Investor Presentation January 2022
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 2 Forward-Looking Statements Statements contained in this investor presentation that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, the scope and duration of economic contraction as a result of the COVID-19 pandemic and its effects on the Company’s business and that of the Company’s customers, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation. Explanation of Use of Non-GAAP Financial Measures In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), we use, and this investor presentation contains or references, certain non-GAAP financial measures. We believe these non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. Although we believe that these non- GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non- GAAP measures which may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.
Company Overview
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 4 At a Glance – CB Financial Services, Inc. Shareholder Information Share Price $24.20 Shares Outstanding 5.3M Public Float 4.7M Market Cap 127.3M Total Stockholder’s Equity $133.1M Book Value per Share $25.31 Tangible Book Value per Share (1) $22.45 Price to Book Value 0.96X Price to Tangible Book Value (1) 1.08X P/E (FY 2021 EPS of $2.15) 11.3X P/E (FY 2021 Adjusted EPS of $1.95) (1) 12.4X • Community Bank headquartered in Southwestern PA • Founded in 1901 • Community Bank operates 11 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties in southwestern Pennsylvania, and three offices in Marshall and Ohio Counties in West Virginia. • Financial Overview – Assets: $1.43 billion – Loans: $1.02 billion – Deposits: $1.23 billion • Focused on investing in organic growth initiatives while also returning capital to shareholders via share repurchases. Corporate Overview • All daily trading information/multiples as of January 25, 2022 • All other financial information as of December 31, 2021 (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure.
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 5 Community Bank Mission Statement Community Bank is an exceptional, independent financial institution. We will provide our customers with valuable, appropriate products and outstanding personal service. Community Bank strives to continue to grow and continue to create value for our shareholders. Our employees will be treated fairly and given opportunities for personal growth. We will be closely involved in improving our communities.
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 6 Investment Thesis: Well-Positioned to Achieve Better than Peer Results Solid Fundamental Leadership ◦ Executive team with an average of over 25 years experience in lending, finance, and credit ◦ Led by CEO John Montgomery, an accomplished bank executive with over 30 years of experience Market Presence with Brand Recognition ◦ 120 Year History ◦ Serving Stable Southwestern PA market Blending Efficiency with Technology ◦ Optimization efforts implemented in 2020-2021 ◦ Improved profitability while continuing to invest in digital marketing and technology
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 7 Diversified Business • Well-positioned to serve the needs of small and medium- sized businesses across our footprint • Growing presence within the Pittsburgh MSA • Strong asset quality Commercial Banking Retail Banking Mortgage Banking Insurance Brokerage • Active mortgage origination platform with dedicated mortgage originators • Robust housing market • Expanding mortgage banking platform into legacy markets • Continued momentum and growth following the Beynon Insurance acquisition in August 2018 • Complementary to commercial and retail banking business • Currently operating in Southwestern PA, Central WV, Ohio River Valley
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 8 Leveraging a Rich History and Community Presence 1901 1987 2006 2007-2019 2020 2021 - The Bank was originally chartered in 1901 as The First National Bank of Carmichaels, serving southwestern PA and local community Changed name to Community Bank, National Association Community Bank weathered the financial crisis, continued to expand its community presence, and launched new insurance and wealth management services The onset of COVID-19 increased demand for fintech solutions and mobile banking services Community Bank Appoints John Montgomery President & CEO in August 2020 The Beginning and Formation of the Bank Branch Network Supporting SW Pennsylvania, WV, and OH Global Pandemic Accelerates Need for Revitalization Completed a charter conversion from a national bank to a Pennsylvania-chartered commercial bank wholly- owned by the Company Community Bank completed optimization of its current branch network through the consolidation of six and sale of two branch locations Community Bank engaged with third- party workflow optimization experts to assist in implementing robotic process automations (RPAs) and more effective sales management that it expects will improve operational efficiencies and grow revenue in the near and long-term Implementation of Strategic Initiatives Aimed at Optimizing Branch Network and Positioning Community Bank for the Future
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 9 ▪ Population of approximately 2.3 million with a median household income of nearly $64,000, which is projected to increase 10.2% in the next 5 years ▪ Large market for energy, healthcare, technology, and manufacturing companies(1) ▪ Highly educated labor force from Carnegie Mellon University, University of Pittsburgh, and Duquesne University(1) ▪ Fortune 500 companies headquartered in Pittsburgh MSA include: Kraft Heinz, PNC Financial Services, PPG Industries, U.S. Steel, Alcoa, Dick’s Sporting Goods, and WESCO International(2) ▪ Carnegie Mellon University and the University of Pittsburgh have helped to bring tech jobs and innovation to the area and tech giants like Uber and Facebook have opened offices in Pittsburgh ▪ Substantial medical services investment is happening regionally: – UPMC is investing $2 billion in 3 new specialty hospitals in Pittsburgh and is constructing a new hospital facility in Washington County, PA – UPMC said it plans to break ground on the 900,000-square-foot heart and transplant hospital in the second half of 2022, according to the Pittsburgh Business Journal. Construction is slated to take about four years, and UPMC expects the facility to open in late 2026. Large Employers in Operating AreaPittsburgh Metropolitan Area Attractive Operating Markets ~ New Infrastructure Opening of Southern Beltway from I-79 in Washington County to Pittsburgh International Airport ▪ Pittsburgh's first major highway in decades ▪ 110,000 drivers connected between Washington County and Pittsburgh International Airport
