DEFIANCE, Ohio, April 23, 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 March 31, 2026.
First Quarter 2026 Highlights compared to the first quarter of the prior year include:
- GAAP net income and Diluted Earnings per Share ("DEPS") were $4.3 million, or $0.69 per DEPS, an improvement from the $2.2 million, or $0.33 per DEPS in the prior-year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights ("OMSR") and merger costs, was $3.9 million, up 44.7% percent compared to $2.7 million for the prior-year period. Adjusted DEPS of $0.63 was also up 50.0 percent, from the adjusted prior year.
- Net interest income of $12.7 million increased by 12.7 percent from $11.3 million reported in the prior-year quarter.
- Loan growth of $92.9 million, or 8.5 percent from the prior-year quarter, with growth from the linked quarter of $544,000, or 0.05 percent. This marks the eighth consecutive quarter of sequential loan growth.
- Deposit growth of $100.6 million, or 7.9 percent from the prior-year quarter, with an increase from the linked quarter of $64.6 million, or 4.9 percent.
- Adjusted tangible book value ("ATBV") per share excluding AOCI increased to $21.96 at quarter end. Tangible book value ("TBV") per share ended the quarter at $18.45 up $2.66 per share or 16.8 percent from the prior-year quarter.
| Earnings Highlights | Three Months Ended | ||||||||
| ($ in thousands, except per share & ratios) | Mar. 2026 | Mar. 2025 | % Change | ||||||
| Operating revenue | - | 17,424 | - | 15,386 | 13.2 | - | |||
| Interest income | 19,307 | 17,372 | 11.1 | - | |||||
| Interest expense | 6,595 | 6,093 | 8.2 | - | |||||
| Net interest income | 12,712 | 11,279 | 12.7 | - | |||||
| Provision for credit losses | 214 | 387 | 44.7 | - | |||||
| Noninterest income | 4,712 | 4,107 | 14.7 | - | |||||
| Noninterest expense | 11,929 | 12,410 | -3.9 | - | |||||
| Net income | 4,296 | 2,158 | 99.1 | - | |||||
| Adjusted Earnings per diluted share | 0.63 | 0.42 | 50.0 | - | |||||
| Earnings per diluted share | 0.69 | 0.33 | 109.1 | - | |||||
| Adjusted Return on Avg. Assets | 1.01 | - | 0.76 | - | 32.9 | - | |||
| Return on average assets | 1.10 | - | 0.60 | - | 83.3 | - | |||
| Adjusted Return on Avg. Equity | 11.04 | - | 8.35 | - | 32.2 | - | |||
| Return on average equity | 12.04 | - | 6.63 | - | 81.6 | - | |||
"Net income for the first quarter of 2026 was $4.3 million, a 99.1 percent increase from the prior-year quarter, with GAAP DEPS of $0.69, up 109.1 percent from the prior-year period," said Mark A. Klein, Chairman, President, and Chief Executive Officer. "This marks our 61st consecutive quarter of profitability and reflects the continued benefits of not only the Marblehead acquisition, but the wider margins and robust balance sheet growth we experienced over the last four quarters."
For the quarter, net interest income increased to $12.7 million, up 12.7 percent from the prior-year quarter, primarily driven by solid loan growth, higher loan yields, and stable funding costs. Total loans increased $92.9 million from the prior-year quarter and $544,000 from the linked quarter. Total deposits at quarter end increased $100.6 million, or 7.9% percent, to $1.37 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across our markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of our diversified revenue business model.
RESULTS OF OPERATIONS
In the first quarter of 2026, total operating revenue increased to $17.4 million, up 13.2 percent from $15.4 million in the prior-year quarter and 6.1 percent from $16.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income and improved noninterest income, partially offset by a modest increase in total interest expense. Net interest income for the quarter totaled $12.7 million, compared to $11.3 million in the prior-year period and consistent with $12.7 million in the linked quarter. The year-over-year improvement was driven by an increase in interest income on loans, which increased by 13 percent, rising from $15.4 million in the prior-year quarter to $17.3 million. Total interest expense increased modestly from the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin increased approximately 8 basis points from 3.41 percent in the prior-year quarter to 3.49 percent.
Mortgage Loan Business
Net mortgage banking revenue for the quarter reached $1.8 million, an increase of $369,000 from the prior-year quarter. Loan servicing fees added $928,000 to revenue, reflecting an increase of $34,000 from the prior-year quarter. The OMSR net valuation adjustment for the first quarter of 2026 was a recapture of $452,000, compared to a recapture of $11,000 in the first quarter of 2025.
