SBFG SB Finanical Group Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) July 22, 2024 (July 18, 2024)

 

SB FINANCIAL GROUP, INC

(Exact name of registrant as specified in its charter)

 

Ohio		001-36785		34-1395608
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

401 Clinton Street, Defiance, OH		43512
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code (419) 783-8950

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading symbol(s)		Name of each exchange on which registererd
Common Shares, No Par Value 6,740,592 Outstanding at July 22, 2024		SBFG		The NASDAQ Stock Market, LLC (NASDAQ Capital Market)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On July 18, 2024, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the second quarter 2024. A copy of the July 18, 2024 news release is furnished as Exhibit 99.1 and is incorporated herein by reference.

 

The information in this Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(a) Not Applicable

 

(b) Not Applicable

 

(c) Not Applicable

 

(d) Exhibits

 

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on July 18, 2024, reporting financial results for the second quarter 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	SB FINANCIAL GROUP, INC.
Dated: July 22, 2024	By:	/s/ Anthony V. Cosentino
		Anthony V. Cosentino
		Chief Financial Officer

 

 

INDEX TO EXHIBITS

 

Current Report on Form 8-K

Dated July 22, 2024

 

SB Financial Group, Inc.

 

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on July 18, 2024, reporting financial results for the second quarter 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

-3-

 

Exhibit 99.1

 

 

 

SB Financial Group Announces Second Quarter 2024 Results

 

DEFIANCE, OH, July 18, 2024 -- SB Financial Group, Inc. (NASDAQ: 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 second quarter ended June 30, 2024.

 

Second Quarter 2024 Highlights compared to the second quarter of the prior year:

 

●

Net income of $3.1 million, up 1.2 percent and in line with the same quarter last year. Diluted Earnings Per Share (“EPS”) increased to $0.47 or 6.8% from $0.44;

 

●

Net interest income totaled $9.7 million, a 1.7 percent decrease from the $9.8 million;

 

●

Loan growth increased to $1.01 billion, up by $20.6 million or 2.1 percent from the $984.8 million;

 

●

Return on Average Assets (“ROAA”) increased to 0.93%, up 2 basis points from the previous year, while Return on Average Equity (“ROAE”) declined slightly to 10.16%, down 16 basis points from 10.32%.

 

Six Months Ended June 30, 2024 Highlights compared to the same period of the prior year:

 

●

Mortgage Banking Revenue increased to $3.4 million, up by 22.8 percent from $2.8 million.

 

Trailing Twelve Months Ended June 30, 2024 Highlights compared to the prior year:

 

●

EPS was $1.78 for the twelve months ended June 2024, an increase of 1.1 percent from the prior twelve months of $1.76.

 

●

Total deposits were $1.12 billion at the end of June 2024, representing an increase of 4.1 percent from $1.07 billion at the end of June 2023.

 

●

Mortgage origination volume was $218.8 million for the trailing twelve months, with the servicing portfolio of $1.39 billion, which increased by 2.7 percent.

  

Earnings Highlights		Three Months Ended												Six Months Ended
($ in thousands, except per share & ratios)		Jun. 2024				Jun. 2023				% Change				Jun. 2024				Jun. 2023				% Change
Operating revenue		$	14,045			$	14,190				-1.0	%		$	27,176			$	28,180				-3.6	%
Interest income			15,654				14,406				8.7	%			30,954				28,230				9.6	%
Interest expense			5,995				4,577				31.0	%			12,115				8,077				50.0	%
Net interest income			9,659				9,829				-1.7	%			18,839				20,153				-6.5	%
Provision for credit losses			-				145				-100.0	%			-				395				0.0	%
Noninterest income			4,386				4,361				0.6	%			8,337				8,027				3.9	%
Noninterest expense			10,671				10,339				3.2	%			20,953				21,112				-0.8	%
Net income			3,113				3,075				1.2	%			5,481				5,525				-0.8	%
Earnings per diluted share			0.47				0.44				6.8	%			0.82				0.79				3.8	%
Return on average assets			0.93	%			0.91	%			2.2	%			0.82	%			0.82	%			0.0	%
Return on average equity			10.16	%			10.32	%			-1.6	%			9.02	%			9.01	%			0.1	%

 

 

“We demonstrated solid execution and financial stability in the quarter ended June 30, 2024,” stated Mark A. Klein, Chairman, President, and CEO. “We maintained a net income of $3.1 million, a testament to our operational resilience and our relentless focus on profitability. Notably, our diluted earnings per share increased by 6.8% to $0.47, reflecting our unwavering commitment to delivering shareholder value amidst economic uncertainties.”

