SB Financial Group Announces Third Quarter 2024 Results

Author's Avatar
Oct 24, 2024

DEFIANCE, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. ( SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights compared to the third quarter of the prior year:

  • Net income of $2.4 million, down 12.4 percent with Diluted Earnings Per Share (“EPS”) of $0.35. EPS is up 3.0% when adjusted for mortgage servicing rights impairment in both periods.
  • Net interest income totaled $10.2 million, a 6.8 percent increase from $9.5 million.
  • Total loans increased to $1.03 billion, up by $40.9 million or 4.1 percent.
  • Tangible book value per share ended the quarter at $16.49, up $3.40 per share or 26.0%.

Nine Months Ended September 30, 2024, highlights over prior-year nine months include:

  • Mortgage Banking Revenue increased to $4.7 million, up by 7.6 percent from $4.4 million.
  • Noninterest income increased 2.2% to $12.5 million, up from $12.2 million.
  • Noninterest expense increased 1.1% to $32.0 million, up from $31.6 million.

Trailing Twelve Months Ended September 30, 2024, highlights compared to the prior year:

  • Diluted EPS was $1.74 for the twelve months ended September 2024, reflecting a 3.6% increase from the prior twelve months of $1.68.
  • Total deposits reached $1.16 billion by the end of September 2024, marking a 6.8% growth from $1.09 billion at the same time in 2023.
  • Mortgage origination volume was $228.3 million for the trailing twelve months, while the servicing portfolio increased by 2.9% to $1.41 billion.
Earnings HighlightsThree Months EndedNine Months Ended
($ in thousands, except per share & ratios)Sep. 2024Sep. 2023% ChangeSep. 2024Sep. 2023% Change
Operating revenue$14,309$13,6994.5%$41,485$41,879-0.9%
Interest income16,54814,79611.8%47,50243,02610.4%
Interest expense6,3625,26021.0%18,47713,33738.5%
Net interest income10,1869,5366.8%29,02529,689-2.2%
Provision (recovery) for credit losses200(6)3433.3%200389-48.6%
Noninterest income4,1234,163-1.0%12,46012,1902.2%
Noninterest expense11,00310,4815.0%31,95631,5931.1%
Net income2,3542,687-12.4%7,8358,212-4.6%
Earnings per diluted share0.350.39-10.3%1.171.18-0.8%
Return on average assets0.68%0.80%-15.0%0.77%0.81%-4.9%
Return on average equity7.32%8.73%-16.2%8.41%8.72%-3.6%

"We delivered strong operational performance during the September quarter with our pretax preprovision earnings up over 14% when we adjust for the servicing rights impairment," stated Mark A. Klein, Chairman, President, and CEO. "We are on track with our Marblehead acquisition and are especially pleased that we have increased the tangible book value per share by 26% in the last year."

"Our Loan Book expanded to $1.03 billion, an increase of $40.9 million, underscoring our disciplined approach to portfolio expansion. Despite market pressures from interest rates, our deposits increased by $74.2 million or 6.8% year-over-year reaching $1.16 billion," added Mr. Klein.

RESULTS OF OPERATIONS

Consolidated Revenue

In the third quarter of 2024, core earnings and margins rose with operating revenue rising to $14.3 million, a 4.5% increase from the $13.7 million in the prior year. While net interest income rose to $10.2 million, a 6.8% increase year-over-year, the Company faced pressure from rising deposit costs, which drove a 21% increase in interest expenses. Despite this, net interest margin saw a slight expansion, increasing by 9 basis points compared to the same period last year, reaching 3.17%.

Noninterest income was down 1.0%, however, when adjusted for the servicing rights impairment and the gain on sale of assets, it was up nearly 4%. Mortgage gain on sale had its best quarter since the first quarter of 2022 and we saw solid increases in Title insurance revenue (up 13%) and Wealth management revenue (up 5%).

