Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — IPO Roadshow (February 2018)
27 slides from Sb Financial's IPO roadshow presentation, Feb 5, 2018
Slide 1: Investor Presentation February 2018
Investor Presentation February 2018 Financial Data as of December 31, 2017 NASDAQ: SBFG Mark A. Klein – Chairman, President & Chief Executive Officer Anthony V. “Tony” Cosentino – Executive Vice President & Chief Financial Officer Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registratio
Slide 2: Caution Regarding Forward Looking Statements
2 Caution Regarding Forward Looking Statements This presentation contains certain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , and Section 21 E of the Securities Exchange Act of 1934 . These statements include, but are not limited to, descriptions o
Slide 3: Certain Important Information
3 Certain Important Information Registration Statement ; No Offer or Solicitation The Company has filed a registration statement (including a prospectus and related prospectus supplement) with the SEC for the offering to which this presentation relates . Before you invest, you should read the prospe
Slide 4: Offering Summary
4 Issuer SB Financial Group, Inc. (NASDAQ: SBFG) Offering Type Follow - on offering of common stock Offering Size $25.0 million; up to 15% overallotment Use of Proceeds General corporate purposes Closing Price (1) $19.00 per share Market Capitalization (1) $91.1 million Lock - up 90 days Bookrunning
Slide 5: Investment Highlights
5 Investment Highlights SBFG presents an opportunity to invest in a dominant Ohio community bank franchise at an attractive entry point □ Seasoned and talented management team with a proven track record □ Premier community bank serving its markets □ A history of superior earnings with multiple busin
Slide 6: Company Overview
6 Company Overview ▪ Balance Sheet (6/30/17): ▪ Assets – $ 876.6 million ▪ Gross Loans – $696.6 million ▪ Deposits – $729.6 million ▪ Loans/Deposits: 95.5% ▪ Trust Preferred Securities – $10.3 million ▪ Preferred equity – $14.0 million ▪ Tangible common equity – $63.6 million ▪ Capital Ratios (6/30/
Slide 7: Organization & Leadership
7 Organization & Leadership Source: S&P Global Market Intelligence; Public Company Documents SB FINANCIAL GROUP STATE BANK CORPORATE LEADERSHIP • Mark Klein – Ch airman, President and CEO • Tony Cosentino – EVP and CFO • Keeta Diller – SVP, Corporate Secretary REGIONAL /COMMERCIAL LEADERSHIP • Jon G
Slide 8: State Bank Business Line Leaders
8 State Bank Business Line Leaders Source: S&P Global Market Intelligence; Public Company Documents ▪ Laura Kline – SVP, Client Experience Officer Retail Banking Wealth Management ▪ Chris Jaykma – EVP , Chief Wealth Management Officer ▪ David Bell – EVP , Retirement Services Private Client Group ▪ J
Slide 9: Mark A. Klein biography
9 Mark A . Klein brings to the Board extensive experience in the financial institution industry . He was appointed Chairman, President and CEO of the Board of Directors of SB Financial Group, Inc . in 2015 . Previously, he served as President and CEO of SB Financial Group, Inc . since 2010 and State
Slide 10: Franchise Footprint – Fort to Port
10 Franchise Footprint – “Fort to Port” Branch Location LPO Location (1) Opened 4Q 2017 (2) Drive - through associated with 401 Clinton Street location Source: S&P Global Market Intelligence; Company Documents ▪ 20 branches covering Toledo, Fort Wayne, Columbus, and several core Ohio banking markets
Slide 11: Attractive Markets
11 Columbus 6.1% Toledo 17.3% Ft. Wayne 4.4% Fulton/ Williams 23.0% Lima 4.4% Findlay 1.9% Defiance/ Paulding 42.8% Attractive Markets Note: Percentages may not foot due to rounding Source: S&P Global Market Intelligence; Company Documents; Forbes; Local area chambers of commerce Toledo, OH Fort Way
Slide 12: Financial Highlights – SB Financial Group, Inc.
12 Financial Highlights – SB Financial Group, Inc. SB FINANCIAL GROUP, INC. - SBFG For the Twelve Months Ended In $000s except for per share data 12/31/15 12/31/16 12/31/17 09/30/17 12/31/17 Balance Sheet Total Assets $733,071 $816,005 $876,627 $860,462 $876,627 Total Gross Loans $557,659 $644,433 $
Slide 13: Unique Business Model
13 Unique Business Model Note: Data as of December 31, 2017 Source: S&P Global Market Intelligence; Public Company Documents 2017 NET INCOME $11.1 Million BANKING $ 8 .4 M M / 76 % RESIDENTIAL REAL ESTATE $ 2.2 MM / 19 % % WM $ 0 . 5 M/ 5 % 201 7 ASSETS UNDER MANAGEMENT $ 2 . 3 BILLION (12/31/17) CO
Slide 14: Top-Quartile Performance Metrics
14 Top - Quartile Performance Metrics Peer Group Top Quartile (1) 2017 Peer Group Median (1) 2017 SBFG 2017 SBFG 2016 SBFG 2015 SBFG 2014 Return On Average Assets 0.97 0.77 1.29% 1.11% 1.06% 0.78% Net Interest Margin (FTE) 3.80 3.67 3.78 3.75 3.78 3. 62 Noninterest Income/Avg. Assets 0.96 0.73 2.01
Slide 15: Performance Highlights
15 Performance Highlights Return on Average Tangible Common Equity (1) Return on Average Assets Net Interest Margin (FTE) Efficiency Ratio 0.75% 0.81% 0.78% 1.06% 1.11% 1.10% 1.29% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 16.54 % 15.31 % 13.04 % 14.12 % 14.
