SB Financial Group reports $3.9 million net income for third quarter 2026

SB Financial Group, Inc. (NASDAQ: SBFG) reported GAAP net income of $3.9 million for the quarter ended September 30, 2026, a 2.5 percent decline from the $4.0 million recorded in the same period last year. The company, headquartered in Defiance, Ohio, posted diluted earnings per share of $0.63, down from $0.64 in the prior-year quarter.

Total loans reached $1.22 billion, marking the tenth consecutive quarter of expansion for the bank's loan portfolio. This figure represents an increase of $108.2 million, or 9.7 percent, compared to the third quarter of 2025. Total deposits climbed to $1.38 billion, up $120.3 million, or 9.5 percent, from the prior-year period, though they decreased by $8.3 million, or 0.6 percent, from the linked quarter.

Net interest income for the third quarter was $13.4 million, an 8.8 percent increase from $12.3 million in the third quarter of 2025. Total operating revenue rose 9.0 percent to $18.1 million, driven by gains in loan volume and noninterest income. Net interest margin expanded by two basis points to 3.50 percent.

For the nine months ended September 30, 2026, GAAP net income increased to $12.7 million, a 26.7 percent expansion from $10.1 million in the same period of the previous year. Diluted earnings per share improved by 31.1 percent to $2.04 from $1.56. Net interest income rose to $39.1 million for the nine-month period, up 9.4 percent from $35.7 million reported in the prior-year period.

Noninterest income for the third quarter was $4.7 million, up 9.6 percent from $4.2 million in the prior-year quarter. Net mortgage banking revenue reached $1.8 million, an increase of $293,000 from the prior-year period. Loan servicing fees added $946,000 for the quarter, while the OMSR valuation adjustment resulted in a recapture of $43,000 compared to a negative adjustment of $301,000 in the third quarter of 2025.

Noninterest expense expanded by 14.4 percent in the third quarter from the prior-year period. For the nine-month period, noninterest expense increased by 4.1 percent to $37.2 million from $35.8 million.

Mark A. Klein, Chairman, President and Chief Executive Officer of SB Financial Group, noted that the bottom-line results were slightly lower compared to the prior year but marked the company's 63rd consecutive quarter of profitability. He stated that performance reflected the resilience of core community banking operations and contributions from fee-based business lines that helped mitigate elevated operating expenses.

Tangible book value per common share stood at $18.65 at quarter end, up from $17.21 in the prior-year quarter.