SB Financial Group's Q4 2024: Conflicting Signals on Mortgage Production, Loan Growth, and Credit Quality

Revenue and Loan Growth:
- SB Financial Group reported net income of $3.6 million, with a diluted EPS of $0.55 for Q4 2024, with loan growth for the quarter at $46.5 million, up 4.7%.
- Looping to full year, the loan portfolio ended at $1.05 billion, marking a recovery from a challenging economic environment.
- This growth was facilitated by strong performance in the Columbus region and strategic focus on the salable mortgage portfolio strategy.

Deposit and Mortgage Origination Trends:
- Deposits were stable at $1.15 billion, with growth driven by the state of Ohio Homebuyer Plus program.
- Mortgage originations for the quarter were $73 million, with a full-year total of $261 million, up 21% year-on-year.
- The shift towards a higher salable mortgage strategy was emphasized, focusing on the purchase market with 88% of production.

Operational Efficiency and Expense Management:
- The efficiency ratio for Q4 was 71.1%, reflecting well-controlled operating expenses despite rising funding costs.
- Total operating expenses for the year were $42.9 million, slightly above 2023 levels, highlighting disciplined expense management.

Acquisition and Strategic Expansion:
- The acquisition of Marblehead Bankcorp was completed in January 2025, expanding SB Financial's presence and strengthening its market positioning.
- This acquisition is expected to bring $22 million in new loans and approximately $50 million in additional deposits, enhancing strategic growth prospects.