Sb Financial Group, Inc.NASDAQ: SBFG

SB Financial Group Announces Fourth Quarter 2025 Results

· Issued by Sb Financial Group, Inc. via GlobeNewswire

DEFIANCE, Ohio, Jan. 29, 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 full year ended December 31, 2025.

Fourth Quarter 2025 Highlights compared to the fourth quarter of the prior year include:

  • GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.63 per DEPS, an improvement from the $3.6 million, or $0.55 per DEPS in the prior-year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”), was $4.0 million, up 18.6 percent compared to $3.4 million for the prior-year period. Adjusted DEPS of $0.65 was also up 25.0 percent, from the adjusted prior year.

  • Net interest income of $12.7 million increased by 16.7 percent from $10.9 million reported in the prior-year quarter.

  • Loan growth of $133.9 million, or 12.8 percent from the prior-year quarter, with growth from the linked quarter of $70.0 million, or 6.3 percent. This marks the seventh consecutive quarter of sequential loan growth. Loan growth adjusted for the Marblehead acquisition was $115.7 and $70.0 million, from the prior year and linked quarters, respectively.

  • Deposit growth of $154.6 million, or 13.4 percent from the prior-year quarter, with an increase from the linked quarter of $44.7 million, or 3.5 percent. Adjusted for the Marblehead acquisition, total deposits increased $107.5 million from the prior year, or a 9.3 percent increase.

  • Tangible book value (“TBV”) per share ended the quarter at $18.00 up $2.00 per share or 12.5 percent from the prior-year quarter. Adjusted TBV now rests at $21.44 per share.

Twelve months ended December 31, 2025 Highlights compared to the same period of the prior year:

  • Net interest income rose to $48.5 million, representing a year-over-year improvement of 21.4 percent from $39.9 million for the twelve months ending December 31, 2024.

  • Total interest expense increased to $25.5 million, up by 4.3 percent from $24.4 million in the prior year period.

  • Net income increased to $14.0 million for the twelve months ending December 31, 2025, representing an improvement of 21.8% from $11.5 million in the prior year.

Earnings Highlights

Three Months Ended

Twelve Months Ended

($ in thousands, except per share & ratios)

Dec. 2025

Dec. 2024

% Change

Dec. 2025

Dec. 2024

% Change

Operating revenue

$

16,420

$

15,454

6.3

%

$

65,560

$

56,939

15.1

%

Interest income

19,272

16,847

14.4

%

73,920

64,349

14.9

%

Interest expense

6,560

5,950

10.3

%

25,467

24,427

4.3

%

Net interest income

12,712

10,897

16.7

%

48,453

39,922

21.4

%

Provision for credit losses

198

(76

)

360.5

%

1,306

124

953.2

%

Noninterest income

3,708

4,557

-18.6

%

17,107

17,017

0.5

%

Noninterest expense

11,239

11,003

2.1

%

46,999

42,959

9.4

%

Net income

3,918

3,635

7.8

%

13,974

11,470

21.8

%

Adjusted Earnings per diluted share

0.65

0.52

25.0

%

2.31

1.71

35.1

%

Earnings per diluted share

0.63

0.55

14.5

%

2.19

1.72

27.3

%

Adjusted Return on Avg. Assets

1.02

%

1.02

%

0.0

%

0.98

%

0.84

%

16.7

%

Return on average assets

1.01

%

1.04

%

-2.9

%

0.93

%

0.84

%

10.7

%

Adjusted Return on Avg. Equity

11.43

%

10.38

%

10.1

%

10.98

%

9.16

%

19.9

%

Return on average equity

11.08

%

11.07

%

0.1

%

10.38

%

9.19

%

12.9

%

“Net income for the fourth quarter was $3.9 million, a 7.8 percent increase from the prior-year quarter, with the GAAP DEPS of $0.63 up 14.5 percent from the prior year,” said Mark A. Klein, Chairman, President, and CEO. This marks 60 consecutive quarters of profitability, which also included the third full quarter of contribution from the Marblehead acquisition, which continues to strengthen our liquidity profile and further extended our market presence in Northern Ohio.

Net interest income for the quarter grew by $1.8 million to $12.7 million compared to the previous year, driven by strong loan growth, rising loan yields, and more stable funding costs. Total loans increased by $133.9 million, compared to the prior year, and by $70.0 million from the linked quarter. On an organic basis, excluding the Marblehead acquisition, loan balances increased $115.7 million from the prior year. Deposits increased $154.6 million, or 13.4 percent, to $1.31 billion, driven by stable core deposit relationships. Excluding acquired deposits, organic growth totaled $107.5 million, demonstrating the Bank’s ability to sustain long-standing client relationships while continuing to source additional deposit balances.”

