Welcome to the SB Financial Group Fourth Quarter 2016 Conference Call and Webcast. I would like to inform you this conference call is being recorded and that all participants are in a 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 will now turn the conference over to Melissa Martin, with SB Financial. Please go ahead, Melissa.

Good morning, everyone. I would like to remind you this call is being broadcast live over the Internet and will also be archived and available on our website at www.yourSBFinancial.com under Investor Relations. 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. Great to have you all with us. Welcome to our fourth quarter and final earnings webcast for 2016. As with prior quarters, more details on our quarterly and full-year performance are available on our earnings release we filed yesterday. After some general comments about our quarter and annual performance, Tony Cosentino, our CFO, will certainly provide some underlying detail on our performance metrics and then I'll close with some comments and perspective on 2017. Highlights for the quarter, GAAP net income was $2.3 million, a 24% improvement over the prior year, with a return on average assets of 1.14% for the quarter and 1.1% for the entire year. Net income available to common shares for the quarter was $2.07 million or $0.37 per share, representing a 27.6% improvement over the prior-year quarter. For the year, our earnings available to common shares of $7.8 million or $1.38 per share, represented a 16% improvement or $0.19 more than the prior year of $1.19. This year was the strongest performance for SBFG in 13 years. Our loan balances expanded by $25 million for the quarter or 4% from the prior year and over $86 million for the year, an improvement of over 15%. Top-line revenue for the quarter expanded approximately 1% from the linked quarter and by 21.5% over the prior-year quarter. For the year, our total revenue grew by over $4.7 million or 12%. Organic balance sheet growth and a stable net interest margin and robust noninterest income delivered the improvement. Expenses for the year were up by 11.8%. Our pace of positive operating leverage slowed this year as strategic business line and geographical expansions accelerated. Wealth management revenue increased to $657,000 or 1.86% from the year-ago quarter. Total revenue increased slightly for the year.…

Thanks, Mark. Good morning, everyone. As Mark just mentioned, for the quarter we had net income of $2.3 million or $0.37 per diluted earnings per share. Net EPS of $0.37 was up $0.08 or 28%, from the prior year but down just slightly $0.03 or 8%, from the link quarter. For 2016, our diluted EPS of $1.38 is up 16% for the prior year. Let's look at highlights in the current quarter. Total operating revenue was up 21.5% from the prior year and up 0.8% from the linked quarter. Loan growth was up $87 million for the prior year or 15.6% which included growth in the fourth quarter of $25.1 million. We delivered loan sale gains of $2.1 million from mortgage, small business and agriculture which is up 42% from the prior year. Finally, we moved our remaining large commercial real estate nonperforming loan to OREO which reduced nonperforming loans by $1.1 million. If we break down the income statement a bit further, let's begin with margin. Net interest income was up from the prior year by 11.2% and flat to the linked quarter. End-of-period loan balances, as we said, were up $86.8 million, an increase of 15.6% and were up $25.1 million or 16.2% annualized, from the linked quarter. Our quarterly loan growth was very consistent and very strong in 2016. We added $19.5 million, $27.6 million, $14.6 million and $25.1 million in each of the quarters, respectively. Our average loan yield of 4.47% increased by three basis points from the prior year and overall earning asset yield was flat to the prior year. On the funding side, we continue to experience an increase in the cost of our interest bearing liabilities, coming in at 58 basis points for the quarter, up nine basis points from the prior year.…

Thank you, Tony. Nice job. Overall, it was a great quarter that contributed to another excellent year for our Company. As Tony mentioned, we delivered double-digit growth in earnings, loan portfolio expansion, record levels of residential real estate volume, franchise-high SBA loan sale gains and market-leading asset quality. Each lead to the achievement of a key component of our vision of higher performance. In other words, an ROA at or above the 90th percentile of peer banks. In fact, our successes this year catapulted our Company to the 92nd percentile as measured by the ROAA of the third quarter as of 2016 or to a ranking of 6 out of 65 publicly-traded bank peer group. With this high performance recognized by investors, through a 46% total shareholder return to our common stockholders and an improvement in total market capitalization to over $100 million, we're well positioned to leverage our stronger currency to achieve our strategic goal of over $1 billion in total assets in 2017. Coupled with our surge in financial performances is an economy that appears to be gaining strength. With prospects of less regulatory constraints on community banking and a more favorable business client, we're positioned to become the benefactor. Unemployment is at a post-recession low at approximately 4.7%. GDP is nearing the longer term Federal Reserve bank goal of at least 2% and yet core inflation remains low at the 2% threshold. Each of these points to an accommodating monetary policy that will, in theory, lead to even greater economic activity, albeit with a bit flatter yield curve and one that has the potential to provide us greater margin revenue and an improved bottom line. While we have clearly begun to pierce the levels of performance metrics that are characteristic of market leaders, we continue to embrace an attitude of persistent dissatisfaction. We discussed in prior quarters, pleased with our performance yet certainly not content. Our organic balance sheet growth, financial performance and resulting momentum going into 2017 position us quite well to meet and balance the needs of each of our key stakeholders. With the detailed corporate strategic plan in place, supported by six individual business line strategic plans, all driven from the top, prospects to leverage the benefits of an expanding economy improve. We thank you for your confidence and support the past year and of course we look forward to the opportunity to continue to deliver to you, our stockholders value. Now I'll turn the call back to Melissa for questions. Melissa?

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

[Operator Instructions].

While we're waiting for questions to assemble, I would like to remind you that today's call will be accessible on our website at www.yourSBFinancial.com under Investor Relations.

[Operator Instructions].

Seeing that there are no additional questions at this time, I'll now turn the call back over to Mark Klein.

Thank you, Melissa. Thank you Tony, thank you, John, for a great year. Thank you all for joining us for our final webcast of 2016 and of course we certainly look forward to chatting with you all again in April for our first quarter of 2017 earnings. Thank you. Goodbye. Have a great 2017.

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