DEFIANCE, Ohio, July 23, 2026 (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 quarter ended June 30, 2026.

Second Quarter 2026 Highlights compared to the second quarter of the prior year include:

Net Income, GAAP net income and Diluted Earnings per Share ("DEPS") were $4.5 million, or $0.72 per DEPS, an improvement from the $3.9 million, or $0.60 per DEPS in the prior-year quarter. Net income, adjusted for Originated Mortgage Servicing Rights ("OMSR") and merger costs, was $4.5 million, up 21.8 percent compared to $3.7 million for the prior-year period. Adjusted DEPS of $0.73 was also up 25.9 percent from the adjusted prior-year.
Total loans reached $1.19 billion, reflecting an increase of $94.8 million, or 8.7 percent, from the prior-year quarter and an improvement of $8.4 million, or 0.71 percent, from the linked quarter. This performance marks SBFG's ninth consecutive quarter of expansion in our loan portfolio.
Total deposits climbed to $1.39 billion, increasing by $141.3 million, or 11.3 percent, from the prior-year quarter, and up $19.3 million, or 1.4 percent, from the linked quarter.
Tangible book value ("TBV") per common share finished the quarter at $19.04, climbing $2.60 per share, or 15.8 percent, from $16.44 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $22.57 at quarter end.

Six months ended June 30, 2026 Highlights compared to the same period of the prior-year:

GAAP net income increased to $8.8 million, a 46.3 percent expansion compared to the $6.0 million reported for the previous six months, and diluted EPS was $1.41, an improvement of 51.6 percent from $0.93.
Net interest income rose to $25.7 million, representing a 9.7 percent improvement from the $23.4 million reported in the prior-year period.
Noninterest income increased by 5.9 percent to $9.7 million compared to $9.2 million reported in the previous six months.
Noninterest expense remained well controlled, decreasing by 0.8 percent to $24.1 million from $24.3 million in the prior-year period.


Earnings Highlights	Three Months Ended								Six Months Ended
($ in thousands, except per share & ratios)	Jun. 2026			Jun. 2025			% Change		Jun. 2026			Jun. 2025			% Change
Operating revenue	$	17,941		$	17,176		4.5	%	$	35,365		$	32,562		8.6	%
Interest income		19,820			18,467		7.3	%		39,127			35,839		9.2	%
Interest expense		6,866			6,339		8.3	%		13,461			12,432		8.3	%
Net interest income		12,954			12,128		6.8	%		25,666			23,407		9.7	%
Provision for credit losses		299			597		49.9	%		513			984		-47.9	%
Noninterest income		4,987			5,048		-1.2	%		9,699			9,155		5.9	%
Noninterest expense		12,137			11,852		2.4	%		24,066			24,262		-0.8	%
Net income		4,497			3,852		16.7	%		8,793			6,010		46.3	%
Adjusted Earnings per diluted share		0.73			0.58		25.9	%		1.36			1.00		36.0	%
Earnings per diluted share		0.72			0.60		20.0	%		1.41			0.93		51.6	%
Adjusted Return on Avg. Assets		1.13	%		1.00	%	13.0	%		1.07	%		0.85	%	25.9	%
Return on average assets		1.12	%		1.03	%	8.7	%		1.11	%		0.82	%	35.4	%
Adjusted Return on Avg. Equity		12.55	%		11.29	%	11.2	%		11.81	%		10.54	%	12.0	%
Return on average equity		12.44	%		11.67	%	6.6	%		12.24	%		9.19	%	33.2	%

"Net income for the second quarter of 2026 was $4.5 million, a 16.7 percent increase from the prior-year quarter, with GAAP DEPS of $0.72, an improvement of 20.0 percent from the prior-year quarter," said Mark A. Klein, Chairman, President, and Chief Executive Officer. "This marks our 62nd consecutive quarter of profitability and reflects the continued benefits of not only our expanded balance sheet scale, but also the sustained, robust performance of our diversified community banking and fee-based business lines."

