Press Release

SB Financial Group, Inc. Announces First Quarter 2019 Results

Company Release - 4/18/2019 9:00 AM ET

DEFIANCE, Ohio, April 18, 2019 /PRNewswire/ -- SB Financial Group, Inc. (NASDAQ: SBFG) ("SB Financial" or the "Company"), a diversified financial services company providing full-service community banking, mortgage banking and wealth management, today reported earnings for the first quarter ended March 31, 2019.

First quarter 2019 highlights over prior year first quarter include:

  • Net income of $2.2 million; adjusted net income of $2.8 million, up $0.3 million or 13.6 percent
  • Diluted EPS of $0.28; adjusted diluted EPS of $0.35, flat to the prior year
  • Mortgage origination volume of $51.4 million, a decrease of $7.1 million, or 12.1 percent

First quarter 2019 trailing twelve-month highlights include:

  • Loan growth of $75.3 million, or 10.6 percent
  • Deposit growth of $78.9 million, or 10.5 percent
  • Mortgage origination volume of $335.0 million, an increase of $17.4 million, or 5.5 percent; servicing portfolio of $1.09 billion, up $89.3 million, or 8.9 percent

 

Highlights

Three Months Ended

($ in thousands, except per share & ratios)

Mar. 2019

Mar. 2018

% Change

Operating revenue 

$11,340

$11,943

-5.0%

Interest income 

10,498

8,851

18.6%

Interest expense

2,158

1,151

87.5%

Net interest income 

8,340

7,700

8.3%

Provision for loan losses

-

300

-100.0%

Noninterest income

3,000

4,243

-29.3%

Noninterest expense

8,626

8,627

0.0%

Net income 

2,226

2,453

-9.3%

Earnings per diluted share

0.28

0.35

-20.0%

Return on average assets

0.89%

1.08%

-17.6%

Return on average equity

6.76%

9.03%

-25.1%





Non-GAAP Measures




Adjusted net income

$2,785

$2,453

13.5%

Adjusted diluted EPS

0.35

0.35

0.0%

Net interest margin (FTE)

3.81%

3.86%

-1.3%

 

"SB Financial's first quarter GAAP results were impacted by the inversion of the rate curve, resulting in an impairment to our mortgage servicing rights.  Adjusting for that temporary event, net income was up over 13 percent," said Mark A. Klein, Chairman, President, and CEO of SB Financial.  "Organic balance sheet loan and deposit growth of $11 and $25 million, respectively, offset a softer mortgage origination quarter."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was down 5.0 percent from the first quarter of 2018, and down 9.6 percent to the linked quarter. However, when adjusting for the Originated Mortgage Servicing Rights (OMSR) temporary impairment, total revenue was up 0.9 percent from the prior year.

  • Net interest income was up 8.3 percent from the year-ago quarter, but down 3.1 percent from the linked quarter.
  • Net interest margin (FTE) was down 5 basis point from the year-ago quarter and down 15 basis points from the linked quarter.
  • Noninterest income for the quarter was down from both year ago and linked quarter by 29 and 24 percent, respectively. Adjusting for the temporary OMSR impairment, noninterest income would be down 13 and 6 percent, respectively.

Mortgage Loan Business

Mortgage loan originations for the first quarter of 2019 were $51.4 million, down $7.1 million, or 12.1 percent, from the year-ago quarter.  Total sales of originated loans were $43.5 million, up $2.9 million, or 7.1 percent from the year-ago quarter.

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $0.9 million for the first quarter of 2019, compared to $1.6 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the first quarter of 2019 was a negative $0.7 million, compared to a positive adjustment of $0.1 million for the first quarter of 2018.  The temporary impairment for the quarter was due to the inversion of the yield curve and the rapid acceleration of pre-payment speed assumptions.  The aggregate servicing valuation impairment ended the quarter at $0.9 million.  The servicing portfolio at March 31, 2019, was $1.09 billion, up $0.90 million, or 8.9 percent, from $1.0 billion at March 31, 2018.

Mr. Klein noted, "We experienced a slowing mortgage origination market this quarter as market factors and decreased inventory impacted our results.  We continue to believe our regional production model and geographic diversity will lead to greater market presence." 

