Financial Data and Key Metrics Changes - For Q2 2025, net income was $3,900,000 with diluted earnings per share of $0.60, an increase of nearly 28% compared to the prior year quarter [5] - Tangible book value per share increased to $16.44, up from $15.26 last year, representing a 7.7% increase [5] - Net interest income totaled $12,100,000, an increase of over 25% from $9,700,000 in the second quarter of last year [5] - Operating expenses decreased approximately 4.5% from the linked quarter [7] - Noninterest income rose 15.1% from the prior year quarter to $5,000,000 [11] Business Line Data and Key Metrics Changes - Mortgage originations for the quarter were just short of $98,000,000, reflecting a strong rebound [9] - Loan growth for the quarter was approximately $90,000,000, up 8.9% from the prior year [5] - The wealth management division faced challenges but remains a valued part of the product suite [12] - Commercial real estate loans grew by approximately $91,000,000, while consumer loans increased by over $12,000,000 [18] Market Data and Key Metrics Changes - Deposits grew by over 12% year-over-year, including Marblehead deposits of £51,000,000 [6] - Excluding Marblehead deposits, deposit growth was approximately 7.5% [14] - The loan book grew $89,000,000 or approximately 9% from the prior year [15] Company Strategy and Development Direction - The company focuses on five key initiatives: revenue diversity, organic growth, deepening client relationships, operational excellence, and top-tier asset quality [8] - The company aims to capitalize on market disruptions to drive organic growth and maintain operational efficiency [17] - The integration of the Marblehead acquisition has been successful, retaining legacy relationships and community connections [13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2025, anticipating positive resolutions to several nonperforming credits [30] - The company expects continued solid loan growth and stable to slightly lower funding costs, which should support margin expansion [30] - Management highlighted the potential for increased residential mortgage volume with anticipated rate reductions [30] Other Important Information - The company was added to the Russell 2000 Index during the recent rebalancing, reflecting strong financial performance [8] - The allowance for credit losses remained robust at 1.43% of total loans, providing 265% coverage of nonperforming assets [20] Q&A Session Summary Question: Mortgage outlook and potential for $300,000,000 in volume - Management remains optimistic about achieving $300,000,000 in mortgage volume, especially with strong performance in key markets like Indianapolis [36][38] Question: Gain on sale margin consistency - The gain on sale margin is expected to remain stable, projected in the range of $2.15 to $2.25 for the rest of 2025 [40] Question: Loan growth outlook and pipeline status - Management is optimistic about loan growth, with a strong pipeline and some modest payoffs noted [42][47] Question: Margin stabilization and future expectations - The margin is expected to improve slightly, potentially reaching around 3.70% [56][57] Question: Capital management and M&A considerations - The company is exploring M&A opportunities while also focusing on organic growth, with a potential slowdown in share buybacks [62][64] Question: Expense management and future run rates - Management indicated that expenses are expected to rise with increased mortgage production, but overall efficiency is improving [66][68]

DEFIANCE, Ohio, July 24, 2025 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights compared to the second quarter of the prior year include: GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 ...

Company Overview - SB Financial Group, Inc. (SBFG) is located in Defiance and operates within the Finance sector. The stock has experienced a price decline of 9.47% since the beginning of the year [3]. Dividend Information - The company currently pays a dividend of $0.15 per share, resulting in a dividend yield of 3.17%, which is higher than the Banks - Northeast industry's yield of 2.72% and the S&P 500's yield of 1.55% [3]. - SBFG's annualized dividend of $0.60 has increased by 7.1% compared to the previous year. Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 9.81% [4]. - The current payout ratio for SBFG is 32%, indicating that the company distributes 32% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year 2025, SBFG anticipates solid earnings growth, with the Zacks Consensus Estimate projecting earnings of $2.03 per share, reflecting a year-over-year growth rate of 18.71% [5]. Investment Considerations - SBFG is considered a compelling investment opportunity due to its strong dividend profile and the current Zacks Rank of 3 (Hold). The company is positioned well for income investors, especially in a market where high-yielding stocks may face challenges during rising interest rates [6].

