Financial Services, Inc. Investor Presentation | April 2023 Carmichaels Branch built circa 1912
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 2 Forward-Looking Statements and Non-GAAP Financial Measures 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.
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 3 “We partner with individuals, businesses and communities to realize their dreams, protect their financial futures and improve their lives “ Mission Statement
Well-Positioned for Uncertain Times
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 5 Secure Deposit Base • In total, 62.9% of deposits are FDIC insured as of March 31, 2023 • Uninsured deposits consist of business & retail deposits of 17.5% and 6.9% of total deposits, respectively • At March 31, 2023, deposits consisted of 55.8% retail; 30.0% business; and 14.2% municipal • CBFV is focused on providing opportunities for uninsured depositors to move funds to alternate products, providing benefit to both customers and the bank FDIC Insured, 62.9% Collateralized, 12.7% Uninsured, 24.4%
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 6 Strong Liquidity Position • Cash & Cash Equivalents totaled $103.5 million, or 7.2% of total assets • All securities classified as Available-for-Sale and marked to market • No outstanding borrowings from available borrowing capacity at the bank subsidiary • $618.5 million in available borrowing capacity (FED, FHLB, Other) • No wholesale or broker deposits$45,750 24.2% $13,691 7.2% $40,458 21.4% $79,175 41.9% $7,485 4.0% $2,466 1.3% Government Agency Municipal MBS's CMO's Corporate Debt Marketable Equity Cash 11.4% Investments 20.7% Fed Borrow 13.2% FHLB Borrow 49.2% Other Borrow 5.5% Total Liquidity of $911.0 million
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 7 Market Presence with Brand Recognition Seasoned Executive Leadership Deploying Technology to Enhance Client Experience Investment Summary Serving Stable Southwestern PA & Ohio River Valley markets Proven experience through all economic cycles Continuing to invest with a tech- forward and people-centric approach Investing for Growth Adding new talent, tech upgrades and investing in process improvement Rewarding Shareholders Stable quarterly dividend and active share repurchase program
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 8 Corporate Overview Headquartered in Southwestern, Pennsylvania Community Bank (the "Bank"), the wholly-owned subsidiary of CB Financial Services, Inc. operates ten offices providing a wide range of banking services in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties in southwestern Pennsylvania, and three offices in Marshall and Ohio Counties in West Virginia. In addition, the Bank provides personal and commercial insurance products through its Exchange Underwriters subsidiary which is based in the Bank's headquarters in Washington, PA. Financial Overview(1) Assets Loans Deposits $1.43 billion $1.07 billion $1.28 billion Founded in 1901 (1) Data as of March 31, 2023
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 9 CBFV Share Price $21.55 Shares Outstanding 5.1M Public Float 4.6M Market Cap 110.3M Total Stockholders' Equity $117.2M Book Value per Common Share $22.90 Tangible Book Value per Common Share (1) $20.40 Price to Book Value 0.95x Price to Tangible Book Value (1) 1.06x P/E LTM (LTM EPS of $2.39) 9.02x P/E LTM (LTM Adjusted EPS of $2.33) (1) 9.25x ◦ All daily trading information/multiples as of April 26, 2023 ◦ All other financial information as of March 31, 2023 (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. Share / Trading Information
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 10 Commercial Banking Retail Banking Mortgage Banking Insurance Brokerage ▪ Well-positioned to serve the needs of small and medium-sized businesses across our footprint ▪ Growing presence within the Pittsburgh MSA ▪ Strong asset quality ▪ Branch optimization completed in 2021 ▪ Currently operating in Southwestern PA and Ohio River Valley ▪ Ongoing investment in technology and physical infrastructure ▪ Active mortgage origination platform with dedicated mortgage originators ▪ Low volatility housing market ▪ Expanding mortgage banking platform into legacy markets ▪ Provides relatively uncorrelated source of revenues ▪ Complementary to commercial and retail banking business Diversified Business
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 11 2023 Macro Outlook Item Comment Deposits Market pricing began increasing during 2022 and we expect that will continue; Corporate wide initiatives to increase deposits in place Loans Focal area with new talent in place, continuing to opportunistically push for growth in the face of headwinds stemming from moderating economic conditions Net Interest Margin Compression is likely as deposit costs increase, continued focus on attracting Core non/low interest bearing deposits to mitigate compression Non-interest expense Upward bias as we attract top talent, continued investments in technology to generate efficiencies Expectations for the balance of 2023 are marked by 'Uncertainty' as future interest rate changes by the Federal Reserve, a potential recession, and industry-specific developments exert a resulting mixed impact on CB
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 12 Pittsburgh Metropolitan Area Attractive Operating Market1 1 source: https://pittsburghregion.org/doing-business-in-pittsburgh/
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 13 Revenue Generating Initiatives 2023 Goals p Continue investment in technology / applications to support the customer experience p Fine-tune build out of Commercial Banking team; begin implementation of new Loan Origination System to streamline processes p Rollout new consumer loan products including FHA mortgage products, securities based lending program and an advanced suite of treasury management products With a differentiated model and approach to risk management, our Operational Goals for 2023 are not impacted by recent bank failures
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 14 Senior Executive Vice President & Chief Credit Officer, Director since 2018. Over 35 years of experience. Ralph Burchianti Senior Executive Vice President & Chief Operations Officer since May 2019, joined CBFV in October 2014. Jennifer George President & CEO since August 2020. Previously Chief Credit Officer at First Bank, a privately held $6 Billion bank. Over 30 years of experience. John Montgomery Executive Vice President, Director of Client Experience & Innovation since April 2022. Ben Brown Executive Vice President, Chief Commercial Banking Officer since February 2022. Bruce Sharp Executive Vice President & Chief Financial Officer since May 2019. Jamie Prah Alan Bicker Executive Vice President, Chief Consumer Banking Officer since March 2022. Executive Leadership Team Steve Cobain Executive Vice President, Director of Credit Administration since April 2023.
