SB Financial Group Announces Third Quarter 2020 Results
Third quarter 2020 highlights over prior-year third quarter include:
- Net income of
$5.3 million up$1.5 million or 39.6 percent; diluted earnings per share ("EPS") of$0.69 up$0.21 per share or 43.8 percent - Adjusted net income, excluding for the impact of the Originated Mortgage Servicing Rights ("OMSR") recapture of
$0.3 million , of$5.0 million , with adjusted EPS of$0.65 - Mortgage origination volume of
$200.2 million , an increase of$42.2 million , or 26.7 percent - Pre-tax, pre-provision income of
$8.3 million up$2.5 million or 43.2 percent
The nine months ended
- Net income of
$9.6 million ; diluted EPS of$1.25 - Adjusted net income, excluding the impact of OMSR and merger costs of
$3.3 million after- tax, rose to$12.9 million , up$3.2 million or 32.9 percent, with adjusted EPS of$1.67 - Return on Average Assets ("ROA") of 1.12 percent; adjusted ROA of 1.41 percent
Third quarter 2020 trailing twelve-month highlights include:
- Loan growth of
$62.5 million , or 7.6 percent, which includes Paycheck Protection Program ("PPP") loan balances of$82.1 million and loans acquired in the Edon acquisition of$15.7 million . - Deposit growth of
$166.1 million , or 19.6 percent, driven by PPP balances and the Edon acquisition - Mortgage origination volume of
$662.7 million ; servicing portfolio of$1.29 billion , which is up$140.0 million , or 12.1 percent
Highlights |
Three Months Ended |
Nine Months Ended |
|||||
($ in thousands, except per share & ratios) |
|
|
% Change |
|
|
% Change |
|
Operating revenue |
$ 19,677 |
$ 14,424 |
36.4% |
$ 47,873 |
$ 38,287 |
25.0% |
|
Interest income |
10,807 |
11,546 |
-6.4% |
32,046 |
33,195 |
-3.5% |
|
Interest expense |
1,548 |
2,488 |
-37.8% |
5,367 |
6,965 |
-22.9% |
|
Net interest income |
9,259 |
9,058 |
2.2% |
26,679 |
26,230 |
1.7% |
|
Provision for loan losses |
1,800 |
300 |
500.0% |
3,700 |
500 |
640.0% |
|
Noninterest income |
10,418 |
5,366 |
94.1% |
21,194 |
12,057 |
75.8% |
|
Noninterest expense |
11,335 |
9,500 |
19.3% |
32,403 |
27,234 |
19.0% |
|
Net income |
5,250 |
3,762 |
39.6% |
9,586 |
8,615 |
11.3% |
|
Earnings per diluted share |
0.69 |
0.48 |
43.8% |
1.25 |
1.08 |
15.7% |
|
Return on average assets |
1.73% |
1.44% |
20.1% |
1.12% |
1.13% |
-0.9% |
|
Return on average equity |
15.01% |
11.24% |
33.5% |
9.74% |
8.67% |
12.3% |
|
Non-GAAP Measures |
|||||||
Adjusted net income |
$ 4,992 |
$ 3,762 |
32.7% |
$ 12,916 |
$ 9,720 |
32.9% |
|
Adjusted diluted EPS |
0.65 |
0.48 |
35.4% |
1.67 |
1.22 |
36.9% |
|
Adjusted return on average assets |
1.64% |
1.44% |
13.9% |
1.41% |
1.23% |
14.6% |
|
Adjusted pre-tax, pre-provision income |
8,016 |
4,924 |
62.8% |
19,685 |
12,451 |
58.1% |
"Mortgage volume continued its strong growth in the third quarter, which resulted in our net income rising from the prior year by over 40 percent." said
RESULTS OF OPERATIONS
Consolidated Revenue
Total operating revenue, consisting of net interest income and noninterest income, was up 36.4 percent from the third quarter of 2019, and up 12.5 percent to the linked quarter.
- Net interest income was up 2.2 percent from the year-ago quarter, and up 4.4 percent from the linked quarter.
- Net interest margin on a fully taxable equivalent basis (FTE) was down from the year-ago quarter by 52 basis points but up 9 basis points from the linked quarter as transactional cash balances were higher and PPP loans made marginal contribution.
- Noninterest income was up 94 percent year over year and 21 percent from the linked quarter.
