DEFIANCE, Ohio, Oct. 24, 2024 (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 ended September 30, 2024.

Third Quarter 2024 Highlights compared to the third quarter of the prior year:

Net income of $2.4 million, down 12.4 percent with Diluted Earnings Per Share ("EPS") of $0.35. EPS is up 3.0% when adjusted for mortgage servicing rights impairment in both periods.
Net interest income totaled $10.2 million, a 6.8 percent increase from $9.5 million.
Total loans increased to $1.03 billion, up by $40.9 million or 4.1 percent.
Tangible book value per share ended the quarter at $16.49, up $3.40 per share or 26.0%.

Nine Months Ended September 30, 2024, highlights over prior-year nine months include:

Mortgage Banking Revenue increased to $4.7 million, up by 7.6 percent from $4.4 million.
Noninterest income increased 2.2% to $12.5 million, up from $12.2 million.
Noninterest expense increased 1.1% to $32.0 million, up from $31.6 million.

Trailing Twelve Months Ended September 30, 2024, highlights compared to the prior year:

Diluted EPS was $1.74 for the twelve months ended September 2024, reflecting a 3.6% increase from the prior twelve months of $1.68.
Total deposits reached $1.16 billion by the end of September 2024, marking a 6.8% growth from $1.09 billion at the same time in 2023.
Mortgage origination volume was $228.3 million for the trailing twelve months, while the servicing portfolio increased by 2.9% to $1.41 billion.

Earnings Highlights	Three Months Ended								Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2024			Sep. 2023			% Change		Sep. 2024			Sep. 2023			% Change
Operating revenue	$	14,309		$	13,699		4.5	%	$	41,485		$	41,879		-0.9	%
Interest income		16,548			14,796		11.8	%		47,502			43,026		10.4	%
Interest expense		6,362			5,260		21.0	%		18,477			13,337		38.5	%
Net interest income		10,186			9,536		6.8	%		29,025			29,689		-2.2	%
Provision (recovery) for credit losses		200			(6	)	3433.3	%		200			389		-48.6	%
Noninterest income		4,123			4,163		-1.0	%		12,460			12,190		2.2	%
Noninterest expense		11,003			10,481		5.0	%		31,956			31,593		1.1	%
Net income		2,354			2,687		-12.4	%		7,835			8,212		-4.6	%
Earnings per diluted share		0.35			0.39		-10.3	%		1.17			1.18		-0.8	%
Return on average assets		0.68	%		0.80	%	-15.0	%		0.77	%		0.81	%	-4.9	%
Return on average equity		7.32	%		8.73	%	-16.2	%		8.41	%		8.72	%	-3.6	%

"We delivered strong operational performance during the September quarter with our pretax preprovision earnings up over 14% when we adjust for the servicing rights impairment," stated Mark A. Klein, Chairman, President, and CEO. "We are on track with our Marblehead acquisition and are especially pleased that we have increased the tangible book value per share by 26% in the last year."

"Our Loan Book expanded to $1.03 billion, an increase of $40.9 million, underscoring our disciplined approach to portfolio expansion. Despite market pressures from interest rates, our deposits increased by $74.2 million or 6.8% year-over-year reaching $1.16 billion," added Mr. Klein.

RESULTS OF OPERATIONS

Consolidated Revenue

In the third quarter of 2024, core earnings and margins rose with operating revenue rising to $14.3 million, a 4.5% increase from the $13.7 million in the prior year. While net interest income rose to $10.2 million, a 6.8% increase year-over-year, the Company faced pressure from rising deposit costs, which drove a 21% increase in interest expenses. Despite this, net interest margin saw a slight expansion, increasing by 9 basis points compared to the same period last year, reaching 3.17%.

Noninterest income was down 1.0%, however, when adjusted for the servicing rights impairment and the gain on sale of assets, it was up nearly 4%. Mortgage gain on sale had its best quarter since the first quarter of 2022 and we saw solid increases in Title insurance revenue (up 13%) and Wealth management revenue (up 5%).

Mortgage Loan Business

In the third quarter of 2024, SB Financial Group recorded a 15.5% year-over-year increase in mortgage loan originations, reaching $70.7 million, up from $61.2 million in the corresponding period last year. This strong performance reflects our ability to capitalize on favorable market conditions and underscores the resilience of the housing sector, which continues to show signs of strength despite broader economic challenges. Mortgage sales followed this growth, reaching $61.3 million, or 86.6% of total originations. This represents a 13.3% year-over-year increase from $54.1 million, signaling our ongoing success in expanding our market reach and maintaining a competitive position. The sales volume highlights the robustness of our operations, even as competition intensifies in the residential lending space.

