million.

Mortgage Loan Business

Mortgage loan originations for the fourth quarter of 2015 were $67.1 million, up $15.1 million, or 29.0 percent, from the year-ago fourth quarter.  For the year, originations are $322.7 million, up $102.9 million or 49.0 percent.  Total sales of originated loans are up 55.2 percent to $270.5 million for the year.

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.76 million for the fourth quarter of 2015, compared to $1.05 million for the year-ago quarter or a 67.6 percent improvement.  The mortgage servicing valuation adjustment for the  fourth-quarter 2015 was a positive $0.06 million.  The aggregate servicing valuation impairment ended the quarter at $0.30 million.  The mortgage servicing portfolio at December 31, 2015, was $772.5 million, up $109.9 million, or 16.6 percent, from $662.7 million at December 31, 2014.

Mr. Klein noted, "The fourth quarter represented another quarter of solid mortgage production with a total of $67 million; a 29 percent increase from the prior year.  This quarter, our new money production accounted for 86 percent of our volume, and our gain on sale was a healthy 1.66 percent.  Our 2015 production volume represented our second highest year ever, and, since we began in 2006 we have originated nearly $2 billion in residential production."

Mortgage Banking ($000's)



Dec. 2015

Sep. 2015

Jun. 2015

Mar. 2015

Dec. 2014

Mortgage originations

$  67,149

$  86,965

$  93,605

$  74,955

$  52,058

Mortgage sales

56,302

70,081

79,806

64,360

43,542

Mortgage servicing portfolio

772,533

750,958

723,100

684,390

662,662

Mortgage servicing rights

7,152

6,798

6,548

5,860

5,704







Mortgage servicing revenue:






Loan servicing fees

476

459

438

420

410

OMSR amortization

(157)

(223)

(219)

(282)

(174)

Net administrative fees

319

236

219

138

236

OMSR valuation adjustment

64

(138)

268

(80)

(193)

Net loan servicing fees

383

98

487

58

43

Gain on sale of mortgages

1,372

1,687

1,805

1,400

1,003

Mortgage banking revenue, net

$1,755

$1,785

$2,292

$1,458

$1,046


Fee Income and Noninterest Expense

SB Financial's fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and income from bank-owned life insurance.  Wealth management assets under management stood at $315.6 million as of December 31, 2015.  For the fourth quarter of 2015, fee income as a percentage of total revenue was 38.3 percent and 40.2 percent for the full year.  

For the fourth quarter of 2015, noninterest expense (NIE) was up $0.5 million, or 7.5 percent, compared to the same quarter last year.  Compared to the linked quarter, NIE was up $0.2 million, or 3.2 percent.  For the full year, noninterest expense was up $1.0 million, or 3.7 percent.

Mr. Klein stated, "Total fee income, while slightly down from the linked quarter, still represented more than 38 percent of total revenue.  We are especially pleased with our mortgage production, and with the growing traction from our SBA lending group, which increased loan-sale-gains by 240 percent on a year over year basis." 

Fee Income / Noninterest Expense

($000's)


Dec. 2015

Jun. 2015

Jun. 2015

Mar. 2015

Dec. 2014

Fee Income

$ 3,716

$ 3,952

$ 4,443

$ 3,596

$ 3,164

Fee Income / Total Revenue

38.3%

39.4%

43.5%

39.4%

36.5%

Fee Income / Average Assets

2.0%

2.2%

2.5%

2.0%

1.8%







Noninterest Expense

$ 6,839

$ 6,626

$ 6,818

$ 6,644

$ 6,364

Efficiency Ratio

70.2%

65.6%

66.3%

72.2%

72.8%

NIE / Average Assets

3.7%

3.7%

3.8%

3.7%

3.7%







Balance Sheet

Total assets as of December 31, 2015, were $733.1 million, up 7.1 percent from a year ago.  Total equity as of December 31, 2015, was $81.2 million, up 7.3 percent from a year ago. 

