8-K
SB FINANCIAL GROUP, INC. (SBFG)
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM
8-K
CURRENT
REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 22, 2024 (July 18, 2024)
SB
FINANCIAL GROUP, INC
(Exact name of registrant as specified in its charter)
| Ohio | 001-36785 | 34-1395608 |
|---|---|---|
| (State or other jurisdiction <br><br>of incorporation) | (Commission File Number) | (IRS Employer<br><br> Identification No.) |
| 401 Clinton Street, Defiance, OH | 43512 | |
| --- | --- | |
| (Address<br> of principal executive offices) | (Zip<br> Code) |
Registrant’s
telephone number, including area code (419) 783-8950
Not
Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written<br>communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br>material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement<br>communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement<br>communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registererd |
|---|---|---|
| Common Shares, No Par Value 6,740,592 Outstanding at July 22, 2024 | SBFG | The NASDAQ Stock Market, LLC (NASDAQ Capital Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 18, 2024, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the second quarter 2024. A copy of the July 18, 2024 news release is furnished as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.
Item 9.01. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Not Applicable
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | News release issued by SB Financial Group, Inc. on July 18, 2024, reporting financial results for the second quarter 2024. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SB FINANCIAL GROUP, INC. | ||
|---|---|---|
| Dated: July 22, 2024 | By: | /s/ Anthony V. Cosentino |
| Anthony V. Cosentino | ||
| Chief Financial Officer |
2
INDEX
TO EXHIBITS
Current
Report on Form 8-K
Dated
July 22, 2024
SB
Financial Group, Inc.
| Exhibit<br> No. | Description |
|---|---|
| 99.1 | News release issued by SB Financial Group, Inc. on July 18, 2024, reporting financial results for the second quarter 2024. |
| 104 | Cover<br> Page Interactive Data File (embedded within the Inline XBRL document) |
-3-
Exhibit 99.1
SB Financial Group Announces Second Quarter2024 Results
DEFIANCE, OH, July 18, 2024 -- SB FinancialGroup, 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 ended June 30, 2024.
Second Quarter 2024 Highlights compared tothe second quarter of the prior year:
| ● | Net income of $3.1 million, up 1.2 percent and<br>in line with the same quarter last year. Diluted Earnings Per Share (“EPS”) increased to $0.47 or 6.8% from $0.44; |
|---|---|
| ● | Net interest income totaled $9.7 million, a 1.7<br>percent decrease from the $9.8 million; |
| --- | --- |
| ● | Loan growth increased to $1.01 billion, up by<br>$20.6 million or 2.1 percent from the $984.8 million; |
| --- | --- |
| ● | Return on Average Assets (“ROAA”)<br>increased to 0.93%, up 2 basis points from the previous year, while Return on Average Equity (“ROAE”) declined slightly to<br>10.16%, down 16 basis points from 10.32%. |
| --- | --- |
Six Months Ended June 30, 2024 Highlights comparedto the same period of the prior year:
| ● | Mortgage Banking Revenue increased to $3.4 million,<br>up by 22.8 percent from $2.8 million. |
|---|
Trailing Twelve Months Ended June 30, 2024Highlights compared to the prior year:
| ● | EPS was $1.78 for the twelve months ended June<br>2024, an increase of 1.1 percent from the prior twelve months of $1.76. |
|---|---|
| ● | Total deposits were $1.12 billion at the end<br>of June 2024, representing an increase of 4.1 percent from $1.07 billion at the end of June 2023. |
| --- | --- |
| ● | Mortgage origination volume was $218.8 million<br>for the trailing twelve months, with the servicing portfolio of $1.39 billion, which increased by 2.7 percent. |
| --- | --- |
| Earnings Highlights | Three<br> Months Ended | Six<br> Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($<br> in thousands, except per share & ratios) | Jun.<br> 2024 | Jun.<br> 2023 | %<br> Change | Jun.<br> 2024 | Jun.<br> 2023 | %<br> Change | ||||||||||||
| Operating revenue | $ | 14,045 | $ | 14,190 | -1.0 | % | $ | 27,176 | $ | 28,180 | -3.6 | % | ||||||
| Interest income | 15,654 | 14,406 | 8.7 | % | 30,954 | 28,230 | 9.6 | % | ||||||||||
| Interest expense | 5,995 | 4,577 | 31.0 | % | 12,115 | 8,077 | 50.0 | % | ||||||||||
| Net interest income | 9,659 | 9,829 | -1.7 | % | 18,839 | 20,153 | -6.5 | % | ||||||||||
| Provision for credit losses | - | 145 | -100.0 | % | - | 395 | 0.0 | % | ||||||||||
| Noninterest income | 4,386 | 4,361 | 0.6 | % | 8,337 | 8,027 | 3.9 | % | ||||||||||
| Noninterest expense | 10,671 | 10,339 | 3.2 | % | 20,953 | 21,112 | -0.8 | % | ||||||||||
| Net income | 3,113 | 3,075 | 1.2 | % | 5,481 | 5,525 | -0.8 | % | ||||||||||
| Earnings per diluted share | 0.47 | 0.44 | 6.8 | % | 0.82 | 0.79 | 3.8 | % | ||||||||||
| Return on average assets | 0.93 | % | 0.91 | % | 2.2 | % | 0.82 | % | 0.82 | % | 0.0 | % | ||||||
| Return on average equity | 10.16 | % | 10.32 | % | -1.6 | % | 9.02 | % | 9.01 | % | 0.1 | % |
“We demonstrated solid execution and financial stability in the quarter ended June 30, 2024,” stated Mark A. Klein, Chairman, President, and CEO. “We maintained a net income of $3.1 million, a testament to our operational resilience and our relentless focus on profitability. Notably, our diluted earnings per share increased by 6.8% to $0.47, reflecting our unwavering commitment to delivering shareholder value amidst economic uncertainties.”
“Our loan portfolio expanded to $1.01 billion, an increase of $20.6 million, showcasing our disciplined growth strategy and the strong confidence our clients place in our partnership. Despite ongoing market challenges, our deposit base grew by $44.0 million or 4.1% year-over-year to $1.12 billion, underscoring our margin oversight and the sustained trust of our customers. We continue to maintain a conservative risk profile, with peer leading asset quality and no loan charge-offs,” added Mr. Klein.
RESULTS OF OPERATIONS
Consolidated Revenue
In the second quarter of 2024, SB Financial Group demonstrated operational resilience with a slight year-over-year decline in operating revenue of only 1.0%, coupled with an increase of 7.0% from the preceding quarter. Despite a 1.7% decrease in net interest income—largely attributable to elevated deposit costs—our financial management mitigated the impact, resulting in a nominal 5 basis point reduction in our net interest margin when compared to the second quarter of 2023.