However, mortgage banking net revenue decreased to $1.35 million, down 17.9% from $1.65 million in the prior year. This decline was primarily driven by a negative Originated Mortgage Servicing Rights ("OMSR") valuation adjustment of $465 thousand this quarter, significantly impacting net loan servicing fees. This reflects broader market headwinds, including shifts in borrower behavior and refinancing rates, which put pressure on servicing valuations. Despite this, gains from the sale of mortgages and continued efficiency in our operations helped partially offset the decline. The mortgage servicing portfolio expanded by 2.9%, reaching $1.41 billion. This steady growth in our servicing portfolio is a testament to our commitment to building long-term, sustainable relationships.

Mr. Klein stated, "This quarter has showcased improved efficiency in our mortgage operations. Although our results slightly missed our internal targets, the shortfall primarily reflects the heightened competitiveness and shifting dynamics within the mortgage market. Despite these challenges, our proactive measures, including expanding our origination teams, including closing our first loan from the Cincinnati market, have positioned us to capitalize on market opportunities and maintain our momentum."

Mortgage Banking
($ in thousands)	Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Sep. 2023			Prior Year Growth
Mortgage originations	$	70,715		$	75,110		$	42,912		$	39,566		$	61,200		$	9,515
Mortgage sales		61,271			55,835			36,623			33,362			54,085			7,186
Mortgage servicing portfolio		1,406,273			1,389,805			1,371,713			1,366,667			1,367,209			39,064
Mortgage servicing rights		14,357			14,548			14,191			13,906			13,893			464


Revenue
Loan servicing fees		874			862			855			855			850			24
OMSR amortization		(370	)		(335	)		(273	)		(282	)		(334	)		(36	)
Net administrative fees		504			527			582			573			516			(12	)
OMSR valuation adjustment		(465	)		38			181			(12	)		(78	)		(387	)
Net loan servicing fees		39			565			763			561			438			(399	)
Gain on sale of mortgages		1,311			1,277			781			747			1,207			104
Mortgage banking revenue, net	$	1,350		$	1,842		$	1,544		$	1,308		$	1,645		$	(295	)

Noninterest Income and Noninterest Expense

For the third quarter of 2024, SB Financial Group's noninterest income slightly declined to $4.12 million, representing a 1.0% decrease compared to $4.16 million in the third quarter of 2023. This minor reduction was primarily driven by lower mortgage loan servicing fees, which fell from $438 thousand in the third quarter of 2023 to $39 thousand in the third quarter of 2024, reflecting significant pressure in the mortgage servicing market. Furthermore, other noninterest income also contributed to the decline. However, this was partially offset by an increase in wealth management fees, which rose by 5.4% to $882 thousand, and a gain on the sale of mortgage loans and OMSR, which increased to $1.31 million from $1.21 million in the prior-year quarter. The gain on the sale of assets further contributed positively with $200 thousand realized this quarter.

Noninterest expenses for the third quarter were reported at $11.0 million, reflecting a 5.0% increase compared to $10.5 million in the third quarter of 2023. This rise was primarily driven by the increase of additional talent, which rose by 10.3% to $6.06 million, along with a 17% increase in data processing fees to $758 thousand. While certain expense categories saw reductions, such as other expenses, which decreased to $804 thousand from $1.1 million in the prior year, these declines were not sufficient enough to offset the overall increase in operating expenses.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Sep. 2023			Prior Year Growth
Noninterest Income (NII)	$	4,123		$	4,386		$	3,951		$	5,531		$	4,163		$	(40	)
NII / Total Revenue		28.8	%		31.5	%		30.1	%		36.6	%		30.4	%		-1.6	%
NII / Average Assets		1.2	%		1.3	%		1.2	%		1.7	%		1.2	%		0.0	%
Total Revenue Growth		4.5	%		-0.6	%		-6.1	%		3.4	%		-5.3	%		-0.9	%

