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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on SBFG

SB Financial Group, Inc.'s recent performance was positively driven by its Q3 2025 earnings beat, with quarterly earnings of $0.68 per share, surpassing the Zacks Consensus Estimate of $0.62 per share. This represents a significant year-over-year increase from $0.41 per share. The company's diversified financial services, including community banking, mortgage banking, and wealth management, likely contributed to the strong earnings. Additionally, SBFG was featured on the Zacks Rank #1 (Strong Buy) list for value, income, and momentum stocks, indicating a positive outlook from analysts.

1.c. Company Highlights

2. SB Financial's 2025 Earnings: A Strong Year with Promising Outlook

SB Financial's fourth quarter and full year 2025 results demonstrated robust financial performance, with net income of $3.9 million and diluted EPS of $0.63, marking a 15% increase from the prior year quarter. The company's GAAP EPS of $2.19 for the full year represents the second-highest per-share earning performance in the last 20 years, with a 27% lift over 2024 EPS of $1.72. Notably, the actual EPS came out at $0.68, beating estimates of $0.62. Net interest income for the quarter was $12.7 million, up 17% from the fourth quarter of 2024, and 3.1% from the linked quarter. For the full year, net interest income rose to $48.4 million, a 21% increase, now representing nearly 75% of total revenue.

Publication Date: Mar -08

📋 Highlights
  • Strong EPS Growth:: Diluted EPS was $0.63 (Q4) and $2.19 (full year 2025), up 15% and 27% YoY respectively, reflecting improved profitability.
  • Net Interest Income Surge:: Q4 NII rose 17% YoY to $12.7M, with full-year NII up 21% to $48.4M, driven by a 3.51% NIM contributing ~75% of total revenue.
  • Loan and Deposit Expansion:: Quarterly loan growth was 25% annualized ($70M) and deposits grew 14% annualized ($45M), supporting balance sheet growth.
  • Robust Tangible Book Value:: Tangible book value per share increased 12.5% YoY to $18, with adjusted value at $21.44, indicating asset quality and capital strength.
  • Share Repurchase Activity:: $5.5M spent on repurchasing 283,000 shares in 2025 (40% of earnings), reflecting confidence in intrinsic value and capital allocation discipline.

Balance Sheet Growth and Asset Quality

Loan growth for the quarter was $70 million or 25% annualized, and 12.8% year-over-year. Total deposits increased by $45 million or 14% on an annualized basis, and 13% year-over-year. The company's balance sheet remains liquid, with approximately $50 million in excess liquidity and $160 million in outstanding debt capacity. Asset quality metrics remain strong, with nonperforming loans to total loans declining to 0.39%. The company's allowance for credit losses remained robust at 1.36% of total loans.

Valuation and Return Metrics

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.9, which is relatively in line with the industry, and a Dividend Yield of 2.99%, the stock appears to be fairly valued. Additionally, the Return on Equity (ROE) of 10.29% indicates a decent return on shareholders' equity. The Net Interest Margin (NIM) was 3.51%, expected to decrease by 5-7 basis points in 2026 due to higher funding costs.

Outlook and Guidance

The company expects loan volumes to climb in 2026 by low to mid-double digits, while maintaining its traditional sales level of 85%. The company's funding profile balances profitability, liquidity, and risk, with a stable deposit base and predictable behavior. The expense growth is expected to be 3.5-4%, with positive operating leverage of 1.5-2x in 2026. The company targets to drive net income to the $15 million mark for 2026, indicating a promising outlook.

Share Repurchase and Dividend

In Q4, 32,000 shares were repurchased at an average price of $21, using 40% of earnings, with a total of $283,000 shares bought back for $5.5 million in 2025. The company announced a dividend of $0.155 per share, a 2.8% yield, and 25% of earnings, demonstrating a commitment to returning capital to shareholders.

3. NewsRoom

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SB Financial Group Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

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SB Financial Group, Inc. (SBFG) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

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SB Financial Group, Inc. (SBFG) Q4 Earnings Beat Estimates

Jan -29

Source: zacks.com

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SB Financial Group (SBFG) to Release Quarterly Earnings on Thursday

Jan -22

Source: defenseworld.net

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SB Financial Group (NASDAQ:SBFG) and Norwood Financial (NASDAQ:NWFL) Head to Head Review

Jan -13

Source: defenseworld.net

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SB Financial Group, Inc. Announces Schedule for Fourth Quarter and Full Year 2025 Results

Jan -09

Source: globenewswire.com

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SB Financial Group, Inc. (NASDAQ:SBFG) Short Interest Up 29.4% in December

Dec -31

Source: defenseworld.net

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SB Financial Group (SBFG) Upgraded to Strong Buy: What Does It Mean for the Stock?

Dec -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Banking and Wealth Management Services

Expected Growth: 1.0%

SB Financial Group's 1.0% growth in Banking and Wealth Management Services is driven by increasing demand for digital banking solutions, strategic partnerships, and expansion into new markets. Additionally, the company's focus on customer experience, investment in technology, and diversified product offerings have contributed to its growth.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Wealth Management

Offers investment and wealth management services to individuals, families, and institutions.

Mortgage Banking

Provides mortgage lending services to individuals and families, including purchase and refinance options.

Treasury Management

Offers cash management and treasury management services to businesses, including account management and payment processing.

Investment Services

Provides investment products and services, including brokerage and advisory services.

Insurance Services

Offers insurance products and services, including life insurance, disability insurance, and long-term care insurance.

8. SB Financial Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SB Financial Group, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Customers

SB Financial Group, Inc. has a large customer base, but the bargaining power of customers is high due to the availability of alternative financial services providers.

Bargaining Power Of Suppliers

SB Financial Group, Inc. has a diversified supplier base, and the bargaining power of suppliers is low due to the company's significant purchasing power.

Threat Of New Entrants

The threat of new entrants in the financial services industry is moderate, as there are barriers to entry, but new fintech companies are emerging, posing a threat to traditional financial institutions like SB Financial Group, Inc.

Intensity Of Rivalry

The intensity of rivalry in the financial services industry is high, with many established players competing for market share, and SB Financial Group, Inc. must differentiate itself to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.52%
Debt Cost 3.95%
Equity Weight 49.48%
Equity Cost 7.32%
WACC 5.62%
Leverage 102.09%

11. Quality Control: SB Financial Group, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SB Financial Group

A-Score: 5.9/10

Value: 8.1

Growth: 3.9

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Camden National

A-Score: 5.7/10

Value: 6.0

Growth: 5.1

Quality: 5.2

Yield: 8.0

Momentum: 2.5

Volatility: 7.3

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Lakeland Financial

A-Score: 5.6/10

Value: 4.8

Growth: 5.6

Quality: 7.8

Yield: 5.0

Momentum: 2.5

Volatility: 8.0

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OceanFirst

A-Score: 5.5/10

Value: 5.3

Growth: 4.8

Quality: 4.7

Yield: 8.0

Momentum: 4.0

Volatility: 6.3

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First Bancshares

A-Score: 5.1/10

Value: 4.9

Growth: 4.8

Quality: 6.9

Yield: 3.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Eagle Bancorp

A-Score: 4.9/10

Value: 9.1

Growth: 4.2

Quality: 4.2

Yield: 7.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.88$

Current Price

19.88$

Potential

-0.00%

Expected Cash-Flows