CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM:
CBFV), the holding company of Community Bank (the “Bank”) and
Exchange Underwriters, Inc. (“EU”), a wholly-owned insurance
subsidiary of the Bank, today announced its first quarter 2023
financial results.
Three Months Ended
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
(Dollars in thousands, except per share
data) (Unaudited)
Net Income (GAAP)
$
4,156
$
4,152
$
3,929
$
118
$
3,047
Net Income Adjustments
(127
)
(66
)
(310
)
157
12
Adjusted Net Income (Non-GAAP) (1)
$
4,029
$
4,086
$
3,619
$
275
$
3,059
Earnings per Common Share - Diluted
(GAAP)
$
0.79
$
0.81
$
0.77
$
0.02
$
0.58
Adjusted Earnings per Common Share -
Diluted (Non-GAAP) (1)
$
0.77
$
0.80
$
0.71
$
0.05
$
0.59
(1) Refer to Explanation of Use of
Non-GAAP Financial Measures and reconciliation of adjusted net
income and adjusted earnings per common share - diluted in this
Press Release.
2023 First Quarter Financial
Highlights
(Comparisons to three months ended March 31, 2022 unless
otherwise noted)
- Net income was $4.2 million, compared to $3.0 million. Current
period results were driven primarily by net interest margin (NIM)
expansion coupled with a modest increase in noninterest income.
- Adjusted net income (Non-GAAP) was $4.0 million, compared to
$3.1 million.
- Earnings per diluted common share (EPS) increased to $0.79 from
$0.58.
- Adjusted earnings per common share - diluted (Non-GAAP) was
$0.77, compared to $0.59.
- Return on average assets (annualized) of 1.21%, compared to
0.87%.
- Adjusted return on average assets (annualized) (Non-GAAP) of
1.18%, compared to 0.87%.
- Return on average equity (annualized) of 14.69%, compared to
9.50%.
- Adjusted return on average equity (annualized) (Non-GAAP) of
14.24%, compared to 9.54%.
- NIM improved to 3.51% from 3.08%.
- Net interest and dividend income was $11.6 million, compared to
$9.9 million.
- Noninterest income increased to $2.8 million, compared to $2.6
million. The most significant changes in noninterest income
included increases in net gains on bank-owned life insurance of
$302,000 resulting from two death claims and insurance commissions
of $124,000, partially offset by an increase in net losses on
securities of $225,000.
(Amounts at March 31, 2023; comparisons to December 31, 2022,
unless otherwise noted)
- Total assets increased to $1.43 billion from $1.41
billion.
- Total loans increased $22.0 million, or 8.4% annualized, to
$1.07 billion compared to $1.05 billion, and included increases of
$16.0 million, or 3.7%, in commercial real estate, $9.5 million, or
13.5%, in commercial and industrial loans and $2.1 million, or
0.6%, in residential mortgages, partially offset by decreases of
$5.4 million, or 12.0%, in construction real estate, and $846,000,
or 0.8%, in consumer loans.
- Nonperforming loans to total loans was 0.67%, an increase of 12
basis points (“bps”), compared to 0.55%.
- Total deposits were $1.28 billion, an increase of $13.0
million, compared to $1.27 billion.
- Book value per share was $22.90, compared to $21.60 as of
December 31, 2022 and $23.69 as of March 31, 2022.
- Tangible book value per share (Non-GAAP) was $20.40, compared
to $19.00 as of December 31, 2022 and $20.86 as of March 31, 2022,
increase was related to current period items of net income of $4.2
million, $2.1 million due to the Company’s January 1, 2023 adoption
of CECL, and $2.0 million positive impact to Accumulated Other
Comprehensive Loss from a decrease in unrealized losses on
securities portfolios. This was partially offset by the current
period dividend paid to stockholders of $1.3 million and $130,000
of common stock repurchased since December 31, 2022.
Management Commentary
President and CEO John H. Montgomery stated, “I am pleased to
note that we posted solid first quarter results which are a
testament to the quality of our business, particularly in light of
recent negative news regarding issues at large regional banks. As a
community bank, our model is markedly different from that of large
money center, regional, and other notable ‘specialty’ banks that
concentrate on specific industries such as venture capital-backed
startups. That community bank model, focused on a well-diversified
business on both the asset and liability sides of the balance
sheet, is at the heart of what we do and continues to buoy us in
uncertain times. We provide financial products to a wide range of
local borrowers, from homebuyers to local businesses, all of which
are underwritten and managed by an experienced leadership team that
has proven success managing credit through prior periods of
economic turbulence. We also have a diversified, high-quality
capital base. Our depositors are primarily local residents and
businesses we know well and who appreciate our focus on serving
their needs.”