Noninterest Expense (NIE)	$	11,003		$	10,671		$	10,282		$	10,369		$	10,481		$	522
Efficiency Ratio		76.8	%		75.9	%		78.2	%		68.4	%		79.0	%		-2.2	%
NIE / Average Assets		3.2	%		3.2	%		3.1	%		3.1	%		3.1	%		0.1	%
Net Noninterest Expense/Avg. Assets		-2.0	%		-1.9	%		-1.9	%		-1.4	%		-1.9	%		-0.1	%
Total Expense Growth		5.0	%		3.2	%		-4.6	%		1.0	%		0.9	%		5.0	%

Mr. Klein commented on the financial performance, stating, "Our noninterest income continues to show resilience, supported by gains from mortgage-related activities and consistent wealth management performance. As expected, the competitive environment and market fluctuations impacted servicing fees. On the expense side, our focus remains on managing costs related to growth initiatives, and we are committed to optimizing our cost structure to maintain operational efficiency and deliver sustained value to our stakeholders."

Balance Sheet

As of September 30, 2024, SB Financial Group continued to demonstrate financial stability, with total assets increasing to $1.39 billion, a 5.1% increase from $1.33 billion at the end of the prior-year period. This growth underscores our ability to maintain a robust financial position amidst changing market conditions.

Our loan portfolio remained strong, standing at $1.03 billion, up by $40.9 million or 4.1% compared to the prior year. This growth highlights our effective lending practices and strong demand in the credit market. Additionally, cash and cash equivalents increased significantly to $49.3 million, up 159.1% from $19.0 million a year ago, enhancing our liquidity position and providing us with greater flexibility in navigating economic uncertainties.

Deposits increased to $1.16 billion, reflecting a 6.8% growth compared to the prior-year figure of $1.09 billion, driven by increases across all interest-bearing deposit categories. This growth reflects continued trust from our clients and a solid base to support ongoing operations.

Shareholders' equity expanded significantly to $132.8 million, a 5.9% increase from the linked quarter and an 18.2% year-over-year rise, underscoring our commitment to driving shareholder value. This improvement can be attributed to retained earnings growth and an improvement in accumulated comprehensive losses. The year-over-year growth in shareholders' equity reflects our focus on strengthening the balance sheet and optimizing capital allocation strategies.

Mr. Klein, commented, "In 2024, we have maintained a disciplined and proactive approach to our growth and capital management, aligning closely with our strategic objectives. Our ability to sustain and grow our loan portfolio, even in a highly competitive market, demonstrates the resilience of our business model and the effectiveness of our relationship-driven lending practices. Furthermore, the year-over-year increase in shareholders' equity highlights our continued commitment to delivering shareholder value. We remain poised to leverage future opportunities that will further fortify our financial position and ensure long-term prosperity for our stakeholders."

Loan Balances
($ in thousands, except ratios)	Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Sep. 2023			Annual Growth
Commercial	$	123,821		$	123,287		$	120,016		$	126,716		$	120,325		$	3,496
% of Total		12.0	%		12.3	%		12.1	%		12.7	%		12.2	%		2.9	%
Commercial RE		459,449			434,967			429,362			424,041			421,736			37,713
% of Total		44.6	%		43.3	%		43.3	%		42.4	%		42.6	%		8.9	%
Agriculture		64,887			64,329			62,365			65,659			60,928			3,959
% of Total		6.3	%		6.4	%		6.3	%		6.6	%		6.2	%		6.5	%
Residential RE		314,010			316,233			314,668			318,123			320,306			(6,296	)
% of Total		30.5	%		31.5	%		31.7	%		31.8	%		32.4	%		-2.0	%
Consumer & Other		67,788			66,574			65,141			65,673			65,726			2,062
% of Total		6.6	%		6.6	%		6.6	%		6.6	%		6.6	%		3.1	%
Total Loans	$	1,029,955		$	1,005,390		$	991,552		$	1,000,212		$	989,021		$	40,934
Total Growth Percentage																	4.1	%


