EX-99.1 2 ea026397301ex99-1_sbfin.htm NEWS RELEASE ISSUED BY SB FINANCIAL GROUP, INC. ON OCTOBER 30, 2025, REPORTING FINANCIAL RESULTS FOR THE THIRD QUARTER 2025

Exhibit 99.1

SB Financial Group Announces Third Quarter 2025 Results

DEFIANCE, OH, October 30, 2025 -- 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 third quarter ended September 30, 2025.

Third Quarter 2025 Highlights compared to the third quarter of the prior year include:

●

GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.0 million, or $0.64 per DEPS, well above the $2.4 million, or $0.35 per DEPS in the prior year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”), was $4.3 million, up 57.4 percent compared to $2.7 million for the prior-year period. Adjusted DEPS of $0.68 was also up 65.3 percent, from the prior year.

●

Net interest income of $12.3 million increased by 21.1 percent from $10.2 million reported in the prior-year quarter.

●

Loan growth of $80.6 million, or 7.8 percent from the prior-year quarter, with growth from the linked quarter of $15.8 million, or 1.4 percent. This marks six consecutive quarters of sequential loan growth. Loan growth adjusted for the Marblehead acquisition was $62.7 and $15.9 million, from the prior year and linked quarters, respectively.

●

Deposit growth of $103 million, or 8.9 percent from the prior-year quarter, with an increase from the linked quarter of $12.7 million, or 1.0 percent. Adjusted for the Marblehead acquisition, total deposits increased $52.1 million from the prior year.

●

Tangible book value (“TBV”) per share ended the quarter at $17.21 up $0.72 per share or 4.4 percent from the prior year quarter.

Nine months ended September 30, 2025 Highlights compared to the same period of the prior year:

●

Mortgage Banking Revenue increased to $5.1 million, up by 7.8 percent from $4.7 million.

●

Net interest income rose to $35.7 million, representing a year-over-year improvement of 23.1 percent from $29.0 million for the nine months ending September 30, 2024.

●

Total interest expense came in at $18.9 million, up slightly by 2.3 percent from $18.5 million in the prior year period.

Earnings Highlights

	Three Months Ended									Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2025			Sep. 2024			% Change			Sep. 2025			Sep. 2024			% Change
Operating revenue	$	16,578		$	14,309			15.9	%	$	49,140		$	41,485			18.5	%
Interest income		18,809			16,548			13.7	%		54,648			47,502			15.0	%
Interest expense		6,475			6,362			1.8	%		18,907			18,477			2.3	%
Net interest income		12,334			10,186			21.1	%		35,741			29,025			23.1	%
Provision for credit losses		124			200			-38.0	%		1,108			200			454.0	%
Noninterest income		4,244			4,123			2.9	%		13,399			12,460			7.5	%
Noninterest expense		11,498			11,003			4.5	%		35,760			31,956			11.9	%
Net income		4,046			2,354			71.9	%		10,056			7,835			28.3	%
Adjusted Earnings per diluted share		0.68			0.41			65.9	%		1.67			1.20			39.2	%
Earnings per diluted share		0.64			0.35			82.9	%		1.56			1.17			33.3	%
Adjusted Return on Avg. Assets		1.13	%		0.79	%		43.0	%		0.96	%		0.79	%		21.5	%
Return on average assets		1.07	%		0.68	%		57.4	%		0.90	%		0.77	%		16.9	%
Adjusted Return on Avg. Equity		12.79	%		8.42	%		51.9	%		10.84	%		8.62	%		25.8	%
Return on average equity		12.08	%		7.28	%		65.9	%		10.15	%		8.41	%		20.7	%

“Net income for the third quarter was $4.0 million, a 71.9 percent increase from the prior-year quarter, with the GAAP DEPS of $0.64 up 82.9 percent from the prior year,” said Mark A. Klein, Chairman, President, and CEO. This marks our 59^th consecutive quarter of profitability, which also included the second full quarter of contribution from the Marblehead acquisition, which strengthened our liquidity profile and further extended our market presence in Northern Ohio.

Net interest income for the quarter grew by $2.1 million to $12.3 million compared to the previous year, driven by sustained loan growth and stabilization of funding costs. Total loans increased by $80.6 million, compared to the prior year, and by $15.8 million from the linked quarter. On an organic basis, excluding the Marblehead acquisition, loan balances increased $62.7 million from the prior year. Deposits rose $103.0 million, or 8.9 percent, to $1.26 billion, reflecting both acquired balances and solid client retention. Excluding acquired deposits, organic growth totaled $52.1 million, underscoring the strength of our client relationships and the resiliency of our franchise.”