Mortgage Banking






($ in thousands)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Mortgage originations

$51,417

$78,829

$95,289

$109,466

$58,485

Mortgage sales

43,472

60,345

80,555

79,162

40,589

Mortgage servicing portfolio

1,094,060

1,084,678

1,066,402

1,030,780

1,004,728

Mortgage servicing rights

10,838

11,347

11,129

10,634

10,195













Mortgage servicing revenue:






Loan servicing fees

682

673

653

636

625

OMSR amortization

(254)

(300)

(318)

(367)

(246)

Net administrative fees

428

373

335

269

379

OMSR valuation adjustment

(708)

(68)

(62)

(22)

92

Net loan servicing fees

(280)

305

273

247

471

Gain on sale of mortgages

1,192

1,646

2,066

2,058

1,100

Mortgage banking revenue, net

$912

$1,951

$2,339

$2,305

$1,571

 

Noninterest Income and Noninterest Expense

SB Financial's noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales and the sale of Small Business Administration (SBA) and US Department of Agriculture (USDA) loans.  SBA and USDA activity for the quarter consisted of total origination volume of $3.0 million with sales volume of $2.2 million resulting in gains of $0.3 million.  Wealth management assets under the Company's care stood at $462.6 million as of March 31, 2019, up $39.3 million from the linked quarter and up $50.9 million from the year ago quarter.  For the first quarter of 2019, noninterest income as a percentage of total revenue was 26.5 percent (30.8 percent when adjusting for the OMSR impairment).  Results included revenue from the Company's newly acquired Title Agency, which will further add to our revenue diversity throughout 2019. 

For the first quarter of 2019, noninterest expense of $8.6 million was flat to the prior year and down $0.2 million from the linked quarter.  Lower mortgage production volumes reduced compensation expense compared to the prior year. 

Mr. Klein stated, "Fee income levels from mortgage lending were down this quarter and the OMSR temporary impairment had a significant impact on our operating results.  We closed on our Title Agency acquisition in March, and we are excited for the opportunities that this new revenue stream will offer.  We continue to pay close attention to expenses and are committed to measured expense growth, in line with revenue increases."

Noninterest Income / Noninterest Expense 





($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Noninterest Income (NII)

$3,000

$3,930

$4,202

$4,249

$4,243

NII / Total Revenue

26.5%

31.3%

33.0%

33.5%

35.5%

NII / Average Assets

1.2%

1.6%

1.8%

1.8%

1.9%







Noninterest Expense (NIE)

$8,626

$8,852

$8,789

$8,579

$8,627

Efficiency Ratio

76.1%

70.6%

69.0%

67.7%

72.2%

NIE / Average Assets

3.5%

3.6%

3.7%

3.7%

3.8%

Net Noninterest Expense

-2.3%

-2.0%

-1.9%

-1.9%

-1.9%

 

Balance Sheet

Total assets as of March 31, 2019, were $1.0 billion, up $95.6 million, or 10.3 percent, from a year ago.  Total equity as of March31, 2019, was $131.5 million, up 7.0 percent from a year ago, and comprised 12.9 percent of total assets. 

Total loans held for investment were $782.5 million at March 31, 2019, up $75.3 million, or 10.7 percent, from March 31, 2018.  Residential real estate loans were up $35.7 million, or 23.5 percent, with commercial loans rising $28.6 million, or 26.6 percent.

The investment portfolio of $99.9 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 9.8 percent of assets at March 31, 2019, and was up 4.4 percent from the year-ago period.  Deposit balances of $827.7 million at March31, 2019, increased by $78.9 million or 10.5 percent, since March31, 2018.  Growth from the prior year included $7.6 million in checking and $71.3 million in savings and time deposit balances.

Mr. Klein continued, "Both loan and deposit volumes were up over 10 percent from the prior year and grew 14 and 31 percent for the quarter, respectively.  Nonperforming assets to total assets ended the quarter at 42 basis points, up just 4 basis points from the prior year."