Strong Q1 Performance
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 16 Q1 2023 – Highlights of the Quarter Improvement in Multiple Key Metrics(1) • Net Interest Margin (NIM) of 3.51%, up 6 basis points from Q4 2022; up 43 basis points from Q1 2022 • Q1 2023 adjusted Efficiency Ratio (non-GAAP) of 60.2%, compared with 65.9% in Q1 2022 • Pre-tax, pre-provision (PTPP) net income (excluding PPP and one-time items) of $5.3M in Q1 2023 was up 52.6% compared with $3.5M during Q1 2022 Loan Growth Coupled with Increased Deposit Balances • Loans grew $22.0 million (8.4% annualized) from December 31, 2022 • Tier 1 leverage remains strong at 9.24%, compared to 8.66% at December 31, 2022 • Deposits grew $13.0 million (4.1% annualized) from December 31, 2022 (1) Numbers and comparisons may be on an adjusted basis. See appendix for discussion and reconciliation of non-GAAP financial measures. Numbers and percent changes may not add/equate precisely due to rounding. Financial Performance Balance Sheet Strength Strong quarterly performance, driven by operating leverage and strategic initiatives driving financial results
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 17 Financial Update – Q1 2023 2021 FY 2022 FY Q1 2022 Q1 2023 ($000s except per share) 12/31/21 12/31/22 3/31/22 3/31/23 Balance Sheet Total Assets $ 1,425,479 $ 1,408,938 $ 1,438,670 $ 1,430,708 Total Loans 1,020,796 1,049,873 1,020,642 1,071,865 Total Deposits 1,226,613 1,268,503 1,250,313 1,281,520 Tangible Common Equity(2) 118,097 96,910 107,574 104,395 Loans/ Deposits 83.2 % 82.8 % 81.6 % 83.6 % Capital Ratios (%) Tier 1 Leverage 7.76 % 8.66 % 8.19 % 9.24 % Tangible. Common Equity / Tangible Assets(2) 8.37 6.94 7.55 7.36 Tier 1 Ratio(3) 11.95 12.33 11.99 12.60 Total Capital Ratio(3) 13.18 13.58 13.20 13.69 Asset Quality (%)(1) NPAs/ Assets 0.51 % 0.41 % 0.51 % 0.52 % NCOs/ Avg Loans 0.01 (0.01) (0.01) (0.29) Reserves/ Nonaccrual Loans 233 321 218 190 Profitability Net Income $ 11,570 $ 11,247 $ 3,047 $ 4,156 ROAA 0.79 % 0.80 % 0.87 % 1.21 % PTPP ROAA(2) 1.32 1.27 1.10 1.57 ROAE 8.66 9.56 9.50 14.69 ROATCE(2) 12.54 12.60 12.30 18.35 Net Interest Margin (FTE)(2) 2.94 3.25 3.10 3.52 Adjusted Efficiency Ratio(2) 74.25 63.36 65.88 60.23 Diluted EPS $ 2.15 $ 2.18 $ 0.58 $ 0.79 TBV Per Share(2) 22.45 19.00 20.86 20.40 • Diluted EPS (GAAP) for Q1 2023 was $0.79, compared to $0.58 in the prior year period • NIM (FTE) (Non-GAAP) increased 42 bps year-over-year to 3.52% compared with Q1 2022 of 3.10% on improving asset yields slightly offset by higher interest-bearing deposit costs • Total loans were $1.07 billion, an increase of $22.0 million compared to prior year end • Total deposits were $1.28 billion, an increase of $13.0 million compared to 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. • Total assets were $1.43 billion, compared to $1.41 billion at the prior year end
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 18 Period ended balances were $1.07 billion at March 31, 2023 compared to $1.02 billion at March 31, 2022, an increase of 5.0%. in m ill io ns Quarter End Loan Balances $1,021 $1,028 $1,043 $1,050 $1,072 Total Loans Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $700 $750 $800 $850 $900 $950 $1,000 $1,050 $1,100 Quarterly Loan Growth in m ill io ns Quarter End Loan Balances $1,012 $1,024 $1,042 $1,050 $1,072 Total Loans excluding PPP(1) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $700 $750 $800 $850 $900 $950 $1,000 $1,050 $1,100
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 19 After completion of the branch optimization in June 2021, there has been continuous growth in core earnings from $3.5 million in the three months ended March 31, 2022 to $5.3 million in the three months ended March 31, 2023, an increase of 52.8%. in th ou sa nd s $3,460 $3,927 $4,417 $5,123 $5,281 Core Earnings Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 (1) Core earnings based on adjustments made in Non-GAAP Financial Measures: Core Earnings table in Appendix. Core Earnings GAAP equivalent is pre-tax income(loss) for the following quarters starting with Q1 2022 as noted, $3.5 million, $3.9 million, $4.4 million, $5.1 million, $5.3 million Core Earnings(1) Growth
Driving Margins by Controlling Costs
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 21 ▪ Total Interest and Dividend Income, plus Insurance Commissions, continue to grow ▪ Completion of optimization initiative in 2021 is resulting in improved efficiency ▪ Investing in retail deposit and commercial loan growth through our recent strategic hires Improving Returns on Our Human Capital Revenue per Full-time Employee $245,865 $272,570 $334,631 FY 2021 FY 2022 FY 2023 (annualized) $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Revenue Metrics Benefiting from Optimization Efforts
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 22 ◦ Reduced overall branch locations from 16 to 13 during Q4 2021 - 2022 ◦ Deposits per branch continuing to trend well above pre-optimization levels ◦ Focus on driving revenue initiatives while continuing to scrub for additional optimization opportunities Branch Optimization Efforts Yielding Results $ in thousands $89,308 $86,799 $91,131 $97,577 $98,579 Total Deposits Deposits Per Branch 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 $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 $100,000 Increasing Efficiency In Our Branch Networks $ in th ou sa nd s
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 23 * Peers include public and private Pennsylvania banks with total assets of $1 billion to $5 billion as of 12/31/22. Source: KBW Equity Research; S&P Global Market Intelligence; Financial data as of 12/31/22. CB Has Maintained a Lower Average Cost of Deposits Versus Peers* Through the Most Recent Cycle CB Peers Avg Fed Funds Rate 2018 2019 2020 2021 2022 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Favorable Cost of Deposits
