SB Financial Group, Inc. · NASDAQ:SBFG
SB Financial — Shareholder Meeting (April 2017)
40 slides from SB Financial's shareholder meeting presentation, Apr 19, 2017
Slide 1: 2017 Annual Meeting of Shareholders
1 PRESENTATION NAME TO GO HERE 201 7 ANNUAL MEETING OF SHAREHOLDERS
Slide 2: Annual Meeting Agenda
10 :30am Business Meeting • Four Shareholder Proposals Business Overview • SB Financial Group, Inc. • 201 6 Performance Adjournment ANNUAL MEETING AGENDA 2
Slide 3: Voting Results
Ms. Cindy Batt, SVP Ms. Carol Robbins, SVP Inspectors of Election 3 VOTING RESULTS
Slide 4: Shareholder Proposals: Election of Directors
SHAREHOLDER PROPOSALS Proposal 1 – To elect three (3) directors to serve for terms of three (3) years each: Mr. Robert A. Fawcett, Jr. Mr. Gaylyn J. Finn Ms. Rita A. Kissner 4
Slide 5: Shareholder Proposals: Ratify BKD, LLP as Auditor
SHAREHOLDER PROPOSALS Proposal 2 – To ratify the appointment of BKD, LLP as the independent registered public accounting firm of SB Financial Group, Inc. for the fiscal year ending December 31, 201 7 . 5
Slide 6: Shareholder Proposals: 2017 Stock Incentive Plan
SHAREHOLDER PROPOSALS Proposal 3 – To approve the 2017 SB Financial Group Stock Incentive Plan 6
Slide 7: Shareholder Proposals: Advisory Vote on Executive Compensation
SHAREHOLDER PROPOSALS Proposal 4 – To approve a non - binding advisory resolution to approve the compensation of the Company’s named executive officers. 7
Slide 8: Proposal Questions, Comments, and Discussion
PROPOSAL QUESTIONS , COMMENTS, AND DISCUSSION 8
Slide 9: Regional Investor Meetings
KOSCIUSK O REGIONAL INVESTOR MEETINGS Ft. Wayne Sycamore Hills May 3 rd 9 Dublin Embassy Suites May 2 nd Toledo Inverness May 9 th Defiance Defiance College April 24 th Archbold Northwest State May 8 th Findlay Findlay Country Club April 25 th Lima Shawnee Country Club May 4 th
Slide 10: Board Leadership
BOARD LEADERSHIP SB FINANCIAL GROUP • Richard L. Hardgrove LEAD INDEPENDENT DIRECTOR AUDIT COMMITTEE COMPENSATION COMMITTEE • Chair: Gaylyn J. Finn • Gary M. Cates • Rita A. Kissner • Timothy J. Stolly • Chair: Rita A. Kissner • George W. Carter • Gary M. Cates • Robert A. Fawcett Jr. • Richard L. H
Slide 11: Board Leadership: Committees
BOARD LEADERSHIP SB FINANCIAL GROUP GOVERNANCE AND NOMINATING COMMITTEE LOAN REVIEW COMMITTEE TRUST INVESTMENT REVIEW COMMITTEE EXECUTIVE LOAN COMMITTEE • Chair: Timothy J. Stolly • Robert A. Fawcett Jr. • Richard L. Hardgrove • William G. Martin • Chair: George W. Carter • Gaylyn J. Finn • Chair: G
Slide 12: Voting Results
VOTING RESULTS Ms. Cindy Batt, SVP Ms. Carol Robbins, SVP Inspectors of Election 12
Slide 13: Business Overview: Building a High-Performance Company
B USINESS OVERVIEW BUILDING A HIGH - PERFORMANCE COMPANY 13
Slide 14: Safe Harbor Statement
SAFE HARBOR STATEMENT SB FINANCIAL GROUP Certain statements within this document, which are not statements of historical fact, constitute forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward - looking statements involve risks and uncertaint
Slide 15: Our Vision
OUR VISION COMMITMENT TO S TAKEHOLDERS PASSION FOR SERVICE Our Vision over the next three years is to become a high - performing ( > 90th percentile) $1 Billion, independent financial services company set apart by our staff and their passion for service, our holistic approach to client care, and our
Slide 16: Corporate Overview
KOSCIUSK O • NASDAQ: SBFG • Defiance , Ohio - Headquarters Since 1902 • Corporate Staff Members - 245 • Average Daily Volume for 2016 - 6,000 • Market Cap: $101 million ($16.05/share 12/31/2016 ) • 4.8 Million Common Shares; 1.4 Million shares of SBFGP CORPORATE OVERVIEW SB FINANCIAL GROUP 16 FULL S
