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Press Release

SB One Bancorp Reports Record Diluted EPS of $0.66 for the Second Quarter 2019

Company Release - 7/25/2019 9:00 AM ET

PARAMUS, N.J., July 25, 2019 (GLOBE NEWSWIRE) -- SB One Bancorp (the “Company”) (Nasdaq: SBBX), the holding company for SB One Bank (the “Bank”), today reported net income of $6.2 million, or $0.67 per basic and $0.66 per diluted share, for the quarter ended June 30, 2019, an increase of 108.7%, as compared to net income of $3.0 million, or $0.38 per basic and diluted share, for the quarter ended June 30, 2018. The increase in net income for the quarter ended June 30, 2019 was driven by a $4.0 million, or 36.5%, increase in net interest income resulting from organic loan and deposit growth, and the merger with Enterprise Bank NJ (“Enterprise”), a $1.5 million gain on sales of securities and a $257 thousand increase in insurance commissions and fees partially offset by a one-time charge of $505 thousand for the disposal of leasehold improvements and rent expense due to the early termination of the lease of the Company’s corporate center in Rockaway, NJ, as compared to the same period last year.

The Company reported net income of $12.1 million, or $1.28 per basic and diluted share, for the six months ended June 30, 2019, an increase of 180.6%, as compared to $4.3 million, or $0.55 per basic and diluted share, for the same period last year. For the six months ended June 30, 2019, the Company reported net income, adjusted for a one-time tax effected charge for the disposal of leasehold improvements and rent expense of $353 thousand due to the early termination of the lease of its corporate center in Rockaway, NJ, of $12.4 million, or $1.32 per basic and diluted share, an increase of $5.3 million, or 73.9%, from net income, adjusted for tax effected merger-related expenses and non-recurring rebrand expenses of $2.7 million and $152 thousand, respectively, of $7.1 million, or $0.91 per basic and diluted share, for the quarter ended June 30, 2018.

The Company’s net income increased to $6.2 million, or $0.67 per basic and $0.66 per diluted share, for the quarter ended June 30, 2019, an increase of $421 thousand, or 7.2%, as compared to net income of $5.8 million, or $0.62 per basic and diluted share for the quarter ended March 31, 2019. For the quarter ended June 30, 2019, the Company reported net income, adjusted for a one-time tax effected charge for the disposal of leasehold improvements and rent expense of $353 thousand due to the early termination of the lease of its corporate center in Rockaway, NJ, of $6.6 million, or $0.70 per basic and diluted share an increase of $774 thousand, or 13.3% from $5.8 million, or $0.62 per basic and diluted share, for the quarter ended March 31, 2019.

“We continue to realize the financial benefits of our strong organic growth and recent mergers, which are now fully integrated. As such, I am pleased to report another strong quarter of financial performance,” said Anthony Labozzetta, President and CEO of SB One Bancorp and SB One Bank. “Our second quarter results were driven by an improved net interest margin, double-digit growth in deposits, particularly non-interest demand, and another strong contribution from our insurance subsidiary. While our commercial loan growth this quarter was light, our commercial loan production pipeline remains robust.”

Mr. Labozzetta added, “The health and wellbeing of our Bank is always top of mind, and we are happy to report that we moved our corporate headquarters to Paramus, N.J. The new location is central to the markets we serve, improves our operational efficiencies and reduces operating costs – so important as we continue to grow and expand throughout the region.”

Financial Performance
Net Income. For the quarter ended June 30, 2019, the Company reported net income of $6.2 million, or $0.67 per basic and $0.66 per diluted share, an increase of 108.7%, as compared to net income of $3.0 million, or $0.38 per basic and diluted share, for the quarter ended June 30, 2018.

The increase in net income for the quarter ended June 30, 2019 was driven by a $4.0 million, or 36.5%, increase in net interest income resulting from organic loan and deposit growth, and the Enterprise merger and a $1.5 million increase in non-interest income. The increase in non-interest income was driven by a $1.5 million gain on sale of securities and a $257 thousand increase in insurance commissions and fees. The gain on sale of securities was the result of the Company taking advantage of a market opportunity within the tax-free municipal securities sector. Non-interest income was partially offset by a one-time tax effected disposal of leasehold improvements and rent expense of $353 thousand as a result of the Company’s closure of its former corporate center. Non-interest expenses increased $946 thousand to $10.5 million for the second quarter 2019 as compared to $9.6 million for the second quarter 2018. The increase in non-interest expenses was mainly attributable to an increase in salaries and employee benefits of $923 thousand mainly resulting from the merger with Enterprise. In addition, occupancy increased $258 thousand resulting from the merger with Enterprise.

