Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

News

SB Financial Group Announces Record First Quarter 2021 Results

gbafNews28

DEFIANCE, Ohio, April 30, 2021 /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, private client and title insurance services today reported earnings for the first quarter ended March 31, 2021.

First quarter 2021 highlights over prior-year first quarter include:

  • Net income of $7.1 million up $6.4 million or 939.6 percent; diluted earnings per share (“EPS”) of $0.97, up $0.88 per share or 977.8 percent, which was the highest quarterly earnings in Company history
  • Adjusted net income, excluding the impact of the Originated Mortgage Servicing Rights (“OMSR”) recapture, was $4.9 million, which yields a decrease in adjusted EPS of $0.29 to $0.68. Adjusted EPS was up $0.37, or 119.4, percent from adjusted EPS in the prior-year quarter
  • Mortgage origination volume of $155.8 million, an increase of $54.5 million, or 53.7 percent
  • Pre-tax, pre-provision income of $9.6 million, up $8.3 million or 639.7 percent

The twelve months ended March 31, 2021, highlights over the prior-year twelve months include:

  • Loan growth of $17.4 million, or 2.1 percent, which includes Paycheck Protection Program (“PPP”) loan balances and loans acquired in the Edon acquisition
  • Deposit growth of $256.3 million, or 29.7 percent, driven by consumer and small business liquidity and the Edon acquisition
  • Mortgage origination volume of $748.7 million; servicing portfolio of $1.3 billion, which is up $87.8 million, or 7.2 percent

 

Highlights

Three Months Ended

($ in thousands, except per share & ratios)

Mar. 2021

Mar. 2020

% Change

Operating revenue 

$      20,547

$      10,709

91.9%

Interest income 

10,705

10,644

0.6%

Interest expense

1,080

2,096

-48.5%

Net interest income 

9,625

8,548

12.6%

Provision for loan losses

750

600

25.0%

Noninterest income

10,922

2,161

405.4%

Noninterest expense

10,909

9,406

16.0%

Net income 

7,081

681

939.8%

Earnings per diluted share

0.97

0.09

977.8%

Return on average assets

2.21%

0.26%

750.0%

Return on average equity

19.78%

1.99%

894.0%

Non-GAAP Measures

Adjusted net income

$        4,943

$        2,428

103.6%

Adjusted diluted EPS

0.68

0.31

119.4%

Adjusted return on average assets

1.54%

0.92%

67.4%

Adjusted pre-tax, pre-provision income

6,932

3,514

97.3%

 

“The first quarter marks a record quarter in earnings for our Company.  We earned $0.97 per share in the quarter up significantly from the prior year as we recaptured servicing rights impairment and continued to deliver higher mortgage and PPP volume,” said Mark A. Klein, Chairman, President, and CEO of SB Financial.   “Our Residential Mortgage group originated strong volume of $156 million, and we processed nearly $40 million of PPP forgiveness from the first phase, while originating over $22 million in the second phase.”

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was up 91.9 percent from the first quarter of 2020.

  • Net interest income was up 12.6 percent from the year-ago quarter, and up 4.0 percent from the linked quarter.
  • Net interest margin on a fully taxable equivalent basis (FTE) was down from the year-ago quarter by 27 basis points but was flat to the linked quarter due to higher transactional cash balances, PPP forgiveness realization and mortgage volume. Loan yields were down 12 basis points in total from the prior year as the decline in loan pricing was offset by PPP forgiveness.
  • Noninterest income was up 405.4 percent year over year and up 22.7 percent from the linked quarter, due to servicing rights recapture and mortgage volume.

Mortgage Loan Business

Mortgage loan originations for the first quarter of 2021 were $155.8 million, up $54.5 million, or 53.7 percent, from the year-ago quarter.  Total sales of originated loans were $136.7 million, up $52.2 million, or 61.8 percent.  For the trailing twelve months, SB Financial had total volume of $694.2 million, of which $290.9 million (42 percent) was new purchase/construction lending, $217.0 million (31 percent) was internal refinance, and the remaining $186.3 million (27 percent) was new customer refinance volume.

