SB Financial Group Announces Fourth Quarter 2024 Results

DEFIANCE, Ohio, Jan. 23, 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 fourth quarter ended December 31, 2024. Fourth Quarter 2024 Highlights compared to the fourth quarter of the prior year: Net income of $3.6 million, which is down 6.4 percent with Diluted Earnings Per Share (“EPS”) of $0.55. When adjusted for Originated Mortgage Servings Rights (“OMSR”) and the Visa B share sale in the prior year, diluted EPS would be up $0.07 or 16.7 percent.Interest income of $16.8 million increased by 11.4 percent from $15.1 million reported in the prior year.Loan growth of $46.5 million, or 4.7 percent from the prior-year quarter, and marks the third consecutive quarter of sequential expanding loan growth, year over year.Tangible book value per shared ended the quarter at $16.00 up $1.02 per share or 6.8 percent from the prior year. Twelve Months Ended December 31, 2024, highlights Over the Prior Year include: Net income decreased slightly to $11.5 million, a 5.2 percent decline from the prior year's $12.1 million, and diluted EPS was $1.72, down 1.9 percent from $1.75. Adjusted EPS was up 4.2 percent compared to the prior year.Deposits increased by $82.4 million, or 7.7 percent to $1.15 billion.Total interest income of $64.3 million increased by $6.2 million, or 10.7 percent compared to the $58.2 million reported for the previous twelve months, while net interest income improved slightly to $39.9 million, or 1.7 percent. Earnings HighlightsThree Months Ended Twelve Months Ended($ in thousands, except per share & ratios)Dec. 2024 Dec. 2023 % Change Dec. 2024 Dec. 2023 % Change Operating revenue$15,454 $15,115 2.2% $56,939 $56,994 -0.1%Interest income16,847 15,126 11.4% 64,349 58,152 10.7%Interest expense5,950 5,542 7.4% 24,427 18,879 29.4%Net interest income10,897 9,584 13.7% 39,922 39,273 1.7%Provision (recovery) for credit losses(76)(74)-2.7% 124 315 -60.6%Noninterest income4,557 5,531 -17.6% 17,017 17,721 -4.0%Noninterest expense11,003 10,369 6.1% 42,959 41,962 2.4%Net income3,635 3,883 -6.4% 11,470 12,095 -5.2%Earnings per diluted share0.55 0.57 -3.5% 1.72 1.75 -1.7%Return on average assets1.04%1.17%-11.1% 0.84%0.91%-7.7%Return on average equity11.13%13.23%-15.9% 9.19%10.22%-10.1% “Our fourth-quarter and full-year 2024 results underscore our ability to navigate challenges while delivering growth in key areas,” said Mark A. Klein, Chairman, President, and CEO. “Net income for the quarter was $3.6 million, a 54.4 percent increase from the linked quarter. Diluted EPS for the quarter was $0.55, with full-year diluted EPS reaching $1.72. "In addition to our financial results, we are pleased that we were able to close on the Marblehead acquisition earlier this month. Their presence will add substantial liquidity via their low-cost deposit base and will expand our market presence in Northern Ohio.” Interest income for the quarter grew by 11.4 percent to $16.8 million, driven by strong loan performance. Loans increased by $46.5 million, compared to the prior year, and by $16.8 million from the linked quarter. Deposits also rose by $82.4 million, or 7.7 percent, to $1.15 billion, a testament to the trust our clients place in us. Tangible book value per share climbed by 6.8 percent to $16.00, underscoring our commitment to delivering shareholder value. We achieved $64.3 million in total interest income for the year, a 10.7 percent increase over 2023, which partially offset a slight decline in net income to $11.5 million. These results highlight our disciplined approach to growth, operational efficiency, and long-term value creation for our stakeholders. As we move into 2025, we remain focused on leveraging our momentum and strengthening our financial position.” RESULTS