Total loans held for investment were $557.7 million at December 31, 2015, up $41.3 million, or 8.0 percent, from December 31, 2014.  Commercial real estate loans accounted for the majority of growth, up $25.2 million, or 11.6 percent.  Residential real estate and consumer loans also rose $17.6 million and $2.7 million, or 15.5 percent and 5.2 percent, respectively.

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $93.5 million represented 12.8 percent of assets at December 31, 2015, and was up 5.1 percent from a year ago.  Deposit balances of $586.5 million at December 31, 2015, increased by $35.5 million, or 6.45 percent, since December 31, 2014.  Growth from the prior year included $20.7 million in checking and $14.8 million in savings and time deposit balances.

Mr. Klein said, "Loan volume accelerated this quarter, as we had balance growth from the linked quarter of $16.8 million, or 12 percent annualized.  Nonperforming assets were down slightly from the linked quarter, but up compared to the prior year due to the impact of a commercial real estate credit that has been periodically delinquent over the past year."

Loan Portfolio ($000's)

Dec. 2015

Sep. 2015

Jun. 2015

Mar. 2015

Dec. 2014

Variance
YOY

Commercial

$  86,542

$  83,741

$  84,297

$  85,022

$  88,329

$ (1,787)

% of Total

15.5%

15.5%

16.0%

16.6%

17.1%

(2.0%)

Commercial RE

242,208

231,249

223,994

217,610

217,030

25,178

% of Total

43.4%

42.8%

42.9%

42.5%

42.0%

11.6%

Agriculture

43,835

46,102

45,724

44,266

46,217

(2,382)

% of Total

7.9%

8.5%

8.8%

8.7%

9.0%

(5.2%)

Residential RE

130,806

126,840

116,944

114,702

113,214

17,592

% of Total

23.5%

23.5%

22.4%

22.4%

21.9%

15.5%

Consumer & Other

54,224

52,957

51,444

50,184

51,546

2,678

% of Total

9.7%

9.7%

9.9%

9.8%

10.0%

5.2%








Total Loans

$557,659

$540,889

$522,403

$511,784

$516,336

$ 41,323

Total Growth Percentage






8.0%















Deposit Bal. ($000's)

Dec. 2015

Sep. 2015

Jun. 2015

Mar. 2015

Dec. 2014

Variance
YOY

Non-Int DDA

$ 113,113

$ 102,460

$  96,322

$  96,638

$  97,853

$ 15,257

% of Total

19.3%

17.9%

17.1%

16.7%

17.8%

15.6%

Interest DDA

126,443

126,816

127,362

133,145

121,043

5,400

% of Total

21.6%

22.1%

22.6%

23.0%

22.0%

4.5%

Savings

83,407

77,809

78,729

75,445

64,107

19,300

% of Total

14.2%

13.6%

14.0%

13.1%

11.6%

30.1%

Money Market

104,412

107,538

100,315

106,325

104,602

(190)

% of Total

17.8%

18.7%

17.8%

18.4%

19.0%

(0.2%)

Certificates

159,038

158,945

160,198

166,730

163,301

(4,263)

% of Total

27.1%

27.7%

28.5%

28.8%

29.6%

(2.6%)








Total Deposits

$586,453

$573,568

$562,926

$578,283

$550,906

$ 35,547

Total Growth Percentage






6.45%











Asset Quality

SB Financial continues to maintain above peer median asset quality, reporting nonperforming assets of $8.5 million as of December 31, 2015, up $2.2 million, or 34.3 percent, from the year-ago quarter.  Compared to the linked quarter, total NPA's were down 0.9 percent.  The increase from the prior year was the result of an existing delinquent commercial real estate credit that has moved to foreclosure.  The Company feels the valuation of the property will approximate the loan commitment when the situation is resolved.  SB Financial's 1.15 percent of nonperforming assets to total assets remains near the top quartile in its 65-bank peer group.  The coverage of problem loans by the loan loss allowance was 85.8 percent at December 31, 2015, down from the 113.0 percent at December 31, 2014.

