Exhibit 99.1

 

SB Financial Group Announces First Quarter 2022 Results

DEFIANCE, OH, April 28, 2022 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the first quarter ended March 31, 2022.

First quarter 2022 highlights over the prior-year first quarter include:

● Net income of $2.8 million; diluted earnings per share (“EPS”) of $0.40 reflecting a 58.8 percent decrease year over year

● Adjusted net income, excluding the positive impact of the Originated Mortgage Servicing Rights (“OMSR”) recovery of $890,000 was $2.1 million, with EPS of $0.30

● Mortgage origination volume of $97.4 million, reflects a decrease of $58.4 million, or 37.5 percent

The twelve months ended March 31, 2022 over the prior-year twelve months include:

● Loans increased $56.1 million, or 7.1 percent year over year excluding the impact of Paycheck Protection Program (“PPP”) loan balances in 2022 and 2021 of $0.8 and $54.4 million, respectively

● Deposits increased by $17.9 million, or 1.6 percent to $1.14 billion

Highlights		Three Months Ended
($ in thousands, except per share & ratios)		Mar. 2022				Mar. 2021				% Change
Operating revenue		$	14,279			$	20,547				-30.5	%
Interest income			9,395				10,705				-12.2	%
Interest expense			918				1,080				-15.0	%
Net interest income			8,477				9,625				-11.9	%
Provision for loan losses			-				750				-100.0	%
Noninterest income			5,802				10,922				-46.9	%
Noninterest expense			10,859				10,909				-0.5	%
Net income			2,813				7,081				-60.3	%
Earnings per diluted share			0.40				0.97				-58.8	%
Return on average assets			0.83	%			2.21	%			-62.4	%
Return on average equity			8.08	%			19.78	%			-59.2	%
Non-GAAP Measures
Adjusted net income		$	2,110			$	4,943				-57.3	%
Adjusted diluted EPS			0.30				0.68				-55.9	%

“We had a solid start to the year, with positive loan growth and meaningful mortgage volume considering the rate headwinds” said Mark A. Klein, Chairman, President, and CEO of SB Financial. “Asset quality remained strong with minimal net charge-offs in the quarter and the completion of the sale of the large OREO property.”

RESULTS OF OPERATIONS

Consolidated Revenue

Total operating revenue, consisting of net interest income and noninterest income, of $14.3 million was down 30.5 percent from the first quarter of 2021, and down 8.9 percent from the linked quarter.

● Net interest income was down from the year-ago quarter by 11.9 percent, and down 6.6 percent from the linked quarter as the impact of PPP forgiveness declined.

● Net interest margin on a fully taxable equivalent (“FTE”) basis was down from the year-ago and linked quarter by 53 and 21 basis points respectively, as cash balances continued to be higher than normal, and PPP balances were down to $792,000 at March 31, 2022.

● Noninterest income was down 46.9 percent from the year ago quarter due to lower mortgage volume and gain on sale yields. The year over year impact of the OMSR recapture decreased $1.8 million.

Mortgage Loan Business

Mortgage loan originations for the first quarter of 2022 were $97.4 million, down $58.4 million, or 37.5 percent, from the year-ago quarter. Total sales of originated loans were $72.2 million, down $64.6 million, or 47.2 percent, from the year-ago quarter. The Company’s mix of origination continued to move away from refinance in the quarter, as new purchase and construction lending was $61.5 million (63 percent) of volume, with external refinance at $22.1 million (23 percent) and internal refinance at $13.8 million (14 percent).

Net mortgage banking revenue, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $2.9 million for the first quarter of 2022, compared to $8.2 million for the year-ago quarter. The mortgage servicing valuation adjustment for the first quarter of 2022 was a positive $890,000, compared to a positive adjustment of $2.7 million for the first quarter of 2021. The aggregate servicing valuation impairment ended the quarter at $566,000. The servicing portfolio at March 31, 2022, was $1.38 billion, up $71.5 million, or 5.5 percent, from $1.30 billion at March 31, 2021.

Mr. Klein noted, “Mortgage originations of $97 million reflected the decline in refinance volume, which was down from the linked quarter and the prior year. We recaptured nearly $900,000 on our service rights impairment in the quarter due to the sharp increase in rates. We remain committed to the residential mortgage business line as it continues to be a gateway into more households, and an opportunity to deepen our level of services to existing ones.”