For the six months ended June 30, 2019, the Company reported net income of $12.1 million, or $1.28 per basic and diluted share, an increase of 180.6%, as compared to net income of $4.3 million, or $0.55 per basic and diluted share, for the same period last year. 

Net Interest Income. Net interest income on a fully tax equivalent basis increased $3.9 million, or 35.2%, to $15.2 million for the second quarter of 2019, as compared to $11.2 million for the same period in 2018. The increase in net interest income was largely due to a $430.6 million, or 32.8%, increase in average interest earning assets, principally loans receivable, which increased $404.5 million, or 36.4%, driven by organic growth and the December 2018 closing of the Enterprise merger. The net interest margin increased 0.06% to 3.49% for the second quarter of 2019, as compared to the same period in 2018, as a result of an increase in deposits, specifically non-interest bearing deposits, as a main source of funding for loan growth of $50.1 million, or 22.5%.

Net interest income on a fully tax equivalent basis increased $7.7 million, or 34.5%, to $29.8 million for the first six months of 2019 as compared to $22.2 million for the same period in 2018. The increase in net interest income was largely due to a $449.0 million, or 35.0%, increase in average interest earning assets, principally loans receivable, which increased $420.6 million, or 38.6% driven by organic growth and the Enterprise merger.

Provision for Loan Losses. Provision for loan losses increased $378 thousand, or 95.0%, to $776 thousand for the second quarter of 2019, as compared to $398 thousand for the same period in 2018.

Provision for loan losses increased $441 thousand, or 48.7%, to $1.3 million for the first six months of 2019, as compared to $906 thousand for the same period in 2018.

Non-interest Income. Non-interest income increased $1.5 million, or 52.4%, to $4.4 million for the second quarter of 2019, as compared to the same period in 2018. The growth was largely due to an increase of $1.5 million in gains on sale of securities. In addition, insurance commissions and fees relating to SB One Insurance Agency increased $257 thousand, or 14.0%, for the second quarter of 2019, as compared to the same period in 2018. The aforementioned increases were partially offset by a $390 thousand loss on the disposal of fixed assets relating to closing of the Company’s corporate center.

Non-interest income increased $2.3 million, or 39.9%, to $8.0 million for the first six months of 2019 as compared to the same period last year. The increase was principally due to $1.5 million increase in gain on sale of securities. In addition, insurance commissions and fees relating to SB One Insurance Agency increased $924 thousand, or 24.7%, largely attributable to a $373 thousand increase in contingency commission income. The aforementioned increases were partially offset by a $390 thousand loss on the disposal of fixed assets relating to closing of the Company’s corporate center.

Non-interest Expense. The Company’s non-interest expenses increased $946 thousand, or 9.9%, to $10.5 million for the second quarter of 2019, as compared to the same period in 2018. The increase in non-interest expenses occurred largely in salaries and employee benefits of $923 thousand, occupancy of $258 thousand and FDIC assessment of $181 thousand as result of the Company’s growth. The increase in non-interest expenses for the second quarter of 2019, as compared to the same period in 2018, was the result of the Company’s continued growth, inclusive of the Enterprise merger net of cost savings. The increase in occupancy was driven by the addition of 4 branches from the Enterprise merger and a one-time charge to rent expense of $123 thousand resulting from the closing the of the Company’s corporate center. The aforementioned increases were partially offset by decreases in advertising and promotions and loan collection costs of $162 thousand and $72 thousand, respectively.

The Company’s non-interest expenses decreased $470 thousand, or 2.2%, to $20.7 million for the first six months of 2019 as compared to the same period last year. The decrease in non-interest expenses was primarily due to a decrease in merger-related expenses of $3.7 million. The aforementioned decrease was partially offset by increases to salaries and employee benefits of $2.0 million, occupancy expenses of $435 thousand, FDIC assessment of $237 thousand, other expenses of $237 thousand and data processing of $209 thousand.

Income Tax Expense. The Company’s income tax expenses increased $940 thousand to $1.8 million for the second quarter of 2019, as compared to the same period last year. The Company’s effective tax rate for the second quarter of 2019 and 2018 was 22.7%.

The Company’s income tax expenses increased $2.2 million to $3.3 million for the first six months of 2019, as compared to the same period last year as a result of increased pre-tax income. The Company’s effective tax rate for the first six months of 2019 was 21.7%, as compared to 20.5% for the six months ended June 30, 2018.

Financial Condition
At June 30, 2019, the Company’s total assets were $1.9 billion, an increase of $70.6 million, or 3.9%, as compared to total assets of $1.8 billion at December 31, 2018. The increase was mainly attributable to an increase in loans receivable of $55.9 million, or 3.8%, to $1.5 billion.

The Company’s total deposits increased $122.5 million, or 9.1%, to $1.5 billion at June 30, 2019, from $1.4 billion at December 31, 2018. The growth in deposits was mostly due to an increase in interest bearing deposits of $104.2 million, or 9.5%, and an increase in non-interest bearing deposits of $18.4 million, or 7.1%, at June 30, 2019, as compared to December 31, 2018.

At June 30, 2019, the Company’s total stockholders’ equity was $192.4 million, an increase of $7.0 million when compared to December 31, 2018. At June 30, 2019, the leverage, Tier I risk-based capital, total risk-based capital and common equity Tier I capital ratios for the Bank were 10.32%, 12.10%, 12.72% and 12.10%, respectively, all in excess of the ratios required to be deemed “well-capitalized.”

Asset and Credit Quality
The ratio of non-performing assets (“NPAs”), which include non-accrual loans, loans 90 days past due and still accruing, troubled debt restructured loans currently performing in accordance with renegotiated terms and foreclosed real estate, to total assets decreased to 1.13% at June 30, 2019 as compared to 1.43% at December 31, 2018. NPAs exclude $2.8 million of Purchased Credit-Impaired (“PCI”) loans acquired through the merger with Community Bank of Bergen County (“Community Bank”). NPAs decreased $4.7 million to $21.1 million at June 30, 2019, as compared to $25.8 million at December 31, 2018, resulting from a non-accrual loan payoff of $4.3 million. Non-accrual loans, excluding $2.8 million of PCI loans, decreased $4.5 million, or 21.6%, to$16.2 million at June 30, 2019, as compared to $20.7 million at December 31, 2018. Loans past due 30 to 89 days totaled $8.9 million at June 30, 2019, representing an increase of $5.1 million, or 135.1%, as compared to $3.8 million at December 31, 2018.

The Company continues to actively market its foreclosed real estate properties, the value of which decreased $573 thousand to $3.6 million at June 30, 2019 as compared to $4.1 million at December 31, 2018. The decrease in foreclosed real estate properties was largely attributable to the sale of three properties totaling $902 thousand which was partially offset by one new foreclosed property valued at $335 thousand. At June 30, 2019, the Company’s foreclosed real estate properties had an average carrying value of approximately $358 thousand per property.

The Company’s allowance for loan losses increased $852 thousand, or 9.7%, to $9.6 million, at June 30, 2019 as compared to $8.8 million at December 31, 2018. The Company’s outstanding credit mark recorded on the legacy Community Bank and Enterprise portfolios of $441.5 million totaled $7.3 million at June 30, 2019. The Company’s combined coverage of allowance for loan loss and credit mark on the legacy Community Bank and Enterprise portfolios totaled $17.0 million, or 1.11% of the overall loan portfolio, at June 30, 2019. The Company recorded $1.3 million in provision for loan losses for the six months ended June 30, 2019 as compared to $906 thousand for the six months ended June 30, 2018. Additionally, the Company recorded net charge-offs of $495 thousand for the six months ended June 30, 2019, as compared to $23 thousand in net recoveries for the six months ended June 30, 2018. The allowance for loan losses as a percentage of non-accrual loans increased to 59.3% at June 30, 2019 from 43.5% at December 31, 2018.

About SB One Bancorp

SB One Bancorp (Nasdaq: SBBX), is the holding company for SB One Bank, a full-service, commercial bank that operates regionally with 18 branch locations in New Jersey and New York. Established in 1975, SB One Bank's strength is in its ability to build strong personal relationships with its customers and to serve the communities in which it operates. In addition to its branches and loan production offices, SB One Bank offers a full-service insurance agency, SB One Insurance Agency, Inc. and wealth services through SB One Wealth. SB One Bank reinforces its commitment to the communities in which it lives and serves through the SB One Foundation, Inc. which supports various local charitable organizations.

