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SB Financial Group Announces First Quarter 2025 Results

1. SBFG's Q1 2025 adjusted net income rose 23.2% year over year. 2. Successful Marblehead Bank acquisition added $56 million in deposits. 3. Total loans increased by $96.7 million, marking a 9.8% growth. 4. Deposits up 14.4% from last year, reaching $1.27 billion. 5. Tangible book value per share rose 5.8% to $15.79.

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Why Bullish?

The growth in earnings, loans, and deposits boosts SBFG's valuation. Similar past instances led to price increases in regional banks.

How important is it?

The substantial earnings growth and successful acquisition are pivotal for SBFG's trajectory. This reflects strong operational execution and market positioning.

Why Short Term?

The immediate effects of earnings reports often influence stock prices swiftly. Recent strong performance and market reactions indicate this trend.

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DEFIANCE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Over the First Quarter Prior Year Include: Adjusted net income of $2.7 million, after accounting for $0.7 million of nonrecurring merger expenses, was up 23.2 percent from the prior year adjusted net income of $2.2 million, with adjusted Diluted Earnings Per Share (“DEPS”) of $0.42. Unadjusted net income and EPS were slightly below the prior year quarter.Successful completion of the Marblehead Bank acquisition, adding $56 million of low-cost deposits and $19 million in loans.Interest income of $17.4 million increased by 13.5 percent from $15.3 million reported in the prior year quarter.Loan growth of $96.7 million, or 9.8 percent from the prior-year quarter, with growth from the linked quarter of $41.6 million. This was our fourth consecutive quarter of sequential expanding loan growth, year over year. Growth adjusted for the Marblehead acquisition would be $78.2 and $23.1 million, from the linked quarter.Deposit growth of $159.7 million, or 14.4 percent from the prior-year quarter, with growth from the linked quarter of $119.4 million. Growth adjusted for the Marblehead acquisition would be $103.7 and $63.4 million, from the linked quarter.Tangible book value (“TBV”) per share ended the quarter at $15.79 up $0.86 per share or 5.8 percent from the prior year quarter. Absent the per share dilution from the acquisition of $0.87, TBV would have been up $1.73 per share or 11.6 percent. Earnings HighlightsThree Months Ended($ in thousands, except per share & ratios)Mar. 2025Mar. 2024% ChangeOperating revenue$15,386 $13,131 17.2%Interest income 17,372  15,300 13.5%Interest expense 6,093  6,120 -0.4%Net interest income 11,279  9,180 22.9%Provision for credit losses 387  - N/MNoninterest income 4,107  3,951 3.9%Noninterest expense 12,410  10,282 20.7%Net income 2,158  2,368 -8.9%Merger adjusted Earnings per diluted share 0.42  0.33 27.3%Earnings per diluted share 0.33  0.35 -5.7%Merger adjusted Return on Avg. Assets 0.76% 0.67% 13.4%Return on average assets 0.60% 0.71% -15.5%Merger adjusted Return on Avg. Equity 8.35% 7.26% 15.0%Return on average equity 6.63% 7.72% -14.1% “Our first quarter results highlight the value of our growth strategy, even in the midst of temporary economic uncertainty,” said Mark A. Klein, Chairman, President, and CEO. “Merger adjusted net income for the quarter was $2.7 million, a 22.3 percent increase from the prior-year quarter, with the GAAP EPS of $0.33 slightly down from the prior year. The successful closing of the acquisition in the first quarter significantly strengthened our liquidity position through their low-cost deposit base and further expanded our market presence in Northern Ohio. This marks an important milestone in executing our long-term growth strategy to grow organically and through M & A.” Interest income for the quarter grew by 13.5 percent to $17.4 million compared to the previous year, driven by continued strong loan growth. Total loans increased by $96.7 million, compared to the prior year, and by $41.5 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $78.2 