SBFG SB Finanical Group Inc

 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 fourth quarter ended December 31, 2024.

Fourth Quarter 2024 Highlights compared to the fourth quarter of the prior year:

• Net income of $3.6 million, which is down 6.4 percent with Diluted Earnings Per Share (“EPS”) of $0.55. When adjusted for Originated Mortgage Servings Rights (“OMSR”) and the Visa B share sale in the prior year, diluted EPS would be up $0.07 or 16.7 percent.
• Interest income of $16.8 million increased by 11.4 percent from $15.1 million reported in the prior year.
• Loan growth of $46.5 million, or 4.7 percent from the prior-year quarter, and marks the third consecutive quarter of sequential expanding loan growth, year over year.
• Tangible book value per shared ended the quarter at $16.00 up $1.02 per share or 6.8 percent from the prior year.

Twelve Months Ended December 31, 2024, highlights Over the Prior Year include:

• Net income decreased slightly to $11.5 million, a 5.2 percent decline from the prior year's $12.1 million, and diluted EPS was $1.72, down 1.9 percent from $1.75. Adjusted EPS was up 4.2 percent compared to the prior year.
• Deposits increased by $82.4 million, or 7.7 percent to $1.15 billion.
• Total interest income of $64.3 million increased by $6.2 million, or 10.7 percent compared to the $58.2 million reported for the previous twelve months, while net interest income improved slightly to $39.9 million, or 1.7 percent.

Earnings Highlights	Three Months Ended									Twelve Months Ended
($ in thousands, except per share & ratios)	Dec. 2024			Dec. 2023			% Change			Dec. 2024			Dec. 2023			% Change
Operating revenue	$	15,454		$	15,115		2.2	%		$	56,939		$	56,994		-0.1	%
Interest income	16,847			15,126			11.4	%		64,349			58,152			10.7	%
Interest expense	5,950			5,542			7.4	%		24,427			18,879			29.4	%
Net interest income	10,897			9,584			13.7	%		39,922			39,273			1.7	%
Provision (recovery) for credit losses	(76		)	(74		)	-2.7	%		124			315			-60.6	%
Noninterest income	4,557			5,531			-17.6	%		17,017			17,721			-4.0	%
Noninterest expense	11,003			10,369			6.1	%		42,959			41,962			2.4	%
Net income	3,635			3,883			-6.4	%		11,470			12,095			-5.2	%
Earnings per diluted share	0.55			0.57			-3.5	%		1.72			1.75			-1.7	%
Return on average assets	1.04		%	1.17		%	-11.1	%		0.84		%	0.91		%	-7.7	%
Return on average equity	11.13		%	13.23		%	-15.9	%		9.19		%	10.22		%	-10.1	%

“Our fourth-quarter and full-year 2024 results underscore our ability to navigate challenges while delivering growth in key areas,” said Mark A. Klein, Chairman, President, and CEO. “Net income for the quarter was $3.6 million, a 54.4 percent increase from the linked quarter. Diluted EPS for the quarter was $0.55, with full-year diluted EPS reaching $1.72.

"In addition to our financial results, we are pleased that we were able to close on the Marblehead acquisition earlier this month. Their presence will add substantial liquidity via their low-cost deposit base and will expand our market presence in Northern Ohio.”

Interest income for the quarter grew by 11.4 percent to $16.8 million, driven by strong loan performance. Loans increased by $46.5 million, compared to the prior year, and by $16.8 million from the linked quarter. Deposits also rose by $82.4 million, or 7.7 percent, to $1.15 billion, a testament to the trust our clients place in us. Tangible book value per share climbed by 6.8 percent to $16.00, underscoring our commitment to delivering shareholder value.

We achieved $64.3 million in total interest income for the year, a 10.7 percent increase over 2023, which partially offset a slight decline in net income to $11.5 million. These results highlight our disciplined approach to growth, operational efficiency, and long-term value creation for our stakeholders. As we move into 2025, we remain focused on leveraging our momentum and strengthening our financial position.”

RESULTS OF OPERATIONS

Consolidated Revenue

In the fourth quarter of 2024, total operating revenue increased to $15.5 million, a 2.2 percent rise from $15.1 million in the prior year and an 8.0 percent increase from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $10.9 million, a strong 13.7 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.5 million to $15.0 million. However, rising deposit costs contributed to a 7.4 percent increase in total interest expense, partially offsetting the gains in interest income. Despite this, the net interest margin expanded by 24 basis points year-over-year to 3.35 percent, reflecting the continued strength of our interest-earning assets and disciplined funding cost management.