Mortgage Loan Business

In the third quarter of 2024, SB Financial Group recorded a 15.5% year-over-year increase in mortgage loan originations, reaching $70.7 million, up from $61.2 million in the corresponding period last year. This strong performance reflects our ability to capitalize on favorable market conditions and underscores the resilience of the housing sector, which continues to show signs of strength despite broader economic challenges. Mortgage sales followed this growth, reaching $61.3 million, or 86.6% of total originations. This represents a 13.3% year-over-year increase from $54.1 million, signaling our ongoing success in expanding our market reach and maintaining a competitive position. The sales volume highlights the robustness of our operations, even as competition intensifies in the residential lending space.

However, mortgage banking net revenue decreased to $1.35 million, down 17.9% from $1.65 million in the prior year. This decline was primarily driven by a negative Originated Mortgage Servicing Rights (“OMSR”) valuation adjustment of $465 thousand this quarter, significantly impacting net loan servicing fees. This reflects broader market headwinds, including shifts in borrower behavior and refinancing rates, which put pressure on servicing valuations. Despite this, gains from the sale of mortgages and continued efficiency in our operations helped partially offset the decline. The mortgage servicing portfolio expanded by 2.9%, reaching $1.41 billion. This steady growth in our servicing portfolio is a testament to our commitment to building long-term, sustainable relationships.

Mr. Klein stated, "This quarter has showcased improved efficiency in our mortgage operations. Although our results slightly missed our internal targets, the shortfall primarily reflects the heightened competitiveness and shifting dynamics within the mortgage market. Despite these challenges, our proactive measures, including expanding our origination teams, including closing our first loan from the Cincinnati market, have positioned us to capitalize on market opportunities and maintain our momentum."

Mortgage Banking
($ in thousands)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023Prior Year Growth
Mortgage originations$70,715$75,110$42,912$39,566$61,200$9,515
Mortgage sales61,27155,83536,62333,36254,0857,186
Mortgage servicing portfolio1,406,2731,389,8051,371,7131,366,6671,367,20939,064
Mortgage servicing rights14,35714,54814,19113,90613,893464
Revenue
Loan servicing fees87486285585585024
OMSR amortization(370)(335)(273)(282)(334)(36)
Net administrative fees504527582573516(12)
OMSR valuation adjustment(465)38181(12)(78)(387)
Net loan servicing fees39565763561438(399)
Gain on sale of mortgages1,3111,2777817471,207104
Mortgage banking revenue, net$ 1,350$ 1,842$ 1,544$ 1,308$ 1,645$ (295)

Noninterest Income and Noninterest Expense

For the third quarter of 2024, SB Financial Group's noninterest income slightly declined to $4.12 million, representing a 1.0% decrease compared to $4.16 million in the third quarter of 2023. This minor reduction was primarily driven by lower mortgage loan servicing fees, which fell from $438 thousand in the third quarter of 2023 to $39 thousand in the third quarter of 2024, reflecting significant pressure in the mortgage servicing market. Furthermore, other noninterest income also contributed to the decline. However, this was partially offset by an increase in wealth management fees, which rose by 5.4% to $882 thousand, and a gain on the sale of mortgage loans and OMSR, which increased to $1.31 million from $1.21 million in the prior-year quarter. The gain on the sale of assets further contributed positively with $200 thousand realized this quarter.

Noninterest expenses for the third quarter were reported at $11.0 million, reflecting a 5.0% increase compared to $10.5 million in the third quarter of 2023. This rise was primarily driven by the increase of additional talent, which rose by 10.3% to $6.06 million, along with a 17% increase in data processing fees to $758 thousand. While certain expense categories saw reductions, such as other expenses, which decreased to $804 thousand from $1.1 million in the prior year, these declines were not sufficient enough to offset the overall increase in operating expenses.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023Prior Year Growth
Noninterest Income (NII)$4,123$4,386$3,951$5,531$4,163$(40)
NII / Total Revenue28.8%31.5%30.1%36.6%30.4%-1.6%
NII / Average Assets1.2%1.3%1.2%1.7%1.2%0.0%
Total Revenue Growth4.5%-0.6%-6.1%3.4%-5.3%-0.9%
Noninterest Expense (NIE)$11,003$10,671$10,282$10,369$10,481$522
Efficiency Ratio76.8%75.9%78.2%68.4%79.0%-2.2%
NIE / Average Assets3.2%3.2%3.1%3.1%3.1%0.1%
Net Noninterest Expense/Avg. Assets-2.0%-1.9%-1.9%-1.4%-1.9%-0.1%
Total Expense Growth5.0%3.2%-4.6%1.0%0.9%5.0%

