SB Financial Group (SBFG) Q4 2025 earnings summary

Executive summary

• Achieved one of the strongest earnings quarters and years in company history, with robust execution in core and expansion markets despite industry-wide mortgage pressure.

• Fourth quarter net income was $3.9 million, with diluted EPS of $0.63, up 15% year-over-year; adjusted net income was $4.0 million and adjusted EPS $0.65, up 18.6% and 25% respectively.

• Full-year net income increased 21.8% to $14.0 million, with GAAP EPS at $2.19, up 27%, and adjusted EPS at $2.31, up 35.1%.

• Marked 60 consecutive quarters of profitability, with continued contribution from the Marblehead acquisition.

• Tangible book value per share rose 12.5% to $18, with adjusted tangible book value at $21.44.

Financial highlights

• Net interest income for Q4 was $12.7 million, up 17% year-over-year; full-year net interest income grew 21.4% to $48.5 million.

• Total operating revenue for Q4 was $16.4 million, up 6.3% year-over-year.

• Non-interest income for Q4 was $3.7 million, down 18.6% year-over-year, mainly due to lower wealth management and mortgage servicing fees; full-year non-interest income was $17.1 million.

• Operating expenses declined 2.3% from the linked quarter; full-year expense growth (excluding merger costs) was 7.7%, well below revenue growth.

• Noninterest expense for Q4 increased 2.1% year-over-year to $11.2 million, with an efficiency ratio of 68.1%.

Outlook and guidance

• Expect net interest margin to decline 5-7 basis points in 2026 due to higher funding costs.

• Mortgage production projected to grow to $310–$330 million in 2026, with potential upside to $350–$375 million if additional lenders are hired.

• Expense growth expected to be 3.5%-4% in 2026, with positive operating leverage of 1.5-2x.

• Targeting net income of $15 million for 2026.

• Management expects continued prudent organic growth, disciplined expense management, and thoughtful capital deployment to support sustainable performance and long-term shareholder value.