SB Financial (SBFG) 8-K SB Financial Group, Inc. Announces First-Quarter 2015 Results

Exhibit 99.1

Investor Contact Information:

Anthony V. Cosentino

Executive Vice President and

Chief Financial Officer

Tony.Cosentino@YourStateBank.com

SB Financial Group, Inc. Announces First-Quarter 2015 Results

6.2% year-over-year loan growth and 53% year-over-year earnings growth

DEFIANCE, Ohio, April 27, 2015 -- 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 and item processing services, today reported earnings for the first quarter ended March 31, 2015.

First-quarter highlights include:

● Net income of $1.5 million for the first quarter represented a 52.7 percent increase over the prior year first quarter

● Loan growth up $29.9 million, or 6.2 percent, from the prior year

● Fully tax equivalent (FTE) revenue up 23.2 percent from the prior year

● Net interest margin (FTE) of 3.71 percent for the quarter was up 25 basis points from the prior year

● Asset quality remained strong for the quarter, with the nonperforming asset ratio at 0.86 percent at March 31, 2015

● Positive operating leverage for the Company, as expenses were up 9.3 percent from the prior year

Highlights*	Three Months Ended
(in $000’s except ratios and per share data)	Mar. 2015			Mar. 2014			% Change
Operating revenue (FTE)	$	9,221		$	7,482			23.2	%
Interest income (FTE)		6,268			5,839			7.4
Interest expense		643			916			(29.8	)
Net interest income (FTE)		5,625			4,923			14.3
Noninterest income		3,596			2,559			40.5
Noninterest expense		6,644			6,079			9.3
Net income		1,496			980			52.7
Earnings per diluted share		0.23			0.20			15.0
Net interest margin (FTE)		3.71	%		3.46	%		7.2
Return on assets		0.84	%		0.61	%		37.7
Return on equity		7.82	%		6.88	%		13.7

*Consolidated earnings for SB Financial include the results of the Company’s Banking Group, consisting primarily of The State Bank and Trust Company (“State Bank” or the “Bank”), and the Company’s data services subsidiary, Rurbanc Data Services, Inc. (dba RDSI Banking Systems) (“RDSI”).

“We are pleased with our solid first-quarter results,” said Mark Klein, President and Chief Executive Officer of SB Financial. “We are especially pleased with our revenue growth for the quarter, which outpaced expense growth by 2.5 times.”

Klein continued, “Our mortgage volume of $75 million for the quarter exceeded our expectations, and our secondary market sales for the quarter were the highest since the second quarter of 2013. Our gains in Small Business Administration (SBA) loan sales this quarter resulted from our concentrated calling efforts over the past year. In addition to our robust financial results, we opened our 17^thbanking center on March 23, 2015, in Findlay, Ohio.”

RESULTS OF OPERATIONS

Consolidated Revenue

Total revenue, consisting of net interest income on a fully tax equivalent (FTE) basis and noninterest income, was up 23.2 percent from the first quarter of 2014, and up 5.2 percent from the linked quarter.

● Net interest income (FTE) was up 14.3 percent for the first quarter, and up 0.5 percent compared to the linked quarter.

● Net interest margin (FTE) was up 25 basis points for the first quarter, but down 2 basis points from the linked quarter.

● Net interest margin was impacted by the payoff of our fixed rate trust preferred securities late in the third quarter of 2014. For the first quarter, this early payoff increased margin by 18 basis points.

● Noninterest income was up 40.5 percent for thefirstquarter, and up 13.7 percent from the linked quarter.

Mortgage Loan Business

Mortgage loan originations for thefirst quarter of 2015 were $75.0 million, up $41.4 million, or 123.1 percent, from the year-agofirst quarter.

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.46 million for the first quarter of 2015, compared to $0.82 million for the year-ago quarter. The mortgage servicing valuation adjustment for the first-quarter 2015 was a negative $0.08 million. Our servicing valuation impairment ended the quarter at $0.49 million.The mortgage servicing portfolio at March 31, 2015, was $687.4 million, up $77.9 million, or 12.8 percent, from $609.4 million at March 31, 2014.