Mr. Klein commented on the financial performance, stating, "Our noninterest income continues to show resilience, supported by gains from mortgage-related activities and consistent wealth management performance. As expected, the competitive environment and market fluctuations impacted servicing fees. On the expense side, our focus remains on managing costs related to growth initiatives, and we are committed to optimizing our cost structure to maintain operational efficiency and deliver sustained value to our stakeholders."

Balance Sheet

As of September 30, 2024, SB Financial Group continued to demonstrate financial stability, with total assets increasing to $1.39 billion, a 5.1% increase from $1.33 billion at the end of the prior-year period. This growth underscores our ability to maintain a robust financial position amidst changing market conditions.

Our loan portfolio remained strong, standing at $1.03 billion, up by $40.9 million or 4.1% compared to the prior year. This growth highlights our effective lending practices and strong demand in the credit market. Additionally, cash and cash equivalents increased significantly to $49.3 million, up 159.1% from $19.0 million a year ago, enhancing our liquidity position and providing us with greater flexibility in navigating economic uncertainties.

Deposits increased to $1.16 billion, reflecting a 6.8% growth compared to the prior-year figure of $1.09 billion, driven by increases across all interest-bearing deposit categories. This growth reflects continued trust from our clients and a solid base to support ongoing operations.

Shareholders’ equity expanded significantly to $132.8 million, a 5.9% increase from the linked quarter and an 18.2% year-over-year rise, underscoring our commitment to driving shareholder value. This improvement can be attributed to retained earnings growth and an improvement in accumulated comprehensive losses. The year-over-year growth in shareholders' equity reflects our focus on strengthening the balance sheet and optimizing capital allocation strategies.

Mr. Klein, commented, "In 2024, we have maintained a disciplined and proactive approach to our growth and capital management, aligning closely with our strategic objectives. Our ability to sustain and grow our loan portfolio, even in a highly competitive market, demonstrates the resilience of our business model and the effectiveness of our relationship-driven lending practices. Furthermore, the year-over-year increase in shareholders' equity highlights our continued commitment to delivering shareholder value. We remain poised to leverage future opportunities that will further fortify our financial position and ensure long-term prosperity for our stakeholders."

Loan Balances
($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023Annual Growth
Commercial$123,821$123,287$120,016$126,716$120,325$3,496
% of Total12.0%12.3%12.1%12.7%12.2%2.9%
Commercial RE459,449434,967429,362424,041421,73637,713
% of Total44.6%43.3%43.3%42.4%42.6%8.9%
Agriculture64,88764,32962,36565,65960,9283,959
% of Total6.3%6.4%6.3%6.6%6.2%6.5%
Residential RE314,010316,233314,668318,123320,306(6,296)
% of Total30.5%31.5%31.7%31.8%32.4%-2.0%
Consumer & Other67,78866,57465,14165,67365,7262,062
% of Total6.6%6.6%6.6%6.6%6.6%3.1%
Total Loans$ 1,029,955$ 1,005,390$ 991,552$ 1,000,212$ 989,021$ 40,934
Total Growth Percentage4.1%
Deposit Balances
($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023Annual Growth
Non-Int DDA$222,425$208,244$219,395$228,713$224,182$(1,757)
% of Total19.2%18.7%19.7%21.4%20.7%-0.8%
Interest DDA202,097190,857169,171166,413174,72927,368
% of Total17.4%17.1%15.2%15.5%16.1%15.7%
Savings241,761231,855244,157216,965226,07715,684
% of Total20.8%20.8%21.9%20.3%20.8%6.9%
Money Market228,182225,650221,362202,605216,56511,617
% of Total19.7%20.2%19.9%18.9%20.0%5.4%
Time Deposits265,068258,582258,257255,509243,76621,302
% of Total22.9%23.2%23.2%23.9%22.5%8.7%
Total Deposits$ 1,159,533$ 1,115,188$ 1,112,342$ 1,070,205$ 1,085,319$ 74,214
Total Growth Percentage6.8%

