CB Financial Services, Inc. Announces Second Quarter and Year-to-Date 2021 Financial Results and Declares Quarterly Cash Dividend

Rhea-AI Summary

CB Financial Services, Inc. (CBFV) reported a net loss of $223,000 for Q2 2021, down from a net income of $2.9 million in Q2 2020, primarily due to a $3.4 million write-down related to branch optimization. Adjusted net income increased to $3.2 million, up from $2.5 million year-over-year. Total assets reached $1.46 billion, with a tangible book value per share of $21.56. The company is undergoing branch consolidation and expects $2.5 to $3.5 million in savings starting in 2022. A quarterly dividend of $0.24 was declared, with a share repurchase program ongoing.

Positive

• Adjusted net income rose to $3.2 million from $2.5 million year-over-year.
• Total assets increased to $1.46 billion, demonstrating growth.
• Tangible book value per share improved to $21.56 from $21.42.
• Anticipated annual cost savings between $2.5 million to $3.5 million starting in 2022 from optimization initiatives.

Negative

• Net loss of $223,000 reported, a significant decline from prior year's profit.
• Net interest margin decreased to 2.84%, down from 3.28% year-over-year.
• Total loans decreased by $25.9 million, indicating potential lending challenges.

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 second quarter and year-to-date 2021 financial results.

	Three Months Ended																Six Months Ended
	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
(Dollars in thousands, except per share data) (Unaudited)
Net (Loss) Income (GAAP)	$	(223)		$	2,845		$	3,079		$	(17,395)		$	2,903			$	2,622		$	3,676
Excluding Non-Recurring Items (Non-GAAP) (1)	3,440			(353)			40			19,337			(408)				3,087			(76)
Adjusted Net Income (Non-GAAP) (1)	$	3,217		$	2,492		$	3,119		$	1,942		$	2,495			$	5,709		$	3,600
(Loss) Earnings per Common Share - Diluted (GAAP)	$	(0.04)		$	0.52		$	0.57		$	(3.22)		$	0.54			$	0.48		$	0.68
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)	$	0.59		$	0.46		$	0.58		$	0.36		$	0.46			$	1.05		$	0.66

(1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of net (loss) income and adjusted earnings per common share - diluted in this Press Release.

2021 Second Quarter Financial Highlights

(Comparisons to three months ended June 30, 2020)

• Net loss was $223,000, compared to net income of $2.9 million, largely due to the write-down of fixed assets and intangible assets impairment ($3.4 million including tax effect) relating to the Bank’s previously announced branch optimization initiatives, which are excluded in the Company’s adjusted financial results.
  • Adjusted net income (non-GAAP) was $3.2 million, compared to adjusted net income of $2.5 million.
• Loss per diluted common share (EPS) decreased to $0.04 from earnings per share of $0.54.
  • Adjusted earnings per common share - diluted (non-GAAP) was $0.59, compared to $0.46.
• Loss on average assets (annualized) of 0.06%, compared to return on average assets (annualized) of 0.85%.
  • Adjusted return on average assets (annualized) (non-GAAP) of 0.87%, compared to 0.73%.
• Loss on average equity (annualized) of 0.66%, compared return on average equity (annualized) to 7.65%.
  • Adjusted return on average equity (annualized) (non-GAAP) of 9.57%, compared to 6.57%.
• Net interest margin decreased to 2.84% from 3.28%.
• Net interest and dividend income was $9.9 million, compared to $10.3 million.
• Noninterest income was $2.2 million, compared to $2.6 million.

(Amounts at June 30, 2021; comparisons to December 31, 2020)

• Total loans including Payroll Protection Program (“PPP”) loans and loans held for sale were $1.02 billion, a decrease of $25.9 million.
• Total loans including loans held for sale and excluding PPP loans were $969.3 million, a decrease of $20.3 million.
• Total deposits including deposits held for sale were $1.28 billion, an increase of $51.5 million.
• Total assets increased to a record $1.46 billion, compared to $1.42 billion.
• Book value per share was $24.50, compared to $24.76.
• Tangible book value per share (Non-GAAP) increased to $21.56, compared to $21.42.

Branch Optimization and Operational Efficiency Update

CB continues to make progress related to the previously announced branch optimization and operational efficiency initiatives. These initiatives include the consolidation of six branches that was completed on June 30, 2021, the sale of two branches expected to be finalized in the fourth quarter of 2021 and implementation of operational efficiencies related to over 185 individualized processes within its branch network and operating environment that are designed to improve the Bank’s infrastructure, client experience, efficiency and profitability.

CB presently expects to incur $7.9 million of non-recurring expenses in 2021 and, as of June 30, 2021, has incurred $5.1 million of expenses related to these items. The expenses include $2.3 million writedown on fixed assets and $1.2 million impairment of intangible assets associated with the branch consolidations and sales.

In addition, as part of CB’s branch optimization and operational efficiency initiatives, the Company incurred $1.6 million of expenses related to contracted services, employee severance costs, branch lease impairment, professional fees, data processing fees, legal and other expenses.

The majority of the remaining expenses to be recognized in 2021 are related to the operational and revenue efficiency initiative of approximately $1.5 million that will be reflected in contracted services. CB anticipates savings from this initiative ranging from approximately $2.5 million to $3.5 million in 2022, as well as creating possible enhanced revenue and fee generating capacity in future years.

In addition, the Company expects an annual reduction in pre-tax operating expenses in 2021 of approximately $1.0 million, along with $3.0 million of ongoing pre-tax cost savings as a result of the branch optimization initiatives. The Company expects these ongoing savings to be incremental to net income beginning in 2022. This estimated cost excludes the favorable impact of the expected premium from sale of branches expected to be recognized in the fourth quarter of 2021 and currently estimated to be $5.1 million.

