<SEC-DOCUMENT>0001213900-19-021916.txt : 20191104
<SEC-HEADER>0001213900-19-021916.hdr.sgml : 20191104
<ACCEPTANCE-DATETIME>20191104145257
ACCESSION NUMBER:		0001213900-19-021916
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20191029
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191104
DATE AS OF CHANGE:		20191104

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:		191189355

	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>f8k102919_sbfinancial.htm
<DESCRIPTION>FORM 8-K
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<!-- Field: Rule-Page --><DIV STYLE="margin-top: 12pt; margin-bottom: 3pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported)
<U>November 4, 2019 (October 29, 2019)</U></P>

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%; border-bottom: black 1.5pt solid; 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%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 49%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43512</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address of principal executive offices)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><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">&nbsp;</P>

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

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

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

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

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

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

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

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    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><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></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><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></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><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></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify"><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></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Indicate by check mark
whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Securities registered pursuant
to Section 12(b) of the Act:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0.05pt">&nbsp;</P>

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    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title of each class</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; text-indent: 4.15pt; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Trading Symbol(s)</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name of each exchange on which registered</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Common Shares, No Par Value 6,417,435 Outstanding at November 4, 2019</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SBFG</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">The NASDAQ Stock Market, LLC</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(NASDAQ Capital Market)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 3pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On October 29, 2019, SB
Financial Group, Inc. (the &ldquo;Company&rdquo;) hosted a conference call and webcast to discuss its financial results for the
third quarter ending September 30, 2019. A copy of the transcript for the conference call and webcast is furnished as Exhibit 99.1
and is incorporated herein by reference.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The information in this
Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be &ldquo;filed&rdquo; for
purposes of Section 18 of the Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;) or otherwise subject to the liabilities
of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document
filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.</P>

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

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

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

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

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit No.</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 92%; border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="f8k102919ex99-1_sbfinancial.htm">Transcript of conference call and webcast conducted on October 29, 2019.</A></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SB FINANCIAL GROUP, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 63%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:&nbsp;&nbsp;November 4, 2019</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 35%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Anthony V. Cosentino</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anthony V. Cosentino</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: center; text-indent: -1in">INDEX TO EXHIBITS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: center; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: center; text-indent: -1in">Current Report on
Form 8-K</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: center; text-indent: -1in">Dated November 4,
2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: center; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: center; text-indent: -1in">SB Financial Group,
Inc.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit No.</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 92%; border-bottom: black 1.5pt solid; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="f8k102919ex99-1_sbfinancial.htm">Transcript of conference call and webcast conducted on October 29, 2019.</A></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 8pt">&nbsp;</P>



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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>f8k102919ex99-1_sbfinancial.htm
<DESCRIPTION>TRANSCRIPT OF CONFERENCE CALL AND WEBCAST CONDUCTED ON OCTOBER 29, 2019.
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 99.1</B></P>

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    <TD STYLE="width: 100%; border-left: #4F81BD 2.25pt solid; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">SB Financial Group</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">Q3 2019 Earnings Conference Call and Webcast</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">October 29, 2019 at 9:30 a.m. Eastern</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; font-size: 10pt">&nbsp;</TD></TR>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>CORPORATE PARTICIPANTS</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>Mark Klein</B> <I>- President and Chief Executive Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>Anthony Cosentino</B> <I>- Chief Financial Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>Jonathan Gathman</B> <I>- Senior Lending Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><B>Carol Robbins - </B><I>Senior Vice President and Controller</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt">&nbsp;</P>
        <P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0 0 6pt">&nbsp;</P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Good morning and welcome to the SB Financial
Third Quarter 2019 Earnings 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 1 on your telephone keypad. To withdraw your question, please press
star, then 2. Please note this event is being recorded.</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">I would now like to turn the conference over
to Carol Robbins. Please go ahead.</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"><B>Carol Robbins</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Joining me today are Mark Klein, Chairman,
President and CEO; Tony Cosentino, Chief Financial Officer; and Jon Gathman, Senior Lending Officer.</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">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. 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 the
financial results presented in accordance with GAAP, this call will also contain certain non-GAAP financial measures.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thank you, Carol, and good morning, everyone.
Welcome to our Third Quarter 2019 Conference Call and Webcast. Our comments today are supplemented by our earnings release we filed
last evening.</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">To recap, highlights for the quarter include
net income of $3.8 million, up $700,000, or a 21 percent increase, over the prior-year quarter. And, for the full year, excluding
the $1.4 million OMSR impairment taken the first half of 2019, the adjusted net income was $9.7 million, up a million, or 12 percent,
over the prior year.</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">Consider our results from the year-ago quarter.
We grew diluted earnings per share to $0.48 , for an all-time record for core earnings for our company, representing a 23 percent
improvement; expanded total assets $63 million to $1.04 billion; achieved a return on average assets of 144, up 14 basis points;
produced mortgage origination volume of a robust $158 million and set a new record for quarterly production; delivered new loan
balances of $8.9 million, growing our balances to now $823 million; increased deposits $8.6 million to $848 million; and continued
to maintain our strong asset quality metrics.</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">&nbsp;</P>

