SB Financial Group Announces Fourth Quarter 2025 Results

DEFIANCE, Ohio, Jan. 29, 2026 (GLOBE NEWSWIRE) -- 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 full year ended December 31, 2025.

Fourth Quarter 2025 Highlights compared to the fourth quarter of the prior year include:

• GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.63 per DEPS, an improvement from the $3.6 million, or $0.55 per DEPS in the prior-year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”), was $4.0 million, up 18.6 percent compared to $3.4 million for the prior-year period. Adjusted DEPS of $0.65 was also up 25.0 percent, from the adjusted prior year.
• Net interest income of $12.7 million increased by 16.7 percent from $10.9 million reported in the prior-year quarter.
• Loan growth of $133.9 million, or 12.8 percent from the prior-year quarter, with growth from the linked quarter of $70.0 million, or 6.3 percent. This marks the seventh consecutive quarter of sequential loan growth. Loan growth adjusted for the Marblehead acquisition was $115.7 and $70.0 million, from the prior year and linked quarters, respectively.
• Deposit growth of $154.6 million, or 13.4 percent from the prior-year quarter, with an increase from the linked quarter of $44.7 million, or 3.5 percent. Adjusted for the Marblehead acquisition, total deposits increased $107.5 million from the prior year, or a 9.3 percent increase.
• Tangible book value (“TBV”) per share ended the quarter at $18.00 up $2.00 per share or 12.5 percent from the prior-year quarter. Adjusted TBV now rests at $21.44 per share.
  

Twelve months ended December 31, 2025 Highlights compared to the same period of the prior year:

• Net interest income rose to $48.5 million, representing a year-over-year improvement of 21.4 percent from $39.9 million for the twelve months ending December 31, 2024.
• Total interest expense increased to $25.5 million, up by 4.3 percent from $24.4 million in the prior year period.
• Net income increased to $14.0 million for the twelve months ending December 31, 2025, representing an improvement of 21.8% from $11.5 million in the prior year.
  

Earnings Highlights	Three Months Ended									Twelve Months Ended
($ in thousands, except per share & ratios)	Dec. 2025			Dec. 2024			% Change			Dec. 2025			Dec. 2024			% Change
Operating revenue	$	16,420		$	15,454		6.3	%		$	65,560		$	56,939		15.1	%
Interest income		19,272			16,847		14.4	%			73,920			64,349		14.9	%
Interest expense		6,560			5,950		10.3	%			25,467			24,427		4.3	%
Net interest income		12,712			10,897		16.7	%			48,453			39,922		21.4	%
Provision for credit losses		198			(76	)	360.5	%			1,306			124		953.2	%
Noninterest income		3,708			4,557		-18.6	%			17,107			17,017		0.5	%
Noninterest expense		11,239			11,003		2.1	%			46,999			42,959		9.4	%
Net income		3,918			3,635		7.8	%			13,974			11,470		21.8	%
Adjusted Earnings per diluted share		0.65			0.52		25.0	%			2.31			1.71		35.1	%
Earnings per diluted share		0.63			0.55		14.5	%			2.19			1.72		27.3	%
Adjusted Return on Avg. Assets		1.02	%		1.02	%	0.0	%			0.98	%		0.84	%	16.7	%
Return on average assets		1.01	%		1.04	%	-2.9	%			0.93	%		0.84	%	10.7	%
Adjusted Return on Avg. Equity		11.43	%		10.38	%	10.1	%			10.98	%		9.16	%	19.9	%
Return on average equity		11.08	%		11.07	%	0.1	%			10.38	%		9.19	%	12.9	%

“Net income for the fourth quarter was $3.9 million, a 7.8 percent increase from the prior-year quarter, with the GAAP DEPS of $0.63 up 14.5 percent from the prior year,” said Mark A. Klein, Chairman, President, and CEO. This marks 60 consecutive quarters of profitability, which also included the third full quarter of contribution from the Marblehead acquisition, which continues to strengthen our liquidity profile and further extended our market presence in Northern Ohio.

Net interest income for the quarter grew by $1.8 million to $12.7 million compared to the previous year, driven by strong loan growth, rising loan yields, and more stable funding costs. Total loans increased by $133.9 million, compared to the prior year, and by $70.0 million from the linked quarter. On an organic basis, excluding the Marblehead acquisition, loan balances increased $115.7 million from the prior year. Deposits increased $154.6 million, or 13.4 percent, to $1.31 billion, driven by stable core deposit relationships. Excluding acquired deposits, organic growth totaled $107.5 million, demonstrating the Bank’s ability to sustain long-standing client relationships while continuing to source additional deposit balances.”

