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SB Financial Group Announces Second Quarter 2025 Results

1. SBFG reported $3.9 million net income, up 23.7% YoY. 2. Net interest income increased by 25.6% to $12.1 million. 3. Loan growth reached $89.3 million, marking five consecutive quarters of growth. 4. Deposits rose by 12.1% to $1.25 billion, despite a quarterly decline. 5. Tangible book value per share increased by 7.7% to $16.44.

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SBFG's robust earnings growth and loan growth suggest strong market performance. Historical patterns show similar earnings times led to positive stock movement.

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Strong earnings, loan growth, and high return metrics significantly improve SBFG's attractiveness to investors, indicating a strong likelihood of price impact.

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Immediate investor sentiment could react positively from strong quarterly results, influencing stock prices quickly. Past performance indicates that earnings surprises often affect quarterly outlook.

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DEFIANCE, Ohio, July 24, 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 second quarter ended June 30, 2025. Second Quarter 2025 Highlights compared to the second quarter of the prior year include: GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.60 per DEPS, well above the $3.1 million, or $0.47 per DEPS in the prior year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”), was $3.7 million, up 20.9 percent compared to $3.1 million for the prior-year period. Adjusted DEPS of $0.58 was also up 25.4 percent, from the prior year.Net interest income of $12.1 million increased by 25.6 percent from $9.7 million reported in the prior-year quarter.Loan growth of $89.3 million, or 8.9 percent from the prior-year quarter, with growth from the linked quarter of $6.4 million, or 0.6 percent. This marks five consecutive quarters of sequential loan growth. Loan growth adjusted for the Marblehead acquisition, was $71.3 and $7.0 million, from the prior year and linked quarters, respectively.Deposit growth of $134.6 million, or 12.1 percent from the prior-year quarter, with a decline from the linked quarter of $21.4 million, or 1.7 percent. Adjusted for the Marblehead acquisition, total deposits increased $83.8 million from the prior year.Tangible book value (“TBV”) per share ended the quarter at $16.44 up $1.18 per share or 7.7 percent from the prior year quarter.   Six months ended June 30, 2025 Highlights compared to the same period of the prior year: Mortgage banking revenue totaled $3.6 million for the first half of 2025, reflecting an increase of 6.9 percent compared to $3.4 million for the first half of 2024.Net interest income rose to $23.4 million, representing a year-over-year improvement of 24.3 percent from $18.8 million for the six months ending June 30,2024.Total interest expense came in at $12.4 million, up slightly by 2.6 percent from $12.1 million in the prior year period. Earnings HighlightsThree Months Ended  Six Months Ended($ in thousands, except per share & ratios)Jun. 2025Jun. 2024% Change  Jun. 2025Jun. 2024% ChangeOperating revenue$17,176 $14,045 22.3%  $32,562 $27,176 19.8%Interest income 18,467  15,654 18.0%   35,840  30,954 15.8%Interest expense 6,339  5,995 5.7%   12,432  12,115 2.6%Net interest income 12,128  9,659 25.6%   23,408  18,839 24.3%Provision for credit losses 597  - N/M   984  - N/MNoninterest income 5,048  4,386 15.1%   9,154  8,337 9.8%Noninterest expense 11,852  10,671 11.1%   24,262  20,953 15.8%Net income 3,852  3,113 23.7%   6,010  5,481 9.7%Adjusted Earnings per diluted share 0.58  0.46 26.1%   1.00  0.79 26.6%Earnings per diluted share 0.60  0.47 27.7%   0.93  0.82 13.4%Adjusted Return on Avg. Assets 1.00% 0.92%8.7%   0.85% 0.81%4.9%Return on average assets 1.03% 0.93%10.8%   0.82% 0.82%0.0%Adjusted Return on Avg. Equity 11.29% 10.12%11.5%   10.54% 8.45%24.7%Return on average equity 11.67% 10.22%14.2%   9.19% 9.02%1.9%          “Our second quarter results highlight the execution of our growth strategy and disciplined operational