Loan Balance







($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Annual
Growth

Commercial

$136,201

$127,640

$119,810

$115,140

$107,579

$28,622

% of Total

17.4%

16.5%

15.5%

15.3%

15.2%

26.6%

Commercial RE

343,900

340,791

356,563

350,266

338,586

5,314

% of Total

43.9%

44.2%

46.2%

46.5%

47.9%

1.6%

Agriculture

50,620

52,012

52,814

52,466

50,266

354

% of Total

6.5%

6.7%

6.8%

7.0%

7.1%

0.7%

Residential RE

187,548

187,104

178,033

172,773

151,820

35,728

% of Total

24.0%

24.2%

23.1%

22.9%

21.5%

23.5%

Consumer & Other

64,254

64,336

64,478

62,640

58,956

5,298

% of Total

8.2%

8.3%

8.4%

8.3%

8.3%

9.0%

Total Loans

$782,523

$771,883

$771,698

$753,285

$707,207

$75,316

Total Growth Percentage






10.6%















Deposit Balance







($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Annual
Growth

Non-Int DDA

$146,327

$144,592

$134,747

$131,125

$132,919

$13,408

% of Total

17.7%

18.0%

17.1%

17.4%

17.8%

10.1%

Interest DDA

132,101

130,628

130,897

129,486

137,893

(5,792)

% of Total

16.0%

16.3%

16.6%

17.2%

18.4%

-4.2%

Savings

115,272

104,444

114,213

118,108

116,820

(1,548)

% of Total

13.8%

12.9%

14.4%

15.7%

15.6%

-1.3%

Money Market

175,334

181,426

170,190

151,228

143,679

31,655

% of Total

21.2%

22.6%

21.6%

20.1%

19.2%

22.0%

Certificates

258,624

241,462

239,379

222,932

217,484

41,140

% of Total

31.2%

30.1%

30.3%

29.6%

29.0%

18.9%

Total Deposits

$827,658

$802,552

$789,426

$752,879

$748,795

$78,863

Total Growth Percentage






10.5%








 

Asset Quality

SB Financial maintained its high-performance among its peers in asset quality levels for the quarter, reporting nonperforming assets of $4.3 million as of March 31, 2019, up $0.8 million, or 22.3 percent, from the year-ago quarter.  SB Financial's nonperforming assets to total assets ratio of 0.42 percent is in the top quartile of its 65-bank peer group.  The coverage of problem loans by the loan loss allowance was at 204 percent at March 31, 2019, down from 239 percent at March 31, 2018.

Summary of Nonperforming Assets






Annual
Growth

($ in thousands, except ratios)

Mar. 2019

Dec. 2018

Sep. 2018

Jun. 2018

Mar. 2018

Commercial & Agriculture

$998

$731

$360

$33

$35

$963

% of Total Com./Ag. loans

0.53%

0.41%

0.21%

0.02%

0.02%

N/M

Commercial RE 

212

218

228

234

487

(275)

% of Total CRE loans

0.06%

0.06%

0.06%

0.07%

0.14%

-56.5%

Residential RE

1,612

1,738

1,541

1,634

1,714

(102)

% of Total Res. RE loans

0.86%

0.93%

0.87%

0.95%

1.13%

-6.0%

Consumer & Other

325

219

252

221

85

240

% of Total Con./Oth. loans  

0.51%

0.34%

0.39%

0.35%

0.14%

N/M

Total Nonaccruing Loans 

3,147

2,906

2,381

2,122

2,321

826

% of Total loans

0.40%

0.38%

0.31%

0.28%

0.33%

35.6%

Accruing Restructured Loans

827

928

940

1,101

1,115

(288)

Total Growth (%)






-25.8%

Total Nonaccruing & Restructured Loans

3,974

3,834

3,321

3,223

3,436

538

% of Total loans

0.51%

0.50%

0.43%

0.43%

0.49%

15.7%

Foreclosed Assets

313

131

105

16

70

243

Total Growth (%)






347.1%

Total Nonperforming Assets

$4,287

$3,965

$3,426

$3,239

$3,506

$781

% of Total assets

0.42%

0.40%

0.35%

0.34%

0.38%

22.3%

 

Webcast and Conference Call

The Company will hold a related conference call and webcast on April 18, 2019, at 5:00 p.m. EDT.  Interested parties may access the conference call by dialing 1-888-338-9469.  The webcast can be accessed at 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 for the State Bank & Trust Company (State Bank). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 20 offices; 19 in nine Ohio counties and one in Fort Wayne, Indiana, and 26 full-service ATMs.  The Company has seven loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan.  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 2018, SB Financial was ranked #72 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").

