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, a 109.1% increase from the prior-year quarter, marking 61 consecutive profitable quarters.

• Adjusted net income (excluding OMSR and merger costs) was $3.9 million, up 44.7% year-over-year; adjusted diluted EPS was $0.63, up 50%.

• Balance sheet growth supported by $92 million increase in loan balances and $100 million increase in deposits year-over-year.

• Marblehead acquisition contributed to funding stability and expanded presence in Northern Ohio.

• Maintained strong asset quality and disciplined expense management.

Financial highlights

• Net interest income rose to $12.7 million from $11.3 million year-over-year, a 12.7% increase; 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.

• Noninterest expense decreased 3.9% to $11.9 million, reflecting lower data processing and salary costs.

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

• Return on average assets was 1.10%, and return on average equity was 12.04%, both significantly higher year-over-year.

Outlook and guidance

• Expecting 25% sequential increase in mortgage origination volume for Q2.

• Pipeline for loan growth remains strong, with high single-digit growth targeted and optimism for continued 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.

• Full-year mortgage production expected in the $310–$350 million range, depending on market rates.

• Management expects continued strength in balance sheet, credit metrics, and funding base into Q2 2026.