Mortgage Banking
($ in thousands)		Mar. 2022				Dec. 2021				Sep. 2021				Jun. 2021				Mar. 2021
Mortgage originations		$	97,394			$	126,611			$	152,623			$	164,883			$	155,836
Mortgage sales			72,154				110,543				123,083				119,064				136,708
Mortgage servicing portfolio			1,375,554				1,362,962				1,341,439				1,323,804				1,304,097
Mortgage servicing rights			13,135				12,034				11,194				10,678				10,490
Mortgage servicing revenue
Loan servicing fees			861				850				850				830				859
OMSR amortization			(547	)			(807	)			(943	)			(948	)			(1,187	)
Net administrative fees			314				43				(93	)			(118	)			(328	)
OMSR valuation adjustment			890				581				248				(99	)			2,706
Net loan servicing fees			1,204				624				155				(217	)			2,378
Gain on sale of mortgages			1,676				3,194				3,947				4,255				5,859
Mortgage banking revenue, net		$	2,880			$	3,818			$	4,102			$	4,038			$	8,237

2

Noninterest Income and Noninterest Expense

SB Financial’s noninterest income for the quarter was down 47 percent from the prior year period, primarily due to the decline in net mortgage banking revenue. The mortgage loan gain on sale yields were down 197 basis points from the prior year and the volume of loans sold was down due to volume and the retention of a higher percentage of originations placed on the Company’s balance sheet. Wealth management revenue was up nearly 5 percent from the prior year due to higher retention levels and growth in the equity sector. SB Financial’s Title Agency grew revenue in the quarter to $602,000, up by nearly 16 percent from the prior year period.

For the first quarter of 2022, noninterest expense of $10.9 million was down 0.5 percent from the prior year period. The flat expense relative to the prior year was due to mortgage activity and open positions, offset by higher spending on technology.

Noninterest Income / Noninterest Expense
($ in thousands, except ratios)		Mar. 2022				Dec. 2021				Sep. 2021				Jun. 2021				Mar. 2021
Noninterest Income (NII)		$	5,802			$	6,589			$	6,649			$	6,537			$	10,922
NII / Total Revenue			40.6	%			42.1	%			39.9	%			41.7	%			53.2	%
NII / Average Assets			1.7	%			2.0	%			2.0	%			2.0	%			3.4	%
Total Revenue Growth			-46.9	%			-13.7	%			-15.3	%			-10.3	%			91.9	%
Noninterest Expense (NIE)		$	10,859			$	11,567			$	11,256			$	11,076			$	10,909
Efficiency Ratio			75.9	%			73.7	%			67.4	%			70.5	%			53.0	%
NIE / Average Assets			3.2	%			3.5	%			3.4	%			3.3	%			3.4	%
Net Noninterest Expense/Avg. Assets			-1.5	%			-1.5	%			-1.4	%			-1.4	%			0.0	%
Total Expense Growth			-0.5	%			8.3	%			-0.7	%			-5.0	%			16.0	%

3

Balance Sheet

Total assets as of March 31, 2022, were $1.34 billion, up $9.3 million, or 0.7 percent, year over year due to higher deposit levels, driven by remaining PPP related funds and lower consumer spending. Total shareholders’ equity as of March 31, 2022, was $132.6 million, down 7.9 percent year over year, and represented 9.9 percent of total assets. Total equity reflected common stock repurchases and unrealized net losses on securities available for sale, which reduced other comprehensive income by $11.8 million in the first three months of this year. Tangible book value declined due to the above as well as the 5 percent stock dividend completed in the quarter.

Total loans held for investment were $850.7 million at March 31, 2022, up $2.5 million, or 0.3 percent, from March 31, 2021. Excluding PPP activity from both years, loan balances were up $56.1 million, or 7.1 percent, from the prior year and up $29.2 million, or 3.6 percent, from the end of the linked quarter.

The investment portfolio of $270.6 million, represented 20.3 percent of assets at March 31, 2022, and was up 47.7 percent year over year. Deposit balances of $1.14 billion at March 31, 2022, increased by $17.9 million, or 1.6 percent, since March 31, 2021.

