Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Shareholder Meeting (April 2024)
37 slides from Sb Financial's shareholder meeting presentation, Apr 17, 2024
Slide 1: 2024 Annual Shareholder Meeting
2024 ANNUAL SHAREHOLDER MEETING SB FINANCIAL GROUP, INC. Building on Resilience and Innovation to Drive Growth
Slide 2: 2023 Highlights
• Net income of $12.1 million or $1.75/share • Dividend payout ratio of nearly 30% averaging 3.5% yield • ROAA 0.91%, ROAE 10.22%, ROATCE 12.78% • Ranked in the top 200 American Banker Magazine’s list of Community Banks in 8 out of the last 9 years • Eight county market share YOY 2023 +0.17% or $38.
Slide 3: Community Engagement and Governance Matters
Community Engagement and Governance Matters fe) 36 Community Engagement Governance We are committed to sound and effective corporate governance practices 1.47M contributed nn 480 volunteer events’ to community initiatives’ 8 of 9 Board members are independent fe) (" 65% of staff volunteered? 6,995 v
Slide 4: EPS and ROAA versus peer group
0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2018 2019 2020 2021 2022 2023 EPS ($/Share) ROAA (%) SBFG (L) Peer Group Top Quartile* (L) SBFG-EPS (R) * Peer group consists of S &P 20 23 data for 65 publicly traded bank holding companies in the U.
Slide 5: Unique Qualities: Net Income Contributions
RRE $0.2M / 2% Retail/PCG $5.8M / 48% Peak $0.3M / 2% Commercial/SBA $5.3M / 44% WM $0.5M / 4% NET INCOME CONTRIBUTIONS 20 23 NET INCOME $ 12.1 MILLION 20 23 ASSETS UNDER MANAGEMENT $ 3.2 BILLION COMPRISED OF: • $1.34B Commercial Bank • $1.37B Residential Sold Portfolio • $502M Wealth Management • E
Slide 6: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 7: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 8: Increase Profitability Through Diversification of Revenue Streams
Increase Profitability THROUGH DIVERSIFICATION OF REVENUE STREAMS $0 $5 $10 $15 $20 $0 $15 $30 $45 $60 $75 2019 2020 2021 2022 2023 NET INCOME REVENUE (MIL) TOTAL REVENUE/NET INCOME Title Revenue Other SBA Mortgage Service Charges Wealth Management Net Interest Margin Net Income $ 52.8 45.6 % $66.1
Slide 9: Non-Interest Income to Revenue vs Peers
* Peer group consists of S &P Capital 20 23 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $500 million and $ 2.65 billion 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 2019 2020 2021 2022 2023 PERCENTAGE NON - INTEREST INCOME
Slide 10: Mortgage Volume and Gain on Sale
$445 $694 $600 $313 $216 $0 $100 $200 $300 $400 $500 $600 $700 $800 $0 $5 $10 $15 $20 $25 $30 2019 2020 2021 2022 2023 MORTGAGE VOLUME (MIL) MORTGAGE GAIN ON SALE (MIL) MORTGAGE GAIN ON SALE/VOLUME NW Ohio Columbus Findlay Indy Total $ Originations Increase Profitability THROUGH DIVERSIFICATION OF R
Slide 11: Wealth Management AUM and Revenue Growth
Increase Profitability THROUGH DIVERSIFICATION OF REVENUE STREAMS $508 $558 $618 $507 $502 $3.1 $3.3 $3.8 $3.7 $3.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $0 $100 $200 $300 $400 $500 $600 $700 2019 2020 2021 2022 2023 Wealth Management Revenue ($M) Wealth Management AUM ($M) AUM Revenue WEALTH
Slide 12: Net Interest Income and Margin; Liability Cost Trends
