• SB Financial Group Announces Second Quarter 2024 Results

    المصدر: Nasdaq GlobeNewswire / 18 يوليو 2024 16:15:01   America/New_York

    DEFIANCE, Ohio, July 18, 2024 (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 second quarter ended June 30, 2024.

    Second Quarter 2024 Highlights compared to the second quarter of the prior year:

    • Net income of $3.1 million, up 1.2 percent and in line with the same quarter last year. Diluted Earnings Per Share (“EPS”) increased to $0.47 or 6.8% from $0.44;
    • Net interest income totaled $9.7 million, a 1.7 percent decrease from the $9.8 million;
    • Loan growth increased to $1.01 billion, up by $20.6 million or 2.1 percent from the $984.8 million;
    • Return on Average Assets (“ROAA”) increased to 0.93%, up 2 basis points from the previous year, while Return on Average Equity (“ROAE”) declined slightly to 10.16%, down 16 basis points from 10.32%.

    Six Months Ended June 30, 2024 Highlights compared to the same period of the prior year:

    • Mortgage Banking Revenue increased to $3.4 million, up by 22.8 percent from $2.8 million.

    Trailing Twelve Months Ended June 30, 2024 Highlights compared to the prior year:

    • EPS was $1.78 for the twelve months ended June 2024, an increase of 1.1 percent from the prior twelve months of $1.76.
    • Total deposits were $1.12 billion at the end of June 2024, representing an increase of 4.1 percent from $1.07 billion at the end of June 2023.
    • Mortgage origination volume was $218.8 million for the trailing twelve months, with the servicing portfolio of $1.39 billion, which increased by 2.7 percent. 
    Earnings HighlightsThree Months Ended Six Months Ended 
    ($ in thousands, except per share & ratios)Jun. 2024Jun. 2023% Change Jun. 2024Jun. 2023% Change 
    Operating revenue$14,045 $14,190 -1.0% $27,176 $28,180 -3.6% 
    Interest income 15,654  14,406 8.7%  30,954  28,230 9.6% 
    Interest expense 5,995  4,577 31.0%  12,115  8,077 50.0% 
    Net interest income 9,659  9,829 -1.7%  18,839  20,153 -6.5% 
    Provision for credit losses -  145 -100.0%  -  395 0.0% 
    Noninterest income 4,386  4,361 0.6%  8,337  8,027 3.9% 
    Noninterest expense 10,671  10,339 3.2%  20,953  21,112 -0.8% 
    Net income 3,113  3,075 1.2%  5,481  5,525 -0.8% 
    Earnings per diluted share 0.47  0.44 6.8%  0.82  0.79 3.8% 
    Return on average assets 0.93% 0.91%2.2%  0.82% 0.82%0.0% 
    Return on average equity 10.16% 10.32%-1.6%  9.02% 9.01%0.1% 

    "We demonstrated solid execution and financial stability in the quarter ended June 30, 2024," stated Mark A. Klein, Chairman, President, and CEO. "We maintained a net income of $3.1 million, a testament to our operational resilience and our relentless focus on profitability. Notably, our diluted earnings per share increased by 6.8% to $0.47, reflecting our unwavering commitment to delivering shareholder value amidst economic uncertainties."

    "Our loan portfolio expanded to $1.01 billion, an increase of $20.6 million, showcasing our disciplined growth strategy and the strong confidence our clients place in our partnership. Despite ongoing market challenges, our deposit base grew by $44.0 million or 4.1% year-over-year to $1.12 billion, underscoring our margin oversight and the sustained trust of our customers. We continue to maintain a conservative risk profile, with peer leading asset quality and no loan charge-offs," added Mr. Klein.

    RESULTS OF OPERATIONS

    Consolidated Revenue

    In the second quarter of 2024, SB Financial Group demonstrated operational resilience with a slight year-over-year decline in operating revenue of only 1.0%, coupled with an increase of 7.0% from the preceding quarter. Despite a 1.7% decrease in net interest income—largely attributable to elevated deposit costs—our financial management mitigated the impact, resulting in a nominal 5 basis point reduction in our net interest margin when compared to the second quarter of 2023.

    Noninterest income recorded a 0.6% increase over the same quarter last year, fueled by a substantial 20.9% surge in gains from the sale of mortgages and OMSR, alongside a 14.4% increase in mortgage loan servicing fees. Consistent customer service fees further improved our solid revenue base. However, we noted variances in performance across other noninterest income areas, such as wealth management and title insurance services, which saw declines. For the first time in over 2 years, interest expenses decreased on a linked quarter basis, highlighting the stabilization of funding costs.

