<SEC-DOCUMENT>0001213900-18-009677.txt : 20180726
<SEC-HEADER>0001213900-18-009677.hdr.sgml : 20180726
<ACCEPTANCE-DATETIME>20180726090944
ACCESSION NUMBER:		0001213900-18-009677
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180720
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180726
DATE AS OF CHANGE:		20180726

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:		18970424

	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>f8k072018_sbfinancialgroup.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date
of Report (Date of earliest event reported) <U>July 26, 2018 (July 20, 2018)</U></FONT></P>

<DIV STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SB
FINANCIAL GROUP, INC</FONT></P>

</DIV>

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

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

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

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

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

<DIV STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
Applicable</FONT></P>

</DIV>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Soliciting
material pursuant to Rule 1 4a- 12 under the Exchange Act (17 CFR 240.1 4a- 12)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pre-commencement
communications pursuant to Rule 1 4d-2(b) under the Exchange Act (17 CFR 240.1 4d-2(b))</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#9744;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pre-commencement
communications pursuant to Rule 1 3e-4(c) under the Exchange Act (17 CFR 240.1 3e-4(c))</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging
growth company&#9;&#9744;&nbsp;&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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;&#9744;&nbsp;&nbsp;</FONT></P>

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

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

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




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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 20, 2018, SB Financial Group, Inc. (the &ldquo;Company&rdquo;) hosted a conference call and webcast to discuss its financial
results for the second quarter ending June 30, 2018. A copy of the transcript for the conference call and webcast is furnished
as Exhibit 99.1 and is incorporated herein by reference.</FONT></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <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: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit
    No.</FONT></TD>
    <TD STYLE="width: 1%; padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><A HREF="f8k072018ex99-1_sbfinancial.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transcript of conference call and webcast conducted on July 20, 2018.</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>




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

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

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

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

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

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

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<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SB
    FINANCIAL GROUP, INC.</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif; width: 36%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:&nbsp;&nbsp;July
    26, 2018</FONT></TD>
    <TD STYLE="padding: 0 0 1.5pt; font: 10pt Times New Roman, Times, Serif; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Anthony V. Cosentino</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anthony
    V. Cosentino</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Financial Officer</FONT></TD>
    </TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INDEX
TO EXHIBITS</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated
July 26, 2018</FONT></P>

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

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

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

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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: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit
    No.</FONT></TD>
    <TD STYLE="width: 1%; padding: 0 0 1.5pt; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; padding-top: 0; padding-right: 0; border-bottom: Black 1.5pt solid; padding-left: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; text-align: center; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0; font: 10pt Times New Roman, Times, Serif"><A HREF="f8k072018ex99-1_sbfinancial.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transcript of conference call and webcast conducted on July 20, 2018.</FONT></A></TD></TR>
</TABLE>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>f8k072018ex99-1_sbfinancial.htm
<DESCRIPTION>TRANSCRIPT OF CONFERENCE CALL AND WEBCAST CONDUCTED ON JULY 20, 2018
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Exhibit
99.1</U></B></FONT></P>

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

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

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    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">SB
    Financial Group</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Q2
    2018 Financial Results</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-size: 12pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt">Friday,
    July 20, 2018, 11:00 AM Eastern</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CORPORATE PARTICIPANTS</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Melissa Martin</B> - <I>Investor Relations</I></FONT></TD></TR>
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    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
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    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mark Klein</B> - <I>Chairman, President, Chief Executive Officer</I></FONT></TD></TR>
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    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Tony Cosentino</B> - <I>Executive Vice President, Chief Financial Officer</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0 0 0 4pt; font-size: 10pt; text-indent: 0; border-left: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Jon Gathman</B> - <I>Executive Vice President, Senior Lender </I></FONT></TD></TR>
</TABLE>