RESULTS OF OPERATIONS

In the second quarter of 2026, total operating revenue increased to $17.9 million, 4.5 percent improvement from $17.2 million in the prior-year quarter and 3.0 percent from $17.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income, which was partially offset by a modest reduction in noninterest income due to lower net mortgage servicing fees. Net interest income for the quarter totaled $13.0 million, compared with $12.1 million in the prior-year period and $12.7 million in the linked quarter. The year-over-year expansion was driven by a rise in interest income on loans, which climbed to $17.5 million. Total interest expense increased to $6.9 million, up 8.3 percent from $6.3 million in the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin decreased approximately 5 basis points from 3.48 percent in the prior-year quarter to 3.43 percent.

Total loans increased $94.8 million from the prior-year quarter and $8.4 million from the linked quarter. Total deposits at quarter end increased $141.3 million, or 11.3 percent, to $1.39 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across the Company’s markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of a diversified revenue business model.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.9 million, a decrease of $236,000 from the prior-year quarter. Loan servicing fees added $934,000 to revenue, reflecting an increase of $30,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2026 was a negative $54,000, compared with a recapture of $159,000 in the second quarter of 2025.


Mortgage Banking
($ in thousands)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Prior Year Growth
Mortgage originations	$	79,346		$	65,768		$	72,398		$	67,609		$	97,901		$	(18,555	)
Mortgage sales		70,253			53,420			70,361			66,408			74,313			(4,060	)
Mortgage servicing portfolio		1,504,657			1,482,052			1,479,982			1,470,360			1,456,374			48,283
Mortgage servicing rights		15,953			15,728			15,254			15,347			15,458			495


Revenue
Loan servicing fees		934			928			928			914			904			30
OMSR amortization		(497	)		(529	)		(572	)		(455	)		(469	)		(28	)
Net administrative fees		437			399			356			459			435			2
OMSR valuation adjustment		(54	)		452			(157	)		(301	)		159			(213	)
Net loan servicing fees		383			851			199			158			594			(211	)
Gain on sale of mortgages		1,541			978			1,272			1,328			1,566			(25	)
Mortgage banking revenue, net	$	1,924		$	1,829		$	1,471		$	1,486		$	2,160		$	(236	)

Noninterest Income and Noninterest Expense

"Noninterest income for the second quarter of 2026 reached $5.0 million, proving highly resilient compared to the prior-year base of $5.0 million," Mr. Klein noted. "Our wealth management fees improved to $955,000, from $859,000 a year ago, while title insurance contributed $577,000 to total revenue, illustrating the strength of our team's cross-functional internal referral strategies."


Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Prior Year Growth
Noninterest Income (NII)	$	4,987		$	4,712		$	3,708		$	4,244		$	5,048		$	(61	)
NII / Total Revenue		27.8	%		27.0	%		22.6	%		25.6	%		29.4	%		-1.6	%
NII / Average Assets		1.2	%		1.2	%		1.0	%		1.1	%		1.4	%		-0.2	%
Total Revenue Growth		4.5	%		13.3	%		6.3	%		15.9	%		22.3	%		-17.8	%

Noninterest Expense (NIE)	$	12,137		$	11,929		$	11,239		$	11,498		$	11,852		$	285
Efficiency Ratio		67.3	%		68.1	%		68.1	%		69.0	%		68.9	%		-1.6	%
NIE / Average Assets		3.0	%		3.1	%		2.9	%		3.0	%		3.2	%		-0.2	%
Net Noninterest Expense/Avg. Assets		-1.8	%		-1.9	%		-1.9	%		-1.9	%		-1.8	%		0.0	%
Total Expense Growth		2.4	%		-3.9	%		2.1	%		4.5	%		11.1	%		-8.7	%

Noninterest expense for the second quarter of 2026 rose 2.4 percent to $12.1 million from $11.9 million in the prior-year quarter, predominantly driven by an increase of $410,000 in salaries and employee benefits, which totaled $7.0 million, to support revenue-producing lenders. This increase was heavily mitigated by lower data-processing expenses, which decreased to $693,000 from $888,000 in the prior-year quarter as previous merger-related and systems-integration costs fully wound down. "Our core efficiency ratio for the second quarter of 2026 improved to 67.32 percent, compared to 68.90 percent in the second quarter of 2025 and 68.12 percent in the linked quarter," stated Mr. Klein. "This positive operating leverage reflects our disciplined approach to managing overhead while proactively funding expansion in our growth markets."