| Mortgage Banking | ||||||||||||||||||||
| ($ in thousands) | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Mar. 2025 | Prior Year Growth | ||||||||||||||
| Mortgage originations | - | 65,768 | - | 72,398 | - | 67,609 | - | 97,901 | - | 39,775 | - | 25,993 | ||||||||
| Mortgage sales | 53,420 | 70,361 | 66,408 | 74,313 | 39,279 | 14,141 | ||||||||||||||
| Mortgage servicing portfolio | 1,482,052 | 1,479,982 | 1,470,360 | 1,456,374 | 1,432,184 | 49,868 | ||||||||||||||
| Mortgage servicing rights | 15,728 | 15,254 | 15,347 | 15,458 | 14,965 | 763 | ||||||||||||||
| Revenue | ||||||||||||||||||||
| Loan servicing fees | 928 | 928 | 914 | 904 | 894 | 34 | ||||||||||||||
| OMSR amortization | (529 | - | (572 | - | (455 | - | (469 | - | (294 | - | (235 | - | ||||||||
| Net administrative fees | 399 | 356 | 459 | 435 | 600 | (201 | - | |||||||||||||
| OMSR valuation adjustment | 452 | (157 | - | (301 | - | 159 | 11 | 441 | ||||||||||||
| Net loan servicing fees | 851 | 199 | 158 | 594 | 611 | 240 | ||||||||||||||
| Gain on sale of mortgages | 978 | 1,272 | 1,328 | 1,566 | 849 | 129 | ||||||||||||||
| Mortgage banking revenue, net | - | 1,829 | - | 1,471 | - | 1,486 | - | 2,160 | - | 1,460 | - | 369 | ||||||||
Noninterest Income and Noninterest Expense
"Noninterest income for the first quarter of 2026 totaled $4.7 million, an increase of $605,000, or 14.7 percent, from the prior-year quarter, primarily driven by higher mortgage loan servicing fees, increased gains on sale of mortgage loans, and stronger gain on sale of non-mortgage loans, partially offset by a $97,000 decrease in other noninterest income. The year-over-year improvement reflects the Company's continued progress in strengthening the diversity of its noninterest revenue base," Mr. Klein noted.
| Noninterest Income/Noninterest Expense | |||||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Mar. 2025 | Prior Year Growth | |||||||||||||||
| Noninterest Income (NII) | - | 4,712 | - | 3,708 | - | 4,244 | - | 5,048 | - | 4,107 | - | 605 | |||||||||
| NII / Total Revenue | 27.0 | - | 22.6 | - | 25.6 | - | 29.4 | - | 26.7 | - | 0.3 | - | |||||||||
| NII / Average Assets | 1.2 | - | 1.0 | - | 1.1 | - | 1.4 | - | 1.1 | - | 0.1 | - | |||||||||
| Total Revenue Growth | 13.3 | - | 6.3 | - | 15.9 | - | 22.3 | - | 17.2 | - | -3.9 | - | |||||||||
| Noninterest Expense (NIE) | - | 11,929 | - | 11,239 | - | 11,498 | - | 11,852 | - | 12,410 | - | (481 | - | ||||||||
| Efficiency Ratio | 68.1 | - | 68.1 | - | 69.0 | - | 68.9 | - | 80.0 | - | -11.9 | - | |||||||||
| NIE / Average Assets | 3.1 | - | 2.9 | - | 3.0 | - | 3.2 | - | 3.4 | - | -0.3 | - | |||||||||
| Net Noninterest Expense/Avg. Assets | -1.9 | - | -1.9 | - | -1.9 | - | -1.8 | - | -2.3 | - | 0.4 | - | |||||||||
| Total Expense Growth | -3.9 | - | 2.1 | - | 4.5 | - | 11.1 | - | 20.7 | - | -24.6 | - | |||||||||
Noninterest expense for the first quarter of 2026 totaled $11.9 million, a decrease of 3.9 percent from the prior-year quarter, driven primarily by lower data processing expense of $713,000 due to the 2025 merger expenses and a reduction in salaries and employee benefits of $141,000. These decreases were partially offset by higher marketing expense of $112,000 and a modest increase in state, local and other taxes of $64,000. "We remain focused on maintaining disciplined control over noninterest expense. Our efficiency ratio for the first quarter of 2026 was 68.12 percent, a strong improvement from the prior-year period and largely consistent with the linked quarter, reflecting continued discipline in expense management as we balanced targeted investments with revenue performance," stated Mr. Klein.
Balance Sheet
As of March 31, 2026, SB Financial reported total assets of $1.60 billion, an increase of $59.2 million from December 31, 2025, and $103.6 million, or 6.9 percent, from March 31, 2025. The year-over-year increase reflects continued growth in the loan portfolio, as well as the ongoing benefit of the Marblehead acquisition, which has further expanded the Company's market presence and funding base in Northern Ohio. Cash increased by $21.1 million from the prior-year period to $126.3 million, driven by deposit growth and investment portfolio runoff. Key metrics for the quarter included a loan-to-deposit ratio of 86.10 percent and a loan-to-asset ratio of 73.6 percent, both of which remained within the Company's target range.
Total deposits at quarter end increased to $1.37 billion, up $100.6 million, or 7.9 percent, from the prior-year quarter, reflecting continued organic deposit growth and stable client relationships across the franchise. Shareholders' equity totaled $143.7 million at quarter end, representing an increase of $12.1 million, or 9.2 percent, from the prior-year period, equivalent to an increase of $2.81 per share.
During the first quarter, SB Financial repurchased approximately 29,000 shares, a slight decrease from the prior quarter, reflecting management's disciplined capital deployment and its assessment of market conditions and capital priorities during the period. The Company remains focused on a balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases while maintaining flexibility to support organic growth, strategic opportunities, and capital strength.