and $23.1 million, respectively. Deposits rose by $158.9 million, or 14.3 percent, to $1.27 billion, a result of the acquisition and a testament to the trust our clients place in us. Adjusted for the acquisition, deposit growth would have been $102.9 and $62.6 million, respectively. RESULTS OF OPERATIONS Consolidated Revenue In the first quarter of 2025, total operating revenue increased to $15.4 million, a 17.2 percent rise from $13.1 million in the prior year and a slight 0.1 percent decrease from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $11.3 million, a strong 22.9 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.7 million to $15.4 million. Deposit costs increased by 5.1 percent to $5.4 million, but were largely offset by decreases in interest expense on other funding sources, resulting in a 0.4 percent decrease in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 41 basis points year-over-year to 3.40 percent, reflecting the continued strength of our interest-earning assets and disciplined management of our funding costs. Noninterest income for the quarter increased by 3.9 percent year-over-year to $4.1 million due to improvements in gains on sale and title insurance, partially offset by decreases in mortgage loan servicing fees. Looking ahead, we remain focused on maintaining a balanced strategy that drives sustainable revenue growth while effectively managing costs, ensuring consistent value creation for our shareholders. Mortgage Loan Business Net mortgage banking revenue for the quarter reached $1.5 million, down $84,000 from the prior-year quarter. Loan servicing fees added $894,000 to revenue, reflecting an increase of $39,000 from the prior year quarter. The OMSR net valuation adjustment for the first quarter of 2025 was a positive $11,000 compared to a positive $181,000 in the first quarter of 2024.        Mortgage Banking      ($ in thousands)Mar. 2025Dec. 2024Sep. 2024Jun. 2024Mar. 2024Prior Year GrowthMortgage originations$39,775 $72,534 $70,715 $75,110 $42,912 $(3,137)Mortgage sales 39,279  62,301  61,271  55,835  36,623  2,656 Mortgage servicing portfolio 1,432,184  1,427,318  1,406,273  1,389,805  1,371,713  60,471 Mortgage servicing rights 14,965  14,868  14,357  14,548  14,191  774               Revenue      Loan servicing fees 894  886  874  862  855  39 OMSR amortization (294) (358) (370) (335) (273) (21)Net administrative fees 600  528  504  527  582  18 OMSR valuation adjustment 11  288  (465) 38  181  (170)Net loan servicing fees 611  816  39  565  763  (152)Gain on sale of mortgages 849  1,196  1,311  1,277  781  68 Mortgage banking revenue, net$ 1,460 $ 2,012 $ 1,350 $ 1,842 $ 1,544 $ (84)        Noninterest Income and Noninterest Expense "Noninterest income for the first quarter of 2025 totaled $4.1 million, up $156,000 or 3.9 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $68,000 year over year, and title insurance revenue added $131,000, reflecting the consistent benefit of our revenue diversification strategy,” Mr. Klein noted.         Noninterest Income/Noninterest Expense      ($ in thousands, except ratios) Mar. 2025Dec. 2024Sep. 2024Jun. 2024Mar. 2024Prior Year GrowthNoninterest Income (NII) $4,107 $4,557 $4,123 $4,386 $3,951 $156 NII / Total Revenue  26.7%  29.5%  28.8%  31.5%  30.1%  -3.4% NII / Average Assets  1.1%  1.3%  1.2%  1.3%  1.2%  -0.1% Total Revenue Growth  17.2%  2.2%  4.5%  -0.6%  -6.1%  23.3%                     Noninterest Expense (NIE) $12,410 $11,003 $11,003 $10,671 $10,282 $2,128 Efficiency Ratio  80.0%  71.1%  76.8%  75.9%  78.2%  1.8% NIE / Average Assets  3.4%  3.2%  3.2%  3.2%  3.1%  0.3% Net Noninterest Expense/Avg. Assets -2.3%  -1.9%  -2.0%  -1.9%  -1.9%  -0.4% Total Expense Growth  20.7%  6.1%  5.0%  3.2%  -4.6%  25.3%  Noninterest expense for the first quarter of 2025 was impacted by the one-time merger related expenses of $726,000. Adjusting for these expenses and the $300,000 in Marblehead operating expenses for the quarter, total operating costs were up just 3.5 percent from the linked quarter and 10.7 percent. “Our efficiency ratio in the first quarter of 2025 was 76.0 percent when we factor out the merger related costs, which was an improvement compared to the prior year.” stated Mr. Klein. Balance Sheet As of March 31, 2025, SB Financial reported total assets of $1.50 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $96.7 million or 9.8 percent increase year over year. Loan growth also included $18.7 million in loans added with the completion of the acquisition. Cash increased by $78.