Deposit Balances
($ in thousands, except ratios)	Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Sep. 2023			Annual Growth
Non-Int DDA	$	222,425		$	208,244		$	219,395		$	228,713		$	224,182		$	(1,757	)
% of Total		19.2	%		18.7	%		19.7	%		21.4	%		20.7	%		-0.8	%
Interest DDA		202,097			190,857			169,171			166,413			174,729			27,368
% of Total		17.4	%		17.1	%		15.2	%		15.5	%		16.1	%		15.7	%
Savings		241,761			231,855			244,157			216,965			226,077			15,684
% of Total		20.8	%		20.8	%		21.9	%		20.3	%		20.8	%		6.9	%
Money Market		228,182			225,650			221,362			202,605			216,565			11,617
% of Total		19.7	%		20.2	%		19.9	%		18.9	%		20.0	%		5.4	%
Time Deposits		265,068			258,582			258,257			255,509			243,766			21,302
% of Total		22.9	%		23.2	%		23.2	%		23.9	%		22.5	%		8.7	%
Total Deposits	$	1,159,533		$	1,115,188		$	1,112,342		$	1,070,205		$	1,085,319		$	74,214
Total Growth Percentage																	6.8	%

Asset Quality

SB Financial Group's commitment to maintaining exceptional asset quality remained strong through the third quarter of 2024. As of September 2024, nonperforming loans constituted 0.54% of total loans, an increase from 0.47% in the prior quarter. While the allowance for credit losses coverage stood at 276.8% of nonperforming loans—below the 330% reported in the linked quarter—it remains robust, signaling a conservative approach to risk management.

Additionally, the net loan charge-offs to average loans ratio was a modest 0.01%, further highlighting SB Financial Group's effective loan repayment management. Collectively, these metrics reinforce our reputation for disciplined risk oversight and credit administration.

Mr. Klein concluded, "Our third quarter performance underscores our continued commitment to maintaining high asset quality. Although we observed a slight increase in nonperforming loans and a decrease in our reserve coverage ratio, our allowance for credit losses remains robust. This, coupled with our disciplined approach to credit risk management, demonstrates our focus on preserving the long-term strength of our loan portfolio and ensuring stability amidst ongoing economic shifts."


Nonperforming Assets																Annual Change
($ in thousands, except ratios)	Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Sep. 2023			Annual Change
Commercial & Agriculture	$	2,899		$	2,781		$	897		$	748		$	717		$	2,182
% of Total Com./Ag. loans		1.54	%		1.48	%		0.49	%		0.39	%		0.40	%		304.3	%
Commercial RE		813			475			49			168			222			591
% of Total CRE loans		0.18	%		0.11	%		0.01	%		0.04	%		0.05	%		266.2	%
Residential RE		1,536			1,247			1,295			1,690			2,182			(646	)
% of Total Res. RE loans		0.49	%		0.39	%		0.41	%		0.53	%		0.68	%		-29.6	%
Consumer & Other		270			231			193			212			208			62
% of Total Con./Oth. loans		0.40	%		0.35	%		0.30	%		0.32	%		0.32	%		29.8	%
Total Nonaccruing Loans		5,518			4,734			2,434			2,818			3,329			2,189
% of Total loans		0.54	%		0.47	%		0.25	%		0.28	%		0.34	%		65.8	%
Foreclosed Assets and Other Assets		-			510			510			511			629			(629	)
Total Change (%)																	-100.0	%
Total Nonperforming Assets	$	5,518		$	5,244		$	2,944		$	3,329		$	3,958		$	1,560
% of Total assets		0.40	%		0.39	%		0.22	%		0.25	%		0.30	%		39.41	%

Webcast and Conference Call

The Company will hold the third quarter 2024 earnings conference call and webcast on October 25, 2024, 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 23 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 region. 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)

				September			June			March			December			September
			($ in thousands)		2024			2024			2024			2023			2023

ASSETS
	Cash and due from banks			$	49,348		$	21,983		$	26,602		$	22,965		$	19,049
	Interest bearing time deposits				1,706			2,417			2,417			1,535			1,180
	Available-for-sale securities				211,511			207,856			213,239			219,708			212,768
	Loans held for sale				8,927			7,864			4,730			2,525			3,206
	Loans, net of unearned income				1,029,955			1,005,390			991,552			1,000,212			989,021
	Allowance for credit losses				(15,278	)		(15,612	)		(15,643	)		(15,786	)		(15,790	)
	Premises and equipment, net				20,715			20,860			20,985			21,378			21,934
	Federal Reserve and FHLB Stock, at cost				5,223			5,204			6,512			7,279			6,261
	Foreclosed assets and other assets				-			510			510			511			629
	Interest receivable				4,842			4,818			3,706			4,657			6,673
	Goodwill				23,239			23,239			23,239			23,239			23,239
	Cash value of life insurance				30,488			30,294			30,103			29,121			29,291
	Mortgage servicing rights				14,357			14,548			14,191			13,906			13,893
	Other assets				8,916			12,815			13,869			11,999			15,120

			Total assets	$	1,393,949		$	1,342,186		$	1,336,012		$	1,343,249		$	1,326,474



LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand		$	222,425		$	208,244		$	219,395		$	228,713		$	224,182
		Interest bearing demand			202,097			190,857			169,171			166,413			174,729
		Savings			241,761			231,855			244,157			216,965			226,077
		Money market			228,182			225,650			221,362			202,605			216,565
		Time deposits			265,068			258,582			258,257			255,509			243,766

			Total deposits		1,159,533			1,115,188			1,112,342			1,070,205			1,085,319

	Short-term borrowings				15,240			15,178			12,916			13,387			16,519
	Federal Home Loan Bank advances				35,000			35,000			35,000			83,600			59,500
	Trust preferred securities				10,310			10,310			10,310			10,310			10,310
	Subordinated debt net of issuance costs				19,678			19,666			19,654			19,642			19,630
	Interest payable				3,374			2,944			2,772			2,443			2,216
	Other liabilities				17,973			18,421			19,295			19,320			20,632

			Total liabilities		1,261,108			1,216,707			1,212,289			1,218,907			1,214,126

	Shareholders' Equity
		Common stock			61,319			61,319			61,319			61,319			61,319
		Additional paid-in capital			15,090			15,195			14,978			15,124			15,037
		Retained earnings			113,515			112,104			109,938			108,486			105,521
		Accumulated other comprehensive loss			(24,870	)		(31,801	)		(31,547	)		(29,831	)		(39,517	)
		Treasury stock			(32,213	)		(31,338	)		(30,965	)		(30,756	)		(30,012	)

			Total shareholders' equity		132,841			125,479			123,723			124,342			112,348

			Total liabilities and shareholders' equity	$	1,393,949		$	1,342,186		$	1,336,012		$	1,343,249		$	1,326,474

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		2024		2024		2024		2023			2023			2024		2023
	Loans
	Taxable	$	14,513	$	13,883	$	13,547	$	13,438		$	13,128		$	41,943	$	37,969
	Tax exempt		127		124		123		124			122			374		359
	Securities
	Taxable		1,871		1,610		1,593		1,526			1,507			5,074		4,566
	Tax exempt		37		37		37		38			39			111		132

	Total interest income		16,548		15,654		15,300		15,126			14,796			47,502		43,026

Interest expense
	Deposits		5,568		5,208		5,090		4,398			4,194			15,866		10,310
	Repurchase agreements & other		43		36		34		39			16			113		35
	Federal Home Loan Bank advances		369		370		613		720			666			1,352		1,883
	Trust preferred securities		187		187		188		191			189			562		525
	Subordinated debt		195		194		195		194			195			584		584

	Total interest expense		6,362		5,995		6,120		5,542			5,260			18,477		13,337


Net interest income			10,186		9,659		9,180		9,584			9,536			29,025		29,689

	Provision for credit losses		200		-		-		(74	)		(6	)		200		389

Net interest income after provision
for loan losses			9,986		9,659		9,180		9,658			9,542			28,825		29,300

Noninterest income
	Wealth management fees		882		848		865		838			837			2,595		2,694
	Customer service fees		870		875		880		844			863			2,625		2,559
	Gain on sale of mtg. loans & OMSR		1,311		1,277		781		747			1,207			3,369		2,862
	Mortgage loan servicing fees, net		39		565		763		561			438			1,367		1,540
	Gain on sale of non-mortgage loans		20		105		10		177			10			135		252
	Title insurance revenue		485		406		266		378			429			1,157		1,257
	Net gain on sales of securities		-		-		-		1,453			-			-		-
	Gain (loss) on sale of assets		200		-		-		16			-			200		4
	Other		316		310		386		517			379			1,012		1,022

