CB Financial Services(US:CBFV)2025-11-07 19:22Financial Performance - Net loss for the three months ended September 30, 2025, was $5.7 million, a decrease of $8.9 million compared to net income of $3.2 million for the same period in 2024[151]. - Net income for the nine months ended September 30, 2025, was $164,000, a decrease of $9.9 million compared to $10.1 million for the same period in 2024[167]. - Noninterest income decreased by $12.8 million, or 333.3%, resulting in a loss of $9.0 million for the nine months ended September 30, 2025, primarily due to a loss on securities repositioning of $11.8 million[180]. Asset and Liability Management - Total assets increased by $64.0 million, or 4.3%, to $1.55 billion as of September 30, 2025, compared to $1.48 billion at December 31, 2024[141]. - Total deposits rose by $50.9 million, or 4.0%, to $1.33 billion as of September 30, 2025, compared to $1.28 billion at December 31, 2024[145]. - Cash and due from banks increased by $6.3 million, or 12.7%, to $55.9 million at September 30, 2025, compared to $49.6 million at December 31, 2024[146]. - The Company had liquid assets of $55.9 million in cash and due from banks, with additional unpledged securities totaling $93.2 million as of September 30, 2025[189]. Loan Portfolio - Total loans increased by $50.8 million, or 4.6%, to $1.14 billion at September 30, 2025, compared to $1.09 billion at December 31, 2024[146]. - The composition of the loan portfolio included 29.2% residential real estate, 47.2% commercial real estate, and 12.6% commercial and industrial loans as of September 30, 2025[198]. - Total Nonowner Occupied CRE loans amounted to $423.5 million, with an average loan size of $1,332 and an average loan-to-value (LTV) ratio of 58.98%[199]. - Total Owner Occupied CRE loans were $115.9 million, with an average loan size of $577 and an average LTV ratio of 54.10%[200]. Interest Income and Expense - Net interest income on a fully tax-equivalent basis increased to $13.2 million for the three months ended September 30, 2025, compared to $11.5 million for the same period in 2024, reflecting a net interest margin of 3.67%[136]. - Interest income on loans increased by $1.0 million, or 6.9%, to $16.0 million for the three months ended September 30, 2025, driven by a $56.1 million increase in the average balance of loans[155]. - Interest expense decreased by $2.1 million, or 24.8%, to $6.2 million for the three months ended September 30, 2025, compared to $8.3 million for the same period in 2024[155]. - Net interest and dividend income increased by $1.6 million, or 14.2%, to $13.1 million for the three months ended September 30, 2025, compared to $11.5 million for the same period in 2024[152]. Capital and Equity - Stockholders' equity increased by $5.1 million, or 3.5%, to $152.5 million at September 30, 2025, compared to $147.4 million at December 31, 2024[149]. - Tangible book value per common share increased by $1.74, or 6.5%, to $28.56 compared to $26.82 at December 31, 2024[150]. - At September 30, 2025, the Bank's Common Equity Tier 1 capital ratio was 14.19%, compared to 14.78% at December 31, 2024, indicating a strong capital position[197]. Credit Quality - The allowance for credit losses (ACL) was $10.1 million at September 30, 2025, with an ACL to total loans ratio of 0.89%[146]. - Nonperforming loans increased to $2.2 million at September 30, 2025, with a nonperforming loans to total loans ratio of 0.19%[146]. - Provision for credit losses was recorded at $259,000 for the three months ended September 30, 2025, with $336,000 attributed to loans[162]. - For the nine months ended September 30, 2025, net provision for credit losses was $227,000, compared to a recovery of $114,000 for the same period in 2024, reflecting loan growth and qualitative factors[179]. Interest Rate Risk Management - The Company actively manages interest rate risk through an Asset/Liability Management Committee, which meets quarterly to evaluate and implement strategies[201]. - Interest rate risk is monitored using a simulation model that assesses the impact on net interest income and economic value of equity (EVE) under various interest rate scenarios[202]. - As of September 30, 2025, a 400 basis point increase in interest rates would result in a decrease of $34.9 million (15.5%) in EVE[207]. - The Company emphasizes the importance of interest rate risk analysis to ensure compliance with policy guidelines and to mitigate potential financial impacts[203].