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 24 * Peers include public and private Pennsylvania banks with total assets of $1 billion to $5 billion as of 12/31/22 as Q1 2023 data is unavailable Source: S&P Global Market Intelligence; Financial data as of 12/31/22. CB Has Maintained a Higher Ratio of Non-Interest Bearing Deposits Compared to Peers Average* Through the Most Recent Cycle Non-Interest Bearing Deposit Market Advantage CB Peers 2018 2019 2020 2021 2022 10% 15% 20% 25% 30% 35%
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 25 Core Income is increasing at a faster rate than core expenses, which remained relatively flat, resulting in positive operating leverage in th ou sa nd s Core Income Core Expense Income Trendline Expense Trendline Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $— $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 (1) Core income/expense based on adjustments made in Non-GAAP Financial Measures: Core Earnings table in Appendix Operating Leverage Benefiting From Optimization 1 1
Credit Insights
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 27 Home Prices and Unemployment in the Pittsburgh MSA Compared Favorably with Pennsylvania and National Average Attractive Operating Markets ~ Less Recessionary Impact During Last Recession
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 28 Credit Breakdown by Industry Industry Breakdown Total Outstanding Balance ($000) % of Total Loans Retail Space $ 123,951 $ 1,071,865,000 11.6 % Multifamily 75,919 7.1 Office Space 62,456 5.8 Senior Housing 18,929 1.8 Hotels 16,874 1.6 Oil and Gas 10,139 0.9 Restaurants 3,148 0.3 Total Industries $ 311,416 29.1 % ▪ No loans are in deferral as of 3/31/2023 ▪ Exposure includes categories of CRE, Construction CRE, and C&I loans ▪ Credit book characterized by rigorous underwriting Source: Company information as of 3/31/2023 Retail 39.8% Multifamily 24.4% Office Space 20.0% Senior Housing 6.1% Hotels 5.4% Oil and Gas 3.3% Restaurants 1.0% Diversified Commercial Book Reduces Recession Sensitivity
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 29 Borrower Loan to Value Bands Borrower Loan to Value Bands Total Outstanding Balance ($000) % of CRE Loans % of Total Loans < 50% $ 131,721 29.1 % 12.3 % 50% - 59% 72,387 16.0 71 % 6.8 60% - 69% 118,847 26.2 11.1 70% - 79% 99,989 22.1 9.3 80% - 89% 14,937 3.3 1.4 90% - 99% 3,649 0.8 $ 1,071,865,000.00 .3 > 100% 11,239 2.5 1.0 Total $ 452,770 100 % 42.2 % Key Takeaways: • Commercial Real Estate represents 42.2% of our total loan portfolio • Within Commercial Real Estate, 29.1% of loans carried an LTV of less than 50% at the time of underwriting • 71.3% of loans carried an LTV of 69% or lower at the time of underwriting • Average CRE loan of approximately $964,000 • Majority of CRE loans concentrated in Pittsburgh metropolitan area Source: Company information as of 3/31/2023 < 50% 29.1% 50% - 59% 16.0% 60% - 69% 26.2% 70% - 79% 22.1% 80% - 89% 3.3% 90% - 99% 0.8% > 100% 2.5% High - Quality Commercial Real Estate Book
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 30 Borrower Credit Score Bands Borrower Credit Score Bands Total Outstanding Balance ($000) % of Indirect Loans % of Total Loans > 800 $ 61,329 45.3 % 5.7 % 740-799 49,193 36.3 82 % 4.6 700-739 16,385 12.1 1.5 661-699 7,147 5.3 0.7 640-660 519 0.4 — < 640 826 0.6 $ 1,071,865,000.00 .1 Total $ 135,399 100.0 % 12.6 % Key Takeaways: • Indirect Auto represents 12.6% of our total loan portfolio • Within Indirect Auto, 45.3% of loans are to borrowers with FICO scores of 800 or better at the time of underwriting • 81.6% of loans are to borrowers with FICO scores of 740 or better at the time of underwriting • Short term nature of portfolio provides an important source of liquidity Source: Company information as of 3/31/2023 < 640 0.6% 640-660 0.4% 661-699 5.3% 700-739 12.1%740-799 36.3% > 800 45.3% Indirect Auto Lending Supported by Prime Borrower Relationships
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 31 Borrower Loan to Value Bands Borrower Loan to Value Bands Total Outstanding Balance ($000) % of Residential Loans % of Total Loans < 50% $ 95,607 28.7 % $ 1,071,865,000 8.9 % 50% - 59% 38,726 11.6 $ 1 3.6 60% - 69% 57,712 17.3 5.4 70% - 79% 90,014 27.0 8.4 80% - 89% 30,741 9.2 2.9 90% - 99% 19,353 5.8 1.8 > 100% 688 0.2 0.1 Total Borrower Loan to Value Bands $ 332,840 100.0 % 31.1 % Key Takeaways: • Residential loans represent 31.1% of our total loan portfolio • Within our residential book, 28.7% of loans carried an LTV of less than 50% at the time of underwriting • 57.6% of loans carried an LTV of 69% or lower at the time of underwriting Source: Company information as of 3/31/2023 < 50% 28.7% 50% - 59% 11.6% 60% - 69% 17.4% 70% - 79% 27.1% 80% - 89% 9.2% 90% - 99% 5.8% > 100% 0.2% Residential Real Estate Segment Characterized by Conservative Loan to Values (LTVs)
Returning Capital to Shareholders
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 33 CB Financial has paid a regular quarterly dividend of $0.24 per share since Q1 2019, with an increase of 4.2% to $0.25 as of Q4 2022 Completed $7.5 million repurchase program in February 2022 308,996 Total Shares Average Cost $24.27 per share Authorized new $10 million repurchase program in April 2022 67,864 Shares purchased as of March 31, 2023 Average Cost $22.45 per share Strong Capital Position Allows us to Maintain Shareholder-friendly Initiatives Despite Economic Uncertainty Shareholder Friendly Programs
Key Financial Metrics
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 35 ◦ Continuing to focus on credit underwriting standards ◦ Providing personalized customer engagement that leads to repeat and referral business ◦ Focusing on growth in core deposits ◦ Branch optimization ($ in m ill io ns ) Total Assets $1,416.7 $1,425.5 $1,408.9 $1,430.7 12/31/20 12/31/21 12/31/22 03/31/23 $600 $800 $1,000 $1,200 $1,400 $1,600 Operating Initiatives Have Led to a High-Quality Balance Sheet
