SB Financial Group (SBFG) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $4.0 million, up 83% year-over-year, with diluted EPS of $0.64 and adjusted EPS of $0.68, reflecting strong loan and deposit growth and the Marblehead acquisition.

• Achieved 59 consecutive quarters of profitability and 13 years of increasing annual dividends.

• Results benefited from higher interest income and successful integration of Marblehead clients, with expansion into new markets.

• Maintained disciplined lending, core deposit growth, and expense management.

Financial highlights

• Net interest income rose to $12.3 million, up 21% year-over-year, with net interest margin at 3.48%.

• Total operating revenue reached $16.6 million, up 15.9% year-over-year.

• Loans grew $80.6 million (7.8%) to $1.11 billion; deposits increased $103 million (8.9%) to $1.26 billion.

• Noninterest income was $4.2 million, up 2.9% year-over-year, driven by mortgage servicing and title service fees.

• Tangible book value per share increased 4.4% to $17.21.

Outlook and guidance

• Expect continued high single-digit loan growth in 2026, funded by bond portfolio runoff, 4–5% deposit growth, and targeted wholesale borrowings.

• Margin expected to hold near 3.5% through 2026, with some headwinds from funding costs and potential Fed rate cuts.

• Mortgage volume projected to improve, with potential to reach $320–$400 million in 2026 if rates decline below 6%.

• Management remains focused on organic growth, disciplined expense management, and long-term shareholder value.

• No changes in capital classification or regulatory status are anticipated.