SB Financial Group Announces Fourth Quarter 2024 Results

Core Viewpoint - SB Financial Group, Inc. reported its fourth-quarter and full-year 2024 financial results, highlighting growth in key areas despite a slight decline in net income and earnings per share compared to the previous year. The company emphasized its ability to navigate challenges while maintaining operational efficiency and delivering shareholder value [4][6][22]. Financial Performance - For the fourth quarter of 2024, operating revenue increased by 2.2% to $15.5 million compared to $15.1 million in the prior year, while net income decreased by 6.4% to $3.6 million [4][8]. - Interest income for the quarter rose by 11.4% to $16.8 million, driven by strong loan performance, with loans increasing by $46.5 million year-over-year [5][7]. - Noninterest income declined by 17.6% year-over-year to $4.6 million, primarily due to the Visa B share sale recorded in the prior year quarter [9][14]. - The company reported a full-year net income of $11.5 million, down 5.2% from $12.1 million in 2023, with diluted earnings per share of $1.72, a decrease of 1.7% from $1.75 [7][20]. Loan and Deposit Growth - Total loans reached $1.05 billion, marking a year-over-year increase of 4.7% [19][23]. - Total deposits increased by $82.4 million, or 7.7%, to $1.15 billion, reflecting strong customer engagement [20][25]. Mortgage Banking Operations - Mortgage originations surged to $72.5 million, an 83.3% increase year-over-year, with mortgage sales rising to $62.3 million, an 86.7% increase compared to the same period last year [10][11]. - The mortgage servicing portfolio expanded to $1.43 billion, achieving a year-over-year increase of 4.4% [10][11]. Asset Quality - As of December 31, 2024, nonperforming assets totaled $5.5 million, representing 0.40% of total assets, an increase from 0.25% in the prior year [26][30]. - The allowance for credit losses remained robust at 1.44% of total loans, providing 273.7% coverage of nonperforming loans [27][28]. Shareholder Value and Capital Management - The tangible book value per share increased by 6.8% to $16.00, reflecting the company's commitment to delivering shareholder value [5][7]. - During the fourth quarter, the company repurchased 130,465 shares, continuing its active buyback program [21].