SB Financial Group Announces Third Quarter 2020 Results
DEFIANCE, Ohio, Oct. 29, 2020 /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 third quarter and nine months ended September 30, 2020.
Third quarter 2020 highlights over prior-year third quarter include:
- Net income of $5.3 million up $1.5 million or 39.6 percent; diluted earnings per share ("EPS") of $0.69 up $0.21 per share or 43.8 percent
- Adjusted net income, excluding for the impact of the Originated Mortgage Servicing Rights ("OMSR") recapture of $0.3 million, of $5.0 million, with adjusted EPS of $0.65
- Mortgage origination volume of $200.2 million, an increase of $42.2 million, or 26.7 percent
- Pre-tax, pre-provision income of $8.3 million up $2.5 million or 43.2 percent
The nine months ended September 30, 2020, highlights over the prior-year nine months include:
- Net income of $9.6 million; diluted EPS of $1.25
- Adjusted net income, excluding the impact of OMSR and merger costs of $3.3 million after- tax, rose to $12.9 million, up $3.2 million or 32.9 percent, with adjusted EPS of $1.67
- Return on Average Assets ("ROA") of 1.12 percent; adjusted ROA of 1.41 percent
Third quarter 2020 trailing twelve-month highlights include:
- Loan growth of $62.5 million, or 7.6 percent, which includes Paycheck Protection Program ("PPP") loan balances of $82.1 million and loans acquired in the Edon acquisition of $15.7 million.
- Deposit growth of $166.1 million, or 19.6 percent, driven by PPP balances and the Edon acquisition
- Mortgage origination volume of $662.7 million; servicing portfolio of $1.29 billion, which is up $140.0 million, or 12.1 percent
Highlights |
Three Months Ended |
Nine Months Ended |
|||||
($ in thousands, except per share & ratios) |
Sep. 2020 |
Sep. 2019 |
% Change |
Sep. 2020 |
Sep. 2019 |
% Change |
|
Operating revenue |
$ 19,677 |
$ 14,424 |
36.4% |
$ 47,873 |
$ 38,287 |
25.0% |
|
Interest income |
10,807 |
11,546 |
-6.4% |
32,046 |
33,195 |
-3.5% |
|
Interest expense |
1,548 |
2,488 |
-37.8% |
5,367 |
6,965 |
-22.9% |
|
Net interest income |
9,259 |
9,058 |
2.2% |
26,679 |
26,230 |
1.7% |
|
Provision for loan losses |
1,800 |
300 |
500.0% |
3,700 |
500 |
640.0% |
|
Noninterest income |
10,418 |
5,366 |
94.1% |
21,194 |
12,057 |
75.8% |
|
Noninterest expense |
11,335 |
9,500 |
19.3% |
32,403 |
27,234 |
19.0% |
|
Net income |
5,250 |
3,762 |
39.6% |
9,586 |
8,615 |
11.3% |
|
Earnings per diluted share |
0.69 |
0.48 |
43.8% |
1.25 |
1.08 |
15.7% |
|
Return on average assets |
1.73% |
1.44% |
20.1% |
1.12% |
1.13% |
-0.9% |
|
Return on average equity |
15.01% |
11.24% |
33.5% |
9.74% |
8.67% |
12.3% |
|
Non-GAAP Measures |
|||||||
Adjusted net income |
$ 4,992 |
$ 3,762 |
32.7% |
$ 12,916 |
$ 9,720 |
32.9% |
|
Adjusted diluted EPS |
0.65 |
0.48 |
35.4% |
1.67 |
1.22 |
36.9% |
|
Adjusted return on average assets |
1.64% |
1.44% |
13.9% |
1.41% |
1.23% |
14.6% |
|
Adjusted pre-tax, pre-provision income |
8,016 |
4,924 |
62.8% |
19,685 |
12,451 |
58.1% |
"Mortgage volume continued its strong growth in the third quarter, which resulted in our net income rising from the prior year by over 40 percent." said Mark A. Klein, Chairman, President, and CEO of SB Financial. "Our revenue diversification strategy continues to drive EPS and tangible book value growth despite the headwinds that the economy is facing in all of our markets. We continued to return capital to our shareholders in the quarter through stock buybacks and a cash dividend of nearly 15 percent of earnings."
RESULTS OF OPERATIONS
Consolidated Revenue
Total operating revenue, consisting of net interest income and noninterest income, was up 36.4 percent from the third quarter of 2019, and up 12.5 percent to the linked quarter.
- Net interest income was up 2.2 percent from the year-ago quarter, and up 4.4 percent from the linked quarter.
- Net interest margin on a fully taxable equivalent basis (FTE) was down from the year-ago quarter by 52 basis points but up 9 basis points from the linked quarter as transactional cash balances were higher and PPP loans made marginal contribution.
- Noninterest income was up 94 percent year over year and 21 percent from the linked quarter.
Mortgage Loan Business
Mortgage loan originations for the third quarter of 2020 were $200.2 million, up $42.2 million, or 26.7 percent, from the year-ago quarter. Total sales of originated loans were $166.2 million, up $40.8 million, or 32.6 percent. For the first nine months, SB Financial had total volume of $525.2 million, of which $210.2 million (40 percent) was new purchase/construction lending, $169.2 million (32 percent) was internal refinance, and the remaining $145.8 million (28 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 $7.9 million for the third quarter of 2020, compared to $2.5 million for the year-ago quarter. The mortgage servicing valuation adjustment for the third quarter of 2020 was a positive $0.3 million, compared to no adjustment for the third quarter of 2019. For the first nine months, the impairment on servicing rights was $3.0 million, compared to $1.4 million for the prior year nine months. The aggregate servicing valuation impairment ended the quarter at $4.3 million. The servicing portfolio at September 30, 2020, was $1.29 billion up $140.0 million or 12.1 percent, from $1.15 billion at September 30, 2019. Normal amortization is up 87 percent from the prior year due to higher refinance activity.
Mr. Klein noted, "Mortgage volume was steady in the quarter as we originated over $200 million in volume. In addition to strong origination levels, our pricing and hedging strategies enabled us to deliver additional mortgage banking revenue of $5.4 million or a year over year increase of over 200 percent. We were also pleased to recapture a small amount of our prior quarter's impairment on our servicing rights."