Mr. Montgomery continued, “Turning back to our first quarter
results, continued interest rate increases by the Federal Reserve
helped drive an expansion in our net interest margin as variable
rate loans repriced to higher rates. That coupled with an expansion
in our total loan book drove a $1.7 million, or 17.1%, increase in
net interest and dividend income for the quarter, compared to the
first quarter a year ago. While it is certainly nice to experience
this expansion, we are also seeing increasing upward pressure on
deposit rates. As expected, the rates we are paying on deposits
have also gone up and we anticipate that to continue. It is also
important to highlight that our deposit base is well-diversified,
with 75.6% below the $250,000 level.”
Mr. Montgomery concluded, “Our bank remains well-capitalized and
I would like to emphasize that we have had no need to borrow from
the Federal Reserve during the recent banking industry issues, just
as we did not require any TARP injections during the Great
Recession. I would also like to stress that we have no securities
classified as ‘held to maturity’ - all of our holdings are
classified as ‘available-for-sale’. Our strong capital position has
us well-positioned to continue pursuing our internal growth
programs while enabling us to maintain our commitment to share our
positive returns with CB shareholders. Toward the end of 2022, we
increased our regular quarterly dividend to $0.25 per share and
have maintained it at that level with our first quarter
declaration. In addition, we repurchased 5,686 shares during the
first quarter under the current $10.0 million share repurchase
program announced in early 2022. Our capital position gives use the
ability to support growth along with these shareholder-friendly
actions.”
Dividend Information
The Company’s Board of Directors declared a $0.25 quarterly cash
dividend per outstanding share of common stock, payable on or about
May 31, 2023, to stockholders of record as of the close of business
on May 15, 2023.
Stock Repurchase Program
On April 21, 2022, CB announced a program to repurchase up to
$10.0 million of the Company’s outstanding shares of common stock.
Based on the Company’s closing stock price at April 26, 2023, the
repurchase program, if fully completed, would encompass 426,461
shares, or approximately 8.3% of the shares currently
outstanding.
2023 First Quarter Financial
Review
Net Interest and Dividend
Income
Net interest and dividend income increased $1.7 million, or
17.1%, to $11.6 million for the three months ended March 31, 2023
compared to $9.9 million for the three months ended March 31,
2022.
- Net interest margin (GAAP) increased to 3.51% for the three
months ended March 31, 2023 compared to 3.08% for the three months
ended March 31, 2022. Fully tax equivalent (“FTE”) net interest
margin (Non-GAAP) increased 42 bps to 3.52% for the three months
ended March 31, 2023 compared to 3.10% for the three months ended
March 31, 2022.
- Interest and dividend income increased $3.6 million, or 34.2%,
to $14.2 million for the three months ended March 31, 2023 compared
to $10.6 million for the three months ended March 31, 2022.
- Interest income on loans increased $2.8 million, or 29.5%, to
$12.4 million for the three months ended March 31, 2023 compared to
$9.6 million for the three months ended March 31, 2022. The average
balance of loans increased $31.4 million to $1.04 billion from
$1.01 billion, generating $311,000 of additional interest income on
loans. The average yield increased 98 bps to 4.83% compared to
3.85% causing a $2.5 million increase in interest income on loans.
Interest and fee income on PPP loans was $445,000 for the three
months ended March 31, 2022, which contributed 13 bps to loan yield
while the current year quarter was not materially impacted by PPP
loan-related interest and fee income.
- Interest income on taxable investment securities increased
$59,000, or 6.5%, to $964,000 for the three months ended March 31,
2023 compared to $905,000 for the three months ended March 31, 2022
driven by a 13 bps increase in average yield.
- Interest income on interest bearing deposits at other banks
increased $772,000, to $805,000 for the three months ended March
31, 2023 compared to $33,000 for the three months ended March 31,
2022 as average balances increased $15.3 million and the average
yield increased 410 bps. Higher cash balances were maintained as a
result of increased deposits while the increase in the average
yield was the result of the Federal Reserve Bank’s interest rate
increases.
- Interest expense increased $1.9 million, or 268.0%, to $2.7
million for the three months ended March 31, 2023 compared to
$723,000 for the three months ended March 31, 2022.
- Interest expense on deposits increased $2.0 million, or 372.5%,
to $2.5 million for the three months ended March 31, 2023 compared
to $530,000 for the three months ended March 31, 2022. Average
interest-earning deposit balances increased $47.4 million, or 5.6%,
to $892.2 million as of March 31, 2023 compared to $844.8 million
as of March 31, 2022, and rising interest rates led to the
repricing of higher-cost demand and money market deposits and
resulted in an 89 bps, or 349.8%, increase in average cost compared
to the three months ended March 31, 2022. Partially offsetting this
increase, the average balance of time deposits and the related
average cost decreased $30.9 million and 5 bps, respectively.
Provision for Credit Losses
Effective January 1, 2023, the Company adopted ASU 2016-13,
“Financial Instruments - Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments”, which replaced the
incurred loss methodology with an expected loss methodology that is
referred to as the current expected credit loss (CECL) methodology.
The provision for credit losses in the first quarter of 2023 was
calculated using CECL and resulted in an $80,000 provision for
credit losses recorded for the three months ended March 31, 2023
compared to no provision for credit losses recorded for the three
months ended March 31, 2022.
