WASHINGTON, Pa.--(BUSINESS WIRE)--CB Financial Services, Inc. (\u201cCB\u201d or the \u201cCompany\u201d) (NASDAQGM: CBFV), the holding company of Community Bank (the \u201cBank\u201d), today announced its second quarter and year-to-date 2026 financial results.<\/p>
\n\u00a0<\/p><\/td> | \nThree Months Ended<\/b><\/p><\/td> | \n\u00a0<\/p><\/td> | \nSix Months Ended<\/b><\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n6\/30\/26<\/b><\/p><\/td> \n3\/31\/26<\/b><\/p><\/td> \n12\/31\/25<\/b><\/p><\/td> \n9\/30\/25<\/b><\/p><\/td> \n6\/30\/25<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n6\/30\/26<\/b><\/p><\/td> \n6\/30\/25<\/b><\/p><\/td><\/tr>\n \n(Dollars in thousands, except per share data) (Unaudited)<\/i><\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nNet Income (Loss) (GAAP)<\/p><\/td> \n$<\/p><\/td> \n4,301<\/p><\/td> \n$<\/p><\/td> \n3,867<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,742<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n(5,696<\/p><\/td> \n)<\/p><\/td> \n$<\/p><\/td> \n3,949<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n8,168<\/p><\/td> \n$<\/p><\/td> \n5,858<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nNet Income Adjustments<\/p><\/td> \n\u00a0<\/p><\/td> \n14<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n(13<\/p><\/td> \n)<\/p><\/td> \n\u00a0<\/p><\/td> \n(943<\/p><\/td> \n)<\/p><\/td> \n\u00a0<\/p><\/td> \n9,623<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u2014<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n1<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n808<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAdjusted Net Income (Non-GAAP) (1)<\/sup><\/p><\/td> \n$<\/p><\/td> \n4,315<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n3,854<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n3,799<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n3,927<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n3,949<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n8,169<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n6,666<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nEarnings (Loss) per Common Share - Diluted (GAAP)<\/p><\/td> \n$<\/p><\/td> \n0.80<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.73<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.89<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n(1.07<\/p><\/td> \n)<\/p><\/td> \n$<\/p><\/td> \n0.74<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1.54<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1.09<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAdjusted Earnings per Common Share - Diluted (Non-GAAP) (1)<\/sup><\/p><\/td> \n$<\/p><\/td> \n0.81<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.72<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.72<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.74<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.74<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1.54<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1.24<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nIncome (Loss) Before Income Tax Expense (GAAP)<\/p><\/td> \n$<\/p><\/td> \n5,099<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,581<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n5,270<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n(7,020<\/p><\/td> \n)<\/p><\/td> \n$<\/p><\/td> \n4,715<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n9,680<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n7,051<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nNet Provision (Recovery) for Credit Losses<\/p><\/td> \n\u00a0<\/p><\/td> \n17<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n241<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n362<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n259<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n8<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n259<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n(32<\/p><\/td> \n)<\/p><\/td><\/tr>\n \nPre-Provision Net Revenue (\u201cPPNR\u201d)<\/p><\/td> \n$<\/p><\/td> \n5,116<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,822<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n5,632<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n(6,761<\/p><\/td> \n)<\/p><\/td> \n$<\/p><\/td> \n4,723<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n9,939<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n7,019<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nNet Income Adjustments<\/p><\/td> \n\u00a0<\/p><\/td> \n18<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n(16<\/p><\/td> \n)<\/p><\/td> \n\u00a0<\/p><\/td> \n(765<\/p><\/td> \n)<\/p><\/td> \n\u00a0<\/p><\/td> \n11,752<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u2014<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n2<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n1,023<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAdjusted PPNR (Non-GAAP) (1)<\/sup><\/p><\/td> \n$<\/p><\/td> \n5,134<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,806<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,867<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,991<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n4,723<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n9,941<\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n8,042<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n<\/table> \n(1)<\/p><\/td> \nRefer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release.<\/p><\/td><\/tr>\n<\/table> \n2026 Second Quarter Financial Highlights<\/span><\/b><\/p> \nManagement Commentary<\/span><\/b><\/p> \nPresident and CEO John H. Montgomery commented, \u201cOur team\u2019s disciplined execution and well-grounded strategy came through clearly in our second quarter performance, driving substantive progress towards the Company\u2019s financial goals. Net interest income grew during the quarter, even as net interest margin declined due to elevated cash balances and slightly higher deposit costs. This growth was supported by a $69.5 million increase in organic deposits during the quarter, reflecting the continued strength of our core deposit franchise. Earning asset yields remained resilient, continuing to benefit from the balance sheet restructuring executed in the third quarter last year, which helps insulates the portfolio against rate-related repricing pressure. We remain focused on positioning our balance sheet to protect our financial foundation and support substantial earnings growth over time.