<SEC-DOCUMENT>0001213900-20-010587.txt : 20200430
<SEC-HEADER>0001213900-20-010587.hdr.sgml : 20200430
<ACCEPTANCE-DATETIME>20200430124718
ACCESSION NUMBER:		0001213900-20-010587
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200424
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200430
DATE AS OF CHANGE:		20200430

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:		20834414

	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>ea121240-8k_sbfinancial.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: 0pt 0; text-align: center">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported)
<U>April 30, 2020 (April 24, 2020)</U></P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="padding: 0; 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="padding: 0; width: 2%">&nbsp;</TD>
    <TD STYLE="padding: 0; 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="padding: 0; width: 2%">&nbsp;</TD>
    <TD STYLE="padding: 0; 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="padding: 0; 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="padding: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Commission</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">File Number)</P></TD>
    <TD STYLE="padding: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(IRS Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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; padding-right: 5.4pt; padding-left: 5.4pt; 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; padding-right: 5.4pt; padding-left: 5.4pt; 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="padding-right: 5.4pt; padding-left: 5.4pt; 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="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Zip Code)</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
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    <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: 0pt 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: 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: 0pt 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: 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: 0pt 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: 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: 0pt 0"><B>&nbsp;</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: 0pt 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: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 34%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title of each class</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 32%; text-align: center; text-indent: 4.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Trading Symbol(s)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 32%; text-align: center"><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">Common Shares, No
Par Value 7,709,958 Outstanding at April 30, 2020</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: 0pt 0; text-align: center">The NASDAQ Stock Market, LLC</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(NASDAQ Capital Market)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 24, 2020,
SB Financial Group, Inc. (the &ldquo;Company&rdquo;) hosted a conference call and webcast to discuss its financial results for
the first quarter ending March 31, 2020. A copy of the transcript for the conference call and webcast is furnished as Exhibit 99.1
and is incorporated herein by reference.</P>

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

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

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

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

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

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid; text-align: center"><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: 90%; border-bottom: black 1.5pt solid; text-align: center"><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><A HREF="ea121240ex99-1_sbfinancial.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transcript of conference call and webcast conducted on April 24, 2020.</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-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: 0pt 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: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated:&nbsp;&nbsp;April 30, 2020</FONT></TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 36%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Anthony V. Cosentino</FONT></TD></TR>
<TR 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: 0pt 0">&nbsp;</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center; text-indent: -1in">Dated April 30,
2020</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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: 9%; border-bottom: black 1.5pt solid; text-align: center"><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: 90%; border-bottom: black 1.5pt solid; text-align: center"><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><A HREF="ea121240ex99-1_sbfinancial.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transcript of conference call and webcast conducted on April 24, 2020.</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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

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

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

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ea121240ex99-1_sbfinancial.htm
<DESCRIPTION>TRANSCRIPT OF CONFERENCE CALL AND WEBCAST CONDUCTED ON APRIL 24, 2020
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 99.1</B></P>

