SB Financial Group, Inc. (NASDAQ:SBFG) Q3 2023 Earnings Call Transcript October 31, 2023 11:00 AM ET

Company Participants

Sarah Mekus - Executive Assistant and Corporate Secretary

Mark Klein - Chairman, President and Chief Executive Officer

Anthony Cosentino - Executive Vice President and Chief Financial Officer

Steven Walz - Executive Vice President and Chief Lending Officer

Conference Call Participants

Brian Martin - Janney Montgomery Scott

Operator

Good morning, and welcome to the SB Financial Third Quarter 2023 Conference Call and Webcast. I would like to inform you that this conference call is being recorded and that all participants is in a listen only mode. We will begin with remarks by management and then open the conference up to the investment community for questions-and-answers.

I will now turn the conference over to Sara Mekus with SB Financial. Please go ahead, Sarah.

Sarah Mekus

Thank you, and good morning, everyone. I'd like to remind you that this conference call is being broadcast live over the Internet and will be archived and available on our website at ir.yourstatebank.com. Joining me today are Mark Klein, Chairman, President and CEO; Tony Cosentino, Chief Financial Officer; and Steve Walz, Chief Lending Officer.

Today's presentation may contain forward-looking information. Cautionary statements about this information, as well as reconciliations of non-GAAP financial measures are included in today's earnings release materials, as well as our SEC filings. These materials are available on our website, and we encourage participants to refer to them for a complete discussion of risk factors and forward-looking statements. These statements speak only as of the as of the date made, and SB Financial undertakes no obligation to update them.

I'll now turn the call over to Mr. Klein.

Mark Klein

Thank you, Sarah, and good morning, everyone. Welcome to our third quarter conference call and webcast. Highlights for the quarter include net income of $2.7 million, down from both the linked and prior quarters as funding costs and lower mortgage volume has impacted profitability. Pretax pre-provision return on average assets was 96 basis points with return on tangible common equity of 10.8%.

Total interest income of $14.8 million was up $3 million or 25.8% from the prior year and up $390,000 or 10.8% annualized from the linked quarter. Loan balances were higher from the linked quarter by just $4.2 million, but now risen nearly $64 million or 7% over the prior year quarter. Our expansion markets in Fort Wayne and Columbus were the catalyst, growing 29% and 15%, respectively.