Slide 1: Q2 2024 Investor Presentation
The Q2 2024 Investor Presentation should be read in conjunction with the Earnings Release furnished in Exhibit 99.1 to Form 8K filed with the SEC on July 24, 2024.
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 12 full-service branch offices and two loan production offices in southwestern Pennsylvania and northern West Virginia. • NASDAQ: CBFV T
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 2024 are improving efficiencies and protect their fina
Slide 5: 2024 Macro Outlook
2024 Macro Outlook Expectations for the balance of 2024 are marked by 'Uncertainty' as potential future interest rate changes by the Federal Reserve and industry-specific developments exert a resulting mixed impact on CB Item Comment Market interest rates remain elevated resulting in increased depos
Slide 6: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights
Slide 7: Q2 2024 Highlights
Q2 2024 Highlights Balance Sheet & Asset Quality (as of June 30, 2024 unless otherwise noted) • Steady loan portfolio. Net loans ($1.07 billion) decreased 1.6% from March 31, 2024 and 2.9% from December 31, 2023 driven by exit of indirect lending. • Strong deposit base. Deposits ($1.35 billion) incr
Slide 8: Q2 2024 Results Overview
Q2 2024 Results Overview Financial Highlights Change ($000s except per share) Q2 2024 Q1 2024 Q2 2023 Quarterly Highlights(3) Balance Sheet Total Loans (Net Allowance) $ 1,069,167 $ (17,594) $ (21,321) Balance Sheet: Total Deposits 1,349,768 87,274 86,453 • Loans decreased $17.6 million. Income Stat
Slide 9: Financial Trends - Balance Sheet
Financial Trends - Balance Sheet Total Assets Total Net Loans $1,600 Net Loans Yield on Loans $1,560 $1,200 6.00% $1,090 $1,092 $1,101 $1,500 $1,087 $1,473 $1,069 in millions $1,456 5.50% in millions $1,433 $1,000 $1,399 $1,400 5.00% $1,300 $800 4.50% 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 6/30/23
Slide 10: Financial Trends - Earnings and Profitability
Financial Trends - Earnings and Profitability Net Income / PPNR (non-GAAP) Earnings Per Share (EPS) Net Income PPNR $3.00 $20,000 $2.52 $16,889 $15,000 $2.00 $12,966 in thousands $10,000 $1.00 $0.82 $5,079 $5,000 $3,888 $3,642 $4,196 $0.54 $0.52 $0.51 $2,757 $2,672 $2,650 $3,174 $— $— Q2 2023 Q3 202
Slide 11: Financial Trends - Earnings and Profitability
Financial Trends - Earnings and Profitability Total Revenue Highlights - Noninterest Income Net Interest Income Noninterest Income $15,000 • Prior to the sale of Exchange Underwriters ("EU"), $16,518 noninterest income for Q2, Q3 and Q4 2023 included $1,916 $2,269 $2,412 $688 insurance commissions o
Slide 12: Deposit Composition / Characteristics
Deposit Composition / Characteristics
Slide 13: Deposit Mix and Cost
Deposit Mix and Cost Deposit Mix Cost of Interest-Bearing Deposits 5.00% 6/30/23 25.0% 29.7% 14.7% 17.2% 13.4% 4.50% 4.00% 3.50% 9/30/23 24.7% 28.9% 15.3% 16.7% 14.4% Noninterest-Bearing 3.00% Interest-Bearing 2.50% 12/31/23 21.9% 28.6% 15.9% 15.4% 18.2% Money Market Accounts Savings Accounts 2.00%
Slide 14: Secure Deposit Base
Secure Deposit Base • In total, 77.6% of client deposits (non- brokered) are FDIC insured or collateralized with investment securities as of June 30, 2024. • Uninsured client deposits consist of business Uninsured, 22.4% & retail deposits of 15.6% and 6.9% of total deposits, respectively. FDIC Insur
Slide 15: Strong Liquidity Position
Strong Liquidity Position Highlights Other Capacity • Cash & Cash Equivalents totaled $142.6 million, $50.0 million Cash or 9.1% of total assets. $142.6 million • Investment Securities totaled $268.8 million, with $171.1 million utilized as collateral for public fund deposits. All securities are cla
Slide 16: Loan Composition / Characteristics
Loan Composition / Characteristics
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition As of 6/30/2024 Highlights Consumer 8% Other 3% • Loans decreased $31.5 million, or 2.9%, from December 31, 2023 due primarily from exit of indirect Commercial & Real Estate- Residential 32% Industrial 10% lending. • Year-to-date loan production totaled $64.0 million Real
Slide 18: Commercial Loan Portfolio Detail
Commercial Loan Portfolio Detail C&I and CRE Loans by Industry Highlights 11.0% • CRE loans represent 42.5% of our total loan portfolio. 1.2% 26.9% • Limited exposure to office space. 1.4% Retail Space Multifamily • 24.9% of CRE loans are owner occupied. 1.4% 5.8% Warehouse Space • Non-Owner Occupie
Slide 19: Residential and Consumer Detail
Residential and Consumer Detail Consumer Lending Portfolio - $433.7M Highlights • Residential loans represent 31.9% of our total loan portfolio. 19.0% • 60.5% of residential loans carried an LTV of less 70%, at the time of underwriting. 1-4 Family • Indirect auto loans represent 7.5% of our total lo
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 $125 0.08% $4,500 $4,095 0.40% $109 $96 $100 $3,286 $75 $67 0.04% $3,000 0.32% $2,240 $2,189 $50
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 16.00% 16.00% 14.50% 14.62% 14.50% 14.62% 14.00% 13.64%
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 and active stock repurchase plan Deploying Technology to I
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 and quality product offerings which builds full relationships with our clients ◦ Utilize technology investments to
Slide 26: Contact Information
Contact Information FDIC Headquarters: Company Contact 100 N. Market Street John H. Montgomery Carmichaels, PA 15320 President and Chief Executive Officer Phone: (724) 223-8317 Corporate Center: 2111 North Franklin Drive, Suite 200 Washington, PA 15301 CB Financial Services, Inc. (Nasdaq: CBFV) July