Noninterest income
Noninterest income increased $197,000, or 7.5%, to $2.8 million
for the three months ended March 31, 2023, compared to $2.6 million
for the three months ended March 31, 2022. This increase was
primarily related to a $302,000 increase in net gains on bank-owned
life insurance claims resulting from two death claims and an
increase of $124,000 in insurance commissions primarily driven by
contingency income which resulted from the timing of lock-in
amounts received and core business including commercial and
personal insurance lines. These increases were partially offset by
an increase in net losses on securities of $225,000.
Noninterest Expense
Noninterest expense increased $372,000, or 4.3%, to $9.0 million
for the three months ended March 31, 2023 compared to $8.7 million
for the three months ended March 31, 2022. Salaries and benefits
increased $514,000, or 11.3%, to $5.1 million primarily due to
merit increases and staffing additions, while data processing
expense increased $372,000, or 76.7%, to $857,000, due to increased
ongoing costs related to the fourth quarter 2022 core conversion.
Conversely, contracted services decreased $440,000 to $147,000 for
the three months ended March 31, 2023 compared to $587,000 for the
three months ended March 31, 2022.
Statement of Financial Condition
Review
Assets
Total assets increased $21.8 million, or 1.5%, to $1.43 billion
at March 31, 2023, compared to $1.41 billion at December 31,
2022.
- Cash and due from banks decreased to $103.5 million at March
31, 2023, compared to $103.7 million at December 31, 2022.
- Securities decreased $1.0 million, or 0.5%, to $189.0 million
at March 31, 2023, compared to $190.1 million at December 31, 2022.
The securities balance was primarily impacted by $3.4 million of
repayments on mortgage-backed and collateralized mortgage
obligation securities and a $232,000 decrease in the market value
in the equity securities portfolio, which is primarily comprised of
bank stocks. These decreases were partially offset by a $2.6
million increase in the market value of the debt securities
portfolio.
Loans and Credit Quality
- Total loans increased $22.0 million, or 2.1%, to $1.07 billion
at March 31, 2023 compared to $1.05 billion at December 31, 2022.
Loan growth was driven by increases in commercial real estate,
commercial and industrial loans and residential mortgages of $16.0
million, $9.5 million, and $2.1 million, respectively, partially
offset by decreases in construction real estate and consumer loans
of $5.4 million and $846,000, respectively. Growth in commercial
and industrial loans included the purchase of $8.9 million of
syndicated loans.
- The allowance for credit losses (ACL) was $10.3 million at
March 31, 2023 and $12.8 million at December 31, 2022. As a result,
the ACL to total loans was 0.96% at March 31, 2023 compared to
1.22% at December 31, 2022. The change in the ACL was primarily due
to the Company's aforementioned adoption of CECL. Contributing to
the change in ACL was a prior year charge-off of $2.7 million and
qualitative factors that significantly impacted the incurred loss
model driven by historical activity compared to the adopted CECL
methodology that is centered around current expected credit loss
(CECL) activity using a forecast approach. At adoption, the Company
decreased its ACL by $3.4 million.
- Net recoveries for the three months ended March 31, 2023 were
$756,000, or 0.29% of average loans on an annualized basis. This is
due to recoveries totaling $750,000 related to the prior year
commercial and industrial charged-off loan for $2.7 million. Net
recoveries for the three months ended March 31, 2022 were $13,000,
or 0.01% of average loans on an annualized basis.
- Nonperforming loans, which includes nonaccrual loans and
accruing loans past due 90 days or more, were $7.2 million at March
31, 2023 compared to $5.8 million at December 31, 2022. The
increase of $1.4 million was due to a commercial real estate loan
relationship that moved to non-accrual in the current period.
Current nonperforming loans to total loans ratio was 0.67% compared
to 0.55% at December 31, 2022.
Other
- Intangible assets decreased $445,000, or 11.4%, to $3.1 million
at March 31, 2023 compared to $3.5 million at December 31, 2022 due
to amortization expense recognized during the period.
Total liabilities increased $14.7 million, or 1.1%, to $1.31
billion at March 31, 2023 compared to $1.30 billion at December 31,
2022.
Deposits
- Total deposits increased $13.0 million to $1.28 billion as of
March 31, 2023 compared to $1.27 billion at December 31, 2022, an
annualized increase of 4.1%. Interest-bearing demand deposits
increased $47.2 million and time deposits increased $21.3 million,
while non interest-bearing demand deposits decreased $39.5 million
and savings deposits decreased $13.1 million. The increase in
interest-bearing demand deposits is primarily the result of higher
interest rates attracting more customers and/or additional deposits
from existing customers. FDIC insured deposits totaled
approximately 62.9% of total deposits.
