DEFIANCE, Ohio, May 01, 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 first quarter ended March 31, 2025.
First Quarter 2025 Highlights Over the First Quarter Prior Year Include:
- Adjusted net income of $2.7 million, after accounting for $0.7 million of nonrecurring merger expenses, was up 23.2 percent from the prior year adjusted net income of $2.2 million, with adjusted Diluted Earnings Per Share ("DEPS") of $0.42. Unadjusted net income and EPS were slightly below the prior year quarter.
- Successful completion of the Marblehead Bank acquisition, adding $56 million of low-cost deposits and $19 million in loans.
- Interest income of $17.4 million increased by 13.5 percent from $15.3 million reported in the prior year quarter.
- Loan growth of $96.7 million, or 9.8 percent from the prior-year quarter, with growth from the linked quarter of $41.6 million. This was our fourth consecutive quarter of sequential expanding loan growth, year over year. Growth adjusted for the Marblehead acquisition would be $78.2 and $23.1 million, from the linked quarter.
- Deposit growth of $159.7 million, or 14.4 percent from the prior-year quarter, with growth from the linked quarter of $119.4 million. Growth adjusted for the Marblehead acquisition would be $103.7 and $63.4 million, from the linked quarter.
- Tangible book value ("TBV") per share ended the quarter at $15.79 up $0.86 per share or 5.8 percent from the prior year quarter. Absent the per share dilution from the acquisition of $0.87, TBV would have been up $1.73 per share or 11.6 percent.
| Earnings Highlights | Three Months Ended | |||||||
| ($ in thousands, except per share & ratios) | Mar. 2025 | Mar. 2024 | % Change | |||||
| Operating revenue | $ | 15,386 | $ | 13,131 | 17.2 | % | ||
| Interest income | 17,372 | 15,300 | 13.5 | % | ||||
| Interest expense | 6,093 | 6,120 | -0.4 | % | ||||
| Net interest income | 11,279 | 9,180 | 22.9 | % | ||||
| Provision for credit losses | 387 | - | N/M | |||||
| Noninterest income | 4,107 | 3,951 | 3.9 | % | ||||
| Noninterest expense | 12,410 | 10,282 | 20.7 | % | ||||
| Net income | 2,158 | 2,368 | -8.9 | % | ||||
| Merger adjusted Earnings per diluted share | 0.42 | 0.33 | 27.3 | % | ||||
| Earnings per diluted share | 0.33 | 0.35 | -5.7 | % | ||||
| Merger adjusted Return on Avg. Assets | 0.76 | % | 0.67% | 13.4 | % | |||
| Return on average assets | 0.60 | % | 0.71% | -15.5 | % | |||
| Merger adjusted Return on Avg. Equity | 8.35 | % | 7.26% | 15.0 | % | |||
| Return on average equity | 6.63 | % | 7.72% | -14.1 | % | |||
"Our first quarter results highlight the value of our growth strategy, even in the midst of temporary economic uncertainty," said Mark A. Klein, Chairman, President, and CEO. "Merger adjusted net income for the quarter was $2.7 million, a 22.3 percent increase from the prior-year quarter, with the GAAP EPS of $0.33 slightly down from the prior year. The successful closing of the acquisition in the first quarter significantly strengthened our liquidity position through their low-cost deposit base and further expanded our market presence in Northern Ohio. This marks an important milestone in executing our long-term growth strategy to grow organically and through M & A."
Interest income for the quarter grew by 13.5 percent to $17.4 million compared to the previous year, driven by continued strong loan growth. Total loans increased by $96.7 million, compared to the prior year, and by $41.5 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $78.2 and $23.1 million, respectively. Deposits rose by $158.9 million, or 14.3 percent, to $1.27 billion, a result of the acquisition and a testament to the trust our clients place in us. Adjusted for the acquisition, deposit growth would have been $102.9 and $62.6 million, respectively.
RESULTS OF OPERATIONS
Consolidated Revenue
In the first quarter of 2025, total operating revenue increased to $15.4 million, a 17.2 percent rise from $13.1 million in the prior year and a slight 0.1 percent decrease from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $11.3 million, a strong 22.9 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.7 million to $15.4 million. Deposit costs increased by 5.1 percent to $5.4 million, but were largely offset by decreases in interest expense on other funding sources, resulting in a 0.4 percent decrease in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 41 basis points year-over-year to 3.40 percent, reflecting the continued strength of our interest-earning assets and disciplined management of our funding costs. Noninterest income for the quarter increased by 3.9 percent year-over-year to $4.1 million due to improvements in gains on sale and title insurance, partially offset by decreases in mortgage loan servicing fees. Looking ahead, we remain focused on maintaining a balanced strategy that drives sustainable revenue growth while effectively managing costs, ensuring consistent value creation for our shareholders.
