Press Release

SB Financial Group, Inc. Announces First Quarter 2020 Results

Company Release - 4/23/2020 4:15 PM ET

DEFIANCE, Ohio, April 23, 2020 /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 first quarter ended March 31, 2020.

First quarter 2020 highlights over prior year first quarter include:

  • Net income of $0.7 million; diluted earnings per share (EPS) of $0.09
  • Adjusted net income, excluding the impact of the OMSR impairment of $2.2 million (pre-tax), of $2.4 million with EPS of $0.31
  • Mortgage origination volume of $101.4 million, an increase of $49.9 million, or 97.1 percent

First quarter 2020 trailing twelve-month highlights include:

  • Loan growth of $48.2 million, or 6.2 percent
  • Deposit growth of $36.2 million, or 4.4 percent
  • Mortgage origination volume of $495.3 million, an increase of $160.3 million, or 47.8 percent; servicing portfolio of $1.22 billion, up $0.12 billion, or 11.2 percent








Highlights

Three Months Ended

($ in thousands, except per share & ratios)

Mar. 2020

Mar. 2019

% Change

Operating revenue 

$      10,709

$      11,340

-5.6%

Interest income 

10,644

10,498

1.4%

Interest expense

2,096

2,158

-2.9%

Net interest income 

8,548

8,340

2.5%

Provision for loan losses

600

-

N/A

Noninterest income

2,161

3,000

-28.0%

Noninterest expense

9,406

8,626

9.0%

Net income 

681

2,226

-69.4%

Earnings per diluted share

0.09

0.28

-67.9%

Return on average assets

0.26%

0.89%

-70.8%

Return on average equity

1.99%

6.76%

-70.6%





Non-GAAP Measures




Adjusted net income

$        2,428

$        2,785

-12.8%

Adjusted diluted EPS

0.31

0.35

-11.4%

Adjusted return on average assets

0.92%

0.95%

-3.2%

Adjusted pre-tax, pre-provision income

3,514

3,422

2.7%

"SB Financial's first quarter GAAP results were impacted by the rapid decline in market rates driven by the Federal Reserve in response to the pandemic, which resulted in a large impairment to our mortgage servicing rights.  Adjusting for that impairment, pre-tax pre-provision earnings were up three percent compared to 2019," said Mark A. Klein, Chairman, President, and CEO of SB Financial.  "Mortgage volume accelerated in the quarter as we originated over $100 million in volume.  In response to the unprecedented economic impact of the pandemic, we are actively working with our clients on both forbearance solutions as well as the new Paycheck Protection Program ("PPP") small business lending facility."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income adjusted for the impairment, was up 7.2 percent from the first quarter of 2019, and down 9.3 percent to the linked quarter.

  • Net interest income was up 2.5 percent from the year-ago quarter, but down 0.6 percent from the linked quarter.
  • Net interest margin on a fully taxable equivalent basis (FTE) was down from both year-ago and linked quarters by 33 and 22 basis points, respectively as more balances were held in cash due to liquidity needs.
  • Adjusting for the OMSR impairment, noninterest income would be up 18 and down 23 percent, respectively.  

Mortgage Loan Business

Mortgage loan originations for the first quarter of 2020 were $101.4 million, up $49.9 million, or 97.1 percent, from the year-ago quarter.  Total sales of originated loans were $84.5 million, up $41.0 million, or 94.3 percent from the year-ago quarter.  Refinance activity accelerated in the quarter, with total refinance volume of $24.7 million or 24 percent, compared to 19 percent for all of 2019.

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was a negative $0.1 million for the first quarter of 2020, compared to $0.9 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the first quarter of 2020 was a negative $2.2 million, compared to a negative adjustment of $0.7 million for the first quarter of 2019.  The aggregate servicing valuation impairment ended the quarter at $3.5 million.  The servicing portfolio at March 31, 2020, was $1.22 billion, up $0.12 billion, or 11.2 percent, from $1.09 billion at March 31, 2019.  Normal amortization is up 135 percent from the prior year due to higher refinance activity.

Mr. Klein noted, "We experienced a rapid increase in mortgage activity late in the quarter as our clients reacted to the market rate declines.  As we look at our prior rolling 12 months, we have originated nearly $500 million in total volume for our clients throughout our footprint.  As expected, impairment to our servicing rights had an outsized impact on our results.  Our newest region, Indianapolis, contributed seven percent to our quarterly volume."







