SBFG 8-K
Sb Financial Group, Inc. (SBFG)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 31, 2026
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Item 2.02. Results of Operations and Financial Condition.
On July 23, 2026, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the second quarter 2026. A copy of the July 23, 2026 news release is furnished as Exhibit 99.1 and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.
Item 9.01. Financial Statements and Exhibits.
(a) Not Applicable
(b) Not Applicable
(c) Not Applicable
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | News release issued by SB Financial Group, Inc. on July 23, 2026, reporting financial results for the second quarter 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SB FINANCIAL GROUP, INC. | ||
| Dated: July 31, 2026 | By: | /s/ Anthony V. Cosentino |
| Anthony V. Cosentino | ||
| Chief Financial Officer | ||
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Exhibit 99.1
SB Financial Group Announces Second Quarter 2026 Results
DEFIANCE, OH, July 23, 2026 -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the quarter ended June 30, 2026.
Second Quarter 2026 Highlights compared to the second quarter of the prior year include:
| ● | Net Income, GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.5 million, or $0.72 per DEPS, an improvement from the $3.9 million, or $0.60 per DEPS in the prior-year quarter. Net income, adjusted for Originated Mortgage Servicing Rights (“OMSR”) and merger costs, was $4.5 million, up 21.8 percent compared to $3.7 million for the prior-year period. Adjusted DEPS of $0.73 was also up 25.9 percent from the adjusted prior-year. |
| ● | Total loans reached $1.19 billion, reflecting an increase of $94.8 million, or 8.7 percent, from the prior-year quarter and an improvement of $8.4 million, or 0.71 percent, from the linked quarter. This performance marks SBFG's ninth consecutive quarter of expansion in our loan portfolio. |
| ● | Total deposits climbed to $1.39 billion, increasing by $141.3 million, or 11.3 percent, from the prior-year quarter, and up $19.3 million, or 1.4 percent, from the linked quarter. |
| ● | Tangible book value (“TBV”) per common share finished the quarter at $19.04, climbing $2.60 per share, or 15.8 percent, from $16.44 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $22.57 at quarter end. |
Six months ended June 30, 2026 Highlights compared to the same period of the prior-year:
| ● | GAAP net income increased to $8.8 million, a 46.3 percent expansion compared to the $6.0 million reported for the previous six months, and diluted EPS was $1.41, an improvement of 51.6 percent from $0.93. |
| ● | Net interest income rose to $25.7 million, representing a 9.7 percent improvement from the $23.4 million reported in the prior-year period. |
| ● | Noninterest income increased by 5.9 percent to $9.7 million compared to $9.2 million reported in the previous six months. |
| ● | Noninterest expense remained well controlled, decreasing by 0.8 percent to $24.1 million from $24.3 million in the prior-year period. |
| Earnings Highlights | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| ($ in thousands, except per share & ratios) | Jun. 2026 | Jun. 2025 | % Change | Jun. 2026 | Jun. 2025 | % Change | ||||||||||||||||||
| Operating revenue | $ | 17,941 | $ | 17,176 | 4.5 | % | $ | 35,365 | $ | 32,562 | 8.6 | % | ||||||||||||
| Interest income | 19,820 | 18,467 | 7.3 | % | 39,127 | 35,839 | 9.2 | % | ||||||||||||||||
| Interest expense | 6,866 | 6,339 | 8.3 | % | 13,461 | 12,432 | 8.3 | % | ||||||||||||||||
| Net interest income | 12,954 | 12,128 | 6.8 | % | 25,666 | 23,407 | 9.7 | % | ||||||||||||||||
| Provision for credit losses | 299 | 597 | 49.9 | % | 513 | 984 | -47.9 | % | ||||||||||||||||
| Noninterest income | 4,987 | 5,048 | -1.2 | % | 9,699 | 9,155 | 5.9 | % | ||||||||||||||||
| Noninterest expense | 12,137 | 11,852 | 2.4 | % | 24,066 | 24,262 | -0.8 | % | ||||||||||||||||
| Net income | 4,497 | 3,852 | 16.7 | % | 8,793 | 6,010 | 46.3 | % | ||||||||||||||||
| Adjusted Earnings per diluted share | 0.73 | 0.58 | 25.9 | % | 1.36 | 1.00 | 36.0 | % | ||||||||||||||||
| Earnings per diluted share | 0.72 | 0.60 | 20.0 | % | 1.41 | 0.93 | 51.6 | % | ||||||||||||||||
| Adjusted Return on Avg. Assets | 1.13 | % | 1.00 | % | 13.0 | % | 1.07 | % | 0.85 | % | 25.9 | % | ||||||||||||
| Return on average assets | 1.12 | % | 1.03 | % | 8.7 | % | 1.11 | % | 0.82 | % | 35.4 | % | ||||||||||||
| Adjusted Return on Avg. Equity | 12.55 | % | 11.29 | % | 11.2 | % | 11.81 | % | 10.54 | % | 12.0 | % | ||||||||||||
| Return on average equity | 12.44 | % | 11.67 | % | 6.6 | % | 12.24 | % | 9.19 | % | 33.2 | % | ||||||||||||
“Net income for the second quarter of 2026 was $4.5 million, a 16.7 percent increase from the prior-year quarter, with GAAP DEPS of $0.72, an improvement of 20.0 percent from the prior-year quarter,” said Mark A. Klein, Chairman, President, and Chief Executive Officer. “This marks our 62nd consecutive quarter of profitability and reflects the continued benefits of not only our expanded balance sheet scale, but also the sustained, robust performance of our diversified community banking and fee-based business lines.”
RESULTS OF OPERATIONS
In the second quarter of 2026, total operating revenue increased to $17.9 million, 4.5 percent improvement from $17.2 million in the prior-year quarter and 3.0 percent from $17.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income, which was partially offset by a modest reduction in noninterest income due to lower net mortgage servicing fees. Net interest income for the quarter totaled $13.0 million, compared with $12.1 million in the prior-year period and $12.7 million in the linked quarter. The year-over-year expansion was driven by a rise in interest income on loans, which climbed to $17.5 million. Total interest expense increased to $6.9 million, up 8.3 percent from $6.3 million in the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin decreased approximately 5 basis points from 3.48 percent in the prior-year quarter to 3.43 percent.
Total loans increased $94.8 million from the prior-year quarter and $8.4 million from the linked quarter. Total deposits at quarter end increased $141.3 million, or 11.3 percent, to $1.39 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across the Company’s markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of a diversified revenue business model.
Mortgage Loan Business
Net mortgage banking revenue for the quarter reached $1.9 million, a decrease of $236,000 from the prior-year quarter. Loan servicing fees added $934,000 to revenue, reflecting an increase of $30,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2026 was a negative $54,000, compared with a recapture of $159,000 in the second quarter of 2025.
