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].
CB Financial Services(CBFV) - 2024 Q3 - Quarterly Report