Mortgage Banking






($ in thousands)

Mar. 2020

Dec. 2019

Sep. 2019

Jun. 2019

Mar. 2019

Mortgage originations

$     101,365

$     137,528

$     157,947

$       98,447

$       51,417

Mortgage sales

84,476

127,441

125,386

70,993

43,472

Mortgage servicing portfolio

1,216,292

1,199,107

1,153,020

1,112,857

1,094,060

Mortgage servicing rights

8,974

11,017

10,447

10,264

10,838













Mortgage servicing revenue






Loan servicing fees

756

740

709

691

682

OMSR amortization

(597)

(709)

(701)

(460)

(254)

Net administrative fees

159

31

8

231

428

OMSR valuation adjustment

(2,212)

303

-

(690)

(708)

Net loan servicing fees

(2,053)

334

8

(459)

(280)

Gain on sale of mortgages

1,949

3,048

2,495

1,678

1,192

Mortgage banking revenue, net

$          (104)

$         3,382

$         2,503

$         1,219

$           912

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 $1.0 million with sales volume of $0.4 million resulting in gains of $0.07 million.  Wealth management assets under the Company's care fell to $427.1 million as of March 31, 2020 due to the market decline.  For the first quarter of 2020, noninterest income as a percentage of total operating revenue was 20.2 percent (33.8 percent when adjusting for the OMSR impairment).  Results for 2020 include a full quarter from our Title Agency compared to the prior year. 

For the first quarter of 2020, noninterest expense of $9.4 million was up $0.8 million compared to the prior year or 9.0 percent.  Higher mortgage production volumes increased compensation expense and title agency expenses are up compared to the prior year.  Data processing expenses are up due to higher activity levels from our digital banking channels.

Mr. Klein stated, "We are actively participating in the SBA's PPP program and anticipate total funding in the second quarter of $75 million.  Fee income levels from mortgage lending were up this quarter, but OMSR impairment had a significant impact on our operating results.  Our title agency acquisition in March of 2019, makes comparative results difficult; however; Peak took part in the increased mortgage activity in the quarter.  We continue to pay close attention to expenses and have begun to implement a number of actions in response to the pandemic headwinds affecting our business."

Noninterest Income / Noninterest Expense 





($ in thousands, except ratios)

Mar. 2020

Dec. 2019

Sep. 2019

Jun. 2019

Mar. 2019

Noninterest Income (NII)

$         2,161

$         5,959

$         5,366

$         3,691

$         3,000

NII / Total Revenue

20.2%

40.9%

37.2%

29.5%

26.5%

NII / Average Assets

0.8%

2.3%

2.1%

1.5%

1.2%







Noninterest Expense (NIE)

$         9,406

$       10,176

$         9,500

$         9,108

$         8,626

Efficiency Ratio

87.8%

69.9%

65.9%

72.7%

76.1%

NIE / Average Assets

3.5%

3.9%

3.6%

3.6%

3.5%

Net Noninterest Expense/Avg. Assets

-2.7%

-1.6%

-1.6%

-2.1%

-2.3%

Balance Sheet

Total assets as of March 31, 2020, were $1.09 billion, up $67.0 million, or 6.6 percent, from a year ago.  Total equity as of March 31, 2020, was $135.9 million, up 3.4 percent from a year ago, and comprised 12.5 percent of total assets.  Over the last twelve months, SB Financial repurchased 319,000 shares of common stock, for an aggregate of $5.4 million. 

Total loans held for investment were $830.8 million at March 31, 2020, up $48.2 million, or 6.2 percent, from March 31, 2019.  Commercial real estate loans were up $34.2 million, or 10.0 percent, with commercial loans rising $15.3 million, or 11.3 percent.

The investment portfolio of $107.7 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 9.9 percent of assets at March 31, 2020, and was up 12.4 percent from the year-ago period.  Deposit balances of $863.9 million at March 31, 2020, increased by $36.2 million or 4.4 percent, since March 31, 2019.  Growth from the prior year included $26.2 million in checking and $10.0 million in savings and time deposit balances.