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $8.2 million for the first quarter of 2021, compared to a loss of $0.1 million for the year-ago quarter.  The mortgage servicing valuation adjustment for the first quarter of 2021 was a positive $2.7 million, compared to a negative adjustment of $2.2 million for the first quarter of 2020.  The aggregate servicing valuation impairment ended the quarter at $2.2 million.  The servicing portfolio at March 31, 2021, was $1.3 billion up $87.8 million or 7.2 percent, from $1.2 billion at March 31, 2020.  Normal amortization was up 99 percent from the prior year due to higher refinance activity.

Mr. Klein noted, “Carrying the momentum from a record breaking 2020, we originated $156 million in residential mortgages in the quarter.  Gain on sale yields remained robust and our hedge allowed us to manage the volatility of the rate fluctuations throughout the quarter.  We did see more competitive pricing in the quarter and the availability of homes for purchase in several of our markets continues to be a strain on activity.  Refinance volume also maintained a strong pace in the quarter at over 62 percent of our total volume.”

 

Mortgage Banking

($ in thousands)

Mar. 2021

Dec. 2020

Sep. 2020

Jun. 2020

Mar. 2020

Mortgage originations

$     155,836

$     168,997

$     200,158

$     223,671

$     101,365

Mortgage sales

136,708

143,151

166,201

204,628

84,476

Mortgage servicing portfolio

1,304,097

1,299,698

1,293,037

1,261,746

1,216,292

Mortgage servicing rights

10,490

7,759

8,535

8,168

8,974

Mortgage servicing revenue

Loan servicing fees

859

857

813

782

757

OMSR amortization

(1,187)

(1,283)

(1,308)

(1,574)

(597)

Net administrative fees

(328)

(426)

(495)

(792)

160

OMSR valuation adjustment

2,706

(611)

326

(1,088)

(2,212)

Net loan servicing fees

2,378

(1,037)

(169)

(1,880)

(2,052)

Gain on sale of mortgages

5,859

7,197

8,085

8,119

1,949

Mortgage banking revenue, net

$         8,237

$         6,160

$         7,916

$         6,239

$          (103)

Noninterest Income and Noninterest Expense

SB Financial's noninterest income includes revenue from a diverse group of services, such as wealth management, deposit fees, residential loan sales, and the sale of Small Business Administration (SBA) and U.S. Department of Agriculture (USDA) loans.  Wealth management assets under the Company's care were $576.5 million as of March 31, 2021, up $149.4 million, or 35.0 percent, compared to the prior year.  For the first quarter of 2021, noninterest income as a percentage of total operating revenue was 53.2 percent, due to the recapture, with the adjusted level at 46.1 percent.  Reflective of the robust mortgage market, the Company's Title Agency provided revenue in the quarter of $0.5 million, nearly double from the prior year. 

For the first quarter of 2021, noninterest expense of $10.9 million was up $1.5 million year over year, or 16.0 percent, reflecting a 5.7 times positive operating leverage.  Mortgage commission was up due to the 55 percent increase in volume, and we have expanded our technology spend in order to increase the digital options for both our clients and employees.

Mr. Klein stated, “The recapture of over one half of our servicing rights impairment drove our non-interest income levels significantly higher in the quarter.  We saw higher than expected mortgage volume in the quarter, which was up 55 percent from the prior year and only down 7 percent from the linked quarter.  Due to the strong revenue for the quarter, operating leverage was a positive 5.7 times.  After our participation in the first phase of PPP with $84 million in originations, we are assisting small businesses again with $28 million thus far in originations in the second phase.  Operating expense was up due to increased mortgage volume, however we are still below anticipated expense levels for marketing and client outreach.”