OF OPERATIONS Consolidated Revenue In the fourth quarter of 2024, total operating revenue increased to $15.5 million, a 2.2 percent rise from $15.1 million in the prior year and an 8.0 percent increase from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $10.9 million, a strong 13.7 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.5 million to $15.0 million. However, rising deposit costs contributed to a 7.4 percent increase in total interest expense, partially offsetting the gains in interest income. Despite this, the net interest margin expanded by 24 basis points year-over-year to 3.35 percent, reflecting the continued strength of our interest-earning assets and disciplined funding cost management. Noninterest income for the quarter declined by 17.6 percent year-over-year to $4.6 million due to the Visa B share sale recorded in the prior year quarter. However, it improved by 10.5 percent compared to the linked quarter, highlighting recovery in key areas. Gains on the sale of mortgage loans and OMSR increased by $448,000 year over year to $1.2 million, while wealth management fees and title insurance revenue rose by $78,000 and $100,000, respectively. Moving forward, we remain focused on maintaining a balanced approach to driving revenue growth and managing costs to deliver consistent shareholder value. Mortgage Loan Business "Our mortgage banking operations delivered another quarter of strong results, reflecting our strategic focus on origination growth, portfolio expansion, and servicing efficiency. Mortgage originations surged to $72.5 million, an impressive year-over-year increase of $33.0 million, or 83.3 percent,” continued Mr. Klein. “The Indianapolis team contributed 43 percent of our volume this quarter and our newest market, Cincinnati, had volume of $2.3 million in the quarter. Correspondingly, mortgage sales rose to $62.3 million, marking an 86.7 percent increase compared to the same period, last year.” The mortgage servicing portfolio expanded to $1.43 billion, achieving a year-over-year increase of $60.7 million, or 4.4 percent, further strengthening our recurring revenue streams, and highlighting the effectiveness of our servicing retention strategies. Net mortgage banking revenue for the quarter reached $2.0 million, up $703,000 from the prior year quarter, and for the year was $6.7 million up 18.1 percent compared to 2023. Gains on the sale of mortgages remained a key revenue driver, increasing by $448,000 year-over-year to $1.2 million. Loan servicing fees added $886,000 to revenue, reflecting an increase of $31,000 from the previous year quarter. Notably, the OMSR net valuation adjustment for full year 2024 was a positive $42,000 compared to a negative $51,000 for the full year of 2023. Mortgage Banking ($ in thousands)Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Dec. 2023 Prior YearGrowth Mortgage originations$ 72,534 $ 70,715 $ 75,110 $ 42,912 $ 39,566 $ 32,968 Mortgage sales62,301 61,271 55,835 36,623 33,362 28,939 Mortgage servicing portfolio1,427,318 1,406,273 1,389,805 1,371,713 1,366,667 60,651 Mortgage servicing rights14,868 14,357 14,548 14,191 13,906 962 Revenue Loan servicing fees886 874 862 855 855 31 OMSR amortization(358)(370)(335)(273)(282)(76)Net administrative fees528 504 527 582 573 (45)OMSR valuation adjustment288 (465)38 181 (12)300 Net loan servicing fees816 39 565 763 561 255 Gain on sale of mortgages1,196 1,311 1,277 781 747 449 Mortgage banking revenue, net$ 2,012 $ 1,350 $ 1,842 $ 1,544 $ 1,308 $ 704 Noninterest Income and Noninterest Expense "Noninterest income for the fourth quarter of 2024 totaled $4.6 million, with linked quarter noninterest income increasing by $434,000 or 10.5 percent, primarily due to increased revenue in net mortgage loan