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SB Financial Group Inc (SBFG)
NASDAQ:SBFG
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SB Financial Group
(NASDAQ:SBFG)
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Rating:71Outperform
Price Target:
$21.50
▲(15.47% Upside)
SB Financial Group's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis indicates bearish momentum, but valuation metrics suggest the stock is reasonably priced. The positive earnings call further supports the company's growth prospects despite some market challenges.
SB Financial Group (SBFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$120.86M
Dividend Yield3.07%
Average Volume (3M)21.64K
Price to Earnings (P/E)10.5
Beta (1Y)0.36
Revenue Growth9.87%
EPS Growth2.62%
CountryUS
Employees262
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.58
Shares Outstanding6,330,904
10 Day Avg. Volume13,404
30 Day Avg. Volume21,639
Financial Highlights & Ratios
PEG Ratio-4.30
Price to Book (P/B)1.09
Price to Sales (P/S)1.71
P/FCF Ratio16.94
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda6.64
Forecast
1Y Price Target
$21.50Price Target Upside15.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
SB Financial Group Business Overview & Revenue Model
Company DescriptionSB Financial Group (SBFG) is a diversified financial services company that operates in various sectors, including banking, investment management, and insurance. The company provides a wide range of core products and services such as personal and commercial banking, wealth management, and insurance solutions, catering to individuals, businesses, and institutional clients. With a focus on delivering tailored financial solutions, SBFG aims to enhance the financial well-being of its customers while maintaining a commitment to innovation and excellence in service.
How the Company Makes MoneySB Financial Group generates revenue through multiple key streams. The primary source of income comes from interest earned on loans and mortgages issued to customers, which constitutes a significant portion of their banking operations. Additionally, the company earns fees from investment management services, including asset management and advisory fees, as well as commissions from insurance products sold. SBFG also benefits from transaction fees related to banking services such as account maintenance and wire transfers. Strategic partnerships with financial institutions and technology providers further enhance its revenue potential by enabling the company to offer innovative financial products and services. Overall, SBFG's diverse revenue model allows for stable income generation across different market conditions.
SB Financial Group Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in income, loans, and deposits. There were notable successes in revenue and margin expansion, as well as cost management and asset quality. However, there were some challenges, including a slight decline in deposits from the linked quarter and competition in the loan market. Overall, the positive aspects significantly outweighed the challenges.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net income for Q2 2025 was $3.9 million, with diluted earnings per share of $0.60, a 28% increase compared to the prior year quarter. Tangible book value per share increased by 7.7% to $16.44.
Loan and Deposit Growth
Loan growth for the quarter was approximately $90 million, up 8.9% from the prior year. Deposits grew by over 12%, including $51 million from the Marblehead acquisition, which remained nearly 100% intact.
Revenue and Margin Expansion
Net interest income totaled $12.1 million, an increase of over 25% from Q2 of the previous year. Net interest margin increased by 36 basis points to nearly 3.5%.
Mortgage and Noninterest Income Growth
Mortgage originations were just short of $98 million for the quarter, with a strong pipeline of $34 million. Noninterest income increased by 15.1% from the prior year quarter, driven by gains on mortgage loans and title services.
Operational and Asset Quality Excellence
Operating expenses decreased by approximately 4.5% from the linked quarter. Charge-offs returned to less than 2 basis points, with nonperforming assets totaling $6.2 million.
Negative Updates
Slight Decline in Deposits from Linked Quarter
Deposits declined by $21 million from the linked quarter due to the distribution of seasonal public fund balances.
Challenges in Wealth Management Division
Market volatility and unexpected relationship changes affected the net asset growth in the Wealth Management division.
Competitive Loan Environment
Despite strong loan growth, competition remains stiff, particularly in the Columbus market, impacting C&I loan growth.
Company Guidance
During the second quarter of 2025, SB Financial reported a net income of $3.9 million, with diluted earnings per share rising to $0.60, marking a 28% increase from the prior year. The company achieved a tangible book value per share of $16.44, up 7.7% from the previous year, and net interest income of $12.1 million, reflecting a 25% increase from the second quarter of 2024. Loan growth was robust at approximately $90 million, an 8.9% increase, while deposits grew by over 12%, bolstered by the Marblehead acquisition. Assets under management exceeded $3.5 billion, showcasing a diversified revenue stream. Mortgage originations were strong at nearly $98 million, and noninterest income rose by 15.1% to $5 million. Operating expenses decreased by 4.5% from the linked quarter, and charge-off levels were below 2 basis points, indicating stable asset quality. The company's net interest margin improved by 36 basis points to nearly 3.5%, driven by effective management of funding costs and loan growth. SB Financial also announced a dividend of $0.15 per share, maintaining a 25% payout of earnings.SB Financial Group Financial Statement Overview
Summary
SB Financial Group demonstrates solid financial performance with consistent revenue growth, strong profitability, and efficient cash flow management. The moderate leverage and robust return on equity highlight financial strength, though equity reliance is relatively low.Income Statement
SB Financial Group's TTM revenue growth rate is steady at 2.73%, with gross profit margin at 70.21% and net profit margin at 13.47%, indicating strong profitability. The EBIT margin is 16.26% and EBITDA margin is 20.62%, both reflecting efficient operations. The steady growth and healthy margins suggest solid financial performance, although EBIT has slightly decreased over the period.78
Positive
Balance Sheet
The debt-to-equity ratio is 0.50, showing moderate leverage. The equity ratio of 8.76% suggests a low reliance on equity for asset financing. Return on equity is robust at 8.56%, indicating effective use of shareholder funds to generate profits. The balance sheet reflects stable financial health, with manageable debt levels and good ROE, though equity reliance is lower than ideal.71
Positive
Cash Flow
Free cash flow grew by 68.50%, showcasing strong cash generation capability. The operating cash flow to net income ratio is 1.41, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is 1.23, further highlighting effective cash management. Overall, cash flow metrics indicate strong liquidity and efficient cash operations, supporting financial stability.74
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.07M | 81.37M | 75.87M | 62.80M | 72.60M | 72.73M |
| Gross Profit | 61.22M | 56.81M | 56.68M | 57.63M | 67.53M | 61.53M |
| EBITDA | 18.75M | 17.41M | 18.28M | 19.33M | 28.94M | 25.18M |
| Net Income | 12.00M | 11.47M | 12.10M | 12.52M | 18.28M | 14.94M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.38B | 1.34B | 1.34B | 1.33B | 1.26B |
| Cash, Cash Equivalents and Short-Term Investments | 246.84M | 199.25M | 244.21M | 268.73M | 415.41M | 295.92M |
| Total Debt | 80.67M | 65.28M | 116.63M | 94.52M | 40.37M | 28.19M |
| Total Liabilities | 1.35B | 1.25B | 1.22B | 1.22B | 1.19B | 1.11B |
| Stockholders Equity | 133.65M | 127.51M | 124.34M | 118.43M | 144.93M | 142.92M |
Cash Flow | ||||||
| Free Cash Flow | 10.53M | 8.22M | 13.03M | 23.67M | 14.83M | 21.93M |
| Operating Cash Flow | 12.65M | 9.45M | 13.99M | 25.57M | 17.26M | 23.91M |
| Investing Cash Flow | -25.45M | -28.95M | -17.39M | -165.67M | -71.99M | -57.22M |
| Financing Cash Flow | 70.28M | 22.46M | -1.45M | 18.41M | 63.55M | 146.94M |
SB Financial Group Technical Analysis
Negative
18.62
Price Trends
20.52
Negative
19.64
Negative
19.94
Negative
Market Momentum
-0.51
Positive
31.42
Neutral
9.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBFG, the sentiment is Negative. The current price of 18.62 is below the 20-day moving average (MA) of 19.96, below the 50-day MA of 20.52, and below the 200-day MA of 19.94, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 31.42 is Neutral, neither overbought nor oversold. The STOCH value of 9.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $135.27M | 10.57 | 7.19% | 3.37% | 6.74% | 49.28% | |
74 Outperform | $114.74M | 12.46 | 13.63% | 5.74% | 11.90% | -8.37% | |
71 Outperform | $120.86M | 10.45 | 9.23% | 3.07% | 9.87% | 2.62% | |
68 Neutral | $153.50M | 11.63 | 11.40% | 2.62% | 12.43% | 9.45% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
56 Neutral | $118.32M | 24.48 | 1.91% | 1.02% | 26.46% | ― | |
55 Neutral | $148.34M | ― | -82.98% | ― | -11.96% | -500.26% |
* Financial Sector Average
SBFG
SB Financial Group
18.62
-0.52
-2.72%
EBMT
Eagle Bancorp Montana
16.98
1.66
10.84%
FCAP
First Capital
43.75
8.65
24.64%
PNBK
Patriot National Bancorp
1.30
-0.38
-22.62%
UNB
Union Bankshares
24.50
-0.26
-1.05%
SRBK
SR Bancorp, Inc.
14.67
3.68
33.48%
SB Financial Group Corporate Events
Dividends
SB Financial Group Announces Increased Quarterly Dividend
Positive
Jul 21, 2025
On July 21, 2025, SB Financial Group announced a quarterly cash dividend of $0.15 per common share, payable on August 29, 2025, to shareholders of record as of August 15, 2025. This dividend represents a 7% increase over the previous year and reflects a 3.1% yield, indicating the company’s commitment to returning value to shareholders and its stable financial performance.
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.