Financial Performance - Net income for Q1 2025 was $1.909 million, a decrease of 24.5% from $2.529 million in Q4 2024 and a decrease of 54.4% from $4.196 million in Q1 2024[3] - Basic Earnings Per Share (EPS) for the three months ended March 31, 2025, was $0.37, a decrease of 54.9% compared to $0.82 for the same period last year[32] - Diluted EPS for the same period was $0.35, down 57.3% from $0.82 year-over-year[32] - Adjusted Net Income (Non-GAAP) decreased to $1,909 thousand in Q1 2025 from $4,537 thousand in Q1 2024, a decline of 57.9%[40] - Net Income for Q1 2025 was $1,909 thousand, down 54.5% from $4,196 thousand in Q1 2024[40] Asset and Equity Management - Total assets increased by $1.9 million, or 0.1%, to $1.48 billion at March 31, 2025, compared to $1.48 billion at December 31, 2024[4] - Stockholders' equity increased by $911,000, or 0.6%, to $148.3 million as of March 31, 2025, compared to $147.4 million at December 31, 2024[22] - Book value per common share rose to $29.08 at March 31, 2025, an increase of $0.37 from $28.71 at December 31, 2024[23] - Total assets as of March 31, 2025, were $1,467,695, a decrease from $1,536,100 on December 31, 2024[36] Income and Expense Analysis - Total interest and dividend income decreased to $17.847 million for the three months ended March 31, 2025, compared to $19.431 million for the previous quarter[31] - Total noninterest expense increased to $9.802 million for the three months ended March 31, 2025, compared to $9.453 million for the previous quarter[31] - Noninterest income decreased by $1.1 million, or 58.9%, to $787,000 for Q1 2025, primarily due to a prior period gain on bank-owned life insurance[14] - Noninterest expenses increased by $1.4 million, or 16.3%, to $9.8 million for Q1 2025, largely due to $1.0 million in one-time expenses related to a reduction in force[15] Loan and Deposit Trends - Total loans decreased by $4.1 million, or 0.4%, to $1.088 billion as of March 31, 2025, with notable decreases in consumer, commercial, and industrial loans[25] - Total deposits decreased by $2.4 million to $1.281 billion as of March 31, 2025, with time deposits decreasing by $29.1 million[20] - The average yield on loans remained stable at 5.50% despite a 100 basis point reduction in the federal funds rate since September 2024[12] Efficiency and Profitability Ratios - Return on Average Assets decreased to 0.53% from 1.17% in the prior year, indicating a decline in asset efficiency[32] - Return on Average Equity fell to 5.24% from 12.03% year-over-year, showing a significant reduction in profitability[32] - The Efficiency Ratio increased to 81.02% from 62.40% a year ago, suggesting a decline in operational efficiency[32] - Common Equity Tier 1 Capital ratio remained strong at 14.94%, up from 14.50% year-over-year, indicating solid capital management[32] Interest Margin and Rate Analysis - Net interest margin improved to 3.27% for Q1 2025, up from 3.12% in Q4 2024, driven by a reduction in the cost of funds to 2.03% from 2.29%[4] - Net interest margin (FTE) for the quarter was 3.28%, up from 3.13% in the previous quarter[36] - Net interest rate spread (FTE) increased to 2.63% from 2.42% in the previous quarter[36] - Total interest-earning assets amounted to $1,404,371, with a yield of 5.17%[36] Credit Quality and Losses - Asset quality remained strong, with nonperforming loans to total loans at 0.22% at March 31, 2025[4] - The allowance for credit losses (ACL) was $9.82 million at March 31, 2025, maintaining a ratio of 0.90% to total loans[25] - Nonperforming loans increased to $2.4 million at March 31, 2025, resulting in a nonperforming loans to total loans ratio of 0.22%[25] - The company recorded a net recovery for credit losses of $40,000 during the current year[25] Future Initiatives - The company is implementing a Specialty Treasury Payments & Services program, with initial implementation expected near the end of 2025[8]
CB Financial Services(CBFV) - 2025 Q1 - Quarterly Results