servicing fees and higher wealth management fees. Compared to the prior year quarter, wealth management fees grew modestly by $78,000 year over year, and title insurance revenue added $100,000, reflecting our ability to deliver consistent performance across core revenue categories,” Mr. Klein noted. Noninterest Income/Noninterest Expense ($ in thousands, except ratios)Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Dec. 2023 Prior YearGrowth Noninterest Income (NII)$4,557 $4,123 $4,386 $3,951 $5,531 $(974)NII / Total Revenue29.5%28.8%31.5%30.1%36.6%-7.1%NII / Average Assets1.3%1.2%1.3%1.2%1.7%-0.4%Total Revenue Growth2.2%4.5%-0.6%-6.1%3.4%-1.2% Noninterest Expense (NIE)$11,003 $11,003 $10,671 $10,282 $10,369 $634 Efficiency Ratio71.1%76.8%75.9%78.2%68.4%2.7%NIE / Average Assets3.2%3.2%3.2%3.1%3.1%0.1%Net Noninterest Expense/Avg. Assets-1.9%-2.0%-1.9%-1.9%-1.4%-0.5%Total Expense Growth6.1%5.0%3.2%-4.6%1.0%5.1% Noninterest expense for the fourth quarter of 2024 was unchanged at $11.0 million compared to the third quarter but increased by $634,000, or 6.1 percent, year-over-year. The year-over-year increase was primarily driven by a $533,000 increase in salaries and employee benefits, reflecting investments in talent to support operational growth and increased business activity. Noninterest expense increases were partially offset by reductions in discretionary expense categories, including a $61,000 decrease in state, local, and other taxes, as well as a $44,000 reduction in net occupancy expense. Postage and delivery expenses also saw a modest decline of $51,000. “Our efficiency ratio improved to 71.09 percent in the fourth quarter of 2024 from 76.78 percent in the linked quarter, highlighting our ability to manage costs while investing strategically in growth areas. With a year-end headcount of 252 full-time equivalent employees, we remain focused on balancing growth with operational efficiency” stated Mr. Klein. Balance Sheet As of December 31, 2024, SB Financial reported total assets of $1.38 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 $1.05 billion, marking a $46.5 million or 4.7 percent increase year over year. The strategic reallocation of liquidity contributed to this expansion, as evidenced by a decline in cash and available-for-sale securities, demonstrated the Company’s focus on maximizing returns while maintaining a solid financial position. Total deposits increased to $1.15 billion, growing $82.4 million or 7.7 percent year over year, reflecting SB Financial’s strength in deposit gathering and customer engagement. Shareholders’ equity ended the year at $127.5 million, representing a $3.2 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 fourth quarter, SB Financial repurchased 130,465 shares, continuing its active buyback program. This reflects the Company's dedication to returning value to shareholders through dividends and share repurchases while retaining sufficient capital to fund its long-term growth strategies. "As we conclude 2024, our balance sheet strength and strategic allocation of resources highlight our unwavering commitment to disciplined growth," said Mr. Klein, Chairman, President, and CEO. "Despite a challenging rate environment, we achieved our third consecutive quarter of loan growth, with balances increasing by $46.5 million from the previous year. This performance underscores our ability to deepen client relationships while navigating competitive dynamics. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, positioning us to capitalize on emerging opportunities while maintaining operational excellence. Looking ahead, we remain focused on driving shareholder value and sustaining robust financial performance in the evolving economic landscape." Loan Balances ($ in thousands, except ratios)Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Dec. 2023 AnnualGrowth Commercial$ 125,014 $ 123,821 $ 123,287 $ 120,016 $ 126,716 $ (1,952)% of Total11.9%12.0%12.3%12.1%12.7%-1.5%Commercial RE479,573 459,449 434,967 429,362 424,041 55,532 % of Total45.8%44.6%43.3%43.3%42.4%13.1%Agriculture64,680 64,887 64,329 62,365 65,659 (979)% of Total6.2%6.3%6.4%6.3%6.6%-1.5%Residential RE308,378 314,010 316,233 314,668 318,123 (9,745)% of Total29.5%30.5%31.5%31.7%31.8%-3.1%Consumer & Other69,340 67,788 66,574 65,141 65,673 3,667 % of Total6.6%6.6%6.6%6.6%6.6%5.6%Total Loans$ 1,046,735 $ 1,029,955 $ 1,005,390 $ 991,552 $ 1,000,212 $ 46,523 Total Growth Percentage 4.7% Deposit Balances ($ in thousands, except ratios)Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Dec. 2023 AnnualGrowth Non-Int DDA$ 232,155 $ 222,425 $ 208,244 $ 219,395 $ 228,713 $ 3,442 % of Total20.1%19.2%18.7%19.7%21.4%1.5%Interest DDA201,085 202,097 190,857 169,171 166,413 34,672 % of Total17.4%17.4%17.1%15.2%15.5%20.8%Savings237,987 241,761 231,855 244,157 216,965 21,022 % of Total20.6%20.8%20.8%21.9%20.3%9.7%Money Market222,161 228,182 225,650 221,362 202,605 19,556 % of Total19.3%19.7%20.2%19.9%18.9%9.7%Time Deposits259,217 265,068 258,582 258,257 255,509 3,708 % of Total22.5%22.9%23.2%23.2%23.9%1.5%Total Deposits$ 1,152,605 $ 1,159,533 $ 1,115,188 $ 1,112,342 $ 1,070,205 $ 82,400 Total Growth Percentage 7.7% Asset Quality As of December 31, 2024, SB Financial Group maintained strong asset quality metrics. Nonperforming assets totaled $5.5 million, representing 0.40 percent of total assets, an increase of $2.2 million compared to the $3.3 million or 0.25 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we expect to resolve favorably by mid-year 2025. The allowance for credit losses remained robust at 1.44 percent of total loans, providing 273.7 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of the institution's conservative approach to risk management. This strength underscores SB Financial's commitment to disciplined credit administration amidst evolving economic conditions. The net loan charge-offs to average loans ratio remained modest at 7 basis points and for the full year just 2 basis points, reflecting effective collateral management and a strong credit culture. "Our asset quality metrics demonstrate resilience and our commitment to disciplined risk management," stated Mark Klein, Chairman, President, and CEO. "While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and low charge-off levels underscore the performance of our loan portfolio. We remain focused on preserving the integrity of our credit processes while positioning our balance sheet for long-term growth." This balanced approach reflects SB Financial's efforts to maintain top-tier asset quality ratios, support lending growth, and ensure financial stability for the future. Nonperforming Assets Annual ($ in thousands, except ratios)Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Dec. 2023 Change Commercial & Agriculture$2,927 $2,899 $2,781 $897 $748 $2,179 % of Total Com./Ag. loans1.55%1.54%1.48%0.49%0.39%291.3%Commercial RE807 813 475 49 168 639 % of Total CRE loans0.17%0.18%0.11%0.01%0.04%380.4%Residential RE1,539 1,536 1,247 1,295 1,690 (151)% of Total Res. RE loans0.50%0.49%0.39%0.41%0.53%-8.9%Consumer & Other243 270 231 193 212 31 % of Total Con./Oth. loans0.35%0.40%0.35%0.30%0.32%14.6%Total Nonaccruing Loans5,516 5,518 4,734 2,434 2,818 2,698 % of Total loans0.53%0.54%0.47%0.25%0.28%95.7%Foreclosed Assets and Other Assets- - 510 510 511 (511)Total Change (%) -100.0%Total Nonperforming Assets$5,516 $5,518 $5,244 $2,944 $3,329 $2,187 % of Total assets0.40%0.40%0.39%0.22%0.25%65.70% Webcast and Conference Call The Company will hold the fourth quarter 2024 earnings conference call and webcast on January 24, 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 25 offices: 24 in ten Ohio counties and one in Fort Wayne, Indiana, and 25 ATMs. State Bank has seven 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 region. 