management, and their positive impact on our results,” said Mark A. Klein, Chairman, President, and CEO. “Net income for the quarter was $3.9 million, a 23.7 percent increase from the prior-year quarter, with the GAAP DEPS of $0.60 up 27.7 percent from the prior year. Our solid second quarter performance reflects the first full quarter of contribution from the Marblehead acquisition which strengthened our liquidity position and further expanded our market presence in Northern Ohio.” Net interest income for the quarter grew by 25.6 percent to $12.1 million compared to the previous year, driven by continued strong loan growth and stabilization of funding costs. Total loans increased by $89.3 million, compared to the prior year, and by $6.4 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $71.3. Deposits rose $134.6 million, or 12.1 percent, to $1.25 billion, reflecting the impact of the acquisition and the strength of our new and existing client relationships. Adjusted for the acquisition, deposits increased $83.8 million from the prior year. RESULTS OF OPERATIONS In the second quarter of 2025, total operating revenue increased to $17.2 million, a 22.3 percent rise from $14.0 million in the prior year and an 11.6 percent increase from the linked quarter, driven by continued growth in both net interest income and noninterest income. Net interest income reached $12.1 million, a strong 25.6 percent year-over-year increase, reflecting higher interest income on loans, which rose by $2.2 million to $16.2 million. Deposit costs increased by 7.5 percent to $5.6 million but were partially offset by decreases in interest expense on other funding sources, resulting in a 5.7 percent increase in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 36 basis points year-over-year to 3.48 percent, reflecting the continued strength of our interest-earning assets and stabilization of funding costs. Noninterest income for the quarter increased by 15.1 percent year-over-year to $5.0 million due primarily to improvements in gain on sale of mortgage loans and title insurance as well as modest increases in wealth management, mortgage loan servicing and customer service fees. These fees were partially offset by decreases in gain on sales of non-mortgage loans. “We continue to focus on maintaining a balanced growth strategy and diversified revenue stream coupled with effective cost management,” said Mr. Klein. Mortgage Loan Business Net mortgage banking revenue for the quarter reached $2.2 million, up $317,000 from the prior-year quarter. Loan servicing fees added $904,000 to revenue, reflecting an increase of $42,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2025 was a positive $159,000 compared to a positive $38,000 in the second quarter of 2024. Mortgage Banking       ($ in thousands)Jun. 2025Mar. 2025Dec. 2024Sep. 2024Jun. 2024 Prior Year GrowthMortgage originations$97,901 $39,775 $72,534 $70,715 $75,110  $22,791 Mortgage sales 74,313  39,279  62,301  61,271  55,835   18,478 Mortgage servicing portfolio 1,456,374  1,432,184  1,427,318  1,406,273  1,389,805   66,569 Mortgage servicing rights 15,896  14,965  14,868  14,357  14,548   1,348                 Revenue       Loan servicing fees 904  894  886  874  862   42 OMSR amortization (469) (294) (358) (370) (335)  (134)Net administrative fees 435  600  528  504  527   (92)OMSR valuation adjustment 159  11  288  (465) 38   121 Net loan servicing fees 594  611  816  39  565   29 Gain on sale of mortgages 1,565  849  1,196  1,311  1,277   288 Mortgage banking revenue, net$ 2,159 $ 1,460 $ 2,012 $ 1,350 $ 1,842  $ 317          Noninterest Income and Noninterest Expense "Noninterest income for the second quarter of 2025 totaled $5.0 million, up $661,000 or 15.1 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 $289,000 year over year, and title insurance revenue added $176,000, reflecting our revenue diversification strategy,” Mr. Klein noted. Noninterest Income/Noninterest Expense       ($ in thousands, except ratios) Jun. 2025Mar. 2025Dec. 2024Sep. 2024Jun. 2024 Prior Year GrowthNoninterest Income (NII) $5,048 $4,107 $4,557 $4,123 $4,386  $662 NII / Total Revenue  29.4% 26.7% 29.5% 28.8% 