<SEC-DOCUMENT>0001213900-17-010975.txt : 20171026
<SEC-HEADER>0001213900-17-010975.hdr.sgml : 20171026
<ACCEPTANCE-DATETIME>20171026161247
ACCESSION NUMBER:		0001213900-17-010975
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20171020
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20171026
DATE AS OF CHANGE:		20171026

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SB FINANCIAL GROUP, INC.
		CENTRAL INDEX KEY:			0000767405
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				341395608
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-36785
		FILM NUMBER:		171156442

	BUSINESS ADDRESS:	
		STREET 1:		401 CLINTON ST
		CITY:			DEFIANCE
		STATE:			OH
		ZIP:			43512
		BUSINESS PHONE:		4197838930

	MAIL ADDRESS:	
		STREET 1:		401 CLINTON STREET
		STREET 2:		PO BOX 467
		CITY:			DEFIANCE
		STATE:			OH
		ZIP:			43512

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	RURBAN FINANCIAL CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k102017_sbfinancial.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B><BR>
<B>SECURITIES AND EXCHANGE COMMISSION</B><BR>
<B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B><BR>
<B>Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">Date of Report (Date
of earliest event reported) <U>October 26, 2017 (October 20, 2017)</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 1.5pt solid">SB FINANCIAL
GROUP, INC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; border-bottom: Black 1.5pt solid">Ohio</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 32%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; border-bottom: Black 1.5pt solid">0-13507</TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 32%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; border-bottom: Black 1.5pt solid">34-1395608</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(State or other jurisdiction<BR>
of incorporation)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">File Number)</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(IRS Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%; border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">401 Clinton Street, Defiance, OH</TD>
    <TD STYLE="width: 2%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 49%; border-bottom: Black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">43512</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Address of principal executive offices)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(Zip Code)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">Registrant&rsquo;s
telephone number, including area code <U>(419) 783-8950</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 1.5pt solid">Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name or former address, if changed
since last report.)</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT> Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT> Soliciting material
pursuant to Rule 1 4a- 12 under the Exchange Act (17 CFR 240.1 4a- 12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT> Pre-commencement
communications pursuant to Rule 1 4d-2(b) under the Exchange Act (17 CFR 240.1 4d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Wingdings">o</FONT> Pre-commencement
communications pursuant to Rule 1 3e-4(c) under the Exchange Act (17 CFR 240.1 3e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">Indicate by check mark
whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">Emerging growth company&#9;<FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 36pt">If an emerging growth
company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&#9;<FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Item 2.02</U>. <U>Results of Operations and Financial Condition</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">On October 20, 2017, SB Financial Group,
Inc. (the &ldquo;Company&rdquo;) hosted a conference call and webcast to discuss its financial results for the third quarter ending
September 30, 2017. A copy of the transcript for the conference call and webcast is furnished as Exhibit 99.1 and is incorporated
herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 36pt; text-align: justify">The information in this Item 2.02, including
Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be &ldquo;filed&rdquo; for purposes of Section
18 of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;) or otherwise subject to the liabilities of that Section,
nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under
the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Item 9.01</U>. <U>Financial Statements and Exhibits</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a) Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b) Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c) Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 9%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt">Exhibit No.</FONT></TD>
    <TD STYLE="width: 1%; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 90%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-align: center"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="f8k102017ex99-1_sbfinancial.htm">Transcript of conference call and webcast conducted on October 20, 2017.</A></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 72pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SIGNATURE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SB FINANCIAL GROUP, INC.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated: October 26, 2017</FONT></TD>
    <TD STYLE="width: 4%; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 36%; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Anthony V. Cosentino</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anthony V. Cosentino</FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">INDEX TO EXHIBITS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">Current Report
on Form 8-K</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">Dated
October 26, 2017</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">SB Financial
Group, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0"><FONT STYLE="font-size: 10pt">Exhibit No.</FONT></TD>
    <TD STYLE="width: 1%; padding: 0 0 1.5pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 90%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-align: center"><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><A HREF="f8k102017ex99-1_sbfinancial.htm">Transcript of conference call and webcast conducted on October 20, 2017.</A></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">-4-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 72pt; text-align: center; text-indent: -72pt">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>f8k102017ex99-1_sbfinancial.htm
<DESCRIPTION>TRANSCRIPT OF CONFERENCE CALL AND WEBCAST CONDUCTED ON OCTOBER 20, 2017
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B><U>Exhibit 99.1</U></B></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

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    <TD STYLE="width: 100%; border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">SB Financial Group</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">Third Quarter 2017 Financial Results</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">Friday, October 20, 2017, 11:00 AM Eastern</FONT></TD></TR>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>CORPORATE PARTICIPANTS</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Melissa Martin</B> - <I>Investor Relations</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Mark Klein - </B><I>President and Chief