Mortgage Loan Business
Net mortgage banking revenue for the quarter reached $1.5 million, down $84,000 from the prior-year quarter. Loan servicing fees added $894,000 to revenue, reflecting an increase of $39,000 from the prior year quarter. The OMSR net valuation adjustment for the first quarter of 2025 was a positive $11,000 compared to a positive $181,000 in the first quarter of 2024.
| Mortgage Banking | ||||||||||||||||||
| ($ in thousands) | Mar. 2025 | Dec. 2024 | Sep. 2024 | Jun. 2024 | Mar. 2024 | Prior Year Growth | ||||||||||||
| Mortgage originations | $ | 39,775 | $ | 72,534 | $ | 70,715 | $ | 75,110 | $ | 42,912 | $ | (3,137 | ) | |||||
| Mortgage sales | 39,279 | 62,301 | 61,271 | 55,835 | 36,623 | 2,656 | ||||||||||||
| Mortgage servicing portfolio | 1,432,184 | 1,427,318 | 1,406,273 | 1,389,805 | 1,371,713 | 60,471 | ||||||||||||
| Mortgage servicing rights | 14,965 | 14,868 | 14,357 | 14,548 | 14,191 | 774 | ||||||||||||
| Revenue | ||||||||||||||||||
| Loan servicing fees | 894 | 886 | 874 | 862 | 855 | 39 | ||||||||||||
| OMSR amortization | (294 | ) | (358 | ) | (370 | ) | (335 | ) | (273 | ) | (21 | ) | ||||||
| Net administrative fees | 600 | 528 | 504 | 527 | 582 | 18 | ||||||||||||
| OMSR valuation adjustment | 11 | 288 | (465 | ) | 38 | 181 | (170 | ) | ||||||||||
| Net loan servicing fees | 611 | 816 | 39 | 565 | 763 | (152 | ) | |||||||||||
| Gain on sale of mortgages | 849 | 1,196 | 1,311 | 1,277 | 781 | 68 | ||||||||||||
| Mortgage banking revenue, net | $ | 1,460 | $ | 2,012 | $ | 1,350 | $ | 1,842 | $ | 1,544 | $ | (84 | ) | |||||
Noninterest Income and Noninterest Expense
"Noninterest income for the first quarter of 2025 totaled $4.1 million, up $156,000 or 3.9 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 $68,000 year over year, and title insurance revenue added $131,000, reflecting the consistent benefit of our revenue diversification strategy," Mr. Klein noted.
| Noninterest Income/Noninterest Expense | |||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2025 | Dec. 2024 | Sep. 2024 | Jun. 2024 | Mar. 2024 | Prior Year Growth | |||||||||||||
| Noninterest Income (NII) | $ | 4,107 | $ | 4,557 | $ | 4,123 | $ | 4,386 | $ | 3,951 | $ | 156 | |||||||
| NII / Total Revenue | 26.7% | 29.5% | 28.8% | 31.5% | 30.1% | -3.4% | |||||||||||||
| NII / Average Assets | 1.1% | 1.3% | 1.2% | 1.3% | 1.2% | -0.1% | |||||||||||||
| Total Revenue Growth | 17.2% | 2.2% | 4.5% | -0.6% | -6.1% | 23.3% | |||||||||||||
| Noninterest Expense (NIE) | $ | 12,410 | $ | 11,003 | $ | 11,003 | $ | 10,671 | $ | 10,282 | $ | 2,128 | |||||||
| Efficiency Ratio | 80.0% | 71.1% | 76.8% | 75.9% | 78.2% | 1.8% | |||||||||||||
| NIE / Average Assets | 3.4% | 3.2% | 3.2% | 3.2% | 3.1% | 0.3% | |||||||||||||
| Net Noninterest Expense/Avg. Assets | -2.3% | -1.9% | -2.0% | -1.9% | -1.9% | -0.4% | |||||||||||||
| Total Expense Growth | 20.7% | 6.1% | 5.0% | 3.2% | -4.6% | 25.3% | |||||||||||||
Noninterest expense for the first quarter of 2025 was impacted by the one-time merger related expenses of $726,000. Adjusting for these expenses and the $300,000 in Marblehead operating expenses for the quarter, total operating costs were up just 3.5 percent from the linked quarter and 10.7 percent.
"Our efficiency ratio in the first quarter of 2025 was 76.0 percent when we factor out the merger related costs, which was an improvement compared to the prior year." stated Mr. Klein.
Balance Sheet
As of March 31, 2025, SB Financial reported total assets of $1.50 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $96.7 million or 9.8 percent increase year over year. Loan growth also included $18.7 million in loans added with the completion of the acquisition. Cash increased by $78.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.
Total deposits increased to $1.27 billion, growing $158.9 million or 14.3 percent year over year, including $56 million in low-cost deposits from the acquisition and $102.9 million in organic deposit growth reflecting SB Financial's successful efforts in deposit gathering and customer engagement. Shareholders' equity ended the quarter at $131.5 million, representing a $7.8 million increase from the prior year. This growth reflects management's commitment to enhancing shareholder value and the Company's disciplined approach to capital management.
