SB Financial Group, Inc. (SBFG): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear breakdown of SB Financial Group, Inc.'s business model as of late 2025, and honestly, the Q3 results give us a sharp picture of their diversified strategy. With total assets reaching about $1.49 billion as of Q2 2025, this isn't just a simple community bank; it's a financial ecosystem that pairs core deposit gathering with wealth services and title insurance, all while showing strong asset quality-criticized loans declined 18% year-over-year. The engine is clearly running hot, evidenced by Net Interest Income jumping 21% year-over-year in Q3, so if you want to see the nine building blocks that connect their 26 offices to their $1.09 billion loan book and drive that growth, check out the full canvas below.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Key Partnerships

You're looking at the structure of SB Financial Group, Inc.'s key external relationships as of late 2025. These partnerships are crucial for scaling operations and integrating recent strategic moves, like the Marblehead Bancorp deal.

Strategic partnership with Advisory Alpha for wealth management expansion.

The wealth group at SB Financial Group, Inc. is actively transitioning to a new strategic partnership with Advisory Alpha. This move is intended to bring an expanded suite of marketing materials to the table, plus the addition of a number of CFP professionals to benefit current and future clients. This is all about strengthening the high-touch brand. As of the third quarter of 2025, the wealth assets under care for SB Financial Group, Inc. surpassed $563 million, which is part of the total Assets Under Care exceeding $3.5 billion.

Core technology provider, Fiserv, for digital banking enhancements.

SB Financial Group, Inc. relies on core technology providers like Fiserv to support digital banking enhancements. While the specific financial outlay for these enhancements isn't public, the focus on modern technology is a response to the need to acquire lower-cost deposits in 2025.

Legal and financial advisors for M&A activities (e.g., Marblehead Bancorp).

The successful integration of Marblehead Bancorp, which closed on January 17, 2025, involved specific external advisors. Vorys, Sater, Seymour and Pease LLP acted as legal counsel for SB Financial Group, Inc. in that transaction. For Marblehead Bancorp, Janney Montgomery Scott LLC served as the financial advisor. This all-cash transaction was valued in aggregate at approximately $5.0 million, with Marblehead shareholders receiving $196.31 in cash per share. The acquisition immediately expanded the combined organization's asset base to approximately $1.4 billion.

The key financial metrics tied to this M&A activity and its integration are summarized below:

Correspondent banking relationships for liquidity and services.

SB Financial Group, Inc. maintains relationships that help fund loan growth. The company stated it was well-positioned to fund the majority of its 2025 loan growth with added liquidity from the Marblehead Bancorp acquisition and scheduled amortization of its bond portfolio. The Marblehead deposits were noted as quite profitable, coming over with an average cost of 1.53%.

Secondary market investors for selling originated mortgage loans.

Selling originated mortgage loans to secondary market investors is a key part of the mortgage banking revenue stream. For 2025, management projected a target of $400 million in total mortgage originations. The sale percentage of originations in the third quarter of 2025 was nearly 100%, which increased the year-to-date originated sale percentage to 88%. The gain on sale yield for the year-to-date through Q3 2025 was 2.08%. Furthermore, the company's mortgage servicing rights (MSRs) increased by nearly $1 million, or 7%, year-to-date, providing an additional $175,000 in annual revenue for 2025.

Here's a quick look at the mortgage secondary market activity:

• Projected 2025 Mortgage Originations: $400 million.
• Mortgage Sale Percentage (Q3 2025): Nearly 100%.
• Year-to-Date Originated Sale Percentage: 88%.
• Annual Revenue from MSR Increase (2025): Additional $175,000.

Finance: draft 13-week cash view by Friday.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Key Activities

You're looking to map out the core engine of SB Financial Group, Inc. (SBFG) as of late 2025. This is about the actual work they do day-to-day to generate revenue and grow the franchise, especially after integrating Marblehead Bank earlier in the year.

