SB Financial Group, Inc. Announces Fourth-Quarter and Full-Year 2014 Results
8.2% year-over-year loan growth and 25% year-over-year earnings growth
DEFIANCE, Ohio, Jan. 21, 2015 /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 and item processing services, today reported earnings for the fourth quarter and full year ended December 31, 2014.
Fourth-quarter highlights include:
- Net income of $1.5 million for the fourth quarter represented a 25.0 percent increase over the prior year fourth quarter
- Loan growth up $39.0 million, or 8.2 percent, from the prior year
- Fully tax equivalent (FTE) revenue up 8.9 percent from the prior year
- Net interest margin (FTE) of 3.73 percent for the quarter was up 16 basis points from the prior year
- Asset quality remained strong for the quarter, with the nonperforming asset ratio at 0.92 percent at December 31, 2014
- Operating expenses were up slightly compared with the year-ago fourth quarter, but down 7.6 percent from the linked quarter
Full-year 2014 highlights include:
- Net income of $5.3 million, or $1.07 per diluted share, compared to $5.2 million, or $1.07 per diluted share, for the prior year
- Total revenue (FTE) of $34.1 million, which was down 2.9 percent from the prior year
- Total operating expense of $26.0 million, which was down 2.1 percent from the prior year
Highlights* |
Three Months Ended |
Full Year |
||
(in $000's except ratios and per share data) |
Dec. 2014 |
Dec. 2013 |
2014 |
2013 |
Net interest income (FTE) |
$ 5,599 |
$ 5,096 |
$ 21,316 |
$ 21,110 |
Noninterest income |
3,164 |
2,949 |
12,827 |
14,046 |
Noninterest expense |
6,364 |
6,199 |
25,957 |
26,511 |
Net income |
1,524 |
1,224 |
5,263 |
5,205 |
Earnings per diluted share |
0.30 |
0.25 |
1.07 |
1.07 |
Net interest margin (FTE) |
3.73% |
3.57% |
3.62% |
3.75% |
Return on assets |
0.89% |
0.76% |
0.78% |
0.81% |
Return on equity |
9.40% |
8.75% |
8.74% |
9.52% |
*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) (RDSI). |
"We are pleased with our solid fourth-quarter results," said Mark Klein, President and Chief Executive Officer of SB Financial. "We continue to drive performance improvement in our Company as we implement our strategic initiatives to diversify our revenue streams, achieve operational excellence and expand our market presence. During the quarter, we had robust mortgage production, solid balance sheet growth, expense control and stable asset quality. Additionally, we successfully completed our preferred stock offering and announced our re-entry into the Findlay, Ohio market."
RESULTS OF OPERATIONS
Consolidated Revenue
Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was up 8.9 percent from the fourth quarter of 2013, but down 5.3 percent from the linked quarter.
- Net interest income (FTE) was up 9.9 percent for the fourth quarter, and up 2.8 percent compared to the linked quarter. For the full year, net interest income (FTE) was up 1.0 percent.
- Net interest margin (FTE) was up 16 basis points for the fourth quarter, and up 9 basis points from the linked quarter. Margin for the full year was down 13 basis points.
- Net interest margin was impacted by the payoff of our fixed rate trust preferred securities late in the third quarter. For the fourth quarter, this early payoff increased margin by 15 basis points.
- Noninterest income was up 7.3 percent for the fourth quarter, but down 16.9 percent from the linked quarter. For the full year, noninterest income was down 8.7 percent.
Total revenue, consisting of net interest income on an FTE basis and noninterest income, for the twelve months of 2014 was $34.1 million, compared to $35.2 million for the twelve months of 2013 or a 2.9 percent decline. The twelve-month results were impacted by lower mortgage origination volume during the first half of 2014 and the reduction in the yield on earning assets.
Mortgage Loan Business
Mortgage loan originations for the fourth quarter of 2014 were $52.1 million, up $12.4 million, or 31.2 percent, from the year-ago fourth quarter. For the twelve months of 2014, mortgage loan originations were $219.7 million, down from $248.8 million for the twelve months of 2013 or an 11.7 percent decline.
Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.0 million for the fourth quarter of 2014, compared to $1.0 million for the year-ago quarter. The mortgage servicing valuation adjustment for the fourth-quarter 2014 was a negative $0.19 million, down $0.25 million from the linked quarter. The mortgage servicing portfolio at December 31, 2014, was $665.7 million, up $59.7 million from $606.0 million, or 9.9 percent, from December 31, 2013.
Mr. Klein noted, "Our mortgage volumes for the quarter were strong compared to the prior year. While 2014 volumes were lower than in previous years, we were pleased that 93 percent of this year's activity was from new SB Financial clients."
