Press Release

SB Financial Group, Inc. Announces Third-Quarter and Nine-Month 2019 Earnings

Company Release - 10/28/2019 4:15 PM ET

DEFIANCE, Ohio, Oct. 28, 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, wealth management, private client and title insurance services, today reported earnings for the third-quarter and nine months ended September 30, 2019.

Third-quarter 2019 highlights over prior-year third quarter include:

  • Total assets increased to $1.04 billion, up $63.6 million, or 6.5 percent
  • Net income of $3.8 million, up $0.7 million, or 20.7 percent
  • Diluted earnings per share (EPS) of $0.48, up $0.09 per share, or 23.1 percent
  • Tangible book value (TBV) per share increased 9.1 percent to $16.23 per share

Nine months ended September 30, 2019, highlights over prior-year nine months include:

  • Net income of $8.6 million, which is flat to the prior year
  • Net income, adjusted for the mortgage servicing rights impairment of $9.7 million, which is up $1.0 million or 12.1 percent
  • Adjusted EPS of $1.22, which is up $0.08 per share, or 7.0 percent
  • Net interest margin (NIM) of 3.87 percent on a fully tax equivalent basis ("FTE") down 9 basis points

Third quarter 2019, trailing twelve-month highlights include:

  • Loan growth of $51.7 million, or 6.7 percent
  • Deposit growth of $58.5 million, or 7.4 percent
  • Mortgage origination volume of $386.6 million; servicing portfolio of $1.15 billion

 

Highlights

Three Months Ended


Nine Months Ended

($ in thousands, except per share & ratios)

Sep. 2019

Sep. 2018

% Change


Sep. 2019

Sep. 2018

% Change

Operating revenue 

$      14,424

$      12,731

13.3%


$      38,287

$      37,348

2.5%

Interest income 

11,546

10,258

12.6%


33,195

28,840

15.1%

Interest expense

2,488

1,729

43.9%


6,965

4,187

66.3%

Net interest income 

9,058

8,529

6.2%


26,230

24,653

6.4%

Provision for loan losses

300

-

N/M


500

600

-16.7%

Noninterest income

5,366

4,202

27.7%


12,057

12,695

-5.0%

Noninterest expense

9,500

8,789

8.1%


27,234

25,995

4.8%

Net income 

3,762

3,118

20.7%


8,615

8,679

-0.7%

Earnings per diluted share

0.48

0.39

23.1%


1.08

1.14

-5.3%

Return on average assets

1.44%

1.30%

10.8%


1.13%

1.24%

-8.9%

Return on average equity

11.24%

9.89%

13.7%


8.67%

9.75%

-11.1%









Non-GAAP Measures








Adjusted net income

$        3,762

$        3,167

18.8%


$        9,719

$        8,672

12.1%

Adjusted diluted EPS

0.48

0.40

20.0%


1.22

1.14

7.0%

Adjusted return on average assets

1.44%

1.31%

9.9%


1.23%

1.24%

-0.8%

Net interest margin (FTE)

3.93%

3.96%

-0.8%


3.87%

3.96%

-2.3%

 

"This quarter, we delivered record core quarterly earnings of $0.48 per diluted share, which is up 23 percent from the prior year," said Mark A. Klein, Chairman, President and CEO of SB Financial.  "We originated $158 million in residential mortgage loans, also a quarter record, while growing our loan portfolio nearly $9 million."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 13.3 percent from the third quarter of 2018, and up 15.2 percent from the linked quarter.

  • Net interest income was up 6.2 percent from the year-ago quarter, and up 2.6 percent from the linked quarter. 
  • Net interest margin (FTE) was down 3 basis points from the year-ago quarter, but up 5 basis points from the linked quarter.  
  • Noninterest income was up 27.7 percent from the year-ago quarter, and up 45.4 percent from the linked quarter.

Funding costs, primarily from retail deposits have increased from the prior year and from the linked quarter.  Deposit cost of funds for the most recent quarter of 1.06 percent are up from 0.77 percent in the prior-year quarter.  From the linked quarter, deposit cost of funds are up five basis points from 1.01 percent.

