DEFIANCE, Ohio, July 24, 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 second quarter ended June 30, 2025.

Second Quarter 2025 Highlights compared to the second quarter of the prior year include:

GAAP net income and Diluted Earnings per Share ("DEPS") were $3.9 million, or $0.60 per DEPS, well above the $3.1 million, or $0.47 per DEPS in the prior year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights ("OMSR"), was $3.7 million, up 20.9 percent compared to $3.1 million for the prior-year period. Adjusted DEPS of $0.58 was also up 25.4 percent, from the prior year.
Net interest income of $12.1 million increased by 25.6 percent from $9.7 million reported in the prior-year quarter.
Loan growth of $89.3 million, or 8.9 percent from the prior-year quarter, with growth from the linked quarter of $6.4 million, or 0.6 percent. This marks five consecutive quarters of sequential loan growth. Loan growth adjusted for the Marblehead acquisition, was $71.3 and $7.0 million, from the prior year and linked quarters, respectively.
Deposit growth of $134.6 million, or 12.1 percent from the prior-year quarter, with a decline from the linked quarter of $21.4 million, or 1.7 percent. Adjusted for the Marblehead acquisition, total deposits increased $83.8 million from the prior year.
Tangible book value ("TBV") per share ended the quarter at $16.44 up $1.18 per share or 7.7 percent from the prior year quarter.

Six months ended June 30, 2025 Highlights compared to the same period of the prior year:

Mortgage banking revenue totaled $3.6 million for the first half of 2025, reflecting an increase of 6.9 percent compared to $3.4 million for the first half of 2024.
Net interest income rose to $23.4 million, representing a year-over-year improvement of 24.3 percent from $18.8 million for the six months ending June 30,2024.
Total interest expense came in at $12.4 million, up slightly by 2.6 percent from $12.1 million in the prior year period.

Earnings Highlights	Three Months Ended								Six Months Ended
($ in thousands, except per share & ratios)	Jun. 2025			Jun. 2024			% Change		Jun. 2025			Jun. 2024			% Change
Operating revenue	$	17,176		$	14,045		22.3	%	$	32,562		$	27,176		19.8	%
Interest income		18,467			15,654		18.0	%		35,840			30,954		15.8	%
Interest expense		6,339			5,995		5.7	%		12,432			12,115		2.6	%
Net interest income		12,128			9,659		25.6	%		23,408			18,839		24.3	%
Provision for credit losses		597			-		N/M			984			-		N/M
Noninterest income		5,048			4,386		15.1	%		9,154			8,337		9.8	%
Noninterest expense		11,852			10,671		11.1	%		24,262			20,953		15.8	%
Net income		3,852			3,113		23.7	%		6,010			5,481		9.7	%
Adjusted Earnings per diluted share		0.58			0.46		26.1	%		1.00			0.79		26.6	%
Earnings per diluted share		0.60			0.47		27.7	%		0.93			0.82		13.4	%
Adjusted Return on Avg. Assets		1.00	%		0.92	%	8.7	%		0.85	%		0.81	%	4.9	%
Return on average assets		1.03	%		0.93	%	10.8	%		0.82	%		0.82	%	0.0	%
Adjusted Return on Avg. Equity		11.29	%		10.12	%	11.5	%		10.54	%		8.45	%	24.7	%
Return on average equity		11.67	%		10.22	%	14.2	%		9.19	%		9.02	%	1.9	%

"Our second quarter results highlight the execution of our growth strategy and disciplined operational management, and their positive impact on our results," said Mark A. Klein, Chairman, President, and CEO. "Net income for the quarter was $3.9 million, a 23.7 percent increase from the prior-year quarter, with the GAAP DEPS of $0.60 up 27.7 percent from the prior year. Our solid second quarter performance reflects the first full quarter of contribution from the Marblehead acquisition which strengthened our liquidity position and further expanded our market presence in Northern Ohio."

