(MENAFN- GlobeNewsWire - Nasdaq) DEFIANCE, Ohio, Oct. 30, 2025 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the“Company”) , a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the third quarter ended September 30, 2025.

Third Quarter 2025 Highlights compared to the third quarter of the prior year include:

• GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.0 million, or $0.64 per DEPS, well above the $2.4 million, or $0.35 per DEPS in the prior year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”), was $4.3 million, up 57.4 percent compared to $2.7 million for the prior-year period. Adjusted DEPS of $0.68 was also up 65.3 percent, from the prior year.
• Net interest income of $12.3 million increased by 21.1 percent from $10.2 million reported in the prior-year quarter.
• Loan growth of $80.6 million, or 7.8 percent from the prior-year quarter, with growth from the linked quarter of $15.8 million, or 1.4 percent. This marks six consecutive quarters of sequential loan growth. Loan growth adjusted for the Marblehead acquisition was $62.7 and $15.9 million, from the prior year and linked quarters, respectively.
• Deposit growth of $103 million, or 8.9 percent from the prior-year quarter, with an increase from the linked quarter of $12.7 million, or 1.0 percent. Adjusted for the Marblehead acquisition, total deposits increased $52.1 million from the prior year.
• Tangible book value (“TBV”) per share ended the quarter at $17.21 up $0.72 per share or 4.4 percent from the prior year quarter.
  

Nine months ended September 30, 2025 Highlights compared to the same period of the prior year:

• Mortgage Banking Revenue increased to $5.1 million, up by 7.8 percent from $4.7 million.
• Net interest income rose to $35.7 million, representing a year-over-year improvement of 23.1 percent from $29.0 million for the nine months ending September 30, 2024.
• Total interest expense came in at $18.9 million, up slightly by 2.3 percent from $18.5 million in the prior year period.
  

Earnings Highlights	Three Months Ended			Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2025	Sep. 2024	% Change			Sep. 2025	Sep. 2024	% Change
Operating revenue	$	16,578		$	14,309		15.9	%			$	49,140		$	41,485		18.5	%
Interest income		18,809			16,548		13.7	%				54,648			47,502		15.0	%
Interest expense		6,475			6,362		1.8	%				18,907			18,477		2.3	%
Net interest income		12,334			10,186		21.1	%				35,741			29,025		23.1	%
Provision for credit losses		124			200		-38.0	%				1,108			200		454.0	%
Noninterest income		4,244			4,123		2.9	%				13,399			12,460		7.5	%
Noninterest expense		11,498			11,003		4.5	%				35,760			31,956		11.9	%
Net income		4,046			2,354		71.9	%				10,056			7,835		28.3	%
Adjusted Earnings per diluted share		0.68			0.41		65.9	%				1.67			1.20		39.2	%
Earnings per diluted share		0.64			0.35		82.9	%				1.56			1.17		33.3	%
Adjusted Return on Avg. Assets		1.13	%		0.79	%	43.0	%				0.96	%		0.79	%	21.5	%
Return on average assets		1.07	%		0.68	%	57.4	%				0.90	%		0.77	%	16.9	%
Adjusted Return on Avg. Equity		12.79	%		8.42	%	51.9	%				10.84	%		8.62	%	25.8	%
Return on average equity		12.08	%		7.28	%	65.9	%				10.15	%		8.41	%	20.7	%

“Net income for the third quarter was $4.0 million, a 71.9 percent increase from the prior-year quarter, with the GAAP DEPS of $0.64 up 82.9 percent from the prior year,” said Mark A. Klein, Chairman, President, and CEO. This marks our 59^th consecutive quarter of profitability, which also included the second full quarter of contribution from the Marblehead acquisition, which strengthened our liquidity profile and further extended our market presence in Northern Ohio.

Net interest income for the quarter grew by $2.1 million to $12.3 million compared to the previous year, driven by sustained loan growth and stabilization of funding costs. Total loans increased by $80.6 million, compared to the prior year, and by $15.8 million from the linked quarter. On an organic basis, excluding the Marblehead acquisition, loan balances increased $62.7 million from the prior year. Deposits rose $103.0 million, or 8.9 percent, to $1.26 billion, reflecting both acquired balances and solid client retention. Excluding acquired deposits, organic growth totaled $52.1 million, underscoring the strength of our client relationships and the resiliency of our franchise.”

