CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 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) October 2022 Page 3 “We partner with individuals, businesses and communities to realize their dreams, protect their financial futures and improve their lives “ Mission Statement
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 4 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) October 2022 Page 5 Corporate Overview Headquartered in Southwestern, Pennsylvania Community Bank (the "Bank"), the wholly-owned subsidiary of CB Financial Services, Inc. operates eleven 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 $1.04 billion $1.28 billion Founded in 1901 (1) Data is as of September 30, 2022
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 6 CBFV Share Price $20.98 Shares Outstanding 5.1M Public Float 4.7M Market Cap 107.2M Total Stockholders' Equity $106.7M Book Value per Common Share $20.94 Tangible Book Value per Common Share (1) $18.25 Price to Book Value 1.04x Price to Tangible Book Value (1) 1.19x P/E LTM (LTM EPS of $2.68) 7.83x P/E LTM (LTM Adjusted EPS of $1.88) (1) 11.16x ◦ All daily trading information/multiples as of October 25, 2022 ◦ All other financial information as of September 30, 2022 (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) October 2022 Page 7 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) October 2022 Page 8 Pittsburgh Metropolitan Area • 2.4 million people, including surrounding counties, with a median household income at $50,536(1) • Large market for energy, healthcare, technology, and manufacturing companies Large, Diverse Market Large Employers in Operating Area • Fortune 500 companies headquartered in Pittsburgh include: Kraft Heinz, PPG Industries, U.S. Steel, Alcoa, Dick’s Sporting Goods, and WESCO International(2) • The largest employers within the operating area include: Education • Carnegie Mellon University and the University of Pittsburgh bring tech jobs and innovation to the area, both through direct university activities and by providing a steady stream of graduates for employment elsewhere in the community • UPMC is investing $2 billion in three new specialty hospitals in Pittsburgh and is constructing a new hospital facility in Washington County, PA Opening of Southern Beltway • Pittsburgh’s first major highway in decades • 110,000 drivers connected between Washington County and Pittsburgh International Airport 1. https://www.statista.com/statistics/815309/pittsburgh-metro-area-population/#:~:text=In%202021%2C%20the%20population%20of,was%20about%202.37%20million%20people. 2. http://fortune.com/fortune500/ Attractive Operating Market
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 9 O N G O IN G C O M M U N IC A T IO N 2H 2 02 1 1H 2 02 2 Q 3 20 22 PHASES ACTION BUSINESS BANKING TEAM LENDING INITIATIVES • Efficiency in indirect auto loan process while not sacrificing credit quality • Leveraged CB’s 120th anniversary to generate awareness LEADERSHIP • Added seasoned commercial and retail sales leaders tasked with driving growth • Credit management team has experience managing credit through prior recessionary periods GOAL: Leverage strong brand recognition and lending relationships to support organic loan growth and enhance revenue generating potential in CB’s core markets MOVING FORWARD • Identify Talent • Productivity Management • Leverage Resilient and Scalable Franchise Revenue Generating Initiatives • Created Business Banking Team with over 70 years of combined experience in the current market. • Updated Small Business lending policy to enable extreme responsiveness and processing.
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 10 Senior Executive Vice President & Chief Credit Officer, Director since 2018 Nearly 35 years of experience with CBFV Responsibilities include oversight of credit and underwriting policies Ralph Burchianti Senior Executive Vice President & Chief Operations Officer. Appointed SEVP in October 2021, EVP – COO in 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. Responsibilities include overseeing operations tied to client experience and employee engagement functions Ben Brown Executive Vice President, Chief Commercial Banking Officer since February 2022. Responsibilities include all commercial sales, customer service, process, and product initiatives Bruce Sharp Executive Vice President & Chief Financial Officer. 20+ years of banking experience with over 10 years in CEO/ CFO role.Responsible for financial oversight, SEC/Regulatory reporting, strategic planning Jamie Prah Alan Bicker Executive Vice President, Chief Consumer Banking Officer since March 2022 Responsibilities include all retail bank operations and related support systems Executive Leadership Team
Strong Q3 Performance
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 12 Q3 2022 – Highlights of the Quarter Improvement in Multiple Key Metrics(1) • Net Interest Margin (NIM) of 3.29%, up 17 basis points from the second quarter • Q3 2022 adjusted Efficiency Ratio (non-GAAP) of 63.0%, compared with 77.3% in Q3 2021. • Pre-tax, pre-provision (PTPP) net income of $4.9M in Q3 2022 was up 102.2% compared with $2.4M during Q3 2021 Loan momentum and Capital redeployment to shareholders continues • Loans, excluding Payroll Protection Program (PPP) loans, grew $18.1 million (7.1% annualized) from June 30, 2022 • Tier 1 capital remains strong at 12.0%, compared with 11.8% at June 30, 2022 • Repurchased 30,271 shares at an average cost of $22.39, with $8.7 million of remaining availability (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) October 2022 Page 13 Financial Update – Q3 2022 2019 FY 2020 FY 2021 FY Q3 2021 Q3 2022 ($000s except per share) 12/31/19 12/31/20 12/31/21 9/30/21 9/30/22 Balance Sheet Total Assets $ 1,321,537 $ 1,416,720 $ 1,425,479 $ 1,474,818 $ 1,425,920 Total Loans 952,496 1,044,753 1,020,796 1,019,006 1,042,942 Total Deposits 1,118,359 1,224,569 1,226,613 1,287,803 1,275,834 Tangible Common Equity(2) 112,145 116,399 118,097 115,515 93,015 Loans/ Deposits 85.2 % 85.3 % 83.2 % 79.1 % 81.7 % Capital Ratios (%) Tier 1 Leverage 7.85 % 7.81 % 7.76 % 7.38 % 8.51 % Tangible. Common Equity / Tangible Assets(2) 8.74 8.32 8.37 7.92 6.59 Tier 1 Ratio(3) 11.40 11.80 11.95 11.53 12.02 Total Capital Ratio(3) 12.50 13.00 13.18 12.77 13.27 Asset Quality (%)(1) NPAs/ Assets 0.42 % 1.04 % 0.51 % 0.74 % 0.41 % NCOs/ Avg Loans 0.05 0.11 — (0.01) (0.01) Reserves/ Nonaccrual Loans 340 117 233 135 319 Profitability Net Income (Loss) $ 14,327 $ (10,640) $ 11,570 $ 1,983 $ 3,929 ROAA 1.09 % (0.77) % 0.79 % 0.54 % 1.12 % PTPP ROAA(2) 1.28 1.05 1.32 0.66 1.40 ROAE 9.89 (7.18) 8.66 5.93 13.60 ROATCE(2) 15.09 8.86 12.54 8.24 17.25 Net Interest Margin (FTE)(2) 3.64 3.32 2.94 2.89 3.30 Adjusted Efficiency Ratio(2) 63.83 68.14 74.25 77.27 63.02 Diluted EPS $ 2.63 $ (1.97) $ 2.15 $ 0.37 $ 0.77 TBV Per Share(2) 20.52 21.42 22.45 21.67 18.25 • Diluted EPS (GAAP) for Q3 2022 was $0.77, compared to $0.37 in the prior year period • NIM (FTE) (Non-GAAP) increased 41 bps year-over-year to 3.30% compared with Q3 2021 of 2.89% on declining asset yields slightly offset by lower interest-bearing deposit costs • Total loans (including PPP loans) were $1.04 billion, an increase of $22.1 million compared to prior year end • Total loans (excluding PPP loans) were $1.04 billion, a increase of $45.9 million compared to the prior year end • Total deposits were $1.28 billion, an increase of $49.2 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 $1.43 billion at the prior year end
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 14 Period ended balances excluding PPP loans were $1.04 billion at September 30, 2022 compared to $968.9 million at September 30, 2021, an increase of 7.6%. in m ill io ns Quarter End Loan Balances $969 $996 $1,012 $1,024 $1,042 Total Loans excluding PPP(1) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $700 $750 $800 $850 $900 $950 $1,000 $1,050 $1,100 Quarterly Loan Growth excluding PPP loans (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations.