Net interest income for the quarter grew by 25.6 percent to $12.1 million compared to the previous year, driven by continued strong loan growth and stabilization of funding costs. Total loans increased by $89.3 million, compared to the prior year, and by $6.4 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $71.3. Deposits rose $134.6 million, or 12.1 percent, to $1.25 billion, reflecting the impact of the acquisition and the strength of our new and existing client relationships. Adjusted for the acquisition, deposits increased $83.8 million from the prior year.

RESULTS OF OPERATIONS

In the second quarter of 2025, total operating revenue increased to $17.2 million, a 22.3 percent rise from $14.0 million in the prior year and an 11.6 percent increase from the linked quarter, driven by continued growth in both net interest income and noninterest income. Net interest income reached $12.1 million, a strong 25.6 percent year-over-year increase, reflecting higher interest income on loans, which rose by $2.2 million to $16.2 million. Deposit costs increased by 7.5 percent to $5.6 million but were partially offset by decreases in interest expense on other funding sources, resulting in a 5.7 percent increase in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 36 basis points year-over-year to 3.48 percent, reflecting the continued strength of our interest-earning assets and stabilization of funding costs. Noninterest income for the quarter increased by 15.1 percent year-over-year to $5.0 million due primarily to improvements in gain on sale of mortgage loans and title insurance as well as modest increases in wealth management, mortgage loan servicing and customer service fees. These fees were partially offset by decreases in gain on sales of non-mortgage loans. "We continue to focus on maintaining a balanced growth strategy and diversified revenue stream coupled with effective cost management," said Mr. Klein.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $2.2 million, up $317,000 from the prior-year quarter. Loan servicing fees added $904,000 to revenue, reflecting an increase of $42,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2025 was a positive $159,000 compared to a positive $38,000 in the second quarter of 2024.

Mortgage Banking
($ in thousands)	Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Prior Year Growth
Mortgage originations	$	97,901		$	39,775		$	72,534		$	70,715		$	75,110		$	22,791
Mortgage sales		74,313			39,279			62,301			61,271			55,835			18,478
Mortgage servicing portfolio		1,456,374			1,432,184			1,427,318			1,406,273			1,389,805			66,569
Mortgage servicing rights		15,896			14,965			14,868			14,357			14,548			1,348


Revenue
Loan servicing fees		904			894			886			874			862			42
OMSR amortization		(469	)		(294	)		(358	)		(370	)		(335	)		(134	)
Net administrative fees		435			600			528			504			527			(92	)
OMSR valuation adjustment		159			11			288			(465	)		38			121
Net loan servicing fees		594			611			816			39			565			29
Gain on sale of mortgages		1,565			849			1,196			1,311			1,277			288
Mortgage banking revenue, net	$	2,159		$	1,460		$	2,012		$	1,350		$	1,842		$	317

Noninterest Income and Noninterest Expense

"Noninterest income for the second quarter of 2025 totaled $5.0 million, up $661,000 or 15.1 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $289,000 year over year, and title insurance revenue added $176,000, reflecting our revenue diversification strategy," Mr. Klein noted.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Prior Year Growth
Noninterest Income (NII)	$	5,048		$	4,107		$	4,557		$	4,123		$	4,386		$	662
NII / Total Revenue		29.4	%		26.7	%		29.5	%		28.8	%		31.5	%		-2.1	%
NII / Average Assets		1.4	%		1.1	%		1.3	%		1.2	%		1.3	%		0.1	%
Total Revenue Growth		22.3	%		17.2	%		2.2	%		4.5	%		-0.6	%		22.9	%

Noninterest Expense (NIE)	$	11,852		$	12,410		$	11,003		$	11,003		$	10,671		$	1,181
Efficiency Ratio		68.9	%		80.0	%		71.1	%		76.8	%		75.9	%		-7.0	%
NIE / Average Assets		3.2	%		3.4	%		3.2	%		3.2	%		3.2	%		0.0	%
Net Noninterest Expense/Avg. Assets		-1.8	%		-2.3	%		-1.8	%		-2.0	%		-1.9	%		0.1	%
Total Expense Growth		11.1	%		20.7	%		6.1	%		5.0	%		3.2	%		7.9	%

Noninterest expense for the second quarter of 2025 was $11.9 million, up 11.1 percent from the prior year, driven primarily by increased salary and benefit expenses, data processing and professional fees.