RESULTS OF OPERATIONS

In the fourth quarter of 2025, total operating revenue increased to $16.4 million, a 6.3 percent increase from $15.5 million in the prior year and a 1.0 percent decrease from the linked quarter. The year-over-year increase was driven by higher net interest income and incremental expansion in core non-interest income. Net interest income totaled $12.7 million for the quarter, representing a 16.7 percent increase from the prior year, driven by higher interest income on loans, which increased $2.3 million to $17.3 million. Interest expense rose modestly, with higher deposit costs offset in part by lower costs across other funding sources, resulting in a 10.3 percent increase in total interest expense compared to the prior-year quarter. As a result, net interest margin increased 16 basis points year over year to 3.5 percent. Noninterest income declined 18.6 percent from the prior year period to $3.7 million, primarily driven by lower wealth management fees, mortgage loan servicing fees, and other fee-based income. These declines were partially offset by higher customer service fees, gains on the sale of mortgage and non-mortgage loans and increased title insurance revenue. “Our results this quarter reflect continued balance sheet discipline, with funding cost management supporting margin expansion, while noninterest income was impacted by lower activity in certain fee-based businesses,” said Mr. Klein. “We remain focused on maintaining a diversified revenue mix and executing on long-term growth priorities.”

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.5 million, down $541,000 from the prior-year quarter. Loan servicing fees added $928,000 to revenue, reflecting an increase of $42,000 from the prior-year quarter. The OMSR net valuation adjustment for the fourth quarter of 2025 was a negative $157,000 compared to a recapture of $288,000 in the fourth quarter of 2024.

Mortgage Banking

($ in thousands)

Dec. 2025

Sep. 2025

Jun. 2025

Mar. 2025

Dec. 2024

Prior Year Growth

Mortgage originations

$

72,398

$

67,609

$

97,901

$

39,775

$

72,534

$

(136

)

Mortgage sales

70,361

66,408

74,313

39,279

62,301

8,060

Mortgage servicing portfolio

1,479,982

1,470,360

1,456,374

1,432,184

1,427,318

52,664

Mortgage servicing rights

15,254

15,347

15,458

14,965

14,868

386

Revenue

Loan servicing fees

928

914

904

894

886

42

OMSR amortization

(572

)

(455

)

(469

)

(294

)

(358

)

(214

)

Net administrative fees

356

459

435

600

528

(172

)

OMSR valuation adjustment

(157

)

(301

)

159

11

288

(445

)

Net loan servicing fees

199

158

594

611

816

(617

)

Gain on sale of mortgages

1,272

1,328

1,566

849

1,196

76

Mortgage banking revenue, net

$

1,471

$

1,486

$

2,160

$

1,460

$

2,012

$

(541

)

Noninterest Income and Noninterest Expense

"Noninterest income for the fourth quarter of 2025 totaled $3.7 million, a decrease of $849,000 or 18.6 percent from the prior-year quarter, driven primarily by a decline in mortgage loan servicing fees and other fee-based income. Despite the year over year decline, noninterest revenue base remains well diversified, with gains on the sale of mortgage loans increasing $76,000 and customer servicing fees increasing $50,000, helping to partially offset lower fee activity,” Mr. Klein noted.

Noninterest Income/Noninterest Expense

($ in thousands, except ratios)

Dec. 2025

Sep. 2025

Jun. 2025

Mar. 2025

Dec. 2024

Prior Year Growth

Noninterest Income (NII)

$

3,708

$

4,244

$

5,048

$

4,107

$

4,557

$

(849

)

NII / Total Revenue

22.6

%

25.6

%

29.4

%

26.7

%

29.5

%

-6.9

%

NII / Average Assets

1.0

%

1.1

%

1.4

%

1.1

%

1.3

%

-0.3

%

Total Revenue Growth

6.3

%

15.9

%

22.3

%

17.2

%

2.2

%

4.1

%

Noninterest Expense (NIE)

$

11,239

$

11,498

$

11,852

$

12,410

$

11,003

$

236

Efficiency Ratio

68.1

%

69.0

%

68.9

%

80.0

%

71.1

%

-3.0

%

NIE / Average Assets

2.9

%

3.0

%

3.2

%

3.4

%

3.2

%

-0.3

%

Net Noninterest Expense/Avg. Assets

-1.9

%

-1.9

%

-1.8

%

-2.3

%

-1.8

%

-0.1

%

Total Expense Growth

2.1

%

4.5

%

11.1

%

20.7

%

6.1

%

-4.0

%

Noninterest expense for the fourth quarter of 2025 totaled $11.2 million, an increase of 2.1 percent from the prior-year period, driven primarily by higher net occupancy costs, state and local taxes, and other noninterest expenses. These increases were partially offset by lower salary and benefit expenses, as well as reduction in professional fees and marketing costs. “Our efficiency ratio for the fourth quarter of 2025 was 68.1 percent, reflecting continued discipline in expense management as we balanced targeted investments with revenue performance,” stated Mr. Klein.