Mortgage Banking ($000's) |
|||||
Dec. 2014 |
Sep. 2014 |
Jun. 2014 |
Mar. 2014 |
Dec. 2013 |
|
Mortgage originations |
$ 52,058 |
$ 67,502 |
$ 66,563 |
$ 33,602 |
$ 39,679 |
Mortgage sales |
43,542 |
60,982 |
49,091 |
27,961 |
33,921 |
Mortgage servicing portfolio |
665,710 |
649,669 |
627,215 |
609,419 |
605,993 |
Mortgage servicing rights |
5,704 |
5,720 |
5,375 |
5,228 |
5,180 |
Mortgage servicing revenue: |
|||||
Loan servicing fees |
410 |
400 |
387 |
380 |
388 |
OMSR amortization |
(174) |
(175) |
(147) |
(117) |
(126) |
Net administrative fees |
236 |
225 |
240 |
263 |
262 |
OMSR valuation adjustment |
(193) |
62 |
(83) |
(18) |
(21) |
Net loan servicing fees |
43 |
287 |
156 |
245 |
241 |
Gain on sale of mortgages |
1,003 |
1,442 |
1,211 |
572 |
776 |
Mortgage banking revenue, net |
1,046 |
$1,729 |
$1,368 |
$817 |
$1,017 |
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 $330.8 million as of December 31, 2014. For the fourth quarter of 2014, fee income as a percentage of total revenue was 36.5 percent, down slightly from the prior year. For the twelve months of 2014, fee income as a percentage of total revenue was 38.0 percent.
For the fourth quarter of 2014, noninterest expense (NIE) was up $0.2 million, or 2.7 percent, compared to the fourth quarter of 2013. For the twelve months of 2014, operating expenses were down $0.6 million, or 2.1 percent, compared to the twelve months of 2013. When adjusted for the trust preferred securities prepayment, expenses for the twelve months of 2014 were down $1.0 million, or 3.7 percent, compared to the prior-year period.
"In the current interest-rate environment, our fee income continues to be a competitive strength," Mr. Klein stated. "For the fourth quarter, our fee income included the sale of several SBA credits, which delivered $143,000 in gains. We have been actively pursuing SBA loans all year and our pipeline is strengthening."
Fee Income / Noninterest Expense (000's) |
|||||
Dec. 2014 |
Sep. 2014 |
Jun. 2014 |
Mar. 2014 |
Dec. 2013 |
|
Fee Income |
$ 3,164 |
$ 3,809 |
$ 3,295 |
$ 2,559 |
$ 2,949 |
Fee Income / Total Revenue |
36.5% |
41.6% |
38.6% |
34.7% |
37.1% |
Fee Income / Average Assets |
1.8% |
2.3% |
2.0% |
1.6% |
1.8% |
Noninterest Expense |
$ 6,364 |
$ 6,888 |
$ 6,627 |
$ 6,079 |
$ 6,199 |
Efficiency Ratio |
72.8% |
74.6% |
76.0% |
80.6% |
76.4% |
NIE / Average Assets |
3.7% |
4.1% |
4.0% |
3.8% |
3.8% |
Balance Sheet
Total assets as of December 31, 2014, were $684.2 million, up 8.3 percent from a year ago. Total equity as of December 31, 2014, was $75.7 million, up 34.5 percent from a year ago. Equity balances included the net impact of our capital raise completed in the fourth quarter, which added $14.0 million to total equity through the public offering of depository shares representing 1/100th interest in our 6.50 percent Noncumulative Convertible Preferred Shares, Series A.
Total loans held for investment were $516.3 million at December 31, 2014, up $39.0 million, or 8.2 percent, from December 31, 2013. Residential real estate loans accounted for the majority of growth, up $18.8 million, or 18.8 percent. Commercial real estate and agricultural loans rose $11.7 million, or 5.7 percent, and $7.0 million, or 17.9 percent, respectively.
The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $89.0 million represented 13.0 percent of assets at December 31, 2014, and was down slightly from a year ago. Deposit balances of $550.9 million at December 31, 2014, increased by $32.7 million, or 6.3 percent since December 31, 2013. Growth from the prior year included $17.8 million in checking and $14.9 million in savings and time deposit balances.
Mr. Klein said, "We continued to see solid growth in our loan portfolio during the fourth quarter, primarily as a result of higher residential and commercial real estate loan activity. Our equity balances improved substantially this quarter after the completion of a very successful preferred stock offering."
