DEFIANCE, Ohio, Jan. 25, 2018 /PRNewswire/ — SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, and private client services, today reported earnings for the fourth-quarter and twelve-months ended December 31, 2017.
Fourth quarter highlights over prior-year fourth quarter include:
- Net income of $4.0 million, an increase of 74.0 percent, or $1.7 million
- Return on average assets of 1.83 percent
- Diluted earnings per share (EPS) of $0.64, an increase of 73.0 percent, or $0.27 per share
- Mortgage origination volume of $72.1 million, a decrease of 13.6 percent, or $11.4 million from $83.5 million
- Impact of Deferred Tax Liability recapture was an increase in net income of $1.7 million, or $0.27 per share
Twelve-months ended December 31, 2017 highlights over prior-year twelve months include:
- Net income of $11.1 million, an increase of 26.0 percent, or $2.3 million
- Return on average assets of 1.29 percent
- Diluted earnings per share (EPS) of $1.74, an increase of 26.1 percent, or $0.36 per share
- Total loan growth of $52.2 million, or 8.1 percent
- Total deposit growth of $56.5 million, or 8.4 percent
- Total residential mortgage volume of $315.8 million, down $67.0 million or 17.5 percent
|
Highlights |
Three Months Ended |
Twelve Months Ended |
||||
|
($000’s except ratios and share data) |
Dec. 2017 |
Dec. 2016 |
% Change |
Dec. 2017 |
Dec. 2016 |
% Change |
|
Operating revenue |
$ 11,746 |
$ 11,775 |
(.2%) |
$ 45,603 |
$ 43,742 |
4.3% |
|
Interest income |
8,762 |
7,512 |
16.6 |
32,480 |
29,051 |
11.8 |
|
Interest expense |
1,108 |
865 |
28.1 |
4,094 |
3,198 |
28.0 |
|
Net interest income |
7,654 |
6,647 |
15.2 |
28,386 |
25,853 |
9.8 |
|
Noninterest income |
4,092 |
5,128 |
(20.2) |
17,217 |
17,889 |
(3.8) |
|
Noninterest expense |
8,106 |
7,859 |
3.1 |
31,578 |
30,091 |
4.9 |
|
Net income |
4,032 |
2,317 |
74.0 |
11,065 |
8,784 |
26.0 |
|
Earnings per diluted share |
0.64 |
0.37 |
73.0 |
1.74 |
1.38 |
26.1 |
|
Net interest margin (FTE) |
3.96% |
3.69% |
7.3 |
3.78% |
3.75% |
0.8 |
|
Return on average assets |
1.83% |
1.14% |
60.5 |
1.29% |
1.11% |
16.2 |
|
Return on average equity |
17.52% |
10.73% |
63.4 |
12.36% |
10.39% |
19.0 |
“The recently enacted tax plan had a significant effect on earnings in the quarter as it added $1.7 million in net income or $0.27 per share to our results,” said Mark A. Klein, Chairman, President and CEO of SB Financial. “Excluding the positive tax impact, we were pleased to deliver another significant year of growth. Asset quality remained strong all year and as a result of our continued focus on diversity of revenue, we were able to offset the effects of lower mortgage volume in 2017 with our other, fee-based business lines.”
RESULTS OF OPERATIONS
Consolidated Revenue
Total operating revenue of $11.7 million, consisting of net interest income and noninterest income, was flat as compared to the fourth quarter of 2016, and down 3.1 percent from the linked quarter.
- Net interest income of $7.7 million, was up 15.2 percent from the year-ago quarter, and up 5.4 percent from the linked quarter.
- Net interest margin (FTE) of 3.96 percent, was up 27 basis points from the year-ago quarter, and up 15 basis points from the linked quarter.
- Noninterest income of $4.1 million was down 20.2 percent from the year-ago quarter, and down 15.8 percent from the linked quarter.
- Total revenue for the full year of 2017 was $45.6 million compared to $43.7 million for the full year of 2016, which is a 4.3 percent increase.
Mortgage Loan Business
Mortgage loan originations for the fourth quarter of 2017 were $72.1 million, down $11.40 million, or 13.6 percent, from the year-ago quarter. Total sales of originated loans were $53.8 million, down $27.9 million, or 34.1 percent from the year-ago quarter.
Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.1 million for the fourth quarter of 2017, compared to $3.3 million for the year-ago quarter, or a 37.7 percent decrease. The mortgage servicing valuation adjustment for the fourth quarter of 2017 was a positive $0.12 million, compared to a positive adjustment of $1.2 million for the fourth quarter of 2016. The aggregate servicing valuation impairment ended the quarter at $0.2 million. The mortgage-servicing portfolio at December 31, 2017, was $994.9 million, up $95.2 million, or 10.6 percent, from $899.7 million at December 31, 2016.
“As we have said all year, our mortgage business has encountered increasing rates and decreasing availability of home inventory,” noted Mr. Klein. “Despite those challenges our mortgage team delivered over $315 million of volume in 2017, with 94 percent of that volume coming from new clients to the Company.”
|
Mortgage Banking ($000’s) |
|||||
|
Dec. 2017 |
Sep. 2017 |
Jun. 2017 |
Mar. 2017 |
Dec. 2016 |
|
|
Mortgage originations |
$ 72,102 |
$ 89,217 |
$ 97,804 |
$ 56,667 |
$ 83,469 |
|
Mortgage sales |
53,825 |
76,919 |
80,038 |
50,473 |
81,689 |
|
Mortgage servicing portfolio |
994,915 |
979,251 |
952,364 |
917,435 |
899,710 |
|
Mortgage servicing rights |
9,907 |
9,560 |
9,217 |
8,727 |
8,422 |
|
Mortgage servicing revenue: |
|||||
|
Loan servicing fees |
617 |
605 |
583 |
566 |
553 |
|
OMSR amortization |
(269) |
(343) |
(303) |
(218) |
(462) |
|
Net administrative fees |
348 |
262 |
280 |
348 |
91 |
|
OMSR valuation adjustment |
118 |
(35) |
(39) |
35 |
1,233 |
|
Net loan servicing fees |
466 |
227 |
241 |
383 |
1,324 |
|
Gain on sale of mortgages |
1,607 |
2,211 |
2,063 |
1,250 |
2,002 |
|
Mortgage banking revenue, net |
$2,073 |
$2,438 |
$2,304 |
$1,633 |
$3,326 |
Noninterest Income and Noninterest Expense
SB Financial’s noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees and the sale of small business loans (SBA). SBA activity for the quarter included total loan volume of $2.7 million with gains of $0.2 million. Wealth management assets under the Company’s care stood at $437.0 million, up $58.9 million or 15.6 percent. Noninterest income as a percentage of total revenue was 34.8 percent.
For the fourth quarter of 2017, noninterest expense (NIE) of $8.1 million was up $0.2 million, or 3.1 percent, compared to the same quarter last year. The increase was due mainly to staffing increases and higher marketing costs. Compared to the linked quarter, NIE was down $0.2 million, or 2.1 percent.
Mr. Klein stated, “During 2017, our non-mortgage business lines again produced solid results for the year, offsetting the decline in volume in residential real estate. Specifically, SBA gains for the quarter and year of $0.2 and $1.2 million respectively coupled with a nearly 16 percent growth in our assets under our care in our Wealth Management division, helped close the gap.”
|
Noninterest Income / Noninterest Expense |
|||||
|
($000’s) |
|||||
|
Dec. 2017 |
Sep. 2017 |
Jun. 2017 |
Mar. 2017 |
Dec. 2016 |
|
|
Noninterest Income (NII) |
$ 4,092 |
$ 4,861 |
$ 4,462 |
$ 3,802 |
$ 5,128 |
|
NII / Total Revenue |
34.8% |
40.1% |
39.1% |
36.9% |
43.6% |
|
NII / Average Assets |
1.9% |
2.3% |
2.1% |
1.8% |
2.5% |
|
Noninterest Expense (NIE) |
$ 8,106 |
$ 8,284 |
$ 7,806 |
$ 7,382 |
$ 7,859 |
|
Efficiency Ratio |
69.0% |
68.3% |
68.3% |
71.6% |
66.7% |
|
NIE / Average Assets |
3.7% |
3.9% |
3.7% |
3.6% |
3.9% |
|
Net Noninterest Expense |
(1.8) |
(1.6) |
(1.6) |
(1.7) |
(1.3) |
Balance Sheet
Total assets as of December 31, 2017, were $876.6 million, up $60.6 million, or 7.4 percent, from a year ago. Total equity as of December 31, 2017, was $94.0 million, up 8.6 percent from a year ago, and was at 10.7 percent of total assets.
Total loans held for investment were $696.6 million at December 31, 2017, up $52.2 million, or 8.1 percent, from December 31, 2016. Commercial real estate loans were up $48.1 million, or 16.9 percent, and accounted for the majority of the total loan growth. Residential real estate also rose $8.4 million, or 5.9 percent, from the prior period.
The investment portfolio of $86.5 million, including Federal Reserve Bank and Federal Home Loan Bank stock, represented 9.9 percent of assets at December 31, 2017, and was down 7.8 percent from the year-ago period. Deposit balances of $729.6 million at December 31, 2017, increased by $56.5 million, or 8.4 percent, since December 31, 2016. Growth from the prior year included $9.9 million in checking and $46.6 million in savings and time deposit balances.
“Loan growth was strong for the quarter, up nearly $22 million, a 13 percent annualized rate,” said Mr. Klein. “Most importantly we were able to fund the bulk of our year-over-year loan growth with retail deposit balances and we look forward to continuing this momentum in 2018.”