During the first quarter, SB Financial repurchased 26,446 shares, less than previous quarters as the average price was above our target range. This reflects the Company's dedication 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 remainder of 2025, our balance sheet strength and strategic management of resources highlight our long-term strategic growth ambitions, both organically and through successful acquisitions," said Mr. Klein, Chairman, President, and CEO. "Even in the current challenging rate environment, we achieved our fourth consecutive quarter of loan growth, with balances increasing by $96.7 million from the previous year, which included $78.2 million of organic loan growth. This performance underscores the strength of our deep client relationships and our continued competitiveness in the market. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, which we will leverage to take advantage of emerging opportunities while maintaining our focus on operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economic landscape stabilizes."
| Loan Balances | ||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2025 | Dec. 2024 | Sep. 2024 | Jun. 2024 | Mar. 2024 | Annual Growth | ||||||||||||
| Commercial | $ | 125,878 | $ | 124,764 | $ | 123,821 | $ | 123,287 | $ | 120,016 | $ | 5,862 | ||||||
| % of Total | 11.6% | 11.9% | 12.0% | 12.3% | 12.1% | 4.9% | ||||||||||||
| Commercial RE | 509,518 | 479,573 | 459,449 | 434,967 | 429,362 | 80,156 | ||||||||||||
| % of Total | 46.8% | 45.8% | 44.6% | 43.3% | 43.3% | 18.7% | ||||||||||||
| Agriculture | 61,443 | 64,680 | 64,887 | 64,329 | 62,365 | (922 | ) | |||||||||||
| % of Total | 5.6% | 6.2% | 6.3% | 6.4% | 6.3% | -1.5% | ||||||||||||
| Residential RE | 319,307 | 308,378 | 314,010 | 316,233 | 314,668 | 4,639 | ||||||||||||
| % of Total | 29.3% | 29.5% | 30.5% | 31.5% | 31.7% | 1.5% | ||||||||||||
| Consumer & Other | 72,128 | 69,340 | 67,788 | 66,574 | 65,141 | 6,987 | ||||||||||||
| % of Total | 6.6% | 6.6% | 6.6% | 6.6% | 6.6% | 10.7% | ||||||||||||
| Total Loans | $ | 1,088,274 | $ | 1,046,735 | $ | 1,029,955 | $ | 1,005,390 | $ | 991,552 | $ | 96,722 | ||||||
| Total Growth Percentage | 9.8% | |||||||||||||||||
| Deposit Balances | ||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2025 | Dec. 2024 | Sep. 2024 | Jun. 2024 | Mar. 2024 | Annual Growth | ||||||||||||
| Non-Int DDA | $ | 240,446 | $ | 232,155 | $ | 222,425 | $ | 208,244 | $ | 219,395 | $ | 21,051 | ||||||
| % of Total | 18.9% | 20.1% | 19.2% | 18.7% | 19.7% | 9.6% | ||||||||||||
| Interest DDA | 208,583 | 201,085 | 202,097 | 190,857 | 169,171 | 39,412 | ||||||||||||
| % of Total | 16.4% | 17.4% | 17.4% | 17.1% | 15.2% | 23.3% | ||||||||||||
| Savings | 285,902 | 237,987 | 241,761 | 231,855 | 244,157 | 41,745 | ||||||||||||
| % of Total | 22.5% | 20.6% | 20.8% | 20.8% | 21.9% | 17.1% | ||||||||||||
| Money Market | 257,013 | 222,161 | 228,182 | 225,650 | 221,362 | 35,651 | ||||||||||||
| % of Total | 20.2% | 19.3% | 19.7% | 20.2% | 19.9% | 16.1% | ||||||||||||
| Time Deposits | 279,276 | 259,217 | 265,068 | 258,582 | 258,257 | 21,019 | ||||||||||||
| % of Total | 22.0% | 22.5% | 22.9% | 23.2% | 23.2% | 8.1% | ||||||||||||
| Total Deposits | $ | 1,271,220 | $ | 1,152,605 | $ | 1,159,533 | $ | 1,115,188 | $ | 1,112,342 | $ | 158,878 | ||||||
| Total Growth Percentage | 14.3% | |||||||||||||||||
Asset Quality
As of March 31, 2025, SB Financial continued to demonstrate strong asset quality metrics. Nonperforming assets totaled $6.1 million, representing 0.41 percent of total assets, an increase of $3.2 million compared to $2.9 million or 0.22 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we continue to expect to resolve favorably in 2025.
The allowance for credit losses remained strong at 1.41 percent of total loans, providing 254.4 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of our conservative approach to risk management amid the current environment. The net loan charge-offs to average loans ratio remained modest at 3 basis points, improving from 7 basis points in the prior quarter and consistent with the year-ago period, reflecting disciplined credit practices and effective collateral management.
"Our asset quality metrics fully illustrate the diligence of our approach and commitment to disciplined risk management," stated Mark Klein, Chairman, President, and CEO. "While we observed a slight uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio. We remain focused on balancing our conservative approach in maintaining the integrity of our credit processes with the need to effectively manage our balance sheet for long-term growth."
