Sb Financial Group, Inc. · NASDAQ:SBFG

Sb Financial — Shareholder Meeting (April 2025)

39 slides from Sb Financial's shareholder meeting presentation, Apr 16, 2025

  1. Slide 1: 2025 Annual Shareholder Meeting

    2025 ANNUAL SHAREHOLDER MEETING S B F I NA NCI A L G RO U P, I NC. Resilient Roots, Visionary Growth

  2. Slide 2: 2024 Business Overview

    2024 Business Overview Restltent Roots, Vistonary Growth © financial

  3. Slide 3: 2024 Highlights

    2024 Highlights 3 • Net income of $11.5 million or $1.72/share • Deposit growth of $82.4 million • Loan growth of $46.5 million • ROAA 0.84%, ROAE 9.19% ROA TCE 11.34% • $261 million Residential Real Estate loans • Grew Wealth Management AUM by $45.9 million • Asset Quality Strong with NPAs covered

  4. Slide 4: 2024 Highlights: market share, valuation, expansion

    • Eight - county market share increases 94 basis points • Market valuation rises $33 million to $135 million • Expanded into an adjacent Northern Ohio market • Established seventh loan production office in Cincinnati, Ohio • Received regulatory approval for full - service in Angola, Indiana 4 Resili

  5. Slide 5: ROAA and EPS versus peer group

    2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2019 2020 2021 2022 Peer Group Top Quartile* (L) 2023 2024 SBFG - EPS (R) EPS ($/Share) ROAA (%) SBFG (L) * Peer group consists of S&P 2024 data for 65 publicly traded bank holding companies in the U.

  6. Slide 6: Unique Qualities: Contributions to net income

    RRE $1.4M / 12% Retail/PCG $4.7M / 40% Peak $0.2M / 3% Commercial/SBA $4.8M / 41% WM $0.4M / 4% CONTRIBUTIONS 2024 ASSETS UNDER MANAGEMENT $3.4 BILLION NET INCOME 2024 NET INCOME $ 11.5 MILLION COMPRISED OF: • $1.38B Commercial Bank • $1.43B Residential Sold Portfolio • $548M Wealth Management • EPS

  7. Slide 7: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  8. Slide 8: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  9. Slide 9: Increase Profitability Through Diversification of Revenue Streams

    Increase Profitability THROUGH DIVERSIFICATION OF REVENUE STREAMS $0 $5 $10 $20 $0 $15 $30 $45 $60 $75 2024 2023 2022 2021 2020 2019 29.9% 31.1% 31.5% 44.8% 45.6% 34.1% Fee/Revenue NET INCOME REVENUE (MIL) TOTAL REVENUE/NET INCOME Title Revenue Other SBA $15 Mortgage Service Charges Wealth Managemen

  10. Slide 10: Non-interest income as percentage of revenue vs peers

    * Peer group consists of S&P Capital 2024 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $628 million and $3.53 billion 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2019 2020 SBFG 2021 Peer Median* 2024 PERCENTAGE NON - INTER

  11. Slide 11: Mortgage volume and gain on sale

    $445 $694 $600 $313 $216 $261 $0 $100 $200 $300 $400 $500 $600 $700 $800 $0 $5 $10 $15 $20 $25 $30 2020 2021 2023 2024 MORTGAGE VOLUME (MIL) MORTGAGE GAIN ON SALE (MIL) MORTGAGE GAIN ON SALE/VOLUME 2019 NW Ohio 2022 Findlay Columbus Indy Total $ Originations Increase Profitability THRO UGH DIVERSIFI

  12. Slide 12: Wealth Management AUM and revenue growth

    Increase Profitability $508 $558 $618 $507 $502 $548 $3.1 $3.3 $3.8 $3.7 $3.5 $3.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $0 $100 $200 $300 $400 $500 $600 $700 2019 2020 2021 AUM (L) 2022 Revenue (R) 2023 2024 Wealth Management Revenue ($M) Wealth Management AUM ($M) AUM CAGR of 1.5% THROUGH D

  13. Slide 13: Net interest income, margin and liability cost trends

    Increase Profitability $34,826 $35,930 $37,884 $39,399 $39,273 $39,922 3.82% 3.35% 3.06% 3.22% 3.16% 3.16% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% $41,000 $40,000 $39,000 $38,000 $37,000 $36,000 $35,000 $34,000 $33,000 $32,000 2019 2020 2022 2023 2024 (000’s) Net Interest Income

  14. Slide 14: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  15. Slide 15: Marblehead Bank Acquisition

    Marblehead Bank Acquisition 15

  16. Slide 16: Strengthen Market Penetration: Historical Growth

    $1,039 $1,258 $1,331 $1,336 $1,343 $1,380 $0 $550 $1,100 $1,650 2019Y 2020Y 2021Y 2022Y 2023Y 2024Y $12.0 $14.9 $18.3 $12.5 $12.1 $11.5 $0 $12 $24 2019Y 2020Y 2021Y 2022Y 2023Y 2024Y $840 $1,049 $1,113 $1,087 $1,070 $1,153 $0 $750 $1,500 2019Y 2020Y 2021Y 2022Y 2023Y 2024Y $826 $873 $830 $962 $1,000

  17. Slide 17: Loan portfolio and total assets

    Loans (Net) 77% Cash & Due 2% Securities 15% Other 6% Commercial RE 46% HELOC 5% 1 - 4 Family 29% Agriculture 7% C&I 12% Consumer & Other 2% LOAN PORTFOLIO = $1.05 BILLION Strengthen Market Penetration IN ALL MARKETS SERVED Loan to Deposit December 2024 – 91% Top Quartile Performance TOTAL ASSETS =

  18. Slide 18: Deposit portfolio and funding sources

    Borrowings 5% Deposits 84% Capital 9% Other 2% Time 23% MMDA 19% Savings 21% Interest Bearing 17% Non - Interest 21% DEPOSIT PORTFOLIO = $1.15 BILLION Strengthen Market Penetration IN ALL MARKETS SERVED Transactional deposits = 77% of total deposits Average cost of deposits = 178 bps* TOTAL FUNDING

  19. Slide 19: Transaction and time deposits

    Strengthen Market Penetration IN ALL MARKETS SERVED $824,598 $956,541 $895,785 $814,696 $893,388 $257,753 $229,549 $156,504 $140,880 $255,509 $259,217 $582,466 $200,000 $0 $400,000 $600,000 $800,000 $1,000,000 $1,400,000 $1,200,000 2024 (000’s) Deposits 2019 2020 2021 Transaction Deposits 2022 2023

  20. Slide 20: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  21. Slide 21: Expand Product Utilization: Strong Market Leadership

    BOWLING GREEN, TOLEDO & LAKE ERIE FULTON & WILLIAMS COUNTIES Mark D. Cassin Tyson R. Moss Chris A. Webb LIMA FINDLAY Andy S. Farley Stefan R. Hartman FORT WAYNE COLUMBUS Adam V. Graessle Expand Product Utilization 21 BY NEW AND EXISTING CUSTOMERS STRONG MARKET LEADERSHIP

  22. Slide 22: Products and services per household

    0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 2015 2017 2019 Products/Services 2024 Products & Services/Household 2021 2023 Households Expand Product Utilization BY NEW AND EXISTING CUSTOMERS 22

  23. Slide 23: Electronic vs in-office transactions

    0 200 400 600 800 1,000 1,200 1,400 0 1,000 2,000 3,000 4,000 5,000 6,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 IN - OFFICE TRANSACTIONS PER YEAR (000’s) ELECTRONIC TRANSACTIONS PER YEAR (000’s) ELECTRONIC TRANSACTIONS & IN - OFFICE TRANSACTIONS Electronic Transactions (L)

  24. Slide 24: Online and mobile banking users

    0 2,000 4,000 6,000 8,000 10,000 2020 2021 2022 2023 2024 On - Line Banking Users Mobile Banking Users 12,000 10,000 9,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2020 2021 2022 2023 2024 Expand Product Utilization BY NEW AND EXISTING CUSTOMERS 24

  25. Slide 25: Referrals and new business

    1,712 1,636 1,312 1,409 1,364 1,514 959 811 607 737 761 890 $71.3 $99.5 $79.3 $81.6 $85.3 $92.2 $0 $20 $40 $60 $80 $100 $120 0 700 1,400 2,100 2019 2020 2021 2022 2023 2024 New Business (R) NEW BUSINESS (MIL) REFERRALS REFERRALS & NEW BUSINESS Gross (L) Closed (L) Expand Product Utilization BY NEW A

