SB Financial Group, Inc. Second Quarter 2013 Results Reported


  • Consolidated earnings up 30 percent year over year, up 33 percent YTD
     
  • YTD ROA at 82 basis points
     
  • Nonperforming assets declined to 1.20 percent of total assets
     
  • Portfolio loans increased $11.9 million, or 2.6 percent, year over year
     
  • Tangible leverage of 6.00 percent, up 15.2 percent year over year
     
  • Revenue growth of 8.2 percent year over year
     
  • Net interest margin at 3.86 percent, up 5 basis points year over year

DEFIANCE, Ohio, July 22, 2013 (GLOBE NEWSWIRE) -- 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 second quarter ended June 30, 2013.

Consolidated earnings for SB Financial include the results of the Company's Banking Group, consisting primarily of State Bank ("State Bank" or the "Bank"), and the Company's data services subsidiary, Rurbanc Data Services, Inc. (dba "RDSI Banking Systems" or "RDSI"). For the quarter ended June 30, 2013, SB Financial reported net income of $1.32 million, or $0.27 per diluted share, compared to net income of $1.01 million, or $0.21 per diluted share for the quarter ended June 30, 2012, and net income of $1.32 million, or $0.27 per diluted share, for the quarter ended March 31, 2013.

For the six months of 2013, net income was $2.64 million, or $0.54 per common share, compared to $1.99 million, or $0.41 per common share, for the prior-year six month period.

Mark Klein, President and CEO of SB Financial Group, stated, "Our second quarter results were strong and represent our fifth consecutive quarter of net income exceeding $1 million. Mortgage origination continues to provide significant fee income growth and we have been pleased to increase our net interest margin from the prior year. Asset quality continues to improve and our charge-off ratio of 13 basis points for the year reflects that improvement. Also, during the quarter we completed the transition to our new brand and it has been well-received by our employees, customers and in the communities we serve."

RESULTS OF OPERATIONS

Consolidated Revenue

Total revenue, consisting of net interest income fully tax equivalent (FTE) and noninterest income, was $9.27 million for the second quarter of 2013, up $0.70 million, or 8.2 percent, from the second quarter of 2012, and higher by $0.31 million, or 3.4 percent, from the linked quarter. Revenue was impacted in the quarter by the 13.9 percent increase in mortgage originations from the linked quarter.

Net interest income (FTE) for the 2013 second quarter was $5.45 million, up 1.7 percent year over year, from the combined impact of increases in earning assets and lower funding costs. The net interest margin (FTE) was 3.86 percent for the second quarter of 2013 compared to 3.81 percent for the second quarter of 2012. Mr. Klein continued, "We know that revenue growth in today's banking environment is a challenge. The diversity of our revenue stream has resulted in a year-over-year growth rate of 8 percent."

Noninterest Income

Noninterest income was $3.82 million for the second quarter of 2013, up $0.61 million, or 19.1 percent, from the second quarter of 2012. Mortgage loan originations for the second quarter of 2013 were $81.9 million, up $2.04 million, or 2.6 percent, from the $79.9 million generated in the second quarter of 2012. For the six months ended June 30, 2013, mortgage originations were $153.9 million, up $5.7 million, or 3.9 percent, over the six months ended June 30, 2012.

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.87 million for the second quarter of 2013 compared to $1.66 million for the linked quarter and $1.23 million for the year-ago second quarter. The mortgage servicing valuation adjustment in the second quarter of 2013 was a favorable $0.27 million, compared to $0.17 million for the linked quarter. The mortgage servicing portfolio at the end of the second quarter 2013 was $576.9 million, up $117.6 million, or 25.6 percent, from the end of the second quarter 2012.

