DEFIANCE, Ohio, Nov. 01, 2022 (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 third quarter and nine months ended September 30, 2022.

Third quarter 2022 highlights:

Net income of $3.3 million; diluted earnings per share ("EPS") of $0.47 or a 19.0 percent decrease compared to the prior year third quarter as increased Net Interest Income was offset by Noninterest Income headwinds
Noninterest expense of $10.4 million declined 3.9 percent from the linked quarter
Loan growth of $29.6 million from the linked quarter, or 13.2 percent annualized
Deposit growth of $14.1 million from the linked quarter, or 5.3 percent annualized
Margin expansion of 8.7 percent from the linked quarter
Strong asset quality with Nonperforming assets at 40 basis points and net recoveries in the quarter

Nine months ended September 30, 2022, highlights over prior-year nine months include:

Net income of $9.0 million and diluted EPS of $1.27, compared to $14.9 million, or $2.08 per share or a 38.9 percent decrease

Third quarter 2022 trailing twelve-month highlights include:

Loans excluding Paycheck Protection Program ("PPP") loans, increased $81.5 million, or 9.6 percent from the prior year
Deposits decreased by $25.8 million, or 2.3 percent to $1.09 billion
Mortgage origination volume of $388.0 million; servicing portfolio of $1.36 billion up 1.6 percent


Highlights	Three Months Ended								Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2022			Sep. 2021			% Change		Sep. 2022			Sep. 2021			% Change
Operating revenue	$	14,473		$	16,673		-13.2	%	$	43,017		$	52,914		-18.7	%
Interest income		11,764			11,033		6.6	%		31,632			31,901		-0.8	%
Interest expense		1,334			1,009		32.2	%		3,133			3,095		1.2	%
Net interest income		10,430			10,024		4.1	%		28,499			28,806		-1.1	%
Provision for loan losses		-			300		0.0	%		-			1,050		-100.0	%
Noninterest income		4,043			6,649		-39.2	%		14,518			24,108		-39.8	%
Noninterest expense		10,384			11,256		-7.7	%		32,046			33,241		-3.6	%
Net income		3,342			4,103		-18.5	%		8,988			14,945		-39.9	%
Earnings per diluted share		0.47			0.58		-19.0	%		1.27			2.08		-38.9	%
Return on average assets		1.03	%		1.23	%	-16.3	%		0.91	%		1.51	%	-39.7	%
Return on average equity		10.89	%		11.35	%	-4.1	%		9.21	%		13.84	%	-33.5	%

Non-GAAP Measures
Adjusted net income	$	3,291		$	3,565		-7.7	%	$	8,046		$	12,690		-36.6	%
Adjusted diluted EPS		0.47			0.56		-16.1	%		1.13			1.77		-36.2	%
Adjusted return on average assets		1.01	%		1.17	%	-13.7	%		0.84	%		1.34	%	-37.3	%
Adjusted pre-tax, pre-provision income		4,023			4,869		-17.4	%		9,778			15,769		-38.0	%

"In the third quarter of 2022 we achieved another strong loan origination performance as loans grew $30 million, or 3.3 percent from the second quarter of 2022, or 13.2 percent annualized" said Mark A. Klein, Chairman, President, and CEO of SB Financial. "Compared to prior year, net of PPP, organic loan growth was up $81.5 million or 9.6 percent. Strong loan growth and the increase in loan yields led to net interest margin expansion which partially offset the decline in mortgage revenue. Deposit balances stabilized during the quarter, however as short-term rates continue to rapidly increase our funding costs are beginning to rise."

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, up 1.5% from the linked quarter and down 13.2 percent from the third quarter of 2021. Operating revenue was negatively impacted by the expected decline in mortgage banking revenue.

Net interest income was up 8.7 percent from the linked quarter and up 4.1 percent from the year ago quarter.
Net interest margin on a fully taxable equivalent basis (FTE) was up from both the linked and year-ago quarters by 30 and 25 basis points, respectively, primarily from the increase in loan balances of $29.6 million from the linked quarter. Net of PPP, net interest margin is higher by 55 basis points compared to the prior year.
Noninterest income was down 13 and 39 percent from the linked and year ago quarters, respectively, due to lower mortgage volume and OMSR recapture.

Mortgage Loan Business

Mortgage loan originations for the third quarter of 2022 were $68.6 million, down $84.1 million, or 55.1 percent, from the year-ago quarter; likewise, total sales of originated loans were $39.2 million, down $83.9 million, or 68.2 percent. For the first nine months of 2022, SB Financial had total volume of $261.4 million, of which $202.5 million (77.5 percent) was new purchase/construction lending, $39.0 million was external refinance (14.9 percent), and the remaining $19.9 million (7.6 percent) was internal refinance.