Noninterest income recorded a 0.6% increase over the same quarter last year, fueled by a substantial 20.9% surge in gains from the sale of mortgages and OMSR, alongside a 14.4% increase in mortgage loan servicing fees. Consistent customer service fees further improved our solid revenue base. However, we noted variances in performance across other noninterest income areas, such as wealth management and title insurance services, which saw declines. For the first time in over 2 years, interest expenses decreased on a linked quarter basis, highlighting the stabilization of funding costs.
Mortgage Loan Business
In the second quarter of 2024, SB Financial Group’s mortgage loan business recorded a 14.9% increase in loan originations, reaching $75.1 million from $65.4 million in the corresponding period last year. This notable growth underscores some strengthening in the housing market and hopefully signals broader positive economic trends.
Mortgage sales demonstrated significant expansion this quarter, reaching $55.8 million, or 74% of total originations. This higher level of sales volume, marked a 16.5% year-over-year increase from $47.9 million, underscores our successful market penetration and strategic positioning, particularly in a competitive lending environment. Our mortgage banking net revenue saw an increase to $1.8 million, up 18.8% from the previous year, reflecting our strong operational efficiency. Additionally, the mortgage servicing portfolio expanded by 2.7%, reaching $1.39 billion, which reinforces our dedication to sustainable growth and enhanced servicing capabilities.
Mr. Klein, Chairman, President, and CEO of SB Financial Group, stated, “This quarter has showcased improved efficiency in our mortgage operations. Although our results slightly missed our internal targets, the shortfall primarily reflects the heightened competitiveness and shifting dynamics within the mortgage market. Despite these challenges, our proactive measures, most notably the expansion of our origination teams, have positioned us to capitalize on market opportunities and maintain our growth momentum.”
| Mortgage Banking<br><br>($ in thousands) | Jun. 2024 | Mar. 2024 | Dec. 2023 | Sep. 2023 | Jun. 2023 | Prior Year<br><br> Growth | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mortgage originations | $ | 75,110 | $ | 42,912 | $ | 39,566 | $ | 61,200 | $ | 65,387 | $ | 9,723 | ||||||
| Mortgage sales | 55,835 | 36,623 | 33,362 | 54,085 | 47,933 | 7,902 | ||||||||||||
| Mortgage servicing portfolio | 1,389,805 | 1,371,713 | 1,366,667 | 1,367,209 | 1,353,904 | 35,901 | ||||||||||||
| Mortgage servicing rights | 14,548 | 14,191 | 13,906 | 13,893 | 13,723 | 825 | ||||||||||||
| Revenue | ||||||||||||||||||
| Loan servicing fees | 862 | 855 | 855 | 850 | 844 | 18 | ||||||||||||
| OMSR amortization | (335 | ) | (273 | ) | (282 | ) | (334 | ) | (334 | ) | (1 | ) | ||||||
| Net administrative fees | 527 | 582 | 573 | 516 | 510 | 17 | ||||||||||||
| OMSR valuation adjustment | 38 | 181 | (12 | ) | (78 | ) | (16 | ) | 54 | |||||||||
| Net loan servicing fees | 565 | 763 | 561 | 438 | 494 | 71 | ||||||||||||
| Gain on sale of mortgages | 1,277 | 781 | 747 | 1,207 | 1,056 | 221 | ||||||||||||
| Mortgage banking revenue, net | $ | 1,842 | $ | 1,544 | $ | 1,308 | $ | 1,645 | $ | 1,550 | $ | 292 |
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Noninterest Income and Noninterest Expense
For the second quarter of 2024, noninterest income at SB Financial Group increased slightly to $4.4 million compared to the prior year quarter, marking a modest increase of 0.6%. This growth is primarily attributable to strategic initiatives, including enhanced gain-on-sale yields from mortgage loans and higher recapture of servicing rights, which significantly contributed to our financial performance. Additionally, customer service fees rose marginally, reinforcing our attention in this area. Noninterest expenses for the second quarter were reported at $10.7 million, reflecting a 3.2% increase from the previous year’s $10.3 million, as higher commission costs from mortgage volume drove compensation higher.
| Noninterest Income/Noninterest Expense<br><br>($ in thousands, except ratios) | Jun. 2024 | Mar. 2024 | Dec. 2023 | Sep. 2023 | Jun. 2023 | Prior Year<br><br> Growth | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Noninterest Income (NII) | $ | 4,386 | $ | 3,951 | $ | 5,531 | $ | 4,163 | $ | 4,361 | $ | 25 | ||||||
| NII / Total Revenue | 31.5 | % | 30.1 | % | 36.6 | % | 30.4 | % | 30.7 | % | 0.8 | % | ||||||
| NII / Average Assets | 1.3 | % | 1.2 | % | 1.7 | % | 1.2 | % | 1.3 | % | 0.0 | % | ||||||
| Total Revenue Growth | -0.6 | % | -6.1 | % | 3.4 | % | -5.3 | % | -0.5 | % | -0.6 | % | ||||||
| Noninterest Expense (NIE) | $ | 10,671 | $ | 10,282 | $ | 10,369 | $ | 10,481 | $ | 10,339 | $ | 332 | ||||||
| Efficiency Ratio | 75.9 | % | 78.2 | % | 68.4 | % | 79.0 | % | 72.7 | % | 3.2 | % | ||||||
| NIE / Average Assets | 3.2 | % | 3.1 | % | 3.1 | % | 3.1 | % | 3.1 | % | 0.1 | % | ||||||
| Net Noninterest Expense/Avg. Assets | -1.9 | % | -1.9 | % | -1.4 | % | -1.9 | % | -1.8 | % | -0.1 | % | ||||||
| Total Expense Growth | 3.2 | % | -4.6 | % | 1.0 | % | 0.9 | % | -4.3 | % | 3.2 | % |
Mr. Klein commented on the financial performance, stating, “Our noninterest income has shown consistent resilience, supported by significant gains from mortgage and mortgage servicing fees, reflecting our agility and expertise in capitalizing on favorable market conditions. Regarding expenses, the increase this quarter is driven by revenue generation activities. Our focus remains on optimizing our cost structure and ensuring operational efficiency, which is paramount in delivering sustained value to our stakeholders.”
Balance Sheet
As of June 30, 2024, SB Financial Group has continued to demonstrate financial stability, with total assets reporting a marginal increase to $1.34 billion, up by 0.06% year-over-year. Our loan portfolio again crossed the $1 billion threshold and now stands at $1.01 billion, marking an increase of $20.6 million or 2.1% compared to the previous year. This growth is indicative of our effective lending practices in a dynamic economic landscape. Furthermore, an increase in cash and cash equivalents has provided enhanced liquidity, further strengthening our financial position.