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio. Total deposits increased to $1.27 billion, growing $158.9 million or 14.3 percent year over year, including $56 million in low-cost deposits from the acquisition and $102.9 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement. Shareholders’ equity ended the quarter at $131.5 million, representing a $7.8 million increase from the prior year. This growth reflects management's commitment to enhancing shareholder value and the Company’s disciplined approach to capital management. During the first quarter, SB Financial repurchased 26,446 shares, less than previous quarters as the average price was above our target range. This reflects the Company's dedication to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth. "As we progress through the remainder of 2025, our balance sheet strength and strategic management of resources highlight our long-term strategic growth ambitions, both organically and through successful acquisitions," said Mr. Klein, Chairman, President, and CEO. "Even in the current challenging rate environment, we achieved our fourth consecutive quarter of loan growth, with balances increasing by $96.7 million from the previous year, which included $78.2 million of organic loan growth. This performance underscores the strength of our deep client relationships and our continued competitiveness in the market. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, which we will leverage to take advantage of emerging opportunities while maintaining our focus on operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economic landscape stabilizes."        Loan Balances      ($ in thousands, except ratios)Mar. 2025Dec. 2024Sep. 2024Jun. 2024Mar. 2024Annual GrowthCommercial$125,878 $124,764 $123,821 $123,287 $120,016 $5,862 % of Total 11.6%  11.9%  12.0%  12.3%  12.1%  4.9% Commercial RE 509,518  479,573  459,449  434,967  429,362  80,156 % of Total 46.8%  45.8%  44.6%  43.3%  43.3%  18.7% Agriculture 61,443  64,680  64,887  64,329  62,365  (922)% of Total 5.6%  6.2%  6.3%  6.4%  6.3%  -1.5% Residential RE 319,307  308,378  314,010  316,233  314,668  4,639 % of Total 29.3%  29.5%  30.5%  31.5%  31.7%  1.5% Consumer & Other 72,128  69,340  67,788  66,574  65,141  6,987 % of Total 6.6%  6.6%  6.6%  6.6%  6.6%  10.7% Total Loans$ 1,088,274 $ 1,046,735 $ 1,029,955 $ 1,005,390 $ 991,552 $ 96,722 Total Growth Percentage        9.8%               Deposit Balances      ($ in thousands, except ratios)Mar. 2025Dec. 2024Sep. 2024Jun. 2024Mar. 2024Annual GrowthNon-Int DDA$240,446 $232,155 $222,425 $208,244 $219,395 $21,051 % of Total 18.9%  20.1%  19.2%  18.7%  19.7%  9.6% Interest DDA 208,583  201,085  202,097  190,857  169,171  39,412 % of Total 16.4%  17.4%  17.4%  17.1%  15.2%  23.3% Savings 285,902  237,987  241,761  231,855  244,157  41,745 % of Total 22.5%  20.6%  20.8%  20.8%  21.9%  17.1% Money Market 257,013  222,161  228,182  225,650  221,362  35,651 % of Total 20.2%  19.3%  19.7%  20.2%  19.9%  16.1% Time Deposits 279,276  259,217  265,068  258,582  258,257  21,019 % of Total 22.0%  22.5%  22.9%  23.2%  23.2%  8.1% Total Deposits$ 1,271,220 $ 1,152,605 $ 1,159,533 $ 1,115,188 $ 1,112,342 $ 158,878 Total Growth Percentage        14.3%         Asset Quality As of March 31, 2025, SB Financial continued to demonstrate strong asset quality metrics. Nonperforming assets totaled $6.1 million, representing 0.41 percent of total assets, an increase of $3.2 million compared to $2.9 million or 0.22 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we continue to expect to resolve favorably in 2025. The allowance for credit losses remained strong at 1.41 percent of total