tiprankstipranks
Press Releases

SB Financial Group Announces Second Quarter 2022 Results

DEFIANCE, Ohio, July 25, 2022 (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, private client and title insurance services today reported earnings for the second quarter and six months ended June 30, 2022.

Second quarter 2022 highlights over prior-year second quarter include:

  • Net income of $2.8 million; diluted earnings per share (“EPS”) of $0.40 or a 23.1 percent decrease
  • Adjusted net income, excluding the impact of the Originated Mortgage Servicing Rights (“OMSR”) recapture of $0.2 million was $2.6 million, with EPS of $0.37
  • Mortgage origination volume of $95.5 million, reflects a decrease of $69.4 million, or 42.1 percent

Six months ended June 30, 2022, highlights over prior-year six months include:

  • Net income of $5.6 million and diluted EPS of $0.79, compared to $10.8 million, or $1.49 per share or a 47.0 percent decrease
  • Adjusted net income, excluding the impact of OMSR activity of $4.8 million, down $4.0 million or 45.9 percent

Second quarter 2022 trailing twelve-month highlights include:

  • Loans excluding Paycheck Protection Program (“PPP”) loans, increased $79.3 million, or 9.7 percent from the prior year
  • Deposits decreased by $19.3 million, or 1.8 percent to $1.07 billion at quarter end
  • Mortgage origination volume of $472.1 million; servicing portfolio of $1.37 billion, which is up $0.05 billion, or 3.5 percent
Highlights Three Months Ended     Six Months Ended
($ in thousands, except per share & ratios) Jun. 2022 Jun. 2021 % Change     Jun. 2022 Jun. 2021 % Change
Operating revenue $ 14,266   $ 15,694   -9.1 %     $ 28,545   $ 36,241   -21.2 %
Interest income   10,474     10,163   3.1 %       19,869     20,868   -4.8 %
Interest expense   881     1,006   -12.4 %       1,799     2,086   -13.8 %
Net interest income   9,593     9,157   4.8 %       18,070     18,782   -3.8 %
Provision for loan losses         0.0 %           750   -100.0 %
Noninterest income   4,673     6,537   -28.5 %       10,475     17,459   -40.0 %
Noninterest expense   10,802     11,076   -2.5 %       21,661     21,985   -1.5 %
Net income   2,834     3,761   -24.6 %       5,647     10,842   -47.9 %
Earnings per diluted share   0.40     0.52   -23.1 %       0.79     1.49   -47.0 %
Return on average assets   0.87 %   1.13 % -23.0 %       0.85 %   1.66 % -48.8 %
Return on average equity   8.88 %   10.42 % -14.8 %       8.46 %   15.09 % -43.9 %
                 
Non-GAAP Measures                
Adjusted net income $ 2,643   $ 3,840   -31.2 %     $ 4,754   $ 8,783   -45.9 %
Adjusted diluted EPS   0.37     0.53   -30.2 %       0.67     1.21   -44.6 %
Adjusted return on average assets   0.81 %   1.16 % -30.2 %       0.78 %   1.50 % -48.0 %
Adjusted pre-tax, pre-provision income   3,223     4,717   -31.7 %       5,754     10,900   -47.2 %
                 

“We had very strong loan growth this quarter of $45 million, which is in addition to the $28 million in growth we achieved in Q1,” said Mark A. Klein, Chairman, President, and CEO of SB Financial. “For the first half of 2022 we have grown our loan balances by 8.9 percent over 2021 year end. This growth was across all categories and we had positive growth from nearly all of our regions. The prime rate increases coupled with the loan growth resulted in interest income increasing over 11 percent from the linked quarter.”

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, was down 9.1 percent from the second quarter of 2021, and flat from the linked quarter.

  • Net interest income was up from the year-ago quarter by 4.8 percent, and up 13.2 percent from the linked quarter.
  • Net interest margin on a fully taxable equivalent basis (FTE) was up from both year-ago and linked quarters by 23 and 49 basis points, respectively, as loan balances were up $44.9 million from the linked quarter. Net of PPP, our net interest margin is higher by 34 basis points compared to the prior year.   
  • Noninterest income was down 29 and 19 percent from the year ago and linked quarters, respectively, due to lower mortgage volume and OMSR recapture. 

Mortgage Loan Business

Mortgage loan originations for the second quarter of 2022 were $95.5 million, down $69.4 million, or 42.1 percent, from the year-ago quarter; likewise, total sales of originated loans were $49.9 million, down $69.1 million, or 58.1 percent.   For the first six months of 2022, SB Financial had total volume of $192.8 million, of which $141.4 million (73 percent) was new purchase/construction lending, $33.0 million was external refinance (17 percent), and the remaining $18.4 million (10 percent) was internal refinance.

