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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) May 6, 2025 (May 1, 2025)

 

SB FINANCIAL GROUP, INC

 

(Exact name of registrant as specified in its charter)

 

Ohio   001-36785   34-1395608
(State or other jurisdiction of incorporation)  

(Commission File Number)

 

(IRS Employer
Identification No.)

 

401 Clinton Street, Defiance, OH   43512
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code (419) 783-8950

 

Not Applicable

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading symbol(s)   Name of each exchange on which registered

Common Shares, No Par Value 6,526,996 Outstanding at May 6, 2025

  SBFG  

The NASDAQ Stock Market, LLC

(NASDAQ Capital Market)

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 


 

Item 2.02. Results of Operations and Financial Condition.

 

On May 1, 2025, SB Financial Group, Inc. (the “Company”) issued a news release reporting financial results for the first quarter 2025. A copy of the May 1, 2025 news release is furnished as Exhibit 99.1 and is incorporated herein by reference.

 

The information in this Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(a) Not Applicable

 

(b) Not Applicable

 

(c) Not Applicable

 

(d) Exhibits

 

Exhibit No.   Description
99.1   News release issued by SB Financial Group, Inc. on May 1, 2025, reporting financial results for the first quarter 2025.
     
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

-1-


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  SB FINANCIAL GROUP, INC.
   
Dated:  May 6, 2025 By: /s/ Anthony V. Cosentino
    Anthony V. Cosentino
    Chief Financial Officer

 

-2-


 

INDEX TO EXHIBITS

 

Current Report on Form 8-K

Dated May 6, 2025

 

SB Financial Group, Inc.

 

Exhibit No.   Description
99.1   News release issued by SB Financial Group, Inc. on May 1, 2025, reporting financial results for the first quarter 2025.
     
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

-3-

 

 

EX-99.1 2 ea024093901ex99-1_sbfin.htm NEWS RELEASE ISSUED BY SB FINANCIAL GROUP, INC. ON MAY 1, 2025, REPORTING FINANCIAL RESULTS FOR THE FIRST QUARTER 2025

Exhibit 99.1

 

 

SB Financial Group Announces First Quarter 2025 Results

 

DEFIANCE, OH, May 1, 2025 -- 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 ended March 31, 2025.

 

First Quarter 2025 Highlights Over the First Quarter Prior Year Include:

 

Adjusted net income of $2.7 million, after accounting for $0.7 million of nonrecurring merger expenses, was up 23.2 percent from the prior year adjusted net income of $2.2 million, with adjusted Diluted Earnings Per Share (“DEPS”) of $0.42. Unadjusted net income and EPS were slightly below the prior year quarter.

 

Successful completion of the Marblehead Bank acquisition, adding $56 million of low-cost deposits and $19 million in loans.

 

Interest income of $17.4 million increased by 13.5 percent from $15.3 million reported in the prior year quarter.

 

Loan growth of $96.7 million, or 9.8 percent from the prior-year quarter, with growth from the linked quarter of $41.6 million. This was our fourth consecutive quarter of sequential expanding loan growth, year over year. Growth adjusted for the Marblehead acquisition would be $78.2 and $23.1 million, from the linked quarter.

 

Deposit growth of $159.7 million, or 14.4 percent from the prior-year quarter, with growth from the linked quarter of $119.4 million. Growth adjusted for the Marblehead acquisition would be $103.7 and $63.4 million, from the linked quarter.

 

Tangible book value (“TBV”) per share ended the quarter at $15.79 up $0.86 per share or 5.8 percent from the prior year quarter. Absent the per share dilution from the acquisition of $0.87, TBV would have been up $1.73 per share or 11.6 percent.