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 36 Expertise in Commercial Real Estate Commercial & Industrial 7.4% Real Estate- Construction 3.7% Real Estate- Commercial 42.2% Real Estate- Residential 31.1% Consumer 13.6% Other 2.0% (as of March 31, 2023) ($ in m ill io ns ) Total Loans $1,045.0 $1,023.0 $1,049.9 $1,071.9 12/31/20 12/31/21 12/31/22 03/31/23 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 $1,100.0 $1,200.0 Loan Growth Trend and CRE Loan Composition
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 37 Owner Occupied CRE Loans by Industry – $115.6M Non-Owner Occupied CRE Loans by Industry – $337.1M Source: Company information as of 3/31/2023 Retail Space 32.5% Other Non-Farm/Non- Residential 19.7% Warehouse Space 14.2% Office Space 11.4% Medical Facilities 6.6% Churches 4.1% Vacant Land 3.4% Manufacturing 3.4% Senior Housing 2.9% Restaurants 1.8% Retail Space 25.8% Multifamily 22.5% Warehouse Space 14.5% Office Space 12.8% Manufacturing 9.0% Hotels 5.0% Medical Facilities 3.4% Senior Housing 2.6% Other Non-Farm/ Non-Residential 2.6% Oil and Gas 1.5%Other 0.3% CRE Portfolio by Industry
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 38 C&I Loans by Industry – $79.4M Source: Company information as of 3/31/2023 Information 11.1% Manufacturing 10.4%Real Estate Rental and Leasing 9.6% Oil and Gas 8.5% Educational Services 7.8% Utilities 7.7% Arts, Entertainment and Recreation 7.6% Professional, Scientific, and Technical Services 6.3% Health Care and Social Assistance 5.2% Senior Housing 5.1% Retail Trade 4.1% Wholesale Trade 3.9% Finance and Insurance 3.8% Construction 3.5% Administrative and Support and Waste Management and Remediation Services 2.9% Other Services 1.7% Other C&I Industries 0.8% C&I Portfolio by Industry
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 39 ($ in m ill io ns ) Total Deposits $340.6 $385.8 $390.4 $350.9 $259.9 $272.5 $311.8 $359.1 $199.0 $192.1 $209.1 $206.2 $235.1 $239.5 $248.0 $234.9 $190.0 $136.7 $109.1 $130.4 $1,224.6 $1,226.6 $1,268.5 $1,281.5 Total Deposits Time Deposits Savings Accounts Money Market Accounts Interest Bearing Demand Deposits Non-Interest Bearing Demand Deposits 12/31/20 12/31/21 12/31/22 03/31/23 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Source: Company information as of 3/31/2023 Total Deposits and Deposit Composition
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 40 Net (Recoveries) and Charge-offs /Average LoansNoncurrent Loans/Total Loans Allowance for Credit Losses to Total Loans Nonperforming Assets/Total Assets 0.52% 0.38% 0.39% 0.38% 0.51% 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% (0.01)% 1.01% (0.01)% 0.01% (0.29)% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (0.50)% 0.00% 0.50% 1.00% 1.14% 1.25% 1.23% 1.22% 0.96% 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 0.90% 1.00% 1.10% 1.20% 1.30% 0.51% 0.42% 0.41% 0.41% 0.52% 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 0.40% 0.45% 0.50% 0.55% Asset Quality Trends
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 41 Noninterest income sources comprised approximately 16.5% of total operating revenue during Q1 2023; provides stable revenue stream $ in M ill io ns Total Revenue - Five Quarter Trend $9.9 $10.2 $11.0 $11.9 $11.6 $2.6 $2.1 $2.7 $2.4 $2.8 Net Interest Income Noninterest Income Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $0.0 $4.0 $8.0 $12.0 $16.0 Insurance Commissions $1,922 76.6% Other Income $141 5.6% Service Fees $445 17.8% Revenue Diversification Q1 2023 - Noninterest Income Mix (000's)
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 42 (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 $ in 000's $3,047 $118 $3,929 $4,152 $4,156 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Adjusted Net Income $ in 000's $3,059 $275 $3,619 $4,086 $4,029 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Net Income and Adjusted Net Income(1) – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 43 (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 0.58 0.02 0.77 0.81 0.79 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (0.25) 0.00 0.25 0.50 0.75 1.00 1.25 1.50 Adjusted EPS - Diluted 0.59 0.05 0.71 0.80 0.77 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 (0.25) 0.00 0.25 0.50 0.75 1.00 1.25 1.50 (1) EPS - Diluted and Adjusted EPS - Diluted(1) – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 44 (1) Net Interest Margin (GAAP) was 3.08%, 3.12%, 3.29%, 3.45%, and 3.51%, respectively, for the same time periods. 3.32% 3.37% 3.68% 4.04% 4.32% 3.10% 3.13% 3.30% 3.46% 3.52% 0.33% 0.36% 0.57% 0.86% 1.19% Yield on Earning Assets Net Interest Margin (FTE) Cost of Funds Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Net Interest Margin (FTE)(1)
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 45 (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 69.21%, 68.55%, 64.18%, 63.25%, and 62.72%, respectively, for the same time periods. 65.88% 64.18% 63.02% 60.74% 60.23% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 55.00% 57.50% 60.00% 62.50% 65.00% 67.50% 70.00% Adjusted Efficiency Ratio(1)
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 46 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%, 0.03%, 1.12%, 1.16% and 1.21%, respectively, for the same time periods. ROAE (GAAP) was 9.50%, 0.40%, 13.60%, 15.26%, and 14.69%, respectively, for the same time periods. 0.87% 0.08% 1.03% 1.15% 1.18% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 9.54% 0.93% 12.53% 15.01% 14.24% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00%
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 47 11.95% 11.95% 13.18% 7.76% 12.33% 12.33% 13.58% 8.66% 12.60% 12.60% 13.69% 9.24% December 31, 2021 December 31, 2022 March 31, 2023 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% Strong Capital Ratios (Community Bank)
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 48 ◦ Community bank model is highly-differentiated compared with large regional banks experiencing recent regulatory issues ◦ Intense focus on 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 Metropolitan and across our footprint ◦ Maintain / expand our relatively low-cost deposit base which enables the bank to deliver attractive net interest margins ◦ Leverage our credit culture and strong loan underwriting as a foundation to uphold our asset quality metrics Be the Community Bank of choice across our footprint for residents and small and medium-sized businesses Concluding Thoughts
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 49 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 Global Market: CBFV 100 N. Market Street Carmichaels, PA 15320 Phone: (724) 966-5041 Fax: (724) 966-7867 Contact Information
Appendix
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 51 Selected Financial Condition Data (Dollars in thousands) (Unaudited) 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 ASSETS Cash and Due From Banks $ 103,545 $ 103,700 $ 122,801 $ 81,121 $ 123,588 Securities 189,025 190,058 193,846 213,505 231,097 Loans Real Estate: Residential 332,840 330,725 328,248 325,138 317,254 Commercial 452,770 436,805 432,516 426,105 427,227 Construction 39,522 44,923 49,502 41,277 54,227 Commercial and Industrial PPP 65 126 768 3,853 8,242 Other Commercial and Industrial 79,436 69,918 61,428 62,054 59,601 Consumer 146,081 146,927 150,615 148,921 143,422 Other 21,151 20,449 19,865 20,621 10,669 Total Loans 1,071,865 1,049,873 1,042,942 1,027,969 1,020,642 Allowance for Credit Losses (10,270) (12,819) (12,854) (12,833) (11,595) Loans, Net 1,061,595 1,037,054 1,030,088 1,015,136 1,009,047 Premises and Equipment, Net 17,732 17,844 18,064 18,196 18,349 Bank-Owned Life Insurance 24,943 25,893 25,750 25,610 25,468 Goodwill 9,732 9,732 9,732 9,732 9,732 Intangible Assets, Net 3,068 3,513 3,959 4,404 4,850 Accrued Interest Receivable and Other Assets 21,068 21,144 21,680 18,757 16,539 Total Assets $ 1,430,708 $ 1,408,938 $ 1,425,920 $ 1,386,461 $ 1,438,670 LIABILITIES Deposits Non-Interest Bearing Demand Deposits Accounts $ 350,911 $ 390,405 $ 407,107 $ 389,127 $ 400,105 Interest Bearing Demand Accounts 359,051 311,825 298,755 265,347 280,455 Money Market Accounts 206,174 209,125 198,715 185,308 192,929 Savings Accounts 234,935 248,022 250,378 250,226 247,589 Time Deposits 130,449 109,126 120,879 125,182 129,235 Total Deposits 1,281,520 1,268,503 1,275,834 1,215,190 1,250,313 Short-Term Borrowings 121 8,060 18,108 32,178 39,219 Other Borrowings 14,648 14,638 17,627 17,618 17,607 Accrued Interest and Other Liabilities 17,224 7,582 7,645 7,703 9,375 Total Liabilities 1,313,513 1,298,783 1,319,214 1,272,689 1,316,514 STOCKHOLDERS’ EQUITY $ 117,195 $ 110,155 $ 106,706 $ 113,772 $ 122,156 Total Liabilities and Stockholders' Equity $ 1,430,708 $ — $ 1,408,938 $ — $ 1,425,920 $ — $ 1,386,461 $ — $ 1,438,670 Selected Consolidated Financial Information
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 52 Three Months Ended Selected Operating Data 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 Interest and Dividend Income Loans, Including Fees $ 12,371 $ 11,835 $ 10,815 $ 9,733 $ 9,551 Securities: Taxable 964 974 985 988 905 Tax-Exempt 41 40 49 57 66 Dividends 24 28 21 20 22 Other Interest and Dividend Income 844 978 417 160 72 Total Interest and Dividend Income 14,244 13,855 12,287 10,958 10,616 Interest Expense Deposits 2,504 1,811 1,079 604 530 Short-Term Borrowings 2 7 19 18 19 Other Borrowings 155 171 174 173 174 Total Interest Expense 2,661 1,989 1,272 795 723 Net Interest and Dividend Income 11,583 11,866 11,015 10,163 9,893 Provision for Credit Losses 80 — — 3,784 — Net Interest and Dividend Income After Provision for Credit Losses 11,503 11,866 11,015 6,379 9,893 Noninterest Income: Service Fees 445 530 544 559 526 Insurance Commissions 1,922 1,399 1,368 1,369 1,798 Other Commissions 144 157 244 179 89 Net Gain on Sales of Loans 2 — — — — Net (Loss) Gain on Securities (232) 83 (46) (199) (7) Net Gain on Purchased Tax Credits 7 14 14 14 14 Net Gain (Loss) on Disposal of Fixed Assets 11 — 439 — (8) Income from Bank-Owned Life Insurance 140 143 140 142 136 Net Gain on Bank Owned Life Insurance Claims 302 — — — — Other Income 69 34 36 41 65 Total Noninterest Income 2,810 2,360 2,739 2,105 2,613 Noninterest Expense: Salaries and Employee Benefits 5,079 4,625 4,739 4,539 4,565 Occupancy 701 817 768 776 686 Equipment 218 178 170 182 210 Data Processing 857 681 540 446 485 FDIC Assessment 152 154 147 128 209 PA Shares Tax 260 258 240 240 240 Contracted Services 147 405 288 348 587 Legal and Professional Fees 182 362 334 389 152 Advertising 79 165 131 115 116 Other Real Estate Owned (Income) (37) (38) (38) (37) (38) Amortization of Intangible Assets 445 446 445 446 445 Other 945 945 1,063 838 999 Total Noninterest Expense 9,028 8,998 8,827 8,410 8,656 Income Before Income Tax (Benefit) Expense 5,285 5,228 4,927 74 3,850 Income Tax (Benefit) Expense 1,129 1,076 998 (44) 803 Net Income $ 4,156 $ 4,152 $ 3,929 $ 118 $ 3,047 (Dollars in thousands) (Unaudited) Quarterly Income Statements
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 53 (1) Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and Adjusted ROAE in the Appendix section. (2) Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets in the Appendix section. Three Months Ended Per Common Share Data 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 Dividends Per Common Share $ 0.25 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Earnings Per Common Share - Basic 0.81 0.81 0.77 0.02 0.59 Earnings Per Common Share - Diluted 0.79 0.81 0.77 0.02 0.58 Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.77 0.80 0.71 0.05 0.59 Weighted Average Common Shares Outstanding - Basic 5,109,597 5,095,237 5,106,861 5,147,846 5,198,194 Weighted Average Common Shares Outstanding - Diluted 5,262,982 5,104,254 5,118,627 5,156,975 5,220,887 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 Common Shares Outstanding 5,116,830 5,100,189 5,096,672 5,128,333 5,156,897 Book Value Per Common Share $ 22.90 $ 21.60 $ 20.94 $ 22.18 $ 23.69 Tangible Book Value per Common Share (Non-GAAP) (2) 20.40 19.00 18.25 19.43 20.86 Stockholders’ Equity to Assets 8.2 % 7.8 % 7.5 % 8.2 % 8.5 % Tangible Common Equity to Tangible Assets (Non-GAAP) (2) 7.4 6.9 6.6 7.3 7.6 Per Common Share Data
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 54 Three Months Ended Selected Financial Ratios (2) 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 Return on Average Assets 1.21 % 1.16 % 1.12 % 0.03 % 0.87 % Adjusted Return on Average Assets (Non-GAAP) (1) 1.18 1.15 1.03 0.08 0.87 Return on Average Equity 14.69 15.26 13.60 0.40 9.50 Adjusted Return on Average Equity (Non-GAAP) (1) 14.24 15.01 12.53 0.93 9.54 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 147.53 149.04 149.41 149.03 144.48 Average Equity to Average Assets 8.27 7.63 8.20 8.49 9.14 Net Interest Rate Spread 3.12 3.17 3.10 3.00 2.98 Net Interest Rate Spread (FTE) (Non-GAAP) (1) 3.13 3.18 3.11 3.01 2.99 Net Interest Margin 3.51 3.45 3.29 3.12 3.08 Net Interest Margin (FTE) (Non-GAAP) (1) 3.52 3.46 3.30 3.13 3.10 Net (Recoveries) Charge-offs to Average Loans (0.29) 0.01 (0.01) 1.01 (0.01) Efficiency Ratio 62.72 63.25 64.18 68.55 69.21 Adjusted Efficiency Ratio (Non-GAAP) (1) 60.23 60.74 63.02 64.18 65.88 Asset Quality Ratios 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 Allowance for Credit Losses to Total Loans 0.96 % 1.22 % 1.23 % 1.25 % 1.14 % Allowance for Credit Losses to Nonperforming Loans (3) 143.44 221.06 218.61 219.89 158.88 Allowance for Credit Losses to Noncurrent Loans (4) 189.73 320.64 318.96 329.47 218.28 Delinquent and Nonaccrual Loans to Total Loans (4) (5) 1.02 0.81 0.46 0.45 0.79 Nonperforming Loans to Total Loans (3) 0.67 0.55 0.56 0.57 0.72 Noncurrent Loans to Total Loans (4) 0.51 0.38 �� 0.39 0.38 0.52 Nonperforming Assets to Total Assets (6) 0.52 0.41 0.41 0.42 0.51 Capital Ratios (7) 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.60 % 12.33 % 12.02 % 11.83 % 11.99 % Tier 1 Capital (to Risk Weighted Assets) 12.60 12.33 12.02 11.83 11.99 Total Capital (to Risk Weighted Assets) 13.69 13.58 13.27 13.08 13.20 Tier 1 Leverage (to Adjusted Total Assets) 9.24 8.66 8.51 8.33 8.19 (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this presentation 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 all nonaccrual loans and accruing loans that are 90 days or more past due. (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. Selected Financial Ratios / Asset Quality Ratios / Capital Ratios
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 55 (1) Annualized based on three months ended results. (2) Net of allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable (3) Refer to Explanation and Use of Non-GAAP Financial Measures in this presentation for the calculation of the measure and reconciliation to the most comparable GAAP measure. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) 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. (6) Net interest margin represents net interest income divided by average total interest-earning assets. Three Months Ended March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 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) $ 1,040,570 $ 12,391 4.83 % $ 1,034,714 $ 11,853 4.54 % $ 1,024,363 $ 10,833 4.20 % $ 1,007,874 $ 9,751 3.88 % $ 1,009,210 $ 9,573 3.85 % Debt Securities Taxable 213,158 964 1.81 216,915 974 1.80 222,110 985 1.77 228,315 988 1.73 215,906 905 1.68 Exempt From Federal Tax 6,270 52 3.32 6,277 51 3.25 7,998 62 3.10 9,109 73 3.21 10,195 84 3.30 Equity Securities 2,693 24 3.56 2,693 28 4.16 2,693 21 3.12 2,693 20 2.97 2,693 22 3.27 Interest Bearing Deposits at Other Banks 74,555 805 4.32 99,108 939 3.79 67,870 378 2.23 56,379 122 0.87 59,296 33 0.22 Other Interest-Earning Assets 2,633 39 6.01 2,875 39 5.38 2,784 39 5.56 3,235 38 4.71 3,483 39 4.54 Total Interest-Earning Assets 1,339,879 14,275 4.32 1,362,582 13,884 4.04 1,327,818 12,318 3.68 1,307,605 10,992 3.37 1,300,783 10,656 3.32 Noninterest-Earning Assets 48,369 51,718 68,796 84,323 122,288 Total Assets $ 1,388,248 $ 1,414,300 $ 1,396,614 $ 1,391,928 $ 1,423,071 Liabilities and Stockholders' Equity: Interest-Bearing Liabilities: Interest-Bearing Demand Deposits $ 335,327 1,191 1.44 % $ 315,352 810 1.02 % $ 278,412 393 0.56 % $ 260,655 111 0.17 % $ 276,603 48 0.07 % Savings 242,298 37 0.06 249,948 29 0.05 251,148 20 0.03 248,356 20 0.03 243,786 19 0.03 Money Market 213,443 939 1.78 206,192 604 1.16 189,371 269 0.56 188,804 61 0.13 192,425 41 0.09 Time Deposits 101,147 337 1.35 116,172 368 1.26 123,438 397 1.28 127,832 412 1.29 132,015 422 1.30 Total Interest-Bearing Deposits 892,215 2,504 1.14 887,664 1,811 0.81 842,369 1,079 0.51 825,647 604 0.29 844,829 530 0.25 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 1,344 2 0.60 8,985 7 0.31 28,738 19 0.26 34,135 18 0.21 37,884 19 0.20 Other Borrowings 14,641 155 4.29 17,598 171 3.86 17,621 174 3.92 17,611 173 3.94 17,604 174 4.01 Total Interest-Bearing Liabilities 908,200 2,661 1.19 914,247 1,989 0.86 888,728 1,272 0.57 877,393 795 0.36 900,317 723 0.33 Noninterest-Bearing Demand Deposits 362,343 391,300 390,658 391,975 384,188 Accrued Interest Payable and Other Liabilities 2,953 788 2,636 4,415 8,554 Total Liabilities 1,273,496 1,306,335 1,282,022 1,273,783 1,293,059 Stockholders' Equity 114,752 107,965 114,592 118,145 130,012 Total Liabilities and Stockholders' Equity $ 1,388,248 $ 1,414,300 $ 1,396,614 $ 1,391,928 $ 1,423,071 Net Interest Income (FTE) (Non-GAAP) (3) 11,614 11,895 11,046 10,197 9,933 Net Interest-Earning Assets (4) 431,679 448,335 439,090 430,212 400,466 Net Interest Rate Spread (FTE)(Non-GAAP) (3) (5) 3.13 % 3.18 % 3.11 % 3.01 % 2.99 % Net Interest Margin (FTE) (Non-GAAP) (3)(6) 3.52 3.46 3.30 3.13 3.10 PPP Loans 100 3 12.17 216 22 40.41 2,424 123 20.13 5,546 144 10.41 14,673 445 12.30 Average Balances and Yields
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 56 Three Months Ended Year Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/22 12/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (GAAP) $ 4,156 $ 4,152 $ 3,929 $ 118 $ 3,047 $ 11,247 $ 11,570 Adjustments (Gain) Loss on Securities 232 (83) 46 199 7 168 (526) (Gain) on Sale of Branches — — — — — — (5,203) (Gain) Loss on Disposal of Fixed Assets (11) — (439) — 8 (431) 3 Net Gain on Bank-owned life insurance claims (302) — — — — — — Tax effect (46) 17 83 (42) (3) 55 1,202 Non-Cash Charges: Intangible Asset and Goodwill Impairment — — — — — — 1,178 Writedown on Fixed Assets — — — — — — 2,293 Tax Effect — — — — — — — Adjusted Net Income (Non-GAAP) $ 4,029 $ 4,086 $ 3,619 $ 275 $ 3,059 $ 11,039 $ 10,517 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,262,982 5,104,254 5,118,627 5,156,975 5,220,887 5,149,312 5,392,729 Earnings per Common Share - Diluted (GAAP) $ 0.79 $ 0.81 $ 0.77 $ 0.02 $ 0.58 $ 2.18 $ 2.15 Adjusted Earnings per Common Share - Diluted (Non- GAAP) $ 0.77 $ 0.80 $ 0.71 $ 0.05 $ 0.59 $ 2.14 $ 1.95 Net Income (GAAP) (Numerator) $ 4,156 $ 4,152 $ 3,929 $ 118 $ 3,047 $ 11,247 $ 11,570 Annualization Factor 4.06 3.97 3.97 4.01 4.06 1.00 1.00 Average Assets (Denominator) $ 1,388,248 $ 1,414,300 $ 1,396,614 $ 1,391,928 $ 1,423,071 1,406,428 1,464,454 Return on Average Assets (GAAP) 1.21 % 1.16 % 1.12 % 0.03 % 0.87 % 0.80 % 0.79 % Adjusted Net Income (Non-GAAP) (Numerator) $ 4,029 $ 4,086 $ 3,619 $ 275 $ 3,059 $ 11,039 $ 10,517 Annualization Factor 4.06 3.97 3.97 4.01 4.06 1.00 1.00 Average Assets (Denominator) $ 1,388,248 $ 1,414,300 $ 1,396,614 $ 1,391,928 $ 1,423,071 1,406,428 1,464,454 Adjusted Return on Average Assets (Non-GAAP) 1.18 % 1.15 % 1.03 % 0.08 % 0.87 % 0.78 % 0.72 % Share Price $ 21.71 Divided by: Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 2.39 Price to EPS (GAAP) 9.1x Share Price $ 21.76 Divided by: Adjusted Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 0.77 Price to Adjusted EPS (Non-GAAP) 28.3x Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS and Adjusted ROAA
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 57 Three Months Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 (Dollars in thousands) (Unaudited) Net Income (GAAP) $ 4,156 $ 4,152 $ 3,929 $ 118 $ 3,047 Adjustments Loss (Gain) on Securities 232 (83) 46 199 7 (Gain) Loss on Disposal of Fixed Assets (11) — (439) — 8 Net Gain on Bank-owned life insurance claims (302) — — — — Tax effect (46) 17 83 (42) (3) Adjusted Net Income (Non-GAAP) $ 4,029 $ 4,086 $ 3,619 $ 275 $ 3,059 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,262,982 5,104,254 5,118,627 5,156,975 5,220,887 Earnings per Common Share - Diluted (GAAP) $ 0.79 $ 0.81 $ 0.77 $ 0.02 $ 0.58 Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.77 $ 0.80 $ 0.71 $ 0.05 $ 0.59 Net Income (GAAP) (Numerator) $ 4,156 4,152 3,929 118 3,047 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) $ 114,752 107,965 114,592 118,145 130,012 Return on Average Equity (GAAP) 14.69 % 15.26 % 13.60 % 0.40 % 9.50 % Adjusted Net Income (Non- GAAP) (Numerator) $ 4,029 $ 4,086 $ 3,619 $ 275 $ 3,059 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) $ 114,752 107,965 114,592 118,145 130,012 Adjusted Return on Average Equity (Non-GAAP) 14.24 % 15.01 % 12.53 % 0.93 % 9.54 % Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS and Adjusted ROAE Share Price $ 21.71 Divided by: Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 2.39 Price to EPS (GAAP) 9.1x Share Price $ 21.71 Divided by: Adjusted Earnings per Common Share - Diluted (non-GAAP) (Last 12 Months) $ 2.33 Price to Adjusted EPS (Non-GAAP) 9.3x
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 58 Three Months Ended Year Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/22 12/31/21 (Dollars in thousands, except share and per share data) Stockholders' Equity (GAAP) $ 117,195 $ 110,155 $ 106,706 $ 113,772 $ 122,156 $ 110,155 $ 133,124 Goodwill and Intangible Assets, Net (12,800) (13,245) (13,691) (14,136) (14,582) (13,245) (15,027) Tangible Common Equity or Tangible Book Value (Non-GAAP) $ 104,395 $ 96,910 $ 93,015 $ 99,636 $ 107,574 $ 96,910 $ 118,097 Common Shares Outstanding 5,116,830 5,100,189 5,096,672 5,128,333 5,156,897 5,100,189 5,260,672 Book Value per Common Share (GAAP) $ 22.90 $ 21.60 $ 20.94 $ 22.18 $ 23.69 $ 21.60 $ 25.31 Tangible Book Value per Common Share (Non-GAAP) $ 20.40 $ 19.00 $ 18.25 $ 19.43 $ 20.86 $ 19.00 $ 22.45 Total Assets (GAAP) $ 1,430,708 $ 1,408,938 $ 1,425,920 $ 1,386,461 $ 1,438,670 $ 1,408,938 $ 1,425,479 Goodwill and Intangible Assets, Net (12,800) (13,245) (13,691) (14,136) (14,582) (13,245) (15,027) Tangible Assets (Non-GAAP) $ 1,417,908 $ 1,395,693 $ 1,412,229 $ 1,372,325 $ 1,424,088 $ 1,395,693 $ 1,410,452 Stockholders' Equity to Assets (GAAP) 8.2 % 7.8 % 7.5 % 8.2 % 8.5 % 7.8 % 9.3 % Tangible Common Equity / Tangible Assets (Non-GAAP) 7.4 % 6.9 % 6.6 % 7.3 % 7.6 % 6.9 % 8.4 % Share Price as of March 31, 2023 $ 21.71 Price to Book Value (GAAP) 0.95x Price to Tangible Book Value (Non-GAAP) 1.06x Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 59 Three Months Ended Year Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/22 12/31/21 (Dollars in thousands) Net Income (GAAP) $ 4,156 $ 4,152 $ 3,929 $ 118 $ 3,047 $ 3,047 $ 11,570 Amortization of Intangible Assets, Net 445 446 445 446 445 445 1,926 Goodwill Impairment — — — — — — 1,178 Adjusted Net Income (Non-GAAP) (Numerator) $ 4,601 $ 4,598 $ 4,374 $ 564 $ 3,492 $ 3,492 $ 14,674 Annualization Factor 4.06 3.97 3.97 4.01 4.06 4.06 1.00 Average Stockholders' Equity (GAAP) $ 114,752 $ 107,965 $ 114,592 $ 118,145 $ 130,012 $ 130,012 $ 133,605 Average Goodwill and Intangible Assets, Net (13,080) (13,534) (13,968) (14,414) (14,870) (14,870) (16,591) Average Tangible Common Equity (Non-GAAP) (Denominator) $ 101,672 $ 94,431 $ 100,624 $ 103,731 $ 115,142 $ 115,142 $ 117,014 Return on Average Equity (GAAP) 14.69 % 15.26 % 13.60 % 0.40 % 9.50 % 9.50 % 8.66 % Return on Average Tangible Common Equity (Non-GAAP) 18.35 % 19.32 % 17.25 % 2.18 % 12.30 % 12.30 % 12.54 % Non-GAAP Financial Measures: Return on Average Tangible Common Equity