    Mortgage Loan Business

    In the second quarter of 2024, SB Financial Group’s mortgage loan business recorded a 14.9% increase in loan originations, reaching $75.1 million from $65.4 million in the corresponding period last year. This notable growth underscores some strengthening in the housing market and hopefully signals broader positive economic trends.

    Mortgage sales demonstrated significant expansion this quarter, reaching $55.8 million, or 74% of total originations. This higher level of sales volume, marked a 16.5% year-over-year increase from $47.9 million, underscores our successful market penetration and strategic positioning, particularly in a competitive lending environment. Our mortgage banking net revenue saw an increase to $1.8 million, up 18.8% from the previous year, reflecting our strong operational efficiency. Additionally, the mortgage servicing portfolio expanded by 2.7%, reaching $1.39 billion, which reinforces our dedication to sustainable growth and enhanced servicing capabilities.

    Mr. Klein, Chairman, President, and CEO of SB Financial Group, stated, “This quarter has showcased improved efficiency in our mortgage operations. Although our results slightly missed our internal targets, the shortfall primarily reflects the heightened competitiveness and shifting dynamics within the mortgage market. Despite these challenges, our proactive measures, most notably the expansion of our origination teams, have positioned us to capitalize on market opportunities and maintain our growth momentum.” 

    Mortgage Banking       
    ($ in thousands)Jun. 2024Mar. 2024Dec. 2023Sep. 2023Jun. 2023 Prior Year Growth
    Mortgage originations$75,110 $42,912 $39,566 $61,200 $65,387  $9,723 
    Mortgage sales 55,835  36,623  33,362  54,085  47,933   7,902 
    Mortgage servicing portfolio 1,389,805  1,371,713  1,366,667  1,367,209  1,353,904   35,901 
    Mortgage servicing rights 14,548  14,191  13,906  13,893  13,723   825 
            
            
    Revenue       
    Loan servicing fees 862  855  855  850  844   18 
    OMSR amortization (335) (273) (282) (334) (334)  (1)
    Net administrative fees 527  582  573  516  510   17 
    OMSR valuation adjustment 38  181  (12) (78) (16)  54 
    Net loan servicing fees 565  763  561  438  494   71 
    Gain on sale of mortgages 1,277  781  747  1,207  1,056   221 
    Mortgage banking revenue, net$ 1,842 $ 1,544 $ 1,308 $ 1,645 $ 1,550  $ 292 

    Noninterest Income and Noninterest Expense

    For the second quarter of 2024, noninterest income at SB Financial Group increased slightly to $4.4 million compared to the prior year quarter, marking a modest increase of 0.6%. This growth is primarily attributable to strategic initiatives, including enhanced gain-on-sale yields from mortgage loans and higher recapture of servicing rights, which significantly contributed to our financial performance. Additionally, customer service fees rose marginally, reinforcing our attention in this area. Noninterest expenses for the second quarter were reported at $10.7 million, reflecting a 3.2% increase from the previous year's $10.3 million, as higher commission costs from mortgage volume drove compensation higher. 

    Noninterest Income/Noninterest Expense          
    ($ in thousands, except ratios)Jun. 2024Mar. 2024Dec. 2023Sep. 2023Jun. 2023 Prior Year Growth
    Noninterest Income (NII)$4,386 $3,951 $5,531 $4,163 $4,361  $25 
    NII / Total Revenue 31.5% 30.1% 36.6% 30.4% 30.7%  0.8%
    NII / Average Assets 1.3% 1.2% 1.7% 1.2% 1.3%  0.0%
    Total Revenue Growth -0.6% -6.1% 3.4% -5.3% -0.5%  -0.6%
            
    Noninterest Expense (NIE)$10,671 $10,282 $10,369 $10,481 $10,339  $332 
    Efficiency Ratio 75.9% 78.2% 68.4% 79.0% 72.7%  3.2%
    NIE / Average Assets 3.2% 3.1% 3.1% 3.1% 3.1%  0.1%
    Net Noninterest Expense/Avg. Assets -1.9% -1.9% -1.4% -1.9% -1.8%  -0.1%
    Total Expense Growth 3.2% -4.6% 1.0% 0.9% -4.3%  3.2%

    Mr. Klein commented on the financial performance, stating, “Our noninterest income has shown consistent resilience, supported by significant gains from mortgage and mortgage servicing fees, reflecting our agility and expertise in capitalizing on favorable market conditions. Regarding expenses, the increase this quarter is driven by revenue generation activities. Our focus remains on optimizing our cost structure and ensuring operational efficiency, which is paramount in delivering sustained value to our stakeholders.”