 

“Our loan portfolio expanded to $1.01 billion, an increase of $20.6 million, showcasing our disciplined growth strategy and the strong confidence our clients place in our partnership. Despite ongoing market challenges, our deposit base grew by $44.0 million or 4.1% year-over-year to $1.12 billion, underscoring our margin oversight and the sustained trust of our customers. We continue to maintain a conservative risk profile, with peer leading asset quality and no loan charge-offs,” added Mr. Klein.

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

In the second quarter of 2024, SB Financial Group demonstrated operational resilience with a slight year-over-year decline in operating revenue of only 1.0%, coupled with an increase of 7.0% from the preceding quarter. Despite a 1.7% decrease in net interest income—largely attributable to elevated deposit costs—our financial management mitigated the impact, resulting in a nominal 5 basis point reduction in our net interest margin when compared to the second quarter of 2023.

 

Noninterest income recorded a 0.6% increase over the same quarter last year, fueled by a substantial 20.9% surge in gains from the sale of mortgages and OMSR, alongside a 14.4% increase in mortgage loan servicing fees. Consistent customer service fees further improved our solid revenue base. However, we noted variances in performance across other noninterest income areas, such as wealth management and title insurance services, which saw declines. For the first time in over 2 years, interest expenses decreased on a linked quarter basis, highlighting the stabilization of funding costs.

 

Mortgage Loan Business

 

In the second quarter of 2024, SB Financial Group’s mortgage loan business recorded a 14.9% increase in loan originations, reaching $75.1 million from $65.4 million in the corresponding period last year. This notable growth underscores some strengthening in the housing market and hopefully signals broader positive economic trends.

 

Mortgage sales demonstrated significant expansion this quarter, reaching $55.8 million, or 74% of total originations. This higher level of sales volume, marked a 16.5% year-over-year increase from $47.9 million, underscores our successful market penetration and strategic positioning, particularly in a competitive lending environment. Our mortgage banking net revenue saw an increase to $1.8 million, up 18.8% from the previous year, reflecting our strong operational efficiency. Additionally, the mortgage servicing portfolio expanded by 2.7%, reaching $1.39 billion, which reinforces our dedication to sustainable growth and enhanced servicing capabilities.

 

Mr. Klein, Chairman, President, and CEO of SB Financial Group, 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, most notably the expansion of our origination teams, have positioned us to capitalize on market opportunities and maintain our growth momentum.”

 

Mortgage Banking ($ in thousands)		Jun. 2024				Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Prior Year Growth
Mortgage originations		$	75,110			$	42,912			$	39,566			$	61,200			$	65,387			$	9,723
Mortgage sales			55,835				36,623				33,362				54,085				47,933				7,902
Mortgage servicing portfolio			1,389,805				1,371,713				1,366,667				1,367,209				1,353,904				35,901
Mortgage servicing rights			14,548				14,191				13,906				13,893				13,723				825
Revenue
Loan servicing fees			862				855				855				850				844				18
OMSR amortization			(335	)			(273	)			(282	)			(334	)			(334	)			(1	)
Net administrative fees			527				582				573				516				510				17
OMSR valuation adjustment			38				181				(12	)			(78	)			(16	)			54
Net loan servicing fees			565				763				561				438				494				71
Gain on sale of mortgages			1,277				781				747				1,207				1,056				221
Mortgage banking revenue, net		$	1,842			$	1,544			$	1,308			$	1,645			$	1,550			$	292

 

 

Noninterest Income and Noninterest Expense

 

For the second quarter of 2024, noninterest income at SB Financial Group increased slightly to $4.4 million compared to the prior year quarter, marking a modest increase of 0.6%. This growth is primarily attributable to strategic initiatives, including enhanced gain-on-sale yields from mortgage loans and higher recapture of servicing rights, which significantly contributed to our financial performance. Additionally, customer service fees rose marginally, reinforcing our attention in this area. Noninterest expenses for the second quarter were reported at $10.7 million, reflecting a 3.2% increase from the previous year’s $10.3 million, as higher commission costs from mortgage volume drove compensation higher.