Increase Profitability THROUGH DIVERSIFICATION OF REVENUE STREAMS $34,826 $35,930 $37,884 $39,399 $39,273 3.82% 3.35% 3.06% 3.22% 3.16% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% $32,000 $33,000 $34,000 $35,000 $36,000 $37,000 $38,000 $39,000 $40,000 2019 2020 2021 2022 2023 (000’s)
Slide 13: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 14: Historical Growth: Assets, Loans, Deposits, Net Income
TOTAL ASSETS ($M) $11.6 $12.0 $14.9 $18.3 $12.5 $12.1 $0 $12 $24 2018Y 2019Y 2020Y 2021Y 2022Y 2023Y $803 $840 $1,049 $1,113 $1,087 $1,070 $0 $750 $1,500 2018Y 2019Y 2020Y 2021Y 2022Y 2023Y $987 $1,039 $1,258 $1,331 $1,336 $1,342 $0 $550 $1,100 $1,650 2018Y 2019Y 2020Y 2021Y 2022Y 2023Y Strengthen M
Slide 15: Loan Portfolio and Asset Composition
Loans (Net) 75% Securities 16% Cash & Due 2% Other 7% Commercial RE 42% HELOC 5% 1 - 4 Family 32% Agriculture 7% C&I 12% Consumer & Other 2% LOAN PORTFOLIO = $ 1.00 BILLION Strengthen Market Penetration IN ALL MARKETS SERVED Loan to Deposit December 2023 – 93% TOTAL ASSETS = $1.34 BILLION 26
Slide 16: Deposit Portfolio and Funding Sources
Borrowings 9% Deposits 80% Capital 9% Other 2% Time 24% MMDA 19% Savings 20% Interest Bearing 16% Non - Interest 21% D EPOSIT PORTFOLIO = $1.1 BILLION Strengthen Market Penetration IN ALL MARKETS SERVED Transactional deposits = 76% of total deposits Average cost of deposits = 134 bps* *December 2023
Slide 17: Deposits by Quarter
Strengthen Market Penetration IN ALL MARKETS SERVED $1,086,665 $1,110,144 $1,071,156 $1,085,319 $1,070,205 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 4Q2022 1Q23 2Q23 3Q23 4Q23 Deposits 28
Slide 18: Liquidity vs. Uninsured Deposits
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2020 2021 2022 2023 CONTINGENCY LIQUIDITY ($000s) (Cash & FHLB Capacity) UNINSURED DEPOSITS ($000s) LIQUIDITY vs. UNINSURED DEPOSITS Uninsured Deposits
Slide 19: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 20: Strong Market Leadership
STRONG MARKET LEADERSHIP BOWLING GREEN & TOLEDO FULTON & WILLIAMS COUNTIES Mark D. Cassin Tyson R. Moss Chris A. Webb LIMA FINDLAY Andy S. Farley Stefan R. Hartman FORT WAYNE COLUMBUS Adam Graessle 31 Expand Product Utilization BY NEW AND EXISTING CUSTOMERS
Slide 21: Products and Services per Household
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 2015 2017 2019 2021 2023 Products & Services/Household Products/Services Households Expand Product Utilization BY NEW AND EXISTING CUSTOMERS 32
Slide 22: Online and Mobile Banking Users
On - Line Banking Users 0 2,000 4,000 6,000 8,000 10,000 12,000 2020 2021 2022 2023 Mobile Banking Users 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2020 2021 2022 2023 Expand Product Utilization BY NEW AND EXISTING CUSTOMERS 33
Slide 23: Electronic vs In-Office Transactions
0 200 400 600 800 1,000 1,200 1,400 0 1,000 2,000 3,000 4,000 5,000 6,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 IN - OFFICE TRANSACTIONS PER YEAR (000’s) ELECTRONIC TRANSACTIONS PER YEAR (000’s) ELECTRONIC TRANSACTIONS & IN - OFFICE TRANSACTIONS Electronic Transactions In-Offic
Slide 24: Referrals and New Business