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.8 million for the second quarter of 2022, compared to $4.0 million for the year-ago quarter. The mortgage servicing valuation adjustment for the second quarter of 2022 was a positive $0.2 million, compared to a negative adjustment of $0.1 million for the second quarter of 2021. For the first six months of 2022, the recapture of servicing rights was $1.1 million compared to a recapture of $2.6 million for the prior year six months. The aggregate servicing valuation impairment ended the quarter at $0.3 million.   The servicing portfolio at June 30, 2022, was $1.37 billion, up $0.05 billion, or 3.5 percent, from $1.32 billion at June 30, 2021.

Mr. Klein noted, “With fixed rate saleable mortgage rates above 5 percent for most of the quarter, we have continued to be flexible by originating more portfolio product with a special emphasis on the Private Client segment. We continue to look for ways to improve our efficiency in the mortgage business line and are committed to adding additional originators to capture market share and balance the entire business-line ecosystem.”

Mortgage Banking          
($ in thousands) Jun. 2022 Mar. 2022 Dec. 2021 Sep. 2021 Jun. 2021
Mortgage originations $ 95,454   $ 97,394   $ 126,611   $ 152,623   $ 164,883  
Mortgage sales   49,915     72,154     110,543     123,083     119,064  
Mortgage servicing portfolio   1,369,732     1,375,554     1,362,962     1,341,439     1,323,804  
Mortgage servicing rights   13,408     13,135     12,034     11,194     10,678  
           
           
Mortgage servicing revenue          
Loan servicing fees   863     861     850     850     830  
OMSR amortization   (496 )   (547 )   (807 )   (943 )   (948 )
Net administrative fees   367     314     43     (93 )   (118 )
OMSR valuation adjustment   239     890     581     248     (99 )
Net loan servicing fees   606     1,204     624     155     (217 )
Gain on sale of mortgages   1,196     1,676     3,194     3,947     4,255  
Mortgage banking revenue, net $ 1,802   $ 2,880   $ 3,818   $ 4,102   $ 4,038  
           

Noninterest Income and Noninterest Expense

SB Financial’s noninterest income for the quarter was down from the prior year and the linked quarter by 29 and 19 percent, respectively. Gain on sale yields on mortgage loan sales were down over 100 basis points from the prior year and the total dollars of sales were down over $69 million. Wealth management revenue was flat from the prior year as our retention efforts and new sales offset general market declines. SB Financial’s title agency, Peak Title, continued to transition to serving all of the Company’s needs by increasing commercial volume and with our new market expansions; as a result, revenue was up 31 percent compared to the prior year.  

For the second quarter of 2022, noninterest expense of $10.8 million was down $0.3 million or 2.5 percent compared to the prior year. Decreased mortgage volume has been the main driver of lower operating expenses.

Mr. Klein stated, “We are committed to lowering our operating costs in both the Mortgage and Retail business lines to reflect not only lower volumes but also the change in consumer behavior of a more robust adoption of digital banking solutions.”

Noninterest Income / Noninterest Expense        
($ in thousands, except ratios) Jun. 2022 Mar. 2022 Dec. 2021 Sep. 2021 Jun. 2021
Noninterest Income (NII) $ 4,673   $ 5,802   $ 6,589   $ 6,649   $ 6,537  
NII / Total Revenue   32.8 %   40.6 %   42.1 %   39.9 %   41.7 %
NII / Average Assets   1.4 %   1.7 %   2.0 %   2.0 %   2.0 %
Total Revenue Growth   -9.1 %   -46.9 %   -13.7 %   -15.3 %   -10.3 %
           
Noninterest Expense (NIE) $ 10,802   $ 10,859   $ 11,567   $ 11,256   $ 11,076  
Efficiency Ratio   75.6 %   75.9 %   73.7 %   67.4 %   70.5 %
NIE / Average Assets   3.3 %   3.2 %   3.5 %   3.4 %   3.3 %
Net Noninterest Expense/Avg. Assets   -1.9 %   -1.5 %   -1.5 %   -1.4 %   -1.4 %
Total Expense Growth   -2.5 %   -0.5 %   8.3 %   -0.7 %   -5.0 %
           

Balance Sheet

Total assets as of June 30, 2022, were $1.29 billion, down $0.02 billion, or 1.4 percent, from the year ago quarter due to declining deposit levels as the consumer began to put their excess liquidity to use in the economy. Total shareholders’ equity as of June 30, 2022, was $124.6 million, down 13.5 percent from a year ago due to the valuation adjustment on the Company’s bond portfolio. Absent that negative impact, equity increased $3.2 million or 2.3 percent. SB Financial bought back 94,211 shares of our stock in the quarter at an average price of $18.08 or 122 percent of tangible book value.  