Mr. Klein continued, "Both loan and deposit volumes were up over the prior year although business activity slowed in March and lending activity beyond the U.S.Treasury programs will likely be constrained in the near term.  Nonperforming assets to total assets increased as we had an asset based commercial line that we downgraded at year end.   We ended the quarter at 61 basis points of NPA's, up 19 basis points from the prior year."








Loan Balances







($ in thousands, except ratios)

Mar. 2020

Dec. 2019

Sep. 2019

Jun. 2019

Mar. 2019

Annual
Growth

Commercial

$       151,538

$       151,018

$       145,147

$       143,798

$       136,201

$         15,337

% of Total

18.2%

18.3%

17.6%

17.7%

17.4%

11.3%

Commercial RE

378,212

369,962

362,580

360,491

343,900

34,312

% of Total

45.5%

44.8%

44.0%

44.2%

43.9%

10.0%

Agriculture

47,660

50,994

51,946

54,317

50,620

(2,960)

% of Total

5.7%

6.2%

6.3%

6.7%

6.5%

-5.8%

Residential RE

189,738

189,290

199,036

191,642

187,548

2,190

% of Total

22.9%

22.9%

24.2%

23.5%

24.0%

1.2%

Consumer & Other

63,616

64,246

64,658

64,261

64,254

-638

% of Total

7.7%

7.8%

7.9%

7.9%

8.2%

-1.0%

Total Loans

$       830,764

$       825,510

$       823,367

$       814,509

$       782,523

$         48,241

Total Growth Percentage






6.2%















Deposit Balances







($ in thousands, except ratios)

Mar. 2020

Dec. 2019

Sep. 2019

Jun. 2019

Mar. 2019

Annual
Growth

Non-Int DDA

$       170,920

$       158,357

$       152,932

$       141,216

$       146,327

$         24,593

% of Total

19.8%

18.8%

18.0%

16.8%

17.7%

16.8%

Interest DDA

133,722

131,084

131,655

129,710

132,101

1,621

% of Total

15.5%

15.6%

15.5%

15.5%

16.0%

1.2%

Savings

138,863

119,359

121,991

118,931

115,272

23,591

% of Total

16.0%

14.1%

14.3%

14.1%

13.8%

20.5%

Money Market

169,209

173,666

173,237

175,455

175,334

(6,125)

% of Total

19.6%

20.7%

20.4%

20.9%

21.2%

-3.5%

Time Deposits

251,177

257,753

268,139

274,062

258,624

(7,447)

% of Total

29.1%

30.8%

31.8%

32.7%

31.3%

-2.9%

Total Deposits

$       863,891

$       840,219

$       847,954

$       839,374

$       827,658

$         36,233

Total Growth Percentage






4.4%








Asset Quality

SB Financial reported nonperforming assets of $6.7 million as of March 31, 2020, up $2.4 million from the year-ago quarter.  The Company took a $0.4 million charge-off on this credit in the quarter and expects further pressure on the portfolio due to the COVID-19 impact.  SB Financial's nonperforming assets to total assets ratio of 0.61 percent is up 56 percent from the prior year.  The coverage of problem loans by the loan loss allowance was at 136 percent at March 31, 2020, down from 204 percent at March 31, 2019.








Nonperforming Assets






Annual
Change

($ in thousands, except ratios)

Mar. 2020

Dec. 2019

Sep. 2019

Jun. 2019

Mar. 2019

Commercial & Agriculture

$          1,309

$          1,772

$             834

$             674

$             998

$             311

% of Total Com./Ag. loans

0.66%

0.88%

0.42%

0.34%

0.53%

31.2%

Commercial RE 

1,816

1,826

262

208

212

1,604

% of Total CRE loans

0.48%

0.49%

0.07%

0.06%

0.06%

756.6%

Residential RE

2,330

1,635

1,763

1,768

1,612

718

% of Total Res. RE loans

1.23%

0.86%

0.89%

0.92%

0.86%

44.5%

Consumer & Other

327

267

416

456

325

2

% of Total Con./Oth. loans  

0.51%

0.42%

0.64%

0.71%

0.51%

0.6%

Total Nonaccruing Loans 

5,782

5,500

3,275

3,106

3,147

2,635

% of Total loans

0.70%

0.67%

0.40%

0.38%

0.40%

83.7%

Accruing Restructured Loans

816

874

825

814

827

(11)

