Updated 3/26
SB Financial Group might not ring bells on Wall Street, but that’s kind of the point. This small-cap community bank, based in Ohio, has spent the last few decades doing what many bigger names often forget—serving its local communities, keeping its operations lean, and quietly rewarding shareholders through a reliable dividend.
With its roots deep in traditional banking, SBFG offers personal and business banking, wealth management, and mortgage services across the Midwest. It’s not flashy, and that’s exactly what income-focused investors might find refreshing. In a market where volatility gets the headlines, SBFG is quietly putting up the kind of numbers that deserve a closer look.
Recent Events
SB Financial recently closed out its fiscal year with some mixed signals. Quarterly earnings dipped slightly, with EPS seeing a 6.4% drop compared to the same quarter last year. But zoom out, and the broader picture is stable.
The company still posted a net profit margin over 20%, and return on equity came in just over 9%. These numbers are solid, especially in a rate environment that’s been tough on small banks. While not immune to sector pressures, SBFG’s management seems to have kept the ship steady.
Perhaps more telling is how the stock has performed. Over the past year, shares have climbed over 50%. That’s a sharp contrast to the general unease around smaller financial institutions, and suggests that investors are seeing something durable here.
Key Dividend Metrics 📊
💰 Dividend Yield: 2.79% (forward)
📆 Payout Ratio: 32.56%
💵 Annual Dividend: $0.58
📈 5-Year Average Yield: 2.87%
🗓️ Recent Dividend Date: February 28, 2025
📉 Trailing P/E: 12.10
Dividend Overview
SBFG’s dividend won’t turn heads at first glance—it’s not high-yield and hasn’t made dramatic hikes. But it does something just as valuable: it shows up consistently. The bank currently pays an annual dividend of $0.58 per share, translating to a 2.79% yield. That’s right around its historical average, and signals a steady approach.
The payout ratio sits just above 32%, leaving a comfortable buffer between earnings and dividend obligations. This kind of balance between rewarding shareholders and maintaining operational flexibility is what tends to keep a dividend going when conditions tighten.
Dividend Growth and Safety
Over the years, SBFG has nudged its dividend upward in small but reliable steps. It’s not chasing yield to attract attention—it’s growing its payout in tandem with earnings. That restraint might not excite short-term traders, but it builds long-term trust.
The low payout ratio plays an important role here. Even if earnings flatten or dip a bit in the near term, there’s still plenty of cushion to maintain the dividend. This isn’t a company that’s stretching to make distributions.
Add to that the 10% insider ownership, and you’ve got a leadership team with skin in the game—always a good sign when it comes to dividend discipline.
Chart Analysis
Price Action and Trend Behavior
SB Financial Group’s price chart shows a well-defined bullish move that began in late July, breaking out from a long consolidation range. The rally carried through the remainder of the year, with price action steadily hugging the rising 50-day moving average, which acted as dynamic support through much of the uptrend.
However, as 2025 began, momentum slowed. The stock peaked just below 24.50 in early February, and what followed looks like a classic distribution pattern. Price began rolling over, struggling to hold above the 50-day moving average. That eventually gave way, and we saw a deeper retracement into early March.
Despite that correction, price never threatened the 200-day moving average in any serious way, which continued rising throughout the period, signaling a healthy longer-term trend.
Volume and Participation
Volume provides some key context here. The breakout in late summer was met with a noticeable increase in buying volume—green spikes confirming demand. That uptick in participation added credibility to the rally and suggested real accumulation rather than a short-lived pop.
As the stock peaked near 24.50, we saw a sharp spike in red volume bars. That was the first clue that sellers were stepping in with some force, possibly locking in gains. The pullback that followed had lighter volume overall, though there were a few scattered sell days with larger red candles.
More recently, as price bounced back toward the 50-day moving average, volume remains modest—suggesting a cautious rebound rather than aggressive buying.
Moving Averages
The 50-day moving average had been a strong guide throughout the rally, but it’s now flattening and beginning to roll over. That shift often marks a change in short-term sentiment, where buyers are less willing to chase.