Summary of Nonperforming Assets ($000's)









Nonperforming Category

Dec. 2015

Sep. 2015

Jun. 2015

Mar. 2015

Dec. 2014

Variance
YOY

Commercial & Agriculture

$ 196

$ 453

$702

$ 1,413

$ 1,387

$(1,191)

% of Total Com. & Ag. loans

0.15%

0.35%

0.54%

1.09%

1.03%

(85.9%)

Commercial RE

5,670

5,393

2,023

1,932

2,092

3,578

% of Total CRE loans

2.34%

2.33%

0.90%

0.89%

0.96%

171.0%

Residential RE

749

795

772

967

992

(243)

% of Total Res. RE loans

0.57%

0.63%

0.66%

0.84%

0.88%

(24.5%)

Consumer & Other

32

101

112

138

138

(106)

% of Total Cons. & Oth. loans 

0.06%

0.20%

0.22%

0.28%

0.27%

(76.8%)

Total Nonaccruing Loans

6,646

6,742

3,609

4,450

4,609

2,037

% of Total Loans

1.19%

1.25%

0.69%

0.87%

0.93%

44.2%

Accruing Restructured Loans

1,500

1,576

1,595

1,524

1,384


Total Nonaccruing &
Restructured Loans

$ 8,146

$ 8,318

$ 5,204

$ 5,974

$  5,993

$ 2,153

% of Total Loans

1.46%

1.54%

1.00%

1.17%

1.16 %

35.9%

Foreclosed Assets

286

188

180

207

285


Total Nonperforming Assets

$ 8,432

$ 8,506

$ 5,384

$ 6,181

$  6,278

$ 2,154

% of Total Assets

1.15%

1.18%

0.76%

0.86%

0.92%

34.3%

Webcast and Conference Call

The Company will hold a related conference call and webcast on January 22, 2015, at 11:00 a.m. EST.  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 wholly-owned operating subsidiaries: State Bank and RDSI. State Bank provides a full range of financial services for consumers and small businesses, including wealth management, mortgage banking and commercial and agricultural lending, operating through 18 banking centers in nine Ohio counties and one center in Fort Wayne, Indiana, with 22 full service ATMs.  The Company has four loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan.  RDSI provides item processing 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 2015, SB Financial was ranked #163 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") as of December 31, 2014.

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 providing certain non-GAAP financial measures provides 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)





















December


September


June


March


December





($ in Thousands)


2015


2015


2015


2015


2014

















ASSETS













Cash and due from banks

$

20,459


18,372


21,709


49,765


28,197


















Securities available for sale, at fair value


89,789


95,482


98,786


94,056


85,240



Other securities - FRB and FHLB Stock


3,748


3,748


3,748


3,748


3,748



















Total investment securities


93,537


99,230


102,534


97,804


88,988


















Loans held for sale


7,516


8,517


10,067


8,667


5,168


















Loans, net of unearned income


557,659


540,889


522,403


511,784


516,336



Allowance for loan losses


(6,990)


(7,076)


(7,006)


(6,830)


(6,771)



