Mortgage Loan Business
Mortgage loan originations for the third quarter of 2020 were
Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was
Mortgage Banking |
|||||
($ in thousands) |
|
|
|
|
|
Mortgage originations |
$ 200,158 |
$ 223,671 |
$ 101,365 |
$ 137,528 |
$ 157,947 |
Mortgage sales |
166,201 |
204,628 |
84,476 |
127,441 |
125,386 |
Mortgage servicing portfolio |
1,293,037 |
1,261,746 |
1,216,292 |
1,199,107 |
1,153,020 |
Mortgage servicing rights |
8,535 |
8,168 |
8,974 |
11,017 |
10,447 |
Mortgage servicing revenue |
|||||
Loan servicing fees |
813 |
782 |
757 |
740 |
709 |
OMSR amortization |
(1,308) |
(1,574) |
(597) |
(709) |
(701) |
Net administrative fees |
(495) |
(792) |
160 |
31 |
8 |
OMSR valuation adjustment |
326 |
(1,088) |
(2,212) |
303 |
- |
Net loan servicing fees |
(169) |
(1,880) |
(2,052) |
334 |
8 |
Gain on sale of mortgages |
8,085 |
8,119 |
1,949 |
3,048 |
2,495 |
Mortgage banking revenue, net |
$ 7,916 |
$ 6,239 |
$ (103) |
$ 3,382 |
$ 2,503 |
Noninterest Income and Noninterest Expense
For the third quarter of 2020, noninterest expense of
Noninterest Income / Noninterest Expense |
|||||
($ in thousands, except ratios) |
|
|
|
|
|
Noninterest Income (NII) |
$ 10,418 |
$ 8,615 |
$ 2,161 |
$ 5,959 |
$ 5,366 |
NII / Total Revenue |
52.9% |
49.3% |
20.2% |
40.9% |
37.2% |
NII / Average Assets |
3.4% |
3.0% |
0.8% |
2.3% |
2.1% |
Total Revenue Growth |
36.4% |
39.6% |
-5.6% |
16.0% |
-1.2% |
Noninterest Expense (NIE) |
$ 11,335 |
$ 11,662 |
$ 9,406 |
$ 10,176 |
$ 9,500 |
Efficiency Ratio |
57.5% |
66.7% |
87.8% |
69.9% |
65.9% |
NIE / Average Assets |
3.7% |
4.0% |
3.5% |
3.9% |
3.6% |
Net Noninterest Expense/Avg. Assets |
-0.3 |
-1.0% |
-2.7% |
-1.6% |
-1.6% |
Total Expense Growth |
19.3% |
28.0% |
9.0% |
15.0% |
6.2% |
Operating Leverage |
1.9 |
1.4 |
-0.6 |
1.1 |
-0.2 |
Balance Sheet
Total assets as of
Total loans held for investment were
The investment portfolio of
Loan Balances |
||||||
($ in thousands, except ratios) |
|
|
|
|
|
Annual |
Commercial |
$ 216,667 |
$ 222,108 |
$ 151,538 |
$ 151,018 |
$ 145,147 |
$ 71,520 |
% of Total |
24.5% |
24.6% |
18.2% |
18.3% |
17.6% |
49.3% |
Commercial RE |
371,947 |
375,450 |
378,212 |
369,962 |
362,580 |
9,367 |
% of Total |
42.0% |
41.6% |
45.5% |
44.8% |
44.0% |
2.6% |
Agriculture |
57,420 |
58,817 |
47,660 |
50,994 |
51,946 |
5,474 |
% of Total |
6.5% |
6.5% |
5.7% |
6.2% |
6.3% |
10.5% |
Residential RE |
178,393 |
184,684 |
189,738 |
189,290 |
199,036 |
-20,643 |
% of Total |
20.1% |
20.6% |
22.9% |
22.9% |
24.2% |
-10.4% |
Consumer & Other |
61,423 |
60,489 |
63,616 |
64,246 |
64,658 |
-3,235 |
% of Total |
6.9% |
6.7% |
7.7% |
7.8% |
7.9% |
-5.0% |
Total Loans |
$ 885,850 |
$ 901,548 |
$ 830,764 |
$ 825,510 |
$ 823,367 |
$ 62,483 |
Total Growth Percentage |
7.6% |
|||||
Deposit Balances |
||||||
($ in thousands, except ratios) |
|
|
|
|
|
Annual |
Non-Int DDA |
$ 225,003 |
$ 229,042 |
$ 170,920 |
$ 158,357 |
$ 152,932 |
$ 72,071 |
% of Total |
22.2% |
23.1% |
19.8% |
18.8% |
18.0% |
47.1% |
Interest DDA |
164,248 |
154,143 |
133,722 |
131,084 |
131,655 |
32,593 |
% of Total |
16.2% |
15.6% |
15.5% |
15.6% |
15.5% |
24.8% |
Savings |
169,474 |
161,182 |
138,863 |
119,359 |
121,991 |
47,483 |
% of Total |
16.7% |
16.3% |
16.0% |
14.1% |
14.3% |
38.9% |
Money Market |
204,862 |
189,380 |
169,209 |
173,666 |
173,237 |
31,625 |
% of Total |
20.2% |
19.1% |
19.6% |
20.7% |
20.4% |
18.3% |
Time Deposits |
250,428 |
256,840 |
251,177 |
257,753 |
268,139 |
(17,711) |
% of Total |
24.7% |
25.9% |
29.1% |
30.8% |
31.8% |
-6.6% |
Total Deposits |
$ 1,014,015 |
$ 990,587 |
$ 863,891 |
$ 840,219 |
$ 847,954 |
$ 166,061 |
Total Growth Percentage |
19.6% |
Asset Quality
Nonperforming Assets |
Annual |
|||||
($ in thousands, except ratios) |
|
|
|
|
|
|
Commercial & Agriculture |
$ 1,140 |
$ 1,204 |
$ 1,309 |
$ 1,772 |
$ 834 |
$ 306 |
% of Total Com./Ag. loans |
0.42% |
0.43% |
0.66% |
0.88% |
0.42% |
36.7% |
Commercial RE |
2,475 |
