SB Financial Group Announces Second Quarter 2026 Results

Rhea-AI Summary

SB Financial Group (NASDAQ: SBFG) reported second quarter 2026 net income of $4.5 million, up 16.7% year over year, with GAAP diluted EPS of $0.72, up 20.0%. Adjusted net income was $4.5 million and adjusted diluted EPS $0.73, increases of 21.8% and 25.9%, respectively.

Total loans reached $1.19 billion, up 8.7% from a year earlier, while total deposits rose 11.3% to $1.39 billion. Tangible book value per share increased 15.8% to $19.04. For the first six months of 2026, net income grew 46.3% to $8.8 million and diluted EPS rose 51.6% to $1.41. Asset quality improved, with nonperforming assets declining to $4.4 million, or 0.27% of total assets, and the allowance for credit losses at 1.38% of total loans, covering 470.2% of nonperforming loans.

Positive

• Q2 2026 net income up 16.7% YoY to $4.5 million
• Q2 diluted EPS up 20.0% YoY to $0.72
• Six‑month 2026 net income up 46.3% YoY to $8.8 million
• Total loans up 8.7% YoY to $1.19 billion
• Total deposits up 11.3% YoY to $1.39 billion
• Tangible book value per share up 15.8% YoY to $19.04
• Nonperforming assets reduced to 0.27% of total assets
• Core efficiency ratio improved to 67.3% from 68.9% YoY

Negative

• Net interest margin declined about 5 bps to 3.43% YoY
• Q2 noninterest income decreased 1.2% YoY to $5.0 million
• Mortgage banking revenue down $236,000 YoY to $1.9 million
• Q2 noninterest expense up 2.4% YoY to $12.1 million
• Interest expense up 8.3% YoY to $6.9 million

News Explained

The July 23 results release reports that SB Financial Group repurchased approximately 28,000 shares during the second quarter, adding a completed share repurchase to the quarter’s capital-allocation activity.

Market Context

Insider context recorded Net Buying during the analyzed period, adding an ownership signal to this e...

Analysis

Insider context recorded Net Buying during the analyzed period, adding an ownership signal to this earnings announcement. Low short positioning remained a relevant risk context, while credit quality and deposit trends warrant monitoring.

Key Figures

Q2 net income: $4.5 million Diluted EPS: $0.72 Adjusted DEPS: $0.73 +5 more

8 metrics

Q2 net income $4.5 million Second quarter 2026; up from $3.9 million prior-year quarter

Diluted EPS $0.72 Second quarter 2026; up from $0.60 prior-year quarter

Adjusted DEPS $0.73 Second quarter 2026; up 25.9% from adjusted prior-year result

Total loans $1.19 billion Quarter ended June 30, 2026; up 8.7% year over year

Total deposits $1.39 billion Quarter ended June 30, 2026; up 11.3% year over year

Six-month net income $8.8 million Six months ended June 30, 2026; up 46.3% year over year

Net interest margin 3.43% Second quarter 2026; down from 3.48% prior-year quarter

Nonperforming assets $4.4 million, 0.27% of total assets As of June 30, 2026; down from $6.2 million and 0.41% prior year

Previous Earnings Reports

5 past events · Latest: Apr 23 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 23	earnings report	Positive	+4.1%	First-quarter results showed higher earnings, revenue, loans, deposits, and tangible book value.
Jan 29	earnings report	Positive	+1.1%	Fourth-quarter results showed earnings growth, stronger net interest income, loans, deposits, and tangible book value.
Oct 30	earnings report	Positive	+3.8%	Third-quarter results reported higher earnings, net interest income, loans, deposits, and adjusted earnings per share.
Jul 24	earnings report	Positive	-0.3%	Second-quarter results showed earnings, net interest income, loans, and deposits growth.
May 01	earnings report	Positive	+0.0%	First-quarter results showed adjusted earnings growth, acquisition completion, and higher loans and deposits.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings-tagged history was mostly positive, with three gains, one decline, one unchanged result, and an average move of 1.72%.

Key Terms

aoci, tangible book value, net interest margin, nonperforming assets

4 terms

aoci financial

"Adjusted tangible book value excluding AOCI advanced to $22.57 at quarter end"

Accumulated Other Comprehensive Income (AOCI) is a section of owners’ equity that records certain unrealized gains and losses that aren’t shown in the company’s regular profit and loss statement—things like currency translation shifts, changes in the value of certain investments, or pension plan adjustments. Think of it as a separate holding jar for value swings the company hasn’t cashed in yet; investors watch it because large or volatile balances can change reported net worth and signal future earnings or balance-sheet risk when those items are realized.

tangible book value financial

"Tangible book value (“TBV”) per common share finished the quarter at $19.04"

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

View in glossary

net interest margin financial

"net interest margin decreased approximately 5 basis points from 3.48 percent"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

nonperforming assets financial

"Nonperforming assets totaled $4.4 million, representing 0.27 percent of total assets"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DEFIANCE, Ohio, July 23, 2026 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights compared to the second quarter of the prior year include:

• Net Income, GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.5 million, or $0.72 per DEPS, an improvement from the $3.9 million, or $0.60 per DEPS in the prior-year quarter. Net income, adjusted for Originated Mortgage Servicing Rights (“OMSR”) and merger costs, was $4.5 million, up 21.8 percent compared to $3.7 million for the prior-year period. Adjusted DEPS of $0.73 was also up 25.9 percent from the adjusted prior-year.
  
