DEFIANCE, Ohio, April 23, 2026 (GLOBE NEWSWIRE) -- SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the quarter ended March 31, 2026.
First Quarter 2026 Highlights compared to the first quarter of the prior year include:
- GAAP net income and Diluted Earnings per Share (“DEPS”) were $4.3 million, or $0.69 per DEPS, an improvement from the $2.2 million, or $0.33 per DEPS in the prior-year quarter. Net Income, adjusted for Originated Mortgage Servicing Rights (“OMSR”) and merger costs, was $3.9 million, up 44.7% percent compared to $2.7 million for the prior-year period. Adjusted DEPS of $0.63 was also up 50.0 percent, from the adjusted prior year.
- Net interest income of $12.7 million increased by 12.7 percent from $11.3 million reported in the prior-year quarter.
- Loan growth of $92.9 million, or 8.5 percent from the prior-year quarter, with growth from the linked quarter of $544,000, or 0.05 percent. This marks the eighth consecutive quarter of sequential loan growth.
- Deposit growth of $100.6 million, or 7.9 percent from the prior-year quarter, with an increase from the linked quarter of $64.6 million, or 4.9 percent.
- Adjusted tangible book value (“ATBV”) per share excluding AOCI increased to $21.96 at quarter end. Tangible book value (“TBV”) per share ended the quarter at $18.45 up $2.66 per share or 16.8 percent from the prior-year quarter.
“Net income for the first quarter of 2026 was $4.3 million, a 99.1 percent increase from the prior-year quarter, with GAAP DEPS of $0.69, up 109.1 percent from the prior-year period,” said Mark A. Klein, Chairman, President, and Chief Executive Officer. “This marks our 61st consecutive quarter of profitability and reflects the continued benefits of not only the Marblehead acquisition, but the wider margins and robust balance sheet growth we experienced over the last four quarters.”
For the quarter, net interest income increased to $12.7 million, up 12.7 percent from the prior-year quarter, primarily driven by solid loan growth, higher loan yields, and stable funding costs. Total loans increased $92.9 million from the prior-year quarter and $544,000 from the linked quarter. Total deposits at quarter end increased $100.6 million, or 7.9% percent, to $1.37 billion, supported by stable core deposit relationships and continued customer deposit gathering activities across our markets. Overall results for the quarter reflected continued balance sheet discipline, stable credit performance, and the benefit of our diversified revenue business model.
RESULTS OF OPERATIONS
In the first quarter of 2026, total operating revenue increased to $17.4 million, up 13.2 percent from $15.4 million in the prior-year quarter and 6.1 percent from $16.4 million in the linked quarter. The year-over-year increase was driven by higher net interest income and improved noninterest income, partially offset by a modest increase in total interest expense. Net interest income for the quarter totaled $12.7 million, compared to $11.3 million in the prior-year period and consistent with $12.7 million in the linked quarter. The year-over-year improvement was driven by an increase in interest income on loans, which increased by 13 percent, rising from $15.4 million in the prior-year quarter to $17.3 million. Total interest expense increased modestly from the prior-year quarter, as slightly higher deposit costs were partially offset by lower costs across other funding sources. As a result, net interest margin increased approximately 8 basis points from 3.41 percent in the prior-year quarter to 3.49 percent.
Mortgage Loan Business
Net mortgage banking revenue for the quarter reached $1.8 million, an increase of $369,000 from the prior-year quarter. Loan servicing fees added $928,000 to revenue, reflecting an increase of $34,000 from the prior-year quarter. The OMSR net valuation adjustment for the first quarter of 2026 was a recapture of $452,000, compared to a recapture of $11,000 in the first quarter of 2025.
Mortgage Banking ($ in thousands)Mar. 2026 Dec. 2025 Sep. 2025 Jun. 2025 Mar. 2025 Prior YearGrowth Mortgage originations$65,768 $72,398 $67,609 $97,901 $39,775 $25,993 Mortgage sales 53,420 70,361 66,408 74,313 39,279 14,141 Mortgage servicing portfolio 1,482,052 1,479,982 1,470,360 1,456,374 1,432,184 49,868 Mortgage servicing rights 15,728 15,254 15,347 15,458 14,965 763 Revenue Loan servicing fees 928 928 914 904 894 34 OMSR amortization (529) (572) (455) (469) (294) (235) Net administrative fees 399 356 459 435 600 (201) OMSR valuation adjustment 452 (157) (301) 159 11 441 Net loan servicing fees 851 199 158 594 611 240 Gain on sale of mortgages 978 1,272 1,328 1,566 849 129 Mortgage banking revenue, net$ 1,829 $ 1,471 $ 1,486 $ 2,160 $ 1,460 $ 369
Noninterest Income and Noninterest Expense
“Noninterest income for the first quarter of 2026 totaled $4.7 million, an increase of $605,000, or 14.7 percent, from the prior-year quarter, primarily driven by higher mortgage loan servicing fees, increased gains on sale of mortgage loans, and stronger gain on sale of non-mortgage loans, partially offset by a $97,000 decrease in other noninterest income. The year-over-year improvement reflects the Company’s continued progress in strengthening the diversity of its noninterest revenue base,” Mr. Klein noted.