Balance Sheet

As of December 31, 2025, SB Financial reported total assets of $1.55 billion, an increase from the linked quarter and the previous year. Year-over-year growth was primarily driven by strong growth in the loan portfolio, which reached $1.18 billion, marking a $133.9 million or 12.8 percent increase year over year. Loan growth also included $18.2 million in loans added with the completion of the Marblehead acquisition. Cash increased by $45.6 million from the prior year, from investment portfolio runoff and deposit growth. Key metrics this quarter included our loan-to-deposit ratio of 90.3 percent and our loan to asset ratio of 76 percent, both of which remain within the upper range of the Company’s target levels.

Total deposits increased to $1.31 billion, growing $154.6 million, or 13.4 percent, year over year, including $47.1 million in low-cost deposits from the acquisition and $107.5 million of organic deposit growth. Organic growth was supported by continued deposit gathering activity and customer engagement across SB Financial’s markets. Shareholders’ equity totaled $141.2 million at quarter end, representing an increase of $13.7 million from the prior year, or an increase of $3.01 per share, reflecting earnings retention and disciplined balance sheet management.

During the fourth quarter, SB Financial repurchased approximately 32,000 shares, a decrease from the prior quarter, reflecting management’s disciplined capital deployment and its assessment of market conditions and capital priorities during the period. The Company remains focused on a balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases, while maintaining flexibility to support organic growth, strategic opportunities, and capital strength.

“As we move into the first quarter of 2026, the Company remains well positioned, supported by a strong balance sheet, solid asset quality and disciplined approach to capital management,” said Mr. Klein. “Loan balances continued to grow over the past year, driven by steady client activity and consistent execution across our markets, while credit performance and reserve coverage remained sound. While we navigated variability across certain revenue categories during the quarter, our diversified business model and funding profile continue to provide stability. Looking ahead, we remain focused on prudent organic growth, disciplined expense management, and thoughtful capital deployment to support sustainable performance and long-term shareholder value.

Loan Balances

($ in thousands, except ratios)

Dec. 2025

Sep. 2025

Jun. 2025

Mar. 2025

Dec. 2024

Annual Growth

Commercial

$

113,878

$

117,581

$

118,984

$

125,878

$

124,764

$

(10,886

)

% of Total

9.6

%

10.6

%

10.9

%

11.6

%

11.9

%

-8.7

%

Commercial RE

596,983

535,307

525,671

509,518

479,573

117,410

% of Total

50.6

%

48.2

%

48.0

%

46.8

%

45.8

%

24.5

%

Agriculture

76,514

65,150

60,924

61,443

64,680

11,834

% of Total

6.5

%

5.9

%

5.6

%

5.6

%

6.2

%

18.3

%

Residential RE

304,741

309,140

310,126

319,307

308,378

(3,637

)

% of Total

25.8

%

27.8

%

28.3

%

29.3

%

29.5

%

-1.2

%

Consumer & Other

88,475

83,367

79,014

72,128

69,340

19,135

% of Total

7.5

%

7.5

%

7.2

%

6.6

%

6.6

%

27.6

%

Total Loans

$

1,180,591

$

1,110,545

$

1,094,719

$

1,088,274

$

1,046,735

$

133,856

Total Growth Percentage

12.8

%

Deposit Balances

($ in thousands, except ratios)

Dec. 2025

Sep. 2025

Jun. 2025

Mar. 2025

Dec. 2024

Annual Growth

Non-Int DDA

$

254,063

$

246,725

$

241,245

$

240,446

$

232,155

$

21,908

% of Total

19.4

%

19.5

%

19.3

%

18.9

%

20.1

%

9.4

%

Interest DDA

202,501

194,420

205,581

208,583

201,085

1,416

% of Total

15.5

%

15.4

%

16.4

%

16.4

%

17.4

%

0.7

%

Savings

296,484

290,111

282,311

285,902

237,987

58,497

% of Total

22.7

%

23.0

%

22.6

%

22.5

%

20.6

%

24.6

%

Money Market

280,896

261,953

249,536

257,013

222,161

58,735

% of Total

21.5

%

20.7

%

20.0

%

20.2

%

19.3

%

26.4

%

Time Deposits

273,300

269,313

271,149

279,276

259,217

14,083

% of Total

20.9

%

21.3

%

21.7

%

22.0

%

22.5

%

5.4

%

Total Deposits

$

1,307,244

$

1,262,522

$

1,249,822

$

1,271,220

$

1,152,605

$

154,639

Total Growth Percentage

13.4

%

Asset Quality

As of December 31, 2025, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.7 million, representing 0.30 percent of total assets, a decrease of $833,000 from $5.5 million or 0.40 percent of total assets, in the prior year, and a modest decline from the linked quarter, which reported nonperforming assets of $4.9 million or 0.32 percent of total assets.