• Total loans reached $1.19 billion, reflecting an increase of $94.8 million, or 8.7 percent, from the prior-year quarter and an improvement of $8.4 million, or 0.71 percent, from the linked quarter. This performance marks SBFG's ninth consecutive quarter of expansion in our loan portfolio.
  
• Total deposits climbed to $1.39 billion, increasing by $141.3 million, or 11.3 percent, from the prior-year quarter, and up $19.3 million, or 1.4 percent, from the linked quarter.
  
• Tangible book value (“TBV”) per common share finished the quarter at $19.04, climbing $2.60 per share, or 15.8 percent, from $16.44 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $22.57 at quarter end.
  
  

Six months ended June 30, 2026 Highlights compared to the same period of the prior-year:

• GAAP net income increased to $8.8 million, a 46.3 percent expansion compared to the $6.0 million reported for the previous six months, and diluted EPS was $1.41, an improvement of 51.6 percent from $0.93.
  
• Net interest income rose to $25.7 million, representing a 9.7 percent improvement from the $23.4 million reported in the prior-year period.
  
• Noninterest income increased by 5.9 percent to $9.7 million compared to $9.2 million reported in the previous six months.
  
• Noninterest expense remained well controlled, decreasing by 0.8 percent to $24.1 million from $24.3 million in the prior-year period.
  
  

Earnings Highlights	Three Months Ended										Six Months Ended
($ in thousands, except per share & ratios)	Jun. 2026			Jun. 2025			% Change				Jun. 2026			Jun. 2025			% Change
Operating revenue	$	17,941		$	17,176		4.5	%			$	35,365		$	32,562		8.6	%
Interest income		19,820			18,467		7.3	%				39,127			35,839		9.2	%
Interest expense		6,866			6,339		8.3	%				13,461			12,432		8.3	%
Net interest income		12,954			12,128		6.8	%				25,666			23,407		9.7	%
Provision for credit losses		299			597		49.9	%				513			984		-47.9	%
Noninterest income		4,987			5,048		-1.2	%				9,699			9,155		5.9	%
Noninterest expense		12,137			11,852		2.4	%				24,066			24,262		-0.8	%
Net income		4,497			3,852		16.7	%				8,793			6,010		46.3	%
Adjusted Earnings per diluted share		0.73			0.58		25.9	%				1.36			1.00		36.0	%
Earnings per diluted share		0.72			0.60		20.0	%				1.41			0.93		51.6	%
Adjusted Return on Avg. Assets		1.13	%		1.00	%	13.0	%				1.07	%		0.85	%	25.9	%
Return on average assets		1.12	%		1.03	%	8.7	%				1.11	%		0.82	%	35.4	%
Adjusted Return on Avg. Equity		12.55	%		11.29	%	11.2	%				11.81	%		10.54	%	12.0	%
Return on average equity		12.44	%		11.67	%	6.6	%				12.24	%		9.19	%	33.2	%

“Net income for the second quarter of 2026 was $4.5 million, a 16.7 percent increase from the prior-year quarter, with GAAP DEPS of $0.72, an improvement of 20.0 percent from the prior-year quarter,” said Mark A. Klein, Chairman, President, and Chief Executive Officer. “This marks our 62nd consecutive quarter of profitability and reflects the continued benefits of not only our expanded balance sheet scale, but also the sustained, robust performance of our diversified community banking and fee-based business lines.”

RESULTS OF OPERATIONS

In the second quarter of 2026, total operating revenue increased to $17.9 million, 4.5 percent improvement from $17.2 million in the prior-year quarter and 3.0 percent from $17.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income, which was partially offset by a modest reduction in noninterest income due to lower net mortgage servicing fees. Net interest income for the quarter totaled $13.0 million, compared with $12.1 million in the prior-year period and $12.7 million in the linked quarter. The year-over-year expansion was driven by a rise in interest income on loans, which climbed to $17.5 million. Total interest expense increased to $6.9 million, up 8.3 percent from $6.3 million in the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin decreased approximately 5 basis points from 3.48 percent in the prior-year quarter to 3.43 percent.

Total loans increased $94.8 million from the prior-year quarter and $8.4 million from the linked quarter. Total deposits at quarter end increased $141.3 million, or 11.3 percent, to $1.39 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across the Company’s markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of a diversified revenue business model.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.9 million, a decrease of $236,000 from the prior-year quarter. Loan servicing fees added $934,000 to revenue, reflecting an increase of $30,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2026 was a negative $54,000, compared with a recapture of $159,000 in the second quarter of 2025.

