SB Financial Group Announces Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq) DEFIANCE, Ohio, Oct. 22, 2026 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the“Company”) , a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the quarter ended September 30, 2026.

Third Quarter 2026 Highlights compared to the third quarter of the prior year and linked quarter include:

• GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.63 per DEPS, a slight decline from the $4.0 million, or $0.64 per DEPS in the prior-year quarter.
  
• Total loans reached $1.22 billion, reflecting an increase of $108.2 million, or 9.7 percent, from the prior-year quarter and an improvement of $29.2 million, or 2.5 percent, from the linked quarter. The performance this quarter marks SBFG's tenth consecutive quarter of expansion in our loan portfolio.
  
• Total deposits climbed to $1.38 billion, increasing by $120.3 million, or 9.5 percent, from the prior year quarter, and down $8.3 million, or 0.6 percent, from the linked quarter.
  
• Tangible book value (“TBV”) per common share finished the quarter at $18.65, climbing $1.44 per share, or 8.3 percent, from $17.21 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $23.03 at quarter end.
  

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

• GAAP net income increased to $12.7 million, a 26.7 percent expansion compared to $10.1 million reported for the previous nine months, and diluted EPS was $2.04, an improvement of 31.1 percent from $1.56, same period last year.
  
• Net interest income rose to $39.1 million, representing a 9.4 percent improvement from the $35.7 million reported in the prior-year period.
  
• Noninterest income increased by 7.1 percent to $14.4 million compared to $13.4 million reported in the previous nine months.
  
• Noninterest expense expanded, increasing by 4.1 percent to $37.2 million from $35.8 million in the prior-year period. YTD operating leverage was strong at 1.7 times.
  

Earnings Highlights	Three Months Ended		Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2026	Sep. 2025	% Change		Sep. 2026	Sep. 2025	% Change
Operating revenue	$	18,075		$	16,578		9.0	%		$	53,440		$	49,140		8.8	%
Interest income		20,526			18,809		9.1	%			59,653			54,648		9.2	%
Interest expense		7,102			6,475		9.7	%			20,563			18,907		8.8	%
Net interest income		13,424			12,334		8.8	%			39,090			35,741		9.4	%
Provision for credit losses		127			124		-2.4	%			640			1,108		-42.2	%
Noninterest income		4,651			4,244		9.6	%			14,350			13,399		7.1	%
Noninterest expense		13,157			11,498		14.4	%			37,223			35,760		4.1	%
Net income		3,946			4,046		-2.5	%			12,739			10,056		26.7	%
Adjusted Earnings per diluted share		0.63			0.68		-7.4	%			1.99			1.67		19.2	%
Earnings per diluted share		0.63			0.64		-1.6	%			2.04			1.56		30.8	%
Adjusted Return on Avg. Assets		0.95	%		1.13	%	-15.9	%			1.03	%		0.96	%	7.3	%
Return on average assets		0.96	%		1.07	%	-10.3	%			1.06	%		0.90	%	17.8	%
Adjusted Return on Avg. Equity		10.44	%		12.79	%	-18.4	%			11.34	%		10.84	%	4.6	%
Return on average equity		10.53	%		12.08	%	-12.8	%			11.62	%		10.15	%	14.5	%

"Net income for the third quarter of 2026 was stable at $3.9 million, a 2.5 percent decrease from the prior-year quarter, with GAAP DEPS of $0.63, a decrease of 1.6 percent," said Mark A. Klein, Chairman, President, and Chief Executive Officer. While our bottom-line results were slightly lower compared to the prior year, this marks our 63rd consecutive quarter of profitability. Our performance this quarter reflects the continued resilience of our core community banking operations-highlighted by our tenth consecutive quarter of loan growth-and dynamic contributions from our fee-based business lines, which helped mitigate the impact of elevated operating expenses and broader economic pressures.

RESULTS OF OPERATIONS

Total operating revenue for the third quarter of 2026 was $18.1 million, an increase of 9.0 percent year-over-year and slightly improved from the linked quarter. This revenue growth was primarily driven by steady gains in our loan portfolio and resilience in noninterest income categories. Net interest income was $13.4 million for the third quarter of 2026, an increase from $12.3 million in the third quarter of 2025 and $13.0 million in the second quarter of 2026. Total interest income rose to $20.5 million, propelled by robust loan volume and repricing dynamics. Total interest expense was $7.1 million, a 9.7 percent increase from the prior-year period as deposit costs adjusted to the current rate environment. As a result, net interest margin was 3.50 percent, expanding 2 basis points from the third quarter of 2025.

