SBFG

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a diversified revenue model and strong execution in organic loan growth, which has now seen nine consecutive quarters of sequential expansion. The company is successfully capitalizing on regional market disruption from larger players, capturing $130 million in cumulative balances toward a $500 million long-term goal. Management made a deliberate strategic decision to keep mortgage processing infrastructure intact during low-volume cycles to ensure capacity for future market capture without adding incremental overhead. Operational stability was bolstered by the 18-month milestone of the Marblehead transaction, which has become a significant contributor to the firm's funding base in Northern Ohio. Asset quality remains a core competitive advantage, with nonperforming assets declining to 0.27% of total assets due to proactive management and rigorous internal reviews. The agricultural sector has become a strategic focus, with balances growing by over $20 million year-over-year as the firm tracks toward a $100 million portfolio goal. Management expects loan growth to accelerate in the second half of 2026, with a projected balance sheet increase of $50 million to $70 million. Net interest margin is anticipated to stabilize or slightly improve, with a target range of 3.45% to 3.55% as excess liquidity is deployed into higher-yielding loans. The company anticipates losing approximately $40 million in wholesale deposits in Q3 2026 but expects this to be non-material due to high existing liquidity and retail growth. Mortgage volume expectations remain sensitive to interest rates, with management noting that rates below 6% are likely required to unlock significant refinance and purchase activity. Expense run rates are projected to trend slightly higher to the $12.3 million to $12.4 million range in Q3 due to performance-based incentives and new hires. The efficiency ratio improved to 67.3%, supported by lower data processing fees as one-time merger integration costs cleared the run rate. Commercial real estate exposure is diversified, with office space specifically representing less than 5.5% of the total loan portfolio. The company adjusted its share buyback posture to be more conservative as the market price reached 1.4x tangible book value, prioritizing capital flexibility. A long-standing credit problem was addressed during the quarter; it was fully allocated in the model and is moving toward resolution with minimal earnings impact. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the margin to move higher from current levels as $70 million in excess liquidity is used to fund a strengthening loan pipeline. The shift from 90% Columbus-based growth to a 50/50 split with legacy markets is expected to improve the funding mix by bringing in more low-cost transactional accounts. Management confirmed the current infrastructure can handle $400 million to $500 million in volume without adding staff, providing significant operating leverage when rates drop. New MLO hires in Cincinnati and Columbus are expected to drive volume even if market rates remain stuck near 6.875%. Despite a projected $40 million wholesale deposit exit, management is bullish on deposit growth due to outsized success in De Novo markets like Angola and Napoleon. Disruption from a $28 billion regional competitor continues to provide a steady stream of new commercial and retail relationship opportunities.

This article first appeared on GuruFocus. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SB Financial Group Inc (NASDAQ:SBFG) reported a net income of $4.5 million with diluted earnings per share of $0.72, marking a significant increase from $0.60 in the prior year quarter. The company achieved its 62nd consecutive quarter of operational profitability, demonstrating consistent financial performance. Loan balances increased by approximately $95 million or 8.7% from the prior year quarter, extending the trend of sequential loan growth to nine consecutive quarters. Total deposits climbed to $1.39 billion, an increase of 11% from the prior year quarter, showcasing strong deposit growth. Asset quality remains a competitive advantage with total nonperforming assets declining to 0.27% of total assets, a reduction of over 28% compared to the prior year. Mortgage originations for the quarter, although rebounding from the first quarter, were down compared to the prior year period, reflecting challenges in the mortgage market. The company's net interest margin slightly decreased to 3.43% from the previous quarter, indicating pressure on interest income. Operating expenses increased to $12.1 million, up 2.4% from the prior year, reflecting higher costs associated with adding new lenders. The company anticipates losing about $40 million in wholesale deposits in the upcoming quarter, which could impact liquidity. Despite strong loan growth, the linked-quarter loan growth was below expectations, indicating potential challenges in maintaining growth momentum. Warning! GuruFocus has detected 6 Warning Sign with SBFG. Is SBFG fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the margin outlook and how you see it evolving in the coming quarters? A: Tony Cosentino, CFO: We anticipated that the margin percentage peaked in Q1 and would stabilize or decrease slightly. However, due to liquidity and deposit growth at favorable pricing, we expect margins to remain stable or slightly increase. We foresee loan growth in the second half of the year, which should support margins. The average cost of deposits remains favorable, which is a positive factor for margins. Q: How do you view deposit growth and its sustainability moving forward? A: Mark Klein, CEO: We are optimistic about deposit growth, especially in our new markets like Angola and Napoleon. Despite potential losses of some wholesale deposits, we expect to continue growing deposits by leveraging market disruptions and capturing low-cost deposits. We anticipate a 3-5% growth per quarter in deposits. Q: What is the outlook for loan growth in the second half of the year? A: Tony Cosentino, CFO: We expect a balance sheet increase of $50 to $70 million in loans by year-end, with about 50% of growth from Columbus and the rest from other markets. This represents a more balanced geographic spread compared to previous years. Q: Can you discuss the mortgage outlook given the current rate environment? A: Mark Klein, CEO: The high rate environment presents challenges, but we have hired high-producing MLOs and are optimistic about reaching near $300 million in mortgage originations. However, achieving this target will be challenging unless rates decrease. We are prepared to handle increased volume without adding significant overhead. Q: How do you expect expenses to trend in the second half of the year? A: Tony Cosentino, CFO: Expenses are expected to trend higher than Q2 due to filling open positions and increased compensation linked to company performance. We anticipate expenses in the range of $12.3 to $12.4 million in Q3, with a slight decrease in Q4 as mortgage volume declines. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in SB Financial Group, Inc.? Here are five stocks we like better. SB Financial Group reported second-quarter net income of $4.5 million, or $0.72 per diluted share, up from $0.60 a year ago, driven by higher net interest income and fee revenue. The company also marked its 62nd consecutive quarter of operational profitability. Loan and deposit growth remained strong, with loans up 8.7% year over year to about $1.19 billion and deposits up more than 11% to $1.39 billion. Management said it expects stronger loan production in the second half and sees margins staying near current levels. Asset quality stayed solid, with nonperforming assets falling to 0.27% of total assets and charge-offs remaining low. The bank also continued rewarding shareholders, declaring a $0.16 quarterly dividend and staying on pace for its 14th straight annual dividend increase. SB Financial Group (NASDAQ:SBFG) reported second-quarter 2026 net income of $4.5 million, or $0.72 per diluted share, compared with $0.60 per diluted share a year earlier, as higher net interest income and fee revenue supported profitability. Chairman, President and CEO Mark Klein said the company’s results reflected loan and deposit growth, controlled expenses and continued improvement in asset quality. The company said it has now recorded 62 consecutive quarters of operational profitability. Tangible book value per share rose about 16% from a year earlier to $19.04, while adjusted tangible book value excluding accumulated other comprehensive income was $22.57. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Total operating revenue increased 4.5% year over year to $17.9 million and rose 3% from the prior quarter, according to Chief Financial Officer Tony Cosentino. Net interest income increased 6.8% to $13 million from $12.1 million in the second quarter of 2025, as interest income growth outpaced higher interest expense. Net interest margin was 3.43%, compared with 3.48% in both the prior-year and linked quarters. Cosentino said the decline partly reflected elevated liquidity during the period, but management expects loan growth and low-cost deposit gathering to support margins in the second half. He said the company expects margin to remain at or above current levels and potentially trend toward a range of roughly 3.45% to 3.55%. → GE Vernova Just Sent a Mixed AI Signal to Investors Non-interest income totaled $5 million, representing approximately 28% of operating revenue. Mortgage banking contributed $1.9 million, down from $2.2 million a year earlier but up from $1.8 million in the first quarter. Mortgage servicing fees were $934,000, while mortgage gain-on-sale revenue was $1.5 million. The company said its mortgage gain-on-sale percentage improved to 2.19%, its highest level since the second quarter of 2024. Adjusted diluted earnings per share, excluding mortgage servicing rights valuation adjustments, rose nearly 26% to $0.73 from $0.58 a year earlier, Cosentino said. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Loans ended the quarter at approximately $1.19 billion, up about $95 million, or 8.7%, from a year earlier and $8.4 million from the first quarter. The company said this marked its ninth consecutive quarter of sequential loan growth. Commercial real estate loans totaled $611 million, while office exposure accounted for less than 5.5% of the loan portfolio. During the question-and-answer session, management said it expects stronger loan production in the second half of the year. Cosentino said the company could generate approximately $50 million to $70 million of balance-sheet loan growth through year-end before normal repayments, with roughly half expected from Columbus and half from other markets. Total deposits rose $141 million, or more than 11%, from a year earlier to $1.39 billion, including a $19.3 million sequential increase. Noninterest-bearing checking balances increased $17.3 million year over year to nearly $260 million. Klein said the company has captured $130 million in cumulative deposits from regional banking-market disruption as it works toward a longer-term target of $500 million. Management also highlighted its de novo markets in Angola, Indiana, and Napoleon, Ohio. The two offices recorded $19.3 million in loans and $22.5 million in deposits during the first quarter, according to Klein. Cosentino said the company expects a large institutional deposit relationship of roughly $40 million to move to the wholesale market later in 2026, but said the anticipated loss should not be material to earnings and could be covered by current excess liquidity and retail deposit growth. Mortgage originations increased 21% sequentially to $79.3 million but remained below the $97.9 million reported a year ago. Purchase and construction activity represented 81% of mortgage volume. Klein said mortgage rates above 6% have constrained refinancing activity, although the residential pipeline has stabilized in a range of $25 million to $30 million. The company sold 88.5% of mortgage production during the quarter and ended with a mortgage servicing portfolio of $1.5 billion. Klein said SB Financial has maintained its mortgage processing infrastructure and could handle substantially higher production without adding significant overhead. He also cited growth in Cincinnati, where mortgage volume totaled nearly $20 million in the first half, more than 50% above the comparable 2025 period. Peak Title generated $577,000 in revenue, up nearly 20% sequentially and flat from a year earlier. Wealth management fees increased to $955,000, while assets under management approached $557 million. Klein said the company’s relationship with Advisory Health is now operational and is intended to broaden investment offerings for clients. Non-interest expense totaled $12.1 million, up 2.4% from a year earlier, primarily reflecting lender hires and $7 million in salaries and benefits. Lower data-processing costs partially offset those increases. The efficiency ratio improved to 67.3%, while pre-tax, pre-provision income rose 9% year over year to $5.8 million. Nonperforming assets declined to $4.4 million, or 0.27% of total assets, from $6.2 million a year earlier. The allowance for credit losses was $16.4 million, or 1.38% of loans, and covered nonperforming loans by 470%. Gross delinquencies were below 35 basis points, while net charge-offs were six basis points during the quarter. Total shareholders’ equity increased 9.8% from a year earlier to nearly $147 million. The company repurchased more than 28,000 shares at an average price of $22.06, though Cosentino said buybacks have been moderated in 2026 to preserve capital flexibility. SB Financial declared a quarterly dividend of $0.16 per share payable in August. Klein said the payout ratio was approximately 22% and that the company remains on track for its 14th consecutive year of annual dividend increases. SB Financial Group, Inc (NASDAQ: SBFG) is the bank holding company for Star Financial Bank, a full-service community bank headquartered in Fort Wayne, Indiana. Through its wholly owned subsidiary, the company offers a broad portfolio of commercial and consumer banking products, including deposit accounts, lending solutions, mortgage origination and servicing, and cash management services. In its commercial banking division, SB Financial Group provides working capital loans, equipment financing, commercial real estate lending and treasury management solutions designed for small- and mid-sized businesses. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SB Financial Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

SB Financial Group, Inc. (SBFG) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.80%. A quarter ago, it was expected that this company would post earnings of $0.6 per share when it actually produced earnings of $0.63, delivering a surprise of +5%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. SB Financial Group, which belongs to the Zacks Banks - Northeast industry, posted revenues of $17.94 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.23%. This compares to year-ago revenues of $17.18 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SB Financial Group shares have added about 18.3% since the beginning of the year versus the S&P 500's gain of 9.6%. While SB Financial Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SB Financial Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.60 on $17.5 million in revenues for the coming quarter and $2.53 on $69.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. NBT Bancorp (NBTB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 27. This financial holding company is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +15.9%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. NBT Bancorp's revenues are expected to be $187.52 million, up 9.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SB Financial Group, Inc. (SBFG) : Free Stock Analysis Report NBT Bancorp Inc. (NBTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DEFIANCE, Ohio, July 23, 2026 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the quarter ended June 30, 2026. Second Quarter 2026 Highlights compared to the second quarter of the prior year include: Net Income, GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.5 million, or $0.72 per DEPS, an improvement from the $3.9 million, or $0.60 per DEPS in the prior-year quarter. Net income, adjusted for Originated Mortgage Servicing Rights (“OMSR”) and merger costs, was $4.5 million, up 21.8 percent compared to $3.7 million for the prior-year period. Adjusted DEPS of $0.73 was also up 25.9 percent from the adjusted prior-year. Total loans reached $1.19 billion, reflecting an increase of $94.8 million, or 8.7 percent, from the prior-year quarter and an improvement of $8.4 million, or 0.71 percent, from the linked quarter. This performance marks SBFG's ninth consecutive quarter of expansion in our loan portfolio. Total deposits climbed to $1.39 billion, increasing by $141.3 million, or 11.3 percent, from the prior-year quarter, and up $19.3 million, or 1.4 percent, from the linked quarter. Tangible book value (“TBV”) per common share finished the quarter at $19.04, climbing $2.60 per share, or 15.8 percent, from $16.44 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $22.57 at quarter end. Six months ended June 30, 2026 Highlights compared to the same period of the prior-year: GAAP net income increased to $8.8 million, a 46.3 percent expansion compared to the $6.0 million reported for the previous six months, and diluted EPS was $1.41, an improvement of 51.6 percent from $0.93. Net interest income rose to $25.7 million, representing a 9.7 percent improvement from the $23.4 million reported in the prior-year period. Noninterest income increased by 5.9 percent to $9.7 million compared to $9.2 million reported in the previous six months. Noninterest expense remained well controlled, decreasing by 0.8 percent to $24.1 million from $24.3 million in the prior-year period. “Net income for the second quarter of 2026 was $4.5 million, a 16.7 percent increase from the prior-year quarter, with GAAP DEPS of $0.72, an improvement of 20.0 percent from the prior-year quarter,” said Mark A. Klein, Chairman, President, and Chief Executive Officer. “This marks our 62nd consecutive quarter of profitability and reflects the continued benefits of not only our expanded balance sheet scale, but also the sustained, robust performance of our diversified community banking and fee-based business lines.” RESULTS OF OPERATIONS In the second quarter of 2026, total operating revenue increased to $17.9 million, 4.5 percent improvement from $17.2 million in the prior-year quarter and 3.0 percent from $17.