Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Investor Presentation (November 2019)
24 slides from Cb Financial Services's investor presentation, Nov 15, 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
1 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 (the “Act”) . Such forward - looking statements are subject to significant risks and uncertai
Slide 3: Overview of CB Financial Services, Inc.
2 2 118 year old community bank headquartered in Southwestern PA 28 locations in Southwestern PA, Ohio River Valley and Central WV Listed on NASDAQ with ticker “CBFV” Strategic, disciplined acquirer: ► FedFirst Financial in October 2014 ► First West Virginia in April 2018 ► Beynon Insurance in Augus
Slide 4: Management team
3 President & Chief Executive Officer Appointed CEO in June 2018 & President in May 2017 Director since 2014 35+ years of commercial banking experience, 14 years in executive management Former President, CEO & Director of FFCO; previously a Regional President of WSBC Jamie Prah Executive Vice Presid
Slide 5: Diversified Business
4 Diversified Business Source: Company documents - (1) For the nine months ended 9/30/19 . Fee income defined as noninterest income excluding net gains/losses on investments and other nonrecurring items. Focus on new commercial business generation and sales culture ► Growing presence within the Pitt
Slide 6: Strategic Vision for CBFV
5 Empower our experienced, high quality employees to provide superior customer service in all aspects of our business Create a sales and service culture which builds full relationships with our customers Enhance profitability and efficiency while continuing to invest for future growth Continue our t
Slide 7: Attractive Operating Markets
6 Population of approximately 2.3 million 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 educated labor force from Carnegie Mellon University, University of Pi
Slide 8: Marcellus / Utica Shale Region
7 Shell Cracker Plant PTT Global Chemical Cracker Plant Source: U.S. Energy Information Administration. (1) US Geological Survey and Energy Information Administration estimates. Includes natural gas and oil reserves. (2) https://aongrc.wvu.edu/files/d/b0b6b967 - 5911 - 4bbe - 957f - 0b149851224f/ngl
Slide 9: Key Economic Drivers: Pittsburgh & Regionally
8 Key Economic Drivers: Pittsburgh & Regionally • Pittsburgh has a robust and diverse economy. September 2019 unemployment is 3.8% (per BLS), the lowest level since 1976 • Carnegie Mellon University and the University of Pittsburgh have helped to bring tech jobs and innovation to the area and tech g
Slide 10: Financial Update
Financial Update
Slide 11: Financial Update – Q3 2019
10 Diluted EPS for Q3 2019 was $ 0.69, compared to $ 0.55 and $ 0.42 for Q2 2019 and Q3 2018, respectively Net income for Q3 2019 was $3.7 million, compared to $3.0 million for Q2 2019 and $2.3 million for Q3 2018, driven by significant improvements in the efficiency ratio and organic balance sheet
Slide 12: Deposit Base, Loan Portfolio, Balance Sheet Mix
11 Deposit Base Loan Portfolio Balance Sheet Mix Source: Company documents, as of or for the quarter ended 9/30/19 . $932 million in gross loans, 4.75% loan yield in Q3 2019 44% of loans are commercial real estate and C&I 3.4% organic loan growth year over year vs. 2018 YTD organic growth has come i
Slide 13: Balance Sheet Trends
12 Loans Deposits Balance Sheet Trends Source: S&P Global Market Intelligence and company documents, as of 9/30/19 . Note: All dollars in millions. (1) Includes commercial real estate, construction and C&I loans. Organic loan and deposit growth has continued post FWVB transaction which closed in Q2
Slide 14: High Quality Deposit Base
13 Deposit Beta vs. Peers (1) High Quality Deposit Base Source: S&P Global Market Intelligence and Company documents. (1) Represents change in cost of interest bearing deposits from Q4 2016 through Q2 2019 divided by the change in the fed funds rate. Peers comprised of major exchange traded banks wi
Slide 15: Strong Asset Quality & Coverage
14 Nonperforming Assets / Assets Allowance for Loan Losses / Gross Loans Net Charge Offs / Average Loans Strong Asset Quality & Coverage Source: S&P Global Market Intelligence and company documents, as of 9/30/19 . Allowance for Loan Losses / Nonaccrual Loans 1.02% 0.81% 0.56% 0.44% 0.78% 0.60% 0.00
Slide 16: Net Interest Margin Analysis
15 Net Interest Margin Analysis Interest Rate Sensitivity Profile Net Interest Margin Source: S&P Global Market Intelligence and company documents, as of 9/30/19 . NIM expanded 12bps to 3.74% as compared with Q2 2019 of 3.62% on improved asset yields and slightly lower interest bearing deposit costs
Slide 17: Revenue Diversification
16 Deposit Fees & Service Charges 34% Insurance Commissions 47% Other Noninterest Income 19% Fee Income Mix – YTD 2019 Fee income sources comprised approximately 18% of 2019 total operating revenue Cross - sell efforts, with respect to insurance and wealth management continue to be emphasized The Ex
Slide 18: Efficiency Trends & Opportunities
17 Non - Interest Expense and Non - Interest Income (1) Efficiency Trends & Opportunities Source: S&P Global Market Intelligence and company documents, as of 9/30/19 . (1) Noninterest expense excludes merger charges of $854,000 and $356,000 in 2018 and 2017, respectively. (2) Non - GAAP financial me
Slide 19: Profitability Trends
18 Return on Average Assets Return on Average Tangible Common Equity (1) Profitability Trends Source: S&P Global Market Intelligence and company documents, as of 9/30/19 . (1) Non - GAAP financial metric. Please see the appendix to view this presentation for Non - GAAP reconciliations. 2018 results
Slide 20: Market Performance – Since 12/31/13
19 Market Performance – Since 12/31/13 Shareholder Return Source: S&P Global Market Intelligence and Company documents, financial data as of 9/30/19 . Market data as of 11/13/19 . (1) Based on average Street EPS estimates. (2) 2019 dividends based on annualized Q3 2019 dividend of $0.24 per share. A
Slide 21: Questions?
Questions?
Slide 22: Appendix
Appendix
Slide 23: Non-GAAP Reconciliations: TCE Ratio and Tangible Book Value
22 TCE Ratio and Tangible Book Value Per Share Efficiency Ratio Non - GAAP Reconciliations Source: Company documents, as of 9/30/19. (dollars in thousands, except share data) For the Years Ended For the Quarter Ended 2016 2017 2018 9/30/18 9/30/19 GAAP Stockholders' Equity $89,469 $93,256 $137,625 $
Slide 24: Non-GAAP Reconciliations: Return on Average Tangible Common Equity
23 Return on Average Tangible Common Equity Non - GAAP Reconciliations Source: Company documents, as of 9/30/19. 9 Months (dollars in thousands) For the Years Ended Ended For the Quarter Ended 2016 2017 2018 9/30/19 9/30/18 9/30/19 GAAP Net Income $7,580 $6,944 $7,052 $9,650 $2,292 $3,746 Amortizati
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