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) December September June March December ($ in thousands)2024 2024 2024 2024 2023 ASSETS Cash and due from banks$ 25,928 $ 49,348 $ 21,983 $ 26,602 $ 22,965 Interest bearing time deposits1,565 1,706 2,417 2,417 1,535 Available-for-sale securities201,587 211,511 207,856 213,239 219,708 Loans held for sale6,770 8,927 7,864 4,730 2,525 Loans, net of unearned income1,046,735 1,029,955 1,005,390 991,552 1,000,212 Allowance for credit losses(15,096) (15,278) (15,612) (15,643) (15,786) Premises and equipment, net20,456 20,715 20,860 20,985 21,378 Federal Reserve and FHLB Stock, at cost5,223 5,223 5,204 6,512 7,279 Foreclosed assets and other assets- - 510 510 511 Interest receivable4,908 4,842 4,818 3,706 4,657 Goodwill23,239 23,239 23,239 23,239 23,239 Cash value of life insurance30,685 30,488 30,294 30,103 29,121 Mortgage servicing rights14,868 14,357 14,548 14,191 13,906 Other assets12,649 8,916 12,815 13,869 11,999 Total assets$ 1,379,517 $ 1,393,949 $ 1,342,186 $ 1,336,012 $ 1,343,249 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits Non interest bearing demand$ 232,155 $ 222,425 $ 208,244 $ 219,395 $ 228,713 Interest bearing demand201,085 202,097 190,857 169,171 166,413 Savings237,987 241,761 231,855 244,157 216,965 Money market222,161 228,182 225,650 221,362 202,605 Time deposits259,217 265,068 258,582 258,257 255,509 Total deposits1,152,605 1,159,533 1,115,188 1,112,342 1,070,205 Short-term borrowings10,585 15,240 15,178 12,916 13,387 Federal Home Loan Bank advances35,000 35,000 35,000 35,000 83,600 Trust preferred securities10,310 10,310 10,310 10,310 10,310 Subordinated debt net of issuance costs19,690 19,678 19,666 19,654 19,642 Interest payable2,351 3,374 2,944 2,772 2,443 Other liabilities21,468 17,973 18,421 19,295 19,320 Total liabilities1,252,009 1,261,108 1,216,707 1,212,289 1,218,907 Shareholders' Equity Common stock61,319 61,319 61,319 61,319 61,319 Additional paid-in capital15,194 15,090 15,195 14,978 15,124 Retained earnings116,186 113,515 112,104 109,938 108,486 Accumulated other comprehensive loss(30,234) (24,870) (31,801) (31,547) (29,831) Treasury stock(34,957) (32,213) (31,338) (30,965) (30,756) Total shareholders' equity127,508 132,841 125,479 123,723 124,342 Total liabilities and shareholders' equity$ 1,379,517 $ 1,393,949 $ 1,342,186 $ 1,336,012 $ 1,343,249 SB FINANCIAL GROUP, INC.CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) ($ in thousands, except per share & ratios)At and for the Three Months Ended Twelve Months Ended December September June March December December DecemberInterest income2024 2024 2024 2024 2023 2024 2023 Loans Taxable$ 14,920 $ 14,513 $ 13,883 $ 13,547 $ 13,438 $ 56,863 $ 51,407 Tax exempt122 127 124 123 124 496 483 Securities Taxable1,770 1,871 1,610 1,593 1,526 6,844 6,092 Tax exempt35 37 37 37 38 146 170 Total interest income16,847 16,548 15,654 15,300 15,126 64,349 58,152 Interest expense Deposits5,169 5,568 5,208 5,090 4,398 21,035 14,708 Repurchase agreements & other41 43 36 34 39 154 74 Federal Home Loan Bank advances369 369 370 613 720 1,721 2,603 Trust preferred securities177 187 187 188 191 739 716 Subordinated debt194 195 194 195 194 778 778 Total interest expense5,950 6,362 5,995 6,120 5,542 24,427 18,879 Net interest income10,897 10,186 9,659 9,180 9,584 39,922 39,273 Provision for credit losses(76) 200 - - (74) 124 315 Net interest income after provision for loan losses10,973 9,986 9,659 9,180 9,658 