Mr. Klein noted, “Our mortgage origination and sales volumes for the quarter increased substantially from the prior year. We experienced a higher level of refinance volume this quarter, 25 percent of total volume, as the sustained low rates impacted customer behavior. Further, we are pleased by the immediate impact that our new Findlay team had in our success this quarter. The mortgage pipeline in all of our markets remains quite strong.”

Mortgage Banking ($000’s)
	Mar. 2015			Dec. 2014			Sep. 2014			Jun. 2014			Mar. 2014
Mortgage originations	$	74,955		$	52,058		$	67,502		$	66,563		$	33,602
Mortgage sales		64,360			43,542			60,982			49,091			27,961
Mortgage servicing portfolio		687,361			665,710			649,669			627,215			609,419
Mortgage servicing rights		5,860			5,704			5,720			5,375			5,228
Mortgage servicing revenue:
Loan servicing fees		420			410			400			387			380
OMSR amortization		(282	)		(174	)		(175	)		(147	)		(117	)
Net administrative fees		138			236			225			240			263
OMSR valuation adjustment		(80	)		(193	)		62			(83	)		(18	)
Net loan servicing fees		58			43			287			156			245
Gain on sale of mortgages		1,400			1,003			1,442			1,211			572
Mortgage banking revenue, net		1,458			1,046		$	1,729		$	1,368		$	817

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Fee Income and Noninterest Expense

SB Financial’s fee income includes revenue from a diverse group of services, such as wealth management, deposit fees and income from bank-owned life insurance. Wealth management assets under management stood at $332.0 million as of March 31, 2015. For the first quarter of 2015, fee income as a percentage of total revenue was 39.4 percent, up from the prior year level of 34.7 percent.

For thefirstquarter of 2015, noninterest expense (NIE) was up $0.6 million, or 9.3 percent, compared to the first quarter of 2014. Compared to the linked quarter, NIE was up $0.3 million or 4.4 percent. The growth in expenses resulted from increased mortgage and SBA commissions and higher marketing costs related to customer and account acquisitions.

“Our fee income continues to be a competitive strength,” Mr. Klein stated. “Mortgage volume this quarter was enhanced by a number of SBA and Farm Service Agency (FSA) loan sale gains. We feel very confident about our SBA pipeline, as our lenders have been striving to find and deliver SBA qualified prospects. Wealth management put a number of structural changes in place over the past several months, and this line of business will be a key factor in our 2015 results.”

Fee Income / Noninterest Expense (000’s)
	Mar. 2015			Dec. 2014			Sep. 2014			Jun. 2014			Mar. 2014
Fee Income	$	3,596		$	3,164		$	3,809		$	3,295		$	2,559
Fee Income / Total Revenue		39.4	%		36.5	%		41.6	%		38.6	%		34.7	%
Fee Income / Average Assets		2.0	%		1.8	%		2.3	%		2.0	%		1.6	%
Noninterest Expense	$	6,644		$	6,364		$	6,888		$	6,627		$	6,079
Efficiency Ratio		72.2	%		72.8	%		74.6	%		76.0	%		80.6	%
NIE / Average Assets		3.7	%		3.7	%		4.1	%		4.0	%		3.8	%

Balance Sheet

Total assets as of March 31, 2015, were $717.6 million, up 11.0 percent from a year ago. Total equity as of March 31, 2015, was $77.1 million, up 34.2 percent from a year ago. Equity balances included the net impact of our capital raise completed in the fourth quarter of 2014, which added $14.0 million to total equity through the public offering of depository shares, each representing a 1/100^thinterest in our 6.50 percent Noncumulative Convertible Preferred Shares, Series A.

Total loans held for investment were $511.8 million at March 31, 2015, up $29.9 million, or 6.2 percent, from March 31, 2014. Residential real estate loans accounted for the majority of growth, up $16.8 million, or 17.2 percent. Commercial real estate and agricultural loans rose $5.1 million, or 2.4 percent, and $5.2 million, or 13.4 percent, respectively.

