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CBFV CB Financial Services

Filed: 4 May 21, 9:11am
Moving Forward – Building a Stronger Community Investor Presentation May 2021


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 2 Forward-Looking Statement 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 (the “Act”). Such forward-looking statements are subject to significant risks and uncertainties. CB Financial Services, Inc. (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, changes in market interest rates, general economic conditions, changes in federal and state regulation, actions by our competitors, loan delinquency rates, our ability to control costs and expenses, and other factors that are described 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 statement 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 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. 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. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in analyzing the Company’s operating results on the same basis as that applied by management. Non-GAAP adjusted items reflect non-cash charges related to goodwill impairment and a writedown on fixed assets from the Monessen branch closure.


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 3 At a Glance – CB Financial Services, Inc. Shareholder Information Share Price $21.50 Shares Outstanding 5.4M Public Float 4.9M Market Cap $116.1M Total Stockholder’s Equity $133.8M Book Value per Share (GAAP) $24.62 Tangible Book Value per Share (Non-GAAP) $21.38 Price to Book Value (GAAP) 0.87X Price to Tangible Book Value (Non-GAAP) 1.1X P/E (LTM Adjusted EPS of $2.01) (Non-GAAP) 10.6x ◼ Community Bank headquartered in Southwestern PA ◼ Founded in 1901 ◼ Currently operating in Southwestern PA, Ohio River Valley and Central WV ◼ Community Bank operates 15 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties in southwestern Pennsylvania, six offices in Brooke, Marshall, Ohio, Upshur and Wetzel Counties in West Virginia, and one office in Belmont County in Ohio. ◼ Financial Overview - Assets: $1.48 Billion - Loans: $1.04 Billion - Deposits: $1.28 Billion ◼ Strategic, disciplined acquirer: ► FedFirst Financial in October 2014 ► First West Virginia in April 2018 ► Beynon Insurance in August 2018 Corporate Overview • All daily trading information/multiples as of April 30, 2021 • All other financial information as of March 31, 2021


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 4 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) May 2021 Page 5 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 and new markets ▪ Subsidiary led by Rich Boyer, Senior Vice President – Insurance Operations & Director, a 30+ year industry veteran ▪ Continued momentum and growth following the Beynon Insurance acquisition in August 2018 ▪ Complementary to commercial and retail banking business ▪ Currently operating in Southwestern PA, Ohio River Valley and Central WV


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 6 ◼ 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 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) May 2021 Page 7 ◼ 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 Large Employers in Operating AreaPittsburgh Metropolitan Area Attractive Operating Markets (1) https://datausa.io/profile/geo/pittsburgh-pa-metro-area/ (2) http://fortune.com/fortune500/


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 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 20+ 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 On February 23, 2021, Community Bank announced initiatives to optimize its current branch network through the consolidation of six branch locations and the possible divestiture of others, while expanding technology and infrastructure investments in its remaining locations Community Bank has engaged with third- party workflow optimization experts to assist in implementing a number of robotic process automations (RPAs) and more effective sales management that it expects will improve operational efficiencies 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) May 2021 Page 9 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) May 2021 Page 10 Evaluating Branch Network ◼ Customer engagement / loyalty ◼ Good credit quality ◼ Generally low-cost deposits ◼ Employees focused on customers / clients Strengths of Existing Network Areas for Improvement ◼ Technological advancements ◼ Need to right size costs ◼ Increased efficiency ◼ Retain the ability to move quickly into new markets CONCLUSION: Community Bank must become more efficient so investments can be made while lowering operating costs.


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 11 Total Operational Efficiency Initiative Management has identified six branches for consolidation while exploring the divestiture of others: ◼ Monongahela, PA ◼ Perryopolis, PA ◼ Pioneer, PA ◼ Southpointe, PA ◼ Bellaire, OH ◼ Wellsburg, 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 improvements ◼ Client experience improvements ◼ Employees focused on customers / clients Identifying Solutions to Improve Operating Performance Branch Consolidation or Potential Divestitures Support Brand While Enhancing Customer Loyalty and Engagement From the Top of the Organization to Every ATM!


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 12 Branch Optimization Efforts Expected Costs / Savings Anticipates non-recurring pre-tax costs during 2021 of up to $6.1 million. This estimated cost excludes the impact of any premium from sale of branches, and assumes no salvage value, lease termination, severance, and other costs associated with the consolidations or sales; however, the Company does anticipate some recovery of these costs over time. CB expects an annual reduction in pre-tax operating expenses in 2021 of approximately $1.5 million, along with $3.0 million of ongoing pre-tax cost savings as a result of the implementation of the branch optimization initiatives. CB anticipates these ongoing savings being incremental to net income beginning in 2022.


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 13 ◼ 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 ◼ Executive Vice President & Chief Operations Officer ◼ Appointed 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


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 14 First Quarter 2021 Highlights Solid Profitability and Growth in Deposits During Period When Company Implemented Optimization Efforts (comparison to December 31, 2020) Net Income Loans and Deposits Tangible Book Value(1) Q1 2021 net income was $2.85 million, or $0.52 per diluted share, compared to net income of $0.8 million, or $0.12 per diluted share, in the prior year period Total loans as of March 31, 2021 were $1.04 billion, a decrease of $3.1 million Total deposits as of March 31, 2021 of $1.28 billion, an increase of $59.9 million Tangible book value per share of $21.38 at March 31, 2021, compared to $21.42 (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure.


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 15 Financial Update – Q1 2021 2017 FY 2018 FY 2019 FY 2020 FY 2020 Q1 2021 Q1 ($000s except per share) 12/31/17 12/31/18 12/31/19 12/31/20 3/31/20 3/31/21 Balance Sheet Total Assets $934,486 $1,281,701 $1,321,537 $1,416,720 $1,313,173 $1,476,821 Total Loans HFI 744,392 912,872 952,496 1,044,753 974,650 1,041,697 Total Deposits 773,344 1,086,658 1,118,359 1,224,569 1,106,640 1,284,463 Tangible Common Equity(2) 85,019 96,545 112,145 116,399 113,105 116,177 Capital Ratios (%) Loans/ Deposits 96.3% 84.0% 85.2% 85.3% 88.1% 81.1% Tang. CE / Tang Assets(2) 9.18 7.78 8.74 8.32 8.87 7.96 Tier 1 Ratio (Bank) 12.2 11.4 11.4 11.8 11.6 11.9 Total Capital Ratio (Bank) 13.5 12.6 12.5 13.0 12.9 13.1 Asset Quality (%)(1) NPAs/ Assets 0.81% 0.56% 0.42% 1.04% 0.42% 0.98% NCOs/ Avg Loans 0.13 0.21 0.05 0.11 0.02 0.02 Reserves/ Nonaccrual Loans 224 291 340 117 407 118 Profitability Net Income (Loss) $6,944 $7,052 $14,327 ($10,640) $773 $2,845 ROAA 0.78% 0.61% 1.09% (0.77%) 0.24% 0.81% PTPP ROAA(2) 1.32 0.96 1.28 1.05 1.05 1.07 ROAE 7.53 5.91 9.89 (7.18) 2.04 8.54 ROATCE(2) 8.7 9.2 15.1 8.9 4.61 11.7 Net Interest Margin (FTE)(2) 3.58 3.59 3.64 3.32 3.57 3.05 Adjusted Efficiency Ratio(2) 66.7 71.1 63.8 68.1 66.2 70.1 Diluted EPS $1.69 $1.40 $2.63 ($1.97) $0.14 $0.52 TBV Per Share(2) 20.76 17.77 20.52 21.42 20.97 21.38 ◼ Diluted EPS for Q1 2021 was $0.52, compared to $0.14 in the prior year period ◼ NIM declined 51bps year-over-year to 3.04% as compared with Q1 2020 of 3.55% on declining asset yields slightly offset by lower interest-bearing deposit costs ◼ Total loans including Payroll Protection Program (“PPP”) loans were $1.04 billion, a decrease of $3.1 million ◼ Total loans (excluding PPP loans) were $981.3 million, a decrease of $8.3 million ◼ Total deposits were $1.28 billion, an increase of $59.9 million ◼ Total assets increased to a record $1.48 billion, compared to $1.42 billion ◼ Regulatory capital levels remain well capitalized and TCE ratio has increased since 12/31/19 Source: Company documents and S&P Global Market Intelligence. Data as of 3/31/21. Regulatory capital ratios are bank-level. (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.


 

Key Financial Metrics


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 17 ▪ 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 Lead to Consistent Growth with a High-Quality Balance Sheet $830.7 $846.1 $934.5 $1,281.7 $1,321.7 $1,416.7 $1,476.8 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 2015 2016 2017 2018 2019 2020 Q1 2021 ($ in millions) Total Assets


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 18 Commercial & Industrial 12% Real Estate- Construction 7% Real Estate- Commercial 36% Real Estate- Residential 33% Consumer 11% Other 1% Strong Expertise in Commercial Real Estate Loan Growth Trend and CRE Loan Composition (as of March 31, 2021) $683.4 $681.9 $744.4 $912.9 $952.5 $1,044.8 $1,041.7 $500 $600 $700 $800 $900 $1,000 $1,100 2015 2016 2017 2018 2019 2020 Q1 2021 ($ in millions) Total Loans


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 19 Non-Interest Bearing Demand Deposits 29% Interest Bearing Demand Accounts 22% Money Market Accounts 16% Savings Accounts 19% Time Deposits 14% Deposit Composition Total Deposits and Composition (as of March 31, 2021) $679.3 $698.2 $773.3 $1,086.7 $1,118.4 $1,224.6 $1,284.5 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 2015 2016 2017 2018 2019 2020 Q1 2021 ($ in millions) Total Deposits


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 20 Asset Quality Trends (as of March 31, 2021) 0.02% -0.01% 0.03% 0.39% 0.02% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 NCOs (Recoveries) / Average Loans 0.31% 0.31% 1.15% 1.04% 1.03% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Non-Performing Loans / Total Loans 1.26% 1.21% 1.31% 1.22% 1.22% 1.16% 1.18% 1.20% 1.22% 1.24% 1.26% 1.28% 1.30% 1.32% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Allowance for Loan Losses to Total Loans 0.42% 0.41% 1.09% 1.04% 0.98% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 NPAs / Assets


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 21 Revenue Diversification ◼ Fee income sources comprised approximately 16.6% of 2020 total operating revenue; provides stable revenue stream ◼ The Exchange Underwriters’ business segment increased approximately 8% on a year-to-date basis in 2020 continuing its strong momentum following the acquisition of Beynon Insurance in August 2018 $10.5 $10.3 $10.4 $10.6 $10.0 $1.9 $2.6 $2.2 $2.8 $3.2 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Total Revenue – Five Quarter Trend ($M) Net Interest Income Fee Income Insurance Commissions $1,595 Other Commissions $165 Net Gain on Sales of Loans $86 Net Gain on Purchased Tax Credits $18 Net Gain on Securities $447 Income from Bank- Owned Life Insurance $137 Service Fees $546 Other Income $180 Q1 2021 – Fee Income Mix $ in Millions $ in 000s


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 22 Net Income (Loss) and Adjusted Net Income – Last 5 Quarters $773 $2,903 $3,079 $2,845 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 ($ in 000s) Net Income ($17,395) $773 $2,903 $1,844 $3,277 $2,845 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q1 2020 Q2 2020 Q3 2020* Q4 2020* Q1 2021 ($ in 000s) Adjusted Net Income1 (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. * Adjusted Net Income in the third and fourth quarter of 2020 included Goodwill Impairment, Writedown on Fixed Assets, and Tax Effect


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 23 EPS (Loss) and Adjusted EPS – Last 5 Quarters $0.14 $0.54 $0.57 $0.52 -$0.1 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 EPS ($3.22) $0.14 $0.54 $0.34 $0.61 $0.52 $0.0 $0.2 $0.3 $0.5 $0.6 $0.8 Q1 2020 Q2 2020 Q3 2020* Q4 2020* Q1 2021 Adjusted EPS1 (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. Adjusted EPS in the third and fourth quarter of 2020 included Goodwill Impairment, Writedown on Fixed Assets, and Tax Effect


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 24 Net Interest Margin (FTE)(1) 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Q1 2020 Q2 2021 Q3 2020 Q4 2020 Q1 2021 Yield on Earning Assets Net Interest Margin Cost of Funds 3.05% 0.44% 3.36% (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. 4.17% 3.57% 0.82%


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 25 Adjusted Efficiency Ratio(1) 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 70.06% (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. 66.18%


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 26 Adjusted Return on Average Assets – ROAA(1) 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 8.54% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 0.81% Adjusted Return on Average Equity – ROAE(1) (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. 0.24% 2.04%


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 27 Strong and Improving Capital Ratios 11.60% 11.60% 12.85% 8.23% 11.79% 11.79% 13.04% 7.81% 11.85% 11.85% 13.10% 7.87% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 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) March 31, 2020 December 31, 2020 March 31, 2021 3/31/20 12/31/20 3/31/21 3/31/20 12/31/20 3/31/21 3/31/20 12/31/20 3/31/21 3/31/20 12/31/20 3/31/21


 

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) May 2021 Page 29 Contact Information Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 Investor Relations Adam Prior Phone: (212) 836-9606 Email: aprior@equityny.com NASDAQ Capital Market: CBFV 100 N. Market Street Carmichaels, PA 15320 Phone: 724-966-5041 Fax: 724-966-7867


 