Slide 17: Our Organization & Leadership
OUR ORGANIZATION & LEADERSHIP CORPORATE LEADERSHIP • Mark Klein – Ch airman, President and CEO • Tony Cosentino – EVP and CFO • Keeta Diller – SVP, Corporate Secretary (Dir. of Operations – State Bank) REGIONAL /COMMERCIAL LEADERSHIP • Jon Gathman, EVP and Senior Lender • David Homoelle – Regional P
Slide 18: State Bank Business Line Leaders
STATE BANK BUSINESS LINE LEADERS SB FINANCIAL GROUP RETAIL BANKING COMMERCIAL Chris Jakyma – EVP Chief Wealth Management Officer David Bell – EVP Retirement Services Manager Charles Cammock – SVP Retirement Specialist John Cates - VP Jake Oberlin - VP PRIVATE CLIENT GROUP Crystal Ellerbr
Slide 19: Our Organization & Leadership: RDSI/DCM
OUR ORGANIZATION & LEADERSHIP RDSI/DCM LEADERSHIP • Mark Klein – Chairman, President and CEO • Gary Saxman, IT Technology Manager • Yvonne Swayze, VP - Operations • Bill Brandt, Sales SB FINANCIAL GROUP STATE BANK DCM 19
Slide 20: Leverage Our Business-Line Expertise
LEVERAG E OUR BUSINESS - LINE EXPERTISE • Retail/PCG • Commercial/SBA • Mortgage Banking • Wealth Management /Brokerage • Item Processing/Statement Production OPTIMIZ E OUR DELIVERY CHANNELS • Regional Sales Leadership • Business Line Strategic Plans SCALE OUR BRAND • Holistic Client Care BALANCE OU
Slide 21: Key Initiatives
Become a Top - Decil e , Independent Financial Services Company KEY INITIATIVES 21 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 operational exce
Slide 22: Return on Average Assets (ROAA)
RETURN ON AVERAGE ASSETS (ROAA) SB FINANCIAL GROUP 0.00 0.25 0.50 0.75 1.00 1.25 2012 2013 2014 2015 2016 ROAA SBFG Peer Group 75th Percentile* * Peer group consists of SNL 3Q 201 6 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $500 million an
Slide 23: High Performance: Peer Banks
SB FINANCIAL GROUP 23 90 th Percentile Peer Banks with an ROAA >1% Peer Banks Above Median Peer Banks – Assets between $.5B and $1.2B HIGH PERFORMANCE 7 Institutions (Including SBFG) 10 Institutions 33 Institutions 65 Institutions
Slide 24: High-Level Performance Drivers
HIGH - LEVEL PERFORMANCE DRIVERS SB FINANCIAL GROUP 24 2016 2015 SBA Volume $8 MM $9 MM $383 MM $323 MM Residential volume Deposit Growth 15 % 6 % Loan Growth 16 % 8 % 45% 15% Net Income growth 1.06 % 1.11 % ROAA
Slide 25: Key Initiatives
Become a Top - Dec ile , Independent Financial Services Company KEY INITIATIVES 25 Sustain asset quality Expand product service utilization by new and existing customers Strengthen penetration in all markets served Deliver gains in operational excellence Increase profitability through ongoing divers
Slide 26: Increase Profitability
INCREASE PROFITABILITY $35.58 $34.86 $33.76 $39.05 $43.74 $4.80 $5.20 $5.30 $7.60 $8.80 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2012 2013 2014 2015 2016 NET INCOME (MIL) REVENUE (MIL) REVENUE/NET INCOME SBA RDSI Mortgage Service Charges Wealth Managem ent Net Inte
Slide 27: Strengthen Market Penetration
STRENGTHEN MARKET PENETRATION $333 $249 $220 $323 $383 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $0 $1 $2 $3 $4 $5 $6 $7 2012 2013 2014 2015 2016 MORTGAGE VOLUME (MIL) MORTGAGE GAIN ON SALE (MIL) MORTGAGE GAIN ON SALE/VOLUME NW Ohio Columbus Findlay Total $ Originations IN ALL MARKETS SERVED 27
Slide 28: Key Initiatives
Strengthen penetration in all markets served Increase profitability through ongoing diversification of revenue streams Sustain asset quality Deliver gains in operational excellence Expand product service utilization by new and existing customers Become a Top - Deci le, Independent Financial Services