RESULTS OF OPERATIONS

In the third quarter of 2025, total operating revenue increased to $16.6 million, a 15.9 percent rise from $14.3 million in the prior year and a 3.5 percent decrease from the linked quarter. The year-over-year increase reflected higher net interest income and continued growth in non-interest income. Net interest income reached $12.3 million, a strong 21 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.9 million to $16.6 million along with a marginal increase in interest expense of $113,000 to $6.5 million. Deposit costs increased by 2.7 percent to $5.7 million but were partially offset by decreases in interest expenses on other funding sources, resulting in a 1.8 percent increase in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 32 basis points year-over-year to 3.48 percent, reflecting disciplined balance sheet management and moderation in funding cost pressures. Noninterest income for the quarter increased by 2.9 percent year-over-year to $4.2 million due primarily to improvements in wealth management fees, mortgage loan servicing fees, title insurance, other non-interest income fees as well as modest increases in customer service fees and gain on sale of mortgage loans. These fees were partially offset by decreases in gain on sales of non-mortgage loans and loss on sale of assets. “We remain focused on executing a balanced growth strategy, maintaining diversified sources of revenue, and exercising disciplined expense management,” said Mr. Klein.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.5 million, up $136,000 from the prior-year quarter. Loan servicing fees added $914,000 to revenue, reflecting an increase of $40,000 from the prior-year quarter. The OMSR net valuation adjustment for the third quarter of 2025 was a negative $301,000 compared to a negative $465,000 in the third quarter of 2024.

Mortgage Banking

																Prior Year
($ in thousands)	Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Growth
Mortgage originations	$	67,609		$	97,901		$	39,775		$	72,534		$	70,715		$	(3,106	)
Mortgage sales		66,408			74,313			39,279			62,301			61,271			5,137
Mortgage servicing portfolio		1,470,360			1,456,374			1,432,184			1,427,318			1,406,273			64,087
Mortgage servicing rights		15,347			15,458			14,965			14,868			14,357			990

Revenue
Loan servicing fees		914			904			894			886			874			40
OMSR amortization		(455	)		(469	)		(294	)		(358	)		(370	)		(85	)
Net administrative fees		459			435			600			528			504			(45	)
OMSR valuation adjustment		(301	)		159			11			288			(465	)		164
Net loan servicing fees		158			594			611			816			39			119
Gain on sale of mortgages		1,328			1,565			849			1,196			1,311			17
Mortgage banking revenue, net	$	1,486		$	2,159		$	1,460		$	2,012		$	1,350		$	136

Noninterest Income and Noninterest Expense

“Noninterest income for the third quarter of 2025 totaled $4.2 million, up $121,000 or 2.9 percent from the prior-year quarter, primarily due to increased mortgage loan servicing fees and other noninterest income fees, underscoring the continued strength of our fee-based businesses. Compared to the prior-year quarter, mortgage loan services fees, improved by $119,000 year over year, and other noninterest income fees added $91,000, reflecting the benefits of our diversified revenue base,” Mr. Klein noted.

Noninterest Income/Noninterest Expense

																Prior Year
($ in thousands, except ratios)	Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Growth
Noninterest Income (NII)	$	4,244		$	5,048		$	4,107		$	4,557		$	4,123		$	121
NII / Total Revenue		25.6	%		29.4	%		26.7	%		29.5	%		28.8	%		-3.2	%
NII / Average Assets		1.1	%		1.4	%		1.1	%		1.3	%		1.2	%		-0.1	%
Total Revenue Growth		15.9	%		22.3	%		17.2	%		2.2	%		4.5	%		11.4	%
Noninterest Expense (NIE)	$	11,498		$	11,852		$	12,410		$	11,003		$	11,003		$	495
Efficiency Ratio		69.0	%		68.9	%		80.0	%		71.1	%		76.8	%		-7.8	%
NIE / Average Assets		3.0	%		3.2	%		3.4	%		3.2	%		3.2	%		-0.2	%
Net Noninterest Expense/Avg. Assets		-1.9	%		-1.8	%		-2.3	%		-1.8	%		-2.0	%		0.1	%
Total Expense Growth		4.5	%		11.1	%		20.7	%		6.1	%		5.0	%		-0.5	%

Noninterest expense for the third quarter of 2025 was $11.5 million, up 4.5 percent from the prior year, driven primarily by increased salary and benefit expenses, equipment expenses and professional fees.

“Our efficiency ratio in the third quarter of 2025 was 69.0 percent highlighting our commitment to disciplined expense management and balanced revenue growth,” stated Mr. Klein.

