By DEFIANCE, Ohio, Jan. 21, 2014 /PRNewswire/ -- SB Financial Group, Inc. (NASDAQ: SBFG), a diversified financial services company providing full-service community banking, mortgage banking, wealth management and item processing services, today reported earnings for the fourth-quarter and full-year ended December 31, 2013.
Highlights* Three Months Full Year
Ended
-----
(in $000's except ratios and per share data) Dec. Dec. 2013 2012
2013 2012
---
Net interest income (FTE) $5,096 $5,247 $21,210 $21,091
Noninterest income 2,949 4,648 14,046 14,845
Noninterest expense 6,199 7,212 26,511 27,484
Net income 1,224 1,524 5,205 4,814
Earnings per share 0.25 0.31 1.07 0.99
Net interest margin (FTE) 3.57% 3.72% 3.75% 3.76%
Return on assets 0.76 0.95 0.81 0.75
Return on equity 8.75 11.64 9.52 9.57
----------------
*Consolidated earnings for SB Financial include the results of the Company's Banking Group, consisting
primarily of The State Bank and Trust Company ("State Bank" or the "Bank"), and the Company's data
services subsidiary, Rurbanc Data Services, Inc. (dba "RDSI Banking Systems" or "RDSI").
"Overall, we are pleased with our 2013 financial results, which reflect a year of steady progress for SB Financial Group. We are even more pleased with our solid positioning as we enter 2014," said Mark Klein, President and CEO of SB Financial Group. "In the past 12 months, the Company accomplished a number of important initiatives, including rebranding the Company as SB Financial Group and strategically focusing our business efforts on our core banking competencies."
Mr. Klein added, "We continue to make significant progress in the execution of our strategic plan -- diversifying our sources of revenue, expanding our loan portfolio, reducing our expenses and improving our asset quality. The Board expressed its confidence in management's long-term strategy for the Company by reinstating a dividend in the first quarter of 2013. We continue to believe our strategic plan will allow us to become a top-quartile performing financial services company in the coming years."
RESULTS OF OPERATIONS
Consolidated Revenue
Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was down 18.7 percent from the fourth quarter of 2012 and 1.9 percent for the full year.
-- Net interest income (FTE) was down 2.9 percent for the fourth quarter
and up 0.1 percent for the full year
-- Net interest margin (FTE) was down 15 basis points for the fourth
quarter and flat for the full year
-- Noninterest income was down $1.7 million, or 36.6 percent, for the
fourth quarter, and $0.8 million, or 5.4 percent, for the full year
Mr. Klein commented, "Two significant external factors affected revenue in 2013. The first was the decline in yields on the loan portfolio, reflecting the general interest rate environment, which was partially offset by lower funding costs. Secondly, mortgage originations declined across the country as the year progressed, largely due to the increase in prevailing interest rates and the shift away from a 'refinance' mindset. In the fourth quarter, SB Financial had a 28.1 percent decline in mortgage originations from the linked quarter. Despite the shift in the refinance market, we continue to be successful in acquiring market share from competitors that are stepping away from mortgage origination."
Mortgage Loan Business
Mortgage loan originations declined $53.9 million, or 57.6 percent, for the fourth quarter, and declined $83.8 million, or 25.2 percent, for the year.
Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $6.3 million for 2013, compared to $6.4 million for 2012. The mortgage servicing valuation adjustment for 2013 was ($0.02) million, compared to $0.2 million for the linked quarter. The mortgage servicing portfolio at year-end 2013 was $606.0 million, up $77.9 million, or 14.8 percent, from year-end 2012.
Mortgage Banking ($000's) Three Months Ended
------------------
Dec. Sep. Jun. Mar. Dec.