Mr. Klein continued, “Loan growth was a real positive in the quarter as we saw pipeline realization and we were able to reclaim several credits that we had participated out in prior years. We are still seeing a higher level of payoffs and loan pricing has remained very competitive. As we indicated last quarter, we sold the large OREO property during the quarter and now have non-performing assets down to a level of 42 basis points at period end.”

Loan Balances																						Annual
($ in thousands, except ratios)		Mar. 2022				Dec. 2021				Sep. 2021				Jun. 2021				Mar. 2021				Growth
Commercial		$	124,857			$	122,373			$	138,085			$	149,998			$	179,157			$	(54,300	)
% of Total			14.7	%			14.9	%			16.3	%			17.6	%			21.1	%			-30.3	%
Commercial RE			400,101				381,387				387,858				389,287				385,403				14,698
% of Total			47.0	%			46.4	%			45.8	%			45.8	%			45.4	%			3.8	%
Agriculture			55,741				57,473				57,374				50,895				48,405				7,336
% of Total			6.6	%			7.0	%			6.8	%			6.0	%			5.7	%			15.2	%
Residential RE			214,015				206,324				207,571				203,294				176,998				37,017
% of Total			25.2	%			25.1	%			24.5	%			23.9	%			20.9	%			20.9	%
Consumer & Other			55,957				55,157				55,660				57,039				58,213				(2,256	)
% of Total			6.6	%			6.7	%			6.6	%			6.7	%			6.9	%			-3.9	%
Total Loans		$	850,671			$	822,714			$	846,548			$	850,513			$	848,176			$	2,495
Total Growth Percentage																							0.3	%

Deposit Balances																						Annual
($ in thousands, except ratios)		Mar. 2022				Dec. 2021				Sep. 2021				Jun. 2021				Mar. 2021				Growth
Non-Int DDA		$	252,273			$	247,044			$	258,857			$	240,572			$	273,026			$	(20,753	)
% of Total			22.2	%			22.2	%			23.3	%			22.0	%			24.4	%			-7.6	%
Interest DDA			211,152				195,464				189,130				187,023				191,593				19,559
% of Total			18.6	%			17.6	%			17.0	%			17.1	%			17.1	%			10.2	%
Savings			236,394				237,571				246,414				235,231				218,260				18,134
% of Total			20.8	%			21.3	%			22.2	%			21.6	%			19.5	%			8.3	%
Money Market			289,699				276,462				258,741				255,512				249,088				40,611
% of Total			25.5	%			24.8	%			23.3	%			23.4	%			22.2	%			16.3	%
Time Deposits			148,553				156,504				158,518				172,696				188,229				(39,676	)
% of Total			13.1	%			14.1	%			14.3	%			15.8	%			16.8	%			-21.1	%
Total Deposits		$	1,138,071			$	1,113,045			$	1,111,660			$	1,091,034			$	1,120,196			$	17,875
Total Growth Percentage																							1.6	%

4

Asset Quality

SB Financial reported nonperforming assets of $5.6 million as of March 31, 2022, which was down $890,000 or 13.8 percent year over year. The Company recorded $1,000 in net charge-offs in the quarter. The loan loss reserve of $13.8 million is up $478,000 or 3.6 percent year over year and represents 1.62 percent of total loans. OREO balances declined as a result of the sale of a large real estate property.

Nonperforming Assets																						Annual
($ in thousands, except ratios)		Mar. 2022				Dec. 2021				Sep. 2021				Jun. 2021				Mar. 2021				Change
Commercial & Agriculture		$	142			$	143			$	144			$	375			$	615			$	(473	)
% of Total Com./Ag. loans			0.08	%			0.08	%			0.07	%			0.19	%			0.27	%			-76.9	%
Commercial RE			544				554				566				1,026				2,402				(1,858	)
% of Total CRE loans			0.14	%			0.15	%			0.15	%			0.26	%			0.62	%			-77.4	%
Residential RE			3,198				2,484				2,056				1,751				2,138				1,060
% of Total Res. RE loans			1.49	%			1.20	%			0.99	%			0.86	%			1.21	%			49.6	%
Consumer & Other			409				471				422				463				480				(71	)
% of Total Con./Oth. loans			0.73	%			0.85	%			0.76	%			0.81	%			0.82	%			-14.8	%
Total Nonaccruing Loans			4,293				3,652				3,188				3,615				5,635				(1,342	)
% of Total loans			0.50	%			0.44	%			0.38	%			0.43	%			0.66	%			-23.8	%
Accruing Restructured Loans			762				725				805				758				794				(32	)
Total Change (%)																							-4.0	%
Total Nonaccruing & Restructured Loans			5,055				4,377				3,993				4,373				6,429				(1,374	)
% of Total loans			0.59	%			0.53	%			0.47	%			0.51	%			0.76	%			-21.4	%
Foreclosed Assets and Other Assets			527				2,104				1,601				1,603				43				484
Total Change (%)																							1125.6	%
Total Nonperforming Assets		$	5,582			$	6,481			$	5,594			$	5,976			$	6,472			$	(890	)
% of Total assets			0.42	%			0.49	%			0.42	%			0.46	%			0.49	%			-13.8	%

