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]

Financial Performance - Net income for the three months ended March 31, 2025, was $1.9 million, a decrease of $2.3 million compared to $4.2 million for the same period in 2024[139]. - Net interest income decreased by $280,000, or 2.4%, to $11.3 million for the three months ended March 31, 2025, compared to $11.6 million for the same period in 2024[140]. - Noninterest income decreased by $1.1 million, or 58.9%, to $787,000 for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024[151]. - Noninterest expense increased by $1.4 million, or 16.3%, to $9.8 million for the three months ended March 31, 2025, primarily due to a $1.5 million increase in salaries and benefits[152]. - Income tax expense was $427,000 for the three months ended March 31, 2025, compared to $920,000 for the same period in 2024, driven by a decrease in pre-tax income[153]. Asset and Liability Management - Total assets increased by $1.9 million, or 0.1%, to $1.483 billion as of March 31, 2025, compared to $1.482 billion at December 31, 2024[131]. - Total deposits decreased by $2.4 million to $1.281 billion as of March 31, 2025, compared to $1.284 billion at December 31, 2024[134]. - The Company's total loans amounted to $1.088 billion, reflecting a decrease of $4.1 million, or 0.4%, from $1.093 billion at December 31, 2024[165]. - The Company's most liquid assets, cash and due from banks, totaled $61.3 million at March 31, 2025, while unpledged securities provided an additional liquidity source of $95.6 million[157]. - At March 31, 2025, 88.6% of total time deposits, amounting to $237.3 million, are set to mature within one year, indicating potential liquidity challenges if deposits are not retained[158]. Credit Quality - Nonperforming loans increased to $2.4 million at March 31, 2025, from $1.8 million at December 31, 2024, resulting in a nonperforming loans to total loans ratio of 0.22%[136]. - The allowance for credit losses (ACL) was $9.82 million at March 31, 2025, remaining stable compared to $9.81 million at December 31, 2024[136]. - Net charge-offs for the three months ended March 31, 2025, were $54,000, or 0.02% of average loans on an annualized basis[136]. - Provision for credit losses recorded a net recovery of $40,000 for the three months ended March 31, 2025, compared to a net recovery of $37,000 for the same period in 2024[150]. Capital Adequacy - Stockholders' equity increased by $911,000, or 0.6%, to $148.3 million at March 31, 2025, compared to $147.4 million at December 31, 2024[137]. - The Bank's Common Equity Tier 1 capital ratio was 14.94% as of March 31, 2025, exceeding the minimum requirement of 4.50% for capital adequacy purposes[164]. - The Bank's total capital ratio was 15.95% as of March 31, 2025, well above the 10.00% required to be considered well capitalized[164]. Interest Income and Expense - Interest income on a fully tax-equivalent (FTE) basis was $17.903 million for the three months ended March 31, 2025, compared to $18.025 million for the same period in 2024[129]. - Interest and dividend income decreased by $139,000, or 0.8%, to $17.8 million for the three months ended March 31, 2025, compared to $18.0 million for the same period in 2024[143]. - Interest income on loans decreased by $310,000, or 2.1%, to $14.5 million for the three months ended March 31, 2025, with the average balance of loans decreasing by $12.8 million to $1.08 billion[143]. - Interest income on taxable investment securities increased by $474,000, or 20.6%, to $2.8 million for the three months ended March 31, 2025, driven by a $42.6 million increase in average balances[143]. - Interest expense increased by $141,000, or 2.2%, to $6.5 million for the three months ended March 31, 2025, compared to $6.4 million for the same period in 2024[143]. Interest Rate Risk Management - The Company actively monitors interest rate risk, utilizing a simulation model to assess the impact of interest rate changes on net interest income and economic value of equity[169]. - EVE decreased by $28,500, resulting in a 13.5% change at an interest rate increase of 400 basis points[174]. - A decrease of 400 basis points led to a net interest income change of $7,355, reflecting a 3.5% increase[174]. - The earnings at risk increased by $3,481, representing a 6.8% change at an interest rate increase of 400 basis points[174]. - The EVE ratio at a flat interest rate is 14.83[174].