Noninterest income for the quarter declined by 17.6 percent year-over-year to $4.6 million due to the Visa B share sale recorded in the prior year quarter. However, it improved by 10.5 percent compared to the linked quarter, highlighting recovery in key areas. Gains on the sale of mortgage loans and OMSR increased by $448,000 year over year to $1.2 million, while wealth management fees and title insurance revenue rose by $78,000 and $100,000, respectively. Moving forward, we remain focused on maintaining a balanced approach to driving revenue growth and managing costs to deliver consistent shareholder value.

Mortgage Loan Business

"Our mortgage banking operations delivered another quarter of strong results, reflecting our strategic focus on origination growth, portfolio expansion, and servicing efficiency. Mortgage originations surged to $72.5 million, an impressive year-over-year increase of $33.0 million, or 83.3 percent,” continued Mr. Klein. “The Indianapolis team contributed 43 percent of our volume this quarter and our newest market, Cincinnati, had volume of $2.3 million in the quarter. Correspondingly, mortgage sales rose to $62.3 million, marking an 86.7 percent increase compared to the same period, last year.”

The mortgage servicing portfolio expanded to $1.43 billion, achieving a year-over-year increase of $60.7 million, or 4.4 percent, further strengthening our recurring revenue streams, and highlighting the effectiveness of our servicing retention strategies.

Net mortgage banking revenue for the quarter reached $2.0 million, up $703,000 from the prior year quarter, and for the year was $6.7 million up 18.1 percent compared to 2023. Gains on the sale of mortgages remained a key revenue driver, increasing by $448,000 year-over-year to $1.2 million. Loan servicing fees added $886,000 to revenue, reflecting an increase of $31,000 from the previous year quarter. Notably, the OMSR net valuation adjustment for full year 2024 was a positive $42,000 compared to a negative $51,000 for the full year of 2023.

Mortgage Banking
($ in thousands)	Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Prior YearGrowth
Mortgage originations	$	72,534		$	70,715		$	75,110		$	42,912		$	39,566		$	32,968
Mortgage sales	62,301			61,271			55,835			36,623			33,362			28,939
Mortgage servicing portfolio	1,427,318			1,406,273			1,389,805			1,371,713			1,366,667			60,651
Mortgage servicing rights	14,868			14,357			14,548			14,191			13,906			962
Revenue
Loan servicing fees	886			874			862			855			855			31
OMSR amortization	(358		)	(370		)	(335		)	(273		)	(282		)	(76		)
Net administrative fees	528			504			527			582			573			(45		)
OMSR valuation adjustment	288			(465		)	38			181			(12		)	300
Net loan servicing fees	816			39			565			763			561			255
Gain on sale of mortgages	1,196			1,311			1,277			781			747			449
Mortgage banking revenue, net	$	2,012		$	1,350		$	1,842		$	1,544		$	1,308		$	704

Noninterest Income and Noninterest Expense

"Noninterest income for the fourth quarter of 2024 totaled $4.6 million, with linked quarter noninterest income increasing by $434,000 or 10.5 percent, primarily due to increased revenue in net mortgage loan servicing fees and higher wealth management fees. Compared to the prior year quarter, wealth management fees grew modestly by $78,000 year over year, and title insurance revenue added $100,000, reflecting our ability to deliver consistent performance across core revenue categories,” Mr. Klein noted.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Prior YearGrowth
Noninterest Income (NII)	$	4,557		$	4,123		$	4,386		$	3,951		$	5,531		$	(974	)
NII / Total Revenue	29.5		%	28.8		%	31.5		%	30.1		%	36.6		%	-7.1		%
NII / Average Assets	1.3		%	1.2		%	1.3		%	1.2		%	1.7		%	-0.4		%
Total Revenue Growth	2.2		%	4.5		%	-0.6		%	-6.1		%	3.4		%	-1.2		%
Noninterest Expense (NIE)	$	11,003		$	11,003		$	10,671		$	10,282		$	10,369		$	634
Efficiency Ratio	71.1		%	76.8		%	75.9		%	78.2		%	68.4		%	2.7		%
NIE / Average Assets	3.2		%	3.2		%	3.2		%	3.1		%	3.1		%	0.1		%
Net Noninterest Expense/Avg. Assets	-1.9		%	-2.0		%	-1.9		%	-1.9		%	-1.4		%	-0.5		%
Total Expense Growth	6.1		%	5.0		%	3.2		%	-4.6		%	1.0		%	5.1		%

Noninterest expense for the fourth quarter of 2024 was unchanged at $11.0 million compared to the third quarter but increased by $634,000, or 6.1 percent, year-over-year. The year-over-year increase was primarily driven by a $533,000 increase in salaries and employee benefits, reflecting investments in talent to support operational growth and increased business activity.