Mortgage Loan Business

Mortgage loan originations for the third quarter of 2019 were $157.9 million, up $62.6 million, or 65.7 percent, from the year-ago quarter.  Total sales of originated loans were $125.4 million, up $44.8 million, or 55.6 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 $2.5 million for the third quarter of 2019, compared to $2.3 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the third quarter of 2019 was zero, compared to a negative adjustment of $0.01 million for the third quarter of 2018.  The aggregate servicing valuation impairment ended the quarter at $1.6 million.  The mortgage servicing portfolio at September 30, 2019, was $1.15 billion, up $0.09 billion, or 8.1 percent, from $1.07 billion at September 30, 2018.

Mr. Klein noted, "Our origination and processing teams achieved record numbers in the quarter as we originated $158 million in volume from nearly 700 clients.  The number of closings in the quarter was higher by 44 percent from the linked quarter and 27 percent higher compared to the prior year third quarter.  We did not book any temporary impairment this quarter, as compared to the $1.4 million we incurred in the first half of 2019.  We are encouraged by current trends and expect the strong volume in the residential business to continue for the remainder of this year."

 

Mortgage Banking






($ in thousands)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Mortgage originations

$     157,947

$       98,447

$       51,417

$       78,829

$       95,289

Mortgage sales

125,386

70,993

43,472

60,345

80,555

Mortgage servicing portfolio

1,153,020

1,112,857

1,094,060

1,084,678

1,066,402

Mortgage servicing rights

10,447

10,264

10,838

11,365

11,129













Mortgage servicing revenue:






Loan servicing fees

709

691

682

673

653

OMSR amortization

(701)

(460)

(254)

(300)

(318)

Net administrative fees

8

231

428

373

335

OMSR valuation adjustment

-

(690)

(708)

(68)

(62)

Net loan servicing fees

8

(459)

(280)

305

273

Gain on sale of mortgages

2,495

1,678

1,192

1,646

2,066

Mortgage banking revenue, net

$         2,503

$         1,219

$           912

$         1,951

$         2,339

 

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, title insurance revenue and the sale of Small Business Administration (SBA) loans.  SBA activity for the quarter consisted of total loan sales of $2.8 million generating gains of $0.3 million.  Wealth management assets under the Company's care stood at $484.3 million as of September 30, 2019, and the title insurance business delivered revenue of $0.4 million.  For the third quarter of 2019, noninterest income as a percentage of total revenue was 37.2 percent, with the YTD percentage at 33.9 percent when adjusted for the impairment. 

For the third quarter of 2019, noninterest expense (NIE) of $9.5 million was up $0.7 million, or 8.1 percent, compared to the same quarter last year.  Compared to the linked quarter, NIE was also up $0.4 million.  Expense growth was the result of higher mortgage commissions and the addition of our title agency.  We continue to add resources of both technology and personnel in order to meet the expanded needs of our operations, information technology and risk management functions.

 

Noninterest Income / Noninterest Expense 





($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Noninterest Income (NII)

$         5,366

$         3,691

$         3,000

$         3,930

$         4,202

NII / Total Revenue

37.2%

29.5%

26.5%

31.3%

33.0%

NII / Average Assets

2.1%

1.5%

1.2%

1.6%

1.8%







Noninterest Expense (NIE)

$         9,500

$         9,108

$         8,626

$         8,852

$         8,789

Efficiency Ratio

65.9%

72.7%

76.1%

70.6%

69.0%

NIE / Average Assets

3.6%

3.6%

3.5%

3.6%

3.7%

Net Noninterest Expense/Avg. Assets

-1.6%

-2.1%

-2.3%

-2.0%

-1.9%

 

Balance Sheet

Total assets as of September 30, 2019, were $1.04 billion, up $63.6 million, or 6.5 percent, from a year ago.  Total equity as of September 30, 2019, was $134.2 million, up 5.6 percent from a year ago, and comprised 12.9 percent of total assets. 

Total loans held for investment were $823.4 million at September 30, 2019, up $51.7 million, or 6.7 percent, from September 30, 2018, and up $8.9 million for the quarter.  From the prior year, commercial loans were up $25.3 million, or 21.1 percent, with residential real estate rising $21.0 million, or 11.8 percent.

The investment portfolio of $81.7 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 7.8 percent of assets at September 30, 2019.  Deposit balances of $848.0 million at September 30, 2019, increased by $58.5 million, or 7.4 percent, since September 30, 2018.  Growth from the prior year included $18.9 million in checking and $39.6 million in savings, money market and time deposit balances.