2,484 |
1,816 |
1,826 |
262 |
2,213 |
% of Total CRE loans |
0.67% |
0.66% |
0.48% |
0.49% |
0.07% |
844.7% |
Residential RE |
2,481 |
2,538 |
2,330 |
1,635 |
1,763 |
718 |
% of Total Res. RE loans |
1.39% |
1.37% |
1.23% |
0.86% |
0.89% |
40.7% |
Consumer & Other |
313 |
308 |
327 |
267 |
416 |
(103) |
% of Total Con./Oth. loans |
0.51% |
0.51% |
0.51% |
0.42% |
0.64% |
-24.8% |
Total Nonaccruing Loans |
6,409 |
6,534 |
5,782 |
5,500 |
3,275 |
3,134 |
% of Total loans |
0.72% |
0.72% |
0.70% |
0.67% |
0.40% |
95.7% |
Accruing Restructured Loans |
789 |
804 |
816 |
874 |
825 |
(36) |
Total Change (%) |
-4.4% |
|||||
Total Nonaccruing & Restructured Loans |
7,198 |
7,338 |
6,598 |
6,374 |
4,100 |
3,098 |
% of Total loans |
0.81% |
0.81% |
0.79% |
0.77% |
0.50% |
75.6% |
Foreclosed Assets |
76 |
382 |
85 |
305 |
489 |
(413) |
Total Change (%) |
-84.5% |
|||||
Total Nonperforming Assets |
$ 7,274 |
$ 7,720 |
$ 6,683 |
$ 6,679 |
$ 4,589 |
$ 2,685 |
% of Total assets |
0.60% |
0.64% |
0.61% |
0.64% |
0.44% |
58.5% |
The Company continued to provide payment relief to clients as needed, with total forbearance as of
Loans in Deferral Status |
Linked Qtr. |
|||
($ in thousands, except ratios) |
|
|
||
Total Commercial |
$ 36,366 |
$ 142,682 |
$ (106,316) |
|
Total Consumer |
28 |
350 |
(322) |
|
Total Portfolio Mortgage |
1,959 |
10,274 |
(8,315) |
|
Total Balance Sheet Deferrals |
$ 38,353 |
$ 153,306 |
$ (114,953) |
|
% of Total loans |
4.33% |
17.00% |
-12.68% |
|
Total Sold Mortgage |
$ 42,317 |
$ 41,751 |
$ 566 |
|
Commercial High Sensitivity |
||||
Portfolio Update |
Linked Qtr. |
|||
($ in thousands, except ratios) |
|
|
||
Hotel/Travel Accomodation |
$ 32,475 |
$ 32,758 |
$ (283) |
|
Food Service/Restaurant |
9,698 |
10,480 |
(782) |
|
Elder/Child Care |
7,188 |
7,302 |
(114) |
|
Arts/Entertainment/Recreation |
6,614 |
5,698 |
916 |
|
Education/Religious |
13,412 |
15,083 |
(1,671) |
|
Energy |
- |
- |
- |
|
Total |
$ 69,387 |
$ 71,321 |
$ (1,934) |
|
% of Total loans |
7.83% |
7.91% |
-0.08% |
Webcast and Conference Call
The Company will hold a related conference call and webcast on
About
Headquartered in
In
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
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Investor Contact Information:
Chief Executive Officer
[email protected]
Chief Financial Officer
[email protected]
|
|||||||||||||
CONSOLIDATED BALANCE SHEETS - (Unaudited) |
|||||||||||||
September |
June |
March |
December |
September |
|||||||||
($ in thousands) |
2020 |
2020 |
2020 |
2019 |
2019 |
||||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ 94,641 |
$ 85,661 |
$ 56,393 |
$ 27,064 |
$ 49,824 |
||||||||
Interest bearing time deposits |
8,956 |
10,542 |
- |
- |
- |
||||||||
Available-for-sale securities |
130,315 |
104,289 |
107,727 |
100,948 |
77,029 |
||||||||
Loans held for sale |
13,943 |
13,742 |
11,328 |
7,258 |
13,655 |
||||||||
Loans, net of unearned income |
885,850 |
901,548 |
830,764 |
825,510 |
823,367 |
||||||||
Allowance for loan losses |
(11,793) |
(10,013) |
(8,958) |
(8,755) |
(8,492) |
||||||||
Premises and equipment, net |
23,785 |
23,662 |
23,599 |
23,385 |
23,898 |
||||||||
|
5,303 |
4,837 |
4,648 |
4,648 |
4,648 |
||||||||
Foreclosed assets held for sale, net |
76 |
382 |
85 |
305 |
489 |
||||||||
Interest receivable |
4,159 |
4,272 |
2,940 |
3,106 |
3,176 |
||||||||
|
22,763 |
22,813 |
17,830 |
17,832 |
17,834 |
||||||||
Cash value of life insurance |
17,453 |
17,375 |
17,299 |
17,221 |
17,137 |
||||||||
Mortgage servicing rights |
8,535 |
8,168 |
8,974 |
11,017 |
10,447 |
||||||||
Other assets |
14,255 |
15,658 |
15,684 |
9,038 |
9,749 |
||||||||
Total assets |
$ 1,218,241 |
$ 1,202,936 |
$ 1,088,313 |
$ 1,038,577 |
$ 1,042,761 |
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits |
|||||||||||||
Non interest bearing demand |
$ 225,003 |
$ 229,042 |
$ 170,920 |
$ 158,357 |
$ 152,932 |
||||||||
Interest bearing demand |
164,248 |
154,143 |
133,722 |