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

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). Non-GAAP financial measures, specifically tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company's management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders.  Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Investor Contact Information: 
Anthony V. Cosentino
Executive Vice President and 
Chief Financial Officer
Tony.Cosentino@YourStateBank.com

 

 

SB FINANCIAL GROUP, INC.  

CONSOLIDATED BALANCE SHEETS - (Unaudited)





















March


December


September


June


March





($ in thousands)


2019


2018


2018


2018


2018

















ASSETS













Cash and due from banks


$       62,962


$       48,363


$       45,515


$       24,413


$       48,329



Available-for-sale securities


95,802


90,969


84,114


89,911


91,987



Loans held for sale


4,346


4,445


6,888


7,551


8,893



Loans, net of unearned income


782,523


771,883


771,698


753,285


707,207



Allowance for loan losses


(8,121)


(8,167)


(8,489)


(8,494)


(8,219)



Premises and equipment, net


23,270


22,084


21,900


21,683


21,776



Federal Reserve and FHLB Stock, at cost


4,123


4,123


4,123


3,748


3,748



Foreclosed assets held for sale, net


313


131


105


16


70



Interest receivable


3,123


2,822


2,433


2,000


1,925



Goodwill and other intangibles


17,838


16,401


16,404


16,406


16,409



Cash value of life insurance


16,966


16,834


16,745


16,656


16,567



Mortgage servicing rights


10,838


11,365


11,129


10,633


10,196



Other assets


7,288


5,575


6,615


6,977


6,753




















Total assets


$  1,021,271


$     986,828


$     979,180


$     944,785


$     925,641















































LIABILITIES AND SHAREHOLDERS' EQUITY













Deposits














Non interest bearing demand


$     146,327


$     144,592


$     134,747


$     131,125


$     132,919




Interest bearing demand


132,101


130,628


130,897


129,486


137,893




Savings


115,272


104,444


114,213


118,108


116,820




Money market


175,334


181,426


170,190


151,228


143,679




Time deposits


258,624


241,462


239,379


222,932


217,484




















Total deposits


827,658


802,552


789,426


752,879


748,795


















Repurchase agreements


12,255


15,184


15,539


18,191


14,505



Federal Home Loan Bank advances


24,000


16,000


24,500


26,500


18,500



Trust preferred securities


10,310


10,310


10,310


10,310


10,310



Interest payable


1,123


909


891


685


633



Other liabilities


14,419


11,438


11,405


11,116


9,999




















Total liabilities


889,765


856,393


852,071


819,681


802,742


















Shareholders' Equity














Preferred stock


13,978


13,979


13,979


13,983


13,983




Common stock


40,486


40,485


40,485


40,481


40,481




Additional paid-in capital


15,143


15,226


15,160


15,098


15,189




Retained earnings


65,438


64,012


61,854


59,503


57,162




Accumulated other comprehensive loss


124


(552)


(1,654)


(1,240)


(941)




Treasury stock


(3,663)


(2,715)


(2,715)


(2,721)


(2,975)




















Total equity


131,506


130,435


127,109


125,104


122,899




















Total liabilities and shareholders' equity


$  1,021,271


$     986,828


$     979,180


$     944,785


$     925,641


 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)















($ in thousands, except per share & ratios)


