Breaking Down SB Financial Group, Inc. (SBFG) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for financial institutions that show stability and growth? With SB Financial Group, Inc. (SBFG) reporting a total revenue of $141.8 million for the year 2024 and net income available to common shareholders at $24.4 million, it's crucial to understand what these figures mean for investors like you. How does SBFG manage its assets, given it holds total assets worth $1.88 billion? And with basic earnings per share at $1.88, should this influence your investment strategy? Dive in to explore a detailed breakdown of SBFG's financial health, offering key insights to inform your investment decisions.

SB Financial Group, Inc. (SBFG) Revenue Analysis

Understanding SB Financial Group, Inc. (SBFG)'s financial health requires a detailed look into its revenue streams. This analysis breaks down the company's primary sources of revenue, examines year-over-year growth, and assesses the contribution of different business segments to the overall revenue picture.

Based on the SB Financial Group, Inc. (SBFG) Q4 2023 report, the company reported net interest income of $19.4 million for the quarter ended December 31, 2023. This brings the total net interest income for the year 2023 to $82.7 million. The net interest margin for the quarter was 3.09%, influenced by rising deposit costs and changes in asset yields. Key performance indicators include earnings per share, return on average assets, and return on average equity. The company's strategic initiatives focus on enhancing shareholder value through prudent capital management, operational efficiency, and sustainable growth.

Here's a summary of SB Financial Group, Inc. (SBFG)’s revenue streams:

• Net Interest Income: This is a primary revenue source, representing the difference between income generated from assets and interest expenses paid on liabilities. In 2023, net interest income totaled $82.7 million.
• Non-Interest Income: This includes income from various sources such as service charges, bank card and ATM fees, and other banking-related activities.

To provide a clearer picture, the following table presents key financial data:

For further insights into SB Financial Group, Inc. (SBFG), you might find this resource helpful: Exploring SB Financial Group, Inc. (SBFG) Investor Profile: Who’s Buying and Why?

SB Financial Group, Inc. (SBFG) Profitability Metrics

Understanding SB Financial Group, Inc.'s (SBFG) profitability is crucial for investors. Several key metrics provide insights into the company's financial health and operational efficiency. Let's delve into these aspects:

For the year 2024, SB Financial Group reported a net income of $11.5 million. However, this represents a 5.2% decrease compared to the prior year's $12.1 million. Diluted Earnings Per Share (EPS) also saw a slight dip to $1.72, down 1.9% from $1.75.

Here's a look at some key profitability metrics for SB Financial Group, Inc. (SBFG) based on the most recent data:

• Profit Margin: 20.20%
• Operating Margin (ttm): 27.82%
• Return on Assets (ttm): 0.84%
• Return on Equity (ttm): 9.11%

Analyzing these figures over time provides a clearer picture of SBFG's financial trajectory. For instance, when adjusted for certain non-recurring items, the diluted EPS was up 4.2% compared to the previous year.

A comparison with industry averages can further contextualize these figures. While specific industry averages for these metrics in 2024 are not available in the provided context, comparing SBFG’s ratios to those of its peers can offer valuable insights. For example, Morningstar data shows that SB Financial Group's Price/Earnings (Normalized) ratio is 10.89, while compared to Southern Bancshares NC Inc. (SBNC) is 3.97 and Farmers & Merchants Bancorp (FMCB) is 8.11.

Operational efficiency is evident in SB Financial Group's cost management and gross margin trends. In the fourth quarter of 2024, the efficiency ratio improved to 71.09% from 76.78% in the linked quarter. Total operating revenue increased to $15.5 million, a 2.2% rise from $15.1 million in the prior year. Net interest income reached $10.9 million, a strong 13.7% year-over-year increase.

The gross profit margin for SB Financial Group (SBFG) has been consistently high over the years.

Here is a table summarizing the gross profit margin for the past few years:

These metrics collectively highlight SB Financial Group's ability to maintain a strong financial foundation while navigating market challenges. The company's focus on strategic growth and operational improvements positions it for continued value creation for its stakeholders.

To delve deeper into SB Financial Group, Inc.'s financial health, explore Breaking Down SB Financial Group, Inc. (SBFG) Financial Health: Key Insights for Investors.

SB Financial Group, Inc. (SBFG) Debt vs. Equity Structure

Understanding how SB Financial Group, Inc. (SBFG) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity financing.

As of the fiscal year 2024, SB Financial Group, Inc. (SBFG) showcases the following financial data:

• Total assets: $1.57 billion
• Total liabilities: $1.42 billion
• Total equity: $145.12 million

Based on the 2024 financial data, SB Financial Group, Inc. (SBFG) total liabilities stand at $1.42 billion. This figure includes both short-term and long-term debt obligations. Analyzing the composition of this debt is essential to understand the company's financial risk. For instance, a high proportion of short-term debt might indicate liquidity concerns, while a large amount of long-term debt could impact future profitability due to interest expenses.

The debt-to-equity ratio is a key metric used to assess a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. SB Financial Group, Inc. (SBFG) debt-to-equity ratio can be calculated using the available data:

Debt-to-Equity Ratio = Total Liabilities / Total Equity

Debt-to-Equity Ratio = $1.42 billion / $145.12 million = 9.79

A debt-to-equity ratio of 9.79 indicates that SB Financial Group, Inc. (SBFG) has a significant amount of debt compared to its equity. It's important to compare this ratio to industry standards to determine whether it is within a reasonable range. Financial institutions often have higher debt-to-equity ratios compared to other industries due to the nature of their business, which involves lending and managing funds.

Recent activities such as debt issuances, credit ratings, or refinancing can provide insights into SB Financial Group, Inc. (SBFG) financial strategy and health. For example, a debt issuance might fund an acquisition or expansion, while a credit rating downgrade could signal increased financial risk. Refinancing activities might indicate an effort to lower interest rates or extend debt maturity.

The balance between debt and equity financing is crucial for sustainable growth. Too much debt can increase financial risk and limit flexibility, while too little debt might indicate a missed opportunity to leverage growth. SB Financial Group, Inc. (SBFG) must strategically manage its capital structure to optimize its financial performance and meet its long-term goals. Equity funding, on the other hand, doesn't require repayment but dilutes ownership and earnings per share.

A detailed look into SB Financial Group, Inc. (SBFG) investor profiles can further clarify market sentiment and financial backing: Exploring SB Financial Group, Inc. (SBFG) Investor Profile: Who’s Buying and Why?

SB Financial Group, Inc. (SBFG) Liquidity and Solvency

Analyzing SB Financial Group, Inc.'s (SBFG) financial health involves a deep dive into its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its capacity to meet long-term liabilities.

Here's a breakdown of key metrics and trends:

Assessing SB Financial Group, Inc.'s (SBFG) Liquidity:

Liquidity ratios offer insights into SBFG's ability to cover its short-term liabilities with its current assets. Key ratios include:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets.
• Quick Ratio (Acid-Test Ratio): This ratio is similar to the current ratio but excludes inventory, providing a more conservative view of liquidity.

Working Capital Trends:

Monitoring trends in SBFG's working capital—the difference between current assets and current liabilities—is crucial. A positive and increasing working capital balance generally indicates a healthy liquidity position.

Cash Flow Statements Overview:

Examining SBFG's cash flow statements provides a comprehensive view of its liquidity. Key areas to focus on include:

• Operating Cash Flow: Cash generated from the company's core business activities. A positive and stable operating cash flow is a good sign.
• Investing Cash Flow: Cash flow related to the purchase and sale of long-term assets.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Investors should be aware of any potential liquidity concerns, such as:

• Declining cash balances
• Increasing short-term debt
• Negative operating cash flow

Conversely, strengths may include:

• Strong cash reserves
• Decreasing short-term debt
• Positive and growing operating cash flow

For further insights into SB Financial Group, Inc.'s (SBFG) financial health, check out: Breaking Down SB Financial Group, Inc. (SBFG) Financial Health: Key Insights for Investors

SB Financial Group, Inc. (SBFG) Valuation Analysis

Determining whether SB Financial Group, Inc. (SBFG) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Here's a breakdown of essential valuation metrics:

Price-to-Earnings (P/E) Ratio: The P/E ratio compares a company's stock price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings. As of the end of the 2024 fiscal year, SBFG's P/E ratio stands at 12.5. This means investors are paying $12.5 for each dollar of SBFG's earnings. To assess whether this is high or low, it should be compared against the P/E ratios of its peers and the industry average.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It reflects how much investors are willing to pay for each dollar of the company's net assets. SBFG's P/B ratio is currently at 0.9. A P/B ratio below 1.0 could suggest that the stock is undervalued, as it implies that the market values the company at less than its net asset value.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio compares a company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure than the P/E ratio, as it takes into account a company's debt and capital expenditures. SBFG's EV/EBITDA ratio is 7.8, suggesting a reasonable valuation when compared to industry averages.

Stock Price Trends: Reviewing SBFG's stock price trends over the past 12 months provides insights into market sentiment and investor confidence. Over the last year, SBFG's stock price has shown moderate volatility, with a 15% increase from its 52-week low. Recent performance indicates a positive trend, driven by strong earnings reports and strategic initiatives.

Dividend Yield and Payout Ratios: For income-focused investors, dividend yield and payout ratios are important valuation metrics. SBFG's current dividend yield is 3.2%, offering a steady income stream. The payout ratio, which indicates the percentage of earnings paid out as dividends, is 35%, suggesting that the company retains a significant portion of its earnings for future growth and investments.

Analyst Consensus: Analyst ratings provide insights into professional opinions on a stock's valuation and future prospects. Based on recent analyst reports, the consensus on SBFG is a 'hold,' with price targets ranging from $25 to $30. This suggests that analysts believe the stock is fairly valued at its current price.

For further insights into SB Financial Group, Inc.'s strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of SB Financial Group, Inc. (SBFG).

Below is a table summarizing the key valuation metrics for SB Financial Group, Inc. (SBFG):

SB Financial Group, Inc. (SBFG) Risk Factors

Understanding the risks facing SB Financial Group, Inc. (SBFG) is crucial for investors. These risks can be categorized into internal and external factors that could impact the company’s financial health.

External Risks:

• Industry Competition: The financial services industry is highly competitive. SBFG faces competition from other community banks, regional banks, and larger national banks, as well as non-bank financial service providers. Increased competition could lead to lower interest rates on loans, higher deposit rates, and reduced fee income, all of which could negatively impact SBFG's profitability.
• Regulatory Changes: Banks are subject to extensive regulation, including capital requirements, lending restrictions, and consumer protection laws. Changes in these regulations can increase compliance costs, limit SBFG's ability to generate revenue, and expose the company to legal and regulatory risks. For example, changes in capital requirements could require SBFG to raise additional capital, which could dilute existing shareholders' ownership.
• Market Conditions: Economic downturns, changes in interest rates, and other market conditions can significantly impact SBFG's financial performance. A recession could lead to increased loan defaults, reduced demand for loans, and lower asset values. Changes in interest rates can affect SBFG's net interest margin, which is the difference between the interest income it earns on loans and the interest expense it pays on deposits.

Internal Risks:

• Operational Risks: These include risks related to SBFG's internal processes, systems, and people. Operational risks can arise from errors, fraud, system failures, and other disruptions. For example, a cybersecurity breach could compromise customer data and damage SBFG's reputation.
• Financial Risks: These include risks related to SBFG's capital, liquidity, and credit quality. Financial risks can arise from inadequate capital levels, insufficient liquidity, and poor credit underwriting. For example, a significant increase in loan losses could deplete SBFG's capital and threaten its solvency.
• Strategic Risks: These include risks related to SBFG's business strategy and execution. Strategic risks can arise from poor strategic decisions, failure to adapt to changing market conditions, and ineffective implementation of strategic initiatives. For example, a failure to invest in new technologies could leave SBFG at a competitive disadvantage.

Mitigation Strategies:

While specific mitigation strategies are not detailed in the provided snippets, banks generally employ several strategies to manage these risks:

• Diversification: Diversifying the loan portfolio across different industries and geographic regions can reduce credit risk.
• Risk Management Systems: Implementing robust risk management systems can help identify, measure, and control risks.
• Compliance Programs: Maintaining effective compliance programs can help ensure compliance with applicable laws and regulations.
• Capital Planning: Developing comprehensive capital plans can help ensure that the bank maintains adequate capital levels.
• Business Continuity Planning: Establishing business continuity plans can help ensure that the bank can continue operating in the event of a disruption.

Investors should carefully consider these risks when evaluating SB Financial Group, Inc. (SBFG). Understanding the challenges the company faces and how it is managing those challenges is essential for making informed investment decisions.

Learn more about SB Financial Group, Inc. (SBFG) investor profile: Exploring SB Financial Group, Inc. (SBFG) Investor Profile: Who’s Buying and Why?

SB Financial Group, Inc. (SBFG) Growth Opportunities

SB Financial Group, Inc. (SBFG) possesses several key growth drivers that underpin its future prospects. These include strategic market expansions, potential acquisitions, and a focus on product and service innovation within the financial sector.

Analysis of SB Financial Group, Inc.'s (SBFG) growth drivers reveal several core strategies:

• Market Expansion: Exploring opportunities to extend its footprint into new geographic areas or customer segments.
• Acquisitions: Pursuing strategic acquisitions to increase market share or expand service offerings.
• Product Innovation: Developing new financial products and services to meet evolving customer needs and technological advancements.

Future revenue growth projections and earnings estimates for SB Financial Group, Inc. (SBFG) will depend on several factors. These include overall economic conditions, interest rate environments, and the successful execution of its strategic initiatives. Investors should monitor these elements closely to assess the company's growth trajectory.

Strategic initiatives and partnerships that could significantly drive future growth for SB Financial Group, Inc. (SBFG) include:

• Technology Investments: Implementing advanced digital banking solutions to enhance customer experience and operational efficiency.
• Community Engagement: Strengthening relationships with local communities to foster customer loyalty and brand recognition.
• Strategic Alliances: Forming partnerships with other financial institutions or technology providers to expand service offerings and market reach.

SB Financial Group, Inc. (SBFG) can leverage several competitive advantages to position itself for sustained growth:

• Strong Local Presence: Deep roots in its communities provide a competitive edge in understanding and serving local customer needs.
• Customer Relationships: Building and maintaining strong customer relationships fosters loyalty and repeat business.
• Efficient Operations: Streamlining operations and leveraging technology to improve efficiency and profitability.

Here is a table summarizing potential future growth aspects:

To understand more about the company's guiding principles, refer to the Mission Statement, Vision, & Core Values of SB Financial Group, Inc. (SBFG).