Mortgage Banking
($ in thousands)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025				Prior Year Growth
Mortgage originations	$	79,346		$	65,768		$	72,398		$	67,609		$	97,901			$	(18,555	)
Mortgage sales		70,253			53,420			70,361			66,408			74,313				(4,060	)
Mortgage servicing portfolio		1,504,657			1,482,052			1,479,982			1,470,360			1,456,374				48,283
Mortgage servicing rights		15,953			15,728			15,254			15,347			15,458				495
Revenue
Loan servicing fees		934			928			928			914			904				30
OMSR amortization		(497	)		(529	)		(572	)		(455	)		(469	)			(28	)
Net administrative fees		437			399			356			459			435				2
OMSR valuation adjustment		(54	)		452			(157	)		(301	)		159				(213	)
Net loan servicing fees		383			851			199			158			594				(211	)
Gain on sale of mortgages		1,541			978			1,272			1,328			1,566				(25	)
Mortgage banking revenue, net	$	1,924		$	1,829		$	1,471		$	1,486		$	2,160			$	(236	)

Noninterest Income and Noninterest Expense

“Noninterest income for the second quarter of 2026 reached $5.0 million, proving highly resilient compared to the prior-year base of $5.0 million,” Mr. Klein noted. “Our wealth management fees improved to $955,000, from $859,000 a year ago, while title insurance contributed $577,000 to total revenue, illustrating the strength of our team's cross-functional internal referral strategies.”

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)		Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025				Prior Year Growth
Noninterest Income (NII)		$	4,987		$	4,712		$	3,708		$	4,244		$	5,048			$	(61	)
NII / Total Revenue			27.8	%		27.0	%		22.6	%		25.6	%		29.4	%			-1.6	%
NII / Average Assets			1.2	%		1.2	%		1.0	%		1.1	%		1.4	%			-0.2	%
Total Revenue Growth			4.5	%		13.3	%		6.3	%		15.9	%		22.3	%			-17.8	%
Noninterest Expense (NIE)		$	12,137		$	11,929		$	11,239		$	11,498		$	11,852			$	285
Efficiency Ratio			67.3	%		68.1	%		68.1	%		69.0	%		68.9	%			-1.6	%
NIE / Average Assets			3.0	%		3.1	%		2.9	%		3.0	%		3.2	%			-0.2	%
Net Noninterest Expense/Avg. Assets			-1.8	%		-1.9	%		-1.9	%		-1.9	%		-1.8	%			0.0	%
Total Expense Growth			2.4	%		-3.9	%		2.1	%		4.5	%		11.1	%			-8.7	%

Noninterest expense for the second quarter of 2026 rose 2.4 percent to $12.1 million from $11.9 million in the prior-year quarter, predominantly driven by an increase of $410,000 in salaries and employee benefits, which totaled $7.0 million, to support revenue-producing lenders. This increase was heavily mitigated by lower data-processing expenses, which decreased to $693,000 from $888,000 in the prior-year quarter as previous merger-related and systems-integration costs fully wound down. “Our core efficiency ratio for the second quarter of 2026 improved to 67.32 percent, compared to 68.90 percent in the second quarter of 2025 and 68.12 percent in the linked quarter,” stated Mr. Klein. “This positive operating leverage reflects our disciplined approach to managing overhead while proactively funding expansion in our growth markets.”

Balance Sheet

As of June 30, 2026, SB Financial reported total assets of $1.62 billion, representing an increase of $74.7 million from December 31, 2025, and $133.8 million, or 9.0 percent, from June 30, 2025. The year-over-year asset growth was primarily driven by steady organic loan generation across commercial and agricultural lines. Cash and due from banks increased by $58.7 million from the prior-year period to $138.2 million, supported by sustained deposit gathering and investment portfolio cash flows. Key balance-sheet metrics for the quarter included a loan-to-deposit ratio of 85.51 percent and a loan-to-asset ratio of 73.43 percent, both of which remained well-aligned with target operating bands.

Total deposits at quarter end reached $1.39 billion, an increase of $141.3 million, or 11.3 percent, from the prior-year quarter, driven by strong client retention and expanded commercial deposit relationships. Noninterest-bearing demand deposits totaled $258.6 million, accounting for 18.6 percent of the total deposit portfolio. Shareholders’ equity finished the period at $146.7 million, representing an increase of $13.1 million, or 9.8 percent, from the prior-year period.

During the second quarter, SB Financial repurchased approximately 28,000 shares, roughly flat compared to the linked quarter, reflecting a measured approach to capital allocation and ongoing evaluation of market dynamics and corporate priorities during the period. The Company remains committed to a prudent capital allocation strategy, supporting shareholder returns through dividends and share buybacks while preserving the financial flexibility to fund organic expansion, strategic initiatives, and capital stability.

“As we enter the second half of 2026, we are operating from a strong fundamental foundation characterized by top-tier capital ratios, exceptional credit quality, and a resilient core deposit franchise,” stated Mr. Klein. “Our consistent organic loan expansion highlights our strong client relationship model and localized lending expertise, while our robust reserve coverage and near-zero delinquency levels reflect our disciplined approach to credit administration. Supported by our diverse fee-generating businesses and careful expense management, we are well-positioned to maintain positive operating leverage and drive long-term value for our shareholders.”

