CB Financial Services, Inc. Announces Second Quarter 2025 Financial Results and Declares Quarterly Cash Dividend Increase of 4%

WASHINGTON, Pa.--(BUSINESS WIRE)-- 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 2025 financial results.

	Three Months Ended											Six Months Ended
	6/30/25		3/31/25		12/31/24		9/30/24		6/30/24			6/30/25		6/30/24
(Dollars in thousands, except per share data) (Unaudited)
Net Income (GAAP)	$	3,949	$	1,909	$	2,529	$	3,219	$	2,650		$	5,858	$	6,847
Net Income Adjustments		—		808		(562)		(293)		24			808		(976)
Adjusted Net Income (Non-GAAP) (1)	$	3,949	$	2,717	$	1,967	$	2,926	$	2,674		$	6,666	$	5,871
Earnings per Common Share - Diluted (GAAP)	$	0.74	$	0.35	$	0.46	$	0.60	$	0.51		$	1.09	$	1.33
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)	$	0.74	$	0.50	$	0.35	$	0.55	$	0.52		$	1.24	$	1.14

Income Before Income Tax Expense (GAAP)	$	4,715	$	2,336	$	3,051	$	3,966	$	3,210		$	7,051	$	8,327
Net Provision (Recovery) for Credit Losses		8		(40)		683		(41)		(36)			(32)		(73)
Pre-Provision Net Revenue (“PPNR”)	$	4,723	$	2,296	$	3,734	$	3,925	$	3,174		$	7,019	$	8,254
Net Income Adjustments	$	—	$	1,023	$	(711)	$	(383)	$	31		$	20	$	(992)
Adjusted PPNR (Non-GAAP) (1)	$	4,723	$	3,319	$	3,023	$	3,542	$	3,205		$	7,039	$	7,262

(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.

2025 Second Quarter Financial Highlights

• Total assets were $1.52 billion at June 30, 2025, an increase of $34.5 million from March 31, 2025. Growth has been largely driven through strong commercial real estate and commercial and industrial loan production funded through a rise in core deposit accounts. The Bank also continues to focus efforts on repositioning the balance sheet to maximize earnings while maintaining its historic risk profile. These strategic movements include:
  • Effectively managing cash and liquidity.
  • Redeploying repayments of indirect automobile and residential mortgage loans into higher-yielding commercial loan products. Commercial loans totaled 59% of the Bank’s loan portfolio at June 30, 2025 compared to 53% at June 30, 2024.
  • Effecting changes in the Bank’s deposit mix by focusing on growth in lower cost core deposit relationships and reducing reliance on time deposits.
• Net interest margin (“NIM”) improved to 3.54% for the three months ended June 30, 2025 compared to 3.27% for the three months ended March 31, 2025. Main factors impacting the improved NIM included:
  • A reduction in the cost of funds to 1.89% from 2.03% resulting from the favorable change in the Bank’s deposit mix coupled with disciplined deposit pricing and the recent reduction in the federal funds rate.
  • An increase in the yield on earning assets to 5.31% from 5.17% as the positive impact of the balance sheet repositioning strategies offset the effect of recent rate cuts on asset repricing.
• Noninterest expenses decreased $1.1 million to $8.7 million for the three months ended June 30, 2025 compared to $9.8 million for the three months ended March 31, 2025. During the quarter ended March 31, 2025, the Bank recognized $1.0 million in one-time expenses related to the previously announced reduction in force. Excluding these one-time charges, noninterest expense decreased $51,000 as ongoing savings from the reduction in force and other operational changes involving property management, recruitment and other activities are realized and expenses are actively managed and controlled.
• Asset quality remains strong as nonperforming loans to total loans was 0.16% at June 30, 2025.
• Book value per share and tangible book value per share (Non-GAAP) was $29.84 and $27.88, respectively at June 30, 2025. The improvements since year-end resulted from increased equity due to current period net income and a decrease in accumulated other comprehensive losses, partially offset by treasury shares repurchased under the Company’s stock repurchase program and the payment of dividends.
• The Bank remains well-capitalized and is positioned for future growth.

Management Commentary

President and CEO John H. Montgomery commented, “The first half of the year demonstrated solid loan growth and continued net interest margin improvement, with our strong second quarter operating results further reinforcing this positive momentum. Net interest margin expansion during the quarter was driven primarily by a reduction in our cost of funds, reflecting a more favorable deposit mix, disciplined deposit pricing and the recent federal funds rate cuts. Additionally, the yield on earning assets increased during the quarter, supported by the positive impact of our balance sheet repositioning strategies, which effectively mitigated the effects of recent rate reductions on asset repricing. Together, these factors demonstrate the effectiveness of our proactive management approach and position us to sustain strong margin performance moving forward.

In navigating a fluctuating economic environment, we remain disciplined by maintaining a conservative balance sheet and actively managing risk. Since year-end, our loan portfolio grew by $18.2 million, or 1.7%, driven by increases in commercial real estate and commercial and industrial loans, partially offset by declines in construction, consumer and residential real estate loans. We were encouraged by loan growth during the quarter and anticipate steady loan demand throughout the year. Asset quality remains strong, with nonperforming loans representing just 0.16% of total loans and allowance for credit losses to nonperforming assets of 505.0% at quarter-end, reflecting our commitment to prudent credit management.

In the second quarter we advanced the implementation of our Specialty Treasury Payments & Services program—an integral part of our long-term strategic plan to drive sustainable revenue growth and expand our core deposit base. All focus remains on building out the treasury products, personnel and technology to be fully operational by late 2025. While related expenses will modestly impact operating costs in the near term, we expect this to be a high-return investment in the strength and scalability of our franchise.

We continue to prioritize strengthening core banking relationships and strategically reducing our reliance on time deposit-only accounts, contributing to a positive shift in our deposit mix. Since year-end, total time deposits declined by $16.7 million, driven by a $56.7 million reduction in organic time deposits, partially offset by a $40.0 million increase in brokered CDs. As we begin to scale our treasury deposit initiatives later this year, we anticipate the opportunity to reduce or fully replace brokered CDs, further aligning our funding mix with our long-term strategic objectives.

As we move into the second half of the year, we maintain a positive outlook on the effectiveness of our strategic initiatives and believe we are well-positioned to achieve meaningful revenue growth by year-end.”

Dividend Declaration

The Company’s Board of Directors has approved a 4.0% increase in the regular quarterly dividend by declaring a $0.26 quarterly cash dividend per outstanding share of common stock, payable on or about August 29, 2025, to stockholders of record as of the close of business on August 15, 2025.

2025 Second Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income increased $1.1 million, or 9.3%, to $12.5 million for the three months ended June 30, 2025 compared to $11.5 million for the three months ended June 30, 2024.

• Net Interest Margin (NIM) (GAAP) increased to 3.54% for the three months ended June 30, 2025 compared to 3.18% for the three months ended June 30, 2024. Fully tax equivalent (FTE) NIM (Non-GAAP) increased 36 basis points (“bps”) to 3.55% for the three months ended June 30, 2025 compared to 3.19% for the three months ended June 30, 2024.
• Interest and dividend income decreased $179,000, or 0.9%, to $18.8 million for the three months ended June 30, 2025 compared to $18.9 million for the three months ended June 30, 2024.
  • Interest income on loans increased $822,000, or 5.6%, to $15.5 million for the three months ended June 30, 2025 compared to $14.7 million for the three months ended June 30, 2024. The average yield on loans increased 18 bps to 5.68% from 5.50% despite a 100bp reduction in the federal funds rate since September 2024. While this led to the downward repricing of variable and adjustable rate loans, the impact was negated 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. The increase in the average yield caused a $489,000 increase in interest income on loans. Additionally, the average balance of loans increased $22.2 million to $1.10 billion from $1.08 billion, causing a $349,000 increase in interest income on loans.
  • Interest income on taxable investment securities increased $16,000, or 0.6%, to $2.9 million for the three months ended June 30, 2025 compared to $2.8 million for the three months ended June 30, 2024 driven by a $18.5 million increase in average balances, partially offset by a 26 bp decrease in average yield. The increase in volume was driven by a $22.9 million increase in the average balance of collateralized loan obligation (“CLO”) securities as the Bank executed a leverage strategy during 2024 to purchase these assets funded with cash reserves and brokered certificates of deposits. The decrease in yield resulted from the reductions in the federal funds rate since September 2024.
  • Interest income on interest-earning deposits at other banks decreased $982,000 to $331,000 for the three months ended June 30, 2025 compared to $1.3 million for the three months ended June 30, 2024 driven by a 125 bp decrease in the average yield and a $67.7 million decrease in average balances. The decrease in the yield was directly related to the Federal Reserve’s reductions in the federal funds rate.
• Interest expense decreased $1.2 million, or 16.7%, to $6.2 million for the three months ended June 30, 2025 compared to $7.5 million for the three months ended June 30, 2024.
  • Interest expense on deposits decreased $1.3 million, or 19.0%, to $5.7 million for the three months ended June 30, 2025 compared to $7.1 million for the three months ended June 30, 2024. The cost of interest-bearing deposits declined 47 bps to 2.28% for the three months ended June 30, 2025 from 2.75% for the three months ended June 30, 2024 due to the change in the deposit mix and the recent Federal Reserve federal funds rate decreases. The decrease in the cost of interest-bearing deposits accounted for a $1.2 million reduction in interest expense. Average interest-bearing deposit balances decreased $27.2 million, or 2.6%, to $1.01 billion as of June 30, 2025 compared to $1.03 billion as of June 30, 2024, primarily as the Bank strategically reduced brokered deposits and time deposit only relationships. The decrease in average balances accounted for a $161,000 reduction in interest expense.

Provision for Credit Losses

A provision for credit losses of $8,000 was recorded for the three months ended June 30, 2025. The provision for credit losses - loans was a $136,000 recovery and was primarily due to a reduction of reserve required for individually assessed loans and changes in loan concentrations, partially offset by additional reserve required for overall loan growth and a change in qualitative factors relating to economic conditions. The provision for credit losses - unfunded commitments was $144,000 and was due to an increase in unfunded commitments and an increase in funding rates. This compared to a net recovery of $36,000 recorded for the three months ended June 30, 2024 as the provision for credit losses - loans was $12,000 and was primarily due to an increase in the reserve required for individually assessed loans, partially offset by 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.

Noninterest Income

Noninterest income increased $243,000, or 35.3%, to $931,000 for the three months ended June 30, 2025, compared to $688,000 for the three months ended June 30, 2024. This resulted primarily from a $205,000 increase in service fees primarily related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts.

Noninterest Expense

Noninterest expense decreased $236,000, or 2.6%, to $8.7 million for the three months ended June 30, 2025 compared to $9.0 million for the three months ended June 30, 2024. Occupancy expense decreased $324,000 due to environmental remediation costs related to a construction project on one of the Bank’s office locations recognized only in 2024 and certain property management cost savings initiatives implemented in 2025. Intangible amortization decreased $264,000 as the Bank’s core deposit intangibles were fully amortized in 2024. Data processing expense decreased $250,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform during mid-2024. Pennsylvania shares tax expense decreased $154,000 due to $217,000 of refunds received on amended returns filed for prior years. Legal and professional fees decreased $91,000 primarily due to timing differences related to internal and external audit and tax services. These decreases were partially offset as salaries and benefits increased $663,000, or 15.0%, to $5.1 million primarily due to merit increases, revenue producing staff additions and higher insurance benefit costs, partially offset by savings realized due to the reduction in force implemented earlier this year. Equipment expense increased $74,000 due to higher depreciation expense associated with interactive teller machines, security system upgrades and other equipment placed into service in 2024.

Statement of Financial Condition Review

Assets

Total assets increased $36.4 million, or 2.5%, to $1.52 billion at June 30, 2025, compared to $1.48 billion at December 31, 2024.

• Cash and due from banks increased $14.9 million, or 30.1%, to $64.5 million at June 30, 2025, compared to $49.6 million at December 31, 2024.
• Securities increased $5.0 million, or 1.9%, to $267.2 million at June 30, 2025, compared to $262.2 million at December 31, 2024. The securities balance was primarily impacted by security purchases and an increase in the market value of the portfolio, partially offset by principal repayments on amortizing securities and the sale of equity securities.

Loans and Credit Quality

• Total loans increased $18.2 million, or 1.7%, to $1.11 billion compared to $1.09 billion, and included increases in commercial real estate and commercial and industrial loans of $27.7 million and $26.2 million, respectively, partially offset by decreases in construction, consumer and residential real estate loans of $14.0 million, $13.1 million and $8.7 million, respectively. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to 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. Excluding the $8.3 million decrease in indirect automobile loans, total loans increased $26.4 million, or 2.4%. Loan production totaled $97.0 million while $51.5 million of loans were paid off since December 31, 2024.
• The allowance for credit losses (ACL) was $9.7 million at June 30, 2025 and $9.8 million at December 31, 2024. As a result, the ACL to total loans was 0.88% at June 30, 2025 and 0.90% at December 31, 2024. During the current year, the Company recorded a net recovery for credit losses of $32,000. The allowance for credit losses to nonperforming assets was 505.0% at June 30, 2025 and 548.1% at December 31, 2024.
• Net recoveries for the three months ended June 30, 2025 were $39,000, or 0.01% of average loans on an annualized basis. 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 six months ended June 30, 2025 were $15,000. Net charge-offs for the six months ended June 30, 2024 were $50,000.
• Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $1.8 million at June 30, 2025 and December 31, 2024. Nonperforming loans to total loans ratio was 0.16% at June 30, 2025 and December 31, 2024.

Liabilities

Total liabilities increased $35.4 million, or 2.7%, to $1.37 billion at June 30, 2025 compared to $1.33 billion at December 31, 2024.

Deposits

• Total deposits increased $25.9 million, or 2.0%, to $1.31 billion as of June 30, 2025 compared to $1.28 billion at December 31, 2024. Interest-bearing demand, non interest-bearing demand and savings deposits increased $36.7 million, $10.8 million and $1.5 million, respectively while time deposits decreased $16.7 million and money market deposits decreased $6.3 million, respectively. This favorable change in the deposit mix was the result of an increased focus on building core banking relationships while strategically reducing time deposit-only relationships. Brokered time deposits totaled $79.0 million as of June 30, 2025 and $39.0 million as of December 31, 2024, all of which mature within three months and were utilized to fund the purchase of floating rate CLO securities. At June 30, 2025, FDIC insured deposits totaled approximately 61.0% of total deposits while an additional 14.8% of total deposits were collateralized with investment securities.

Accrued Interest Payable and Other Liabilities

• Accrued interest payable and other liabilities increased $9.5 million, or 59.6%, to $25.5 million at June 30, 2025, compared to $16.0 million at December 31, 2024 primarily due to $9.0 million of syndicated national credits not yet settled.

Stockholders’ Equity

Stockholders’ equity increased $984,000, or 0.7%, to $148.4 million at June 30, 2025, compared to $147.4 million at December 31, 2024. The key factors positively impacting stockholders’ equity was $5.9 million of net income for the current year, a $2.9 million decrease in accumulated other comprehensive loss and $1.1 million of shares issued as a result of stock option exercises, partially offset by $6.8 million of treasury shares purchased under the stock repurchase program and the payment of $2.5 million in dividends since December 31, 2024.

Book value per share

Book value per common share was $29.84 at June 30, 2025 compared to $28.71 at December 31, 2024, an increase of $1.13.

Tangible book value per common share (Non-GAAP) was $27.88 at June 30, 2025, compared to $26.82 at December 31, 2024, an increase of $1.06.

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	6/30/25				3/31/25				12/31/24				9/30/24				6/30/24
Assets
Cash and Due From Banks	$	64,506			$	61,274			$	49,572			$	147,325			$	142,600
Securities		267,171				258,699				262,153				270,881				268,769
Loans Held for Sale		512				230				900				428				632
Loans
Real Estate:
Residential		329,324				334,744				337,990				338,926				342,689
Commercial		513,197				497,316				485,513				464,354				458,724
Construction		40,680				54,597				54,705				43,515				44,038
Commercial and Industrial		138,221				107,419				112,047				108,554				112,395
Consumer		57,376				61,854				70,508				80,004				90,357
Other		32,026				32,564				31,863				30,402				30,491
Total Loans		1,110,824				1,088,494				1,092,626				1,065,755				1,078,694
Allowance for Credit Losses		(9,722	)			(9,819	)			(9,805	)			(9,479	)			(9,527	)
Loans, Net		1,101,102				1,078,675				1,082,821				1,056,276				1,069,167
Premises and Equipment, Net		20,223				20,392				20,708				20,838				20,326
Bank-Owned Life Insurance		24,506				24,358				24,209				24,057				23,910
Goodwill		9,732				9,732				9,732				9,732				9,732
Intangible Assets, Net		—				—				—				88				353
Accrued Interest Receivable and Other Assets		30,232				30,096				31,469				32,116				24,770
Total Assets	$	1,517,984			$	1,483,456			$	1,481,564			$	1,561,741			$	1,560,259
Liabilities
Deposits
Noninterest-Bearing Demand Accounts	$	278,685			$	267,392			$	267,896			$	267,022			$	269,964
Interest-Bearing Demand Accounts		353,448				341,212				316,764				326,505				324,688
Money Market Accounts		225,141				228,005				231,458				220,789				229,998
Savings Accounts		172,021				176,722				170,530				172,354				179,081
Time Deposits		280,137				267,766				296,869				367,150				346,037
Total Deposits		1,309,432				1,281,097				1,283,517				1,353,820				1,349,768
Other Borrowings		34,738				34,728				34,718				34,708				34,698
Accrued Interest Payable and Other Liabilities		25,452				19,342				15,951				24,073				32,911
Total Liabilities		1,369,622				1,335,167				1,334,186				1,412,601				1,417,377
Stockholders’ Equity		148,362				148,289				147,378				149,140				142,882
Total Liabilities and Stockholders’ Equity	$	1,517,984			$	1,483,456			$	1,481,564			$	1,561,741			$	1,560,259

(Dollars in thousands, except share and per share data) (Unaudited)
	Three Months Ended														Six Months Ended
Selected Operating Data	6/30/25			3/31/25			12/31/24		9/30/24			6/30/24			6/30/25			6/30/24
Interest and Dividend Income:
Loans, Including Fees	$	15,492		$	14,528		$	14,930	$	14,945		$	14,670		$	30,020		$	29,508
Securities:
Taxable		2,860			2,777			3,096		3,289			2,844			5,637			5,148
Dividends		9			28			27		28			27			37			54
Other Interest and Dividend Income		399			514			1,378		1,511			1,398			912			2,216
Total Interest and Dividend Income		18,760			17,847			19,431		19,773			18,939			36,606			36,926
Interest Expense:
Deposits		5,721			6,111			7,492		7,892			7,065			11,833			13,056
Short-Term Borrowings		108			23			—		—			—			131			—
Other Borrowings		391			402			407		407			404			792			808
Total Interest Expense		6,220			6,536			7,899		8,299			7,469			12,756			13,864
Net Interest and Dividend Income		12,540			11,311			11,532		11,474			11,470			23,850			23,062
(Recovery) Provision for Credit Losses - Loans		(136	)		68			483		25			12			(68	)		(130	)
Provision (Recovery) for Credit Losses - Unfunded Commitments		144			(108	)		200		(66	)		(48	)		36			57
Net Interest and Dividend Income After Net Provision (Recovery) for Credit Losses		12,532			11,351			10,849		11,515			11,506			23,882			23,135
Noninterest Income:
Service Fees		559			462			460		451			354			1,021			769
Insurance Commissions		1			1			1		1			1			2			3
Other Commissions		66			63			63		104			22			129			84
Net Gain on Sales of Loans		26			22			3		18			9			49			30
Net (Loss) Gain on Securities		—			(69	)		3		245			(31	)		(69	)		(197	)
Net Gain on Purchased Tax Credits		4			4			12		12			12			7			25
Gain on Sale of Subsidiary		—			—			—		138			—			—			—
Net Gain on Disposal of Premises and Equipment		—			—			—		—			—			—			274
Income from Bank-Owned Life Insurance		148			149			152		147			147			297			295
Net Gain on Bank-Owned Life Insurance Claims		—			—			—		—			—			—			915
Other Income		127			155			961		117			174			282			406
Total Noninterest Income		931			787			1,655		1,233			688			1,718			2,604
Noninterest Expense:
Salaries and Employee Benefits		5,088			6,036			5,258		4,561			4,425			11,124			9,001
Occupancy		616			750			652		755			940			1,366			1,689
Equipment		372			330			313		280			298			702			562
Data Processing		761			797			832		772			1,011			1,558			1,703
Federal Deposit Insurance Corporation Assessment		203			176			172		177			161			379			290
Pennsylvania Shares Tax		143			257			301		265			297			400			595
Contracted Services		382			310			522		431			390			692			671
Legal and Professional Fees		117			262			268		297			208			378			420
Advertising		124			119			137		141			78			242			206
Other Real Estate Owned		1			—			34		2			37			2			14
Amortization of Intangible Assets		—			—			88		264			264			—			605
Other Expense		941			765			876		837			875			1,706			1,656
Total Noninterest Expense		8,748			9,802			9,453		8,782			8,984			18,549			17,412
Income Before Income Tax Expense		4,715			2,336			3,051		3,966			3,210			7,051			8,327
Income Tax Expense		766			427			522		747			560			1,193			1,480
Net Income	$	3,949		$	1,909		$	2,529	$	3,219		$	2,650		$	5,858		$	6,847

	Three Months Ended										Six Months Ended
Per Common Share Data	6/30/25		3/31/25		12/31/24		9/30/24		6/30/24		6/30/25		6/30/24
Dividends Per Common Share	$	0.25	$	0.25	$	0.25	$	0.25	$	0.25	$	0.50	$	0.50
Earnings Per Common Share - Basic		0.79		0.37		0.49		0.63		0.52		1.15		1.33
Earnings Per Common Share - Diluted		0.74		0.35		0.46		0.60		0.51		1.09		1.33
Weighted Average Common Shares Outstanding - Basic		5,022,813		5,125,577		5,126,782		5,137,586		5,142,139		5,073,911		5,136,021
Weighted Average Common Shares Outstanding - Diluted		5,332,026		5,471,006		5,544,829		5,346,750		5,152,657		5,387,924		5,151,188

	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24
Common Shares Outstanding		4,972,300			5,099,069			5,132,654			5,129,921			5,141,911
Book Value Per Common Share	$	29.84		$	29.08		$	28.71		$	29.07		$	27.79
Tangible Book Value per Common Share (1)		27.88			27.17			26.82			27.16			25.83
Stockholders’ Equity to Assets		9.8	%		10.0	%		9.9	%		9.5	%		9.2	%
Tangible Common Equity to Tangible Assets (1)		9.2			9.4			9.4			9.0			8.6

	Three Months Ended										Six Months Ended
Selected Financial Ratios (2)	6/30/25		3/31/25		12/31/24		9/30/24		6/30/24		6/30/25		6/30/24
Return on Average Assets	1.06	%	0.53	%	0.65	%	0.84	%	0.71	%	0.80	%	0.93	%
Return on Average Equity	10.76		5.24		6.80		8.80		7.58		8.01		9.80
Average Interest-Earning Assets to Average Interest-Bearing Liabilities	135.33		134.70		133.33		133.26		135.69		135.02		136.36
Average Equity to Average Assets	9.88		10.07		9.63		9.54		9.36		9.97		9.54
Net Interest Rate Spread	2.91		2.61		2.41		2.36		2.44		2.76		2.55
Net Interest Rate Spread (FTE) (1)	2.93		2.63		2.42		2.38		2.46		2.78		2.56
Net Interest Margin	3.54		3.27		3.12		3.11		3.18		3.40		3.27
Net Interest Margin (FTE) (1)	3.55		3.28		3.13		3.12		3.19		3.42		3.28
Net Charge-Offs (Recoveries) to Average Loans	(0.01	)	0.02		0.06		0.03		0.02		—		0.01
Efficiency Ratio	64.94		81.02		71.68		69.11		73.89		72.55		67.84

Asset Quality Ratios	6/30/25		3/31/25		12/31/24		9/30/24		6/30/24
Allowance for Credit Losses to Total Loans	0.88	%	0.90	%	0.90	%	0.89	%	0.88	%
Allowance for Credit Losses to Nonperforming Loans (3)	550.20		414.48		548.07		463.07		513.03
Delinquent and Nonaccrual Loans to Total Loans (4)	0.49		0.54		0.72		0.98		0.53
Nonperforming Loans to Total Loans (3)	0.16		0.22		0.16		0.19		0.17
Nonperforming Assets to Total Assets (5)	0.13		0.16		0.12		0.14		0.13

Capital Ratios (6)	6/30/25		3/31/25		12/31/24		9/30/24		6/30/24
Common Equity Tier 1 Capital (to Risk Weighted Assets)	15.28	%	14.94	%	14.78	%	14.79	%	14.62	%
Tier 1 Capital (to Risk Weighted Assets)	15.28		14.94		14.78		14.79		14.62
Total Capital (to Risk Weighted Assets)	16.29		15.95		15.79		15.76		15.61
Tier 1 Leverage (to Adjusted Total Assets)	10.49		10.36		9.98		9.96		9.98

(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, 2025							March 31, 2025							December 31, 2024							September 30, 2024							June 30, 2024
	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)	$	1,098,698	$	15,549	5.68	%		$	1,075,083	$	14,584	5.50	%		$	1,066,304	$	14,975	5.59	%		$	1,063,946	$	14,987	5.60	%		$	1,076,455	$	14,711	5.50	%
Debt Securities
Taxable		284,499		2,860	4.02				278,362		2,777	3.99				284,002		3,096	4.36				288,208		3,289	4.56				266,021		2,844	4.28
Equity Securities		1,000		9	3.60				2,674		28	4.19				2,693		27	4.01				2,693		28	4.16				2,693		27	4.01
Interest-Earning Deposits at Banks		33,564		331	3.94				45,056		459	4.07				114,245		1,338	4.68				111,131		1,448	5.21				101,277		1,313	5.19
Other Interest-Earning Assets		3,767		68	7.24				3,196		55	6.98				3,070		40	5.18				3,108		63	8.06				3,154		85	10.84
Total Interest-Earning Assets		1,421,528		18,817	5.31				1,404,371		17,903	5.17				1,470,314		19,476	5.27				1,469,086		19,815	5.37				1,449,600		18,980	5.27
Noninterest-Earning Assets		67,513							63,324							65,786							57,602							53,564
Total Assets	$	1,489,041						$	1,467,695						$	1,536,100						$	1,526,688						$	1,503,164
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts	$	334,752	$	1,677	2.01	%		$	317,799	$	1,526	1.95	%		$	328,129	$	1,838	2.23	%		$	316,301	$	1,923	2.42	%		$	325,069	$	1,858	2.30	%
Money Market Accounts		238,195		1,747	2.94				230,634		1,726	3.04				227,606		1,821	3.18				217,148		1,726	3.16				214,690		1,646	3.08
Savings Accounts		174,055		42	0.10				172,322		41	0.10				170,612		45	0.10				175,753		46	0.10				184,944		52	0.11
Time Deposits		259,506		2,255	3.49				285,093		2,818	4.01				341,686		3,788	4.41				358,498		4,197	4.66				308,956		3,509	4.57
Total Interest-Bearing Deposits		1,006,508		5,721	2.28				1,005,848		6,111	2.46				1,068,033		7,492	2.79				1,067,700		7,892	2.94				1,033,659		7,065	2.75
Short-Term Borrowings		9,143		108	4.74				1,985		23	4.70				—		—	—				—		—	—				2		—	—
Other Borrowings		34,733		391	4.52				34,723		402	4.70				34,713		407	4.66				34,702		407	4.67				34,692		404	4.68
Total Interest-Bearing Liabilities		1,050,384		6,220	2.38				1,042,556		6,536	2.54				1,102,746		7,899	2.85				1,102,402		8,299	2.99				1,068,353		7,469	2.81
Noninterest-Bearing Demand Deposits		270,729							265,522							267,598							263,650							272,280
Total Funding and Cost of Funds		1,321,113			1.89				1,308,078			2.03				1,370,344			2.29				1,366,052			2.42				1,340,633			2.24
Other Liabilities		20,789							11,854							17,883							15,043							21,867
Total Liabilities		1,341,902							1,319,932							1,388,227							1,381,095							1,362,500
Stockholders' Equity		147,139							147,763							147,873							145,593							140,664
Total Liabilities and Stockholders' Equity	$	1,489,041						$	1,467,695						$	1,536,100						$	1,526,688						$	1,503,164
Net Interest Income (FTE) (Non-GAAP) (3)			$	12,597						$	11,367						$	11,577						$	11,516						$	11,511
Net Interest-Earning Assets (4)		371,144							361,815							367,568							366,684							381,247
Net Interest Rate Spread (FTE) (Non-GAAP) (3) (5)					2.93	%						2.63	%						2.42	%						2.38	%						2.46	%
Net Interest Margin (FTE) (Non-GAAP) (3)(6)					3.55							3.28							3.13							3.12							3.19

(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, 2025									June 30, 2024
	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)	$	1,086,955		$	30,132		5.59	%		$	1,082,172		$	29,586		5.50	%
Debt Securities
Taxable		281,447			5,637		4.01				250,912			5,148		4.10
Marketable Equity Securities		1,832			37		4.04				2,693			54		4.01
Interest-Earning Deposits at Banks		39,278			789		4.02				80,082			2,045		5.11
Other Interest-Earning Assets		3,484			123		7.12				3,195			171		10.76
Total Interest-Earning Assets		1,412,996			36,718		5.24				1,419,054			37,004		5.24
Noninterest-Earning Assets		65,758									54,141
Total Assets	$	1,478,754								$	1,473,195
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts	$	326,322		$	3,203		1.98	%		$	329,974		$	3,653		2.23	%
Savings Accounts		173,193			83		0.10				188,194			111		0.12
Money Market Accounts		234,436			3,473		2.99				209,279			3,159		3.04
Time Deposits		272,229			5,074		3.76				278,538			6,133		4.43
Total Interest-Bearing Deposits		1,006,180			11,833		2.37				1,005,985			13,056		2.61
Short-Term Borrowings		5,584			131		4.73				1			—		—
Other Borrowings		34,728			792		4.60				34,687			808		4.68
Total Interest-Bearing Liabilities		1,046,492			12,756		2.46				1,040,673			13,864		2.68
Noninterest-Bearing Demand Deposits		268,140									275,485
Total Funding and Cost of Funds		1,314,632					1.96				1,316,158					2.12
Other Liabilities		16,673									16,559
Total Liabilities		1,331,305									1,332,717
Stockholders' Equity		147,449									140,478
Total Liabilities and Stockholders' Equity	$	1,478,754								$	1,473,195
Net Interest Income (FTE) (Non-GAAP) (3)					23,962									23,140
Net Interest-Earning Assets (4)		366,504									378,381
Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5)							2.78	%								2.56	%
Net Interest Margin (FTE) (Non-GAAP) (3)(6)							3.42									3.28

(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.

	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24
(Dollars in thousands, except share and per share data) (Unaudited)
Total Assets (GAAP)	$	1,517,984		$	1,483,456		$	1,481,564		$	1,561,741		$	1,560,259
Goodwill and Intangible Assets, Net		(9,732	)		(9,732	)		(9,732	)		(9,820	)		(10,085	)
Tangible Assets (Non-GAAP) (Numerator)	$	1,508,252		$	1,473,724		$	1,471,832		$	1,551,921		$	1,550,174
Stockholders' Equity (GAAP)	$	148,362		$	148,289		$	147,378		$	149,140		$	142,882
Goodwill and Intangible Assets, Net		(9,732	)		(9,732	)		(9,732	)		(9,820	)		(10,085	)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)	$	138,630		$	138,557		$	137,646		$	139,320		$	132,797
Stockholders’ Equity to Assets (GAAP)		9.8	%		10.0	%		9.9	%		9.5	%		9.2	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		9.2	%		9.4	%		9.4	%		9.0	%		8.6	%
Common Shares Outstanding (Denominator)		4,972,300			5,099,069			5,132,654			5,129,921			5,141,911
Book Value per Common Share (GAAP)	$	29.84		$	29.08		$	28.71		$	29.07		$	27.79
Tangible Book Value per Common Share (Non-GAAP)	$	27.88		$	27.17		$	26.82		$	27.16		$	25.83

	Three Months Ended															Six Months Ended
	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24			6/30/25			6/30/24
(Dollars in thousands) (Unaudited)
Net Income (GAAP)	$	3,949		$	1,909		$	2,529		$	3,219		$	2,650		$	5,858		$	6,847
Amortization of Intangible Assets, Net		—			—			88			264			264			—			605
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,949		$	1,909		$	2,617		$	3,483		$	2,914		$	5,858		$	7,452
Annualization Factor		4.01			4.06			3.98			3.98			4.02			2.02			2.01
Average Stockholders' Equity (GAAP)	$	147,139		$	147,763		$	147,873		$	145,593		$	140,664		$	147,449		$	140,478
Average Goodwill and Intangible Assets, Net		(9,732	)		(9,732	)		(9,758	)		(9,987	)		(10,242	)		(9,732	)		(10,398	)
Average Tangible Common Equity (Non-GAAP) (Denominator)	$	137,407		$	138,031		$	138,115		$	135,606		$	130,422		$	137,717		$	130,080
Return on Average Equity (GAAP)		10.76	%		5.24	%		6.80	%		8.80	%		7.58	%		8.01	%		9.80	%
Return on Average Tangible Common Equity (Non-GAAP)		11.53	%		5.61	%		7.54	%		10.22	%		8.99	%		8.58	%		11.52	%

	Three Months Ended															Six Months Ended
	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24			6/30/25			6/30/24
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)	$	18,760		$	17,847		$	19,431		$	19,773		$	18,939		$	36,606		$	36,926
Adjustment to FTE Basis		57			56			45			42			41			112			78
Interest Income (FTE) (Non-GAAP)		18,817			17,903			19,476			19,815			18,980			36,718			37,004
Interest Expense (GAAP)		6,220			6,536			7,899			8,299			7,469			12,756			13,864
Net Interest Income (FTE) (Non-GAAP)	$	12,597		$	11,367		$	11,577		$	11,516		$	11,511		$	23,962		$	23,140
Net Interest Rate Spread (GAAP)		2.91	%		2.61	%		2.41	%		2.36	%		2.44	%		2.76	%		2.55	%
Adjustment to FTE Basis		0.02			0.02			0.01			0.02			0.02			0.02			0.01
Net Interest Rate Spread (FTE) (Non-GAAP)		2.93	%		2.63	%		2.42	%		2.38	%		2.46	%		2.78	%		2.56	%
Net Interest Margin (GAAP)		3.54	%		3.27	%		3.12	%		3.11	%		3.18	%		3.40	%		3.27	%
Adjustment to FTE Basis		0.01			0.01			0.01			0.01			0.01			0.02			0.01
Net Interest Margin (FTE) (Non-GAAP)		3.55	%		3.28	%		3.13	%		3.12	%		3.19	%		3.42	%		3.28	%