RESULTS OF OPERATIONS

In the fourth quarter of 2025, total operating revenue increased to $16.4 million, a 6.3 percent increase from $15.5 million in the prior year and a 1.0 percent decrease from the linked quarter. The year-over-year increase was driven by higher net interest income and incremental expansion in core non-interest income. Net interest income totaled $12.7 million for the quarter, representing a 16.7 percent increase from the prior year, driven by higher interest income on loans, which increased $2.3 million to $17.3 million. Interest expense rose modestly, with higher deposit costs offset in part by lower costs across other funding sources, resulting in a 10.3 percent increase in total interest expense compared to the prior-year quarter. As a result, net interest margin increased 16 basis points year over year to 3.5 percent. Noninterest income declined 18.6 percent from the prior year period to $3.7 million, primarily driven by lower wealth management fees, mortgage loan servicing fees, and other fee-based income. These declines were partially offset by higher customer service fees, gains on the sale of mortgage and non-mortgage loans and increased title insurance revenue. “Our results this quarter reflect continued balance sheet discipline, with funding cost management supporting margin expansion, while noninterest income was impacted by lower activity in certain fee-based businesses,” said Mr. Klein. “We remain focused on maintaining a diversified revenue mix and executing on long-term growth priorities.”

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.5 million, down $541,000 from the prior-year quarter. Loan servicing fees added $928,000 to revenue, reflecting an increase of $42,000 from the prior-year quarter. The OMSR net valuation adjustment for the fourth quarter of 2025 was a negative $157,000 compared to a recapture of $288,000 in the fourth quarter of 2024.

Mortgage Banking
($ in thousands)	Dec. 2025			Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024				Prior Year Growth
Mortgage originations	$	72,398		$	67,609		$	97,901		$	39,775		$	72,534			$	(136	)
Mortgage sales		70,361			66,408			74,313			39,279			62,301				8,060
Mortgage servicing portfolio		1,479,982			1,470,360			1,456,374			1,432,184			1,427,318				52,664
Mortgage servicing rights		15,254			15,347			15,458			14,965			14,868				386
Revenue
Loan servicing fees		928			914			904			894			886				42
OMSR amortization		(572	)		(455	)		(469	)		(294	)		(358	)			(214	)
Net administrative fees		356			459			435			600			528				(172	)
OMSR valuation adjustment		(157	)		(301	)		159			11			288				(445	)
Net loan servicing fees		199			158			594			611			816				(617	)
Gain on sale of mortgages		1,272			1,328			1,566			849			1,196				76
Mortgage banking revenue, net	$	1,471		$	1,486		$	2,160		$	1,460		$	2,012			$	(541	)

Noninterest Income and Noninterest Expense

"Noninterest income for the fourth quarter of 2025 totaled $3.7 million, a decrease of $849,000 or 18.6 percent from the prior-year quarter, driven primarily by a decline in mortgage loan servicing fees and other fee-based income. Despite the year over year decline, noninterest revenue base remains well diversified, with gains on the sale of mortgage loans increasing $76,000 and customer servicing fees increasing $50,000, helping to partially offset lower fee activity,” Mr. Klein noted.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Dec. 2025			Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024				Prior Year Growth
Noninterest Income (NII)	$	3,708		$	4,244		$	5,048		$	4,107		$	4,557			$	(849	)
NII / Total Revenue		22.6	%		25.6	%		29.4	%		26.7	%		29.5	%			-6.9	%
NII / Average Assets		1.0	%		1.1	%		1.4	%		1.1	%		1.3	%			-0.3	%
Total Revenue Growth		6.3	%		15.9	%		22.3	%		17.2	%		2.2	%			4.1	%
Noninterest Expense (NIE)	$	11,239		$	11,498		$	11,852		$	12,410		$	11,003			$	236
Efficiency Ratio		68.1	%		69.0	%		68.9	%		80.0	%		71.1	%			-3.0	%
NIE / Average Assets		2.9	%		3.0	%		3.2	%		3.4	%		3.2	%			-0.3	%
Net Noninterest Expense/Avg. Assets		-1.9	%		-1.9	%		-1.8	%		-2.3	%		-1.8	%			-0.1	%
Total Expense Growth		2.1	%		4.5	%		11.1	%		20.7	%		6.1	%			-4.0	%

Noninterest expense for the fourth quarter of 2025 totaled $11.2 million, an increase of 2.1 percent from the prior-year period, driven primarily by higher net occupancy costs, state and local taxes, and other noninterest expenses. These increases were partially offset by lower salary and benefit expenses, as well as reduction in professional fees and marketing costs. “Our efficiency ratio for the fourth quarter of 2025 was 68.1 percent, reflecting continued discipline in expense management as we balanced targeted investments with revenue performance,” stated Mr. Klein.