Loan Balances
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Annual Growth
Commercial	$	111,128		$	112,226		$	113,878		$	117,581		$	118,984		$	(7,856	)
% of Total		9.3	%		9.5	%		9.6	%		10.6	%		10.9	%		-6.6	%
Commercial RE		611,274			601,556			596,983			535,307			525,671			85,603
% of Total		51.4	%		50.9	%		50.6	%		48.2	%		48.0	%		16.3	%
Agriculture		81,341			78,569			76,514			65,150			60,924			20,417
% of Total		6.8	%		6.7	%		6.5	%		5.9	%		5.6	%		33.5	%
Residential RE		295,481			299,741			304,741			309,140			310,126			(14,645	)
% of Total		24.8	%		25.4	%		25.8	%		27.8	%		28.3	%		-4.7	%
Consumer & Other		90,335			89,043			88,475			83,367			79,014			11,321
% of Total		7.6	%		7.5	%		7.5	%		7.5	%		7.2	%		14.3	%
Total Loans	$	1,189,559		$	1,181,135		$	1,180,591		$	1,110,545		$	1,094,719		$	94,840
Total Growth Percentage																	8.7	%
Deposit Balances
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025			Annual Growth
Non-Int DDA	$	258,576		$	248,239		$	254,063		$	246,725		$	241,245		$	17,331
% of Total		18.6	%		18.1	%		19.4	%		19.5	%		19.3	%		7.2	%
Interest DDA		206,593			215,594			202,501			194,420			205,581			1,012
% of Total		14.9	%		15.7	%		15.5	%		15.4	%		16.4	%		0.5	%
Savings		325,675			333,662			296,484			290,111			282,311			43,364
% of Total		23.4	%		24.3	%		22.7	%		23.0	%		22.6	%		15.4	%
Money Market		315,363			300,028			280,896			261,953			249,536			65,827
% of Total		22.7	%		21.9	%		21.5	%		20.7	%		20.0	%		26.4	%
Time Deposits		284,940			274,300			273,300			269,313			271,149			13,791
% of Total		20.5	%		20.0	%		20.9	%		21.3	%		21.7	%		5.1	%
Total Deposits	$	1,391,147		$	1,371,823		$	1,307,244		$	1,262,522		$	1,249,822		$	141,325
Total Growth Percentage																	11.3	%

Asset Quality

As of June 30, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.4 million, representing 0.27 percent of total assets, reflecting a decrease of $1.8 million from $6.2 million (0.41 percent of total assets) in the prior-year quarter. Within total nonperforming assets, nonaccruing loans declined to $3.5 million, while foreclosed properties and other assets stood at $936,000. The allowance for credit losses remained strong at 1.38 percent of total loans, providing coverage of 470.2 percent of nonperforming loans. This reserve level represents an improvement from the prior-year period, reflecting the Company’s disciplined credit risk framework. Annualized net loan charge-offs to average loans remained very low at 6 basis points, compared to 1 basis point in the linked quarter and 2 basis points in the prior-year quarter, with gross charge-offs totaling $196,000. Collectively, these metrics underscore SB Financial's continued focus on disciplined underwriting and effective credit administration.

“Our credit results for the second quarter continue to demonstrate excellent stability across the loan portfolio and steady progress in resolving nonperforming assets,” said Mr. Klein. “With nonperforming assets declining compared to the linked quarter and our allowance for credit losses providing coverage of nonperforming loans, our reserve position remains highly conservative. We remain committed to diligent underwriting and proactive risk management to protect the balance sheet as we support measured loan expansion across our markets.”

Nonperforming Assets	Reconcile to 10-Q															Annual Change
($ in thousands, except ratios)	Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Jun. 2025
Commercial & Agriculture	$	1,304		$	1,359		$	2,256		$	2,243		$	3,306		$	(2,002	)
% of Total Com./Ag. loans		0.68	%		0.71	%		1.18	%		1.23	%		1.84	%		-60.6	%
Commercial RE		339			668			771			778			784			(445	)
% of Total CRE loans		0.06	%		0.11	%		0.13	%		0.15	%		0.15	%		-56.8	%
Residential RE		1,476			1,439			1,322			1,400			1,585			(109	)
% of Total Res. RE loans		0.50	%		0.48	%		0.43	%		0.45	%		0.51	%		-6.9	%
Consumer & Other		367			233			230			195			197			170
% of Total Con./Oth. loans		0.41	%		0.26	%		0.26	%		0.23	%		0.25	%		86.3	%
Total Nonaccruing Loans		3,486			3,699			4,579			4,616			5,872			(2,386	)
% of Total loans		0.29	%		0.31	%		0.39	%		0.42	%		0.54	%		-40.6	%
Foreclosed Assets and Other Assets		936			974			104			237			284			652
Total Change (%)																N/M
Total Nonperforming Assets	$	4,422		$	4,673		$	4,683		$	4,853		$	6,156		$	(1,734	)
% of Total assets		0.27	%		0.29	%		0.30	%		0.32	%		0.41	%		-28.17	%

