Financial Performance - Net income for Q4 2024 was $2.5 million, a decrease from $13.0 million in Q4 2023, primarily due to a prior period gain of $24.6 million from the sale of a subsidiary[5]. - Net income for the three months ended December 31, 2024, was $2,529,000, a decrease of 21.5% from $3,219,000 in the previous quarter[30]. - The company reported a net income of $12,966,000 for the year ended December 31, 2024, compared to $12,594,000 in 2023, which is an increase of approximately 2.95%[44]. - Adjusted net income (Non-GAAP) for the year ended December 31, 2024, was $24,316,000, compared to $22,550,000 in 2023, representing an increase of approximately 7.83%[44]. - Adjusted net income (Non-GAAP) for the year ended December 31, 2024, was $12,624,000, an increase of 18.4% from $10,764,000 in the previous year[46]. Income and Revenue - Net interest and dividend income increased by $396,000, or 3.6%, to $11.5 million compared to Q4 2023[11]. - Total Interest and Dividend Income for the year ended December 31, 2024, was $76,131,000, an increase of 22.4% compared to $62,225,000 for the year ended December 31, 2023[30]. - Total Noninterest Income for the year ended December 31, 2024, was $5,494,000, significantly down from $24,012,000 for the year ended December 31, 2023[30]. - Interest Income (GAAP) for the three months ended December 31, 2024, was $19,431,000, compared to $16,905,000 for the same period last year, representing a year-over-year increase of 15%[45]. - Net Interest Income (FTE) (Non-GAAP) for the year ended December 31, 2024, was $76,292,000, up from $62,380,000 in the previous year, reflecting a growth of 22%[45]. Assets and Liabilities - Total assets increased by $25.5 million, or 1.8%, to $1.48 billion from $1.46 billion[5]. - Total assets increased to $1,502,500,000 as of December 31, 2024, compared to $1,407,027,000 in 2023, reflecting a growth of approximately 6.76%[39]. - The company reported a total of $1,388,227,000 in liabilities, a slight increase from $1,381,095,000 in the previous quarter[35]. - Stockholders' equity increased by $7.5 million, or 5.4%, to $147.4 million at December 31, 2024, compared to $139.8 million at December 31, 2023[22]. - Cash and due from banks decreased by $18.7 million, or 27.3%, to $49.6 million at December 31, 2024, compared to $68.2 million at December 31, 2023[20]. Loans and Credit Quality - Total loans decreased by $17.8 million, or 1.6%, to $1.09 billion, with significant declines in consumer and residential real estate loans[5]. - Nonperforming loans to total loans improved to 0.16% at December 31, 2024, compared to 0.20% a year earlier[7]. - The allowance for credit losses (ACL) was $9.8 million at December 31, 2024, resulting in an ACL to total loans ratio of 0.90%[20]. - Nonperforming loans decreased to $1.8 million at December 31, 2024, with a nonperforming loans to total loans ratio of 0.16%[20]. - The provision for credit losses was $683,000, compared to a recovery of $1.4 million in Q4 2023, reflecting changes in loan growth and loss rates[13]. Efficiency and Ratios - The Efficiency Ratio for the three months ended December 31, 2024, was 71.68%, compared to 69.11% in the previous quarter, indicating a decline in operational efficiency[31]. - The Return on Average Assets for the three months ended December 31, 2024, was 0.65%, down from 0.84% in the previous quarter[31]. - The Allowance for Credit Losses to Total Loans ratio was 0.90% as of December 31, 2024, compared to 0.87% as of December 31, 2023, indicating a slight increase in credit risk[31]. - The Common Equity Tier 1 Capital ratio was 14.78% as of December 31, 2024, stable compared to 14.79% in the previous quarter[31]. - The annualized Return on Average Equity (GAAP) for the year ended December 31, 2024, was 19.42%, a decrease from 44.99% in the previous year[46]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.25 per share, payable on February 28, 2025[10]. - Earnings Per Common Share - Basic for the year ended December 31, 2024, was $2.53, compared to $2.45 for the year ended December 31, 2023, reflecting a 3.3% increase[31]. - Earnings per Common Share - Diluted (GAAP) for the three months ended December 31, 2024, was $0.46, down from $0.60 in the previous quarter, a decline of 23.3%[46]. - Book value per common share increased by $1.39 to $28.71 at December 31, 2024, compared to $27.32 at December 31, 2023[23]. - The Book Value Per Common Share increased to $28.71 as of December 31, 2024, from $27.53 as of December 31, 2023[31]. Future Outlook - The implementation of the Specialty Treasury Payments & Services program is expected to enhance revenue growth and core deposit base, with full utilization anticipated by Q3 2025[9].

