SB Financial Group Announces Second Quarter 2025 Results

Rhea-AI Summary

SB Financial Group (NASDAQ: SBFG) reported strong Q2 2025 results with GAAP net income of $3.9 million, or $0.60 per diluted share, up 23.7% from the prior year. The company achieved significant growth metrics including net interest income of $12.1 million (up 25.6% YoY), loan growth of $89.3 million (8.9% increase), and deposit growth of $134.6 million (12.1% increase).

Key performance highlights include mortgage banking revenue of $2.2 million, improved efficiency ratio of 68.9%, and five consecutive quarters of sequential loan growth. The Marblehead acquisition contributed to strengthened liquidity and market expansion in Northern Ohio. Asset quality remained strong with nonperforming assets at 0.42% of total assets and an allowance for credit losses providing 265% coverage of nonperforming loans.

Positive

• Net income increased 23.7% YoY to $3.9 million
• Net interest income grew 25.6% to $12.1 million
• Loan portfolio expanded 8.9% YoY to $1.09 billion
• Deposits increased 12.1% YoY to $1.25 billion
• Tangible book value per share rose 7.7% YoY to $16.44
• Strong asset quality with 265% coverage of nonperforming loans

Negative

• Nonperforming assets increased to $6.2 million from $5.2 million YoY
• Deposits declined 1.7% ($21.4 million) from the linked quarter
• Interest expense increased 5.7% YoY to $6.3 million
• Noninterest expense rose 11.1% YoY to $11.9 million

Insights

Banking Financial Analyst

SBFG shows strong Q2 results with 23.7% earnings growth, improved margins, and successful Marblehead acquisition integration.

SB Financial Group's Q2 2025 results demonstrate robust financial performance across key banking metrics. Net income rose to $3.9 million ($0.60 per share), marking a 23.7% increase from the prior year's $3.1 million. This performance was driven by substantial growth in both interest and non-interest income streams.

The bank's net interest income increased by 25.6% to $12.1 million, reflecting an expanded net interest margin of 3.48% (up 36 basis points year-over-year). This margin improvement is particularly impressive in the current rate environment and indicates effective balance sheet management with the bank successfully growing higher-yielding assets while stabilizing funding costs.

SBFG's loan portfolio grew by $89.3 million (8.9% year-over-year) to $1.09 billion, with $71.3 million representing organic growth beyond the Marblehead acquisition. The commercial real estate segment showed the strongest expansion at 20.9%, now comprising 48% of the total loan portfolio. This marks five consecutive quarters of sequential loan growth, demonstrating consistent execution of their growth strategy.

On the funding side, deposits increased by $134.6 million (12.1%) to $1.25 billion, with $83.8 million coming from organic growth. The deposit mix remained favorable with non-interest and low-cost deposits comprising a significant portion of the base.

The efficiency ratio improved substantially to 68.9% from 75.9% in the prior year, reflecting better operational leverage as revenue growth (22.3%) outpaced expense growth (11.1%). Asset quality metrics remain strong with nonperforming assets at just 0.42% of total assets and loan loss reserves providing 265% coverage of nonperforming loans.

The Marblehead acquisition has been successfully integrated, contributing to both loan and deposit growth while strengthening SBFG's market presence in Northern Ohio. The company also continued its shareholder-friendly capital management with ongoing share repurchases, while maintaining a strong tangible book value of $16.44 per share, up 7.7% year-over-year.

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

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.

"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.

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																Annual Change
($ in thousands, except ratios)	Jun. 2025			Mar. 2025			Dec. 2024			Sep. 2024			Jun. 2024
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”.

Forward-Looking Statements

Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Investor Contact Information:

Mark A. Klein
Chairman, President and
Chief Executive Officer
Mark.Klein@YourStateBank.com

Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
Tony.Cosentino@YourStateBank.com
        

		SB FINANCIAL GROUP, INC.
		CONSOLIDATED BALANCE SHEETS - (Unaudited)
					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

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

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
SUMMARY OF OPERATIONS			2025				2025				2024				2024				2024				2025				2024
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

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
Assets			Balance			Interest		Rate				Balance			Interest		Rate
	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							3.49	%								3.13	%
	- Computed on a fully tax equivalent (FTE) basis
			Six Months Ended Jun. 30, 2025									Six Months Ended Jun. 30, 2024
			Average					Average				Average					Average
Assets			Balance			Interest		Rate				Balance			Interest		Rate
	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							3.44	%								3.06	%
	- Computed on a fully tax equivalent (FTE) basis

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

FAQ

What were SBFG's Q2 2025 earnings per share?

SB Financial reported diluted earnings per share of $0.60, a 27.7% increase from $0.47 in Q2 2024.

How much did SBFG's loan portfolio grow in Q2 2025?

The loan portfolio grew by $89.3 million or 8.9% year-over-year, with $71.3 million being organic growth and $18.0 million from the Marblehead acquisition.

What was SBFG's deposit growth in Q2 2025?

Total deposits increased by $134.6 million or 12.1% year-over-year, including $50.9 million from the Marblehead acquisition and $83.8 million in organic growth.

How did SBFG's mortgage banking perform in Q2 2025?

Mortgage banking revenue reached $2.2 million, up $317,000 from the prior year, with mortgage originations of $97.9 million and a servicing portfolio of $1.46 billion.

What was SBFG's asset quality in Q2 2025?

Nonperforming assets were 0.42% of total assets at $6.2 million, with an allowance for credit losses at 1.43% of total loans providing 265% coverage of nonperforming loans.