SB Financial Group Reports 23.7% Increase in Net Income for Q2 2025

SB Financial Group, Inc. reported a notable increase in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company achieved a net income of $3.9 million, a 23.7% increase from $3.1 million in the same period of 2024. This growth translated to diluted earnings per share of $0.60, up from $0.47 year-over-year. The increase in net income was primarily driven by a rise in interest income, which grew by $2.8 million, or 18%, compared to the previous year, despite higher interest expenses on deposits and borrowings.

In terms of overall financial health, SB Financial's total assets reached $1.5 billion as of June 30, 2025, reflecting a 7.7% increase from $1.38 billion at the end of 2024. Total loans, net of unearned income, rose to $1.09 billion, marking a 4.6% increase from the previous year-end. Deposits also saw significant growth, increasing by 8.4% to $1.25 billion. The company’s allowance for credit losses stood at $15.6 million, up from $15.1 million at the end of 2024, attributed to net charge-offs and provisions related to growth and the recent acquisition of Marblehead Bancorp.

Strategically, SB Financial completed the acquisition of Marblehead Bancorp on January 17, 2025, which is expected to enhance its market presence in Northwest Ohio. The acquisition added approximately $3.9 million in goodwill and is anticipated to generate business synergies and economies of scale. The integration of Marblehead's operations contributed to the company's revenue growth, with pro forma results indicating an additional $0.4 million in revenue for the second quarter of 2025.

Operationally, the company reported a significant increase in mortgage loan activity, with $97.9 million in loans originated during the second quarter, a 30.3% increase from the prior year. The sales of originated loans also rose by 33.1%, contributing to a total noninterest income of $5.0 million for the quarter, up from $4.4 million in 2024. The company’s net interest margin improved to 3.48% from 3.12% year-over-year, reflecting effective asset-liability management amid changing interest rates.

Looking ahead, SB Financial remains optimistic about its growth trajectory, bolstered by the Marblehead acquisition and a strong loan origination pipeline. The company anticipates continued improvement in interest income and overall financial performance, although it acknowledges potential risks related to economic conditions and market fluctuations. The management's focus on maintaining a well-capitalized position and effective liquidity management is expected to support its strategic objectives in the coming quarters.