The investment portfolio, including Federal Reserve Bank and Federal Home Loan Bank stock, of $97.8 million represented 13.6 percent of assets at March 31, 2015, and was up slightly from a year ago. Deposit balances of $578.3 million at March 31, 2015, increased by $27.4 million, or 5.0 percent since December 31, 2014. Growth from December 31, 2014, included $10.9 million in checking and $16.5 million in savings and time deposit balances.

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Mr. Klein said, “We continued to see solid growth of loans and deposits in our markets with the improving economy. While we had some anticipated loan payoffs this quarter that held balances flat to the linked quarter, our pipeline is improving and we expect to show positive growth in the near term. Nonperforming assets were down from the prior year by 9.0 percent, and our 86 basis point level of nonperforming assets is certainly in the top quartile.”

Loan Portfolio ($000’s)	Mar. 2015			Dec. 2014			Sep. 2014			Jun. 2014			Mar. 2014			Variance YOY
Commercial	$	85,022		$	88,329		$	90,407		$	92,424		$	85,701		$	(679	)
% of Total		16.6	%		17.1	%		17.9	%		18.3	%		17.8	%		(0.8	%)
Commercial RE		217,610			217,030			212,964			215,824			212,502			5,108
% of Total		42.5	%		42.0	%		42.1	%		42.6	%		44.1	%		2.4	%
Agriculture		44,266			46,217			44,162			43,475			39,028			5,238
% of Total		8.7	%		9.0	%		8.7	%		8.6	%		8.1	%		13.4	%
Residential RE		114,702			113,214			107,712			105,054			97,857			16,845
% of Total		22.4	%		21.9	%		21.3	%		20.8	%		20.3	%		17.2	%
Consumer & Other		50,184			51,546			50,679			49,350			46,836			3,348
% of Total		9.8	%		10.0	%		10.0	%		9.7	%		9.7	%		7.2	%
Total Loans	$	511,784		$	516,336		$	505,924		$	506,127		$	481,924		$	29,860
Total Growth Percentage																	6.2	%

Deposit Bal. ($000’s)	Mar. 2015			Dec. 2014			Sep. 2014			Jun. 2014			Mar. 2014			Variance YOY
Non-Int DDA	$	96,638		$	97,853		$	90,261		$	87,706		$	84,265		$	12,373
% of Total		16.7	%		17.8	%		16.9	%		16.7	%		15.8	%		14.7	%
Interest DDA		133,145			121,043			119,805			116,765			126,520			6,625
% of Total		23.0	%		22.0	%		22.4	%		22.3	%		23.8	%		5.2	%
Savings		75,445			64,107			61,770			63,199			64,306			11,139
% of Total		13.1	%		11.6	%		11.5	%		12.1	%		12.1	%		17.3	%
Money Market		106,325			104,602			96,506			80,288			85,731			20,594
% of Total		18.4	%		19.0	%		18.0	%		15.3	%		16.1	%		24.0	%
Certificates		166,730			163,301			166,919			176,109			171,897			(5,167	)
% of Total		28.8	%		29.6	%		31.2	%		33.6	%		32.2	%		(3.0	%)
Total Deposits	$	578,283		$	550,906		$	535,261		$	524,067		$	532,719		$	45,564
Total Growth Percentage																	8.6	%

4

Asset Quality

SB Financial continues to maintain top-quartile asset quality, reporting nonperforming assets of $6.2 million as of March 31, 2015, down $0.6 million, or 9.3 percent, from the year-ago quarter. Already trending better than our peers’ key metrics, our 0.86 percent of nonperforming assets to total assets remains in the top quartile of our peer group. Our coverage of problem loans by the loan loss allowance was 114.3 percent at March 31, 2015, up from the 108.5 percent at March 31, 2014.

