• SB Financial Group Announces Third Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 24 Oct 2024 16:15:01   America/New_York

    DEFIANCE, Ohio, Oct. 24, 2024 (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 third quarter ended September 30, 2024.

    Third Quarter 2024 Highlights compared to the third quarter of the prior year:

    • Net income of $2.4 million, down 12.4 percent with Diluted Earnings Per Share (“EPS”) of $0.35. EPS is up 3.0% when adjusted for mortgage servicing rights impairment in both periods.
    • Net interest income totaled $10.2 million, a 6.8 percent increase from $9.5 million.
    • Total loans increased to $1.03 billion, up by $40.9 million or 4.1 percent.
    • Tangible book value per share ended the quarter at $16.49, up $3.40 per share or 26.0%.

    Nine Months Ended September 30, 2024, highlights over prior-year nine months include:

    • Mortgage Banking Revenue increased to $4.7 million, up by 7.6 percent from $4.4 million.
    • Noninterest income increased 2.2% to $12.5 million, up from $12.2 million.
    • Noninterest expense increased 1.1% to $32.0 million, up from $31.6 million.

    Trailing Twelve Months Ended September 30, 2024, highlights compared to the prior year:

    • Diluted EPS was $1.74 for the twelve months ended September 2024, reflecting a 3.6% increase from the prior twelve months of $1.68.
    • Total deposits reached $1.16 billion by the end of September 2024, marking a 6.8% growth from $1.09 billion at the same time in 2023.
    • Mortgage origination volume was $228.3 million for the trailing twelve months, while the servicing portfolio increased by 2.9% to $1.41 billion.
    Earnings HighlightsThree Months Ended Nine Months Ended
    ($ in thousands, except per share & ratios)Sep. 2024Sep. 2023% Change Sep. 2024Sep. 2023% Change
    Operating revenue$14,309 $13,699 4.5% $41,485 $41,879 -0.9%
    Interest income 16,548  14,796 11.8%  47,502  43,026 10.4%
    Interest expense 6,362  5,260 21.0%  18,477  13,337 38.5%
    Net interest income 10,186  9,536 6.8%  29,025  29,689 -2.2%
    Provision (recovery) for credit losses 200  (6)3433.3%  200  389 -48.6%
    Noninterest income 4,123  4,163 -1.0%  12,460  12,190 2.2%
    Noninterest expense 11,003  10,481 5.0%  31,956  31,593 1.1%
    Net income 2,354  2,687 -12.4%  7,835  8,212 -4.6%
    Earnings per diluted share 0.35  0.39 -10.3%  1.17  1.18 -0.8%
    Return on average assets 0.68% 0.80%-15.0%  0.77% 0.81%-4.9%
    Return on average equity 7.32% 8.73%-16.2%  8.41% 8.72%-3.6%
            

    "We delivered strong operational performance during the September quarter with our pretax preprovision earnings up over 14% when we adjust for the servicing rights impairment," stated Mark A. Klein, Chairman, President, and CEO. "We are on track with our Marblehead acquisition and are especially pleased that we have increased the tangible book value per share by 26% in the last year."

    "Our Loan Book expanded to $1.03 billion, an increase of $40.9 million, underscoring our disciplined approach to portfolio expansion. Despite market pressures from interest rates, our deposits increased by $74.2 million or 6.8% year-over-year reaching $1.16 billion," added Mr. Klein.

    RESULTS OF OPERATIONS

    Consolidated Revenue

    In the third quarter of 2024, core earnings and margins rose with operating revenue rising to $14.3 million, a 4.5% increase from the $13.7 million in the prior year. While net interest income rose to $10.2 million, a 6.8% increase year-over-year, the Company faced pressure from rising deposit costs, which drove a 21% increase in interest expenses. Despite this, net interest margin saw a slight expansion, increasing by 9 basis points compared to the same period last year, reaching 3.17%.

    Noninterest income was down 1.0%, however, when adjusted for the servicing rights impairment and the gain on sale of assets, it was up nearly 4%. Mortgage gain on sale had its best quarter since the first quarter of 2022 and we saw solid increases in Title insurance revenue (up 13%) and Wealth management revenue (up 5%).

    Mortgage Loan Business

    In the third quarter of 2024, SB Financial Group recorded a 15.5% year-over-year increase in mortgage loan originations, reaching $70.7 million, up from $61.2 million in the corresponding period last year. This strong performance reflects our ability to capitalize on favorable market conditions and underscores the resilience of the housing sector, which continues to show signs of strength despite broader economic challenges. Mortgage sales followed this growth, reaching $61.3 million, or 86.6% of total originations. This represents a 13.3% year-over-year increase from $54.1 million, signaling our ongoing success in expanding our market reach and maintaining a competitive position. The sales volume highlights the robustness of our operations, even as competition intensifies in the residential lending space.

