SB Financial Group Announces First Quarter 2024 Results

DEFIANCE, Ohio, April 18, 2024 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the first quarter and ended March 31, 2024.

First Quarter 2024 Highlights Over the First Quarter Prior Year Include:

• Net income of $2.4 million down 3.3 percent from $2.5 million in the same quarter last year. Diluted Earnings Per Share (“EPS”) remained steady at $0.35.

• Net interest income totaled $9.2 million, a 11.1 percent decrease from the $10.3 million reported in the first quarter of the prior year.

• Loan growth saw an increase to $991.6 million, up by $15.2 million or 1.6 percent from the $976.3 million in the first quarter of the previous year.

• Nonperforming assets improved to 0.22 percent of total assets, down from 0.30 percent in the same quarter of the prior year.

Trailing Twelve Months Ended March 31, 2024 Highlights Compared to the Prior Year Include:

• EPS was $1.75 for the twelve months ended March 2024, an increase of 1.7 percent from the prior twelve months of $1.72.

• Total deposits were $1.112 billion at the end of March 2024, representing a marginal increase of 0.2 percent from $1.110 billion at the end of March 2023.

• Mortgage origination volume was $209.1 million for the trailing twelve months, with a servicing portfolio of $1.37 billion, which increased by 2.1 percent from the prior year.

Earnings Highlights	Three Months Ended
($ in thousands, except per share & ratios)	Mar. 2024				Mar. 2023				% Change
Operating revenue	$	13,131			$	13,990			-6.1	%
Interest income	15,300				13,824				10.7	%
Interest expense	6,120				3,500				74.9	%
Net interest income	9,180				10,324				-11.1	%
Provision for credit losses	-				250				-100.0	%
Noninterest income	3,951				3,666				7.8	%
Noninterest expense	10,282				10,773				-4.6	%
Net income	2,368				2,450				-3.3	%
Earnings per diluted share	0.35				0.35				0.0	%
Return on average assets	0.71		%		0.73		%		-2.7	%
Return on average equity	7.70		%		8.22		%		-6.3	%

"SB Financial Group has demonstrated operational resilience and a keen strategic focus amid the challenging economic conditions during the quarter ended March 31, 2024," stated Mark A. Klein, Chairman, President, and CEO. "Despite a marginal decline in net income from $2.5 million last year to $2.4 million, our operational adaptability ensured solid profitability, with diluted earnings per share consistently at $0.35. This consistency reflects our unwavering commitment to shareholder value even as we navigate through economic headwinds."

"Our loan portfolio expanded to $991.6 million, an increase of $15.2 million, underscoring our disciplined approach to growth and the deep trust our clients place in us. Despite broader market challenges, our deposit base remained stable at $1.11 billion, showcasing our effective management and the enduring strength of our customer relationships. We maintained a conservative risk profile, with notable improvements in asset quality and no significant charge-offs," Mr. Klein noted.

RESULTS OF OPERATIONS

Consolidated Revenue

In the first quarter of 2024, SB Financial Group’s total operating revenue, encompassing net interest income before provision for credit losses and noninterest income, faced significant economic headwinds. Our operating revenue saw a decline of 6.1 percent from the prior year quarter and 13.1 percent from the linked quarter. Although robust, net interest income decreased by 11.1 percent compared to the same period last year, primarily due to increased deposit and funding costs. This also contributed to a 38 basis-point reduction in our net interest margin 1Q 2024 compared to 1Q2023.

Noninterest income, however, showed a positive trajectory, increasing by 7.8 percent from the same quarter last year. This growth was significantly bolstered by a 30.4 percent increase in gains from the sale of mortgages and OMSR. Additionally, mortgage loan servicing fees saw a substantial increase of 25.5 percent. These gains, along with steady customer service fees, built a solid revenue foundation. Despite these strengths, we observed a downturn in revenues from wealth management and title insurance, illustrating the varied performance across our noninterest income streams.