The allowance for credit losses remained strong at 1.36 percent of total loans, providing coverage of 351.9 percent of nonperforming loans. This level was consistent with the linked quarter and represented a meaningful improvement compared to the prior year period, consistent with the Company’s disciplined credit risk framework. Net loan charge-offs to average loans remained modest at four basis points, increasing slightly from zero basis points in the linked quarter and improving from seven basis points in the prior year. Collectively, these metrics reflect SB Financial’s continued emphasis on disciplined underwriting and effective credit administration.

“Our credit results this quarter reflect continued stability across the loan portfolio and further progress in managing problem assets,” said Mr. Klein “Nonperforming assets declined from the prior quarter as we maintained disciplined credit standards, while reserve coverage and charge-off levels remained consistent with our risk appetite. We will continue to emphasize disciplined underwriting and proactive credit management as we support measured growth across our markets.”

Nonperforming Assets

Annual
Change

($ in thousands, except ratios)

Dec. 2025

Sep. 2025

Jun. 2025

Mar. 2025

Dec. 2024

Commercial & Agriculture

$

2,256

$

2,243

$

3,274

$

3,418

$

2,927

$

(671

)

% of Total Com./Ag. loans

1.18

%

1.23

%

1.82

%

1.82

%

1.55

%

-22.9

%

Commercial RE

771

778

816

798

807

(36

)

% of Total CRE loans

0.13

%

0.15

%

0.16

%

0.16

%

0.17

%

-4.5

%

Residential RE

1,322

1,400

1,577

1,608

1,539

(217

)

% of Total Res. RE loans

0.43

%

0.45

%

0.51

%

0.50

%

0.50

%

-14.1

%

Consumer & Other

230

195

205

227

243

(13

)

% of Total Con./Oth. loans

0.26

%

0.23

%

0.26

%

0.31

%

0.35

%

-5.3

%

Total Nonaccruing Loans

4,579

4,616

5,872

6,051

5,516

(937

)

% of Total loans

0.39

%

0.42

%

0.54

%

0.56

%

0.53

%

-17.0

%

Foreclosed Assets and Other Assets

104

237

284

73

-

104

Total Change (%)

N/M

Total Nonperforming Assets

$

4,683

$

4,853

$

6,156

$

6,124

$

5,516

$

(833

)

% of Total assets

0.30

%

0.32

%

0.41

%

0.41

%

0.40

%

-15.10

%

Webcast and Conference Call

The Company will hold the fourth quarter 2025 earnings conference call and webcast on January 30, 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 loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

Forward-Looking Statements

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

Non-GAAP Financial Measures

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

Investor Contact Information:

Mark A. Klein

Chairman, President and

Chief Executive Officer

Mark.Klein@YourStateBank.com

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

December

September

June

March

December

($ in thousands)

2025

2025

2025

2025

2024

Cash and due from banks

$

71,543

$

85,025

$

79,463

$

105,145

$

25,928

Interest bearing time deposits

1,140

2,025

1,565

1,565

1,565

Available-for-sale securities

188,626

193,190

195,955

199,721

201,587

Loans held for sale

1,761

4,736

12,774

4,286

6,770

Loans, net of unearned income

1,180,591

1,110,545

1,094,719

1,088,274

1,046,735

Allowance for credit losses

(16,114

)

(15,943

)

(15,645

)

(15,391

)

(15,096

)

