SB Financial Group, Inc. Announces Fourth-Quarter and Full-Year 2015 Results
23% year-over-year GAAP earnings growth and 8% loan growth
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 |
|||
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 |
|||
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 |
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 & |
$ 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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