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 10 • President & CEO; appointed in August 2020 • Accomplished bank executive with over 30 years of experience • Previously Chief Credit Officer at First Bank, a privately held $6 Billion bank located in St. Louis, Missouri. Jamie Prah • Executive Vice President & Chief Financial Officer • 20+ years of banking experience with 9 years in CEO/CFO role • Joined CBFV in May 2019; previously President & CEO of Union Building & Loan Savings Bank and CFO of FFCO • Responsible for financial oversight, SEC reporting, strategic planning and regulatory reporting oversight John Montgomery Jennifer GeorgeRalph Burchianti • Senior Executive Vice President & Chief Credit Officer • Director since 2018 • Responsibilities include oversight of credit & underwriting policies for the organization • Nearly 35 years of experience with CBFV • Senior Executive Vice President & Chief Operations Officer • Appointed SEVP in October 2021, EVP – COO in May 2019, joined CBFV in October 2014 during FFCO merger as Senior Vice President – Retail, Human Resources & Compliance • 20+ years banking experience with a background in Accounting. Specializing in operations, BSA, compliance & human resources • Previously a Senior Vice President – Chief Risk Officer & Vice President – Bank Operations at FFCO Executive Leadership Team
2021 Update
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 12 2021: Goals and Accomplishments 01 03 02 Well-positioned to capitalize on continued U.S. housing market recovery Continued Progress on Optimization Efforts – Significant reduction in non-interest expense and salaries while still expanding revenue producing initiatives – Consolidated six branch locations effective June 30, 2021 – Completed the sale of two West Virginia locations on December 10, 2021 Grow Loans and Deposits – Total loans, excluding PPP loans, increased $27.4 million, or 11.3% annualized, from September 30, 2021 – Loan growth is paramount given a low-interest rate environment and excess cash – Deposits grew year-over-year inclusive of the branch sale of $102.8 million of deposits Active Stock Buyback Plan – On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company's outstanding common stock – As of January 21, 2022, the Company had repurchased $4.5 million of the Company's common stock (192,389 shares) at an average price of $23.34 per share – Intend to use net proceeds of $14.6 million from subordinated debt offering in December 2021 to fund continued execution of share buyback plan subject to market conditions 02 Increased Securities Purchases to Utilize Available Liquidity – Increased $79.6 million, or 54.7%, to $225.0 million at December 31, 2021 from December 31, 2020 – Expected $650,000 increase in pre-tax income, or 6bps of incremental margin to bottom line annually
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 13 Fourth Quarter 2021 Highlights Solid Profitability During Optimization Efforts (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. (comparison to December 31, 2020) Reported Adjusted (non-GAAP) $2.8M Reported Adjusted (non-GAAP)1 NI $7.0M $0.53EPS $1.31 0.76% 1.87% 8.55% 20.95% ROAA ROAE Net Income (NI) Loans and Deposits Book Value Q4 2021 net income (GAAP) was $7.0M, or $1.31 per diluted share, compared to $3.1M, or $0.57 per diluted share, in the prior year period Adjusted net income (non-GAAP) was $2.8M, or $0.53 per diluted share, compared to $3.1M, or $0.58 per diluted share Total loans as of December 31, 2021 were $1.02B, a decrease of $24.0M compared to the prior year end Total deposits as of December 31, 2021 were $1.23B, an increase of $2.0M compared to the prior year end Book value per share was $25.31 at December 31, 2021, compared to $24.76 at the prior year end Tangible book value per share was $22.45 at December 31, 2021, compared to $21.42 at the prior year end (1). 192,389Shares Repurchased (at January 21, 2022)
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 14 Branch Optimization and Operational Efficiency Efforts Expected Costs / Savings Total non-recurring pre-tax costs during 2021 of $7.5 million. This cost excludes the impact of the realized premium on deposits from the sale of branches of $5.2 million in Q4 2021. CB anticipates these ongoing savings being incremental to net income beginning in 2022. Writedown on fixed assets $2.3 Branch Optimization: $3.0 Million Operational Efficiency and Revenue Generation: $2.5 – 3.5 Million Impairment of intangible assets $1.2 Contracted services $2.8 Employee severance costs $0.3 Branch lease impairment $0.2 Legal and professional fees $0.4 Data processing fees $0.1 Other $0.2 Total $7.5 FY 2021 Expenses ($ millions) Expected Savings in 2022 and Future Years
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 15 Branch Optimization and Operational Efficiency Initiative Management has consolidated six branches and sold two others: Consolidation • Monongahela, PA • Perryopolis, PA • Pioneer, PA • Southpointe, PA • Bellaire, OH • Wellsburg, WV Divestiture: • New Martinsville, WV • Buckhannon, WV A comprehensive review of Community Bank’s branch network and operating environment has been completed with the following priorities: • Improve profitability • Improve efficiency • Investment in digital marketing and technology • Increased automation in back-office operations • Thorough evaluation of individualized processes and identified 185 specific areas for improvement, including: ◦ Infrastructure / Client experience improvements • Employees focused on customers / clients Identifying Solutions to Improve Operating Performance Branch Consolidation and Divestitures Support Brand While Enhancing Customer Loyalty and Engagement From the Top of the Organization to Every ATM!
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 16 Increasing Efficiency In Our Branch Network ◦ Reduced overall branch locations from 24 to 14 over the past 7 quarters ◦ Gaining traction in reduction of non- interest expense and salaries ◦ Overall deposits grew inclusive of the sale of $102.8 million of deposits from two branches sold in Q4 2021 Branch Optimization Efforts $46,110 $51,910 $54,502 $55,662 $58,385 $79,757 $80,488 $87,615 Total Deposits Deposits Per Branch 03/31/20 06/30/20 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 $1,000,000 $1,050,000 $1,100,000 $1,150,000 $1,200,000 $1,250,000 $1,300,000 $1,350,000 $— $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 17 Divestiture of Two West Virginia Branches Completed Q4 2021 Purchase and Assumption Agreement with Citizens Bank of West Virginia, Inc. Citizens assumed certain deposit liabilities and acquired certain loans, as well as cash, real property, personal property and other fixed assets associated with the two branches. Deposit and loan balances at the branch locations as of closing were $102.8 million and $6.1 million, respectively. Divestiture closed in the fourth quarter of 2021. Citizens paid a 5% deposit premium, totaling $5.2 million on the total deposits transferred. Allows for Community Bank to focus on its core markets surrounding Southwestern PA as well as advance efficiency throughout the organization. Branch Optimization Initiative
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 18 Revenue Generating Initiatives GOAL: Leverage strong brand recognition and lending relationships to support organic loan growth and enhance revenue generating potential in CB’s core markets As part of optimization initiatives and following COVID-19, we have been more selective on growing new loans while implementing strategic steps to take advantage of economic recovery in Southwestern PA and in the Ohio Valley. March 2021 April 2021 April 2021 July 2021 New CRM Process Implemented a multi-faceted sales process for loan officers from identification to closing Milestone Leveraging CB’s upcoming 120th anniversary to generate awareness Loan Pipeline Better identification measures for loan pipeline Data Evaluation Re-evaluated data set for commercial loan leads Moving Forward Identify Talent Productivity Management Leverage Resilient and Scalable Franchise Sep 2021 Lending Initiatives Efficiency in indirect auto loan process while not sacrificing credit quality
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 19 Revenue Metrics Benefiting From Optimization Efforts ▪ Total Interest and Dividend Income, plus Insurance Commissions, continue to grow ▪ Completion of optimization initiative in 2021 positions CBFV well going into 2022 Improving Returns on Our Human Capital
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 20 • Empower our experienced, high-quality employees to provide superior customer service in all aspects of our business ◦ Net Promoter Score of 45 vs. a U.S. bank average of 35 (higher number represents an increasingly satisfied customer base) • Create a sales and service culture which builds full relationships with our customers • Utilize technology investments to enhance speed of process while improving customer experience • Enhance profitability and efficiency potential while continuing to invest for future growth • Continue our track record of opportunistic growth in the robust Pittsburgh MSA and across our footprint • Evolve toward more electronic/digital products and processes driving greater efficiency and expand our brand awareness in our market by utilizing digital and other outlets • Leverage our credit culture and strong loan underwriting as a foundation to uphold our asset quality metrics Building on Core Strengths Be the Community Bank of choice across our footprint for residents and small and medium-sized businesses
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 21 ZIRR Creates NIM Pressures on All Banks Disruption by Technology and FinTech Online and Mobile Delivery of Services is Essential Evaluating Market Changes ~ Need to Adapt Changing Consumer Behavior Requirements for Instant Service to Fulfill Expectations (One Click) 0%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 22 Financial Update – Q4 2021 @jamie 2018 FY 2019 FY 2020 FY 2021 FY Q4 2020 Q4 2021 ($000s except per share) 12/31/18 12/31/19 12/31/20 12/31/21 12/31/20 12/31/21 Balance Sheet Total Assets $ 1,281,701 $ 1,321,537 $ 1,416,720 $ 1,425,479 $ 1,416,720 $ 1,425,479 Total Loans 912,872 952,496 1,044,753 1,020,796 1,044,753 1,020,796 Total Deposits 1,086,658 1,118,359 1,224,569 1,226,613 1,224,569 1,226,613 Tangible Common Equity(2) 96,545 112,145 116,399 118,097 116,399 118,097 Capital Ratios (%) Loans/ Deposits 84.0 % 85.2 % 85.3 % 83.2 % 85.3 % 83.2 % Tangible. Common Equity / Tangible Assets(2) 7.78 8.74 8.32 8.37 8.32 8.37 Tier 1 Ratio(3) 11.4 11.4 11.8 12.0 11.8 12.0 Total Capital Ratio(3) 12.6 12.5 13.0 13.2 13.0 13.2 Asset Quality (%)(1) NPAs/ Assets 0.56 % 0.42 % 1.04 % 0.51 % 1.04 % 0.51 % NCOs/ Avg Loans 0.21 0.05 0.11 0.01 0.39 0.03 Reserves/ Nonaccrual Loans 291 340 117 233 117 233 Profitability Net Income (Loss) $ 7,052 $ 14,327 $ (10,640) $ 11,570 $ 3,079 $ 6,965 ROAA 0.61 % 1.09 % (0.77) % 0.79 % 0.87 % 1.87 % PTPP ROAA(2) 0.96 1.28 1.05 1.16 1.11 2.41 ROAE 5.91 9.89 (7.18) 8.66 9.13 20.95 ROATCE(2) 9.21 15.09 8.86 12.54 12.42 25.22 Net Interest Margin (FTE)(2) 3.59 3.64 3.32 2.94 3.22 2.96 Adjusted Efficiency Ratio(2) 71.1 63.8 68.1 74.2 