SB Financial Group, Inc. (NASDAQ:SBFG) Q1 2024 Earnings Conference Call April 19, 2024 11:00 AM ET

Company Participants

Carol Robbins - SVP & Controller
Mark Klein - Chairman, President and CEO
Anthony Cosentino - EVP and CFO
Steven Walz - EVP and Chief Lending Officer

Conference Call Participants

Brian Martin - Janney Montgomery Scott

Operator

Good morning and welcome to the SB Financial First Quarter 2024 Conference Call and Webcast. I’d like to inform you that this conference call is being recorded and that all participants are in listen-only mode. We will begin with remarks by management and then open the conference up to the investment community for questions and answers. [Operator Instructions] Please note this event is being recorded.

I will now turn the conference over to Carol Robbins with SB Financial. Please go ahead, Carol.

Carol Robbins

Thank you, Cindy. 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 material, as well as in 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 date made, and SB Financial undertakes no obligation to update them.

I will now turn the call over to Mr. Klein.

Mark Klein

Thank you, Carol, and good morning, everyone. Welcome to our first quarter 2024 conference call and webcast. Highlights for this quarter over the prior year quarter include net income of $2.4 million, down just $82,000 or 3.3% from $2.5 million. Return on average assets was 71 basis points, a marginal decrease of 2 basis points. Return on average tangible equity was 9.48%, a 79 basis point decrease.

Net interest income reached $9.2 million, influenced by the – obviously by the challenging rate environment. Loan balances saw an increase of $15.2 million or 1.6%. Deposits display stability ending the quarter of $1.11 billion reflecting a marginal increase of 2 basis points. Our efficiency in operations led to a 4.6% reduction in expenses over the prior year. Mortgage origination volume reflects our strategic adjustment to market conditions with a strong quarter sales noted a fairly challenging rate environment.