Premises and equipment, net

21,688

21,764

21,857

21,875

20,456

Federal Reserve and FHLB Stock, at cost

5,610

5,466

5,466

5,340

5,223

Foreclosed assets

104

237

284

73

-

Interest receivable

5,490

5,455

5,299

5,072

4,908

Goodwill

27,158

27,158

27,158

27,158

23,239

Cash value of life insurance

32,208

32,004

31,060

30,871

30,685

Mortgage servicing rights

15,254

15,347

15,458

14,965

14,868

Other assets

10,308

9,254

10,888

12,048

12,649

Total assets

$

1,545,367

$

1,496,263

$

1,486,301

$

1,501,002

$

1,379,517

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits

Non interest bearing demand

$

254,063

$

246,725

$

241,245

$

240,446

$

232,155

Interest bearing demand

202,501

194,420

205,581

208,583

201,085

Savings

296,484

290,111

282,311

285,902

237,987

Money market

280,896

261,953

249,536

257,013

222,161

Time deposits

273,300

269,313

271,149

279,276

259,217

Total deposits

1,307,244

1,262,522

1,249,822

1,271,220

1,152,605

Short-term borrowings

9,230

10,976

15,640

11,058

10,585

Federal Home Loan Bank advances

35,000

35,000

35,000

35,000

35,000

Trust preferred securities

10,310

10,310

10,310

10,310

10,310

Subordinated debt net of issuance costs

19,739

19,726

19,715

19,702

19,690

Interest payable

2,460

2,739

2,258

2,634

2,351

Other liabilities

20,148

18,051

19,908

19,552

21,468

Total liabilities

1,404,131

1,359,324

1,352,653

1,369,476

1,252,009

Shareholders' Equity

Common stock

61,319

61,319

61,319

61,319

61,319

Additional paid-in capital

15,160

15,086

15,139

14,955

15,194

Retained earnings

126,311

123,370

120,273

117,397

116,186

Accumulated other comprehensive loss

(21,481

)

(23,412

)

(25,492

)

(26,872

)

(30,234

)

Treasury stock

(40,073

)

(39,424

)

(37,591

)

(35,273

)

(34,957

)

Total shareholders' equity

141,236

136,939

133,648

131,526

127,508

Total liabilities and shareholders' equity

$

1,545,367

$

1,496,263

$

1,486,301

$

1,501,002

$

1,379,517

SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except per share & ratios)

At and for the Three Months Ended

Twelve Months Ended

December

September

June

March

December

December

December

Interest income

2025

2025

2025

2025

2024

2025

2024

Loans

Taxable

$

17,234

$

16,449

$

16,059

$

15,244

$

14,920

$

64,986

$

56,863

Tax exempt

107

117

116

115

122

455

496

Securities

Taxable

1,096

1,097

1,133

1,169

1,178

4,495

4,870

Tax exempt

36

35

35

38

35

144

146

Other interest income

799

1,111

1,124

806

592

3,840

1,974

Total interest income

19,272

18,809

18,467

17,372

16,847

73,920

64,349

Interest expense

Deposits

5,820

5,721

5,597

5,352

5,169

22,490

21,035

Repurchase agreements & other

22

28

21

24

41

95

154

Federal Home Loan Bank advances

370

369

366

362

369

1,467

1,721

Trust preferred securities

154

162

161

160

177

637

739

Subordinated debt

194

195

194

195

194

778

778

Total interest expense

6,560

6,475

6,339

6,093

5,950

25,467

24,427

Net interest income

12,712

12,334

12,128

11,279

10,897

48,453

39,922

Provision for credit losses

198

124

597

387

(76

)

1,306

124

Net interest income after provision

for credit losses

12,514

12,210

11,531

10,892

10,973

47,147

39,798

Noninterest income

Wealth management fees

900

912

859

864

916

3,535

3,511

Customer service fees

892

887

886

879

842

3,544

3,467

Gain on sale of mtg. loans & OMSR

1,272

1,328

1,566

849

1,196

5,015

4,565

Mortgage loan servicing fees, net

199

158

594

611

816

1,562

2,183

Gain on sale of non-mortgage loans

38

8

82

15

10

143

145

Title insurance revenue

525

544

582

397

478

2,048

1,635

Net gain on sales of securities

-

-

-

-

-

-

-

Gain (loss) on sale of assets

-

-

-

-

-

-

200

Other

(118

)

407

479

492

299

1,260

1,311

Total noninterest income

3,708

4,244

5,048

4,107

4,557

17,107

17,017

Noninterest expense

Salaries and employee benefits

6,047

6,198

6,595

6,237

6,185

25,077

23,603

Net occupancy expense

822

801

793

893

702

3,309

2,884

Equipment expense

1,154

1,188

1,121

1,072

1,127

4,535

4,333

Data processing fees

790

723

888

1,439

821

3,840

3,075

Professional fees

805

863

892

1,034

895

3,594

2,927

Marketing expense

122

174

190

165

207

651

821

Telephone and communication expense

124

123

125

139

136

511

525

Postage and delivery expense

140

157

107

137

116

541

447

State, local and other taxes

331

268

268

224

224

1,091

907

Employee expense

158

255

176

174

168

763

733

Other expenses

746

748

697

896

422

3,087

2,704

Total noninterest expense

11,239

11,498

11,852

12,410

11,003

46,999

42,959

Income before income tax expense

4,983

4,956

4,727

2,589

4,527

17,255

13,856

Income tax expense

1,065

910

875

431

892

3,281

2,386

Net income

$

3,918

$

4,046

$

3,852

$

2,158

$

3,635

$

13,974

$

11,470

Common share data:

Basic earnings per common share

$

0.63

$

0.64

$

0.60

$

0.33

$

0.55

$

2.19

$

1.72

Diluted earnings per common share

$

0.63

$

0.64

$

0.60

$

0.33

$

0.55

$

2.19

$

1.72

Average shares outstanding (in thousands):