The 200-day moving average remains bullish. Price never dropped near it during the correction, which is a positive sign for those watching the long-term trend. Price is currently trading just under the 50-day and above the 200-day, placing the stock in a bit of a neutral zone. How it behaves at this juncture—whether it decisively reclaims the 50-day or rolls over—will shape the next phase of the move.
RSI and Momentum
The RSI dipped sharply in early March as the stock pulled back from its highs. It dropped into oversold territory, hitting levels near 20, which often signals exhaustion in selling pressure. Since then, RSI has rebounded steadily, approaching the mid-50s.
That recovery in RSI reflects improving momentum, though it hasn’t yet signaled strong bullish strength. It’s a tentative upturn, mirroring what we’re seeing in the price and volume action—buyers are returning, but not yet with conviction.
Candle Behavior: Recent Price Action
Looking at the last five candles on the chart, there are signs of stabilization. Wicks on the lower end of several candles suggest buyers are stepping in on dips, supporting the stock around the 21 area. These aren’t aggressive bullish candles, but they’re not breakdown candles either.
There’s one narrow-body candle in particular with a long lower wick, showing intraday selling was met with firm buying. That kind of action often reflects indecision but can be a turning point if followed by confirmation in the next few sessions.
Daily ranges are relatively tight, and while volume is low, the lack of further selling suggests some base-building might be underway.
Analyst Ratings
📈 In recent updates, SB Financial Group (SBFG) has been catching the attention of analysts, and the tone has been notably optimistic. The current consensus rating is leaning toward a Buy, supported by improved sentiment around the company’s earnings stability and long-term positioning in the regional banking sector.
🎯 The average price target across analysts is now sitting at $26.00, indicating a solid potential upside from the recent share price of $20.82. That’s a decent gap that suggests some analysts believe the stock is still undervalued despite its strong run over the past year.
📊 One notable change came through in revised earnings expectations. Over the past three months, there’s been an upward revision in earnings per share estimates for the current year—from $1.78 to $2.00. That kind of bump typically reflects growing confidence in a company’s profitability outlook, especially when coming from analysts who’ve been tracking the name closely.
💼 The reasoning behind this more positive outlook seems rooted in SBFG’s continued consistency. Analysts have pointed out that even in a challenging interest rate environment, the company has held up well. Revenue trends are stable, cost controls are effective, and there’s been no real sign of asset quality deterioration that might raise red flags.
📉 While analyst coverage on SBFG is still relatively light—common for a smaller-cap regional bank—the insights that are out there generally share a similar narrative: this is a quietly efficient operator with room to grow. The upgraded EPS projections and price targets are a reflection of that growing recognition.
📌 As always with thinly covered stocks, the sample size of analyst opinions is small, so these insights should be taken as part of a broader look at the company’s fundamentals and market environment. Still, the direction of sentiment lately is clearly tilting in SBFG’s favor.
Earnings Report Summary
Steady Numbers Despite a Softer Quarter
SB Financial wrapped up the final quarter of 2024 with earnings that came in a bit lighter than the same time last year, but the overall tone was one of resilience. Net income for the quarter landed at $3.6 million, just below the $3.88 million from the year before. That translated to $0.55 in diluted earnings per share, compared to $0.57 previously.
Revenue, however, nudged slightly higher. The company brought in $15.5 million for the quarter, up a modest 2.2% year-over-year. On the lending side, net interest income saw a solid bump—climbing nearly 14% to $10.9 million. That growth came even as the interest rate environment stayed unpredictable, which made the gain even more notable.
Full-Year Performance at a Glance
For the full year, SB Financial pulled in $11.5 million in net income, just a touch below the $12.1 million it earned in 2023. Diluted earnings per share settled at $1.72 for the year. Not a massive change, but enough to show the bank is holding steady.
Total interest income moved up to $64.3 million, a 10.7% gain from the prior year. Deposits saw healthy growth too, climbing 7.7% and hitting $1.15 billion. Tangible book value also inched up, growing nearly 7% year-over-year to $16.00 per share.
