DEFIANCE, Ohio, Jan. 21, 2015 /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 item processing services, today reported earnings for the fourth quarter and full year ended December 31, 2014.
Fourth-quarter highlights include:
-- Net income of $1.5 million for the fourth quarter represented a 25.0
percent increase over the prior year fourth quarter
-- Loan growth up $39.0 million, or 8.2 percent, from the prior year
-- Fully tax equivalent (FTE) revenue up 8.9 percent from the prior year
-- Net interest margin (FTE) of 3.73 percent for the quarter was up 16
basis points from the prior year
-- Asset quality remained strong for the quarter, with the nonperforming
asset ratio at 0.92 percent at December 31, 2014
-- Operating expenses were up slightly compared with the year-ago fourth
quarter, but down 7.6 percent from the linked quarter
Full-year 2014 highlights include:
-- Net income of $5.3 million, or $1.07 per diluted share, compared to $5.2
million, or $1.07 per diluted share, for the prior year
-- Total revenue (FTE) of $34.1 million, which was down 2.9 percent from
the prior year
-- Total operating expense of $26.0 million, which was down 2.1 percent
from the prior year
Highlights* Three Months
Ended Full Year
------------ ---------
(in $000's
except ratios
and per share
data) Dec. 2014 Dec. 2013 2014 2013
--------- --------- ---- ----
Net interest
income (FTE) $5,599 $5,096 $21,316 $21,110
Noninterest
income 3,164 2,949 12,827 14,046
Noninterest
expense 6,364 6,199 25,957 26,511
Net income 1,524 1,224 5,263 5,205
Earnings per
diluted share 0.30 0.25 1.07 1.07
Net interest
margin (FTE) 3.73% 3.57% 3.62% 3.75%
Return on
assets 0.89% 0.76% 0.78% 0.81%
Return on
equity 9.40% 8.75% 8.74% 9.52%
---------
*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) (RDSI).
"We are pleased with our solid fourth-quarter results," said Mark Klein, President and Chief Executive Officer of SB Financial. "We continue to drive performance improvement in our Company as we implement our strategic initiatives to diversify our revenue streams, achieve operational excellence and expand our market presence. During the quarter, we had robust mortgage production, solid balance sheet growth, expense control and stable asset quality. Additionally, we successfully completed our preferred stock offering and announced our re-entry into the Findlay, Ohio market."
RESULTS OF OPERATIONS
Consolidated Revenue
Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was up 8.9 percent from the fourth quarter of 2013, but down 5.3 percent from the linked quarter.
-- Net interest income (FTE) was up 9.9 percent for the fourth quarter, and
up 2.8 percent compared to the linked quarter. For the full year, net
interest income (FTE) was up 1.0 percent.
-- Net interest margin (FTE) was up 16 basis points for the fourth quarter,
and up 9 basis points from the linked quarter. Margin for the full year
was down 13 basis points.
-- Net interest margin was impacted by the payoff of our fixed rate trust
preferred securities late in the third quarter. For the fourth quarter,
this early payoff increased margin by 15 basis points.
-- Noninterest income was up 7.3 percent for the fourth quarter, but down
16.9 percent from the linked quarter. For the full year, noninterest
income was down 8.7 percent.
Total revenue, consisting of net interest income on an FTE basis and noninterest income, for the twelve months of 2014 was $34.1 million, compared to $35.2 million for the twelve months of 2013 or a 2.9 percent decline. The twelve-month results were impacted by lower mortgage origination volume during the first half of 2014 and the reduction in the yield on earning assets.
Mortgage Loan Business
Mortgage loan originations for the fourth quarter of 2014 were $52.1 million, up $12.4 million, or 31.2 percent, from the year-ago fourth quarter. For the twelve months of 2014, mortgage loan originations were $219.7 million, down from $248.8 million for the twelve months of 2013 or an 11.7 percent decline.
Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.0 million for the fourth quarter of 2014, compared to $1.0 million for the year-ago quarter. The mortgage servicing valuation adjustment for the fourth-quarter 2014 was a negative $0.19 million, down $0.25 million from the linked quarter. The mortgage servicing portfolio at December 31, 2014, was $665.7 million, up $59.7 million from $606.0 million, or 9.9 percent, from December 31, 2013.