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




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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Good
day, and welcome to the SB Financial second-quarter 2018 financial results conference call. All participants will be in listen-only
mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today&rsquo;s
presentation there will be an opportunity to ask questions. To ask a question you may press star, then one on a touchtone phone.
To withdraw your question please press star, then two. Please note this event is being recorded.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Good
morning, everyone. I would like to remind you 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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Joining
me today are Mark Klein, Chairman, President and CEO; Tony Cosentino, Chief Financial Officer; and Jon Gathman, Senior Lending
Officer. This call may contain forward-looking statements regarding SB Financial&rsquo;s performance, anticipated plans, operational
results and objectives. Forward-looking statements are based on management&rsquo;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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have identified a number of different factors within the forward-looking statements at the end of our earnings release, which
you are encouraged to review. SB Financial undertakes no obligation to update any forward-looking statement except as required
by law after the date of this call. In addition to financial results presented in accordance with GAAP, this call will also contain
certain non-GAAP financial measures. I will now turn the call over to Mr. Klein.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Thank
you, Melissa, and good morning, everyone. Nice to have you all with us. Welcome to our second-quarter 2018 webcast. Our comments
this morning are supplemented by the earnings release that we filed yesterday.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Briefly,
highlights for the quarter include net income, $3.1 million, a 34% improvement over the prior-year quarter, representing a return
on average assets of 1.35% or a 23.9% increase. Diluted EPS for the quarter of $0.40 per share represented an 8% improvement over
the prior-year quarter. Trailing 12 months EPS now stands at $1.82, a 26% improvement over the prior year of $1.44. Operating
revenue expanded over $1.2 million, or 11%. Loan balances expanded over $46 million, or 6.4% from the linked quarter and nearly
$102 million or 15.6% from the year ago quarter. Deposits likewise grew just slightly from the linked quarter, but nearly $46
million, or 6.5% from the year ago quarter.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Expenses
and support were down from the linked quarter but up 9.9% from the prior year. Mortgage origination volume was up $51 million,
or 87% from the linked quarter to $109.5 million and up nearly $12 million, or 12% from the year ago quarter. Asset quality, a
common theme with our company, continued to be one of our competitive strengths. SBA loan volume, finally, slowed a bit from our
strong first quarter, but we still originated nearly $1 million, and our activity reflects strength in each of our higher growth
markets.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
continue on our steady course to deliver our five key strategic initiatives. We&rsquo;ve discussed them every quarter. It&rsquo;s
all about the revenue diversity, organic growth to deliver scale and efficiency, a broader product set in not only new households,
but existing ones as well, world-class operational excellence, and, of course, the top-tier asset quality that we&rsquo;ve mentioned
quarter after quarter.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">And
now a bit of expansion and color on each. First, revenue diversity. This quarter we delivered over 34% of our revenue from fee-based
business line. It was down slightly from the linked quarter and a bit lower from our historical 40% level. Our results were also
down 5% from the year ago quarter. Adjusting for the sale of DCM, which we completed on January 1 of this year and discussed earlier,
fee income would be up 11% from the linked quarter and flat to the year ago quarter. This quarter saw a marked improvement in
mortgage volume, as I mentioned, albeit a bit more of our variable-rate portfolio product. SBA lending was a bit slower this quarter,
as I mentioned, although our year-to-date results of nearly $12 million in volume is clearly in line with our expectations through
six months. Pipelines in both mortgage and SBA remain solid.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Despite
limited housing inventory for sale in nearly all markets, a constraint we&rsquo;ve discussed for several quarters now, coupled
with marginally higher rates, our net mortgage banking revenue of $2.3 million was level with the year ago quarter. We managed
to expand our servicing portfolio now to $1.03 billion, representing a growth over the prior-year quarter of nearly $80 million.
This past quarter we generated $109 million in production, as I mentioned. Columbus generated the bulk of that volume at $62 million.
Defiance, Northwest Ohio, and Northeast Indiana $28 million, and West Central Ohio Findlay produced another $19 million. We are
using this business line as the key gateway to the household, and then deploying our retail staff to begin developing a much deeper
relationship.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
have recently hired an additional mortgage lender in the Northeast Indiana market in addition to the two MLOs we added in the
first quarter in our Columbus, Ohio market. We now have a total of 22 MLOs across our footprint with the near-term goal of 29
as we keep our sights set on our longer-term vision of $500 million in production per year in new and adjacent markets by 2020.
Our SBA strategy continues to gain traction in an expanding economy. This quarter we sold nearly $1 million of our production
for over $117,000 in loan sale gains. We now have business development officers in Columbus, Westlake, Greater Cleveland, and
Toledo, and soon to be announced an additional BDO in Fort Wayne, Indiana.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
incentive-based, production-driven model continues to move us closer to our strategic production level goal of $40 million loan
volume and a top 100 ranking in the US by 2020 among banks that do SBA lending. With nearly $12 million in volume thus far this