Balance Sheet

As of June 30, 2026, SB Financial reported total assets of $1.62 billion, representing an increase of $74.7 million from December 31, 2025, and $133.8 million, or 9.0 percent, from June 30, 2025. The year-over-year asset growth was primarily driven by steady organic loan generation across commercial and agricultural lines. Cash and due from banks increased by $58.7 million from the prior-year period to $138.2 million, supported by sustained deposit gathering and investment portfolio cash flows. Key balance-sheet metrics for the quarter included a loan-to-deposit ratio of 85.51 percent and a loan-to-asset ratio of 73.43 percent, both of which remained well-aligned with target operating bands.

Total deposits at quarter end reached $1.39 billion, an increase of $141.3 million, or 11.3 percent, from the prior-year quarter, driven by strong client retention and expanded commercial deposit relationships. Noninterest-bearing demand deposits totaled $258.6 million, accounting for 18.6 percent of the total deposit portfolio. Shareholders’ equity finished the period at $146.7 million, representing an increase of $13.1 million, or 9.8 percent, from the prior-year period.

During the second quarter, SB Financial repurchased approximately 28,000 shares, roughly flat compared to the linked quarter, reflecting a measured approach to capital allocation and ongoing evaluation of market dynamics and corporate priorities during the period. The Company remains committed to a prudent capital allocation strategy, supporting shareholder returns through dividends and share buybacks while preserving the financial flexibility to fund organic expansion, strategic initiatives, and capital stability.

"As we enter the second half of 2026, we are operating from a strong fundamental foundation characterized by top-tier capital ratios, exceptional credit quality, and a resilient core deposit franchise," stated Mr. Klein. "Our consistent organic loan expansion highlights our strong client relationship model and localized lending expertise, while our robust reserve coverage and near-zero delinquency levels reflect our disciplined approach to credit administration. Supported by our diverse fee-generating businesses and careful expense management, we are well-positioned to maintain positive operating leverage and drive long-term value for our shareholders."


Loan Balances
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Annual Growth
Commercial	$	111,128		$	112,226		$	113,878		$	117,581		$	118,984		$	(7,856	)
% of Total		9.3	%		9.5	%		9.6	%		10.6	%		10.9	%		-6.6	%
Commercial RE		611,274			601,556			596,983			535,307			525,671			85,603
% of Total		51.4	%		50.9	%		50.6	%		48.2	%		48.0	%		16.3	%
Agriculture		81,341			78,569			76,514			65,150			60,924			20,417
% of Total		6.8	%		6.7	%		6.5	%		5.9	%		5.6	%		33.5	%
Residential RE		295,481			299,741			304,741			309,140			310,126			(14,645	)
% of Total		24.8	%		25.4	%		25.8	%		27.8	%		28.3	%		-4.7	%
Consumer & Other		90,335			89,043			88,475			83,367			79,014			11,321
% of Total		7.6	%		7.5	%		7.5	%		7.5	%		7.2	%		14.3	%
Total Loans	$	1,189,559		$	1,181,135		$	1,180,591		$	1,110,545		$	1,094,719		$	94,840
Total Growth Percentage																	8.7	%


Deposit Balances
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Annual Growth
Non-Int DDA	$	258,576		$	248,239		$	254,063		$	246,725		$	241,245		$	17,331
% of Total		18.6	%		18.1	%		19.4	%		19.5	%		19.3	%		7.2	%
Interest DDA		206,593			215,594			202,501			194,420			205,581			1,012
% of Total		14.9	%		15.7	%		15.5	%		15.4	%		16.4	%		0.5	%
Savings		325,675			333,662			296,484			290,111			282,311			43,364
% of Total		23.4	%		24.3	%		22.7	%		23.0	%		22.6	%		15.4	%
Money Market		315,363			300,028			280,896			261,953			249,536			65,827
% of Total		22.7	%		21.9	%		21.5	%		20.7	%		20.0	%		26.4	%
Time Deposits		284,940			274,300			273,300			269,313			271,149			13,791
% of Total		20.5	%		20.0	%		20.9	%		21.3	%		21.7	%		5.1	%
Total Deposits	$	1,391,147		$	1,371,823		$	1,307,244		$	1,262,522		$	1,249,822		$	141,325
Total Growth Percentage																	11.3	%