Loan Portfolio ($000's) |
Dec. 2014 |
Sep. 2014 |
Jun. 2014 |
Mar. 2014 |
Dec. 2013 |
Variance |
|||
Commercial |
$ 83,190 |
$ 90,407 |
$ 92,424 |
$ 85,701 |
$ 85,368 |
$ (2,178) |
|||
% of Total |
16.1% |
17.9% |
18.3% |
17.8% |
17.9% |
2.6% |
|||
Commercial RE |
217,030 |
212,964 |
215,824 |
212,502 |
205,301 |
11,729 |
|||
% of Total |
42.0% |
42.1% |
42.6% |
44.1% |
43.0% |
5.7% |
|||
Agriculture |
46,217 |
44,162 |
43,475 |
39,028 |
39,210 |
7,007 |
|||
% of Total |
9.0% |
8.7% |
8.6% |
8.1% |
8.2% |
17.9% |
|||
Residential RE |
118,382 |
107,712 |
105,054 |
97,857 |
99,620 |
18,762 |
|||
% of Total |
22.9% |
21.3% |
20.8% |
20.3% |
20.9% |
18.8% |
|||
Consumer & Other |
51,517 |
50,679 |
49,350 |
46,836 |
47,804 |
3,713 |
|||
% of Total |
10.0% |
10.0% |
9.7% |
9.7% |
10.0% |
7.8% |
|||
Total Loans |
$516,336 |
$505,924 |
$506,127 |
$481,924 |
$477,303 |
$ 39,033 |
|||
Total Growth Percentage |
8.2% |
||||||||
Asset Quality
SB Financial continues to improve its asset quality, reporting nonperforming assets of $6.3 million as of December 31, 2014, down $1.0 million, or 13.2 percent, from the year-ago quarter. Already trending better than our key peer metrics, the 0.92 percent of nonperforming assets to total assets continues a trend of sub 1.0 percent for the last three quarters. Coverage of problem loans by the loan loss allowance was 113.0 percent at December 31, 2014, up from the 105.8 percent at December 31, 2013.
Summary of Nonperforming Assets ($000's) |
|||||
Nonperforming Loan Category |
Dec. 2014 |
Sep. 2014 |
Jun. 2014 |
Mar. 2014 |
Dec. 2013 |
Commercial |
$ 1,387 |
$ 1,397 |
$ 1,485 |
$ 1,818 |
$ 2,316 |
% of Total Commercial loans |
1.7% |
1.5% |
1.6% |
2.1% |
2.7% |
Commercial RE |
2,092 |
616 |
699 |
753 |
532 |
% of Total CRE loans |
1.0% |
0.3% |
0.3% |
0.4% |
0.3% |
Residential RE |
992 |
1,015 |
1,534 |
1,555 |
1,651 |
% of Total Res. RE loans |
0.8% |
0.9% |
1.5% |
1.6% |
1.7% |
Consumer & Other |
138 |
174 |
288 |
280 |
345 |
% of Total Cons. & Other loans |
0.3% |
0.3% |
0.6% |
0.6% |
0.7% |
Total Nonaccruing Loans |
4,609 |
3,202 |
4,006 |
4,406 |
4,844 |
% of Total Loans |
0.9% |
0.6% |
0.8% |
0.9% |
1.0% |
Accruing Restructured Loans |
1,384 |
1,620 |
1,665 |
1,793 |
1,739 |
Total Nonaccruing & Restructured Loans |
$ 5,993 |
$ 4,822 |
$ 5,671 |
$ 6,199 |
$ 6,583 |
% of Total Loans |
1.2% |
1.0% |
1.1% |
1.3% |
1.4% |
OREO & Repossessed Vehicles |
285 |
540 |
516 |
615 |
651 |
Total Nonperforming Assets |
$ 6,278 |
$ 5,362 |
$ 6,187 |
$ 6,814 |
$ 7,233 |
% of Total Assets |
0.9% |
0.8% |
0.9% |
1.1% |
1.1% |
Capitalization
Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 36 basis points over the past year and stood at 6.8 percent as of December 31, 2014. All bank regulatory ratios remain in excess of "well-capitalized" levels. At December 31, 2014, State Bank's Total Risk-Based Capital was estimated to be $63.5 million, $21.2 million above the "well-capitalized" level. The Total Risk-Based Capital Ratio is estimated at 12.5 percent.
The Company will hold a related conference call and webcast on January 22, at 10:00 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 16 banking centers in seven northwestern Ohio counties and one center in Fort Wayne, Indiana, as well as two loan production offices located in Columbus, Ohio, and one loan production office located in Angola, Indiana. 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.
