Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 2, 2023 (October 30, 2023)

SB FINANCIAL GROUP, INC

(Exact name of registrant as specified in its charter)

Ohio		0-13507		34-1395608
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

401 Clinton Street, Defiance, OH		43512
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (419) 783-8950

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registererd
Common Shares, No Par Value 6,808,615 Outstanding at November 2, 2023		SBFG		The NASDAQ Stock Market, LLC (NASDAQ Capital Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On October 30, 2023, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the third quarter 2023. A copy of the October 30, 2023 news release is furnished as Exhibit 99.1 and is incorporated herein by reference.

The information in this Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.

Item 9.01. Financial Statements and Exhibits.

(a) Not Applicable

(b) Not Applicable

(d) Exhibits

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on October 30, 2023, reporting financial results for the third quarter 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SB FINANCIAL GROUP, INC.

Dated: November 2, 2023	By:	/s/ Anthony V. Cosentino
		Anthony V. Cosentino
		Chief Financial Officer

INDEX TO EXHIBITS

Current Report on Form 8-K

Dated November 2, 2023

SB Financial Group, Inc.

Exhibit No.		Description
99.1		News release issued by SB Financial Group, Inc. on October 30, 2023, reporting financial results for the third quarter 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

Exhibit 99.1

SB Financial Group Announces Third Quarter 2023 Results

DEFIANCE, OH, October 30, 2023 -- 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, 2023.

Third quarter 2023 highlights over the third quarter prior year include:

●

Net income of $2.7 million decreased 19.6 percent with diluted earnings per share (“EPS”) of $0.39 and down to the linked quarter by 12.6 percent

●

Asset quality remained stable, with 30 basis points of non-performing assets and net charge-offs of just $5 thousand in the quarter

●

Coverage of our non-performing loans by the allowance improved by 29 percent to 474 percent

●

Loans were higher from both the prior year and linked quarters and the portfolio has now grown for 7 consecutive quarters

Nine months ended September 30, 2023, highlights over prior-year nine months include:

●

Net income of $8.2 million, down 8.6 percent

●

Adjusted for OMSR recapture, net income is higher by 2.4 percent

●

Noninterest expense of $31.6 million declined 1.4 percent

●

Total net charge-offs year-to-date of just $88 thousand or 0.01 percent of total loans

Third quarter 2023 trailing twelve-month highlights include:

●

Loan growth of $63.8 million, or 6.9 percent

●

Deposit growth remained steady compared to the prior year but increased over the linked quarter by $14.2 million. Deposit costs have increased from the prior year by $8.3 million with the deposit cost of funds reaching 1.53 percent

Earnings Highlights	Three Months Ended									Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2023			Sep. 2022			% Change			Sep. 2023			Sep. 2022			% Change
Operating revenue	$	13,699		$	14,473			-5.3	%	$	41,879		$	43,017			-2.6	%
Interest income		14,796			11,764			25.8	%		43,026			31,632			36.0	%
Interest expense		5,260			1,334			294.3	%		13,337			3,133			325.7	%
Net interest income		9,536			10,430			-8.6	%		29,689			28,499			4.2	%
Provision for credit losses		(6	)		-			0.0	%		389			-			0.0	%
Noninterest income		4,163			4,043			3.0	%		12,190			14,518			-16.0	%
Noninterest expense		10,481			10,384			0.9	%		31,593			32,046			-1.4	%
Net income		2,687			3,343			-19.6	%		8,212			8,988			-8.6	%
Earnings per diluted share		0.39			0.47			-17.0	%		1.18			1.27			-7.1	%
Return on average assets		0.80	%		1.03	%		-22.3	%		0.81	%		0.91	%		-11.0	%
Return on average equity		8.73	%		10.89	%		-19.8	%		8.72	%		9.21	%		-5.3	%

“Funding costs continued to be headwinds for us in the quarter, however we are pleased that we were still able to grow our deposit base from the linked quarter, despite that higher cost” said Mark A. Klein, Chairman, President, and CEO of SB Financial. “Our asset quality continued to be peer leading and our allowance percentage at 1.60 percent provides critical stability and strength as we move forward into a potentially tougher economic environment.”

RESULTS OF OPERATIONS

Consolidated Revenue

Total interest income for the third quarter was up $3.0 million or 25.8 percent from the prior year and from the linked quarter was up nearly 11 percent on an annualized basis, as the yield on earning assets increased 89 basis points to 4.78 percent. However, deposit and other funding costs have risen at a faster pace, reducing net interest margin to 3.08 percent, down 37 basis points compared to the prior year and 7 basis points compared to the linked quarter.

