SB Financial Group Announces Third Quarter 2026 Results

DEFIANCE, Ohio, Oct. 22, 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 September 30, 2026.

Third Quarter 2026 Highlights compared to the third quarter of the prior year and linked quarter include:

GAAP net income and Diluted Earnings per Share (“DEPS”) were $3.9 million, or $0.63 per DEPS, a slight decline from the $4.0 million, or $0.64 per DEPS in the prior-year quarter.
Total loans reached $1.22 billion, reflecting an increase of $108.2 million, or 9.7 percent, from the prior-year quarter and an improvement of $29.2 million, or 2.5 percent, from the linked quarter. The performance this quarter marks SBFG's tenth consecutive quarter of expansion in our loan portfolio.
Total deposits climbed to $1.38 billion, increasing by $120.3 million, or 9.5 percent, from the prior year quarter, and down $8.3 million, or 0.6 percent, from the linked quarter.
Tangible book value (“TBV”) per common share finished the quarter at $18.65, climbing $1.44 per share, or 8.3 percent, from $17.21 in the prior-year quarter. Adjusted tangible book value excluding AOCI advanced to $23.03 at quarter end.

Nine months ended September 30, 2026 Highlights compared to the same period of the prior-year:

GAAP net income increased to $12.7 million, a 26.7 percent expansion compared to $10.1 million reported for the previous nine months, and diluted EPS was $2.04, an improvement of 31.1 percent from $1.56, same period last year.
Net interest income rose to $39.1 million, representing a 9.4 percent improvement from the $35.7 million reported in the prior-year period.
Noninterest income increased by 7.1 percent to $14.4 million compared to $13.4 million reported in the previous nine months.
Noninterest expense expanded, increasing by 4.1 percent to $37.2 million from $35.8 million in the prior-year period. YTD operating leverage was strong at 1.7 times.

Earnings Highlights	Three Months Ended								Nine Months Ended
($ in thousands, except per share & ratios)	Sep. 2026			Sep. 2025			% Change		Sep. 2026			Sep. 2025			% Change
Operating revenue	$	18,075		$	16,578		9.0	%	$	53,440		$	49,140		8.8	%
Interest income		20,526			18,809		9.1	%		59,653			54,648		9.2	%
Interest expense		7,102			6,475		9.7	%		20,563			18,907		8.8	%
Net interest income		13,424			12,334		8.8	%		39,090			35,741		9.4	%
Provision for credit losses		127			124		-2.4	%		640			1,108		-42.2	%
Noninterest income		4,651			4,244		9.6	%		14,350			13,399		7.1	%
Noninterest expense		13,157			11,498		14.4	%		37,223			35,760		4.1	%
Net income		3,946			4,046		-2.5	%		12,739			10,056		26.7	%
Adjusted Earnings per diluted share		0.63			0.68		-7.4	%		1.99			1.67		19.2	%
Earnings per diluted share		0.63			0.64		-1.6	%		2.04			1.56		30.8	%
Adjusted Return on Avg. Assets		0.95	%		1.13	%	-15.9	%		1.03	%		0.96	%	7.3	%
Return on average assets		0.96	%		1.07	%	-10.3	%		1.06	%		0.90	%	17.8	%
Adjusted Return on Avg. Equity		10.44	%		12.79	%	-18.4	%		11.34	%		10.84	%	4.6	%
Return on average equity		10.53	%		12.08	%	-12.8	%		11.62	%		10.15	%	14.5	%

"Net income for the third quarter of 2026 was stable at $3.9 million, a 2.5 percent decrease from the prior-year quarter, with GAAP DEPS of $0.63, a decrease of 1.6 percent," said Mark A. Klein, Chairman, President, and Chief Executive Officer. While our bottom-line results were slightly lower compared to the prior year, this marks our 63rd consecutive quarter of profitability. Our performance this quarter reflects the continued resilience of our core community banking operations—highlighted by our tenth consecutive quarter of loan growth—and dynamic contributions from our fee-based business lines, which helped mitigate the impact of elevated operating expenses and broader economic pressures.

RESULTS OF OPERATIONS

Total operating revenue for the third quarter of 2026 was $18.1 million, an increase of 9.0 percent year-over-year and slightly improved from the linked quarter. This revenue growth was primarily driven by steady gains in our loan portfolio and resilience in noninterest income categories. Net interest income was $13.4 million for the third quarter of 2026, an increase from $12.3 million in the third quarter of 2025 and $13.0 million in the second quarter of 2026. Total interest income rose to $20.5 million, propelled by robust loan volume and repricing dynamics. Total interest expense was $7.1 million, a 9.7 percent increase from the prior-year period as deposit costs adjusted to the current rate environment. As a result, net interest margin was 3.50 percent, expanding 2 basis points from the third quarter of 2025.