Balance Sheet

As of December 31, 2025, SB Financial reported total assets of $1.55 billion, an increase from the linked quarter and the previous year. Year-over-year growth was primarily driven by strong growth in the loan portfolio, which reached $1.18 billion, marking a $133.9 million or 12.8 percent increase year over year. Loan growth also included $18.2 million in loans added with the completion of the Marblehead acquisition. Cash increased by $45.6 million from the prior year, from investment portfolio runoff and deposit growth. Key metrics this quarter included our loan-to-deposit ratio of 90.3 percent and our loan to asset ratio of 76 percent, both of which remain within the upper range of the Company’s target levels.

Total deposits increased to $1.31 billion, growing $154.6 million, or 13.4 percent, year over year, including $47.1 million in low-cost deposits from the acquisition and $107.5 million of organic deposit growth. Organic growth was supported by continued deposit gathering activity and customer engagement across SB Financial’s markets. Shareholders’ equity totaled $141.2 million at quarter end, representing an increase of $13.7 million from the prior year, or an increase of $3.01 per share, reflecting earnings retention and disciplined balance sheet management.

During the fourth quarter, SB Financial repurchased approximately 32,000 shares, a decrease from the prior quarter, reflecting management’s disciplined capital deployment and its assessment of market conditions and capital priorities during the period. The Company remains focused on a balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases, while maintaining flexibility to support organic growth, strategic opportunities, and capital strength.

“As we move into the first quarter of 2026, the Company remains well positioned, supported by a strong balance sheet, solid asset quality and disciplined approach to capital management,” said Mr. Klein. “Loan balances continued to grow over the past year, driven by steady client activity and consistent execution across our markets, while credit performance and reserve coverage remained sound. While we navigated variability across certain revenue categories during the quarter, our diversified business model and funding profile continue to provide stability. Looking ahead, we remain focused on prudent organic growth, disciplined expense management, and thoughtful capital deployment to support sustainable performance and long-term shareholder value.

Loan Balances
($ in thousands, except ratios)	Dec. 2025			Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Annual Growth
Commercial	$	113,878		$	117,581		$	118,984		$	125,878		$	124,764		$	(10,886	)
% of Total		9.6	%		10.6	%		10.9	%		11.6	%		11.9	%		-8.7	%
Commercial RE		596,983			535,307			525,671			509,518			479,573			117,410
% of Total		50.6	%		48.2	%		48.0	%		46.8	%		45.8	%		24.5	%
Agriculture		76,514			65,150			60,924			61,443			64,680			11,834
% of Total		6.5	%		5.9	%		5.6	%		5.6	%		6.2	%		18.3	%
Residential RE		304,741			309,140			310,126			319,307			308,378			(3,637	)
% of Total		25.8	%		27.8	%		28.3	%		29.3	%		29.5	%		-1.2	%
Consumer & Other		88,475			83,367			79,014			72,128			69,340			19,135
% of Total		7.5	%		7.5	%		7.2	%		6.6	%		6.6	%		27.6	%
Total Loans	$	1,180,591		$	1,110,545		$	1,094,719		$	1,088,274		$	1,046,735		$	133,856
Total Growth Percentage																	12.8	%
Deposit Balances
($ in thousands, except ratios)	Dec. 2025			Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024			Annual Growth
Non-Int DDA	$	254,063		$	246,725		$	241,245		$	240,446		$	232,155		$	21,908
% of Total		19.4	%		19.5	%		19.3	%		18.9	%		20.1	%		9.4	%
Interest DDA		202,501			194,420			205,581			208,583			201,085			1,416
% of Total		15.5	%		15.4	%		16.4	%		16.4	%		17.4	%		0.7	%
Savings		296,484			290,111			282,311			285,902			237,987			58,497
% of Total		22.7	%		23.0	%		22.6	%		22.5	%		20.6	%		24.6	%
Money Market		280,896			261,953			249,536			257,013			222,161			58,735
% of Total		21.5	%		20.7	%		20.0	%		20.2	%		19.3	%		26.4	%
Time Deposits		273,300			269,313			271,149			279,276			259,217			14,083
% of Total		20.9	%		21.3	%		21.7	%		22.0	%		22.5	%		5.4	%
Total Deposits	$	1,307,244		$	1,262,522		$	1,249,822		$	1,271,220		$	1,152,605		$	154,639
Total Growth Percentage																	13.4	%

Asset Quality

As of December 31, 2025, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.7 million, representing 0.30 percent of total assets, a decrease of $833,000 from $5.5 million or 0.40 percent of total assets, in the prior year, and a modest decline from the linked quarter, which reported nonperforming assets of $4.9 million or 0.32 percent of total assets.