Total Change (%)






-1.3%

Total Nonaccruing & Restructured Loans

6,598

6,374

4,100

3,920

3,974

2,624

% of Total loans

0.79%

0.77%

0.50%

0.48%

0.51%

66.0%

Foreclosed Assets

85

305

489

530

313

(228)

Total Change (%)






-72.8%

Total Nonperforming Assets

$          6,683

$          6,679

$          4,589

$          4,450

$          4,287

$          2,396

% of Total assets

0.61%

0.64%

0.44%

0.43%

0.42%

55.9%

Webcast and Conference Call

The Company will hold a related conference call and webcast on April 24, 2020, at 11:00 a.m. EDT.  Interested parties may access the conference call by dialing 1-888-338-9469.  The webcast can be accessed at ir.yourstatebank.com.  An audio replay of the call will be available on the Company's 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 22 full-service ATMs.  The Company has six 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". 

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, the duration and scope of the COVID-19 outbreak in the United States and the market areas in which SB Financial and its subsidiaries operate, including the impact to the state and local economies of prolonged shelter in place orders and the pandemic generally, 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)


2020


2019


2019


2019


2019















ASSETS












Cash and due from banks


$       56,393


$       27,064


$       49,824


$       42,786


$       62,962


Available-for-sale securities


107,727


100,948


77,029


85,261


95,802


Loans held for sale


11,328


7,258


13,655


9,579


4,346


Loans, net of unearned income


830,764


825,510


823,367


814,509


782,523


Allowance for loan losses


(8,958)


(8,755)


(8,492)


(8,306)


(8,121)


Premises and equipment, net


23,599


23,385


23,898


23,150


23,270


Federal Reserve and FHLB Stock, at cost


4,648


4,648


4,648


4,648


4,123


Foreclosed assets held for sale, net


85


305


489


530


313


Interest receivable


2,940


3,106


3,176


3,209


3,123


Goodwill and other intangibles


17,830


17,832


17,834


17,836


17,838


Cash value of life insurance


17,299


17,221


17,137


17,051


16,966


Mortgage servicing rights


8,974


11,017


10,447


10,264


10,838


Other assets


15,684


9,038


9,749


8,606


7,288


















Total assets


$  1,088,313


$  1,038,577


$  1,042,761


$  1,029,123


$  1,021,271











































LIABILITIES AND SHAREHOLDERS' EQUITY












Deposits













Non interest bearing demand


$     170,920


$     158,357


$     152,932


$     141,216


$     146,327



Interest bearing demand


133,722


131,084


131,655


129,710


132,101



Savings


138,863


119,359


121,991


118,931


115,272



Money market


169,209


173,666


173,237


175,455


175,334



Time deposits


251,177


257,753


268,139


274,062


258,624


















Total deposits


863,891


840,219


847,954


839,374


827,658
















Short-term borrowings


36,881


12,945


14,659


13,968


12,255


Federal Home Loan Bank advances


16,000


16,000


16,000


16,000


24,000


Trust preferred securities


10,310


10,310


10,310


10,310


10,310


Interest payable


1,131


1,191


1,391


1,188


1,123


Other liabilities


24,195


21,818


18,201


14,346


14,419


















Total liabilities


952,408


902,483


908,515


895,186


889,765
















Shareholders' Equity













Preferred stock


-


-


13,241


13,978


13,978



Common stock


54,463


54,463


41,223


40,486


40,486



Additional paid-in capital


14,655


15,023


15,219


15,259


15,143



Retained earnings


72,641


72,704


70,184


67,236


65,438



Accumulated other comprehensive income (loss)

2,049


659


900


801


124



Treasury stock


(7,903)


(6,755)


(6,521)


(3,823)


(3,663)


















Total shareholders' equity


135,905


136,094


134,246


133,937


131,506


















Total liabilities and shareholders' equity


$  1,088,313


$  1,038,577


$  1,042,761


$  1,029,123


$  1,021,271

 

 