Mr. Klein stated, "We took payoffs in our commercial real estate portfolio due to competitive pressure on loan pricing.  We expect to see additional challenges in matching pricing over the coming quarters and continue to experience peer- leading metrics in asset quality, despite a small number of SBA credits that weakened in the quarter."   

 

Loan Balances







($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Annual Growth

Commercial

$       145,147

$       143,798

$       136,201

$       127,640

$       119,810

$         25,337

% of Total

17.6%

17.7%

17.4%

16.5%

15.5%

21.1%

Commercial RE

362,580

360,491

343,900

340,791

356,563

6,017

% of Total

44.0%

44.2%

43.9%

44.2%

46.2%

1.7%

Agriculture

51,946

54,317

50,620

52,012

52,814

(868)

% of Total

6.3%

6.7%

6.5%

6.7%

6.8%

-1.6%

Residential RE

199,036

191,642

187,548

187,104

178,033

21,003

% of Total

24.2%

23.5%

24.0%

24.2%

23.1%

11.8%

Consumer & Other

64,658

64,261

64,254

64,336

64,478

180

% of Total

7.9%

7.9%

8.2%

8.3%

8.4%

0.3%

Total Loans

$       823,367

$       814,509

$       782,523

$       771,883

$       771,698

$         51,669

Total Growth Percentage






6.7%















Deposit Balances







($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Annual Growth

Non-Int DDA

$       152,932

$       141,216

$       146,327

$       144,592

$       134,747

$         18,185

% of Total

18.0%

16.8%

17.7%

18.0%

17.1%

13.5%

Interest DDA

131,655

129,710

132,101

130,628

130,897

758

% of Total

15.5%

15.5%

16.0%

16.3%

16.6%

0.6%

Savings

121,991

118,931

115,272

104,444

114,213

7,778

% of Total

14.3%

14.1%

13.8%

12.9%

14.4%

6.8%

Money Market

173,237

175,455

175,334

181,426

170,190

3,047

% of Total

20.4%

20.9%

21.2%

22.6%

21.6%

1.8%

Time Deposits

268,139

274,062

258,624

241,462

239,379

28,760

% of Total

31.6%

32.7%

31.2%

30.1%

30.3%

12.0%

Total Deposits

$       847,954

$       839,374

$       827,658

$       802,552

$       789,426

$         58,528

Total Growth Percentage






7.4%

 

Asset Quality

SB Financial's nonperforming assets to total assets ratio of 0.44 percent continues to be in the top quartile of its 65-bank peer group.  The coverage of non performing loans by the loan loss allowance was at 207 percent at September 30, 2019, down from 256 percent at September 30, 2018.

 

Nonperforming Assets






Annual
Change

($ in thousands, except ratios)

Sep. 2019

Jun. 2019

Mar. 2019

Dec. 2018

Sep. 2018

Commercial & Agriculture

$             834

$             674

$             998

$             731

$             360

$             474

% of Total Com./Ag. loans

0.42%

0.34%

0.53%

0.41%

0.21%

131.7%

Commercial RE 

262

208

212

218

228

34

% of Total CRE loans

0.07%

0.06%

0.06%

0.06%

0.06%

14.9%

Residential RE

1,763

1,768

1,612

1,738

1,541

222

% of Total Res. RE loans

0.89%

0.92%

0.86%

0.93%

0.87%

14.4%

Consumer & Other

416

456

325

219

252

164

% of Total Con./Oth. loans  

0.64%

0.71%

0.51%

0.34%

0.39%

65.1%

Total Nonaccruing Loans 

3,275

3,106

3,147

2,906

2,381

894

% of Total loans

0.40%

0.38%

0.40%

0.38%

0.31%

37.5%

Accruing Restructured Loans

825

814

827

928

940

(115)

Total Change (%)






-12.2%

Total Nonaccruing & Restructured Loans

4,100

3,920

3,974

3,834

3,321

779

% of Total loans

0.50%

0.48%

0.51%

0.50%

0.43%

23.5%

Foreclosed Assets

489

530

313

131

105

384

Total Change (%)