Total loans increased $108.2 million, or 9.7 percent, from the prior-year quarter and $29.2 million, or 2.5 percent, from the linked quarter. Total deposits at quarter end expanded $120.3 million, or 9.5 percent, year-over-year to $1.38 billion, anchored by durable core customer relationships and ongoing deposit gathering initiatives across our footprint, despite a minor linked-quarter decrease of $8.3 million. Overall quarterly performance demonstrated disciplined balance sheet management, robust credit quality, and the strategic resilience of our diversified revenue streams.

Mortgage Loan Business

Net mortgage banking revenue for the quarter reached $1.8 million, an increase of $293,000 from the prior-year quarter. Loan servicing fees added $946,000 for the quarter, an increase from the prior-year period. The OMSR valuation adjustment for the third quarter of 2026 was a recapture of $43,000, compared to a negative adjustment of $301,000 in the third quarter of 2025.

Mortgage Banking
($ in thousands)	Sep. 2026			Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Prior Year Growth
Mortgage originations	$	77,678		$	79,346		$	65,768		$	72,398		$	67,609		$	10,069
Mortgage sales		66,529			70,253			53,420			70,361			66,408			121
Mortgage servicing portfolio		1,517,593			1,504,657			1,482,052			1,479,982			1,470,360			47,233
Mortgage servicing rights		16,204			15,953			15,728			15,254			15,347			857


Revenue
Loan servicing fees		946			934			928			928			914			32
OMSR amortization		(472	)		(497	)		(529	)		(572	)		(455	)		(17	)
Net administrative fees		474			437			399			356			459			15
OMSR valuation adjustment		43			(54	)		452			(157	)		(301	)		344
Net loan servicing fees		517			383			851			199			158			359
Gain on sale of mortgages		1,262			1,541			978			1,272			1,328			(66	)
Mortgage banking revenue, net	$	1,779		$	1,924		$	1,829		$	1,471		$	1,486		$	293

Noninterest Income and Noninterest Expense

Total noninterest income for the third quarter of 2026 was $4.7 million, up 9.6 percent from the $4.2 million reported in the third quarter of 2025. The year-over-year expansion was driven primarily by higher net mortgage banking revenue, supported by increased loan servicing fees of $946,000 and a positive OMSR valuation recapture, alongside steady, consistent contributions from our Wealth Management and Title Insurance divisions. "The resilience of our fee based revenue stream validates our diversified business model, as cross-functional referral strategies continue to anchor our above median level of growth," Klein noted.


Noninterest Income/Noninterest Expense
($ in thousands, except ratios)	Sep. 2026			Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Prior Year Growth
Noninterest Income (NII)	$	4,651		$	4,987		$	4,712		$	3,708		$	4,244		$	407
NII / Total Revenue		25.7	%		27.8	%		27.0	%		22.6	%		25.6	%		0.1	%
NII / Average Assets		1.1	%		1.2	%		1.2	%		1.0	%		1.1	%		0.0	%
Total Revenue Growth		9.0	%		4.5	%		13.3	%		6.3	%		15.9	%		-6.9	%

Noninterest Expense (NIE)	$	13,157		$	12,137		$	11,929		$	11,239		$	11,498		$	1,659
Efficiency Ratio		72.5	%		67.3	%		68.1	%		68.1	%		69.0	%		3.5	%
NIE / Average Assets		3.2	%		3.0	%		3.1	%		2.9	%		3.0	%		0.2	%
Net Noninterest Expense/Avg. Assets		-2.1	%		-1.8	%		-1.9	%		-1.9	%		-1.9	%		-0.2	%
Total Expense Growth		14.4	%		2.4	%		-3.9	%		2.1	%		4.5	%		9.9	%

Noninterest expense for the third quarter of 2026 increased 14.4 percent to $13.2 million from $11.5 million in the prior-year quarter, driven by an increase of $1.14 million in salaries and employee benefits, which totaled $7.3 million, reflecting higher incentive costs and medical expenses. Data processing fees for the quarter stood at $1.12 million compared to $723,000 in the prior-year quarter, while marketing expenses increased to $358,000 from $174,000 in 3Q25. Both of these categories reflect higher costs related to several pending client and product conversions. These increases were partially offset by disciplined reductions in other expenses, which declined $95,000, and employee expenses, which decreased $41,000 from the prior-year period. “Our core efficiency ratio for the third quarter of 2026 was 72.46 percent, compared to 69.00 percent in the third quarter of 2025 and 67.32 percent in the linked quarter,” stated Mr. Klein. “While overhead was elevated this quarter, our fundamental focus on positive operating leverage and disciplined expense management remains a vital pillar as we proactively fund expansion across our growth markets.”