Total loans held for investment were $895.6 million at June 30, 2022, up $45.1 million, or 5.3 percent, from June 30, 2021. Excluding PPP activity from both years, loan balances were up $79.3 million, or 9.7 percent.

The investment portfolio of $271.5 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 21.0 percent of assets at June 30, 2022, and was up 25.1 percent from the year-ago period. Deposit balances of $1.07 billion at June 30, 2022, decreased by $0.02 billion, or 1.8 percent, since June 30, 2021.

Mr. Klein continued, “Loan growth from the linked quarter met and exceeded our expectations and we remain very positive about the loan pipelines in all of our markets.   The consumer and our small business clients began to utilize their liquidity as we saw deposit and cash levels decline this quarter.”

Loan Balances            
($ in thousands, except ratios) Jun. 2022 Mar. 2022 Dec. 2021 Sep. 2021 Jun. 2021 Annual
Growth
Commercial $ 127,711   $ 124,857   $ 122,373   $ 138,085   $ 149,998   $ (22,287 )
% of Total   14.3 %   14.7 %   14.9 %   16.3 %   17.6 %   -14.9 %
Commercial RE   404,260     400,101     381,387     387,858     389,287     14,973  
% of Total   45.1 %   47.0 %   46.4 %   45.8 %   45.8 %   3.8 %
Agriculture   60,586     55,741     57,473     57,374     50,895     9,691  
% of Total   6.8 %   6.6 %   7.0 %   6.8 %   6.0 %   19.0 %
Residential RE   241,614     214,015     206,324     207,571     203,294     38,320  
% of Total   27.0 %   25.2 %   25.1 %   24.5 %   23.9 %   18.8 %
Consumer & Other   61,440     55,957     55,157     55,660     57,039     4,401  
% of Total   6.9 %   6.6 %   6.7 %   6.6 %   6.7 %   7.7 %
Total Loans $ 895,611   $ 850,671   $ 822,714   $ 846,548   $ 850,513   $ 45,098  
Total Growth Percentage           5.3 %
             
             
Deposit Balances            
($ in thousands, except ratios) Jun. 2022 Mar. 2022 Dec. 2021 Sep. 2021 Jun. 2021 Annual
Growth
Non-Int DDA $ 239,676   $ 252,273   $ 247,044   $ 258,857   $ 240,572   $ (896 )
% of Total   22.4 %   22.2 %   22.2 %   23.3 %   22.0 %   -0.4 %
Interest DDA   198,286     211,152     195,464     189,130     187,023     11,263  
% of Total   18.5 %   18.6 %   17.6 %   17.0 %   17.1 %   6.0 %
Savings   215,285     236,394     237,571     246,414     235,231     (19,946 )
% of Total   20.1 %   20.8 %   21.3 %   22.2 %   21.6 %   -8.5 %
Money Market   276,274     289,699     276,462     258,741     255,512     20,762  
% of Total   25.8 %   25.5 %   24.8 %   23.3 %   23.4 %   8.1 %
Time Deposits   142,258     148,553     156,504     158,518     172,696     (30,438 )
% of Total   13.3 %   13.1 %   14.1 %   14.3 %   15.8 %   -17.6 %
Total Deposits $ 1,071,779   $ 1,138,071   $ 1,113,045   $ 1,111,660   $ 1,091,034   $ (19,255 )
Total Growth Percentage           -1.8 %
             

Asset Quality

SB Financial reported nonperforming assets of $5.4 million as of June 30, 2022, down $0.6 million or 9.5 percent from the year-ago quarter. The Company took minimal charge-offs in the quarter, and for the year, had just $4,000 in net charge-offs. The coverage of problem loans by the loan loss allowance was at 290 percent at June 30, 2022.

Nonperforming Assets
($ in thousands, except ratios)
Jun. 2022 Mar. 2022 Dec. 2021 Sep. 2021 Jun. 2021 Annual
Change
Commercial & Agriculture $ 140   $ 142   $ 143   $ 144   $ 375   $ (235 )
% of Total Com./Ag. loans   0.07 %   0.08 %   0.08 %   0.07 %   0.19 %   -62.7 %
Commercial RE   359     544     554     566     1,026     (667 )
% of Total CRE loans   0.09 %   0.14 %   0.15 %   0.15 %   0.26 %   -65.0 %
Residential RE   3,176     3,198     2,484     2,056     1,751     1,425  
% of Total Res. RE loans   1.31 %   1.49 %   1.20 %   0.99 %   0.86 %   81.4 %
Consumer & Other   323     409     471     422     463     (140 )
% of Total Con./Oth. loans   0.53 %   0.73 %   0.85 %   0.76 %   0.81 %   -30.2 %
Total Nonaccruing Loans   3,998     4,293     3,652     3,188     3,615     383  
% of Total loans   0.45 %   0.50 %   0.44 %   0.38 %   0.43 %   10.6 %
Accruing Restructured Loans   683     762     725     805     758     (75 )
Total Change (%)             -9.9 %
Total Nonaccruing & Restructured Loans   4,681     5,055     4,377     3,993     4,373     308  
% of Total loans   0.52 %   0.59 %   0.53 %   0.47 %   0.51 %   7.0 %
Foreclosed Assets and Other Assets   730     527     2,104     1,601     1,603     (873 )
Total Change (%)             -54.5 %
Total Nonperforming Assets $ 5,411   $ 5,582   $ 6,481   $ 5,594   $ 5,976   $ (565 )
% of Total assets   0.42 %   0.42 %   0.49 %   0.42 %   0.46 %   -9.5 %
             