Noninterest Income/Noninterest Expense($ in thousands, except ratios) Mar. 2026Dec. 2025Sep. 2025Jun. 2025Mar. 2025 Prior Year
Growth Noninterest Income (NII) $4,712 $3,708 $4,244 $5,048 $4,107 $605 NII / Total Revenue 27.0% 22.6% 25.6% 29.4% 26.7% 0.3% NII / Average Assets 1.2% 1.0% 1.1% 1.4% 1.1% 0.1% Total Revenue Growth 13.3% 6.3% 15.9% 22.3% 17.2% -3.9% Noninterest Expense (NIE) $11,929 $11,239 $11,498 $11,852 $12,410 $(481) Efficiency Ratio 68.1% 68.1% 69.0% 68.9% 80.0% -11.9% NIE / Average Assets 3.1% 2.9% 3.0% 3.2% 3.4% -0.3% Net Noninterest Expense/Avg. Assets -1.9% -1.9% -1.9% -1.8% -2.3% 0.4% Total Expense Growth -3.9% 2.1% 4.5% 11.1% 20.7% -24.6%
Noninterest expense for the first quarter of 2026 totaled $11.9 million, a decrease of 3.9 percent from the prior-year quarter, driven primarily by lower data processing expense of $713,000 due to the 2025 merger expenses and a reduction in salaries and employee benefits of $141,000. These decreases were partially offset by higher marketing expense of $112,000 and a modest increase in state, local and other taxes of $64,000. “We remain focused on maintaining disciplined control over noninterest expense. Our efficiency ratio for the first quarter of 2026 was 68.12 percent, a strong improvement from the prior-year period and largely consistent with the linked quarter, reflecting continued discipline in expense management as we balanced targeted investments with revenue performance,” stated Mr. Klein.
Balance Sheet
As of March 31, 2026, SB Financial reported total assets of $1.60 billion, an increase of $59.2 million from December 31, 2025, and $103.6 million, or 6.9 percent, from March 31, 2025. The year-over-year increase reflects continued growth in the loan portfolio, as well as the ongoing benefit of the Marblehead acquisition, which has further expanded the Company’s market presence and funding base in Northern Ohio. Cash increased by $21.1 million from the prior-year period to $126.3 million, driven by deposit growth and investment portfolio runoff. Key metrics for the quarter included a loan-to-deposit ratio of 86.10 percent and a loan-to-asset ratio of 73.6 percent, both of which remained within the Company’s target range.
Total deposits at quarter end increased to $1.37 billion, up $100.6 million, or 7.9 percent, from the prior-year quarter, reflecting continued organic deposit growth and stable client relationships across the franchise. Shareholders’ equity totaled $143.7 million at quarter end, representing an increase of $12.1 million, or 9.2 percent, from the prior-year period, equivalent to an increase of $2.81 per share.
During the first quarter, SB Financial repurchased approximately 29,000 shares, a slight decrease from the prior quarter, reflecting management’s disciplined capital deployment and its assessment of market conditions and capital priorities during the period. The Company remains focused on a balanced approach to capital management, prioritizing shareholder returns through dividends and share repurchases while maintaining flexibility to support organic growth, strategic opportunities, and capital strength.
“As we enter the second quarter of 2026, we believe the Company is operating from a position of strength, supported by a solid balance sheet, healthy credit metrics, and a stable funding base,” said Mr. Klein. “Loan growth over the past year reflects steady client activity and disciplined execution across our markets, while reserve coverage and overall credit performance remained sound during the quarter. We continue to benefit from a diversified business model and a consistent approach to capital management, which we believe positions us well to support prudent growth and long-term shareholder value.”
Loan Balances ($ in thousands, except ratios)Mar. 2026Dec. 2025Sep. 2025Jun. 2025Mar. 2025AnnualGrowthCommercial$111,606 $113,878 $117,581 $118,984 $125,878 $(14,272)% of Total 9.4% 9.6% 10.6% 10.9% 11.6% -11.3%Commercial RE 601,678 596,983 535,307 525,671 509,518 92,160 % of Total 50.9% 50.6% 48.2% 48.0% 46.8% 18.1%Agriculture 78,297 76,514 65,150 60,924 61,443 16,854 % of Total 6.6% 6.5% 5.9% 5.6% 5.6% 27.4%Residential RE 300,491 304,741 309,140 310,126 319,307 (18,816)% of Total 25.4% 25.8% 27.8% 28.3% 29.3% -5.9%Consumer & Other 89,063 88,475 83,367 79,014 72,128 16,935 % of Total 7.5% 7.5% 7.5% 7.2% 6.6% 23.5%Total Loans$ 1,181,135 $ 1,180,591 $ 1,110,545 $ 1,094,719 $ 1,088,274 $ 92,861 Total Growth Percentage 8.5% Deposit Balances ($ in thousands, except ratios)Mar. 2026Dec. 2025Sep. 2025Jun. 2025Mar. 2025Annual
GrowthNon-Int DDA$248,239 $254,063 $246,725 $241,245 $240,446 $7,793 % of Total 18.1% 19.4% 19.5% 19.3% 18.9% 3.2%Interest DDA 215,594 202,501 194,420 205,581 208,583 7,011 % of Total 15.7% 15.5% 15.4% 16.4% 16.4% 3.4%Savings 333,662 296,484 290,111 282,311 285,902 47,760 % of Total 24.3% 22.7% 23.0% 22.6% 22.5% 16.7%Money Market 300,028 280,896 261,953 249,536 257,013 43,015 % of Total 21.9% 21.5% 20.7% 20.0% 20.2% 16.7%Time Deposits 274,300 273,300 269,313 271,149 279,276 (4,976)% of Total 20.0% 20.9% 21.3% 21.7% 22.0% -1.8%Total Deposits$ 1,371,823 $ 1,307,244 $ 1,262,522 $ 1,249,822 $ 1,271,220 $ 100,603 Total Growth Percentage 7.9%
Asset Quality
As of March 31, 2026, SB Financial continued to report strong asset quality metrics. Nonperforming assets totaled $4.8 million representing 0.30 percent of total assets, a decrease of $1.4 million from $6.1 million, or 0.41 percent of total assets in the prior-year quarter, and a modest increase from the linked quarter, which reported nonperforming assets of $4.7 million, or 0.30 percent of total assets. The allowance for credit losses remained strong at 1.39 percent of total loans, providing coverage of 432.2 percent of nonperforming loans. This level was broadly consistent with the linked quarter and represented an improvement from the prior-year period, reflecting the Company’s disciplined credit risk framework. Net loan charge-offs to average loans remained modest at 1 basis point, compared to 4 basis points in the linked quarter and 3 basis points in the prior-year quarter. Collectively, these metrics reflect SB Financial’s continued emphasis on disciplined underwriting and effective credit administration.
“Our credit results this quarter continued to reflect stability across the loan portfolio and disciplined management of problem assets,” said Mr. Klein. “While nonperforming assets increased modestly from the linked quarter, overall credit performance remained sound, and reserve coverage continued to reflect our conservative approach to risk management. We remain focused on disciplined underwriting and proactive credit administration as we support measured growth across our markets.”
Nonperforming Assets AnnualChange ($ in thousands, except ratios)Mar. 2026Dec. 2025Sep. 2025Jun. 2025Mar. 2025 Commercial & Agriculture$1,357 $2,256 $2,243 $3,306 $3,418 $(2,061) % of Total Com./Ag. loans 0.71% 1.18% 1.23% 1.84% 1.82% -60.3% Commercial RE 764 771 778 784 798 (34) % of Total CRE loans 0.13% 0.13% 0.15% 0.15% 0.16% -4.3% Residential RE 1,431 1,322 1,400 1,585 1,608 (177) % of Total Res. RE loans 0.48% 0.43% 0.45% 0.51% 0.50% -11.0% Consumer & Other 240 230 195 197 227 13 % of Total Con./Oth. loans 0.27% 0.26% 0.23% 0.25% 0.31% 5.7% Total Nonaccruing Loans 3,792 4,579 4,616 5,872 6,051 (2,259) % of Total loans 0.32% 0.39% 0.42% 0.54% 0.56% -37.3% Foreclosed Assets and Other Assets 974 104 237 284 73 901 Total Change (%) N/M Total Nonperforming Assets$4,766 $4,683 $4,853 $6,156 $6,124 $(1,358) % of Total assets 0.30% 0.30% 0.32% 0.41% 0.41% -22.18%
Webcast and Conference Call
The Company will hold the first quarter 2026 earnings conference call and webcast on April 24, 2026, at 11:00 a.m. EST. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.