 

Earnings Highlights   Three Months Ended  
($ in thousands, except per share & ratios)   Mar. 2025     Mar. 2024     % Change  
Operating revenue   $ 15,386     $ 13,131       17.2 %
Interest income     17,372       15,300       13.5 %
Interest expense     6,093       6,120       -0.4 %
Net interest income     11,279       9,180       22.9 %
Provision for credit losses     387       -       N/M  
Noninterest income     4,107       3,951       3.9 %
Noninterest expense     12,410       10,282       20.7 %
Net income     2,158       2,368       -8.9 %
Merger adjusted Earnings per diluted share     0.42       0.33       27.3 %
Earnings per diluted share     0.33       0.35       -5.7 %
Merger adjusted Return on Avg. Assets     0.76 %     0.67 %     13.4 %
Return on average assets     0.60 %     0.71 %     -15.5 %
Merger adjusted Return on Avg. Equity     8.35 %     7.26 %     15.0 %
Return on average equity     6.63 %     7.72 %     -14.1 %

 

“Our first quarter results highlight the value of our growth strategy, even in the midst of temporary economic uncertainty,” said Mark A. Klein, Chairman, President, and CEO. “Merger adjusted net income for the quarter was $2.7 million, a 22.3 percent increase from the prior-year quarter, with the GAAP EPS of $0.33 slightly down from the prior year. The successful closing of the acquisition in the first quarter significantly strengthened our liquidity position through their low-cost deposit base and further expanded our market presence in Northern Ohio. This marks an important milestone in executing our long-term growth strategy to grow organically and through M & A.”

 


 

Interest income for the quarter grew by 13.5 percent to $17.4 million compared to the previous year, driven by continued strong loan growth. Total loans increased by $96.7 million, compared to the prior year, and by $41.5 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $78.2 and $23.1 million, respectively. Deposits rose by $158.9 million, or 14.3 percent, to $1.27 billion, a result of the acquisition and a testament to the trust our clients place in us. Adjusted for the acquisition, deposit growth would have been $102.9 and $62.6 million, respectively.

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

In the first quarter of 2025, total operating revenue increased to $15.4 million, a 17.2 percent rise from $13.1 million in the prior year and a slight 0.1 percent decrease from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $11.3 million, a strong 22.9 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.7 million to $15.4 million. Deposit costs increased by 5.1 percent to $5.4 million, but were largely offset by decreases in interest expense on other funding sources, resulting in a 0.4 percent decrease in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 41 basis points year-over-year to 3.40 percent, reflecting the continued strength of our interest-earning assets and disciplined management of our funding costs. Noninterest income for the quarter increased by 3.9 percent year-over-year to $4.1 million due to improvements in gains on sale and title insurance, partially offset by decreases in mortgage loan servicing fees. Looking ahead, we remain focused on maintaining a balanced strategy that drives sustainable revenue growth while effectively managing costs, ensuring consistent value creation for our shareholders.

 

Mortgage Loan Business

 

Net mortgage banking revenue for the quarter reached $1.5 million, down $84,000 from the prior-year quarter. Loan servicing fees added $894,000 to revenue, reflecting an increase of $39,000 from the prior year quarter. The OMSR net valuation adjustment for the first quarter of 2025 was a positive $11,000 compared to a positive $181,000 in the first quarter of 2024.

 

Mortgage Banking

 

($ in thousands)   Mar. 2025     Dec. 2024     Sep. 2024     Jun. 2024     Mar. 2024     Prior Year Growth  
Mortgage originations   $ 39,775     $ 72,534     $ 70,715     $ 75,110     $ 42,912     $ (3,137 )
Mortgage sales     39,279       62,301       61,271       55,835       36,623       2,656  
Mortgage servicing portfolio     1,432,184       1,427,318       1,406,273       1,389,805       1,371,713       60,471  
Mortgage servicing rights     14,965       14,868       14,357       14,548       14,191       774  
                                                 
                                                 
Revenue                                                
Loan servicing fees     894       886       874       862       855       39  
OMSR amortization     (294 )     (358 )     (370 )     (335 )     (273 )     (21 )
Net administrative fees     600       528       504       527       582       18  
OMSR valuation adjustment     11       288       (465 )     38       181       (170 )
Net loan servicing fees     611       816       39       565       763       (152 )
Gain on sale of mortgages     849       1,196       1,311       1,277       781       68  
Mortgage banking revenue, net   $ 1,460     $ 2,012     $ 1,350     $ 1,842     $ 1,544     $ (84 )

 

1


 

Noninterest Income and Noninterest Expense

 

“Noninterest income for the first quarter of 2025 totaled $4.1 million, up $156,000 or 3.9 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $68,000 year over year, and title insurance revenue added $131,000, reflecting the consistent benefit of our revenue diversification strategy,” Mr. Klein noted.