31.5%  -2.1%NII / Average Assets  1.4% 1.1% 1.3% 1.2% 1.3%  0.1%Total Revenue Growth  22.3% 17.2% 2.2% 4.5% -0.6%  22.9%         Noninterest Expense (NIE) $11,852 $12,410 $11,003 $11,003 $10,671  $1,181 Efficiency Ratio  68.9% 80.0% 71.1% 76.8% 75.9%  -7.0%NIE / Average Assets  3.2% 3.4% 3.2% 3.2% 3.2%  0.0%Net Noninterest Expense/Avg. Assets -1.8% -2.3% -1.8% -2.0% -1.9%  0.1%Total Expense Growth  11.1% 20.7% 6.1% 5.0% 3.2%  7.9%          Noninterest expense for the second quarter of 2025 was $11.9 million, up 11.1 percent from the prior year, driven primarily by increased salary and benefit expenses, data processing and professional fees. “Our efficiency ratio in the second quarter of 2025 was 68.9 percent marking a solid improvement compared to the linked quarter and the prior year,” stated Mr. Klein. Balance Sheet As of June 30, 2025, SB Financial reported total assets of $1.49 billion, down slightly from the linked quarter but higher than the previous year. Year-over-year growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $89.3 million or 8.9 percent increase year over year. Loan growth also included $18.0 million in loans added with the completion of the acquisition. Cash increased by $57.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio. Total deposits increased to $1.25 billion, growing $134.6 million or 12.1 percent year over year, including $50.9 million in low-cost deposits from the acquisition and $83.8 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement within dynamic markets. Shareholders’ equity ended the quarter at $133.6 million, representing an $8.2 million increase from the prior year. This growth reflects management's ongoing commitment to enhancing shareholder value through solid earnings performance. During the second quarter, SB Financial repurchased 124,000 shares, more than in the previous quarters as the Company made opportunistic purchases below our target range. This reflects the Company's commitment 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 second half of 2025, our balance sheet strength and strategic management of resources form a foundation to support our long-term strategic growth ambitions," said Mr. Klein. "Even in the current uncertain rate environment, we achieved our fifth consecutive quarter of sequential loan growth, with balances increasing by $89.3 million from the previous year, which included $71.3 million of organic loan growth. This performance underscores the strength of our deep client relationships and our sustained competitiveness in local markets as we pursue an innovative, “hybrid” office operating strategy. Our strong asset quality, supported by top-decile coverage ratios, remains a key component of our financial stability, which will enable us to take advantage of emerging opportunities while continuing to pursue operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economy evolves and stabilizes." Loan Balances      ($ in thousands, except ratios)Jun. 2025Mar. 2025Dec. 2024Sep. 2024Jun. 2024Annual GrowthCommercial$118,984 $125,878 $124,764 $123,821 $123,287 $(4,303)% of Total 10.9% 11.6% 11.9% 12.0% 12.3% -3.5%Commercial RE 525,671  509,518  479,573  459,449  434,967  90,704 % of Total 48.0% 46.8% 45.8% 44.6% 43.3% 20.9%Agriculture 60,924  61,443  64,680  64,887  64,329  (3,405)% of Total 5.6% 5.6% 6.2% 6.3% 6.4% -5.3%Residential RE 310,126  319,307  308,378  314,010  316,233  (6,107)% of Total 28.3% 29.3% 29.5% 30.5% 31.5% -1.9%Consumer & Other 79,014  72,128  69,340  67,788  66,574  12,440 % of Total 7.2% 6.6% 6.6% 6.6% 6.6% 18.7%Total Loans$ 1,094,719 $ 1,088,274 $ 1,046,735 $ 1,029,955 $ 1,005,390 $ 89,329 Total Growth Percentage        8.9%              Deposit Balances      ($ in thousands, except ratios)Jun. 2025Mar. 2025Dec. 2024Sep. 2024Jun. 2024Annual GrowthNon-Int DDA$241,245 $240,446 $232,155 $222,425 $208,244 $33,001 % of Total 19.3% 18.9% 20.1% 19.2% 18.7% 15.8%Interest DDA 205,581  208,583  201,085  202,097  190,857  14,724 % of Total 16.4% 16.4% 17.4% 17.4% 17.1% 7.7%Savings 282,311  285,902  237,987  241,761  231,855  50,456 % of Total 22.6% 22.5% 20.6% 20.8% 20.8% 21.8%Money Market 249,536  257,013  222,161  228,182  225,650  23,886 % of Total 20.0% 20.2% 19.3% 19.7% 20.2% 10.6%Time Deposits 271,149  279,276  259,217  265,068  258,582  12,567 % of Total 21.7% 22.0% 22.5% 22.9% 23.2% 4.9%Total Deposits$ 1,249,822 $ 1,271,220 $ 1,152,605 $ 1,159,533 $ 1,115,188 $ 134,634 Total Growth Percentage        12.1%        Asset Quality As of June 30, 2025, SB Financial continued to focus on strong asset quality metrics. Nonperforming assets totaled $6.2 million, representing 0.42 percent of total assets, an increase of $944,000 compared to $5.2 million or 0.39 percent of total assets reported in the prior year, but relatively stable compared to the linked quarter balance of $6.1 million, representing 0.41 percent of total assets. The allowance for credit losses remained strong at 1.43 percent of total loans, providing 265.0 percent coverage of nonperforming loans, a level consistent with the linked quarter and reflective of our conservative approach to risk management. The net loan charge-offs to average loans ratio remained modest at 2 basis points, declining from 3 basis points in the linked quarter but up from the 1 basis point net recoveries recorded in the prior year. These metrics reflect disciplined credit practices and effective collateral management. "Our asset quality metrics embody our approach and commitment to disciplined risk management within a dynamic economic environment," stated Mr. Klein. "While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio and the strength of our lending relationships. We are committed to balancing our conservative approach in managing credit risk with the need to effectively manage our growth to enhance shareholder returns." Nonperforming Assets     Annual Change($ in thousands, except ratios)Jun. 2025Mar. 2025Dec. 2024Sep. 2024Jun. 2024Commercial & Agriculture$3,306 $3,418 $2,927 $2,899 $2,781 $525 % of Total Com./Ag. loans 1.84% 1.82% 1.55% 1.54% 1.48% 18.9%Commercial RE 816  798  807  813  475  341 % of Total CRE loans 0.16% 0.16% 0.17% 0.18% 0.11% 71.8%Residential RE 1,577  1,608  1,539  1,536  1,247  330 % of Total Res. RE loans 0.51% 0.50% 0.50% 0.49% 0.39% 26.5%Consumer & Other 205  227  243  270  231  (26)% of Total Con./Oth. loans 0.26% 0.31% 0.35% 0.40% 0.35% -11.3%Total Nonaccruing Loans 5,904  6,051  5,516  5,518  4,734  1,170 % of Total loans 0.54% 0.56% 0.53% 0.54% 0.47% 24.7%Foreclosed Assets and Other Assets 284  73  -  -  510  (226)Total Change (%)      -44.3%Total Nonperforming Assets$6,188 $6,124 $5,516 $5,518 $5,244 $944 % of Total assets 0.42% 0.41% 0.40% 0.40% 0.39% 18.00%        Webcast and Conference Call The Company will hold the second quarter 2025 earnings conference call and webcast on July 25, 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)                     June March December September June    ($ in thousands)  2025   2025   2024   2024   2024                 ASSETS            Cash and due from banks $79,463  $105,145  $25,928  $49,348  $21,983   Interest bearing time deposits  1,565   1,565   1,565   1,706   2,417   Available-for-sale securities  195,955   199,721   201,587   211,511   207,856   Loans held for sale  12,774   4,286   6,770   8,927   7,864   Loans, net of unearned income  1,094,719   1,088,274   1,046,735   1,029,955   1,005,390   Allowance for credit losses  (15,645)  (15,391)  (15,096)  (15,278)  (15,612)  Premises and equipment, net  21,857   21,875   20,456   20,715   20,860   Federal Reserve and FHLB Stock, at cost  5,466   5,340   5,223   5,223   5,204   Foreclosed assets  284   73   -   -   510   Interest receivable  5,299   5,072   4,908   4,842   4,818   Goodwill  27,158   27,158   23,239   23,239   23,239   Cash value of life insurance  31,060   30,871   30,685   30,488   30,294   Mortgage servicing rights  15,458   14,965   14,868   14,357   14,548   Other assets  10,888   12,048   12,649   8,916   12,815                    Total assets $1,486,301  $1,501,002  $1,379,517  $1,393,949  $1,342,186                                               LIABILITIES AND SHAREHOLDERS' EQUITY            Deposits             Non interest bearing demand $241,245  $240,446  $232,155  $222,425  $208,244    Interest bearing demand  205,581   208,583   201,085   202,097   