Appendix


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 31 Selected Consolidated Financial Information Selected Financial Condition Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Total Assets $ 1,476,821 $ 1,416,720 $ 1,392,876 $ 1,407,152 $ 1,313,173 Cash and Due From Banks 230,000 160,911 112,169 131,403 78,099 Securities 142,156 145,400 158,956 148,648 171,411 Loans Real Estate: Residential 339,596 344,142 343,955 344,782 346,864 Commercial 370,118 373,555 353,904 350,506 354,374 Construction 77,714 72,600 69,178 58,295 50,017 Commercial and Industrial 128,931 126,813 144,315 149,085 80,721 Consumer 111,650 113,854 117,364 117,145 121,494 Other 13,688 13,789 22,169 22,346 21,180 Total Loans 1,041,697 1,044,753 1,050,885 1,042,159 974,650 Allowance for Loan Losses (12,725) (12,771) (13,780) (12,648) (12,322) Loans, Net 1,028,972 1,031,982 1,037,105 1,029,511 962,328 Premises and Equipment, Net 20,240 20,302 20,439 21,818 22,037 Goodwill 9,732 9,732 9,732 28,425 28,425 Intangible Assets, Net 7,867 8,399 8,931 9,463 9,995 Deposits Non-Interest Bearing Demand Deposits 377,137 340,569 335,287 341,180 267,369 Interest Bearing Demand Accounts 280,929 259,870 245,850 237,343 229,601 Money Market Accounts 198,975 199,029 188,958 184,726 177,597 Savings Accounts 246,725 235,088 232,691 229,388 220,484 Time Deposits 180,697 190,013 196,250 201,303 211,589 Total Deposits 1,284,463 1,224,569 1,199,036 1,193,940 1,106,640 Short-Term Borrowings 45,352 41,055 42,061 42,349 34,967 Other Borrowings 6,000 8,000 11,000 11,000 11,000 Stockholders’ Equity 133,776 134,530 133,299 152,392 151,525 (Dollars in thousands) (Unaudited)


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 32 Selected Consolidated Financial Information Three Months Ended Selected Operating Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Interest and Dividend Income Loans, Including Fees $ 10,146 $ 10,833 $ 10,709 $ 10,577 $ 10,764 Securities: Taxable 646 725 753 940 1,201 Tax-Exempt 78 78 79 106 106 Dividends 20 20 19 20 20 Other Interest and Dividend Income 98 99 96 84 238 Total Interest and Dividend Income 10,988 11,755 11,656 11,727 12,329 Interest Expense Deposits 947 1,036 1,150 1,305 1,681 Short-Term Borrowings 23 25 28 39 45 Other Borrowings 41 60 62 62 70 Total Interest Expense 1,011 1,121 1,240 1,406 1,796 Net Interest and Dividend Income 9,977 10,634 10,416 10,321 10,533 Provision for Loan Losses — — 1,200 300 2,500 Net Interest and Dividend Income After Provision for Loan Losses 9,977 10,634 9,216 10,021 8,033 Noninterest Income: Service Fees 546 560 554 487 605 Insurance Commissions 1,595 1,403 1,079 1,113 1,283 Other Commissions 165 105 76 188 110 Net Gain on Sales of Loans 86 388 435 441 127 Net Gain (Loss) on Securities 447 213 (59) 517 (438) Net Gain on Purchased Tax Credits 18 16 15 16 15 Net (Loss) Gain on Disposal of Fixed Assets — (13) (65) — 17 Income from Bank-Owned Life Insurance 137 140 140 138 139 Other Income (Loss) 180 (34) (2) (252) 14 Total Noninterest Income 3,174 2,778 2,173 2,648 1,872 Noninterest Expense: Salaries and Employee Benefits 4,894 5,126 5,124 4,828 4,731 Occupancy 710 606 759 699 733 Equipment 266 234 220 224 257 Data Processing 518 476 482 460 425 FDIC Assessment 250 344 172 163 158 PA Shares Tax 265 350 355 333 275 Contracted Services 687 577 531 562 378 Legal and Professional Fees 189 185 161 171 235 Advertising 140 178 148 155 183 Other Real Estate Owned (Income) (38) (39) (12) (1) (17) Amortization of Intangible Assets 532 532 532 532 532 Goodwill Impairment — — 18,693 — — Writedown of Fixed Assets — 240 884 — — Other 982 916 919 945 1,113 Total Noninterest Expense 9,395 9,725 28,968 9,071 9,003 Income (Loss) Before Income Tax Expense (Benefit) 3,756 3,687 (17,579) 3,598 902 Income Tax Expense (Benefit) 911 608 (184) 695 129 Net Income (Loss) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 (Dollars in thousands) (Unaudited)


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 33 Per Common Share Data (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. Three Months Ended Per Common Share Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Dividends Per Common Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Earnings (Loss) Per Common Share - Basic 0.52 0.57 (3.22) 0.54 0.14 Earnings (Loss) Per Common Share - Diluted 0.52 0.57 (3.22) 0.54 0.14 Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.52 0.61 0.34 0.54 0.14 Weighted Average Common Shares Outstanding - Basic 5,434,374 5,404,874 5,395,342 5,393,712 5,431,199 Weighted Average Common Shares Outstanding - Diluted 5,436,881 5,406,068 5,395,342 5,393,770 5,456,867 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Common Shares Outstanding 5,434,374 5,434,374 5,398,712 5,393,712 5,393,712 Book Value Per Common Share $ 24.62 $ 24.76 $ 24.69 $ 28.25 $ 28.09 Tangible Book Value per Common Share (Non-GAAP) (1) 21.38 21.42 21.23 21.23 20.97 Stockholders’ Equity to Assets 9.1 % 9.5 % 9.6 % 10.8 % 11.5 % Tangible Common Equity to Tangible Assets (Non-GAAP) (1) 8.0 8.3 8.3 8.4 8.9


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 34 Selected Financial Ratios /Asset Quality Ratios / Capital Ratios Three Months Ended Selected Financial Ratios (2) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Return on Average Assets 0.81 % 0.87 % (4.90) % 0.85 % 0.24 % Adjusted Return on Average Assets (Non-GAAP) (1) 0.81 0.92 0.52 0.85 0.24 Return on Average Equity 8.54 9.13 (45.13) 7.65 2.04 Adjusted Return on Average Equity (Non-GAAP) (1) 8.54 9.72 4.78 7.65 2.04 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 142.98 141.58 141.98 140.72 135.06 Average Equity to Average Assets 9.48 9.49 10.85 11.08 11.67 Net Interest Rate Spread 2.91 3.07 3.03 3.10 3.34 Net Interest Rate Spread (FTE) (Non-GAAP) (1) 2.92 3.08 3.05 3.12 3.35 Net Interest Margin 3.04 3.21 3.19 3.28 3.55 Net Interest Margin (FTE) (Non-GAAP) (1) 3.05 3.22 3.21 3.30 3.57 Net Charge-offs (Recoveries) to Average Loans 0.02 0.39 0.03 (0.01) 0.02 Efficiency Ratio 71.44 72.51 230.11 69.94 72.58 Adjusted Efficiency Ratio (Non-GAAP) (1) 70.06 68.06 69.78 68.58 66.18 Asset Quality Ratios 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Allowance for Loan Losses to Total Loans (3) 1.22 % 1.22 % 1.31 % 1.21 % 1.26 % Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1) (3) 1.30 1.29 1.41 1.30 1.26 Allowance for Loan Losses to Nonperforming Loans (3) (4) 89.29 88.15 91.84 226.59 235.51 Allowance for Loan Losses to Noncurrent Loans (3) (5) 118.08 117.20 114.01 390.73 406.80 Delinquent and Nonaccrual Loans to Total Loans (5) (6) 1.18 1.50 1.23 0.39 0.89 Nonperforming Loans to Total Loans (4) 1.37 1.39 1.43 0.54 0.54 Noncurrent Loans to Total Loans (5) 1.03 1.04 1.15 0.31 0.31 Nonperforming Assets to Total Assets (7) 0.98 1.04 1.09 0.41 0.42 Capital Ratios (8) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.85 % 11.79 % 11.62 % 11.90 % 11.60 % Tier 1 Capital (to Risk Weighted Assets) 11.85 11.79 11.62 11.90 11.60 Total Capital (to Risk Weighted Assets) 13.10 13.04 12.88 13.16 12.85 Tier 1 Leverage (to Adjusted Total Assets) 7.87 7.81 7.63 7.90 8.23 (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) Loans acquired in connection with the mergers with FedFirst Financial Corporation and First West Virginia Bancorp were recorded at their estimated fair value at the acquisition date and did not include a carryover of the pre-merger allowance for loan losses. (4) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (5) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (6) Delinquent loans consist of accruing loans that are 30 days or more past due. (7) Nonperforming assets consist of nonperforming loans and other real estate owned. (8) 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) May 2021 Page 35 Average Balances and Yields (1) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (2) 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. (3) Net interest margin represents net interest income divided by average total interest-earning assets. (4) Annualized. (5) 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. Three Months Ended March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 Average Balance Interest and Dividends Yield / Cost (4) Average Balance Interest and Dividends Yield / Cost (4) Average Balance Interest and Dividends Yield / Cost (4) Average Balance Interest and Dividends Yield / Cost (4) Average Balance Interest and Dividends Yield / Cost (4) (Dollars in thousands) (Unaudited) Assets: Interest-Earning Assets: Loans, Net $ 1,031,853 $ 10,168 4.00 % $ 1,032,942 $ 10,860 4.18 % $ 1,035,426 $ 10,744 4.13 % $ 1,014,000 $ 10,612 4.21 % $ 950,661 $ 10,796 4.57 % Debt Securities Taxable 122,883 646 2.10 133,026 725 2.18 123,332 753 2.44 137,268 940 2.74 158,655 1,201 3.03 Exempt From Federal Tax 12,943 96 2.97 13,006 96 2.95 13,054 97 2.97 14,106 130 3.69 16,837 127 3.02 Equity Securities 2,632 20 3.04 2,612 20 3.06 2,580 19 2.95 2,579 20 3.10 2,568 20 3.12 Other Interest-Earning Assets 161,871 98 0.25 137,000 99 0.29 123,171 96 0.31 97,033 84 0.35 64,608 238 1.48 Total Interest-Earning Assets 1,332,182 11,028 3.36 1,318,586 11,800 3.56 1,297,563 11,709 3.59 1,264,986 11,786 3.75 1,193,329 12,382 4.17 Noninterest-Earning Assets 92,550 94,262 115,567 113,176 114,056 Total Assets $ 1,424,732 $ 1,412,848 $ 1,413,130 $ 1,378,162 $ 1,307,385 Liabilities and Stockholders' Equity Interest-Bearing Liabilities: Interest-Bearing Demand Deposits $ 259,065 77 0.12 % $ 252,521 83 0.13 % $ 245,977 99 0.16 $ 236,312 141 0.24 $ 226,482 267 0.47 % Savings 239,850 32 0.05 232,647 32 0.05 230,567 32 0.06 227,470 35 0.06 218,328 90 0.17 Money Market 197,395 98 0.20 198,983 131 0.26 185,644 140 0.30 182,656 187 0.41 180,982 249 0.55 Time Deposits 187,114 740 1.60 193,194 790 1.63 198,184 879 1.76 205,847 942 1.84 215,449 1,075 2.01 Total Interest-Bearing Deposits 883,424 947 0.43 877,345 1,036 0.47 860,372 1,150 0.53 852,285 1,305 0.62 841,241 1,681 0.80 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 41,094 23 0.23 43,468 25 0.23 42,512 28 0.26 35,642 39 0.44 29,541 45 0.61 Other Borrowings 7,200 41 2.31 10,543 60 2.26 11,000 62 2.24 11,000 62 2.27 12,780 70 2.20 Total Interest-Bearing Liabilities 931,718 1,011 0.44 931,356 1,121 0.48 913,884 1,240 0.54 898,927 1,406 0.63 883,562 1,796 0.82 Noninterest-Bearing Demand Deposits 349,108 338,223 337,441 317,738 261,504 Other Liabilities 8,869 9,176 8,477 8,815 9,797 Total Liabilities 1,289,695 1,278,755 1,259,802 1,225,480 1,154,863 Stockholders' Equity 135,037 134,093 153,328 152,682 152,522 Total Liabilities and Stockholders' Equity $ 1,424,732 $ 1,412,848 $ 1,413,130 $ 1,378,162 $ 1,307,385 Net Interest Income (FTE) (Non-GAAP) (5) 10,017 10,679 10,469 10,380 10,586 Net Interest-Earning Assets (1) 400,464 387,230 383,679 366,059 309,767 Net Interest Rate Spread (FTE) (Non-GAAP) (2) (5) 2.92 % 3.08 % 3.05 3.12 3.35 % Net Interest Margin (FTE) (Non-GAAP) (3)(5) 3.05 3.22 3.21 3.30 3.57


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 36 Non-GAAP Financial Measures: Adjusted Net Income, EPS, ROAA, ROAE Three Months Ended 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (Loss) (GAAP) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 Non-Cash Charges: Goodwill Impairment — — 18,693 — — Writedown on Fixed Assets — 240 884 — — Tax Effect — (42) (338) — — Adjusted Net Income (Non-GAAP) $ 2,845 $ 3,277 $ 1,844 $ 2,903 $ 773 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,436,881 5,406,068 5,395,342 5,393,770 5,456,867 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.52 $ 0.57 $ (3.22) $ 0.54 $ 0.14 Goodwill Impairment — — 3.46 — — Writedown on Fixed Assets — 0.04 0.16 — — Tax Effect — (0.01) (0.06) — — Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.52 $ 0.61 $ 0.34 $ 0.54 $ 0.14 Net Income (Loss) (GAAP) (Numerator) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 Annualization Factor 4.06 3.98 3.98 4.02 4.02 Average Assets (Denominator) 1,424,732 1,412,848 1,413,130 1,378,162 1,307,385 Return on Average Assets (GAAP) 0.81 % 0.87 % (4.90) % 0.85 % 0.24 % Adjusted Net Income (Non-GAAP) (Numerator) $ 2,845 $ 3,277 $ 1,844 $ 2,903 $ 773 Annualization Factor 4.06 3.98 3.98 4.02 4.02 Average Assets (Denominator) 1,424,732 1,412,848 1,413,130 1,378,162 1,307,385 Adjusted Return on Average Assets (Non-GAAP) 0.81 % 0.92 % 0.52 % 0.85 % 0.24 % Three Months Ended 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 (Dollars in thousands) (Unaudited) Net Income (Loss) (GAAP) (Numerator) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 Annualization Factor 4.06 3.98 3.98 4.02 4.02 Average Equity (Denominator) 135,037 134,093 153,328 152,682 152,522 Return on Average Equity (GAAP) 8.54 % 9.13 % (45.13)% 7.65 % 2.04 % Adjusted Net Income (Loss) (GAAP) (Numerator) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 Annualization Factor 4.06 3.98 3.98 4.02 4.02 Average Equity (Denominator) 135,037 134,093 153,328 152,682 152,522 Adjusted Return on Average Equity (Non-GAAP) 8.54 % 9.72 % 4.78 % 7.65 % 2.04 %


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 37 Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands, except share and per share data) Stockholders' Equity (GAAP) $ 133,776 $ 134,530 $ 133,299 $ 152,392 $ 151,525 $ 151,097 $ 137,625 $ 93,256 Goodwill and Other Instangible Assets, Net (17,599) (18,131) (18,663) (37,888) (38,420) (38,952) (41,080) (8,237) Tangible Common Equity or Tangible Book Value (Non-GAAP) $ 116,177 $ 116,399 $ 114,636 $ 114,504 $ 113,105 $ 112,145 $ 96,545 $ 85,019 Common Shares Outstanding 5,434,374 5,434,374 5,398,712 5,393,712 5,393,712 5,463,828 5,432,289 4,095,957 Book Value per Common Share (GAAP) $ 24.62 $ 24.76 $ 24.69 $ 28.25 $ 28.09 $ 27.65 $ 25.33 $ 22.77 Tangible Book Value per Common Share (Non-GAAP) $ 21.38 $ 21.42 $ 21.23 $ 21.23 $ 20.97 $ 20.52 $ 17.77 $ 20.76 Total Assets $ 1,476,821 $ 1,416,720 $ 1,392,876 $ 1,407,152 $ 1,313,173 $ 1,321,537 $ 1,281,701 $ 934,486 Goodwill and Other Instangible Assets, Net (17,599) (18,131) (18,663) (37,888) (38,420) (38,952) (41,080) (8,237) Tangible Assets (Non-GAAP) $ 1,459,222 $ 1,398,589 $ 1,374,213 $ 1,369,264 $ 1,274,753 $ 1,282,585 $ 1,240,621 $ 926,249 Stockholders' Equity to Assets (GAAP) 9.06% 9.50% 9.57% 10.83% 11.54% 11.43% 10.74% 9.98% Tangible Common Equity / Tangible Assets (Non-GAAP) 7.96% 8.32% 8.34% 8.36% 8.87% 8.74% 7.78% 9.18%


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 38 Non-GAAP Financial Measures: Return on Average Tangible Common Equity Three Months Ended Full Year March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 (Dollars in thousands) Net Income (GAAP) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 $ (10,640) $ 14,327 $ 7,052 $ 6,944 Amortization of Intangible Assets, Net 532 532 532 532 532 2,128 1,532 1,167 348 Goodwill Impairment - - 18,693 - - 18,693 - - - Adjusted Net Income (Non-GAAP) (Numerator) $ 3,377 $ 3,611 $ 1,830 $ 3,435 $ 1,305 $ 10,181 $ 15,859 $ 8,219 $ 7,292 Annualization Factor 4.0556 3.9783 3.9783 4.0220 4.0220 1.0000 1.0000 1.0000 1.0000 Average Stockholders' Equity (GAAP) $ 135,037 $ 134,093 $ 153,328 $ 152,682 $ 152,522 $ 148,132 $ 144,903 $ 119,300 $ 92,263 Average Goodwill and Other Intangible Assets, Net (17,943) (18,441) (37,503) (38,232) (38,767) (33,207) (39,782) (30,012) (8,504) Average Tangible Common Equity (Non-GAAP) (Denominator) $ 117,094 $ 115,652 $ 115,825 $ 114,450 $ 113,755 $ 114,925 $ 105,121 $ 89,288 $ 83,759 Return on Average Equity (GAAP) 8.54 % 9.13 % (45.13)% 7.65 % 2.04 % (7.18)% 9.89 % 5.91 % 7.53 % Return on Average Tangible Common Equity (Non-GAAP) 11.70 % 12.42 % 6.29 % 12.07 % 4.61 % 8.86 % 15.09 % 9.21 % 8.71 %