Asset Quality

As of June 30, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.4 million, representing 0.27 percent of total assets, reflecting a decrease of $1.8 million from $6.2 million (0.41 percent of total assets) in the prior-year quarter. Within total nonperforming assets, nonaccruing loans declined to $3.5 million, while foreclosed properties and other assets stood at $936,000. The allowance for credit losses remained strong at 1.38 percent of total loans, providing coverage of 470.2 percent of nonperforming loans. This reserve level represents an improvement from the prior-year period, reflecting the Company’s disciplined credit risk framework. Annualized net loan charge-offs to average loans remained very low at 6 basis points, compared to 1 basis point in the linked quarter and 2 basis points in the prior-year quarter, with gross charge-offs totaling $196,000. Collectively, these metrics underscore SB Financial's continued focus on disciplined underwriting and effective credit administration.

"Our credit results for the second quarter continue to demonstrate excellent stability across the loan portfolio and steady progress in resolving nonperforming assets," said Mr. Klein. "With nonperforming assets declining compared to the linked quarter and our allowance for credit losses providing coverage of nonperforming loans, our reserve position remains highly conservative. We remain committed to diligent underwriting and proactive risk management to protect the balance sheet as we support measured loan expansion across our markets."


Nonperforming Assets	Reconcile to 10-Q															Annual Change
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Annual Change
Commercial & Agriculture	$	1,304		$	1,359		$	2,256		$	2,243		$	3,306		$	(2,002	)
% of Total Com./Ag. loans		0.68	%		0.71	%		1.18	%		1.23	%		1.84	%		-60.6	%
Commercial RE		339			668			771			778			784			(445	)
% of Total CRE loans		0.06	%		0.11	%		0.13	%		0.15	%		0.15	%		-56.8	%
Residential RE		1,476			1,439			1,322			1,400			1,585			(109	)
% of Total Res. RE loans		0.50	%		0.48	%		0.43	%		0.45	%		0.51	%		-6.9	%
Consumer & Other		367			233			230			195			197			170
% of Total Con./Oth. loans		0.41	%		0.26	%		0.26	%		0.23	%		0.25	%		86.3	%
Total Nonaccruing Loans		3,486			3,699			4,579			4,616			5,872			(2,386	)
% of Total loans		0.29	%		0.31	%		0.39	%		0.42	%		0.54	%		-40.6	%
Foreclosed Assets and Other Assets		936			974			104			237			284			652
Total Change (%)																N/M
Total Nonperforming Assets	$	4,422		$	4,673		$	4,683		$	4,853		$	6,156		$	(1,734	)
% of Total assets		0.27	%		0.29	%		0.30	%		0.32	%		0.41	%		-28.17	%

Webcast and Conference Call

The Company will hold the second quarter 2026 earnings conference call and webcast on July 24, 2026, at 11:00 a.m. EST. 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 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. 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 which 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)

	June			March			December			September			June
($ in thousands)		2026			2026			2025			2025			2025

ASSETS
Cash and due from banks	$	138,152		$	126,293		$	71,543		$	85,025		$	79,463
Interest bearing time deposits		2,455			1,965			1,140			2,025			1,565
Available-for-sale securities		179,026			183,626			188,626			193,190			195,955
Loans held for sale		7,438			7,203			1,761			4,736			12,774
Loans, net of unearned income		1,189,559			1,181,135			1,180,591			1,110,545			1,094,719
Allowance for credit losses		(16,395	)		(16,388	)		(16,114	)		(15,943	)		(15,645	)
Premises and equipment, net		21,088			21,295			21,688			21,764			21,857
Federal Reserve and FHLB Stock, at cost		5,502			5,463			5,610			5,466			5,466
Foreclosed assets		936			974			104			237			284
Interest receivable		5,455			5,499			5,490			5,455			5,299
Goodwill		27,158			27,158			27,158			27,158			27,158
Cash value of life insurance		32,354			32,401			32,208			32,004			31,060
Mortgage servicing rights		15,953			15,728			15,254			15,347			15,458
Other assets		11,383			12,246			10,308			9,254			10,888

Total assets	$	1,620,064		$	1,604,598		$	1,545,367		$	1,496,263		$	1,486,301



LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing demand	$	258,576		$	248,239		$	254,063		$	246,725		$	241,245
Interest bearing demand		206,593			215,594			202,501			194,420			205,581
Savings		325,675			333,662			296,484			290,111			282,311
Money market		315,363			300,028			280,896			261,953			249,536
Time deposits		284,940			274,300			273,300			269,313			271,149

Total deposits		1,391,147			1,371,823			1,307,244			1,262,522			1,249,822

Short-term borrowings		6,732			9,433			9,230			10,976			15,640
Federal Home Loan Bank advances		22,500			27,500			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		19,763			19,751			19,739			19,726			19,715
Interest payable		2,470			2,553			2,460			2,739			2,258
Other liabilities		20,402			19,573			20,148			18,051			19,908

Total liabilities		1,473,324			1,460,943			1,404,131			1,359,324			1,352,653

Shareholders' Equity
Common stock		61,319			61,319			61,319			61,319			61,319
Additional paid-in capital		15,275			15,065			15,160			15,086			15,139
Retained earnings		133,125			129,631			126,311			123,370			120,273
Accumulated other comprehensive loss		(21,854	)		(21,861	)		(21,481	)		(23,412	)		(25,492	)
Treasury stock		(41,125	)		(40,499	)		(40,073	)		(39,424	)		(37,591	)

Total shareholders' equity		146,740			143,655			141,236			136,939			133,648

Total liabilities and shareholders' equity	$	1,620,064		$	1,604,598		$	1,545,367		$	1,496,263		$	1,486,301

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			June
Interest income	2026			2026		2025			2025		2025		2026			2025
Loans
Taxable	$	17,498		$	17,246	$	17,234		$	16,449	$	16,059	$	34,744		$	31,303
Tax exempt	98			99		107			117		116		197			231
Securities
Taxable	1,006			1,029		1,096			1,097		1,133		2,035			2,302
Tax exempt	36			36		36			35		35		72			73
Other interest income	1,182			897		799			1,111		1,124		2,079			1,930

Total interest income	19,820			19,307		19,272			18,809		18,467		39,127			35,839

Interest expense
Deposits	6,237			5,957		5,820			5,721		5,597		12,194			10,949
Repurchase agreements & other	7			14		22			28		21		21			45
Federal Home Loan Bank advances	234			285		370			369		366		519			728
Trust preferred securities	145			144		154			162		161		289			321
Subordinated debt	243			195		194			195		194		438			389

Total interest expense	6,866			6,595		6,560			6,475		6,339		13,461			12,432


Net interest income	12,954			12,712		12,712			12,334		12,128		25,666			23,407

Provision for credit losses	299			214		198			124		597		513			984

Net interest income after provision
for credit losses	12,655			12,498		12,514			12,210		11,531		25,153			22,423

Noninterest income
Wealth management fees	955			941		900			912		859		1,896			1,723
Customer service fees	917			910		892			887		886		1,827			1,765
Gain on sale of mtg. loans & OMSR	1,541			978		1,272			1,328		1,566		2,519			2,415
Mortgage loan servicing fees, net	383			851		199			158		594		1,234			1,205
Gain on sale of non-mortgage loans	62			144		38			8		82		206			97
Title insurance revenue	577			485		525			544		582		1,062			979
Gain (loss) on sale of assets		(9	)	8		-			-		-			(1	)	-
Other	561			395			(118	)	407		479		956			971

