SB Financial Group Announces Fourth Quarter 2024 Results

DEFIANCE, Ohio, Jan. 23, 2025 (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 fourth quarter ended December 31, 2024.

Fourth Quarter 2024 Highlights compared to the fourth quarter of the prior year:

• Net income of $3.6 million, which is down 6.4 percent with Diluted Earnings Per Share ("EPS") of $0.55. When adjusted for Originated Mortgage Servings Rights ("OMSR") and the Visa B share sale in the prior year, diluted EPS would be up $0.07 or 16.7 percent.
• Interest income of $16.8 million increased by 11.4 percent from $15.1 million reported in the prior year.
• Loan growth of $46.5 million, or 4.7 percent from the prior-year quarter, and marks the third consecutive quarter of sequential expanding loan growth, year over year.
• Tangible book value per shared ended the quarter at $16.00 up $1.02 per share or 6.8 percent from the prior year.

Twelve Months Ended December 31, 2024, highlights Over the Prior Year include:

• Net income decreased slightly to $11.5 million, a 5.2 percent decline from the prior year's $12.1 million, and diluted EPS was $1.72, down 1.9 percent from $1.75. Adjusted EPS was up 4.2 percent compared to the prior year.
• Deposits increased by $82.4 million, or 7.7 percent to $1.15 billion.
• Total interest income of $64.3 million increased by $6.2 million, or 10.7 percent compared to the $58.2 million reported for the previous twelve months, while net interest income improved slightly to $39.9 million, or 1.7 percent.
  
  

Earnings Highlights	Three Months Ended		Twelve Months Ended
($ in thousands, except per share & ratios)	Dec. 2024		Dec. 2023		% Change			Dec. 2024		Dec. 2023		% Change
Operating revenue	$	15,454		$	15,115		2.2	%		$	56,939		$	56,994		-0.1	%
Interest income	16,847		15,126		11.4	%		64,349		58,152		10.7	%
Interest expense	5,950		5,542		7.4	%		24,427		18,879		29.4	%
Net interest income	10,897		9,584		13.7	%		39,922		39,273		1.7	%
Provision (recovery) for credit losses	(76	)	(74	)	-2.7	%		124		315		-60.6	%
Noninterest income	4,557		5,531		-17.6	%		17,017		17,721		-4.0	%
Noninterest expense	11,003		10,369		6.1	%		42,959		41,962		2.4	%
Net income	3,635		3,883		-6.4	%		11,470		12,095		-5.2	%
Earnings per diluted share	0.55		0.57		-3.5	%		1.72		1.75		-1.7	%
Return on average assets	1.04	%	1.17	%	-11.1	%		0.84	%	0.91	%	-7.7	%
Return on average equity	11.13	%	13.23	%	-15.9	%		9.19	%	10.22	%	-10.1	%

"Our fourth-quarter and full-year 2024 results underscore our ability to navigate challenges while delivering growth in key areas," said Mark A. Klein, Chairman, President, and CEO. "Net income for the quarter was $3.6 million, a 54.4 percent increase from the linked quarter. Diluted EPS for the quarter was $0.55, with full-year diluted EPS reaching $1.72.

"In addition to our financial results, we are pleased that we were able to close on the Marblehead acquisition earlier this month. Their presence will add substantial liquidity via their low-cost deposit base and will expand our market presence in Northern Ohio."

Interest income for the quarter grew by 11.4 percent to $16.8 million, driven by strong loan performance. Loans increased by $46.5 million, compared to the prior year, and by $16.8 million from the linked quarter. Deposits also rose by $82.4 million, or 7.7 percent, to $1.15 billion, a testament to the trust our clients place in us. Tangible book value per share climbed by 6.8 percent to $16.00, underscoring our commitment to delivering shareholder value.

We achieved $64.3 million in total interest income for the year, a 10.7 percent increase over 2023, which partially offset a slight decline in net income to $11.5 million. These results highlight our disciplined approach to growth, operational efficiency, and long-term value creation for our stakeholders. As we move into 2025, we remain focused on leveraging our momentum and strengthening our financial position."

RESULTS OF OPERATIONS

Consolidated Revenue

In the fourth quarter of 2024, total operating revenue increased to $15.5 million, a 2.2 percent rise from $15.1 million in the prior year and an 8.0 percent increase from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $10.9 million, a strong 13.7 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.5 million to $15.0 million. However, rising deposit costs contributed to a 7.4 percent increase in total interest expense, partially offsetting the gains in interest income. Despite this, the net interest margin expanded by 24 basis points year-over-year to 3.35 percent, reflecting the continued strength of our interest-earning assets and disciplined funding cost management.

Noninterest income for the quarter declined by 17.6 percent year-over-year to $4.6 million due to the Visa B share sale recorded in the prior year quarter. However, it improved by 10.5 percent compared to the linked quarter, highlighting recovery in key areas. Gains on the sale of mortgage loans and OMSR increased by $448,000 year over year to $1.2 million, while wealth management fees and title insurance revenue rose by $78,000 and $100,000, respectively. Moving forward, we remain focused on maintaining a balanced approach to driving revenue growth and managing costs to deliver consistent shareholder value.

Mortgage Loan Business

"Our mortgage banking operations delivered another quarter of strong results, reflecting our strategic focus on origination growth, portfolio expansion, and servicing efficiency. Mortgage originations surged to $72.5 million, an impressive year-over-year increase of $33.0 million, or 83.3 percent," continued Mr. Klein. "The Indianapolis team contributed 43 percent of our volume this quarter and our newest market, Cincinnati, had volume of $2.3 million in the quarter. Correspondingly, mortgage sales rose to $62.3 million, marking an 86.7 percent increase compared to the same period, last year."

The mortgage servicing portfolio expanded to $1.43 billion, achieving a year-over-year increase of $60.7 million, or 4.4 percent, further strengthening our recurring revenue streams, and highlighting the effectiveness of our servicing retention strategies.

Net mortgage banking revenue for the quarter reached $2.0 million, up $703,000 from the prior year quarter, and for the year was $6.7 million up 18.1 percent compared to 2023. Gains on the sale of mortgages remained a key revenue driver, increasing by $448,000 year-over-year to $1.2 million. Loan servicing fees added $886,000 to revenue, reflecting an increase of $31,000 from the previous year quarter. Notably, the OMSR net valuation adjustment for full year 2024 was a positive $42,000 compared to a negative $51,000 for the full year of 2023.

Mortgage Banking
($ in thousands)	Dec. 2024		Sep. 2024		Jun. 2024		Mar. 2024		Dec. 2023		Prior Year Growth
Mortgage originations	$	72,534		$	70,715		$	75,110		$	42,912		$	39,566		$	32,968
Mortgage sales	62,301		61,271		55,835		36,623		33,362		28,939
Mortgage servicing portfolio	1,427,318		1,406,273		1,389,805		1,371,713		1,366,667		60,651
Mortgage servicing rights	14,868		14,357		14,548		14,191		13,906		962
Revenue
Loan servicing fees	886		874		862		855		855		31
OMSR amortization	(358	)	(370	)	(335	)	(273	)	(282	)	(76	)
Net administrative fees	528		504		527		582		573		(45	)
OMSR valuation adjustment	288		(465	)	38		181		(12	)	300
Net loan servicing fees	816		39		565		763		561		255
Gain on sale of mortgages	1,196		1,311		1,277		781		747		449
Mortgage banking revenue, net	$	2,012		$	1,350		$	1,842		$	1,544		$	1,308		$	704

Noninterest Income and Noninterest Expense

"Noninterest income for the fourth quarter of 2024 totaled $4.6 million, with linked quarter noninterest income increasing by $434,000 or 10.5 percent, primarily due to increased revenue in net mortgage loan servicing fees and higher wealth management fees. Compared to the prior year quarter, wealth management fees grew modestly by $78,000 year over year, and title insurance revenue added $100,000, reflecting our ability to deliver consistent performance across core revenue categories," Mr. Klein noted.

Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Dec. 2024		Sep. 2024		Jun. 2024		Mar. 2024		Dec. 2023		Prior Year Growth
Noninterest Income (NII)	$	4,557		$	4,123		$	4,386		$	3,951		$	5,531		$	(974	)
NII / Total Revenue	29.5	%	28.8	%	31.5	%	30.1	%	36.6	%	-7.1	%
NII / Average Assets	1.3	%	1.2	%	1.3	%	1.2	%	1.7	%	-0.4	%
Total Revenue Growth	2.2	%	4.5	%	-0.6	%	-6.1	%	3.4	%	-1.2	%
Noninterest Expense (NIE)	$	11,003		$	11,003		$	10,671		$	10,282		$	10,369		$	634
Efficiency Ratio	71.1	%	76.8	%	75.9	%	78.2	%	68.4	%	2.7	%
NIE / Average Assets	3.2	%	3.2	%	3.2	%	3.1	%	3.1	%	0.1	%
Net Noninterest Expense/Avg. Assets	-1.9	%	-2.0	%	-1.9	%	-1.9	%	-1.4	%	-0.5	%
Total Expense Growth	6.1	%	5.0	%	3.2	%	-4.6	%	1.0	%	5.1	%

Noninterest expense for the fourth quarter of 2024 was unchanged at $11.0 million compared to the third quarter but increased by $634,000, or 6.1 percent, year-over-year. The year-over-year increase was primarily driven by a $533,000 increase in salaries and employee benefits, reflecting investments in talent to support operational growth and increased business activity.