 

Noninterest Income/Noninterest Expense

 

($ in thousands, except ratios)   Mar. 2025     Dec. 2024     Sep. 2024     Jun. 2024     Mar. 2024     Prior Year Growth  
Noninterest Income (NII)   $ 4,107     $ 4,557     $ 4,123     $ 4,386     $ 3,951     $ 156  
NII / Total Revenue     26.7 %     29.5 %     28.8 %     31.5 %     30.1 %     -3.4 %
NII / Average Assets     1.1 %     1.3 %     1.2 %     1.3 %     1.2 %     -0.1 %
Total Revenue Growth     17.2 %     2.2 %     4.5 %     -0.6 %     -6.1 %     23.3 %
                                                 
Noninterest Expense (NIE)   $ 12,410     $ 11,003     $ 11,003     $ 10,671     $ 10,282     $ 2,128  
Efficiency Ratio     80.0 %     71.1 %     76.8 %     75.9 %     78.2 %     1.8 %
NIE / Average Assets     3.4 %     3.2 %     3.2 %     3.2 %     3.1 %     0.3 %
Net Noninterest Expense/Avg. Assets     -2.3 %     -1.9 %     -2.0 %     -1.9 %     -1.9 %     -0.4 %
Total Expense Growth     20.7 %     6.1 %     5.0 %     3.2 %     -4.6 %     25.3 %

 

Noninterest expense for the first quarter of 2025 was impacted by the one-time merger related expenses of $726,000. Adjusting for these expenses and the $300,000 in Marblehead operating expenses for the quarter, total operating costs were up just 3.5 percent from the linked quarter and 10.7 percent.

 

“Our efficiency ratio in the first quarter of 2025 was 76.0 percent when we factor out the merger related costs, which was an improvement compared to the prior year.” stated Mr. Klein.

 

Balance Sheet

 

As of March 31, 2025, SB Financial reported total assets of $1.50 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 $1.09 billion, marking a $96.7 million or 9.8 percent increase year over year. Loan growth also included $18.7 million in loans added with the completion of the acquisition. Cash increased by $78.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.

 

Total deposits increased to $1.27 billion, growing $158.9 million or 14.3 percent year over year, including $56 million in low-cost deposits from the acquisition and $102.9 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement. Shareholders’ equity ended the quarter at $131.5 million, representing a $7.8 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 first quarter, SB Financial repurchased 26,446 shares, less than previous quarters as the average price was above our target range. This reflects the Company’s dedication to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth.

 

2


 

“As we progress through the remainder of 2025, our balance sheet strength and strategic management of resources highlight our long-term strategic growth ambitions, both organically and through successful acquisitions,” said Mr. Klein, Chairman, President, and CEO. “Even in the current challenging rate environment, we achieved our fourth consecutive quarter of loan growth, with balances increasing by $96.7 million from the previous year, which included $78.2 million of organic loan growth. This performance underscores the strength of our deep client relationships and our continued competitiveness in the market. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, which we will leverage to take advantage of emerging opportunities while maintaining our focus on operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economic landscape stabilizes.”

 

Loan Balances

 

($ in thousands, except ratios)   Mar. 2025     Dec. 2024     Sep. 2024     Jun. 2024     Mar. 2024     Annual Growth  
Commercial   $ 125,878     $ 124,764     $ 123,821     $ 123,287     $ 120,016     $ 5,862  
% of Total     11.6 %     11.9 %     12.0 %     12.3 %     12.1 %     4.9 %
Commercial RE     509,518       479,573       459,449       434,967       429,362       80,156  
% of Total     46.8 %     45.8 %     44.6 %     43.3 %     43.3 %     18.7 %
Agriculture     61,443       64,680       64,887       64,329       62,365       (922 )
% of Total     5.6 %     6.2 %     6.3 %     6.4 %     6.3 %     -1.5 %
Residential RE     319,307       308,378       314,010       316,233       314,668       4,639  
% of Total     29.3 %     29.5 %     30.5 %     31.5 %     31.7 %     1.5 %
Consumer & Other     72,128       69,340       67,788       66,574       65,141       6,987  
% of Total     6.6 %     6.6 %     6.6 %     6.6 %     6.6 %     10.7 %
Total Loans   $ 1,088,274     $ 1,046,735     $ 1,029,955     $ 1,005,390     $ 991,552     $ 96,722  
Total Growth Percentage                                             9.8 %