Borrowed Funds
- Short-term borrowings decreased $7.9 million, or 98.5%, to
$121,000 at March 31, 2023, compared to $8.1 million at December
31, 2022. At March 31, 2023 and December 31, 2022, short-term
borrowings were comprised entirely of securities sold under
agreements to repurchase. This decrease is due to accounts that
were transitioned into other deposit products and account for a
portion of the interest-bearing demand deposit increase.
Accrued Interest Payable and Other
Liabilities
- Accrued interest payable and other liabilities increased $9.6
million, or 127.2%, to $17.2 million at March 31, 2023, compared to
$7.6 million at December 31, 2022 primarily due to the purchase of
$8.9 million of syndicated loans which were unfunded at the end of
the period.
Stockholders’ Equity
Stockholders’ equity increased $7.0 million, or 6.4%, to $117.2
million at March 31, 2023, compared to $110.2 million at December
31, 2022. Key factors impacting stockholders’ equity included the
positive impact of $4.2 million of net income coupled with the
change in accumulated other comprehensive loss, which decreased
$2.0 million primarily due to the effect of changes in market
interest rates on the Company’s investment securities. In addition,
stockholders’ equity was positively impacted by $2.1 million, net
of tax, due to the Company’s January 1, 2023 adoption of CECL as
described above. These factors were partially offset by the payment
of $1.3 million in dividends since December 31, 2022 and activity
under share repurchase programs. On April 21, 2022, a $10 million
repurchase program was authorized, with the Company repurchasing
67,864 shares at an average price of $22.45 per share since the
inception of the plan. In total, the Company repurchased $130,000
of common stock since December 31, 2022.
Book value per share
Book value per common share was $22.90 at March 31, 2023
compared to $21.60 at December 31, 2022, an increase of $1.30.
Tangible book value per common share (Non-GAAP) was $20.40 at
March 31, 2023, compared to $19.00 at December 31, 2022, an
increase of $1.40.
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 and provides commercial and
personal insurance brokerage services through Exchange
Underwriters, Inc., its wholly owned subsidiary.
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, the scope and duration of economic contraction as a
result of the COVID-19 pandemic and its effects on the Company’s
business and that of the Company’s customers, 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
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Assets
Cash and Due From Banks
$
103,545
$
103,700
$
122,801
$
81,121
$
123,588
Securities
189,025
190,058
193,846
213,505
231,097
Loans
Real Estate:
Residential
332,840
330,725
328,248
325,138
317,254
Commercial
452,770
436,805
432,516
426,105
427,227
Construction
39,522
44,923
49,502
41,277
54,227
Commercial and Industrial:
Commercial and Industrial
79,436
69,918
61,428
62,054
59,601
PPP
65
126
768
3,853
8,242
Consumer
146,081
146,927
150,615
148,921
143,422
Other
21,151
20,449
19,865
20,621
10,669
Total Loans
1,071,865
1,049,873
1,042,942
1,027,969
1,020,642
Allowance for Credit Losses
(10,270
)
(12,819
)
(12,854
)
(12,833
)
(11,595
)
Loans, Net
1,061,595
1,037,054
1,030,088
1,015,136
1,009,047
Premises and Equipment, Net
17,732
17,844
18,064
18,196
18,349
Bank-Owned Life Insurance
24,943
25,893
25,750
25,610
25,468
Goodwill
9,732
9,732
9,732
9,732
9,732
Intangible Assets, Net
3,068
3,513
3,959
4,404
4,850
Accrued Interest Receivable and Other
Assets
21,068
21,144
21,680
18,757
16,539
Total Assets
$
1,430,708
$
1,408,938
$
1,425,920
$
1,386,461
$
1,438,670
Liabilities
Deposits
Non-Interest Bearing Demand Accounts
$
350,911
$
390,405
$
407,107
$
389,127
$
400,105
Interest Bearing Demand Accounts
359,051
311,825
298,755
265,347
280,455
Money Market Accounts
206,174
209,125
198,715
185,308
192,929
Savings Accounts
234,935
248,022
250,378
250,226
247,589
Time Deposits
130,449
109,126
120,879
125,182
129,235
Total Deposits
1,281,520
1,268,503
1,275,834
1,215,190
1,250,313
Short-Term Borrowings
121
8,060
18,108
32,178
39,219
Other Borrowings
14,648
14,638
17,627
17,618
17,607
Accrued Interest Payable and Other
Liabilities
17,224
7,582
7,645
7,703
9,375
Total Liabilities
1,313,513
1,298,783
1,319,214
1,272,689
1,316,514
Stockholders’ Equity
117,195
110,155
106,706
113,772
122,156
Total Liabilities and Stockholders’
Equity
$
1,430,708
$
1,408,938
$
1,425,920
$
1,386,461
$
1,438,670
(Dollars in thousands, except share and
per share data) (Unaudited)
Three Months Ended
Selected Operating Data
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Interest and Dividend Income
Loans, Including Fees
$
12,371
$
11,835
$
10,815
$
9,733
$
9,551
Securities:
Taxable
964
974
985
988
905
Tax-Exempt
41