Basic:

6,252

6,297

6,448

6,481

6,575

6,369

6,660

Diluted:

6,266

6,311

6,459

6,502

6,599

6,388

6,680

SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share & ratios)

At and for the Three Months Ended

Twelve Months Ended

December

September

June

March

December

December

December

SUMMARY OF OPERATIONS

2025

2025

2025

2025

2024

2025

2024

Net interest income

$

12,712

$

12,334

$

12,128

$

11,279

$

10,897

$

48,453

$

39,922

Tax-equivalent adjustment

38

40

40

41

42

159

171

Tax-equivalent net interest income

12,750

12,374

12,168

11,320

10,939

48,612

40,093

Provision for credit loss

198

124

597

387

(76

)

1,306

124

Noninterest income

3,708

4,244

5,048

4,107

4,557

17,107

17,017

Total operating revenue

16,420

16,578

17,176

15,386

15,454

65,560

56,939

Noninterest expense

11,239

11,498

11,852

12,410

11,003

46,999

42,959

Pre-tax pre-provision income

5,181

5,080

5,324

2,976

4,451

18,561

13,980

Net income

3,918

4,046

3,852

2,158

3,635

13,974

11,470

PER SHARE INFORMATION:

Basic earnings per share (EPS)

0.63

0.64

0.60

0.33

0.55

2.19

1.72

Diluted earnings per share

0.63

0.64

0.60

0.33

0.55

2.19

1.72

Common dividends

0.155

0.150

0.150

0.145

0.145

0.600

0.560

Book value per common share

22.65

21.85

21.02

20.29

19.64

22.65

19.64

Tangible book value per common share (TBV)

18.00

17.21

16.44

15.79

16.00

18.00

16.00

Market price per common share

22.27

19.29

19.10

20.82

20.91

22.27

20.91

Market price to TBV

123.7

%

112.1

%

116.2

%

131.8

%

130.7

%

123.7

%

130.7

%

Market price to trailing 12 month EPS

10.1

9.1

10.4

12.2

12.1

10.1

12.1

PERFORMANCE RATIOS:

Return on average assets (ROAA)

1.01

%

1.07

%

1.03

%

0.60

%

1.04

%

0.93

%

0.84

%

Pre-tax pre-provision ROAA

1.34

%

1.34

%

1.42

%

0.83

%

1.27

%

1.33

%

1.10

%

Return on average equity (ROE)

11.08

%

12.08

%

11.67

%

6.63

%

11.07

%

10.38

%

9.19

%

Return on average tangible equity

13.97

%

15.47

%

14.97

%

8.32

%

13.51

%

13.22

%

11.34

%

Efficiency ratio

68.09

%

69.00

%

68.90

%

80.00

%

71.09

%

71.33

%

75.33

%

Earning asset yield

5.32

%

5.31

%

5.29

%

5.23

%

5.15

%

5.28

%

4.91

%

Cost of interest bearing liabilities

2.34

%

2.33

%

2.33

%

2.32

%

2.35

%

2.33

%

2.48

%

Net interest margin

3.51

%

3.48

%

3.48

%

3.40

%

3.33

%

3.46

%

3.05

%

Tax equivalent effect

0.01

%

0.02

%

0.01

%

0.01

%

0.01

%

0.01

%

0.01

%

Net interest margin, tax equivalent

3.52

%

3.50

%

3.49

%

3.41

%

3.34

%

3.47

%

3.06

%

Non interest income/Average assets

0.96

%

1.12

%

1.35

%

1.14

%

1.30

%

1.14

%

1.25

%

Non interest expense/Average assets

2.90

%

3.04

%

3.17

%

3.45

%

3.14

%

3.13

%

3.16

%

Net noninterest expense/Average assets

-1.94

%

-1.92

%

-1.82

%

-2.31

%

-1.84

%

-1.99

%

-1.91

%

ASSET QUALITY RATIOS:

Gross charge-offs

133

11

49

86

195

279

290

Recoveries

3

9

3

2

13

17

40

Net charge-offs

130

2

46

84

182

262

250

Nonperforming loans/Total loans

0.39

%

0.42

%

0.54

%

0.56

%

0.53

%

0.39

%

0.53

%

Nonperforming assets/Loans & OREO

0.40

%

0.44

%

0.56

%

0.56

%

0.53

%

0.40

%

0.53

%

Nonperforming assets/Total assets

0.30

%

0.32

%

0.41

%

0.41

%

0.40

%

0.30

%

0.40

%

Allowance for credit loss/Nonperforming loans

351.91

%

345.39

%

266.43

%

254.35

%

273.68

%

351.91

%

273.68

%

Allowance for credit loss/Total loans

1.36

%

1.44

%

1.43

%

1.41

%

1.44

%

1.36

%

1.44

%

Net loan charge-offs/Average loans (ann.)

