SB Financial Group, Inc. (NASDAQ:SBFG) Q4 2019 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 11:00 am ET

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SB Financial Group, Inc. (NASDAQ:SBFG) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Anthony V. Cosentino

quarter of 97.1% to 98.3% this quarter. We have lower deposit rates in response to the recent Fed rate decreases, and thus far balances are holding relatively flat.

Looking at our capital position, we finished the quarter at $136.1 million, which was up $5.7 million or 4.3% from the prior year. On December 26, we completed the conversion of our preferred shares to common. This improved tangible equity by $14 million and resulted in an improved tangible book value per share of $15.23. We continued our share buyback in the quarter, and we have approximately $190,000 remaining on our current share buyback authorization.

Regarding asset quality, total non-performing assets now stand at $4.3 million, down $300,000 from the linked quarter. Included in those non-performing asset totals are $0.9 million in accrued restructured credits. These restructured loans elevate our non-performing level by 8 basis points. And absent these, our total non-performing asset ratio would be just 34 basis points. Provision expense for the quarter was $0.3 million, up $0.3 million from the prior year and level to the linked quarter. We did have loan losses in the quarter of $37,000 or 2 basis points, and for the full year, $212,000 or 3 basis points.

Our absolute level of loan loss allowance of $8.8 million is up 7.2% from the prior year and our allowance to total loans percentage has remained steady at 1.06% compared to the prior year.

I'll now turn the call back over to Mark.

Executive
Mark A. Klein

Thank you, Tony. As Tony mentioned, we are proud of our recent five-year journey to convert our preferred shareholders to common at year-end. All totaled, these shareholders earned a five-year return of 127% on their investment. In summary, as we look back on 2019, we are excited to recall the many significant accomplishments for our Company. Achieved the highest net income in 16 years or $12 million. Crossed $1-billion-mark for our bank. Broke $500-million-mark in wealth assets under management. Managed a $1.2 billion residential portfolio that included record volume this year, as I mentioned, $445 million. And perhaps, most importantly, delivered our total shareholder market value that now exceeds $150 million.

We've made some great progress this past year in a number of areas, albeit on the heels of an entire decade without a pullback or recession. As such, we believe we are well poised for even greater achievements in 2020 and beyond.

And with that, I'll turn it back to Carol for questions.

Executive
Carol Robbins

Thank you. Gary, we are now ready for our first question.