Sb Financial Group Stock Earnings Reports

SB Financial reported steady execution in Q3 2025 with continuing profitability and balanced growth. Key financials: net income of $4.0 million and diluted EPS of $0.64 (up ~83% YoY), adjusted EPS of $0.68 after a servicing-rights impairment, tangible book value per share of $17.21 (up 4.4% YoY; +8.9% ex-acquisition payment), and total operating revenue of $16.6 million. Net interest income rose 21% YoY to $12.3 million and loan balances grew ~7.8% YoY (six consecutive quarters of loan growth). Deposits increased ~9% YoY (including $51 million from the recently integrated Marblehead acquisition); core deposit growth ex-acquisition was ~4.5%. Assets under care now exceed $3.5 billion (bank loans ~ $1.5B, servicing ~ $1.5B, wealth ~$563M). Mortgage originations remain subdued ($67.6M in Q3) but pipeline activity is improving; management expects higher mortgage volume if rates fall below ~6%. Operating expenses were well-controlled (down ~3% vs. prior quarter; year-to-date expense growth of 9.5% vs. revenue growth 18.5%), providing operating leverage. Asset quality remains a strength: charge-offs declined, nonperforming assets $4.9M, criticized/classified loans $5.8M, allowance for credit losses 1.44% (345% coverage of NPAs). Capital actions: $4.5M of buybacks year-to-date (252k shares) and a declared quarterly dividend of $0.155/share (13th consecutive year of increases). Strategy & outlook: successful Marblehead integration and entry into adjacent markets (including Napoleon, OH) provide deposit and relationship expansion opportunities; management expects Q4 tailwinds from potential Fed rate cuts, higher margin from asset repricing, continued loan pipelines (guidance: another high single-digit loan growth for 2026), and cautious optimism on mortgage volume recovery. Management will balance deposit competition, funding costs, and targeted wholesale borrowing while preserving capital optionality for organic growth and potential acquisitions.