0.04

%

0.00

%

0.02

%

0.03

%

0.07

%

0.02

%

0.02

%

Loan loss provision/Net charge-offs

N/M

N/M

N/M

N/M

N/M

N/M

N/M

CAPITAL & LIQUIDITY RATIOS:

Loans/ Deposits

90.31

%

87.96

%

87.59

%

85.61

%

90.81

%

90.31

%

90.81

%

Equity/ Assets

9.14

%

9.15

%

8.99

%

8.76

%

9.24

%

9.14

%

9.24

%

Tangible equity/Tangible assets

7.40

%

7.35

%

7.17

%

6.96

%

7.66

%

7.40

%

7.66

%

Common equity tier 1 ratio (Bank)

11.78

%

12.48

%

12.53

%

12.35

%

13.43

%

11.78

%

13.43

%

END OF PERIOD BALANCES

Total assets

1,545,367

1,496,263

1,486,301

1,501,002

1,379,517

1,545,367

1,379,517

Total loans

1,180,591

1,110,545

1,094,719

1,088,274

1,046,735

1,180,591

1,046,735

Deposits

1,307,244

1,262,522

1,249,822

1,271,220

1,152,605

1,307,244

1,152,605

Shareholders equity

141,236

136,939

133,648

131,526

127,508

141,236

127,508

Goodwill and intangibles

28,989

29,048

29,107

29,125

23,597

28,989

23,597

Tangible equity

112,247

107,891

104,541

102,401

103,911

112,247

103,911

Mortgage servicing portfolio

1,479,982

1,470,360

1,456,374

1,432,184

1,427,318

1,479,982

1,427,318

Wealth/Brokerage assets under care

566,004

563,036

536,836

519,158

547,697

566,004

547,697

Total assets under care

3,591,353

3,529,659

3,479,511

3,452,344

3,354,532

3,591,353

3,354,532

Full-time equivalent employees

252

253

256

262

252

252

252

Period end common shares outstanding

6,236

6,268

6,359

6,483

6,494

6,236

6,494

Market capitalization (all)

138,883

120,907

121,453

134,982

135,780

138,883

135,780

AVERAGE BALANCES

Total assets

1,536,215

1,502,389

1,498,756

1,459,896

1,395,473

1,499,323

1,361,274

Total earning assets

1,436,207

1,404,330

1,399,485

1,346,354

1,301,872

1,398,888

1,267,794

Total loans

1,158,567

1,104,175

1,076,328

1,076,328

1,040,580

1,108,531

1,014,375

Deposits

1,299,512

1,270,783

1,270,798

1,227,449

1,163,531

1,267,201

1,130,973

Shareholders equity

140,315

132,866

132,353

131,944

130,647

134,606

124,742

Goodwill and intangibles

29,027

29,077

29,116

26,714

23,605

28,865

23,629

Tangible equity

111,288

103,789

103,237

105,230

107,042

105,741

101,113

Average basic shares outstanding

6,252

6,297

6,448

6,481

6,575

6,369

6,660

Average diluted shares outstanding

6,266

6,311

6,459

6,502

6,599

6,388

6,680

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three and Twelve Months Ended Dec. 31, 2025 and 2024

($ in thousands)

Three Months Ended Dec. 31, 2025

Three Months Ended Dec. 31, 2024

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

192,092

$

1,096

2.26

%

$

205,848

$

1,321

2.55

%

Overnight Cash

79,464

799

3.99

%

49,141

449

3.63

%

Nontaxable securities

6,084

36

2.35

%

6,303

35

2.21

%

Loans, net

1,158,567

17,341

5.94

%

1,040,580

15,042

5.75

%

Total earning assets

1,436,207

19,272

5.32

%

1,301,872

16,847

5.15

%

Cash on hand

5,449

4,262

Allowance for loan losses

(16,044

)

(15,070

)

Premises and equipment

21,832

20,642

Other assets

88,771

83,767

Total assets

$

1,536,215

$

1,395,473

Liabilities

Savings, MMDA and interest bearing demand

$

764,806

$

3,468

1.80

%

$

669,987

$

2,803

1.66

%

Time deposits

272,398

2,352

3.43

%

259,093

2,366

3.63

%

Repurchase agreements & other

10,709

22

0.82

%

13,229

41

1.23

%

Advances from Federal Home Loan Bank

35,000

370

4.19

%

35,000

369

4.19

%

Trust preferred securities

10,310

154

5.93

%

10,310

177

6.83

%

Subordinated debt

19,731

194

3.90

%

19,674

194

3.92

%

Total interest bearing liabilities

1,112,954

6,560

2.34

%

1,007,293

5,950

2.35

%

Non interest bearing demand

262,308

-

234,451

-

Total funding

1,375,262

1.89

%

1,241,744

1.91

%

Other liabilities

20,638

23,082

Total liabilities

1,395,900

1,264,826

Equity

140,315

130,647

Total liabilities and equity

$

1,536,215

$

1,395,473

Net interest income

$

12,712

$

10,897

Net interest income as a percent of average interest-earning assets - GAAP measure