<\/p> \nAmid ongoing economic volatility, we continue to prioritize prudent financial discipline, maintain a resilient balance sheet, and consistently adhere to the credit quality standards our shareholders rely on. Total loans increased by $17.5 million, or 1.5%, during the first half of 2026, with increases in commercial real estate and construction loans countering the decreases in consumer and residential real estate loans. Our asset quality continues to be strong, with nonperforming loans representing 0.29% of total loans and the allowance for credit losses covering 308.5% of nonperforming assets at quarter-end. We continue to have strong conviction in the fundamental soundness of our loan portfolio and our capacity to manage risk prudently amid continued expansion.<\/p> \nThe second quarter marked a key milestone as our Specialty Treasury Payments & Services program officially reached full operational capacity, a testament to the disciplined execution behind this pillar of our long-term growth strategy. With the platform now fully up and running and the initial customer onboarding behind us, we are already seeing it strengthen our core deposit base and open new avenues for sustainable revenue, with $84.1 million in new deposits since year-end. We remain confident in this program\u2019s ability to enhance the Company\u2019s efficiency, scalability, and earnings power over time. As the bulk of new relationships come fully onto the platform, we are encouraged by the strength of the pipeline and the quality of engagement we are seeing across our customer base.<\/p> \nAs part of our broader growth strategy, we are expanding our capabilities in mortgage lending, an effort that deepens customer relationships, diversifies our revenue base, and unlocks cross-selling opportunities across our primary market. Because it\u2019s grounded in our relationship-banking model, this work also reinforces our larger lending and deposit growth goals. Even as we explore new growth opportunities, our dedication to the local customers and communities we serve hasn\u2019t wavered\u2014 they remain the cornerstone of our business, and the driving force behind every decision we make.\u201d<\/p> \nDividend Declaration<\/span><\/b><\/p> \nThe Company\u2019s Board of Directors declared a $0.28 quarterly cash dividend per outstanding share of common stock, payable on or about August 28, 2026, to stockholders of record as of the close of business on August 14, 2026.<\/p> \n2026 Second Quarter Financial Review<\/span><\/b><\/p> \nNet Interest and Dividend Income<\/span><\/i><\/p> \nNet interest and dividend income increased $2.0 million, or 15.9%, to $14.5 million for the three months ended June 30, 2026 compared to $12.5 million for the three months ended June 30, 2025.<\/p> \nProvision for Credit Losses<\/span><\/i><\/p> \nA provision for credit losses of $17,000 was recorded for the three months ended June 30, 2026. The provision for credit losses on loans was $157,000 and was primarily due to loan growth. This was partially offset by a $140,000 reversal of provision for credit losses on unfunded commitments primarily due to a decrease in unfunded commitments. This compared to a provision for credit losses of $8,000 recorded for the three months ended June 30, 2025 as the provision for credit losses on loans was a $136,000 recovery primarily due to a reduction of reserves required for individually assessed loans and changes in loan concentrations, partially offset by additional reserve required for overall loan growth and a change in qualitative factors relating to economic conditions, and the provision for credit losses on unfunded commitments was $144,000 due to an increase in unfunded commitments and an increase in funding rates.<\/p> \nNoninterest Income<\/span><\/i><\/p> \nNoninterest income increased $41,000, or 4.4%, to $972,000 for the three months ended June 30, 2026, compared to $931,000 for the three months ended June 30, 2025 primarily due to a $23,000 increase in service fees related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts and a $19,000 increase in net gain on sale of loans.<\/p> \nNoninterest Expense<\/span><\/i><\/p> \nNoninterest expense increased $1.6 million, or 18.8%, to $10.4 million for the three months ended June 30, 2026 compared to $8.7 million for the three months ended June 30, 2025. Salaries and benefits increased $1.0 million primarily due to revenue producing treasury and commercial banking personnel additions, merit increases and higher benefit compensation costs. Data processing expense increased $379,000 due to the implementation of enhanced treasury and commercial banking platforms in late 2025 and early 2026. Pennsylvania shares tax increased $124,000 due to $179,000 of refunds received in 2025 on amended returns filed for prior years. Professional fees increased $81,000 due to the timing of internal audit services and higher legal fees associated with treasury services. Contracted services increased $54,000 due to outsourced information security services.<\/p> \nStatement of Financial Condition Review<\/span><\/b><\/p> \nAssets<\/span><\/i><\/b><\/p> \nTotal assets increased $108.7 million, or 7.0%, to $1.66 billion at June 30, 2026, compared to $1.55 billion at December 31, 2025.<\/p> \nLoans and Credit Quality<\/span><\/i><\/p> \nLiabilities<\/span><\/i><\/b><\/p> \nTotal liabilities increased $104.2 million, or 7.5%, to $1.49 billion at June 30, 2026 compared to $1.39 billion at December 31, 2025.<\/p> \nDeposits<\/span><\/i><\/p> \nBorrowed Funds<\/span><\/i><\/p> |