The allowance for credit losses remained strong at 1.36 percent of total loans, providing coverage of 351.9 percent of nonperforming loans. This level was consistent with the linked quarter and represented a meaningful improvement compared to the prior year period, consistent with the Company’s disciplined credit risk framework. Net loan charge-offs to average loans remained modest at four basis points, increasing slightly from zero basis points in the linked quarter and improving from seven basis points in the prior year. Collectively, these metrics reflect SB Financial’s continued emphasis on disciplined underwriting and effective credit administration.

“Our credit results this quarter reflect continued stability across the loan portfolio and further progress in managing problem assets,” said Mr. Klein “Nonperforming assets declined from the prior quarter as we maintained disciplined credit standards, while reserve coverage and charge-off levels remained consistent with our risk appetite. We will continue to emphasize disciplined underwriting and proactive credit management as we support measured growth across our markets.” 

Nonperforming Assets																Annual Change
($ in thousands, except ratios)	Dec. 2025			Sep. 2025			Jun. 2025			Mar. 2025			Dec. 2024
Commercial & Agriculture	$	2,256		$	2,243		$	3,274		$	3,418		$	2,927		$	(671	)
% of Total Com./Ag. loans		1.18	%		1.23	%		1.82	%		1.82	%		1.55	%		-22.9	%
Commercial RE		771			778			816			798			807			(36	)
% of Total CRE loans		0.13	%		0.15	%		0.16	%		0.16	%		0.17	%		-4.5	%
Residential RE		1,322			1,400			1,577			1,608			1,539			(217	)
% of Total Res. RE loans		0.43	%		0.45	%		0.51	%		0.50	%		0.50	%		-14.1	%
Consumer & Other		230			195			205			227			243			(13	)
% of Total Con./Oth. loans		0.26	%		0.23	%		0.26	%		0.31	%		0.35	%		-5.3	%
Total Nonaccruing Loans		4,579			4,616			5,872			6,051			5,516			(937	)
% of Total loans		0.39	%		0.42	%		0.54	%		0.56	%		0.53	%		-17.0	%
Foreclosed Assets and Other Assets		104			237			284			73			-			104
Total Change (%)																N/M
Total Nonperforming Assets	$	4,683		$	4,853		$	6,156		$	6,124		$	5,516		$	(833	)
% of Total assets		0.30	%		0.32	%		0.41	%		0.41	%		0.40	%		-15.10	%

Webcast and Conference Call

The Company will hold the fourth quarter 2025 earnings conference call and webcast on January 30, 2026, at 11:00 a.m. EST. 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 27 offices: 25 in eleven Ohio counties and two in Northeast Indiana, and 27 ATMs. State Bank has four loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. 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
	[email protected]
	Anthony V. Cosentino
	Executive Vice President and
	Chief Financial Officer
	[email protected]

SB FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS - (Unaudited)
	December				September				June				March				December
($ in thousands)		2025				2025				2025				2025				2024
Cash and due from banks	$	71,543			$	85,025			$	79,463			$	105,145			$	25,928
Interest bearing time deposits		1,140				2,025				1,565				1,565				1,565
Available-for-sale securities		188,626				193,190				195,955				199,721				201,587
Loans held for sale		1,761				4,736				12,774				4,286				6,770
Loans, net of unearned income		1,180,591				1,110,545				1,094,719				1,088,274				1,046,735
Allowance for credit losses		(16,114	)			(15,943	)			(15,645	)			(15,391	)			(15,096	)
Premises and equipment, net		21,688				21,764				21,857				21,875				20,456
Federal Reserve and FHLB Stock, at cost		5,610				5,466				5,466				5,340				5,223
Foreclosed assets		104				237				284				73				-
Interest receivable		5,490				5,455				5,299				5,072				4,908
Goodwill		27,158				27,158				27,158				27,158				23,239
Cash value of life insurance		32,208				32,004				31,060				30,871				30,685
Mortgage servicing rights		15,254				15,347				15,458				14,965				14,868
Other assets		10,308				9,254				10,888				12,048				12,649
Total assets	$	1,545,367			$	1,496,263			$	1,486,301			$	1,501,002			$	1,379,517
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing demand	$	254,063			$	246,725			$	241,245			$	240,446			$	232,155
Interest bearing demand		202,501				194,420				205,581				208,583				201,085
Savings		296,484				290,111				282,311				285,902				237,987
Money market		280,896				261,953				249,536				257,013				222,161
Time deposits		273,300				269,313				271,149				279,276				259,217
Total deposits		1,307,244				1,262,522				1,249,822				1,271,220				1,152,605
Short-term borrowings		9,230				10,976				15,640				11,058				10,585
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		19,739				19,726				19,715				19,702				19,690
Interest payable		2,460				2,739				2,258				2,634				2,351
Other liabilities		20,148				18,051				19,908				19,552				21,468
Total liabilities		1,404,131				1,359,324				1,352,653				1,369,476				1,252,009
Shareholders' Equity
Common stock		61,319				61,319				61,319				61,319				61,319
Additional paid-in capital		15,160				15,086				15,139				14,955				15,194
Retained earnings		126,311				123,370				120,273				117,397				116,186
Accumulated other comprehensive loss		(21,481	)			(23,412	)			(25,492	)			(26,872	)			(30,234	)
Treasury stock		(40,073	)			(39,424	)			(37,591	)			(35,273	)			(34,957	)
Total shareholders' equity		141,236				136,939				133,648				131,526				127,508
Total liabilities and shareholders' equity	$	1,545,367			$	1,496,263			$	1,486,301			$	1,501,002			$	1,379,517

SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except per share & ratios)	At and for the Three Months Ended																	Twelve Months Ended
	December				September			June			March			December				December			December
Interest income		2025				2025			2025			2025			2024				2025			2024
Loans
Taxable	$	17,234			$	16,449		$	16,059		$	15,244		$	14,920			$	64,986		$	56,863
Tax exempt		107				117			116			115			122				455			496
Securities
Taxable		1,096				1,097			1,133			1,169			1,178				4,495			4,870
Tax exempt		36				35			35			38			35				144			146
Other interest income		799				1,111			1,124			806			592				3,840			1,974
Total interest income		19,272				18,809			18,467			17,372			16,847				73,920			64,349
Interest expense
Deposits		5,820				5,721			5,597			5,352			5,169				22,490			21,035
Repurchase agreements & other		22				28			21			24			41				95			154
Federal Home Loan Bank advances		370				369			366			362			369				1,467			1,721
Trust preferred securities		154				162			161			160			177				637			739
Subordinated debt		194				195			194			195			194				778			778
Total interest expense		6,560				6,475			6,339			6,093			5,950				25,467			24,427
Net interest income		12,712				12,334			12,128			11,279			10,897				48,453			39,922
Provision for credit losses		198				124			597			387			(76	)			1,306			124
Net interest income after provision
for credit losses		12,514				12,210			11,531			10,892			10,973				47,147			39,798
Noninterest income
Wealth management fees		900				912			859			864			916				3,535			3,511
Customer service fees		892				887			886			879			842				3,544			3,467
Gain on sale of mtg. loans & OMSR		1,272				1,328			1,566			849			1,196				5,015			4,565
Mortgage loan servicing fees, net		199				158			594			611			816				1,562			2,183
Gain on sale of non-mortgage loans		38				8			82			15			10				143			145
Title insurance revenue		525				544			582			397			478				2,048			1,635
Net gain on sales of securities		-				-			-			-			-				-			-
Gain (loss) on sale of assets		-				-			-			-			-				-			200
Other		(118	)			407			479			492			299				1,260			1,311
Total noninterest income		3,708				4,244			5,048			4,107			4,557				17,107			17,017
Noninterest expense
Salaries and employee benefits		6,047				6,198			6,595			6,237			6,185				25,077			23,603
Net occupancy expense		822				801			793			893			702				3,309			2,884
Equipment expense		1,154				1,188			1,121			1,072			1,127				4,535			4,333
Data processing fees		790				723			888			1,439			821				3,840			3,075
Professional fees		805				863			892			1,034			895				3,594			2,927
Marketing expense		122				174			190			165			207				651			821
Telephone and communication expense		124				123			125			139			136				511			525
Postage and delivery expense		140				157			107			137			116				541			447
State, local and other taxes		331				268			268			224			224				1,091			907
Employee expense		158				255			176			174			168				763			733
Other expenses		746				748			697			896			422				3,087			2,704
Total noninterest expense		11,239				11,498			11,852			12,410			11,003				46,999			42,959
Income before income tax expense		4,983				4,956			4,727			2,589			4,527				17,255			13,856
Income tax expense		1,065				910			875			431			892				3,281			2,386
Net income	$	3,918			$	4,046		$	3,852		$	2,158		$	3,635			$	13,974		$	11,470
Common share data:
Basic earnings per common share	$	0.63			$	0.64		$	0.60		$	0.33		$	0.55			$	2.19		$	1.72
Diluted earnings per common share	$	0.63			$	0.64		$	0.60		$	0.33		$	0.55			$	2.19		$	1.72
Average shares outstanding (in thousands):
Basic:		6,252				6,297			6,448			6,481			6,575				6,369			6,660
Diluted:		6,266				6,311			6,459			6,502			6,599				6,388			6,680

SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share & ratios)		At and for the Three Months Ended																				Twelve Months Ended
		December				September				June				March				December				December				December
SUMMARY OF OPERATIONS			2025				2025				2025				2025				2024				2025				2024
Net interest income		$	12,712			$	12,334			$	12,128			$	11,279			$	10,897			$	48,453			$	39,922
Tax-equivalent adjustment			38				40				40				41				42				159				171
Tax-equivalent net interest income			12,750				12,374				12,168				11,320				10,939				48,612				40,093
Provision for credit loss			198				124				597				387				(76	)			1,306				124
Noninterest income			3,708				4,244				5,048				4,107				4,557				17,107				17,017
Total operating revenue			16,420				16,578				17,176				15,386				15,454				65,560				56,939
Noninterest expense			11,239				11,498				11,852				12,410				11,003				46,999				42,959
Pre-tax pre-provision income			5,181				5,080				5,324				2,976				4,451				18,561				13,980
Net income			3,918				4,046				3,852				2,158				3,635				13,974				11,470
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.63				0.64				0.60				0.33				0.55				2.19				1.72
Diluted earnings per share			0.63				0.64				0.60				0.33				0.55				2.19				1.72
Common dividends			0.155				0.150				0.150				0.145				0.145				0.600				0.560
Book value per common share			22.65				21.85				21.02				20.29				19.64				22.65				19.64
Tangible book value per common share (TBV)			18.00				17.21				16.44				15.79				16.00				18.00				16.00
Market price per common share			22.27				19.29				19.10				20.82				20.91				22.27				20.91
Market price to TBV			123.7	%			112.1	%			116.2	%			131.8	%			130.7	%			123.7	%			130.7	%
Market price to trailing 12 month EPS			10.1				9.1				10.4				12.2				12.1				10.1				12.1
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.01	%			1.07	%			1.03	%			0.60	%			1.04	%			0.93	%			0.84	%
Pre-tax pre-provision ROAA			1.34	%			1.34	%			1.42	%			0.83	%			1.27	%			1.33	%			1.10	%
Return on average equity (ROE)			11.08	%			12.08	%			11.67	%			6.63	%			11.07	%			10.38	%			9.19	%
Return on average tangible equity			13.97	%			15.47	%			14.97	%			8.32	%			13.51	%			13.22	%			11.34	%
Efficiency ratio			68.09	%			69.00	%			68.90	%			80.00	%			71.09	%			71.33	%			75.33	%
Earning asset yield			5.32	%			5.31	%			5.29	%			5.23	%			5.15	%			5.28	%			4.91	%
Cost of interest bearing liabilities			2.34	%			2.33	%			2.33	%			2.32	%			2.35	%			2.33	%			2.48	%
Net interest margin			3.51	%			3.48	%			3.48	%			3.40	%			3.33	%			3.46	%			3.05	%
Tax equivalent effect			0.01	%			0.02	%			0.01	%			0.01	%			0.01	%			0.01	%			0.01	%
Net interest margin, tax equivalent			3.52	%			3.50	%			3.49	%			3.41	%			3.34	%			3.47	%			3.06	%
Non interest income/Average assets			0.96	%			1.12	%			1.35	%			1.14	%			1.30	%			1.14	%			1.25	%
Non interest expense/Average assets			2.90	%			3.04	%			3.17	%			3.45	%			3.14	%			3.13	%			3.16	%
Net noninterest expense/Average assets			-1.94	%			-1.92	%			-1.82	%			-2.31	%			-1.84	%			-1.99	%			-1.91	%
ASSET QUALITY RATIOS:
Gross charge-offs			133				11				49				86				195				279				290
Recoveries			3				9				3				2				13				17				40
Net charge-offs			130				2				46				84				182				262				250