Shareholders’ equity experienced a slight quarterly expansion of 1.4% to $125.5 million compared to the linked quarter and also showed positive growth of 6.6% on a year-over-year basis. This growth underscores our consistent efforts to enhance shareholder value amidst fluctuating market conditions.
“In 2024, we have maintained a disciplined and proactive approach to our growth and capital management, aligning closely with our objectives. Our ability to sustain and grow our loan portfolio, even in a highly competitive market, demonstrates the resilience of our business model and the effectiveness of our relationship-driven lending practices. Moreover, the year-over-year increase in shareholders’ equity highlights our continued commitment to driving shareholder value. We remain poised to leverage any opportunities that will fortify our financial position and ensure long-term prosperity for our stakeholders,” commented Mr. Klein.
3
| Loan Balances ($ in thousands, except ratios) | Jun. 2024 | **** | Mar. 2024 | **** | Dec. 2023 | **** | Sep. 2023 | **** | Jun. 2023 | **** | Annual Growth | **** | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commercial | $ | 123,287 | $ | 120,016 | $ | 126,716 | $ | 120,325 | $ | 123,226 | $ | 61 | ||||||
| % of Total | 12.3 | % | 12.1 | % | 12.7 | % | 12.2 | % | 12.5 | % | 0.0 | % | ||||||
| Commercial RE | 434,967 | 429,362 | 424,041 | 421,736 | 417,412 | 17,555 | ||||||||||||
| % of Total | 43.3 | % | 43.3 | % | 42.4 | % | 42.6 | % | 42.4 | % | 4.2 | % | ||||||
| Agriculture | 64,329 | 62,365 | 65,659 | 60,928 | 58,222 | 6,107 | ||||||||||||
| % of Total | 6.4 | % | 6.3 | % | 6.6 | % | 6.2 | % | 5.9 | % | 10.5 | % | ||||||
| Residential RE | 316,233 | 314,668 | 318,123 | 320,306 | 321,365 | (5,132 | ) | |||||||||||
| % of Total | 31.5 | % | 31.7 | % | 31.8 | % | 32.4 | % | 32.6 | % | -1.6 | % | ||||||
| Consumer & Other | 66,574 | 65,141 | 65,673 | 65,726 | 64,599 | 1,975 | ||||||||||||
| % of Total | 6.6 | % | 6.6 | % | 6.6 | % | 6.6 | % | 6.6 | % | 3.1 | % | ||||||
| Total Loans | $ | 1,005,390 | $ | 991,552 | $ | 1,000,212 | $ | 989,021 | $ | 984,824 | $ | 20,566 | ||||||
| Total Growth Percentage | 2.1 | % | ||||||||||||||||
| Deposit Balances ($ in thousands, except ratios) | Jun. 2024 | **** | Mar. 2024 | **** | Dec. 2023 | **** | Sep. 2023 | **** | Jun. 2023 | **** | Annual Growth | **** | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Non-Int DDA | $ | 208,244 | $ | 219,395 | $ | 228,713 | $ | 224,182 | $ | 218,411 | $ | (10,167 | ) | |||||
| % of Total | 18.7 | % | 19.7 | % | 21.4 | % | 20.7 | % | 20.4 | % | -4.7 | % | ||||||
| Interest DDA | 190,857 | 169,171 | 166,413 | 174,729 | 170,282 | 20,575 | ||||||||||||
| % of Total | 17.1 | % | 15.2 | % | 15.5 | % | 16.1 | % | 15.9 | % | 12.1 | % | ||||||
| Savings | 231,855 | 244,157 | 216,965 | 226,077 | 225,065 | 6,790 | ||||||||||||
| % of Total | 20.8 | % | 21.9 | % | 20.3 | % | 20.8 | % | 21.0 | % | 3.0 | % | ||||||
| Money Market | 225,650 | 221,362 | 202,605 | 216,565 | 217,681 | 7,969 | ||||||||||||
| % of Total | 20.2 | % | 19.9 | % | 18.9 | % | 20.0 | % | 20.3 | % | 3.7 | % | ||||||
| Time Deposits | 258,582 | 258,257 | 255,509 | 243,766 | 239,717 | 18,865 | ||||||||||||
| % of Total | 23.2 | % | 23.2 | % | 23.9 | % | 22.5 | % | 22.4 | % | 7.9 | % | ||||||
| Total Deposits | $ | 1,115,188 | $ | 1,112,342 | $ | 1,070,205 | $ | 1,085,319 | $ | 1,071,156 | $ | 44,032 | ||||||
| Total Growth Percentage | 4.1 | % |
Asset Quality
SB Financial Group’s dedication to maintaining exceptional asset quality remains evident through the second quarter of 2024. As of June 2024, nonperforming loans constituted 0.47% of total loans, reflecting an increase from 0.25% in the previous quarter. Despite the slight increase in nonperforming loans to total loans, our criticized loan categories are down nearly 23% compared to the prior year and our reserve coverage remains above 325%.
Moreover, the net loan charge-offs to average loans ratio, annualized at -0.01%, highlights our effective management of loan repayments and the high quality of our credit portfolio. These metrics reinforce our reputation for rigorous risk management and credit excellence.
Mark A. Klein, Chairman, President, and CEO of SB Financial, commented, “Our second-quarter performance underscores our unwavering commitment to asset quality. Despite a slight increase in nonperforming loans, our substantial allowance for credit losses and effective loan management practices reflects our measured approach to risk management. We are steadfast in ensuring the strength and stability of our loan portfolio, even in the face of economic fluctuations.”