Mortgage Banking |
|||||
($ in thousands) |
Sep. 2020 |
Jun. 2020 |
Mar. 2020 |
Dec. 2019 |
Sep. 2019 |
Mortgage originations |
$ 200,158 |
$ 223,671 |
$ 101,365 |
$ 137,528 |
$ 157,947 |
Mortgage sales |
166,201 |
204,628 |
84,476 |
127,441 |
125,386 |
Mortgage servicing portfolio |
1,293,037 |
1,261,746 |
1,216,292 |
1,199,107 |
1,153,020 |
Mortgage servicing rights |
8,535 |
8,168 |
8,974 |
11,017 |
10,447 |
Mortgage servicing revenue |
|||||
Loan servicing fees |
813 |
782 |
757 |
740 |
709 |
OMSR amortization |
(1,308) |
(1,574) |
(597) |
(709) |
(701) |
Net administrative fees |
(495) |
(792) |
160 |
31 |
8 |
OMSR valuation adjustment |
326 |
(1,088) |
(2,212) |
303 |
- |
Net loan servicing fees |
(169) |
(1,880) |
(2,052) |
334 |
8 |
Gain on sale of mortgages |
8,085 |
8,119 |
1,949 |
3,048 |
2,495 |
Mortgage banking revenue, net |
$ 7,916 |
$ 6,239 |
$ (103) |
$ 3,382 |
$ 2,503 |
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 $522.4 million as of September 30, 2020, up $38.1 million or 7.9 percent compared to the prior year. For the third quarter of 2020, noninterest income as a percentage of total operating revenue was 52.9 percent. Reflective of the robust mortgage market, SB Financial's Title Agency provided revenue in the quarter of $0.5 million, up 29 percent from the prior year.
For the third quarter of 2020, noninterest expense of $11.3 million was up $1.8 million year over year or 19.3 percent reflecting a 1.9 times positive operating leverage. On a year-to-date basis, when adjusted for the Edon merger costs, noninterest expense is up 14.4 percent compared to the prior year nine-month period. Operating leverage for the year is a positive 1.3 times, which will improve to 1.7 times when the merger costs are removed.
Mr. Klein stated, "Revenue growth was up over 36 percent from the prior year compared to operating expense growing 19 percent. We had the lowest net, noninterest expense to average assets in our history this quarter and the significant positive operating leverage was key to our earnings growth. We remain optimistic that the consumer and business momentum from this quarter will continue into the fourth quarter and translate into improved loan pipelines."
Noninterest Income / Noninterest Expense |
|||||
($ in thousands, except ratios) |
Sep. 2020 |
Jun. 2020 |
Mar. 2020 |
Dec. 2019 |
Sep. 2019 |
Noninterest Income (NII) |
$ 10,418 |
$ 8,615 |
$ 2,161 |
$ 5,959 |
$ 5,366 |
NII / Total Revenue |
52.9% |
49.3% |
20.2% |
40.9% |
37.2% |
NII / Average Assets |
3.4% |
3.0% |
0.8% |
2.3% |
2.1% |
Total Revenue Growth |
36.4% |
39.6% |
-5.6% |
16.0% |
-1.2% |
Noninterest Expense (NIE) |
$ 11,335 |
$ 11,662 |
$ 9,406 |
$ 10,176 |
$ 9,500 |
Efficiency Ratio |
57.5% |
66.7% |
87.8% |
69.9% |
65.9% |
NIE / Average Assets |
3.7% |
4.0% |
3.5% |
3.9% |
3.6% |
Net Noninterest Expense/Avg. Assets |
-0.3 |
-1.0% |
-2.7% |
-1.6% |
-1.6% |
Total Expense Growth |
19.3% |
28.0% |
9.0% |
15.0% |
6.2% |
Operating Leverage |
1.9 |
1.4 |
-0.6 |
1.1 |
-0.2 |
Balance Sheet
Total assets as of September 30, 2020, were $1.22 billion, up $175.5 million, or 16.8 percent, from the year ago quarter due to the impact of the Edon acquisition and the PPP activity. Total equity as of September 30, 2020, was $141.3 million, up 5.3 percent from a year ago, and comprised 11.6 percent of total assets.
Total loans held for investment were $885.9 million at September 30, 2020, up $62.5 million, or 7.6 percent, from September 30, 2019. Commercial loans were up $71.5 million, or 49.3 percent, commercial real estate up $9.4 million or 2.6 percent and agricultural loans increasing $5.5 million or 10.5 percent. Absent the effects of the Edon acquisition and PPP loans, loan balances were down $35.4 million from the year ago quarter.
The investment portfolio of $135.6 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 11.1 percent of assets at September 30, 2020, and was up 66.0 percent from the year-ago period. Deposit balances of $1.01 billion at September 30, 2020, increased by $166.1 million, or 19.6 percent, since September 30, 2019. Growth from the prior year included $104.7 million in checking and $61.4 million in savings and time deposit balances.
Mr. Klein continued, "Asset quality was largely stable in the quarter. Our number and dollar of loans on forbearance were down 60 and 75 percent respectively from the linked quarter. We are encouraged by these trends but we also understand that further weakness is possible. To prepare for these unknowns, we decided to allocate some of our higher than expected mortgage revenue into provision this quarter. We expect to begin the PPP forgiveness process in the fourth quarter, which will help all of our 700 PPP clients who were impacted by the pandemic."