    Balance Sheet

    As of June 30, 2024, SB Financial Group has continued to demonstrate financial stability, with total assets reporting a marginal increase to $1.34 billion, up by 0.06% year-over-year. Our loan portfolio again crossed the $1 billion threshold and now stands at $1.01 billion, marking an increase of $20.6 million or 2.1% compared to the previous year. This growth is indicative of our effective lending practices in a dynamic economic landscape. Furthermore, an increase in cash and cash equivalents has provided enhanced liquidity, further strengthening our financial position.

    Shareholders’ equity experienced a slight quarterly expansion of 1.4% to $125.5 million compared to the linked quarter and also showed positive growth of 6.6% on a year-over-year basis. This growth underscores our consistent efforts to enhance shareholder value amidst fluctuating market conditions.

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

    Loan Balances      
    ($ in thousands, except ratios)Jun. 2024Mar. 2024Dec. 2023Sep. 2023Jun. 2023Annual
    Growth
    Commercial$123,287 $120,016 $126,716 $120,325 $123,226 $61 
    % of Total 12.3% 12.1% 12.7% 12.2% 12.5% 0.0%
    Commercial RE 434,967  429,362  424,041  421,736  417,412  17,555 
    % of Total 43.3% 43.3% 42.4% 42.6% 42.4% 4.2%
    Agriculture 64,329  62,365  65,659  60,928  58,222  6,107 
    % of Total 6.4% 6.3% 6.6% 6.2% 5.9% 10.5%
    Residential RE 316,233  314,668  318,123  320,306  321,365  (5,132)
    % of Total 31.5% 31.7% 31.8% 32.4% 32.6% -1.6%
    Consumer & Other 66,574  65,141  65,673  65,726  64,599  1,975 
    % of Total 6.6% 6.6% 6.6% 6.6% 6.6% 3.1%
    Total Loans$ 1,005,390 $ 991,552 $ 1,000,212 $ 989,021 $ 984,824 $ 20,566 
    Total Growth Percentage        2.1%
           
           
    Deposit Balances      
    ($ in thousands, except ratios)Jun. 2024Mar. 2024Dec. 2023Sep. 2023Jun. 2023Annual
    Growth
    Non-Int DDA$208,244 $219,395 $228,713 $224,182 $218,411 $(10,167)
    % of Total 18.7% 19.7% 21.4% 20.7% 20.4% -4.7%
    Interest DDA 190,857  169,171  166,413  174,729  170,282  20,575 
    % of Total 17.1% 15.2% 15.5% 16.1% 15.9% 12.1%
    Savings 231,855  244,157  216,965  226,077  225,065  6,790 
    % of Total 20.8% 21.9% 20.3% 20.8% 21.0% 3.0%
    Money Market 225,650  221,362  202,605  216,565  217,681  7,969 
    % of Total 20.2% 19.9% 18.9% 20.0% 20.3% 3.7%
    Time Deposits 258,582  258,257  255,509  243,766  239,717  18,865 
    % of Total 23.2% 23.2% 23.9% 22.5% 22.4% 7.9%
    Total Deposits$ 1,115,188 $ 1,112,342 $ 1,070,205 $ 1,085,319 $ 1,071,156 $ 44,032 
    Total Growth Percentage        4.1%

    Asset Quality

    SB Financial Group's dedication to maintaining exceptional asset quality remains evident through the second quarter of 2024. As of June 2024, nonperforming loans constituted 0.47% of total loans, reflecting an increase from 0.25% in the previous quarter. Despite the slight increase in nonperforming loans to total loans, our criticized loan categories are down nearly 23% compared to the prior year and our reserve coverage remains above 325%.

    Moreover, the net loan charge-offs to average loans ratio, annualized at -0.01%, highlights our effective management of loan repayments and the high quality of our credit portfolio. These metrics reinforce our reputation for rigorous risk management and credit excellence.

    Mark A. Klein, Chairman, President, and CEO of SB Financial, commented, “Our second-quarter performance underscores our unwavering commitment to asset quality. Despite a slight increase in nonperforming loans, our substantial allowance for credit losses and effective loan management practices reflects our measured approach to risk management. We are steadfast in ensuring the strength and stability of our loan portfolio, even in the face of economic fluctuations.” 

