Earnings release
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Source: SB Financial Group, Inc. October 22, 2026 09:00 ET SB Financial Group AnnouncesThird Quarter 2026 Results DEFIANCE, Ohio, Oct. 22, 2026 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the“Company”), a diversi ed nancial services company providing full-service community banking, mortgage banking,wealth management, private client and title insurance services today reported earnings for the quarter endedSeptember 30, 2026. Third Quarter 2026 Highlights compared to the third quarter of the prior year and linked quarter include: GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.63 per DEPS, a slight declinefrom the $4.0 million, or $0.64 per DEPS in the prior-year quarter. Total loans reached $1.22 billion, re ecting an increase of $108.2 million, or 9.7 percent, from the prior-year quarterand an improvement of $29.2 million, or 2.5 percent, from the linked quarter. The performance this quarter marksSBFG's tenth consecutive quarter of expansion in our loan portfolio. Total deposits climbed to $1.38 billion, increasing by $120.3 million, or 9.5 percent, from the prior year quarter, anddown $8.3 million, or 0.6 percent, from the linked quarter. Tangible book value (“TBV”) per common share nished the quarter at $18.65, climbing $1.44 per share, or 8.3percent, from $17.21 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $23.03 atquarter end. Nine months ended September 30, 2026 Highlights compared to the same period of the prior-year: GAAP net income increased to $12.7 million, a 26.7 percent expansion compared to $10.1 million reported for theprevious nine months, and diluted EPS was $2.04, an improvement of 31.1 percent from $1.56, same period lastyear. Net interest income rose to $39.1 million, representing a 9.4 percent improvement from the $35.7 million reportedin the prior-year period. Noninterest income increased by 7.1 percent to $14.4 million compared to $13.4 million reported in the previousnine months. Noninterest expense expanded, increasing by 4.1 percent to $37.2 million from $35.8 million in the prior-yearperiod. YTD operating leverage was strong at 1.7 times. Earnings Highlights Three Months Ended Nine Months Ended ($ in thousands, except per share &ratios) Sep. 2026Sep. 2025 %Change Sep. 2026Sep. 2025 %Change Operating revenue $ 18,075$ 16,578 9.0%$53,440$ 49,140 8.8% Interest income 20,526 18,809 9.1% 59,653 54,648 9.2% Interest expense 7,102 6,475 9.7% 20,563 18,907 8.8% Net interest income 13,424 12,334 8.8% 39,090 35,741 9.4% Provision for credit losses 127 124 -2.4% 640 1,108 -42.2% Noninterest income 4,651 4,244 9.6% 14,350 13,399 7.1% Noninterest expense 13,157 11,498 14.4% 37,223 35,760 4.1% Net income 3,946 4,046 -2.5% 12,739 10,056 26.7% Adjusted Earnings per diluted share 0.63 0.68 -7.4% 1.99 1.67 19.2% Earnings per diluted share 0.63 0.64 -1.6% 2.04 1.56 30.8% Adjusted Return on Avg. Assets 0.95% 1.13% -15.9% 1.03% 0.96% 7.3% Return on average assets 0.96% 1.07% -10.3% 1.06% 0.90% 17.8% Adjusted Return on Avg. Equity 10.44% 12.79% -18.4% 11.34% 10.84% 4.6%
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Return on average equity 10.53% 12.08% -12.8% 11.62% 10.15% 14.5% "Net income for the third quarter of 2026 was stable at $3.9 million, a 2.5 percent decrease from the prior-year quarter,with GAAP DEPS of $0.63, a decrease of 1.6 percent," said Mark A. Klein, Chairman, President, and Chief ExecutiveOf cer. While our bottom-line results were slightly lower compared to the prior year, this marks our 63rd consecutivequarter of pro tability. Our performance this quarter re ects the continued resilience of our core community bankingoperations—highlighted by our tenth consecutive quarter of loan growth—and dynamic contributions from our fee-based business lines, which helped mitigate the impact of elevated operating expenses and broader economicpressures. RESULTS OF OPERATIONS Total operating revenue for the third quarter of 2026 was $18.1 million, an increase of 9.0 percent year-over-year andslightly improved from the linked quarter. This revenue growth was primarily driven by steady gains in our loanportfolio and resilience in noninterest income categories. Net interest income was $13.4 million for the third quarter of2026, an increase from $12.3 million in the third quarter of 2025 and $13.0 million in the second quarter of 2026. Totalinterest income rose to $20.5 million, propelled by robust loan volume and repricing dynamics. Total interest expensewas $7.1 million, a 9.7 percent increase from the prior-year period as deposit costs adjusted to the current rateenvironment. As a result, net interest margin was 3.50 percent, expanding 2 basis points from the third quarter of 2025. Total loans increased $108.2 million, or 9.7 percent, from the prior-year quarter and $29.2 million, or 2.5 percent, from thelinked quarter. Total deposits at quarter end expanded $120.3 million, or 9.5 percent, year-over-year to $1.38 billion,anchored by durable core customer relationships and ongoing deposit gathering initiatives across our footprint, despitea minor linked-quarter decrease of $8.3 million. Overall quarterly performance demonstrated disciplined balance sheetmanagement, robust credit quality, and the strategic resilience of our diversi ed revenue streams. Mortgage Loan Business Net mortgage banking revenue for the quarter reached $1.8 million, an increase of $293,000 from the prior-yearquarter. Loan servicing fees added $946,000 for the quarter, an increase from the prior-year period. The OMSRvaluation adjustment for the third quarter of 2026 was a recapture of $43,000, compared to a negative adjustment of$301,000 in the third quarter of 2025. Mortgage Banking ($ in thousands) Sep. 2026Jun. 2026Mar. 2026Dec. 2025 Sep. 2025Prior YearGrowth Mortgage originations $ 77,678$ 79,346$ 65,768$ 72,398$ 67,609 $ 10,069 Mortgage sales 66,529 70,253 53,420 70,361 66,408 121 Mortgage servicing portfolio 1,517,593 1,504,657 1,482,052 1,479,982 1,470,360 47,233 Mortgage servicing rights 16,204 15,953 15,728 15,254 15,347 857 Revenue Loan servicing fees 946 934 928 928 914 32 OMSR amortization (472) (497) (529) (572) (455) (17) Net administrative fees 474 437 399 356 459 15 OMSR valuation adjustment 43 (54) 452 (157) (301) 344 Net loan servicing fees 517 383 851 199 158 359 Gain on sale of mortgages 1,262 1,541 978 1,272 1,328 (66) Mortgage banking revenue, net $ 1,779$ 1,924$ 1,829$ 1,471$ 1,486 $ 293 Noninterest Income and Noninterest Expense Total noninterest income for the third quarter of 2026 was $4.7 million, up 9.6 percent from the $4.2 million reported inthe third quarter of 2025. The year-over-year expansion was driven primarily by higher net mortgage banking revenue,supported by increased loan servicing fees of $946,000 and a positive OMSR valuation recapture, alongside steady,consistent contributions from our Wealth Management and Title Insurance divisions. "The resilience of our fee basedrevenue stream validates our diversi ed business model, as cross-functional referral strategies continue to anchor ourabove median level of growth," Klein noted. Noninterest Income/NoninterestExpense ($ in thousands, except ratios) Sep. 2026Jun. 2026Mar. 2026Dec. 2025Sep. 2025Prior YearGrowth Noninterest Income (NII) $ 4,651 $ 4,987$ 4,712$ 3,708$ 4,244 $ 407 NII / Total Revenue 25.7% 27.8% 27.0% 22.6% 25.6% 0.1%
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NII / Average Assets 1.1% 1.2% 1.2% 1.0% 1.1% 0.0% Total Revenue Growth 9.0% 4.5% 13.3% 6.3% 15.9% -6.9% Noninterest Expense (NIE) $ 13,157$ 12,137$ 11,929$ 11,239$ 11,498 $ 1,659 Ef ciency Ratio 72.5% 67.3% 68.1% 68.1% 69.0% 3.5% NIE / Average Assets 3.2% 3.0% 3.1% 2.9% 3.0% 0.2% Net Noninterest Expense/Avg. Assets -2.1% -1.8% -1.9% -1.9% -1.9% -0.2% Total Expense Growth 14.4% 2.4% -3.9% 2.1% 4.5% 9.9% Noninterest expense for the third quarter of 2026 increased 14.4 percent to $13.2 million from $11.5 million in the prior-year quarter, driven by an increase of $1.14 million in salaries and employee bene ts, which totaled $7.3 million,re ecting higher incentive costs and medical expenses. Data processing fees for the quarter stood at $1.12 millioncompared to $723,000 in the prior-year quarter, while marketing expenses increased to $358,000 from $174,000 in3Q25. Both of these categories re ect higher costs related to several pending client and product conversions. Theseincreases were partially offset by disciplined reductions in other expenses, which declined $95,000, and employeeexpenses, which decreased $41,000 from the prior-year period. “Our core ef ciency ratio for the third quarter of 2026was 72.46 percent, compared to 69.00 percent in the third quarter of 2025 and 67.32 percent in the linked quarter,”stated Mr. Klein. “While overhead was elevated this quarter, our fundamental focus on positive operating leverage anddisciplined expense management remains a vital pillar as we proactively fund expansion across our growth markets.” Balance Sheet As of September 30, 2026, SB Financial reported total assets of $1.61 billion, representing an increase of $69.1 million fromDecember 31, 2025, and $118.2 million, or 7.9 percent, from September 30, 2025. The year-over-year asset growth wasprimarily driven by steady organic loan generation across our commercial and real estate lines. Cash and due frombanks increased by $17.4 million from the prior-year period to $102.4 million, normalizing during the quarter as fundswere strategically deployed into the loan portfolio. Key balance-sheet metrics for the quarter included a loan-to-depositratio of 88.1 percent and a loan-to-asset ratio of 75.5 percent, both of which remained well-aligned with our targetoperating bands. Total deposits at quarter end reached $1.38 billion, an increase of $120.3 million, or 9.5 percent, from the prior-yearquarter, supported by a competitive community banking footprint and durable client retention efforts. Noninterest-bearing demand deposits totaled $270.0 million, accounting for 19.5 percent of the total deposit portfolio. Shareholders’equity nished the period at $144.3 million, representing an increase of $7.4 million, or 5.4 percent from the prior-yearperiod, providing a solid foundation for ongoing organic loan growth initiatives. During the third quarter of 2026, SB Financial repurchased approximately 6,700 shares of its common stock, re ecting ameasured approach to capital allocation and ongoing evaluation of corporate priorities during the period. TheCompany remains committed to a prudent capital allocation strategy, supporting shareholder returns throughdividends and share buybacks while preserving the nancial exibility to fund organic expansion, strategic initiatives,and capital stability. “In summary, as we enter the nal quarter of 2026, SB Financial continues to operate from a position of fundamentalstrength, anchored by robust capital levels, exceptional credit quality, and a durable core deposit franchise,” stated Mr.Klein. “Achieving our tenth consecutive quarter of loan expansion demonstrates the strength of our relationship-basedcommunity banking model and localized lending expertise. Meanwhile, our nonperforming assets remain near historiclows at 0.27 percent of total assets, backed by strong reserve coverage that re ects our unyielding commitment todisciplined credit administration. Positioned with a resilient deposit base, growing fee-generating business lines, andcareful overhead control, we remain focused on nishing 2026 with strong momentum and driving long-term value forour shareholders.” Loan Balances ($ in thousands, except ratios) Sep. 2026 Jun. 2026Mar. 2026 Dec. 2025 Sep. 2025 AnnualGrowth Commercial $ 106,915$ 111,128$ 112,226$ 113,878$ 117,581 $(10,666) % of Total 8.8% 9.3% 9.5% 9.6% 10.6% -9.1% Commercial RE 640,127 611,274 601,556 596,983 535,307 104,820 % of Total 52.5% 51.4% 50.9% 50.6% 48.2% 19.6% Agriculture 83,804 81,341 78,569 76,514 65,150 18,654 % of Total 6.9% 6.8% 6.7% 6.5% 5.9% 28.6% Residential RE 294,321 295,481 299,741 304,741 309,140 (14,819) % of Total 24.1% 24.8% 25.4% 25.8% 27.8% -4.8% Consumer & Other 93,622 90,335 89,043 88,475 83,367 10,255 % of Total 7.7% 7.6% 7.5% 7.5% 7.5% 12.3% Total Loans $1,218,789$1,189,559$1,181,135$1,180,591 $1,110,545$108,244 Total Growth Percentage 9.7% Deposit Balances
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($ in thousands, except ratios) Sep. 2026 Jun. 2026Mar. 2026 Dec. 2025 Sep. 2025 AnnualGrowth Non-Int DDA $270,029$258,576$248,239$254,063$246,725$ 23,304 % of Total 19.5% 18.6% 18.1% 19.4% 19.5% 9.4% Interest DDA 205,459 206,593 215,594 202,501 194,420 11,039 % of Total 14.9% 14.9% 15.7% 15.5% 15.4% 5.7% Savings 312,212 325,675 333,662 296,484 290,111 22,101 % of Total 22.6% 23.4% 24.3% 22.7% 23.0% 7.6% Money Market 322,395 315,363 300,028 280,896 261,953 60,442 % of Total 23.3% 22.7% 21.9% 21.5% 20.7% 23.1% Time Deposits 272,769 284,940 274,300 273,300 269,313 3,456 % of Total 19.7% 20.5% 20.0% 20.9% 21.3% 1.3% Total Deposits $1,382,864$1,391,147$1,371,823$1,307,244$1,262,522$120,342 Total Growth Percentage 9.5% Asset Quality As of September 30, 2026, SB Financial continued to focus on maintaining strong asset quality metrics. Nonperformingassets totaled $4.3 million, representing 0.27 percent of total assets, an improvement of $574,000 compared to $4.9million, or 0.32 percent of total assets, in the prior-year quarter, and relatively stable compared to the linked-quarterbalance of $4.4 million, or 0.27 percent of total assets. Total nonaccruing loans declined signi cantly to $3.2 million from$4.6 million in the prior-year period, while foreclosed properties and repossessed assets stood at $1.1 million. The allowance for credit losses remained strong at 1.34 percent of total loans, providing 508.9 percent coverage ofnonperforming loans—a substantial increase from 345.4 percent in 3Q25 and consistent with 470.3 percent in thelinked quarter, re ecting a conservative approach to risk management. Annualized net loan charge-offs to averageloans remained exceptionally modest at less than 1 basis point, improving from 6 basis points in the linked quarter andcomparable to less than 1 basis point in the prior year quarter, with net charge-offs totaling $17,000. “Our asset quality metrics embody our commitment to disciplined risk management within a dynamic economicenvironment,” stated Mr. Klein. “With nonperforming assets down year-over-year and our allowance providing over 500percent coverage of nonperforming loans, our reserve position underscores the inherent quality of our loan portfolioand the strength of our client relationships. We remain dedicated to balancing our conservative credit discipline withproactive support for high-quality loan growth across all nine of our major markets.” Nonperforming Assets AnnualChange($ in thousands, except ratios) Sep. 2026Jun. 2026Mar. 2026Dec. 2025Sep. 2025 Commercial & Agriculture $ 1,054$ 1,304$ 1,359$ 2,256$ 2,243$ (1,189) % of Total Com./Ag. loans 0.55% 0.68% 0.71% 1.18% 1.23% -53.0% Commercial RE 195 339 668 771 778 (583) % of Total CRE loans 0.03% 0.06% 0.11% 0.13% 0.15% -74.9% Residential RE 1,493 1,476 1,439 1,322 1,400 93 % of Total Res. RE loans 0.51% 0.50% 0.48% 0.43% 0.45% 6.6% Consumer & Other 476 367 233 230 195 281 % of Total Con./Oth. loans 0.51% 0.41% 0.26% 0.26% 0.23% 144.1% Total Nonaccruing Loans 3,218 3,486 3,699 4,579 4,616 (1,398) % of Total loans 0.26% 0.29% 0.31% 0.39% 0.42% -30.3% Foreclosed Assets and Other Assets 1,061 936 974 104 237 824 Total Change (%) N/M Total Nonperforming Assets $ 4,279$ 4,422$ 4,673$ 4,683$ 4,853$ (574) % of Total assets 0.27% 0.27% 0.29% 0.30% 0.32% -11.83% Webcast and Conference Call The Company will hold the third quarter 2026 earnings conference call and webcast on October 22, 2026, at 3:30 p.m.EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed atir.yourstatebank.com. An audio replay of the call will be available on the Company’s website. About SB Financial Group Headquartered in De ance, Ohio, SB Financial is a diversi ed nancial 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
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nancial services for consumers and small businesses, including wealth management, private client services, mortgagebanking and commercial and agricultural lending, operating through a total of 27 of ces: 25 in eleven Ohio countiesand two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production of ces located throughoutOhio and Indiana. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SBFinancial’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-lookingstatements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statementsinvolve risks and uncertainties, and actual results may differ materially from those predicted by the forward-lookingstatements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in thenational and regional banking industry, changes in economic conditions in the market areas in which SB Financial andits subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies,changes in tax laws, uctuations in interest rates, demand for loans in the market areas in which SB Financial and itssubsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses ofsigni cant customers, geopolitical events, the loss of key personnel and other risks identi ed in SB Financial’s AnnualReport on Form 10-K and documents subsequently led 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 noobligation to update any forward-looking statement to re ect events or circumstances after the date on which thestatement is made, except as required by law. All subsequent written and oral forward-looking statements attributableto SB Financial or any person acting on its behalf are quali ed by these cautionary statements. Non-GAAP Financial Measures This press release contains nancial information determined by methods other than in accordance with U.S. generallyaccepted accounting principles (“GAAP”). Non-GAAP nancial measures, speci cally pre-tax, pre-provision income,tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangibleassets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and netinterest margin – FTE are used by the Company’s management to measure the strength of its capital and analyzepro tability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, theCompany 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 byproviding a greater understanding of its business, they should not be considered a substitute for nancial measuresdetermined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures thatmay be presented by other companies. Investor Contact Information: Mark A. KleinChairman, President and Chief Executive Of cerMark.Klein@YourStateBank.com Anthony V. CosentinoExecutive Vice President and Chief Financial Of cerTony.Cosentino@YourStateBank.com SB FINANCIAL GROUP, INC. CONSOLIDATED BALANCE SHEETS - (Unaudited) September June March December September ($ in thousands) 2026 2026 2026 2025 2025 ASSETS Cash and due from banks $ 102,427 $ 138,152 $ 126,293 $ 71,543 $ 85,025 Interest bearing time deposits 1,715 2,455 1,965 1,140 2,025 Available-for-sale securities 177,767 179,026 183,626 188,626 193,190 Loans held for sale 5,391 7,438 7,203 1,761 4,736 Loans, net of unearned income 1,218,789 1,189,559 1,181,135 1,180,591 1,110,545 Allowance for credit losses (16,377) (16,395) (16,388) (16,114) (15,943) Premises and equipment, net 20,775 21,088 21,295 21,688 21,764 Federal Reserve and FHLB Stock, atcost 5,674 5,502 5,463 5,610 5,466 Foreclosed assets 1,061 936 974 104 237 Interest receivable 5,989 5,455 5,499 5,490 5,455 Goodwill 27,158 27,158 27,158 27,158 27,158 Cash value of life insurance 32,469 32,354 32,401 32,208 32,004 Mortgage servicing rights 16,204 15,953 15,728 15,254 15,347 Other assets 15,449 11,383 12,246 10,308 9,254
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Total assets $ 1,614,491 $1,620,064 $1,604,598 $1,545,367 $1,496,263 LIABILITIES AND SHAREHOLDERS'EQUITY Deposits Non interest bearing demand $ 270,029 $ 258,576 $ 248,239 $ 254,063 $ 246,725 Interest bearing demand 205,459 206,593 215,594 202,501 194,420 Savings 312,212 325,675 333,662 296,484 290,111 Money market 322,395 315,363 300,028 280,896 261,953 Time deposits 272,769 284,940 274,300 273,300 269,313 Total deposits 1,382,864 1,391,147 1,371,823 1,307,244 1,262,522 Short-term borrowings 6,285 6,732 9,433 9,230 10,976 Federal Home Loan Bank advances 22,500 22,500 27,500 35,000 35,000 Trust preferred securities 10,310 10,310 10,310 10,310 10,310 Subordinated debt net of issuancecosts 19,775 19,763 19,751 19,739 19,726 Interest payable 2,572 2,470 2,553 2,460 2,739 Other liabilities 25,841 20,402 19,573 20,148 18,051 Total liabilities 1,470,147 1,473,324 1,460,943 1,404,131 1,359,324 Shareholders' Equity Common stock 61,319 61,319 61,319 61,319 61,319 Additional paid-in capital 15,178 15,275 15,065 15,160 15,086 Retained earnings 136,071 133,125 129,631 126,311 123,370 Accumulated othercomprehensive loss (27,138) (21,854) (21,861) (21,481) (23,412) Treasury stock (41,086) (41,125) (40,499) (40,073) (39,424) Total shareholders' equity 144,344 146,740 143,655 141,236 136,939 Total liabilities and shareholders'equity $ 1,614,491 $1,620,064 $1,604,598 $1,545,367 $1,496,263 SB FINANCIAL GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME - (Unaudited) ($ in thousands, exceptper share & ratios) At and for