 

Noninterest Income/Noninterest Expense ($ in thousands, except ratios)		Jun. 2024				Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Prior Year Growth
Noninterest Income (NII)		$	4,386			$	3,951			$	5,531			$	4,163			$	4,361			$	25
NII / Total Revenue			31.5	%			30.1	%			36.6	%			30.4	%			30.7	%			0.8	%
NII / Average Assets			1.3	%			1.2	%			1.7	%			1.2	%			1.3	%			0.0	%
Total Revenue Growth			-0.6	%			-6.1	%			3.4	%			-5.3	%			-0.5	%			-0.6	%
Noninterest Expense (NIE)		$	10,671			$	10,282			$	10,369			$	10,481			$	10,339			$	332
Efficiency Ratio			75.9	%			78.2	%			68.4	%			79.0	%			72.7	%			3.2	%
NIE / Average Assets			3.2	%			3.1	%			3.1	%			3.1	%			3.1	%			0.1	%
Net Noninterest Expense/Avg. Assets			-1.9	%			-1.9	%			-1.4	%			-1.9	%			-1.8	%			-0.1	%
Total Expense Growth			3.2	%			-4.6	%			1.0	%			0.9	%			-4.3	%			3.2	%

 

Mr. Klein commented on the financial performance, stating, “Our noninterest income has shown consistent resilience, supported by significant gains from mortgage and mortgage servicing fees, reflecting our agility and expertise in capitalizing on favorable market conditions. Regarding expenses, the increase this quarter is driven by revenue generation activities. Our focus remains on optimizing our cost structure and ensuring operational efficiency, which is paramount in delivering sustained value to our stakeholders.”

 

Balance Sheet

 

As of June 30, 2024, SB Financial Group has continued to demonstrate financial stability, with total assets reporting a marginal increase to $1.34 billion, up by 0.06% year-over-year. Our loan portfolio again crossed the $1 billion threshold and now stands at $1.01 billion, marking an increase of $20.6 million or 2.1% compared to the previous year. This growth is indicative of our effective lending practices in a dynamic economic landscape. Furthermore, an increase in cash and cash equivalents has provided enhanced liquidity, further strengthening our financial position.

 

Shareholders’ equity experienced a slight quarterly expansion of 1.4% to $125.5 million compared to the linked quarter and also showed positive growth of 6.6% on a year-over-year basis. This growth underscores our consistent efforts to enhance shareholder value amidst fluctuating market conditions.

 

“In 2024, we have maintained a disciplined and proactive approach to our growth and capital management, aligning closely with our 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. Moreover, the year-over-year increase in shareholders’ equity highlights our continued commitment to driving shareholder value. We remain poised to leverage any opportunities that will fortify our financial position and ensure long-term prosperity for our stakeholders,” commented Mr. Klein.

 

  

Loan Balances ($ in thousands, except ratios)		Jun. 2024				Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Annual Growth
Commercial		$	123,287			$	120,016			$	126,716			$	120,325			$	123,226			$	61
% of Total			12.3	%			12.1	%			12.7	%			12.2	%			12.5	%			0.0	%
Commercial RE			434,967				429,362				424,041				421,736				417,412				17,555
% of Total			43.3	%			43.3	%			42.4	%			42.6	%			42.4	%			4.2	%
Agriculture			64,329				62,365				65,659				60,928				58,222				6,107
% of Total			6.4	%			6.3	%			6.6	%			6.2	%			5.9	%			10.5	%
Residential RE			316,233				314,668				318,123				320,306				321,365				(5,132	)
% of Total			31.5	%			31.7	%			31.8	%			32.4	%			32.6	%			-1.6	%
Consumer & Other			66,574				65,141				65,673				65,726				64,599				1,975
% of Total			6.6	%			6.6	%			6.6	%			6.6	%			6.6	%			3.1	%
Total Loans		$	1,005,390			$	991,552			$	1,000,212			$	989,021			$	984,824			$	20,566
Total Growth Percentage																							2.1	%

 

Deposit Balances ($ in thousands, except ratios)		Jun. 2024				Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Annual Growth
Non-Int DDA		$	208,244			$	219,395			$	228,713			$	224,182			$	218,411			$	(10,167	)
% of Total			18.7	%			19.7	%			21.4	%			20.7	%			20.4	%			-4.7	%
Interest DDA			190,857				169,171				166,413				174,729				170,282				20,575
% of Total			17.1	%			15.2	%			15.5	%			16.1	%			15.9	%			12.1	%
Savings			231,855				244,157				216,965				226,077				225,065				6,790
% of Total			20.8	%			21.9	%			20.3	%			20.8	%			21.0	%			3.0	%
Money Market			225,650				221,362				202,605				216,565				217,681				7,969
% of Total			20.2	%			19.9	%			18.9	%			20.0	%			20.3	%			3.7	%
Time Deposits			258,582				258,257				255,509				243,766				239,717				18,865
% of Total			23.2	%			23.2	%			23.9	%			22.5	%			22.4	%			7.9	%
Total Deposits		$	1,115,188			$	1,112,342			$	1,070,205			$	1,085,319			$	1,071,156			$	44,032
Total Growth Percentage																							4.1	%

 

Asset Quality

 

SB Financial Group’s dedication to maintaining exceptional asset quality remains evident through the second quarter of 2024. As of June 2024, nonperforming loans constituted 0.47% of total loans, reflecting an increase from 0.25% in the previous quarter. Despite the slight increase in nonperforming loans to total loans, our criticized loan categories are down nearly 23% compared to the prior year and our reserve coverage remains above 325%.