2013 2013 2013 2013 2012
---- ---- ---- ---- ----
Mortgage originations $39,679 $55,192 $81,945 $71,967 $93,619
Mortgage sales 33,921 58,101 67,050 68,431 93,993
Mortgage servicing portfolio 605,993 597,030 575,091 548,493 528,086
Mortgage servicing rights 5,180 5,076 4,613 4,068 3,775
Mortgage servicing revenue:
---------------------------
Loan servicing fees 388 367 350 338 319
OMSR amortization (126) (164) (205) (330) (362)
---- ---- ---- ---- ----
Net administrative fees 262 203 145 8 (43)
OMSR valuation adjustment (21) 205 273 171 195
--- --- --- --- ---
Net loan servicing fees 241 408 418 179 152
Gain on sale of mortgages 776 1,356 1,450 1,484 2,136
--- ----- ----- ----- -----
Mortgage banking revenue, net $1,017 $1,764 $1,868 $1,663 $2,288
====== ====== ====== ====== ======
Fee Income
SB Financial's fee income includes revenue from a diversity of services, such as wealth management, deposit fees and income from bank-owned life insurance. Wealth management increased by 13.7 percent for the fourth quarter as assets under management, which stood at $345.5 million at year-end 2013, grew by $30.3 million, or 9.6 percent, from year-end 2012. Full-year wealth management revenue rose by $0.15 million, or 6.1 percent.
Gross revenue generated by RDSI, including services provided to SB Financial and State Bank, was $2.3 million for 2013. Net data services fees, excluding SB Financial and State Bank intercompany transactions, were $1.5 million in 2013, down $1.0 million from 2012.
Data Services ($000's) Dec. 2013 Sep. 2013 Jun. 2013 Mar. 2013 Dec. 2012
---
Data Processing & Network Services $ - $104 $207 $270 $179
Payment Solutions 376 403 493 484 549
Vendor Settlement - - - - 334
RDSI Gross Revenue 376 507 700 754 1,062
Less: Intercompany (81) (174) (242) (340) (251)
Net Data Services Fees $295 $333 $458 $414 $811
Core Data Service Fees $295 $333 $458 $414 $477
Loan Loss Provision
The loan loss provision was immaterial in the fourth quarter of 2013 and $0.9 million for the full year. Asset quality metrics included a 19.0 percent decline in non-accruing and restructured loans, and a 30.1 percent reduction in full-year net charge-offs compared with 2012. The loan loss reserve at year-end 2013 was 1.5 percent of total loans, providing 105.8 percent coverage of nonperforming loans; this compares to reserve coverage of 103.8 percent at year-end 2012.
Noninterest Expense
For the fourth quarter of 2013, noninterest expense was down $1.0 million, or 14.1 percent, compared to the fourth quarter of 2012 and was down 3.5 percent for the full year. FDIC insurance premiums were down 34.9 percent, a reflection of State Bank's improved risk profile.
"We made a number of strategic decisions during the past year to reduce our expense levels. We closed a branch, made changes to our benefit programs and implemented several efficiency measures. We expect these changes should continue to improve our profitability going forward," stated Mr. Klein.
Balance Sheet
Total assets as of December 31, 2013, were $631.8 million, down 1.0 percent from year-end 2012. Total deposits as of December 31, 2013, were $518.2 million, down 1.7 percent from year-end 2012.
Total loans held for investment (HFI) were $477.3 million at December 31, 2013, up 3.0 percent from year-end 2012. Residential real estate loans accounted for the majority of growth, up $11.8 million, or 13.4 percent. Commercial and commercial real estate loans rose $7.8 million, or 2.8 percent, for the full year.
Mr. Klein stated, "We are pleased with our loan growth over the past year, and we are encouraged by the additional opportunities we are seeing across our markets. We believe that as a regionally focused bank we are well positioned to capture successfully these new business opportunities. In particular, our commercial loan growth rose in the latter part of the year, as we continued to focus on targeted marketing efforts. Approximately $3.8 million of the full-year growth in commercial loans came in the fourth quarter."