Mr. Klein noted, "Our mortgage volumes for the quarter were strong compared to the prior year. While 2014 volumes were lower than in previous years, we were pleased that 93 percent of this year's activity was from new SB Financial clients."
Mortgage Banking ($000's)
Dec. 2014 Sep. 2014 Jun. 2014 Mar. 2014 Dec. 2013
--------- --------- --------- --------- ---------
Mortgage originations $52,058 $67,502 $66,563 $33,602 $39,679
Mortgage sales 43,542 60,982 49,091 27,961 33,921
Mortgage servicing
portfolio 665,710 649,669 627,215 609,419 605,993
Mortgage servicing rights 5,704 5,720 5,375 5,228 5,180
Mortgage servicing revenue:
---------------------------
Loan servicing fees 410 400 387 380 388
OMSR amortization (174) (175) (147) (117) (126)
---- ---- ---- ---- ----
Net administrative fees 236 225 240 263 262
OMSR valuation adjustment (193) 62 (83) (18) (21)
---- --- --- --- ---
Net loan servicing fees 43 287 156 245 241
Gain on sale of mortgages 1,003 1,442 1,211 572 776
----- ----- ----- --- ---
Mortgage banking revenue,
net 1,046 $1,729 $1,368 $817 $1,017
===== ====== ====== ==== ======
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 income from bank-owned life insurance. Wealth management assets under management stood at $330.8 million as of December 31, 2014. For the fourth quarter of 2014, fee income as a percentage of total revenue was 36.5 percent, down slightly from the prior year. For the twelve months of 2014, fee income as a percentage of total revenue was 38.0 percent.
For the fourth quarter of 2014, noninterest expense (NIE) was up $0.2 million, or 2.7 percent, compared to the fourth quarter of 2013. For the twelve months of 2014, operating expenses were down $0.6 million, or 2.1 percent, compared to the twelve months of 2013. When adjusted for the trust preferred securities prepayment, expenses for the twelve months of 2014 were down $1.0 million, or 3.7 percent, compared to the prior-year period.
"In the current interest-rate environment, our fee income continues to be a competitive strength," Mr. Klein stated. "For the fourth quarter, our fee income included the sale of several SBA credits, which delivered $143,000 in gains. We have been actively pursuing SBA loans all year and our pipeline is strengthening."
Fee Income / Noninterest Expense
(000's)
------
Dec. 2014 Sep. 2014 Jun. 2014 Mar. 2014 Dec. 2013
--------- --------- --------- --------- ---------
Fee Income $3,164 $3,809 $3,295 $2,559 $2,949
Fee Income /
Total Revenue 36.5% 41.6% 38.6% 34.7% 37.1%
Fee Income /
Average
Assets 1.8% 2.3% 2.0% 1.6% 1.8%
Noninterest
Expense $6,364 $6,888 $6,627 $6,079 $6,199
Efficiency
Ratio 72.8% 74.6% 76.0% 80.6% 76.4%
NIE /Average
Assets 3.7% 4.1% 4.0% 3.8% 3.8%
Balance Sheet
Total assets as of December 31, 2014, were $684.2 million, up 8.3 percent from a year ago. Total equity as of December 31, 2014, was $75.7 million, up 34.5 percent from a year ago. Equity balances included the net impact of our capital raise completed in the fourth quarter, which added $14.0 million to total equity through the public offering of depository shares representing 1/100(th) interest in our 6.50 percent Noncumulative Convertible Preferred Shares, Series A.
Total loans held for investment were $516.3 million at December 31, 2014, up $39.0 million, or 8.2 percent, from December 31, 2013. Residential real estate loans accounted for the majority of growth, up $18.8 million, or 18.8 percent. Commercial real estate and agricultural loans rose $11.7 million, or 5.7 percent, and $7.0 million, or 17.9 percent, respectively.