 

Moreover, the net loan charge-offs to average loans ratio, annualized at -0.01%, highlights our effective management of loan repayments and the high quality of our credit portfolio. These metrics reinforce our reputation for rigorous risk management and credit excellence.

 

Mark A. Klein, Chairman, President, and CEO of SB Financial, commented, “Our second-quarter performance underscores our unwavering commitment to asset quality. Despite a slight increase in nonperforming loans, our substantial allowance for credit losses and effective loan management practices reflects our measured approach to risk management. We are steadfast in ensuring the strength and stability of our loan portfolio, even in the face of economic fluctuations.”

 

 

Nonperforming Assets ($ in thousands, except ratios)		Jun. 2024				Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Annual Change
Commercial & Agriculture		$	2,781			$	897			$	748			$	717			$	170			$	2,611
% of Total Com./Ag. loans			1.48	%			0.49	%			0.39	%			0.40	%			0.09	%			1535.9	%
Commercial RE			475				49				168				222				192				283
% of Total CRE loans			0.11	%			0.01	%			0.04	%			0.05	%			0.05	%			147.4	%
Residential RE			1,247				1,295				1,690				2,182				2,266				(1,019	)
% of Total Res. RE loans			0.39	%			0.41	%			0.53	%			0.68	%			0.71	%			-45.0	%
Consumer & Other			231				193				212				208				282				(51	)
% of Total Con./Oth. loans			0.35	%			0.30	%			0.32	%			0.32	%			0.44	%			-18.1	%
Total Nonaccruing Loans			4,734				2,434				2,818				3,329				2,910				1,824
% of Total loans			0.47	%			0.25	%			0.28	%			0.34	%			0.30	%			62.7	%
Foreclosed Assets and Other Assets			510				510				511				629				625				(115	)
Total Change (%)																							-18.4	%
Total Nonperforming Assets		$	5,244			$	2,944			$	3,329			$	3,958			$	3,535			$	1,709
% of Total assets			0.39	%			0.22	%			0.25	%			0.30	%			0.26	%			48.35	%

 

Webcast and Conference Call

 

The Company will hold the second quarter 2024 earnings conference call and webcast on July 19, 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 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

Mark.Klein@YourStateBank.com

 

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		June				March				December				September				June
($ in thousands)		2024				2024				2023				2023				2023
ASSETS
Cash and due from banks		$	21,983			$	26,602			$	22,965			$	19,049			$	20,993
Interest bearing time deposits			2,417				2,417				1,535				1,180				1,180
Available-for-sale securities			208,156				213,239				219,708				212,768				227,996
Loans held for sale			7,864				4,730				2,525				3,206				5,684
Loans, net of unearned income			1,005,390				991,552				1,000,212				989,021				984,824
Allowance for credit losses			(15,612	)			(15,643	)			(15,786	)			(15,790	)			(15,795	)
Premises and equipment, net			20,860				20,985				21,378				21,934				22,230
Federal Reserve and FHLB Stock, at cost			5,204				6,512				7,279				6,261				7,634
Foreclosed assets and other assets			510				510				511				629				625
Interest receivable			4,821				3,706				4,657				6,673				4,079
Goodwill			23,239				23,239				23,239				23,239				23,239
Cash value of life insurance			30,294				30,103				29,121				29,291				29,183
Mortgage servicing rights			14,548				14,191				13,906				13,893				13,723
Other assets			12,512				13,869				11,999				15,120				15,840
Total assets		$	1,342,186			$	1,336,012			$	1,343,249			$	1,326,474			$	1,341,435
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand		$	208,244			$	219,395			$	228,713			$	224,182			$	218,411
Interest bearing demand			190,857				169,171				166,413				174,729				170,282
Savings			231,855				244,157				216,965				226,077				225,065
Money market			225,650				221,362				202,605				216,565				217,681
Time deposits			258,582				258,257				255,509				243,766				239,717
Total deposits			1,115,188				1,112,342				1,070,205				1,085,319				1,071,156
Short-term borrowings			15,178				12,916				13,387				16,519				21,118
Federal Home Loan Bank advances			35,000				35,000				83,600				59,500				81,300
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Subordinated debt net of issuance costs			19,666				19,654				19,642				19,630				19,618
Interest payable			2,944				2,772				2,443				2,216				1,866
Other liabilities			18,421				19,295				19,320				20,632				18,401
Total liabilities			1,216,707				1,212,289				1,218,907				1,214,126				1,223,769
Shareholders’ Equity
Common stock			61,319				61,319				61,319				61,319				61,319
Additional paid-in capital			15,195				14,978				15,124				15,037				15,154
Retained earnings			112,104				109,938				108,486				105,521				103,725
Accumulated other comprehensive loss			(31,801	)			(31,547	)			(29,831	)			(39,517	)			(32,894	)
Treasury stock			(31,338	)			(30,965	)			(30,756	)			(30,012	)			(29,638	)
Total shareholders’ equity			125,479				123,723				124,342				112,348				117,666
Total liabilities and shareholders’ equity		$	1,342,186			$	1,336,012			$	1,343,249			$	1,326,474			$	1,341,435