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.4 million for the third quarter of 2022, compared to $4.1 million for the year-ago quarter. The mortgage servicing valuation adjustment for the third quarter of 2022 was a positive $0.1 million, compared to a positive adjustment of $0.2 million for the third quarter of 2021. For the first nine months of 2022, the recapture of servicing rights was $1.2 million compared to a recapture of $2.9 million for the prior year nine months. The aggregate servicing valuation impairment ended the quarter at $0.3 million. The servicing portfolio at September 30, 2022, was $1.36 billion, up $0.02 billion, or 1.6 percent, from $1.34 billion at September 30, 2021.

Mr. Klein noted, "Refinance activity declined to just 10.9 percent of mortgage originations in the quarter from 52.0 percent in the prior year as higher rates continue to significantly impact our Residential mortgage business line. We continue to believe that this business segment offers us the opportunity to drive new households as a number of our competitors have begun to abandon the residential market."


Mortgage Banking
($ in thousands)	Sep. 2022			Jun. 2022			Mar. 2022			Dec. 2021			Sep. 2021			Annual Growth
Mortgage originations	$	68,557		$	95,454		$	97,394		$	126,611		$	152,623		$	(84,066	)
Mortgage sales		39,176			49,915			72,154			110,543			123,083			(83,907	)
Mortgage servicing portfolio		1,362,666			1,369,732			1,375,554			1,362,962			1,341,439			21,227
Mortgage servicing rights		13,473			13,408			13,135			12,034			11,194			2,279


Mortgage servicing revenue
Loan servicing fees		858			863			861			850			850			8
OMSR amortization		(396	)		(496	)		(547	)		(807	)		(943	)		547
Net administrative fees		462			367			314			43			(93	)		555
OMSR valuation adjustment		65			239			890			581			248			(183	)
Net loan servicing fees		527			606			1,204			624			155			372
Gain on sale of mortgages		876			1,196			1,676			3,194			3,947			(3,071	)
Mortgage banking revenue, net	$	1,403		$	1,802		$	2,880		$	3,818		$	4,102		$	(2,699	)

Noninterest Income and Noninterest Expense

SB Financial's noninterest income for the quarter was down from the prior year and the linked quarter by 39 and 13 percent, respectively. Gain on sale yields on mortgage loans were down nearly 100 basis points from the prior year and the total dollars of sales were down nearly $84 million. Wealth management revenue was down slightly from the prior year as market declines have had an adverse effect on the market value of assets under management. SB Financial's title agency, Peak Title, was down just 6 percent from the prior year, as commercial transaction volume increased despite the residential mortgage slowdown.

For the third quarter of 2022, noninterest expense of $10.4 million was down $0.9 million or 7.7 percent compared to the prior year.

Reduced expenses due to lower mortgage volume, has offset higher equipment expense related to technology improvements.

Mr. Klein stated, "We executed on a number of FTE reductions in our residential mortgage business line in the third quarter as we thoughtfully right sized resources to combat lower volume. We continue to believe that fee income across all of our other business lines remains strong and has reduced our reliance on mortgage sale gains."


Noninterest Income / Noninterest Expense
($ in thousands, except ratios)	Sep. 2022			Jun. 2022			Mar. 2022			Dec. 2021			Sep. 2021			Annual Growth
Noninterest Income (NII)	$	4,043		$	4,673		$	5,802		$	6,589		$	6,649		$	(2,606)
NII / Total Revenue		27.9	%		32.8	%		40.6	%		42.1	%		39.9	%		-12.0%
NII / Average Assets		1.2	%		1.4	%		1.7	%		2.0	%		2.0	%		-0.8%
Total Revenue Growth		-13.2	%		-9.1	%		-46.9	%		-13.7	%		-15.3	%		2.1%

Noninterest Expense (NIE)	$	10,384		$	10,802		$	10,859		$	11,567		$	11,256		$	(872)
Efficiency Ratio		71.6	%		75.6	%		75.9	%		73.7	%		67.4	%		4.2%
NIE / Average Assets		3.2	%		3.3	%		3.2	%		3.5	%		3.4	%		-0.2%
Net Noninterest Expense/Avg. Assets		-2.0	%		-1.9	%		-1.5	%		-1.5	%		-1.4	%		-0.6%
Total Expense Growth		-7.7	%		-2.5	%		-0.5	%		8.3	%		-0.7	%		-7.0%

Balance Sheet

Total assets as of September 30, 2022, were $1.3 billion, or down 2.0 percent from the year ago quarter primarily due to the decrease in the investment portfolio. Total shareholders' equity as of September 30, 2022, was $114.6 million, down 20.6 percent from a year ago due to the valuation adjustment on the Company's bond portfolio, which has increased $32.7 million. Absent that negative impact, equity increased $3.1 million or 2.1 percent. SB Financial bought back 77,326 shares of our stock in the quarter at an average price of $17.27 or 132.1 percent of tangible book value per share.