           
    Nonperforming Assets     Annual
    Change
    ($ in thousands, except ratios)Jun. 2024Mar. 2024Dec. 2023Sep. 2023Jun. 2023
    Commercial & Agriculture$2,781 $897 $748 $717 $170 $2,611 
    % of Total Com./Ag. loans 1.48% 0.49% 0.39% 0.40% 0.09% 1535.9%
    Commercial RE 475  49  168  222  192  283 
    % of Total CRE loans 0.11% 0.01% 0.04% 0.05% 0.05% 147.4%
    Residential RE 1,247  1,295  1,690  2,182  2,266  (1,019)
    % of Total Res. RE loans 0.39% 0.41% 0.53% 0.68% 0.71% -45.0%
    Consumer & Other 231  193  212  208  282  (51)
    % of Total Con./Oth. loans 0.35% 0.30% 0.32% 0.32% 0.44% -18.1%
    Total Nonaccruing Loans 4,734  2,434  2,818  3,329  2,910  1,824 
    % of Total loans 0.47% 0.25% 0.28% 0.34% 0.30% 62.7%
    Foreclosed Assets and Other Assets 510  510  511  629  625  (115)
    Total Change (%)      -18.4%
    Total Nonperforming Assets$5,244 $2,944 $3,329 $3,958 $3,535 $1,709 
    % of Total assets 0.39% 0.22% 0.25% 0.30% 0.26% 48.35%
           

    Webcast and Conference Call

    The Company will hold the second quarter 2024 earnings conference call and webcast on July 19, 2024, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

    About SB Financial Group

    Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 23 offices: 22 in nine Ohio counties and one in Fort Wayne, Indiana, and 23 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State region. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

    Forward-Looking Statements

    Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

    Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment 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)
               
      June March December September June
    ($ in thousands)  2024   2024   2023   2023   2023 
               
    ASSETS          
    Cash and due from banks $21,983  $26,602  $22,965  $19,049  $20,993 
    Interest bearing time deposits  2,417   2,417   1,535   1,180   1,180 
    Available-for-sale securities  208,156   213,239   219,708   212,768   227,996 
    Loans held for sale  7,864   4,730   2,525   3,206   5,684 
    Loans, net of unearned income  1,005,390   991,552   1,000,212   989,021   984,824 
    Allowance for credit losses  (15,612)  (15,643)  (15,786)  (15,790)  (15,795)
    Premises and equipment, net  20,860   20,985   21,378   21,934   22,230 
    Federal Reserve and FHLB Stock, at cost  5,204   6,512   7,279   6,261   7,634 
    Foreclosed assets and other assets  510   510   511   629   625 
    Interest receivable  4,821   3,706   4,657   6,673   4,079 
    Goodwill  23,239   23,239   23,239   23,239   23,239 
    Cash value of life insurance  30,294   30,103   29,121   29,291   29,183 
    Mortgage servicing rights  14,548   14,191   13,906   13,893   13,723 
    Other assets  12,512   13,869   11,999   15,120   15,840 
               
    Total assets $1,342,186  $1,336,012  $1,343,249  $1,326,474  $1,341,435 
               
               
               
    LIABILITIES AND SHAREHOLDERS' EQUITY          
    Deposits          
    Non interest bearing demand $208,244  $219,395  $228,713  $224,182  $218,411 
    Interest bearing demand  190,857   169,171   166,413   174,729   170,282 
    Savings  231,855   244,157   216,965   226,077   225,065 
    Money market  225,650   221,362   202,605   216,565   217,681 
    Time deposits  258,582   258,257   255,509   243,766   239,717 
               
    Total deposits  1,115,188   1,112,342   1,070,205   1,085,319   1,071,156 
               
    Short-term borrowings  15,178   12,916   13,387   16,519   21,118 
    Federal Home Loan Bank advances  35,000   35,000   83,600   59,500   81,300 
    Trust preferred securities  10,310   10,310   10,310   10,310   10,310 
    Subordinated debt net of issuance costs  19,666   19,654   19,642   19,630   19,618 
    Interest payable  2,944   2,772   2,443   2,216   1,866 
    Other liabilities  18,421   19,295   19,320   20,632   18,401 
               
    Total liabilities  1,216,707   1,212,289   1,218,907   1,214,126   1,223,769 
               
    Shareholders' Equity          
    Common stock  61,319   61,319   61,319   61,319   61,319 
    Additional paid-in capital  15,195   14,978   15,124   15,037   15,154 
    Retained earnings  112,104   109,938   108,486   105,521   103,725 
    Accumulated other comprehensive loss  (31,801)  (31,547)  (29,831)  (39,517)  (32,894)
    Treasury stock  (31,338)  (30,965)  (30,756)  (30,012)  (29,638)
               
    Total shareholders' equity  125,479   123,723   124,342   112,348   117,666 
               
    Total liabilities and shareholders' equity$1,342,186  $1,336,012  $1,343,249  $1,326,474  $1,341,435 
               



    SB FINANCIAL GROUP, INC.
    CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
                    
    ($ in thousands, except per share & ratios) At and for the Three Months Ended Six Months Ended 
                    
      June March December September June June June 
    Interest income  2024  2024  2023   2023   2023  2024  2023 
    Loans               
      Taxable $13,883 $13,547 $13,438  $13,128  $12,715 $27,430 $24,841 
      Tax exempt  124  123  124   122   121  247  237 
    Securities               
      Taxable  1,610  1,593  1,526   1,507   1,524  3,203  3,059 
      Tax exempt  37  37  38   39   46  74  93 
                    
    Total interest income   15,654  15,300  15,126   14,796   14,406  30,954  28,230 
                    
    Interest expense               
    Deposits  5,208  5,090  4,398   4,194   3,538  10,298  6,116 
    Repurchase agreements & other  36  34  39   16   9  70  19 
    Federal Home Loan Bank advances 370  613  720   666   664  983  1,217 
    Trust preferred securities  187  188  191   189   172  375  336 
    Subordinated debt  194  195  194   195   194  389  389 
                    
    Total interest expense   5,995  6,120  5,542   5,260   4,577  12,115  8,077 
                    
                    
    Net interest income  9,659  9,180  9,584   9,536   9,829  18,839  20,153 
                    
    Provision for credit losses  -  -  (74)  (6)  145  -  395 
                    
    Net interest income after provision               
      for loan losses  9,659  9,180  9,658   9,542   9,684  18,839  19,758 
                    
    Noninterest income               
    Wealth management fees  848  865  838   837   940  1,713  1,857 
    Customer service fees  875  880  844   863   871  1,755  1,696 
    Gain on sale of mtg. loans & OMSR 1,277  781  747   1,207   1,056  2,058  1,655 
    Mortgage loan servicing fees, net  565  763  561   438   494  1,328  1,102 
    Gain on sale of non-mortgage loans 105  10  177   10   218  115  242 
    Title insurance revenue  406  266  378   429   455  672  828 
    Net gain on sales of securities  -  -  1,453   -   -  -  - 
    Gain (loss) on sale of assets  -  -  16   -   15  -  4 
    Other  310  386  517   379   312  696  643 
                    
    Total interest income   4,386  3,951  5,531   4,163   4,361  8,337  8,027 
                    
    Noninterest expense               
    Salaries and employee benefits  6,009  5,352  5,652   5,491   5,721  11,361  11,634 
    Net occupancy expense  707  769  746   764   802  1,476  1,586 
    Equipment expense  1,060  1,077  1,027   1,068   1,002  2,137  1,983 
    Data processing fees  727  769  680   648   685  1,496  1,331 
    Professional fees  615  758  926   623   612  1,373  1,475 
    Marketing expense  176  197  182   189   213  373  411 
    Telephone and communication expense  156  105  132   124   124  261  245 
    Postage and delivery expense  89  97  167   100   78  186  165 
    State, local and other taxes  230  245  285   218   218  475  446 
    Employee expense  159  178  146   141   156  337  344 
    Other expenses  743  735  426   1,115   728  1,478  1,492 
                    
    Total interest expense   10,671  10,282  10,369   10,481   10,339  20,953  21,112 
                    
                    
    Income before income tax expense  3,374  2,849  4,820   3,224   3,706  6,223  6,673 
                    
    Income tax expense  261  481  937   537   631  742  1,148 
                    
      $3,113 $2,368 $3,883  $2,687  $3,075 $5,481 $5,525 
                    
    Common share data:               
    Basic earnings per common share $0.47 $0.35 $0.58  $0.40  $0.45 $0.82 $0.80 
                    
    Diluted earnings per common share$0.47 $0.35 $0.57  $0.39  $0.44 $0.82 $0.79 
                    
    Average shares outstanding (in thousands):               
    Basic:  6,692  6,715  6,748   6,791   6,847  6,703  6,890 
    Diluted:  6,700  6,723  6,851   6,878   6,910  6,715  6,976 
                    



    SB FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
                   
    ($ in thousands, except per share & ratios)At and for the Three Months Ended Six Months Ended
                   
      June March December September June June June
    SUMMARY OF OPERATIONS  2024   2024   2023   2023   2023   2024   2023 
                   
       Net interest income $9,659  $9,180  $9,584  $9,536  $9,829  $18,839  $20,153 
             Tax-equivalent adjustment  43   43   43   43   44   85   88 
       Tax-equivalent net interest income  9,702   9,223   9,627   9,579   9,873   18,924   20,241 
       Provision for credit loss  -   -   (74)  (6)  145   -   395 
       Noninterest income  4,386   3,951   5,531   4,163   4,361   8,337   8,027 
       Total operating revenue  14,045   13,131   15,115   13,699   14,190   27,176   28,180 
       Noninterest expense  10,671   10,282   10,369   10,481   10,339   20,953   21,112 
       Pre-tax pre-provision income  3,374   2,849   4,746   3,218   3,851   6,223   7,068 
       Net income  3,113   2,368   3,883   2,687   3,075   5,481   5,525 
                   
    PER SHARE INFORMATION:              
       Basic earnings per share (EPS)  0.47   0.35   0.58   0.40   0.45   0.82   0.80 
       Diluted earnings per share  0.47   0.35   0.57   0.39   0.44   0.82   0.79 
       Common dividends  0.140   0.135   0.135   0.130   0.130   0.275   0.255 
       Book value per common share  18.80   18.46   18.50   16.59   17.30   18.80   17.30 
       Tangible book value per common share (TBV)  15.26   14.93   14.98   13.09   13.81   15.26   13.81 
       Market price per common share  14.00   13.78   15.35   13.50   12.62   14.00   12.62 
       Market price to TBV  91.8%  92.3%  102.5%  103.1%  91.4%  91.8%  91.4%
       Market price to trailing 12 month EPS  7.9   7.9   8.8   8.0   7.1   7.9   7.1 
                   
    PERFORMANCE RATIOS:              
       Return on average assets (ROAA)  0.93%  0.71%  1.17%  0.80%  0.91%  0.82%  0.82%
       Pre-tax pre-provision ROAA  1.01%  0.85%  1.43%  0.96%  1.14%  1.00%  1.14%
       Return on average equity (ROE)  10.16%  7.70%  13.23%  9.25%  10.32%  9.02%  9.01%
       Return on average tangible equity  12.59%  9.53%  16.57%  11.62%  12.89%  11.21%  11.18%
       Efficiency ratio  75.86%  78.17%  68.44%  79.00%  72.71%  76.98%  74.77%
       Earning asset yield  5.02%  4.97%  4.89%  4.78%  4.61%  4.96%  4.54%
       Cost of interest bearing liabilities  2.47%  2.55%  2.33%  2.18%  1.90%  2.51%  1.69%
       Net interest margin  3.10%  2.98%  3.10%  3.08%  3.15%  3.02%  3.24%
       Tax equivalent effect  0.01%  0.01%  0.01%  0.01%  0.01%  0.02%  0.02%
       Net interest margin, tax equivalent  3.11%  2.99%  3.11%  3.09%  3.16%  3.04%  3.26%
       Non interest income/Average assets  1.31%  1.19%  1.67%  1.24%  1.30%  1.25%  1.20%
       Non interest expense/Average assets  3.18%  3.08%  3.12%  3.13%  3.07%  3.13%  3.15%
       Net noninterest expense/Average assets  -1.87%  -1.90%  -1.46%  -1.89%  -1.78%  -1.89%  -1.95%
                   
    ASSET QUALITY RATIOS:              
       Gross charge-offs  -   66   5   12   32   66   101 
       Recoveries  16   9   1   7   10   25   18 
       Net charge-offs  (16)  57   4   5   22   41   83 
       Nonperforming loans/Total loans  0.47%  0.25%  0.28%  0.34%  0.30%  0.47%  0.30%
       Nonperforming assets/Loans & OREO  0.52%  0.30%  0.33%  0.40%  0.36%  0.52%  0.36%
       Nonperforming assets/Total assets  0.39%  0.22%  0.25%  0.30%  0.26%  0.39%  0.26%
       Allowance for credit loss/Nonperforming loans  329.78%  642.69%  560.18%  474.32%  542.78%  329.78%  542.78%
       Allowance for credit loss/Total loans  1.55%  1.58%  1.58%  1.60%  1.60%  1.55%  1.60%
       Net loan charge-offs/Average loans (ann.)  (0.01%)  0.02%  0.00%  0.00%  0.01%  0.01%  0.02%
                   
    CAPITAL & LIQUIDITY RATIOS:              
       Loans/ Deposits  90.15%  89.14%  93.46%  91.13%  91.94%  90.15%  91.94%
       Equity/ Assets  9.35%  9.26%  9.26%  8.47%  8.77%  9.35%  8.77%
       Tangible equity/Tangible assets  7.72%  7.63%  7.63%  6.81%  7.13%  7.72%  7.13%
       Common equity tier 1 ratio (Bank)  13.89%  13.84%  13.42%  13.56%  13.18%  13.89%  13.18%
                   
    END OF PERIOD BALANCES              
       Total assets  1,342,186   1,336,012   1,343,249   1,326,474   1,341,435   1,342,186   1,341,435 
       Total loans  1,005,390   991,552   1,000,212   989,021   984,824   1,005,390   984,824 
       Deposits  1,115,188   1,112,342   1,070,205   1,085,319   1,071,156   1,115,188   1,071,156 
       Shareholders equity  125,479   123,723   124,342   112,348   117,666   125,479   117,666 
       Goodwill and intangibles  23,630   23,646   23,662   23,687   23,710   23,630   23,710 
       Tangible equity  101,849   100,077   100,680   88,661   93,956   101,849   93,956 
       Mortgage servicing portfolio  1,389,805   1,371,713   1,366,667   1,367,209   1,353,904   1,389,805   1,353,904 
       Wealth/Brokerage assets under care  525,713   525,517   501,829   478,236   499,255   525,713   499,255 
       Total assets under care  3,257,704   3,233,242   3,211,745   3,171,919   3,194,594   3,257,704   3,194,594 
       Full-time equivalent employees  249   245   251   252   253   249   253 
       Period end common shares outstanding  6,676   6,702   6,720   6,773   6,803   6,676   6,803 
       Market capitalization (all)  93,458   92,359   103,147   91,437   85,857   93,458   85,857 
                   
    AVERAGE BALANCES              
       Total assets  1,342,847   1,333,236   1,327,415   1,339,870   1,346,010   1,337,244   1,341,918 
       Total earning assets  1,246,099   1,230,736   1,236,165   1,239,145   1,248,813   1,246,956   1,243,540 
       Total loans  1,005,018   993,310   992,337   989,089   988,348   999,164   979,629 
       Deposits  1,120,367   1,091,803   1,084,939   1,095,414   1,100,344   1,106,633   1,098,647 
       Shareholders equity  122,510   123,058   117,397   116,165   119,177   121,474   122,601 
       Goodwill and intangibles  23,638   23,654   23,675   23,698   23,721   23,646   23,732 
       Tangible equity  98,872   99,404   93,722   92,467   95,456   97,828   98,869 
       Average basic shares outstanding  6,692   6,715   6,748   6,791   6,847   6,703   6,890 
       Average diluted shares outstanding  6,700   6,723   6,851   6,878   6,910   6,715   6,976 
                   



    SB FINANCIAL GROUP, INC.
    Rate Volume Analysis - (Unaudited)
    For the Three Months Ended June 30, 2024 and 2023
          
    ($ in thousands) Three Months Ended June 30, 2024  Three Months Ended June 30, 2023
      Average Average  Average Average
    Assets BalanceInterestRate  BalanceInterestRate
              
    Taxable securities/cash $236,320 $1,6102.73%  $252,899 $1,5242.41%
    Nontaxable securities  4,761  373.11%   7,566  462.43%
    Loans, net  1,005,018  14,0075.57%   988,348  12,8365.19%
              
           Total earning assets  1,246,099  15,6545.02%   1,248,813  14,4064.61%
              
    Cash and due from banks  4,448      3,952   
    Allowance for loan losses  (15,647)     (15,556)  
    Premises and equipment  20,978      22,529   
    Other assets  86,969      86,272   
              
          Total assets $1,342,847     $1,346,010   
              
    Liabilities         
    Savings, MMDA and interest bearing demand$637,561 $2,7761.74%  $621,999 $1,8501.19%
    Time deposits  257,359  2,4323.78%   239,532  1,6882.82%
    Repurchase agreements & other  12,050  361.20%   15,064  90.24%
    Advances from Federal Home Loan Bank  35,374  3704.18%   57,495  6644.62%
    Trust preferred securities  10,310  1877.26%   10,310  1726.67%
    Subordinated debt  19,658  1943.95%   19,610  1943.96%
              
          Total interest bearing liabilities  972,312  5,9952.47%   964,010  4,5771.90%
              
    Non interest bearing demand  225,447  -    238,813  - 
              
          Total funding  1,197,759  2.00%   1,202,823  1.52%
        44.20%    1 
    Other liabilities  22,578      20,301   
              
          Total liabilities  1,220,337      1,223,124   
              
    Equity  122,510      122,886   
              
          Total liabilities and equity $1,342,847     $1,346,010  - 
              
    Net interest income  $9,659    $9,829 
              
    Net interest income as a percent of average interest-earning assets - GAAP measure   3.10%    3.15%
              
    Net interest income as a percent of average interest-earning assets - non GAAP3.11%    3.16%
     - Computed on a fully tax equivalent (FTE) basis       
              
      Six Months Ended June 30, 2024  Six Months Ended June 30, 2023
      Average Average  Average Average
    Assets BalanceInterestRate  BalanceInterestRate
              
    Taxable securities/cash $243,032 $3,2032.64%  $256,250 $3,0592.39%
    Nontaxable securities  4,760  743.11%   7,661  932.43%
    Loans, net  999,164  27,6775.54%   979,629  25,0785.12%
              
           Total earning assets  1,246,956  30,9544.96%   1,243,540  28,2304.54%
              
    Cash and due from banks  4,479      4,019   
    Allowance for loan losses  (15,739)     (15,162)  
    Premises and equipment  21,130      22,692   
    Other assets  80,418      86,829   
              
          Total assets $1,337,244     $1,341,918   
              
    Liabilities         
    Savings, MMDA and interest bearing demand$621,950 $5,3011.70%  $629,061 $3,1351.00%
    Time deposits  257,975  4,9973.87%   227,343  2,9812.62%
    Repurchase agreements & Other  14,021  701.00%   16,832  190.23%
    Advances from Federal Home Loan Bank  43,202  9834.55%   53,359  1,2174.56%
    Trust preferred securities  10,310  3757.27%   10,310  3366.52%
    Subordinated debt  19,652  3893.96%   19,604  3893.97%
              
          Total interest bearing liabilities  967,110  12,1152.51%   956,509  8,0771.69%
              
    Non interest bearing demand  226,708  2.03%   242,243  1.35%
              
          Total funding  1,193,818      1,198,752   
              
    Other liabilities  27,863      20,565   
              
          Total liabilities  1,221,681      1,219,317   
              
    Equity  121,474      122,601   
              
          Total liabilities and equity $1,343,155     $1,341,918   
              
    Net interest income  $18,839    $20,153 
              
    Net interest income as a percent of average interest-earning assets - GAAP measure   3.02%    3.24%
              
    Net interest income as a percent of average interest-earning assets - non GAAP3.04%    3.26%
     - Computed on a fully tax equivalent (FTE) basis       
              



    Non-GAAP reconciliation Three Months Ended Six Months Ended
             
    ($ in thousands, except per share & ratios) June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
             
    Total Operating Revenue $14,045  $14,190  $27,176  $28,180 
    Adjustment to (deduct)/add OMSR recapture/impairment * (38)  16   (219)  (39)
             
    Adjusted Total Operating Revenue  14,007   14,206   26,957   28,141 
             
             
    Income before Income Taxes  3,374   3,706   6,223   6,673 
    Adjustment for OMSR *  (38)  16   (219)  (39)
             
    Adjusted Income before Income Taxes  3,336   3,722   6,004   6,634 
             
             
    Provision for Income Taxes  261   631   742   1,148 
    Adjustment for OMSR **  (8)  3   (46)  (8)
             
    Adjusted Provision for Income Taxes  253   634   696   1,140 
             
             
    Net Income  3,113   3,075   5,481   5,525 
    Adjustment for OMSR *  (30)  13   (173)  (31)
             
    Adjusted Net Income  3,083   3,088   5,308   5,494 
             
             
    Diluted Earnings per Share  0.47   0.44   0.82   0.79 
    Adjustment for OMSR *  (0.01)  0.01   (0.03)  (0.00)
             
    Adjusted Diluted Earnings per Share $0.46  $0.45  $0.79  $0.79 
             
             
    Return on Average Assets  0.93%  0.91%  0.82%  0.82%
    Adjustment for OMSR *  -0.01%  0.00%  -0.01%  -0.00%
             
    Adjusted Return on Average Assets  0.92%  0.92%  0.81%  0.82%
             
    *valuation adjustment to the Company's mortgage servicing rights      
             
    **tax effect is calculated using a 21% statutory federal corporate income tax rate    
             

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