 

Noninterest Income / Noninterest Expense 

($ in thousands, except ratios)

Mar. 2021

Dec. 2020

Sep. 2020

Jun. 2020

Mar. 2020

Noninterest Income (NII)

$       10,922

$         8,902

$       10,418

$         8,615

$         2,161

NII / Total Revenue

53.2%

49.0%

52.9%

49.3%

20.2%

NII / Average Assets

3.4%

2.9%

3.4%

3.0%

0.8%

Total Revenue Growth

91.9%

24.7%

36.4%

39.6%

-5.6%

Noninterest Expense (NIE)

$       10,909

$       10,684

$       11,335

$       11,662

$         9,406

Efficiency Ratio

53.0%

58.8%

57.5%

66.7%

87.8%

NIE / Average Assets

3.4%

3.5%

3.7%

4.0%

3.5%

Net Noninterest Expense/Avg. Assets

0.0%

-0.6%

-0.3%

-1.0%

-2.7%

Total Expense Growth

16.0%

5.0%

19.3%

28.0%

9.0%

Operating Leverage

5.7

4.9

1.9

1.4

-0.6

Balance Sheet

Total assets as of March 31, 2021, were $1.33 billion, up $237.6 million, or 21.8 percent, from the year ago quarter due to the impact of the Edon acquisition and PPP activity.  Total equity as of March 31, 2021, was $144.0 million, up 5.9 percent from a year ago, and comprised 10.9 percent of total assets. 

Total loans held for investment were $848.2 million at March 31, 2021, up $17.4 million, or 2.1 percent, from March 31, 2020.  Commercial loans were up $27.6 million, or 18.2 percent, commercial real estate up $7.2 million or 1.9 percent and agricultural loans increased $0.7 million, or 1.6 percent.   Absent the effects of the Edon acquisition and PPP loans, loan balances were down $51.4 million from the year ago quarter.

The investment portfolio of $183.2 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 13.8 percent of assets at March 31, 2021, and was up 63.0 percent from the year-ago period.  Deposit balances of $1.12 billion at March 31, 2021, increased by $256.3 million, or 29.7 percent, since March 31, 2020.  Growth from the prior year included $160.0 million in checking and $96.3 million in savings and time deposit balances.

Mr. Klein continued, “Asset quality remained stable, with non-performing assets down 11 percent from the linked quarter and net recoveries this quarter in loan losses.  Despite these strong metrics, we continued to add to our allowance due to potential long term impact from the pandemic.  Our reserve level is now at $13.3 million and when adjusted for PPP balances represents a strong 1.68 percent of our total loans.”

 

Loan Balances

($ in thousands, except ratios)

Mar. 2021

Dec. 2020

Sep. 2020

Jun. 2020

Mar. 2020

Annual
Growth

Commercial

$       179,157

$       203,256

$       216,667

$       222,108

$       151,538

$         27,619

% of Total

21.1%

23.3%

24.5%

24.6%

18.2%

18.2%

Commercial RE

385,403

370,984

371,947

375,450

378,212

7,191

% of Total

45.4%

42.5%

42.0%

41.6%

45.5%

1.9%

Agriculture

48,405

55,251

57,420

58,817

47,660

745

% of Total

5.7%

6.3%

6.5%

6.5%

5.7%

1.6%

Residential RE

176,998

182,076

178,393

184,684

189,738

(12,740)

% of Total

20.9%

20.9%

20.1%

20.6%

22.9%

-6.7%

Consumer & Other

58,213

61,156

61,423

60,489

63,616

(5,403)

% of Total

6.9%

7.0%

6.9%

6.7%

7.7%

-8.5%

Total Loans

$       848,176

$       872,723

$       885,850

$       901,548

$       830,764

$         17,412

Total Growth Percentage

2.1%

Deposit Balances

($ in thousands, except ratios)

Mar. 2021

Dec. 2020

Sep. 2020

Jun. 2020

Mar. 2020

Annual
Growth

Non-Int DDA

$       273,026

$       251,649

$       225,003

$       229,042

$       170,920

$       102,106

% of Total

24.4%

24.0%

22.2%

23.1%

19.8%

59.7%

Interest DDA

191,593

176,785

164,248

154,143

133,722

57,871

% of Total

17.1%

16.9%

16.2%

15.6%

15.5%

43.3%

Savings

218,260

174,864

169,474

161,182

138,863

79,397

% of Total

19.5%

16.7%

16.7%

16.2%

16.0%

57.2%

Money Market

249,088

216,164

204,862

189,380

169,209

79,879

% of Total

22.2%

20.6%

20.2%

19.1%

19.6%

47.2%

Time Deposits

188,229

229,549

250,428

256,840

251,177

(62,948)