Loan Balances |
||||||
($ in thousands, except ratios) |
Sep. 2020 |
Jun. 2020 |
Mar. 2020 |
Dec. 2019 |
Sep. 2019 |
Annual |
Commercial |
$ 216,667 |
$ 222,108 |
$ 151,538 |
$ 151,018 |
$ 145,147 |
$ 71,520 |
% of Total |
24.5% |
24.6% |
18.2% |
18.3% |
17.6% |
49.3% |
Commercial RE |
371,947 |
375,450 |
378,212 |
369,962 |
362,580 |
9,367 |
% of Total |
42.0% |
41.6% |
45.5% |
44.8% |
44.0% |
2.6% |
Agriculture |
57,420 |
58,817 |
47,660 |
50,994 |
51,946 |
5,474 |
% of Total |
6.5% |
6.5% |
5.7% |
6.2% |
6.3% |
10.5% |
Residential RE |
178,393 |
184,684 |
189,738 |
189,290 |
199,036 |
-20,643 |
% of Total |
20.1% |
20.6% |
22.9% |
22.9% |
24.2% |
-10.4% |
Consumer & Other |
61,423 |
60,489 |
63,616 |
64,246 |
64,658 |
-3,235 |
% of Total |
6.9% |
6.7% |
7.7% |
7.8% |
7.9% |
-5.0% |
Total Loans |
$ 885,850 |
$ 901,548 |
$ 830,764 |
$ 825,510 |
$ 823,367 |
$ 62,483 |
Total Growth Percentage |
7.6% |
|||||
Deposit Balances |
||||||
($ in thousands, except ratios) |
Sep. 2020 |
Jun. 2020 |
Mar. 2020 |
Dec. 2019 |
Sep. 2019 |
Annual |
Non-Int DDA |
$ 225,003 |
$ 229,042 |
$ 170,920 |
$ 158,357 |
$ 152,932 |
$ 72,071 |
% of Total |
22.2% |
23.1% |
19.8% |
18.8% |
18.0% |
47.1% |
Interest DDA |
164,248 |
154,143 |
133,722 |
131,084 |
131,655 |
32,593 |
% of Total |
16.2% |
15.6% |
15.5% |
15.6% |
15.5% |
24.8% |
Savings |
169,474 |
161,182 |
138,863 |
119,359 |
121,991 |
47,483 |
% of Total |
16.7% |
16.3% |
16.0% |
14.1% |
14.3% |
38.9% |
Money Market |
204,862 |
189,380 |
169,209 |
173,666 |
173,237 |
31,625 |
% of Total |
20.2% |
19.1% |
19.6% |
20.7% |
20.4% |
18.3% |
Time Deposits |
250,428 |
256,840 |
251,177 |
257,753 |
268,139 |
(17,711) |
% of Total |
24.7% |
25.9% |
29.1% |
30.8% |
31.8% |
-6.6% |
Total Deposits |
$ 1,014,015 |
$ 990,587 |
$ 863,891 |
$ 840,219 |
$ 847,954 |
$ 166,061 |
Total Growth Percentage |
19.6% |
Asset Quality
SB Financial reported nonperforming assets of $7.3 million as of September 30, 2020, up $2.7 million from the year-ago quarter. The coverage of nonperforming loans by the loan loss allowance was at 164 percent at September 30, 2020, down from 207 percent at September 30, 2019.
Nonperforming Assets |
Annual |
|||||
($ in thousands, except ratios) |
Sep. 2020 |
Jun. 2020 |
Mar. 2020 |
Dec. 2019 |
Sep. 2019 |
|
Commercial & Agriculture |
$ 1,140 |
$ 1,204 |
$ 1,309 |
$ 1,772 |
$ 834 |
$ 306 |
% of Total Com./Ag. loans |
0.42% |
0.43% |
0.66% |
0.88% |
0.42% |
36.7% |
Commercial RE |
2,475 |
2,484 |
1,816 |
1,826 |
262 |
2,213 |
% of Total CRE loans |
0.67% |
0.66% |
0.48% |
0.49% |
0.07% |
844.7% |
Residential RE |
2,481 |
2,538 |
2,330 |
1,635 |
1,763 |
718 |
% of Total Res. RE loans |
1.39% |
1.37% |
1.23% |
0.86% |
0.89% |
40.7% |
Consumer & Other |
313 |
308 |
327 |
267 |
416 |
(103) |
% of Total Con./Oth. loans |
0.51% |
0.51% |
0.51% |
0.42% |
0.64% |
-24.8% |
Total Nonaccruing Loans |
6,409 |
6,534 |
5,782 |
5,500 |
3,275 |
3,134 |
% of Total loans |
0.72% |
0.72% |
0.70% |
0.67% |
0.40% |
95.7% |
Accruing Restructured Loans |
789 |
804 |
816 |
874 |
825 |
(36) |
Total Change (%) |
-4.4% |
|||||
Total Nonaccruing & Restructured Loans |
7,198 |
7,338 |
6,598 |
6,374 |
4,100 |
3,098 |
% of Total loans |
0.81% |
0.81% |
0.79% |
0.77% |
0.50% |
75.6% |
Foreclosed Assets |
76 |
382 |
85 |
305 |
489 |
(413) |
Total Change (%) |
-84.5% |
|||||
Total Nonperforming Assets |
$ 7,274 |
$ 7,720 |
$ 6,683 |
$ 6,679 |
$ 4,589 |
$ 2,685 |
% of Total assets |
0.60% |
0.64% |
0.61% |
0.64% |
0.44% |
58.5% |
The Company continued to provide payment relief to clients as needed, with total forbearance as of September 30, 2020 of 204 loans at $80.7 million. The detail on these deferrals; 19 commercial at $36.4 million down $106.3 million or 74.5%, 7 portfolio residential and consumer at $2.0 million down $8.6 million or 81.3 percent and 178 sold residential real estate at $42.3 million up $0.6 million or 1.4 percent.