40
49
57
66
Dividends
24
28
21
20
22
Other Interest and Dividend Income
844
978
417
160
72
Total Interest and Dividend Income
14,244
13,855
12,287
10,958
10,616
Interest Expense
Deposits
2,504
1,811
1,079
604
530
Short-Term Borrowings
2
7
19
18
19
Other Borrowings
155
171
174
173
174
Total Interest Expense
2,661
1,989
1,272
795
723
Net Interest and Dividend Income
11,583
11,866
11,015
10,163
9,893
Provision for Credit Losses
80
—
—
3,784
—
Net Interest and Dividend Income After
Provision for Credit Losses
11,503
11,866
11,015
6,379
9,893
Noninterest Income:
Service Fees
445
530
544
559
526
Insurance Commissions
1,922
1,399
1,368
1,369
1,798
Other Commissions
144
157
244
179
89
Net Gain on Sales of Loans
2
—
—
—
—
Net (Loss) Gain on Securities
(232
)
83
(46
)
(199
)
(7
)
Net Gain on Purchased Tax Credits
7
14
14
14
14
Net Gain (Loss) on Disposal of Fixed
Assets
11
—
439
—
(8
)
Income from Bank-Owned Life Insurance
140
143
140
142
136
Net Gain on Bank-Owned Life Insurance
Claims
302
—
—
—
—
Other Income
69
34
36
41
65
Total Noninterest Income
2,810
2,360
2,739
2,105
2,613
Noninterest Expense:
Salaries and Employee Benefits
5,079
4,625
4,739
4,539
4,565
Occupancy
701
817
768
776
686
Equipment
218
178
170
182
210
Data Processing
857
681
540
446
485
FDIC Assessment
152
154
147
128
209
PA Shares Tax
260
258
240
240
240
Contracted Services
147
405
288
348
587
Legal and Professional Fees
182
362
334
389
152
Advertising
79
165
131
115
116
Other Real Estate Owned (Income)
(37
)
(38
)
(38
)
(37
)
(38
)
Amortization of Intangible Assets
445
446
445
446
445
Other
945
945
1,063
838
999
Total Noninterest Expense
9,028
8,998
8,827
8,410
8,656
Income Before Income Tax Expense
(Benefit)
5,285
5,228
4,927
74
3,850
Income Tax Expense (Benefit)
1,129
1,076
998
(44
)
803
Net Income
$
4,156
$
4,152
$
3,929
$
118
$
3,047
Three Months Ended
Per Common Share Data
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Dividends Per Common Share
$
0.25
$
0.24
$
0.24
$
0.24
$
0.24
Earnings Per Common Share - Basic
0.81
0.81
0.77
0.02
0.59
Earnings Per Common Share - Diluted
0.79
0.81
0.77
0.02
0.58
Adjusted Earnings Per Common Share -
Diluted (Non-GAAP) (1)
0.77
0.80
0.71
0.05
0.59
Weighted Average Common Shares Outstanding
- Basic
5,109,597
5,095,237
5,106,861
5,147,846
5,198,194
Weighted Average Common Shares Outstanding
- Diluted
5,262,982
5,104,254
5,118,627
5,156,975
5,220,887
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Common Shares Outstanding
5,116,830
5,100,189
5,096,672
5,128,333
5,156,897
Book Value Per Common Share
$
22.90
$
21.60
$
20.94
$
22.18
$
23.69
Tangible Book Value per Common Share
(1)
20.40
19.00
18.25
19.43
20.86
Stockholders’ Equity to Assets
8.2
%
7.8
%
7.5
%
8.2
%
8.5
%
Tangible Common Equity to Tangible Assets
(1)
7.4
6.9
6.6
7.3
7.6
Three Months Ended
Selected Financial Ratios (2)
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Return on Average Assets
1.21
%
1.16
%
1.12
%
0.03
%
0.87
%
Adjusted Return on Average Assets (1)
1.18
1.15
1.03
0.08
0.87
Return on Average Equity
14.69
15.26
13.60
0.40
9.50
Adjusted Return on Average Equity (1)
14.24
15.01
12.53
0.93
9.54
Average Interest-Earning Assets to Average
Interest-Bearing Liabilities
147.53
149.04
149.41
149.03
144.48
Average Equity to Average Assets
8.27
7.63
8.20
8.49
9.14
Net Interest Rate Spread
3.12
3.17
3.10
3.00
2.98
Net Interest Rate Spread (FTE) (1)
3.13
3.18
3.11
3.01
2.99
Net Interest Margin
3.51
3.45
3.29
3.12
3.08
Net Interest Margin (FTE) (1)
3.52
3.46
3.30
3.13
3.10
Net (Recoveries) and Charge-offs to
Average Loans
(0.29
)
0.01
(0.01
)
1.01
(0.01
)
Efficiency Ratio
62.72
63.25
64.18
68.55
69.21
Adjusted Efficiency Ratio (1)
60.23
60.74
63.02
64.18
65.88
Asset Quality Ratios
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Allowance for Credit Losses to Total
Loans
0.96
%
1.22
%
1.23
%
1.25
%
1.14
%
Allowance for Credit Losses to
Nonperforming Loans (3)
143.44
221.06
218.61
219.89
158.88
Allowance for Credit Losses to Noncurrent
Loans (4)
189.73
320.64
318.96
329.47
218.28
Delinquent and Nonaccrual Loans to Total
Loans (4) (5)
1.02
0.81
0.46
0.45
0.79
Nonperforming Loans to Total Loans (3)
0.67
0.55
0.56
0.57
0.72
Noncurrent Loans to Total Loans (4)
0.51
0.38
0.39
0.38
0.52
Nonperforming Assets to Total Assets
(6)
0.52
0.41
0.41
0.42
0.51
Capital Ratios (7)
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
Common Equity Tier 1 Capital (to Risk
Weighted Assets)
12.60
%
12.33
%
12.02
%
11.83
%
11.99
%
Tier 1 Capital (to Risk Weighted
Assets)
12.60
12.33
12.02
11.83
11.99
Total Capital (to Risk Weighted
Assets)
13.69
13.58
13.27
13.08
13.20
Tier 1 Leverage (to Adjusted Total
Assets)
9.24
8.66
8.51
8.33
8.19
(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)
Noncurrent loans consist of nonaccrual loans and accruing
loans that are 90 days or more past due.