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| Mortgage Banking | ||||||||||||||||||||||||
| ($ in thousands) | Jun. 2026 | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Prior Year Growth | ||||||||||||||||||
| Mortgage originations | $ | 79,346 | $ | 65,768 | $ | 72,398 | $ | 67,609 | $ | 97,901 | $ | (18,555 | ) | |||||||||||
| Mortgage sales | 70,253 | 53,420 | 70,361 | 66,408 | 74,313 | (4,060 | ) | |||||||||||||||||
| Mortgage servicing portfolio | 1,504,657 | 1,482,052 | 1,479,982 | 1,470,360 | 1,456,374 | 48,283 | ||||||||||||||||||
| Mortgage servicing rights | 15,953 | 15,728 | 15,254 | 15,347 | 15,458 | 495 | ||||||||||||||||||
| Revenue | ||||||||||||||||||||||||
| Loan servicing fees | 934 | 928 | 928 | 914 | 904 | 30 | ||||||||||||||||||
| OMSR amortization | (497 | ) | (529 | ) | (572 | ) | (455 | ) | (469 | ) | (28 | ) | ||||||||||||
| Net administrative fees | 437 | 399 | 356 | 459 | 435 | 2 | ||||||||||||||||||
| OMSR valuation adjustment | (54 | ) | 452 | (157 | ) | (301 | ) | 159 | (213 | ) | ||||||||||||||
| Net loan servicing fees | 383 | 851 | 199 | 158 | 594 | (211 | ) | |||||||||||||||||
| Gain on sale of mortgages | 1,541 | 978 | 1,272 | 1,328 | 1,566 | (25 | ) | |||||||||||||||||
| Mortgage banking revenue, net | $ | 1,924 | $ | 1,829 | $ | 1,471 | $ | 1,486 | $ | 2,160 | $ | (236 | ) | |||||||||||
Noninterest Income and Noninterest Expense
“Noninterest income for the second quarter of 2026 reached $5.0 million, proving highly resilient compared to the prior-year base of $5.0 million,” Mr. Klein noted. “Our wealth management fees improved to $955,000, from $859,000 a year ago, while title insurance contributed $577,000 to total revenue, illustrating the strength of our team's cross-functional internal referral strategies.”
| Noninterest Income/Noninterest Expense | ||||||||||||||||||||||||
| ($ in thousands, except ratios) | Jun. 2026 | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Prior Year Growth | ||||||||||||||||||
| Noninterest Income (NII) | $ | 4,987 | $ | 4,712 | $ | 3,708 | $ | 4,244 | $ | 5,048 | $ | (61 | ) | |||||||||||
| NII / Total Revenue | 27.8 | % | 27.0 | % | 22.6 | % | 25.6 | % | 29.4 | % | -1.6 | % | ||||||||||||
| NII / Average Assets | 1.2 | % | 1.2 | % | 1.0 | % | 1.1 | % | 1.4 | % | -0.2 | % | ||||||||||||
| Total Revenue Growth | 4.5 | % | 13.3 | % | 6.3 | % | 15.9 | % | 22.3 | % | -17.8 | % | ||||||||||||
| Noninterest Expense (NIE) | $ | 12,137 | $ | 11,929 | $ | 11,239 | $ | 11,498 | $ | 11,852 | $ | 285 | ||||||||||||
| Efficiency Ratio | 67.3 | % | 68.1 | % | 68.1 | % | 69.0 | % | 68.9 | % | -1.6 | % | ||||||||||||
| NIE / Average Assets | 3.0 | % | 3.1 | % | 2.9 | % | 3.0 | % | 3.2 | % | -0.2 | % | ||||||||||||
| Net Noninterest Expense/Avg. Assets | -1.8 | % | -1.9 | % | -1.9 | % | -1.9 | % | -1.8 | % | 0.0 | % | ||||||||||||
| Total Expense Growth | 2.4 | % | -3.9 | % | 2.1 | % | 4.5 | % | 11.1 | % | -8.7 | % | ||||||||||||
Noninterest expense for the second quarter of 2026 rose 2.4 percent to $12.1 million from $11.9 million in the prior-year quarter, predominantly driven by an increase of $410,000 in salaries and employee benefits, which totaled $7.0 million, to support revenue-producing lenders. This increase was heavily mitigated by lower data-processing expenses, which decreased to $693,000 from $888,000 in the prior-year quarter as previous merger-related and systems-integration costs fully wound down. “Our core efficiency ratio for the second quarter of 2026 improved to 67.32 percent, compared to 68.90 percent in the second quarter of 2025 and 68.12 percent in the linked quarter,” stated Mr. Klein. “This positive operating leverage reflects our disciplined approach to managing overhead while proactively funding expansion in our growth markets.”
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Balance Sheet
As of June 30, 2026, SB Financial reported total assets of $1.62 billion, representing an increase of $74.7 million from December 31, 2025, and $133.8 million, or 9.0 percent, from June 30, 2025. The year-over-year asset growth was primarily driven by steady organic loan generation across commercial and agricultural lines. Cash and due from banks increased by $58.7 million from the prior-year period to $138.2 million, supported by sustained deposit gathering and investment portfolio cash flows. Key balance-sheet metrics for the quarter included a loan-to-deposit ratio of 85.51 percent and a loan-to-asset ratio of 73.43 percent, both of which remained well-aligned with target operating bands.
Total deposits at quarter end reached $1.39 billion, an increase of $141.3 million, or 11.3 percent, from the prior-year quarter, driven by strong client retention and expanded commercial deposit relationships. Noninterest-bearing demand deposits totaled $258.6 million, accounting for 18.6 percent of the total deposit portfolio. Shareholders’ equity finished the period at $146.7 million, representing an increase of $13.1 million, or 9.8 percent, from the prior-year period.
During the second quarter, SB Financial repurchased approximately 28,000 shares, roughly flat compared to the linked quarter, reflecting a measured approach to capital allocation and ongoing evaluation of market dynamics and corporate priorities during the period. The Company remains committed to a prudent capital allocation strategy, supporting shareholder returns through dividends and share buybacks while preserving the financial flexibility to fund organic expansion, strategic initiatives, and capital stability.
“As we enter the second half of 2026, we are operating from a strong fundamental foundation characterized by top-tier capital ratios, exceptional credit quality, and a resilient core deposit franchise,” stated Mr. Klein. “Our consistent organic loan expansion highlights our strong client relationship model and localized lending expertise, while our robust reserve coverage and near-zero delinquency levels reflect our disciplined approach to credit administration. Supported by our diverse fee-generating businesses and careful expense management, we are well-positioned to maintain positive operating leverage and drive long-term value for our shareholders.”
