Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — KBW Community Bank Investors Conference 2016
27 slides from Cb Financial Services's conference presentation, Aug 1, 2016
Slide 1: CB Financial Services, Inc. Investor Presentation
th Financial Services, Inc. The Holding Company of Community Bank Investor Presentation KBW Community Bank Investors Conference August 2016
Slide 2: Forward-Looking Statements
th Forward-Looking Statements Statements contained in this investor presentation that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to i i intends be d
Slide 3: CB Financial Services Overview
th CB Financial Services Overview
Slide 4: Franchise Summary
th Franchise Summary (NASDAQ: CBFV) ™ Top 10 market share in core operating area(’); Corporate Highlights (6/30/2016) focused in South Hills market of the Pittsburgh itan area metropolit th Financial Services, Inc. The Hiding Compsry of Comma ™ Regional economic drivers: nancies Services: Corporate
Slide 5: CBFV Footprint
th CBFV Footprint “Source: SNL Finan ‘Note: Map includes i led serie fetes.
Slide 6: Key Senior Management
th Key Senior Management Ralph Sommers Pat O'Brien ® Chai aired Set Bank in 1979 as EVP s @ Vice Chairman, President & CEO ™ Director, Senior Executive Vice President 1988 ™ Board member since 1983 and Chairman since 1999 Kevin Lemley Ralph Burchian 1992 and ” lenin practice to become President in 1
Slide 7: Attractive Southwestern PA Market
th Attractive Southwestern PA Market . counties: a, > Washington WASHINGTON HEALTH SYSTEM > Greene PEIMISS = consotenercy Exe la > Westmoreland drain MeNTONGNCE Health > Fayette er > Allegheny Meavows - ‘Monon ‘eye, CATERPILLAR aK ‘Operating Areal’) Summary Statistics (5 County Franchise) ®@ Populat
Slide 8: Pittsburgh Metropolitan Area
th 1 Pittsburgh Metropolitan area tsb ingety bu} Google, Apple and > Healthcare (UPMC) > Financial services > 36 colleges & universities roduce a highly eelucated labor > “Most Livable Place in the Continental US") Marcellus / Utica Shale > Estimated recoverable reserves cfappiatey 400 trillion quiv
Slide 9: Shell Cracker Plant Site
Shell Cracker Plant Site just off Interstate 376 Township water supply finished Simies ea ALLEGHENY on ane i 2016, Shell Chemical it would move forward to colt ancathane cracker plant Beaver County, P/ Planning and construction on the Segnied $6 billion facility is well underwa\ = The ie is estimate
Slide 10: Diversified Business Mix
th Diversified Business Mix Retail Banking & Wealth Management Commercial Banking ™ ~25% of deposits are noninterest bearing = Focused on improving sales culture = More than 75% nonime deposits loan growth = Wealth management services linked strongly to . Marcellus Region footprint and medium sized
Slide 11: Financial Performance
th Financial Performance
Slide 12: Historical Financial Highlights
Cl Historical Financial Highlights Consistently profitable throughout the financial crisis [Total Assets 486 a4 $8 $3 : Total Loans HF I 379,146 685,646 683,354] 663,150 678,975 tal Deposits 480,325 697,494 © 679,299] 695.455 675,266 ; : ¥ z ; = [Tangitie Common Equity” 42847 71,902 «7,890| 74,430 «
Slide 13: Post Merger Financial Achievements
Post Merger Financial Achievements 120) 11.7% 120% — 70.0% 0,08: 814% 9.0% 60.0% 6.0% 50.0% 3.0% 40.0% 0.0% 30.0% + + 2013 Pre Merger 2015 Post Merger 2013 Pre Merger "3015 Post Merger 2013 Pre Merger 2015 Post Merger Total Assets (SM) Total Loans HFl (SM) Earnings Per Share 1000) Loans | Deposits:
Slide 14: Balanced Fee Revenue Mix
b Balanced Fee Revenue Mix With Cl Opportunity For Continued Improvement Revenue Mix — 2016 YTD Fee Revenue Mix — 2016 YTD Net Interest Income 80% 2016 YTD Fee Income: $3.72 Million ‘Source: Compeny documents
Slide 15: Net Interest Margin
Cl Net Interest Margin Net Interest Margin LJ 450% cost of funds 4.00% | 3.89% 3.79% 383% 377% 390% a.e2% 3.50% . it ‘Lower for a8 vonger i interest Tate environment, not 2.50% 201501 2015G2 201503 201504 201601 201602 ec PA Peer Median Cost of Funds Yield on Average Eamings Assets 0.60% 5.00% 0.50%
Slide 16: 6/30/16 Gross Loans HFI ($679M)
th 6/30/16 Gross Loans HFI ($679M) Othe Consumer Commercial and Industrial Residential RE 12% Construction 2% ‘Source: Compeny documents and SNL Fsncit Dstais as of 62016, Loan Composition ™ Balanced loan portfolio @ Approximately 6% ea over year commercial loan gi ® No commercial real estate loan c
Slide 17: Deposit Composition
th Deposit Composition ™ Stable, 6/30/16 Deposits ($675M) Time Deposits > $250,000 Time Deposits 4% <$250,000 16% st of June 30, 2016 ™ More than 75% non-time deposits; less than 10% time deposits >$250,000 and brokered deposits MMA 8 savings 39% al @ Approxi y y y growth in core demand account base
Slide 18: Strong Asset Quality: Nonperforming Assets
at Nonperforming Assets / Assets"? 1% Strong Asset Quality 0.87% 2012Y 2013 2014y -2015Y 201601 201602 PA Peer Median Nonperforming Assets / Loans + OREO" 20127 2018Y 2014Y 2015Y 201601 201602 PA Peer Median NCOs / Avg. Loans 0.22% 2012Y © 2013Y 2014Y -201SY 201601 201602 wmecerV PA Peer Median
Slide 19: Allowance for Loan Losses / NPLs
th Allowance for Loan Losses / NPLs“) 200% 150% 137.0% 103.4% 100 50% 0% + —- a 2012Y -2013Y 214Y2015Y 201801 201602 men crV PA Peer Median Allowance for Loan Losses / Loans 2.00% 1.70% 1.60% 1.42% 1.39% 1.43% 1.43% 4.40% 7 zz | 1.20% 1 td 080% 0.40% 0 1.06% 0.00% + : ——— 2012Y 2013Y 2014y-2015Y 201
Slide 20: Summary
th Summary
Slide 21: CB Financial Services — Recent Achievements
0 October 34, th CB Financial Services — Recent Achievements November 3, symbol “CBFV” April 2045 Pennsylvania\" for its 2014 Return on Equity June 4 Cune, President & CEO, World dune 18,2015: P; Southpointe C ny Asso August 22. las CEO” award by the October 5, 2015: Designated a “Sm-All Star” by Sa
Slide 22: Strategic Vision for CB Financial Services
th Strategic Vision for CB Financial Services ver $1.0 billion in total assets in Southwestern Pennsylvania Creation of a commercial business customers profitability future Empower our experienced, high quality employ mer service in all asp our business Be the Community Bank small and medium sized b
Slide 23: Attractive Valuation
th Attractive Valuation TM ROAA (%) ™ Better than peer profitability 128%. ™ Strong balance sheet 1.00% 0.95% 0.82% price recovery 075% a = r ™® Dividend yield of 4.0% vs. peer median of 1.4% 0.50% . i earings multiples 0.25% ESOT CBFV Exchange Traded Peers Price /LTM EPS Price / 2017 EPS“) Price /
Slide 24: Questions?
th Questions?
Slide 25: Appendix
th Appendix
Slide 26: Non-GAAP Reconciliations
Cl Non-GAAP Reconciliations For the Years Ended ‘Stocknolders' Equty Intangible Assets ‘angibie Common Equity atl ineangie Assets sets cose) ‘G206) vee (10283) ose a Ess For the Period Ended ‘eNOS Faas 033) 20.436 0677 188 1052 9,306) 0,289) ws 038 Tenge Pause Pee Te Teens Teese hares Custancing 246
Slide 27: Non-GAAP Reconciliations
Cl Non-GAAP Reconciliations (alias in thousands) For the Years Ended Forthe YTD En PE 201d Zoe “aaoras. let income 3 4256 am. Seam Saas Amortization of intangibles (After Tax) 34 58 388 174 ‘Adjusted Net Income (Numerator) Tao Fao es as Annualzation Factor 1.000 1.900 1,000 2017 Average Total Equity
CB Financial Services — KBW Community Bank Investors Conference 2016 on 6ix