SB Financial Group Announces First Quarter 2025 Results

Core Insights - SB Financial Group, Inc. reported a strong first quarter for 2025, highlighting growth in operating revenue and net interest income despite a slight decline in net income compared to the previous year [1][2][4]. Financial Performance - Operating revenue increased by 17.2% to $15.4 million compared to $13.1 million in the prior year [3][6]. - Interest income rose by 13.5% to $17.4 million, driven by strong loan growth [3][4]. - Net interest income grew by 22.9% to $11.3 million, reflecting higher interest income on loans [3][6]. - Noninterest income increased by 3.9% to $4.1 million, attributed to gains on sales of mortgage loans and title insurance [3][10]. - Net income for the quarter was $2.2 million, down 8.9% from $2.4 million in the prior year [3][4]. Loan and Deposit Growth - Total loans increased by $96.7 million, or 9.8%, year-over-year, with $41.5 million growth from the linked quarter [4][13]. - Total deposits rose to $1.27 billion, a growth of $158.9 million or 14.3% year-over-year, including $56 million from the Marblehead Bank acquisition [5][14]. - The company achieved its fourth consecutive quarter of loan growth, with organic loan growth of $78.2 million [16]. Asset Quality - Nonperforming assets totaled $6.1 million, representing 0.41% of total assets, an increase from 0.22% in the prior year [20][21]. - The allowance for credit losses was 1.41% of total loans, providing 254.4% coverage of nonperforming loans [21][22]. Strategic Initiatives - The successful acquisition of Marblehead Bank significantly strengthened liquidity through low-cost deposits and expanded market presence in Northern Ohio [4][16]. - The company remains focused on maintaining a balanced strategy for sustainable revenue growth while managing costs effectively [6][10]. Shareholder Value - Tangible book value per share increased by 5.8% to $15.79, reflecting management's commitment to enhancing shareholder value [4][14]. - The company repurchased 26,446 shares during the quarter, indicating a dedication to returning value to shareholders [15].