Summary of Nonperforming Assets ($000’s)
Nonperforming Loan Category	Mar. 2015			Dec. 2014			Sep. 2014			Jun. 2014			Mar. 2014
Commercial	$	1,413		$	1,566		$	1,397		$	1,485		$	1,818
% of Total Commercial loans		1.66	%		1.77	%		1.55	%		1.61	%		2.12	%
Commercial RE		1,932			2,092			616			699			753
% of Total CRE loans		0.89	%		0.96	%		0.29	%		0.32	%		0.35	%
Residential RE		967			992			1,015			1,534			1,555
% of Total Res. RE loans		0.84	%		0.88	%		0.94	%		1.46	%		1.59	%
Consumer & Other		138			138			174			288			280
% of Total Cons. & Other loans		0.27	%		0.27	%		0.34	%		0.58	%		0.60	%
Total Nonaccruing Loans		4,450			4,787			3,202			4,006			4,406
% of Total Loans		0.87	%		0.93	%		0.63	%		0.79	%		0.91	%
Accruing Restructured Loans		1,524			1,206			1,620			1,665			1,793
Total Nonaccruing & Restructured Loans	$	5,974		$	5,993		$	4,822		$	5,671		$	6,199
% of Total Loans		1.17	%		1.16	%		0.95	%		1.12	%		1.29	%
OREO & Repossessed Vehicles		207			285			540			516			615
Total Nonperforming Assets	$	6,181		$	6,278		$	5,362		$	6,187		$	6,814
% of Total Assets		0.86	%		0.92	%		0.81	%		0.93	%		1.05	%

Capitalization

Improving capital ratios remains an important focus of management. The tangible equity ratio improved by 20 basis points over the past year and stood at 6.6 percent as of March 31, 2015. All bank and holding company regulatory ratios remain in excess of "well-capitalized" levels. At March 31, 2015, SB Financial’s Total Risk-Based Capital was estimated to be $75.3 million, with a ratio level of 14.0 percent.

Webcast and Conference Call

The Company will hold a related conference call and webcast on April 28, 2015, at 3:00 p.m. EST. Interested parties may access the conference call by dialing1-888-338-9469. The webcast can be accessed athttp://www.yoursbfinancial.com/investorrelations.html. An audio replay of the call will be available on the SB Financial website.

About SB Financial Group

Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company with two wholly-owned operating subsidiaries: State Bank and RDSI. State Bank provides a full range of financial services for consumers and small businesses, including wealth management, mortgage banking and commercial and agricultural lending, operating through 16 banking centers in eight northwestern Ohio counties and one center in Fort Wayne, Indiana, as well as two loan production offices located in Columbus, Ohio, and one in Angola, Indiana. RDSI provides item processing services to community banks located primarily in the Midwest. SB Financial’s common stock is listed on the NASDAQ Capital Market under the symbol “SBFG”.  SB Financial’s depository shares, each representing a 1/100^th interest in our preferred shares, Series A are listed on the NASDAQ Capital Market under the symbol “SBFGP”.  

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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

In addition to results presented in accordance with GAAP, this release contains certain non-GAAP financial measures. Management believes that providing certain non-GAAP financial measures provides investors with information useful in understanding the Company’s financial performance, its performance trends and financial position. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results.

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SB FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS - (Unaudited)