Balance Sheet

As of September 30, 2025, SB Financial reported total assets of $1.50 billion, higher than the linked quarter and the previous year. Year-over-year growth was primarily driven by a robust increase in the loan portfolio, which reached $1.11 billion, marking an $80.6 million or 7.8 percent increase year over year. Loan growth also included $18.0 million in loans added with the completion of the Marblehead acquisition. Cash increased by $35.7 million from the prior year, driven by investment portfolio runoff and deposit growth. Key metrics this quarter included our loan-to-deposit ratio of 88 percent and our loan to asset ratio of 74 percent, both of which were in the upper range of our target levels.

Total deposits increased to $1.26 billion, growing $103.0 million or 8.9 percent year over year, including $50.9 million in low-cost deposits from the acquisition and $52.1 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement within dynamic markets. Shareholders’ equity ended the quarter at $137.0 million, representing a $4.1 million increase from the prior year. The increase highlights management’s consistent efforts to deliver sustainable growth and enhance shareholder returns.

During the third quarter, SB Financial repurchased approximately 101,000 shares, a slight decrease from the prior quarter, reflecting management’s disciplined and opportunistic approach to capital deployment when the share price trades below the target range. This activity demonstrates the Company’s balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases while maintaining sufficient capital to fund future growth.

“As we progress through the fourth quarter of 2025, the Company’s solid balance sheet and prudent capital management provide a strong foundation to navigate the current environment and support future growth,” said Mr. Klein. “We were pleased to achieve our sixth consecutive quarter of sequential loan growth, supported by sound credit quality and consistent execution across our markets, with total loan balances rising $80.6 million from the prior year, including $62.7 million of organic loan growth. This continued trajectory reflects the depth of our client relationships, the resiliency of our business model, and the disciplined manner in which we deploy capital across our markets. Our strong asset quality metrics and top-tier reserve coverage remain central to our financial strength and position us well to navigate the current operating environment. As we look ahead, we remain focused on driving organic growth, maintaining disciplined expense management, and delivering long-term value for our shareholders.”

Loan Balances

																Annual
($ in thousands, except ratios)	Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Growth
Commercial	$	117,581		$	118,984		$	125,878		$	124,764		$	123,821		$	(6,240	)
% of Total		10.6	%		10.9	%		11.6	%		11.9	%		12.0	%		-5.0	%
Commercial RE		535,307			525,671			509,518			479,573			459,449			75,858
% of Total		48.2	%		48.0	%		46.8	%		45.8	%		44.6	%		16.5	%
Agriculture		65,150			60,924			61,443			64,680			64,887			263
% of Total		5.9	%		5.6	%		5.6	%		6.2	%		6.3	%		0.4	%
Residential RE		309,140			310,126			319,307			308,378			314,010			(4,870	)
% of Total		27.8	%		28.3	%		29.3	%		29.5	%		30.5	%		-1.6	%
Consumer & Other		83,367			79,014			72,128			69,340			67,788			15,579
% of Total		7.5	%		7.2	%		6.6	%		6.6	%		6.6	%		23.0	%
Total Loans	$	1,110,545		$	1,094,719		$	1,088,274		$	1,046,735		$	1,029,955		$	80,590
Total Growth Percentage																	7.8	%

Deposit Balances

																Annual
($ in thousands, except ratios)	Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Growth
Non-Int DDA	$	246,725		$	241,245		$	240,446		$	232,155		$	222,425		$	24,300
% of Total		19.5	%		19.3	%		18.9	%		20.1	%		19.2	%		10.9	%
Interest DDA		194,420			205,581			208,583			201,085			202,097			(7,677	)
% of Total		15.4	%		16.4	%		16.4	%		17.4	%		17.4	%		-3.8	%
Savings		290,111			282,311			285,902			237,987			241,761			48,350
% of Total		23.0	%		22.6	%		22.5	%		20.6	%		20.8	%		20.0	%
Money Market		261,953			249,536			257,013			222,161			228,182			33,771
% of Total		20.7	%		20.0	%		20.2	%		19.3	%		19.7	%		14.8	%
Time Deposits		269,313			271,149			279,276			259,217			265,068			4,245
% of Total		21.3	%		21.7	%		22.0	%		22.5	%		22.9	%		1.6	%
Total Deposits	$	1,262,522		$	1,249,822		$	1,271,220		$	1,152,605		$	1,159,533		$	102,989
Total Growth Percentage																	8.9	%

Asset Quality

As of September 30, 2025, SB Financial continued to focus on strong asset quality metrics. Nonperforming assets totaled $4.9 million, representing 0.32 percent of total assets, a decrease of $665,000 compared to $5.5 million or 0.40 percent of total assets reported in the prior year, and a continued improvement from linked quarter balance of $6.2 million, representing 0.41 percent of total assets.