<P STYLE="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: 100%; border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt; 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; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">Q1 2020 Earnings Conference Call and Webcast</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 18pt">April 24, 2020 at 11:00 a.m. Eastern</FONT></TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt; font-size: 10pt">&nbsp;</TD></TR>
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    <TD STYLE="border-left: #4F81BD 2.25pt solid; padding: 0.15in 5.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>CORPORATE PARTICIPANTS</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Mark Klein - </B><I>Chairman</I><B>, </B><I>President, and
        Chief Executive Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Anthony Cosentino - </B><I>Chief Financial Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Ernesto Gaytan - </B><I>Chief Technology, Innovations, and
        Operations Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Jonathan Gathman - </B><I>Senior Lending Officer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Carol Robbins - </B><I>Senior Vice President and Controller</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&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; text-align: justify">&nbsp;</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 day and welcome to the SB Financial
Group First Quarter 2020 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 0. After today&rsquo;s presentation, there will be an opportunity
to ask questions. To ask a question, you may press star, then one on your touchtone phone. To withdraw your question, please press
star, then 2. Please note the 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 Carrol 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">Thank you, Allyssa. Good morning, everyone.
I&rsquo;d 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 ir.yourstatebank.com.</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; Ernesto Gaytan, Chief Technology, Innovation, and Operations 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.
Thank you for joining us. Welcome to our First Quarter 2020 Conference Call and Webcast. As with prior quarters, comments today
are a supplement to the earnings release we filed yesterday.</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">Clearly, these are uncertain times, and
we have spent considerable time and effort in the quarter protecting our clients, employees, and our communities while preparing
for our participation in the government&rsquo;s stimulus program and client forbearances that I&rsquo;ll discuss shortly. Reflective
of the tangible capital we raised and have earned over the last five years, coupled with our historically strong credit quality
metrics and liquidity, we feel we are well positioned to navigate this current crisis. We are confident that strong capital coupled
with a reputation for superior customer service and relationship banking will serve us well in these unprecedented 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">All that said, highlights for the quarter,
excluding the effects of the $2.2 million pretax mortgage servicing rate impairment, include net income of $2.4 million, down $350,000,
or approximately a 13 percent decrease over 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">&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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="text-align: right; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">April 24, 2020 at 11:00 a.m. Eastern</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">Pretax pre-provision earnings resulted
in a 3 percent improvement in our net income over the prior year. Adjusted return on average assets was 92 basis points, down from
the prior-year quarter of 95 basis points. Interest income expanded to $10.6 million, up $150,000. As a result, net interest income
improved to $8.5 million, an increase of $210,000. Loan balances for the quarter grew $5.3 million, improving our year-over-year
growth to over $48 million, or 6.2 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">Likewise, deposits grew and increased $24
million, or 4.4 percent, year over year. Expenses were up $800,000 due to higher mortgage commissions and the full quarter of our
title insurance agency. Mortgage origination volume increased this quarter to a robust $101 million, up over $51 million, or 97
percent, year-over-year. Asset quality metrics were elevated a bit in the quarter due to the decline of an asset-based commercial
loan, although our level of 61 basis points of non-performing assets remained strong.</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">Finally, significant progress was made,
and is being made, in processing customer forbearances and Paycheck Protection Program loans that I&rsquo;ll discuss shortly.</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 firmly remain committed to our five
key strategic initiatives&mdash;growing and diversifying revenue; more scale to organic growth as well as M&amp;A that we have
planned the second quarter of 2020; more products and services with our 30,000 households; excellence in operation and more intimacy
with client communications, particularly in these difficult times; and, lastly, 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">First revenue diversity&mdash;this quarter
mortgage volume and loan sale gains were up from the prior year, 97 percent on volume, 63 percent on loan sale gains. However,
non-interest income declined to $2.2 million from the prior-year quarter of $3 million, due to the mortgage servicing portfolio
impairment. Adjusting for that, non-interest income was up from the prior year over $650,000. Non-interest income to total revenue
declined to 20 percent but would have improved to 34 percent when accounting for the impairment.</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 mortgage pipeline continues to be near
capacity, with over 500 loans in process for approximately $117 million. Our numbers are spread across our four regions of Northwest
Ohio and Northeast Indiana, $21 million; West Central Ohio, Findlay with $16 million; Central Ohio, Columbus with $69 million;
and Central Indiana, Indianapolis Market for another $9 million. This quarter marked the one-year anniversary of Peak Title joining
our company, and the results have exceeded our expectations. Abby Waters and her team have integrated with our lending staff while
they&rsquo;ve maintained all of their prior banking/client relationships. We continue to introduce Peak to our State Bank commercial
clients, as appropriate. With the significant increase we are experiencing in mortgage volume, we certainly anticipate a record-setting
second quarter for this newer division of SB Financial.</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 came in at $1 million,
with loan sales of $436,000, a rather slow start to the year when compared to both the linked quarter and the year-ago quarter,
with loan sale gains of just $79,000. For the last two months, this space was dominated by our participation in the Treasury PPP
Lending Program. To date, under the first phase of the stimulus, we have approved over $74 million in loans to 414 businesses,
or over 99 percent of our clients that applied. All will be funded in a total of ten days, and I might add no backlog. Interestingly,
as planned, over 95 percent of our commitments were to existing clients. Average loan amount, $178,000; median level, just $71,000.
We intend to take advantage of our preferred lending status to prospect for more new clients in the next phase of PPP funding as
we have plans underway to potentially deploy another $25 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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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">We currently have 133 additional applications
for $6 million, with 48 prospects and 85 clients already in the queue and ready for funding. We intend to expand these new client
loans into full banking relationships, since capacity at some competitors to fund these loans has been constrained.</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 are now roughly one year into the entry
into the Indianapolis market, with a mortgage LPO. As we have discussed in prior quarters, we&rsquo;ve targeted the Indy market
due to similar market characteristics to our Dublin, Ohio operation, which, as we&rsquo;ve reported, has been very successful.
After, clearly, some early growing pains, we now have three lenders originating saleable mortgages. In fact, this quarter, we closed
$7 million, and our prospects, to deliver on our short-term goal of generating $50 million annually have improved.</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 now $427 million represent a pullback from the all-time high we achieved and reported December of 2019 of over $500 million.
