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SB Financial Group Inc (SBFG)
:SBFG
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SB Financial Group
(NASDAQ:SBFG)
72Outperform
SB Financial Group (SBFG) vs. S&P 500 (SPY)
Market Cap
$126.78M
Dividend Yield2.94%
Average Volume (3M)19.93K
Price to Earnings (P/E)11.3
Beta (1Y)0.44
Revenue Growth6.80%
EPS Growth-2.85%
CountryUS
Employees252
SectorFinancial
Sector Strength88
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.72
Shares Outstanding6,534,918
10 Day Avg. Volume27,078
30 Day Avg. Volume19,927
Financial Highlights & Ratios
PEG Ratio5.22
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.48
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.92
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
SB Financial Group Business Overview & Revenue Model
Company DescriptionSB 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.
How the Company Makes MoneySB Financial Group generates revenue through various streams, primarily through interest income from its lending activities, including personal, commercial, and mortgage loans. Additionally, the company earns fees and commissions from its wealth management and advisory services, as well as from transaction fees related to its banking operations. SBFG's earnings are further supplemented by gains from investment securities and partnerships with other financial institutions, which enhance its product offerings and customer reach.
SB Financial Group Financial Statement Overview
Summary
SB Financial Group exhibits solid financial performance with strong revenue growth and operational efficiency, as seen in the income statement. The absence of debt strengthens the balance sheet, although there is room for improvement in return on equity. Cash flow performance is weaker due to declining operating and free cash flows, highlighting a need for improvement in cash conversion efficiency.Income Statement
SB Financial Group shows a mixed performance. The gross profit margin remains strong at 100% due to total revenue equaling gross profit. However, the net profit margin decreased slightly to 17.82% in 2024 from 21.22% in 2023, indicating rising costs or decreased efficiency. Revenue growth improved by 12.91% from 2023 to 2024, marking a positive trend. The EBIT margin improved significantly to 94.21% in 2024, indicating better operational efficiency. Nevertheless, the absence of EBITDA data limits comprehensive analysis.75
Positive
Balance Sheet
The company maintains a solid equity position with an equity ratio of 9.24% in 2024, albeit slightly lower than the previous year. The absence of debt in 2024 improves the balance sheet's strength, with a debt-to-equity ratio of 0. Return on equity decreased slightly to 8.99% from 9.73%, suggesting a slight decline in efficiency in generating returns from equity. Overall, the balance sheet reflects stability but with room for improved equity utilization.70
Positive
Cash Flow
Operating cash flow decreased notably from $13.99M in 2023 to $9.45M in 2024, indicating potential challenges in cash generation from operations. Free cash flow also reduced, with a growth rate of -27.42%. The operating cash flow to net income ratio is at 0.82 in 2024, suggesting some pressure in converting income into cash. However, the free cash flow to net income ratio is stable at 0.82. Overall, the cash flow statement shows a need for improvement in cash conversion efficiency.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 64.35M | 56.99M | 57.63M | 68.58M | 66.03M | Gross Profit |
| 64.35M | 56.73M | 57.63M | 68.58M | 66.03M | EBIT |
| 60.60M | 14.72M | 19.56M | 22.72M | 18.44M | EBITDA |
| 0.00 | 0.00 | 19.33M | 28.94M | 25.18M | Net Income Common Stockholders |
| 11.47M | 12.10M | 12.52M | 18.28M | 14.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 227.51M | 22.96M | 268.73M | 415.41M | 295.92M | Total Assets |
| 1.38B | 1.34B | 1.34B | 1.33B | 1.26B | Total Debt |
| 54.69M | 103.24M | 94.52M | 40.37M | 8.00M | Net Debt |
| 27.20M | 78.74M | 64.57M | -111.79M | -138.51M | Total Liabilities |
| 1.25B | 1.22B | 1.22B | 1.19B | 1.11B | Stockholders Equity |
| 127.51M | 124.34M | 118.43M | 144.93M | 142.92M |
| Cash Flow | Free Cash Flow | |||
| 9.45M | 13.03M | 23.67M | 14.83M | 21.93M | Operating Cash Flow |
| 9.45M | 13.99M | 25.57M | 17.26M | 23.91M | Investing Cash Flow |
| -28.95M | -17.39M | -165.67M | -71.99M | -57.22M | Financing Cash Flow |
| 22.46M | -1.45M | 18.41M | 63.55M | 146.94M |
SB Financial Group Technical Analysis
Neutral
19.40
Price Trends
19.88
Negative
20.78
Negative
19.43
Negative
Market Momentum
-0.13
Negative
49.04
Neutral
64.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBFG, the sentiment is Neutral. The current price of 19.4 is above the 20-day moving average (MA) of 18.95, below the 50-day MA of 19.88, and below the 200-day MA of 19.43, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 64.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBFG.
SB Financial Group Risk Analysis
SB Financial Group disclosed 35 risk factors in its most recent earnings report. SB Financial Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SB Financial Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $143.27M | 12.68 | 6.42% | 3.16% | 9.50% | 27.04% | |
72 Outperform | $126.78M | 11.33 | 9.08% | 2.94% | 6.80% | -2.85% | |
68 Neutral | $131.72M | 26.40 | 4.90% | 1.48% | 8.04% | -16.15% | |
67 Neutral | $152.26M | 11.53 | 8.05% | 1.13% | 10.13% | -21.30% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
60 Neutral | $149.67M | 16.19 | 6.82% | 4.00% | 13.55% | 3.11% | |
54 Neutral | $148.84M | 11.77 | 7.29% | 2.42% | -1.01% | -1.81% |
* Financial Sector Average
Performance Comparison
SBFG
SB Financial Group
19.40
6.34
48.55%
CFBK
CF Bankshares
23.80
5.61
30.84%
CZWI
Citizens Community Bancorp
14.90
4.20
39.25%
EBMT
Eagle Bancorp Montana
17.96
5.45
43.57%
SFBC
Sound Financial Bancorp
51.33
12.73
32.98%
RMBI
Richmond Mutual Bancorporation
14.26
3.32
30.35%
SB Financial Group Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with significant growth in net income, net interest income, and successful acquisition integration. However, challenges were noted in the mortgage origination segment and increased operating expenses. Overall, the highlights significantly outweighed the lowlights.Q1-2025 Updates
Positive Updates
Strong Net Income Growth
Net income was $2.7 million with diluted earnings per share of $0.42, up $0.09 or approximately 27% compared to the prior year quarter.
Increased Net Interest Income
Net interest income totaled $11.3 million, an increase of approximately 23% from $9.2 million in the first quarter of 2024.
Successful Acquisition
The Marblehead Bank Corp acquisition added $56 million in low-cost deposits and $19 million in loans, enhancing market presence in Ottawa County, Ohio.
Tangible Book Value Increase
Tangible book value per share ended the quarter at $15.79, up from $14.93 last year, marking a 5.8% increase.
Commercial Loan Growth
The loan portfolio grew $97 million or 9.8% from the first quarter of 2024, with significant contributions from the Columbus market.
Title Business Expansion
The title business had a very strong quarter, exceeding the prior year revenue by nearly 50%.
Negative Updates
Mortgage Origination Decline
Mortgage origination for the quarter was $40 million, down from the prior year and the linked quarters.
Increased Operating Expenses
Operating expenses increased approximately 3.5% from the linked-quarter, including $726,000 in merger-related expenses.
Non-Interest Income Decline
Non-interest income was down slightly from the linked-quarter, despite a year-over-year increase.
Non-Performing Assets Increase
Non-performing assets totaled $6.1 million, representing 41 basis points of total assets, an increase of $600,000 compared to the linked-quarter.
Company Guidance
During the SB Financial First Quarter 2025 Conference Call, several key financial metrics and strategic initiatives were highlighted. The company reported a net income of $2.7 million, with diluted earnings per share (EPS) of $0.42, marking a 27% increase from the previous year. The tangible book value per share rose by 5.8% to $15.79. Net interest income increased by 23% to $11.3 million, driven by a 9.8% loan growth totaling $97 million, which marked the fourth consecutive quarter of sequential loan growth. Deposits grew over 10%, bolstered by the Marblehead acquisition, adding $56 million in deposits. Mortgage originations were $40 million for the quarter, with expectations for a more vigorous summer volume. Operating expenses rose by 3.5% from the linked quarter, and charge-off levels returned to historical levels at approximately 3 basis points. The company remains focused on five key initiatives, including revenue diversification, broadening its footprint, improving operational excellence, and maintaining asset quality. Non-interest income rose by 3.9% to $4.1 million, supported by gains on the sale of mortgage loans and commercial loan swap revenue. The completion of the Marblehead Bank Corp acquisition added $56 million in low-cost deposits and a $19 million loan book, strengthening SB Financial's market position. The company's focus on digital innovation and operational efficiency continues, with a new digital banking officer appointed to drive growth and enhance client care initiatives. The net interest margin improved to 3.4%, with expectations for further increases throughout 2025. Asset quality remained strong, with non-performing assets representing 41 basis points of total assets, and the allowance for credit losses at 1.41% of total loans.SB Financial Group Corporate Events
Dividends
SB Financial Group Announces Increased Quarterly Dividend
Positive
Apr 21, 2025
On April 21, 2025, SB Financial Group announced a quarterly cash dividend of $0.15 per share, payable on May 30, 2025, to shareholders of record as of May 16, 2025. This dividend reflects a 7% increase from the previous year and indicates a strong financial performance, providing a 3.2% yield, which may positively impact shareholder value and market perception.
Spark’s Take on SBFG Stock
According to Spark, TipRanks’ AI Analyst, SBFG is a Outperform.
SB Financial Group reflects a stable performance with a strong financial foundation characterized by robust revenue growth, operational efficiency, and a debt-free balance sheet. While the valuation is attractive, and recent acquisitions bolster growth prospects, challenges in cash flow management and increased operating expenses pose risks. Technical analysis suggests a cautious short-term outlook. The overall score reflects these strengths and challenges, indicating moderate growth potential.
To see Spark’s full report on SBFG stock, click here.
Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
SB Financial Group Reports Strong 2024 Net Income
Positive
Apr 16, 2025
At the annual shareholder meeting on April 16, 2025, SB Financial Group reported a net income of $11.5 million for 2024, with significant growth in deposits and loans. The company expanded its market share, opened a new loan production office, and received regulatory approval for a full-service branch in Indiana, indicating a strategic push to strengthen its market position and diversify revenue streams.
Spark’s Take on SBFG Stock
According to Spark, TipRanks’ AI Analyst, SBFG is a Outperform.
SB Financial Group demonstrates a solid financial foundation with strong revenue growth and operational efficiency, strengthened by a debt-free balance sheet. While the company’s valuation is attractive and recent acquisitions bolster growth prospects, challenges in cash flow management and increased operating expenses pose risks. The technical analysis indicates a need for cautious optimism due to mixed signals. Overall, the stock score reflects a stable performance with growth potential tempered by notable challenges.
To see Spark’s full report on SBFG stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.