SB One Bancorp was recently added to the Russell 2000® Index and Russell 3000® Index. In 2017, it was recognized as one of the top 29 banks and thrifts nationwide and one of three from New Jersey that comprise the Sandler O’Neill Sm-All Stars Class of 2017. SB One Bancorp is one of the 50 Fastest Growing Companies in New Jersey as ranked by NJBIZ Magazine. SB One Bancorp President and Chief Executive Officer, Anthony Labozzetta, was named one of America’s Business Leaders in Banking by Forbes magazine and American Banker’s Community Banker of the Year in 2016.

For more details on SB One Bank, visit: www.SBOne.bank

Forward-Looking Statements

This press release contains statements that are forward looking and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements that may be identified by the use of words such as "expect," "estimate," “assume,” "believe," "anticipate," "will," "forecast," "plan," "project" or similar words. Such statements are based on SB One Bancorp’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, (1) difficulties and delays in integrating the business or fully realizing cost savings and other benefits; (2) operating costs, customer loss and business disruption following the mergers with Community Bank and Enterprise, including adverse effects on relationships with employees, may be greater than expected; (3) changes to interest rates; (4) the ability to control costs and expenses; (5) general economic conditions; (6) the success of SB One Bancorp’s efforts to diversify its revenue base by developing additional sources of non-interest income while continuing to manage its existing fee-based business; and (7) risks associated with the quality of SB One Bancorp’s assets and the ability of its borrowers to comply with repayment. Further information about these and other relevant risks and uncertainties may be found in SB One Bancorp’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in subsequent filings with the Securities and Exchange Commission. SB One Bancorp undertakes no obligation to publicly release the results of any revisions to those forward looking statements that may be made to reflect events or circumstances after this date or to reflect the occurrence of unanticipated events.

SB ONE BANCORP
Anthony Labozzetta, President/CEO
Adriano Duarte, CFO
(p) 844-256-7328

 
SB ONE BANCORP
SUMMARY FINANCIAL HIGHLIGHTS
(In Thousands, Except Percentages and Per Share Data)
(Unaudited)
 
            6/30/2019 VS.
  6/30/2019 3/31/2019 12/31/2018 6/30/2018 12/31/2018 3/31/2019 6/30/2018
BALANCE SHEET HIGHLIGHTS - Period End Balances                       
Total securities $198,191  $196,081  $186,217  $179,943   6.4 %  1.1 %  10.1 %
Total loans  1,530,668   1,513,645   1,474,775   1,136,546   3.8 %  1.1 %  34.7 %
Allowance for loan losses  (9,627)  (9,190)  (8,775)  (8,264)  9.7 %  4.8 %  16.5 %
Total assets  1,866,344   1,840,129   1,795,703   1,437,302   3.9 %  1.4 %  29.9 %
Total deposits  1,476,488   1,461,324   1,353,939   1,061,599   9.1 %  1.0 %  39.1 %
Total borrowings and junior subordinated debt  180,535   179,370   247,765   215,793   (27.1)%  0.6 %  (16.3)%
Total shareholders' equity  192,416   189,695   185,444   148,823   3.8 %  1.4 %  29.3 %
                         
FINANCIAL DATA - QUARTER ENDED:                         
Net interest income (tax equivalent) (a) $15,161  $14,666  $11,575  $11,214   31.0 %  3.4 %  35.2 %
Provision for loan losses  776   571   210   398   269.5 %  35.9 %  95.0 %
Total other income  4,392   3,633   2,493   2,881   76.2 %  20.9 %  52.4 %
Total other expenses  10,526   10,178   10,273   9,580   2.5 %  3.4 %  9.9 %
Income before provision for income taxes (tax equivalent)  8,251   7,550   3,585   4,117   130.2 %  9.3 %  100.4 %
Provision for income taxes  1,836   1,500   991   896   85.3 %  22.4 %  104.9 %
Taxable equivalent adjustment (a)  171   227   807   229   (78.8)%  (24.7)%  (25.3)%
Net income $6,244  $5,823  $1,787  $2,992   249.4 %  7.2 %  108.7 %
                         
Net income per common share - Basic $0.67  $0.62  $0.29  $0.38   131.0 %  8.1 %  76.0 %
Net income per common share - Diluted $0.66  $0.62  $0.29  $0.38   127.6 %  6.5 %  73.1 %
                         