Despite the headwinds of these market forces, we feel that this important business line, which is clearly unique to a bank our
size, provides a full service that a relationship-based client we seek desires.</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&mdash;more scale.
We came into 2020 with a very strong loan pipeline that has been impacted by the current pandemic situation, although we did grow
loans in every month of the quarter. In fact, we were able to add $5 million to our loan balances this quarter, but certainly well
below our expectations and historical growth levels. Loan growth from the prior year was up by $48 million, or 6 percent. Our Lima
and Columbus regions led the way, growing 37 percent and 16 percent, respectively.</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">Net interest income increased to $8.5 million,
or 2.5 percent, above the prior year, but flat to the linked quarter. Total assets now stand at $1.1 billion and reflect year-over-year
growth of $67 million, or nearly 7 percent. Our deposit base expanded to $864 million, up $24 million, or 3 percent. Year-over-year
deposit growth, up $36 million, or a 4.4 percent increase. The need for us to provide more options by which our clients can access
our services and their financial assets has been made much more evident in this past quarter. We have become more flexible and
innovative in how we engage with our clients, and the electronic aspect of client servicing, engagement, and delivery will continue
to accelerate.</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, deeper relationships, more services
per household This quarter outside-client calling efforts were rechanneled to phone calls and digital communications. When our
county literally shut down, we made a commitment to proactively contact 100 percent of our commercial clients to assure them that
we were prepared to provide for their liquidity requirements, when called upon. We believe that this proactive calling effort was
directly responsible for our successful participation in the PPP Lending Program I just mentioned. The requirements of the program
in terms of documentation, quick funding, and a tight approval window, certainly put our commercial teams to the test, but clearly,
they delivered.</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 dynamic referral process continues
to be a differentiator for our company, and we&rsquo;ve reported in prior quarters. This quarter we added over $22 million in new
business, from 222 closed referrals. This is nearly double what we achieved in the first quarter of 2019 and, over the last two-plus
years, one of our better referring 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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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">Operational excellence, our fourth theme.
We had a notable shift in our mortgage business mix in the quarter. For all of 2019, the split between internal refinanced and
new clients at State Bank was 19 percent internal, 81 percent new clients. In the first quarter of 2020, the percentage of internal
refinanced expanded to 24 percent, with the month of March coming in at nearly 30 percent. Given the size of our current pipeline,
we expect that higher internal refinance volume will continue well into the second quarter. Capacity optimization at both our processing
locations has been a key focus, as we were incredibly pleased to have been able to originate nearly $500 million in residential
real estate loans over the last four quarters, quite a testament to the hard work done by our originators, but clearly would not
have been possible without support from our back room and our operations staff. We have increased our servicing portfolio to over
8200 loans, with the principal balance now of $1.2 billion. Households up 7 percent, balances up 11 percent 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">Expense levels for the quarter were up
from the prior year, but when adjusted for the additional $50 million in mortgage volume expense, growth drops from 9 percent to
4. We have implemented a cost-reduction plan that includes a number of expense-containment initiatives in response to not only
the pandemic, but the rapid decline in short-term rates reflective of our asset-sensitive balance sheet. We understand how critical
expense control will be in 2020, given the business headwinds we&rsquo;re facing.</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 fifth and final key initiative&mdash;asset
quality. We have spent considerable time and effort in the quarter, and thus far in April, responding to our clients&rsquo; needs
for assistance and relief from the current business situation we find ourselves. We have approved forbearances for our clients
in nearly all business lines; a total of 588 loans, representing balances of approximately $171 million; 231 in sold residential
mortgages, representing over $40 million in balances; 290 commercial loans, representing over $107 million in balances, and the
remainder of 67 loans for $14 million in consumer loan balances.</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 quarter we had a spike in charge-offs
due to one asset-based inventory loan that we placed on non-accrual for $2.3 million. We were clearly disappointed about the sizable
impact this client had on our historically strong asset quality metrics. As a result, our reserve-to-non-performing coverage declined
to 136 percent, but still above the median of our peer group.</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">Finally, we have taken an expanded look
at new credit terms for businesses and clients as we anticipate the longer-term effects of a slower-growth or no-growth economy
going forward. Specifically, we have reduced LTVs on CRE deals; increased requirements for borrower liquidity to ensure ample debt
service coverage capacity, while assessing and reassessing internal approval requirements. I continue to have great comfort with
our historically strong credit approval process, including our dynamic loan review schedule.</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 now, I&rsquo;d like to ask Tony Cosentino
to provide some more details and color on our quarterly performance. 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, again, good morning,
everyone. For the quarter, we had GAAP net income of $681,000, or 9 cents per share. As Mark noted, our earnings were impacted
by the $2.2 million impairment on our mortgage servicing rights, and absent that impairment, that income would have been $2.4 million,
down $0.4 million, which is a 12.8 percent decrease.</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">Highlights in the quarter included operating
revenue down 5.6 percent from the prior year but up 7.3 percent, when we adjust for the OMSR impairment. Loan sales delivered gains
of $2.1 million from mortgage, small business, and agriculture, and margin revenue was higher by 2.5 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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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">As we break down further the income statement,
beginning with our margin, net interest income, as I indicated, was up from the prior year by 2.5 percent and flat to the linked
quarter. Our average loan yield for the quarter of 4.74 percent decreased by 16 basis points from the prior year, while overall
earning asset yield was down 46 basis points. We had anticipated higher loan growth in the quarter and had been overweight in cash
in anticipation of these fundings as well as preparing for any client liquidity needs. These higher liquidity levels had a downward
impact on our earning asset yield, and we expect our mix to improve in the second quarter as we will reduce cash levels, and mortgage
volume would be a positive to our margin, while the PPP program will increase the dollars of NIM slightly.</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 funding side, as expected, the quarterly
increase in the cost of interest-bearing liabilities we experienced throughout 2019, discontinued this quarter. For the quarter,
the rate on our interest-bearing liabilities was 1.12 percent, down from the prior year by 8 basis points and, importantly, down
from the linked quarter by 30 basis points. Net interest margin at 3.48 percent was down 33 basis points from the prior year, and,
as I said, we expect our margin to improve in the coming quarters, with higher mortgage fees and continued declines in funding
costs.</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 were down
by 3 percent from the prior year but down 20 percent from the linked quarter, and our margin income growth was also driven by loan
interest income of $9.9 million, which is up $0.4 million, or 4 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">Total non-interest income of $2.2 million
was down from the prior year, reflecting the impairment of our mortgage servicing rights and was offset by higher mortgage origination
volume. Adjusting for the impairment, non-interest income would have been up $0.7 million, or 18 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 the SBA arena, our originations were
down from the prior year, with volume of $1 million compared to $3 million in the prior-year quarter. Our results did include a
full quarter of revenue from our title agency and compared to the first quarter of 2019, increased revenue by $0.3 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">Second quarter mortgage production should
eclipse all records for our company. We also expect to improve upon our gain yields as hedge performance will trend higher with
reduced rate volatility expected.</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 quarter&rsquo;s real estate volume
from new clients was down from historic levels but still was 76 percent of total volume. Total gains on sale came in at $1.9 million,
which was 2.3 percent on our sold volume of $84.4 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">Our servicing portfolio of $1.22 billion
provided revenue for the quarter of $756,000 and is on pace to deliver $3.1 million in total revenue in 2020. The market value
of our mortgage servicing rights declined significantly this past quarter. Calculated fair value of 74 basis points was down 32
and 25 basis points from the prior-year and linked quarters and did result in a $2.2 million impairment. At March 31, 2020, our
mortgage servicing rights were $9 million, which is down 17 percent from the first quarter of 2019 and down 17 percent from the
first quarter of 2019 and down 19 percent from the linked quarter. Total impairment currently remaining is $3.5 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">Total operating expense in the quarter
of $9.4 million, up $0.8 million, or 9 percent, from the prior year, but compared to the linked quarter, expenses were down $0.8
million, or 7.6 percent. The higher level of mortgage volume drove compensation higher versus the prior year in addition to higher
medical costs.</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">Other expense growth from the prior year
was driven by higher digital banking costs as we had more users and some higher legal expenses. We also incurred higher costs related
to our mortgage hedging activities, as we discussed, due to not only the higher volume but also the higher volatility in the secondary
markets, and a full quarter for Peak Title compared to the prior year increased operating expense by $0.2 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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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">Now, as we turn to the balance sheet, loan
outstandings at March 31 stood at $830.8 million, which was 76.3 percent of the total assets of the company. We had growth of $48.2
million and asset growth of $67 million from the prior year, and we&rsquo;re up $5 million and $50 million, respectively, from
the linked quarter. Compared to the prior year, loan growth driven by two categories mainly&mdash;commercial real estate at $34.3
million, followed by commercial loans of $15.3 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">Deposit levels are up 4.4 percent from
the prior year as we lessened our aggressiveness on deposit gathering in response to our lower loan originations. Also, with our
eye on the Edon acquisition scheduled for the second quarter, we will have significant funding surplus of lower- cost core deposits,
when the transaction closes.</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 are participating
fully in the PPP funding facility, and we have structured the borrowings to fund the bulk, but not all, of the $74 million in PPP
loans. We are prepared to expand that borrowing capacity as needed to fund the second phase of this small business lending facility.</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 $135.9 million, which is up $4.4 million, or 3.4 percent, from March 31 of 2019, and our equity-to-asset ratio stands
at 12.5 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">In addition to our reported loan balances,
our clients could draw an additional $200 million on approved lines and commitments. In the unlikely event that that would occur,
our capital ratios would still be above our internal targets.</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">With the successful conversion of our preferred
shares in late 2019, tangible equity is up from the prior year by $18.4 million, or 18.4 percent. On a per-share basis, tangible
book is up a dollar per share from the first quarter of &rsquo;19. We have been able to buy back a number of shares below book
value this year, and we still have shares left under our 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">Regarding asset quality, total non-performing
assets of $6.7 million are up $2.4 million from the prior year but flat to the linked quarter. Included in our numbers are $0.8
million in accruing restructured credits. These restructured loans elevate our non-performing level by 8 basis points, and absent
those restructured credits, total non-performing ratio would reduce to 53 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">We understand that certain segments of
the economy will have an oversized negative impact from the buyers. For our portfolio, we have $73 million in these at-risk segments,
half of which is in the hotel category. However, only 15 percent of that $73 million is related to restaurants, bars, and sports
facilities. Taking into account these levels, our overall diverse portfolio concentration levels, and appropriate allowance levels
by category, we are cautiously positive regarding credit deterioration.</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 $.6
million, up from both the prior year and the linked quarter. As Mark indicated, we charged off an asset-based loan in the quarter
of $400,000. Our absolute level of loan loss allowance at $9 million is up form the prior year by 10.3 percent, and our allowance-to-loan-loss
percentage has increased from 1.04 a year ago to 1.08 percent currently.</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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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">Absentee impairment&mdash;our results were
largely in line with expectations in the quarter. Looking forward, we will see delays in the loan pipeline as our clients have
hit pause a bit, and potential credit metric weakness will be offset somewhat by the impact of not only the PPP program but our
forbearance activity, and, as we have also indicated, we were trending toward a record mortgage origination and mortgage revenue
quarter in Q2.</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thank you, Tony. No doubt this quarter
presented some opportunities as accordingly as well as challenges, including the servicing portfolio impairment that Tony discussed.
We anticipate that the economy and our markets will trend in much the same direction as the rest of the country, albeit with, again,
slower growth or no growth in the next six months. That said, we remain quite optimistic that our commercial mortgage and SBA business
lines will continue to provide the inertia for more earnings momentum well into the second quarter. Also, we just announced an
11 percent increase in our common dividend. As we said today, we expect the dividend level would continue our measured pace upward
throughout 2020.</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 want to thank all of our more than 250
employees for helping our clients and communities with their everyday financial needs over the past few months. Clearly, our senior
leaders have demonstrated exceptional flexibility and leadership under some pretty difficult 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">Now I&rsquo;ll turn the call back over
to you, Carrol, for additional questions.</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>QUESTIONS AND ANSWERS</B></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>Carol Robbins</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thank you, Mark. I&rsquo;d like to remind
everyone on the call today that this webcast will be available on our website at ir.yourstatebank.com.</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">Allyssa, we are now ready for our first
question.</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>Operator</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Thank you. We will now begin the question-and-answer
session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up
your handset before pressing the keys. To withdraw your question, please press star, then 2.</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 first question today comes from Brian
Martin of 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.</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">Hi, Brian.</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>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</P>

