SB Financial Group (SBFG) investor relations material

Executive summary

• Net income for Q1 2026 was $4.3 million, up 99.1% year-over-year, with diluted EPS of $0.69, marking the 61st consecutive profitable quarter and driven by higher loan interest income and increased mortgage activity.

• Operating revenue rose 13.2% to $17.4 million, with net interest income at $12.7 million and noninterest income at $4.7 million, both up year-over-year.

• Balance sheet growth was supported by an increase in loan balances to $1.18 billion and deposits to $1.37 billion, aided by the Marblehead acquisition.

• Maintained strong asset quality and disciplined expense management, with noninterest expense down to $11.9 million.

• Tangible book value per share ended at $18.45, up from $15.79 year-over-year.

Financial highlights

• Net interest income rose to $12.7 million, up 12.7% year-over-year; noninterest income increased to $4.7 million, up 14.7%.

• Total operating revenue reached $17.4 million, up 13.2% year-over-year and 6.1% sequentially.

• Efficiency ratio improved to 68.1%, with adjusted efficiency ratio down over 500 basis points year-over-year.

• Noninterest expense decreased to $11.9 million, reflecting lower merger and data processing costs.

• Return on average assets was 1.10%, and return on average equity was 12.04%.

Outlook and guidance

• Management expects continued asset and loan growth, stable asset quality, and sufficient liquidity, with a focus on disciplined growth and prudent risk management.

• Expecting 25% sequential increase in mortgage origination volume for Q2 and full-year mortgage production in the $310–$350 million range.

• Pipeline for loan growth remains strong, targeting high single-digit growth and expansion in new and existing markets.

• Anticipate deposit growth to moderate, with loan-to-deposit ratio moving toward 90% for the remainder of the year.

• State Bank remains classified as “well capitalized” under regulatory standards.