Balance Sheet

As of September 30, 2026, SB Financial reported total assets of $1.61 billion, representing an increase of $69.1 million from December 31, 2025, and $118.2 million, or 7.9 percent, from September 30, 2025. The year-over-year asset growth was primarily driven by steady organic loan generation across our commercial and real estate lines. Cash and due from banks increased by $17.4 million from the prior-year period to $102.4 million, normalizing during the quarter as funds were strategically deployed into the loan portfolio. Key balance-sheet metrics for the quarter included a loan-to-deposit ratio of 88.1 percent and a loan-to-asset ratio of 75.5 percent, both of which remained well-aligned with our target operating bands.

Total deposits at quarter end reached $1.38 billion, an increase of $120.3 million, or 9.5 percent, from the prior-year quarter, supported by a competitive community banking footprint and durable client retention efforts. Noninterest-bearing demand deposits totaled $270.0 million, accounting for 19.5 percent of the total deposit portfolio. Shareholders’ equity finished the period at $144.3 million, representing an increase of $7.4 million, or 5.4 percent from the prior-year period, providing a solid foundation for ongoing organic loan growth initiatives.

During the third quarter of 2026, SB Financial repurchased approximately 6,700 shares of its common stock, reflecting a measured approach to capital allocation and ongoing evaluation of 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.

“In summary, as we enter the final quarter of 2026, SB Financial continues to operate from a position of fundamental strength, anchored by robust capital levels, exceptional credit quality, and a durable core deposit franchise,” stated Mr. Klein. “Achieving our tenth consecutive quarter of loan expansion demonstrates the strength of our relationship-based community banking model and localized lending expertise. Meanwhile, our nonperforming assets remain near historic lows at 0.27 percent of total assets, backed by strong reserve coverage that reflects our unyielding commitment to disciplined credit administration. Positioned with a resilient deposit base, growing fee-generating business lines, and careful overhead control, we remain focused on finishing 2026 with strong momentum and driving long-term value for our shareholders.”

Loan Balances
($ in thousands, except ratios)	Sep. 2026			Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Annual Growth
Commercial	$	106,915		$	111,128		$	112,226		$	113,878		$	117,581		$	(10,666	)
% of Total		8.8	%		9.3	%		9.5	%		9.6	%		10.6	%		-9.1	%
Commercial RE		640,127			611,274			601,556			596,983			535,307			104,820
% of Total		52.5	%		51.4	%		50.9	%		50.6	%		48.2	%		19.6	%
Agriculture		83,804			81,341			78,569			76,514			65,150			18,654
% of Total		6.9	%		6.8	%		6.7	%		6.5	%		5.9	%		28.6	%
Residential RE		294,321			295,481			299,741			304,741			309,140			(14,819	)
% of Total		24.1	%		24.8	%		25.4	%		25.8	%		27.8	%		-4.8	%
Consumer & Other		93,622			90,335			89,043			88,475			83,367			10,255
% of Total		7.7	%		7.6	%		7.5	%		7.5	%		7.5	%		12.3	%
Total Loans	$	1,218,789		$	1,189,559		$	1,181,135		$	1,180,591		$	1,110,545		$	108,244
Total Growth Percentage																	9.7	%


Deposit Balances
($ in thousands, except ratios)	Sep. 2026			Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Annual Growth
Non-Int DDA	$	270,029		$	258,576		$	248,239		$	254,063		$	246,725		$	23,304
% of Total		19.5	%		18.6	%		18.1	%		19.4	%		19.5	%		9.4	%
Interest DDA		205,459			206,593			215,594			202,501			194,420			11,039
% of Total		14.9	%		14.9	%		15.7	%		15.5	%		15.4	%		5.7	%
Savings		312,212			325,675			333,662			296,484			290,111			22,101
% of Total		22.6	%		23.4	%		24.3	%		22.7	%		23.0	%		7.6	%
Money Market		322,395			315,363			300,028			280,896			261,953			60,442
% of Total		23.3	%		22.7	%		21.9	%		21.5	%		20.7	%		23.1	%
Time Deposits		272,769			284,940			274,300			273,300			269,313			3,456
% of Total		19.7	%		20.5	%		20.0	%		20.9	%		21.3	%		1.3	%
Total Deposits	$	1,382,864		$	1,391,147		$	1,371,823		$	1,307,244		$	1,262,522		$	120,342
Total Growth Percentage																	9.5	%

Asset Quality

As of September 30, 2026, SB Financial continued to focus on maintaining strong asset quality metrics. Nonperforming assets totaled $4.3 million, representing 0.27 percent of total assets, an improvement of $574,000 compared to $4.9 million, or 0.32 percent of total assets, in the prior-year quarter, and relatively stable compared to the linked-quarter balance of $4.4 million, or 0.27 percent of total assets. Total nonaccruing loans declined significantly to $3.2 million from $4.6 million in the prior-year period, while foreclosed properties and repossessed assets stood at $1.1 million.

