• SB Financial Group Announces First Quarter 2024 Results

    ソース: Nasdaq GlobeNewswire / 18 4 2024 16:15:01   America/New_York

    DEFIANCE, Ohio, April 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 first quarter and ended March 31, 2024.

    First Quarter 2024 Highlights Over the First Quarter Prior Year Include:

    • Net income of $2.4 million down 3.3 percent from $2.5 million in the same quarter last year. Diluted Earnings Per Share (“EPS”) remained steady at $0.35.
    • Net interest income totaled $9.2 million, a 11.1 percent decrease from the $10.3 million reported in the first quarter of the prior year.
    • Loan growth saw an increase to $991.6 million, up by $15.2 million or 1.6 percent from the $976.3 million in the first quarter of the previous year.
    • Nonperforming assets improved to 0.22 percent of total assets, down from 0.30 percent in the same quarter of the prior year.

    Trailing Twelve Months Ended March 31, 2024 Highlights Compared to the Prior Year Include:

    • EPS was $1.75 for the twelve months ended March 2024, an increase of 1.7 percent from the prior twelve months of $1.72.
    • Total deposits were $1.112 billion at the end of March 2024, representing a marginal increase of 0.2 percent from $1.110 billion at the end of March 2023.
    • Mortgage origination volume was $209.1 million for the trailing twelve months, with a servicing portfolio of $1.37 billion, which increased by 2.1 percent from the prior year.
    Earnings HighlightsThree Months Ended
    ($ in thousands, except per share & ratios)Mar. 2024 Mar. 2023 % Change
    Operating revenue$13,131  $13,990  -6.1%
    Interest income15,300  13,824  10.7%
    Interest expense6,120  3,500  74.9%
    Net interest income9,180  10,324  -11.1%
    Provision for credit losses-  250  -100.0%
    Noninterest income3,951  3,666  7.8%
    Noninterest expense10,282  10,773  -4.6%
    Net income2,368  2,450  -3.3%
    Earnings per diluted share0.35  0.35  0.0%
    Return on average assets0.71% 0.73% -2.7%
    Return on average equity7.70% 8.22% -6.3%
             

    "SB Financial Group has demonstrated operational resilience and a keen strategic focus amid the challenging economic conditions during the quarter ended March 31, 2024," stated Mark A. Klein, Chairman, President, and CEO. "Despite a marginal decline in net income from $2.5 million last year to $2.4 million, our operational adaptability ensured solid profitability, with diluted earnings per share consistently at $0.35. This consistency reflects our unwavering commitment to shareholder value even as we navigate through economic headwinds."

    "Our loan portfolio expanded to $991.6 million, an increase of $15.2 million, underscoring our disciplined approach to growth and the deep trust our clients place in us. Despite broader market challenges, our deposit base remained stable at $1.11 billion, showcasing our effective management and the enduring strength of our customer relationships. We maintained a conservative risk profile, with notable improvements in asset quality and no significant charge-offs," Mr. Klein noted.

    RESULTS OF OPERATIONS

    Consolidated Revenue

    In the first quarter of 2024, SB Financial Group’s total operating revenue, encompassing net interest income before provision for credit losses and noninterest income, faced significant economic headwinds. Our operating revenue saw a decline of 6.1 percent from the prior year quarter and 13.1 percent from the linked quarter. Although robust, net interest income decreased by 11.1 percent compared to the same period last year, primarily due to increased deposit and funding costs. This also contributed to a 38 basis-point reduction in our net interest margin 1Q 2024 compared to 1Q2023.

    Noninterest income, however, showed a positive trajectory, increasing by 7.8 percent from the same quarter last year. This growth was significantly bolstered by a 30.4 percent increase in gains from the sale of mortgages and OMSR. Additionally, mortgage loan servicing fees saw a substantial increase of 25.5 percent. These gains, along with steady customer service fees, built a solid revenue foundation. Despite these strengths, we observed a downturn in revenues from wealth management and title insurance, illustrating the varied performance across our noninterest income streams.

