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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Q & A
Operator
Operator

We will now begin the question-and-answer session. [Operator Instructions] Our first question is from Brian Martin with Janney Montgomery. Please go ahead.

Analyst
Brian Martin

Hey, good morning guys.

Executive
Mark A. Klein

Good morning, Brian.

Executive
Anthony V. Cosentino

Good morning, Brian.

Analyst
Brian Martin

May be -- Mark, if maybe you want to start, just maybe give a little bit of thought, or Tony, on just kind of the mortgage outlook. I mean, obviously, a strong quarter here, a strong second half of the year. Just given the rate environment we're in and just kind of your thoughts on production next year and just how you're thinking about that business as you go forward here.

And I think you mentioned that the Indy market sounded like its got some room for upside there. And just kind of what -- if you could give an update on kind of that market and how -- I mean if you're adding staff there, just what would drive that growth there.

Executive
Mark A. Klein

Sure. Thanks, Brian. Again, nice to have you with us. I remain -- we remain very bullish on the business line as we disclosed $445 million, the best ever. We're looking at some opportunities to expand that business line, albeit with a lift out or two to improve production on up to the $500 million and $600 million mark. So, we're excited about that. And you know Brian, we made a clear shift from the refinancing boom to the purchase money boom seamlessly, and continued on the volume increasing trends that we've had in the past.

We think the business line has a great inertia as we continue to work really hard to develop those single-service households into multiple-service households. So, going forward, we would expect to continue to drive that to a higher level, albeit with the Indy market that is not performing as we had hoped in 2019. But clearly with the addition of a couple of lenders there, and hopefully another one or two here shortly, we'll get that thing back on track to do that $35 million or $50 million per year that we think we're capable of. And I would be disappointed if we didn't deliver that, Brian, in the 2020 year in Indy and, again, similar levels of production that we have in mind across our entire footprint for 2020.

Analyst
Brian Martin

Okay. And the lift outs, Mark, would those be in existing markets or would you look at entertaining go into new markets?

Executive
Mark A. Klein

They would be -- generally, the answer, Brian, would be yes. They're in existing market and would take us to the fringes of some new markets, and we're extremely excited about that opportunity. We've begun to leverage our Encompass platform that certainly is one of the best in the market, and we know that mortgage originators and backroom alike -- like that platform. And we also have our Chief Technology Innovation Officer with us today, Ernesto Gaytan, that's driving that platform and all those initiatives to make us more efficient in the backroom so that we can use