Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — KBW Community Bank Investor Conference August 2018
26 slides from Cb Financial Services's conference presentation, Jul 30, 2018
Slide 1: Investor Presentation – KBW Community Bank Investor Conference August 2018
0 Investor Presentation KBW Community Bank Investor Conference August 2018
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: CB Financial Services Overview
2 CB Financial Services Overview
Slide 4: Franchise Summary and Corporate 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. 3 117 year old community ban
Slide 5: Diversified Business Mix
4 Commercial Banking Focus on new commercial business generation and sales culture 2018 YTD annualized organic CRE loan growth of approximately 45.6% Well positioned to serve the needs of small and medium sized businesses in the Marcellus and Utica Shale regions Diversified Business Mix Retail Banki
Slide 6: CBFV Legacy Southwestern PA Market
5 CBFV Legacy Southwestern PA Market Source: SNL Financial for all demographic data, the Pennsylvania Department of Labor and Industry and the Washington County, PA Chamber of Commerce. Summary statistics are deposit - weighted. Note: Deposit market share data as of 6/30/17 as adjusted for acquisiti
Slide 7: Regional Economic Developments and First West Virginia Franchise
6 Regional Economic Developments Deposit Market Share – Wheeling, WV (1) First West Virginia Franchise Expansion into the Ohio River Valley 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
Slide 8: First West Virginia Acquisition Integration
7 • Transaction closed April 30, 2018, in time for Russell 2000 reconstitution • Systems conversion occurred in May 2018 • Final credit mark of $1.35 million better than preliminary modelling of ~$2.5 million • Day - 1 tangible book value dilution to be better than preliminary estimate of ~12% • On
Slide 9: Marcellus / Utica Shales: A Key Economic Driver
8 Marcellus / Utica Shales: A Key Economic Driver Source: U.S. Energy Information Administration. Map of Marcellus / Utica Shale Region CBFV Market Area Pittsburgh Our presence in the heart of the Marcellus and Utica Shales provides our market with a key long - term driver for economic growth We are
Slide 10: Marcellus / Utica Shales: A Key Economic Driver
9 Marcellus / Utica Shales: A Key Economic Driver (1) Per US Geological Survey and Energy Information Administration estimates. Includes natural gas and oil reserves . (2) http://aongrc.nrcce.wvu.edu/wp - content/uploads/MASTER_Final_Report_8 - 29 - 2017.pdf Shell Cracker Plant PTT Global Chemical C
Slide 11: Financial Performance
10 Financial Performance
Slide 12: Financial Highlights
11 Source: Company documents and SNL Financial . (1) NPLs include nonaccrual loans, loans 90+ days past due and TDRs. NPAs include NPLs and OREO. (2) Non - GAAP financial metric. Please see the appendix to this presentation for non - GAAP reconciliations. (3) Represents the period from 6/30/17 throu
Slide 13: Balanced Fee Revenue Mix
12 $29,060 $16,781 $7,601 $4,192 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2017Y 2018YTD Net Interest Income Fee Income Balanced Fee Revenue Mix With Opportunity For Continued Improvement Source: Company documents. Note: Fee income defined as noninterest income less net gain on sales of investment
Slide 14: Efficiency Ratio
13 Efficiency Ratio Source: SNL Financial and company documents. CBFV data is for the three months ended June 30, 2018. (1) Based upon annualized $3.0 million of estimated cost savings in the First West Virginia transaction. Improving Efficiency with FWVB Transaction Combination with First West Virg
Slide 15: Accelerating Organic Loan Growth
14 Accelerating Organic Loan Growth Source: Company documents and SNL Financial; Data is as of 6/30/18. Year over year organic loan growth of approximately 16.9% through June 30, 2018 Q2 annualized loan organic growth of approximately 8.5% in the midst of merger integration Key new hires in Pittsbur
Slide 16: High Quality Deposit Base
15 Source: Company documents; Data is as of 6/30/18. (1) Represents the period from 6/30/17 through 6/30/18. Based on period end balance sheet data. Transaction with FWVB combines two stable, low cost deposit bases » 42 bps cost of total deposits for CBFV for the quarter ended March 31, 2018 » 23 bp
Slide 17: Cost of Interest Bearing Deposits
16 Cost of Interest Bearing Deposits Source: SNL Financial and company documents. Fed Funds rates as of the period end as provided by SNL Financial. (1) Historical combined data represents the weighted average of CBFV and FWVB reported data. (2) Represents end of period federal funds rate as reporte
Slide 18: Strong Asset Quality
17 Nonperforming Assets / Assets (1) Nonperforming Assets / Loans + OREO (1) NCOs / Avg. Loans Source: SNL Financial and company documents, Peers include all commercial banks and bank holding companies headquartered in Pennsylvania with assets $500 million to $2.0 billio n. Excludes mutual instituti
Slide 19: Reserve Levels Support Capital Strength
18 176% 102% 178% 224% 330% 229% 0% 100% 200% 300% 400% 2014Y 2015Y 2016Y 2017Y 2018Q1 2018Q2 CBFV PA Peer Median Allowance for Loan Losses / Nonaccrual Loans Allowance for Loan Losses / Loans Source: SNL Financial and company documents . Peers include all commercial banks and bank holding companies
Slide 20: Conclusions
19 Conclusions
Slide 21: Recent Evolution of the CBFV Story
20 Have utilized strategic M&A opportunities to increase scale (Russell 2000 inclusion and growing assets to >$1B) and address management succession (Pat O’Brien named President & CEO in June 2018) Investing in the long - term viability of the CBFV franchise through improved operations and corporate
Slide 22: Strategic Vision for CB Financial Services
21 Empower our experienced, high quality employees to provide superior customer service in all aspects of our business Create a service culture which builds full relationships with our customers Continue our track record of opportunistic growth in the Marcellus/Utica Shale Region Evolve toward more
Slide 23: Appendix
22 Appendix
Slide 24: Key Senior Management
23 Key Senior Management Pat McCune Ralph Sommers Chairman Joined Community Bank in 1979 as EVP Became President in 1984 and President & CEO in 1988 Board member since 1983 and Chairman since 1999 President & CEO Responsible for new commercial business generation, sales culture and business line int
Slide 25: Non-GAAP Reconciliations: TCE Ratio and Tangible Book Value Per Share
24 Non - GAAP Reconciliations TCE Ratio and Tangible Book Value Per Share Source: Company documents. Efficiency Ratio 6 Months (dollars in thousands, except share data) For the Years Ended Ended 2015 2016 2017 6/30/2018 GAAP Stockholders' Equity 86,896$ 89,469$ 93,256$ 133,806$ Intangible Assets (9,
Slide 26: Non-GAAP Reconciliations: Return on Average Tangible Common Equity
25 Non - GAAP Reconciliations Return on Average Tangible Common Equity (1) Source: Company documents. (1) Data for the six months ended 6/30/2018 has been annualized for comparability purposes. 6 Months (dollars in thousands) For the Years Ended Ended 2015 2016 2017 6/30/2018 GAAP Net Income 8,420$
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