4
| Nonperforming Assets ($ in thousands, except ratios) | Jun. 2024 | **** | Mar. 2024 | **** | Dec. 2023 | **** | Sep. 2023 | **** | Jun. 2023 | **** | Annual Change | **** | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commercial & Agriculture | $ | 2,781 | $ | 897 | $ | 748 | $ | 717 | $ | 170 | $ | 2,611 | ||||||
| % of Total Com./Ag. loans | 1.48 | % | 0.49 | % | 0.39 | % | 0.40 | % | 0.09 | % | 1535.9 | % | ||||||
| Commercial RE | 475 | 49 | 168 | 222 | 192 | 283 | ||||||||||||
| % of Total CRE loans | 0.11 | % | 0.01 | % | 0.04 | % | 0.05 | % | 0.05 | % | 147.4 | % | ||||||
| Residential RE | 1,247 | 1,295 | 1,690 | 2,182 | 2,266 | (1,019 | ) | |||||||||||
| % of Total Res. RE loans | 0.39 | % | 0.41 | % | 0.53 | % | 0.68 | % | 0.71 | % | -45.0 | % | ||||||
| Consumer & Other | 231 | 193 | 212 | 208 | 282 | (51 | ) | |||||||||||
| % of Total Con./Oth. loans | 0.35 | % | 0.30 | % | 0.32 | % | 0.32 | % | 0.44 | % | -18.1 | % | ||||||
| Total Nonaccruing Loans | 4,734 | 2,434 | 2,818 | 3,329 | 2,910 | 1,824 | ||||||||||||
| % of Total loans | 0.47 | % | 0.25 | % | 0.28 | % | 0.34 | % | 0.30 | % | 62.7 | % | ||||||
| Foreclosed Assets and Other Assets | 510 | 510 | 511 | 629 | 625 | (115 | ) | |||||||||||
| Total Change (%) | -18.4 | % | ||||||||||||||||
| Total Nonperforming Assets | $ | 5,244 | $ | 2,944 | $ | 3,329 | $ | 3,958 | $ | 3,535 | $ | 1,709 | ||||||
| % of Total assets | 0.39 | % | 0.22 | % | 0.25 | % | 0.30 | % | 0.26 | % | 48.35 | % |
Webcast and Conference Call
The Company will hold the second quarter 2024 earnings conference call and webcast on July 19, 2024, 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 23 ATMs. State Bank has six 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 with the ticker symbol “SBFG”.
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking 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.
5
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 OMSR valuation adjustment from net income to report a non-GAAP 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
6
SB FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS - (Unaudited)
| June | March | December | September | June | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 21,983 | $ | 26,602 | $ | 22,965 | $ | 19,049 | $ | 20,993 | |||||
| Interest bearing time deposits | 2,417 | 2,417 | 1,535 | 1,180 | 1,180 | ||||||||||
| Available-for-sale securities | 208,156 | 213,239 | 219,708 | 212,768 | 227,996 | ||||||||||
| Loans held for sale | 7,864 | 4,730 | 2,525 | 3,206 | 5,684 | ||||||||||
| Loans, net of unearned income | 1,005,390 | 991,552 | 1,000,212 | 989,021 | 984,824 | ||||||||||
| Allowance for credit losses | (15,612 | ) | (15,643 | ) | (15,786 | ) | (15,790 | ) | (15,795 | ) | |||||
| Premises and equipment, net | 20,860 | 20,985 | 21,378 | 21,934 | 22,230 | ||||||||||
| Federal Reserve and FHLB Stock, at cost | 5,204 | 6,512 | 7,279 | 6,261 | 7,634 | ||||||||||
| Foreclosed assets and other assets | 510 | 510 | 511 | 629 | 625 | ||||||||||
| Interest receivable | 4,821 | 3,706 | 4,657 | 6,673 | 4,079 | ||||||||||
| Goodwill | 23,239 | 23,239 | 23,239 | 23,239 | 23,239 | ||||||||||
| Cash value of life insurance | 30,294 | 30,103 | 29,121 | 29,291 | 29,183 | ||||||||||
| Mortgage servicing rights | 14,548 | 14,191 | 13,906 | 13,893 | 13,723 | ||||||||||
| Other assets | 12,512 | 13,869 | 11,999 | 15,120 | 15,840 | ||||||||||
| Total assets | $ | 1,342,186 | $ | 1,336,012 | $ | 1,343,249 | $ | 1,326,474 | $ | 1,341,435 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
| Deposits | |||||||||||||||
| Non interest bearing demand | $ | 208,244 | $ | 219,395 | $ | 228,713 | $ | 224,182 | $ | 218,411 | |||||
| Interest bearing demand | 190,857 | 169,171 | 166,413 | 174,729 | 170,282 | ||||||||||
| Savings | 231,855 | 244,157 | 216,965 | 226,077 | 225,065 | ||||||||||
| Money market | 225,650 | 221,362 | 202,605 | 216,565 | 217,681 | ||||||||||
| Time deposits | 258,582 | 258,257 | 255,509 | 243,766 | 239,717 | ||||||||||
| Total deposits | 1,115,188 | 1,112,342 | 1,070,205 | 1,085,319 | 1,071,156 | ||||||||||
| Short-term borrowings | 15,178 | 12,916 | 13,387 | 16,519 | 21,118 | ||||||||||
| Federal Home Loan Bank advances | 35,000 | 35,000 | 83,600 | 59,500 | 81,300 | ||||||||||
| Trust preferred securities | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||
| Subordinated debt net of issuance costs | 19,666 | 19,654 | 19,642 | 19,630 | 19,618 | ||||||||||
| Interest payable | 2,944 | 2,772 | 2,443 | 2,216 | 1,866 | ||||||||||
| Other liabilities | 18,421 | 19,295 | 19,320 | 20,632 | 18,401 | ||||||||||
| Total liabilities | 1,216,707 | 1,212,289 | 1,218,907 | 1,214,126 | 1,223,769 | ||||||||||
| Shareholders’ Equity | |||||||||||||||
| Common stock | 61,319 | 61,319 | 61,319 | 61,319 | 61,319 | ||||||||||
| Additional paid-in capital | 15,195 | 14,978 | 15,124 | 15,037 | 15,154 | ||||||||||
| Retained earnings | 112,104 | 109,938 | 108,486 | 105,521 | 103,725 | ||||||||||
