SB Financial Group Announces Fourth Quarter 2025 Results

GlobeNewswire | SB Financial Group, Inc.
Today at 9:15pm UTC

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 $11.5 million in the prior year.
Earnings HighlightsThree Months Ended Twelve Months Ended
($ in thousands, except per share & ratios)Dec. 2025Dec. 2024% Change Dec. 2025Dec. 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024Annual 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024Annual 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 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
 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)
          
 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
AssetsBalanceInterestRate BalanceInterestRate
        
Taxable securities$192,092 $1,0962.26% $205,848 $1,3212.55%
Overnight Cash 79,464  7993.99%  49,141  4493.63%
Nontaxable securities 6,084  362.35%  6,303  352.21%
Loans, net 1,158,567  17,3415.94%  1,040,580  15,0425.75%
Total earning assets 1,436,207  19,2725.32%  1,301,872  16,8475.15%
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 $3,4681.80% $669,987 $2,8031.66%
Time deposits 272,398  2,3523.43%  259,093  2,3663.63%
Repurchase agreements & other 10,709  220.82%  13,229  411.23%
Advances from Federal Home Loan Bank 35,000  3704.19%  35,000  3694.19%
Trust preferred securities 10,310  1545.93%  10,310  1776.83%
Subordinated debt 19,731  1943.90%  19,674  1943.92%
Total interest bearing liabilities 1,112,954  6,5602.34%  1,007,293  5,9502.35%
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 measure3.51%   3.33%
        
Net interest income as a percent of average interest-earning assets - non GAAP3.52%   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
AssetsBalanceInterestRate BalanceInterestRate
        
Taxable securities$196,831 $4,4952.28% $247,026 $5,4902.22%
Overnight Cash 87,283  3,8404.40%  43,171  1,3543.14%
Nontaxable securities 6,243  1442.31%  6,393  1462.28%
Loans, net 1,108,531  65,4415.90%  1,014,375  57,3595.65%
Total earning assets 1,398,888  73,9205.28%  1,310,965  64,3494.91%
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 $13,0921.76% $643,710 $11,0731.72%
Time deposits 273,228  9,3983.44%  259,818  9,9623.83%
Repurchase agreements & Other 12,085  950.79%  14,336  1541.07%
Advances from Federal Home Loan Bank 35,011  1,4674.19%  39,092  1,7214.40%
Trust preferred securities 10,310  6376.18%  10,310  7397.17%
Subordinated debt 19,713  7783.95%  19,665  7783.96%
Total interest bearing liabilities 1,092,500  25,4672.33%  986,931  24,4272.48%
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 measure3.46%   3.05%
        
Net interest income as a percent of average interest-earning assets - non GAAP3.47%   3.06%
- Computed on a fully tax equivalent (FTE) basis       



Non-GAAP reconciliationThree 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      

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