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) January 28, 2025 (January 23, 2025)

 

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 6,524,769 Outstanding at January 28, 2025		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 January 23, 2025, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the fourth quarter 2024. A copy of the January 23, 2025 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 January 23, 2025, reporting financial results for the fourth 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: January 28, 2025	By:	/s/ Anthony V. Cosentino
		Anthony V. Cosentino
		Chief Financial Officer

 

 

INDEX TO EXHIBITS

 

Current Report on Form 8-K

Dated January 28, 2025

 

SB Financial Group, Inc.

 

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on January 23, 2025, reporting financial results for the fourth quarter 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

Exhibit 99.1

 

 

SB Financial Group Announces Fourth Quarter 2024 Results

 

DEFIANCE, OH, January 23, 2025 -- 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 fourth quarter ended December 31, 2024.

 

Fourth Quarter 2024 Highlights compared to the fourth quarter of the prior year:

 

●

Net income of $3.6 million, which is down 6.4 percent with Diluted Earnings Per Share (“EPS”) of $0.55. When adjusted for Originated Mortgage Servings Rights (“OMSR”) and the Visa B share sale in the prior year, diluted EPS would be up $0.07 or 16.7 percent.

 

●

Interest income of $16.8 million increased by 11.4 percent from $15.1 million reported in the prior year.

 

●

Loan growth of $46.5 million, or 4.7 percent from the prior-year quarter, and marks the third consecutive quarter of sequential expanding loan growth, year over year.

 

●

Tangible book value per shared ended the quarter at $16.00 up $1.02 per share or 6.8 percent from the prior year.

 

Twelve Months Ended December 31, 2024, highlights Over the Prior Year include:

 

●

Net income decreased slightly to $11.5 million, a 5.2 percent decline from the prior year’s $12.1 million, and diluted EPS was $1.72, down 1.9 percent from $1.75. Adjusted EPS was up 4.2 percent compared to the prior year.

 

●

Deposits increased by $82.4 million, or 7.7 percent to $1.15 billion.

 

●

Total interest income of $64.3 million increased by $6.2 million, or 10.7 percent compared to the $58.2 million reported for the previous twelve months, while net interest income improved slightly to $39.9 million, or 1.7 percent.

 

Earnings Highlights		Three Months Ended												Twelve Months Ended
($ in thousands, except per share & ratios)		Dec. 2024				Dec. 2023				% Change				Dec. 2024				Dec. 2023				% Change
Operating revenue		$	15,454			$	15,115				2.2	%		$	56,939			$	56,994				-0.1	%
Interest income			16,847				15,126				11.4	%			64,349				58,152				10.7	%
Interest expense			5,950				5,542				7.4	%			24,427				18,879				29.4	%
Net interest income			10,897				9,584				13.7	%			39,922				39,273				1.7	%
Provision (recovery) for credit losses			(76	)			(74	)			-2.7	%			124				315				-60.6	%
Noninterest income			4,557				5,531				-17.6	%			17,017				17,721				-4.0	%
Noninterest expense			11,003				10,369				6.1	%			42,959				41,962				2.4	%
Net income			3,635				3,883				-6.4	%			11,470				12,095				-5.2	%
Earnings per diluted share			0.55				0.57				-3.5	%			1.72				1.75				-1.7	%
Return on average assets			1.04	%			1.17	%			-11.1	%			0.84	%			0.91	%			-7.7	%
Return on average equity			11.13	%			13.23	%			-15.9	%			9.19	%			10.22	%			-10.1	%

 

“Our fourth-quarter and full-year 2024 results underscore our ability to navigate challenges while delivering growth in key areas,” said Mark A. Klein, Chairman, President, and CEO. “Net income for the quarter was $3.6 million, a 54.4 percent increase from the linked quarter. Diluted EPS for the quarter was $0.55, with full-year diluted EPS reaching $1.72.

 

“In addition to our financial results, we are pleased that we were able to close on the Marblehead acquisition earlier this month. Their presence will add substantial liquidity via their low-cost deposit base and will expand our market presence in Northern Ohio.”

 

 

Interest income for the quarter grew by 11.4 percent to $16.8 million, driven by strong loan performance. Loans increased by $46.5 million, compared to the prior year, and by $16.8 million from the linked quarter. Deposits also rose by $82.4 million, or 7.7 percent, to $1.15 billion, a testament to the trust our clients place in us. Tangible book value per share climbed by 6.8 percent to $16.00, underscoring our commitment to delivering shareholder value.