Loan Portfolio ($000's) Dec. 2013 Sep. 2013 Jun. 2013 Mar. 2013 Dec. 2012 Variance
YOY
---
Commercial $85,368 $81,571 $84,766 $80,431 $81,491 $3,877
% of Total 17.9% 17.2% 18.3% 17.7% 17.6% 4.8%
Commercial RE 205,301 209,739 199,795 199,615 201,392 3,909
% of Total 43.0% 44.1% 43.1% 43.8% 43.5% 1.9%
Agriculture 39,210 39,636 38,552 37,950 42,276 (3,066)
------ ------ ------ ------ ------
% of Total 8.2% 8.3% 8.3% 8.3% 9.1% (7.3%)
Residential RE 99,620 96,477 93,292 89,669 87,859 11,761
====== ====== ====== ====== ======
% of Total 20.9% 20.3% 20.1% 19.7% 19.0% 13.4%
Consumer & Other 47,804 47,810 47,630 47,778 50,371 (2,567)
====== ====== ====== ====== ======
% of Total 10.0% 10.1% 10.3% 10.5% 10.9% (5.1%)
Total Loans $477,303 $475,233 $464,035 $455,443 $463,389 $13,914
======== ======== ======== ======== ========
Total Growth Percentage 3.0%
Asset Quality
SB Financial continues to improve its asset quality, reporting nonperforming assets of $7.2 million at year-end 2013, declining by $1.7 million, or 19.0 percent, from year-end 2012. Delinquency levels have declined, with the 30-89 day category totaling $0.9 million at the end of the 2013, compared to $2.6 million at year-end 2012.
Summary of Nonperforming Assets ($000's)
Nonperforming Loan Category Dec. 2013 Sep. 2013 Jun. 2013 Mar. 2013 Dec. 2012
--------------------------- --------- --------- --------- --------- ---------
Commercial $2,316 $2,738 $982 $1,135 $1,246
% of Total Commercial loans 2.7% 3.4% 1.2% 1.4% 1.5%
Commercial RE loans 532 642 519 457 782
% of Total CRE loans 0.3% 0.3% 0.3% 0.2% 0.4%
Agriculture - - - - -
% of Total Ag loans - - - - -
Residential RE 1,651 1,837 2,285 2,614 2,631
% of Total Res. RE loans 1.7% 1.9% 2.5% 2.9% 3.0%
Consumer & Other 345 363 600 605 646
% of Consumer & Other loans 0.7% 0.8% 1.3% 1.3% 1.3%
Total Nonaccruing Loans 4,844 5,580 4,386 4,811 5,305
% of Total Loans 1.0% 1.2% 1.0% 1.0% 1.1%
Accruing Restructured Loans 1,739 1,756 1,262 1,273 1,258
Total Nonaccruing & $6,583 $7,336 $5,648 $6,084 $6,563
Restructured
% of Total Loans 1.4% 1.5% 1.2% 1.3% 1.4%
OREO & Repossessed Vehicles 651 1,430 1,955 2,270 2,367
--- ----- ----- ----- -----
Total Nonperforming Assets $7,233 $8,766 $7,603 $8,354 $8,930
====== ====== ====== ====== ======
% of Total Assets 1.1% 1.4% 1.2% 1.3% 1.4%
Capitalization
Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 63 basis points over the past year and stood at 6.3 percent as of December 31, 2013. All bank regulatory ratios remain in excess of "well-capitalized" levels. At December 31, 2013, State Bank's Total Risk-Based Capital was estimated to be $60.8 million, $22.0 million above the "well-capitalized" level. The Total Risk-Based Capital Ratio is estimated at 12.6 percent.
About SB Financial Group
Based in Defiance, Ohio, SB Financial Group, Inc. is a financial services holding company with two wholly-owned operating subsidiaries: State Bank and RDSI Banking Systems (RDSI). State Bank operates through 17 banking centers in seven Northwestern Ohio counties, and one banking center in Fort Wayne, Indiana; and three loan production offices: two in Columbus, Ohio and one in Angola, Indiana. State Bank offers a full range of financial services for consumers and small businesses, including wealth management, mortgage banking, commercial and agricultural lending. RDSI provides item processing services to community banks located in the Midwest. The Company's common stock is listed on the NASDAQ Global Market under the symbol SBFG.