	March			December			September			June			March
($ in Thousands)	2015			2014			2014			2014			2014
ASSETS
Cash and due from banks	$	49,765		$	28,197		$	21,870		$	13,778		$	14,860
Securities available for sale, at fair value		94,056			85,240			81,148			85,586			93,305
Other securities - FRB and FHLB Stock		3,748			3,748			3,748			3,748			3,748
Total investment securities		97,804			88,988			84,896			89,334			97,053
Loans held for sale		8,667			5,168			6,736			8,290			7,165
Loans, net of unearned income		511,784			516,336			505,924			506,127			481,924
Allowance for loan losses		(6,830	)		(6,771	)		(6,713	)		(6,568	)		(6,726	)
Net loans		504,954			509,565			499,211			499,559			475,198
Premises and equipment, net		15,407			13,604			13,256			13,281			13,414
Cash surrender value of life insurance		13,219			13,148			13,074			13,059			12,982
Goodwill		16,353			16,353			16,353			16,353			16,353
Core deposits and other intangibles		229			283			338			393			524
Foreclosed assets held for sale, net		207			285			540			516			615
Mortgage servicing rights		5,860			5,704			5,720			5,375			5,228
Accrued interest receivable		1,554			1,346			1,853			1,456			1,423
Other assets		3,536			1,587			709			1,106			1,487
Total assets	$	717,555		$	684,228		$	664,556		$	662,500		$	646,302
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand	$	96,638		$	97,853		$	90,261		$	87,706		$	84,265
Interest bearing demand		133,145			121,043			119,805			116,765			126,520
Savings		75,445			64,107			61,770			63,199			64,306
Money market		106,325			104,602			96,506			80,288			85,731
Time deposits		166,730			163,301			166,919			176,109			171,897
Total deposits		578,283			550,906			535,261			524,067			532,719
Notes payable		-			-			7,000			-			-
Advances from Federal Home Loan Bank		30,000			30,000			30,000			37,000			14,000
Repurchase agreements		14,648			12,740			17,902			17,246			16,905
Trust preferred securities		10,310			10,310			10,310			20,620			20,620
Accrued interest payable		334			264			355			655			425
Other liabilities		6,880			4,325			3,462			3,902			4,198
Total liabilities		640,455			608,545			604,290			603,490			588,867
Equity
Preferred stock		13,983			13,983			-			-			-
Common stock		12,569			12,569			12,569			12,569			12,569
Additional paid-in capital		15,413			15,461			15,418			15,403			15,391
Retained earnings		35,429			34,379			33,075			31,757			30,708
Accumulated other comprehensive income		1,264			918			831			908			407
Treasury stock		(1,558	)		(1,627	)		(1,627	)		(1,627	)		(1,640	)
Total equity		77,100			75,683			60,266			59,010			57,435
Total liabilities and equity	$	717,555		$	684,228		$	664,556		$	662,500		$	646,302

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SB FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME - (Unaudited)

($ in thousands, except share data)	Three Months Ended
	March			December			September			June			March
	2015			2014			2014			2014			2014
Interest income
Loans
Taxable	$	5,619		$	5,707		$	5,855		$	5,654		$	5,241
Nontaxable		6			6			9			13			16
Securities
Taxable		372			300			279			310			309
Nontaxable		177			177			178			179			175
Total interest income		6,174			6,190			6,321			6,156			5,741
Interest expense
Deposits		495			483			500			503			498
Repurchase Agreements & Other		5			53			23			4			11
Federal Home Loan Bank advances		92			95			94			71			74
Trust preferred securities		51			54			354			330			333
Total interest expense		643			685			971			908			916
Net interest income		5,531			5,505			5,350			5,248			4,825
Provision for loan losses		350			150			150			150			-
Net interest income after provision for loan losses		5,181			5,355			5,200			5,098			4,825
Noninterest income
Wealth Management Fees		659			679			670			649			632
Customer service fees		632			686			730			665			610
Gain on sale of mtg. loans & OMSR's		1,400			1,003			1,442			1,211			572
Mortgage loan servicing fees, net		58			43			287			156			245
Gain on sale of non-mortgage loans		254			143			71			84			23
Data service fees		317			324			337			322			306
Net gain on sales of securities		-			104			-			56			-
Gain/(loss) on sale/disposal of assets		(19	)		(15	)		(15	)		(15	)		(34	)
Other income		295			197			287			167			205
Total non-interest income		3,596			3,164			3,809			3,295			2,559
Noninterest expense
Salaries and employee benefits		3,477			3,179			3,435			3,451			3,120
Net occupancy expense		503			521			508			485			573
Equipment expense		565			625			616			645			639
Data processing fees		263			230			238			249			211
Professional fees		440			465			435			465			338
Marketing expense		149			166			105			170			123
Telephone and communication		90			91			94			107			112
Postage and delivery expense		234			197			195			187			204
State, local and other taxes		129			94			89			95			92
Employee expense		153			111			122			140			115
Intangible amortization expense		54			55			55			131			131
OREO Impairment		-			-			-			-			-
Other expenses		587			630			996			502			421
Total non-interest expense		6,644			6,364			6,888			6,627			6,079
Income before income tax expense		2,133			2,155			2,121			1,767			1,306
Income tax expense		637			631			607			521			326
Net income	$	1,496		$	1,524		$	1,513		$	1,246		$	980
Preferred Stock Dividends		225			-			-			-			-
Net income available to common		1,271			1,524			1,513			1,246			980
Common share data:
Basic earnings per common share	$	0.26		$	0.31		$	0.31		$	0.26		$	0.20
Diluted earnings per common share	$	0.23		$	0.30		$	0.31		$	0.25		$	0.20
Average shares outstanding ($ in thousands):
Basic:		4,879			4,875			4,875			4,874			4,871
Diluted:		6,379			5,044			4,900			4,893			4,894