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income, which was partially offset by a modest reduction in noninterest income due to lower net mortgage servicing fees. Net interest income for the quarter totaled $13.0 million, compared with $12.1 million in the prior-year period and $12.7 million in the linked quarter. The year-over-year expansion was driven by a rise in interest income on loans, which climbed to $17.5 million. Total interest expense increased to $6.9 million, up 8.3 percent from $6.3 million in the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin decreased approximately 5 basis points from 3.48 percent in the prior-year quarter to 3.43 percent. Total loans increased $94.8 million from the prior-year quarter and $8.4 million from the linked quarter. Total deposits at quarter end increased $141.3 million, or 11.3 percent, to $1.39 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across the Company’s markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of a diversified revenue business model. Mortgage Loan Business Net mortgage banking revenue for the quarter reached $1.9 million, a decrease of $236,000 from the prior-year quarter. Loan servicing fees added $934,000 to revenue, reflecting an increase of $30,000 from the prior-year quarter. The OMSR net valuation adjustment for the second quarter of 2026 was a negative $54,000, compared with a recapture of $159,000 in the second quarter of 2025. Noninterest Income and Noninterest Expense “Noninterest income for the second quarter of 2026 reached $5.0 million, proving highly resilient compared to the prior-year base of $5.0 million,” Mr. Klein noted. “Our wealth management fees improved to $955,000, from $859,000 a year ago, while title insurance contributed $577,000 to total revenue, illustrating the strength of our team's cross-functional internal referral strategies.” Noninterest expense for the second quarter of 2026 rose 2.4 percent to $12.1 million from $11.9 million in the prior-year quarter, predominantly driven by an increase of $410,000 in salaries and employee benefits, which totaled $7.0 million, to support revenue-producing lenders. This increase was heavily mitigated by lower data-processing expenses, which decreased to $693,000 from $888,000 in the prior-year quarter as previous merger-related and systems-integration costs fully wound down. “Our core efficiency ratio for the second quarter of 2026 improved to 67.32 percent, compared to 68.90 percent in the second quarter of 2025 and 68.12 percent in the linked quarter,” stated Mr. Klein. “This positive operating leverage reflects our disciplined approach to managing overhead while proactively funding expansion in our growth markets.” Balance Sheet As of June 30, 2026, SB Financial reported total assets of $1.62 billion, representing an increase of $74.7 million from December 31, 2025, and $133.8 million, or 9.0 percent, from June 30, 2025. The year-over-year asset growth was primarily driven by steady organic loan generation across commercial and agricultural lines. Cash and due from banks increased by $58.7 million from the prior-year period to $138.2 million, supported by sustained deposit gathering and investment portfolio cash flows. Key balance-sheet metrics for the quarter included a loan-to-deposit ratio of 85.51 percent and a loan-to-asset ratio of 73.43 percent, both of which remained well-aligned with target operating bands. Total deposits at quarter end reached $1.39 billion, an increase of $141.3 million, or 11.3 percent, from the prior-year quarter, driven by strong client retention and expanded commercial deposit relationships. Noninterest-bearing demand deposits totaled $258.6 million, accounting for 18.6 percent of the total deposit portfolio. Shareholders’ equity finished the period at $146.7 million, representing an increase of $13.1 million, or 9.8 percent, from the prior-year period. During the second quarter, SB Financial repurchased approximately 28,000 shares, roughly flat compared to the linked quarter, reflecting a measured approach to capital allocation and ongoing evaluation of market dynamics and corporate priorities during the period. The Company remains committed to a prudent capital allocation strategy, supporting shareholder returns through dividends and share buybacks while preserving the financial flexibility to fund organic expansion, strategic initiatives, and capital stability. “As we enter the second half of 2026, we are operating from a strong fundamental foundation characterized by top-tier capital ratios, exceptional credit quality, and a resilient core deposit franchise,” stated Mr. Klein. “Our consistent organic loan expansion highlights our strong client relationship model and localized lending expertise, while our robust reserve coverage and near-zero delinquency levels reflect our disciplined approach to credit administration. Supported by our diverse fee-generating businesses and careful expense management, we are well-positioned to maintain positive operating leverage and drive long-term value for our shareholders.” Asset Quality As of June 30, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.4 million, representing 0.27 percent of total assets, reflecting a decrease of $1.8 million from $6.2 million (0.41 percent of total assets) in the prior-year quarter. Within total nonperforming assets, nonaccruing loans declined to $3.5 million, while foreclosed properties and other assets stood at $936,000. The allowance for credit losses remained strong at 1.38 percent of total loans, providing coverage of 470.2 percent of nonperforming loans. This reserve level represents an improvement from the prior-year period, reflecting the Company’s disciplined credit risk framework. Annualized net loan charge-offs to average loans remained very low at 6 basis points, compared to 1 basis point in the linked quarter and 2 basis points in the prior-year quarter, with gross charge-offs totaling $196,000. Collectively, these metrics underscore SB Financial's continued focus on disciplined underwriting and effective credit administration. “Our credit results for the second quarter continue to demonstrate excellent stability across the loan portfolio and steady progress in resolving nonperforming assets,” said Mr. Klein. “With nonperforming assets declining compared to the linked quarter and our allowance for credit losses providing coverage of nonperforming loans, our reserve position remains highly conservative. We remain committed to diligent underwriting and proactive risk management to protect the balance sheet as we support measured loan expansion across our markets.” Webcast and Conference Call The Company will hold the second quarter 2026 earnings conference call and webcast on July 24, 2026, at 11:00 a.m. EST. 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 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. 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”. 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 which 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. KleinChairman, President andChief Executive [email protected] Anthony V. CosentinoExecutive Vice President andChief Financial [email protected]

SB Financial reported net income of $4.3 million and diluted EPS of $0.69 for Q1, marking its 61st consecutive profitable quarter; tangible book value per share rose to $18.45 (adjusted excluding AOCI nearly $22), and the board declared a quarterly dividend of $0.16 while repurchasing ~29,000 shares. Total operating revenue increased 13.2% year-over-year to $17.4 million, driven by steady net interest income and improved fee income (notably mortgage servicing and title), while loans and deposits grew and new market entries in Angola and Napoleon, Ohio generated nearly $19 million in loans and $17 million in deposits in five months. Credit metrics were strong with non-performing assets at 0.3% of assets and an allowance for credit losses of 1.39%; management expects deposit growth to moderate, to operate around a ~90% loan-to-deposit ratio, sees potential margin improvement as liquidity eases, and is guiding lower on buybacks due to capital considerations. Interested in SB Financial Group, Inc.? Here are five stocks we like better. SB Financial Group (NASDAQ:SBFG) reported what management described as a “solid start” to fiscal 2026, pointing to steady net interest income, improved fee-based revenue, disciplined expense management, and what it characterized as strong credit performance during its first-quarter earnings call on April 24. Chairman, President and CEO Mark Klein said the quarter “reinforces the consistency and resilience of our operating model,” with performance supported by loan growth, stable net interest income, improved non-interest revenue, and “sound credit quality.” Klein noted the quarter marked the first full anniversary of the Marblehead acquisition, which he said has contributed to the company’s funding base and expanded its presence in Northern Ohio. → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price Klein reported net income of $4.3 million and diluted EPS of $0.69, compared with GAAP diluted EPS of $0.33 in the first quarter of 2025. He said the quarter marked the company’s 61st consecutive quarter of profitability. Tangible book value per share ended the quarter at $18.45, compared with $15.79 a year earlier and $18.00 at year-end, Klein said. He added that adjusted tangible book value per share, excluding AOCI, was “nearly $22.” → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank Chief Financial Officer Tony Cosentino said total operating revenue increased to $17.4 million, up 13.2% from $15.4 million a year earlier and up 6.1% from the linked quarter. Cosentino also discussed adjusted earnings, saying that when both years are adjusted for OMSR recapture and Marblehead merger costs, EPS would be $0.63 for the current period versus $0.42 in the year-ago quarter. Net interest income was $12.7 million, compared with $11.3 million in the first quarter of 2025 and $12.7 million in the linked quarter, Klein said. Cosentino attributed the year-over-year increase primarily to balance sheet growth, portfolio mix, and repricing benefits. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report Net interest margin was 3.49%, compared with 3.41% in the prior-year quarter and 3.52% in the linked quarter, Cosentino said. In response to a question about margin prospects in a stable rate environment, Cosentino said the quarter’s modest sequential decline was “really a function of being very liquid,” noting the company had “a lot of deposit growth” and wasn’t “terribly aggressive on the rate side.” He said he expects liquidity to “wane a little bit” in coming quarters and anticipated the margin could move “up a few basis points” in the second quarter as loan growth resumes. Cosentino also addressed deposit costs, saying he had expected deposit costs to trend higher but that they have “continued to trend a bit lower.” However, he said he still believes competitors may become more aggressive given their focus on loan growth and need for funding. Loan balances ended the quarter at approximately $1.18 billion, Cosentino said, with loans-to-assets at 74%. Klein said loan balances increased by about $92 million from the prior-year quarter and about $500,000 from the linked quarter, extending the company’s trend of sequential quarterly growth. Total deposits were $1.37 billion, up from $1.27 billion a year earlier and $1.3 billion at year-end, Klein said. He described the year-over-year increase as more than $100 million, or nearly 8%, driven by organic deposit growth and stable client relationships. During the Q&A, Klein highlighted momentum in newer markets, particularly Angola, Indiana, and Napoleon, Ohio, which the company entered recently. Klein said these two markets “exceeded our admittedly aggressive goals,” with nearly $19 million in loans and approximately $17 million in deposits in five months of operation. He described Napoleon as benefiting from industry consolidation and local “market disruption,” adding that Angola is nearing profitability. Looking ahead, Klein and Chief Lending Officer Steve Walz discussed continued emphasis on disciplined growth. Walz said the company remains focused on expanding the breadth of its growth story beyond Columbus into other urban markets, consistent with “that high single digits we talked about previously.” Klein added that the company could grow faster but maintains underwriting discipline, saying management is “never going to get enough of yield to compensate for an undue amount of risk.” Cosentino said he expects deposit growth to moderate in the second quarter due to some larger relationships moving out “through normal business cases.” He added that management expects to operate around a 90% loan-to-deposit ratio through the rest of the year and does not believe it needs to be “overly priced” on deposits to do so. Non-interest income improved to $4.7 million, up from $4.1 million a year earlier and $3.7 million in the linked quarter, Klein said. He noted fee income represented 27% of total revenue, “slightly higher than the prior year and well ahead of the linked quarter.” Cosentino said non-interest income increased about 14.7% year over year and 27% from the linked quarter, driven by higher mortgage loan servicing fees, stronger gains on sale of mortgage loans in OMSR, and improved gains on the sale of SBA loans. He said total mortgage banking contribution was $1.8 million, compared with $1.5 million in both the prior-year and linked quarters. He also noted the company’s hedging program “was in the money for the quarter” and helped offset disruption in rate markets. Klein said mortgage originations totaled about $66 million, up from approximately $40 million in the first quarter of 2025 but down from about $72 million in the linked quarter. While he said volume was weaker than anticipated, he noted the pipeline stabilized around $35 million, and management anticipated roughly a 25% sequential increase in volume in the second quarter from the linked quarter. In the Q&A, Cosentino said the company did “just shy of $30 million” in mortgage volume in March and expected “$90 million-ish” in the second quarter, with a similar pace possible in the third quarter if conditions hold. Klein said the company has been adding mortgage loan originators in several markets to support volume and household growth, noting hires in Cincinnati and Indianapolis and additional recruiting efforts. Klein also said Peak Title “continued to perform well,” benefiting from internal referrals and traction with clients outside of the bank. Non-interest expense totaled $11.9 million, Klein said, improving from the prior-year quarter but rising modestly from the linked quarter. Cosentino said operating expenses were down $500,000 year over year, reflecting the absence of one-time merger-related costs in the first quarter of 2025, and up $700,000 sequentially due to “normal quarterly expense variability.” The efficiency ratio was 68.1%, which Cosentino said was a meaningful improvement year over year. On capital deployment, Cosentino said the company repurchased about 29,000 shares at an average price of $21.12. He said the company has guided lower on buybacks for 2026 as prices are at or near adjusted tangible book value and noted the potential call of subordinated debt in June could require a capital outlay. Klein said the company continues to monitor M&A opportunities, but nothing “transformative” was in progress. Klein announced a quarterly dividend of $0.16 per share, which he said equates to an annualized yield of about 2.8% and represents roughly 25% of earnings. Credit quality remained a key theme. Klein said non-performing assets totaled $4.8 million, or 0.3% of total assets, compared with $6.1 million, or 0.41%, in the year-ago quarter. He said delinquencies declined to 28 basis points. Cosentino added that a foreclosure on a large property elevated OREO while reducing non-performing loans by a similar amount, and he said management does not anticipate further write-downs from that relationship. The allowance for credit losses was 1.39% of total loans, and Cosentino said that excluding loans on non-accrual, the delinquency rate was “effectively zero.” Looking ahead, Klein said the company remains focused on executing across its footprint, optimizing lending capacity, driving cross-sell activity for core deposits, and maintaining a balanced approach to risk as it works toward its longer-term goal of scaling the balance sheet toward $2 billion. SB Financial Group, Inc (NASDAQ: SBFG) is the bank holding company for Star Financial Bank, a full-service community bank headquartered in Fort Wayne, Indiana. Through its wholly owned subsidiary, the company offers a broad portfolio of commercial and consumer banking products, including deposit accounts, lending solutions, mortgage origination and servicing, and cash management services. In its commercial banking division, SB Financial Group provides working capital loans, equipment financing, commercial real estate lending and treasury management solutions designed for small- and mid-sized businesses. The article "SB Financial Group Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. April 24, 2026 11 a.m. ET Chairman, President, and Chief Executive Officer — Mark A. Klein Executive Vice President and Chief Financial Officer — Anthony V. Cosentino Executive Vice President and Chief Lending Officer — Steven A. Walz Mark A. Klein: Thank you, Sarah, and good morning, everyone. Welcome to our first quarter 2026 conference call and webcast. First quarter represented a solid start to the year for SB Financial Group, Inc. and really reinforces the consistency and resilience of our operating model. Results reflected balance sheet performance across the franchise, supported by loan growth, stable net interest income, improved fee-based revenue, disciplined expense management, and sound credit quality. This quarter also marked the first full anniversary of the Marblehead acquisition, and we now view that transaction as a solid contributor to our funding base, expanded presence in Northern Ohio, and overall franchise stability. While the operating environment remains competitive, we continue to feel good about our position. The balance sheet remains sound. Our credit metrics continue to compare favorably, and our business line provides a healthy mix of margin and fee-based revenue. We believe that combination, along with our disciplined approach to growth and capital deployment, supports our ability to build long-term shareholder value. Briefly, some highlights for the quarter. Net income was $4.3 million with diluted EPS of $0.90 compared to GAAP diluted EPS of $0.33 for 2025. This now marks our 61st consecutive quarter of profitability. Tangible book value per share ended the quarter at $18.45 compared to $15.79 for 2025 and $18 at year end. Adjusted tangible book value per share, excluding AOCI, now comes in at nearly $22. Our net interest income totaled $12.7 million compared to $113 million in 2025 and $12.7 million in the linked quarter. The year-over-year improvement was driven by higher interest income on loans and a stable funding profile, while the linked-quarter comparison remained relatively consistent. Balances increased by approximately $92 million from the prior-year quarter and approximately $500 thousand from the linked quarter, reflecting continued production across the franchise and extending our trend of sequential quarterly growth. Total deposits in the quarter were $1.37 billion compared to [inaudible] for 2025 and $1.3 billion at year end. On a year-over-year basis, deposits increased $100 million, or nearly 8%, reflecting continued organic deposit growth and stable client relationships across the franchise. Noninterest income improved to $4.7 million from $4.1 million in the first quarter of the year and $3.7 million from the linked quarter. Percentage of fee income to total revenue of 27% was slightly higher than the prior year and well ahead of the linked quarter. Noninterest expense totaled $11.9 million, and improved from the prior-year quarter while increasing modestly from the linked quarter. The prior-year quarter included acquisition-related expenses and incremental operating costs associated with Marblehead, which elevated that comparison period. Asset quality continues to remain a strength of SB Financial Group, Inc.; nonperforming assets totaled $4.8 million, or 0.3% of total assets, compared to $6.1 million, or 0.41%, in the first quarter. While nonperforming assets increased modestly from year end, overall credit performance remained sound, and reserve coverage remained strong. I am especially pleased with the efforts of not only our lenders, but more importantly, our collection team, which drove our total delinquency level down to just 28 basis points at quarter end. As