Amid these variances, our strategic focus remains firm. We are dedicated to maintaining a balanced revenue portfolio and dynamically adjusting our strategies to effectively respond to the economic environment. This approach is vital for continuing to create value for our clients and shareholders and demonstrates our commitment to navigating cyclical economic challenges with resilience and foresight.

Mortgage Loan Business

Mortgage loan originations for the first quarter of 2024 totaled $42.9 million, experiencing a contraction from the $49.4 million recorded in the same quarter of the previous year. This downturn reflects the cooling trends within the housing market, indicative of broader economic shifts. Despite this challenging environment, SB Financial Group's strategic agility was evident, with mortgage sales climbing to $36.6 million, or 85 percent of production. This represents an increase of $10.8 million, or approximately 41.9 percent, from the $25.8 million recorded in the prior year quarter, showcasing our ability to capitalize on opportunities within the purchase market.

For this quarter, our mortgage banking net revenue stood at $1.5 million, demonstrating solid performance and an improvement of $0.2 million, or 20.3 percent, from the prior year. This growth, indicative of the robustness of our mortgage servicing operations, is further underscored by the consistent expansion of our servicing portfolio, which grew by 2.0 percent compared to the prior year period, reaching $1.37 billion.

"In a period marked by variable interest rates and a cautious market, SB Financial Group's mortgage banking sector has continued to demonstrate resilience," said Mr. Klein. "The upward trend in mortgage sales, despite a decrease in originations, attests to our team’s market presence and strong brand. Our increased net mortgage banking revenue and the expansion of our servicing portfolio reflect our ongoing commitment to this business line.”

Mortgage Banking
($ in thousands)	Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Mar. 2023				Prior Year Growth
Mortgage originations	$	42,912			$	39,566			$	61,200			$	65,387			$	49,366			$	(6,454	)
Mortgage sales	36,623				33,362				54,085				47,933				25,803				10,820
Mortgage servicing portfolio	1,371,713				1,366,667				1,367,209				1,353,904				1,344,158				27,555
Mortgage servicing rights	14,191				13,906				13,893				13,723				13,548				643
Revenue
Loan servicing fees	763				855				850				844				844				(81		)
OMSR amortization	(273		)		(282		)		(334		)		(334		)		(292		)		19
Net administrative fees	490				573				516				510				552				(62		)
OMSR valuation adjustment	181				(12		)		(78		)		(16		)		56				125
Net loan servicing fees	671				561				438				494				608				63
Gain on sale of mortgages	781				747				1,207				1,056				599				182
Mortgage banking revenue, net	$	1,452			$	1,308			$	1,645			$	1,550			$	1,207			$	245

Noninterest Income and Noninterest Expense

For the first quarter of 2024, noninterest income at SB Financial Group surged to $4.0 million, marking a 7.8% increase from the $3.7 million recorded in the prior year quarter. This notable growth is primarily attributable to our strategic initiatives, including enhanced gain-on-sale yields from mortgage loans and higher recapture of servicing rights, which significantly contributed to our financial performance. Additionally, customer service fees rose by $55,000, or 6.7 percent, further reinforcing our strategic focus in this area.

Noninterest expenses for the first quarter were reported at $10.3 million, a reduction of 4.6 percent from the previous year's $10.8 million. This decrease demonstrates our commitment to reducing costs and enhancing operational efficiency, even in a complex and challenging economic environment.

"Our noninterest income has shown consistent growth compared to the same period last year." commented Mr. Klein. "The gains from both mortgage and mortgage servicing fees have been significant, reflecting our agility and expertise in capitalizing on favorable market conditions. On the expense front, we continued to reduce our noninterest expenses, reflecting a diligent and calculated approach to cost management. Our ongoing efforts are focused on maintaining an efficient operational structure, paramount in delivering sustained value to our stakeholders."

