Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Investor Presentation (July 2021)
43 slides from Cb Financial Services's investor presentation, Jul 29, 2021
Slide 1: Moving Forward – Building a Stronger Community
Moving Forward – Building a Stronger Community Investor Presentation July 2021
Slide 2: Forward-Looking Statements
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 2 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-l
Slide 3: At a Glance – CB Financial Services, Inc.
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 3 At a Glance – CB Financial Services, Inc. Shareholder Information Share Price $23.00 Shares Outstanding 5.4M Public Float 4.9M Market Cap $124.2M Total Stockholder’s Equity $132.5M Book Value per Share (GAAP) $24.50 Tangible Book Value per
Slide 4: Community Bank Mission Statement
CB Financial Services, Inc. (Nasdaq: CBFV) July 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
Slide 5: Second Quarter 2021: Goals and Accomplishments
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 5 Second Quarter 2021: Goals and Accomplishments 01 03 02 Well-positioned to capitalize on continued U.S. housing market recovery Continued Progress on Optimization Efforts – Consolidation of 6 branch locations – Finalized Purchase and Assump
Slide 6: Second Quarter 2021 Highlights
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 6 Second 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 t
Slide 7: Strategic priorities and customer service
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 7 • 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 8: Diversified Business
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 8 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 Insur
Slide 9: Pittsburgh MSA market overview
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 9 ▪ 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
Slide 10: Leveraging a Rich History and Community Presence
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 10 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 Communit
Slide 11: Evaluating Market Changes ~ Need to Adapt
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 11 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 Fulfi
Slide 12: Branch Optimization and Operational Efficiency Initiative
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 12 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 • W
Slide 13: Branch Optimization and Operational Efficiency Efforts Expected Costs / Savings
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 13 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 branches (
Slide 14: Sale of Two West Virginia Branches
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 14 Sale of Two West Virginia Branches Purchase and Assumption Agreement with Citizens Bank of West Virginia, Inc. Citizens has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal
Slide 15: Revenue Generating Initiatives
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 15 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 following
Slide 16: Management team
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 16 • 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 • Execu
Slide 17: Financial Update – Q2 2021
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 17 Financial Update – Q2 2021 2017 FY 2018 FY 2019 FY 2020 FY Q2 2020 Q2 2021 ($000s except per share) 12/31/17 12/31/18 12/31/19 12/31/20 6/30/20 6/30/21 Balance Sheet Total Assets $ 934,486 $ 1,281,701 $ 1,321,537 $ 1,416,720 $ 1,407,152 $
Slide 18: Key Financial Metrics
Key Financial Metrics
Slide 19: Operating Initiatives Have Led to Consistent Growth
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 19 ◦ 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 sys
Slide 20: Loan Growth Trend and CRE Loan Composition
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 20 Loan Growth Trend and CRE Loan Composition (as of June 30, 2021)
Slide 21: Total Deposits and Deposit Composition
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 21 Total Deposits and Deposit Composition (as of June 30, 2021)
Slide 22: Asset Quality Trends
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 22 Asset Quality Trends NCOs (Recoveries) / Average LoansNon-Current Loans / Total Loans Allowance for Loan Losses to Total Loans NPAs / Total Assets
Slide 23: Revenue Diversification
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 23 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
Slide 24: Net (Loss) Income and Adjusted Net Income – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 24 Net (Loss) Income 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.
Slide 25: EPS - Diluted and Adjusted EPS - Diluted – Last 5 Quarters
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 25 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.
