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].
CB Financial Services(CBFV) - 2025 Q1 - Quarterly Report