Noninterest income was up from the prior year but down compared to the linked quarter, reflecting higher margins from gain on sale and relative growth in the mortgage sector, offset by weakness in our SBA volume and gain on sale. Wealth management revenues are under pressure from weaker equity markets and a reduction in client assets. For the full year, adjusting for the OMSR recapture, total noninterest income decreased $1.1 million or 8.2 percent due to our mortgage origination and sale volume being lower by 32.7 and 20.7 percent, respectively.

Mortgage Loan Business

Mortgage loan originations for the third quarter of 2023 were $61.2 million, down $7.4 million, or 10.7 percent, from the prior year quarter. Total sales of originated loans increased compared to the prior year, reaching $54.1 million, up $14.9 million, or 38.1 percent as we adjusted pricing and reduced duration risk in order to transition from portfolio production.

Net mortgage banking revenue, comprising gains on the sale of mortgage loans and net loan servicing fees, totaled $1.6 million for the third quarter, up from $1.4 million for the prior year quarter and slightly higher from the linked quarter. The mortgage servicing valuation adjustment was a negative $0.1 million, compared to a positive adjustment of $0.1 million for the prior year quarter. The servicing portfolio at September 30, 2023, was $1.37 billion, an increase of $4.5 million compared to the prior year.

Mr. Klein noted, “Our mortgage volume has remained below historical levels as we adjust to a much higher interest rate environment and limited movement of housing inventory and resulting mortgage activity. Historically, we have seen 20 to 30 percent of our volume from refinance transactions, which is down this year to just 9 percent, further impacting production levels.”

Mortgage Banking																Annual
($ in thousands)	Sep. 2023			Jun. 2023			Mar. 2023			Dec. 2022			Sep. 2022			Growth
Mortgage originations	$	61,200		$	65,387		$	49,366		$	51,219		$	68,557		$	(7,357	)
Mortgage sales		54,085			47,933			25,803			23,590			39,176			14,909
Mortgage servicing portfolio		1,367,209			1,353,904			1,344,158			1,352,016			1,362,666			4,543
Mortgage servicing rights		13,893			13,723			13,548			13,503			13,473			420

Mortgage servicing revenue
Loan servicing fees		850			844			844			851			858			(8	)
OMSR amortization		(334	)		(334	)		(292	)		(310	)		(396	)		62
Net administrative fees		516			510			552			541			462			54
OMSR valuation adjustment		(78	)		(16	)		56			86			65			(143	)
Net loan servicing fees		438			494			608			627			527			(89	)
Gain on sale of mortgages		1,207			1,056			599			550			876			331
Mortgage banking revenue, net	$	1,645		$	1,550		$	1,207		$	1,177		$	1,403		$	242

Noninterest Income and Noninterest Expense

Noninterest income for the quarter increased from the prior year quarter by 3.0 percent and was just slightly below the linked quarter. Gain-on-sale from mortgage loans, was up $0.3 million or 37.8 percent from the prior year. Our sale percentage of originated volume returned to more historical levels with the 88 percent achieved for the quarter marking our highest since early 2020.

For the third quarter of 2023, noninterest expense of $10.5 million was slightly higher than both the prior year and linked quarters. We encountered some one-time expenses in the quarter related to check fraud, which elevated expense levels above our current run rate.

Mr. Klein stated, “As revenue levels have declined, we have been focused on reducing resources and controllable expenses throughout the Company. Our total headcount is down over 7 percent and expenses have declined 1.4 percent for the nine months compared to the prior nine month period.”

Noninterest Income/Noninterest Expense																Annual
($ in thousands, except ratios)	Sep. 2023			Jun. 2023			Mar. 2023			Dec. 2022			Sep. 2022			Growth
Noninterest Income (NII)	$	4,163		$	4,361		$	3,666		$	3,713		$	4,043		$	120
NII / Total Revenue		30.4	%		30.7	%		26.2	%		25.4	%		27.9	%		2.5	%
NII / Average Assets		1.2	%		1.3	%		1.1	%		1.1	%		1.2	%		0.0	%
Total Revenue Growth		-5.3	%		-0.5	%		-2.0	%		-6.7	%		-13.2	%		-5.3	%