we have revealed in prior quarters, we key on our five strategic initiatives: growing and diversifying revenue; more scale for efficiency; greater share of the client’s wallet for more scope; operational excellence; and, of course, asset quality. Looking a little closer at revenue diversity, mortgage originations totaled approximately $66 million compared to approximately $40 million for 2025, and approximately $72 million in the linked quarter. The mortgage business remains an important part of our franchise, helping us expand household relationships while also contributing meaningful fee income across the company. While volume was weaker than we anticipated in the quarter, the pipeline has stabilized at approximately $35 million, and we anticipate approximately a 25% increase in volume for the second quarter sequentially from the linked quarter. Big title continued to perform well during the quarter, benefiting from both internal referrals and continued traction of clients outside of the bank. This business remains a valuable part of our product set and an important contributor to fee-income diversification. On the scale front, the Marblehead acquisition continues to support our funding profile, and we remain pleased with the stability of those client relationships just one year after closing. Deposit growth continued to provide meaningful support to our balance sheet. We remain pleased with the stability of the Marblehead relationships and, more broadly, continue to see opportunities to grow deposits organically through client-calling efforts, treasury management activities, and the broader relationship model that has served us well across our markets, particularly with the current market disruption and consolidation. As we discussed previously, we committed to two nearby markets recently, Angola, Indiana, and Napoleon, Ohio, and these results have exceeded our admittedly aggressive goals. We have closed nearly $19 million in loans and approximately $17 million in deposits in just five months of operation. These two markets have clearly been at the forefront of the market disruption I just mentioned, and we certainly have seized on that opportunity. Client relationships—more scope—remain focused on serving clients through our relationship-based model that emphasizes responsiveness, local market knowledge, and a full suite of products and services. We continue to believe that approach, combined with our hybrid office model and expanding digital capabilities, positions us well to serve our clients across both legacy and newer urban expansion markets. Referral activity continues to be an important tool in strengthening household relationships across our business lines, and we continue to view that cross-functional approach as an important part of deepening client relationships across the franchise and delivering more scope and a greater share of the client wallet. On operational excellence, we remain focused on matching growth with disciplined execution. The first quarter reflected that mindset with expense levels improving from the prior-year period and remaining controlled relative to revenue. Plus, we continue to evaluate staffing, technology, and physical presence across the franchise to ensure resources are always aligned with current client activity and long-term market opportunities. Capital levels remain strong with improvement in total capital and higher ratios for both TCE and CET1 regulatory capital. And finally, before I turn it over to our CFO, Anthony V. Cosentino, criticized and classified loans coverage remains strong and continues to reflect our conservative approach to risk management. The allowance for credit losses at 1.39% remained strong relative to total loans, with criticized and classified loans at just $4.6 million, down $25 million, or 35%, from the prior year. We continue to emphasize disciplined underwriting, proactive management of problem assets, and prudent growth across all markets. We believe that combination remains one of the key differentiators for SB Financial Group, Inc. and an important metric for our long-term performance. I would like to ask Anthony to give us some more details on our quarterly performance. Anthony? Anthony V. Cosentino: Thanks, Mark, and good morning again, everyone. Let me outline some highlights and important details of our first quarter results. On the income statement, the first-quarter total operating revenue increased to $17.4 million, representing a 13.2% increase from the $15.4 million in the prior-year period and a 6.1% increase from the linked quarter. As Mark noted, this quarter reflected a balanced revenue performance with stable net interest income and a stronger contribution from our fee-based businesses. Mark also detailed our GAAP EPS earlier in the call, and when we adjust both years for OMSR recapture and the Marblehead merger costs, EPS would be $0.63 for the current period compared to $0.42 in 2025, up over 50% on an adjusted basis. Net interest income was up $1.4 million, or 12.7%, from 2025 and consistent with the linked quarter. The year-over-year increase was driven primarily by continued balance sheet growth, better mix, and the repricing benefits within the portfolio. Total interest expense increased modestly from the prior-year quarter as higher volume-driven deposit costs were partially offset by lower costs across other funding sources. While funding costs remain an important point of focus, the overall funding profile of the company remains well aligned with the asset growth we have achieved over the last year. Net interest margin for the quarter was 3.49% compared to 3.41% in the prior-year quarter and 3.52% in the linked quarter. Even with net interest income remaining flat sequentially, the company continued to benefit from the larger balance sheet and the repricing of interest-earning assets. Noninterest income increased to $4.7 million; on a percentage basis, that represents an increase of approximately 14.7% from the prior-year period and 27% from the linked quarter. The quarter-over-quarter and year-over-year improvement was driven by higher mortgage loan servicing fees, stronger gains on sale of mortgage loans and OMSR, and improved gains on the sale of SBA loans. The total mortgage banking contribution for the quarter was $1.8 million compared to $1.5 million in the prior-year quarter and $1.5 million in the linked quarter. We continue to utilize our hedging program, which was in the money for the quarter, as it successfully offset the disruption in the rate markets. Operating expenses totaled $11.9 million in the quarter, down $500 thousand from the prior year and up just $700 thousand from the linked quarter. The year-over-year comparison benefited from the one-time merger-related costs that were present in 2025. The linked-quarter increase was modest and reflects normal quarterly expense variability. Our efficiency ratio for the first quarter was 68.1%, representing a meaningful improvement from the prior-year period and continued stability on a sequential basis. Our adjusted efficiency ratio was down by over 500 basis points from the prior period and the adjusted operating leverage was a positive five times. Turning to the balance sheet. Loan balances ended the quarter at approximately $1.18 billion, reflecting continued year-over-year growth and a modest increase from year end, with loans-to-assets at a healthy 74%. We remain encouraged by the continued stability in production across the franchise, and we believe the current balance sheet remains well positioned to support additional disciplined loan growth during the year. Our loan-to-deposit ratio at quarter end was 86%. Although we continue to view the low to mid-90s as a reasonable long-term operating range, the current funding profile gives us flexibility to support loan growth while maintaining strong liquidity and a balanced risk posture. On capital management, during the quarter, the company repurchased approximately 29 thousand shares at an average price of $21.12. We have guided lower on the payback on the buyback for 2026 as prices are at or near our adjusted tangible book value. We are also cognizant of the impending potential call of our sub debt that would require a capital outlay, potentially impacting an aggressive buyback posture moving forward. Turning lastly to asset quality. While nonperforming assets totaled $4.8 million and were relatively unchanged compared to the linked quarter, we did foreclose on a large property that elevated OREO with a like-size reduction in NPLs. We feel confident in our collateral position and do not anticipate further write-downs from this relationship. The allowance for credit losses as a percentage of total loans is 1.39% compared to 1.36% in the linked quarter and 1.41% in the prior year. Coverage of nonperforming loans was higher than both the linked and prior-year quarters, underscoring the continued strength of the company’s reserve position and disciplined approach to credit risk management. Total delinquencies were also down substantially for both the linked and prior year, and when we exclude loans on nonaccrual, the delinquency rate is effectively zero. I will now turn the call back over to Mark. Mark A. Klein: Thank you, Anthony. We certainly remain encouraged by our positioning as we move through 2026, supported by strong credit fundamentals, a growing balance sheet, and continued discipline in expense control and capital management. We are focused on executing across all of our footprint, optimizing our lenders and lending capacity, and driving cross-sell activity to support core deposit growth while maintaining a balanced approach to risk. We will be announcing a quarterly dividend of $0.16 per share, equating to an annualized yield of approximately 2.8%, representing 25% of our earnings. We continue to believe the current environment presents attractive opportunities to build on our growth trends. Our capital levels