Financial Performance - Net income decreased to $12,594,000 in 2024, down from $22,550,000 in 2023, a decline of 44.4%[179] - Earnings per common share (basic) fell to $2.45 in 2024 from $4.41 in 2023, a decrease of 44.4%[180] - Noninterest income significantly decreased to $5,494,000 in 2024 from $24,012,000 in 2023, a decline of 77.1%[179] - Total noninterest expense decreased by $3.1 million, or 8.1%, to $35.6 million for the year ended December 31, 2024, compared to $38.8 million for the year ended December 31, 2023[241] - Income tax expense decreased by $5.0 million to $2.7 million for the year ended December 31, 2024, compared to $7.7 million for the year ended December 31, 2023[242] - Salaries and employee benefits decreased by $3.1 million to $18.8 million for the year ended December 31, 2024, primarily due to no expense related to EU for the year[242] Asset and Liability Management - Total assets increased to $1,481,564,000 in 2024 from $1,456,091,000 in 2023, representing a growth of 1.8%[179] - Total liabilities increased by $17.9 million, or 1.4%, to $1.33 billion at December 31, 2024, compared to $1.32 billion at December 31, 2023[222] - Total deposits increased by $16.4 million, or 1.3%, to $1.28 billion as of December 31, 2024, compared to $1.27 billion at December 31, 2023[223] - The Bank's most liquid assets, cash and due from banks, totaled $49.6 million at December 31, 2024[276] - The Bank had funding commitments totaling $167.6 million at December 31, 2024, primarily for loan origination[278] Loan Portfolio - Total loans decreased by $17.8 million, or 1.6%, to $1.09 billion at December 31, 2024, compared to $1.11 billion at December 31, 2023[214] - Consumer loans decreased by $41.1 million, while commercial real estate loans increased by $18.4 million, contributing to the overall loan portfolio change[214] - The company's loan portfolio composition includes residential loans at $337.99 million (30.9%), commercial loans at $485.51 million (44.4%), and consumer loans at $70.51 million (6.5%) as of December 31, 2024[216] - The commercial real estate (CRE) portfolio totaled $485.5 million, an increase of $18.4 million, or 3.9%, compared to December 31, 2023[217] - The total amount of special mention and classified loans decreased by $29.0 million, or 41.8%, to $40.4 million at December 31, 2024, compared to $69.4 million at December 31, 2023[260] Credit Losses and Nonperforming Assets - The provision for credit losses on loans was $379,000 in 2024, compared to a recovery of $(284,000) in 2023[179] - The allowance for credit losses was $9.805 million as of December 31, 2024, compared to $9.707 million in the previous year[216] - Nonperforming assets decreased by $613,000 to $1.8 million at December 31, 2024, compared to $2.4 million at December 31, 2023[255] - Nonperforming loans decreased by $451,000 to $1.8 million at December 31, 2024, compared to $2.2 million at December 31, 2023[255] - The ratio of nonaccrual loans to total loans decreased from 0.20% at December 31, 2023, to 0.16% at December 31, 2024[257] Capital Adequacy - The company maintained a common equity tier 1 capital ratio of 14.78% in 2024, up from 13.64% in 2023, indicating improved capital strength[180] - 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[232] - Common Equity Tier 1 Capital increased to $152,238 thousand with a ratio of 14.78% as of December 31, 2024, compared to $143,654 thousand and 13.64% in 2023[287] - Total Capital reached $162,733 thousand with a ratio of 15.79% in 2024, up from $153,861 thousand and 14.61% in 2023[287] - The Company’s actual Tier I Leverage Capital was $152,238 thousand, representing 9.98% of adjusted total assets, down from 10.19% in 2023[287] Interest Income and Expense - Net interest and dividend income rose to $46,068,000 in 2024, up from $44,553,000 in 2023, an increase of 3.4%[179] - Interest income on loans increased by $4.7 million, or 8.7%, to $59.4 million for the year ended December 31, 2024, compared to $54.7 million for the year ended December 31, 2023[238] - Interest expense increased by $12.4 million, or 70.1%, to $30.1 million for the year ended December 31, 2024, compared to $17.7 million for the year ended December 31, 2023[236] - Total interest income from loans decreased by $158,000 to $4.781 million for the year ended December 31, 2024, compared to $4.939 million for the year ended December 31, 2023[248] - Total interest expense on deposits increased by $2.127 million to $12.008 million for the year ended December 31, 2024[248] Interest Rate Risk - The Company’s interest rate risk analysis indicates that a 400 basis point increase in interest rates would decrease the Economic Value of Equity (EVE) by $32,439 thousand, a 15.4% change[295] - A flat interest rate scenario shows an EVE of $210,357 thousand, with a net interest income at risk of $49,673 thousand[295] - The Company’s Asset/Liability Management Committee meets quarterly to evaluate and manage interest rate risk, ensuring compliance with established guidelines[289] - The Company utilizes a simulation model to monitor interest rate risk, measuring impacts on both capital and earnings perspectives[290] - The EVE ratio reflects the sensitivity of the Company to interest rate changes, with a base case scenario assuming no change in interest rates[292]
CB Financial Services(CBFV) - 2024 Q4 - Annual Report