SB Financial Group Announces Fourth Quarter 2025 Results

Core Insights - SB Financial Group, Inc. reported a net income of $3.9 million for Q4 2025, marking a 7.8% increase year-over-year, with diluted earnings per share (DEPS) of $0.63, up 14.5% from the previous year [5][6][19] - The company achieved a total operating revenue of $16.4 million in Q4 2025, a 6.3% increase compared to Q4 2024, driven by higher net interest income [6][19] - For the full year 2025, net income reached $14.0 million, a 21.8% increase from $11.5 million in 2024, with adjusted DEPS of $2.31, up 35.1% [5][6][19] Financial Performance - Operating revenue for the twelve months ended December 31, 2025, was $65.6 million, a 15.1% increase from $56.9 million in 2024 [3] - Net interest income for Q4 2025 was $12.7 million, a 16.7% increase from $10.9 million in Q4 2024, driven by strong loan growth and rising loan yields [4][6] - Total loans increased by $133.9 million, or 12.8%, year-over-year, reaching $1.18 billion [12][16] Asset and Deposit Growth - Total deposits grew to $1.31 billion, an increase of $154.6 million, or 13.4%, year-over-year, supported by stable core deposit relationships [4][13] - The company reported a loan-to-deposit ratio of 90.3% and a loan-to-asset ratio of 76% as of December 31, 2025 [12] Noninterest Income and Expenses - Noninterest income for Q4 2025 totaled $3.7 million, a decrease of 18.6% from the prior year, primarily due to lower mortgage loan servicing fees [9][10] - Noninterest expense increased by 2.1% to $11.2 million, driven by higher occupancy costs and state taxes, while the efficiency ratio improved to 68.1% [11][19] Asset Quality - Nonperforming assets totaled $4.7 million, representing 0.30% of total assets, a decrease from 0.40% in the prior year [19][20] - The allowance for credit losses was 1.36% of total loans, providing coverage of 351.9% of nonperforming loans, indicating strong credit risk management [20][21]