About SB Financial Group

SB Financial Group, Inc., through its subsidiaries, engages in various financial activities, including commercial banking and wealth management services. Subsidiaries State Bank and Trust Company (State Bank) State Bank offers a full range of commercial banking services, including checking accounts, savings accounts, money market accounts and time certificates of deposit; automatic teller machines; commercial, consumer, agricultural and residential mortgage loans; personal and corporate trust services; commercial leasing; bank credit card services; safe deposit box rentals; internet banking; private client group services; and other personalized banking services. The trust and financial services division of State Bank offers various trust and financial services, including asset management services for individuals and corporate employee benefit plans, as well as brokerage services through Cetera Investment Services, an unaffiliated company. State Bank operates banking centers, located within the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Williams and Wood, and one banking center located in Allen County, Indiana. State Bank also operates loan production offices, located in Franklin and Lucas counties, Ohio, Boone, Hamilton and Steuben counties, Indiana, and Monroe County, Michigan. SBFG Title, LLC SBFG Title, LLC, doing business as Peak Title Agency (SBFG Title) was formed as an Ohio limited liability company and owns all of the assets and real estate of an Ohio-based title agency. SBFG Title provides title insurance and operates three locations located within the Ohio counties of Franklin and Williams, and in Hamilton County, Indiana. SBT Insurance SBT Insurance, LLC (SBI) is an Ohio corporation and wholly owned subsidiary of State Bank. SBI is an insurance company that engages in the sale of insurance products to retail and commercial customers of State Bank. SB Captive SB Captive, Inc. (SB Captive) is a Nevada corporation and wholly owned subsidiary of SB Financial Group, Inc. SB Captive is a self-insurance company that provides coverage to State Bank and SB Financial Group. Loans As of December 31, 2022, the company’s loan portfolio included commercial and industrial; commercial real estate - owner occupied; commercial real estate - nonowner occupied; agricultural; residential real estate; home equity line of credit (HELOC); and consumer. The company makes commercial, real estate and installment loans to customers located mainly in the Tri-State region of Ohio, Indiana and Michigan. Commercial loans include loans collateralized by commercial real estate, business assets and, in the case of agricultural loans, crops and farm equipment and the loans are expected to be repaid from cash flow from operations of businesses. Investment Portfolio As of December 31, 2022, the company’s investment portfolio included the U.S. treasury and government agencies; mortgage-backed securities; state and political subdivisions; and other corporate securities. Supervision and Regulation The company is a financial holding company subject to regulation under the Bank Holding Company Act of 1956, as amended (Bank Holding Company Act), and to inspection, examination and supervision by the Board of Governors of the Federal Reserve System (the Federal Reserve Board or FRB). As a member of the Federal Home Loan Bank (FHLB) of Cincinnati, State Bank must maintain certain minimum investments in the capital stock of the FHLB of Cincinnati. The FRB’s Regulation W and various other legal limitations restrict State Bank from lending funds to, or engaging in other ‘covered transactions’ with, the company (or any other affiliate), limiting such covered transactions with any one affiliate to 10 percent of State Bank’s capital and surplus and limiting all such covered transactions with all affiliates to 20 percent of State Bank’s capital and surplus. As insurer, the Federal Deposit Insurance Corporation (FDIC) is authorized to conduct examinations of and to require reporting by insured institutions, including State Bank, to prohibit any insured institution from engaging in any activity the FDIC determines to pose a threat to the Deposit Insurance Fund (DIF), and to take enforcement actions against insured institutions. The Community Reinvestment Act (CRA) requires State Bank’s primary federal regulatory agency, the FRB, to assess State Bank’s record in meeting the credit needs of the communities served by State Bank. The company is subject to the jurisdiction of the Securities and Exchange Commission (the SEC) and certain state securities authorities relating to the offering and the sale of its securities. The company is subject to the registration, reporting and other regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (Exchange Act), and the rules adopted by the SEC under those acts. History SB Financial Group, Inc. was founded in 1902. The company was incorporated in 1983. It was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in 2013.