SB Financial Q1 Earnings: Net Income $4.3M, Loans +8.5%, Deposits +7.9%
SB Financial Group posted Q1 net income of $4.3 million and diluted EPS of $0.69, a 99.1% and 109.1% year-over-year increase, respectively, with adjusted DEPS up 50% to $0.63. Net interest income rose 12.7% to $12.7 million, as loans grew $92.9 million and deposits increased $100.6 million.
1. First Quarter Financial Performance
SB Financial reported GAAP net income of $4.3 million for Q1 2026, more than doubling from $2.2 million a year earlier. Operating revenue rose 13.2% to $17.4 million, with net interest income up 12.7% to $12.7 million and adjusted EPS at $0.63, a 50% increase.
2. Balance Sheet Growth
Total loans grew by $92.9 million or 8.5% year-over-year, marking eight consecutive quarters of sequential loan growth. Deposits increased $100.6 million or 7.9% to $1.37 billion, supported by stable core relationships and disciplined funding costs.
3. Noninterest Income and Mortgage Banking
Noninterest income increased 14.7% to $4.7 million, driven by higher mortgage servicing fees of $928,000 and $978,000 in gains on mortgage sales. The OMSR net valuation recapture rose to $452,000 from $11,000 in Q1 2025, reflecting improved mortgage banking performance.
4. Return Metrics and Book Value
Adjusted tangible book value per share excluding AOCI reached $21.96, while tangible book value rose 16.8% to $18.45 per share. Return on average assets improved to 1.10% from 0.60%, and return on average equity jumped to 12.04% from 6.63% year-over-year.