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SB Financial Group Inc (SBFG)
NASDAQ:SBFG
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SB Financial Group
(NASDAQ:SBFG)
69Neutral
SB Financial Group (SBFG) vs. S&P 500 (SPY)
Market Cap
$121.29M
Dividend Yield3.07%
Average Volume (3M)16.10K
Price to Earnings (P/E)10.8
Beta (1Y)0.45
Revenue Growth6.80%
EPS Growth-2.85%
CountryUS
Employees252
SectorFinancial
Sector Strength76
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.72
Shares Outstanding6,534,918
10 Day Avg. Volume16,785
30 Day Avg. Volume16,101
Financial Highlights & Ratios
PEG Ratio5.22
Price to Book (P/B)N/A
Price to Sales (P/S)2.43
Price to Cash Flow (P/CF)5.80
P/FCF Ratio1.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
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
19.34
Price Trends
20.51
Negative
20.93
Negative
19.19
Positive
Market Momentum
-0.55
Negative
48.77
Neutral
53.05
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 19.34 is below the 20-day moving average (MA) of 19.46, below the 50-day MA of 20.51, and above the 200-day MA of 19.19, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 53.05 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $132.74M | 13.37 | 5.68% | 3.41% | 12.17% | -3.38% | |
69 Neutral | $121.29M | 10.84 | 9.08% | 3.07% | 6.80% | -2.85% | |
63 Neutral | $12.07B | 9.35 | 8.15% | 79.57% | 12.85% | -5.13% | |
60 Neutral | $132.74M | 10.05 | 8.05% | 1.25% | 10.13% | -21.30% | |
60 Neutral | $136.44M | 14.18 | 7.00% | 4.38% | 18.48% | 2.14% | |
59 Neutral | $130.54M | 28.32 | 4.54% | 1.52% | 11.61% | -37.10% | |
54 Neutral | $144.15M | 10.77 | 7.80% | 2.62% | 5.41% | 7.23% |
* Financial Sector Average
Performance Comparison
SBFG
SB Financial Group
19.34
6.00
44.98%
CFBK
CF Bankshares
21.87
3.71
20.43%
CZWI
Citizens Community Bancorp
14.43
3.92
37.30%
EBMT
Eagle Bancorp Montana
17.02
4.65
37.59%
SFBC
Sound Financial Bancorp
50.87
12.36
32.10%
RMBI
Richmond Mutual Bancorporation
13.74
2.54
22.68%
SB Financial Group Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -6.21% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced perspective with several achievements such as a successful acquisition and loan growth. However, challenges like elevated charge-offs and increased operating expenses were also evident. The sentiment is balanced between positive growth in strategic areas and challenges in maintaining profitability.Highlights
Successful Acquisition
SB Financial successfully closed the acquisition of The Marblehead Bank, expanding presence into Ottawa County, Ohio. This acquisition is expected to bring $50+ million in deposits and $22 million in loans, contributing positively to future growth.
Strong Loan Growth
Loan growth for the quarter was $46.5 million, up 4.7%, marking the third consecutive quarter of sequential loan growth. The Columbus region contributed significantly to this growth.
Net Interest Income Increase
Net interest income totaled $10.9 million for Q4 2024, an increase of 13.7% from the prior year, reflecting higher loan balances and improved asset yields.
Improved Tangible Book Value
Tangible book value per share ended the quarter at $16, up from $14.98, marking a 7% increase.
Mortgage Business Recovery
Mortgage originations for the year totaled $261 million, a 21% increase over 2023, indicating a recovery in the mortgage business line.
Lowlights
Slight Decline in EPS
Net income for the quarter was $3.6 million, with diluted EPS of $0.55, which is down slightly compared to the prior year.
Elevated Charge-Offs
Charge-offs spiked in the quarter to 7 basis points, although they remained low for the year at just 2 basis points overall.
Increased Operating Expenses
Operating expenses were flat compared to the linked quarter but up 6.1% compared to the fourth quarter of 2023.
Noninterest Income Decline
Noninterest income for the quarter was down from $5.5 million in the prior year to $4.6 million, due to gains on the sale of securities in the previous year not recurring.
Company Guidance
During the SB Financial Fourth Quarter 2024 earnings call, executive Mark Klein highlighted several key metrics that underscored the company's performance amid a challenging economic environment. The quarter saw a net income of $3.6 million, with diluted earnings per share (EPS) of $0.55, and a tangible book value per share increase to $16, representing a 7% rise. Net interest income grew by 13.7% to $10.9 million compared to the previous year. Loan growth was strong, with a $46.5 million increase, marking a 4.7% rise for the quarter. Deposits were stable, rising by over $82 million to $1.15 billion. Mortgage originations reached $73 million for the quarter and $261 million for the year, reflecting a 21% increase over 2023. Noninterest income rose slightly to $4.6 million. Notably, SB Financial successfully completed the acquisition of The Marblehead Bank, adding $22 million in loans and $52 million in deposits to their portfolio. The quarter's efficiency ratio stood at 71.1%, with operating expenses flat to the linked quarter but up 6.1% from the previous year. Despite a slight spike in charge-offs to 7 basis points, asset quality metrics remained consistent. The company also repurchased 130,000 shares during the quarter and returned nearly $8.5 million to shareholders in 2024 through buybacks and dividends. Looking forward, SB Financial anticipates further growth in loan portfolios, particularly in the Columbus region, and plans to expand its presence in the Cincinnati and Indiana markets.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.