SB Financial Group Boosts Tangible Book Value to $18.45, EPS $0.69 in Q1
SB Financial Group reported Q1 net income of $4.3M with EPS of $0.69 and tangible book value per share rose to $18.45 from $15.79. Non-performing assets held at 0.3% with delinquency at 28bp, non-interest income climbed to $4.7M, and deposit growth is expected to slow in Q2.
1. Q1 Financial Performance
SB Financial Group delivered net income of $4.3 million in Q1 2026, translating to diluted EPS of $0.69 and marking its 61st consecutive profitable quarter. Tangible book value per share increased to $18.45 from $15.79 year-over-year, underscoring sustained shareholder value creation.
2. Asset Quality and Non-Interest Income
Asset quality remained robust with non-performing assets at 0.3% of total assets and delinquency levels reduced to 28 basis points at quarter-end. Non-interest income rose to $4.7 million, driven by higher mortgage servicing fees and gains on SBA loan sales.
3. Q2 Outlook and Deposit Growth
Management anticipates a decline in deposit growth for Q2, which could pressure liquidity and elevate the loan-to-deposit ratio. A slight uptick in net interest margin is expected as loan growth accelerates, though deposit funding costs may rise from current lows.
4. Strategic Growth and Mortgage Outlook
The company is targeting high single-digit loan growth by expanding into new markets such as Angola and Napoleon and plans further expansion in Columbus by year-end. Mortgage production is forecast between $350 million and $400 million, with full-year expectations of $310 million to $325 million, supported by new loan officer hires and disciplined expense management.