| Nonperforming Assets | ||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2025 | Dec. 2024 | Sep. 2024 | Jun. 2024 | Mar. 2024 | Annual Change | ||||||||||||
| Commercial & Agriculture | $ | 3,418 | $ | 2,927 | $ | 2,899 | $ | 2,781 | $ | 897 | $ | 2,521 | ||||||
| % of Total Com./Ag. loans | 1.82% | 1.55% | 1.54% | 1.48% | 0.49% | 281.0% | ||||||||||||
| Commercial RE | 798 | 807 | 813 | 475 | 49 | 749 | ||||||||||||
| % of Total CRE loans | 0.16% | 0.17% | 0.18% | 0.11% | 0.01% | 1528.6% | ||||||||||||
| Residential RE | 1,608 | 1,539 | 1,536 | 1,247 | 1,295 | 313 | ||||||||||||
| % of Total Res. RE loans | 0.50% | 0.50% | 0.49% | 0.39% | 0.41% | 24.2% | ||||||||||||
| Consumer & Other | 227 | 243 | 270 | 231 | 193 | 34 | ||||||||||||
| % of Total Con./Oth. loans | 0.31% | 0.35% | 0.40% | 0.35% | 0.30% | 17.6% | ||||||||||||
| Total Nonaccruing Loans | 6,051 | 5,516 | 5,518 | 4,734 | 2,434 | 3,617 | ||||||||||||
| % of Total loans | 0.56% | 0.53% | 0.54% | 0.47% | 0.25% | 148.6% | ||||||||||||
| Foreclosed Assets and Other Assets | 73 | - | - | 510 | 510 | (437 | ) | |||||||||||
| Total Change (%) | -85.7% | |||||||||||||||||
| Total Nonperforming Assets | $ | 6,124 | $ | 5,516 | $ | 5,518 | $ | 5,244 | $ | 2,944 | $ | 3,180 | ||||||
| % of Total assets | 0.41% | 0.40% | 0.40% | 0.39% | 0.22% | 108.02% | ||||||||||||
Webcast and Conference Call
The Company will hold the first quarter 2025 earnings conference call and webcast on May 2, 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) | |||||||||||||||||||||||
| March | December | September | June | March | |||||||||||||||||||
| ($ in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Cash and due from banks | $ | 105,145 | $ | 25,928 | $ | 49,348 | $ | 21,983 | $ | 26,602 | |||||||||||||
| Interest bearing time deposits | 1,565 | 1,565 | 1,706 | 2,417 | 2,417 | ||||||||||||||||||
| Available-for-sale securities | 199,721 | 201,587 | 211,511 | 207,856 | 213,239 | ||||||||||||||||||
| Loans held for sale | 4,286 | 6,770 | 8,927 | 7,864 | 4,730 | ||||||||||||||||||
| Loans, net of unearned income | 1,088,274 | 1,046,735 | 1,029,955 | 1,005,390 | 991,552 | ||||||||||||||||||
| Allowance for credit losses | (15,391 | ) | (15,096 | ) | (15,278 | ) | (15,612 | ) | (15,643 | ) | |||||||||||||
| Premises and equipment, net | 21,875 | 20,456 | 20,715 | 20,860 | 20,985 | ||||||||||||||||||
| Federal Reserve and FHLB Stock, at cost | 5,340 | 5,223 | 5,223 | 5,204 | 6,512 | ||||||||||||||||||
| Foreclosed assets and other assets | 73 | - | - | 510 | 510 | ||||||||||||||||||
| Interest receivable | 5,072 | 4,908 | 4,842 | 4,818 | 3,706 | ||||||||||||||||||
| Goodwill | 27,158 | 23,239 | 23,239 | 23,239 | 23,239 | ||||||||||||||||||
| Cash value of life insurance | 30,871 | 30,685 | 30,488 | 30,294 | 30,103 | ||||||||||||||||||
| Mortgage servicing rights | 14,965 | 14,868 | 14,357 | 14,548 | 14,191 | ||||||||||||||||||
| Other assets | 12,048 | 12,649 | 8,916 | 12,815 | 13,869 | ||||||||||||||||||
| Total assets | $ | 1,501,002 | $ | 1,379,517 | $ | 1,393,949 | $ | 1,342,186 | $ | 1,336,012 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Non interest bearing demand | $ | 240,446 | $ | 232,155 | $ | 222,425 | $ | 208,244 | $ | 219,395 | |||||||||||||
| Interest bearing demand | 208,583 | 201,085 | 202,097 | 190,857 | 169,171 | ||||||||||||||||||
| Savings | 285,902 | 237,987 | 241,761 | 231,855 | 244,157 | ||||||||||||||||||
| Money market | 257,013 | 222,161 | 228,182 | 225,650 | 221,362 | ||||||||||||||||||
| Time deposits | 279,276 | 259,217 | 265,068 | 258,582 | 258,257 | ||||||||||||||||||
| Total deposits | 1,271,220 | 1,152,605 | 1,159,533 | 1,115,188 | 1,112,342 | ||||||||||||||||||
| Short-term borrowings | 11,058 | 10,585 | 15,240 | 15,178 | 12,916 | ||||||||||||||||||
| 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 | 19,702 | 19,690 | 19,678 | 19,666 | 19,654 | ||||||||||||||||||