Asset Quality

SB Financial Group's commitment to maintaining exceptional asset quality remained strong through the third quarter of 2024. As of September 2024, nonperforming loans constituted 0.54% of total loans, an increase from 0.47% in the prior quarter. While the allowance for credit losses coverage stood at 276.8% of nonperforming loans—below the 330% reported in the linked quarter—it remains robust, signaling a conservative approach to risk management.

Additionally, the net loan charge-offs to average loans ratio was a modest 0.01%, further highlighting SB Financial Group’s effective loan repayment management. Collectively, these metrics reinforce our reputation for disciplined risk oversight and credit administration.

Mr. Klein concluded, “Our third quarter performance underscores our continued commitment to maintaining high asset quality. Although we observed a slight increase in nonperforming loans and a decrease in our reserve coverage ratio, our allowance for credit losses remains robust. This, coupled with our disciplined approach to credit risk management, demonstrates our focus on preserving the long-term strength of our loan portfolio and ensuring stability amidst ongoing economic shifts."

Nonperforming AssetsAnnual
Change
($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023
Commercial & Agriculture$2,899$2,781$897$748$717$2,182
% of Total Com./Ag. loans1.54%1.48%0.49%0.39%0.40%304.3%
Commercial RE81347549168222591
% of Total CRE loans0.18%0.11%0.01%0.04%0.05%266.2%
Residential RE1,5361,2471,2951,6902,182(646)
% of Total Res. RE loans0.49%0.39%0.41%0.53%0.68%-29.6%
Consumer & Other27023119321220862
% of Total Con./Oth. loans0.40%0.35%0.30%0.32%0.32%29.8%
Total Nonaccruing Loans5,5184,7342,4342,8183,3292,189
% of Total loans0.54%0.47%0.25%0.28%0.34%65.8%
Foreclosed Assets and Other Assets-510510511629(629)
Total Change (%)-100.0%
Total Nonperforming Assets$5,518$5,244$2,944$3,329$3,958$1,560
% of Total assets0.40%0.39%0.22%0.25%0.30%39.41%

Webcast and Conference Call

The Company will hold the third quarter 2024 earnings conference call and webcast on October 25, 2024, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 23 offices: 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 23 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

Forward-Looking Statements

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Investor Contact Information:

Mark A. Klein
Chairman, President and
Chief Executive Officer
[email protected]

Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
[email protected]