RESULTS OF OPERATIONS

In the third quarter of 2025, total operating revenue increased to $16.6 million, a 15.9 percent rise from $14.3 million in the prior year and a 3.5 percent decrease from the linked quarter. The year-over-year increase reflected higher net interest income and continued growth in non-interest income. Net interest income reached $12.3 million, a strong 21 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.9 million to $16.6 million along with a marginal increase in interest expense of $113,000 to $6.5 million. Deposit costs increased by 2.7 percent to $5.7 million but were partially offset by decreases in interest expenses on other funding sources, resulting in a 1.8 percent increase in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 32 basis points year-over-year to 3.48 percent, reflecting disciplined balance sheet management and moderation in funding cost pressures. Noninterest income for the quarter increased by 2.9 percent year-over-year to $4.2 million due primarily to improvements in wealth management fees, mortgage loan servicing fees, title insurance, other non-interest income fees as well as modest increases in customer service fees and gain on sale of mortgage loans. These fees were partially offset by decreases in gain on sales of non-mortgage loans and loss on sale of assets.“We remain focused on executing a balanced growth strategy, maintaining diversified sources of revenue, and exercising disciplined expense management,” said Mr. Klein.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.5 million, up $136,000 from the prior-year quarter. Loan servicing fees added $914,000 to revenue, reflecting an increase of $40,000 from the prior-year quarter. The OMSR net valuation adjustment for the third quarter of 2025 was a negative $301,000 compared to a negative $465,000 in the third quarter of 2024.

Mortgage Banking
($ in thousands)	Sep. 2025	Jun. 2025	Mar. 2025	Dec. 2024	Sep. 2024		Prior Year Growth
Mortgage originations	$	67,609		$	97,901		$	39,775		$	72,534		$	70,715			$	(3,106	)
Mortgage sales		66,408			74,313			39,279			62,301			61,271				5,137
Mortgage servicing portfolio		1,470,360			1,456,374			1,432,184			1,427,318			1,406,273				64,087
Mortgage servicing rights		15,347			15,458			14,965			14,868			14,357				990
Revenue
Loan servicing fees		914			904			894			886			874				40
OMSR amortization		(455	)		(469	)		(294	)		(358	)		(370	)			(85	)
Net administrative fees		459			435			600			528			504				(45	)
OMSR valuation adjustment		(301	)		159			11			288			(465	)			164
Net loan servicing fees		158			594			611			816			39				119
Gain on sale of mortgages		1,328			1,565			849			1,196			1,311				17
Mortgage banking revenue, net	$	1,486		$	2,159		$	1,460		$	2,012		$	1,350			$	136

Noninterest Income and Noninterest Expense

"Noninterest income for the third quarter of 2025 totaled $4.2 million, up $121,000 or 2.9 percent from the prior-year quarter, primarily due to increased mortgage loan servicing fees and other noninterest income fees, underscoring the continued strength of our fee-based businesses. Compared to the prior-year quarter, mortgage loan services fees, improved by $119,000 year over year, and other noninterest income fees added $91,000, reflecting the benefits of our diversified revenue base,” Mr. Klein noted.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)		Sep. 2025	Jun. 2025	Mar. 2025	Dec. 2024	Sep. 2024		Prior Year Growth
Noninterest Income (NII)		$	4,244		$	5,048		$	4,107		$	4,557		$	4,123			$	121
NII / Total Revenue			25.6	%		29.4	%		26.7	%		29.5	%		28.8	%			-3.2	%
NII / Average Assets			1.1	%		1.4	%		1.1	%		1.3	%		1.2	%			-0.1	%
Total Revenue Growth			15.9	%		22.3	%		17.2	%		2.2	%		4.5	%			11.4	%
Noninterest Expense (NIE)		$	11,498		$	11,852		$	12,410		$	11,003		$	11,003			$	495
Efficiency Ratio			69.0	%		68.9	%		80.0	%		71.1	%		76.8	%			-7.8	%
NIE / Average Assets			3.0	%		3.2	%		3.4	%		3.2	%		3.2	%			-0.2	%
Net Noninterest Expense/Avg. Assets			-1.9	%		-1.8	%		-2.3	%		-1.8	%		-2.0	%			0.1	%
Total Expense Growth			4.5	%		11.1	%		20.7	%		6.1	%		5.0	%			-0.5	%

Noninterest expense for the third quarter of 2025 was $11.5 million, up 4.5 percent from the prior year, driven primarily by increased salary and benefit expenses, equipment expenses and professional fees.

“Our efficiency ratio in the third quarter of 2025 was 69.0 percent highlighting our commitment to disciplined expense management and balanced revenue growth,” stated Mr. Klein.

Balance Sheet

As of September 30, 2025, SB Financial reported total assets of $1.50 billion, higher than the linked quarter and the previous year. Year-over-year growth was primarily driven by a robust increase in the loan portfolio, which reached $1.11 billion, marking an $80.6 million or 7.8 percent increase year over year. Loan growth also included $18.0 million in loans added with the completion of the Marblehead acquisition. Cash increased by $35.7 million from the prior year, driven by investment portfolio runoff and deposit growth. Key metrics this quarter included our loan-to-deposit ratio of 88 percent and our loan to asset ratio of 74 percent, both of which were in the upper range of our target levels.