The allowance for credit losses remained strong at 1.34 percent of total loans, providing 508.9 percent coverage of nonperforming loans—a substantial increase from 345.4 percent in 3Q25 and consistent with 470.3 percent in the linked quarter, reflecting a conservative approach to risk management. Annualized net loan charge-offs to average loans remained exceptionally modest at less than 1 basis point, improving from 6 basis points in the linked quarter and comparable to less than 1 basis point in the prior year quarter, with net charge-offs totaling $17,000.

“Our asset quality metrics embody our commitment to disciplined risk management within a dynamic economic environment,” stated Mr. Klein. “With nonperforming assets down year-over-year and our allowance providing over 500 percent coverage of nonperforming loans, our reserve position underscores the inherent quality of our loan portfolio and the strength of our client relationships. We remain dedicated to balancing our conservative credit discipline with proactive support for high-quality loan growth across all nine of our major markets.”

Nonperforming Assets																Annual Change
($ in thousands, except ratios)	Sep. 2026			Jun. 2026			Mar. 2026			Dec. 2025			Sep. 2025			Annual Change
Commercial & Agriculture	$	1,054		$	1,304		$	1,359		$	2,256		$	2,243		$	(1,189	)
% of Total Com./Ag. loans		0.55	%		0.68	%		0.71	%		1.18	%		1.23	%		-53.0	%

Commercial RE		195			339			668			771			778			(583	)
% of Total CRE loans		0.03	%		0.06	%		0.11	%		0.13	%		0.15	%		-74.9	%

Residential RE		1,493			1,476			1,439			1,322			1,400			93
% of Total Res. RE loans		0.51	%		0.50	%		0.48	%		0.43	%		0.45	%		6.6	%

Consumer & Other		476			367			233			230			195			281
% of Total Con./Oth. loans		0.51	%		0.41	%		0.26	%		0.26	%		0.23	%		144.1	%
Total Nonaccruing Loans		3,218			3,486			3,699			4,579			4,616			(1,398	)
% of Total loans		0.26	%		0.29	%		0.31	%		0.39	%		0.42	%		-30.3	%

Foreclosed Assets and Other Assets		1,061			936			974			104			237			824
Total Change (%)																N/M
Total Nonperforming Assets	$	4,279		$	4,422		$	4,673		$	4,683		$	4,853		$	(574	)
% of Total assets		0.27	%		0.27	%		0.29	%		0.30	%		0.32	%		-11.83	%

Webcast and Conference Call

The Company will hold the third quarter 2026 earnings conference call and webcast on October 22, 2026, at 3:30 p.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed 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. Klein
Chairman, President and
Chief Executive Officer
Mark.Klein@YourStateBank.com

Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
Tony.Cosentino@YourStateBank.com

		SB FINANCIAL GROUP, INC.
		CONSOLIDATED BALANCE SHEETS - (Unaudited)

				September			June			March			December			September
			($ in thousands)		2026			2026			2026			2025			2025

ASSETS
	Cash and due from banks			$	102,427		$	138,152		$	126,293		$	71,543		$	85,025
	Interest bearing time deposits				1,715			2,455			1,965			1,140			2,025
	Available-for-sale securities				177,767			179,026			183,626			188,626			193,190
	Loans held for sale				5,391			7,438			7,203			1,761			4,736
	Loans, net of unearned income				1,218,789			1,189,559			1,181,135			1,180,591			1,110,545
	Allowance for credit losses				(16,377	)		(16,395	)		(16,388	)		(16,114	)		(15,943	)
	Premises and equipment, net				20,775			21,088			21,295			21,688			21,764
	Federal Reserve and FHLB Stock, at cost				5,674			5,502			5,463			5,610			5,466
	Foreclosed assets				1,061			936			974			104			237
	Interest receivable				5,989			5,455			5,499			5,490			5,455
	Goodwill				27,158			27,158			27,158			27,158			27,158
	Cash value of life insurance				32,469			32,354			32,401			32,208			32,004
	Mortgage servicing rights				16,204			15,953			15,728			15,254			15,347
	Other assets				15,449			11,383			12,246			10,308			9,254
			Total assets	$	1,614,491		$	1,620,064		$	1,604,598		$	1,545,367		$	1,496,263



LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits
		Non interest bearing demand		$	270,029		$	258,576		$	248,239		$	254,063		$	246,725
		Interest bearing demand			205,459			206,593			215,594			202,501			194,420
		Savings			312,212			325,675			333,662			296,484			290,111
		Money market			322,395			315,363			300,028			280,896			261,953
		Time deposits			272,769			284,940			274,300			273,300			269,313
			Total deposits		1,382,864			1,391,147			1,371,823			1,307,244			1,262,522