the Three Months Ended Nine Months Ended September June March DecemberSeptemberSeptemberSeptember Interest income 2026 2026 2026 2025 2025 2026 2025 Loans Taxable $ 18,244$17,498$17,246$ 17,234$ 16,449$ 52,988$ 47,752 Tax exempt 97 98 99 107 117 294 348 Securities Taxable 1,004 1,006 1,029 1,096 1,097 3,039 3,399 Tax exempt 36 36 36 36 35 108 108 Other interest income 1,145 1,182 897 799 1,111 3,224 3,041 Total interest income 20,526 19,820 19,307 19,272 18,809 59,653 54,648 Interest expense Deposits 6,369 6,237 5,957 5,820 5,721 18,563 16,670 Repurchaseagreements & other 6 7 14 22 28 27 73 Federal Home LoanBank advances 230 234 285 370 369 749 1,097 Trust preferredsecurities 146 145 144 154 162 435 483 Subordinated debt 351 243 195 194 195 789 584
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Total interest expense 7,102 6,866 6,595 6,560 6,475 20,563 18,907 Net interest income 13,424 12,954 12,712 12,712 12,334 39,090 35,741 Provision for creditlosses 127 299 214 198 124 640 1,108 Net interest incomeafter provision for credit losses 13,297 12,655 12,498 12,514 12,210 38,450 34,633 Noninterest income Wealth managementfees 954 955 941 900 912 2,850 2,635 Customer service fees 932 917 910 892 887 2,759 2,652 Gain on sale of mtg.loans & OMSR 1,262 1,541 978 1,272 1,328 3,781 3,743 Mortgage loanservicing fees, net 517 383 851 199 158 1,751 1,363 Gain on sale of non-mortgage loans 29 62 144 38 8 235 105 Title insurance revenue 514 577 485 525 544 1,576 1,523 Gain (loss) on sale ofassets (32) (9) 8 - - (33) - Other 475 561 395 (118) 407 1,431 1,378 Total noninterestincome 4,651 4,987 4,712 3,708 4,244 14,350 13,399 Noninterest expense Salaries and employeebene ts 7,339 7,005 6,096 6,047 6,198 20,440 19,030 Net occupancy expense 831 802 882 822 801 2,515 2,487 Equipment expense 1,205 1,226 1,244 1,154 1,188 3,675 3,381 Data processing fees 1,124 693 726 790 723 2,543 3,050 Professional fees 854 844 1,016 805 863 2,714 2,789 Marketing expense 358 255 277 122 174 890 529 Telephone andcommunicationexpense 119 126 118 124 123 363 387 Postage and deliveryexpense 149 146 187 140 157 482 401 State, local and othertaxes 311 221 288 331 268 820 760 Employee expense 214 177 184 158 255 575 605 Other expenses 653 642 911 746 748 2,206 2,341 Total noninterestexpense 13,157 12,137 11,929 11,239 11,498 37,223 35,760 Income before incometax expense 4,791 5,505 5,281 4,983 4,956 15,577 12,272 Income tax expense 845 1,008 985 1,065 910 2,838 2,216 Net income $ 3,946$ 4,497$ 4,296$ 3,918$ 4,046$ 12,739$ 10,056 Common share data: Basic earnings percommon share $ 0.64$ 0.72$ 0.69$ 0.63$ 0.64$ 2.05$ 1.57 Diluted earnings percommon share $ 0.63$ 0.72$ 0.69$ 0.63$ 0.64$ 2.04$ 1.56 Average sharesoutstanding (in
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thousands): Basic: 6,194 6,205 6,230 6,252 6,297 6,210 6,408 Diluted: 6,218 6,220 6,243 6,266 6,311 6,230 6,427 SB FINANCIAL GROUP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited) ($ in thousands,except per share &ratios) At and for the Three Months Ended Nine Months Ended September June March December SeptemberSeptemberSeptember SUMMARY OFOPERATIONS 2026 2026 2026 2025 2025 2026 2025 Net interestincome $ 13,424 $ 12,954 $ 12,712 $ 12,712 $ 12,334 $ 39,090 $ 35,741 Tax-equivalentadjustment 35 36 36 38 40 107 121 Tax-equivalentnet interest income 13,459 12,990 12,748 12,750 12,374 39,197 35,862 Provision forcredit loss 127 299 214 198 124 640 1,108 Noninterestincome 4,651 4,987 4,712 3,708 4,244 14,350 13,399 Total operatingrevenue 18,075 17,941 17,424 16,420 16,578 53,440 49,140 Noninterestexpense 13,157 12,137 11,929 11,239 11,498 37,223 35,760 Pre-tax pre-provision income 4,918 5,804 5,495 5,181 5,080 16,217 13,380 Net income 3,946 4,497 4,296 3,918 4,046 12,739 10,056 PER SHAREINFORMATION: Basic earnings pershare (EPS) 0.64 0.72 0.69 0.63 0.64 2.05 1.57 Diluted earningsper share 0.63 0.72 0.69 0.63 0.64 2.04 1.56 Commondividends 0.160 0.160 0.155 0.155 0.150 0.475 0.450 Book value percommon share 23.30 23.70 23.10 22.65 21.85 23.30 21.85 Tangible bookvalue per commonshare (TBV) 18.65 19.04 18.45 18.00 17.21 18.65 17.21 Market price percommon share 28.61 25.27 21.00 22.27 19.29 28.61 19.29 Market price toTBV 153.4% 132.7% 113.8% 123.7% 112.1% 153.4% 112.1% Market price totrailing 12 monthEPS 10.7 9.4 8.2 10.1 9.1 10.7 9.1 PERFORMANCERATIOS: Return onaverage assets(ROAA) 0.96% 1.12% 1.10% 1.01% 1.07% 1.06% 0.90% Pre-tax pre-provision ROAA 1.20% 1.45% 1.41% 1.34% 1.34% 1.44% 1.29% Return onaverage equity 10.34% 12.44% 12.04% 11.08% 12.08% 11.51% 10.15%
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(ROE) Return onaverage tangibleequity 12.77% 15.53% 15.06% 13.97% 15.47% 14.31% 12.89% Ef ciency ratio 72.46% 67.32% 68.12% 68.09% 69.00% 69.32% 72.41% Earning assetyield 5.35% 5.20% 5.29% 5.32% 5.31% 5.31% 5.27% Cost of interestbearing liabilities 2.38% 2.31% 2.31% 2.34% 2.33% 2.35% 2.33% Net interestmargin 3.50% 3.43% 3.48% 3.51% 3.48% 3.47% 3.44% Tax equivalenteffect 0.01% 0.01% 0.01% 0.01% 0.02% 0.02% 0.02% Net interestmargin, taxequivalent 3.51% 3.44% 3.49% 3.52% 3.50% 3.49% 3.46% Non interestincome/Averageassets 1.13% 1.24% 1.21% 0.96% 1.12% 1.19% 1.20% Non interestexpense/Averageassets 3.21% 3.03% 3.06% 2.90% 3.04% 3.10% 3.21% Net noninterestexpense/Averageassets -2.07% -1.78% -1.85% -1.94% -1.92% -1.90% -2.01% ASSET QUALITYRATIOS: Gross charge-offs 133 196 33 133 11 362 146 Recoveries 116 3 8 3 9 126 14 Net charge-offs 17 193 25 130 2 236 132 Nonperformingloans/Total loans 0.26% 0.29% 0.31% 0.39% 0.42% 0.26% 0.42% Nonperformingassets/Loans &OREO 0.35% 0.37% 0.40% 0.40% 0.44% 0.35% 0.44% Nonperformingassets/Total assets 0.27% 0.27% 0.29% 0.30% 0.32% 0.27% 0.32% Allowance forcreditloss/Nonperformingloans 508.92% 470.31% 443.04% 351.91% 345.39% 508.92% 345.39% Allowance forcredit loss/Totalloans 1.34% 1.38% 1.39% 1.36% 1.44% 1.34% 1.44% Net loan charge-offs/Average loans(ann.) 0.01% 0.06% 0.01% 0.04% 0.00% 0.03% 0.02% CAPITAL &LIQUIDITY RATIOS: Loans/ Deposits 88.14% 85.51% 86.10% 90.31% 87.96% 88.14% 87.96% Equity/ Assets 8.94% 9.06% 8.95% 9.14% 9.15% 8.94% 9.15% Tangibleequity/Tangibleassets 7.29% 7.41% 7.28% 7.40% 7.35% 7.29% 7.35% Common equitytier 1 ratio (Bank) 12.09% 12.37% 12.11% 11.78% 12.48% 12.09% 12.48% END OF PERIODBALANCES Total assets 1,614,491 1,620,064 1,604,598 1,545,367 1,496,263 1,614,491 1,496,263 Total loans 1,218,789 1,189,559 1,181,135 1,180,591 1,110,545 1,218,789 1,110,545 Deposits 1,382,864 1,391,147 1,371,823 1,307,244 1,262,522 1,382,864 1,262,522 Shareholdersequity 144,344 146,740 143,655 141,236 136,939 144,344 136,939
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Goodwill andintangibles 28,811 28,870 28,929 28,989 29,048 28,811 29,048 Tangible equity 115,533 117,870 114,726 112,247 107,891 115,533 107,891 Mortgageservicing portfolio 1,517,593 1,504,657 1,482,052 1,479,982 1,470,360 1,517,593 1,470,360 Wealth/Brokerageassets under care 578,292 585,919 556,930 566,004 563,036 578,292 563,036 Total assets undercare 3,710,376 3,710,640 3,643,580 3,591,353 3,529,659 3,710,376 3,529,659 Full-timeequivalentemployees 266 258 258 252 253 266 253 Period endcommon sharesoutstanding 6,196 6,191 6,219 6,236 6,268 6,196 6,268 Marketcapitalization (all) 177,274 156,436 130,597 138,883 120,907 177,274 120,907 AVERAGEBALANCES Total assets 1,628,195 1,608,355 1,579,781 1,536,215 1,502,389 1,606,315 1,487,251 Total earningassets 1,521,057 1,521,057 1,479,667 1,436,207 1,404,330 1,502,326 1,387,258 Total loans 1,217,995 1,193,207 1,186,225 1,158,567 1,104,175 1,199,258 1,091,670 Deposits 1,393,085 1,381,439 1,347,351 1,299,512 1,270,783 1,373,977 1,256,732 Shareholdersequity 151,417 145,034 144,659 140,315 132,866 147,936 132,426 Goodwill andintangibles 28,840 28,899 28,959 29,027 29,077 28,899 28,140 Tangible equity 122,577 116,135 115,700 111,288 103,789 119,037 104,286 Average basicshares outstanding 6,194 6,205 6,230 6,252 6,297 6,210 6,408 Average dilutedshares outstanding 6,218 6,220 6,243 6,266 6,311 6,230 6,427 SB FINANCIAL GROUP, INC. Rate Volume Analysis - (Unaudited) For the Three & Nine Months Ended Sep. 30, 2026 and 2025 ($ in thousands) Three Months Ended Sep. 30,2026 Three Months Ended Sep. 30,2025 Average Average Average Average Assets Balance Interest Rate Balance Interest Rate Taxable securities $177,850$ 1,004 2.24%$ 193,893$ 1,097 2.24% Overnight Cash 120,444 1,145 3.77% 100,164 1,111 4.40% Nontaxable securities 4,768 36 3.00% 6,098 35 2.28% Loans, net 1,217,995 18,341 5.97% 1,104,175 16,566 5.95% Total earning assets 1,521,057 20,526 5.35% 1,404,330 18,809 5.31% Cash on hand 5,415 5,044 Allowance for loan losses (16,515) (15,750) Premises and equipment 21,003 21,854 Other assets 97,235 86,911 Total assets $1,628,195 $1,502,389 Liabilities Savings, MMDA and interest bearingdemand $845,195$ 4,121 1.93%$753,639$ 3,442 1.81% Time deposits 277,406 2,248 3.22% 267,984 2,279 3.37% Repurchase agreements & other 7,689 6 0.31% 14,015 28 0.79% Advances from Federal Home Loan Bank 22,500 230 4.06% 35,000 369 4.18% Trust preferred securities 10,310 146 5.62% 10,310 162 6.23%
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Subordinated debt 19,767 351 7.04% 19,719 195 3.92% Total interest bearing liabilities 1,182,867 7,102 2.38% 1,100,667 6,475 2.33% Non interest bearing demand 270,484 - 249,160 - Total funding 1,453,351 1.94% 1,349,827 1.90% Other liabilities 23,427 19,696 Total liabilities 1,476,778 1,369,523 Equity 151,417 132,866 Total liabilities and equity $1,628,195 $1,502,389 Net interest income $ 13,424 $ 12,334 Net interest income as a percent ofaverage interest-earning assets - GAAPmeasure 3.50% 3.48% Net interest income as a percent of average interest-earningassets - non GAAP 3.51% 3.50% - Computed on a fully tax equivalent (FTE) basis Nine Months Ended Sep. 30,2026 Nine Months Ended Sep. 30,2025 Average Average Average Average Assets Balance Interest Rate Balance Interest Rate Taxable securities $182,870$ 3,039 2.22%$ 198,463$ 3,399 2.29% Overnight Cash 115,431 3,224 3.73% 90,829 3,041 4.48% Nontaxable securities 4,767 108 3.03% 6,296 108 2.29% Loans, net 1,199,258 53,282 5.94% 1,091,670 48,100 5.89% Total earning assets 1,502,326 59,653 5.31% 1,387,258 54,648 5.27% Cash on hand 5,429 4,880 Allowance for loan losses (16,398) (15,492) Premises and equipment 21,245 21,555 Other assets 93,713 89,050 Total assets $1,606,315 $1,487,251 Liabilities Savings, MMDA and interest bearingdemand $831,888$ 11,767 1.89%$734,938$ 9,624 1.75% Time deposits 276,916 6,796 3.28% 273,508 7,046 3.44% Repurchase agreements & Other 8,341 27 0.43% 12,549 73 0.78% Advances from Federal Home Loan Bank 24,533 749 4.08% 35,015 1,097 4.19% Trust preferred securities 10,310 435 5.64% 10,310 483 6.26% Subordinated debt 19,755 789 5.34% 19,707 584 3.96% Total interest bearing liabilities 1,171,743 20,563 2.35% 1,086,027 18,907 2.33% Non interest bearing demand 265,173 1.91% 248,286 1.89% Total funding 1,436,916 1,334,313 Other liabilities 21,463 20,512 Total liabilities 1,458,379 1,354,825 Equity 147,936 132,426 Total liabilities and equity $1,606,315 $1,487,251 Net interest income $39,090 $ 35,741 Net interest income as a percent ofaverage interest-earning assets - GAAPmeasure 3.48% 3.44% Net interest income as a percent of average interest-earningassets - non GAAP 3.49% 3.46% - Computed on a fully tax equivalent (FTE) basis
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Non-GAAP reconciliation Three Months Ended Nine Months Ended ($ in thousands, except per share & ratios) Sep. 30, 2026 Sep. 30, 2025 Sep. 30, 2026 Sep. 30, 2025 Total Operating Revenue $ 18,075 $ 16,578 $ 53,440 $ 49,140 Adjustment to (deduct)/add OMSRrecapture/impairment * (43) 301 (398) 131 Adjusted Total Operating Revenue 18,032 16,879 53,042 49,271 Total Operating Expense 13,157 11,498 37,223 35,760 Adjustment for merger expenses - - - (726) Adjusted Total Operating Expense 13,157 11,498 37,223 35,034 Income before Income Taxes 4,791 4,956 15,577 12,272 Adjustment for OMSR*/Merger Expenses (43) 301 (398) 857 Adjusted Income before Income Taxes 4,748 5,257 15,179 13,129 Provision for Income Taxes 845 910 2,838 2,216 Adjustment for OMSR/Merger Expenses ** (9) 63 (84) 180 Adjusted Provision for Income Taxes 836 973 2,754 2,396 Net Income 3,946 4,046 12,739 10,056 Adjustment for OMSR*/Merger Expenses (34) 238 (314) 677 Adjusted Net Income 3,912 4,284 12,425 10,733 Diluted Earnings per Share 0.63 0.64 2.04 1.56 Adjustment for OMSR*/Merger Expenses (0.01) 0.04 (0.05) 0.11 Adjusted Diluted Earnings per Share $ 0.63 $ 0.68 $ 1.99 $ 1.67 Return on Average Assets 0.96% 1.07% 1.06% 0.90% Adjustment for OMSR*/Merger Expenses (0.00) 0.06% -0.03% 0.06% Adjusted Return on Average Assets 0.95% 1.13% 1.03% 0.96% *valuation adjustment to the Company's mortgage servicingrights **tax effect is calculated using a 21% statutory federal corporate income taxrate