The allowance for credit losses remained strong at 1.44 percent of total loans, providing 345.4 percent coverage of non-performing loans, a level consistent with the linked quarter and reflective of our conservative approach to risk management. The net loan charge-offs to average loans ratio remained modest at 0 basis points, declining from 2 basis points in the linked quarter and 1 basis point recorded in the prior year. These metrics reflect our continued focus on disciplined credit practices and effective collateral management.

“Our asset quality metrics continue to reflect the strength of our portfolio and disciplined approach to risk management”, stated Mr. Klein. “We were especially pleased with the improvement in non-performing loans, which were the result of our determined efforts to resolve several longer-term problem credits. We remain focused on maintaining conservative credit practices while supporting prudent growth and delivering long-term value for our shareholders.”

Nonperforming Assets

																Annual
($ in thousands, except ratios)	Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Change
Commercial & Agriculture	$	2,243		$	3,274		$	3,418		$	2,927		$	2,899		$	(656	)
% of Total Com./Ag. loans		1.23	%		1.82	%		1.82	%		1.55	%		1.54	%		-22.6	%
Commercial RE		778			816			798			807			813			(35	)
% of Total CRE loans		0.15	%		0.16	%		0.16	%		0.17	%		0.18	%		-4.3	%
Residential RE		1,400			1,577			1,608			1,539			1,536			(136	)
% of Total Res. RE loans		0.45	%		0.51	%		0.50	%		0.50	%		0.49	%		-8.9	%
Consumer & Other		195			205			227			243			270			(75	)
% of Total Con./Oth. loans		0.23	%		0.26	%		0.31	%		0.35	%		0.40	%		-27.8	%
Total Nonaccruing Loans		4,616			5,872			6,051			5,516			5,518			(902	)
% of Total loans		0.42	%		0.54	%		0.56	%		0.53	%		0.54	%		-16.3	%
Foreclosed Assets and Other Assets		237			284			73			-			-			237
Total Change (%)																	N/M
Total Nonperforming Assets	$	4,853		$	6,156		$	6,124		$	5,516		$	5,518		$	(665	)
% of Total assets		0.32	%		0.41	%		0.41	%		0.40	%		0.40	%		-12.05	%

Webcast and Conference Call

The Company will hold the third quarter 2025 earnings conference call and webcast on October 31, 2025, 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 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has four loan production offices located throughout the Tri-State region of Ohio and Indiana. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

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, 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 OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP 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

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

	September			June			March			December			September
($ in thousands)	2025			2025			2025			2024			2024

ASSETS
Cash and due from banks	$	85,025		$	79,463		$	105,145		$	25,928		$	49,348
Interest bearing time deposits		2,025			1,565			1,565			1,565			1,706
Available-for-sale securities		193,190			195,955			199,721			201,587			211,511
Loans held for sale		4,736			12,774			4,286			6,770			8,927
Loans, net of unearned income		1,110,545			1,094,719			1,088,274			1,046,735			1,029,955
Allowance for credit losses		(15,943	)		(15,645	)		(15,391	)		(15,096	)		(15,278	)
Premises and equipment, net		21,764			21,857			21,875			20,456			20,715
Federal Reserve and FHLB Stock, at cost		5,466			5,466			5,340			5,223			5,223
Foreclosed assets		237			284			73			-			-
Interest receivable		5,455			5,299			5,072			4,908			4,842
Goodwill		27,158			27,158			27,158			23,239			23,239
Cash value of life insurance		32,004			31,060			30,871			30,685			30,488
Mortgage servicing rights		15,347			15,458			14,965			14,868			14,357
Other assets		9,254			10,888			12,048			12,649			8,916

Total assets	$	1,496,263		$	1,486,301		$	1,501,002		$	1,379,517		$	1,393,949

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand	$	246,725		$	241,245		$	240,446		$	232,155		$	222,425
Interest bearing demand		194,420			205,581			208,583			201,085			202,097
Savings		290,111			282,311			285,902			237,987			241,761
Money market		261,953			249,536			257,013			222,161			228,182
Time deposits		269,313			271,149			279,276			259,217			265,068