year, we are making meaningful progress and clearly executing on our plan. As of June 2018, we improved our ranking to 207 out
of the 1692 banks in the US that have closed an SBA loan or the 88thpercentile. We will continue to refine our plan and the markets
we serve to become that top 100 producer in the US by 2020.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
of June 30, 2018, we had total assets under our care in our wealth management division now of $408 million, 360 traditional assets
and 47 million on the brokerage platform. As we expand our presence into new and existing markets we have developed more opportunities
as our pipeline has strengthened to over $54 million. This progress now includes a wealth management presence in our newer Fort
Wayne market with a seasoned investment advisor, Mr. Kameron Helmuth.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our
second initiative remains to add scale and improve efficiency. This quarter we expanded organic balance sheet growth and the operating
revenue that accompanied it. In fact, all nine markets delivered net increases in loan growth this past quarter. Setting the pace
for our company was the Columbus region that added $21.1 million, Defiance nearly $11 million, Toledo $6.5 million, and Fort Wayne
$2.3 million. Decentralized, market-specific business models delivered by each of our strong regional leaders provides the inertia.
Deposits also expended this quarter by $4.1 million from the linked quarter and up from the prior year by $45.6 million, or 6.4%.
We now have treasury management professionals working with our commercial and small business lenders in each of our newer low-share
growth markets to attract deposits. In addition, we have redeployed a number of our retail staff into every market now focused
on small business lending and deposit gathering from our commercial and small business clients.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Third
is our strategy to deliver greater scope. As we&rsquo;ve discussed in prior quarters, onboarding and reboarding efforts by our
retail staff continue to provide lift in not only our number of households, but of products and services as well. Households now
over 29,000, increasing slightly from the linked quarter and 2.9% from the prior year. We also grew our products and services
now to over 85,000, increasing 1.3% from the linked quarter and 3.8% from the prior year. We continue to improve and supplement
our digital platform, which this quarter was highlighted by the revitalization of our bank website. Additionally, we saw a 23%
improvement year over year increase in our number of mobile banking users, a trend that continues.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Operational
excellence, the fourth key theme. At quarter end we reported a mortgage servicing portfolio of $1.03 billion, representing 7300
households. As we have discussed for many quarters, not only does this business line provide the entryway to the household, but
also delivers that $2.5 million in reoccurring revenue annually along the way. We fully intend to leverage our presence and expertise
in this space.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
November of last year, we hired a Chief Technology Innovation Officer, Ernesto Gaytan, who had spent the majority of his career
at GE Capital. Under his leadership as a Six Sigma expert we have begun now, under his leadership, to realign our processes and
improve key operational metrics to ensure we deliver a seamless, unique client experience at every touch.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Working
interdependently to serve our clients and identify referral opportunities enable us to add value to our relationships. It&rsquo;s
part of our culture. As a result, this quarter our staff identified another 591 client needs that we referred to another business
line. These referrals led to 352 solutions for nearly 26.5 million. Of those 352 referrals we closed, 175 resulted in home equity
lines for over $5.1 million, and 105 referrals resulted in residential mortgage loans for $11.8 million. We are making every attempt
to provide 100% of what the client needs and nothing of what they do not.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
fifth key initiative, asset quality. Nonperforming assets declined by $700,000 to just 0.34%. Total past-due loans now at 0.23%,
and net charge-offs, just $25,000, or one basis point. Our reserve to nonperforming now stands at a robust 264%.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Before
I turn the call over to Tony for additional comments and color, I&rsquo;d like to comment on the capital raise that we completed
in February, which added $1.6 million shares and $30 million in Tier 1 equity capital. Clearly this capital, along with strong
earnings, has provided us a solid foundation of tangible common equity to both fund and support the robust organic balance sheet
growth I just mentioned. The additional liquidity and sponsorship of our stock is evident in our increased stock price.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">And
now I&rsquo;d like to ask Tony Cosentino to provide, Tony, some more details on our performance this past quarter.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Thanks,
Mark, and good morning, everyone. As Mark has previously highlighted, we had net income of $3.1 million, or $0.40 per diluted
EPS for the quarter. That EPS of $0.40 was up $0.03, or 8% from the prior year and up $0.05, or 14% from the linked quarter. Of
course, any comparative is impacted by the addition of the 1.67 million new common shares from February, as well as a reduction
in our federal tax rate, coming down from 32.1% in 2017 to 18.4% currently.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">So,
some highlights for the quarter. Operating revenue up 10.9% from the prior year and up 6.1% from the linked quarter. Loan growth
was up $101.7 million from June 2017, or 15.6%. Loan sales delivered gains of $2.2 million from mortgage, small business, and
agriculture. Our mortgage volume of $109.5 million was 11.9% higher than in the second quarter of 2017. And lastly, as Mark indicated,
we continue to reduce our nonperforming ratio, which is now down to 34 basis points.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
we break down further the second-quarter income statement, beginning with our margin, and despite the headwinds of a flattening
yield curve, net interest income was up from the prior year by 21% and up 9.4% from the linked quarter. End of period loan balances