Noninterest Expense (NIE)	$	10,481		$	10,339		$	10,773		$	10,269		$	10,384		$	97
Efficiency Ratio		76.4	%		72.7	%		76.9	%		70.2	%		71.6	%		4.8	%
NIE / Average Assets		3.1	%		3.1	%		3.2	%		3.1	%		3.2	%		-0.1	%
Net Noninterest Expense/Avg. Assets		-1.9	%		-1.8	%		-2.1	%		-2.0	%		-2.0	%		0.1	%
Total Expense Growth		0.9	%		-4.3	%		-0.8	%		-11.2	%		-7.7	%		0.9	%

Balance Sheet

As of September 30, 2023, total assets were $1.33 billion, a slight decrease from the linked quarter, and 1.8 percent higher compared to the prior year. Total shareholders’ equity at September 30, 2023, was $112.3 million. Excluding the impact of the investment portfolio net unrealized losses, equity rose to $151.9 million, reflecting a 2.6 percent increase. During the quarter, we repurchased 43,814 shares of our Company stock and we have declared cash dividends of $0.39 per share for the nine-month period, an 8.5 percent increase from the prior period. The investment portfolio of $212.8 million was down $30.5 million or 12.5 percent from a year ago and now constitutes 16.0 percent of total assets.

Total loans held for investment were up $63.8 million or 6.9 percent compared to the prior year. The Allowance for Credit Losses ended the quarter at $15.8 million or 1.60 percent of total loans. The reserve is higher by $2.0 million, or 14.2 percent compared to the prior year due to CECL and negligible charge-offs in the current year. Deposit balances of $1.09 billion at September 30, 2023, were level to the prior year, but were higher compared to the linked quarter by $14.2 million.

Mr. Klein continued, “Loan balances were higher compared to the linked quarter, and we have now grown loans quarter over quarter for seven consecutive quarters. Our commercial pipelines of $44 million remain under pressure in most of our markets, but we continue to aggressively call to expand relationships from both internal and external clients. Asset quality continues to remain stable, and our coverage of non-performing loans has increased to nearly five times at quarter end.”

Loan Balances																Annual
($ in thousands, except ratios)	Sep. 2023			Jun. 2023			Mar. 2023			Dec. 2022			Sep. 2022			Growth
Commercial	$	120,325		$	123,226		$	126,066		$	128,393		$	128,565		$	(8,240	)
% of Total		12.2	%		12.5	%		12.9	%		13.3	%		13.9	%		-6.4	%
Commercial RE		421,736			417,412			419,024			412,809			404,710			17,026
% of Total		42.6	%		42.4	%		42.9	%		42.9	%		43.7	%		4.2	%
Agriculture		60,928			58,222			57,761			64,505			60,522			406
% of Total		6.2	%		5.9	%		5.9	%		6.7	%		6.5	%		0.7	%
Residential RE		320,306			321,365			309,684			291,368			267,135			53,171
% of Total		32.4	%		32.6	%		31.7	%		30.3	%		28.9	%		19.9	%
Consumer & Other		65,726			64,599			63,777			65,000			64,317			1,409
% of Total		6.6	%		6.6	%		6.5	%		6.8	%		7.0	%		2.2	%
Total Loans	$	989,021		$	984,824		$	976,312		$	962,075		$	925,249		$	63,772
Total Growth Percentage																	6.9	%

Deposit Balances																Annual
($ in thousands, except ratios)	Sep. 2023			Jun. 2023			Mar. 2023			Dec. 2022			Sep. 2022			Growth
Non-Int DDA	$	224,182		$	218,411		$	237,175		$	256,799		$	250,791		$	(26,609	)
% of Total		20.7	%		20.4	%		21.4	%		23.6	%		23.1	%		-10.6	%
Interest DDA		174,729			170,282			188,497			191,719			199,523			(24,794	)
% of Total		16.1	%		15.9	%		17.0	%		17.6	%		18.4	%		-12.4	%
Savings		226,077			225,065			227,974			191,272			201,402			24,675
% of Total		20.8	%		21.0	%		20.5	%		17.6	%		18.5	%		12.3	%
Money Market		216,565			217,681			222,203			255,995			258,975			(42,410	)
% of Total		20.0	%		20.3	%		20.0	%		23.6	%		23.8	%		-16.4	%
Time Deposits		243,766			239,717			234,295			190,880			175,202			68,564
% of Total		22.5	%		22.4	%		21.1	%		17.6	%		16.1	%		39.1	%
Total Deposits	$	1,085,319		$	1,071,156		$	1,110,144		$	1,086,665		$	1,085,893		$	(574	)
Total Growth Percentage																	-0.1	%

Asset Quality

SB Financial reported nonperforming assets totaling $4.0 million as of September 30, 2023, marking a decrease of $0.5 million or 12.1 percent from the same quarter last year, despite a slight increase from the linked quarter. The coverage ratio for problem loans, has notably strengthened, improving nearly 100 basis points from the previous year. The enhancement is attributed to both the expansion of the allowance, following a CECL adjustment of $1.4 million, and a concurrent reduction in problem loans.

