Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CB Financial Services, Inc. Announces First Quarter 2022 Financial Results and Declares Quarterly Cash Dividend By: CB Financial Services, Inc. via Business Wire April 28, 2022 at 16:30 PM EDT CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc. (“EU”), a wholly-owned insurance subsidiary of the Bank, today announced its first quarter 2022 financial results. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except per share data) (Unaudited) Net Income (Loss) (GAAP) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Non-Recurring Items (Non-GAAP) (1) 12 (4,122 ) (17 ) 3,440 (353 ) Adjusted Net Income (Non-GAAP) (1) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.58 $ 1.31 $ 0.37 $ (0.04 ) $ 0.52 Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1) $ 0.59 $ 0.53 $ 0.36 $ 0.59 $ 0.46 (1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of net income (loss) and adjusted earnings per common share - diluted in this Press Release. 2022 First Quarter Financial Highlights (Comparisons to three months ended March 31, 2021 unless otherwise noted) Net income was $3.0 million, compared to $2.8 million, largely due to the completion of the Company’s optimization program in 2021, which resulted in a reduction of noninterest expense. Adjusted net income (non-GAAP) was $3.1 million, compared to $2.5 million. Earnings per diluted common share (EPS) increased to $0.58 from $0.52. Adjusted earnings per common share - diluted (non-GAAP) was $0.59, compared to $0.46. Return on average assets (annualized) of 0.87%, compared to 0.81%. Adjusted return on average assets (annualized) (non-GAAP) of 0.87%, compared to 0.71%. Return on average equity (annualized) of 9.50%, compared to 8.54%. Adjusted return on average equity (annualized) (non-GAAP) of 9.54%, compared to 7.48%. Net interest margin (NIM) improved quarter over quarter to 3.08% from 2.95% for the three months ended December 31, 2021. NIM was 3.04% for the prior year period. Net interest and dividend income was $9.9 million, compared to $10.0 million. Noninterest income decreased to $2.6 million, compared to $3.2 million. The most significant changes in noninterest income were a $454,000 reduction in securities gains offset by an increase of $203,000 in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received, partially offset by a decrease in commercial and personal insurance commissions. (Amounts at March 31, 2022; comparisons to December 31, 2021, unless otherwise noted) Total loans, including Payroll Protection Program (“PPP”) loans, were $1.02 billion, a decrease of $154,000. Total loans held for investment, excluding PPP loans, increased $16.1 million, or 6.5% annualized, to $1.01 billion compared to $996.3 million at December 31, 2021 and included 69.7% and 3.6% annualized growth in consumer and commercial real estate loans, respectively. Nonperforming loans to total loans was 0.72%, a increase of 1 bps, compared to 0.71%. Total deposits were $1.25 billion, an increase of $23.7 million, compared to $1.23 billion. Total assets increased to $1.44 billion, compared to $1.43 billion. Book value per share was $23.69, compared to $24.62 at March 31, 2021 and $25.31 at December 31, 2021. Tangible book value per share (Non-GAAP) decreased to $20.86, compared to $21.38 at March 31, 2021 and $22.45 at December 31, 2021. Management Commentary President and CEO John H. Montgomery stated, “Our first quarter benefited from the combination of modest loan growth and improved efficiency levels which resulted in solid bottom-line income growth. We were pleased to see our loans, excluding PPP loans, grow 1.64% in the current quarter, or 6.5% annualized, led by commercial real estate and indirect auto. Our indirect auto loan business was fueled by the investments we have made in process efficiencies, which led directly to improved pull-through rates. We coupled that growth with an improved Efficiency Ratio, which declined 420 basis points from last year’s first quarter to 68.6% and is the result of the optimization program we largely completed last year. This improvement in our Efficiency Ratio is an important foundation supporting our goal of becoming a high performing bank.” Mr. Montgomery continued, “We furthered our commitment to CB shareholders as we completed a $7.5 million share repurchase program in February and have announced a new $10.0 million program, in addition to our regular quarterly dividend. We remain well-capitalized with the ability to support growth along with these shareholder-friendly actions. During the quarter, the Bank invested in sales leadership to accelerate growth. We recently hired Bruce Sharp as our Chief Commercial Banking Officer and Alan Bicker as Chief Consumer Banking Officer. In addition, Benjamin Brown was recently hired as Director of Client Experience and Innovation. All three of these gentlemen possess a wealth of experience and know our markets well. I am excited to have Bruce, Alan and Ben on board as we look to accelerated growth and leverage our work in efficiency and process optimization. Our regional economic activity remains strong and is bolstered by a number of top educational and medical institutions in addition to a strong technology presence, providing an excellent counter-balance to regular economic cycles. In addition, our region is a major supplier of natural gas and we are seeing some benefit from the recent surge in commodity prices.” Dividend Information The Company’s Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about May 31, 2022, to stockholders of record as of the close of business on May 20, 2022. Stock Repurchase Program On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company’s outstanding common stock. The program was effective as of June 14, 2021 and is authorized through June 13, 2022. On February 15, 2022, the Company completed the program, under which a total of 308,996 shares were repurchased at an average price of $24.27 per share for a total of approximately $7.5 million. On April 21, 2022, CB announced a program to repurchase up to $10.0 million of the Company’s outstanding shares of common stock. Based on the Company’s closing stock price on April 19, 2022, the repurchase program, if fully completed, would encompass 433,643 shares, or approximately 8.4% the shares currently outstanding. 2022 First Quarter Financial Review Net Interest and Dividend Income Net interest and dividend income decreased $84,000, or 0.8%, to $9.9 million for the three months ended March 31, 2022 compared to $10.0 million for the three months ended March 31, 2021. Net interest margin (FTE) (Non-GAAP) increased 5 basis points (“bps”) to 3.10% for the three months ended March 31, 2022 compared to 3.05% for the three months ended March 31, 2021. Net interest margin (GAAP) increased to 3.08% for the three months ended March 31, 2022 compared to 3.04% for the three months ended March 31, 2021. CB has controlled its deposit cost structure as deposit balances increased and benefited from non-renewal or repricing of higher-cost time deposits. Interest and dividend income decreased $372,000, or 3.4%, to $10.6 million for the three months ended March 31, 2022 compared to $11.0 million for the three months ended March 31, 2021. Interest income on loans decreased $595,000, or 5.9%, to $9.6 million for the three months ended March 31, 2022 compared to $10.1 million for the three months ended March 31, 2021. The average balance of loans decreased $22.6 million and the average yield decreased 15 bps to 3.85% compared to the three months ended March 31, 2021. Interest and fee income on PPP loans was $445,000 for the three months ended March 31, 2022 and contributed 13 bps to loan yield, compared to $676,000 for the three months ended March 31, 2021, which contributed 5 bps to loan yield. The impact of the accretion of the credit mark on acquired loan portfolios was $56,000 for the three months ended March 31, 2022 compared to $138,000 for the three months ended March 31, 2021, or 2 bps in the current period compared to 6 bps in the prior period. Interest income on taxable investment securities increased $259,000, or 40.1%, to $905,000 for the three months ended March 31, 2022 compared to $646,000 for the three months ended March 31, 2021 driven by a $93.0 million increase in average balance partially offset by a 42 bps decrease in average yield. Interest expense decreased $288,000, or 28.5%, to $723,000 for the three months ended March 31, 2022 compared to $1.0 million for the three months ended March 31, 2021. Interest expense on deposits decreased $417,000, or 44.0%, to $530,000 for the three months ended March 31, 2022 compared to $947,000 for the three months ended March 31, 2021. While average interest-earning deposit balances decreased $38.6 million compared to the three months ended March 31, 2021, controlling the deposit cost structure as deposit balances increased combined with non-renewal or repricing of higher-cost time deposit resulted in a 18 bp, or 41.4%, decrease in average cost compared to the three months ended March 31, 2021. The average balance of time deposits and the related average cost decreased $55.1 million and 30 bps, respectively. Provision for Loan Losses There was no provision for loan losses for either the three months ended March 31, 2022 or the three months ended March 31, 2021. The provision for loan losses remaining constant was primarily due to consistent loan balances between the periods and no significant changes in qualitative factors. Noninterest income Noninterest income decreased $561,000, or 17.7%, to $2.6 million for the three months ended March 31, 2022, compared to $3.2 million for the three months ended March 31, 2021. The decrease was largely due to a $454,000 reduction in securities gains, partially offset by a $203,000 improvement in insurance commissions. The increase in insurance commissions was primarily driven by contingency income of $114,000 which resulted from the higher than lock-in amounts received and commercial insurance commissions, partially offset by a decrease in personal insurance commissions. In addition, net gain on sale of loans decreased $86,000 as there were no loans sold for the three months ended March 31, 2022. Noninterest Expense Noninterest expense decreased $739,000, or 7.9%, to $8.7 million for the three months ended March 31, 2022 compared to $9.4 million for the three months ended March 31, 2021, primarily due to the implementation of branch optimization initiatives begun in 2020 and completed during 2021 which established a lower expense base. Offsetting the lower base in the first quarter were investment in executive leadership tasked with driving growth initiatives. Contracted services decreased $100,000 to $587,000 for the three months ended March 31, 2022 compared to $687,000 for the three months ended March 31, 2021. This was a result of the previously mentioned branch optimization initiatives completed in the prior year. Statement of Financial Condition Review Assets Total assets increased $13.2 million, or 0.9%, to $1.44 billion at March 31, 2022, compared to $1.43 billion at December 31, 2021. Cash and due from banks increased $3.9 million, or 3.3%, to $123.6 million at March 31, 2022, compared to $119.7 million at December 31, 2021. The change is primarily due to an increase in deposits as further described below in the Liabilities section. The increase was partially offset by purchases of securities detailed in the below Securities section. Securities increased $6.1 million, or 2.7%, to $231.1 million at March 31, 2022, compared to $225.0 million at December 31, 2021. Current period activity included $26.8 million of purchases, and $8.3 million of paydowns. The purchases were made to earn a higher yield on excess cash. In addition, there was a $12.4 million decrease in the market value of the debt securities portfolio, primarily due to the increase in market interest rates and a $7,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks. Payroll Protection Program (“PPP”) Update PPP loans decreased $16.3 million to $8.2 million at March 31, 2022 compared to $24.5 million at December 31, 2021 $274,000 of net PPP loan origination fees were unearned at March 31, 2022 compared to $678,000 at December 31, 2021. $404,000 of net PPP loan origination fees were earned for the three months ended March 31, 2022 compared to $321,000 for the three months ended December 31, 2021. Loans and Credit Quality Total loans held for investment decreased $154,000, or 0.02%, to $1.02 billion at March 31, 2022 compared to $1.02 billion at December 31, 2021. Excluding the net decline of $16.3 million in PPP loans in the current period, loans increased $16.1 million. Average loans for the three months ended March 31, 2022 increased $4.4 million compared to the three months ended December 31, 2021. An increase in consumer and commercial real estate loans was the primary driver in the average balance increase, offset by quicker payoffs in residential, and commercial and industrial loans. The allowance for loan losses was $11.6 million at both March 31, 2022 and December 31, 2021. As a result, the allowance for loan losses to total loans was 1.14% at March 31, 2022 compared to 1.13% at December 31, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.15% at March 31, 2022 compared to 1.16% at December 31, 2021. The lack of change in the allowance for loan losses was primarily due to consistent loan balances between the periods and no significant changes in qualitative factors. Net recoveries for the three months ended March 31, 2022 were $13,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the three months ended March 31, 2021 were $46,000, or 0.02% of average loans on an annualized basis. Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $7.3 million at both March 31, 2022 and December 31, 2021. Nonperforming loans to total loans ratio was 0.72% at March 31, 2022 compared to 0.71% at December 31, 2021. There was one loan in forbearance at March 31, 2022 totaling $128,000, compared to no loans in forbearance at December 31, 2021. Other Intangible Assets decreased $445,000, or 7.6%, to $4.9 million at March 31, 2022 compared to $5.3 million at December 31, 2021 primarily due to amortization expense recognized during the period Accrued Interest Receivable and Other Assets increased $3.7 million, or 28.8% to $16.5 million at March 31, 2022, compared to $12.9 million at December 31, 2021. This change is primarily driven by deferred taxes as a result of the increase in market interest rates conditions and the decrease in the market value of the securities portfolio. Liabilities Total liabilities increased $24.2 million, or 1.9%, to $1.32 billion at March 31, 2022 compared to $1.29 billion at December 31, 2021. Deposits Total deposits increased $23.7 million to $1.25 billion as of March 31, 2022 compared to $1.23 billion at December 31, 2021. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $14.3 million, $7.9 million and $8.1 million, respectively, partially offset by a decrease of $7.5 million in time deposits. Annualized deposit growth rate was 7.7%. Average total deposits decreased $54.6 million, primarily in time deposits, for the three months ended March 31, 2022 compared to the three months ended December 31, 2021. Borrowed Funds Short-term borrowings decreased $47,000 , or 0.1%, to $39.2 million at March 31, 2022, compared to $39.3 million at December 31, 2021. At March 31, 2022 and December 31, 2021, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase. Stockholders’ Equity Stockholders’ equity decreased $11.0 million, or 8.3%, to $122.2 million at March 31, 2022, compared to $133.1 million at December 31, 2021. The Company paid $1.2 million in dividends and repurchased $3.4 million of its common stock as part of its stock repurchase program that was completed on February 15, 2022. In addition, accumulated other comprehensive income decreased $9.7 million primarily due to the effect of rising market interest rates on the Bank’s debt securities. This was partially offset by $3.0 million of net income. Book value per share Book value per common share was $23.69 at March 31, 2022 compared to $25.31 at December 31, 2021, a decrease of $1.62. Tangible book value per common share (Non-GAAP) was $20.86 at March 31, 2022, compared to $22.45 at December 31, 2021, a decrease of $1.59. Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release. About CB Financial Services, Inc. CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary. For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv. Statement About Forward-Looking Statements Statements contained in this press release 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. CB FINANCIAL SERVICES, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Dollars in thousands, except share and per share data) (Unaudited) Selected Financial Condition Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 ASSETS Cash and Due From Banks $ 123,588 $ 119,674 $ 173,523 $ 172,010 $ 230,000 Securities 231,097 224,974 221,351 208,472 142,156 Loans Held for Sale — — 17,407 11,409 — Loans Real Estate: Residential 317,254 320,798 317,373 322,480 339,596 Commercial 427,227 392,124 379,621 360,518 370,118 Construction 54,227 85,028 78,075 85,187 77,714 Commercial and Industrial Commercial and Industrial 59,601 64,487 69,657 70,666 68,551 PPP 8,242 24,523 32,703 49,525 60,380 Consumer 143,422 122,152 112,087 106,404 111,650 Other 10,669 11,684 12,083 12,666 13,688 Total Loans 1,020,642 1,020,796 1,001,599 1,007,446 1,041,697 Allowance for Loan Losses (11,595 ) (11,582 ) (11,581 ) (11,544 ) (12,725 ) Loans, Net 1,009,047 1,009,214 990,018 995,902 1,028,972 Premises and Equipment Held for Sale — — 795 795 — Premises and Equipment, Net 18,349 18,399 18,502 18,682 20,240 Bank-Owned Life Insurance 25,468 25,332 25,190 25,052 24,916 Goodwill 9,732 9,732 9,732 9,732 9,732 Intangible Assets, Net 4,850 5,295 5,740 6,186 7,867 Accrued Interest and Other Assets 16,539 12,859 12,560 13,373 12,938 Total Assets $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 LIABILITIES Deposits Held for Sale $ — $ — $ 102,647 $ 102,557 $ — Deposits Non-Interest Bearing Demand Deposits 400,105 385,775 373,320 368,452 377,137 Interest Bearing Demand Accounts 280,455 272,518 244,004 246,920 280,929 Money Market Accounts 192,929 192,125 190,426 176,824 198,975 Savings Accounts 247,589 239,482 232,679 226,639 246,725 Time Deposits 129,235 136,713 144,727 154,718 180,697 Total Deposits 1,250,313 1,226,613 1,185,156 1,173,553 1,284,463 Short-Term Borrowings 39,219 39,266 42,623 39,054 45,352 Other Borrowings 17,607 17,601 6,000 6,000 6,000 Accrued Interest Payable and Other Liabilities 9,375 8,875 7,405 7,913 7,230 Total Liabilities 1,316,514 1,292,355 1,343,831 1,329,077 1,343,045 STOCKHOLDERS’ EQUITY $ 122,156 $ 133,124 $ 130,987 $ 132,536 $ 133,776 Three Months Ended Selected Operating Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Interest and Dividend Income Loans, Including Fees $ 9,551 $ 9,904 $ 9,718 $ 9,936 $ 10,146 Securities: Taxable 905 866 843 635 646 Tax-Exempt 66 66 71 74 78 Dividends 22 21 19 24 20 Other Interest and Dividend Income 72 106 135 151 98 Total Interest and Dividend Income 10,616 10,963 10,786 10,820 10,988 Interest Expense Deposits 530 636 715 827 947 Short-Term Borrowings 19 26 25 24 23 Other Borrowings 174 70 36 35 41 Total Interest Expense 723 732 776 886 1,011 Net Interest and Dividend Income 9,893 10,231 10,010 9,934 9,977 Provision (Recovery) for Loan Losses — 75 — (1,200 ) — Net Interest and Dividend Income After Provision (Recovery) for Loan Losses 9,893 10,156 10,010 11,134 9,977 Noninterest Income: Service Fees 526 569 602 614 546 Insurance Commissions 1,798 1,618 1,194 1,209 1,595 Other Commissions 89 90 93 173 165 Net Gain on Sales of Loans — 977 49 31 86 Net (Loss) Gain on Securities (7 ) 44 24 11 447 Net Gain on Purchased Tax Credits 14 17 18 17 18 Gain on Sale of Branches — 5,203 — — — Net Loss on Disposal of Fixed Assets (8 ) — — (3 ) — Income from Bank-Owned Life Insurance 136 142 138 136 137 Other Income 65 29 80 31 180 Total Noninterest Income 2,613 8,689 2,198 2,219 3,174 Noninterest Expense: Salaries and Employee Benefits 4,565 5,181 4,787 5,076 4,894 Occupancy 686 619 615 1,024 710 Equipment 210 252 205 311 266 Data Processing 485 488 541 607 518 FDIC Assessment 209 222 293 249 250 PA Shares Tax 240 173 224 225 265 Contracted Services 587 1,133 1,441 750 687 Legal and Professional Fees 152 206 180 419 189 Advertising 116 191 225 193 140 Other Real Estate Owned (Income) (38 ) (30 ) (89 ) (26 ) (38 ) Amortization of Intangible Assets 445 445 446 503 532 Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown of Fixed Assets — 23 2 2,268 — Other 999 1,069 903 945 982 Total Noninterest Expense 8,656 9,972 9,773 13,722 9,395 Income (Loss) Before Income Tax Expense (Benefit) 3,850 8,873 2,435 (369 ) 3,756 Income Tax Expense (Benefit) 803 1,908 452 (146 ) 911 Net Income (Loss) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Three Months Ended Per Common Share Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Dividends Per Common Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Earnings (Loss) Per Common Share - Basic 0.59 1.32 0.37 (0.04 ) 0.52 Earnings (Loss) Per Common Share - Diluted 0.58 1.31 0.37 (0.04 ) 0.52 Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.59 0.53 0.36 0.59 0.46 Weighted Average Common Shares Outstanding - Basic 5,198,194 5,291,795 5,373,032 5,432,234 5,434,374 Weighted Average Common Shares Outstanding - Diluted 5,220,887 5,314,537 5,390,128 5,432,234 5,436,881 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Common Shares Outstanding 5,156,897 5,260,672 5,330,401 5,409,077 5,434,374 Book Value Per Common Share $ 23.69 $ 25.31 $ 24.57 $ 24.50 $ 24.62 Tangible Book Value per Common Share (1) 20.86 22.45 21.67 21.56 21.38 Stockholders’ Equity to Assets 8.5 % 9.3 % 8.9 % 9.1 % 9.1 % Tangible Common Equity to Tangible Assets (1) 7.6 8.4 7.9 8.1 8.0 Three Months Ended Selected Financial Ratios (2) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Return on Average Assets 0.87 % 1.87 % 0.54 % (0.06 ) % 0.81 % Adjusted Return on Average Assets (1) 0.87 0.76 0.53 0.87 0.71 Return on Average Equity 9.50 20.95 5.93 (0.66 ) 8.54 Adjusted Return on Average Equity (1) 9.54 8.55 5.88 9.57 7.48 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 144.48 145.09 146.78 146.82 142.98 Average Equity to Average Assets 9.14 8.93 9.03 9.08 9.48 Net Interest Rate Spread 2.98 2.85 2.77 2.72 2.91 Net Interest Rate Spread (FTE) (1) 2.99 2.86 2.78 2.74 2.92 Net Interest Margin 3.08 2.95 2.88 2.84 3.04 Net Interest Margin (FTE) (1) 3.10 2.96 2.89 2.85 3.05 Net (Recoveries) Charge-offs to Average Loans (0.01 ) 0.03 (0.01 ) (0.01 ) 0.02 Efficiency Ratio 69.21 52.71 80.05 112.91 71.44 Adjusted Efficiency Ratio (1) 65.88 69.73 77.27 80.68 70.06 Asset Quality Ratios 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Allowance for Loan Losses to Total Loans 1.14 % 1.13 % 1.16 % 1.15 % 1.22 % Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1) 1.15 1.16 1.20 1.21 1.30 Allowance for Loan Losses to Nonperforming Loans (3) 158.88 159.40 106.18 74.92 89.29 Allowance for Loan Losses to Noncurrent Loans (4) 218.28 233.37 135.37 90.83 118.08 Delinquent and Nonaccrual Loans to Total Loans (4) (5) 0.79 0.78 0.97 1.37 1.18 Nonperforming Loans to Total Loans (3) 0.72 0.71 1.09 1.53 1.37 Noncurrent Loans to Total Loans (4) 0.52 0.49 0.85 1.26 1.03 Nonperforming Assets to Total Assets (6) 0.51 0.51 0.74 1.07 0.98 Capital Ratios (7) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.99 % 11.95 % 11.53 % 11.67 % 11.85 % Tier 1 Capital (to Risk Weighted Assets) 11.99 11.95 11.53 11.67 11.85 Total Capital (to Risk Weighted Assets) 13.20 13.18 12.77 12.92 13.10 Tier 1 Leverage (to Adjusted Total Assets) 8.19 7.76 7.38 7.23 7.87 (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (2) Interim period ratios are calculated on an annualized basis. (3) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (4) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (5) Delinquent loans consist of accruing loans that are 30 days or more past due. (6) Nonperforming assets consist of nonperforming loans and other real estate owned. (7) Capital ratios are for Community Bank only. Certain items previously reported may have been reclassified to conform with the current reporting period’s format. AVERAGE BALANCES AND YIELDS Three Months Ended March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 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) $ 1,009,210 $ 9,573 3.85 % $ 1,004,827 $ 9,927 3.92 % $ 1,004,474 $ 9,740 3.85 % $ 1,016,868 $ 9,959 3.93 % $ 1,031,853 $ 10,168 4.00 % Debt Securities Taxable 215,906 905 1.68 205,328 866 1.69 197,763 843 1.71 124,685 635 2.04 122,883 646 2.10 Exempt From Federal Tax 10,195 84 3.30 10,477 84 3.21 11,647 90 3.09 12,276 94 3.06 12,943 96 2.97 Equity Securities 2,693 22 3.27 2,693 21 3.12 2,655 19 2.86 2,649 24 3.62 2,632 20 3.04 Interest Bearing Deposits at Banks 59,296 22 0.15 150,102 19 0.05 160,935 74 0.18 242,348 89 0.15 157,962 36 0.09 Other Interest-Earning Assets 3,483 50 5.82 3,475 87 9.93 3,512 61 6.89 4,044 62 6.15 3,909 62 6.43 Total Interest-Earning Assets 1,300,783 10,656 3.32 1,376,902 11,004 3.17 1,380,986 10,827 3.11 1,402,870 10,863 3.11 1,332,182 11,028 3.36 Noninterest-Earning Assets 122,288 100,607 88,291 82,794 92,550 Total Assets $ 1,423,071 $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 Liabilities and Stockholders' Equity Interest-Bearing Liabilities: Interest-Bearing Demand Deposits (3) $ 276,603 48 0.07 % $ 278,546 51 0.07 % $ 275,411 48 0.07 $ 275,752 55 0.08 $ 259,065 77 0.12 % Savings (3) 243,786 19 0.03 252,387 20 0.03 251,801 21 0.03 247,238 25 0.04 239,850 32 0.05 Money Market (3) 192,425 41 0.09 209,572 57 0.11 198,167 55 0.11 199,652 71 0.14 197,395 98 0.20 Time Deposits (3) 132,015 422 1.30 154,342 508 1.31 168,654 591 1.39 177,506 676 1.53 187,114 740 1.60 Total Interest-Bearing Deposits (3) 844,829 530 0.25 894,847 636 0.28 894,033 715 0.32 900,148 827 0.37 883,424 947 0.43 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 37,884 19 0.20 44,709 26 0.23 40,818 25 0.24 49,325 24 0.20 41,094 23 0.23 Other Borrowings 17,604 174 4.01 9,474 70 2.93 6,000 36 2.38 6,000 35 2.34 7,200 41 2.31 Total Interest-Bearing Liabilities 900,317 723 0.33 949,030 732 0.31 940,851 776 0.33 955,473 886 0.37 931,718 1,011 0.44 Noninterest-Bearing Demand Deposits 384,188 388,787 387,746 387,317 349,108 Other Liabilities 8,554 7,800 8,019 7,999 8,869 Total Liabilities 1,293,059 1,345,617 1,336,616 1,350,789 1,289,695 Stockholders' Equity 130,012 131,892 132,661 134,875 135,037 Total Liabilities and Stockholders' Equity $ 1,423,071 $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 Net Interest Income (FTE) (Non-GAAP) (4) 9,933 10,272 10,051 9,977 10,017 Net Interest-Earning Assets (5) 400,466 427,872 440,135 447,397 400,464 Net Interest Rate Spread (FTE) (Non-GAAP) (4) (6) 2.99 % 2.86 % 2.78 2.74 2.92 % Net Interest Margin (FTE) (Non-GAAP) (4)(7) 3.10 2.96 2.89 2.85 3.05 PPP Loans 14,673 445 12.30 29,067 391 5.34 40,313 484 4.76 57,661 636 4.42 56,945 676 4.81 (1) Annualized based on three months ended results. (2) Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale. (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 Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (7) Net interest margin represents annualized net interest income divided by average total interest-earning assets. 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 Press Release 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. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (Loss) (GAAP) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Adjustments Loss (Gain) on Securities 7 (44 ) (24 ) (11 ) (447 ) Gain on Sale of Branches — (5,203 ) — — — Loss on Disposal of Fixed Assets 8 — — 3 — Tax effect (3 ) 1,102 5 2 94 Non-Cash Charges: Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown on Fixed Assets — 23 2 2,268 — Tax Effect — — — — — Adjusted Net Income (Non-GAAP) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,220,887 5,314,537 5,390,128 5,432,234 5,436,881 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.58 $ 1.31 $ 0.37 $ (0.04 ) $ 0.52 Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.59 $ 0.53 $ 0.36 $ 0.59 $ 0.46 Net Income (Loss) (GAAP) (Numerator) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Assets (Denominator) 1,423,071 1,477,509 1,469,277 1,485,664 1,424,732 Return on Average Assets (GAAP) 0.87 % 1.87 % 0.54 % (0.06 ) % 0.81 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Assets (Denominator) 1,423,071 1,477,509 1,469,277 1,485,664 1,424,732 Adjusted Return on Average Assets (Non-GAAP) 0.87 % 0.76 % 0.53 % 0.87 % 0.71 % Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Net Income (Loss) (GAAP) (Numerator) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) 130,012 131,892 132,661 134,875 135,037 Return on Average Equity (GAAP) 9.50 % 20.95 % 5.93 % (0.66 ) % 8.54 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) 130,012 131,892 132,661 134,875 135,037 Adjusted Return on Average Equity (Non-GAAP) 9.54 % 8.55 % 5.88 % 9.57 % 7.48 % Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company’s total value. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Assets (GAAP) $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 Goodwill and Intangible Assets, Net (14,582 ) (15,027 ) (15,472 ) (15,918 ) (17,599 ) Tangible Assets (Non-GAAP) (Numerator) $ 1,424,088 $ 1,410,452 $ 1,459,346 $ 1,445,695 $ 1,459,222 Stockholders' Equity (GAAP) $ 122,156 $ 133,124 $ 130,987 $ 132,536 $ 133,776 Goodwill and Intangible Assets, Net (14,582 ) (15,027 ) (15,472 ) (15,918 ) (17,599 ) Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator) $ 107,574 $ 118,097 $ 115,515 $ 116,618 $ 116,177 Stockholders’ Equity to Assets (GAAP) 8.5 % 9.3 % 8.9 % 9.1 % 9.1 % Tangible Common Equity to Tangible Assets (Non-GAAP) 7.6 % 8.4 % 7.9 % 8.1 % 8.0 % Common Shares Outstanding (Denominator) 5,156,897 5,260,672 5,330,401 5,409,077 5,434,374 Book Value per Common Share (GAAP) $ 23.69 $ 25.31 $ 24.57 $ 24.50 $ 24.62 Tangible Book Value per Common Share (Non-GAAP) $ 20.86 $ 22.45 $ 21.67 $ 21.56 $ 21.38 Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent (“FTE”) basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated: Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Interest Income (GAAP) $ 10,616 $ 10,963 $ 10,786 $ 10,820 $ 10,988 Adjustment to FTE Basis 40 41 41 43 40 Interest Income (FTE) (Non-GAAP) 10,656 11,004 10,827 10,863 11,028 Interest Expense (GAAP) 723 732 776 886 1,011 Net Interest Income (FTE) (Non-GAAP) $ 9,933 $ 10,272 $ 10,051 $ 9,977 $ 10,017 Net Interest Rate Spread (GAAP) 2.98 % 2.85 % 2.77 % 2.72 % 2.91 % Adjustment to FTE Basis 0.01 0.01 0.01 0.02 0.01 Net Interest Rate Spread (FTE) (Non-GAAP) 2.99 2.86 2.78 2.74 2.92 Net Interest Margin (GAAP) 3.08 % 2.95 % 2.88 % 2.84 % 3.04 % Adjustment to FTE Basis 0.02 0.01 0.01 0.01 0.01 Net Interest Margin (FTE) (Non-GAAP) 3.10 2.96 2.89 2.85 3.05 Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Noninterest Expense (GAAP) $ 8,656 $ 9,972 $ 9,773 $ 13,722 $ 9,395 Net Interest and Dividend Income (GAAP) 9,893 10,231 10,010 9,934 9,977 Noninterest Income (GAAP) 2,613 8,689 2,198 2,219 3,174 Operating Revenue (GAAP) 12,506 18,920 12,208 12,153 13,151 Efficiency Ratio (GAAP) 69.21 % 52.71 % 80.05 % 112.91 % 71.44 % Noninterest Expense (GAAP) $ 8,656 $ 9,972 $ 9,773 $ 13,722 $ 9,395 Less: Other Real Estate Owned (Income) (38 ) (30 ) (89 ) (26 ) (38 ) Amortization of Intangible Assets 445 445 446 503 532 Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown on Fixed Assets — 23 2 2,268 — Adjusted Noninterest Expense (Non-GAAP) $ 8,249 $ 9,534 $ 9,414 $ 9,799 $ 8,901 Net Interest and Dividend Income (GAAP) 9,893 10,231 10,010 9,934 9,977 Noninterest Income (GAAP) 2,613 8,689 2,198 2,219 3,174 Less: Net Gain on Securities (7 ) 44 24 11 447 Gain on Sale of Branches — 5,203 — — — Net Loss on Disposal of Fixed Assets (8 ) — — (3 ) — Adjusted Noninterest Income (Non-GAAP) 2,628 3,442 2,174 2,211 2,727 Adjusted Operating Revenue (Non-GAAP) 12,521 13,673 12,184 12,145 12,704 Adjusted Efficiency Ratio (Non-GAAP) 65.88 % 69.73 % 77.27 % 80.68 % 70.06 % Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Allowance for Loan Losses $ 11,595 $ 11,582 $ 11,581 $ 11,544 $ 12,725 Total Loans 1,020,642 $ 1,020,796 1,001,599 $ 1,007,446 $ 1,041,697 PPP Loans (8,242 ) (24,523 ) (32,703 ) (49,525 ) (60,380 ) Total Loans, Excluding PPP Loans (Non-GAAP) $ 1,012,400 $ 996,273 $ 968,896 $ 957,921 $ 981,317 Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) 1.15 % 1.16 % 1.20 % 1.21 % 1.30 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006072/en/Contacts Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 Investor Relations: Jeremy Hellman, Vice President The Equity Group Inc. Phone: (212) 836-9626 Email: jhellman@equityny.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CB Financial Services, Inc. Announces First Quarter 2022 Financial Results and Declares Quarterly Cash Dividend By: CB Financial Services, Inc. via Business Wire April 28, 2022 at 16:30 PM EDT CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc. (“EU”), a wholly-owned insurance subsidiary of the Bank, today announced its first quarter 2022 financial results. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except per share data) (Unaudited) Net Income (Loss) (GAAP) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Non-Recurring Items (Non-GAAP) (1) 12 (4,122 ) (17 ) 3,440 (353 ) Adjusted Net Income (Non-GAAP) (1) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.58 $ 1.31 $ 0.37 $ (0.04 ) $ 0.52 Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1) $ 0.59 $ 0.53 $ 0.36 $ 0.59 $ 0.46 (1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of net income (loss) and adjusted earnings per common share - diluted in this Press Release. 2022 First Quarter Financial Highlights (Comparisons to three months ended March 31, 2021 unless otherwise noted) Net income was $3.0 million, compared to $2.8 million, largely due to the completion of the Company’s optimization program in 2021, which resulted in a reduction of noninterest expense. Adjusted net income (non-GAAP) was $3.1 million, compared to $2.5 million. Earnings per diluted common share (EPS) increased to $0.58 from $0.52. Adjusted earnings per common share - diluted (non-GAAP) was $0.59, compared to $0.46. Return on average assets (annualized) of 0.87%, compared to 0.81%. Adjusted return on average assets (annualized) (non-GAAP) of 0.87%, compared to 0.71%. Return on average equity (annualized) of 9.50%, compared to 8.54%. Adjusted return on average equity (annualized) (non-GAAP) of 9.54%, compared to 7.48%. Net interest margin (NIM) improved quarter over quarter to 3.08% from 2.95% for the three months ended December 31, 2021. NIM was 3.04% for the prior year period. Net interest and dividend income was $9.9 million, compared to $10.0 million. Noninterest income decreased to $2.6 million, compared to $3.2 million. The most significant changes in noninterest income were a $454,000 reduction in securities gains offset by an increase of $203,000 in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received, partially offset by a decrease in commercial and personal insurance commissions. (Amounts at March 31, 2022; comparisons to December 31, 2021, unless otherwise noted) Total loans, including Payroll Protection Program (“PPP”) loans, were $1.02 billion, a decrease of $154,000. Total loans held for investment, excluding PPP loans, increased $16.1 million, or 6.5% annualized, to $1.01 billion compared to $996.3 million at December 31, 2021 and included 69.7% and 3.6% annualized growth in consumer and commercial real estate loans, respectively. Nonperforming loans to total loans was 0.72%, a increase of 1 bps, compared to 0.71%. Total deposits were $1.25 billion, an increase of $23.7 million, compared to $1.23 billion. Total assets increased to $1.44 billion, compared to $1.43 billion. Book value per share was $23.69, compared to $24.62 at March 31, 2021 and $25.31 at December 31, 2021. Tangible book value per share (Non-GAAP) decreased to $20.86, compared to $21.38 at March 31, 2021 and $22.45 at December 31, 2021. Management Commentary President and CEO John H. Montgomery stated, “Our first quarter benefited from the combination of modest loan growth and improved efficiency levels which resulted in solid bottom-line income growth. We were pleased to see our loans, excluding PPP loans, grow 1.64% in the current quarter, or 6.5% annualized, led by commercial real estate and indirect auto. Our indirect auto loan business was fueled by the investments we have made in process efficiencies, which led directly to improved pull-through rates. We coupled that growth with an improved Efficiency Ratio, which declined 420 basis points from last year’s first quarter to 68.6% and is the result of the optimization program we largely completed last year. This improvement in our Efficiency Ratio is an important foundation supporting our goal of becoming a high performing bank.” Mr. Montgomery continued, “We furthered our commitment to CB shareholders as we completed a $7.5 million share repurchase program in February and have announced a new $10.0 million program, in addition to our regular quarterly dividend. We remain well-capitalized with the ability to support growth along with these shareholder-friendly actions. During the quarter, the Bank invested in sales leadership to accelerate growth. We recently hired Bruce Sharp as our Chief Commercial Banking Officer and Alan Bicker as Chief Consumer Banking Officer. In addition, Benjamin Brown was recently hired as Director of Client Experience and Innovation. All three of these gentlemen possess a wealth of experience and know our markets well. I am excited to have Bruce, Alan and Ben on board as we look to accelerated growth and leverage our work in efficiency and process optimization. Our regional economic activity remains strong and is bolstered by a number of top educational and medical institutions in addition to a strong technology presence, providing an excellent counter-balance to regular economic cycles. In addition, our region is a major supplier of natural gas and we are seeing some benefit from the recent surge in commodity prices.” Dividend Information The Company’s Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about May 31, 2022, to stockholders of record as of the close of business on May 20, 2022. Stock Repurchase Program On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company’s outstanding common stock. The program was effective as of June 14, 2021 and is authorized through June 13, 2022. On February 15, 2022, the Company completed the program, under which a total of 308,996 shares were repurchased at an average price of $24.27 per share for a total of approximately $7.5 million. On April 21, 2022, CB announced a program to repurchase up to $10.0 million of the Company’s outstanding shares of common stock. Based on the Company’s closing stock price on April 19, 2022, the repurchase program, if fully completed, would encompass 433,643 shares, or approximately 8.4% the shares currently outstanding. 2022 First Quarter Financial Review Net Interest and Dividend Income Net interest and dividend income decreased $84,000, or 0.8%, to $9.9 million for the three months ended March 31, 2022 compared to $10.0 million for the three months ended March 31, 2021. Net interest margin (FTE) (Non-GAAP) increased 5 basis points (“bps”) to 3.10% for the three months ended March 31, 2022 compared to 3.05% for the three months ended March 31, 2021. Net interest margin (GAAP) increased to 3.08% for the three months ended March 31, 2022 compared to 3.04% for the three months ended March 31, 2021. CB has controlled its deposit cost structure as deposit balances increased and benefited from non-renewal or repricing of higher-cost time deposits. Interest and dividend income decreased $372,000, or 3.4%, to $10.6 million for the three months ended March 31, 2022 compared to $11.0 million for the three months ended March 31, 2021. Interest income on loans decreased $595,000, or 5.9%, to $9.6 million for the three months ended March 31, 2022 compared to $10.1 million for the three months ended March 31, 2021. The average balance of loans decreased $22.6 million and the average yield decreased 15 bps to 3.85% compared to the three months ended March 31, 2021. Interest and fee income on PPP loans was $445,000 for the three months ended March 31, 2022 and contributed 13 bps to loan yield, compared to $676,000 for the three months ended March 31, 2021, which contributed 5 bps to loan yield. The impact of the accretion of the credit mark on acquired loan portfolios was $56,000 for the three months ended March 31, 2022 compared to $138,000 for the three months ended March 31, 2021, or 2 bps in the current period compared to 6 bps in the prior period. Interest income on taxable investment securities increased $259,000, or 40.1%, to $905,000 for the three months ended March 31, 2022 compared to $646,000 for the three months ended March 31, 2021 driven by a $93.0 million increase in average balance partially offset by a 42 bps decrease in average yield. Interest expense decreased $288,000, or 28.5%, to $723,000 for the three months ended March 31, 2022 compared to $1.0 million for the three months ended March 31, 2021. Interest expense on deposits decreased $417,000, or 44.0%, to $530,000 for the three months ended March 31, 2022 compared to $947,000 for the three months ended March 31, 2021. While average interest-earning deposit balances decreased $38.6 million compared to the three months ended March 31, 2021, controlling the deposit cost structure as deposit balances increased combined with non-renewal or repricing of higher-cost time deposit resulted in a 18 bp, or 41.4%, decrease in average cost compared to the three months ended March 31, 2021. The average balance of time deposits and the related average cost decreased $55.1 million and 30 bps, respectively. Provision for Loan Losses There was no provision for loan losses for either the three months ended March 31, 2022 or the three months ended March 31, 2021. The provision for loan losses remaining constant was primarily due to consistent loan balances between the periods and no significant changes in qualitative factors. Noninterest income Noninterest income decreased $561,000, or 17.7%, to $2.6 million for the three months ended March 31, 2022, compared to $3.2 million for the three months ended March 31, 2021. The decrease was largely due to a $454,000 reduction in securities gains, partially offset by a $203,000 improvement in insurance commissions. The increase in insurance commissions was primarily driven by contingency income of $114,000 which resulted from the higher than lock-in amounts received and commercial insurance commissions, partially offset by a decrease in personal insurance commissions. In addition, net gain on sale of loans decreased $86,000 as there were no loans sold for the three months ended March 31, 2022. Noninterest Expense Noninterest expense decreased $739,000, or 7.9%, to $8.7 million for the three months ended March 31, 2022 compared to $9.4 million for the three months ended March 31, 2021, primarily due to the implementation of branch optimization initiatives begun in 2020 and completed during 2021 which established a lower expense base. Offsetting the lower base in the first quarter were investment in executive leadership tasked with driving growth initiatives. Contracted services decreased $100,000 to $587,000 for the three months ended March 31, 2022 compared to $687,000 for the three months ended March 31, 2021. This was a result of the previously mentioned branch optimization initiatives completed in the prior year. Statement of Financial Condition Review Assets Total assets increased $13.2 million, or 0.9%, to $1.44 billion at March 31, 2022, compared to $1.43 billion at December 31, 2021. Cash and due from banks increased $3.9 million, or 3.3%, to $123.6 million at March 31, 2022, compared to $119.7 million at December 31, 2021. The change is primarily due to an increase in deposits as further described below in the Liabilities section. The increase was partially offset by purchases of securities detailed in the below Securities section. Securities increased $6.1 million, or 2.7%, to $231.1 million at March 31, 2022, compared to $225.0 million at December 31, 2021. Current period activity included $26.8 million of purchases, and $8.3 million of paydowns. The purchases were made to earn a higher yield on excess cash. In addition, there was a $12.4 million decrease in the market value of the debt securities portfolio, primarily due to the increase in market interest rates and a $7,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks. Payroll Protection Program (“PPP”) Update PPP loans decreased $16.3 million to $8.2 million at March 31, 2022 compared to $24.5 million at December 31, 2021 $274,000 of net PPP loan origination fees were unearned at March 31, 2022 compared to $678,000 at December 31, 2021. $404,000 of net PPP loan origination fees were earned for the three months ended March 31, 2022 compared to $321,000 for the three months ended December 31, 2021. Loans and Credit Quality Total loans held for investment decreased $154,000, or 0.02%, to $1.02 billion at March 31, 2022 compared to $1.02 billion at December 31, 2021. Excluding the net decline of $16.3 million in PPP loans in the current period, loans increased $16.1 million. Average loans for the three months ended March 31, 2022 increased $4.4 million compared to the three months ended December 31, 2021. An increase in consumer and commercial real estate loans was the primary driver in the average balance increase, offset by quicker payoffs in residential, and commercial and industrial loans. The allowance for loan losses was $11.6 million at both March 31, 2022 and December 31, 2021. As a result, the allowance for loan losses to total loans was 1.14% at March 31, 2022 compared to 1.13% at December 31, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.15% at March 31, 2022 compared to 1.16% at December 31, 2021. The lack of change in the allowance for loan losses was primarily due to consistent loan balances between the periods and no significant changes in qualitative factors. Net recoveries for the three months ended March 31, 2022 were $13,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the three months ended March 31, 2021 were $46,000, or 0.02% of average loans on an annualized basis. Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $7.3 million at both March 31, 2022 and December 31, 2021. Nonperforming loans to total loans ratio was 0.72% at March 31, 2022 compared to 0.71% at December 31, 2021. There was one loan in forbearance at March 31, 2022 totaling $128,000, compared to no loans in forbearance at December 31, 2021. Other Intangible Assets decreased $445,000, or 7.6%, to $4.9 million at March 31, 2022 compared to $5.3 million at December 31, 2021 primarily due to amortization expense recognized during the period Accrued Interest Receivable and Other Assets increased $3.7 million, or 28.8% to $16.5 million at March 31, 2022, compared to $12.9 million at December 31, 2021. This change is primarily driven by deferred taxes as a result of the increase in market interest rates conditions and the decrease in the market value of the securities portfolio. Liabilities Total liabilities increased $24.2 million, or 1.9%, to $1.32 billion at March 31, 2022 compared to $1.29 billion at December 31, 2021. Deposits Total deposits increased $23.7 million to $1.25 billion as of March 31, 2022 compared to $1.23 billion at December 31, 2021. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $14.3 million, $7.9 million and $8.1 million, respectively, partially offset by a decrease of $7.5 million in time deposits. Annualized deposit growth rate was 7.7%. Average total deposits decreased $54.6 million, primarily in time deposits, for the three months ended March 31, 2022 compared to the three months ended December 31, 2021. Borrowed Funds Short-term borrowings decreased $47,000 , or 0.1%, to $39.2 million at March 31, 2022, compared to $39.3 million at December 31, 2021. At March 31, 2022 and December 31, 2021, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase. Stockholders’ Equity Stockholders’ equity decreased $11.0 million, or 8.3%, to $122.2 million at March 31, 2022, compared to $133.1 million at December 31, 2021. The Company paid $1.2 million in dividends and repurchased $3.4 million of its common stock as part of its stock repurchase program that was completed on February 15, 2022. In addition, accumulated other comprehensive income decreased $9.7 million primarily due to the effect of rising market interest rates on the Bank’s debt securities. This was partially offset by $3.0 million of net income. Book value per share Book value per common share was $23.69 at March 31, 2022 compared to $25.31 at December 31, 2021, a decrease of $1.62. Tangible book value per common share (Non-GAAP) was $20.86 at March 31, 2022, compared to $22.45 at December 31, 2021, a decrease of $1.59. Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release. About CB Financial Services, Inc. CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary. For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv. Statement About Forward-Looking Statements Statements contained in this press release 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. CB FINANCIAL SERVICES, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Dollars in thousands, except share and per share data) (Unaudited) Selected Financial Condition Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 ASSETS Cash and Due From Banks $ 123,588 $ 119,674 $ 173,523 $ 172,010 $ 230,000 Securities 231,097 224,974 221,351 208,472 142,156 Loans Held for Sale — — 17,407 11,409 — Loans Real Estate: Residential 317,254 320,798 317,373 322,480 339,596 Commercial 427,227 392,124 379,621 360,518 370,118 Construction 54,227 85,028 78,075 85,187 77,714 Commercial and Industrial Commercial and Industrial 59,601 64,487 69,657 70,666 68,551 PPP 8,242 24,523 32,703 49,525 60,380 Consumer 143,422 122,152 112,087 106,404 111,650 Other 10,669 11,684 12,083 12,666 13,688 Total Loans 1,020,642 1,020,796 1,001,599 1,007,446 1,041,697 Allowance for Loan Losses (11,595 ) (11,582 ) (11,581 ) (11,544 ) (12,725 ) Loans, Net 1,009,047 1,009,214 990,018 995,902 1,028,972 Premises and Equipment Held for Sale — — 795 795 — Premises and Equipment, Net 18,349 18,399 18,502 18,682 20,240 Bank-Owned Life Insurance 25,468 25,332 25,190 25,052 24,916 Goodwill 9,732 9,732 9,732 9,732 9,732 Intangible Assets, Net 4,850 5,295 5,740 6,186 7,867 Accrued Interest and Other Assets 16,539 12,859 12,560 13,373 12,938 Total Assets $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 LIABILITIES Deposits Held for Sale $ — $ — $ 102,647 $ 102,557 $ — Deposits Non-Interest Bearing Demand Deposits 400,105 385,775 373,320 368,452 377,137 Interest Bearing Demand Accounts 280,455 272,518 244,004 246,920 280,929 Money Market Accounts 192,929 192,125 190,426 176,824 198,975 Savings Accounts 247,589 239,482 232,679 226,639 246,725 Time Deposits 129,235 136,713 144,727 154,718 180,697 Total Deposits 1,250,313 1,226,613 1,185,156 1,173,553 1,284,463 Short-Term Borrowings 39,219 39,266 42,623 39,054 45,352 Other Borrowings 17,607 17,601 6,000 6,000 6,000 Accrued Interest Payable and Other Liabilities 9,375 8,875 7,405 7,913 7,230 Total Liabilities 1,316,514 1,292,355 1,343,831 1,329,077 1,343,045 STOCKHOLDERS’ EQUITY $ 122,156 $ 133,124 $ 130,987 $ 132,536 $ 133,776 Three Months Ended Selected Operating Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Interest and Dividend Income Loans, Including Fees $ 9,551 $ 9,904 $ 9,718 $ 9,936 $ 10,146 Securities: Taxable 905 866 843 635 646 Tax-Exempt 66 66 71 74 78 Dividends 22 21 19 24 20 Other Interest and Dividend Income 72 106 135 151 98 Total Interest and Dividend Income 10,616 10,963 10,786 10,820 10,988 Interest Expense Deposits 530 636 715 827 947 Short-Term Borrowings 19 26 25 24 23 Other Borrowings 174 70 36 35 41 Total Interest Expense 723 732 776 886 1,011 Net Interest and Dividend Income 9,893 10,231 10,010 9,934 9,977 Provision (Recovery) for Loan Losses — 75 — (1,200 ) — Net Interest and Dividend Income After Provision (Recovery) for Loan Losses 9,893 10,156 10,010 11,134 9,977 Noninterest Income: Service Fees 526 569 602 614 546 Insurance Commissions 1,798 1,618 1,194 1,209 1,595 Other Commissions 89 90 93 173 165 Net Gain on Sales of Loans — 977 49 31 86 Net (Loss) Gain on Securities (7 ) 44 24 11 447 Net Gain on Purchased Tax Credits 14 17 18 17 18 Gain on Sale of Branches — 5,203 — — — Net Loss on Disposal of Fixed Assets (8 ) — — (3 ) — Income from Bank-Owned Life Insurance 136 142 138 136 137 Other Income 65 29 80 31 180 Total Noninterest Income 2,613 8,689 2,198 2,219 3,174 Noninterest Expense: Salaries and Employee Benefits 4,565 5,181 4,787 5,076 4,894 Occupancy 686 619 615 1,024 710 Equipment 210 252 205 311 266 Data Processing 485 488 541 607 518 FDIC Assessment 209 222 293 249 250 PA Shares Tax 240 173 224 225 265 Contracted Services 587 1,133 1,441 750 687 Legal and Professional Fees 152 206 180 419 189 Advertising 116 191 225 193 140 Other Real Estate Owned (Income) (38 ) (30 ) (89 ) (26 ) (38 ) Amortization of Intangible Assets 445 445 446 503 532 Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown of Fixed Assets — 23 2 2,268 — Other 999 1,069 903 945 982 Total Noninterest Expense 8,656 9,972 9,773 13,722 9,395 Income (Loss) Before Income Tax Expense (Benefit) 3,850 8,873 2,435 (369 ) 3,756 Income Tax Expense (Benefit) 803 1,908 452 (146 ) 911 Net Income (Loss) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Three Months Ended Per Common Share Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Dividends Per Common Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Earnings (Loss) Per Common Share - Basic 0.59 1.32 0.37 (0.04 ) 0.52 Earnings (Loss) Per Common Share - Diluted 0.58 1.31 0.37 (0.04 ) 0.52 Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.59 0.53 0.36 0.59 0.46 Weighted Average Common Shares Outstanding - Basic 5,198,194 5,291,795 5,373,032 5,432,234 5,434,374 Weighted Average Common Shares Outstanding - Diluted 5,220,887 5,314,537 5,390,128 5,432,234 5,436,881 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Common Shares Outstanding 5,156,897 5,260,672 5,330,401 5,409,077 5,434,374 Book Value Per Common Share $ 23.69 $ 25.31 $ 24.57 $ 24.50 $ 24.62 Tangible Book Value per Common Share (1) 20.86 22.45 21.67 21.56 21.38 Stockholders’ Equity to Assets 8.5 % 9.3 % 8.9 % 9.1 % 9.1 % Tangible Common Equity to Tangible Assets (1) 7.6 8.4 7.9 8.1 8.0 Three Months Ended Selected Financial Ratios (2) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Return on Average Assets 0.87 % 1.87 % 0.54 % (0.06 ) % 0.81 % Adjusted Return on Average Assets (1) 0.87 0.76 0.53 0.87 0.71 Return on Average Equity 9.50 20.95 5.93 (0.66 ) 8.54 Adjusted Return on Average Equity (1) 9.54 8.55 5.88 9.57 7.48 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 144.48 145.09 146.78 146.82 142.98 Average Equity to Average Assets 9.14 8.93 9.03 9.08 9.48 Net Interest Rate Spread 2.98 2.85 2.77 2.72 2.91 Net Interest Rate Spread (FTE) (1) 2.99 2.86 2.78 2.74 2.92 Net Interest Margin 3.08 2.95 2.88 2.84 3.04 Net Interest Margin (FTE) (1) 3.10 2.96 2.89 2.85 3.05 Net (Recoveries) Charge-offs to Average Loans (0.01 ) 0.03 (0.01 ) (0.01 ) 0.02 Efficiency Ratio 69.21 52.71 80.05 112.91 71.44 Adjusted Efficiency Ratio (1) 65.88 69.73 77.27 80.68 70.06 Asset Quality Ratios 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Allowance for Loan Losses to Total Loans 1.14 % 1.13 % 1.16 % 1.15 % 1.22 % Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1) 1.15 1.16 1.20 1.21 1.30 Allowance for Loan Losses to Nonperforming Loans (3) 158.88 159.40 106.18 74.92 89.29 Allowance for Loan Losses to Noncurrent Loans (4) 218.28 233.37 135.37 90.83 118.08 Delinquent and Nonaccrual Loans to Total Loans (4) (5) 0.79 0.78 0.97 1.37 1.18 Nonperforming Loans to Total Loans (3) 0.72 0.71 1.09 1.53 1.37 Noncurrent Loans to Total Loans (4) 0.52 0.49 0.85 1.26 1.03 Nonperforming Assets to Total Assets (6) 0.51 0.51 0.74 1.07 0.98 Capital Ratios (7) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.99 % 11.95 % 11.53 % 11.67 % 11.85 % Tier 1 Capital (to Risk Weighted Assets) 11.99 11.95 11.53 11.67 11.85 Total Capital (to Risk Weighted Assets) 13.20 13.18 12.77 12.92 13.10 Tier 1 Leverage (to Adjusted Total Assets) 8.19 7.76 7.38 7.23 7.87 (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (2) Interim period ratios are calculated on an annualized basis. (3) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (4) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (5) Delinquent loans consist of accruing loans that are 30 days or more past due. (6) Nonperforming assets consist of nonperforming loans and other real estate owned. (7) Capital ratios are for Community Bank only. Certain items previously reported may have been reclassified to conform with the current reporting period’s format. AVERAGE BALANCES AND YIELDS Three Months Ended March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 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) $ 1,009,210 $ 9,573 3.85 % $ 1,004,827 $ 9,927 3.92 % $ 1,004,474 $ 9,740 3.85 % $ 1,016,868 $ 9,959 3.93 % $ 1,031,853 $ 10,168 4.00 % Debt Securities Taxable 215,906 905 1.68 205,328 866 1.69 197,763 843 1.71 124,685 635 2.04 122,883 646 2.10 Exempt From Federal Tax 10,195 84 3.30 10,477 84 3.21 11,647 90 3.09 12,276 94 3.06 12,943 96 2.97 Equity Securities 2,693 22 3.27 2,693 21 3.12 2,655 19 2.86 2,649 24 3.62 2,632 20 3.04 Interest Bearing Deposits at Banks 59,296 22 0.15 150,102 19 0.05 160,935 74 0.18 242,348 89 0.15 157,962 36 0.09 Other Interest-Earning Assets 3,483 50 5.82 3,475 87 9.93 3,512 61 6.89 4,044 62 6.15 3,909 62 6.43 Total Interest-Earning Assets 1,300,783 10,656 3.32 1,376,902 11,004 3.17 1,380,986 10,827 3.11 1,402,870 10,863 3.11 1,332,182 11,028 3.36 Noninterest-Earning Assets 122,288 100,607 88,291 82,794 92,550 Total Assets $ 1,423,071 $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 Liabilities and Stockholders' Equity Interest-Bearing Liabilities: Interest-Bearing Demand Deposits (3) $ 276,603 48 0.07 % $ 278,546 51 0.07 % $ 275,411 48 0.07 $ 275,752 55 0.08 $ 259,065 77 0.12 % Savings (3) 243,786 19 0.03 252,387 20 0.03 251,801 21 0.03 247,238 25 0.04 239,850 32 0.05 Money Market (3) 192,425 41 0.09 209,572 57 0.11 198,167 55 0.11 199,652 71 0.14 197,395 98 0.20 Time Deposits (3) 132,015 422 1.30 154,342 508 1.31 168,654 591 1.39 177,506 676 1.53 187,114 740 1.60 Total Interest-Bearing Deposits (3) 844,829 530 0.25 894,847 636 0.28 894,033 715 0.32 900,148 827 0.37 883,424 947 0.43 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 37,884 19 0.20 44,709 26 0.23 40,818 25 0.24 49,325 24 0.20 41,094 23 0.23 Other Borrowings 17,604 174 4.01 9,474 70 2.93 6,000 36 2.38 6,000 35 2.34 7,200 41 2.31 Total Interest-Bearing Liabilities 900,317 723 0.33 949,030 732 0.31 940,851 776 0.33 955,473 886 0.37 931,718 1,011 0.44 Noninterest-Bearing Demand Deposits 384,188 388,787 387,746 387,317 349,108 Other Liabilities 8,554 7,800 8,019 7,999 8,869 Total Liabilities 1,293,059 1,345,617 1,336,616 1,350,789 1,289,695 Stockholders' Equity 130,012 131,892 132,661 134,875 135,037 Total Liabilities and Stockholders' Equity $ 1,423,071 $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 Net Interest Income (FTE) (Non-GAAP) (4) 9,933 10,272 10,051 9,977 10,017 Net Interest-Earning Assets (5) 400,466 427,872 440,135 447,397 400,464 Net Interest Rate Spread (FTE) (Non-GAAP) (4) (6) 2.99 % 2.86 % 2.78 2.74 2.92 % Net Interest Margin (FTE) (Non-GAAP) (4)(7) 3.10 2.96 2.89 2.85 3.05 PPP Loans 14,673 445 12.30 29,067 391 5.34 40,313 484 4.76 57,661 636 4.42 56,945 676 4.81 (1) Annualized based on three months ended results. (2) Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale. (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 Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (7) Net interest margin represents annualized net interest income divided by average total interest-earning assets. 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 Press Release 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. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (Loss) (GAAP) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Adjustments Loss (Gain) on Securities 7 (44 ) (24 ) (11 ) (447 ) Gain on Sale of Branches — (5,203 ) — — — Loss on Disposal of Fixed Assets 8 — — 3 — Tax effect (3 ) 1,102 5 2 94 Non-Cash Charges: Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown on Fixed Assets — 23 2 2,268 — Tax Effect — — — — — Adjusted Net Income (Non-GAAP) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,220,887 5,314,537 5,390,128 5,432,234 5,436,881 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.58 $ 1.31 $ 0.37 $ (0.04 ) $ 0.52 Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.59 $ 0.53 $ 0.36 $ 0.59 $ 0.46 Net Income (Loss) (GAAP) (Numerator) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Assets (Denominator) 1,423,071 1,477,509 1,469,277 1,485,664 1,424,732 Return on Average Assets (GAAP) 0.87 % 1.87 % 0.54 % (0.06 ) % 0.81 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Assets (Denominator) 1,423,071 1,477,509 1,469,277 1,485,664 1,424,732 Adjusted Return on Average Assets (Non-GAAP) 0.87 % 0.76 % 0.53 % 0.87 % 0.71 % Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Net Income (Loss) (GAAP) (Numerator) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) 130,012 131,892 132,661 134,875 135,037 Return on Average Equity (GAAP) 9.50 % 20.95 % 5.93 % (0.66 ) % 8.54 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) 130,012 131,892 132,661 134,875 135,037 Adjusted Return on Average Equity (Non-GAAP) 9.54 % 8.55 % 5.88 % 9.57 % 7.48 % Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company’s total value. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Assets (GAAP) $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 Goodwill and Intangible Assets, Net (14,582 ) (15,027 ) (15,472 ) (15,918 ) (17,599 ) Tangible Assets (Non-GAAP) (Numerator) $ 1,424,088 $ 1,410,452 $ 1,459,346 $ 1,445,695 $ 1,459,222 Stockholders' Equity (GAAP) $ 122,156 $ 133,124 $ 130,987 $ 132,536 $ 133,776 Goodwill and Intangible Assets, Net (14,582 ) (15,027 ) (15,472 ) (15,918 ) (17,599 ) Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator) $ 107,574 $ 118,097 $ 115,515 $ 116,618 $ 116,177 Stockholders’ Equity to Assets (GAAP) 8.5 % 9.3 % 8.9 % 9.1 % 9.1 % Tangible Common Equity to Tangible Assets (Non-GAAP) 7.6 % 8.4 % 7.9 % 8.1 % 8.0 % Common Shares Outstanding (Denominator) 5,156,897 5,260,672 5,330,401 5,409,077 5,434,374 Book Value per Common Share (GAAP) $ 23.69 $ 25.31 $ 24.57 $ 24.50 $ 24.62 Tangible Book Value per Common Share (Non-GAAP) $ 20.86 $ 22.45 $ 21.67 $ 21.56 $ 21.38 Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent (“FTE”) basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated: Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Interest Income (GAAP) $ 10,616 $ 10,963 $ 10,786 $ 10,820 $ 10,988 Adjustment to FTE Basis 40 41 41 43 40 Interest Income (FTE) (Non-GAAP) 10,656 11,004 10,827 10,863 11,028 Interest Expense (GAAP) 723 732 776 886 1,011 Net Interest Income (FTE) (Non-GAAP) $ 9,933 $ 10,272 $ 10,051 $ 9,977 $ 10,017 Net Interest Rate Spread (GAAP) 2.98 % 2.85 % 2.77 % 2.72 % 2.91 % Adjustment to FTE Basis 0.01 0.01 0.01 0.02 0.01 Net Interest Rate Spread (FTE) (Non-GAAP) 2.99 2.86 2.78 2.74 2.92 Net Interest Margin (GAAP) 3.08 % 2.95 % 2.88 % 2.84 % 3.04 % Adjustment to FTE Basis 0.02 0.01 0.01 0.01 0.01 Net Interest Margin (FTE) (Non-GAAP) 3.10 2.96 2.89 2.85 3.05 Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Noninterest Expense (GAAP) $ 8,656 $ 9,972 $ 9,773 $ 13,722 $ 9,395 Net Interest and Dividend Income (GAAP) 9,893 10,231 10,010 9,934 9,977 Noninterest Income (GAAP) 2,613 8,689 2,198 2,219 3,174 Operating Revenue (GAAP) 12,506 18,920 12,208 12,153 13,151 Efficiency Ratio (GAAP) 69.21 % 52.71 % 80.05 % 112.91 % 71.44 % Noninterest Expense (GAAP) $ 8,656 $ 9,972 $ 9,773 $ 13,722 $ 9,395 Less: Other Real Estate Owned (Income) (38 ) (30 ) (89 ) (26 ) (38 ) Amortization of Intangible Assets 445 445 446 503 532 Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown on Fixed Assets — 23 2 2,268 — Adjusted Noninterest Expense (Non-GAAP) $ 8,249 $ 9,534 $ 9,414 $ 9,799 $ 8,901 Net Interest and Dividend Income (GAAP) 9,893 10,231 10,010 9,934 9,977 Noninterest Income (GAAP) 2,613 8,689 2,198 2,219 3,174 Less: Net Gain on Securities (7 ) 44 24 11 447 Gain on Sale of Branches — 5,203 — — — Net Loss on Disposal of Fixed Assets (8 ) — — (3 ) — Adjusted Noninterest Income (Non-GAAP) 2,628 3,442 2,174 2,211 2,727 Adjusted Operating Revenue (Non-GAAP) 12,521 13,673 12,184 12,145 12,704 Adjusted Efficiency Ratio (Non-GAAP) 65.88 % 69.73 % 77.27 % 80.68 % 70.06 % Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Allowance for Loan Losses $ 11,595 $ 11,582 $ 11,581 $ 11,544 $ 12,725 Total Loans 1,020,642 $ 1,020,796 1,001,599 $ 1,007,446 $ 1,041,697 PPP Loans (8,242 ) (24,523 ) (32,703 ) (49,525 ) (60,380 ) Total Loans, Excluding PPP Loans (Non-GAAP) $ 1,012,400 $ 996,273 $ 968,896 $ 957,921 $ 981,317 Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) 1.15 % 1.16 % 1.20 % 1.21 % 1.30 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006072/en/Contacts Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 Investor Relations: Jeremy Hellman, Vice President The Equity Group Inc. Phone: (212) 836-9626 Email: jhellman@equityny.com
CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc. (“EU”), a wholly-owned insurance subsidiary of the Bank, today announced its first quarter 2022 financial results. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except per share data) (Unaudited) Net Income (Loss) (GAAP) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Non-Recurring Items (Non-GAAP) (1) 12 (4,122 ) (17 ) 3,440 (353 ) Adjusted Net Income (Non-GAAP) (1) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.58 $ 1.31 $ 0.37 $ (0.04 ) $ 0.52 Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1) $ 0.59 $ 0.53 $ 0.36 $ 0.59 $ 0.46 (1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of net income (loss) and adjusted earnings per common share - diluted in this Press Release. 2022 First Quarter Financial Highlights (Comparisons to three months ended March 31, 2021 unless otherwise noted) Net income was $3.0 million, compared to $2.8 million, largely due to the completion of the Company’s optimization program in 2021, which resulted in a reduction of noninterest expense. Adjusted net income (non-GAAP) was $3.1 million, compared to $2.5 million. Earnings per diluted common share (EPS) increased to $0.58 from $0.52. Adjusted earnings per common share - diluted (non-GAAP) was $0.59, compared to $0.46. Return on average assets (annualized) of 0.87%, compared to 0.81%. Adjusted return on average assets (annualized) (non-GAAP) of 0.87%, compared to 0.71%. Return on average equity (annualized) of 9.50%, compared to 8.54%. Adjusted return on average equity (annualized) (non-GAAP) of 9.54%, compared to 7.48%. Net interest margin (NIM) improved quarter over quarter to 3.08% from 2.95% for the three months ended December 31, 2021. NIM was 3.04% for the prior year period. Net interest and dividend income was $9.9 million, compared to $10.0 million. Noninterest income decreased to $2.6 million, compared to $3.2 million. The most significant changes in noninterest income were a $454,000 reduction in securities gains offset by an increase of $203,000 in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received, partially offset by a decrease in commercial and personal insurance commissions. (Amounts at March 31, 2022; comparisons to December 31, 2021, unless otherwise noted) Total loans, including Payroll Protection Program (“PPP”) loans, were $1.02 billion, a decrease of $154,000. Total loans held for investment, excluding PPP loans, increased $16.1 million, or 6.5% annualized, to $1.01 billion compared to $996.3 million at December 31, 2021 and included 69.7% and 3.6% annualized growth in consumer and commercial real estate loans, respectively. Nonperforming loans to total loans was 0.72%, a increase of 1 bps, compared to 0.71%. Total deposits were $1.25 billion, an increase of $23.7 million, compared to $1.23 billion. Total assets increased to $1.44 billion, compared to $1.43 billion. Book value per share was $23.69, compared to $24.62 at March 31, 2021 and $25.31 at December 31, 2021. Tangible book value per share (Non-GAAP) decreased to $20.86, compared to $21.38 at March 31, 2021 and $22.45 at December 31, 2021. Management Commentary President and CEO John H. Montgomery stated, “Our first quarter benefited from the combination of modest loan growth and improved efficiency levels which resulted in solid bottom-line income growth. We were pleased to see our loans, excluding PPP loans, grow 1.64% in the current quarter, or 6.5% annualized, led by commercial real estate and indirect auto. Our indirect auto loan business was fueled by the investments we have made in process efficiencies, which led directly to improved pull-through rates. We coupled that growth with an improved Efficiency Ratio, which declined 420 basis points from last year’s first quarter to 68.6% and is the result of the optimization program we largely completed last year. This improvement in our Efficiency Ratio is an important foundation supporting our goal of becoming a high performing bank.” Mr. Montgomery continued, “We furthered our commitment to CB shareholders as we completed a $7.5 million share repurchase program in February and have announced a new $10.0 million program, in addition to our regular quarterly dividend. We remain well-capitalized with the ability to support growth along with these shareholder-friendly actions. During the quarter, the Bank invested in sales leadership to accelerate growth. We recently hired Bruce Sharp as our Chief Commercial Banking Officer and Alan Bicker as Chief Consumer Banking Officer. In addition, Benjamin Brown was recently hired as Director of Client Experience and Innovation. All three of these gentlemen possess a wealth of experience and know our markets well. I am excited to have Bruce, Alan and Ben on board as we look to accelerated growth and leverage our work in efficiency and process optimization. Our regional economic activity remains strong and is bolstered by a number of top educational and medical institutions in addition to a strong technology presence, providing an excellent counter-balance to regular economic cycles. In addition, our region is a major supplier of natural gas and we are seeing some benefit from the recent surge in commodity prices.” Dividend Information The Company’s Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about May 31, 2022, to stockholders of record as of the close of business on May 20, 2022. Stock Repurchase Program On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company’s outstanding common stock. The program was effective as of June 14, 2021 and is authorized through June 13, 2022. On February 15, 2022, the Company completed the program, under which a total of 308,996 shares were repurchased at an average price of $24.27 per share for a total of approximately $7.5 million. On April 21, 2022, CB announced a program to repurchase up to $10.0 million of the Company’s outstanding shares of common stock. Based on the Company’s closing stock price on April 19, 2022, the repurchase program, if fully completed, would encompass 433,643 shares, or approximately 8.4% the shares currently outstanding. 2022 First Quarter Financial Review Net Interest and Dividend Income Net interest and dividend income decreased $84,000, or 0.8%, to $9.9 million for the three months ended March 31, 2022 compared to $10.0 million for the three months ended March 31, 2021. Net interest margin (FTE) (Non-GAAP) increased 5 basis points (“bps”) to 3.10% for the three months ended March 31, 2022 compared to 3.05% for the three months ended March 31, 2021. Net interest margin (GAAP) increased to 3.08% for the three months ended March 31, 2022 compared to 3.04% for the three months ended March 31, 2021. CB has controlled its deposit cost structure as deposit balances increased and benefited from non-renewal or repricing of higher-cost time deposits. Interest and dividend income decreased $372,000, or 3.4%, to $10.6 million for the three months ended March 31, 2022 compared to $11.0 million for the three months ended March 31, 2021. Interest income on loans decreased $595,000, or 5.9%, to $9.6 million for the three months ended March 31, 2022 compared to $10.1 million for the three months ended March 31, 2021. The average balance of loans decreased $22.6 million and the average yield decreased 15 bps to 3.85% compared to the three months ended March 31, 2021. Interest and fee income on PPP loans was $445,000 for the three months ended March 31, 2022 and contributed 13 bps to loan yield, compared to $676,000 for the three months ended March 31, 2021, which contributed 5 bps to loan yield. The impact of the accretion of the credit mark on acquired loan portfolios was $56,000 for the three months ended March 31, 2022 compared to $138,000 for the three months ended March 31, 2021, or 2 bps in the current period compared to 6 bps in the prior period. Interest income on taxable investment securities increased $259,000, or 40.1%, to $905,000 for the three months ended March 31, 2022 compared to $646,000 for the three months ended March 31, 2021 driven by a $93.0 million increase in average balance partially offset by a 42 bps decrease in average yield. Interest expense decreased $288,000, or 28.5%, to $723,000 for the three months ended March 31, 2022 compared to $1.0 million for the three months ended March 31, 2021. Interest expense on deposits decreased $417,000, or 44.0%, to $530,000 for the three months ended March 31, 2022 compared to $947,000 for the three months ended March 31, 2021. While average interest-earning deposit balances decreased $38.6 million compared to the three months ended March 31, 2021, controlling the deposit cost structure as deposit balances increased combined with non-renewal or repricing of higher-cost time deposit resulted in a 18 bp, or 41.4%, decrease in average cost compared to the three months ended March 31, 2021. The average balance of time deposits and the related average cost decreased $55.1 million and 30 bps, respectively. Provision for Loan Losses There was no provision for loan losses for either the three months ended March 31, 2022 or the three months ended March 31, 2021. The provision for loan losses remaining constant was primarily due to consistent loan balances between the periods and no significant changes in qualitative factors. Noninterest income Noninterest income decreased $561,000, or 17.7%, to $2.6 million for the three months ended March 31, 2022, compared to $3.2 million for the three months ended March 31, 2021. The decrease was largely due to a $454,000 reduction in securities gains, partially offset by a $203,000 improvement in insurance commissions. The increase in insurance commissions was primarily driven by contingency income of $114,000 which resulted from the higher than lock-in amounts received and commercial insurance commissions, partially offset by a decrease in personal insurance commissions. In addition, net gain on sale of loans decreased $86,000 as there were no loans sold for the three months ended March 31, 2022. Noninterest Expense Noninterest expense decreased $739,000, or 7.9%, to $8.7 million for the three months ended March 31, 2022 compared to $9.4 million for the three months ended March 31, 2021, primarily due to the implementation of branch optimization initiatives begun in 2020 and completed during 2021 which established a lower expense base. Offsetting the lower base in the first quarter were investment in executive leadership tasked with driving growth initiatives. Contracted services decreased $100,000 to $587,000 for the three months ended March 31, 2022 compared to $687,000 for the three months ended March 31, 2021. This was a result of the previously mentioned branch optimization initiatives completed in the prior year. Statement of Financial Condition Review Assets Total assets increased $13.2 million, or 0.9%, to $1.44 billion at March 31, 2022, compared to $1.43 billion at December 31, 2021. Cash and due from banks increased $3.9 million, or 3.3%, to $123.6 million at March 31, 2022, compared to $119.7 million at December 31, 2021. The change is primarily due to an increase in deposits as further described below in the Liabilities section. The increase was partially offset by purchases of securities detailed in the below Securities section. Securities increased $6.1 million, or 2.7%, to $231.1 million at March 31, 2022, compared to $225.0 million at December 31, 2021. Current period activity included $26.8 million of purchases, and $8.3 million of paydowns. The purchases were made to earn a higher yield on excess cash. In addition, there was a $12.4 million decrease in the market value of the debt securities portfolio, primarily due to the increase in market interest rates and a $7,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks. Payroll Protection Program (“PPP”) Update PPP loans decreased $16.3 million to $8.2 million at March 31, 2022 compared to $24.5 million at December 31, 2021 $274,000 of net PPP loan origination fees were unearned at March 31, 2022 compared to $678,000 at December 31, 2021. $404,000 of net PPP loan origination fees were earned for the three months ended March 31, 2022 compared to $321,000 for the three months ended December 31, 2021. Loans and Credit Quality Total loans held for investment decreased $154,000, or 0.02%, to $1.02 billion at March 31, 2022 compared to $1.02 billion at December 31, 2021. Excluding the net decline of $16.3 million in PPP loans in the current period, loans increased $16.1 million. Average loans for the three months ended March 31, 2022 increased $4.4 million compared to the three months ended December 31, 2021. An increase in consumer and commercial real estate loans was the primary driver in the average balance increase, offset by quicker payoffs in residential, and commercial and industrial loans. The allowance for loan losses was $11.6 million at both March 31, 2022 and December 31, 2021. As a result, the allowance for loan losses to total loans was 1.14% at March 31, 2022 compared to 1.13% at December 31, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.15% at March 31, 2022 compared to 1.16% at December 31, 2021. The lack of change in the allowance for loan losses was primarily due to consistent loan balances between the periods and no significant changes in qualitative factors. Net recoveries for the three months ended March 31, 2022 were $13,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the three months ended March 31, 2021 were $46,000, or 0.02% of average loans on an annualized basis. Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $7.3 million at both March 31, 2022 and December 31, 2021. Nonperforming loans to total loans ratio was 0.72% at March 31, 2022 compared to 0.71% at December 31, 2021. There was one loan in forbearance at March 31, 2022 totaling $128,000, compared to no loans in forbearance at December 31, 2021. Other Intangible Assets decreased $445,000, or 7.6%, to $4.9 million at March 31, 2022 compared to $5.3 million at December 31, 2021 primarily due to amortization expense recognized during the period Accrued Interest Receivable and Other Assets increased $3.7 million, or 28.8% to $16.5 million at March 31, 2022, compared to $12.9 million at December 31, 2021. This change is primarily driven by deferred taxes as a result of the increase in market interest rates conditions and the decrease in the market value of the securities portfolio. Liabilities Total liabilities increased $24.2 million, or 1.9%, to $1.32 billion at March 31, 2022 compared to $1.29 billion at December 31, 2021. Deposits Total deposits increased $23.7 million to $1.25 billion as of March 31, 2022 compared to $1.23 billion at December 31, 2021. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $14.3 million, $7.9 million and $8.1 million, respectively, partially offset by a decrease of $7.5 million in time deposits. Annualized deposit growth rate was 7.7%. Average total deposits decreased $54.6 million, primarily in time deposits, for the three months ended March 31, 2022 compared to the three months ended December 31, 2021. Borrowed Funds Short-term borrowings decreased $47,000 , or 0.1%, to $39.2 million at March 31, 2022, compared to $39.3 million at December 31, 2021. At March 31, 2022 and December 31, 2021, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase. Stockholders’ Equity Stockholders’ equity decreased $11.0 million, or 8.3%, to $122.2 million at March 31, 2022, compared to $133.1 million at December 31, 2021. The Company paid $1.2 million in dividends and repurchased $3.4 million of its common stock as part of its stock repurchase program that was completed on February 15, 2022. In addition, accumulated other comprehensive income decreased $9.7 million primarily due to the effect of rising market interest rates on the Bank’s debt securities. This was partially offset by $3.0 million of net income. Book value per share Book value per common share was $23.69 at March 31, 2022 compared to $25.31 at December 31, 2021, a decrease of $1.62. Tangible book value per common share (Non-GAAP) was $20.86 at March 31, 2022, compared to $22.45 at December 31, 2021, a decrease of $1.59. Refer to “Explanation of Use of Non-GAAP Financial Measures” at the end of this Press Release. About CB Financial Services, Inc. CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary. For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv. Statement About Forward-Looking Statements Statements contained in this press release 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. CB FINANCIAL SERVICES, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION (Dollars in thousands, except share and per share data) (Unaudited) Selected Financial Condition Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 ASSETS Cash and Due From Banks $ 123,588 $ 119,674 $ 173,523 $ 172,010 $ 230,000 Securities 231,097 224,974 221,351 208,472 142,156 Loans Held for Sale — — 17,407 11,409 — Loans Real Estate: Residential 317,254 320,798 317,373 322,480 339,596 Commercial 427,227 392,124 379,621 360,518 370,118 Construction 54,227 85,028 78,075 85,187 77,714 Commercial and Industrial Commercial and Industrial 59,601 64,487 69,657 70,666 68,551 PPP 8,242 24,523 32,703 49,525 60,380 Consumer 143,422 122,152 112,087 106,404 111,650 Other 10,669 11,684 12,083 12,666 13,688 Total Loans 1,020,642 1,020,796 1,001,599 1,007,446 1,041,697 Allowance for Loan Losses (11,595 ) (11,582 ) (11,581 ) (11,544 ) (12,725 ) Loans, Net 1,009,047 1,009,214 990,018 995,902 1,028,972 Premises and Equipment Held for Sale — — 795 795 — Premises and Equipment, Net 18,349 18,399 18,502 18,682 20,240 Bank-Owned Life Insurance 25,468 25,332 25,190 25,052 24,916 Goodwill 9,732 9,732 9,732 9,732 9,732 Intangible Assets, Net 4,850 5,295 5,740 6,186 7,867 Accrued Interest and Other Assets 16,539 12,859 12,560 13,373 12,938 Total Assets $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 LIABILITIES Deposits Held for Sale $ — $ — $ 102,647 $ 102,557 $ — Deposits Non-Interest Bearing Demand Deposits 400,105 385,775 373,320 368,452 377,137 Interest Bearing Demand Accounts 280,455 272,518 244,004 246,920 280,929 Money Market Accounts 192,929 192,125 190,426 176,824 198,975 Savings Accounts 247,589 239,482 232,679 226,639 246,725 Time Deposits 129,235 136,713 144,727 154,718 180,697 Total Deposits 1,250,313 1,226,613 1,185,156 1,173,553 1,284,463 Short-Term Borrowings 39,219 39,266 42,623 39,054 45,352 Other Borrowings 17,607 17,601 6,000 6,000 6,000 Accrued Interest Payable and Other Liabilities 9,375 8,875 7,405 7,913 7,230 Total Liabilities 1,316,514 1,292,355 1,343,831 1,329,077 1,343,045 STOCKHOLDERS’ EQUITY $ 122,156 $ 133,124 $ 130,987 $ 132,536 $ 133,776 Three Months Ended Selected Operating Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Interest and Dividend Income Loans, Including Fees $ 9,551 $ 9,904 $ 9,718 $ 9,936 $ 10,146 Securities: Taxable 905 866 843 635 646 Tax-Exempt 66 66 71 74 78 Dividends 22 21 19 24 20 Other Interest and Dividend Income 72 106 135 151 98 Total Interest and Dividend Income 10,616 10,963 10,786 10,820 10,988 Interest Expense Deposits 530 636 715 827 947 Short-Term Borrowings 19 26 25 24 23 Other Borrowings 174 70 36 35 41 Total Interest Expense 723 732 776 886 1,011 Net Interest and Dividend Income 9,893 10,231 10,010 9,934 9,977 Provision (Recovery) for Loan Losses — 75 — (1,200 ) — Net Interest and Dividend Income After Provision (Recovery) for Loan Losses 9,893 10,156 10,010 11,134 9,977 Noninterest Income: Service Fees 526 569 602 614 546 Insurance Commissions 1,798 1,618 1,194 1,209 1,595 Other Commissions 89 90 93 173 165 Net Gain on Sales of Loans — 977 49 31 86 Net (Loss) Gain on Securities (7 ) 44 24 11 447 Net Gain on Purchased Tax Credits 14 17 18 17 18 Gain on Sale of Branches — 5,203 — — — Net Loss on Disposal of Fixed Assets (8 ) — — (3 ) — Income from Bank-Owned Life Insurance 136 142 138 136 137 Other Income 65 29 80 31 180 Total Noninterest Income 2,613 8,689 2,198 2,219 3,174 Noninterest Expense: Salaries and Employee Benefits 4,565 5,181 4,787 5,076 4,894 Occupancy 686 619 615 1,024 710 Equipment 210 252 205 311 266 Data Processing 485 488 541 607 518 FDIC Assessment 209 222 293 249 250 PA Shares Tax 240 173 224 225 265 Contracted Services 587 1,133 1,441 750 687 Legal and Professional Fees 152 206 180 419 189 Advertising 116 191 225 193 140 Other Real Estate Owned (Income) (38 ) (30 ) (89 ) (26 ) (38 ) Amortization of Intangible Assets 445 445 446 503 532 Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown of Fixed Assets — 23 2 2,268 — Other 999 1,069 903 945 982 Total Noninterest Expense 8,656 9,972 9,773 13,722 9,395 Income (Loss) Before Income Tax Expense (Benefit) 3,850 8,873 2,435 (369 ) 3,756 Income Tax Expense (Benefit) 803 1,908 452 (146 ) 911 Net Income (Loss) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Three Months Ended Per Common Share Data 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Dividends Per Common Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Earnings (Loss) Per Common Share - Basic 0.59 1.32 0.37 (0.04 ) 0.52 Earnings (Loss) Per Common Share - Diluted 0.58 1.31 0.37 (0.04 ) 0.52 Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1) 0.59 0.53 0.36 0.59 0.46 Weighted Average Common Shares Outstanding - Basic 5,198,194 5,291,795 5,373,032 5,432,234 5,434,374 Weighted Average Common Shares Outstanding - Diluted 5,220,887 5,314,537 5,390,128 5,432,234 5,436,881 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Common Shares Outstanding 5,156,897 5,260,672 5,330,401 5,409,077 5,434,374 Book Value Per Common Share $ 23.69 $ 25.31 $ 24.57 $ 24.50 $ 24.62 Tangible Book Value per Common Share (1) 20.86 22.45 21.67 21.56 21.38 Stockholders’ Equity to Assets 8.5 % 9.3 % 8.9 % 9.1 % 9.1 % Tangible Common Equity to Tangible Assets (1) 7.6 8.4 7.9 8.1 8.0 Three Months Ended Selected Financial Ratios (2) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Return on Average Assets 0.87 % 1.87 % 0.54 % (0.06 ) % 0.81 % Adjusted Return on Average Assets (1) 0.87 0.76 0.53 0.87 0.71 Return on Average Equity 9.50 20.95 5.93 (0.66 ) 8.54 Adjusted Return on Average Equity (1) 9.54 8.55 5.88 9.57 7.48 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 144.48 145.09 146.78 146.82 142.98 Average Equity to Average Assets 9.14 8.93 9.03 9.08 9.48 Net Interest Rate Spread 2.98 2.85 2.77 2.72 2.91 Net Interest Rate Spread (FTE) (1) 2.99 2.86 2.78 2.74 2.92 Net Interest Margin 3.08 2.95 2.88 2.84 3.04 Net Interest Margin (FTE) (1) 3.10 2.96 2.89 2.85 3.05 Net (Recoveries) Charge-offs to Average Loans (0.01 ) 0.03 (0.01 ) (0.01 ) 0.02 Efficiency Ratio 69.21 52.71 80.05 112.91 71.44 Adjusted Efficiency Ratio (1) 65.88 69.73 77.27 80.68 70.06 Asset Quality Ratios 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Allowance for Loan Losses to Total Loans 1.14 % 1.13 % 1.16 % 1.15 % 1.22 % Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) (1) 1.15 1.16 1.20 1.21 1.30 Allowance for Loan Losses to Nonperforming Loans (3) 158.88 159.40 106.18 74.92 89.29 Allowance for Loan Losses to Noncurrent Loans (4) 218.28 233.37 135.37 90.83 118.08 Delinquent and Nonaccrual Loans to Total Loans (4) (5) 0.79 0.78 0.97 1.37 1.18 Nonperforming Loans to Total Loans (3) 0.72 0.71 1.09 1.53 1.37 Noncurrent Loans to Total Loans (4) 0.52 0.49 0.85 1.26 1.03 Nonperforming Assets to Total Assets (6) 0.51 0.51 0.74 1.07 0.98 Capital Ratios (7) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Common Equity Tier 1 Capital (to Risk Weighted Assets) 11.99 % 11.95 % 11.53 % 11.67 % 11.85 % Tier 1 Capital (to Risk Weighted Assets) 11.99 11.95 11.53 11.67 11.85 Total Capital (to Risk Weighted Assets) 13.20 13.18 12.77 12.92 13.10 Tier 1 Leverage (to Adjusted Total Assets) 8.19 7.76 7.38 7.23 7.87 (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (2) Interim period ratios are calculated on an annualized basis. (3) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (4) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (5) Delinquent loans consist of accruing loans that are 30 days or more past due. (6) Nonperforming assets consist of nonperforming loans and other real estate owned. (7) Capital ratios are for Community Bank only. Certain items previously reported may have been reclassified to conform with the current reporting period’s format. AVERAGE BALANCES AND YIELDS Three Months Ended March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31, 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) $ 1,009,210 $ 9,573 3.85 % $ 1,004,827 $ 9,927 3.92 % $ 1,004,474 $ 9,740 3.85 % $ 1,016,868 $ 9,959 3.93 % $ 1,031,853 $ 10,168 4.00 % Debt Securities Taxable 215,906 905 1.68 205,328 866 1.69 197,763 843 1.71 124,685 635 2.04 122,883 646 2.10 Exempt From Federal Tax 10,195 84 3.30 10,477 84 3.21 11,647 90 3.09 12,276 94 3.06 12,943 96 2.97 Equity Securities 2,693 22 3.27 2,693 21 3.12 2,655 19 2.86 2,649 24 3.62 2,632 20 3.04 Interest Bearing Deposits at Banks 59,296 22 0.15 150,102 19 0.05 160,935 74 0.18 242,348 89 0.15 157,962 36 0.09 Other Interest-Earning Assets 3,483 50 5.82 3,475 87 9.93 3,512 61 6.89 4,044 62 6.15 3,909 62 6.43 Total Interest-Earning Assets 1,300,783 10,656 3.32 1,376,902 11,004 3.17 1,380,986 10,827 3.11 1,402,870 10,863 3.11 1,332,182 11,028 3.36 Noninterest-Earning Assets 122,288 100,607 88,291 82,794 92,550 Total Assets $ 1,423,071 $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 Liabilities and Stockholders' Equity Interest-Bearing Liabilities: Interest-Bearing Demand Deposits (3) $ 276,603 48 0.07 % $ 278,546 51 0.07 % $ 275,411 48 0.07 $ 275,752 55 0.08 $ 259,065 77 0.12 % Savings (3) 243,786 19 0.03 252,387 20 0.03 251,801 21 0.03 247,238 25 0.04 239,850 32 0.05 Money Market (3) 192,425 41 0.09 209,572 57 0.11 198,167 55 0.11 199,652 71 0.14 197,395 98 0.20 Time Deposits (3) 132,015 422 1.30 154,342 508 1.31 168,654 591 1.39 177,506 676 1.53 187,114 740 1.60 Total Interest-Bearing Deposits (3) 844,829 530 0.25 894,847 636 0.28 894,033 715 0.32 900,148 827 0.37 883,424 947 0.43 Short-Term Borrowings Securities Sold Under Agreements to Repurchase 37,884 19 0.20 44,709 26 0.23 40,818 25 0.24 49,325 24 0.20 41,094 23 0.23 Other Borrowings 17,604 174 4.01 9,474 70 2.93 6,000 36 2.38 6,000 35 2.34 7,200 41 2.31 Total Interest-Bearing Liabilities 900,317 723 0.33 949,030 732 0.31 940,851 776 0.33 955,473 886 0.37 931,718 1,011 0.44 Noninterest-Bearing Demand Deposits 384,188 388,787 387,746 387,317 349,108 Other Liabilities 8,554 7,800 8,019 7,999 8,869 Total Liabilities 1,293,059 1,345,617 1,336,616 1,350,789 1,289,695 Stockholders' Equity 130,012 131,892 132,661 134,875 135,037 Total Liabilities and Stockholders' Equity $ 1,423,071 $ 1,477,509 $ 1,469,277 $ 1,485,664 $ 1,424,732 Net Interest Income (FTE) (Non-GAAP) (4) 9,933 10,272 10,051 9,977 10,017 Net Interest-Earning Assets (5) 400,466 427,872 440,135 447,397 400,464 Net Interest Rate Spread (FTE) (Non-GAAP) (4) (6) 2.99 % 2.86 % 2.78 2.74 2.92 % Net Interest Margin (FTE) (Non-GAAP) (4)(7) 3.10 2.96 2.89 2.85 3.05 PPP Loans 14,673 445 12.30 29,067 391 5.34 40,313 484 4.76 57,661 636 4.42 56,945 676 4.81 (1) Annualized based on three months ended results. (2) Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale. (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 Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (6) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (7) Net interest margin represents annualized net interest income divided by average total interest-earning assets. 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 Press Release 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. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (Loss) (GAAP) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Adjustments Loss (Gain) on Securities 7 (44 ) (24 ) (11 ) (447 ) Gain on Sale of Branches — (5,203 ) — — — Loss on Disposal of Fixed Assets 8 — — 3 — Tax effect (3 ) 1,102 5 2 94 Non-Cash Charges: Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown on Fixed Assets — 23 2 2,268 — Tax Effect — — — — — Adjusted Net Income (Non-GAAP) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,220,887 5,314,537 5,390,128 5,432,234 5,436,881 Earnings (Loss) per Common Share - Diluted (GAAP) $ 0.58 $ 1.31 $ 0.37 $ (0.04 ) $ 0.52 Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.59 $ 0.53 $ 0.36 $ 0.59 $ 0.46 Net Income (Loss) (GAAP) (Numerator) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Assets (Denominator) 1,423,071 1,477,509 1,469,277 1,485,664 1,424,732 Return on Average Assets (GAAP) 0.87 % 1.87 % 0.54 % (0.06 ) % 0.81 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Assets (Denominator) 1,423,071 1,477,509 1,469,277 1,485,664 1,424,732 Adjusted Return on Average Assets (Non-GAAP) 0.87 % 0.76 % 0.53 % 0.87 % 0.71 % Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Net Income (Loss) (GAAP) (Numerator) $ 3,047 $ 6,965 $ 1,983 $ (223 ) $ 2,845 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) 130,012 131,892 132,661 134,875 135,037 Return on Average Equity (GAAP) 9.50 % 20.95 % 5.93 % (0.66 ) % 8.54 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,059 $ 2,843 $ 1,966 $ 3,217 $ 2,492 Annualization Factor 4.06 3.97 3.97 4.01 4.06 Average Equity (Denominator) (GAAP) 130,012 131,892 132,661 134,875 135,037 Adjusted Return on Average Equity (Non-GAAP) 9.54 % 8.55 % 5.88 % 9.57 % 7.48 % Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company’s total value. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands, except share and per share data) (Unaudited) Assets (GAAP) $ 1,438,670 $ 1,425,479 $ 1,474,818 $ 1,461,613 $ 1,476,821 Goodwill and Intangible Assets, Net (14,582 ) (15,027 ) (15,472 ) (15,918 ) (17,599 ) Tangible Assets (Non-GAAP) (Numerator) $ 1,424,088 $ 1,410,452 $ 1,459,346 $ 1,445,695 $ 1,459,222 Stockholders' Equity (GAAP) $ 122,156 $ 133,124 $ 130,987 $ 132,536 $ 133,776 Goodwill and Intangible Assets, Net (14,582 ) (15,027 ) (15,472 ) (15,918 ) (17,599 ) Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator) $ 107,574 $ 118,097 $ 115,515 $ 116,618 $ 116,177 Stockholders’ Equity to Assets (GAAP) 8.5 % 9.3 % 8.9 % 9.1 % 9.1 % Tangible Common Equity to Tangible Assets (Non-GAAP) 7.6 % 8.4 % 7.9 % 8.1 % 8.0 % Common Shares Outstanding (Denominator) 5,156,897 5,260,672 5,330,401 5,409,077 5,434,374 Book Value per Common Share (GAAP) $ 23.69 $ 25.31 $ 24.57 $ 24.50 $ 24.62 Tangible Book Value per Common Share (Non-GAAP) $ 20.86 $ 22.45 $ 21.67 $ 21.56 $ 21.38 Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent (“FTE”) basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated: Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Interest Income (GAAP) $ 10,616 $ 10,963 $ 10,786 $ 10,820 $ 10,988 Adjustment to FTE Basis 40 41 41 43 40 Interest Income (FTE) (Non-GAAP) 10,656 11,004 10,827 10,863 11,028 Interest Expense (GAAP) 723 732 776 886 1,011 Net Interest Income (FTE) (Non-GAAP) $ 9,933 $ 10,272 $ 10,051 $ 9,977 $ 10,017 Net Interest Rate Spread (GAAP) 2.98 % 2.85 % 2.77 % 2.72 % 2.91 % Adjustment to FTE Basis 0.01 0.01 0.01 0.02 0.01 Net Interest Rate Spread (FTE) (Non-GAAP) 2.99 2.86 2.78 2.74 2.92 Net Interest Margin (GAAP) 3.08 % 2.95 % 2.88 % 2.84 % 3.04 % Adjustment to FTE Basis 0.02 0.01 0.01 0.01 0.01 Net Interest Margin (FTE) (Non-GAAP) 3.10 2.96 2.89 2.85 3.05 Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability. Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Noninterest Expense (GAAP) $ 8,656 $ 9,972 $ 9,773 $ 13,722 $ 9,395 Net Interest and Dividend Income (GAAP) 9,893 10,231 10,010 9,934 9,977 Noninterest Income (GAAP) 2,613 8,689 2,198 2,219 3,174 Operating Revenue (GAAP) 12,506 18,920 12,208 12,153 13,151 Efficiency Ratio (GAAP) 69.21 % 52.71 % 80.05 % 112.91 % 71.44 % Noninterest Expense (GAAP) $ 8,656 $ 9,972 $ 9,773 $ 13,722 $ 9,395 Less: Other Real Estate Owned (Income) (38 ) (30 ) (89 ) (26 ) (38 ) Amortization of Intangible Assets 445 445 446 503 532 Intangible Assets and Goodwill Impairment — — — 1,178 — Writedown on Fixed Assets — 23 2 2,268 — Adjusted Noninterest Expense (Non-GAAP) $ 8,249 $ 9,534 $ 9,414 $ 9,799 $ 8,901 Net Interest and Dividend Income (GAAP) 9,893 10,231 10,010 9,934 9,977 Noninterest Income (GAAP) 2,613 8,689 2,198 2,219 3,174 Less: Net Gain on Securities (7 ) 44 24 11 447 Gain on Sale of Branches — 5,203 — — — Net Loss on Disposal of Fixed Assets (8 ) — — (3 ) — Adjusted Noninterest Income (Non-GAAP) 2,628 3,442 2,174 2,211 2,727 Adjusted Operating Revenue (Non-GAAP) 12,521 13,673 12,184 12,145 12,704 Adjusted Efficiency Ratio (Non-GAAP) 65.88 % 69.73 % 77.27 % 80.68 % 70.06 % Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 (Dollars in thousands) (Unaudited) Allowance for Loan Losses $ 11,595 $ 11,582 $ 11,581 $ 11,544 $ 12,725 Total Loans 1,020,642 $ 1,020,796 1,001,599 $ 1,007,446 $ 1,041,697 PPP Loans (8,242 ) (24,523 ) (32,703 ) (49,525 ) (60,380 ) Total Loans, Excluding PPP Loans (Non-GAAP) $ 1,012,400 $ 996,273 $ 968,896 $ 957,921 $ 981,317 Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP) 1.15 % 1.16 % 1.20 % 1.21 % 1.30 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006072/en/
Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 Investor Relations: Jeremy Hellman, Vice President The Equity Group Inc. Phone: (212) 836-9626 Email: jhellman@equityny.com