Total noninterest income	4,987			4,712		3,708			4,244		5,048		9,699			9,155

Noninterest expense
Salaries and employee benefits	7,005			6,096		6,047			6,198		6,595		13,101			12,832
Net occupancy expense	802			882		822			801		793		1,684			1,686
Equipment expense	1,226			1,244		1,154			1,188		1,121		2,470			2,193
Data processing fees	693			726		790			723		888		1,419			2,327
Professional fees	844			1,016		805			863		892		1,860			1,926
Marketing expense	255			277		122			174		190		532			355
Telephone and communication expense	126			118		124			123		125		244			264
Postage and delivery expense	146			187		140			157		107		333			244
State, local and other taxes	221			288		331			268		268		509			492
Employee expense	177			184		158			255		176		361			350
Other expenses	642			911		746			748		697		1,553			1,593

Total noninterest expense	12,137			11,929		11,239			11,498		11,852		24,066			24,262


Income before income tax expense	5,505			5,281		4,983			4,956		4,727		10,786			7,316

Income tax expense	1,008			985		1,065			910		875		1,993			1,306

Net income	$	4,497		$	4,296	$	3,918		$	4,046	$	3,852	$	8,793		$	6,010

Common share data:
Basic earnings per common share	$	0.72		$	0.69	$	0.63		$	0.64	$	0.60	$	1.41		$	0.93

Diluted earnings per common share	$	0.72		$	0.69	$	0.63		$	0.64	$	0.60	$	1.41		$	0.93

Average shares outstanding (in thousands):
Basic:	6,205			6,230		6,252			6,297		6,448		6,218			6,464
Diluted:	6,220			6,243		6,266			6,311		6,459		6,233			6,483

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			June
SUMMARY OF OPERATIONS		2026			2026			2025			2025			2025			2026			2025

Net interest income	$	12,954		$	12,712		$	12,712		$	12,334		$	12,128		$	25,666		$	23,407
Tax-equivalent adjustment		36			36			38			40			40			72			81
Tax-equivalent net interest income		12,990			12,748			12,750			12,374			12,168			25,738			23,488
Provision for credit loss		299			214			198			124			597			513			984
Noninterest income		4,987			4,712			3,708			4,244			5,048			9,699			9,155
Total operating revenue		17,941			17,424			16,420			16,578			17,176			35,365			32,562
Noninterest expense		12,137			11,929			11,239			11,498			11,852			24,066			24,262
Pre-tax pre-provision income		5,804			5,495			5,181			5,080			5,324			11,299			8,300
Net income		4,497			4,296			3,918			4,046			3,852			8,793			6,010

PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.72			0.69			0.63			0.64			0.60			1.41			0.93
Diluted earnings per share		0.72			0.69			0.63			0.64			0.60			1.41			0.93
Common dividends		0.160			0.155			0.155			0.150			0.150			0.315			0.295
Book value per common share		23.70			23.10			22.65			21.85			21.02			23.70			21.02
Tangible book value per common share (TBV)		19.04			18.45			18.00			17.21			16.44			19.04			16.44
Market price per common share		25.27			21.00			22.27			19.29			19.10			25.27			19.10
Market price to TBV		132.7	%		113.8	%		123.7	%		112.1	%		116.2	%		132.7	%		116.2	%
Market price to trailing 12 month EPS		9.4			8.2			10.1			9.1			10.4			9.4			10.4

PERFORMANCE RATIOS:
Return on average assets (ROAA)		1.12	%		1.10	%		1.01	%		1.07	%		1.03	%		1.11	%		0.82	%
Pre-tax pre-provision ROAA		1.45	%		1.41	%		1.34	%		1.34	%		1.42	%		1.52	%		1.21	%
Return on average equity (ROE)		12.44	%		12.04	%		11.08	%		12.08	%		11.67	%		12.24	%		9.19	%
Return on average tangible equity		15.53	%		15.06	%		13.97	%		15.47	%		14.97	%		15.30	%		11.64	%
Efficiency ratio		67.32	%		68.12	%		68.09	%		69.00	%		68.90	%		67.72	%		74.14	%
Earning asset yield		5.26	%		5.29	%		5.32	%		5.31	%		5.29	%		5.26	%		5.25	%
Cost of interest bearing liabilities		2.34	%		2.31	%		2.34	%		2.33	%		2.33	%		2.31	%		2.30	%
Net interest margin		3.43	%		3.48	%		3.51	%		3.48	%		3.48	%		3.45	%		3.43	%
Tax equivalent effect		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Net interest margin, tax equivalent		3.44	%		3.49	%		3.52	%		3.50	%		3.49	%		3.46	%		3.44	%
Non interest income/Average assets		1.24	%		1.21	%		0.96	%		1.12	%		1.35	%		1.23	%		1.25	%
Non interest expense/Average assets		3.03	%		3.06	%		2.90	%		3.04	%		3.17	%		3.04	%		3.31	%
Net noninterest expense/Average assets		-1.78	%		-1.85	%		-1.94	%		-1.92	%		-1.82	%		-1.82	%		-2.06	%

ASSET QUALITY RATIOS:
Gross charge-offs		196			33			133			11			49			229			135
Recoveries		3			8			3			9			3			10			5
Net charge-offs		193			25			130			2			46			219			130
Nonperforming loans/Total loans		0.29	%		0.31	%		0.39	%		0.42	%		0.54	%		0.29	%		0.54	%
Nonperforming assets/Loans & OREO		0.37	%		0.40	%		0.40	%		0.44	%		0.56	%		0.37	%		0.56	%
Nonperforming assets/Total assets		0.27	%		0.29	%		0.30	%		0.32	%		0.41	%		0.27	%		0.41	%
Allowance for credit loss/Nonperforming loans		470.31	%		443.04	%		351.91	%		345.39	%		266.43	%		470.31	%		266.43	%
Allowance for credit loss/Total loans		1.38	%		1.39	%		1.36	%		1.44	%		1.43	%		1.38	%		1.43	%
Net loan charge-offs/Average loans (ann.)		0.06	%		0.01	%		0.04	%		0.00	%		0.02	%		0.04	%		0.02	%

CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		85.51	%		86.10	%		90.31	%		87.96	%		87.59	%		85.51	%		87.59	%
Equity/ Assets		9.06	%		8.95	%		9.14	%		9.15	%		8.99	%		9.06	%		8.99	%
Tangible equity/Tangible assets		7.41	%		7.28	%		7.40	%		7.35	%		7.17	%		7.41	%		7.17	%
Common equity tier 1 ratio (Bank)		12.07	%		12.11	%		11.78	%		12.48	%		12.53	%		12.07	%		12.53	%

END OF PERIOD BALANCES
Total assets		1,620,064			1,604,598			1,545,367			1,496,263			1,486,301			1,620,064			1,486,301
Total loans		1,189,559			1,181,135			1,180,591			1,110,545			1,094,719			1,189,559			1,094,719
Deposits		1,391,147			1,371,823			1,307,244			1,262,522			1,249,822			1,391,147			1,249,822
Shareholders equity		146,740			143,655			141,236			136,939			133,648			146,740			133,648
Goodwill and intangibles		28,870			28,929			28,989			29,048			29,107			28,870			29,107
Tangible equity		117,870			114,726			112,247			107,891			104,541			117,870			104,541
Mortgage servicing portfolio		1,504,657			1,482,052			1,479,982			1,470,360			1,456,374			1,504,657			1,456,374
Wealth/Brokerage assets under care		556,930			556,930			566,004			563,036			536,836			556,930			536,836
Total assets under care		3,681,651			3,643,580			3,591,353			3,529,659			3,479,511			3,681,651			3,479,511
Full-time equivalent employees		258			258			252			253			256			258			256
Period end common shares outstanding		6,191			6,219			6,236			6,268			6,359			6,191			6,359
Market capitalization (all)		156,436			130,597			138,883			120,907			121,453			156,436			121,453

AVERAGE BALANCES
Total assets		1,608,355			1,579,781			1,536,215			1,502,389			1,498,756			1,594,416			1,479,613
Total earning assets		1,512,017			1,479,667			1,436,207			1,404,330			1,399,485			1,498,829			1,377,780
Total loans		1,193,207			1,186,225			1,158,567			1,104,175			1,094,199			1,184,307			1,085,313
Deposits		1,381,439			1,347,351			1,299,512			1,270,783			1,270,798			1,364,852			1,249,885
Shareholders equity		145,034			144,659			140,315			132,866			132,353			144,816			131,849
Goodwill and intangibles		28,899			28,959			29,027			29,077			29,116			28,929			27,742
Tangible equity		116,135			115,700			111,288			103,789			103,237			115,887			104,107
Average basic shares outstanding		6,205			6,230			6,252			6,297			6,448			6,218			6,464
Average diluted shares outstanding		6,220			6,243			6,266			6,311			6,459			6,233			6,483

SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three & Six Months Ended Jun. 30, 2026 and 2025

($ in thousands)	Three Months Ended Jun. 30, 2026							Three Months Ended Jun. 30, 2025
	Average					Average		Average					Average
Assets	Balance			Interest		Rate		Balance			Interest		Rate

Taxable securities	$	182,269		$	1,006	2.21	%	$	198,558		$	1,133	2.29	%
Overnight Cash		131,774			1,182	3.60	%		101,964			1,124	4.42	%
Nontaxable securities		4,767			36	3.03	%		4,764			35	2.95	%
Loans, net		1,193,207			17,596	5.91	%		1,094,199			16,176	5.93	%

Total earning assets		1,512,017			19,820	5.26	%		1,399,485			18,468	5.29	%

Cash on hand		5,464							4,951
Allowance for loan losses		(16,460	)						(15,483	)
Premises and equipment		21,245							21,719
Other assets		86,089							88,084

Total assets	$	1,608,355						$	1,498,756

Liabilities
Savings, MMDA and interest bearing demand	$	836,830		$	3,949	1.89	%	$	740,677		$	3,223	1.75	%
Time deposits		279,469			2,288	3.28	%		276,376			2,374	3.45	%
Repurchase agreements & other		7,357			7	0.38	%		10,518			21	0.80	%
Advances from Federal Home Loan Bank		22,995			234	4.08	%		35,000			366	4.19	%
Trust preferred securities		10,310			145	5.64	%		10,310			161	6.26	%
Subordinated debt		19,755			243	4.93	%		19,707			194	3.95	%

Total interest bearing liabilities		1,176,716			6,866	2.34	%		1,092,588			6,339	2.33	%

Non interest bearing demand		265,140			-				253,745			-

Total funding		1,441,856				1.91	%		1,346,333				1.89	%
						44.20	%					1
Other liabilities		21,465							20,070

Total liabilities		1,463,321							1,366,403

Equity		145,034							132,353

Total liabilities and equity	$	1,608,355						$	1,498,756

Net interest income				$	12,954						$	12,129

Net interest income as a percent of average interest-earning assets - GAAP measure						3.44	%						3.48	%

Net interest income as a percent of average interest-earning assets - non GAAP						3.44	%						3.49	%
- Computed on a fully tax equivalent (FTE) basis

	Six Months Ended Jun. 30, 2026							Six Months Ended Jun. 30, 2025
	Average					Average		Average					Average
Assets	Balance			Interest		Rate		Balance			Interest		Rate

Taxable securities	$	185,421		$	2,035	2.21	%	$	200,968		$	2,302	2.31	%
Overnight Cash		124,334			2,079	3.37	%		86,379			1,930	4.51	%
Nontaxable securities		4,767			72	3.05	%		5,120			73	2.88	%
Loans, net		1,184,307			34,941	5.95	%		1,085,313			31,535	5.86	%

Total earning assets		1,498,829			39,127	5.26	%		1,377,780			35,840	5.25	%

Cash on hand		5,436							4,796
Allowance for loan losses		(16,339	)						(15,361	)
Premises and equipment		21,369							21,403
Other assets		85,121							90,995

Total assets	$	1,594,416						$	1,479,613

Liabilities
Savings, MMDA and interest bearing demand	$	825,713		$	7,646	1.87	%	$	725,729		$	6,182	1.72	%
Time deposits		276,666			4,548	3.31	%		276,315			4,767	3.48	%
Repurchase agreements & Other		8,673			21	0.49	%		11,805			45	0.77	%
Advances from Federal Home Loan Bank		25,566			519	4.09	%		35,022			728	4.19