	Short-term borrowings				6,285			6,732			9,433			9,230			10,976
	Federal Home Loan Bank advances				22,500			22,500			27,500			35,000			35,000
	Trust preferred securities				10,310			10,310			10,310			10,310			10,310
	Subordinated debt net of issuance costs				19,775			19,763			19,751			19,739			19,726
	Interest payable				2,572			2,470			2,553			2,460			2,739
	Other liabilities				25,841			20,402			19,573			20,148			18,051
			Total liabilities		1,470,147			1,473,324			1,460,943			1,404,131			1,359,324

	Shareholders' Equity
		Common stock			61,319			61,319			61,319			61,319			61,319
		Additional paid-in capital			15,178			15,275			15,065			15,160			15,086
		Retained earnings			136,071			133,125			129,631			126,311			123,370
		Accumulated other comprehensive loss			(27,138	)		(21,854	)		(21,861	)		(21,481	)		(23,412	)
		Treasury stock			(41,086	)		(41,125	)		(40,499	)		(40,073	)		(39,424	)
			Total shareholders' equity		144,344			146,740			143,655			141,236			136,939

			Total liabilities and shareholders' equity	$	1,614,491		$	1,620,064		$	1,604,598		$	1,545,367		$	1,496,263

SB FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

	($ in thousands, except per share & ratios)			At and for the Three Months Ended										Nine Months Ended

				September		June		March		December		September		September		September
	Interest income			2026		2026		2026		2025		2025		2026		2025
		Loans
		Taxable		$	18,244	$	17,498	$	17,246	$	17,234	$	16,449	$	52,988	$	47,752
		Tax exempt		97		98		99		107		117		294		348
		Securities
		Taxable		1,004		1,006		1,029		1,096		1,097		3,039		3,399
		Tax exempt		36		36		36		36		35		108		108
		Other interest income		1,145		1,182		897		799		1,111		3,224		3,041
			Total interest income	20,526		19,820		19,307		19,272		18,809		59,653		54,648

	Interest expense
		Deposits		6,369		6,237		5,957		5,820		5,721		18,563		16,670
		Repurchase agreements & other		6		7		14		22		28		27		73
		Federal Home Loan Bank advances		230		234		285		370		369		749		1,097
		Trust preferred securities		146		145		144		154		162		435		483
		Subordinated debt		351		243		195		194		195		789		584
			Total interest expense	7,102		6,866		6,595		6,560		6,475		20,563		18,907


	Net interest income			13,424		12,954		12,712		12,712		12,334		39,090		35,741

		Provision for credit losses		127		299		214		198		124		640		1,108

	Net interest income after provision
	for credit losses			13,297		12,655		12,498		12,514		12,210		38,450		34,633

	Noninterest income
		Wealth management fees		954		955		941		900		912		2,850		2,635
		Customer service fees		932		917		910		892		887		2,759		2,652
		Gain on sale of mtg. loans & OMSR		1,262		1,541		978		1,272		1,328		3,781		3,743
		Mortgage loan servicing fees, net		517		383		851		199		158		1,751		1,363
		Gain on sale of non-mortgage loans		29		62		144		38		8		235		105
		Title insurance revenue		514		577		485		525		544		1,576		1,523
		Gain (loss) on sale of assets		(32)		(9)		8		-		-		(33)		-
		Other		475		561		395		(118)		407		1,431		1,378
			Total noninterest income	4,651		4,987		4,712		3,708		4,244		14,350		13,399

	Noninterest expense
		Salaries and employee benefits		7,339		7,005		6,096		6,047		6,198		20,440		19,030
		Net occupancy expense		831		802		882		822		801		2,515		2,487
		Equipment expense		1,205		1,226		1,244		1,154		1,188		3,675		3,381
		Data processing fees		1,124		693		726		790		723		2,543		3,050
		Professional fees		854		844		1,016		805		863		2,714		2,789
		Marketing expense		358		255		277		122		174		890		529
		Telephone and communication expense		119		126		118		124		123		363		387
		Postage and delivery expense		149		146		187		140		157		482		401
		State, local and other taxes		311		221		288		331		268		820		760
		Employee expense		214		177		184		158		255		575		605
		Other expenses		653		642		911		746		748		2,206		2,341
			Total noninterest expense	13,157		12,137		11,929		11,239		11,498		37,223		35,760


	Income before income tax expense			4,791		5,505		5,281		4,983		4,956		15,577		12,272
		Income tax expense		845		1,008		985		1,065		910		2,838		2,216

	Net income			$	3,946	$	4,497	$	4,296	$	3,918	$	4,046	$	12,739	$	10,056

	Common share data:
		Basic earnings per common share		$	0.64	$	0.72	$	0.69	$	0.63	$	0.64	$	2.05	$	1.57
		Diluted earnings per common share		$	0.63	$	0.72	$	0.69	$	0.63	$	0.64	$	2.04	$	1.56

	Average shares outstanding (in thousands):
		Basic:		6,194		6,205		6,230		6,252		6,297		6,210		6,408
		Diluted:		6,218		6,220		6,243		6,266		6,311		6,230		6,427