The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $89.0 million represented 13.0 percent of assets at December 31, 2014, and was down slightly from a year ago. Deposit balances of $550.9 million at December 31, 2014, increased by $32.7 million, or 6.3 percent since December 31, 2013. Growth from the prior year included $17.8 million in checking and $14.9 million in savings and time deposit balances.
Mr. Klein said, "We continued to see solid growth in our loan portfolio during the fourth quarter, primarily as a result of higher residential and commercial real estate loan activity. Our equity balances improved substantially this quarter after the completion of a very successful preferred stock offering."
Dec. 2014 Sep. 2014 Jun. 2014 Mar. 2014 Dec. 2013 Variance
YOY
Loan Portfolio
($000's)
Commercial $83,190 $90,407 $92,424 $85,701 $85,368 $(2,178)
% of Total 16.1% 17.9% 18.3% 17.8% 17.9% 2.6%
Commercial RE 217,030 212,964 215,824 212,502 205,301 11,729
% of Total 42.0% 42.1% 42.6% 44.1% 43.0% 5.7%
Agriculture 46,217 44,162 43,475 39,028 39,210 7,007
------ ------ ------ ------ ------
% of Total 9.0% 8.7% 8.6% 8.1% 8.2% 17.9%
Residential RE 118,382 107,712 105,054 97,857 99,620 18,762
======= ======= ======= ====== ======
% of Total 22.9% 21.3% 20.8% 20.3% 20.9% 18.8%
Consumer & Other 51,517 50,679 49,350 46,836 47,804 3,713
====== ====== ====== ====== ======
% of Total 10.0% 10.0% 9.7% 9.7% 10.0% 7.8%
Total Loans $516,336 $505,924 $506,127 $481,924 $477,303 $39,033
======== ======== ======== ======== ========
Total Growth
Percentage 8.2%
Asset Quality
SB Financial continues to improve its asset quality, reporting nonperforming assets of $6.3 million as of December 31, 2014, down $1.0 million, or 13.2 percent, from the year-ago quarter. Already trending better than our key peer metrics, the 0.92 percent of nonperforming assets to total assets continues a trend of sub 1.0 percent for the last three quarters. Coverage of problem loans by the loan loss allowance was 113.0 percent at December 31, 2014, up from the 105.8 percent at December 31, 2013.
Summary of Nonperforming Assets ($000's)
Nonperforming Loan
Category Dec. 2014 Sep. 2014 Jun. 2014 Mar. 2014 Dec. 2013
------------------ --------- --------- --------- --------- ---------
Commercial $1,387 $1,397 $1,485 $1,818 $2,316
% of Total Commercial
loans 1.7% 1.5% 1.6% 2.1% 2.7%
Commercial RE 2,092 616 699 753 532
% of Total CRE loans 1.0% 0.3% 0.3% 0.4% 0.3%
Residential RE 992 1,015 1,534 1,555 1,651
% of Total Res. RE loans 0.8% 0.9% 1.5% 1.6% 1.7%
Consumer & Other 138 174 288 280 345
% of Total Cons. & Other
loans 0.3% 0.3% 0.6% 0.6% 0.7%
Total Nonaccruing Loans 4,609 3,202 4,006 4,406 4,844
% of Total Loans 0.9% 0.6% 0.8% 0.9% 1.0%
Accruing Restructured
Loans 1,384 1,620 1,665 1,793 1,739
Total Nonaccruing &
Restructured Loans $5,993 $4,822 $5,671 $6,199 $6,583
====== ====== ====== ====== ======
% of Total Loans 1.2% 1.0% 1.1% 1.3% 1.4%
OREO & Repossessed
Vehicles 285 540 516 615 651
--- --- --- --- ---
Total Nonperforming Assets $6,278 $5,362 $6,187 $6,814 $7,233
====== ====== ====== ====== ======
% of Total Assets 0.9% 0.8% 0.9% 1.1% 1.1%
Capitalization
Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 36 basis points over the past year and stood at 6.8 percent as of December 31, 2014. All bank regulatory ratios remain in excess of "well-capitalized" levels. At December 31, 2014, State Bank's Total Risk-Based Capital was estimated to be $63.5 million, $21.2 million above the "well-capitalized" level. The Total Risk-Based Capital Ratio is estimated at 12.5 percent.