| Interest payable | 2,634 | 2,351 | 3,374 | 2,944 | 2,772 | ||||||||||||||||||
| Other liabilities | 19,552 | 21,468 | 17,973 | 18,421 | 19,295 | ||||||||||||||||||
| Total liabilities | 1,369,476 | 1,252,009 | 1,261,108 | 1,216,707 | 1,212,289 | ||||||||||||||||||
| Shareholders' Equity | |||||||||||||||||||||||
| Common stock | 61,319 | 61,319 | 61,319 | 61,319 | 61,319 | ||||||||||||||||||
| Additional paid-in capital | 14,955 | 15,194 | 15,090 | 15,195 | 14,978 | ||||||||||||||||||
| Retained earnings | 117,397 | 116,186 | 113,515 | 112,104 | 109,938 | ||||||||||||||||||
| Accumulated other comprehensive loss | (26,872 | ) | (30,234 | ) | (24,870 | ) | (31,801 | ) | (31,547 | ) | |||||||||||||
| Treasury stock | (35,273 | ) | (34,957 | ) | (32,213 | ) | (31,338 | ) | (30,965 | ) | |||||||||||||
| Total shareholders' equity | 131,526 | 127,508 | 132,841 | 125,479 | 123,723 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,501,002 | $ | 1,379,517 | $ | 1,393,949 | $ | 1,342,186 | $ | 1,336,012 | |||||||||||||
| SB FINANCIAL GROUP, INC. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) | ||||||||||||||||||||
| ($ in thousands, except per share & ratios) | At and for the Three Months Ended | |||||||||||||||||||
| March | December | September | June | March | ||||||||||||||||
| Interest income | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Loans | ||||||||||||||||||||
| Taxable | $ | 15,244 | $ | 14,920 | $ | 14,513 | $ | 13,883 | $ | 13,547 | ||||||||||
| Tax exempt | 115 | 122 | 127 | 124 | 123 | |||||||||||||||
| Securities | ||||||||||||||||||||
| Taxable | 1,169 | 1,178 | 1,192 | 1,226 | 1,274 | |||||||||||||||
| Tax exempt | 38 | 35 | 37 | 37 | 37 | |||||||||||||||
| Other interest income | 806 | 592 | 679 | 384 | 319 | |||||||||||||||
| Total interest income | 17,372 | 16,847 | 16,548 | 15,654 | 15,300 | |||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 5,352 | 5,169 | 5,568 | 5,208 | 5,090 | |||||||||||||||
| Repurchase agreements & other | 24 | 41 | 43 | 36 | 34 | |||||||||||||||
| Federal Home Loan Bank advances | 362 | 369 | 369 | 370 | 613 | |||||||||||||||
| Trust preferred securities | 160 | 177 | 187 | 187 | 188 | |||||||||||||||
| Subordinated debt | 195 | 194 | 195 | 194 | 195 | |||||||||||||||
| Total interest expense | 6,093 | 5,950 | 6,362 | 5,995 | 6,120 | |||||||||||||||
| Net interest income | 11,279 | 10,897 | 10,186 | 9,659 | 9,180 | |||||||||||||||
| Provision for credit losses | 387 | (76 | ) | 200 | - | - | ||||||||||||||
| Net interest income after provision | ||||||||||||||||||||
| for loan losses | 10,892 | 10,973 | 9,986 | 9,659 | 9,180 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Wealth management fees | 864 | 916 | 882 | 848 | 865 | |||||||||||||||
| Customer service fees | 879 | 842 | 870 | 875 | 880 | |||||||||||||||
| Gain on sale of mtg. loans & OMSR | 849 | 1,196 | 1,311 | 1,277 | 781 | |||||||||||||||
| Mortgage loan servicing fees, net | 611 | 816 | 39 | 565 | 763 | |||||||||||||||
| Gain on sale of non-mortgage loans | 15 | 10 | 20 | 105 | 10 | |||||||||||||||
| Title insurance revenue | 397 | 478 | 485 | 406 | 266 | |||||||||||||||
| Net gain on sales of securities | - | - | - | - | - | |||||||||||||||
| Gain (loss) on sale of assets | - | - | 200 | - | - | |||||||||||||||
| Other | 492 | 299 | 316 | 310 | 386 | |||||||||||||||
| Total noninterest income | 4,107 | 4,557 | 4,123 | 4,386 | 3,951 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 6,237 | 6,185 | 6,057 | 6,009 | 5,352 | |||||||||||||||
| Net occupancy expense | 893 | 702 | 706 | 707 | 769 | |||||||||||||||
| Equipment expense | 1,072 | 1,127 | 1,069 | 1,060 | 1,077 | |||||||||||||||
| Data processing fees | 1,439 | 821 | 758 | 727 | 769 | |||||||||||||||
| Professional fees | 1,034 | 895 | 659 | 615 | 758 | |||||||||||||||
| Marketing expense | 165 | 207 | 241 | 176 | 197 | |||||||||||||||
| Telephone and communication expense | 139 | 136 | 128 | 156 | 105 | |||||||||||||||
