Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — Merger or Acquisition (November 2017)
11 slides from Cb Financial Services's merger presentation, Nov 16, 2017
Slide 1: Expanding Into The Ohio Valley: CB Financial Services Acquiring First West Virginia Bancorp
0 Expanding Into The Ohio Valley CB Financial Services, Inc. Acquiring First West Virginia Bancorp, Inc. November 16, 2017
Slide 2: Forward-Looking Statements and Important Additional Information
1 This investor presentation contains "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act, relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of CB Financial Se
Slide 3: Attractive Expansion into the Ohio River Valley Improves Core Funding & Liquidity Profile
2 Attractive Expansion into the Ohio River Valley Improves Core Funding & Liquidity Profile Market Familiarity First West Virginia has the #5 community bank (1) deposit market share in the Wheeling, WV MSA First West Virginia adds approximately $285 million of low - cost deposits First full ye
Slide 4: First West Virginia Bancorp, Inc. Overview
3 Source: SNL Financial. Financial data as of 6/30/17. (1) Alpine is an S - Corporation. ROAA and ROAE tax - effected at an effective rate of 30%. (2) NPLs include nonaccrual loans and TDRs. NPAs include NPLs, OREO and loans 90+ days past due and still accruing interest. 3 Progressive Bank is a 10
Slide 5: Regional Economic Developments and Deposit Market Share – Wheeling, WV
4 Regional Economic Developments Deposit Market Share – Wheeling, WV (1) Pro Forma Franchise Expanding into the Ohio Valley Region Source: SNL Financial, bizjournals.com, wvmetronews.com. (1) Excludes banks with more than $25 billion in total assets . (2) Purchase announced in June 2017. (3) http://
Slide 6: First West Virginia – Excellent Core Funding Source
5 Cost of Funds vs. Peers (1) Stable, low - cost deposit sources provide ready liquidity source to fund continued loan growth 7 branch locations in the Ohio River Valley and 1 in Buckhannon, WV Deposit portfolio details (as of 9/30/2017) • $285 million of total deposits • $49.5 million of noni
Slide 7: Pro Forma Loan and Deposit Portfolios
6 Loan Portfolio Deposit Mix Total loans: $704 million Average yield: 4.31% CBFV Total deposits: $762 million Cost of Deposits = 0.39% Loan/deposit ratio of 92% CBFV Total loans: $101 million Average yield: 4.51% FWVB Total deposits: $285 million Cost of Deposits = 0.23% Loan/deposit ratio of 36% To
Slide 8: Transaction Summary
7 Each outstanding share of First West Virginia will be exchanged for 0.9583 shares of CBFV common stock or $28.50 of cash at the election of First West Virginia shareholders Consideration Mix: 80% stock / 20% cash Implied Price per Share: $28.50 (1) Transaction Value: $49.0 million (1) Pr
Slide 9: Financial Impact and Key Assumptions
8 Identified cost savings of approximately $3.0 million (37 % of noninterest expense) when fully phased - in • 65% phased - in during 2018 and 100% thereafter Assumes ~$155.6 million of incremental loan growth from CBFV and FWVB is funded through a redeployment of FWVB’s existing liquidity over
Slide 10: Valuation Discount Relative to Pro Forma Peers
9 2019 Estimated ROAA (%) (1) Source: SNL Financial and company documents. Pricing data as of 11/15/17. Peers include exchange traded banks headquartered in the Mid - Atlantic and Midwest with assets between $1.0 billion and $1.75 bil lion and at least one 2019 return on average assets or earnings p
Slide 11: Transaction Summary
10 Logical expansion into contiguous Ohio River Valley markets Stable, low - cost pro forma core funding base comprised of approximately 80% non - time deposits at a weighted rate of 35 basis points Attractive funding source for CBFV’s loan growth $1.25 billion combined franchise positioned
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