    Amid these variances, our strategic focus remains firm. We are dedicated to maintaining a balanced revenue portfolio and dynamically adjusting our strategies to effectively respond to the economic environment. This approach is vital for continuing to create value for our clients and shareholders and demonstrates our commitment to navigating cyclical economic challenges with resilience and foresight.

    Mortgage Loan Business

    Mortgage loan originations for the first quarter of 2024 totaled $42.9 million, experiencing a contraction from the $49.4 million recorded in the same quarter of the previous year. This downturn reflects the cooling trends within the housing market, indicative of broader economic shifts. Despite this challenging environment, SB Financial Group's strategic agility was evident, with mortgage sales climbing to $36.6 million, or 85 percent of production. This represents an increase of $10.8 million, or approximately 41.9 percent, from the $25.8 million recorded in the prior year quarter, showcasing our ability to capitalize on opportunities within the purchase market.

    For this quarter, our mortgage banking net revenue stood at $1.5 million, demonstrating solid performance and an improvement of $0.2 million, or 20.3 percent, from the prior year. This growth, indicative of the robustness of our mortgage servicing operations, is further underscored by the consistent expansion of our servicing portfolio, which grew by 2.0 percent compared to the prior year period, reaching $1.37 billion.

    "In a period marked by variable interest rates and a cautious market, SB Financial Group's mortgage banking sector has continued to demonstrate resilience," said Mr. Klein. "The upward trend in mortgage sales, despite a decrease in originations, attests to our team’s market presence and strong brand. Our increased net mortgage banking revenue and the expansion of our servicing portfolio reflect our ongoing commitment to this business line.”

    Mortgage Banking                 
    ($ in thousands)Mar. 2024 Dec. 2023 Sep. 2023 Jun. 2023 Mar. 2023 Prior Year Growth
    Mortgage originations$42,912  $39,566  $61,200  $65,387  $49,366  $(6,454)
    Mortgage sales36,623  33,362  54,085  47,933  25,803  10,820 
    Mortgage servicing portfolio1,371,713  1,366,667  1,367,209  1,353,904  1,344,158  27,555 
    Mortgage servicing rights14,191  13,906  13,893  13,723  13,548  643 
                      
                      
    Revenue                 
    Loan servicing fees763  855  850  844  844  (81)
    OMSR amortization(273) (282) (334) (334) (292) 19 
    Net administrative fees490  573  516  510  552  (62)
    OMSR valuation adjustment181  (12) (78) (16) 56  125 
    Net loan servicing fees671  561  438  494  608  63 
    Gain on sale of mortgages781  747  1,207  1,056  599  182 
    Mortgage banking revenue, net$          1,452  $          1,308  $          1,645  $          1,550  $          1,207  $            245 
                      

    Noninterest Income and Noninterest Expense

    For the first quarter of 2024, noninterest income at SB Financial Group surged to $4.0 million, marking a 7.8% increase from the $3.7 million recorded in the prior year quarter. This notable growth is primarily attributable to our 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 by $55,000, or 6.7 percent, further reinforcing our strategic focus in this area.

    Noninterest expenses for the first quarter were reported at $10.3 million, a reduction of 4.6 percent from the previous year's $10.8 million. This decrease demonstrates our commitment to reducing costs and enhancing operational efficiency, even in a complex and challenging economic environment.

    "Our noninterest income has shown consistent growth compared to the same period last year." commented Mr. Klein. "The gains from both mortgage and mortgage servicing fees have been significant, reflecting our agility and expertise in capitalizing on favorable market conditions. On the expense front, we continued to reduce our noninterest expenses, reflecting a diligent and calculated approach to cost management. Our ongoing efforts are focused on maintaining an efficient operational structure, paramount in delivering sustained value to our stakeholders."