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 60 Three Months Ended Year Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/22 12/31/21 (Dollars in thousands) Interest Income per Consolidated Statement of Income (GAAP) $ 14,244 $ 13,855 $ 12,287 $ 10,958 $ 10,616 $ 10,616 $ 43,557 Adjustment to FTE Basis 31 29 31 34 40 40 172 Interest Income (FTE) (Non-GAAP) $ 14,275 $ 13,884 $ 12,318 $ 10,992 $ 10,656 $ 10,656 $ 43,729 Interest Expense per Consolidated Statement of Income (GAAP) 2,661 1,989 1,272 795 723 723 3,405 Net Interest Income (FTE) (Non-GAAP) $ 11,614 $ 11,895 $ 11,046 $ 10,197 $ 9,933 $ 9,933 $ 40,324 Net Interest Income (GAAP) $ 11,583 $ 11,866 $ 11,015 $ 10,163 $ 9,893 $ 9,893 $ 40,152 Net Interest Rate Spread (GAAP) 3.12 % 3.17 % 3.10 % 3.00 % 2.98 % 2.98 % 2.81 % Adjustment to FTE Basis 0.01 0.01 0.01 0.01 0.01 0.01 0.01 Net Interest Rate Spread (FTE) (Non-GAAP) 3.13 % 3.18 % 3.11 % 3.01 % 2.99 % 2.99 % 2.82 % Divided by: Average Interest Earning Assets $ 1,339,879 $ 1,362,582 $ 1,327,818 $ 1,307,605 $ 1,300,783 $ 1,300,783 $ 1,373,379 Multiplied by: Annualization Factor 4.0556 3.9674 3.9674 4.0110 4.0556 4.0556 1.0000 Net Interest Margin (FTE) (Non-GAAP) 3.52 % 3.46 % 3.30 % 3.13 % 3.10 % 3.10 % 2.94 % Net Interest Margin (GAAP) 3.51 % 3.45 % 3.29 % 3.12 % 3.08 % 3.08 % 2.92 % Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 61 Three Months Ended Year Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/22 12/31/21 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest expense (GAAP) $ 9,028 $ 8,998 $ 8,827 $ 8,410 $ 8,656 $ 34,891 $ 42,862 Net Interest and Dividend Income (GAAP) 11,583 11,866 11,015 10,163 9,893 42,935 40,152 Noninterest Income (GAAP) 2,810 2,360 2,739 2,105 2,613 9,819 16,280 Operating Revenue (GAAP) $ 14,393 $ 14,226 $ 13,754 $ 12,268 $ 12,506 $ 52,754 $ 56,432 Efficiency Ratio (GAAP) 62.72 % 63.25 % 64.18 % 68.55 % 69.21 % 66.14 % 75.95 % Adjusted Efficiency Ratio (Non-GAAP) Noninterest expense (GAAP) $ 9,028 $ 8,998 $ 8,827 $ 8,410 $ 8,656 $ 34,891 $ 42,862 Less: Other Real Estate Owned (Income) (37) (38) (38) (37) (38) (151) (183) Amortization of Intangible Assets, Net 445 446 445 446 445 1,782 1,926 Intangible Assets and Goodwill Impairment — — — — — — 1,178 Writedown on Fixed Assets — — — — — — 2,293 Adjusted Noninterest Expense (Non-GAAP) $ 8,620 $ 8,590 $ 8,420 $ 8,001 $ 8,249 $ 33,260 $ 37,648 Net Interest and Dividend Income (GAAP) $ 11,583 $ 11,866 $ 11,015 $ 10,163 $ 9,893 $ 42,935 $ 40,152 Noninterest Income (GAAP) 2,810 2,360 2,739 2,105 2,613 9,819 16,280 Less: Net (Loss) Gain on Securities (232) 83 (46) (199) (7) (169) 526 Gain on Sale of Branches — — — — — — 5,203 Net Gain (Loss) on Disposal of Fixed Assets 11 — 439 — (8) 431 (3) Net Gain on Bank-Owned Life Insurance Claims 302 — — — — — — Adjusted Noninterest Income (Non-GAAP) $ 2,729 $ 2,277 $ 2,346 $ 2,304 $ 2,628 $ 9,557 $ 10,554 Adjusted Operating Revenue (Non-GAAP) $ 14,312 $ 14,143 $ 13,361 $ 12,467 $ 12,521 $ 52,492 $ 50,706 Adjusted Efficiency Ratio (Non-GAAP) 60.23 % 60.74 % 63.02 % 64.18 % 65.88 % 63.36 % 74.25 % Non-GAAP Financial Measures: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 62 Non-GAAP Financial Measures: Core Earnings (1) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Interest Income (GAAP) $ 14,244 $ 13,855 $ 12,287 $ 10,958 $ 10,616 Noninterest Income (GAAP) 2,810 2,360 2,739 2,105 2,613 Loss (Gain) on securities 232 (83) 46 199 7 (Gain) loss on disposal of Fixed Assets (11) — (439) — 8 Gain from Bank-Owned Life Insurance Claims (302) — — — — PPP Fees (3) (22) (117) (130) (405) Core Income (Non-GAAP) $ 16,970 $ 16,110 $ 14,516 $ 13,132 $ 12,839 Interest Expense (GAAP) $ 2,661 $ 1,989 $ 1,272 $ 795 $ 723 Noninterest Expense (GAAP) 9,028 8,998 8,827 8,410 8,656 Core Expense (Non-GAAP) $ 11,689 $ 10,987 $ 10,099 $ 9,205 $ 9,379 Core Earnings (Non-GAAP) $ 5,281 $ 5,123 $ 4,417 $ 3,927 $ 3,460 (1) Core Earnings adjusted for provision, PPP fees, other one-time items, and branch optimization expenses that were previously reported in the Company's quarterly press release filings with the Securities and Exchange Commission ("SEC") from March 31, 2022 through March 31, 2023.
CB Financial Services, Inc. (Nasdaq: CBFV) April 2023 Page 63 Three Months Ended Last 12 Months Year Ended 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 3/31/23 12/31/22 12/31/21 (Dollars in thousands) Net Income Before Income Tax Expense (Benefit) (GAAP) $ 5,285 $ 5,228 $ 4,927 $ 74 $ 3,850 $ 15,514 $ 14,079 $ 14,695 Provision (Recovery) for Credit Losses 80 — — 3,784 — 3,864 3,784 (1,125) Goodwill and Intangible Asset Impairment — — — — — — — 1,178 Writedown on Fixed Assets — — — — — — — 2,293 PTPP Net Income (Non-GAAP) (Numerator) $ 5,365 $ 5,228 $ 4,927 $ 3,858 $ 3,850 $ 19,378 $ 17,863 $ 17,041 Annualization Factor 4.0556 3.9674 3.9674 4.0110 4.0556 1.0000 1.0000 1.0000 Average Assets (Denominator) $ 1,388,248 $ 1,414,300 $ 1,396,614 $ 1,391,928 $ 1,423,071 $ 1,323,315 $ 1,406,428 $ 1,286,686 PTPP Return on Average Assets (Non-GAAP) 1.57 % 1.47 % 1.40 % 1.11 % 1.10 % 1.46 % 1.27 % 1.32 % Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets