Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Q2 2023 Earnings Presentation
26 slides from Cb Financial Services's earnings presentation, Jul 28, 2023
Slide 1: Q2 2023 Investor Presentation
The Q2 2023 Investor Presentation should be read in conjunction with Earnings Release furnished in Exhibit 99.1 to Form 8K filed with the SEC on July 28, 2023.
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 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 ar
Slide 3: CB Financial Services, Inc. - Corporate Overview
CB Financial Services, Inc. - Corporate Overview • Holding Company for Community Bank (Carmichaels, PA), serving the community since 1901 • Community Bank operates 13 full-service branch offices and two loan production offices in southwestern Pennsylvania and northern West Virginia and owns Exchange
Slide 4: Meet CB Financial Services
Meet CB Financial Services Our Mission Statement Diversified Business Model "With a differentiated model and approach "We partner with individuals, businesses to risk management, our Operational Goals and communities to realize their dreams, for 2023 are not impacted by recent bank protect their fin
Slide 5: 2023 Macro Outlook
2023 Macro Outlook Expectations for the balance of 2023 are marked by 'Uncertainty' as potential future interest rate changes by the Federal Reserve, a potential recession, and industry- specific developments exert a resulting mixed impact on CB Item Comment Market interest rates began increasing du
Slide 6: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights
Slide 7: Q2 2023 Highlights
Q2 2023 Highlights Balance Sheet & Asset Quality (as of June 30, 2023 unless otherwise noted) • Robust loan growth. Net loans ($1.09 billion) increased 2.7% from March 31, 2023 and 5.1% from December 31, 2022. • Stable deposit base. Deposits ($1.26 billion) decreased 1.4% from March 31, 2023 and 0.4
Slide 8: Q2 2023 Results Overview
Q2 2023 Results Overview Financial Highlights Change ($000s except per share) Q2 2023 Q1 2023 Q2 2022 Quarterly Highlights(3) Balance Sheet Total Loans (Net Allowance) $ 1,090,488 $ 28,893 $ 75,352 Balance Sheet: Total Deposits 1,263,315 (18,205) 48,125 • Loans increased $28.9 million. Income Statem
Slide 9: Financial Trends - Balance Sheet
Financial Trends - Balance Sheet Total Assets Total Net Loans $1,500 Net Loans Yield on Loans $1,100 $1,090 5.00% $1,450 $1,062 $1,431 $1,433 $1,426 $1,037 $1,030 $1,409 in millions $1,015 in millions $1,400 $1,386 $1,000 4.00% $1,350 $1,300 $900 3.00% 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 6/30/2
Slide 10: Financial Trends - Earnings and Profitability
Financial Trends - Earnings and Profitability Net Income / PPNR (non-GAAP) Earnings Per Share (EPS) Net Income PPNR $1.00 $6,000 $0.81 $0.81 $5,228 $5,365 $0.77 $4,927 $0.75 $4,152 $4,156 $3,858 $3,929 $3,948 $4,000 $0.54 in thousands $0.50 $2,757 $2,000 $0.25 $118 $0.02 $— $— Q2 2022 Q3 2022 Q4 202
Slide 11: Financial Trends - Earnings and Profitability
Financial Trends - Earnings and Profitability Total Revenue Q2 2023 - Noninterest Income Mix (in 000's) Net Interest Income Noninterest Income $15,000 $2,360 $2,810 $2,739 $2,269 $1,511 $2,105 $11,866 $10,000 $11,583 $11,120 66.6% $11,015 $10,163 $309 Insurance Commissions 13.6% Other Income $5,000
Slide 12: Deposit Composition / Characteristics
Deposit Composition / Characteristics
Slide 13: Deposit Mix and Cost
Deposit Mix and Cost As of 6/30/2023 Cost of Interest-Bearing Deposits 3.50% 13.4% 3.00% 2.50% 25.0% Non-Interest Bearing Demand 2.00% 17.2% Interest Bearing Demand Money Market Accounts 1.50% Savings Accounts Time Deposits 1.00% 14.7% 29.7% 0.50% —% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Deposit C
Slide 14: Secure Deposit Base
Secure Deposit Base • In total, 77.6% of deposits are FDIC insured or collateralized with investment securities as of June 30, 2023. This compares to 75.0% as of March 31, 2023. • Uninsured deposits consist of business & Uninsured, 22.4% retail deposits of 16.6% and 5.8% of total deposits, respectiv
Slide 15: Strong Liquidity Position
Strong Liquidity Position Highlights Other Capacity Cash $50.0 million $78.1 million • Cash & Cash Equivalents totaled $78.1 million, or 5.5% Investments of total assets. $10.1 million • Investment Securities totaled $181.4 million, with Fed Capacity $171.4 million utilized as collateral for municip
Slide 16: Loan Composition / Characteristics
Loan Composition / Characteristics
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition As of 6/30/2023 Highlights Other 2.0% Consumer 12.2% Commercial & • Loans increased $53.4 million, or 5.1%, from Industrial 9.3% December 31, 2022. • Loan growth was driven by increases in C&I and CRE Real Estate- loans, including the purchase of $8.9 million in Real Estat
Slide 18: Commercial Real Estate Loan Portfolio Detail
Commercial Real Estate Loan Portfolio Detail C&I and CRE Loans by Industry Highlights 11.0% • CRE loans represent 41.6% of our total loan portfolio. 1.7% 26.8% • Limited exposure to office space. 2.4% Retail Space Multifamily • 25.9% of CRE loans are owner occupied. 2.6% 4.1% Warehouse Space • Non-O
Slide 19: Residential and Consumer Detail
Residential and Consumer Detail Consumer Lending Portfolio - $473.3M Highlights 27.1% • Residential loans represent 30.7% of our total loan portfolio. • 57.0% of residential loans carried an LTV of less 70%, at the time of underwriting. 1-4 Family • Indirect auto loans represent 11.6% of our total l
Slide 20: Asset Quality and Capital Ratios
Asset Quality and Capital Ratios
Slide 21: Asset Quality Trends
Asset Quality Trends Net Charge-Offs (Recoveries) / Average Loans Noncurrent Loans / Total Loans Net Charge Offs (Recoveries) NCO's (Recoveries)/ Avg Loans Noncurrent Loans (000's) Noncurrent/Total Loans $3,000 2.00% $6,000 $5,413 0.60% $2,546 $4,030 $3,998 $4,095 $3,895 $1,500 1.00% $4,000 0.50% $3
Slide 22: Capital Ratios (Bank Only)
Capital Ratios (Bank Only) Common Equity Tier 1 Capital (to Risk Weighted Assets) Tier 1 Capital to Risk Weighted Assets Common Equity Tier 1 Capital Adequately Capitalized Well Capitalized Tier 1 Capital Adequately Capitalized Well Capitalized 14.00% 14.00% 12.33% 12.60% 12.54% 12.60% 12.54% 11.83%
Slide 23: Conclusions
Conclusions
Slide 24: Investment Summary
Investment Summary Market Presence with Brand Recognition Seasoned Executive Serving Stable Southwestern PA & Leadership Ohio River Valley markets Proven experience through all economic cycles Rewarding Shareholders Stable quarterly dividend Deploying Technology to Investing for Growth Enhance Clien
Slide 25: Concluding Thoughts
Concluding Thoughts ◦ Community bank model is highly-differentiated compared with large regional banks experiencing recent regulatory issues ◦ Intense focus on sales and service culture which builds full relationships with our customers ◦ Utilize technology investments to enhance speed of process wh
Slide 26: Contact Information
Contact Information Company Contact John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400 NASDAQ Global Market: CBFV Investor Relations 100 N. Market Street Jeremy Hellman, Vice President Carmichaels, PA 15320 The Equity Group, Inc. Phone: (724) 966-5041 Phone: (212) 836-962
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