from the prior year were up $102 million, an increase of 15.6%. Our average loan yield for the quarter of 4.97% increased by 46
basis points from the prior year. Overall, our earning asset yield was up 54 basis points to the prior year.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
addition to the balance sheet impact, the three rate increases have driven yields certainly higher. With 70% of our loans of a
variable nature, we will continue to see higher loan yields on average, but not necessarily at the same pace that we are seeing
an increase to our funding costs. On that funding side we continue to experience an increase in the cost of our interest-bearing
liabilities, which came in at 80 basis points for the quarter, which was up 16 basis points from the prior year, and up nine basis
points from the linked quarter. Net interest margin at 4.14% was up 41 basis points for the prior year and up from the linked
quarter by 28 basis points. These variances were all due to the combination of somewhat higher deposit costs, significant loan
growth, and fees from higher mortgage origination. Total interest expense costs have risen by nearly 30% from the prior year with
that variance tied almost exclusively to increased volume and slightly rates as in the second half of the quarter.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Loan
activity has influenced margin income from the prior year with total loan interest income of $9 million, up 24%, and clearly $102
million of increased loan balance is a key driver. We have a strong pipeline, but it is unlikely that we will repeat the $46 million
of loan growth we realized this quarter going forward.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total
noninterest income of $4.2 million was down from the prior year, which reflects somewhat lower SBA gains and certainly the sale
of our DCM business that occurred in the first quarter of this year. Fee income as a percentage of total revenue, still healthy
at nearly 34%. For the quarter, as we indicated, mortgage originations of $109.5 million were up from the prior year by $11.7
million, or 11.9%, and were up $51 million, or 87% from the linked quarter. This quarter&rsquo;s new purchase volume remained
high at 95%. And in the quarter, we saw a measurable shift by our clients into variable-rate mortgages, which drove higher on
balance sheet residential outstandings.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Total
gains on the sale did come in at $2.1 million, which was 2.6% on our sold volume of $79 million. Our servicing portfolio of $1.03
billion provided revenue for the quarter of $636,000 and is on pace to deliver $2.5 million in total revenue in 2018. That servicing
portfolio has increased by $80 million, or 8.2% from the prior year.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
market value of our mortgage servicing rights remained level this past quarter. Our calculated fair value of 121 basis points
was up 15 basis points from the prior year and did result in a very slight $22,000 impairment. At June 30 those mortgage servicing
rights were $10.6 million, up 15% from the second quarter of 2017 and up 4% from the linked quarter. Our total temporary impairment
remaining is $81,000. Operating expenses this quarter of $8.6 million were up $0.8 million or 9.9% for the prior year, but compared
to the linked quarter, expenses were down $50,000. On a year-to-date basis operating expenses were up 13%, reflecting the sale
of DCM and the tax initiatives we discussed and distributed in the first quarter of 2018. However, operating leverage for both
the quarter and year-to-date are positive.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Now
as we turn to the balance sheet, total loan outstandings at June 30, 2018, stood at $753 million, which was 79.7% of the total
assets of the company. We had growth of $101.7 million from the prior year and were up $46.1 million from the linked quarter.
Compared to the prior year, our loan book grew in every category, led by commercial real estate with $54.2 million, followed by
residential real estate of $35.6 million. On the deposit side we were up from the prior year by $45.5 million, a 6.4% growth rate,
and up slightly from the linked quarter by $4.1 million, or 0.6%.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Deposit
and funding costs continued to rise this past quarter. The rate on interest-bearing liabilities of 80 basis points is up 16 basis
point or 25% from the prior year. Adding the impact of non-interest-bearing demand drops our total cost to 66 basis points, but
also up 25%. We&rsquo;ve offset these higher costs by moving our loan-to-deposit ratio up 6% to 100% as of June 30, 2018, but
it is critical that we continue to match deposit growth with loan growth for profitability and liquidity requirements.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Looking
at our capital position, we finished the quarter at $125.9 million, up $36.1 million, or 40.6% from June 30, 2017. We continue
to be pleased with the added liquidity and sponsorship of our shares after the completion of our capital raise in February. The
equity-to-asset ratio of 13.3% was also up significantly from the prior year.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Regarding
asset quality, total nonperforming assets now stand at $3.2 million, or 0.34% of total assets. The total level of nonperforming
assets is down $700,000 from the prior year and down $300,000 to the linked quarter. Included in our nonperforming asset total
is $1.1 million in accruing restructured credits. These restructured loans, nearly all maturity extensions, elevate our nonperforming
level by 12 basis points. And absent those restructed credits, our total nonperforming asset ratio would be just 22 basis points.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Provision
expense for the quarter was 300,000, compared to 200,000 for the second quarter of 2017 and flat from the linked quarter. We did
have loan losses in the quarter of just 25,000. Our absolute level of loan-loss allowance at 8.5 million is up from the prior
year by 700,000, or 8.6%. Due to loan growth, that allowance for total loans percentage has declined from 1.2% at June 30, 2017,
to 1.13% currently. This allowance level still places us at the median of our peer group, which certainly bodes well given our
top quartile peer NPA ratio. And because of the reduction in nonperforming loans this quarter we now have NPL coverage with our
allowance of 264%, well above our prior-year number.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
summary, a great quarter, and our year-to-date performance has been strong with net income of 5.6 million, up 29%. And when we
look at our pretax pre-provision income number, on a year-to-date basis we are still up a strong 13% from the prior year-to-date.
I&rsquo;ll now turn the call back over to Mark.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Thank
you, Tony. It was a great quarter for our company, a strong one for our company on many fronts, double-digit profit improvement
driven by topline revenue expansion of nearly 11%, representing, as Tony had mentioned, and I certainly mentioned, 100 million
in organic balance sheet growth year over year, year over quarter. And more normalized level of residential real estate production
at the 109 million, and of course that market-leading asset, quality. Clearly together the results reflect our deliberate commitment
to grow and diversify our revenue as we add scale to improve our efficiency.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As
we move into the second half of the year we remain optimistic that the earnings momentum we have seen in the first half will continue.
That said, it will surely not come without added pressure, as Tony indicated on the liabilities side of the balance sheet that
will most certainly affect our overall cost of funding. With our nearly 100% loan-to-deposit ratio we will be selective on our
lending opportunities to optimize revenue and margin.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Finally,
we remain steadfast on our focus to continue to deliver our stakeholders a high-performing company. We have strong regional leadership,
insightful business line leaders serving geographically diverse markets in an economy that remains fairly resilient, albeit one
that is entering one of the longest expansions of all time.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">I&rsquo;ll
now turn the call back to Melissa for any questions from our investment community. Melissa?</FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
will now begin the question-and-answer session. To answer--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. If at any time your question has been addressed
and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble
our roster.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
first question comes from--we have Brian Martin with Fig Partners. Please go ahead.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Hi,
good morning, guys.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Maybe
I just wanted to start with if--maybe if Tony or Mark, I guess maybe Tony on the margin, if maybe you could just reconcile, Tony,
just kind of the gap up in margin from first quarter to second quarter. I guess, you know, I mean certainly you&rsquo;ve kind
of outlined some of it. It seemed like mortgage fees were part of it, but just try and understand that, and then just in the context
of your commentary about funding costs and kind of how you&rsquo;re expecting them to continue to rise, just how to think about
margin prospectively given Mark&rsquo;s comments about trying to maximize profitability, but just reconciling on the margin and
just kind of your outlook on how you&rsquo;re thinking about it prospectively.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Sure,
happy to. This is Tony. Thanks, Brian, for the question. I would say it certainly was a bit of a unique quarter in that we had
an oversized level of loan growth, 46 million, kind of 2 to 2.5 times a normal size quarterly level of loan growth. And I would
also say the fact that we have not yet realized all of the funding increases that I think will be evident when we get to next
quarter&rsquo;s margin levels. I think these two factors certainly allowed our balance sheet to move to the 100% loan-to-deposit
level, which we&rsquo;ve traditionally been kind of mid to low 90s. I think that oversized a bit the impact on margin. And certainly,
we can&rsquo;t discount going up 51 million in mortgage loan originations from Q1 to Q2 had a significant impact on certainly
loan fees that has a somewhat impact on our margin level. So, I would say those are the three factors that got us to kind of the
higher level above four margin for Q2, and I think we would come back to maybe a more normalized type level as we look forward,
because funding costs, certainly in the latter half of the quarter, we began to see those evident throughout our markets.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Brian,
this is Mark. Just one comment. Marginal cost of funding as we have seen is well into the 1 to 1.5, and so we&rsquo;ve certainly
been cognizant of that as we price loan demand. So, we&rsquo;re going to be very prudent on the loan funding side to keep that
net interest income expanding, albeit with a larger bottom line, maybe a bit of leakage on the ROA, but clearly improvement of
net income as well as ROE. But it&rsquo;s clearly moving up, and we&rsquo;re on the forefront with 100% loan-to-deposit. So, we&rsquo;re
right in line of sight.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Right.
Okay, and just kind of the strategy on funding going forward, I guess are there--as far as how you fund this given the loan-to-deposit
ratio and the critical nature to kind of match the loan growth with deposits, I mean what specifically, I guess maybe you mentioned
a couple things in the call, but I guess what are you doing on the deposit side to accommodate that loan growth?</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Right.
Great question, and clearly our conversations on funding loans is certainly more robust when it comes to the deposit side. Requiring
those deposit accounts with loan funding is certainly the beginning. We also have restructured, as I mentioned, our entire retail
network, which would place another eight individuals that would have been generally managing or overseeing those retail offices
that now have been relegated to the next layer of management in those retail offices, which has allowed us to put those eight
individuals literally every day on the street talking with existing commercial clients, existing small business clients, as well
as prospective ones. So, we&rsquo;ve clearly changed the game. We&rsquo;ve clearly put the shoe on the other foot relative to
the balance sheet, and we think we&rsquo;re going to be able to move the needle and continue to expand the balance sheet and improve
efficiency and scale. So that&rsquo;s how we&rsquo;re doing it, albeit, again, with some key products that right now we&rsquo;re
reaching out to our private client base and advising them of our new products that are currently at about the 1.85 level and bringing
a larger portion of their deposits into that relationship with us. So, we&rsquo;re using it not only to expand current relationships,
but also establish some new ones.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Gotcha.
Okay, that&rsquo;s helpful. And maybe just if one of you could just talk a little bit about the loan growth and kind of--I think
you gave a little bit of color and maybe I missed it where geographically it came from, but I guess and then just have--based
on what you saw this quarter but cognizant of the profitability you&rsquo;re going to maximize or at least look to in the next
couple quarters, I mean how we think about loan growth the balance of the year, just kind of longer-term, however you guys--however
you can frame it a little bit, just what the pipeline looks like.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Okay,
thanks, Brian. Again, structurally we&rsquo;re built for growth, as I&rsquo;ve mentioned a number of times with all our-- Jon
can make some comments here, but with our, Brian, 17 high-level individuals and very diverse geographic markets we expect that
growth, and we&rsquo;re going to have to look at alternative funding should the deposit machine slow down. But Jon, I know you
field literally 90% of all those requests, either us or a loan committee, and I think we&rsquo;re feeling pretty good about not
only where we&rsquo;ve come from and what we&rsquo;ve done, but where we&rsquo;re going.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">I
do. We began the year with a bit of a pivot and changed some of our weightings and incentives and different things more to a C&amp;I
growth model, not that we&rsquo;re still not growing CRE, as Tony went through in the call, but we&rsquo;ve seen some very nice
C&amp;I projects come on board here in &lsquo;18 and in the pipeline here for the remainder of the year. The pipeline remains
strong. We have a number of projects that are drawing up here in the second and third quarter. So again, it&rsquo;s all about
pivoting and looking at that loan growth a little more strategically. We have the benefit, as Mark said, of being structured for
growth, to being a little bit more strategic about where we deploy our capital and our funding to get those deposits and those
C&amp;I credits that are going to tend to come with more concentrated in the deposit world.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Brian,
one follow-up comment is that, as you well know, three years ago we developed a specific, a focused SBA strategy, and the 40 million
or so that we&rsquo;ve done in SBA and sold off 75%, much like Freddie Mac loans, has certainly given us the ability to garner
additional relationships, and marginally some higher-yielding variable-rate balances on our balance sheet. So that&rsquo;s been
a great addition to our product set and delivery channels throughout all of our market, and we intend to remain significantly
relevant in that space.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">I
gotcha. And the loan growth, at least on the residential side, which kind of led the quarter, I mean I guess is that--it sounds
like some of the variable-rate loans on the mortgage side were kind of retained as opposed to being sold. I guess, is that a trend
I guess you guys would expect to continue? Do you kind of cap out that kind of talking about how strategically what you want to
grow? Does that change going forward, or just how to think about that component of the loan book relative to the others, which
clearly you&rsquo;re focused on?</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Thanks,
Brian. Well, clearly we like the net interest margin that comes with putting those loans on the book, all be them variable. Tony
and I talked about this earlier, that the mortgage machine that we have going, given the flatness of the yield curve, has driven
some of those to the variable end of the curve, and we&rsquo;ll be talking about how much we have in us relative to booking more
of those given our 100% loan-to-deposit ratio. So, our private client group is very robust on that end, those half-million to
million-dollar mortgage loans in some of our low-share high-growth metropolitan markets. So, it&rsquo;s pulling us by inertia
into that field, and we need to continue to consciously determine how it is we price that to make sure we get what we want. But
we&rsquo;ve enjoyed it so far. We like the relationship we gather as a result of that private client relationship, and, so far,
we&rsquo;ve been able to fund it, but we&rsquo;re going to get more selectively, as I mentioned. Tony, you might have an additional
comment.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yeah,
I would just say to add onto that, we had historically been kind of a mid-80s to high-80s percentage of sale of our mortgage origination
product, given the type of product we have and the relative slope of the yield curve. And really, this quarter and a little bit
in Q1 we&rsquo;ve seen a real dramatic shift of our clientele into the variable-rate product. And that profile of that client,
certainly in this quarter, was much more private client oriented, medical professionals, very high-profile, the client that we
like, and we don&rsquo;t mind having that on our portfolio. Still residential real estate is still only mid-20s right now in terms
of a percentage. So we&rsquo;re not overly concerned, but certainly we don&rsquo;t want to be a 100% residential real estate bank.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Right.
Okay, so you&rsquo;re comfortable having it go a bit higher? Maybe you cap that at some point, but at least from where it&rsquo;s
at now there is still room to take it higher?</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
it&rsquo;s certainly on the agenda to continue to discuss, Brian. We&rsquo;ve liked it, as I mentioned, so far, but I think a
bit of conversation internally about that would certainly pay dividends and give us a more conscious approach to that particular
delivery channel.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Okay,
perfect. And then, maybe if you can just give a little thought on the mortgage business and just kind of if anything&rsquo;s changed
with your outlook. I mean, I get the--Tony, if we think about that, how we think about what the production is versus kind of what
you guys are selling into the secondary market, if it&rsquo;s kind of shifted to that lower range, how we think about that going
forward. And then just any commentary if there&rsquo;s--it looked like the gain-on-sale margin was down a touch in the quarter
from first to second quarter. Are we thinking differently about that as you go forward?</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Brian,
just one comment. Yes, as I&rsquo;ve mentioned for 10 years mortgage banking is something that we really like. We obviously have
to get it right in the midst of regulatory reform, so we know that can give the best of banks angst at times, and it&rsquo;s certainly
something that we continue to have to deal with on an ongoing basis. But we love the opportunity to not only gather some noninterest
income, but clearly that 7300 households that have like 1.5 to 1.6 service per household, we have a great opportunity to continue
to expand our region, all of our markets, via that household with one, two, three, four services. So from my perspective where
I sit, it&rsquo;s a great business line that we&rsquo;re going to lever through the retail network to gather more scale. As far
as the gains, Tony&rsquo;s done a great job with a couple other professionals in the organization to widen that margin and hedge,
and I think, Tony, that&rsquo;s evident in our take on each mortgage loan.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
I think that&rsquo;s right, and I think, Brian, as we look forward in the mortgage business I think the end of &lsquo;17 and Q1
was really an anomaly. It really was inventory-driven and some people just taking a breather on the market. Our pipeline is extremely
strong as we sit here today. I would expect a similar result in Q3 that we&rsquo;ve had in Q2, both in terms of level of origination
roughly, as well as the level of sale volume. You know, we&rsquo;re seeing that portfolio product be very strong and with the
type of clientele that we&rsquo;re getting be very strong in that private client arena.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Okay,
so I mean you think the 72%, I guess the sale versus origination this quarter, Tony, I mean keep it at a lower level, or you think
it would tend to gravitate back up towards that, you know, you talked about historically that 80%-type of range, just so I understand
kind of what you&rsquo;re--at least how you&rsquo;re thinking about it?</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
I&rsquo;d be surprised it would get back in the 80% level, certainly in the next couple of quarters based upon the--for the pipeline
I&rsquo;m seeing.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Tony,
and the yield curve. It&rsquo;s driving people to the short end, Brian, as you well know, but yes, we&rsquo;re going to continue
to price consciously and make sure that we get what we want in light of the challenges we have on the other side of the balance
sheet.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
okay, so this level we&rsquo;re at today is kind of more realistic, give or take a little fluctuation. And then just kind of the
gain on sale margin, Tony, I guess any--it&rsquo;s kind of decreased--it&rsquo;s similar to where it was a year ago. It&rsquo;s
down linked quarter. Just kind of in this broad range, is this kind of a--I guess you feel like that&rsquo;s at least going to
hold in there or that&rsquo;s holding in there pretty good? No big changes?</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
no, I would not say that we&rsquo;ll have a significant change from where we are in that kind of mid-2.5 to 2.75-type range would
be that level.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Okay.
Fair enough. Okay, and I guess just from an SBA standpoint, I guess like you said, a little bit of a downtick this quarter. Just
how are you thinking? How does that pipeline look? And I mean I&rsquo;ve heard from at least one other bank that we&rsquo;re seeing
more customers do that in the traditional market as opposed to taking the guarantee on this. Are you guys seeing any change in,
I guess competition in that market? Or just how does your pipeline look? Or any commentary you can offer on that?</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">No.
This is Jon. No, our pipeline remains very, very strong. I think the second quarter to first quarter comparison is more a function
of the outstanding first quarter we had. The second quarter was down a bit, but the pipeline there is very, very strong. We have
a couple large SBA. We have one USDA loan in there that falls into that same category. So I&rsquo;m optimistic about the third
quarter and the pipeline moving forward. We have not changed our strategy. We continue--to answer your question, we don&rsquo;t
see any pressure necessarily to change those loans to the portfolio. I mean, we&rsquo;ve targeted a specific market in that SBA,
and it tends to be business acquisition developments, doctors, professionals, and that market remains as it was. We have key business
development officers. In fact, we continue to deploy, as Mark said earlier, new in Toledo and soon to be in Fort Wayne that we
really think will drive that to a higher level here in remainder of 2018 and &lsquo;19.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
Brian, just one comment. All things being constant, you know given all the calls we make with our 17+ individuals that are making
probably 200 calls a month where we would have, again, certainly not a new approach, but where we might have walked away from
a credit that needed some help, such as an SBA-guaranteed, now we have that opportunity to keep that client with us, expand that
relationship, and make some great fee-based income that, as we&rsquo;ve always said, is going to supplement the mortgage business
line as rates increase marginally. So we feel we&rsquo;ve got both ends of the curve covered, and we really like our prospects
in that SBA space, particularly with our deployed BDOs who do nothing but SBA lending. We think we have the model right. We think
we&rsquo;ve got the markets, and we certainly are supportive of a 3+ GDP that is expanding our opportunities.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">All
right, and did you guys--did I miss it, or did you guys say that you also added someone or you&rsquo;re looking to add someone
this quarter? I guess did I miss that?</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
added somebody in Toledo in the second quarter, and we&rsquo;re tentatively adding somebody that&rsquo;s accepted but hasn&rsquo;t
yet joined us here in the third quarter in Fort Wayne.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fort
Wayne. Okay, all right, that&rsquo;s good. All right, and then just one question back to the margin. Just the variable-rate component