365.7%

Total Nonperforming Assets

$          4,589

$          4,450

$          4,287

$          3,965

$          3,426

$          1,163

% of Total assets

0.44%

0.43%

0.42%

0.40%

0.35%

33.9%

Webcast and Conference Call

The Company will hold a related conference call and webcast on October 29, 2019, at 9:30 a.m. EDT.  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 for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). 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 25 full-service ATMs.  State Bank has seven loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan.  Peak Title provides title insurance and opinions throughout the Tri-State region. 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 2019, SB Financial was ranked #94 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

In addition to results presented in accordance with GAAP, this release contains certain non-GAAP financial measures. Management believes that including certain non-GAAP financial measures will provide 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.

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

 

 



SB FINANCIAL GROUP, INC.  



CONSOLIDATED BALANCE SHEETS - (Unaudited)




















September


June


March


December


September




($ in thousands)


2019


2019


2019


2018


2018















ASSETS












Cash and due from banks


$       49,824


$       42,786


$       62,962


$       48,363


$       45,515


Available-for-sale securities


77,029


85,261


95,802


90,969


84,114


Loans held for sale


13,655


9,579


4,346


4,445


6,888


Loans, net of unearned income


823,367


814,509


782,523


771,883


771,698


Allowance for loan losses


(8,492)


(8,306)


(8,121)


(8,167)


(8,489)


Premises and equipment, net


23,898


23,150


23,270


22,084


21,900


Federal Reserve and FHLB Stock, at cost


4,648


4,648


4,123


4,123


4,123


Foreclosed assets held for sale, net


489


530


313


131


105


Interest receivable


3,176


3,209


3,123


2,822


2,433


Goodwill and other intangibles


17,834


17,836


17,838


16,401


16,404


Cash value of life insurance


17,137


17,051


16,966


16,834


16,745


Mortgage servicing rights


10,447


10,264


10,838


11,365


11,129


Other assets


9,749


8,606


7,288


5,575


6,615


















Total assets


$  1,042,761


$  1,029,123


$  1,021,271


$     986,828


$     979,180











































LIABILITIES AND SHAREHOLDERS' EQUITY












Liabilities













Non interest bearing demand


$     152,932


$     141,216


$     146,327


$     144,592


$     134,747



Interest bearing demand


131,655


129,710


132,101


130,628


130,897



Savings


121,991


118,931


115,272


104,444


114,213



Money market


173,237


175,455


175,334


181,426


170,190



Time deposits


268,139


274,062


258,624


241,462


239,379


















Total deposits


847,954


839,374


827,658


802,552


789,426
















Repurchase agreements


14,659


13,968


12,255


15,184


15,539


Federal Home Loan Bank advances


16,000


16,000


24,000


16,000


24,500


Trust preferred securities


10,310


10,310


10,310


10,310


10,310


Interest payable


1,391


1,188


1,123


909


891


Other liabilities


18,201


14,346


14,419


11,438


11,405


















Total liabilities


908,515


895,186


889,765


856,393


852,071
















Shareholders' Equity













Preferred stock


13,241


13,978


13,978


13,979


13,979



Common stock


41,223


40,486


40,486


40,485


40,485



Additional paid-in capital


15,219


15,259


15,143


15,226


15,160



Retained earnings


70,184


67,236


65,438


64,012


61,854



Accumulated other comprehensive income (loss)

900


801


124


(552)


(1,654)



Treasury stock


(6,521)


(3,823)


(3,663)


(2,715)


(2,715)


















Total equity


134,246


133,937


131,506


130,435


127,109


















Total liabilities and shareholders' equity


$  1,042,761


$  1,029,123


$  1,021,271


$     986,828


$     979,180

 

 


SB FINANCIAL GROUP, INC.


CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)



















($ in thousands, except per share & ratios)


At and for the Three Months Ended



Nine Months Ended























September


June


March


December


September



September


September

Interest income



2019


2019


2019


2018


2018



2019


2018


Loans

















  Taxable 


$     10,607


$     10,182


$        9,427


$        9,661


$        9,499



$     30,216


$     26,607


  Tax exempt


82


73


62


55


42



217


99


Securities

















  Taxable 


776


802


911


822


610



2,489


1,795


  Tax exempt


81


94


98


100


107



273


339





















Total interest income


11,546


11,151


10,498


10,638


10,258



33,195


28,840



















Interest expense


















Deposits


2,258


2,092


1,918


1,776


1,472



6,268


3,538


Repurchase agreements & other


22


17


26


10


11



65


27


Federal Home Loan Bank advances


101


100


100


131


140



301


329


Trust preferred securities


107


110


114


107


106



331


293





















Total interest expense


2,488


2,319


2,158


2,024


1,729



6,965


4,187





































Net interest income


9,058


8,832


8,340


8,614


8,529



26,230


24,653




















Provision for loan losses 


300


200


-


-


-



500


600



















Net interest income after provision
















  for loan losses



8,758


8,632


8,340


8,614


8,529



25,730


24,053



















Noninterest income


















Wealth management fees


775


783


734


717


705



2,292


2,155


Customer service fees


729


689


631


679


672



2,049


1,991


Gain on sale of mtg. loans & OMSR


2,495


1,678


1,192


1,646


2,066



5,365


5,224


Mortgage loan servicing fees, net


8


(459)


(280)


305


273



(731)


991


Gain on sale of non-mortgage loans


462


216


327


295


125



1,005


935


Title insurance income


400


308


19


-


-



727


-


Net gain on sales of securities


-


206


-


-


70



206


70


Gain (loss) on sale of assets


1


(5)


(2)


14


-



(6)


21


Other


496


275


379


274


291



1,150


1,308





















Total noninterest income


5,366


3,691


3,000


3,930


4,202



12,057


12,695



















Noninterest expense

















Salaries and employee benefits


5,715


5,305


4,902


5,108


5,372



15,922


15,513


Net occupancy expense


656


627


645


600


588



1,928


1,797


Equipment expense


688


665


711


756


667



2,064


2,133


Data processing fees


499


488


443


466


489



1,430


1,345


Professional fees


571


649


617


532


393



1,837


1,316


Marketing expense


239


246


239


262


197



724


622


Telephone and communication expense

118


112


115


121


124



345


374


Postage and delivery expense


89


81


84


66


83



254


221


State, local and other taxes


243


247


255


180


177



745


538


Employee expense


199


236


153


283


243



588


629


Other expenses


483


452


462


478


456



1,397


1,507





















Total noninterest expense


9,500


9,108


8,626


8,852


8,789



27,234


25,995





































Income before income tax expense


4,624


3,215


2,714


3,692


3,942



10,553


10,753




















Income tax expense


862


588


488


732


824



1,938


2,074



















Net income 




$        3,762


$        2,627


$        2,226


$        2,960


$        3,118



$        8,615


$        8,679



















Preferred share dividends 


233


243


244


243


244



720


732



















Net income available to common shareholders


3,529


2,384


1,982


2,717


2,874



7,895


7,947



















Common share data:

















Basic earnings per common share


$          0.55


$          0.37


$          0.31


$          0.42


$          0.45



$          1.22


$          1.30




















Diluted earnings per common share


$          0.48


$          0.33


$          0.28


$          0.37


$          0.39



$          1.08


$          1.14



















Average shares outstanding (in thousands):

















Basic:


6,397


6,454


6,482


6,503


6,503



6,459


6,106


Diluted: 


7,876


7,967


7,994


8,030


8,022



7,955


7,626

 

 

SB FINANCIAL GROUP, INC.


Rate Volume Analysis - (Unaudited)


At and for the Three and Nine Months Ended September 30, 2019 and 2018









($ in thousands)


Three Months Ended Sep. 30, 2019



Three Months Ended Sep. 30, 2018




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities


$            89,782

$                 776

3.46%



$            82,250

$                 610

2.97%


Nontaxable securities


7,879

81

4.11%



11,292

107

3.79%


Loans, net


829,699

10,689

5.15%



770,948

9,541

4.95%













       Total earning assets


927,360

11,546

4.98%



864,490

10,258

4.75%













Cash and due from banks


55,039





33,545




Allowance for loan losses


(8,392)





(8,593)