68.1 69.7 Diluted EPS $ 1.40 $ 2.63 $ (1.97) $ 2.15 $ 0.57 $ 1.31 TBV Per Share(2) 17.77 20.52 21.42 22.45 21.42 22.45 • Diluted EPS (GAAP) for Q4 2021 was $1.31, compared to $0.57 in the prior year period • NIM (GAAP) decreased 26 bps year-over-year to 2.95% compared with Q4 2020 of 3.21% on declining asset yields slightly offset by lower interest-bearing deposit costs • Total loans (including Payroll Protection Program (“PPP”) loans) were $1.02 billion, a decrease of $24.0 million compared to prior year end • Total loans (excluding PPP loans) were $996.3 million, a increase of $6.6 million compared to the prior year end • Total deposits were $1.23 billion, an increase of $2.0 million compared to the prior year end • Total assets increased to $1.43 billion, compared to $1.42 billion at the prior year end. • Regulatory capital levels remain well capitalized. (1) NPLs include nonaccrual loans, 90+ days past due loans and TDRs. NPAs include NPLs and OREO. (2) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. (3) Regulatory capital ratios are bank-level.
Key Financial Metrics
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 24 ◦ Continuing to drive organic loan growth without sacrificing credit underwriting standards ◦ Providing personalized customer engagement that leads to repeat and referral business ◦ Focus on growing core deposits ◦ New competitive core system ◦ Branch optimization Operating Initiatives Have Lead to Consistent Growth with a High-Quality Balance Sheet ($ in m ill io ns ) Total Assets $830.7 $846.1 $934.5 $1,281.7 $1,321.5 $1,416.7 $1,425.5 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 $600 $800 $1,000 $1,200 $1,400 $1,600
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 25 Expertise in Commercial Real Estate Commercial & Industrial 8.7% Real Estate- Construction 8.3% Real Estate- Commercial 38.4% Real Estate- Residential 31.4% Consumer 12.0% Other 1.1% Loan Growth Trend and CRE Loan Composition (as of December 31, 2021) ($ in m ill io ns ) Total Loans $683.4 $681.9 $744.4 $912.9 $952.5 $1,044.8 $1,020.8 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 $1,100.0
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 26 Industry CRE Portfolio Owner Occupied CRE Loans by Industry – $90.7M Non-Owner Occupied CRE Loans by Industry – $301.4M Source: Company information as of 12/31/21 Retail Space 26.8% Warehouse Space 21.7% Other Non-Farm/ Non-Residential 17.0% Medical Facilities 9.2% Office Space 6.7% Churches 4.6% Senior Housing 4.1% Manufacturing 3.6% Restaurants 2.8% Other 3.6% Multifamily 26.1% Retail Space 23.8% Office Space 12.6% Warehouse Space 8.8% Manufacturing 6.9% Hotels 5.8% Other Non-Farm/ Non-Residential 5.0% Medical Facilities 4.0% Restaurants 3.0% Oil and Gas 2.3% Senior Housing 1.3% Other 0.5%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 27 Industry C&I Portfolio C&I Loans by Industry – $64.5M excl. PPP Source: Company information as of 12/31/21 Arts, Entertainment and Recreation 11% Educational Services 10% Finance and Insurance 9% Oil and Gas 9% Professional, Scientific, and Technical Services 9% Manufacturing 9% Real Estate Rental and Leasing 8% Construction 7% Senior Housing 7% Wholesale Trade 7% Health Care and Social Assistance 5% Retail Trade 3% Utilities 2% Transportation and Warehousing 2% Other Services 2% Information 1%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 28 Total Deposits and Deposit Composition (as of December 31, 2021) ($ in m ill io ns ) Total Deposits $679.3 $698.2 $773.3 $1,086.7 $1,118.4 $1,224.6 $1,226.6 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 Deposit Composition Non-Interest Bearing Demand Deposits 31.5% Interest Bearing Demand Deposits 22.2% Money Market Accounts 15.7% Savings Accounts 19.5% Time Deposits 11.1%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 29 Asset Quality Trends NCOs (Recoveries) / Average LoansNon-Current Loans / Total Loans Allowance for Loan Losses to Total Loans NPAs / Total Assets 1.04% 1.03% 1.26% 0.85% 0.49% 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 0.39% 0.02% (0.01)% (0.01)% 0.03% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 (0.05)% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 1.22% 1.22% 1.15% 1.16% 1.13% 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 1.10% 1.15% 1.20% 1.25% 1.04% 0.98% 1.07% 0.74% 0.51% 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 0.25% 0.50% 0.75% 1.00% 1.25%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 30 Revenue Diversification • Noninterest income sources comprised approximately 22.3% of total operating revenue during 2021; provides stable revenue stream • FY 2021 Noninterest income included a $5.2 million non-recurring, gain resulting from the sale of two branches $ in M ill io ns Total Revenue - Five Quarter Trend ($M) $10.6 $10.0 $9.9 $10.0 $10.2 $2.8 $3.2 $2.2 $2.2 $8.7 Net Interest Income Non Interest Income Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Q4 2021 - Noninterest Income Mix (000's) Insurance Commissions $1,618 Net Gain on Sales of Loans $977 Net Gain on Purchased Tax Credits $17 Net Gain on Securities $44 Other Income $29 Other Commissions $90 Income from Bank- Owned Life Insurance $142 Service Fees $569