Webcast and Conference Call

The Company will hold a related conference call and webcast on April 29, 2022, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 23 offices; 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 24 full-service ATMs. State Bank has five loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.

In April 2022, SB Financial was named to the Keefe, Bruyette & Woods, Inc. “Bank Honor Roll” of superior performers that consistently reported increased in earnings per share over the last decade. The honor roll review determined that just 17 banks in the U.S., including SB Financial, or 5 percent of all banks screened, qualified for inclusion.

5

Forward-Looking Statements

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, the duration and scope of the COVID-19 outbreak in the United States and the market areas in which SB Financial and its subsidiaries operate, including the impact to the state and local economies of prolonged shelter in place orders and the pandemic generally, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the non-GAAP items of OMSR impairment and merger related costs from net income to report an adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Investor Contact Information:

Mark A. Klein

Chairman, President and

Chief Executive Officer

Mark.Klein@YourStateBank.com

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

###

6

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

		March				December				September				June				March
($ in thousands)		2022				2021				2021				2021				2021
ASSETS
Cash and due from banks		$	130,003			$	149,511			$	138,015			$	154,993			$	206,036
Interest bearing time deposits			1,894				2,643				2,651				2,906				3,562
Available-for-sale securities			265,311				263,259				248,815				211,756				177,918
Loans held for sale			4,737				7,472				10,335				8,731				8,689
Loans, net of unearned income			850,671				822,714				846,548				850,513				848,176
Allowance for loan losses			(13,804	)			(13,805	)			(13,812	)			(13,306	)			(13,326	)
Premises and equipment, net			23,039				23,212				23,874				24,343				23,233
Federal Reserve and FHLB Stock, at cost			5,303				5,303				5,303				5,303				5,303
Foreclosed assets and other assets			527				2,104				1,601				1,603				43
Interest receivable			2,815				2,920				2,954				3,000				3,371
Goodwill			23,239				23,191				22,091				22,091				22,091
Cash value of life insurance			17,932				17,867				17,795				17,721				17,651
Mortgage servicing rights			13,135				12,034				11,194				10,678				10,490
Other assets			10,328				12,430				12,361				12,175				12,630
Total assets		$	1,335,130			$	1,330,855			$	1,329,725			$	1,312,507			$	1,325,867
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand		$	252,273			$	247,044			$	258,857			$	240,572			$	273,026
Interest bearing demand			211,152				195,464				189,130				187,023				191,593
Savings			236,394				237,571				246,414				235,231				218,260
Money market			289,699				276,462				258,741				255,512				249,088
Time deposits			148,553				156,504				158,518				172,696				188,229
Total deposits			1,138,071				1,113,045				1,111,660				1,091,034				1,120,196
Short-term borrowings			19,035				15,320				20,771				25,096				24,321
Federal Home Loan Bank advances			5,500				5,500				5,500				5,500				8,000
Trust preferred securities			10,310				10,310				10,310				10,310				10,310
Subordinated debt net of issuance costs			19,558				19,546				19,534				19,522				-
Interest payable			536				299				576				417				489
Other liabilities			9,483				21,906				17,082				16,611				18,585
Total liabilities			1,202,493				1,185,926				1,185,433				1,168,490				1,181,901
Shareholders’ Equity
Common stock			61,319				54,463				54,463				54,463				54,463
Additional paid-in capital			14,872				14,944				14,875				14,906				14,755
Retained earnings			94,833				99,716				97,183				93,851				90,883
Accumulated other comprehensive income (loss)			(13,659	)			(1,845	)			(699	)			499				(457	)
Treasury stock			(24,728	)			(22,349	)			(21,530	)			(19,702	)			(15,678	)
Total shareholders’ equity			132,637				144,929				144,292				144,017				143,966
Total liabilities and shareholders’ equity		$	1,335,130			$	1,330,855			$	1,329,725			$	1,312,507			$	1,325,867

