[Management View]
SB Financial Group reported a net income of $3.9 million with a diluted EPS of $0.60, marking a 28% increase from Q2 2024. The company emphasized successful integration of the Marblehead acquisition, maintaining nearly full deposit retention. Strategic priorities focus on organic growth, margin expansion, and market share capture amid regional disruptions.

[Outlook]
Management projects further net interest margin expansion towards 3.7% and anticipates positive resolutions on nonperforming credits in Q3 2025, potentially reducing provision expenses. The company plans to slow down share buybacks to preserve capital for potential M&A and organic growth opportunities.

[Financial Performance]
Year-over-year, net interest income increased by over 25% to $12.1 million. Total loan growth was approximately $90 million, or 8.9%, and deposits grew by $135 million, or 12%. Noninterest income rose by 15.1% to $5 million, driven by mortgage gains and service fees.

[Q&A Highlights]
Question 1: Could you comment on the mortgage outlook, particularly in Indianapolis?
Answer: SB Financial is optimistic about reaching $400 million in mortgage originations, driven by high-producing markets like Cincinnati and Indianapolis. The company has 28-29 MLOs and a strong support system, with potential for significant growth if interest rates decrease.

Question 2: What is the outlook for loan growth in the next 12-18 months?
Answer: Columbus remains a key growth area, particularly in commercial real estate. The company is optimistic about loan growth, supported by a seasoned lending team and opportunities arising from market disruptions.

Question 3: How do you view the net interest margin outlook?
Answer: The margin has improved significantly, with expectations to stabilize around 3.7%. The company has retained deposits effectively and anticipates continued repricing benefits from the loan book.

Question 4: What are your thoughts on capital allocation between M&A and share repurchases?
Answer: While organic growth is preferred, SB Financial is open to M&A opportunities. The company plans to slow share repurchases to maintain capital for potential acquisitions and organic expansion.

[Sentiment Analysis]
Analysts and management expressed optimism about the company's growth prospects, particularly in mortgage and loan growth. The tone was positive, with confidence in strategic initiatives and market opportunities.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-----------------------------|---------|---------|------------|
| Net Income | $3.9M | - | +28% |
| Diluted EPS | $0.60 | - | +28% |
| Net Interest Income | $12.1M | $9.7M | +25% |
| Total Loan Growth | $90M | - | +8.9% |
| Total Deposits | $135M | - | +12% |
| Noninterest Income | $5M | - | +15.1% |

[Risks and Concerns]
Potential risks include competitive pressures in key markets and the need to manage funding costs effectively. The company also faces challenges in maintaining asset quality and navigating economic uncertainties.

[Final Takeaway]
SB Financial Group demonstrated strong financial performance in Q2 2025, driven by strategic expansion and effective integration of acquisitions. The company is well-positioned for continued growth, with a focus on organic expansion and potential M&A opportunities. Management's optimistic outlook is supported by robust loan growth and margin expansion, although competitive and economic challenges remain.