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 31 Net Income (Loss) and Adjusted Net Income(1) – Last 5 Quarters (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. Net Income (Loss) $ in 000's $3,079 $2,845 $1,983 $6,965 $(223) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $(1,000) $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Adjusted Net Income (1) $ in 000's $3,119 $2,492 $3,217 $1,966 $2,843 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 32 EPS - Diluted and Adjusted EPS - Diluted(1) – Last 5 Quarters (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. EPS - Diluted 0.57 0.52 (0.04) 0.37 1.31 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 (0.25) 0.00 0.25 0.50 0.75 1.00 1.25 1.50 Adjusted EPS - Diluted (1) 0.58 0.46 0.59 0.36 0.53 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 33 Net Interest Margin (FTE)(1) (1) Net Interest Margin (GAAP) was 3.21%, 3.04%, 2.84%, 2.88%, and 2.95%, respectively, for the same time periods. 3.56% 3.17%3.22% 2.96% 0.48% 0.31% Yield on Earning Assets Net Interest Margin Cost of Funds Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 34 Adjusted Efficiency Ratio(1) (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. Efficiency Ratio (GAAP) was 72.51%, 71.44%, 112.91%, 80.05%, and 52.71%, respectively, for the same time periods. 68.06% 69.73% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 60.00% 65.00% 70.00% 75.00% 80.00% 85.00%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 35 Adjusted Return on Average Assets – ROAA(1) Adjusted Return on Average Equity – ROAE(1) (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. ROAA (GAAP) was 0.87%, 0.81%, (0.06)%, 0.54% and 1.87%, respectively, for the same time periods. ROAE (GAAP) was 9.13%, 8.54%, (0.66)%, 5.93%, and 20.95%, respectively, for the same time periods. 0.88% 0.76% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 9.25% 8.55% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 36 Strong Capital Ratios (Community Bank) 11.43% 11.43% 12.54% 7.85% 11.79% 11.79% 13.04% 7.81% 11.95% 11.95% 13.18% 7.76% December 31, 2019 December 31, 2020 December 31, 2021 Common Equity Tier 1 Capital (to Risk Weighted Assets) Tier 1 Capital (to Risk Weighted Assets) Total Capital (to Risk Weighted Assets) Tier 1 Leverage (to Adjusted Total Assets) 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 37 Interest Rate Risk Sensitivity Estimated % Change in Net Interest Income Over: 0 – 12 Months (1) 13 – 24 Months (2) Change in Interest Rates Actual Actual Up 400 bps 16.95% 23.44% Up 300 bps 14.30% 19.32% Up 200 bps 10.27% 13.93% Up 100 bps 4.31% 6.49% Down 100 bps (6.80)% (9.01)% Source: Company information as of 12/31/21. (1) Assumes a parallel shift in the yield curve over 12 months, with no change thereafter. (2) Assumes a parallel shift in the yield curve over 24 months, with no change thereafter. • The sensitivity is measured as a percentage change in net interest income given the stated changes in interest rates compared to net interest income with rates unchanged in the same period
Moving Forward – Building a Stronger Community Investing for the Future Adaptive to New Consumer Expectations Engaging with Loyal Customers and Winning New Ones
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 39 Contact Information Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 Investor Relations Jeremy Hellman, CFA Phone: (212) 836-9626 Email: jhellman@equityny.com NASDAQ Gal Market: CBFV 100 N. Market Street Carmichaels, PA 15320 Phone: 724-966-5041 Fax: 724-966-7867
Appendix
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 41 Selected Consolidated Financial Information (Dollars in thousands) (Unaudited) Selected Financial Condition Data 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 ASSETS Cash and Due From Banks $ 119,674 $ 173,523 $ 172,010 $ 230,000 $ 160,911 Securities 224,974 221,351 208,472 142,156 145,400 Loans Held for Sale — 17,407 11,409 — — Loans Real Estate: Residential 320,798 317,373 322,480 339,596 344,142 Commercial 392,124 379,621 360,518 370,118 373,555 Construction 85,028 78,075 85,187 77,714 72,600 Commercial and Industrial PPP 24,523 32,703 49,525 60,380 55,096 Other Commercial and Industrial 64,487 69,657 70,666 68,551 71,717 Consumer 122,152 112,087 106,404 111,650 113,854 Other 11,684 12,083 12,666 13,688 13,789 Total Loans 1,020,796 1,001,599 1,007,446 1,041,697 1,044,753 Allowance for Loan Losses (11,582) (11,581) (11,544) (12,725) (12,771) Loans, Net 1,009,214 990,018 995,902 1,028,972 1,031,982 Premises and Equipment Held for Sale — 795 795 — — Premises and Equipment, Net 18,399 18,502 18,682 20,240 20,302 Bank-Owned Life Insurance 25,332 25,190 25,052 24,916 24,779 Goodwill 9,732 9,732 9,732 9,732 9,732 Intangible Assets, Net 5,295 5,740 6,186 7,867 8,399 Accrued Interest and Other Assets 12,859 12,560 13,373 12,938 15,215 Total Assets $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 $ 1,416,720 LIABILITIES Deposits Held for Sale $ — $ 102,647 $ 102,557 $ — $ — Deposits Non-Interest Bearing Demand Deposits 385,775 373,320 368,452 377,137 340,569 Interest Bearing Demand Accounts 272,518 244,004 246,920 280,929 259,870 Money Market Accounts 192,125 190,426 176,824 198,975 199,029 Savings Accounts 239,482 232,679 226,639 246,725 235,088 Time Deposits 136,713 144,727 154,718 180,697 190,013 Total Deposits 1,226,613 1,185,156 1,173,553 1,284,463 1,224,569 Short-Term Borrowings 39,266 42,623 39,054 45,352 41,055 Other Borrowings 17,601 6,000 6,000 6,000 8,000 Accrued Interest and Other Liabilities 8,875 7,405 7,913 7,230 8,566 Total Liabilities 1,292,355 1,343,831 1,329,077 1,343,045 1,282,190 STOCKHOLDERS’ EQUITY $ 133,124 $ 130,987 $ 132,536 $ 133,776 $ 134,530
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 42 Selected Consolidated Financial Information Three Months Ended Year Ended Selected Operating Data 12/31/21 09/30/21 06/30/21 03/31/21 12/31/20 12/31/21 12/31/20 Interest and Dividend Income Loans, Including Fees 9,904 9,718 9,936 10,146 10,833 39,704 42,883 Securities: Taxable 866 843 635 646 725 2,990 3,619 Tax-Exempt 66 71 74 78 78 289 369 Dividends 21 19 24 20 20 84 79 Other Interest and Dividend Income 106 135 151 98 99 490 517 Total Interest and Dividend Income 10,963 10,786 10,820 10,988 11,755 43,557 47,467 Interest Expense Deposits 636 715 827 947 1,036 3,125 5,172 Short-Term Borrowings 26 25 24 23 25 98 137 Other Borrowings 70 36 35 41 60 182 254 Total Interest Expense 732 776 886 1,011 1,121 3,405 5,563 Net Interest and Dividend Income 10,231 10,010 9,934 9,977 10,634 40,152 41,904 (Recovery) Provision for Loan Losses 75 — (1,200) — — (1,125) 4,000 Net Interest and Dividend Income After (Recovery) Provision for Loan Losses 10,156 10,010 11,134 9,977 10,634 41,277 37,904 Noninterest Income: Service Fees 569 602 614 546 560 2,331 2,206 Insurance Commissions 