Full-service community banking and deposit gathering

The foundation of SB Financial Group, Inc.'s activity is running The State Bank and Trust Company, which focuses on core community banking. This involves actively gathering deposits to fund their lending activities. As of June 30, 2025, total deposits stood at $1.25 billion, representing a 12.1% increase year-over-year. The Q3 2025 results showed continued momentum, with deposits rising by $103 million, or 9%, over the prior year quarter. Importantly, $51 million of that Q3 growth was attributable to the Marblehead integration, meaning organic deposit growth was 4.5% for the quarter. To put the acquisition impact in perspective, the Q1 2025 deposit base reached a record $1.27 B, which included $56 M from Marblehead Bancorp.

Here's a snapshot of the balance sheet scale following the integration:

They are definitely focused on keeping funding costs low; the Marblehead acquisition added nearly 2,500 deposit accounts with a weighted average cost of approximately 1.2%.

Commercial, mortgage, and agricultural loan origination and servicing

Generating interest income through lending is a primary activity. Total loans reached $1.09 billion as of June 30, 2025, marking an 8.9% increase year-over-year. This marked the sixth straight quarter of sequential loan growth by Q3 2025, with loan growth over the prior year quarter at approximately $80.6 million, or 7.8%. The loan portfolio expansion in Q1 2025 was $96.7 million, or 9.8% year-over-year.

The mortgage banking segment is active in both origination and servicing. For the first half of 2025, net mortgage banking revenue totaled $3.6 million, a 6.9% increase compared to the first half of 2024. For the third quarter of 2025, mortgage originations were $67.6 million. SB Financial Group, Inc. is targeting $400M in mortgage originations for the full year 2025. The company also reported that commercial real estate (CRE) concentration constitutes less than half of total loans outstanding.

Wealth management and private client investment services

Managing assets for clients provides a crucial fee-based revenue stream, which helps diversify away from pure interest income. As of Q3 2025, Assets Under Care for SB Financial Group, Inc. surpassed $3.5 billion. This figure is broken down into $1.5 billion in bank assets, $1.5 billion in residential servicing, and wealth assets of over $60.563 billion. Looking earlier in the year, the wealth management division bolstered its assets under management by over $45 million to reach $548 million in Q1 2025, which was a 9.2% increase. The wealth group is actively transitioning to a new strategic partnership with Advisory Alpha.

Title insurance and title opinion services via Peak Title subsidiary

The title insurance activity, conducted through the Peak Title subsidiary, is a noted bright spot in fee income. Year-to-date in 2025, the revenue contribution from title services was up nearly $400,000, representing a 32% increase. This growth is meaningful given that mortgage value was only up 9% year-to-date. The company noted that internal referrals from their commercial lenders provided the title company with 28% of its total revenue year-to-date. Title insurance revenue specifically added $131,000 compared to the prior-year quarter in Q1 2025, reflecting the revenue diversification strategy.

Integrating acquired entities, like Marblehead Bank, for scale

A key activity is executing mergers and acquisitions to gain scale, with the Marblehead Bancorp acquisition closing on January 17, 2025, for approximately $5.0 million in cash. The integration of The Marblehead Bank into State Bank and Trust Company was a major operational focus, with the final step being the integration of customers into the core system on October 24, 2025. The combined organization managed approximately $1.4 billion in assets immediately following the closing. This acquisition added $18.0 million in loans and $56 million in low-cost deposits in Q1 2025. The activity of integrating the Marblehead team has been described as blending well, retaining longstanding client relationships, and maintaining strong community ties.

The company has marked its 59th consecutive quarter of profitability through Q3 2025.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Key Resources

You're looking at the core assets SB Financial Group, Inc. (SBFG) relies on to run its business as of late 2025. These aren't just line items; they are the tangible and intangible engines driving their community banking model.

Financial Capital is substantial, providing the foundation for lending and operations. As of the second quarter of 2025, the Company reported total assets reaching $1.49 billion.

The Loan Portfolio is the primary earning asset, showing solid growth. The total loan portfolio stood at $1.09 billion at the close of Q2 2025. This portfolio growth was 8.9% year-over-year.

Here's a quick look at the balance sheet scale from Q2 2025:

The Physical Network underpins the community banking aspect. State Bank & Trust Company operates a physical footprint designed for local service delivery.