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, insurance and mortgage industries, competitive factors specific to markets in which SB Financial Group and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors. Additional factors that could cause results to differ from those described above can be found in the Company's Annual Report on Form 10-K and documents subsequently filed by SB Financial Group with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial Group 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 Group 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 providing certain non-GAAP financial measures provides investors with information useful in understanding the Company's financial performance, its performance trends and financial position. Specifically, SB Financial Group provides measures based on "core operating earnings," which excludes merger, integration and restructuring expenses that are not reflective of on-going operations or not expected to recur. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.
SB FINANCIAL GROUP, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - (Unaudited)
December September June March December
($ in Thousands) 2013 2013 2013 2013 2012
---- ---- ---- ---- ----
ASSETS
Cash and due from banks $13,137 $19,016 $10,750 $28,031 $19,144
Securities available for sale, at fair
value 89,793 86,620 95,379 98,390 98,702
Other securities - FRB and FHLB Stock 3,748 3,748 3,748 3,748 3,748
Total investment securities 93,541 90,368 99,127 102,138 102,450
Loans held for sale 3,366 2,407 10,715 8,560 6,147
Loans, net of unearned income 477,303 475,233 464,035 455,443 463,389
Allowance for loan losses (6,964) (7,120) (7,013) (6,992) (6,811)
Net loans 470,339 468,113 457,022 448,451 456,578
Premises and equipment, net 12,213 12,399 12,483 12,738 12,633
Purchased software 394 320 289 300 330
Cash surrender value of life insurance 12,906 12,826 12,742 12,659 12,577
Goodwill 16,353 16,353 16,353 16,353 16,353
Core deposits and other intangibles 655 784 913 1,066 1,219
Foreclosed assets held for sale, net 651 1,430 1,955 2,270 2,367
Mortgage servicing rights 5,180 5,076 4,613 4,068 3,775
Accrued interest receivable 1,281 1,694 1,575 1,618 1,235
Other assets 1,738 2,626 2,955 3,048 3,426
Total assets $631,754 $633,412 $631,492 $641,300 $638,234
======== ======== ======== ======== ========
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand $81,570 $78,217 $76,355 $79,579 $77,799
Interest bearing demand 119,551 124,860 118,957 123,748 117,289
Savings 61,652 61,899 61,513 62,404 57,461
Money market 79,902 78,406 78,487 81,130 80,381
Time deposits 175,559 178,161 176,066 185,398 194,071
------- ------- ------- ------- -------
Total deposits 518,234 521,543 511,378 532,259 527,001
Notes payable 589 680 1,148 1,424 1,702
Advances from Federal Home Loan Bank 16,000 16,000 30,000 17,500 21,000
Repurchase agreements 14,696 14,836 9,314 10,983 10,333
Trust preferred securities 20,620 20,620 20,620 20,620 20,620
Accrued interest payable 639 448 715 515 138
Other liabilities 4,707 3,748 3,930 3,704 4,156
Total liabilities 575,485 577,875 577,105 587,005 584,950
Equity
Preferred stock - - - - -
Common stock 12,569 12,569 12,569 12,569 12,569
Additional paid-in capital 15,412 15,399 15,392 15,381 15,374
Retained earnings 29,899 28,846 27,648 26,476 25,280
Accumulated other comprehensive
income 74 415 496 1,623 1,830
Treasury stock (1,685) (1,692) (1,718) (1,754) (1,769)