Slide 26: Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 26 Net Interest Margin (FTE)(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. Net Interest Margin (GAAP) was 3.28%, 3.19%, 3.21%, 3.04%, and
Slide 27: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 27 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 69.94%, 230.11%, 72.51%, 71.44%, a
Slide 28: Adjusted ROAA and Adjusted ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 28 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. ROA
Slide 29: Strong Capital Ratios (Community Bank)
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 29 Strong Capital Ratios (Community Bank)
Slide 30: Investing for the Future
Moving Forward – Building a Stronger Community Investing for the Future Adaptive to New Consumer Expectations Engaging with Loyal Customers and Winning New Ones
Slide 31: Contact Information
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 31 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 St
Slide 32: Appendix
Appendix
Slide 33: Selected Financial Condition Data
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 33 Selected Financial Condition Data 6/30/21 3/31/21 12/31/20 9/30/20 6/30/20 ASSETS Cash and Due From Banks $ 172,010 $ 230,000 $ 160,911 $ 112,169 $ 131,403 Securities 208,472 142,156 145,400 158,956 148,648 Loans Held for Sale 11,409 — — —
Slide 34: Selected Consolidated Financial Information
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 34 Selected Consolidated Financial Information Three Months Ended Six Months Ended Selected Operating Data 06/30/21 03/31/21 12/31/20 09/30/20 06/30/20 06/30/21 06/30/20 Interest and Dividend Income Loans, Including Fees 9,936 10,146 10,833 1
Slide 35: Per Common Share Data
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 35 Per Common Share Data (1) Non-GAAP financial metric. Please see the appendix to view this presentation for Non-GAAP reconciliations. Three Months Ended Six Months Ended Per Common Share Data 6/30/21 3/31/21 12/31/20 9/30/20 6/30/20 6/30/21
Slide 36: Selected Financial Ratios / Asset Quality Ratios / Capital Ratios
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 36 Selected Financial Ratios /Asset Quality Ratios / Capital Ratios Three Months Ended Six Months Ended Selected Financial Ratios (2) 06/30/21 03/31/21 12/31/20 09/30/20 06/30/20 6/30/21 6/30/20 Return on Average Assets (0.06)% 0.81 % 0.87 %
Slide 37: Average Balances and Yields
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 37 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 inter
Slide 38: Non-GAAP: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and ROAE
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 38 Non-GAAP Financial Measures: Adjusted Net Income, Adjusted EPS, Adjusted ROAA and Adjusted ROAE Three Months Ended 06/30/21 03/31/21 12/31/20 09/30/20 06/30/20 (Dollars in thousands, except share and per share data) (Unaudited) Net (Loss)
Slide 39: Non-GAAP: Tangible Common Equity and Tangible Book Value per Share
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 39 Non-GAAP Financial Measures: Tangible Common Equity, Tangible Book Value per Share and Tangible Common Equity to Tangible Assets 6/30/21 3/31/21 12/31/20 9/30/20 6/30/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands, except share and pe
Slide 40: Non-GAAP: Return on Average Tangible Common Equity
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 40 Non-GAAP Financial Measures: Return on Average Tangible Common Equity Three Months Ended Full Year 6/30/21 6/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Net (Loss) Income (GAAP) $ (223) $ 2,903 $ (10,640) $ 14,327 $ 7,
Slide 41: Non-GAAP: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE)
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 41 Non-GAAP Financial Measures: Net Interest Rate Spread (FTE) and Net Interest Margin (FTE) Three Months Ended Full Year 6/30/21 3/31/21 12/31/20 9/30/20 6/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Interest Income per
Slide 42: Non-GAAP: Adjusted Efficiency Ratio
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 42 Non-GAAP Financial Measures: Adjusted Efficiency Ratio Three Months Ended Full Year 6/30/21 3/31/21 12/31/20 9/30/20 6/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Efficiency Ratio (GAAP) Noninterest expense (GAAP) $ 13
Slide 43: Non-GAAP: Pre-Tax Pre-Provision Return on Average Assets
CB Financial Services, Inc. (Nasdaq: CBFV) July 2021 Page 43 Non-GAAP Financial Measures: Pre-Tax Pre-Provision Return on Average Assets Three Months Ended Full Year 6/30/21 6/30/20 12/31/20 12/31/19 12/31/18 12/31/17 (Dollars in thousands) Net (Loss) Income Before Income Tax Expense (Benefit) (GAAP
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