Management Commentary

President and CEO John H. Montgomery stated, “The Company reported an increase in adjusted net income during the period, which was largely driven by economic recovery in our core markets in Southwestern Pennsylvania and the Ohio Valley. We were pleased to have only a moderate decline in loan volumes during the recovery, with steady growth in commercial construction and stabilizing auto originations despite lower dealer supplies. Growing our lending business, while expanding core deposit relationships, continues to be a priority for the remainder of the year. We continue to capitalize on successful deposit gathering initiatives to further reduce our cost of funds. Given the current tightening NIM environment, we are hyper-focused on reducing costs and expenses at the bank.”

Mr. Montgomery continued, “We remain focused on executing our previously-announced branch optimization initiatives to strengthen our franchise. This resulted in identifying six branches that were consolidated, as well as announcing a Purchase and Assumption Agreement to sell two West Virginia branches by the end of the year, which allows for Community Bank to focus on its core markets as well as improve our efficiency efforts. We have implemented a number of strategies to take advantage of the continued speed of digital adoption in banking, which will improve CB’s ability to adapt to a changing consumer environment. We expect this to result in a more streamlined operating infrastructure, which we expect will help to drive better-than-peer operating returns for our shareholders in the future.”

Dividend Information

The Company’s Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about August 31, 2021, to stockholders of record as of the close of business on August 20, 2021.

Stock Repurchase Program

On June 10, 2021, CB authorized a program to repurchase up to $7.5 million of the Company’s outstanding common stock. The program is effective as of June 14, 2021 and authorized through June 13, 2022. As of July 23, 2021, the Company had expended $1.0 million to repurchase 45,462 shares at an average price of $22.38.

2021 Second Quarter Financial Review

Net Interest and Dividend Income

• Net interest and dividend income decreased $387,000, or 3.7%, to $9.9 million for the three months ended June 30, 2021 compared to $10.3 million for the three months ended June 30, 2020.
• Net interest margin (FTE) (Non-GAAP) decreased 45 basis points (“bps”) to 2.85% for the three months ended June 30, 2021 compared to 3.30% for the three months ended June 30, 2020. Net interest margin (GAAP) decreased to 2.84% for the three months ended June 30, 2021 compared to 3.28% for the three months ended June 30, 2020. While CB has further controlled its deposit cost structure as deposit balances increased and benefited from nonrenewal or repricing of higher cost time deposits, the net interest margin has decreased primarily due to the low interest rate environment decreasing yields on loans and securities.
• Interest and dividend income decreased $907,000, or 7.7%, to $10.8 million for the three months ended June 30, 2021 compared to $11.7 million for the three months ended June 30, 2020.
  • Interest income on loans decreased $641,000, or 6.1%, to $9.9 million for the three months ended June 30, 2021 compared to $10.6 million for the three months ended June 30, 2020. While average loans increased $2.9 million compared to the three months ended June 30, 2020, the average yield decreased 28 bps to 3.93%. Interest and fee income on PPP loans was $636,000 for the three months ended June 30, 2021 and contributed 3 bps to loan yield, compared to $316,000 for the three months ended June 30, 2020, which decreased loan yield 7 bps in the prior period. The impact of the accretion of the credit mark on acquired loan portfolios was $153,000 for the three months ended June 30, 2021 compared to $90,000 for the three months ended June 30, 2020, or 6 bps in the current period compared to 4 bps in the prior period.
  • Interest income on taxable investment securities decreased $305,000, or 32.4%, to $635,000 for the three months ended June 30, 2021 compared to $940,000 for the three months ended June 30, 2020 driven by a $12.6 million decrease in average investment securities balances and 70 bps decrease in average yield. The Federal Reserve’s pandemic-driven decision to drop the benchmark interest rate in 2020 resulted in significant calls of U.S. government agency securities and paydowns on mortgage-backed securities in the declining interest rate environment, which were replaced with lower-yielding securities or maintained in cash.
  • Other interest and dividend income, which primarily consists of interest-bearing cash, increased $67,000, or 79.8% to $151,000 for the three months ended June 30, 2021 compared to $84,000 for the three months ended June 30, 2020. Average other interest-earning assets increased $149.4 million compared to the three months ended June 30, 2020 primarily from buildup of cash as a result of securities activity, PPP loan funds and government stimulus payments deposited with the Bank, although average yield declined 10 bps due to interest rate cuts on interest-earning cash deposits held at other financial institutions.
• Interest expense decreased $520,000, or 37.0%, to $886,000 for the three months ended June 30, 2021 compared to $1.4 million for the three months ended June 30, 2020.
  • Interest expense on deposits decreased $478,000, or 36.6%, to $827,000 for the three months ended June 30, 2021 compared to $1.3 million for the three months ended June 30, 2020. While average interest-earning deposits increased $47.9 million compared to the three months ended June 30, 2020, interest rate declines for all products driven by pandemic-related market interest rate cuts resulted in a 25 bp, or 40.6%, decrease in average cost compared to the three months ended June 30, 2020. In addition, average time deposits and the related average cost decreased $28.3 million and 31 bps, respectively.

Provision for Loan Losses

Provision for loan losses was a recovery of $1.2 million for the three months ended June 30, 2021 compared to a provision of $300,000 for the three months ended June 30, 2020. A $23.4 million decrease in net reservable loans in the current quarter, which excludes PPP loans and includes the reclassification of $11.4 million of loans to held for sale, along with a decrease in specific reserves on impaired loans and improvements in the economic and industry outlook contributed to the recovery in the current period.