Total deposits		1,262,522			1,249,822			1,271,220			1,152,605			1,159,533

Short-term borrowings		10,976			15,640			11,058			10,585			15,240
Federal Home Loan Bank advances		35,000			35,000			35,000			35,000			35,000
Trust preferred securities		10,310			10,310			10,310			10,310			10,310
Subordinated debt net of issuance costs		19,726			19,715			19,702			19,690			19,678
Interest payable		2,739			2,258			2,634			2,351			3,374
Other liabilities		18,051			19,908			19,552			21,468			17,973

Total liabilities		1,359,324			1,352,653			1,369,476			1,252,009			1,261,108

Shareholders’ Equity
Common stock		61,319			61,319			61,319			61,319			61,319
Additional paid-in capital		15,086			15,139			14,955			15,194			15,090
Retained earnings		123,370			120,273			117,397			116,186			113,515
Accumulated other comprehensive loss		(23,412	)		(25,492	)		(26,872	)		(30,234	)		(24,870	)
Treasury stock		(39,424	)		(37,591	)		(35,273	)		(34,957	)		(32,213	)

Total shareholders’ equity		136,939			133,648			131,526			127,508			132,841

Total liabilities and shareholders’ equity	$	1,496,263		$	1,486,301		$	1,501,002		$	1,379,517		$	1,393,949

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

	At and for the Three Months Ended											Nine Months Ended
	September		June		March		December			September		September		September
($ in thousands, except per share & ratios)	2025		2025		2025		2024			2024		2025		2024
Interest income
Loans
Taxable	$	16,449	$	16,059	$	15,244	$	14,920		$	14,513	$	47,752	$	41,943
Tax exempt		117		116		115		122			127		348		374
Securities
Taxable		1,097		1,133		1,169		1,178	#		1,192		3,399		3,692
Tax exempt		35		35		38		35			37		108		111
Other interest income		1,111		1,124		806		592			679		3,041		1,382

Total interest income		18,809		18,467		17,372		16,847			16,548		54,648		47,502

Interest expense
Deposits		5,721		5,597		5,352		5,169			5,568		16,670		15,866
Repurchase agreements & other		28		21		24		41			43		73		113
Federal Home Loan Bank advances		369		366		362		369			369		1,097		1,352
Trust preferred securities		162		161		160		177			187		483		562
Subordinated debt		195		194		195		194			195		584		584

Total interest expense		6,475		6,339		6,093		5,950			6,362		18,907		18,477

Net interest income		12,334		12,128		11,279		10,897			10,186		35,741		29,025

Provision for credit losses		124		597		387		(76	)		200		1,108		200

Net interest income after provision for loan losses		12,210		11,531		10,892		10,973			9,986		34,633		28,825

Noninterest income
Wealth management fees		912		859		864		916			882		2,635		2,595
Customer service fees		887		886		879		842			870		2,652		2,625
Gain on sale of mtg. loans & OMSR		1,328		1,566		849		1,196			1,311		3,743		3,369
Mortgage loan servicing fees, net		158		594		611		816			39		1,363		1,367
Gain on sale of non-mortgage loans		8		82		15		10			20		105		135
Title insurance revenue		544		582		397		478			485		1,523		1,157
Net gain on sales of securities		-		-		-		-			-		-		-
Gain (loss) on sale of assets		-		-		-		-			200		-		200
Other		407		479		492		299			316		1,378		1,012

Total noninterest income		4,244		5,048		4,107		4,557			4,123		13,399		12,460

Noninterest expense
Salaries and employee benefits		6,198		6,595		6,237		6,185			6,057		19,030		17,418
Net occupancy expense		801		793		893		702			706		2,487		2,182
Equipment expense		1,188		1,121		1,072		1,127			1,069		3,381		3,206
Data processing fees		723		888		1,439		821			758		3,050		2,254
Professional fees		863		892		1,034		895			659		2,789		2,032
Marketing expense		174		190		165		207			241		529		614
Telephone and communication expense		123		125		139		136			128		387		389
Postage and delivery expense		157		107		137		116			145		401		331
State, local and other taxes		268		268		224		224			208		760		683
Employee expense		255		176		174		168			228		605		565
Other expenses		748		697		896		422			804		2,341		2,282

Total noninterest expense		11,498		11,852		12,410		11,003			11,003		35,760		31,956

Income before income tax expense		4,956		4,727		2,589		4,527			3,106		12,272		9,329

Income tax expense		910		875		431		892			752		2,216		1,494

Net income	$	4,046	$	3,852	$	2,158	$	3,635		$	2,354	$	10,056	$	7,835

Common share data:
Basic earnings per common share	$	0.64	$	0.60	$	0.33	$	0.55		$	0.35	$	1.57	$	1.17