131,084 |
131,655 |
||||||||
Savings |
169,474 |
161,182 |
138,863 |
119,359 |
121,991 |
||||||||
Money market |
204,862 |
189,380 |
169,209 |
173,666 |
173,237 |
||||||||
Time deposits |
250,428 |
256,840 |
251,177 |
257,753 |
268,139 |
||||||||
Total deposits |
1,014,015 |
990,587 |
863,891 |
840,219 |
847,954 |
||||||||
Short-term borrowings |
20,710 |
23,826 |
36,881 |
12,945 |
14,659 |
||||||||
|
8,000 |
13,000 |
16,000 |
16,000 |
16,000 |
||||||||
Trust preferred securities |
10,310 |
10,310 |
10,310 |
10,310 |
10,310 |
||||||||
Interest payable |
946 |
929 |
1,131 |
1,191 |
1,391 |
||||||||
Other liabilities |
22,913 |
26,403 |
24,195 |
21,818 |
18,201 |
||||||||
Total liabilities |
1,076,894 |
1,065,055 |
952,408 |
902,483 |
908,515 |
||||||||
Shareholders' Equity |
|||||||||||||
Preferred stock |
- |
- |
- |
- |
13,241 |
||||||||
Common stock |
54,463 |
54,463 |
54,463 |
54,463 |
41,223 |
||||||||
Additional paid-in capital |
14,782 |
14,780 |
14,655 |
15,023 |
15,219 |
||||||||
Retained earnings |
80,012 |
75,526 |
72,641 |
72,704 |
70,184 |
||||||||
Accumulated other comprehensive income (loss) |
2,221 |
2,320 |
2,049 |
659 |
900 |
||||||||
|
(10,131) |
(9,208) |
(7,903) |
(6,755) |
(6,521) |
||||||||
Total shareholders' equity |
141,347 |
137,881 |
135,905 |
136,094 |
134,246 |
||||||||
Total liabilities and shareholders' equity |
$ 1,218,241 |
$ 1,202,936 |
$ 1,088,313 |
$ 1,038,577 |
$ 1,042,761 |
|
|||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) |
|||||||||||||||||
($ in thousands, except per share & ratios) |
At and for the Three Months Ended |
Nine Months Ended |
|||||||||||||||
September |
June |
March |
December |
September |
September |
September |
|||||||||||
Interest income |
2020 |
2020 |
2020 |
2019 |
2019 |
2020 |
2019 |
||||||||||
Loans |
|||||||||||||||||
Taxable |
$ 10,179 |
$ 9,945 |
$ 9,795 |
$ 10,313 |
$ 10,607 |
$ 29,919 |
$ 30,216 |
||||||||||
Tax exempt |
47 |
59 |
79 |
83 |
82 |
185 |
217 |
||||||||||
Securities |
|||||||||||||||||
Taxable |
494 |
510 |
692 |
737 |
776 |
1,696 |
2,489 |
||||||||||
Tax exempt |
87 |
81 |
78 |
72 |
81 |
246 |
273 |
||||||||||
Total interest income |
10,807 |
10,595 |
10,644 |
11,205 |
11,546 |
32,046 |
33,195 |
||||||||||
Interest expense |
|||||||||||||||||
Deposits |
1,423 |
1,549 |
1,880 |
2,392 |
2,258 |
4,852 |
6,268 |
||||||||||
Repurchase agreements & other |
12 |
20 |
28 |
17 |
22 |
60 |
65 |
||||||||||
|
59 |
92 |
100 |
101 |
101 |
251 |
301 |
||||||||||
Trust preferred securities |
54 |
62 |
88 |
99 |
107 |
204 |
331 |
||||||||||
Total interest expense |
1,548 |
1,723 |
2,096 |
2,609 |
2,488 |
5,367 |
6,965 |
||||||||||
Net interest income |
9,259 |
8,872 |
8,548 |
8,596 |
9,058 |
26,679 |
26,230 |
||||||||||
Provision for loan losses |
1,800 |
1,300 |
600 |
300 |
300 |
3,700 |
500 |
||||||||||
Net interest income after provision |
|||||||||||||||||
for loan losses |
7,459 |
7,572 |
7,948 |
8,296 |
8,758 |
22,979 |
25,730 |
||||||||||
Noninterest income |
|||||||||||||||||
Wealth management fees |
839 |
775 |
768 |
801 |
775 |
2,382 |
2,292 |
||||||||||
Customer service fees |
730 |
667 |
682 |
712 |
729 |
2,079 |
2,049 |
||||||||||
Gain on sale of mtg. loans & OMSR |
8,085 |
8,119 |
1,949 |
3,048 |
2,495 |
18,153 |
5,365 |
||||||||||
Mortgage loan servicing fees, net |
(169) |
(1,880) |
(2,052) |
334 |
8 |
(4,101) |
(731) |
||||||||||
Gain on sale of non-mortgage loans |
119 |
107 |
104 |
250 |
462 |
330 |
1,005 |
||||||||||
Title insurance revenue |
517 |
609 |
265 |
393 |
400 |
1,391 |
727 |
||||||||||
Net gain on sales of securities |
- |
- |
- |
- |
- |
- |
206 |
||||||||||
Gain (loss) on sale of assets |
(52) |
(80) |
(46) |
1 |
1 |
(178) |
(6) |
||||||||||
Other |
349 |
298 |
491 |
420 |
496 |
1,138 |
1,150 |
||||||||||
Total noninterest income |
10,418 |
8,615 |
2,161 |
5,959 |
5,366 |
21,194 |
12,057 |
||||||||||
Noninterest expense |
|||||||||||||||||
Salaries and employee benefits |
6,995 |
6,419 |
5,427 |