Webcast and Conference Call

The Company will hold a related conference call and webcast on July 26, 2022, 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 23 offices; 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 24 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 title opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.

In April 2022, SB Financial was named to the Keefe, Bruyette & Woods, Inc. “Bank Honor Roll” of superior performers that consistently reported increases in earnings per share over the last decade. The honor roll review determined that just 17 banks in the U.S., including SB Financial, or five percent of all banks screened, qualified for inclusion.

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)
                           
          June   March   December   September   June
      ($ in thousands)     2022       2022       2021       2021       2021  
                           
ASSETS                    
  Cash and due from banks   $ 29,567     $ 130,003     $ 149,511     $ 138,015     $ 154,993  
  Interest bearing time deposits     1,691       1,894       2,643       2,651       2,906  
  Available-for-sale securities     266,162       265,311       263,259       248,815       211,756  
  Loans held for sale     4,242       4,737       7,472       10,335       8,731  
  Loans, net of unearned income     895,611       850,671       822,714       846,548       850,513  
  Allowance for loan losses     (13,801 )     (13,804 )     (13,805 )     (13,812 )     (13,306 )
  Premises and equipment, net     23,122       23,039       23,212       23,874       24,343  
  Federal Reserve and FHLB Stock, at cost     5,303       5,303       5,303       5,303       5,303  
  Foreclosed assets and other assets     730       527       2,104       1,601       1,603  
  Interest receivable     3,256       2,815       2,920       2,954       3,000  
  Goodwill     23,239       23,239       23,191       22,091       22,091  
  Cash value of life insurance     28,556       17,932       17,867       17,795       17,721  
  Mortgage servicing rights     13,408       13,135       12,034       11,194       10,678  
  Other assets     12,886       10,328       12,430       12,361       12,175  
                           
      Total assets   $ 1,293,972     $ 1,335,130     $ 1,330,855     $ 1,329,725     $ 1,312,507  
                           
                           
                           
LIABILITIES AND SHAREHOLDERS’ EQUITY                    
  Deposits                    
    Non interest bearing demand   $ 239,676     $ 252,273     $ 247,044     $ 258,857     $ 240,572  
    Interest bearing demand     198,286       211,152       195,464       189,130       187,023  
    Savings     215,285       236,394       237,571       246,414       235,231  
    Money market     276,274       289,699       276,462       258,741       255,512  
    Time deposits     142,258       148,553       156,504       158,518       172,696  
                           
      Total deposits     1,071,779       1,138,071       1,113,045       1,111,660       1,091,034  
                           
  Short-term borrowings     30,772       19,035       15,320       20,771       25,096  
  Federal Home Loan Bank advances     25,000       5,500       5,500       5,500       5,500  
  Trust preferred securities     10,310       10,310       10,310       10,310       10,310  
  Subordinated debt net of issuance costs     19,570       19,558       19,546       19,534       19,522  
  Interest payable     307       536       299       576       417  
  Other liabilities     11,678       9,483       21,906       17,082       16,611  
                           
      Total liabilities     1,169,416       1,202,493       1,185,926       1,185,433       1,168,490  
                           
  Shareholders’ Equity                    
    Common stock     61,319       61,319       54,463       54,463       54,463  
    Additional paid-in capital     15,069       14,872       14,944       14,875       14,906  
    Retained earnings     96,809       94,833       99,716       97,183       93,851  
    Accumulated other comprehensive income (loss)     (22,210 )     (13,659 )     (1,845 )     (699 )     499  
    Treasury stock     (26,431 )     (24,728 )     (22,349 )     (21,530 )     (19,702 )
                           
      Total shareholders’ equity     124,556       132,637       144,929       144,292       144,017  
                           
      Total liabilities and shareholders’ equity $ 1,293,972     $ 1,335,130     $ 1,330,855     $ 1,329,725     $ 1,312,507  
                           
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME – (Unaudited)
                                 
($ in thousands, except per share & ratios)   At and for the Three Months Ended   Six Months Ended
                                 
        June   March   December   September   June   June   June
Interest income      2022       2022       2021       2021       2021       2022       2021  
  Loans                            
  Taxable   $ 8,880     $ 8,052     $ 8,889     $ 9,948     $ 9,196     $ 16,932     $ 19,122  
  Tax exempt     73       61       59       52       47       134       95  
  Securities                            
  Taxable     1,469       1,235       969       939       835       2,704       1,478  
  Tax exempt     52       47       86       94       85       99       173  
    Total interest income     10,474       9,395       10,003       11,033       10,163       19,869       20,868  
                                 
Interest expense                            
  Deposits     567       618       640       709       818       1,185       1,780  
  Repurchase agreements & other     11       13       7       12       12       24       23  
  Federal Home Loan Bank advances   38       39       41       40       51       77       107  
  Trust preferred securities     71       53       49       49       50       124       101  
  Subordinated debt     194       195       188       199       75       389       75  
    Total interest expense     881       918       925       1,009       1,006       1,799       2,086  
                                 
Net interest income     9,593       8,477       9,078       10,024       9,157       18,070       18,782  
  Provision for loan losses                       300                   750  
                                 
Net interest income after provision for loan losses
    9,593       8,477       9,078       9,724       9,157       18,070       18,032  
                                 
Noninterest income                            
  Wealth management fees     936       955       988       959       955       1,891       1,867  
  Customer service fees     860       794       827       812       820       1,654       1,578  
  Gain on sale of mtg. loans & OMSR   1,196       1,676       3,194       3,947       4,255       2,872       10,114  
  Mortgage loan servicing fees, net     606       1,204       624       155       (217 )     1,810       2,161  
  Gain on sale of non-mortgage loans   167       169       44       52       45       336       62  
  Title insurance revenue     697       602       528       508       532       1,299       1,053  
  Gain (loss) on sale of assets           55       1       1       2       55        
  Other     211       347       383       215       145       558       624  
    Total noninterest income     4,673       5,802       6,589       6,649       6,537       10,475       17,459  
                                 
Noninterest expense                            
  Salaries and employee benefits     6,418       6,189       6,648       6,689       6,881       12,607       13,501  
  Net occupancy expense     719       742       846       714       748       1,461       1,488  
  Equipment expense     827       854       899       872       778       1,681       1,510  
  Data processing fees     643       576       721       671       653       1,219       1,187  
  Professional fees     760       950       872       817       574       1,710       1,338  
  Marketing expense     222       231       228       201       220       453       355  
  Telephone and communication expense     105       111       148       140       139       216       293  
  Postage and delivery expense     110       116       106       100       97       226       208  
  State, local and other taxes     277       278       288       286       278       555       601  
  Employee expense     175       136       163       186       161       311       314  
  Other expenses     546       676       648       580       547       1,222       1,190  
    Total noninterest expense     10,802       10,859       11,567       11,256       11,076       21,661       21,985  
                                 
                                 
Income before income tax expense     3,464       3,420       4,100       5,117       4,618       6,884       13,506  
  Income tax expense     630       607       768       1,014       857       1,237       2,664  
                                 
Net income   $ 2,834     $ 2,813     $ 3,332     $ 4,103     $ 3,761     $ 5,647     $ 10,842  
                                 
Common share data:                            
  Basic earnings per common share   $ 0.40     $ 0.40     $ 0.49     $ 0.59     $ 0.53     $ 0.80     $ 1.50  
  Diluted earnings per common share $ 0.40     $ 0.40     $ 0.49     $ 0.58     $ 0.52     $ 0.79     $ 1.49  
                                 
Average shares outstanding (in thousands):                            
  Basic:     7,075       7,035       6,906       6,966       7,148       7,055       7,232  
  Diluted:     7,149       7,100       6,970       7,017       7,200       7,116       7,256  
                                 
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS – (Unaudited)
                             
($ in thousands, except per share & ratios) At and for the Three Months Ended   Six Months Ended
    June   March   December   September   June   June   June
SUMMARY OF OPERATIONS     2022       2022       2021       2021       2021       2022       2021  
                             
Net interest income   $ 9,593     $ 8,477     $ 9,078     $ 10,024     $ 9,157     $ 18,070     $ 18,782  
Tax-equivalent adjustment     33       29       39       39       35       62       71  
Tax-equivalent net interest income     9,626       8,506       9,117       10,063       9,192       18,132       18,853  
Provision for loan loss                       300                   750  
Noninterest income     4,673       5,802       6,589       6,649       6,537       10,475       17,459  
Total operating revenue     14,266       14,279       15,667       16,673       15,694       28,545       36,241  
Noninterest expense     10,802       10,859       11,567       11,256       11,076       21,661       21,985  
Pre-tax pre-provision income     3,464       3,420       4,100       5,417       4,618       6,884       14,256  
Pretax income     3,464       3,420       4,100       5,117       4,618       6,884       13,506  
Net income     2,834       2,813       3,332       4,103       3,761       5,647       10,842  
                             
PER SHARE INFORMATION:                            
Basic earnings per share (EPS)     0.40       0.40       0.49       0.59       0.53       0.80       1.50  
Diluted earnings per share     0.40       0.40       0.49       0.58       0.52       0.79       1.49  
Common dividends     0.120       0.115       0.115       0.110       0.110       0.235       0.215  
Book value per common share     17.75       18.65       21.05       20.83       20.49       17.75       20.49  
Tangible book value per common share (TBV)     14.36       15.31       17.60       17.55       17.25       14.36       17.25  
Market price per common share     17.26       19.91       19.67       18.18       18.50       17.26       18.50  
Market price to TBV     120.2 %     130.1 %     111.8 %     103.6 %     107.2 %     120.2 %     107.2 %
Market price to trailing 12 month EPS     9.3       10.0       7.7       6.7       6.5       9.3       6.5  
                             
PERFORMANCE RATIOS:                            
Return on average assets (ROAA)     0.87 %     0.83 %     0.99 %     1.23 %     1.13 %     0.85 %     1.66 %
Pre-tax pre-provision ROAA     1.06 %     1.01 %     1.22 %     1.63 %     1.39 %     1.11 %     2.32 %
Return on average equity     8.89 %     8.08 %     9.21 %     11.35 %     10.42 %     8.46 %     15.09 %
Return on average tangible equity     10.93 %     9.75 %     10.92 %     13.47 %     12.37 %     10.30 %     17.92 %
Efficiency ratio     75.60 %     75.93 %     73.72 %     67.40 %     70.46 %     75.76 %     60.56 %
Earning asset yield     3.45 %     2.96 %     3.17 %     3.25 %     3.56 %     3.20 %     3.40 %
Cost of interest bearing liabilities     0.39 %     0.39 %     0.40 %     0.44 %     0.44 %     0.38 %     0.47 %
Net interest margin     3.15 %     2.67 %     2.87 %     3.20 %     2.93 %     2.91 %     3.06 %
Tax equivalent effect     0.01 %     0.01 %     0.02 %     0.01 %     0.01 %     0.01 %     0.01 %
Net interest margin, tax equivalent     3.16 %     2.68 %     2.89 %     3.21 %     2.94 %     2.92 %     3.07 %
Non interest income/Average assets     1.43 %     1.72 %     1.96 %     1.99 %     1.97 %     1.58 %     2.67 %
Non interest expense/Average assets     3.31 %     3.22 %     3.45 %     3.38 %     3.33 %     3.26 %     3.37 %
Net noninterest expense/Average assets     -1.88 %     -1.50 %     -1.48 %     -1.38 %     -1.37 %     -1.68 %     -0.70 %
                             
ASSET QUALITY RATIOS:                            
Gross charge-offs     9       9       34       24       26       18       78  
Recoveries     6       8       27       230       6       14       60  
Net charge-offs     3       1       7       (206 )     20       4       18  
Nonaccruing loans/Total loans     0.45 %     0.50 %     0.44 %     0.38 %     0.43 %     0.45 %     0.43 %
Nonperforming loans/Total loans     0.52 %     0.59 %     0.53 %     0.47 %     0.51 %     0.52 %     0.51 %
Nonperforming assets/Loans & OREO     0.60 %     0.66 %     0.79 %     0.66 %     0.70 %     0.60 %     0.70 %
Nonperforming assets/Total assets     0.42 %     0.42 %     0.49 %     0.42 %     0.46 %     0.42 %     0.46 %
Allowance for loan loss/Nonperforming loans   294.83 %     273.08 %     315.40 %     345.91 %     304.28 %     294.83 %     304.28 %
Allowance for loan loss/Total loans     1.54 %     1.62 %     1.68 %     1.63 %     1.56 %     1.54 %     1.56 %
Net loan charge-offs/Average loans (ann.)     0.00 %     0.00 %     0.00 %     (0.10 %)     0.01 %     0.00 %     0.00 %
                             
CAPITAL & LIQUIDITY RATIOS:                            
Loans/ Deposits     83.56 %     74.75 %     73.92 %     76.15 %     77.95 %     83.56 %     77.95 %
Equity/ Assets     9.63 %     9.93 %     10.89 %     10.85 %     10.97 %     9.63 %     10.97 %
Tangible equity/Tangible assets     7.93 %     8.30 %     9.27 %     9.30 %     9.41 %     7.93 %     9.41 %
Common equity tier 1 ratio (Bank)     14.08 %     13.71 %     13.94 %     13.23 %     13.11 %     14.08 %     13.11 %
                             
END OF PERIOD BALANCES                            
Total assets     1,293,972       1,335,130       1,330,855       1,329,725       1,312,507       1,293,972       1,312,507  
Total loans     895,611       850,671       822,714       846,548       850,513       895,611       850,513  
Deposits     1,071,779       1,138,071       1,113,045       1,111,660       1,091,034       1,071,779       1,091,034  
Stockholders equity     124,556       132,637       144,929       144,292       144,017       124,556       144,017  
Goodwill and intangibles     23,804       23,804       23,774       22,692       22,710       23,804       22,710  
Tangible equity     100,752       108,833       121,155       121,600       121,307       100,752       121,307  
Mortgage servicing portfolio     1,369,732       1,375,554       1,362,962       1,341,439       1,323,804       1,369,732       1,323,804  
Wealth/Brokerage assets under care     500,487       560,698       618,279       588,319       600,904       500,487       600,904  
Total assets under care     3,164,191       3,271,382       3,312,096       3,259,483       3,237,215       3,164,191       3,237,215  
Full-time equivalent employees     267       256       269       264       256       267       256  
Period end common shares outstanding     7,017       7,111       6,884       6,927       7,027       7,017       7,027  
Market capitalization (all)     121,105       141,575       135,415       125,935       130,000       121,105       130,000  
                             
AVERAGE BALANCES                            
Total assets     1,305,815       1,350,982       1,342,202       1,333,369       1,329,348       1,328,216       1,306,355  
Total earning assets     1,216,124       1,270,218       1,263,431       1,253,722       1,251,213       1,243,017       1,227,359  
Total loans     870,439       832,825       845,078       856,486       853,794       851,736       858,321  
Deposits     1,108,890       1,134,234       1,123,843       1,109,491       1,115,186       1,121,373       1,094,269  
Stockholders equity     127,519       139,214       144,749       144,565       144,315       133,471       143,709  
Goodwill and intangibles     23,796       23,801       22,701       22,701       22,718       23,798       22,727  
Tangible equity     103,723       115,413       122,048       121,864       121,597       109,673       120,982  
Average basic shares outstanding     7,075       7,035       6,906       6,966       7,148       7,055       7,232  
Average diluted shares outstanding     7,149       7,100       6,970       7,017       7,200       7,116       7,256  
                             

SB FINANCIAL GROUP, INC.  
  Rate Volume Analysis – (Unaudited)  
  For the Three and Six Months Ended June 30, 2022 and 2021  
               
  ($ in thousands)   Three Months Ended Jun. 30, 2022     Three Months Ended Jun. 30, 2021  
      Average   Average     Average   Average  
Assets   Balance Interest Rate     Balance Interest Rate  
                       
  Taxable securities/cash   $ 337,226   $ 1,469 1.74 %     $ 390,036   $ 835 0.86 %  
  Nontaxable securities     8,459     52 2.46 %       7,383     85 4.61 %  
  Loans, net     870,439     8,953 4.11 %       853,794     9,243 4.33 %  
                       
  Total earning assets     1,216,124     10,474 3.45 %       1,251,213     10,163 3.25 %  
                       
  Cash and due from banks     7,177             6,992        
  Allowance for loan losses     (13,803 )           (13,565 )      
  Premises and equipment     23,741             23,988        
  Other assets     72,576             60,720        
                       
  Total assets   $ 1,305,815           $ 1,329,348        
                       
Liabilities                    
  Savings, MMDA and interest bearing demand $ 713,367   $ 353 0.20 %     $ 672,803   $ 464 0.28 %  
  Time deposits     145,694     214 0.59 %       183,138     354 0.77 %  
  Repurchase agreements & other     18,671     11 0.24 %       23,607     12 0.20 %  
  Advances from Federal Home Loan Bank     3,989     38 3.81 %       7,066     51 2.89 %  
  Trust preferred securities     10,310     71 2.75 %       10,310     50 1.94 %  
  Subordinated debt     19,564     194 3.97 %       9,880     75 0.00 %  
                       
  Total interest bearing liabilities     911,595     881 0.39 %       906,804     1,006 0.44 %  
                       
  Non interest bearing demand     249,829             259,245        
                       
  Total funding     1,161,424     0.30 %       1,166,049     0.35 %  
                       
  Other liabilities     16,872             18,984        
                       
  Total liabilities     1,178,296             1,185,033        
                       
  Equity     127,519             144,315        
                       
  Total liabilities and equity   $ 1,305,815           $ 1,329,348        
                       
  Net interest income     $ 9,593         $ 9,157    
                       
  Net interest income as a percent of average interest-earning assets – GAAP measure       3.155 %         2.93 %  
                       
