SB Financial Group Inc. increased mortgage origination volume in 2018, though the business environment was challenging for lenders. The bank originated mortgage origination volume of $342.1 million, an increase of $26.3 million, or 8.3 percent, compared with 2017.

[caption id="attachment_9395" align="alignleft" width="223"] Mark A. Klein[/caption]

"Despite rising rates and inventory pressure, we increased our mortgage production this quarter compared to the prior year,” said Mark A. Klein, chairman, president and CEO of SB Financial. “Our full year production level of $342 million is the second highest in our history and included our first loan closing from our new Indianapolis office."

Mortgage origination volume of $342.1 million, an increase of $26.3 million, or 8.3 percent, in the fourth quarter. SB Financial reported net income of $11.6 million, an increase of $2.3 million, or 24.3 percent. Also, earnings per share were $1.51, an increase of $0.04 per share, or 2.5 percent, reflecting a $30 million capital infusion in the first quarter of last year.

Mortgage loan originations for the fourth quarter of 2018 were $78.8 million, up $6.7 million, or 9.3 percent, compared to the same time period a year earlier. Sales of originated loans were $60.3 million, up $6.5 million, or 12.1 percent, compared with the year-ago quarter.

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net-loan servicing fees, was $2 million for the fourth quarter of 2018, compared to $2.1 million for the year-ago quarter. The mortgage servicing valuation adjustment for the fourth quarter of 2018 was a negative $0.07 million, compared to a positive adjustment of $0.12 million for the fourth quarter of 2017. The mortgage servicing portfolio, as of Dec. 31, 2018, was $1.08 billion, up $0.09 billion, or 9 percent, from $0.99 billion in the same period a year earlier.