"As we enter the second quarter of 2026, we believe the Company is operating from a position of strength, supported by a solid balance sheet, healthy credit metrics, and a stable funding base," said Mr. Klein. "Loan growth over the past year reflects steady client activity and disciplined execution across our markets, while reserve coverage and overall credit performance remained sound during the quarter. We continue to benefit from a diversified business model and a consistent approach to capital management, which we believe positions us well to support prudent growth and long-term shareholder value."
| Loan Balances | ||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Mar. 2025 | Annual Growth | ||||||||||||
| Commercial | - | 111,606 | - | 113,878 | - | 117,581 | - | 118,984 | - | 125,878 | - | (14,272 | - | |||||
| % of Total | 9.4 | - | 9.6 | - | 10.6 | - | 10.9 | - | 11.6 | - | -11.3 | - | ||||||
| Commercial RE | 601,678 | 596,983 | 535,307 | 525,671 | 509,518 | 92,160 | ||||||||||||
| % of Total | 50.9 | - | 50.6 | - | 48.2 | - | 48.0 | - | 46.8 | - | 18.1 | - | ||||||
| Agriculture | 78,297 | 76,514 | 65,150 | 60,924 | 61,443 | 16,854 | ||||||||||||
| % of Total | 6.6 | - | 6.5 | - | 5.9 | - | 5.6 | - | 5.6 | - | 27.4 | - | ||||||
| Residential RE | 300,491 | 304,741 | 309,140 | 310,126 | 319,307 | (18,816 | - | |||||||||||
| % of Total | 25.4 | - | 25.8 | - | 27.8 | - | 28.3 | - | 29.3 | - | -5.9 | - | ||||||
| Consumer & Other | 89,063 | 88,475 | 83,367 | 79,014 | 72,128 | 16,935 | ||||||||||||
| % of Total | 7.5 | - | 7.5 | - | 7.5 | - | 7.2 | - | 6.6 | - | 23.5 | - | ||||||
| Total Loans | - | 1,181,135 | - | 1,180,591 | - | 1,110,545 | - | 1,094,719 | - | 1,088,274 | - | 92,861 | ||||||
| Total Growth Percentage | 8.5 | - | ||||||||||||||||
| Deposit Balances | ||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Mar. 2025 | Annual Growth | ||||||||||||
| Non-Int DDA | - | 248,239 | - | 254,063 | - | 246,725 | - | 241,245 | - | 240,446 | - | 7,793 | ||||||
| % of Total | 18.1 | - | 19.4 | - | 19.5 | - | 19.3 | - | 18.9 | - | 3.2 | - | ||||||
| Interest DDA | 215,594 | 202,501 | 194,420 | 205,581 | 208,583 | 7,011 | ||||||||||||
| % of Total | 15.7 | - | 15.5 | - | 15.4 | - | 16.4 | - | 16.4 | - | 3.4 | - | ||||||
| Savings | 333,662 | 296,484 | 290,111 | 282,311 | 285,902 | 47,760 | ||||||||||||
| % of Total | 24.3 | - | 22.7 | - | 23.0 | - | 22.6 | - | 22.5 | - | 16.7 | - | ||||||
| Money Market | 300,028 | 280,896 | 261,953 | 249,536 | 257,013 | 43,015 | ||||||||||||
| % of Total | 21.9 | - | 21.5 | - | 20.7 | - | 20.0 | - | 20.2 | - | 16.7 | - | ||||||
| Time Deposits | 274,300 | 273,300 | 269,313 | 271,149 | 279,276 | (4,976 | - | |||||||||||
| % of Total | 20.0 | - | 20.9 | - | 21.3 | - | 21.7 | - | 22.0 | - | -1.8 | - | ||||||
| Total Deposits | - | 1,371,823 | - | 1,307,244 | - | 1,262,522 | - | 1,249,822 | - | 1,271,220 | - | 100,603 | ||||||
| Total Growth Percentage | 7.9 | - | ||||||||||||||||
Asset Quality
As of March 31, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.8 million representing 0.30 percent of total assets, a decrease of $1.4 million from $6.1 million, or 0.41 percent of total assets in the prior-year quarter, and a modest increase from the linked quarter, which reported nonperforming assets of $4.7 million, or 0.30 percent of total assets. The allowance for credit losses remained strong at 1.39 percent of total loans, providing coverage of 432.2 percent of nonperforming loans. This level was broadly consistent with the linked quarter and represented an improvement from the prior-year period, reflecting the Company's disciplined credit risk framework. Net loan charge-offs to average loans remained modest at 1 basis point, compared to 4 basis points in the linked quarter and 3 basis points in the prior-year quarter. Collectively, these metrics reflect SB Financial's continued emphasis on disciplined underwriting and effective credit administration.