Noninterest expense increases were partially offset by reductions in discretionary expense categories, including a $61,000 decrease in state, local, and other taxes, as well as a $44,000 reduction in net occupancy expense. Postage and delivery expenses also saw a modest decline of $51,000.

“Our efficiency ratio improved to 71.09 percent in the fourth quarter of 2024 from 76.78 percent in the linked quarter, highlighting our ability to manage costs while investing strategically in growth areas. With a year-end headcount of 252 full-time equivalent employees, we remain focused on balancing growth with operational efficiency” stated Mr. Klein.

Balance Sheet

As of December 31, 2024, SB Financial reported total assets of $1.38 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.05 billion, marking a $46.5 million or 4.7 percent increase year over year. The strategic reallocation of liquidity contributed to this expansion, as evidenced by a decline in cash and available-for-sale securities, demonstrated the Company’s focus on maximizing returns while maintaining a solid financial position.

Total deposits increased to $1.15 billion, growing $82.4 million or 7.7 percent year over year, reflecting SB Financial’s strength in deposit gathering and customer engagement. Shareholders’ equity ended the year at $127.5 million, representing a $3.2 million increase from the prior year. This growth reflects management's commitment to enhancing shareholder value and the Company’s disciplined approach to capital management.

During the fourth quarter, SB Financial repurchased 130,465 shares, continuing its active buyback program. This reflects the Company's dedication to returning value to shareholders through dividends and share repurchases while retaining sufficient capital to fund its long-term growth strategies.

"As we conclude 2024, our balance sheet strength and strategic allocation of resources highlight our unwavering commitment to disciplined growth," said Mr. Klein, Chairman, President, and CEO. "Despite a challenging rate environment, we achieved our third consecutive quarter of loan growth, with balances increasing by $46.5 million from the previous year. This performance underscores our ability to deepen client relationships while navigating competitive dynamics. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, positioning us to capitalize on emerging opportunities while maintaining operational excellence. Looking ahead, we remain focused on driving shareholder value and sustaining robust financial performance in the evolving economic landscape."

Loan Balances
($ in thousands, except ratios)	Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			AnnualGrowth
Commercial	$	125,014		$	123,821		$	123,287		$	120,016		$	126,716		$	(1,952	)
% of Total	11.9		%	12.0		%	12.3		%	12.1		%	12.7		%	-1.5		%
Commercial RE	479,573			459,449			434,967			429,362			424,041			55,532
% of Total	45.8		%	44.6		%	43.3		%	43.3		%	42.4		%	13.1		%
Agriculture	64,680			64,887			64,329			62,365			65,659			(979		)
% of Total	6.2		%	6.3		%	6.4		%	6.3		%	6.6		%	-1.5		%
Residential RE	308,378			314,010			316,233			314,668			318,123			(9,745		)
% of Total	29.5		%	30.5		%	31.5		%	31.7		%	31.8		%	-3.1		%
Consumer & Other	69,340			67,788			66,574			65,141			65,673			3,667
% of Total	6.6		%	6.6		%	6.6		%	6.6		%	6.6		%	5.6		%
Total Loans	$	1,046,735		$	1,029,955		$	1,005,390		$	991,552		$	1,000,212		$	46,523
Total Growth Percentage																4.7		%
Deposit Balances
($ in thousands, except ratios)	Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			AnnualGrowth
Non-Int DDA	$	232,155		$	222,425		$	208,244		$	219,395		$	228,713		$	3,442
% of Total	20.1		%	19.2		%	18.7		%	19.7		%	21.4		%	1.5		%
Interest DDA	201,085			202,097			190,857			169,171			166,413			34,672
% of Total	17.4		%	17.4		%	17.1		%	15.2		%	15.5		%	20.8		%
Savings	237,987			241,761			231,855			244,157			216,965			21,022
% of Total	20.6		%	20.8		%	20.8		%	21.9		%	20.3		%	9.7		%
Money Market	222,161			228,182			225,650			221,362			202,605			19,556
% of Total	19.3		%	19.7		%	20.2		%	19.9		%	18.9		%	9.7		%
Time Deposits	259,217			265,068			258,582			258,257			255,509			3,708
% of Total	22.5		%	22.9		%	23.2		%	23.2		%	23.9		%	1.5		%
Total Deposits	$	1,152,605		$	1,159,533		$	1,115,188		$	1,112,342		$	1,070,205		$	82,400
Total Growth Percentage																7.7		%

Asset Quality

As of December 31, 2024, SB Financial Group maintained strong asset quality metrics. Nonperforming assets totaled $5.5 million, representing 0.40 percent of total assets, an increase of $2.2 million compared to the $3.3 million or 0.25 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we expect to resolve favorably by mid-year 2025.

