Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it ...

Company Overview - CB Financial Services (CBFV) is located in Carmichaels and operates in the Finance sector. The stock has experienced a price change of 10.67% since the beginning of the year [3]. Dividend Information - CBFV currently pays a dividend of $0.26 per share, resulting in a dividend yield of 3.29%. This yield is higher than the Banks - Northeast industry's yield of 2.69% and the S&P 500's yield of 1.49% [3]. - The company's annualized dividend of $1.04 has increased by 4% from the previous year. Over the last five years, CBFV has raised its dividend once on a year-over-year basis, with an average annual increase of 1.24% [4]. Earnings Growth - CBFV is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.57 per share, indicating a year-over-year growth rate of 26.60% [5]. Investment Appeal - CBFV is considered an attractive dividend investment and a compelling opportunity, holding a Zacks Rank of 1 (Strong Buy) [6].

Core Viewpoint - CB Financial Services (CBFV) has shown a downtrend recently, losing 5.3% over the past two weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be regaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, signaling potential support [4][5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for CBFV, with a 33.9% increase in the consensus EPS estimate for the current year over the last 30 days, indicating analysts expect better earnings than previously predicted [7][8]. - The strong agreement among Wall Street analysts in raising earnings estimates enhances the bullish outlook for CBFV [2][7]. Zacks Rank - CBFV currently holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, further supporting the case for a trend reversal [10].

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents CB Financial Services, Inc.'s unaudited consolidated financial statements for Q2 2025, covering financial condition, income, and cash flows [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets increased to $1.52 billion from $1.48 billion at December 31, 2024, driven by growth in loans and cash, with total liabilities rising to $1.37 billion and stockholders' equity slightly increasing to $148.4 million Consolidated Statements of Financial Condition (Unaudited) | (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Total Cash and Due From Banks | $64,506 | $49,572 | | Total Securities | $267,171 | $262,153 | | Loans, Net | $1,101,102 | $1,082,821 | | **TOTAL ASSETS** | **$1,517,984** | **$1,481,564** | | **LIABILITIES** | | | | Total Deposits | $1,309,432 | $1,283,517 | | **TOTAL LIABILITIES** | **$1,369,622** | **$1,334,186** | | **STOCKHOLDERS' EQUITY** | | | | **TOTAL STOCKHOLDERS' EQUITY** | **$148,362** | **$147,378** | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$1,517,984** | **$1,481,564** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q2 2025 increased to $3.9 million, driven by higher net interest income and lower noninterest expenses Quarterly Income Statement Highlights (Unaudited) | (Dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Interest and Dividend Income | $12,540 | $11,470 | | Total Noninterest Income | $931 | $688 | | Total Noninterest Expense | $8,748 | $8,984 | | **Net Income** | **$3,949** | **$2,650** | | **Diluted EPS** | **$0.74** | **$0.51** | Six-Month Income Statement Highlights (Unaudited) | (Dollars in thousands, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Interest and Dividend Income | $23,850 | $23,062 | | Total Noninterest Income | $1,718 | $2,604 | | Total Noninterest Expense | $18,549 | $17,412 | | **Net Income** | **$5,858** | **$6,847** | | **Diluted EPS** | **$1.09** | **$1.33** | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q2 2025 was $5.0 million, driven by higher net income and positive other comprehensive income Comprehensive Income Summary (Unaudited) | (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $3,949 | $2,650 | $5,858 | $6,847 | | Other Comprehensive Income (Loss), Net of Tax | $1,054 | $(271) | $2,919 | $(1,604) | | **Total Comprehensive Income** | **$5,003** | **$2,379** | **$8,777** | **$5,243** | [Consolidated Statements of Changes In Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20In%20Stockholders'%20Equity) Stockholders' equity increased by $0.98 million for the six months ended June 30, 2025, driven by net income and OCI, offset by share repurchases and dividends - Key changes in stockholders' equity for the six months ended June 30, 2025 include: Net Income of **$5.9 million**, Other Comprehensive Income of **$2.9 million**, treasury stock purchases of **$6.8 million**, and dividends paid of **$2.5 million**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $14.9 million for the six months ended June 30, 2025, with positive contributions from operating and financing activities Six-Month Cash Flow Summary (Unaudited) | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $8,159 | $2,094 | | Net Cash Used in Investing Activities | $(10,931) | $(7,755) | | Net Cash Provided by Financing Activities | $17,706 | $80,038 | | **Increase in Cash and Cash Equivalents** | **$14,934** | **$74,377** | [Notes