"Our credit results this quarter continued to reflect stability across the loan portfolio and disciplined management of problem assets," said Mr. Klein. "While nonperforming assets increased modestly from the linked quarter, overall credit performance remained sound, and reserve coverage continued to reflect our conservative approach to risk management. We remain focused on disciplined underwriting and proactive credit administration as we support measured growth across our markets."
| Nonperforming Assets | Annual Change | ||||||||||||||||||
| ($ in thousands, except ratios) | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Mar. 2025 | ||||||||||||||
| Commercial & Agriculture | - | 1,357 | - | 2,256 | - | 2,243 | - | 3,306 | - | 3,418 | - | (2,061 | - | ||||||
| % of Total Com./Ag. loans | 0.71 | - | 1.18 | - | 1.23 | - | 1.84 | - | 1.82 | - | -60.3 | - | |||||||
| Commercial RE | 764 | 771 | 778 | 784 | 798 | (34 | - | ||||||||||||
| % of Total CRE loans | 0.13 | - | 0.13 | - | 0.15 | - | 0.15 | - | 0.16 | - | -4.3 | - | |||||||
| Residential RE | 1,431 | 1,322 | 1,400 | 1,585 | 1,608 | (177 | - | ||||||||||||
| % of Total Res. RE loans | 0.48 | - | 0.43 | - | 0.45 | - | 0.51 | - | 0.50 | - | -11.0 | - | |||||||
| Consumer & Other | 240 | 230 | 195 | 197 | 227 | 13 | |||||||||||||
| % of Total Con./Oth. loans | 0.27 | - | 0.26 | - | 0.23 | - | 0.25 | - | 0.31 | - | 5.7 | - | |||||||
| Total Nonaccruing Loans | 3,792 | 4,579 | 4,616 | 5,872 | 6,051 | (2,259 | - | ||||||||||||
| % of Total loans | 0.32 | - | 0.39 | - | 0.42 | - | 0.54 | - | 0.56 | - | -37.3 | - | |||||||
| Foreclosed Assets and Other Assets | 974 | 104 | 237 | 284 | 73 | 901 | |||||||||||||
| Total Change (%) | N/M | ||||||||||||||||||
| Total Nonperforming Assets | - | 4,766 | - | 4,683 | - | 4,853 | - | 6,156 | - | 6,124 | - | (1,358 | - | ||||||
| % of Total assets | 0.30 | - | 0.30 | - | 0.32 | - | 0.41 | - | 0.41 | - | -22.18 | - | |||||||
Webcast and Conference Call
The Company will hold the first quarter 2026 earnings conference call and webcast on April 24, 2026, at 11:00 a.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 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) | 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Cash and due from banks | - | 126,293 | - | 71,543 | - | 85,025 | - | 79,463 | - | 105,145 | |||||||||||||
| Interest bearing time deposits | 1,965 | 1,140 | 2,025 | 1,565 | 1,565 | ||||||||||||||||||
| Available-for-sale securities | 183,876 | 188,626 | 193,190 | 195,955 | 199,721 | ||||||||||||||||||
| Loans held for sale | 7,203 | 1,761 | 4,736 | 12,774 | 4,286 | ||||||||||||||||||
| Loans, net of unearned income | 1,181,135 | 1,180,591 | 1,110,545 | 1,094,719 | 1,088,274 | ||||||||||||||||||
| Allowance for credit losses | (16,388 | - | (16,114 | - | (15,943 | - | (15,645 | - | (15,391 | - | |||||||||||||
| Premises and equipment, net | 21,295 | 21,688 | 21,764 | 21,857 | 21,875 | ||||||||||||||||||
| Federal Reserve and FHLB Stock, at cost | 5,463 | 5,610 | 5,466 | 5,466 | 5,340 | ||||||||||||||||||
| Foreclosed assets | 974 | 104 | 237 | 284 | 73 | ||||||||||||||||||
| Interest receivable | 5,499 | 5,490 | 5,455 | 5,299 | 5,072 | ||||||||||||||||||
| Goodwill | 27,158 | 27,158 | 27,158 | 27,158 | 27,158 | ||||||||||||||||||
| Cash value of life insurance | 32,401 | 32,208 | 32,004 | 31,060 | 30,871 | ||||||||||||||||||
| Mortgage servicing rights | 15,728 | 15,254 | 15,347 | 15,458 | 14,965 | ||||||||||||||||||
| Other assets | 11,996 | 10,308 | 9,254 | 10,888 | 12,048 | ||||||||||||||||||
| Total assets | - | 1,604,598 | - | 1,545,367 | - | 1,496,263 | - | 1,486,301 | - | 1,501,002 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
| Deposits | |||||||||||||||||||||||
| Non interest bearing demand | - | 248,239 | - | 254,063 | - | 246,725 | - | 241,245 | - | 240,446 | |||||||||||||
| Interest bearing demand | 215,594 | 202,501 | 194,420 | 205,581 | 208,583 | ||||||||||||||||||