Total deposits increased to $1.26 billion, growing $103.0 million or 8.9 percent year over year, including $50.9 million in low-cost deposits from the acquisition and $52.1 million in organic deposit growth reflecting SB Financial's successful efforts in deposit gathering and customer engagement within dynamic markets. Shareholders' equity ended the quarter at $137.0 million, representing a $4.1 million increase from the prior year. The increase highlights management's consistent efforts to deliver sustainable growth and enhance shareholder returns.

During the third quarter, SB Financial repurchased approximately 101,000 shares, a slight decrease from the prior quarter, reflecting management's disciplined and opportunistic approach to capital deployment when the share price trades below the target range. This activity demonstrates the Company's balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases while maintaining sufficient capital to fund future growth.

"As we progress through the fourth quarter of 2025, the Company's solid balance sheet and prudent capital management provide a strong foundation to navigate the current environment and support future growth," said Mr. Klein. "We were pleased to achieve our sixth consecutive quarter of sequential loan growth, supported by sound credit quality and consistent execution across our markets, with total loan balances rising $80.6 million from the prior year, including $62.7 million of organic loan growth. This continued trajectory reflects the depth of our client relationships, the resiliency of our business model, and the disciplined manner in which we deploy capital across our markets. Our strong asset quality metrics and top-tier reserve coverage remain central to our financial strength and position us well to navigate the current operating environment. As we look ahead, we remain focused on driving organic growth, maintaining disciplined expense management, and delivering long-term value for our shareholders.”

Loan Balances
($ in thousands, except ratios)	Sep. 2025	Jun. 2025	Mar. 2025	Dec. 2024	Sep. 2024	Annual Growth
Commercial	$	117,581		$	118,984		$	125,878		$	124,764		$	123,821		$	(6,240	)
% of Total		10.6	%		10.9	%		11.6	%		11.9	%		12.0	%		-5.0	%
Commercial RE		535,307			525,671			509,518			479,573			459,449			75,858
% of Total		48.2	%		48.0	%		46.8	%		45.8	%		44.6	%		16.5	%
Agriculture		65,150			60,924			61,443			64,680			64,887			263
% of Total		5.9	%		5.6	%		5.6	%		6.2	%		6.3	%		0.4	%
Residential RE		309,140			310,126			319,307			308,378			314,010			(4,870	)
% of Total		27.8	%		28.3	%		29.3	%		29.5	%		30.5	%		-1.6	%
Consumer & Other		83,367			79,014			72,128			69,340			67,788			15,579
% of Total		7.5	%		7.2	%		6.6	%		6.6	%		6.6	%		23.0	%
Total Loans	$	1,110,545		$	1,094,719		$	1,088,274		$	1,046,735		$	1,029,955		$	80,590
Total Growth Percentage							7.8	%
Deposit Balances
($ in thousands, except ratios)	Sep. 2025	Jun. 2025	Mar. 2025	Dec. 2024	Sep. 2024	Annual Growth
Non-Int DDA	$	246,725		$	241,245		$	240,446		$	232,155		$	222,425		$	24,300
% of Total		19.5	%		19.3	%		18.9	%		20.1	%		19.2	%		10.9	%
Interest DDA		194,420			205,581			208,583			201,085			202,097			(7,677	)
% of Total		15.4	%		16.4	%		16.4	%		17.4	%		17.4	%		-3.8	%
Savings		290,111			282,311			285,902			237,987			241,761			48,350
% of Total		23.0	%		22.6	%		22.5	%		20.6	%		20.8	%		20.0	%
Money Market		261,953			249,536			257,013			222,161			228,182			33,771
% of Total		20.7	%		20.0	%		20.2	%		19.3	%		19.7	%		14.8	%
Time Deposits		269,313			271,149			279,276			259,217			265,068			4,245
% of Total		21.3	%		21.7	%		22.0	%		22.5	%		22.9	%		1.6	%
Total Deposits	$	1,262,522		$	1,249,822		$	1,271,220		$	1,152,605		$	1,159,533		$	102,989
Total Growth Percentage							8.9	%

Asset Quality

As of September 30, 2025, SB Financial continued to focus on strong asset quality metrics. Nonperforming assets totaled $4.9 million, representing 0.32 percent of total assets, a decrease of $665,000 compared to $5.5 million or 0.40 percent of total assets reported in the prior year, and a continued improvement from linked quarter balance of $6.2 million, representing 0.41 percent of total assets.

