SB Financial Group Reports Q1 2025 Results with $2.2 Million Net Income

SB Financial Group, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $2.2 million, a decrease of 8.9% from $2.4 million in the same period last year. The diluted earnings per share were $0.33, down from $0.35 in the prior year. The decline in net income was attributed to increased interest expenses on deposits and wholesale borrowings, despite a 13.5% rise in total interest income, which reached $17.4 million compared to $15.3 million in the first quarter of 2024. The company also incurred $0.7 million in merger-related expenses due to the acquisition of Marblehead Bancorp, which was completed in January 2025.

Total assets for SB Financial increased by 8.8% to $1.5 billion as of March 31, 2025, up from $1.38 billion at the end of 2024. The company’s loan portfolio grew to $1.09 billion, reflecting a 4.0% increase, while total deposits rose by 10.3% to $1.27 billion. The allowance for credit losses was reported at $15.4 million, slightly higher than the previous quarter, driven by provisions related to the Marblehead acquisition and growth-related expenses. The company’s non-performing assets ratio stood at 0.41%, indicating stable asset quality.

In terms of operational developments, SB Financial's acquisition of Marblehead Bancorp is expected to enhance its market presence in Northwest Ohio, increasing both its deposit and loan base. The acquisition added approximately $3.9 million in goodwill and $1.7 million in intangible assets. The company aims to leverage its existing products and services to serve the new customer base acquired through this merger. Additionally, SB Financial reported a slight increase in mortgage loan sales, with $39.3 million sold in the first quarter of 2025, compared to $36.6 million in the prior year.

The company’s noninterest income for the first quarter was $4.1 million, a marginal increase from $4.0 million in the same period last year. This included contributions from wealth management and title insurance services, which saw a revenue increase of $0.13 million. However, the overall noninterest income as a percentage of average assets decreased slightly to 1.14% from 1.19% year-over-year. Total noninterest expenses rose to $12.4 million, up from $10.3 million, primarily due to the merger-related costs and the operational expenses associated with the Marblehead acquisition.

Looking ahead, SB Financial remains focused on integrating Marblehead into its operations while managing its asset quality and capital resources effectively. The company is classified as "well capitalized" under regulatory standards, with a total shareholders' equity of $131.5 million, representing 8.8% of total assets. Management anticipates that the strategic acquisition will yield synergies and enhance profitability, although it acknowledges potential risks from economic conditions and market fluctuations that could impact future performance.