The allowance for credit losses remained robust at 1.44 percent of total loans, providing 273.7 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of the institution's conservative approach to risk management. This strength underscores SB Financial's commitment to disciplined credit administration amidst evolving economic conditions. The net loan charge-offs to average loans ratio remained modest at 7 basis points and for the full year just 2 basis points, reflecting effective collateral management and a strong credit culture.

"Our asset quality metrics demonstrate resilience and our commitment to disciplined risk management," stated Mark Klein, Chairman, President, and CEO. "While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and low charge-off levels underscore the performance of our loan portfolio. We remain focused on preserving the integrity of our credit processes while positioning our balance sheet for long-term growth." This balanced approach reflects SB Financial's efforts to maintain top-tier asset quality ratios, support lending growth, and ensure financial stability for the future.

Nonperforming Assets																Annual
($ in thousands, except ratios)	Dec. 2024			Sep. 2024			Jun. 2024			Mar. 2024			Dec. 2023			Change
Commercial & Agriculture	$	2,927		$	2,899		$	2,781		$	897		$	748		$	2,179
% of Total Com./Ag. loans	1.55		%	1.54		%	1.48		%	0.49		%	0.39		%	291.3		%
Commercial RE	807			813			475			49			168			639
% of Total CRE loans	0.17		%	0.18		%	0.11		%	0.01		%	0.04		%	380.4		%
Residential RE	1,539			1,536			1,247			1,295			1,690			(151		)
% of Total Res. RE loans	0.50		%	0.49		%	0.39		%	0.41		%	0.53		%	-8.9		%
Consumer & Other	243			270			231			193			212			31
% of Total Con./Oth. loans	0.35		%	0.40		%	0.35		%	0.30		%	0.32		%	14.6		%
Total Nonaccruing Loans	5,516			5,518			4,734			2,434			2,818			2,698
% of Total loans	0.53		%	0.54		%	0.47		%	0.25		%	0.28		%	95.7		%
Foreclosed Assets and Other Assets	-			-			510			510			511			(511		)
Total Change (%)																-100.0		%
Total Nonperforming Assets	$	5,516		$	5,518		$	5,244		$	2,944		$	3,329		$	2,187
% of Total assets	0.40		%	0.40		%	0.39		%	0.22		%	0.25		%	65.70		%

Webcast and Conference Call

The Company will hold the fourth quarter 2024 earnings conference call and webcast on January 24, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 25 offices: 24 in ten Ohio counties and one in Fort Wayne, Indiana, and 25 ATMs. State Bank has seven 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”.

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. KleinChairman, President and Chief Executive OfficerMark.Klein@YourStateBank.com

Anthony V. CosentinoExecutive Vice President and Chief Financial OfficerTony.Cosentino@YourStateBank.com

SB FINANCIAL GROUP, INC.CONSOLIDATED BALANCE SHEETS - (Unaudited)
				December				September				June				March				December
			($ in thousands)	2024				2024				2024				2024				2023
ASSETS
	Cash and due from banks			$	25,928			$	49,348			$	21,983			$	26,602			$	22,965
	Interest bearing time deposits			1,565				1,706				2,417				2,417				1,535
	Available-for-sale securities			201,587				211,511				207,856				213,239				219,708
	Loans held for sale			6,770				8,927				7,864				4,730				2,525
	Loans, net of unearned income			1,046,735				1,029,955				1,005,390				991,552				1,000,212
	Allowance for credit losses			(15,096		)		(15,278		)		(15,612		)		(15,643		)		(15,786		)
	Premises and equipment, net			20,456				20,715				20,860				20,985				21,378
	Federal Reserve and FHLB Stock, at cost			5,223				5,223				5,204				6,512				7,279
	Foreclosed assets and other assets			-				-				510				510				511
	Interest receivable			4,908				4,842				4,818				3,706				4,657
	Goodwill			23,239				23,239				23,239				23,239				23,239
	Cash value of life insurance			30,685				30,488				30,294				30,103				29,121
	Mortgage servicing rights			14,868				14,357				14,548				14,191				13,906
	Other assets			12,649				8,916				12,815				13,869				11,999
			Total assets	$	1,379,517			$	1,393,949			$	1,342,186			$	1,336,012			$	1,343,249
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand		$	232,155			$	222,425			$	208,244			$	219,395			$	228,713
		Interest bearing demand		201,085				202,097				190,857				169,171				166,413
		Savings		237,987				241,761				231,855				244,157				216,965
		Money market		222,161				228,182				225,650				221,362				202,605
		Time deposits		259,217				265,068				258,582				258,257				255,509
			Total deposits	1,152,605				1,159,533				1,115,188				1,112,342				1,070,205
	Short-term borrowings			10,585				15,240				15,178				12,916				13,387
	Federal Home Loan Bank advances			35,000				35,000				35,000				35,000				83,600
	Trust preferred securities			10,310				10,310				10,310				10,310				10,310
	Subordinated debt net of issuance costs			19,690				19,678				19,666				19,654				19,642
	Interest payable			2,351				3,374				2,944				2,772				2,443
	Other liabilities			21,468				17,973				18,421				19,295				19,320
			Total liabilities	1,252,009				1,261,108				1,216,707				1,212,289				1,218,907
	Shareholders' Equity
		Common stock		61,319				61,319				61,319				61,319				61,319
		Additional paid-in capital		15,194				15,090				15,195				14,978				15,124
		Retained earnings		116,186				113,515				112,104				109,938				108,486
		Accumulated other comprehensive loss		(30,234		)		(24,870		)		(31,801		)		(31,547		)		(29,831		)
		Treasury stock		(34,957		)		(32,213		)		(31,338		)		(30,965		)		(30,756		)
			Total shareholders' equity	127,508				132,841				125,479				123,723				124,342
			Total liabilities and shareholders' equity	$	1,379,517			$	1,393,949			$	1,342,186			$	1,336,012			$	1,343,249