7

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

		At and for the Three Months Ended
		March				December				September				June				March
($ in thousands, except per share & ratios)		2022				2021				2021				2021				2021
Interest income
Loans
Taxable		$	8,052			$	8,889			$	9,948			$	9,196			$	9,926
Tax exempt			61				59				52				47				48
Securities
Taxable			1,235				969				939				835				643
Tax exempt			47				86				94				85				88
Total interest income			9,395				10,003				11,033				10,163				10,705
Interest expense
Deposits			618				640				709				818				962
Repurchase agreements & other			13				7				12				12				11
Federal Home Loan Bank advances			39				41				40				51				56
Trust preferred securities			53				49				49				50				51
Subordinated debt			195				188				199				75				-
Total interest expense			918				925				1,009				1,006				1,080
Net interest income			8,477				9,078				10,024				9,157				9,625
Provision for loan losses			-				-				300				-				750
Net interest income after provision for loan losses			8,477				9,078				9,724				9,157				8,875
Noninterest income
Wealth management fees			955				988				959				955				912
Customer service fees			794				827				812				820				758
Gain on sale of mtg. loans & OMSR			1,676				3,194				3,947				4,255				5,859
Mortgage loan servicing fees, net			1,204				624				155				(217	)			2,378
Gain on sale of non-mortgage loans			169				44				52				45				17
Title insurance revenue			602				528				508				532				521
Gain (loss) on sale of assets			55				1				1				2				(2	)
Other			347				383				215				145				479
Total noninterest income			5,802				6,589				6,649				6,537				10,922
Noninterest expense
Salaries and employee benefits			6,189				6,648				6,689				6,881				6,620
Net occupancy expense			742				846				714				748				740
Equipment expense			854				899				872				778				732
Data processing fees			576				721				671				653				534
Professional fees			950				872				817				574				764
Marketing expense			231				228				201				220				135
Telephone and communication expense			111				148				140				139				154
Postage and delivery expense			116				106				100				97				111
State, local and other taxes			278				288				286				278				323
Employee expense			136				163				186				161				153
Other expenses			676				648				580				547				643
Total noninterest expense			10,859				11,567				11,256				11,076				10,909
Income before income tax expense			3,420				4,100				5,117				4,618				8,888
Income tax expense			607				768				1,014				857				1,807
Net income		$	2,813			$	3,332			$	4,103			$	3,761			$	7,081
Common share data:
Basic earnings per common share		$	0.40			$	0.49			$	0.59			$	0.53			$	0.97
Diluted earnings per common share		$	0.40			$	0.49			$	0.58			$	0.52			$	0.97
Average shares outstanding (in thousands):
Basic:			7,035				6,906				6,966				7,148				7,317
Diluted:			7,100				6,970				7,017				7,200				7,335

