Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Shareholder Meeting (June 2018)
31 slides from Cb Financial Services's shareholder meeting presentation, Jun 20, 2018
Slide 1: 2018 Annual Shareholders' Meeting of CB Financial Services, Inc.
1 2018 Annual Shareholders' Meeting of CB Financial Services, Inc. The holding company of
Slide 2: Barron P. ("Pat") McCune, Jr. Vice Chairman & CEO
2 Barron P. (“Pat”) McCune, Jr. Vice Chairman & CEO
Slide 3: Ralph J. Sommers, Jr. Chairman of the Board of Directors
3 Ralph J. Sommers, Jr. Chairman of the Board of Directors
Slide 4: Barron P. ("Pat") McCune, Jr. Vice Chairman & CEO
4 Barron P. (“Pat”) McCune, Jr. Vice Chairman & CEO
Slide 5: Patrick G. O'Brien President
5 Patrick G. O’Brien President
Slide 6: Shareholder Presentation June 2018
6 Shareholder Presentation June 2018
Slide 7: Forward-Looking Statements
7 Forward - Looking Statements Statements contained in this 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”). Such forward - looking statements are subject to significant
Slide 8: CB Financial Services, Inc. 2017 Financial Results & Performance Metrics
8 CB Financial Services, Inc. 2017 Financial Results & Performance Metrics
Slide 9: 2017 Financial Results
9 2017 Financial Results ▪ 2017 was a solid year of growth and performance ▪ Financial results were impacted by the resources devoted to the merger with First West Virginia Bancorp (“FWVB”) and Progressive Bank (“PB”) ▪ The Definitive Agreement with FWVB and PB was announced on November 17, 2017 ▪ 2
Slide 10: Peer Comparison December 31, 2017 - Performance ratios
Peer Comparison December 31, 2017 CB Financial Services, Inc. Peer group Performance ratios (%) Yield on earning assets 3.95% 3.92% Cost of funding earning assets 0.41 0.58 Net interest spread 3.53 3.34 Noninterest income to earning assets 0.91 0.91 Return on assets (ROA) 0.81 0.73 Return on equity
Slide 11: Peer Comparison December 31, 2017 - Condition ratios
Peer Comparison December 31, 2017 CB Financial Services, Inc. Peer group Condition ratios (%) Loss allowance to loans 1.18 % 1.18% Loss allowance to noncurrent loans 215.17 169.21 Noncurrent loans plus other real estate owned to assets 0.47 0.64 Noncurrent loans to loans 0.55 0.70 Net loans and leas
Slide 12: The First West Virginia Bancorp - Progressive Bank Transaction
12 The First West Virginia Bancorp - Progressive Bank Transaction
Slide 13: The Progressive Bank Transaction Rationale
13 The Progressive Bank Transaction Rationale ▪ Community Bank faced challenges with loan and deposit growth ▪ To increase revenue, Community Bank implemented the following: ▪ Develop a robust lending approach to grow the loan portfolio ▪ Produce low cost deposits to fund loan growth in an increasin
Slide 14: Strategy
14 Strategy ▪ One strategy was to acquire another financial institution ▪ This would increase deposits, allowing us to maintain a lower cost of funds by avoid term borrowings ▪ This would increase the number of outstanding shares and likely increase liquidity in the trading of CBFV stock ▪ This woul
Slide 15: The Progressive Bank Combination
15 The Progressive Bank Combination ▪ Progressive Bank had 8 attractive offices and approximately $ 285 million in low cost deposits ▪ Progressive Bank also had $205 million in securities ▪ However, Progressive Bank had only $101 million in loans ▪ For any combination of the banks to be successful,
Slide 16: Community Bank Achieves Strong Loan Growth
16 Community Bank Achieves Strong Loan Growth ▪ In the last quarter of 2017, loans grew by $40.5 million or 5.8%. Commercial loans grew by $34.4 million or 9.7%. ▪ In the first quarter of 2018, loans grew by $36.6 million or 5.0%. Commercial loans grew by $30.6 million or 8.7%. ▪ By the closing date
Slide 17: The Russell 2000 Index
17 The Russell 2000 Index ▪ CBFV and FWVB knew that the combined company would likely qualify to be included in the Russell 2000 Index when the Russell 2000 was reconstituted for 2018 ▪ The Russell 2000 is a subset of the Russell 3000, which is the 3000 largest public companies in America as measure