(5)
Delinquent loans consist of accruing loans that are 30 days
or more past due.
(6)
Nonperforming assets consist of nonperforming loans and
other real estate owned.
(7)
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
March 31, 2023
December 31, 2022
September 30, 2022
June 30, 2022
March 31, 2022
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)
$
1,040,570
$
12,391
4.83
%
$
1,034,714
$
11,853
4.54
%
$
1,024,363
$
10,833
4.20
%
$
1,007,874
$
9,751
3.88
%
$
1,009,210
$
9,573
3.85
%
Debt Securities
Taxable
213,158
964
1.81
216,915
974
1.80
222,110
985
1.77
228,315
988
1.73
215,906
905
1.68
Exempt From Federal Tax
6,270
52
3.32
6,277
51
3.25
7,998
62
3.10
9,109
73
3.21
10,195
84
3.30
Equity Securities
2,693
24
3.56
2,693
28
4.16
2,693
21
3.12
2,693
20
2.97
2,693
22
3.27
Interest-Bearing Deposits at Banks
74,555
805
4.32
99,108
939
3.79
67,870
378
2.23
56,379
122
0.87
59,296
33
0.22
Other Interest-Earning Assets
2,633
39
6.01
2,875
39
5.38
2,784
39
5.56
3,235
38
4.71
3,483
39
4.54
Total Interest-Earning Assets
1,339,879
14,275
4.32
1,362,582
13,884
4.04
1,327,818
12,318
3.68
1,307,605
10,992
3.37
1,300,783
10,656
3.32
Noninterest-Earning Assets
48,369
51,718
68,796
84,323
122,288
Total Assets
$
1,388,248
$
1,414,300
$
1,396,614
$
1,391,928
$
1,423,071
Liabilities and Stockholders'
Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits
$
335,327
$
1,191
1.44
%
$
315,352
$
810
1.02
%
$
278,412
$
393
0.56
$
260,655
$
111
0.17
$
276,603
$
48
0.07
%
Savings
242,298
37
0.06
249,948
29
0.05
251,148
20
0.03
248,356
20
0.03
243,786
19
0.03
Money Market
213,443
939
1.78
206,192
604
1.16
189,371
269
0.56
188,804
61
0.13
192,425
41
0.09
Time Deposits
101,147
337
1.35
116,172
368
1.26
123,438
397
1.28
127,832
412
1.29
132,015
422
1.30
Total Interest-Bearing Deposits
892,215
2,504
1.14
887,664
1,811
0.81
842,369
1,079
0.51
825,647
604
0.29
844,829
530
0.25
Short-Term Borrowings
Securities Sold Under Agreements to
Repurchase
1,344
2
0.60
8,985
7
0.31
28,738
19
0.26
34,135
18
0.21
37,884
19
0.20
Other Borrowings
14,641
155
4.29
17,598
171
3.86
17,621
174
3.92
17,611
173
3.94
17,604
174
4.01
Total Interest-Bearing Liabilities
908,200
2,661
1.19
914,247
1,989
0.86
888,728
1,272
0.57
877,393
795
0.36
900,317
723
0.33
Noninterest-Bearing Demand Deposits
362,343
391,300
390,658
391,975
384,188
Other Liabilities
2,953
788
2,636
4,415
8,554
Total Liabilities
1,273,496
1,306,335
1,282,022
1,273,783
1,293,059
Stockholders' Equity
114,752
107,965
114,592
118,145
130,012
Total Liabilities and Stockholders'
Equity
$
1,388,248
$
1,414,300
$
1,396,614
$
1,391,928
$
1,423,071
Net Interest Income (FTE)
(Non-GAAP) (3)
$
11,614
$
11,895
$
11,046
$
10,197
$
9,933
Net Interest-Earning Assets (4)
431,679
448,335
439,090
430,212
400,466
Net Interest Rate Spread (FTE)
(Non-GAAP) (3) (5)
3.13
%
3.18
%
3.11
%
3.01
%
2.99
%
Net Interest Margin (FTE)
(Non-GAAP) (3)(6)
3.52
3.46
3.30
3.13
3.10
PPP Loans
100
3
12.17
216
22
40.41
2,424
123
20.13
5,546
144
10.41
14,673
445
12.30
(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.