The allowance for credit losses remained strong at 1.44 percent of total loans, providing 345.4 percent coverage of non-performing loans, a level consistent with the linked quarter and reflective of our conservative approach to risk management. The net loan charge-offs to average loans ratio remained modest at 0 basis points, declining from 2 basis points in the linked quarter and 1 basis point recorded in the prior year. These metrics reflect our continued focus on disciplined credit practices and effective collateral management.

"Our asset quality metrics continue to reflect the strength of our portfolio and disciplined approach to risk management”, stated Mr. Klein.“We were especially pleased with the improvement in non-performing loans, which were the result of our determined efforts to resolve several longer-term problem credits. We remain focused on maintaining conservative credit practices while supporting prudent growth and delivering long-term value for our shareholders.”

Nonperforming Assets						Annual Change
($ in thousands, except ratios)	Sep. 2025	Jun. 2025	Mar. 2025	Dec. 2024	Sep. 2024
Commercial & Agriculture	$	2,243		$	3,274		$	3,418		$	2,927		$	2,899		$	(656	)
% of Total Com./Ag. loans		1.23	%		1.82	%		1.82	%		1.55	%		1.54	%		-22.6	%
Commercial RE		778			816			798			807			813			(35	)
% of Total CRE loans		0.15	%		0.16	%		0.16	%		0.17	%		0.18	%		-4.3	%
Residential RE		1,400			1,577			1,608			1,539			1,536			(136	)
% of Total Res. RE loans		0.45	%		0.51	%		0.50	%		0.50	%		0.49	%		-8.9	%
Consumer & Other		195			205			227			243			270			(75	)
% of Total Con./Oth. loans		0.23	%		0.26	%		0.31	%		0.35	%		0.40	%		-27.8	%
Total Nonaccruing Loans		4,616			5,872			6,051			5,516			5,518			(902	)
% of Total loans		0.42	%		0.54	%		0.56	%		0.53	%		0.54	%		-16.3	%
Foreclosed Assets and Other Assets		237			284			73			-			-			237
Total Change (%)						N/M
Total Nonperforming Assets	$	4,853		$	6,156		$	6,124		$	5,516		$	5,518		$	(665	)
% of Total assets		0.32	%		0.41	%		0.41	%		0.40	%		0.40	%		-12.05	%

Webcast and Conference Call

The Company will hold the third quarter 2025 earnings conference call and webcast on October 31, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at yourstatebank. An audio replay of the call will be available on the Company's website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has four loan production offices located throughout the Tri-State region of 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 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
...

Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
...

		SB FINANCIAL GROUP, INC.
		CONSOLIDATED BALANCE SHEETS - (Unaudited)
					September		June		March		December		September
			($ in thousands)			2025				2025				2025				2024				2024
ASSETS
	Cash and due from banks		$	85,025			$	79,463			$	105,145			$	25,928			$	49,348
	Interest bearing time deposits			2,025				1,565				1,565				1,565				1,706
	Available-for-sale securities			193,190				195,955				199,721				201,587				211,511
	Loans held for sale			4,736				12,774				4,286				6,770				8,927
	Loans, net of unearned income			1,110,545				1,094,719				1,088,274				1,046,735				1,029,955
	Allowance for credit losses			(15,943	)			(15,645	)			(15,391	)			(15,096	)			(15,278	)
	Premises and equipment, net			21,764				21,857				21,875				20,456				20,715
	Federal Reserve and FHLB Stock, at cost			5,466				5,466				5,340				5,223				5,223
	Foreclosed assets			237				284				73				-				-
	Interest receivable			5,455				5,299				5,072				4,908				4,842
	Goodwill			27,158				27,158				27,158				23,239				23,239
	Cash value of life insurance			32,004				31,060				30,871				30,685				30,488
	Mortgage servicing rights			15,347				15,458				14,965				14,868				14,357
	Other assets			9,254				10,888				12,048				12,649				8,916
			Total assets		$	1,496,263			$	1,486,301			$	1,501,002			$	1,379,517			$	1,393,949
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand		$	246,725			$	241,245			$	240,446			$	232,155			$	222,425
		Interest bearing demand			194,420				205,581				208,583				201,085				202,097
		Savings			290,111				282,311				285,902				237,987				241,761
		Money market			261,953				249,536				257,013				222,161				228,182
		Time deposits			269,313				271,149				279,276				259,217				265,068
			Total deposits			1,262,522				1,249,822				1,271,220				1,152,605				1,159,533
	Short-term borrowings			10,976				15,640				11,058				10,585				15,240
	Federal Home Loan Bank advances			35,000				35,000				35,000				35,000				35,000
	Trust preferred securities			10,310				10,310				10,310				10,310				10,310
	Subordinated debt net of issuance costs			19,726				19,715				19,702				19,690				19,678
	Interest payable			2,739				2,258				2,634				2,351				3,374
	Other liabilities			18,051				19,908				19,552				21,468				17,973
			Total liabilities			1,359,324				1,352,653				1,369,476				1,252,009				1,261,108
	Shareholders' Equity
		Common stock			61,319				61,319				61,319				61,319				61,319
		Additional paid-in capital			15,086				15,139				14,955				15,194				15,090
		Retained earnings			123,370				120,273				117,397				116,186				113,515
		Accumulated other comprehensive loss			(23,412	)			(25,492	)			(26,872	)			(30,234	)			(24,870	)
		Treasury stock			(39,424	)			(37,591	)			(35,273	)			(34,957	)			(32,213	)
			Total shareholders' equity			136,939				133,648				131,526				127,508				132,841
			Total liabilities and shareholders' equity	$	1,496,263			$	1,486,301			$	1,501,002			$	1,379,517			$	1,393,949

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		2025		2025			2025			2024		2024		2025		2024
	Loans
	Taxable		$	16,449		$	16,059			$	15,244			$	14,920			$	14,513		$	47,752		$	41,943
	Tax exempt			117			116				115				122				127			348			374
	Securities
	Taxable			1,097			1,133				1,169				1,178				1,192			3,399			3,692
	Tax exempt			35			35				38				35				37			108			111
	Other interest income			1,111			1,124				806				592				679			3,041			1,382
		Total interest income			18,809			18,467				17,372				16,847				16,548			54,648			47,502
Interest expense
	Deposits			5,721			5,597				5,352				5,169				5,568			16,670			15,866
	Repurchase agreements & other			28			21				24				41				43			73			113
	Federal Home Loan Bank advances		369			366				362				369				369			1,097			1,352
	Trust preferred securities			162			161				160				177				187			483			562
	Subordinated debt			195			194				195				194				195			584			584
		Total interest expense			6,475			6,339				6,093				5,950				6,362			18,907			18,477
Net interest income			12,334			12,128				11,279				10,897				10,186			35,741			29,025
	Provision for credit losses			124			597				387				(76	)			200			1,108			200
Net interest income after provision for loan losses			12,210			11,531				10,892				10,973				9,986			34,633			28,825
Noninterest income
	Wealth management fees			912			859				864				916				882			2,635			2,595
	Customer service fees			887			886				879				842				870			2,652			2,625
	Gain on sale of mtg. loans & OMSR		1,328			1,566				849				1,196				1,311			3,743			3,369
	Mortgage loan servicing fees, net			158			594				611				816				39			1,363			1,367
	Gain on sale of non-mortgage loans		8			82				15				10				20			105			135
	Title insurance revenue			544			582				397				478				485			1,523			1,157
	Net gain on sales of securities			-			-				-				-				-			-			-
	Gain (loss) on sale of assets			-			-				-				-				200			-			200
	Other			407			479				492				299				316			1,378			1,012
		Total noninterest income			4,244			5,048				4,107				4,557				4,123			13,399			12,460
Noninterest expense
	Salaries and employee benefits			6,198			6,595				6,237				6,185				6,057			19,030			17,418
	Net occupancy expense			801			793				893				702				706			2,487			2,182
	Equipment expense			1,188			1,121				1,072				1,127				1,069			3,381			3,206
	Data processing fees			723			888				1,439				821				758			3,050			2,254
	Professional fees			863			892				1,034				895				659			2,789			2,032
	Marketing expense			174			190				165				207				241			529			614
	Telephone and communication expense			123			125				139				136				128			387			389
	Postage and delivery expense			157			107				137				116				145			401			331
	State, local and other taxes			268			268				224				224				208			760			683
	Employee expense			255			176				174				168				228			605			565
	Other expenses			748			697				896				422				804			2,341			2,282
		Total noninterest expense			11,498			11,852				12,410				11,003				11,003			35,760			31,956
Income before income tax expense			4,956			4,727				2,589				4,527				3,106			12,272			9,329
	Income tax expense			910			875				431				892				752			2,216			1,494
Net income		$	4,046		$	3,852			$	2,158			$	3,635			$	2,354		$	10,056		$	7,835
Common share data:
	Basic earnings per common share		$	0.64		$	0.60			$	0.33			$	0.55			$	0.35		$	1.57		$	1.17
	Diluted earnings per common share	$	0.64		$	0.60			$	0.33			$	0.55			$	0.35		$	1.56		$	1.17
Average shares outstanding (in thousands):
	Basic:			6,297			6,448				6,481				6,575				6,660			6,408			6,689
	Diluted:			6,311			6,459				6,502				6,599				6,675			6,427			6,704

SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share & ratios)	At and for the Three Months Ended		Nine Months Ended
SUMMARY OF		September		June		March		December		September		September		September
OPERATIONS			2025				2025				2025				2024				2024				2025				2024
Net interest income		$	12,334			$	12,128			$	11,279			$	10,897			$	10,186			$	35,741			$	29,025
Tax-equivalent adjustment			40				40				41				42				44				121				129
Tax-equivalent net interest income			12,374				12,168				11,320				10,939				10,230				35,862				29,154
Provision for credit loss			124				597				387				(76	)			200				1,108				200
Noninterest income			4,244				5,048				4,107				4,557				4,123				13,399				12,460
Total operating revenue			16,578				17,176				15,386				15,454				14,309				49,140				41,485
Noninterest expense			11,498				11,852				12,410				11,003				11,003				35,760				31,956
Pre-tax pre-provision income			5,080				5,324				2,976				4,451				3,306				13,380				9,529
Net income			4,046				3,852				2,158				3,635				2,354				10,056				7,835
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.64				0.60				0.33				0.55				0.35				1.57				1.17
Diluted earnings per share			0.64				0.60				0.33				0.55				0.35				1.56				1.17
Common dividends			0.150				0.150				0.145				0.145				0.140				0.445				0.415
Book value per common share			21.85				21.02				20.29				19.64				20.05				21.85				20.05
Tangible book value per common share (TBV)			17.21				16.44				15.79				16.00				16.49				17.21				16.49
Market price per common share			19.29				19.10				20.82				20.91				20.56				19.29				20.56
Market price to TBV			112.1	%			116.2	%			131.8	%			130.7	%			124.7	%			112.1	%			124.7	%
Market price to trailing 12 month EPS			9.1				10.4				12.2				12.1				11.8				9.1				11.8
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.07	%			1.03	%			0.60	%			1.04	%			0.68	%			0.90	%			0.77	%
Pre-tax pre-provision ROAA			1.34	%			1.42	%			0.83	%			1.27	%			0.96	%			1.29	%			1.01	%
Return on average equity (ROE)			12.08	%			11.67	%			6.63	%			11.07	%			7.28	%			10.15	%			8.41	%
Return on average tangible equity			15.47	%			14.97	%			8.32	%			13.51	%			8.92	%			12.89	%			10.39	%
Efficiency ratio			69.00	%			68.90	%			80.00	%			71.09	%			76.78	%			72.41	%			76.91	%
Earning asset yield			5.31	%			5.29	%			5.23	%			5.18	%			5.16	%			5.27	%			5.05	%
Cost of interest bearing liabilities			2.33	%			2.33	%			2.32	%			2.36	%			2.53	%			2.33	%			2.52	%
Net interest margin			3.48	%			3.48	%			3.40	%			3.35	%			3.16	%			3.44	%			3.08	%
Tax equivalent effect			0.02	%			0.01	%			0.01	%			0.01	%			0.01	%			0.02	%			0.02	%
Net interest margin, tax equivalent			3.50	%			3.49	%			3.41	%			3.36	%			3.17	%			3.46	%			3.10	%
Non interest income/Average assets			1.12	%			1.35	%			1.14	%			1.30	%			1.19	%			1.20	%			1.23	%
Non interest expense/Average assets			3.04	%			3.17	%			3.45	%			3.14	%			3.18	%			3.21	%			3.16	%
Net noninterest expense/Average assets			-1.92	%			-1.82	%			-2.31	%			-1.84	%			-1.99	%			-2.01	%			-1.93	%
ASSET QUALITY RATIOS:
Gross charge-offs			11				49				86				195				29				146				95
Recoveries			9				3				2				13				2				14				27
Net charge-offs			2				46				84				182				27				132				68
Nonperforming loans/Total loans			0.42	%			0.54	%			0.56	%			0.53	%			0.54	%			0.42	%			0.54	%
Nonperforming assets/Loans & OREO			0.44	%			0.56	%			0.56	%			0.53	%			0.54	%			0.44	%			0.54	%
Nonperforming assets/Total assets			0.32	%			0.41	%			0.41	%			0.40	%			0.40	%			0.32	%			0.40	%
Allowance for credit loss/Nonperforming loans			345.39	%			266.43	%			254.35	%			273.68	%			276.83	%			345.39	%			276.83	%
Allowance for credit loss/Total loans			1.44	%			1.43	%			1.41	%			1.44	%			1.48	%			1.44	%			1.48	%
Net loan charge-offs/Average loans (ann.)			0.00	%			0.02	%			0.03	%			0.07	%			0.01	%			0.02	%			0.01	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			87.96	%			87.59	%			85.61	%			90.81	%			88.82	%			87.96	%			88.82	%
Equity/ Assets			9.15	%			8.99	%			8.76	%			9.24	%			9.53	%			9.15	%			9.53	%
Tangible equity/Tangible assets			7.35	%			7.17	%			6.96	%			7.66	%			7.97	%			7.35	%			7.97	%
Common equity tier 1 ratio (Bank)			12.33	%			12.53	%			12.35	%			13.43	%			13.19	%			12.33	%			13.19	%
END OF PERIOD BALANCES
Total assets			1,496,263				1,486,301				1,501,002				1,379,517				1,393,949				1,496,263				1,393,949
Total loans			1,110,545				1,094,719				1,088,274				1,046,735				1,029,955				1,110,545				1,029,955
Deposits			1,262,522				1,249,822				1,271,220				1,152,605				1,159,533				1,262,522				1,159,533
Shareholders equity			136,939				133,648				131,526				127,508				132,841				136,939				132,841
Goodwill and intangibles			29,048				29,107				29,125				23,597				23,613				29,048				23,613
Tangible equity			107,891				104,541				102,401				103,911				109,228				107,891				109,228
Mortgage servicing portfolio			1,470,360				1,456,374				1,432,184				1,427,318				1,406,273				1,470,360				1,406,273
Wealth/Brokerage assets under care			563,036				536,836				519,158				547,697				557,724				563,036				557,724
Total assets under care			3,529,659				3,479,511				3,452,344				3,354,532				3,357,946				3,529,659				3,357,946
Full-time equivalent employees			253				256				262				252				248				253				248
Period end common shares outstanding			6,268				6,359				6,483				6,494				6,624				6,268				6,624
Market capitalization (all)			120,907				121,453				134,982				135,780				136,189				120,907				136,189
AVERAGE BALANCES
Total assets			1,502,389				1,498,756				1,459,896				1,395,473				1,376,849				1,487,251				1,350,580
Total earning assets			1,404,330				1,399,485				1,346,354				1,301,872				1,283,407				1,387,258				1,255,335
Total loans			1,104,175				1,076,328				1,076,328				1,040,580				1,018,262				1,091,670				1,005,577
Deposits			1,270,783				1,270,798				1,227,449				1,163,531				1,145,964				1,256,732				1,119,276
Shareholders equity			132,866				132,353				131,944				130,647				128,608				132,426				124,218
Goodwill and intangibles			29,077				29,116				26,714				23,605				23,621				28,140				23,720
Tangible equity			103,789				103,237				105,230				107,042				104,987				104,286				100,498
Average basic shares outstanding			6,297				6,448				6,481				6,575				6,660				6,408				6,689
Average diluted shares outstanding			6,311				6,459				6,502				6,599				6,675				6,427				6,704

SB FINANCIAL GROUP, INC.
	Rate Volume Analysis - (Unaudited)
	For the Three Months Ended Sep. 30, 2025 and 2024
	($ in thousands)		Three Months Ended Sep. 30, 2025			Three Months Ended Sep. 30, 2024
			Average		Average			Average		Average
Assets		Balance	Interest	Rate			Balance	Interest	Rate
	Taxable securities		$	193,893		$	1,097	2.24	%			$	208,081		$	1,192	2.28	%
	Overnight Cash			100,164			1,111	4.40	%				51,578			679	5.24	%
	Nontaxable securities			6,098			35	2.28	%				6,402			37	2.30	%
	Loans, net			1,104,175			16,566	5.95	%				1,018,262			14,640	5.72	%
	Total earning assets			1,404,330			18,809	5.31	%				1,284,323			16,548	5.13	%
	Cash on hand			5,044							4,334
	Allowance for loan losses			(15,750	)						(15,601	)
	Premises and equipment			21,854							20,820
	Other assets			86,911							82,973
	Total assets		$	1,502,389						$	1,376,849
Liabilities
	Savings, MMDA and interest bearing demand		$	753,639		$	3,442	1.81	%			$	659,879		$	2,969	1.79	%
	Time deposits			267,984			2,279	3.37	%				264,188			2,599	3.91	%
	Repurchase agreements & other			14,015			28	0.79	%				16,240			43	1.05	%
	Advances from Federal Home Loan Bank			35,000			369	4.18	%				35,054			369	4.19	%
	Trust preferred securities			10,310			162	6.23	%				10,310			187	7.22	%
	Subordinated debt			19,719			195	3.92	%				19,670			195	3.94	%
	Total interest bearing liabilities			1,100,667			6,475	2.33	%				1,005,341			6,362	2.52	%
	Non interest bearing demand			249,160			-					221,897			-
	Total funding			1,349,827			1.90	%				1,227,238			2.06	%
					44.20	%					1
	Other liabilities			19,696							21,003
	Total liabilities			1,369,523							1,248,241
	Equity			132,866							128,608
	Total liabilities and equity		$	1,502,389						$	1,376,849
	Net interest income			$	12,334					$	10,186
	Net interest income as a percent of average interest-earning assets - GAAP measure	3.48	%					3.16	%
	Net interest income as a percent of average interest-earning assets - non GAAP	3.50	%					3.17	%
	- Computed on a fully tax equivalent (FTE) basis
			Nine Months Ended Sep. 30, 2025			Nine Months Ended Sep. 30, 2024
			Average		Average			Average		Average
Assets		Balance	Interest	Rate			Balance	Interest	Rate
	Taxable securities		$	198,463		$	3,399	2.29	%			$	210,992		$	3,692	2.34	%
	Overnight Cash			90,829			3,041	4.48	%				33,855			1,382	5.45	%
	Nontaxable securities			6,296			108	2.29	%				6,423			111	2.31	%
	Loans, net			1,091,670			48,100	5.89	%				1,005,577			42,317	5.62	%
	Total earning assets			1,387,258			54,648	5.27	%				1,256,847			47,502	5.05	%
	Cash on hand			4,880							4,431
	Allowance for loan losses			(15,492	)						(15,693	)
	Premises and equipment			21,555							21,026
	Other assets			89,050							83,969
	Total assets		$	1,487,251						$	1,350,580
Liabilities
	Savings, MMDA and interest bearing demand		$	734,938		$	9,624	1.75	%			$	634,122		$	8,270	1.74	%
	Time deposits			273,508			7,046	3.44	%				260,061			7,596	3.90	%
	Repurchase agreements & Other			12,549			73	0.78	%				14,708			113	1.03	%
	Advances from Federal Home Loan Bank			35,015			1,097	4.19	%				40,466			1,352	4.46	%
	Trust preferred securities			10,310			483	6.26	%				10,310			562	7.28	%
	Subordinated debt			19,707			584	3.96	%				19,658			584	3.97	%
	Total interest bearing liabilities			1,086,027			18,907	2.33	%				979,325			18,477	2.52	%
	Non interest bearing demand			248,286			1.89	%				225,093			2.05	%
	Total funding			1,334,313							1,204,418
	Other liabilities			20,512							21,944
	Total liabilities			1,354,825							1,226,362
	Equity			132,426							124,218
	Total liabilities and equity		$	1,487,251						$	1,350,580
	Net interest income			$	35,741					$	29,025
	Net interest income as a percent of average interest-earning assets - GAAP measure	3.44	%					3.08	%
	Net interest income as a percent of average interest-earning assets - non GAAP	3.46	%					3.10	%
	- 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, 2025		Sep. 30, 2024		Sep. 30, 2025		Sep. 30, 2024
Total Operating Revenue		$	16,578			$	14,309			$	49,140			$	41,485
Adjustment to (deduct)/add OMSR recapture/impairment *			301				465				131				246
Adjusted Total Operating Revenue			16,879				14,774				49,271				41,731
Total Operating Expense		$	11,498			$	10,481			$	35,760			$	31,956
Adjustment for merger expenses			-				-				(726	)			-
Adjusted Total Operating Expense			11,498				10,481				35,034				31,956
Income before Income Taxes			4,956				3,106				12,272				9,329
Adjustment for OMSR*/Merger Expenses			301				465				857				246
Adjusted Income before Income Taxes			5,257				3,571				13,129				9,575
Provision for Income Taxes			910				752				2,216				1,494
Adjustment for OMSR/Merger Expenses **			63				98				180				52
Adjusted Provision for Income Taxes			973				850				2,396				1,546
Net Income			4,046				2,354				10,056				7,835
Adjustment for OMSR*/Merger Expenses			238				367				677				194
Adjusted Net Income			4,284				2,721				10,733				8,029
Diluted Earnings per Share			0.64				0.35				1.56				1.17
Adjustment for OMSR*/Merger Expenses			0.04				0.06				0.11				0.03
Adjusted Diluted Earnings per Share		$	0.68			$	0.41			$	1.67			$	1.20
Return on Average Assets			1.07	%			0.68	%			0.90	%			0.77	%
Adjustment for OMSR*/Merger Expenses			0.06	%			0.11	%			0.06	%			0.01	%
Adjusted Return on Average Assets			1.13	%			0.79	%			0.96	%			0.79	%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate

MENAFN30102025004107003653ID1110273422