The Company will hold a related conference call and webcast on January 22, at 10:00 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 with two wholly-owned operating subsidiaries: State Bank and RDSI. 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 16 banking centers in seven northwestern Ohio counties and one center in Fort Wayne, Indiana, as well as two loan production offices located in Columbus, Ohio, and one loan production office located in Angola, Indiana. RDSI 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.
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 providing certain non-GAAP financial measures provides 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
2014 2014 2014 2014 2013
($ in Thousands)
ASSETS
Cash and due from banks $28,197 $21,870 $13,778 $14,860 $13,137
Securities available for sale, at fair
value 85,240 81,148 85,586 93,305 89,793
Other securities - FRB and FHLB Stock 3,748 3,748 3,748 3,748 3,748
Total investment securities 88,988 84,896 89,334 97,053 93,541
Loans held for sale 5,168 6,736 8,290 7,165 3,366
Loans, net of unearned income 516,336 505,924 506,127 481,924 477,303
Allowance for loan losses (6,771) (6,713) (6,568) (6,726) (6,964)
Net loans 509,565 499,211 499,559 475,198 470,339
Premises and equipment, net 13,604 13,256 13,281 13,414 12,607
Cash surrender value of life insurance 13,148 13,074 13,059 12,982 12,906
Goodwill 16,353 16,353 16,353 16,353 16,353
Core deposits and other intangibles 283 338 393 524 655
Foreclosed assets held for sale, net 285 540 516 615 651
Mortgage servicing rights 5,704 5,720 5,375 5,228 5,180
Accrued interest receivable 1,346 1,853 1,456 1,423 1,281
Other assets 1,587 709 1,106 1,487 1,738
Total assets $684,228 $664,556 $662,500 $646,302 $631,754
======== ======== ======== ======== ========
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand $97,853 $90,261 $87,706 $84,265 $81,570
Interest bearing demand 121,043 119,805 116,765 126,520 119,551
Savings 64,107 61,770 63,199 64,306 61,652
Money market 104,602 96,506 80,288 85,731 79,902
Time deposits 163,301 166,919 176,109 171,897 175,559
------- ------- ------- ------- -------
Total deposits 550,906 535,261 524,067 532,719 518,234
Notes payable - 7,000 - - 589
Advances from Federal Home Loan Bank 30,000 30,000 37,000 14,000 16,000
Repurchase agreements 12,740 17,902 17,246 16,905 14,696
Trust preferred securities 10,310 10,310 20,620 20,620 20,620
Accrued interest payable 264 355 655 425 639
Other liabilities 4,325 3,462 3,902 4,198 4,707
Total liabilities 608,545 604,290 603,490 588,867 575,485
Equity
Preferred stock 13,983 - - - -
Common stock 12,569 12,569 12,569 12,569 12,569
Additional paid-in capital 15,461 15,418 15,403 15,391 15,412
Retained earnings 34,379 33,075 31,757 30,708 29,899
Accumulated other comprehensive
income 918 831 908 407 74
Treasury stock (1,627) (1,627) (1,627) (1,640) (1,685)
------ ------ ------ ------ ------
Total equity 75,683 60,266 59,010 57,435 56,269
------ ------ ------ ------ ------
Total liabilities and equity $684,228 $664,556 $662,500 $646,302 $631,754
======== ======== ======== ======== ========
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except share data) Three Months Ended Twelve Months Ended
------------------ -------------------
December September June March December December December
Interest income 2014 2014 2014 2014 2013 2014 2013