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) |
2014 |
2014 |
2014 |
2014 |
2013 |
||||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ |
28,197 |
$ |
21,870 |
$ |
13,778 |
$ |
14,860 |
$ |
13,137 |
|||
Securities available for sale, at fair value |
85,240 |
81,148 |
85,586 |
93,305 |
89,793 |
||||||||
Other securities - FRB and FHLB Stock |
3,748 |
3,748 |
3,748 |
3,748 |
3,748 |
||||||||
Total investment securities |
88,988 |
84,896 |
89,334 |
97,053 |
93,541 |
||||||||
Loans held for sale |
5,168 |
6,736 |
8,290 |
7,165 |
3,366 |
||||||||
Loans, net of unearned income |
516,336 |
505,924 |
506,127 |
481,924 |
477,303 |
||||||||
Allowance for loan losses |
(6,771) |
(6,713) |
(6,568) |
(6,726) |
(6,964) |
||||||||
Net loans |
509,565 |
499,211 |
499,559 |
475,198 |
470,339 |
||||||||
Premises and equipment, net |
13,604 |
13,256 |
13,281 |
13,414 |
12,607 |
||||||||
Cash surrender value of life insurance |
13,148 |
13,074 |
13,059 |
12,982 |
12,906 |
||||||||
Goodwill |
16,353 |
16,353 |
16,353 |
16,353 |
16,353 |
||||||||
Core deposits and other intangibles |
283 |
338 |
393 |
524 |
655 |
||||||||
Foreclosed assets held for sale, net |
285 |
540 |
516 |
615 |
651 |
||||||||
Mortgage servicing rights |
5,704 |
5,720 |
5,375 |
5,228 |
5,180 |
||||||||
Accrued interest receivable |
1,346 |
1,853 |
1,456 |
1,423 |
1,281 |
||||||||
Other assets |
1,587 |
709 |
1,106 |
1,487 |
1,738 |
||||||||
Total assets |
$ |
684,228 |
$ |
664,556 |
$ |
662,500 |
$ |
646,302 |
$ |
631,754 |
|||
LIABILITIES AND EQUITY |
|||||||||||||
Deposits |
|||||||||||||
Non interest bearing demand |
$ |
97,853 |
$ |
90,261 |
$ |
87,706 |
$ |
84,265 |
$ |
81,570 |
|||
Interest bearing demand |
121,043 |
119,805 |
116,765 |
126,520 |
119,551 |
||||||||
Savings |
64,107 |
61,770 |
63,199 |
64,306 |
61,652 |
||||||||
Money market |
104,602 |
96,506 |
80,288 |
85,731 |
79,902 |
||||||||
Time deposits |
163,301 |
166,919 |
176,109 |
171,897 |
175,559 |
||||||||
Total deposits |
550,906 |
535,261 |
524,067 |
532,719 |
518,234 |
||||||||
Notes payable |
- |
7,000 |
- |
- |
589 |
||||||||
Advances from Federal Home Loan Bank |
30,000 |
30,000 |
37,000 |
14,000 |
16,000 |
||||||||
Repurchase agreements |
12,740 |
17,902 |
17,246 |
16,905 |
14,696 |
||||||||
Trust preferred securities |
10,310 |
10,310 |
20,620 |
20,620 |
20,620 |
||||||||
Accrued interest payable |
264 |
355 |
655 |
425 |
639 |
||||||||
Other liabilities |
4,325 |
3,462 |
3,902 |
4,198 |
4,707 |
||||||||
Total liabilities |
608,545 |
604,290 |
603,490 |
588,867 |
575,485 |
||||||||
Equity |
|||||||||||||
Preferred stock |
13,983 |
- |
- |
- |
- |
||||||||
Common stock |
12,569 |
12,569 |
12,569 |
12,569 |
12,569 |
||||||||
Additional paid-in capital |
15,461 |
15,418 |
15,403 |
15,391 |
15,412 |
||||||||
Retained earnings |
34,379 |
33,075 |
31,757 |
30,708 |
29,899 |
||||||||
Accumulated other comprehensive income |
918 |
831 |
908 |
407 |
74 |
||||||||
Treasury stock |
(1,627) |
(1,627) |
(1,627) |
(1,640) |
(1,685) |
||||||||
Total equity |
75,683 |
60,266 |
59,010 |
57,435 |
56,269 |
||||||||
Total liabilities and equity |
$ |
684,228 |
$ |
664,556 |
$ |
662,500 |
$ |
646,302 |
$ |
631,754 |
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 |
2014 |
2014 |
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||||
Loans |
|||||||||||||||||
Taxable |
$ |
5,707 |
$ |
5,855 |
$ |
5,654 |
$ |
5,241 |
$ |
5,428 |
$ |
22,457 |
$ |
22,834 |