Slide 29: Strengthen Market Penetration in All Markets Served
STRENGTHEN MARKET PENETRATION IN ALL MARKETS SERVED Toledo 27% Columbus 2 4 % Ft. Wayne 13 % 29 Defiance 9% Findlay 154 %
Slide 30: Key Initiatives
Expand product service utilization by new and existing customers Increase profitability through ongoing diversification of revenue streams Sustain asset quality Deliver gains in operational excellence Strengthen penetration in all markets served Become a Top - Dec ile , Independent Financial Service
Slide 31: Expand Product Utilization by New and Existing Customers
EXPAND PRODUCT U TILIZATION BY NEW AND EXISTING CUSTOMERS 71,240 73,665 75,756 75,154 76,847 80,573 24,012 24,659 25,490 25,381 26,076 27,368 '- 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 '- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2011 2012 2013 2014 2015 2016 HOUSEHOLDS
Slide 32: Expand Product Utilization: Referrals and New Business
EXPAND PRODUCT U TILIZATION BY NEW AND EXISTING CUSTOMERS 2,328 2,158 2,683 1,920 2,182 2,416 839 954 1,100 909 1,099 1,140 $64.8 $78.3 $59.9 $48.0 $61.9 $103.5 $0 $20 $40 $60 $80 $100 $120 0 700 1,400 2,100 2,800 3,500 2011 2012 2013 2014 2015 2016 NEW BUSINESS (MIL) REFERRALS REFERRALS/NEW BUSINES
Slide 33: Key Initiatives
Become a Top - Dec ile , Independent Financial Services Company KEY INITIATIVES 33 Deliver gains in operational excellence Increase profitability through ongoing diversification of revenue streams Sustain asset quality Expand product service utilization by new and existing customers Strengthen penet
Slide 34: Deliver Gains in Operational Excellence
• Acceleration of electronic transactions versus in - store transactions DELIVER GAINS IN OPERATIONAL EXCELLENCE 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2009 2010 2011 2012 2013 2014 2015 2016 ELECTRONIC TRANSACTIONS PER YEAR (MIL) ELECTRONIC TRANSACTI
Slide 35: Key Initiatives
Increase profitability through ongoing diversification of revenue streams Deliver gains in operational excellence Expand product service utilization by new and existing customers Strengthen penetration in all markets served Sustain asset quality Become a Top - Dec ile , Independent Financial Service
Slide 36: Sustain Asset Quality
SUSTAIN ASSET Q UALITY 1.60 1.40 1.14 0.92 1.15 0.65 2.66 2.77 2.26 1.91 1.41 1.26 1.88 1.69 1.40 1.26 1.07 0.76 0.00 0.70 1.40 2.10 2.80 3.50 2011 2012 2013 2014 2015 2016 PERCENTAGE NON - PERFORMING ASSETS / TOTAL ASSETS SBFG Peer Group Median* Top Quartile* 2016 - 87th Percentile * Peer group con
Slide 37: Sustain Asset Quality: NCOs/Average Loans
SUSTAIN ASSET Q UALITY * Peer group consists of SNL 3Q 201 6 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $500 million and $1. 2 billion. 0.00% 0.23% 0.45% 0.68% 0.90% 2011 2012 2013 2014 2015 2016 NCOs/AVG. LOANS SBFG Peer Median* Top Quarti
Slide 38: Key Initiatives
Become a Top - Dec ile , Independent Financial Services Company KEY INITIATIVES 38 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 operational exce
Slide 39: Stock Performance
STOCK PERFORMANCE 39 Other Retail Ownership, 60% Institutional Ownership, 28% 0.00% 100.00% 200.00% 300.00% 400.00% 500.00% 600.00% 700.00% 2011 2012 2013 2014 2015 2016 Total Return Performance SB Financial Group, Inc. NASDAQ Composite SNL U.S. Bank NASDAQ 550% TSR 35% CAGR
Slide 40: Mark A. Klein – Chairman, President and CEO
MARK A. KLEIN – CHAIRMAN, PRESIDENT AND CEO SB FINANCIAL GROUP, INC. 40
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