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 15 After completion of the branch optimization in June 2021, there has been continuous growth in core earnings from $2.7 million to $4.4 million in the three months ended September 30, 2022, an increase of 61.9%. in th ou sa nd s $3,164 $3,005 $3,024 $3,059 $2,729 $3,297 $3,449 $3,460 $3,927 $4,417 Core Earnings Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $0 $1,000 $2,000 $3,000 $4,000 $5,000 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 Q2 2020 as noted, $3.6 million, $(17.6) million, $3.7 million, $3.8 million, $(369,000), $2.4 million, $8.9 million, $3.9 million, $74,000, $4.9 million Core Earnings(1) Growth
Driving Margins by Controlling Costs
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 17 ▪ 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 $208,853 $183,024 $245,865 $258,995 FY 2019 FY 2020 FY 2021 FY 2022 (Annualized) $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 $260,000 Revenue Metrics Benefiting from Optimization Efforts
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 18 ◦ Reduced overall branch locations from 22 to 14 over the past 7 quarters ◦ Gaining traction in reduction of non-interest expense, including salaries ◦ 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 $55,662 $58,385 $79,757 $80,488 $87,615 $89,308 $86,799 $91,131 Total Deposits Deposits Per Branch 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 $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) October 2022 Page 19 * Peers include public and private Pennsylvania banks with total assets of $1 billion to $5 billion as of 6/30/22. Source: S&P Global Market Intelligence; Financial data as of 6/30/22. 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 Q1 2022 Q2 2022 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Favorable Cost of Deposits
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 20 * Peers include public and private Pennsylvania banks with total assets of $1 billion to $5 billion as of 6/30/22. Source: S&P Global Market Intelligence; Financial data as of 6/30/22. CB Has Maintained a Higher Non-Interest Bearing Deposit Compared to Peers Average* Through the Most Recent Cycle CB Peers 2018 2019 2020 2021 1H 2022 10% 15% 20% 25% 30% 35% Non-Interest Bearing Deposit Market Advantage
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 21 Total income is increasing while total expenses remain flat over the prior 5 quarters, producing positive operating leverage. in th ou sa nd s Core Income (1) Core Expense (1) Income Trendline Expense Trendline Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $— $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 1. Core income/expense based on adjustments made in Non-GAAP Financial Measures: Core Earnings table in Appendix Operating Leverage Benefiting From Optimization
Credit Insights
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 23 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) October 2022 Page 24 Credit Breakdown by Industry Industry Breakdown Total Outstanding Balance ($000) % of Total Loans Retail Space $ 118,404 $ 1,042,942,000 11.4 % Multifamily 76,589 7.3 Office Space 59,562 5.7 Senior Housing 26,603 2.6 Hotels 17,217 1.7 Oil and Gas 10,071 1.0 Restaurants 3,752 0.4 Total Industries $ 312,198 29.9 % ▪ No loans are in deferral as of 9/30/2022 ▪ Exposure includes categories of CRE, Construction CRE, and C&I loans Source: Company information as of 9/30/2022 Retail 37.9% Multifamily 24.6% Office Space 19.1% Senior Housing 8.5% Hotels 5.5% Oil and Gas 3.2% Restaurants 1.2% Diversified Commercial Book Reduces Recession Sensitivity
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 25 Borrower Credit Score Bands Borrower Credit Score Bands Total Outstanding Balance ($000) % of Indirect Loans % of Total Loans > 800 $ 64,436 46.2 % 6.2 % 740-799 49,419 35.4 82 % 4.7 700-739 16,163 11.6 1.5 661-699 7,852 5.6 0.8 640-660 616 0.4 0.1 < 640 1,017 0.7 $ 1,042,942,000.00 .1 Total $ 139,503 100.0 % 13.4 % Key Takeaways: • Indirect Auto represents 13.4% of our total loan portfolio • Within Indirect Auto, 46.2% 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 Source: Company information as of 9/30/2022 < 640 0.7% 640-660 0.5% 661-699 5.6% 700-739 11.6%740-799 35.4% > 800 46.2% Indirect Auto Lending Supported by Prime Borrower Relationships
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 26 Borrower Loan to Value Bands Borrower Loan to Value Bands Total Outstanding Balance ($000) % of Residential Loans % of Total Loans < 50% $ 84,395 26.8 % $ 1,042,942,000 8.1 % 50% - 59% 38,040 12.1 $ 1 3.6 60% - 69% 57,044 18.1 5.5 70% - 79% 84,869 27.0 8.1 80% - 89% 29,165 9.3 2.8 90% - 99% 20,408 6.5 2.0 > 100% 861 0.3 0.1 Total Borrower Loan to Value Bands $ 314,781 100.0 % 30.2 % Key Takeaways: • Mortgage loans represent 30.2% of our total loan portfolio • Within our mortgage book, 26.8% of loans carried an LTV of less than 50% at the time of underwriting • 57.0% of loans carried an LTV of 69% or lower at the time of underwriting Source: Company information as of 9/30/2022 < 50% 26.8% 50% - 59% 12.1% 60% - 69% 18.1% 70% - 79% 26.9% 80% - 89% 9.3% 90% - 99% 6.5% > 100% 0.3% Residential Real Estate Segment Characterized by Conservative Loan to Value (LTVs)
