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) April 29, 2022 (April 28, 2022)
SB FINANCIAL GROUP, INC
(Exact name of registrant as specified in its charter)
| Ohio | 0-13507 | 34-1395608 |
|---|---|---|
| (State or other jurisdiction <br><br>of incorporation) | (Commission File Number) | (IRS Employer<br><br><br><br> <br>Identification No.) |
| 401 Clinton Street, Defiance, OH | 43512 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip 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 communications pursuant to Rule 425 under the Securities<br>Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange<br>Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b)<br>under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c)<br>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<br>Shares, No Par Value 7,163,935 Outstanding at April 29, 2022 | SBFG | The NASDAQ Stock Market, LLC<br><br> <br>(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 April 28, 2022, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the first quarter 2022. A copy of the April 28, 2022 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 April 28, 2022, reporting financial results for the first quarter 2021. |
| 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: April 29, 2022 | By: | /s/ Anthony V. Cosentino |
| Anthony V. Cosentino | ||
| Chief Financial Officer |
-2-
INDEX TO EXHIBITS
Current Report on Form 8-K
Dated April 29, 2022
SB Financial Group, Inc.
| Exhibit No. | Description |
|---|---|
| 99.1 | News release issued by SB Financial Group, Inc. on April 28, 2022, reporting financial results for the first quarter 2021. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
-3-
Exhibit 99.1
SB Financial Group Announces First Quarter 2022Results
DEFIANCE, OH, April 28, 2022 -- 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 first quarter ended March 31, 2022.
First quarter 2022 highlights over the prior-year first quarter include:
| ● | Net<br> income of $2.8 million; diluted earnings per share (“EPS”) of $0.40 reflecting<br> a 58.8 percent decrease year over year |
|---|---|
| ● | Adjusted<br> net income, excluding the positive impact of the Originated Mortgage Servicing Rights (“OMSR”)<br> recovery of $890,000 was $2.1 million, with EPS of $0.30 |
| --- | --- |
| ● | Mortgage<br> origination volume of $97.4 million, reflects a decrease of $58.4 million, or 37.5 percent |
| --- | --- |
The twelve months ended March 31, 2022 over the prior-year twelve months include:
| ● | Loans<br> increased $56.1 million, or 7.1 percent year over year excluding the impact of Paycheck Protection<br> Program (“PPP”) loan balances in 2022 and 2021 of $0.8 and $54.4 million, respectively | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| ● | Deposits<br> increased by $17.9 million, or 1.6 percent to $1.14 billion | ||||||||
| --- | --- | ||||||||
| Highlights | Three Months Ended | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ($ in thousands, except per share & ratios) | Mar. 2022 | Mar. 2021 | % Change | ||||||
| Operating revenue | $ | 14,279 | $ | 20,547 | -30.5 | % | |||
| Interest income | 9,395 | 10,705 | -12.2 | % | |||||
| Interest expense | 918 | 1,080 | -15.0 | % | |||||
| Net interest income | 8,477 | 9,625 | -11.9 | % | |||||
| Provision for loan losses | - | 750 | -100.0 | % | |||||
| Noninterest income | 5,802 | 10,922 | -46.9 | % | |||||
| Noninterest expense | 10,859 | 10,909 | -0.5 | % | |||||
| Net income | 2,813 | 7,081 | -60.3 | % | |||||
| Earnings per diluted share | 0.40 | 0.97 | -58.8 | % | |||||
| Return on average assets | 0.83 | % | 2.21 | % | -62.4 | % | |||
| Return on average equity | 8.08 | % | 19.78 | % | -59.2 | % | |||
| Non-GAAP Measures | |||||||||
| Adjusted net income | $ | 2,110 | $ | 4,943 | -57.3 | % | |||
| Adjusted diluted EPS | 0.30 | 0.68 | -55.9 | % |
“We had a solid start to the year, with positive loan growth and meaningful mortgage volume considering the rate headwinds” said Mark A. Klein, Chairman, President, and CEO of SB Financial. “Asset quality remained strong with minimal net charge-offs in the quarter and the completion of the sale of the large OREO property.”
RESULTS OF OPERATIONS
Consolidated Revenue
Total operating revenue, consisting of net interest income and noninterest income, of $14.3 million was down 30.5 percent from the first quarter of 2021, and down 8.9 percent from the linked quarter.
| ● | Net<br> interest income was down from the year-ago quarter by 11.9 percent, and down 6.6 percent<br> from the linked quarter as the impact of PPP forgiveness declined. |
|---|---|
| ● | Net<br> interest margin on a fully taxable equivalent (“FTE”) basis was down from the<br> year-ago and linked quarter by 53 and 21 basis points respectively, as cash balances continued<br> to be higher than normal, and PPP balances were down to $792,000 at March 31, 2022. |
| --- | --- |
| ● | Noninterest<br> income was down 46.9 percent from the year ago quarter due to lower mortgage volume and gain<br> on sale yields. The year over year impact of the OMSR recapture decreased $1.8 million. |
| --- | --- |
Mortgage****Loan Business
Mortgage loan originations for the first quarter of 2022 were $97.4 million, down $58.4 million, or 37.5 percent, from the year-ago quarter. Total sales of originated loans were $72.2 million, down $64.6 million, or 47.2 percent, from the year-ago quarter. The Company’s mix of origination continued to move away from refinance in the quarter, as new purchase and construction lending was $61.5 million (63 percent) of volume, with external refinance at $22.1 million (23 percent) and internal refinance at $13.8 million (14 percent).
Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.9 million for the first quarter of 2022, compared to $8.2 million for the year-ago quarter. The mortgage servicing valuation adjustment for the first quarter of 2022 was a positive $890,000, compared to a positive adjustment of $2.7 million for the first quarter of 2021. The aggregate servicing valuation impairment ended the quarter at $566,000. The servicing portfolio at March 31, 2022, was $1.38 billion, up $71.5 million, or 5.5 percent, from $1.30 billion at March 31, 2021.
Mr. Klein noted, “Mortgage originations of $97 million reflected the decline in refinance volume, which was down from the linked quarter and the prior year. We recaptured nearly $900,000 on our service rights impairment in the quarter due to the sharp increase in rates. We remain committed to the residential mortgage business line as it continues to be a gateway into more households, and an opportunity to deepen our level of services to existing ones.”
| Mortgage Banking | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Mar. 2022 | Dec. 2021 | Sep. 2021 | Jun. 2021 | Mar. 2021 | ||||||||||
| Mortgage originations | $ | 97,394 | $ | 126,611 | $ | 152,623 | $ | 164,883 | $ | 155,836 | |||||
| Mortgage sales | 72,154 | 110,543 | 123,083 | 119,064 | 136,708 | ||||||||||
| Mortgage servicing portfolio | 1,375,554 | 1,362,962 | 1,341,439 | 1,323,804 | 1,304,097 | ||||||||||
| Mortgage servicing rights | 13,135 | 12,034 | 11,194 | 10,678 | 10,490 | ||||||||||
| Mortgage servicing revenue | |||||||||||||||
| Loan servicing fees | 861 | 850 | 850 | 830 | 859 | ||||||||||
| OMSR amortization | (547 | ) | (807 | ) | (943 | ) | (948 | ) | (1,187 | ) | |||||
| Net administrative fees | 314 | 43 | (93 | ) | (118 | ) | (328 | ) | |||||||
| OMSR valuation adjustment | 890 | 581 | 248 | (99 | ) | 2,706 | |||||||||
| Net loan servicing fees | 1,204 | 624 | 155 | (217 | ) | 2,378 | |||||||||
| Gain on sale of mortgages | 1,676 | 3,194 | 3,947 | 4,255 | 5,859 | ||||||||||
| Mortgage banking revenue, net | $ | 2,880 | $ | 3,818 | $ | 4,102 | $ | 4,038 | $ | 8,237 |
2
Noninterest Income and Noninterest Expense
SB Financial’s noninterest income for the quarter was down 47 percent from the prior year period, primarily due to the decline in net mortgage banking revenue. The mortgage loan gain on sale yields were down 197 basis points from the prior year and the volume of loans sold was down due to volume and the retention of a higher percentage of originations placed on the Company’s balance sheet. Wealth management revenue was up nearly 5 percent from the prior year due to higher retention levels and growth in the equity sector. SB Financial’s Title Agency grew revenue in the quarter to $602,000, up by nearly 16 percent from the prior year period.
For the first quarter of 2022, noninterest expense of $10.9 million was down 0.5 percent from the prior year period. The flat expense relative to the prior year was due to mortgage activity and open positions, offset by higher spending on technology.
| Noninterest Income / Noninterest Expense | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except ratios) | Mar. 2022 | Dec. 2021 | Sep. 2021 | Jun. 2021 | Mar. 2021 | ||||||||||
| Noninterest Income (NII) | $ | 5,802 | $ | 6,589 | $ | 6,649 | $ | 6,537 | $ | 10,922 | |||||
| NII / Total Revenue | 40.6 | % | 42.1 | % | 39.9 | % | 41.7 | % | 53.2 | % | |||||
| NII / Average Assets | 1.7 | % | 2.0 | % | 2.0 | % | 2.0 | % | 3.4 | % | |||||
| Total Revenue Growth | -46.9 | % | -13.7 | % | -15.3 | % | -10.3 | % | 91.9 | % | |||||
| Noninterest Expense (NIE) | $ | 10,859 | $ | 11,567 | $ | 11,256 | $ | 11,076 | $ | 10,909 | |||||
| Efficiency Ratio | 75.9 | % | 73.7 | % | 67.4 | % | 70.5 | % | 53.0 | % | |||||
| NIE / Average Assets | 3.2 | % | 3.5 | % | 3.4 | % | 3.3 | % | 3.4 | % | |||||
| Net Noninterest Expense/Avg. Assets | -1.5 | % | -1.5 | % | -1.4 | % | -1.4 | % | 0.0 | % | |||||
| Total Expense Growth | -0.5 | % | 8.3 | % | -0.7 | % | -5.0 | % | 16.0 | % |
3
Balance Sheet
Total assets as of March 31, 2022, were $1.34 billion, up $9.3 million, or 0.7 percent, year over year due to higher deposit levels, driven by remaining PPP related funds and lower consumer spending. Total shareholders’ equity as of March 31, 2022, was $132.6 million, down 7.9 percent year over year, and represented 9.9 percent of total assets. Total equity reflected common stock repurchases and unrealized net losses on securities available for sale, which reduced other comprehensive income by $11.8 million in the first three months of this year. Tangible book value declined due to the above as well as the 5 percent stock dividend completed in the quarter.