Core Points - SB Financial Group, Inc. has been included in the Russell 3000 and Russell 2000 indices, marking a significant recognition of its financial performance and business resilience [1][3] - The Russell 3000 Index includes the 4,000 largest US stocks ranked by total market capitalization, with membership lasting for one year [2] - The inclusion in the Russell indices enhances SB Financial's visibility within the investment community and reflects its commitment to delivering consistent financial results and long-term value [3] Company Overview - SB Financial Group is headquartered in Defiance, Ohio, and operates as a diversified financial services holding company for The State Bank and Trust Company and SBFG Title, LLC [4] - The State Bank offers a comprehensive range of financial services, including wealth management, mortgage banking, and commercial lending, through 26 offices and 26 ATMs across Ohio and Indiana [4] - SB Financial Group's common stock is listed on the NASDAQ Capital Market under the ticker symbol "SBFG" [4] Industry Context - FTSE Russell, a global index leader, provides benchmarking and analytics solutions for investors, with approximately $18.1 trillion benchmarked to its indexes [5] - FTSE Russell's indexes cover 98% of the investable market globally, making them a preferred choice for asset owners and investment banks [5]

Core Points - SB Financial Group, Inc. is set to release its second quarter 2025 financial results on July 24, 2025, after market close [1] - A conference call and webcast will follow on July 25, 2025, at 11:00 a.m. EDT [1][2] Company Overview - SB Financial Group is headquartered in Defiance, Ohio, and operates as a diversified financial services holding company for State Bank & Trust Company and SBFG Title, LLC [3] - The company offers a full range of financial services including wealth management, private client services, mortgage banking, and commercial and agricultural lending through 26 offices across Ohio and Indiana [3] - SB Financial's common stock is listed on the NASDAQ Capital Market under the ticker symbol "SBFG" [3]

Core Viewpoint - The article emphasizes the importance of value investing and highlights SB Financial Group (SBFG) as a strong value stock opportunity based on various financial metrics [2][4][7]. Group 1: Value Investing Strategy - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to identify undervalued stocks [2]. - The Zacks Rank system and Style Scores are tools that help investors find high-quality value stocks [3]. Group 2: SB Financial Group Metrics - SBFG has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4]. - The Forward P/E ratio for SBFG is 9.44, slightly below the industry average of 9.51, with historical highs and lows of 13.56 and 8.65 respectively [4]. - The P/S ratio for SBFG is 1.53, compared to the industry average of 1.8, suggesting it may be undervalued [5]. - SBFG's P/CF ratio is 8.30, significantly lower than the industry average of 15.44, indicating a favorable cash flow outlook [6]. - Overall, these metrics suggest that SBFG is likely undervalued and presents a strong investment opportunity [7].

Financial Performance - Net income for Q1 2025 was $2.2 million, a decrease of 8.9% from $2.4 million in Q1 2024, with diluted earnings per share at $0.33 compared to $0.35[159] - Operating revenue for Q1 2025 was $15.4 million, an increase of $2.3 million or 17.2% from $13.1 million in Q1 2024[161] - Net interest income for Q1 2025 was $11.3 million, up from $9.2 million in Q1 2024, with a net interest margin of 3.40% compared to 2.99%[162] - Total noninterest income for Q1 2025 was $4.1 million, slightly up from $4.0 million in Q1 2024, with SBFG Title contributing $0.4 million[163] - Total noninterest expense for Q1 2025 was $12.4 million, an increase of $2.1 million from $10.3 million in Q1 2024, including over $0.7 million in merger-related expenses[165] - Income taxes for Q1 2025 were $0.43 million, representing an effective tax rate of 16.7%, compared to $0.48 million and 16.9% in Q1 2024[166] Loan and Asset Management - Total loans reached $1.09 billion, an increase of $41.5 million or 4.0% from year-end 2024[167] - Total delinquent loans at the end of Q1 2025 were $5.9 million, representing 0.54% of total loans[160] - The allowance for credit losses was $15.4 million, reflecting a $0.3 million increase from December 2024[169] - Non-performing asset ratio remained stable at 41 basis points with coverage on non-performing loans at 254%[169] - The commercial real estate and mortgage portfolios totaled $890.3 million, which can be used to collateralize borrowings[174] Deposits and Assets - Total assets increased to $1.5 billion, up $121.5 million or 8.8% since December 31, 2024[167] - Total deposits rose to $1.27 billion, up $118.6 million or 10.3% since the end of 2024[167] - Liquid assets totaled $310.7 million, an increase from $235.9 million at December 31, 2024[172] Cash Flow - Net cash provided by operating activities was $6.7 million for the three months ended March 31, 2025, compared to $0.3 million for the same period in 2024[176] - Net cash provided by financing activities was $63.3 million for the three months ended March 31, 2025, compared to a net cash used of $8.4 million in the prior year[178] Credit Losses - Provision for credit losses for Q1 2025 was $387,000, compared to zero in Q1 2024, with net charge-offs of $84,000 versus $57,000 in the prior year[160] - State Bank originated $39.8 million in mortgage loans during Q1 2025, with $39.3 million sold, resulting in $0.9 million of gains[164] Borrowing Capacity - The Company had approximately $145.4 million of additional borrowing capacity as of March 31, 2025[180]

