SB Financial Group(US:SBFG)2025-11-06 18:10Financial Performance - Net income for Q3 2025 was $4.0 million, a 71.9% increase from $2.4 million in Q3 2024, with diluted earnings per share rising to $0.64 from $0.35[158]. - Operating revenue for Q3 2025 reached $16.6 million, a 15.9% increase from $14.3 million in Q3 2024[160]. - Net income for the first nine months of 2025 was $10.1 million, an increase of $2.2 million, or 28.3% compared to $7.8 million in the same period of 2024[165]. - Total operating revenue for the first nine months of 2025 was $49.1 million, up $7.7 million, or 18.5% from $41.5 million in the prior year[167]. Income and Expenses - Total noninterest income for Q3 2025 was $4.2 million, slightly up from $4.1 million in Q3 2024, while mortgage loan sales increased by 8.4%[158][162]. - Total noninterest expense for Q3 2025 was $11.5 million, an increase of $0.5 million from $11.0 million in Q3 2024, driven by higher mortgage activity and one-time fees[164]. - Total noninterest income was $13.4 million for the first nine months of 2025, an increase of $0.9 million from $12.5 million in the prior year[169]. - Total noninterest expense for the first nine months of 2025 was $35.8 million, up $3.8 million from $32.0 million in the prior year, including over $0.7 million in merger-related expenses[171]. Interest Income and Loans - Net interest income for Q3 2025 was $12.3 million, up from $10.2 million in Q3 2024, with a net interest margin of 3.48% compared to 3.16% in the prior year[161]. - Net interest income (NII) for the first nine months of 2025 was $35.7 million, an increase of $6.7 million from $29.0 million in the prior year, with a net interest margin of 3.44% compared to 3.08%[168]. - Total loans were $1.11 billion as of September 30, 2025, up $63.8 million, or 6.1% from year-end 2024[173]. Credit Losses and Delinquency - The provision for credit losses in Q3 2025 was $124,000, down from $200,000 in Q3 2024, with net charge-offs of $2,000 compared to $27,000 in the previous year[159]. - Provision for credit losses for the first nine months of 2025 was $1.1 million, compared to $0.2 million in the prior year, with net charge-offs of $132,000[166]. - Total delinquent loans at the end of Q3 2025 were $5.0 million, representing 0.45% of total loans, while the allowance for credit losses was 1.44% of total loans[160]. - Non-performing assets as a percentage of total assets decreased to 0.32% in Q3 2025 from 0.40% in Q3 2024[160]. Assets and Deposits - Total assets as of September 30, 2025, were $1.50 billion, an increase of $116.7 million, or 8.5% since December 31, 2024[173]. - Total deposits increased to $1.26 billion, an increase of $109.9 million, or 9.5% since the end of 2024[173]. - The Company had $285.0 million in liquid assets as of September 30, 2025, compared to $235.9 million at December 31, 2024[177]. Interest Rate Risk Management - The Company evaluates its exposure to interest rate changes by assessing both management processes and quantitative levels of exposure[190]. - The Federal Reserve's Joint Agency Policy Statement on Interest Rate Risk emphasizes the need for active oversight and a comprehensive risk management process[191]. - Financial institutions face lower profit margins if they cannot adapt to changing market interest rates, particularly when assets are funded with short-term liabilities[192]. - Institutions can manage interest rate risk through matching repricing periods, selling assets, repaying liabilities, or using hedging strategies[193]. - The Company does not currently utilize derivative financial instruments for interest rate risk management but may consider them as market conditions warrant[193]. - There has been no material change in the Company's market risk from the information in the Annual Report for the year ended December 31, 2024[194].