Noninterest income

Noninterest income decreased $429,000, or 16.2%, to $2.2 million for the three months ended June 30, 2021, compared to $2.6 million for the three months ended June 30, 2020. The decrease was largely due to lower net gains on securities and loans compared to the prior period, offset by an increase in other income due to the recognition of a $269,000 valuation allowance adjustment on mortgage servicing rights in the prior period and increase in service fees.

Noninterest Expense

Noninterest expense increased $4.7 million, or 51.3%, to $13.7 million for the three months ended June 30, 2021 compared to $9.1 million for the three months ended June 30, 2020. The increase was largely due to the aforementioned $2.3 million writedown of fixed assets and $1.2 million intangible asset impairment associated with the branch consolidation and sale initiative, as well as $1.3 million of expenses incurred in the current quarter related to various other costs associated with strategic initiatives such as employee severance, contracted services, lease impairment, and legal and investment banker fees.

Statement of Financial Condition Review

Assets

Total assets increased $44.9 million, or 3.2%, to $1.46 billion at June 30, 2021, compared to $1.42 billion at December 31, 2020. The change is primarily due to higher cash and due from banks and securities.

• Cash and due from banks increased $11.1 million, or 6.9%, to $172.0 million at June 30, 2021, compared to $160.9 million at December 31, 2020. The change is primarily due to an increase in deposits as further described below in the Liabilities section.
• Securities increased $63.1 million, or 43.4%, to $208.5 million at June 30, 2021, compared to $145.4 million at December 31, 2020. Current period activity included $97.1 million of mortgage-backed securities and U.S. government agency securities purchases, $20.4 million of paydowns on mortgage-backed securities, and $11.9 million of mortgage-backed securities sales, which resulted in the recognition of a $225,000 gain on the sale of securities. The purchases were made to earn a higher yield on excess cash. The sales recognized gains on higher-interest securities with faster prepayment speeds. In addition, there was a $2.2 million decrease in the market value of the debt securities portfolio and a $233,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks.

Payroll Protection Program (“PPP”) Update

• PPP loans decreased $5.6 million to $49.5 million at June 30, 2021 compared to $55.1 million at December 31, 2020, which includes $34.6 million in originations in the current period offset by loan forgiveness.
• $1.1 million of net PPP loan origination fees were unearned at December 31, 2020. Due to activity in the current period, $1.4 million of net PPP loan origination fees were unearned at June 30, 2021. $489,000 of net PPP loan origination fees were earned in the second quarter of 2021 compared to $535,000 for the three months ended March 31, 2021.

   

Loans and Credit Quality

• Total loans held for investment decreased $37.3 million to $1.01 billion at June 30, 2021. This includes the impact of reclassifying $11.4 million of loans to held for sale. Excluding the net decline of $5.6 million in PPP loans in the current period and including $11.4 million of held for sale loans, loans declined $20.3 million.
• The allowance for loan losses was $11.5 million at June 30, 2021 compared to $12.8 million at December 31, 2020. There was a net recovery of $1.2 million of provision for loan losses in the current quarter. A $31.7 million decrease in net reservable loans in the current period, which excludes PPP loans and includes the reclassification of $11.4 million of loans to held for sale that do not require a reserve, as well as a decrease in specifically impaired loans and improving economic and industry conditions contributed to the net recovery in the current period. As a result, the allowance for loan losses to total loans was 1.15% at June 30, 2021 compared to 1.22% at December 31, 2020. The allowance for loan losses to total loans, excluding PPP loans, was 1.21% at June 30, 2021 compared to 1.29% at December 31, 2020.
• Net recoveries for the three months ended June 30, 2021 were $19,000, or (0.01)% of average loans on an annualized basis. Net recoveries for the three months ended June 30, 2020 were $26,000, or (0.01)% of average loans on an annualized basis. Net charge-offs for the six months ended June 30, 2021 were $27,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the six months ended June 30, 2020 were $19,000, or 0.00% of average loans on an annualized basis.
• Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $15.4 million at June 30, 2021 compared to $14.5 million at December 31, 2020. Nonperforming loans to total loans ratio was 1.53% at June 30, 2021 compared to 1.39% at December 31, 2020.
• There were nine loans in forbearance totaling $7.8 million at June 30, 2021 compared to 25 loans totaling $18.4 million at March 31, 2021, and 31 loans totaling $24.1 million at December 31, 2021. The remaining loans exit forbearance in July and have begun or are expected to begin making regularly scheduled payments.

Liabilities

Total liabilities increased $46.9 million, or 3.7%, to $1.33 billion at June 30, 2021 compared to $1.28 billion at December 31, 2020.

Deposits

• Total deposits, including deposits held for sale, increased $51.5 million to $1.28 billion as of June 30, 2021 compared to $1.22 billion at December 31, 2020. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $44.0 million, $16.5 million and $12.9 million, respectively, partially offset by a decrease of $17.0 million in time deposits. IRS and stimulus-related payments totaled $29.9 million in the first quarter and the impact of the PPP loans that were originated and the proceeds of which were initially deposited at the Bank was approximately $28.7 million. Annualized deposit growth rate was 8.4% including IRS and PPP loan deposits. Average total deposits increased $54.9 million, primarily in noninterest and interest-bearing demand deposits, for the three months ended June 30, 2021 compared to the three months ended March 31, 2021.

Borrowed Funds

• Short-term borrowings decreased $2.0 million, or 4.9%, to $39.1 million at June 30, 2021, compared to $41.1 million at December 31, 2020. At June 30, 2021 and December 31, 2020, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase. $10.1 million was excluded from short-term borrowings at June 30, 2021 and reported as deposits held for sale.
• Other borrowed funds decreased $2.0 million to $6.0 million at June 30, 2021 due to a Federal Home Loan Bank borrowing that matured in the current period.