Noninterest expense increases were partially offset by reductions in discretionary expense categories, including a $61,000 decrease in state, local, and other taxes, as well as a $44,000 reduction in net occupancy expense. Postage and delivery expenses also saw a modest decline of $51,000.

"Our efficiency ratio improved to 71.09 percent in the fourth quarter of 2024 from 76.78 percent in the linked quarter, highlighting our ability to manage costs while investing strategically in growth areas. With a year-end headcount of 252 full-time equivalent employees, we remain focused on balancing growth with operational efficiency" stated Mr. Klein.

Balance Sheet

As of December 31, 2024, SB Financial reported total assets of $1.38 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.05 billion, marking a $46.5 million or 4.7 percent increase year over year. The strategic reallocation of liquidity contributed to this expansion, as evidenced by a decline in cash and available-for-sale securities, demonstrated the Company's focus on maximizing returns while maintaining a solid financial position.

Total deposits increased to $1.15 billion, growing $82.4 million or 7.7 percent year over year, reflecting SB Financial's strength in deposit gathering and customer engagement. Shareholders' equity ended the year at $127.5 million, representing a $3.2 million increase from the prior year. This growth reflects management's commitment to enhancing shareholder value and the Company's disciplined approach to capital management.

During the fourth quarter, SB Financial repurchased 130,465 shares, continuing its active buyback program. This reflects the Company's dedication to returning value to shareholders through dividends and share repurchases while retaining sufficient capital to fund its long-term growth strategies.

"As we conclude 2024, our balance sheet strength and strategic allocation of resources highlight our unwavering commitment to disciplined growth," said Mr. Klein, Chairman, President, and CEO. "Despite a challenging rate environment, we achieved our third consecutive quarter of loan growth, with balances increasing by $46.5 million from the previous year. This performance underscores our ability to deepen client relationships while navigating competitive dynamics. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, positioning us to capitalize on emerging opportunities while maintaining operational excellence. Looking ahead, we remain focused on driving shareholder value and sustaining robust financial performance in the evolving economic landscape."

Loan Balances
($ in thousands, except ratios)	Dec. 2024		Sep. 2024		Jun. 2024		Mar. 2024		Dec. 2023		Annual Growth
Commercial	$	125,014		$	123,821		$	123,287		$	120,016		$	126,716		$	(1,952	)
% of Total	11.9	%	12.0	%	12.3	%	12.1	%	12.7	%	-1.5	%
Commercial RE	479,573		459,449		434,967		429,362		424,041		55,532
% of Total	45.8	%	44.6	%	43.3	%	43.3	%	42.4	%	13.1	%
Agriculture	64,680		64,887		64,329		62,365		65,659		(979	)
% of Total	6.2	%	6.3	%	6.4	%	6.3	%	6.6	%	-1.5	%
Residential RE	308,378		314,010		316,233		314,668		318,123		(9,745	)
% of Total	29.5	%	30.5	%	31.5	%	31.7	%	31.8	%	-3.1	%
Consumer & Other	69,340		67,788		66,574		65,141		65,673		3,667
% of Total	6.6	%	6.6	%	6.6	%	6.6	%	6.6	%	5.6	%
Total Loans	$	1,046,735		$	1,029,955		$	1,005,390		$	991,552		$	1,000,212		$	46,523
Total Growth Percentage											4.7	%
Deposit Balances
($ in thousands, except ratios)	Dec. 2024		Sep. 2024		Jun. 2024		Mar. 2024		Dec. 2023		Annual Growth
Non-Int DDA	$	232,155		$	222,425		$	208,244		$	219,395		$	228,713		$	3,442
% of Total	20.1	%	19.2	%	18.7	%	19.7	%	21.4	%	1.5	%
Interest DDA	201,085		202,097		190,857		169,171		166,413		34,672
% of Total	17.4	%	17.4	%	17.1	%	15.2	%	15.5	%	20.8	%
Savings	237,987		241,761		231,855		244,157		216,965		21,022
% of Total	20.6	%	20.8	%	20.8	%	21.9	%	20.3	%	9.7	%
Money Market	222,161		228,182		225,650		221,362		202,605		19,556
% of Total	19.3	%	19.7	%	20.2	%	19.9	%	18.9	%	9.7	%
Time Deposits	259,217		265,068		258,582		258,257		255,509		3,708
% of Total	22.5	%	22.9	%	23.2	%	23.2	%	23.9	%	1.5	%
Total Deposits	$	1,152,605		$	1,159,533		$	1,115,188		$	1,112,342		$	1,070,205		$	82,400
Total Growth Percentage											7.7	%

Asset Quality

As of December 31, 2024, SB Financial Group maintained strong asset quality metrics. Nonperforming assets totaled $5.5 million, representing 0.40 percent of total assets, an increase of $2.2 million compared to the $3.3 million or 0.25 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we expect to resolve favorably by mid-year 2025.