<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: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As we&rsquo;ve discussed in prior quarters,
five key initiatives that continue to drive our quest for high performance are: the diversity and growth of revenue; more scale
to organic growth and potentially M&amp;A; more products and services for and among our existing client base; excellence in our
operations and intimacy with our client communications; and, lastly, the foundation of a well-built company &mdash; strong asset
quality.</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">Let&rsquo;s discuss revenue diversity briefly.
Net interest income for the balance sheet of $9.1 million provided the bulk of our revenue of $14.4 million, or 63 percent. Our
fee-based residential mortgage engine was clearly fully engaged this quarter as we achieved record originations, with $158 million
in volume, from nearly 700 clients.</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">The dollar volume was up 66 percent from the
prior-year quarter of $95 million, and over 60 percent from the linked quarter of $98 million. We have now originated $308 million
this year, and we&rsquo;re confident that we will achieve our first $400-million-dollar year in total production in 2019.</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">Non-interest income to total revenue was 37.2
percent for the third quarter and 31.5 percent for the full year. The exclusion of the servicing rights impairment from the first
half of 2019 would increase our year-to-date-fee-to-revenue percentage to 33.9 percent. Our non-interest income of $5.4 million
is up $1.2 million, or 27.7 percent from the prior year, due to mortgage volume, higher SBA gains, and revenue from our title agency.</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">Our Indianapolis mortgage team contributed
to our success in the quarter, as they now have three originators engaged in that very affluent market. Columbus continues to lead
our company in the residential arena, as they alone eclipsed nearly $100 million in total volume for the quarter.</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">Our title agency realized the good fortune
of a very dynamic mortgage market and the growing Columbus, Ohio, region. For the quarter, Peak Title had revenue of over $400,000
and we&rsquo;ve begun to successfully integrate their services with and into our commercial business line and throughout our entire
geographic footprint. The leadership team with Peak Title is quickly becoming a key part of our company, and we anticipate continued
record volumes in the coming months.</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">Our SBA production for the quarter came in
at $1.8 million; however, as we indicated last month, we had some credits on draw schedules that allowed total SBA sales to come
to the $2.8 million mark for the quarter. Those higher sales generated gains of $328,000, which is up over 200 percent from the
prior-year quarter. Our residential portfolio &mdash; or residual portfolio, the unguaranteed part, now stands at $12.3 million
with a nicely weighted yield of 7.5 percent.</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">Wealth management assets under our care of
$484 million represented an increase over the prior-year quarter of $72.1 million, or 17.5 percent. Revenue from this business
line is up to nearly $800,000 per quarter and is growing nicely at 10 percent from the prior year. Including all business lines,
we now oversee nearly $2.7 billion in total assets, up over $220 million from the prior-year quarter.</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">Our second key initiative, more scale and improving
efficiency &mdash; loan growth for the third quarter was $8.9 million, and compared to the prior year, we have grown $51.7 million,
or 6.7 percent. We&rsquo;ve had some pressure to match rates in our commercial real estate portfolio as the regional banks have
certainly gotten more aggressive within this segment. We have elected to remain disciplined on our pricing and determined that
some of the transactions would not be priced appropriately. As a result, we have exited some relationships that have put a bit
of pressure on our organic growth. That said, our loan interest income continued its growth in the quarter to $10.7 million, which
is up $1.2 million, or 12 percent, from the prior year.</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">&nbsp;</P>