provide flexibility. Our collective experience provides a clear path to a broader footprint. And our continued focus on improvement supports our long-term objective of scaling our franchise toward our $2 billion strategic goal of a balance sheet. We will now open the call for questions. Operator: Thank you. To ask a question, you may press star then 1 on your touchtone phone. To withdraw your question, press star then 2. The first question will come from Brian Joseph Martin with Breen Capital. Please go ahead. Brian Joseph Martin: Hey, good morning, guys. Just maybe a couple things here. You talked a little bit on the call about the success you have had in the newer markets, Mark, that you mentioned. When you look at loan growth and the deposit growth going forward and the benefits from these new markets, can you frame up your outlook on loan growth here? Is there more to come from those new markets, or was that the low-hanging fruit and there is still more upside? Just frame up your outlook on loan growth and the pipeline here. Mark A. Klein: Sure. As I am sure you know, Brian, Angola was a mortgage production office originally, and when COVID hit, we left it a mortgage production office with some wealth management business. Recently, we knew there were opportunities in Angola to develop it into a full-service office, and it has been really good. We have a great staff and certainly a lot of opportunity. We used to spend some time up in that market, but when COVID hit, we pulled back. Angola is doing well, and we are right on the verge of having black numbers coming out of that with a positive P&L. Napoleon was specifically a result of the disruption in the market from consolidation and mergers. That has great potential. As I have mentioned before on prior webcasts, there is probably $1 billion in that market that has now become deposits of larger regional banks, whereas before they were deposits of smaller community banks. We feel there is a great opportunity to continue to lever that. We have a great staff, and that will provide not only lending growth but also nice deposit opportunities in a market that is longing for a community bank. Lastly, we have been in Gahanna for a period of time, generally as a mortgage loan production office, and most likely by the end of the year, we will be having more conversations about opening that as a full-service office in Columbus, because we know there are opportunities there with just the one officer we have in Dublin. That is an update on those offices in terms of opportunities for de novo expansion. Brian Joseph Martin: Okay. And as far as the pipeline and what you are expecting in the coming quarters? Mark A. Klein: Yes. Steven can speak to the pipeline. Steven A. Walz: We have had a few payoffs recently, not because clients wanted to leave us but because they sold one of their projects. Generally, the pipeline is pretty decent. As we have discussed many times, an outsized segment of our growth has come from Columbus and continues to do so. But we also indicated this year we were hoping that our other markets—Fort Wayne, Indianapolis, Toledo, and Findlay—all kick in and provide their portion of our $75 million to $100 million growth. Consistent with that, we continue to focus on expanding the breadth of growth across those markets. Columbus delivers a lot of growth for us and will continue to do so, but we are committed to expanding that growth story to those other urban markets, and that includes the Angola and Napoleon offices. There is more growth there, and we think our model serves those markets well. Mark A. Klein: Yes, a lot of disruption in those markets has played well into our hand. We could have gone there before the disruption, but it would not be quite as robust as we are finding it today. Brian Joseph Martin: Okay. With geopolitical risks out there, we have heard more people say near-term sentiment is not quite as positive on loan growth. It sounds like your pipeline is still good and you are still optimistic about achieving your targeted goals for the year. Steven A. Walz: Yes, I think that is true, Brian. We have not seen a whole lot of blowback from what is going on in the Middle East. Our ag portfolio, which is not insignificant, has by and large prepurchased supplies that could be impacted, so we would not expect any hit to our ag portfolio this year, and hopefully things do not persist beyond this year. Mark A. Klein: And I will reiterate our credit culture: we are never going to get enough yield to compensate for an undue amount of risk. We walk away from some deals. I think we could grow in the low double digits if we wanted to, but we stay disciplined. We like credit quality and we know the effect that has on profitability should we lose what we have worked hard to get. Steven A. Walz: Certainly. The markets we are in would afford that kind of opportunity, but we walk away from deals that do not make sense for our credit culture. Brian Joseph Martin: Maybe, Anthony, on the margin. The liquidity you have today seems to give you a little cover on potential deposit competition. How do you feel about the margin over the next couple of quarters in a stable rate environment? Anthony V. Cosentino: We are down, call it, five basis points from the linked quarter, really a function of being very liquid. We had a lot of deposit growth—$65 million in the quarter. We were not terribly aggressive on the rate side, even in the new markets—maybe 25 basis points above market, nothing crazy. I think there has been a little bit of money parking in the markets and we were the benefactor of that. A number of new clients we have gotten via disruption have brought in deposit dollars. I do think liquidity will wane a little in the coming quarters. We have already started to get a little stickier on deposit pricing, not really matching some aggressive rates. I think we are in a good spot. I think margin at 3.47% is probably going to move up a few basis points in the second quarter because I think we will get back to having, call it, $15 million to $20 million of loan growth in the quarter versus the roughly $1 million we had in the quarter we just finished. Brian Joseph Martin: And in terms of the cost of deposits, are we trending higher from here than lower as you go into next year with competition? Anthony V. Cosentino: I had been pretty confident that deposit costs would trend higher, and they have continued to trend a bit lower, so I have missed that so far. But I still believe the market disruption we have had will not continue indefinitely. Competitors are going to become aggressive. They are focused on growing loans and will have to fund it. Also, deviating from CRE a bit to more ag-based C&I brings a deposit base we are very happy about that we did not have prior to six months ago. Not only are we acquiring balances, the full relationship comes with deposits, which has been a real needle mover. Brian Joseph Martin: In terms of the mortgage outlook, you talked about 20% to 25% production growth next quarter. Bigger picture, where rates are today—what are you seeing for mortgage for the full year? Mark A. Klein: I have been thinking $350 million, expecting a bit of a play in the 10-year, which has been temporarily disrupted and is a bit of a fly in the ointment. We just hired a couple of new high-producing MLOs in some urban markets and we are gaining traction and more representation in some of our legacy markets. Average production has gone down, which is why we brought on more MLOs. With a larger team, and given the 80/20 rule, I am still optimistic we can deliver something closer to that $350 million to $400 million number, though I am sure Anthony has a different number. Anthony V. Cosentino: In March, we did 45% of our total first-quarter volume. We did just shy of $30 million in March. Our pipeline is around $35 million. I think we are going to do roughly $90 million in the second quarter and would suspect we repeat that in the third quarter if things stay where they are. Hiring high-performing folks in various markets tells you our model is still working and the volume is out there. That would put you on pace to get to $310 million to $325 million on the high end for the full year. I think rates will be relatively stable. Mortgage rates have fought back against the increase in the long end of the curve, and as long as we are at 6% to 5.875%, I think we can hang in there. You are starting to see a lot of secondary people get aggressive to try to get volume, and the FHLB is getting aggressive on very low-rate opportunities to sell; we will be participating, which should benefit us. Mark A. Klein: I am hopeful we will get a play in the 10-year. With a larger balance sheet, monthly contribution keeps compounding; we do not need to do $100 million of mortgages every month. We have the balance sheet size and the operating revenue now. Brian Joseph Martin: And the mortgage folks you hired—are you still planning to hire more, and were those in metro markets? Which markets did you add people in? Mark A. Klein: Yes. We have added one in Cincinnati and Indianapolis. We have a couple of individuals considering roles in some of our legacy markets. Findlay has been a gap for us, but we have had enough people to cover those markets. Having people who live, work, and play in the market is more accretive to all business lines, like in Angola. We are currently hunting down somebody in the Angola market. We are committed to the business line. We love the gain on sale, and getting another household with more products and services is a big deal. Brian Joseph Martin: Last two for me. On expenses, big picture—how you are thinking about the full year and ebbs and flows? Any initiatives to take it off the current run rate, or is the current run rate a decent level to think about in the coming quarters? Anthony V. Cosentino: I think the run rate is in pretty good shape. We have consolidated some areas in our operational sections and made efficiencies, which will continue to help us. The bulk of our technology spend on new things is largely in the rearview mirror. We do have a conversion to Fiserv at the end of the year that I think will be a net zero in 2026 and will be a bit of a headwind as we go into 2027 as we try to find opportunities. I am very hopeful on the expense side. As we have gotten bigger, we have found ways to do more with less, which is what we need to get to continually. Brian Joseph Martin: And capital—you said the buyback is a little bit lower. Near term, you talked about sub debt and maybe potentially M&A. Is that how to think about capital deployment today? Anthony V. Cosentino: Yes. We have been very aggressive on the buyback and I still think it is a great use of internally generated capital, but at the price where it is today, we can afford to slow down a bit. We have sub debt in June we have to think about. We also have a lot of opportunities to deploy, and if we do another $160 million of asset growth in 2026 like we did in 2025—which I do not anticipate—we would be stressed a bit on regulatory capital. We have to be cognizant of that. Mark A. Klein: On M&A, we continue to keep our ear to the ground—downstream as well as midstream and everything in between—but nothing transformative at this point. We know organic is great, but clearly M&A is divine. We continue to look at opportunities in the region. Brian Joseph Martin: And credit all sounds good. Continued success on the credit front—nothing really causing problems in terms of risks you are seeing? Mark A. Klein: From a high level, when you have a downturn, you get a good idea of underwriting and administration, and we have not had much of a downturn. Our clients’ balance sheets are pretty liquid. We get personal guarantees, rely on makers, and have good projects in urban markets. Generally, all is good, but as we all know, you have it until you do not. We are precautious on the risk we take and the deals we do. If we wanted to really light it up, the opportunities are there—17 different lenders out there trying to find deals—but our job is to pull back on the reins to keep this measured and on the tracks. Steven, any more perspective? Steven A. Walz: Yes. The stability of our asset quality continues. The credits we are working through are not a function of turnover and new credits coming into nonaccrual. It is largely the same ones we have talked about in the past. The wheels of justice grind a little more slowly than we might like. As Anthony referenced, we did get control of one piece of collateral, and we are very confident in our position. On those credits, we think we are going to get out where we ultimately belong. Brian Joseph Martin: And lastly, deposits and liquidity—you had good growth. Do deposits tail off a bit here? How are you thinking about deposit growth from here? Anthony V. Cosentino: I think we are going to have a down quarter in the second quarter on deposits. We already know of some larger relationships that are moving out for normal business reasons. I do not think we will have enough on the retail side to overcome that. I think we will probably be at a 90% loan-to-deposit ratio for the rest of the year, and that is a comfort level for us. We do not need to be overly priced on deposits to get there. We are only nervous about liquidity if the loan pipeline gets to the upper end of our range. We are comfortable at mid- to high-single-digit growth and funding that. If we get above that level is when we might have some stress. Mark A. Klein: I would not downplay the market disruption, which has been wonderful for us. We have garnered relationships we might not have been able to bring over otherwise. That has just begun. We are nine months into our plan to find more of disrupted companies’ assets, and we are at that $100 million to $110 million number. We are cruising along to our strategic goal of a few hundred million—lots of opportunities and a bigger job to be done. Brian Joseph Martin: Gotcha. Okay. Well, thanks for taking the questions, guys. I appreciate it. Operator: This concludes our question and answer session. I would like to turn the conference back over to Mr. Mark A. Klein for any closing remarks. Mark A. Klein: Thank you, and thanks for joining us this morning. We look forward to having you join us in July for our second quarter 2026 results. Thanks for joining us. Goodbye. Steven A. Walz: Have a great day. Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. Before you buy stock in Sb Financial Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sb Financial Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SB Financial (SBFG) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Income: $4.3 million, with diluted EPS of $0.69 compared to $0.33 in Q1 2025. Tangible Book Value Per Share: $18.45, up from $15.79 in Q1 2025. Net Interest Income: $12.7 million, up from $11.3 million in Q1 2025. Loan Balances: Increased by approximately $92 million year-over-year. Total Deposits: $1.37 billion, up from $1.27 billion in Q1 2025. Non-Interest Income: Improved to $4.7 million from $4.1 million in Q1 2025. Non-Interest Expense: $11.9 million, improved from the prior year. Non-Performing Assets: $4.8 million or 0.3% of total assets. Mortgage Originations: Approximately $66 million, up from $40 million in Q1 2025. Net Interest Margin: 3.49%, compared to 3.41% in Q1 2025. Operating Revenue: $17.4 million, a 13.2% increase from Q1 2025. Efficiency Ratio: 68.1%, improved from the prior-year period. Allowance for Credit Losses: 1.39% of total loans. Quarterly Dividend: $0.16 per share, representing 25% of earnings. Warning! GuruFocus has detected 7 Warning Signs with OCFC. Is SBFG fairly valued? Test your thesis with our free DCF calculator. Release Date: April 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SB Financial Group Inc (NASDAQ:SBFG) reported a solid start to 2026 with a net income of $4.3 million and diluted EPS of $0.69, marking the 61st consecutive quarter of profitability. The company's tangible book value per share increased to $18.45 from $15.79 in the first quarter of 2025, indicating strong shareholder value growth. Loan balances increased by approximately $92 million year-over-year, reflecting continued production and sequential quarterly growth. Non-interest income improved significantly to $4.7 million, driven by higher mortgage loan servicing fees and gains on the sale of SBA loans. Asset quality remains strong with non-performing assets at 0.3% of total assets and a delinquency level reduced to just 28 basis points at quarter-end. The operating environment remains competitive, which could impact future growth and profitability. Non-performing assets increased modestly from year-end, although they remain below the prior year quarter level. The mortgage business experienced weaker volume than anticipated, with a pipeline stabilizing at approximately $35 million. Funding costs are expected to trend higher due to potential deposit competition, which could pressure net interest margins. The company anticipates a down quarter in deposit growth for the second quarter, which may affect liquidity and loan-to-deposit ratios. Q: Can you provide an outlook on loan growth and the impact of new markets? A: Mark Klein, Chairman, President, and CEO, explained that the new markets, such as Angola and Napoleon, have shown significant potential due to market disruptions and consolidation. These areas are expected to contribute to loan growth and deposit opportunities. The company is optimistic about continued growth in these markets and plans to expand further in Columbus by the end of the year. Q: How do you view the current loan pipeline and growth expectations? A: Steven Walz, Chief Lending Officer, stated that the loan pipeline remains strong, with high single-digit growth expected. The company is focusing on expanding growth in urban markets beyond Columbus, leveraging market disruptions to their advantage. Q: What is your outlook on net interest margin and deposit costs? A: Anthony Cosentino, CFO, noted that the net interest margin is expected to increase slightly in the second quarter due to anticipated loan growth. While deposit costs have been lower than expected, they may trend higher as competitors become more aggressive in funding loans. Q: What are your expectations for mortgage production for the year? A: Mark Klein expressed optimism about reaching $350 million to $400 million in mortgage production, supported by hiring new high-producing mortgage loan officers. Anthony Cosentino added that the company expects to achieve $310 million to $325 million for the full year, assuming stable interest rates. Q: How are you managing expenses and capital deployment? A: Anthony Cosentino mentioned that the current expense run rate is stable, with opportunities for operational efficiencies. The company is cautious with capital deployment, focusing on buybacks, potential sub-debt calls, and M&A opportunities, while maintaining regulatory capital levels. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

