Sb Financial Group, Inc 8-K, filed May 4, 2021

Sb Financial Group, Inc. (SBFG)

8-K 2021-05-04 For: 2021-04-30

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Added on April 08, 2026

About this 8-K

Sb Financial Group, Inc filed this 8-K on May 4, 2021, reporting on events of April 30, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Ohio	0-13507	34-1395608
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

401 Clinton Street, Defiance, OH		43512
(Address of principal executive offices)		(Zip Code)

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on April 30, 2021, reporting financial results for the first quarter 2021.

	SB FINANCIAL GROUP, INC.

Dated: May 4, 2021	By:	/s/ Anthony V. Cosentino
		Anthony V. Cosentino
		Chief Financial Officer

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on April 30, 2021, reporting financial results for the first quarter 2021.

Highlights	Three Months Ended
($ in thousands, except per share & ratios)	Mar. 2021			Mar. 2020			% Change
Operating revenue	$	20,547		$	10,709			91.9	%
Interest income		10,705			10,644			0.6	%
Interest expense		1,080			2,096			-48.5	%
Net interest income		9,625			8,548			12.6	%
Provision for loan losses		750			600			25.0	%
Noninterest income		10,922			2,161			405.4	%
Noninterest expense		10,909			9,406			16.0	%
Net income		7,081			681			939.8	%
Earnings per diluted share		0.97			0.09			977.8	%
Return on average assets		2.21	%		0.26	%		750.0	%
Return on average equity		19.78	%		1.99	%		894.0	%

Non-GAAP Measures
Adjusted net income	$	4,943		$	2,428			103.6	%
Adjusted diluted EPS		0.68			0.31			119.4	%
Adjusted return on average assets		1.54	%		0.92	%		67.4	%
Adjusted pre-tax, pre-provision income		6,932			3,514			97.3	%

Mortgage Banking
($ in thousands)	Mar. 2021			Dec. 2020			Sep. 2020			Jun. 2020			Mar. 2020
Mortgage originations	$	155,836		$	168,997		$	200,158		$	223,671		$	101,365
Mortgage sales		136,708			143,151			166,201			204,628			84,476
Mortgage servicing portfolio		1,304,097			1,299,698			1,293,037			1,261,746			1,216,292
Mortgage servicing rights		10,490			7,759			8,535			8,168			8,974

Mortgage servicing revenue
Loan servicing fees		859			857			813			782			757
OMSR amortization		(1,187	)		(1,283	)		(1,308	)		(1,574	)		(597	)
Net administrative fees		(328	)		(426	)		(495	)		(792	)		160
OMSR valuation adjustment		2,706			(611	)		326			(1,088	)		(2,212	)
Net loan servicing fees		2,378			(1,037	)		(169	)		(1,880	)		(2,052	)
Gain on sale of mortgages		5,859			7,197			8,085			8,119			1,949
Mortgage banking revenue, net	$	8,237		$	6,160		$	7,916		$	6,239		$	(103	)

Noninterest Income / Noninterest Expense
($ in thousands, except ratios)	Mar. 2021			Dec. 2020			Sep. 2020			Jun. 2020			Mar. 2020
Noninterest Income (NII)	$	10,922		$	8,902		$	10,418		$	8,615		$	2,161
NII / Total Revenue		53.2	%		49.0	%		52.9	%		49.3	%		20.2	%
NII / Average Assets		3.4	%		2.9	%		3.4	%		3.0	%		0.8	%
Total Revenue Growth		91.9	%		24.7	%		36.4	%		39.6	%		-5.6	%

Noninterest Expense (NIE)	$	10,909		$	10,684		$	11,335		$	11,662		$	9,406
Efficiency Ratio		53.0	%		58.8	%		57.5	%		66.7	%		87.8	%
NIE / Average Assets		3.4	%		3.5	%		3.7	%		4.0	%		3.5	%
Net Noninterest Expense/Avg. Assets		0.0	%		-0.6	%		-0.3	%		-1.0	%		-2.7	%
Total Expense Growth		16.0	%		5.0	%		19.3	%		28.0	%		9.0	%
Operating Leverage		5.7			4.9			1.9			1.4			-0.6

Loan Balances
($ in thousands, except ratios)	Mar. 2021			Dec. 2020			Sep. 2020			Jun. 2020			Mar. 2020			Annual Growth
Commercial	$	179,157		$	203,256		$	216,667		$	222,108		$	151,538		$	27,619
% of Total		21.1	%		23.3	%		24.5	%		24.6	%		18.2	%		18.2	%
Commercial RE		385,403			370,984			371,947			375,450			378,212			7,191
% of Total		45.4	%		42.5	%		42.0	%		41.6	%		45.5	%		1.9	%
Agriculture		48,405			55,251			57,420			58,817			47,660			745
% of Total		5.7	%		6.3	%		6.5	%		6.5	%		5.7	%		1.6	%
Residential RE		176,998			182,076			178,393			184,684			189,738			(12,740	)
% of Total		20.9	%		20.9	%		20.1	%		20.6	%		22.9	%		-6.7	%
Consumer & Other		58,213			61,156			61,423			60,489			63,616			(5,403	)
% of Total		6.9	%		7.0	%		6.9	%		6.7	%		7.7	%		-8.5	%
Total Loans	$	848,176		$	872,723		$	885,850		$	901,548		$	830,764		$	17,412
Total Growth Percentage																	2.1	%

Deposit Balances
($ in thousands, except ratios)	Mar. 2021			Dec. 2020			Sep. 2020			Jun. 2020			Mar. 2020			Annual Growth
Non-Int DDA	$	273,026		$	251,649		$	225,003		$	229,042		$	170,920		$	102,106
% of Total		24.4	%		24.0	%		22.2	%		23.1	%		19.8	%		59.7	%
Interest DDA		191,593			176,785			164,248			154,143			133,722			57,871
% of Total		17.1	%		16.9	%		16.2	%		15.6	%		15.5	%		43.3	%
Savings		218,260			174,864			169,474			161,182			138,863			79,397
% of Total		19.5	%		16.7	%		16.7	%		16.2	%		16.0	%		57.2	%
Money Market		249,088			216,164			204,862			189,380			169,209			79,879
% of Total		22.2	%		20.6	%		20.2	%		19.1	%		19.6	%		47.2	%
Time Deposits		188,229			229,549			250,428			256,840			251,177			(62,948	)
% of Total		16.8	%		21.9	%		24.7	%		25.9	%		29.2	%		-25.1	%
Total Deposits	$	1,120,196		$	1,049,011		$	1,014,015		$	990,587		$	863,891		$	256,305
Total Growth Percentage																	29.7	%

Nonperforming Assets
($ in thousands, except ratios)	Mar. 2021			Dec. 2020			Sep. 2020			Jun. 2020			Mar. 2020			Annual Change
Commercial & Agriculture	$	615		$	902		$	1,140		$	1,204		$	1,309		$	(694	)
% of Total Com./Ag. loans		0.27	%		0.35	%		0.42	%		0.43	%		0.66	%		-53.0	%
Commercial RE		2,402			2,412			2,475			2,484			1,816			586
% of Total CRE loans		0.62	%		0.65	%		0.67	%		0.66	%		0.48	%		32.3	%
Residential RE		2,138			2,704			2,481			2,538			2,330			(192	)
% of Total Res. RE loans		1.21	%		1.49	%		1.39	%		1.37	%		1.23	%		-8.2	%
Consumer & Other		480			408			313			308			327			153
% of Total Con./Oth. loans		0.82	%		0.67	%		0.51	%		0.51	%		0.51	%		46.8	%
Total Nonaccruing Loans		5,635			6,426			6,409			6,534			5,782			(147	)
% of Total loans		0.66	%		0.74	%		0.72	%		0.72	%		0.70	%		-2.5	%
Accruing Restructured Loans		794			810			789			804			816			(22	)
Total Change (%)																	-2.7	%
Total Nonaccruing & Restructured Loans		6,429			7,236			7,198			7,338			6,598			(169	)
% of Total loans		0.76	%		0.83	%		0.81	%		0.81	%		0.79	%		-2.6	%
Foreclosed Assets		43			23			76			382			85			(42	)
Total Change (%)																	-49.4	%
Total Nonperforming Assets	$	6,472		$	7,259		$	7,274		$	7,720		$	6,683		$	(211	)
% of Total assets		0.49	%		0.58	%		0.60	%		0.64	%		0.61	%		-3.2	%

Loans in COVID Deferral Status
($ in thousands, except ratios)	Mar. 2021			Dec. 2020			Sep. 2020			Jun. 2020			Linked Qtr. Change
Total Commercial	$	4,883		$	23,175		$	36,366		$	142,682		$	(18,292	)
Total Consumer		-			-			28			350			-
Total Portfolio Mortgage		-			-			1,959			10,274			-
Total Balance Sheet Deferrals	$	4,883		$	23,175		$	38,353		$	153,306		$	(18,292	)

% of Total loans		0.58	%		2.66	%		4.33	%		17.00	%		-16.43	%

Total Sold Mortgage	$	5,705		$	11,685		$	42,317		$	41,751		$	(5,980	)

	March			December			September			June			March
($ in thousands)	2021			2020			2020			2020			2020

ASSETS
Cash and due from banks	$	206,036		$	140,690		$	94,641		$	85,661		$	56,393
Interest bearing time deposits		3,562			5,823			8,956			10,542			-
Available-for-sale securities		177,918			149,406			130,315			104,289			107,727
Loans held for sale		8,689			7,234			13,943			13,742			11,328
Loans, net of unearned income		848,176			872,723			885,850			901,548			830,764
Allowance for loan losses		(13,326	)		(12,574	)		(11,793	)		(10,013	)		(8,958	)
Premises and equipment, net		23,233			23,557			23,785			23,662			23,599
Federal Reserve and FHLB Stock, at cost		5,303			5,303			5,303			4,837			4,648
Foreclosed assets held for sale, net		43			23			76			382			85
Interest receivable		3,371			3,799			4,159			4,272			2,940
Goodwill		22,091			22,091			22,091			22,117			17,792
Cash value of life insurance		17,651			17,530			17,453			17,375			17,299
Mortgage servicing rights		10,490			7,759			8,535			8,168			8,974
Other assets		12,630			14,475			14,927			16,354			15,722

Total assets	$	1,325,867		$	1,257,839		$	1,218,241		$	1,202,936		$	1,088,313

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand	$	273,026		$	251,649		$	225,003		$	229,042		$	170,920
Interest bearing demand		191,593			176,785			164,248			154,143			133,722
Savings		218,260			174,864			169,474			161,182			138,863
Money market		249,088			216,164			204,862			189,380			169,209
Time deposits		188,229			229,549			250,428			256,840			251,177

Total deposits		1,120,196			1,049,011			1,014,015			990,587			863,891

Short-term borrowings		24,321			20,189			20,710			23,826			36,881
Federal Home Loan Bank advances		8,000			8,000			8,000			13,000			16,000
Trust preferred securities		10,310			10,310			10,310			10,310			10,310
Interest payable		489			616			946			929			1,131
Other liabilities		18,585			26,790			22,913			26,403			24,195

Total liabilities		1,181,901			1,114,916			1,076,894			1,065,055			952,408

Shareholders’ Equity
Common stock		54,463			54,463			54,463			54,463			54,463
Additional paid-in capital		14,755			14,845			14,782			14,780			14,655
Retained earnings		90,883			84,578			80,012			75,526			72,641
Accumulated other comprehensive income (loss)		(457	)		2,210			2,221			2,320			2,049
Treasury stock		(15,678	)		(13,173	)		(10,131	)		(9,208	)		(7,903	)

Total shareholders’ equity		143,966			142,923			141,347			137,881			135,905

Total liabilities and shareholders’ equity	$	1,325,867		$	1,257,839		$	1,218,241		$	1,202,936		$	1,088,313

($ in thousands, except per share & ratios)	At and for the Three Months Ended
	March			December			September			June			March
Interest income	2021			2020			2020			2020			2020
Loans
Taxable	$	9,926		$	9,816		$	10,179		$	9,945		$	9,795
Tax exempt		48			54			47			59			79
Securities
Taxable		643			632			494			510			692
Tax exempt		88			87			87			81			78

Total interest income		10,705			10,589			10,807			10,595			10,644

Interest expense
Deposits		962			1,218			1,423			1,549			1,880
Repurchase agreements & other		11			10			12			20			28
Federal Home Loan Bank advances		56			58			59			92			100
Trust preferred securities		51			52			54			62			88

Total interest expense		1,080			1,338			1,548			1,723			2,096

Net interest income		9,625			9,251			9,259			8,872			8,548

Provision for loan losses		750			800			1,800			1,300			600

Net interest income after provision for loan losses		8,875			8,451			7,459			7,572			7,948

Noninterest income
Wealth management fees		912			863			839			775			768
Customer service fees		758			728			730			667			682
Gain on sale of mtg. loans & OMSR		5,859			7,197			8,085			8,119			1,949
Mortgage loan servicing fees, net		2,378			(1,037	)		(169	)		(1,880	)		(2,052	)
Gain on sale of non-mortgage loans		17			123			119			107			104
Title insurance revenue		521			522			517			609			265
Gain (loss) on sale of assets		(2	)		181			(52	)		(80	)		(46	)
Other		479			325			349			298			491

Total noninterest income		10,922			8,902			10,418			8,615			2,161

Noninterest expense
Salaries and employee benefits		6,620			6,556			6,995			6,419			5,427
Net occupancy expense		740			782			736			675			698
Equipment expense		732			818			888			780			700
Data processing fees		534			633			586			1,288			548
Professional fees		764			631			695			1,224			757
Marketing expense		135			172			137			141			208
Telephone and communication expense		154			156			142			122			115
Postage and delivery expense		111			108			96			96			115
State, local and other taxes		323			299			331			262			254
Employee expense		153			103			155			93			184
Other expenses		643			426			574			562			400

Total noninterest expense		10,909			10,684			11,335			11,662			9,406

Income before income tax expense		8,888			6,669			6,542			4,525			703

Income tax expense		1,807			1,311			1,292			870			22

Net income available to common shareholders	$	7,081		$	5,358		$	5,250		$	3,655		$	681

Common share data:
Basic earnings per common share	$	0.97		$	0.71		$	0.69		$	0.47		$	0.09

Diluted earnings per common share	$	0.97		$	0.71		$	0.69		$	0.47		$	0.09

Average shares outstanding (in thousands):
Basic:		7,317			7,487			7,607			7,708			7,749
Diluted:		7,335			7,487			7,607			7,708			7,756


($ in thousands)	Three Months Ended Mar. 31, 2021								Three Months Ended Mar. 31, 2020
	Average					Average			Average					Average
Assets	Balance			Interest		Rate			Balance			Interest		Rate

Taxable securities/Cash	$	332,824		$	643		0.77	%	$	146,678		$	692		1.89	%
Nontaxable securities		7,562			88		4.65	%		6,563			78		4.75	%
Loans, net		862,898			9,974		4.62	%		832,975			9,874		4.74	%

Total earning assets		1,203,284			10,705		3.56	%		986,216			10,644		4.32	%

Cash and due from banks		7,775								5,512
Allowance for loan losses		(12,843	)							(8,867	)
Premises and equipment		23,503								23,698
Other assets		59,916								54,806

Total assets	$	1,281,635							$	1,061,365

Liabilities
Savings, MMDA and interest bearing demand	$	614,802		$	508		0.33	%	$	442,438		$	1,083		0.98	%
Time deposits		206,903			454		0.88	%		254,342			797		1.25	%
Repurchase agreements & other		24,134			11		0.18	%		22,537			28		0.50	%
Advances from Federal Home Loan Bank		8,000			56		2.80	%		16,132			100		2.48	%
Trust preferred securities		10,310			51		1.98	%		10,310			88		3.41	%

Total interest bearing liabilities		864,149			1,080		0.50	%		745,759			2,096		1.12	%

Non interest bearing demand		251,936			-					158,492			-

Total funding		1,116,085					0.39	%		904,251					0.93	%

Other liabilities		22,383								20,184

Total liabilities		1,138,468								924,435

Equity		143,167								136,930

Total liabilities and equity	$	1,281,635							$	1,061,365

Net interest income				$	9,625							$	8,548

Net interest income as a percent of average interest-earning assets - GAAP measure							3.20	%							3.47	%

Net interest income as a percent of average interest-earning assets - non GAAP							3.21	%							3.48	%
- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended

($ in thousands, except per share & ratios)	Mar. 31, 2021			Mar. 31, 2020

Total Operating Revenue	$	20,547		$	10,709
Adjustment to (deduct)/add OMSR impairment*		(2,706	)		2,212

Adjusted Total Operating Revenue		17,841			12,921

Income before Income Taxes		8,888			703
Adjustment for OMSR		(2,706	)		2,212

Adjusted Income before Income Taxes		6,182			2,915

Provision for Income Taxes		1,807			22
Adjustment for OMSR**		(568	)		465

Adjusted Provision for Income Taxes		1,239			487

Net Income		7,081			681
Adjustment for OMSR		(2,138	)		1,747

Adjusted Net Income		4,943			2,428

Diluted Earnings per Share		0.97			0.09
Adjustment for OMSR		(0.29	)		0.22

Adjusted Diluted Earnings per Share	$	0.68		$	0.31

Return on Average Assets		2.21	%		0.26	%
Adjustment for OMSR		-0.67	%		0.66	%

Adjusted Return on Average Assets		1.54	%		0.92	%