190,857    Savings  282,311   285,902   237,987   241,761   231,855    Money market  249,536   257,013   222,161   228,182   225,650    Time deposits  271,149   279,276   259,217   265,068   258,582                    Total deposits  1,249,822   1,271,220   1,152,605   1,159,533   1,115,188                  Short-term borrowings  15,640   11,058   10,585   15,240   15,178   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  19,715   19,702   19,690   19,678   19,666   Interest payable  2,258   2,634   2,351   3,374   2,944   Other liabilities  19,908   19,552   21,468   17,973   18,421                    Total liabilities  1,352,653   1,369,476   1,252,009   1,261,108   1,216,707                  Shareholders' Equity             Common stock  61,319   61,319   61,319   61,319   61,319    Additional paid-in capital  15,139   14,955   15,194   15,090   15,195    Retained earnings  120,273   117,397   116,186   113,515   112,104    Accumulated other comprehensive loss  (25,492)  (26,872)  (30,234)  (24,870)  (31,801)   Treasury stock  (37,591)  (35,273)  (34,957)  (32,213)  (31,338)                   Total shareholders' equity  133,648   131,526   127,508   132,841   125,479                    Total liabilities and shareholders' equity$1,486,301  $1,501,002  $1,379,517  $1,393,949  $1,342,186                  SB FINANCIAL GROUP, INC.CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)                ($ in thousands, except per share & ratios) At and for the Three Months Ended Six Months Ended                   June March December September June June JuneInterest income 2025 2025  2024  2024  2024  2025 2024 Loans                 Taxable $16,059 $15,244 $14,920  $14,513 $13,883  $31,303 $27,430   Tax exempt  116  115  122   127  124   231  247 Securities                 Taxable  1,133  1,169  1,178   1,192  1,226   2,302  2,500   Tax exempt  35  38  35   37  37   73  74 Other interest income  1,124  806  592   679  384   1,930  703 Total interest income  18,467  17,372  16,847   16,548  15,654   35,839  30,954                Interest expense               Deposits  5,597  5,352  5,169   5,568  5,208   10,949  10,298 Repurchase agreements & other  21  24  41   43  36   45  70 Federal Home Loan Bank advances 366  362  369   369  370   728  983 Trust preferred securities  161  160  177   187  187   321  375 Subordinated debt  194  195  194   195  194   389  389 Total interest expense  6,339  6,093  5,950   6,362  5,995   12,432  12,115                                Net interest income  12,128  11,279  10,897   10,186  9,659   23,407  18,839                 Provision for credit losses  597  387  (76)  200  -   984  -                Net interest income after provision                for loan losses  11,531  10,892  10,973   9,986  9,659   22,423  18,839                Noninterest income               Wealth management fees  859  864  916   882  848   1,723  1,713 Customer service fees  886  879  842   870  875   1,765  1,755 Gain on sale of mtg. loans & OMSR 1,566  849  1,196   1,311  1,277   2,415  2,058 Mortgage loan servicing fees, net  594  611  816   39  565   1,205  1,328 Gain on sale of non-mortgage loans 82  15  10   20  105   97  115 Title insurance revenue  582  397  478   485  406   979  672 Net gain on sales of securities  -  -  -   -  -   -  - Gain (loss) on sale of assets  -  -  -   200  -   -  - Other  479  492  299   316  310   971  696 Total noninterest income  5,048  4,107  4,557   4,123  4,386   9,155  8,337                Noninterest expense               Salaries and employee benefits  6,595  6,237  6,185   6,057  6,009   12,832  11,361 Net occupancy expense  793  893  702   706  707   1,686  1,476 Equipment expense  1,121  1,072  1,127   1,069  1,060   2,193  2,137 Data processing fees  888  1,439  821   758  727   2,327  1,496 Professional fees  892  1,034  895   659  615   1,926  1,373 Marketing expense  190  165  207   241  176   355  373 Telephone and communication expense  125  139  136   128  156   264  261 Postage and delivery expense  107  137  116   145  89   244  186 State, local and other taxes  268  224  224   208  230   492  475 Employee expense  176  174  168   228  159   350  337 Other expenses  697  