Cb Financial Services, Inc. · NASDAQ:CBFV
Cb Financial Services — KBW Community Bank Investor Conference August 2017
25 slides from Cb Financial Services's conference presentation, Jul 31, 2017
Slide 1: Investor Presentation KBW Community Bank Investor Conference August 2017
0 Investor Presentation KBW Community Bank Investor Conference August 2017
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 . Such forward - looking statements are subject to significant risks and uncertainties . The
Slide 3: CB Financial Services Overview
2 CB Financial Services Overview
Slide 4: Corporate Highlights (6/30/2017)
3 Corporate Highlights (6/30/2017) Corporate Information Branches 16 FTEs (2) 200 Market Capitalization (3) ~$110M Financial Summary Assets $872 M Total Loans HFI $682 M Deposits $727 M Top 10 market share in core operating area (1) ; focused in South Hills market of the Pittsburgh metropolitan ar
Slide 5: CBFV Footprint
4 CBFV Footprint Source: Google Maps. Note: Map includes limited service facilities.
Slide 6: Key Senior Management
5 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 Director & President Responsible for new commercial business generation, sales culture and b
Slide 7: Attractive Southwestern PA Market
6 Attractive 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 county statistics are deposit - weighted. Note: Deposit market share data as of 6/30/16 as adjusted for acq
Slide 8: Regional Economic Drivers
7 Regional Economic Drivers Source: U.S. Energy Information Administration. (1) Source: The Economist : “A Summary of the Livability Ranking and Overview” , published August 2014. (2) Per US Geological Survey and Energy Information Administration estimates. Includes natural gas and oil reserves. (3)
Slide 9: Shell Cracker Plant Site
8 Shell Cracker Plant Site Source: The Pittsburgh Post - Gazette, Marcellus Drilling News and Google Earth. (1) Source : Shell. http://www.shell.us/about - us/projects - and - locations/pennsylvania - chemicals - project.html 780 - acre (1) expanse on the southern bank of the Ohio and visible just
Slide 10: Diversified Business Mix
9 Retail Banking & Wealth Management 25% of deposits are noninterest bearing; nearly 15.5% year over year (1) NIB and NOW deposit growth Nearly 80% non - time deposits Excellent branch coverage of Southwestern PA Wealth management services linked strongly to Marcellus Region footprint Divers
Slide 11: Operations Center Modernization
10 Operations Center Modernization 22,500 ft 2 facility located in the EverGreene Technology Park in Waynesburg, PA; opened in June 2017 f or the first employees Houses all of finance, deposit and loan operations functions as well as information technology support Centralizes CBFV’s operations
Slide 12: Financial Performance
11 Financial Performance
Slide 13: Financial Highlights
12 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 6/30/16 throu
Slide 14: Balanced Fee Revenue Mix
13 Net Interest Income 77% Fee Income 23% 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 investments. Fee Revenue Mix – YTD 2017 Fee income sources comprise more than 20% of tot
Slide 15: Loan Composition
14 Loan Composition Source: Company documents and SNL Financial; Data is as of 6/30/17. 2017 Q2 Yield on Loans: 4.34% Balanced loan portfolio 2017 YTD annualized C&I loan growth of approximately 9.2% No commercial real estate loan concentration issues Consumer portfolio consists primarily of
Slide 16: Deposit Composition
15 Source: Company documents; Data is as of 6/30/17. (1) Represents the period from 6/30/16 through 6/30/17. Based on period end balance sheet data. 2017 Q2 Cost of Deposits: 0.37% Stable, low cost deposit base; 37 bps cost of deposits for the quarter - ended June 30, 2017 Nearly 80% non - time
Slide 17: Cost of Funds
16 Cost of Funds Source: SNL Financial and company documents. Fed Funds rates as of the period end as provided by SNL Financial. Funding Costs Net interest margin supported by stable cost of funds Our stable, low cost core deposit base becomes increasingly important in a rising rate environment
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 $300 million to $1.0 billio n. Excludes mutual instituti
Slide 19: Reserve Levels Support Capital Strength
18 159% 176% 102% 178% 191% 204% 0% 50% 100% 150% 200% 250% 2013Y 2014Y 2015Y 2016Y 2017Q1 2017Q2 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 compa
Slide 20: Investment Returns and Potential
19 Investment Returns and Potential
Slide 21: Potential for Stock Appreciation
20 LTM ROAA (%) Price / LTM EPS Source: SNL Financial and company documents. Pricing data as of 7/21/17. Peers include exchange traded banks headquartered in the Mid - Atlantic and Midwest with assets less than $1.5 billion and at leas t one 2017 earnings per share estimate. Excludes announced merge
Slide 22: Strategic Vision for CB Financial Services
21 Opportunistically grow to over $1.0 billion in total assets in the TriState Area Create a sales culture which builds full relationships with our commercial business customers Maintain above peer profitability while continuing to invest for the future Empower our experienced, high quality
Slide 23: Appendix
22 Appendix
Slide 24: Non-GAAP Reconciliations TCE Ratio and Tangible Book Value Per Share
23 Non - GAAP Reconciliations TCE Ratio and Tangible Book Value Per Share Source: Company documents. Efficiency Ratio 6 Months (dollars in thousands, except share data) For the Years Ended Ended 2014 2015 2016 6/30/2017 Stockholders' Equity 81,912$ 86,896$ 89,469$ 91,900$ Intangible Assets (10,520)
Slide 25: Non-GAAP Reconciliations Return on Average Tangible Common Equity
24 Non - GAAP Reconciliations Return on Average Tangible Common Equity (1) Source: Company documents. (1) Data for the quarter ended 6/30/2017 has been annualized for comparability purposes. 6 Months (dollars in thousands) For the Years Ended Ended 2014 2015 2016 6/30/2017 Net Income 4,292$ 8,420$ 7
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