8

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share & ratios)		At and for the Three Months Ended
		March				December				September				June				March
		2022				2021				2021				2021				2021
SUMMARY OF OPERATIONS
Net interest income		$	8,477			$	9,078			$	10,024			$	9,157			$	9,625
Tax-equivalent adjustment			29				39				39				35				36
Tax-equivalent net interest income			8,506				9,117				10,063				9,192				9,661
Provision for loan loss			-				-				300				-				750
Noninterest income			5,802				6,589				6,649				6,537				10,922
Total operating revenue			14,279				15,667				16,673				15,694				20,547
Noninterest expense			10,859				11,567				11,256				11,076				10,909
Pre-tax pre-provision income			3,420				4,100				5,417				4,618				9,638
Pretax income			3,420				4,100				5,117				4,618				8,888
Net income			2,813				3,332				4,103				3,761				7,081
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.40				0.49				0.59				0.53				0.97
Diluted earnings per share			0.40				0.49				0.58				0.52				0.97
Common dividends			0.115				0.115				0.110				0.110				0.105
Book value per common share			18.65				21.05				20.83				20.50				19.88
Tangible book value per common share (TBV)			15.31				17.60				17.55				17.27				16.74
Market price per common share			19.91				19.67				18.18				18.50				18.26
Market price to TBV			130.1	%			111.8	%			103.6	%			107.2	%			109.1	%
Market price to trailing 12 month EPS			10.0				7.7				6.7				6.5				6.4
PERFORMANCE RATIOS:
Return on average assets (ROAA)			0.83	%			0.99	%			1.23	%			1.13	%			2.21	%
Pre-tax pre-provision ROAA			1.01	%			1.22	%			1.63	%			1.39	%			3.01	%
Return on average equity			8.08	%			9.21	%			11.35	%			10.42	%			19.78	%
Return on average tangible equity			9.75	%			10.92	%			13.47	%			12.37	%			23.52	%
Efficiency ratio			75.93	%			73.72	%			67.40	%			70.46	%			53.01	%
Earning asset yield			2.96	%			3.17	%			3.25	%			3.56	%			3.66	%
Cost of interest bearing liabilities			0.39	%			0.40	%			0.44	%			0.44	%			0.50	%
Net interest margin			2.67	%			2.87	%			3.20	%			2.93	%			3.20	%
Tax equivalent effect			0.01	%			0.02	%			0.01	%			0.01	%			0.01	%
Net interest margin, tax equivalent			2.68	%			2.89	%			3.21	%			2.94	%			3.21	%
Non interest income/Average assets			1.72	%			1.96	%			1.99	%			1.97	%			3.41	%
Non interest expense/Average assets			3.22	%			3.45	%			3.38	%			3.33	%			3.40	%
Net noninterest expense/Average assets			-1.50	%			-1.48	%			-1.38	%			-1.37	%			0.00	%
ASSET QUALITY RATIOS:
Gross charge-offs			9				34				24				26				52
Recoveries			8				27				230				6				54
Net charge-offs			1				7				(206	)			20				(2	)
Nonaccruing loans/Total loans			0.50	%			0.44	%			0.38	%			0.43	%			0.66	%
Nonperforming loans/Total loans			0.59	%			0.53	%			0.47	%			0.51	%			0.76	%
Nonperforming assets/Loans & OREO			0.66	%			0.79	%			0.66	%			0.70	%			0.76	%
Nonperforming assets/Total assets			0.42	%			0.49	%			0.42	%			0.46	%			0.49	%
Allowance for loan loss/Nonperforming loans			273.08	%			315.40	%			345.91	%			304.28	%			207.28	%
Allowance for loan loss/Total loans			1.62	%			1.68	%			1.63	%			1.56	%			1.57	%
Net loan charge-offs/Average loans (ann.)			0.00	%			0.00	%			(0.10	)%			0.01	%			(0.00	)%
Loan loss provision/Net charge-offs			N/M				0.00	%			(145.63	)%			0.00	%			(37500.00	)%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			74.75	%			73.92	%			76.15	%			77.95	%			75.72	%
Equity/ Assets			9.93	%			10.89	%			10.85	%			10.97	%			10.86	%
Tangible equity/Tangible assets			8.30	%			9.27	%			9.30	%			9.41	%			9.30	%
Common equity tier 1 ratio (Bank)			13.71	%			13.94	%			13.23	%			13.11	%			13.08	%
END OF PERIOD BALANCES
Total assets			1,335,130				1,330,855				1,329,725				1,312,507				1,325,867
Total loans			850,671				822,714				846,548				850,513				848,176
Deposits			1,138,071				1,113,045				1,111,660				1,091,034				1,120,196
Stockholders equity			132,637				144,929				144,292				144,017				143,966
Goodwill and intangibles			23,804				23,774				22,692				22,710				22,728
Tangible equity			108,833				121,155				121,600				121,307				121,238
Mortgage servicing portfolio			1,375,554				1,362,962				1,341,439				1,323,804				1,304,097
Wealth/Brokerage assets under care			560,698				618,279				588,319				600,904				576,503
Total assets under care			3,271,382				3,312,096				3,259,483				3,237,215				3,206,467
Full-time equivalent employees			256				269				264				256				246
Period end common shares outstanding			7,111				6,884				6,927				7,026				7,242
Market capitalization (all)			141,575				135,415				125,935				129,984				132,239
AVERAGE BALANCES
Total assets			1,350,982				1,342,202				1,333,369				1,329,348				1,281,635
Total earning assets			1,270,218				1,263,431				1,253,722				1,251,213				1,203,284
Total loans			832,825				845,078				856,486				853,794				862,898
Deposits			1,134,234				1,123,843				1,109,491				1,115,186				1,073,641
Stockholders equity			139,214				144,749				144,565				144,315				143,167
Goodwill and intangibles			23,801				22,701				22,701				22,718				22,736
Tangible equity			115,413				122,048				121,864				121,597				120,431
Average basic shares outstanding			7,035				6,906				6,966				7,148				7,317
Average diluted shares outstanding			7,100				6,970				7,017				7,200				7,335