39,798 38,958 Noninterest income Wealth management fees916 882 848 865 838 3,511 3,532 Customer service fees842 870 875 880 844 3,467 3,403 Gain on sale of mtg. loans & OMSR1,195 1,311 1,277 781 747 4,564 3,609 Mortgage loan servicing fees, net816 39 565 763 561 2,183 2,101 Gain on sale of non-mortgage loans10 20 105 10 177 145 429 Title insurance revenue478 485 406 266 378 1,635 1,635 Net gain on sales of securities- - - - 1,453 - 1,453 Gain (loss) on sale of assets- 200 - - 16 200 20 Other299 316 310 386 517 1,311 1,539 Total noninterest income4,557 4,123 4,386 3,951 5,531 17,017 17,721 Noninterest expense Salaries and employee benefits6,185 6,057 6,009 5,352 5,652 23,603 22,777 Net occupancy expense702 706 707 769 746 2,884 3,096 Equipment expense1,127 1,069 1,060 1,077 1,027 4,333 4,078 Data processing fees821 758 727 769 680 3,075 2,659 Professional fees895 659 615 758 926 2,927 3,024 Marketing expense207 241 176 197 182 821 782 Telephone and communication expense136 128 156 105 132 525 501 Postage and delivery expense116 145 89 97 167 447 432 State, local and other taxes224 208 230 245 285 907 949 Employee expense168 228 159 178 146 733 631 Other expenses422 804 743 735 426 2,704 3,033 Total noninterest expense11,003 11,003 10,671 10,282 10,369 42,959 41,962 Income before income tax expense4,527 3,106 3,374 2,849 4,820 13,856 14,717 Income tax expense892 752 261 481 937 2,386 2,622 Net income $ 3,635 $ 2,354 $ 3,113 $ 2,368 $ 3,883 $ 11,470 $ 12,095 Common share data: Basic earnings per common share$ 0.55 $ 0.35 $ 0.47 $ 0.35 $ 0.58 $ 1.72 $ 1.77 Diluted earnings per common share$ 0.55 $ 0.35 $ 0.47 $ 0.35 $ 0.57 $ 1.72 $ 1.75 Average shares outstanding (in thousands): Basic:6,575 6,660 6,692 6,715 6,748 6,660 6,829 Diluted:6,599 6,675 6,700 6,723 6,851 6,680 6,917 SB FINANCIAL GROUP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)($ in thousands, except per share & ratios) At and for the Three Months Ended Twelve Months Ended December September June March December December December SUMMARY OF OPERATIONS 2024 2024 2024 2024 2023 2024 2023 Net interest income $ 10,897 $ 10,186 $ 9,659 $ 9,180 $ 9,584 $ 39,922 $ 39,273 Tax-equivalent adjustment 42 44 43 43 43 171 174 Tax-equivalent net interest income 10,939 10,230 9,702 9,223 9,627 40,093 39,447 Provision for credit loss (76) 200 - - (74) 124 315 Noninterest income 4,557 4,123 4,386 3,951 5,531 17,017 17,721 Total operating revenue 15,454 14,309 14,045 13,131 15,115 56,939 56,994 Noninterest expense 11,003 11,003 10,671 10,282 10,369 42,959 41,962 Pre-tax pre-provision income 4,451 3,306 3,374 2,849 4,746 13,980 15,032 Net income 3,635 2,354 3,113 2,368 3,883 11,470 12,095 PER SHARE INFORMATION: Basic earnings per share (EPS) 0.55 0.35 0.47 0.35 0.58 1.72 1.77 Diluted earnings per share 0.55 0.35 0.47 0.35 0.57 1.72 1.75 Common dividends 0.145 0.140 0.140 0.135 0.135 0.560 0.520 Book value per common share 19.64 20.05 18.80 18.46 18.50 19.64 18.50 Tangible book value per common share (TBV) 16.00 16.49 15.26 14.93 14.98 16.00 14.98 Market price per common share 20.91 20.56 14.00 13.78 15.35 20.91 15.35 Market price to TBV 130.7% 124.7% 91.8% 92.3% 102.5% 130.7% 102.5%Market price to trailing 12 month EPS 12.1 11.8 7.9 7.9 8.8 12.1 8.8 PERFORMANCE RATIOS: Return on average assets (ROAA) 1.04% 0.68% 0.93% 0.71% 1.17% 0.84% 0.91%Pre-tax pre-provision ROAA 1.28% 0.96% 1.01% 0.85% 1.43% 1.10% 1.21%Return on average equity (ROE) 11.13% 7.32% 10.16% 7.70% 13.23% 9.19% 10.22%Return on average tangible equity 13.58% 8.97% 12.59% 9.53% 16.57% 11.34% 12.78%Efficiency ratio 71.09% 76.78% 75.86% 78.17% 68.44% 75.33% 73.47%Earning asset yield 5.18% 5.16% 5.02% 4.97% 4.89% 5.08% 4.67%Cost of interest bearing liabilities 2.36% 2.53% 2.47% 2.55% 2.33% 2.48% 1.97%Net interest