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			2024				2024			2024			2024			2023				2024			2023
	Loans
	Taxable		$	14,920			$	14,513		$	13,883		$	13,547		$	13,438			$	56,863		$	51,407
	Tax exempt		122				127			124			123			124				496			483
	Securities
	Taxable		1,770				1,871			1,610			1,593			1,526				6,844			6,092
	Tax exempt		35				37			37			37			38				146			170
		Total interest income	16,847				16,548			15,654			15,300			15,126				64,349			58,152
Interest expense
	Deposits		5,169				5,568			5,208			5,090			4,398				21,035			14,708
	Repurchase agreements & other		41				43			36			34			39				154			74
	Federal Home Loan Bank advances		369				369			370			613			720				1,721			2,603
	Trust preferred securities		177				187			187			188			191				739			716
	Subordinated debt		194				195			194			195			194				778			778
		Total interest expense	5,950				6,362			5,995			6,120			5,542				24,427			18,879
Net interest income			10,897				10,186			9,659			9,180			9,584				39,922			39,273
	Provision for credit losses		(76		)		200			-			-			(74		)		124			315
Net interest income after provision
for loan losses			10,973				9,986			9,659			9,180			9,658				39,798			38,958
Noninterest income
	Wealth management fees		916				882			848			865			838				3,511			3,532
	Customer service fees		842				870			875			880			844				3,467			3,403
	Gain on sale of mtg. loans & OMSR		1,195				1,311			1,277			781			747				4,564			3,609
	Mortgage loan servicing fees, net		816				39			565			763			561				2,183			2,101
	Gain on sale of non-mortgage loans		10				20			105			10			177				145			429
	Title insurance revenue		478				485			406			266			378				1,635			1,635
	Net gain on sales of securities		-				-			-			-			1,453				-			1,453
	Gain (loss) on sale of assets		-				200			-			-			16				200			20
	Other		299				316			310			386			517				1,311			1,539
		Total noninterest income	4,557				4,123			4,386			3,951			5,531				17,017			17,721
Noninterest expense
	Salaries and employee benefits		6,185				6,057			6,009			5,352			5,652				23,603			22,777
	Net occupancy expense		702				706			707			769			746				2,884			3,096
	Equipment expense		1,127				1,069			1,060			1,077			1,027				4,333			4,078
	Data processing fees		821				758			727			769			680				3,075			2,659
	Professional fees		895				659			615			758			926				2,927			3,024
	Marketing expense		207				241			176			197			182				821			782
	Telephone and communication expense		136				128			156			105			132				525			501
	Postage and delivery expense		116				145			89			97			167				447			432
	State, local and other taxes		224				208			230			245			285				907			949
	Employee expense		168				228			159			178			146				733			631
	Other expenses		422				804			743			735			426				2,704			3,033
		Total noninterest expense	11,003				11,003			10,671			10,282			10,369				42,959			41,962
Income before income tax expense			4,527				3,106			3,374			2,849			4,820				13,856			14,717
	Income tax expense		892				752			261			481			937				2,386			2,622
Net income			$	3,635			$	2,354		$	3,113		$	2,368		$	3,883			$	11,470		$	12,095
Common share data:
	Basic earnings per common share		$	0.55			$	0.35		$	0.47		$	0.35		$	0.58			$	1.72		$	1.77
	Diluted earnings per common share		$	0.55			$	0.35		$	0.47		$	0.35		$	0.57			$	1.72		$	1.75
Average shares outstanding (in thousands):
	Basic:		6,575				6,660			6,692			6,715			6,748				6,660			6,829
	Diluted:		6,599				6,675			6,700			6,723			6,851				6,680			6,917