| Postage and delivery expense | 137 | 116 | 145 | 89 | 97 | |||||||||||||||
| State, local and other taxes | 224 | 224 | 208 | 230 | 245 | |||||||||||||||
| Employee expense | 174 | 168 | 228 | 159 | 178 | |||||||||||||||
| Other expenses | 896 | 422 | 804 | 743 | 735 | |||||||||||||||
| Total noninterest expense | 12,410 | 11,003 | 11,003 | 10,671 | 10,282 | |||||||||||||||
| Income before income tax expense | 2,589 | 4,527 | 3,106 | 3,374 | 2,849 | |||||||||||||||
| Income tax expense | 431 | 892 | 752 | 261 | 481 | |||||||||||||||
| Net income | $ | 2,158 | $ | 3,635 | $ | 2,354 | $ | 3,113 | $ | 2,368 | ||||||||||
| Common share data: | ||||||||||||||||||||
| Basic earnings per common share | $ | 0.33 | $ | 0.55 | $ | 0.35 | $ | 0.47 | $ | 0.35 | ||||||||||
| Diluted earnings per common share | $ | 0.33 | $ | 0.55 | $ | 0.35 | $ | 0.47 | $ | 0.35 | ||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||
| Basic: | 6,481 | 6,575 | 6,660 | 6,692 | 6,715 | |||||||||||||||
| Diluted: | 6,502 | 6,599 | 6,675 | 6,700 | 6,723 | |||||||||||||||
| SB FINANCIAL GROUP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) | ||||||||||||||||||||
| ($ in thousands, except per share & ratios) | At and for the Three Months Ended | |||||||||||||||||||
| March | December | September | June | March | ||||||||||||||||
| SUMMARY OF OPERATIONS | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Net interest income | $ | 11,279 | $ | 10,897 | $ | 10,186 | $ | 9,659 | $ | 9,180 | ||||||||||
| Tax-equivalent adjustment | 41 | 42 | 44 | 43 | 43 | |||||||||||||||
| Tax-equivalent net interest income | 11,320 | 10,939 | 10,230 | 9,702 | 9,223 | |||||||||||||||
| Provision for credit loss | 387 | (76 | ) | 200 | - | - | ||||||||||||||
| Noninterest income | 4,107 | 4,557 | 4,123 | 4,386 | 3,951 | |||||||||||||||
| Total operating revenue | 15,386 | 15,454 | 14,309 | 14,045 | 13,131 | |||||||||||||||
| Noninterest expense | 12,410 | 11,003 | 11,003 | 10,671 | 10,282 | |||||||||||||||
| Pre-tax pre-provision income | 2,976 | 4,451 | 3,306 | 3,374 | 2,849 | |||||||||||||||
| Net income | 2,158 | 3,635 | 2,354 | 3,113 | 2,368 | |||||||||||||||
| PER SHARE INFORMATION: | ||||||||||||||||||||
| Basic earnings per share (EPS) | 0.33 | 0.55 | 0.35 | 0.47 | 0.35 | |||||||||||||||
| Diluted earnings per share | 0.33 | 0.55 | 0.35 | 0.47 | 0.35 | |||||||||||||||
| Common dividends | 0.145 | 0.145 | 0.140 | 0.140 | 0.135 | |||||||||||||||
| Book value per common share | 20.29 | 19.64 | 20.05 | 18.80 | 18.46 | |||||||||||||||
| Tangible book value per common share (TBV) | 15.79 | 16.00 | 16.49 | 15.26 | 14.93 | |||||||||||||||
| Market price per common share | 20.82 | 20.91 | 20.56 | 14.00 | 13.78 | |||||||||||||||
| Market price to TBV | 131.8 | % | 130.7 | % | 124.7 | % | 91.8 | % | 92.3 | % | ||||||||||
| Market price to trailing 12 month EPS | 12.2 | 12.1 | 11.8 | 7.9 | 7.9 | |||||||||||||||
| PERFORMANCE RATIOS: | ||||||||||||||||||||
| Return on average assets (ROAA) | 0.60 | % | 1.04 | % | 0.68 | % | 0.93 | % | 0.71 | % | ||||||||||
| Pre-tax pre-provision ROAA | 0.83 | % | 1.28 | % | 0.96 | % | 1.01 | % | 0.86 | % | ||||||||||
| Return on average equity (ROE) | 6.63 | % | 11.13 | % | 7.32 | % | 10.16 | % | 7.72 | % | ||||||||||
| Return on average tangible equity | 8.32 | % | 13.58 | % | 8.97 | % | 12.59 | % | 9.55 | % | ||||||||||
| Efficiency ratio | 80.00 | % | 71.09 | % | 76.78 | % | 75.86 | % | 78.17 | % | ||||||||||
| Earning asset yield | 5.23 | % | 5.18 | % | 5.16 | % | 5.02 | % | 4.97 | % | ||||||||||
| Cost of interest bearing liabilities | 2.32 | % | 2.36 | % | 2.53 | % | 2.47 | % | 2.55 | % | ||||||||||
| Net interest margin | 3.40 | % | 3.35 | % | 3.17 | % | 3.10 | % | 2.99 | % | ||||||||||
| Tax equivalent effect | 0.01 | % | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | ||||||||||
| Net interest margin, tax equivalent | 3.41 | % | 3.36 | % | 3.19 | % | 3.11 | % | 3.00 | % | ||||||||||
| Non interest income/Average assets | 1.14 | % | 1.31 | % | 1.20 | % | 1.31 | % | 1.19 | % | ||||||||||
| Non interest expense/Average assets | 3.45 | % | 3.15 | % | 3.20 | % | 3.18 | % | 3.08 | % | ||||||||||
| Net noninterest expense/Average assets | -2.31 | % | -1.85 | % | -2.00 | % | -1.87 | % | -1.90 | % | ||||||||||
| ASSET QUALITY RATIOS: | ||||||||||||||||||||
| Gross charge-offs | 87 | 195 | 29 | - | 66 | |||||||||||||||
| Recoveries | 2 | 13 | 2 | 16 | 9 | |||||||||||||||
| Net charge-offs | 85 | 182 | 27 | (16 | ) | 57 | ||||||||||||||
| Nonperforming loans/Total loans | 0.56 | % | 0.53 | % | 0.54 | % | 0.47 | % | 0.25 | % | ||||||||||
| Nonperforming assets/Loans & OREO | 0.56 | % | 0.53 | % | 0.54 | % | 0.52 | % | 0.30 | % | ||||||||||
| Nonperforming assets/Total assets | 0.41 | % | 0.40 | % | 0.40 | % | 0.39 | % | 0.22 | % | ||||||||||
| Allowance for credit loss/Nonperforming loans | 254.35 | % | 273.68 | % | 276.83 | % | 329.78 | % | 642.69 | % | ||||||||||
| Allowance for credit loss/Total loans | 1.41 | % | 1.44 | % | 1.48 | % | 1.55 | % | 1.58 | % | ||||||||||
| Net loan charge-offs/Average loans (ann.) | 0.03 | % | 0.07 | % | 0.01 | % | (0.01 | %) | 0.02 | % | ||||||||||
| CAPITAL & LIQUIDITY RATIOS: | ||||||||||||||||||||
| Loans/ Deposits | 85.61 | % | 90.81 | % | 88.82 | % | 90.15 | % | 89.14 | % | ||||||||||
| Equity/ Assets | 8.76 | % | 9.24 | % | 9.53 | % | 9.35 | % | 9.26 | % | ||||||||||
| Tangible equity/Tangible assets | 6.96 | % | 7.66 | % | 7.97 | % | 7.72 | % | 7.63 | % | ||||||||||
| Common equity tier 1 ratio (Bank) | 12.35 | % | 13.43 | % | 13.19 | % | 13.98 | % | 13.84 | % | ||||||||||
| END OF PERIOD BALANCES | ||||||||||||||||||||
| Total assets | 1,501,002 | 1,379,517 | 1,393,949 | 1,342,186 | 1,336,012 | |||||||||||||||
| Total loans | 1,088,274 | 1,046,735 | 1,029,955 | 1,005,390 | 991,552 | |||||||||||||||
| Deposits | 1,271,220 | 1,152,605 | 1,159,533 | 1,115,188 | 1,112,342 | |||||||||||||||
| Shareholders equity | 131,526 | 127,508 | 132,841 | 125,479 | 123,723 | |||||||||||||||
| Goodwill and intangibles | 29,125 | 23,597 | 23,613 | 23,630 | 23,646 | |||||||||||||||
| Tangible equity | 102,401 | 103,911 | 109,228 | 101,849 | 100,077 | |||||||||||||||
| Mortgage servicing portfolio | 1,432,184 | 1,427,318 | 1,406,273 | 1,389,805 | 1,371,713 | |||||||||||||||
| Wealth/Brokerage assets under care | 519,158 | 547,697 | 557,724 | 525,713 | 525,517 | |||||||||||||||
| Total assets under care | 3,452,344 | 3,354,532 | 3,357,946 | 3,257,704 | 3,233,242 | |||||||||||||||
| Full-time equivalent employees | 262 | 252 | 248 | 249 | 245 | |||||||||||||||
| Period end common shares outstanding | 6,483 | 6,494 | 6,624 | 6,676 | 6,702 | |||||||||||||||
| Market capitalization (all) | 134,982 | 135,780 | 136,189 | 93,458 | 92,359 | |||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||
| Total assets | 1,459,896 | 1,395,473 | 1,376,849 | 1,342,847 | 1,333,236 | |||||||||||||||
| Total earning assets | 1,346,354 | 1,301,872 | 1,283,407 | 1,246,099 | 1,230,736 | |||||||||||||||
| Total loans | 1,076,328 | 1,040,580 | 1,018,262 | 1,005,018 | 993,310 | |||||||||||||||
| Deposits | 1,227,449 | 1,163,531 | 1,145,964 | 1,120,367 | 1,091,803 | |||||||||||||||
| Shareholders equity | 131,944 | 130,647 | 128,608 | 122,510 | 123,058 | |||||||||||||||
| Goodwill and intangibles | 26,714 | 23,605 | 23,621 | 23,638 | 23,654 | |||||||||||||||
| Tangible equity | 105,230 | 107,042 | 104,987 | 98,872 | 99,404 | |||||||||||||||
| Average basic shares outstanding | 6,481 | 6,575 | 6,660 | 6,692 | 6,715 | |||||||||||||||
| Average diluted shares outstanding | 6,502 | 6,599 | 6,675 | 6,700 | 6,723 | |||||||||||||||
| SB FINANCIAL GROUP, INC. | |||||||||||||||||
| Rate Volume Analysis - (Unaudited) | |||||||||||||||||
| For the Three Months Ended Mar. 31, 2025 and 2024 | |||||||||||||||||
| ($ in thousands) | Three Months Ended Mar. 31, 2025 | Three Months Ended Mar. 31, 2024 | |||||||||||||||