---- ---- ---- ---- ---- ---- ----
Loans
Taxable $5,707 $5,855 $5,654 $5,241 $5,428 $22,457 $22,834
Nontaxable 6 9 13 16 13 44 67
Securities
Taxable 300 279 310 309 313 1,198 1,244
Nontaxable 177 178 179 175 181 709 703
Total interest income 6,190 6,321 6,156 5,741 5,935 24,408 24,848
Interest expense
Deposits 483 500 503 498 513 1,984 2,231
Repurchase Agreements & Other 53 23 4 11 14 91 58
Federal Home Loan Bank advances 95 94 71 74 82 334 339
Trust preferred securities 54 354 330 333 330 1,071 1,407
Total interest expense 685 971 908 916 939 3,480 4,035
Net interest income 5,505 5,350 5,248 4,825 4,996 20,928 20,813
Provision for loan losses 150 150 150 - - 450 900
Net interest income after provision
for loan losses 5,355 5,200 5,098 4,825 4,996 20,478 19,913
Noninterest income
Wealth Management Fees 679 670 649 632 689 2,630 2,653
Customer service fees 686 730 665 610 673 2,691 2,587
Gain on sale of mtg. loans &
OMSR's 1,003 1,442 1,211 572 776 4,228 5,066
Mortgage loan servicing fees, net 43 287 156 245 241 731 1,246
Gain on sale of non-mortgage
loans 143 71 84 23 303 321 585
Data service fees 324 337 322 306 295 1,289 1,500
Net gain on sales of securities 104 - 56 - - 160 48
Gain/(loss) on sale/disposal of
assets (15) (15) (15) (34) (265) (79) (484)
Other income 197 287 167 205 237 856 845
Total non-interest income 3,164 3,809 3,295 2,559 2,949 12,827 14,046
Noninterest expense
Salaries and employee benefits 3,179 3,435 3,451 3,120 3,027 13,185 13,497
Net occupancy expense 521 508 485 573 494 2,087 2,055
Equipment expense 625 616 645 639 651 2,525 2,810
Data processing fees 230 238 249 211 254 928 714
Professional fees 465 435 465 338 443 1,703 1,827
Marketing expense 166 105 170 123 136 564 471
Telephone and communication 91 94 107 112 110 404 582
Postage and delivery expense 197 195 187 204 173 783 796
State, local and other taxes 94 89 95 92 138 370 550
Employee expense 111 122 140 115 154 488 557
Intangible amortization expense 55 55 131 131 129 372 564
OREO Impairment - - - - - - 33
Other expenses 630 996 502 421 490 2,548 2,055
Total non-interest expense 6,364 6,888 6,627 6,079 6,199 25,957 26,511
Income before income tax expense 2,155 2,121 1,767 1,306 1,746 7,348 7,448
Income tax expense 631 607 521 326 522 2,085 2,243
Net income $1,524 $1,513 $1,246 $980 $1,224 $5,263 $5,205
Preferred Stock Dividends - - - - - - -
Net income available to common 1,524 1,513 1,246 980 1,224 5,263 5,205
Common share data:
Basic earnings per common share $0.31 $0.31 $0.26 $0.20 $0.25 $1.08 $1.07
Diluted earnings per common share $0.30 $0.31 $0.25 $0.20 $0.25 $1.07 $1.07
Average shares outstanding ($ in thousands):
Basic: 4,875 4,875 4,874 4,871 4,870 4,874 4,866
Diluted: 5,044 4,900 4,893 4,894 4,882 4,932 4,878
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
At and for the
($ 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 2014 2014 2014 2014 2013 2014 2013
--------------------- ---- ---- ---- ---- ---- ---- ----
Net interest income $5,505 5,350 5,248 4,825 4,996 20,928 20,813
Tax-equivalent adjustment $94 96 99 98 100 388 297
Tax-equivalent net interest income $5,599 5,446 5,347 4,923 5,096 21,316 21,110
Provision for loan loss $150 150 150 - - 450 900
Noninterest income $3,164 3,809 3,295 2,559 2,949 12,827 14,046
Total revenue, tax-equivalent $8,763 9,255 8,642 7,482 8,045 34,143 35,156
