EX-99.1 2 ea025048001ex99-1_sbfin.htm NEWS RELEASE ISSUED BY SB FINANCIAL GROUP, INC. ON JULY 24, 2025, REPORTING FINANCIAL RESULTS FOR THE SECOND QUARTER 2025

Exhibit 99.1

 

 

 

SB Financial Group Announces Second Quarter 2025 Results

 

DEFIANCE, OH, July 24, 2025 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the second quarter ended June 30, 2025.

 

Second Quarter 2025 Highlights compared to the second quarter of the prior year include:

 

●GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.60 per DEPS, well above the $3.1 million, or $0.47 per DEPS in the prior year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”), was $3.7 million, up 20.9 percent compared to $3.1 million for the prior-year period. Adjusted DEPS of $0.58 was also up 25.4 percent, from the prior year.

 

●Net interest income of $12.1 million increased by 25.6 percent from $9.7 million reported in the prior-year quarter.

 

●Loan growth of $89.3 million, or 8.9 percent from the prior-year quarter, with growth from the linked quarter of $6.4 million, or 0.6 percent. This marks five consecutive quarters of sequential loan growth. Loan growth adjusted for the Marblehead acquisition, was $71.3 and $7.0 million, from the prior year and linked quarters, respectively.

 

●Deposit growth of $134.6 million, or 12.1 percent from the prior-year quarter, with a decline from the linked quarter of $21.4 million, or 1.7 percent. Adjusted for the Marblehead acquisition, total deposits increased $83.8 million from the prior year.

 

●Tangible book value (“TBV”) per share ended the quarter at $16.44 up $1.18 per share or 7.7 percent from the prior year quarter.

 

Six months ended June 30, 2025 Highlights compared to the same period of the prior year:

 

●Mortgage banking revenue totaled $3.6 million for the first half of 2025, reflecting an increase of 6.9 percent compared to $3.4 million for the first half of 2024.

 

●Net interest income rose to $23.4 million, representing a year-over-year improvement of 24.3 percent from $18.8 million for the six months ending June 30,2024.

 

●Total interest expense came in at $12.4 million, up slightly by 2.6 percent from $12.1 million in the prior year period.

  

Earnings Highlights  Three Months Ended   Six Months Ended 
($ in thousands, except per share & ratios)  Jun. 2025   Jun. 2024   % Change   Jun. 2025   Jun. 2024   % Change 
Operating revenue  $17,176   $14,045    22.3%  $32,562   $27,176    19.8%
Interest income   18,467    15,654    18.0%   35,840    30,954    15.8%
Interest expense   6,339    5,995    5.7%   12,432    12,115    2.6%
Net interest income   12,128    9,659    25.6%   23,408    18,839    24.3%
Provision for credit losses   597    -    N/M    984    -    N/M 
Noninterest income   5,048    4,386    15.1%   9,154    8,337    9.8%
Noninterest expense   11,852    10,671    11.1%   24,262    20,953    15.8%
Net income   3,852    3,113    23.7%   6,010    5,481    9.7%
Adjusted Earnings per diluted share   0.58    0.46    26.1%   1.00    0.79    26.6%
Earnings per diluted share   0.60    0.47    27.7%   0.93    0.82    13.4%
Adjusted Return on Avg. Assets   1.00%   0.92%   8.7%   0.85%   0.81%   4.9%
Return on average assets   1.03%   0.93%   10.8%   0.82%   0.82%   0.0%
Adjusted Return on Avg. Equity   11.29%   10.12%   11.5%   10.54%   8.45%   24.7%
Return on average equity   11.67%   10.22%   14.2%   9.19%   9.02%   1.9%

 

 

 

 

“Our second quarter results highlight the execution of our growth strategy and disciplined operational management, and their positive impact on our results,” said Mark A. Klein, Chairman, President, and CEO. “Net income for the quarter was $3.9 million, a 23.7 percent increase from the prior-year quarter, with the GAAP DEPS of $0.60 up 27.7 percent from the prior year. Our solid second quarter performance reflects the first full quarter of contribution from the Marblehead acquisition which strengthened our liquidity position and further expanded our market presence in Northern Ohio.”

 

Net interest income for the quarter grew by 25.6 percent to $12.1 million compared to the previous year, driven by continued strong loan growth and stabilization of funding costs. Total loans increased by $89.3 million, compared to the prior year, and by $6.4 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $71.3. Deposits rose $134.6 million, or 12.1 percent, to $1.25 billion, reflecting the impact of the acquisition and the strength of our new and existing client relationships. Adjusted for the acquisition, deposits increased $83.8 million from the prior year.

