Good day and welcome to the SB Financial Group Fourth Quarter 2015 Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Melissa Short, Executive Assistant. Please go ahead.

Good afternoon, everyone. I would like to remind you that this conference call is being broadcast live over the Internet and will be also archived and available on our website at www.yoursbfinancial.com under the Investor Relations tab. Joining me today are Mark Klein, Chairman, President and CEO; Tony Cosentino, Chief Financial Officer; and Jon Gathman, Senior Lending Officer. Before I turn the call over to Mr. Klein, let me add that this call may contain certain forward-looking statements regarding SB Financial Group's financial performance, anticipated plans, operational results and objectives. Forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied on our call today. We have identified a number of different factors within the forward-looking statements at the end of our earnings release and you are encouraged to review those factors. SB Financial Group undertakes no obligation to update any forward-looking statement, except as required by law, after the date of this call. In addition to the financial results presented in accordance with GAAP, this call will also contain certain non-GAAP financial measures. I will now turn the call over to Mr. Klein.

Thank you, Melissa, and good morning everyone. Welcome to our fourth quarter and final webcast for 2015. As with prior quarters, more details on our quarterly and full year performance are available in our earnings release we filed yesterday and of course those details on our website. Once I make some general comments about our quarterly and annual performance, I'll ask Tony Cosentino, our CFO to provide some more details on our underlying performance metrics, we’ll take some questions and finally, I will close with some comments on our areas of focus for 2016. Highlight for the quarter include, GAAP net income for the quarter was 1.87 million, a 23% improvement over the prior year with a return on average assets of 1.02% for the quarter and 1.06% for the year. Net income available to common shares for the quarter was 1.62 million or $0.29 per share representing approximately a 6.6% improvement over the prior year quarter. For the year, our earnings available to common shares of 6.7 million or $1.19 earnings per share represent an 11% improvement or $0.12 more than the prior year of a $1.7. This was the strongest performance for SBFG in 10 years. Our loan balances expanded for the quarter nearly 17 million or over 3% from the prior year and over 41 million for the year, an improvement of 8%. Topline revenue for the quarter declined approximately 3% from the linked quarter but expanded by 11.8% over the prior year quarter. For the year, our total revenue expanded by over 5 million or 15.7%. Organic balance sheet growth and stable net interest margins delivered the improvement. Expenses for the quarter increased over 3% from the linked quarter and increased over 7% compared to the year ago quarter. Expenses for the year were up by…

Thanks Mark. As Mark had said, a very strong earnings quarter with GAAP net income up 23% from the prior year at $1.9 million or $0.29 per diluted share. Net income available to common shares was up 7% from the prior year. Let me start with a few high-level comments on some of the factors affecting our results. Total revenue on a fully taxable equivalent basis was up a 11.7% from the prior year, down slightly 3.3% from the linked quarter. Loan growth on an annual basis was up $41.3 million or 8%. And third, operating expense was up 7.5% from the prior year and 3.2% from the linked quarter. Operating leverage from the prior year quarter was a positive 1.6x and 4.2x for the entire year. Now, let’s look at our results in the context of Mark’s comments on our strategic initiatives and overall industry conditions begin with the income statement, starting with margin. Net interest income on a fully taxable equivalent basis was up 8.4% from the prior year, down slightly from the linked quarter by 1.6%. End of period loan balances up $41.3 million, an increase of 8% and from the linked quarter up $16.8 million or 3.1%. The yield on our earning assets declined just 1 basis point from a prior year as loan pricing remains stable and compared to the linked quarter, yields on earning assets were down 10 basis points. On the funding side, we continued to reduce our cost of interest bearing liabilities which in at 49 basis points for the quarter, down 4 basis points from the 53 basis points in the fourth quarter of 14. Net interest margin at 3.76% was up 3 basis points from the prior year, but down 11 basis points from the linked quarter. As return to…

Thank you, Tony. In summary, overall, it was a good quarter that contributed to a great year for our company. We were able to balance our growth initiatives with proper controls to improve our performance. We grew the balance sheet, expanded the loan portfolio, bolstered topline revenue and expanded non-interest income that led to our ROA improvement and now the 85th percentile among our 65 bank peer group. Each of these improvements and overall performance is consistent with and reflective of our commitment and collective level of execution. We intend to push our performance higher in 2016 and on into top decile of our peer performers. This movement will require us to key in on our five strategic initiatives and at the same time embrace a smarter and more consistent execution strategy by our entire staff. Our attitude of persistent dissatisfaction will drive our behaviors and elevate our performance. We are positioned quite well to meet the needs of our each of our key stakeholders. We thank you for your support and guidance this past year and certainly look to continue to build value for all of our owners. At this time I'll turn the call back to Melissa for any potential questions from our investment community. Melissa.

Thank you, Mark. Operator at this time we’re now ready for our first question.

[Operator Instructions] Our first question will come from Joe Warnecke from Fourthstone. Please go ahead with your question.

So a couple questions. With respect to your growth outlook for 2016, you did 8% loan growth in 2015. Is this something we can expect for 2016? And do you think that all your growth will come from your existing markets or should we expect some additional branch openings over the course of the year?

Well, Joe great questions and thank you for joining us. Yes, the last couple of years we’ve enjoyed little over 8% in our loan growth and as we’ve discussed many times before, we are built for loan growth. We have six distinct region with high level leaders and we are expecting similar results in the coming year. Tony can give us a little more details, Jon Gathman here with me here this morning but as we mentioned, we're entering the Bowling Green market, which certainly present some opportunities. We continue to cross-sell across all fronts, all 200 employees, 87% of our employees referred business to another business line. So, we are built for growth we expect it, but we certainly do not Joe anticipate that growth to come on the heels of reduced credit criteria or metrics but generally from our existing regions as well as potentially filling in holes in our existing footprint, which would be here in tri-state area.

Okay, great. And then I guess turning to the margin. What can we expect to see there given the Fed raised rates last month? Are you going to see that compress at all or what do you guys see there?

Hi Joe, this is Tony. We've obviously seen some compression here in 2015. Our funding costs are probably at the low end of our expectation and given our loan pipeline that we’re looking at today, prices on the loan side have remained relatively stable, we're seeing some pressure competitive wise in the number of our higher growth markets. Our expectation is that margin will be in the same range, we’ve experienced here in the third and fourth quarter through much of 2016. We expect - we’re banking on the same level of rate increases from the Fed that’s kind of accepted in the marketplace and we build those into our forward projections which will help us from a margin perspective. So we think general rate moves in the market will offset competitive pressures in our funding cost increases in 2016.

Okay. Okay, thanks a lot. And then I guess can you just talk generally about your credit environment, I know you had a few issues last quarter and then the third quarter but are you seeing anything concerning or just kind of talk generally about that?

Joe, this is Jon Gathman. Really no, we’re not concerned at all here heading into 2016 as Tony alluded and Mark in the presentation we have three large credits. We have known about all three of those probably for two to three years in some manner that they've weakened for variety of reasons. We have them all appropriately reserved. Really our overall level of criticized loans in the fourth quarter reached - at least 2007; I think lowest level since 2007. So while we have those three hiccups one of which were non-performing here in 2015 again that we think is appropriately reserved. Our overall level of criticized loans and delinquency has really decreased absent those three things.

Okay, well, thanks a lot. That is all I have got. Congrats on a good quarter and a good year and talk to you again later.

[Operator Instructions]

While we are waiting for additional questions, I would like to remind you that today's call will be accessible on our website at www.yoursbfinancial.com under the Investor Relations tab.

[Operator Instructions] And as I'm not showing any further questions, this will conclude our question and answer session. I'd like to turn the conference back over to Mr. Klein for any closing remarks.

Thank you all for joining us this quarter. We did have a great year and we certainly look forward to delivering to you our results for the first quarter of 2016. Have a great day.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.