Financial Performance - Net income for Q1 2025 was $2.7 million, with diluted earnings per share of $0.42, a 27% increase compared to the prior year[7]. - Noninterest income increased by 3.9% year-over-year to $4.1 million, driven by gains on mortgage loans and commercial loan swap revenue[12]. - Operating expenses totaled $12.4 million, including $726,000 in merger-related expenses, resulting in a 3.5% increase from the linked quarter[25]. - The company announced a dividend of $0.15 per share, yielding approximately 3.16% and representing 45% of earnings, with expectations to normalize the payout ratio to around 30%[33]. - Tangible book value per share increased by 5.8% year-over-year, but decreased by $0.21 from the previous quarter due to merger impacts[30]. - The company plans to continue increasing its dividend policy over the coming years[60]. - Earnings improvement and AOCI are expected to drive capital levels stable to higher[60]. Loan and Deposit Growth - Loan growth for the quarter was $97 million, representing a 9.8% increase from the prior year, marking the fourth consecutive quarter of sequential loan growth[8]. - Total loans ended the quarter at $1.09 billion, with a net interest margin improvement to 3.4%, up 5 basis points from the linked quarter[26]. - The Marblehead acquisition added $56 million in low-cost deposits and a $19 million loan book, enhancing the company's market position in Ottawa County, Ohio[13]. - Deposits grew over 10%, including $56 million from the Marblehead acquisition, with core deposit growth of just under 5% for an annualized growth rate of 15%[15]. - Loan growth is projected at 8% to 10% for the year, including Marblehead's $20 million contribution[42]. - The company anticipates a core deposit growth of 4% to 5% despite potential seasonal declines in the second quarter[48]. Asset Quality - Charge-offs fell to 3 basis points, with nonperforming assets totaling $6.1 million, representing 41 basis points of total assets[20]. - Total delinquencies decreased to 54 basis points, with a total provision expense of $387,000 for the quarter[31]. - The reserve level is currently at $141 million, with expectations to provision quarterly to keep pace with anticipated loan growth[55]. Strategic Initiatives - The digital banking strategy includes appointing a Digital Banking Officer to enhance cybersecurity and client care initiatives[17]. - The company is optimistic about capital management, focusing on rebuilding post-merger and considering future M&A opportunities[59]. - CET1 capital level remains above 12%, indicating stability and potential for buybacks[60]. Future Outlook - The company anticipates a stronger summer volume in mortgage originations, with a current pipeline of approximately $50 million[9]. - The mortgage pipeline is currently in the low 50s, with expectations to achieve around $380 million in mortgage volume for 2025[45]. - The gain on sale margins have remained stable in the range of $220 million to $225 million[46]. - The next earnings report is scheduled for July, covering the second quarter of 2025[63].

Financial Data and Key Metrics Changes - Net income for the first quarter was $2,700,000, with diluted earnings per share (EPS) of $0.42, representing a 27% increase compared to the prior year quarter [5] - Tangible book value per share increased to $15.79, up from $14.93 last year, marking a 5.8% increase [5] - Net interest income totaled $11,300,000, a 23% increase from $9,200,000 in the first quarter of the previous year [5][19] - Operating expenses rose approximately 3.5% from the linked quarter, totaling $12,400,000, which includes $726,000 in merger-related expenses [7][21] Business Line Data and Key Metrics Changes - Loan growth for the quarter was $97,000,000, up 9.8% from the prior year, marking the fourth consecutive quarter of sequential loan growth [6][13] - Mortgage originations for the quarter were $40,000,000, down from the prior year and linked quarters, but the current pipeline is approximately $50,000,000 [6][8] - Noninterest income increased by 3.9% from the prior year quarter to $4,100,000, driven by gains on mortgage loans and commercial loan swap revenue [10] Market Data and Key Metrics Changes - Deposits grew over 10%, including $56,000,000 from the Marblehead acquisition, while excluding Marblehead, growth was 5.4% [6][12] - The deposit base ended the quarter at $1,270,000,000, the highest level in the company's history [24] - Demand deposits expanded by $8,000,000 or 3% for an annualized growth rate of 12% [25] Company Strategy and Development Direction - The company remains focused on five key initiatives: growing and diversifying revenue, expanding footprint, operational excellence, and maintaining asset quality [7] - The acquisition of Marblehead Bancorp is expected to enhance market presence and provide tailored financial solutions to clients [11] - The company is committed to digital innovation and enhancing client care initiatives to remain competitive against larger regional banks [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in loan growth despite economic uncertainties, with a budgeted growth of 8% to 10% for the year [40] - The company anticipates continued improvement in net interest margin due to lower funding costs and loan repricing [20][56] - Management remains optimistic about the economic environment and client situations, despite potential concerns regarding tariffs [39][57] Other Important Information - The company repurchased 26,500 shares at an average price of just under $21, representing approximately 130% of tangible book value [26] - The allowance for credit losses remained robust at 1.41% of total loans, providing 254% coverage of nonperforming loans [18] Q&A Session Summary Question: Outlook on loan growth and impact of tariffs - Management is confident in the loan pipeline and does not foresee significant pullback from clients due to tariffs, although economic uncertainty exists [36][39] Question: Expectations for mortgage volume and pipeline - The current mortgage pipeline is healthy, and management is optimistic about achieving budgeted numbers for the year [42][43] Question: Deposit trends and liquidity outlook - Management expects some seasonal fluctuations in deposits but anticipates core deposit growth to remain strong [49] Question: Credit quality and reserve levels - Management is bullish on credit quality and expects to maintain reserve levels while provisioning for anticipated loan growth [58][61] Question: Capital management priorities post-acquisition - The company plans to stabilize capital levels and may resume share buybacks when opportunities arise [66]