 

We achieved $64.3 million in total interest income for the year, a 10.7 percent increase over 2023, which partially offset a slight decline in net income to $11.5 million. These results highlight our disciplined approach to growth, operational efficiency, and long-term value creation for our stakeholders. As we move into 2025, we remain focused on leveraging our momentum and strengthening our financial position.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

In the fourth quarter of 2024, total operating revenue increased to $15.5 million, a 2.2 percent rise from $15.1 million in the prior year and an 8.0 percent increase from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $10.9 million, a strong 13.7 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.5 million to $15.0 million. However, rising deposit costs contributed to a 7.4 percent increase in total interest expense, partially offsetting the gains in interest income. Despite this, the net interest margin expanded by 24 basis points year-over-year to 3.35 percent, reflecting the continued strength of our interest-earning assets and disciplined funding cost management.

 

Noninterest income for the quarter declined by 17.6 percent year-over-year to $4.6 million due to the Visa B share sale recorded in the prior year quarter. However, it improved by 10.5 percent compared to the linked quarter, highlighting recovery in key areas. Gains on the sale of mortgage loans and OMSR increased by $448,000 year over year to $1.2 million, while wealth management fees and title insurance revenue rose by $78,000 and $100,000, respectively. Moving forward, we remain focused on maintaining a balanced approach to driving revenue growth and managing costs to deliver consistent shareholder value.

 

Mortgage Loan Business

 

“Our mortgage banking operations delivered another quarter of strong results, reflecting our strategic focus on origination growth, portfolio expansion, and servicing efficiency. Mortgage originations surged to $72.5 million, an impressive year-over-year increase of $33.0 million, or 83.3 percent,” continued Mr. Klein. “The Indianapolis team contributed 43 percent of our volume this quarter and our newest market, Cincinnati, had volume of $2.3 million in the quarter. Correspondingly, mortgage sales rose to $62.3 million, marking an 86.7 percent increase compared to the same period, last year.”

 

The mortgage servicing portfolio expanded to $1.43 billion, achieving a year-over-year increase of $60.7 million, or 4.4 percent, further strengthening our recurring revenue streams, and highlighting the effectiveness of our servicing retention strategies.

 

Net mortgage banking revenue for the quarter reached $2.0 million, up $703,000 from the prior year quarter, and for the year was $6.7 million up 18.1 percent compared to 2023. Gains on the sale of mortgages remained a key revenue driver, increasing by $448,000 year-over-year to $1.2 million. Loan servicing fees added $886,000 to revenue, reflecting an increase of $31,000 from the previous year quarter. Notably, the OMSR net valuation adjustment for full year 2024 was a positive $42,000 compared to a negative $51,000 for the full year of 2023.

 

Mortgage Banking																						Prior Year
($ in thousands)		Dec. 2024				Sep. 2024				Jun. 2024				Mar. 2024				Dec. 2023				Growth
Mortgage originations		$	72,534			$	70,715			$	75,110			$	42,912			$	39,566			$	32,968
Mortgage sales			62,301				61,271				55,835				36,623				33,362				28,939
Mortgage servicing portfolio			1,427,318				1,406,273				1,389,805				1,371,713				1,366,667				60,651
Mortgage servicing rights			14,868				14,357				14,548				14,191				13,906				962
Revenue
Loan servicing fees			886				874				862				855				855				31
OMSR amortization			(358	)			(370	)			(335	)			(273	)			(282	)			(76	)
Net administrative fees			528				504				527				582				573				(45	)
OMSR valuation adjustment			288				(465	)			38				181				(12	)			300
Net loan servicing fees			816				39				565				763				561				255
Gain on sale of mortgages			1,196				1,311				1,277				781				747				449
Mortgage banking revenue, net		$	2,012			$	1,350			$	1,842			$	1,544			$	1,308			$	704

 

 

Noninterest Income and Noninterest Expense

 

“Noninterest income for the fourth quarter of 2024 totaled $4.6 million, with linked quarter noninterest income increasing by $434,000 or 10.5 percent, primarily due to increased revenue in net mortgage loan servicing fees and higher wealth management fees. Compared to the prior year quarter, wealth management fees grew modestly by $78,000 year over year, and title insurance revenue added $100,000, reflecting our ability to deliver consistent performance across core revenue categories” Mr. Klein noted.