SB FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

	($ in thousands, except per share & ratios)	At and for the Three Months Ended															Nine Months Ended

		September			June			March			December			September			September			September
	SUMMARY OF OPERATIONS		2026			2026			2026			2025			2025			2026			2025

	Net interest income	$	13,424		$	12,954		$	12,712		$	12,712		$	12,334		$	39,090		$	35,741
	Tax-equivalent adjustment		35			36			36			38			40			107			121
	Tax-equivalent net interest income		13,459			12,990			12,748			12,750			12,374			39,197			35,862
	Provision for credit loss		127			299			214			198			124			640			1,108
	Noninterest income		4,651			4,987			4,712			3,708			4,244			14,350			13,399
	Total operating revenue		18,075			17,941			17,424			16,420			16,578			53,440			49,140
	Noninterest expense		13,157			12,137			11,929			11,239			11,498			37,223			35,760
	Pre-tax pre-provision income		4,918			5,804			5,495			5,181			5,080			16,217			13,380
	Net income		3,946			4,497			4,296			3,918			4,046			12,739			10,056

	PER SHARE INFORMATION:
	Basic earnings per share (EPS)		0.64			0.72			0.69			0.63			0.64			2.05			1.57
	Diluted earnings per share		0.63			0.72			0.69			0.63			0.64			2.04			1.56
	Common dividends		0.160			0.160			0.155			0.155			0.150			0.475			0.450
	Book value per common share		23.30			23.70			23.10			22.65			21.85			23.30			21.85
	Tangible book value per common share (TBV)		18.65			19.04			18.45			18.00			17.21			18.65			17.21
	Market price per common share		28.61			25.27			21.00			22.27			19.29			28.61			19.29
	Market price to TBV		153.4	%		132.7	%		113.8	%		123.7	%		112.1	%		153.4	%		112.1	%
	Market price to trailing 12 month EPS		10.7			9.4			8.2			10.1			9.1			10.7			9.1

	PERFORMANCE RATIOS:
	Return on average assets (ROAA)		0.96	%		1.12	%		1.10	%		1.01	%		1.07	%		1.06	%		0.90	%
	Pre-tax pre-provision ROAA		1.20	%		1.45	%		1.41	%		1.34	%		1.34	%		1.44	%		1.29	%
	Return on average equity (ROE)		10.34	%		12.44	%		12.04	%		11.08	%		12.08	%		11.51	%		10.15	%
	Return on average tangible equity		12.77	%		15.53	%		15.06	%		13.97	%		15.47	%		14.31	%		12.89	%
	Efficiency ratio		72.46	%		67.32	%		68.12	%		68.09	%		69.00	%		69.32	%		72.41	%
	Earning asset yield		5.35	%		5.20	%		5.29	%		5.32	%		5.31	%		5.31	%		5.27	%
	Cost of interest bearing liabilities		2.38	%		2.31	%		2.31	%		2.34	%		2.33	%		2.35	%		2.33	%
	Net interest margin		3.50	%		3.43	%		3.48	%		3.51	%		3.48	%		3.47	%		3.44	%
	Tax equivalent effect		0.01	%		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%		0.02	%
	Net interest margin, tax equivalent		3.51	%		3.44	%		3.49	%		3.52	%		3.50	%		3.49	%		3.46	%
	Non interest income/Average assets		1.13	%		1.24	%		1.21	%		0.96	%		1.12	%		1.19	%		1.20	%
	Non interest expense/Average assets		3.21	%		3.03	%		3.06	%		2.90	%		3.04	%		3.10	%		3.21	%
	Net noninterest expense/Average assets		-2.07	%		-1.78	%		-1.85	%		-1.94	%		-1.92	%		-1.90	%		-2.01	%

	ASSET QUALITY RATIOS:
	Gross charge-offs		133			196			33			133			11			362			146
	Recoveries		116			3			8			3			9			126			14
	Net charge-offs		17			193			25			130			2			236			132
	Nonperforming loans/Total loans		0.26	%		0.29	%		0.31	%		0.39	%		0.42	%		0.26	%		0.42	%
	Nonperforming assets/Loans & OREO		0.35	%		0.37	%		0.40	%		0.40	%		0.44	%		0.35	%		0.44	%
	Nonperforming assets/Total assets		0.27	%		0.27	%		0.29	%		0.30	%		0.32	%		0.27	%		0.32	%
	Allowance for credit loss/Nonperforming loans		508.92	%		470.31	%		443.04	%		351.91	%		345.39	%		508.92	%		345.39	%
	Allowance for credit loss/Total loans		1.34	%		1.38	%		1.39	%		1.36	%		1.44	%		1.34	%		1.44	%
	Net loan charge-offs/Average loans (ann.)		0.01	%		0.06	%		0.01	%		0.04	%		0.00	%		0.03	%		0.02	%