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
($ in thousands, except per share & ratios)		2024				2024				2023				2023				2023				2024				2023
Interest income
Loans
Taxable		$	13,883			$	13,547			$	13,438			$	13,128			$	12,715			$	27,430			$	24,841
Tax exempt			124				123				124				122				121				247				237
Securities
Taxable			1,610				1,593				1,526				1,507				1,524				3,203				3,059
Tax exempt			37				37				38				39				46				74				93
Total interest income			15,654				15,300				15,126				14,796				14,406				30,954				28,230
Interest expense
Deposits			5,208				5,090				4,398				4,194				3,538				10,298				6,116
Repurchase agreements & other			36				34				39				16				9				70				19
Federal Home Loan Bank advances			370				613				720				666				664				983				1,217
Trust preferred securities			187				188				191				189				172				375				336
Subordinated debt			194				195				194				195				194				389				389
Total interest expense			5,995				6,120				5,542				5,260				4,577				12,115				8,077
Net interest income			9,659				9,180				9,584				9,536				9,829				18,839				20,153
Provision for credit losses			-				-				(74	)			(6	)			145				-				395
Net interest income after provision for loan losses			9,659				9,180				9,658				9,542				9,684				18,839				19,758
Noninterest income
Wealth management fees			848				865				838				837				940				1,713				1,857
Customer service fees			875				880				844				863				871				1,755				1,696
Gain on sale of mtg. loans & OMSR			1,277				781				747				1,207				1,056				2,058				1,655
Mortgage loan servicing fees, net			565				763				561				438				494				1,328				1,102
Gain on sale of non-mortgage loans			105				10				177				10				218				115				242
Title insurance revenue			406				266				378				429				455				672				828
Net gain on sales of securities			-				-				1,453				-				-				-				-
Gain (loss) on sale of assets			-				-				16				-				15				-				4
Other			310				386				517				379				312				696				643
Total noninterest income			4,386				3,951				5,531				4,163				4,361				8,337				8,027
Noninterest expense
Salaries and employee benefits			6,009				5,352				5,652				5,491				5,721				11,361				11,634
Net occupancy expense			707				769				746				764				802				1,476				1,586
Equipment expense			1,060				1,077				1,027				1,068				1,002				2,137				1,983
Data processing fees			727				769				680				648				685				1,496				1,331
Professional fees			615				758				926				623				612				1,373				1,475
Marketing expense			176				197				182				189				213				373				411
Telephone and communication expense			156				105				132				124				124				261				245
Postage and delivery expense			89				97				167				100				78				186				165
State, local and other taxes			230				245				285				218				218				475				446
Employee expense			159				178				146				141				156				337				344
Other expenses			743				735				426				1,115				728				1,478				1,492
Total noninterest expense			10,671				10,282				10,369				10,481				10,339				20,953				21,112
Income before income tax expense			3,374				2,849				4,820				3,224				3,706				6,223				6,673
Income tax expense			261				481				937				537				631				742				1,148
Net income		$	3,113			$	2,368			$	3,883			$	2,687			$	3,075			$	5,481			$	5,525
Common share data:
Basic earnings per common share		$	0.47			$	0.35			$	0.58			$	0.40			$	0.45			$	0.82			$	0.80
Diluted earnings per common share		$	0.47			$	0.35			$	0.57			$	0.39			$	0.44			$	0.82			$	0.79
Average shares outstanding (in thousands):
Basic:			6,692				6,715				6,748				6,791				6,847				6,703				6,890
Diluted:			6,700				6,723				6,851				6,878				6,910				6,715				6,976