  26. Slide 26: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  27. Slide 27: Liquidity vs. uninsured deposits

    $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2019 2020 2021 Uninsured Deposits (L) 2022 2023 2024 CONTINGENCY LIQUIDITY ($000s) (Cash & FHLB Capacity) UNINSURED DEPOSITS ($000s) LIQUIDITY vs. UNIN

  28. Slide 28: Mortgage servicing portfolio

    Deliver Gains in Operational Excellence $ 1,199,107 $1,299,697 $1,362,961 $1,352,016 $1,366,667 $1,427,318 8,155 8,543 8,614 8,514 8,549 8,750 0 1,000 7,000 6,000 5,000 4,000 3,000 2,000 8,000 9,000 10,000 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 2022 2023 2024 Number of Loans

  29. Slide 29: Total risk based capital

    Deliver Gains in Operational Excellence 13.4 14.2 15.2 14.7 14.7 14.7 0.0 9.0 6.0 3.0 12.0 15.0 18.0 2019 2020 2021 Total Risk Based Capital 2024 RATIO (%) TOTAL RISK BASED CAPITAL 2022 2023 Well Capitalized 2024 61 st Percentile 29

  30. Slide 30: TBV and EPS performance

    $9.24 $10.39 $11.59 $13.27 $15.39 $15.23 $16.30 $17.60 $17.95 $19.42 $20.66 $1.06 $1.19 $1.38 $1.74 $1.51 $1.51 $1.96 $2.56 $1.77 $1.75 $1.72 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 Earnings Per Share Tangible Book Value 2014 2015 2016 201

  31. Slide 31: Dividend payout ratio

    Deliver Gains in Operational Excellence Dividend Payout Ratio 23.84 20.41 17.19 27.12 29.71 32.56 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 Percent 2019 2020 2021 2022 2023 2024 Payout Ratio Average Annual Dividend 0.00 0.10 0.20 0.30 0.40 0.50 0.60 Dollars 10 YEAR CAGR 31 OF 12.1%

  32. Slide 32: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  33. Slide 33: Sustain Asset Quality: Loan loss reserve

    Sustain Asset Quality 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2019 2024 Coverage (%) Reserves (Mil $) LOAN LOSS RESERVE 2020 2021 Reserves (L) 2022 2023 Coverage (R) $1.4M Added 1/1/23 – CECL Adoption 33

  34. Slide 34: Non-performing assets / total assets vs peers

    Sustain Asset Quality * Peer group consists of S&P Capital 2024 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $628 million and $3.53 billion. 0.42 0.58 0.49 0.38 0.25 0.61 0.49 0.41 0.40 0.23 0.28 0.39 0.22 0.19 0.20 0.13 0.11 0.40 0.00 0.70 N

  35. Slide 35: NCOs / average loans vs peers

    Sustain Asset Quality * Peer group consists of S&P Capital 2024 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $628 million and $3.53 billion. - 0.05% 0.00% 0.05% 0.10% 2019 2020 2023 2024 NCOs/ AVERAGE LOANS SBFG 2021 2022 Peer Median* Top Qua

  36. Slide 36: Reserve to non-performing loans vs peers

    0 600 500 400 300 200 100 2019 2020 2023 2024 PERCENTAGE RESERVE TO NON - PERFORMING LOANS SBFG 2021 Median 2022 Top Quartile Sus tain Asset Quality 36 * Peer group consists of S&P Capital 2024 data for 65 publicly traded bank holding companies in the U.S. on a major exchange with assets between $62

  37. Slide 37: Criticized loans

    Sustain Asset Quality $7,830 $12,995 $8,222 $5,805 $911 $8,383 $10,165 $7,111 $4,321 $3,225 1.28% $11,400 2.06% 2.42% 1.30% 0.90% $5,528 0.62% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% $0 $5,000 $10,000 $15,000 $20,000 $25,000 2019 2020 Special Mention (L) 2021 2022 Classified (L) 2023 Criticized (R) 2024

  38. Slide 38: Key Initiatives

    Key Initiatives Become a Russell 2000, High - Performing Financial Services Conglomerate Increase profitability through ongoing diversification of revenue streams Strengthen penetration in all markets served Expand product service utilization by new and existing customers Deliver gains in operationa

  39. Slide 39: Thank you for joining us today! Board and Management

    Thank you for joining us today! Board and Management 39

SB Financial Group — Shareholder Meeting (April 2025) on 6ix