 

RESULTS OF OPERATIONS

 

In the second quarter of 2025, total operating revenue increased to $17.2 million, a 22.3 percent rise from $14.0 million in the prior year and an 11.6 percent increase from the linked quarter, driven by continued growth in both net interest income and noninterest income. Net interest income reached $12.1 million, a strong 25.6 percent year-over-year increase, reflecting higher interest income on loans, which rose by $2.2 million to $16.2 million. Deposit costs increased by 7.5 percent to $5.6 million but were partially offset by decreases in interest expense on other funding sources, resulting in a 5.7 percent increase in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 36 basis points year-over-year to 3.48 percent, reflecting the continued strength of our interest-earning assets and stabilization of funding costs. Noninterest income for the quarter increased by 15.1 percent year-over-year to $5.0 million due primarily to improvements in gain on sale of mortgage loans and title insurance as well as modest increases in wealth management, mortgage loan servicing and customer service fees. These fees were partially offset by decreases in gain on sales of non-mortgage loans. “We continue to focus on maintaining a balanced growth strategy and diversified revenue stream coupled with effective cost management,” said Mr. Klein.

 

Mortgage Loan Business

 

Net mortgage banking revenue for the quarter reached $2.2 million, up $317,000 from the prior-year quarter. Loan servicing fees added $904,000 to revenue, reflecting an increase of $42,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2025 was a positive $159,000 compared to a positive $38,000 in the second quarter of 2024.

 

Mortgage Banking 

 

($ in thousands)  Jun. 2025   Mar. 2025   Dec. 2024   Sep. 2024   Jun. 2024   Prior Year Growth 
Mortgage originations  $97,901   $39,775   $72,534   $70,715   $75,110   $22,791 
Mortgage sales   74,313    39,279    62,301    61,271    55,835    18,478 
Mortgage servicing portfolio   1,456,374    1,432,184    1,427,318    1,406,273    1,389,805    66,569 
Mortgage servicing rights   15,896    14,965    14,868    14,357    14,548    1,348 
                               
Revenue                              
Loan servicing fees   904    894    886    874    862    42 
OMSR amortization   (469)   (294)   (358)   (370)   (335)   (134)
Net administrative fees   435    600    528    504    527    (92)
OMSR valuation adjustment   159    11    288    (465)   38    121 
Net loan servicing fees   594    611    816    39    565    29 
Gain on sale of mortgages   1,565    849    1,196    1,311    1,277    288 
Mortgage banking revenue, net  $2,159   $1,460   $2,012   $1,350   $1,842   $317 

 

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Noninterest Income and Noninterest Expense

 

“Noninterest income for the second quarter of 2025 totaled $5.0 million, up $661,000 or 15.1 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $289,000 year over year, and title insurance revenue added $176,000, reflecting our revenue diversification strategy,” Mr. Klein noted.

 

Noninterest Income/Noninterest Expense

 

($ in thousands, except ratios)  Jun. 2025   Mar. 2025   Dec. 2024   Sep. 2024   Jun. 2024   Prior Year Growth 
Noninterest Income (NII)  $5,048   $4,107   $4,557   $4,123   $4,386   $662 
NII / Total Revenue   29.4%   26.7%   29.5%   28.8%   31.5%   -2.1%
NII / Average Assets   1.4%   1.1%   1.3%   1.2%   1.3%   0.1%
Total Revenue Growth   22.3%   17.2%   2.2%   4.5%   -0.6%   22.9%
                               
Noninterest Expense (NIE)  $11,852   $12,410   $11,003   $11,003   $10,671   $1,181 
Efficiency Ratio   68.9%   80.0%   71.1%   76.8%   75.9%   -7.0%
NIE / Average Assets   3.2%   3.4%   3.2%   3.2%   3.2%   0.0%
Net Noninterest Expense/Avg. Assets   -1.8%   -2.3%   -1.8%   -2.0%   -1.9%   0.1%
Total Expense Growth   11.1%   20.7%   6.1%   5.0%   3.2%   7.9%

 

Noninterest expense for the second quarter of 2025 was $11.9 million, up 11.1 percent from the prior year, driven primarily by increased salary and benefit expenses, data processing and professional fees.

 

“Our efficiency ratio in the second quarter of 2025 was 68.9 percent marking a solid improvement compared to the linked quarter and the prior year,” stated Mr. Klein.

 

Balance Sheet

 

As of June 30, 2025, SB Financial reported total assets of $1.49 billion, down slightly from the linked quarter but higher than the previous year. Year-over-year growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $89.3 million or 8.9 percent increase year over year. Loan growth also included $18.0 million in loans added with the completion of the acquisition. Cash increased by $57.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.