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



2020


2019


2019


2019


2019


Loans












  Taxable 


$        9,795


$     10,313


$     10,607


$     10,182


$        9,427


  Tax exempt


79


83


82


73


62


Securities












  Taxable 


692


737


776


802


911


  Tax exempt


78


72


81


94


98
















Total interest income


10,644


11,205


11,546


11,151


10,498














Interest expense













Deposits


1,880


2,392


2,258


2,092


1,918


Repurchase agreements & other


28


17


22


17


26


Federal Home Loan Bank advances


100


101


101


100


100


Trust preferred securities


88


99


107


110


114
















Total interest expense


2,096


2,609


2,488


2,319


2,158



























Net interest income


8,548


8,596


9,058


8,832


8,340















Provision for loan losses 


600


300


300


200


-














Net interest income after provision











  for loan losses



7,948


8,296


8,758


8,632


8,340














Noninterest income













Wealth management fees


768


801


775


783


734


Customer service fees


682


712


729


689


631


Gain on sale of mtg. loans & OMSR


1,949


3,048


2,495


1,678


1,192


Mortgage loan servicing fees, net


(2,052)


334


8


(459)


(280)


Gain on sale of non-mortgage loans


104


250


462


216


327


Title insurance income


265


393


400


308


19


Net gain on sales of securities


-


-


-


206


-


Gain (loss) on sale of assets


(46)


1


1


(5)


(2)


Other


491


420


496


275


379
















Total noninterest income


2,161


5,959


5,366


3,691


3,000














Noninterest expense












Salaries and employee benefits


5,427


6,142


5,715


5,305


4,902


Net occupancy expense


698


675


656


627


645


Equipment expense


700


764


688


665


711


Data processing fees


548


543


499


488


443


Professional fees


757


639


571


649


617


Marketing expense


208


171


239


246


239


Telephone and communication expense

115


121


118


112


115


Postage and delivery expense


115


86


89


81


84


State, local and other taxes


254


347


243


247


255


Employee expense


184


207


199


236


153


Other expenses


400


481


483


452


462
















Total noninterest expense


9,406


10,176


9,500


9,108


8,626



























Income before income tax expense


703


4,079


4,624


3,215


2,714















Income tax expense


22


721


862


588


488














Net income 




$           681


$        3,358


$        3,762


$        2,627


$        2,226














Preferred share dividends 


-


230


233


243


244














Net income available to common shareholders


681


3,128


3,529


2,384


1,982














Common share data:












Basic earnings per common share


$          0.09


$          0.48


$          0.55


$          0.37


$          0.31















Diluted earnings per common share


$          0.09


$          0.42


$          0.48


$          0.33


$          0.28














Average shares outstanding (in thousands):












Basic:


7,756


6,445


6,397


6,454


6,482


Diluted: 


7,756


7,799


7,876


7,967


7,994

 

 


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


2020


2019


2019


2019


2019












   Net interest income 


$        8,548


$        8,596


$        9,058


$        8,832


$        8,340

         Tax-equivalent adjustment


42


41


43


44


43

   Tax-equivalent net interest income 


8,590


8,637


9,101


8,876


8,383

   Provision for loan loss 


600


300


300


200


-

   Noninterest income


2,161


5,959


5,366


3,691


3,000

   Total operating revenue


10,709


14,555


14,424


12,523


11,340

   Noninterest expense


9,406


10,176


9,500


9,108


8,626

   Pre-tax pre-provision income


1,303


4,379


4,924


3,415


2,714

   Pretax income


703


4,079


4,624


3,215


2,714

   Net income 


681


3,358


3,762


2,627


2,226

   Net income available to common shareholders 

681


3,128


3,529


2,384


1,982












PER SHARE INFORMATION:











   Basic earnings per share (EPS)


0.09


0.48


0.55


0.37


0.31

   Diluted earnings per share


0.09


0.42


0.48


0.33


0.28

   Common dividends


0.095


0.095


0.090


0.090


0.085

   Book value per common share


17.64


17.53


17.28


16.89


16.57

   Tangible book value per common share (TBV)


15.32


15.23


16.23


15.83


15.43

   Fully converted TBV per common share


-


-


14.98


14.64


14.32

   Market price per common share


11.12


19.69


16.72


16.46


18.02

   Market price per preferred share


-


-


16.50


16.10


19.00

   Market price to TBV


72.6%


129.2%


103.0%


104.0%


116.8%

   Market price to fully converted TBV


-


-


111.6%


112.4%


125.8%

   Market price to trailing 12 month EPS


8.4


13.0


11.5


12.1


12.6












PERFORMANCE RATIOS:











   Return on average assets (ROAA)


0.26%


1.28%


1.44%


1.03%


0.89%

   Pre-tax pre-provision ROAA


0.49%


1.67%


1.89%


1.34%


1.08%

   Return on average equity


1.99%


9.93%


11.24%


7.92%


6.76%

   Return on average tangible equity


2.29%


12.83%


14.67%


10.41%


8.83%

   Efficiency ratio 


87.81%


69.90%


65.85%


72.71%


76.05%

   Earning asset yield


4.32%


4.80%


4.98%


4.88%


4.78%

   Cost of interest bearing liabilities


1.12%


1.42%


1.33%


1.28%


1.20%

   Net interest margin


3.47%


3.68%


3.91%


3.86%


3.79%

   Tax equivalent effect


0.01%


0.02%


0.02%


0.02%


0.02%

   Net interest margin, tax equivalent 


3.48%


3.70%


3.93%


3.88%


3.81%

   Non interest income/Average assets


0.81%


2.27%


2.06%


1.45%


1.20%

   Non interest expense/Average assets


3.54%


3.87%


3.64%


3.58%


3.45%

   Net noninterest expense/Average assets


-2.73%


-1.60%


-1.58%


-2.13%


-2.25%












ASSET QUALITY RATIOS:











   Gross charge-offs


400


51


128


20


60

   Recoveries


3


14


15


5


13

   Net charge-offs


397


37


113


15


47

   Nonaccruing loans/Total loans


0.70%


0.67%


0.40%


0.38%


0.40%

   Nonperforming loans/Total loans


0.79%


0.77%


0.50%


0.48%


0.51%

   Nonperforming assets/Loans & OREO


0.80%


0.81%


0.56%


0.55%


0.55%

   Nonperforming assets/Total assets


0.61%


0.64%


0.44%


0.43%


0.42%

   Allowance for loan loss/Nonperforming loans


135.77%


137.35%


207.12%


211.89%


204.35%

   Allowance for loan loss/Total loans


1.08%


1.06%


1.03%


1.02%


1.04%

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


0.19%


0.02%


0.05%


0.01%


0.02%

   Loan loss provision/Net charge-offs


151.13%


810.81%


265.49%


1333.33%


0.00%












CAPITAL & LIQUIDITY RATIOS:











   Loans/ Deposits


96.17%


98.25%


97.10%


97.04%


94.55%

   Equity/ Assets


12.49%


13.10%


12.87%


13.01%


12.88%

   Tangible equity/Tangible assets


11.03%


11.59%


10.07%


10.10%


9.93%

   Tangible equity adjusted for conversion


11.03%


11.59%


11.36%


11.48%


11.33%

   Common equity tier 1 ratio (Bank) 3/20 estimate

12.25%


12.46%


12.07%


12.53%


12.71%












END OF PERIOD BALANCES











   Total assets


1,088,313


1,038,577


1,042,761


1,029,123


1,021,271

   Total loans 


830,764


825,510


823,367


814,509


782,523

   Deposits


863,891


840,219


847,954


839,374


827,658

   Stockholders equity


135,905


136,094


134,246


133,937


131,506

   Goodwill & intangibles


17,830


17,832


17,834


17,836


17,838

   Preferred equity


-


-


13,241


13,978


13,978

   Tangible equity


118,075


118,262


103,171


102,123


99,690

   Mortgage servicing portfolio


1,216,292


1,199,107


1,153,020


1,112,857


1,094,060

   Wealth/Brokerage assets under care


427,129


507,670


484,295


479,442


462,580

   Total assets under care


2,731,734


2,745,354


2,680,076


2,621,422


2,577,911

   Full-time equivalent employees (actual)


253


252


247


250


256

   Period end basic shares outstanding


7,705


7,763


6,357


6,451


6,460

   Period end outstanding (Series A Converted)


-


-


1,414


1,478


1,475

   Market capitalization (all)


85,680


152,853


129,620


130,324


144,898












AVERAGE BALANCES











   Total assets


1,061,365


1,051,071


1,043,791


1,016,493


1,001,282

   Total earning assets 


986,216


934,540


927,360


914,652


879,394

   Total loans 


832,975


828,108


829,699


804,716


775,280

   Deposits


855,272


856,961


849,984


827,615


812,190

   Stockholders equity


136,930


135,267


133,891


132,734


131,691

   Intangibles


17,831


17,833


17,835


17,837


16,880

   Preferred equity


-


12,707


13,459


13,978


13,979

   Tangible equity


119,099


104,727


102,597


100,919


100,832

   Average basic shares outstanding


7,756


6,445


6,397


6,454


6,482

   Average diluted shares outstanding


7,756


7,799


7,876


7,967


7,994

 

 

SB FINANCIAL GROUP, INC.