Noninterest expense $6,364 6,888 6,627 6,079 6,199 25,957 26,511
Pre provision pretax income $2,305 2,271 1,917 1,306 1,746 7,798 8,348
Pretax income $2,155 2,121 1,767 1,306 1,746 7,348 7,448
Net income $1,524 1,513 1,246 980 1,224 5,263 5,205
PER SHARE INFORMATION:
Basic earnings per share $0.31 0.31 0.26 0.20 0.25 1.08 1.07
Diluted earnings per share $0.31 0.31 0.25 0.20 0.25 1.07 1.07
Common dividends $0.045 0.040 0.040 0.035 0.035 0.16 0.12
Book value per common share $11.96 12.36 12.10 11.78 11.55 11.96 11.55
Tangible book value per common share $9.24 8.94 8.67 8.32 8.06 9.24 8.06
Market price per share $9.40 9.05 8.37 8.35 7.88 9.40 7.88
PERFORMANCE RATIOS:
Return on average assets 0.89% 0.90% 0.76% 0.61% 0.76% 0.78% 0.81%
Return on average common equity 9.40% 10.14% 8.55% 6.88% 8.75% 8.74% 9.52%
Return on avg. tangible common equity 13.03% 14.09% 12.01% 9.89% 12.71% 12.22% 13.93%
Efficiency ratio 72.78% 74.60% 76.03% 80.55% 76.40% 75.80% 74.43%
Earning asset yield 4.18% 4.29% 4.16% 4.10% 4.31% 4.21% 4.43%
Cost of interest bearing liabilities 0.53% 0.76% 0.72% 0.74% 0.76% 0.69% 0.81%
Net interest margin 3.66% 3.58% 3.53% 3.39% 3.50% 3.55% 3.68%
Tax equivalent effect 0.07% 0.06% 0.07% 0.07% 0.07% 0.07% 0.07%
Net interest margin - fully tax equivalent basis 3.73% 3.64% 3.60% 3.46% 3.57% 3.62% 3.75%
ASSET QUALITY RATIOS:
Gross charge-offs $101 94 330 323 163 848 1,328
Recoveries $9 90 21 85 7 205 260
Net charge-offs $92 4 309 238 156 643 1,068
Nonaccruing loans/ Total loans 0.89% 0.63% 0.79% 0.91% 1.01% 0.89% 1.01%
Nonperforming loans/ Total loans 1.16% 0.95% 1.12% 1.29% 1.38% 1.16% 1.38%
Nonperforming assets/ Loans & OREO 1.22% 1.06% 1.22% 1.41% 1.51% 1.22% 1.51%
Nonperforming assets/ Total assets 0.92% 0.81% 0.93% 1.05% 1.14% 0.92% 1.14%
Allowance for loan loss/ Nonperforming loans 112.98% 139.22% 115.82% 108.50% 105.80% 112.98% 105.80%
Allowance for loan loss/ Total loans 1.31% 1.33% 1.30% 1.40% 1.46% 1.31% 1.46%
Net loan charge-offs/ Average loans (ann.) 0.07% N/M 0.25% 0.20% 0.13% 0.13% 0.23%
Loan loss provision/ Net charge-offs 163.04% N/M 48.54% 0.00% 0.00% 69.98% 84.27%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits 93.72% 94.52% 96.58% 90.46% 92.10% 93.72% 92.10%
Equity/ Assets 11.06% 9.07% 8.91% 8.89% 8.91% 11.06% 8.91%
Tangible equity/ Tangible assets 6.75% 6.73% 6.54% 6.44% 6.39% 6.75% 6.39%
END OF PERIOD BALANCES
Total loans $516,336 505,924 506,127 481,924 477,303 516,336 477,303
Total assets $684,228 664,556 662,500 646,302 631,754 684,228 631,754
Deposits $550,906 535,261 524,067 532,719 518,234 550,906 518,234
Stockholders equity $75,683 60,266 59,010 57,435 56,269 75,683 56,269
Intangibles $16,636 16,691 16,746 16,877 17,008 16,636 17,008
Preferred equity $13,983 - - - - 13,983 -
Tangible equity $45,064 43,575 42,264 40,558 39,261 45,064 39,261
Full-time equivalent employees 190 195 193 197 200 190 200
Period end basic shares outstanding 4,875 4,875 4,875 4,874 4,870 4,875 4,870
Period end outstanding (Series A Converted) 1,451 - - - - 1,451 -
AVERAGE BALANCES
Total loans $516,517 512,151 500,167 476,553 479,701 501,486 469,603
Total earning assets $600,851 598,223 594,256 569,524 571,332 589,332 565,390
Total assets $687,674 673,213 658,108 646,864 645,148 672,277 639,920
Deposits $551,906 534,841 531,786 524,145 525,334 535,560 521,648
Stockholders equity $64,846 59,684 58,276 56,977 55,925 60,186 54,700