Net loans


550,669


533,813


515,397


504,954


509,565


















Premises, equipment and software, net


19,010


17,619


16,432


15,407


13,604



Cash surrender value of life insurance


13,437


13,364


13,291


13,219


13,148



Goodwill


16,353


16,353


16,353


16,353


16,353



Core deposits and other intangibles


82


120


174


229


283



Foreclosed assets held for sale, net


286


188


180


207


285



Mortgage servicing rights


7,152


6,798


6,548


5,860


5,704



Accrued interest receivable


1,260


1,817


1,506


1,554


1,346



Other assets


3,310


3,046


3,017


3,536


1,587




















Total assets

$

733,071


719,237


707,208


717,555


684,228















































LIABILITIES AND EQUITY













Deposits














Non interest bearing demand

$

113,113


102,460


96,322


96,638


97,853




Interest bearing demand


126,443


126,816


127,362


133,145


121,043




Savings


83,447


77,809


78,729


75,445


64,107




Money market


104,412


107,538


100,315


106,325


104,602




Time deposits


159,038


158,945


160,198


166,730


163,301




















Total deposits


586,453


573,568


562,926


578,283


550,906


















Advances from Federal Home Loan Bank


35,000


30,000


34,000


30,000


30,000



Repurchase agreements


12,406


16,911


15,169


14,648


12,740



Trust preferred securities


10,310


10,310


10,310


10,310


10,310



Accrued interest payable


264


341


289


334


264



Other liabilities


7,397


7,782


6,391


6,880


4,325




















Total liabilities


651,830


638,912


629,085


640,455


608,545


















Equity














Preferred stock


13,983


13,983


13,983


13,983


13,983




Common stock 


12,569


12,569


12,569


12,569


12,569




Additional paid-in capital


15,438


15,444


15,424


15,413


15,461




Retained earnings


40,059


38,705


36,930


35,429


34,379




Accumulated other comprehensive income


650


1,157


750


1,264


918




Treasury stock


(1,458)


(1,533)


(1,533)


(1,558)


(1,627)




















Total equity


81,241


80,325


78,123


77,100


75,683




















Total liabilities and equity

$

733,071


719,237


707,208


717,555


684,228

















 

SB FINANCIAL GROUP, INC.


CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)





















($ in thousands, except share data)


At and for the Three Months Ended



Twelve Months Ended

























December


September


June


March


December



December


December


Interest income



2015


2015


2015


2015


2014



2015


2014



Loans


















  Taxable 

$

6,086


6,152


5,835


5,619


5,707



23,692


22,457



  Nontaxable


10


10


9


6


6



35


44



Securities


















  Taxable 


357


382


395


372


300



1,506


1,198



  Nontaxable


169


173


175


177


177



694


709























Total interest income


6,622


6,717


6,414


6,174


6,190



25,927


24,408





















Interest expense


















Deposits


492


492


500


495


483



1,979


1,984



Repurchase Agreements & Other


3


5


4


5


53



17


91



Federal Home Loan Bank advances


95


94


94


92


95



375


334



Trust preferred securities


56


53


53


51


54



213


1,071























Total interest expense


646


644


651


643


685



2,584


3,480








































Net interest income


5,976


6,073


5,763


5,531


5,505



23,343


20,928






















Provision for loan losses 


150


100


500


350


150



1,100


450





















Net interest income after provision

















  for loan losses


5,826


5,973


5,263


5,181


5,355



22,243


20,478





















Noninterest income



















Wealth Management Fees


645


636


666


659


679



2,606


2,630



Customer service fees


711


734


702


632


686



2,779


2,691



Gain on sale of mtg. loans & OMSR's

1,372


1,687


1,805


1,400


1,003



6,264


4,228



Mortgage loan servicing fees, net


383


98


486


58


43



1,025


731



Gain on sale of non-mortgage loans


75


296


288


288


143



947


321



Data service fees


273


294


306


317


324



1,190


1,289



Net gain on sales of securities


-


-


-


-


104



-


160



Gain/(loss) on sale/disposal of assets

38


-


(1)


(19)


(15)



18


(79)