Total loans increased $108.2 million, or 9.7 percent, from the prior-year quarter and $29.2 million, or 2.5 percent, from the linked quarter. Total deposits at quarter end expanded $120.3 million, or 9.5 percent, year-over-year to $1.38 billion, anchored by durable core customer relationships and ongoing deposit gathering initiatives across our footprint, despite a minor linked-quarter decrease of $8.3 million. Overall quarterly performance demonstrated disciplined balance sheet management, robust credit quality, and the strategic resilience of our diversified revenue streams.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.8 million, an increase of $293,000 from the prior-year quarter. Loan servicing fees added $946,000 for the quarter, an increase from the prior-year period. The OMSR valuation adjustment for the third quarter of 2026 was a recapture of $43,000, compared to a negative adjustment of $301,000 in the third quarter of 2025.

Mortgage Banking
($ in thousands)	Sep. 2026	Jun. 2026	Mar. 2026	Dec. 2025	Sep. 2025		Prior Year Growth
Mortgage originations	$	77,678		$	79,346		$	65,768		$	72,398		$	67,609			$	10,069
Mortgage sales		66,529			70,253			53,420			70,361			66,408				121
Mortgage servicing portfolio		1,517,593			1,504,657			1,482,052			1,479,982			1,470,360				47,233
Mortgage servicing rights		16,204			15,953			15,728			15,254			15,347				857
Revenue
Loan servicing fees		946			934			928			928			914				32
OMSR amortization		(472	)		(497	)		(529	)		(572	)		(455	)			(17	)
Net administrative fees		474			437			399			356			459				15
OMSR valuation adjustment		43			(54	)		452			(157	)		(301	)			344
Net loan servicing fees		517			383			851			199			158				359
Gain on sale of mortgages		1,262			1,541			978			1,272			1,328				(66	)
Mortgage banking revenue, net	$	1,779		$	1,924		$	1,829		$	1,471		$	1,486			$	293

Noninterest Income and Noninterest Expense

Total noninterest income for the third quarter of 2026 was $4.7 million, up 9.6 percent from the $4.2 million reported in the third quarter of 2025. The year-over-year expansion was driven primarily by higher net mortgage banking revenue, supported by increased loan servicing fees of $946,000 and a positive OMSR valuation recapture, alongside steady, consistent contributions from our Wealth Management and Title Insurance divisions. "The resilience of our fee based revenue stream validates our diversified business model, as cross-functional referral strategies continue to anchor our above median level of growth," Klein noted.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)		Sep. 2026	Jun. 2026	Mar. 2026	Dec. 2025	Sep. 2025		Prior Year Growth
Noninterest Income (NII)		$	4,651		$	4,987		$	4,712		$	3,708		$	4,244			$	407
NII / Total Revenue			25.7	%		27.8	%		27.0	%		22.6	%		25.6	%			0.1	%
NII / Average Assets			1.1	%		1.2	%		1.2	%		1.0	%		1.1	%			0.0	%
Total Revenue Growth			9.0	%		4.5	%		13.3	%		6.3	%		15.9	%			-6.9	%
Noninterest Expense (NIE)		$	13,157		$	12,137		$	11,929		$	11,239		$	11,498			$	1,659
Efficiency Ratio			72.5	%		67.3	%		68.1	%		68.1	%		69.0	%			3.5	%
NIE / Average Assets			3.2	%		3.0	%		3.1	%		2.9	%		3.0	%			0.2	%
Net Noninterest Expense/Avg. Assets			-2.1	%		-1.8	%		-1.9	%		-1.9	%		-1.9	%			-0.2	%
Total Expense Growth			14.4	%		2.4	%		-3.9	%		2.1	%		4.5	%			9.9	%

Noninterest expense for the third quarter of 2026 increased 14.4 percent to $13.2 million from $11.5 million in the prior-year quarter, driven by an increase of $1.14 million in salaries and employee benefits, which totaled $7.3 million, reflecting higher incentive costs and medical expenses. Data processing fees for the quarter stood at $1.12 million compared to $723,000 in the prior-year quarter, while marketing expenses increased to $358,000 from $174,000 in 3Q25. Both of these categories reflect higher costs related to several pending client and product conversions. These increases were partially offset by disciplined reductions in other expenses, which declined $95,000, and employee expenses, which decreased $41,000 from the prior-year period.“Our core efficiency ratio for the third quarter of 2026 was 72.46 percent, compared to 69.00 percent in the third quarter of 2025 and 67.32 percent in the linked quarter,” stated Mr. Klein.“While overhead was elevated this quarter, our fundamental focus on positive operating leverage and disciplined expense management remains a vital pillar as we proactively fund expansion across our growth markets.”