Slide 16: Creating Value for Shareholders
16 Creating Value for Shareholders $7.28 $7.98 $9.24 $10.39 $11.59 $13.27 $9.33 $10.22 $11.14 $12.40 $0.99 $1.07 $1.07 $1.19 $1.38 $1.47 $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $5.00 $7.00 $9.00 $11.00 $13.00 $15.00 2012 2013 2014 2015 2016 2017* Earnings per Share ($) TBV per Share ($) TBV/Share Fully
Slide 17: Loan and Deposit Composition
17 Composition Loan Type ($000) % of Total Constr & Dev 61,262 8.8% Agriculture & Farmland 51,947 7.5% 1-4 Family Residential 161,843 23.2% Home Equity 44,566 6.4% Owner - Occ CRE 109,718 15.8% Other CRE 113,315 16.3% Multifamily 40,615 5.8% Commercial & Industrial 95,288 13.7% Consr & Other 18,061
Slide 18: Credit Quality Trends
18 1.47% 1.46% 1.31% 1.25% 1.20% 1.14% 0.00% 0.80% 1.60% 2.40% 3.20% 4.00% 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y $8,930 $7,234 $6,278 $8,432 $5,321 $3,859 $0 $3,000 $6,000 $9,000 $12,000 $15,000 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y Nonperforming Assets/Total Assets Nonperforming Assets ($000) Net Charg
Slide 19: Diverse Revenue Streams
19 Diverse Revenue Streams Note: Data as of December 31, 2017 Source: S&P Global Market Intelligence Mortgage Banking 49.1% Service Fees 15.5% Wealth Management 16.1% SBA 6.9% Other 12.4% Several sources of non - interest income ▪ Mortgage banking ▪ SBA lending ▪ Service c harges ▪ Wealth management
Slide 20: Mortgage Banking
20 $606 $663 $773 $900 $995 4,549 4,950 5,634 6,415 7,051 $0 $200 $400 $600 $800 $1,000 $1,200 2013 2014 2015 2016 2017 - 1,500 3,000 4,500 6,000 7,500 $ of Loans ($M) Number of Loans $ of Loans ($M) Number of Loans Serviced Mortgage Banking Note: Data as of December 31, 2017 Source: Public Company
Slide 21: Achieving the Vision – Key Initiatives
21 COMMITMENT TO STAKEHOLDERS PASSION FOR SERVICE HOLISTIC APPROACH Achieving the Vision – Key Initiatives Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver g
Slide 22: Relative Valuation
22 Relative Valuation 146.7 153.2 157.5 159.7 170.7 180.4 185.9 188.2 195.0 208.4 210.5 220.1 235.8 293.9 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 UBOH SBFG MBCN CIVB LCNB UCFC MFSF MBTF OVBC PEBO FDEF FMNB HBNC FMAO 12.7 15.2 16.1 17.1 17.1 17.3 18.3 18.8 19.8 21.0 22.3 23.0 23.7 30.0 0.0 5.0 1
Slide 23: Pro Forma Capital Impact
23 Pro Forma Capital Impact 12/31/2017 12/31/2017 Standalone Pro Forma Top Tier Consoldiated: Trust Preferred $10,310 $10,310 Tangible Common Equity $63,606 $90,584 Preferred Equity $13,983 $13,983 TCE/TA 7.39% 10.40% TE/TA 9.02% 12.01% Bank: Leverage Ratio (%) 9.72% 12.46% Tier 1 Capital Ratio (%)
Slide 24: Non-GAAP Reconciliation
24 Non - GAAP Reconciliation SB Financial Group, Inc. GAAP Reconciliation (Unaudited) (Dollars in thousands, except per share data) As of December 31, 2017 As of December 31, 2016 Common Shareholders' Equity 80,017$ 72,565$ Less: Intangible Assets (16,411) (16,422) Tangible Common Equity 63,606$ 56,
Slide 25: Non-GAAP Reconciliation – Fully-Converted Tangible Common Equity
25 Non - GAAP Reconciliation Reconciliation of Fully - Converted Tangible Common Equity Calculations SB Financial Group, Inc. GAAP Reconciliation (Unaudited) (Dollars in thousands, except per share data) As of As of December 31, 2017 December 31, 2016 Tangible Common Equity $63,606 $56,143 Common Sh
Slide 26: Non-GAAP Reconciliation – Core Earnings Per Share
26 Non - GAAP Reconciliation Reconciliation of Core Earnings Per Share Calculations SB Financial Group, Inc. GAAP Reconciliation (Unaudited) (Dollars in thousands, except per share data) Quarter Ended, Year Ended, December 31, 2017 December 31, 2017 Net Income $4,032 $11,065 Less: Tax Benefit (1,705
Slide 27: www.yoursbfinancial.com
27 www.yoursbfinancial.com