loans, providing 254.4 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of our conservative approach to risk management amid the current environment. The net loan charge-offs to average loans ratio remained modest at 3 basis points, improving from 7 basis points in the prior quarter and consistent with the year-ago period, reflecting disciplined credit practices and effective collateral management. "Our asset quality metrics fully illustrate the diligence of our approach and commitment to disciplined risk management," stated Mark Klein, Chairman, President, and CEO. "While we observed a slight uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio. We remain focused on balancing our conservative approach in maintaining the integrity of our credit processes with the need to effectively manage our balance sheet for long-term growth."        Nonperforming Assets        ($ in thousands, except ratios)Mar. 2025Dec. 2024Sep. 2024Jun. 2024Mar. 2024 Annual ChangeCommercial & Agriculture$3,418 $2,927 $2,899 $2,781 $897 $2,521 % of Total Com./Ag. loans 1.82%  1.55%  1.54%  1.48%  0.49%  281.0% Commercial RE 798  807  813  475  49  749 % of Total CRE loans 0.16%  0.17%  0.18%  0.11%  0.01%  1528.6% Residential RE 1,608  1,539  1,536  1,247  1,295  313 % of Total Res. RE loans 0.50%  0.50%  0.49%  0.39%  0.41%  24.2% Consumer & Other 227  243  270  231  193  34 % of Total Con./Oth. loans 0.31%  0.35%  0.40%  0.35%  0.30%  17.6% Total Nonaccruing Loans 6,051  5,516  5,518  4,734  2,434  3,617 % of Total loans 0.56%  0.53%  0.54%  0.47%  0.25%  148.6% Foreclosed Assets and Other Assets 73  -  -  510  510  (437)Total Change (%)      -85.7% Total Nonperforming Assets$6,124 $5,516 $5,518 $5,244 $2,944 $3,180 % of Total assets 0.41%  0.40%  0.40%  0.39%  0.22%  108.02%  Webcast and Conference Call The Company will hold the first quarter 2025 earnings conference call and webcast on May 2, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website. About SB Financial Group Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”. Forward-Looking Statements Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements. Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Investor Contact Information: Mark A. KleinChairman, President and Chief Executive OfficerMark.Klein@YourStateBank.com Anthony V. CosentinoExecutive Vice President and Chief Financial OfficerTony.Cosentino@YourStateBank.com   SB FINANCIAL GROUP, INC.   CONSOLIDATED BALANCE SHEETS - (Unaudited)                   March December September June March   ($ in thousands)  2025   2024   2024   2024   2024               ASSETS           Cash and due from banks $105,145  $25,928  $49,348  $21,983  $26,602  Interest bearing time deposits  1,565   1,565   1,706   2,417   2,417  Available-for-sale securities  199,721   201,587   211,511   207,856   213,239  Loans held for sale  4,286   6,770   8,927   7,864   4,730  Loans, net of unearned income  1,088,274   1,046,735   1,029,955   1,005,390   991,552  Allowance for credit losses  (15,391)  (15,096)  (15,278)  (15,612)  (15,643) Premises and equipment, net  21,875   20,456   20,715   20,860   20,985  Federal Reserve and FHLB Stock, at cost  5,340   5,223   5,223   5,204   6,512  Foreclosed assets and other assets  73   -   -   510   510  Interest receivable  5,072   4,908   4,842   4,818   3,706  Goodwill  27,158   23,239   23,239   23,239   23,239  Cash value of life insurance  30,871   30,685   30,488   30,294   30,103  Mortgage servicing rights  14,965   14,868   14,357   14,548   14,191  Other assets  12,048   12,649   8,916   12,815   13,869                  Total assets $1,501,002  $1,379,517  $1,393,949  $1,342,186  $1,336,012                                           LIABILITIES AND SHAREHOLDERS' EQUITY           Deposits            Non interest bearing demand $240,446  $232,155  $222,425  $208,244  $219,395   Interest bearing demand  208,583   201,085   202,097   190,857   169,171   Savings  285,902   237,987   241,761   231,855   244,157   Money market  257,013   222,161   228,182   225,650   221,362   Time deposits  279,276   259,217   265,068   258,582   258,257                  