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

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<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>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Hey, I appreciate, Tony, your comment there,
just about the industries and kind of some potential risk or hot topics as far as the hospitality and the restaurants. Can you
just give a little color on how those are trending today and just, maybe just kind of give some comfort on maybe loan to values
for those properties, just get a sense for how you think those are going to play out as you go through this potential downturn?</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, Brian, just a couple comments. Jon
Gathman is with us, and rather than speculate a bit, if you don&rsquo;t mind, I&rsquo;d like to ask Jon to give us a few comments
with regard to those particular sectors.</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">Sure.</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">Sure. So, the short answer to your question
is&mdash;and remind me of the specific industries&mdash;or maybe you didn&rsquo;t cite the specific industries, but we have entered
into forbearance agreements with, like most banks, most all commercial loans that have requested one. And, as you might imagine,
we are at 79 percent of those industries that are considered at risk by our definition. By my definition, that&rsquo;s about 7.5
percent of our portfolio.</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 of those, it&rsquo;s a bit anecdotal
at the moment, but there&rsquo;s been no increase in delinquency in those, as they&rsquo;ve all been under forbearance. I fully
expect that we&rsquo;ll begin to see some pressure there. The average loan to values, to answer another part of your question,
the average is 66 percent, but that average is misleading. Of those that are at risk, we have not taken any high-risk loan-to-value
business, never above 80. Certainly, most of those are going to be in that 60 to 70 percent range, and we forecast marginal additional
losses from those at-risk industries, which, again, is 7.5 percent of our total portfolio.</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 biggest, I guess where they
sit today, no one&rsquo;s&mdash;they have the forbearance. So, and the&mdash;I guess they&rsquo;ll&mdash;the greatest chunks of
what&rsquo;s in that portfolio, is it really just the hotels, you said, were half of the portfolio. And then, you said&mdash;was
it restaurants, are 15 percent? Was that&mdash;did I&mdash;maybe I missed that. That was Tony&rsquo;s comment, I guess.</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>No. No, that is
correct, and I would just tell you, of the 7.5 percent exactly, almost exactly half is hotels. Of those hotels, we are at an average
loan-to-value of 56 percent. Again, average is misleading. There&rsquo;s a couple very good ones in there. Two of those, of the
total hotels, which is the bulk of the $16 million of the 35, $16 million have not requested forbearance and are, if there is such
a thing, cash rich at the moment, and absent a prolonged effect of the virus, they&rsquo;re in the situation to weather the storm
for the next three-to-six 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">So, we have seen zero increase in our delinquency
as we sit here today, understanding that the remaining 20-some million of hotels are under some level of forbearance, mostly not
necessarily just because they had to, because they could. We have entered into specific negotiations on two I&rsquo;m aware of
that total $12 million, which call it 8 percent of the 7.5 percent, so you&rsquo;re talking not quite one-tenth of the 7.5 at risk.
Those hotels, one is in Indy near an airport, and one is in Columbus, are both well situated depending on travel restrictions being
lifted to pick that business back up.</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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gotcha. Okay. And maybe just, there was
a little bit larger provision this quarter. I guess, just as you guys assess the situation, I mean, do you anticipate some reserve
building as you go forward? Just how should we think about, as this thing plays out and you guys get more color from your customers
and monitor the situation&mdash;and we&rsquo;ve seen a lot of banks get pretty proactive this quarter with reserve building&mdash;and
just kind of wondering how we should think about that for you guys in the coming 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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Brian, just a couple high-level comments.
Obviously, the PPP program, as well as forbearances, both generally bittersweet, but given the fact that it&rsquo;s bringing substantial
relief to our clients and putting them in a position to constrain their needed liquidity, we&rsquo;re pretty bullish on the loans
we&rsquo;ve put on our books the last ten years, albeit in the bull market that we&rsquo;ve had. But clearly, I know Jon and I
and on our office of strategic management have talked immensely about the potential opportunities that will be presented to us
in the PPP program, relative to our clients and potential fees, that there could be certainly a potential conversation of how it
is we may build for future potential stress in our portfolio. And, Jon, you can clean that up a little better.</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">No, I would just add, certainly your comments
are well founded. As we look at our ALLL for the first quarter, which as you know, ALLL largely looking backwards, model&mdash;our
credit quality has been so good for such a long time that we were somewhat limited, but we did make significant adjustments in
our environmental factors, as you might imagine, reflecting of the current environment. And I think, the increase in provision
was as much about those changes in environmental factors as it was that specific credit, but there was room in the reserve to handle
that specific credit. But we are certainly keeping our eye on the future and adjusting those environmental factors commensurate
with 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>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. You know, maybe just one on the PPP
for a minute. Can you just talk about&mdash;if you said it was $75 million or so&mdash;I think that&rsquo;s what it was what the
rate is on that, you anticipate? And just I guess I&rsquo;m trying to think if it&rsquo;s a 3 percent rate. I&rsquo;ll let you
give the number, but if it&rsquo;s a 3 percent rate, that would look like it&rsquo;s a couple million dollars, $2 million-plus
on the fee side. Just wondering, do you anticipate kind of the bulk of&mdash;I guess receiving the bulk of that benefit, if you
will, in kind of 2Q and 3Q, and maybe there&rsquo;s some stragglers or just how that comes in but just (a) the percentage, and
then (b) just how you&rsquo;re thinking about it coming into the income statement?</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">Brian, this is Mark. Just one comment.
From my seat, I am really optimistic about the applications we&rsquo;ve taken, you know, with the average of $170,000 and a median
of $71,000, we&rsquo;ve clearly toed the line on 414 applications that go to where the government had intended, which is to small
businesses.</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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Jonathan Gathman</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">That said, Jon, I know there&rsquo;s some
weighted numbers out there as to what it is potentially we might realize on fees on those 414 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>Jonathan Gathman</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, that is correct. We anticipate some
additional guidance. I know some came out yesterday on the fees and how we apply for those. But, as Mark said, I too am very pleased,
and, in fact, we took the additional step here at State Bank, of giving the customers what we knew, which unfortunately that&rsquo;s
been, as you know, a hurried program. But educating them on now what we knew and making sure that our borrowers and our lenders
are communicating about the expectations of the program.</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 maybe where your question was going
is we expect by and large this to be completely forgiven, and when we&rsquo;re done with this, to have a very small percentage
of additional credit that may not be forgiven by the federal government.</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, and, Brian, I would just add, it terms
of, as Mark and Jon both have said, in terms of the forgiveness of the client, relative to the fee side, indications and guidance
today are that we will get that within ten days of funding. So, our expectation is all of our first tranche will be funded by end
of day today, so we would anticipate by no later than mid-May at the worst, that all those fees would inure to us. Again, I would
suspect most banks are going to look at that relative to their provisions and everything else going forward, and based upon our
median, our level is probably going to be 3 to 3.5 percent, depending on where we are.</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 if Tony, if those&mdash;so you
start collecting the fees, like you say, May 1<SUP>st</SUP> or early&mdash;I guess, this quarter, do &mdash; if those are only
out there for 90 days&mdash;so, you know, if you think about the split of how much revenue you could get, if they&rsquo;re all
going away after 90 days, which I understand isn&rsquo;t it&rsquo;s the optimistic outlook, but if they were to all go away in
90 days, would the bulk of the revenue, then, be realized in third quarter? I guess as you kind of think about it, you&rsquo;ll
collect some fees for the two months you have them in 2Q, and then, you know, the bulk of that would just have a big spike in third
quarter. Is that how we would think 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">It would be the opposite. We would inure
all of the fee side in Q2, and then,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">whatever else on the margin side, that
60 to 65-basis point spread between the 1 and the 35 ongoing, our expectation is 80 percent of our $75 million will fully get provided
and forgiven in the eight-week period. So we&rsquo;ll have an increase in balances on an average basis that will flow back down
by 3Q and 4Q.</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, one comment. As I said in my
remarks, we were quite pleased with 95 percent of our numbers going to known clients that we have, so we&rsquo;ve not taken a flyer
on anything yet, where we&rsquo;ve just allowed anybody to come in the front door and do a PPP. I mean, this is clearly for small
businesses and our clients, predominantly.</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">That said, this next round we&rsquo;re
looking at taking just a little bit of a bigger bite on the prospect side, because we literally think there are a number of competitors
out there who, number one, are not prepared to handle the backlog. And we think we can marginally move to a little higher level
with this new $310 billion that was just approved.</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>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</P>


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

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<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>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Gotcha. Okay. Yes, there&rsquo;s just a
lot of uncertainty. A couple banks have said they would bring that fee in over a 24-month period, so they would start taking the
fee, you know, 1/24<SUP>th</SUP> of it, and when it did pay off, they&rsquo;d get the bulk of it. It doesn&rsquo;t sound like maybe
that&rsquo;s the way you&rsquo;re thinking about it. So I guess until there&rsquo;s more clarity, it&rsquo;s just going to be a
moving target for a lot of people but thank you for the color on 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">So, how about just one, Tony, just as it
relates to the margin, and there&rsquo;s a lot of moving parts in there, I guess, when you think about the rate, the emergency
rate cuts we had. You guys, as you kind of mentioned, the mortgage fees that are coming in the next two quarters, you know, are&mdash;typically
come, and then your ability to reduce and be proactive on the funding side. Just if you kind of boil it down, I guess how are you
thinking about the margin, at least in the second quarter today and then just directionally kind of thereafter, given no real change
in the rate environment from where we are?</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, and I&rsquo;m sure Mark will have
some commentary. You know, as I&rsquo;ve indicated in the comments, we were maybe a little overly cautious on liquidity. We weren&rsquo;t
really sure what was going to happen with some of our clients and where expectations were going to go. We had, as we talked about,
$200 billion of potential utilization, and our clients have stayed relatively stable and secure, and we felt good about that, but
we didn&rsquo;t want to be caught unawares. So we were a little heavy on cash. The mix impacted us certainly in 1Q. That&rsquo;s
going to go away here in the second quarter. We&rsquo;re going to fund the PPP program, a portion of that, with internal funding,
and we started to lower deposit rates at that March 1 timeframe, and we&rsquo;ve continued to move rates down on a very good trend,
so the bulk of that&rsquo;s going to show up in 2Q. And then I think the big mortgage pop that we&rsquo;re going to have in 2Q
is going to drive. And as we look at it, the increase in earning assets balance was kind of offset by price, and we got to the
same place we were. I think price will get a little better in 2Q, and our earning asset balance will come down $15 million to $20
million or so, because we&rsquo;re not seeing the loan pipeline outstandings we expected.</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 the other part to that comment, Tony,
does not generally include the $48 million that we anticipate coming from the Edon acquisition, albeit at most likely it was 36
basis points, probably going to go down dramatically, not any better than the 35 basis points we have with the Fed, but clearly
a lot less than our current marginal cost of funding at 1.12 or so. So, that&rsquo;ll help us on a little bit upfront and give
us a little margin lift.</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>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, okay. So, directionally, Tony, it
should be up in 2Q and then it probably gets&mdash;it&rsquo;s up even further in third quarter absent something going on with the
acquisition of Edon. I mean, I&rsquo;m not&mdash;and I&rsquo;m leaving out the PPP for the moment, just looking at &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>Brian Martin</B>--the other components,
the liquidity, the funding side you&rsquo;re making changes to, but directionally up in 2Q and then maybe even up a little bit
more in 3Q as you sit 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">I would concur with that, yes. That&rsquo;s
my our expectation.</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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes. Okay. Perfect. That is helpful, and
how about just your update, I guess if you can, on &mdash; or just your outlook, if you would, on mortgage? Just kind of where
you see kind of production for the year, and then, you know, the gain-on-sale margin, just as you&rsquo;re kind of thinking about
things today, that&rsquo;s changed a little bit this quarter, but the refinance activity, I&rsquo;m sure it played a part, so just
trying to understand that dynamic as we go forward.</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, Brian. This is Mark, and we
remain very bullish on mortgage lending. As we indicated, we&rsquo;re on a basic run rate of $500 million. We&rsquo;re currently
having conversations with Ernesto Gaytan leading those conversations on how do we prepare ourselves, given the markets we&rsquo;re
in, of Indianapolis, Columbus, and all of Northwest Ohio? How do we prepare ourselves to do more with less, with more engaged process,
with new software, and potentially working smarter here, so that we can do $750 million pretty soon 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">You&rsquo;d think that as rates bottom
out, the refinancing of our portfolio will begin to subside a bit, again, as we move into, I think, the next two or three quarters.
But, that said, we continue to see some improvement on the purchase side. Some of our competitors have announced that they&rsquo;re
not doing anything on the purchase side unless there&rsquo;s 20 percent down and a 700 credit bureau. We think there&rsquo;s still
some opportunity in there, although we continue to be quite prudent on how it is, we&rsquo;re doing PCG kind of mortgages as well
as Freddie/Fannies. So, we&rsquo;re still bullish on the business line, but I think we&rsquo;ll probably see some eventual decline
of refinancing our own portfolio once everyone gets down to 3 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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">And if I might add, Brian, I think Mark&rsquo;s
spot on in terms of volume. I think we&rsquo;re going to have, as we said, a record-setting level in the second quarter, based
upon what&rsquo;s already closed and what we anticipate in the pipeline. And I would say, you know, candidly, I&rsquo;ve been around
the mortgage business a long time, it was one of the tougher pricing markets we&rsquo;ve ever seen in terms of secondary, in terms
of correspondent pricing, in terms of what people were giving you on the back end to buy product, and there were a lot of lenders
that got kind of caught out with bad pricing, and, we hung in there a little bit. But we paid a little bit of a price on the hedge
and what we backed off on, due to volatility. I anticipate rate volatility to significantly subside, and we&rsquo;ll start to make
a little bit more money on the yield side and on our hedged side. So, that&rsquo;s why I anticipate that it&rsquo;s going to be
much better here in 2Q</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 one&hellip;</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">One side bar, just one side bar. We have
begin to do a little bit more strategic thinking about how it is we can potentially differentiate how we approach pricing in four
distinct different markets, which we think will give us a little bit of opportunity to, again, determine how do we go from a $500
million run rate to $750 million, albeit with a little bit more of a regional approach to pricing and closing and processing? And
Ernesto is leading the charge for us in that arena.</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, and I was just going to ask.
Tony or Mark, is the gain-on-sale margin it should maybe think about being a little bit lower than where it&rsquo;s at today as
you go into the next couple quarters? I think it was around 2.3 percent as we sit today, and&hellip;</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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">I would expect that would be the floor
that we would look at going forward. I mean, you know, we were kind of at a 2.5 range or so for 2019 all in, when we look at everything.
So I would expect we&rsquo;ll be a little bit better here in 2Q.</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. That&rsquo;s helpful, and
maybe just one more was just on the cost reduction plan. If you can just give a little bit of color on, I guess, the impact or
just if you look at the current level of expenses, however you can talk about that, just your expectations for the expenses as
you go forward here, outside of the ebbs and flow that come with the incentive for mortgage, just kind of the core rate that we&rsquo;re
looking at from an expense standpoint?</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, I think, you know, as we looked at
operating expenses for the quarter, obviously, you know, relative to the prior year, you have a bit of the noise with much higher
mortgage volume and the Peak Title impact, but if we look at the linked quarter, we had some incentive things in Q4 that came off
the table here the first quarter of &rsquo;20. You know, we think this is a relatively solid run rate.</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 think we don&rsquo;t know today what
the expectations will be for reopening locations and how customer interaction is going to happen. We just don&rsquo;t know what
that level of cost containment and/or differentiation&rsquo;s going to be. We have a sense of what that&rsquo;s going to be, and
we think we&rsquo;ve put some things in place relative to compensation and some other things that we think will help us going forward.</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, Brian, from a granular perspective,
really looking at very, very limited changes in compensation, if at all, looking at contributions to ESOP, looking at incentive
plans, looking at travel, looking at marketing, looking at conference expenses, all kinds of things we&rsquo;re looking hard at,
we&rsquo;ve put a hiring freeze on to make sure there&rsquo;s not just business as usual. Just because somebody was in a position
doesn&rsquo;t mean we&rsquo;re going to replace them all. And so, we&rsquo;re just, as I mentioned several years ago, we were 100
percent optimistic and no pessimism in &rsquo;18. In &rsquo;19, we went to maybe 80 percent optimistic, 20 percent pessimistic,
and then coming into &rsquo;19 maybe a little more pessimistic. And now here at 2020, I think those thoughts and approaches to
business have really found us well in terms of where we&rsquo;ve landed here now in 2020, albeit in a pandemic that no one expected.</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&rsquo;re just looking at everything
on a number of fronts, knowingly that it&rsquo;s probably going to continue to get more difficult as we move into a no-growth economy,
and we will clearly see how good we have been at underwriting credits that we think we&rsquo;ve been pretty good at and at a pretty
good process for taking credits to Officers&rsquo; Loan Committee and having four or five people look at the credit before we got
involved. So we&rsquo;re cautiously optimistic on where we go in the midst of less activity and constraining expenses in the process.</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 you guys made some comments
about just loan growth being a little bit slower here, which makes a lot of sense. Can you just as you guys look at the two thing,
I guess-- just maybe your outlook, as you think today high level about &rsquo;21, you know, what level, if you were projecting
whatever level of growth you were thinking in &rsquo;21, are you backing off that number from what you were thinking as we sit
today given what&rsquo;s gone on? And then be&mdash;just if you can. So, that&rsquo;s one. And then the second question is if you
could just comment on the timing of the close of Edon and just how that&rsquo;s proceeding. That&rsquo;s it, that I had.</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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yeah, this is Mark, and then, Jon, I&rsquo;d
like to ask Jon for obviously some comments and perspective. But relative to loan demand, as we&rsquo;ve disclosed, Brian, for
I think a number of quarters in several years, we&rsquo;ve been elated being at the median level of growth. We&rsquo;ve never aspired
to be in the 75<SUP>th</SUP>, like we do on everything else, in terms of performance. We&rsquo;ve been really happy at 5-to-7 percent,
medium- to high-digit single-digit growth in the lending arena, so I think that&rsquo;s going to play well to the position we find
ourselves in now here in 2020. So Jon will have some more comments.</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">With regard to Edon, we&rsquo;re steaming
along nicely. The full expectation is that we&rsquo;ll get that done in the second quarter, from a financial perspective and integration,
and then literally, in the third quarter from an operational perspective, full integration, full name change, and everything in
the middle.</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 so, Jon, more comments on that, you
know, loan demand perspective &rsquo;20/&rsquo;21?</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 agree with what Mark said. We have
the right people and we&rsquo;re in the right markets. We expect to be at that median or slightly above median level. We&rsquo;ve
got some really, really key people in those markets and in the right markets. That said, what that median level of growth is, as
we look at the third and fourth quarter, that will be the challenge, and we have realistic expectations of what that might look
like. But we expect to fare as well or better than our peers.</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">That&rsquo;s a great comment.</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 what&rsquo;s the new normal, what&rsquo;s
the new median? So that will be the key, Brian. What&rsquo;s the new normal, the new median, and what&rsquo;s the GDP going to
be, and where do we go from 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>Brian Martin</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">And how many more stimulus programs are
left, or how many can they monetize and&mdash;going forward?</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, a lot of uncertainties. So, well the
Edon deal was going to take some of that excess liquidity and put it to work, so I guess it could just change a little bit of the
dynamics or just maybe push it out a little bit depending on the level of growth, is probably the way we should think 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>Mark Klein</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, I think, Brian, the high level &mdash;
and you know all this &mdash; clearly, with forbearances, and Jon and I have talked about this, is with forbearances and PPP, we&rsquo;re
going to delay principal paydown just by default, and if we do that for three to six months and get some regulatory guidance on
how far we can go, and you add PPP in that. And some clients are still taking advantage of the landscape, the people that put themselves
in a position with liquidity and have a good business model. We think we&rsquo;ve put ourselves in a position to capitalize on
whatever small growth is going to be out there. So we remain cautiously optimistic, and we hope we can come through this at the
end of 2020 looking like we had a pretty good solid model coming into the beginning of the 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: 0pt 0; text-align: right">SB Financial Group</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Brian Martin</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes. Okay. Well, that all sounds good.
Well, I appreciate all the color. Thanks for taking my questions.</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">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>Jonathan Gathman</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Take care, 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">Again, if you have a question, please press
star, then 1.</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 next question comes from Toni Molinari
of Cutler Capital Management. 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></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">Good morning, Toni.</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>Toni Molinari</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">I was hoping you could shed some color
on the credit-stress estimate you&rsquo;ve done for your commercial portfolio and what the results look like, and if you could
include things like unemployment rates and cap rates that would be helpful.</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">What I can tell you is, we have looked
at&mdash;I mentioned the number 7.5 percent of our&mdash;those are first wave, at risk industries, and we have completed 100 percent
of reviews on all of those. As Mark said earlier, we would expect our borrowers, if we&rsquo;re doing proper underwriting, to be
able to weather a short-term storm, and, as we sit here in April, I think that&rsquo;s what we&rsquo;ve seen. Now, we&rsquo;ve
assessed all those for cash, liquidity, capital going forward in terms of actual cap rates and stress testing, we have not done
that at this moment.</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>Toni Molinari</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Okay. Thanks. And then if you could provide
a little more color on the forbearance program that you&rsquo;re offering. Is it 60 days, 90 days, four 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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</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"><B>Anthony Cosentino</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Yes, I would say with the exception of
Freddie Mac that has their own set of rules, and we&rsquo;re SBA, any government agency that has their own set of rules, on our
internal portfolio, we&rsquo;ve started with the policy, we&rsquo;ve done 60-day curtailment waiver on all four plans in three
months or 90 days of principal, largely principal forbearance, principal and interest for all categories of loans, with the knowledge
that three months may not be enough, and we&rsquo;ll be assessing that here in probably early May.</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">Toni, interesting to note, of course, as
you&rsquo;re well aware, we have probably a residual portfolio, maybe $20 million, Jon, on SBA on our books at a weighted deal,
the 7-plus. And recently we did the calculation. With a six-month forbearance coming from SBA, we&rsquo;re going to receive about
$500,000 to $550,000 per month for six months, on behalf of our residual portfolio for the clients that we&rsquo;ve done SBA loans
on. So, that&rsquo;s going to be a great relief, as you&rsquo;re well aware, to all of our SBA clients. Hard to figure out where
the government&rsquo;s getting all the money, but we kind of sort of know where they&rsquo;re getting it. But that&rsquo;s going
to be a positive for the business line that we&rsquo;ve been doing for actively five years now.</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>Toni Molinari</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Great. Thank you. That&rsquo;s really helpful.</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">Take care.</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.</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 like to turn the conference back
over to Mark Klein 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"><B>CONCLUSION</B></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">Once again, thanks, everyone, for joining
with us this morning on our first quarter webcast and conference call. We look forward to certainly connecting with you in July
for our second quarter results, which should include the closing of our acquisition of Edon State Bank. Thanks for joining and
good-bye.</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>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 now disconnect<B>.</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">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; margin: 0pt 0">April 24, 2020 at 11:00 a.m. Eastern</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">17</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>

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