| Accumulated other comprehensive loss | (31,801 | ) | (31,547 | ) | (29,831 | ) | (39,517 | ) | (32,894 | ) | |||||
| Treasury stock | (31,338 | ) | (30,965 | ) | (30,756 | ) | (30,012 | ) | (29,638 | ) | |||||
| Total shareholders’ equity | 125,479 | 123,723 | 124,342 | 112,348 | 117,666 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 1,342,186 | $ | 1,336,012 | $ | 1,343,249 | $ | 1,326,474 | $ | 1,341,435 |
7
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
| At<br> and for the Three Months Ended | Six<br> Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June | March | December | **** | September | **** | June | June | June | ||||||||
| ($ in thousands, except per share & ratios) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||
| Interest<br> income | ||||||||||||||||
| Loans | ||||||||||||||||
| Taxable | $ | 13,883 | $ | 13,547 | $ | 13,438 | $ | 13,128 | $ | 12,715 | $ | 27,430 | $ | 24,841 | ||
| Tax<br> exempt | 124 | 123 | 124 | 122 | 121 | 247 | 237 | |||||||||
| Securities | ||||||||||||||||
| Taxable | 1,610 | 1,593 | 1,526 | 1,507 | 1,524 | 3,203 | 3,059 | |||||||||
| Tax<br> exempt | 37 | 37 | 38 | 39 | 46 | 74 | 93 | |||||||||
| Total<br> interest income | 15,654 | 15,300 | 15,126 | 14,796 | 14,406 | 30,954 | 28,230 | |||||||||
| Interest<br> expense | ||||||||||||||||
| Deposits | 5,208 | 5,090 | 4,398 | 4,194 | 3,538 | 10,298 | 6,116 | |||||||||
| Repurchase<br> agreements & other | 36 | 34 | 39 | 16 | 9 | 70 | 19 | |||||||||
| Federal<br> Home Loan Bank advances | 370 | 613 | 720 | 666 | 664 | 983 | 1,217 | |||||||||
| Trust<br> preferred securities | 187 | 188 | 191 | 189 | 172 | 375 | 336 | |||||||||
| Subordinated<br> debt | 194 | 195 | 194 | 195 | 194 | 389 | 389 | |||||||||
| Total<br> interest expense | 5,995 | 6,120 | 5,542 | 5,260 | 4,577 | 12,115 | 8,077 | |||||||||
| Net<br> interest income | 9,659 | 9,180 | 9,584 | 9,536 | 9,829 | 18,839 | 20,153 | |||||||||
| Provision<br> for credit losses | - | - | (74 | ) | (6 | ) | 145 | - | 395 | |||||||
| Net<br> interest income after provision for loan losses | 9,659 | 9,180 | 9,658 | 9,542 | 9,684 | 18,839 | 19,758 | |||||||||
| Noninterest<br> income | ||||||||||||||||
| Wealth<br> management fees | 848 | 865 | 838 | 837 | 940 | 1,713 | 1,857 | |||||||||
| Customer<br> service fees | 875 | 880 | 844 | 863 | 871 | 1,755 | 1,696 | |||||||||
| Gain<br> on sale of mtg. loans & OMSR | 1,277 | 781 | 747 | 1,207 | 1,056 | 2,058 | 1,655 | |||||||||
| Mortgage<br> loan servicing fees, net | 565 | 763 | 561 | 438 | 494 | 1,328 | 1,102 | |||||||||
| Gain<br> on sale of non-mortgage loans | 105 | 10 | 177 | 10 | 218 | 115 | 242 | |||||||||
| Title<br> insurance revenue | 406 | 266 | 378 | 429 | 455 | 672 | 828 | |||||||||
| Net<br> gain on sales of securities | - | - | 1,453 | - | - | - | - | |||||||||
| Gain<br> (loss) on sale of assets | - | - | 16 | - | 15 | - | 4 | |||||||||
| Other | 310 | 386 | 517 | 379 | 312 | 696 | 643 | |||||||||
| Total<br> noninterest income | 4,386 | 3,951 | 5,531 | 4,163 | 4,361 | 8,337 | 8,027 | |||||||||
| Noninterest<br> expense | ||||||||||||||||
| Salaries<br> and employee benefits | 6,009 | 5,352 | 5,652 | 5,491 | 5,721 | 11,361 | 11,634 | |||||||||
| Net<br> occupancy expense | 707 | 769 | 746 | 764 | 802 | 1,476 | 1,586 | |||||||||
| Equipment<br> expense | 1,060 | 1,077 | 1,027 | 1,068 | 1,002 | 2,137 | 1,983 | |||||||||
| Data<br> processing fees | 727 | 769 | 680 | 648 | 685 | 1,496 | 1,331 | |||||||||
| Professional<br> fees | 615 | 758 | 926 | 623 | 612 | 1,373 | 1,475 | |||||||||
| Marketing<br> expense | 176 | 197 | 182 | 189 | 213 | 373 | 411 | |||||||||
| Telephone<br> and communication expense | 156 | 105 | 132 | 124 | 124 | 261 | 245 | |||||||||
| Postage<br> and delivery expense | 89 | 97 | 167 | 100 | 78 | 186 | 165 | |||||||||
| State,<br> local and other taxes | 230 | 245 | 285 | 218 | 218 | 475 | 446 | |||||||||
| Employee<br> expense | 159 | 178 | 146 | 141 | 156 | 337 | 344 | |||||||||
| Other<br> expenses | 743 | 735 | 426 | 1,115 | 728 | 1,478 | 1,492 | |||||||||
| Total<br> noninterest expense | 10,671 | 10,282 | 10,369 | 10,481 | 10,339 | 20,953 | 21,112 | |||||||||
| Income<br> before income tax expense | 3,374 | 2,849 | 4,820 | 3,224 | 3,706 | 6,223 | 6,673 | |||||||||
| Income<br> tax expense | 261 | 481 | 937 | 537 | 631 | 742 | 1,148 | |||||||||
| Net<br> income | $ | 3,113 | $ | 2,368 | $ | 3,883 | $ | 2,687 | $ | 3,075 | $ | 5,481 | $ | 5,525 | ||
| Common<br> share data: | ||||||||||||||||
| Basic<br> earnings per common share | $ | 0.47 | $ | 0.35 | $ | 0.58 | $ | 0.40 | $ | 0.45 | $ | 0.82 | $ | 0.80 | ||
| Diluted<br> earnings per common share | $ | 0.47 | $ | 0.35 | $ | 0.57 | $ | 0.39 | $ | 0.44 | $ | 0.82 | $ | 0.79 | ||
| Average<br> shares outstanding (in thousands): | ||||||||||||||||
| Basic: | 6,692 | 6,715 | 6,748 | 6,791 | 6,847 | 6,703 | 6,890 | |||||||||
| Diluted: | 6,700 | 6,723 | 6,851 | 6,878 | 6,910 | 6,715 | 6,976 |
8