------ ------ ------ ------ ------
Total equity 56,269 55,537 54,387 54,295 53,284
------ ------ ------ ------ ------
Total liabilities and equity $631,754 $633,412 $631,492 $641,300 $638,234
======== ======== ======== ======== ========
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except share data) Three Months Ended Twelve Months Ended
------------------ -------------------
December September June March December December December
Interest income 2013 2013 2013 2013 2012 2013 2012
---- ---- ---- ---- ---- ---- ----
Loans
Taxable $5,428 5,649 5,874 $5,883 $5,840 $22,834 $23,911
Nontaxable 13 14 16 24 22 67 90
Securities
Taxable 313 305 296 330 330 1,244 1,515
Nontaxable 181 178 174 170 157 703 606
Total interest income 5,935 6,146 6,360 6,407 6,349 24,848 26,122
Interest expense
Deposits 513 539 573 606 653 2,231 2,969
Other borrowings 10 11 12 14 15 47 64
Repurchase Agreements 4 2 3 2 3 11 142
Federal Home Loan Bank advances 82 83 84 90 92 339 333
Trust preferred securities 330 336 338 403 431 1,407 1,882
Total interest expense 939 971 1,010 1,115 1,194 4,035 5,390
Net interest income 4,996 5,175 5,350 5,292 5,155 20,813 20,732
Provision for loan losses - 401 200 299 400 900 1,350
Net interest income after provision
for loan losses 4,996 4,774 5,150 4,993 4,755 19,913 19,382
Noninterest income
Wealth Management Fees 689 669 652 643 606 2,653 2,501
Customer service fees 673 659 639 616 648 2,587 2,624
Gain on sale of mtg. loans &
OMSR's 776 1,356 1,450 1,484 2,136 5,066 6,284
Mortgage loan servicing fees, net 241 408 418 179 152 1,246 124
Gain on sale of non-mortgage
loans 303 44 82 156 94 585 264
Data service fees 295 333 458 414 811 1,500 2,515
Net gain on sales of securities - 28 - 20 - 48 -
Gain/(loss) on sale/disposal of
assets (265) 15 (129) (105) (54) (484) (311)
Other income 237 198 250 160 255 845 844
Total non-interest income 2,949 3,710 3,820 3,567 4,648 14,046 14,845
Noninterest expense
Salaries and employee benefits 3,027 3,343 3,688 3,439 3,825 13,497 14,518
Net occupancy expense 494 507 513 541 494 2,055 2,085
Equipment expense 651 701 703 755 692 2,810 2,837
FDIC insurance expense 108 98 94 109 100 409 628
Fixed asset and software
impairment - - - - 65 - 65
Data processing fees 254 189 194 77 132 714 469
Professional fees 443 456 499 429 686 1,827 1,912
Marketing expense 136 135 92 108 115 471 393
Printing and office supplies 55 49 151 46 46 301 230
Telephone and communication 110 156 158 158 146 582 580
Postage and delivery expense 173 199 209 215 204 796 856
State, local and other taxes 138 140 138 134 136 550 502
Employee expense 154 125 126 152 113 557 456
Intangible amortization expense 129 129 153 153 158 564 630
OREO Impairment - - - 33 - 33 58
Other expenses 327 335 362 321 300 1,345 1,265
Total non-interest expense 6,199 6,562 7,080 6,670 7,212 26,511 27,484
Income before income tax expense 1,746 1,922 1,890 1,890 2,191 7,448 6,743
Income tax expense 522 578 571 572 667 2,243 1,929
Net income $1,224 1,344 1,319 $1,318 $1,524 $5,205 $4,814
Common share data:
Basic earnings per common share $0.25 0.28 0.27 $0.27 $0.31 $1.07 $0.99
Diluted earnings per common share $0.25 0.28 0.27 $0.27 $0.31 $1.07 $0.99
Average shares outstanding ($ in thousands):
Basic: 4,870 4,867 4,866 4,863 4,862 4,866 4,862
Diluted: 4,882 4,881 4,870 4,870 4,862 4,878 4,862
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share data) Three Months Ended Twelve Months Ended
------------------ -------------------
December September June March December December December
SUMMARY OF OPERATIONS 2013 2013 2013 2013 2012 2013 2012
--------------------- ---- ---- ---- ---- ---- ---- ----
Net interest income $4,996 5,175 5,350 5,292 5,155 20,813 20,732
Tax-equivalent adjustment $100 99 98 100 92 397 359
Tax-equivalent net interest income $5,096 5,274 5,448 5,392 5,247 21,210 21,091
Provision for loan loss $ - 401 200 299 400 900 1,350
Noninterest income $2,949 3,710 3,820 3,567 4,648 14,046 14,845
Total revenue, tax-equivalent $8,045 8,984 9,268 8,959 9,895 35,256 35,936
Noninterest expense $6,199 6,562 7,080 6,670 7,212 26,511 27,484
Pre provision pretax income $1,746 2,323 2,090 2,189 2,591 8,348 8,093
Pretax income $1,746 1,922 1,890 1,890 2,191 7,448 6,743
Net income $1,224 1,344 1,319 1,318 1,524 5,205 4,814
PER SHARE INFORMATION:
Basic & diluted earnings per share $0.25 0.28 0.27 0.27 0.31 1.07 0.99
Common dividends $0.035 0.03 0.055 - - 0.12 -
Book value per common share $11.55 11.42 11.17 11.16 10.96 11.55 10.96
Tangible book value per common share $7.98 7.83 7.57 7.52 7.28 7.98 7.28
PERFORMANCE RATIOS:
Return on average assets 0.76% 0.84% 0.82% 0.83% 0.95% 0.81% 0.75%
Return on average common equity 8.75% 9.82% 9.70% 9.82% 11.64% 9.52% 9.57%
Return on avg. tangible common equity 12.71% 14.43% 14.35% 14.68% 17.73% 14.03% 15.00%
Efficiency ratio 76.40% 72.40% 75.54% 73.56% 71.96% 74.43% 75.48%
Earning asset yield 4.31% 4.40% 4.58% 4.65% 4.50% 4.43% 4.72%
Cost of interest bearing liabilities 0.76% 0.79% 0.81% 0.90% 0.96% 0.81% 1.07%
Net interest margin 3.50% 3.65% 3.79% 3.78% 3.65% 3.68% 3.70%
Tax equivalent effect 0.07% 0.07% 0.07% 0.08% 0.07% 0.07% 0.06%
Net interest margin - fully tax equivalent basis 3.57% 3.72% 3.86% 3.86% 3.72% 3.75% 3.76%
ASSET QUALITY RATIOS:
Gross charge-offs $163 307 213 136 300 819 1,328
Recoveries $7 13 34 18 15 72 260
Net charge-offs $156 294 179 118 285 747 1,068
Nonaccruing loans/ Total loans 1.01% 2.21% 0.95% 1.06% 1.14% 1.01% 1.14%
Nonperforming loans/ Total loans 1.38% 2.58% 1.22% 1.34% 1.42% 1.38% 1.42%
Nonperforming assets/ Loans & OREO 1.51% 2.87% 1.63% 1.83% 1.92% 1.51% 1.92%
Nonperforming assets/ Total assets 1.14% 2.16% 1.20% 1.30% 1.40% 1.14% 1.40%
Allowance for loan loss/ Nonperforming loans 105.8% 58.2% 124.2% 114.9% 103.8% 105.80% 103.8%
Allowance for loan loss/ Total loans 1.46% 1.50% 1.51% 1.54% 1.47% 1.46% 1.47%
Net loan charge-offs/ Average loans (ann.) 0.13% 0.25% 0.15% 0.10% 0.25% 0.16% 0.23%
Loan loss provision/ Net charge-offs 0.00% 136.39% 111.73% 253.39% 140.56% 120.48% 126.40%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits 92.10% 91.12% 90.74% 85.57% 87.93% 92.10% 87.93%
Equity/ Assets 8.91% 8.77% 8.61% 8.47% 8.35% 8.91% 8.35%
Tangible equity/ Tangible assets 6.33% 6.18% 6.00% 5.87% 5.70% 6.33% 5.70%
END OF PERIOD BALANCES
Total loans $477,303 475,233 464,035 455,443 463,389 477,303 463,389
Total assets $631,754 633,412 631,492 641,300 638,234 631,754 638,234
Deposits $518,234 521,543 511,378 532,259 527,001 518,234 527,001
Stockholders equity $56,269 55,537 54,387 54,295 53,284 56,269 53,284
Intangibles $17,402 17,457 17,555 17,719 17,902 17,402 17,902
Tangible equity $38,867 38,080 36,832 36,576 35,382 38,867 35,382
Full-time equivalent employees 200 196 198 204 204 200 204
Period end basic shares outstanding 4,870 4,864 4,867 4,863 4,862 4,870 4,862
AVERAGE BALANCES
Total loans $479,701 474,349 464,105 459,988 455,705 469,603 455,516
Total earning assets $571,332 567,787 564,050 559,383 564,564 565,390 560,858