Nonperforming Assets																Annual
($ in thousands, except ratios)	Sep. 2023			Jun. 2023			Mar. 2023			Dec. 2022			Sep. 2022			Change
Commercial & Agriculture	$	717		$	170		$	185		$	114		$	114		$	603
% of Total Com./Ag. loans		0.40	%		0.09	%		0.10	%		0.06	%		0.06	%		528.9	%
Commercial RE		222			192			199			210			223			(1	)
% of Total CRE loans		0.05	%		0.05	%		0.05	%		0.05	%		0.06	%		-0.4	%
Residential RE		2,182			2,266			2,742			3,020			3,129			(947	)
% of Total Res. RE loans		0.68	%		0.71	%		0.89	%		1.04	%		1.17	%		-30.3	%
Consumer & Other		208			282			270			338			280			(72	)
% of Total Con./Oth. loans		0.32	%		0.44	%		0.42	%		0.52	%		0.44	%		-25.7	%
Total Nonaccruing Loans		3,329			2,910			3,396			3,682			3,746			(417	)
% of Total loans		0.34	%		0.30	%		0.35	%		0.38	%		0.40	%		-11.1	%
Foreclosed Assets and Other Assets		629			625			650			777			756			(127	)
Total Change (%)																	-16.8	%
Total Nonperforming Assets	$	3,958		$	3,535		$	4,046		$	4,459		$	4,502		$	(544	)
% of Total assets		0.30	%		0.26	%		0.30	%		0.33	%		0.35	%		-12.08	%

Webcast and Conference Call

The Company will hold the third quarter 2023 earnings conference call and webcast on October 31, 2023, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 23 offices: 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 23 ATMs. State Bank has six 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 region. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

In May 2023, SB Financial was valued #163 on the American Banker Magazine’s list of top 200 publicly traded Community Bank and Thrifts based on three-year average return on equity.

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 impairment from both net income and non-interest income to report non-GAAP adjusted levels. 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)	2023			2023			2023			2022			2022
ASSETS
Cash and due from banks	$	19,049		$	20,993		$	21,625		$	27,817		$	27,934
Interest bearing time deposits		1,180			1,180			1,380			2,131			2,134
Available-for-sale securities		212,768			227,996			237,607			238,780			243,233
Loans held for sale		3,206			5,684			5,592			2,073			2,979
Loans, net of unearned income		989,021			984,824			976,312			962,075			925,249
Allowance for credit losses		(15,790	)		(15,795	)		(15,442	)		(13,818	)		(13,824	)
Premises and equipment, net		21,934			22,230			22,621			22,829			22,842
Federal Reserve and FHLB Stock, at cost		6,261			7,634			6,054			6,326			5,230
Foreclosed assets and other assets		629			625			650			777			756
Interest receivable		4,457			4,079			3,926			4,091			3,556
Goodwill		23,239			23,239			23,239			23,239			23,239
Cash value of life insurance		29,291			29,183			29,024			28,870			28,713
Mortgage servicing rights		13,893			13,723			13,548			13,503			13,473
Other assets		17,336			15,840			15,157			16,940			17,863
Total assets	$	1,326,474		$	1,341,435		$	1,341,293		$	1,335,633		$	1,303,377

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Non interest bearing demand	$	224,182		$	218,411		$	237,175		$	256,799		$	250,791
Interest bearing demand		174,729			170,282			188,497			191,719			199,523
Savings		226,077			225,065			227,974			191,272			201,402
Money market		216,565			217,681			222,203			255,995			258,975
Time deposits		243,766			239,717			234,295			190,880			175,202
Total deposits		1,085,319			1,071,156			1,110,144			1,086,665			1,085,893

Short-term borrowings		16,519			21,118			15,998			14,923			19,754
Federal Home Loan Bank advances		59,500			81,300			44,500			60,000			35,000
Trust preferred securities		10,310			10,310			10,310			10,310			10,310
Subordinated debt net of issuance costs		19,630			19,618			19,606			19,594			19,582
Interest payable		2,216			1,866			1,441			769			623
Other liabilities		20,632			18,401			19,535			24,944			17,587
Total liabilities		1,214,126			1,223,769			1,221,534			1,217,205			1,188,749