|||
Nontaxable |
6 |
9 |
13 |
16 |
13 |
44 |
67 |
||||||||||
Securities |
|||||||||||||||||
Taxable |
300 |
279 |
310 |
309 |
313 |
1,198 |
1,244 |
||||||||||
Nontaxable |
177 |
178 |
179 |
175 |
181 |
709 |
703 |
||||||||||
Total interest income |
6,190 |
6,321 |
6,156 |
5,741 |
5,935 |
24,408 |
24,848 |
||||||||||
Interest expense |
|||||||||||||||||
Deposits |
483 |
500 |
503 |
498 |
513 |
1,984 |
2,231 |
||||||||||
Repurchase Agreements & Other |
53 |
23 |
4 |
11 |
14 |
91 |
58 |
||||||||||
Federal Home Loan Bank advances |
95 |
94 |
71 |
74 |
82 |
334 |
339 |
||||||||||
Trust preferred securities |
54 |
354 |
330 |
333 |
330 |
1,071 |
1,407 |
||||||||||
Total interest expense |
685 |
971 |
908 |
916 |
939 |
3,480 |
4,035 |
||||||||||
Net interest income |
5,505 |
5,350 |
5,248 |
4,825 |
4,996 |
20,928 |
20,813 |
||||||||||
Provision for loan losses |
150 |
150 |
150 |
- |
- |
450 |
900 |
||||||||||
Net interest income after provision |
|||||||||||||||||
for loan losses |
5,355 |
5,200 |
5,098 |
4,825 |
4,996 |
20,478 |
19,913 |
||||||||||
Noninterest income |
|||||||||||||||||
Wealth Management Fees |
679 |
670 |
649 |
632 |
689 |
2,630 |
2,653 |
||||||||||
Customer service fees |
686 |
730 |
665 |
610 |
673 |
2,691 |
2,587 |
||||||||||
Gain on sale of mtg. loans & OMSR's |
1,003 |
1,442 |
1,211 |
572 |
776 |
4,228 |
5,066 |
||||||||||
Mortgage loan servicing fees, net |
43 |
287 |
156 |
245 |
241 |
731 |
1,246 |
||||||||||
Gain on sale of non-mortgage loans |
143 |
71 |
84 |
23 |
303 |
321 |
585 |
||||||||||
Data service fees |
324 |
337 |
322 |
306 |
295 |
1,289 |
1,500 |
||||||||||
Net gain on sales of securities |
104 |
- |
56 |
- |
- |
160 |
48 |
||||||||||
Gain/(loss) on sale/disposal of assets |
(15) |
(15) |
(15) |
(34) |
(265) |
(79) |
(484) |
||||||||||
Other income |
197 |
287 |
167 |
205 |
237 |
856 |
845 |
||||||||||
Total non-interest income |
3,164 |
3,809 |
3,295 |
2,559 |
2,949 |
12,827 |
14,046 |
||||||||||
Noninterest expense |
|||||||||||||||||
Salaries and employee benefits |
3,179 |
3,435 |
3,451 |
3,120 |
3,027 |
13,185 |
13,497 |
||||||||||
Net occupancy expense |
521 |
508 |
485 |
573 |
494 |
2,087 |
2,055 |
||||||||||
Equipment expense |
625 |
616 |
645 |
639 |
651 |
2,525 |
2,810 |
||||||||||
Data processing fees |
230 |
238 |
249 |
211 |
254 |
928 |
714 |
||||||||||
Professional fees |
465 |
435 |
465 |
338 |
443 |
1,703 |
1,827 |
||||||||||
Marketing expense |
166 |
105 |
170 |
123 |
136 |
564 |
471 |
||||||||||
Telephone and communication |
91 |
94 |
107 |
112 |
110 |
404 |
582 |
||||||||||
Postage and delivery expense |
197 |
195 |
187 |
204 |
173 |
783 |
796 |
||||||||||
State, local and other taxes |
94 |
89 |
95 |
92 |
138 |
370 |
550 |
||||||||||
Employee expense |
111 |
122 |
140 |
115 |
154 |
488 |
557 |
||||||||||
Intangible amortization expense |
55 |
55 |
131 |
131 |
129 |
372 |
564 |
||||||||||
OREO Impairment |
- |
- |
- |
- |
- |
- |
33 |
||||||||||
Other expenses |
630 |
996 |
502 |
421 |
490 |
2,548 |
2,055 |
||||||||||
Total non-interest expense |
6,364 |
6,888 |
6,627 |
6,079 |
6,199 |
25,957 |
26,511 |
||||||||||
Income before income tax expense |
2,155 |
2,121 |
1,767 |
1,306 |
1,746 |
7,348 |
7,448 |
||||||||||
Income tax expense |
631 |
607 |
521 |
326 |
522 |
2,085 |
2,243 |
||||||||||
Net income |
$ |
1,524 |
$ |
1,513 |
$ |
1,246 |
$ |
980 |
$ |
1,224 |
$ |
5,263 |
$ |
5,205 |
|||
Preferred Stock Dividends |
- |
- |
- |
- |
- |
- |
- |
||||||||||
Net income available to common |
1,524 |
1,513 |
1,246 |
980 |
1,224 |
5,263 |
5,205 |
||||||||||
Common share data: |
|||||||||||||||||
Basic earnings per common share |
$ |
0.31 |
$ |
0.31 |
$ |
0.26 |
$ |
0.20 |
$ |
0.25 |
$ |
1.08 |
$ |
1.07 |
|||
Diluted earnings per common share |
$ |
0.30 |
$ |
0.31 |
$ |
0.25 |
$ |
0.20 |
$ |
0.25 |
$ |
1.07 |
$ |
1.07 |
|||
Average shares outstanding ($ in thousands): |
|||||||||||||||||
Basic: |
4,875 |
4,875 |
4,874 |
4,871 |
4,870 |
4,874 |
4,866 |
||||||||||
Diluted: |
5,044 |
4,900 |
4,893 |
4,894 |
4,882 |
4,932 |
4,878 |
SB FINANCIAL GROUP, INC. |
|||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) |
|||||||||||||||
At and for the |
|||||||||||||||
($ 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 |
2014 |
2014 |
2014 |
2014 |
2013 |
2014 |
2013 |
||||||||
Net interest income |
$ |
5,505 |
5,350 |
5,248 |
4,825 |
4,996 |
20,928 |
20,813 |
|||||||
Tax-equivalent adjustment |
$ |
94 |
96 |
99 |
98 |
100 |
388 |
297 |
|||||||
Tax-equivalent net interest income |
$ |
5,599 |
5,446 |
5,347 |
4,923 |
5,096 |
21,316 |
21,110 |
|||||||
Provision for loan loss |
$ |
150 |
150 |
150 |
- |
- |
450 |
900 |
|||||||
Noninterest income |
$ |
3,164 |
3,809 |
3,295 |
2,559 |
2,949 |
12,827 |
14,046 |
|||||||
Total revenue, tax-equivalent |
$ |
8,763 |
9,255 |
8,642 |
7,482 |
8,045 |
34,143 |
35,156 |
|||||||
Noninterest expense |
$ |
6,364 |
6,888 |
6,627 |
6,079 |
6,199 |
25,957 |
26,511 |
|||||||
Pre provision pretax income |
$ |
2,305 |
2,271 |
1,917 |
1,306 |
1,746 |
7,798 |
8,348 |
|||||||
Pretax income |
$ |
2,155 |
2,121 |
1,767 |
1,306 |
1,746 |
7,348 |
7,448 |
|||||||
Net income |
$ |
1,524 |
1,513 |
1,246 |
980 |
1,224 |
5,263 |
5,205 |
|||||||
PER SHARE INFORMATION: |
|||||||||||||||
Basic earnings per share |
$ |
0.31 |
0.31 |
0.26 |
0.20 |
0.25 |
1.08 |
1.07 |
|||||||
Diluted earnings per share |
$ |
0.31 |
0.31 |
0.25 |
0.20 |
0.25 |
1.07 |
1.07 |
|||||||
Common dividends |
$ |
0.045 |
0.040 |
0.040 |
0.035 |
0.035 |
0.16 |
0.12 |
|||||||
Book value per common share |
$ |
11.96 |
12.36 |
12.10 |
11.78 |
11.55 |
11.96 |
11.55 |
|||||||
Tangible book value per common share |
$ |
9.24 |
8.94 |
8.67 |
8.32 |
8.06 |
9.24 |
8.06 |
|||||||
Market price per share |
$ |
9.40 |
9.05 |
8.37 |
8.35 |
7.88 |
9.40 |
7.88 |
|||||||
PERFORMANCE RATIOS: |
|||||||||||||||
Return on average assets |
0.89% |
0.90% |
0.76% |
0.61% |
0.76% |
0.78% |
0.81% |
||||||||
Return on average common equity |
9.40% |
10.14% |
8.55% |
6.88% |
8.75% |
8.74% |
9.52% |
||||||||
Return on avg. tangible common equity |
13.03% |
14.09% |
12.01% |
9.89% |
12.71% |
12.22% |
13.93% |
||||||||
Efficiency ratio |
72.78% |
74.60% |
76.03% |
80.55% |
76.40% |
75.80% |
74.43% |
||||||||
Earning asset yield |
4.18% |
4.29% |
4.16% |
4.10% |
4.31% |
4.21% |
4.43% |
||||||||
Cost of interest bearing liabilities |
0.53% |
0.76% |
0.72% |
0.74% |
0.76% |
0.69% |
0.81% |
||||||||
Net interest margin |
3.66% |
3.58% |
3.53% |
3.39% |
3.50% |
3.55% |
3.68% |
||||||||
Tax equivalent effect |
0.07% |
0.06% |
0.07% |
0.07% |
0.07% |
0.07% |
0.07% |
||||||||
Net interest margin - fully tax equivalent basis |
3.73% |
3.64% |
3.60% |
3.46% |
3.57% |
3.62% |
3.75% |
||||||||
ASSET QUALITY RATIOS: |
|||||||||||||||
Gross charge-offs |
$ |
101 |
94 |
330 |
323 |
163 |
848 |
1,328 |
|||||||
Recoveries |
$ |
9 |
90 |
21 |
85 |
7 |
205 |
260 |
|||||||
Net charge-offs |
$ |
92 |
4 |
309 |
238 |
156 |
643 |
1,068 |
|||||||
Nonaccruing loans/ Total loans |
0.89% |
0.63% |
0.79% |
0.91% |
1.01% |
0.89% |
1.01% |
||||||||
Nonperforming loans/ Total loans |
1.16% |
0.95% |
1.12% |
1.29% |
1.38% |
1.16% |
1.38% |
||||||||
Nonperforming assets/ Loans & OREO |
1.22% |
1.06% |
1.22% |
1.41% |
1.51% |
1.22% |
1.51% |
||||||||
Nonperforming assets/ Total assets |
0.92% |
0.81% |
0.93% |
1.05% |
1.14% |
0.92% |
1.14% |
||||||||
Allowance for loan loss/ Nonperforming loans |
112.98% |
139.22% |
115.82% |
108.50% |
105.80% |
112.98% |
105.80% |
||||||||
Allowance for loan loss/ Total loans |
1.31% |
1.33% |
1.30% |
1.40% |
1.46% |
1.31% |
1.46% |
||||||||
Net loan charge-offs/ Average loans (ann.) |
0.07% |
N/M |
0.25% |
0.20% |
0.13% |
0.13% |
0.23% |
||||||||
Loan loss provision/ Net charge-offs |
163.04% |
N/M |
48.54% |
0.00% |
0.00% |
69.98% |
84.27% |
||||||||
CAPITAL & LIQUIDITY RATIOS: |
|||||||||||||||
Loans/ Deposits |
93.72% |
94.52% |
96.58% |
90.46% |
92.10% |
93.72% |
92.10% |
||||||||
Equity/ Assets |
11.06% |
9.07% |
8.91% |
8.89% |
8.91% |
11.06% |
8.91% |
||||||||
Tangible equity/ Tangible assets |
6.75% |
6.73% |
6.54% |
6.44% |
6.39% |
6.75% |
6.39% |
||||||||
END OF PERIOD BALANCES |
|||||||||||||||
Total loans |
$ |
516,336 |
505,924 |
506,127 |
481,924 |
477,303 |
516,336 |
477,303 |
|||||||
Total assets |
$ |
684,228 |
664,556 |
662,500 |
646,302 |
631,754 |
684,228 |
631,754 |
|||||||
Deposits |
$ |
550,906 |
535,261 |
524,067 |
532,719 |
518,234 |
550,906 |
518,234 |
|||||||
Stockholders equity |
$ |
75,683 |
60,266 |
59,010 |
57,435 |
56,269 |
75,683 |
56,269 |
|||||||
Intangibles |
$ |
16,636 |
16,691 |
16,746 |
16,877 |
17,008 |
16,636 |
17,008 |
|||||||
Preferred equity |
$ |
13,983 |
- |
- |
- |
- |
13,983 |
- |
|||||||
Tangible equity |
$ |
45,064 |
43,575 |
42,264 |
40,558 |
39,261 |
45,064 |
39,261 |
|||||||
Full-time equivalent employees |
190 |
195 |
193 |
197 |
200 |
190 |
200 |
||||||||
Period end basic shares outstanding |
4,875 |
4,875 |
4,875 |
4,874 |
4,870 |
4,875 |
4,870 |
||||||||
Period end outstanding (Series A Converted) |
1,451 |
- |
- |
- |
- |
1,451 |
- |
||||||||
AVERAGE BALANCES |
|||||||||||||||
Total loans |
$ |
516,517 |
512,151 |
500,167 |
476,553 |
479,701 |
501,486 |
469,603 |
|||||||
Total earning assets |
$ |
600,851 |
598,223 |
594,256 |
569,524 |
571,332 |
589,332 |
565,390 |
|||||||
Total assets |
$ |
687,674 |
673,213 |
658,108 |
646,864 |
645,148 |
672,277 |
639,920 |
|||||||
Deposits |
$ |
551,906 |
534,841 |
531,786 |
524,145 |
525,334 |
535,560 |
521,648 |
|||||||
Stockholders equity |
$ |
64,846 |
59,684 |
58,276 |
56,977 |
55,925 |
60,186 |
54,700 |
|||||||
Intangibles |
$ |
16,664 |
16,719 |
16,811 |
17,347 |
17,404 |
16,787 |
17,323 |
|||||||
Preferred equity |
$ |
1,398 |
- |
- |
- |
- |
350 |
- |
|||||||
Tangible equity |
$ |
46,784 |
42,965 |
41,465 |
39,630 |
38,521 |
43,049 |
37,377 |
|||||||
Average diluted shares outstanding |
4,916 |
4,900 |
4,893 |
4,894 |
4,882 |
4,907 |
4,878 |
SB FINANCIAL GROUP, INC. |
||||||||||
Rate Volume Analysis - (Unaudited) |
||||||||||
For the Three & Twelve Months Ended December 31, 2014 and 2013 |
||||||||||
($ in Thousands) |
Three Months Ended December 31, 2014 |
Three Months Ended December 31, 2013 |
||||||||
Average |
Average |
Average |
Average |
|||||||
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
Taxable securities |
$ |
66,235 |