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Mar. 2023				Prior Year Growth
Noninterest Income (NII)	$	3,951			$	5,531			$	4,163			$	4,361			$	3,666			$	285
NII / Total Revenue	30.1		%		36.6		%		30.4		%		30.7		%		26.2		%		3.9		%
NII / Average Assets	1.2		%		1.7		%		1.2		%		1.3		%		1.1		%		0.1		%
Total Revenue Growth	-6.1		%		3.4		%		-5.3		%		-0.5		%		-2.0		%		-6.1		%
Noninterest Expense (NIE)	$	10,282			$	10,369			$	10,481			$	10,339			$	10,773			$	(491	)
Efficiency Ratio	78.2		%		68.4		%		76.4		%		72.7		%		76.9		%		1.3		%
NIE / Average Assets	3.1		%		3.1		%		3.1		%		3.1		%		3.2		%		-0.1		%
Net Noninterest Expense/Avg. Assets	-1.9		%		-1.4		%		-1.9		%		-1.8		%		-2.1		%		0.2		%
Total Expense Growth	-4.6		%		1.0		%		0.9		%		-4.3		%		-0.8		%		-4.6		%

Balance Sheet

As of March 31, 2024, SB Financial Group has continued to exhibit financial stability, with total assets amounting to $1.34 billion, reflecting a marginal year-over-year decrease of 0.39 percent. Our loan portfolio, which notably surpassed the $1 billion mark in the linked quarter, adjusted to $991.6 million for the first quarter of 2024. Despite this slight retraction, the total loans have increased by $15.2 million, or 1.6 percent compared to the prior year, demonstrating our commitment to prudent lending and strategic asset management amid evolving economic conditions. Additionally, our cash and cash equivalents have been increasing, providing enhanced liquidity and further stabilizing our financial base.

Shareholders’ equity has slightly contracted by 0.5 percent to $123.7 million compared to the linked quarter. However, the 3.3% growth, year-over-year, is a positive testament to our ongoing efforts to enhance value for our shareholders.

Mark Klein, remarked, “As we navigate the first quarter of 2024, SB Financial Group remains committed to a disciplined approach to growth, ensuring robust asset quality and maintaining a formidable loan portfolio. Despite a competitive landscape, our loan portfolio has demonstrated resilience, underlining the effectiveness of our relationship-driven lending strategy. This performance is anchored by our dedication to our shareholders, as evidenced by the annual increase in our dividend payout. We are poised to continue capitalizing on strategic opportunities to further strengthen our financial position and deliver sustained shareholder value.”

Loan Balances
($ in thousands, except ratios)	Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Mar. 2023				Annual Growth
Commercial	$	120,016			$	126,716			$	120,325			$	123,226			$	126,066			$	(6,050	)
% of Total	12.1		%		12.7		%		12.2		%		12.5		%		12.9		%		-4.8		%
Commercial RE	429,362				424,041				421,736				417,412				419,024				10,338
% of Total	43.3		%		42.4		%		42.6		%		42.4		%		42.9		%		2.5		%
Agriculture	62,365				65,659				60,928				58,222				57,761				4,604
% of Total	6.3		%		6.6		%		6.2		%		5.9		%		5.9		%		8.0		%
Residential RE	314,668				318,123				320,306				321,365				309,684				4,984
% of Total	31.7		%		31.8		%		32.4		%		32.6		%		31.7		%		1.6		%
Consumer & Other	65,141				65,673				65,726				64,599				63,777				1,364
% of Total	6.6		%		6.6		%		6.6		%		6.6		%		6.5		%		2.1		%
Total Loans	$	991,552			$	1,000,212			$	989,021			$	984,824			$	976,312			$	15,240
Total Growth Percentage																					1.6		%
Deposit Balances
($ in thousands, except ratios)	Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Mar. 2023				Annual Growth
Non-Int DDA	$	219,395			$	228,713			$	224,182			$	218,411			$	237,175			$	(17,780	)
% of Total	19.7		%		21.4		%		20.7		%		20.4		%		21.4		%		-7.5		%
Interest DDA	169,171				166,413				174,729				170,282				188,497				(19,326		)
% of Total	15.2		%		15.5		%		16.1		%		15.9		%		17.0		%		-10.3		%
Savings	244,157				216,965				226,077				225,065				227,974				16,183
% of Total	21.9		%		20.3		%		20.8		%		21.0		%		20.5		%		7.1		%
Money Market	221,362				202,605				216,565				217,681				222,203				(841		)
% of Total	19.9		%		18.9		%		20.0		%		20.3		%		20.0		%		-0.4		%
Time Deposits	258,257				255,509				243,766				239,717				234,295				23,962
% of Total	23.2		%		23.9		%		22.5		%		22.4		%		21.1		%		10.2		%
Total Deposits	$	1,112,342			$	1,070,205			$	1,085,319			$	1,071,156			$	1,110,144			$	2,198
Total Growth Percentage																					0.2		%

Asset Quality

SB Financial Group has consistently prioritized exceptional asset quality, a commitment that has remained steadfast through the first quarter of 2024. As of March 2024, our reports showcase a robust position, with nonperforming loans constituting a mere 0.25% of total loans—a clear testament to the enduring strength and soundness of our lending practices. This represents a significant improvement, with a 10 basis point reduction from the previous year, which reported nonperforming loans at 0.35% of total loans.

Significantly, the allowance for credit losses to nonperforming loans ratio has reached a strong 643 percent. This not only emphasizes our proactive and preemptive measures in managing asset quality but also exceeds the performance benchmark set in the previous year. This ratio reflects our structured approach to risk management, which is aligned with the Current Expected Credit Loss (CECL) methodology, ensuring we remain well-prepared for any contingencies.

Furthermore, the net loan charge-offs to average loans ratio, annualized at 0.02%, underlines our effective handling of loan repayments and the high quality of our credit portfolio. With such solid metrics, we continue to uphold our strong reputation for risk management and credit excellence.

Mark A. Klein, Chairman, President, and CEO of SB Financial, noted, “Our commitment to asset quality is unwavering and clearly evident in our first-quarter performance. The strength of our loan portfolio is reflected in the low percentage of nonperforming loans and a substantial allowance for potential credit losses, demonstrating our vigilant approach to asset management and our resilience in the face of economic variables."

Nonperforming Assets
($ in thousands, except ratios)	Mar. 2024				Dec. 2023				Sep. 2023				Jun. 2023				Mar. 2023				Annual Change
Commercial & Agriculture	$	897			$	748			$	717			$	170			$	185			$	712
% of Total Com./Ag. loans	0.49		%		0.39		%		0.40		%		0.09		%		0.10		%		384.9		%
Commercial RE	49				168				222				192				199				(150		)
% of Total CRE loans	0.01		%		0.04		%		0.05		%		0.05		%		0.05		%		-75.4		%
Residential RE	1,295				1,690				2,182				2,266				2,742				(1,447		)
% of Total Res. RE loans	0.41		%		0.53		%		0.68		%		0.71		%		0.89		%		-52.8		%
Consumer & Other	193				212				208				282				270				(77		)
% of Total Con./Oth. loans	0.30		%		0.32		%		0.32		%		0.44		%		0.42		%		-28.5		%
Total Nonaccruing Loans	2,434				2,818				3,329				2,910				3,396				(962		)
% of Total loans	0.25		%		0.28		%		0.34		%		0.30		%		0.35		%		-28.3		%
Foreclosed Assets and Other Assets	510				511				629				625				650				(140		)
Total Change (%)																					-21.5		%
Total Nonperforming Assets	$	2,944			$	3,329			$	3,958			$	3,535			$	4,046			$	(1,102	)
% of Total assets	0.22		%		0.25		%		0.30		%		0.26		%		0.30		%		-27.24		%

Webcast and Conference Call

The Company will hold the first quarter 2024 earnings conference call and webcast on April 19, 2024, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

About SB Financial Group

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

In May 2023, SB Financial was valued #163 on the American Banker Magazine’s list of top 200 publicly traded Community Bank and Thrifts based on three-year average return on equity.