Total deposits  1,271,220   1,152,605   1,159,533   1,115,188   1,112,342                Short-term borrowings  11,058   10,585   15,240   15,178   12,916  Federal Home Loan Bank advances  35,000   35,000   35,000   35,000   35,000  Trust preferred securities  10,310   10,310   10,310   10,310   10,310  Subordinated debt net of issuance costs  19,702   19,690   19,678   19,666   19,654  Interest payable  2,634   2,351   3,374   2,944   2,772  Other liabilities  19,552   21,468   17,973   18,421   19,295                  Total liabilities  1,369,476   1,252,009   1,261,108   1,216,707   1,212,289                Shareholders' Equity            Common stock  61,319   61,319   61,319   61,319   61,319   Additional paid-in capital  14,955   15,194   15,090   15,195   14,978   Retained earnings  117,397   116,186   113,515   112,104   109,938   Accumulated other comprehensive loss  (26,872)  (30,234)  (24,870)  (31,801)  (31,547)  Treasury stock  (35,273)  (34,957)  (32,213)  (31,338)  (30,965)                 Total shareholders' equity  131,526   127,508   132,841   125,479   123,723                  Total liabilities and shareholders' equity$1,501,002  $1,379,517  $1,393,949  $1,342,186  $1,336,012  SB FINANCIAL GROUP, INC.CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)             ($ in thousands, except per share & ratios) At and for the Three Months Ended                 March December September June MarchInterest income   2025  2024   2024  2024   2024  Loans           Taxable $15,244 $14,920  $14,513 $13,883  $13,547  Tax exempt  115  122   127  124   123  Securities           Taxable  1,169  1,178   1,192  1,226   1,274  Tax exempt  38  35   37  37   37  Other interest income  806  592   679  384   319                Total interest income  17,372  16,847   16,548  15,654   15,300              Interest expense            Deposits  5,352  5,169   5,568  5,208   5,090  Repurchase agreements & other  24  41   43  36   34  Federal Home Loan Bank advances 362  369   369  370   613  Trust preferred securities  160  177   187  187   188  Subordinated debt  195  194   195  194   195                Total interest expense  6,093  5,950   6,362  5,995   6,120                           Net interest income  11,279  10,897   10,186  9,659   9,180               Provision for credit losses  387  (76)  200  -   -              Net interest income after provision            for loan losses   10,892  10,973   9,986  9,659   9,180              Noninterest income           Wealth management fees  864  916   882  848   865  Customer service fees  879  842   870  875   880  Gain on sale of mtg. loans & OMSR 849  1,196   1,311  1,277   781  Mortgage loan servicing fees, net  611  816   39  565   763  Gain on sale of non-mortgage loans 15  10   20  105   10  Title insurance revenue  397  478   485  406   266  Net gain on sales of securities  -  -   -  -   -  Gain (loss) on sale of assets  -  -   200  -   -  Other  492  299   316  310   386                Total noninterest income  4,107  4,557   4,123  4,386   3,951              Noninterest expense           Salaries and employee benefits  6,237  6,185   6,057  6,009   5,352  Net occupancy expense  893  702   706  707   769  Equipment expense  1,072  1,127   1,069  1,060   1,077  Data processing fees  1,439  821   758  727   769  Professional fees  1,034  895   659  615   758  Marketing expense  165  207   241  176   197  Telephone and communication expense  139  136   128  156   105  Postage and delivery expense  137  116   145  89   97  State, local and other taxes  224  224   208  230   245  Employee expense  174  168   228  159   178  Other expenses  896  422   804  743   735                Total noninterest expense  12,410  11,003   11,003  10,671   10,282                           Income before income tax expense  2,589  4,527   3,106  3,374   2,849               Income tax expense  431  892   752  261   481              Net income    $2,158 $3,635  $2,354 $3,113  $2,368              Common share data:           Basic earnings per common share $0.33 $0.55  $0.35 $0.47  $0.35  Diluted earnings per common share$0.33 $0.55  $0.35 $0.47  $0.35              Average shares outstanding (in thousands):           Basic:  6,481  6,575   6,660  6,692   6,715  Diluted:  6,502  6,599   6,675  6,700   6,723  SB FINANCIAL GROUP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)           ($ in thousands, except per share & ratios)At and for the Three Months Ended             March December September June MarchSUMMARY OF OPERATIONS  2025   2024   2024   2024   2024            Net interest income $11,279  $10,897  $10,186  $9,659  $9,180 Tax-equivalent adjustment  41   42   44   43   43 Tax-equivalent net interest income  11,320   10,939   10,230   9,702   9,223 Provision for credit loss  387   (76)  200   -   - Noninterest income  4,107   4,557   4,123   4,386   3,951 Total operating revenue  15,386   15,454   14,309   14,045   13,131 Noninterest expense  12,410   11,003   11,003   10,671   10,282 Pre-tax pre-provision income  2,976   4,451   3,306   3,374   2,849 Net income  2,158   3,635   2,354   3,113   2,368            PER SHARE INFORMATION:          Basic earnings per share (EPS)  0.33   0.55   0.35   0.47   0.35 Diluted earnings per share  0.33   0.55   0.35   0.47   0.35 Common dividends  0.145   0.145   0.140   0.140   0.135 Book value per common share  20.29   19.64   20.05   18.80   18.46 Tangible book value per common share (TBV)  15.79   16.00   16.49   15.26   14.93 Market price per common share  20.82   20.91   20.56   14.00   13.78 Market price to TBV  131.8%  130.7%  124.7%  91.8%  92.3%Market price to trailing 12 month EPS  12.2   12.1   11.8   7.9   7.9            PERFORMANCE RATIOS:          Return on average assets (ROAA)  0.60%  1.04%  0.68%  0.93%  0.71%Pre-tax pre-provision ROAA  0.83%  1.28%  0.96%  1.01%  0.86%Return on average equity (ROE)  6.63%  11.13%  7.32%  10.16%  7.72%Return on average tangible equity  8.32%  13.58%  8.97%  12.59%  9.55%Efficiency ratio  80.00%  71.09%  76.78%  75.86%  78.17%Earning asset yield  5.23%  5.18%  5.16%  5.02%  4.97%Cost of interest bearing liabilities  2.32%  2.36%  2.53%  2.47%  2.55%Net interest margin  3.40%  3.35%  3.17%  3.10%  2.99%Tax equivalent effect  0.01%  0.01%  0.02%  0.01%  0.01%Net interest margin, tax equivalent  3.41%  3.36%  3.19%  3.11%  3.00%Non interest income/Average assets  1.14%  1.31%  1.20%  1.31%  1.19%Non interest expense/Average assets  3.45%  3.15%  3.20%  3.18%  3.08%Net noninterest expense/Average assets  -2.31%  -1.85%  -2.00%  -1.87%  -1.90%           ASSET QUALITY RATIOS:          Gross charge-offs  87   195   29   -   66 Recoveries  2   13   2   16   9 Net charge-offs  85   182   27   (16)  57 Nonperforming loans/Total loans  0.56%  0.53%  0.54%  0.47%  0.25%Nonperforming assets/Loans & OREO  0.56%  0.53%  0.54%  0.52%  0.30%Nonperforming assets/Total assets  0.41%  0.40%  0.40%  0.39%  0.22%Allowance for credit loss/Nonperforming loans  254.35%  273.68%  276.83%  329.78%  642.69%Allowance for credit loss/Total loans  1.41%  1.44%  1.48%  1.55%  1.58%Net loan charge-offs/Average loans (ann.)  0.03%  0.07%  0.01%  (0.01%)  0.02%           CAPITAL & LIQUIDITY RATIOS:          Loans/ Deposits  85.61%  90.81%  88.82%  90.15%  89.14%Equity/ Assets  8.76%  9.24%  9.53%  9.35%  9.26%Tangible equity/Tangible assets  6.96%  7.66%  7.97%  7.72%  7.63%Common equity tier 1 ratio (Bank)  12.35%  13.43%  13.19%  13.98%  13.84%           END OF PERIOD BALANCES          Total assets  1,501,002   1,379,517   1,393,949   1,342,186   1,336,012 Total loans  1,088,274   1,046,735   1,029,955   1,005,390   991,552 Deposits  1,271,220   1,152,605   1,159,533   1,115,188   1,112,342 Shareholders equity  131,526   127,508   132,841   125,479   123,723 Goodwill and intangibles  29,125   23,597   23,613   23,630   23,646 Tangible equity  102,401   103,911   109,228   101,849   100,077 Mortgage servicing portfolio  1,432,184   1,427,318   1,406,273   1,389,805   1,371,713 Wealth/Brokerage assets under care  519,158   547,697   557,724   525,713   525,517 Total assets under care  3,452,344   3,354,532   3,357,946   3,257,704   3,233,242 Full-time equivalent employees  262   252   248   249   245 Period end common