| Savings | 333,662 | 296,484 | 290,111 | 282,311 | 285,902 | ||||||||||||||||||
| Money market | 300,028 | 280,896 | 261,953 | 249,536 | 257,013 | ||||||||||||||||||
| Time deposits | 274,300 | 273,300 | 269,313 | 271,149 | 279,276 | ||||||||||||||||||
| Total deposits | 1,371,823 | 1,307,244 | 1,262,522 | 1,249,822 | 1,271,220 | ||||||||||||||||||
| Short-term borrowings | 9,433 | 9,230 | 10,976 | 15,640 | 11,058 | ||||||||||||||||||
| Federal Home Loan Bank advances | 27,500 | 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 | 19,751 | 19,739 | 19,726 | 19,715 | 19,702 | ||||||||||||||||||
| Interest payable | 2,553 | 2,460 | 2,739 | 2,258 | 2,634 | ||||||||||||||||||
| Other liabilities | 19,573 | 20,148 | 18,051 | 19,908 | 19,552 | ||||||||||||||||||
| Total liabilities | 1,460,943 | 1,404,131 | 1,359,324 | 1,352,653 | 1,369,476 | ||||||||||||||||||
| Shareholders' Equity | |||||||||||||||||||||||
| Common stock | 61,319 | 61,319 | 61,319 | 61,319 | 61,319 | ||||||||||||||||||
| Additional paid-in capital | 15,065 | 15,160 | 15,086 | 15,139 | 14,955 | ||||||||||||||||||
| Retained earnings | 129,631 | 126,311 | 123,370 | 120,273 | 117,397 | ||||||||||||||||||
| Accumulated other comprehensive loss | (21,861 | - | (21,481 | - | (23,412 | - | (25,492 | - | (26,872 | - | |||||||||||||
| Treasury stock | (40,499 | - | (40,073 | - | (39,424 | - | (37,591 | - | (35,273 | - | |||||||||||||
| Total shareholders' equity | 143,655 | 141,236 | 136,939 | 133,648 | 131,526 | ||||||||||||||||||
| Total liabilities and shareholders' equity | - | 1,604,598 | - | 1,545,367 | - | 1,496,263 | - | 1,486,301 | - | 1,501,002 | |||||||||||||
| 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 | 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||
| Loans | ||||||||||||||
| Taxable | $ 17,246 | $ 17,234 | $ 16,449 | $ 16,059 | $ 15,244 | |||||||||
| Tax exempt | 99 | 107 | 117 | 116 | 115 | |||||||||
| Securities | ||||||||||||||
| Taxable | 1,029 | 1,096 | 1,097 | 1,133 | 1,169 | |||||||||
| Tax exempt | 36 | 36 | 35 | 35 | 38 | |||||||||
| Other interest income | 897 | 799 | 1,111 | 1,124 | 806 | |||||||||
| Total interest income | 19,307 | 19,272 | 18,809 | 18,467 | 17,372 | |||||||||
| Interest expense | ||||||||||||||
| Deposits | 5,957 | 5,820 | 5,721 | 5,597 | 5,352 | |||||||||
| Repurchase agreements & other | 14 | 22 | 28 | 21 | 24 | |||||||||
| Federal Home Loan Bank advances | 285 | 370 | 369 | 366 | 362 | |||||||||
| Trust preferred securities | 144 | 154 | 162 | 161 | 160 | |||||||||
| Subordinated debt | 195 | 194 | 195 | 194 | 195 | |||||||||
| Total interest expense | 6,595 | 6,560 | 6,475 | 6,339 | 6,093 | |||||||||
| Net interest income | 12,712 | 12,712 | 12,334 | 12,128 | 11,279 | |||||||||
| Provision for credit losses | 214 | 198 | 124 | 597 | 387 | |||||||||
| Net interest income after provision | ||||||||||||||
| for credit losses | 12,498 | 12,514 | 12,210 | 11,531 | 10,892 | |||||||||
| Noninterest income | ||||||||||||||
| Wealth management fees | 941 | 900 | 912 | 859 | 864 | |||||||||
| Customer service fees | 910 | 892 | 887 | 886 | 879 | |||||||||
| Gain on sale of mtg. loans & OMSR | 978 | 1,272 | 1,328 | 1,566 | 849 | |||||||||
| Mortgage loan servicing fees, net | 851 | 199 | 158 | 594 | 611 | |||||||||
| Gain on sale of non-mortgage loans | 144 | 38 | 8 | 82 | 15 | |||||||||
| Title insurance revenue | 485 | 525 | 544 | 582 | 397 | |||||||||
| Gain (loss) on sale of assets | 8 | - | - | - | - | |||||||||
| Other | 395 | (118) | 407 | 479 | 492 | |||||||||
| Total noninterest income | 4,712 | 3,708 | 4,244 | 5,048 | 4,107 | |||||||||
| Noninterest expense | ||||||||||||||
| Salaries and employee benefits | 6,096 | 6,047 | 6,198 | 6,595 | 6,237 | |||||||||
| Net occupancy expense | 882 | 822 | 801 | 793 | 893 | |||||||||
| Equipment expense | 1,244 | 1,154 | 1,188 | 1,121 | 1,072 | |||||||||
| Data processing fees | 726 | 790 | 723 | 888 | 1,439 | |||||||||
| Professional fees | 1,016 | 805 | 863 | 892 | 1,034 | |||||||||
| Marketing expense | 277 | 122 | 174 | 190 | 165 | |||||||||
| Telephone and communication expense | 118 | 124 | 123 | 125 | 139 | |||||||||
| Postage and delivery expense | 187 | 140 | 157 | 107 | 137 | |||||||||
| State, local and other taxes | 288 | 331 | 268 | 268 | 224 | |||||||||
| Employee expense | 184 | 158 | 255 | 176 | 174 | |||||||||
| Other expenses | 911 | 746 | 748 | 697 | 896 | |||||||||
| Total noninterest expense | 11,929 | 11,239 | 11,498 | 11,852 | 12,410 | |||||||||
| Income before income tax expense | 5,281 | 4,983 | 4,956 | 4,727 | 2,589 | |||||||||
| Income tax expense | 985 | 1,065 | 910 | 875 | 431 | |||||||||
| Net income | $ 4,296 | $ 3,918 | $ 4,046 | $ 3,852 | $ 2,158 | |||||||||
| Common share data: | ||||||||||||||
| Basic earnings per common share | $ 0.69 | $ 0.63 | $ 0.64 | $ 0.60 | $ 0.33 | |||||||||
| Diluted earnings per common share | $ 0.69 | $ 0.63 | $ 0.64 | $ 0.60 | $ 0.33 | |||||||||
| Average shares outstanding (in thousands): | ||||||||||||||
| Basic: | 6,230 | 6,252 | 6,297 | 6,448 | 6,481 | |||||||||
| Diluted: | 6,243 | 6,266 | 6,311 | 6,459 | 6,502 | |||||||||
| 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 | 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||||
| Net interest income | - | 12,712 | - | 12,712 | - | 12,334 | - | 12,128 | - | 11,279 | |||||||||||||
| Tax-equivalent adjustment | 36 | 38 | 40 | 40 | 41 | ||||||||||||||||||
| Tax-equivalent net interest income | 12,748 | 12,750 | 12,374 | 12,168 | 11,320 | ||||||||||||||||||
| Provision for credit loss | 214 | 198 | 124 | 597 | 387 | ||||||||||||||||||
| Noninterest income | 4,712 | 3,708 | 4,244 | 5,048 | 4,107 | ||||||||||||||||||
| Total operating revenue | 17,424 | 16,420 | 16,578 | 17,176 | 15,386 | ||||||||||||||||||
| Noninterest expense | 11,929 | 11,239 | 11,498 | 11,852 | 12,410 | ||||||||||||||||||
| Pre-tax pre-provision income | 5,495 | 5,181 | 5,080 | 5,324 | 2,976 | ||||||||||||||||||
| Net income | 4,296 | 3,918 | 4,046 | 3,852 | 2,158 | ||||||||||||||||||
| PER SHARE INFORMATION: | |||||||||||||||||||||||
| Basic earnings per share (EPS) | 0.69 | 0.63 | 0.64 | 0.60 | 0.33 | ||||||||||||||||||
| Diluted earnings per share | 0.69 | 0.63 | 0.64 | 0.60 | 0.33 | ||||||||||||||||||
| Common dividends | 0.155 | 0.155 | 0.150 | 0.150 | 0.145 | ||||||||||||||||||
| Book value per common share | 23.10 | 22.65 | 21.85 | 21.02 | 20.29 | ||||||||||||||||||
| Tangible book value per common share (TBV) | 18.45 | 18.00 | 17.21 | 16.44 | 15.79 | ||||||||||||||||||
| Market price per common share | 21.00 | 22.27 | 19.29 | 19.10 | 20.82 | ||||||||||||||||||
| Market price to TBV | 113.8 | - | 123.7 | - | 112.1 | - | 116.2 | - | 131.8 | - | |||||||||||||
| Market price to trailing 12 month EPS | 8.2 | 10.1 | 9.1 | 10.4 | 12.2 | ||||||||||||||||||
| PERFORMANCE RATIOS: | |||||||||||||||||||||||
| Return on average assets (ROAA) | 1.10 | - | 1.01 | - | 1.07 | - | 1.03 | - | 0.60 | - | |||||||||||||
| Pre-tax pre-provision ROAA | 1.41 | - | 1.34 | - | 1.34 | - | 1.42 | - | 0.83 | - | |||||||||||||
| Return on average equity (ROE) | 12.04 | - | 11.08 | - | 12.08 | - | 11.67 | - | 6.63 | - | |||||||||||||
| Return on average tangible equity | 15.06 | - | 13.97 | - | 15.47 | - | 14.97 | - | 8.32 | - | |||||||||||||
| Efficiency ratio | 68.12 | - | 68.09 | - | 69.00 | - | 68.90 | - | 80.00 | - | |||||||||||||
| Earning asset yield | 5.29 | - | 5.32 | - | 5.31 | - | 5.29 | - | 5.23 | - | |||||||||||||
| Cost of interest bearing liabilities | 2.31 | - | 2.34 | - | 2.33 | - | 2.33 | - | 2.32 | - | |||||||||||||
| Net interest margin | 3.48 | - | 3.51 | - | 3.48 | - | 3.48 | - | 3.40 | - | |||||||||||||
| Tax equivalent effect | 0.01 | - | 0.01 | - | 0.02 | - | 0.01 | - | 0.01 | - | |||||||||||||
| Net interest margin, tax equivalent | 3.49 | - | 3.52 | - | 3.50 | - | 3.49 | - | 3.41 | - | |||||||||||||