6,142 |
5,715 |
18,841 |
15,922 |
||||||||||
Net occupancy expense |
736 |
675 |
698 |
675 |
656 |
2,109 |
1,928 |
||||||||||
Equipment expense |
888 |
780 |
700 |
764 |
688 |
2,368 |
2,064 |
||||||||||
Data processing fees |
586 |
1,288 |
548 |
543 |
499 |
2,422 |
1,430 |
||||||||||
Professional fees |
695 |
1,224 |
757 |
639 |
571 |
2,676 |
1,837 |
||||||||||
Marketing expense |
137 |
141 |
208 |
171 |
239 |
486 |
724 |
||||||||||
Telephone and communication expense |
142 |
122 |
115 |
121 |
118 |
379 |
345 |
||||||||||
Postage and delivery expense |
96 |
96 |
115 |
86 |
89 |
307 |
254 |
||||||||||
State, local and other taxes |
331 |
262 |
254 |
347 |
243 |
847 |
745 |
||||||||||
Employee expense |
155 |
93 |
184 |
207 |
199 |
432 |
588 |
||||||||||
Other expenses |
574 |
562 |
400 |
481 |
483 |
1,536 |
1,397 |
||||||||||
Total noninterest expense |
11,335 |
11,662 |
9,406 |
10,176 |
9,500 |
32,403 |
27,234 |
||||||||||
Income before income tax expense |
6,542 |
4,525 |
703 |
4,079 |
4,624 |
11,770 |
10,553 |
||||||||||
Income tax expense |
1,292 |
870 |
22 |
721 |
862 |
2,184 |
1,938 |
||||||||||
Net income |
$ 5,250 |
$ 3,655 |
$ 681 |
$ 3,358 |
$ 3,762 |
$ 9,586 |
$ 8,615 |
||||||||||
Preferred share dividends |
- |
- |
- |
230 |
233 |
- |
720 |
||||||||||
Net income available to common shareholders |
5,250 |
3,655 |
681 |
3,128 |
3,529 |
9,586 |
7,895 |
||||||||||
Common share data: |
|||||||||||||||||
Basic earnings per common share |
$ 0.69 |
$ 0.47 |
$ 0.09 |
$ 0.48 |
$ 0.55 |
$ 1.25 |
$ 1.22 |
||||||||||
Diluted earnings per common share |
$ 0.69 |
$ 0.47 |
$ 0.09 |
$ 0.42 |
$ 0.48 |
$ 1.25 |
$ 1.08 |
||||||||||
Average shares outstanding (in thousands): |
|||||||||||||||||
Basic: |
7,607 |
7,708 |
7,756 |
6,445 |
6,397 |
7,700 |
6,459 |
||||||||||
Diluted: |
7,607 |
7,708 |
7,756 |
7,799 |
7,876 |
7,700 |
7,955 |
|
|||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) |
|||||||||||||||
($ in thousands, except per share & ratios) |
At and for the Three Months Ended |
Nine Months Ended |
|||||||||||||
September |
June |
March |
December |
September |
September |
September |
|||||||||
SUMMARY OF OPERATIONS |
2020 |
2020 |
2020 |
2019 |
2019 |
2020 |
2019 |
||||||||
Net interest income |
$ 9,259 |
$ 8,872 |
$ 8,548 |
$ 8,596 |
$ 9,058 |
$ 26,679 |
$ 26,230 |
||||||||
Tax-equivalent adjustment |
36 |
37 |
42 |
41 |
43 |
115 |
130 |
||||||||
Tax-equivalent net interest income |
9,295 |
8,909 |
8,590 |
8,637 |
9,101 |
26,794 |
26,360 |
||||||||
Provision for loan loss |
1,800 |
1,300 |
600 |
300 |
300 |
3,700 |
500 |
||||||||
Noninterest income |
10,418 |
8,615 |
2,161 |
5,959 |
5,366 |
21,194 |
12,057 |
||||||||
Total operating revenue |
19,677 |
17,487 |
10,709 |
14,555 |
14,424 |
47,873 |
38,287 |
||||||||
Noninterest expense |
11,335 |
11,662 |
9,406 |
10,176 |
9,500 |
32,403 |
27,234 |
||||||||
Pre-tax pre-provision income |
8,342 |
5,825 |
1,303 |
4,379 |
4,924 |
15,470 |
11,053 |
||||||||
Pretax income |
6,542 |
4,525 |
703 |
4,079 |
4,624 |
11,770 |
10,553 |
||||||||
Net income |
5,250 |
3,655 |
681 |
3,358 |
3,762 |
9,586 |
8,615 |
||||||||
Net income available to common shareholders |
5,250 |
3,655 |
681 |
3,128 |
3,529 |
9,586 |
7,895 |
||||||||
PER SHARE INFORMATION: |
|||||||||||||||
Basic earnings per share (EPS) |
0.69 |
0.47 |
0.09 |
0.48 |
0.55 |
1.24 |
1.22 |
||||||||
Diluted earnings per share |
0.69 |
0.47 |
0.09 |
0.42 |
0.48 |
1.24 |
1.08 |
||||||||
Common dividends |
0.100 |
0.100 |
0.095 |
0.095 |
0.090 |
0.295 |
0.265 |
||||||||
Book value per common share |
18.73 |
17.97 |
17.64 |
17.53 |
17.28 |
18.73 |
17.3 |
||||||||
Tangible book value per common share (TBV) |
15.72 |
15.00 |
15.32 |
15.23 |
16.23 |
15.72 |
16.2 |
||||||||
Fully converted TBV per common share |
- |
- |
- |
- |
14.98 |
- |
15.0 |
||||||||
Market price per common share |
13.49 |
16.62 |
11.12 |
19.69 |
16.72 |
13.49 |
16.7 |
||||||||
Market price per preferred share |
- |
- |
- |
- |
16.50 |
