SB Financial Group, Inc. Announces Fourth-Quarter and Full-Year 2013 Results

Sees continued progress in expense reductions and gains in asset quality
- Full-year EPS rises 8.1 percent to $1.07 from 99 cents in 2012; fourth-quarter EPS lower on slowing mortgage origination environment
- Operating expense down 14.1 percent year over year; down 3.5 percent year-to-date
- Nonperforming assets declined to 1.1 percent of total assets; down 19.0 percent from year-end 2012
- Return on assets at 81 basis points and return on equity at 9.5 percent for full-year 2013

PR Newswire

DEFIANCE, Ohio, Jan. 21, 2014 /PRNewswire/ -- SB Financial Group, Inc. (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
Ended

Full Year

(in $000's except ratios and per share data)

 

Dec.
2013

Dec.
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.
2013

Sep.
2013

Jun.
2013

Mar.
2013

Dec.
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 &
Restructured

$  6,583

$  7,336

$  5,648

$  6,084

$  6,563

                             % 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%

 

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