CB Financial Services, Inc. Announces Third Quarter and Year-to-Date 2022 Financial Results and Declares Quarterly Cash Dividend

Rhea-AI Summary

CB Financial Services, Inc. (NASDAQGM: CBFV) reported a strong performance for Q3 2022, achieving a net income of $3.9 million compared to $2.0 million in Q3 2021. This growth was driven by a notable expansion in net interest margin to 3.29% and a reduction in noninterest expenses. Adjusted earnings per share rose to $0.71 from $0.36 year-over-year. The total loans increased to $1.04 billion, with significant gains in consumer and commercial real estate loans. The company also repurchased shares and declared a quarterly dividend of $0.24, reflecting a commitment to shareholder value.

Positive

• Net income increased to $3.9 million from $2.0 million in Q3 2021.
• Earnings per share rose to $0.77, up from $0.37 year-over-year.
• Net interest margin improved to 3.29%, up from 2.88% in Q3 2021.
• Total loans increased by $22.1 million to $1.04 billion.
• Share repurchase of 30,271 shares during Q3 under a $10 million program.
• Quarterly dividend declared at $0.24 per share.

Negative

• Total stockholders' equity decreased by 19.8%, from $133.1 million to $106.7 million.
• Tangible book value per share declined from $22.45 to $18.25 since December 31, 2021.
• Accumulated other comprehensive loss increased by $25.7 million due to rising market interest rates.

WASHINGTON, Pa.--(BUSINESS WIRE)-- 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 third quarter and year-to-date 2022 financial results.

		Three Months Ended																		Nine Months Ended
		9/30/22				6/30/22			3/31/22			12/31/21				9/30/21				9/30/22				9/30/21
(Dollars in thousands, except per share data) (Unaudited)
Net Income (GAAP)		$	3,929			$	118		$	3,047		$	6,965			$	1,983			$	7,094			$	4,605
Non-Recurring Items			(310	)			157			12			(4,122	)			(17	)			(141	)			3,070
Adjusted Net Income (Non-GAAP) (1)		$	3,619			$	275		$	3,059		$	2,843			$	1,966			$	6,953			$	7,675
Earnings per Common Share - Diluted (GAAP)		$	0.77			$	0.02		$	0.58		$	1.31			$	0.37			$	1.37			$	0.85
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)		$	0.71			$	0.05		$	0.59		$	0.53			$	0.36			$	1.35			$	1.42

(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.

2022 Third Quarter Financial Highlights
(Comparisons to three months ended September 30, 2021 unless otherwise noted)

• Net income was $3.9 million, compared to net income of $2.0 million. Current period results were driven by net Interest Margin expansion coupled with a reduction of noninterest expense of $946,000 for the three months ended September 30, 2022 compared to the three months ended September 30, 2021.
  • Adjusted net income (Non-GAAP) was $3.6 million, compared to $2.0 million.
• Earnings per diluted common share (EPS) increased to $0.77 from $0.37.
  • Adjusted earnings per common share - diluted (Non-GAAP) was $0.71, compared to $0.36.
• Return on average assets (annualized) of 1.12%, compared to average assets (annualized) of 0.54%.
  • Adjusted return on average assets (annualized) (Non-GAAP) of 1.03%, compared to 0.53%.
• Return on average equity (annualized) of 13.60%, compared to 5.93% (annualized).
  • Adjusted return on average equity (annualized) (Non-GAAP) of 12.53%, compared to 5.88%.
• Net interest margin (NIM) improved to 3.29% from 2.88%.
• Net interest and dividend income was $11.0 million, compared to $10.0 million.
• Noninterest income increased to $2.7 million, compared to $2.2 million. The most significant changes in noninterest income were a $439,000 gain recognized as a result of the sale of assets of two former branch locations that were part of our consolidation measures and an increase of $174,000 in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received and core business including commercial and personal insurance lines.

(Amounts at September 30, 2022; comparisons to December 31, 2021, unless otherwise noted)

• Total loans, including Payroll Protection Program (“PPP”) loans, were $1.04 billion, an increase of $22.1 million from $1.02 billion.
  • Total loans held for investment, excluding PPP loans, increased $45.9 million, or 6.1% annualized, to $1.04 billion compared to $996.3 million, and included increases of $28.5 million, or 31.1% annualized, in consumer loans, and $40.4 million, or 13.8% annualized, growth in commercial real estate loans, partially offset by decreases of $35.5 million in construction real estate and $26.8 million in commercial and industrial loans. Compared to September 30, 2021, loans held for investment, excluding PPP loans, increased $73.3 million, or 7.6%, primarily from increases of $52.9 million in commercial real estate loans and $38.5 million in consumer loans as noted above, partially offset by decreases of $28.6 million in construction real estate loans and $40.2 million in commercial and industrial loans.
• Nonperforming loans to total loans was 0.56%, a decrease of 15 basis points (“bps”), compared to 0.71%.
• Total deposits were $1.28 billion, an increase of $49.2 million, compared to $1.23 billion.
• Total assets remained level at $1.43 billion.
• Book value per share was $20.94, compared to $22.18 as of June 30, 2022 and $25.31 as of December 31, 2021.
  • Tangible book value per share (Non-GAAP) decreased to $18.25, compared to $19.43 as of June 30, 2022 and $22.45 as of December 31, 2021, reflecting impact to Accumulated Other Comprehensive Income from unrealized losses on securities portfolios.

Management Commentary
President and CEO John H. Montgomery stated, “We delivered solid third quarter results, driven by continued growth in our loan portfolio coupled with expanded margins and expense control. Rising interest rates underpinned a 17 basis point expansion of our net interest margin compared with the second quarter and a 41 basis point improvement from the year-ago quarter. Noninterest expense continued to run at levels well below last year’s amounts due to the optimization efforts we undertook during 2021. As a result, our Adjusted Efficiency Ratio during the third quarter was 63.0%, compared with 77.3% a year ago. While the Federal Reserve has made it clear they will accept a recession in order to control inflation, we continue to believe the southwestern Pennsylvania market in which we operate possesses a variety of demographic attributes that have muted economic volatility in the past. In addition, we have a veteran credit team with successful experience underwriting through the last recession.”

Mr. Montgomery continued, “We remain focused on growing our business and have continued to make targeted additions to our team to do so. During the third quarter we added a business banking team and are also in the process of adding to our commercial banking team. We are very excited to have these new team members come aboard and look forward to their contributions. Continuing our commitment to CB shareholders, we repurchased 30,271 shares during the third quarter under the current $10.0 million share repurchase program announced last quarter, in addition to payment of our regular quarterly dividend of $0.24 per share. We remain well-capitalized with the ability to support growth along with these shareholder-friendly actions.”

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 November 30, 2022, to stockholders of record as of the close of business on November 18, 2022.

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 on October 19, 2022, the repurchase program, if fully completed, would encompass 461,463 shares, or approximately 9.1% of the shares currently outstanding.

2022 Third Quarter Financial Review

Net Interest and Dividend Income
Net interest and dividend income increased $1.0 million, or 10.0%, to $11.0 million for the three months ended September 30, 2022 compared to $10.0 million for the three months ended September 30, 2021.

• Net interest margin (GAAP) increased to 3.29% for the three months ended September 30, 2022 compared to 2.88% for the three months ended September 30, 2021. Fully Tax Equivalent (“FTE”) net interest margin (Non-GAAP) increased 41 bps to 3.30% for the three months ended September 30, 2022 compared to 2.89% for the three months ended September 30, 2021.
• Interest and dividend income increased $1.5 million, or 13.9%, to $12.3 million for the three months ended September 30, 2022 compared to $10.8 million for the three months ended September 30, 2021.
  • Interest income on loans increased $1.1 million, or 11.3%, to $10.8 million for the three months ended September 30, 2022 compared to $9.7 million for the three months ended September 30, 2021. The average balance of loans increased $19.9 million to $1.02 billion from $1.00 billion and the average yield increased 35 bps to 4.20% compared to 3.85%. Interest and fee income on PPP loans was $123,000 for the three months ended September 30, 2022 and contributed 4 bps to loan yield, compared to $484,000 for the three months ended September 30, 2021, which contributed 4 bps to loan yield. The impact of the accretion of the credit mark on acquired loan portfolios was $47,000 for the three months ended September 30, 2022 compared to $94,000 for the three months ended September 30, 2021, or 2 bps in the current period compared to 4 bps in the prior period.
  • Interest income on taxable investment securities increased $142,000, or 16.8%, to $985,000 for the three months ended September 30, 2022 compared to $843,000 for the three months ended September 30, 2021 driven by a $24.3 million increase in average balance partially coupled with a 6 bps increase in average yield.
• Interest expense increased $496,000, or 63.9%, to $1.3 million for the three months ended September 30, 2022 compared to $776,000 for the three months ended September 30, 2021.
  • Interest expense on deposits increased $364,000, or 50.9%, to $1.1 million for the three months ended September 30, 2022 compared to $715,000 for the three months ended September 30, 2021. While average interest-earning deposit balances decreased $51.7 million, or 5.8%, to $842.4 million as of September 30, 2022 compared to $894.0 million as of September 30, 2021 , rising interest rates led to the repricing of higher-cost demand and money market deposits and resulted in a 19 bps, or 59.9%, increase in average cost compared to the three months ended September 30, 2021. In addition, the average balance of time deposits and the related average cost decreased $45.2 million and 11 bps, respectively. These decreases are partially offset by an increase in average other borrowings of $11.6 million or 193.7% to $17.6 million as of September 30, 2022 compared to $6.0 million as of September 30, 2021, which was driven by an increase in subordinated debt balance.

Provision for Loan Losses
There was no provision for loan losses for the three months ended September 30, 2022 or for the three months ended September 30, 2021.

Noninterest income
Noninterest income increased $541,000, or 24.6%, to $2.7 million for the three months ended September 30, 2022, compared to $2.2 million for the three months ended September 30, 2021. The increase was largely due to a gain of $439,000 on the disposal of fixed assets during the three months ended September 30, 2022 due to the sale of the land and buildings of the former Pioneer and Bellaire bank branches. During the quarter, the Bank also recorded a $174,000 increase in insurance commissions. The increase in insurance commissions was primarily driven by contingency income which resulted from the higher than lock-in amounts received and core business including commercial and personal insurance lines. In addition, net gain on sale of loans decreased $49,000 as there were no loans sold during the three months ended September 30, 2022.

Noninterest Expense
Noninterest expense decreased $946,000, or 9.7%, to $8.8 million for the three months ended September 30, 2022 compared to $9.8 million for the three months ended September 30, 2021. Salaries and benefits decreased $48,000 and contracted services decreased $1.2 million to $288,000 for the three months ended September 30, 2022 compared to $1.4 million for the three months ended September 30, 2021. This was a result of branch optimization initiatives completed in the prior year. These decreases were partially offset by an increase in occupancy expenses of $153,000.