- |
16.5 |
||||||||
Market price to TBV |
85.8% |
110.8% |
72.6% |
129.2% |
103.0% |
85.8% |
103.0% |
||||||||
Market price to fully converted TBV |
- |
- |
- |
- |
111.6% |
- |
111.6% |
||||||||
Market price to trailing 12 month EPS |
8.0 |
11.4 |
8.4 |
13.0 |
11.5 |
8.0 |
11.5 |
||||||||
PERFORMANCE RATIOS: |
|||||||||||||||
Return on average assets (ROAA) |
1.73% |
1.25% |
0.26% |
1.28% |
1.44% |
1.12% |
1.13% |
||||||||
Pre-tax pre-provision ROAA |
2.74% |
1.99% |
0.49% |
1.67% |
1.89% |
1.81% |
1.44% |
||||||||
Return on average equity |
15.01% |
10.31% |
1.99% |
9.93% |
11.24% |
9.74% |
8.67% |
||||||||
Return on average tangible equity |
17.93% |
11.91% |
2.29% |
12.83% |
14.67% |
11.48% |
11.35% |
||||||||
Efficiency ratio |
57.48% |
66.68% |
87.81% |
69.90% |
65.85% |
67.68% |
71.12% |
||||||||
Earning asset yield |
3.96% |
3.95% |
4.32% |
4.80% |
4.98% |
4.08% |
4.87% |
||||||||
Cost of interest bearing liabilities |
0.75% |
0.89% |
1.12% |
1.42% |
1.33% |
0.91% |
1.27% |
||||||||
Net interest margin |
3.39% |
3.30% |
3.47% |
3.68% |
3.91% |
3.39% |
3.85% |
||||||||
Tax equivalent effect |
0.02% |
0.02% |
0.01% |
0.02% |
0.02% |
0.02% |
0.02% |
||||||||
Net interest margin, tax equivalent |
3.41% |
3.32% |
3.48% |
3.70% |
3.93% |
3.41% |
3.87% |
||||||||
Non interest income/Average assets |
3.42% |
2.95% |
0.81% |
2.27% |
2.06% |
2.48% |
1.58% |
||||||||
Non interest expense/Average assets |
3.73% |
3.99% |
3.54% |
3.87% |
3.64% |
3.79% |
3.56% |
||||||||
Net noninterest expense/Average assets |
-0.30% |
-1.04% |
-2.73% |
-1.60% |
-1.58% |
-1.31% |
-1.98% |
||||||||
ASSET QUALITY RATIOS: |
|||||||||||||||
Gross charge-offs |
32 |
254 |
400 |
51 |
128 |
686 |
208 |
||||||||
Recoveries |
11 |
10 |
3 |
14 |
15 |
24 |
33 |
||||||||
Net charge-offs |
21 |
244 |
397 |
37 |
113 |
662 |
175 |
||||||||
Nonaccruing loans/Total loans |
0.72% |
0.72% |
0.70% |
0.67% |
0.40% |
0.72% |
0.40% |
||||||||
Nonperforming loans/Total loans |
0.81% |
0.81% |
0.79% |
0.77% |
0.50% |
0.81% |
0.50% |
||||||||
Nonperforming assets/Loans & OREO |
0.82% |
0.86% |
0.80% |
0.81% |
0.56% |
0.82% |
0.56% |
||||||||
Nonperforming assets/Total assets |
0.60% |
0.64% |
0.61% |
0.64% |
0.44% |
0.60% |
0.44% |
||||||||
Allowance for loan loss/Nonperforming loans |
163.84% |
136.45% |
135.77% |
137.35% |
207.12% |
163.84% |
207.12% |
||||||||
Allowance for loan loss/Total loans |
1.33% |
1.11% |
1.08% |
1.06% |
1.03% |
1.33% |
1.03% |
||||||||
Allowance for loan loss/Total loans less PPP |
1.47% |
1.22% |
1.08% |
1.06% |
1.03% |
1.47% |
1.03% |
||||||||
Net loan charge-offs/Average loans (ann.) |
0.01% |
0.11% |
0.19% |
0.02% |
0.05% |
0.10% |
0.03% |
||||||||
Loan loss provision/Net charge-offs |
8571.43% |
532.79% |
151.13% |
810.81% |
265.49% |
558.91% |
285.71% |
||||||||
CAPITAL & LIQUIDITY RATIOS: |
|||||||||||||||
Loans/ Deposits |
87.36% |
91.01% |
96.17% |
98.25% |
97.10% |
87.36% |
97.10% |
||||||||
Equity/ Assets |
11.60% |
11.46% |
12.49% |
13.10% |
12.87% |
11.60% |
12.87% |
||||||||
Tangible equity/Tangible assets |
9.92% |
9.75% |
11.03% |
11.59% |
10.07% |
9.92% |
10.07% |
||||||||
Tangible equity adjusted for conversion |
- |
- |
- |
- |
11.36% |
- |
11.36% |
||||||||
Common equity tier 1 ratio (Bank) |
13.20% |
11.97% |
12.17% |
12.46% |
12.07% |
13.20% |
12.07% |
||||||||
END OF PERIOD BALANCES |
|||||||||||||||
Total assets |
1,218,241 |
1,202,936 |
1,088,313 |
1,038,577 |
1,042,761 |
1,218,241 |
1,042,761 |
||||||||
Total loans |
885,850 |
901,548 |
830,764 |
825,510 |
823,367 |
885,850 |
823,367 |
||||||||
Deposits |
1,014,015 |
990,587 |
863,891 |
840,219 |
847,954 |
1,014,015 |
847,954 |
||||||||
Stockholders equity |
141,347 |
137,881 |
135,905 |
136,094 |
134,246 |
141,347 |
134,246 |
||||||||
|
22,763 |
22,813 |
17,830 |
17,832 |
17,834 |
22,763 |
17,834 |
||||||||
Preferred equity |
- |
- |
- |
- |
13,241 |
- |
13,241 |
||||||||
Tangible equity |
118,584 |
115,068 |
118,075 |
118,262 |
103,171 |