896  422   804  743   1,593  1,478 Total noninterest expense  11,852  12,410  11,003   11,003  10,671   24,262  20,953                                Income before income tax expense  4,727  2,589  4,527   3,106  3,374   7,316  6,223 Income tax expense  875  431  892   752  261   1,306  742                Net income   $3,852 $2,158 $3,635  $2,354 $3,113  $6,010 $5,481                Common share data:               Basic earnings per common share $0.60 $0.33 $0.55  $0.35 $0.47  $0.93 $0.82 Diluted earnings per common share$0.60 $0.33 $0.55  $0.35 $0.47  $0.93 $0.82                Average shares outstanding (in thousands):               Basic:  6,448  6,481  6,575   6,660  6,692   6,464  6,703 Diluted:  6,459  6,502  6,599   6,675  6,700   6,483  6,715                 SB FINANCIAL GROUP, INC.   CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)                  ($ in thousands, except per share & ratios)At and for the Three Months Ended Six Months Ended                 June March December September June June JuneSUMMARY OF OPERATIONS  2025   2025   2024   2024   2024   2025   2024                Net interest income $12,128  $11,279  $10,897  $10,186  $9,659  $23,407  $18,839 Tax-equivalent adjustment  40   41   42   44   43   81   85 Tax-equivalent net interest income  12,168   11,320   10,939   10,230   9,702   23,488   18,924 Provision for credit loss  597   387   (76)  200   -   984   - Noninterest income  5,048   4,107   4,557   4,123   4,386   9,155   8,337 Total operating revenue  17,176   15,386   15,454   14,309   14,045   32,562   27,176 Noninterest expense  11,852   12,410   11,003   11,003   10,671   24,262   20,953 Pre-tax pre-provision income  5,324   2,976   4,451   3,306   3,374   8,300   6,223 Net income  3,852   2,158   3,635   2,354   3,113   6,010   5,481                PER SHARE INFORMATION:              Basic earnings per share (EPS)  0.60   0.33   0.55   0.35   0.47   0.93   0.82 Diluted earnings per share  0.60   0.33   0.55   0.35   0.47   0.93   0.82 Common dividends  0.150   0.145   0.145   0.140   0.140   0.295   0.275 Book value per common share  21.02   20.29   19.64   20.05   18.80   21.02   18.80 Tangible book value per common share (TBV)  16.44   15.79   16.00   16.49   15.26   16.44   15.26 Market price per common share  19.10   20.82   20.91   20.56   14.00   19.10   14.00 Market price to TBV  116.2%  131.8%  130.7%  124.7%  91.8%  116.2%  0.92 Market price to trailing 12 month EPS  10.4   12.2   12.1   11.8   7.9   10.4   7.9                PERFORMANCE RATIOS:              Return on average assets (ROAA)  1.03%  0.60%  1.04%  0.68%  0.93%  0.82%  0.82%Pre-tax pre-provision ROAA  1.42%  0.83%  1.27%  0.96%  1.01%  0.88%  1.00%Return on average equity (ROE)  11.67%  6.63%  11.07%  7.28%  10.22%  9.19%  9.02%Return on average tangible equity  14.97%  8.32%  13.51%  8.92%  12.66%  11.64%  11.21%Efficiency ratio  68.90%  80.00%  71.09%  76.78%  75.86%  74.14%  76.98%Earning asset yield  5.29%  5.23%  5.18%  5.16%  5.02%  5.25%  4.96%Cost of interest bearing liabilities  2.33%  2.32%  2.36%  2.53%  2.47%  2.30%  2.51%Net interest margin  3.48%  3.40%  3.35%  3.17%  3.12%  3.43%  3.04%Tax equivalent effect  0.01%  0.01%  0.01%  0.02%  0.01%  0.01%  0.01%Net interest margin, tax equivalent  3.49%  3.41%  3.36%  3.19%  3.13%  3.44%  3.05%Non interest income/Average assets  1.35%  1.14%  1.30%  1.19%  1.31%  1.25%  1.25%Non interest expense/Average assets  3.17%  3.45%  3.14%  3.18%  3.20%  3.31%  3.15%Net noninterest expense/Average assets  -1.82%  -2.31%  -1.84%  -1.99%  -1.88%  -2.06%  -1.90%               ASSET QUALITY RATIOS:              Gross charge-offs  49   86   195   29   -   135   66 Recoveries  3   2   13   2   16   5   25 Net charge-offs  46   84   182   27   (16)  130   41 Nonperforming loans/Total loans  0.54%  0.56%  0.53%  0.54%  0.47%  0.54%  0.47%Nonperforming assets/Loans & OREO  0.57%  0.56%  0.53%  0.54%  0.52%  0.57%  0.52%Nonperforming assets/Total assets  0.42%  0.41%  0.40%  0.40%  0.39%  0.42%  0.39%Allowance for credit loss/Nonperforming loans  264.99%  254.35%  273.68%  276.83%  329.78%  264.99%  329.78%Allowance for credit loss/Total loans  1.43%  1.41%  1.44%  1.48%  1.55%  