The allowance for credit losses remained robust at 1.44 percent of total loans, providing 273.7 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of the institution's conservative approach to risk management. This strength underscores SB Financial's commitment to disciplined credit administration amidst evolving economic conditions. The net loan charge-offs to average loans ratio remained modest at 7 basis points and for the full year just 2 basis points, reflecting effective collateral management and a strong credit culture.

"Our asset quality metrics demonstrate resilience and our commitment to disciplined risk management," stated Mark Klein, Chairman, President, and CEO. "While we observed an uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and low charge-off levels underscore the performance of our loan portfolio. We remain focused on preserving the integrity of our credit processes while positioning our balance sheet for long-term growth." This balanced approach reflects SB Financial's efforts to maintain top-tier asset quality ratios, support lending growth, and ensure financial stability for the future.

Nonperforming Assets											Annual
($ in thousands, except ratios)	Dec. 2024		Sep. 2024		Jun. 2024		Mar. 2024		Dec. 2023		Change
Commercial & Agriculture	$	2,927		$	2,899		$	2,781		$	897		$	748		$	2,179
% of Total Com./Ag. loans	1.55	%	1.54	%	1.48	%	0.49	%	0.39	%	291.3	%
Commercial RE	807		813		475		49		168		639
% of Total CRE loans	0.17	%	0.18	%	0.11	%	0.01	%	0.04	%	380.4	%
Residential RE	1,539		1,536		1,247		1,295		1,690		(151	)
% of Total Res. RE loans	0.50	%	0.49	%	0.39	%	0.41	%	0.53	%	-8.9	%
Consumer & Other	243		270		231		193		212		31
% of Total Con./Oth. loans	0.35	%	0.40	%	0.35	%	0.30	%	0.32	%	14.6	%
Total Nonaccruing Loans	5,516		5,518		4,734		2,434		2,818		2,698
% of Total loans	0.53	%	0.54	%	0.47	%	0.25	%	0.28	%	95.7	%
Foreclosed Assets and Other Assets	-		-		510		510		511		(511	)
Total Change (%)											-100.0	%
Total Nonperforming Assets	$	5,516		$	5,518		$	5,244		$	2,944		$	3,329		$	2,187
% of Total assets	0.40	%	0.40	%	0.39	%	0.22	%	0.25	%	65.70	%

Webcast and Conference Call

The Company will hold the fourth quarter 2024 earnings conference call and webcast on January 24, 2025, 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 25 offices: 24 in ten Ohio counties and one in Fort Wayne, Indiana, and 25 ATMs. State Bank has seven 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".

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]

SB FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS - (Unaudited)
				December			September			June			March			December
			($ in thousands)	2024			2024			2024			2024			2023
ASSETS
	Cash and due from banks	$	25,928			$	49,348			$	21,983			$	26,602			$	22,965
	Interest bearing time deposits	1,565			1,706			2,417			2,417			1,535
	Available-for-sale securities	201,587			211,511			207,856			213,239			219,708
	Loans held for sale	6,770			8,927			7,864			4,730			2,525
	Loans, net of unearned income	1,046,735			1,029,955			1,005,390			991,552			1,000,212
	Allowance for credit losses	(15,096	)		(15,278	)		(15,612	)		(15,643	)		(15,786	)
	Premises and equipment, net	20,456			20,715			20,860			20,985			21,378
	Federal Reserve and FHLB Stock, at cost	5,223			5,223			5,204			6,512			7,279
	Foreclosed assets and other assets	-			-			510			510			511
	Interest receivable	4,908			4,842			4,818			3,706			4,657
	Goodwill	23,239			23,239			23,239			23,239			23,239
	Cash value of life insurance	30,685			30,488			30,294			30,103			29,121
	Mortgage servicing rights	14,868			14,357			14,548			14,191			13,906
	Other assets	12,649			8,916			12,815			13,869			11,999
			Total assets	$	1,379,517			$	1,393,949			$	1,342,186			$	1,336,012			$	1,343,249
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand	$	232,155			$	222,425			$	208,244			$	219,395			$	228,713
		Interest bearing demand	201,085			202,097			190,857			169,171			166,413
		Savings	237,987			241,761			231,855			244,157			216,965
		Money market	222,161			228,182			225,650			221,362			202,605
		Time deposits	259,217			265,068			258,582			258,257			255,509
			Total deposits	1,152,605			1,159,533			1,115,188			1,112,342			1,070,205
	Short-term borrowings	10,585			15,240			15,178			12,916			13,387
	Federal Home Loan Bank advances	35,000			35,000			35,000			35,000			83,600
	Trust preferred securities	10,310			10,310			10,310			10,310			10,310
	Subordinated debt net of issuance costs	19,690			19,678			19,666			19,654			19,642
	Interest payable	2,351			3,374			2,944			2,772			2,443
	Other liabilities	21,468			17,973			18,421			19,295			19,320
			Total liabilities	1,252,009			1,261,108			1,216,707			1,212,289			1,218,907
	Shareholders' Equity
		Common stock	61,319			61,319			61,319			61,319			61,319
		Additional paid-in capital	15,194			15,090			15,195			14,978			15,124
		Retained earnings	116,186			113,515			112,104			109,938			108,486
		Accumulated other comprehensive loss	(30,234	)		(24,870	)		(31,801	)		(31,547	)		(29,831	)
		Treasury stock	(34,957	)		(32,213	)		(31,338	)		(30,965	)		(30,756	)
			Total shareholders' equity	127,508			132,841			125,479			123,723			124,342
			Total liabilities and shareholders' equity	$	1,379,517			$	1,393,949			$	1,342,186			$	1,336,012			$	1,343,249