118,584 |
103,171 |
||||||||
Mortgage servicing portfolio |
1,293,037 |
1,261,746 |
1,216,292 |
1,199,107 |
1,153,020 |
1,293,037 |
1,153,020 |
||||||||
Wealth/Brokerage assets under care |
522,360 |
495,025 |
427,129 |
507,670 |
484,295 |
522,360 |
484,295 |
||||||||
Total assets under care |
3,033,638 |
2,959,707 |
2,731,734 |
2,745,354 |
2,680,076 |
3,033,638 |
2,680,076 |
||||||||
Full-time equivalent employees |
251 |
254 |
253 |
252 |
247 |
251 |
247 |
||||||||
Period end common shares outstanding |
7,545 |
7,672 |
7,705 |
7,763 |
6,357 |
7,545 |
6,357 |
||||||||
Period end outstanding (Series A Converted) |
- |
- |
- |
- |
1,414 |
- |
1,414 |
||||||||
Market capitalization (all) |
101,782 |
127,509 |
85,680 |
152,853 |
129,620 |
101,782 |
129,620 |
||||||||
AVERAGE BALANCES |
|||||||||||||||
Total assets |
1,216,843 |
1,169,030 |
1,061,365 |
1,051,071 |
1,043,791 |
1,141,008 |
1,020,074 |
||||||||
Total earning assets |
1,090,386 |
1,073,490 |
986,216 |
934,540 |
927,360 |
1,047,846 |
908,284 |
||||||||
Total loans |
907,483 |
898,216 |
832,975 |
828,108 |
829,699 |
879,536 |
803,431 |
||||||||
Deposits |
1,007,679 |
946,053 |
855,272 |
856,961 |
849,984 |
936,805 |
829,335 |
||||||||
Stockholders equity |
139,908 |
141,821 |
136,930 |
135,267 |
133,891 |
131,156 |
132,465 |
||||||||
|
22,787 |
19,066 |
17,831 |
17,833 |
17,835 |
19,813 |
17,518 |
||||||||
Preferred equity |
- |
- |
- |
12,707 |
13,459 |
- |
13,771 |
||||||||
Tangible equity |
117,121 |
122,755 |
119,099 |
104,727 |
102,597 |
111,343 |
101,176 |
||||||||
Average basic shares outstanding |
7,607 |
7,708 |
7,756 |
6,445 |
6,397 |
7,700 |
6,459 |
||||||||
Average diluted shares outstanding |
7,607 |
7,708 |
7,756 |
7,799 |
7,876 |
7,700 |
7,955 |
|
||||||||||
Rate Volume Analysis - (Unaudited) |
||||||||||
At and for the Three Months Ended |
||||||||||
($ in thousands) |
Three Months Ended |
Three Months Ended |
||||||||
Average |
Average |
Average |
Average |
|||||||
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
Taxable securities/Cash |
$ 176,821 |
$ 494 |
1.12% |
$ 89,782 |
$ 776 |
3.46% |
||||
Nontaxable securities |
6,082 |
87 |
5.72% |
7,879 |
81 |
4.11% |
||||
Loans, net |
907,483 |
10,226 |
4.51% |
829,699 |
10,689 |
5.15% |
||||
Total earning assets |
1,090,386 |
10,807 |
3.96% |
927,360 |
11,546 |
4.98% |
||||
Cash and due from banks |
53,532 |
55,039 |
||||||||
Allowance for loan losses |
(10,448) |
(8,392) |
||||||||
Premises and equipment |
23,968 |
23,855 |
||||||||
Other assets |
59,405 |
45,929 |
||||||||
Total assets |
$ 1,216,843 |
$ 1,043,791 |
||||||||
Liabilities |
||||||||||
Savings, MMDA and interest bearing demand |
$ 531,913 |
$ 690 |
0.52% |
$ 434,190 |
$ 769 |
0.71% |
||||
Time deposits |
254,381 |
746 |
1.17% |
272,433 |
1,489 |
2.19% |
||||
Repurchase agreements & other |
23,811 |
12 |
0.20% |
15,948 |
22 |
0.55% |
||||
Advances from |
8,272 |
59 |
2.85% |
16,000 |
101 |
2.53% |
||||
Trust preferred securities |
10,310 |
54 |
2.10% |
10,310 |
107 |
4.15% |
||||
Total interest bearing liabilities |
828,687 |
1,561 |
0.75% |
748,881 |
2,488 |
1.33% |
||||
Non interest bearing demand |
221,385 |
- |
143,361 |
- |
||||||
Total funding |
1,050,072 |
0.59% |
892,242 |
1.12% |
||||||
Other liabilities |
26,863 |
17,658 |
||||||||
Total liabilities |
1,076,935 |
909,900 |
||||||||
Equity |
139,908 |
133,891 |
||||||||
Total liabilities and equity |
$ 1,216,843 |
$ 1,043,791 |
||||||||
Net interest income |
$ 9,246 |
$ 9,058 |
||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure |
3.39% |
3.91% |
||||||||
Net interest income as a percent of average interest-earning assets - non GAAP |
3.41% |
3.93% |
||||||||
- Computed on a fully tax equivalent (FTE) basis |
||||||||||
Nine Months Ended |
Nine Months Ended |
|||||||||
Average |
Average |
Average |
Average |
|||||||
Assets |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||
Taxable securities |
$ 161,947 |
$ 1,696 |
1.40% |
$ 96,013 |
$ 2,489 |