• Total Bank Offices: 26
• ATMs: 26
• Loan Production Offices (LPOs): Six located throughout the Tri-State region of Ohio, Indiana, and Michigan.

The structure of SB Financial Group, Inc. is built around its key operating entities, which represent distinct resource pools:

• State Bank & Trust Company (State Bank): The primary banking subsidiary.
• SBFG Title, LLC (Peak Title): Handles title insurance and title opinions.

Human Capital is represented by the specialized professionals driving the lending and advisory services. This includes experienced commercial lenders and Certified Financial Planner (CFP) professionals who manage the complex aspects of the business, such as the commercial real estate loan segment which grew by approximately $91 million year-over-year in Q2 2025.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Value Propositions

Diversified financial services: One-stop shop for banking, mortgage, wealth, and title.

SB Financial Group, Inc. offers a full suite of services through State Bank & Trust Company and SBFG Title, LLC dba Peak Title. You get full-service community banking, mortgage banking, wealth management, private client services, and title insurance all under one umbrella.

The firm operates through 26 offices: 24 in ten Ohio counties and one in Fort Wayne, Indiana, plus loan production offices across the Tri-State region of Ohio, Indiana, and Michigan.

Deep, high-touch client relationships in local Tri-State markets.

The business model emphasizes serving consumers and small businesses locally. The integration of the Marblehead Bank deposits has remained largely intact since the January merger, showing strong relationship retention. The company is also expanding its physical presence, entering new markets like Napoleon, Ohio.

Consistent loan growth, marking six consecutive quarters of sequential growth.

The focus on disciplined lending has paid off. Loan growth over the prior year quarter was $80.6 million, which is 7.8%. This performance marks the sixth consecutive quarter of sequential loan growth. Total loans stood at $1.11 billion as of September 30, 2025.

Strong asset quality with criticized and classified loans declining by 18% YOY.

Asset quality remains a key strength. In the first quarter of 2025, criticized and classified loans showed a reduction of $1.5 million, or 18%, year-over-year. By the third quarter of 2025, nonperforming assets (NPA) were $4.9 million, representing 0.32% of total assets. The Allowance for Credit Losses (ACL) to total loans was 1.44%, providing 345% coverage of nonperforming loans.

Expanded wealth management offerings via new strategic partnership.

SB Financial Group, Inc. is strengthening its wealth management segment by transitioning to a new strategic partnership with Advisor Alpha (also referred to as Advisory Alpha). This move is intended to bring an expanded suite of materials and additional CFP professionals to benefit current and future clients. Assets Under Care surpassed $3.5 billion as of Q3 2025.

Here's a quick look at the Q3 2025 financial snapshot supporting these value drivers:

The core value proposition is supported by several operational achievements:

• Net income reached $4 million in Q3 2025.
• Marked 59th consecutive quarter of profitability.
• Net Interest Margin (NIM) held at 3.48% for Q3 2025.
• Title Revenue year-to-date contribution up $400,000, or 32%.
• Internal referrals provided 28% of total title company revenue year-to-date.

Finance: draft 13-week cash view by Friday.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Customer Relationships

SB Financial Group, Inc. (SBFG) maintains a relationship-based model, which management states continues to guide how they serve and grow the franchise. This focus is particularly evident in the successful integration following the Marblehead acquisition, where the company reported little to no customer attrition following the transition. The company operates through a network that includes 26 offices and multiple ATMs across Ohio and Indiana, plus seven loan production offices throughout the Tri-State region of Ohio, Indiana, and Michigan.

The commitment to personalized service is reflected in the ongoing refinement of their hybrid office model, which blends personalized in-market service with flexible digital and remote engagement to strengthen client connectivity. The company is actively working to reduce client churn and deliver a more intentional palette of banking services.

The success of the relationship focus translates into balance sheet growth metrics as of the third quarter of 2025:

The structure supporting lending and deposit relationships involves dedicated regional production teams. The company's efforts in this area helped drive loan growth over the prior year quarter by approximately $80.6 million, marking the sixth consecutive quarter of sequential loan growth. The focus on regional leadership and staffing levels is intended to oversee growth while driving EPS performance higher.