Intangibles $16,664 16,719 16,811 17,347 17,404 16,787 17,323
Preferred equity $1,398 - - - - 350 -
Tangible equity $46,784 42,965 41,465 39,630 38,521 43,049 37,377
Average diluted shares outstanding 4,916 4,900 4,893 4,894 4,882 4,907 4,878
SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three & Twelve Months Ended December 31, 2014 and 2013
--------------------------------------------------------------
($ in Thousands) Three Months Ended December 31, 2014 Three Months Ended December 31, 2013
Average Average Average Average
Assets Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
Taxable securities $66,235 300 1.81% $73,306 313 1.71%
Nontaxable securities 18,099 268 5.93% 18,325 274 5.99%
Federal funds sold - - N/A - - N/A
Loans, net 516,517 5,716 4.43% 479,701 5,448 4.54%
----- ----- ----- -----
Total earning assets 600,851 6,284 4.18% 571,332 6,035 4.23%
Cash and due from banks 35,261 22,369
Allowance for loan losses (6,730) (7,075)
Premises and equipment 13,686 13,811
Other assets 44,606 44,711
Total assets $687,674 $645,148
Liabilities
Savings and interest bearing demand $290,329 40 0.06% $265,258 18 0.03%
Time deposits 165,227 443 1.07% 176,609 495 1.12%
Repurchase agreements & Other 20,582 53 1.03% 15,765 14 0.36%
Advances from Federal Home Loan Bank 30,000 95 1.27% 16,000 82 2.05%
Trust preferred securities 10,310 54 2.10% 20,620 330 6.40%
--- --- --- ---
Total interest bearing liabilities 516,448 685 0.53% 494,252 939 0.76%
Non interest bearing demand 96,350 83,467
Other liabilities 10,030 11,504
Total liabilities 622,828 589,223
Equity 64,846 55,925
Total liabilities and equity $687,674 $645,148
Net interest income (tax equivalent basis) $5,599 $5,096
Net interest income as a percent of average interest-
earning assets 3.73% 3.57%
Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013
------------------------------------- -------------------------------------
Average Average Average Average
Assets Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
Taxable securities $69,795 1,198 1.72% $78,520 1,244 1.58%
Nontaxable securities 18,051 1,074 5.95% 17,267 1,065 6.17%
Federal funds sold - - N/A - - N/A
Loans, net 501,486 22,524 4.49% 469,603 22,936 4.88%
------ ----- ------ -----
Total earning assets 589,332 24,796 4.21% 565,390 25,245 4.47%
Cash and due from banks 24,665 20,827
Allowance for loan losses (6,785) (6,962)
Premises and equipment 13,725 14,635
Other assets 51,340 46,030
Total assets $672,277 $639,920
Liabilities
Savings and interest bearing demand $275,188 105 0.04% $262,954 136 0.05%
Time deposits 171,399 1,879 1.10% 180,154 2,095 1.16%
Repurchase agreements & Other 18,764 91 0.48% 13,085 58 0.44%
Advances from Federal Home Loan Bank 24,294 334 1.37% 18,551 339 1.83%
Trust preferred securities 17,448 1,071 6.14% 20,620 1,407 6.82%
----- ----- ----- -----
Total interest bearing liabilities 507,093 3,480 0.69% 495,364 4,035 0.81%
Non interest bearing demand 88,973 78,540
Other liabilities 16,025 11,316
Total liabilities 612,091 585,220
Equity 60,186 54,700
Total liabilities and equity $672,277 $639,920
Net interest income (tax equivalent basis) $21,316 $21,210
Net interest income as a percent of average interest-
earning assets 3.62% 3.75%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sb-financial-group-inc-announces-fourth-quarter-and-full-year-2014-results-300023872.html
SOURCE SB Financial Group, Inc.
