CB Financial Services(US:CBFV)2025-08-08 17:09PART I – FINANCIAL INFORMATION Financial Statements (Unaudited) Presents CB Financial Services, Inc.'s unaudited consolidated financial statements for Q2 2025, covering financial condition, income, and cash flows Consolidated Statements of Financial Condition As of June 30, 2025, total assets increased to $1.52 billion from $1.48 billion at December 31, 2024, driven by growth in loans and cash, with total liabilities rising to $1.37 billion and stockholders' equity slightly increasing to $148.4 million Consolidated Statements of Financial Condition (Unaudited) | (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Total Cash and Due From Banks | $64,506 | $49,572 | | Total Securities | $267,171 | $262,153 | | Loans, Net | $1,101,102 | $1,082,821 | | TOTAL ASSETS | $1,517,984 | $1,481,564 | | LIABILITIES | | | | Total Deposits | $1,309,432 | $1,283,517 | | TOTAL LIABILITIES | $1,369,622 | $1,334,186 | | STOCKHOLDERS' EQUITY | | | | TOTAL STOCKHOLDERS' EQUITY | $148,362 | $147,378 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,517,984 | $1,481,564 | Consolidated Statements of Income Net income for Q2 2025 increased to $3.9 million, driven by higher net interest income and lower noninterest expenses Quarterly Income Statement Highlights (Unaudited) | (Dollars in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Interest and Dividend Income | $12,540 | $11,470 | | Total Noninterest Income | $931 | $688 | | Total Noninterest Expense | $8,748 | $8,984 | | Net Income | $3,949 | $2,650 | | Diluted EPS | $0.74 | $0.51 | Six-Month Income Statement Highlights (Unaudited) | (Dollars in thousands, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Interest and Dividend Income | $23,850 | $23,062 | | Total Noninterest Income | $1,718 | $2,604 | | Total Noninterest Expense | $18,549 | $17,412 | | Net Income | $5,858 | $6,847 | | Diluted EPS | $1.09 | $1.33 | Consolidated Statements of Comprehensive Income Total comprehensive income for Q2 2025 was $5.0 million, driven by higher net income and positive other comprehensive income Comprehensive Income Summary (Unaudited) | (Dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $3,949 | $2,650 | $5,858 | $6,847 | | Other Comprehensive Income (Loss), Net of Tax | $1,054 | $(271) | $2,919 | $(1,604) | | Total Comprehensive Income | $5,003 | $2,379 | $8,777 | $5,243 | Consolidated Statements of Changes In Stockholders' Equity Stockholders' equity increased by $0.98 million for the six months ended June 30, 2025, driven by net income and OCI, offset by share repurchases and dividends - Key changes in stockholders' equity for the six months ended June 30, 2025 include: Net Income of $5.9 million, Other Comprehensive Income of $2.9 million, treasury stock purchases of $6.8 million, and dividends paid of $2.5 million15 Consolidated Statements of Cash Flows Cash and cash equivalents increased by $14.9 million for the six months ended June 30, 2025, with positive contributions from operating and financing activities Six-Month Cash Flow Summary (Unaudited) | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $8,159 | $2,094 | | Net Cash Used in Investing Activities | $(10,931) | $(7,755) | | Net Cash Provided by Financing Activities | $17,706 | $80,038 | | Increase in Cash and Cash Equivalents | $14,934 | $74,377 | Notes to the Consolidated Financial Statements (Unaudited) The notes provide critical context to the financial statements, detailing accounting policies for ACL, loan portfolio, and off-balance-sheet commitments - The company's critical accounting policies, susceptible to significant change, relate to the Allowance for Credit Losses (ACL), valuation of foreclosed real estate, and impairment evaluations of securities and goodwill2431 - The company has one reportable segment: community banking services28 Loan Portfolio Composition | (Dollars in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Residential Real Estate | $329,324 | $337,990 | | Commercial Real Estate | $513,197 | $485,513 | | Construction | $40,680 | $54,705 | | Commercial and Industrial | $138,221 | $112,047 | | Consumer & Other | $89,402 | $102,371 | | Total Loans | $1,110,824 | $1,092,626 | - Nonperforming assets were $1.9 million at June 30, 2025, up slightly from $1.8 million at year-end 2024, with nonaccrual loans remaining stable at approximately $1.8 million70 - The Allowance for Credit Losses (ACL) on loans was $9.7 million at June 30, 2025, compared to $9.8 million at December 31, 2024, representing 0.88% of total loans617374 - Total off-balance-sheet credit commitments increased to $196.6 million at June 30, 2025, from $167.6 million at year-end 2024, primarily due to a rise in commercial lines of credit102 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, highlighting asset and loan growth, increased Q2 2025 net income, and strong capital, despite a six-month net income decline - Total assets increased by $36.4 million (2.5%) to $1.52 billion at June 30, 2025, from December 31, 2024138 - Total loans grew by $18.2 million (1.7%) in the first six months of 2025, driven by commercial real estate and commercial & industrial loan growth, offsetting declines in consumer lending143 - Total deposits increased by $25.9 million (2.0%), with a strategic shift towards core deposits (demand and savings) and away from time deposits141 - Q2 2025 net income increased by $1.3 million YoY to $3.9 million, primarily due to a $1.1 million increase in net interest income and a $236,000 decrease in noninterest expense146147158 - Six-month 2025 net income decreased by $989,000 YoY to $5.9 million, mainly due to a $2.1 million increase in salary/benefit costs (including a one-time reduction-in-force expense) and lower noninterest income compared to 2024, which included significant gains160171173 - Tangible book value per common share (Non-GAAP) increased by 4.0% to $27.88 at June 30, 2025, from $26.82 at December 31, 2024137145 Quantitative and Qualitative Disclosure about Market Risk The company's primary market risk is interest rate risk, managed via NII and EVE sensitivity modeling to rate shifts, remaining within policy limits - The company's most significant market risk is interest rate risk, which is monitored through simulation modeling of Net Interest Income (NII) and Economic Value of Equity (EVE)191192 Interest Rate Sensitivity Analysis (at June 30, 2025) | Change in Interest Rates (Basis Points) | EVE Percent Change | Net Interest Earnings at Risk Percent Change | | :--- | :--- | :--- | | +400 | (12.6)% | +9.6% | | +200 | (6.4)% | +4.8% | | +100 | (3.0)% | +2.5% | | Flat | 0.0% | 0.0% | | (100) | +2.5% | (2.5)% | | (200) | +3.5% | (5.2)% | Controls and Procedures Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025199 - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls200 PART II - OTHER INFORMATION Legal Proceedings The company is involved in various claims, but management believes no pending legal proceedings will materially affect its financial condition or operations - The company is not a party to any pending legal proceedings that are expected to have a material adverse effect on its financial condition or results of operations201 Risk Factors No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, are reported - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, indicating no material changes202 Issuer Purchases of Equity Securities During Q2 2025, the company repurchased 151,893 common shares at an average of $28.92, completing the July 2024 stock repurchase program Common Stock Purchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 56,397 | $28.33 | | May 2025 | 73,777 | $29.43 | | June 2025 | 21,719 | $28.74 | | Total | 151,893 | $28.92 | - The stock repurchase program announced on July 22, 2024, was completed on June 13, 2025204 Defaults Upon Senior Securities Not applicable; the company reports no defaults upon senior securities - Not applicable205 Mine Safety Disclosures Not applicable; the company has no mine safety disclosures to report - Not applicable206 Other Information No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q2 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended June 30, 2025207 Exhibits This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and XBRL financial statements - Exhibits filed include CEO and CFO certifications (Rule 13a-14(a) and Section 906) and XBRL interactive data files208