Other income


219


207


191


261


197



878


856























Total non-interest income


3,716


3,952


4,443


3,596


3,164



15,707


12,827





















Noninterest expense


















Salaries and employee benefits


3,855


3,650


3,935


3,477


3,179



14,917


13,185



Net occupancy expense


479


481


480


503


521



1,943


2,087



Equipment expense


566


568


524


565


625



2,223


2,525



Data processing fees


264


286


247


263


230



1,060


928



Professional fees


381


416


426


440


465



1,663


1,703



Marketing expense


157


146


142


149


166



594


564



Telephone and communication


103


96


98


90


91



387


404



Postage and delivery expense


168


198


201


234


197



801


783



State, local and other taxes


130


130


128


129


94



517


370



Employee expense


126


126


138


153


111



543


488



Intangible amortization expense


37


54


55


54


55



200


372



Other expenses


573


475


444


587


630



2,079


2,548























Total non-interest expense


6,839


6,626


6,818


6,644


6,364



26,927


25,957








































Income before income tax expense


2,703


3,299


2,888


2,133


2,155



11,023


7,348






















Income tax expense 


835


1,035


897


637


631



3,404


2,085





















Net income 


$

1,868


2,264


1,991


1,496


1,524



7,619


5,263





















Preferred Stock Dividends 


244


244


244


225


-



956


-





















Net income available to common shares


1,624


2,020


1,747


1,271


1,524



6,663


5,263





















Common share data:


















Basic earnings per common share

$

0.33


0.41


0.36


0.26


0.31



1.36


1.08






















Diluted earnings per common share

$

0.29


0.3543


0.3109


0.2335


0.30



1.19


1.07





















Average shares outstanding ($ in thousands):


















Basic:


4,890


4,884


4,884


4,879


4,875



4,884


4,874



Diluted: 


6,396


6,390


6,382


6,379


5,044



6,423


4,942


 

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               

















($ in thousands, except per share data)


At and for the Three Months Ended



Twelve Months Ended



















December


September


June


March


December



December


December

SUMMARY OF OPERATIONS


2015


2015


2015


2015


2014



2015


2014

















   Net interest income 

$

5,976


6,073


5,763


5,531


5,505



23,343


20,928

         Tax-equivalent adjustment

$

92


94


95


94


94



376


388

   Tax-equivalent net interest income 

$

6,068


6,167


5,858


5,625


5,599



23,719


21,316

   Provision for loan loss 

$

150


100


500


350


150



1,100


450

   Noninterest income

$

3,716


3,952


4,443


3,596


3,164



15,707


12,827

   Total revenue, tax-equivalent

$

9,784


10,119


10,301


9,221


8,763



39,426


34,143

   Noninterest expense

$

6,839


6,626


6,818


6,644


6,364



26,927


25,957

   Pre provision pretax income

$

2,853


3,399


3,388


2,483


2,305



12,123


7,798

   Pretax income

$

2,703


3,299


2,888


2,133


2,155



11,023


7,348

   Net income 

$

1,868


2,264


1,991


1,496


1,524



7,619


5,263

   Income available to common shareholders 

$

1,624


2,020


1,747


1,271


1,524



6,663


5,263

































PER SHARE INFORMATION:
















   Basic earnings per share

$

0.33


0.41


0.36


0.26


0.31



1.36


1.08

   Diluted earnings per share

$

0.29


0.35


0.31


0.23


0.30



1.19


1.07

   Common dividends

$

0.055


0.050


0.050


0.045


0.045



0.200


0.160

   Book value per common share

$

12.81


12.68


12.33


12.18


11.96



12.81


11.96

   Tangible book value per common share

$

10.39


10.21


9.75


9.53


9.24



10.39


9.24

   Market price per common share

$

11.14


10.27


10.59


10.55


9.40



11.14


9.40

















PERFORMANCE RATIOS:
