About SB Financial Group
Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 27 offices: 25 in eleven Ohio counties and two in Northeast, Indiana, and 27 ATMs. State Bank has four Residential loan production offices located throughout Ohio and Indiana. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Investor Contact Information:
Mark A. Klein
Chairman, President and
Chief Executive Officer
[email protected]
Anthony V. Cosentino
Executive Vice President and
Chief Financial Officer
[email protected]
2026 2025 2025 2025 2025 Loans Taxable $ 17,246 $ 17,234 $ 16,449 $ 16,059 $ 15,244 Tax exempt 99 107 117 116 115 Securities Taxable 1,029 1,096 1,097 1,133 1,169 Tax exempt 36 36 35 35 38 Other interest income 897 799 1,111 1,124 806 Total interest income 19,307 19,272 18,809 18,467 17,372 Interest expense
Deposits 5,957 5,820 5,721 5,597 5,352 Repurchase agreements & other 14 22 28 21 24 Federal Home Loan Bank advances 285 370 369 366 362 Trust preferred securities 144 154 162 161 160 Subordinated debt 195 194 195 194 195 Total interest expense 6,595 6,560 6,475 6,339 6,093 Net interest income
12,712 12,712 12,334 12,128 11,279 Provision for credit losses 214 198 124 597 387 Net interest income after provision for credit losses
12,498 12,514 12,210 11,531 10,892 Noninterest income
Wealth management fees 941 900 912 859 864 Customer service fees 910 892 887 886 879 Gain on sale of mtg. loans & OMSR 978 1,272 1,328 1,566 849 Mortgage loan servicing fees, net 851 199 158 594 611 Gain on sale of non-mortgage loans 144 38 8 82 15 Title insurance revenue 485 525 544 582 397 Gain (loss) on sale of assets 8 - - - - Other 395 (118) 407 479 492 Total noninterest income 4,712 3,708 4,244 5,048 4,107 Noninterest expense
Salaries and employee benefits 6,096 6,047 6,198 6,595 6,237 Net occupancy expense 882 822 801 793 893 Equipment expense 1,244 1,154 1,188 1,121 1,072 Data processing fees 726 790 723 888 1,439 Professional fees 1,016 805 863 892 1,034 Marketing expense 277 122 174 190 165 Telephone and communication expense 118 124 123 125 139 Postage and delivery expense 187 140 157 107 137 State, local and other taxes 288 331 268 268 224 Employee expense 184 158 255 176 174 Other expenses 911 746 748 697 896 Total noninterest expense 11,929 11,239 11,498 11,852 12,410 Income before income tax expense 5,281 4,983 4,956 4,727 2,589 Income tax expense 985 1,065 910 875 431 Net income
$ 4,296 $ 3,918 $ 4,046 $ 3,852 $ 2,158 Common share data:
Basic earnings per common share $ 0.69 $ 0.63 $ 0.64 $ 0.60 $ 0.33 Diluted earnings per common share $ 0.69 $ 0.63 $ 0.64 $ 0.60 $ 0.33 Average shares outstanding (in thousands): Basic: 6,230 6,252 6,297 6,448 6,481 Diluted: 6,243 6,266 6,311 6,459 6,502
2025
2025
2025
2025
Net interest income $12,712 $12,712 $12,334 $12,128 $11,279 Tax-equivalent adjustment 36 38 40 40 41 Tax-equivalent net interest income 12,748 12,750 12,374 12,168 11,320 Provision for credit loss 214 198 124 597 387 Noninterest income 4,712 3,708 4,244 5,048 4,107 Total operating revenue 17,424 16,420 16,578 17,176 15,386 Noninterest expense 11,929 11,239 11,498 11,852 12,410 Pre-tax pre-provision income 5,495 5,181 5,080 5,324 2,976 Net income 4,296 3,918 4,046 3,852 2,158 PER SHARE INFORMATION: Basic earnings per share (EPS) 0.69 0.63 0.64 0.60 0.33 Diluted earnings per share 0.69 