        Executive Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tony Cosentino &ndash; </B><I>Executive
        Vice President and Chief Financial Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PRESENTATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Operator</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Good morning and welcome to the SB Financial
Group Third Quarter 2017 Conference Call and Webcast. I would like to inform you that this conference call is being recorded and
that all participants are in a listen-only mode. We will begin with remarks by management and then open the conference up to the
investment community for questions and answers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">I will now turn the conference over to
Melissa Martin with SB Financial. Please go ahead, Melissa.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Melissa Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Good morning everyone. I would like to
remind you that this conference call is being broadcast live over the Internet and will be archived and available on our website
at www.yoursbfinancial.com under Investor Relations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Joining me today are Mark Klein, Chairman,
President, and CEO; Tony Cosentino, Chief Financial Officer; and Jon Gathman, Senior Lending Officer. Before I turn the call over
to Mr. Klein, let me add that this call may contain forward-looking statements regarding SB Financial Group's financial performance,
anticipated plans, operational results, and objectives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Forward-looking statements are based on
management's expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially
from those expressed or implied on our call today. We have identified a number of different factors within the forward-looking
statements at the end of our earnings release and you are encouraged to review those factors. SB Financial Group undertakes no
obligation to update any forward-looking statement except as required by law after the date of this call. In addition to the financial
results presented in accordance with GAAP, this call will also contain certain non-GAAP financial measures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">I will now turn the call over to Mr. Klein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Thank you, Melissa, and good morning everyone.
Welcome to our third quarter 2017 webcast. As you all know, we filed our earnings release yesterday, and it certainly provides
additional depth and details for a follow up to our comments today.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Highlights for the quarter include GAAP
net income was $2.7 million, a 7% improvement over the prior year quarter, representing a return-on-average asset of 1.27%. Additionally,
it was an 18% improvement over the linked quarter. Net income available to common shares for the quarter was $2.48 million, or
$0.43 per share, representing a 7.6% improvement over the prior year quarter. Trailing 12 months EPS now stands at $1.48, a 13.8%
improvement over the prior year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loan balances have been robust and have
expanded nearly $24 million, or 3.6%. Top line revenue for the quarter expanded approximately 3.8% from the year ago quarter. Expenses
increased 4.5% from the year ago quarter, reflecting production and regulatory staffing expansions. Expenses in revenue increased
6% from the linked quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assets under management expanded this quarter
to $430 million, a $53 million increase over the prior year quarter, or 14.4%, and a 5.5% increase from the linked quarter. Mortgage
origination volume for the quarter was approximately $89 million, a decline of $28 million from the year ago quarter and a $9 million
reduction from the linked quarter due to lower market activity, reflecting the limited availability of inventory in nearly all
markets. We improved profitability, however, from the linked quarter through better pricing and pipeline management, and over 95%
of our year-to-date production of $243 million has come from new client relationships to State Bank. Asset quality continued to
be a strength of our company. And finally, SBA loan value for the quarter robust at $4.1 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our relentless focus on our five key strategic
initiatives continues to drive our performance. They are, again, revenue diversity, a continued commitment to greater scale to
improve efficiency, greater scope to drive organic balance sheet growth, a deeper bench to deliver that operational excellence
that we seek, and the hallmark of all high-performing banks, that top tier asset quality.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">And now a little more detail on each; first
revenue diversity. We continued to deliver strong non-interest income as a percentage of total revenue. Even though our mortgage
banking business declined this quarter, we still achieved the 40% mark, representing over $13 million year-to-date and a 3% improvement
over the same period last year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our mortgage banking volume declined nearly
9% this past quarter. However, our loan sale gains expanded over 7% from the linked quarter due to better pipeline management that
included our new hedging strategy. This enabled us to deliver better average gain on sale that exceeded 2.8% for the quarter and
now stands at a healthy 2.6% for the year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, our servicing portfolio now
stands at $979 million and approximately $2.4 million in servicing revenue annually from that portfolio. Our strategic goal of
$1 billion is within our reach this year. Our overarching goal is to continue to seek opportunities to expand our presence in this
core business line, with more high producers in both our traditional and expansion markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SBA lending strategy continues to provide
meaningful bottom line improvement. This quarter we produced and sold over $4 million, with loan sale gains over $200,000. As a
result of our third quarter production, we are on track to deliver over $1.2 million in loan sale gains for the year, representing
total SBA production of over $17 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To ensure we remain relevant in the space,
we have strengthened our positioning by expanding our business development officer, or BDO as we call it, presence in new and existing
markets. In addition to our presence in the Columbus footprint, we now have a seasoned BDO in the Cleveland suburb of Westlake,
Ohio. In the fourth quarter, we intend to have additional expertise in the existing higher growth market within our footprint.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success in this arena adds strength
to our revenue diversity strategy and positions us well for continued economic expansion. In fact, we now rank 261st out of the
1,630 banks in the United States that have done an SBA loan, placing us at the 86th percentile and well on our way to our top 100
vision by the year 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also contributing to our strong non-interest
income this quarter was a 5.5% expansion in our assets under care in our wealth management division. This quarter's improvement
made strong contributions to our annual growth of nearly 13% and drove our performance improvement over last year to over 14%.