% of Total

16.8%

21.9%

24.7%

25.9%

29.2%

-25.1%

Total Deposits

$    1,120,196

$    1,049,011

$    1,014,015

$       990,587

$       863,891

$       256,305

Total Growth Percentage

29.7%

Asset Quality

SB Financial reported nonperforming assets of $6.5 million as of March 31, 2021, down $0.2 million from the year-ago quarter.  The coverage of nonperforming loans by the loan loss allowance was at 207 percent at March 31, 2021, up from 136 percent at March 31, 2020.  

 

Nonperforming Assets

Annual
Change

($ in thousands, except ratios)

Mar. 2021

Dec. 2020

Sep. 2020

Jun. 2020

Mar. 2020

Commercial & Agriculture

$             615

$             902

$          1,140

$          1,204

$          1,309

$            (694)

% of Total Com./Ag. loans

0.27%

0.35%

0.42%

0.43%

0.66%

-53.0%

Commercial RE 

2,402

2,412

2,475

2,484

1,816

586

% of Total CRE loans

0.62%

0.65%

0.67%

0.66%

0.48%

32.3%

Residential RE

2,138

2,704

2,481

2,538

2,330

(192)

% of Total Res. RE loans

1.21%

1.49%

1.39%

1.37%

1.23%

-8.2%

Consumer & Other

480

408

313

308

327

153

% of Total Con./Oth. loans  

0.82%

0.67%

0.51%

0.51%

0.51%

46.8%

Total Nonaccruing Loans 

5,635

6,426

6,409

6,534

5,782

(147)

% of Total loans

0.66%

0.74%

0.72%

0.72%

0.70%

-2.5%

Accruing Restructured Loans

794

810

789

804

816

(22)

Total Change (%)

-2.7%

Total Nonaccruing & Restructured Loans

6,429

7,236

7,198

7,338

6,598

(169)

% of Total loans

0.76%

0.83%

0.81%

0.81%

0.79%

-2.6%

Foreclosed Assets

43

23

76

382

85

(42)

Total Change (%)

-49.4%

Total Nonperforming Assets

$          6,472

$          7,259

$          7,274

$          7,720

$          6,683

$            (211)

% of Total assets

0.49%

0.58%

0.60%

0.64%

0.61%

-3.2%

The Company continued to provide payment relief to clients as needed, with total commercial forbearances at March 31, 2021 of $4.9 million.  Additionally, sold mortgage loans in forbearance totaled $5.7 million, which is down $6.0 million from the linked quarter. 

 

Loans in COVID Deferral Status

Linked Qtr.
Change

($ in thousands, except ratios)

Mar. 2021

Dec. 2020

Sep. 2020

Jun. 2020

Total Commercial

$              4,883

$            23,175

$            36,366

$           142,682

$           (18,292)

Total Consumer

28

350

Total Portfolio Mortgage

1,959

10,274

Total Balance Sheet Deferrals

$              4,883

$            23,175

$            38,353

$           153,306

$           (18,292)

% of Total loans

0.58%

2.66%

4.33%

17.00%

-16.43%

Total Sold Mortgage

$              5,705

$            11,685

$            42,317

$            41,751

$             (5,980)

Webcast and Conference Call

The Company will hold a related conference call and webcast on May 3, 2021, at 11:00 a.m. EDT.  Interested parties may access the conference call by dialing 1-888-338-9469.  The webcast can be accessed at ir.yourstatebank.com.  An audio replay of the call will be available on the Company's website.

About SB Financial Group                                                                          

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title).  State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 22 offices; 21 in nine Ohio counties and one in Fort Wayne, Indiana, and 23 full-service ATMs. State Bank has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan.  Peak Title provides title insurance and opinions throughout the Tri-State region. SB Financial's common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.

In May 2020, SB Financial was ranked #125 on the American Banker Magazine's list of Top 200 Publicly Traded Community Banks and Thrifts based on three-year average return on equity (“ROE”).

Forward-Looking Statements

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, the duration and scope of the COVID-19 outbreak in the United States and the market areas in which SB Financial and its subsidiaries operate, including the impact to the state and local economies of prolonged shelter in place orders and the pandemic generally, 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

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company's management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders.  In addition, the Company excludes the non-GAAP items of OMSR impairment and merger related costs from net income to report an adjusted net income level.  Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Investor Contact Information:

Mark A. Klein
Chairman, President and 
Chief Executive Officer
Mark.Klein@YourStateBank.com

Anthony V. Cosentino
Executive Vice President and 
Chief Financial Officer
Tony.Cosentino@YourStateBank.com

 

SB FINANCIAL GROUP, INC.  

CONSOLIDATED BALANCE SHEETS – (Unaudited)

March

December

September

June

March

($ in thousands)

2021

2020

2020

2020

2020

ASSETS

Cash and due from banks

$     206,036

$     140,690

$       94,641

$       85,661

$       56,393

Interest bearing time deposits

3,562

5,823

8,956

10,542

Available-for-sale securities

177,918

149,406

130,315

104,289

107,727

Loans held for sale

8,689

7,234

13,943

13,742

11,328

Loans, net of unearned income

848,176

872,723

885,850

901,548

830,764

Allowance for loan losses

(13,326)

(12,574)

(11,793)

(10,013)

(8,958)

Premises and equipment, net

23,233

23,557

23,785

23,662

23,599

Federal Reserve and FHLB Stock, at cost

5,303

5,303

5,303

4,837

4,648

Foreclosed assets held for sale, net

43

23

76

382

85

Interest receivable

3,371

3,799

4,159

4,272

2,940

Goodwill

22,091

22,091

22,091

22,117

17,792

Cash value of life insurance

17,651

17,530

17,453

17,375

17,299

Mortgage servicing rights

10,490

7,759

8,535

8,168

8,974

Other assets

12,630

14,475

14,927

16,354

15,722

Total assets

$  1,325,867

$  1,257,839

$  1,218,241

$  1,202,936

$  1,088,313

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non interest bearing demand

$     273,026

$     251,649

$     225,003

$     229,042

$     170,920

Interest bearing demand

191,593

176,785

164,248

154,143

133,722

Savings

218,260

174,864

169,474

161,182

138,863

Money market

249,088

216,164

204,862

189,380

169,209

Time deposits

188,229

229,549

250,428

256,840

251,177

Total deposits

1,120,196

1,049,011

1,014,015

990,587

863,891

Short-term borrowings

24,321

20,189

20,710

23,826

36,881

Federal Home Loan Bank advances

8,000

8,000

8,000

13,000

16,000

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Interest payable

489

616

946

929

1,131

Other liabilities

18,585

26,790

22,913

26,403

24,195

Total liabilities

1,181,901

1,114,916

1,076,894

1,065,055

952,408

Shareholders' Equity

Common stock

54,463

54,463

54,463

54,463

54,463

Additional paid-in capital

14,755

14,845

14,782

14,780

14,655

Retained earnings

90,883

84,578

80,012

75,526

72,641

Accumulated other comprehensive income (loss)

(457)

2,210

2,221

2,320

2,049

Treasury stock

(15,678)

(13,173)

(10,131)

(9,208)

(7,903)

Total shareholders' equity

143,966

142,923

141,347

137,881

135,905

Total liabilities and shareholders' equity

$  1,325,867

$  1,257,839

$  1,218,241

$  1,202,936

$  1,088,313

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME – (Unaudited)

($ in thousands, except per share & ratios)

At and for the Three Months Ended

March

December

September

June

March

Interest income

2021

2020

2020

2020

2020

Loans

  Taxable 

$        9,926

$        9,816

$     10,179

$        9,945

$        9,795

  Tax exempt

48

54

47

59

79

Securities

  Taxable 

643

632

494

510

692

  Tax exempt

88

87

87

81

78

Total interest income

10,705

10,589

10,807

10,595

10,644

Interest expense

Deposits

962

1,218

1,423

1,549

1,880

Repurchase agreements & other

11

10

12

20

28

Federal Home Loan Bank advances

56

58

59

92

100

Trust preferred securities

51

52

54

62

88

Total interest expense

1,080

1,338

1,548

1,723

2,096

Net interest income

9,625

9,251

9,259

8,872

8,548

Provision for loan losses 

750

800

1,800

1,300

600

Net interest income after provision

  for loan losses

8,875

8,451

7,459

7,572

7,948

Noninterest income

Wealth management fees

912

863

839

775

768

Customer service fees

758

728

730

667

682

Gain on sale of mtg. loans & OMSR

5,859

7,197

8,085

8,119

1,949

Mortgage loan servicing fees, net

2,378

(1,037)

(169)

(1,880)

(2,052)

Gain on sale of non-mortgage loans

17

123

119

107

104

Title insurance revenue

521

522

517

609

265

Gain (loss) on sale of assets

(2)

181

(52)

(80)

(46)

Other

479

325

349

298

491

Total noninterest income

10,922

8,902

10,418

8,615

2,161

Noninterest expense

Salaries and employee benefits

6,620

6,556

6,995

6,419

5,427

Net occupancy expense

740

782

736

675

698

Equipment expense

732

818

888

780

700

Data processing fees

534

633

586

1,288

548

Professional fees

764

631

695

1,224

757

Marketing expense

135

172

137

141

208

Telephone and communication expense

154

156

142

122

115

Postage and delivery expense

111

108

96

96

115

State, local and other taxes

323

299

331

262

254

Employee expense

153

103

155

93

184

Other expenses

643

426

574

562

400

Total noninterest expense

10,909

10,684

11,335

11,662

9,406

Income before income tax expense

8,888

6,669

6,542

4,525

703

Income tax expense

1,807

1,311

1,292

870

22

Net income available to common shareholders

$        7,081

$        5,358

$        5,250

$        3,655

$           681

Common share data:

Basic earnings per common share

$          0.97

$          0.71

$          0.69

$          0.47

$          0.09

Diluted earnings per common share

$          0.97

$          0.71

$          0.69

$          0.47

$          0.09

Average shares outstanding (in thousands):

Basic:

7,317

7,487

7,607

7,708

7,749

Diluted: 

7,335

7,487

7,607

7,708

7,756

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS – (Unaudited)

($ in thousands, except per share & ratios)

At and for the Three Months Ended

March

December

September

June

March

SUMMARY OF OPERATIONS

2021

2020

2020

2020

2020

   Net interest income 

$        9,625

$        9,251

$        9,259

$        8,872

$        8,548

         Tax-equivalent adjustment

36

37

36

37

42

   Tax-equivalent net interest income 

9,661

9,288

9,295

8,909

8,590

   Provision for loan loss 

750

800

1,800

1,300

600

   Noninterest income

10,922

8,902

10,418

8,615

2,161

   Total operating revenue

20,547

18,153

19,677

17,487

10,709

   Noninterest expense

10,909

10,684

11,335

11,662

9,406

   Pre-tax pre-provision income

9,638

7,469

8,342

5,825

1,303

   Pretax income

8,888

6,669

6,542

4,525

703

   Net income 

7,081

5,358

5,250

3,655

681

PER SHARE INFORMATION:

   Basic earnings per share (EPS)

0.97

0.71

0.69

0.47

0.09

   Diluted earnings per share

0.97

0.71

0.69

0.47

0.09

   Common dividends

0.105

0.105

0.100

0.100

0.095

   Book value per common share

19.88

19.39

18.73

17.98

17.64

   Tangible book value per common share (TBV)

16.74

16.30

15.72

15.01

15.32

   Market price per common share

18.26

18.28

13.49

16.62

11.12

   Market price to TBV

109.1%

112.1%

85.8%

110.8%

72.6%

   Market price to trailing 12 month EPS

6.4

9.3

8.0

11.4

8.4

PERFORMANCE RATIOS:

