CB Financial Services : Announces Second Quarter and Year-to-Date 2021 Financial Results and Declares Quarterly Cash Dividend (Form 8-K)
July 29, 2021 at 09:20 am EDT
Share
Announces Second Quarter and Year-to-Date 2021 Financial Results and
Declares Quarterly Cash Dividend
WASHINGTON, PA., July 29, 2021 -- 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
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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.
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◦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.
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•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
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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.
Company Contact:
John H. Montgomery
President and Chief Executive Officer
Phone: (724) 225-2400
Investor Relations:
Adam Prior, Senior Vice President
The Equity Group Inc.
Phone: (212) 836-9606
Email: aprior@equityny.com
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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
6
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
7
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.
8
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
9
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
10
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
%
11
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
12
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
%
13
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
%
14
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CB Financial Services Inc. published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 13:18:27 UTC.
CB Financial Services, Inc. is the bank holding company. The Company conducts its operations primarily through its wholly owned subsidiary, Community Bank (the Bank). The Bank offers range of residential and commercial real estate loans, commercial and industrial loans, and consumer loans and deposit products for individuals and businesses in its market area. The Company's principal lending activity has been the origination in its local market area of residential one- to four-family, commercial real estate, construction, and others. Its residential real estate loans are comprised of loans secured by one- to four-family residential properties. It provides loans to individuals to finance the construction of residential dwellings, construction of commercial properties, including hotels, and apartment buildings. Its investment portfolio includes United States Government Agency Securities, Obligations of States and Political Subdivisions, Mortgage-Backed Securities, and Corporate Debt.