Mortgage Business Picking Up Speed
One of the standout stories this quarter was mortgage banking. Originations jumped to $72.5 million in the fourth quarter, an impressive 83% leap from the same period last year. The servicing portfolio also expanded, now sitting at $1.43 billion. That translated into $2 million in mortgage banking revenue for the quarter—a nice boost from where things stood previously.
Other Income and Expenses
Noninterest income did take a dip, landing at $4.6 million, mostly because the same quarter last year included a one-time boost from a Visa B share sale. But compared to the prior quarter, noninterest income actually rose, thanks to stronger mortgage servicing and higher fees from wealth management clients.
Operating expenses stayed flat from the prior quarter, totaling $11 million, though they were up a bit from the year before. Most of that came from rising employee costs, which the bank attributed to investment in growth. Still, the efficiency ratio improved to 71.1%, showing some progress on keeping expenses in check.
Balance Sheet and Asset Quality
By the end of the year, SB Financial’s total assets stood at $1.38 billion. Loans rose nearly 5% to just over $1.05 billion. Shareholder equity ticked up as well, reaching $127.5 million.
The bank also bought back 130,465 shares in the quarter, signaling management’s confidence and commitment to returning value to shareholders.
As for credit quality, nonperforming assets did increase, climbing to $5.5 million from $3.3 million a year earlier. That bump was tied to three specific problem loans, but management expects those to be resolved sometime in the first half of 2025. All things considered, the balance sheet remains solid.
Financial Health and Stability
Dig into the numbers, and SBFG looks healthy. The company has over $31 million in cash on hand, and while total debt stands at $81 million, there’s no red flag in terms of leverage or liquidity.
Operating cash flow is running at around $9.5 million, which covers the dividend easily. With book value per share at $19.47 and the stock recently trading near $21, the price-to-book ratio is sitting right around 1.07. That’s reasonable, especially considering the profitability metrics.
Return on assets is at 0.84%, and operating margins are a strong 27.8%. For a community bank, that kind of efficiency stands out. It points to a company that knows its niche and executes well within it.
Valuation and Stock Performance
Here’s where things get even more interesting for value-minded investors. SBFG is trading at just over 12 times earnings—a fair multiple in a market where even average performers are often priced much higher.
Its forward P/E is similar, and the price-to-book ratio still reflects a valuation that’s not stretched. That’s a good place to be for a company that’s steadily building value year after year.
Over the last year, the stock has rallied from just over $13 to more than $20, reaching as high as $24.48 along the way. That 51% climb suggests renewed interest in the name, and the technicals back it up. The 50-day and 200-day moving averages show continued upward momentum.
Risks and Considerations
Every investment has its trade-offs, and SBFG is no exception.
One key risk is interest rate sensitivity. Like most banks, SBFG’s profitability relies on the spread between deposit rates and lending rates. A shift in the rate environment—especially a rapid decline—could tighten margins.
Earnings volatility is another area to monitor. The most recent quarterly earnings showed a slight decline. It’s not a red flag on its own, but consistent negative trends could change the narrative.
The bank’s size and geographic focus also mean it’s more exposed to local economic conditions. If the Ohio or Indiana markets see a downturn, SBFG won’t have a broad national footprint to offset the impact.
Finally, with relatively low daily trading volume, the stock may not be ideal for larger investors looking for deep liquidity. That said, for those with a long-term horizon, that might be less of a concern.
Final Thoughts
SB Financial Group doesn’t make a lot of noise, but that’s part of its appeal. It’s the kind of stock that quietly compounds value—by doing the basics well, keeping risk in check, and steadily rewarding shareholders.
For dividend-focused investors, SBFG offers a compelling mix: a solid yield, a safe payout, and a stock that’s still trading at fair value. It’s not about explosive growth or speculative upside—it’s about owning a piece of a business that understands consistency.
There’s a lot to be said for that kind of reliability, especially when it comes in a package that’s been quietly outperforming.