Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Investor Presentation (May 2021)
41 slides from Cb Financial Services's investor presentation, May 4, 2021
Slide 1: Moving Forward – Building a Stronger Community
Moving Forward – Building a Stronger Community Investor Presentation May 2021
Slide 2: Forward-Looking Statement
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 2 Forward-Looking Statement Statements contained in this investor presentation that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 (the “Act”).
Slide 3: At a Glance – CB Financial Services, Inc.
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 3 At a Glance – CB Financial Services, Inc. Shareholder Information Share Price $21.50 Shares Outstanding 5.4M Public Float 4.9M Market Cap $116.1M Total Stockholder’s Equity $133.8M Book Value per Share (GAAP) $24.62 Tangible Book Value per S
Slide 4: Community Bank Mission Statement
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 4 Community Bank Mission Statement Community Bank is an exceptional, independent financial institution. We will provide our customers with valuable, appropriate products and outstanding personal service. Community Bank strives to continue to g
Slide 5: Diversified Business
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 5 Diversified Business ▪ Well-positioned to serve the needs of small and medium-sized businesses across our footprint ▪ Growing presence within the Pittsburgh MSA ▪ Strong asset quality Commercial Banking Retail Banking Mortgage Banking Insura
Slide 6: Strategic priorities
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 6 ◼ Empower our experienced, high-quality employees to provide superior customer service in all aspects of our business ◼ Net Promoter Score of 45 vs. a U.S. bank average of 35 (higher number represents an increasingly satisfied customer base)
Slide 7: Pittsburgh MSA market
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 7 ◼ Population of approximately 2.3 million with a median household income of nearly $64,000, which is projected to increase 10.2% in the next 5 years ◼ Large market for energy, healthcare, technology, and manufacturing companies(1) ◼ Highly e
Slide 8: Leveraging a Rich History and Community Presence
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 8 Leveraging a Rich History and Community Presence 1901 1987 2006 2007-2019 2020 2021 - The Bank was originally chartered in 1901 as The First National Bank of Carmichaels, serving southwestern PA and local community Changed name to Community
Slide 9: Evaluating Market Changes ~ Need to Adapt
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 9 ZIRR Creates NIM Pressures on All Banks Disruption by Technology and FinTech Online and Mobile Delivery of Services is Essential Evaluating Market Changes ~ Need to Adapt Changing Consumer Behavior Requirements for Instant Service to Fulfill
Slide 10: Evaluating Branch Network
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 10 Evaluating Branch Network ◼ Customer engagement / loyalty ◼ Good credit quality ◼ Generally low-cost deposits ◼ Employees focused on customers / clients Strengths of Existing Network Areas for Improvement ◼ Technological advancements ◼ Need
Slide 11: Total Operational Efficiency Initiative
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 11 Total Operational Efficiency Initiative Management has identified six branches for consolidation while exploring the divestiture of others: ◼ Monongahela, PA ◼ Perryopolis, PA ◼ Pioneer, PA ◼ Southpointe, PA ◼ Bellaire, OH ◼ Wellsburg, WV A
Slide 12: Branch Optimization Efforts Expected Costs / Savings
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 12 Branch Optimization Efforts Expected Costs / Savings Anticipates non-recurring pre-tax costs during 2021 of up to $6.1 million. This estimated cost excludes the impact of any premium from sale of branches, and assumes no salvage value, leas
Slide 13: Management team
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 13 ◼ President & CEO; appointed in August 2020 ◼ Accomplished bank executive with over 30 years of experience ◼ Previously Chief Credit Officer at First Bank, a privately held $6 Billion bank located in St. Louis, Missouri. Jamie Prah ◼ Execut
Slide 14: First Quarter 2021 Highlights
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 14 First Quarter 2021 Highlights Solid Profitability and Growth in Deposits During Period When Company Implemented Optimization Efforts (comparison to December 31, 2020) Net Income Loans and Deposits Tangible Book Value(1) Q1 2021 net income w
Slide 15: Financial Update – Q1 2021
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 15 Financial Update – Q1 2021 2017 FY 2018 FY 2019 FY 2020 FY 2020 Q1 2021 Q1 ($000s except per share) 12/31/17 12/31/18 12/31/19 12/31/20 3/31/20 3/31/21 Balance Sheet Total Assets $934,486 $1,281,701 $1,321,537 $1,416,720 $1,313,173 $1,476,8
Slide 16: Key Financial Metrics
Key Financial Metrics
Slide 17: Operating Initiatives Lead to Consistent Growth
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 17 ▪ Continuing to drive organic loan growth without sacrificing credit underwriting standards ▪ Providing personalized customer engagement that leads to repeat and referral business ▪ Focus on growing core deposits ▪ New competitive core syst
Slide 18: Strong Expertise in Commercial Real Estate
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 18 Commercial & Industrial 12% Real Estate- Construction 7% Real Estate- Commercial 36% Real Estate- Residential 33% Consumer 11% Other 1% Strong Expertise in Commercial Real Estate Loan Growth Trend and CRE Loan Composition (as of March 31, 2
Slide 19: Total Deposits and Composition
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 19 Non-Interest Bearing Demand Deposits 29% Interest Bearing Demand Accounts 22% Money Market Accounts 16% Savings Accounts 19% Time Deposits 14% Deposit Composition Total Deposits and Composition (as of March 31, 2021) $679.3 $698.2 $773.3 $1
Slide 20: Asset Quality Trends
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 20 Asset Quality Trends (as of March 31, 2021) 0.02% -0.01% 0.03% 0.39% 0.02% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 NCOs (Recoveries) / Average Loans 0.31% 0.31% 1.15% 1.04%
Slide 21: Revenue Diversification
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 21 Revenue Diversification ◼ Fee income sources comprised approximately 16.6% of 2020 total operating revenue; provides stable revenue stream ◼ The Exchange Underwriters’ business segment increased approximately 8% on a year-to-date basis in 2
Slide 22: Net Income and Adjusted Net Income – Last Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 22 Net Income (Loss) and Adjusted Net Income – Last 5 Quarters $773 $2,903 $3,079 $2,845 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 ($ in 000s) Net Income ($17,395) $773 $2,903 $1,844
Slide 23: EPS and Adjusted EPS – Last Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 23 EPS (Loss) and Adjusted EPS – Last 5 Quarters $0.14 $0.54 $0.57 $0.52 -$0.1 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 EPS ($3.22) $0.14 $0.54 $0.34 $0.61 $0.52 $0.0 $0.2 $0.3 $0.5 $0.6 $0.8 Q1 2020
Slide 24: Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 24 Net Interest Margin (FTE)(1) 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Q1 2020 Q2 2021 Q3 2020 Q4 2020 Q1 2021 Yield on Earning Assets Net Interest Margin Cost of Funds 3.05% 0.44% 3.36% (1) Non-GAAP financial metric. Plea
Slide 25: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 25 Adjusted Efficiency Ratio(1) 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 70.06% (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. 66.18%
Slide 26: Adjusted ROAA and ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 26 Adjusted Return on Average Assets – ROAA(1) 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 8.54% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Slide 27: Strong and Improving Capital Ratios
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 27 Strong and Improving Capital Ratios 11.60% 11.60% 12.85% 8.23% 11.79% 11.79% 13.04% 7.81% 11.85% 11.85% 13.10% 7.87% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Common Equity Tier 1 Capital (to Risk Weighted Assets) Tier 1 Capital (t
Slide 28: Moving Forward – Building a Stronger Community
Moving Forward – Building a Stronger Community Investing for the Future Adaptive to New Consumer Expectations Engaging with Loyal Customers and Winning New Ones
Slide 29: Contact Information
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 29 Contact Information Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 Investor Relations Adam Prior Phone: (212) 836-9606 Email: aprior@equityny.com NASDAQ Capital Market: CBFV 100 N. Market Str
Slide 30: Appendix
Appendix
Slide 31: Selected Consolidated Financial Information – Financial Condition
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 31 Selected Consolidated Financial Information Selected Financial Condition Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Total Assets $ 1,476,821 $ 1,416,720 $ 1,392,876 $ 1,407,152 $ 1,313,173 Cash and Due From Banks 230,000 160,911 112,169
Slide 32: Selected Consolidated Financial Information – Operating Data
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 32 Selected Consolidated Financial Information Three Months Ended Selected Operating Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Interest and Dividend Income Loans, Including Fees $ 10,146 $ 10,833 $ 10,709 $ 10,577 $ 10,764 Securities: Taxa
Slide 33: Per Common Share Data
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 33 Per Common Share Data (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. Three Months Ended Per Common Share Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Dividends Per Common Shar
Slide 34: Selected Financial, Asset Quality and Capital Ratios
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 34 Selected Financial Ratios /Asset Quality Ratios / Capital Ratios Three Months Ended Selected Financial Ratios (2) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 Return on Average Assets 0.81 % 0.87 % (4.90) % 0.85 % 0.24 % Adjusted Return on Aver
Slide 35: Average Balances and Yields
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 35 Average Balances and Yields (1) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (2) Net interest rate spread represents the difference between the weighted average yield on intere
Slide 36: Non-GAAP: Adjusted Net Income, EPS, ROAA, ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 36 Non-GAAP Financial Measures: Adjusted Net Income, EPS, ROAA, ROAE Three Months Ended 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (Loss) (GAAP) $ 2,845 $ 3,079 $ (17
Slide 37: Non-GAAP: Tangible Common Equity and Tangible Book Value
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 37 Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands, except share and per
Slide 38: Non-GAAP: Return on Average Tangible Common Equity
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 38 Non-GAAP Financial Measures: Return on Average Tangible Common Equity Three Months Ended Full Year March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2020 December 31, 2019 December 31, 2018 Decemb
Slide 39: Non-GAAP: Net Interest Rate Spread and Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 39 Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE) Three Months Ended Full Year 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Interest Income per C
Slide 40: Non-GAAP: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 40 Non-GAAP Financial Measures: Adjusted Efficiency Ratio Three Months Ended Full Year 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2020 12/31/2019 12/31/2018 12/31/2017 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest ex
Slide 41: Non-GAAP: Pre-Tax Pre-Provision Return on Average Assets
CB Financial Services, Inc. (Nasdaq: CBFV) May 2021 Page 41 Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets Three Months Ended Full Year 3/31/21 3/31/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Net Income (Loss) Before Income Tax Expense (Benefit) (GAAP)
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