1.43%  1.55%Net loan charge-offs/Average loans (ann.)  0.02%  0.03%  0.07%  0.01%  (0.01%)  0.02%  0.01%               CAPITAL & LIQUIDITY RATIOS:              Loans/ Deposits  87.59%  85.61%  90.81%  88.82%  90.15%  87.59%  90.15%Equity/ Assets  8.99%  8.76%  9.24%  9.53%  9.35%  8.99%  9.35%Tangible equity/Tangible assets  7.17%  6.96%  7.66%  7.97%  7.72%  7.17%  7.72%Common equity tier 1 ratio (Bank)  12.53%  12.35%  13.43%  13.19%  13.98%  12.53%  13.98%               END OF PERIOD BALANCES              Total assets  1,486,301   1,501,002   1,379,517   1,393,949   1,342,186   1,486,301   1,342,186 Total loans  1,094,719   1,088,274   1,046,735   1,029,955   1,005,390   1,094,719   1,005,390 Deposits  1,249,822   1,271,220   1,152,605   1,159,533   1,115,188   1,249,822   1,115,188 Shareholders equity  133,648   131,526   127,508   132,841   125,479   133,648   125,479 Goodwill and intangibles  29,107   29,125   23,597   23,613   23,630   29,107   23,630 Tangible equity  104,541   102,401   103,911   109,228   101,849   104,541   101,849 Mortgage servicing portfolio  1,456,374   1,432,184   1,427,318   1,406,273   1,389,805   1,456,374   1,389,805 Wealth/Brokerage assets under care  536,836   519,158   547,697   557,724   525,713   536,836   525,713 Total assets under care  3,479,511   3,452,344   3,354,532   3,357,946   3,257,704   3,479,511   3,257,704 Full-time equivalent employees  256   262   252   248   249   256   249 Period end common shares outstanding  6,359   6,483   6,494   6,624   6,676   6,359   6,676 Market capitalization (all)  121,453   134,982   135,780   136,189   93,458   121,453   93,458                AVERAGE BALANCES              Total assets  1,498,756   1,459,896   1,395,473   1,376,849   1,342,847   1,479,613   1,337,244 Total earning assets  1,399,485   1,346,354   1,301,872   1,283,407   1,246,099   1,377,780   1,246,956 Total loans  1,094,199   1,076,328   1,040,580   1,018,262   1,005,018   1,085,313   999,164 Deposits  1,270,798   1,227,449   1,163,531   1,145,964   1,120,367   1,249,885   1,106,633 Shareholders equity  132,353   131,944   130,647   128,608   122,510   131,849   121,474 Goodwill and intangibles  29,116   26,714   23,605   23,621   23,638   27,742   23,646 Tangible equity  103,237   105,230   107,042   104,987   98,872   104,107   97,828 Average basic shares outstanding  6,448   6,481   6,575   6,660   6,692   6,464   6,703 Average diluted shares outstanding  6,459   6,502   6,599   6,675   6,700   6,483   6,715                 SB FINANCIAL GROUP, INC.  Rate Volume Analysis - (Unaudited)  For the Three Months Ended Jun. 30, 2025 and 2024          ($ in thousands) Three Months Ended Jun. 30, 2025  Three Months Ended Jun. 30, 2024    Average Average  Average Average Assets BalanceInterestRate  BalanceInterestRate              Taxable securities $198,558 $1,1332.29%  $209,347 $1,2262.36%  Overnight Cash  101,964  1,1244.42%   27,885  3845.54%  Nontaxable securities  4,764  352.95%   4,761  373.13%  Loans, net  1,094,199  16,1755.93%   1,005,018  14,0075.61%                     Total earning assets  1,399,485  18,4675.29%   1,247,011  15,6545.05%              Cash on hand  4,951      4,448     Allowance for loan losses  (15,483)     (15,647)    Premises and equipment  21,719      20,978     Other assets  88,084      86,969                       Total assets $1,498,756     $1,343,759                Liabilities           Savings, MMDA and interest bearing demand$740,677 $3,2231.75%  $637,561 $2,7761.75%  Time deposits  276,376  2,3743.44%   257,359  2,4323.80%  Repurchase agreements & other  10,518  210.80%   12,050  361.20%  Advances from Federal Home Loan Bank  35,000  3664.19%   35,374  3704.21%  Trust preferred securities  10,310  1616.26%   10,310  1877.29%  Subordinated debt  19,707  1943.95%   19,658  1943.97%                    Total interest bearing liabilities  1,092,588  6,3392.33%   972,312  5,9952.48%              Non interest bearing demand  253,745  -    225,447  -                     Total funding  1,346,333  1.89%   1,197,759  2.01%                Other liabilities  20,070      22,578                       Total liabilities  1,366,403      1,220,337                 