Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — SMID-West Conference, Chicago, December 2013
24 slides from Sb Financial's conference presentation, Dec 4, 2013
Slide 1: SB Financial Group, Inc.
SB Financial Group, Inc. Vision: Become a top quartile independent financial services company servit northwestern Ohio and linked markets ‘SMID-West Conference, Chicago, December 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement (Certain statements whin this document. which are not statements of historical fact. consttute ferwardsooking statements win the meaning ofthe Private Secures Litgation Reform Act of 1995. Forward-looking statements involve SKS and uncertanbes and actual results may Ser ‘materi
Slide 3: Vision: Become a Top Quartile Independent Financial Services Company
Vision: Become a Top Quartile Independent Financial Services Company + Strategy andteamin + NASDAQ: SBFG place to drive: =,$633 million in assets ~ ROAA expansion ~ $39 million market cap — Further diversification of NER. rallion shares! revenue stream — Growth within existing markets: - Further imp
Slide 4: What is "Top Quartile" Performance
What is “Top Quartile” Performance [Non-interest Expense/Avg. Assets 427 43 400 NPAs/Assets 138 140 160 ‘Tangible Common Equity 8 570 48s, uk-Bazed Capita Ratio 119 Ray 13s * pear roup coats of SNL 302013 data for 69 pub ade Bank olin companies in th US. on ‘major exchange with sets bate $500 mon an
Slide 5: SBFG's Foundation
SBFG’s Foundation * Based in Defiance, Ohio * Operating through: = 17 banking centers in seven Ohio counties ~ One banking center in Indiana — Three loan production offices: two in Columbus, Ohio, and one in Angola, Indiana * Offering a full range of financial services for consumers and small busine
Slide 6: Distinguishing SBFG
Distinguishing SBFG + Providing consistent first-class customer experiences + Broader product offering than typical bank with less than $1 billion in assets + High-level business leaders: — On the ground in our large markets — Owning’ their business (not product-driven, but customer-driven)
Slide 7: SBFG's Strategic Path
SBFG’s Strategic Path + Strengthen penetration in all markets served — Low market share in higher growth markets * Expand product service utilization by new and existing customers — Household share of wallet + Increase profitability through ongoing diversification of revenue streams = Fee income a s
Slide 8: Serving Northwestern Ohio and Linked Markets
Serving Northwestern Ohio and Linked Markets +_Northwestern Ohio markets recovering from economic downturn + Median home price in Ohio in Q2 2013 was $113,730 vs. U.S. median of $180,176 + Market share + Rural — high * Urban - low + Low-cost rural deposit base offers advantage in urban market lendin
Slide 9: Strengthen Penetration in Markets Served
Strengthen Penetration in Markets Served + Columbus — Retail expansion process progressing — Significant number of mortgage households with limited relationships + Toledo — Fully staffed with commercial lending, wealth management and retail locations + Defiance — Enhance and maintain our high deposi
Slide 10: Expand Product Service Utilization by New and Existing Customers
Expand Product Service Utilization by New and Existing Customers + 32% of our households use three or more services + 87% of our staff has made a referral to another business line + Branded credit card product premiered May 2013 + Relationship rewards depository products to premier in Q1 2014
Slide 11: Increase Profitability Through Ongoing Diversification
Increase Profitability Through Ongoing Diversification + Fee income as a 2012 Fee income percentage of total $14.9 million revenue exceeds 40% + Significant capacity exists to expand relationships with little additional cost + New assets under management average 81 bps in fee income
Slide 12: Achieve Operational Excellence
Achieve Operational Excellence * Top-line growth to drive upside in above- peer group efficiency ratio + Potential to refinance high-cost Trust Preferred debt + Management committed to consumer technology — Mobiliti® app — Remote Deposit Capture
Slide 13: Sustain Asset Quality
Sustain Asset Quality + SBFG's asset quality INAS / Assets, now solidly top ro quartile aco oe yy ~ Loan loss provision _ Lo \eee , has outpaced & charge-offs for the Z 200 last eight quarters } 150 + Three relationships 1.00 comprise 42% of 050 total non-performing 0.00 balance pis mi 2012/ 28 gape
Slide 14: Diverse Balance Sheet
Diverse Balance Sheet Poneto Buen srs eyyerincabe balance sheet an important risk mitigator + SBFG reliance on commercial real estate below median peer level of 47.5%
Slide 15: Business Strategy Offers Additional Advantages
Business Strategy Offers Additional Advantages ROAA + Management/Board vif Committed to growth 1.00 through acquisition 0.80 * Dividends reinstated in 2013; continuous 60 payout a management 0.40 priority 0.20 + Retained earnings have dues ‘CE 0.09 ratio 217 bps in three 2010 2011 2012 2013 years yr
Slide 16: Strategy and Team Poised for Performance
Strategy and Team Poised for Performance * Become a top quartile independent financial services company —ROAA expansion — Further diversification of revenue stream — Growth within existing markets — Further improvement in asset quality
Slide 17: Appendix
Appendix
Slide 18: Balance Sheet
Balance Sheet Leng Ra (Bak, BHC Oy) 2013 FOS
Slide 19: Profitability (%)
Profitability (%) Rosa Roe Roses ee) Nt ren Marge
Slide 20: Asset Quality (%)
Asset Quality (%) 2013 FO) ey 10a 2831 ar NBA EncengRasruchreAnets 120 20 3c 108 Nha 8 S04 POA 0 2m 371m Neaacam 6 RED 10 3a aaa NPA Lean 4 angie Common Eaaty + LR 28 so ae 072 ean Loe Revers Grom Leone 15 1a Reseran eas 727 moe 7480 ean Lon Provionnco mea oar wen gost
Slide 21: Per Share Information ($)
Per Share Information ($) amin ‘Agere aaen7Te untae ‘rg Dhan Shaws ac) ‘AS77000 4617794961770 4481779 48TOADD 4825004 Repo Bock Vue Coreen een SD) Reponet Tangti Book Ve yee 738 aoe aT 78 enmon Oven Dainese ee 0000 cece nen ome ose 0.H00 ‘Dhani EPS a8 Reson om om) om) oe?
Slide 22: Experienced Management Team
Experienced Management Team The State Bark and Trast Comoany on. et yar rete ‘cece pang ee me's Pence ar eecton The Mark Klein ~ President and CEO Mark AK 2 Hf qe eh ni He i il i ills
Slide 23: Experienced Management Team
Experienced Management Team Anthony Cosentino - EVP and CFO [Anthony V. Cosentino has serves as Executve Vice Present of $8 Financial ‘Group Ine since Maren 2010 hr Cosenting is a 1983 gracuate of Miami University Cord. Ono with a Bachetor of Science Depreé in Aecountng. and recehved his Master of B
Slide 24: Mark Klein – President and CEO
Mark Kiein ~ President and CEO Mark.Klein@vourstatebank.com Anthony Cosentino - EVP and CFO I ni
SB Financial Group — SMID-West Conference, Chicago, December 2013 on 6ix