	CAPITAL & LIQUIDITY RATIOS:
	Loans/ Deposits		88.14	%		85.51	%		86.10	%		90.31	%		87.96	%		88.14	%		87.96	%
	Equity/ Assets		8.94	%		9.06	%		8.95	%		9.14	%		9.15	%		8.94	%		9.15	%
	Tangible equity/Tangible assets		7.29	%		7.41	%		7.28	%		7.40	%		7.35	%		7.29	%		7.35	%
	Common equity tier 1 ratio (Bank)		12.09	%		12.37	%		12.11	%		11.78	%		12.48	%		12.09	%		12.48	%

	END OF PERIOD BALANCES
	Total assets		1,614,491			1,620,064			1,604,598			1,545,367			1,496,263			1,614,491			1,496,263
	Total loans		1,218,789			1,189,559			1,181,135			1,180,591			1,110,545			1,218,789			1,110,545
	Deposits		1,382,864			1,391,147			1,371,823			1,307,244			1,262,522			1,382,864			1,262,522
	Shareholders equity		144,344			146,740			143,655			141,236			136,939			144,344			136,939
	Goodwill and intangibles		28,811			28,870			28,929			28,989			29,048			28,811			29,048
	Tangible equity		115,533			117,870			114,726			112,247			107,891			115,533			107,891
	Mortgage servicing portfolio		1,517,593			1,504,657			1,482,052			1,479,982			1,470,360			1,517,593			1,470,360
	Wealth/Brokerage assets under care		578,292			585,919			556,930			566,004			563,036			578,292			563,036
	Total assets under care		3,710,376			3,710,640			3,643,580			3,591,353			3,529,659			3,710,376			3,529,659
	Full-time equivalent employees		266			258			258			252			253			266			253
	Period end common shares outstanding		6,196			6,191			6,219			6,236			6,268			6,196			6,268
	Market capitalization (all)		177,274			156,436			130,597			138,883			120,907			177,274			120,907

	AVERAGE BALANCES
	Total assets		1,628,195			1,608,355			1,579,781			1,536,215			1,502,389			1,606,315			1,487,251
	Total earning assets		1,521,057			1,521,057			1,479,667			1,436,207			1,404,330			1,502,326			1,387,258
	Total loans		1,217,995			1,193,207			1,186,225			1,158,567			1,104,175			1,199,258			1,091,670
	Deposits		1,393,085			1,381,439			1,347,351			1,299,512			1,270,783			1,373,977			1,256,732
	Shareholders equity		151,417			145,034			144,659			140,315			132,866			147,936			132,426
	Goodwill and intangibles		28,840			28,899			28,959			29,027			29,077			28,899			28,140
	Tangible equity		122,577			116,135			115,700			111,288			103,789			119,037			104,286
	Average basic shares outstanding		6,194			6,205			6,230			6,252			6,297			6,210			6,408
	Average diluted shares outstanding		6,218			6,220			6,243			6,266			6,311			6,230			6,427

SB FINANCIAL GROUP, INC.
	Rate Volume Analysis - (Unaudited)
	For the Three & Nine Months Ended Sep. 30, 2026 and 2025

	($ in thousands)	Three Months Ended Sep. 30, 2026							Three Months Ended Sep. 30, 2025
		Average					Average		Average					Average
Assets		Balance			Interest		Rate		Balance			Interest		Rate

	Taxable securities	$	177,850		$	1,004	2.24	%	$	193,893		$	1,097	2.24	%
	Overnight Cash		120,444			1,145	3.77	%		100,164			1,111	4.40	%
	Nontaxable securities		4,768			36	3.00	%		6,098			35	2.28	%
	Loans, net		1,217,995			18,341	5.97	%		1,104,175			16,566	5.95	%
	Total earning assets		1,521,057			20,526	5.35	%		1,404,330			18,809	5.31	%
	Cash on hand		5,415							5,044
	Allowance for loan losses		(16,515	)						(15,750	)
	Premises and equipment		21,003							21,854
	Other assets		97,235							86,911
	Total assets	$	1,628,195						$	1,502,389

Liabilities
	Savings, MMDA and interest bearing demand	$	845,195		$	4,121	1.93	%	$	753,639		$	3,442	1.81	%
	Time deposits		277,406			2,248	3.22	%		267,984			2,279	3.37	%
	Repurchase agreements & other		7,689			6	0.31	%		14,015			28	0.79	%
	Advances from Federal Home Loan Bank		22,500			230	4.06	%		35,000			369	4.18	%
	Trust preferred securities		10,310			146	5.62	%		10,310			162	6.23	%
	Subordinated debt		19,767			351	7.04	%		19,719			195	3.92	%
	Total interest bearing liabilities		1,182,867			7,102	2.38	%		1,100,667			6,475	2.33	%
	Non interest bearing demand		270,484			-				249,160			-
	Total funding		1,453,351				1.94	%		1,349,827				1.90	%
	Other liabilities		23,427							19,696
	Total liabilities		1,476,778							1,369,523
	Equity		151,417							132,866
	Total liabilities and equity	$	1,628,195						$	1,502,389