shares outstanding  6,483   6,494   6,624   6,676   6,702 Market capitalization (all)  134,982   135,780   136,189   93,458   92,359            AVERAGE BALANCES          Total assets  1,459,896   1,395,473   1,376,849   1,342,847   1,333,236 Total earning assets  1,346,354   1,301,872   1,283,407   1,246,099   1,230,736 Total loans  1,076,328   1,040,580   1,018,262   1,005,018   993,310 Deposits  1,227,449   1,163,531   1,145,964   1,120,367   1,091,803 Shareholders equity  131,944   130,647   128,608   122,510   123,058 Goodwill and intangibles  26,714   23,605   23,621   23,638   23,654 Tangible equity  105,230   107,042   104,987   98,872   99,404 Average basic shares outstanding  6,481   6,575   6,660   6,692   6,715 Average diluted shares outstanding  6,502   6,599   6,675   6,700   6,723  SB FINANCIAL GROUP, INC. Rate Volume Analysis - (Unaudited) For the Three Months Ended Mar. 31, 2025 and 2024       ($ in thousands)Three Months Ended Mar. 31, 2025  Three Months Ended Mar. 31, 2024  Average Average  Average AverageAssetsBalanceInterestRate  BalanceInterestRate           Taxable securities$196,880 $1,2762.63%  $210,252 $1,4132.70% Overnight Cash 66,460  6994.27%   20,729  1803.48% Nontaxable securities 6,686  382.30%   6,445  372.30% Loans, net 1,076,328  15,3595.79%   993,310  13,6705.52%           Total earning assets 1,346,354  17,3725.23%   1,230,736  15,3004.99%           Cash and due from banks 10,339      4,512    Allowance for loan losses (15,238)     (15,830)   Premises and equipment 21,082      21,281    Other assets 97,359      92,537              Total assets$1,459,896     $1,333,236             Liabilities         Savings, MMDA and interest bearing demand$709,324 $2,9591.69%  $605,243 $2,5251.67% Time deposits 276,253  2,3933.51%   258,592  2,5653.98% Repurchase agreements & other 13,106  240.74%   15,993  340.85% Advances from Federal Home Loan Bank 35,044  3624.19%   51,030  6134.82% Trust preferred securities 10,310  1606.29%   10,310  1887.31% Subordinated debt 19,694  1954.02%   19,646  1953.98%           Total interest bearing liabilities 1,063,731  6,0932.32%   960,814  6,1202.55%           Non interest bearing demand 241,872  -    227,968  -            Total funding 1,305,603  1.89%   1,188,782  2.06%    44.20%    1  Other liabilities 22,349      21,396              Total liabilities 1,327,952      1,210,178              Equity 131,944      123,058              Total liabilities and equity$1,459,896     $1,333,236              Net interest income $11,279    $9,180            Net interest income as a percent of average interest-earning assets - GAAP measure3.40%    2.99%           Net interest income as a percent of average interest-earning assets - non GAAP3.41%    3.00% - Computed on a fully tax equivalent (FTE) basis        Non-GAAP reconciliationThree Months Ended    ($ in thousands, except per share & ratios)Mar. 31, 2025 Mar. 31, 2024    Total Operating Revenue$15,386  $13,131 Adjustment to (deduct)/add OMSR recapture/impairment * (11)  (181)    Adjusted Total Operating Revenue 15,375   12,950         Total Operating Expense$12,410  $10,282 Adjustment for merger expenses (726)  -     Adjusted Total Operating Expense 11,684   10,282         Income before Income Taxes 2,589   2,849 Adjustment for OMSR*/Merger Expenses 715   (181)    Adjusted Income before Income Taxes 3,304   2,668         Provision for Income Taxes 431   481 Adjustment for OMSR/Merger Expenses ** 150   (38)    Adjusted Provision for Income Taxes 581   443         Net Income 2,158   2,368 Adjustment for OMSR*/Merger Expenses 565   (143)    Adjusted Net Income 2,723   2,225         Diluted Earnings per Share 0.33   0.35 Adjustment for OMSR*/Merger Expenses 0.09   (0.02)    Adjusted Diluted Earnings per Share$0.42  $0.33         Return on Average Assets 0.60%  0.71%Adjustment for OMSR*/Merger Expenses 0.15%  -0.04%    Adjusted Return on Average Assets 0.75%  0.67%    *valuation adjustment to the Company's mortgage servicing rights      **tax effect is calculated using a 21% statutory federal corporate income tax rate

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