   

Stockholders’ Equity

Stockholders’ equity decreased $2.0 million, or 1.5%, to $132.5 million at June 30, 2021, compared to $134.5 million at December 31, 2020. Accumulated other comprehensive income decreased $1.7 million primarily due to market interest rate conditions on the Bank’s debt securities. In addition, the Company repurchased $561,000 of its common stock as part of its stock repurchase program.

Book value per share

Book value per share was $24.50 at June 30, 2021 compared to $24.76 at December 31, 2020, a decrease of $0.26. Tangible book value per share (Non-GAAP) increased $0.14 to $21.56 compared to $21.42 at December 31, 2020. 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	6/30/21				3/31/21				12/31/20				9/30/20				6/30/20
ASSETS
Cash and Due From Banks	$	172,010			$	230,000			$	160,911			$	112,169			$	131,403
Securities	208,472				142,156				145,400				158,956				148,648
Loans Held for Sale	11,409				—				—				—				—
Loans
Real Estate:
Residential	322,480				339,596				344,142				343,955				344,782
Commercial	360,518				370,118				373,555				353,904				350,506
Construction	85,187				77,714				72,600				69,178				58,295
Commercial and Industrial
Commercial and Industrial	70,666				68,551				71,717				73,287				79,057
PPP	49,525				60,380				55,096				71,028				70,028
Consumer	106,404				111,650				113,854				117,364				117,145
Other	12,666				13,688				13,789				22,169				22,346
Total Loans	1,007,446				1,041,697				1,044,753				1,050,885				1,042,159
Allowance for Loan Losses	(11,544)				(12,725)				(12,771)				(13,780)				(12,648)
Loans, Net	995,902				1,028,972				1,031,982				1,037,105				1,029,511
Premises and Equipment Held for Sale	795				—				—				—				—
Premises and Equipment, Net	18,682				20,240				20,302				20,439				21,818
Bank-Owned Life Insurance	25,052				24,916				24,779				24,639				24,499
Goodwill	9,732				9,732				9,732				9,732				28,425
Intangible Assets, Net	6,186				7,867				8,399				8,931				9,463
Accrued Interest and Other Assets	13,373				12,938				15,215				20,905				13,385
Total Assets	$	1,461,613			$	1,476,821			$	1,416,720			$	1,392,876			$	1,407,152
LIABILITIES
Deposits Held for Sale	$	102,557			$	—			$	—			$	—			$	—
Deposits
Non-Interest Bearing Demand Deposits	368,452				377,137				340,569				335,287				341,180
Interest Bearing Demand Accounts	246,920				280,929				259,870				245,850				237,343
Money Market Accounts	176,824				198,975				199,029				188,958				184,726
Savings Accounts	226,639				246,725				235,088				232,691				229,388
Time Deposits	154,718				180,697				190,013				196,250				201,303
Total Deposits	1,173,553				1,284,463				1,224,569				1,199,036				1,193,940
Short-Term Borrowings	39,054				45,352				41,055				42,061				42,349
Other Borrowings	6,000				6,000				8,000				11,000				11,000
Accrued Interest and Other Liabilities	7,913				7,230				8,566				7,480				7,471
Total Liabilities	1,329,077				1,343,045				1,282,190				1,259,577				1,254,760
STOCKHOLDERS’ EQUITY	$	132,536			$	133,776			$	134,530			$	133,299			$	152,392

	Three Months Ended															Six Months Ended
Selected Operating Data	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20			6/30/21			6/30/20
Interest and Dividend Income
Loans, Including Fees	$	9,936		$	10,146		$	10,833		$	10,709		$	10,577		$	20,082		$	21,341
Securities:
Taxable	635			646			725			753			940			1,281			2,141
Tax-Exempt	74			78			78			79			106			152			212
Dividends	24			20			20			19			20			44			40
Other Interest and Dividend Income	151			98			99			96			84			249			322
Total Interest and Dividend Income	10,820			10,988			11,755			11,656			11,727			21,808			24,056
Interest Expense
Deposits	827			947			1,036			1,150			1,305			1,774			2,986
Short-Term Borrowings	24			23			25			28			39			47			84
Other Borrowings	35			41			60			62			62			76			132
Total Interest Expense	886			1,011			1,121			1,240			1,406			1,897			3,202
Net Interest and Dividend Income	9,934			9,977			10,634			10,416			10,321			19,911			20,854
(Recovery) Provision for Loan Losses	(1,200)			—			—			1,200			300			(1,200)			2,800
Net Interest and Dividend Income After (Recovery) Provision for Loan Losses	11,134			9,977			10,634			9,216			10,021			21,111			18,054
Noninterest Income:
Service Fees	614			546			560			554			487			1,160			1,092
Insurance Commissions	1,209			1,595			1,403			1,079			1,113			2,804			2,396
Other Commissions	173			165			105			76			188			338			298
Net Gain on Sales of Loans	31			86			388			435			441			117			568
Net Gain (Loss) on Securities	11			447			213			(59)			517			458			79
Net Gain on Purchased Tax Credits	17			18			16			15			16			35			31
Gain on sale of branches	—			—			—			—			—			—			—
Net (Loss) Gain on Disposal of Fixed Assets	(3)			—			(13)			(65)			—			(3)			17
Income from Bank-Owned Life Insurance	136			137			140			140			138			273			277
Other Income (Loss)	31			180			(34)			(2)			(252)			211			(238)
Total Noninterest Income	2,219			3,174			2,778			2,173			2,648			5,393			4,520
Noninterest Expense:
Salaries and Employee Benefits	5,076			4,894			5,126			5,124			4,828			9,970			9,559
Occupancy	1,024			710			606			759			699			1,734			1,432
Equipment	311			266			234			220			224			577			481
Data Processing	607			518			476			482			460			1,125			885
FDIC Assessment	249			250			344			172			163			499			321
PA Shares Tax	225			265			350			355			333			490			608
Contracted Services	750			687			577			531			562			1,437			940
Legal and Professional Fees	419			189			185			161			171			608			406
Advertising	193			140			178			148			155			333			338
Other Real Estate Owned (Income)	(26)			(38)			(39)			(12)			(1)			(64)			(18)
Amortization of Intangible Assets	503			532			532			532			532			1,035			1,064
Intangible Assets and Goodwill Impairment	1,178			—			—			18,693			—			1,178			—
Writedown of Fixed Assets	2,268			—			240			884			—			2,268			—
Other	945			982			916			919			945			1,927			2,058
Total Noninterest Expense	13,722			9,395			9,725			28,968			9,071			23,117			18,074
(Loss) Income Before Income Tax (Benefit) Expense	(369)			3,756			3,687			(17,579)			3,598			3,387			4,500
Income Tax (Benefit) Expense	(146)			911			608			(184)			695			765			824
Net (Loss) Income	$	(223)		$	2,845		$	3,079		$	(17,395)		$	2,903		$	2,622		$	3,676