of the loan portfolio. I mean, what amount of the loan book is repricing today with rate increases or pretty closely thereafter
with the rate increases?</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Well
yes, I&rsquo;d say a couple things there. You know, we&rsquo;re about 70:30 variable to fixed in terms of the entire portfolio.
Now again, that doesn&rsquo;t necessarily mean that&rsquo;s going to reprice every time. We&rsquo;re about a 250,000 to 300,000
on every Fed rate rise on 25 basis points roughly right now. That gets wider as you get further away because we certainly do have
floors that people get away from. So I would say, you know, we&rsquo;re probably 40% of our portfolio is probably an immediate
reaction to any kind of rate rise, whether that be LIBOR-based or prime-based.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
okay. That&rsquo;s what I heard. I thought you said 75%, but I know like you said not all of it moves right away, so okay. Maybe
just the last one or two for me was just on the expenses. It looked like things were pretty clean this quarter. Anything unusual
in the expense line, I mean, outside of the volatility that goes with the mortgage unit a pretty clean quarter on the expense
side would you guys characterize? And just how you&rsquo;re thinking about the outlook there. Are you still making investments
in the franchise to kind of keep that rate or that expense run rate kind of tending to trickle up a bit?</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Well,
again, from our new found--as we reported the first quarter of the year--with our newfound tax initiative incentives we have borne
some additional expenses from some of our staff. As everyone would certainly contend, the market, the employment market has continued
to tighten. That has begged some additional increases and some incentive components that we&rsquo;ve continued to realize. Be
that as it may, our expenses are clearly up, but we keep a keen eye on that operating leverage that was still positive this last
quarter, and we clearly have a lot of room to run, as I mentioned last quarter, Brian.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">When
you look at our 30 million to 35 million average portfolio of our commercial person, with the number of people we have on staff,
we are clearly poised for continued rise in improvement in our efficiency as those portfolios expand. Now again, we sell off those
SBA, but those are real-time gains that we like, and then, when we build the balance sheet, we&rsquo;ve got certainly a lot more
room to run on that net interest income. So, they&rsquo;re up, but all those trades we have made in the last 5+ years have been
good trades, and we contend that through those fee-based business lines they&rsquo;re continuing to provide us initial profitability
and initial inertia that&rsquo;s going to take us to a higher level.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
okay. That&rsquo;s helpful. And maybe just any update, if there is any, on just the--you talked about the capital and the benefit
as far as M&amp;A goes, and just how you are thinking about that as you go forward. I guess it seems like there&rsquo;s opportunities
in your market. You&rsquo;ve got the capital now, better currency, and I guess just kind of wondering how things are trending
there. Are there discussions? Or it just seems like they&rsquo;ve--I guess some color on that.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Well,
as we&rsquo;ve certainly seen, certainly a strengthening in our currency, which is giving us opportunities to have those discussions.
That said, we need to close our 2018 compliance examination. We have some issues that we&rsquo;re currently discussing with our
regulators that we certainly expect a timely resolution to. But that said, we don&rsquo;t have anything on the platter that it&rsquo;s
imminent. But we have had those conversations, and we continue to rank opportunities that would fit not only geographically for
us, but fit nicely from a balance sheet perspective. That would certainly help our 100% loan-to-deposit. So those deposit-rich
entities that have their own challenges, because obviously they&rsquo;re deposit-rich because they haven&rsquo;t grown the other
side of the balance sheet, would fit nicely with our company. So, we continue to have those conversations. We continue to use
our capital judiciously. Organic growth, we think, is very wise for all of our stakeholders, but certainly we keep a keen eye
on the opportunities that are out there on the M&amp;A side.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Yes,
okay. And the tax rate, I guess no change to kind of--it looks like it&rsquo;s been a bit lower than kind of at least I was thinking.
I mean is a--do you expect that to kind of trend a bit higher from kind of the current level? I think it was around 18% this quarter,
kind of blended rate for the year of let&rsquo;s call it 18.5. Just as you think about that going forward does it trend a bit
higher from the current level, or is this level pretty sustainable?</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Hi,
Brian. This is Tony again. Yes, we had a couple of some stock compensation items, as well as some tax-free investments that were
a bit higher this quarter. I would tend to be more comfortable with a tax rate going forward the high 19s-type level.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">High
19s, okay. All right, and I think that&rsquo;s it, guys. I appreciate you taking all the questions, and I&rsquo;ll step back if
there is someone else that has one.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Thanks,
Brian. Nice to chat with you.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Again,
if you have a question please press star, then one. This concludes our question-and-answer session. I would like to turn the conference
back over to Mr. Klein for any closing remarks. Please go ahead.</FONT></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Once
again, thank you all for joining. We&rsquo;re proud of the results we&rsquo;ve delivered. We thank you for your confidence in
what we&rsquo;re attempting to accomplish here at SB Financial, and we certainly look forward to chatting with you again in October
for the third-quarter results of 2018. Thanks for joining, and have a great day.</FONT></P>

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

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">11</FONT></P>

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