    However, mortgage banking net revenue decreased to $1.35 million, down 17.9% from $1.65 million in the prior year. This decline was primarily driven by a negative Originated Mortgage Servicing Rights (“OMSR”) valuation adjustment of $465 thousand this quarter, significantly impacting net loan servicing fees. This reflects broader market headwinds, including shifts in borrower behavior and refinancing rates, which put pressure on servicing valuations. Despite this, gains from the sale of mortgages and continued efficiency in our operations helped partially offset the decline. The mortgage servicing portfolio expanded by 2.9%, reaching $1.41 billion. This steady growth in our servicing portfolio is a testament to our commitment to building long-term, sustainable relationships.

    Mr. Klein stated, "This quarter has showcased improved efficiency in our mortgage operations. Although our results slightly missed our internal targets, the shortfall primarily reflects the heightened competitiveness and shifting dynamics within the mortgage market. Despite these challenges, our proactive measures, including expanding our origination teams, including closing our first loan from the Cincinnati market, have positioned us to capitalize on market opportunities and maintain our momentum."

    Mortgage Banking       
    ($ in thousands)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023 Prior Year Growth
    Mortgage originations$70,715 $75,110 $42,912 $39,566 $61,200  $9,515 
    Mortgage sales 61,271  55,835  36,623  33,362  54,085   7,186 
    Mortgage servicing portfolio 1,406,273  1,389,805  1,371,713  1,366,667  1,367,209   39,064 
    Mortgage servicing rights 14,357  14,548  14,191  13,906  13,893   464 
            
            
    Revenue       
    Loan servicing fees 874  862  855  855  850   24 
    OMSR amortization (370) (335) (273) (282) (334)  (36)
    Net administrative fees 504  527  582  573  516   (12)
    OMSR valuation adjustment (465) 38  181  (12) (78)  (387)
    Net loan servicing fees 39  565  763  561  438   (399)
    Gain on sale of mortgages 1,311  1,277  781  747  1,207   104 
    Mortgage banking revenue, net$ 1,350 $ 1,842 $ 1,544 $ 1,308 $ 1,645  $ (295)
            

    Noninterest Income and Noninterest Expense

    For the third quarter of 2024, SB Financial Group's noninterest income slightly declined to $4.12 million, representing a 1.0% decrease compared to $4.16 million in the third quarter of 2023. This minor reduction was primarily driven by lower mortgage loan servicing fees, which fell from $438 thousand in the third quarter of 2023 to $39 thousand in the third quarter of 2024, reflecting significant pressure in the mortgage servicing market. Furthermore, other noninterest income also contributed to the decline. However, this was partially offset by an increase in wealth management fees, which rose by 5.4% to $882 thousand, and a gain on the sale of mortgage loans and OMSR, which increased to $1.31 million from $1.21 million in the prior-year quarter. The gain on the sale of assets further contributed positively with $200 thousand realized this quarter.

    Noninterest expenses for the third quarter were reported at $11.0 million, reflecting a 5.0% increase compared to $10.5 million in the third quarter of 2023. This rise was primarily driven by the increase of additional talent, which rose by 10.3% to $6.06 million, along with a 17% increase in data processing fees to $758 thousand. While certain expense categories saw reductions, such as other expenses, which decreased to $804 thousand from $1.1 million in the prior year, these declines were not sufficient enough to offset the overall increase in operating expenses.

    Noninterest Income/Noninterest Expense       
    ($ in thousands, except ratios) Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023 Prior Year Growth
    Noninterest Income (NII) $4,123 $4,386 $3,951 $5,531 $4,163  $(40)
    NII / Total Revenue  28.8% 31.5% 30.1% 36.6% 30.4%  -1.6%
    NII / Average Assets  1.2% 1.3% 1.2% 1.7% 1.2%  0.0%
    Total Revenue Growth  4.5% -0.6% -6.1% 3.4% -5.3%  -0.9%
             
    Noninterest Expense (NIE) $11,003 $10,671 $10,282 $10,369 $10,481  $522 
    Efficiency Ratio  76.8% 75.9% 78.2% 68.4% 79.0%  -2.2%
    NIE / Average Assets  3.2% 3.2% 3.1% 3.1% 3.1%  0.1%
    Net Noninterest Expense/Avg. Assets -2.0% -1.9% -1.9% -1.4% -1.9%  -0.1%
    Total Expense Growth  5.0% 3.2% -4.6% 1.0% 0.9%  5.0%
             

    Mr. Klein commented on the financial performance, stating, "Our noninterest income continues to show resilience, supported by gains from mortgage-related activities and consistent wealth management performance. As expected, the competitive environment and market fluctuations impacted servicing fees. On the expense side, our focus remains on managing costs related to growth initiatives, and we are committed to optimizing our cost structure to maintain operational efficiency and deliver sustained value to our stakeholders."