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS- (Unaudited)
| **** | At and for the Three Months Ended | **** | Six Months Ended | **** | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | June | **** | March | **** | December | **** | September | **** | June | **** | June | **** | June | **** | |||||||
| ($ in thousands, except per share & ratios) | 2024 | **** | 2024 | **** | 2023 | **** | 2023 | **** | 2023 | **** | 2024 | **** | 2023 | **** | |||||||
| SUMMARY OF OPERATIONS | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | |||||||
| Net interest income | $ | 9,659 | $ | 9,180 | $ | 9,584 | $ | 9,536 | $ | 9,829 | $ | 18,839 | $ | 20,153 | |||||||
| Tax-equivalent adjustment | 43 | 43 | 43 | 43 | 44 | 85 | 88 | ||||||||||||||
| Tax-equivalent net interest income | 9,702 | 9,223 | 9,627 | 9,579 | 9,873 | 18,924 | 20,241 | ||||||||||||||
| Provision for credit loss | - | - | (74 | ) | (6 | ) | 145 | - | 395 | ||||||||||||
| Noninterest income | 4,386 | 3,951 | 5,531 | 4,163 | 4,361 | 8,337 | 8,027 | ||||||||||||||
| Total operating revenue | 14,045 | 13,131 | 15,115 | 13,699 | 14,190 | 27,176 | 28,180 | ||||||||||||||
| Noninterest expense | 10,671 | 10,282 | 10,369 | 10,481 | 10,339 | 20,953 | 21,112 | ||||||||||||||
| Pre-tax pre-provision income | 3,374 | 2,849 | 4,746 | 3,218 | 3,851 | 6,223 | 7,068 | ||||||||||||||
| Net income | 3,113 | 2,368 | 3,883 | 2,687 | 3,075 | 5,481 | 5,525 | ||||||||||||||
| PER SHARE INFORMATION: | |||||||||||||||||||||
| Basic earnings per share (EPS) | 0.47 | 0.35 | 0.58 | 0.40 | 0.45 | 0.82 | 0.80 | ||||||||||||||
| Diluted earnings per share | 0.47 | 0.35 | 0.57 | 0.39 | 0.44 | 0.82 | 0.79 | ||||||||||||||
| Common dividends | 0.140 | 0.135 | 0.135 | 0.130 | 0.130 | 0.275 | 0.255 | ||||||||||||||
| Book value per common share | 18.80 | 18.46 | 18.50 | 16.59 | 17.30 | 18.80 | 17.30 | ||||||||||||||
| Tangible book value per common share (TBV) | 15.26 | 14.93 | 14.98 | 13.09 | 13.81 | 15.26 | 13.81 | ||||||||||||||
| Market price per common share | 14.00 | 13.78 | 15.35 | 13.50 | 12.62 | 14.00 | 12.62 | ||||||||||||||
| Market price to TBV | 91.8 | % | 92.3 | % | 102.5 | % | 103.1 | % | 91.4 | % | 91.8 | % | 91.4 | % | |||||||
| Market price to trailing 12 month EPS | 7.9 | 7.9 | 8.8 | 8.0 | 7.1 | 7.9 | 7.1 | ||||||||||||||
| PERFORMANCE RATIOS: | |||||||||||||||||||||
| Return on average assets (ROAA) | 0.93 | % | 0.71 | % | 1.17 | % | 0.80 | % | 0.91 | % | 0.82 | % | 0.82 | % | |||||||
| Pre-tax pre-provision ROAA | 1.01 | % | 0.85 | % | 1.43 | % | 0.96 | % | 1.14 | % | 1.00 | % | 1.14 | % | |||||||
| Return on average equity (ROE) | 10.16 | % | 7.70 | % | 13.23 | % | 9.25 | % | 10.32 | % | 9.02 | % | 9.01 | % | |||||||
| Return on average tangible equity | 12.59 | % | 9.53 | % | 16.57 | % | 11.62 | % | 12.89 | % | 11.21 | % | 11.18 | % | |||||||
| Efficiency ratio | 75.86 | % | 78.17 | % | 68.44 | % | 79.00 | % | 72.71 | % | 76.98 | % | 74.77 | % | |||||||
| Earning asset yield | 5.02 | % | 4.97 | % | 4.89 | % | 4.78 | % | 4.61 | % | 4.96 | % | 4.54 | % | |||||||
| Cost of interest bearing liabilities | 2.47 | % | 2.55 | % | 2.33 | % | 2.18 | % | 1.90 | % | 2.51 | % | 1.69 | % | |||||||
| Net interest margin | 3.10 | % | 2.98 | % | 3.10 | % | 3.08 | % | 3.15 | % | 3.02 | % | 3.24 | % | |||||||
| Tax equivalent effect | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.02 | % | |||||||
| Net interest margin, tax equivalent | 3.11 | % | 2.99 | % | 3.11 | % | 3.09 | % | 3.16 | % | 3.04 | % | 3.26 | % | |||||||
| Non interest income/Average assets | 1.31 | % | 1.19 | % | 1.67 | % | 1.24 | % | 1.30 | % | 1.25 | % | 1.20 | % | |||||||
| Non interest expense/Average assets | 3.18 | % | 3.08 | % | 3.12 | % | 3.13 | % | 3.07 | % | 3.13 | % | 3.15 | % | |||||||
| Net noninterest expense/Average assets | -1.87 | % | -1.90 | % | -1.46 | % | -1.89 | % | -1.78 | % | -1.89 | % | -1.95 | % | |||||||
| ASSET QUALITY RATIOS: | |||||||||||||||||||||
| Gross charge-offs | - | 66 | 5 | 12 | 32 | 66 | 101 | ||||||||||||||
| Recoveries | 16 | 9 | 1 | 7 | 10 | 25 | 18 | ||||||||||||||
| Net charge-offs | (16 | ) | 57 | 4 | 5 | 22 | 41 | 83 | |||||||||||||
| Nonperforming loans/Total loans | 0.47 | % | 0.25 | % | 0.28 | % | 0.34 | % | 0.30 | % | 0.47 | % | 0.30 | % | |||||||
| Nonperforming assets/Loans & OREO | 0.52 | % | 0.30 | % | 0.33 | % | 0.40 | % | 0.36 | % | 0.52 | % | 0.36 | % | |||||||
| Nonperforming assets/Total assets | 0.39 | % | 0.22 | % | 0.25 | % | 0.30 | % | 0.26 | % | 0.39 | % | 0.26 | % | |||||||
| Allowance for credit loss/Nonperforming loans | 329.78 | % | 642.69 | % | 560.18 | % | 474.32 | % | 542.78 | % | 329.78 | % | 542.78 | % | |||||||
| Allowance for credit loss/Total loans | 1.55 | % | 1.58 | % | 1.58 | % | 1.60 | % | 1.60 | % | 1.55 | % | 1.60 | % | |||||||
| Net loan charge-offs/Average loans (ann.) | (0.01 | )% | 0.02 | % | 0.00 | % | 0.00 | % | 0.01 | % | 0.01 | % | 0.02 | % | |||||||
| CAPITAL & LIQUIDITY RATIOS: | |||||||||||||||||||||