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| Loan Balances | ||||||||||||||||||||||||
| ($ in thousands, except ratios) | Jun. 2026 | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Annual Growth | ||||||||||||||||||
| Commercial | $ | 111,128 | $ | 112,226 | $ | 113,878 | $ | 117,581 | $ | 118,984 | $ | (7,856 | ) | |||||||||||
| % of Total | 9.3 | % | 9.5 | % | 9.6 | % | 10.6 | % | 10.9 | % | -6.6 | % | ||||||||||||
| Commercial RE | 611,274 | 601,556 | 596,983 | 535,307 | 525,671 | 85,603 | ||||||||||||||||||
| % of Total | 51.4 | % | 50.9 | % | 50.6 | % | 48.2 | % | 48.0 | % | 16.3 | % | ||||||||||||
| Agriculture | 81,341 | 78,569 | 76,514 | 65,150 | 60,924 | 20,417 | ||||||||||||||||||
| % of Total | 6.8 | % | 6.7 | % | 6.5 | % | 5.9 | % | 5.6 | % | 33.5 | % | ||||||||||||
| Residential RE | 295,481 | 299,741 | 304,741 | 309,140 | 310,126 | (14,645 | ) | |||||||||||||||||
| % of Total | 24.8 | % | 25.4 | % | 25.8 | % | 27.8 | % | 28.3 | % | -4.7 | % | ||||||||||||
| Consumer & Other | 90,335 | 89,043 | 88,475 | 83,367 | 79,014 | 11,321 | ||||||||||||||||||
| % of Total | 7.6 | % | 7.5 | % | 7.5 | % | 7.5 | % | 7.2 | % | 14.3 | % | ||||||||||||
| Total Loans | $ | 1,189,559 | $ | 1,181,135 | $ | 1,180,591 | $ | 1,110,545 | $ | 1,094,719 | $ | 94,840 | ||||||||||||
| Total Growth Percentage | 8.7 | % | ||||||||||||||||||||||
| Deposit Balances | ||||||||||||||||||||||||
| ($ in thousands, except ratios) | Jun. 2026 | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Annual Growth | ||||||||||||||||||
| Non-Int DDA | $ | 258,576 | $ | 248,239 | $ | 254,063 | $ | 246,725 | $ | 241,245 | $ | 17,331 | ||||||||||||
| % of Total | 18.6 | % | 18.1 | % | 19.4 | % | 19.5 | % | 19.3 | % | 7.2 | % | ||||||||||||
| Interest DDA | 206,593 | 215,594 | 202,501 | 194,420 | 205,581 | 1,012 | ||||||||||||||||||
| % of Total | 14.9 | % | 15.7 | % | 15.5 | % | 15.4 | % | 16.4 | % | 0.5 | % | ||||||||||||
| Savings | 325,675 | 333,662 | 296,484 | 290,111 | 282,311 | 43,364 | ||||||||||||||||||
| % of Total | 23.4 | % | 24.3 | % | 22.7 | % | 23.0 | % | 22.6 | % | 15.4 | % | ||||||||||||
| Money Market | 315,363 | 300,028 | 280,896 | 261,953 | 249,536 | 65,827 | ||||||||||||||||||
| % of Total | 22.7 | % | 21.9 | % | 21.5 | % | 20.7 | % | 20.0 | % | 26.4 | % | ||||||||||||
| Time Deposits | 284,940 | 274,300 | 273,300 | 269,313 | 271,149 | 13,791 | ||||||||||||||||||
| % of Total | 20.5 | % | 20.0 | % | 20.9 | % | 21.3 | % | 21.7 | % | 5.1 | % | ||||||||||||
| Total Deposits | $ | 1,391,147 | $ | 1,371,823 | $ | 1,307,244 | $ | 1,262,522 | $ | 1,249,822 | $ | 141,325 | ||||||||||||
| Total Growth Percentage | 11.3 | % | ||||||||||||||||||||||
Asset Quality
As of June 30, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.4 million, representing 0.27 percent of total assets, reflecting a decrease of $1.8 million from $6.2 million (0.41 percent of total assets) in the prior-year quarter. Within total nonperforming assets, nonaccruing loans declined to $3.5 million, while foreclosed properties and other assets stood at $936,000. The allowance for credit losses remained strong at 1.38 percent of total loans, providing coverage of 470.2 percent of nonperforming loans. This reserve level represents an improvement from the prior-year period, reflecting the Company’s disciplined credit risk framework. Annualized net loan charge-offs to average loans remained very low at 6 basis points, compared to 1 basis point in the linked quarter and 2 basis points in the prior-year quarter, with gross charge-offs totaling $196,000. Collectively, these metrics underscore SB Financial's continued focus on disciplined underwriting and effective credit administration.
“Our credit results for the second quarter continue to demonstrate excellent stability across the loan portfolio and steady progress in resolving nonperforming assets,” said Mr. Klein. “With nonperforming assets declining compared to the linked quarter and our allowance for credit losses providing coverage of nonperforming loans, our reserve position remains highly conservative. We remain committed to diligent underwriting and proactive risk management to protect the balance sheet as we support measured loan expansion across our markets.”
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| Nonperforming Assets | Reconcile to 10-Q | Annual | ||||||||||||||||||||||
| ($ in thousands, except ratios) | Jun. 2026 | Mar. 2026 | Dec. 2025 | Sep. 2025 | Jun. 2025 | Change | ||||||||||||||||||
| Commercial & Agriculture | $ | 1,304 | $ | 1,359 | $ | 2,256 | $ | 2,243 | $ | 3,306 | $ | (2,002 | ) | |||||||||||
| % of Total Com./Ag. loans | 0.68 | % | 0.71 | % | 1.18 | % | 1.23 | % | 1.84 | % | -60.6 | % | ||||||||||||
| Commercial RE | 339 | 668 | 771 | 778 | 784 | (445 | ) | |||||||||||||||||
| % of Total CRE loans | 0.06 | % | 0.11 | % | 0.13 | % | 0.15 | % | 0.15 | % | -56.8 | % | ||||||||||||
| Residential RE | 1,476 | 1,439 | 1,322 | 1,400 | 1,585 | (109 | ) | |||||||||||||||||
| % of Total Res. RE loans | 0.50 | % | 0.48 | % | 0.43 | % | 0.45 | % | 0.51 | % | -6.9 | % | ||||||||||||
| Consumer & Other | 367 | 233 | 230 | 195 | 197 | 170 | ||||||||||||||||||
| % of Total Con./Oth. loans | 0.41 | % | 0.26 | % | 0.26 | % | 0.23 | % | 0.25 | % | 86.3 | % | ||||||||||||
| Total Nonaccruing Loans | 3,486 | 3,699 | 4,579 | 4,616 | 5,872 | (2,386 | ) | |||||||||||||||||
| % of Total loans | 0.29 | % | 0.31 | % | 0.39 | % | 0.42 | % | 0.54 | % | -40.6 | % | ||||||||||||
| Foreclosed Assets and Other Assets | 936 | 974 | 104 | 237 | 284 | 652 | ||||||||||||||||||
| Total Change (%) | N/M | |||||||||||||||||||||||
| Total Nonperforming Assets | $ | 4,422 | $ | 4,673 | $ | 4,683 | $ | 4,853 | $ | 6,156 | $ | (1,734 | ) | |||||||||||
| % of Total assets | 0.27 | % | 0.29 | % | 0.30 | % | 0.32 | % | 0.41 | % | -28.17 | % | ||||||||||||
Webcast and Conference Call
The Company will hold the second quarter 2026 earnings conference call and webcast on July 24, 2026, at 11:00 a.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.
