SB Financial Group Announces First Quarter 2025 Results

/EIN News/ -- 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 Highlights	Three Months Ended
($ in thousands, except per share & ratios)	Mar. 2025			Mar. 2024			% Change
Operating 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/M
Noninterest 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. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Prior Year Growth
Mortgage 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. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Prior Year Growth
Noninterest 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. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Annual Growth
Commercial	$	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. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Annual Growth
Non-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. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024				Annual Change
Commercial & 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. Klein
Chairman, President and
Chief Executive Officer
Mark.Klein@YourStateBank.com

Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
Tony.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				March
Interest 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				March
SUMMARY 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					Average
Assets		Balance			Interest		Rate				Balance			Interest		Rate
	Taxable securities	$	196,880		$	1,276	2.63	%			$	210,252		$	1,413	2.70	%
	Overnight Cash		66,460			699	4.27	%				20,729			180	3.48	%
	Nontaxable securities		6,686			38	2.30	%				6,445			37	2.30	%
	Loans, net		1,076,328			15,359	5.79	%				993,310			13,670	5.52	%
	Total earning assets		1,346,354			17,372	5.23	%				1,230,736			15,300	4.99	%
	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		$	2,959	1.69	%			$	605,243		$	2,525	1.67	%
	Time deposits		276,253			2,393	3.51	%				258,592			2,565	3.98	%
	Repurchase agreements & other		13,106			24	0.74	%				15,993			34	0.85	%
	Advances from Federal Home Loan Bank		35,044			362	4.19	%				51,030			613	4.82	%
	Trust preferred securities		10,310			160	6.29	%				10,310			188	7.31	%
	Subordinated debt		19,694			195	4.02	%				19,646			195	3.98	%
	Total interest bearing liabilities		1,063,731			6,093	2.32	%				960,814			6,120	2.55	%
	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 measure						3.40	%								2.99	%
	Net interest income as a percent of average interest-earning assets - non GAAP						3.41	%								3.00	%
	- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three 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