Diluted earnings per common share	$	0.64	$	0.60	$	0.33	$	0.55		$	0.35	$	1.56	$	1.17

Average shares outstanding (in thousands):
Basic:		6,297		6,448		6,481		6,575			6,660		6,408		6,689
Diluted:		6,311		6,459		6,502		6,599			6,675		6,427		6,704

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

	At and for the Three Months Ended															Nine Months Ended
	September			June			March			December			September			September			September
($ in thousands, except per share & ratios)	2025			2025			2025			2024			2024			2025			2024
SUMMARY OF OPERATIONS
Net interest income	$	12,334		$	12,128		$	11,279		$	10,897		$	10,186		$	35,741		$	29,025
Tax-equivalent adjustment		40			40			41			42			44			121			129
Tax-equivalent net interest income		12,374			12,168			11,320			10,939			10,230			35,862			29,154
Provision for credit loss		124			597			387			(76	)		200			1,108			200
Noninterest income		4,244			5,048			4,107			4,557			4,123			13,399			12,460
Total operating revenue		16,578			17,176			15,386			15,454			14,309			49,140			41,485
Noninterest expense		11,498			11,852			12,410			11,003			11,003			35,760			31,956
Pre-tax pre-provision income		5,080			5,324			2,976			4,451			3,306			13,380			9,529
Net income		4,046			3,852			2,158			3,635			2,354			10,056			7,835

PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.64			0.60			0.33			0.55			0.35			1.57			1.17
Diluted earnings per share		0.64			0.60			0.33			0.55			0.35			1.56			1.17
Common dividends		0.150			0.150			0.145			0.145			0.140			0.445			0.415
Book value per common share		21.85			21.02			20.29			19.64			20.05			21.85			20.05
Tangible book value per common share (TBV)		17.21			16.44			15.79			16.00			16.49			17.21			16.49
Market price per common share		19.29			19.10			20.82			20.91			20.56			19.29			20.56
Market price to TBV		112.1	%		116.2	%		131.8	%		130.7	%		124.7	%		112.1	%		124.7	%
Market price to trailing 12 month EPS		9.1			10.4			12.2			12.1			11.8			9.1			11.8

PERFORMANCE RATIOS:
Return on average assets (ROAA)		1.07	%		1.03	%		0.60	%		1.04	%		0.68	%		0.90	%		0.77	%
Pre-tax pre-provision ROAA		1.34	%		1.42	%		0.83	%		1.27	%		0.96	%		1.29	%		1.01	%
Return on average equity (ROE)		12.08	%		11.67	%		6.63	%		11.07	%		7.28	%		10.15	%		8.41	%
Return on average tangible equity		15.47	%		14.97	%		8.32	%		13.51	%		8.92	%		12.89	%		10.39	%
Efficiency ratio		69.00	%		68.90	%		80.00	%		71.09	%		76.78	%		72.41	%		76.91	%
Earning asset yield		5.31	%		5.29	%		5.23	%		5.18	%		5.16	%		5.27	%		5.05	%
Cost of interest bearing liabilities		2.33	%		2.33	%		2.32	%		2.36	%		2.53	%		2.33	%		2.52	%
Net interest margin		3.48	%		3.48	%		3.40	%		3.35	%		3.16	%		3.44	%		3.08	%
Tax equivalent effect		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%
Net interest margin, tax equivalent		3.50	%		3.49	%		3.41	%		3.36	%		3.17	%		3.46	%		3.10	%
Non interest income/Average assets		1.12	%		1.35	%		1.14	%		1.30	%		1.19	%		1.20	%		1.23	%
Non interest expense/Average assets		3.04	%		3.17	%		3.45	%		3.14	%		3.18	%		3.21	%		3.16	%
Net noninterest expense/Average assets		-1.92	%		-1.82	%		-2.31	%		-1.84	%		-1.99	%		-2.01	%		-1.93	%

ASSET QUALITY RATIOS:
Gross charge-offs		11			49			86			195			29			146			95
Recoveries		9			3			2			13			2			14			27
Net charge-offs		2			46			84			182			27			132			68
Nonperforming loans/Total loans		0.42	%		0.54	%		0.56	%		0.53	%		0.54	%		0.42	%		0.54	%
Nonperforming assets/Loans & OREO		0.44	%		0.56	%		0.56	%		0.53	%		0.54	%		0.44	%		0.54	%
Nonperforming assets/Total assets		0.32	%		0.41	%		0.41	%		0.40	%		0.40	%		0.32	%		0.40	%
Allowance for credit loss/Nonperforming loans		345.39	%		266.43	%		254.35	%		273.68	%		276.83	%		345.39	%		276.83	%
Allowance for credit loss/Total loans		1.44	%		1.43	%		1.41	%		1.44	%		1.48	%		1.44	%		1.48	%
Net loan charge-offs/Average loans (ann.)		0.00	%		0.02	%		0.03	%		0.07	%		0.01	%		0.02	%		0.01	%

CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		87.96	%		87.59	%		85.61	%		90.81	%		88.82	%		87.96	%		88.82	%
Equity/ Assets		9.15	%		8.99	%		8.76	%		9.24	%		9.53	%		9.15	%		9.53	%
Tangible equity/Tangible assets		7.35	%		7.17	%		6.96	%		7.66	%		7.97	%		7.35	%		7.97	%
Common equity tier 1 ratio (Bank)		12.33	%		12.53	%		12.35	%		13.43	%		13.19	%		12.33	%		13.19	%

END OF PERIOD BALANCES
Total assets		1,496,263			1,486,301			1,501,002			1,379,517			1,393,949			1,496,263			1,393,949
Total loans		1,110,545			1,094,719			1,088,274			1,046,735			1,029,955			1,110,545			1,029,955
Deposits		1,262,522			1,249,822			1,271,220			1,152,605			1,159,533			1,262,522			1,159,533
Shareholders equity		136,939			133,648			131,526			127,508			132,841			136,939			132,841
Goodwill and intangibles		29,048			29,107			29,125			23,597			23,613			29,048			23,613
Tangible equity		107,891			104,541			102,401			103,911			109,228			107,891			109,228
Mortgage servicing portfolio		1,470,360			1,456,374			1,432,184			1,427,318			1,406,273			1,470,360			1,406,273
Wealth/Brokerage assets under care		563,036			536,836			519,158			547,697			557,724			563,036			557,724
Total assets under care		3,529,659			3,479,511			3,452,344			3,354,532			3,357,946			3,529,659			3,357,946
Full-time equivalent employees		253			256			262			252			248			253			248
Period end common shares outstanding		6,268			6,359			6,483			6,494			6,624			6,268			6,624
Market capitalization (all)		120,907			121,453			134,982			135,780			136,189			120,907			136,189

AVERAGE BALANCES
Total assets		1,502,389			1,498,756			1,459,896			1,395,473			1,376,849			1,487,251			1,350,580
Total earning assets		1,404,330			1,399,485			1,346,354			1,301,872			1,283,407			1,387,258			1,255,335
Total loans		1,104,175			1,076,328			1,076,328			1,040,580			1,018,262			1,091,670			1,005,577
Deposits		1,270,783			1,270,798			1,227,449			1,163,531			1,145,964			1,256,732			1,119,276
Shareholders equity		132,866			132,353			131,944			130,647			128,608			132,426			124,218
Goodwill and intangibles		29,077			29,116			26,714			23,605			23,621			28,140			23,720
Tangible equity		103,789			103,237			105,230			107,042			104,987			104,286			100,498
Average basic shares outstanding		6,297			6,448			6,481			6,575			6,660			6,408			6,689
Average diluted shares outstanding		6,311			6,459			6,502			6,599			6,675			6,427			6,704

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three Months Ended Sep. 30, 2025 and 2024

	Three Months Ended Sep. 30, 2025								Three Months Ended Sep. 30, 2024
	Average					Average			Average					Average
($ in thousands)	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Taxable securities	$	193,893		$	1,097		2.24	%	$	208,081		$	1,192		2.28	%
Overnight Cash		100,164			1,111		4.40	%		51,578			679		5.24	%
Nontaxable securities		6,098			35		2.28	%		6,402			37		2.30	%
Loans, net		1,104,175			16,566		5.95	%		1,018,262			14,640		5.72	%

Total earning assets		1,404,330			18,809		5.31	%		1,284,323			16,548		5.13	%

Cash on hand		5,044								4,334
Allowance for loan losses		(15,750	)							(15,601	)
Premises and equipment		21,854								20,820
Other assets		86,911								82,973

Total assets	$	1,502,389							$	1,376,849

Liabilities
Savings, MMDA and interest bearing demand	$	753,639		$	3,442		1.81	%	$	659,879		$	2,969		1.79	%
Time deposits		267,984			2,279		3.37	%		264,188			2,599		3.91	%
Repurchase agreements & other		14,015			28		0.79	%		16,240			43		1.05	%
Advances from Federal Home Loan Bank		35,000			369		4.18	%		35,054			369		4.19	%
Trust preferred securities		10,310			162		6.23	%		10,310			187		7.22	%
Subordinated debt		19,719			195		3.92	%		19,670			195		3.94	%