"Our efficiency ratio in the second quarter of 2025 was 68.9 percent marking a solid improvement compared to the linked quarter and the prior year," stated Mr. Klein.

Balance Sheet

As of June 30, 2025, SB Financial reported total assets of $1.49 billion, down slightly from the linked quarter but higher than the previous year. Year-over-year growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $89.3 million or 8.9 percent increase year over year. Loan growth also included $18.0 million in loans added with the completion of the acquisition. Cash increased by $57.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.

Total deposits increased to $1.25 billion, growing $134.6 million or 12.1 percent year over year, including $50.9 million in low-cost deposits from the acquisition and $83.8 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 $133.6 million, representing an $8.2 million increase from the prior year. This growth reflects management's ongoing commitment to enhancing shareholder value through solid earnings performance.

During the second quarter, SB Financial repurchased 124,000 shares, more than in the previous quarters as the Company made opportunistic purchases below our target range. This reflects the Company's commitment to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth.

"As we progress through the second half of 2025, our balance sheet strength and strategic management of resources form a foundation to support our long-term strategic growth ambitions," said Mr. Klein. "Even in the current uncertain rate environment, we achieved our fifth consecutive quarter of sequential loan growth, with balances increasing by $89.3 million from the previous year, which included $71.3 million of organic loan growth. This performance underscores the strength of our deep client relationships and our sustained competitiveness in local markets as we pursue an innovative, "hybrid" office operating strategy. Our strong asset quality, supported by top-decile coverage ratios, remains a key component of our financial stability, which will enable us to take advantage of emerging opportunities while continuing to pursue operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economy evolves and stabilizes."

Loan Balances
($ in thousands, except ratios)	Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Annual Growth
Commercial	$	118,984		$	125,878		$	124,764		$	123,821		$	123,287		$	(4,303	)
% of Total		10.9	%		11.6	%		11.9	%		12.0	%		12.3	%		-3.5	%
Commercial RE		525,671			509,518			479,573			459,449			434,967			90,704
% of Total		48.0	%		46.8	%		45.8	%		44.6	%		43.3	%		20.9	%
Agriculture		60,924			61,443			64,680			64,887			64,329			(3,405	)
% of Total		5.6	%		5.6	%		6.2	%		6.3	%		6.4	%		-5.3	%
Residential RE		310,126			319,307			308,378			314,010			316,233			(6,107	)
% of Total		28.3	%		29.3	%		29.5	%		30.5	%		31.5	%		-1.9	%
Consumer & Other		79,014			72,128			69,340			67,788			66,574			12,440
% of Total		7.2	%		6.6	%		6.6	%		6.6	%		6.6	%		18.7	%
Total Loans	$	1,094,719		$	1,088,274		$	1,046,735		$	1,029,955		$	1,005,390		$	89,329
Total Growth Percentage																	8.9	%


Deposit Balances
($ in thousands, except ratios)	Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Annual Growth
Non-Int DDA	$	241,245		$	240,446		$	232,155		$	222,425		$	208,244		$	33,001
% of Total		19.3	%		18.9	%		20.1	%		19.2	%		18.7	%		15.8	%
Interest DDA		205,581			208,583			201,085			202,097			190,857			14,724
% of Total		16.4	%		16.4	%		17.4	%		17.4	%		17.1	%		7.7	%
Savings		282,311			285,902			237,987			241,761			231,855			50,456
% of Total		22.6	%		22.5	%		20.6	%		20.8	%		20.8	%		21.8	%
Money Market		249,536			257,013			222,161			228,182			225,650			23,886
% of Total		20.0	%		20.2	%		19.3	%		19.7	%		20.2	%		10.6	%
Time Deposits		271,149			279,276			259,217			265,068			258,582			12,567
% of Total		21.7	%		22.0	%		22.5	%		22.9	%		23.2	%		4.9	%
Total Deposits	$	1,249,822		$	1,271,220		$	1,152,605		$	1,159,533		$	1,115,188		$	134,634
Total Growth Percentage																	12.1	%