SB Financial Group, Inc. is enhancing its digital self-service options, including working to deliver an enhanced client's online banking experience. While specific SB Financial Group, Inc. remote deposit capture statistics for 2025 aren't detailed, the broader U.S. context shows that 16% of users make deposits via digital channels in 2025, and 77% of consumers prefer to manage accounts through a mobile app or computer.

• Title Revenue year-to-date contribution was up $400,000, or 32%, in Q3 2025.
• Internal referrals provided 28% of total title company revenue in Q3 2025.
• The core deposit base grew just under 5% in the first quarter of 2025, for an annualized growth rate of 15% when excluding public funds and the Marblehead book.
• The company reported its 59th consecutive quarter of profitability as of Q3 2025.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Channels

You're looking at how SB Financial Group, Inc. (SBFG) gets its products and services to its customers as of late 2025. This is a mix of old-school, face-to-face banking and modern digital access, which is typical for a community-focused financial holding company.

The physical footprint remains a core channel, anchored by The State Bank & Trust Company's established presence across Ohio and Indiana. You need to know the scale of this physical reach to understand their local market penetration.

The physical offices are the primary touchpoint for relationship banking, but SB Financial Group, Inc. uses specialized offices to drive lending activity. These Loan Production Offices (LPOs) are strategically placed throughout the Tri-State region of Ohio, Indiana, and Michigan to originate business without necessarily housing full-service branch operations.

Digital Channels are essential for modern convenience, even for a community bank. They provide the necessary self-service options that customers expect today. This channel includes the standard suite of digital tools.

• Online banking portal for account management.
• Mobile app for on-the-go access and transactions.
• Online education center for customer resources.

The digital offering supports the physical network; it doesn't replace it, which is a key part of their strategy to maintain local connection while offering efficiency. It's about meeting the customer where they are, whether that's in person or on their phone.

The Internal Referral System is a crucial, often less visible, channel that drives cross-selling between the bank and its subsidiary, Peak Title. This is where the structure of the holding company directly impacts revenue diversification. For the nine months ending in the third quarter of 2025, this internal flow was significant.

Here's the quick math on that internal channel performance:

• Internal referrals provided 28% of total title company revenue year-to-date 2025.

This metric shows that the commercial lenders referring business to Peak Title is a material revenue driver for the title insurance segment. The title insurance revenue itself contributed to noninterest income, which totaled $4.2 million in the third quarter of 2025. Still, you have to remember that the LPO network is what feeds the commercial lending pipeline, which then feeds the title referrals.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Customer Segments

SB Financial Group, Inc. serves a broad base of individual and corporate customers primarily across Ohio and Indiana.

The consumer segment is explicitly targeted across all generational cohorts, with strategic initiatives focused on identifying the preferences of Gen Z, Millennials, Gen X, Boomers, and Silent generations to drive lower-cost deposit acquisition in 2025.

The overall deposit base reflects the trust placed by these customers, showing a rise of nearly $103 million or 9% in total deposits year-over-year as of the third quarter of 2025. Organic deposit growth for the same period was 4.5%. Total bank assets stood at $1.5 billion as of the third quarter of 2025.

Small and medium-sized businesses (SMBs) are a core focus for State Bank, which provides a full range of financial services to them.

Commercial lending relationships are segmented, with specific metrics available for major categories as of mid-2025:

Agricultural businesses and farmers are served through agricultural lending products. The loan portfolio saw a year-over-year decline of $3.4 million in agricultural loans as of the second quarter of 2025.

Public Fund entities contribute to the deposit base, evidenced by the overall growth in deposits. The successful integration of Marblehead Bank added $51 million in deposits, which remained largely intact. The total loan portfolio increased by approximately $80.6 million, or 7.8%, over the prior year quarter ending September 30, 2025, marking the sixth consecutive quarter of sequential loan growth.

The company also serves clients through specialized services, which implies distinct high-net-worth or corporate segments:

• Wealth management assets under care surpassed $60.563 billion as of the third quarter of 2025.
• Private client services are offered.
• Title insurance services are provided through Peak Title, which closed 564 transactions year-to-date in Q2 2025.