The investment portfolio of $248.5 million, including shares in the Federal Reserve Bank and Federal Home Loan Bank, represented 19.1 percent of assets at September 30, 2022, and was down 2.2 percent from the year-ago period. Compared to the linked quarter, the investment portfolio was down $23.0 million as the amortization cash flow was used to fund higher margin loan growth.

Total loans held for investment were $925.2 million at September 30, 2022, up $78.7 million, or 9.3 percent, from September 30, 2021. Excluding PPP activity from both years, loan balances were up $81.5 million, or 9.6 percent.

Deposit balances of $1.09 billion at September 30, 2022, decreased by $0.03 billion, or 2.3 percent, since September 30, 2021. Deposits grew $14.1 million from the linked quarter.

Mr. Klein continued, "The loan growth from closing deals from our strong pipelines improved the mix of our balance sheet as we also reduced the investment portfolio and funded additional growth with higher cost deposits. Our ability to grow interest bearing liabilities in the quarter was a positive while increasing those rates by just 19 bps from the linked quarter. We continue to see solid asset quality and are on pace to achieve zero net charge-offs for the full year of 2022."


Loan Balances
($ in thousands, except ratios)	Sep. 2022			Jun. 2022			Mar. 2022			Dec. 2021			Sep. 2021			Annual Growth
Commercial	$	128,565		$	127,711		$	124,857		$	122,373		$	138,085		$	(9,520	)
% of Total		13.9	%		14.3	%		14.7	%		14.9	%		16.3	%		-6.9	%
Commercial RE		404,710			404,260			400,101			381,387			387,858			16,852
% of Total		43.7	%		45.1	%		47.0	%		46.4	%		45.8	%		4.3	%
Agriculture		60,522			60,586			55,741			57,473			57,374			3,148
% of Total		6.5	%		6.8	%		6.6	%		7.0	%		6.8	%		5.5	%
Residential RE		267,135			241,614			214,015			206,324			207,571			59,564
% of Total		28.9	%		27.0	%		25.2	%		25.1	%		24.5	%		28.7	%
Consumer & Other		64,317			61,440			55,957			55,157			55,660			8,657
% of Total		7.0	%		6.9	%		6.6	%		6.7	%		6.6	%		15.6	%
Total Loans	$	925,249		$	895,611		$	850,671		$	822,714		$	846,548		$	78,701
Total Growth Percentage																	9.3	%


Deposit Balances
($ in thousands, except ratios)	Sep. 2022			Jun. 2022			Mar. 2022			Dec. 2021			Sep. 2021			Annual Growth
Non-Int DDA	$	250,791		$	239,676		$	252,273		$	247,044		$	258,857		$	(8,066	)
% of Total		23.1	%		22.4	%		22.2	%		22.2	%		23.3	%		-3.1	%
Interest DDA		199,523			198,286			211,152			195,464			189,130			10,393
% of Total		18.4	%		18.5	%		18.6	%		17.6	%		17.0	%		5.5	%
Savings		201,402			215,285			236,394			237,571			246,414			(45,012	)
% of Total		18.5	%		20.1	%		20.8	%		21.3	%		22.2	%		-18.3	%
Money Market		258,975			276,274			289,699			276,462			258,741			234
% of Total		23.8	%		25.8	%		25.5	%		24.8	%		23.3	%		0.1	%
Time Deposits		175,202			142,258			148,553			156,504			158,518			16,684
% of Total		16.1	%		13.3	%		13.1	%		14.1	%		14.3	%		10.5	%
Total Deposits	$	1,085,893		$	1,071,779		$	1,138,071		$	1,113,045		$	1,111,660		$	(25,767	)
Total Growth Percentage																	-2.3	%

Asset Quality

SB Financial reported nonperforming assets of $5.2 million as of September 30, 2022, down $0.4 million or 7.6 percent from the year-ago quarter. The Company had net recoveries in the quarter, and for the year-to-date, the Company had $19,000 in net recoveries. The coverage ratio of problem loans to the loan loss allowance was at 313.3 percent at September 30, 2022.


