Core Insights - SB Financial Group reported strong financial performance for the fourth quarter and full year of 2025, with significant increases in net interest income, earnings per share, and tangible book value per share, despite challenges in the mortgage sector [4][7][2] Financial Performance - Net interest income for Q4 was $12.7 million, a nearly 17% increase from $10.9 million in Q4 2024, and a 3.1% increase from the prior quarter [1][6] - Full-year net interest income rose to $48.4 million, up $8.5 million or 21% year-over-year, attributed to a larger balance sheet and wider margins [1] - GAAP EPS for the full year was $2.19, a 27% increase from $1.72 in 2024, marking the second-highest earnings performance in 20 years [2] - Q4 net income was $3.9 million, with diluted EPS of $0.63, reflecting a 15% increase from the prior-year quarter [3][7] Balance Sheet and Growth - Loans grew by $70 million in Q4, marking seven consecutive quarters of growth, with a loan-to-deposit ratio of 90.3% [5][10] - Total deposits increased by $45 million in Q4 (14% annualized) and nearly $155 million year-over-year (13%) [11] - Contingent liquidity was strong at over $550 million, with the company holding about $50 million in excess liquidity [13] Asset Quality - Non-performing loans improved to 0.39% of total loans, with the allowance for credit losses providing 352% coverage of non-performing assets [18] - Total delinquencies increased slightly to 49 basis points, while total delinquent loans decreased by $1.6 million from the prior year [18] Operational Highlights - Total operating revenue in Q4 rose to $16.4 million, up 6.3% year-over-year, primarily driven by net interest income [8] - Mortgage originations in Q4 were $72.4 million, with a full-year volume of $278 million, reflecting an 8% increase from the prior year [14] - Non-interest income for Q4 was $3.7 million, down 18.6% from the prior-year quarter, attributed to a negative contribution from other non-interest income [14] Capital Management - The company repurchased nearly 32,000 shares in Q4 at an average price just under $21, and over 283,000 shares for the full year [17] - A dividend of $0.155 per share was announced, marking the 13th consecutive year of increasing the annual dividend payout [17] Future Outlook - Management emphasized a focus on deposits, disciplined lending, and cross-selling opportunities, with a healthy loan pipeline and expansion efforts in various markets [19]

Financial Performance - GAAP net income for Q4 2025 was $3.9 million, a 7.8% increase from the prior year, with diluted earnings per share (DEPS) of $0.63, up 14.5%[6] - Net income for the full year 2025 was $14.0 million, representing a 21.8% improvement from $11.5 million in 2024[5] - Net income for the three months ended December 2025 was $3,918 thousand, slightly down from $4,046 thousand in September 2025, a decrease of 3.2%[30] - Adjusted net income for the twelve months ended December 31, 2025, was $14,776 thousand, up from $11,437 thousand in 2024, indicating a growth of 29.5%[38] - The diluted earnings per share for the twelve months ended December 31, 2025, was $2.19, compared to $1.72 in 2024, representing a year-over-year increase of 27.3%[38] Revenue and Income Sources - Net interest income for Q4 2025 reached $12.7 million, a 16.7% increase from $10.9 million in Q4 2024[5] - Noninterest income for Q4 2025 totaled $3.7 million, a decrease of 18.6% from the prior year, primarily due to lower mortgage loan servicing fees[11] - Total operating revenue for Q4 2025 was $16.4 million, a 6.3% increase from $15.5 million in Q4 2024[8] - Total operating revenue for the twelve months ended December 2025 was $65,560,000, up from $56,939,000 in the previous year[33] Asset and Loan Growth - Total loans increased by $133.9 million, or 12.8%, year-over-year, marking the seventh consecutive quarter of loan growth[5] - Loan balances reached $1,180.6 million, reflecting a growth of $133.9 million, or 12.8 percent, compared to the previous year[17] - Total assets increased to $1,545,367 thousand in December 2025, up from $1,496,263 thousand in September 2025, representing a growth of 3.7%[28] - Total assets increased to $1,536,215 thousand as of December 31, 2025, up from $1,395,473 thousand in 2024, representing a growth of 10.1%[36] Deposit Growth - Deposit growth was $154.6 million, or 13.4%, year-over-year, with total deposits reaching $1.31 billion[7] - Total deposits increased to $1.31 billion, growing $154.6 million, or 13.4 percent, year over year[14] - Total deposits rose to $1,307,244 thousand in December 2025, compared to $1,262,522 thousand in September 2025, marking an increase of 3.5%[28] Expense Management - Noninterest expense for Q4 2025 was $11.2 million, an increase of 2.1% from the prior year, driven by higher occupancy costs and taxes[12] - Total noninterest expense for the three months ended December 2025 was $11,239 thousand, a slight decrease from $11,498 thousand in September 2025, reflecting a reduction of 2.3%[30] - Total operating expense for the three months ended December 31, 2025, was $11,239 thousand, slightly up from $11,003 thousand in 2024, indicating a modest increase of 2.1%[38] Asset Quality - Nonperforming assets totaled $4.7 million, representing 0.30 percent of total assets, a decrease from 0.40 percent in the prior year[19] - Total nonperforming assets decreased by $833,000 from the prior year, indicating improved asset quality management[21] - The allowance for credit losses was 1.36 percent of total loans, providing coverage of 351.9 percent of nonperforming loans[20] - Nonperforming loans to total loans ratio was 0.39%, consistent with the previous quarter, indicating stable asset quality[34] Capital and Equity - Shareholders' equity totaled $141.2 million, an increase of $13.7 million from the prior year, or $3.01 per share[14] - The common equity tier 1 ratio was reported at 11.78%, down from 12.48%, reflecting a decrease in capital adequacy[34] - Market capitalization increased to $138,883 million, up from $120,907 million, indicating a positive market perception[34] Future Outlook - The Company remains focused on prudent organic growth and disciplined expense management to support sustainable performance[16] - The Company will hold the fourth quarter 2025 earnings conference call on January 30, 2026[22]