SB FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS - (Unaudited)
SeptemberJuneMarchDecemberSeptember
($ in thousands)20242024202420232023
ASSETS
Cash and due from banks$49,348$21,983$26,602$22,965$19,049
Interest bearing time deposits1,7062,4172,4171,5351,180
Available-for-sale securities211,511207,856213,239219,708212,768
Loans held for sale8,9277,8644,7302,5253,206
Loans, net of unearned income1,029,9551,005,390991,5521,000,212989,021
Allowance for credit losses(15,278)(15,612)(15,643)(15,786)(15,790)
Premises and equipment, net20,71520,86020,98521,37821,934
Federal Reserve and FHLB Stock, at cost5,2235,2046,5127,2796,261
Foreclosed assets and other assets-510510511629
Interest receivable4,8424,8183,7064,6576,673
Goodwill23,23923,23923,23923,23923,239
Cash value of life insurance30,48830,29430,10329,12129,291
Mortgage servicing rights14,35714,54814,19113,90613,893
Other assets8,91612,81513,86911,99915,120
Total assets$1,393,949$1,342,186$1,336,012$1,343,249$1,326,474
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing demand$222,425$208,244$219,395$228,713$224,182
Interest bearing demand202,097190,857169,171166,413174,729
Savings241,761231,855244,157216,965226,077
Money market228,182225,650221,362202,605216,565
Time deposits265,068258,582258,257255,509243,766
Total deposits1,159,5331,115,1881,112,3421,070,2051,085,319
Short-term borrowings15,24015,17812,91613,38716,519
Federal Home Loan Bank advances35,00035,00035,00083,60059,500
Trust preferred securities10,31010,31010,31010,31010,310
Subordinated debt net of issuance costs19,67819,66619,65419,64219,630
Interest payable3,3742,9442,7722,4432,216
Other liabilities17,97318,42119,29519,32020,632
Total liabilities1,261,1081,216,7071,212,2891,218,9071,214,126
Shareholders' Equity
Common stock61,31961,31961,31961,31961,319
Additional paid-in capital15,09015,19514,97815,12415,037
Retained earnings113,515112,104109,938108,486105,521
Accumulated other comprehensive loss(24,870)(31,801)(31,547)(29,831)(39,517)
Treasury stock(32,213)(31,338)(30,965)(30,756)(30,012)
Total shareholders' equity132,841125,479123,723124,342112,348
Total liabilities and shareholders' equity$1,393,949$1,342,186$1,336,012$1,343,249$1,326,474
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except per share & ratios)At and for the Three Months EndedNine Months Ended
SeptemberJuneMarchDecemberSeptemberSeptemberSeptember
Interest income2024202420242023202320242023
Loans
Taxable$14,513$13,883$13,547$13,438$13,128$41,943$37,969
Tax exempt127124123124122374359
Securities
Taxable1,8711,6101,5931,5261,5075,0744,566
Tax exempt3737373839111132
Total interest income16,54815,65415,30015,12614,79647,50243,026
Interest expense
Deposits5,5685,2085,0904,3984,19415,86610,310
Repurchase agreements & other433634391611335
Federal Home Loan Bank advances3693706137206661,3521,883
Trust preferred securities187187188191189562525
Subordinated debt195194195194195584584
Total interest expense6,3625,9956,1205,5425,26018,47713,337
Net interest income10,1869,6599,1809,5849,53629,02529,689
Provision for credit losses200--(74)(6)200389
Net interest income after provision
for loan losses9,9869,6599,1809,6589,54228,82529,300
Noninterest income
Wealth management fees8828488658388372,5952,694
Customer service fees8708758808448632,6252,559
Gain on sale of mtg. loans & OMSR1,3111,2777817471,2073,3692,862
Mortgage loan servicing fees, net395657635614381,3671,540
Gain on sale of non-mortgage loans201051017710135252
Title insurance revenue4854062663784291,1571,257