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 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.
Three Months Ended
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
(Dollars in thousands, except share and
per share data) (Unaudited)
Net Income (GAAP)
$
4,156
$
4,152
$
3,929
$
118
$
3,047
Adjustments
Loss (Gain) on Securities
232
(83
)
46
199
7
(Gain) Loss on Disposal of Fixed
Assets
(11
)
—
(439
)
—
8
Gain on Bank-Owned Life Insurance
Claims
(302
)
—
—
—
—
Tax effect
(46
)
17
83
(42
)
(3
)
Adjusted Net Income (Non-GAAP)
$
4,029
$
4,086
$
3,619
$
275
$
3,059
Weighted-Average Diluted Common Shares and
Common Stock Equivalents Outstanding
5,262,982
5,104,254
5,118,627
5,156,975
5,220,887
Earnings per Common Share - Diluted
(GAAP)
$
0.79
$
0.81
$
0.77
$
0.02
$
0.58
Adjusted Earnings per Common Share -
Diluted (Non-GAAP)
$
0.77
$
0.80
$
0.71
$
0.05
$
0.59
Net Income (GAAP) (Numerator)
$
4,156
$
4,152
$
3,929
$
118
$
3,047
Annualization Factor
4.06
3.97
3.97
4.01
4.06
Average Assets (Denominator)
1,388,248
1,414,300
1,396,614
1,391,928
1,423,071
Return on Average Assets (GAAP)
1.21
%
1.16
%
1.12
%
0.03
%
0.87
%
Adjusted Net Income (Non-GAAP)
(Numerator)
$
4,029
$
4,086
$
3,619
$
275
$
3,059
Annualization Factor
4.06
3.97
3.97
4.01
4.06
Average Assets (Denominator)
1,388,248
1,414,300
1,396,614
1,391,928
1,423,071
Adjusted Return on Average Assets
(Non-GAAP)
1.18
%
1.15
%
1.03
%
0.08
%
0.87
%
Three Months Ended
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
(Dollars in thousands) (Unaudited)
Net Income (GAAP) (Numerator)
$
4,156
$
4,152
$
3,929
$
118
$
3,047
Annualization Factor
4.06
3.97
3.97
4.01
4.06
Average Equity (GAAP) (Denominator)
114,752
107,965
114,592
118,145
130,012
Return on Average Equity (GAAP)
14.69
%
15.26
%
13.60
%
0.40
%
9.50
%
Adjusted Net Income (Non-GAAP)
(Numerator)
$
4,029
$
4,086
$
3,619
$
275
$
3,059
Annualization Factor
4.06
3.97
3.97
4.01
4.06
Average Equity (GAAP) (Denominator)
114,752
107,965
114,592
118,145
130,012
Adjusted Return on Average Equity
(Non-GAAP)
14.24
%
15.01
%
12.53
%
0.93
%
9.54
%
Tangible book value per common share is a Non-GAAP measure and
is calculated based on tangible common equity divided by period-end
common shares outstanding. Tangible common equity to tangible
assets is a Non-GAAP measure and is calculated based on tangible
common equity divided by tangible assets. We believe these Non-GAAP
measures serve as useful tools to help evaluate the strength and
discipline of the Company's capital management strategies and as an
additional, conservative measure of the Company’s total value.
