SB Financial (SBFG) Q3 2026 Earnings Call: Loan Growth and NIM Expansion
Source Tradingkey
Key Takeaways
- SB Financial reported Q3 2026 net income of $3.9 million and diluted EPS of $0.63, compared with $4.0 million and $0.64 in the linked quarter. The quarter marked its 63rd consecutive profitable quarter.
- Total operating revenue rose 9.0% year over year to $18.1 million. Net interest income increased 8.8% to $13.4 million, while net interest margin expanded 7 basis points sequentially to 3.50%.
- Loans reached $1.22 billion, up 9.8% year over year and 2.5% sequentially. This extended sequential loan growth to 10 consecutive quarters.
- Deposits increased 9.5% year over year to $1.38 billion but declined $8.3 million sequentially following the anticipated runoff of a large wholesale relationship. Non-interest-bearing deposits rose $11.5 million sequentially to $270 million.
- Asset quality remained stable, with non-performing assets at $4.3 million, or 0.27% of total assets. Coverage of non-performing loans exceeded 500%, and net charge-offs were below 1 basis point of average loans.
- Management expects high-single-digit loan growth of roughly 8% to 8.5% in 2027. It also projects normalized expense growth of 4% to 5%, reflecting higher personnel, medical and technology costs.
Core Financial Data
| Metric | Q3 2026 | Change / context |
|---|---|---|
| Net income | $3.9 million | $4.0 million in Q2 2026 |
| Diluted EPS | $0.63 | $0.64 in Q2 2026 |
| Total operating revenue | $18.1 million | Up 9.0% year over year |
| Net interest income | $13.4 million | Up 8.8% year over year |
| Net interest margin | 3.50% | Up 7 bps sequentially and 2 bps year over year |
| Non-interest income | $4.7 million | Up 9.6% year over year; nearly 26% of operating revenue |
| Operating expenses | $13.2 million | Up 14.4% year over year |
| Total loans | $1.22 billion | Up 9.8% year over year and 2.5% sequentially |
| Total deposits | $1.38 billion | Up 9.5% year over year; down $8.3 million sequentially |
| Loan-to-deposit ratio | 88.1% | Management cited approximately $65 million of excess liquidity |
| Non-performing assets | $4.3 million | 0.27% of total assets; down 5 bps sequentially |
| Tangible book value per share | $18.65 | Up $1.44, or 8.3%, year over year |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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