Asset Quality

As of June 30, 2025, SB Financial continued to focus on strong asset quality metrics. Nonperforming assets totaled $6.2 million, representing 0.42 percent of total assets, an increase of $944,000 compared to $5.2 million or 0.39 percent of total assets reported in the prior year, but relatively stable compared to the linked quarter balance of $6.1 million, representing 0.41 percent of total assets.

The allowance for credit losses remained strong at 1.43 percent of total loans, providing 265.0 percent coverage of nonperforming 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 2 basis points, declining from 3 basis points in the linked quarter but up from the 1 basis point net recoveries recorded in the prior year. These metrics reflect disciplined credit practices and effective collateral management.

"Our asset quality metrics embody our approach and commitment to disciplined risk management within a dynamic economic environment," stated Mr. Klein. "While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio and the strength of our lending relationships. We are committed to balancing our conservative approach in managing credit risk with the need to effectively manage our growth to enhance shareholder returns."

Nonperforming Assets																Annual Change
($ in thousands, except ratios)	Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Jun. 2024			Annual Change
Commercial & Agriculture	$	3,306		$	3,418		$	2,927		$	2,899		$	2,781		$	525
% of Total Com./Ag. loans		1.84	%		1.82	%		1.55	%		1.54	%		1.48	%		18.9	%
Commercial RE		816			798			807			813			475			341
% of Total CRE loans		0.16	%		0.16	%		0.17	%		0.18	%		0.11	%		71.8	%
Residential RE		1,577			1,608			1,539			1,536			1,247			330
% of Total Res. RE loans		0.51	%		0.50	%		0.50	%		0.49	%		0.39	%		26.5	%
Consumer & Other		205			227			243			270			231			(26	)
% of Total Con./Oth. loans		0.26	%		0.31	%		0.35	%		0.40	%		0.35	%		-11.3	%
Total Nonaccruing Loans		5,904			6,051			5,516			5,518			4,734			1,170
% of Total loans		0.54	%		0.56	%		0.53	%		0.54	%		0.47	%		24.7	%
Foreclosed Assets and Other Assets		284			73			-			-			510			(226	)
Total Change (%)																	-44.3	%
Total Nonperforming Assets	$	6,188		$	6,124		$	5,516		$	5,518		$	5,244		$	944
% of Total assets		0.42	%		0.41	%		0.40	%		0.40	%		0.39	%		18.00	%

Webcast and Conference Call

The Company will hold the second quarter 2025 earnings conference call and webcast on July 25, 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 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 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 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 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

Mark.Klein@YourStateBank.com

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

		SB FINANCIAL GROUP, INC.
		CONSOLIDATED BALANCE SHEETS - (Unaudited)

				June			March			December			September			June
			($ in thousands)		2025			2025			2024			2024			2024

ASSETS
	Cash and due from banks			$	79,463		$	105,145		$	25,928		$	49,348		$	21,983
	Interest bearing time deposits				1,565			1,565			1,565			1,706			2,417
	Available-for-sale securities				195,955			199,721			201,587			211,511			207,856
	Loans held for sale				12,774			4,286			6,770			8,927			7,864
	Loans, net of unearned income				1,094,719			1,088,274			1,046,735			1,029,955			1,005,390
	Allowance for credit losses				(15,645	)		(15,391	)		(15,096	)		(15,278	)		(15,612	)
	Premises and equipment, net				21,857			21,875			20,456			20,715			20,860
	Federal Reserve and FHLB Stock, at cost				5,466			5,340			5,223			5,223			5,204
	Foreclosed assets				284			73			-			-			510
	Interest receivable				5,299			5,072			4,908			4,842			4,818
	Goodwill				27,158			27,158			23,239			23,239			23,239
	Cash value of life insurance				31,060			30,871			30,685			30,488			30,294
	Mortgage servicing rights				15,458			14,965			14,868			14,357			14,548
	Other assets				10,888			12,048			12,649			8,916			12,815

