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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