SB FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
($ in thousands, except per share & ratios)	At and for the Three Months Ended				Twelve Months Ended
			December			September		June		March		December			December		December
Interest income	2024			2024		2024		2024		2023			2024		2023
	Loans
	Taxable	$	14,920			$	14,513		$	13,883		$	13,547		$	13,438			$	56,863		$	51,407
	Tax exempt	122			127		124		123		124			496		483
	Securities
	Taxable	1,770			1,871		1,610		1,593		1,526			6,844		6,092
	Tax exempt	35			37		37		37		38			146		170
		Total interest income	16,847			16,548		15,654		15,300		15,126			64,349		58,152
Interest expense
	Deposits	5,169			5,568		5,208		5,090		4,398			21,035		14,708
	Repurchase agreements & other	41			43		36		34		39			154		74
	Federal Home Loan Bank advances	369			369		370		613		720			1,721		2,603
	Trust preferred securities	177			187		187		188		191			739		716
	Subordinated debt	194			195		194		195		194			778		778
		Total interest expense	5,950			6,362		5,995		6,120		5,542			24,427		18,879
Net interest income	10,897			10,186		9,659		9,180		9,584			39,922		39,273
	Provision for credit losses	(76	)		200		-		-		(74	)		124		315
Net interest income after provision
for loan losses	10,973			9,986		9,659		9,180		9,658			39,798		38,958
Noninterest income
	Wealth management fees	916			882		848		865		838			3,511		3,532
	Customer service fees	842			870		875		880		844			3,467		3,403
	Gain on sale of mtg. loans & OMSR	1,195			1,311		1,277		781		747			4,564		3,609
	Mortgage loan servicing fees, net	816			39		565		763		561			2,183		2,101
	Gain on sale of non-mortgage loans	10			20		105		10		177			145		429
	Title insurance revenue	478			485		406		266		378			1,635		1,635
	Net gain on sales of securities	-			-		-		-		1,453			-		1,453
	Gain (loss) on sale of assets	-			200		-		-		16			200		20
	Other	299			316		310		386		517			1,311		1,539
		Total noninterest income	4,557			4,123		4,386		3,951		5,531			17,017		17,721
Noninterest expense
	Salaries and employee benefits	6,185			6,057		6,009		5,352		5,652			23,603		22,777
	Net occupancy expense	702			706		707		769		746			2,884		3,096
	Equipment expense	1,127			1,069		1,060		1,077		1,027			4,333		4,078
	Data processing fees	821			758		727		769		680			3,075		2,659
	Professional fees	895			659		615		758		926			2,927		3,024
	Marketing expense	207			241		176		197		182			821		782
	Telephone and communication expense	136			128		156		105		132			525		501
	Postage and delivery expense	116			145		89		97		167			447		432
	State, local and other taxes	224			208		230		245		285			907		949
	Employee expense	168			228		159		178		146			733		631
	Other expenses	422			804		743		735		426			2,704		3,033
		Total noninterest expense	11,003			11,003		10,671		10,282		10,369			42,959		41,962
Income before income tax expense	4,527			3,106		3,374		2,849		4,820			13,856		14,717
	Income tax expense	892			752		261		481		937			2,386		2,622
Net income	$	3,635			$	2,354		$	3,113		$	2,368		$	3,883			$	11,470		$	12,095
Common share data:
	Basic earnings per common share	$	0.55			$	0.35		$	0.47		$	0.35		$	0.58			$	1.72		$	1.77
	Diluted earnings per common share	$	0.55			$	0.35		$	0.47		$	0.35		$	0.57			$	1.72		$	1.75
Average shares outstanding (in thousands):
	Basic:	6,575			6,660		6,692		6,715		6,748			6,660		6,829
	Diluted:	6,599			6,675		6,700		6,723		6,851			6,680		6,917