|
Loan Portfolio ($000’s) |
Dec. 2017 |
Sep. 2017 |
Jun. 2017 |
Mar. 2017 |
Dec. 2016 |
Variance |
|||
|
Commercial |
$ 102,041 |
$ 104,723 |
$ 107,319 |
$ 102,392 |
$ 109,087 |
($7,046) |
|||
|
% of Total |
14.6% |
15.5% |
16.5% |
16.4% |
16.9% |
(6.5%) |
|||
|
Commercial RE |
332,154 |
319,764 |
296,116 |
282,951 |
284,084 |
48,070 |
|||
|
% of Total |
47.7% |
47.4% |
45.4% |
45.1% |
44.1% |
16.9% |
|||
|
Agriculture |
51,947 |
51,140 |
52,107 |
47,580 |
52,475 |
(528) |
|||
|
% of Total |
7.5% |
7.8% |
8.0% |
7.6% |
8.2% |
(1.0%) |
|||
|
Residential RE |
150,854 |
141,296 |
137,214 |
136,762 |
142,452 |
8,402 |
|||
|
% of Total |
21.7% |
20.9% |
21.1% |
21.8% |
22.1% |
5.9% |
|||
|
Consumer & Other |
59,619 |
58,152 |
58,833 |
57,037 |
56,335 |
3,284 |
|||
|
% of Total |
8.6% |
8.6% |
9.0% |
9.1% |
8.7% |
5.8% |
|||
|
Total Loans |
$696,615 |
$675,075 |
$651,589 |
$626,722 |
$644,433 |
$ 52,182 |
|||
|
Total Growth Percentage |
8.1% |
||||||||
|
Deposit Bal. ($000’s) |
Dec. 2017 |
Sep. 2017 |
Jun. 2017 |
Mar. 2017 |
Dec. 2016 |
Variance |
|||
|
Non-Int DDA |
$ 135,592 |
$ 124,840 |
$ 124,213 |
$ 124,664 |
$ 125,189 |
$ 10,403 |
|||
|
% of Total |
18.6% |
17.4% |
17.6% |
17.5% |
18.6% |
8.3% |
|||
|
Interest DDA |
131,079 |
130,513 |
127,409 |
133,388 |
131,598 |
(519) |
|||
|
% of Total |
18.0% |
18.2% |
18.0% |
18.7% |
19.5% |
(0.4%) |
|||
|
Savings |
103,267 |
103,530 |
104,720 |
103,901 |
95,594 |
7,673 |
|||
|
% of Total |
14.2% |
14.4% |
14.8% |
14.6% |
14.2% |
8.0% |
|||
|
Money Market |
141,844 |
140,647 |
130,987 |
138,915 |
122,976 |
18,868 |
|||
|
% of Total |
19.4% |
19.6% |
18.5% |
19.5% |
18.3% |
15.3% |
|||
|
Certificates |
217,818 |
217,277 |
220,004 |
212,047 |
197,716 |
20,102 |
|||
|
% of Total |
29.9% |
30.3% |
31.1% |
29.7% |
29.4% |
10.2% |
|||
|
Total Deposits |
$729,600 |
$716,807 |
$707,333 |
$712,915 |
$673,073 |
$ 56,527 |
|||
|
Total Growth Percentage |
8.4% |
||||||||
Asset Quality
SB Financial maintained its high-performing peer asset quality level during the quarter, reporting non-performing assets of $3.9 million as of December 31, 2017, down $1.5 million, or 27.5 percent, from the year-ago quarter. SB Financial’s nonperforming assets to total assets ratio of 0.44 percent is down from 0.65 percent at December 31, 2016. The coverage of problem loans by the loan loss allowance was at 206.9 percent at December 31, 2017, up from the 178.5 percent at December 31, 2016.
|
Summary of Nonperforming Assets ($000’s) |
||||||
|
Nonperforming Category |
Dec. 2017 |
Sep. 2017 |
Jun. 2017 |
Mar. 2017 |
Dec. 2016 |
Variance |
|
Commercial & Agriculture |
$ 121 |
$ 125 |
$ 132 |
$ 187 |
$ 194 |
$(73) |
|
% of Total Com./Ag. loans |
0.08% |
0.08% |
0.08% |
0.13% |
0.12% |
(37.6%) |
|
Commercial RE |
1,322 |
1,029 |
1,049 |
939 |
1,194 |
128 |
|
% of Total CRE loans |
0.40% |
0.32% |
0.35% |
0.33% |
0.42% |
10.7% |
|
Residential RE |
1,123 |
1,074 |
1,115 |
1,126 |
1,162 |
(39) |
|
% of Total Res. RE loans |
0.74% |
0.76% |
0.81% |
0.82% |
0.82% |
(3.4%) |
|
Consumer & Other |
138 |
153 |
154 |
130 |
187 |
(49) |
|
% of Total Con./Oth. loans |
0.23% |
0.26% |
0.26% |
0.23% |
0.33% |
(26.2%) |
|
Total Nonaccruing Loans |
2,704 |
2,381 |
2,450 |
2,382 |
2,737 |
(33) |
|
% of Total loans |
0.39% |
0.35% |
0.38% |
0.38% |
0.42% |
(1.2%) |
|
Accruing Restructured Loans |
1,129 |
1,258 |
1,366 |
1,383 |
1,590 |
(461) |
|
Total Nonaccruing & |
$ 3,833 |
$ 3,639 |
$ 3,816 |
$ 3,765 |
$ 4,327 |
$ (494) |
|
% of Total loans |
0.55% |
0.54% |
0.59% |
0.60% |
0.67% |
(11.4%) |
|
Foreclosed Assets |
26 |
94 |
94 |
950 |
994 |
(968) |
|
Total Nonperforming |
$ 3,859 |
$ 3,733 |
$ 3,910 |
$ 4,715 |
$ 5,321 |
$ (1,462) |
|
% of Total assets |
0.44% |
0.43% |
0.46% |
0.56% |
0.65% |
(27.5%) |
“The quarter saw a reduction in our nonperforming ratio to just 44 basis points,” said Mr. Klein. “With net charge-offs for the year of $196,000, our sustained asset quality continues to be at the top of our peers, and we continue to strive toward top decile performance among this group.”
Webcast and Conference Call
The Company will hold a related conference call and webcast on January 26, 2018, at 11:00 a.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.
About SB Financial Group
Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company 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 banking centers; 19 in nine Ohio counties and one center in Fort Wayne, Indiana, and 24 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”. SB Financial’s preferred stock is listed on the NASDAQ Capital Market under the symbol “SBFGP”.