Nonperforming Assets
($ in thousands, except ratios)	Sep. 2022			Jun. 2022			Mar. 2022			Dec. 2021			Sep. 2021			Annual Change
Commercial & Agriculture	$	114		$	140		$	142		$	143		$	144		$	(30	)
% of Total Com./Ag. loans		0.06	%		0.07	%		0.08	%		0.08	%		0.07	%		-20.8	%
Commercial RE		223			359			544			554			566			(343	)
% of Total CRE loans		0.06	%		0.09	%		0.14	%		0.15	%		0.15	%		-60.6	%
Residential RE		3,129			3,176			3,198			2,484			2,056			1,073
% of Total Res. RE loans		1.17	%		1.31	%		1.49	%		1.20	%		0.99	%		52.2	%
Consumer & Other		280			323			409			471			422			(142	)
% of Total Con./Oth. loans		0.44	%		0.53	%		0.73	%		0.85	%		0.76	%		-33.6	%
Total Nonaccruing Loans		3,746			3,998			4,293			3,652			3,188			558
% of Total loans		0.40	%		0.45	%		0.50	%		0.44	%		0.38	%		17.5	%
Accruing Restructured Loans		668			683			762			725			805			(137	)
Total Change (%)																	-17.0	%
Total Nonaccruing & Restructured Loans		4,414			4,681			5,055			4,377			3,993			421
% of Total loans		0.48	%		0.52	%		0.59	%		0.53	%		0.47	%		10.5	%
Foreclosed Assets and Other Assets		756			730			527			2,104			1,601			(845	)
Total Change (%)																	-52.8	%
Total Nonperforming Assets	$	5,170		$	5,411		$	5,582		$	6,481		$	5,594		$	(424	)
% of Total assets		0.40	%		0.42	%		0.42	%		0.49	%		0.42	%		-7.6	%

Webcast and Conference Call

The Company will hold the third quarter 2022 earnings conference call and webcast on November 2, 2022, 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 23 offices; 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 24 full-service ATMs. State Bank has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State region. SB Financial's common stock is listed on the NASDAQ Capital Market with the ticker symbol "SBFG".

In April 2022, SB Financial was named to the Keefe, Bruyette & Woods, Inc. "Bank Honor Roll" of superior performers that consistently reported increases in earnings per share over the last decade. The honor roll review determined that just 17 banks in the U.S., including SB Financial, or five percent of all banks screened, qualified for inclusion.

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, the duration and scope of the COVID-19 outbreak in the United States and the market areas in which SB Financial and its subsidiaries operate, including the impact to the state and local economies of prolonged shelter in place orders and the pandemic generally, 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 non-GAAP items of OMSR impairment and merger related costs from net income to report an 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)

	September			June			March			December			September
($ in thousands)		2022			2022			2022			2021			2021

ASSETS
Cash and due from banks	$	27,934		$	29,567		$	130,003		$	149,511		$	138,015
Interest bearing time deposits		2,134			1,691			1,894			2,643			2,651
Available-for-sale securities		243,233			266,162			265,311			263,259			248,815
Loans held for sale		2,979			4,242			4,737			7,472			10,335
Loans, net of unearned income		925,249			895,611			850,671			822,714			846,548
Allowance for loan losses		(13,824	)		(13,801	)		(13,804	)		(13,805	)		(13,812	)
Premises and equipment, net		22,842			23,122			23,039			23,212			23,874
Federal Reserve and FHLB Stock, at cost		5,230			5,303			5,303			5,303			5,303
Foreclosed assets and other assets		756			730			527			2,104			1,601
Interest receivable		3,556			3,256			2,815			2,920			2,954
Goodwill		23,239			23,239			23,239			23,191			22,091
Cash value of life insurance		28,713			28,556			17,932			17,867			17,795
Mortgage servicing rights		13,473			13,408			13,135			12,034			11,194
Other assets		17,863			12,886			10,328			12,430			12,361

Total assets	$	1,303,377		$	1,293,972		$	1,335,130		$	1,330,855		$	1,329,725



LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing demand	$	250,791		$	239,676		$	252,273		$	247,044		$	258,857
Interest bearing demand		199,523			198,286			211,152			195,464			189,130
Savings		201,402			215,285			236,394			237,571			246,414
Money market		258,975			276,274			289,699			276,462			258,741
Time deposits		175,202			142,258			148,553			156,504			158,518

Total deposits		1,085,893			1,071,779			1,138,071			1,113,045			1,111,660

Short-term borrowings		19,754			30,772			19,035			15,320			20,771
Federal Home Loan Bank advances		35,000			25,000			5,500			5,500			5,500
Trust preferred securities		10,310			10,310			10,310			10,310			10,310
Subordinated debt net of issuance costs		19,582			19,570			19,558			19,546			19,534
Interest payable		623			307			536			299			576
Other liabilities		17,587			11,678			9,483			21,906			17,082