	Net interest income				$	13,424						$	12,334

	Net interest income as a percent of average interest-earning assets - GAAP measure						3.50	%						3.48	%

	Net interest income as a percent of average interest-earning assets - non GAAP						3.51	%						3.50	%
	- Computed on a fully tax equivalent (FTE) basis

		Nine Months Ended Sep. 30, 2026							Nine Months Ended Sep. 30, 2025
		Average					Average		Average					Average
Assets		Balance			Interest		Rate		Balance			Interest		Rate

	Taxable securities	$	182,870		$	3,039	2.22	%	$	198,463		$	3,399	2.29	%
	Overnight Cash		115,431			3,224	3.73	%		90,829			3,041	4.48	%
	Nontaxable securities		4,767			108	3.03	%		6,296			108	2.29	%
	Loans, net		1,199,258			53,282	5.94	%		1,091,670			48,100	5.89	%
	Total earning assets		1,502,326			59,653	5.31	%		1,387,258			54,648	5.27	%
	Cash on hand		5,429							4,880
	Allowance for loan losses		(16,398	)						(15,492	)
	Premises and equipment		21,245							21,555
	Other assets		93,713							89,050

	Total assets	$	1,606,315						$	1,487,251

Liabilities
	Savings, MMDA and interest bearing demand	$	831,888		$	11,767	1.89	%	$	734,938		$	9,624	1.75	%
	Time deposits		276,916			6,796	3.28	%		273,508			7,046	3.44	%
	Repurchase agreements & Other		8,341			27	0.43	%		12,549			73	0.78	%
	Advances from Federal Home Loan Bank		24,533			749	4.08	%		35,015			1,097	4.19	%
	Trust preferred securities		10,310			435	5.64	%		10,310			483	6.26	%
	Subordinated debt		19,755			789	5.34	%		19,707			584	3.96	%
	Total interest bearing liabilities		1,171,743			20,563	2.35	%		1,086,027			18,907	2.33	%
	Non interest bearing demand		265,173				1.91	%		248,286				1.89	%
	Total funding		1,436,916							1,334,313
	Other liabilities		21,463							20,512
	Total liabilities		1,458,379							1,354,825
	Equity		147,936							132,426
	Total liabilities and equity	$	1,606,315						$	1,487,251

	Net interest income				$	39,090						$	35,741

	Net interest income as a percent of average interest-earning assets - GAAP measure						3.48	%						3.44	%

	Net interest income as a percent of average interest-earning assets - non GAAP						3.49	%						3.46	%
	- Computed on a fully tax equivalent (FTE) basis

Non-GAAP reconciliation	Three Months Ended						Nine Months Ended

($ in thousands, except per share & ratios)	Sep. 30, 2026			Sep. 30, 2025			Sep. 30, 2026			Sep. 30, 2025

Total Operating Revenue	$	18,075		$	16,578		$	53,440		$	49,140
Adjustment to (deduct)/add OMSR recapture/impairment *		(43	)		301			(398	)		131
Adjusted Total Operating Revenue		18,032			16,879			53,042			49,271


Total Operating Expense		13,157			11,498			37,223			35,760
Adjustment for merger expenses		-			-			-			(726	)
Adjusted Total Operating Expense		13,157			11,498			37,223			35,034


Income before Income Taxes		4,791			4,956			15,577			12,272
Adjustment for OMSR*/Merger Expenses		(43	)		301			(398	)		857
Adjusted Income before Income Taxes		4,748			5,257			15,179			13,129


Provision for Income Taxes		845			910			2,838			2,216
Adjustment for OMSR/Merger Expenses **		(9	)		63			(84	)		180
Adjusted Provision for Income Taxes		836			973			2,754			2,396


Net Income		3,946			4,046			12,739			10,056
Adjustment for OMSR*/Merger Expenses		(34	)		238			(314	)		677
Adjusted Net Income		3,912			4,284			12,425			10,733


Diluted Earnings per Share		0.63			0.64			2.04			1.56
Adjustment for OMSR*/Merger Expenses		(0.01	)		0.04			(0.05	)		0.11
Adjusted Diluted Earnings per Share	$	0.63		$	0.68		$	1.99		$	1.67


Return on Average Assets		0.96	%		1.07	%		1.06	%		0.90	%
Adjustment for OMSR*/Merger Expenses		(0.00	)		0.06	%		-0.03	%		0.06	%
Adjusted Return on Average Assets		0.95	%		1.13	%		1.03	%		0.96	%

*valuation adjustment to the Company's mortgage servicing rights

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