| Non interest income/Average assets | 1.21 | - | 0.96 | - | 1.12 | - | 1.35 | - | 1.14 | - | |||||||||||||
| Non interest expense/Average assets | 3.06 | - | 2.90 | - | 3.04 | - | 3.17 | - | 3.45 | - | |||||||||||||
| Net noninterest expense/Average assets | -1.85 | - | -1.94 | - | -1.92 | - | -1.82 | - | -2.31 | - | |||||||||||||
| ASSET QUALITY RATIOS: | |||||||||||||||||||||||
| Gross charge-offs | 33 | 133 | 11 | 49 | 86 | ||||||||||||||||||
| Recoveries | 7 | 3 | 9 | 3 | 2 | ||||||||||||||||||
| Net charge-offs | 26 | 130 | 2 | 46 | 84 | ||||||||||||||||||
| Nonperforming loans/Total loans | 0.32 | - | 0.39 | - | 0.42 | - | 0.54 | - | 0.56 | - | |||||||||||||
| Nonperforming assets/Loans & OREO | 0.40 | - | 0.40 | - | 0.44 | - | 0.56 | - | 0.56 | - | |||||||||||||
| Nonperforming assets/Total assets | 0.30 | - | 0.30 | - | 0.32 | - | 0.41 | - | 0.41 | - | |||||||||||||
| Allowance for credit loss/Nonperforming loans | 432.17 | - | 351.91 | - | 345.39 | - | 266.43 | - | 254.35 | - | |||||||||||||
| Allowance for credit loss/Total loans | 1.39 | - | 1.36 | - | 1.44 | - | 1.43 | - | 1.41 | - | |||||||||||||
| Net loan charge-offs/Average loans (ann.) | 0.01 | - | 0.04 | - | 0.00 | - | 0.02 | - | 0.03 | - | |||||||||||||
| CAPITAL & LIQUIDITY RATIOS: | |||||||||||||||||||||||
| Loans/ Deposits | 86.10 | - | 90.31 | - | 87.96 | - | 87.59 | - | 85.61 | - | |||||||||||||
| Equity/ Assets | 8.95 | - | 9.14 | - | 9.15 | - | 8.99 | - | 8.76 | - | |||||||||||||
| Tangible equity/Tangible assets | 7.28 | - | 7.40 | - | 7.35 | - | 7.17 | - | 6.96 | - | |||||||||||||
| Common equity tier 1 ratio (Bank) | 12.06 | - | 11.78 | - | 12.48 | - | 12.53 | - | 12.35 | - | |||||||||||||
| END OF PERIOD BALANCES | |||||||||||||||||||||||
| Total assets | 1,604,598 | 1,545,367 | 1,496,263 | 1,486,301 | 1,501,002 | ||||||||||||||||||
| Total loans | 1,181,135 | 1,180,591 | 1,110,545 | 1,094,719 | 1,088,274 | ||||||||||||||||||
| Deposits | 1,371,823 | 1,307,244 | 1,262,522 | 1,249,822 | 1,271,220 | ||||||||||||||||||
| Shareholders equity | 143,655 | 141,236 | 136,939 | 133,648 | 131,526 | ||||||||||||||||||
| Goodwill and intangibles | 28,929 | 28,989 | 29,048 | 29,107 | 29,125 | ||||||||||||||||||
| Tangible equity | 114,726 | 112,247 | 107,891 | 104,541 | 102,401 | ||||||||||||||||||
| Mortgage servicing portfolio | 1,482,052 | 1,479,982 | 1,470,360 | 1,456,374 | 1,432,184 | ||||||||||||||||||
| Wealth/Brokerage assets under care | 556,930 | 566,004 | 563,036 | 536,836 | 519,158 | ||||||||||||||||||
| Total assets under care | 3,643,580 | 3,591,353 | 3,529,659 | 3,479,511 | 3,452,344 | ||||||||||||||||||
| Full-time equivalent employees | 258 | 252 | 253 | 256 | 262 | ||||||||||||||||||
| Period end common shares outstanding | 6,219 | 6,236 | 6,268 | 6,359 | 6,483 | ||||||||||||||||||
| Market capitalization (all) | 130,597 | 138,883 | 120,907 | 121,453 | 134,982 | ||||||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||||||
| Total assets | 1,579,781 | 1,536,215 | 1,502,389 | 1,498,756 | 1,459,896 | ||||||||||||||||||
| Total earning assets | 1,479,667 | 1,436,207 | 1,404,330 | 1,399,485 | 1,346,354 | ||||||||||||||||||
| Total loans | 1,186,225 | 1,158,567 | 1,104,175 | 1,094,199 | 1,076,328 | ||||||||||||||||||
| Deposits | 1,347,351 | 1,299,512 | 1,270,783 | 1,270,798 | 1,227,449 | ||||||||||||||||||
| Shareholders equity | 144,659 | 140,315 | 132,866 | 132,353 | 131,944 | ||||||||||||||||||
| Goodwill and intangibles | 28,959 | 29,027 | 29,077 | 29,116 | 26,714 | ||||||||||||||||||
| Tangible equity | 115,700 | 111,288 | 103,789 | 103,237 | 105,230 | ||||||||||||||||||
| Average basic shares outstanding | 6,230 | 6,252 | 6,297 | 6,448 | 6,481 | ||||||||||||||||||
| Average diluted shares outstanding | 6,243 | 6,266 | 6,311 | 6,459 | 6,502 | ||||||||||||||||||
| SB FINANCIAL GROUP, INC. | |||||||||||||||||||
| Rate Volume Analysis - (Unaudited) | |||||||||||||||||||
| For the Three Months Ended Mar. 31, 2026 and 2025 | |||||||||||||||||||