Total liabilities		1,188,749			1,169,416			1,202,493			1,185,926			1,185,433

Shareholders' Equity
Common stock		61,319			61,319			61,319			54,463			54,463
Additional paid-in capital		15,000			15,069			14,872			14,944			14,875
Retained earnings		99,309			96,809			94,833			99,716			97,183
Accumulated other comprehensive income (loss)		(33,426	)		(22,210	)		(13,659	)		(1,845	)		(699	)
Treasury stock		(27,574	)		(26,431	)		(24,728	)		(22,349	)		(21,530	)

Total shareholders' equity		114,628			124,556			132,637			144,929			144,292

Total liabilities and shareholders' equity	$	1,303,377		$	1,293,972		$	1,335,130		$	1,330,855		$	1,329,725

SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except per share & ratios)			At and for the Three Months Ended											Nine Months Ended

			September			June		March		December		September		September		September
Interest income				2022			2022		2022		2021		2021		2022		2021
	Loans
	Taxable		$	10,084		$	8,880	$	8,052	$	8,889	$	9,948	$	27,016	$	29,070
	Tax exempt			92			73		61		59		52		226		147
	Securities
	Taxable			1,536			1,469		1,235		969		939		4,239		2,417
	Tax exempt			52			52		47		86		94		151		267

		Total interest income		11,764			10,474		9,395		10,003		11,033		31,632		31,901

Interest expense
	Deposits			852			567		618		640		709		2,037		2,489
	Repurchase agreements & other			8			11		13		7		12		32		35
	Federal Home Loan Bank advances			180			38		39		41		40		257		147
	Trust preferred securities			99			71		53		49		49		223		150
	Subordinated debt			195			194		195		188		199		584		274

		Total interest expense		1,334			881		918		925		1,009		3,133		3,095


Net interest income				10,430			9,593		8,477		9,078		10,024		28,499		28,806

	Provision for loan losses			-			-		-		-		300		-		1,050

Net interest income after provision
for loan losses				10,430			9,593		8,477		9,078		9,724		28,499		27,756

Noninterest income
	Wealth management fees			930			936		955		988		959		2,821		2,826
	Customer service fees			844			860		794		827		812		2,498		2,390
	Gain on sale of mtg. loans & OMSR			876			1,196		1,676		3,194		3,947		3,748		14,061
	Mortgage loan servicing fees, net			527			606		1,204		624		155		2,337		2,316
	Gain on sale of non-mortgage loans			125			167		169		44		52		461		114
	Title insurance revenue			476			697		602		528		508		1,775		1,561
	Gain (loss) on sale of assets			(12	)		-		55		1		1		43		1
	Other			277			211		347		383		215		835		839

		Total noninterest income		4,043			4,673		5,802		6,589		6,649		14,518		24,108

Noninterest expense
	Salaries and employee benefits			5,858			6,418		6,189		6,648		6,689		18,465		20,190
	Net occupancy expense			769			719		742		846		714		2,230		2,202
	Equipment expense			918			827		854		899		872		2,599		2,382
	Data processing fees			664			643		576		721		671		1,883		1,858
	Professional fees			766			760		950		872		817		2,476		2,155
	Marketing expense			200			222		231		228		201		653		556
	Telephone and communication expense			134			105		111		148		140		350		433
	Postage and delivery expense			75			110		116		106		100		301		308
	State, local and other taxes			250			277		278		288		286		805		887
	Employee expense			145			175		136		163		186		456		500
	Other expenses			605			546		676		648		580		1,828		1,770

		Total noninterest expense		10,384			10,802		10,859		11,567		11,256		32,046		33,241


Income before income tax expense				4,088			3,464		3,420		4,100		5,117		10,971		18,623

	Income tax expense			746			630		607		768		1,014		1,983		3,678

Net income			$	3,342		$	2,834	$	2,813	$	3,332	$	4,103	$	8,988	$	14,945

Common share data:
	Basic earnings per common share		$	0.48		$	0.40	$	0.40	$	0.49	$	0.59	$	1.28	$	2.09

	Diluted earnings per common share		$	0.47		$	0.40	$	0.40	$	0.49	$	0.58	$	1.27	$	2.08

Average shares outstanding (in thousands):
	Basic:			6,968			7,075		7,035		6,906		6,966		7,026		7,142
	Diluted:			7,033			7,149		7,100		6,970		7,017		7,098		7,167

SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share & ratios)	At and for the Three Months Ended															Nine Months Ended