Financial Data and Key Metrics Changes - Net income for the first quarter was $2,700,000, with diluted earnings per share (EPS) of $0.42, representing a 27% increase compared to the prior year quarter [5] - Tangible book value per share increased to $15.79, up from $14.93 last year, marking a 5.8% increase [5] - Net interest income totaled $11,300,000, a 23% increase from $9,200,000 in the first quarter of 2024 [5] - Operating expenses increased approximately 3.5% from the linked quarter, totaling $12,400,000, which includes $726,000 in merger-related expenses [7][21] Business Line Data and Key Metrics Changes - Loan growth for the quarter was $97,000,000, up 9.8% from the prior year, marking the fourth consecutive quarter of sequential loan growth [6][13] - Mortgage originations for the quarter were $40,000,000, down from the prior year and linked quarters, but the current pipeline is approximately $50,000,000 [6][8] - Noninterest income increased by 3.9% from the prior year quarter to $4,100,000, driven by gains on mortgage loans and commercial loan swap revenue [10] Market Data and Key Metrics Changes - Deposits grew over 10%, including $56,000,000 from the Marblehead acquisition, while excluding Marblehead, growth was 5.4% [6][12] - The deposit base ended the quarter at $1,270,000,000, the highest level in the company's history [23] - Demand deposits expanded by $8,000,000 or 3% for an annualized growth of 12% [24] Company Strategy and Development Direction - The company remains focused on five key initiatives: growing and diversifying revenue, expanding footprint, operational excellence, and maintaining asset quality [7] - The acquisition of Marblehead Bancorp is expected to enhance market presence and provide tailored financial solutions to clients [11] - The company is committed to digital innovation and enhancing client care initiatives to remain competitive against larger regional banks [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in loan growth despite economic uncertainties, with a budgeted growth of 8% to 10% for the year [39] - The company anticipates continued improvement in net interest margin due to lower funding costs and loan repricing [20][55] - Management remains optimistic about the economic environment and the company's ability to grow in new markets [38][56] Other Important Information - The company repurchased 26,500 shares at an average price of just under $21, representing approximately 130% of tangible book value [25] - The allowance for credit losses remained robust at 1.41% of total loans, providing 254% coverage of nonperforming loans [18] Q&A Session Summary Question: Concerns about loan growth and tariffs - Management expressed confidence in the loan pipeline, indicating that most clients are proceeding with funding despite economic uncertainties related to tariffs [35][36] Question: Outlook for loan growth this year - The company budgeted for loan growth of 8% to 10%, inclusive of the Marblehead acquisition [39] Question: Mortgage pipeline and full-year expectations - The current mortgage pipeline is healthy, and management is optimistic about achieving budgeted mortgage volume for the year [42] Question: Deposit trends and seasonality - Management anticipates some seasonal fluctuations in deposits but expects core deposits to grow by 4% to 5% [48] Question: Credit quality and reserve levels - Management indicated that credit quality remains strong, with no immediate concerns, and reserves are expected to be maintained [56][60] Question: Capital priorities post-acquisition - The company plans to stabilize capital levels post-acquisition while considering future buybacks and dividend policies [64][66]