 

Total deposits increased to $1.25 billion, growing $134.6 million or 12.1 percent year over year, including $50.9 million in low-cost deposits from the acquisition and $83.8 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement within dynamic markets. Shareholders’ equity ended the quarter at $133.6 million, representing an $8.2 million increase from the prior year. This growth reflects management’s ongoing commitment to enhancing shareholder value through solid earnings performance.

 

During the second quarter, SB Financial repurchased 124,000 shares, more than in the previous quarters as the Company made opportunistic purchases below our target range. This reflects the Company’s commitment to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth.

 

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“As we progress through the second half of 2025, our balance sheet strength and strategic management of resources form a foundation to support our long-term strategic growth ambitions,” said Mr. Klein. “Even in the current uncertain rate environment, we achieved our fifth consecutive quarter of sequential loan growth, with balances increasing by $89.3 million from the previous year, which included $71.3 million of organic loan growth. This performance underscores the strength of our deep client relationships and our sustained competitiveness in local markets as we pursue an innovative, “hybrid” office operating strategy. Our strong asset quality, supported by top-decile coverage ratios, remains a key component of our financial stability, which will enable us to take advantage of emerging opportunities while continuing to pursue operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economy evolves and stabilizes.”

 

Loan Balances

 

($ in thousands, except ratios)  Jun. 2025   Mar. 2025   Dec. 2024   Sep. 2024   Jun. 2024   Annual Growth 
Commercial  $118,984   $125,878   $124,764   $123,821   $123,287   $(4,303)
% of Total   10.9%   11.6%   11.9%   12.0%   12.3%   -3.5%
Commercial RE   525,671    509,518    479,573    459,449    434,967    90,704 
% of Total   48.0%   46.8%   45.8%   44.6%   43.3%   20.9%
Agriculture   60,924    61,443    64,680    64,887    64,329    (3,405)
% of Total   5.6%   5.6%   6.2%   6.3%   6.4%   -5.3%
Residential RE   310,126    319,307    308,378    314,010    316,233    (6,107)
% of Total   28.3%   29.3%   29.5%   30.5%   31.5%   -1.9%
Consumer & Other   79,014    72,128    69,340    67,788    66,574    12,440 
% of Total   7.2%   6.6%   6.6%   6.6%   6.6%   18.7%
Total Loans  $1,094,719   $1,088,274   $1,046,735   $1,029,955   $1,005,390   $89,329 
Total Growth Percentage                            8.9%

 

Deposit Balances

 

($ in thousands, except ratios)  Jun. 2025   Mar. 2025   Dec. 2024   Sep. 2024   Jun. 2024   Annual Growth 
Non-Int DDA  $241,245   $240,446   $232,155   $222,425   $208,244   $33,001 
% of Total   19.3%   18.9%   20.1%   19.2%   18.7%   15.8%
Interest DDA   205,581    208,583    201,085    202,097    190,857    14,724 
% of Total   16.4%   16.4%   17.4%   17.4%   17.1%   7.7%
Savings   282,311    285,902    237,987    241,761    231,855    50,456 
% of Total   22.6%   22.5%   20.6%   20.8%   20.8%   21.8%
Money Market   249,536    257,013    222,161    228,182    225,650    23,886 
% of Total   20.0%   20.2%   19.3%   19.7%   20.2%   10.6%
Time Deposits   271,149    279,276    259,217    265,068    258,582    12,567 
% of Total   21.7%   22.0%   22.5%   22.9%   23.2%   4.9%
Total Deposits  $1,249,822   $1,271,220   $1,152,605   $1,159,533   $1,115,188   $134,634 
Total Growth Percentage                            12.1%

 

Asset Quality

 

As of June 30, 2025, SB Financial continued to focus on strong asset quality metrics. Nonperforming assets totaled $6.2 million, representing 0.42 percent of total assets, an increase of $944,000 compared to $5.2 million or 0.39 percent of total assets reported in the prior year, but relatively stable compared to the linked quarter balance of $6.1 million, representing 0.41 percent of total assets.

 

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The allowance for credit losses remained strong at 1.43 percent of total loans, providing 265.0 percent coverage of nonperforming loans, a level consistent with the linked quarter and reflective of our conservative approach to risk management. The net loan charge-offs to average loans ratio remained modest at 2 basis points, declining from 3 basis points in the linked quarter but up from the 1 basis point net recoveries recorded in the prior year. These metrics reflect disciplined credit practices and effective collateral management.