   Return on average assets 


1.02%


1.26%


1.11%


0.84%


0.89%



1.06%


0.78%

   Return on average equity


9.23%


11.42%


10.26%


7.82%


9.40%



9.69%


8.74%

   Return on average tangible equity


14.80%


18.55%


16.90%


13.03%


13.03%



15.84%


12.22%

   Efficiency ratio 


70.18%


65.56%


66.26%


72.20%


72.78%



68.44%


75.80%

   Earning asset yield


4.17%


4.27%


4.18%


4.14%


4.18%



4.19%


4.21%

   Cost of interest bearing liabilities


0.49%


0.49%


0.49%


0.49%


0.53%



0.49%


0.69%

   Net interest margin


3.71%


3.81%


3.70%


3.64%


3.66%



3.72%


3.55%

   Tax equivalent effect


0.05%


0.06%


0.06%


0.07%


0.07%



0.06%


0.07%

   Net interest margin - fully tax equivalent basis 


3.76%


3.87%


3.76%


3.71%


3.73%



3.78%


3.62%

   Non interest income/Average assets


2.03%


2.20%


2.48%


2.02%


1.84%



2.18%


1.91%

   Non interest expense/Average assets


3.74%


3.69%


3.81%


3.74%


3.70%



3.74%


3.86%

















ASSET QUALITY RATIOS:
















   Gross charge-offs

$

241


58


350


303


101



952


848

   Recoveries

$

5


29


26


11


9



71


205

   Net charge-offs

$

236


29


324


292


92



881


643

   Nonaccruing loans/ Total loans


1.19%


1.25%


0.69%


0.87%


0.89%



1.19%


0.89%

   Nonperforming loans/ Total loans


1.46%


1.54%


1.00%


1.17%


1.16%



1.46%


1.16%

   Nonperforming assets/ Loans & OREO


1.51%


1.57%


1.03%


1.21%


1.22%



1.51%


1.22%

   Nonperforming assets/ Total assets


1.15%


1.18%


0.76%


0.86%


0.92%



1.15%


0.92%

   Allowance for loan loss/ Nonperforming loans


85.81%


85.07%


134.63%


114.33%


112.98%



85.81%


112.98%

   Allowance for loan loss/ Total loans


1.25%


1.31%


1.34%


1.33%


1.31%



1.25%


1.31%

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


0.17%


0.02%


0.25%


0.23%


0.07%



0.17%


0.13%

   Loan loss provision/ Net charge-offs


63.56%


344.83%


154.32%


119.86%


163.04%



124.86%


69.98%

































CAPITAL & LIQUIDITY RATIOS:
















   Loans/ Deposits


95.09%


94.30%


92.80%


88.50%


93.72%



95.09%


93.72%

   Equity/ Assets


11.08%


11.17%


11.05%


10.74%


11.06%



11.08%


11.06%

   Tangible equity/ Tangible assets


7.09%


7.10%


6.89%


6.64%


6.75%



7.09%


6.75%

   Tangible equity adjusted for conversion


9.04%


9.09%


8.92%


8.63%


8.84%



9.04%


8.84%

















END OF PERIOD BALANCES
















   Total loans 

$

557,659


540,889


522,403


511,784


516,336



557,659


516,336

   Total assets

$

733,071


719,237


707,208


717,555


684,228



733,071


684,228

   Deposits

$

586,453


573,568


562,926


578,283


550,906



586,453


550,906

   Stockholders equity

$

81,241


80,325


78,123


77,100


75,683



81,241


75,683

   Intangibles

$

16,435


16,473


16,527


16,582


16,636



16,435


16,636

   Preferred equity

$

13,983


13,983


13,983


13,983


13,983



13,983


13,983

   Tangible equity

$

50,823


49,869


47,613


46,535


45,064



50,823


45,064

   Full-time equivalent employees


214


209


207


198


190



214


190

   Period end basic shares outstanding


4,891


4,884


4,884


4,881


4,875



4,891


4,875

   Period end outstanding (Series A Converted)