	Three Months Ended															Six Months Ended
	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24			6/30/25			6/30/24
(Dollars in thousands) (Unaudited)
Income Before Income Tax Expense (GAAP)	$	4,715		$	2,336		$	3,051		$	3,966		$	3,210		$	7,051		$	8,327
Net Provision (Recovery) for Credit Losses		8			(40	)		683			(41	)		(36	)		(32	)		(73	)
PPNR (Non-GAAP)		4,723			2,296			3,734			3,925			3,174			7,019			8,254
Adjustments
Net Loss (Gain) on Securities		—			69			(3	)		(245	)		31			69			197
Gain on Sale of Subsidiary		—			—			—			(138	)		—			—			—
Net Gain on Disposal of Premises and Equipment		—			—			—			—			—			—			(274	)
Earn-out Payment Related to the Sale of EU		—			(49	)		(708	)		—			—			(49	)		—
Net Gain on Bank-Owned Life Insurance Claims		—			—			—			—			—			—			(915	)
Reduction in Force Expenses		—			1,003			—			—			—
Adjusted PPNR (Non-GAAP) (Numerator)	$	4,723		$	3,319		$	3,023		$	3,542		$	3,205		$	7,039		$	7,262
Annualization Factor		4.01			4.06			3.98			3.98			4.02			2.02			2.01
Average Assets (Denominator)	$	1,489,041		$	1,467,695		$	1,536,100		$	1,526,688		$	1,503,164		$	1,478,754		$	1,473,195
Adjusted PPNR Return on Average Assets (Non-GAAP)		1.27	%		0.92	%		0.78	%		0.92	%		0.86	%		0.96	%		0.99	%

	Three Months Ended															Six Months Ended
	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24			6/30/25			6/30/24
(Dollars in thousands, except share and per share data) (Unaudited)
Net Income (GAAP)	$	3,949		$	1,909		$	2,529		$	3,219		$	2,650		$	5,858		$	6,847
Adjustments
Net Loss (Gain) on Securities		—			69			(3	)		(245	)		31			69			197
Gain on Sale of Subsidiary		—			—			—			(138	)		—			—			—
Net Gain on Disposal of Premises and Equipment		—			—			—			—			—			—			(274	)
Earn-out Payment Related to the Sale of EU		—			(49	)		(708	)		—			—			(49	)		—
Net Gain on Bank-Owned Life Insurance Claims		—			—			—			—			—			—			(915	)
Reduction in Force Expenses		—			1,003			—			—			—			1,003			—
Tax effect		—			(215	)		149			90			(7	)		(215	)		16
Adjusted Net Income (Non-GAAP)	$	3,949		$	2,717		$	1,967		$	2,926		$	2,674		$	6,666		$	5,871
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding		5,332,026			5,471,006			5,544,829			5,346,750			5,152,657			5,387,924			5,151,188
Earnings per Common Share - Diluted (GAAP)	$	0.74		$	0.35		$	0.46		$	0.60		$	0.51		$	1.09		$	1.33
Adjusted Earnings per Common Share - Diluted (Non-GAAP)	$	0.74		$	0.50		$	0.35		$	0.55		$	0.52		$	1.24		$	1.14
Net Income (GAAP) (Numerator)	$	3,949		$	1,909		$	2,529		$	3,219		$	2,650		$	5,858		$	6,847
Annualization Factor		4.01			4.06			3.98			3.98			4.02			2.02			2.01
Average Assets (Denominator)		1,489,041			1,467,695			1,536,100			1,526,688			1,503,164			1,478,754			1,473,195
Return on Average Assets (GAAP)		1.06	%		0.53	%		0.65	%		0.84	%		0.71	%		0.80	%		0.93	%
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,949		$	2,717		$	1,967		$	2,926		$	2,674		$	6,666		$	5,871
Annualization Factor		4.01			4.06			3.98			3.98			4.02			2.02			2.01
Average Assets (Denominator)		1,489,041			1,467,695			1,536,100			1,526,688			1,503,164			1,478,754			1,473,195
Adjusted Return on Average Assets (Non-GAAP)		1.06	%		0.75	%		0.51	%		0.76	%		0.72	%		0.91	%		0.80	%

	Three Months Ended															Six Months Ended
	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24			6/30/25			6/30/24
(Dollars in thousands) (Unaudited)
Net Income (GAAP) (Numerator)	$	3,949		$	1,909		$	2,529		$	3,219		$	2,650		$	5,858		$	6,847
Annualization Factor		4.01			4.06			3.98			3.98			4.02			2.02			2.01
Average Equity (GAAP) (Denominator)		147,139			147,763			147,873			145,593			140,664			147,449			140,478
Return on Average Equity (GAAP)		10.76	%		5.24	%		6.80	%		8.80	%		7.58	%		8.01	%		9.80	%
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,949		$	2,717		$	1,967		$	2,926		$	2,674		$	6,666		$	5,871
Annualization Factor		4.01			4.06			3.98			3.98			4.02			2.02			2.01
Average Equity (GAAP) (Denominator)		147,139			147,763			147,873			145,593			140,664			147,449			140,478
Adjusted Return on Average Equity (Non-GAAP)		10.76	%		7.46	%		5.29	%		8.00	%		7.65	%		9.12	%		8.40	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250722697079/en/

Company Contact:

John H. Montgomery

President and Chief Executive Officer

Phone: (724) 223-8317

Source: CB Financial Services, Inc.