Premises and equipment


23,855





21,850




Other assets


45,929





51,077















      Total assets


$        1,043,791





$           962,369














Liabilities











Savings, MMDA and interest bearing demand


$           434,190

$                 769

0.71%



$           403,236

$                 504

0.50%


Time deposits


272,433

1,489

2.19%



231,884

968

1.67%


Repurchase agreements & other


15,948

22

0.55%



19,293

11

0.23%


Advances from Federal Home Loan Bank


16,000

101

2.53%



24,609

140

2.28%


Trust preferred securities


10,310

107

4.15%



10,310

106

4.11%













      Total interest bearing liabilities


748,881

2,488

1.33%



689,332

1,729

1.00%













Non interest bearing demand


143,361

-




134,146

-














      Total funding


892,242


1.12%



823,478


0.84%













Other liabilities


17,658





12,747















      Total liabilities


909,900





836,225















Equity


133,891





126,144















      Total liabilities and equity


$        1,043,791





$           962,369















Net interest income



$              9,058





$              8,529














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

3.91%





3.95%













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

3.93%





3.96%


 - Computed on a fully tax equivalent (FTE) basis























Nine Months Ended Sep. 30, 2019



Nine Months Ended Sep. 30, 2018




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities


$            96,013

$              2,489

3.46%



$            81,835

$              1,795

2.92%


Nontaxable securities


8,840

273

4.12%



11,815

339

3.83%


Loans, net


803,431

30,433

5.05%



740,292

26,706

4.81%













       Total earning assets


908,284

33,195

4.87%



833,942

28,840

4.61%













Cash and due from banks


46,797





33,137




Allowance for loan losses


(8,303)





(8,318)




Premises and equipment


23,643





21,656




Other assets


49,653





51,090















      Total assets


$        1,020,074





$           931,507














Liabilities











Savings, MMDA and interest bearing demand


$           426,436

$              2,232

0.70%



$           395,948

$              1,063

0.36%


Time deposits


261,362

4,036

2.06%



220,642

2,475

1.50%


Repurchase agreements & Other


15,760

65

0.55%



16,875

27

0.21%


Advances from Federal Home Loan Bank


16,088

301

2.49%



21,987

329

2.00%


Trust preferred securities


10,310

331

4.28%



10,310

293

3.79%













      Total interest bearing liabilities


729,956

6,965

1.27%



665,762

4,187

0.84%













Non interest bearing demand


141,537


1.07%



134,566


0.70%













      Total funding


871,493





800,328















Other liabilities


16,116





12,461















      Total liabilities


887,609





812,789















Equity


132,465





118,718















      Total liabilities and equity


$        1,020,074





$           931,507















Net interest income



$            26,230





$            24,653














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

3.85%





3.94%













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

3.87%





3.96%


 - Computed on a fully tax equivalent (FTE) basis









 

 


SB FINANCIAL GROUP, INC.





CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)





















($ in thousands, except per share & ratios)



At and for the Three Months Ended



Nine Months Ended





















September


June


March


December


September



September


September

SUMMARY OF OPERATIONS



2019


2019


2019


2018


2018



2019


2018


















   Net interest income 



$        9,058


$        8,832


$        8,340


$        8,614


$        8,529



$       26,230


$       24,653

         Tax-equivalent adjustment



43


44


43


41


40



130


116

   Tax-equivalent net interest income 



9,101


8,876


8,383


8,655


8,569



26,360


24,769

   Provision for loan loss 



300


200


-


-


-



500


600

   Noninterest income



5,366


3,691


3,000


3,930


4,202



12,057


12,695

   Total operating revenue



14,424


12,523


11,340


12,544


12,731



38,287


37,348

   Noninterest expense



9,500


9,108


8,626


8,852


8,789



27,234


25,995

   Pre-tax pre-provision income



4,924


3,415


2,714


3,692


3,942



11,053


11,353

   Pretax income



4,624


3,215


2,714


3,692


3,942



10,553


10,753

   Net income 



3,762


2,627


2,226


2,960


3,118



8,615


8,679

   Income available to common shareholders 



3,529


2,384


1,982


2,717


2,874



7,895


7,947


















PER SHARE INFORMATION:

















   Basic earnings per share (EPS)



0.55


0.37


0.31


0.42


0.45



1.22


1.30

   Diluted earnings per share



0.48


0.33


0.28


0.37


0.39



1.08


1.14

   Common dividends



0.090


0.090


0.085


0.085


0.080



0.265


0.235

   Book value per common share



17.28


16.89


16.57


16.36


15.94



17.28


15.94

   Tangible book value per common share (TBV)