	Total noninterest income		4,123		4,386		3,951		5,531			4,163			12,460		12,190

Noninterest expense
	Salaries and employee benefits		6,057		6,009		5,352		5,652			5,491			17,418		17,125
	Net occupancy expense		706		707		769		746			764			2,182		2,350
	Equipment expense		1,069		1,060		1,077		1,027			1,068			3,206		3,051
	Data processing fees		758		727		769		680			648			2,254		1,979
	Professional fees		659		615		758		926			623			2,032		2,098
	Marketing expense		241		176		197		182			189			614		600
	Telephone and communication expense		128		156		105		132			124			389		369
	Postage and delivery expense		145		89		97		167			100			331		265
	State, local and other taxes		208		230		245		285			218			683		664
	Employee expense		228		159		178		146			141			565		485
	Other expenses		804		743		735		426			1,115			2,282		2,607

	Total noninterest expense		11,003		10,671		10,282		10,369			10,481			31,956		31,593


Income before income tax expense			3,106		3,374		2,849		4,820			3,224			9,329		9,897

	Income tax expense		752		261		481		937			537			1,494		1,685

Net income		$	2,354	$	3,113	$	2,368	$	3,883		$	2,687		$	7,835	$	8,212

Common share data:
	Basic earnings per common share	$	0.35	$	0.47	$	0.35	$	0.58		$	0.40		$	1.17	$	1.20

	Diluted earnings per common share	$	0.35	$	0.47	$	0.35	$	0.57		$	0.39		$	1.17	$	1.18

Average shares outstanding (in thousands):
	Basic:		6,660		6,692		6,715		6,748			6,791			6,689		6,857
	Diluted:		6,675		6,700		6,723		6,851			6,878			6,704		6,944

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	2024			2024			2024			2023			2023			2024			2023

Net interest income	$	10,186		$	9,659		$	9,180		$	9,584		$	9,536		$	29,025		$	29,689
Tax-equivalent adjustment		44			43			43			43			43			129			88
Tax-equivalent net interest income		10,230			9,702			9,223			9,627			9,579			29,154			29,777
Provision for credit loss		200			-			-			(74	)		(6	)		200			389
Noninterest income		4,123			4,386			3,951			5,531			4,163			12,460			12,190
Total operating revenue		14,309			14,045			13,131			15,115			13,699			41,485			41,879
Noninterest expense		11,003			10,671			10,282			10,369			10,481			31,956			31,593
Pre-tax pre-provision income		3,306			3,374			2,849			4,746			3,218			9,529			10,286
Net income		2,354			3,113			2,368			3,883			2,687			7,835			8,212

PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.35			0.47			0.35			0.58			0.40			1.17			1.20
Diluted earnings per share		0.35			0.47			0.35			0.57			0.39			1.17			1.18
Common dividends		0.140			0.140			0.135			0.135			0.130			0.415			0.385
Book value per common share		20.05			18.80			18.46			18.50			16.59			20.05			16.59
Tangible book value per common share (TBV)		16.49			15.26			14.93			14.98			13.09			16.49			13.09
Market price per common share		20.56			14.00			13.78			15.35			13.50			20.56			13.50
Market price to TBV		124.7	%		91.8	%		92.3	%		102.5	%		103.1	%		124.7	%		103.1	%
Market price to trailing 12 month EPS		11.8			7.9			7.9			8.8			8.0			11.8			8.0

PERFORMANCE RATIOS:
Return on average assets (ROAA)		0.68	%		0.93	%		0.71	%		1.17	%		0.80	%		0.77	%		0.81	%
Pre-tax pre-provision ROAA		0.96	%		1.01	%		0.85	%		1.43	%		0.96	%		1.01	%		1.10	%
Return on average equity (ROE)		7.32	%		10.16	%		7.70	%		13.23	%		9.25	%		8.41	%		8.72	%
Return on average tangible equity		8.97	%		12.59	%		9.53	%		16.57	%		11.62	%		10.39	%		10.75	%
Efficiency ratio		76.78	%		75.86	%		78.17	%		68.44	%		79.00	%		76.91	%		75.28	%
Earning asset yield		5.16	%		5.02	%		4.97	%		4.89	%		4.78	%		5.05	%		4.61	%
Cost of interest bearing liabilities		2.53	%		2.47	%		2.55	%		2.33	%		2.18	%		2.52	%		1.85	%
Net interest margin		3.17	%		3.10	%		2.98	%		3.10	%		3.08	%		3.08	%		3.18	%
Tax equivalent effect		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%
Net interest margin, tax equivalent		3.19	%		3.11	%		2.99	%		3.11	%		3.09	%		3.09	%		3.20	%
Non interest income/Average assets		1.20	%		1.31	%		1.19	%		1.67	%		1.24	%		1.23	%		1.21	%
Non interest expense/Average assets		3.20	%		3.18	%		3.08	%		3.12	%		3.13	%		3.15	%		3.13	%
Net noninterest expense/Average assets		-2.00	%		-1.87	%		-1.90	%		-1.46	%		-1.89	%		-1.92	%		-1.92	%