margin 3.35% 3.17% 3.10% 2.98% 3.10% 3.15% 3.15%Tax equivalent effect 0.01% 0.02% 0.01% 0.01% 0.01% 0.01% 0.01%Net interest margin, tax equivalent 3.36% 3.19% 3.11% 2.99% 3.11% 3.16% 3.16%Non interest income/Average assets 1.31% 1.20% 1.31% 1.19% 1.67% 1.25% 1.33%Non interest expense/Average assets 3.15% 3.20% 3.18% 3.08% 3.12% 3.16% 3.14%Net noninterest expense/Average assets -1.85% -2.00% -1.87% -1.90% -1.46% -1.91% -1.81% ASSET QUALITY RATIOS: Gross charge-offs 195 29 - 66 5 290 118 Recoveries 13 2 16 9 1 40 26 Net charge-offs 182 27 (16) 57 4 250 92 Nonperforming loans/Total loans 0.53% 0.54% 0.47% 0.25% 0.28% 0.53% 0.28%Nonperforming assets/Loans & OREO 0.53% 0.54% 0.52% 0.30% 0.33% 0.53% 0.33%Nonperforming assets/Total assets 0.40% 0.40% 0.39% 0.22% 0.25% 0.40% 0.25%Allowance for credit loss/Nonperforming loans 273.68% 276.83% 329.78% 642.69% 560.18% 273.68% 560.18%Allowance for credit loss/Total loans 1.44% 1.48% 1.55% 1.58% 1.58% 1.44% 1.58%Net loan charge-offs/Average loans (ann.) 0.07% 0.01% (0.01%) 0.02% 0.00% 0.02% 0.01% CAPITAL & LIQUIDITY RATIOS: Loans/ Deposits 90.81% 88.82% 90.15% 89.14% 93.46% 90.81% 93.46%Equity/ Assets 9.24% 9.53% 9.35% 9.26% 9.26% 9.24% 9.26%Tangible equity/Tangible assets 7.66% 7.97% 7.72% 7.63% 7.63% 7.66% 7.63%Common equity tier 1 ratio (Bank) 13.64% 13.19% 13.98% 13.84% 13.42% 13.64% 13.42% END OF PERIOD BALANCES Total assets 1,379,517 1,393,949 1,342,186 1,336,012 1,343,249 1,379,517 1,343,249 Total loans 1,046,735 1,029,955 1,005,390 991,552 1,000,212 1,046,735 1,000,212 Deposits 1,152,605 1,159,533 1,115,188 1,112,342 1,070,205 1,152,605 1,070,205 Shareholders equity 127,508 132,841 125,479 123,723 124,342 127,508 124,342 Goodwill and intangibles 23,597 23,613 23,630 23,646 23,662 23,597 23,662 Tangible equity 103,911 109,228 101,849 100,077 100,680 103,911 100,680 Mortgage servicing portfolio 1,427,318 1,406,273 1,389,805 1,371,713 1,366,667 1,427,318 1,366,667 Wealth/Brokerage assets under care 547,697 557,724 525,713 525,517 501,829 547,697 501,829 Total assets under care 3,354,532 3,357,946 3,257,704 3,233,242 3,211,745 3,354,532 3,211,745 Full-time equivalent employees 252 248 249 245 251 252 251 Period end common shares outstanding 6,494 6,624 6,676 6,702 6,720 6,494 6,720 Market capitalization (all) 135,780 136,189 93,458 92,359 103,147 135,780 103,147 AVERAGE BALANCES Total assets 1,395,473 1,376,849 1,342,847 1,333,236 1,327,415 1,361,274 1,334,644 Total earning assets 1,301,872 1,283,407 1,246,099 1,230,736 1,236,165 1,267,794 1,246,531 Total loans 1,040,580 1,018,262 1,005,018 993,310 992,337 1,014,375 985,217 Deposits 1,163,531 1,145,964 1,120,367 1,091,803 1,084,939 1,130,973 1,094,547 Shareholders equity 130,647 128,608 122,510 123,058 117,397 124,742 118,315 Goodwill and intangibles 23,605 23,621 23,638 23,654 23,675 23,629 23,709 Tangible equity 107,042 104,987 98,872 99,404 93,722 101,113 94,606 Average basic shares outstanding 6,575 6,660 6,692 6,715 6,748 6,660 6,829 Average diluted shares outstanding 6,599 6,675 6,700 6,723 6,851 6,680 6,917 SB FINANCIAL GROUP, INC.Rate Volume Analysis - (Unaudited)For the Three and Twelve Months Ended Dec. 31, 2024 and 2023 ($ in thousands)Three Months Ended Dec. 31, 2024 Three Months Ended Dec. 31, 2023 Average Average Average Average AssetsBalance InterestRate Balance InterestRate Taxable securities/cash$ 254,989 $ 1,7702.78% $ 237,203 $ 1,5262.57% Nontaxable securities6,303 352.22% 6,625 382.29% Loans, net1,040,580 15,0425.78% 992,337 13,5625.47% Total earning assets1,301,872 16,8475.18% 1,236,165 15,1264.89% Cash and due from banks4,262 4,077 Allowance for loan losses(15,070) (15,787) Premises and equipment20,642 22,205 Other assets83,767 80,755 Total assets$ 1,395,473 $ 1,327,415 Liabilities Savings, MMDA and