Fri, May 9, 5:41 PM (3 days ago)
**CB Financial Services, Inc. (CBFV) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** Total interest and dividend income decreased by 0.8% to $17.8 million, driven by a 2.1% decrease in loan interest income due to lower average loan balances. - **Profit Margins:** Net interest margin (GAAP) decreased to 3.27% from 3.36% year-over-year. Noninterest income dropped by 58.9% to $787,000, primarily due to the absence of gains from bank-owned life insurance and the disposal of premises and equipment. - **Cash Flow:** Net cash provided by operating activities increased by 23.6% to $4.03 million, driven by higher net income and adjustments for non-cash items. - **Earnings Changes:** Net income decreased by 55.5% to $1.9 million, primarily due to lower noninterest income and higher noninterest expenses. **Quarterly Performance Discussion:** - **Assets:** Total assets increased by 0.1% to $1.483 billion. Cash and due from banks rose by 23.6% to $61.3 million, while securities decreased by 1.3% to $258.7 million. - **Liabilities:** Total liabilities increased by 0.1% to $1.34 billion. Deposits decreased by 0.2% to $1.281 billion, with a favorable shift in deposit mix towards core banking relationships. - **Stockholders' Equity:** Increased by 0.6% to $148.3 million, driven by net income and a decrease in accumulated other comprehensive loss, partially offset by treasury stock purchases and dividends. **Trends and Uncertainties:** - **Loan Portfolio:** Total loans decreased by 0.4% to $1.088 billion, with a reduction in consumer loans due to the discontinuation of indirect automobile loan production. Nonperforming loans increased to $2.4 million, primarily due to a residential real estate loan moving to nonaccrual status. - **Credit Quality:** The allowance for credit losses remained stable at 0.90% of total loans. Net charge-offs were $54,000, or 0.02% of average loans on an annualized basis. - **Interest Rate Risk:** The Company manages interest rate risk through an Asset/Liability Management Committee, focusing on reducing exposure to changes in market interest rates. **Future Operations Impact:** - **Liquidity:** The Company maintains sufficient liquidity with $61.3 million in cash and due from banks and $95.6 million in unpledged securities. It has access to additional borrowing facilities. - **Capital Management:** The Bank remains "well capitalized" under regulatory standards, with strong capital ratios exceeding the required minimums. **Conclusion:** CB Financial Services, Inc. faced challenges in Q1 2025 with decreased net income and noninterest income. However, the Company maintained strong liquidity and capital positions, managed interest rate risk effectively, and continues to focus on core banking relationships and strategic loan portfolio management.