		Three Months Ended																				Six Months Ended
Per Common Share Data		6/30/21				3/31/21				12/31/20				9/30/20				6/30/20				6/30/21				6/30/20
Dividends Per Common Share		$	0.24			$	0.24			$	0.24			$	0.24			$	0.24			$	0.48			$	0.48
(Loss) Earnings Per Common Share - Basic		(0.04)				0.52				0.57				(3.22)				0.54				0.48				0.68
(Loss) Earnings Per Common Share - Diluted		(0.04)				0.52				0.57				(3.22)				0.54				0.48				0.68
Adjusted Earnings Per Common Share - Diluted (1)		0.59				0.46				0.58				0.36				0.46				1.05				0.66
Weighted Average Common Shares Outstanding - Basic		5,432,234				5,434,374				5,404,874				5,395,342				5,393,712				5,433,298				5,412,456
Weighted Average Common Shares Outstanding - Diluted		5,432,234				5,436,881				5,406,068				5,395,342				5,393,770				5,438,401				5,423,770

	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
Common Shares Outstanding	5,409,077			5,434,374			5,434,374			5,398,712			5,393,712
Book Value Per Common Share	$	24.50		$	24.62		$	24.76		$	24.69		$	28.25
Tangible Book Value per Common Share (1)	21.56			21.38			21.42			21.23			21.23
Stockholders’ Equity to Assets	9.1		%	9.1		%	9.5		%	9.6		%	10.8		%
Tangible Common Equity to Tangible Assets (1)	8.1			8.0			8.3			8.3			8.4

		Three Months Ended															Six Months Ended
Selected Financial Ratios (2)		6/30/21			3/31/21			12/31/20			9/30/20			6/30/20			6/30/21			6/30/20
Return on Average Assets		(0.06)	%		0.81	%		0.87	%		(4.90)	%		0.85	%		0.36	%		0.55	%
Adjusted Return on Average Assets (1)		0.87			0.71			0.88			0.55			0.73			0.79			0.54
Return on Average Equity		(0.66)			8.54			9.13			(45.13)			7.65			3.92			4.84
Adjusted Return on Average Equity (1)		9.57			7.48			9.25			5.04			6.57			8.53			4.74
Average Interest-Earning Assets to Average Interest-Bearing Liabilities		146.82			142.98			141.58			141.98			140.72			144.94			137.91
Average Equity to Average Assets		9.08			9.48			9.49			10.85			11.08			9.27			11.36
Net Interest Rate Spread		2.72			2.91			3.07			3.03			3.10			2.81			3.22
Net Interest Rate Spread (FTE) (1)		2.74			2.92			3.08			3.05			3.12			2.82			3.23
Net Interest Margin		2.84			3.04			3.21			3.19			3.28			2.94			3.41
Net Interest Margin (FTE) (1)		2.85			3.05			3.22			3.21			3.30			2.95			3.43
Net (Recoveries) Charge-offs to Average Loans		(0.01)			0.02			0.39			0.03			(0.01)			0.01			—
Efficiency Ratio		112.91			71.44			72.51			230.11			69.94			91.36			71.23
Adjusted Efficiency Ratio (1)		80.68			70.06			68.06			69.78			68.58			75.25			67.36

Asset Quality Ratios		6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
Allowance for Loan Losses to Total Loans (3)		1.15	%		1.22	%		1.22	%		1.31	%		1.21	%
Allowance for Loan Losses to Total Loans, Excluding PPP Loans (1) (3)		1.21			1.30			1.29			1.41			1.30
Allowance for Loan Losses to Nonperforming Loans (3) (4)		74.92			89.29			88.15			91.84			226.59
Allowance for Loan Losses to Noncurrent Loans (3) (5)		90.83			118.08			117.20			114.01			390.73
Delinquent and Nonaccrual Loans to Total Loans (5) (6)		1.37			1.18			1.50			1.23			0.39
Nonperforming Loans to Total Loans (4)		1.53			1.37			1.39			1.43			0.54
Noncurrent Loans to Total Loans (5)		1.26			1.03			1.04			1.15			0.31
Nonperforming Assets to Total Assets (7)		1.07			0.98			1.04			1.09			0.41

Capital Ratios (8)		6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
Common Equity Tier 1 Capital (to Risk Weighted Assets)		11.67	%		11.85	%		11.79	%		11.62	%		11.90	%
Tier 1 Capital (to Risk Weighted Assets)		11.67			11.85			11.79			11.62			11.90
Total Capital (to Risk Weighted Assets)		12.92			13.10			13.04			12.88			13.16
Tier 1 Leverage (to Adjusted Total Assets)		7.23			7.87			7.81			7.63			7.90

(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)		Loans acquired in connection with the mergers with FedFirst Financial Corporation and First West Virginia Bancorp were recorded at their estimated fair value at the acquisition date and did not include a carryover of the pre-merger allowance for loan losses.
(4)		Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans.
(5)		Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due.
(6)		Delinquent loans consist of accruing loans that are 30 days or more past due.
(7)		Nonperforming assets consist of nonperforming loans and other real estate owned.
(8)		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, 2021									March 31, 2021									December 31, 2020									September 30, 2020									June 30, 2020
	Average Balance			Interest and Dividends			Yield / Cost (4)			Average Balance			Interest and Dividends			Yield / Cost (4)			Average Balance			Interest and Dividends			Yield / Cost (4)			Average Balance			Interest and Dividends			Yield / Cost (4)			Average Balance			Interest and Dividends			Yield / (Cost (4)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (6)	$	1,016,868		$	9,959		3.93	%		$	1,031,853		$	10,168		4.00	%		$	1,032,942		$	10,860		4.18	%		$	1,035,426		$	10,744		4.13	%		$	1,014,000		$	10,612		4.21	%
Debt Securities
Taxable	124,685			635			2.04			122,883			646			2.10			133,026			725			2.18			123,332			753			2.44			137,268			940			2.74
Exempt From Federal Tax	12,276			94			3.06			12,943			96			2.97			13,006			96			2.95			13,054			97			2.97			14,106			130			3.69
Equity Securities	2,649			24			3.62			2,632			20			3.04			2,612			20			3.06			2,580			19			2.95			2,579			20			3.10
Other Interest-Earning Assets	246,392			151			0.25			161,871			98			0.25			137,000			99			0.29			123,171			96			0.31			97,033			84			0.35
Total Interest-Earning Assets	1,402,870			10,863			3.11			1,332,182			11,028			3.36			1,318,586			11,800			3.56			1,297,563			11,709			3.59			1,264,986			11,786			3.75
Noninterest-Earning Assets	82,794									92,550									94,262									115,567									113,176
Total Assets	$	1,485,664								$	1,424,732								$	1,412,848								$	1,413,130								$	1,378,162
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (7)	$	275,752		55			0.08	%		$	259,065		77			0.12	%		$	252,521		83			0.13			$	245,977		99			0.16			$	236,312		141			0.24	%
Savings (7)	247,238			25			0.04			239,850			32			0.05			232,647			32			0.05			230,567			32			0.06			227,470			35			0.06
Money Market (7)	199,652			71			0.14			197,395			98			0.20			198,983			131			0.26			185,644			140			0.30			182,656			187			0.41
Time Deposits (7)	177,506			676			1.53			187,114			740			1.60			193,194			790			1.63			198,184			879			1.76			205,847			942			1.84
Total Interest-Bearing Deposits (7)	900,148			827			0.37			883,424			947			0.43			877,345			1,036			0.47			860,372			1,150			0.53			852,285			1,305			0.62
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase	49,325			24			0.20			41,094			23			0.23			43,468			25			0.23			42,512			28			0.26			35,642			39			0.44
Other Borrowings	6,000			35			2.34			7,200			41			2.31			10,543			60			2.26			11,000			62			2.24			11,000			62			2.27
Total Interest-Bearing Liabilities	955,473			886			0.37			931,718			1,011			0.44			931,356			1,121			0.48			913,884			1,240			0.54			898,927			1,406			0.63
Noninterest-Bearing Demand Deposits	387,317									349,108									338,223									337,441									317,738
Other Liabilities	7,999									8,869									9,176									8,477									8,815
Total Liabilities	1,350,789									1,289,695									1,278,755									1,259,802									1,225,480
Stockholders' Equity	134,875									135,037									134,093									153,328									152,682
Total Liabilities and Stockholders' Equity	$	1,485,664								$	1,424,732								$	1,412,848								$	1,413,130								$	1,378,162
Net Interest Income (FTE) (Non-GAAP) (5)				9,977									10,017									10,679									10,469									10,380
Net Interest-Earning Assets (1)	447,397									400,464									387,230									383,679									366,059
Net Interest Rate Spread (FTE) (Non-GAAP) (2) (5)							2.74	%								2.92	%								3.08									3.05									3.12	%
Net Interest Margin (FTE) (Non-GAAP) (3)(5)							2.85									3.05									3.22									3.21									3.30

(1)		Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(2)		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.
(3)		Net interest margin represents net interest income divided by average total interest-earning assets.
(4)		Annualized.
(5)		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.
(6)		Includes loans held for sale
(7)		Includes deposits held for sale

AVERAGE BALANCES AND YIELDS
	Six Months Ended
	June 30, 2021											June 30, 2020
	Average Balance				Interest and Dividends				Yield / Cost (4)			Average Balance				Interest and Dividends				Yield / Cost (4)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (5)	$	1,024,319			$	20,131			3.96	%		$	982,331			$	21,408			4.38	%
Debt Securities
Taxable	123,790				1,281				2.07			147,962				2,141				2.89
Exempt From Federal Tax	12,608				192				3.05			15,471				258				3.34
Marketable Equity Securities	2,641				44				3.33			2,573				40				3.11
Other Interest-Earning Assets	204,365				249				0.25			80,821				322				0.80
Total Interest-Earning Assets	1,367,723				21,897				3.23			1,229,158				24,169				3.95
Noninterest-Earning Assets	87,645											113,616
Total Assets	$	1,455,368										$	1,342,774
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (6)	$	267,455			133				0.10	%		$	231,397			408				0.35	%
Savings (6)	243,565				57				0.05			222,899				124				0.11
Money Market (6)	198,530				168				0.17			181,819				436				0.48
Time Deposits (6)	182,283				1,416				1.57			210,648				2,018				1.93
Total Interest-Bearing Deposits (6)	891,833				1,774				0.40			846,763				2,986				0.71
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase	45,232				47				0.21			32,592				84				0.52
Other Borrowings	6,597				76				2.32			11,890				132				2.23
Total Interest-Bearing Liabilities	943,662				1,897				0.41			891,245				3,202				0.72
Noninterest-Bearing Demand Deposits	368,318											289,621
Other Liabilities	8,433											9,306
Total Liabilities	1,320,413											1,190,172
Stockholders' Equity	134,955											152,602
Total Liabilities and Stockholders' Equity	$	1,455,368										$	1,342,774
Net Interest Income (FTE) (Non-GAAP)					20,000											20,967
Net Interest-Earning Assets (1)	424,061											337,913
Net Interest Rate Spread (FTE) (Non-GAAP) (2)									2.82	%										3.23	%
Net Interest Margin (FTE) (Non-GAAP) (3)									2.95											3.43

(1)		Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(2)		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.
(3)		Net interest margin represents net interest income divided by average total interest-earning assets.
(4)		Annualized
(5)		Includes loans held for sale
(6)		Includes deposits held for sale

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																Six Months Ended
	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
(Dollars in thousands, except share and per share data) (Unaudited)
Net (Loss) Income (GAAP)	$	(223)		$	2,845		$	3,079		$	(17,395)		$	2,903			$	2,622		$	3,676
Adjustments
(Gain) Loss on Sale of Securities	(11)			(447)			(213)			59			(517)				(458)			(79)
(Gain) Loss on Disposal of Fixed Assets	3			—			13			65			—				3			(17)
Tax effect	2			94			42			(26)			109				96			20
Non-Cash Charges:
Intangible Assets and Goodwill Impairment	1,178			—			—			18,693			—				1,178			—
Writedown on Fixed Assets	2,268			—			240			884			—				2,268			—
Tax Effect	—			—			(42)			(338)			—				—			—
Adjusted Net Income (Non-GAAP)	$	3,217		$	2,492		$	3,119		$	1,942		$	2,495			$	5,709		$	3,600
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding	5,432,234			5,436,881			5,406,068			5,395,342			5,393,770				5,438,401			5,423,770
(Loss) Earnings per Common Share - Diluted (GAAP)	$	(0.04)		$	0.52		$	0.57		$	(3.22)		$	0.54			$	0.48		$	0.68
Adjusted Earnings per Common Share - Diluted (Non-GAAP)	$	0.59		$	0.46		$	0.58		$	0.36		$	0.46			$	1.05		$	0.66
Net (Loss) Income (GAAP) (Numerator)	$	(223)		$	2,845		$	3,079		$	(17,395)		$	2,903			$	2,622		$	3,676
Annualization Factor	4.01			4.06			3.98			3.98			4.02				2.02			2.01
Average Assets (Denominator)	1,485,664			1,424,732			1,412,848			1,413,130			1,378,162				1,455,368			1,342,774
Return on Average Assets (GAAP)	(0.06)		%	0.81		%	0.87		%	(4.90)		%	0.85		%		0.36		%	0.55		%
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,217		$	2,492		$	3,119		$	1,942		$	2,495			$	5,709		$	3,600
Annualization Factor	4.01			4.06			3.98			3.98			4.02				2.02			2.01
Average Assets (Denominator)	1,485,664			1,424,732			1,412,848			1,413,130			1,378,162				1,455,368			1,342,774
Adjusted Return on Average Assets (Non-GAAP)	0.87		%	0.71		%	0.88		%	0.55		%	0.73		%		0.79		%	0.54		%

	Three Months Ended																Six Months Ended
	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
(Dollars in thousands) (Unaudited)
Net (Loss) Income (GAAP) (Numerator)	$	(223)		$	2,845		$	3,079		$	(17,395)		$	2,903			$	2,622		$	3,676
Annualization Factor	4.01			4.06			3.98			3.98			4.02				2.02			2.01
Average Equity (Denominator)	134,875			135,037			134,093			153,328			152,682				134,955			152,602
Return on Average Equity (GAAP)	(0.66)		%	8.54		%	9.13		%	(45.13)		%	7.65		%		3.92		%	4.84		%
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,217		$	2,492		$	3,119		$	1,942		$	2,495			$	5,709		$	3,600
Annualization Factor	4.01			4.06			3.98			3.98			4.02				2.02			2.01
Average Equity (Denominator)	134,875			135,037			134,093			153,328			152,682				134,955			152,602
Adjusted Return on Average Equity (Non-GAAP)	9.57		%	7.48		%	9.25		%	5.04		%	6.57		%		8.53		%	4.74		%

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.

	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
(Dollars in thousands, except share and per share data) (Unaudited)
Assets (GAAP)	$	1,461,613		$	1,476,821		$	1,416,720		$	1,392,876		$	1,407,152
Goodwill and Intangible Assets, Net	(15,918)			(17,599)			(18,131)			(18,663)			(37,888)
Tangible Assets (Non-GAAP) (Numerator)	$	1,445,695		$	1,459,222		$	1,398,589		$	1,374,213		$	1,369,264
Stockholders' Equity (GAAP)	$	132,536		$	133,776		$	134,530		$	133,299		$	152,392
Goodwill and Intangible Assets, Net	(15,918)			(17,599)			(18,131)			(18,663)			(37,888)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)	$	116,618		$	116,177		$	116,399		$	114,636		$	114,504
Stockholders’ Equity to Assets (GAAP)	9.1		%	9.1		%	9.5		%	9.6		%	10.8		%
Tangible Common Equity to Tangible Assets (Non-GAAP)	8.1		%	8.0		%	8.3		%	8.3		%	8.4		%
Common Shares Outstanding (Denominator)	5,409,077			5,434,374			5,434,374			5,398,712			5,393,712
Book Value per Common Share (GAAP)	$	24.50		$	24.62		$	24.76		$	24.69		$	28.25
Tangible Book Value per Common Share (Non-GAAP)	$	21.56		$	21.38		$	21.42		$	21.23		$	21.23

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																Six Months Ended
	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)	$	10,820		$	10,988		$	11,755		$	11,656		$	11,727			$	21,808		$	24,056
Adjustment to FTE Basis	43			40			45			53			59				89			113
Interest Income (FTE) (Non-GAAP)	10,863			11,028			11,800			11,709			11,786				21,897			24,169
Interest Expense (GAAP)	886			1,011			1,121			1,240			1,406				1,897			3,202
Net Interest Income (FTE) (Non-GAAP)	$	9,977		$	10,017		$	10,679		$	10,469		$	10,380			$	20,000		$	20,967
Net Interest Rate Spread (GAAP)	2.72		%	2.91		%	3.07		%	3.03		%	3.10		%		2.81		%	3.22		%
Adjustment to FTE Basis	0.02			0.01			0.01			0.02			0.02				0.01			0.01
Net Interest Rate Spread (FTE) (Non-GAAP)	2.74			2.92			3.08			3.05			3.12				2.82			3.23
Net Interest Margin (GAAP)	2.84		%	3.04		%	3.21		%	3.19		%	3.28		%		2.94		%	3.41		%
Adjustment to FTE Basis	0.01			0.01			0.01			0.02			0.02				0.01			0.02
Net Interest Margin (FTE) (Non-GAAP)	2.85			3.05			3.22			3.21			3.30				2.95			3.43

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																Six Months Ended
	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20				6/30/21			6/30/20
(Dollars in thousands) (Unaudited)
Noninterest expense (GAAP)	$	13,722		$	9,395		$	9,725		$	28,968		$	9,071			$	23,117		$	18,074
Net Interest and Dividend Income (GAAP)	9,934			9,977			10,634			10,416			10,321				19,911			20,854
Noninterest Income (GAAP)	2,219			3,174			2,778			2,173			2,648				5,393			4,520
Operating Revenue (GAAP)	12,153			13,151			13,412			12,589			12,969				25,304			25,374
Efficiency Ratio (GAAP)	112.91		%	71.44		%	72.51		%	230.11		%	69.94		%		91.36		%	71.23		%
Noninterest expense (GAAP)	$	13,722		$	9,395		$	9,725		$	28,968		$	9,071			$	23,117		$	18,074
Less:
Other Real Estate Owned (Income)	(26)			(38)			(39)			(12)			(1)				(64)			(18)
Amortization of Intangible Assets	503			532			532			532			532				1,035			1,064
Intangible Assets and Goodwill Impairment	1,178			—			—			18,693			—				1,178			—
Writedown on Fixed Assets	2,268			—			240			884			—				2,268			—
Adjusted Noninterest Expense (Non-GAAP)	$	9,799		$	8,901		$	8,992		$	8,871		$	8,540			$	18,700		$	17,028
Net Interest and Dividend Income (GAAP)	9,934			9,977			10,634			10,416			10,321				19,911			20,854
Noninterest Income (GAAP)	2,219			3,174			2,778			2,173			2,648				5,393			4,520
Less:
Net Gain (Loss) on Securities	11			447			213			(59)			517				458			79
Net (Loss) Gain on Disposal of Fixed Assets	(3)			—			(13)			(65)			—				(3)			17
Adjusted Noninterest Income (Non-GAAP)	2,211			2,727			2,578			2,297			2,131				4,938			4,424
Adjusted Operating Revenue (Non-GAAP)	12,145			12,704			13,212			12,713			12,452				24,849			25,278
Adjusted Efficiency Ratio (Non-GAAP)	80.68		%	70.06		%	68.06		%	69.78		%	68.58		%		75.25		%	67.36		%

Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans.

	6/30/21			3/31/21			12/31/20			9/30/20			6/30/20
(Dollars in thousands) (Unaudited)
Allowance for Loan Losses	$	11,544		$	12,725		$	12,771		$	13,780		$	12,648
Total Loans	1,007,446			$	1,041,697		1,044,753			$	1,050,885		$	1,042,159
PPP Loans	(49,525)			(60,380)			(55,096)			(71,028)			(70,028)
Total Loans, Excluding PPP Loans (Non-GAAP)	$	957,921		$	981,317		$	989,657		$	979,857		$	972,131
Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP)	1.21		%	1.30		%	1.29		%	1.41		%	1.30		%

 

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FAQ

What were CB Financial Services' Q2 2021 financial results?

In Q2 2021, CB Financial reported a net loss of $223,000 compared to a net income of $2.9 million in Q2 2020, with total assets at $1.46 billion.

How much was the dividend declared by CB Financial Services in August 2021?

The Board of Directors declared a quarterly cash dividend of $0.24 per share, payable on or about August 31, 2021.

What is the impact of branch optimization on CB Financial's financials?

CB Financial expects cost savings of $2.5 to $3.5 million starting in 2022 due to branch optimization initiatives.

How did CB Financial's adjusted earnings per share (EPS) perform in Q2 2021?

The adjusted EPS for Q2 2021 was $0.59, an increase from $0.46 in Q2 2020.

What is the outlook for CB Financial Services' loan portfolio?

As of June 30, 2021, total loans decreased by $25.9 million, indicating potential challenges in loan growth.