interest bearing demand$ 669,987 $ 2,8031.67% $ 601,034 $ 2,2321.49% Time deposits259,093 2,3663.65% 247,382 2,1663.50% Repurchase agreements & other13,229 411.24% 13,359 391.17% Advances from Federal Home Loan Bank35,000 3694.22% 58,330 7204.94% Trust preferred securities10,310 1776.87% 10,310 1917.41% Subordinated debt19,674 1943.94% 19,634 1943.95% Total interest bearing liabilities1,007,293 5,9502.36% 950,049 5,5422.33% Non interest bearing demand234,451 - 236,523 - Total funding1,241,744 1.92% 1,186,572 1.87% Other liabilities23,082 23,446 Total liabilities1,264,826 1,210,018 Equity130,647 117,397 Total liabilities and equity$ 1,395,473 $ 1,327,415 - Net interest income $ 10,897 $ 9,584 Net interest income as a percent of average interest-earning assets - GAAP measure 3.35% 3.10% Net interest income as a percent of average interest-earning assets - non GAAP 3.36% 3.11% - Computed on a fully tax equivalent (FTE) basis Twelve Months Ended Dec. 31, 2024 Twelve Months Ended Dec. 31, 2023 Average Average Average Average AssetsBalance InterestRate Balance InterestRate Taxable securities/cash$ 247,026 $ 6,8442.77% $ 254,133 $ 6,0922.40% Nontaxable securities6,393 1462.28% 7,181 1702.37% Loans, net1,014,375 57,3595.65% 985,217 51,8905.27% Total earning assets1,267,794 64,3495.08% 1,246,531 58,1524.67% Cash and due from banks4,388 4,035 Allowance for loan losses(15,536) (15,478) Premises and equipment20,929 22,990 Other assets83,699 76,566 Total assets$ 1,361,274 $ 1,334,644 Liabilities Savings, MMDA and interest bearing demand$ 643,710 $ 11,0731.72% $ 619,906 $ 7,5991.23% Time deposits259,818 9,9623.83% 236,665 7,1093.00% Repurchase agreements & Other14,336 1541.07% 15,765 740.47% Advances from Federal Home Loan Bank39,092 1,7214.40% 55,044 2,6034.73% Trust preferred securities10,310 7397.17% 10,310 7166.94% Subordinated debt19,665 7783.96% 19,616 7783.97% Total interest bearing liabilities986,931 24,4272.48% 957,306 18,8791.97% Non interest bearing demand227,445 2.01% 237,976 1.58% Total funding1,214,376 1,195,282 Other liabilities22,156 21,047 Total liabilities1,236,532 1,216,329 Equity124,742 118,315 Total liabilities and equity$ 1,361,274 $ 1,334,644 Net interest income $ 39,922 $ 39,273 Net interest income as a percent of average interest-earning assets - GAAP measure 3.15% 3.15% Net interest income as a percent of average interest-earning assets - non GAAP 3.16% 3.16% - Computed on a fully tax equivalent (FTE) basis Non-GAAP reconciliation Three Months Ended Twelve Months Ended ($ in thousands, except per share & ratios)Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Total Operating Revenue$ 15,454 $ 15,115 $ 56,939 $ 56,994 Adjustment to (deduct)/add OMSR recapture/impairment *(288) 12 (42) 51 Adjusted Total Operating Revenue15,166 15,127 56,897 57,045 Income before Income Taxes4,527 4,820 13,856 14,717 Adjustment for OMSR *(288) 12 (42) 51 Adjusted Income before Income Taxes4,239 4,832 13,814 14,768 Provision for Income Taxes892 938 2,386 2,623 Adjustment for OMSR **(60) 3 (9) 11 Adjusted Provision for Income Taxes832 941 2,377 2,634 Net Income3,635 3,882 11,470 12,094 Adjustment for OMSR *(228) 9 (33) 40 Adjusted Net Income3,407 3,891 11,437 12,134 Diluted Earnings per Share0.55 0.57 1.72 1.75 Adjustment for OMSR *(0.03) 0.00 (0.00) 0.01 Adjusted Diluted Earnings per Share$ 0.52 $ 0.57 $ 1.71 $ 1.75 Return on Average Assets1.04% 1.17% 0.84% 0.91%Adjustment for OMSR *-0.07% 0.00% 0.00% 0.00% Adjusted Return on Average Assets0.98% 1.17% 0.84% 0.91% *valuation adjustment to the Company's mortgage servicing rights **tax effect is calculated using a 21% statutory federal corporate income tax rate

SB Financial Group Announces Fourth Quarter 2024 Results

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