| Loans/Deposits | 90.15 | % | 89.14 | % | 93.46 | % | 91.13 | % | 91.94 | % | 90.15 | % | 91.94 | % | |||||||
| Equity/Assets | 9.35 | % | 9.26 | % | 9.26 | % | 8.47 | % | 8.77 | % | 9.35 | % | 8.77 | % | |||||||
| Tangible equity/Tangible assets | 7.72 | % | 7.63 | % | 7.63 | % | 6.81 | % | 7.13 | % | 7.72 | % | 7.13 | % | |||||||
| Common equity tier 1 ratio (Bank) | 13.89 | % | 13.84 | % | 13.42 | % | 13.56 | % | 13.18 | % | 13.89 | % | 13.18 | % | |||||||
| END OF PERIOD BALANCES | |||||||||||||||||||||
| Total assets | 1,342,186 | 1,336,012 | 1,343,249 | 1,326,474 | 1,341,435 | 1,342,186 | 1,341,435 | ||||||||||||||
| Total loans | 1,005,390 | 991,552 | 1,000,212 | 989,021 | 984,824 | 1,005,390 | 984,824 | ||||||||||||||
| Deposits | 1,115,188 | 1,112,342 | 1,070,205 | 1,085,319 | 1,071,156 | 1,115,188 | 1,071,156 | ||||||||||||||
| Shareholders equity | 125,479 | 123,723 | 124,342 | 112,348 | 117,666 | 125,479 | 117,666 | ||||||||||||||
| Goodwill and intangibles | 23,630 | 23,646 | 23,662 | 23,687 | 23,710 | 23,630 | 23,710 | ||||||||||||||
| Tangible equity | 101,849 | 100,077 | 100,680 | 88,661 | 93,956 | 101,849 | 93,956 | ||||||||||||||
| Mortgage servicing portfolio | 1,389,805 | 1,371,713 | 1,366,667 | 1,367,209 | 1,353,904 | 1,389,805 | 1,353,904 | ||||||||||||||
| Wealth/Brokerage assets under care | 525,713 | 525,517 | 501,829 | 478,236 | 499,255 | 525,713 | 499,255 | ||||||||||||||
| Total assets under care | 3,257,704 | 3,233,242 | 3,211,745 | 3,171,919 | 3,194,594 | 3,257,704 | 3,194,594 | ||||||||||||||
| Full-time equivalent employees | 249 | 245 | 251 | 252 | 253 | 249 | 253 | ||||||||||||||
| Period end common shares outstanding | 6,676 | 6,702 | 6,720 | 6,773 | 6,803 | 6,676 | 6,803 | ||||||||||||||
| Market capitalization (all) | 93,458 | 92,359 | 103,147 | 91,437 | 85,857 | 93,458 | 85,857 | ||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||
| Total assets | 1,342,847 | 1,333,236 | 1,327,415 | 1,339,870 | 1,346,010 | 1,337,244 | 1,341,918 | ||||||||||||||
| Total earning assets | 1,246,099 | 1,230,736 | 1,236,165 | 1,239,145 | 1,248,813 | 1,246,956 | 1,243,540 | ||||||||||||||
| Total loans | 1,005,018 | 993,310 | 992,337 | 989,089 | 988,348 | 999,164 | 979,629 | ||||||||||||||
| Deposits | 1,120,367 | 1,091,803 | 1,084,939 | 1,095,414 | 1,100,344 | 1,106,633 | 1,098,647 | ||||||||||||||
| Shareholders equity | 122,510 | 123,058 | 117,397 | 116,165 | 119,177 | 121,474 | 122,601 | ||||||||||||||
| Goodwill and intangibles | 23,638 | 23,654 | 23,675 | 23,698 | 23,721 | 23,646 | 23,732 | ||||||||||||||
| Tangible equity | 98,872 | 99,404 | 93,722 | 92,467 | 95,456 | 97,828 | 98,869 | ||||||||||||||
| Average basic shares outstanding | 6,692 | 6,715 | 6,748 | 6,791 | 6,847 | 6,703 | 6,890 | ||||||||||||||
| Average diluted shares outstanding | 6,700 | 6,723 | 6,851 | 6,878 | 6,910 | 6,715 | 6,976 |
9
SB FINANCIAL GROUP, INC.
Rate Volume Analysis- (Unaudited)
For the Three MonthsEnded June 30, 2024 and 2023
| **** | Three Months Ended June 30, 2024 | **** | Three Months Ended June 30, 2023 | **** | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | Average | **** | **** | Average | **** | Average | **** | **** | Average | **** | ||||||
| ($ in thousands) | Balance | **** | Interest | Rate | **** | Balance | **** | Interest | Rate | **** | ||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | ||||||
| Taxable<br> securities/cash | $ | 236,320 | $ | 1,610 | 2.73 | % | $ | 252,899 | $ | 1,524 | 2.41 | % | ||||
| Nontaxable<br> securities | 4,761 | 37 | 3.11 | % | 7,566 | 46 | 2.43 | % | ||||||||
| Loans,<br> net | 1,005,018 | 14,007 | 5.57 | % | 988,348 | 12,836 | 5.19 | % | ||||||||
| Total<br> earning assets | 1,246,099 | 15,654 | 5.02 | % | 1,248,813 | 14,406 | 4.61 | % | ||||||||
| Cash<br> and due from banks | 4,448 | 3,952 | ||||||||||||||
| Allowance<br> for loan losses | (15,647 | ) | (15,556 | ) | ||||||||||||
| Premises<br> and equipment | 20,978 | 22,529 | ||||||||||||||
| Other<br> assets | 86,969 | 86,272 | ||||||||||||||
| Total<br> assets | $ | 1,342,847 | $ | 1,346,010 | ||||||||||||
| Liabilities | ||||||||||||||||
| Savings,<br> MMDA and interest bearing demand | $ | 637,561 | $ | 2,776 | 1.74 | % | $ | 621,999 | $ | 1,850 | 1.19 | % | ||||
| Time<br> deposits | 257,359 | 2,432 | 3.78 | % | 239,532 | 1,688 | 2.82 | % | ||||||||
| Repurchase<br> agreements & other | 12,050 | 36 | 1.20 | % | 15,064 | 9 | 0.24 | % | ||||||||
| Advances<br> from Federal Home Loan Bank | 35,374 | 370 | 4.18 | % | 57,495 | 664 | 4.62 | % | ||||||||
| Trust<br> preferred securities | 10,310 | 187 | 7.26 | % | 10,310 | 172 | 6.67 | % | ||||||||
| Subordinated<br> debt | 19,658 | 194 | 3.95 | % | 19,610 | 194 | 3.96 | % | ||||||||
| Total<br> interest bearing liabilities | 972,312 | 5,995 | 2.47 | % | 964,010 | 4,577 | 1.90 | % | ||||||||
| Non<br> interest bearing demand | 225,447 | - | 238,813 | - | ||||||||||||
| Total<br> funding | 1,197,759 | 2.00 | % | 1,202,823 | 1.52 | % | ||||||||||
| Other<br> liabilities | 22,578 | 20,301 | ||||||||||||||
| Total<br> liabilities | 1,220,337 | 1,223,124 | ||||||||||||||
| Equity | 122,510 | 122,886 | ||||||||||||||
| Total<br> liabilities and equity | $ | 1,342,847 | $ | 1,346,010 | - | |||||||||||
| Net<br> interest income | $ | 9,659 | $ | 9,829 | ||||||||||||
| Net<br> interest income as a percent of average interest-earning assets - GAAP measure | 3.10 | % | 3.15 | % | ||||||||||||
| Net<br> interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis | 3.11 | % | 3.16 | % |
10
| **** | Six Months Ended June 30, 2024 | **** | Six Months Ended June 30, 2023 | **** | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| **** | Average | **** | **** | Average | **** | Average | **** | **** | Average | **** | ||||||
| **** | Balance | **** | Interest | Rate | **** | Balance | **** | Interest | Rate | **** | ||||||
| Assets | ||||||||||||||||
| Taxable securities/cash | $ | 243,032 | $ | 3,203 | 2.64 | % | $ | 256,250 | $ | 3,059 | 2.39 | % | ||||
| Nontaxable securities | 4,760 | 74 | 3.11 | % | 7,661 | 93 | 2.43 | % | ||||||||
| Loans, net | 999,164 | 27,677 | 5.54 | % | 979,629 | 25,078 | 5.12 | % | ||||||||
| Total earning assets | 1,246,956 | 30,954 | 4.96 | % | 1,243,540 | 28,230 | 4.54 | % | ||||||||
| Cash and due from banks | 4,479 | 4,019 | ||||||||||||||
| Allowance for loan losses | (15,739 | ) | (15,162 | ) | ||||||||||||
| Premises and equipment | 21,130 | 22,692 | ||||||||||||||
| Other assets | 80,418 | 86,829 | ||||||||||||||
| Total assets | $ | 1,337,244 | $ | 1,341,918 | ||||||||||||
| Liabilities | ||||||||||||||||
| Savings, MMDA and interest bearing demand | $ | 621,950 | $ | 5,301 | 1.70 | % | $ | 629,061 | $ | 3,135 | 1.00 | % | ||||
| Time deposits | 257,975 | 4,997 | 3.87 | % | 227,343 | 2,981 | 2.62 | % | ||||||||
| Repurchase agreements & Other | 14,021 | 70 | 1.00 | % | 16,832 | 19 | 0.23 | % | ||||||||
| Advances from Federal Home Loan Bank | 43,202 | 983 | 4.55 | % | 53,359 | 1,217 | 4.56 | % | ||||||||
| Trust preferred securities | 10,310 | 375 | 7.27 | % | 10,310 | 336 | 6.52 | % | ||||||||
| Subordinated debt | 19,652 | 389 | 3.96 | % | 19,604 | 389 | 3.97 | % | ||||||||
| Total interest bearing liabilities | 967,110 | 12,115 | 2.51 | % | 956,509 | 8,077 | 1.69 | % | ||||||||
| Non interest bearing demand | 226,708 | 2.03 | % | 242,243 | 1.35 | % | ||||||||||
| Total funding | 1,193,818 | 1,198,752 | ||||||||||||||
| Other liabilities | 27,863 | 20,565 | ||||||||||||||
| Total liabilities | 1,221,681 | 1,219,317 | ||||||||||||||
| Equity | 121,474 | 122,601 | ||||||||||||||
| Total liabilities and equity | $ | 1,343,155 | $ | 1,341,918 | ||||||||||||
| Net interest income | $ | 18,839 | $ | 20,153 | ||||||||||||
| Net interest income as a percent of average interest-earning assets - GAAP measure | 3.02 | % | 3.24 | % | ||||||||||||
| Net interest income as a percent of average<br> interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis | 3.04 | % | 3.26 | % |
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| **** | Three Months Ended | **** | Six Months Ended | **** | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP reconciliation ($ in thousands, except per share & ratios) | June 30, 2024 | **** | June 30, 2023 | **** | June 30, 2024 | **** | June 30, 2023 | **** | ||||
| Total Operating Revenue | $ | 14,045 | $ | 14,190 | $ | 27,176 | $ | 28,180 | ||||
| Adjustment to (deduct)/add OMSR recapture/impairment * | (38 | ) | 16 | (219 | ) | (39 | ) | |||||
| Adjusted Total Operating Revenue | 14,007 | 14,206 | 26,957 | 28,141 | ||||||||
| Income before Income Taxes | 3,374 | 3,706 | 6,223 | 6,673 | ||||||||
| Adjustment for OMSR * | (38 | ) | 16 | (219 | ) | (39 | ) | |||||
| Adjusted Income before Income Taxes | 3,336 | 3,722 | 6,004 | 6,634 | ||||||||
| Provision for Income Taxes | 261 | 631 | 742 | 1,148 | ||||||||
| Adjustment for OMSR ** | (8 | ) | 3 | (46 | ) | (8 | ) | |||||
| Adjusted Provision for Income Taxes | 253 | 634 | 696 | 1,140 | ||||||||
| Net Income | 3,113 | 3,075 | 5,481 | 5,525 | ||||||||
| Adjustment for OMSR * | (30 | ) | 13 | (173 | ) | (31 | ) | |||||
| Adjusted Net Income | 3,083 | 3,088 | 5,308 | 5,494 | ||||||||
| Diluted Earnings per Share | 0.47 | 0.44 | 0.82 | 0.79 | ||||||||
| Adjustment for OMSR * | (0.01 | ) | 0.01 | (0.03 | ) | (0.00 | ) | |||||
| Adjusted Diluted Earnings per Share | $ | 0.46 | $ | 0.45 | $ | 0.79 | $ | 0.79 | ||||
| Return on Average Assets | 0.93 | % | 0.91 | % | 0.82 | % | 0.82 | % | ||||
| Adjustment for OMSR * | -0.01 | % | 0.00 | % | -0.01 | % | 0.00 | % | ||||
| Adjusted Return on Average Assets | 0.92 | % | 0.92 | % | 0.81 | % | 0.82 | % | ||||
| * | valuation adjustment to the Company’s mortgage servicing<br>rights | |||||||||||
| --- | --- | |||||||||||
| ** | tax effect is calculated using a 21% statutory federal corporate<br>income tax rate | |||||||||||
| --- | --- |
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