SB Financial Q4 net income rises 7.8%, noninterest income falls

Overview

• Diversified financial services firm's Q4 net income rose 7.8% yr/yr

• Net interest income for Q4 increased 16.7% yr/yr

• Company's Q4 noninterest income fell 18.6% due to lower fee-based income

Outlook

• Company remains focused on prudent organic growth and expense management

• Company emphasizes diversified business model and funding profile for stability

Result Drivers

• LOAN GROWTH - SB Financial reported a 12.8% increase in loan growth, driven by strong client activity and the Marblehead acquisition

• DEPOSIT GROWTH - Deposits rose 13.4% year-over-year, supported by stable core deposit relationships and the Marblehead acquisition

• NONINTEREST INCOME DECLINE - Noninterest income fell 18.6% due to lower wealth management and mortgage loan servicing fees

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for SB Financial Group Inc is $23.00, about 5.8% above its January 28 closing price of $21.74

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXRLKwn

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