About SB Financial Group
Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in which SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.
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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
Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
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SB FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS - (Unaudited)
| June | March | December | September | June | ||||||||||||||||
| ($ in thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 138,152 | $ | 126,293 | $ | 71,543 | $ | 85,025 | $ | 79,463 | ||||||||||
| Interest bearing time deposits | 2,455 | 1,965 | 1,140 | 2,025 | 1,565 | |||||||||||||||
| Available-for-sale securities | 179,026 | 183,626 | 188,626 | 193,190 | 195,955 | |||||||||||||||
| Loans held for sale | 7,438 | 7,203 | 1,761 | 4,736 | 12,774 | |||||||||||||||
| Loans, net of unearned income | 1,189,559 | 1,181,135 | 1,180,591 | 1,110,545 | 1,094,719 | |||||||||||||||
| Allowance for credit losses | (16,395 | ) | (16,388 | ) | (16,114 | ) | (15,943 | ) | (15,645 | ) | ||||||||||
| Premises and equipment, net | 21,088 | 21,295 | 21,688 | 21,764 | 21,857 | |||||||||||||||
| Federal Reserve and FHLB Stock, at cost | 5,502 | 5,463 | 5,610 | 5,466 | 5,466 | |||||||||||||||
| Foreclosed assets | 936 | 974 | 104 | 237 | 284 | |||||||||||||||
| Interest receivable | 5,455 | 5,499 | 5,490 | 5,455 | 5,299 | |||||||||||||||
| Goodwill | 27,158 | 27,158 | 27,158 | 27,158 | 27,158 | |||||||||||||||
| Cash value of life insurance | 32,354 | 32,401 | 32,208 | 32,004 | 31,060 | |||||||||||||||
| Mortgage servicing rights | 15,953 | 15,728 | 15,254 | 15,347 | 15,458 | |||||||||||||||
| Other assets | 11,383 | 12,246 | 10,308 | 9,254 | 10,888 | |||||||||||||||
| Total assets | $ | 1,620,064 | $ | 1,604,598 | $ | 1,545,367 | $ | 1,496,263 | $ | 1,486,301 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Non interest bearing demand | $ | 258,576 | $ | 248,239 | $ | 254,063 | $ | 246,725 | $ | 241,245 | ||||||||||
| Interest bearing demand | 206,593 | 215,594 | 202,501 | 194,420 | 205,581 | |||||||||||||||
| Savings | 325,675 | 333,662 | 296,484 | 290,111 | 282,311 | |||||||||||||||
| Money market | 315,363 | 300,028 | 280,896 | 261,953 | 249,536 | |||||||||||||||
| Time deposits | 284,940 | 274,300 | 273,300 | 269,313 | 271,149 | |||||||||||||||
| Total deposits | 1,391,147 | 1,371,823 | 1,307,244 | 1,262,522 | 1,249,822 | |||||||||||||||
| Short-term borrowings | 6,732 | 9,433 | 9,230 | 10,976 | 15,640 | |||||||||||||||
| Federal Home Loan Bank advances | 22,500 | 27,500 | 35,000 | 35,000 | 35,000 | |||||||||||||||
| Trust preferred securities | 10,310 | 10,310 | 10,310 | 10,310 | 10,310 | |||||||||||||||
| Subordinated debt net of issuance costs | 19,763 | 19,751 | 19,739 | 19,726 | 19,715 | |||||||||||||||
| Interest payable | 2,470 | 2,553 | 2,460 | 2,739 | 2,258 | |||||||||||||||
| Other liabilities | 20,402 | 19,573 | 20,148 | 18,051 | 19,908 | |||||||||||||||
| Total liabilities | 1,473,324 | 1,460,943 | 1,404,131 | 1,359,324 | 1,352,653 | |||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||
| Common stock | 61,319 | 61,319 | 61,319 | 61,319 | 61,319 | |||||||||||||||
| Additional paid-in capital | 15,275 | 15,065 | 15,160 | 15,086 | 15,139 | |||||||||||||||
| Retained earnings | 133,125 | 129,631 | 126,311 | 123,370 | 120,273 | |||||||||||||||
| Accumulated other comprehensive loss | (21,854 | ) | (21,861 | ) | (21,481 | ) | (23,412 | ) | (25,492 | ) | ||||||||||
| Treasury stock | (41,125 | ) | (40,499 | ) | (40,073 | ) | (39,424 | ) | (37,591 | ) | ||||||||||
| Total shareholders' equity | 146,740 | 143,655 | 141,236 | 136,939 | 133,648 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,620,064 | $ | 1,604,598 | $ | 1,545,367 | $ | 1,496,263 | $ | 1,486,301 | ||||||||||
8
SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
| At and for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| June | March | December | September | June | June | June | ||||||||||||||||||||||
| ($ in thousands, except per share & ratios) | 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Interest income | ||||||||||||||||||||||||||||
| Loans | ||||||||||||||||||||||||||||
| Taxable | $ | 17,498 | $ | 17,246 | $ | 17,234 | $ | 16,449 | $ | 16,059 | $ | 34,744 | $ | 31,303 | ||||||||||||||
| Tax exempt | 98 | 99 | 107 | 117 | 116 | 197 | 231 | |||||||||||||||||||||
| Securities | ||||||||||||||||||||||||||||
| Taxable | 1,006 | 1,029 | 1,096 | 1,097 | 1,133 | 2,035 | 2,302 | |||||||||||||||||||||
| Tax exempt | 36 | 36 | 36 | 35 | 35 | 72 | 73 | |||||||||||||||||||||
| Other interest income | 1,182 | 897 | 799 | 1,111 | 1,124 | 2,079 | 1,930 | |||||||||||||||||||||
| Total interest income | 19,820 | 19,307 | 19,272 | 18,809 | 18,467 | 39,127 | 35,839 | |||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||
| Deposits | 6,237 | 5,957 | 5,820 | 5,721 | 5,597 | 12,194 | 10,949 | |||||||||||||||||||||
| Repurchase agreements & other | 7 | 14 | 22 | 28 | 21 | 21 | 45 | |||||||||||||||||||||
| Federal Home Loan Bank advances | 234 | 285 | 370 | 369 | 366 | 519 | 728 | |||||||||||||||||||||
| Trust preferred securities | 145 | 144 | 154 | 162 | 161 | 289 | 321 | |||||||||||||||||||||
| Subordinated debt | 243 | 195 | 194 | 195 | 194 | 438 | 389 | |||||||||||||||||||||
| Total interest expense | 6,866 | 6,595 | 6,560 | 6,475 | 6,339 | 13,461 | 12,432 | |||||||||||||||||||||
| Net interest income | 12,954 | 12,712 | 12,712 | 12,334 | 12,128 | 25,666 | 23,407 | |||||||||||||||||||||
| Provision for credit losses | 299 | 214 | 198 | 124 | 597 | 513 | 984 | |||||||||||||||||||||
| Net interest income after provision | ||||||||||||||||||||||||||||
| for credit losses | 12,655 | 12,498 | 12,514 | 12,210 | 11,531 | 25,153 | 22,423 | |||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||||||||||
| Wealth management fees | 955 | 941 | 900 | 912 | 859 | 1,896 | 1,723 | |||||||||||||||||||||
| Customer service fees | 917 | 910 | 892 | 887 | 886 | 1,827 | 1,765 | |||||||||||||||||||||
| Gain on sale of mtg. loans & OMSR | 1,541 | 978 | 1,272 | 1,328 | 1,566 | 2,519 | 2,415 | |||||||||||||||||||||
| Mortgage loan servicing fees, net | 383 | 851 | 199 | 158 | 594 | 1,234 | 1,205 | |||||||||||||||||||||
| Gain on sale of non-mortgage loans | 62 | 144 | 38 | 8 | 82 | 206 | 97 | |||||||||||||||||||||
| Title insurance revenue | 577 | 485 | 525 | 544 | 582 | 1,062 | 979 | |||||||||||||||||||||
| Gain (loss) on sale of assets | (9 | ) | 8 | - | - | - | (1 | ) | - | |||||||||||||||||||
| Other | 561 | 395 | (118 | ) | 407 | 479 | 956 | 971 | ||||||||||||||||||||
| Total noninterest income | 4,987 | 4,712 | 3,708 | 4,244 | 5,048 | 9,699 | 9,155 | |||||||||||||||||||||
| Noninterest expense | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 7,005 | 6,096 | 6,047 | 6,198 | 6,595 | 13,101 | 12,832 | |||||||||||||||||||||
| Net occupancy expense | 802 | 882 | 822 | 801 | 793 | 1,684 | 1,686 | |||||||||||||||||||||
| Equipment expense | 1,226 | 1,244 | 1,154 | 1,188 | 1,121 | 2,470 | 2,193 | |||||||||||||||||||||
| Data processing fees | 693 | 726 | 790 | 723 | 888 | 1,419 | 2,327 | |||||||||||||||||||||
| Professional fees | 844 | 1,016 | 805 | 863 | 892 | 1,860 | 1,926 | |||||||||||||||||||||
| Marketing expense | 255 | 277 | 122 | 174 | 190 | 532 | 355 | |||||||||||||||||||||
| Telephone and communication expense | 126 | 118 | 124 | 123 | 125 | 244 | 264 | |||||||||||||||||||||
| Postage and delivery expense | 146 | 187 | 140 | 157 | 107 | 333 | 244 | |||||||||||||||||||||
| State, local and other taxes | 221 | 288 | 331 | 268 | 268 | 509 | 492 | |||||||||||||||||||||
| Employee expense | 177 | 184 | 158 | 255 | 176 | 361 | 350 | |||||||||||||||||||||
| Other expenses | 642 | 911 | 746 | 748 | 697 | 1,553 | 1,593 | |||||||||||||||||||||
| Total noninterest expense | 12,137 | 11,929 | 11,239 | 11,498 | 11,852 | 24,066 | 24,262 | |||||||||||||||||||||
| Income before income tax expense | 5,505 | 5,281 | 4,983 | 4,956 | 4,727 | 10,786 | 7,316 | |||||||||||||||||||||
| Income tax expense | 1,008 | 985 | 1,065 | 910 | 875 | 1,993 | 1,306 | |||||||||||||||||||||
| Net income | $ | 4,497 | $ | 4,296 | $ | 3,918 | $ | 4,046 | $ | 3,852 | $ | 8,793 | $ | 6,010 | ||||||||||||||
| Common share data: | ||||||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.72 | $ | 0.69 | $ | 0.63 | $ | 0.64 | $ | 0.60 | $ | 1.41 | $ | 0.93 | ||||||||||||||
| Diluted earnings per common share | $ | 0.72 | $ | 0.69 | $ | 0.63 | $ | 0.64 | $ | 0.60 | $ | 1.41 | $ | 0.93 | ||||||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||||||||||
| Basic: | 6,205 | 6,230 | 6,252 | 6,297 | 6,448 | 6,218 | 6,464 | |||||||||||||||||||||
| Diluted: | 6,220 | 6,243 | 6,266 | 6,311 | 6,459 | 6,233 | 6,483 | |||||||||||||||||||||
9
SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
| At and for the Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| ($ in thousands, except per share & ratios) | June | March | December | September | June | June | June | |||||||||||||||||||||
| SUMMARY OF OPERATIONS | 2026 | 2026 | 2025 | 2025 | 2025 | 2026 | 2025 | |||||||||||||||||||||
| Net interest income | $ | 12,954 | $ | 12,712 | $ | 12,712 | $ | 12,334 | $ | 12,128 | $ | 25,666 | $ | 23,407 | ||||||||||||||
| Tax-equivalent adjustment | 36 | 36 | 38 | 40 | 40 | 72 | 81 | |||||||||||||||||||||
| Tax-equivalent net interest income | 12,990 | 12,748 | 12,750 | 12,374 | 12,168 | 25,738 | 23,488 | |||||||||||||||||||||
| Provision for credit loss | 299 | 214 | 198 | 124 | 597 | 513 | 984 | |||||||||||||||||||||
| Noninterest income | 4,987 | 4,712 | 3,708 | 4,244 | 5,048 | 9,699 | 9,155 | |||||||||||||||||||||
| Total operating revenue | 17,941 | 17,424 | 16,420 | 16,578 | 17,176 | 35,365 | 32,562 | |||||||||||||||||||||
| Noninterest expense | 12,137 | 11,929 | 11,239 | 11,498 | 11,852 | 24,066 | 24,262 | |||||||||||||||||||||
| Pre-tax pre-provision income | 5,804 | 5,495 | 5,181 | 5,080 | 5,324 | 11,299 | 8,300 | |||||||||||||||||||||
| Net income | 4,497 | 4,296 | 3,918 | 4,046 | 3,852 | 8,793 | 6,010 | |||||||||||||||||||||
| PER SHARE INFORMATION: | ||||||||||||||||||||||||||||
| Basic earnings per share (EPS) | 0.72 | 0.69 | 0.63 | 0.64 | 0.60 | 1.41 | 0.93 | |||||||||||||||||||||
| Diluted earnings per share | 0.72 | 0.69 | 0.63 | 0.64 | 0.60 | 1.41 | 0.93 | |||||||||||||||||||||
| Common dividends | 0.160 | 0.155 | 0.155 | 0.150 | 0.150 | 0.315 | 0.295 | |||||||||||||||||||||
| Book value per common share | 23.70 | 23.10 | 22.65 | 21.85 | 21.02 | 23.70 | 21.02 | |||||||||||||||||||||
| Tangible book value per common share (TBV) | 19.04 | 18.45 | 18.00 | 17.21 | 16.44 | 19.04 | 16.44 | |||||||||||||||||||||
| Market price per common share | 25.27 | 21.00 | 22.27 | 19.29 | 19.10 | 25.27 | 19.10 | |||||||||||||||||||||
| Market price to TBV | 132.7 | % | 113.8 | % | 123.7 | % | 112.1 | % | 116.2 | % | 132.7 | % | 116.2 | % | ||||||||||||||
| Market price to trailing 12 month EPS | 9.4 | 8.2 | 10.1 | 9.1 | 10.4 | 9.4 | 10.4 | |||||||||||||||||||||
| PERFORMANCE RATIOS: | ||||||||||||||||||||||||||||
| Return on average assets (ROAA) | 1.12 | % | 1.10 | % | 1.01 | % | 1.07 | % | 1.03 | % | 1.11 | % | 0.82 | % | ||||||||||||||
| Pre-tax pre-provision ROAA | 1.45 | % | 1.41 | % | 1.34 | % | 1.34 | % | 1.42 | % | 1.52 | % | 1.21 | % | ||||||||||||||
| Return on average equity (ROE) | 12.44 | % | 12.04 | % | 11.08 | % | 12.08 | % | 11.67 | % | 12.24 | % | 9.19 | % | ||||||||||||||
| Return on average tangible equity | 15.53 | % | 15.06 | % | 13.97 | % | 15.47 | % | 14.97 | % | 15.30 | % | 11.64 | % | ||||||||||||||
| Efficiency ratio | 67.32 | % | 68.12 | % | 68.09 | % | 69.00 | % | 68.90 | % | 67.72 | % | 74.14 | % | ||||||||||||||
| Earning asset yield | 5.26 | % | 5.29 | % | 5.32 | % | 5.31 | % | 5.29 | % | 5.26 | % | 5.25 | % | ||||||||||||||
| Cost of interest bearing liabilities | 2.34 | % | 2.31 | % | 2.34 | % | 2.33 | % | 2.33 | % | 2.31 | % | 2.30 | % | ||||||||||||||
| Net interest margin | 3.43 | % | 3.48 | % | 3.51 | % | 3.48 | % | 3.48 | % | 3.45 | % | 3.43 | % | ||||||||||||||
| Tax equivalent effect | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||
| Net interest margin, tax equivalent | 3.44 | % | 3.49 | % | 3.52 | % | 3.50 | % | 3.49 | % | 3.46 | % | 3.44 | % | ||||||||||||||
| Non interest income/Average assets | 1.24 | % | 1.21 | % | 0.96 | % | 1.12 | % | 1.35 | % | 1.23 | % | 1.25 | % | ||||||||||||||
| Non interest expense/Average assets | 3.03 | % | 3.06 | % | 2.90 | % | 3.04 | % | 3.17 | % | 3.04 | % | 3.31 | % | ||||||||||||||
| Net noninterest expense/Average assets | -1.78 | % | -1.85 | % | -1.94 | % | -1.92 | % | -1.82 | % | -1.82 | % | -2.06 | % | ||||||||||||||
| ASSET QUALITY RATIOS: | ||||||||||||||||||||||||||||
| Gross charge-offs | 196 | 33 | 133 | 11 | 49 | 229 | 135 | |||||||||||||||||||||
| Recoveries | 3 | 8 | 3 | 9 | 3 | 10 | 5 | |||||||||||||||||||||
| Net charge-offs | 193 | 25 | 130 | 2 | 46 | 219 | 130 | |||||||||||||||||||||
| Nonperforming loans/Total loans | 0.29 | % | 0.31 | % | 0.39 | % | 0.42 | % | 0.54 | % | 0.29 | % | 0.54 | % | ||||||||||||||
| Nonperforming assets/Loans & OREO | 0.37 | % | 0.40 | % | 0.40 | % | 0.44 | % | 0.56 | % | 0.37 | % | 0.56 | % | ||||||||||||||
| Nonperforming assets/Total assets | 0.27 | % | 0.29 | % | 0.30 | % | 0.32 | % | 0.41 | % | 0.27 | % | 0.41 | % | ||||||||||||||
| Allowance for credit loss/Nonperforming loans | 470.31 | % | 443.04 | % | 351.91 | % | 345.39 | % | 266.43 | % | 470.31 | % | 266.43 | % | ||||||||||||||
| Allowance for credit loss/Total loans | 1.38 | % | 1.39 | % | 1.36 | % | 1.44 | % | 1.43 | % | 1.38 | % | 1.43 | % | ||||||||||||||
| Net loan charge-offs/Average loans (ann.) | 0.06 | % | 0.01 | % | 0.04 | % | 0.00 | % | 0.02 | % | 0.04 | % | 0.02 | % | ||||||||||||||
| CAPITAL & LIQUIDITY RATIOS: | ||||||||||||||||||||||||||||
| Loans/ Deposits | 85.51 | % | 86.10 | % | 90.31 | % | 87.96 | % | 87.59 | % | 85.51 | % | 87.59 | % | ||||||||||||||
| Equity/ Assets | 9.06 | % | 8.95 | % | 9.14 | % | 9.15 | % | 8.99 | % | 9.06 | % | 8.99 | % | ||||||||||||||
| Tangible equity/Tangible assets | 7.41 | % | 7.28 | % | 7.40 | % | 7.35 | % | 7.17 | % | 7.41 | % | 7.17 | % | ||||||||||||||
| Common equity tier 1 ratio (Bank) | 12.37 | % | 12.11 | % | 11.78 | % | 12.48 | % | 12.53 | % | 12.37 | % | 12.53 | % | ||||||||||||||
| END OF PERIOD BALANCES | ||||||||||||||||||||||||||||
| Total assets | 1,620,064 | 1,604,598 | 1,545,367 | 1,496,263 | 1,486,301 | 1,620,064 | 1,486,301 | |||||||||||||||||||||