9

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three Months Ended March 31, 2022 and 2021
($ in thousands)		Three Months Ended Mar. 31, 2022												Three Months Ended Mar. 31, 2021
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Taxable securities/cash		$	429,839			$	1,235				1.15	%		$	332,824			$	643				0.77	%
Nontaxable securities			7,554				47				2.49	%			7,562				88				4.65	%
Loans, net			832,825				8,113				3.90	%			862,898				9,974				4.62	%
Total earning assets			1,270,218				9,395				2.96	%			1,203,284				10,705				3.56	%
Cash and due from banks			8,156												7,775
Allowance for loan losses			(13,807	)											(12,843	)
Premises and equipment			25,317												23,503
Other assets			61,098												59,916
Total assets		$	1,350,982											$	1,281,635
Liabilities
Savings, MMDA and interest bearing demand		$	733,095			$	398				0.22	%		$	614,802			$	508				0.33	%
Time deposits			155,006				220				0.57	%			206,903				454				0.88	%
Repurchase agreements & other			25,115				13				0.21	%			24,134				11				0.18	%
Advances from Federal Home Loan Bank			5,500				39				2.84	%			8,000				56				2.80	%
Trust preferred securities			10,310				53				2.06	%			10,310				51				1.98	%
Subordinated debt			19,552				195				3.99	%			-				-				0.00	%
Total interest bearing liabilities			948,578				918				0.39	%			864,149				1,080				0.50	%
Non interest bearing demand			246,133				-								251,936				-
Total funding			1,194,711								0.31	%			1,116,085								0.39	%
Other liabilities			17,057												22,383
Total liabilities			1,211,768												1,138,468
Equity			139,214												143,167
Total liabilities and equity		$	1,350,982											$	1,281,635
Net interest income						$	8,477											$	9,625
Net interest income as a percent of average interest-earning assets - GAAP measure											2.67	%											3.20	%
Net interest income as a percent of average interest-earning assets - non GAAP											2.68	%											3.21	%
- Computed on a fully tax equivalent (FTE) basis

10

Non-GAAP reconciliation		Three Months Ended
($ in thousands, except per share & ratios)		Mar. 31, 2022				Mar. 31, 2021
Total Operating Revenue		$	14,279			$	20,547
Adjustment to (deduct)/add OMSR recapture/impairment*			(889	)			(2,706	)
Adjusted Total Operating Revenue			13,390				17,841
Income before Income Taxes			3,420				8,888
Adjustment for OMSR			(889	)			(2,706	)
Adjusted Income before Income Taxes			2,531				6,182
Provision for Income Taxes			607				1,807
Adjustment for OMSR **			(187	)			(568	)
Adjusted Provision for Income Taxes			420				1,239
Net Income			2,813				7,081
Adjustment for OMSR & merger expenses			(703	)			(2,138	)
Adjusted Net Income			2,110				4,943
Diluted Earnings per Share			0.40				0.97
Adjustment for OMSR & merger expenses			(0.10	)			(0.29	)
Adjusted Diluted Earnings per Share		$	0.30			$	0.68
Return on Average Assets			0.83	%			2.21	%
Adjustment for OMSR & merger expenses			-0.21	%			-0.67	%
Adjusted Return on Average Assets			0.62	%			1.54	%

* valuation adjustment to the Company’s mortgage servicing rights

** tax effect is calculated using a 21% statutory federal corporate income tax rate

11