			Total assets	$	1,486,301		$	1,501,002		$	1,379,517		$	1,393,949		$	1,342,186



LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand		$	241,245		$	240,446		$	232,155		$	222,425		$	208,244
		Interest bearing demand			205,581			208,583			201,085			202,097			190,857
		Savings			282,311			285,902			237,987			241,761			231,855
		Money market			249,536			257,013			222,161			228,182			225,650
		Time deposits			271,149			279,276			259,217			265,068			258,582

			Total deposits		1,249,822			1,271,220			1,152,605			1,159,533			1,115,188

	Short-term borrowings				15,640			11,058			10,585			15,240			15,178
	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				19,715			19,702			19,690			19,678			19,666
	Interest payable				2,258			2,634			2,351			3,374			2,944
	Other liabilities				19,908			19,552			21,468			17,973			18,421

			Total liabilities		1,352,653			1,369,476			1,252,009			1,261,108			1,216,707

	Shareholders' Equity
		Common stock			61,319			61,319			61,319			61,319			61,319
		Additional paid-in capital			15,139			14,955			15,194			15,090			15,195
		Retained earnings			120,273			117,397			116,186			113,515			112,104
		Accumulated other comprehensive loss			(25,492	)		(26,872	)		(30,234	)		(24,870	)		(31,801	)
		Treasury stock			(37,591	)		(35,273	)		(34,957	)		(32,213	)		(31,338	)

			Total shareholders' equity		133,648			131,526			127,508			132,841			125,479

			Total liabilities and shareholders' equity	$	1,486,301		$	1,501,002		$	1,379,517		$	1,393,949		$	1,342,186

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

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

		June		March		December			September		June		June		June
Interest income		2025		2025			2024		2024			2024	2025		2024
	Loans
	Taxable	$	16,059	$	15,244	$	14,920		$	14,513	$	13,883	$	31,303	$	27,430
	Tax exempt		116		115		122			127		124		231		247
	Securities
	Taxable		1,133		1,169		1,178			1,192		1,226		2,302		2,500
	Tax exempt		35		38		35			37		37		73		74
	Other interest income		1,124		806		592			679		384		1,930		703
	Total interest income		18,467		17,372		16,847			16,548		15,654		35,839		30,954

Interest expense
	Deposits		5,597		5,352		5,169			5,568		5,208		10,949		10,298
	Repurchase agreements & other		21		24		41			43		36		45		70
	Federal Home Loan Bank advances		366		362		369			369		370		728		983
	Trust preferred securities		161		160		177			187		187		321		375
	Subordinated debt		194		195		194			195		194		389		389
	Total interest expense		6,339		6,093		5,950			6,362		5,995		12,432		12,115


Net interest income			12,128		11,279		10,897			10,186		9,659		23,407		18,839

	Provision for credit losses		597		387		(76	)		200		-		984		-

Net interest income after provision
for loan losses			11,531		10,892		10,973			9,986		9,659		22,423		18,839

Noninterest income
	Wealth management fees		859		864		916			882		848		1,723		1,713
	Customer service fees		886		879		842			870		875		1,765		1,755
	Gain on sale of mtg. loans & OMSR		1,566		849		1,196			1,311		1,277		2,415		2,058
	Mortgage loan servicing fees, net		594		611		816			39		565		1,205		1,328
	Gain on sale of non-mortgage loans		82		15		10			20		105		97		115
	Title insurance revenue		582		397		478			485		406		979		672
	Net gain on sales of securities		-		-		-			-		-		-		-
	Gain (loss) on sale of assets		-		-		-			200		-		-		-
	Other		479		492		299			316		310		971		696
	Total noninterest income		5,048		4,107		4,557			4,123		4,386		9,155		8,337