16.23


15.83


15.43


15.39


14.87



16.23


14.87

   Fully converted TBV per common share



14.98


14.64


14.32


14.30


13.88



14.98


13.88

   Market price per common share



16.72


16.46


18.02


16.45


20.35



16.72


20.35

   Market price per preferred share



16.50


16.10


19.00


17.90


20.25



16.50


20.25

   Market price to TBV



103.0%


104.0%


116.8%


106.9%


136.8%



103.0%


136.8%

   Market price to fully converted TBV



111.6%


112.4%


125.8%


115.0%


146.6%



111.6%


146.6%

   Market price to trailing 12 month EPS



11.5


12.1


12.6


11.0


11.5



11.5


11.5


















PERFORMANCE RATIOS:

















   Return on average assets (ROAA)



1.44%


1.03%


0.89%


1.19%


1.30%



1.13%


1.24%

   Pre-tax pre-provision ROAA



1.89%


1.34%


1.08%


1.48%


1.64%



1.44%


1.62%

   Return on average equity



11.24%


7.92%


6.76%


9.21%


9.89%



8.67%


9.75%

   Return on average tangible equity



14.67%


10.41%


8.83%


12.06%


13.02%



11.35%


13.10%

   Efficiency ratio 



65.85%


72.71%


76.05%


70.55%


69.01%



71.12%


69.58%

   Earning asset yield



4.98%


4.88%


4.78%


4.86%


4.75%



4.87%


4.61%

   Cost of interest bearing liabilities



1.33%


1.28%


1.20%


1.15%


1.00%



1.27%


0.84%

   Net interest margin



3.91%


3.86%


3.79%


3.93%


3.95%



3.85%


3.94%

   Tax equivalent effect



0.02%


0.02%


0.02%


0.02%


0.01%



0.02%


0.02%

   Net interest margin, tax equivalent 



3.93%


3.88%


3.81%


3.95%


3.96%



3.87%


3.96%

   Non interest income/Average assets



2.06%


1.45%


1.20%


1.58%


1.75%



1.58%


1.82%

   Non interest expense/Average assets



3.64%


3.58%


3.45%


3.56%


3.65%



3.56%


3.72%

   Net noninterest expense/Average assets



-1.58%


-2.13%


-2.25%


-1.98%


-1.91%



-1.98%


-1.90%


















ASSET QUALITY RATIOS:

















   Gross charge-offs



128


20


60


322


12



208


85

   Recoveries



15


5


13


1


6



33


44

   Net charge-offs



113


15


47


321


6



175


41

   Nonaccruing loans/Total loans



0.40%


0.38%


0.40%


0.38%


0.31%



0.40%


0.31%

   Nonperforming loans/Total loans



0.50%


0.48%


0.51%


0.50%


0.43%



0.50%


0.43%

   Nonperforming assets/Loans & OREO



0.56%


0.55%


0.55%


0.51%


0.44%



0.56%


0.44%

   Nonperforming assets/Total assets



0.44%


0.43%


0.42%


0.40%


0.35%



0.44%


0.35%

   Allowance for loan loss/Nonperforming loans



207.12%


211.89%


204.35%


213.02%


255.62%



207.12%


255.62%

   Allowance for loan loss/Total loans



1.03%


1.02%


1.04%


1.06%


1.10%



1.03%


1.10%

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



0.05%


0.01%


0.02%


0.17%


0.00%



0.03%


0.01%

   Loan loss provision/Net charge-offs



265.49%


1333.33%


0.00%


0.00%


0.00%



285.71%


1463.41%


















CAPITAL & LIQUIDITY RATIOS:

















   Loans/ Deposits



97.10%


97.04%


94.55%


96.18%


97.75%



97.10%


97.75%

   Equity/ Assets



12.87%


13.01%


12.88%


13.22%


12.98%



12.87%


12.98%

   Tangible equity/Tangible assets



10.07%


10.10%


9.93%


10.31%


10.05%



10.07%


10.05%

   Tangible equity adjusted for conversion



11.36%


11.48%


11.33%


11.75%


11.50%



11.36%


11.50%

   Common equity tier 1 ratio (Bank) 



12.18%


12.53%


12.71%


12.57%


12.16%



12.18%


12.16%


















END OF PERIOD BALANCES

















   Total assets



1,042,761


1,029,123


1,021,271


986,828


979,180



1,042,761


979,180

   Total loans 



823,367


814,509


782,523


771,883


771,698



823,367


771,698

   Deposits



847,954


839,374


827,658


802,552


789,426



847,954


789,426

   Stockholders equity



134,246


133,937


131,506


130,435


127,109



134,246


127,109

   Goodwill & intangibles



17,834


17,836


17,838


16,401


16,404



17,834


16,404

   Preferred equity



13,241


13,978


13,978


13,979


13,979



13,241


13,979

   Tangible equity



103,171


102,123


99,690


100,055


96,726



103,171


96,726

   Mortgage servicing portfolio



1,153,020


1,112,857


1,094,060


1,084,678


1,066,402



1,153,020


1,066,402

   Wealth/Brokerage assets under care



484,295


479,442


462,580


423,289


412,218



484,295


412,218

   Total assets under care



2,680,076


2,621,422


2,577,911


2,494,795


2,457,800



2,680,076


2,457,800

   Full-time equivalent employees (actual)



247


250


256


250


250



247


250

   Period end basic shares outstanding



6,357


6,451


6,460


6,503


6,503



6,357


6,503

   Period end outstanding (Series A Converted)



1,414


1,478


1,475


1,472


1,470



1,414


1,470

   Market capitalization (all)



129,620


130,324


144,898


133,824


162,711



129,620


162,711


















AVERAGE BALANCES

















   Total assets



1,043,791


1,016,493


1,001,282


994,977


962,369



1,020,074


931,507

   Total earning assets 



927,360


914,652


879,394


875,747


864,490



908,284


833,942

   Total loans 



829,699


804,716


775,280


775,060


770,948



803,431


740,292

   Deposits



849,984


827,615


812,190


803,928


769,266



829,335


751,156

   Stockholders equity



133,891


132,734


131,691


128,539


126,144



132,465


118,718

   Intangibles



17,835


17,837


16,880


16,403


16,405



17,518


16,407

   Preferred equity



13,459


13,978


13,979


13,979


13,983



13,771


13,983

   Tangible equity



102,597


100,919


100,832


98,157


95,756



101,176


88,328

   Average basic shares outstanding



6,397


6,454


6,482


6,503


6,503



6,459


6,106

   Average diluted shares outstanding



7,876


7,967


7,994


8,030


8,022



7,955


7,626

 

 

Non-GAAP reconciliation


 Three Months Ended 


 Nine Months Ended 










($ in thousands, except per share & ratios)


 Sep. 30, 2019 


 Sep. 30, 2018 


 Sep. 30, 2019 


 Sep. 30, 2018 










Total Revenues


$         14,424


$         12,731


$         38,287


$         37,348

 Adjustment to remove temporary impairment*


-


62


1,398


(8)










Adjusted Total Revenues


14,424


12,793


39,685


37,340



















Income before Income Taxes


4,624


3,942


10,553


10,753

 Adjustment to remove temporary impairment


-


62


1,398


(8)










Adjusted Income before Income Taxes


4,624


4,004


11,951


10,745



















Provision for Income Taxes


862


824


1,938


2,074

 Adjustment to remove temporary impairment


-


13


294


(2)










Adjusted Provision for Income Taxes


862


837


2,232


2,072



















Net Income


3,762


3,118


8,615


8,679

 Adjustment to remove temporary impairment


-


49


1,104


(6)










Adjusted Net Income


3,762


3,167


9,719


8,672



















Diluted Earnings per Share


0.48


0.39


1.08


1.14

 Adjustment to remove temporary impairment


-


0.01


0.14


(0.00)










Adjusted Diluted Earnings per Share


$            0.48


$            0.40


$            1.22


$            1.14



















Return on Average Assets


1.44%


1.30%


1.13%


1.24%

 Adjustment to remove temporary impairment


0.00%


0.01%


0.11%


0.00%










Adjusted Return on Average Assets


1.44%


1.31%


1.23%


1.24%










* 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-third-quarter-and-nine-month-2019-earnings-300946206.html

SOURCE SB Financial Group, Inc.