Total loans held for investment were $850.7 million at March 31, 2022, up $2.5 million, or 0.3 percent, from March 31, 2021. Excluding PPP activity from both years, loan balances were up $56.1 million, or 7.1 percent, from the prior year and up $29.2 million, or 3.6 percent, from the end of the linked quarter.
The investment portfolio of $270.6 million, represented 20.3 percent of assets at March 31, 2022, and was up 47.7 percent year over year. Deposit balances of $1.14 billion at March 31, 2022, increased by $17.9 million, or 1.6 percent, since March 31, 2021.
Mr. Klein continued, “Loan growth was a real positive in the quarter as we saw pipeline realization and we were able to reclaim several credits that we had participated out in prior years. We are still seeing a higher level of payoffs and loan pricing has remained very competitive. As we indicated last quarter, we sold the large OREO property during the quarter and now have non-performing assets down to a level of 42 basis points at period end.”
| Loan Balances | Annual | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except ratios) | Mar. 2022 | Dec. 2021 | Sep. 2021 | Jun. 2021 | Mar. 2021 | Growth | ||||||||||||
| Commercial | $ | 124,857 | $ | 122,373 | $ | 138,085 | $ | 149,998 | $ | 179,157 | $ | (54,300 | ) | |||||
| % of Total | 14.7 | % | 14.9 | % | 16.3 | % | 17.6 | % | 21.1 | % | -30.3 | % | ||||||
| Commercial RE | 400,101 | 381,387 | 387,858 | 389,287 | 385,403 | 14,698 | ||||||||||||
| % of Total | 47.0 | % | 46.4 | % | 45.8 | % | 45.8 | % | 45.4 | % | 3.8 | % | ||||||
| Agriculture | 55,741 | 57,473 | 57,374 | 50,895 | 48,405 | 7,336 | ||||||||||||
| % of Total | 6.6 | % | 7.0 | % | 6.8 | % | 6.0 | % | 5.7 | % | 15.2 | % | ||||||
| Residential RE | 214,015 | 206,324 | 207,571 | 203,294 | 176,998 | 37,017 | ||||||||||||
| % of Total | 25.2 | % | 25.1 | % | 24.5 | % | 23.9 | % | 20.9 | % | 20.9 | % | ||||||
| Consumer & Other | 55,957 | 55,157 | 55,660 | 57,039 | 58,213 | (2,256 | ) | |||||||||||
| % of Total | 6.6 | % | 6.7 | % | 6.6 | % | 6.7 | % | 6.9 | % | -3.9 | % | ||||||
| Total Loans | $ | 850,671 | $ | 822,714 | $ | 846,548 | $ | 850,513 | $ | 848,176 | $ | 2,495 | ||||||
| Total Growth Percentage | 0.3 | % | ||||||||||||||||
| Deposit Balances | Annual | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| ($ in thousands, except ratios) | Mar. 2022 | Dec. 2021 | Sep. 2021 | Jun. 2021 | Mar. 2021 | Growth | ||||||||||||
| Non-Int DDA | $ | 252,273 | $ | 247,044 | $ | 258,857 | $ | 240,572 | $ | 273,026 | $ | (20,753 | ) | |||||
| % of Total | 22.2 | % | 22.2 | % | 23.3 | % | 22.0 | % | 24.4 | % | -7.6 | % | ||||||
| Interest DDA | 211,152 | 195,464 | 189,130 | 187,023 | 191,593 | 19,559 | ||||||||||||
| % of Total | 18.6 | % | 17.6 | % | 17.0 | % | 17.1 | % | 17.1 | % | 10.2 | % | ||||||
| Savings | 236,394 | 237,571 | 246,414 | 235,231 | 218,260 | 18,134 | ||||||||||||
| % of Total | 20.8 | % | 21.3 | % | 22.2 | % | 21.6 | % | 19.5 | % | 8.3 | % | ||||||
| Money Market | 289,699 | 276,462 | 258,741 | 255,512 | 249,088 | 40,611 | ||||||||||||
| % of Total | 25.5 | % | 24.8 | % | 23.3 | % | 23.4 | % | 22.2 | % | 16.3 | % | ||||||
| Time Deposits | 148,553 | 156,504 | 158,518 | 172,696 | 188,229 | (39,676 | ) | |||||||||||
| % of Total | 13.1 | % | 14.1 | % | 14.3 | % | 15.8 | % | 16.8 | % | -21.1 | % | ||||||
| Total Deposits | $ | 1,138,071 | $ | 1,113,045 | $ | 1,111,660 | $ | 1,091,034 | $ | 1,120,196 | $ | 17,875 | ||||||
| Total Growth Percentage | 1.6 | % |
4
Asset Quality
SB Financial reported nonperforming assets of $5.6 million as of March 31, 2022, which was down $890,000 or 13.8 percent year over year. The Company recorded $1,000 in net charge-offs in the quarter. The loan loss reserve of $13.8 million is up $478,000 or 3.6 percent year over year and represents 1.62 percent of total loans. OREO balances declined as a result of the sale of a large real estate property.
