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