Noninterest expense
	Salaries and employee benefits		6,595		6,237		6,185			6,057		6,009		12,832		11,361
	Net occupancy expense		793		893		702			706		707		1,686		1,476
	Equipment expense		1,121		1,072		1,127			1,069		1,060		2,193		2,137
	Data processing fees		888		1,439		821			758		727		2,327		1,496
	Professional fees		892		1,034		895			659		615		1,926		1,373
	Marketing expense		190		165		207			241		176		355		373
	Telephone and communication expense		125		139		136			128		156		264		261
	Postage and delivery expense		107		137		116			145		89		244		186
	State, local and other taxes		268		224		224			208		230		492		475
	Employee expense		176		174		168			228		159		350		337
	Other expenses		697		896		422			804		743		1,593		1,478
	Total noninterest expense		11,852		12,410		11,003			11,003		10,671		24,262		20,953


Income before income tax expense			4,727		2,589		4,527			3,106		3,374		7,316		6,223
	Income tax expense		875		431		892			752		261		1,306		742

Net income		$	3,852	$	2,158	$	3,635		$	2,354	$	3,113	$	6,010	$	5,481

Common share data:
	Basic earnings per common share	$	0.60	$	0.33	$	0.55		$	0.35	$	0.47	$	0.93	$	0.82
	Diluted earnings per common share	$	0.60	$	0.33	$	0.55		$	0.35	$	0.47	$	0.93	$	0.82

Average shares outstanding (in thousands):
	Basic:		6,448		6,481		6,575			6,660		6,692		6,464		6,703
	Diluted:		6,459		6,502		6,599			6,675		6,700		6,483		6,715

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

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

	June			March			December			September			June			June			June
SUMMARY OF OPERATIONS		2025			2025			2024			2024			2024			2025			2024

Net interest income	$	12,128		$	11,279		$	10,897		$	10,186		$	9,659		$	23,407		$	18,839
Tax-equivalent adjustment		40			41			42			44			43			81			85
Tax-equivalent net interest income		12,168			11,320			10,939			10,230			9,702			23,488			18,924
Provision for credit loss		597			387			(76	)		200			-			984			-
Noninterest income		5,048			4,107			4,557			4,123			4,386			9,155			8,337
Total operating revenue		17,176			15,386			15,454			14,309			14,045			32,562			27,176
Noninterest expense		11,852			12,410			11,003			11,003			10,671			24,262			20,953
Pre-tax pre-provision income		5,324			2,976			4,451			3,306			3,374			8,300			6,223
Net income		3,852			2,158			3,635			2,354			3,113			6,010			5,481

PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.60			0.33			0.55			0.35			0.47			0.93			0.82
Diluted earnings per share		0.60			0.33			0.55			0.35			0.47			0.93			0.82
Common dividends		0.150			0.145			0.145			0.140			0.140			0.295			0.275
Book value per common share		21.02			20.29			19.64			20.05			18.80			21.02			18.80
Tangible book value per common share (TBV)		16.44			15.79			16.00			16.49			15.26			16.44			15.26
Market price per common share		19.10			20.82			20.91			20.56			14.00			19.10			14.00
Market price to TBV		116.2	%		131.8	%		130.7	%		124.7	%		91.8	%		116.2	%		0.92
Market price to trailing 12 month EPS		10.4			12.2			12.1			11.8			7.9			10.4			7.9