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		2024				2024				2024				2024				2023				2024				2023
Net interest income		$	10,897			$	10,186			$	9,659			$	9,180			$	9,584			$	39,922			$	39,273
Tax-equivalent adjustment		42				44				43				43				43				171				174
Tax-equivalent net interest income		10,939				10,230				9,702				9,223				9,627				40,093				39,447
Provision for credit loss		(76		)		200				-				-				(74		)		124				315
Noninterest income		4,557				4,123				4,386				3,951				5,531				17,017				17,721
Total operating revenue		15,454				14,309				14,045				13,131				15,115				56,939				56,994
Noninterest expense		11,003				11,003				10,671				10,282				10,369				42,959				41,962
Pre-tax pre-provision income		4,451				3,306				3,374				2,849				4,746				13,980				15,032
Net income		3,635				2,354				3,113				2,368				3,883				11,470				12,095
PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.55				0.35				0.47				0.35				0.58				1.72				1.77
Diluted earnings per share		0.55				0.35				0.47				0.35				0.57				1.72				1.75
Common dividends		0.145				0.140				0.140				0.135				0.135				0.560				0.520
Book value per common share		19.64				20.05				18.80				18.46				18.50				19.64				18.50
Tangible book value per common share (TBV)		16.00				16.49				15.26				14.93				14.98				16.00				14.98
Market price per common share		20.91				20.56				14.00				13.78				15.35				20.91				15.35
Market price to TBV		130.7		%		124.7		%		91.8		%		92.3		%		102.5		%		130.7		%		102.5		%
Market price to trailing 12 month EPS		12.1				11.8				7.9				7.9				8.8				12.1				8.8
PERFORMANCE RATIOS:
Return on average assets (ROAA)		1.04		%		0.68		%		0.93		%		0.71		%		1.17		%		0.84		%		0.91		%
Pre-tax pre-provision ROAA		1.28		%		0.96		%		1.01		%		0.85		%		1.43		%		1.10		%		1.21		%
Return on average equity (ROE)		11.13		%		7.32		%		10.16		%		7.70		%		13.23		%		9.19		%		10.22		%
Return on average tangible equity		13.58		%		8.97		%		12.59		%		9.53		%		16.57		%		11.34		%		12.78		%
Efficiency ratio		71.09		%		76.78		%		75.86		%		78.17		%		68.44		%		75.33		%		73.47		%
Earning asset yield		5.18		%		5.16		%		5.02		%		4.97		%		4.89		%		5.08		%		4.67		%
Cost of interest bearing liabilities		2.36		%		2.53		%		2.47		%		2.55		%		2.33		%		2.48		%		1.97		%
Net interest margin		3.35		%		3.17		%		3.10		%		2.98		%		3.10		%		3.15		%		3.15		%
Tax equivalent effect		0.01		%		0.02		%		0.01		%		0.01		%		0.01		%		0.01		%		0.01		%
Net interest margin, tax equivalent		3.36		%		3.19		%		3.11		%		2.99		%		3.11		%		3.16		%		3.16		%
Non interest income/Average assets		1.31		%		1.20		%		1.31		%		1.19		%		1.67		%		1.25		%		1.33		%
Non interest expense/Average assets		3.15		%		3.20		%		3.18		%		3.08		%		3.12		%		3.16		%		3.14		%
Net noninterest expense/Average assets		-1.85		%		-2.00		%		-1.87		%		-1.90		%		-1.46		%		-1.91		%		-1.81		%
ASSET QUALITY RATIOS:
Gross charge-offs		195				29				-				66				5				290				118
Recoveries		13				2				16				9				1				40				26
Net charge-offs		182				27				(16		)		57				4				250				92
Nonperforming loans/Total loans		0.53		%		0.54		%		0.47		%		0.25		%		0.28		%		0.53		%		0.28		%