	September			June			March			December			September			September			September
SUMMARY OF OPERATIONS		2022			2022			2022			2021			2021			2022			2021

Net interest income	$	10,430		$	9,593		$	8,477		$	9,078		$	10,024		$	28,499		$	28,806
Tax-equivalent adjustment		38			33			29			39			39			100			110
Tax-equivalent net interest income		10,468			9,626			8,506			9,117			10,063			28,599			28,916
Provision for loan loss		-			-			-			-			300			-			1,050
Noninterest income		4,043			4,673			5,802			6,589			6,649			14,518			24,108
Total operating revenue		14,473			14,266			14,279			15,667			16,673			43,017			52,914
Noninterest expense		10,384			10,802			10,859			11,567			11,256			32,045			33,241
Pre-tax pre-provision income		4,089			3,464			3,420			4,100			5,417			10,972			19,673
Pretax income		4,089			3,464			3,420			4,100			5,117			10,972			18,623
Net income		3,342			2,834			2,813			3,332			4,103			8,988			14,945

PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.48			0.40			0.40			0.49			0.59			1.28			2.09
Diluted earnings per share		0.47			0.40			0.40			0.49			0.58			1.27			2.08
Common dividends		0.120			0.120			0.115			0.115			0.110			0.355			0.325
Book value per common share		16.49			17.75			18.65			21.05			20.83			16.49			20.83
Tangible book value per common share (TBV)		13.07			14.36			15.31			17.60			17.55			13.07			17.55
Market price per common share		16.85			17.26			19.91			19.67			18.18			16.85			18.18
Market price to TBV		128.9	%		120.2	%		130.1	%		111.8	%		103.6	%		128.9	%		103.6	%
Market price to trailing 12 month EPS		9.6			9.3			10.0			7.7			6.5			9.6			6.5

PERFORMANCE RATIOS:
Return on average assets (ROAA)		1.03	%		0.87	%		0.83	%		0.99	%		1.23	%		0.91	%		1.51	%
Pre-tax pre-provision ROAA		1.26	%		1.06	%		1.01	%		1.22	%		1.63	%		1.19	%		2.12	%
Return on average equity		10.89	%		8.89	%		8.08	%		9.21	%		11.35	%		9.21	%		13.84	%
Return on average tangible equity		13.51	%		10.93	%		9.75	%		10.92	%		13.47	%		11.28	%		16.43	%
Efficiency ratio		71.63	%		75.60	%		75.93	%		73.72	%		67.40	%		74.38	%		62.72	%
Earning asset yield		3.89	%		3.45	%		2.96	%		3.17	%		3.25	%		3.42	%		3.44	%
Cost of interest bearing liabilities		0.58	%		0.39	%		0.39	%		0.40	%		0.44	%		0.45	%		0.46	%
Net interest margin		3.45	%		3.15	%		2.67	%		2.87	%		3.20	%		3.08	%		3.11	%
Tax equivalent effect		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Net interest margin, tax equivalent		3.46	%		3.16	%		2.68	%		2.89	%		3.21	%		3.09	%		3.12	%
Non interest income/Average assets		1.24	%		1.43	%		1.72	%		1.96	%		1.99	%		1.47	%		2.44	%
Non interest expense/Average assets		3.19	%		3.31	%		3.22	%		3.45	%		3.38	%		3.24	%		3.37	%
Net noninterest expense/Average assets		-1.95	%		-1.88	%		-1.50	%		-1.48	%		-1.38	%		-1.77	%		-0.93	%

ASSET QUALITY RATIOS:
Gross charge-offs		9			9			9			34			24			27			102
Recoveries		32			6			8			27			230			46			290
Net charge-offs		(23	)		3			1			7			(206	)		(19	)		(188	)
Nonaccruing loans/Total loans		0.40	%		0.45	%		0.50	%		0.44	%		0.38	%		0.40	%		0.38	%
Nonperforming loans/Total loans		0.48	%		0.52	%		0.59	%		0.53	%		0.47	%		0.48	%		0.47	%
Nonperforming assets/Loans & OREO		0.56	%		0.60	%		0.66	%		0.79	%		0.66	%		0.56	%		0.66	%
Nonperforming assets/Total assets		0.40	%		0.42	%		0.42	%		0.49	%		0.42	%		0.40	%		0.42	%
Allowance for loan loss/Nonperforming loans		313.26	%		294.83	%		273.08	%		315.40	%		345.91	%		313.26	%		345.91	%
Allowance for loan loss/Total loans		1.49	%		1.54	%		1.62	%		1.68	%		1.63	%		1.49	%		1.63	%
Net loan charge-offs/Average loans (ann.)		(0.01	%)		0.00	%		0.00	%		0.00	%		(0.10	%)		(0.00	%)		(0.03	%)

CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		85.21	%		83.56	%		74.75	%		73.92	%		76.15	%		85.21	%		76.15	%
Equity/ Assets		8.79	%		9.63	%		9.93	%		10.89	%		10.85	%		8.79	%		10.85	%
Tangible equity/Tangible assets		7.10	%		7.93	%		8.30	%		9.27	%		9.30	%		7.10	%		9.30	%
Common equity tier 1 ratio (Bank)		13.23	%		13.21	%		13.71	%		13.94	%		13.23	%		13.21	%		13.23	%

END OF PERIOD BALANCES
Total assets		1,303,377			1,293,972			1,335,130			1,330,855			1,329,725			1,303,377			1,329,725
Total loans		925,249			895,611			850,671			822,714			846,548			925,249			846,548
Deposits		1,085,893			1,071,779			1,138,071			1,113,045			1,111,660			1,085,893			1,111,660
Stockholders equity		114,628			124,556			132,637			144,929			144,292			114,628			144,292
Goodwill and intangibles		23,770			23,787			23,804			23,774			22,692			23,770			22,692
Tangible equity		90,858			100,769			108,833			121,155			121,600			90,858			121,600
Mortgage servicing portfolio		1,362,666			1,369,732			1,375,554			1,362,962			1,341,439			1,362,666			1,341,439
Wealth/Brokerage assets under care		480,947			500,487			560,698			618,279			588,319			480,947			588,319
Total assets under care		3,146,990			3,164,191			3,271,382			3,312,096			3,259,483			3,146,990			3,259,483
Full-time equivalent employees		271			267			256			269			264			271			264
Period end common shares outstanding		6,950			7,017			7,111			6,884			6,927			6,950			6,927
Market capitalization (all)		117,113			121,105			141,575			135,415			125,935			117,113			125,935

AVERAGE BALANCES
Total assets		1,302,297			1,305,815			1,350,982			1,342,202			1,333,369			1,319,668			1,315,521
Total earning assets		1,209,958			1,216,124			1,270,218			1,263,431			1,253,722			1,231,865			1,236,227
Total loans		909,909			870,439			832,825			845,078			856,486			871,340			857,703
Deposits		1,085,821			1,108,890			1,134,234			1,123,843			1,109,491			1,109,345			1,099,892
Stockholders equity		122,738			127,519			139,214			144,749			144,565			130,069			144,020
Goodwill and intangibles		23,778			23,796			23,801			22,701			22,701			23,791			22,718
Tangible equity		98,960			103,723			115,413			122,048			121,864			106,278			121,302
Average basic shares outstanding		6,968			7,075			7,035			6,906			6,966			7,026			7,142
Average diluted shares outstanding		7,033			7,149			7,100			6,970			7,017			7,098			7,167

SB FINANCIAL GROUP, INC.
	Rate Volume Analysis - (Unaudited)
	For the Three and Nine Months Ended Sep. 30, 2022 and 2021

	($ in thousands)	Three Months Ended Sep. 30, 2022							Three Months Ended Sep. 30, 2021
		Average					Average		Average					Average
Assets		Balance			Interest		Rate		Balance			Interest		Rate

	Taxable securities/cash	$	291,712		$	1,536	2.11	%	$	388,800		$	939	0.97	%
	Nontaxable securities		8,337			52	2.49	%		8,436			94	4.46	%
	Loans, net		909,909			10,176	4.47	%		856,486			10,000	4.67	%

	Total earning assets		1,209,958			11,764	3.89	%		1,253,722			11,033	3.52	%

	Cash and due from banks		6,782							6,975
	Allowance for loan losses		(13,802	)						(13,475	)
	Premises and equipment		23,762							25,820
	Other assets		75,597							60,327

	Total assets	$	1,302,297						$	1,333,369

Liabilities
	Savings, MMDA and interest bearing demand	$	681,209		$	542	0.32	%	$	695,801		$	441	0.25	%
	Time deposits		155,979			310	0.79	%		164,432			268	0.65	%
	Repurchase agreements & other		20,160			8	0.16	%		24,672			12	0.19	%
	Advances from Federal Home Loan Bank		26,739			180	2.69	%		5,500			40	2.91	%
	Trust preferred securities		10,310			99	3.84	%		10,310			49	1.90	%
	Subordinated debt		19,576			195	3.98	%		19,528			199	4.08	%

	Total interest bearing liabilities		913,973			1,334	0.58	%		920,243			1,009	0.44	%