1,451


1,451


1,451


1,451


1,451



1,451


1,451

















AVERAGE BALANCES
















   Total loans 

$

549,877


538,646


521,477


516,004


516,517



531,614


501,486

   Total earning assets 

$

644,783


638,266


622,643


605,956


600,851



628,047


589,332

   Total assets

$

731,198


718,591


716,736


711,100


687,674



719,586


672,277

   Deposits

$

585,922


572,801


576,250


568,885


551,906



575,840


535,560

   Stockholders equity

$

80,911


79,301


77,649


76,534


64,846



78,618


60,186

   Intangibles

$

16,450


16,500


16,555


16,609


16,664



16,529


16,787

   Preferred equity

$

13,983


13,983


13,983


13,983


1,398



13,983


350

   Tangible equity

$

50,478


48,818


47,111


45,942


46,784



48,106


43,049

   Average basic shares outstanding


4,890


4,884


4,884


4,879


4,875



4,884


4,874

   Average diluted shares outstanding


6,396


6,390


6,382


6,379


5,044



6,423


4,942

 

SB FINANCIAL GROUP, INC.


Rate Volume Analysis - (Unaudited)


At and for the Three & Twelve Months Ended December 31, 2015 and 2014









($ in Thousands)


Three Months Ended December 31, 2015



Three Months Ended December 31, 2014




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities

$

77,944

357

1.83%


$

66,235

300

1.81%


Nontaxable securities


16,962

256

6.04%



18,099

268

5.93%


Loans, net


549,877

6,101

4.44%



516,517

5,717

4.43%













       Total earning assets


644,783

6,714

4.17%



600,851

6,284

4.18%













Cash and due from banks


32,284





35,261




Allowance for loan losses


(7,100)





(6,730)




Premises and equipment


17,974





13,686




Other assets


43,257





44,606















      Total assets

$

731,198




$

687,674














Liabilities











Savings and interest bearing demand

$

314,959

95

0.12%


$

290,329

40

0.06%


Time deposits


159,777

397

0.99%



165,227

443

1.07%


Repurchase agreements & Other


14,527

3

0.08%



20,582

53

1.03%


Advances from Federal Home Loan Bank


29,897

95

1.27%



30,000

95

1.27%


Trust preferred securities


10,310

56

2.17%



10,310

54

2.10%













      Total interest bearing liabilities


529,470

646

0.49%



516,448

685

0.53%













Non interest bearing demand


111,186


0.40%



96,350


0.45%


Other liabilities


9,631





10,030















      Total liabilities


650,287





622,828















Equity


80,911





64,846















      Total liabilities and equity

$

731,198




$

687,674















Net interest income (tax equivalent basis)



$              6,068





$              5,599














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


3.76%





3.73%


























Twelve Months Ended December 31, 2015



Twelve Months Ended December 31, 2014




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities

$

78,840

1,506

1.91%


$

69,795

1,198

1.72%


Nontaxable securities


17,593

1,052

5.98%



18,051

1,074

5.95%


Loans, net


531,614

23,745

4.47%



501,486

22,524

4.49%













       Total earning assets


628,047

26,303

4.19%



589,332

24,796

4.21%













Cash and due from banks


38,895





24,665




Allowance for loan losses


(6,979)





(6,785)




Premises and equipment


16,427





13,725




Other assets


43,196





51,340















      Total assets

$

719,586




$

672,277














Liabilities











Savings and interest bearing demand

$

309,169

346

0.11%


$

275,188

105

0.04%


Time deposits


162,245

1,633

1.01%



171,399

1,879

1.10%


Repurchase agreements & Other


15,749

17

0.11%



18,764

91

0.48%


Advances from Federal Home Loan Bank


29,996

375

1.25%



24,294

334

1.37%


Trust preferred securities


10,310

213

2.07%



17,448

1,071

6.14%













      Total interest bearing liabilities


527,469

2,584

0.49%



507,093

3,480

0.69%













Non interest bearing demand


104,426


0.41%



88,973


0.58%


Other liabilities


9,073





16,025















      Total liabilities


640,968





612,091















Equity


78,618





60,186















      Total liabilities and equity

$

719,586




$

672,277















Net interest income (tax equivalent basis)



$            23,719





$            21,316

























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


3.78%





3.62%























 

 

SOURCE SB Financial Group, Inc.



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