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SB FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

($ in thousands, except per share data)	At and for the Three Months Ended
	March			December				September			June			March
SUMMARY OF OPERATIONS	2015			2014				2014			2014			2014
Net interest income	$	5,531			5,505				5,350			5,248			4,825
Tax-equivalent adjustment	$	94			94				96			99			98
Tax-equivalent net interest income	$	5,625			5,599				5,446			5,347			4,923
Provision for loan loss	$	350			150				150			150			-
Noninterest income	$	3,596			3,164				3,809			3,295			2,559
Total revenue, tax-equivalent	$	9,221			8,763				9,255			8,642			7,482
Noninterest expense	$	6,644			6,364				6,888			6,627			6,079
Pre provision pretax income	$	2,483			2,305				2,271			1,917			1,306
Pretax income	$	2,133			2,155				2,121			1,767			1,306
Net income	$	1,496			1,524				1,513			1,246			980
Income available to common shareholders	$	1,271			1,524				1,513			1,246			980
PER SHARE INFORMATION:
Basic earnings per share	$	0.26			0.31				0.31			0.26			0.20
Diluted earnings per share	$	0.23			0.30				0.31			0.25			0.20
Common dividends	$	0.045			0.045				0.040			0.040			0.035
Book value per common share	$	12.18			11.96				12.36			12.10			11.78
Tangible book value per common share	$	9.53			9.24				8.94			8.67			8.32
Market price per common share	$	10.55			9.40				9.05			8.37			8.35
PERFORMANCE RATIOS:
Return on average assets		0.84	%		0.89	%			0.90	%		0.76	%		0.61	%
Return on average common equity		7.82	%		9.40	%			10.14	%		8.55	%		6.88	%
Return on avg. tangible common equity		13.03	%		13.03	%			14.09	%		12.01	%		9.89	%
Efficiency ratio		72.20	%		72.78	%			74.60	%		76.03	%		80.55	%
Earning asset yield		4.14	%		4.18	%			4.29	%		4.16	%		4.10	%
Cost of interest bearing liabilities		0.49	%		0.53	%			0.76	%		0.72	%		0.74	%
Net interest margin		3.64	%		3.66	%			3.58	%		3.53	%		3.39	%
Tax equivalent effect		0.07	%		0.07	%			0.06	%		0.07	%		0.07	%
Net interest margin - fully tax equivalent basis		3.71	%		3.73	%			3.64	%		3.60	%		3.46	%
ASSET QUALITY RATIOS:
Gross charge-offs	$	303			101				94			330			323
Recoveries	$	11			9				90			21			85
Net charge-offs	$	292			92				4			309			238
Nonaccruing loans/ Total loans		0.87	%		0.93	%			0.63	%		0.79	%		0.91	%
Nonperforming loans/ Total loans		1.17	%		1.16	%			0.95	%		1.12	%		1.29	%
Nonperforming assets/ Loans & OREO		1.21	%		1.22	%			1.06	%		1.22	%		1.41	%
Nonperforming assets/ Total assets		0.86	%		0.92	%			0.81	%		0.93	%		1.05	%
Allowance for loan loss/ Nonperforming loans		114.33	%		112.98	%			139.22	%		115.82	%		108.50	%
Allowance for loan loss/ Total loans		1.33	%		1.31	%			1.33	%		1.30	%		1.40	%
Net loan charge-offs/ Average loans (ann.)		0.23	%		0.07	%			N/M			0.25	%		0.20	%
Loan loss provision/ Net charge-offs		119.86	%		163.04	%			N/M			48.54	%		0.00	%
CAPITAL & LIQUIDITY RATIOS:
Loans/ Deposits		88.50	%		93.72	%			94.52	%		96.58	%		90.46	%
Equity/ Assets		10.74	%		11.06	%			9.07	%		8.91	%		8.89	%
Tangible equity/ Tangible assets		6.64	%		6.75	%			6.73	%		6.54	%		6.44	%
END OF PERIOD BALANCES
Total loans	$	511,784			516,336				505,924			506,127			481,924
Total assets	$	717,555			684,228				664,556			662,500			646,302
Deposits	$	578,283			550,906				535,261			524,067			532,719
Stockholders equity	$	77,100			75,683				60,266			59,010			57,435
Intangibles	$	16,582			16,636				16,691			16,746			16,877
Preferred equity	$	13,983			13,983				-			-			-
Tangible equity	$	46,535			45,064				43,575			42,264			40,558
Full-time equivalent employees		198			190				195			193			197
Period end basic shares outstanding		4,881			4,875				4,875			4,875			4,874
Period end outstanding (Series A Converted)		1,451			1,451				-			-			-
AVERAGE BALANCES
Total loans	$	516,004			516,517				512,151			500,167			476,553
Total earning assets	$	605,956			600,851				598,223			594,256			569,524
Total assets	$	711,100			687,674				673,213			658,108			646,864
Deposits	$	568,885			551,906				534,841			531,786			524,145
Stockholders equity	$	76,534			64,846				59,684			58,276			56,977
Intangibles	$	16,609			16,664				16,719			16,811			17,347
Preferred equity	$	13,983			1,398				-			-			-
Tangible equity	$	45,942			46,784		��		42,965			41,465			39,630
Average diluted shares outstanding		6,379			5,044				4,900			4,893			4,894

9

SB FINANCIAL GROUP, INC.

Rate Volume Analysis - (Unaudited)

For the Three Months Ended March 31, 2015 and 2014

($ in Thousands)	Three Months Ended March 31, 2015								Three Months Ended March 31, 2014
	Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Taxable securities	$	71,884			372		2.07	%	$	75,686			309		1.63	%
Nontaxable securities		18,068			268		5.94	%		17,285			265		6.14	%
Federal funds sold		-			-		N/A			-			-		N/A
Loans, net		516,004			5,628		4.36	%		476,553			5,265		4.42	%
Total earning assets		605,956			6,268		4.14	%		569,524			5,839		4.10	%
Cash and due from banks		53,781								26,880
Allowance for loan losses		(6,845	)							(6,984	)
Premises and equipment		14,399								13,547
Other assets		43,809								43,897
Total assets	$	711,100							$	646,864
Liabilities
Savings and interest bearing demand	$	308,023			77		0.10	%	$	266,158			19		0.03	%
Time deposits		163,903			418		1.02	%		173,753			479		1.10	%
Repurchase agreements & Other		16,644			5		0.12	%		18,725			11		0.23	%
Advances from Federal Home Loan Bank		30,000			92		1.23	%		15,289			74		1.94	%
Trust preferred securities		10,310			51		1.98	%		20,620			333		6.46	%
Total interest bearing liabilities		528,880			643		0.49	%		494,545			916		0.74	%
Non interest bearing demand		96,959					0.41	%		84,234					0.63	%
Other liabilities		8,727								11,108
Total liabilities		634,566								589,887
Equity		76,534								56,977
Total liabilities and equity	$	711,100							$	646,864
Net interest income (tax equivalent basis)				$	5,625							$	4,923
Net interest income as a percent of average interest-earning assets							3.71	%							3.46	%

10