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

SB Financial Group (NASDAQ:SBFG) issued its quarterly earnings data on Thursday. The financial services provider reported $0.63 EPS for the quarter, beating the consensus estimate of $0.62 by $0.01, Zacks reports. The firm had revenue of $18.03 million during the quarter, compared to the consensus estimate of $12.80 million. SB Financial Group had a net margin of 17.17% and a return on equity of 11.47%.

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 Up 0.3%

SBFG stock opened at $30.30 on Friday. SB Financial Group has a fifty-two week low of $18.16 and a fifty-two week high of $32.93. The business’s 50-day moving average is $28.96 and its two-hundred day moving average is $25.59. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.94 and a current ratio of 0.95. The company has a market cap of $189.38 million, a price-to-earnings ratio of 11.35 and a beta of 0.19.

Analysts Set New Price Targets

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

SB Financial Group Company Profile

SB Financial Group, Inc is a financial 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, businesses and organizations.

The State Bank and Trust Company offers deposit accounts, commercial and consumer lending, residential and commercial real estate financing, treasury management and other traditional banking products. The company also provides trust, investment management and wealth management services, along with mortgage banking and related financial services.

SB Financial Group serves communities in northwestern Ohio and northeastern Indiana through its banking offices and digital channels.