Our market expansions are providing diversity in our asset base.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While over 47% of our assets under our
care rest in our traditional markets and an additional 24% in our expansion markets of Toledo and Lima, our remaining 29% is evenly
represented in our Columbus, Findlay, and other northwest Ohio markets. Interestingly, over 57% of our year-to-date growth of over
$25 million has come from employees and centers of influence referrals. Our plans are to continue to take market share by attracting
top talent in new and existing markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our second initiative remains to add scale
and improve efficiency. As with prior quarters, our newest office in Findlay, Ohio continues to make significant contributions
to our organic balance sheet growth. Through this quarter, loan balances have expanded to over $37 million, with prospects of continued
growth through a pipeline of over $15 million. Our three year presence in one of Ohio's best markets has provided meaningful organic
balance sheet growth for our company. We have plans to solidify our presence in this market in wealth management and private banking
to further capitalize on our business banking successes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Columbus continues to be one our success
stories, and represents another one of our low-share, high-growth markets for our company. Not only does it provide nearly 59%
of our residential real estate volume, it continues to add significant scale to our organization. This quarter our loan balances
expanded to over $177 million. This region is just now $2 million short of becoming our largest region in our franchise in just
10 short years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To ensure we continue our ascent in this
vibrant market, we recently purchased and remodeled a new loan production office in the upscale eastern suburb of Gahanna. Initially
we will house our mortgage professionals and our SBA officer, but intend to launch an interactive teller machine strategy to not
only utilize our Dublin retail staff more effectively, but to potentially capture additional products and services with our over
4,000 single-service mortgage households.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Overall, commercial loans continue to provide
the majority of the lift in our net interest margin. Because of our $56 million growth over the prior year, our net interest income
expanded 8.9% to over $7.2 million. Growth markets of Columbus, Toledo, and Findlay provide the bulk of our expansion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A new strategy to improve our efficiency,
expand net interest income, and deliver additional revenue diversity is equipment leasing. We recently hired a seasoned executive
in the northeast Indiana region and expect to leverage his expertise into a new business line for State Bank and also add more
diversity to our commercial lending product lineup.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Third is our strategy to deliver greater
scope. That's more households and more services in those households. We continue to add more households and more products and services.
We now claim 28,383 households for an additional 1,000 over year-end, representing a 3.7% improvement. Many of our new households
stem from our mortgage business-line success. Our goal is to acquire new households and leverage the expertise of our other business
lines into those new households and drive products and services to a much higher level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Year-to-date, our on-boarding process and
cross selling efforts have enabled us to expand our number of products to over 57,000, or 2.65% this year, and we&rsquo;ve added
another 2,200 services for a 5.2% expansion. Leveraging our presence in each household continues to be a path to organic balance
sheet growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interdepartmental referrals continue to
drive client retention and shareholder value. This past quarter, we made 591 referrals to our business partners through our proactive
prospecting efforts. As a result of this value-added prospecting, we've provided solutions to 261 of these clients, which represented
over $14.7 million in new business to our company. We continue to provide 100% of what the client needs and nothing more.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Operational excellence is our fourth key
theme I&rsquo;d like to touch on. Our value proposition includes a statement that says: We never expect to lose a client due to
a gap in service levels. This mindset enables us to develop initiatives and a structure that will drive our backroom into a sustainable
competitive advantage. Product specific knowledge resonating from our sales staff coupled with an engaged backroom positions us
to deliver on our value proposition and sets us apart from the competition at every client touch.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The litmus test for this claim lies with
our ability to grow our franchise. For us, this includes our organic balance sheet growth, margin expansion, revenue diversity,
SBA volume, assets under our care, household growth, and a $1 billion servicing portfolio to name a few. We have detailed plans
to continue to drive each to a higher level with more well-defined service level agreements in 2018.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our fifth key initiative is asset quality.
As a top decile performer among our 65 bank peer group, we recognize the value to our stockholders and the significance to our
performance by maintaining a high quality loan portfolio. Our results this quarter and year-to-date reflect this ongoing commitment.
Non-performing assets improved to just 43 basis points, past due loans stand at 0.33%, net charge-offs for the quarter just 1 basis
point, and our allowance to non-performing assets improved this quarter now to over 200%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">I&rsquo;d like to ask Tony Cosentino, our
CFO, now to provide a few more details on our quarterly performance. Tony?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Thanks, Mark, and good morning everyone.
For the quarter, as Mark said, we had net income of $2.7 million, or $0.43 per diluted earnings per share. Our EPS was up $0.03,
or 7.5%, from the prior year and up $0.06, or 16.2%, from the linked quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Some highlights include operating revenue
up 3.8% from the prior year and up 6.1% from the linked quarter; loan growth up $56 million for the prior year, or 9%. Loan sales
delivered gains of $2.5 million all-in for mortgage, small business, and agriculture. And lastly, we continued to reduce our non-performing
ratio, as Mark said, now down to 43 basis points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As we look further in the income statement
starting with margin, net interest income was up from the prior year by 8.9% and up from the linked quarter by 4.3%. End of period
loan balances were up $55.7 million, an increase of 9%. And in the third quarter, we increased our loan balances by $23.5 million.
Average loan yield of 4.6% increased by 5 basis points from the prior year. And overall, earning asset yield was up 7 basis points
compared to the prior year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the funding side, we continue to experience
an increase in the cost of our interest-bearing liabilities, coming in at 68 basis points for the quarter, up 12 basis points from
the prior year and up 4 basis points from the linked quarter. We continue to fund anticipated loan volume with retail deposits
priced at the market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net interest margin, at 3.81%, was down
just 1 basis point from the prior year but was up from the linked quarter by 8 basis points. This reflected higher loan fees compared
to the prior year and linked quarter. And total interest expense costs have risen by nearly 30% from the prior year, with that
variance tied almost exclusively to the increased volume.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Loan activity has influenced margin income
from the prior year with total loan interest income of $7.7 million, up 10%. And over the last four quarters, we have produced
$259 million in gross loan volume. As we discussed last quarter, net loan volume returned again to a more acceptable level, with
balances up $24 million from June 30, equating to a 14.4% annualized growth rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the fee side, total non-interest income
of $4.9 million was down 3.1% from the prior year, but was up 8.9% from the linked quarter. Fee income as a percentage of total
revenue was over 40%, as several one-time revenue item supplemented mortgage loan volume. The one-time items of a BOLI payout and
bond sales increased revenue by $268,000 in the quarter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the quarter, we had mortgage originations
of $89.2 million, down from the prior year by $28 million, or 23.9%, and also down $8.6 million, or 8.8%, from the linked quarter.
New purchase volume in the quarter was 95%. As we&rsquo;ve discussed, the refinance market has slowed considerably with the rise
in interest rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total gains on sale for mortgage came in
at $2.2 million, which was nearly 2.9% on our sold volume of $77 million. For comparison, we achieved 2.5% and 2.6% gain on sale
percentage from the prior year and linked quarter respectively. So despite volume down 24%, better pricing and efficiency have
kept our mortgage banking revenue decline to only 9.9%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mortgage banking revenue in the third quarter
was $2.4 million, down $269,000 from the prior year but up $134,000 from the linked quarter. This quarter included a positive valuation
adjustment to our mortgage servicing rights of $36,000 compared to a positive adjustment last quarter of $39,000, versus a negative
adjustment of $71,000 in the third quarter of 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At September 30th, State Bank had $979
million in its servicing portfolio, providing revenue for the quarter of $605,000. The servicing portfolio has increased by $110.5
million, or 12.7%, from the prior year on sold volume for that period of $289 million. Market value of those servicing rights at
$9.6 million increased this past quarter, reflecting volume and the stable rate environment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Calculated fair value of 98 basis points
was up 19 basis points from the prior year and flat from the linked quarter. Total impairment reserves available for recapture
in future periods totaled $269,000 at quarter end.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total operating expenses this quarter of
$8.3 million were up $0.4 million, or 4.5%, from the prior year. And compared to the linked quarter, expenses were up $0.5 million,
or 6.1%. Total headcount for the company is up 13 since the prior year, reflecting increased staffing in mortgage and commercial
sales in addition to added resources in compliance, loan review, and mortgage administration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the quarter, total operating expense
was up slightly more than our 3.8% revenue growth. However, for the year, operating leverage is positive, with revenue growth of
5.9% exceeding our expense growth rate of 5.6%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As we look now at the balance sheet, loan
balances of September 30 stood at $675.1 million, which is 78.5% of the total assets of the company. We had growth of $55.7 million
from the prior year and growth of $23.5 million from the linked quarter. Compared to the prior year, our loan book grew in nearly
every category, led by commercial real estate with $51 million, followed by C&amp;I of $4 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On the deposit side, we were up from the
prior year by $54.7 million, an 8.3% growth rate, and up from the linked quarter by $9.5 million. Due to the anticipated closings
from our loan pipeline in the fourth quarter, we have been more aggressive on deposit pricing in order to meet these funding needs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Looking at our capital position, we finished
the quarter at $90.9 million, up $4.6 million or 5.4% from the prior year, with an equity-to-asset ratio of 10.6%, which was down
from the prior year, reflecting the growth in our loan book. Tangible common equity ratio is 7.2%, but would increase to 8.8% when
the convertible preferred is included.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regarding asset quality, total non-performing
assets now stand at $3.7 million, or 0.43% of total assets, with 98% of those in non-performing loans. The total level of non-performing
assets is down $0.8 million from the prior year and down $0.2 million to the linked quarter. Included in that non-performing asset
total is $1.3 million in accruing restructured credits. These restructured loans, which are nearly all maturity extensions, elevate
our non-performing level by 15 basis points. Absent these accruing restructured credits, our total non-performing asset ratio would
be just 28 basis points.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We did not set aside provision this quarter,
which was in-line with the prior year. For the year, our $200,000 in provision is in excess of the $165,000 in net charge-offs
incurred thus far in 2017, with net charge-offs for this quarter of $65,000. Our absolute level of loan loss allowance, at $7.8
million, is up from the prior year by $0.4 million or 6%. However, due to loan growth, our allowance-to-total-loan percentage has
declined from 1.18% at September 30, 2016, to 1.15% currently. Because of the reduction in non-performing loans this quarter, we
now have NPL coverage with our allowance of 213%, which is up from the 164% at the prior year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">And in closing, as we look at our year-to-date
results, diluted EPS of $1.11 is up $0.10 per share, or 9.9%. And total assets under our care, including mortgage serviced and
wealth assets, now stands at $2.3 billion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">I&rsquo;ll now turn the call back over
to Mark.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Thank you, Tony. As you&rsquo;ve heard,
we continue our strong performance trend with another solid quarter, clearly highlighted by our ROAA of 1.27%, loan growth of 4%,
$89 million in residential real estate loans, continued excellent loan quality metrics, and SBA loan sale gains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">With more scale in our newer lower-share,
higher-growth markets and a greater scope of services in existing households, our prospects for that covered top decile performance
for the year remains in sight. We are pleased with our third quarter performance and have set the stage clearly for a strong finish
to 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Now, I&rsquo;ll turn the call back to
Melissa for questions and answers. Melissa?</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Melissa Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Thank you, Mark. Operator, we're now ready
for our first question.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>QUESTION AND ANSWER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Operator</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will now begin the question-and-answer
session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick
up your handset before pressing the keys. To withdraw your question, please press star, then two.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At this time, we will pause momentarily
to assemble our roster.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Melissa Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While we're waiting for questions, I would
like to remind you that today's call will be accessible on our website at www.yoursbfinancial.com under Investor Relations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Operator</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At this time we have no questions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Melissa Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">I'll now turn the call back over to Mr.
Klein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>CONCLUSION </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Well, once again, thank you all for joining
us this morning. Again a great quarter. We're pleased with our results. Looking forward to a strong fourth quarter and another
great year for SBFG. We look forward to speaking with you in January and reporting our year-end results. Again, thanks for joining
us. Goodbye.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Operator</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The conference has now concluded. Thank
you for attending today's presentation. You may now disconnect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">6</P>

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