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- **Revenue Growth**: 7.8% YoY loan growth, 9% YoY deposit growth, net interest income up 21%.
- **Margin Expansion**: 3.48% net interest margin, 3.5x operating leverage, 24% payout ratio.
- **Strategic Moves**: $100 million ag lending expansion, $800 million Napoleon market pursuit, wealth management partnership.
- **Credit Strength**: 1.44% allowance coverage, 25bps NPA target, 45bps delinquency rate.
- **Mortgage Outlook**: 2026 originations targeting $320-350 million with rates below 6%.

**【Management Opening Remarks】**
- CEO Mark Klein highlighted Q3 net income of $4 million and EPS of $0.64, up 83% YoY. Loan growth of 7.8% YoY and deposit growth of $103 million (9% YoY) driven by Marblehead integration and new market entry in Napoleon, Ohio.
- Emphasized disciplined lending, core deposit growth, and expense management. Mortgage originations at $67.6 million, with pipeline strengthening as 30-year rates fall below 6%.

**【CEO Commentary】**
- Q3 net interest income up 21% YoY to $12.3 million. Loan growth of $80.6 million (7.8% YoY) across Columbus and CRE. Deposit growth of $103 million (9% YoY), with $51 million from Marblehead.
- Tangible book value per share increased 4.4% to $17.21. Mortgage servicing rights up 7%, adding $175k annual revenue. Wealth management partnership with Advisor Alpha to expand client base.
- Operating leverage improved to 3.5x, with expenses up 9.5% YoY vs 18.5% revenue growth. Mortgage originations focused on purchase (80%) and construction (7%), with minimal refinancing.

**【CFO Financial Commentary】**
- GAAP net income $420 million, Non-GAAP EPS $1.08 (vs $0.80 prior year). Net interest margin 3.48%, up 18bps YoY. Funding costs stable at 2.33%, lowest since 2024Q3.
- Fee income $4.2 million (2.9% YoY growth). Mortgage banking contribution $1.5 million, up 10% YoY. Buyback of 101k shares ($4.5 million YTD) at 115% TBV.
- Asset quality: Charge-offs 0bps, NPA 25bps target. Allowance 1.44% of loans, 345% coverage of NPAs. Delinquencies 45bps, down 1.7 million YoY.

**【Q&A Highlights】**
- **Loan Growth**: Expect $15-20 million Q4 growth, targeting $80-100 million 2026. Ag lending expansion with $100 million portfolio target. Liquidity of $75 million to fund loans at 300bps spread.
- **Margin Outlook**: 3.5% peak for 2025Q3, stable in 2026 with asset repricing offsetting funding cost increases. 75bps rate decline would reduce HELOC income by $350k annually.
- **Credit Quality**: Target NPA 25bps, reserve 1.25-1.30%. $500k-$1 million NPAs expected to resolve in 6 months. CECL modeling may limit reserve reductions.
- **Mortgage Volume**: Q4 originations $80 million, 2026 targeting $320-350 million if rates stay below 6%. Refinance mix could rise to 20% if rates stabilize.
- **Capital Allocation**: Slowing buybacks to retain capital for potential M&A. Debt refinancing consideration in 2026. Dividend yield 3.1%, payout ratio 24%.

SB Financial Group, Inc. (SBFG) Q3 2025 Earnings Call Transcript

- **EPS Growth**: 28% YoY to $0.60, driven by NII expansion and loan growth.
- **Balance Sheet Expansion**: Assets exceed $3.5 billion, with $1.5B loans and $1.5B servicing portfolio.
- **Mortgage Momentum**: $98M Q2 origination, pipeline at $34M, Indianapolis team outperforming.
- **Margin Expansion**: NIM up 36bps to 3.5%, targeting 3.70% by year-end.
- **Credit Quality**: Charge-offs <2bps, allowance coverage at 1.43%.
- **Capital Returns**: $0.15 dividend (3.16% yield), cautious M&A approach.

**【CEO Summary Section】**
- **Revenue Growth**: Net income of $3.9 million, EPS up 28% YoY to $0.60. Adjusted EPS was $0.58 after servicing rights recapture.
- **Loan & Deposit Expansion**: Loan growth of $90 million (8.9% YoY), deposits up 12% YoY ($135 million), including $51 million from Marblehead acquisition.
- **Mortgage Performance**: Origination volume of $98 million (up YoY and QoQ), pipeline at $34 million. Indianapolis team delivered strongest quarter since 2019.
- **Strategic Initiatives**: Focus on revenue diversity (NIM + fee-based), organic growth, operational excellence, and asset quality. Added to Russell 2000 Index.

**【CFO Financial Commentary】**
- **Net Interest Income (NII)**: $12.1 million (25% YoY growth), margin expanded 36bps to 3.5%.
- **Noninterest Income**: $5 million (15.1% YoY growth), driven by mortgage gains, title fees, and wealth management.
- **Expense Management**: Operating expenses down 4.5% QoQ, stable at $11.9 million vs. $10.7 million YoY.
- **Capital Returns**: Repurchased 124,000 shares ($19 avg price), dividend of $0.15 (3.16% yield, 25% payout ratio).
- **Asset Quality**: Charge-offs <2bps, NPA $6.2 million, allowance at 1.43% of loans.

**【Q&A Highlights】**
- **Mortgage Outlook**: Optimistic for $300+ million annual origination, 83% sale ratio, 2.13% gain on sale yield. Potential for $400+ million if rates drop.
- **Loan Pipeline**: $40 million undrawn CRE loans to fund over next 12-18 months. Columbus CRE growth driven by 4 lenders.
- **Net Interest Margin (NIM)**: Expect 10bps expansion to 3.70% by year-end, supported by $100-150 million annual loan repricing.
- **Credit Resolution**: $1.5 million NPA expected to resolve in Q3, reducing provision expense.
- **Capital Allocation**: Slowing buybacks to explore M&A opportunities, maintaining capital above 10%.


SB Financial (SBFG)-25 Jul 25-2025 Q2 Earnings call transcript

- **Record Q1 Growth**: 27% EPS increase, 23% net interest income rise, $97 million loan growth. 
- **Marblehead Synergy**: $56M low-cost deposits, $19M loan book addition. 
- **Pipeline Confidence**: $60M loan pipeline, 40% YoY origination growth. 
- **NIM Expansion**: 140bps repricing gain, 4-5bps quarterly margin growth. 
- **Mortgage Recovery**: $33M April origination, targeting $300M+ annualized. 
- **Strong Capital**: 12+ CET1 ratio, 1.41% ACL coverage.

**【CEO Summary Section】**
- **Q1 2025 Financial Highlights**: Net income of $2.7 million (EPS $0.42), up 27% YoY. Tangible book value per share increased 5.8% to $15.79. Net interest income rose 23% to $11.3 million. Loan growth of $97 million (9.8% YoY), driven by Columbus and Marblehead acquisition. Deposits grew 10% YoY to $1.27 billion, including $56 million from Marblehead.
- **Strategic Initiatives**: Mortgage origination pipeline at $50 million, targeting $400 million annual production. Digital banking officer appointed to enhance online services. Efficiency ratio improved to 76% (excluding acquisition costs). Asset quality stable with charge-offs at 3 basis points.

**【CFO Financial Commentary】**
- **Net Interest Margin (NIM)**: 3.4% for Q1, up 5 basis points from linked quarter. $90 million in loans set to reprice, adding 140 basis points to yields. Deposit cost of funds at 1.7%, down 12 basis points YoY. 
- **Balance Sheet Strength**: $1.09 billion in loans, 86% loan-to-deposit ratio. Public fund deposits contributed $119 million in linked-quarter growth but expected to moderate. Capital management includes $26.5K share buyback at $21 average price.
- **Asset Quality**: Allowance for credit losses at 1.41% of loans, covering 254% of non-performing loans. Criticized loans down 18% YoY to $7.1 million.

**【Q&A Key Takeaways】**
- **Loan Growth Outlook**: 8-10% YoY target remains, with $60 million pipeline confidence. Columbus market leading with 4 seasoned lenders. 
- **Mortgage Recovery**: April origination of $33 million suggests Q2-Q3 pipeline could exceed $100 million, targeting $300-350 million annualized. 
- **NIM Expansion**: Expect 4-5 basis points quarterly improvement, targeting 3.55-3.60% by Q4. Deposit cost reductions offsetting loan repricing. 
- **Capital Allocation**: Buyback paused at $130% of tangible book; dividend payout ratio to normalize at 30%. No immediate M&A plans beyond Marblehead integration.

SB Financial (SBFG)-2 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: 2024 mortgage originations up 21% to $261 million; Q4 loan growth 4.7%, deposit growth 82 million. 
- **Strategic Expansion**: Cincinnati market to add 6 MLOs, targeting $400 million in 2025 originations. Marblehead acquisition adds $22 million in high-yield loans. 
- **Margin Outlook**: 2025 net interest margin expected to expand to 3.50-3.55%, driven by repricing and $30 million in redeployed liquidity. 
- **Financial Discipline**: 2025 expense growth limited to 2.5-3.5%, with 74% of net income returned to shareholders in 2024.

**【CEO Summary Section】**
- **2024 Year in Review**: Delivered net income of $3.6 million (Q4) and EPS of $0.55, with loan growth of $46.5 million (4.7% QoQ) and deposit growth of $82 million YoY. Mortgage originations reached $261 million (+21% YoY). 
- **Strategic Initiatives**: Expanded into Cincinnati with $3 million in originations and added 6 MLOs. Ohio Homebuyer Plus program drove deposit growth. 2025 targets include $400 million in mortgage originations and 8%+ loan growth. 
- **Balance Sheet Management**: Reduced residential real estate loans by $10 million, focusing on salable products. 20% of loan portfolio set to reprice in 2025, supporting margin expansion. 
- **Capital Allocation**: Returned $8.5 million to shareholders via buybacks and dividends (74% of net income). Acquired Marblehead Bank for $50 million in deposits and $22 million in loans. 

**【CFO Financial Commentary】**
- **Net Interest Income**: $10.9 million (Q4, +13.7% YoY), driven by higher loan balances and stable funding costs (deposit cost of 1.78%). Full-year NII up 1.7% to $39.9 million. 
- **Noninterest Income**: $4.6 million (Q4, +10.5% QoQ), boosted by wealth management (+73% YoY) and mortgage servicing rights. Full-year noninterest income down 4% YoY but still 29.5% of total revenue. 
- **Efficiency Ratio**: 71.1% (Q4), up from 68.4% YoY, reflecting cost control amid growth investments. Operating expenses flat QoQ at $42.9 million. 
- **Asset Quality**: Non-performing loans at 53 basis points, charge-offs at 7 basis points (Q4). Allowance for credit losses at 274% coverage. 

**【Q&A Key Takeaways】**
- **2025 Mortgage Outlook**: Target $400 million in originations, up from $261 million in 2024. Cincinnati market to add 2-4 MLOs, contributing $10-11 million per MLO. 
- **Loan Pipeline**: $30 million undrawn in Columbus, with $80-90 million loan growth expected YoY. Marblehead acquisition adds $22 million in loans at 6.5-7.0% yields. 
- **Net Interest Margin**: Anticipated 3.50-3.55% by Q4 2025, driven by repricing and $30 million in redeployed liquidity. 
- **Expense Discipline**: 2025 expense growth capped at 2.5-3.5%, with focus on revenue-driven spending. Marblehead expenses minimal relative to accretion ($0.15-0.20 EPS).

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