Balance Sheet

As of September 30, 2026, SB Financial reported total assets of $1.61 billion, representing an increase of $69.1 million from December 31, 2025, and $118.2 million, or 7.9 percent, from September 30, 2025. The year-over-year asset growth was primarily driven by steady organic loan generation across our commercial and real estate lines. Cash and due from banks increased by $17.4 million from the prior-year period to $102.4 million, normalizing during the quarter as funds were strategically deployed into the loan portfolio. Key balance-sheet metrics for the quarter included a loan-to-deposit ratio of 88.1 percent and a loan-to-asset ratio of 75.5 percent, both of which remained well-aligned with our target operating bands.

Total deposits at quarter end reached $1.38 billion, an increase of $120.3 million, or 9.5 percent, from the prior-year quarter, supported by a competitive community banking footprint and durable client retention efforts. Noninterest-bearing demand deposits totaled $270.0 million, accounting for 19.5 percent of the total deposit portfolio. Shareholders' equity finished the period at $144.3 million, representing an increase of $7.4 million, or 5.4 percent from the prior-year period, providing a solid foundation for ongoing organic loan growth initiatives.

During the third quarter of 2026, SB Financial repurchased approximately 6,700 shares of its common stock, reflecting a measured approach to capital allocation and ongoing evaluation of corporate priorities during the period. The Company remains committed to a prudent capital allocation strategy, supporting shareholder returns through dividends and share buybacks while preserving the financial flexibility to fund organic expansion, strategic initiatives, and capital stability.

“In summary, as we enter the final quarter of 2026, SB Financial continues to operate from a position of fundamental strength, anchored by robust capital levels, exceptional credit quality, and a durable core deposit franchise,” stated Mr. Klein.“Achieving our tenth consecutive quarter of loan expansion demonstrates the strength of our relationship-based community banking model and localized lending expertise. Meanwhile, our nonperforming assets remain near historic lows at 0.27 percent of total assets, backed by strong reserve coverage that reflects our unyielding commitment to disciplined credit administration. Positioned with a resilient deposit base, growing fee-generating business lines, and careful overhead control, we remain focused on finishing 2026 with strong momentum and driving long-term value for our shareholders.”

Loan Balances
($ in thousands, except ratios)	Sep. 2026	Jun. 2026	Mar. 2026	Dec. 2025	Sep. 2025	Annual Growth
Commercial	$	106,915		$	111,128		$	112,226		$	113,878		$	117,581		$	(10,666	)
% of Total		8.8	%		9.3	%		9.5	%		9.6	%		10.6	%		-9.1	%
Commercial RE		640,127			611,274			601,556			596,983			535,307			104,820
% of Total		52.5	%		51.4	%		50.9	%		50.6	%		48.2	%		19.6	%
Agriculture		83,804			81,341			78,569			76,514			65,150			18,654
% of Total		6.9	%		6.8	%		6.7	%		6.5	%		5.9	%		28.6	%
Residential RE		294,321			295,481			299,741			304,741			309,140			(14,819	)
% of Total		24.1	%		24.8	%		25.4	%		25.8	%		27.8	%		-4.8	%
Consumer & Other		93,622			90,335			89,043			88,475			83,367			10,255
% of Total		7.7	%		7.6	%		7.5	%		7.5	%		7.5	%		12.3	%
Total Loans	$	1,218,789		$	1,189,559		$	1,181,135		$	1,180,591		$	1,110,545		$	108,244
Total Growth Percentage							9.7	%
Deposit Balances
($ in thousands, except ratios)	Sep. 2026	Jun. 2026	Mar. 2026	Dec. 2025	Sep. 2025	Annual Growth
Non-Int DDA	$	270,029		$	258,576		$	248,239		$	254,063		$	246,725		$	23,304
% of Total		19.5	%		18.6	%		18.1	%		19.4	%		19.5	%		9.4	%
Interest DDA		205,459			206,593			215,594			202,501			194,420			11,039
% of Total		14.9	%		14.9	%		15.7	%		15.5	%		15.4	%		5.7	%
Savings		312,212			325,675			333,662			296,484			290,111			22,101
% of Total		22.6	%		23.4	%		24.3	%		22.7	%		23.0	%		7.6	%
Money Market		322,395			315,363			300,028			280,896			261,953			60,442
% of Total		23.3	%		22.7	%		21.9	%		21.5	%		20.7	%		23.1	%
Time Deposits		272,769			284,940			274,300			273,300			269,313			3,456
% of Total		19.7	%		20.5	%		20.0	%		20.9	%		21.3	%		1.3	%
Total Deposits	$	1,382,864		$	1,391,147		$	1,371,823		$	1,307,244		$	1,262,522		$	120,342
Total Growth Percentage							9.5	%

Asset Quality

As of September 30, 2026, SB Financial continued to focus on maintaining strong asset quality metrics. Nonperforming assets totaled $4.3 million, representing 0.27 percent of total assets, an improvement of $574,000 compared to $4.9 million, or 0.32 percent of total assets, in the prior-year quarter, and relatively stable compared to the linked-quarter balance of $4.4 million, or 0.27 percent of total assets. Total nonaccruing loans declined significantly to $3.2 million from $4.6 million in the prior-year period, while foreclosed properties and repossessed assets stood at $1.1 million.

The allowance for credit losses remained strong at 1.34 percent of total loans, providing 508.9 percent coverage of nonperforming loans-a substantial increase from 345.4 percent in 3Q25 and consistent with 470.3 percent in the linked quarter, reflecting a conservative approach to risk management. Annualized net loan charge-offs to average loans remained exceptionally modest at less than 1 basis point, improving from 6 basis points in the linked quarter and comparable to less than 1 basis point in the prior year quarter, with net charge-offs totaling $17,000.

“Our asset quality metrics embody our commitment to disciplined risk management within a dynamic economic environment,” stated Mr. Klein.“With nonperforming assets down year-over-year and our allowance providing over 500 percent coverage of nonperforming loans, our reserve position underscores the inherent quality of our loan portfolio and the strength of our client relationships. We remain dedicated to balancing our conservative credit discipline with proactive support for high-quality loan growth across all nine of our major markets.”

Nonperforming Assets						Annual Change
($ in thousands, except ratios)	Sep. 2026	Jun. 2026	Mar. 2026	Dec. 2025	Sep. 2025
Commercial & Agriculture	$	1,054		$	1,304		$	1,359		$	2,256		$	2,243		$	(1,189	)
% of Total Com./Ag. loans		0.55	%		0.68	%		0.71	%		1.18	%		1.23	%		-53.0	%
Commercial RE		195			339			668			771			778			(583	)
% of Total CRE loans		0.03	%		0.06	%		0.11	%		0.13	%		0.15	%		-74.9	%
Residential RE		1,493			1,476			1,439			1,322			1,400			93
% of Total Res. RE loans		0.51	%		0.50	%		0.48	%		0.43	%		0.45	%		6.6	%
Consumer & Other		476			367			233			230			195			281
% of Total Con./Oth. loans		0.51	%		0.41	%		0.26	%		0.26	%		0.23	%		144.1	%
Total Nonaccruing Loans		3,218			3,486			3,699			4,579			4,616			(1,398	)
% of Total loans		0.26	%		0.29	%		0.31	%		0.39	%		0.42	%		-30.3	%
Foreclosed Assets and Other Assets		1,061			936			974			104			237			824
Total Change (%)						N/M
Total Nonperforming Assets	$	4,279		$	4,422		$	4,673		$	4,683		$	4,853		$	(574	)
% of Total assets		0.27	%		0.27	%		0.29	%		0.30	%		0.32	%		-11.83	%

Webcast and Conference Call

The Company will hold the third quarter 2026 earnings conference call and webcast on October 22, 2026, at 3:30 p.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company's website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial's common stock is listed on the NASDAQ Capital Market with the ticker symbol“SBFG”.

Forward-Looking Statements

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in which SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial's Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company's management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Investor Contact Information:

Mark A. Klein
Chairman, President and
Chief Executive Officer
...

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)			2026				2026				2026				2025				2025
ASSETS
	Cash and due from banks		$	102,427			$	138,152			$	126,293			$	71,543			$	85,025
	Interest bearing time deposits			1,715				2,455				1,965				1,140				2,025
	Available-for-sale securities			177,767				179,026				183,626				188,626				193,190
	Loans held for sale			5,391				7,438				7,203				1,761				4,736
	Loans, net of unearned income			1,218,789				1,189,559				1,181,135				1,180,591				1,110,545
	Allowance for credit losses			(16,377	)			(16,395	)			(16,388	)			(16,114	)			(15,943	)
	Premises and equipment, net			20,775				21,088				21,295				21,688				21,764
	Federal Reserve and FHLB Stock, at cost			5,674				5,502				5,463				5,610				5,466
	Foreclosed assets			1,061				936				974				104				237
	Interest receivable			5,989				5,455				5,499				5,490				5,455
	Goodwill			27,158				27,158				27,158				27,158				27,158
	Cash value of life insurance			32,469				32,354				32,401				32,208				32,004
	Mortgage servicing rights			16,204				15,953				15,728				15,254				15,347
	Other assets			15,449				11,383				12,246				10,308				9,254
			Total assets		$	1,614,491			$	1,620,064			$	1,604,598			$	1,545,367			$	1,496,263
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand		$	270,029			$	258,576			$	248,239			$	254,063			$	246,725
		Interest bearing demand			205,459				206,593				215,594				202,501				194,420
		Savings			312,212				325,675				333,662				296,484				290,111
		Money market			322,395				315,363				300,028				280,896				261,953
		Time deposits			272,769				284,940				274,300				273,300				269,313
			Total deposits			1,382,864				1,391,147				1,371,823				1,307,244				1,262,522
	Short-term borrowings			6,285				6,732				9,433				9,230				10,976
	Federal Home Loan Bank advances			22,500				22,500				27,500				35,000				35,000
	Trust preferred securities			10,310				10,310				10,310				10,310				10,310
	Subordinated debt net of issuance costs			19,775				19,763				19,751				19,739				19,726
	Interest payable			2,572				2,470				2,553				2,460				2,739
	Other liabilities			25,841				20,402				19,573				20,148				18,051
			Total liabilities			1,470,147				1,473,324				1,460,943				1,404,131				1,359,324
	Shareholders' Equity
		Common stock			61,319				61,319				61,319				61,319				61,319
		Additional paid-in capital			15,178				15,275				15,065				15,160				15,086
		Retained earnings			136,071				133,125				129,631				126,311				123,370
		Accumulated other comprehensive loss			(27,138	)			(21,854	)			(21,861	)			(21,481	)			(23,412	)
		Treasury stock			(41,086	)			(41,125	)			(40,499	)			(40,073	)			(39,424	)
			Total shareholders' equity			144,344				146,740				143,655				141,236				136,939
			Total liabilities and shareholders' equity	$	1,614,491			$	1,620,064			$	1,604,598			$	1,545,367			$	1,496,263