 

Noninterest Income/Noninterest Expense																						Prior Year
($ in thousands, except ratios)		Dec. 2024				Sep. 2024				Jun. 2024				Mar. 2024				Dec. 2023				Growth
Noninterest Income (NII)		$	4,557			$	4,123			$	4,386			$	3,951			$	5,531			$	(974	)
NII / Total Revenue			29.5	%			28.8	%			31.5	%			30.1	%			36.6	%			-7.1	%
NII / Average Assets			1.3	%			1.2	%			1.3	%			1.2	%			1.7	%			-0.4	%
Total Revenue Growth			2.2	%			4.5	%			-0.6	%			-6.1	%			3.4	%			-1.2	%
Noninterest Expense (NIE)		$	11,003			$	11,003			$	10,671			$	10,282			$	10,369			$	634
Efficiency Ratio			71.1	%			76.8	%			75.9	%			78.2	%			68.4	%			2.7	%
NIE / Average Assets			3.2	%			3.2	%			3.2	%			3.1	%			3.1	%			0.1	%
Net Noninterest Expense/Avg. Assets			-1.9	%			-2.0	%			-1.9	%			-1.9	%			-1.4	%			-0.5	%
Total Expense Growth			6.1	%			5.0	%			3.2	%			-4.6	%			1.0	%			5.1	%

 

Noninterest expense for the fourth quarter of 2024 was unchanged at $11.0 million compared to the third quarter but increased by $634,000, or 6.1 percent, year-over-year. The year-over-year increase was primarily driven by a $533,000 increase in salaries and employee benefits, reflecting investments in talent to support operational growth and increased business activity.

 

Noninterest expense increases were partially offset by reductions in discretionary expense categories, including a $61,000 decrease in state, local, and other taxes, as well as a $44,000 reduction in net occupancy expense. Postage and delivery expenses also saw a modest decline of $51,000.

 

“Our efficiency ratio improved to 71.09 percent in the fourth quarter of 2024 from 76.78 percent in the linked quarter, highlighting our ability to manage costs while investing strategically in growth areas. With a year-end headcount of 252 full-time equivalent employees, we remain focused on balancing growth with operational efficiency” stated Mr. Klein.

 

Balance Sheet

 

As of December 31, 2024, SB Financial reported total assets of $1.38 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.05 billion, marking a $46.5 million or 4.7 percent increase year over year. The strategic reallocation of liquidity contributed to this expansion, as evidenced by a decline in cash and available-for-sale securities, demonstrated the Company’s focus on maximizing returns while maintaining a solid financial position.

 

Total deposits increased to $1.15 billion, growing $82.4 million or 7.7 percent year over year, reflecting SB Financial’s strength in deposit gathering and customer engagement. Shareholders’ equity ended the year at $127.5 million, representing a $3.2 million increase from the prior year. This growth reflects management’s commitment to enhancing shareholder value and the Company’s disciplined approach to capital management.

 

 

During the fourth quarter, SB Financial repurchased 130,465 shares, continuing its active buyback program. This reflects the Company’s dedication to returning value to shareholders through dividends and share repurchases while retaining sufficient capital to fund its long-term growth strategies.

 

“As we conclude 2024, our balance sheet strength and strategic allocation of resources highlight our unwavering commitment to disciplined growth,” said Mr. Klein, Chairman, President, and CEO. “Despite a challenging rate environment, we achieved our third consecutive quarter of loan growth, with balances increasing by $46.5 million from the previous year. This performance underscores our ability to deepen client relationships while navigating competitive dynamics. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, positioning us to capitalize on emerging opportunities while maintaining operational excellence. Looking ahead, we remain focused on driving shareholder value and sustaining robust financial performance in the evolving economic landscape.”

 

Loan Balances																						Annual
($ in thousands, except ratios)		Dec. 2024				Sep. 2024				Jun. 2024				Mar. 2024				Dec. 2023				Growth
Commercial		$	124,764			$	123,821			$	123,287			$	120,016			$	126,716			$	(1,952	)
% of Total			11.9	%			12.0	%			12.3	%			12.1	%			12.7	%			-1.5	%
Commercial RE			479,573				459,449				434,967				429,362				424,041				55,532
% of Total			45.8	%			44.6	%			43.3	%			43.3	%			42.4	%			13.1	%
Agriculture			64,680				64,887				64,329				62,365				65,659				(979	)
% of Total			6.2	%			6.3	%			6.4	%			6.3	%			6.6	%			-1.5	%
Residential RE			308,378				314,010				316,233				314,668				318,123				(9,745	)
% of Total			29.5	%			30.5	%			31.5	%			31.7	%			31.8	%			-3.1	%
Consumer & Other			69,340				67,788				66,574				65,141				65,673				3,667
% of Total			6.6	%			6.6	%			6.6	%			6.6	%			6.6	%			5.6	%
Total Loans		$	1,046,735			$	1,029,955			$	1,005,390			$	991,552			$	1,000,212			$	46,523
Total Growth Percentage																							4.7	%

 