to the Consolidated Financial Statements (Unaudited)](index=14&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes provide critical context to the financial statements, detailing accounting policies for ACL, loan portfolio, and off-balance-sheet commitments - The company's critical accounting policies, susceptible to significant change, relate to the Allowance for Credit Losses (ACL), valuation of foreclosed real estate, and impairment evaluations of securities and goodwill[24](index=24&type=chunk)[31](index=31&type=chunk) - The company has one reportable segment: community banking services[28](index=28&type=chunk) Loan Portfolio Composition | (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Residential Real Estate | $329,324 | $337,990 | | Commercial Real Estate | $513,197 | $485,513 | | Construction | $40,680 | $54,705 | | Commercial and Industrial | $138,221 | $112,047 | | Consumer & Other | $89,402 | $102,371 | | **Total Loans** | **$1,110,824** | **$1,092,626** | - Nonperforming assets were **$1.9 million** at June 30, 2025, up slightly from **$1.8 million** at year-end 2024, with nonaccrual loans remaining stable at approximately **$1.8 million**[70](index=70&type=chunk) - The Allowance for Credit Losses (ACL) on loans was **$9.7 million** at June 30, 2025, compared to **$9.8 million** at December 31, 2024, representing **0.88%** of total loans[61](index=61&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - Total off-balance-sheet credit commitments increased to **$196.6 million** at June 30, 2025, from **$167.6 million** at year-end 2024, primarily due to a rise in commercial lines of credit[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses financial performance, highlighting asset and loan growth, increased Q2 2025 net income, and strong capital, despite a six-month net income decline - Total assets increased by **$36.4 million (2.5%)** to **$1.52 billion** at June 30, 2025, from December 31, 2024[138](index=138&type=chunk) - Total loans grew by **$18.2 million (1.7%)** in the first six months of 2025, driven by commercial real estate and commercial & industrial loan growth, offsetting declines in consumer lending[143](index=143&type=chunk) - Total deposits increased by **$25.9 million (2.0%)**, with a strategic shift towards core deposits (demand and savings) and away from time deposits[141](index=141&type=chunk) - Q2 2025 net income increased by **$1.3 million** YoY to **$3.9 million**, primarily due to a **$1.1 million** increase in net interest income and a **$236,000** decrease in noninterest expense[146](index=146&type=chunk)[147](index=147&type=chunk)[158](index=158&type=chunk) - Six-month 2025 net income decreased by **$989,000** YoY to **$5.9 million**, mainly due to a **$2.1 million** increase in salary/benefit costs (including a one-time reduction-in-force expense) and lower noninterest income compared to 2024, which included significant gains[160](index=160&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk) - Tangible book value per common share (Non-GAAP) increased by **4.0%** to **$27.88** at June 30, 2025, from **$26.82** at December 31, 2024[137](index=137&type=chunk)[145](index=145&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk.) The company's primary market risk is interest rate risk, managed via NII and EVE sensitivity modeling to rate shifts, remaining within policy limits - The company's most significant market risk is interest rate risk, which is monitored through simulation modeling of Net Interest Income (NII) and Economic Value of Equity (EVE)[191](index=191&type=chunk)[192](index=192&type=chunk) Interest Rate Sensitivity Analysis (at June 30, 2025) | Change in Interest Rates (Basis Points) | EVE Percent Change | Net Interest Earnings at Risk Percent Change | | :--- | :--- | :--- | | +400 | (12.6)% | +9.6% | | +200 | (6.4)% | +4.8% | | +100 | (3.0)% | +2.5% | | Flat | 0.0% | 0.0% | | (100) | +2.5% | (2.5)% | | (200) | +3.5% | (5.2)% | [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[199](index=199&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[200](index=200&type=chunk) [PART II - OTHER INFORMATION](index=54&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in various claims, but management believes no pending legal proceedings will materially affect its financial condition or operations - The company is not a party to any pending legal proceedings that are expected to have a material adverse effect on its financial condition or results of operations[201](index=201&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, are reported - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, indicating no material changes[202](index=202&type=chunk) [Issuer Purchases of Equity Securities](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) During Q2 2025, the company repurchased 151,893 common shares at an average of $28.92, completing the July 2024 stock repurchase program Common Stock Purchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 56,397 | $28.33 | | May 2025 | 73,777 | $29.43 | | June 2025 | 21,719 | $28.74 | | **Total** | **151,893** | **$28.92** | - The stock repurchase program announced on July 22, 2024, was completed on June 13, 2025[204](index=204&type=chunk) [Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) Not applicable; the company reports no defaults upon senior securities - Not applicable[205](index=205&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) Not applicable; the company has no mine safety disclosures to report - Not applicable[206](index=206&type=chunk) [Other Information](index=54&type=section&id=Item%205.%20Other%20Information.) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q2 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended June 30, 2025[207](index=207&type=chunk) [Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and XBRL financial statements - Exhibits filed include CEO and CFO certifications (Rule 13a-14(a) and Section 906) and XBRL interactive data files[208](index=208&type=chunk)

Group 1 - CB Financial Services, Inc. (CBFV) has reached a significant support level and is considered a good pick for investors from a technical perspective due to a recent "golden cross" formation [1] - The golden cross occurs when a stock's 50-day simple moving average breaks above its 200-day moving average, indicating a potential bullish breakout [1] - CBFV has moved 6.6% higher over the last four weeks, suggesting it may be on the verge of a breakout [3] Group 2 - The company currently holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong investor interest [3] - Positive earnings outlook for the current quarter further solidifies the bullish case for CBFV, with no earnings estimates going lower in the past two months and two revisions higher [3] - The Zacks Consensus Estimate for CBFV has also increased, reflecting improved investor sentiment [3] Group 3 - Investors are encouraged to consider adding CBFV to their watchlist due to the important technical indicator and positive movement in earnings estimates [5]

Core Viewpoint - Investors are encouraged to consider CB Financial Services (CBFV) due to improving earnings estimates and positive stock momentum [1][2] Earnings Estimates - Analysts are increasingly optimistic about the earnings prospects of CB Financial Services, leading to higher earnings estimates that are expected to positively impact the stock price [2] - The current-quarter earnings estimate is projected at $0.65 per share, reflecting an 18.2% year-over-year increase, with a 30% rise in the Zacks Consensus Estimate over the last 30 days [6] - For the full year, the earnings estimate stands at $2.57 per share, indicating a 26.6% increase from the previous year, supported by two upward revisions and no negative changes [7] Zacks Rank - CB Financial Services has achieved a Zacks Rank 1 (Strong Buy) due to strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock performance [3][8] - The Zacks Rank system has shown that stocks rated 1 have generated an average annual return of +25% since 2008, indicating a strong potential for outperformance [3] Stock Performance - The stock has experienced a 15.4% gain over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9]

Group 1: Stock Recommendations - Hasbro, Inc. (HAS) has seen a 3.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 3.7%, significantly higher than the industry average of 0.0% [1] - CB Financial Services, Inc. (CBFV) has experienced an 18.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days, with a dividend yield of 3.1%, compared to the industry average of 2.7% [2] - MAG Silver Corp. (MAG) has had a 17.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2: Additional Information - Another Zacks Rank 1 company has a dividend yield of 1.1%, which is above the industry average of 0.3% [3]

Core Viewpoint - CB Financial Services (CBFV) reported quarterly earnings of $0.74 per share, significantly exceeding the Zacks Consensus Estimate of $0.40 per share, and showing an increase from $0.52 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was +85.00%, with the company previously expected to post earnings of $0.43 per share but actually reporting $0.50, resulting in a surprise of +16.28% [2]. - For the quarter ended June 2025, CB Financial Services posted revenues of $13.47 million, surpassing the Zacks Consensus Estimate by 7.77%, compared to $12.16 million in the same quarter last year [3]. - Over the last four quarters, the company has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2][3]. Stock Performance and Outlook - Since the beginning of the year, CB Financial Services shares have declined by approximately 0.6%, while the S&P 500 has gained 7.2% [4]. - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [5]. - The current consensus EPS estimate for the next quarter is $0.50 on revenues of $12.9 million, and for the current fiscal year, it is $1.92 on revenues of $50.7 million [8]. Industry Context - The Zacks Industry Rank indicates that the Banks - Northeast sector is currently in the top 30% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [9]. - Another company in the same industry, Pathward Financial (CASH), is expected to report quarterly earnings of $1.57 per share, reflecting a year-over-year decline of 5.4% [10].

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Q2 2025 net interest margin expanded to 3.54% due to lower funding costs and higher asset yields, maintaining strong asset quality - Total assets grew to **$1.52 billion**, driven by **strong commercial loan production** funded by an **increase in core deposit accounts**[4](index=4&type=chunk) - The company is **repositioning its balance sheet** by redeploying funds from indirect auto and residential mortgage loans into **higher-yielding commercial loans**, which now constitute **59% of the loan portfolio**, up from **53% YoY**[4](index=4&type=chunk) - **Net Interest Margin (NIM) improved** to **3.54%** for Q2 2025 from **3.27%** in Q1 2025, due to a **reduced cost of funds** (**1.89%** from **2.03%**) and an **increased yield on earning assets** (**5.31%** from **5.17%**)[4](index=4&type=chunk) - **Noninterest expenses decreased** by **$1.1 million** quarter-over-quarter to **$8.7 million**, primarily due to **$1.0 million** in one-time expenses related to a reduction in force in the previous quarter[4](index=4&type=chunk) - **Asset quality remains strong**, with **nonperforming loans to total loans** at **0.16%** as of June 30, 2025[5](index=5&type=chunk) [Key Financial Metrics (Q2 2025 vs. Prior Periods)](index=1&type=section&id=Key%20Financial%20Metrics%20(Q2%202025%20vs.%20Prior%20Periods)) Q2 2025 profitability significantly increased with GAAP Net Income rising to $3.9 million and Diluted EPS more than doubling to $0.74 Quarterly Financial Performance (GAAP) | Metric | Q2 2025 ($M) | Q1 2025 ($M) | Q2 2024 ($M) | | :--- | :--- | :--- | :--- | | Net Income | $3.95 | $1.91 | $2.65 | | Diluted EPS | $0.74 | $0.35 | $0.51 | | Pre-Provision Net Revenue (PPNR) | $4.72 | $2.30 | $3.17 | Year-to-Date Financial Performance (GAAP) | Metric (Six Months Ended) | June 30, 2025 ($M) | June 30, 2024 ($M) | | :--- | :--- | :--- | | Net Income | $5.86 | $6.85 | | Diluted EPS | $1.09 | $1.33 | [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) The Board approved a 4.0% increase in the quarterly cash dividend, reflecting confidence in financial performance and shareholder returns - A quarterly cash dividend of **$0.26** per share was declared, representing a **4.0% increase** The dividend is payable around August 29, 2025, to stockholders of record as of August 15, 2025[10](index=10&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) [Strategic Initiatives and Outlook](index=2&type=section&id=Strategic%20Initiatives%20and%20Outlook) Management expressed a positive outlook, highlighting successful balance sheet repositioning and strategic initiatives like the Specialty Treasury Payments & Services program - Management credits the Q2 net interest margin expansion to a **reduced cost of funds from a better deposit mix**, **disciplined pricing**, and **recent federal funds rate cuts**[6](index=6&type=chunk) - The **loan portfolio grew** by **$18.2 million** (**1.7%**) since year-end, driven by **commercial real estate and C&I loans**, with **steady loan demand expected to continue**[7](index=7&type=chunk) - The company is advancing its **Specialty Treasury Payments & Services program**, a **key long-term strategic initiative** aimed at **driving revenue and core deposit growth**, with a **target launch in late 2025**[8](index=8&type=chunk) - A **strategic shift in deposit mix is underway**, with a focus on **reducing time deposits** (down **$16.7 million** since year-end) and an eventual plan to **replace brokered CDs with deposits from treasury initiatives**[9](index=9&type=chunk) [Detailed Financial Review (Q2 2025)](index=2&type=section&id=Detailed%20Financial%20Review%20(Q2%202025)) [Net Interest and Dividend Income](index=2&type=section&id=Net%20Interest%20and%20Dividend%20Income) Net interest income increased 9.3% year-over-year to $12.5 million, driven by a 36 basis point expansion in FTE Net Interest Margin to 3.55% Net Interest Margin (NIM) Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | NIM (GAAP) | 3.54% | 3.18% | | FTE NIM (Non-GAAP) | 3.55% | 3.19% | - **Interest income on loans grew** **$822 thousand** (**5.6%**) YoY, as the **average loan yield increased** by **18 bps** to **5.68%** This was achieved despite rate cuts, thanks to the **redeployment of funds from lower-yielding consumer loans to higher-yielding commercial products**[17](index=17&type=chunk) - **Interest expense on deposits decreased** by **$1.3 million** (**19.0%**) YoY The **cost of interest-bearing deposits fell** **47 bps** to **2.28%** due to a **favorable change in deposit mix** and **recent federal funds rate decreases**[17](index=17&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses) A minimal provision for credit losses of $8 thousand was recorded in Q2 2025, offset by loan recoveries and provisions for unfunded commitments - The company recorded a **net provision for credit losses** of **$8 thousand** in Q2 2025, compared to a **net recovery** of **$36 thousand** in Q2 2024[14](index=14&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income) Noninterest income rose by 35.3% year-over-year to $931 thousand, primarily driven by increased service fees from corporate deposit and health reimbursement accounts - **Noninterest income increased** by **$243 thousand** YoY, mainly due to a **$205 thousand increase in service fees**[15](index=15&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Noninterest expense decreased by 2.6% year-over-year to $8.7 million, driven by lower occupancy and amortization costs despite increased salaries and benefits - **Key drivers of the YoY expense decrease** include: - **Occupancy expense**: down **$324 thousand** - **Intangible amortization**: down **$264 thousand** (**fully amortized in 2024**) - **Data processing**: down **$250 thousand**[16](index=16&type=chunk) - **Salaries and benefits increased** by **$663 thousand** (**15.0%**) YoY to **$5.1 million**, attributed to **merit increases**, **hiring of revenue-producing staff**, and **higher insurance costs**, partially offset by **savings from the recent reduction in force**[16](index=16&type=chunk)[18](index=18&type=chunk) [Statement of Financial Condition Review](index=4&type=section&id=Statement%20of%20Financial%20Condition%20Review) Total assets grew to $1.52 billion, supported by increased loans and deposits with an improved mix, leading to higher stockholders' equity [Assets](index=4&type=section&id=Assets) Total assets increased by $36.4 million (2.5%) since year-end 2024, reaching $1.52 billion, driven by cash, securities, and loan portfolio growth Asset Changes (since Dec 31, 2024) | Asset Category | Change ($M) | Change (%) | | :--- | :--- | :--- | | Total Assets | +$36.4 | +2.5% | | Cash and due from banks | +$14.9 | +30.1% | | Securities | +$5.0 | +1.9% | | Total loans | +$18.2 | +1.7% | [Loans and Credit Quality](index=4&type=section&id=Loans%20and%20Credit%20Quality) Total loans grew by $18.2 million (1.7%) driven by commercial lending, while credit quality remained excellent with nonperforming loans at 0.16% - **Loan growth was led by commercial real estate** (**+$27.7 million**) and **commercial & industrial loans** (**+$26.2 million**), while **consumer loans decreased** (**-$13.1 million**) due to the **discontinuation of the indirect auto loan product**[24](index=24&type=chunk) - The **allowance for credit losses (ACL) to total loans was** **0.88%** at June 30, 2025[24](index=24&type=chunk) - **Nonperforming loans remained stable** at **$1.8 million**, representing **0.16%** of total loans[24](index=24&type=chunk) [Liabilities and Deposits](index=4&type=section&id=Liabilities%20and%20Deposits) Total liabilities increased due to a 2.0% growth in total deposits to $1.31 billion, with an improved deposit mix favoring lower-cost accounts - **Total deposits increased** by **$25.9 million** (**2.0%**) since year-end 2024[22](index=22&type=chunk) - The **deposit mix shifted favorably**: **interest-bearing demand, non-interest-bearing demand, and savings deposits grew**, while **time deposits and money market accounts decreased**[22](index=22&type=chunk) - **Brokered time deposits increased** to **$79.0 million** from **$39.0 million** at year-end, used to **fund purchases of floating-rate CLO securities**[22](index=22&type=chunk) [Stockholders' Equity](index=5&type=section&id=Stockholders%27%20Equity) Stockholders' equity increased by $984 thousand since year-end to $148.4 million, driven by net income partially offset by share repurchases and dividends - The **increase in equity was driven by net income** of **$5.9 million**, **partially offset by treasury share purchases and dividend payments** of **$6.8 million** and **$2.5 million** respectively[25](index=25&type=chunk) Book Value Per Share | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Book Value per Share | $29.84 | $28.71 | | Tangible Book Value per Share (Non-GAAP) | $27.88 | $26.82 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Selected Consolidated Financial Information](index=6&type=section&id=Selected%20Consolidated%20Financial%20Information) Consolidated financial statements show total assets at $1.52 billion, total loans at $1.11 billion, and total deposits at $1.31 billion, with Q2 net income of $3.9 million Condensed Balance Sheet (As of June 30, 2025) | Category | Amount (in millions) | | :--- | :--- | | Total Assets | $1,517.98 | | Loans, Net | $1,101.10 | | Total Deposits | $1,309.43 | | Total Liabilities | $1,369.62 | | Stockholders' Equity | $148.36 | Condensed Income Statement (Three Months Ended June 30, 2025) | Category | Amount (in millions) | | :--- | :--- | | Net Interest and Dividend Income | $12.54 | | Total Noninterest Income | $0.93 | | Total Noninterest Expense | $8.75 | | Income Before Income Tax Expense | $4.72 | | Net Income | $3.95 | Key Ratios (Q2 2025) | Ratio | Value | | :--- | :--- | | Return on Average Assets | 1.06% | | Return on Average Equity | 10.76% | | Efficiency Ratio | 64.94% | | Nonperforming Loans to Total Loans | 0.16% | | Tier 1 Leverage (Bank only) | 10.49% | [Average Balances and Yields](index=9&type=section&id=Average%20Balances%20and%20Yields) Average balance sheets detail asset yields and liability costs, with Q2 2025 showing an average yield on interest-earning assets of 5.31% and a cost of funds of 1.89% Q2 2025 Average Balances and Yields/Costs | Category | Average Balance ($M) | Yield/Cost (%) | | :--- | :--- | :--- | | Total Interest-Earning Assets | $1,421.5 | 5.31% | | Total Loans, Net | $1,098.7 | 5.68% | | Total Interest-Bearing Liabilities | $1,050.4 | 2.38% | | Total Funding | $1,321.1 | 1.89% | Six Months Ended June 30, 2025 Average Balances and Yields/Costs | Category | Average Balance ($M) | Yield/Cost (%) | | :--- | :--- | :--- | | Total Interest-Earning Assets | $1,413.0 | 5.24% | | Total Interest-Bearing Liabilities | $1,046.5 | 2.46% | | Total Funding | $1,314.6 | 1.96% | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation and Reconciliation](index=11&type=section&id=Explanation%20and%20Reconciliation) Non-GAAP financial measures like Tangible Book Value and Adjusted Net Income are used to provide a clearer understanding of underlying operational performance - **Non-GAAP measures are used to facilitate comparisons** with other financial services companies and to provide a **complete understanding of factors and trends affecting the business**[46](index=46&type=chunk) Reconciliation of Book Value to Tangible Book Value (per share) | Metric (as of June 30, 2025) | Value | | :--- | :--- | | Book Value per Common Share (GAAP) | $29.84 | | Tangible Book Value per Common Share (Non-GAAP) | $27.88 | Reconciliation of Net Income to Adjusted Net Income (Q2 2025 vs Q1 2025) | (in millions) | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income (GAAP) | $3.95 | $1.91 | | Adjustments (net of tax) | $0.00 | $0.81 | | Adjusted Net Income (Non-GAAP) | $3.95 | $2.72 |

Financial Performance - Net income for Q2 2024 was $2.7 million, with diluted earnings per share of $0.51[24] - Net interest income was $11.5 million, a decrease of 1.0% from Q1 2024 but an increase of 3.1% from Q2 2023[24] - Net interest margin was 3.18%, down 18 bps from Q1 2024 and 11 bps from Q2 2023[24] - Return on average tangible common equity was 8.99% for Q2 2024, compared to 12.20% in Q2 2023[24] Balance Sheet - Net loans decreased 1.6% from March 31, 2024, to $1.07 billion, and 2.9% from December 31, 2023[24] - Deposits increased 6.9% from March 31, 2024, to $1.35 billion, and 6.5% from December 31, 2023[24] - Core deposits (non-time) were 74% of total deposits at June 30, 2024[24] Asset Quality and Capital - Nonperforming loans to total loans was 0.17% and nonperforming assets to total assets was 0.13% as of June 30, 2024[24] - The Bank's Tier 1 Leverage ratio was 9.98% at June 30, 2024, compared to 10.19% at December 31, 2023[24] - Available liquidity covers 337% of uninsured/non-collateralized deposits[24] Stock Information - CBFV Share Price was $22.66 as of July 22, 2024[9] - Shares Outstanding were 5.1 million[9] - Market Cap was $120.1 million[9]