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		2026		2026		2026		2025		2025		2026		2025
		Loans
		Taxable		$	18,244		$	17,498		$	17,246		$	17,234		$	16,449		$	52,988		$	47,752
		Tax exempt		97		98		99		107		117		294		348
		Securities
		Taxable		1,004		1,006		1,029		1,096		1,097		3,039		3,399
		Tax exempt		36		36		36		36		35		108		108
		Other interest income		1,145		1,182		897		799		1,111		3,224		3,041
			Total interest income		20,526		19,820		19,307		19,272		18,809		59,653		54,648
	Interest expense
		Deposits		6,369		6,237		5,957		5,820		5,721		18,563		16,670
		Repurchase agreements & other		6		7		14		22		28		27		73
		Federal Home Loan Bank advances	230		234		285		370		369		749		1,097
		Trust preferred securities		146		145		144		154		162		435		483
		Subordinated debt		351		243		195		194		195		789		584
			Total interest expense		7,102		6,866		6,595		6,560		6,475		20,563		18,907
	Net interest income		13,424		12,954		12,712		12,712		12,334		39,090		35,741
		Provision for credit losses		127		299		214		198		124		640		1,108
	Net interest income after provision
	for credit losses		13,297		12,655		12,498		12,514		12,210		38,450		34,633
	Noninterest income
		Wealth management fees		954		955		941		900		912		2,850		2,635
		Customer service fees		932		917		910		892		887		2,759		2,652
		Gain on sale of mtg. loans & OMSR	1,262		1,541		978		1,272		1,328		3,781		3,743
		Mortgage loan servicing fees, net		517		383		851		199		158		1,751		1,363
		Gain on sale of non-mortgage loans	29		62		144		38		8		235		105
		Title insurance revenue		514		577		485		525		544		1,576		1,523
		Gain (loss) on sale of assets		(32)		(9)		8		-		-		(33)		-
		Other		475		561		395		(118)		407		1,431		1,378
			Total noninterest income		4,651		4,987		4,712		3,708		4,244		14,350		13,399
	Noninterest expense
		Salaries and employee benefits		7,339		7,005		6,096		6,047		6,198		20,440		19,030
		Net occupancy expense		831		802		882		822		801		2,515		2,487
		Equipment expense		1,205		1,226		1,244		1,154		1,188		3,675		3,381
		Data processing fees		1,124		693		726		790		723		2,543		3,050
		Professional fees		854		844		1,016		805		863		2,714		2,789
		Marketing expense		358		255		277		122		174		890		529
		Telephone and communication expense		119		126		118		124		123		363		387
		Postage and delivery expense		149		146		187		140		157		482		401
		State, local and other taxes		311		221		288		331		268		820		760
		Employee expense		214		177		184		158		255		575		605
		Other expenses		653		642		911		746		748		2,206		2,341
			Total noninterest expense		13,157		12,137		11,929		11,239		11,498		37,223		35,760
	Income before income tax expense		4,791		5,505		5,281		4,983		4,956		15,577		12,272
		Income tax expense		845		1,008		985		1,065		910		2,838		2,216
	Net income		$	3,946		$	4,497		$	4,296		$	3,918		$	4,046		$	12,739		$	10,056
	Common share data:
		Basic earnings per common share		$	0.64		$	0.72		$	0.69		$	0.63		$	0.64		$	2.05		$	1.57
		Diluted earnings per common share	$	0.63		$	0.72		$	0.69		$	0.63		$	0.64		$	2.04		$	1.56
	Average shares outstanding (in thousands):
		Basic:		6,194		6,205		6,230		6,252		6,297		6,210		6,408
		Diluted:		6,218		6,220		6,243		6,266		6,311		6,230		6,427

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			2026				2026				2026				2025				2025				2026				2025
	Net interest income		$	13,424			$	12,954			$	12,712			$	12,712			$	12,334			$	39,090			$	35,741
	Tax-equivalent adjustment			35				36				36				38				40				107				121
	Tax-equivalent net interest income			13,459				12,990				12,748				12,750				12,374				39,197				35,862
	Provision for credit loss			127				299				214				198				124				640				1,108
	Noninterest income			4,651				4,987				4,712				3,708				4,244				14,350				13,399
	Total operating revenue			18,075				17,941				17,424				16,420				16,578				53,440				49,140
	Noninterest expense			13,157				12,137				11,929				11,239				11,498				37,223				35,760
	Pre-tax pre-provision income			4,918				5,804				5,495				5,181				5,080				16,217				13,380
	Net income			3,946				4,497				4,296				3,918				4,046				12,739				10,056
	PER SHARE INFORMATION:
	Basic earnings per share (EPS)			0.64				0.72				0.69				0.63				0.64				2.05				1.57
	Diluted earnings per share			0.63				0.72				0.69				0.63				0.64				2.04				1.56
	Common dividends			0.160				0.160				0.155				0.155				0.150				0.475				0.450
	Book value per common share			23.30				23.70				23.10				22.65				21.85				23.30				21.85
	Tangible book value per common share (TBV)			18.65				19.04				18.45				18.00				17.21				18.65				17.21
	Market price per common share			28.61				25.27				21.00				22.27				19.29				28.61				19.29
	Market price to TBV			153.4	%			132.7	%			113.8	%			123.7	%			112.1	%			153.4	%			112.1	%
	Market price to trailing 12 month EPS			10.7				9.4				8.2				10.1				9.1				10.7				9.1
	PERFORMANCE RATIOS:
	Return on average assets (ROAA)			0.96	%			1.12	%			1.10	%			1.01	%			1.07	%			1.06	%			0.90	%
	Pre-tax pre-provision ROAA			1.20	%			1.45	%			1.41	%			1.34	%			1.34	%			1.44	%			1.29	%
	Return on average equity (ROE)			10.34	%			12.44	%			12.04	%			11.08	%			12.08	%			11.51	%			10.15	%
	Return on average tangible equity			12.77	%			15.53	%			15.06	%			13.97	%			15.47	%			14.31	%			12.89	%
	Efficiency ratio			72.46	%			67.32	%			68.12	%			68.09	%			69.00	%			69.32	%			72.41	%
	Earning asset yield			5.35	%			5.20	%			5.29	%			5.32	%			5.31	%			5.31	%			5.27	%
	Cost of interest bearing liabilities			2.38	%			2.31	%			2.31	%			2.34	%			2.33	%			2.35	%			2.33	%
	Net interest margin			3.50	%			3.43	%			3.48	%			3.51	%			3.48	%			3.47	%			3.44	%
	Tax equivalent effect			0.01	%			0.01	%			0.01	%			0.01	%			0.02	%			0.02	%			0.02	%
	Net interest margin, tax equivalent			3.51	%			3.44	%			3.49	%			3.52	%			3.50	%			3.49	%			3.46	%
	Non interest income/Average assets			1.13	%			1.24	%			1.21	%			0.96	%			1.12	%			1.19	%			1.20	%
	Non interest expense/Average assets			3.21	%			3.03	%			3.06	%			2.90	%			3.04	%			3.10	%			3.21	%
	Net noninterest expense/Average assets			-2.07	%			-1.78	%			-1.85	%			-1.94	%			-1.92	%			-1.90	%			-2.01	%
	ASSET QUALITY RATIOS:
	Gross charge-offs			133				196				33				133				11				362				146
	Recoveries			116				3				8				3				9				126				14
	Net charge-offs			17				193				25				130				2				236				132
	Nonperforming loans/Total loans			0.26	%			0.29	%			0.31	%			0.39	%			0.42	%			0.26	%			0.42	%
	Nonperforming assets/Loans & OREO			0.35	%			0.37	%			0.40	%			0.40	%			0.44	%			0.35	%			0.44	%
	Nonperforming assets/Total assets			0.27	%			0.27	%			0.29	%			0.30	%			0.32	%			0.27	%			0.32	%
	Allowance for credit loss/Nonperforming loans			508.92	%			470.31	%			443.04	%			351.91	%			345.39	%			508.92	%			345.39	%
	Allowance for credit loss/Total loans			1.34	%			1.38	%			1.39	%			1.36	%			1.44	%			1.34	%			1.44	%
	Net loan charge-offs/Average loans (ann.)			0.01	%			0.06	%			0.01	%			0.04	%			0.00	%			0.03	%			0.02	%
	CAPITAL & LIQUIDITY RATIOS:
	Loans/ Deposits			88.14	%			85.51	%			86.10	%			90.31	%			87.96	%			88.14	%			87.96	%
	Equity/ Assets			8.94	%			9.06	%			8.95	%			9.14	%			9.15	%			8.94	%			9.15	%
	Tangible equity/Tangible assets			7.29	%			7.41	%			7.28	%			7.40	%			7.35	%			7.29	%			7.35	%
	Common equity tier 1 ratio (Bank)			12.09	%			12.37	%			12.11	%			11.78	%			12.48	%			12.09	%			12.48	%
	END OF PERIOD BALANCES
	Total assets			1,614,491				1,620,064				1,604,598				1,545,367				1,496,263				1,614,491				1,496,263
	Total loans			1,218,789				1,189,559				1,181,135				1,180,591				1,110,545				1,218,789				1,110,545
	Deposits			1,382,864				1,391,147				1,371,823				1,307,244				1,262,522				1,382,864				1,262,522
	Shareholders equity			144,344				146,740				143,655				141,236				136,939				144,344				136,939
	Goodwill and intangibles			28,811				28,870				28,929				28,989				29,048				28,811				29,048
	Tangible equity			115,533				117,870				114,726				112,247				107,891				115,533				107,891
	Mortgage servicing portfolio			1,517,593				1,504,657				1,482,052				1,479,982				1,470,360				1,517,593				1,470,360
	Wealth/Brokerage assets under care			578,292				585,919				556,930				566,004				563,036				578,292				563,036
	Total assets under care			3,710,376				3,710,640				3,643,580				3,591,353				3,529,659				3,710,376				3,529,659
	Full-time equivalent employees			266				258				258				252				253				266				253
	Period end common shares outstanding			6,196				6,191				6,219				6,236				6,268				6,196				6,268
	Market capitalization (all)			177,274				156,436				130,597				138,883				120,907				177,274				120,907
	AVERAGE BALANCES
	Total assets			1,628,195				1,608,355				1,579,781				1,536,215				1,502,389				1,606,315				1,487,251
	Total earning assets			1,521,057				1,521,057				1,479,667				1,436,207				1,404,330				1,502,326				1,387,258
	Total loans			1,217,995				1,193,207				1,186,225				1,158,567				1,104,175				1,199,258				1,091,670
	Deposits			1,393,085				1,381,439				1,347,351				1,299,512				1,270,783				1,373,977				1,256,732
	Shareholders equity			151,417				145,034				144,659				140,315				132,866				147,936				132,426
	Goodwill and intangibles			28,840				28,899				28,959				29,027				29,077				28,899				28,140
	Tangible equity			122,577				116,135				115,700				111,288				103,789				119,037				104,286
	Average basic shares outstanding			6,194				6,205				6,230				6,252				6,297				6,210				6,408
	Average diluted shares outstanding			6,218				6,220				6,243				6,266				6,311				6,230				6,427