Deposit Balances																						Annual
($ in thousands, except ratios)		Dec. 2024				Sep. 2024				Jun. 2024				Mar. 2024				Dec. 2023				Growth
Non-Int DDA		$	232,155			$	222,425			$	208,244			$	219,395			$	228,713			$	3,442
% of Total			20.1	%			19.2	%			18.7	%			19.7	%			21.4	%			1.5	%
Interest DDA			201,085				202,097				190,857				169,171				166,413				34,672
% of Total			17.4	%			17.4	%			17.1	%			15.2	%			15.5	%			20.8	%
Savings			237,987				241,761				231,855				244,157				216,965				21,022
% of Total			20.6	%			20.8	%			20.8	%			21.9	%			20.3	%			9.7	%
Money Market			222,161				228,182				225,650				221,362				202,605				19,556
% of Total			19.3	%			19.7	%			20.2	%			19.9	%			18.9	%			9.7	%
Time Deposits			259,217				265,068				258,582				258,257				255,509				3,708
% of Total			22.5	%			22.9	%			23.2	%			23.2	%			23.9	%			1.5	%
Total Deposits		$	1,152,605			$	1,159,533			$	1,115,188			$	1,112,342			$	1,070,205			$	82,400
Total Growth Percentage																							7.7	%

 

Asset Quality

 

As of December 31, 2024, SB Financial Group maintained strong asset quality metrics. Nonperforming assets totaled $5.5 million, representing 0.40 percent of total assets, an increase of $2.2 million compared to the $3.3 million or 0.25 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we expect to resolve favorably by mid-year 2025.

 

 

The allowance for credit losses remained robust at 1.44 percent of total loans, providing 273.7 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of the institution’s conservative approach to risk management. This strength underscores SB Financial’s commitment to disciplined credit administration amidst evolving economic conditions. The net loan charge-offs to average loans ratio remained modest at 7 basis points and for the full year just 2 basis points, reflecting effective collateral management and a strong credit culture.

 

“Our asset quality metrics demonstrate resilience and our commitment to disciplined risk management,” stated Mark Klein, Chairman, President, and CEO. “While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and low charge-off levels underscore the performance of our loan portfolio. We remain focused on preserving the integrity of our credit processes while positioning our balance sheet for long-term growth.” This balanced approach reflects SB Financial’s efforts to maintain top-tier asset quality ratios, support lending growth, and ensure financial stability for the future.

 

Nonperforming Assets																						Annual
($ in thousands, except ratios)		Dec. 2024				Sep. 2024				Jun. 2024				Mar. 2024				Dec. 2023				Change
Commercial & Agriculture		$	2,927			$	2,899			$	2,781			$	897			$	748			$	2,179
% of Total Com./Ag. loans			1.55	%			1.54	%			1.48	%			0.49	%			0.39	%			291.3	%
Commercial RE			807				813				475				49				168				639
% of Total CRE loans			0.17	%			0.18	%			0.11	%			0.01	%			0.04	%			380.4	%
Residential RE			1,539				1,536				1,247				1,295				1,690				(151	)
% of Total Res. RE loans			0.50	%			0.49	%			0.39	%			0.41	%			0.53	%			-8.9	%
Consumer & Other			243				270				231				193				212				31
% of Total Con./Oth. loans			0.35	%			0.40	%			0.35	%			0.30	%			0.32	%			14.6	%
Total Nonaccruing Loans			5,516				5,518				4,734				2,434				2,818				2,698
% of Total loans			0.53	%			0.54	%			0.47	%			0.25	%			0.28	%			95.7	%
Foreclosed Assets and Other Assets			-				-				510				510				511				(511	)
Total Change (%)																							-100.0	%
Total Nonperforming Assets		$	5,516			$	5,518			$	5,244			$	2,944			$	3,329			$	2,187
% of Total assets			0.40	%			0.40	%			0.39	%			0.22	%			0.25	%			65.70	%

 

Webcast and Conference Call

 

The Company will hold the fourth quarter 2024 earnings conference call and webcast on January 24, 2025, 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 25 offices: 24 in ten Ohio counties and one in Fort Wayne, Indiana, and 25 ATMs. State Bank has seven 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

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)

 