<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: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deposit growth continues to be positive for
the quarter and year to date. As I mentioned, this quarter we grew deposits to $848 million, up $58.5 million, or 7.4 percent.</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">Third is our strategy to develop deeper relationships.
Growth in household and services continued as an upward trajectory in the quarter, expanding nearly 900 households from a year
ago and, with these, over 3300 products and services. We continue to expand all aspects of our client and product delivery systems,
with key groups working on our ATM strategies, our new courier service, digital banking, and community outreach. We expect to implement
a dynamic loan profitability solution in the fourth quarter that will further refine our approach to identifying newly coveted
relationships and remaining relevant to existing ones.</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">In the third quarter, we continued our commitment
to identifying needs for each of our clients and to refer those needs to our business partners. Following up on the $30 million,
we referred in the first half of 2019, we uncovered an additional $17 million in opportunities in this quarter.</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">Operational excellence remains the fore-theme
this quarter. Refinanced volume accelerated, as of our $158 million originated, $35 million, or 22 percent, were internal refinances.
This refinanced volume impacted our expense amortization; however, the commission structure on these transactions assessed that
we will realize higher profitability in the coming fourth quarter.</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">The number of actual mortgage closings in the
quarter was nearly 700, which is up 27 percent from the prior year and up 44 percent from the linked quarter. We were able to achieve
that closing rate while maintaining our operational teams at historical staffing and general expense levels. Expense levels of
$9.5 million are up $700,000 from the prior year due to the impact of the title agency, merit increases, and higher commission
levels due to the mortgage volume.</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">Non-interest expense to average assets of 3.6
percent was down slightly from the third quarter of 2018 and our net non-interest expense to average assets improved to a negative
1.6 percent compared to the prior year of a negative 1.9 percent.</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">And finally, asset quality &mdash; non-performing
assets flat to the linked quarter of 0.44 percent. Total pass-through loans more normalized this quarter at 0.25 percent. Net charge-offs
for the quarter were $113,000 as we had a few SBA credits that did weaken, and our reserve to non-performing coverage remains in
the top quartile of our peer group at a robust 207 percent. Our asset quality and regimented approach to credit analysis and loan
review continued to remain a strength of our company.</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">I&rsquo;ll ask Tony to provide a little more
insight on our performance this quarter. Tony?</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thanks, Mark, and good morning, everyone. As
Mark mentioned, we had net income of $3.8 million, or $0.48 cents per diluted share. Adjusted diluted earnings per share for the
year is also up at $1.22 compared to $1.14 for the prior year, or a 7 percent increase.</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">Earnings per share were impacted by a couple
of things &mdash; the capital raise we completed in the first quarter of 2018 as well as the share buyback plan that we initiated
in July of this year.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern<BR></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"></P>

<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">Total operating revenue for the quarter was
up 13.3 percent from the prior year and up 15.2 percent from the linked quarter. We had positive operating leverage for the quarter
of 1.6 times as revenue rose 13 percent and expenses were higher by 8 percent. For the year, when we adjust for the impairment,
operating leverage comes in at 1.4 times.</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">Loan sales delivered gains of $3 million from
mortgage, small business, and agriculture in the quarter. Our mortgage banking revenue increased from the prior year despite the
significant refinance amortization. And, lastly, as Mark indicated, we continue to hold our non-performing assets steady with the
NPA ratio at quarter end of 44 basis points.</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">As we break down our third quarter income statement,
net interest income was up from the prior year by 6.2 percent and up 2.6 percent to the linked quarter. Our average loan yield
for the quarter of 5.15 percent increased by 20 basis points from the prior year, and overall earning asset yield was up 23 basis
points to the prior year at 4.98 percent.</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">In addition to the balance sheet rate impact,
mortgage volume via fees has added 28 basis points to the quarterly yield as compared to adding 23 basis points in the prior-year
quarter.</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">Funding costs, however, have continued to rise,
but we have reduced depository and borrowing rates in response to the recent Fed rate reduction. The rate on interest-bearing liabilities
came in at 1.33 percent for the quarter, which was up 33 basis points from the prior year, but up just 5 basis points from the
linked quarter. Net interest margin at 3.93 percent was down 3 basis points from the prior year. For the full year, our margin
was 3.87, down 9 basis points from the first nine months of 2018.</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">Total interest expense costs have risen by
44 percent from the prior year due to higher borrowing costs, loan growth, and the increased competitive nature of deposit rates.
Total non-interest income of $5.4 million was up from the prior year by 27.7 percent, due to the higher mortgage volume, SBA gains,
title agency revenue, and the higher returns we&rsquo;ve achieved in wealth management.</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">As Mark indicated, we had a strong contribution
from our newly acquired title agency, with revenue for the quarter of $400,000, and was reflective of our efforts to integrate
the business line into the rest of our company.</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">Total mortgage sales were $125.4 million for
the quarter, which was also up from the prior year and the linked quarter. For the quarter, our sold percentage was nearly 80 percent,
which is trending closer to our historical average. Total gains on sale came in at $2.5 million, which was 2.0 percent on our sold
volume. Our servicing portfolio now stands at $1.15 billion, providing revenue for the quarter of $710,000 and is on pace to deliver
$2.8 million in total revenue in 2019.</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">This servicing portfolio has increased by $87
million, or 8.1 percent, from the prior year. Market value of those mortgage servicing rights declined just slightly this quarter
as the calculated fair value of 95 basis points was down 22 and 3 basis points from the prior year and linked quarters, respectively,
but did not result in a servicing rights impairment. However, substantially higher level of refinancing did increase our normal
servicing amortization by over 123 percent, as amortization costs were $700,000 for the quarter.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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">At September 30<SUP>th</SUP>, our mortgage
servicing rights were $10.4 million, which were down $700,000, or 6.1 percent, from the third quarter of 2018. Our total impairment
remaining now stands at $1.6 million.</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">Operating expenses for the quarter were $9.5
million, up $700,000, or 8.1 percent, from the prior year and were also up $400,000, or 4.3 percent, from the linked quarter. This
quarter included our title agency expense of $300,000 and the higher mortgage commissions from the additional $45 million in mortgage
volume.</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">Total head count adjusted for the title agency
was down slightly from the prior year, due to higher vacancy levels. Efficiency ratio for the quarter was well improved from the
prior year, reflective or our 13 percent revenue increase.</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">As we turn to the balance sheet, loan outstandings
at September 30<SUP>th</SUP> stood at $823.4 million, which was 79 percent of the total assets of the company. We had loan growth
of $51.7 million and asset growth of $63.6 million from the prior year, and we&rsquo;re up $8.9 million and $13.6 million, respectively,
from the linked quarter.</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">Compared to the prior year, our loan book grew
in all but on segment, led by commercial with $25.3 million, followed by residential real estate with $21 million.</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">On the deposit side, we were up from the prior
year by $63.6 million, a 6.5 percent growth rate, and up from the linked quarter by 13.6. We continue to utilize our balance sheet
very efficiently as our loan-to-deposit ratio improved slightly from the linked quarter to 97.1 percent. We have lowered deposit
rates in response to the recent Fed rate decreases, and thus far our balances are holding relatively flat.</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">Looking at our capital position, we finished
the quarter at $134.2 million, which is up $7.1 million, or 5.6 percent, from the prior year. We continued our share buyback in
the quarter, with 173,000 shares repurchased, and we have approximately 225,000 remaining on our current share buyback authorization.</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">Regarding asset quality, total non-performing
assets now stand at $4.6 million, or 44 basis points. The total level of these non-performing assets is up $0.1 million from the
linked quarter. Included in our non-performing asset level is $800,000 in accruing restructured credits. These restructured loans
elevate our non-performing level by 8 basis points and absent those, total non-performing asset ratio would be just 36 basis points.</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">Provision expense for the quarter was $300,000,
up $300,000 from the prior year and up just slightly from the linked quarter. We did have loan losses in the quarter of $113,000,
or 5 basis points, due to a few SBA credits. Our absolute level of loan loss allowance of $8.5 million is up slightly from the
prior year, and due to loan growth, our allowance-to-total-loans percentage has declined from 1.1 percent the prior year to 1.03
percent currently. This allowance level still places us above the median of our peer group, and our coverage ratio to non-performing
is in the top quartile of that peer group. We now have NPL coverage with our allowance of 207 percent, compared to 256 percent
at September 2018.</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">I&rsquo;ll now turn the call back over to Mark.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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"><B></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thanks, Tony. Clearly, this quarter was aided
by the substantial increase in our volume in the mortgage business line as we reported; however, given the weakness in mortgage
activity in the first part of 2019, we&rsquo;re actually right on our 2019 budget expectations through nine months. I am extremely
proud of our sales and support teams as they have worked diligently to handle this excess capacity and to drive our services deeper
into our clients throughout the footprint.</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">Abby Waters and her team at Peak Title achieved
record volumes in the quarter, and we&rsquo;re quite pleased with the integration of this complementary business line. We continue
to seek partners like Peak that will enable us to grow our organization both inside and outside our market areas.</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">As we have begun to plan for 2020, we acknowledge
the headwinds that are facing the financial services industry; however, we continue to remain optimistic about our future and growth
potential as our pipelines are strong and the consumer is healthy, with higher disposal income and a fairly constrained debt load.
Organic balance sheet growth and potential M&amp;A opportunities, coupled with industry disruption in our current markets, should
inure to our benefit in the coming months and quarters.</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">And I&rsquo;ll now turn the call back over
to Carol for potential questions and answers. Carol?</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"><B>Carol Robbins</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thank you. Sarah, we are now ready for any
questions, if there are any.</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>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We will now begin the question-and-answer session.
To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset
before pressing the keys. To withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble
our roster</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">Our first question comes from Brian Martin
with Janney Montgomery. Please go ahead.</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"><B>Brian Martin</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Good morning, Brian. How you doing?</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Hey, Mark or Tony, could you talk a little
bit about &mdash; I think you mentioned just starting out in loan growth, maybe just being a bit more competitive in your market
and letting a few credits walk. Just, you know, how you&rsquo;re thinking about the coming quarters and just kind of pay-off activity,
just your outlook. It sounds like the pipelines are good, so just kind of sustaining the current level of loan growth or just how
you view that.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, just from a high level, Brian, we continue
to be optimistic about our ability to grow. We&rsquo;ve certainly got some great individuals that are leading those markets with
boots on the ground. We&rsquo;ve just &mdash; you know, kind of from a pricing perspective, we realize that actually remaining
disciplined in our pricing might continue to benefit us in the coming months and quarters as opposed to just fielding all requests
at face value.</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>