Net gain on sales of securities---1,453---
Gain (loss) on sale of assets200--16-2004
Other3163103865173791,0121,022
Total noninterest income4,1234,3863,9515,5314,16312,46012,190
Noninterest expense
Salaries and employee benefits6,0576,0095,3525,6525,49117,41817,125
Net occupancy expense7067077697467642,1822,350
Equipment expense1,0691,0601,0771,0271,0683,2063,051
Data processing fees7587277696806482,2541,979
Professional fees6596157589266232,0322,098
Marketing expense241176197182189614600
Telephone and communication expense128156105132124389369
Postage and delivery expense1458997167100331265
State, local and other taxes208230245285218683664
Employee expense228159178146141565485
Other expenses8047437354261,1152,2822,607
Total noninterest expense11,00310,67110,28210,36910,48131,95631,593
Income before income tax expense3,1063,3742,8494,8203,2249,3299,897
Income tax expense7522614819375371,4941,685
Net income $2,354$3,113$2,368$3,883$2,687$7,835$8,212
Common share data:
Basic earnings per common share$0.35$0.47$0.35$0.58$0.40$1.17$1.20
Diluted earnings per common share$0.35$0.47$0.35$0.57$0.39$1.17$1.18
Average shares outstanding (in thousands):
Basic:6,6606,6926,7156,7486,7916,6896,857
Diluted:6,6756,7006,7236,8516,8786,7046,944
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share & ratios)At and for the Three Months EndedNine Months Ended
SeptemberJuneMarchDecemberSeptemberSeptemberSeptember
SUMMARY OF OPERATIONS2024202420242023202320242023
Net interest income$10,186$9,659$9,180$9,584$9,536$29,025$29,689
Tax-equivalent adjustment444343434312988
Tax-equivalent net interest income10,2309,7029,2239,6279,57929,15429,777
Provision for credit loss200--(74)(6)200389
Noninterest income4,1234,3863,9515,5314,16312,46012,190
Total operating revenue14,30914,04513,13115,11513,69941,48541,879
Noninterest expense11,00310,67110,28210,36910,48131,95631,593
Pre-tax pre-provision income3,3063,3742,8494,7463,2189,52910,286
Net income2,3543,1132,3683,8832,6877,8358,212
PER SHARE INFORMATION:
Basic earnings per share (EPS)0.350.470.350.580.401.171.20
Diluted earnings per share0.350.470.350.570.391.171.18
Common dividends0.1400.1400.1350.1350.1300.4150.385
Book value per common share20.0518.8018.4618.5016.5920.0516.59
Tangible book value per common share (TBV)16.4915.2614.9314.9813.0916.4913.09
Market price per common share20.5614.0013.7815.3513.5020.5613.50
Market price to TBV124.7%91.8%92.3%102.5%103.1%124.7%103.1%
Market price to trailing 12 month EPS11.87.97.98.88.011.88.0
PERFORMANCE RATIOS:
Return on average assets (ROAA)0.68%0.93%0.71%1.17%0.80%0.77%0.81%
Pre-tax pre-provision ROAA0.96%1.01%0.85%1.43%0.96%1.01%1.10%
Return on average equity (ROE)7.32%10.16%7.70%13.23%9.25%8.41%8.72%
Return on average tangible equity8.97%12.59%9.53%16.57%11.62%10.39%10.75%
Efficiency ratio76.78%75.86%78.17%68.44%79.00%76.91%75.28%
Earning asset yield5.16%5.02%4.97%4.89%4.78%5.05%4.61%
Cost of interest bearing liabilities2.53%2.47%2.55%2.33%2.18%2.52%1.85%
Net interest margin3.17%3.10%2.98%3.10%3.08%3.08%3.18%
Tax equivalent effect0.02%0.01%0.01%0.01%0.01%0.01%0.02%
Net interest margin, tax equivalent3.19%3.11%2.99%3.11%3.09%3.09%3.20%
Non interest income/Average assets1.20%1.31%1.19%1.67%1.24%1.23%1.21%
Non interest expense/Average assets3.20%3.18%3.08%3.12%3.13%3.15%3.13%
Net noninterest expense/Average assets-2.00%-1.87%-1.90%-1.46%-1.89%-1.92%-1.92%
ASSET QUALITY RATIOS:
Gross charge-offs29-6651295113
Recoveries2169172725
Net charge-offs27(16)57456888