| Total loans | 1,189,559 | 1,181,135 | 1,180,591 | 1,110,545 | 1,094,719 | 1,189,559 | 1,094,719 | |||||||||||||||||||||
| Deposits | 1,391,147 | 1,371,823 | 1,307,244 | 1,262,522 | 1,249,822 | 1,391,147 | 1,249,822 | |||||||||||||||||||||
| Shareholders equity | 146,740 | 143,655 | 141,236 | 136,939 | 133,648 | 146,740 | 133,648 | |||||||||||||||||||||
| Goodwill and intangibles | 28,870 | 28,929 | 28,989 | 29,048 | 29,107 | 28,870 | 29,107 | |||||||||||||||||||||
| Tangible equity | 117,870 | 114,726 | 112,247 | 107,891 | 104,541 | 117,870 | 104,541 | |||||||||||||||||||||
| Mortgage servicing portfolio | 1,504,657 | 1,482,052 | 1,479,982 | 1,470,360 | 1,456,374 | 1,504,657 | 1,456,374 | |||||||||||||||||||||
| Wealth/Brokerage assets under care | 585,919 | 556,930 | 566,004 | 563,036 | 536,836 | 585,919 | 536,836 | |||||||||||||||||||||
| Total assets under care | 3,710,640 | 3,643,580 | 3,591,353 | 3,529,659 | 3,479,511 | 3,710,640 | 3,479,511 | |||||||||||||||||||||
| Full-time equivalent employees | 258 | 258 | 252 | 253 | 256 | 258 | 256 | |||||||||||||||||||||
| Period end common shares outstanding | 6,191 | 6,219 | 6,236 | 6,268 | 6,359 | 6,191 | 6,359 | |||||||||||||||||||||
| Market capitalization (all) | 156,436 | 130,597 | 138,883 | 120,907 | 121,453 | 156,436 | 121,453 | |||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||
| Total assets | 1,608,355 | 1,579,781 | 1,536,215 | 1,502,389 | 1,498,756 | 1,594,416 | 1,479,613 | |||||||||||||||||||||
| Total earning assets | 1,512,017 | 1,479,667 | 1,436,207 | 1,404,330 | 1,399,485 | 1,498,829 | 1,377,780 | |||||||||||||||||||||
| Total loans | 1,193,207 | 1,186,225 | 1,158,567 | 1,104,175 | 1,094,199 | 1,184,307 | 1,085,313 | |||||||||||||||||||||
| Deposits | 1,381,439 | 1,347,351 | 1,299,512 | 1,270,783 | 1,270,798 | 1,364,852 | 1,249,885 | |||||||||||||||||||||
| Shareholders equity | 145,034 | 144,659 | 140,315 | 132,866 | 132,353 | 144,816 | 131,849 | |||||||||||||||||||||
| Goodwill and intangibles | 28,899 | 28,959 | 29,027 | 29,077 | 29,116 | 28,929 | 27,742 | |||||||||||||||||||||
| Tangible equity | 116,135 | 115,700 | 111,288 | 103,789 | 103,237 | 115,887 | 104,107 | |||||||||||||||||||||
| Average basic shares outstanding | 6,205 | 6,230 | 6,252 | 6,297 | 6,448 | 6,218 | 6,464 | |||||||||||||||||||||
| Average diluted shares outstanding | 6,220 | 6,243 | 6,266 | 6,311 | 6,459 | 6,233 | 6,483 | |||||||||||||||||||||
10
SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three & Six Months Ended Jun. 30, 2026 and 2025
| Three Months Ended Jun. 30, 2026 | Three Months Ended Jun. 30, 2025 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| ($ in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Taxable securities | $ | 182,269 | $ | 1,006 | 2.21 | % | $ | 198,558 | $ | 1,133 | 2.29 | % | ||||||||||||
| Overnight Cash | 131,774 | 1,182 | 3.60 | % | 101,964 | 1,124 | 4.42 | % | ||||||||||||||||
| Nontaxable securities | 4,767 | 36 | 3.03 | % | 4,764 | 35 | 2.95 | % | ||||||||||||||||
| Loans, net | 1,193,207 | 17,596 | 5.91 | % | 1,094,199 | 16,176 | 5.93 | % | ||||||||||||||||
| Total earning assets | 1,512,017 | 19,820 | 5.26 | % | 1,399,485 | 18,468 | 5.29 | % | ||||||||||||||||
| Cash on hand | 5,464 | 4,951 | ||||||||||||||||||||||
| Allowance for loan losses | (16,460 | ) | (15,483 | ) | ||||||||||||||||||||
| Premises and equipment | 21,245 | 21,719 | ||||||||||||||||||||||
| Other assets | 86,089 | 88,084 | ||||||||||||||||||||||
| Total assets | $ | 1,608,355 | $ | 1,498,756 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, MMDA and interest bearing demand | $ | 836,830 | $ | 3,949 | 1.89 | % | $ | 740,677 | $ | 3,223 | 1.75 | % | ||||||||||||
| Time deposits | 279,469 | 2,288 | 3.28 | % | 276,376 | 2,374 | 3.45 | % | ||||||||||||||||
| Repurchase agreements & other | 7,357 | 7 | 0.38 | % | 10,518 | 21 | 0.80 | % | ||||||||||||||||
| Advances from Federal Home Loan Bank | 22,995 | 234 | 4.08 | % | 35,000 | 366 | 4.19 | % | ||||||||||||||||
| Trust preferred securities | 10,310 | 145 | 5.64 | % | 10,310 | 161 | 6.26 | % | ||||||||||||||||
| Subordinated debt | 19,755 | 243 | 4.93 | % | 19,707 | 194 | 3.95 | % | ||||||||||||||||
| Total interest bearing liabilities | 1,176,716 | 6,866 | 2.34 | % | 1,092,588 | 6,339 | 2.33 | % | ||||||||||||||||
| Non interest bearing demand | 265,140 | - | 253,745 | - | ||||||||||||||||||||
| Total funding | 1,441,856 | 1.91 | % | 1,346,333 | 1.89 | % | ||||||||||||||||||
| Other liabilities | 21,465 | 20,070 | ||||||||||||||||||||||
| Total liabilities | 1,463,321 | 1,366,403 | ||||||||||||||||||||||
| Equity | 145,034 | 132,353 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,608,355 | $ | 1,498,756 | ||||||||||||||||||||
| Net interest income | $ | 12,954 | $ | 12,129 | ||||||||||||||||||||
| Net interest income as a percent of average interest-earning assets - GAAP measure | 3.44 | % | 3.48 | % | ||||||||||||||||||||
| Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis | 3.44 | % | 3.49 | % | ||||||||||||||||||||
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| Six Months Ended Jun. 30, 2026 | Six Months Ended Jun. 30, 2025 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Taxable securities | $ | 185,421 | $ | 2,035 | 2.21 | % | $ | 200,968 | $ | 2,302 | 2.31 | % | ||||||||||||
| Overnight Cash | 124,334 | 2,079 | 3.37 | % | 86,379 | 1,930 | 4.51 | % | ||||||||||||||||
| Nontaxable securities | 4,767 | 72 | 3.05 | % | 5,120 | 73 | 2.88 | % | ||||||||||||||||
| Loans, net | 1,184,307 | 34,941 | 5.95 | % | 1,085,313 | 31,535 | 5.86 | % | ||||||||||||||||
| Total earning assets | 1,498,829 | 39,127 | 5.26 | % | 1,377,780 | 35,840 | 5.25 | % | ||||||||||||||||
| Cash on hand | 5,436 | 4,796 | ||||||||||||||||||||||
| Allowance for loan losses | (16,339 | ) | (15,361 | ) | ||||||||||||||||||||
| Premises and equipment | 21,369 | 21,403 | ||||||||||||||||||||||
| Other assets | 85,121 | 90,995 | ||||||||||||||||||||||
| Total assets | $ | 1,594,416 | $ | 1,479,613 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, MMDA and interest bearing demand | $ | 825,713 | $ | 7,646 | 1.87 | % | $ | 725,729 | $ | 6,182 | 1.72 | % | ||||||||||||
| Time deposits | 276,666 | 4,548 | 3.31 | % | 276,315 | 4,767 | 3.48 | % | ||||||||||||||||
| Repurchase agreements & Other | 8,673 | 21 | 0.49 | % | 11,805 | 45 | 0.77 | % | ||||||||||||||||
| Advances from Federal Home Loan Bank | 25,566 | 519 | 4.09 | % | 35,022 | 728 | 4.19 | % | ||||||||||||||||
| Trust preferred securities | 19,749 | 289 | 2.95 | % | 19,701 | 321 | 3.29 | % | ||||||||||||||||
| Subordinated debt | 19,713 | 438 | 4.48 | % | 19,665 | 389 | 3.99 | % | ||||||||||||||||
| Total interest bearing liabilities | 1,176,080 | 13,461 | 2.31 | % | 1,088,237 | 12,432 | 2.30 | % | ||||||||||||||||
| Non interest bearing demand | 262,473 | 1.89 | % | 247,841 | 1.88 | % | ||||||||||||||||||
| Total funding | 1,438,553 | 1,336,078 | ||||||||||||||||||||||
| Other liabilities | 11,047 | 11,686 | ||||||||||||||||||||||
| Total liabilities | 1,449,600 | 1,347,764 | ||||||||||||||||||||||
| Equity | 144,816 | 131,849 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,594,416 | $ | 1,479,613 | ||||||||||||||||||||
| Net interest income | $ | 25,666 | $ | 23,408 | ||||||||||||||||||||
| Net interest income as a percent of average interest-earning assets - GAAP measure | 3.45 | % | 3.43 | % | ||||||||||||||||||||
| Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis | 3.46 | % | 3.44 | % | ||||||||||||||||||||
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| Non-GAAP reconciliation | Three Months Ended | Six Months Ended | ||||||||||||||
| ($ in thousands, except per share & ratios) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | ||||||||||||
| Total Operating Revenue | $ | 17,941 | $ | 17,176 | $ | 35,365 | $ | 32,562 | ||||||||
| Adjustment to (deduct)/add OMSR recapture/impairment * | 54 | (159 | ) | (398 | ) | (170 | ) | |||||||||
| Adjusted Total Operating Revenue | 17,995 | 17,017 | 34,967 | 32,392 | ||||||||||||
| Total Operating Expense | 12,137 | 11,852 | 24,066 | 24,262 | ||||||||||||
| Adjustment for merger expenses | - | - | - | (726 | ) | |||||||||||
| Adjusted Total Operating Expense | 12,137 | 11,852 | 24,066 | 23,536 | ||||||||||||
| Income before Income Taxes | 5,505 | 4,727 | 10,786 | 7,316 | ||||||||||||
| Adjustment for OMSR*/Merger Expenses | 54 | (159 | ) | (398 | ) | 556 | ||||||||||
| Adjusted Income before Income Taxes | 5,559 | 4,568 | 10,388 | 7,872 | ||||||||||||
| Provision for Income Taxes | 1,008 | 875 | 1,993 | 1,306 | ||||||||||||
| Adjustment for OMSR/Merger Expenses ** | 11 | (33 | ) | (84 | ) | 117 | ||||||||||
| Adjusted Provision for Income Taxes | 1,019 | 842 | 1,909 | 1,423 | ||||||||||||
| Net Income | 4,497 | 3,852 | 8,793 | 6,010 | ||||||||||||
| Adjustment for OMSR*/Merger Expenses | 43 | (126 | ) | (314 | ) | 439 | ||||||||||
| Adjusted Net Income | 4,540 | 3,726 | 8,479 | 6,449 | ||||||||||||
| Diluted Earnings per Share | 0.72 | 0.60 | 1.41 | 0.93 | ||||||||||||
| Adjustment for OMSR*/Merger Expenses | 0.01 | (0.02 | ) | (0.05 | ) | 0.07 | ||||||||||
| Adjusted Diluted Earnings per Share | $ | 0.73 | $ | 0.58 | $ | 1.36 | $ | 0.99 | ||||||||
| Return on Average Assets | 1.12 | % | 1.03 | % | 1.11 | % | 0.82 | % | ||||||||
| Adjustment for OMSR*/Merger Expenses | 0.01 | % | -0.03 | % | -0.04 | % | 0.03 | % | ||||||||
| Adjusted Return on Average Assets | 1.13 | % | 1.00 | % | 1.07 | % | 0.85 | % | ||||||||
| * | valuation adjustment to the Company's mortgage servicing rights |
| ** | tax effect is calculated using a 21% statutory federal corporate income tax rate |
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