1,618 1,194 1,209 1,595 1,403 5,616 4,878 Other Commissions 90 93 173 165 105 521 479 Net Gain on Sales of Loans 977 49 31 86 388 1,143 1,391 Net Gain (Loss) on Securities 44 24 11 447 213 526 233 Net Gain on Purchased Tax Credits 17 18 17 18 16 70 62 Gain on Sale of Branches 5,203 — — — — 5,203 — Net Loss on Disposal of Fixed Assets — — (3) — (13) (3) (61) Income from Bank-Owned Life Insurance 142 138 136 137 140 553 557 Other Income (Loss) 29 80 31 180 (34) 320 (274) Total Noninterest Income 8,689 2,198 2,219 3,174 2,778 16,280 9,471 Noninterest Expense: Salaries and Employee Benefits 5,181 4,787 5,076 4,894 5,126 19,938 19,809 Occupancy 619 615 1,024 710 606 2,968 2,797 Equipment 252 205 311 266 234 1,034 935 Data Processing 488 541 607 518 476 2,154 1,843 FDIC Assessment 222 293 249 250 344 1,014 837 PA Shares Tax 173 224 225 265 350 887 1,313 Contracted Services 1,133 1,441 750 687 577 4,011 2,048 Legal and Professional Fees 206 180 419 189 185 994 752 Advertising 191 225 193 140 178 749 664 Other Real Estate Owned (Income) (30) (89) (26) (38) (39) (183) (69) Amortization of Intangible Assets 445 446 503 532 532 1,926 2,128 Intangible Assets and Goodwill Impairment — — 1,178 — — 1,178 18,693 Writedown of Fixed Assets 23 2 2,268 — 240 2,293 1,124 Other 1,069 903 945 982 916 3,899 3,893 Total Noninterest Expense 9,972 9,773 13,722 9,395 9,725 42,862 56,767 Income (Loss) Before Income Tax Expense (Benefit) 8,873 2,435 (369) 3,756 3,687 14,695 (9,392) Income Tax Expense (Benefit) 1,908 452 (146) 911 608 3,125 1,248 Net Income (Loss) 6,965 1,983 (223) 2,845 3,079 11,570 (10,640) (Dollars in thousands) (Unaudited)
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 43 Per Common Share Data (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. Three Months Ended Year Ended Per Common Share Data 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 12/31/21 12/31/20 Dividends Per Common Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.96 $ 0.96 Earnings (Loss) Per Common Share - Basic 1.32 0.37 (0.04) 0.52 0.57 2.15 (1.97) Earnings (Loss) Per Common Share - Diluted 1.31 0.37 (0.04) 0.52 0.57 2.15 (1.97) Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.53 0.36 0.59 0.46 0.58 1.95 1.61 Weighted Average Common Shares Outstanding - Basic 5,291,795 5,373,032 5,432,234 5,434,374 5,404,874 5,382,441 5,406,290 Weighted Average Common Shares Outstanding - Diluted 5,314,537 5,390,128 5,432,234 5,436,881 5,406,068 5,392,729 5,406,290 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Common Shares Outstanding 5,260,672 5,330,401 5,409,077 5,434,374 5,434,374 Book Value Per Common Share $ 25.31 $ 24.57 $ 24.50 $ 24.62 $ 24.76 Tangible Book Value per Common Share (Non-GAAP) (1) 22.45 21.67 21.56 21.38 21.42 Stockholders’ Equity to Assets 9.3 % 8.9 % 9.1 % 9.1 % 9.5 % Tangible Common Equity to Tangible Assets (Non-GAAP) (1) 8.4 7.9 8.1 8.0 8.3
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 44 Selected Financial Ratios /Asset Quality Ratios / Capital Ratios Three Months Ended Year Ended Selected Financial Ratios (2) 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 12/31/21 12/31/20 Return on Average Assets 1.87 % 0.54 % (0.06) % 0.81 % 0.87 % 0.79 % (0.77) % Adjusted Return on Average Assets (Non-GAAP) (1) 0.76 0.53 0.87 0.71 0.88 0.72 0.63 Return on Average Equity 20.95 5.93 (0.66) 8.54 9.13 8.66 (7.18) Adjusted Return on Average Equity (Non-GAAP) (1) 8.55 5.88 9.57 7.48 9.25 7.87 5.88 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 145.09 146.78 146.82 142.98 141.58 145.44 139.89 Average Equity to Average Assets 8.93 9.03 9.08 9.48 9.49 9.12 10.75 Net Interest Rate Spread 2.85 2.77 2.72 2.91 3.07 2.81 3.13 Net Interest Rate Spread (FTE) (Non-GAAP) (1) 2.86 2.78 2.74 2.92 3.08 2.82 3.15 Net Interest Margin 2.95 2.88 2.84 3.04 3.21 2.92 3.30 Net Interest Margin (FTE) (Non-GAAP) (1) 2.96 2.89 2.85 3.05 3.22 2.94 3.32 Net (Recoveries) Charge-offs to Average Loans 0.03 (0.01) (0.01) 0.02 0.39 0.01 0.11 Efficiency Ratio 52.71 80.05 112.91 71.44 72.51 75.95 110.50 Adjusted Efficiency Ratio (Non-GAAP) (1) 69.73 77.27 80.68 70.06 68.06 74.25 68.14 Asset Quality Ratios 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Allowance for Loan Losses to Total Loans 1.13 % 1.16 % 1.15 % 1.22 % 1.22 % Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1) 1.16 1.20 1.21 1.30 1.29 Allowance for Loan Losses to Nonperforming Loans (3) 159.40 106.18 74.92 89.29 88.15 Allowance for Loan Losses to Noncurrent Loans (4) 233.37 135.37 90.83 118.08 117.20 Delinquent and Nonaccrual Loans to Total Loans (4) (5) 0.78 0.97 1.37 1.18 1.50 Nonperforming Loans to Total Loans (3) 0.71 1.09 1.53 1.37 1.39 Noncurrent Loans to Total Loans (4) 0.49 0.85 1.26 1.03 1.04 Nonperforming Assets to Total Assets (6) 0.51 0.74 1.07 0.98 1.04 Capital Ratios (7) 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.95 % 11.53 % 11.67 % 11.85 % 11.79 % Tier 1 Capital (to Risk Weighted Assets) 11.95 11.53 11.67 11.85 11.79 Total Capital (to Risk Weighted Assets) 13.18 12.77 12.92 13.10 13.04 Tier 1 Leverage (to Adjusted Total Assets) 7.76 7.38 7.23 7.87 7.81 (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (2) Interim period ratios are calculated on an annualized basis. (3) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (4) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (5) Delinquent loans consist of accruing loans that are 30 days or more past due. (6) Nonperforming assets consist of nonperforming loans and other real estate owned. (7) Capital ratios are for Community Bank only. Certain items previously reported may have been reclassified to conform with the current reporting period’s format.