Returning Capital to Shareholders
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 28 Community Bank has paid a regular quarterly dividend of $0.24 per share since Q1 2019 Completed $7.5 million repurchase program in February 2022 308,996 Total Shares Average Cost $24.27 Authorized new $10 million repurchase program in April 2022 57,710 Shares purchased as of September 30, 2022 Average Cost $22.51 Strong Capital Position Allows us to Maintain Shareholder-friendly Initiatives Despite an Economic Uncertainty Shareholder Friendly Programs
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 29 Q3 2022 Update
Key Financial Metrics
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 31 ◦ Continuing to focus on credit underwriting standards ◦ Providing personalized customer engagement that leads to repeat and referral business ◦ Focusing on growth in core deposits ◦ Branch optimization ($ in m ill io ns ) Total Assets $1,321.5 $1,416.7 $1,425.5 $1,425.9 12/31/19 12/31/20 12/31/21 09/30/22 $600 $800 $1,000 $1,200 $1,400 $1,600 Operating Initiatives Have Led to a High-Quality Balance Sheet
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 32 Expertise in Commercial Real Estate Commercial & Industrial 6.0% Real Estate- Construction 4.7% Real Estate- Commercial 41.5% Real Estate- Residential 31.5% Consumer 14.4% Other 1.9% (as of September 30, 2022) ($ in m ill io ns ) Total Loans $952.8 $1,044.8 $1,020.8 $1,042.9 12/31/19 12/31/20 12/31/21 09/30/22 $500.0 $600.0 $700.0 $800.0 $900.0 $1,000.0 $1,100.0 Loan Growth Trend and CRE Loan Composition
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 33 Owner Occupied CRE Loans by Industry – $100.2M Non-Owner Occupied CRE Loans by Industry – $332.3M Source: Company information as of 9/30/2022 Retail Space 33.6% Other Non-Farm/Non- Residential 17.5% Warehouse Space 13.5% Office Space 12.7% Medical Facilities 6.5% Manufacturing 3.9% Churches 3.6% Senior Housing 3.5% Restaurant 2.2% Other 3.0% Retail Space 25.3% Multifamily 22.4% Warehouse Space 14.5% Office Space 11.2% Manufacturing 7.7% Senior Housing 5.7% Hotels 5.1% Medical Facilities 3.4% Other Non-Farm/ Non-Residential 2.7% Oil and Gas 1.6%Restaurants 0.4% Industry CRE Portfolio
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 34 C&I Loans by Industry – $61.4M excl. PPP Source: Company information as of 9/30/2022 Manufacturing 14.8% Arts, Entertainment and Recreation 10.4% Real Estate Rental and Leasing 10.1% Professional, Scientific, and Technical Services 9.1% Senior Housing 6.8% Retail Trade 6.6% Oil and Gas 6.1% Educational Services 5.9% Wholesale Trade 5.3% Finance and Insurance 5.1% Construction 4.5% Health Care and Social Assistance 4.3% Administrative and Support and Waste Management and Remediation Services 3.6% Transportation and Warehousing 2.8% Utilities 2.1% Other Services 2.1% Other C&I Industries 0.4% Industry C&I Portfolio
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 35 (as of September 30, 2022) ($ in m ill io ns ) Total Deposits $1,118.4 $1,224.6 $1,226.6 $1,275.8 12/31/19 12/31/20 12/31/21 09/30/22 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 Deposit Composition Non-Interest Bearing Demand Deposits 31.9% Interest Bearing Demand Deposits 23.4% Money Market Accounts 15.6% Savings Accounts 19.6% Time Deposits 9.5% Source: Company information as of 9/30/2022 Total Deposits and Deposit Composition
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 36 NCOs (Recoveries)/Average LoansNon-Current Loans/Total Loans Allowance for Loan Losses to Total Loans NPAs/Total Assets 0.85% 0.49% 0.52% 0.38% 0.39% 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% (0.01)% 0.03% (0.01)% 1.01% (0.01)% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.16% 1.13% 1.14% 1.25% 1.23% 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 1.10% 1.15% 1.20% 1.25% 1.30% 0.74% 0.51% 0.51% 0.42% 0.41% 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% Asset Quality Trends
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 37 • Noninterest income sources comprised approximately 18.2% of total operating revenue during Q3 2022; provides stable revenue stream • Q4 2021 Non interest income included $5.2 million from the sale of branches as part of optimization initiative $ in M ill io ns Total Revenue - Five Quarter Trend ($M) $10.0 $10.2 $9.9 $10.2 $11.0 $2.2 $8.7 $2.6 $2.1 $2.7 Net Interest Income Non Interest Income Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $0.0 $4.0 $8.0 $12.0 $16.0 $20.0 Q3 2022 - Noninterest Income Mix (000's) Insurance Commissions $1,368 49.9% Other Income $827 30.2% Service Fees $544 19.9% Revenue Diversification
