Exhibit 99.1

SB Financial Group Announces Third Quarter 2024 Results

DEFIANCE, OH, October 24, 2024 -- 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 third quarter ended September 30, 2024.

Third Quarter 2024 Highlights compared to the third quarter of the prior year:

Nine Months Ended September 30, 2024, highlights over prior-year nine months include:

Trailing Twelve Months Ended September 30, 2024, highlights compared to the prior year:

“We delivered strong operational performance during the September quarter with our pretax preprovision earnings up over 14% when we adjust for the servicing rights impairment,” stated Mark A. Klein, Chairman, President, and CEO. “We are on track with our Marblehead acquisition and are especially pleased that we have increased the tangible book value per share by 26% in the last year.”

“Our Loan Book expanded to $1.03 billion, an increase of $40.9 million, underscoring our disciplined approach to portfolio expansion. Despite market pressures from interest rates, our deposits increased by $74.2 million or 6.8% year-over-year reaching $1.16 billion,” added Mr. Klein.

RESULTS OF OPERATIONS

Consolidated Revenue

In the third quarter of 2024, core earnings and margins rose with operating revenue rising to $14.3 million, a 4.5% increase from the $13.7 million in the prior year. While net interest income rose to $10.2 million, a 6.8% increase year-over-year, the Company faced pressure from rising deposit costs, which drove a 21% increase in interest expenses. Despite this, net interest margin saw a slight expansion, increasing by 9 basis points compared to the same period last year, reaching 3.17%.

Noninterest income was down 1.0%, however, when adjusted for the servicing rights impairment and the gain on sale of assets, it was up nearly 4%. Mortgage gain on sale had its best quarter since the first quarter of 2022 and we saw solid increases in Title insurance revenue (up 13%) and Wealth management revenue (up 5%).

Mortgage Loan Business

In the third quarter of 2024, SB Financial Group recorded a 15.5% year-over-year increase in mortgage loan originations, reaching $70.7 million, up from $61.2 million in the corresponding period last year. This strong performance reflects our ability to capitalize on favorable market conditions and underscores the resilience of the housing sector, which continues to show signs of strength despite broader economic challenges. Mortgage sales followed this growth, reaching $61.3 million, or 86.6% of total originations. This represents a 13.3% year-over-year increase from $54.1 million, signaling our ongoing success in expanding our market reach and maintaining a competitive position. The sales volume highlights the robustness of our operations, even as competition intensifies in the residential lending space.

However, mortgage banking net revenue decreased to $1.35 million, down 17.9% from $1.65 million in the prior year. This decline was primarily driven by a negative Originated Mortgage Servicing Rights (“OMSR”) valuation adjustment of $465 thousand this quarter, significantly impacting net loan servicing fees. This reflects broader market headwinds, including shifts in borrower behavior and refinancing rates, which put pressure on servicing valuations. Despite this, gains from the sale of mortgages and continued efficiency in our operations helped partially offset the decline. The mortgage servicing portfolio expanded by 2.9%, reaching $1.41 billion. This steady growth in our servicing portfolio is a testament to our commitment to building long-term, sustainable relationships.

Mr. Klein stated, “This quarter has showcased improved efficiency in our mortgage operations. Although our results slightly missed our internal targets, the shortfall primarily reflects the heightened competitiveness and shifting dynamics within the mortgage market. Despite these challenges, our proactive measures, including expanding our origination teams, including closing our first loan from the Cincinnati market, have positioned us to capitalize on market opportunities and maintain our momentum.”

Noninterest Income and Noninterest Expense

For the third quarter of 2024, SB Financial Group’s noninterest income slightly declined to $4.12 million, representing a 1.0% decrease compared to $4.16 million in the third quarter of 2023. This minor reduction was primarily driven by lower mortgage loan servicing fees, which fell from $438 thousand in the third quarter of 2023 to $39 thousand in the third quarter of 2024, reflecting significant pressure in the mortgage servicing market. Furthermore, other noninterest income also contributed to the decline. However, this was partially offset by an increase in wealth management fees, which rose by 5.4% to $882 thousand, and a gain on the sale of mortgage loans and OMSR, which increased to $1.31 million from $1.21 million in the prior-year quarter. The gain on the sale of assets further contributed positively with $200 thousand realized this quarter.

Noninterest expenses for the third quarter were reported at $11.0 million, reflecting a 5.0% increase compared to $10.5 million in the third quarter of 2023. This rise was primarily driven by the increase of additional talent, which rose by 10.3% to $6.06 million, along with a 17% increase in data processing fees to $758 thousand. While certain expense categories saw reductions, such as other expenses, which decreased to $804 thousand from $1.1 million in the prior year, these declines were not sufficient enough to offset the overall increase in operating expenses.

Mr. Klein commented on the financial performance, stating, “Our noninterest income continues to show resilience, supported by gains from mortgage-related activities and consistent wealth management performance. As expected, the competitive environment and market fluctuations impacted servicing fees. On the expense side, our focus remains on managing costs related to growth initiatives, and we are committed to optimizing our cost structure to maintain operational efficiency and deliver sustained value to our stakeholders.”

Balance Sheet

As of September 30, 2024, SB Financial Group continued to demonstrate financial stability, with total assets increasing to $1.39 billion, a 5.1% increase from $1.33 billion at the end of the prior-year period. This growth underscores our ability to maintain a robust financial position amidst changing market conditions.

Our loan portfolio remained strong, standing at $1.03 billion, up by $40.9 million or 4.1% compared to the prior year. This growth highlights our effective lending practices and strong demand in the credit market. Additionally, cash and cash equivalents increased significantly to $49.3 million, up 159.1% from $19.0 million a year ago, enhancing our liquidity position and providing us with greater flexibility in navigating economic uncertainties.

Deposits increased to $1.16 billion, reflecting a 6.8% growth compared to the prior-year figure of $1.09 billion, driven by increases across all interest-bearing deposit categories. This growth reflects continued trust from our clients and a solid base to support ongoing operations.

Shareholders’ equity expanded significantly to $132.8 million, a 5.9% increase from the linked quarter and an 18.2% year-over-year rise, underscoring our commitment to driving shareholder value. This improvement can be attributed to retained earnings growth and an improvement in accumulated comprehensive losses. The year-over-year growth in shareholders’ equity reflects our focus on strengthening the balance sheet and optimizing capital allocation strategies.

Mr. Klein, commented, “In 2024, we have maintained a disciplined and proactive approach to our growth and capital management, aligning closely with our strategic objectives. Our ability to sustain and grow our loan portfolio, even in a highly competitive market, demonstrates the resilience of our business model and the effectiveness of our relationship-driven lending practices. Furthermore, the year-over-year increase in shareholders’ equity highlights our continued commitment to delivering shareholder value. We remain poised to leverage future opportunities that will further fortify our financial position and ensure long-term prosperity for our stakeholders.”

Asset Quality

SB Financial Group’s commitment to maintaining exceptional asset quality remained strong through the third quarter of 2024. As of September 2024, nonperforming loans constituted 0.54% of total loans, an increase from 0.47% in the prior quarter. While the allowance for credit losses coverage stood at 276.8% of nonperforming loans—below the 330% reported in the linked quarter—it remains robust, signaling a conservative approach to risk management.

Additionally, the net loan charge-offs to average loans ratio was a modest 0.01%, further highlighting SB Financial Group’s effective loan repayment management. Collectively, these metrics reinforce our reputation for disciplined risk oversight and credit administration.

Mr. Klein concluded, “Our third quarter performance underscores our continued commitment to maintaining high asset quality. Although we observed a slight increase in nonperforming loans and a decrease in our reserve coverage ratio, our allowance for credit losses remains robust. This, coupled with our disciplined approach to credit risk management, demonstrates our focus on preserving the long-term strength of our loan portfolio and ensuring stability amidst ongoing economic shifts.”

Webcast and Conference Call

The Company will hold the third quarter 2024 earnings conference call and webcast on October 25, 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”.

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

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)

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For the Three and Nine Months Ended Sep. 30, 2024 and 2023