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

		At and for the Three Months Ended																				Six Months Ended
		June				March				December				September				June				June				June
($ in thousands, except per share & ratios)		2024				2024				2023				2023				2023				2024				2023
SUMMARY OF OPERATIONS
Net interest income		$	9,659			$	9,180			$	9,584			$	9,536			$	9,829			$	18,839			$	20,153
Tax-equivalent adjustment			43				43				43				43				44				85				88
Tax-equivalent net interest income			9,702				9,223				9,627				9,579				9,873				18,924				20,241
Provision for credit loss			-				-				(74	)			(6	)			145				-				395
Noninterest income			4,386				3,951				5,531				4,163				4,361				8,337				8,027
Total operating revenue			14,045				13,131				15,115				13,699				14,190				27,176				28,180
Noninterest expense			10,671				10,282				10,369				10,481				10,339				20,953				21,112
Pre-tax pre-provision income			3,374				2,849				4,746				3,218				3,851				6,223				7,068
Net income			3,113				2,368				3,883				2,687				3,075				5,481				5,525
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.47				0.35				0.58				0.40				0.45				0.82				0.80
Diluted earnings per share			0.47				0.35				0.57				0.39				0.44				0.82				0.79
Common dividends			0.140				0.135				0.135				0.130				0.130				0.275				0.255
Book value per common share			18.80				18.46				18.50				16.59				17.30				18.80				17.30
Tangible book value per common share (TBV)			15.26				14.93				14.98				13.09				13.81				15.26				13.81
Market price per common share			14.00				13.78				15.35				13.50				12.62				14.00				12.62
Market price to TBV			91.8	%			92.3	%			102.5	%			103.1	%			91.4	%			91.8	%			91.4	%
Market price to trailing 12 month EPS			7.9				7.9				8.8				8.0				7.1				7.9				7.1
PERFORMANCE RATIOS:
Return on average assets (ROAA)			0.93	%			0.71	%			1.17	%			0.80	%			0.91	%			0.82	%			0.82	%
Pre-tax pre-provision ROAA			1.01	%			0.85	%			1.43	%			0.96	%			1.14	%			1.00	%			1.14	%
Return on average equity (ROE)			10.16	%			7.70	%			13.23	%			9.25	%			10.32	%			9.02	%			9.01	%
Return on average tangible equity			12.59	%			9.53	%			16.57	%			11.62	%			12.89	%			11.21	%			11.18	%
Efficiency ratio			75.86	%			78.17	%			68.44	%			79.00	%			72.71	%			76.98	%			74.77	%
Earning asset yield			5.02	%			4.97	%			4.89	%			4.78	%			4.61	%			4.96	%			4.54	%
Cost of interest bearing liabilities			2.47	%			2.55	%			2.33	%			2.18	%			1.90	%			2.51	%			1.69	%
Net interest margin			3.10	%			2.98	%			3.10	%			3.08	%			3.15	%			3.02	%			3.24	%
Tax equivalent effect			0.01	%			0.01	%			0.01	%			0.01	%			0.01	%			0.02	%			0.02	%
Net interest margin, tax equivalent			3.11	%			2.99	%			3.11	%			3.09	%			3.16	%			3.04	%			3.26	%
Non interest income/Average assets			1.31	%			1.19	%			1.67	%			1.24	%			1.30	%			1.25	%			1.20	%
Non interest expense/Average assets			3.18	%			3.08	%			3.12	%			3.13	%			3.07	%			3.13	%			3.15	%
Net noninterest expense/Average assets			-1.87	%			-1.90	%			-1.46	%			-1.89	%			-1.78	%			-1.89	%			-1.95	%
ASSET QUALITY RATIOS:
Gross charge-offs			-				66				5				12				32				66				101
Recoveries			16				9				1				7				10				25				18
Net charge-offs			(16	)			57				4				5				22				41				83
Nonperforming loans/Total loans			0.47	%			0.25	%			0.28	%			0.34	%			0.30	%			0.47	%			0.30	%
Nonperforming assets/Loans & OREO			0.52	%			0.30	%			0.33	%			0.40	%			0.36	%			0.52	%			0.36	%
Nonperforming assets/Total assets			0.39	%			0.22	%			0.25	%			0.30	%			0.26	%			0.39	%			0.26	%
Allowance for credit loss/Nonperforming loans			329.78	%			642.69	%			560.18	%			474.32	%			542.78	%			329.78	%			542.78	%
Allowance for credit loss/Total loans			1.55	%			1.58	%			1.58	%			1.60	%			1.60	%			1.55	%			1.60	%
Net loan charge-offs/Average loans (ann.)			(0.01	)%			0.02	%			0.00	%			0.00	%			0.01	%			0.01	%			0.02	%
CAPITAL & LIQUIDITY RATIOS:
Loans/Deposits			90.15	%			89.14	%			93.46	%			91.13	%			91.94	%			90.15	%			91.94	%
Equity/Assets			9.35	%			9.26	%			9.26	%			8.47	%			8.77	%			9.35	%			8.77	%
Tangible equity/Tangible assets			7.72	%			7.63	%			7.63	%			6.81	%			7.13	%			7.72	%			7.13	%
Common equity tier 1 ratio (Bank)			13.89	%			13.84	%			13.42	%			13.56	%			13.18	%			13.89	%			13.18	%
END OF PERIOD BALANCES
Total assets			1,342,186				1,336,012				1,343,249				1,326,474				1,341,435				1,342,186				1,341,435
Total loans			1,005,390				991,552				1,000,212				989,021				984,824				1,005,390				984,824
Deposits			1,115,188				1,112,342				1,070,205				1,085,319				1,071,156				1,115,188				1,071,156
Shareholders equity			125,479				123,723				124,342				112,348				117,666				125,479				117,666
Goodwill and intangibles			23,630				23,646				23,662				23,687				23,710				23,630				23,710
Tangible equity			101,849				100,077				100,680				88,661				93,956				101,849				93,956
Mortgage servicing portfolio			1,389,805				1,371,713				1,366,667				1,367,209				1,353,904				1,389,805				1,353,904
Wealth/Brokerage assets under care			525,713				525,517				501,829				478,236				499,255				525,713				499,255
Total assets under care			3,257,704				3,233,242				3,211,745				3,171,919				3,194,594				3,257,704				3,194,594
Full-time equivalent employees			249				245				251				252				253				249				253
Period end common shares outstanding			6,676				6,702				6,720				6,773				6,803				6,676				6,803
Market capitalization (all)			93,458				92,359				103,147				91,437				85,857				93,458				85,857
AVERAGE BALANCES
Total assets			1,342,847				1,333,236				1,327,415				1,339,870				1,346,010				1,337,244				1,341,918
Total earning assets			1,246,099				1,230,736				1,236,165				1,239,145				1,248,813				1,246,956				1,243,540
Total loans			1,005,018				993,310				992,337				989,089				988,348				999,164				979,629
Deposits			1,120,367				1,091,803				1,084,939				1,095,414				1,100,344				1,106,633				1,098,647
Shareholders equity			122,510				123,058				117,397				116,165				119,177				121,474				122,601
Goodwill and intangibles			23,638				23,654				23,675				23,698				23,721				23,646				23,732
Tangible equity			98,872				99,404				93,722				92,467				95,456				97,828				98,869
Average basic shares outstanding			6,692				6,715				6,748				6,791				6,847				6,703				6,890
Average diluted shares outstanding			6,700				6,723				6,851				6,878				6,910				6,715				6,976