Shareholders’ Equity
Common stock		61,319			61,319			61,319			61,319			61,319
Additional paid-in capital		15,037			15,154			14,953			15,087			15,000
Retained earnings		105,521			103,725			101,548			101,966			99,309
Accumulated other comprehensive loss		(39,517	)		(32,894	)		(29,671	)		(32,120	)		(33,426	)
Treasury stock		(30,012	)		(29,638	)		(28,390	)		(27,824	)		(27,574	)
Total shareholders’ equity		112,348			117,666			119,759			118,428			114,628

Total liabilities and shareholders’ equity	$	1,326,474		$	1,341,435		$	1,341,293		$	1,335,633		$	1,303,377

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except per share & ratios)	At and for the Three Months Ended													Nine Months Ended
	September			June		March			December		September			September		September
	2023			2023		2023			2022		2022			2023		2022
Interest income
Loans
Taxable	$	13,128		$	12,715	$	12,126		$	11,222	$	10,084		$	37,969	$	27,016
Tax exempt		122			121		116			109		92			359		226
Securities
Taxable		1,507			1,524		1,535			1,559		1,536			4,566		4,239
Tax exempt		39			46		47			47		52			132		151
Total interest income		14,796			14,406		13,824			12,937		11,764			43,026		31,632

Interest expense
Deposits		4,194			3,538		2,578			1,440		852			10,310		2,037
Repurchase agreements & other		16			9		10			7		8			35		32
Federal Home Loan Bank advances		666			664		553			258		180			1,883		257
Trust preferred securities		189			172		164			138		99			525		223
Subordinated debt		195			194		195			194		195			584		584
Total interest expense		5,260			4,577		3,500			2,037		1,334			13,337		3,133

Net interest income		9,536			9,829		10,324			10,900		10,430			29,689		28,499

Provision for credit losses		(6	)		145		250			-		-			389		-

Net interest income after provision for loan losses		9,542			9,684		10,074			10,900		10,430			29,300		28,499

Noninterest income
Wealth management fees		837			940		917			907		930			2,694		2,821
Customer service fees		863			871		825			880		844			2,559		2,498
Gain on sale of mtg. loans & OMSR		1,207			1,056		599			550		876			2,862		3,748
Mortgage loan servicing fees, net		438			494		608			627		527			1,540		2,337
Gain on sale of non-mortgage loans		10			218		24			105		125			252		461
Title insurance revenue		429			455		373			454		476			1,257		1,775
Gain (loss) on sale of assets		-			15		(11	)		18		(12	)		4		43
Other		379			312		331			172		277			1,022		835
Total noninterest income		4,163			4,361		3,666			3,713		4,043			12,190		14,518

Noninterest expense
Salaries and employee benefits		5,491			5,721		5,913			5,677		5,858			17,125		18,465
Net occupancy expense		764			802		784			763		769			2,350		2,230
Equipment expense		1,068			1,002		981			1,017		918			3,051		2,599
Data processing fees		648			685		646			627		664			1,979		1,883
Professional fees		623			612		863			738		766			2,098		2,476
Marketing expense		189			213		198			258		200			600		653
Telephone and communication expense		124			124		121			124		134			369		350
Postage and delivery expense		100			78		87			121		75			265		301
State, local and other taxes		218			218		228			277		250			664		805
Employee expense		141			156		188			157		145			485		456
Other expenses		1,115			728		764			510		605			2,607		1,828
Total noninterest expense		10,481			10,339		10,773			10,269		10,384			31,593		32,046

Income before income tax expense		3,224			3,706		2,967			4,344		4,089			9,897		10,971
Income tax expense		537			631		517			811		746			1,685		1,983

Net income	$	2,687		$	3,075	$	2,450		$	3,533	$	3,343		$	8,212	$	8,988

Common share data:
Basic earnings per common share	$	0.40		$	0.45	$	0.35		$	0.51	$	0.48		$	1.20	$	1.28
Diluted earnings per common share	$	0.39		$	0.44	$	0.35		$	0.50	$	0.47		$	1.18	$	1.27

Average shares outstanding (in thousands):
Basic:		6,791			6,847		6,933			6,945		6,968			6,857		7,026
Diluted:		6,878			6,910		7,008			7,021		7,033			6,944		7,098

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share & ratios)	At and for the Three Months Ended															Nine Months Ended
	September			June			March			December			September			September			September
SUMMARY OF OPERATIONS	2023			2023			2023			2022			2022			2023			2022
Net interest income	$	9,536		$	9,829		$	10,324		$	10,900		$	10,430		$	29,689		$	28,499
Tax-equivalent adjustment		43			44			43			41			38			131			100
Tax-equivalent net interest income		9,579			9,873			10,367			10,941			10,468			29,820			28,599
Provision for credit loss		(6	)		145			250			-			-			389			-
Noninterest income		4,163			4,361			3,666			3,713			4,043			12,190			14,518
Total operating revenue		13,699			14,190			13,990			14,613			14,473			41,879			43,017
Noninterest expense		10,481			10,339			10,773			10,269			10,384			31,593			32,046
Pre-tax pre-provision income		3,218			3,851			3,217			4,344			4,088			10,286			10,971
Pretax income		3,224			3,706			2,967			4,344			4,088			9,897			10,971
Net income		2,687			3,075			2,450			3,533			3,343			8,212			8,988

PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.40			0.45			0.35			0.51			0.48			1.20			1.28
Diluted earnings per share		0.39			0.44			0.35			0.50			0.47			1.18			1.27
Common dividends		0.130			0.130			0.125			0.125			0.120			0.385			0.355
Book value per common share		16.59			17.30			17.37			17.08			16.49			16.59			16.49
Tangible book value per common share (TBV)		13.09			13.81			13.93			13.65			13.07			13.09			13.07
Market price per common share		13.50			12.62			14.13			16.95			16.85			13.50			16.85
Market price to TBV		103.1	%		91.4	%		101.4	%		124.2	%		128.9	%		103.1	%		128.9	%
Market price to trailing 12 month EPS		8.0			7.1			8.2			9.6			9.6			8.0			9.6

PERFORMANCE RATIOS:
Return on average assets (ROAA)		0.80	%		0.91	%		0.73	%		1.08	%		1.03	%		0.81	%		0.91	%
Pre-tax pre-provision ROAA		0.96	%		1.14	%		0.96	%		1.32	%		1.26	%		1.10	%		1.19	%
Return on average equity		8.73	%		10.01	%		8.37	%		12.17	%		10.89	%		8.72	%		9.21	%
Return on average tangible equity		10.82	%		12.40	%		10.50	%		15.30	%		13.51	%		10.75	%		11.28	%
Efficiency ratio		76.34	%		72.71	%		76.85	%		70.16	%		71.63	%		75.28	%		74.38	%
Earning asset yield		4.78	%		4.61	%		4.49	%		4.27	%		3.89	%		4.61	%		3.42	%
Cost of interest bearing liabilities		2.18	%		1.90	%		1.46	%		0.90	%		0.58	%		1.85	%		0.45	%
Net interest margin		3.08	%		3.15	%		3.35	%		3.60	%		3.45	%		3.18	%		3.08	%
Tax equivalent effect		0.01	%		0.01	%		0.02	%		0.01	%		0.01	%		0.02	%		0.01	%
Net interest margin, tax equivalent		3.09	%		3.16	%		3.37	%		3.61	%		3.46	%		3.20	%		3.09	%
Non interest income/Average assets		1.24	%		1.30	%		1.10	%		1.13	%		1.24	%		1.21	%		1.47	%
Non interest expense/Average assets		3.13	%		3.07	%		3.23	%		3.13	%		3.19	%		3.13	%		3.24	%
Net noninterest expense/Average assets		-1.89	%		-1.78	%		-2.13	%		-2.00	%		-1.95	%		-1.92	%		-1.77	%

ASSET QUALITY RATIOS:
Gross charge-offs		12			32			69			7			9			113			27
Recoveries		7			10			8			1			32			25			46
Net charge-offs		5			22			61			6			(23	)		88			(19	)
Nonperforming loans/Total loans		0.34	%		0.30	%		0.35	%		0.38	%		0.40	%		0.34	%		0.40	%
Nonperforming assets/Loans & OREO		0.40	%		0.36	%		0.41	%		0.46	%		0.49	%		0.40	%		0.49	%
Nonperforming assets/Total assets		0.30	%		0.26	%		0.30	%		0.33	%		0.35	%		0.30	%		0.35	%
Allowance for credit loss/Nonperforming loans		474.32	%		542.78	%		454.71	%		375.29	%		369.03	%		474.32	%		369.03	%
Allowance for credit loss/Total loans		1.60	%		1.60	%		1.58	%		1.44	%		1.49	%		1.60	%		1.49	%
Net loan charge-offs/Average loans (ann.)		0.00	%		0.01	%		0.03	%		0.00	%		(0.01	%)		0.01	%		(0.00	%)

CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		91.13	%		91.94	%		87.94	%		88.53	%		85.21	%		91.13	%		85.21	%
Equity/ Assets		8.47	%		8.77	%		8.93	%		8.87	%		8.79	%		8.47	%		8.79	%
Tangible equity/Tangible assets		6.81	%		7.13	%		7.29	%		7.22	%		7.10	%		6.81	%		7.10	%
Common equity tier 1 ratio (Bank)		13.56	%		13.18	%		13.44	%		13.42	%		13.23	%		13.56	%		13.23	%

END OF PERIOD BALANCES
Total assets		1,326,474			1,341,435			1,341,293			1,335,633			1,303,377			1,326,474			1,303,377
Total loans		989,021			984,824			976,312			962,075			925,249			989,021			925,249
Deposits		1,085,319			1,071,156			1,110,144			1,086,665			1,085,893			1,085,319			1,085,893
Stockholders equity		112,348			117,666			119,759			118,428			114,628			112,348			114,628
Goodwill and intangibles		23,687			23,710			23,732			23,753			23,770			23,687			23,770
Tangible equity		88,661			93,956			96,027			94,675			90,858			88,661			90,858
Mortgage servicing portfolio		1,367,209			1,353,904			1,344,158			1,352,016			1,362,666			1,367,209			1,362,666
Wealth/Brokerage assets under care		478,236			499,255			518,009			507,093			480,947			478,236			480,947
Total assets under care		3,171,919			3,194,594			3,203,460			3,194,742			3,146,990			3,171,919			3,146,990
Full-time equivalent employees		252			253			255			268			271			252			271
Period end common shares outstanding		6,773			6,803			6,894			6,935			6,950			6,773			6,950
Market capitalization (all)		91,437			85,857			97,419			117,556			117,113			91,437			117,113

AVERAGE BALANCES
Total assets		1,339,870			1,346,010			1,335,056			1,314,419			1,302,297			1,344,467			1,319,668
Total earning assets		1,239,145			1,248,813			1,232,018			1,211,674			1,209,958			1,243,094			1,231,865
Total loans		989,089			988,348			970,813			937,898			909,909			982,817			871,340
Deposits		1,095,414			1,100,344			1,098,935			1,094,491			1,085,821			1,098,593			1,109,345
Stockholders equity		123,070			122,886			117,071			116,114			122,738			125,580			130,069
Goodwill and intangibles		23,698			23,721			23,743			23,761			23,778			23,720			23,791
Tangible equity		99,372			99,165			93,328			92,353			98,960			101,860			106,278
Average basic shares outstanding		6,791			6,847			6,933			6,945			6,968			6,857			7,026
Average diluted shares outstanding		6,878			6,910			7,008			7,021			7,033			6,944			7,098

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three Months Ended Sep. 30, 2023 and 2022

($ in thousands)	Three Months Ended Sep. 30, 2023								Three Months Ended Sep. 30, 2022
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Taxable securities/cash	$	243,261		$	1,507		2.48	%	$	291,712		$	1,536		2.11	%
Nontaxable securities		6,795			39		2.30	%		8,337			52		2.49	%
Loans, net		989,089			13,250		5.36	%		909,909			10,176		4.47	%
Total earning assets		1,239,145			14,796		4.78	%		1,209,958			11,764		3.89	%
Cash and due from banks		4,022								6,782
Allowance for loan losses		(15,791	)							(13,802	)
Premises and equipment		22,120								23,762
Other assets		90,374								75,597
Total assets	$	1,339,870							$	1,302,297

Liabilities
Savings, MMDA and interest bearing demand	$	620,092		$	2,232		1.44	%	$	681,209		$	542		0.32	%
Time deposits		244,289			1,962		3.21	%		155,979			310		0.79	%
Repurchase agreements & other		16,319			16		0.39	%		20,160			8		0.16	%
Advances from Federal Home Loan Bank		55,073			666		4.84	%		26,739			180		2.69	%
Trust preferred securities		10,310			189		7.33	%		10,310			99		3.84	%
Subordinated debt		19,622			195		3.98	%		19,576			195		3.98	%
Total interest bearing liabilities		965,705			5,260		2.18	%		913,973			1,334		0.58	%
Non interest bearing demand		231,033			-					248,633			-
Total funding		1,196,738					1.76	%		1,162,606					0.46	%
Other liabilities		20,062								16,952
Total liabilities		1,216,800								1,179,558
Equity		123,070								122,738