 

Deposit Balances

 

($ in thousands, except ratios)   Mar. 2025     Dec. 2024     Sep. 2024     Jun. 2024     Mar. 2024     Annual Growth  
Non-Int DDA   $ 240,446     $ 232,155     $ 222,425     $ 208,244     $ 219,395     $ 21,051  
% of Total     18.9 %     20.1 %     19.2 %     18.7 %     19.7 %     9.6 %
Interest DDA     208,583       201,085       202,097       190,857       169,171       39,412  
% of Total     16.4 %     17.4 %     17.4 %     17.1 %     15.2 %     23.3 %
Savings     285,902       237,987       241,761       231,855       244,157       41,745  
% of Total     22.5 %     20.6 %     20.8 %     20.8 %     21.9 %     17.1 %
Money Market     257,013       222,161       228,182       225,650       221,362       35,651  
% of Total     20.2 %     19.3 %     19.7 %     20.2 %     19.9 %     16.1 %
Time Deposits     279,276       259,217       265,068       258,582       258,257       21,019  
% of Total     22.0 %     22.5 %     22.9 %     23.2 %     23.2 %     8.1 %
Total Deposits   $ 1,271,220     $ 1,152,605     $ 1,159,533     $ 1,115,188     $ 1,112,342     $ 158,878  
Total Growth Percentage                                             14.3 %

 

3


 

Asset Quality

 

As of March 31, 2025, SB Financial continued to demonstrate strong asset quality metrics. Nonperforming assets totaled $6.1 million, representing 0.41 percent of total assets, an increase of $3.2 million compared to $2.9 million or 0.22 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we continue to expect to resolve favorably in 2025.

 

The allowance for credit losses remained strong at 1.41 percent of total loans, providing 254.4 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of our conservative approach to risk management amid the current environment. The net loan charge-offs to average loans ratio remained modest at 3 basis points, improving from 7 basis points in the prior quarter and consistent with the year-ago period, reflecting disciplined credit practices and effective collateral management.

 

“Our asset quality metrics fully illustrate the diligence of our approach and commitment to disciplined risk management,” stated Mark Klein, Chairman, President, and CEO. “While we observed a slight uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio. We remain focused on balancing our conservative approach in maintaining the integrity of our credit processes with the need to effectively manage our balance sheet for long-term growth.”

 

Nonperforming Assets
($ in thousands, except ratios)
  Mar. 2025     Dec. 2024     Sep. 2024     Jun. 2024     Mar. 2024     Annual
Change
 
Commercial & Agriculture   $ 3,418     $ 2,927     $ 2,899     $ 2,781     $ 897     $ 2,521  
% of Total Com./Ag. loans     1.82 %     1.55 %     1.54 %     1.48 %     0.49 %     281.0 %
Commercial RE     798       807       813       475       49       749  
% of Total CRE loans     0.16 %     0.17 %     0.18 %     0.11 %     0.01 %     1528.6 %
Residential RE     1,608       1,539       1,536       1,247       1,295       313  
% of Total Res. RE loans     0.50 %     0.50 %     0.49 %     0.39 %     0.41 %     24.2 %
Consumer & Other     227       243       270       231       193       34  
% of Total Con./Oth. loans     0.31 %     0.35 %     0.40 %     0.35 %     0.30 %     17.6 %
Total Nonaccruing Loans     6,051       5,516       5,518       4,734       2,434       3,617  
% of Total loans     0.56 %     0.53 %     0.54 %     0.47 %     0.25 %     148.6 %
Foreclosed Assets and Other Assets     73       -       -       510       510       (437 )
Total Change (%)                                             -85.7 %
Total Nonperforming Assets   $ 6,124     $ 5,516     $ 5,518     $ 5,244     $ 2,944     $ 3,180  
% of Total assets     0.41 %     0.40 %     0.40 %     0.39 %     0.22 %     108.02 %