1,712 1,636 1,312 1,409 1,364 959 811 607 737 761 $71.3 $99.5 $79.3 $81.6 $85.3 $0 $20 $40 $60 $80 $100 $120 0 700 1,400 2,100 2019 2020 2021 2022 2023 NEW BUSINESS (MIL) REFERRALS REFERRALS & NEW BUSINESS Gross Closed New Business Expand Product Utilization BY NEW AND EXISTING CUSTOMERS 35
Slide 25: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 26: Mortgage Servicing Portfolio
Deliver Gains in Operation Excellence $1,199,107 $1,299,697 $1,362,961 $1,352,016 $1,366,667 8,155 8,543 8,614 8,514 8,549 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 2019 2020 2021 2022 2023 NUMBER OF LOANS $ OF LOANS ($000s
Slide 27: Total Risk Based Capital
Deliver Gains in Operation Excellence 13.4 14.2 15.2 14.7 14.7 0.0 3.0 6.0 9.0 12.0 15.0 18.0 2019 2020 2021 2022 2023 RATIO (%) TOTAL RISK BASED CAPITAL Total Risk Based Capital Well Capitalized 38
Slide 28: TBV and EPS Performance
$7.98 $9.24 $10.39 $11.59 $13.27 $15.39 $15.23 $16.30 $17.60 $17.95 $19.42 $1.07 $1.06 $1.19 $1.38 $1.74 $1.51 $1.51 $1.96 $2.56 $1.77 $1.75 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 29: Dividend Payout Ratio
Deliver Gains in Operation Excellence Dividend Payout Ratio 23.84 20.41 17.19 27.12 29.71 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 2019 2020 2021 2022 2023 Percent Payout Ratio Average Annual Dividend 0.00 0.10 0.20 0.30 0.40 0.50 0.60 Dollars 40 10 YEAR CAGR OF 16.4%
Slide 30: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 31: Non-Performing Assets to Total Assets vs Peers
Sustain Asset Quality * Peer group consists of S&P Capital 20 23 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $500 million and $ 2.88 billion. 0.42 0.58 0.49 0.38 0.25 0.61 0.49 0.41 0.40 0.23 0.39 0.22 0.19 0.20 0.13 0.00 0.70 1.40 2019 2020
Slide 32: Net Charge-Offs to Average Loans vs Peers
Sustain Asset Quality * Peer group consists of S&P Capital 20 23 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $500 million and $ 2.88 billion. -0.05% 0.00% 0.05% 0.10% 2019 2020 2021 2022 2023 NCO’s/ AVERAGE LOANS SBFG Peer Median* Top Quarti
Slide 33: Reserve to Non-Performing Loans
0 100 200 300 400 500 600 2019 2020 2021 2022 2023 PERCENTAGE RESERVE TO NON - PERFORMING LOANS SBFG Median Top Quartile Sustain Asset Quality * Peer group consists of S &P Capital 20 23 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $500 milli
Slide 34: Loan Loss Reserve
Sustain Asset Quality 45 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2019 2020 2021 2022 2023 Coverage (%) Reserves (Mil $) LOAN LOSS RESERVE Reserves Coverage $1.4M Added 1/1/23 – CECL Adoption
Slide 35: Criticized Loans
Sustain Asset Quality $12,996 $12,705 $7,794 $8,379 $8,223 $2,297 $2,265 $2,953 $5,806 $7,112 $7,367 $4,378 $4,484 $4,321 $7,124 $6,608 $6,784 $3,225 2.44% 2.36% 1.36% 1.39% 1.30% 0.97% 0.90% 0.99% 0.90% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% $0 $5,000 $10,000 $15,000 $20,000 $25,000 4Q21 1Q22 2Q22 3Q2
Slide 36: Key Initiatives
Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa
Slide 37: Thank you for joining us today!
49 Thank you for joining us today! Board and Management
SB Financial Group — Shareholder Meeting (April 2024) on 6ix