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 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)
	March				December				September				June				March
($ in thousands)	2024				2023				2023				2023				2023
ASSETS
Cash and due from banks	$	26,602			$	22,965			$	19,049			$	20,993			$	21,625
Interest bearing time deposits	2,417				1,535				1,180				1,180				1,380
Available-for-sale securities	213,239				219,708				212,768				227,996				237,607
Loans held for sale	4,730				2,525				3,206				5,684				5,592
Loans, net of unearned income	991,552				1,000,212				989,021				984,824				976,312
Allowance for credit losses	(15,643		)		(15,786		)		(15,790		)		(15,795		)		(15,442		)
Premises and equipment, net	20,985				21,378				21,934				22,230				22,621
Federal Reserve and FHLB Stock, at cost	6,512				7,279				6,261				7,634				6,054
Foreclosed assets and other assets	510				511				629				625				650
Interest receivable	4,584				4,657				4,457				4,079				3,926
Goodwill	23,239				23,239				23,239				23,239				23,239
Cash value of life insurance	30,103				29,121				29,291				29,183				29,024
Mortgage servicing rights	14,191				13,906				13,893				13,723				13,548
Other assets	12,991				11,999				17,336				15,840				15,157
Total assets	$	1,336,012			$	1,343,249			$	1,326,474			$	1,341,435			$	1,341,293
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non interest bearing demand	$	219,395			$	228,713			$	224,182			$	218,411			$	237,175
Interest bearing demand	169,171				166,413				174,729				170,282				188,497
Savings	244,157				216,965				226,077				225,065				227,974
Money market	221,362				202,605				216,565				217,681				222,203
Time deposits	258,257				255,509				243,766				239,717				234,295
Total deposits	1,112,342				1,070,205				1,085,319				1,071,156				1,110,144
Short-term borrowings	12,916				13,387				16,519				21,118				15,998
Federal Home Loan Bank advances	35,000				83,600				59,500				81,300				44,500
Trust preferred securities	10,310				10,310				10,310				10,310				10,310
Subordinated debt net of issuance costs	19,654				19,642				19,630				19,618				19,606
Interest payable	2,772				2,443				2,216				1,866				1,441
Other liabilities	19,295				19,320				20,632				18,401				19,535
Total liabilities	1,212,289				1,218,907				1,214,126				1,223,769				1,221,534
Shareholders' Equity
Common stock	61,319				61,319				61,319				61,319				61,319
Additional paid-in capital	14,978				15,124				15,037				15,154				14,953
Retained earnings	109,938				108,486				105,521				103,725				101,548
Accumulated other comprehensive loss	(31,547		)		(29,831		)		(39,517		)		(32,894		)		(29,671		)
Treasury stock	(30,965		)		(30,756		)		(30,012		)		(29,638		)		(28,390		)
Total shareholders' equity	123,723				124,342				112,348				117,666				119,759
Total liabilities and shareholders' equity	$	1,336,012			$	1,343,249			$	1,326,474			$	1,341,435			$	1,341,293

SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except per share & ratios)		At and for the Three Months Ended
		March				December				September				June				March
Interest income		2024				2023				2023				2023				2023
	Loans
	Taxable	$	13,547			$	13,438			$	13,128			$	12,715			$	12,126
	Tax exempt	123				124				122				121				116
	Securities
	Taxable	1,593				1,526				1,507				1,524				1,535
	Tax exempt	37				38				39				46				47
	Total interest income	15,300				15,126				14,796				14,406				13,824
Interest expense
	Deposits	5,090				4,398				4,194				3,538				2,578
	Repurchase agreements & other	34				39				16				9				10
	Federal Home Loan Bank advances	613				720				666				664				553
	Trust preferred securities	188				191				189				172				164
	Subordinated debt	195				194				195				194				195
	Total interest expense	6,120				5,542				5,260				4,577				3,500
Net interest income		9,180				9,584				9,536				9,829				10,324
	Provision for credit losses	-				(74		)		(6		)		145				250
Net interest income after provision for loan losses		9,180				9,658				9,542				9,684				10,074
Noninterest income
	Wealth management fees	865				838				837				940				917
	Customer service fees	880				844				863				871				825
	Gain on sale of mtg. loans & OMSR	781				747				1,207				1,056				599
	Mortgage loan servicing fees, net	671				561				438				494				608
	Gain on sale of non-mortgage loans	10				177				10				218				24
	Title insurance revenue	266				378				429				455				373
	Net gain on sales of securities	-				1,453				-				-				-
	Gain (loss) on sale of assets	-				16				-				15				(11		)
	Other	478				517				379				312				331
	Total noninterest income	3,951				5,531				4,163				4,361				3,666
Noninterest expense
	Salaries and employee benefits	5,352				5,652				5,491				5,721				5,913
	Net occupancy expense	769				746				764				802				784
	Equipment expense	1,077				1,027				1,068				1,002				981
	Data processing fees	769				680				648				685				646
	Professional fees	758				926				623				612				863
	Marketing expense	197				182				189				213				198
	Telephone and communication expense	105				132				124				124				121
	Postage and delivery expense	97				167				100				78				87
	State, local and other taxes	245				285				218				218				228
	Employee expense	178				146				141				156				188
	Other expenses	735				426				1,115				728				764
	Total noninterest expense	10,282				10,369				10,481				10,339				10,773
Income before income tax expense		2,849				4,820				3,224				3,706				2,967
	Income tax expense	481				937				537				631				517
Net income		$	2,368			$	3,883			$	2,687			$	3,075			$	2,450
Common share data:
	Basic earnings per common share	$	0.35			$	0.58			$	0.40			$	0.45			$	0.35
	Diluted earnings per common share	$	0.35			$	0.57			$	0.39			$	0.44			$	0.35
Average shares outstanding (in thousands):
	Basic:	6,715				6,748				6,791				6,847				6,933
	Diluted:	6,723				6,851				6,878				6,910				7,008

SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share & ratios)		At and for the Three Months Ended
		March				December				September				June				March
SUMMARY OF OPERATIONS		2024				2023				2023				2023				2023
Net interest income		$	9,180			$	9,584			$	9,536			$	9,829			$	10,324
Tax-equivalent adjustment		43				43				43				44				43
Tax-equivalent net interest income		9,223				9,627				9,579				9,873				10,367
Provision for credit loss		-				(74		)		(6		)		145				250
Noninterest income		3,951				5,531				4,163				4,361				3,666
Total operating revenue		13,131				15,115				13,699				14,190				13,990
Noninterest expense		10,282				10,369				10,481				10,339				10,773
Pre-tax pre-provision income		2,849				4,746				3,218				3,851				3,217
Pretax income		2,849				4,820				3,224				3,706				2,967
Net income		2,368				3,883				2,687				3,075				2,450
PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.35				0.58				0.40				0.45				0.35
Diluted earnings per share		0.35				0.57				0.39				0.44				0.35
Common dividends		0.135				0.135				0.130				0.130				0.125
Book value per common share		18.46				18.50				16.59				17.30				17.37
Tangible book value per common share (TBV)		14.93				14.98				13.09				13.81				13.93
Market price per common share		13.78				15.35				13.50				12.62				14.13
Market price to TBV		92.3		%		102.5		%		103.1		%		91.4		%		101.4		%
Market price to trailing 12 month EPS		7.9				8.8				8.0				7.1				8.2
PERFORMANCE RATIOS:
Return on average assets (ROAA)		0.71		%		1.17		%		0.80		%		0.91		%		0.73		%
Pre-tax pre-provision ROAA		0.85		%		1.43		%		0.96		%		1.14		%		0.96		%
Return on average equity		7.70		%		13.23		%		9.25		%		10.32		%		8.22		%
Return on average tangible equity		9.53		%		16.57		%		11.62		%		12.89		%		10.26		%
Efficiency ratio		78.17		%		68.44		%		76.34		%		72.71		%		76.85		%
Earning asset yield		4.97		%		4.89		%		4.78		%		4.61		%		4.49		%
Cost of interest bearing liabilities		2.55		%		2.33		%		2.18		%		1.90		%		1.46		%
Net interest margin		2.98		%		3.10		%		3.08		%		3.15		%		3.35		%
Tax equivalent effect		0.01		%		0.01		%		0.01		%		0.01		%		0.02		%
Net interest margin, tax equivalent		2.99		%		3.11		%		3.09		%		3.16		%		3.37		%
Non interest income/Average assets		1.19		%		1.67		%		1.24		%		1.30		%		1.10		%
Non interest expense/Average assets		3.08		%		3.12		%		3.13		%		3.07		%		3.23		%
Net noninterest expense/Average assets		-1.90		%		-1.46		%		-1.89		%		-1.78		%		-2.13		%
ASSET QUALITY RATIOS:
Gross charge-offs		66				5				12				32				69
Recoveries		9				1				7				10				8
Net charge-offs		57				4				5				22				61
Nonperforming loans/Total loans		0.25		%		0.28		%		0.34		%		0.30		%		0.35		%
Nonperforming assets/Loans & OREO		0.30		%		0.33		%		0.40		%		0.36		%		0.41		%
Nonperforming assets/Total assets		0.22		%		0.25		%		0.30		%		0.26		%		0.30		%
Allowance for credit loss/Nonperforming loans		642.69		%		560.18		%		474.32		%		542.78		%		454.71		%
Allowance for credit loss/Total loans		1.58		%		1.58		%		1.60		%		1.60		%		1.58		%
Net loan charge-offs/Average loans (ann.)		0.02		%		0.00		%		0.00		%		0.01		%		0.03		%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		89.14		%		93.46		%		91.13		%		91.94		%		87.94		%
Equity/ Assets		9.26		%		9.26		%		8.47		%		8.77		%		8.93		%
Tangible equity/Tangible assets		7.63		%		7.63		%		6.81		%		7.13		%		7.29		%
Common equity tier 1 ratio (Bank)		13.63		%		13.42		%		13.56		%		13.18		%		13.44		%
END OF PERIOD BALANCES
Total assets		1,336,012				1,343,249				1,326,474				1,341,435				1,341,293
Total loans		991,552				1,000,212				989,021				984,824				976,312
Deposits		1,112,342				1,070,205				1,085,319				1,071,156				1,110,144
Shareholders equity		123,723				124,342				112,348				117,666				119,759
Goodwill and intangibles		23,646				23,662				23,687				23,710				23,732
Tangible equity		100,077				100,680				88,661				93,956				96,027
Mortgage servicing portfolio		1,371,713				1,366,667				1,367,209				1,353,904				1,344,158
Wealth/Brokerage assets under care		525,517				501,829				478,236				499,255				518,009
Total assets under care		3,233,242				3,211,745				3,171,919				3,194,594				3,203,460
Full-time equivalent employees		245				251				252				253				255
Period end common shares outstanding		6,702				6,720				6,773				6,803				6,894
Market capitalization (all)		92,359				103,147				91,437				85,857				97,419
AVERAGE BALANCES
Total assets		1,333,236				1,327,415				1,339,870				1,346,010				1,335,056
Total earning assets		1,230,736				1,236,165				1,239,145				1,248,813				1,232,018
Total loans		993,310				992,337				989,089				988,348				970,813
Deposits		1,091,803				1,084,939				1,095,414				1,100,344				1,098,935
Shareholders equity		123,058				117,397				116,165				119,177				119,237
Goodwill and intangibles		23,654				23,675				23,698				23,721				23,743
Tangible equity		99,404				93,722				92,467				95,456				95,494
Average basic shares outstanding		6,715				6,748				6,791				6,847				6,933
Average diluted shares outstanding		6,723				6,851				6,878				6,910				7,008

SB FINANCIAL GROUP, INC.
Rate Volume Analysis - (Unaudited)
For the Three Months Ended Mar. 31, 2024 and 2023
($ in thousands)	Three Months Ended Mar. 31, 2024								Three Months Ended Mar. 31, 2023
	Average					Average			Average					Average
Assets	Balance			Interest		Rate			Balance			Interest		Rate
Taxable securities/cash	$	230,981		$	1,593	2.76	%		$	253,449		$	1,535	2.42	%
Nontaxable securities	6,445			37		2.30	%		7,756			47		2.42	%
Loans, net	993,310			13,670		5.50	%		970,813			12,242		5.04	%
Total earning assets	1,230,736			15,300		4.97	%		1,232,018			13,824		4.49	%
Cash and due from banks	4,512								11,067
Allowance for loan losses	(15,830		)						(14,763		)
Premises and equipment	21,281								22,858
Other assets	92,537								83,876
Total assets	$	1,333,236							$	1,335,056
Liabilities
Savings, MMDA and interest bearing demand	$	605,243		$	2,525	1.67	%		$	643,081		$	1,285	0.80	%
Time deposits	258,592			2,565		3.97	%		214,978			1,293		2.41	%
Repurchase agreements & other	15,993			34		0.85	%		18,618			10		0.21	%
Advances from Federal Home Loan Bank	51,030			613		4.81	%		49,177			553		4.50	%
Trust preferred securities	10,310			188		7.29	%		10,310			164		6.36	%
Subordinated debt	19,646			195		3.97	%		19,598			195		3.98	%
Total interest bearing liabilities	960,814			6,120		2.55	%		955,762			3,500		1.46	%
Non interest bearing demand	227,968			-					240,876			-
Total funding	1,188,782					2.06	%		1,196,638					1.17	%
Other liabilities	21,396								21,347
Total liabilities	1,210,178								1,217,985
Equity	123,058								117,071
Total liabilities and equity	$	1,333,236							$	1,335,056
Net interest income				$	9,180							$	10,324
Net interest income as a percent of average interest-earning assets - GAAP measure						2.98	%							3.35	%
Net interest income as a percent of average interest-earning assets - non GAAP						2.99	%							3.37	%
- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended
($ in thousands, except per share & ratios)	Mar. 31, 2024				Mar. 31, 2023
Total Operating Revenue	$	13,131			$	13,990
Adjustment to (deduct)/add OMSR recapture/impairment *	(181		)		(56		)
Adjusted Total Operating Revenue	12,950				13,934
Income before Income Taxes	2,849				2,967
Adjustment for OMSR *	(181		)		(56		)
Adjusted Income before Income Taxes	2,668				2,911
Provision for Income Taxes	481				517
Adjustment for OMSR **	(38		)		(12		)
Adjusted Provision for Income Taxes	443				505
Net Income	2,368				2,450
Adjustment for OMSR *	(143		)		(44		)
Adjusted Net Income	2,225				2,406
Diluted Earnings per Share	0.35				0.35
Adjustment for OMSR *	(0.02		)		(0.01		)
Adjusted Diluted Earnings per Share	$	0.33			$	0.34
Return on Average Assets	0.71		%		0.73		%
Adjustment for OMSR *	-0.04		%		-0.01		%
Adjusted Return on Average Assets	0.67		%		0.72		%
*valuation adjustment to the Company's mortgage servicing rights
**tax effect is calculated using a 21% statutory federal corporate income tax rate