    Noninterest Income/Noninterest Expense                  
    ($ in thousands, except ratios)Mar. 2024 Dec. 2023 Sep. 2023 Jun. 2023 Mar. 2023 Prior Year Growth
    Noninterest Income (NII)$3,951  $5,531  $4,163  $4,361  $3,666  $285 
    NII / Total Revenue30.1% 36.6% 30.4% 30.7% 26.2% 3.9%
    NII / Average Assets1.2% 1.7% 1.2% 1.3% 1.1% 0.1%
    Total Revenue Growth-6.1% 3.4% -5.3% -0.5% -2.0% -6.1%
                      
    Noninterest Expense (NIE)$10,282  $10,369  $10,481  $10,339  $10,773  $(491)
    Efficiency Ratio78.2% 68.4% 76.4% 72.7% 76.9% 1.3%
    NIE / Average Assets3.1% 3.1% 3.1% 3.1% 3.2% -0.1%
    Net Noninterest Expense/Avg. Assets-1.9% -1.4% -1.9% -1.8% -2.1% 0.2%
    Total Expense Growth-4.6% 1.0% 0.9% -4.3% -0.8% -4.6%
                      

    Balance Sheet

    As of March 31, 2024, SB Financial Group has continued to exhibit financial stability, with total assets amounting to $1.34 billion, reflecting a marginal year-over-year decrease of 0.39 percent. Our loan portfolio, which notably surpassed the $1 billion mark in the linked quarter, adjusted to $991.6 million for the first quarter of 2024. Despite this slight retraction, the total loans have increased by $15.2 million, or 1.6 percent compared to the prior year, demonstrating our commitment to prudent lending and strategic asset management amid evolving economic conditions. Additionally, our cash and cash equivalents have been increasing, providing enhanced liquidity and further stabilizing our financial base.

    Shareholders’ equity has slightly contracted by 0.5 percent to $123.7 million compared to the linked quarter. However, the 3.3% growth, year-over-year, is a positive testament to our ongoing efforts to enhance value for our shareholders.

    Mark Klein, remarked, “As we navigate the first quarter of 2024, SB Financial Group remains committed to a disciplined approach to growth, ensuring robust asset quality and maintaining a formidable loan portfolio. Despite a competitive landscape, our loan portfolio has demonstrated resilience, underlining the effectiveness of our relationship-driven lending strategy. This performance is anchored by our dedication to our shareholders, as evidenced by the annual increase in our dividend payout. We are poised to continue capitalizing on strategic opportunities to further strengthen our financial position and deliver sustained shareholder value.”

    Loan Balances                       
    ($ in thousands, except ratios)Mar. 2024 Dec. 2023 Sep. 2023 Jun. 2023 Mar. 2023 Annual Growth
    Commercial$120,016  $126,716  $120,325  $123,226  $126,066  $(6,050)
    % of Total12.1% 12.7% 12.2% 12.5% 12.9% -4.8%
    Commercial RE429,362  424,041  421,736  417,412  419,024  10,338 
    % of Total43.3% 42.4% 42.6% 42.4% 42.9% 2.5%
    Agriculture62,365  65,659  60,928  58,222  57,761  4,604 
    % of Total6.3% 6.6% 6.2% 5.9% 5.9% 8.0%
    Residential RE314,668  318,123  320,306  321,365  309,684  4,984 
    % of Total31.7% 31.8% 32.4% 32.6% 31.7% 1.6%
    Consumer & Other65,141  65,673  65,726  64,599  63,777  1,364 
    % of Total6.6% 6.6% 6.6% 6.6% 6.5% 2.1%
    Total Loans$991,552  $1,000,212  $989,021  $984,824  $976,312  $15,240 
    Total Growth Percentage               1.6%
                      