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 38 (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 $1,983 $6,965 $3,047 $118 $3,929 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $0 $2,000 $4,000 $6,000 $8,000 Adjusted Net Income (1) $ in 000's $1,966 $2,843 $3,059 $275 $3,619 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 $0 $2,000 $4,000 $6,000 $8,000 Net Income and Adjusted Net Income(1) – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 39 (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 0.37 1.31 0.58 0.02 0.77 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (0.25) 0.00 0.25 0.50 0.75 1.00 1.25 1.50 Adjusted EPS - Diluted 0.36 0.53 0.59 0.05 0.71 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (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) October 2022 Page 40 (1) Net Interest Margin (GAAP) was 2.88%, 2.95%, 3.08%, 3.12%, and 3.29%, respectively, for the same time periods. 3.11% 3.17% 3.32% 3.37% 3.68% 2.89% 2.96% 3.10% 3.13% 3.30% 0.33% 0.31% 0.33% 0.36% 0.57% Yield on Earning Assets Net Interest Margin Cost of Funds Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 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) October 2022 Page 41 (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 80.05%, 52.71%, 69.21%, 68.55%, and 64.18%, respectively, for the same time periods. 77.27% 69.73% 65.88% 64.18% 63.02% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% Adjusted Efficiency Ratio(1)
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 42 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 0.54%, 1.87%, 0.87%, 0.03% and 1.12%, respectively, for the same time periods. ROAE (GAAP) was 5.93%, 20.95%, 9.50%, 0.40%, and 13.60%, respectively, for the same time periods. 0.53% 0.76% 0.87% 0.08% 1.03% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 5.88% 8.55% 9.54% 0.93% 12.53% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 43 11.79% 11.79% 13.04% 7.81% 11.95% 11.95% 13.18% 7.76% 12.02% 12.02% 13.27% 8.51% December 31, 2020 December 31, 2021 September 30, 2022 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) October 2022 Page 44 Estimated % Change in Net Interest Income Over: 0 – 12 Months (1) 13 – 24 Months (2) Change in Interest Rates Actual Actual Up 400 bps 2.53% 2.32% Up 300 bps 2.09% 2.16% Up 200 bps 1.74% 1.94% Up 100 bps 1.36% 1.10% Down 100 bps (2.01)% (0.76)% Source: Company information as of September 30, 2022. (1) Assumes a parallel shift in the yield curve over 12 months, with no change thereafter. (2) Assumes a parallel shift in the yield curve over 24 months, with no change thereafter. • The sensitivity is measured as a percentage change in net interest income given the stated changes in interest rates compared to net interest income with rates unchanged in the same period Interest Rate Risk Sensitivity
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 45 ◦ 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 and expand our 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) October 2022 Page 46 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) October 2022 Page 48 (Dollars in thousands) (Unaudited) Selected Financial Condition Data 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 ASSETS Cash and Due From Banks $ 122,801 $ 81,121 $ 123,588 $ 119,674 $ 173,523 Securities 193,846 213,505 231,097 224,974 221,351 Loans Held for Sale — — — — 17,407 Loans Real Estate: Residential 328,248 325,138 317,254 320,798 317,373 Commercial 432,516 426,105 427,227 392,124 379,621 Construction 49,502 41,277 54,227 85,028 78,075 Commercial and Industrial PPP 768 3,853 8,242 24,523 32,703 Other Commercial and Industrial 61,428 62,054 59,601 64,487 69,657 Consumer 150,615 148,921 143,422 122,152 112,087 Other 19,865 20,621 10,669 11,684 12,083 Total Loans 1,042,942 1,027,969 1,020,642 1,020,796 1,001,599 Allowance for Loan Losses (12,854) (12,833) (11,595) (11,582) (11,581) Loans, Net 1,030,088 1,015,136 1,009,047 1,009,214 990,018 Premises and Equipment Held for Sale — — — — 795 Premises and Equipment, Net 18,064 18,196 18,349 18,399 18,502 Bank-Owned Life Insurance 25,750 25,610 25,468 25,332 25,190 Goodwill 9,732 9,732 9,732 9,732 9,732 Intangible Assets, Net 3,959 4,404 4,850 5,295 5,740 Accrued Interest and Other Assets 21,680 18,757 16,539 12,859 12,560 Total Assets $ 1,425,920 $ 1,386,461 $ 1,438,670 $ 1,425,479 $ 1,474,818 LIABILITIES Deposits Held for Sale $ — $ — $ — $ — $ 102,647 Deposits Non-Interest Bearing Demand Deposits 407,107 389,127 400,105 385,775 373,320 Interest Bearing Demand Accounts 298,755 265,347 280,455 272,518 244,004 Money Market Accounts 198,715 185,308 192,929 192,125 190,426 Savings Accounts 250,378 250,226 247,589 239,482 232,679 Time Deposits 120,879 125,182 129,235 136,713 144,727 Total Deposits 1,275,834 1,215,190 1,250,313 1,226,613 1,185,156 Short-Term Borrowings 18,108 32,178 39,219 39,266 42,623 Other Borrowings 17,627 17,618 17,607 17,601 6,000 Accrued Interest and Other Liabilities 7,645 7,703 9,375 8,875 7,405 Total Liabilities 1,319,214 1,272,689 1,316,514 1,292,355 1,343,831 STOCKHOLDERS’ EQUITY $ 106,706 $ 113,772 $ 122,156 $ 133,124 $ 130,987 Total Liabilities and Stockholders' Equity $ 1,425,920 $ — $ 1,386,461 $ — $ 1,438,670 $ — $ 1,425,479 $ — $ 1,474,818 Selected Consolidated Financial Information
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 49 Three Months Ended Nine Months Ended Selected Operating Data 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21 Interest and Dividend Income Loans, Including Fees $ 10,815 $ 9,733 $ 9,551 $ 9,904 $ 9,718 $ 30,098 $ 29,800 Securities: Taxable 985 988 905 866 843 2,878 2,124 Tax-Exempt 49 57 66 66 71 172 223 Dividends 21 20 22 21 19 64 63 Other Interest and Dividend Income 417 160 72 106 135 649 384 Total Interest and Dividend Income 12,287 10,958 10,616 10,963 10,786 33,861 32,594 Interest Expense Deposits 1,079 604 530 636 715 2,214 2,489 Short-Term Borrowings 19 18 19 26 25 56 72 Other Borrowings 174 173 174 70 36 522 112 Total Interest Expense 1,272 795 723 732 776 2,792 2,673 Net Interest and Dividend Income 11,015 10,163 9,893 10,231 10,010 31,069 29,921 Provision (Recovery) for Loan Losses — 3,784 — 75 — 3,784 (1,200) Net Interest and Dividend Income After Provision (Recovery) for Loan Losses 11,015 6,379 9,893 10,156 10,010 27,285 31,121 Noninterest Income: Service Fees 544 559 526 569 602 1,629 1,762 Insurance Commissions 1,368 1,369 1,798 1,618 1,194 4,535 3,998 Other Commissions 244 179 89 90 93 512 431 Net Gain on Sales of Loans — — — 977 49 — 166 Net (Loss) Gain on Securities (46) (199) (7) 44 24 (252) 482 Net Gain on Purchased Tax Credits 14 14 14 17 18 43 53 Gain on Sale of Branches — — — 5,203 — — — Net Gain (Loss) on Disposal of Fixed Assets 439 — (8) — — 431 (3) Income from Bank-Owned Life Insurance 140 142 136 142 138 418 411 Other Income 36 41 65 29 80 143 291 Total Noninterest Income 2,739 2,105 2,613 8,689 2,198 7,459 7,591 Noninterest Expense: Salaries and Employee Benefits 4,739 4,539 4,565 5,181 4,787 13,843 14,757 Occupancy 768 776 686 619 615 2,230 2,349 Equipment 170 182 210 252 205 561 782 Data Processing 540 446 485 488 541 1,471 1,666 FDIC Assessment 147 128 209 222 293 484 792 PA Shares Tax 240 240 240 173 224 721 714 Contracted Services 288 348 587 1,133 1,441 1,223 2,878 Legal and Professional Fees 334 389 152 206 180 876 788 Advertising 131 115 116 191 225 362 558 Other Real Estate Owned (Income) (38) (37) (38) (30) (89) (113) (153) Amortization of Intangible Assets 445 446 445 445 446 1,336 1,481 Intangible Assets and Goodwill Impairment — — — — — — 1,178 Writedown of Fixed Assets — — — 23 2 — 2,270 Other 1,063 838 999 1,069 903 2,899 2,830 Total Noninterest Expense 8,827 8,410 8,656 9,972 9,773 25,893 32,890 Income Before Income Tax (Benefit) Expense 4,927 74 3,850 8,873 2,435 8,851 5,822 Income Tax (Benefit) Expense 998 (44) 803 1,908 452 1,757 1,217 Net Income $ 3,929 $ 118 $ 3,047 $ 6,965 $ 1,983 $ 7,094 $ 4,605 (Dollars in thousands) (Unaudited) Quarterly Income Statements
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 50 (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 Nine Months Ended Per Common Share Data 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21 Dividends Per Common Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.72 $ 0.72 Earnings Per Common Share - Basic 0.77 0.02 0.59 1.32 0.37 1.38 0.85 Earnings Per Common Share - Diluted 0.77 0.02 0.58 1.31 0.37 1.37 0.85 Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.71 0.05 0.59 0.53 0.36 1.35 1.42 Weighted Average Common Shares Outstanding - Basic 5,106,861 5,147,846 5,198,194 5,291,795 5,373,032 5,150,632 5,412,989 Weighted Average Common Shares Outstanding - Diluted 5,118,627 5,156,975 5,220,887 5,314,537 5,390,128 5,165,376 5,420,792 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 Common Shares Outstanding 5,096,672 5,128,333 5,156,897 5,260,672 5,330,401 Book Value Per Common Share $ 20.94 $ 22.18 $ 23.69 $ 25.31 $ 24.57 Tangible Book Value per Common Share (Non-GAAP) (2) 18.25 19.43 20.86 22.45 21.67 Stockholders’ Equity to Assets 7.5 % 8.2 % 8.5 % 9.3 % 8.9 % Tangible Common Equity to Tangible Assets (Non-GAAP) (2) 6.6 7.3 7.6 8.4 7.9 Per Common Share Data
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 51 Three Months Ended Nine Months Ended Selected Financial Ratios (2) 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21 Return on Average Assets 1.12 % 0.03 % 0.87 % 1.87 % 0.54 % 0.68 % 0.42 % Adjusted Return on Average Assets (Non-GAAP) (1) 1.03 0.08 0.87 0.76 0.53 0.66 0.70 Return on Average Equity 13.60 0.40 9.50 20.95 5.93 7.85 4.59 Adjusted Return on Average Equity (Non-GAAP) (1) 12.53 0.93 9.54 8.55 5.88 7.69 7.65 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 149.41 149.03 144.48 145.09 146.78 147.64 145.56 Average Equity to Average Assets 8.20 8.49 9.14 8.93 9.03 8.61 9.19 Net Interest Rate Spread 3.10 3.00 2.98 2.85 2.77 3.03 2.80 Net Interest Rate Spread (FTE) (Non-GAAP) (1) 3.11 3.01 2.99 2.86 2.78 3.04 2.81 Net Interest Margin 3.29 3.12 3.08 2.95 2.88 3.17 2.92 Net Interest Margin (FTE) (Non-GAAP) (1) 3.30 3.13 3.10 2.96 2.89 3.18 2.93 Net (Recoveries) Charge-offs to Average Loans (0.01) 1.01 (0.01) 0.03 (0.01) 0.33 — Efficiency Ratio 64.18 68.55 69.21 52.71 80.05 67.21 87.68 Adjusted Efficiency Ratio (Non-GAAP) (1) 63.02 64.18 65.88 69.73 77.27 64.33 75.92 Asset Quality Ratios 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 Allowance for Loan Losses to Total Loans 1.23 % 1.25 % 1.14 % 1.13 % 1.16 % Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1) 1.23 1.25 1.15 1.16 1.20 Allowance for Loan Losses to Nonperforming Loans (3) 218.61 219.89 158.88 159.40 106.18 Allowance for Loan Losses to Noncurrent Loans (4) 318.96 329.47 218.28 233.37 135.37 Delinquent and Nonaccrual Loans to Total Loans (4) (5) 0.46 0.45 0.79 0.78 0.97 Nonperforming Loans to Total Loans (3) 0.56 0.57 0.72 0.71 1.09 Noncurrent Loans to Total Loans (4) 0.39 0.38 0.52 0.49 0.85 Nonperforming Assets to Total Assets (6) 0.41 0.42 0.51 0.51 0.74 Capital Ratios (7) 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 Common Equity Tier 1 Capital (to Risk Weighted Assets) 12.02 % 11.83 % 11.99 % 11.95 % 11.53 % Tier 1 Capital (to Risk Weighted Assets) 12.02 11.83 11.99 11.95 11.53 Total Capital (to Risk Weighted Assets) 13.27 13.08 13.20 13.18 12.77 Tier 1 Leverage (to Adjusted Total Assets) 8.51 8.33 8.19 7.76 7.38 (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 nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (4) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (5) Delinquent loans consist of accruing loans that are 30 days or more past due. (6) Nonperforming assets consist of nonperforming loans and other real estate owned. (7) Capital ratios are for Community Bank only. Certain items previously reported may have been reclassified to conform with the current reporting period’s format. Selected Financial Ratios / Asset Quality Ratios / Capital Ratios
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 52 (1) Annualized based on three months ended results. (2) Net of allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable (3) Includes Deposits Held for Sale that were sold in December 2021. (4) 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. (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (7) Net interest margin represents net interest income divided by average total interest-earning assets. Three Months Ended September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 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) $ 1,024,363 $ 10,833 4.20 % $ 1,007,874 $ 9,751 3.88 % $ 1,009,210 $ 9,573 3.85 % $ 1,004,827 $ 9,927 3.92 % $ 1,004,474 $ 9,740 3.85 % Debt Securities Taxable 222,110 985 1.77 228,315 988 1.73 215,906 905 1.68 205,328 866 1.69 197,763 843 1.71 Exempt From Federal Tax 7,998 62 3.10 9,109 73 3.21 10,195 84 3.30 10,477 84 3.21 11,647 90 3.09 Equity Securities 2,693 21 3.12 2,693 20 2.97 2,693 22 3.27 2,693 21 3.12 2,655 19 2.86 Interest Bearing Deposits at Other Banks 67,870 378 2.23 56,379 122 0.87 59,296 33 0.22 150,102 61 0.16 160,935 92 0.23 Other Interest-Earning Assets 2,784 39 5.56 3,235 38 4.71 3,483 39 4.54 3,475 45 5.14 3,512 43 4.86 Total Interest-Earning Assets 1,327,818 12,318 3.68 1,307,605 10,992 3.37 1,300,783 10,656 3.32 1,376,902 11,004 3.17 1,380,986 10,827 3.11 Noninterest-Earning Assets 68,796 84,323 122,288 100,607 88,291 Total Assets $ 1,396,614 $ 1,391,928 $ 1,423,071 $ 1,477,509 $ 1,469,277 Liabilities and Stockholders' Equity Interest-Bearing Liabilities: Interest-Bearing Demand Deposits (3) $ 278,412 393 0.56 % $ 260,655 111 0.17 % $ 276,603 48 0.07 % $ 278,546 51 0.07 % $ 275,411 48 0.07 % Savings (3) 251,148 20 0.03 248,356 20 0.03 243,786 19 0.03 252,387 20 0.03 251,801 21 0.03 Money Market (3) 189,371 269 0.56 188,804 61 0.13 192,425 41 0.09 209,572 57 0.11 198,167 55 0.11 Time Deposits (3) 123,438 397 1.28 127,832 412 1.29 132,015 422 1.30 154,342 508 1.31 168,654 591 1.39 Total Interest-Bearing Deposits (3) 842,369 1,079 0.51 825,647 604 0.29 844,829 530 0.25 894,847 636 0.28 894,033 715 0.32 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 28,738 19 0.26 34,135 18 0.21 37,884 19 0.20 44,709 26 0.23 40,818 25 0.24 Other Borrowings 17,621 174 3.92 17,611 173 3.94 17,604 174 4.01 9,474 70 2.93 6,000 36 2.38 Total Interest-Bearing Liabilities 888,728 1,272 0.57 877,393 795 0.36 900,317 723 0.33 949,030 732 0.31 940,851 776 0.33 Noninterest-Bearing Demand Deposits 390,658 391,975 384,188 388,787 387,746 Accrued Interest Payable and Other Liabilities 2,636 4,415 8,554 7,800 8,019 Total Liabilities 1,282,022 1,273,783 1,293,059 1,345,617 1,336,616 Stockholders' Equity 114,592 118,145 130,012 131,892 132,661 Total Liabilities and Stockholders' Equity $ 1,396,614 $ 1,391,928 $ 1,423,071 $ 1,477,509 $ 1,469,277 Net Interest Income (FTE) (Non-GAAP) (4) 11,046 10,197 9,933 10,272 10,051 Net Interest-Earning Assets (5) 439,090 430,212 400,466 427,872 440,135 Net Interest Rate Spread (FTE)(Non-GAAP) (4) (6) 3.11 % 3.01 % 2.99 % 2.86 % 2.78 % Net Interest Margin (FTE) (Non-GAAP) (4)(7) 3.30 3.13 3.10 2.96 2.89 PPP Loans 2,424 123 20.13 5,546 144 10.41 14,673 445 12.30 29,067 391 5.34 40,313 484 4.76 Average Balances and Yields
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 53 Three Months Ended 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (GAAP) $ 3,929 $ 118 $ 3,047 $ 6,965 $ 1,983 Adjustments Loss (Gain) on Securities 46 199 7 (44) (24) (Gain) on Sale of Branches — — — (5,203) — (Gain) Loss on Disposal of Fixed Assets (439) — 8 — — Tax effect 83 (42) (3) 1,102 5 Non-Cash Charges: Intangible Asset and Goodwill Impairment — — — — — Writedown on Fixed Assets — — — 23 2 Tax Effect — — — — Adjusted Net Income (Non-GAAP) $ 3,619 $ 275 $ 3,059 $ 2,843 $ 1,966 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,118,627 5,156,975 5,220,887 5,314,537 5,390,128 Earnings per Common Share - Diluted (GAAP) $ 0.77 $ 0.02 $ 0.58 $ 1.31 $ 0.37 Adjusted Earnings per Common Share - Diluted (Non- GAAP) $ 0.71 $ 0.05 $ 0.59 $ 0.53 $ 0.36 Net Income (GAAP) (Numerator) $ 3,929 $ 118 $ 3,047 $ 6,965 $ 1,983 Annualization Factor 3.97 4.01 4.06 3.97 3.97 Average Assets (Denominator) $ 1,396,614 $ 1,391,928 $ 1,423,071 $ 1,477,509 $ 1,469,277 Return on Average Assets (GAAP) 1.12 % 0.03 % 0.87 % 1.87 % 0.54 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,619 $ 275 $ 3,059 $ 2,843 $ 1,966 Annualization Factor 3.97 4.01 4.06 3.97 3.97 Average Assets (Denominator) $ 1,396,614 $ 1,391,928 $ 1,423,071 $ 1,477,509 $ 1,469,277 Adjusted Return on Average Assets (Non-GAAP) 1.03 % 0.08 % 0.87 % 0.76 % 0.53 % Three Months Ended 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 (Dollars in thousands) (Unaudited) Net Income (GAAP) (Numerator) $ 3,929 118 3,047 6,965 1,983 Annualization Factor 3.97 4.01 4.06 3.97 3.97 Average Equity (Denominator) (GAAP) $ 114,592 118,145 130,012 131,892 132,661 Return on Average Equity (GAAP) 13.60 % 0.40 % 9.50 % 20.95 % 5.93 % Adjusted Net Income (Non- GAAP) (Numerator) $ 3,619 $ 275 $ 3,059 $ 2,843 $ 1,966 Annualization Factor 3.97 4.01 4.06 3.97 3.97 Average Equity (Denominator) (GAAP) $ 114,592 118,145 130,012 131,892 132,661 Adjusted Return on Average Equity (Non-GAAP) 12.53 % 0.93 % 9.54 % 8.55 % 5.88 % Share Price $ 21.76 Divided by: Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 2.68 Price to EPS (GAAP) 8.1x Share Price $ 21.76 Divided by: Adjusted Earnings per Common Share - Diluted (GAAP) (Last 12 Months) $ 1.88 Price to Adjusted EPS (Non-GAAP) 11.6x Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and Adjusted ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 54 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 12/31/20 12/31/19 (Dollars in thousands, except share and per share data) Stockholders' Equity (GAAP) $ 106,706 $ 113,772 $ 122,156 $ 133,124 $ 130,987 $ 134,530 $ 151,097 Goodwill and Intangible Assets, Net (13,691) (14,136) (14,582) (15,027) (15,472) (18,131) (38,952) Tangible Common Equity or Tangible Book Value (Non-GAAP) $ 93,015 $ 99,636 $ 107,574 $ 118,097 $ 115,515 $ 116,399 $ 112,145 Common Shares Outstanding 5,096,672 5,128,333 5,156,897 5,260,672 5,330,401 5,434,374 5,463,828 Book Value per Common Share (GAAP) $ 20.94 $ 22.18 $ 23.69 $ 25.31 $ 24.57 $ 24.76 $ 27.65 Tangible Book Value per Common Share (Non-GAAP) $ 18.25 $ 19.43 $ 20.86 $ 22.45 $ 21.67 $ 21.42 $ 20.52 Total Assets (GAAP) $ 1,425,920 $ 1,386,461 $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,416,720 $ 1,321,537 Goodwill and Intangible Assets, Net (13,691) (14,136) (14,582) (15,027) (15,472) (18,131) (38,952) Tangible Assets (Non-GAAP) $ 1,412,229 $ 1,372,325 $ 1,424,088 $ 1,410,452 $ 1,459,346 $ 1,398,589 $ 1,282,585 Stockholders' Equity to Assets (GAAP) 7.5 % 8.2 % 8.5 % 9.3 % 8.9 % 9.5 % 11.4 % Tangible Common Equity / Tangible Assets (Non-GAAP) 6.6 % 7.3 % 7.6 % 8.4 % 7.9 % 8.3 % 8.7 % Share Price ( as of September 30, 2022) $ 21.76 Price to Book Value (GAAP) 1.04x Price to Tangible Book Value (Non-GAAP) 1.19x 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) October 2022 Page 55 Three Months Ended Full Year 9/30/22 9/30/21 12/31/21 12/31/20 12/31/19 (Dollars in thousands) Net Income (Loss) (GAAP) $ 3,929 $ 1,983 $ 11,570 $ (10,640) $ 14,327 Amortization of Intangible Assets, Net 445 446 1,926 2,128 1,532 Goodwill Impairment — — 1,178 18,693 — Adjusted Net Income (Non-GAAP) (Numerator) $ 4,374 $ 2,429 $ 14,674 $ 10,181 $ 15,859 Annualization Factor 3.97 3.97 1.00 1.00 1.00 Average Stockholders' Equity (GAAP) $ 114,592 $ 132,661 $ 133,605 $ 148,132 $ 144,903 Average Goodwill and Intangible Assets, Net (13,968) (15,754) (16,591) (33,207) (39,782) Average Tangible Common Equity (Non-GAAP) (Denominator) $ 100,624 $ 116,907 $ 117,014 $ 114,925 $ 105,121 Return on Average Equity (GAAP) 13.60 % 5.93 % 8.66 % (7.18) % 9.89 % Return on Average Tangible Common Equity (Non-GAAP) 17.25 % 8.24 % 12.54 % 8.86 % 15.09 % Non-GAAP Financial Measures: Return on Average Tangible Common Equity
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 56 Three Months Ended Full Year 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 12/31/21 12/31/20 12/31/19 (Dollars in thousands) Interest Income per Consolidated Statement of Income (GAAP) $ 12,287 $ 10,958 $ 10,616 $ 10,963 $ 10,786 $ 43,557 $ 47,467 $ 51,031 Adjustment to FTE Basis 31 34 40 41 41 172 211 251 Interest Income (FTE) (Non-GAAP) $ 12,318 $ 10,992 $ 10,656 $ 11,004 $ 10,827 $ 43,729 $ 47,678 $ 51,282 Interest Expense per Consolidated Statement of Income (GAAP) 1,272 795 723 732 776 3,405 5,563 7,857 Net Interest Income (FTE) (Non-GAAP) $ 11,046 $ 10,197 $ 9,933 $ 10,272 $ 10,051 $ 40,324 $ 42,115 $ 43,425 Net Interest Income (GAAP) $ 11,015 $ 10,163 $ 9,893 $ 10,231 $ 10,010 $ 40,152 $ 41,904 $ 43,174 Net Interest Rate Spread (GAAP) 3.10 % 3.00 % 2.98 % 2.85 % 2.77 % 2.81 % 3.13 % 3.40 % Adjustment to FTE Basis 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 Net Interest Rate Spread (FTE) (Non-GAAP) 3.11 % 3.01 % 2.99 % 2.86 % 2.78 % 2.82 % 3.15 % 3.42 % Divided by: Average Interest Earning Assets $ 1,327,818 $ 1,307,605 $ 1,300,783 $ 1,376,902 $ 1,380,986 $ 1,373,380 $ 1,268,833 $ 1,192,371 Multiplied by: Annualization Factor 3.9674 4.0110 4.0556 3.9674 3.9674 1.0000 1.0000 1.0000 Net Interest Margin (FTE) (Non-GAAP) 3.30 % 3.13 % 3.10 % 2.96 % 2.89 % 2.94 % 3.32 % 3.64 % Net Interest Margin (GAAP) 3.29 % 3.12 % 3.08 % 2.95 % 2.88 % 2.92 % 3.30 % 3.62 % Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 57 Three Months Ended Full Year 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 12/31/21 12/31/20 12/31/19 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest expense (GAAP) $ 8,827 $ 8,410 $ 8,656 $ 9,972 $ 9,773 $ 42,862 $ 56,767 $ 34,960 Net Interest and Dividend Income (GAAP) 11,015 10,163 9,893 10,231 10,010 40,152 41,904 43,174 Noninterest Income (GAAP) 2,739 2,105 2,613 8,689 2,198 16,280 9,471 8,567 Operating Revenue (GAAP) $ 13,754 $ 12,268 $ 12,506 $ 18,920 $ 12,208 $ 56,432 $ 51,375 $ 51,741 Efficiency Ratio (GAAP) 64.18 % 68.55 % 69.21 % 52.71 % 80.05 % 75.95 % 110.50 % 67.57 % Adjusted Efficiency Ratio (Non-GAAP) Noninterest expense (GAAP) $ 8,827 $ 8,410 $ 8,656 $ 9,972 $ 9,773 $ 42,862 $ 56,767 $ 34,960 Less: Other Real Estate Owned (Income) (38) (37) (38) (30) (89) (183) (69) (103) Amortization of Intangible Assets, Net 445 446 445 445 446 1,926 2,128 2,127 Intangible Assets and Goodwill Impairment — — — — — 1,178 18,693 — Writedown on Fixed Assets — — — 23 2 2,293 1,124 — Adjusted Noninterest Expense (Non-GAAP) $ 8,420 $ 8,001 $ 8,249 $ 9,534 $ 9,414 $ 37,648 $ 34,891 $ 32,936 Net Interest and Dividend Income (GAAP) $ 11,015 $ 10,163 $ 9,893 $ 10,231 $ 10,010 $ 40,152 $ 41,904 $ 43,174 Noninterest Income (GAAP) 2,739 2,105 2,613 8,689 2,198 16,280 9,471 8,567 Less: Net (Loss) Gain on Securities (46) (199) (7) 44 24 526 233 140 Gain on Sale of Branches — — — 5,203 — 5,203 — — Net Gain (Loss) on Disposal of Fixed Assets 439 — (8) — — (3) (61) 2 Adjusted Noninterest Income (Non-GAAP) $ 2,346 $ 2,304 $ 2,628 $ 3,442 $ 2,174 $ 10,554 $ 9,299 $ 8,425 Adjusted Operating Revenue (Non-GAAP) $ 13,361 $ 12,467 $ 12,521 $ 13,673 $ 12,184 $ 50,706 $ 51,203 $ 51,599 Adjusted Efficiency Ratio (Non-GAAP) 63.02 % 64.18 % 65.88 % 69.73 % 77.27 % 74.25 % 68.14 % 63.83 % Non-GAAP Financial Measures: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 58 Non-GAAP Financial Measures: Core Earnings (1) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Interest Income (GAAP) $ 12,287 $ 10,958 $ 10,616 $ 10,963 $ 10,786 $ 10,820 $ 10,988 $ 11,755 $ 11,656 $ 11,727 Noninterest Income (GAAP) 2,739 2,105 2,613 8,689 2,198 2,219 3,174 2,778 2,173 2,648 (Gain) loss on securities 46 199 7 (44) (24) (11) (447) (213) 59 (517) (Gain) on sale of branches — — — (5,203) — — — — — — (Gain) loss on disposal of Fixed Assets (439) — 8 — — 3 — 13 65 — PPP Fees (117) (130) (405) (321) (379) (488) (536) (703) (317) (217) Nonperforming commercial real estate loan (2) — — — (897) — — — — — — Core Income (Non-GAAP) $ 14,516 $ 13,132 $ 12,839 $ 13,187 $ 12,581 $ 12,543 $ 13,179 $ 13,630 $ 13,636 $ 13,641 Interest Expense (GAAP) $ 1,272 $ 795 $ 723 $ 732 $ 776 $ 886 $ 1,011 $ 1,121 $ 1,240 $ 1,406 Noninterest Expense (GAAP) 8,827 8,410 8,656 9,972 9,773 13,722 9,395 9,725 28,968 9,071 Goodwill Impairment — — — — — — — — (18,693) — Branch Optimization(1): Writedown on Fixed Assets — — — (23) (2) (2,268) — (240) (884) — Impairment of Intangible Assets — — — — — (1,178) — — — — Contracted Services — — — (859) (1,212) (434) (268) — — — Employee Severance Costs — — — — — (335) — — — — Branch Lease Impairment — — — — — (227) — — — — Legal and Professional Fees — — — (76) (37) (241) — — — — Data Processing Fees — — — (8) (14) (110) — — — — Other Expenses — — — — — (1) (18) — — — Core Expense (Non-GAAP) $ 10,099 $ 9,205 $ 9,379 $ 9,738 $ 9,284 $ 9,814 $ 10,120 $ 10,606 $ 10,631 $ 10,477 Core Earnings (Non-GAAP) $ 4,417 $ 3,927 $ 3,460 $ 3,449 $ 3,297 $ 2,729 $ 3,059 $ 3,024 $ 3,005 $ 3,164 (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 June 30, 2020 through September 30, 2022. (2) Nonperforming commercial real estate loan was previously reported in the Company's Press Release for the December 31, 2021 time period.
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 59 Three Months Ended Full Year 9/30/22 9/30/21 12/31/21 12/31/20 12/31/19 (Dollars in thousands) Net Income (Loss) Before Income Tax Expense (Benefit) (GAAP) $ 4,927 $ 2,435 $ 14,695 $ (9,392) $ 16,056 Provision for Loan Losses — — (1,125) 4,000 725 Goodwill and Intangible Asset Impairment — — 1,178 18,693 — Writedown on Fixed Assets — 2 2,293 1,124 — PTPP Net Income (Non-GAAP) (Numerator) $ 4,927 $ 2,437 $ 17,041 $ 14,425 $ 16,781 Annualization Factor 3.9674 3.9674 1.0000 1.0000 1.0000 Average Assets (Denominator) $ 1,396,614 $ 1,469,277 $ 1,464,455 $ 1,378,074 $ 1,311,425 PTPP Return on Average Assets (Non-GAAP) 1.40 % 0.66 % 1.16 % 1.05 % 1.28 % Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets
CB Financial Services, Inc. (Nasdaq: CBFV) October 2022 Page 60 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 (Dollars in thousands) Allowance for Loan Losses $ 12,854 $ 12,833 $ 11,595 $ 11,582 $ 11,581 Total Loans $ 1,042,942 $ 1,027,969 $ 1,020,642 $ 1,020,796 $ 1,001,599 PPP Loans (768) (3,853) (8,242) (24,523) (32,703) Total Loans, Excluding PPP Loans (Non-GAAP) $ 1,042,174 $ 1,024,116 $ 1,012,400 $ 996,273 $ 968,896 Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) 1.23 % 1.25 % 1.15 % 1.16 % 1.20 % Non-GAAP Financial Measures: Allowance for Loan Losses, Excluding PPP Loans