| Average | Average | Average | Average | ||||||||||||||
| Assets | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
| Taxable securities | $ | 196,880 | $ | 1,276 | 2.63 | % | $ | 210,252 | $ | 1,413 | 2.70 | % | |||||
| Overnight Cash | 66,460 | 699 | 4.27 | % | 20,729 | 180 | 3.48 | % | |||||||||
| Nontaxable securities | 6,686 | 38 | 2.30 | % | 6,445 | 37 | 2.30 | % | |||||||||
| Loans, net | 1,076,328 | 15,359 | 5.79 | % | 993,310 | 13,670 | 5.52 | % | |||||||||
| Total earning assets | 1,346,354 | 17,372 | 5.23 | % | 1,230,736 | 15,300 | 4.99 | % | |||||||||
| Cash and due from banks | 10,339 | 4,512 | |||||||||||||||
| Allowance for loan losses | (15,238 | ) | (15,830 | ) | |||||||||||||
| Premises and equipment | 21,082 | 21,281 | |||||||||||||||
| Other assets | 97,359 | 92,537 | |||||||||||||||
| Total assets | $ | 1,459,896 | $ | 1,333,236 | |||||||||||||
| Liabilities | |||||||||||||||||
| Savings, MMDA and interest bearing demand | $ | 709,324 | $ | 2,959 | 1.69 | % | $ | 605,243 | $ | 2,525 | 1.67 | % | |||||
| Time deposits | 276,253 | 2,393 | 3.51 | % | 258,592 | 2,565 | 3.98 | % | |||||||||
| Repurchase agreements & other | 13,106 | 24 | 0.74 | % | 15,993 | 34 | 0.85 | % | |||||||||
| Advances from Federal Home Loan Bank | 35,044 | 362 | 4.19 | % | 51,030 | 613 | 4.82 | % | |||||||||
| Trust preferred securities | 10,310 | 160 | 6.29 | % | 10,310 | 188 | 7.31 | % | |||||||||
| Subordinated debt | 19,694 | 195 | 4.02 | % | 19,646 | 195 | 3.98 | % | |||||||||
| Total interest bearing liabilities | 1,063,731 | 6,093 | 2.32 | % | 960,814 | 6,120 | 2.55 | % | |||||||||
| Non interest bearing demand | 241,872 | - | 227,968 | - | |||||||||||||
| Total funding | 1,305,603 | 1.89 | % | 1,188,782 | 2.06 | % | |||||||||||
| 44.20 | % | 1 | |||||||||||||||
| Other liabilities | 22,349 | 21,396 | |||||||||||||||
| Total liabilities | 1,327,952 | 1,210,178 | |||||||||||||||
| Equity | 131,944 | 123,058 | |||||||||||||||
| Total liabilities and equity | $ | 1,459,896 | $ | 1,333,236 | |||||||||||||
| Net interest income | $ | 11,279 | $ | 9,180 | |||||||||||||
| Net interest income as a percent of average interest-earning assets - GAAP measure | 3.40 | % | 2.99 | % | |||||||||||||
| Net interest income as a percent of average interest-earning assets - non GAAP | 3.41 | % | 3.00 | % | |||||||||||||
| - Computed on a fully tax equivalent (FTE) basis | |||||||||||||||||
| Non-GAAP reconciliation | Three Months Ended | ||||||
| ($ in thousands, except per share & ratios) | Mar. 31, 2025 | Mar. 31, 2024 | |||||
| Total Operating Revenue | $ | 15,386 | $ | 13,131 | |||
| Adjustment to (deduct)/add OMSR recapture/impairment * | (11 | ) | (181 | ) | |||
| Adjusted Total Operating Revenue | 15,375 | 12,950 | |||||
| Total Operating Expense | $ | 12,410 | $ | 10,282 | |||
| Adjustment for merger expenses | (726 | ) | - | ||||
| Adjusted Total Operating Expense | 11,684 | 10,282 | |||||
| Income before Income Taxes | 2,589 | 2,849 | |||||
| Adjustment for OMSR*/Merger Expenses | 715 | (181 | ) | ||||
| Adjusted Income before Income Taxes | 3,304 | 2,668 | |||||
| Provision for Income Taxes | 431 | 481 | |||||
| Adjustment for OMSR/Merger Expenses ** | 150 | (38 | ) | ||||
| Adjusted Provision for Income Taxes | 581 | 443 | |||||
| Net Income | 2,158 | 2,368 | |||||
| Adjustment for OMSR*/Merger Expenses | 565 | (143 | ) | ||||
| Adjusted Net Income | 2,723 | 2,225 | |||||
| Diluted Earnings per Share | 0.33 | 0.35 | |||||
| Adjustment for OMSR*/Merger Expenses | 0.09 | (0.02 | ) | ||||
| Adjusted Diluted Earnings per Share | $ | 0.42 | $ | 0.33 | |||
| Return on Average Assets | 0.60 | % | 0.71 | % | |||
| Adjustment for OMSR*/Merger Expenses | 0.15 | % | -0.04 | % | |||
| Adjusted Return on Average Assets | 0.75 | % | 0.67 | % | |||
| *valuation adjustment to the Company's mortgage servicing rights | |||||||
| **tax effect is calculated using a 21% statutory federal corporate income tax rate | |||||||