Nonperforming loans/Total loans			0.39	%			0.42	%			0.54	%			0.56	%			0.53	%			0.39	%			0.53	%
Nonperforming assets/Loans & OREO			0.40	%			0.44	%			0.56	%			0.56	%			0.53	%			0.40	%			0.53	%
Nonperforming assets/Total assets			0.30	%			0.32	%			0.41	%			0.41	%			0.40	%			0.30	%			0.40	%
Allowance for credit loss/Nonperforming loans			351.91	%			345.39	%			266.43	%			254.35	%			273.68	%			351.91	%			273.68	%
Allowance for credit loss/Total loans			1.36	%			1.44	%			1.43	%			1.41	%			1.44	%			1.36	%			1.44	%
Net loan charge-offs/Average loans (ann.)			0.04	%			0.00	%			0.02	%			0.03	%			0.07	%			0.02	%			0.02	%
Loan loss provision/Net charge-offs		N/M				N/M				N/M				N/M				N/M				N/M				N/M
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			90.31	%			87.96	%			87.59	%			85.61	%			90.81	%			90.31	%			90.81	%
Equity/ Assets			9.14	%			9.15	%			8.99	%			8.76	%			9.24	%			9.14	%			9.24	%
Tangible equity/Tangible assets			7.40	%			7.35	%			7.17	%			6.96	%			7.66	%			7.40	%			7.66	%
Common equity tier 1 ratio (Bank)			11.78	%			12.48	%			12.53	%			12.35	%			13.43	%			11.78	%			13.43	%
END OF PERIOD BALANCES
Total assets			1,545,367				1,496,263				1,486,301				1,501,002				1,379,517				1,545,367				1,379,517
Total loans			1,180,591				1,110,545				1,094,719				1,088,274				1,046,735				1,180,591				1,046,735
Deposits			1,307,244				1,262,522				1,249,822				1,271,220				1,152,605				1,307,244				1,152,605
Shareholders equity			141,236				136,939				133,648				131,526				127,508				141,236				127,508
Goodwill and intangibles			28,989				29,048				29,107				29,125				23,597				28,989				23,597
Tangible equity			112,247				107,891				104,541				102,401				103,911				112,247				103,911
Mortgage servicing portfolio			1,479,982				1,470,360				1,456,374				1,432,184				1,427,318				1,479,982				1,427,318
Wealth/Brokerage assets under care			566,004				563,036				536,836				519,158				547,697				566,004				547,697
Total assets under care			3,591,353				3,529,659				3,479,511				3,452,344				3,354,532				3,591,353				3,354,532
Full-time equivalent employees			252				253				256				262				252				252				252
Period end common shares outstanding			6,236				6,268				6,359				6,483				6,494				6,236				6,494
Market capitalization (all)			138,883				120,907				121,453				134,982				135,780				138,883				135,780
AVERAGE BALANCES
Total assets			1,536,215				1,502,389				1,498,756				1,459,896				1,395,473				1,499,323				1,361,274
Total earning assets			1,436,207				1,404,330				1,399,485				1,346,354				1,301,872				1,398,888				1,267,794
Total loans			1,158,567				1,104,175				1,076,328				1,076,328				1,040,580				1,108,531				1,014,375
Deposits			1,299,512				1,270,783				1,270,798				1,227,449				1,163,531				1,267,201				1,130,973
Shareholders equity			140,315				132,866				132,353				131,944				130,647				134,606				124,742
Goodwill and intangibles			29,027				29,077				29,116				26,714				23,605				28,865				23,629
Tangible equity			111,288				103,789				103,237				105,230				107,042				105,741				101,113
Average basic shares outstanding			6,252				6,297				6,448				6,481				6,575				6,369				6,660
Average diluted shares outstanding			6,266				6,311				6,459				6,502				6,599				6,388				6,680

SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three and Twelve Months Ended Dec. 31, 2025 and 2024
($ in thousands)	Three Months Ended Dec. 31, 2025								Three Months Ended Dec. 31, 2024
	Average					Average			Average					Average
Assets	Balance			Interest		Rate			Balance			Interest		Rate
Taxable securities	$	192,092		$	1,096	2.26	%		$	205,848		$	1,321	2.55	%
Overnight Cash		79,464			799	3.99	%			49,141			449	3.63	%
Nontaxable securities		6,084			36	2.35	%			6,303			35	2.21	%
Loans, net		1,158,567			17,341	5.94	%			1,040,580			15,042	5.75	%
Total earning assets		1,436,207			19,272	5.32	%			1,301,872			16,847	5.15	%
Cash on hand		5,449								4,262
Allowance for loan losses		(16,044	)							(15,070	)
Premises and equipment		21,832								20,642
Other assets		88,771								83,767
Total assets	$	1,536,215							$	1,395,473
Liabilities
Savings, MMDA and interest bearing demand	$	764,806		$	3,468	1.80	%		$	669,987		$	2,803	1.66	%
Time deposits		272,398			2,352	3.43	%			259,093			2,366	3.63	%
Repurchase agreements & other		10,709			22	0.82	%			13,229			41	1.23	%
Advances from Federal Home Loan Bank		35,000			370	4.19	%			35,000			369	4.19	%
Trust preferred securities		10,310			154	5.93	%			10,310			177	6.83	%
Subordinated debt		19,731			194	3.90	%			19,674			194	3.92	%
Total interest bearing liabilities		1,112,954			6,560	2.34	%			1,007,293			5,950	2.35	%
Non interest bearing demand		262,308			-					234,451			-
Total funding		1,375,262				1.89	%			1,241,744				1.91	%
Other liabilities		20,638								23,082
Total liabilities		1,395,900								1,264,826
Equity		140,315								130,647
Total liabilities and equity	$	1,536,215							$	1,395,473
Net interest income				$	12,712							$	10,897
Net interest income as a percent of average interest-earning assets - GAAP measure						3.51	%							3.33	%
Net interest income as a percent of average interest-earning assets - non GAAP						3.52	%							3.34	%
- Computed on a fully tax equivalent (FTE) basis
	Twelve Months Ended Dec. 31, 2025								Twelve Months Ended Dec. 31, 2024
	Average					Average			Average					Average
Assets	Balance			Interest		Rate			Balance			Interest		Rate
Taxable securities	$	196,831		$	4,495	2.28	%		$	247,026		$	5,490	2.22	%
Overnight Cash		87,283			3,840	4.40	%			43,171			1,354	3.14	%
Nontaxable securities		6,243			144	2.31	%			6,393			146	2.28	%
Loans, net		1,108,531			65,441	5.90	%			1,014,375			57,359	5.65	%
Total earning assets		1,398,888			73,920	5.28	%			1,310,965			64,349	4.91	%
Cash on hand		5,390								4,388
Allowance for loan losses		(15,631	)							(15,536	)
Premises and equipment		21,624								20,929
Other assets		89,052								40,528
Total assets	$	1,499,323							$	1,361,274
Liabilities
Savings, MMDA and interest bearing demand	$	742,153		$	13,092	1.76	%		$	643,710		$	11,073	1.72	%
Time deposits		273,228			9,398	3.44	%			259,818			9,962	3.83	%
Repurchase agreements & Other		12,085			95	0.79	%			14,336			154	1.07	%
Advances from Federal Home Loan Bank		35,011			1,467	4.19	%			39,092			1,721	4.40	%
Trust preferred securities		10,310			637	6.18	%			10,310			739	7.17	%
Subordinated debt		19,713			778	3.95	%			19,665			778	3.96	%
Total interest bearing liabilities		1,092,500			25,467	2.33	%			986,931			24,427	2.48	%
Non interest bearing demand		251,820				1.89	%			227,445				2.01	%
Total funding		1,344,320								1,214,376
Other liabilities		20,397								22,156
Total liabilities		1,364,717								1,236,532
Equity		134,606								124,742
Total liabilities and equity	$	1,499,323							$	1,361,274
Net interest income				$	48,453							$	39,922
Net interest income as a percent of average interest-earning assets - GAAP measure						3.46	%							3.05	%
Net interest income as a percent of average interest-earning assets - non GAAP						3.47	%							3.06	%
- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended								Twelve Months Ended
($ in thousands, except per share & ratios)	Dec. 31, 2025				Dec. 31, 2024				Dec. 31, 2025				Dec. 31, 2024
Total Operating Revenue	$	16,420			$	14,454			$	65,560			$	56,939
Adjustment to (deduct)/add OMSR recapture/impairment *		157				(288	)			289				(42	)
Adjusted Total Operating Revenue		16,577				14,166				65,849				56,897
Total Operating Expense		11,239				11,003				46,999				42,959
Adjustment for merger expenses		-				-				(726	)			-
Adjusted Total Operating Expense		11,239				11,003				46,273				42,959
Income before Income Taxes		4,983				4,527				17,255				13,856
Adjustment for OMSR*/Merger Expenses		157				(288	)			1,015				(42	)
Adjusted Income before Income Taxes		5,140				4,239				18,270				13,814
Provision for Income Taxes		1,065				892				3,281				2,386
Adjustment for OMSR/Merger Expenses **		33				(60	)			213				(9	)
Adjusted Provision for Income Taxes		1,098				832				3,494				2,377
Net Income		3,918				3,635				13,974				11,470
Adjustment for OMSR*/Merger Expenses		124				(228	)			802				(33	)
Adjusted Net Income		4,042				3,407				14,776				11,437
Diluted Earnings per Share		0.63				0.55				2.19				1.72
Adjustment for OMSR*/Merger Expenses		0.02				(0.03	)			0.13				(0.00	)
Adjusted Diluted Earnings per Share	$	0.65			$	0.52			$	2.31			$	1.71
Return on Average Assets		1.01	%			1.04	%			0.93	%			0.84	%
Adjustment for OMSR*/Merger Expenses		0.01	%			-0.02	%			0.05	%			0.00	%
Adjusted Return on Average Assets		1.02	%			1.02	%			0.98	%			0.84	%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate