SB Financial Group Files Q2 2024 10-Q

TL;DR

**SB FINANCIAL GROUP (SBFG) FILED ITS Q2 10-Q. CHECK FOR KEY FINANCIALS.**

AI Summary

SB Financial Group, Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, incorporated in Ohio with its principal executive offices in Defiance, Ohio, operates within the state commercial banks sector. This filing provides an update on the company's financial performance and operations for the second quarter of 2024.

Why It Matters

This 10-Q filing provides investors and analysts with crucial financial data and operational updates for SB Financial Group, Inc. during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures, not indicating any immediate or unusual risks.

Key Players & Entities

• SB FINANCIAL GROUP, INC. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• Ohio (location) — State of incorporation
• 401 Clinton Street, Defiance, Ohio 43512 (location) — Principal executive offices address
• RURBAN FINANCIAL CORP (company) — Former company name

FAQ

Filing Documents

• ea0210654-10q_sbfinancial.htm (10-Q) — 1820KB
• ea021065401ex31-1_sbfinan.htm (EX-31.1) — 10KB
• ea021065401ex31-2_sbfinan.htm (EX-31.2) — 10KB
• ea021065401ex32-1_sbfinan.htm (EX-32.1) — 4KB
• ea021065401ex32-2_sbfinan.htm (EX-32.2) — 4KB
• 0001213900-24-066473.txt ( ) — 10851KB
• sbfg-20240630.xsd (EX-101.SCH) — 95KB
• sbfg-20240630_cal.xml (EX-101.CAL) — 62KB
• sbfg-20240630_def.xml (EX-101.DEF) — 365KB
• sbfg-20240630_lab.xml (EX-101.LAB) — 692KB
• sbfg-20240630_pre.xml (EX-101.PRE) — 371KB
• ea0210654-10q_sbfinancial_htm.xml (XML) — 2416KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 42

– OTHER INFORMATION

PART II – OTHER INFORMATION 43 Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults Upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 44 Item 6. Exhibits 44

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements SB Financial Group, Inc. Condensed Consolidated Balance Sheets ($ in thousands) June 2024 December (unaudited) 2023 Assets Cash and due from banks $ 21,983 $ 22,965 Interest bearing time deposits 2,417 1,535 Available-for-sale securities 207,856 219,708 Loans held for sale 7,864 2,525 Loans, net of unearned income 1,005,390 1,000,212 Allowance for credit losses ( 15,612 ) ( 15,786 ) Premises and equipment, net 20,860 21,378 Federal Reserve and Federal Home Loan Bank Stock, at cost 5,204 7,279 Foreclosed assets and other assets held for sale, net 510 511 Interest receivable 4,818 4,657 Goodwill 23,239 23,239 Cash value of life insurance 30,294 29,121 Mortgage servicing rights 14,548 13,906 Other assets 12,815 11,999 Total assets $ 1,342,186 $ 1,343,249 Liabilities and shareholders' equity Liabilities Deposits Non interest bearing demand $ 208,244 $ 228,713 Interest bearing demand 190,857 166,413 Savings 231,855 216,965 Money market 225,650 202,605 Time deposits 258,582 255,509 Total deposits 1,115,188 1,070,205 Repurchase agreements 15,178 13,387 Federal Home Loan Bank advances 35,000 83,600 Trust preferred securities 10,310 10,310 Subordinated debt net of issuance costs 19,666 19,642 Interest payable 2,944 2,443 Other liabilities 18,421 19,320 Total liabilities 1,216,707 1,218,907 Commitments & Contingent Liabilities Shareholders' Equity Preferred stock, no par value; authorized 200,000 shares; 2024 - 0 shares outstanding, 2023 - 0 shares outstanding - - Common stock, no par value; 2024 - 10,500,000 shares authorized, 8,525,375 shares issued; 2023 - 10,500,000 shares authorized, 8,525,375 shares issued 61,319 61,319 Additional paid-in capital 15,195 15,124 Retained earnings 112,104 108,486 Accumulated other comprehensive loss ( 31,801 ) ( 29,831 ) Treasury stock, at cost; (2024 - 1,781

financial statements (unaudited)

financial statements (unaudited) 2 SB Financial Group, Inc. Condensed Consolidated Statements of Comprehensive Income (unaudited) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 3,113 $ 3,075 $ 5,481 $ 5,525 Other comprehensive loss Available for sale investment securities: Gross unrealized holding loss arising in the period ( 322 ) ( 4,080 ) ( 2,494 ) ( 980 ) Related tax benefit 68 857 524 206 Net effect on other comprehensive loss ( 254 ) ( 3,223 ) ( 1,970 ) ( 774 ) Total comprehensive income (loss) $ 2,859 $ ( 148 ) $ 3,511 $ 4,751 See notes to condensed consolidated financial statements (unaudited) 3 SB Financial Group, Inc. Condensed Consolidated Statements of Shareholders' Equity (unaudited) Common Additional Paid-in Retained Accumulated Other Comprehensive Treasury ($ in thousands, except per share data) Stock Capital Earnings Loss Stock Total Balance, January 1, 2024 $ 61,319 $ 15,124 $ 108,486 $ ( 29,831 ) $ ( 30,756 ) $ 124,342 Net income 2,368 2,368 Other comprehensive loss ( 1,716 ) ( 1,716 ) Cash dividends on common, $ 0.135 per share ( 917 ) ( 917 ) Restricted stock vesting ( 313 ) 313 - Repurchased stock ( 30,048 shares) ( 521 ) ( 521 ) Stock based compensation expense 167 167 Balance, March 31, 2024 $ 61,319 $ 14,978 $ 109,937 $ ( 31,547 ) $ ( 30,964 ) $ 123,723 Net income 3,113 3,113 Other comprehensive loss ( 254 ) ( 254 ) Cash dividends on common, $ 0.14 per share ( 946 ) ( 946 ) Repurchased stock ( 26,791 shares) ( 374 ) ( 374 ) Stock based compensation expense 217 217 Balance, June 30, 2024 $ 61,319 $ 15,195 $ 112,104 $ ( 31,801 ) $ ( 31,338 ) $ 125,479 Common Additional Paid-in Retained Accumulated Other Comprehensive Treasury ($ in thousands, except per share data) Stock Capital Earnings Loss Stock Total January

financial statements

financial statements. ASU No. 2016-13: Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments On January 1, 2023, the Company adopted ASU 2016-13: Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") ("ASC 326") as amended. The new accounting guidance in this ASU replaces the incurred loss methodology with an expected loss methodology, which is referred to as the current expected credit loss ("CECL") methodology. The CECL methodology is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity ("HTM") debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments that are noncancellable), and net investments in leases recognized by a lessor. The CECL methodology requires an entity to estimate credit losses over the life of an asset or off-balance sheet credit exposure. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management determines that the Company does not intend to sell and it is more likely than not, that the Company will not be required to sell the securities. 6 The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning on or after January 1, 2023, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The transition adjustment of the CECL adoption included an increase in the allowance for credit losses ("ACL") of $ 1.4 milli

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