Webcast and Conference Call

The Company will hold the second quarter 2026 earnings conference call and webcast on July 24, 2026, at 11:00 a.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. 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 which 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)		2026				2026				2025				2025				2025
ASSETS
Cash and due from banks	$	138,152			$	126,293			$	71,543			$	85,025			$	79,463
Interest bearing time deposits		2,455				1,965				1,140				2,025				1,565
Available-for-sale securities		179,026				183,626				188,626				193,190				195,955
Loans held for sale		7,438				7,203				1,761				4,736				12,774
Loans, net of unearned income		1,189,559				1,181,135				1,180,591				1,110,545				1,094,719
Allowance for credit losses		(16,395	)			(16,388	)			(16,114	)			(15,943	)			(15,645	)
Premises and equipment, net		21,088				21,295				21,688				21,764				21,857
Federal Reserve and FHLB Stock, at cost		5,502				5,463				5,610				5,466				5,466
Foreclosed assets		936				974				104				237				284
Interest receivable		5,455				5,499				5,490				5,455				5,299
Goodwill		27,158				27,158				27,158				27,158				27,158
Cash value of life insurance		32,354				32,401				32,208				32,004				31,060
Mortgage servicing rights		15,953				15,728				15,254				15,347				15,458
Other assets		11,383				12,246				10,308				9,254				10,888
Total assets	$	1,620,064			$	1,604,598			$	1,545,367			$	1,496,263			$	1,486,301
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing demand	$	258,576			$	248,239			$	254,063			$	246,725			$	241,245
Interest bearing demand		206,593				215,594				202,501				194,420				205,581
Savings		325,675				333,662				296,484				290,111				282,311
Money market		315,363				300,028				280,896				261,953				249,536
Time deposits		284,940				274,300				273,300				269,313				271,149
Total deposits		1,391,147				1,371,823				1,307,244				1,262,522				1,249,822
Short-term borrowings		6,732				9,433				9,230				10,976				15,640
Federal Home Loan Bank advances		22,500				27,500				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		19,763				19,751				19,739				19,726				19,715
Interest payable		2,470				2,553				2,460				2,739				2,258
Other liabilities		20,402				19,573				20,148				18,051				19,908
Total liabilities		1,473,324				1,460,943				1,404,131				1,359,324				1,352,653
Shareholders' Equity
Common stock		61,319				61,319				61,319				61,319				61,319
Additional paid-in capital		15,275				15,065				15,160				15,086				15,139
Retained earnings		133,125				129,631				126,311				123,370				120,273
Accumulated other comprehensive loss		(21,854	)			(21,861	)			(21,481	)			(23,412	)			(25,492	)
Treasury stock		(41,125	)			(40,499	)			(40,073	)			(39,424	)			(37,591	)
Total shareholders' equity		146,740				143,655				141,236				136,939				133,648
Total liabilities and shareholders' equity	$	1,620,064			$	1,604,598			$	1,545,367			$	1,496,263			$	1,486,301

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		2026				2026				2025				2025				2025				2026				2025
Loans
Taxable		$	17,498			$	17,246			$	17,234			$	16,449			$	16,059			$	34,744			$	31,303
Tax exempt		98				99				107				117				116				197				231
Securities
Taxable		1,006				1,029				1,096				1,097				1,133				2,035				2,302
Tax exempt		36				36				36				35				35				72				73
Other interest income		1,182				897				799				1,111				1,124				2,079				1,930
Total interest income		19,820				19,307				19,272				18,809				18,467				39,127				35,839
Interest expense
Deposits		6,237				5,957				5,820				5,721				5,597				12,194				10,949
Repurchase agreements & other		7				14				22				28				21				21				45
Federal Home Loan Bank advances		234				285				370				369				366				519				728
Trust preferred securities		145				144				154				162				161				289				321
Subordinated debt		243				195				194				195				194				438				389
Total interest expense		6,866				6,595				6,560				6,475				6,339				13,461				12,432
Net interest income		12,954				12,712				12,712				12,334				12,128				25,666				23,407
Provision for credit losses		299				214				198				124				597				513				984
Net interest income after provision
for credit losses		12,655				12,498				12,514				12,210				11,531				25,153				22,423
Noninterest income
Wealth management fees		955				941				900				912				859				1,896				1,723
Customer service fees		917				910				892				887				886				1,827				1,765
Gain on sale of mtg. loans & OMSR		1,541				978				1,272				1,328				1,566				2,519				2,415
Mortgage loan servicing fees, net		383				851				199				158				594				1,234				1,205
Gain on sale of non-mortgage loans		62				144				38				8				82				206				97
Title insurance revenue		577				485				525				544				582				1,062				979
Gain (loss) on sale of assets			(9	)		8				-				-				-					(1	)		-
Other		561				395					(118	)		407				479				956				971
Total noninterest income		4,987				4,712				3,708				4,244				5,048				9,699				9,155
Noninterest expense
Salaries and employee benefits		7,005				6,096				6,047				6,198				6,595				13,101				12,832
Net occupancy expense		802				882				822				801				793				1,684				1,686
Equipment expense		1,226				1,244				1,154				1,188				1,121				2,470				2,193
Data processing fees		693				726				790				723				888				1,419				2,327
Professional fees		844				1,016				805				863				892				1,860				1,926
Marketing expense		255				277				122				174				190				532				355
Telephone and communication expense		126				118				124				123				125				244				264
Postage and delivery expense		146				187				140				157				107				333				244
State, local and other taxes		221				288				331				268				268				509				492
Employee expense		177				184				158				255				176				361				350
Other expenses		642				911				746				748				697				1,553				1,593
Total noninterest expense		12,137				11,929				11,239				11,498				11,852				24,066				24,262
Income before income tax expense		5,505				5,281				4,983				4,956				4,727				10,786				7,316
Income tax expense		1,008				985				1,065				910				875				1,993				1,306
Net income		$	4,497			$	4,296			$	3,918			$	4,046			$	3,852			$	8,793			$	6,010
Common share data:
Basic earnings per common share		$	0.72			$	0.69			$	0.63			$	0.64			$	0.60			$	1.41			$	0.93
Diluted earnings per common share		$	0.72			$	0.69			$	0.63			$	0.64			$	0.60			$	1.41			$	0.93
Average shares outstanding (in thousands):
Basic:		6,205				6,230				6,252				6,297				6,448				6,218				6,464
Diluted:		6,220				6,243				6,266				6,311				6,459				6,233				6,483