In May 2017, SB Financial was ranked #145 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.
|
SB FINANCIAL GROUP, INC. |
||||||||||||||
|
CONSOLIDATED BALANCE SHEETS – (Unaudited) |
||||||||||||||
|
December |
September |
June |
March |
December |
||||||||||
|
($ in Thousands) |
2017 |
2017 |
2017 |
2017 |
2016 |
|||||||||
|
ASSETS |
||||||||||||||
|
Cash and due from banks |
$ |
26,616 |
28,258 |
21,385 |
45,740 |
17,012 |
||||||||
|
Securities available for sale, at fair value |
82,790 |
85,304 |
103,347 |
107,937 |
90,128 |
|||||||||
|
Other securities – FRB and FHLB Stock |
3,748 |
3,748 |
3,748 |
3,748 |
3,748 |
|||||||||
|
Total investment securities |
86,538 |
89,052 |
107,095 |
111,685 |
93,876 |
|||||||||
|
Loans held for sale |
3,940 |
7,663 |
9,437 |
5,104 |
4,434 |
|||||||||
|
Loans, net of unearned income |
696,615 |
675,075 |
651,589 |
626,722 |
644,433 |
|||||||||
|
Allowance for loan losses |
(7,930) |
(7,760) |
(7,825) |
(7,679) |
(7,725) |
|||||||||
|
Net loans |
688,685 |
667,315 |
643,764 |
619,043 |
636,708 |
|||||||||
|
Premises, equipment and software, net |
21,277 |
21,271 |
20,740 |
19,909 |
19,129 |
|||||||||
|
Cash surrender value of life insurance |
16,479 |
13,692 |
13,859 |
13,791 |
13,725 |
|||||||||
|
Goodwill & other intangibles |
16,411 |
16,414 |
16,417 |
16,419 |
16,422 |
|||||||||
|
Foreclosed assets held for sale, net |
26 |
94 |
94 |
950 |
994 |
|||||||||
|
Mortgage servicing rights |
9,907 |
9,560 |
9,217 |
8,727 |
8,422 |
|||||||||
|
Accrued interest receivable |
1,825 |
1,880 |
1,411 |
1,462 |
1,512 |
|||||||||
|
Other assets |
4,923 |
5,263 |
4,249 |
4,018 |
3,771 |
|||||||||
|
Total assets |
$ |
876,627 |
860,462 |
847,668 |
846,848 |
816,005 |
||||||||
|
LIABILITIES AND EQUITY |
||||||||||||||
|
Deposits |
||||||||||||||
|
Non interest bearing demand |
$ |
135,592 |
124,840 |
124,213 |
124,664 |
125,189 |
||||||||
|
Interest bearing demand |
131,079 |
130,513 |
127,409 |
133,388 |
131,598 |
|||||||||
|
Savings deposits |
103,267 |
103,530 |
104,720 |
103,901 |
95,594 |
|||||||||
|
Money market deposits |
141,844 |
140,647 |
130,987 |
138,915 |
122,976 |
|||||||||
|
Time deposits |
217,818 |
217,277 |
220,004 |
212,047 |
197,716 |
|||||||||
|
Total deposits |
729,600 |
716,807 |
707,333 |
712,915 |
673,073 |
|||||||||
|
Advances from Federal Home Loan Bank |
18,500 |
20,500 |
20,500 |
15,500 |
26,500 |
|||||||||
|
Repurchase agreements |
15,082 |
11,343 |
11,175 |
11,796 |
10,532 |
|||||||||
|
Trust preferred securities |
10,310 |
10,310 |
10,310 |
10,310 |
10,310 |
|||||||||
|
Accrued interest payable |
592 |
611 |
563 |
450 |
408 |
|||||||||
|
Other liabilities |
8,543 |
9,982 |
8,756 |
7,849 |
8,634 |
|||||||||
|
Total liabilities |
782,627 |
769,553 |
758,637 |
758,820 |
729,457 |
|||||||||
|
Equity |
||||||||||||||
|
Preferred shares |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
|||||||||
|
Common shares |
12,569 |
12,569 |
12,569 |
12,569 |
12,569 |
|||||||||
|
Additional paid-in capital |
15,405 |
15,335 |
15,260 |
15,224 |
15,362 |
|||||||||
|
Retained earnings |
55,416 |
51,991 |
49,851 |
48,118 |
46,688 |
|||||||||
|
Accumulated other comprehensive income |
(118) |
335 |
340 |
136 |
51 |
|||||||||
|
Treasury shares |
(3,255) |
(3,304) |
(2,972) |
(2,002) |
(2,105) |
|||||||||
|
Total equity |
94,000 |
90,909 |
89,031 |
88,028 |
86,548 |
|||||||||
|
Total liabilities and equity |
$ |
876,627 |
860,462 |
847,668 |
846,848 |
816,005 |
||||||||
|
SB FINANCIAL GROUP, INC. |
|||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME – (Unaudited) |
|||||||||||||||||
|
($ in thousands – except share data) |
At and for the Three Months Ended |
Twelve Months Ended |
|||||||||||||||
|
December |
September |
June |
March |
December |
December |
December |
|||||||||||
|
Interest income |
2017 |
2017 |
2017 |
2017 |
2016 |
2017 |
2016 |
||||||||||
|
Loans |
|||||||||||||||||
|
Taxable |
$ |
8,096 |
7,653 |
7,243 |
6,800 |
6,984 |
29,792 |
26,846 |
|||||||||
|
Nontaxable |
23 |
21 |
21 |
20 |
20 |
85 |
75 |
||||||||||
|
Securities |
|||||||||||||||||
|
Taxable |
514 |
532 |
569 |
461 |
364 |
2,076 |
1,536 |
||||||||||
|
Nontaxable |
129 |
132 |
133 |
133 |
144 |
527 |
594 |
||||||||||
|
Total interest income |
8,762 |
8,338 |
7,966 |
7,414 |
7,512 |
32,480 |
29,051 |
||||||||||
|
Interest expense |
|||||||||||||||||
|
Deposits |
938 |
907 |
863 |
748 |
709 |
3,456 |
2,578 |
||||||||||
|
Repurchase Agreements & Other |
2 |
4 |
6 |
4 |
2 |
16 |
16 |
||||||||||
|
Federal Home Loan Bank advances |
85 |
86 |
63 |
86 |
86 |
320 |
352 |
||||||||||
|
Trust preferred securities |
83 |
78 |
71 |
70 |
68 |
302 |
252 |
||||||||||
|
Total interest expense |
1,108 |
1,075 |
1,003 |
908 |
865 |
4,094 |
3,198 |
||||||||||
|
Net interest income |
7,654 |
7,263 |
6,963 |
6,506 |
6,647 |
28,386 |
25,853 |
||||||||||
|
Provision for loan losses |
200 |
– |
200 |
– |
500 |
400 |
750 |
||||||||||
|
Net interest income after provision |
|||||||||||||||||
|
for loan losses |
7,454 |
7,263 |
6,763 |
6,506 |
6,147 |
27,986 |
25,103 |
||||||||||
|
Noninterest income |
|||||||||||||||||
|
Wealth Management Fees |
718 |
688 |
704 |
667 |
657 |
2,777 |
2,628 |
||||||||||
|
Customer service fees |
690 |
674 |
667 |
640 |
653 |
2,671 |
2,705 |
||||||||||
|
Gain on sale of mtg. loans & OMSR’s |
1,608 |
2,211 |
2,063 |
1,250 |
2,002 |
7,132 |
8,172 |
||||||||||
|
Mortgage loan servicing fees, net |
465 |
227 |
241 |
383 |
1,324 |
1,316 |
810 |
||||||||||
|
Gain on sale of non-mortgage loans |
122 |
294 |
369 |
430 |
52 |
1,215 |
979 |
||||||||||
|
Data service fees |
179 |
182 |
184 |
193 |
184 |
738 |
917 |
||||||||||
|
Net gain on sales of securities |
– |
119 |
– |
– |
– |
119 |
262 |
||||||||||
|
Gain/(loss) on sale/disposal of assets |
(4) |
8 |
– |
2 |
– |
6 |
177 |
||||||||||
|
Other income |
314 |
458 |
234 |
237 |
256 |
1,243 |
1,239 |
||||||||||
|
Total non-interest income |
4,092 |
4,861 |
4,462 |
3,802 |
5,128 |
17,217 |
17,889 |
||||||||||
|
Noninterest expense |
|||||||||||||||||
|
Salaries and employee benefits |
4,749 |
4,844 |
4,667 |
4,386 |
4,656 |
18,646 |
17,421 |
||||||||||
|
Net occupancy expense |
582 |
566 |
552 |
560 |
533 |
2,260 |
2,145 |
||||||||||
|
Equipment expense |
748 |
688 |
683 |
641 |
735 |
2,760 |
2,618 |
||||||||||
|
Data processing fees |
363 |
429 |
396 |
370 |
384 |
1,558 |
1,380 |
||||||||||
|
Professional fees |
492 |
502 |
417 |
363 |
404 |
1,774 |
1,426 |
||||||||||
|
Marketing expense |
153 |
180 |
206 |
195 |
154 |
734 |
647 |
||||||||||
|
Telephone and communication |
113 |
120 |
113 |
116 |
111 |
462 |
413 |
||||||||||
|
Postage and delivery expense |
118 |
103 |
59 |
174 |
148 |
454 |
661 |
||||||||||
|
State, local and other taxes |
164 |
198 |
170 |
167 |
154 |
699 |
594 |
||||||||||
|
Employee expense |
227 |
242 |
183 |
145 |
182 |
797 |
545 |
||||||||||
|
Other expenses |
397 |
412 |
360 |
265 |
398 |
1,434 |
2,241 |
||||||||||
|
Total non-interest expense |
8,106 |
8,284 |
7,806 |
7,382 |
7,859 |
31,578 |
30,091 |
||||||||||
|
Income before income tax expense |
3,440 |
3,840 |
3,419 |
2,926 |
3,416 |
13,625 |
12,901 |
||||||||||
|
Income tax expense |
(592) |
1,117 |
1,102 |
933 |
1,098 |
2,560 |
4,117 |
||||||||||
|
Net income |
$ |
4,032 |
2,723 |
2,317 |
1,993 |
2,317 |
11,065 |
8,784 |
|||||||||
|
Preferred Share Dividends |
244 |
244 |
244 |
244 |
244 |
975 |
975 |
||||||||||
|
Net income available to common shares |
3,788 |
2,479 |
2,073 |
1,749 |
2,073 |
10,090 |
7,809 |
||||||||||
|
Common share data: |
|||||||||||||||||
|
Basic earnings per common share |
$ |
0.79 |
0.52 |
0.43 |
0.36 |
0.43 |
2.10 |
1.60 |
|||||||||
|
Diluted earnings per common share |
$ |
0.64 |
0.43 |
0.37 |
0.31 |
0.37 |
1.74 |
1.38 |
|||||||||
|
Average shares outstanding ($ in thousands): |
|||||||||||||||||
|
Basic: |
4,790 |
4,797 |
4,827 |
4,855 |
4,846 |
4,817 |
4,877 |
||||||||||
|
Diluted: |
6,329 |
6,326 |
6,351 |
6,387 |
6,359 |
6,351 |
6,376 |
||||||||||
|
SB FINANCIAL GROUP, INC. |
|||||||||||||||
|
CONSOLIDATED FINANCIAL HIGHLIGHTS – (Unaudited) |
|||||||||||||||
|
($ in thousands, except per share data) |
At and for the Three Months Ended |
Twelve Months Ended |
|||||||||||||
|
December |
September |
June |
March |
December |
December |
December |
|||||||||
|
SUMMARY OF OPERATIONS |
2017 |
2017 |
2017 |
2017 |
2016 |
2017 |
2016 |
||||||||
|
Net interest income |
$ |
7,654 |
7,263 |
6,963 |
6,506 |
6,647 |
28,386 |
25,853 |
|||||||
|
Tax-equivalent adjustment |
$ |
78 |
79 |
79 |
79 |
84 |
315 |
260 |
|||||||
|
Tax-equivalent net interest income |
$ |
7,732 |
7,342 |
7,042 |
6,585 |
6,731 |
28,701 |
26,113 |
|||||||
|
Provision for loan loss |
$ |
200 |
– |
200 |
– |
500 |
400 |
750 |
|||||||
|
Noninterest income |
$ |
4,092 |
4,861 |
4,462 |
3,802 |
5,128 |
17,217 |
17,889 |
|||||||
|
Total operating revenue |
$ |
11,746 |
12,124 |
11,425 |
10,308 |
11,775 |
45,603 |
43,742 |
|||||||
|
Noninterest expense |
$ |
8,106 |
8,284 |
7,806 |
7,382 |
7,859 |
31,578 |
30,091 |
|||||||
|
Pre-tax pre-provision income |
$ |
3,640 |
3,840 |
3,619 |
2,926 |
3,916 |
14,025 |
13,651 |
|||||||
|
Pretax income |
$ |
3,440 |
3,840 |
3,419 |
2,926 |
3,416 |
13,625 |
12,901 |
|||||||
|
Net income |
$ |
4,032 |
2,723 |
2,317 |
1,993 |
2,317 |
11,065 |
8,784 |
|||||||
|
Income available to common shareholders |
$ |
3,788 |
2,479 |
2,073 |
1,749 |
2,073 |
10,090 |
7,809 |
|||||||
|
PER SHARE INFORMATION: |
|||||||||||||||
|
Basic earnings per share |
$ |
0.79 |
0.52 |
0.43 |
0.36 |
0.43 |
2.10 |
1.60 |
|||||||
|
Diluted earnings per share |
$ |
0.64 |
0.43 |
0.37 |
0.31 |
0.37 |
1.74 |
1.38 |
|||||||
|
Common dividends |
$ |
0.075 |
0.070 |
0.070 |
0.065 |
0.065 |
0.280 |
0.240 |
|||||||
|
Book value per common share |
$ |
15.03 |
14.55 |
14.21 |
13.92 |
13.75 |
15.03 |
13.75 |
|||||||
|
Tangible book value per common share |
$ |
13.27 |
12.64 |
12.20 |
11.83 |
11.59 |
13.27 |
11.59 |
|||||||
|
Market price per common share |
$ |
18.49 |
17.16 |
16.88 |
16.72 |
16.05 |
18.49 |
16.05 |
|||||||
|
Market price per preferred share |
$ |
17.90 |
16.45 |
16.89 |
16.85 |
15.85 |
17.90 |
15.85 |
|||||||
|
Market price to tangible book value |
139.3% |
135.8% |
138.4% |
141.4% |
138.5% |
139.3% |
138.5% |
||||||||
|
PERFORMANCE RATIOS: |
|||||||||||||||
|
Return on average assets (ROAA) |
1.83% |
1.27% |
1.09% |
0.96% |
1.14% |
1.29% |
1.11% |
||||||||
|
Pre-tax pre-provision ROAA |
1.65% |
1.79% |
1.70% |
1.41% |
1.92% |
1.64% |
1.73% |
||||||||
|
Return on average equity |
17.52% |
12.11% |
10.45% |
9.13% |
10.72% |
12.36% |
10.39% |
||||||||
|
Return on average tangible equity |
26.16% |
18.28% |
15.91% |
14.00% |
16.54% |
18.71% |
16.23% |
||||||||
|
Efficiency ratio |
68.99% |
68.30% |
68.30% |
71.59% |
66.71% |
69.22% |
68.76% |
||||||||
|
Earning asset yield |
4.52% |
4.36% |
4.26% |
4.08% |
4.17% |
4.32% |
4.21% |
||||||||
|
Cost of interest bearing liabilities |
0.69% |
0.68% |
0.64% |
0.60% |
0.58% |
0.65% |
0.55% |
||||||||
|
Net interest margin |
3.92% |
3.77% |
3.69% |
3.55% |
3.64% |
3.74% |
3.70% |
||||||||
|
Tax equivalent effect |
0.04% |
0.04% |
0.04% |
0.04% |
0.05% |
0.04% |
0.05% |
||||||||
|
Net interest margin, tax equivalent |
3.96% |
3.81% |
3.73% |
3.59% |
3.69% |
3.78% |
3.75% |
||||||||
|
Non interest income/Average assets |
1.86% |
2.27% |
2.09% |
1.84% |
2.52% |
2.01% |
2.27% |
||||||||
|
Non interest expense/Average assets |
3.68% |
3.87% |
3.66% |
3.57% |
3.86% |
3.70% |
3.81% |
||||||||
|
Net noninterest expense/Average assets |
1.82% |
1.60% |
1.57% |
1.73% |
1.34% |
1.68% |
1.55% |
||||||||
|
ASSET QUALITY RATIOS: |
|||||||||||||||
|
Gross charge-offs |
$ |
36 |
75 |
69 |
51 |
269 |
231 |
501 |
|||||||
|
Recoveries |
$ |
5 |
10 |
15 |
5 |
175 |
35 |
486 |
|||||||
|
Net charge-offs |
$ |
31 |
65 |
54 |
46 |
95 |
196 |
15 |
|||||||
|
Nonaccruing loans/ Total loans |
0.39% |
0.35% |
0.38% |
0.38% |
0.42% |
0.39% |
0.42% |
||||||||
|
Nonperforming loans/ Total loans |
0.55% |
0.54% |
0.59% |
0.60% |
0.67% |
0.55% |
0.67% |
||||||||
|
Nonperforming assets/ Loans & OREO |
0.55% |
0.55% |
0.60% |
0.75% |
0.82% |
0.55% |
0.82% |
||||||||
|
Nonperforming assets/ Total assets |
0.44% |
0.43% |
0.46% |
0.56% |
0.65% |
0.44% |
0.65% |
||||||||
|
Allowance for loan loss/ Nonperforming loans |
206.89% |
213.25% |
205.06% |
203.96% |
178.53% |
206.89% |
178.53% |
||||||||
|
Allowance for loan loss/ Total loans |
1.14% |
1.15% |
1.20% |
1.23% |
1.20% |
1.14% |
1.20% |
||||||||
|
Net loan charge-offs/ Average loans (ann.) |
0.02% |
0.04% |
0.03% |
0.03% |
0.06% |
0.03% |
0.00% |
||||||||
|
Loan loss provision/ Net charge-offs |
645.16% |
0.00% |
370.37% |
0.00% |
526.32% |
204.08% |
5000.00% |
||||||||
|
CAPITAL & LIQUIDITY RATIOS: |
|||||||||||||||
|
Loans/ Deposits |
95.48% |
94.18% |
92.12% |
87.91% |
95.74% |
95.48% |
95.74% |
||||||||
|
Equity/ Assets |
10.72% |
10.57% |
10.50% |
10.39% |
10.61% |
10.72% |
10.61% |
||||||||
|
Tangible equity/ Tangible assets |
7.39% |
7.17% |
7.05% |
6.94% |
7.02% |
7.39% |
7.02% |
||||||||
|
Tangible equity adjusted for conversion |
9.02% |
8.83% |
8.74% |
8.62% |
8.77% |
9.02% |
8.77% |
||||||||
|
END OF PERIOD BALANCES |
|||||||||||||||
|
Total assets |
$ |
876,627 |
860,462 |
847,668 |
846,848 |
816,005 |
876,627 |
816,005 |
|||||||
|
Total loans |
$ |
696,615 |
675,075 |
651,589 |
626,722 |
644,433 |
696,615 |
644,433 |
|||||||
|
Deposits |
$ |
729,600 |
716,807 |
707,333 |
712,915 |
673,073 |
729,600 |
673,073 |
|||||||
|
Stockholders equity |
$ |
94,000 |
90,909 |
89,031 |
88,028 |
86,548 |
94,000 |
86,548 |
|||||||
|
Goodwill & intangibles |
$ |
16,411 |
16,414 |
16,417 |
16,419 |
16,422 |
16,411 |
16,422 |
|||||||
|
Preferred equity |
$ |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
|||||||
|
Tangible equity |
$ |
63,606 |
60,512 |
58,631 |
57,626 |
56,143 |
63,606 |
56,143 |
|||||||
|
Mortgage servicing portfolio |
$ |
994,915 |
979,251 |
952,364 |
917,435 |
899,710 |
994,915 |
899,710 |
|||||||
|
Wealth/Brokerage assets under care |
$ |
437,034 |
429,777 |
407,268 |
404,290 |
378,131 |
437,034 |
378,131 |
|||||||
|
Total assets under care |
$ |
2,308,576 |
2,269,490 |
2,207,300 |
2,168,573 |
2,093,846 |
2,308,576 |
2,093,846 |
|||||||
|
Full-time equivalent employees |
240 |
237 |
237 |
231 |
227 |
240 |
227 |
||||||||
|
Period end basic shares outstanding |
4,793 |
4,788 |
4,807 |
4,873 |
4,844 |
4,793 |
4,844 |
||||||||
|
Period end outstanding (Series A Converted) |
1,463 |
1,461 |
1,459 |
1,452 |
1,452 |
1,463 |
1,452 |
||||||||
|
AVERAGE BALANCES |
|||||||||||||||
|
Total assets |
$ |
880,446 |
857,147 |
852,526 |
827,514 |
814,423 |
854,569 |
789,045 |
|||||||
|
Total earning assets |
$ |
781,795 |
771,722 |
754,736 |
734,378 |
729,525 |
759,681 |
698,541 |
|||||||
|
Total loans |
$ |
691,929 |
667,943 |
644,658 |
637,490 |
634,664 |
660,675 |
603,875 |
|||||||
|
Deposits |
$ |
731,992 |
712,614 |
717,472 |
683,639 |
672,226 |
711,500 |
645,847 |
|||||||
|
Stockholders equity |
$ |
92,036 |
89,974 |
88,637 |
87,344 |
86,433 |
89,538 |
84,540 |
|||||||
|
Intangibles |
$ |
16,412 |
16,415 |
16,418 |
16,421 |
16,424 |
16,417 |
16,429 |
|||||||
|
Preferred equity |
$ |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
13,983 |
|||||||
|
Tangible equity |
$ |
61,641 |
59,576 |
58,236 |
56,940 |
56,026 |
59,138 |
54,128 |
|||||||
|
Average basic shares outstanding |
4,790 |
4,797 |
4,827 |
4,855 |
4,846 |
4,817 |
4,877 |
||||||||
|
Average diluted shares outstanding |
6,329 |
6,326 |
6,351 |
6,387 |
6,359 |
6,351 |
6,376 |
||||||||
|
SB FINANCIAL GROUP, INC. |
||||||||||
|
Rate Volume Analysis – (Unaudited) |
||||||||||
|
At and for the Three and Twelve Months Ended December 31, 2017 and 2016 |
||||||||||
|
($ in Thousands) |
Three Months Ended Dec. 31, 2017 |
Three Months Ended Dec. 31, 2016 |
||||||||
|
Average |
Average |
Average |
Average |
|||||||
|
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
|
Taxable securities |
$ |
76,268 |
514 |
2.70% |
$ |
80,000 |
364 |
1.82% |
||
|
Nontaxable securities |
13,598 |
195 |
5.75% |
14,861 |
218 |
5.87% |
||||
|
Loans, net |
691,929 |
8,131 |
4.70% |
634,664 |
7,014 |
4.42% |
||||
|
Total earning assets |
781,795 |
8,840 |
4.52% |
729,525 |
7,596 |
4.16% |
||||
|
Cash and due from banks |
37,141 |
29,322 |
||||||||
|
Allowance for loan losses |
(7,842) |
(7,511) |
||||||||
|
Premises and equipment |
21,424 |
18,981 |
||||||||
|
Other assets |
47,928 |
44,106 |
||||||||
|
Total assets |
$ |
880,446 |
$ |
814,423 |
||||||
|
Liabilities |
||||||||||
|
Savings and interest bearing demand |
$ |
378,278 |
219 |
0.23% |
$ |
349,892 |
143 |
0.16% |
||
|
Time deposits |
216,969 |
719 |
1.33% |
196,645 |
566 |
1.15% |
||||
|
Repurchase agreements & Other |
13,220 |
2 |
0.06% |
11,493 |
2 |
0.07% |
||||
|
Advances from Federal Home Loan Bank |
20,283 |
85 |
1.68% |
24,348 |
86 |
1.41% |
||||
|
Trust preferred securities |
10,310 |
83 |
3.22% |
10,310 |
68 |
2.64% |
||||
|
Total interest bearing liabilities |
639,060 |
1,108 |
0.69% |
592,688 |
865 |
0.58% |
||||
|
Non interest bearing demand |
136,745 |
– |
125,689 |
– |
||||||
|
Total funding |
775,805 |
0.57% |
718,377 |
0.48% |
||||||
|
Other liabilities |
12,605 |
9,613 |
||||||||
|
Total liabilities |
788,410 |
727,990 |
||||||||
|
Equity |
92,036 |
86,433 |
||||||||
|
Total liabilities and equity |
$ |
880,446 |
$ |
814,423 |
||||||
|
Net interest income (tax equivalent basis) |
$ 7,732 |
$ 6,731 |
||||||||
|
Net interest income as a percent of average interest-earning assets |
3.96% |
3.69% |
||||||||
|
Twelve Months Ended Dec. 31, 2017 |
Twelve Months Ended Dec. 31, 2016 |
|||||||||
|
Average |
Average |
Average |
Average |
|||||||
|
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
|
Taxable securities |
$ |
84,918 |
2,076 |
2.44% |
$ |
79,301 |
1,536 |
1.94% |
||
|
Nontaxable securities |
14,088 |
798 |
5.67% |
15,365 |
900 |
5.86% |
||||
|
Loans, net |
660,675 |
29,921 |
4.53% |
603,875 |
26,960 |
4.46% |
||||
|
Total earning assets |
759,681 |
32,795 |
4.32% |
698,541 |
29,396 |
4.21% |
||||
|
Cash and due from banks |
35,337 |
34,999 |
||||||||
|
Allowance for loan losses |
(7,828) |
(7,389) |
||||||||
|
Premises and equipment |
21,084 |
19,124 |
||||||||
|
Other assets |
46,295 |
43,770 |
||||||||
|
Total assets |
$ |
854,569 |
$ |
789,045 |
||||||
|
Liabilities |
||||||||||
|
Savings and interest bearing demand |
$ |
369,114 |
795 |
0.22% |
$ |
345,302 |
524 |
0.15% |
||
|
Time deposits |
214,639 |
2,661 |
1.24% |
184,640 |
2,054 |
1.11% |
||||
|
Repurchase agreements & Other |
12,350 |
16 |
0.13% |
15,027 |
16 |
0.11% |
||||
|
Advances from Federal Home Loan Bank |
20,000 |
320 |
1.60% |
23,892 |
352 |
1.47% |
||||
|
Trust preferred securities |
10,310 |
302 |
2.93% |
10,310 |
252 |
2.44% |
||||
|
Total interest bearing liabilities |
626,413 |
4,094 |
0.65% |
579,171 |
3,198 |
0.55% |
||||
|
Non interest bearing demand |
127,747 |
0.54% |
115,905 |
0.46% |
||||||
|
Total funding |
754,160 |
695,076 |
||||||||
|
Other liabilities |
10,871 |
9,429 |
||||||||
|
Total liabilities |
765,031 |
704,505 |
||||||||
|
Equity |
89,538 |
84,540 |
||||||||
|
Total liabilities and equity |
$ |
854,569 |
$ |
789,045 |
||||||
|
Net interest income (tax equivalent basis) |
$ 28,701 |
$ 26,198 |
||||||||
|
Net interest income as a percent of average interest-earning assets |
3.78% |
3.75% |
||||||||
View original content:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-fourth-quarter-and-full-year-2017-results-300588576.html
SOURCE SB Financial Group, Inc.
Related Links
http://www.yoursbfinancial.com