 

“Our asset quality metrics embody our approach and commitment to disciplined risk management within a dynamic economic environment,” stated Mr. Klein. “While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio and the strength of our lending relationships. We are committed to balancing our conservative approach in managing credit risk with the need to effectively manage our growth to enhance shareholder returns.”

 

Nonperforming Assets

 

($ in thousands, except ratios)  Jun. 2025   Mar. 2025   Dec. 2024   Sep. 2024   Jun. 2024   Annual Change 
Commercial & Agriculture  $3,306   $3,418   $2,927   $2,899   $2,781   $525 
% of Total Com./Ag. loans   1.84%   1.82%   1.55%   1.54%   1.48%   18.9%
Commercial RE   816    798    807    813    475    341 
% of Total CRE loans   0.16%   0.16%   0.17%   0.18%   0.11%   71.8%
Residential RE   1,577    1,608    1,539    1,536    1,247    330 
% of Total Res. RE loans   0.51%   0.50%   0.50%   0.49%   0.39%   26.5%
Consumer & Other   205    227    243    270    231    (26)
% of Total Con./Oth. loans   0.26%   0.31%   0.35%   0.40%   0.35%   -11.3%
Total Nonaccruing Loans   5,904    6,051    5,516    5,518    4,734    1,170 
% of Total loans   0.54%   0.56%   0.53%   0.54%   0.47%   24.7%
Foreclosed Assets and Other Assets   284    73    -    -    510    (226)
Total Change (%)                            -44.3%
Total Nonperforming Assets  $6,188   $6,124   $5,516   $5,518   $5,244   $944 
% of Total assets   0.42%   0.41%   0.40%   0.40%   0.39%   18.00%

 

Webcast and Conference Call

 

The Company will hold the second quarter 2025 earnings conference call and webcast on July 25, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

 

About SB Financial Group

 

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has 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 and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

 

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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

 

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SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

   June   March   December   September   June 
($ in thousands)  2025   2025   2024   2024   2024 
ASSETS                    
Cash and due from banks  $79,463   $105,145   $25,928   $49,348   $21,983 
Interest bearing time deposits   1,565    1,565    1,565    1,706    2,417 
Available-for-sale securities   195,955    199,721    201,587    211,511    207,856 
Loans held for sale   12,774    4,286    6,770    8,927    7,864 
Loans, net of unearned income   1,094,719    1,088,274    1,046,735    1,029,955    1,005,390 
Allowance for credit losses   (15,645)   (15,391)   (15,096)   (15,278)   (15,612)
Premises and equipment, net   21,857    21,875    20,456    20,715    20,860 
Federal Reserve and FHLB Stock, at cost   5,466    5,340    5,223    5,223    5,204 
Foreclosed assets   284    73    -    -    510 
Interest receivable   5,299    5,072    4,908    4,842    4,818 
Goodwill   27,158    27,158    23,239    23,239    23,239 
Cash value of life insurance   31,060    30,871    30,685    30,488    30,294 
Mortgage servicing rights   15,458    14,965    14,868    14,357    14,548 
Other assets   10,888    12,048    12,649    8,916    12,815 
Total assets  $1,486,301   $1,501,002   $1,379,517   $1,393,949   $1,342,186 
                          
LIABILITIES AND SHAREHOLDERS’ EQUITY                         
Deposits                         
Non interest bearing demand  $241,245   $240,446   $232,155   $222,425   $208,244 
Interest bearing demand   205,581    208,583    201,085    202,097    190,857 
Savings   282,311    285,902    237,987    241,761    231,855 
Money market   249,536    257,013    222,161    228,182    225,650 
Time deposits   271,149    279,276    259,217    265,068    258,582 
Total deposits   1,249,822    1,271,220    1,152,605    1,159,533    1,115,188 
                          
Short-term borrowings   15,640    11,058    10,585    15,240    15,178 
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   19,715    19,702    19,690    19,678    19,666 
Interest payable   2,258    2,634    2,351    3,374    2,944 
Other liabilities   19,908    19,552    21,468    17,973    18,421 
Total liabilities   1,352,653    1,369,476    1,252,009    1,261,108    1,216,707 
                          
Shareholders’ Equity                         
Common stock   61,319    61,319    61,319    61,319    61,319 
Additional paid-in capital   15,139    14,955    15,194    15,090    15,195 
Retained earnings   120,273    117,397    116,186    113,515    112,104 
Accumulated other comprehensive loss   (25,492)   (26,872)   (30,234)   (24,870)   (31,801)
Treasury stock   (37,591)   (35,273)   (34,957)   (32,213)   (31,338)
Total shareholders’ equity   133,648    131,526    127,508    132,841    125,479 
                          
Total liabilities and shareholders’ equity  $1,486,301   $1,501,002   $1,379,517   $1,393,949   $1,342,186 

 

7

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

 

($ in thousands, except per share & ratios)  At and for the Three Months Ended   Six Months Ended 
   June   March   December   September   June   June   June 
Interest income  2025   2025   2024   2024   2024   2025   2024 
Loans                            
Taxable  $16,059   $15,244   $14,920   $14,513   $13,883   $31,303   $27,430 
Tax exempt   116    115    122    127    124    231    247 
Securities                                   
Taxable   1,133    1,169    1,178    1,192    1,226    2,302    2,500 
Tax exempt   35    38    35    37    37    73    74 
Other interest income   1,124    806    592    679    384    1,930    703 
Total interest income   18,467    17,372    16,847    16,548    15,654    35,839    30,954 
                                    
Interest expense                                   
Deposits   5,597    5,352    5,169    5,568    5,208    10,949    10,298 
Repurchase agreements & other   21    24    41    43    36    45    70 
Federal Home Loan Bank advances   366    362    369    369    370    728    983 
Trust preferred securities   161    160    177    187    187    321    375 
Subordinated debt   194    195    194    195    194    389    389 
Total interest expense   6,339    6,093    5,950    6,362    5,995    12,432    12,115 
                                    
Net interest income   12,128    11,279    10,897    10,186    9,659    23,407    18,839 
                                    
Provision for credit losses   597    387    (76)   200    -    984    - 
                                    
Net interest income after provision for loan losses   11,531    10,892    10,973    9,986    9,659    22,423    18,839 
                                    
Noninterest income                                   
Wealth management fees   859    864    916    882    848    1,723    1,713 
Customer service fees   886    879    842    870    875    1,765    1,755 
Gain on sale of mtg. loans & OMSR   1,566    849    1,196    1,311    1,277    2,415    2,058 
Mortgage loan servicing fees, net   594    611    816    39    565    1,205    1,328 
Gain on sale of non-mortgage loans   82    15    10    20    105    97    115 
Title insurance revenue   582    397    478    485    406    979    672 
Net gain on sales of securities   -    -    -    -    -    -    - 
Gain (loss) on sale of assets   -    -    -    200    -    -    - 
Other   479    492    299    316    310    971    696 
Total noninterest income   5,048    4,107    4,557    4,123    4,386    9,155    8,337 
                                    
Noninterest expense                                   
Salaries and employee benefits   6,595    6,237    6,185    6,057    6,009    12,832    11,361 
Net occupancy expense   793    893    702    706    707    1,686    1,476 
Equipment expense   1,121    1,072    1,127    1,069    1,060    2,193    2,137 
Data processing fees   888    1,439    821    758    727    2,327    1,496 
Professional fees   892    1,034    895    659    615    1,926    1,373 
Marketing expense   190    165    207    241    176    355    373 
Telephone and communication expense   125    139    136    128    156    264    261 
Postage and delivery expense   107    137    116    145    89    244    186 
State, local and other taxes   268    224    224    208    230    492    475 
Employee expense   176    174    168    228    159    350    337 
Other expenses   697    896    422    804    743    1,593    1,478 
Total noninterest expense   11,852    12,410    11,003    11,003    10,671    24,262    20,953 
                                    
Income before income tax expense   4,727    2,589    4,527    3,106    3,374    7,316    6,223 
Income tax expense   875    431    892    752    261    1,306    742 
                                    
Net income  $3,852   $2,158   $3,635   $2,354   $3,113   $6,010   $5,481 
                                    
Common share data:                                   
Basic earnings per common share  $0.60   $0.33   $0.55   $0.35   $0.47   $0.93   $0.82 
Diluted earnings per common share  $0.60   $0.33   $0.55   $0.35   $0.47   $0.93   $0.82 
                                    
Average shares outstanding (in thousands):                                   
Basic:   6,448    6,481    6,575    6,660    6,692    6,464    6,703 
Diluted:   6,459    6,502    6,599    6,675    6,700    6,483    6,715 

 

8

 

 

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands, except per share & ratios)  At and for the Three Months Ended   Six Months Ended 
   June   March   December   September   June   June   June 
   2025   2025   2024   2024   2024   2025   2024 
SUMMARY OF OPERATIONS                                   
Net interest income  $12,128   $11,279   $10,897   $10,186   $9,659   $23,407   $18,839 
Tax-equivalent adjustment   40    41    42    44    43    81    85 
Tax-equivalent net interest income   12,168    11,320    10,939    10,230    9,702    23,488    18,924 
Provision for credit loss   597    387    (76)   200    -    984    - 
Noninterest income   5,048    4,107    4,557    4,123    4,386    9,155    8,337 
Total operating revenue   17,176    15,386    15,454    14,309    14,045    32,562    27,176 
Noninterest expense   11,852    12,410    11,003    11,003    10,671    24,262    20,953 
Pre-tax pre-provision income   5,324    2,976    4,451    3,306    3,374    8,300    6,223 
Net income   3,852    2,158    3,635    2,354    3,113    6,010    5,481 
                                    
PER SHARE INFORMATION:                                   
Basic earnings per share (EPS)   0.60    0.33    0.55    0.35    0.47    0.93    0.82 
Diluted earnings per share   0.60    0.33    0.55    0.35    0.47    0.93    0.82 
Common dividends   0.150    0.145    0.145    0.140    0.140    0.295    0.275 
Book value per common share   21.02    20.29    19.64    20.05    18.80    21.02    18.80 
Tangible book value per common share (TBV)   16.44    15.79    16.00    16.49    15.26    16.44    15.26 
Market price per common share   19.10    20.82    20.91    20.56    14.00    19.10    14.00 
Market price to TBV   116.2%   131.8%   130.7%   124.7%   91.8%   116.2%   0.92 
Market price to trailing 12 month EPS   10.4    12.2    12.1    11.8    7.9    10.4    7.9 
                                    
PERFORMANCE RATIOS:                                   
Return on average assets (ROAA)   1.03%   0.60%   1.04%   0.68%   0.93%   0.82%   0.82%
Pre-tax pre-provision ROAA   1.42%   0.83%   1.27%   0.96%   1.01%   0.88%   1.00%
Return on average equity (ROE)   11.67%   6.63%   11.07%   7.28%   10.22%   9.19%   9.02%
Return on average tangible equity   14.97%   8.32%   13.51%   8.92%   12.66%   11.64%   11.21%
Efficiency ratio   68.90%   80.00%   71.09%   76.78%   75.86%   74.14%   76.98%
Earning asset yield   5.29%   5.23%   5.18%   5.16%   5.02%   5.25%   4.96%
Cost of interest bearing liabilities   2.33%   2.32%   2.36%   2.53%   2.47%   2.30%   2.51%
Net interest margin   3.48%   3.40%   3.35%   3.17%   3.12%   3.43%   3.04%
Tax equivalent effect   0.01%   0.01%   0.01%   0.02%   0.01%   0.01%   0.01%
Net interest margin, tax equivalent   3.49%   3.41%   3.36%   3.19%   3.13%   3.44%   3.05%
Non interest income/Average assets   1.35%   1.14%   1.30%   1.19%   1.31%   1.25%   1.25%
Non interest expense/Average assets   3.17%   3.45%   3.14%   3.18%   3.20%   3.31%   3.15%
Net noninterest expense/Average assets   -1.82%   -2.31%   -1.84%   -1.99%   -1.88%   -2.06%   -1.90%
                                    
ASSET QUALITY RATIOS:                                   
Gross charge-offs   49    86    195    29    -    135    66 
Recoveries   3    2    13    2    16    5    25 
Net charge-offs   46    84    182    27    (16)   130    41 
Nonperforming loans/Total loans   0.54%   0.56%   0.53%   0.54%   0.47%   0.54%   0.47%
Nonperforming assets/Loans & OREO   0.57%   0.56%   0.53%   0.54%   0.52%   0.57%   0.52%
Nonperforming assets/Total assets   0.42%   0.41%   0.40%   0.40%   0.39%   0.42%   0.39%
Allowance for credit loss/Nonperforming loans   264.99%   254.35%   273.68%   276.83%   329.78%   264.99%   329.78%
Allowance for credit loss/Total loans   1.43%   1.41%   1.44%   1.48%   1.55%   1.43%   1.55%
Net loan charge-offs/Average loans (ann.)   0.02%   0.03%   0.07%   0.01%   (0.01)%   0.02%   0.01%
                                    
CAPITAL & LIQUIDITY RATIOS:                                   
Loans/ Deposits   87.59%   85.61%   90.81%   88.82%   90.15%   87.59%   90.15%
Equity/ Assets   8.99%   8.76%   9.24%   9.53%   9.35%   8.99%   9.35%
Tangible equity/Tangible assets   7.17%   6.96%   7.66%   7.97%   7.72%   7.17%   7.72%
Common equity tier 1 ratio (Bank)   12.53%   12.35%   13.43%   13.19%   13.98%   12.53%   13.98%
                                    
END OF PERIOD BALANCES                                   
Total assets   1,486,301    1,501,002    1,379,517    1,393,949    1,342,186    1,486,301    1,342,186 
Total loans   1,094,719    1,088,274    1,046,735    1,029,955    1,005,390    1,094,719    1,005,390 
Deposits   1,249,822    1,271,220    1,152,605    1,159,533    1,115,188    1,249,822    1,115,188 
Shareholders equity   133,648    131,526    127,508    132,841    125,479    133,648    125,479 
Goodwill and intangibles   29,107    29,125    23,597    23,613    23,630    29,107    23,630 
Tangible equity   104,541    102,401    103,911    109,228    101,849    104,541    101,849 
Mortgage servicing portfolio   1,456,374    1,432,184    1,427,318    1,406,273    1,389,805    1,456,374    1,389,805 
Wealth/Brokerage assets under care   536,836    519,158    547,697    557,724    525,713    536,836    525,713 
Total assets under care   3,479,511    3,452,344    3,354,532    3,357,946    3,257,704    3,479,511    3,257,704 
Full-time equivalent employees   256    262    252    248    249    256    249 
Period end common shares outstanding   6,359    6,483    6,494    6,624    6,676    6,359    6,676 
Market capitalization (all)   121,453    134,982    135,780    136,189    93,458    121,453    93,458 
                                    
AVERAGE BALANCES                                   
Total assets   1,498,756    1,459,896    1,395,473    1,376,849    1,342,847    1,479,613    1,337,244 
Total earning assets   1,399,485    1,346,354    1,301,872    1,283,407    1,246,099    1,377,780    1,246,956 
Total loans   1,094,199    1,076,328    1,040,580    1,018,262    1,005,018    1,085,313    999,164 
Deposits   1,270,798    1,227,449    1,163,531    1,145,964    1,120,367    1,249,885    1,106,633 
Shareholders equity   132,353    131,944    130,647    128,608    122,510    131,849    121,474 
Goodwill and intangibles   29,116    26,714    23,605    23,621    23,638    27,742    23,646 
Tangible equity   103,237    105,230    107,042    104,987    98,872    104,107    97,828 
Average basic shares outstanding   6,448    6,481    6,575    6,660    6,692    6,464    6,703 
Average diluted shares outstanding   6,459    6,502    6,599    6,675    6,700    6,483    6,715 

 

9

 

 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

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

 

($ in thousands)  Three Months Ended Jun. 30, 2025   Three Months Ended Jun. 30, 2024 
   Average       Average   Average       Average 
   Balance   Interest   Rate   Balance   Interest   Rate 
Assets                              
Taxable securities  $198,558   $1,133    2.29%  $209,347   $1,226    2.36%
Overnight Cash   101,964    1,124    4.42%   27,885    384    5.54%
Nontaxable securities   4,764    35    2.95%   4,761    37    3.13%
Loans, net   1,094,199    16,175    5.93%   1,005,018    14,007    5.61%
Total earning assets   1,399,485    18,467    5.29%   1,247,011    15,654    5.05%
                               
Cash on hand   4,951              4,448           
Allowance for loan losses   (15,483)             (15,647)          
Premises and equipment   21,719              20,978           
Other assets   88,084              86,969           
Total assets  $1,498,756             $1,343,759           
                               
Liabilities                              
Savings, MMDA and interest bearing demand  $740,677   $3,223    1.75%  $637,561   $2,776    1.75%
Time deposits   276,376    2,374    3.44%   257,359    2,432    3.80%
Repurchase agreements & other   10,518    21    0.80%   12,050    36    1.20%
Advances from Federal Home Loan Bank   35,000    366    4.19%   35,374    370    4.21%
Trust preferred securities   10,310    161    6.26%   10,310    187    7.29%
Subordinated debt   19,707    194    3.95%   19,658    194    3.97%
Total interest bearing liabilities   1,092,588    6,339    2.33%   972,312    5,995    2.48%
                               
Non interest bearing demand   253,745    -         225,447    -      
Total funding   1,346,333         1.89%   1,197,759         2.01%
Other liabilities   20,070              22,578           
Total liabilities   1,366,403              1,220,337           
                               
Equity   132,353              122,510           
Total liabilities and equity  $1,498,756             $1,342,847           
                               
Net interest income       $12,128             $9,659      
                               
Net interest income as a percent of average interest-earning assets - GAAP measure             3.48%             3.12%
                               
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis             3.49%             3.13%

 

10

 

 

   Six Months Ended Jun. 30, 2025   Six Months Ended Jun. 30, 2024 
   Average       Average   Average       Average 
   Balance   Interest   Rate   Balance   Interest   Rate 
Assets                              
Taxable securities  $200,968   $2,302    2.31%  $214,418   $2,500    2.34%
Overnight Cash  $86,379    1,930    4.51%   25,744    703    5.49%
Nontaxable securities   5,120    73    2.88%   4,760    74    3.13%
Loans, net   1,085,313    31,534    5.86%   999,164    27,677    5.57%
Total earning assets   1,377,780    35,839    5.25%   1,244,086    30,954    5.00%
                               
Cash on hand   4,796              4,479           
Allowance for loan losses   (15,361)             (15,739)          
Premises and equipment   21,403              21,130           
Other assets   90,995              80,418           
Total assets  $1,479,613             $1,334,374           
                               
Liabilities                              
Savings, MMDA and interest bearing demand  $725,729   $6,182    1.72%  $621,950   $5,301    1.71%
Time deposits   276,315    4,767    3.48%   257,975    4,997    3.90%
Repurchase agreements & Other   11,805    45    0.77%   14,021    70    1.00%
Advances from Federal Home Loan Bank   35,022    728    4.19%   43,202    983    4.58%
Trust preferred securities   19,701    321    3.29%   10,310    375    7.31%
Subordinated debt   19,665    389    3.99%   19,652    389    3.98%
Total interest bearing liabilities   1,088,237    12,432    2.30%   967,110    12,115    2.52%
                               
Non interest bearing demand   247,841         1.88%   226,708         2.04%
Total funding   1,336,078              1,193,818           
Other liabilities   11,686              21,952           
Total liabilities   1,347,764              1,215,770           
                               
Equity   131,849              121,474           
Total liabilities and equity  $1,479,613             $1,337,244           
                               
Net interest income       $23,407             $18,839      
                               
Net interest income as a percent of average interest-earning assets - GAAP measure             3.43%             3.05%
                               
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis             3.44%             3.06%

 

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Non-GAAP reconciliation  Three Months Ended   Six Months Ended 
($ in thousands, except per share & ratios)  Jun. 30,
2025		   Jun. 30,
2024		   Jun. 30,
2025		   Jun. 30,
2024		 
                 
Total Operating Revenue  $17,176   $14,045   $32,562   $27,176 
Adjustment to (deduct)/add OMSR recapture/impairment *   (159)   (38)   (170)   (219)
Adjusted Total Operating Revenue   17,017    14,007    32,392    26,957 
                     
Total Operating Expense  $11,852   $10,671   $24,262   $20,953 
Adjustment for merger expenses   -    -    (726)   - 
Adjusted Total Operating Expense   11,852    10,671    23,536    20,953 
                     
Income before Income Taxes   4,727    3,374    7,316    6,223 
Adjustment for OMSR*/Merger Expenses   (159)   (38)   556    (219)
Adjusted Income before Income Taxes   4,568    3,336    7,872    6,004 
                     
Provision for Income Taxes   875    281    1,306    742 
Adjustment for OMSR/Merger Expenses **   (33)   (8)   117    (46)
Adjusted Provision for Income Taxes   842    273    1,423    696 
                     
Net Income   3,852    3,113    6,010    5,481 
Adjustment for OMSR*/Merger Expenses   (126)   (30)   439    (173)
Adjusted Net Income   3,726    3,083    6,449    5,308 
                     
Diluted Earnings per Share   0.60    0.47    0.93    0.82 
Adjustment for OMSR*/Merger Expenses   (0.02)   (0.01)   0.07    (0.03)
Adjusted Diluted Earnings per Share  $0.58   $0.46   $0.99   $0.79 
                     
Return on Average Assets   1.03%   0.93%   0.82%   0.82%
Adjustment for OMSR*/Merger Expenses   -0.03%   -0.01%   0.03%   -0.01%
Adjusted Return on Average Assets   1.00%   0.92%   0.85%   0.81%
                     
* valuation adjustment to the Company’s mortgage servicing rights                    
                     
** tax effect is calculated using a 21% statutory federal corporate income tax rate                    
                     
Return on Average Equity   11.67%   10.22%   9.19%   9.02%
Adjustment for OMSR*/Merger Expenses   -0.37962%   -0.09802%   1.34481%   -0.56970%
Adjusted Return on Average Equity   11.29%   10.12%   10.54%   8.45%

 

 

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