  

Webcast and Conference Call

 

The Company will hold the first quarter 2025 earnings conference call and webcast on May 2, 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 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 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 and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

 

4


 

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

 

5


 

SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

  

    March     December     September     June     March  
($ in thousands)   2025     2024     2024     2024     2024  
ASSETS                              
Cash and due from banks   $ 105,145     $ 25,928     $ 49,348     $ 21,983     $ 26,602  
Interest bearing time deposits     1,565       1,565       1,706       2,417       2,417  
Available-for-sale securities     199,721       201,587       211,511       207,856       213,239  
Loans held for sale     4,286       6,770       8,927       7,864       4,730  
Loans, net of unearned income     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
Allowance for credit losses     (15,391 )     (15,096 )     (15,278 )     (15,612 )     (15,643 )
Premises and equipment, net     21,875       20,456       20,715       20,860       20,985  
Federal Reserve and FHLB Stock, at cost     5,340       5,223       5,223       5,204       6,512  
Foreclosed assets and other assets     73       -       -       510       510  
Interest receivable     5,072       4,908       4,842       4,818       3,706  
Goodwill     27,158       23,239       23,239       23,239       23,239  
Cash value of life insurance     30,871       30,685       30,488       30,294       30,103  
Mortgage servicing rights     14,965       14,868       14,357       14,548       14,191  
Other assets     12,048       12,649       8,916       12,815       13,869  
Total assets   $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
LIABILITIES AND SHAREHOLDERS’ EQUITY                              
Deposits                              
Non interest bearing demand   $ 240,446     $ 232,155     $ 222,425     $ 208,244     $ 219,395  
Interest bearing demand     208,583       201,085       202,097       190,857       169,171  
Savings     285,902       237,987       241,761       231,855       244,157  
Money market     257,013       222,161       228,182       225,650       221,362  
Time deposits     279,276       259,217       265,068       258,582       258,257  
Total deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
                                         
Short-term borrowings     11,058       10,585       15,240       15,178       12,916  
Federal Home Loan Bank advances     35,000       35,000       35,000       35,000       35,000  
Trust preferred securities     10,310       10,310       10,310       10,310       10,310  
Subordinated debt net of issuance costs     19,702       19,690       19,678       19,666       19,654  
Interest payable     2,634       2,351       3,374       2,944       2,772  
Other liabilities     19,552       21,468       17,973       18,421       19,295  
Total liabilities     1,369,476       1,252,009       1,261,108       1,216,707       1,212,289  
                                         
Shareholders’ Equity                                        
Common stock     61,319       61,319       61,319       61,319       61,319  
Additional paid-in capital     14,955       15,194       15,090       15,195       14,978  
Retained earnings     117,397       116,186       113,515       112,104       109,938  
Accumulated other comprehensive loss     (26,872 )     (30,234 )     (24,870 )     (31,801 )     (31,547 )
Treasury stock     (35,273 )     (34,957 )     (32,213 )     (31,338 )     (30,965 )
Total shareholders’ equity     131,526       127,508       132,841       125,479       123,723  
                                         
Total liabilities and shareholders’ equity   $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  

 

6


 

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   2025     2024     2024     2024     2024  
Loans                              
Taxable   $ 15,244     $ 14,920     $ 14,513     $ 13,883     $ 13,547  
Tax exempt     115       122       127       124       123  
Securities                                        
Taxable     1,169       1,178       1,192       1,226        1,274  
Tax exempt     38       35       37       37       37  
Other interest income     806       592       679       384       319  
Total interest income     17,372       16,847       16,548       15,654       15,300  
                                         
Interest expense                                        
Deposits     5,352       5,169       5,568       5,208       5,090  
Repurchase agreements & other     24       41       43       36       34  
Federal Home Loan Bank advances     362       369       369       370       613  
Trust preferred securities     160       177       187       187       188  
Subordinated debt     195       194       195       194       195  
Total interest expense     6,093       5,950       6,362       5,995       6,120  
                                         
Net interest income     11,279       10,897       10,186       9,659       9,180  
                                         
Provision for credit losses     387       (76 )     200       -       -  
                                         
Net interest income after provision for loan losses     10,892       10,973       9,986       9,659       9,180  
                                         
Noninterest income                                        
Wealth management fees     864       916       882       848       865  
Customer service fees     879       842       870       875       880  
Gain on sale of mtg. loans & OMSR     849       1,196       1,311       1,277       781  
Mortgage loan servicing fees, net     611       816       39       565       763  
Gain on sale of non-mortgage loans     15       10       20       105       10  
Title insurance revenue     397       478       485       406       266  
Net gain on sales of securities     -       -       -       -       -  
Gain (loss) on sale of assets     -       -       200       -       -  
Other     492       299       316       310       386  
Total noninterest income     4,107       4,557       4,123       4,386       3,951  
                                         
Noninterest expense                                        
Salaries and employee benefits     6,237       6,185       6,057       6,009       5,352  
Net occupancy expense     893       702       706       707       769  
Equipment expense     1,072       1,127       1,069       1,060       1,077  
Data processing fees     1,439       821       758       727       769  
Professional fees     1,034       895       659       615       758  
Marketing expense     165       207       241       176       197  
Telephone and communication expense     139       136       128       156       105  
Postage and delivery expense     137       116       145       89       97  
State, local and other taxes     224       224       208       230       245  
Employee expense     174       168       228       159       178  
Other expenses     896       422       804       743       735  
Total noninterest expense     12,410       11,003       11,003       10,671       10,282  
                                         
Income before income tax expense     2,589       4,527       3,106       3,374       2,849  
Income tax expense     431       892       752       261       481  
                                         
Net income   $ 2,158     $ 3,635     $ 2,354     $ 3,113     $ 2,368  
                                         
Common share data:                                        
Basic earnings per common share   $ 0.33     $ 0.55     $ 0.35     $ 0.47     $ 0.35  
Diluted earnings per common share   $ 0.33     $ 0.55     $ 0.35     $ 0.47     $ 0.35  
                                         
Average shares outstanding (in thousands):                                        
Basic:     6,481       6,575       6,660       6,692       6,715  
Diluted:     6,502       6,599       6,675       6,700       6,723  

7


 

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   2025     2024     2024     2024     2024  
                               
Net interest income   $ 11,279     $ 10,897     $ 10,186     $ 9,659     $ 9,180  
Tax-equivalent adjustment     41       42       44       43       43  
Tax-equivalent net interest income     11,320       10,939       10,230       9,702       9,223  
Provision for credit loss     387       (76 )     200       -       -  
Noninterest income     4,107       4,557       4,123       4,386       3,951  
Total operating revenue     15,386       15,454       14,309       14,045       13,131  
Noninterest expense     12,410       11,003       11,003       10,671       10,282  
Pre-tax pre-provision income     2,976       4,451       3,306       3,374       2,849  
Net income     2,158       3,635       2,354       3,113       2,368  
                                         
PER SHARE INFORMATION:                                        
Basic earnings per share (EPS)     0.33       0.55       0.35       0.47       0.35  
Diluted earnings per share     0.33       0.55       0.35       0.47       0.35  
Common dividends     0.145       0.145       0.140       0.140       0.135  
Book value per common share     20.29       19.64       20.05       18.80       18.46  
Tangible book value per common share (TBV)     15.79       16.00       16.49       15.26       14.93  
Market price per common share     20.82       20.91       20.56       14.00       13.78  
Market price to TBV     131.8 %     130.7 %     124.7 %     91.8 %     92.3 %
Market price to trailing 12 month EPS     12.2       12.1       11.8       7.9       7.9  
                                         
PERFORMANCE RATIOS:                                        
Return on average assets (ROAA)     0.60 %     1.04 %     0.68 %     0.93 %     0.71 %
Pre-tax pre-provision ROAA     0.83 %     1.28 %     0.96 %     1.01 %     0.86 %
Return on average equity (ROE)     6.63 %     11.13 %     7.32 %     10.16 %     7.72 %
Return on average tangible equity     8.32 %     13.58 %     8.97 %     12.59 %     9.55 %
Efficiency ratio     80.00 %     71.09 %     76.78 %     75.86 %     78.17 %
Earning asset yield     5.23 %     5.18 %     5.16 %     5.02 %     4.97 %
Cost of interest bearing liabilities     2.32 %     2.36 %     2.53 %     2.47 %     2.55 %
Net interest margin     3.40 %     3.35 %     3.17 %     3.10 %     2.99 %
Tax equivalent effect     0.01 %     0.01 %     0.02 %     0.01 %     0.01 %
Net interest margin, tax equivalent     3.41 %     3.36 %     3.19 %     3.11 %     3.00 %
Non interest income/Average assets     1.14 %     1.31 %     1.20 %     1.31 %     1.19 %
Non interest expense/Average assets     3.45 %     3.15 %     3.20 %     3.18 %     3.08 %
Net noninterest expense/Average assets     -2.31 %     -1.85 %     -2.00 %     -1.87 %     -1.90 %
                                         
ASSET QUALITY RATIOS:                                        
Gross charge-offs     87       195       29       -       66  
Recoveries     2       13       2       16       9  
Net charge-offs     85       182       27       (16 )     57  
Nonperforming loans/Total loans     0.56 %     0.53 %     0.54 %     0.47 %     0.25 %
Nonperforming assets/Loans & OREO     0.56 %     0.53 %     0.54 %     0.52 %     0.30 %
Nonperforming assets/Total assets     0.41 %     0.40 %     0.40 %     0.39 %     0.22 %
Allowance for credit loss/Nonperforming loans     254.35 %     273.68 %     276.83 %     329.78 %     642.69 %
Allowance for credit loss/Total loans     1.41 %     1.44 %     1.48 %     1.55 %     1.58 %
Net loan charge-offs/Average loans (ann.)     0.03 %     0.07 %     0.01 %     (0.01 )%     0.02 %
                                         
CAPITAL & LIQUIDITY RATIOS:                                        
Loans/ Deposits     85.61 %     90.81 %     88.82 %     90.15 %     89.14 %
Equity/ Assets     8.76 %     9.24 %     9.53 %     9.35 %     9.26 %
Tangible equity/Tangible assets     6.96 %     7.66 %     7.97 %     7.72 %     7.63 %
Common equity tier 1 ratio (Bank)     12.35 %     13.43 %     13.19 %     13.98 %     13.84 %
                                         
END OF PERIOD BALANCES                                        
Total assets     1,501,002       1,379,517       1,393,949       1,342,186       1,336,012  
Total loans     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
Deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
Shareholders equity     131,526       127,508       132,841       125,479       123,723  
Goodwill and intangibles     29,125       23,597       23,613       23,630       23,646  
Tangible equity     102,401       103,911       109,228       101,849       100,077  
Mortgage servicing portfolio     1,432,184       1,427,318       1,406,273       1,389,805       1,371,713  
Wealth/Brokerage assets under care     519,158       547,697       557,724       525,713       525,517  
Total assets under care     3,452,344       3,354,532       3,357,946       3,257,704       3,233,242  
Full-time equivalent employees     262       252       248       249       245  
Period end common shares outstanding     6,483       6,494       6,624       6,676       6,702  
Market capitalization (all)     134,982       135,780       136,189       93,458       92,359  
                                         
AVERAGE BALANCES                                        
Total assets     1,459,896       1,395,473       1,376,849       1,342,847       1,333,236  
Total earning assets     1,346,354       1,301,872       1,283,407       1,246,099       1,230,736  
Total loans     1,076,328       1,040,580       1,018,262       1,005,018       993,310  
Deposits     1,227,449       1,163,531       1,145,964       1,120,367       1,091,803  
Shareholders equity     131,944       130,647       128,608       122,510       123,058  
Goodwill and intangibles     26,714       23,605       23,621       23,638       23,654  
Tangible equity     105,230       107,042       104,987       98,872       99,404  
Average basic shares outstanding     6,481       6,575       6,660       6,692       6,715  
Average diluted shares outstanding     6,502       6,599       6,675       6,700       6,723  

 

8


 

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

  