Rate Volume Analysis - (Unaudited)


At and for the Three Months Ended March 31, 2020 and 2019









($ in thousands)


Three Months Ended Mar. 31, 2020



Three Months Ended Mar. 31, 2019




Average


Average



Average


Average

Assets


Balance

Interest

Rate



Balance

Interest

Rate













Taxable securities/Cash


$           146,678

$                 692

1.89%



$            94,623

$                 911

3.85%


Nontaxable securities


6,563

78

4.75%



9,491

98

4.13%


Loans, net


832,975

9,874

4.74%



775,280

9,489

4.90%













       Total earning assets


986,216

10,644

4.32%



879,394

10,498

4.78%













Cash and due from banks


5,512





56,976




Allowance for loan losses


(8,867)





(8,284)




Premises and equipment


23,698





22,650




Other assets


54,806





50,546















      Total assets


$        1,061,365





$        1,001,282














Liabilities











Savings, MMDA and interest bearing demand


$           442,438

$              1,083

0.98%



$           422,649

$                 722

0.68%


Time deposits


254,342

797

1.25%



249,655

1,196

1.92%


Repurchase agreements & other


22,537

28

0.50%



17,704

26

0.59%


Advances from Federal Home Loan Bank


16,132

100

2.48%



16,267

100

2.46%


Trust preferred securities


10,310

88

3.41%



10,310

114

4.42%













      Total interest bearing liabilities


745,759

2,096

1.12%



716,585

2,158

1.20%













Non interest bearing demand


158,492

-




139,886

-














      Total funding


904,251


0.93%



856,471


1.01%













Other liabilities


20,184





13,120















      Total liabilities


924,435





869,591















Equity


136,930





131,691















      Total liabilities and equity


$        1,061,365





$        1,001,282















Net interest income



$              8,548





$              8,340














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

3.47%





3.79%













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

3.48%





3.81%


 - Computed on a fully tax equivalent (FTE) basis









 

 

Non-GAAP reconciliation


 Three Months Ended 


 Twelve Months Ended 










($ in thousands, except per share & ratios)


 Mar. 31, 2020 


 Mar. 31, 2019 


 Dec. 31, 2019 


 Dec. 31, 2018 










Total Operating Revenue


$         10,709


$         11,340


$         10,709


$         23,863

 Adjustment to (deduct)/add OMSR impairment*


2,212


708


1,094


61










Adjusted Total Operating Revenue


12,921


12,048


11,803


23,924



















Income before Income Taxes


703


2,714


703


5,929

 Adjustment to (deduct)/add OMSR impairment


2,212


708


1,094


61










Adjusted Income before Income Taxes


2,915


3,422


1,797


5,990



















Provision for Income Taxes


22


488


22


1,076

 Adjustment to (deduct)/add OMSR impairment


465


149


230


13










Adjusted Provision for Income Taxes


487


637


252


1,089



















Net Income


681


2,226


681


4,853

 Adjustment to (deduct)/add OMSR impairment


1,747


559


864


48










Adjusted Net Income


2,428


2,785


1,545


4,901



















Diluted Earnings per Share


0.09


0.28


0.09


0.61

 Adjustment to (deduct)/add OMSR impairment


0.22


0.07


0.11


0.01










Adjusted Diluted Earnings per Share


$            0.31


$            0.35


$            0.20


$            0.62



















Return on Average Assets


0.26%


0.89%


0.07%


0.96%

 Adjustment to (deduct)/add OMSR impairment


0.66%


0.06%


0.08%


0.00%










Adjusted Return on Average Assets


0.92%


0.95%


0.15%


0.97%










*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-2020-results-301046422.html

SOURCE SB Financial Group, Inc.