Can SBFG sustain its earnings momentum into 2025?

**SB Financial Group's (SBFG) ability to sustain its earnings momentum into 2025 is mixed**, with several factors indicating both potential challenges and opportunities: 1. **Recent Performance**: SBFG's most recent reported quarter was for Q4 2024, with the company showing a net income of $3.64 million and total revenue of $15.45 million. The diluted EPS for the quarter was not provided, but the company's growth rates for net income, revenue, and diluted EPS are not available. |code|Ticker|Name|Date|Total Revenue|Net Income|market_code| |---|---|---|---|---|---|---| |SBFG|SBFG.O|SB Financial Group|2024 Q1|1.3131E7|2368000|186| |SBFG|SBFG.O|SB Financial Group|2024 Q2|1.4045E7|3113000|186| |SBFG|SBFG.O|SB Financial Group|2024 Q3|1.4309E7|2354000|186| |SBFG|SBFG.O|SB Financial Group|2024 Q4|1.5454E7|3635000|186| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |SBFG|SBFG.O|SB Financial Group|2024 Q1|0|0.35|186| |SBFG|SBFG.O|SB Financial Group|2024 Q2|6.818181818181812|0.47|186| |SBFG|SBFG.O|SB Financial Group|2024 Q3|-10.256410256410266|0.35|186| 2. **Growth Rates**: The company's net income growth rate for Q4 2024 was -6.39%, indicating a decline from the previous quarter. However, the total revenue growth rate was positive at 2.24%. Without the diluted EPS growth rate, it's difficult to assess the full extent of the company's earnings momentum. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |SBFG|SBFG.O|SB Financial Group|2024 Q1|-3.346938775510204|-6.140100071479628|0|186| |SBFG|SBFG.O|SB Financial Group|2024 Q2|1.2357723577235773|-1.02184637068358|6.818181818181812|186| |SBFG|SBFG.O|SB Financial Group|2024 Q3|-12.393003349460365|4.45287977224615|-10.256410256410266|186| |SBFG|SBFG.O|SB Financial Group|2024 Q4|-6.38681431882565|2.242805160436652||186| 3. **Analyst Expectations**: There are no available data on SBFG's average analyst price target or consensus rating, which makes it difficult to gauge how analysts view the company's future earnings potential. 4. **Strategic Initiatives**: SBFG has reported robust loan growth and strategic expansion through the acquisition of The Marblehead Bank. These initiatives could positively impact future earnings if integrated effectively. 5. **Dividend Sustainability**: SBFG has a history of dividend growth, with an average annual increase of 10.39% over the past five years. The company's payout ratio is 34%, which is considered sustainable. This suggests that the company has a history of generating consistent cash flow, which is a positive sign for earnings sustainability. 6. **Market Conditions**: The broader banking industry and local market conditions in Ohio, Indiana, and Michigan will play a significant role in determining SBFG's future earnings. The company's business model and services, which include community banking, mortgage banking, and wealth management, are sensitive to economic cycles and market conditions. In conclusion, while SBFG has shown some positive signs, such as strategic acquisitions and a history of dividend growth, the lack of available data on diluted EPS growth and the negative net income growth rate for Q4 2024 raise concerns about the company's ability to sustain its earnings momentum into 2025. The company's future performance will depend on its ability to integrate new acquisitions, manage economic risks, and capitalize on growth opportunities in the financial services sector.