Total interest bearing liabilities		1,100,667			6,475		2.33	%		1,005,341			6,362		2.52	%

Non interest bearing demand		249,160			-					221,897			-

Total funding		1,349,827					1.90	%		1,227,238					2.06	%

Other liabilities		19,696								21,003

Total liabilities		1,369,523								1,248,241

Equity		132,866								128,608

Total liabilities and equity	$	1,502,389							$	1,376,849

Net interest income				$	12,334							$	10,186

Net interest income as a percent of average interest-earning assets - GAAP measure							3.48	%							3.16	%

Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis							3.50	%							3.17	%

	Nine Months Ended Sep. 30, 2025								Nine Months Ended Sep. 30, 2024
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Taxable securities	$	198,463		$	3,399		2.29	%	$	210,992		$	3,692		2.34	%
Overnight Cash		90,829			3,041		4.48	%		33,855			1,382		5.45	%
Nontaxable securities		6,296			108		2.29	%		6,423			111		2.31	%
Loans, net		1,091,670			48,100		5.89	%		1,005,577			42,317		5.62	%

Total earning assets		1,387,258			54,648		5.27	%		1,256,847			47,502		5.05	%

Cash on hand		4,880								4,431
Allowance for loan losses		(15,492	)							(15,693	)
Premises and equipment		21,555								21,026
Other assets		89,050								83,969

Total assets	$	1,487,251							$	1,350,580

Liabilities
Savings, MMDA and interest bearing demand	$	734,938		$	9,624		1.75	%	$	634,122		$	8,270		1.74	%
Time deposits		273,508			7,046		3.44	%		260,061			7,596		3.90	%
Repurchase agreements & Other		12,549			73		0.78	%		14,708			113		1.03	%
Advances from Federal Home Loan Bank		35,015			1,097		4.19	%		40,466			1,352		4.46	%
Trust preferred securities		10,310			483		6.26	%		10,310			562		7.28	%
Subordinated debt		19,707			584		3.96	%		19,658			584		3.97	%

Total interest bearing liabilities		1,086,027			18,907		2.33	%		979,325			18,477		2.52	%

Non interest bearing demand		248,286					1.89	%		225,093					2.05	%

Total funding		1,334,313								1,204,418

Other liabilities		20,512								21,944

Total liabilities		1,354,825								1,226,362

Equity		132,426								124,218

Total liabilities and equity	$	1,487,251							$	1,350,580

Net interest income				$	35,741							$	29,025

Net interest income as a percent of average interest-earning assets - GAAP measure							3.44	%							3.08	%

Net interest income as a percent of average interest-earning assets - non GAAP							3.46	%							3.10	%

Non-GAAP reconciliation	Three Months Ended						Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 30, 2025			Sep. 30, 2024			Sep. 30, 2025			Sep. 30, 2024

Total Operating Revenue	$	16,578		$	14,309		$	49,140		$	41,485
Adjustment to (deduct)/add OMSR recapture/impairment *		301			465			131			246

Adjusted Total Operating Revenue		16,879			14,774			49,271			41,731

Total Operating Expense	$	11,498		$	10,481		$	35,760		$	31,956
Adjustment for merger expenses		-			-			(726	)		-

Adjusted Total Operating Expense		11,498			10,481			35,034			31,956

Income before Income Taxes		4,956			3,106			12,272			9,329
Adjustment for OMSR*/Merger Expenses		301			465			857			246

Adjusted Income before Income Taxes		5,257			3,571			13,129			9,575

Provision for Income Taxes		910			752			2,216			1,494
Adjustment for OMSR/Merger Expenses **		63			98			180			52

Adjusted Provision for Income Taxes		973			850			2,396			1,546

Net Income		4,046			2,354			10,056			7,835
Adjustment for OMSR*/Merger Expenses		238			367			677			194

Adjusted Net Income		4,284			2,721			10,733			8,029

Diluted Earnings per Share		0.64			0.35			1.56			1.17
Adjustment for OMSR*/Merger Expenses		0.04			0.06			0.11			0.03

Adjusted Diluted Earnings per Share	$	0.68		$	0.41		$	1.67		$	1.20

Return on Average Assets		1.07	%		0.68	%		0.90	%		0.77	%
Adjustment for OMSR*/Merger Expenses		0.06	%		0.11	%		0.06	%		0.01	%

Adjusted Return on Average Assets		1.13	%		0.79	%		0.96	%		0.79	%

valuation adjustment to the Company’s mortgage servicing rights

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