SB Financial Group (NASDAQ:SBFG) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

SB Financial Group (NASDAQ:SBFG) released its earnings results on Thursday. The financial services provider reported $0.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.01, Zacks reports. SB Financial Group had a return on equity of 11.82% and a net margin of 17.67%. The firm had revenue of $18.07 million during the quarter, compared to analysts’ expectations of $12.80 million.

Here are the key takeaways from SB Financial Group’s conference call:

• Loan growth remained strong, with balances up 9.8% year over year and 2.5% sequentially, marking the 10th consecutive quarter of linked-quarter growth. Management cited a commercial pipeline exceeding $53 million, plus $15 million–$25 million of construction opportunities.
• Operating revenue rose 9% year over year to $18.1 million, while net interest margin expanded to 3.50% and non-interest income increased 9.6%. Management expects continued interest-income growth, although it anticipates a modest margin decline in the fourth quarter.
• Credit metrics remained exceptionally strong, with non-performing assets at just 0.27% of total assets, net charge-offs below one basis point, and delinquency under 34 basis points. The company also raised its quarterly dividend to $0.165 per share, supporting its goal of 14 consecutive years of annual dividend increases.
• Operating expenses increased 14.4% year over year to $13.2 million due to hiring, employee medical costs, incentives, and technology conversion expenses. Management expects these costs to normalize somewhat, but now forecasts approximately 4%–5% base expense growth in 2027, with additional technology spending possible.
• Deposits increased 9.5% year over year but declined $8.3 million sequentially after the expected runoff of a large wholesale relationship. Management said liquidity remains healthy, with approximately $65 million of excess liquidity and sufficient funding for the current loan pipeline.

SB Financial Group Stock Performance

Shares of SBFG traded up $0.35 during mid-day trading on Friday, reaching $30.43. The company’s stock had a trading volume of 348 shares, compared to its average volume of 20,039. SB Financial Group has a 1-year low of $18.16 and a 1-year high of $32.93. The stock has a market cap of $190.16 million, a P/E ratio of 11.35 and a beta of 0.19. The business has a 50-day simple moving average of $28.90 and a two-hundred day simple moving average of $25.55. The company has a current ratio of 0.95, a quick ratio of 0.94 and a debt-to-equity ratio of 0.29.

Wall Street Analyst Weigh In

SBFG has been the topic of a number of recent research reports. Wall Street Zen downgraded shares of SB Financial Group from a “buy” rating to a “hold” rating in a report on Saturday, August 15th. Weiss Ratings upgraded shares of SB Financial Group from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy”.

SB Financial Group Company Profile

SB Financial Group, Inc is a bank holding company headquartered in Defiance, Ohio. Through its principal subsidiary, The State Bank and Trust Company, the company provides community banking services to individuals, families, farmers, professionals and businesses.

The bank offers a range of financial products, including checking and savings accounts, certificates of deposit, commercial and residential real estate lending, consumer loans, agricultural financing and business loans. Its services also include mortgage banking, treasury management, online and mobile banking, wealth management and trust services.

SB Financial Group’s banking operations primarily serve communities in northwest Ohio and northeast Indiana through a local branch network and digital channels.