  Net interest income as a percent of average interest-earning assets – non GAAP 3.164 %         2.94 %  
  – Computed on a fully tax equivalent (FTE) basis                
                       
      Six Months Ended Jun. 30, 2022     Six Months Ended Jun. 30, 2021  
      Average   Average     Average   Average  
Assets   Balance Interest Rate     Balance Interest Rate  
                       
  Taxable securities/cash   $ 383,272   $ 2,704 1.41 %     $ 361,566   $ 1,478 0.82 %  
  Nontaxable securities     8,009     99 2.47 %       7,472     173 4.63 %  
  Loans, net     851,736     17,066 4.01 %       858,321     19,217 4.48 %  
                       
  Total earning assets     1,243,017     19,869 3.20 %       1,227,359     20,868 3.40 %  
                       
  Cash and due from banks     7,593             7,769        
  Allowance for loan losses     (13,805 )           (13,206 )      
  Premises and equipment     24,522             23,743        
  Other assets     66,889             60,690        
                       
  Total assets   $ 1,328,216           $ 1,306,355        
                       
Liabilities                    
  Savings, MMDA and interest bearing demand $ 723,176   $ 751 0.21 %     $ 643,962   $ 972 0.30 %  
  Time deposits     156,268     435 0.56 %       194,955     808 0.83 %  
  Repurchase agreements & Other     21,876     24 0.22 %       23,869     23 0.19 %  
  Advances from Federal Home Loan Bank     4,740     77 3.25 %       7,530     107 2.84 %  
  Trust preferred securities     10,310     124 2.41 %       10,310     101 1.96 %  
  Subordinated debt     19,558     389 3.98 %       5,646     75 2.66 %  
                       
  Total interest bearing liabilities     935,928     1,799 0.38 %       886,272     2,086 0.47 %  
                       
  Non interest bearing demand     241,929     0.31 %       255,352     0.37 %  
                       
  Total funding     1,177,857             1,141,624        
                       
  Other liabilities     16,888             21,022        
                       
  Total liabilities     1,194,745             1,162,646        
                       
  Equity     133,471             143,709        
                       
  Total liabilities and equity   $ 1,328,216           $ 1,306,355        
                       
  Net interest income     $ 18,070         $ 18,782    
                       
  Net interest income as a percent of average interest-earning assets – GAAP measure       2.91 %         3.06 %  
                       
  Net interest income as a percent of average interest-earning assets – non GAAP 2.92 %         3.07 %  
  – Computed on a fully tax equivalent (FTE) basis                
                       

Non-GAAP reconciliation   Three Months Ended   Six Months Ended
                 
($ in thousands, except per share & ratios)   Jun. 30, 2022   Jun. 30, 2021   Jun. 30, 2022   Jun. 30, 2021
                 
Total Operating Revenue   $ 14,266     $ 15,694     $ 28,545     $ 36,241  
Adjustment to (deduct)/add OMSR recapture/impairment*   (239 )     99       (1,128 )     (2,606 )
Adjusted Total Operating Revenue     14,027       15,793       27,417       33,635  
                 
Income before Income Taxes     3,464       4,618       6,884       13,506  
Adjustment for OMSR     (239 )     99       (1,128 )     (2,606 )
Adjusted Income before Income Taxes     3,225       4,717       5,756       10,900  
                 
Provision for Income Taxes     630       857       1,237       2,664  
Adjustment for OMSR **     (50 )     21       (237 )     (547 )
Adjusted Provision for Income Taxes     580       878       1,000       2,118  
                 
Net Income     2,834       3,761       5,647       10,842  
Adjustment for OMSR     (189 )     79       (891 )     (2,059 )
Adjusted Net Income     2,645       3,840       4,756       8,783  
                 
Diluted Earnings per Share     0.40       0.52       0.79       1.49  
Adjustment for OMSR     (0.03 )     0.01       (0.13 )     (0.28 )
Adjusted Diluted Earnings per Share   $ 0.37     $ 0.53     $ 0.67     $ 1.21  
                 
Return on Average Assets     0.87 %     1.13 %     0.85 %     1.66 %
Adjustment for OMSR     -0.06 %     0.02 %     -0.07 %     -0.16 %
Adjusted Return on Average Assets     0.81 %     1.15 %     0.78 %     1.50 %
                 
*valuation adjustment to the Company’s mortgage servicing rights
                 
**tax effect is calculated using a 21% statutory federal corporate income tax rate

 

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More