Total assets $645,148 636,437 640,382 638,801 639,048 639,920 638,035
Deposits $525,334 516,669 520,259 524,901 522,970 521,648 522,412
Stockholders equity $55,925 54,758 54,398 53,711 52,351 54,700 50,300
Intangibles $17,404 17,504 17,633 17,810 17,968 17,590 18,217
Tangible equity $38,521 37,254 36,765 35,901 34,383 37,110 32,083
SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three and Twelve Months Ended December 31, 2013 and 2012
----------------------------------------------------------------
($ in Thousands) Three Months Ended December 31, 2013 Three Months Ended December 31, 2012
Average Average Average Average
Assets Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
Taxable securities $73,306 313 1.71% $84,945 330 1.56%
Non-taxable securities 18,325 274 5.99% 15,985 238 5.96%
Federal funds sold - - N/A - - N/A
Loans, net 479,701 5,448 4.54% 463,635 5,873 5.07%
----- ----- ----- -----
Total earning assets 571,332 6,035 4.23% 564,565 6,441 4.56%
Cash and due from banks 22,369 18,185
Allowance for loan losses (7,075) (6,842)
Premises and equipment 13,811 15,344
Other assets 44,711 47,595
Total assets $645,148 $638,847
Liabilities
Savings and interest-bearing demand $265,258 18 0.03% $247,866 44 0.07%
Time deposits 176,609 495 1.12% 198,657 608 1.23%
Repurchase agreements 15,131 4 0.11% 11,711 3 0.10%
Advances from FHLB 16,000 82 2.05% 18,245 92 2.03%
Junior subordinated debentures 20,620 330 6.40% 20,620 419 8.13%
Notes payable & other borrowed funds 634 10 6.31% 1,791 27 6.03%
--- --- --- ---
Total interest-bearing liabilities 494,252 939 0.76% 498,890 1,194 0.96%
Non interest-bearing demand 83,467 76,447
Other liabilities 11,504 11,159
Total liabilities 589,223 586,496
Equity 55,925 52,351
Total liabilities and equity $645,148 $638,847
Net interest income (tax equivalent basis) $5,096 $5,247
Net interest income as a percent of average interest-
earning assets 3.57% 3.72%
Twelve Months Ended December 31, 2013 Twelve Months Ended December 31, 2012
------------------------------------- -------------------------------------
Average Average Average Average
Assets Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
Taxable securities $78,520 1,244 1.58% $90,182 1,515 1.68%
Non-taxable securities 17,267 1,065 6.17% 15,160 919 6.06%
Federal funds sold - - N/A - - N/A
Loans, net 469,603 22,936 4.88% 455,516 24,047 5.28%
------ ----- ------ -----
Total earning assets 565,390 25,245 4.47% 560,858 26,481 4.72%
Cash and due from banks 20,827 20,728
Allowance for loan losses (6,962) (6,591)
Premises and equipment 14,635 15,360
Other assets 46,030 47,680
Total assets $639,920 $638,035
Liabilities
Savings and interest-bearing demand $262,954 75 0.03% $245,528 210 0.09%
Time deposits 180,154 2,156 1.20% 206,135 2,759 1.34%
Repurchase agreements 12,011 11 0.09% 15,180 142 0.94%
Advances from FHLB 18,551 339 1.83% 15,547 333 2.14%
Junior subordinated debentures 20,620 1,407 6.82% 20,620 1,815 8.80%
Notes payable & other borrowed funds 1,074 47 4.38% 2,058 131 6.36%
--- --- --- ---
Total interest-bearing liabilities 495,364 4,035 0.81% 505,067 5,390 1.07%
Non interest-bearing demand 78,540 70,749
Other liabilities 11,316 11,919
Total liabilities 585,220 587,735
Equity 54,700 50,300
Total liabilities and equity $639,920 $638,035
Net interest income (tax equivalent basis) $21,210 $21,091
Net interest income as a percent of average interest-
earning assets 3.75% 3.76%
SOURCE SB Financial Group, Inc.
