SB Financial Group Announces Second Quarter 2024 Results

Core Insights - SB Financial Group reported a net income of $3.1 million for Q2 2024, reflecting a 1.2% increase year-over-year, with diluted earnings per share rising to $0.47, a 6.8% increase from $0.44 [14][16] - The company experienced a slight decline in operating revenue of 1.0% year-over-year, totaling $14.0 million, but showed a 7.0% increase from the previous quarter [16] - Total deposits reached $1.12 billion, marking a 4.1% increase from $1.07 billion in the same quarter last year, indicating strong customer trust and effective margin oversight [14][20] Earnings Highlights - Operating revenue for Q2 2024 was $14.0 million, down 1.0% from $14.2 million in Q2 2023 [14] - Net interest income decreased by 1.7% to $9.7 million from $9.8 million year-over-year [14] - Noninterest income slightly increased by 0.6% to $4.4 million compared to $4.4 million in the prior year [20] Loan and Deposit Growth - The loan portfolio expanded to $1.01 billion, an increase of $20.6 million or 2.1% from $984.8 million [14][20] - Total deposits increased by $44.0 million or 4.1% year-over-year, reflecting a strong deposit base [20] - Mortgage loan originations rose by 14.9% to $75.1 million from $65.4 million in the same quarter last year, indicating a strengthening housing market [3] Noninterest Income and Expenses - Noninterest income growth was driven by a 20.9% increase in gains from mortgage sales and a 14.4% rise in mortgage loan servicing fees [2] - Noninterest expenses increased by 3.2% to $10.7 million from $10.3 million in the previous year, primarily due to higher commission costs from increased mortgage volume [20] Asset Quality and Risk Management - Nonperforming loans constituted 0.47% of total loans, up from 0.25% in the previous quarter, but criticized loan categories decreased by nearly 23% year-over-year [22] - The company maintained a conservative risk profile with no loan charge-offs reported, highlighting effective management of loan repayments [20] Balance Sheet Highlights - Total assets increased marginally to $1.34 billion, up 0.06% year-over-year [20] - Shareholders' equity grew by 1.4% to $125.5 million compared to the previous quarter, and 6.6% year-over-year [6]