Return on average assets  1.35 % 1.28 % 0.53 % 0.85 % 153.0 %  5.7 %  57.9 %
Return on average equity  12.98 % 12.39 % 4.97 % 8.10 % 161.3 %  4.8 %  60.3 %
Efficiency ratio (b)  54.31 % 56.32 % 77.47 % 69.09 % (29.9)%  (3.6)%  (21.4)%
Net interest margin (tax equivalent)  3.49 % 3.46 % 3.55 % 3.43 % (1.7)%  0.9 %  1.7 %
Avg. interest earning assets/Avg. interest bearing liabilities  1.27   1.25   1.27   1.28   (0.5)%  1.0 %  (0.9)%
                         
FINANCIAL DATA - YEAR TO DATE:                         
Net interest income (tax equivalent) (a) $29,827        $22,176           34.5 %
Provision for loan losses  1,347         906           48.7 %
Total other income  8,025         5,738           39.9 %
Total other expenses  20,704         21,174           (2.2)%
Income before provision for income taxes (tax equivalent)  15,801         5,834           170.8 %
Provision for income taxes  3,336         1,111           200.3 %
Taxable equivalent adjustment (a)  398         423           (5.9)%
Net income $12,067        $4,300           180.6 %
                         
Net income per common share - Basic $1.28        $0.55           132.7 %
Net income per common share - Diluted $1.28        $0.55           132.7 %
                         
Return on average assets  1.31 %       0.63 %         109.2 %
Return on average equity  12.69 %       5.90 %         115.1 %
Efficiency ratio (b)  55.28 %       77.02 %         (28.2)%
Net interest margin (tax equivalent)  3.47 %       3.49 %         (0.6)%
Avg. interest earning assets/Avg. interest bearing liabilities  1.26         1.28           (1.2)%
                         
SHARE INFORMATION:                         
Book value per common share $20.35  $20.03  $19.45  $18.77   4.6 %  1.6 %  8.4 %
Tangible book value per common share  17.25   16.93   16.36   15.48   5.4 %  1.9 %  11.4 %
Outstanding shares- period ending  9,456,778   9,470,730   9,532,943   7,929,706   (0.8)%  (0.1)%  19.3 %
Average diluted shares outstanding (year to date)  9,406,175   9,460,118   7,921,269   7,848,468   18.7 %  (0.6)%  19.8 %
                         
CAPITAL RATIOS:                         
Total equity to total assets  10.31 % 10.31 % 10.32 % 10.35 % (0.1)%  0.0 %  (0.4)%
Leverage ratio (c)  10.32 % 10.21 % 12.06 % 10.62 % (14.4)%  1.1 %  (2.8)%
Tier 1 risk-based capital ratio (c)  12.10 % 12.09 % 12.34 % 12.87 % (1.9)%  0.1 %  (6.0)%
Total risk-based capital ratio (c)  12.72 % 12.70 % 12.94 % 13.60 % (1.7)%  0.2 %  (6.5)%
Common equity Tier 1 capital ratio (c)  12.10 % 12.09 % 12.34 % 12.87 % (1.9)%  0.1 %  (6.0)%
                         
ASSET QUALITY:                         
Non-accrual loans (e) $16,243  $20,638  $20,704  $18,601   (21.5)%  (21.3)% (12.7)%
Loans 90 days past due and still accruing  -   -   -   -   - %  - % - %
Troubled debt restructured loans ("TDRs") (d)  1,246   1,035   906   1,784   37.5 %  20.4 % (30.2)%
Foreclosed real estate  3,576   3,241   4,149   3,414   (13.8)%  10.3 %  4.7 %
Non-performing assets ("NPAs") $21,065  $24,914  $25,759  $23,799   (18.2)%  (15.4)%  (11.5)%
                         
Foreclosed real estate, criticized and classified assets (e) $29,039  $28,704  $24,006  $22,529   21.0 %  1.2 %  28.9 %
Loans past due 30 to 89 days $8,904  $4,842  $3,787  $2,868   135.1 %  83.9 %  210.5 %
Charge-offs (Recoveries), net (quarterly) $339  $156  $30  $(38)  1,030.0 %  117.3 %  (992.1)%
Charge-offs (Recoveries), net as a % of average loans (annualized)  0.09 % 0.04 % 0.01 % (0.01)% 813.2 %  105.7 %  (754.2)%
Non-accrual loans to total loans  1.06 % 1.36 % 1.40 % 1.64 % (24.2)%  (22.2)%  (35.2)%
NPAs to total assets  1.13 % 1.35 % 1.43 % 1.66 % (21.1)%  (16.6)%  (31.8)%
NPAs excluding TDR loans (d) to total assets  1.06 % 1.30 % 1.35 % 1.53 % (21.5)%  (18.2)%  (30.7)%
Non-accrual loans to total assets  0.87 % 1.12 % 1.12 % 1.29 % (22.5)%  (22.4)%  (32.8)%
Allowance for loan losses as a % of non-accrual loans  59.27 % 44.53 % 43.51 % 44.43 % 36.2 %  33.1 %  33.4 %
Allowance for loan losses to total loans  0.63 % 0.61 % 0.60 % 0.73 % 5.7 %  3.6 %  (13.5)%
 