For the Three Months Ended Mar. 31, 2025 and 2024  
($ in thousands)   Three Months Ended Mar. 31, 2025     Three Months Ended Mar. 31, 2024  
    Average           Average     Average           Average  
Assets   Balance     Interest     Rate     Balance     Interest     Rate  
Taxable securities   $ 196,880     $ 1,276       2.63 %   $ 210,252     $ 1,413       2.70 %
Overnight Cash     66,460       699       4.27 %     20,729       180       3.48 %
Nontaxable securities     6,686       38       2.30 %     6,445       37       2.30 %
Loans, net     1,076,328       15,359       5.79 %     993,310       13,670       5.52 %
Total earning assets     1,346,354       17,372       5.23 %     1,230,736       15,300       4.99 %
                                                 
Cash and due from banks     10,339                       4,512                  
Allowance for loan losses     (15,238 )                     (15,830 )                
Premises and equipment     21,082                       21,281                  
Other assets     97,359                       92,537                  
Total assets   $ 1,459,896                     $ 1,333,236                  
                                                 
Liabilities                                                
Savings, MMDA and interest bearing demand   $ 709,324     $ 2,959       1.69 %   $ 605,243     $ 2,525       1.67 %
Time deposits     276,253       2,393       3.51 %     258,592       2,565       3.98 %
Repurchase agreements & other     13,106       24       0.74 %     15,993       34       0.85 %
Advances from Federal Home Loan Bank     35,044       362       4.19 %     51,030       613       4.82 %
Trust preferred securities     10,310       160       6.29 %     10,310       188       7.31 %
Subordinated debt     19,694       195       4.02 %     19,646       195       3.98 %
Total interest bearing liabilities     1,063,731       6,093       2.32 %     960,814       6,120       2.55 %
                                                 
Non interest bearing demand     241,872       -               227,968       -          
Total funding     1,305,603               1.89 %     1,188,782               2.06 %
Other liabilities     22,349                       21,396                  
Total liabilities     1,327,952                       1,210,178                  
                                                 
Equity     131,944                       123,058                  
Total liabilities and equity   $ 1,459,896                     $ 1,333,236                  
                                                 
Net interest income           $ 11,279                     $ 9,180          
                                                 
Net interest income as a percent of average interest-earning assets - GAAP measure                     3.40 %                     2.99 %
                                                 
Net interest income as a percent of average interest-earning assets - non GAAP - Computed on a fully tax equivalent (FTE) basis                     3.41 %                     3.00 %

 

9


 

Non-GAAP reconciliation

 

    Three Months Ended  
($ in thousands, except per share & ratios)   Mar. 31, 2025     Mar. 31, 2024  
             
Total Operating Revenue   $ 15,386     $ 13,131  
Adjustment to (deduct)/add OMSR recapture/impairment *     (11 )     (181 )
Adjusted Total Operating Revenue     15,375       12,950  
                 
Total Operating Expense   $ 12,410     $ 10,282  
Adjustment for merger expenses     (726 )     -  
Adjusted Total Operating Expense     11,684       10,282  
                 
Income before Income Taxes     2,589       2,849  
Adjustment for OMSR*/Merger Expenses     715       (181 )
Adjusted Income before Income Taxes     3,304       2,668  
                 
Provision for Income Taxes     431       481  
Adjustment for OMSR/Merger Expenses **     150       (38 )
Adjusted Provision for Income Taxes     581       443  
                 
Net Income     2,158       2,368  
Adjustment for OMSR*/Merger Expenses     565       (143 )
Adjusted Net Income     2,723       2,225  
                 
Diluted Earnings per Share     0.33       0.35  
Adjustment for OMSR*/Merger Expenses     0.09       (0.02 )
Adjusted Diluted Earnings per Share   $ 0.42     $ 0.33  
                 
Return on Average Assets     0.60 %     0.71 %
Adjustment for OMSR*/Merger Expenses     0.15 %     -0.04 %
Adjusted Return on Average Assets     0.75 %     0.67 %

  

* valuation adjustment to the Company’s mortgage servicing rights

 

** tax effect is calculated using a 21% statutory federal corporate income tax rate

 

 

11