SB Financial Group, Inc. (SBFG) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.00%. A quarter ago, it was expected that this company would post earnings of $0.64 per share when it actually produced earnings of $0.65, delivering a surprise of +1.56%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. SB Financial Group, which belongs to the Zacks Banks - Northeast industry, posted revenues of $17.42 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.34%. This compares to year-ago revenues of $15.39 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SB Financial Group shares have lost about 3.1% since the beginning of the year versus the S&P 500's gain of 4.3%. While SB Financial Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SB Financial Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.65 on $17.5 million in revenues for the coming quarter and $2.47 on $69.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Merchants Bancorp (MBIN), is yet to report results for the quarter ended March 2026. The results are expected to be released on April 28. This bank holding company is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of +24.7%. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. Merchants Bancorp's revenues are expected to be $175.61 million, up 20.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SB Financial Group, Inc. (SBFG) : Free Stock Analysis Report Merchants Bancorp (MBIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DEFIANCE, Ohio, April 23, 2026 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the quarter ended March 31, 2026. First Quarter 2026 Highlights compared to the first quarter of the prior year include: GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.3 million, or $0.69 per DEPS, an improvement from the $2.2 million, or $0.33 per DEPS in the prior-year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”) and merger costs, was $3.9 million, up 44.7% percent compared to $2.7 million for the prior-year period. Adjusted DEPS of $0.63 was also up 50.0 percent, from the adjusted prior year. Net interest income of $12.7 million increased by 12.7 percent from $11.3 million reported in the prior-year quarter. Loan growth of $92.9 million, or 8.5 percent from the prior-year quarter, with growth from the linked quarter of $544,000, or 0.05 percent. This marks the eighth consecutive quarter of sequential loan growth. Deposit growth of $100.6 million, or 7.9 percent from the prior-year quarter, with an increase from the linked quarter of $64.6 million, or 4.9 percent. Adjusted tangible book value (“ATBV”) per share excluding AOCI increased to $21.96 at quarter end. Tangible book value (“TBV”) per share ended the quarter at $18.45 up $2.66 per share or 16.8 percent from the prior-year quarter. “Net income for the first quarter of 2026 was $4.3 million, a 99.1 percent increase from the prior-year quarter, with GAAP DEPS of $0.69, up 109.1 percent from the prior-year period,” said Mark A. Klein, Chairman, President, and Chief Executive Officer. “This marks our 61st consecutive quarter of profitability and reflects the continued benefits of not only the Marblehead acquisition, but the wider margins and robust balance sheet growth we experienced over the last four quarters.” For the quarter, net interest income increased to $12.7 million, up 12.7 percent from the prior-year quarter, primarily driven by solid loan growth, higher loan yields, and stable funding costs. Total loans increased $92.9 million from the prior-year quarter and $544,000 from the linked quarter. Total deposits at quarter end increased $100.6 million, or 7.9% percent, to $1.37 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across our markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of our diversified revenue business model. RESULTS OF OPERATIONS In the first quarter of 2026, total operating revenue increased to $17.4 million, up 13.2 percent from $15.4 million in the prior-year quarter and 6.1 percent from $16.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income and improved noninterest income, partially offset by a modest increase in total interest expense. Net interest income for the quarter totaled $12.7 million, compared to $11.3 million in the prior-year period and consistent with $12.7 million in the linked quarter. The year-over-year improvement was driven by an increase in interest income on loans, which increased by 13 percent, rising from $15.4 million in the prior-year quarter to $17.3 million. Total interest expense increased modestly from the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin increased approximately 8 basis points from 3.41 percent in the prior-year quarter to 3.49 percent. Mortgage Loan Business Net mortgage banking revenue for the quarter reached $1.8 million, an increase of $369,000 from the prior-year quarter. Loan servicing fees added $928,000 to revenue, reflecting an increase of $34,000 from the prior-year quarter. The OMSR net valuation adjustment for the first quarter of 2026 was a recapture of $452,000, compared to a recapture of $11,000 in the first quarter of 2025. Noninterest Income and Noninterest Expense “Noninterest income for the first quarter of 2026 totaled $4.7 million, an increase of $605,000, or 14.7 percent, from the prior-year quarter, primarily driven by higher mortgage loan servicing fees, increased gains on sale of mortgage loans, and stronger gain on sale of non-mortgage loans, partially offset by a $97,000 decrease in other noninterest income. The year-over-year improvement reflects the Company’s continued progress in strengthening the diversity of its noninterest revenue base,” Mr. Klein noted. Noninterest expense for the first quarter of 2026 totaled $11.9 million, a decrease of 3.9 percent from the prior-year quarter, driven primarily by lower data processing expense of $713,000 due to the 2025 merger expenses and a reduction in salaries and employee benefits of $141,000. These decreases were partially offset by higher marketing expense of $112,000 and a modest increase in state, local and other taxes of $64,000. “We remain focused on maintaining disciplined control over noninterest expense. Our efficiency ratio for the first quarter of 2026 was 68.12 percent, a strong improvement from the prior-year period and largely consistent with the linked quarter, reflecting continued discipline in expense management as we balanced targeted investments with revenue performance,” stated Mr. Klein. Balance Sheet As of March 31, 2026, SB Financial reported total assets of $1.60 billion, an increase of $59.2 million from December 31, 2025, and $103.6 million, or 6.9 percent, from March 31, 2025. The year-over-year increase reflects continued growth in the loan portfolio, as well as the ongoing benefit of the Marblehead acquisition, which has further expanded the Company’s market presence and funding base in Northern Ohio. Cash increased by $21.1 million from the prior-year period to $126.3 million, driven by deposit growth and investment portfolio runoff. Key metrics for the quarter included a loan-to-deposit ratio of 86.10 percent and a loan-to-asset ratio of 73.6 percent, both of which remained within the Company’s target range. Total deposits at quarter end increased to $1.37 billion, up $100.6 million, or 7.9 percent, from the prior-year quarter, reflecting continued organic deposit growth and stable client relationships across the franchise. Shareholders’ equity totaled $143.7 million at quarter end, representing an increase of $12.1 million, or 9.2 percent, from the prior-year period, equivalent to an increase of $2.81 per share. During the first quarter, SB Financial repurchased approximately 29,000 shares, a slight decrease from the prior quarter, reflecting management’s disciplined capital deployment and its assessment of market conditions and capital priorities during the period. The Company remains focused on a balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases while maintaining flexibility to support organic growth, strategic opportunities, and capital strength. “As we enter the second quarter of 2026, we believe the Company is operating from a position of strength, supported by a solid balance sheet, healthy credit metrics, and a stable funding base,” said Mr. Klein. “Loan growth over the past year reflects steady client activity and disciplined execution across our markets, while reserve coverage and overall credit performance remained sound during the quarter. We continue to benefit from a diversified business model and a consistent approach to capital management, which we believe positions us well to support prudent growth and long-term shareholder value.” Asset Quality As of March 31, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.8 million representing 0.30 percent of total assets, a decrease of $1.4 million from $6.1 million, or 0.41 percent of total assets in the prior-year quarter, and a modest increase from the linked quarter, which reported nonperforming assets of $4.7 million, or 0.30 percent of total assets. The allowance for credit losses remained strong at 1.39 percent of total loans, providing coverage of 432.2 percent of nonperforming loans. This level was broadly consistent with the linked quarter and represented an improvement from the prior-year period, reflecting the Company’s disciplined credit risk framework. Net loan charge-offs to average loans remained modest at 1 basis point, compared to 4 basis points in the linked quarter and 3 basis points in the prior-year quarter. Collectively, these metrics reflect SB Financial’s continued emphasis on disciplined underwriting and effective credit administration. “Our credit results this quarter continued to reflect stability across the loan portfolio and disciplined management of problem assets,” said Mr. Klein. “While nonperforming assets increased modestly from the linked quarter, overall credit performance remained sound, and reserve coverage continued to reflect our conservative approach to risk management. We remain focused on disciplined underwriting and proactive credit administration as we support measured growth across our markets.” Webcast and Conference Call The Company will hold the first quarter 2026 earnings conference call and webcast on April 24, 2026, at 11:00 a.m. EST. 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 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. 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”. Forward-Looking Statements Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements. Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Investor Contact Information: Mark A. Klein Chairman, President and Chief Executive Officer [email protected] Anthony V. Cosentino Executive Vice President and Chief Financial Officer [email protected]