Mortgage Banking ($000's) Three Months Ended
  Jun.
2013
Mar.
2013
Dec.
2012
Sep.
2012
Jun.
2012
Mortgage originations $ 81,945 $ 71,967 $ 93,619 $ 90,685 $ 79,901
Mortgage sales 67,050 68,431 93,993 81,862 75,227
Mortgage servicing portfolio 576,938 548,493 528,086 488,930 459,380
Mortgage servicing rights 4,613 4,068 3,775 3,346 3,359
           
Mortgage servicing revenue:          
Loan servicing fees 350 338 319 297 274
OMSR amortization (205) (330) (362) (369) (254)
Net administrative fees 145 8 (43) (72) 20
OMSR valuation adjustment 273 171 195 (120) (185)
Net loan servicing fees 418 179 152 (192) (165)
Gain on sale of mortgages 1,450 1,484 2,136 1,572 1,395
Mortgage banking revenue, net $1,868 $1,663 $2,288 $1,380 $1,230

Our fee income diversity also includes wealth management, deposit fees and income from bank owned life insurance. Wealth management increased revenue by 7.4 percent from the year-ago quarter as assets under management grew by $33.3 million, or 11.1 percent, from the second quarter of 2012. Noninterest income contributed 41.2 percent of second quarter 2013 revenue (FTE); this compares to a 37.5 percent contribution of revenue (FTE) for second quarter 2012.

Gross revenue generated by RDSI, including services provided to SB Financial/State Bank, was $0.70 million for the second quarter of 2013. Net data services fees, excluding SB Financial/State Bank intercompany transactions, were $0.46 million in the second quarter of 2013, down $0.12 million from the year-ago quarter. Mr. Klein added, "Year to date, our wealth management team has garnered a number of new relationships as well as expanded existing ones. Our revenue diversity with mortgages, wealth management and retail has positioned us well to offset the decline in our technology subsidiary, RDSI."

Data Services ($000's)  Jun. 2013 Mar. 2013 Dec. 2012 Sep. 2012 Jun. 2012
Data Processing & Network Services $ 207 $ 270 $ 179 $ 229 $ 194
Payment Solutions 493 484 549 488 633
Contract Buyout -- -- -- 53 --
Vendor Settlement -- -- 334 -- --
RDSI Gross Revenue 700 754 1,062 780 827
Less: Intercompany (242) (340) (251) (285) (251)
Net Data Services Fees $ 458 $ 414 $ 811 $ 485 $ 576
Core Data Service Fees $ 458 $ 414 $ 477 $ 432 $ 576

Loan Loss Provision

The loan loss provision was $0.20 million for the second quarter of 2013, which is flat to the second quarter of 2012. The provision expense reflects a 13.9 percent decline in nonperforming loans and a 5.8 percent reduction in net charge-offs from the prior year. The loan loss reserve at second quarter-end 2013 was 1.51 percent of total loans, providing 124.2 percent coverage of nonperforming loans; this compares to reserve coverage of 92.5 percent at second quarter-end 2012.

Noninterest Expense

For the second quarter of 2013, noninterest expense was $7.08 million, up $0.21 million, or 3.0 percent, from the 2012 second quarter. Year to date noninterest expense was $13.8 million, up $0.20 million, or 1.5 percent, from the first six months of 2012. Compensation expense has increased reflecting the higher level of mortgage originations. Expenses related to the rebranding project have been offset by the costs for FDIC insurance, which are down $0.23 million, or 54.0 percent, from the prior year.

"We are extremely pleased with the improvements we have made in expense control; growing our revenue by nearly three times our expense growth rate is gratifying," said Mr. Klein.

Balance Sheet

Total assets as of June 30, 2013 were $631.5 million, a decline of $1.04 million, or 0.2 percent, from second quarter-end 2012. Total deposits as of second quarter-end 2013 were $511.4 million, lower by $7.28 million than at second quarter-end 2012.

Total loans held for investment (HFI) were $464.0 million at June 30, 2013 compared to $452.1 million for the prior-year quarter-end, up $11.9 million, or 2.6 percent. Commercial loans accounted for the majority of growth, up $8.8 million, or 11.6 percent, and residential real estate loans, up $8.25 million, or 9.7 percent. For the six months ended June 30, 2013, loans have increased by $0.65 million, primarily from increases in commercial and residential real estate, offsetting declines in agricultural lending. Mr. Klein stated, "We were encouraged this quarter by our loan growth, especially in our commercial portfolio. Our decentralized strategy of our markets continues to give us a competitive advantage."

Loan Portfolio ($000's) Jun. 2013 Mar. 2013 Dec. 2012 Sep. 2012 Jun. 2012 Variance
YOY
Commercial $ 84,766 $ 80,431 $ 81,491 $ 76,043 $ 75,964 $ 8,802
% of Total 18.3% 17.7% 17.6% 16.7% 16.8% 11.6%
Commercial RE 199,795 199,615 201,392 198,682 199,918 (123)
% of Total 43.1% 43.8% 43.5% 43.6% 44.2% (0.1%)
Agriculture 38,552 37,950 42,276 42,988 41,093 (2,541)
% of Total 8.3% 8.3% 9.1% 9.4% 9.1% (6.2%)
Residential RE 93,292 89,669 87,859 85,727 85,046 8,246
% of Total 20.1% 19.7% 19.0% 18.8% 18.8% 9.7%
Consumer & Other 47,630 47,778 50,371 51,581 50,089 (2,459)
% of Total 10.3% 10.5% 10.9% 11.3% 11.1% (4.9%)
             
Total Loans $464,035 $455,443 $463,389 $455,021 $452,110 $ 11,925
            2.6%

Asset Quality

SB Financial continues to improve its asset quality, reporting nonperforming assets of $7.60 million for the current quarter, lower by $1.26 million, or 14.2 percent, than the prior year second quarter. Net charge-offs of $0.18 million were just 15 basis points for the quarter and were down from the prior year second quarter. Delinquency levels have remained steady, with the 30-89 day category totaling $0.93 million at the end of the 2013 second quarter compared to $2.16 million for the prior year second quarter. Mr. Klein continued, "All of our asset quality measures have shown improvement. Total delinquencies are just 0.63 percent of our portfolio and nonperforming assets are at 1.2 percent of total assets. We have continued to add to our loan loss reserve, up 6.0 percent over the prior year, while decreasing our problem assets by 14 percent."

Summary of Nonperforming Assets ($000's)
           
Nonperforming Loan Category Jun. 2013 Mar. 2013 Dec. 2012 Sep. 2012 Jun. 2012
Commercial $ 982 $ 1,135 $ 1,246 $ 1,362 $ 1,467
% of Total Commercial loans  1.16%  1.41% 1.53% 1.78% 1.93%
Commercial RE loans 519 457 782 448 1,345
% of Total CRE loans 0.26% 0.23% 0.39% 0.23% 0.67%
Agriculture -- -- -- 3 --
% of Total Ag loans -- -- -- 0.01% --
Residential RE 2,285 2,614 2,631 2,607 1,958
% of Total Res. RE loans 2.45% 2.92% 2.99% 3.04% 2.30%
Consumer & Other 600 605 646 829 545
% of Consumer & Other loans 1.26% 1.27% 1.28% 1.61% 1.09%
Total Nonaccruing Loans 4,386 4,811 5,305 5,249 5,315
% of Total Loans 0.95% 1.06% 1.14% 1.15% 1.18%
Accruing Restructured Loans 1,262 1,273 1,258 1,735 1,837
Total Nonaccruing & Restructured $ 5,648 $ 6,084 $ 6,563 $ 6,984 $ 7,152
% of Total Loans 1.22% 1.34% 1.42% 1.53% 1.58%
OREO & Repossessed Vehicles 1,955 2,270 2,367 2,415 1,708
Total Nonperforming Assets $ 7,603 $ 8,354 $ 8,930 $ 9,399 $ 8,860
% of Total Assets 1.20% 1.30% 1.40% 1.49% 1.40%

Capitalization

Capital ratios continue to improve, however it still remains a primary focus of management. The Tangible equity ratio improved by 79 basis points over the past twelve months, and now stands at 6.00 percent. All bank regulatory ratios remain in excess of "well-capitalized" levels. At June 30, 2013, State Bank's Total Risk-based Capital was estimated to be $59.0 million, $20.8 million above the well-capitalized level. The Total Risk-based Capital Ratio is estimated at 12.4 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, one 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 & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - (Unaudited)
           
  June March December September June
($ in Thousands) 2013 2013 2012 2012 2012
ASSETS          
Cash and due from banks  $ 10,750  $ 28,031  $ 19,144  $ 10,289  $ 14,636
           
Securities available for sale, at fair value  95,379  98,390  98,702  101,247  102,537
Other securities - FRB and FHLB Stock  3,748  3,748  3,748  3,748  3,748
Total investment securities  99,127  102,138  102,450  104,995  106,285
           
Loans held for sale  10,715  8,560  6,147  11,584  10,595
           
Loans, net of unearned income  464,035  455,443  463,389  455,021  452,110
Allowance for loan losses  (7,013)  (6,992)  (6,811)  (6,696)  (6,618)
Net loans  457,022  448,451  456,578  448,325  445,492
           
Premises and equipment, net  12,483  12,738  12,633  12,898  13,190
Purchased software  289  300  330  334  355
Cash surrender value of life insurance  12,742  12,659  12,577  12,491  12,401
Goodwill  16,353  16,353  16,353  16,353  16,353
Core deposits and other intangibles  913  1,066  1,219  1,376  1,534
Foreclosed assets held for sale, net  1,955  2,270  2,367  2,415  1,708
Mortgage servicing rights  4,613  4,068  3,775  3,346  3,359
Accrued interest receivable  1,575  1,618  1,235  1,832  1,597
Other assets  2,955  3,048  3,426  3,967  5,026
Total assets  $ 631,492  $ 641,300  $ 638,234  $ 630,205  $ 632,531
           
           
LIABILITIES AND EQUITY          
Deposits          
Non interest bearing demand  $ 76,355  $ 79,579  $ 77,799  $ 69,250  $ 68,918
Interest bearing demand  118,957  123,748  117,289  112,230  109,268
Savings  61,513  62,404  57,461  53,505  53,777
Money market  78,487  81,130  80,381  78,006  81,114
Time deposits  176,066  185,398  194,071  202,259  205,584
Total deposits  511,378  532,259  527,001  515,250  518,661
           
Notes payable  1,148  1,424  1,702  1,975  2,249
Advances from Federal Home Loan Bank  30,000  17,500  21,000  18,500  17,500
Repurchase agreements  9,314  10,983  10,333  13,735  15,824
Trust preferred securities  20,620  20,620  20,620  20,620  20,620
Accrued interest payable  715  515  138  4,223  3,836
Other liabilities  3,930  3,704  4,156  3,972  3,567
Total liabilities  577,105  587,005  584,950  578,275  582,257
           
Equity          
Preferred stock  --   --   --   --   -- 
Common stock   12,569  12,569  12,569  12,569  12,569
Additional paid-in capital  15,392  15,381  15,374  15,363  15,350
Retained earnings  27,648  26,476  25,280  23,755  22,452
Accumulated other comprehensive income  496  1,623  1,830  2,012  1,672
Treasury stock  (1,718)  (1,754)  (1,769)  (1,769)  (1,769)
Total equity  54,387  54,295  53,284  51,930  50,274
Total liabilities and equity  $ 631,492  $ 641,300  $ 638,234  $ 630,205  $ 632,531
 
 
SB FINANCIAL GROUP & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except share data) Three Months Ended Six Months Ended
  June March December September June June June
Interest income 2013 2013 2012 2012 2012 2013 2012
Loans              
Taxable   $ 5,874  $ 5,883  $ 5,840  $ 6,106  $ 6,037  $ 11,757  $ 11,965
Nontaxable  16  24  22  21  24  40  47
Securities              
Taxable   296  330  330  383  403  626  802
Nontaxable  174  170  157  156  146  344  293
Total interest income  6,360  6,407  6,349  6,666  6,610  12,767  13,107
               
Interest expense              
Deposits  573  606  653  694  768  1,179  1,622
Other borrowings  12  14  15  17  (2)  26  32
Repurchase Agreements  3  2  3  11  60  5  128
Federal Home Loan Bank advances  84  90  92  92  75  174  149
Trust preferred securities  338  403  431  418  441  741  1,033
Total interest expense  1,010  1,115  1,194  1,232  1,342  2,125  2,964
               
Net interest income  5,350  5,292  5,155  5,434  5,268  10,642  10,143
               
Provision for loan losses   200  299  400  300  200  499  650
               
Net interest income after provision for loan losses  5,150  4,993  4,755  5,134  5,068  10,143  9,493
               
Noninterest income              
Data service fees  458  414  811  485  576  872  1,219
Trust fees  652  643  606  646  607  1,295  1,249
Customer service fees  639  616  648  677  668  1,255  1,299
Gain on sale of mtg. loans & OMSR's  1,450  1,484  2,136  1,572  1,395  2,934  2,576
Mortgage loan servicing fees, net  418  179  152  (192)  (165)  597  164
Gain on sale of non-mortgage loans  82  156  94  170  --   238  -- 
Net gain on sales of securities  --   20  --   --   --   20  -- 
Loss on sale or disposal of assets  (129)  (105)  (54)  (151)  (50)  (234)  (106)
Other income  250  160  255  201  177  410  388
Total non-interest income  3,820  3,567  4,648  3,408  3,208  7,387  6,789
               
Noninterest expense              
Salaries and employee benefits  3,688  3,439  3,825  3,597  3,597  7,127  7,096
Net occupancy expense  513  541  494  515  528  1,054  1,076
Equipment expense  703  755  692  722  712  1,458  1,423
FDIC insurance expense  94  109  100  91  223  203  437
Fixed asset and software impairment  --   --   65  --   --   --   -- 
Data processing fees  194  77  132  103  121  271  234
Professional fees  499  429  686  451  390  928  775
Marketing expense  92  108  115  85  103  200  193
Printing and office supplies  151  46  46  39  67  197  145
Telephone and communication  158  158  146  151  139  316  283
Postage and delivery expense  209  215  204  223  200  424  429
State, local and other taxes  138  134  136  128  118  272  238
Employee expense  126  152  113  118  119  278  225
Other intangible amortization expense  153  153  158  157  158  306  315
OREO Impairment  --   33  --   --   58  33  58
Other expenses  362  321  300  345  338  683  620
Total non-interest expense  7,080  6,670  7,212  6,725  6,871  13,750  13,547
               
Income before income tax expense  1,890  1,890  2,191  1,817  1,405  3,780  2,735
Income tax expense   571  572  667  513  391  1,143  749
               
Net income   $ 1,319  $ 1,318  $ 1,524  $ 1,304  $ 1,014  $ 2,637  $ 1,986
               
Common share data:              
Basic earnings per common share  $ 0.27  $ 0.27  $ 0.31  $ 0.27  $ 0.21  $ 0.54  $ 0.41
Diluted earnings per common share  $ 0.27  $ 0.27  $ 0.31  $ 0.27  $ 0.21  $ 0.54  $ 0.41
               
Average shares outstanding ($ in thousands):              
Basic:  4,866  4,863  4,862  4,862  4,862  4,863  4,862
Diluted:   4,870  4,870  4,862  4,862  4,862  4,870  4,862
 
 
SB FINANCIAL GROUP & SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share data) Three Months Ended Six Months Ended
  June March December September June June June
SUMMARY OF OPERATIONS 2013 2013 2012 2012 2012 2013 2012
Net interest income   $ 5,350  5,292  5,155  5,434  5,268  10,642  10,143
Tax-equivalent adjustment  $ 98  100  92  91  88  198  175
Tax-equivalent net interest income   $ 5,448  5,392  5,247  5,525  5,356  10,840  10,318
Provision for loan loss   $ 200  299  400  300  200  499  650
Noninterest income  $ 3,820  3,567  4,648  3,408  3,208  7,387  6,789
Total revenue, tax-equivalent  $ 9,268  8,959  9,895  8,933  8,564  18,227  17,107
Noninterest expense  $ 7,080  6,670  7,212  6,725  6,871  13,750  13,547
Pre provision pretax income  $ 2,090  2,189  2,591  2,117  1,605  4,279  3,385
Pretax income  $ 1,890  1,890  2,191  1,817  1,405  3,780  2,735
Net income   $ 1,319  1,318  1,524  1,304  1,014  2,637  1,986
               
PER SHARE INFORMATION:              
Basic & diluted earnings per share  $ 0.27 0.27 0.31 0.27 0.21 0.54 0.41
Common dividends  $ 0.055  --   --   --   --   0.055  -- 
Book value per common share  $ 11.18  11.16  10.96  10.68  10.34  11.18  10.34
Tangible book value per common share  $ 7.57 7.52 7.28 6.97 6.59 7.57 6.59
               
PERFORMANCE RATIOS:              
Return on average assets  0.82% 0.83% 0.95% 0.82% 0.63% 0.82% 0.62%
Return on average common equity 9.70% 9.82% 11.64% 10.25% 8.20% 9.76% 8.12%
Return on avg. tangible common equity 14.25% 14.56% 17.57% 15.91% 13.01% 14.42% 12.86%
Efficiency ratio  75.54% 73.56% 71.96% 74.28% 79.20% 74.57% 78.15%
Earning asset yield 4.58% 4.65% 4.50% 4.78% 4.76% 4.62% 4.77%
Cost of interest bearing liabilities 0.81% 0.90% 0.96% 0.98% 1.05% 0.85% 1.16%
Net interest margin 3.79% 3.78% 3.65% 3.85% 3.75% 3.79% 3.64%
Tax equivalent effect 0.07% 0.08% 0.07% 0.06% 0.06% 0.07% 0.06%
Net interest margin - fully tax equivalent basis  3.86% 3.86% 3.72% 3.91% 3.81% 3.86% 3.70%
               
ASSET QUALITY RATIOS:              
Gross charge-offs  $ 213  136  300  302  252  349  726
Recoveries  $ 34  18  15  78  62  52  166
Net charge-offs  $ 179  118  285  223  190  297  560
Nonaccruing loans/ Total loans 0.95% 1.06% 1.14% 1.15% 1.18% 0.95% 1.18%
Nonperforming loans/ Total loans 1.22% 1.34% 1.42% 1.53% 1.58% 1.22% 1.58%
Nonperforming assets/ Loans & OREO 1.79% 1.95% 2.02% 2.05% 1.95% 1.79% 1.95%
Nonperforming assets/ Total assets 1.20% 1.30% 1.40% 1.49% 1.40% 1.20% 1.40%
Allowance for loan loss/ Nonperforming loans 124.2% 114.9% 103.8% 95.9% 92.5% 124.2% 92.5%
Allowance for loan loss/ Total loans 1.51% 1.54% 1.47% 1.47% 1.46% 1.51% 1.46%
Net loan charge-offs/ Average loans (ann.) 0.15% 0.10% 0.25% 0.20% 0.17% 0.13% 0.25%
Loan loss provision/ Net charge-offs 111.73% 253.39% 140.56% 134.46% 105.22% 168.01% 115.99%
               
CAPITAL & LIQUIDITY RATIOS:              
Loans/ Deposits 90.74% 85.57% 87.93% 88.31% 87.17% 90.74% 87.17%
Equity/ Assets 8.61% 8.47% 8.35% 8.24% 7.95% 8.61% 7.95%
Tangible equity/ Tangible assets 6.00% 5.87% 5.70% 5.53% 5.21% 6.00% 5.21%
               
END OF PERIOD BALANCES              
Total loans   $ 464,035  455,443  463,389  455,021  452,110  464,035 452,110
Total assets  $ 631,492  641,300  638,234  630,205  632,531  631,492 632,531
Deposits  $ 511,378  532,259  527,001  515,250  518,661  511,378 518,661
Stockholders equity  $ 54,387  54,295  53,284  51,930  50,274  54,387 50,274
Intangibles  $ 17,555  17,719  17,902  18,063  18,242  17,555 18,242
Tangible equity  $ 36,832  36,576  35,382  33,867  32,032  36,832 32,032
Full-time equivalent employees 198 204 204  199  204  198 204
Period-end basic shares outstanding  4,867  4,863  4,862  4,862  4,862 4,867 4,862
               
AVERAGE BALANCES              
Total loans   $ 464,105  459,988  455,705  454,634  446,786  462,058  448,642
Total earning assets   $ 564,050  559,383  564,564  565,144  562,169  561,665  557,371
Total assets  $ 640,382  638,801  639,048  635,012  643,859  639,698  639,926
Deposits  $ 520,259  524,901  522,970  515,795  527,992  522,585  525,313
Stockholders equity  $ 54,398  53,711  52,351  50,905  49,464  54,020  48,946
Intangibles  $ 17,361  17,512  17,665  18,126  18,299  17,437  18,057
Tangible equity  $ 37,037  36,199  34,686  32,779  31,165  36,583  30,889
 
 
SB FINANCIAL GROUP
Rate Volume Analysis - (Unaudited)
For the Three Months Ended June 30, 2013 and 2012
($ in Thousands) Three Months Ended June 30, 2013 Three Months Ended June 30, 2012
  Average   Average Average   Average
Assets Balance Interest Rate Balance Interest Rate
Taxable securities  $ 83,152  296 1.42%  $ 93,458  403 1.73%
Non-taxable securities  16,793  264 6.28%  14,357  221 6.16%
Federal funds sold  --   --   N/A  --   --   N/A
Loans, net  464,105  5,898 5.08%  454,354  6,074 5.35%
Total earning assets  564,050  6,458 4.58%  562,169  6,698 4.77%
Cash and due from banks  21,248      24,109    
Allowance for loan losses  (6,960)      (6,368)    
Premises and equipment  15,162      15,119    
Other assets  46,882      48,830    
Total assets  $ 640,382      $ 643,859    
             
Liabilities            
Savings and interest-bearing demand  $ 264,530  18 0.03%  $ 250,496  52 0.08%
Time deposits  178,162  555 1.25%  208,205  716 1.37%
Repurchase agreements  10,535  3 0.11%  17,957  60 1.34%
Advances from FHLB  21,571  84 1.56%  13,134  74 2.25%
Junior subordinated debentures  20,620  338 6.56%  20,620  421 8.17%
Notes payable & other borrowed funds  1,239  12 3.87%  2,178  19 3.52%
Total interest-bearing liabilities  496,657  1,010 0.81%  512,590  1,342 1.05%
             
Non interest-bearing demand  77,567      69,291    
Other liabilities  11,760      12,514    
Total liabilities  585,984      594,395    
Equity  54,398      49,464    
             
Total liabilities and equity  $ 640,382      $ 643,859    
             
Net interest income (tax equivalent basis)    $ 5,448      $ 5,356  
             
Net interest income as a percent of average interest-earning assets   3.86%     3.81%
             
  Six Months Ended June 30, 2013 Six Months Ended June 30, 2012
  Average   Average Average   Average
Assets Balance Interest Rate Balance Interest Rate
Taxable securities  $ 83,336  626 1.50%  $ 89,234  802 1.80%
Non-taxable securities  16,271  521 6.41%  19,495  444 4.56%
Federal funds sold  --   --   N/A  --   --   N/A
Loans, net  462,058  11,818 5.12%  448,642  12,036 5.37%
Total earning assets  561,665  12,965 4.62%  557,371  13,282 4.77%
             
Cash and due from banks  22,867      25,793    
Allowance for loan losses  (6,912)      (6,405)    
Premises and equipment  15,142      15,336    
Other assets  46,936      47,831    
Total assets  $ 639,698      $ 639,926    
             
Liabilities            
Savings and interest-bearing demand  $ 262,183  39 0.03%  $ 245,623  120 0.10%
Time deposits  183,151  1,140 1.24%  211,445  1,502 1.42%
Repurchase agreements  10,254  5 0.10%  17,543  128 1.46%
Advances from FHLB  19,599  174 1.78%  12,901  149 2.31%
Junior subordinated debentures  20,620  741 7.19%  20,620  1,033 10.02%
Notes payable & other borrowed funds  1,371  26 3.79%  2,670  32 2.40%
Total interest-bearing liabilities  497,178  2,125 0.85%  510,802  2,964 1.16%
             
Non interest-bearing demand  77,251      68,245    
Other liabilities  11,249      11,932    
             
Total liabilities  585,678      590,979    
             
Equity  54,020      48,946    
             
Total liabilities and equity  $ 639,698      $ 639,925    
             
Net interest income (tax equivalent basis)    $ 10,840      $ 10,318  
             
Net interest income as a percent of average interest-earning assets   3.86%     3.70%

            

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