Financial Data and Key Metrics Changes - Net income for the fourth quarter was $3.9 million, with diluted EPS of $0.63, up $0.08 or approximately 15% year-over-year [4] - For the full year, GAAP EPS was $2.19, a 27% increase from $1.72 in 2024, marking the second-highest per-share earnings performance in the last 20 years [4] - Tangible book value per share increased to $18, up from $16 last year, representing a 12.5% increase [5] Business Line Data and Key Metrics Changes - Net interest income for the quarter totaled $12.7 million, a nearly 17% increase from $10.9 million in Q4 2024 [5] - Loan growth for the quarter was $70 million, an annualized increase of 25%, with year-over-year growth of $133.9 million or 12.8% [6] - Non-interest income decreased by 18.6% year-over-year to $3.7 million, primarily due to decreased mortgage servicing rates [12] Market Data and Key Metrics Changes - Total deposits increased by $45 million or 14% on an annualized basis in the quarter, with year-over-year growth of nearly $155 million or 13% [7] - Mortgage originations for the quarter were $72.4 million, down from the prior year but up compared to the linked quarter [9] - The company held approximately $50 million in excess liquidity and had access to $160 million in outstanding debt capacity [8] Company Strategy and Development Direction - The company aims to support prudent growth and long-term value creation through a well-capitalized balance sheet and diversified business lines [4] - Strategic initiatives focus on growing and diversifying revenue, operational excellence, and maintaining asset quality [10] - The Marblehead acquisition has transitioned from integration to execution, providing a foundation for organic growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline and the stability of the core deposit base, which supports performance improvement [30] - The company anticipates a gradual decrease in net interest margin in 2026 due to higher funding costs [38] - Management expects to maintain a positive operating leverage of 1.5-2 times in 2026, with a focus on expense control [55] Other Important Information - The company announced a dividend of $0.155 per share, marking the thirteenth consecutive year of increasing annual dividend payouts [30] - Total assets reached $3.6 billion, with a diversified asset base providing revenue diversification [8] Q&A Session Summary Question: Can you comment on margin and outlook? - Management noted that deposit pricing is a concern due to competitive pressures, forecasting a gradual decrease in net interest margin in 2026 [38] Question: What is the outlook for mortgage production? - Management expects low to mid single-digit growth in mortgage production for 2026, with potential for higher volumes if additional lenders are added [50][51] Question: How do you view expense growth for 2026? - Management anticipates expense growth to be maintained in the 3.5%-4% range, with a focus on improving operating leverage [54][56] Question: What is the current state of credit quality? - Management expects continued improvement in credit quality as existing credits are resolved, maintaining a robust internal loan review process [66]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $3.9 million, with diluted EPS of $0.63, up $0.08 or approximately 15% year-over-year [4] - For the full year, GAAP EPS was $2.19, a 27% increase over 2024 EPS of $1.72 [4] - Tangible book value per share increased to $18, up from $16 last year, representing a 12.5% increase [5] - Net interest income for Q4 totaled $12.7 million, a nearly 17% increase from $10.9 million in Q4 2024 [5] Business Line Data and Key Metrics Changes - Loan growth for Q4 was $70 million, a 25% annualized increase, with year-over-year growth of $133.9 million or 12.8% [6] - Total deposits increased by $45 million in Q4, a 14% annualized increase, and year-over-year deposit growth was nearly $155 million or 13% [7] - Non-interest income decreased by 18.6% year-over-year to $3.7 million, primarily due to decreased mortgage servicing rates [12] Market Data and Key Metrics Changes - Mortgage originations for Q4 were $72.4 million, down from the prior year but up compared to the linked quarter [9] - The company achieved a loan-to-deposit ratio of 90.3%, which remains within the targeted operating range of 90%-95% [26] Company Strategy and Development Direction - The company aims to leverage its well-capitalized balance sheet and diversified business lines to support prudent growth and long-term value creation [4] - Strategic initiatives focus on growing and diversifying revenue, enhancing operational efficiency, and maintaining asset quality [10] - The Marblehead acquisition has transitioned from integration to execution, providing a foundation for organic growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline and the stability of the core deposit base, which supports performance improvement [29] - The company anticipates a gradual decline in net interest margin (NIM) in 2026 due to higher funding costs [38] - Management expects to maintain a positive operating leverage of 1.5-2 times in 2026, despite anticipated expense growth of 3.5%-4% [54] Other Important Information - The company announced a dividend of $0.155 per share, marking the thirteenth consecutive year of increasing annual dividend payouts [29] - The allowance for credit losses remained robust at 1.36% of total loans, providing 352% coverage of non-performing assets [19] Q&A Session Summary Question: Can you elaborate on margin and outlook? - Management noted that deposit pricing is a concern due to competitive pressures, forecasting a gradual decline in NIM by 5-7 basis points in 2026 [38] Question: What is the outlook for mortgage production growth? - Management anticipates low to mid single-digit growth in mortgage production for 2026, with potential to reach $310-$375 million depending on staffing and market conditions [50][51] Question: How do you view expense growth for 2026? - Management expects expense growth to be maintained at 3.5%-4%, with a focus on improving operating leverage [54]

分组1 - SB Financial Group, Inc. (SBFG) reported quarterly earnings of $0.65 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and up from $0.52 per share a year ago, representing an earnings surprise of +1.56% [1] - The company posted revenues of $16.42 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 2.84%, compared to year-ago revenues of $15.45 million [2] - SB Financial Group has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has underperformed the market, losing about 2.4% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The current consensus EPS estimate for the coming quarter is $0.57 on revenues of $16.6 million, and for the current fiscal year, it is $2.45 on revenues of $68.9 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - SB Financial Group, Inc. reported a net income of $3.9 million for Q4 2025, marking a 7.8% increase year-over-year, with diluted earnings per share (DEPS) of $0.63, up 14.5% from the previous year [5][6][19] - The company achieved a total operating revenue of $16.4 million in Q4 2025, a 6.3% increase compared to Q4 2024, driven by higher net interest income [6][19] - For the full year 2025, net income reached $14.0 million, a 21.8% increase from $11.5 million in 2024, with adjusted DEPS of $2.31, up 35.1% [5][6][19] Financial Performance - Operating revenue for the twelve months ended December 31, 2025, was $65.6 million, a 15.1% increase from $56.9 million in 2024 [3] - Net interest income for Q4 2025 was $12.7 million, a 16.7% increase from $10.9 million in Q4 2024, driven by strong loan growth and rising loan yields [4][6] - Total loans increased by $133.9 million, or 12.8%, year-over-year, reaching $1.18 billion [12][16] Asset and Deposit Growth - Total deposits grew to $1.31 billion, an increase of $154.6 million, or 13.4%, year-over-year, supported by stable core deposit relationships [4][13] - The company reported a loan-to-deposit ratio of 90.3% and a loan-to-asset ratio of 76% as of December 31, 2025 [12] Noninterest Income and Expenses - Noninterest income for Q4 2025 totaled $3.7 million, a decrease of 18.6% from the prior year, primarily due to lower mortgage loan servicing fees [9][10] - Noninterest expense increased by 2.1% to $11.2 million, driven by higher occupancy costs and state taxes, while the efficiency ratio improved to 68.1% [11][19] Asset Quality - Nonperforming assets totaled $4.7 million, representing 0.30% of total assets, a decrease from 0.40% in the prior year [19][20] - The allowance for credit losses was 1.36% of total loans, providing coverage of 351.9% of nonperforming loans, indicating strong credit risk management [20][21]

Core Viewpoint - SB Financial Group, Inc. is set to release its fourth quarter and full year 2025 financial results on January 29, 2026, with a conference call scheduled for January 30, 2026 [1] Company Overview - SB Financial Group is a diversified financial services holding company based in Defiance, Ohio, operating through State Bank & Trust Company and SBFG Title, LLC [3] - The company offers a comprehensive range of financial services including community banking, mortgage banking, wealth management, private client services, and title insurance [3] - State Bank operates 27 offices across 11 Ohio counties and Northeast Indiana, along with 27 ATMs and four loan production offices [3] - SB Financial's common stock is traded on the NASDAQ Capital Market under the ticker symbol "SBFG" [3] Conference Call Details - Interested parties can access the conference call by dialing 888-338-9469 and requesting the "SB Financial Group Conference Call" [2] - The conference call will also be available via live webcast at ir.yourstatebank.com, with an audio replay accessible on the company's website [2] Investor Contact Information - Mark A. Klein serves as Chairman, President, and CEO, and can be reached at 419-783-8920 [4] - Anthony V. Cosentino is the Executive Vice President and CFO, available at 419-785-3663 [4]

Core Viewpoint - SB Financial Group, Inc. (SBFG) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for SB Financial Group indicate an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for SB Financial Group - For the fiscal year ending December 2025, SB Financial Group is expected to earn $2.35 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.4% over the past three months [8].

Core Viewpoint - SB Financial Group, Inc. announced a transition in its Board of Directors, highlighting the retirement of Rita A. Kissner and the appointment of Sue A. Strausbaugh [1][2][3]. Group 1: Board Transition - Rita A. Kissner retired from the Board after over 21 years of service and was named Director Emeritus in recognition of her contributions [2][3]. - Sue A. Strausbaugh was appointed to the Board, effective December 17, 2025, bringing over 13 years of experience on the Defiance Advisory Board [2][3]. Group 2: Leadership Comments - Mark Klein, Chairman and CEO, expressed gratitude for Ms. Kissner's dedicated service and leadership, emphasizing her role in navigating strategic priorities and governance [3]. - Klein also welcomed Sue Strausbaugh, noting her trusted perspective and understanding of the company's strategy and communities [3]. Group 3: 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 [4]. - The company provides a full range of financial services, including wealth management, mortgage banking, and commercial lending, through 27 offices and 27 ATMs across Ohio and Indiana [4].

Core Insights - The article emphasizes the importance of a ranking system based on earnings estimates and revisions to identify winning stocks, while also acknowledging the diverse strategies investors may adopt [1] - Value investing is highlighted as a popular method for identifying undervalued stocks through fundamental analysis and established metrics [2] Company Analysis: SB Financial Group (SBFG) - SBFG is currently rated as a Zacks Rank 1 (Strong Buy) and has received an "A" grade in the Value category, indicating it is among the best value stocks available [3] - The company has a Price-to-Sales (P/S) ratio of 1.4, which is lower than the industry average of 1.81, suggesting it may be undervalued [4] - SBFG's Price-to-Cash Flow (P/CF) ratio stands at 8.39, significantly lower than the industry average of 16.42, indicating a favorable cash outlook and potential undervaluation [5] - The P/CF ratio for SBFG has fluctuated over the past year, with a high of 10.29 and a low of 7.29, and a median of 8.35, reinforcing its attractiveness as a value stock [5] - Overall, the metrics suggest that SBFG is likely undervalued, particularly in light of its strong earnings outlook, positioning it as one of the strongest value stocks in the market [6]