Slide 18: The Russell 2000 Index
18 The Russell 2000 Index ▪ CBFV worked hard to make sure that the transaction closed before May 11 th . ▪ The transaction, in fact, closed on April 30 th . ▪ After the closing, the market capitalization of CBFV went from $127 million to $168 million ▪ CBFV did achieve inclusion in the Russell 2000
Slide 19: CBFV Stock Price
19 CBFV Stock Price ▪ The increase in the number of shares outstanding and the increase in the price of the stock has resulted in a market capitalization of CBFV of approximately $194 million as of 6/15/18. ▪ Over the last 12 months, CBFV has increased shareholder value by approximately $ 8.80 in th
Slide 20: Future Strategy & Vision for CB Financial Services, Inc. and Community Bank
20 Future Strategy & Vision for CB Financial Services, Inc. and Community Bank
Slide 21: Our Economic Future
21 Our Economic Future ▪ Community Bank is excited about the economic prospects for the Tri - State area and particularly for the resurgence of the Ohio Valley ▪ The primary driver for this economic renaissance is the revolution in natural gas production and consumption occasioned by the development
Slide 22: Map of Marcellus / Utica Shale Region
As the map below demonstrates , the combination of Community Bank’s market presence in the heart of the Marcellus, and Progressive Bank’s market presence in the heart of the Utica, allows Community Bank to serve an economy that we believe has enormous upside potential. Source: U.S. Energy Informatio
Slide 23: Shale Gas Drives PetroChemical
23 Shale Gas Drives PetroChemical ▪ Shell Chemical Appalachia is building a “massive multi - billion dollar petrochemical plant” (known as an ethane cracker) in Potter Township, Beaver County ▪ Construction began in 2017, and will create over 6,000 construction jobs and will employ 600 people perman
Slide 24: West Virginia and Eastern Ohio Will Benefit from PetroChemical Development
24 West Virginia and Eastern Ohio Will Benefit from PetroChemical Development ▪ Another game changer would be a proposed cracker plant located in Dilles Bottom, Ohio, approximately 13 miles from Wheeling, WV ▪ The proposed cracker plant would employ thousands during construction and hundreds of perm
Slide 25: West Virginia Shale Gas Development Deal
25 ▪ In November 2017, West Virginia announced a $83.7 billion gas development deal with China Energy ▪ West Virginia Commerce Department has revealed that the first projects in a blockbuster agreement between the state and China are natural gas power plants, likely one in Harrison County and one in
Slide 26: Strategic Vision for Community Bank
26 Empower our experienced, high quality employees to provide superior customer service in all aspects of our business Create a service culture which builds full relationships with our customers Grow commercial, mortgage, and consumer loans; commercial deposits; insurance; and wealth managemen
Slide 27: "The community gave us a chance and it's the community we'll serve"
Barron P. “Pat” McCune, Jr. “The community gave us a chance and it’s the community we’ll serve” Richard Baily
Slide 28: 2004 to 2017 Growth: Assets, Market Cap, Dividend
12/31/2004 12/31/2017 Total Assets $327 million $932 million Total Market Cap $34 million $190 million (6/11/18) Dividend per share $ 0.39 per share $0.88 per share Average Dividend 2005 - 2017 $0.73 per share
Slide 29: Core Values and Vision Statement
Core Values 1. Take Care of Each Other 2. Protect the Bank 3. Give and Expect Mutual Respect 4. Always Do the Right Thing 5. Try Hard To Achieve Our Goals 6. Enjoy Life Every Day, Even the Challenges Vision Statement Community Bank will be an exceptional, independent financial institution. We will p
Slide 30: Barron P. "Pat" McCune, Jr.
BARRON P. “PAT” McCUNE, JR.
Slide 31: Barron P. "Pat" McCune, Jr. Corporate Center
This image cannot currently be displayed. Barron P. “Pat” McCune, Jr. Corporate Center
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