PERFORMANCE RATIOS:
Return on average assets (ROAA)		1.03	%		0.60	%		1.04	%		0.68	%		0.93	%		0.82	%		0.82	%
Pre-tax pre-provision ROAA		1.42	%		0.83	%		1.27	%		0.96	%		1.01	%		0.88	%		1.00	%
Return on average equity (ROE)		11.67	%		6.63	%		11.07	%		7.28	%		10.22	%		9.19	%		9.02	%
Return on average tangible equity		14.97	%		8.32	%		13.51	%		8.92	%		12.66	%		11.64	%		11.21	%
Efficiency ratio		68.90	%		80.00	%		71.09	%		76.78	%		75.86	%		74.14	%		76.98	%
Earning asset yield		5.29	%		5.23	%		5.18	%		5.16	%		5.02	%		5.25	%		4.96	%
Cost of interest bearing liabilities		2.33	%		2.32	%		2.36	%		2.53	%		2.47	%		2.30	%		2.51	%
Net interest margin		3.48	%		3.40	%		3.35	%		3.17	%		3.12	%		3.43	%		3.04	%
Tax equivalent effect		0.01	%		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%
Net interest margin, tax equivalent		3.49	%		3.41	%		3.36	%		3.19	%		3.13	%		3.44	%		3.05	%
Non interest income/Average assets		1.35	%		1.14	%		1.30	%		1.19	%		1.31	%		1.25	%		1.25	%
Non interest expense/Average assets		3.17	%		3.45	%		3.14	%		3.18	%		3.20	%		3.31	%		3.15	%
Net noninterest expense/Average assets		-1.82	%		-2.31	%		-1.84	%		-1.99	%		-1.88	%		-2.06	%		-1.90	%

ASSET QUALITY RATIOS:
Gross charge-offs		49			86			195			29			-			135			66
Recoveries		3			2			13			2			16			5			25
Net charge-offs		46			84			182			27			(16	)		130			41
Nonperforming loans/Total loans		0.54	%		0.56	%		0.53	%		0.54	%		0.47	%		0.54	%		0.47	%
Nonperforming assets/Loans & OREO		0.57	%		0.56	%		0.53	%		0.54	%		0.52	%		0.57	%		0.52	%
Nonperforming assets/Total assets		0.42	%		0.41	%		0.40	%		0.40	%		0.39	%		0.42	%		0.39	%
Allowance for credit loss/Nonperforming loans		264.99	%		254.35	%		273.68	%		276.83	%		329.78	%		264.99	%		329.78	%
Allowance for credit loss/Total loans		1.43	%		1.41	%		1.44	%		1.48	%		1.55	%		1.43	%		1.55	%
Net loan charge-offs/Average loans (ann.)		0.02	%		0.03	%		0.07	%		0.01	%		(0.01	%)		0.02	%		0.01	%

CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		87.59	%		85.61	%		90.81	%		88.82	%		90.15	%		87.59	%		90.15	%
Equity/ Assets		8.99	%		8.76	%		9.24	%		9.53	%		9.35	%		8.99	%		9.35	%
Tangible equity/Tangible assets		7.17	%		6.96	%		7.66	%		7.97	%		7.72	%		7.17	%		7.72	%
Common equity tier 1 ratio (Bank)		12.53	%		12.35	%		13.43	%		13.19	%		13.98	%		12.53	%		13.98	%

END OF PERIOD BALANCES
Total assets		1,486,301			1,501,002			1,379,517			1,393,949			1,342,186			1,486,301			1,342,186
Total loans		1,094,719			1,088,274			1,046,735			1,029,955			1,005,390			1,094,719			1,005,390
Deposits		1,249,822			1,271,220			1,152,605			1,159,533			1,115,188			1,249,822			1,115,188
Shareholders equity		133,648			131,526			127,508			132,841			125,479			133,648			125,479
Goodwill and intangibles		29,107			29,125			23,597			23,613			23,630			29,107			23,630
Tangible equity		104,541			102,401			103,911			109,228			101,849			104,541			101,849
Mortgage servicing portfolio		1,456,374			1,432,184			1,427,318			1,406,273			1,389,805			1,456,374			1,389,805
Wealth/Brokerage assets under care		536,836			519,158			547,697			557,724			525,713			536,836			525,713
Total assets under care		3,479,511			3,452,344			3,354,532			3,357,946			3,257,704			3,479,511			3,257,704
Full-time equivalent employees		256			262			252			248			249			256			249
Period end common shares outstanding		6,359			6,483			6,494			6,624			6,676			6,359			6,676
Market capitalization (all)		121,453			134,982			135,780			136,189			93,458			121,453			93,458

SB Financial Group Announces Second Quarter 2025 Results