Financial Performance - Net income for the three months ended September 30, 2024, was $3.2 million, an increase of $547,000 or 20.3% compared to $2.7 million for the same period in 2023[118]. - Net income for the nine months ended September 30, 2024, was $10.1 million, an increase of $479,000 compared to $9.6 million for the same period in 2023[126]. - Noninterest income decreased by $1.2 million, or 48.9%, to $1,233,000, primarily due to a decrease in insurance commissions following the sale of Exchange Underwriters[123]. - Noninterest income decreased by $3.7 million, or 48.8%, to $3.8 million, primarily due to a 99.9% decrease in insurance commissions[133]. Asset and Liability Management - Total assets increased by $105.7 million, or 7.3%, to $1.6 billion at September 30, 2024, compared to $1.5 billion at December 31, 2023[113]. - Total deposits increased by $86.7 million to $1.4 billion as of September 30, 2024, with significant increases in time deposits and brokered certificates of deposit[116]. - Cash and due from banks increased by $79.1 million, or 115.9%, to $147.3 million at September 30, 2024[113]. - Total interest-bearing liabilities rose to $1.102 billion, with total interest-bearing deposits increasing by $130 million, or 13.9%, to $1.1 billion[119]. - The company's liquidity position included $147.3 million in cash and due from banks, with unpledged securities totaling $95.8 million[139]. Loan Portfolio - Total loans decreased by $44.6 million, or 4.0%, to $1.07 billion at September 30, 2024, driven by declines in various loan categories[114]. - As of September 30, 2024, the company's total loans amounted to $1.07 billion, reflecting a decrease of $44.6 million, or 4.0%, from $1.11 billion at December 31, 2023[143]. - The company's Commercial Real Estate (CRE) portfolio totaled $464.4 million, a decrease of $2.8 million, or 0.6%, compared to December 31, 2023[144]. - The composition of the CRE portfolio includes Multifamily loans at $87.9 million (25.89%), Retail Space at $87.6 million (25.81%), and Warehouse Space at $45.2 million (13.31%) as of September 30, 2024[144]. - The company's total loans composition includes Residential loans at $338.9 million (31.8%) and Commercial loans at $464.4 million (43.6%) as of September 30, 2024[143]. Interest Income and Expense - Net interest income (FTE) for the three months ended September 30, 2024, was $11.516 million, compared to $10.760 million for the same period in 2023[110]. - Interest income on loans increased by $896,000, or 6.4%, to $14.9 million, with an average yield on loans rising by 47 basis points to 5.60%[118]. - Interest income on taxable investment securities surged by $2.3 million, or 249.9%, to $3.3 million, driven by a 272 basis point increase in average yield[118]. - Interest expense increased by $3.1 million, or 60.9%, to $8.3 million, primarily due to rising market interest rates[118]. - The average cost of interest-bearing deposits increased by 93 basis points, or 46.3%, compared to the same period in 2023[118]. Credit Losses and Provisions - The allowance for credit losses (ACL) was $9.5 million at September 30, 2024, resulting in an ACL to total loans ratio of 0.89%[114]. - The provision for credit losses recorded a net recovery of $41,000 for the three months ended September 30, 2024, compared to a provision of $406,000 in the same period in 2023[122]. - The provision for credit losses was a recovery of $114,000 for the nine months ended September 30, 2024, compared to a provision of $917,000 for the same period in 2023[132]. - Nonperforming loans decreased to $2.0 million at September 30, 2024, with a nonperforming loans to total loans ratio of 0.19%[114]. Capital Ratios - Stockholders' equity increased by $9.3 million, or 6.7%, to $149.1 million at September 30, 2024, driven by net income of $10.1 million[117]. - The Bank's Common Equity Tier 1 capital ratio was 14.79% as of September 30, 2024, compared to 13.64% at December 31, 2023[141]. - The actual total capital ratio was 15.76% as of September 30, 2024, exceeding the minimum required to be well capitalized[141]. Interest Rate Risk Management - The company's interest rate risk management strategy includes monitoring through a simulation model, with quarterly reports to identify and control interest rate risk[146]. - Estimated changes in Economic Value of Equity (EVE) indicate a potential decrease of $27.1 million (14.5%) with a +400 basis points change in interest rates[147]. - The company’s asset/liability management committee meets quarterly to review interest rate risk strategies and ensure compliance with board-approved guidelines[146].

Group 1: Earnings Performance - CB Financial Services reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, and compared to earnings of $0.52 per share a year ago, representing an earnings surprise of 7.84% [1] - The company posted revenues of $12.71 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.85%, although this is a decrease from year-ago revenues of $13.13 million [1] Group 2: Stock Performance and Outlook - CB Financial Services shares have increased by approximately 21.3% since the beginning of the year, slightly underperforming compared to the S&P 500's gain of 21.8% [2] - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $12.7 million, and for the current fiscal year, it is $2.19 on revenues of $49.9 million [4] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [5] - MainStreet Bank, another company in the same industry, is expected to report a quarterly loss of $0.04 per share, reflecting a year-over-year change of -105.2%, with revenues anticipated to be $16.03 million, down 18% from the previous year [5]

Financial Performance - Net income for Q3 2024 was $3.2 million, an increase of 19.8% from $2.7 million in Q3 2023[3] - Earnings per diluted common share rose to $0.60, up from $0.52 in the same period last year[3] - Net Income for Q3 2024 was $3,219,000, compared to $2,672,000 in Q3 2023, reflecting a 20.5% increase[27] - Adjusted Net Income (Non-GAAP) for Q3 2024 was $3,483,000, compared to $3,117,000 in Q3 2023, reflecting a year-over-year increase of 11.7%[39] - Earnings Per Common Share - Basic rose to $0.63 in Q3 2024, up from $0.52 in Q3 2023, marking a 21.2% increase[29] - Net Income (GAAP) for Q3 2024 was $3,219,000, an increase from $2,650,000 in Q2 2024, and $4,196,000 in Q1 2024[46] Asset and Liability Management - Total assets increased by $105.7 million, or 7.3%, to $1.6 billion compared to $1.5 billion at the end of 2023[4] - Total liabilities increased by $96.3 million, or 7.3%, to $1.4 billion at September 30, 2024[16] - Total deposits increased by $86.7 million to $1.35 billion as of September 30, 2024, with time deposits rising by $136.5 million[17] - Total loans decreased by $44.6 million, or 4.0%, to $1.07 billion, with significant declines in consumer and residential real estate loans[4] - Total Interest-Bearing Liabilities were $1,061,400 thousand with a cost of 2.79% for the current period, compared to $944,309 thousand and 1.69% previously[35] Income and Expense Analysis - Net interest and dividend income increased by $757,000, or 7.1%, to $11.5 million compared to Q3 2023[8] - Total Noninterest Expense decreased to $8,782,000 in Q3 2024 from $9,487,000 in Q3 2023, a reduction of 7.4%[27] - Interest expense on deposits surged by $3.1 million, or 66.1%, to $7.9 million due to rising market interest rates[9] - Interest Expense increased to $8,299,000 in Q3 2024, up from $5,157,000 in Q3 2023, a rise of 60.5%[27] Credit Quality and Losses - The provision for credit losses was a net recovery of $41,000, contrasting with a $406,000 provision in Q3 2023[10] - Nonperforming loans decreased to $2.0 million at September 30, 2024, resulting in a nonperforming loans to total loans ratio of 0.19%[15] - Net charge-offs for the three months ended September 30, 2024, were $73,000, or 0.03% of average loans on an annualized basis[15] - Provision for Credit Losses - Loans was $25,000 in Q3 2024, compared to a recovery of $291,000 in Q3 2023[27] Capital and Equity - Stockholders' equity increased by $9.3 million, or 6.7%, to $149.1 million at September 30, 2024, driven by $10.1 million of net income[20] - Common Equity Tier 1 Capital ratio increased to 14.79% from 14.62%, reflecting a stronger capital position[30] - Book value per common share increased by $1.75 to $29.07 at September 30, 2024[20] - Book Value per Common Share (GAAP) increased to $29.07 from $22.43 year-over-year[38] Operational Efficiency - Efficiency ratio improved to 69.11% from 73.89% in the previous quarter, indicating better cost management[30] - Return on average assets improved to 0.84% from 0.71% in the prior quarter, indicating enhanced asset efficiency[30] - Return on average equity rose to 8.80% from 7.58% in the previous quarter, demonstrating better profitability for shareholders[30] Market Expansion - The company opened a new state-of-the-art branch office in Uniontown, PA, as part of its market expansion strategy[6]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for CB Financial Services due to lower revenues, with the actual results being crucial for stock price movement [1] Earnings Expectations - CB Financial Services is expected to report quarterly earnings of $0.51 per share, reflecting a year-over-year decrease of 1.9% [2] - Revenues are projected to be $12.6 million, down 4% from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [3] - The Most Accurate Estimate for CB Financial Services is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -1.96%, suggesting a bearish sentiment among analysts [6] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [5] - CB Financial Services currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [7] Historical Performance - In the last reported quarter, CB Financial Services met the expected earnings of $0.52 per share, resulting in no surprise [8] - Over the past four quarters, the company has beaten consensus EPS estimates twice [8] Conclusion - Despite the potential for an earnings beat, CB Financial Services does not appear to be a compelling candidate for such an outcome, and investors should consider other factors before making decisions [9]

Group 1 - CB Financial Services (CBFV) shares increased by 5.4% to close at $29.39, marking a 13% gain over the past four weeks, driven by notable trading volume [1][2] - The stock reached a new 52-week high of $29.39, influenced by a recent 50 basis points interest rate cut by the Federal Reserve, which has improved investor sentiment towards banks [2] - The expected quarterly earnings for CBFV are $0.52 per share, unchanged from the previous year, with revenues projected at $12.6 million, a 4% decline from the year-ago quarter [3] Group 2 - The consensus EPS estimate for CBFV has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] - CBFV is part of the Zacks Banks - Northeast industry, where Merchants Bancorp (MBIN) has seen a 3.4% decline in its stock price, despite a 5.5% return over the past month [4] - Merchants Bancorp's EPS estimate has decreased by 4.8% over the past month to $1.42, reflecting a 15.5% decline compared to the previous year [5]

Financial Position - Total assets increased by $104.2 million, or 7.2%, to $1.6 billion at June 30, 2024, compared to $1.5 billion at December 31, 2023[112] - Total liabilities increased by $101.1 million, or 7.7%, to $1.42 billion at June 30, 2024[114] - Total deposits increased by $82.6 million to $1.35 billion as of June 30, 2024[114] - Stockholders' equity increased by $3.0 million, or 2.1%, to $142.9 million as of June 30, 2024, compared to $139.8 million at December 31, 2023, driven by $6.8 million of net income[116] - Total interest-earning assets increased to $1,419,054,000 with a net interest income of $23,140,000 for the six months ended June 30, 2024[130] - The company's Common Equity Tier 1 capital ratio was 14.62% as of June 30, 2024, compared to 13.64% on December 31, 2023[140] - Total capital to risk-weighted assets was 15.61% as of June 30, 2024, up from 14.61% at the end of 2023[140] - The company is categorized as "well capitalized" under regulatory frameworks as of June 30, 2024[139] Liquidity - Cash and due from banks increased by $74.4 million, or 109.0%, to $142.6 million at June 30, 2024[112] - As of June 30, 2024, the company's most liquid assets, including cash and due from banks, totaled $142.6 million[138] - The company had unpledged securities amounting to $97.6 million, providing an additional source of liquidity[138] - At June 30, 2024, the company had the ability to borrow up to $487.6 million from the FHLB of Pittsburgh, with $465.6 million currently available[138] - 91.5% of total time deposits, amounting to $316.5 million, are set to mature within one year, indicating potential liquidity challenges if not retained[138] - The company maintains a strong liquidity position and monitors it daily to ensure sufficient funds for current commitments[138] Loan and Interest Income - Total loans decreased by $31.7 million, or 2.9%, to $1.08 billion at June 30, 2024, driven by decreases in consumer, commercial real estate, and residential real estate loans[113] - Interest income on loans increased by $1.2 million, or 9.3%, to $14.7 million for the three months ended June 30, 2024, with an average yield on loans rising by 50 basis points to 5.50%[117] - The average yield on loans increased by 58 basis points to 5.50% for the six months ended June 30, 2024, compared to 4.92% for the same period in 2023[127] - The average balance of loans increased by $22.1 million to $1.08 billion for the six months ended June 30, 2024, compared to $1.06 billion for the same period in 2023[127] Interest Expense and Margin - Interest expense increased by $3.4 million, or 82.9%, to $7.5 million for the three months ended June 30, 2024, compared to $4.1 million for the same period in 2023[118] - The average cost of interest-bearing deposits increased by 109 basis points, or 65.8%, compared to the same period in 2023, leading to a $2.8 million increase in interest expense[117] - The net interest margin (GAAP) decreased to 3.18% for the three months ended June 30, 2024, compared to 3.29% for the same period in 2023[116] - The net interest margin (FTE) was 3.28% for the six months ended June 30, 2024, compared to 3.41% for the same period in 2023[130] Income and Expenses - Net income for the three months ended June 30, 2024, was $2.7 million, a decrease of $107,000 from $2.8 million for the same period in 2023[116] - Net income for the six months ended June 30, 2024, was $6.8 million, a decrease of $68,000 compared to $6.9 million for the same period in 2023[126] - Noninterest income decreased by $1.6 million, or 69.7%, to $688,000 for the three months ended June 30, 2024, compared to $2.3 million for the same period in 2023[123] - Noninterest income decreased by $2.5 million, or 48.7%, to $2.6 million for the six months ended June 30, 2024, primarily due to a 99.9% decrease in insurance commissions[133] - Noninterest expense decreased by $517,000, or 5.4%, to $9.0 million for the three months ended June 30, 2024, compared to $9.5 million for the same period in 2023[124] - Noninterest expense decreased by $1.1 million, or 6.0%, to $17.4 million for the six months ended June 30, 2024, mainly due to reduced salaries and benefits[135] - Income tax expense was $560,000 for the three months ended June 30, 2024, compared to $699,000 for the same period in 2023[125] - Income tax expense decreased by $347,000 to $1.5 million for the six months ended June 30, 2024, driven by an increase in non-taxable income[136] Credit Losses - The allowance for credit losses (ACL) was $9.5 million at June 30, 2024, with an ACL to total loans ratio of 0.88%[113] - Provision for credit losses recorded a net recovery of $36,000 for the three months ended June 30, 2024, compared to a provision of $432,000 for the same period in 2023[122] - Provision for credit losses was a recovery of $73,000 for the six months ended June 30, 2024, compared to a provision of $512,000 for the same period in 2023[132] Risk Management - Interest rate risk management is a key focus, with the company utilizing a simulation model to assess the impact of interest rate changes on net interest income and economic value of equity[141] - A hypothetical increase of 400 basis points in interest rates could lead to a decrease in economic value of equity by 16.1%[144] Other Information - The company is not currently involved in any legal proceedings that would materially affect its financial condition or operations[148]

Company Performance - CB Financial Services reported earnings of $0.62 per share, exceeding expectations of $0.53 by 16.98% [1] - The company posted revenues of $12.16 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 3.51% and down from $13.39 million year-over-year [6] - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $12.6 million, and for the current fiscal year, it is $2.22 on revenues of $51.3 million [8] Industry Outlook - The Zacks Industry Rank for Banks - Northeast is in the top 27% of over 250 Zacks industries, indicating a favorable outlook [4] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [3] Stock Performance - CB Financial Services shares have declined approximately 0.4% since the beginning of the year, while the S&P 500 has gained 16.5% [12] - The company has surpassed consensus EPS estimates two times over the last four quarters [11]

10 Explanation of Use of Non-GAAP Financial Measures In addition to financial measures presented in accordance with generally accepted accounting principles ("GAAP"), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other comp ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-36706 CB FINANCIAL SERVICES, INC. (Exact name of registrant as specified in its charter ...