Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Q3 2021 Earnings Presentation
44 slides from Cb Financial Services's earnings presentation, Oct 28, 2021
Slide 1: Investor Presentation October 2021
Investor Presentation October 2021
Slide 2: Forward-Looking Statements
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 2 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 suc
Slide 3: At a Glance – CB Financial Services, Inc.
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 3 At a Glance – CB Financial Services, Inc. Shareholder Information Share Price $24.22 Shares Outstanding 5.3M Public Float 4.9M Market Cap $128.4M Total Stockholder’s Equity $131.0M Book Value per Share (GAAP) $24.57 Tangible Book Value p
Slide 4: Community Bank Mission Statement
CB Financial Services, Inc. (Nasdaq: CBFV) October 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
Slide 5: Third Quarter 2021: Goals and Accomplishments
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 5 Third Quarter 2021: Goals and Accomplishments 01 03 02 Well-positioned to capitalize on continued U.S. housing market recovery Continued Progress on Optimization Efforts – Significant reduction in non-interest expense and salaries while
Slide 6: Third Quarter 2021 Highlights
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 6 Third Quarter 2021 Highlights Solid Profitability During Optimization Efforts (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. (comparison
Slide 7: Branch Optimization and Operational Efficiency Efforts
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 7 Branch Optimization and Operational Efficiency Efforts Expected Costs / Savings Expected non-recurring pre- tax costs during 2021 of up to $7.9 million. This estimated cost excludes the impact of the expected premium from sale of branche
Slide 8: Branch Optimization and Operational Efficiency Initiative
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 8 Branch Optimization and Operational Efficiency Initiative Management has consolidated six branches and in process of divesting two others: Consolidation • Monongahela, PA • Perryopolis, PA • Pioneer, PA • Southpointe, PA • Bellaire, OH •
Slide 9: Increasing Efficiency In our Branch Network
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 9 Increasing Efficiency In our Branch Network ◦ Reduced overall branch locations from 24 to 14 over the past 6 quarters ◦ No deterioration in deposits ◦ Gaining traction in reduction of non- interest expense and salaries Branch Optimizatio
Slide 10: Divestiture of Two West Virginia Branches on Track to Close in Q4 2021
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 10 Divestiture of Two West Virginia Branches on Track to Close in Q4 2021 Purchase and Assumption Agreement with Citizens Bank of West Virginia, Inc. Citizens has agreed to assume certain deposit liabilities and to acquire certain loans, a
Slide 11: Revenue Generating Initiatives
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 11 Revenue Generating Initiatives GOAL: Leverage strong brand recognition and lending relationships to support organic loan growth and enhance revenue generating potential in CB’s core markets As part of optimization initiatives and follow
Slide 12: Strategic priorities and customer service
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 12 • 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
Slide 13: Diversified Business
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 13 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
Slide 14: Pittsburgh MSA market overview
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 14 ▪ 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) ▪ Hig
Slide 15: Leveraging a Rich History and Community Presence
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 15 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 Commu
Slide 16: Evaluating Market Changes ~ Need to Adapt
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 16 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 Fu
Slide 17: Management team
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 17 • 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 • Ex
Slide 18: Financial Update – Q3 2021
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 18 Financial Update – Q3 2021 2017 FY 2018 FY 2019 FY 2020 FY Q3 2020 Q3 2021 ($000s except per share) 12/31/17 12/31/18 12/31/19 12/31/20 9/30/20 9/30/21 Balance Sheet Total Assets $ 934,486 $ 1,281,701 $ 1,321,537 $ 1,416,720 $ 1,392,876
Slide 19: Key Financial Metrics
Key Financial Metrics
Slide 20: Operating Initiatives Have Led to Consistent Growth: Total Assets
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 20 ◦ 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
Slide 21: Loan Growth Trend and CRE Loan Composition
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 21 Loan Growth Trend and CRE Loan Composition (as of September 30, 2021) ($ in m ill io ns ) Total Loans (Including Held for Sale) $683.4 $681.9 $744.4 $912.9 $952.5 $1,044.8 $1,019.0 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 0
Slide 22: Total Deposits and Deposit Composition
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 22 Total Deposits and Deposit Composition (as of September 30, 2021) ($ in m ill io ns ) Total Deposits (Including Held for Sale) $679.3 $698.2 $773.3 $1,086.7 $1,118.4 $1,224.6 $1,287.8 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/2
Slide 23: Asset Quality Trends
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 23 Asset Quality Trends NCOs (Recoveries) / Average LoansNon-Current Loans / Total Loans Allowance for Loan Losses to Total Loans NPAs / Total Assets 1.15% 1.04% 1.03% 1.26% 0.85% 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 0.00% 0.20% 0.
Slide 24: Revenue Diversification
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 24 Revenue Diversification • Non interest income sources comprised approximately 22.3% of total operating revenue for the first nine months of 2021; provides stable revenue stream • The Exchange Underwriters’ business segment continued its
Slide 25: Net Income and Adjusted Net Income – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 25 Net Income (Loss) and Adjusted Net Income(1) – Last 5 Quarters (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. Net (Loss) Income $ in 00
Slide 26: EPS - Diluted and Adjusted EPS – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 26 EPS - Diluted and Adjusted EPS - Diluted(1) – Last 5 Quarters (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. EPS - Diluted (3.22) 0.57
Slide 27: Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 27 Net Interest Margin (FTE)(1) (1) Net Interest Margin (GAAP) was 3.19%, 3.21%, 3.04%, 2.84%, and 2.88%, respectively, for the same time periods. 3.59% 3.11% 3.21% 2.89% 0.54% 0.33% Yield on Earning Assets Net Interest Margin Cost of Fund
Slide 28: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 28 Adjusted Efficiency Ratio(1) (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure. Efficiency Ratio (GAAP) was 230.11%, 72.51%, 71.44%, 112.91
Slide 29: Adjusted ROAA and Adjusted ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 29 Adjusted Return on Average Assets – ROAA(1) Adjusted Return on Average Equity – ROAE(1) (1) Refer to Non-GAAP Financial Measures in the Appendix for the calculation of the measure and reconciliation to the most comparable GAAP measure.
Slide 30: Strong Capital Ratios (Community Bank)
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 30 Strong Capital Ratios (Community Bank) 11.62% 11.62% 12.88% 7.63% 11.79% 11.79% 13.04% 7.81% 11.53% 11.53% 12.78% 7.38% September 30, 2020 December 31, 2020 September 30, 2021 Common Equity Tier 1 Capital (to Risk Weighted Assets) Tier
Slide 31: 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 32: Contact Information
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 32 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
Slide 33: Appendix
Appendix
Slide 34: Selected Consolidated Financial Information
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 34 Selected Consolidated Financial Information (Dollars in thousands) (Unaudited) Selected Financial Condition Data 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 ASSETS Cash and Due From Banks $ 173,523 $ 172,010 $ 230,000 $ 160,911 $ 112,169 S
Slide 35: Selected Consolidated Financial Information – Operating Data
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 35 Selected Consolidated Financial Information Three Months Ended Nine Months Ended Selected Operating Data 09/30/21 06/30/21 03/31/21 12/31/20 09/30/20 09/30/21 09/30/20 Interest and Dividend Income Loans, Including Fees 9,718 9,936 10,14
Slide 36: Per Common Share Data
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 36 Per Common Share Data (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. Three Months Ended Nine Months Ended Per Common Share Data 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 9/3
Slide 37: Selected Financial Ratios / Asset Quality Ratios / Capital Ratios
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 37 Selected Financial Ratios /Asset Quality Ratios / Capital Ratios Three Months Ended Nine Months Ended Selected Financial Ratios (2) 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 9/30/21 9/30/20 Return on Average Assets 0.54 % (0.06) % 0.81 %
Slide 38: Average Balances and Yields
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 38 Average Balances and Yields (1) Annualized based on three months ended results. (2) Net of allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale. (3) Includes Deposits Held for Sale. (4) Refer
Slide 39: Non-GAAP: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 39 Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and Adjusted ROAE Three Months Ended 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (
Slide 40: Non-GAAP: Tangible Common Equity and Tangible Book Value per Share
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 40 Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands, except share and
Slide 41: Non-GAAP: Return on Average Tangible Common Equity
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 41 Non-GAAP Financial Measures: Return on Average Tangible Common Equity Three Months Ended Full Year 9/30/21 9/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Net Income (Loss) (GAAP) $ 1,983 $ (17,395) $ (10,640) $ 14,32
Slide 42: Non-GAAP: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 42 Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE) Three Months Ended Full Year 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Interest Income p
Slide 43: Non-GAAP: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 43 Non-GAAP Financial Measures: Adjusted Efficiency Ratio Three Months Ended Full Year 9/30/21 6/30/21 3/31/21 12/31/20 9/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest expense (GAAP) $
Slide 44: Non-GAAP: Pre-Tax Pre-Provision Return on Average Assets
CB Financial Services, Inc. (Nasdaq: CBFV) October 2021 Page 44 Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets Three Months Ended Full Year 9/30/21 9/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Net Income (Loss) Before Income Tax Expense (Benefit) (G
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