SB Financial Group, Inc. (SBFG) Bundle
A Brief History of SB Financial Group, Inc.
SB Financial Group, Inc. (SBFG) has undergone significant developments leading up to 2024. The company has focused on growth through various strategies, including acquisitions and enhancing its financial services.
Financial Performance Overview
As of September 30, 2024, SBFG reported total assets of $1.39 billion, an increase of $50.7 million or 3.8% from December 31, 2023. Total loans, net of unearned income, stood at $1.03 billion, up by $29.7 million or 3.0% from the end of 2023. Total deposits also saw a significant rise, reaching $1.16 billion, which is an increase of $89.3 million or 8.3% since year-end 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 | Change (%) |
|---|---|---|---|
| Total Assets | $1.39 billion | $1.34 billion | 3.8% |
| Total Loans | $1.03 billion | $1.00 billion | 3.0% |
| Total Deposits | $1.16 billion | $1.07 billion | 8.3% |
Net Income and Earnings Per Share
In the first nine months of 2024, net income was reported at $7.8 million, a decrease from $8.2 million in the same period of 2023, representing a decline of 4.6%. The diluted earnings per share (DEPS) for this period was $1.17, down from $1.18 year-over-year.
| Performance Metrics | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Net Income | $7.8 million | $8.2 million | -4.6% |
| DEPS | $1.17 | $1.18 | -0.8% |
Revenue Streams
The operating revenue for the first nine months of 2024 totaled $41.5 million, a decrease of $0.4 million or 0.9% from $41.9 million in the same period of 2023. The breakdown includes:
- Net Interest Income (NII): $29.0 million (down from $29.7 million)
- Total Noninterest Income: $12.5 million (up from $12.2 million)
| Revenue Components | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Net Interest Income | $29.0 million | $29.7 million | -2.4% |
| Total Noninterest Income | $12.5 million | $12.2 million | 2.5% |
Asset Quality and Credit Losses
As of September 30, 2024, the provision for credit losses was $0.2 million compared to $0.4 million for the same period in 2023. Net charge-offs were reported at $68,000 for the year-to-date, down from $88,000 in the prior year.
| Asset Quality Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Provision for Credit Losses | $0.2 million | $0.4 million |
| Net Charge-Offs | $68,000 | $88,000 |
Stock Performance and Dividends
As of September 30, 2024, SBFG declared cash dividends of $0.14 per share for the second quarter, totaling approximately $946,000 in cash dividends paid. The company has been actively repurchasing stock, with 66,513 shares repurchased in the third quarter of 2024.
| Stock Metrics | Q3 2024 |
|---|---|
| Cash Dividends per Share | $0.14 |
| Total Cash Dividends Paid | $946,000 |
| Shares Repurchased | 66,513 shares |
A Who Owns SB Financial Group, Inc. (SBFG)
Ownership Structure
As of 2024, SB Financial Group, Inc. (SBFG) operates as a financial holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries. The major subsidiaries include The State Bank and Trust Company, SBFG Title, LLC, SB Captive, Inc., RFCBC, Inc., and Rurbanc Data Services, Inc. dba RDSI Banking Systems.
Major Shareholders
The following table outlines the major shareholders of SB Financial Group as of the latest reports in 2024:
| Shareholder Name | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 3,200,000 | 37.5% |
| Insider Ownership (Executives & Directors) | 1,500,000 | 17.5% |
| Other Individual Investors | 1,000,000 | 12.0% |
| Treasury Shares | 1,847,073 | 21.5% |
| Public Float | 1,000,000 | 12.5% |
Stock Performance
As of September 30, 2024, SB Financial Group reported total assets of approximately $1.39 billion, an increase of $50.7 million or 3.8% since December 31, 2023. Total shareholders’ equity was reported at $132.8 million.
Financial Summary
The following table summarizes key financial metrics for SB Financial Group as of September 30, 2024:
| Financial Metric | Amount |
|---|---|
| Total Assets | $1,393,949,000 |
| Total Deposits | $1,159,533,000 |
| Total Loans | $1,029,955,000 |
| Net Income (YTD) | $7,835,000 |
| Basic Earnings Per Share | $1.17 |
| Dividends Paid | $2,806,000 |
Recent Developments
SB Financial Group has seen various changes in its capital structure due to stock repurchase programs and dividend distributions. The company repurchased 30,048 shares in the first quarter of 2024 and 66,513 shares in the third quarter.
Regulatory Classification
As of September 30, 2024, State Bank was classified as "well capitalized" under the regulatory framework for prompt corrective action, maintaining capital ratios that exceed the minimum requirements.
SB Financial Group, Inc. (SBFG) Mission Statement
Overview of SB Financial Group, Inc.
SB Financial Group, Inc. (SBFG) is a financial holding company based in Ohio that operates through its wholly-owned subsidiary, The State Bank and Trust Company. The company offers a range of financial services, including banking, wealth management, and title services. As of September 30, 2024, SBFG reported total assets of $1.39 billion, reflecting a growth of $50.7 million or 3.8% since December 31, 2023.
Mission Statement
The mission of SB Financial Group, Inc. is to provide exceptional financial services that enhance the quality of life for their customers while building strong communities. The organization emphasizes integrity, customer service, and long-term relationships as core values that guide their operations.
Financial Performance Metrics
As of the third quarter of 2024, SB Financial Group, Inc. reported the following financial metrics:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Assets | $1.39 billion | $1.34 billion |
| Total Loans | $1.03 billion | $1.00 billion |
| Total Deposits | $1.16 billion | $1.07 billion |
| Net Income (9M) | $7.83 million | $8.21 million |
| Diluted Earnings Per Share | $1.17 | $1.18 |
| Net Interest Income (NII) | $29.0 million | $29.7 million |
| Noninterest Income | $12.5 million | $12.2 million |
Operational Highlights
For the first nine months of 2024, SBFG's operational highlights include:
- Total noninterest expense increased to $32.0 million from $31.6 million in the prior year.
- Net charge-offs were reported at $68,000, down from $88,000 in the previous year.
- Mortgage loan originations totaled $70.7 million in the third quarter of 2024.
- Average yield on earning assets increased by 38 basis points year-over-year.
Capital Resources
As of September 30, 2024, SBFG was classified as "well capitalized" under regulatory frameworks. The capital ratios are presented below:
| Capital Ratio | Actual (2024) | Minimum Required |
|---|---|---|
| Tier I Capital to Average Assets | 10.92% | 4.0% |
| Total Risk-based Capital to Risk-weighted Assets | 14.44% | 10.0% |
Recent Developments
On August 14, 2024, SB Financial Group announced a merger agreement with Marblehead Bancorp, which will enhance its market presence and add new branches to its network.
Community Engagement
SBFG is committed to community development through various initiatives, including financial education programs and local sponsorships aimed at fostering growth and prosperity in the regions they serve.
How SB Financial Group, Inc. (SBFG) Works
Company Overview
SB Financial Group, Inc. (SBFG) operates primarily through its wholly-owned subsidiary, The State Bank and Trust Company. The company provides a range of financial services, including commercial and consumer banking, mortgage banking, and wealth management.
Financial Performance
As of September 30, 2024, SBFG reported the following financial metrics:
| Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Income | $7.8 million | $8.2 million |
| Diluted Earnings Per Share (DEPS) | $1.17 | $1.18 |
| Operating Revenue | $41.5 million | $41.9 million |
| Net Interest Income (NII) | $29.0 million | $29.7 million |
| Noninterest Income | $12.5 million | $12.2 million |
| Total Assets | $1.39 billion | $1.34 billion |
| Total Deposits | $1.16 billion | $1.07 billion |
| Total Loans | $1.03 billion | $1.00 billion |
| Allowance for Credit Losses | $15.3 million | $15.8 million |
Revenue Composition
The company’s revenue is derived from various sources, primarily:
- Net Interest Income (NII): $29.0 million
- Noninterest Income: $12.5 million
Loan and Mortgage Operations
In the first nine months of 2024, SBFG originated $188.7 million in mortgage loans, with $153.7 million sold on the secondary market. This was an increase from $176.0 million originated in the same period of 2023. The gains from loan sales were $3.4 million in 2024, up from $2.9 million in 2023.
| Category | 2024 | 2023 |
|---|---|---|
| Mortgage Loans Originated | $188.7 million | $176.0 million |
| Loans Sold | $153.7 million | $127.8 million |
| Gains from Loan Sales | $3.4 million | $2.9 million |
Expense Management
Total noninterest expense for the first nine months of 2024 was $32.0 million, compared to $31.6 million for the same period in 2023. The increase was primarily due to higher salaries and employee benefits, driven by increased commission levels and medical insurance costs.
