SB Financial Group Announces Fourth Quarter 2025 Results

Press Release Company Release - 1/29/2026 4:15 PM ET 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 $11.5 million in the prior year. Earnings HighlightsThree Months Ended Twelve Months Ended($ in thousands, except per share & ratios)Dec. 2025Dec. 2024% Change Dec. 2025Dec. 2024% ChangeOperating 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024 Prior Year GrowthMortgage 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024 Prior Year GrowthNoninterest 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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024Annual GrowthCommercial$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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024Annual GrowthNon-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. 2025Sep. 2025Jun. 2025Mar. 2025Dec. 2024Commercial & 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/MTotal 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 [email protected] Anthony V. Cosentino Executive Vice President and Chief Financial Officer [email protected] 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 DecemberInterest income 2025 2025 2025 2025 2024 2025 2024Loans Taxable$17,234 $16,449 $16,059 $15,244 $14,920 $64,986 $56,863Tax exempt 107 117 116 115 122 455 496Securities Taxable 1,096 1,097 1,133 1,169 1,178 4,495 4,870Tax exempt 36 35 35 38 35 144 146Other interest income 799 1,111 1,124 806 592 3,840 1,974Total 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 21,035Repurchase agreements & other 22 28 21 24 41 95 154Federal Home Loan Bank advances 370 369 366 362 369 1,467 1,721Trust preferred securities 154 162 161 160 177 637 739Subordinated debt 194 195 194 195 194 778 778Total 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 3,511Customer service fees 892 887 886 879 842 3,544 3,467Gain on sale of mtg. loans & OMSR 1,272 1,328 1,566 849 1,196 5,015 4,565Mortgage loan servicing fees, net 199 158 594 611 816 1,562 2,183Gain on sale of non-mortgage loans 38 8 82 15 10 143 145Title insurance revenue 525 544 582 397 478 2,048 1,635Net gain on sales of securities - - - - - - -Gain (loss) on sale of assets - - - - - - 200Other (118) 407 479 492 299 1,260 1,311Total 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 23,603Net occupancy expense 822 801 793 893 702 3,309 2,884Equipment expense 1,154 1,188 1,121 1,072 1,127 4,535 4,333Data processing fees 790 723 888 1,439 821 3,840 3,075Professional fees 805 863 892 1,034 895 3,594 2,927Marketing expense 122 174 190 165 207 651 821Telephone and communication expense 124 123 125 139 136 511 525Postage and delivery expense 140 157 107 137 116 541 447State, local and other taxes 331 268 268 224 224 1,091 907Employee expense 158 255 176 174 168 763 733Other expenses 746 748 697 896 422 3,087 2,704Total noninterest expense 11,239 11,498 11,852 12,410 11,003 46,999 42,959Income before income tax expense 4,983 4,956 4,727 2,589 4,527 17,255 13,856Income 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 $1.72Diluted earnings per common share$0.63 $0.64 $0.60 $0.33 $0.55 $2.19 $1.72 Average shares outstanding (in thousands): Basic: 6,252 6,297 6,448 6,481 6,575 6,369 6,660Diluted: 6,266 6,311 6,459 6,502 6,599 6,388 6,680SB FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) ($ in thousands, except per share & ratios) At and for the Three Months Ended Twelve Months Ended December September June March December December DecemberSUMMARY 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 AverageAssetsBalanceInterestRate BalanceInterestRate Taxable securities$192,092 $1,0962.26% $205,848 $1,3212.55%Overnight Cash 79,464 7993.99% 49,141 4493.63%Nontaxable securities 6,084 362.35% 6,303 352.21%Loans, net 1,158,567 17,3415.94% 1,040,580 15,0425.75%Total earning assets 1,436,207 19,2725.32% 1,301,872 16,8475.15%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 $3,4681.80% $669,987 $2,8031.66%Time deposits 272,398 2,3523.43% 259,093 2,3663.63%Repurchase agreements & other 10,709 220.82% 13,229 411.23%Advances from Federal Home Loan Bank 35,000 3704.19% 35,000 3694.19%Trust preferred securities 10,310 1545.93% 10,310 1776.83%Subordinated debt 19,731 1943.90% 19,674 1943.92%Total interest bearing liabilities 1,112,954 6,5602.34% 1,007,293 5,9502.35%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 measure3.51% 3.33% Net interest income as a percent of average interest-earning assets - non GAAP3.52% 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 AverageAssetsBalanceInterestRate BalanceInterestRate Taxable securities$196,831 $4,4952.28% $247,026 $5,4902.22%Overnight Cash 87,283 3,8404.40% 43,171 1,3543.14%Nontaxable securities 6,243 1442.31% 6,393 1462.28%Loans, net 1,108,531 65,4415.90% 1,014,375 57,3595.65%Total earning assets 1,398,888 73,9205.28% 1,310,965 64,3494.91%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 $13,0921.76% $643,710 $11,0731.72%Time deposits 273,228 9,3983.44% 259,818 9,9623.83%Repurchase agreements & Other 12,085 950.79% 14,336 1541.07%Advances from Federal Home Loan Bank 35,011 1,4674.19% 39,092 1,7214.40%Trust preferred securities 10,310 6376.18% 10,310 7397.17%Subordinated debt 19,713 7783.95% 19,665 7783.96%Total interest bearing liabilities 1,092,500 25,4672.33% 986,931 24,4272.48%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 $39,922 Net interest income as a percent of average interest-earning assets - GAAP measure3.46% 3.05% Net interest income as a percent of average interest-earning assets - non GAAP3.47% 3.06%- Computed on a fully tax equivalent (FTE) basis Non-GAAP reconciliationThree Months Ended Twelve Months Ended ($ 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  Source: SB Financial Group, Inc. 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