Total liabilities and equity	$	1,339,870							$	1,302,296

Net interest income				$	9,536							$	10,430

Net interest income as a percent of average interest-earning assets - GAAP measure							3.08	%							3.45	%

Net interest income as a percent of average interest-earning assets - non GAAP							3.09	%							3.46	%
- Computed on a fully tax equivalent (FTE) basis

	Nine Months Ended Sep. 30, 2023								Nine Months Ended Sep. 30, 2022
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Taxable securities/cash	$	252,908		$	4,566		2.41	%	$	352,405		$	4,239		1.60	%
Nontaxable securities		7,369			132		2.39	%		8,120			151		2.48	%
Loans, net		982,817			38,328		5.20	%		871,340			27,242		4.17	%
Total earning assets		1,243,094			43,026		4.61	%		1,231,865			31,632		3.42	%
Cash and due from banks		4,020								7,331
Allowance for loan losses		(15,374	)							(13,804	)
Premises and equipment		22,500								24,265
Other assets		90,227								70,011
Total assets	$	1,344,467							$	1,319,668

Liabilities
Savings, MMDA and interest bearing demand	$	627,074		$	5,367		1.14	%	$	709,033		$	1,293		0.24	%
Time deposits		233,054			4,943		2.83	%		152,230			744		0.65	%
Repurchase agreements & Other		16,576			35		0.28	%		21,298			32		0.20	%
Advances from Federal Home Loan Bank		53,936			1,883		4.65	%		12,154			257		2.82	%
Trust preferred securities		10,310			525		6.79	%		10,310			223		2.88	%
Subordinated debt		19,610			584		3.97	%		19,564			584		3.98	%
Total interest bearing liabilities		960,560			13,337		1.85	%		924,589			3,132		0.45	%
Non interest bearing demand		238,465					1.48	%		248,082					0.36	%
Total funding		1,199,025								1,172,671
Other liabilities		19,862								16,928
Total liabilities		1,218,887								1,189,599
Equity		125,580								130,069

Total liabilities and equity	$	1,344,467							$	1,319,668

Net interest income				$	29,689							$	28,500

Net interest income as a percent of average interest-earning assets - GAAP measure							3.18	%							3.08	%

Net interest income as a percent of average interest-earning assets - non GAAP							3.20	%							3.09	%
- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended						Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 30, 2023			Sep. 30, 2022			Sep. 30, 2023			Sep. 30, 2022

Total Operating Revenue	$	13,699		$	14,473		$	41,879		$	43,017
Adjustment to (deduct)/add OMSR recapture/impairment *		78			(65	)		39			(1,193	)
Adjusted Total Operating Revenue		13,777			14,408			41,918			41,824

Income before Income Taxes		3,224			4,088			9,897			10,971
Adjustment for OMSR *		78			(65	)		39			(1,193	)
Adjusted Income before Income Taxes		3,302			4,023			9,936			9,778

Provision for Income Taxes		537			746			1,685			1,983
Adjustment for OMSR **		16			(14	)		8			(251	)
Adjusted Provision for Income Taxes		553			732			1,693			1,733

Net Income		2,687			3,342			8,212			8,988
Adjustment for OMSR *		62			(51	)		31			(942	)
Adjusted Net Income		2,749			3,291			8,243			8,046

Diluted Earnings per Share		0.39			0.47			1.18			1.27
Adjustment for OMSR *		0.01			(0.00	)		0.00			(0.13	)
Adjusted Diluted Earnings per Share	$	0.40		$	0.47		$	1.19		$	1.13

Return on Average Assets		0.80	%		1.03	%		0.81	%		0.91	%
Adjustment for OMSR *		0.02	%		-0.02	%		0.00	%		-0.07	%
Adjusted Return on Average Assets		0.82	%		1.01	%		0.82	%		0.84	%

*	valuation adjustment to the Company’s mortgage servicing rights

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

Cover	Oct. 30, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 30, 2023
Entity File Number	0-13507
Entity Registrant Name	SB FINANCIAL GROUP, INC
Entity Central Index Key	0000767405
Entity Tax Identification Number	34-1395608
Entity Incorporation, State or Country Code	OH
Entity Address, Address Line One	401 Clinton Street
Entity Address, City or Town	Defiance
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43512
City Area Code	419
Local Phone Number	783-8950
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, No Par Value 6,808,615 Outstanding at November 2, 2023
Trading Symbol	SBFG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false