CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM:
CBFV), the holding company of Community Bank (the “Bank”), today
announced its second quarter and year-to-date 2024 financial
results.
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
(Dollars in thousands, except per share
data) (Unaudited)
Net Income (GAAP)
$
2,650
$
4,196
$
12,966
$
2,672
$
2,757
$
6,847
$
6,915
Net Income Adjustments
24
(1,000
)
(9,905
)
29
78
(976
)
(49
)
Adjusted Net Income (Non-GAAP) (1)
$
2,674
$
3,196
$
3,061
$
2,701
$
2,835
$
5,871
$
6,866
Earnings per Common Share - Diluted
(GAAP)
$
0.51
$
0.82
$
2.52
$
0.52
$
0.54
$
1.33
$
1.35
Adjusted Earnings per Common Share -
Diluted (Non-GAAP) (1)
$
0.52
$
0.62
$
0.60
$
0.53
$
0.55
$
1.14
$
1.34
(1)
Refer to Explanation of Use of Non-GAAP
Financial Measures and reconciliation of adjusted net income and
adjusted earnings per common share - diluted as presented later in
this Press Release.
2024 Second Quarter Financial
Highlights
(Comparisons to three months ended June 30, 2023 unless
otherwise noted)
- Net income was $2.7 million, compared to $2.8 million. Results
were impacted by the December 2023 sale of the Bank’s subsidiary
insurance agency, Exchange Underwriters (“EU”), which drove
decreases in noninterest income and noninterest expense.
- Adjusted net income (Non-GAAP) was $2.7 million compared to
$2.8 million.
- Income before income tax expense was $3.2 million compared to
$3.5 million.
- Adjusted pre-provision net revenue (PPNR) (Non-GAAP) was $3.2
million compared to $4.0 million.
- Earnings per diluted common share (EPS) decreased to $0.51 from
$0.54.
- Adjusted earning per common share - diluted (Non-GAAP) was
$0.52, compared to $0.55.
- Return on average assets (annualized) was 0.71%, compared to
0.79%.
- Adjusted return on average assets (annualized) (Non-GAAP) was
0.72%, compared to 0.81%.
- Return on average equity (annualized) was 7.58%, compared to
9.38%.
- Adjusted return on average equity (annualized) (Non-GAAP) was
7.65%, compared to 9.64%.
- Net interest margin (“NIM”) declined to 3.18% from 3.29%.
- Net interest and dividend income was $11.5 million, compared to
$11.1 million.
- Noninterest income decreased to $688,000, compared to $2.3
million. The significant change in noninterest income was driven by
a $1.5 million decrease in insurance commissions due to the sale of
EU.
- Noninterest expense decreased to $9.0 million, compared to $9.5
million, due to decreases in compensation and benefits, intangible
amortization and FDIC assessment expenses, partially offset by
increases in data processing, occupancy and Pennsylvania shares tax
expenses.
(Amounts at June 30, 2024; comparisons to December 31, 2023,
unless otherwise noted)
- Total assets increased $103.8 million, or 7.1%, to $1.6 billion
from $1.5 billion.
- Total loans decreased $31.7 million, or 2.9%, to $1.08 billion
compared to $1.11 billion, and included decreases in consumer,
commercial real estate and residential real estate loans of $21.3
million, $8.4 million and $5.1 million, respectively, partially
offset by increases in commercial and industrial loans, other loans
and construction loans of $1.1 million, $1.1 million and $922,000,
respectively. The consumer loan portfolio is primarily comprised of
indirect automobile loans and decreased as a result of the
discontinuation of that product as of June 30, 2023. Excluding the
$21.6 million decrease in indirect automobile loans, total loans
decreased $10.1 million, or 0.9%. In total, $62.3 million of loans
have paid off since December 31, 2023.
- Nonperforming loans to total loans was 0.17% at June 30, 2024,
compared to 0.20% at December 31, 2023.
- Total deposits were $1.35 billion, an increase of $82.6
million, compared to $1.27 billion.
- Book value per share was $27.79, compared to $27.53 as of March
31, 2024 and $27.32 as of December 31, 2023.
- Tangible book value per share (Non-GAAP) was $25.83, compared
to $25.52 as of March 31, 2024 and $25.23 as of December 31, 2023.
The year-to-date change was due to an increase in stockholders’
equity primarily related to current period net income of $6.8
million, partially offset by a $1.6 million increase in accumulated
other comprehensive loss and the payment of $2.6 million in
dividends since December 31, 2023.
Management Commentary
President and CEO John H. Montgomery commented, “The first half
of the year has reflected ongoing trends of net interest margin
pressure due to heightened funding costs that have been driven by
prevailing market rates, however, our previously announced balance
sheet strategies and continued commercial loan production are
contributing to stabilization and improvement in this area.
While the yield on our loan portfolio continues to improve,
total loans decreased $17.6 million, or 1.6%, from March 31, 2024.
Runoff in the formerly exited indirect lending portfolio of $10.2
million was partially offset by a $9.1 million increase in more
profitable commercial and industrial loans. Commercial and
residential real estate loans declined $11.7 million and $4.2
million, respectively, with the former largely related to the
Bank’s decision to exit certain relationships along with expected
asset sales and the later related to our repositioning of our
residential mortgage program. Notably, asset quality remains
robust, with nonperforming loans declining to $1.9 million (0.17%
of total loans) from $2.2 million (0.20% of total loans) in the
prior quarter.
Overall, deposit movements continued during the quarter,
shifting from non-interest and lower-cost interest-bearing accounts
to higher-cost time deposits. Total deposits remained relatively
stable, with a slight increase, largely due to growth in our
interest-bearing demand deposits and time deposits.
During the quarter, we continued progress on our strategic
initiatives by implementing a new enterprise-wide loan origination
system and a redesigned residential mortgage program. The loan
origination system utilizes market leading technology which was
carefully customized and enhanced to streamline and optimize our
credit delivery process, increase transparency and communication
with our clients - ensuring that we provide a best-in-class credit
delivery process. Our residential mortgage program redesign was
developed to provide expanded product offerings to our market,
mitigate risk and generate additional sources of non-interest
income through scalability.
Additionally, we completed the construction and celebrated the
opening of a state-of-the-art branch office serving as a regional
service center in Rostraver, PA and added a news section to our
upgraded website, www.cb.bank, to provide more timely
communications to our market.
Last, in our continual focus on the client experience, we
created a new retail support team staffed with experienced
personnel to assist our bankers as they provide a higher level of
personalized service to our clients.
We firmly believe that all stakeholders benefit from the
continued investment in our franchise, our commitment to our
long-term plan and our focus on delivering an exceptional client
experience.”
Dividend Declaration
The Company’s Board of Directors declared a $0.25 quarterly cash
dividend per outstanding share of common stock, payable on or about
August 30, 2024, to stockholders of record as of the close of
business on August 15, 2024.
2024 Second Quarter Financial
Review
Net Interest and Dividend
Income
Net interest and dividend income increased $350,000, or 3.1%, to
$11.5 million for the three months ended June 30, 2024 compared to
$11.1 million for the three months ended June 30, 2023.
- NIM (GAAP) decreased to 3.18% for the three months ended June
30, 2024 compared to 3.29% for the three months ended June 30,
2023. Fully tax equivalent (FTE) NIM (Non-GAAP) decreased 11 basis
points (“bps”) to 3.19% for the three months ended June 30, 2024
compared to 3.30% for the three months ended June 30, 2023.
- Interest and dividend income increased $3.7 million, or 24.6%,
to $18.9 million for the three months ended June 30, 2024 compared
to $15.2 million for the three months ended June 30, 2023.
- Interest income on loans increased $1.2 million, or 9.3%, to
$14.7 million for the three months ended June 30, 2024 compared to
$13.4 million for the three months ended June 30, 2023. The average
yield on loans increased 50 bps to 5.50% compared to 5.00%
resulting in a $1.3 million increase in interest income on loans.
The average balance of loans decreased $2.9 million to $1.076
billion from $1.079 billion, causing a $77,000 decrease in interest
income on loans. The increase in loan yield has been driven by a
reduction in lower yielding consumer loans due to the
discontinuation of the indirect automobile loan product with the
redeployment of those funds into higher yielding commercial loan
products.
- Interest income on taxable investment securities increased $1.9
million, or 199.4%, to $2.8 million for the three months ended June
30, 2024 compared to $950,000 for the three months ended June 30,
2023 driven by a 246 bp increase in average yield coupled with a
$56.7 million increase in average balances. The increase in the
average yield was the result of the Bank implementing a balance
sheet repositioning strategy of its portfolio of available-for-sale
securities during the fourth quarter of 2023. The Bank sold $69.3
million in market value of its lower yielding U.S. government
agency, mortgage-backed and municipal securities with an average
yield of 1.89% and purchased $69.3 million of higher yielding
mortgage-backed and collateralized mortgage obligation securities
with an average yield of 5.49%. The increase in volume was driven
by a $74.3 million increase in the average balance of
collateralized loan obligation (“CLO”) securities as the Bank
executed a leverage strategy to purchase these assets funded with
brokered certificates of deposits.
- Interest income on interest-earning deposits at other banks
increased $592,000, to $1.3 million for the three months ended June
30, 2024 compared to $721,000 for the three months ended June 30,
2023 driven by a $47.7 million increase in average balances,
partially offset by a 19 bp decrease in the average yield. The
volume increase was due in part to $30.5 million in cash received
from the December 2023 sale of EU.
- Interest expense increased $3.4 million, or 82.9%, to $7.5
million for the three months ended June 30, 2024 compared to $4.1
million for the three months ended June 30, 2023.
- Interest expense on deposits increased $3.2 million, or 83.9%,
to $7.1 million for the three months ended June 30, 2024 compared
to $3.8 million for the three months ended June 30, 2023. Rising
market interest rates led to the repricing of interest-bearing
demand and money market deposits and a shift in deposits from
noninterest-bearing and interest-bearing demand deposits into money
market and time deposits which resulted in a 109 bp, or 65.8%,
increase in the average cost of interest-bearing deposits compared
to the three months ended June 30, 2023. This accounted for a $2.8
million increase in interest expense. Additionally,
interest-bearing deposit balances increased $103.6 million, or
11.1%, to $1.0 billion as of June 30, 2024 compared to $930.1
million as of June 30, 2023, accounting for a $462,000 increase in
interest expense.
- Interest expense on borrowed funds increased $163,000, or
67.6%, to $404,000 for the three months ended June 30, 2024
compared to $241,000 for the three months ended June 30, 2023. The
average balance of borrowed funds increased $13.2 million due to
$20.0 million of FHLB long-term advances added during the second
quarter of 2023. The increase in the average balance accounted for
a $158,000 increase in interest expense.
Provision for Credit Losses
The provision for credit losses recorded for the three months
ended June 30, 2024 was a net recovery of $36,000. The provision
for credit losses - loans was $12,000 and was primarily due to an
increase in the required reserve for individually analyzed loans,
partially offset by the impact of a decrease in loan balances while
the provision for credit losses - unfunded commitments was a
recovery of $48,000 and was due to a decrease in loss rates. This
compared to a $432,000 provision for credit losses recorded for the
three months ended June 30, 2023 and was required primarily due to
loan growth coupled with a modeled slowdown in loan prepayment
speeds.
Noninterest Income
Noninterest income decreased $1.6 million, or 69.7%, to $688,000
for the three months ended June 30, 2024, compared to $2.3 million
for the three months ended June 30, 2023. This decrease resulted
primarily from a $1.5 million decrease in insurance commissions as
no income was recognized for the three months ended June 30, 2024
due to the December 2023 sale of EU, compared to a full quarter of
income recognized for the three months ended June 30, 2023.
Noninterest Expense
Noninterest expense decreased $517,000, or 5.4%, to $9.0 million
for the three months ended June 30, 2024 compared to $9.5 million
for the three months ended June 30, 2023. Salaries and benefits
decreased $806,000, or 15.4%, to $4.4 million primarily due to no
expense related to EU recognized for the three months ended June
30, 2024 due to the December 2023 sale, compared to $823,000 of
expense recognized for the three months ended June 30, 2023,
partially offset by merit increases and revenue producing staff
additions. Intangible amortization decreased $182,000 as a portion
of the Bank’s core deposit intangible was fully amortized in
February 2024 and EU intangible amortization of $47,000 was
realized during the three months ended June 30, 2023. FDIC
assessment expense decreased $63,000 due to a decrease in the
assessment rate. Data processing expense increased $293,000 costs
associated with the implementation of a new loan origination system
and financial dashboard platform. Occupancy expenses increased
$151,000 due to $192,000 of environmental remediation costs related
to a construction project on one of the Bank’s office location,
partially offset by $42,000 of EU occupancy expenses realized
during the three months ended June 30, 2023. Pennsylvania shares
tax expense increased $102,000 due to a higher taxable base due to
the increase in equity resulting from the sale of EU.
Statement of Financial Condition
Review
Assets
Total assets increased $103.8 million, or 7.1%, to $1.56 billion
at June 30, 2024, compared to $1.46 billion at December 31,
2023.
- Cash and due from banks increased $74.4 million, or 109.0%, to
$142.6 million at June 30, 2024, compared to $68.2 million at
December 31, 2023.
- Securities increased $61.7 million, or 29.8%, to $268.8 million
at June 30, 2024, compared to $207.1 million at December 31, 2023.
The securities balance was primarily impacted by the purchase of
$69.8 million of CLO securities, partially offset by $6.8 million
of principal repayments on amortizing securities.
Loans and Credit Quality
- Total loans decreased $31.7 million, or 2.9%, to $1.08 billion
at June 30, 2024 compared to $1.11 billion at December 31, 2023.
This was driven by decreases in consumer, commercial real estate
and residential real estate loans of $21.3 million, $8.4 million
and $5.1 million, respectively, partially offset by increases in
commercial and industrial loans, other loans and construction loans
of $1.1 million, $1.1 million and $922,000, respectively. The
decrease in consumer loans resulted from a reduction in indirect
automobile loan production due to rising market interest rates and
the discontinuation of this product offering as of June 30, 2023.
This portfolio is expected to continue to decline as resources are
allocated and production efforts are focused on more profitable
commercial products. In total, $62.3 million of loans have paid off
since December 31, 2023.
- The allowance for credit losses (ACL) was $9.5 million at June
30, 2024 and $9.7 million at December 31, 2023. As a result, the
ACL to total loans was 0.88% at June 30, 2024 and 0.87% at December
31, 2023. During the current year, the Company recorded a net
recovery of credit losses of $73,000.
- Net charge-offs for the three months ended June 30, 2024 were
$67,000, or 0.02% of average loans on an annualized basis. Net
charge-offs for the three months ended June 30, 2023 were $96,000,
or 0.04% of average loans on an annualized basis. Net charge-offs
for the six months ended June 30, 2024 were $50,000. Net recoveries
for the six months ended June 30, 2023 were $660,000 primarily due
to recoveries totaling $750,000 related to a prior year $2.7
million charged-off commercial and industrial loan.
- Nonperforming loans, which include nonaccrual loans and
accruing loans past due 90 days or more, were $1.9 million at June
30, 2024 and $2.2 million at December 31, 2023. Nonperforming loans
to total loans ratio was 0.17% at June 30, 2024 and 0.20% at
December 31, 2023.
Total liabilities increased $100.7 million, or 7.7%, to $1.4
billion at June 30, 2024 compared to $1.3 billion at December 31,
2023.
Deposits
- Total deposits increased $82.6 million to $1.35 billion as of
June 30, 2024 compared to $1.27 billion at December 31, 2023. Time
deposits increased $115.4 million and money market deposits
increased $28.9 million while interest-bearing demand, savings and
non interest-bearing demand deposits decreased $38.3 million, $15.6
million and $7.8 million, respectively. Deposit changes were
primarily the result of the current interest rate environment
causing a shift in deposit products to higher priced money market
and time deposits. Additionally, the Bank added $63.1 million of
brokered certificates of deposit during the period. Brokered
certificates of deposit totaled $92.1 million as of June 30, 2024
compared to $29.0 million at December 31, 2023, all mature within
three months and were utilized to fund the purchase of floating
rate CLO securities. At June 30, 2024, FDIC insured deposits
totaled approximately 62.6% of total deposits while an additional
15.0% of deposits were collateralized with investment
securities.
Accrued Interest Payable and Other
Liabilities
- Accrued interest payable and other liabilities increased $18.1
million, or 125.5%, to $32.5 million at June 30, 2024, compared to
$14.4 million at December 31, 2023 primarily due to the purchase of
$14.7 million of syndicated loans and $7.6 million of securities
which were unsettled at the end of the period.
Stockholders’ Equity
Stockholders’ equity increased $3.0 million, or 2.1%, to $142.9
million at June 30, 2024, compared to $139.8 million at December
31, 2023. The key factor positively impacting stockholders’ equity
was $6.8 million of net income for the current period, partially
offset by a $1.6 million increase in accumulated other
comprehensive loss and the payment of $2.6 million in dividends
since December 31, 2023.
Book value per share
Book value per common share was $27.79 at June 30, 2024 compared
to $27.32 at December 31, 2023, an increase of $0.47.
Tangible book value per common share (Non-GAAP) was $25.83 at
June 30, 2024, compared to $25.23 at December 31, 2023, an increase
of $0.60.
Refer to “Explanation of Use of Non-GAAP Financial Measures” at
the end of this Press Release.
About CB Financial Services,
Inc.
CB Financial Services, Inc. is the bank holding company for
Community Bank, a Pennsylvania-chartered commercial bank. Community
Bank operates its branch network in southwestern Pennsylvania and
West Virginia. Community Bank offers a broad array of retail and
commercial lending and deposit services.
For more information about CB Financial Services, Inc. and
Community Bank, visit our website at www.communitybank.tv.
Statement About Forward-Looking
Statements
Statements contained in this press release that are not
historical facts may constitute forward-looking statements as that
term is defined in the Private Securities Litigation Reform Act of
1995 and such forward-looking statements are subject to significant
risks and uncertainties. The Company intends such forward-looking
statements to be covered by the safe harbor provisions contained in
the Act. The Company’s ability to predict results or the actual
effect of future plans or strategies is inherently uncertain.
Factors which could have a material adverse effect on the
operations and future prospects of the Company and its subsidiaries
include, but are not limited to, general and local economic
conditions, changes in market interest rates, deposit flows, demand
for loans, real estate values and competition, competitive products
and pricing, the ability of our customers to make scheduled loan
payments, loan delinquency rates and trends, our ability to manage
the risks involved in our business, our ability to control costs
and expenses, inflation, market and monetary fluctuations, changes
in federal and state legislation and regulation applicable to our
business, actions by our competitors, and other factors that may be
disclosed in the Company’s periodic reports as filed with the
Securities and Exchange Commission. These risks and uncertainties
should be considered in evaluating forward-looking statements and
undue reliance should not be placed on such statements. The Company
assumes no obligation to update any forward-looking statements
except as may be required by applicable law or regulation.
CB FINANCIAL SERVICES,
INC.
SELECTED CONSOLIDATED
FINANCIAL INFORMATION
(Dollars in thousands, except share and
per share data) (Unaudited)
Selected Financial Condition
Data
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Assets
Cash and Due From Banks
$
142,600
$
73,691
$
68,223
$
52,597
$
78,093
Securities
268,769
232,276
207,095
172,904
181,427
Loans Held for Sale
632
200
—
—
—
Loans
Real Estate:
Residential
342,689
346,938
347,808
346,485
338,493
Commercial
458,724
470,430
467,154
466,910
458,614
Construction
44,038
44,323
43,116
41,874
44,523
Commercial and Industrial
112,395
103,313
111,278
100,873
102,266
Consumer
90,357
100,576
111,643
122,516
134,788
Other
30,491
30,763
29,397
23,856
22,470
Total Loans
1,078,694
1,096,343
1,110,396
1,102,514
1,101,154
Allowance for Credit Losses
(9,527
)
(9,582
)
(9,707
)
(10,848
)
(10,666
)
Loans, Net
1,069,167
1,086,761
1,100,689
1,091,666
1,090,488
Premises and Equipment, Net
20,326
19,548
19,704
18,524
18,582
Bank-Owned Life Insurance
23,910
23,763
25,378
25,227
25,082
Goodwill
9,732
9,732
9,732
9,732
9,732
Intangible Assets, Net
353
617
958
2,177
2,622
Accrued Interest Receivable and Other
Assets
24,360
26,501
24,312
26,665
26,707
Total Assets
$
1,559,849
$
1,473,089
$
1,456,091
$
1,399,492
$
1,432,733
Liabilities
Deposits
Noninterest-Bearing Demand Accounts
$
269,964
$
275,182
$
277,747
$
305,145
$
316,098
Interest-Bearing Demand Accounts
324,688
323,134
362,994
357,381
374,654
Money Market Accounts
229,998
208,375
201,074
189,187
185,814
Savings Accounts
179,081
190,206
194,703
207,148
217,267
Time Deposits
346,037
265,597
230,641
177,428
169,482
Total Deposits
1,349,768
1,262,494
1,267,159
1,236,289
1,263,315
Other Borrowings
34,698
34,688
34,678
34,668
34,658
Accrued Interest Payable and Other
Liabilities
32,501
34,317
14,420
13,689
18,171
Total Liabilities
1,416,967
1,331,499
1,316,257
1,284,646
1,316,144
Stockholders’ Equity
142,882
141,590
139,834
114,846
116,589
Total Liabilities and Stockholders’
Equity
$
1,559,849
$
1,473,089
$
1,456,091
$
1,399,492
$
1,432,733
(Dollars in thousands, except share and
per share data) (Unaudited)
Three Months Ended
Six Months Ended
Selected Operating Data
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Interest and Dividend Income:
Loans, Including Fees
$
14,670
$
14,838
$
14,804
$
14,049
$
13,426
$
29,508
$
25,797
Securities:
Taxable
2,844
2,303
1,164
940
950
5,148
1,914
Tax-Exempt
—
—
33
41
42
—
83
Dividends
27
27
32
25
25
54
49
Other Interest and Dividend Income
1,398
818
872
819
760
2,216
1,605
Total Interest and Dividend Income
18,939
17,986
16,905
15,874
15,203
36,926
29,448
Interest Expense:
Deposits
7,065
5,991
5,336
4,750
3,842
13,056
6,346
Short-Term Borrowings
—
—
26
—
3
—
5
Other Borrowings
404
404
407
407
238
808
393
Total Interest Expense
7,469
6,395
5,769
5,157
4,083
13,864
6,744
Net Interest and Dividend Income
11,470
11,591
11,136
10,717
11,120
23,062
22,704
Provision (Recovery) for Credit Losses -
Loans
12
(143
)
(1,147
)
291
492
(130
)
572
(Recovery) Provision for Credit Losses -
Unfunded Commitments
(48
)
106
(273
)
115
(60
)
57
(60
)
Net Interest and Dividend Income After Net
(Recovery) Provision for Credit Losses
11,506
11,628
12,556
10,311
10,688
23,135
22,192
Noninterest Income:
Service Fees
354
415
460
466
448
769
892
Insurance Commissions
1
2
969
1,436
1,511
3
3,434
Other Commissions
22
62
60
94
224
84
368
Net Gain (Loss) on Sales of Loans
9
22
2
—
(5
)
30
(3
)
Net Loss on Securities
(31
)
(166
)
(9,830
)
(37
)
(100
)
(197
)
(332
)
Net Gain on Purchased Tax Credits
12
12
7
7
7
25
14
Gain on Sale of Subsidiary
—
—
24,578
—
—
—
—
Net Gain on Disposal of Premises and
Equipment
—
274
—
—
—
274
11
Income from Bank-Owned Life Insurance
147
148
151
145
139
295
280
Net Gain on Bank-Owned Life Insurance
Claims
—
915
—
—
1
915
303
Other Income
174
232
121
301
44
406
113
Total Noninterest Income
688
1,916
16,518
2,412
2,269
2,604
5,080
Noninterest Expense:
Salaries and Employee Benefits
4,425
4,576
6,224
5,369
5,231
9,001
10,310
Occupancy
940
749
810
698
789
1,689
1,490
Equipment
298
264
298
265
283
562
501
Data Processing
1,011
692
726
714
718
1,703
1,575
Federal Deposit Insurance Corporation
Assessment
161
129
189
189
224
290
376
Pennsylvania Shares Tax
297
297
217
217
195
595
455
Contracted Services
390
281
299
286
434
671
581
Legal and Professional Fees
208
212
434
320
246
420
428
Advertising
78
129
158
114
75
206
154
Other Real Estate Owned (Income)
37
(23
)
(36
)
(8
)
(35
)
14
(72
)
Amortization of Intangible Assets
264
341
430
445
446
605
891
Other Expense
875
781
1,016
878
895
1,656
1,841
Total Noninterest Expense
8,984
8,428
10,765
9,487
9,501
17,412
18,530
Income Before Income Tax Expense
3,210
5,116
18,309
3,236
3,456
8,327
8,742
Income Tax Expense
560
920
5,343
564
699
1,480
1,827
Net Income
$
2,650
$
4,196
$
12,966
$
2,672
$
2,757
$
6,847
$
6,915
Three Months Ended
Six Months Ended
Per Common Share Data
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Dividends Per Common Share
$
0.25
$
0.25
$
0.25
$
0.25
$
0.25
$
0.50
$
0.50
Earnings Per Common Share - Basic
0.52
0.82
2.53
0.52
0.54
1.33
1.35
Earnings Per Common Share - Diluted
0.51
0.82
2.52
0.52
0.54
1.33
1.35
Weighted Average Common Shares Outstanding
- Basic
5,142,139
5,129,903
5,119,184
5,115,026
5,111,987
5,136,021
5,110,799
Weighted Average Common Shares Outstanding
- Diluted
5,152,657
5,142,286
5,135,997
5,126,546
5,116,134
5,151,188
5,118,396
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Common Shares Outstanding
5,141,911
5,142,901
5,118,713
5,120,678
5,111,678
Book Value Per Common Share
$
27.79
$
27.53
$
27.32
$
22.43
$
22.81
Tangible Book Value per Common Share
(1)
25.83
25.52
25.23
20.10
20.39
Stockholders’ Equity to Assets
9.2
%
9.6
%
9.6
%
8.2
%
8.1
%
Tangible Common Equity to Tangible Assets
(1)
8.6
9.0
8.9
7.4
7.3
Three Months Ended
Six Months Ended
Selected Financial Ratios (2)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Return on Average Assets
0.71
%
1.17
%
3.62
%
0.75
%
0.79
%
0.93
%
1.00
%
Return on Average Equity
7.58
12.03
44.99
9.03
9.38
9.80
11.98
Average Interest-Earning Assets to Average
Interest-Bearing Liabilities
135.69
137.07
138.67
139.65
142.28
136.36
144.88
Average Equity to Average Assets
9.36
9.72
8.04
8.32
8.38
9.54
8.33
Net Interest Rate Spread
2.44
2.67
2.56
2.54
2.78
2.55
2.95
Net Interest Rate Spread (FTE) (1)
2.46
2.68
2.57
2.55
2.79
2.56
2.96
Net Interest Margin
3.18
3.36
3.19
3.13
3.29
3.27
3.40
Net Interest Margin (FTE) (1)
3.19
3.37
3.21
3.14
3.30
3.28
3.41
Net Charge-Offs (Recoveries) to Average
Loans
0.02
(0.01
)
—
0.04
0.04
0.01
(0.12
)
Efficiency Ratio
73.89
62.40
38.93
72.26
70.96
67.84
66.69
Asset Quality Ratios
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Allowance for Credit Losses to Total
Loans
0.88
%
0.87
%
0.87
%
0.98
%
0.97
%
Allowance for Credit Losses to
Nonperforming Loans (3)
513.03
437.73
433.35
330.13
260.46
Delinquent and Nonaccrual Loans to Total
Loans (4)
0.53
0.63
0.62
0.73
0.68
Nonperforming Loans to Total Loans (3)
0.17
0.20
0.20
0.30
0.37
Nonperforming Assets to Total Assets
(5)
0.13
0.15
0.16
0.23
0.30
Capital Ratios (6)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Common Equity Tier 1 Capital (to Risk
Weighted Assets)
14.62
%
14.50
%
13.64
%
12.77
%
12.54
%
Tier 1 Capital (to Risk Weighted
Assets)
14.62
14.50
13.64
12.77
12.54
Total Capital (to Risk Weighted
Assets)
15.61
15.51
14.61
13.90
13.64
Tier 1 Leverage (to Adjusted Total
Assets)
9.98
10.28
10.19
9.37
9.26
(1)
Refer to Explanation of Use of Non-GAAP
Financial Measures in this Press Release for the calculation of the
measure and reconciliation to the most comparable GAAP measure.
(2)
Interim period ratios are calculated on an
annualized basis.
(3)
Nonperforming loans consist of all
nonaccrual loans and accruing loans that are 90 days or more past
due.
(4)
Delinquent loans consist of accruing loans
that are 30 days or more past due.
(5)
Nonperforming assets consist of
nonperforming loans and other real estate owned.
(6)
Capital ratios are for Community Bank
only.
Certain items previously reported may have been reclassified to
conform with the current reporting period’s format.
AVERAGE BALANCES AND
YIELDS
Three Months Ended
June 30, 2024
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
Average Balance
Interest and Dividends
Yield/ Cost(1)
Average Balance
Interest and Dividends
Yield/ Cost(1)
Average Balance
Interest and Dividends
Yield/ Cost(1)
Average Balance
Interest and Dividends
Yield/ Cost(1)
Average Balance
Interest and Dividends
Yield/ Cost(1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)
$
1,076,455
$
14,711
5.50
%
$
1,087,889
$
14,877
5.50
%
$
1,098,284
$
14,840
5.36
%
$
1,088,691
$
14,081
5.13
%
$
1,079,399
$
13,450
5.00
%
Debt Securities
Taxable
266,021
2,844
4.28
235,800
2,303
3.91
206,702
1,164
2.25
204,848
940
1.84
209,292
950
1.82
Tax-Exempt
—
—
—
—
—
—
4,833
42
3.48
6,013
52
3.46
6,180
53
3.43
Equity Securities
2,693
27
4.01
2,693
27
4.01
2,693
32
4.75
2,693
25
3.71
2,693
25
3.71
Interest-Earning Deposits at Banks
101,277
1,313
5.19
58,887
733
4.98
67,450
808
4.79
52,466
750
5.72
53,582
721
5.38
Other Interest-Earning Assets
3,154
85
10.84
3,235
85
10.57
3,387
64
7.50
3,292
69
8.32
2,783
39
5.62
Total Interest-Earning Assets
1,449,600
18,980
5.27
1,388,504
18,025
5.22
1,383,349
16,950
4.86
1,358,003
15,917
4.65
1,353,929
15,238
4.51
Noninterest-Earning Assets
53,564
54,910
38,464
52,885
52,812
Total Assets
$
1,503,164
$
1,443,414
$
1,421,813
$
1,410,888
$
1,406,741
Liabilities and Stockholders'
Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts
$
325,069
$
1,858
2.30
%
$
334,880
$
1,794
2.15
%
$
362,018
$
1,965
2.15
%
$
363,997
$
2,003
2.18
%
$
354,497
$
1,582
1.79
%
Money Market Accounts
214,690
1,646
3.08
203,867
1,514
2.99
205,060
1,441
2.79
187,012
1,141
2.42
194,565
1,033
2.13
Savings Accounts
184,944
52
0.11
191,444
59
0.12
200,737
57
0.11
212,909
54
0.10
225,175
53
0.09
Time Deposits
308,956
3,509
4.57
248,118
2,624
4.25
193,188
1,873
3.85
173,832
1,552
3.54
155,867
1,174
3.02
Total Interest-Bearing Deposits
1,033,659
7,065
2.75
978,309
5,991
2.46
961,003
5,336
2.20
937,750
4,750
2.01
930,104
3,842
1.66
Short-Term Borrowings
2
—
—
—
—
—
1,902
26
5.42
—
—
—
480
3
2.51
Other Borrowings
34,692
404
4.68
34,682
404
4.69
34,673
407
4.66
34,662
407
4.66
21,026
238
4.54
Total Interest-Bearing Liabilities
1,068,353
7,469
2.81
1,012,991
6,395
2.54
997,578
5,769
2.29
972,412
5,157
2.10
951,610
4,083
1.72
Noninterest-Bearing Demand Deposits
272,280
278,691
305,789
312,016
326,262
Total Funding and Cost of Funds
1,340,633
2.24
1,291,682
1.99
1,303,367
1.76
1,284,428
1.59
1,277,872
1.28
Other Liabilities
21,867
11,441
4,119
9,025
10,920
Total Liabilities
1,362,500
1,303,123
1,307,486
1,293,453
1,288,792
Stockholders' Equity
140,664
140,291
114,327
117,435
117,949
Total Liabilities and Stockholders'
Equity
$
1,503,164
$
1,443,414
$
1,421,813
$
1,410,888
$
1,406,741
Net Interest Income (FTE)
(Non-GAAP) (3)
$
11,511
$
11,630
$
11,181
$
10,760
$
11,155
Net Interest-Earning Assets (4)
381,247
375,513
385,771
385,591
402,319
Net Interest Rate Spread (FTE) (Non-GAAP)
(3) (5)
2.46
%
2.68
%
2.57
%
2.55
%
2.79
%
Net Interest Margin (GAAP) (6)
3.18
3.36
3.19
3.13
3.29
Net Interest Margin (FTE) (Non-GAAP)
(3)(6)
3.19
3.37
3.21
3.14
3.30
(1)
Annualized based on three months ended
results.
(2)
Net of the allowance for credit losses and
includes nonaccrual loans with a zero yield and Loans Held for Sale
if applicable.
(3)
Refer to Explanation and Use of Non-GAAP
Financial Measures in this Press Release for the calculation of the
measure and reconciliation to the most comparable GAAP measure.
(4)
Net interest-earning assets represent
total interest-earning assets less total interest-bearing
liabilities.
(5)
Net interest rate spread represents the
difference between the weighted average yield on interest-earning
assets and the weighted average cost of interest-bearing
liabilities.
(6)
Net interest margin represents annualized
net interest income divided by average total interest-earning
assets.
AVERAGE BALANCES AND
YIELDS
Six Months Ended
June 30, 2024
June 30, 2023
Average Balance
Interest and Dividends
Yield / Cost(1)
Average Balance
Interest and Dividends
Yield / Cost(1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)
$
1,082,172
$
29,586
5.50
%
$
1,060,092
$
25,840
4.92
%
Debt Securities
Taxable
250,912
5,148
4.10
211,213
1,914
1.81
Exempt From Federal Tax
—
—
—
6,225
105
3.37
Marketable Equity Securities
2,693
54
4.01
2,693
49
3.64
Interest-Earning Deposits at Banks
80,082
2,045
5.11
64,455
1,526
4.74
Other Interest-Earning Assets
3,195
171
10.76
2,709
79
5.88
Total Interest-Earning Assets
1,419,054
37,004
5.24
1,347,387
29,513
4.42
Noninterest-Earning Assets
54,141
50,159
Total Assets
$
1,473,195
$
1,397,546
Liabilities and Stockholders'
Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts
$
329,974
$
3,653
2.23
%
$
344,965
$
2,773
1.62
%
Savings Accounts
188,194
111
0.12
233,689
90
0.08
Money Market Accounts
209,279
3,159
3.04
203,952
1,972
1.95
Time Deposits
278,538
6,133
4.43
128,659
1,511
2.37
Total Interest-Bearing Deposits
1,005,985
13,056
2.61
911,265
6,346
1.40
Short-Term Borrowings
1
—
—
910
5
1.11
Other Borrowings
34,687
808
4.68
17,850
393
4.44
Total Interest-Bearing Liabilities
1,040,673
13,864
2.68
930,025
6,744
1.46
Noninterest-Bearing Demand Deposits
275,485
344,203
Total Funding and Cost of Funds
1,316,158
2.12
1,274,228
1.07
Other Liabilities
16,559
6,959
Total Liabilities
1,332,717
1,281,187
Stockholders' Equity
140,478
116,359
Total Liabilities and Stockholders'
Equity
$
1,473,195
$
1,397,546
Net Interest Income (FTE) (Non-GAAP)
(3)
23,140
22,769
Net Interest-Earning Assets (4)
378,381
417,362
Net Interest Rate Spread (FTE) (Non-GAAP)
(3)(5)
2.56
%
2.96
%
Net Interest Margin (FTE) (Non-GAAP)
(3)(6)
3.28
3.41
(1)
Annualized based on six months ended
results.
(2)
Net of the allowance for credit losses and
includes nonaccrual loans with a zero yield and Loans Held for Sale
if applicable.
(3)
Refer to Explanation and Use of Non-GAAP
Financial Measures in this Press Release for the calculation of the
measure and reconciliation to the most comparable GAAP measure.
(4)
Net interest-earning assets represent
total interest-earning assets less total interest-bearing
liabilities.
(5)
Net interest rate spread represents the
difference between the weighted average yield on interest-earning
assets and the weighted average cost of interest-bearing
liabilities.
(6)
Net interest margin represents annualized
net interest income divided by average total interest-earning
assets.
Explanation of Use of Non-GAAP Financial Measures
In addition to financial measures presented in accordance with
generally accepted accounting principles (“GAAP”), we use, and this
Press Release contains or references, certain Non-GAAP financial
measures. We believe these Non-GAAP financial measures provide
useful information in understanding our underlying results of
operations or financial position and our business and performance
trends as they facilitate comparisons with the performance of other
companies in the financial services industry. Non-GAAP adjusted
items impacting the Company's financial performance are identified
to assist investors in providing a complete understanding of
factors and trends affecting the Company’s business and in
analyzing the Company’s operating results on the same basis as that
applied by management. Although we believe that these Non-GAAP
financial measures enhance the understanding of our business and
performance, they should not be considered an alternative to GAAP
or considered to be more important than financial results
determined in accordance with GAAP, nor are they necessarily
comparable with similar Non-GAAP measures which may be presented by
other companies. Where Non-GAAP financial measures are used, the
comparable GAAP financial measure, as well as the reconciliation to
the comparable GAAP financial measure, can be found herein.
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
(Dollars in thousands, except share and
per share data) (Unaudited)
Total Assets (GAAP)
$
1,559,849
$
1,473,089
$
1,456,091
$
1,399,492
$
1,432,733
Goodwill and Intangible Assets, Net
(10,085
)
(10,349
)
(10,690
)
(11,909
)
(12,354
)
Tangible Assets (Non-GAAP) (Numerator)
$
1,549,764
$
1,462,740
$
1,445,401
$
1,387,583
$
1,420,379
Stockholders' Equity (GAAP)
$
142,882
$
141,590
$
139,834
$
114,846
$
116,589
Goodwill and Intangible Assets, Net
(10,085
)
(10,349
)
(10,690
)
(11,909
)
(12,354
)
Tangible Common Equity or Tangible Book
Value (Non-GAAP) (Denominator)
$
132,797
$
131,241
$
129,144
$
102,937
$
104,235
Stockholders’ Equity to Assets (GAAP)
9.2
%
9.6
%
9.6
%
8.2
%
8.1
%
Tangible Common Equity to Tangible Assets
(Non-GAAP)
8.6
%
9.0
%
8.9
%
7.4
%
7.3
%
Common Shares Outstanding
(Denominator)
5,141,911
5,142,901
5,118,713
5,120,678
5,111,678
Book Value per Common Share (GAAP)
$
27.79
$
27.53
$
27.32
$
22.43
$
22.81
Tangible Book Value per Common Share
(Non-GAAP)
$
25.83
$
25.52
$
25.23
$
20.10
$
20.39
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
(Dollars in thousands) (Unaudited)
Net Income (GAAP)
$
2,650
$
4,196
$
12,966
$
2,672
$
2,757
$
6,847
$
6,915
Amortization of Intangible Assets, Net
264
341
430
445
446
605
891
Adjusted Net Income (Non-GAAP)
(Numerator)
$
2,914
$
4,537
$
13,396
$
3,117
$
3,203
$
7,452
$
7,806
Annualization Factor
4.02
4.02
3.97
3.97
4.01
2.01
2.02
Average Stockholders' Equity (GAAP)
$
140,664
$
140,291
$
114,327
$
117,435
$
117,949
$
140,478
$
116,359
Average Goodwill and Intangible Assets,
Net
(10,242
)
(10,553
)
(11,829
)
(12,185
)
(12,626
)
(10,398
)
(12,852
)
Average Tangible Common Equity (Non-GAAP)
(Denominator)
$
130,422
$
129,738
$
102,498
$
105,250
$
105,323
$
130,080
$
103,507
Return on Average Equity (GAAP)
7.58
%
12.03
%
44.99
%
9.03
%
9.38
%
9.80
%
11.98
%
Return on Average Tangible Common Equity
(Non-GAAP)
8.99
%
14.07
%
51.85
%
11.75
%
12.20
%
11.52
%
15.21
%
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)
$
18,939
$
17,986
$
16,905
$
15,874
$
15,203
$
36,926
$
29,448
Adjustment to FTE Basis
41
39
45
43
35
78
65
Interest Income (FTE) (Non-GAAP)
18,980
18,025
16,950
15,917
15,238
37,004
29,513
Interest Expense (GAAP)
7,469
6,395
5,769
5,157
4,083
13,864
6,744
Net Interest Income (FTE) (Non-GAAP)
$
11,511
$
11,630
$
11,181
$
10,760
$
11,155
$
23,140
$
22,769
Net Interest Rate Spread (GAAP)
2.44
%
2.67
%
2.56
%
2.54
%
2.78
%
2.55
%
2.95
%
Adjustment to FTE Basis
0.02
0.01
0.01
0.01
0.01
0.01
0.01
Net Interest Rate Spread (FTE)
(Non-GAAP)
2.46
%
2.68
%
2.57
%
2.55
%
2.79
%
2.56
%
2.96
%
Net Interest Margin (GAAP)
3.18
%
3.36
%
3.19
%
3.13
%
3.29
%
3.27
%
3.40
%
Adjustment to FTE Basis
0.01
0.01
0.02
0.01
0.01
0.01
0.01
Net Interest Margin (FTE) (Non-GAAP)
3.19
%
3.37
%
3.21
%
3.14
%
3.30
%
3.28
%
3.41
%
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
(Dollars in thousands) (Unaudited)
Income Before Income Tax Expense
(GAAP)
$
3,210
$
5,116
$
18,309
$
3,236
$
3,456
$
8,327
$
8,742
Net (Recovery) Provision for Credit
Losses
(36
)
(37
)
(1,420
)
406
432
(73
)
512
Adjustments
Net Loss on Securities
31
166
9,830
37
100
197
332
Gain on Sale of Subsidiary
—
—
(24,578
)
—
—
—
—
Net Gain on Disposal of Premises and
Equipment
—
(274
)
—
—
—
(274
)
(11
)
Net Gain on Bank-Owned Life Insurance
Claims
—
(915
)
—
—
(1
)
$
(915
)
$
(303
)
Adjusted PPNR (Non-GAAP) (Numerator)
$
3,205
$
4,056
$
2,141
$
3,679
$
3,987
$
7,262
$
9,272
Annualization Factor
4.02
4.02
3.97
3.97
4.01
2.01
2.02
Average Assets (Denominator)
$
1,503,164
$
1,443,414
$
1,421,813
$
1,410,888
$
1,406,741
$
1,473,195
$
1,397,546
Adjusted PPNR Return on Average Assets
(Non-GAAP)
0.86
%
1.13
%
0.60
%
1.04
%
1.14
%
0.99
%
1.34
%
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
(Dollars in thousands, except share and
per share data) (Unaudited)
Net Income (GAAP)
$
2,650
$
4,196
$
12,966
$
2,672
$
2,757
$
6,847
$
6,915
Adjustments
Net Loss on Securities
31
166
9,830
37
100
197
332
Gain on Sale of Subsidiary
—
—
(24,578
)
—
—
—
—
Net Gain on Disposal of Premises and
Equipment
—
(274
)
—
—
—
(274
)
(11
)
Net Gain on Bank-Owned Life Insurance
Claims
—
(915
)
—
—
(1
)
(915
)
(303
)
Tax effect
(7
)
23
4,843
(8
)
(21
)
16
(67
)
Adjusted Net Income (Non-GAAP)
$
2,674
$
3,196
$
3,061
$
2,701
$
2,835
$
5,871
$
6,866
Weighted-Average Diluted Common Shares and
Common Stock Equivalents Outstanding
5,152,657
5,142,286
5,135,997
5,126,546
5,116,134
5,151,188
5,118,396
Earnings per Common Share - Diluted
(GAAP)
$
0.51
$
0.82
$
2.52
$
0.52
$
0.54
$
1.33
$
1.35
Adjusted Earnings per Common Share -
Diluted (Non-GAAP)
$
0.52
$
0.62
$
0.60
$
0.53
$
0.55
$
1.14
$
1.34
Net Income (GAAP) (Numerator)
$
2,650
$
4,196
$
12,966
$
2,672
$
2,757
$
6,847
$
6,915
Annualization Factor
4.02
4.02
3.97
3.97
4.01
2.01
2.02
Average Assets (Denominator)
1,503,164
1,443,414
1,421,813
1,410,888
1,406,741
1,473,195
1,397,546
Return on Average Assets (GAAP)
0.71
%
1.17
%
3.62
%
0.75
%
0.79
%
0.93
%
1.00
%
Adjusted Net Income (Non-GAAP)
(Numerator)
$
2,674
$
3,196
$
3,061
$
2,701
$
2,835
$
5,871
$
6,866
Annualization Factor
4.02
4.02
3.97
3.97
4.01
2.01
2.02
Average Assets (Denominator)
1,503,164
1,443,414
1,421,813
1,410,888
1,406,741
1,473,195
1,397,546
Adjusted Return on Average Assets
(Non-GAAP)
0.72
%
0.89
%
0.85
%
0.76
%
0.81
%
0.80
%
0.99
%
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
(Dollars in thousands) (Unaudited)
Net Income (GAAP) (Numerator)
$
2,650
$
4,196
$
12,966
$
2,672
$
2,757
$
6,847
$
6,915
Annualization Factor
4.02
4.02
3.97
3.97
4.01
2.01
2.02
Average Equity (GAAP) (Denominator)
140,664
140,291
114,327
117,435
117,949
140,478
116,359
Return on Average Equity (GAAP)
7.58
%
12.03
%
44.99
%
9.03
%
9.38
%
9.80
%
11.98
%
Adjusted Net Income (Non-GAAP)
(Numerator)
$
2,674
$
3,196
$
3,061
$
2,701
$
2,835
$
5,871
$
6,866
Annualization Factor
4.02
4.02
3.97
3.97
4.01
2.01
2.02
Average Equity (GAAP) (Denominator)
140,664
140,291
114,327
117,435
117,949
140,478
116,359
Adjusted Return on Average Equity
(Non-GAAP)
7.65
%
9.16
%
10.62
%
9.12
%
9.64
%
8.40
%
11.90
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240724356648/en/
John H. Montgomery President and Chief Executive Officer Phone:
(724) 223-8317
CB Financial Services (NASDAQ:CBFV)
過去 株価チャート
から 11 2024 まで 12 2024
CB Financial Services (NASDAQ:CBFV)
過去 株価チャート
から 12 2023 まで 12 2024