SB FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
($ in thousands, except per share & ratios)		At and for the Three Months Ended		Twelve Months Ended
		December			September			June			March			December			December			December
SUMMARY OF OPERATIONS		2024			2024			2024			2024			2023			2024			2023
Net interest income		$	10,897			$	10,186			$	9,659			$	9,180			$	9,584			$	39,922			$	39,273
Tax-equivalent adjustment		42			44			43			43			43			171			174
Tax-equivalent net interest income		10,939			10,230			9,702			9,223			9,627			40,093			39,447
Provision for credit loss		(76	)		200			-			-			(74	)		124			315
Noninterest income		4,557			4,123			4,386			3,951			5,531			17,017			17,721
Total operating revenue		15,454			14,309			14,045			13,131			15,115			56,939			56,994
Noninterest expense		11,003			11,003			10,671			10,282			10,369			42,959			41,962
Pre-tax pre-provision income		4,451			3,306			3,374			2,849			4,746			13,980			15,032
Net income		3,635			2,354			3,113			2,368			3,883			11,470			12,095
PER SHARE INFORMATION:
Basic earnings per share (EPS)		0.55			0.35			0.47			0.35			0.58			1.72			1.77
Diluted earnings per share		0.55			0.35			0.47			0.35			0.57			1.72			1.75
Common dividends		0.145			0.140			0.140			0.135			0.135			0.560			0.520
Book value per common share		19.64			20.05			18.80			18.46			18.50			19.64			18.50
Tangible book value per common share (TBV)		16.00			16.49			15.26			14.93			14.98			16.00			14.98
Market price per common share		20.91			20.56			14.00			13.78			15.35			20.91			15.35
Market price to TBV		130.7	%		124.7	%		91.8	%		92.3	%		102.5	%		130.7	%		102.5	%
Market price to trailing 12 month EPS		12.1			11.8			7.9			7.9			8.8			12.1			8.8
PERFORMANCE RATIOS:
Return on average assets (ROAA)		1.04	%		0.68	%		0.93	%		0.71	%		1.17	%		0.84	%		0.91	%
Pre-tax pre-provision ROAA		1.28	%		0.96	%		1.01	%		0.85	%		1.43	%		1.10	%		1.21	%
Return on average equity (ROE)		11.13	%		7.32	%		10.16	%		7.70	%		13.23	%		9.19	%		10.22	%
Return on average tangible equity		13.58	%		8.97	%		12.59	%		9.53	%		16.57	%		11.34	%		12.78	%
Efficiency ratio		71.09	%		76.78	%		75.86	%		78.17	%		68.44	%		75.33	%		73.47	%
Earning asset yield		5.18	%		5.16	%		5.02	%		4.97	%		4.89	%		5.08	%		4.67	%
Cost of interest bearing liabilities		2.36	%		2.53	%		2.47	%		2.55	%		2.33	%		2.48	%		1.97	%
Net interest margin		3.35	%		3.17	%		3.10	%		2.98	%		3.10	%		3.15	%		3.15	%
Tax equivalent effect		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Net interest margin, tax equivalent		3.36	%		3.19	%		3.11	%		2.99	%		3.11	%		3.16	%		3.16	%
Non interest income/Average assets		1.31	%		1.20	%		1.31	%		1.19	%		1.67	%		1.25	%		1.33	%
Non interest expense/Average assets		3.15	%		3.20	%		3.18	%		3.08	%		3.12	%		3.16	%		3.14	%
Net noninterest expense/Average assets		-1.85	%		-2.00	%		-1.87	%		-1.90	%		-1.46	%		-1.91	%		-1.81	%
ASSET QUALITY RATIOS:
Gross charge-offs		195			29			-			66			5			290			118
Recoveries		13			2			16			9			1			40			26
Net charge-offs		182			27			(16	)		57			4			250			92
Nonperforming loans/Total loans		0.53	%		0.54	%		0.47	%		0.25	%		0.28	%		0.53	%		0.28	%
Nonperforming assets/Loans & OREO		0.53	%		0.54	%		0.52	%		0.30	%		0.33	%		0.53	%		0.33	%
Nonperforming assets/Total assets		0.40	%		0.40	%		0.39	%		0.22	%		0.25	%		0.40	%		0.25	%
Allowance for credit loss/Nonperforming loans		273.68	%		276.83	%		329.78	%		642.69	%		560.18	%		273.68	%		560.18	%
Allowance for credit loss/Total loans		1.44	%		1.48	%		1.55	%		1.58	%		1.58	%		1.44	%		1.58	%
Net loan charge-offs/Average loans (ann.)		0.07	%		0.01	%		(0.01	%)		0.02	%		0.00	%		0.02	%		0.01	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		90.81	%		88.82	%		90.15	%		89.14	%		93.46	%		90.81	%		93.46	%
Equity/ Assets		9.24	%		9.53	%		9.35	%		9.26	%		9.26	%		9.24	%		9.26	%
Tangible equity/Tangible assets		7.66	%		7.97	%		7.72	%		7.63	%		7.63	%		7.66	%		7.63	%
Common equity tier 1 ratio (Bank)		13.64	%		13.19	%		13.98	%		13.84	%		13.42	%		13.64	%		13.42	%
END OF PERIOD BALANCES
Total assets		1,379,517			1,393,949			1,342,186			1,336,012			1,343,249			1,379,517			1,343,249
Total loans		1,046,735			1,029,955			1,005,390			991,552			1,000,212			1,046,735			1,000,212
Deposits		1,152,605			1,159,533			1,115,188			1,112,342			1,070,205			1,152,605			1,070,205
Shareholders equity		127,508			132,841			125,479			123,723			124,342			127,508			124,342
Goodwill and intangibles		23,597			23,613			23,630			23,646			23,662			23,597			23,662
Tangible equity		103,911			109,228			101,849			100,077			100,680			103,911			100,680
Mortgage servicing portfolio		1,427,318			1,406,273			1,389,805			1,371,713			1,366,667			1,427,318			1,366,667
Wealth/Brokerage assets under care		547,697			557,724			525,713			525,517			501,829			547,697			501,829
Total assets under care		3,354,532			3,357,946			3,257,704			3,233,242			3,211,745			3,354,532			3,211,745
Full-time equivalent employees		252			248			249			245			251			252			251
Period end common shares outstanding		6,494			6,624			6,676			6,702			6,720			6,494			6,720
Market capitalization (all)		135,780			136,189			93,458			92,359			103,147			135,780			103,147
AVERAGE BALANCES
Total assets		1,395,473			1,376,849			1,342,847			1,333,236			1,327,415			1,361,274			1,334,644
Total earning assets		1,301,872			1,283,407			1,246,099			1,230,736			1,236,165			1,267,794			1,246,531
Total loans		1,040,580			1,018,262			1,005,018			993,310			992,337			1,014,375			985,217
Deposits		1,163,531			1,145,964			1,120,367			1,091,803			1,084,939			1,130,973			1,094,547
Shareholders equity		130,647			128,608			122,510			123,058			117,397			124,742			118,315
Goodwill and intangibles		23,605			23,621			23,638			23,654			23,675			23,629			23,709
Tangible equity		107,042			104,987			98,872			99,404			93,722			101,113			94,606
Average basic shares outstanding		6,575			6,660			6,692			6,715			6,748			6,660			6,829
Average diluted shares outstanding		6,599			6,675			6,700			6,723			6,851			6,680			6,917