    Balance Sheet

    As of September 30, 2024, SB Financial Group continued to demonstrate financial stability, with total assets increasing to $1.39 billion, a 5.1% increase from $1.33 billion at the end of the prior-year period. This growth underscores our ability to maintain a robust financial position amidst changing market conditions.

    Our loan portfolio remained strong, standing at $1.03 billion, up by $40.9 million or 4.1% compared to the prior year. This growth highlights our effective lending practices and strong demand in the credit market. Additionally, cash and cash equivalents increased significantly to $49.3 million, up 159.1% from $19.0 million a year ago, enhancing our liquidity position and providing us with greater flexibility in navigating economic uncertainties.

    Deposits increased to $1.16 billion, reflecting a 6.8% growth compared to the prior-year figure of $1.09 billion, driven by increases across all interest-bearing deposit categories. This growth reflects continued trust from our clients and a solid base to support ongoing operations.

    Shareholders’ equity expanded significantly to $132.8 million, a 5.9% increase from the linked quarter and an 18.2% year-over-year rise, underscoring our commitment to driving shareholder value. This improvement can be attributed to retained earnings growth and an improvement in accumulated comprehensive losses. The year-over-year growth in shareholders' equity reflects our focus on strengthening the balance sheet and optimizing capital allocation strategies.

    Mr. Klein, commented, "In 2024, we have maintained a disciplined and proactive approach to our growth and capital management, aligning closely with our strategic objectives. Our ability to sustain and grow our loan portfolio, even in a highly competitive market, demonstrates the resilience of our business model and the effectiveness of our relationship-driven lending practices. Furthermore, the year-over-year increase in shareholders' equity highlights our continued commitment to delivering shareholder value. We remain poised to leverage future opportunities that will further fortify our financial position and ensure long-term prosperity for our stakeholders."

    Loan Balances      
    ($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023Annual Growth
    Commercial$123,821 $123,287 $120,016 $126,716 $120,325 $3,496 
    % of Total 12.0% 12.3% 12.1% 12.7% 12.2% 2.9%
    Commercial RE 459,449  434,967  429,362  424,041  421,736  37,713 
    % of Total 44.6% 43.3% 43.3% 42.4% 42.6% 8.9%
    Agriculture 64,887  64,329  62,365  65,659  60,928  3,959 
    % of Total 6.3% 6.4% 6.3% 6.6% 6.2% 6.5%
    Residential RE 314,010  316,233  314,668  318,123  320,306  (6,296)
    % of Total 30.5% 31.5% 31.7% 31.8% 32.4% -2.0%
    Consumer & Other 67,788  66,574  65,141  65,673  65,726  2,062 
    % of Total 6.6% 6.6% 6.6% 6.6% 6.6% 3.1%
    Total Loans$ 1,029,955 $ 1,005,390 $ 991,552 $ 1,000,212 $ 989,021 $ 40,934 
    Total Growth Percentage     4.1%
           
           
    Deposit Balances      
    ($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023Annual Growth
    Non-Int DDA$222,425 $208,244 $219,395 $228,713 $224,182 $(1,757)
    % of Total 19.2% 18.7% 19.7% 21.4% 20.7% -0.8%
    Interest DDA 202,097  190,857  169,171  166,413  174,729  27,368 
    % of Total 17.4% 17.1% 15.2% 15.5% 16.1% 15.7%
    Savings 241,761  231,855  244,157  216,965  226,077  15,684 
    % of Total 20.8% 20.8% 21.9% 20.3% 20.8% 6.9%
    Money Market 228,182  225,650  221,362  202,605  216,565  11,617 
    % of Total 19.7% 20.2% 19.9% 18.9% 20.0% 5.4%
    Time Deposits 265,068  258,582  258,257  255,509  243,766  21,302 
    % of Total 22.9% 23.2% 23.2% 23.9% 22.5% 8.7%
    Total Deposits$ 1,159,533 $ 1,115,188 $ 1,112,342 $ 1,070,205 $ 1,085,319 $ 74,214 
    Total Growth Percentage     6.8%
           

    Asset Quality

    SB Financial Group's commitment to maintaining exceptional asset quality remained strong through the third quarter of 2024. As of September 2024, nonperforming loans constituted 0.54% of total loans, an increase from 0.47% in the prior quarter. While the allowance for credit losses coverage stood at 276.8% of nonperforming loans—below the 330% reported in the linked quarter—it remains robust, signaling a conservative approach to risk management.

    Additionally, the net loan charge-offs to average loans ratio was a modest 0.01%, further highlighting SB Financial Group’s effective loan repayment management. Collectively, these metrics reinforce our reputation for disciplined risk oversight and credit administration.

    Mr. Klein concluded, “Our third quarter performance underscores our continued commitment to maintaining high asset quality. Although we observed a slight increase in nonperforming loans and a decrease in our reserve coverage ratio, our allowance for credit losses remains robust. This, coupled with our disciplined approach to credit risk management, demonstrates our focus on preserving the long-term strength of our loan portfolio and ensuring stability amidst ongoing economic shifts."

           
    Nonperforming Assets     Annual
    Change
    ($ in thousands, except ratios)Sep. 2024Jun. 2024Mar. 2024Dec. 2023Sep. 2023
    Commercial & Agriculture$2,899 $2,781 $897 $748 $717 $2,182 
    % of Total Com./Ag. loans 1.54% 1.48% 0.49% 0.39% 0.40% 304.3%
    Commercial RE 813  475  49  168  222  591 
    % of Total CRE loans 0.18% 0.11% 0.01% 0.04% 0.05% 266.2%
    Residential RE 1,536  1,247  1,295  1,690  2,182  (646)
    % of Total Res. RE loans 0.49% 0.39% 0.41% 0.53% 0.68% -29.6%
    Consumer & Other 270  231  193  212  208  62 
    % of Total Con./Oth. loans 0.40% 0.35% 0.30% 0.32% 0.32% 29.8%
    Total Nonaccruing Loans 5,518  4,734  2,434  2,818  3,329  2,189 
    % of Total loans 0.54% 0.47% 0.25% 0.28% 0.34% 65.8%
    Foreclosed Assets and Other Assets -  510  510  511  629  (629)
    Total Change (%)      -100.0%
    Total Nonperforming Assets$5,518 $5,244 $2,944 $3,329 $3,958 $1,560 
    % of Total assets 0.40% 0.39% 0.22% 0.25% 0.30% 39.41%
           

    Webcast and Conference Call

    The Company will hold the third quarter 2024 earnings conference call and webcast on October 25, 2024, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

    About SB Financial Group

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

    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)
                  
         September June March December September
       ($ in thousands)  2024   2024   2024   2023   2023 
                  
    ASSETS          
     Cash and due from banks $49,348  $21,983  $26,602  $22,965  $19,049 
     Interest bearing time deposits  1,706   2,417   2,417   1,535   1,180 
     Available-for-sale securities  211,511   207,856   213,239   219,708   212,768 
     Loans held for sale  8,927   7,864   4,730   2,525   3,206 
     Loans, net of unearned income  1,029,955   1,005,390   991,552   1,000,212   989,021 
     Allowance for credit losses  (15,278)  (15,612)  (15,643)  (15,786)  (15,790)
     Premises and equipment, net  20,715   20,860   20,985   21,378   21,934 
     Federal Reserve and FHLB Stock, at cost  5,223   5,204   6,512   7,279   6,261 
     Foreclosed assets and other assets  -   510   510   511   629 
     Interest receivable  4,842   4,818   3,706   4,657   6,673 
     Goodwill  23,239   23,239   23,239   23,239   23,239 
     Cash value of life insurance  30,488   30,294   30,103   29,121   29,291 
     Mortgage servicing rights  14,357   14,548   14,191   13,906   13,893 
     Other assets  8,916   12,815   13,869   11,999   15,120 
                  
       Total assets $1,393,949  $1,342,186  $1,336,012  $1,343,249  $1,326,474 
                  
                  
                  
    LIABILITIES AND SHAREHOLDERS' EQUITY          
     Deposits          
      Non interest bearing demand $222,425  $208,244  $219,395  $228,713  $224,182 
      Interest bearing demand  202,097   190,857   169,171   166,413   174,729 
      Savings  241,761   231,855   244,157   216,965   226,077 
      Money market  228,182   225,650   221,362   202,605   216,565 
      Time deposits  265,068   258,582   258,257   255,509   243,766 
                  
       Total deposits  1,159,533   1,115,188   1,112,342   1,070,205   1,085,319 
                  
     Short-term borrowings  15,240   15,178   12,916   13,387   16,519 
     Federal Home Loan Bank advances  35,000   35,000   35,000   83,600   59,500 
     Trust preferred securities  10,310   10,310   10,310   10,310   10,310 
     Subordinated debt net of issuance costs  19,678   19,666   19,654   19,642   19,630 
     Interest payable  3,374   2,944   2,772   2,443   2,216 
     Other liabilities  17,973   18,421   19,295   19,320   20,632 
                  
       Total liabilities  1,261,108   1,216,707   1,212,289   1,218,907   1,214,126 
                  
     Shareholders' Equity          
      Common stock  61,319   61,319   61,319   61,319   61,319 
      Additional paid-in capital  15,090   15,195   14,978   15,124   15,037 
      Retained earnings  113,515   112,104   109,938   108,486   105,521 
      Accumulated other comprehensive loss  (24,870)  (31,801)  (31,547)  (29,831)  (39,517)
      Treasury stock  (32,213)  (31,338)  (30,965)  (30,756)  (30,012)
                  
       Total shareholders' equity  132,841   125,479   123,723   124,342   112,348 
                  
       Total liabilities and shareholders' equity$1,393,949  $1,342,186  $1,336,012  $1,343,249  $1,326,474 
                  


    SB FINANCIAL GROUP, INC.
    CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
                    
    ($ in thousands, except per share & ratios) At and for the Three Months Ended Nine Months Ended
                    
       September June March December September September September
    Interest income 2024 2024 2024 2023 2023 2024 2023
     Loans              
     Taxable $14,513  $13,883  $13,547  $13,438  $13,128  $41,943  $37,969 
     Tax exempt  127   124   123   124   122   374   359 
     Securities              
     Taxable  1,871   1,610   1,593   1,526   1,507   5,074   4,566 
     Tax exempt  37   37   37   38   39   111   132 
                    
     Total interest income  16,548   15,654   15,300   15,126   14,796   47,502   43,026 
                    
    Interest expense              
     Deposits  5,568   5,208   5,090   4,398   4,194   15,866   10,310 
     Repurchase agreements & other  43   36   34   39   16   113   35 
     Federal Home Loan Bank advances  369   370   613   720   666   1,352   1,883 
     Trust preferred securities  187   187   188   191   189   562   525 
     Subordinated debt  195   194   195   194   195   584   584 
                    
     Total interest expense  6,362   5,995   6,120   5,542   5,260   18,477   13,337 
                    
                    
    Net interest income  10,186   9,659   9,180   9,584   9,536   29,025   29,689 
                    
     Provision for credit losses  200   -   -   (74)  (6)  200   389 
                    
    Net interest income after provision              
      for loan losses  9,986   9,659   9,180   9,658   9,542   28,825   29,300 
                    
    Noninterest income              
     Wealth management fees  882   848   865   838   837   2,595   2,694 
     Customer service fees  870   875   880   844   863   2,625   2,559 
     Gain on sale of mtg. loans & OMSR  1,311   1,277   781   747   1,207   3,369   2,862 
     Mortgage loan servicing fees, net  39   565   763   561   438   1,367   1,540 
     Gain on sale of non-mortgage loans  20   105   10   177   10   135   252 
     Title insurance revenue  485   406   266   378   429   1,157   1,257 
     Net gain on sales of securities  -   -   -   1,453   -   -   - 
     Gain (loss) on sale of assets  200   -   -   16   -   200   4 
     Other  316   310   386   517   379   1,012   1,022 
                    
     Total noninterest income  4,123   4,386   3,951   5,531   4,163   12,460   12,190 
                    
    Noninterest expense              
     Salaries and employee benefits  6,057   6,009   5,352   5,652   5,491   17,418   17,125 
     Net occupancy expense  706   707   769   746   764   2,182   2,350 
     Equipment expense  1,069   1,060   1,077   1,027   1,068   3,206   3,051 
     Data processing fees  758   727   769   680   648   2,254   1,979 
     Professional fees  659   615   758   926   623   2,032   2,098 
     Marketing expense  241   176   197   182   189   614   600 
     Telephone and communication expense  128   156   105   132   124   389   369 
     Postage and delivery expense  145   89   97   167   100   331   265 
     State, local and other taxes  208   230   245   285   218   683   664 
     Employee expense  228   159   178   146   141   565   485 
     Other expenses  804   743   735   426   1,115   2,282   2,607 
                    
     Total noninterest expense  11,003   10,671   10,282   10,369   10,481   31,956   31,593 
                    
                    
    Income before income tax expense  3,106   3,374   2,849   4,820   3,224   9,329   9,897 
                    
     Income tax expense  752   261   481   937   537   1,494   1,685 
                    
    Net income  $2,354  $3,113  $2,368  $3,883  $2,687  $7,835  $8,212 
                    
    Common share data:              
     Basic earnings per common share $0.35  $0.47  $0.35  $0.58  $0.40  $1.17  $1.20 
                    
     Diluted earnings per common share $0.35  $0.47  $0.35  $0.57  $0.39  $1.17  $1.18 
                    
    Average shares outstanding (in thousands):              
     Basic:  6,660   6,692   6,715   6,748   6,791   6,689   6,857 
     Diluted:  6,675   6,700   6,723   6,851   6,878   6,704   6,944 
                    


    SB FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
                   
    ($ in thousands, except per share & ratios)At and for the Three Months Ended Nine Months Ended
                   
      September June March December September September September
    SUMMARY OF OPERATIONS 2024 2024 2024 2023 2023 2024 2023
                   
    Net interest income $10,186  $9,659  $9,180  $9,584  $9,536  $29,025  $29,689 
    Tax-equivalent adjustment  44   43   43   43   43   129   88 
    Tax-equivalent net interest income  10,230   9,702   9,223   9,627   9,579   29,154   29,777 
    Provision for credit loss  200   -   -   (74)  (6)  200   389 
    Noninterest income  4,123   4,386   3,951   5,531   4,163   12,460   12,190 
    Total operating revenue  14,309   14,045   13,131   15,115   13,699   41,485   41,879 
    Noninterest expense  11,003   10,671   10,282   10,369   10,481   31,956   31,593 
    Pre-tax pre-provision income  3,306   3,374   2,849   4,746   3,218   9,529   10,286 
    Net income  2,354   3,113   2,368   3,883   2,687   7,835   8,212 
                   
    PER SHARE INFORMATION:              
    Basic earnings per share (EPS)  0.35   0.47   0.35   0.58   0.40   1.17   1.20 
    Diluted earnings per share  0.35   0.47   0.35   0.57   0.39   1.17   1.18 
    Common dividends  0.140   0.140   0.135   0.135   0.130   0.415   0.385 
    Book value per common share  20.05   18.80   18.46   18.50   16.59   20.05   16.59 
    Tangible book value per common share (TBV)  16.49   15.26   14.93   14.98   13.09   16.49   13.09 
    Market price per common share  20.56   14.00   13.78   15.35   13.50   20.56   13.50 
    Market price to TBV  124.7%  91.8%  92.3%  102.5%  103.1%  124.7%  103.1%
    Market price to trailing 12 month EPS  11.8   7.9   7.9   8.8   8.0   11.8   8.0 
                   
    PERFORMANCE RATIOS:              
    Return on average assets (ROAA)  0.68%  0.93%  0.71%  1.17%  0.80%  0.77%  0.81%
    Pre-tax pre-provision ROAA  0.96%  1.01%  0.85%  1.43%  0.96%  1.01%  1.10%
    Return on average equity (ROE)  7.32%  10.16%  7.70%  13.23%  9.25%  8.41%  8.72%
    Return on average tangible equity  8.97%  12.59%  9.53%  16.57%  11.62%  10.39%  10.75%
    Efficiency ratio  76.78%  75.86%  78.17%  68.44%  79.00%  76.91%  75.28%
    Earning asset yield  5.16%  5.02%  4.97%  4.89%  4.78%  5.05%  4.61%
    Cost of interest bearing liabilities  2.53%  2.47%  2.55%  2.33%  2.18%  2.52%  1.85%
    Net interest margin  3.17%  3.10%  2.98%  3.10%  3.08%  3.08%  3.18%
    Tax equivalent effect  0.02%  0.01%  0.01%  0.01%  0.01%  0.01%  0.02%
    Net interest margin, tax equivalent  3.19%  3.11%  2.99%  3.11%  3.09%  3.09%  3.20%
    Non interest income/Average assets  1.20%  1.31%  1.19%  1.67%  1.24%  1.23%  1.21%
    Non interest expense/Average assets  3.20%  3.18%  3.08%  3.12%  3.13%  3.15%  3.13%
    Net noninterest expense/Average assets  -2.00%  -1.87%  -1.90%  -1.46%  -1.89%  -1.92%  -1.92%
                   
    ASSET QUALITY RATIOS:              
    Gross charge-offs  29   -   66   5   12   95   113 
    Recoveries  2   16   9   1   7   27   25 
    Net charge-offs  27   (16)  57   4   5   68   88 
    Nonperforming loans/Total loans  0.54%  0.47%  0.25%  0.28%  0.34%  0.54%  0.34%
    Nonperforming assets/Loans & OREO  0.54%  0.52%  0.30%  0.33%  0.40%  0.54%  0.40%
    Nonperforming assets/Total assets  0.40%  0.39%  0.22%  0.25%  0.30%  0.40%  0.30%
    Allowance for credit loss/Nonperforming loans  276.83%  329.78%  642.69%  560.18%  474.32%  276.83%  474.32%
    Allowance for credit loss/Total loans  1.48%  1.55%  1.58%  1.58%  1.60%  1.48%  1.60%
    Net loan charge-offs/Average loans (ann.)  0.01%  (0.01%)  0.02%  0.00%  0.00%  0.01%  0.01%
                   
    CAPITAL & LIQUIDITY RATIOS:              
    Loans/ Deposits  88.82%  90.15%  89.14%  93.46%  91.13%  88.82%  91.13%
    Equity/ Assets  9.53%  9.35%  9.26%  9.26%  8.47%  9.53%  8.47%
    Tangible equity/Tangible assets  7.97%  7.72%  7.63%  7.63%  6.81%  7.97%  6.81%
    Common equity tier 1 ratio (Bank)  13.53%  13.98%  13.84%  13.42%  13.56%  13.53%  13.56%
                   
    END OF PERIOD BALANCES              
    Total assets  1,393,949   1,342,186   1,336,012   1,343,249   1,326,474   1,393,949   1,326,474 
    Total loans  1,029,955   1,005,390   991,552   1,000,212   989,021   1,029,955   989,021 
    Deposits  1,159,533   1,115,188   1,112,342   1,070,205   1,085,319   1,159,533   1,085,319 
    Shareholders equity  132,841   125,479   123,723   124,342   112,348   132,841   112,348 
    Goodwill and intangibles  23,613   23,630   23,646   23,662   23,687   23,613   23,687 
    Tangible equity  109,228   101,849   100,077   100,680   88,661   109,228   88,661 
    Mortgage servicing portfolio  1,406,273   1,389,805   1,371,713   1,366,667   1,367,209   1,406,273   1,367,209 
    Wealth/Brokerage assets under care  557,724   525,713   525,517   501,829   478,236   557,724   478,236 
    Total assets under care  3,357,946   3,257,704   3,233,242   3,211,745   3,171,919   3,357,946   3,171,919 
    Full-time equivalent employees  248   249   245   251   252   248   252 
    Period end common shares outstanding  6,624   6,676   6,702   6,720   6,773   6,624   6,773 
    Market capitalization (all)  136,189   93,458   92,359   103,147   91,437   136,189   91,437 
                   
    AVERAGE BALANCES              
    Total assets  1,376,849   1,342,847   1,333,236   1,327,415   1,339,870   1,350,580   1,344,467 
    Total earning assets  1,283,407   1,246,099   1,230,736   1,236,165   1,239,145   1,255,335   1,243,094 
    Total loans  1,018,262   1,005,018   993,310   992,337   989,089   1,005,577   982,817 
    Deposits  1,145,964   1,120,367   1,091,803   1,084,939   1,095,414   1,119,276   1,098,593 
    Shareholders equity  128,608   122,510   123,058   117,397   116,165   124,218   125,580 
    Goodwill and intangibles  23,621   23,638   23,654   23,675   23,698   23,638   23,720 
    Tangible equity  104,987   98,872   99,404   93,722   92,467   100,580   101,860 
    Average basic shares outstanding  6,660   6,692   6,715   6,748   6,791   6,689   6,857 
    Average diluted shares outstanding  6,675   6,700   6,723   6,851   6,878   6,704   6,944 
                   


    SB FINANCIAL GROUP, INC.
     Rate Volume Analysis - (Unaudited)
     For the Three and Nine Months Ended Sep. 30, 2024 and 2023
           
     ($ in thousands) Three Months Ended Sep. 30, 2024  Three Months Ended Sep. 30, 2023
       Average Average  Average Average
    Assets BalanceInterestRate  BalanceInterestRate
               
     Taxable securities/cash $258,743 $1,8712.89%  $243,261 $1,5072.48%
     Nontaxable securities  6,402  372.31%   6,795  392.30%
     Loans, net  1,018,262  14,6405.75%   989,089  13,2505.36%
               
     Total earning assets  1,283,407  16,5485.16%   1,239,145  14,7964.78%
               
     Cash and due from banks  4,334      4,022   
     Allowance for loan losses  (15,601)     (15,791)  
     Premises and equipment  20,820      22,120   
     Other assets  83,889      90,374   
               
     Total assets $1,376,849     $1,339,870   
               
    Liabilities         
     Savings, MMDA and interest bearing demand$659,879 $2,9691.80%  $620,092 $2,2321.44%
     Time deposits  264,188  2,5993.94%   244,289  1,9623.21%
     Repurchase agreements & other  16,240  431.06%   16,319  160.39%
     Advances from Federal Home Loan Bank  35,054  3694.21%   55,073  6664.84%
     Trust preferred securities  10,310  1877.26%   10,310  1897.33%
     Subordinated debt  19,670  1953.97%   19,622  1953.98%
               
     Total interest bearing liabilities  1,005,341  6,3622.53%   965,705  5,2602.18%
               
     Non interest bearing demand  221,897  -    231,033  - 
               
     Total funding  1,227,238  2.07%   1,196,738  1.76%
         44.20%    1 
     Other liabilities  21,003      26,967   
               
     Total liabilities  1,248,241      1,223,705   
               
     Equity  128,608      116,165   
               
     Total liabilities and equity $1,376,849     $1,339,870  - 
               
     Net interest income  $10,186    $9,536 
               
     Net interest income as a percent of average interest-earning assets - GAAP measure   3.17%    3.08%
               
     Net interest income as a percent of average interest-earning assets - non GAAP3.19%    3.09%
     - Computed on a fully tax equivalent (FTE) basis       
               
       Nine Months Ended Sep. 30, 2024  Nine Months Ended Sep. 30, 2023
       Average Average  Average Average
    Assets BalanceInterestRate  BalanceInterestRate
               
     Taxable securities/cash $243,335 $5,0742.78%  $252,908 $4,5662.41%
     Nontaxable securities  6,423  1112.30%   7,369  1322.39%
     Loans, net  1,005,577  42,3175.61%   982,817  38,3285.20%
               
     Total earning assets  1,255,335  47,5025.05%   1,243,094  43,0264.61%
               
     Cash and due from banks  4,430      4,020   
     Allowance for loan losses  (15,693)     (15,374)  
     Premises and equipment  21,026      22,500   
     Other assets  85,482      90,227   
               
     Total assets $1,350,580     $1,344,467   
               
    Liabilities         
     Savings, MMDA and interest bearing demand$634,122 $8,2701.74%  $627,074 $5,3671.14%
     Time deposits  260,061  7,5963.89%   233,054  4,9432.83%
     Repurchase agreements & Other  14,708  1131.02%   16,576  350.28%
     Advances from Federal Home Loan Bank  40,466  1,3524.45%   53,936  1,8834.65%
     Trust preferred securities  10,310  5627.27%   10,310  5256.79%
     Subordinated debt  19,658  5843.96%   19,610  5843.97%
               
     Total interest bearing liabilities  979,325  18,4772.52%   960,560  13,3371.85%
               
     Non interest bearing demand  225,093  2.05%   238,465  1.48%
               
     Total funding  1,204,418      1,199,025   
               
     Other liabilities  21,944      19,862   
               
     Total liabilities  1,226,362      1,218,887   
               
     Equity  124,218      125,580   
               
     Total liabilities and equity $1,350,580     $1,344,467   
               
     Net interest income  $29,025    $29,689 
               
     Net interest income as a percent of average interest-earning assets - GAAP measure   3.08%    3.18%
               
     Net interest income as a percent of average interest-earning assets - non GAAP3.09%    3.20%
     - Computed on a fully tax equivalent (FTE) basis       
               


    Non-GAAP reconciliation Three Months Ended Nine Months Ended
             
    ($ in thousands, except per share & ratios) Sep. 30, 2024 Sep. 30, 2023 Sep. 30, 2024 Sep. 30, 2023
             
    Total Operating Revenue $14,309  $13,699  $41,485  $41,879 
    Adjustment to (deduct)/add OMSR recapture/impairment * 465   78   246   39 
             
    Adjusted Total Operating Revenue  14,774   13,777   41,731   41,918 
             
             
    Income before Income Taxes  3,106   3,224   9,329   9,897 
    Adjustment for OMSR *  465   78   246   39 
             
    Adjusted Income before Income Taxes  3,571   3,302   9,575   9,936 
             
             
    Provision for Income Taxes  752   537   1,494   1,685 
    Adjustment for OMSR **  98   16   52   8 
             
    Adjusted Provision for Income Taxes  850   553   1,546   1,693 
             
             
    Net Income  2,354   2,687   7,835   8,212 
    Adjustment for OMSR *  367   62   194   31 
             
    Adjusted Net Income  2,721   2,749   8,029   8,243 
             
             
    Diluted Earnings per Share  0.35   0.39   1.17   1.18 
    Adjustment for OMSR *  0.06   0.01   0.03   0.00 
             
    Adjusted Diluted Earnings per Share $0.41  $0.40  $1.20  $1.19 
             
             
    Return on Average Assets  0.68%  0.80%  0.77%  0.81%
    Adjustment for OMSR *  0.11%  0.02%  0.01%  0.00%
             
    Adjusted Return on Average Assets  0.79%  0.82%  0.79%  0.82%
             
    *valuation adjustment to the Company's mortgage servicing rights
             
    **tax effect is calculated using a 21% statutory federal corporate income tax rate
             

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