| Nonperforming Assets | Annual | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except ratios) | Mar. 2022 | Dec. 2021 | Sep. 2021 | Jun. 2021 | Mar. 2021 | Change | ||||||||||||
| Commercial & Agriculture | $ | 142 | $ | 143 | $ | 144 | $ | 375 | $ | 615 | $ | (473 | ) | |||||
| % of Total Com./Ag. loans | 0.08 | % | 0.08 | % | 0.07 | % | 0.19 | % | 0.27 | % | -76.9 | % | ||||||
| Commercial RE | 544 | 554 | 566 | 1,026 | 2,402 | (1,858 | ) | |||||||||||
| % of Total CRE loans | 0.14 | % | 0.15 | % | 0.15 | % | 0.26 | % | 0.62 | % | -77.4 | % | ||||||
| Residential RE | 3,198 | 2,484 | 2,056 | 1,751 | 2,138 | 1,060 | ||||||||||||
| % of Total Res. RE loans | 1.49 | % | 1.20 | % | 0.99 | % | 0.86 | % | 1.21 | % | 49.6 | % | ||||||
| Consumer & Other | 409 | 471 | 422 | 463 | 480 | (71 | ) | |||||||||||
| % of Total Con./Oth. loans | 0.73 | % | 0.85 | % | 0.76 | % | 0.81 | % | 0.82 | % | -14.8 | % | ||||||
| Total Nonaccruing Loans | 4,293 | 3,652 | 3,188 | 3,615 | 5,635 | (1,342 | ) | |||||||||||
| % of Total loans | 0.50 | % | 0.44 | % | 0.38 | % | 0.43 | % | 0.66 | % | -23.8 | % | ||||||
| Accruing Restructured Loans | 762 | 725 | 805 | 758 | 794 | (32 | ) | |||||||||||
| Total Change (%) | -4.0 | % | ||||||||||||||||
| Total Nonaccruing & Restructured Loans | 5,055 | 4,377 | 3,993 | 4,373 | 6,429 | (1,374 | ) | |||||||||||
| % of Total loans | 0.59 | % | 0.53 | % | 0.47 | % | 0.51 | % | 0.76 | % | -21.4 | % | ||||||
| Foreclosed Assets and Other Assets | 527 | 2,104 | 1,601 | 1,603 | 43 | 484 | ||||||||||||
| Total Change (%) | 1125.6 | % | ||||||||||||||||
| Total Nonperforming Assets | $ | 5,582 | $ | 6,481 | $ | 5,594 | $ | 5,976 | $ | 6,472 | $ | (890 | ) | |||||
| % of Total assets | 0.42 | % | 0.49 | % | 0.42 | % | 0.46 | % | 0.49 | % | -13.8 | % |
Webcast and Conference Call
The Company will hold a related conference call and webcast on April 29, 2022, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.
About SB Financial Group
Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 23 offices; 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 24 full-service ATMs. State Bank has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.
In April 2022, SB Financial was named to the Keefe, Bruyette & Woods, Inc. “Bank Honor Roll” of superior performers that consistently reported increased in earnings per share over the last decade. The honor roll review determined that just 17 banks in the U.S., including SB Financial, or 5 percent of all banks screened, qualified for inclusion.
5
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, the duration and scope of the COVID-19 outbreak in the United States and the market areas in which SB Financial and its subsidiaries operate, including the impact to the state and local economies of prolonged shelter in place orders and the pandemic generally, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the non-GAAP items of OMSR impairment and merger related costs from net income to report an adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Investor Contact Information:
Mark A. Klein
Chairman, President and
Chief Executive Officer
Mark.Klein@YourStateBank.com
Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
Tony.Cosentino@YourStateBank.com
6
SB FINANCIAL GROUP, INC.
CONSOLIDATED BALANCESHEETS - (Unaudited)
| March | December | September | June | March | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 130,003 | $ | 149,511 | $ | 138,015 | $ | 154,993 | $ | 206,036 | |||||
| Interest bearing time deposits | 1,894 | 2,643 | 2,651 | 2,906 | 3,562 | ||||||||||
| Available-for-sale securities | 265,311 | 263,259 | 248,815 | 211,756 | 177,918 | ||||||||||
| Loans held for sale | 4,737 | 7,472 | 10,335 | 8,731 | 8,689 | ||||||||||
| Loans, net of unearned income | 850,671 | 822,714 | 846,548 | 850,513 | 848,176 | ||||||||||
| Allowance for loan losses | (13,804 | ) | (13,805 | ) | (13,812 | ) | (13,306 | ) | (13,326 | ) | |||||
| Premises and equipment, net | 23,039 | 23,212 | 23,874 | 24,343 | 23,233 | ||||||||||
| Federal Reserve and FHLB Stock, at cost | 5,303 | 5,303 | 5,303 | 5,303 | 5,303 | ||||||||||
| Foreclosed assets and other assets | 527 | 2,104 | 1,601 | 1,603 | 43 | ||||||||||
| Interest receivable | 2,815 | 2,920 | 2,954 | 3,000 | 3,371 | ||||||||||
| Goodwill | 23,239 | 23,191 | 22,091 | 22,091 | 22,091 | ||||||||||
| Cash value of life insurance | 17,932 | 17,867 | 17,795 | 17,721 | 17,651 | ||||||||||
| Mortgage servicing rights | 13,135 | 12,034 | 11,194 | 10,678 | 10,490 | ||||||||||
| Other assets | 10,328 | 12,430 | 12,361 | 12,175 | 12,630 | ||||||||||
| Total assets | $ | 1,335,130 | $ | 1,330,855 | $ | 1,329,725 | $ | 1,312,507 | $ | 1,325,867 | |||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
| Deposits | |||||||||||||||
| Non interest bearing demand | $ | 252,273 | $ | 247,044 | $ | 258,857 | $ | 240,572 | $ | 273,026 | |||||
| Interest bearing demand | 211,152 | 195,464 | 189,130 | 187,023 | 191,593 | ||||||||||
| Savings | 236,394 | 237,571 | 246,414 | 235,231 | 218,260 | ||||||||||
| Money market | 289,699 | 276,462 | 258,741 | 255,512 | 249,088 | ||||||||||
| Time deposits | 148,553 | 156,504 | 158,518 | 172,696 | 188,229 | ||||||||||
| Total deposits | 1,138,071 | 1,113,045 | 1,111,660 | 1,091,034 | 1,120,196 | ||||||||||
| Short-term borrowings | 19,035 | 15,320 | 20,771 | 25,096 | 24,321 | ||||||||||
| Federal Home Loan Bank advances | 5,500 | 5,500 | 5,500 | 5,500 | 8,000 | ||||||||||
| Trust preferred securities | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | ||||||||||
| Subordinated debt net of issuance costs | 19,558 | 19,546 | 19,534 | 19,522 | - | ||||||||||
| Interest payable | 536 | 299 | 576 | 417 | 489 | ||||||||||
| Other liabilities | 9,483 | 21,906 | 17,082 | 16,611 | 18,585 | ||||||||||
| Total liabilities | 1,202,493 | 1,185,926 | 1,185,433 | 1,168,490 | 1,181,901 | ||||||||||
| Shareholders’ Equity | |||||||||||||||
| Common stock | 61,319 | 54,463 | 54,463 | 54,463 | 54,463 | ||||||||||
| Additional paid-in capital | 14,872 | 14,944 | 14,875 | 14,906 | 14,755 | ||||||||||
| Retained earnings | 94,833 | 99,716 | 97,183 | 93,851 | 90,883 | ||||||||||
| Accumulated other comprehensive income (loss) | (13,659 | ) | (1,845 | ) | (699 | ) | 499 | (457 | ) | ||||||
| Treasury stock | (24,728 | ) | (22,349 | ) | (21,530 | ) | (19,702 | ) | (15,678 | ) | |||||
| Total shareholders’ equity | 132,637 | 144,929 | 144,292 | 144,017 | 143,966 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 1,335,130 | $ | 1,330,855 | $ | 1,329,725 | $ | 1,312,507 | $ | 1,325,867 |
7
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
| At and for the Three Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March | December | September | June | March | ||||||||
| ($ in thousands, except per share & ratios) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||
| Interest income | ||||||||||||
| Loans | ||||||||||||
| Taxable | $ | 8,052 | $ | 8,889 | $ | 9,948 | $ | 9,196 | $ | 9,926 | ||
| Tax exempt | 61 | 59 | 52 | 47 | 48 | |||||||
| Securities | ||||||||||||
| Taxable | 1,235 | 969 | 939 | 835 | 643 | |||||||
| Tax exempt | 47 | 86 | 94 | 85 | 88 | |||||||
| Total interest income | 9,395 | 10,003 | 11,033 | 10,163 | 10,705 | |||||||
| Interest expense | ||||||||||||
| Deposits | 618 | 640 | 709 | 818 | 962 | |||||||
| Repurchase agreements & other | 13 | 7 | 12 | 12 | 11 | |||||||
| Federal Home Loan Bank advances | 39 | 41 | 40 | 51 | 56 | |||||||
| Trust preferred securities | 53 | 49 | 49 | 50 | 51 | |||||||
| Subordinated debt | 195 | 188 | 199 | 75 | - | |||||||
| Total interest expense | 918 | 925 | 1,009 | 1,006 | 1,080 | |||||||
| Net interest income | 8,477 | 9,078 | 10,024 | 9,157 | 9,625 | |||||||
| Provision for loan losses | - | - | 300 | - | 750 | |||||||
| Net interest income after provision for loan losses | 8,477 | 9,078 | 9,724 | 9,157 | 8,875 | |||||||
| Noninterest income | ||||||||||||
| Wealth management fees | 955 | 988 | 959 | 955 | 912 | |||||||
| Customer service fees | 794 | 827 | 812 | 820 | 758 | |||||||
| Gain on sale of mtg. loans & OMSR | 1,676 | 3,194 | 3,947 | 4,255 | 5,859 | |||||||
| Mortgage loan servicing fees, net | 1,204 | 624 | 155 | (217 | ) | 2,378 | ||||||
| Gain on sale of non-mortgage loans | 169 | 44 | 52 | 45 | 17 | |||||||
| Title insurance revenue | 602 | 528 | 508 | 532 | 521 | |||||||
| Gain (loss) on sale of assets | 55 | 1 | 1 | 2 | (2 | ) | ||||||
| Other | 347 | 383 | 215 | 145 | 479 | |||||||
| Total noninterest income | 5,802 | 6,589 | 6,649 | 6,537 | 10,922 | |||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 6,189 | 6,648 | 6,689 | 6,881 | 6,620 | |||||||
| Net occupancy expense | 742 | 846 | 714 | 748 | 740 | |||||||
| Equipment expense | 854 | 899 | 872 | 778 | 732 | |||||||
| Data processing fees | 576 | 721 | 671 | 653 | 534 | |||||||
| Professional fees | 950 | 872 | 817 | 574 | 764 | |||||||
| Marketing expense | 231 | 228 | 201 | 220 | 135 | |||||||
| Telephone and communication expense | 111 | 148 | 140 | 139 | 154 | |||||||
| Postage and delivery expense | 116 | 106 | 100 | 97 | 111 | |||||||
| State, local and other taxes | 278 | 288 | 286 | 278 | 323 | |||||||
| Employee expense | 136 | 163 | 186 | 161 | 153 | |||||||
| Other expenses | 676 | 648 | 580 | 547 | 643 | |||||||
| Total noninterest expense | 10,859 | 11,567 | 11,256 | 11,076 | 10,909 | |||||||
| Income before income tax expense | 3,420 | 4,100 | 5,117 | 4,618 | 8,888 | |||||||
| Income tax expense | 607 | 768 | 1,014 | 857 | 1,807 | |||||||
| Net income | $ | 2,813 | $ | 3,332 | $ | 4,103 | $ | 3,761 | $ | 7,081 | ||
| Common share data: | ||||||||||||
| Basic earnings per common share | $ | 0.40 | $ | 0.49 | $ | 0.59 | $ | 0.53 | $ | 0.97 | ||
| Diluted earnings per common share | $ | 0.40 | $ | 0.49 | $ | 0.58 | $ | 0.52 | $ | 0.97 | ||
| Average shares outstanding (in thousands): | ||||||||||||
| Basic: | 7,035 | 6,906 | 6,966 | 7,148 | 7,317 | |||||||
| Diluted: | 7,100 | 6,970 | 7,017 | 7,200 | 7,335 |
8
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
| ($ in thousands, except per share & ratios) | At and for the Three Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March | December | September | June | March | |||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||
| SUMMARY OF OPERATIONS | |||||||||||||||
| Net interest income | $ | 8,477 | $ | 9,078 | $ | 10,024 | $ | 9,157 | $ | 9,625 | |||||
| Tax-equivalent adjustment | 29 | 39 | 39 | 35 | 36 | ||||||||||
| Tax-equivalent net interest income | 8,506 | 9,117 | 10,063 | 9,192 | 9,661 | ||||||||||
| Provision for loan loss | - | - | 300 | - | 750 | ||||||||||
| Noninterest income | 5,802 | 6,589 | 6,649 | 6,537 | 10,922 | ||||||||||
| Total operating revenue | 14,279 | 15,667 | 16,673 | 15,694 | 20,547 | ||||||||||
| Noninterest expense | 10,859 | 11,567 | 11,256 | 11,076 | 10,909 | ||||||||||
| Pre-tax pre-provision income | 3,420 | 4,100 | 5,417 | 4,618 | 9,638 | ||||||||||
| Pretax income | 3,420 | 4,100 | 5,117 | 4,618 | 8,888 | ||||||||||
| Net income | 2,813 | 3,332 | 4,103 | 3,761 | 7,081 | ||||||||||
| PER SHARE INFORMATION: | |||||||||||||||
| Basic earnings per share (EPS) | 0.40 | 0.49 | 0.59 | 0.53 | 0.97 | ||||||||||
| Diluted earnings per share | 0.40 | 0.49 | 0.58 | 0.52 | 0.97 | ||||||||||
| Common dividends | 0.115 | 0.115 | 0.110 | 0.110 | 0.105 | ||||||||||
| Book value per common share | 18.65 | 21.05 | 20.83 | 20.50 | 19.88 | ||||||||||
| Tangible book value per common share (TBV) | 15.31 | 17.60 | 17.55 | 17.27 | 16.74 | ||||||||||
| Market price per common share | 19.91 | 19.67 | 18.18 | 18.50 | 18.26 | ||||||||||
| Market price to TBV | 130.1 | % | 111.8 | % | 103.6 | % | 107.2 | % | 109.1 | % | |||||
| Market price to trailing 12 month EPS | 10.0 | 7.7 | 6.7 | 6.5 | 6.4 | ||||||||||
| PERFORMANCE RATIOS: | |||||||||||||||
| Return on average assets (ROAA) | 0.83 | % | 0.99 | % | 1.23 | % | 1.13 | % | 2.21 | % | |||||
| Pre-tax pre-provision ROAA | 1.01 | % | 1.22 | % | 1.63 | % | 1.39 | % | 3.01 | % | |||||
| Return on average equity | 8.08 | % | 9.21 | % | 11.35 | % | 10.42 | % | 19.78 | % | |||||
| Return on average tangible equity | 9.75 | % | 10.92 | % | 13.47 | % | 12.37 | % | 23.52 | % | |||||
| Efficiency ratio | 75.93 | % | 73.72 | % | 67.40 | % | 70.46 | % | 53.01 | % | |||||
| Earning asset yield | 2.96 | % | 3.17 | % | 3.25 | % | 3.56 | % | 3.66 | % | |||||
| Cost of interest bearing liabilities | 0.39 | % | 0.40 | % | 0.44 | % | 0.44 | % | 0.50 | % | |||||
| Net interest margin | 2.67 | % | 2.87 | % | 3.20 | % | 2.93 | % | 3.20 | % | |||||
| Tax equivalent effect | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | |||||
| Net interest margin, tax equivalent | 2.68 | % | 2.89 | % | 3.21 | % | 2.94 | % | 3.21 | % | |||||
| Non interest income/Average assets | 1.72 | % | 1.96 | % | 1.99 | % | 1.97 | % | 3.41 | % | |||||
| Non interest expense/Average assets | 3.22 | % | 3.45 | % | 3.38 | % | 3.33 | % | 3.40 | % | |||||
| Net noninterest expense/Average assets | -1.50 | % | -1.48 | % | -1.38 | % | -1.37 | % | 0.00 | % | |||||
| ASSET QUALITY RATIOS: | |||||||||||||||
| Gross charge-offs | 9 | 34 | 24 | 26 | 52 | ||||||||||
| Recoveries | 8 | 27 | 230 | 6 | 54 | ||||||||||
| Net charge-offs | 1 | 7 | (206 | ) | 20 | (2 | ) | ||||||||
| Nonaccruing loans/Total loans | 0.50 | % | 0.44 | % | 0.38 | % | 0.43 | % | 0.66 | % | |||||
| Nonperforming loans/Total loans | 0.59 | % | 0.53 | % | 0.47 | % | 0.51 | % | 0.76 | % | |||||
| Nonperforming assets/Loans & OREO | 0.66 | % | 0.79 | % | 0.66 | % | 0.70 | % | 0.76 | % | |||||
| Nonperforming assets/Total assets | 0.42 | % | 0.49 | % | 0.42 | % | 0.46 | % | 0.49 | % | |||||
| Allowance for loan loss/Nonperforming loans | 273.08 | % | 315.40 | % | 345.91 | % | 304.28 | % | 207.28 | % | |||||
| Allowance for loan loss/Total loans | 1.62 | % | 1.68 | % | 1.63 | % | 1.56 | % | 1.57 | % | |||||
| Net loan charge-offs/Average loans (ann.) | 0.00 | % | 0.00 | % | (0.10 | )% | 0.01 | % | (0.00 | )% | |||||
| Loan loss provision/Net charge-offs | N/M | 0.00 | % | (145.63 | )% | 0.00 | % | (37500.00 | )% | ||||||
| CAPITAL & LIQUIDITY RATIOS: | |||||||||||||||
| Loans/ Deposits | 74.75 | % | 73.92 | % | 76.15 | % | 77.95 | % | 75.72 | % | |||||
| Equity/ Assets | 9.93 | % | 10.89 | % | 10.85 | % | 10.97 | % | 10.86 | % | |||||
| Tangible equity/Tangible assets | 8.30 | % | 9.27 | % | 9.30 | % | 9.41 | % | 9.30 | % | |||||
| Common equity tier 1 ratio (Bank) | 13.71 | % | 13.94 | % | 13.23 | % | 13.11 | % | 13.08 | % | |||||
| END OF PERIOD BALANCES | |||||||||||||||
| Total assets | 1,335,130 | 1,330,855 | 1,329,725 | 1,312,507 | 1,325,867 | ||||||||||
| Total loans | 850,671 | 822,714 | 846,548 | 850,513 | 848,176 | ||||||||||
| Deposits | 1,138,071 | 1,113,045 | 1,111,660 | 1,091,034 | 1,120,196 | ||||||||||
| Stockholders equity | 132,637 | 144,929 | 144,292 | 144,017 | 143,966 | ||||||||||
| Goodwill and intangibles | 23,804 | 23,774 | 22,692 | 22,710 | 22,728 | ||||||||||
| Tangible equity | 108,833 | 121,155 | 121,600 | 121,307 | 121,238 | ||||||||||
| Mortgage servicing portfolio | 1,375,554 | 1,362,962 | 1,341,439 | 1,323,804 | 1,304,097 | ||||||||||
| Wealth/Brokerage assets under care | 560,698 | 618,279 | 588,319 | 600,904 | 576,503 | ||||||||||
| Total assets under care | 3,271,382 | 3,312,096 | 3,259,483 | 3,237,215 | 3,206,467 | ||||||||||
| Full-time equivalent employees | 256 | 269 | 264 | 256 | 246 | ||||||||||
| Period end common shares outstanding | 7,111 | 6,884 | 6,927 | 7,026 | 7,242 | ||||||||||
| Market capitalization (all) | 141,575 | 135,415 | 125,935 | 129,984 | 132,239 | ||||||||||
| AVERAGE BALANCES | |||||||||||||||
| Total assets | 1,350,982 | 1,342,202 | 1,333,369 | 1,329,348 | 1,281,635 | ||||||||||
| Total earning assets | 1,270,218 | 1,263,431 | 1,253,722 | 1,251,213 | 1,203,284 | ||||||||||
| Total loans | 832,825 | 845,078 | 856,486 | 853,794 | 862,898 | ||||||||||
| Deposits | 1,134,234 | 1,123,843 | 1,109,491 | 1,115,186 | 1,073,641 | ||||||||||
| Stockholders equity | 139,214 | 144,749 | 144,565 | 144,315 | 143,167 | ||||||||||
| Goodwill and intangibles | 23,801 | 22,701 | 22,701 | 22,718 | 22,736 | ||||||||||
| Tangible equity | 115,413 | 122,048 | 121,864 | 121,597 | 120,431 | ||||||||||
| Average basic shares outstanding | 7,035 | 6,906 | 6,966 | 7,148 | 7,317 | ||||||||||
| Average diluted shares outstanding | 7,100 | 6,970 | 7,017 | 7,200 | 7,335 |
9
SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
| For the Three Months Ended March 31, 2022 and 2021 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands) | Three Months Ended Mar. 31, 2022 | Three Months Ended Mar. 31, 2021 | ||||||||||||||
| Average | Average | Average | Average | |||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
| Assets | ||||||||||||||||
| Taxable securities/cash | $ | 429,839 | $ | 1,235 | 1.15 | % | $ | 332,824 | $ | 643 | 0.77 | % | ||||
| Nontaxable securities | 7,554 | 47 | 2.49 | % | 7,562 | 88 | 4.65 | % | ||||||||
| Loans, net | 832,825 | 8,113 | 3.90 | % | 862,898 | 9,974 | 4.62 | % | ||||||||
| Total earning assets | 1,270,218 | 9,395 | 2.96 | % | 1,203,284 | 10,705 | 3.56 | % | ||||||||
| Cash and due from banks | 8,156 | 7,775 | ||||||||||||||
| Allowance for loan losses | (13,807 | ) | (12,843 | ) | ||||||||||||
| Premises and equipment | 25,317 | 23,503 | ||||||||||||||
| Other assets | 61,098 | 59,916 | ||||||||||||||
| Total assets | $ | 1,350,982 | $ | 1,281,635 | ||||||||||||
| Liabilities | ||||||||||||||||
| Savings, MMDA and interest bearing demand | $ | 733,095 | $ | 398 | 0.22 | % | $ | 614,802 | $ | 508 | 0.33 | % | ||||
| Time deposits | 155,006 | 220 | 0.57 | % | 206,903 | 454 | 0.88 | % | ||||||||
| Repurchase agreements & other | 25,115 | 13 | 0.21 | % | 24,134 | 11 | 0.18 | % | ||||||||
| Advances from Federal Home Loan Bank | 5,500 | 39 | 2.84 | % | 8,000 | 56 | 2.80 | % | ||||||||
| Trust preferred securities | 10,310 | 53 | 2.06 | % | 10,310 | 51 | 1.98 | % | ||||||||
| Subordinated debt | 19,552 | 195 | 3.99 | % | - | - | 0.00 | % | ||||||||
| Total interest bearing liabilities | 948,578 | 918 | 0.39 | % | 864,149 | 1,080 | 0.50 | % | ||||||||
| Non interest bearing demand | 246,133 | - | 251,936 | - | ||||||||||||
| Total funding | 1,194,711 | 0.31 | % | 1,116,085 | 0.39 | % | ||||||||||
| Other liabilities | 17,057 | 22,383 | ||||||||||||||
| Total liabilities | 1,211,768 | 1,138,468 | ||||||||||||||
| Equity | 139,214 | 143,167 | ||||||||||||||
| Total liabilities and equity | $ | 1,350,982 | $ | 1,281,635 | ||||||||||||
| Net interest income | $ | 8,477 | $ | 9,625 | ||||||||||||
| Net interest income as a percent of average interest-earning assets - GAAP measure | 2.67 | % | 3.20 | % | ||||||||||||
| Net interest income as a percent of average interest-earning assets - non GAAP | 2.68 | % | 3.21 | % | ||||||||||||
| - Computed on a fully tax equivalent (FTE) basis |
10
| Non-GAAP reconciliation | Three Months Ended | |||||
|---|---|---|---|---|---|---|
| ($ in thousands, except per share & ratios) | Mar. 31, 2022 | Mar. 31, 2021 | ||||
| Total Operating Revenue | $ | 14,279 | $ | 20,547 | ||
| Adjustment to (deduct)/add OMSR recapture/impairment* | (889 | ) | (2,706 | ) | ||
| Adjusted Total Operating Revenue | 13,390 | 17,841 | ||||
| Income before Income Taxes | 3,420 | 8,888 | ||||
| Adjustment for OMSR | (889 | ) | (2,706 | ) | ||
| Adjusted Income before Income Taxes | 2,531 | 6,182 | ||||
| Provision for Income Taxes | 607 | 1,807 | ||||
| Adjustment for OMSR ** | (187 | ) | (568 | ) | ||
| Adjusted Provision for Income Taxes | 420 | 1,239 | ||||
| Net Income | 2,813 | 7,081 | ||||
| Adjustment for OMSR & merger expenses | (703 | ) | (2,138 | ) | ||
| Adjusted Net Income | 2,110 | 4,943 | ||||
| Diluted Earnings per Share | 0.40 | 0.97 | ||||
| Adjustment for OMSR & merger expenses | (0.10 | ) | (0.29 | ) | ||
| Adjusted Diluted Earnings per Share | $ | 0.30 | $ | 0.68 | ||
| Return on Average Assets | 0.83 | % | 2.21 | % | ||
| Adjustment for OMSR & merger expenses | -0.21 | % | -0.67 | % | ||
| Adjusted Return on Average Assets | 0.62 | % | 1.54 | % | ||
| * | valuation adjustment to the Company’s mortgage servicing<br>rights | |||||
| --- | --- | |||||
| ** | tax effect is calculated using a 21% statutory federal corporate<br>income tax rate | |||||
| --- | --- |
11