Equity  132,353      122,510                       Total liabilities and equity $1,498,756     $1,342,847                 Net interest income  $12,128    $9,659               Net interest income as a percent of average interest-earning assets - GAAP measure   3.48%    3.12%              Net interest income as a percent of average interest-earning assets - non GAAP3.49%    3.13%   - Computed on a fully tax equivalent (FTE) basis                       Six Months Ended Jun. 30, 2025  Six Months Ended Jun. 30, 2024    Average Average  Average Average Assets BalanceInterestRate  BalanceInterestRate              Taxable securities $200,968 $2,3022.31%  $214,418 $2,5002.34%  Overnight Cash $86,379  1,9304.51%   25,744  7035.49%  Nontaxable securities  5,120  732.88%   4,760  743.13%  Loans, net  1,085,313  31,5345.86%   999,164  27,6775.57%                     Total earning assets  1,377,780  35,8395.25%   1,244,086  30,9545.00%              Cash on hand  4,796      4,479     Allowance for loan losses  (15,361)     (15,739)    Premises and equipment  21,403      21,130     Other assets  90,995      80,418                       Total assets $1,479,613     $1,334,374                Liabilities           Savings, MMDA and interest bearing demand$725,729 $6,1821.72%  $621,950 $5,3011.71%  Time deposits  276,315  4,7673.48%   257,975  4,9973.90%  Repurchase agreements & Other  11,805  450.77%   14,021  701.00%  Advances from Federal Home Loan Bank  35,022  7284.19%   43,202  9834.58%  Trust preferred securities  19,701  3213.29%   10,310  3757.31%  Subordinated debt  19,665  3893.99%   19,652  3893.98%                    Total interest bearing liabilities  1,088,237  12,4322.30%   967,110  12,1152.52%              Non interest bearing demand  247,841  1.88%   226,708  2.04%                    Total funding  1,336,078      1,193,818                 Other liabilities  11,686      21,952                       Total liabilities  1,347,764      1,215,770                 Equity  131,849      121,474                       Total liabilities and equity $1,479,613     $1,337,244                 Net interest income  $23,407    $18,839               Net interest income as a percent of average interest-earning assets - GAAP measure   3.43%    3.05%              Net interest income as a percent of average interest-earning assets - non GAAP3.44%    3.06%   - Computed on a fully tax equivalent (FTE) basis                     Non-GAAP reconciliation Three Months Ended Six Months Ended           ($ in thousands, except per share & ratios) Jun. 30, 2025 Jun. 30, 2024 Jun. 30, 2025 Jun. 30, 2024           Total Operating Revenue $17,176  $14,045  $32,562  $27,176  Adjustment to (deduct)/add OMSR recapture/impairment * (159)  (38)  (170)  (219)           Adjusted Total Operating Revenue  17,017   14,007   32,392   26,957                      Total Operating Expense $11,852  $10,671  $24,262  $20,953  Adjustment for merger expenses  -   -   (726)  -            Adjusted Total Operating Expense  11,852   10,671   23,536   20,953                      Income before Income Taxes  4,727   3,374   7,316   6,223  Adjustment for OMSR*/Merger Expenses  (159)  (38)  556   (219)           Adjusted Income before Income Taxes  4,568   3,336   7,872   6,004                      Provision for Income Taxes  875   281   1,306   742  Adjustment for OMSR/Merger Expenses **  (33)  (8)  117   (46)           Adjusted Provision for Income Taxes  842   273   1,423   696                      Net Income  3,852   3,113   6,010   5,481  Adjustment for OMSR*/Merger Expenses  (126)  (30)  439   (173)           Adjusted Net Income  3,726   3,083   6,449   5,308                      Diluted Earnings per Share  0.60   0.47   0.93   0.82  Adjustment for OMSR*/Merger Expenses  (0.02)  (0.01)  0.07   (0.03)           Adjusted Diluted Earnings per Share $0.58  $0.46  $0.99  $0.79                      Return on Average Assets  1.03%  0.93%  0.82%  0.82% Adjustment for OMSR*/Merger Expenses  -0.03%  -0.01%  0.03%  -0.01%           Adjusted Return on Average Assets  1.00%  0.92%  0.85%  0.81%           *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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