Nonperforming loans/Total loans0.54%0.47%0.25%0.28%0.34%0.54%0.34%
Nonperforming assets/Loans & OREO0.54%0.52%0.30%0.33%0.40%0.54%0.40%
Nonperforming assets/Total assets0.40%0.39%0.22%0.25%0.30%0.40%0.30%
Allowance for credit loss/Nonperforming loans276.83%329.78%642.69%560.18%474.32%276.83%474.32%
Allowance for credit loss/Total loans1.48%1.55%1.58%1.58%1.60%1.48%1.60%
Net loan charge-offs/Average loans (ann.)0.01%(0.01%)0.02%0.00%0.00%0.01%0.01%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits88.82%90.15%89.14%93.46%91.13%88.82%91.13%
Equity/ Assets9.53%9.35%9.26%9.26%8.47%9.53%8.47%
Tangible equity/Tangible assets7.97%7.72%7.63%7.63%6.81%7.97%6.81%
Common equity tier 1 ratio (Bank)13.53%13.98%13.84%13.42%13.56%13.53%13.56%
END OF PERIOD BALANCES
Total assets1,393,9491,342,1861,336,0121,343,2491,326,4741,393,9491,326,474
Total loans1,029,9551,005,390991,5521,000,212989,0211,029,955989,021
Deposits1,159,5331,115,1881,112,3421,070,2051,085,3191,159,5331,085,319
Shareholders equity132,841125,479123,723124,342112,348132,841112,348
Goodwill and intangibles23,61323,63023,64623,66223,68723,61323,687
Tangible equity109,228101,849100,077100,68088,661109,22888,661
Mortgage servicing portfolio1,406,2731,389,8051,371,7131,366,6671,367,2091,406,2731,367,209
Wealth/Brokerage assets under care557,724525,713525,517501,829478,236557,724478,236
Total assets under care3,357,9463,257,7043,233,2423,211,7453,171,9193,357,9463,171,919
Full-time equivalent employees248249245251252248252
Period end common shares outstanding6,6246,6766,7026,7206,7736,6246,773
Market capitalization (all)136,18993,45892,359103,14791,437136,18991,437
AVERAGE BALANCES
Total assets1,376,8491,342,8471,333,2361,327,4151,339,8701,350,5801,344,467
Total earning assets1,283,4071,246,0991,230,7361,236,1651,239,1451,255,3351,243,094
Total loans1,018,2621,005,018993,310992,337989,0891,005,577982,817
Deposits1,145,9641,120,3671,091,8031,084,9391,095,4141,119,2761,098,593
Shareholders equity128,608122,510123,058117,397116,165124,218125,580
Goodwill and intangibles23,62123,63823,65423,67523,69823,63823,720
Tangible equity104,98798,87299,40493,72292,467100,580101,860
Average basic shares outstanding6,6606,6926,7156,7486,7916,6896,857
Average diluted shares outstanding6,6756,7006,7236,8516,8786,7046,944
SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three and Nine Months Ended Sep. 30, 2024 and 2023
($ in thousands)Three Months Ended Sep. 30, 2024Three Months Ended Sep. 30, 2023
AverageAverageAverageAverage
AssetsBalanceInterestRateBalanceInterestRate
Taxable securities/cash$258,743$1,8712.89%$243,261$1,5072.48%
Nontaxable securities6,402372.31%6,795392.30%
Loans, net1,018,26214,6405.75%989,08913,2505.36%
Total earning assets1,283,40716,5485.16%1,239,14514,7964.78%
Cash and due from banks4,3344,022
Allowance for loan losses(15,601)(15,791)
Premises and equipment20,82022,120
Other assets83,88990,374
Total assets$1,376,849$1,339,870
Liabilities
Savings, MMDA and interest bearing demand$659,879$2,9691.80%$620,092$2,2321.44%
Time deposits264,1882,5993.94%244,2891,9623.21%
Repurchase agreements & other16,240431.06%16,319160.39%
Advances from Federal Home Loan Bank35,0543694.21%55,0736664.84%
Trust preferred securities10,3101877.26%10,3101897.33%
Subordinated debt19,6701953.97%19,6221953.98%
Total interest bearing liabilities1,005,3416,3622.53%965,7055,2602.18%
Non interest bearing demand221,897-231,033-
Total funding1,227,2382.07%1,196,7381.76%
44.20%1
Other liabilities21,00326,967