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
(Dollars in thousands, except share and
per share data) (Unaudited)
Assets (GAAP)
$
1,430,708
$
1,408,938
$
1,425,920
$
1,386,461
$
1,438,670
Goodwill and Intangible Assets, Net
(12,800
)
(13,245
)
(13,691
)
(14,136
)
(14,582
)
Tangible Assets (Non-GAAP) (Numerator)
$
1,417,908
$
1,395,693
$
1,412,229
$
1,372,325
$
1,424,088
Stockholders' Equity (GAAP)
$
117,195
$
110,155
$
106,706
$
113,772
$
122,156
Goodwill and Intangible Assets, Net
(12,800
)
(13,245
)
(13,691
)
(14,136
)
(14,582
)
Tangible Common Equity or Tangible Book
Value (Non-GAAP) (Denominator)
$
104,395
$
96,910
$
93,015
$
99,636
$
107,574
Stockholders’ Equity to Assets (GAAP)
8.2
%
7.8
%
7.5
%
8.2
%
8.5
%
Tangible Common Equity to Tangible Assets
(Non-GAAP)
7.4
%
6.9
%
6.6
%
7.3
%
7.6
%
Common Shares Outstanding
(Denominator)
5,116,830
5,100,189
5,096,672
5,128,333
5,156,897
Book Value per Common Share (GAAP)
$
22.90
$
21.60
$
20.94
$
22.18
$
23.69
Tangible Book Value per Common Share
(Non-GAAP)
$
20.40
$
19.00
$
18.25
$
19.43
$
20.86
Interest income on interest-earning assets, net interest rate
spread and net interest margin are presented on a fully
tax-equivalent (“FTE”) basis. The FTE basis adjusts for the tax
benefit of income on certain tax-exempt loans and securities using
the federal statutory income tax rate of 21 percent. We believe the
presentation of net interest income on a FTE basis ensures
comparability of net interest income arising from both taxable and
tax-exempt sources and is consistent with industry practice. The
following table reconciles net interest income, net interest spread
and net interest margin on a FTE basis for the periods
indicated:
Three Months Ended
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)
$
14,244
$
13,855
$
12,287
$
10,958
$
10,616
Adjustment to FTE Basis
31
29
31
34
40
Interest Income (FTE) (Non-GAAP)
14,275
13,884
12,318
10,992
10,656
Interest Expense (GAAP)
2,661
1,989
1,272
795
723
Net Interest Income (FTE) (Non-GAAP)
$
11,614
$
11,895
$
11,046
$
10,197
$
9,933
Net Interest Rate Spread (GAAP)
3.12
%
3.17
%
3.10
%
3.00
%
2.98
%
Adjustment to FTE Basis
0.01
0.01
0.01
0.01
0.01
Net Interest Rate Spread (FTE)
(Non-GAAP)
3.13
3.18
3.11
3.01
2.99
Net Interest Margin (GAAP)
3.51
%
3.45
%
3.29
%
3.12
%
3.08
%
Adjustment to FTE Basis
0.01
0.01
0.01
0.01
0.02
Net Interest Margin (FTE) (Non-GAAP)
3.52
3.46
3.30
3.13
3.10
Adjusted efficiency ratio excludes the effect of certain
non-recurring or non-cash items and represents adjusted noninterest
expense divided by adjusted operating revenue. The Company
evaluates its operational efficiency based on its adjusted
efficiency ratio and believes it provides additional perspective on
its ongoing performance as well as peer comparability.
Three Months Ended
3/31/23
12/31/22
9/30/22
6/30/22
3/31/22
(Dollars in thousands) (Unaudited)
Noninterest Expense (GAAP) (Numerator)
$
9,028
$
8,998
$
8,827
$
8,410
$
8,656
Net Interest and Dividend Income
(GAAP)
$
11,583
$
11,866
$
11,015
$
10,163
$
9,893
Noninterest Income (GAAP)
2,810
2,360
2,739
2,105
2,613
Operating Revenue (GAAP) (Denominator)
$
14,393
$
14,226
$
13,754
$
12,268
$
12,506
Efficiency Ratio (GAAP)
62.72
%
63.25
%
64.18
%
68.55
%
69.21
%
Noninterest Expense (GAAP)
$
9,028
$
8,998
$
8,827
$
8,410
$
8,656
Less:
Other Real Estate Owned (Income)
(37
)
(38
)
(38
)
(37
)
(38
)
Amortization of Intangible Assets
445
446
445
446
445
Adjusted Noninterest Expense (Non-GAAP)
(Numerator)
$
8,620
$
8,590
$
8,420
$
8,001
$
8,249
Net Interest and Dividend Income
(GAAP)
$
11,583
$
11,866
$
11,015
$
10,163
$
9,893
Noninterest Income (GAAP)
2,810
2,360
2,739
2,105
2,613
Less:
Net (Loss) Gain on Securities
(232
)
83
(46
)
(199
)
(7
)
Net Gain (Loss) on Disposal of Fixed
Assets
11
—
439
—
(8
)
Net Gain on Bank-Owned Life Insurance
Claims
302
—
—
—
—
Adjusted Noninterest Income (Non-GAAP)
$
2,729
$
2,277
$
2,346
$
2,304
$
2,628
Adjusted Operating Revenue (Non-GAAP)
(Denominator)
$
14,312
$
14,143
$
13,361
$
12,467
$
12,521
Adjusted Efficiency Ratio (Non-GAAP)
60.23
%
60.74
%
63.02
%
64.18
%
65.88
%
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version on businesswire.com: https://www.businesswire.com/news/home/20230428005521/en/
Company Contact: John H. Montgomery
President and Chief Executive Officer Phone: (724) 225-2400
Investor Relations: Jeremy Hellman,
Vice President The Equity Group Inc. Phone: (212) 836-9626 Email:
jhellman@equityny.com
CB Financial Services (NASDAQ:CBFV)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
CB Financial Services (NASDAQ:CBFV)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
