Good day and welcome to the SB Financial's Third Quarter 2015 Financial Results Conference Call and Webcast. At this time, I would like to inform you that this conference is being recorded and that all participants are in listen-only mode. We will begin with remarks by management and then open the conference up to the investment community for questions and answers. I'd now like to turn the conference over to Melissa Short. 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 also be archived and available on our Web site at www.yoursbfinancial.com under the Investor Relations tab. Joining me today are Mark Klein, Chairman, President and Chief Executive Officer; 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 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 afternoon everyone, welcome to our third quarter webcast. We issued our earnings release yesterday and those details are available on our Web site as well. Once I make some general comments about our quarterly performance, I will have Tony Cosentino, our CFO provide more details on our underlying performance metrics. And finally, I will close with some perspective on our markets. Highlight for the quarter include, our operating results were quite strong and revealed our best performance since 2003. GAAP net income for the quarter was $2.26 million or $0.41 per share representing a significant increase more than 49.6% or approximately $750,000 over the prior year quarter and a strong 13.7% or approximately $270,000 improvement over the linked quarter, considering our recent preferred convertible issue fully converted, our net income available to common shares is up more than 33% or $500,000 with earnings per share of $0.35. This quarterly performance represents a fully diluted earnings per share improvement of more than over 12.9% from the linked quarter of $0.31. Top line revenue grew 9.46% over the prior year quarter but was down slightly from the linked quarter and expenses declined 3.8% and 2.82% respectively. Likewise, our efficiency ratio improved to 65.6% or $0.116 improvement over the prior year quarter but down slightly from the linked quarter. Wealth management revenue increased to $655 million or 2.7% increase over the prior year quarter but a decline of more than 4% from the linked quarter. Mortgage origination volume for the quarter was $87 million or an improvement of more than 28% over the prior year quarter but a decline of 7% over the linked quarter. With more than 90% of our volume new to State Bank for the quarter, our servicing portfolio grew to an all time high…

Thank you, Mark. As Mark just stated, while we remain pleased with our overall asset quality, the third quarter saw a significant relative increase in our non-performing assets to almost entirely to the deterioration of one large commercial credit. This credit represented 49 basis points of our total assets compared to total non-performing as a percentage of assets at 1.18% or 41% of our total non-performing assets. This relationship has been adversely classified for almost two years and we've been monitoring the credit closely. In addition, we have had iterative negotiations with the borrower during that entire time. Nonetheless, this commercial relationship, commercial real estate loan deteriorated to the point that non-performing status was warranted. But we remained vigilant in our pursuit of full collection. We believe we will have the credit -- we believe we have the credit addressed appropriately and conservatively in our allowance and we will have it resolved in short order. I will now turn the call back over to Mark.

Thank you, Jon. At this time, I'd like to ask Tony, our CFO to give us some more details on our performance this quarter. Tony?

Thanks Mark. As Mark said, a very strong earnings quarter with GAAP net income for the quarter up 50% from the prior year at $2.3 million or $0.35 per diluted share. Net income available to common was up 35% from the prior year as we had the full effect of the trough payoff with our preferred equity raise. Now, let's start with a few high level comments and some of the factors that affected our results. First, total revenue on a fully taxable equivalent basis was up 9.3% from the prior year, but down just slightly 1.8% from the linked quarter. Second, loan growth up to $35 million over the prior year, or 6.9%. And finally, the impact of the early payoff of our trust preferred securities in the third quarter of 2014 resulted in an improvement in net interest margin of 17 basis points for the quarter. Now, as we look at our results in the context of Mark's comments on our strategic initiatives and overall industry conditions, starting with the income statement. Specifically margin on the revenue front, net interest income on a fully taxable equivalent basis was up 13.2% from the prior year and up from the linked quarter by 5.3%. End of period loan balances up $35 million from the prior year and we're up $18.5 million or 3.5% to the linked quarter. Thus far in 2015, we've added $24.6 million in loan outstandings to our balance sheet. The yield on earning assets only declined 2 basis points from the prior year and compared to the linked quarter yields earning assets were up 9 basis points as growth in pricing were higher this quarter. On the funding side, we continue to reduce our cost of interest bearing liabilities which came in at 49 basis points. This…

Thank you, Tony. In summary, overall, it was a great quarter for our company and a clearly the best performance in over 11 years. Our unique combination of organic balance sheet growth as Tony discussed coupled with our ability to generate a fee income from key business lines all bound by our unique geographic market diversity is providing that distinctive competitive advantage. We intend to continue to leverage that positioning. Our commitments on resulting performance are delivering shareholder value. Over the last 12 quarters our earnings per share have expanded by nearly 20%. Our stock price as of Friday, October 23 rested at $10.25 or just 8.6x trailing 12 months earnings per share well below the Ohio market median of 13x. We realized the critical component necessary to achieve market recognition of this performance rests with our ability to achieve both size and performance. It is just critical link that continues to drive our search for strategic fits, for franchise. We consider a number of metrics that lead us to envision a strong finish to a meaningful year for our company and the impetus to a bright future here at SB Financial. This include, a positive trends revealed and revenue and expense levels more balance sheet growth efficiency and performance resulting in positive operating leverage as we align these performance metrics with our organizational capacity. Expanding national, regional and local economies and eminent increases in short-term rates as Tony alluded to, the asset sensitivity that will send a positive message to the investment community as well as provide margin expansion for our organization. Our performance and our strategy remain perfectly correlated and reflect the collective efforts and effectiveness of our execution. As a result, we are pleased with our progress and our level of commitment to deliver consistently high performance. We look forward to a strong finish to 2015. And now I'll turn the call back to Melissa for questions and answers. Melissa?

Thank you, Mark. Operator, we're now ready for our first question.

[Operator Instructions]

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

[Operator Instructions] The first question comes from Chas Craig of Meliora. Please go ahead.

Hi, guys.

Hi, Chas. How are you doing?

Good. Thanks. How are you?

Doing well, thanks.

Good, so my question is regarding your peer group. So you often make reference to being in the top quartile of your peer group and then you also made a reference towards the Ohio market specifically. I just want to verify that those are two separate groups of comparable banks, is that correct?

Yes, Chas. What I was referencing is the 64 banks between 500 million and a billion that are publicly traded in the United States, that's the peer group we've been benchmarking our self to and again strategically we've aspired to be in that 75th percentile that we identified some four our five years ago and this second quarter we've landed up to 77 percentile with our performance coming into the third quarter.

Very good. Thank you.

Yep.

This concludes our question-and-answer session. I would now like to turn the conference back over to management for any closing remarks.

Thank you once again for joining us this afternoon. We look forward to speaking with you in January for a full review of our entire year performance for 2015. Thank you and good bye.

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