	Non interest bearing demand		248,633			-				249,258			-

	Total funding		1,162,606				0.46	%		1,169,501				0.35	%

	Other liabilities		16,952							19,303

	Total liabilities		1,179,558							1,188,804

	Equity		122,738							144,565

	Total liabilities and equity	$	1,302,296						$	1,333,369

	Net interest income				$	10,430						$	10,024

	Net interest income as a percent of average interest-earning assets - GAAP measure						3.45	%						3.20	%

	Net interest income as a percent of average interest-earning assets - non GAAP						3.46	%						3.21	%
	- Computed on a fully tax equivalent (FTE) basis

		Nine Months Ended Sep. 30, 2022							Nine Months Ended Sep. 30, 2021
		Average					Average		Average					Average
Assets		Balance			Interest		Rate		Balance			Interest		Rate

	Taxable securities/cash	$	352,405		$	4,239	1.60	%	$	370,743		$	2,417	0.87	%
	Nontaxable securities		8,120			151	2.48	%		7,781			267	4.58	%
	Loans, net		871,340			27,242	4.17	%		857,703			29,217	4.54	%

	Total earning assets		1,231,865			31,632	3.42	%		1,236,227			31,901	3.44	%

	Cash and due from banks		7,331							7,554
	Allowance for loan losses		(13,804	)						(13,297	)
	Premises and equipment		24,265							24,442
	Other assets		70,011							60,595

	Total assets	$	1,319,668						$	1,315,521

Liabilities
	Savings, MMDA and interest bearing demand	$	709,033		$	1,293	0.24	%	$	661,433		$	1,413	0.28	%
	Time deposits		152,230			744	0.65	%		184,668			1,076	0.78	%
	Repurchase agreements & Other		21,298			32	0.20	%		24,139			35	0.19	%
	Advances from Federal Home Loan Bank		12,154			257	2.82	%		6,846			147	2.86	%
	Trust preferred securities		10,310			223	2.88	%		10,310			150	1.94	%
	Subordinated debt		19,564			584	3.98	%		9,811			274	3.72	%

	Total interest bearing liabilities		924,589			3,133	0.45	%		897,207			3,095	0.46	%

	Non interest bearing demand		248,082				0.36	%		253,791				0.36	%

	Total funding		1,172,671							1,150,998

	Other liabilities		16,928							20,503

	Total liabilities		1,189,599							1,171,501

	Equity		130,069							144,020

	Total liabilities and equity	$	1,319,668						$	1,315,521

	Net interest income				$	28,499						$	28,806

	Net interest income as a percent of average interest-earning assets - GAAP measure						3.08	%						3.11	%

	Net interest income as a percent of average interest-earning assets - non GAAP						3.09	%						3.12	%
	- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended						Nine Months Ended

($ in thousands, except per share & ratios)	Sep. 30, 2022			Sep. 30, 2021			Sep. 30, 2022			Sep. 30, 2021

Total Operating Revenue	$	14,473		$	16,673		$	43,017		$	52,914
Adjustment to (deduct)/add OMSR recapture/impairment*		(65	)		(248	)		(1,193	)		(2,854	)

Adjusted Total Operating Revenue		14,408			16,425			41,824			50,060


Income before Income Taxes		4,088			5,117			10,971			18,623
Adjustment for OMSR		(65	)		(248	)		(1,193	)		(2,854	)

Adjusted Income before Income Taxes		4,023			4,869			9,778			15,769


Provision for Income Taxes		746			1,014			1,983			3,678
Adjustment for OMSR **		(14	)		(52	)		(251	)		(599	)

Adjusted Provision for Income Taxes		732			962			1,732			3,080


Net Income		3,342			3,761			8,988			14,945
Adjustment for OMSR		(51	)		(196	)		(942	)		(2,255	)

Adjusted Net Income		3,291			3,565			8,046			12,690


Diluted Earnings per Share		0.47			0.58			1.27			2.08
Adjustment for OMSR		(0.01	)		(0.03	)		(0.13	)		(0.31	)

Adjusted Diluted Earnings per Share	$	0.47		$	0.55		$	1.13		$	1.77


Return on Average Assets		1.03	%		1.23	%		0.91	%		1.51	%
Adjustment for OMSR		-0.02	%		-0.06	%		-0.07	%		-0.17	%

Adjusted Return on Average Assets		1.01	%		1.17	%		0.84	%		1.34	%

*valuation adjustment to the Company's mortgage servicing rights

**tax effect is calculated using a 21% statutory federal corporate income tax rate

SB Financial Group Announces Third Quarter 2022 Results