SB Financial Group, Inc. (SBFG) Market Cap
SB Financial Group, Inc. has a market capitalization of $136.1M.
Financials based on reported quarter end 2025-12-31
Price: $21.59
▲ 0.60 (2.86%)
Market Cap: 136.07M
NASDAQ · time unavailable
CEO: Mark A. Klein
Sector: Financial Services
Industry: Banks - Regional
IPO Date: 1999-01-04
Website: https://ir.yourstatebank.com
SB Financial Group, Inc. (SBFG) - Company Information
Market Cap: 136.07M · Sector: Financial Services
SB Financial Group, Inc. provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. As of December 31, 2021, the company operated a network of 22 banking centers in the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Wood, and Williams; and one banking center in Allen County, Indiana. It also operated five loan production offices in Franklin and Lucas Counties, Ohio; Hamilton and Steuben Counties, Indiana; and Monroe County, Michigan. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was incorporated in 1983 and is headquartered in Defiance, Ohio.
Analyst Sentiment
Based on 1 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
Management delivered strong reported profitability (Q4 diluted EPS $0.63; adjusted $0.65) and solid balance-sheet growth (loans +12.8% YoY; deposits +13% YoY excluding acquisition still +9.3%). The tone in prepared remarks is optimistic—net interest income up ~17% YoY and operating leverage (core 2x; expense discipline). However, the Q&A reveals the real pressure points: deposit pricing stress with competitive higher rates, leading to a guided NIM slide of 5–7 bps in 2026 from ~3.51%, and only partial offset from asset repricing (remaining contractual repricing $125M-$140M in first 9 months of 2026). On mortgage, growth guidance is cautious and capacity-driven (low-mid single digit; ~$310M-$325M production, potentially higher with lender adds), alongside noninterest income risk from OMSR impairment. Credit quality is improving but resolution has taken longer than desired; reserves are expected to hold up (provision flat; reserve ratio down only ~3–4 bps). Overall: strong fundamentals, but funding-cost and income volatility are the key watch items.
Growth Catalysts
- Loan growth of $70 million in the quarter (+25% annualized); +$133.9 million YoY (+12.8%) and 7 consecutive quarters of sequential loan growth
- Commercial lending in/around Greater Columbus: >$73 million in 2025
- De novo expansions: Napoleon, OH and Angola, IN with nearly $15 million in loan growth in the quarter
- Operational cross-sell via 7 business lines: ~1,400 referrals; 53% (734) closed; $92 million in new business
Business Development
- Marblehead acquisition: conversion of customers to core system completed in October; stable deposit base post-close
- Advisory Alpha partnership: added wealth management professionals/bench strength starting 2026
- Mortgage lending staffing build: 23 mortgage lenders; plan to add 4-5 more (Cincinnati, Indianapolis, Northwest Ohio)
- New ag lender in Northern Ohio: funded loan growth $19 million (+20%) and $3 million core deposits; backed by 25-year ag production leader
Financial Highlights
- Q4 GAAP net income: $3.9 million; diluted EPS: $0.63 (+$0.08, ~+15% YoY)
- Service rights recapture adjusted EPS: $0.65 (60th consecutive quarter of profitability)
- Full-year GAAP EPS: $2.19 (+27% vs 2024 $1.72; +18% vs 2025 budget)
- Net interest income (NII): $12.7 million Q4 (+~17% YoY); +3.1% linked quarter; full-year NII $48.4 million (+$8.5 million, +21%)
- NIM outlook: ended Q4 at ~3.51%; management forecast NIM gradually down 5-7 bps in 2026
- Loan yield: 5.94% (flat linked quarter, +19 bps YoY); yield on earning assets up 17 bps to 5.32%
- Q4 charge-offs rose to 4 bps vs 0 bps in Q3; but only 2 bps for all of 2025
- Nonperforming loans: 0.39% of total loans (down sequentially and YoY); NPL expectations: further improvement in 1H 2026
- Noninterest income: down 18.6% YoY to $3.7 million; down 12.6% linked quarter (driven by OMSR impairment)
Capital Funding
- Share repurchases: Q4 nearly 32,000 shares at avg ~$21 (about 114% of tangible book; 96% when adjusted for AOCI)
- Full-year buyback: a little over 283,000 shares for $5.5 million (used 40% of earnings; avg price just over $19 YTD)
- Excess liquidity: ~$50 million at quarter end
- Debt capacity: $160 million outstanding debt capacity
- Contingent liquidity: over $550 million; liquidity ratios within internal policy 5%-10%
- Loan-to-deposit ratio: 90.3% (target range 90%-95%)
Strategy & Ops
- Expenses: down ~2.3% linked quarter; +2.1% YoY; full-year expense growth excluding one-time merger costs was 7.7% vs full-year 2025 revenue growth 15.1% (core operating leverage 2x)
- Expense guidance for 2026: total expense growth expected ~3.5% to 4% with positive operating leverage 1.5x to 2x
- Dividend declared: $0.155/share (~2.8% yield; ~25% of earnings); 13th consecutive year of annual dividend increases
- Marblehead integration: unified operating model; platform conversion completed in October; shifted from integration to execution
Market Outlook
- Mortgage production growth (2026): guided low to mid-single-digit; management cited range $310M-$325M (with potential upper end $350M-$375M if pushing capacity)
- Mortgage sales volume assumption: maintain ~85% sales level
- Mortgage pipeline: expects 2026 volumes to climb by low to mid-double digits (gain-on-sale execution mentioned)
- Deposit margin pressure: NIM down 5-7 bps in 2026 (from ~3.51%)
- NIM sensitivity driver: deposit pricing stress and competitive higher pricing; expected deposit yield pressure as rates evolve
- Credit/reserves: provision expected relatively flat vs 2025; reserve ratio expected to decline ~3-4 bps by this time next year
Risks & Headwinds
- Deposit funding cost pressure: competitive pricing and higher requests from clients; deposit yield mix shifts expected to pressure NIM by 5-7 bps in 2026
- Mortgage activity below expectations: full-year residential market volume missed budget by ~28% (annual $278M volume), although +8% vs prior year
- Operational/credit resolution pace: improvement in credit quality but “took longer than we would like” to resolve problem credits; management expects slower-than-desired resolution to continue to improve in 2026
- Noninterest income volatility: OMSR impairment drove the Q4 noninterest income decline
- Competition: stiff competition acknowledged across loan growth; deals found often concentrated in/around Columbus
Sentiment: MIXED
Note: This summary was synthesized by AI from the SBFG Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.