Total liabilities1,248,2411,223,705
Equity128,608116,165
Total liabilities and equity$1,376,849$1,339,870-
Net interest income$10,186$9,536
Net interest income as a percent of average interest-earning assets - GAAP measure3.17%3.08%
Net interest income as a percent of average interest-earning assets - non GAAP3.19%3.09%
- Computed on a fully tax equivalent (FTE) basis
Nine Months Ended Sep. 30, 2024Nine Months Ended Sep. 30, 2023
AverageAverageAverageAverage
AssetsBalanceInterestRateBalanceInterestRate
Taxable securities/cash$243,335$5,0742.78%$252,908$4,5662.41%
Nontaxable securities6,4231112.30%7,3691322.39%
Loans, net1,005,57742,3175.61%982,81738,3285.20%
Total earning assets1,255,33547,5025.05%1,243,09443,0264.61%
Cash and due from banks4,4304,020
Allowance for loan losses(15,693)(15,374)
Premises and equipment21,02622,500
Other assets85,48290,227
Total assets$1,350,580$1,344,467
Liabilities
Savings, MMDA and interest bearing demand$634,122$8,2701.74%$627,074$5,3671.14%
Time deposits260,0617,5963.89%233,0544,9432.83%
Repurchase agreements & Other14,7081131.02%16,576350.28%
Advances from Federal Home Loan Bank40,4661,3524.45%53,9361,8834.65%
Trust preferred securities10,3105627.27%10,3105256.79%
Subordinated debt19,6585843.96%19,6105843.97%
Total interest bearing liabilities979,32518,4772.52%960,56013,3371.85%
Non interest bearing demand225,0932.05%238,4651.48%
Total funding1,204,4181,199,025
Other liabilities21,94419,862
Total liabilities1,226,3621,218,887
Equity124,218125,580
Total liabilities and equity$1,350,580$1,344,467
Net interest income$29,025$29,689
Net interest income as a percent of average interest-earning assets - GAAP measure3.08%3.18%
Net interest income as a percent of average interest-earning assets - non GAAP3.09%3.20%
- Computed on a fully tax equivalent (FTE) basis
Non-GAAP reconciliationThree Months EndedNine Months Ended
($ in thousands, except per share & ratios)Sep. 30, 2024Sep. 30, 2023Sep. 30, 2024Sep. 30, 2023
Total Operating Revenue$14,309$13,699$41,485$41,879
Adjustment to (deduct)/add OMSR recapture/impairment *4657824639
Adjusted Total Operating Revenue14,77413,77741,73141,918
Income before Income Taxes3,1063,2249,3299,897
Adjustment for OMSR *4657824639
Adjusted Income before Income Taxes3,5713,3029,5759,936
Provision for Income Taxes7525371,4941,685
Adjustment for OMSR **9816528
Adjusted Provision for Income Taxes8505531,5461,693
Net Income2,3542,6877,8358,212
Adjustment for OMSR *3676219431
Adjusted Net Income2,7212,7498,0298,243
Diluted Earnings per Share0.350.391.171.18
Adjustment for OMSR *0.060.010.030.00
Adjusted Diluted Earnings per Share$0.41$0.40$1.20$1.19
Return on Average Assets0.68%0.80%0.77%0.81%
Adjustment for OMSR *0.11%0.02%0.01%0.00%
Adjusted Return on Average Assets0.79%0.82%0.79%0.82%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate
ti?nf=OTI2MTcxNSM2NTQ0NTIyIzUwMDEwNzI0NA==
SB-Financial-Group-Inc-.png
Research Tools
All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board
Product
Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Mobile App 中文
Education
Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation
Company
About GuruFocus Career Contact Us Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program
Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey
Follow Us
download GuruFocus on Apple store download GuruFocus on Google Play
Disclaimers
GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.
© 2004-2024 GuruFocus.com, LLC. All Rights Reserved.