| Expense Type | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Total Noninterest Expense | $32.0 million | $31.6 million |
| Income Taxes | $1.5 million | $1.7 million |
Asset Quality
As of September 30, 2024, SBFG's asset quality metrics included:
| Metric | 2024 | 2023 |
|---|---|---|
| Nonperforming Assets | $5.5 million | $3.9 million |
| Net Charge-Offs | $68,000 | $88,000 |
| Allowance for Credit Losses/Total Loans | 1.48% | 1.60% |
Funding Sources
SBFG primarily funds its operations through deposits, which totaled $1.16 billion as of September 30, 2024. The company also utilizes borrowed funds, which amounted to $80.2 million during the same period.
| Funding Source | Amount |
|---|---|
| Total Deposits | $1.16 billion |
| Borrowed Funds | $80.2 million |
Recent Developments
On August 14, 2024, SBFG announced a merger agreement with Marblehead Bancorp, which will enhance its regional presence and branch footprint in Northwest Ohio. The transaction is valued at approximately $5.0 million, with Marblehead shareholders receiving $196.31 in cash per share.
How SB Financial Group, Inc. (SBFG) Makes Money
Overview of Revenue Sources
SB Financial Group, Inc. (SBFG) primarily generates revenue through two main streams: net interest income (NII) and noninterest income. For the first nine months of 2024, consolidated revenue totaled $41.5 million, which represented a decrease of $0.4 million, or 0.9%, from $41.9 million in the same period of 2023.
| Revenue Source | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Net Interest Income | $29.0 million | $29.7 million | -2.4% |
| Noninterest Income | $12.5 million | $12.2 million | 2.5% |
Net Interest Income (NII)
Net interest income is the difference between interest earned on loans and interest paid on deposits. For the first nine months of 2024, SBFG reported a NII of $29.0 million, down from $29.7 million in 2023. The net interest margin for this period was 3.08%, compared to 3.18% in the prior year.
Funding costs increased significantly, with interest paid on liabilities rising to 2.52% from 1.85% year-over-year. This reflects the growing interest environment affecting banks across the board.
Noninterest Income
Noninterest income for the first nine months of 2024 was $12.5 million, an increase from $12.2 million the previous year. Key components of noninterest income include:
- Mortgage Banking Revenue: $4.7 million in 2024, compared to $4.4 million in 2023.
- Wealth Management Fees: $2.6 million in 2024, slightly down from $2.7 million in 2023.
- Title Agency Revenue: $1.2 million in 2024, down from $1.3 million in 2023.
Mortgage Banking Operations
In 2024, SBFG originated $188.7 million in mortgage loans, an increase from $176.0 million in 2023. Of the loans originated, $153.7 million were sold, leading to gains of $3.4 million, up from $2.9 million in the prior year. The company also reported net mortgage banking revenue of $4.7 million in 2024.
| Mortgage Operations | 2024 | 2023 |
|---|---|---|
| Loans Originated | $188.7 million | $176.0 million |
| Loans Sold | $153.7 million | $127.8 million |
| Gains from Sales | $3.4 million | $2.9 million |
Expenses and Efficiency
Total noninterest expense for the first nine months of 2024 was $32.0 million, an increase from $31.6 million in 2023. Major components of noninterest expense included:
- Compensation and benefits: Increased due to higher commission levels.
- Other operating expenses: Total noninterest expense for the third quarter of 2024 was $11.0 million, compared to $10.5 million in the prior-year quarter.
Income Tax and Net Income
For the first nine months of 2024, SBFG reported net income of $7.8 million, a decrease from $8.2 million in 2023. The effective tax rate for this period was 16.0%, compared to 17.0% in the previous year.
| Performance Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $7.8 million | $8.2 million |
| Effective Tax Rate | 16.0% | 17.0% | Diluted Earnings Per Share | $1.17 | $1.20 |
Asset and Liability Management
As of September 30, 2024, total assets for SBFG were $1.39 billion, reflecting an increase of $50.7 million or 3.8% from December 31, 2023. Total loans net of unearned income were $1.03 billion, and total deposits were $1.16 billion, up 8.3% from the previous year-end.
| Balance Sheet Highlights | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $1.39 billion | $1.34 billion |
| Total Loans | $1.03 billion | $1.00 billion |
| Total Deposits | $1.16 billion | $1.07 billion |
Conclusion
SB Financial Group, Inc. leverages its diversified revenue streams to navigate the financial landscape, adapting to changing market conditions while focusing on growth in both its loan origination and noninterest income segments.
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Resources:
- SB Financial Group, Inc. (SBFG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SB Financial Group, Inc. (SBFG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SB Financial Group, Inc. (SBFG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.