		December				September				June				March				December
($ in thousands)		2024				2024				2024				2024				2023
ASSETS
Cash and due from banks		$	25,928			$	49,348			$	21,983			$	26,602			$	22,965
Interest bearing time deposits			1,565				1,706				2,417				2,417				1,535
Available-for-sale securities			201,587				211,511				207,856				213,239				219,708
Loans held for sale			6,770				8,927				7,864				4,730				2,525
Loans, net of unearned income			1,046,735				1,029,955				1,005,390				991,552				1,000,212
Allowance for credit losses			(15,096	)			(15,278	)			(15,612	)			(15,643	)			(15,786	)
Premises and equipment, net			20,456				20,715				20,860				20,985				21,378
Federal Reserve and FHLB Stock, at cost			5,223				5,223				5,204				6,512				7,279
Foreclosed assets and other assets			-				-				510				510				511
Interest receivable			4,908				4,842				4,818				3,706				4,657
Goodwill			23,239				23,239				23,239				23,239				23,239
Cash value of life insurance			30,685				30,488				30,294				30,103				29,121
Mortgage servicing rights			14,868				14,357				14,548				14,191				13,906
Other assets			12,649				8,916				12,815				13,869				11,999
Total assets		$	1,379,517			$	1,393,949			$	1,342,186			$	1,336,012			$	1,343,249
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand		$	232,155			$	222,425			$	208,244			$	219,395			$	228,713
Interest bearing demand			201,085				202,097				190,857				169,171				166,413
Savings			237,987				241,761				231,855				244,157				216,965
Money market			222,161				228,182				225,650				221,362				202,605
Time deposits			259,217				265,068				258,582				258,257				255,509
Total deposits			1,152,605				1,159,533				1,115,188				1,112,342				1,070,205
Short-term borrowings			10,585				15,240				15,178				12,916				13,387
Federal Home Loan Bank advances			35,000				35,000				35,000				35,000				83,600
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Subordinated debt net of issuance costs			19,690				19,678				19,666				19,654				19,642
Interest payable			2,351				3,374				2,944				2,772				2,443
Other liabilities			21,468				17,973				18,421				19,295				19,320
Total liabilities			1,252,009				1,261,108				1,216,707				1,212,289				1,218,907
Shareholders’ Equity
Common stock			61,319				61,319				61,319				61,319				61,319
Additional paid-in capital			15,194				15,090				15,195				14,978				15,124
Retained earnings			116,186				113,515				112,104				109,938				108,486
Accumulated other comprehensive loss			(30,234	)			(24,870	)			(31,801	)			(31,547	)			(29,831	)
Treasury stock			(34,957	)			(32,213	)			(31,338	)			(30,965	)			(30,756	)
Total shareholders’ equity			127,508				132,841				125,479				123,723				124,342
Total liabilities and shareholders’ equity		$	1,379,517			$	1,393,949			$	1,342,186			$	1,336,012			$	1,343,249

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

		At and for the Three Months Ended																				Twelve Months Ended
($ in thousands, except per share & ratios)		December 2024				September 2024				June 2024				March 2024				December 2023				December 2024				December 2023
Interest income
Loans
Taxable		$	14,920			$	14,513			$	13,883			$	13,547			$	13,438			$	56,863			$	51,407
Tax exempt			122				127				124				123				124				496				483
Securities
Taxable			1,770				1,871				1,610				1,593				1,526				6,844				6,092
Tax exempt			35				37				37				37				38				146				170
Total interest income			16,847				16,548				15,654				15,300				15,126				64,349				58,152
Interest expense
Deposits			5,169				5,568				5,208				5,090				4,398				21,035				14,708
Repurchase agreements & other			41				43				36				34				39				154				74
Federal Home Loan Bank advances			369				369				370				613				720				1,721				2,603
Trust preferred securities			177				187				187				188				191				739				716
Subordinated debt			194				195				194				195				194				778				778
Total interest expense			5,950				6,362				5,995				6,120				5,542				24,427				18,879
Net interest income			10,897				10,186				9,659				9,180				9,584				39,922				39,273
Provision for credit losses			(76	)			200				-				-				(74	)			124				315
Net interest income after provision for loan losses			10,973				9,986				9,659				9,180				9,658				39,798				38,958
Noninterest income
Wealth management fees			916				882				848				865				838				3,511				3,532
Customer service fees			842				870				875				880				844				3,467				3,403
Gain on sale of mtg. loans & OMSR			1,196				1,311				1,277				781				747				4,565				3,609
Mortgage loan servicing fees, net			816				39				565				763				561				2,183				2,101
Gain on sale of non-mortgage loans			10				20				105				10				177				145				429
Title insurance revenue			478				485				406				266				378				1,635				1,635
Net gain on sales of securities			-				-				-				-				1,453				-				1,453
Gain (loss) on sale of assets			-				200				-				-				16				200				20
Other			299				316				310				386				517				1,311				1,539
Total noninterest income			4,557				4,123				4,386				3,951				5,531				17,017				17,721
Noninterest expense
Salaries and employee benefits			6,185				6,057				6,009				5,352				5,652				23,603				22,777
Net occupancy expense			702				706				707				769				746				2,884				3,096
Equipment expense			1,127				1,069				1,060				1,077				1,027				4,333				4,078
Data processing fees			821				758				727				769				680				3,075				2,659
Professional fees			895				659				615				758				926				2,927				3,024
Marketing expense			207				241				176				197				182				821				782
Telephone and communication expense			136				128				156				105				132				525				501
Postage and delivery expense			116				145				89				97				167				447				432
State, local and other taxes			224				208				230				245				285				907				949
Employee expense			168				228				159				178				146				733				631
Other expenses			422				804				743				735				426				2,704				3,033
Total noninterest expense			11,003				11,003				10,671				10,282				10,369				42,959				41,962
Income before income tax expense			4,527				3,106				3,374				2,849				4,820				13,856				14,717
Income tax expense			892				752				261				481				937				2,386				2,622
Net income		$	3,635			$	2,354			$	3,113			$	2,368			$	3,883			$	11,470			$	12,095
Common share data:
Basic earnings per common share		$	0.55			$	0.35			$	0.47			$	0.35			$	0.58			$	1.72			$	1.77
Diluted earnings per common share		$	0.55			$	0.35			$	0.47			$	0.35			$	0.57			$	1.72			$	1.75
Average shares outstanding (in thousands):
Basic:			6,575				6,660				6,692				6,715				6,748				6,660				6,829
Diluted:			6,599				6,675				6,700				6,723				6,851				6,680				6,917

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share & ratios)		At and for the Three Months Ended																				Twelve Months Ended
SUMMARY OF OPERATIONS		December 2024				September 2024				June 2024				March 2024				December 2023				December 2024				December 2023
Net interest income		$	10,897			$	10,186			$	9,659			$	9,180			$	9,584			$	39,922			$	39,273
Tax-equivalent adjustment			42				44				43				43				43				171				174
Tax-equivalent net interest income			10,939				10,230				9,702				9,223				9,627				40,093				39,447
Provision for credit loss			(76	)			200				-				-				(74	)			124				315
Noninterest income			4,557				4,123				4,386				3,951				5,531				17,017				17,721
Total operating revenue			15,454				14,309				14,045				13,131				15,115				56,939				56,994
Noninterest expense			11,003				11,003				10,671				10,282				10,369				42,959				41,962
Pre-tax pre-provision income			4,451				3,306				3,374				2,849				4,746				13,980				15,032
Net income			3,635				2,354				3,113				2,368				3,883				11,470				12,095
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.55				0.35				0.47				0.35				0.58				1.72				1.77
Diluted earnings per share			0.55				0.35				0.47				0.35				0.57				1.72				1.75
Common dividends			0.145				0.140				0.140				0.135				0.135				0.560				0.520
Book value per common share			19.64				20.05				18.80				18.46				18.50				19.64				18.50
Tangible book value per common share (TBV)			16.00				16.49				15.26				14.93				14.98				16.00				14.98
Market price per common share			20.91				20.56				14.00				13.78				15.35				20.91				15.35
Market price to TBV			130.7	%			124.7	%			91.8	%			92.3	%			102.5	%			130.7	%			102.5	%
Market price to trailing 12 month EPS			12.1				11.8				7.9				7.9				8.8				12.1				8.8
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.04	%			0.68	%			0.93	%			0.71	%			1.17	%			0.84	%			0.91	%
Pre-tax pre-provision ROAA			1.28	%			0.96	%			1.01	%			0.85	%			1.43	%			1.10	%			1.21	%
Return on average equity (ROE)			11.13	%			7.32	%			10.16	%			7.70	%			13.23	%			9.19	%			10.22	%
Return on average tangible equity			13.58	%			8.97	%			12.59	%			9.53	%			16.57	%			11.34	%			12.78	%
Efficiency ratio			71.09	%			76.78	%			75.86	%			78.17	%			68.44	%			75.33	%			73.47	%
Earning asset yield			5.18	%			5.16	%			5.02	%			4.97	%			4.89	%			5.08	%			4.67	%
Cost of interest bearing liabilities			2.36	%			2.53	%			2.47	%			2.55	%			2.33	%			2.48	%			1.97	%
Net interest margin			3.35	%			3.17	%			3.10	%			2.98	%			3.10	%			3.15	%			3.15	%
Tax equivalent effect			0.01	%			0.02	%			0.01	%			0.01	%			0.01	%			0.01	%			0.01	%
Net interest margin, tax equivalent			3.36	%			3.19	%			3.11	%			2.99	%			3.11	%			3.16	%			3.16	%
Non interest income/Average assets			1.31	%			1.20	%			1.31	%			1.19	%			1.67	%			1.25	%			1.33	%
Non interest expense/Average assets			3.15	%			3.20	%			3.18	%			3.08	%			3.12	%			3.16	%			3.14	%
Net noninterest expense/Average assets			-1.85	%			-2.00	%			-1.87	%			-1.90	%			-1.46	%			-1.91	%			-1.81	%
ASSET QUALITY RATIOS:
Gross charge-offs			195				29				-				66				5				290				118
Recoveries			13				2				16				9				1				40				26
Net charge-offs			182				27				(16	)			57				4				250				92
Nonperforming loans/Total loans			0.53	%			0.54	%			0.47	%			0.25	%			0.28	%			0.53	%			0.28	%
Nonperforming assets/Loans & OREO			0.53	%			0.54	%			0.52	%			0.30	%			0.33	%			0.53	%			0.33	%
Nonperforming assets/Total assets			0.40	%			0.40	%			0.39	%			0.22	%			0.25	%			0.40	%			0.25	%
Allowance for credit loss/Nonperforming loans			273.68	%			276.83	%			329.78	%			642.69	%			560.18	%			273.68	%			560.18	%
Allowance for credit loss/Total loans			1.44	%			1.48	%			1.55	%			1.58	%			1.58	%			1.44	%			1.58	%
Net loan charge-offs/Average loans (ann.)			0.07	%			0.01	%			(0.01	%)			0.02	%			0.00	%			0.02	%			0.01	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			90.81	%			88.82	%			90.15	%			89.14	%			93.46	%			90.81	%			93.46	%
Equity/ Assets			9.24	%			9.53	%			9.35	%			9.26	%			9.26	%			9.24	%			9.26	%
Tangible equity/Tangible assets			7.66	%			7.97	%			7.72	%			7.63	%			7.63	%			7.66	%			7.63	%
Common equity tier 1 ratio (Bank)			13.43	%			13.19	%			13.98	%			13.84	%			13.42	%			13.43	%			13.42	%
END OF PERIOD BALANCES
Total assets			1,379,517				1,393,949				1,342,186				1,336,012				1,343,249				1,379,517				1,343,249
Total loans			1,046,735				1,029,955				1,005,390				991,552				1,000,212				1,046,735				1,000,212
Deposits			1,152,605				1,159,533				1,115,188				1,112,342				1,070,205				1,152,605				1,070,205
Shareholders equity			127,508				132,841				125,479				123,723				124,342				127,508				124,342
Goodwill and intangibles			23,597				23,613				23,630				23,646				23,662				23,597				23,662
Tangible equity			103,911				109,228				101,849				100,077				100,680				103,911				100,680
Mortgage servicing portfolio			1,427,318				1,406,273				1,389,805				1,371,713				1,366,667				1,427,318				1,366,667
Wealth/Brokerage assets under care			547,697				557,724				525,713				525,517				501,829				547,697				501,829
Total assets under care			3,354,532				3,357,946				3,257,704				3,233,242				3,211,745				3,354,532				3,211,745
Full-time equivalent employees			252				248				249				245				251				252				251
Period end common shares outstanding			6,494				6,624				6,676				6,702				6,720				6,494				6,720
Market capitalization (all)			135,780				136,189				93,458				92,359				103,147				135,780				103,147
AVERAGE BALANCES
Total assets			1,395,473				1,376,849				1,342,847				1,333,236				1,327,415				1,361,274				1,334,644
Total earning assets			1,301,872				1,283,407				1,246,099				1,230,736				1,236,165				1,267,794				1,246,531
Total loans			1,040,580				1,018,262				1,005,018				993,310				992,337				1,014,375				985,217
Deposits			1,163,531				1,145,964				1,120,367				1,091,803				1,084,939				1,130,973				1,094,547
Shareholders equity			130,647				128,608				122,510				123,058				117,397				124,742				118,315
Goodwill and intangibles			23,605				23,621				23,638				23,654				23,675				23,629				23,709
Tangible equity			107,042				104,987				98,872				99,404				93,722				101,113				94,606
Average basic shares outstanding			6,575				6,660				6,692				6,715				6,748				6,660				6,829
Average diluted shares outstanding			6,599				6,675				6,700				6,723				6,851				6,680				6,917