Finance: draft 13-week cash view by Friday.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Cost Structure

The Cost Structure for SB Financial Group, Inc. (SBFG) is heavily influenced by the cost of funding its balance sheet and the operational expenses associated with its physical and digital footprint across Ohio and Indiana.

Interest Expense: This is a primary cost component. For the first half of 2025, Interest Expense totaled $12.4 million. This figure reflects the cost of deposits and other interest-bearing liabilities used to fund earning assets.

Operating Expenses: Total Operating Expense for the third quarter of 2025 was reported at $11,498 thousand, or $11.498 million. This represented a sequential decrease of approximately 3% compared to the linked quarter. Management guided for fourth quarter 2025 Noninterest Expense (NIE) to be around $11.5 million.

Personnel Costs: These costs cover salaries and benefits for staff supporting the community banking, mortgage banking, wealth management, and title insurance services. SB Financial Group, Inc. maintains a physical presence through 26 offices across Ohio and Indiana. For the nine months ended September 30, 2025, total noninterest expense growth, excluding one-time merger costs, was 9.5% year-to-date.

Technology Costs: Investment in core systems, such as the relationship with Fiserv, and ongoing digital platform enhancements are necessary to maintain competitive service delivery. These fall within the broader noninterest expense category, which management noted was up 4.5% year-over-year in Q3 2025, driven by salaries, equipment, and professional fees.

Occupancy and Equipment Costs: These cover the fixed and variable costs associated with the physical branch network of 26 offices. These costs are bundled within the overall noninterest expense structure.

Here's a look at the key expense and revenue drivers for the nine months ended September 30, 2025, compared to the prior year period:

The cost of funding, reflected in Interest Expense, is managed by a lower average rate on interest-bearing liabilities, which was 2.33% for the first nine months of 2025, down from 2.52% in the prior year first nine months.

The operational efficiency is tracked by the efficiency ratio, which stood at 69.0% in Q3 2025. This ratio is calculated by dividing noninterest expense by total operating revenue.

Key components contributing to the noninterest expense include:

• Salaries and benefits for staff across 26 offices.
• Equipment costs related to the branch network and internal operations.
• Professional fees, which are part of the 4.5% year-over-year noninterest expense increase in Q3 2025.
• Technology investments in core systems and digital platforms.

Finance: draft 13-week cash view by Friday.

SB Financial Group, Inc. (SBFG) - Canvas Business Model: Revenue Streams

You're looking at the core ways SB Financial Group, Inc. brings in money as of late 2025. The business model heavily relies on traditional banking income, but fee-based services are definitely adding to the top line.

Net Interest Income remains the primary engine. For the third quarter of 2025, this figure reached $12.3 million, which is a solid 21% increase year-over-year (YOY) from the $10.2 million reported in the third quarter of 2024. This growth is directly tied to the balance sheet expansion; loan growth for the quarter was $80.6 million, or 7.8% YOY, marking the sixth consecutive quarter of sequential loan growth. Loan income topped $16 million for the second quarter in a row.

The interest earned comes from a diversified lending base. Here's a quick look at the key drivers and performance metrics around that loan interest:

Next up is Noninterest Income, which totaled $4.2 million in Q3 2025, showing a 2.9% increase from the prior-year quarter. This income stream is supported by several distinct fee-based services that help diversify SB Financial Group, Inc.'s revenue base.

The components driving this noninterest income include:

• Gains on sales of mortgage loans.
• Loan servicing fees, which added $914,000 in Q3 2025.
• Title insurance revenue, up nearly $400,000 or 32% year-to-date.
• Wealth management fees.
• General customer service fees.

Specifically regarding mortgage-related revenue, the net mortgage banking revenue for the quarter was $1.5 million. Furthermore, the company's mortgage servicing rights increased by nearly $1 million or 7% over the first nine months of 2025, translating to an additional $175,000 in annual revenue for 2025. It's defintely a mix of traditional banking and service fees that keeps the revenue stream flowing.