Statement of Financial Condition Review

Assets
Total assets increased $441,000, or 0.03%, to $1.43 billion at both September 30, 2022, and December 31, 2021.

• Cash and due from banks increased $3.1 million, or 2.6%, to $122.8 million at September 30, 2022, compared to $119.7 million at December 31, 2021. The change is primarily due to an increase in deposits as further described below in the Liabilities section.
• Securities decreased $31.1 million, or 13.8%, to $193.8 million at September 30, 2022, compared to $225.0 million at December 31, 2021. Current period activity included $26.8 million of purchases, and $24.9 million of pay downs. The purchases were made to earn a higher yield on excess cash. In addition, there was a $32.8 million decrease in the market value of the debt securities portfolio, primarily due to the increase in market interest rates, and a $252,000 decline in market value in the equity securities portfolio, which is primarily comprised of bank stocks.

Payroll Protection Program Update

• PPP loans decreased $23.8 million to $768,000 at September 30, 2022 compared to $24.5 million at December 31, 2021.
• $27,000 of net PPP loan origination fees were unearned at September 30, 2022 compared to $678,000 at December 31, 2021. $117,000 of net PPP loan origination fees were earned in the three months ended September 30, 2022 compared to $130,000 for the three months ended June 30, 2022.

Loans and Credit Quality

• Total loans held for investment increased $22.1 million, or 2.17%, to $1.04 billion at September 30, 2022 compared to $1.02 billion at December 31, 2021. Excluding the net decline of $23.8 million in PPP loans in the current period, loans increased $45.9 million.
• The allowance for loan losses was $12.9 million at September 30, 2022 and $11.6 million at December 31, 2021. As a result, the allowance for loan losses to total loans was 1.23% at September 30, 2022 compared to 1.13% at December 31, 2021. The allowance for loan losses to total loans, excluding PPP loans, was 1.23% at September 30, 2022 compared to 1.16% at December 31, 2021. The change in the allowance for loan losses was primarily due to adjustments to historical loss factors and changes in qualitative factors in particular economic and industry conditions since December 31, 2021.
• Net recoveries for the three months ended September 30, 2022 were $21,000, or 0.01% of average loans on an annualized basis. Net recoveries for the three months ended September 30, 2021 were $37,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the nine months ended September 30, 2022 were $2.5 million, or 0.33% of average loans on an annualized basis. Net recoveries for the nine months ended September 30, 2021 were $10,000, and had an immaterial effect on ratios for the period.
• Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $5.9 million at September 30, 2022 compared to $7.3 million at December 31, 2021. Current nonperforming loans to total loans ratio was 0.56% compared to 0.71% at December 31, 2021.

Other

• Intangible assets decreased $1.3 million, or 24.6%, to $4.0 million at September 30, 2022 compared to $5.3 million at December 31, 2021 due to amortization expense recognized during the period.
• Accrued interest receivable and other assets increased $8.8 million, or 68.4%; to $21.7 million at September 30, 2022, compared to $12.9 million at December 31, 2021. This change was primarily driven by deferred taxes as a result of the increase in market interest rate conditions and the corresponding decrease in the market value of the mostly fixed rate securities portfolio.

Liabilities
Total liabilities increased $26.9 million, or 2.1%, to $1.32 billion at September 30, 2022 compared to $1.29 billion at December 31, 2021.

Deposits

• Total deposits increased $49.2 million to $1.28 billion as of September 30, 2022 compared to $1.23 billion at December 31, 2021, an annualized increase of 5.3%. Interest-bearing and non interest-bearing demand deposits increased $26.2 million and $15.8 million, respectively, partially offset by a decrease in time deposits of $15.8 million. Average total deposits increased $15.4 million, primarily in both interest-bearing and non interest -bearing demand deposits for the three months ended September 30, 2022 compared to the three months ended June 30, 2022,

Borrowed Funds

• Short-term borrowings decreased $21.2 million, or 53.9%, to $18.1 million at September 30, 2022, compared to $39.3 million at December 31, 2021. At September 30, 2022 and December 31, 2021, 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. A portion of this decrease is due to accounts that were being transitioned into other deposit products and account for most of the interest-bearing demand deposit increase.

Stockholders’ Equity
Stockholders’ equity decreased $26.4 million, or 19.8%, to $106.7 million at September 30, 2022, compared to $133.1 million at December 31, 2021. Since December 31, 2021, the Company has paid $3.7 million in dividends. On February 15, 2022, the Company completed its stock repurchase program that was implemented on June 10, 2021. On April 21, 2022, a new $10 million repurchase program was authorized, with the Company repurchasing 57,710 shares at an average price of $22.51 per share since the inception of the plan. In total, the Company has repurchased $4.7 million since December 31, 2021. In addition, accumulated other comprehensive loss increased $25.7 million primarily due to the effect of rising market interest rates on the Bank’s debt securities. This was partially offset by $7.1 million of net income.

Book value per share
Book value per common share was $20.94 at September 30, 2022 compared to $25.31 at December 31, 2021, a decrease of $4.37.

Tangible book value per common share (Non-GAAP) was $18.25 at September 30, 2022, compared to $22.45 at December 31, 2021, a decrease of $4.20.

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		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21
Assets
Cash and Due From Banks		$	122,801			$	81,121			$	123,588			$	119,674			$	173,523
Securities			193,846				213,505				231,097				224,974				221,351
Loans Held for Sale			—				—				—				—				17,407
Loans
Real Estate:
Residential			328,248				325,138				317,254				320,798				317,373
Commercial			432,516				426,105				427,227				392,124				379,621
Construction			49,502				41,277				54,227				85,028				78,075
Commercial and Industrial
Commercial and Industrial			61,428				62,054				59,601				64,487				69,657
PPP			768				3,853				8,242				24,523				32,703
Consumer			150,615				148,921				143,422				122,152				112,087
Other			19,865				20,621				10,669				11,684				12,083
Total Loans			1,042,942				1,027,969				1,020,642				1,020,796				1,001,599
Allowance for Loan Losses			(12,854	)			(12,833	)			(11,595	)			(11,582	)			(11,581	)
Loans, Net			1,030,088				1,015,136				1,009,047				1,009,214				990,018
Premises and Equipment Held for Sale			—				—				—				—				795
Premises and Equipment, Net			18,064				18,196				18,349				18,399				18,502
Bank-Owned Life Insurance			25,750				25,610				25,468				25,332				25,190
Goodwill			9,732				9,732				9,732				9,732				9,732
Intangible Assets, Net			3,959				4,404				4,850				5,295				5,740
Accrued Interest and Other Assets			21,680				18,757				16,539				12,859				12,560
Total Assets		$	1,425,920			$	1,386,461			$	1,438,670			$	1,425,479			$	1,474,818
Liabilities
Deposits Held for Sale		$	—			$	—			$	—			$	—			$	102,647
Deposits
Non-Interest Bearing Demand Deposits			407,107				389,127				400,105				385,775				373,320
Interest Bearing Demand Accounts			298,755				265,347				280,455				272,518				244,004
Money Market Accounts			198,715				185,308				192,929				192,125				190,426
Savings Accounts			250,378				250,226				247,589				239,482				232,679
Time Deposits			120,879				125,182				129,235				136,713				144,727
Total Deposits			1,275,834				1,215,190				1,250,313				1,226,613				1,185,156
Short-Term Borrowings			18,108				32,178				39,219				39,266				42,623
Other Borrowings			17,627				17,618				17,607				17,601				6,000
Accrued Interest Payable and Other Liabilities			7,645				7,703				9,375				8,875				7,405
Total Liabilities			1,319,214				1,272,689				1,316,514				1,292,355				1,343,831
Stockholders’ Equity		$	106,706			$	113,772			$	122,156			$	133,124			$	130,987
Total Liabilities and Stockholders’ Equity		$	1,425,920			$	1,386,461			$	1,438,670			$	1,425,479			$	1,474,818

		Three Months Ended																				Nine Months Ended
Selected Operating Data		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21				9/30/22				9/30/21
Interest and Dividend Income
Loans, Including Fees		$	10,815			$	9,733			$	9,551			$	9,904			$	9,718			$	30,098			$	29,800
Securities:
Taxable			985				988				905				866				843				2,878				2,124
Tax-Exempt			49				57				66				66				71				172				223
Dividends			21				20				22				21				19				64				63
Other Interest and Dividend Income			417				160				72				106				135				649				384
Total Interest and Dividend Income			12,287				10,958				10,616				10,963				10,786				33,861				32,594
Interest Expense
Deposits			1,079				604				530				636				715				2,214				2,489
Short-Term Borrowings			19				18				19				26				25				56				72
Other Borrowings			174				173				174				70				36				522				112
Total Interest Expense			1,272				795				723				732				776				2,792				2,673
Net Interest and Dividend Income			11,015				10,163				9,893				10,231				10,010				31,069				29,921
Provision (Recovery) for Loan Losses			—				3,784				—				75				—				3,784				(1,200	)
Net Interest and Dividend Income After Provision (Recovery) for Loan Losses			11,015				6,379				9,893				10,156				10,010				27,285				31,121
Noninterest Income:
Service Fees			544				559				526				569				602				1,629				1,762
Insurance Commissions			1,368				1,369				1,798				1,618				1,194				4,535				3,998
Other Commissions			244				179				89				90				93				512				431
Net Gain on Sales of Loans			—				—				—				977				49				—				166
Net (Loss) Gain on Securities			(46	)			(199	)			(7	)			44				24				(252	)			482
Net Gain on Purchased Tax Credits			14				14				14				17				18				43				53
Gain on Sale of Branches			—				—				—				5,203				—				—				—
Net Gain (Loss) on Disposal of Fixed Assets			439				—				(8	)			—				—				431				(3	)
Income from Bank-Owned Life Insurance			140				142				136				142				138				418				411
Other Income			36				41				65				29				80				143				291
Total Noninterest Income			2,739				2,105				2,613				8,689				2,198				7,459				7,591
Noninterest Expense:
Salaries and Employee Benefits			4,739				4,539				4,565				5,181				4,787				13,843				14,757
Occupancy			768				776				686				619				615				2,230				2,349
Equipment			170				182				210				252				205				561				782
Data Processing			540				446				485				488				541				1,471				1,666
FDIC Assessment			147				128				209				222				293				484				792
PA Shares Tax			240				240				240				173				224				721				714
Contracted Services			288				348				587				1,133				1,441				1,223				2,878
Legal and Professional Fees			334				389				152				206				180				876				788
Advertising			131				115				116				191				225				362				558
Other Real Estate Owned (Income)			(38	)			(37	)			(38	)			(30	)			(89	)			(113	)			(153	)
Amortization of Intangible Assets			445				446				445				445				446				1,336				1,481
Intangible Assets and Goodwill Impairment			—				—				—				—				—				—				1,178
Writedown of Fixed Assets			—				—				—				23				2				—				2,270
Other			1,063				838				999				1,069				903				2,899				2,830
Total Noninterest Expense			8,827				8,410				8,656				9,972				9,773				25,893				32,890
Income Before Income Tax Expense (Benefit)			4,927				74				3,850				8,873				2,435				8,851				5,822
Income Tax Expense (Benefit)			998				(44	)			803				1,908				452				1,757				1,217
Net Income		$	3,929			$	118			$	3,047			$	6,965			$	1,983			$	7,094			$	4,605

		Three Months Ended															Nine Months Ended
Per Common Share Data		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21			9/30/22			9/30/21
Dividends Per Common Share		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.72		$	0.72
Earnings Per Common Share - Basic			0.77			0.02			0.59			1.32			0.37			1.38			0.85
Earnings Per Common Share - Diluted			0.77			0.02			0.58			1.31			0.37			1.37			0.85
Adjusted Earnings Per Common Share - Diluted (Non-GAAP) (1)			0.71			0.05			0.59			0.53			0.36			1.35			1.42
Weighted Average Common Shares Outstanding - Basic			5,106,861			5,147,846			5,198,194			5,291,795			5,373,032			5,150,632			5,412,989
Weighted Average Common Shares Outstanding - Diluted			5,118,627			5,156,975			5,220,887			5,314,537			5,390,128			5,165,376			5,420,792

		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21
Common Shares Outstanding			5,096,672				5,128,333				5,156,897				5,260,672				5,330,401
Book Value Per Common Share		$	20.94			$	22.18			$	23.69			$	25.31			$	24.57
Tangible Book Value per Common Share (1)			18.25				19.43				20.86				22.45				21.67
Stockholders’ Equity to Assets			7.5	%			8.2	%			8.5	%			9.3	%			8.9	%
Tangible Common Equity to Tangible Assets (1)			6.6				7.3				7.6				8.4				7.9

		Three Months Ended															Nine Months Ended
Selected Financial Ratios (2)		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21			9/30/22			9/30/21
Return on Average Assets		1.12	%		0.03	%		0.87	%		1.87	%		0.54	%		0.68	%		0.42	%
Adjusted Return on Average Assets (1)		1.03			0.08			0.87			0.76			0.53			0.66			0.70
Return on Average Equity		13.60			0.40			9.50			20.95			5.93			7.85			4.59
Adjusted Return on Average Equity (1)		12.53			0.93			9.54			8.55			5.88			7.69			7.65
Average Interest-Earning Assets to Average Interest-Bearing Liabilities		149.41			149.03			144.48			145.09			146.78			147.64			145.56
Average Equity to Average Assets		8.20			8.49			9.14			8.93			9.03			8.61			9.19
Net Interest Rate Spread		3.10			3.00			2.98			2.85			2.77			3.03			2.80
Net Interest Rate Spread (FTE) (1)		3.11			3.01			2.99			2.86			2.78			3.04			2.81
Net Interest Margin		3.29			3.12			3.08			2.95			2.88			3.17			2.92
Net Interest Margin (FTE) (1)		3.30			3.13			3.10			2.96			2.89			3.18			2.93
Net (Recoveries) Charge-offs to Average Loans		(0.01	)		1.01			(0.01	)		0.03			(0.01	)		0.33			—
Efficiency Ratio		64.18			68.55			69.21			52.71			80.05			67.21			87.68
Adjusted Efficiency Ratio (1)		63.02			64.18			65.88			69.73			77.27			64.33			75.92

Asset Quality Ratios		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21
Allowance for Loan Losses to Total Loans		1.23	%		1.25	%		1.14	%		1.13	%		1.16	%
Allowance for Loan Losses to Total Loans, Excluding PPP Loans(1)		1.23			1.25			1.15			1.16			1.20
Allowance for Loan Losses to Nonperforming Loans (3)		218.61			219.89			158.88			159.40			106.18
Allowance for Loan Losses to Noncurrent Loans (4)		318.96			329.47			218.28			233.37			135.37
Delinquent and Nonaccrual Loans to Total Loans (4) (5)		0.46			0.45			0.79			0.78			0.97
Nonperforming Loans to Total Loans (3)		0.56			0.57			0.72			0.71			1.09
Noncurrent Loans to Total Loans (4)		0.39			0.38			0.52			0.49			0.85
Nonperforming Assets to Total Assets (6)		0.41			0.42			0.51			0.51			0.74

Capital Ratios (7)		9/30/22			6/30/22			3/31/22			12/31/21			9/30/21
Common Equity Tier 1 Capital (to Risk Weighted Assets)		12.02	%		11.83	%		11.99	%		11.95	%		11.53	%
Tier 1 Capital (to Risk Weighted Assets)		12.02			11.83			11.99			11.95			11.53
Total Capital (to Risk Weighted Assets)		13.27			13.08			13.20			13.18			12.77
Tier 1 Leverage (to Adjusted Total Assets)		8.51			8.33			8.19			7.76			7.38

(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 nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans.
(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
		September 30, 2022									June 30, 2022									March 31, 2022									December 31, 2021									September 30, 2021
		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)		$	1,024,363		$	10,833		4.20	%		$	1,007,874		$	9,751		3.88	%		$	1,009,210		$	9,573		3.85	%		$	1,004,827		$	9,927		3.92	%		$	1,004,474		$	9,740		3.85	%
Debt Securities
Taxable			222,110			985		1.77				228,315			988		1.73				215,906			905		1.68				205,328			866		1.69				197,763			843		1.71
Exempt From Federal Tax			7,998			62		3.10				9,109			73		3.21				10,195			84		3.30				10,477			84		3.21				11,647			90		3.09
Equity Securities			2,693			21		3.12				2,693			20		2.97				2,693			22		3.27				2,693			21		3.12				2,655			19		2.86
Interest Bearing Deposits at Banks			67,870			378		2.23				56,379			122		0.87				59,296			33		0.22				150,102			61		0.16				160,935			92		0.23
Other Interest-Earning Assets			2,784			39		5.56				3,235			38		4.71				3,483			39		4.54				3,475			45		5.14				3,512			43		4.86
Total Interest-Earning Assets			1,327,818			12,318		3.68				1,307,605			10,992		3.37				1,300,783			10,656		3.32				1,376,902			11,004		3.17				1,380,986			10,827		3.11
Noninterest-Earning Assets			68,796									84,323									122,288									100,607									88,291
Total Assets		$	1,396,614								$	1,391,928								$	1,423,071								$	1,477,509								$	1,469,277
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (3)		$	278,412		$	393		0.56	%		$	260,655		$	111		0.17	%		$	276,603		$	48		0.07			$	278,546		$	51		0.07			$	275,411		$	48		0.07	%
Savings (3)			251,148			20		0.03				248,356			20		0.03				243,786			19		0.03				252,387			20		0.03				251,801			21		0.03
Money Market (3)			189,371			269		0.56				188,804			61		0.13				192,425			41		0.09				209,572			57		0.11				198,167			55		0.11
Time Deposits (3)			123,438			397		1.28				127,832			412		1.29				132,015			422		1.30				154,342			508		1.31				168,654			591		1.39
Total Interest-Bearing Deposits (3)			842,369			1,079		0.51				825,647			604		0.29				844,829			530		0.25				894,847			636		0.28				894,033			715		0.32
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase			28,738			19		0.26				34,135			18		0.21				37,884			19		0.20				44,709			26		0.23				40,818			25		0.24
Other Borrowings			17,621			174		3.92				17,611			173		3.94				17,604			174		4.01				9,474			70		2.93				6,000			36		2.38
Total Interest-Bearing Liabilities			888,728			1,272		0.57				877,393			795		0.36				900,317			723		0.33				949,030			732		0.31				940,851			776		0.33
Noninterest-Bearing Demand Deposits			390,658									391,975									384,188									388,787									387,746
Other Liabilities			2,636									4,415									8,554									7,800									8,019
Total Liabilities			1,282,022									1,273,783									1,293,059									1,345,617									1,336,616
Stockholders' Equity			114,592									118,145									130,012									131,892									132,661
Total Liabilities and Stockholders' Equity		$	1,396,614								$	1,391,928								$	1,423,071								$	1,477,509								$	1,469,277
Net Interest Income (FTE) (Non-GAAP) (4)					$	11,046								$	10,197								$	9,933								$	10,272								$	10,051
Net Interest-Earning Assets (5)			439,090									430,212									400,466									427,872									440,135
Net Interest Rate Spread (FTE) (Non-GAAP) (4) (6)								3.11	%								3.01	%								2.99									2.86									2.78	%
Net Interest Margin (FTE) (Non-GAAP) (4)(7)								3.30									3.13									3.10									2.96									2.89
PPP Loans			2,424			123		20.13				5,546			144		10.41				14,673			445		12.30				29,067			391		5.34				40,313			484		4.76

(1)		Annualized based on three months ended results.
(2)		Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.
(3)		Includes Deposits Held for Sale that were sold in December 2021.
(4)		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.
(5)		Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)		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.
(7)		Net interest margin represents annualized net interest income divided by average total interest-earning assets.

AVERAGE BALANCES AND YIELDS
		Nine Months Ended
		September 30, 2022									September 30, 2021
		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)		$	1,013,871		$	30,157		3.98	%		$	1,017,632		$	29,872		3.92	%
Debt Securities
Taxable			222,132			2,878		1.73				148,718			2,124		1.90
Exempt From Federal Tax			9,093			218		3.20				12,284			282		3.06
Marketable Equity Securities			2,693			64		3.17				2,645			63		3.18
Interest Bearing Deposits at Banks			61,213			534		1.16				187,093			243		0.17
Other Interest-Earning Assets			3,165			115		4.86				3,820			141		4.93
Total Interest-Earning Assets			1,312,167			33,966		3.46				1,372,192			32,725		3.19
Noninterest-Earning Assets			91,607									87,863
Total Assets		$	1,403,774								$	1,460,055
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (3)		$	271,897			554		0.27	%		$	270,136			181		0.09	%
Savings (3)			247,790			58		0.03				246,340			78		0.04
Money Market (3)			190,189			371		0.26				198,408			223		0.15
Time Deposits (3)			127,732			1,231		1.29				177,690			2,007		1.51
Total Interest-Bearing Deposits (3)			837,608			2,214		0.35				892,574			2,489		0.37
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase			33,553			56		0.22				43,745			72		0.22
Other Borrowings			17,612			522		3.96				6,396			112		2.34
Total Interest-Bearing Liabilities			888,773			2,792		0.42				942,715			2,673		0.38
Noninterest-Bearing Demand Deposits			388,964									374,865
Other Liabilities			5,177									8,293
Total Liabilities			1,282,914									1,325,873
Stockholders' Equity			120,860									134,182
Total Liabilities and Stockholders' Equity		$	1,403,774								$	1,460,055
Net Interest Income (FTE) (Non-GAAP) (4)						31,174									30,052
Net Interest-Earning Assets (5)			423,394									429,477
Net Interest Rate Spread (FTE) (Non-GAAP) (4)(6)								3.04	%								2.81	%
Net Interest Margin (FTE) (Non-GAAP) (4)(7)								3.18									2.93
PPP Loans			7,503			712		12.69				51,579			1,797		4.66

(1)		Annualized based on nine months ended results.
(2)		Net of the allowance for loan losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.
(3)		Includes Deposits Held for Sale that were sold in December 2021.
(4)		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.
(5)		Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)		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.
(7)		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																				Nine Months Ended
		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21				9/30/22				9/30/21
(Dollars in thousands, except share and per share data) (Unaudited)
Net Income (GAAP)		$	3,929			$	118			$	3,047			$	6,965			$	1,983			$	7,094			$	4,605
Adjustments
Loss (Gain) on Securities			46				199				7				(44	)			(24	)			252				(482	)
Gain on Sale of Branches			—				—				—				(5,203	)			—				—				—
(Gain) Loss on Disposal of Fixed Assets			(439	)			—				8				—				—				(431	)			3
Tax effect			83				(42	)			(3	)			1,102				5				38				101
Non-Cash Charges:
Intangible Assets and Goodwill Impairment			—				—				—				—				—				—				1,178
Writedown on Fixed Assets			—				—				—				23				2				—				2,270
Tax Effect			—				—				—				—				—								—
Adjusted Net Income (Non-GAAP)		$	3,619			$	275			$	3,059			$	2,843			$	1,966			$	6,953			$	7,675
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding			5,118,627				5,156,975				5,220,887				5,314,537				5,390,128				5,165,376				5,420,792
Earnings per Common Share - Diluted (GAAP)		$	0.77			$	0.02			$	0.58			$	1.31			$	0.37			$	1.37			$	0.85
Adjusted Earnings per Common Share - Diluted (Non-GAAP)		$	0.71			$	0.05			$	0.59			$	0.53			$	0.36			$	1.35			$	1.42
Net Income (GAAP) (Numerator)		$	3,929			$	118			$	3,047			$	6,965			$	1,983			$	7,094			$	4,605
Annualization Factor			3.97				4.01				4.06				3.97				3.97				1.34				1.34
Average Assets (Denominator)			1,396,614				1,391,928				1,423,071				1,477,509				1,469,277				1,403,774				1,460,055
Return on Average Assets (GAAP)			1.12	%			0.03	%			0.87	%			1.87	%			0.54	%			0.68	%			0.42	%
Adjusted Net Income (Non-GAAP) (Numerator)		$	3,619			$	275			$	3,059			$	2,843			$	1,966			$	6,953			$	7,675
Annualization Factor			3.97				4.01				4.06				3.97				3.97				1.34				1.34
Average Assets (Denominator)			1,396,614				1,391,928				1,423,071				1,477,509				1,469,277				1,407,413				1,455,368
Adjusted Return on Average Assets (Non-GAAP)			1.03	%			0.08	%			0.87	%			0.76	%			0.53	%			0.66	%			0.70	%

		Three Months Ended																				Nine Months Ended
		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21				9/30/22				9/30/21
(Dollars in thousands) (Unaudited)
Net Income (GAAP) (Numerator)		$	3,929			$	118			$	3,047			$	6,965			$	1,983			$	7,094			$	4,605
Annualization Factor			3.97				4.01				4.06				3.97				3.97				1.34				1.34
Average Equity (GAAP) (Denominator)			114,592				118,145				130,012				131,892				132,661				120,860				134,182
Return on Average Equity (GAAP)			13.60	%			0.40	%			9.50	%			20.95	%			5.93	%			7.85	%			4.59	%
Adjusted Net Income (Non-GAAP) (Numerator)		$	3,619			$	275			$	3,059			$	2,843			$	1,966			$	6,953			$	7,675
Annualization Factor			3.97				4.01				4.06				3.97				3.97				1.34				1.34
Average Equity (GAAP) (Denominator)			114,592				118,145				130,012				131,892				132,661				120,860				134,182
Adjusted Return on Average Equity (Non-GAAP)			12.53	%			0.93	%			9.54	%			8.55	%			5.88	%			7.69	%			7.65	%

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.

		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21
(Dollars in thousands, except share and per share data) (Unaudited)
Assets (GAAP)		$	1,425,920			$	1,386,461			$	1,438,670			$	1,425,479			$	1,474,818
Goodwill and Intangible Assets, Net			(13,691	)			(14,136	)			(14,582	)			(15,027	)			(15,472	)
Tangible Assets (Non-GAAP) (Numerator)		$	1,412,229			$	1,372,325			$	1,424,088			$	1,410,452			$	1,459,346
Stockholders' Equity (GAAP)		$	106,706			$	113,772			$	122,156			$	133,124			$	130,987
Goodwill and Intangible Assets, Net			(13,691	)			(14,136	)			(14,582	)			(15,027	)			(15,472	)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)		$	93,015			$	99,636			$	107,574			$	118,097			$	115,515
Stockholders’ Equity to Assets (GAAP)			7.5	%			8.2	%			8.5	%			9.3	%			8.9	%
Tangible Common Equity to Tangible Assets (Non-GAAP)			6.6	%			7.3	%			7.6	%			8.4	%			7.9	%
Common Shares Outstanding (Denominator)			5,096,672				5,128,333				5,156,897				5,260,672				5,330,401
Book Value per Common Share (GAAP)		$	20.94			$	22.18			$	23.69			$	25.31			$	24.57
Tangible Book Value per Common Share (Non-GAAP)		$	18.25			$	19.43			$	20.86			$	22.45			$	21.67

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																				Nine Months Ended
		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21				9/30/22				9/30/21
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)		$	12,287			$	10,958			$	10,616			$	10,963			$	10,786			$	33,861			$	32,594
Adjustment to FTE Basis			31				34				40				41				41				105				131
Interest Income (FTE) (Non-GAAP)			12,318				10,992				10,656				11,004				10,827				33,966				32,725
Interest Expense (GAAP)			1,272				795				723				732				776				2,792				2,673
Net Interest Income (FTE) (Non-GAAP)		$	11,046			$	10,197			$	9,933			$	10,272			$	10,051			$	31,174			$	30,052
Net Interest Rate Spread (GAAP)			3.10	%			3.00	%			2.98	%			2.85	%			2.77	%			3.03	%			2.80	%
Adjustment to FTE Basis			0.01				0.01				0.01				0.01				0.01				0.01				0.01
Net Interest Rate Spread (FTE) (Non-GAAP)			3.11				3.01				2.99				2.86				2.78				3.04				2.81
Net Interest Margin (GAAP)			3.29	%			3.12	%			3.08	%			2.95	%			2.88	%			3.17	%			2.92	%
Adjustment to FTE Basis			0.01				0.01				0.02				0.01				0.01				0.01				0.01
Net Interest Margin (FTE) (Non-GAAP)			3.30				3.13				3.10				2.96				2.89				3.18				2.93

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																				Nine Months Ended
		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21				9/30/22				9/30/21
(Dollars in thousands) (Unaudited)
Noninterest Expense (GAAP) (Numerator)		$	8,827			$	8,410			$	8,656			$	9,972			$	9,773			$	25,893			$	32,890
Net Interest and Dividend Income (GAAP)		$	11,015			$	10,163			$	9,893			$	10,231			$	10,010			$	31,069			$	29,921
Noninterest Income (GAAP)			2,739				2,105				2,613				8,689				2,198				7,459				7,591
Operating Revenue (GAAP) (Denominator)		$	13,754			$	12,268			$	12,506			$	18,920			$	12,208			$	38,528			$	37,512
Efficiency Ratio (GAAP)			64.18	%			68.55	%			69.21	%			52.71	%			80.05	%			67.21	%			87.68	%
Noninterest Expense (GAAP)		$	8,827			$	8,410			$	8,656			$	9,972			$	9,773			$	25,893			$	32,890
Less:
Other Real Estate Owned (Income)			(38	)			(37	)			(38	)			(30	)			(89	)			(113	)			(153	)
Amortization of Intangible Assets			445				446				445				445				446				1,336				1,481
Intangible Assets and Goodwill Impairment			—				—				—				—				—				—				1,178
Writedown on Fixed Assets			—				—				—				23				2				—				2,270
Adjusted Noninterest Expense (Non-GAAP) (Numerator)		$	8,420			$	8,001			$	8,249			$	9,534			$	9,414			$	24,670			$	28,114
Net Interest and Dividend Income (GAAP)		$	11,015			$	10,163			$	9,893			$	10,231			$	10,010			$	31,069			$	29,921
Noninterest Income (GAAP)			2,739				2,105				2,613				8,689				2,198				7,459				7,591
Less:
Net (Loss) Gain on Securities			(46	)			(199	)			(7	)			44				24				(252	)			482
Gain on Sale of Branches			—				—				—				5,203				—				—				—
Net Gain (Loss) on Disposal of Fixed Assets			439				—				(8	)			—				—				431				(3	)
Adjusted Noninterest Income (Non-GAAP)		$	2,346			$	2,304			$	2,628			$	3,442			$	2,174			$	7,280			$	7,112
Adjusted Operating Revenue (Non-GAAP) (Denominator)		$	13,361			$	12,467			$	12,521			$	13,673			$	12,184			$	38,349			$	37,033
Adjusted Efficiency Ratio (Non-GAAP)			63.02	%			64.18	%			65.88	%			69.73	%			77.27	%			64.33	%			75.92	%

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.

		9/30/22				6/30/22				3/31/22				12/31/21				9/30/21
(Dollars in thousands) (Unaudited)
Allowance for Loan Losses (Numerator)		$	12,854			$	12,833			$	11,595			$	11,582			$	11,581
Total Loans			1,042,942			$	1,027,969				1,020,642			$	1,020,796			$	1,001,599
PPP Loans			(768	)			(3,853	)			(8,242	)			(24,523	)			(32,703	)
Total Loans, Excluding PPP Loans (Non-GAAP) (Denominator)		$	1,042,174			$	1,024,116			$	1,012,400			$	996,273			$	968,896
Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP)			1.23	%			1.25	%			1.15	%			1.16	%			1.20	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006040/en/

Company:

John H. Montgomery

President and Chief Executive Officer

(724) 225-2400

Investor Relations:

Jeremy Hellman, Vice President

The Equity Group Inc.

(212) 836-9626

jhellman@equityny.com

Source: CB Financial Services, Inc.

FAQ

What were CB Financial Services' earnings for Q3 2022?

CB Financial Services reported a net income of $3.9 million for Q3 2022.

How did the adjusted earnings per share change?

Adjusted earnings per common share increased to $0.71 in Q3 2022 from $0.36 in Q3 2021.

What was the net interest margin for Q3 2022?

The net interest margin for Q3 2022 improved to 3.29%.

Did CB Financial Services declare a dividend for Q3 2022?

Yes, the company declared a dividend of $0.24 per share, payable on November 30, 2022.

What is the total loan amount reported by CB Financial Services?

Total loans increased to $1.04 billion as of September 30, 2022.