300 |
1.81% |
$ |
73,306 |
313 |
1.71% |
||
Nontaxable securities |
18,099 |
268 |
5.93% |
18,325 |
274 |
5.99% |
||||
Federal funds sold |
- |
- |
N/A |
- |
- |
N/A |
||||
Loans, net |
516,517 |
5,716 |
4.43% |
479,701 |
5,448 |
4.54% |
||||
Total earning assets |
600,851 |
6,284 |
4.18% |
571,332 |
6,035 |
4.23% |
||||
Cash and due from banks |
35,261 |
22,369 |
||||||||
Allowance for loan losses |
(6,730) |
(7,075) |
||||||||
Premises and equipment |
13,686 |
13,811 |
||||||||
Other assets |
44,606 |
44,711 |
||||||||
Total assets |
$ |
687,674 |
$ |
645,148 |
||||||
Liabilities |
||||||||||
Savings and interest bearing demand |
$ |
290,329 |
40 |
0.06% |
$ |
265,258 |
18 |
0.03% |
||
Time deposits |
165,227 |
443 |
1.07% |
176,609 |
495 |
1.12% |
||||
Repurchase agreements & Other |
20,582 |
53 |
1.03% |
15,765 |
14 |
0.36% |
||||
Advances from Federal Home Loan Bank |
30,000 |
95 |
1.27% |
16,000 |
82 |
2.05% |
||||
Trust preferred securities |
10,310 |
54 |
2.10% |
20,620 |
330 |
6.40% |
||||
Total interest bearing liabilities |
516,448 |
685 |
0.53% |
494,252 |
939 |
0.76% |
||||
Non interest bearing demand |
96,350 |
83,467 |
||||||||
Other liabilities |
10,030 |
11,504 |
||||||||
Total liabilities |
622,828 |
589,223 |
||||||||
Equity |
64,846 |
55,925 |
||||||||
Total liabilities and equity |
$ |
687,674 |
$ |
645,148 |
||||||
Net interest income (tax equivalent basis) |
$ 5,599 |
$ 5,096 |
||||||||
Net interest income as a percent of average interest-earning assets |
3.73% |
3.57% |
||||||||
Twelve Months Ended December 31, 2014 |
Twelve Months Ended December 31, 2013 |
|||||||||
Average |
Average |
Average |
Average |
|||||||
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
Taxable securities |
$ |
69,795 |
1,198 |
1.72% |
$ |
78,520 |
1,244 |
1.58% |
||
Nontaxable securities |
18,051 |
1,074 |
5.95% |
17,267 |
1,065 |
6.17% |
||||
Federal funds sold |
- |
- |
N/A |
- |
- |
N/A |
||||
Loans, net |
501,486 |
22,524 |
4.49% |
469,603 |
22,936 |
4.88% |
||||
Total earning assets |
589,332 |
24,796 |
4.21% |
565,390 |
25,245 |
4.47% |
||||
Cash and due from banks |
24,665 |
20,827 |
||||||||
Allowance for loan losses |
(6,785) |
(6,962) |
||||||||
Premises and equipment |
13,725 |
14,635 |
||||||||
Other assets |
51,340 |
46,030 |
||||||||
Total assets |
$ |
672,277 |
$ |
639,920 |
||||||
Liabilities |
||||||||||
Savings and interest bearing demand |
$ |
275,188 |
105 |
0.04% |
$ |
262,954 |
136 |
0.05% |
||
Time deposits |
171,399 |
1,879 |
1.10% |
180,154 |
2,095 |
1.16% |
||||
Repurchase agreements & Other |
18,764 |
91 |
0.48% |
13,085 |
58 |
0.44% |
||||
Advances from Federal Home Loan Bank |
24,294 |
334 |
1.37% |
18,551 |
339 |
1.83% |
||||
Trust preferred securities |
17,448 |
1,071 |
6.14% |
20,620 |
1,407 |
6.82% |
||||
Total interest bearing liabilities |
507,093 |
3,480 |
0.69% |
495,364 |
4,035 |
0.81% |
||||
Non interest bearing demand |
88,973 |
78,540 |
||||||||
Other liabilities |
16,025 |
11,316 |
||||||||
Total liabilities |
612,091 |
585,220 |
||||||||
Equity |
60,186 |
54,700 |
||||||||
Total liabilities and equity |
$ |
672,277 |
$ |
639,920 |
||||||
Net interest income (tax equivalent basis) |
$ 21,316 |
$ 21,210 |
||||||||
Net interest income as a percent of average interest-earning assets |
3.62% |
3.75% |
SOURCE SB Financial Group, Inc.
Related Links
http://www.yoursbfinancial.com
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article