ASSET QUALITY RATIOS:
Gross charge-offs		29			-			66			5			12			95			113
Recoveries		2			16			9			1			7			27			25
Net charge-offs		27			(16	)		57			4			5			68			88
Nonperforming loans/Total loans		0.54	%		0.47	%		0.25	%		0.28	%		0.34	%		0.54	%		0.34	%
Nonperforming assets/Loans & OREO		0.54	%		0.52	%		0.30	%		0.33	%		0.40	%		0.54	%		0.40	%
Nonperforming assets/Total assets		0.40	%		0.39	%		0.22	%		0.25	%		0.30	%		0.40	%		0.30	%
Allowance for credit loss/Nonperforming loans		276.83	%		329.78	%		642.69	%		560.18	%		474.32	%		276.83	%		474.32	%
Allowance for credit loss/Total loans		1.48	%		1.55	%		1.58	%		1.58	%		1.60	%		1.48	%		1.60	%
Net loan charge-offs/Average loans (ann.)		0.01	%		(0.01	%)		0.02	%		0.00	%		0.00	%		0.01	%		0.01	%

CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		88.82	%		90.15	%		89.14	%		93.46	%		91.13	%		88.82	%		91.13	%
Equity/ Assets		9.53	%		9.35	%		9.26	%		9.26	%		8.47	%		9.53	%		8.47	%
Tangible equity/Tangible assets		7.97	%		7.72	%		7.63	%		7.63	%		6.81	%		7.97	%		6.81	%
Common equity tier 1 ratio (Bank)		13.53	%		13.98	%		13.84	%		13.42	%		13.56	%		13.53	%		13.56	%

END OF PERIOD BALANCES
Total assets		1,393,949			1,342,186			1,336,012			1,343,249			1,326,474			1,393,949			1,326,474
Total loans		1,029,955			1,005,390			991,552			1,000,212			989,021			1,029,955			989,021
Deposits		1,159,533			1,115,188			1,112,342			1,070,205			1,085,319			1,159,533			1,085,319
Shareholders equity		132,841			125,479			123,723			124,342			112,348			132,841			112,348
Goodwill and intangibles		23,613			23,630			23,646			23,662			23,687			23,613			23,687
Tangible equity		109,228			101,849			100,077			100,680			88,661			109,228			88,661
Mortgage servicing portfolio		1,406,273			1,389,805			1,371,713			1,366,667			1,367,209			1,406,273			1,367,209
Wealth/Brokerage assets under care		557,724			525,713			525,517			501,829			478,236			557,724			478,236
Total assets under care		3,357,946			3,257,704			3,233,242			3,211,745			3,171,919			3,357,946			3,171,919
Full-time equivalent employees		248			249			245			251			252			248			252
Period end common shares outstanding		6,624			6,676			6,702			6,720			6,773			6,624			6,773
Market capitalization (all)		136,189			93,458			92,359			103,147			91,437			136,189			91,437

AVERAGE BALANCES
Total assets		1,376,849			1,342,847			1,333,236			1,327,415			1,339,870			1,350,580			1,344,467
Total earning assets		1,283,407			1,246,099			1,230,736			1,236,165			1,239,145			1,255,335			1,243,094
Total loans		1,018,262			1,005,018			993,310			992,337			989,089			1,005,577			982,817
Deposits		1,145,964			1,120,367			1,091,803			1,084,939			1,095,414			1,119,276			1,098,593
Shareholders equity		128,608			122,510			123,058			117,397			116,165			124,218			125,580
Goodwill and intangibles		23,621			23,638			23,654			23,675			23,698			23,638			23,720
Tangible equity		104,987			98,872			99,404			93,722			92,467			100,580			101,860
Average basic shares outstanding		6,660			6,692			6,715			6,748			6,791			6,689			6,857
Average diluted shares outstanding		6,675			6,700			6,723			6,851			6,878			6,704			6,944

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three and Nine Months Ended Sep. 30, 2024 and 2023

($ in thousands)

SB Financial Group Announces Third Quarter 2024 Results