3.51

%

3.33

%

Net interest income as a percent of average interest-earning assets - non GAAP

3.52

%

3.34

%

- Computed on a fully tax equivalent (FTE) basis

Twelve Months Ended Dec. 31, 2025

Twelve Months Ended Dec. 31, 2024

Average

Average

Average

Average

Assets

Balance

Interest

Rate

Balance

Interest

Rate

Taxable securities

$

196,831

$

4,495

2.28

%

$

247,026

$

5,490

2.22

%

Overnight Cash

87,283

3,840

4.40

%

43,171

1,354

3.14

%

Nontaxable securities

6,243

144

2.31

%

6,393

146

2.28

%

Loans, net

1,108,531

65,441

5.90

%

1,014,375

57,359

5.65

%

Total earning assets

1,398,888

73,920

5.28

%

1,310,965

64,349

4.91

%

Cash on hand

5,390

4,388

Allowance for loan losses

(15,631

)

(15,536

)

Premises and equipment

21,624

20,929

Other assets

89,052

40,528

Total assets

$

1,499,323

$

1,361,274

Liabilities

Savings, MMDA and interest bearing demand

$

742,153

$

13,092

1.76

%

$

643,710

$

11,073

1.72

%

Time deposits

273,228

9,398

3.44

%

259,818

9,962

3.83

%

Repurchase agreements & Other

12,085

95

0.79

%

14,336

154

1.07

%

Advances from Federal Home Loan Bank

35,011

1,467

4.19

%

39,092

1,721

4.40

%

Trust preferred securities

10,310

637

6.18

%

10,310

739

7.17

%

Subordinated debt

19,713

778

3.95

%

19,665

778

3.96

%

Total interest bearing liabilities

1,092,500

25,467

2.33

%

986,931

24,427

2.48

%

Non interest bearing demand

251,820

1.89

%

227,445

2.01

%

Total funding

1,344,320

1,214,376

Other liabilities

20,397

22,156

Total liabilities

1,364,717

1,236,532

Equity

134,606

124,742

Total liabilities and equity

$

1,499,323

$

1,361,274

Net interest income

$

48,453

$

39,922

Net interest income as a percent of average interest-earning assets - GAAP measure

3.46

%

3.05

%

Net interest income as a percent of average interest-earning assets - non GAAP

3.47

%

3.06

%

- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation

Three Months Ended

Twelve Months Ended

($ in thousands, except per share & ratios)

Dec. 31, 2025

Dec. 31, 2024

Dec. 31, 2025

Dec. 31, 2024

Total Operating Revenue

$

16,420

$

14,454

$

65,560

$

56,939

Adjustment to (deduct)/add OMSR recapture/impairment *

157

(288

)

289

(42

)

Adjusted Total Operating Revenue

16,577

14,166

65,849

56,897

Total Operating Expense

11,239

11,003

46,999

42,959

Adjustment for merger expenses

-

-

(726

)

-

Adjusted Total Operating Expense

11,239

11,003

46,273

42,959

Income before Income Taxes

4,983

4,527

17,255

13,856

Adjustment for OMSR*/Merger Expenses

157

(288

)

1,015

(42

)

Adjusted Income before Income Taxes

5,140

4,239

18,270

13,814

Provision for Income Taxes

1,065

892

3,281

2,386

Adjustment for OMSR/Merger Expenses **

33

(60

)

213

(9

)

Adjusted Provision for Income Taxes

1,098

832

3,494

2,377

Net Income

3,918

3,635

13,974

11,470

Adjustment for OMSR*/Merger Expenses

124

(228

)

802

(33

)

Adjusted Net Income

4,042

3,407

14,776

11,437

Diluted Earnings per Share

0.63

0.55

2.19

1.72

Adjustment for OMSR*/Merger Expenses

0.02

(0.03

)

0.13

(0.00

)

Adjusted Diluted Earnings per Share

$

0.65

$

0.52

$

2.31

$

1.71

Return on Average Assets

1.01

%

1.04

%

0.93

%

0.84

%

Adjustment for OMSR*/Merger Expenses

0.01

%

-0.02

%

0.05

%

0.00

%

Adjusted Return on Average Assets

1.02

%

1.02

%

0.98

%

0.84

%

*valuation adjustment to the Company's mortgage servicing rights

**tax effect is calculated using a 21% statutory federal corporate income tax rate

Earlier from Sb Financial

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