   Return on average assets (ROAA)

2.21%

1.73%

1.73%

1.25%

0.26%

   Pre-tax pre-provision ROAA

3.01%

2.41%

2.74%

1.99%

0.49%

   Return on average equity

19.78%

15.05%

15.01%

10.31%

1.99%

   Return on average tangible equity

23.52%

17.91%

17.93%

11.91%

2.29%

   Efficiency ratio 

53.01%

58.76%

57.48%

66.68%

87.81%

   Earning asset yield

3.56%

3.66%

3.96%

3.95%

4.32%

   Cost of interest bearing liabilities

0.50%

0.64%

0.75%

0.89%

1.12%

   Net interest margin

3.20%

3.20%

3.39%

3.30%

3.47%

   Tax equivalent effect

0.01%

0.01%

0.02%

0.02%

0.01%

   Net interest margin, tax equivalent 

3.21%

3.21%

3.41%

3.32%

3.48%

   Non interest income/Average assets

3.41%

2.87%

3.42%

2.95%

0.81%

   Non interest expense/Average assets

3.40%

3.45%

3.73%

3.99%

3.54%

   Net noninterest expense/Average assets

0.00%

-0.58%

-0.30%

-1.04%

-2.73%

ASSET QUALITY RATIOS:

   Gross charge-offs

52

57

32

254

400

   Recoveries

54

39

11

10

3

   Net charge-offs

(2)

18

21

244

397

   Nonaccruing loans/Total loans

0.66%

0.74%

0.72%

0.72%

0.70%

   Nonperforming loans/Total loans

0.76%

0.83%

0.81%

0.81%

0.79%

   Nonperforming assets/Loans & OREO

0.76%

0.83%

0.82%

0.86%

0.80%

   Nonperforming assets/Total assets

0.49%

0.58%

0.60%

0.64%

0.61%

   Allowance for loan loss/Nonperforming loans

207.28%

173.77%

163.84%

136.45%

135.77%

   Allowance for loan loss/Total loans

1.57%

1.44%

1.33%

1.11%

1.08%

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

(0.00%)

0.01%

0.01%

0.11%

0.19%

   Loan loss provision/Net charge-offs

(37500.00%)

4444.44%

8571.43%

532.79%

151.13%

CAPITAL & LIQUIDITY RATIOS:

   Loans/ Deposits

75.72%

83.19%

87.36%

91.01%

96.17%

   Equity/ Assets

10.86%

11.36%

11.60%

11.46%

12.49%

   Tangible equity/Tangible assets

9.30%

9.73%

9.92%

9.75%

11.03%

   Common equity tier 1 ratio (Bank)

13.08%

12.91%

12.71%

11.97%

12.17%

END OF PERIOD BALANCES

   Total assets

1,325,867

1,257,839

1,218,241

1,202,936

1,088,313

   Total loans 

848,176

872,723

885,850

901,548

830,764

   Deposits

1,120,196

1,049,011

1,014,015

990,587

863,891

   Stockholders equity

143,966

142,923

141,347

137,881

135,905

   Goodwill and intangibles

22,728

22,745

22,763

22,813

17,830

   Tangible equity

121,238

120,178

118,584

115,068

118,075

   Mortgage servicing portfolio

1,304,097

1,299,698

1,293,037

1,261,746

1,216,292

   Wealth/Brokerage assets under care

576,503

558,409

522,360

495,025

427,129

   Total assets under care

3,206,467

3,115,946

3,033,638

2,959,707

2,731,734

   Full-time equivalent employees 

246

244

251

254

253

   Period end common shares outstanding

7,242

7,372

7,545

7,668

7,705

   Market capitalization (all)

132,239

134,760

101,782

127,442

85,680

AVERAGE BALANCES

   Total assets

1,281,635

1,238,790

1,216,843

1,169,030

1,061,365

   Total earning assets 

1,203,284

1,156,718

1,090,386

1,073,490

986,216

   Total loans 

862,898

893,244

907,483

898,216

832,975

   Deposits

1,073,641

1,031,649

1,007,679

946,053

855,272

   Stockholders equity

143,167

142,418

139,908

141,821

136,930

   Goodwill and intangibles

22,736

22,754

22,787

19,066

17,831

   Tangible equity

120,431

119,664

117,121

122,755

119,099

   Average basic shares outstanding

7,317

7,487

7,607

7,708

7,749

   Average diluted shares outstanding

7,335

7,487

7,607

7,708

7,756

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis – (Unaudited)

At and for the Three Months Ended March 31, 2021 and 2020

($ in thousands)

Three Months Ended Mar. 31, 2021

Three Months Ended Mar. 31, 2020

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities/Cash

$           332,824

$                 643

0.77%

$           146,678

$                 692

1.89%

Nontaxable securities

7,562

88

4.65%

6,563

78

4.75%

Loans, net

862,898

9,974

4.62%

832,975

9,874

4.74%

       Total earning assets

1,203,284

10,705

3.56%

986,216

10,644

4.32%

Cash and due from banks

7,775

5,512

Allowance for loan losses

(12,843)

(8,867)

Premises and equipment

23,503

23,698

Other assets

59,916

54,806

      Total assets

$        1,281,635

$        1,061,365

Liabilities

Savings, MMDA and interest bearing demand

$           614,802

$                 508

0.33%

$           442,438

$              1,083

0.98%

Time deposits

206,903

454

0.88%

254,342

797

1.25%

Repurchase agreements & other

24,134

11

0.18%

22,537

28

0.50%

Advances from Federal Home Loan Bank

8,000

56

2.80%

16,132

100

2.48%

Trust preferred securities

10,310

51

1.98%

10,310

88

3.41%

      Total interest bearing liabilities

864,149

1,080

0.50%

745,759

2,096

1.12%

Non interest bearing demand

251,936

158,492

      Total funding

1,116,085

0.39%

904,251

0.93%

Other liabilities

22,383

20,184

      Total liabilities

1,138,468

924,435

Equity

143,167

136,930

      Total liabilities and equity

$        1,281,635

$        1,061,365

Net interest income

$              9,625

$              8,548

Net interest income as a percent of average interest-earning assets – GAAP measure

3.20%

3.47%

Net interest income as a percent of average interest-earning assets – non GAAP

3.21%

3.48%

 – Computed on a fully tax equivalent (FTE) basis

 

Non-GAAP reconciliation

 Three Months Ended 

($ in thousands, except per share & ratios)

 Mar. 31, 2021 

 Mar. 31, 2020 

Total Operating Revenue

$         20,547

$         10,709

 Adjustment to (deduct)/add OMSR impairment*

(2,706)

2,212

Adjusted Total Operating Revenue

17,841

12,921

Income before Income Taxes

8,888

703

 Adjustment for OMSR

(2,706)

2,212

Adjusted Income before Income Taxes

6,182

2,915

Provision for Income Taxes

1,807

22

 Adjustment for OMSR**

(568)

465

Adjusted Provision for Income Taxes

1,239

487

Net Income

7,081

681

 Adjustment for OMSR

(2,138)

1,747

Adjusted Net Income

4,943

2,428

Diluted Earnings per Share

0.97

0.09

 Adjustment for OMSR

(0.29)

0.22

Adjusted Diluted Earnings per Share

$            0.68

$            0.31

Return on Average Assets

2.21%

0.26%

 Adjustment for OMSR

-0.67%

0.66%

Adjusted Return on Average Assets

1.54%

0.92%

*valuation adjustment to the Company's mortgage servicing rights

**tax effect is calculated using a 21% statutory federal corporate income tax rate

 

Cision View original content:http://www.prnewswire.com/news-releases/sb-financial-group-announces-record-first-quarter-2021-results-301281380.html

SOURCE SB Financial Group, Inc.

Advertisement
Editorial & Advertiser disclosure

Call for Entries

Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Newsletters with Secrets & Analysis. Subscribe Now

Recommended

Global Banking & Finance Review® is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management. Copyright © 2010-2021 GBAF Publications Ltd - All Rights Reserved.