SB Financial Group (SBFG) AI Stock Analysis

• Market Cap: $143.80M
• Dividend Yield: 2.69%
• Average Volume (3M): 14.14K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.19
• Revenue Growth: 10.78%
• EPS Growth: 21.72%
• Country: US
• Employees: 262
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 6,298,527
• 10 Day Avg. Volume: 18,367
• 30 Day Avg. Volume: 14,141
• PEG Ratio: -4.30
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 16.94
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 5.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $25.00 ▲(17.87% Upside)

SBFG scores well on financial performance (strong cash generation, low leverage, improving profitability) and is supported by reasonable valuation (low P/E with a ~2.7% yield). Technicals are mildly bullish with price above key moving averages, while the earnings outlook remains positive but tempered by guided NIM pressure and variability in noninterest income/mortgage execution.

Positive Factors

Free cash flow generation

Very strong FCF growth and near‑1:1 FCF-to-net-income conversion provide durable internal funding for loan growth, dividends, buybacks and reserves. This reduces reliance on external funding, improving financial flexibility through credit cycles and margin pressure periods.

Low leverage / strong capital

A low debt-to-equity ratio indicates conservative capitalization that supports resilience to credit shocks and interest‑rate stress. It preserves capacity to deploy additional debt capacity or capital for organic growth and shareholder returns without overstretching the balance sheet.

Consistent loan & deposit growth

Sustained loan and deposit expansion translates into recurring net interest income growth, supporting core profitability. Funding from core deposits and continued organic loan growth underpin margin stability and predictable interest-earning asset expansion over the medium term.

Negative Factors

Noninterest income volatility

Material decline and impairment in mortgage servicing and OMSR reduce revenue diversification, making earnings more dependent on NII. Persistent volatility in fee income increases earnings cyclicality and raises execution risk if mortgage/ancillary channels underperform.

Margin pressure from funding costs

Rising funding costs and deposit pricing pressure create a structural headwind to NIM. Even with loan growth, sustained higher funding expense can compress net interest margins and ROE over the medium term absent sustained asset-yield expansion or fee recovery.

Mortgage execution risk

Significant shortfall versus mortgage targets highlights execution and capacity gaps; management must add lenders and scale operations to reach upside. Continued missed budgets would prolong noninterest income weakness and increase reliance on interest income for growth.

SB Financial Group Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

SB Financial Group generates revenue through multiple key streams. Primarily, the company earns interest income from its banking operations, which include loans, mortgages, and credit products. Service fees from account maintenance, transaction processing, and financial advisory services also contribute significantly to its income. Additionally, SBFG generates revenue from asset management and investment services, charging management fees based on the assets under management. The insurance division earns premiums from policyholders, which adds another layer to its revenue model. Strategic partnerships with other financial institutions and referral agreements enhance its service offerings and broaden its customer base, further driving revenue growth.

SB Financial Group Financial Statement Overview

Summary

Overall fundamentals are solid: improving net profit margin (TTM 16.07%), low leverage (debt-to-equity 0.25), and very strong free cash flow growth (TTM +85.50%) with good cash conversion. Offsets include some gross margin pressure, a slightly lower ROE (TTM 7.86%), and weaker operating cash flow vs net income.

Income Statement

SB Financial Group shows a consistent revenue growth trajectory with a TTM revenue growth rate of 2.74%. The gross profit margin has decreased over time, indicating potential cost pressures. However, the net profit margin has improved to 16.07% in the TTM, reflecting better profitability management. EBIT and EBITDA margins are stable, suggesting efficient operational management.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.25 in the TTM, indicating low leverage and financial stability. The return on equity has slightly decreased to 7.86%, which could be a concern for investors seeking high returns. The equity ratio remains strong, highlighting a solid capital structure.

Cash Flow

SB Financial Group exhibits a robust free cash flow growth rate of 85.50% in the TTM, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, indicating efficient conversion of profits into cash. However, the operating cash flow to net income ratio is low, suggesting potential issues in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.45M	81.37M	75.87M	62.80M	72.60M	72.73M
Gross Profit	63.56M	56.81M	56.68M	57.63M	67.53M	61.53M
EBITDA	20.75M	17.41M	18.28M	19.33M	28.94M	25.18M
Net Income	13.69M	11.47M	12.10M	12.52M	18.28M	14.94M
Balance Sheet
Total Assets	1.50B	1.38B	1.34B	1.34B	1.33B	1.26B
Cash, Cash Equivalents and Short-Term Investments	131.34M	199.25M	244.21M	268.73M	415.41M	295.92M
Total Debt	65.70M	65.28M	116.63M	94.52M	40.37M	28.19M
Total Liabilities	1.36B	1.25B	1.22B	1.22B	1.19B	1.11B
Stockholders Equity	136.94M	127.51M	124.34M	118.43M	144.93M	142.92M
Cash Flow
Free Cash Flow	19.54M	8.22M	13.03M	23.67M	14.83M	21.93M
Operating Cash Flow	21.73M	9.45M	13.99M	25.57M	17.26M	23.91M
Investing Cash Flow	-19.07M	-28.95M	-17.39M	-165.67M	-71.99M	-57.22M
Financing Cash Flow	33.02M	22.46M	-1.45M	18.41M	63.55M	146.94M

SB Financial Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBFG, the sentiment is Positive. The current price of 21.21 is below the 20-day moving average (MA) of 21.83, below the 50-day MA of 21.89, and above the 200-day MA of 20.05, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 69.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBFG.

SB Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBFG	75 Outperform	$143.80M	10.42	10.12%	2.69%	10.78%	21.72%
EBMT	75 Outperform	$172.64M	11.45	7.43%	2.93%	6.10%	59.32%
UNB	74 Outperform	$114.06M	10.24	15.11%	6.08%	14.52%	27.90%
FCAP	70 Outperform	$197.24M	12.05	11.84%	1.96%	11.36%	25.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$129.32M	45.90	1.57%	0.88%	9.43%	166.36%
PNBK	55 Neutral	$177.09M	-0.57	-35.87%	―	-11.99%	63.64%

SB Financial Group Corporate Events

SB Financial Group Raises Quarterly Dividend by Seven Percent

On January 23, 2026, SB Financial Group, Inc. announced that its board of directors declared a quarterly cash dividend of $0.155 per common share, payable on February 27, 2026, to shareholders of record as of February 13, 2026. The payout represents a 7% increase over the prior-year quarterly dividend of $0.145 per share, lifting the total dividend for the past four quarters to $0.61 per share from $0.57 per share, and equating to a stated yield of 2.7%, signaling continued capital returns and a modestly strengthened shareholder payout profile.

The most recent analyst rating on (SBFG) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on SB Financial Group stock, see the SBFG Stock Forecast page.

SB Financial Group announces board transition and new director

On December 17, 2025, SB Financial Group implemented a planned transition on its board of directors as longtime director Rita A. Kissner retired after more than 21 years of service and was honored with the title of director emeritus, while the board simultaneously appointed veteran advisory board member and local entrepreneur Sue A. Strausbaugh to fill the resulting vacancy, a move announced publicly on December 19, 2025. The change maintains continuity in governance by elevating Strausbaugh, who brings more than 13 years of experience on the company’s Defiance Advisory Board and extensive community and nonprofit involvement, underscoring SB Financial’s emphasis on local market expertise, strong oversight and long-term shareholder value while confirming there are no related-party or conflict-of-interest concerns tied to her appointment.

The most recent analyst rating on (SBFG) stock is a Buy with a $24.50 price target. To see the full list of analyst forecasts on SB Financial Group stock, see the SBFG Stock Forecast page.