<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: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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">That said, we don&rsquo;t mind median level
growth in that arena, but, again, we want to continue to grow and continue to prove our efficiency, albeit with the margin that
we can incrementally expand versus contract. So John Gathman is with us, and I know John sees a lot of credits that we opt out
of, not only we do not do but maybe do not modify our rates maybe as robustly as we did a year ago.</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"><B>Jonathan Gathman</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, I would just add to that what Mark said.
We&rsquo;re talking about two or three particular relationships. Two of the three in particular were highly price sensitive, and,
frankly, that&rsquo;s how we got those relationships. That said, the competition we&rsquo;re seeing is not just lower rates, but
it&rsquo;s longer duration. With the rate curve flat, pricing exclusively off of a treasury curve or something like that, is going
to lead you to some of what we feel are bad conclusions as we look out three, five, seven, ten years. So, again, as Mark said,
we&rsquo;re maintaining that discipline. In those couple cases, we were willing to redeploy that money elsewhere, where we thought
we could get better duration and better rates.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. And the pipeline today, is it, you know,
pretty similar to where it was at the end of last quarter, or is this &mdash; how are things standing there? It sounds like they&rsquo;re
pretty good.</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"><B>Jonathan Gathman</B>, I would say that.
I would say it&rsquo;s pretty similar to last quarter, still very strong. We feel very good about it. So, again, these rates that
we&rsquo;re talking about haven&rsquo;t had an adverse impact into our pipeline.</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">And, Brain &mdash; this is Tony &mdash; I would
just say &mdash; to add on to John&rsquo;s comments, while we do have, I think, a very good pipeline, I think we are still going
to see some downward pressure in CRE in the fourth quarter, things we know about today. So I think we&rsquo;ll grind our way through
to a little bit of growth, but I wouldn&rsquo;t expect it to be historical in the fourth quarter.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">And, Brian, just to follow up on Tony&rsquo;s
comment, clearly, we recognize the job to be done, that we need to continue to make more calls, and particularly on C&amp;I, just
because of the competitive nature that we&rsquo;ve seen on the CRE. So we understand that CRE is the place that you can move the
needle on the balance sheet, but C&amp;I is what we continue to focus on in the spirit of generating more deposits to fund incrementally
higher loans.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. And how is &mdash; the SBA trends are
pretty positive at this point?</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes. Just a couple comments. You know, we got
into that business line in a very robust way four or five years ago. And, again, our posture on that has been to make good credits
better, but recently we&rsquo;ve had a couple that John can speak to that, you know, just didn&rsquo;t perform as expected. But
generally speaking, we like the business line, we&rsquo;re going deeper into it, because there are clearly other opportunities
out there, albeit in an environment where many competitors have begun to do longer-duration, lower-rate loans without SBA. So that
takes more work and more prospecting. John?</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No, that&rsquo;s absolutely correct. I think
we have some work to do here in the fourth quarter and as we prepare for the first quarter, which we&rsquo;re really working for
at this point anyway. But, as Mark said, we had a little bit of weakness in two very small credits that we&rsquo;ve already primarily
worked through here quickly, but overall the portfolio continues to perform well, and, as Mark said, we need to continue to push
that business line forward, and we have high expectations for it.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. And then how about just jumping to mortgage
for a minute? I mean, obviously a really strong quarter, and it sounds as though fourth quarter is shaping up to be pretty similar,
as strong. But when you think about 2020, Mark, I guess maybe just &mdash; I mean, do you &mdash; I guess, is your expectation
to kind of best your &rsquo;19 numbers, or is that pretty difficult? I guess, just trying to gauge whether it&rsquo;s going to
be more of a headwind or maybe if it could be down next year, given the strong performance, particularly in 3Q and then maybe going
into fourth quarter.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, well, clearly, Brian, as you know and
we all know, the market, clearly for us, is going to be driven by the level of long-term interest rate. But that said, we&rsquo;re
built for the $400 [million] to $500 million at the strategic level that we&rsquo;ve talked about for a number of years. It&rsquo;s
been that $500 million level, and now, with the addition of Indianapolis and three producers there and incrementally continuing
to work to build out our existing footprint with a team or two, and potentially a strategy to expand organically at the holding
company level, to take a bigger bite out of that mortgage business line, albeit maybe with some more non-traditional saleable kind
of products, we continue to be optimistic about that.</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">We have done it fairly well. We think we know
what we&rsquo;re doing. We&rsquo;ve been built for it. We have the back room that&rsquo;s established for it. And I think we&rsquo;re
going to continue to move that business line along, and, with it, continue to expand households and move those services for households
to a higher level, because the number of new rooftops in our traditional market, as we&rsquo;ve discussed, Brian, with you for
some time, is limited, albeit without Columbus, Indianapolis, and Fort Wayne and Finley, those kind of robust markets.</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">So we need to go deeper in the households to
continue to grow the franchise, and we continue to work on that and we continue to come up with strategies to make that process
more robust, but continuing on in the current trends and continuing to push it higher, continues to be the focus.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. So, I mean, you wouldn&rsquo;t rule out
mortgage being, you know, a greater number next year, Mark, I guess, at this point? It sounds as though &mdash; I mean, I&rsquo;m
not saying you&rsquo;re calling for that, but you&rsquo;re not definitively saying it should be lower, based on strength in the
second half of &rsquo;19 here.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes. No, again, looking at the overall trends
in the Midwest and the fact that builders have begun to identify more opportunities for expansion of single-family households,
we see some of it as we speak. This is the first quarter that we can go on record in saying that we have a finance-based small
development, which hasn&rsquo;t been, Brian, in the course of a conversation for, I don't know, five-to-seven years. And it&rsquo;s
in a very robust market with great potential and on the fringes of our existing footprint, so we&rsquo;re excited about the opportunities.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We&rsquo;ve got great people and
a great staff, and, of course, in a 3.5 percent unemployment market, you know that the challenges continue to arise with regard
to developing staff and retaining staff and talent on all fronts. But we&rsquo;re committed to that business line, and, again,
our intent is to push it on up to the strategic level, to $500 million-plus.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gotcha. Okay. That&rsquo;s great color, Mark,
thanks. And in the &mdash; you mentioned in your prepared remarks something about &mdash; and maybe I missed it &mdash; just refinance
activity and maybe that being a benefit to 4Q. I guess maybe I missed what you said there. Just if you could clarify that.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">I&rsquo;m sorry, Brian, I missed your question.
You cut out on me there a minute.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yeah, I think you said in your prepared remarks
about &mdash; you were talking about refinance activity and then having it being -- adding a bit to profitability in 4Q. I guess
I missed kind of what you said there.</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"><B>Mark Klein</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, Brian, just to clean that up. Our commission
structure is such that, you know, internal refinances are paid at a lower commission rate than what would be a normal mortgage
origination volume, and we saw the bulk of our internal refinances happen in the September timeframe. And we&rsquo;re going to
see that continue into the fourth quarter, so I&rsquo;m just saying, you know, our level of volume will be such, but our commission
structure, because of how it&rsquo;s structured, the costs will be lower, so profitability will be higher in that business line.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">And that said, Tony, to add on to that, we
do have, Brian, a fairly robust pipeline of construction projects, and in the same token, those expenses are recognized upfront
and then revenue comes later when they&rsquo;re sold. So I think that will add some fuel to the fire as well in the fourth quarter.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gotcha. Okay, perfect. And then maybe just
jumping in on the margin for a minute, Tony, just kind of your thought on that if we get some rate decreases here, just kind of
how big picture you see the margin evolving. I guess maybe under this scenario, if we were able to get &mdash; or if we did get
three cuts, you know, the next three Fed meetings, just kind of how do you view the margin under a scenario like that, I guess,
if we &mdash; if that does come to pass?</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Well, I think three cuts is &mdash; and that
is what we&rsquo;re anticipating and budgeting for, will have download pressure on our margin. There&rsquo;s no question about
that. You know, it starts to accelerate on the interest income side, obviously, as we get below those floors that we have had established,
and we just don&rsquo;t have a lot of room on the funding side.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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">I think as we look at interest expense costs,
you know, in Q1, we were up 87 percent; Q2 we were up 77 percent; this quarter we&rsquo;re up 44 percent on a year-over-year basis.
By Q4, we&rsquo;re going to be up, call it, 10 percent on an annualized basis, so funding costs, I think, will stabilize, but we&rsquo;re
just not going to be able to pick up enough to offset three rates cuts on the interest income side, and I don&rsquo;t think we&rsquo;re
going to be able to grow fast enough to outpace that margin pressure. So I would anticipate the same kind of level of year-over-year
margin decline that we had in Q3, probably in Q4 and Q1.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Which I think, Tony, that&rsquo;s really the
impetus for the diligent loan pricing, is that &mdash;</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"><B>Anthony Cosentino</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We want to remain steadfast in our approach
to the maintenance of our margin and how we&rsquo;re pricing and the incremental cost of funding, which continues to ratchet up
a bit.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay, and so just to clarify, Tony, just the
&mdash; for each rate cut you would get, I guess can you give us some quantification on what you think that does to the margin?
I mean, how much of a haircut to the margin are these 25 basis points as you kind of look at it today?</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, it&rsquo;s about <B>$</B>350,000 to $400,000
on the interest income side. Thus far, we&rsquo;ve been able to successfully offset about half of that on funding cost sides. I
would expect to continue that pace going forward, about a 50 percent offset on the funding side, but that will get a little tougher
as we get into the third rate cut.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">It&rsquo;s in operational efficiencies, which,
Brian, we&rsquo;re looking at as we speak on a number of fronts to be able to again continue to drive the bottom line north.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gotcha. And it sounds like you think &mdash;
in your comments, Tony, that deposit costs or funding costs peak in fourth quarter here. Is that &mdash; and maybe stabilize thereafter.
Is that kind of how you&rsquo;re thinking about it?</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, based upon our projections as we have
today.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. Perfect. And then, just the last couple,
just on the buybacks, Tony, I guess, or, Mark, just your &mdash; some good progress so far. I guess the expectation is that you
would complete that. I guess as &mdash; I just don&rsquo;t recall the time. Was it by year-end, or, I guess, could it bleed into
next year? Is that how we&rsquo;re thinking about it?</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, we got $225,000 remaining in our current
authorization. Given our valuations, I wouldn&rsquo;t see us not extending or re-upping authorization after we finish the current
authorization. We&rsquo;re doing between, I don't know, 50-to-75,000 shares buyback a month, so best case scenario, we achieve
it all by the end of the year. It might bleed a bit into Q1, but I would think certainly by February, we&rsquo;re fully completed
by the current authorization.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Perfect. Okay. And just your &mdash; any comments
on just M&amp;A discussions or how &mdash; what&rsquo;s happening in your marketplace on that front?</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, just real high level, Brian, we continue
to look at several options. You know, we keep those open and on the table, and we&rsquo;re confident that, as we&rsquo;ve discussed
with our investors who were good enough to provide us with $30 million of capital, we&rsquo;re optimistic that we&rsquo;re going
to be able to deploy that at least marginally and prudently soon.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. And the primary focus, I know you mentioned
in your remarks, Mark, just kind of both traditional bank M&amp;A and then other kind of fee income type of sources. Both are still
kind of on the table as you look at it today?</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, it would be an <I>and</I> versus an <I>or</I>.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes. Okay. All right. And then maybe just remind
me just on the conversion of the preferred, kind of the timing of that and how that&rsquo;s going to unfold? Maybe more Tony?</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sure. We&rsquo;re going to have an announcement
here shortly that we&rsquo;ll get to the marketplace. We&rsquo;re going to convert those right around the Christmas holiday per
the agreement, and those will convert to common prior to year-end of this year. So we&rsquo;ve had about 70,000 shares early convert,
and I suspect we&rsquo;ll have a bit more of those in between now and the actual full call date, which we&rsquo;re still getting
the exact date here in the next week or so.</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. I think that&rsquo;s it for me, guys.
I&rsquo;ll step back. I appreciate the time, and congrats on a nice quarter.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, thanks for joining, Brian.</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"><B>Anthony Cosentino</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This concludes our question-and-answer session.
I would like to turn the conference back over to Mark Klein, Chairman, President, and CEO, for any closing remarks.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



<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"></P>

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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"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, once again, thanks, everyone, for joining.
We look forward to reporting on our results for the full year in January, and that will be forthcoming, and we appreciate you joining
in our conference call and webcast today. Thank you and good-bye.</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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The conference has now concluded. Thank you
for attending today&rsquo;s presentation. You may not disconnect.</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">&nbsp;</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">&nbsp;</P>

<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: 6pt 0 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">October 29, 2019 at 9:30 a.m. Eastern</P>



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

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