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 39 Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE) Three Months Ended Full Year 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Interest Income per Consolidated Statement of Income (GAAP) $ 10,988 $ 11,755 $ 11,656 $ 11,727 $ 12,329 $ 47,467 $ 51,031 $ 43,626 $ 32,434 Adjustment to FTE Basis 40 45 53 59 53 211 251 355 585 Interest Income (FTE) (Non-GAAP) $ 11,028 $ 11,800 $ 11,709 $ 11,786 $ 12,382 $ 47,678 $ 51,282 $ 43,981 $ 33,019 Interest Expense per Consolidated Statement of Income 1,011 1,121 1,240 1,406 1,796 5,563 7,857 5,949 3,374 Net Interest Income (FTE) (Non-GAAP) $ 10,017 $ 10,679 $ 10,469 $ 10,380 $ 10,586 $ 42,115 $ 43,425 $ 38,032 $ 29,645 Net Interest Rate Spread (GAAP) 2.91% 3.07% 3.03% 3.10% 3.34% 3.13% 3.40% 3.37% 3.37% Adjustment to FTE Basis 0.01% 0.01% 0.02% 0.02% 0.01% 0.02% 0.02% 0.03% 0.07% Net Interest Rate Spread (FTE) (Non-GAAP) 2.92 % 3.08 % 3.05 % 3.12 % 3.35 % 3.15% 3.42% 3.40% 3.44% Net Interest Margin (GAAP) 3.04% 3.21% 3.19% 3.28% 3.55% 3.30% 3.62% 3.55% 3.51% Adjustment to FTE Basis 0.01% 0.01% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.07% Net Interest Margin (FTE) (Non-GAAP) 3.05% 3.22% 3.21% 3.30% 3.57% 3.32% 3.64% 3.59% 3.58%


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 40 Non-GAAP Financial Measures: Adjusted Efficiency Ratio Three Months Ended Full Year 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2020 12/31/2019 12/31/2018 12/31/2017 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest expense (GAAP) $ 9,395 $ 9,725 $ 28,968 $ 9,071 $ 9,003 $ 56,767 $ 34,960 $ 34,848 $ 24,636 Net Interest and Dividend Income (GAAP) 9,977 10,634 10,416 10,321 10,533 41,904 43,174 37,677 29,060 Noninterest Income (GAAP) 3,174 2,778 2,173 2,648 1,872 9,471 8,567 7,686 7,264 Operating Revenue (GAAP) 13,151 13,412 12,589 12,969 12,405 51,375 51,741 45,363 36,324 Efficiency Ratio (GAAP) 71.44 % 72.51 % 230.11 % 69.94 % 72.58 % 110.50 % 67.57 % 76.82 % 67.82 % Adjusted Efficiency Ratio (Non-GAAP) Noninterest expense (GAAP) $ 9,395 $ 9,725 $ 28,968 $ 9,071 $ 9,003 $ 56,767 $ 34,960 $ 34,848 $ 24,636 Less: Other Real Estate Owned (Income) (38) (39) (12) (1) (17) (69) (103) 48 (349) Amortization of Intangible Assets 532 532 532 532 532 2,128 2,127 1,556 544 Goodwill Impairment - - 18,693 - - 18,693 - - - Writedown on Fixed Assets - 240 884 - - 1,124 - - - Merger Expense - - 854 356 Adjusted Noninterest Expense (Non-GAAP) $ 8,901 $ 8,992 $ 8,871 $ 8,540 $ 8,488 $ 34,891 $ 32,936 $ 32,390 $ 24,085 Net Interest and Dividend Income (GAAP) 9,977 10,634 10,416 10,321 10,533 41,904 43,174 37,677 29,060 Noninterest Income (GAAP) 3,174 2,778 2,173 2,648 1,872 9,471 8,567 7,686 7,264 Less: Net Gain (Loss) on Securities 447 213 (59) 517 (438) 233 140 (63) 199 Net (Loss) Gain on Disposal of Fixed Assets - (13) (65) - 17 (61) 2 (137) - Adjusted Noninterest Income (Non-GAAP) 2,727 2,578 2,297 2,131 2,293 9,299 8,425 7,886 7,065 Adjusted Operating Revenue (Non-GAAP) 12,704 13,212 12,713 12,452 12,826 51,203 51,599 45,563 36,125 Adjusted Efficiency Ratio (Non-GAAP) 70.06 % 68.06 % 69.78 % 68.58 % 66.18 % 68.14 % 63.83 % 71.09 % 66.67 %


 

CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 41 Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets Three Months Ended Full Year 3/31/21 3/31/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Net Income (Loss) Before Income Tax Expense (Benefit) (GAAP) $ 3,756 $ 902 $ (9,392) $ 16,056 $ 8,590 $ 9,818 Provision for Loan Losses - 2,500 4,000 725 2,525 1,870 Goodwill Impairment - - 18,693 - - - Impairment on Fixed Assets - - 1,124 - - - Pre-Tax, Pre-Provision ("PTPP") Net Income (Non- GAAP) (Numerator) $ 3,756 $ 3,402 $ 14,425 $ 16,781 $ 11,115 $ 11,688 Annualization Factor 4.0556 4.0220 1.0000 1.0000 1.0000 1.0000 Average Assets (Denominator) $ 1,424,732 $ 1,307,385 $ 1,378,074 $ 1,311,425 $ 1,152,558 $ 887,150 PTPP Return on Average Assets (Non-GAAP) 1.07% 1.05% 1.05% 1.28% 0.96% 1.32%