                      
    Deposit Balances                 
    ($ in thousands, except ratios)Mar. 2024 Dec. 2023 Sep. 2023 Jun. 2023 Mar. 2023 Annual Growth
    Non-Int DDA$219,395  $228,713  $224,182  $218,411  $237,175  $(17,780)
    % of Total19.7% 21.4% 20.7% 20.4% 21.4% -7.5%
    Interest DDA169,171  166,413  174,729  170,282  188,497  (19,326)
    % of Total15.2% 15.5% 16.1% 15.9% 17.0% -10.3%
    Savings244,157  216,965  226,077  225,065  227,974  16,183 
    % of Total21.9% 20.3% 20.8% 21.0% 20.5% 7.1%
    Money Market221,362  202,605  216,565  217,681  222,203  (841)
    % of Total19.9% 18.9% 20.0% 20.3% 20.0% -0.4%
    Time Deposits258,257  255,509  243,766  239,717  234,295  23,962 
    % of Total23.2% 23.9% 22.5% 22.4% 21.1% 10.2%
    Total Deposits$1,112,342  $1,070,205  $1,085,319  $1,071,156  $1,110,144  $2,198 
    Total Growth Percentage               0.2%
                      

    Asset Quality

    SB Financial Group has consistently prioritized exceptional asset quality, a commitment that has remained steadfast through the first quarter of 2024. As of March 2024, our reports showcase a robust position, with nonperforming loans constituting a mere 0.25% of total loans—a clear testament to the enduring strength and soundness of our lending practices. This represents a significant improvement, with a 10 basis point reduction from the previous year, which reported nonperforming loans at 0.35% of total loans.

    Significantly, the allowance for credit losses to nonperforming loans ratio has reached a strong 643 percent. This not only emphasizes our proactive and preemptive measures in managing asset quality but also exceeds the performance benchmark set in the previous year. This ratio reflects our structured approach to risk management, which is aligned with the Current Expected Credit Loss (CECL) methodology, ensuring we remain well-prepared for any contingencies.

    Furthermore, the net loan charge-offs to average loans ratio, annualized at 0.02%, underlines our effective handling of loan repayments and the high quality of our credit portfolio. With such solid metrics, we continue to uphold our strong reputation for risk management and credit excellence.

    Mark A. Klein, Chairman, President, and CEO of SB Financial, noted, “Our commitment to asset quality is unwavering and clearly evident in our first-quarter performance. The strength of our loan portfolio is reflected in the low percentage of nonperforming loans and a substantial allowance for potential credit losses, demonstrating our vigilant approach to asset management and our resilience in the face of economic variables."

    Nonperforming Assets                 
    ($ in thousands, except ratios)Mar. 2024 Dec. 2023 Sep. 2023 Jun. 2023 Mar. 2023 Annual Change
    Commercial & Agriculture$897  $748  $717  $170  $185  $712 
    % of Total Com./Ag. loans0.49% 0.39% 0.40% 0.09% 0.10% 384.9%
    Commercial RE49  168  222  192  199  (150)
    % of Total CRE loans0.01% 0.04% 0.05% 0.05% 0.05% -75.4%
    Residential RE1,295  1,690  2,182  2,266  2,742  (1,447)
    % of Total Res. RE loans0.41% 0.53% 0.68% 0.71% 0.89% -52.8%
    Consumer & Other193  212  208  282  270  (77)
    % of Total Con./Oth. loans0.30% 0.32% 0.32% 0.44% 0.42% -28.5%
    Total Nonaccruing Loans2,434  2,818  3,329  2,910  3,396  (962)
    % of Total loans0.25% 0.28% 0.34% 0.30% 0.35% -28.3%
    Foreclosed Assets and Other Assets510  511  629  625  650  (140)
    Total Change (%)               -21.5%
    Total Nonperforming Assets$2,944  $3,329  $3,958  $3,535  $4,046  $(1,102)
    % of Total assets0.22% 0.25% 0.30% 0.26% 0.30% -27.24%
                      

    Webcast and Conference Call

    The Company will hold the first quarter 2024 earnings conference call and webcast on April 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”.

    In May 2023, SB Financial was valued #163 on the American Banker Magazine’s list of top 200 publicly traded Community Bank and Thrifts based on three-year average return on equity.

    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)
                   
     March December September June March
    ($ in thousands)2024 2023 2023 2023 2023
                   
    ASSETS              
    Cash and due from banks$26,602  $22,965  $19,049  $20,993  $21,625 
    Interest bearing time deposits2,417  1,535  1,180  1,180  1,380 
    Available-for-sale securities213,239  219,708  212,768  227,996  237,607 
    Loans held for sale4,730  2,525  3,206  5,684  5,592 
    Loans, net of unearned income991,552  1,000,212  989,021  984,824  976,312 
    Allowance for credit losses(15,643) (15,786) (15,790) (15,795) (15,442)
    Premises and equipment, net20,985  21,378  21,934  22,230  22,621 
    Federal Reserve and FHLB Stock, at cost6,512  7,279  6,261  7,634  6,054 
    Foreclosed assets and other assets510  511  629  625  650 
    Interest receivable4,584  4,657  4,457  4,079  3,926 
    Goodwill23,239  23,239  23,239  23,239  23,239 
    Cash value of life insurance30,103  29,121  29,291  29,183  29,024 
    Mortgage servicing rights14,191  13,906  13,893  13,723  13,548 
    Other assets12,991  11,999  17,336  15,840  15,157 
    Total assets$1,336,012  $1,343,249  $1,326,474  $1,341,435  $1,341,293 
                   
    LIABILITIES AND SHAREHOLDERS' EQUITY              
    Deposits              
    Non interest bearing demand$219,395  $228,713  $224,182  $218,411  $237,175 
    Interest bearing demand169,171  166,413  174,729  170,282  188,497 
    Savings244,157  216,965  226,077  225,065  227,974 
    Money market221,362  202,605  216,565  217,681  222,203 
    Time deposits258,257  255,509  243,766  239,717  234,295 
    Total deposits1,112,342  1,070,205  1,085,319  1,071,156  1,110,144 
                   
    Short-term borrowings12,916  13,387  16,519  21,118  15,998 
    Federal Home Loan Bank advances35,000  83,600  59,500  81,300  44,500 
    Trust preferred securities10,310  10,310  10,310  10,310  10,310 
    Subordinated debt net of issuance costs19,654  19,642  19,630  19,618  19,606 
    Interest payable2,772  2,443  2,216  1,866  1,441 
    Other liabilities19,295  19,320  20,632  18,401  19,535 
    Total liabilities1,212,289  1,218,907  1,214,126  1,223,769  1,221,534 
                   
    Shareholders' Equity              
    Common stock61,319  61,319  61,319  61,319  61,319 
    Additional paid-in capital14,978  15,124  15,037  15,154  14,953 
    Retained earnings109,938  108,486  105,521  103,725  101,548 
    Accumulated other comprehensive loss(31,547) (29,831) (39,517) (32,894) (29,671)
    Treasury stock(30,965) (30,756) (30,012) (29,638) (28,390)
    Total shareholders' equity123,723  124,342  112,348  117,666  119,759 
    Total liabilities and shareholders' equity$1,336,012  $1,343,249  $1,326,474  $1,341,435  $1,341,293 
                   

     

    SB FINANCIAL GROUP, INC.
    CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)
                    
    ($ in thousands, except per share & ratios)
    At and for the Three Months Ended
                    
      March
     December September June
     March
    Interest income2024
     2023 2023 2023
     2023
     Loans              
     Taxable$13,547  $13,438  $13,128  $12,715  $12,126 
     Tax exempt123  124  122  121  116 
     Securities              
     Taxable1,593  1,526  1,507  1,524  1,535 
     Tax exempt37  38  39  46  47 
     Total interest income15,300  15,126  14,796  14,406  13,824 
                    
    Interest expense              
     Deposits5,090  4,398  4,194  3,538  2,578 
     Repurchase agreements & other34  39  16  9  10 
     Federal Home Loan Bank advances613  720  666  664  553 
     Trust preferred securities188  191  189  172  164 
     Subordinated debt195  194  195  194  195 
     Total interest expense6,120  5,542  5,260  4,577  3,500 
                    
    Net interest income
    9,180  9,584  9,536  9,829  10,324 
     Provision for credit losses-  (74) (6) 145  250 
                    
    Net interest income after provision for loan losses9,180  9,658  9,542  9,684  10,074 
                    
    Noninterest income              
     Wealth management fees865  838  837  940  917 
     Customer service fees880  844  863  871  825 
     Gain on sale of mtg. loans & OMSR781  747  1,207  1,056  599 
     Mortgage loan servicing fees, net671  561  438  494  608 
     Gain on sale of non-mortgage loans10  177  10  218  24 
     Title insurance revenue266  378  429  455  373 
     Net gain on sales of securities-  1,453  -  -  - 
     Gain (loss) on sale of assets-  16  -  15  (11)
     Other478  517  379  312  331 
     Total noninterest income3,951  5,531  4,163  4,361  3,666 
                    
    Noninterest expense
                  
     Salaries and employee benefits5,352  5,652  5,491  5,721  5,913 
     Net occupancy expense769  746  764  802  784 
     Equipment expense1,077  1,027  1,068  1,002  981 
     Data processing fees769  680  648  685  646 
     Professional fees758  926  623  612  863 
     Marketing expense197  182  189  213  198 
     Telephone and communication expense105  132  124  124  121 
     Postage and delivery expense97  167  100  78  87 
     State, local and other taxes245  285  218  218  228 
     Employee expense178  146  141  156  188 
     Other expenses735  426  1,115  728  764 
     Total noninterest expense10,282  10,369  10,481  10,339  10,773 
                    
                    
    Income before income tax expense
    2,849  4,820  3,224  3,706  2,967 
     Income tax expense481  937  537  631  517 
                    
    Net income $2,368  $3,883  $2,687  $3,075  $2,450 
                    
    Common share data:
                  
     Basic earnings per common share$0.35  $0.58  $0.40  $0.45  $0.35 
     Diluted earnings per common share$0.35  $0.57  $0.39  $0.44  $0.35 
                    
    Average shares outstanding (in thousands):
                  
     Basic:6,715  6,748  6,791  6,847  6,933 
     Diluted:6,723  6,851  6,878  6,910  7,008 
                    


    SB FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)
                    
    ($ in thousands, except per share & ratios) At and for the Three Months Ended
                    
      March December September June March
    SUMMARY OF OPERATIONS 2024 2023 2023 2023 2023
                    
    Net interest income $        9,180  $        9,584  $        9,536  $        9,829  $     10,324 
    Tax-equivalent adjustment 43  43  43  44  43 
    Tax-equivalent net interest income 9,223  9,627  9,579  9,873  10,367 
    Provision for credit loss -  (74) (6) 145  250 
    Noninterest income 3,951  5,531  4,163  4,361  3,666 
    Total operating revenue 13,131  15,115  13,699  14,190  13,990 
    Noninterest expense 10,282  10,369  10,481  10,339  10,773 
    Pre-tax pre-provision income 2,849  4,746  3,218  3,851  3,217 
    Pretax income 2,849  4,820  3,224  3,706  2,967 
    Net income 2,368  3,883  2,687  3,075  2,450 
                    
    PER SHARE INFORMATION:               
    Basic earnings per share (EPS) 0.35  0.58  0.40  0.45  0.35 
    Diluted earnings per share 0.35  0.57  0.39  0.44  0.35 
    Common dividends 0.135  0.135  0.130  0.130  0.125 
    Book value per common share 18.46  18.50  16.59  17.30  17.37 
    Tangible book value per common share (TBV) 14.93  14.98  13.09  13.81  13.93 
    Market price per common share 13.78  15.35  13.50  12.62  14.13 
    Market price to TBV 92.3% 102.5% 103.1% 91.4% 101.4%
    Market price to trailing 12 month EPS 7.9  8.8  8.0  7.1  8.2 
                    
    PERFORMANCE RATIOS:               
    Return on average assets (ROAA) 0.71% 1.17% 0.80% 0.91% 0.73%
    Pre-tax pre-provision ROAA 0.85% 1.43% 0.96% 1.14% 0.96%
    Return on average equity 7.70% 13.23% 9.25% 10.32% 8.22%
    Return on average tangible equity 9.53% 16.57% 11.62% 12.89% 10.26%
    Efficiency ratio 78.17% 68.44% 76.34% 72.71% 76.85%
    Earning asset yield 4.97% 4.89% 4.78% 4.61% 4.49%
    Cost of interest bearing liabilities 2.55% 2.33% 2.18% 1.90% 1.46%
    Net interest margin 2.98% 3.10% 3.08% 3.15% 3.35%
    Tax equivalent effect 0.01% 0.01% 0.01% 0.01% 0.02%
    Net interest margin, tax equivalent 2.99% 3.11% 3.09% 3.16% 3.37%
    Non interest income/Average assets 1.19% 1.67% 1.24% 1.30% 1.10%
    Non interest expense/Average assets 3.08% 3.12% 3.13% 3.07% 3.23%
    Net noninterest expense/Average assets -1.90% -1.46% -1.89% -1.78% -2.13%
                    
    ASSET QUALITY RATIOS:               
    Gross charge-offs 66  5  12  32  69 
    Recoveries 9  1  7  10  8 
    Net charge-offs 57  4  5  22  61 
    Nonperforming loans/Total loans 0.25% 0.28% 0.34% 0.30% 0.35%
    Nonperforming assets/Loans & OREO 0.30% 0.33% 0.40% 0.36% 0.41%
    Nonperforming assets/Total assets 0.22% 0.25% 0.30% 0.26% 0.30%
    Allowance for credit loss/Nonperforming loans 642.69% 560.18% 474.32% 542.78% 454.71%
    Allowance for credit loss/Total loans 1.58% 1.58% 1.60% 1.60% 1.58%
    Net loan charge-offs/Average loans (ann.) 0.02% 0.00% 0.00% 0.01% 0.03%
                    
    CAPITAL & LIQUIDITY RATIOS:               
    Loans/ Deposits 89.14% 93.46% 91.13% 91.94% 87.94%
    Equity/ Assets 9.26% 9.26% 8.47% 8.77% 8.93%
    Tangible equity/Tangible assets 7.63% 7.63% 6.81% 7.13% 7.29%
    Common equity tier 1 ratio (Bank) 13.63% 13.42% 13.56% 13.18% 13.44%
                    
    END OF PERIOD BALANCES               
    Total assets 1,336,012  1,343,249  1,326,474  1,341,435  1,341,293 
    Total loans 991,552  1,000,212  989,021  984,824  976,312 
    Deposits 1,112,342  1,070,205  1,085,319  1,071,156  1,110,144 
    Shareholders equity 123,723  124,342  112,348  117,666  119,759 
    Goodwill and intangibles 23,646  23,662  23,687  23,710  23,732 
    Tangible equity 100,077  100,680  88,661  93,956  96,027 
    Mortgage servicing portfolio 1,371,713  1,366,667  1,367,209  1,353,904  1,344,158 
    Wealth/Brokerage assets under care 525,517  501,829  478,236  499,255  518,009 
    Total assets under care 3,233,242  3,211,745  3,171,919  3,194,594  3,203,460 
    Full-time equivalent employees 245  251  252  253  255 
    Period end common shares outstanding 6,702  6,720  6,773  6,803  6,894 
    Market capitalization (all) 92,359  103,147  91,437  85,857  97,419 
                    
    AVERAGE BALANCES               
    Total assets 1,333,236  1,327,415  1,339,870  1,346,010  1,335,056 
    Total earning assets 1,230,736  1,236,165  1,239,145  1,248,813  1,232,018 
    Total loans 993,310  992,337  989,089  988,348  970,813 
    Deposits 1,091,803  1,084,939  1,095,414  1,100,344  1,098,935 
    Shareholders equity 123,058  117,397  116,165  119,177  119,237 
    Goodwill and intangibles 23,654  23,675  23,698  23,721  23,743 
    Tangible equity 99,404  93,722  92,467  95,456  95,494 
    Average basic shares outstanding 6,715  6,748  6,791  6,847  6,933 
    Average diluted shares outstanding 6,723  6,851  6,878  6,910  7,008 
                    


    SB FINANCIAL GROUP, INC.
    Rate Volume Analysis - (Unaudited)
    For the Three Months Ended Mar. 31, 2024 and 2023
                
    ($ in thousands)Three Months Ended Mar. 31, 2024
     Three Months Ended Mar. 31, 2023
     Average Average Average Average
    AssetsBalanceInterestRate BalanceInterestRate
    Taxable securities/cash$230,981 $1,5932.76% $253,449 $1,5352.42%
    Nontaxable securities6,445 372.30% 7,756 472.42%
    Loans, net993,310 13,6705.50% 970,813 12,2425.04%
    Total earning assets1,230,736 15,3004.97% 1,232,018 13,8244.49%
    Cash and due from banks4,512     11,067    
    Allowance for loan losses(15,830)    (14,763)   
    Premises and equipment21,281     22,858    
    Other assets92,537     83,876    
    Total assets$1,333,236     $1,335,056    
                
    Liabilities           
    Savings, MMDA and interest bearing demand$605,243 $2,5251.67% $643,081 $1,2850.80%
    Time deposits258,592 2,5653.97% 214,978 1,2932.41%
    Repurchase agreements & other15,993 340.85% 18,618 100.21%
    Advances from Federal Home Loan Bank51,030 6134.81% 49,177 5534.50%
    Trust preferred securities10,310 1887.29% 10,310 1646.36%
    Subordinated debt19,646 1953.97% 19,598 1953.98%
    Total interest bearing liabilities960,814 6,1202.55% 955,762 3,5001.46%
    Non interest bearing demand227,968 -   240,876 -  
    Total funding1,188,782  2.06% 1,196,638  1.17%
    Other liabilities21,396     21,347    
    Total liabilities1,210,178     1,217,985    
    Equity123,058     117,071    
    Total liabilities and equity$1,333,236     $1,335,056    
                
    Net interest income  $9,180     $10,324  
                
    Net interest income as a percent of average interest-earning assets - GAAP measure   2.98%    3.35%
                
    Net interest income as a percent of average interest-earning assets - non GAAP   2.99%    3.37%
    - Computed on a fully tax equivalent (FTE) basis           


    Non-GAAP reconciliation Three Months Ended 
    ($ in thousands, except per share & ratios)Mar. 31, 2024 Mar. 31, 2023
    Total Operating Revenue$13,131  $13,990 
    Adjustment to (deduct)/add OMSR recapture/impairment *(181) (56)
    Adjusted Total Operating Revenue12,950  13,934 
          
    Income before Income Taxes2,849  2,967 
    Adjustment for OMSR *(181) (56)
    Adjusted Income before Income Taxes2,668  2,911 
          
    Provision for Income Taxes481  517 
    Adjustment for OMSR **(38) (12)
    Adjusted Provision for Income Taxes443  505 
          
    Net Income2,368  2,450 
    Adjustment for OMSR *(143) (44)
    Adjusted Net Income2,225  2,406 
          
    Diluted Earnings per Share0.35  0.35 
    Adjustment for OMSR *(0.02) (0.01)
    Adjusted Diluted Earnings per Share$0.33  $0.34 
          
    Return on Average Assets0.71% 0.73%
    Adjustment for OMSR *-0.04% -0.01%
    Adjusted Return on Average Assets0.67% 0.72%
          
    *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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