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three Months Ended June 30, 2024 and 2023

 

		Three Months Ended June 30, 2024												Three Months Ended June 30, 2023
		Average								Average				Average								Average
($ in thousands)		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities/cash		$	236,320			$	1,610				2.73	%		$	252,899			$	1,524				2.41	%
Nontaxable securities			4,761				37				3.11	%			7,566				46				2.43	%
Loans, net			1,005,018				14,007				5.57	%			988,348				12,836				5.19	%
Total earning assets			1,246,099				15,654				5.02	%			1,248,813				14,406				4.61	%
Cash and due from banks			4,448												3,952
Allowance for loan losses			(15,647	)											(15,556	)
Premises and equipment			20,978												22,529
Other assets			86,969												86,272
Total assets		$	1,342,847											$	1,346,010
Liabilities
Savings, MMDA and interest bearing demand		$	637,561			$	2,776				1.74	%		$	621,999			$	1,850				1.19	%
Time deposits			257,359				2,432				3.78	%			239,532				1,688				2.82	%
Repurchase agreements & other			12,050				36				1.20	%			15,064				9				0.24	%
Advances from Federal Home Loan Bank			35,374				370				4.18	%			57,495				664				4.62	%
Trust preferred securities			10,310				187				7.26	%			10,310				172				6.67	%
Subordinated debt			19,658				194				3.95	%			19,610				194				3.96	%
Total interest bearing liabilities			972,312				5,995				2.47	%			964,010				4,577				1.90	%
Non interest bearing demand			225,447				-								238,813				-
Total funding			1,197,759								2.00	%			1,202,823								1.52	%
Other liabilities			22,578												20,301
Total liabilities			1,220,337												1,223,124
Equity			122,510												122,886
Total liabilities and equity		$	1,342,847											$	1,346,010				-
Net interest income						$	9,659											$	9,829
Net interest income as a percent of average interest-earning assets - GAAP measure											3.10	%											3.15	%
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis											3.11	%											3.16	%

