DEFIANCE, Ohio, July 21, 2016 /PRNewswire/ -- SB Financial Group, Inc. (NASDAQ: SBFG) ('SB Financial' or the 'Company'), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, item and statement processing services, today reported earnings for the second-quarter and six-months ended June 30, 2016.

Second-quarter 2016 highlights over prior-year second quarter include:

  • Net income of $2.3 million, an increase of 13.8 percent
  • Diluted earnings per share (EPS) of $0.35, an increase of 12.9 percent
  • Loan growth from the prior year of $82.4 million, or 15.8 percent, and from the linked quarter $27.6 million, or 4.8 percent
  • Deposit growth from the prior year of $85.4 million, or 15.2 percent
  • Fully Taxable Equivalent (FTE) net interest margin of 3.75 percent, down 1 basis point
  • Mortgage origination volume of $110.2 million, an increase of 17.7 percent; servicing portfolio $831.8 million

Six-months ended June 30, 2016, highlights over prior-year six months include:

  • Net income of $3.9 million, an increase of 12.4 percent
  • Diluted earnings per share of $0.61, an increase of 13.0 percent

Highlights

Three Months Ended

Six Months Ended

($000's except ratios and share data)

Jun. 2016

Jun. 2015

% Change

Jun. 2016

Jun. 2015

% Change

Operating revenue (FTE)

$ 10,819

$ 10,301

5.0%

$20,455

$19,522

4.8%

Interest income (FTE)

7,302

6,509

12.2

14,214

12,777

11.2

Interest expense

790

651

21.4

1,505

1,294

16.3

Net interest income (FTE)

6,512

5,858

11.2

12,709

11,483

10.7

Noninterest income

4,307

4,443

(3.1)

7,746

8,039

(3.6)

Noninterest expense

7,407

6,818

8.6

14,302

13,462

6.2

Net income

2,265

1,991

13.8

3,920

3,487

12.4

Earnings per diluted share

0.35

0.31

12.9

0.61

0.54

13.0

Net interest margin (FTE)

3.75%

3.76%

(0.3)

3.75%

3.74%

0.3

Return on assets

1.15%

1.11%

3.6

1.01%

0.98%

3.1

Return on equity

10.80%

10.26%

5.3

9.43%

9.05%

4.2

'We continued to execute successfully on our strategy to move our overall performance to a higher level,' said Mark Klein, Chairman, President and CEO of SB Financial. 'Our results for the second quarter reflected this progress, with a 12.9 percent increase in EPS compared to the prior-year quarter.'

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income (FTE) and noninterest income, was up 5.0 percent from the second quarter of 2015, and up 12.5 percent from the linked quarter.

  • Net interest income (FTE) was up 11.2 percent from the year-ago quarter, and up 5.1 percent over the linked quarter.
  • Net interest margin (FTE) was down 1 basis point from the year-ago quarter, and flat to the linked quarter.
  • Noninterest income was down 3.1 percent from the year-ago quarter, but up 25.2 percent from the linked quarter.
  • Total revenue (FTE) for the first six months of 2016 was $20.5 million compared to $19.5 million for the first six months of 2015, which is a 4.8 percent increase.

Mortgage Loan Business

Mortgage loan originations for the second quarter of 2016 were $110.2 million, up $16.6 million, or 17.7 percent, from the year-ago quarter. Total sales of originated loans were $95.2 million, up $15.3 million, or 19.2 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 $2.0 million for the second quarter of 2016, compared to $2.3 million for the year-ago quarter, or a 12.3 percent decrease. The mortgage servicing valuation adjustment for the second-quarter 2016 was a negative $0.5 million, compared to a positive adjustment for the second quarter of 2015 of $0.3 million. The aggregate servicing valuation impairment ended the quarter at $1.5 million. The mortgage servicing portfolio at June 30, 2016, was $831.8 million, up $108.7 million, or 15.0 percent, from $723.1 million at June 30, 2015.

Mr. Klein noted, 'The entire mortgage production team turned in one of our best quarters in recent years. Our effective efforts drove portfolio growth to an all-time high, as new money production accounted for 90 percent of our volume. Our strong performance was offset by the 35 basis point decline in the 10-year Treasury, which resulted in an additional $500 thousand impairment to our servicing rights.'

Mortgage Banking ($000's)

Jun. 2016

Mar. 2016

Dec. 2015

Sep. 2015

Jun. 2015

Mortgage originations

$ 110,210

$ 71,941

$ 67,149

$ 86,965

$ 93,605

Mortgage sales

95,150

59,383

56,302

70,081

79,806

Mortgage servicing portfolio

831,781

792,666

772,533

750,958

723,100

Mortgage servicing rights

6,494

6,608

7,152

6,798

6,548

Mortgage servicing revenue:

Loan servicing fees

505

491

476

459

438

OMSR amortization

(309)

(170)

(157)

(223)

(219)

Net administrative fees

196

321

319

236

219

OMSR valuation adjustment

(469)

(767)

64

(138)

268

Net loan servicing fees

(273)

(446)

383

98

487

Gain on sale of mortgages

2,284

1,383

1,372

1,687

1,805

Mortgage banking revenue, net

$2,011

$937

$1,755

$1,785

$2,292

Fee Income and Noninterest Expense

SB Financial's fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and from sales of small business loans (SBA). Wealth management assets managed within our 900 accounts stood at $367.2 million as of June 30, 2016. For the second quarter of 2016, fee income as a percentage of total revenue was 40.1 percent. The servicing rights impairment negatively impacted the quarter by $0.5 million.

For the second quarter of 2016, noninterest expense (NIE) of $7.4 million, was up $0.6 million, or 8.6 percent, compared to the same quarter last year. Total staffing levels were up 7.7 percent, due to our new branch locations and increased support in our compliance and mortgage divisions. Compared to the linked quarter, NIE was up $0.5 million, or 7.4 percent.

Mr. Klein stated, 'Once again, total fee income was up significantly, even with the impairment of our mortgage servicing rights; non-interest income continues to represent more than 40 percent of total revenue. Our strategy to diversify our revenue streams is delivering bottom-line improvement.'

Fee Income / Noninterest Expense

($000's)

Jun. 2016

Mar. 2016

Dec. 2015

Sep. 2015

Jun. 2015

Fee Income

$ 4,307

$ 3,439

$ 3,716

$ 3,952

$ 4,443

Fee Income / Total Revenue

40.1%

36.0%

38.3%

39.4%

43.5%

Fee Income / Average Assets

2.2%

1.8%

2.0%

2.2%

2.5%

Noninterest Expense

$ 7,407

$ 6,895

$ 6,839

$ 6,626

$ 6,818

Efficiency Ratio

69.0%

72.2%

70.2%

65.6%

66.3%

NIE / Average Assets

3.8%

3.6%

3.7%

3.7%

3.8%

Balance Sheet

Total assets as of June 30, 2016, were $793.2 million, up $86.0 million, or 12.2 percent, from a year ago. Total equity as of June 30, 2016, was $85.0 million, up 8.7 percent, from a year ago, and was at 10.7 percent of total assets.

Total loans held for investment were $604.8 million at June 30, 2016, up $82.4 million, or 15.8 percent, from June 30, 2015. Commercial real estate loans accounted for the majority of growth, up $37.9 million, or 16.9 percent. Residential real estate and commercial loans also rose $18.6 million and $16.4 million, or 15.9 percent and 19.4 percent, respectively.

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $96.2 million represented 12.1 percent of assets at June 30, 2016, and was down 6.2 percent from the year-ago period. Deposit balances of $648.3 million at June 30, 2016, increased by $85.4 million, or 15.2 percent, since June 30, 2015. Growth from the prior year included $16.9 million in checking and $68.5 million in savings and time deposit balances.

Mr. Klein said, 'Loan growth for the quarter of $28 million continued to drive net interest income and top-line revenue higher. For the year, loan balances have grown more than $47 million and provided the expansion of our operating revenue by more than 25 percent from the linked quarter. Our growth comes on the heels of our hard work to achieve and maintain top-quartile asset quality metrics.'

Loan Portfolio ($000's)

Jun. 2016

Mar. 2016

Dec. 2015

Sep. 2015

Jun. 2015

Variance YOY

Commercial

$ 100,651

$ 92,086

$ 86,586

$ 83,741

$ 84,297

$ 16,354

% of Total

16.6%

16.0%

15.5%

15.5%

16.0%

19.4%

Commercial RE

261,923

256,461

242,208

231,249

223,994

37,929

% of Total

43.3%

44.4%

43.4%

42.8%

42.9%

16.9%

Agriculture

52,375

42,467

43,835

46,102

45,724

6,651

% of Total

8.7%

7.4%

7.9%

8.5%

8.8%

14.5%

Residential RE

135,506

132,627

130,806

126,840

116,944

18,562

% of Total

22.4%

23.0%

23.5%

23.5%

22.4%

15.9%

Consumer & Other

54,321

53,493

54,224

52,957

51,444

2,877

% of Total

9.0%

9.3%

9.7%

9.7%

9.9%

5.6%

Total Loans

$604,776

$577,134

$557,659

$540,889

$522,403

$ 82,373

Total Growth Percentage

15.8%

Deposit Bal. ($000's)

Jun. 2016

Mar. 2016

Dec. 2015

Sep. 2015

Jun. 2015

Variance YOY

Non-Int DDA

$ 110,899

$ 112,209

$ 113,113

$ 102,460

$ 96,322

$ 14,577

% of Total

17.1%

17.6%

19.3%

17.9%

17.1%

15.1%

Interest DDA

129,658

138,235

126,443

126,816

127,362

2,296

% of Total

20.0%

21.7%

21.6%

22.1%

22.6%

1.8%

Savings

84,975

86,038

83,447

77,809

78,729

6,246

% of Total

13.1%

13.5%

14.2%

13.6%

14.0%

7.9%

Money Market

134,365

120,672

104,412

107,538

100,315

34,050

% of Total

20.7%

18.9%

17.8%

18.7%

17.8%

33.9%

Certificates

188,403

180,874

159,038

158,945

160,198

28,205

% of Total

29.1%

28.4%

27.1%

27.7%

28.5%

17.6%

Total Deposits

$648,300

$638,028

$586,453

$573,568

$562,926

$ 85,374

Total Growth Percentage

15.2%

Asset Quality

SB Financial continues to maintain above peer median asset quality, reporting nonperforming assets of $8.2 million as of June 30, 2016, up $2.8 million, or 52.9 percent, from the year-ago quarter, but slightly down from the linked quarter. The increase from the prior year was the result of an existing delinquent commercial real estate credit that has moved to foreclosure. The Company feels the valuation of the property will approximate the loan commitment when the situation is resolved. SB Financial's 1.0 percent of nonperforming assets to total assets remains near the top quartile in its 65-bank peer group. The coverage of problem loans by the loan loss allowance was 92.3 percent at June 30, 2016, down from the 134.6 percent at June 30, 2015.

Summary of Nonperforming Assets ($000's)

Nonperforming Category

Jun. 2016

Mar. 2016

Dec. 2015

Sep. 2015

Jun. 2015

Variance YOY

Commercial & Agriculture

$ 158

$ 164

$ 196

$ 453

$702

$(544)

% of Total Com./Ag. loans

0.12%

0.12%

0.15%

0.35%

0.54%

(77.5%)

Commercial RE

5,309

5,218

5,670

5,393

2,023

3,286

% of Total CRE loans

2.02%

2.03%

2.34%

2.33%

0.90%

162.4%

Residential RE

1,088

1,156

749

795

772

316

% of Total Res. RE loans

0.80%

0.87%

0.57%

0.63%

0.66%

40.9%

Consumer & Other

138

46

32

101

112

26

% of Total Cons./Oth. loans

0.25%

0.09%

0.06%

0.20%

0.22%

23.2%

Total Nonaccruing Loans

6,693

6,584

6,646

6,742

3,609

3,084

% of Total loans

1.11%

1.14%

1.19%

1.25%

0.69%

85.4%

Accruing Restructured Loans

1,381

1,482

1,500

1,576

1,595

Total Nonaccruing & Restructured Loans

$ 8,074

$ 8,066

$ 8,146

$ 8,318

$ 5,204

$ 2,870

% of Total loans

1.34%

1.40%

1.46%

1.54%

1.00%

55.2%

Foreclosed Assets

157

406

286

188

180

Total Nonperforming Assets

$ 8,231

$ 8,472

$ 8,432

$ 8,506

$ 5,384

$ 2,847

% of Total assets

1.04%

1.09%

1.15%

1.18%

0.76%

52.9%

Webcast and Conference Call

The Company will hold a related conference call and webcast on July 22, 2016, 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 http://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company with two operating subsidiaries: State Bank and DCM. State Bank provides a full range of financial services for consumers and small businesses, including wealth management, mortgage banking and commercial and agricultural lending, operating through a total of 19 banking centers; 18 in nine Ohio counties and one center in Fort Wayne, Indiana, and 22 full-service ATMs. The Company has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. DCM provides item processing services to community banks located primarily in the Midwest. SB Financial's common stock is listed on the NASDAQ Capital Market under the symbol 'SBFG'. SB Financial's preferred stock is listed on the NASDAQ Capital Market under the symbol 'SBFGP'.

In May 2016, SB Financial was ranked #160 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)

June

March

December

September

June

($ in Thousands)

2016

2016

2015

2015

2015

ASSETS

Cash and due from banks

$

29,945

35,529

20,459

18,372

21,709

Securities available for sale, at fair value

92,472

97,990

89,789

95,482

98,786

Other securities - FRB and FHLB Stock

3,748

3,748

3,748

3,748

3,748

Total investment securities

96,220

101,738

93,537

99,230

102,534

Loans held for sale

8,441

6,890

7,516

8,517

10,067

Loans, net of unearned income

604,776

577,134

557,659

540,889

522,403

Allowance for loan losses

(7,450)

(7,205)

(6,990)

(7,076)

(7,006)

Net loans

597,326

569,929

550,669

533,813

515,397

Premises, equipment and software, net

18,806

18,994

19,010

17,619

16,432

Cash surrender value of life insurance

13,581

13,509

13,437

13,364

13,291

Goodwill & other intangibles

16,429

16,432

16,435

16,473

16,527

Foreclosed assets held for sale, net

157

406

286

188

180

Mortgage servicing rights

6,494

6,608

7,152

6,798

6,548

Accrued interest receivable

1,397

1,489

1,260

1,817

1,506

Other assets

4,367

3,296

3,310

3,046

3,017

Total assets

$

793,163

774,820

733,071

719,237

707,208

LIABILITIES AND EQUITY

Deposits

Non interest bearing demand

$

110,899

112,209

113,113

102,460

96,322

Interest bearing demand

129,658

138,235

126,443

126,816

127,362

Savings

84,975

86,038

83,447

77,809

78,729

Money market

134,365

120,672

104,412

107,538

100,315

Time deposits

188,403

180,874

159,038

158,945

160,198

Total deposits

648,300

638,028

586,453

573,568

562,926

Advances from Federal Home Loan Bank

23,000

21,000

35,000

30,000

34,000

Repurchase agreements

17,797

14,524

12,406

16,911

15,169

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Accrued interest payable

384

343

264

341

289

Other liabilities

8,422

7,564

7,397

7,782

6,391

Total liabilities

708,213

691,769

651,830

638,912

629,085

Equity

Preferred stock

13,983

13,983

13,983

13,983

13,983

Common stock

12,569

12,569

12,569

12,569

12,569

Additional paid-in capital

15,367

15,365

15,438

15,444

15,424

Retained earnings

42,925

41,199

40,059

38,705

36,930

Accumulated other comprehensive income

1,552

1,296

650

1,157

750

Treasury stock

(1,446)

(1,361)

(1,458)

(1,533)

(1,533)

Total equity

84,950

83,051

81,241

80,325

78,123

Total liabilities and equity

$

793,163

774,820

733,071

719,237

707,208

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands - except share data)

At and for the Three Months Ended

Six Months Ended

June

March

December

September

June

June

June

Interest income

2016

2016

2015

2015

2015

2016

2015

Loans

Taxable

$

6,648

6,260

6,086

6,152

5,835

12,908

11,454

Nontaxable

24

9

10

10

9

33

15

Securities

Taxable

392

402

357

382

395

794

767

Nontaxable

149

156

169

173

175

305

352

Total interest income

7,213

6,827

6,622

6,717

6,414

14,040

12,588

Interest expense

Deposits

647

545

492

492

500

1,192

995

Repurchase Agreements & Other

4

5

3

5

4

9

9

Federal Home Loan Bank advances

77

106

95

94

94

183

186

Trust preferred securities

62

59

56

53

53

121

104

Total interest expense

790

715

646

644

651

1,505

1,294

Net interest income

6,423

6,112

5,976

6,073

5,763

12,535

11,294

Provision for loan losses

-

250

150

100

500

250

850

Net interest income after provision

for loan losses

6,423

5,862

5,826

5,973

5,263

12,285

10,444

Noninterest income

Wealth Management Fees

643

633

645

636

666

1,276

1,325

Customer service fees

680

680

711

734

702

1,360

1,334

Gain on sale of mtg. loans & OMSR's

2,284

1,383

1,372

1,687

1,805

3,667

3,205

Mortgage loan servicing fees, net

(273)

(446)

383

98

486

(719)

545

Gain on sale of non-mortgage loans

151

449

75

296

288

600

575

Data service fees

233

277

273

294

306

510

623

Net gain on sales of securities

92

111

-

-

-

203

-

Gain/(loss) on sale/disposal of assets

186

22

38

-

(1)

208

(20)

Other income

311

330

219

207

191

641

452

Total non-interest income

4,307

3,439

3,716

3,952

4,443

7,746

8,039

Noninterest expense

Salaries and employee benefits

4,314

3,779

3,855

3,650

3,935

8,093

7,412

Net occupancy expense

524

565

479

481

480

1,089

983

Equipment expense

639

595

566

568

524

1,234

1,089

Data processing fees

339

305

264

286

247

644

510

Professional fees

326

316

381

416

426

642

866

Marketing expense

199

171

157

146

142

370

291

Telephone and communication

102

99

103

96

98

201

188

Postage and delivery expense

162

197

168

198

201

359

435

State, local and other taxes

171

99

130

130

128

270

257

Employee expense

128

118

126

126

138

246

291

Intangible amortization expense

3

3

37

54

55

6

109

Other expenses

500

648

573

475

444

1,148

1,031

Total non-interest expense

7,407

6,895

6,839

6,626

6,818

14,302

13,462

Income before income tax expense

3,323

2,406

2,703

3,299

2,888

5,729

5,021

Income tax expense

1,058

751

835

1,035

897

1,809

1,534

Net income

$

2,265

1,655

1,868

2,264

1,991

3,920

3,487

Preferred Stock Dividends

244

244

244

244

244

488

469

Net income available to common shares

2,021

1,411

1,624

2,020

1,747

3,433

3,018

Common share data:

Basic earnings per common share

$

0.41

0.29

0.33

0.41

0.36

0.70

0.62

Diluted earnings per common share

$

0.35

0.26

0.29

0.35

0.31

0.61

0.54

Average shares outstanding ($ in thousands):

Basic:

4,893

4,896

4,890

4,884

4,884

4,894

4,882

Diluted:

6,390

6,401

6,396

6,390

6,382

6,396

6,381

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share data)

At and for the Three Months Ended

Six Months Ended

June

March

December

September

June

June

June

SUMMARY OF OPERATIONS

2016

2016

2015

2015

2015

2016

2015

Net interest income

$

6,423

6,112

5,976

6,073

5,763

12,535

11,294

Tax-equivalent adjustment

$

89

85

92

94

95

174

189

Tax-equivalent net interest income

$

6,512

6,197

6,068

6,167

5,858

12,709

11,483

Provision for loan loss

$

-

250

150

100

500

250

850

Noninterest income

$

4,307

3,439

3,716

3,952

4,443

7,746

8,039

Total revenue, tax-equivalent

$

10,819

9,636

9,784

10,119

10,301

20,455

19,522

Noninterest expense

$

7,407

6,895

6,839

6,626

6,818

14,302

13,462

Pre-tax pre-provision income

$

3,323

2,656

2,853

3,399

3,388

5,979

5,871

Pretax income

$

3,323

2,406

2,703

3,299

2,888

5,729

5,021

Net income

$

2,265

1,655

1,868

2,264

1,991

3,920

3,487

Income available to common shareholders

$

2,021

1,411

1,624

2,020

1,747

3,433

3,018

PER SHARE INFORMATION:

Basic earnings per share

$

0.41

0.29

0.33

0.41

0.36

0.70

0.62

Diluted earnings per share

$

0.35

0.26

0.29

0.35

0.31

0.61

0.54

Common dividends

$

0.060

0.055

0.055

0.050

0.050

0.115

0.095

Book value per common share

$

13.39

13.07

12.81

12.68

12.33

13.39

12.33

Tangible book value per common share

$

11.15

10.74

10.39

10.21

9.75

11.15

9.75

Market price per common share

$

10.87

10.31

11.14

10.27

10.59

10.87

10.59

Market price per preferred share

$

11.83

11.19

12.65

13.00

11.75

11.83

11.75

PERFORMANCE RATIOS:

Return on average assets (ROAA)

1.15%

0.87%

1.02%

1.26%

1.11%

1.01%

0.98%

Pre-tax pre-provision ROAA

1.69%

1.40%

1.56%

1.89%

1.89%

1.55%

1.64%

Return on average equity

10.80%

8.03%

9.23%

11.42%

10.26%

9.43%

9.05%

Return on average tangible equity

16.94%

12.74%

14.80%

18.55%

16.90%

14.87%

14.99%

Efficiency ratio

69.00%

72.16%

70.18%

65.56%

66.26%

70.49%

69.07%

Earning asset yield

4.20%

4.18%

4.17%

4.27%

4.18%

4.19%

4.16%

Cost of interest bearing liabilities

0.55%

0.51%

0.49%

0.49%

0.49%

0.53%

0.49%

Net interest margin

3.69%

3.69%

3.71%

3.81%

3.70%

3.69%

3.68%

Tax equivalent effect

0.06%

0.06%

0.05%

0.06%

0.06%

0.06%

0.06%

Net interest margin, tax equivalent

3.75%

3.75%

3.76%

3.87%

3.76%

3.75%

3.74%

Non interest income/Average assets

2.20%

1.81%

2.03%

2.20%

2.48%

2.00%

2.25%

Non interest expense/Average assets

3.78%

3.62%

3.74%

3.69%

3.81%

3.70%

3.77%

Net noninterest expense/Average assets

1.58%

1.82%

1.71%

1.49%

1.33%

1.70%

1.52%

ASSET QUALITY RATIOS:

Gross charge-offs

$

2

94

241

58

350

96

653

Recoveries

$

247

59

5

29

26

306

37

Net charge-offs

$

(245)

35

236

29

324

(210)

616

Nonaccruing loans/ Total loans

1.11%

1.14%

1.19%

1.25%

0.69%

1.11%

0.69%

Nonperforming loans/ Total loans

1.34%

1.40%

1.46%

1.54%

1.00%

1.34%

1.00%

Nonperforming assets/ Loans & OREO

1.36%

1.47%

1.51%

1.57%

1.03%

1.36%

1.03%

Nonperforming assets/ Total assets

1.04%

1.09%

1.15%

1.18%

0.76%

1.04%

0.76%

Allowance for loan loss/ Nonperforming loans

92.27%

89.33%

85.81%

85.07%

134.63%

92.27%

134.63%

Allowance for loan loss/ Total loans

1.23%

1.25%

1.25%

1.31%

1.34%

1.23%

1.34%

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

(0.16%)

0.02%

0.17%

0.02%

0.25%

(0.07%)

0.24%

Loan loss provision/ Net charge-offs

0.00%

714.29%

63.56%

344.83%

154.32%

(119.05%)

137.99%

CAPITAL & LIQUIDITY RATIOS:

Loans/ Deposits

93.29%

90.46%

95.09%

94.30%

92.80%

93.29%

92.80%

Equity/ Assets

10.71%

10.72%

11.08%

11.17%

11.05%

10.71%

11.05%

Tangible equity/ Tangible assets

7.02%

6.94%

7.09%

7.10%

6.89%

7.02%

6.89%

Tangible equity adjusted for conversion

8.82%

8.78%

9.04%

9.09%

8.92%

8.82%

8.92%

END OF PERIOD BALANCES

Total assets

$

793,163

774,820

733,071

719,237

707,208

793,163

707,208

Total loans

$

604,776

577,134

557,659

540,889

522,403

604,776

522,403

Deposits

$

648,300

638,028

586,453

573,568

562,926

648,300

562,926

Stockholders equity

$

84,950

83,051

81,241

80,325

78,123

84,950

78,123

Goodwill & intangibles

$

16,429

16,432

16,435

16,473

16,527

16,429

16,527

Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

Tangible equity

$

54,538

52,636

50,823

49,869

47,613

54,538

47,613

Mortgage servicing portfolio

$

831,781

792,666

772,533

750,958

723,100

831,781

723,100

Wealth/Brokerage assets under care

$

367,223

357,531

353,488

347,136

361,310

367,223

361,310

Total assets under care

$

1,992,167

1,925,017

1,859,092

1,817,331

1,791,618

1,992,167

1,791,618

Full-time equivalent employees

223

218

214

209

207

223

207

Period end basic shares outstanding

4,892

4,900

4,891

4,884

4,884

4,892

4,884

Period end outstanding (Series A Converted)

1,453

1,452

1,451

1,451

1,451

1,453

1,451

AVERAGE BALANCES

Total assets

$

784,353

761,143

731,198

718,591

716,736

772,805

714,056

Total earning assets

$

694,629

661,891

644,783

638,266

622,643

678,259

614,345

Total loans

$

596,724

568,925

549,877

538,646

521,477

582,824

518,756

Deposits

$

644,429

616,124

585,922

572,801

576,250

630,216

572,441

Stockholders equity

$

83,894

82,378

80,911

79,301

77,649

83,148

77,090

Intangibles

$

16,431

16,434

16,450

16,500

16,555

16,432

16,582

Preferred equity

$

13,983

13,983

13,983

13,983

13,983

13,983

13,983

Tangible equity

$

53,480

51,961

50,478

48,818

47,111

52,733

46,525

Average basic shares outstanding

4,893

4,896

4,890

4,884

4,884

4,894

4,882

Average diluted shares outstanding

6,390

6,401

6,396

6,390

6,382

6,396

6,381

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

At and for the Three Months Ended June 30, 2016 and 2015

($ in Thousands)

Three Months Ended June 30, 2016

Three Months Ended June 30, 2015

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

82,418

392

1.90%

$

83,414

395

1.89%

Nontaxable securities

15,487

226

5.83%

17,752

265

5.97%

Loans, net

596,724

6,684

4.48%

521,477

5,849

4.49%

Total earning assets

694,629

7,302

4.20%

622,643

6,509

4.18%

Cash and due from banks

34,704

42,580

Allowance for loan losses

(7,429)

(6,943)

Premises and equipment

19,192

16,113

Other assets

43,257

42,343

Total assets

$

784,353

$

716,736

Liabilities

Savings and interest bearing demand

$

345,418

127

0.15%

$

312,229

83

0.11%

Time deposits

185,674

520

1.12%

164,843

417

1.01%

Repurchase agreements & Other

15,066

4

0.11%

14,254

4

0.11%

Advances from Federal Home Loan Bank

21,176

77

1.45%

30,044

94

1.25%

Trust preferred securities

10,310

62

2.41%

10,310

53

2.06%

#DIV/0!

Total interest bearing liabilities

577,644

790

0.55%

531,680

651

0.49%

Non interest bearing demand

113,337

-

99,178

-

Total funding

690,981

0.46%

630,858

0.41%

Other liabilities

9,478

8,229

Total liabilities

700,459

639,087

Equity

83,894

77,649

Total liabilities and equity

$

784,353

$

716,736

Net interest income (tax equivalent basis)

$ 6,512

$ 5,858

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

3.75%

3.76%

Six Months Ended June 30, 2016

Six Months Ended June 30, 2015

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

79,517

794

2.00%

$

77,680

767

1.97%

Nontaxable securities

15,918

462

5.81%

17,909

533

5.95%

Loans, net

582,824

12,958

4.45%

518,756

11,477

4.42%

Total earning assets

678,259

14,214

4.19%

614,345

12,777

4.16%

Cash and due from banks

39,001

48,149

Allowance for loan losses

(7,274)

(6,895)

Premises and equipment

19,299

15,254

Other assets

43,520

43,203

Total assets

$

772,805

$

714,056

Liabilities

Savings and interest bearing demand

$

341,141

240

0.14%

$

310,138

160

0.10%

Time deposits

176,485

952

1.08%

164,376

835

1.02%

Repurchase agreements & Other

15,792

9

0.11%

15,442

9

0.12%

Advances from Federal Home Loan Bank

24,113

183

1.52%

30,022

186

1.24%

Trust preferred securities

10,310

121

2.35%

10,310

104

2.02%

Total interest bearing liabilities

567,841

1,505

0.53%

530,288

1,294

0.49%

Non interest bearing demand

112,590

0.44%

97,927

0.41%

Total funding

680,431

Other liabilities

9,226

8,751

Total liabilities

1,370,088

636,966

Equity

83,148

77,090

Total liabilities and equity

$

1,453,236

$

714,056

Net interest income (tax equivalent basis)

$ 12,709

$ 11,483

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

3.75%

3.74%

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-second-quarter-and-six-month-2016-results-300302385.html

SOURCE SB Financial Group, Inc.

SB Financial Group Inc. published this content on 21 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 July 2016 20:38:04 UTC.

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