(a) Full taxable equivalent basis, using a 30.09% effective tax rate and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(b) Efficiency ratio calculated non-interest expense divided by net interest income plus non-interest income
(c) SB One Bank capital ratios
(d) Troubled debt restructured loans currently performing in accordance with renegotiated terms
(e) PCI loans acquired through merger with Community Bank excluded from non-accrual loans and criticized and classified assets totaled $3.0 million


SB ONE BANCORP
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
 
ASSETSJune 30, 2019 December 31, 2018
     
Cash and due from banks$9,754  $11,768 
Interest-bearing deposits with other banks 16,303   14,910 
Cash and cash equivalents 26,057   26,678 
      
Interest bearing time deposits with other banks 200   200 
Securities available for sale, at fair value 194,167   182,139 
Securities held to maturity 4,024   4,078 
Other Bank Stock, at cost 8,867   11,764 
      
Loans receivable, net of unearned income 1,530,668   1,474,775 
Less: allowance for loan losses 9,627   8,775 
Net loans receivable 1,521,041   1,466,000 
      
Foreclosed real estate 3,576   4,149 
Premises and equipment, net 19,745   19,215 
Right-of-use assets, net 5,211   - 
Accrued interest receivable 6,352   6,546 
Goodwill and intangibles 29,242   29,446 
Bank-owned life insurance 36,240   35,778 
Other assets 11,622   9,710 
      
Total Assets$1,866,344  $1,795,703 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
Liabilities:     
Deposits:     
Non-interest bearing$278,188  $259,807 
Interest bearing 1,198,300   1,094,132 
Total Deposits 1,476,488   1,353,939 
      
Borrowings 152,671   219,906 
Lease liability 5,220   - 
Accrued interest payable and other liabilities 11,685   8,555 
Subordinated debentures 27,864   27,859 
      
Total Liabilities 1,673,928   1,610,259 
      
Total Stockholders' Equity 192,416   185,444 
      
Total Liabilities and Stockholders' Equity$1,866,344  $1,795,703 


SB ONE BANCORP
CONSOLIDATED STATEMENTS OF INCOME 
(Dollars In Thousands Except Per Share Data)
(Unaudited)
 
 Three Months Ended June 30, Six Months Ended
  2019   2018  6/30/2019 6/30/2018
INTEREST INCOME         
         
Loans receivable, including fees$19,059  $12,562  $37,219  $24,462 
Securities:        
Taxable 1,277   804   2,452   1,540 
Tax-exempt 337   449   785   830 
Federal funds sold -   -   -   - 
Interest bearing deposits 65   16   114   46 
Total Interest Income 20,738   13,831   40,570   26,878 
         
INTEREST EXPENSE        
Deposits 4,459   1,659   8,323   3,117 
Borrowings 973   874   2,187   1,380 
Junior subordinated debentures 316   313   631   628 
Total Interest Expense 5,748   2,846   11,141   5,125 
         
Net Interest Income 14,990   10,985   29,429   21,753 
PROVISION FOR LOAN LOSSES 776   398   1,347   906 
Net Interest Income after Provision for Loan Losses 14,214   10,587   28,082   20,847 
         
OTHER INCOME        
Service fees on deposit accounts 367   311   697   639 
ATM and debit card fees 278   250   509   463 
Bank owned life insurance 232   188   462   373 
Insurance commissions and fees 2,096   1,839   4,658   3,734 
Investment brokerage fees 21   41   77   63 
Gain (loss) gain on securities transactions 1,524   36   1,524   36 
(Loss) gain on disposal of fixed assets (381)  9   (381)  9 
Other 255   207   479   421 
Total Other Income 4,392   2,881   8,025   5,738 
         
OTHER EXPENSES        
Salaries and employee benefits 6,334   5,411   12,464   10,469 
Occupancy, net 985   727   1,764   1,329 
Data processing 999   939   1,939   1,730 
Furniture and equipment 314   326   632   607 
Advertising and promotion 123   285   255   341 
Professional fees 372   290   834   619 
Director fees 180   142   325   289 
FDIC assessment 281   100   447   210 
Insurance 33   52   63   147 
Stationary and supplies 90   89   174   146 
Merger-related expenses -   446   -   3,739 
Loan collection costs 17   89   137   150 
Expenses and write-downs related to foreclosed real estate 96   1   161   208 
Amortization of intangible assets 101   60   203   121 
Other 601   623   1,306   1,069 
Total Other Expenses 10,526   9,580   20,704   21,174 
         
Income before Income Taxes 8,080   3,888   15,403   5,411 
INCOME TAX EXPENSE  1,836   896   3,336   1,111 
Net Income $6,244  $2,992  $12,067  $4,300 
         
EARNINGS PER SHARE        
         
Basic$0.67  $0.38  $1.28  $0.55 
Diluted$0.66  $0.38  $1.28  $0.55 


SB ONE BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
             
  Three Months Ended June 30,
  2019
 2018
  Average   Average Average   Average
  Balance Interest Rate (2) Balance Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3) $46,888  $508  4.35% $64,726  $678  4.20%
Taxable  158,258   1,277  3.24%  126,462   804  2.55%
Total securities  205,146   1,785  3.49%  191,188   1,482  3.11%
Total loans receivable (1) (4)  1,516,945   19,059  5.04%  1,112,480   12,562  4.53%
Other interest-earning assets  20,386   65  1.28%  8,246   16  78.00%
Total earning assets  1,742,477   20,909  4.81%  1,311,914   14,060  4.30%
             
Non-interest earning assets  118,393       96,979     
Allowance for loan losses  (9,335)      (8,077)    
Total Assets $1,851,535      $1,400,816     
             
Sources of Funds:            
Interest bearing deposits:            
NOW $249,647  $453  0.73% $250,143  $347  0.56%
Money market  230,766   1,165  2.02%  91,597   287  1.26%
Savings  226,511   372  0.66%  220,075   191  0.35%
Time  494,823   2,469  2.00%  263,248   834  1.27%
Total interest bearing deposits  1,201,747   4,459  1.49%  825,063   1,659  0.81%
Borrowed funds  145,937   973  2.67%  173,841   874  2.02%
Subordinated debentures  27,863   316  4.55%  27,852   313  4.51%
Total interest bearing liabilities  1,375,547   5,748  1.68%  1,026,756   2,846  1.11%
             
Non-interest bearing liabilities:            
Demand deposits  272,667       222,558     
Other liabilities  10,935       3,736     
Total non-interest bearing liabilities  283,602       226,294     
Stockholders' equity  192,386       147,766     
Total Liabilities and Stockholders' Equity $1,851,535      $1,400,816     
             
Net Interest Income and Margin (5)    15,161  3.49%    11,214  3.43%
Tax-equivalent basis adjustment    (171)      (229)  
Net Interest Income   $14,990      $10,985   
 
(1) Includes loan fee income
(2) Average rates on securities are calculated on amortized costs
(3) Full taxable equivalent basis, using an effective tax rate of 30.09% in 2019 and 2018 and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(4) Loans outstanding include non-accrual loans
(5) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets
 
 
SB ONE BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
   
  Three Months Ended June 30, 2019 Three Months Ended March 31, 2019
  Average   Average Average   Average
  Balance Interest Rate (2) Balance Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3) $46,888  $508  4.35% $62,654  $675  4.37%
Taxable  158,258   1,277  3.24%  142,137   1,175  3.35%
Total securities  205,146   1,785  3.49%  204,791   1,850  3.66%
Total loans receivable (1) (4)  1,516,945   19,059  5.04%  1,500,604   18,160  4.91%
Other interest-earning assets  20,386   65  1.28%  14,691   49  1.35%
Total earning assets  1,742,477   20,909  4.81%  1,720,086   20,059  4.73%
             
Non-interest earning assets  118,393       114,358     
Allowance for loan losses  (9,335)      (8,815)    
Total Assets $1,851,535      $1,825,629     
             
Sources of Funds:            
Interest bearing deposits:            
NOW $249,647  $453  0.73% $255,959  $446  0.71%
Money market  230,766   1,165  2.02%  240,936   1,178  1.98%
Savings  226,511   372  0.66%  221,608   327  0.60%
Time  494,823   2,469  2.00%  436,376   1,913  1.78%
Total interest bearing deposits  1,201,747   4,459  1.49%  1,154,879   3,864  1.36%
Borrowed funds  145,937   973  2.67%  188,983   1,214  2.61%
Subordinated debentures  27,863   316  4.55%  27,860   315  4.59%
Total interest bearing liabilities  1,375,547   5,748  1.68%  1,371,722   5,393  1.59%
             
Non-interest bearing liabilities:            
Demand deposits  272,667       259,363     
Other liabilities  10,935       6,481     
Total non-interest bearing liabilities  283,601       265,844     
Stockholders' equity  192,386       188,063     
Total Liabilities and Stockholders' Equity $1,851,535      $1,825,629     
             
Net Interest Income and Margin (5)    15,161  3.49%    14,666  3.46%
Tax-equivalent basis adjustment    (171)      (227)  
Net Interest Income   $14,990      $14,439   
             
(1) Includes loan fee income
(2) Average rates on securities are calculated on amortized costs
(3) Full taxable equivalent basis, using an effective tax rate of 30.09% in 2019 and 2018 and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(4) Loans outstanding include non-accrual loans
(5) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets
 
 
SB ONE BANCORP
COMPARATIVE AVERAGE BALANCES AND AVERAGE INTEREST RATES
(Dollars In Thousands)
(Unaudited)
 
  Six Months Ended June 30,
  2019
 2018
  Average   Average Average   Average
  Balance Interest Rate (2) Balance Interest Rate (2)
Earning Assets:            
Securities:            
Tax exempt (3) $54,728  $1,183  4.36% $59,883  $1,253  4.22%
Taxable  150,242   2,452  3.29%  123,635   1,540  2.51%
Total securities  204,970   3,635  3.58%  183,518   2,793  3.07%
Total loans receivable (1) (4)  1,508,820   37,219  4.97%  1,088,238   24,462  4.53%
Other interest-earning assets  17,554   114  1.31%  10,576   46  0.88%
Total earning assets  1,731,344   40,968  4.77%  1,282,332   27,301  4.29%
             
Non-interest earning assets  116,385       96,349     
Allowance for loan losses  (9,076)      (7,792)    
Total Assets $1,838,653      $1,370,889     
             
Sources of Funds:            
Interest bearing deposits:            
NOW $252,786  $899  0.72% $254,884  $745  0.59%
Money market  235,823   2,343  2.00%  94,016   535  1.15%
Savings  224,073   699  0.63%  221,005   268  0.24%
Time  465,761   4,382  1.90%  264,189   1,569  1.20%
Total interest bearing deposits  1,178,443   8,323  1.42%  834,094   3,117  0.75%
Borrowed funds  167,341   2,187  2.64%  143,034   1,380  1.95%
Subordinated debentures  27,861   631  4.57%  27,851   628  4.55%
Total interest bearing liabilities  1,373,645   11,141  1.64%  1,004,979   5,125  1.03%
             
Non-interest bearing liabilities:            
Demand deposits  266,052       215,665     
Other liabilities  8,720       4,418     
Total non-interest bearing liabilities  274,772       220,083     
Stockholders' equity  190,236       145,827     
Total Liabilities and Stockholders' Equity $1,838,653      $1,370,889     
             
Net Interest Income and Margin (5)    29,827  3.47%    22,176  3.49%
Tax-equivalent basis adjustment    (398)      (423)  
Net Interest Income   $29,429      $21,753   
 
(1) Includes loan fee income
(2) Average rates on securities are calculated on amortized costs
(3) Full taxable equivalent basis, using an effective tax rate of 30.09% in 2019 and 2018 and adjusted for TEFRA (Tax and Equity Fiscal Responsibility Act) interest expense disallowance
(4) Loans outstanding include non-accrual loans
(5) Represents the difference between interest earned and interest paid, divided by average total interest-earning assets


SB ONE BANCORP
Segment Reporting
(Dollars In Thousands)
(Unaudited)
 
 Three Months Ended June 30, 2019 Three Months Ended June 30, 2018
 Banking and         Banking and        
 Financial Insurance     Financial Insurance    
 Services Services Total Services Services Total
Net interest income from external sources$14,990  $-  $14,990  $10,985  $-  $10,985 
Other income from external sources 2,247