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SB Financial Group Inc (SBFG)
NASDAQ:SBFG
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SB Financial Group (SBFG) AI Stock Analysis

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SBFG

SB Financial Group

(NASDAQ:SBFG)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
$30.00
▲(17.10% Upside)
Action:Upgraded
Date:07/24/26
SBFG scores well overall due to improving profitability/leverage and constructive earnings-call guidance, reinforced by a strong technical uptrend. The main constraint is financial consistency—uneven revenue history and especially volatile/free-cash-flow weakness—while valuation (low P/E and ~2.3% yield) provides additional support.
Positive Factors
Improving profitability and ROE
Sustained margin expansion and an ROE above 11% reflect improving core banking profitability and operating discipline. That durability supports internal capital generation, dividends and selective buybacks, and provides a more stable earnings base across a 2–6 month horizon.
Negative Factors
Volatile free cash flow
Large swings in free cash flow reduce predictability of internally funded growth and shareholder returns. Volatility constrains the bank's ability to consistently fund loan origination, repay wholesale funding or expand buybacks/dividends without drawing on capital buffers.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and ROE
Sustained margin expansion and an ROE above 11% reflect improving core banking profitability and operating discipline. That durability supports internal capital generation, dividends and selective buybacks, and provides a more stable earnings base across a 2–6 month horizon.
Read all positive factors

SB Financial Group (SBFG) vs. SPDR S&P 500 ETF (SPY)

SB Financial Group Business Overview & Revenue Model

Company Description
SB Financial Group, Inc., based in Defiance, Ohio, was established in 1983 and rebranded from Rurban Financial Corp. in April 2013. The company delivers a comprehensive array of commercial banking and wealth management solutions to both individual...
How the Company Makes Money
SBFG primarily makes money through its banking subsidiary by (1) generating net interest income and (2) earning noninterest income. Net interest income is the largest driver for typical community banks and is earned from the spread between interes...

SB Financial Group Earnings Call Summary

Earnings Call Date:Jul 23, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented multiple constructive operating and balance-sheet trends: solid loan and deposit growth, improved tangible book value and capital, diversified fee revenue, positive operating leverage, and strong asset quality. The principal negatives were GAAP EPS compression driven by MSR-related accounting items, lower mortgage originations versus the prior year, modest margin compression and some deposit relationship turnover risk. On balance, the positive operating fundamentals, capital strength, and improving credit metrics outweigh the transitory/market-driven negatives.
Positive Updates
Consistent Profitability and Adjusted EPS Growth
GAAP net income was $4.5 million with diluted EPS of $0.07 (impacted by MSR adjustments), and adjusted diluted EPS (adjusting MSR valuation) rose to $0.73 from $0.58 year-over-year, an increase of ~26%.
Negative Updates
GAAP EPS Compression
GAAP diluted EPS fell to $0.07 from $0.60 in the prior year quarter (MSR valuation and other GAAP items materially impacted reported EPS despite stronger adjusted results).
Read all updates
Q2-2026 Updates
Negative
Consistent Profitability and Adjusted EPS Growth
GAAP net income was $4.5 million with diluted EPS of $0.07 (impacted by MSR adjustments), and adjusted diluted EPS (adjusting MSR valuation) rose to $0.73 from $0.58 year-over-year, an increase of ~26%.
Read all positive updates
Company Guidance
Management guided to steady, constructive execution for the back half of 2026, expecting net interest margin to settle around 3.45%–3.55% (Q2 was 3.43%), roughly $50–$70 million of incremental loan growth from now to year end (about a 50/50 split between Columbus and other markets), and roughly $70 million of excess liquidity to fund that growth despite an anticipated ~$40 million institutional deposit exit in Q3; they see deposit growth normalizing but still trending 3%–5% per quarter and noted $130 million of disruption-driven balances captured year‑to‑date toward a $500 million goal. Additional guidance included Q3 operating expenses of about $12.3–12.4 million (Q2 was $12.1M) and Q4 around $12.0M, mortgage originations roughly $80M in Q3 and $50–$60M in Q4 (Q2 was $79.3M) with a $1.5B servicing portfolio, and continued capital discipline (repurchased ~28k shares at $22.06, shares trading ~1.4x tangible book) while maintaining a $0.16 quarterly dividend (annualized yield ~2.4%, 22% payout). Key steady-state metrics management reiterated: loans $1.19B, deposits $1.39B (loan-to-deposit 85.5%), NII $13.0M, total operating revenue ~$17.9M, adjusted diluted EPS $0.73 (GAAP $0.07), efficiency ratio 67.3%, allowance 1.38% of loans, and NPAs 0.27% of assets.

SB Financial Group Financial Statement Overview

Summary
Financial quality is solid but uneven: profitability improved TTM (net margin ~17.2%, EBIT margin ~21.3%) and leverage is healthier (debt-to-equity ~0.47, ROE ~11.6%). Offsetting this, revenue growth has been inconsistent across cycles and cash flow is notably volatile with TTM free cash flow down ~40.9% versus the prior period.
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue93.57M91.03M81.37M75.87M62.80M72.60M
Gross Profit66.47M64.25M56.81M56.68M57.63M67.53M
EBITDA24.40M19.45M17.41M18.28M19.33M28.94M
Net Income16.11M13.97M11.47M12.10M12.52M18.28M
Balance Sheet
Total Assets1.60B1.55B1.38B1.34B1.34B1.33B
Cash, Cash Equivalents and Short-Term Investments154.98M146.21M199.25M244.21M268.73M415.41M
Total Debt56.68M63.97M65.28M116.63M94.52M40.37M
Total Liabilities1.46B1.40B1.25B1.22B1.22B1.19B
Stockholders Equity143.66M141.24M127.51M124.34M118.43M144.93M
Cash Flow
Free Cash Flow12.43M21.44M8.22M13.03M23.67M14.83M
Operating Cash Flow14.34M24.04M9.45M13.99M25.57M17.26M
Investing Cash Flow-75.14M-68.08M-28.95M-17.39M-165.67M-71.99M
Financing Cash Flow81.95M89.66M22.46M-1.45M18.41M63.55M

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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$164.91M9.8111.79%2.42%9.40%46.37%
69
Neutral
$164.13M11.368.00%1.71%-6.41%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
63
Neutral
$177.86M13.517.07%3.34%48.38%
50
Neutral
$158.61M-3.72-16.19%0.84%-8.44%-155.96%
49
Neutral
$173.46M-142.71-5.77%4.73%-15.00%-146.52%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SBFG
SB Financial Group
27.06
7.55
38.67%
BCBP
BCB Bancorp
8.80
0.94
12.02%
FGBI
First Guaranty Bancshares
9.56
1.55
19.41%
MNSB
MainStreet Bancshares
24.06
4.72
24.41%
ECBK
ECB Bancorp, Inc.
20.58
4.84
30.80%
BVFL
BV Financial, Inc.
21.31
6.04
39.55%

SB Financial Group Corporate Events

Dividends
SB Financial Group Announces Increased Quarterly Dividend Payment
Positive
Jul 17, 2026
On July 17, 2026, SB Financial Group, Inc. announced that its board of directors declared a quarterly cash dividend of $0.16 per common share, payable on August 28, 2026 to shareholders of record as of August 14, 2026. The move reflects the compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 24, 2026