SB FINANCIAL GROUP, INC. Rate Volume Analysis - (Unaudited) For the Three and Twelve Months Ended Dec. 31, 2024 and 2023
	($ in thousands)	Three Months Ended Dec. 31, 2024					Three Months Ended Dec. 31, 2023
		Average			Average				Average			Average
Assets	Balance		Interest	Rate				Balance		Interest	Rate
	Taxable securities/cash	$	254,989		$	1,770	2.78	%			$	237,203		$	1,526	2.57	%
	Nontaxable securities	6,303		35	2.22	%			6,625		38	2.29	%
	Loans, net	1,040,580		15,042	5.78	%			992,337		13,562	5.47	%
	Total earning assets	1,301,872		16,847	5.18	%			1,236,165		15,126	4.89	%
	Cash and due from banks	4,262							4,077
	Allowance for loan losses	(15,070	)						(15,787	)
	Premises and equipment	20,642							22,205
	Other assets	83,767							80,755
	Total assets	$	1,395,473							$	1,327,415
Liabilities
	Savings, MMDA and interest bearing demand	$	669,987		$	2,803	1.67	%			$	601,034		$	2,232	1.49	%
	Time deposits	259,093		2,366	3.65	%			247,382		2,166	3.50	%
	Repurchase agreements & other	13,229		41	1.24	%			13,359		39	1.17	%
	Advances from Federal Home Loan Bank	35,000		369	4.22	%			58,330		720	4.94	%
	Trust preferred securities	10,310		177	6.87	%			10,310		191	7.41	%
	Subordinated debt	19,674		194	3.94	%			19,634		194	3.95	%
	Total interest bearing liabilities	1,007,293		5,950	2.36	%			950,049		5,542	2.33	%
	Non interest bearing demand	234,451		-					236,523		-
	Total funding	1,241,744			1.92	%			1,186,572			1.87	%
	Other liabilities	23,082							23,446
	Total liabilities	1,264,826							1,210,018
	Equity	130,647							117,397
	Total liabilities and equity	$	1,395,473							$	1,327,415		-
	Net interest income			$	10,897							$	9,584
	Net interest income as a percent of average interest-earning assets - GAAP measure		3.35	%						3.10	%
	Net interest income as a percent of average interest-earning assets - non GAAP		3.36	%						3.11	%
	- Computed on a fully tax equivalent (FTE) basis
		Twelve Months Ended Dec. 31, 2024					Twelve Months Ended Dec. 31, 2023
		Average			Average				Average			Average
Assets	Balance		Interest	Rate				Balance		Interest	Rate
	Taxable securities/cash	$	247,026		$	6,844	2.77	%			$	254,133		$	6,092	2.40	%
	Nontaxable securities	6,393		146	2.28	%			7,181		170	2.37	%
	Loans, net	1,014,375		57,359	5.65	%			985,217		51,890	5.27	%
	Total earning assets	1,267,794		64,349	5.08	%			1,246,531		58,152	4.67	%
	Cash and due from banks	4,388							4,035
	Allowance for loan losses	(15,536	)						(15,478	)
	Premises and equipment	20,929							22,990
	Other assets	83,699							76,566
	Total assets	$	1,361,274							$	1,334,644
Liabilities
	Savings, MMDA and interest bearing demand	$	643,710		$	11,073	1.72	%			$	619,906		$	7,599	1.23	%
	Time deposits	259,818		9,962	3.83	%			236,665		7,109	3.00	%
	Repurchase agreements & Other	14,336		154	1.07	%			15,765		74	0.47	%
	Advances from Federal Home Loan Bank	39,092		1,721	4.40	%			55,044		2,603	4.73	%
	Trust preferred securities	10,310		739	7.17	%			10,310		716	6.94	%
	Subordinated debt	19,665		778	3.96	%			19,616		778	3.97	%
	Total interest bearing liabilities	986,931		24,427	2.48	%			957,306		18,879	1.97	%
	Non interest bearing demand	227,445			2.01	%			237,976			1.58	%
	Total funding	1,214,376							1,195,282
	Other liabilities	22,156							21,047
	Total liabilities	1,236,532							1,216,329
	Equity	124,742							118,315
	Total liabilities and equity	$	1,361,274							$	1,334,644
	Net interest income			$	39,922							$	39,273
	Net interest income as a percent of average interest-earning assets - GAAP measure		3.15	%						3.15	%
	Net interest income as a percent of average interest-earning assets - non GAAP		3.16	%						3.16	%
	- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended		Twelve Months Ended
($ in thousands, except per share & ratios)	Dec. 31, 2024			Dec. 31, 2023			Dec. 31, 2024			Dec. 31, 2023
Total Operating Revenue	$	15,454			$	15,115			$	56,939			$	56,994
Adjustment to (deduct)/add OMSR recapture/impairment *	(288	)		12			(42	)		51
Adjusted Total Operating Revenue	15,166			15,127			56,897			57,045
Income before Income Taxes	4,527			4,820			13,856			14,717
Adjustment for OMSR *	(288	)		12			(42	)		51
Adjusted Income before Income Taxes	4,239			4,832			13,814			14,768
Provision for Income Taxes	892			938			2,386			2,623
Adjustment for OMSR **	(60	)		3			(9	)		11
Adjusted Provision for Income Taxes	832			941			2,377			2,634
Net Income	3,635			3,882			11,470			12,094
Adjustment for OMSR *	(228	)		9			(33	)		40
Adjusted Net Income	3,407			3,891			11,437			12,134
Diluted Earnings per Share	0.55			0.57			1.72			1.75
Adjustment for OMSR *	(0.03	)		0.00			(0.00	)		0.01
Adjusted Diluted Earnings per Share	$	0.52			$	0.57			$	1.71			$	1.75
Return on Average Assets	1.04	%		1.17	%		0.84	%		0.91	%
Adjustment for OMSR *	-0.07	%		0.00	%		0.00	%		0.00	%
Adjusted Return on Average Assets	0.98	%		1.17	%		0.84	%		0.91	%
*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.