SB FINANCIAL GROUP, INC.
	Rate Volume Analysis - (Unaudited)
	For the Three & Nine Months Ended Sep. 30, 2026 and 2025
	($ in thousands)		Three Months Ended Sep. 30, 2026		Three Months Ended Sep. 30, 2025
			Average		Average		Average		Average
Assets		Balance	Interest	Rate		Balance	Interest	Rate
	Taxable securities		$	177,850		$	1,004	2.24	%		$	193,893		$	1,097	2.24	%
	Overnight Cash			120,444			1,145	3.77	%			100,164			1,111	4.40	%
	Nontaxable securities			4,768			36	3.00	%			6,098			35	2.28	%
	Loans, net			1,217,995			18,341	5.97	%			1,104,175			16,566	5.95	%
	Total earning assets			1,521,057			20,526	5.35	%			1,404,330			18,809	5.31	%
	Cash on hand			5,415						5,044
	Allowance for loan losses			(16,515	)					(15,750	)
	Premises and equipment			21,003						21,854
	Other assets			97,235						86,911
	Total assets		$	1,628,195					$	1,502,389
Liabilities
	Savings, MMDA and interest bearing demand	$	845,195		$	4,121	1.93	%		$	753,639		$	3,442	1.81	%
	Time deposits			277,406			2,248	3.22	%			267,984			2,279	3.37	%
	Repurchase agreements & other			7,689			6	0.31	%			14,015			28	0.79	%
	Advances from Federal Home Loan Bank			22,500			230	4.06	%			35,000			369	4.18	%
	Trust preferred securities			10,310			146	5.62	%			10,310			162	6.23	%
	Subordinated debt			19,767			351	7.04	%			19,719			195	3.92	%
	Total interest bearing liabilities			1,182,867			7,102	2.38	%			1,100,667			6,475	2.33	%
	Non interest bearing demand			270,484			-				249,160			-
	Total funding			1,453,351			1.94	%			1,349,827			1.90	%
	Other liabilities			23,427						19,696
	Total liabilities			1,476,778						1,369,523
	Equity			151,417						132,866
	Total liabilities and equity		$	1,628,195					$	1,502,389
	Net interest income			$	13,424				$	12,334
	Net interest income as a percent of average interest-earning assets - GAAP measure				3.50	%				3.48	%
	Net interest income as a percent of average interest-earning assets - non GAAP	3.51	%				3.50	%
	- Computed on a fully tax equivalent (FTE) basis
			Nine Months Ended Sep. 30, 2026		Nine Months Ended Sep. 30, 2025
			Average		Average		Average		Average
Assets		Balance	Interest	Rate		Balance	Interest	Rate
	Taxable securities		$	182,870		$	3,039	2.22	%		$	198,463		$	3,399	2.29	%
	Overnight Cash			115,431			3,224	3.73	%			90,829			3,041	4.48	%
	Nontaxable securities			4,767			108	3.03	%			6,296			108	2.29	%
	Loans, net			1,199,258			53,282	5.94	%			1,091,670			48,100	5.89	%
	Total earning assets			1,502,326			59,653	5.31	%			1,387,258			54,648	5.27	%
	Cash on hand			5,429						4,880
	Allowance for loan losses			(16,398	)					(15,492	)
	Premises and equipment			21,245						21,555
	Other assets			93,713						89,050
	Total assets		$	1,606,315					$	1,487,251
Liabilities
	Savings, MMDA and interest bearing demand	$	831,888		$	11,767	1.89	%		$	734,938		$	9,624	1.75	%
	Time deposits			276,916			6,796	3.28	%			273,508			7,046	3.44	%
	Repurchase agreements & Other			8,341			27	0.43	%			12,549			73	0.78	%
	Advances from Federal Home Loan Bank			24,533			749	4.08	%			35,015			1,097	4.19	%
	Trust preferred securities			10,310			435	5.64	%			10,310			483	6.26	%
	Subordinated debt			19,755			789	5.34	%			19,707			584	3.96	%
	Total interest bearing liabilities			1,171,743			20,563	2.35	%			1,086,027			18,907	2.33	%
	Non interest bearing demand			265,173			1.91	%			248,286			1.89	%
	Total funding			1,436,916						1,334,313
	Other liabilities			21,463						20,512
	Total liabilities			1,458,379						1,354,825
	Equity			147,936						132,426
	Total liabilities and equity		$	1,606,315					$	1,487,251
	Net interest income			$	39,090				$	35,741
	Net interest income as a percent of average interest-earning assets - GAAP measure				3.48	%				3.44	%
	Net interest income as a percent of average interest-earning assets - non GAAP	3.49	%				3.46	%
	- 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, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Total Operating Revenue		$	18,075			$	16,578			$	53,440			$	49,140
Adjustment to (deduct)/add OMSR recapture/impairment *		(43	)			301				(398	)			131
Adjusted Total Operating Revenue			18,032				16,879				53,042				49,271
Total Operating Expense			13,157				11,498				37,223				35,760
Adjustment for merger expenses			-				-				-				(726	)
Adjusted Total Operating Expense			13,157				11,498				37,223				35,034
Income before Income Taxes			4,791				4,956				15,577				12,272
Adjustment for OMSR*/Merger Expenses			(43	)			301				(398	)			857
Adjusted Income before Income Taxes			4,748				5,257				15,179				13,129
Provision for Income Taxes			845				910				2,838				2,216
Adjustment for OMSR/Merger Expenses **			(9	)			63				(84	)			180
Adjusted Provision for Income Taxes			836				973				2,754				2,396
Net Income			3,946				4,046				12,739				10,056
Adjustment for OMSR*/Merger Expenses			(34	)			238				(314	)			677
Adjusted Net Income			3,912				4,284				12,425				10,733
Diluted Earnings per Share			0.63				0.64				2.04				1.56
Adjustment for OMSR*/Merger Expenses			(0.01	)			0.04				(0.05	)			0.11
Adjusted Diluted Earnings per Share		$	0.63			$	0.68			$	1.99			$	1.67
Return on Average Assets			0.96	%			1.07	%			1.06	%			0.90	%
Adjustment for OMSR*/Merger Expenses			(0.00	)			0.06	%			-0.03	%			0.06	%
Adjusted Return on Average Assets			0.95	%			1.13	%			1.03	%			0.96	%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate

MENAFN22102026004107003653ID1111850402