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 45 Average Balances and Yields (1) Annualized based on three months ended results. (2) Net of allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale. (3) Includes Deposits Held for Sale. (4) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (7) Net interest margin represents net interest income divided by average total interest-earning assets. Three Months Ended December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Average Balance Interest and Dividends Yield / Cost (1) Average Balance Interest and Dividends Yield / Cost (1) Average Balance Interest and Dividends Yield / Cost (1) Average Balance Interest and Dividends Yield / Cost (1) Average Balance Interest and Dividends Yield / Cost (1) (Dollars in thousands) (Unaudited) Assets: Interest-Earning Assets: Loans, Net (2) $ 1,004,827 $ 9,927 3.92 % $ 1,004,474 $ 9,740 3.85 % $ 1,016,868 $ 9,959 3.93 % $ 1,031,853 $ 10,168 4.00 % $ 1,032,942 $ 10,860 4.18 % Debt Securities Taxable 205,328 866 1.69 197,763 843 1.71 124,685 635 2.04 122,883 646 2.10 133,026 725 2.18 Exempt From Federal Tax 10,477 84 3.21 11,647 90 3.09 12,276 94 3.06 12,943 96 2.97 13,006 96 2.95 Equity Securities 2,693 21 3.12 2,655 19 2.86 2,649 24 3.62 2,632 20 3.04 2,612 20 3.06 Other Interest-Earning Assets 153,577 106 0.27 164,447 135 0.33 246,392 151 0.25 161,871 98 0.25 137,000 99 0.29 Total Interest-Earning Assets 1,376,902 11,004 3.17 1,380,986 10,827 3.11 1,402,870 10,863 3.11 1,332,182 11,028 3.36 1,318,586 11,800 3.56 Noninterest-Earning Assets 100,607 88,291 82,794 92,550 94,262 Total Assets $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 $ 1,412,848 Liabilities and Stockholders' Equity Interest-Bearing Liabilities: Interest-Bearing Demand Deposits (3) $ 278,546 51 0.07 % $ 275,411 48 0.07 % $ 275,752 55 0.08 % $ 259,065 77 0.12 % $ 252,521 83 0.13 % Savings (3) 252,387 20 0.03 251,801 21 0.03 247,238 25 0.04 239,850 32 0.05 232,647 32 0.05 Money Market (3) 209,572 57 0.11 198,167 55 0.11 199,652 71 0.14 197,395 98 0.20 198,983 131 0.26 Time Deposits (3) 154,342 508 1.31 168,654 591 1.39 177,506 676 1.53 187,114 740 1.60 193,194 790 1.63 Total Interest-Bearing Deposits (3) 894,847 636 0.28 894,033 715 0.32 900,148 827 0.37 883,424 947 0.43 877,345 1,036 0.47 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 44,709 26 0.23 40,818 25 0.24 49,325 24 0.20 41,094 23 0.23 43,468 25 0.23 Other Borrowings 9,474 70 2.93 6,000 36 2.38 6,000 35 2.34 7,200 41 2.31 10,543 60 2.26 Total Interest-Bearing Liabilities 949,030 732 0.31 940,851 776 0.33 955,473 886 0.37 931,718 1,011 0.44 931,356 1,121 0.48 Noninterest-Bearing Demand Deposits 388,787 387,746 387,317 349,108 338,223 Other Liabilities 7,800 8,019 7,999 8,869 9,176 Total Liabilities 1,345,617 1,336,616 1,350,789 1,289,695 1,278,755 Stockholders' Equity 131,892 132,661 134,875 135,037 134,093 Total Liabilities and Stockholders' Equity $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 $ 1,412,848 Net Interest Income (FTE) (Non-GAAP) (4) 10,272 10,051 9,977 10,017 10,679 Net Interest-Earning Assets (5) 427,872 440,135 447,397 400,464 387,230 Net Interest Rate Spread (FTE)(Non-GAAP) (4) (6) 2.86 % 2.78 % 2.74 % 2.92 % 3.08 % Net Interest Margin (FTE) (Non-GAAP) (4)(7) 2.96 2.89 2.85 3.05 3.22 PPP Loans 29,067 391 5.34 40,313 484 4.76 57,661 636 4.42 56,945 676 4.81 64,914 768 4.71
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 46 Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and Adjusted ROAE Three Months Ended Full Year 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 12/31/21 12/31/20 12/31/19 12/31/18 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (Loss) (GAAP) $ 6,965 $ 1,983 $ (223) $ 2,845 $ 3,079 $ 11,570 $ (10,640) $ 14,327 $ 7,052 Adjustments (Gain) Loss on Securities (44) (24) (11) (447) (213) (526) (233) (140) 63 (Gain) on Sale of Branches (5,203) — — — — (5,203) Loss (Gain) on Disposal of Fixed Assets — — 3 — 13 3 61 (2) 137 Tax effect 1,102 5 2 94 42 1,202 36 30 (42) Non-Cash Charges: Intangible Asset and Goodwill Impairment — — 1,178 — — 1,178 18,693 — — Writedown on Fixed Assets 23 2 2,268 — 240 2,293 1,124 — — Tax Effect — — — — (42) — (338) — — Adjusted Net Income (Non-GAAP) $ 2,843 $ 1,966 $ 3,217 $ 2,492 $ 3,119 $ 10,517 $ 8,703 $ 14,215 $ 7,210 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,314,537 5,390,128 5,432,234 5,436,881 5,406,068 5,392,729 5,406,290 5,448,761 5,031,130 Earnings (Loss) per Common Share - Diluted (GAAP) $ 1.31 $ 0.37 $ (0.04) $ 0.52 $ 0.57 $ 2.15 $ (1.97) $ 2.63 $ 1.40 Adjusted Earnings per Common Share - Diluted (Non- GAAP) $ 0.53 $ 0.36 $ 0.59 $ 0.46 $ 0.58 $ 1.95 $ 1.61 $ 2.61 $ 1.43 Net Income (Loss) (GAAP) (Numerator) $ 6,965 $ 1,983 $ (223) $ 2,845 $ 3,079 $ 11,570 $ (10,640) $ 14,327 $ 7,052 Annualization Factor 3.97 3.97 4.01 4.06 3.98 1.00 1.00 1.00 1.00 Average Assets (Denominator) 1,477,509 1,469,277 1,485,664 1,424,732 1,412,848 1,464,455 1,378,074 1,311,425 1,152,558 Return on Average Assets (GAAP) 1.87 % 0.54 % (0.06) % 0.81 % 0.87 % 0.79 % (0.77) % 1.09 % 0.61 % Adjusted Net Income (Non-GAAP) (Numerator) $ 2,843 $ 1,966 $ 3,217 $ 2,492 $ 3,119 $ 10,517 $ 8,703 $ 14,215 $ 7,210 Annualization Factor 3.97 3.97 4.01 4.06 3.98 1.00 1.00 1.00 1.00 Average Assets (Denominator) 1,477,509 1,469,277 1,485,664 1,424,732 1,412,848 1,464,455 1,378,074 1,311,425 1,152,558 Adjusted Return on Average Assets (Non-GAAP) 0.76 % 0.53 % 0.87 % 0.71 % 0.88 % 0.72 % 0.63 % 1.08 % 0.63 % Three Months Ended 12/31/21 (Dollars in thousands) (Unaudited) Net Income (GAAP) (Numerator) $ 6,965 Annualization Factor 3.97 Average Equity (Denominator) (GAAP) $ 131,892 Return on Average Equity (GAAP) 20.95 % Adjusted Net Income (GAAP) (Numerator) $ 2,843 Annualization Factor 3.97 Average Equity (Denominator) (GAAP) $ 131,892 Adjusted Return on Average Equity (Non-GAAP) 8.55 % Share Price $ 24.20 Divided by: Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 2.15 Price to EPS (GAAP) 11.3x Share Price $ 24.20 Divided by: Adjusted Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 1.95 Price to Adjusted EPS (Non-GAAP) 12.4x