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			2026				2026				2025				2025				2025				2026				2025
Net interest income		$	12,954			$	12,712			$	12,712			$	12,334			$	12,128			$	25,666			$	23,407
Tax-equivalent adjustment			36				36				38				40				40				72				81
Tax-equivalent net interest income			12,990				12,748				12,750				12,374				12,168				25,738				23,488
Provision for credit loss			299				214				198				124				597				513				984
Noninterest income			4,987				4,712				3,708				4,244				5,048				9,699				9,155
Total operating revenue			17,941				17,424				16,420				16,578				17,176				35,365				32,562
Noninterest expense			12,137				11,929				11,239				11,498				11,852				24,066				24,262
Pre-tax pre-provision income			5,804				5,495				5,181				5,080				5,324				11,299				8,300
Net income			4,497				4,296				3,918				4,046				3,852				8,793				6,010
PER SHARE INFORMATION:
Basic earnings per share (EPS)			0.72				0.69				0.63				0.64				0.60				1.41				0.93
Diluted earnings per share			0.72				0.69				0.63				0.64				0.60				1.41				0.93
Common dividends			0.160				0.155				0.155				0.150				0.150				0.315				0.295
Book value per common share			23.70				23.10				22.65				21.85				21.02				23.70				21.02
Tangible book value per common share (TBV)			19.04				18.45				18.00				17.21				16.44				19.04				16.44
Market price per common share			25.27				21.00				22.27				19.29				19.10				25.27				19.10
Market price to TBV			132.7	%			113.8	%			123.7	%			112.1	%			116.2	%			132.7	%			116.2	%
Market price to trailing 12 month EPS			9.4				8.2				10.1				9.1				10.4				9.4				10.4
PERFORMANCE RATIOS:
Return on average assets (ROAA)			1.12	%			1.10	%			1.01	%			1.07	%			1.03	%			1.11	%			0.82	%
Pre-tax pre-provision ROAA			1.45	%			1.41	%			1.34	%			1.34	%			1.42	%			1.52	%			1.21	%
Return on average equity (ROE)			12.44	%			12.04	%			11.08	%			12.08	%			11.67	%			12.24	%			9.19	%
Return on average tangible equity			15.53	%			15.06	%			13.97	%			15.47	%			14.97	%			15.30	%			11.64	%
Efficiency ratio			67.32	%			68.12	%			68.09	%			69.00	%			68.90	%			67.72	%			74.14	%
Earning asset yield			5.26	%			5.29	%			5.32	%			5.31	%			5.29	%			5.26	%			5.25	%
Cost of interest bearing liabilities			2.34	%			2.31	%			2.34	%			2.33	%			2.33	%			2.31	%			2.30	%
Net interest margin			3.43	%			3.48	%			3.51	%			3.48	%			3.48	%			3.45	%			3.43	%
Tax equivalent effect			0.01	%			0.01	%			0.01	%			0.02	%			0.01	%			0.01	%			0.01	%
Net interest margin, tax equivalent			3.44	%			3.49	%			3.52	%			3.50	%			3.49	%			3.46	%			3.44	%
Non interest income/Average assets			1.24	%			1.21	%			0.96	%			1.12	%			1.35	%			1.23	%			1.25	%
Non interest expense/Average assets			3.03	%			3.06	%			2.90	%			3.04	%			3.17	%			3.04	%			3.31	%
Net noninterest expense/Average assets			-1.78	%			-1.85	%			-1.94	%			-1.92	%			-1.82	%			-1.82	%			-2.06	%
ASSET QUALITY RATIOS:
Gross charge-offs			196				33				133				11				49				229				135
Recoveries			3				8				3				9				3				10				5
Net charge-offs			193				25				130				2				46				219				130
Nonperforming loans/Total loans			0.29	%			0.31	%			0.39	%			0.42	%			0.54	%			0.29	%			0.54	%
Nonperforming assets/Loans & OREO			0.37	%			0.40	%			0.40	%			0.44	%			0.56	%			0.37	%			0.56	%
Nonperforming assets/Total assets			0.27	%			0.29	%			0.30	%			0.32	%			0.41	%			0.27	%			0.41	%
Allowance for credit loss/Nonperforming loans			470.31	%			443.04	%			351.91	%			345.39	%			266.43	%			470.31	%			266.43	%
Allowance for credit loss/Total loans			1.38	%			1.39	%			1.36	%			1.44	%			1.43	%			1.38	%			1.43	%
Net loan charge-offs/Average loans (ann.)			0.06	%			0.01	%			0.04	%			0.00	%			0.02	%			0.04	%			0.02	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits			85.51	%			86.10	%			90.31	%			87.96	%			87.59	%			85.51	%			87.59	%
Equity/ Assets			9.06	%			8.95	%			9.14	%			9.15	%			8.99	%			9.06	%			8.99	%
Tangible equity/Tangible assets			7.41	%			7.28	%			7.40	%			7.35	%			7.17	%			7.41	%			7.17	%
Common equity tier 1 ratio (Bank)			12.07	%			12.11	%			11.78	%			12.48	%			12.53	%			12.07	%			12.53	%
END OF PERIOD BALANCES
Total assets			1,620,064				1,604,598				1,545,367				1,496,263				1,486,301				1,620,064				1,486,301
Total loans			1,189,559				1,181,135				1,180,591				1,110,545				1,094,719				1,189,559				1,094,719
Deposits			1,391,147				1,371,823				1,307,244				1,262,522				1,249,822				1,391,147				1,249,822
Shareholders equity			146,740				143,655				141,236				136,939				133,648				146,740				133,648
Goodwill and intangibles			28,870				28,929				28,989				29,048				29,107				28,870				29,107
Tangible equity			117,870				114,726				112,247				107,891				104,541				117,870				104,541
Mortgage servicing portfolio			1,504,657				1,482,052				1,479,982				1,470,360				1,456,374				1,504,657				1,456,374
Wealth/Brokerage assets under care			556,930				556,930				566,004				563,036				536,836				556,930				536,836
Total assets under care			3,681,651				3,643,580				3,591,353				3,529,659				3,479,511				3,681,651				3,479,511
Full-time equivalent employees			258				258				252				253				256				258				256
Period end common shares outstanding			6,191				6,219				6,236				6,268				6,359				6,191				6,359
Market capitalization (all)			156,436				130,597				138,883				120,907				121,453				156,436				121,453
AVERAGE BALANCES
Total assets			1,608,355				1,579,781				1,536,215				1,502,389				1,498,756				1,594,416				1,479,613
Total earning assets			1,512,017				1,479,667				1,436,207				1,404,330				1,399,485				1,498,829				1,377,780
Total loans			1,193,207				1,186,225				1,158,567				1,104,175				1,094,199				1,184,307				1,085,313
Deposits			1,381,439				1,347,351				1,299,512				1,270,783				1,270,798				1,364,852				1,249,885
Shareholders equity			145,034				144,659				140,315				132,866				132,353				144,816				131,849
Goodwill and intangibles			28,899				28,959				29,027				29,077				29,116				28,929				27,742
Tangible equity			116,135				115,700				111,288				103,789				103,237				115,887				104,107
Average basic shares outstanding			6,205				6,230				6,252				6,297				6,448				6,218				6,464
Average diluted shares outstanding			6,220				6,243				6,266				6,311				6,459				6,233				6,483

SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three & Six Months Ended Jun. 30, 2026 and 2025
($ in thousands)		Three Months Ended Jun. 30, 2026									Three Months Ended Jun. 30, 2025
		Average					Average				Average					Average
Assets		Balance			Interest		Rate				Balance			Interest		Rate
Taxable securities		$	182,269		$	1,006	2.21	%			$	198,558		$	1,133	2.29	%
Overnight Cash			131,774			1,182	3.60	%				101,964			1,124	4.42	%
Nontaxable securities			4,767			36	3.03	%				4,764			35	2.95	%
Loans, net			1,193,207			17,596	5.91	%				1,094,199			16,176	5.93	%
Total earning assets			1,512,017			19,820	5.26	%				1,399,485			18,468	5.29	%
Cash on hand			5,464									4,951
Allowance for loan losses			(16,460	)								(15,483	)
Premises and equipment			21,245									21,719
Other assets			86,089									88,084
Total assets		$	1,608,355								$	1,498,756
Liabilities
Savings, MMDA and interest bearing demand		$	836,830		$	3,949	1.89	%			$	740,677		$	3,223	1.75	%
Time deposits			279,469			2,288	3.28	%				276,376			2,374	3.45	%
Repurchase agreements & other			7,357			7	0.38	%				10,518			21	0.80	%
Advances from Federal Home Loan Bank			22,995			234	4.08	%				35,000			366	4.19	%
Trust preferred securities			10,310			145	5.64	%				10,310			161	6.26	%
Subordinated debt			19,755			243	4.93	%				19,707			194	3.95	%
Total interest bearing liabilities			1,176,716			6,866	2.34	%				1,092,588			6,339	2.33	%
Non interest bearing demand			265,140			-						253,745			-
Total funding			1,441,856				1.91	%				1,346,333				1.89	%
							44.20	%							1
Other liabilities			21,465									20,070
Total liabilities			1,463,321									1,366,403
Equity			145,034									132,353
Total liabilities and equity		$	1,608,355								$	1,498,756
Net interest income					$	12,954								$	12,129
Net interest income as a percent of average interest-earning assets - GAAP measure							3.44	%								3.48	%
Net interest income as a percent of average interest-earning assets - non GAAP							3.44	%								3.49	%
- Computed on a fully tax equivalent (FTE) basis
		Six Months Ended Jun. 30, 2026									Six Months Ended Jun. 30, 2025
		Average					Average				Average					Average
Assets		Balance			Interest		Rate				Balance			Interest		Rate
Taxable securities		$	185,421		$	2,035	2.21	%			$	200,968		$	2,302	2.31	%
Overnight Cash			124,334			2,079	3.37	%				86,379			1,930	4.51	%
Nontaxable securities			4,767			72	3.05	%				5,120			73	2.88	%
Loans, net			1,184,307			34,941	5.95	%				1,085,313			31,535	5.86	%
Total earning assets			1,498,829			39,127	5.26	%				1,377,780			35,840	5.25	%
Cash on hand			5,436									4,796
Allowance for loan losses			(16,339	)								(15,361	)
Premises and equipment			21,369									21,403
Other assets			85,121									90,995
Total assets		$	1,594,416								$	1,479,613
Liabilities
Savings, MMDA and interest bearing demand		$	825,713		$	7,646	1.87	%			$	725,729		$	6,182	1.72	%
Time deposits			276,666			4,548	3.31	%				276,315			4,767	3.48	%
Repurchase agreements & Other			8,673			21	0.49	%				11,805			45	0.77	%
Advances from Federal Home Loan Bank			25,566			519	4.09	%				35,022			728	4.19	%
Trust preferred securities			19,749			289	2.95	%				19,701			321	3.29	%
Subordinated debt			19,713			438	4.48	%				19,665			389	3.99	%
Total interest bearing liabilities			1,176,080			13,461	2.31	%				1,088,237			12,432	2.30	%
Non interest bearing demand			262,473				1.89	%				247,841				1.88	%
Total funding			1,438,553									1,336,078
Other liabilities			11,047									11,686
Total liabilities			1,449,600									1,347,764
Equity			144,816									131,849
Total liabilities and equity		$	1,594,416								$	1,479,613
Net interest income					$	25,666								$	23,408
Net interest income as a percent of average interest-earning assets - GAAP measure							3.45	%								3.43	%
Net interest income as a percent of average interest-earning assets - non GAAP							3.46	%								3.44	%
- 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, 2026				Jun. 30, 2025				Jun. 30, 2026				Jun. 30, 2025
Total Operating Revenue		$	17,941			$	17,176			$	35,365			$	32,562
Adjustment to (deduct)/add OMSR recapture/impairment *			54				(159	)			(398	)			(170	)
Adjusted Total Operating Revenue			17,995				17,017				34,967				32,392
Total Operating Expense			12,137				11,852				24,066				24,262
Adjustment for merger expenses			-				-				-				(726	)
Adjusted Total Operating Expense			12,137				11,852				24,066				23,536
Income before Income Taxes			5,505				4,727				10,786				7,316
Adjustment for OMSR*/Merger Expenses			54				(159	)			(398	)			556
Adjusted Income before Income Taxes			5,559				4,568				10,388				7,872
Provision for Income Taxes			1,008				875				1,993				1,306
Adjustment for OMSR/Merger Expenses **			11				(33	)			(84	)			117
Adjusted Provision for Income Taxes			1,019				842				1,909				1,423
Net Income			4,497				3,852				8,793				6,010
Adjustment for OMSR*/Merger Expenses			43				(126	)			(314	)			439
Adjusted Net Income			4,540				3,726				8,479				6,449
Diluted Earnings per Share			0.72				0.60				1.41				0.93
Adjustment for OMSR*/Merger Expenses			0.01				(0.02	)			(0.05	)			0.07
Adjusted Diluted Earnings per Share		$	0.73			$	0.58			$	1.36			$	0.99
Return on Average Assets			1.12	%			1.03	%			1.11	%			0.82	%
Adjustment for OMSR*/Merger Expenses			0.01	%			-0.03	%			-0.04	%			0.03	%
Adjusted Return on Average Assets			1.13	%			1.00	%			1.07	%			0.85	%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate

FAQ

How did SB Financial Group (NASDAQ: SBFG) perform in Q2 2026?

SB Financial reported Q2 2026 net income of $4.5 million and diluted EPS of $0.72, both higher year over year. According to SB Financial, net income rose 16.7% and diluted EPS increased 20.0% compared with the second quarter of 2025.

What were SBFG’s loan and deposit balances as of June 30, 2026?

As of June 30, 2026, SB Financial reported $1.19 billion in total loans and $1.39 billion in total deposits. According to SB Financial, loans grew 8.7% and deposits increased 11.3% year over year, marking the ninth consecutive quarter of loan portfolio expansion.

How did SBFG’s earnings for the first six months of 2026 compare to 2025?

For the first six months of 2026, SB Financial generated net income of $8.8 million and diluted EPS of $1.41. According to SB Financial, this represents a 46.3% increase in net income and a 51.6% rise in diluted EPS versus the same period in 2025.

What was SB Financial Group’s asset quality like at June 30, 2026?

At June 30, 2026, SB Financial reported nonperforming assets of $4.4 million, or 0.27% of total assets. According to SB Financial, the allowance for credit losses was 1.38% of total loans, covering 470.2% of nonperforming loans and improving from the prior year.

How did SBFG’s net interest income and margin trend in Q2 2026?

In Q2 2026, SB Financial’s net interest income was $13.0 million, up 6.8% year over year. According to SB Financial, net interest margin declined about 5 basis points to 3.43%, as higher interest income on loans was offset by increased interest expense on deposits and other funding.

What changes occurred in SBFG’s tangible book value per share in Q2 2026?

Tangible book value per common share reached $19.04 at June 30, 2026, up from $16.44 a year earlier. According to SB Financial, this 15.8% year-over-year increase reflects earnings growth and capital accretion, with adjusted tangible book value excluding AOCI reported at $22.57 per share.

Did SB Financial Group (SBFG) repurchase shares during Q2 2026?

Yes, SB Financial repurchased approximately 28,000 shares during the second quarter of 2026. According to SB Financial, this activity was roughly flat versus the linked quarter and reflects a measured capital allocation approach balancing buybacks, dividends, organic growth, strategic initiatives, and capital stability.