Loans in Deferral Status |
Linked Qtr. |
|||
($ in thousands, except ratios) |
Sep. 2020 |
Jun. 2020 |
||
Total Commercial |
$ 36,366 |
$ 142,682 |
$ (106,316) |
|
Total Consumer |
28 |
350 |
(322) |
|
Total Portfolio Mortgage |
1,959 |
10,274 |
(8,315) |
|
Total Balance Sheet Deferrals |
$ 38,353 |
$ 153,306 |
$ (114,953) |
|
% of Total loans |
4.33% |
17.00% |
-12.68% |
|
Total Sold Mortgage |
$ 42,317 |
$ 41,751 |
$ 566 |
|
Commercial High Sensitivity |
||||
Portfolio Update |
Linked Qtr. |
|||
($ in thousands, except ratios) |
Sep. 2020 |
Jun. 2020 |
||
Hotel/Travel Accomodation |
$ 32,475 |
$ 32,758 |
$ (283) |
|
Food Service/Restaurant |
9,698 |
10,480 |
(782) |
|
Elder/Child Care |
7,188 |
7,302 |
(114) |
|
Arts/Entertainment/Recreation |
6,614 |
5,698 |
916 |
|
Education/Religious |
13,412 |
15,083 |
(1,671) |
|
Energy |
- |
- |
- |
|
Total |
$ 69,387 |
$ 71,321 |
$ (1,934) |
|
% of Total loans |
7.83% |
7.91% |
-0.08% |
Webcast and Conference Call
The Company will hold a related conference call and webcast on October 30, 2020, 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
[email protected]
Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
[email protected]
SB FINANCIAL GROUP, INC. |
|||||||||||||
CONSOLIDATED BALANCE SHEETS - (Unaudited) |
|||||||||||||
September |
June |
March |
December |
September |
|||||||||
($ in thousands) |
2020 |
2020 |
2020 |
2019 |
2019 |
||||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ 94,641 |
$ 85,661 |
$ 56,393 |
$ 27,064 |
$ 49,824 |
||||||||
Interest bearing time deposits |
8,956 |
10,542 |
- |
- |
- |
||||||||
Available-for-sale securities |
130,315 |
104,289 |
107,727 |
100,948 |
77,029 |
||||||||
Loans held for sale |
13,943 |
13,742 |
11,328 |
7,258 |
13,655 |
||||||||
Loans, net of unearned income |
885,850 |
901,548 |
830,764 |
825,510 |
823,367 |
||||||||
Allowance for loan losses |
(11,793) |
(10,013) |
(8,958) |
(8,755) |
(8,492) |
||||||||
Premises and equipment, net |
23,785 |
23,662 |
23,599 |
23,385 |
23,898 |
||||||||
Federal Reserve and FHLB Stock, at cost |
5,303 |
4,837 |
4,648 |
4,648 |
4,648 |
||||||||
Foreclosed assets held for sale, net |
76 |
382 |
85 |
305 |
489 |
||||||||
Interest receivable |
4,159 |
4,272 |
2,940 |
3,106 |
3,176 |
||||||||
Goodwill and other intangibles |
22,763 |
22,813 |
17,830 |
17,832 |
17,834 |
||||||||
Cash value of life insurance |
17,453 |
17,375 |
17,299 |
17,221 |
17,137 |
||||||||
Mortgage servicing rights |
8,535 |
8,168 |
8,974 |
11,017 |
10,447 |
||||||||
Other assets |
14,255 |
15,658 |
15,684 |
9,038 |
9,749 |
||||||||
Total assets |
$ 1,218,241 |
$ 1,202,936 |
$ 1,088,313 |
$ 1,038,577 |
$ 1,042,761 |
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits |
|||||||||||||
Non interest bearing demand |
$ 225,003 |
$ 229,042 |
$ 170,920 |
$ 158,357 |
$ 152,932 |
||||||||
Interest bearing demand |
164,248 |
154,143 |
133,722 |
131,084 |
131,655 |
||||||||
Savings |
169,474 |
161,182 |
138,863 |
119,359 |
121,991 |
||||||||
Money market |
204,862 |
189,380 |
169,209 |
173,666 |
173,237 |
||||||||
Time deposits |
250,428 |
256,840 |
251,177 |
257,753 |
268,139 |
||||||||
Total deposits |
1,014,015 |
990,587 |
863,891 |
840,219 |
847,954 |
||||||||
Short-term borrowings |
20,710 |
23,826 |
36,881 |
12,945 |
14,659 |
||||||||
Federal Home Loan Bank advances |
8,000 |
13,000 |
16,000 |
16,000 |
16,000 |
||||||||
Trust preferred securities |
10,310 |
10,310 |
10,310 |
10,310 |
10,310 |
||||||||
Interest payable |
946 |
929 |
1,131 |
1,191 |
1,391 |
||||||||
Other liabilities |
22,913 |
26,403 |
24,195 |
21,818 |
18,201 |
||||||||
Total liabilities |
1,076,894 |
1,065,055 |
952,408 |
902,483 |
908,515 |
||||||||
Shareholders' Equity |
|||||||||||||
Preferred stock |
- |
- |
- |
- |
13,241 |
||||||||
Common stock |
54,463 |
54,463 |
54,463 |
54,463 |
41,223 |
||||||||
Additional paid-in capital |
14,782 |
14,780 |
14,655 |
15,023 |
15,219 |
||||||||
Retained earnings |
80,012 |
75,526 |
72,641 |
72,704 |
70,184 |
||||||||
Accumulated other comprehensive income (loss) |
2,221 |
2,320 |
2,049 |
659 |
900 |
||||||||
Treasury stock |
(10,131) |
(9,208) |
(7,903) |
(6,755) |
(6,521) |
||||||||
Total shareholders' equity |
141,347 |
137,881 |
135,905 |
136,094 |
134,246 |
||||||||
Total liabilities and shareholders' equity |
$ 1,218,241 |
$ 1,202,936 |
$ 1,088,313 |
$ 1,038,577 |
$ 1,042,761 |
SB FINANCIAL GROUP, INC. |
|||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) |
|||||||||||||||||
($ in thousands, except per share & ratios) |
At and for the Three Months Ended |
Nine Months Ended |
|||||||||||||||
September |
June |
March |
December |
September |
September |
September |
|||||||||||
Interest income |
2020 |
2020 |
2020 |
2019 |
2019 |
2020 |
2019 |
||||||||||
Loans |
|||||||||||||||||
Taxable |
$ 10,179 |
$ 9,945 |
$ 9,795 |
$ 10,313 |
$ 10,607 |
$ 29,919 |
$ 30,216 |
||||||||||
Tax exempt |
47 |
59 |
79 |
83 |
82 |
185 |
217 |
||||||||||
Securities |
|||||||||||||||||
Taxable |
494 |
510 |
692 |
737 |
776 |
1,696 |
2,489 |
||||||||||
Tax exempt |
87 |
81 |
78 |
72 |
81 |
246 |
273 |
||||||||||
Total interest income |
10,807 |
10,595 |
10,644 |
11,205 |
11,546 |
32,046 |
33,195 |
||||||||||
Interest expense |
|||||||||||||||||
Deposits |
1,423 |
1,549 |
1,880 |
2,392 |
2,258 |
4,852 |
6,268 |
||||||||||
Repurchase agreements & other |
12 |
20 |
28 |
17 |
22 |
60 |
65 |
||||||||||
Federal Home Loan Bank advances |
59 |
92 |
100 |
101 |
101 |
251 |
301 |
||||||||||
Trust preferred securities |
54 |
62 |
88 |
99 |
107 |
204 |
331 |
||||||||||
Total interest expense |
1,548 |
1,723 |
2,096 |
2,609 |
2,488 |
5,367 |
6,965 |
||||||||||
Net interest income |
9,259 |
8,872 |
8,548 |
8,596 |
9,058 |
26,679 |
26,230 |
||||||||||
Provision for loan losses |
1,800 |
1,300 |
600 |
300 |
300 |
3,700 |
500 |
||||||||||
Net interest income after provision |
|||||||||||||||||
for loan losses |
7,459 |
7,572 |
7,948 |
8,296 |
8,758 |
22,979 |
25,730 |
||||||||||
Noninterest income |
|||||||||||||||||
Wealth management fees |
839 |
775 |
768 |
801 |
775 |
2,382 |
2,292 |
||||||||||
Customer service fees |
730 |
667 |
682 |
712 |
729 |
2,079 |
2,049 |
||||||||||
Gain on sale of mtg. loans & OMSR |
8,085 |
8,119 |
1,949 |
3,048 |
2,495 |
18,153 |
5,365 |
||||||||||
Mortgage loan servicing fees, net |
(169) |
(1,880) |
(2,052) |
334 |
8 |
(4,101) |
(731) |
||||||||||
Gain on sale of non-mortgage loans |
119 |
107 |
104 |
250 |
462 |
330 |
1,005 |
||||||||||
Title insurance revenue |
517 |
609 |
265 |
393 |
400 |
1,391 |
727 |
||||||||||
Net gain on sales of securities |
- |
- |
- |
- |
- |
- |
206 |
||||||||||
Gain (loss) on sale of assets |
(52) |
(80) |
(46) |
1 |
1 |
(178) |
(6) |
||||||||||
Other |
349 |
298 |
491 |
420 |
496 |
1,138 |
1,150 |
||||||||||
Total noninterest income |
10,418 |
8,615 |
2,161 |
5,959 |
5,366 |
21,194 |
12,057 |
||||||||||
Noninterest expense |
|||||||||||||||||
Salaries and employee benefits |
6,995 |
6,419 |
5,427 |
6,142 |
5,715 |
18,841 |
15,922 |
||||||||||
Net occupancy expense |
736 |
675 |
698 |
675 |
656 |
2,109 |
1,928 |
||||||||||
Equipment expense |
888 |
780 |
700 |
764 |
688 |
2,368 |
2,064 |
||||||||||
Data processing fees |
586 |
1,288 |
548 |
543 |
499 |
2,422 |
1,430 |
||||||||||
Professional fees |
695 |
1,224 |
757 |
639 |
571 |
2,676 |
1,837 |
||||||||||
Marketing expense |
137 |
141 |
208 |
171 |
239 |
486 |
724 |
||||||||||
Telephone and communication expense |
142 |
122 |
115 |
121 |
118 |
379 |
345 |
||||||||||
Postage and delivery expense |
96 |
96 |
115 |
86 |
89 |
307 |
254 |
||||||||||
State, local and other taxes |
331 |
262 |
254 |
347 |
243 |
847 |
745 |
||||||||||
Employee expense |
155 |
93 |
184 |
207 |
199 |
432 |
588 |
||||||||||
Other expenses |
574 |
562 |
400 |
481 |
483 |
1,536 |
1,397 |
||||||||||
Total noninterest expense |
11,335 |
11,662 |
9,406 |
10,176 |
9,500 |
32,403 |
27,234 |
||||||||||
Income before income tax expense |
6,542 |
4,525 |
703 |
4,079 |
4,624 |
11,770 |
10,553 |
||||||||||
Income tax expense |
1,292 |
870 |
22 |
721 |
862 |
2,184 |
1,938 |
||||||||||
Net income |
$ 5,250 |
$ 3,655 |
$ 681 |
$ 3,358 |
$ 3,762 |
$ 9,586 |
$ 8,615 |
||||||||||
Preferred share dividends |
- |
- |
- |
230 |
233 |
- |
720 |
||||||||||
Net income available to common shareholders |
5,250 |
3,655 |
681 |
3,128 |
3,529 |
9,586 |
7,895 |
||||||||||
Common share data: |
|||||||||||||||||
Basic earnings per common share |
$ 0.69 |
$ 0.47 |
$ 0.09 |
$ 0.48 |
$ 0.55 |
$ 1.25 |
$ 1.22 |
||||||||||
Diluted earnings per common share |
$ 0.69 |
$ 0.47 |
$ 0.09 |
$ 0.42 |
$ 0.48 |
$ 1.25 |
$ 1.08 |
||||||||||
Average shares outstanding (in thousands): |
|||||||||||||||||
Basic: |
7,607 |
7,708 |
7,756 |
6,445 |
6,397 |
7,700 |
6,459 |
||||||||||
Diluted: |
7,607 |
7,708 |
7,756 |
7,799 |
7,876 |
7,700 |
7,955 |
SB FINANCIAL GROUP, INC. |
|||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) |
|||||||||||||||
($ in thousands, except per share & ratios) |
At and for the Three Months Ended |
Nine Months Ended |
|||||||||||||
September |
June |
March |
December |
September |
September |
September |
|||||||||
SUMMARY OF OPERATIONS |
2020 |
2020 |
2020 |
2019 |
2019 |
2020 |
2019 |
||||||||
Net interest income |
$ 9,259 |
$ 8,872 |
$ 8,548 |
$ 8,596 |
$ 9,058 |
$ 26,679 |
$ 26,230 |
||||||||
Tax-equivalent adjustment |
36 |
37 |
42 |
41 |
43 |
115 |
130 |
||||||||
Tax-equivalent net interest income |
9,295 |
8,909 |
8,590 |
8,637 |
9,101 |
26,794 |
26,360 |
||||||||
Provision for loan loss |
1,800 |
1,300 |
600 |
300 |
300 |
3,700 |
500 |
||||||||
Noninterest income |
10,418 |
8,615 |
2,161 |
5,959 |
5,366 |
21,194 |
12,057 |
||||||||
Total operating revenue |
19,677 |
17,487 |
10,709 |
14,555 |
14,424 |
47,873 |
38,287 |
||||||||
Noninterest expense |
11,335 |
11,662 |
9,406 |
10,176 |
9,500 |
32,403 |
27,234 |
||||||||
Pre-tax pre-provision income |
8,342 |
5,825 |
1,303 |
4,379 |
4,924 |
15,470 |
11,053 |
||||||||
Pretax income |
6,542 |
4,525 |
703 |
4,079 |
4,624 |
11,770 |
10,553 |
||||||||
Net income |
5,250 |
3,655 |
681 |
3,358 |
3,762 |
9,586 |
8,615 |
||||||||
Net income available to common shareholders |
5,250 |
3,655 |
681 |
3,128 |
3,529 |
9,586 |
7,895 |
||||||||
PER SHARE INFORMATION: |
|||||||||||||||
Basic earnings per share (EPS) |
0.69 |
0.47 |
0.09 |
0.48 |
0.55 |
1.24 |
1.22 |
||||||||
Diluted earnings per share |
0.69 |
0.47 |
0.09 |
0.42 |
0.48 |
1.24 |
1.08 |
||||||||
Common dividends |
0.100 |
0.100 |
0.095 |
0.095 |
0.090 |
0.295 |
0.265 |
||||||||
Book value per common share |
18.73 |
17.97 |
17.64 |
17.53 |
17.28 |
18.73 |
17.3 |
||||||||
Tangible book value per common share (TBV) |
15.72 |
15.00 |
15.32 |
15.23 |
16.23 |
15.72 |
16.2 |
||||||||
Fully converted TBV per common share |
- |
- |
- |
- |
14.98 |
- |
15.0 |
||||||||
Market price per common share |
13.49 |
16.62 |
11.12 |
19.69 |
16.72 |
13.49 |
16.7 |
||||||||
Market price per preferred share |
- |
- |
- |
- |
16.50 |
- |
16.5 |
||||||||
Market price to TBV |
85.8% |
110.8% |
72.6% |
129.2% |
103.0% |
85.8% |
103.0% |
||||||||
Market price to fully converted TBV |
- |
- |
- |
- |
111.6% |
- |
111.6% |
||||||||
Market price to trailing 12 month EPS |
8.0 |
11.4 |
8.4 |
13.0 |
11.5 |
8.0 |
11.5 |
||||||||
PERFORMANCE RATIOS: |
|||||||||||||||
Return on average assets (ROAA) |
1.73% |
1.25% |
0.26% |
1.28% |
1.44% |
1.12% |
1.13% |
||||||||
Pre-tax pre-provision ROAA |
2.74% |
1.99% |
0.49% |
1.67% |
1.89% |
1.81% |
1.44% |
||||||||
Return on average equity |
15.01% |
10.31% |
1.99% |
9.93% |
11.24% |
9.74% |
8.67% |
||||||||
Return on average tangible equity |
17.93% |
11.91% |
2.29% |
12.83% |
14.67% |
11.48% |
11.35% |
||||||||
Efficiency ratio |
57.48% |
66.68% |
87.81% |
69.90% |
65.85% |
67.68% |
71.12% |
||||||||
Earning asset yield |
3.96% |
3.95% |
4.32% |
4.80% |
4.98% |
4.08% |
4.87% |
||||||||
Cost of interest bearing liabilities |
0.75% |
0.89% |
1.12% |
1.42% |
1.33% |
0.91% |
1.27% |
||||||||
Net interest margin |
3.39% |
3.30% |
3.47% |
3.68% |
3.91% |
3.39% |
3.85% |
||||||||
Tax equivalent effect |
0.02% |
0.02% |
0.01% |
0.02% |
0.02% |
0.02% |
0.02% |
||||||||
Net interest margin, tax equivalent |
3.41% |
3.32% |
3.48% |
3.70% |
3.93% |
3.41% |
3.87% |
||||||||
Non interest income/Average assets |
3.42% |
2.95% |
0.81% |
2.27% |
2.06% |
2.48% |
1.58% |
||||||||
Non interest expense/Average assets |
3.73% |
3.99% |
3.54% |
3.87% |
3.64% |
3.79% |
3.56% |
||||||||
Net noninterest expense/Average assets |
-0.30% |
-1.04% |
-2.73% |
-1.60% |
-1.58% |
-1.31% |
-1.98% |
||||||||
ASSET QUALITY RATIOS: |
|||||||||||||||
Gross charge-offs |
32 |
254 |
400 |
51 |
128 |
686 |
208 |
||||||||
Recoveries |
11 |
10 |
3 |
14 |
15 |
24 |
33 |
||||||||
Net charge-offs |
21 |
244 |
397 |
37 |
113 |
662 |
175 |
||||||||
Nonaccruing loans/Total loans |
0.72% |
0.72% |
0.70% |
0.67% |
0.40% |
0.72% |
0.40% |
||||||||
Nonperforming loans/Total loans |
0.81% |
0.81% |
0.79% |
0.77% |
0.50% |
0.81% |
0.50% |
||||||||
Nonperforming assets/Loans & OREO |
0.82% |
0.86% |
0.80% |
0.81% |
0.56% |
0.82% |
0.56% |
||||||||
Nonperforming assets/Total assets |
0.60% |
0.64% |
0.61% |
0.64% |
0.44% |
0.60% |
0.44% |
||||||||
Allowance for loan loss/Nonperforming loans |
163.84% |
136.45% |
135.77% |
137.35% |
207.12% |
163.84% |
207.12% |
||||||||
Allowance for loan loss/Total loans |
1.33% |
1.11% |
1.08% |
1.06% |
1.03% |
1.33% |
1.03% |
||||||||
Allowance for loan loss/Total loans less PPP |
1.47% |
1.22% |
1.08% |
1.06% |
1.03% |
1.47% |
1.03% |
||||||||
Net loan charge-offs/Average loans (ann.) |
0.01% |
0.11% |
0.19% |
0.02% |
0.05% |
0.10% |
0.03% |
||||||||
Loan loss provision/Net charge-offs |
8571.43% |
532.79% |
151.13% |
810.81% |
265.49% |
558.91% |
285.71% |
||||||||
CAPITAL & LIQUIDITY RATIOS: |
|||||||||||||||
Loans/ Deposits |
87.36% |
91.01% |
96.17% |
98.25% |
97.10% |
87.36% |
97.10% |
||||||||
Equity/ Assets |
11.60% |
11.46% |
12.49% |
13.10% |
12.87% |
11.60% |
12.87% |
||||||||
Tangible equity/Tangible assets |
9.92% |
9.75% |
11.03% |
11.59% |
10.07% |
9.92% |
10.07% |
||||||||
Tangible equity adjusted for conversion |
- |
- |
- |
- |
11.36% |
- |
11.36% |
||||||||
Common equity tier 1 ratio (Bank) |
13.20% |
11.97% |
12.17% |
12.46% |
12.07% |
13.20% |
12.07% |
||||||||
END OF PERIOD BALANCES |
|||||||||||||||
Total assets |
1,218,241 |
1,202,936 |
1,088,313 |
1,038,577 |
1,042,761 |
1,218,241 |
1,042,761 |
||||||||
Total loans |
885,850 |
901,548 |
830,764 |
825,510 |
823,367 |
885,850 |
823,367 |
||||||||
Deposits |
1,014,015 |
990,587 |
863,891 |
840,219 |
847,954 |
1,014,015 |
847,954 |
||||||||
Stockholders equity |
141,347 |
137,881 |
135,905 |
136,094 |
134,246 |
141,347 |
134,246 |
||||||||
Goodwill and intangibles |
22,763 |
22,813 |
17,830 |
17,832 |
17,834 |
22,763 |
17,834 |
||||||||
Preferred equity |
- |
- |
- |
- |
13,241 |
- |
13,241 |
||||||||
Tangible equity |
118,584 |
115,068 |
118,075 |
118,262 |
103,171 |
118,584 |
103,171 |
||||||||
Mortgage servicing portfolio |
1,293,037 |
1,261,746 |
1,216,292 |
1,199,107 |
1,153,020 |
1,293,037 |
1,153,020 |
||||||||
Wealth/Brokerage assets under care |
522,360 |
495,025 |
427,129 |
507,670 |
484,295 |
522,360 |
484,295 |
||||||||
Total assets under care |
3,033,638 |
2,959,707 |
2,731,734 |
2,745,354 |
2,680,076 |
3,033,638 |
2,680,076 |
||||||||
Full-time equivalent employees |
251 |
254 |
253 |
252 |
247 |
251 |
247 |
||||||||
Period end common shares outstanding |
7,545 |
7,672 |
7,705 |
7,763 |
6,357 |
7,545 |
6,357 |
||||||||
Period end outstanding (Series A Converted) |
- |
- |
- |
- |
1,414 |
- |
1,414 |
||||||||
Market capitalization (all) |
101,782 |
127,509 |
85,680 |
152,853 |
129,620 |
101,782 |
129,620 |
||||||||
AVERAGE BALANCES |
|||||||||||||||
Total assets |
1,216,843 |
1,169,030 |
1,061,365 |
1,051,071 |
1,043,791 |
1,141,008 |
1,020,074 |
||||||||
Total earning assets |
1,090,386 |
1,073,490 |
986,216 |
934,540 |
927,360 |
1,047,846 |
908,284 |
||||||||
Total loans |
907,483 |
898,216 |
832,975 |
828,108 |
829,699 |
879,536 |
803,431 |
||||||||
Deposits |
1,007,679 |
946,053 |
855,272 |
856,961 |
849,984 |
936,805 |
829,335 |
||||||||
Stockholders equity |
139,908 |
141,821 |
136,930 |
135,267 |
133,891 |
131,156 |
132,465 |
||||||||
Goodwill and intangibles |
22,787 |
19,066 |
17,831 |
17,833 |
17,835 |
19,813 |
17,518 |
||||||||
Preferred equity |
- |
- |
- |
12,707 |
13,459 |
- |
13,771 |
||||||||
Tangible equity |
117,121 |
122,755 |
119,099 |
104,727 |
102,597 |
111,343 |
101,176 |
||||||||
Average basic shares outstanding |
7,607 |
7,708 |
7,756 |
6,445 |
6,397 |
7,700 |
6,459 |
||||||||
Average diluted shares outstanding |
7,607 |
7,708 |
7,756 |
7,799 |
7,876 |
7,700 |
7,955 |
SB FINANCIAL GROUP, INC. |
||||||||||
Rate Volume Analysis - (Unaudited) |
||||||||||
At and for the Three Months Ended September 30, 2020 and 2019 |
||||||||||
($ in thousands) |
Three Months Ended Sep. 30, 2020 |
Three Months Ended Sep. 30, 2019 |
||||||||
Average |
Average |
Average |
Average |
|||||||
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
Taxable securities/Cash |
$ 176,821 |
$ 494 |
1.12% |
$ 89,782 |
$ 776 |
3.46% |
||||
Nontaxable securities |
6,082 |
87 |
5.72% |
7,879 |
81 |
4.11% |
||||
Loans, net |
907,483 |
10,226 |
4.51% |
829,699 |
10,689 |
5.15% |
||||
Total earning assets |
1,090,386 |
10,807 |
3.96% |
927,360 |
11,546 |
4.98% |
||||
Cash and due from banks |
53,532 |
55,039 |
||||||||
Allowance for loan losses |
(10,448) |
(8,392) |
||||||||
Premises and equipment |
23,968 |
23,855 |
||||||||
Other assets |
59,405 |
45,929 |
||||||||
Total assets |
$ 1,216,843 |
$ 1,043,791 |
||||||||
Liabilities |
||||||||||
Savings, MMDA and interest bearing demand |
$ 531,913 |
$ 690 |
0.52% |
$ 434,190 |
$ 769 |
0.71% |
||||
Time deposits |
254,381 |
746 |
1.17% |
272,433 |
1,489 |
2.19% |
||||
Repurchase agreements & other |
23,811 |
12 |
0.20% |
15,948 |
22 |
0.55% |
||||
Advances from Federal Home Loan Bank |
8,272 |
59 |
2.85% |
16,000 |
101 |
2.53% |
||||
Trust preferred securities |
10,310 |
54 |
2.10% |
10,310 |
107 |
4.15% |
||||
Total interest bearing liabilities |
828,687 |
1,561 |
0.75% |
748,881 |
2,488 |
1.33% |
||||
Non interest bearing demand |
221,385 |
- |
143,361 |
- |
||||||
Total funding |
1,050,072 |
0.59% |
892,242 |
1.12% |
||||||
Other liabilities |
26,863 |
17,658 |
||||||||
Total liabilities |
1,076,935 |
909,900 |
||||||||
Equity |
139,908 |
133,891 |
||||||||
Total liabilities and equity |
$ 1,216,843 |
$ 1,043,791 |
||||||||
Net interest income |
$ 9,246 |
$ 9,058 |
||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure |
3.39% |
3.91% |
||||||||
Net interest income as a percent of average interest-earning assets - non GAAP |
3.41% |
3.93% |
||||||||
- Computed on a fully tax equivalent (FTE) basis |
||||||||||
Nine Months Ended Sep. 30, 2020 |
Nine Months Ended Sep. 30, 2019 |
|||||||||
Average |
Average |
Average |
Average |
|||||||
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
Taxable securities |
$ 161,947 |
$ 1,696 |
1.40% |
$ 96,013 |
$ 2,489 |
3.46% |
||||
Nontaxable securities |
6,363 |
246 |
5.15% |
8,840 |
273 |
4.12% |
||||
Loans, net |
879,536 |
30,104 |
4.56% |
803,431 |
30,433 |
5.05% |
||||
Total earning assets |
1,047,846 |
32,046 |
4.08% |
908,284 |
33,195 |
4.87% |
||||
Cash and due from banks |
28,040 |
46,797 |
||||||||
Allowance for loan losses |
(9,560) |
(8,303) |
||||||||
Premises and equipment |
23,855 |
23,643 |
||||||||
Other assets |
50,827 |
49,653 |
||||||||
Total assets |
$ 1,141,008 |
$ 1,020,074 |
||||||||
Liabilities |
||||||||||
Savings, MMDA and interest bearing demand |
$ 483,156 |
$ 2,550 |
0.70% |
$ 426,436 |
$ 2,232 |
0.70% |
||||
Time deposits |
253,398 |
2,315 |
1.22% |
261,362 |
4,036 |
2.06% |
||||
Repurchase agreements & Other |
21,856 |
60 |
0.37% |
15,760 |
65 |
0.55% |
||||
Advances from Federal Home Loan Bank |
16,263 |
251 |
2.06% |
16,088 |
301 |
2.49% |
||||
Trust preferred securities |
10,310 |
204 |
2.64% |
10,310 |
331 |
4.28% |
||||
Total interest bearing liabilities |
784,983 |
5,380 |
0.91% |
729,956 |
6,965 |
1.27% |
||||
Non interest bearing demand |
200,251 |
0.73% |
141,537 |
1.07% |
||||||
Total funding |
985,234 |
871,493 |
||||||||
Other liabilities |
24,618 |
16,116 |
||||||||
Total liabilities |
1,009,852 |
887,609 |
||||||||
Equity |
131,156 |
132,465 |
||||||||
Total liabilities and equity |
$ 1,141,008 |
$ 1,020,074 |
||||||||
Net interest income |
$ 26,666 |
$ 26,230 |
||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure |
3.39% |
3.85% |
||||||||
Net interest income as a percent of average interest-earning assets - non GAAP |
3.41% |
3.87% |
||||||||
- Computed on a fully tax equivalent (FTE) basis |
Non-GAAP reconciliation |
Three Months Ended |
Nine Months Ended |
|||||||
($ in thousands, except per share & ratios) |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||
Total operating revenue |
$ 19,677 |
$ 14,424 |
$ 47,873 |
$ 38,287 |
|||||
Adjustment to (deduct)/add OMSR impairment* |
(326) |
- |
2,974 |
1,398 |
|||||
Adjusted total operating revenue |
19,351 |
14,424 |
50,847 |
39,685 |
|||||
Total operating expense |
11,335 |
9,500 |
32,403 |
27,234 |
|||||
Adjustment for merger expenses** |
- |
- |
(1,241) |
- |
|||||
Adjusted total operating expense |
11,335 |
9,500 |
31,162 |
27,234 |
|||||
Income before income taxes |
6,542 |
4,624 |
11,770 |
10,553 |
|||||
Adjustment for OMSR & merger expense |
(326) |
- |
4,215 |
1,398 |
|||||
Adjusted income before income taxes |
6,216 |
4,624 |
15,985 |
11,951 |
|||||
Provision for income taxes |
1,292 |
862 |
2,184 |
1,938 |
|||||
Adjustment for OMSR & merger expense*** |
(68) |
- |
885 |
294 |
|||||
Adjusted provision for income taxes |
1,224 |
862 |
3,069 |
2,233 |
|||||
Net income |
5,250 |
3,762 |
9,586 |
8,615 |
|||||
Adjustment for OMSR & merger expense |
(258) |
- |
3,330 |
1,104 |
|||||
Adjusted net income |
4,992 |
3,762 |
12,916 |
9,720 |
|||||
Diluted earnings per share |
0.69 |
0.48 |
1.25 |
1.08 |
|||||
Adjustment for OMSR & merger expense |
(0.04) |
- |
0.42 |
0.14 |
|||||
Adjusted diluted earnings per share |
$ 0.65 |
$ 0.48 |
$ 1.67 |
$ 1.22 |
|||||
Return on average assets |
1.73% |
1.44% |
1.12% |
1.13% |
|||||
Adjustment for OMSR & merger expense |
-0.08% |
0.00% |
0.29% |
0.11% |
|||||
Adjusted return on average assets |
1.64% |
1.44% |
1.41% |
1.23% |
|||||
Pretax, preprovision income |
8,342 |
4,924 |
15,470 |
11,053 |
|||||
Adjustment for OMSR & merger expense |
(326) |
- |
4,215 |
1,398 |
|||||
Adjusted pretax, preprovision income |
8,016 |
4,924 |
19,685 |
12,451 |
|||||
*valuation adjustment to the Company's mortgage servicing rights |
|||||||||
**transactions costs related to the Edon acquisition |
|||||||||
***tax effect is calculated using a 21% statutory federal corporate income tax rate |
SOURCE SB Financial Group, Inc.
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