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 47 Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets 12/31/21 12/31/20 12/31/19 12/31/18 (Dollars in thousands, except share and per share data) Stockholders' Equity (GAAP) $ 133,124 $ 134,530 $ 151,097 $ 137,625 Goodwill and Intangible Assets, Net (15,027) (18,131) (38,952) (41,080) Tangible Common Equity or Tangible Book Value (Non-GAAP) $ 118,097 $ 116,399 $ 112,145 $ 96,545 Common Shares Outstanding 5,260,672 5,434,374 5,463,828 5,432,289 Book Value per Common Share (GAAP) $ 25.31 $ 24.76 $ 27.65 $ 25.33 Tangible Book Value per Common Share (Non-GAAP) $ 22.45 $ 21.42 $ 20.52 $ 17.77 Total Assets (GAAP) $ 1,425,479 $ 1,416,720 $ 1,321,537 $ 1,281,701 Goodwill and Intangible Assets, Net (15,027) (18,131) (38,952) (41,080) Tangible Assets (Non-GAAP) $ 1,410,452 $ 1,398,589 $ 1,282,585 $ 1,240,621 Stockholders' Equity to Assets (GAAP) 9.34 % 9.50 % 11.43 % 10.74 % Tangible Common Equity / Tangible Assets (Non-GAAP) 8.37 % 8.32 % 8.74 % 7.78 % Share Price 24.20 Price to Book Value (GAAP) 0.96x Price to Tangible Book Value (Non-GAAP) 1.08x
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 48 Non-GAAP Financial Measures: Return on Average Tangible Common Equity Three Months Ended Full Year 12/31/21 12/31/20 12/31/21 12/31/20 12/31/19 12/31/18 (Dollars in thousands) Net Income (Loss) (GAAP) $ 6,965 $ 3,079 $ 11,570 $ (10,640) $ 14,327 $ 7,052 Amortization of Intangible Assets, Net 445 532 1,926 2,128 1,532 1,167 Goodwill Impairment — — 1,178 18,693 — — Adjusted Net Income (Non-GAAP) (Numerator) $ 7,410 $ 3,611 $ 14,674 $ 10,181 $ 15,859 $ 8,219 Annualization Factor 3.97 3.98 1.00 1.00 1.00 1.00 Average Stockholders' Equity (GAAP) $ 131,892 $ 134,093 $ 133,605 $ 148,132 $ 144,903 $ 119,300 Average Goodwill and Intangible Assets, Net (15,311) (18,441) (16,591) (33,207) (39,782) (30,012) Average Tangible Common Equity (Non-GAAP) (Denominator) $ 116,581 $ 115,652 $ 117,014 $ 114,925 $ 105,121 $ 89,288 Return on Average Equity (GAAP) 20.95 % 9.13 % 8.66 % (7.18) % 9.89 % 5.91 % Return on Average Tangible Common Equity (Non-GAAP) 25.22 % 12.42 % 12.54 % 8.86 % 15.09 % 9.21 %
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 49 Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE) Three Months Ended Full Year 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 12/31/21 12/31/20 12/31/19 12/31/18 (Dollars in thousands) Interest Income per Consolidated Statement of Income (GAAP) $ 10,963 $ 10,786 $ 10,820 $ 10,988 $ 11,755 $ 43,557 $ 47,467 $ 51,031 $ 43,626 Adjustment to FTE Basis 41 41 43 40 45 172 211 251 355 Interest Income (FTE) (Non-GAAP) $ 11,004 $ 10,827 $ 10,863 $ 11,028 $ 11,800 $ 43,729 $ 47,678 $ 51,282 $ 43,981 Interest Expense per Consolidated Statement of Income (GAAP) 732 776 886 1,011 1,121 3,405 5,563 7,857 5,949 Net Interest Income (FTE) (Non-GAAP) $ 10,272 $ 10,051 $ 9,977 $ 10,017 $ 10,679 $ 40,324 $ 42,115 $ 43,425 $ 38,032 Net Interest Income (GAAP) $ 10,231 $ 10,010 $ 9,934 $ 9,977 $ 10,634 $ 40,152 $ 41,904 $ 43,174 $ 37,677 Divided by: Average Interest Earning Assets $ 1,376,902 $ 1,380,986 $ 1,402,870 $ 1,332,182 $ 1,318,586 $ 1,373,380 $ 1,268,833 $ 1,192,371 $ 10,592,790 Multiplied by: Annualization Factor 3.9674 3.9674 4.0110 4.0556 3.9783 1.0000 1.0000 1.0000 1.0000 Net Interest Margin (FTE) (Non-GAAP) 2.96 % 2.89 % 2.85 % 3.05 % 3.22 % 2.94 % 3.32 % 3.64 % 3.59 % Net Interest Margin (GAAP) 2.95 % 2.88 % 2.84 % 3.04 % 3.21 % 2.92 % 3.30 % 3.62 % 3.55 %
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 50 Non-GAAP Financial Measures: Adjusted Efficiency Ratio Three Months Ended Full Year 12/31/21 9/30/21 6/30/21 3/31/21 12/31/20 12/31/21 12/31/20 12/31/19 12/31/18 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest expense (GAAP) $ 9,972 $ 9,773 $ 13,722 $ 9,395 $ 9,725 $ 42,862 $ 56,767 $ 34,960 $ 34,848 Net Interest and Dividend Income (GAAP) 10,231 10,010 9,934 9,977 10,634 40,152 41,904 43,174 37,677 Noninterest Income (GAAP) 8,689 2,198 2,219 3,174 2,778 16,280 9,471 8,567 7,686 Operating Revenue (GAAP) 18,920 12,208 12,153 13,151 13,412 56,432 51,375 51,741 45,363 Efficiency Ratio (GAAP) 52.71 % 80.05 % 112.91 % 71.44 % 72.51 % 75.95 % 110.50 % 67.57 % 76.82 % Adjusted Efficiency Ratio (Non-GAAP) Noninterest expense (GAAP) $ 9,972 $ 9,773 $ 13,722 $ 9,395 $ 9,725 $ 42,862 $ 56,767 $ 34,960 $ 34,848 Less: Other Real Estate Owned (Income) (30) (89) (26) (38) (39) (183) (69) (103) 48 Amortization of Intangible Assets, Net 445 446 503 532 532 1,926 2,128 2,127 1,556 Intangible Assets and Goodwill Impairment — — 1,178 — — 1,178 18,693 — — Writedown on Fixed Assets 23 2 2,268 — 240 2,293 1,124 — — Merger Expense — — — — — — — — 854 Adjusted Noninterest Expense (Non-GAAP) $ 9,534 $ 9,414 $ 9,799 $ 8,901 $ 8,992 $ 37,648 $ 34,891 $ 32,936 $ 32,390 Net Interest and Dividend Income (GAAP) 10,231 10,010 9,934 9,977 10,634 40,152 41,904 43,174 37,677 Noninterest Income (GAAP) 8,689 2,198 2,219 3,174 2,778 16,280 9,471 8,567 7,686 Less: Net Gain on Securities 44 24 11 447 213 526 233 140 (63) Gain on Sale of Branches 5,203 — — — — 5,203 — — — Net (Loss) Gain on Disposal of Fixed Assets — — (3) — (13) (3) (61) 2 (137) Adjusted Noninterest Income (Non-GAAP) 3,442 2,174 2,211 2,727 2,578 10,554 9,299 8,425 7,886 Adjusted Operating Revenue (Non-GAAP) 13,673 12,184 12,145 12,704 13,212 50,706 51,203 51,599 45,563 Adjusted Efficiency Ratio (Non-GAAP) 69.73 % 77.27 % 80.68 % 70.06 % 68.06 % 74.25 % 68.14 % 63.83 % 71.09 %
CB Financial Services, Inc. (Nasdaq: CBFV) January 2022 Page 51 Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets Three Months Ended Full Year 12/31/21 12/31/20 12/31/21 12/31/20 12/31/19 12/31/18 (Dollars in thousands) Net Income (Loss) Before Income Tax Expense (Benefit) (GAAP) $ 8,873 $ 3,687 $ 14,695 $ (9,392) $ 16,056 $ 8,590 Provision for Loan Losses 75 — (1,125) 4,000 725 2,525 Goodwill and Intangible Asset Impairment — — 1,178 18,693 — — Writedown on Fixed Assets 23 240 2,293 1,124 — — Pre-Tax, Pre-Provision ("PTPP") Net Income (Non-GAAP) (Numerator) $ 8,971 $ 3,927 $ 17,041 $ 14,425 $ 16,781 $ 11,115 Annualization Factor 3.9674 3.9783 1.0000 1.0000 1.0000 1.0000 Average Assets (Denominator) $ 1,477,509 $ 1,412,848 $ 1,464,455 $ 1,378,074 $ 1,311,425 $ 1,152,558 PTPP Return on Average Assets (Non-GAAP) 2.41 % 1.11 % 1.16 % 1.05 % 1.28 % 0.96 %