Nonperforming assets/Loans & OREO		0.53		%		0.54		%		0.52		%		0.30		%		0.33		%		0.53		%		0.33		%
Nonperforming assets/Total assets		0.40		%		0.40		%		0.39		%		0.22		%		0.25		%		0.40		%		0.25		%
Allowance for credit loss/Nonperforming loans		273.68		%		276.83		%		329.78		%		642.69		%		560.18		%		273.68		%		560.18		%
Allowance for credit loss/Total loans		1.44		%		1.48		%		1.55		%		1.58		%		1.58		%		1.44		%		1.58		%
Net loan charge-offs/Average loans (ann.)		0.07		%		0.01		%		(0.01		%)		0.02		%		0.00		%		0.02		%		0.01		%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		90.81		%		88.82		%		90.15		%		89.14		%		93.46		%		90.81		%		93.46		%
Equity/ Assets		9.24		%		9.53		%		9.35		%		9.26		%		9.26		%		9.24		%		9.26		%
Tangible equity/Tangible assets		7.66		%		7.97		%		7.72		%		7.63		%		7.63		%		7.66		%		7.63		%
Common equity tier 1 ratio (Bank)		13.64		%		13.19		%		13.98		%		13.84		%		13.42		%		13.64		%		13.42		%
END OF PERIOD BALANCES
Total assets		1,379,517				1,393,949				1,342,186				1,336,012				1,343,249				1,379,517				1,343,249
Total loans		1,046,735				1,029,955				1,005,390				991,552				1,000,212				1,046,735				1,000,212
Deposits		1,152,605				1,159,533				1,115,188				1,112,342				1,070,205				1,152,605				1,070,205
Shareholders equity		127,508				132,841				125,479				123,723				124,342				127,508				124,342
Goodwill and intangibles		23,597				23,613				23,630				23,646				23,662				23,597				23,662
Tangible equity		103,911				109,228				101,849				100,077				100,680				103,911				100,680
Mortgage servicing portfolio		1,427,318				1,406,273				1,389,805				1,371,713				1,366,667				1,427,318				1,366,667
Wealth/Brokerage assets under care		547,697				557,724				525,713				525,517				501,829				547,697				501,829
Total assets under care		3,354,532				3,357,946				3,257,704				3,233,242				3,211,745				3,354,532				3,211,745
Full-time equivalent employees		252				248				249				245				251				252				251
Period end common shares outstanding		6,494				6,624				6,676				6,702				6,720				6,494				6,720
Market capitalization (all)		135,780				136,189				93,458				92,359				103,147				135,780				103,147
AVERAGE BALANCES
Total assets		1,395,473				1,376,849				1,342,847				1,333,236				1,327,415				1,361,274				1,334,644
Total earning assets		1,301,872				1,283,407				1,246,099				1,230,736				1,236,165				1,267,794				1,246,531
Total loans		1,040,580				1,018,262				1,005,018				993,310				992,337				1,014,375				985,217
Deposits		1,163,531				1,145,964				1,120,367				1,091,803				1,084,939				1,130,973				1,094,547
Shareholders equity		130,647				128,608				122,510				123,058				117,397				124,742				118,315
Goodwill and intangibles		23,605				23,621				23,638				23,654				23,675				23,629				23,709
Tangible equity		107,042				104,987				98,872				99,404				93,722				101,113				94,606
Average basic shares outstanding		6,575				6,660				6,692				6,715				6,748				6,660				6,829
Average diluted shares outstanding		6,599				6,675				6,700				6,723				6,851				6,680				6,917