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

 

For the Three and Twelve Months Ended Dec. 31, 2024 and 2023

		Three Months Ended Dec. 31, 2024												Three Months Ended Dec. 31, 2023
		Average								Average				Average								Average
($ in thousands)		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities/cash		$	254,989			$	1,770				2.78	%		$	237,203			$	1,526				2.57	%
Nontaxable securities			6,303				35				2.22	%			6,625				38				2.29	%
Loans, net			1,040,580				15,042				5.78	%			992,337				13,562				5.47	%
Total earning assets			1,301,872				16,847				5.18	%			1,236,165				15,126				4.89	%
Cash and due from banks			4,262												4,077
Allowance for loan losses			(15,070	)											(15,787	)
Premises and equipment			20,642												22,205
Other assets			83,767												80,755
Total assets		$	1,395,473											$	1,327,415
Liabilities
Savings, MMDA and interest bearing demand		$	669,987			$	2,803				1.67	%		$	601,034			$	2,232				1.49	%
Time deposits			259,093				2,366				3.65	%			247,382				2,166				3.50	%
Repurchase agreements & other			13,229				41				1.24	%			13,359				39				1.17	%
Advances from Federal Home Loan Bank			35,000				369				4.22	%			58,330				720				4.94	%
Trust preferred securities			10,310				177				6.87	%			10,310				191				7.41	%
Subordinated debt			19,674				194				3.94	%			19,634				194				3.95	%
Total interest bearing liabilities			1,007,293				5,950				2.36	%			950,049				5,542				2.33	%
Non interest bearing demand			234,451				-								236,523				-
Total funding			1,241,744								1.92	%			1,186,572								1.87	%
											44.20	%							1
Other liabilities			23,082												23,446
Total liabilities			1,264,826												1,210,018
Equity			130,647												117,397
Total liabilities and equity		$	1,395,473											$	1,327,415				-
Net interest income						$	10,897											$	9,584
Net interest income as a percent of average interest-earning assets - GAAP measure											3.35	%											3.10	%
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis											3.36	%											3.11	%

 

 

		Twelve Months Ended Dec. 31, 2024												Twelve Months Ended Dec. 31, 2023
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities/cash		$	247,026			$	6,844				2.77	%		$	254,133			$	6,092				2.40	%
Nontaxable securities			6,393				146				2.28	%			7,181				170				2.37	%
Loans, net			1,014,375				57,359				5.65	%			985,217				51,890				5.27	%
Total earning assets			1,267,794				64,349				5.08	%			1,246,531				58,152				4.67	%
Cash and due from banks			4,388												4,035
Allowance for loan losses			(15,536	)											(15,478	)
Premises and equipment			20,929												22,990
Other assets			83,699												76,566
Total assets		$	1,361,274											$	1,334,644
Liabilities
Savings, MMDA and interest bearing demand		$	643,710			$	11,073				1.72	%		$	619,906			$	7,599				1.23	%
Time deposits			259,818				9,962				3.83	%			236,665				7,109				3.00	%
Repurchase agreements & Other			14,336				154				1.07	%			15,765				74				0.47	%
Advances from Federal Home Loan Bank			39,092				1,721				4.40	%			55,044				2,603				4.73	%
Trust preferred securities			10,310				739				7.17	%			10,310				716				6.94	%
Subordinated debt			19,665				778				3.96	%			19,616				778				3.97	%
Total interest bearing liabilities			986,931				24,427				2.48	%			957,306				18,879				1.97	%
Non interest bearing demand			227,445								2.01	%			237,976								1.58	%
Total funding			1,214,376												1,195,282
Other liabilities			22,156												21,047
Total liabilities			1,236,532												1,216,329
Equity			124,742												118,315
Total liabilities and equity		$	1,361,274											$	1,334,644
Net interest income						$	39,922											$	39,273
Net interest income as a percent of average interest-earning assets - GAAP measure											3.15	%											3.15	%
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis											3.16	%											3.16	%

 

 

Non-GAAP reconciliation		Three Months Ended								Twelve Months Ended
($ in thousands, except per share & ratios)		Dec. 31, 2024				Dec. 31, 2023				Dec. 31, 2024				Dec. 31, 2023
Total Operating Revenue		$	15,454			$	15,115			$	56,939			$	56,994
Adjustment to (deduct)/add OMSR recapture/impairment *			(288	)			12				(42	)			51
Adjusted Total Operating Revenue			15,166				15,127				56,897				57,045
Income before Income Taxes			4,527				4,820				13,856				14,717
Adjustment for OMSR *			(288	)			12				(42	)			51
Adjusted Income before Income Taxes			4,239				4,832				13,814				14,768
Provision for Income Taxes			892				938				2,386				2,623
Adjustment for OMSR **			(60	)			3				(9	)			11
Adjusted Provision for Income Taxes			832				941				2,377				2,634
Net Income			3,635				3,882				11,470				12,094
Adjustment for OMSR *			(228	)			9				(33	)			40
Adjusted Net Income			3,407				3,891				11,437				12,134
Diluted Earnings per Share			0.55				0.57				1.72				1.75
Adjustment for OMSR *			(0.03	)			0.00				(0.00	)			0.01
Adjusted Diluted Earnings per Share		$	0.52			$	0.57			$	1.71			$	1.75
Return on Average Assets			1.04	%			1.17	%			0.84	%			0.91	%
Adjustment for OMSR *			-0.07	%			0.00	%			0.00	%			0.00	%
Adjusted Return on Average Assets			0.98	%			1.17	%			0.84	%			0.91	%

 

*

valuation adjustment to the Company’s mortgage servicing rights

 

**

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

 

 

v3.24.4

Cover	Jan. 23, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 23, 2025
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 6,524,769 Outstanding at January 28, 2025
Trading Symbol	SBFG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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