 

 

		Six Months Ended June 30, 2024												Six Months Ended June 30, 2023
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities/cash		$	243,032			$	3,203				2.64	%		$	256,250			$	3,059				2.39	%
Nontaxable securities			4,760				74				3.11	%			7,661				93				2.43	%
Loans, net			999,164				27,677				5.54	%			979,629				25,078				5.12	%
Total earning assets			1,246,956				30,954				4.96	%			1,243,540				28,230				4.54	%
Cash and due from banks			4,479												4,019
Allowance for loan losses			(15,739	)											(15,162	)
Premises and equipment			21,130												22,692
Other assets			80,418												86,829
Total assets		$	1,337,244											$	1,341,918
Liabilities
Savings, MMDA and interest bearing demand		$	621,950			$	5,301				1.70	%		$	629,061			$	3,135				1.00	%
Time deposits			257,975				4,997				3.87	%			227,343				2,981				2.62	%
Repurchase agreements & Other			14,021				70				1.00	%			16,832				19				0.23	%
Advances from Federal Home Loan Bank			43,202				983				4.55	%			53,359				1,217				4.56	%
Trust preferred securities			10,310				375				7.27	%			10,310				336				6.52	%
Subordinated debt			19,652				389				3.96	%			19,604				389				3.97	%
Total interest bearing liabilities			967,110				12,115				2.51	%			956,509				8,077				1.69	%
Non interest bearing demand			226,708								2.03	%			242,243								1.35	%
Total funding			1,193,818												1,198,752
Other liabilities			27,863												20,565
Total liabilities			1,221,681												1,219,317
Equity			121,474												122,601
Total liabilities and equity		$	1,343,155											$	1,341,918
Net interest income						$	18,839											$	20,153
Net interest income as a percent of average interest-earning assets - GAAP measure											3.02	%											3.24	%
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis											3.04	%											3.26	%

 

 

		Three Months Ended								Six Months Ended
Non-GAAP reconciliation ($ in thousands, except per share & ratios)		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Total Operating Revenue		$	14,045			$	14,190			$	27,176			$	28,180
Adjustment to (deduct)/add OMSR recapture/impairment *			(38	)			16				(219	)			(39	)
Adjusted Total Operating Revenue			14,007				14,206				26,957				28,141
Income before Income Taxes			3,374				3,706				6,223				6,673
Adjustment for OMSR *			(38	)			16				(219	)			(39	)
Adjusted Income before Income Taxes			3,336				3,722				6,004				6,634
Provision for Income Taxes			261				631				742				1,148
Adjustment for OMSR **			(8	)			3				(46	)			(8	)
Adjusted Provision for Income Taxes			253				634				696				1,140
Net Income			3,113				3,075				5,481				5,525
Adjustment for OMSR *			(30	)			13				(173	)			(31	)
Adjusted Net Income			3,083				3,088				5,308				5,494
Diluted Earnings per Share			0.47				0.44				0.82				0.79
Adjustment for OMSR *			(0.01	)			0.01				(0.03	)			(0.00	)
Adjusted Diluted Earnings per Share		$	0.46			$	0.45			$	0.79			$	0.79
Return on Average Assets			0.93	%			0.91	%			0.82	%			0.82	%
Adjustment for OMSR *			-0.01	%			0.00	%			-0.01	%			0.00	%
Adjusted Return on Average Assets			0.92	%			0.92	%			0.81	%			0.82	%

 

*

valuation adjustment to the Company’s mortgage servicing rights

 

**

tax effect is calculated using a 21% statutory federal corporate income tax rate

 

 

12

 

 

v3.24.2

Cover	Jul. 18, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 18, 2024
Entity File Number	001-36785
Entity Registrant Name	SB FINANCIAL GROUP, INC
Entity Central Index Key	0000767405
Entity Tax Identification Number	34-1395608
Entity Incorporation, State or Country Code	OH
Entity Address, Address Line One	401 Clinton Street
Entity Address, City or Town	Defiance
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43512
City Area Code	419
Local Phone Number	783-8950
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, No Par Value 6,740,592 Outstanding at July 22, 2024
Trading Symbol	SBFG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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