| ($ in thousands) | Three Months Ended Mar. 31, 2026 | Three Months Ended Mar. 31, 2025 | |||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||
| Assets | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Taxable securities | - | 187,304 | - | 1,029 | 2.23 | - | - | 196,880 | - | 1,276 | 2.63 | - | |||||||
| Overnight Cash | 100,067 | 897 | 3.64 | - | 66,460 | 699 | 4.27 | - | |||||||||||
| Nontaxable securities | 6,071 | 36 | 2.40 | - | 6,686 | 38 | 2.30 | - | |||||||||||
| Loans, net | 1,186,225 | 17,345 | 5.93 | - | 1,076,328 | 15,359 | 5.79 | - | |||||||||||
| Total earning assets | 1,479,667 | 19,307 | 5.29 | - | 1,346,354 | 17,372 | 5.23 | - | |||||||||||
| Cash on hand | 5,407 | 10,339 | |||||||||||||||||
| Allowance for loan losses | (16,217 | - | (15,238 | - | |||||||||||||||
| Premises and equipment | 21,494 | 21,082 | |||||||||||||||||
| Other assets | 89,430 | 97,359 | |||||||||||||||||
| Total assets | - | 1,579,781 | - | 1,459,896 | |||||||||||||||
| Liabilities | |||||||||||||||||||
| Savings, MMDA and interest bearing demand | - | 813,742 | - | 3,697 | 1.84 | - | - | 709,324 | - | 2,959 | 1.69 | - | |||||||
| Time deposits | 273,832 | 2,260 | 3.35 | - | 276,253 | 2,393 | 3.51 | - | |||||||||||
| Repurchase agreements & other | 10,003 | 14 | 0.57 | - | 13,106 | 24 | 0.74 | - | |||||||||||
| Advances from Federal Home Loan Bank | 28,167 | 285 | 4.10 | - | 35,044 | 362 | 4.19 | - | |||||||||||
| Trust preferred securities | 10,310 | 144 | 5.66 | - | 10,310 | 160 | 6.29 | - | |||||||||||
| Subordinated debt | 19,743 | 195 | 4.01 | - | 19,694 | 195 | 4.02 | - | |||||||||||
| Total interest bearing liabilities | 1,155,797 | 6,595 | 2.31 | - | 1,063,731 | 6,093 | 2.32 | - | |||||||||||
| Non interest bearing demand | 259,777 | - | 241,872 | - | |||||||||||||||
| Total funding | 1,415,574 | 1.89 | - | 1,305,603 | 1.89 | - | |||||||||||||
| Other liabilities | 19,548 | 22,349 | |||||||||||||||||
| Total liabilities | 1,435,122 | 1,327,952 | |||||||||||||||||
| Equity | 144,659 | 131,944 | |||||||||||||||||
| Total liabilities and equity | - | 1,579,781 | - | 1,459,896 | |||||||||||||||
| Net interest income | - | 12,712 | - | 11,279 | |||||||||||||||
| Net interest income as a percent of average interest-earning assets - GAAP measure | 3.48 | - | 3.40 | - | |||||||||||||||
| Net interest income as a percent of average interest-earning assets - non GAAP | 3.49 | - | 3.41 | - | |||||||||||||||
| - Computed on a fully tax equivalent (FTE) basis | |||||||||||||||||||
| Non-GAAP reconciliation | Three Months Ended | ||||
| ($ in thousands, except per share & ratios) | Mar. 31, 2026 | Mar. 31, 2025 | |||
| Total Operating Revenue | $ 17,424 | $ 15,386 | |||
| Adjustment to (deduct)/add OMSR recapture/impairment * | (452) | (11) | |||
| Adjusted Total Operating Revenue | 16,972 | 15,375 | |||
| Total Operating Expense | 11,929 | 12,410 | |||
| Adjustment for merger expenses | - | (726) | |||
| Adjusted Total Operating Expense | 11,929 | 11,684 | |||
| Income before Income Taxes | 5,281 | 2,589 | |||
| Adjustment for OMSR*/Merger Expenses | (452) | 715 | |||
| Adjusted Income before Income Taxes | 4,829 | 3,304 | |||
| Provision for Income Taxes | 985 | 431 | |||
| Adjustment for OMSR/Merger Expenses ** | (95) | 150 | |||
| Adjusted Provision for Income Taxes | 890 | 581 | |||
| Net Income | 4,296 | 2,158 | |||
| Adjustment for OMSR*/Merger Expenses | (357) | 565 | |||
| Adjusted Net Income | 3,939 | 2,723 | |||
| Diluted Earnings per Share | 0.69 | 0.33 | |||
| Adjustment for OMSR*/Merger Expenses | (0.06) | 0.09 | |||
| Adjusted Diluted Earnings per Share | $ 0.63 | $ 0.42 | |||
| Return on Average Assets | 1.10% | 0.60% | |||
| Adjustment for OMSR*/Merger Expenses | -0.09% | 0.15% | |||
| Adjusted Return on Average Assets | 1.01% | 0.75% | |||
| *valuation adjustment to the Company's mortgage servicing rights | |||||
| **tax effect is calculated using a 21% statutory federal corporate income tax rate | |||||