At and for the Three Months Ended




















March


December


September


June


March


Interest income



2019


2018


2018


2018


2018



Loans













  Taxable 


$        9,427


$        9,661


$        9,499


$        8,968


$        8,140



  Tax exempt


62


55


42


36


21



Securities













  Taxable 


911


822


610


613


573



  Tax exempt


98


100


107


115


117


















Total interest income


10,498


10,638


10,258


9,732


8,851
















Interest expense














Deposits


1,918


1,776


1,472


1,091


975



Repurchase agreements & other


26


10


11


6


10



Federal Home Loan Bank advances


100


131


140


110


79



Trust preferred securities


114


107


106


101


87


















Total interest expense


2,158


2,024


1,729


1,308


1,151






























Net interest income


8,340


8,614


8,529


8,424


7,700

















Provision for loan losses 


-


-


-


300


300
















Net interest income after provision












  for loan losses



8,340


8,614


8,529


8,124


7,400
















Noninterest income














Wealth Management Fees


734


717


705


710


739



Customer service fees


631


679


672


675


644



Gain on sale of mtg. loans & OMSR


1,192


1,646


2,066


2,058


1,100



Mortgage loan servicing fees, net


(280)


305


273


247


471



Gain on sale of non-mortgage loans


327


295


125


150


660



Title insurance income


19


-


-


-


-



Net gain on sales of securities


-


-


70


-


-



Gain/(loss) on sale of assets


(2)


14


-


60


(39)



Other


379


274


291


349


668


















Total noninterest income


3,000


3,930


4,202


4,249


4,243
















Noninterest expense













Salaries and employee benefits


4,902


5,108


5,372


5,201


4,939



Net occupancy expense


645


600


588


560


649



Equipment expense


711


756


667


637


829



Data processing fees


443


466


489


418


438



Professional fees


617


532


393


504


419



Marketing expense


239


262


197


204


221



Telephone and communication


115


121


124


128


122



Postage and delivery expense


84


66


83


63


74



State, local and other taxes


255


180


177


176


186



Employee expense


153


283


243


220


166



Other expenses


462


478


456


468


584


















Total noninterest expense


8,626


8,852


8,789


8,579


8,627






























Income before income tax expense


2,714


3,692


3,942


3,794


3,016

















Income tax expense


488


732


824


687


563
















Net income 




$        2,226


$        2,960


$        3,118


$        3,107


$        2,453
















Preferred Share Dividends 


244


243


244


244


244
















Net income available to common shareholders


1,982


2,717


2,874


2,863


2,209
















Common share data:













Basic earnings per common share


$          0.31


$          0.42


$          0.45


$          0.45


$          0.40

















Diluted earnings per common share


$          0.28


$          0.37


$          0.39


$          0.40


$          0.35
















Average shares outstanding (in thousands):













Basic:


6,482


6,503


6,503


6,489


5,519



Diluted: 


7,994


8,030


8,022


8,003


7,055


 

 

SB FINANCIAL GROUP, INC.

                                                  CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                                               













($ in thousands, except per share & ratios)


At and for the Three Months Ended
















March


December


September


June


March


SUMMARY OF OPERATIONS


2018


2018


2018


2018


2018














   Net interest income 


$8,340


$8,614


$8,529


$8,424


$7,700


         Tax-equivalent adjustment


43


41


40


40


37


   Tax-equivalent net interest income 


8,383


8,655


8,569


8,464


7,737


   Provision for loan loss 


-


-


-


300


300


   Noninterest income


3,000


3,930


4,202


4,249


4,243


   Total operating revenue


11,340


12,544


12,731


12,673


11,943


   Noninterest expense


8,626


8,852


8,789


8,579


8,627


   Pre-tax pre-provision income


2,714


3,692


3,942


4,094


3,316


   Pretax income


2,714


3,692


3,942


3,794


3,016


   Net income 


2,226


2,960


3,118


3,107


2,453


   Income available to common shareholders 


1,982


2,717


2,874


2,863


2,209














PER SHARE INFORMATION:












   Basic earnings per share


$0.31


$0.42


$0.45


$0.45


$0.40


   Diluted earnings per share


0.28


0.37


0.39


0.40


0.35


   Common dividends


0.085


0.085


0.080


0.080


0.075


   Book value per common share


16.57


16.36


15.94


15.73


15.49


   Tangible book value per common share (TBV)


15.43


15.39


14.87


14.57


14.27


   Fully converted TBV per common share


14.32


14.30


13.88


13.66


13.42


   Market price per common share


18.02


16.45


20.35


20.32


18.51


   Market price per preferred share


19.00


17.90


20.25


19.82


18.20


   Market price to tangible book value


116.8%


106.9%


136.8%


139.5%


129.7%


   Market price to fully converted TBV


125.8%


115.0%


146.6%


148.7%


137.9%


   Market price to trailing 12 month EPS


12.6


11.0


11.5


11.2


10.3














PERFORMANCE RATIOS:












   Return on average assets (ROAA)


0.89%


1.19%


1.30%


1.35%


1.08%


   Pre-tax pre-provision ROAA


1.08%


1.48%


1.64%


1.78%


1.46%


   Return on average equity


6.76%


9.21%


9.89%


10.02%


9.03%


   Return on average tangible equity


8.83%


12.06%


13.02%


13.28%


12.54%


   Efficiency ratio 


76.05%


70.55%


69.01%


67.67%


72.22%


   Earning asset yield


4.78%


4.86%


4.75%


4.76%


4.41%


   Cost of interest bearing liabilities


1.20%


1.15%


1.00%


0.80%


0.71%


   Net interest margin


3.79%


3.93%


3.95%


4.12%


3.84%


   Tax equivalent effect


0.02%


0.02%


0.01%


0.02%


0.02%


   Net interest margin, tax equivalent 


3.81%


3.95%


3.96%


4.14%


3.86%


   Non interest income/Average assets


1.20%


1.58%


1.75%


1.84%


1.87%


   Non interest expense/Average assets


3.45%


3.56%


3.65%


3.72%


3.81%


   Net noninterest expense/Average assets


2.25%


1.98%


1.91%


1.88%


1.93%














ASSET QUALITY RATIOS:












   Gross charge-offs


$60


$322


$12


$54


$19


   Recoveries


13


1


6


29


9


   Net charge-offs


47


321


6


25


10


   Nonaccruing loans/ Total loans


0.40%


0.38%


0.31%


0.28%


0.33%


   Nonperforming loans/ Total loans


0.51%


0.50%


0.43%


0.43%


0.49%


   Nonperforming assets/ Loans & OREO


0.55%


0.51%


0.44%


0.43%


0.50%


   Nonperforming assets/ Total assets


0.42%


0.40%


0.35%


0.34%


0.38%


   Allowance for loan loss/ Nonperforming loans


204.35%


213.02%


255.62%


263.54%


239.20%


   Allowance for loan loss/ Total loans


1.04%


1.06%


1.10%


1.13%


1.16%


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


0.02%


0.17%


0.00%


0.01%


0.01%


   Loan loss provision/ Net charge-offs


0.00%


0.00%


0.00%


1200.00%


3000.00%














CAPITAL & LIQUIDITY RATIOS:












   Loans/ Deposits


94.55%


96.18%


97.75%


100.05%


94.45%


   Equity/ Assets


12.88%


13.22%


12.98%


13.24%


13.28%


   Tangible equity/ Tangible assets


9.93%


10.31%


10.05%


10.20%


10.17%


   Tangible equity adjusted for conversion


11.33%


11.75%


11.50%


11.71%


11.71%


   Common equity tier 1 ratio (Bank) - 3/19 est.


12.87%


12.57%


12.16%


11.91%


12.23%














END OF PERIOD BALANCES












   Total assets


$1,021,271


$986,828


$979,180


$944,785


$925,641


   Total loans 


782,523


771,883


771,698


753,285


707,207


   Deposits


827,658


802,552


789,426


752,879


748,795


   Stockholders equity


131,506


130,435


127,109


125,104


122,899


   Goodwill & intangibles


17,838


16,401


16,404


16,406


16,409


   Preferred equity


13,978


13,979


13,979


13,983


13,983


   Tangible equity


99,690


100,055


96,726


94,715


92,507


   Mortgage servicing portfolio


1,094,060


1,084,678


1,066,402


1,030,780


1,004,728


   Wealth/Brokerage assets under care


462,580


423,289


412,218


407,592


411,654


   Total assets under care


2,577,911


2,494,795


2,457,800


2,383,157


2,342,023


   Full-time equivalent employees (actual)


256


250


250


241


240


   Period end basic shares outstanding


6,460


6,503


6,503


6,502


6,483


   Period end outstanding (Series A Converted)


1,475


1,472


1,470


1,453


1,453


   Market capitalization (all)


144,898


133,824


162,711


161,851


147,300














AVERAGE BALANCES












   Total assets


$1,001,282


$994,977


$962,369


$922,355


$906,281


   Total earning assets 


879,394


875,747


864,490


817,270


802,358


   Total loans 


775,280


775,060


770,948


724,710


711,733


   Deposits


812,190


803,928


769,266


739,877


738,867


   Stockholders equity


131,691


128,539


126,144


123,990


108,662


   Intangibles


16,880


16,403


16,405


16,407


16,410


   Preferred equity


13,979


13,979


13,983


13,983


13,983


   Tangible equity


100,832


98,157


95,756


93,600


78,269


   Average basic shares outstanding


6,482


6,503


6,503


6,489


5,519


   Average diluted shares outstanding


7,994


8,030


8,022


8,003


7,055


 

 

SB FINANCIAL GROUP, INC.


Rate Volume Analysis - (Unaudited)


At and for the Three Months Ended March 31, 2019 and 2018









($ in thousands)


Three Months Ended Mar. 31, 2019



Three Months Ended Mar. 31, 2018




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities


$            94,623

$                 911

3.85%



$            77,802

$                 573

2.95%


Nontaxable securities


9,491

98

4.13%



12,823

117

3.66%


Loans, net


775,280

9,489

4.90%



711,733

8,161

4.59%













       Total earning assets


879,394

10,498

4.78%



802,358

8,851

4.41%













Cash and due from banks


56,976





38,145




Allowance for loan losses


(8,284)





(8,043)




Premises and equipment


22,650





21,307




Other assets


50,546





52,514















      Total assets


$        1,001,282





$           906,281














Liabilities











Savings, MMDA and interest bearing demand


$           422,649

$                 722

0.68%



$           389,809

$                 256

0.26%


Time deposits


249,655

1,196

1.92%



214,645

719

1.34%


Repurchase agreements & other


17,704

26

0.59%



18,124

10

0.22%


Advances from Federal Home Loan Bank


16,267

100

2.46%



18,500

79

1.71%


Trust preferred securities


10,310

114

4.42%



10,310

87

3.38%













      Total interest bearing liabilities


716,585

2,158

1.20%



651,388

1,151

0.71%













Non interest bearing demand


139,886

-




134,413

-














      Total funding


856,471


1.01%



785,801


0.59%













Other liabilities


13,120





11,818















      Total liabilities


869,591





797,619















Equity


131,691





108,662















      Total liabilities and equity


$        1,001,282





$           906,281















Net interest income



$              8,340





$              7,700














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

3.79%





3.84%













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

3.81%





3.86%


 - Computed on a fully tax equivalent (FTE) basis









 

 


Non-GAAP reconciliation


 1st Quarter 2019 










 3 Months ended 


 3 Months ended 


($ in thousands, except per share & ratios)


 March 31, 2019 


 March 31, 2018 








Total Revenues


$            11,340


$            11,943


 Adjustment to remove temporary impairment*


708


-








Adjusted Total Revenues


$            12,048


$            11,943














Income before Income Taxes


$              2,714


$              3,016


 Adjustment to remove temporary impairment


708


-








Adjusted Income before Income Taxes


$              3,422


$              3,016














Provision for Income Taxes


$                 488


$                 563


 Adjustment to remove temporary impairment


149


-








Adjusted Provision for Income Taxes


$                 637


$                 563














Net Income


$              2,226


$              2,453


 Adjustment to remove temporary impairment


559


-








Adjusted Net Income


$              2,785


$              2,453














Diluted Earnings per Share


$                0.28


$                0.35


 Adjustment to remove temporary impairment


0.07


-








Adjusted Diluted Earnings per Share


$                0.35


$                0.35














Return on Average Assets


0.89%


1.08%


 Adjustment to remove temporary impairment


0.06%


-








Adjusted Return on Average Assets


0.95%


1.08%








* temporary valuation adjustment to the 






Company's mortgage servicing rights





 

Cision View original content:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-first-quarter-2019-results-300834603.html

SOURCE SB Financial Group, Inc.