3.46% |
||||
Nontaxable securities |
6,363 |
246 |
5.15% |
8,840 |
273 |
4.12% |
||||
Loans, net |
879,536 |
30,104 |
4.56% |
803,431 |
30,433 |
5.05% |
||||
Total earning assets |
1,047,846 |
32,046 |
4.08% |
908,284 |
33,195 |
4.87% |
||||
Cash and due from banks |
28,040 |
46,797 |
||||||||
Allowance for loan losses |
(9,560) |
(8,303) |
||||||||
Premises and equipment |
23,855 |
23,643 |
||||||||
Other assets |
50,827 |
49,653 |
||||||||
Total assets |
$ 1,141,008 |
$ 1,020,074 |
||||||||
Liabilities |
||||||||||
Savings, MMDA and interest bearing demand |
$ 483,156 |
$ 2,550 |
0.70% |
$ 426,436 |
$ 2,232 |
0.70% |
||||
Time deposits |
253,398 |
2,315 |
1.22% |
261,362 |
4,036 |
2.06% |
||||
Repurchase agreements & Other |
21,856 |
60 |
0.37% |
15,760 |
65 |
0.55% |
||||
Advances from |
16,263 |
251 |
2.06% |
16,088 |
301 |
2.49% |
||||
Trust preferred securities |
10,310 |
204 |
2.64% |
10,310 |
331 |
4.28% |
||||
Total interest bearing liabilities |
784,983 |
5,380 |
0.91% |
729,956 |
6,965 |
1.27% |
||||
Non interest bearing demand |
200,251 |
0.73% |
141,537 |
1.07% |
||||||
Total funding |
985,234 |
871,493 |
||||||||
Other liabilities |
24,618 |
16,116 |
||||||||
Total liabilities |
1,009,852 |
887,609 |
||||||||
Equity |
131,156 |
132,465 |
||||||||
Total liabilities and equity |
$ 1,141,008 |
$ 1,020,074 |
||||||||
Net interest income |
$ 26,666 |
$ 26,230 |
||||||||
Net interest income as a percent of average interest-earning assets - GAAP measure |
3.39% |
3.85% |
||||||||
Net interest income as a percent of average interest-earning assets - non GAAP |
3.41% |
3.87% |
||||||||
- Computed on a fully tax equivalent (FTE) basis |
Non-GAAP reconciliation |
Three Months Ended |
Nine Months Ended |
|||||||
($ in thousands, except per share & ratios) |
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||
Total operating revenue |
$ 19,677 |
$ 14,424 |
$ 47,873 |
$ 38,287 |
|||||
Adjustment to (deduct)/add OMSR impairment* |
(326) |
- |
2,974 |
1,398 |
|||||
Adjusted total operating revenue |
19,351 |
14,424 |
50,847 |
39,685 |
|||||
Total operating expense |
11,335 |
9,500 |
32,403 |
27,234 |
|||||
Adjustment for merger expenses** |
- |
- |
(1,241) |
- |
|||||
Adjusted total operating expense |
11,335 |
9,500 |
31,162 |
27,234 |
|||||
Income before income taxes |
6,542 |
4,624 |
11,770 |
10,553 |
|||||
Adjustment for OMSR & merger expense |
(326) |
- |
4,215 |
1,398 |
|||||
Adjusted income before income taxes |
6,216 |
4,624 |
15,985 |
11,951 |
|||||
Provision for income taxes |
1,292 |
862 |
2,184 |
1,938 |
|||||
Adjustment for OMSR & merger expense*** |
(68) |
- |
885 |
294 |
|||||
Adjusted provision for income taxes |
1,224 |
862 |
3,069 |
2,233 |
|||||
Net income |
5,250 |
3,762 |
9,586 |
8,615 |
|||||
Adjustment for OMSR & merger expense |
(258) |
- |
3,330 |
1,104 |
|||||
Adjusted net income |
4,992 |
3,762 |
12,916 |
9,720 |
|||||
Diluted earnings per share |
0.69 |
0.48 |
1.25 |
1.08 |
|||||
Adjustment for OMSR & merger expense |
(0.04) |
- |
0.42 |
0.14 |
|||||
Adjusted diluted earnings per share |
$ 0.65 |
$ 0.48 |
$ 1.67 |
$ 1.22 |
|||||
Return on average assets |
1.73% |
1.44% |
1.12% |
1.13% |
|||||
Adjustment for OMSR & merger expense |
-0.08% |
0.00% |
0.29% |
0.11% |
|||||
Adjusted return on average assets |
1.64% |
1.44% |
1.41% |
1.23% |
|||||
Pretax, preprovision income |
8,342 |
4,924 |
15,470 |
11,053 |
|||||
Adjustment for OMSR & merger expense |
(326) |
- |
4,215 |
1,398 |
|||||
Adjusted pretax, preprovision income |
8,016 |
4,924 |
19,685 |
12,451 |
|||||
*valuation adjustment to the Company's mortgage servicing rights |
|||||||||
**transactions costs related to the Edon acquisition |
|||||||||
***tax effect is calculated using a 21% statutory federal corporate income tax rate |
View original content:http://www.prnewswire.com/news-releases/sb-financial-group-announces-third-quarter-2020-results-301163293.html
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