SB FINANCIAL GROUP, INC.Rate Volume Analysis - (Unaudited)For the Three and Twelve Months Ended Dec. 31, 2024 and 2023
	($ in thousands)	Three Months Ended Dec. 31, 2024									Three Months Ended Dec. 31, 2023
		Average					Average				Average					Average
Assets		Balance			Interest		Rate				Balance			Interest		Rate
	Taxable securities/cash	$	254,989		$	1,770	2.78	%			$	237,203		$	1,526	2.57	%
	Nontaxable securities	6,303			35		2.22	%			6,625			38		2.29	%
	Loans, net	1,040,580			15,042		5.78	%			992,337			13,562		5.47	%
	Total earning assets	1,301,872			16,847		5.18	%			1,236,165			15,126		4.89	%
	Cash and due from banks	4,262									4,077
	Allowance for loan losses	(15,070		)							(15,787		)
	Premises and equipment	20,642									22,205
	Other assets	83,767									80,755
	Total assets	$	1,395,473								$	1,327,415
Liabilities
	Savings, MMDA and interest bearing demand	$	669,987		$	2,803	1.67	%			$	601,034		$	2,232	1.49	%
	Time deposits	259,093			2,366		3.65	%			247,382			2,166		3.50	%
	Repurchase agreements & other	13,229			41		1.24	%			13,359			39		1.17	%
	Advances from Federal Home Loan Bank	35,000			369		4.22	%			58,330			720		4.94	%
	Trust preferred securities	10,310			177		6.87	%			10,310			191		7.41	%
	Subordinated debt	19,674			194		3.94	%			19,634			194		3.95	%
	Total interest bearing liabilities	1,007,293			5,950		2.36	%			950,049			5,542		2.33	%
	Non interest bearing demand	234,451			-						236,523			-
	Total funding	1,241,744					1.92	%			1,186,572					1.87	%
	Other liabilities	23,082									23,446
	Total liabilities	1,264,826									1,210,018
	Equity	130,647									117,397
	Total liabilities and equity	$	1,395,473								$	1,327,415		-
	Net interest income				$	10,897								$	9,584
	Net interest income as a percent of average interest-earning assets - GAAP measure						3.35	%								3.10	%
	Net interest income as a percent of average interest-earning assets - non GAAP						3.36	%								3.11	%
	- Computed on a fully tax equivalent (FTE) basis
		Twelve Months Ended Dec. 31, 2024									Twelve Months Ended Dec. 31, 2023
		Average					Average				Average					Average
Assets		Balance			Interest		Rate				Balance			Interest		Rate
	Taxable securities/cash	$	247,026		$	6,844	2.77	%			$	254,133		$	6,092	2.40	%
	Nontaxable securities	6,393			146		2.28	%			7,181			170		2.37	%
	Loans, net	1,014,375			57,359		5.65	%			985,217			51,890		5.27	%
	Total earning assets	1,267,794			64,349		5.08	%			1,246,531			58,152		4.67	%
	Cash and due from banks	4,388									4,035
	Allowance for loan losses	(15,536		)							(15,478		)
	Premises and equipment	20,929									22,990
	Other assets	83,699									76,566
	Total assets	$	1,361,274								$	1,334,644
Liabilities
	Savings, MMDA and interest bearing demand	$	643,710		$	11,073	1.72	%			$	619,906		$	7,599	1.23	%
	Time deposits	259,818			9,962		3.83	%			236,665			7,109		3.00	%
	Repurchase agreements & Other	14,336			154		1.07	%			15,765			74		0.47	%
	Advances from Federal Home Loan Bank	39,092			1,721		4.40	%			55,044			2,603		4.73	%
	Trust preferred securities	10,310			739		7.17	%			10,310			716		6.94	%
	Subordinated debt	19,665			778		3.96	%			19,616			778		3.97	%
	Total interest bearing liabilities	986,931			24,427		2.48	%			957,306			18,879		1.97	%
	Non interest bearing demand	227,445					2.01	%			237,976					1.58	%
	Total funding	1,214,376									1,195,282
	Other liabilities	22,156									21,047
	Total liabilities	1,236,532									1,216,329
	Equity	124,742									118,315
	Total liabilities and equity	$	1,361,274								$	1,334,644
	Net interest income				$	39,922								$	39,273
	Net interest income as a percent of average interest-earning assets - GAAP measure						3.15	%								3.15	%
	Net interest income as a percent of average interest-earning assets - non GAAP						3.16	%								3.16	%
	- 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, 2024				Dec. 31, 2023				Dec. 31, 2024				Dec. 31, 2023
Total Operating Revenue	$	15,454			$	15,115			$	56,939			$	56,994
Adjustment to (deduct)/add OMSR recapture/impairment *	(288		)		12				(42		)		51
Adjusted Total Operating Revenue	15,166				15,127				56,897				57,045
Income before Income Taxes	4,527				4,820				13,856				14,717
Adjustment for OMSR *	(288		)		12				(42		)		51
Adjusted Income before Income Taxes	4,239				4,832				13,814				14,768
Provision for Income Taxes	892				938				2,386				2,623
Adjustment for OMSR **	(60		)		3				(9		)		11
Adjusted Provision for Income Taxes	832				941				2,377				2,634
Net Income	3,635				3,882				11,470				12,094
Adjustment for OMSR *	(228		)		9				(33		)		40
Adjusted Net Income	3,407				3,891				11,437				12,134
Diluted Earnings per Share	0.55				0.57				1.72				1.75
Adjustment for OMSR *	(0.03		)		0.00				(0.00		)		0.01
Adjusted Diluted Earnings per Share	$	0.52			$	0.57			$	1.71			$	1.75
Return on Average Assets	1.04		%		1.17		%		0.84		%		0.91		%
Adjustment for OMSR *	-0.07		%		0.00		%		0.00		%		0.00		%
Adjusted Return on Average Assets	0.98		%		1.17		%		0.84		%		0.91		%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate