SB Financial Group Announces Third Quarter 2024 Results

Core Insights - SB Financial Group reported a net income of $2.4 million for Q3 2024, a decrease of 12.4% year-over-year, with diluted EPS at $0.35, which is a 3.0% increase when adjusted for mortgage servicing rights impairment [1][2][3] - The company experienced a 6.8% increase in net interest income, totaling $10.2 million, and total loans rose to $1.03 billion, reflecting a 4.1% increase [1][3][4] - Tangible book value per share increased by 26.0% year-over-year, reaching $16.49 [1][3] Financial Performance - Operating revenue for Q3 2024 was $14.3 million, a 4.5% increase from $13.7 million in Q3 2023 [4][11] - Noninterest income slightly declined by 1.0% to $4.12 million, primarily due to lower mortgage loan servicing fees [8][9] - Noninterest expenses increased by 5.0% to $11.0 million, driven by higher personnel costs and data processing fees [9][10] Mortgage Banking - Mortgage loan originations increased by 15.5% year-over-year to $70.7 million, while mortgage sales reached $61.3 million, a 13.3% increase [5][6] - Mortgage banking net revenue decreased to $1.35 million, down 17.9% from the previous year, largely due to a negative valuation adjustment of $465 thousand [6][8] - The mortgage servicing portfolio grew by 2.9% to $1.41 billion, indicating a commitment to long-term relationships despite market challenges [6][8] Balance Sheet and Asset Quality - Total assets increased by 5.1% to $1.39 billion, with total deposits reaching $1.16 billion, a 6.8% growth [12][13] - Nonperforming loans constituted 0.54% of total loans, up from 0.47% in the prior quarter, with a robust allowance for credit losses coverage at 276.8% [16][17] - Shareholders' equity rose to $132.8 million, an 18.2% increase year-over-year, reflecting retained earnings growth [13][14]