0.63 0.64 0.60 0.33 Common dividends 0.155 0.155 0.150 0.150 0.145 Book value per common share 23.10 22.65 21.85 21.02 20.29 Tangible book value per common share (TBV) 18.45 18.00 17.21 16.44 15.79 Market price per common share 21.00 22.27 19.29 19.10 20.82 Market price to TBV 113.8% 123.7% 112.1% 116.2% 131.8% Market price to trailing 12 month EPS 8.2 10.1 9.1 10.4 12.2 PERFORMANCE RATIOS: Return on average assets (ROAA) 1.10% 1.01% 1.07% 1.03% 0.60% Pre-tax pre-provision ROAA 1.41% 1.34% 1.34% 1.42% 0.83% Return on average equity (ROE) 12.04% 11.08% 12.08% 11.67% 6.63% Return on average tangible equity 15.06% 13.97% 15.47% 14.97% 8.32% Efficiency ratio 68.12% 68.09% 69.00% 68.90% 80.00% Earning asset yield 5.29% 5.32% 5.31% 5.29% 5.23% Cost of interest bearing liabilities 2.31% 2.34% 2.33% 2.33% 2.32% Net interest margin 3.48% 3.51% 3.48% 3.48% 3.40% Tax equivalent effect 0.01% 0.01% 0.02% 0.01% 0.01% Net interest margin, tax equivalent 3.49% 3.52% 3.50% 3.49% 3.41% Non interest income/Average assets 1.21% 0.96% 1.12% 1.35% 1.14% Non interest expense/Average assets 3.06% 2.90% 3.04% 3.17% 3.45% Net noninterest expense/Average assets -1.85% -1.94% -1.92% -1.82% -2.31% ASSET QUALITY RATIOS: Gross charge-offs 33 133 11 49 86 Recoveries 7 3 9 3 2 Net charge-offs 26 130 2 46 84 Nonperforming loans/Total loans 0.32% 0.39% 0.42% 0.54% 0.56% Nonperforming assets/Loans & OREO 0.40% 0.40% 0.44% 0.56% 0.56% Nonperforming assets/Total assets 0.30% 0.30% 0.32% 0.41% 0.41% Allowance for credit loss/Nonperforming loans 432.17% 351.91% 345.39% 266.43% 254.35% Allowance for credit loss/Total loans 1.39% 1.36% 1.44% 1.43% 1.41% Net loan charge-offs/Average loans (ann.) 0.01% 0.04% 0.00% 0.02% 0.03% CAPITAL & LIQUIDITY RATIOS: Loans/ Deposits 86.10% 90.31% 87.96% 87.59% 85.61% Equity/ Assets 8.95% 9.14% 9.15% 8.99% 8.76% Tangible equity/Tangible assets 7.28% 7.40% 7.35% 7.17% 6.96% Common equity tier 1 ratio (Bank) 12.06% 11.78% 12.48% 12.53% 12.35% END OF PERIOD BALANCES Total assets 1,604,598 1,545,367 1,496,263 1,486,301 1,501,002 Total loans 1,181,135 1,180,591 1,110,545 1,094,719 1,088,274 Deposits 1,371,823 1,307,244 1,262,522 1,249,822 1,271,220 Shareholders equity 143,655 141,236 136,939 133,648 131,526 Goodwill and intangibles 28,929 28,989 29,048 29,107 29,125 Tangible equity 114,726 112,247 107,891 104,541 102,401 Mortgage servicing portfolio 1,482,052 1,479,982 1,470,360 1,456,374 1,432,184 Wealth/Brokerage assets under care 556,930 566,004 563,036 536,836 519,158 Total assets under care 3,643,580 3,591,353 3,529,659 3,479,511 3,452,344 Full-time equivalent employees 258 252 253 256 262 Period end common shares outstanding 6,219 6,236 6,268 6,359 6,483 Market capitalization (all) 130,597 138,883 120,907 121,453 134,982 AVERAGE BALANCES Total assets 1,579,781 1,536,215 1,502,389 1,498,756 1,459,896 Total earning assets 1,479,667 1,436,207 1,404,330 1,399,485 1,346,354 Total loans 1,186,225 1,158,567 1,104,175 1,094,199 1,076,328 Deposits 1,347,351 1,299,512 1,270,783 1,270,798 1,227,449 Shareholders equity 144,659 140,315 132,866 132,353 131,944 Goodwill and intangibles 28,959 29,027 29,077 29,116 26,714 Tangible equity 115,700 111,288 103,789 103,237 105,230 Average basic shares outstanding 6,230 6,252 6,297 6,448 6,481 Average diluted shares outstanding 6,243 6,266 6,311 6,459 6,502