SB Financial Group (SBFG) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $3.6 million, with diluted EPS of $0.55; adjusted EPS rose 16.7% over the prior quarter when excluding one-time items, though full-year net income declined 5.2% to $11.5 million.

• Completed the Marblehead Bank acquisition, expanding into Ottawa County, Ohio, and adding over $50 million in deposits and $22 million in loans, enhancing market presence and liquidity.

• Tangible book value per share increased 6.8% year-over-year to $16.00.

• Returned $8.5 million to shareholders in 2024 via buybacks and dividends, representing 74% of net income.

• Total deposits grew 7.7% to $1.15 billion; loan portfolio expanded for the third consecutive quarter.

Financial highlights

• Net interest income for Q4 was $10.9 million, up 13.7% year-over-year; full-year net interest income rose 1.7% to $39.9 million.

• Non-interest income for Q4 was $4.6 million, up 10.5% sequentially but down from $5.5 million year-over-year due to prior-year securities gains.

• Operating expenses for the year totaled $42.9 million, up slightly from 2023; Q4 noninterest expense was $11.0 million, up 6.1% year-over-year.

• Efficiency ratio for Q4 was 71.1%, improved from 76.78% in the prior quarter.

• Net interest margin improved to 3.35% in Q4, up 18 basis points sequentially.

Outlook and guidance

• Targeting $400 million in mortgage originations for 2025, up from $261 million in 2024.

• Expecting high single-digit (8%) loan growth in 2025, with $80–$90 million in new loans anticipated.

• Margin expected to gradually expand to 3.50–3.55% by Q4 2025.

• EPS accretion from Marblehead acquisition projected at $0.15–$0.20 per share in 2025.

• Management focused on leveraging momentum, strengthening financial position, and disciplined growth in 2025.