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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2023
CB FINANCIAL SERVICES, INC.
(Exact name of registrant as specified in its charter)

Commission file number: 001-36706

Pennsylvania51-0534721
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

100 N. Market Street, Carmichaels, PA
15320
(Address of principal executive offices)(Zip Code)

(724) 966-5041
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:

Common stock, par value $0.4167 per shareCBFVThe Nasdaq Stock Market, LLC
(Title of each class)(Trading symbol)(Name of each exchange on which registered)


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the
Exchange Act.  ☐



Item 2.02. Results of Operations and Financial Condition.
On October 27, 2023, CB Financial Services, Inc. (the "Company") issued a press release announcing its financial results for the three and nine months ended September 30, 2023, a copy of which is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 8.01. Other Events.
On October 27, 2023, the Company announced that its Board of Directors declared a cash dividend on the Company's outstanding shares of common stock. The dividend of $0.25 per share will be paid on or about November 30, 2023 to stockholders of record as of the close of business on November 15, 2023.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
104. Cover Page Interactive Data File (embedded in Inline XBRL)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 CB FINANCIAL SERVICES, INC.
   
   
Date: October 27, 2023
By: /s/ Jamie L. Prah
  Jamie L. Prah
  Executive Vice President and Chief Financial Officer

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EXHIBIT 99.1
cbfinancialservicesa.jpg

CB Financial Services, Inc.
Announces Third Quarter and Year-to-Date 2023 Financial Results and
Declares Quarterly Cash Dividend

WASHINGTON, PA., October 27, 2023 -- 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 2023 financial results.

2023 Third Quarter Financial Highlights
(Comparisons to three months ended September 30, 2022 unless otherwise noted)
•Net income was $2.7 million, compared to $3.9 million. Current period results were negatively impacted by net interest margin (NIM) compression coupled with increases in the provision for credit losses and noninterest expense and a decrease in noninterest income, partially offset by a decrease in income tax expense.
◦Income before income tax expense was $3.2 million compared to $4.9 million.
◦Pre-provision net revenue (PPNR) (non-GAAP) was $3.5 million compared to $4.9 million.
•Earnings per diluted common share (EPS) decreased to $0.52 from $0.77.
•Return on average assets (annualized) was 0.75%, compared to 1.12%.
•Return on average equity (annualized) was 9.03%, compared to 13.60%.
•NIM declined to 3.13% from 3.29%.
•Net interest and dividend income was $10.7 million, compared to $11.0 million.
•Noninterest income decreased to $2.4 million, compared to $2.7 million. Prior period noninterest income included a $439,000 gain recognized as a result of the sale of assets of two closed branch locations.
•Noninterest expense increased to $9.5 million, compared to $8.8 million, primarily due to increases in compensation and benefits, equipment and data processing costs.

(Amounts at September 30, 2023; comparisons to December 31, 2022, unless otherwise noted)
•Total assets decreased to $1.40 billion from $1.41 billion.
•Total loans increased $52.6 million, or 5.0%, to $1.10 billion compared to $1.05 billion, and included increases of $30.8 million, or 44.0%, in commercial and industrial loans, $30.1 million, or 6.9%, in commercial real estate loans, and $15.8 million, or 4.8%, in residential mortgage loans, partially offset by a decrease of $24.4 million, or 16.6%, in consumer loans, which is primarily comprised of indirect automobile loans.
•Nonperforming loans to total loans was 0.30%, a decrease of 25 basis points (“bps”), compared to 0.55%.
•Total deposits were $1.24 billion, a decrease of $32.2 million, compared to $1.27 billion.
•Book value per share was $22.43, compared to $22.81 as of June 30, 2023 and $21.60 as of December 31, 2022.
•Tangible book value per share (Non-GAAP) was $20.10, compared to $20.39 as of June 30, 2023 and $19.00 as of December 31, 2022. The year-to-date change was due to an increase in stockholders’ equity primarily related to current period net income of $9.6 million and a $2.1 million positive adjustment due to the Company’s January 1, 2023 adoption of CECL, partially offset by current period dividends paid to stockholders of $3.8 million.

Management Commentary
President and CEO John H. Montgomery stated, “Our third quarter results, while impacted by pressures on funding costs, continue to support our model of investing in our franchise and focusing on delivering an exceptional client experience.

As we have noted for several quarters, the net interest margin compression continues as our customers respond to the overall increase in market interest rates, while being partially offset by the gradual and increasing shift in our asset base from consumer loans into higher yielding commercial and industrial loans and commercial real estate loans. We continued to make investments in our team, resulting in substantial loan growth and onboarding of new relationships. We firmly believe that the challenges of the economic environment provide an opportunity for quality relationship growth, increasing our long term franchise value and benefiting all of our stakeholders. In addition to our loan growth, our asset quality remains strong with nonperforming assets to total assets decreasing from the previous quarter.

During the quarter, significant progress was made on a number of strategic initiatives, including investing in technology and refreshing our branch network, creating the physical environment for technology and our team members to work cohesively in
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serving our customers. Additionally, we also declared and paid a $0.25 cash dividend during the quarter, continuing our commitment to our shareholders.”

Mr. Montgomery concluded, “As I have noted previously, we remain focused on maintaining solid capital and liquidity positions as we continue to navigate the challenging economic environment and position ourselves for the future.”

Dividend Information
The Company’s Board of Directors declared a $0.25 quarterly cash dividend per outstanding share of common stock, payable on or about November 30, 2023, to stockholders of record as of the close of business on November 15, 2023.

2023 Third Quarter Financial Review

Net Interest and Dividend Income
Net interest and dividend income decreased $298,000, or 2.7%, to $10.7 million for the three months ended September 30, 2023 compared to $11.0 million for the three months ended September 30, 2022.
•Net interest margin (GAAP) decreased to 3.13% for the three months ended September 30, 2023 compared to 3.29% for the three months ended September 30, 2022. Fully tax equivalent (FTE) net interest margin (Non-GAAP) decreased 16 bps to 3.14% for the three months ended September 30, 2023 compared to 3.30% for the three months ended September 30, 2022.
•Interest and dividend income increased $3.6 million, or 29.2%, to $15.9 million for the three months ended September 30, 2023 compared to $12.3 million for the three months ended September 30, 2022.
◦Interest income on loans increased $3.2 million, or 29.9%, to $14.0 million for the three months ended September 30, 2023 compared to $10.8 million for the three months ended September 30, 2022. The average balance of loans increased $64.3 million to $1.09 billion from $1.02 billion, generating $729,000 of additional interest income on loans. The average yield increased 93 bps to 5.13% compared to 4.20% resulting in a $2.5 million increase in interest income on loans.
◦Interest income on interest-earning deposits at other banks increased $372,000, to $750,000 for the three months ended September 30, 2023 compared to $378,000 for the three months ended September 30, 2022 as the average yield increased 347 bps, partially offset by a $15.2 million decrease in average balances. The increase in the average yield was the result of the Federal Reserve Board’s interest rate increases.
•Interest expense increased $3.9 million, or 305.4%, to $5.2 million for the three months ended September 30, 2023 compared to $1.3 million for the three months ended September 30, 2022.
◦Interest expense on deposits increased $3.7 million, or 340.2%, to $4.8 million for the three months ended September 30, 2023 compared to $1.1 million for the three months ended September 30, 2022. Rising market interest rates led to the repricing of interest-bearing demand and money market deposits and a shift in deposits from noninterest-bearing to interest-bearing demand and time deposits resulted in a 150 bps, or 295.2%, increase in the average cost of interest-bearing deposits compared to the three months ended September 30, 2022. This accounted for a $3.5 million increase in interest expense. Additionally, interest-bearing deposit balances increased $95.4 million, or 11.3%, to $937.8 million as of September 30, 2023 compared to $842.4 million as of September 30, 2022, accounting for a $138,000 increase in interest expense.
Provision for Credit Losses
Effective January 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The provision for credit losses recorded for the three months ended September 30, 2023 was $406,000 and was required primarily due to changes in qualitative factors coupled with a modeled slowdown in loan prepayment speeds. This compared to no provision for credit losses recorded for the three months ended September 30, 2022.

Noninterest Income
Noninterest income decreased $327,000, or 11.9%, to $2.4 million for the three months ended September 30, 2023, compared to $2.7 million for the three months ended September 30, 2022. This decrease was primarily related to a $439,000 decrease in net gain on disposal of fixed assets as the prior period included a $439,000 gain resulting from the sale of assets of two closed branch locations.

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Noninterest Expense
Noninterest expense increased $660,000, or 7.5%, to $9.5 million for the three months ended September 30, 2023 compared to $8.8 million for the three months ended September 30, 2022. Salaries and benefits increased $630,000, or 13.3%, to $5.4 million primarily due to merit increases and revenue producing staff additions. Data processing expense increased $174,000, or 32.2%, to $714,000, due to increased ongoing costs related to the fourth quarter 2022 core conversion and equipment expense increased $95,000 or 55.9%, to $265,000, due to costs associated with the implementation and operation of new interactive teller machines.

Statement of Financial Condition Review

Assets
Total assets decreased $9.4 million, or 0.7%, to $1.40 billion at September 30, 2023, compared to $1.41 billion at December 31, 2022.
•Cash and due from banks decreased $51.1 million, or 49.3%, to $52.6 million at September 30, 2023, compared to $103.7 million at December 31, 2022, due to significant loan growth.
•Securities decreased $17.2 million, or 9.0%, to $172.9 million at September 30, 2023, compared to $190.1 million at December 31, 2022. The securities balance was primarily impacted by $12.4 million of repayments on mortgage-backed and collateralized mortgage obligation securities and a $369,000 decrease in the market value in the equity securities portfolio, which is primarily comprised of bank stocks.
Loans and Credit Quality
•Total loans increased $52.6 million, or 5.0%, to $1.10 billion at September 30, 2023 compared to $1.05 billion at December 31, 2022. Loan growth was driven by increases in commercial and industrial loans, commercial real estate loans and residential mortgage loans of $30.8 million, $30.1 million, and $15.8 million, respectively, partially offset by a decrease in consumer loans of $24.4 million. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to rising market interest rates and the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products.
•The allowance for credit losses (ACL) was $10.8 million at September 30, 2023 and $12.8 million at December 31, 2022. As a result, the ACL to total loans was 0.98% at September 30, 2023 compared to 1.22% at December 31, 2022. The change in the ACL was primarily due to the Company's aforementioned adoption of CECL. At adoption, the Company decreased its ACL by $3.4 million. Contributing to the change in ACL was a prior year charge-off of $2.7 million and qualitative factors that significantly impacted the incurred loss model driven by historical activity compared to the adopted CECL methodology that is centered around CECL activity using a forecast approach.
•Net charge-offs for the three months ended September 30, 2023 were $109,000, or 0.04% of average loans on an annualized basis. 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 nine months ended September 30, 2023 were $551,000 primarily due to recoveries totaling $750,000 related to the prior year $2.7 million charged-off commercial and industrial loan. Net charge-offs for the nine months ended September 30, 2022 were $2.5 million.
•Nonperforming loans, which includes nonaccrual loans and accruing loans past due 90 days or more, were $3.3 million at September 30, 2023 compared to $5.8 million at December 31, 2022. The decrease of $2.5 million was due to ten loans totaling $1.7 million transferred from nonaccrual to accrual status during the current period and the repayment of a $1.6 million commercial real estate loan that was previously on nonaccrual status. Partially offsetting these favorable movements, a $757,000 commercial real estate loan moved to nonaccrual status during the period. Nonperforming loans to total loans ratio was 0.30% at September 30, 2023 compared to 0.55% at December 31, 2022.
Other
•Intangible assets decreased $1.3 million, or 37.0%, to $2.2 million at September 30, 2023 compared to $3.5 million at December 31, 2022 due to amortization expense recognized during the period.
•Accrued interest and other assets increased $5.5 million or 26.0%, to $26.7 million at September 30, 2023, compared to $21.1 million at December 31, 2022 due to the sale of a $2.0 million syndicated loan which was sold but not yet settled at September 30, 2023, and increases in prepaid expenses and accrued interest receivable of $1.2 million and $600,000.

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Total liabilities decreased $14.1 million, or 1.1%, to $1.28 billion at September 30, 2023 compared to $1.30 billion at December 31, 2022.
Deposits
•Total deposits decreased $32.2 million to $1.24 billion as of September 30, 2023 compared to $1.27 billion at December 31, 2022. Interest-bearing demand deposits increased $45.6 million and time deposits increased $68.3 million, while non interest-bearing demand deposits decreased $85.3 million, savings deposits decreased $40.9 million, and money market deposits decreased $19.9 million. The increase in interest-bearing demand deposits was primarily the result of higher interest rates attracting more customers and additional deposits from existing customers while higher time deposits resulted from the offering of a higher-rate certificate of deposit product. FDIC insured deposits totaled approximately 60.5% of total deposits while an additional 16.9% of deposits were collateralized with investment securities.
Borrowed Funds
•Long-term borrowings increased $20.0 million, or 136.6%, to $34.7 million at September 30, 2023, compared to $14.6 million at December 31, 2022. During the second quarter, the Bank entered into $20.0 million of FHLB advances for a term of 24 months at 4.92%, the proceeds of which were utilized to match fund originations within the Bank’s commercial and industrial loan portfolio.
•Short-term borrowings decreased $8.1 million, or 100.0%, as there were no short-term borrowings at September 30, 2023, compared to $8.1 million at December 31, 2022. At December 31, 2022, short-term borrowings were comprised entirely of securities sold under agreements to repurchase. These accounts were transitioned into other deposit products and account for a portion of the interest-bearing demand deposit increase.
Accrued Interest Payable and Other Liabilities
•Accrued interest payable and other liabilities increased $6.1 million, or 80.5%, to $13.7 million at September 30, 2023, compared to $7.6 million at December 31, 2022 primarily due to the purchase of $3.9 million of syndicated loans which were unfunded at the end of the period and a $1.1 million increase in accrued interest payable on certificate accounts.

Stockholders’ Equity
Stockholders’ equity increased $4.7 million, or 4.3%, to $114.8 million at September 30, 2023, compared to $110.2 million at December 31, 2022. Key factors positively impacting stockholders’ equity included $9.6 million of net income for the current period and a $2.1 million positive adjustment, net of tax, due to the Company’s January 1, 2023 adoption of CECL as described above. These factors were partially offset by the payment of $3.8 million in dividends since December 31, 2022 and activity under share repurchase programs. On April 21, 2022, a $10.0 million repurchase program was authorized, with the Company repurchasing 74,656 shares at an average price of $22.38 per share since the inception of the program. In total, the Company repurchased $274,000 of common stock since December 31, 2022. The program expired on May 1, 2023.
Book value per share
Book value per common share was $22.43 at September 30, 2023 compared to $21.60 at December 31, 2022, an increase of $0.83.

Tangible book value per common share (Non-GAAP) was $20.10 at September 30, 2023, compared to $19.00 at December 31, 2022, an increase of $1.10.

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.


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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, 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



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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 Data9/30/236/30/233/31/2312/31/229/30/22
Assets
Cash and Due From Banks$52,597 $78,093 $103,545 $103,700 $122,801 
Securities172,904 181,427 189,025 190,058 193,846 
Loans 
Real Estate: 
Residential346,485 338,493 332,840 330,725 328,248 
Commercial466,910 458,614 452,770 436,805 432,516 
Construction41,874 44,523 39,522 44,923 49,502 
Commercial and Industrial:
Commercial and Industrial100,852 102,232 79,436 69,918 61,428 
PPP21 34 65 126 768 
Consumer122,516 134,788 146,081 146,927 150,615 
Other23,856 22,470 21,151 20,449 19,865 
Total Loans1,102,514 1,101,154 1,071,865 1,049,873 1,042,942 
Allowance for Credit Losses(10,848)(10,666)(10,270)(12,819)(12,854)
Loans, Net1,091,666 1,090,488 1,061,595 1,037,054 1,030,088 
Premises and Equipment, Net18,524 18,582 17,732 17,844 18,064 
Bank-Owned Life Insurance25,227 25,082 24,943 25,893 25,750 
Goodwill9,732 9,732 9,732 9,732 9,732 
Intangible Assets, Net2,177 2,622 3,068 3,513 3,959 
Accrued Interest Receivable and Other Assets26,665 26,707 21,068 21,144 21,680 
Total Assets$1,399,492 $1,432,733 $1,430,708 $1,408,938 $1,425,920 
Liabilities
Deposits
Noninterest-Bearing Demand Accounts$305,145 $316,098 $350,911 $390,405 $407,107 
Interest-Bearing Demand Accounts357,381 374,654 359,051 311,825 298,755 
Money Market Accounts189,187 185,814 206,174 209,125 198,715 
Savings Accounts207,148 217,267 234,935 248,022 250,378 
Time Deposits177,428 169,482 130,449 109,126 120,879 
Total Deposits1,236,289 1,263,315 1,281,520 1,268,503 1,275,834 
Short-Term Borrowings— — 121 8,060 18,108 
Other Borrowings34,668 34,658 14,648 14,638 17,627 
Accrued Interest Payable and Other Liabilities13,689 18,171 17,224 7,582 7,645 
Total Liabilities1,284,646 1,316,144 1,313,513 1,298,783 1,319,214 
Stockholders’ Equity114,846 116,589 117,195 110,155 106,706 
Total Liabilities and Stockholders’ Equity$1,399,492 $1,432,733 $1,430,708 $1,408,938 $1,425,920 
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(Dollars in thousands, except share and per share data) (Unaudited)
 Three Months EndedNine Months Ended
Selected Operating Data9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Interest and Dividend Income:
Loans, Including Fees$14,049 $13,426 $12,371 $11,835 $10,815 $39,846 $30,098 
Securities:
Taxable940 950 964 974 985 2,853 2,878 
Tax-Exempt41 42 41 40 49 124 172 
Dividends25 25 24 28 21 74 64 
Other Interest and Dividend Income819 760 844 978 417 2,424 649 
Total Interest and Dividend Income15,874 15,203 14,244 13,855 12,287 45,321 33,861 
Interest Expense:
Deposits4,750 3,842 2,504 1,811 1,079 11,097 2,214 
Short-Term Borrowings— 3 2 7 19 5 56 
Other Borrowings407 238 155 171 174 800 522 
Total Interest Expense5,157 4,083 2,661 1,989 1,272 11,902 2,792 
Net Interest and Dividend Income10,717 11,120 11,583 11,866 11,015 33,419 31,069 
Provision for Credit Losses - Loans291 492 80 — — 863 3,784 
Provision (Recovery) for Credit Losses - Unfunded Commitments115 (60)— — — 54 — 
Net Interest and Dividend Income After Provision for Credit Losses10,311 10,688 11,503 11,866 11,015 32,502 27,285 
Noninterest Income:
Service Fees466 448 445 530 544 1,359 1,629 
Insurance Commissions1,436 1,511 1,922 1,399 1,368 4,870 4,535 
Other Commissions94 224 144 157 244 462 512 
Net (Loss) Gain on Sales of Loans— (5)2 — — (3)— 
Net (Loss) Gain on Securities(37)(100)(232)83 (46)(369)(252)
Net Gain on Purchased Tax Credits7 7 7 14 14 22 43 
    Net Gain on Disposal of Fixed Assets— — 11 — 439 11 431 
Income from Bank-Owned Life Insurance145 139 140 143 140 425 418 
Net Gain on Bank-Owned Life Insurance Claims— 1 302 — — 303 — 
Other Income301 44 69 34 36 413 143 
Total Noninterest Income2,412 2,269 2,810 2,360 2,739 7,493 7,459 
Noninterest Expense:
Salaries and Employee Benefits5,369 5,231 5,079 4,625 4,739 15,679 13,843 
Occupancy698 789 701 817 768 2,188 2,230 
Equipment265 283 218 178 170 766 561 
Data Processing714 718 857 681 540 2,289 1,471 
FDIC Assessment189 224 152 154 147 565 484 
PA Shares Tax217 195 260 258 240 672 721 
Contracted Services286 434 147 405 288 868 1,223 
Legal and Professional Fees320 246 182 362 334 748 876 
Advertising114 75 79 165 131 268 362 
Other Real Estate Owned (Income)(8)(35)(37)(38)(38)(80)(113)
Amortization of Intangible Assets445 446 445 446 445 1,336 1,336 
Other878 895 945 945 1,063 2,718 2,899 
Total Noninterest Expense9,487 9,501 9,028 8,998 8,827 28,017 25,893 
Income Before Income Tax Expense3,236 3,456 5,285 5,228 4,927 11,978 8,851 
Income Tax Expense564 699 1,129 1,076 998 2,392 1,757 
Net Income $2,672 $2,757 $4,156 $4,152 $3,929 $9,586 $7,094 
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Three Months EndedNine Months Ended
Per Common Share Data9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Dividends Per Common Share$0.25 $0.25 $0.25 $0.24 $0.24 $0.75 $0.72 
Earnings Per Common Share - Basic0.52 0.54 0.81 0.81 0.77 1.88 1.38 
Earnings Per Common Share - Diluted0.52 0.54 0.81 0.81 0.77 1.87 1.37 
Weighted Average Common Shares Outstanding - Basic5,115,026 5,111,987 5,109,597 5,095,237 5,106,861 5,112,223 5,150,632 
Weighted Average Common Shares Outstanding - Diluted5,126,546 5,116,134 5,115,705 5,104,254 5,118,627 5,118,279 5,165,376 
9/30/236/30/233/31/2312/31/229/30/22
Common Shares Outstanding5,120,678 5,111,678 5,116,830 5,100,189 5,096,672 
Book Value Per Common Share$22.43 $22.81 $22.90 $21.60 $20.94 
Tangible Book Value per Common Share (1)
20.10 20.39 20.40 19.00 18.25 
Stockholders’ Equity to Assets8.2 %8.1 %8.2 %7.8 %7.5 %
Tangible Common Equity to Tangible Assets (1)
7.4 7.3 7.4 6.9 6.6 
Three Months EndedNine Months Ended
Selected Financial Ratios (2)
9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
Return on Average Assets0.75 %0.79 %1.21 %1.16 %1.12 %0.91 %0.68 %
Return on Average Equity9.03 9.38 14.69 15.26 13.60 10.98 7.85 
Average Interest-Earning Assets to Average Interest-Bearing Liabilities139.67 142.37 147.53 149.04 149.41 143.07 147.64 
Average Equity to Average Assets8.32 8.38 8.27 7.63 8.20 8.33 8.61 
Net Interest Rate Spread2.54 2.78 3.12 3.17 3.10 2.80 3.03 
Net Interest Rate Spread (FTE) (1)
2.55 2.79 3.13 3.18 3.11 2.81 3.04 
Net Interest Margin3.13 3.29 3.51 3.45 3.29 3.31 3.17 
Net Interest Margin (FTE) (1)
3.14 3.30 3.52 3.46 3.30 3.32 3.18 
Net Charge-Offs (Recoveries) to Average Loans0.04 0.04 (0.29)0.01 (0.01)(0.07)0.33 
Efficiency Ratio72.26 70.96 62.72 63.25 64.18 68.48 67.21 
Asset Quality Ratios9/30/236/30/233/31/2312/31/229/30/22
Allowance for Credit Losses to Total Loans0.98 %0.97 %0.96 %1.22 %1.23 %
Allowance for Credit Losses to Nonperforming Loans (3)
330.13 260.46 189.73 221.06 218.61 
Allowance for Credit Losses to Noncurrent Loans (4)
330.13 260.46 189.73 320.64 318.96 
Delinquent and Nonaccrual Loans to Total Loans (4) (5)
0.73 0.68 1.02 0.81 0.46 
Nonperforming Loans to Total Loans (3)
0.30 0.37 0.51 0.55 0.56 
Noncurrent Loans to Total Loans (4)
0.30 0.37 0.51 0.38 0.39 
Nonperforming Assets to Total Assets (6)
0.23 0.30 0.40 0.41 0.41 
Capital Ratios (7)
9/30/236/30/233/31/2312/31/229/30/22
Common Equity Tier 1 Capital (to Risk Weighted Assets)12.77 %12.54 %12.60 %12.33 %12.02 %
Tier 1 Capital (to Risk Weighted Assets)12.77 12.54 12.60 12.33 12.02 
Total Capital (to Risk Weighted Assets)13.90 13.64 13.69 13.58 13.27 
Tier 1 Leverage (to Adjusted Total Assets)9.37 9.26 9.24 8.66 8.51 
(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 all nonaccrual loans and accruing loans that are 90 days or more past due.
(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. 
8

AVERAGE BALANCES AND YIELDS
 Three Months Ended
 September 30, 2023June 30, 2023March 31, 2023December 31, 2022September 30, 2022
Average BalanceInterest and Dividends
Yield / Cost (1)
Average BalanceInterest and Dividends
Yield / Cost (1)
Average BalanceInterest and Dividends
Yield / Cost (1)
Average BalanceInterest and Dividends
Yield / Cost (1)
Average BalanceInterest and Dividends
Yield / Cost (1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)
$1,088,691 $14,081 5.13 %$1,079,399 $13,450 5.00 %$1,040,570 $12,391 4.83 %$1,034,714 $11,853 4.54 %$1,024,363 $10,833 4.20 %
Debt Securities
Taxable204,848 940 1.84 209,292 950 1.82 213,158 964 1.81 216,915 974 1.80 222,110 985 1.77 
Exempt From Federal Tax6,013 52 3.46 6,180 53 3.43 6,270 52 3.32 6,277 51 3.25 7,998 62 3.10 
Equity Securities2,693 25 3.71 2,693 25 3.71 2,693 24 3.56 2,693 28 4.16 2,693 21 3.12 
Interest-Earning Deposits at Banks52,642 750 5.70 54,466 721 5.30 74,555 805 4.32 99,108 939 3.79 67,870 378 2.23 
Other Interest-Earning Assets3,292 69 8.32 2,783 39 5.62 2,633 39 6.01 2,875 39 5.38 2,784 39 5.56 
Total Interest-Earning Assets1,358,179 15,917 4.65 1,354,813 15,238 4.51 1,339,879 14,275 4.32 1,362,582 13,884 4.04 1,327,818 12,318 3.68 
Noninterest-Earning Assets52,709 51,928 48,369 51,718 68,796 
Total Assets$1,410,888 $1,406,741 $1,388,248 $1,414,300 $1,396,614 
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts $363,997 $2,003 2.18 %$354,497 $1,582 1.79 %$335,327 $1,191 1.44 %$315,352 $810 1.02 %$278,412 $393 0.56 %
Savings Accounts212,909 54 0.10 225,175 53 0.09 242,298 37 0.06 249,948 29 0.05 251,148 20 0.03 
Money Market Accounts187,012 1,141 2.42 194,565 1,033 2.13 213,443 939 1.78 206,192 604 1.16 189,371 269 0.56 
Time Deposits 173,832 1,552 3.54 155,867 1,174 3.02 101,147 337 1.35 116,172 368 1.26 123,438 397 1.28 
Total Interest-Bearing Deposits937,750 4,750 2.01 930,104 3,842 1.66 892,215 2,504 1.14 887,664 1,811 0.81 842,369 1,079 0.51 
Short-Term Borrowings— — — 480 3 2.51 1,344 2 0.60 8,985 7 0.31 28,738 19 0.26 
Other Borrowings34,662 407 4.66 21,026 238 4.54 14,641 155 4.29 17,598 171 3.86 17,621 174 3.92 
Total Interest-Bearing Liabilities972,412 5,157 2.10 951,610 4,083 1.72 908,200 2,661 1.19 914,247 1,989 0.86 888,728 1,272 0.57 
Noninterest-Bearing Demand Deposits312,016 326,262 362,343 391,300 390,658 
Other Liabilities9,025 10,920 2,953 788 2,636 
Total Liabilities1,293,453 1,288,792 1,273,496 1,306,335 1,282,022 
Stockholders' Equity117,435 117,949 114,752 107,965 114,592 
Total Liabilities and Stockholders' Equity$1,410,888 $1,406,741 $1,388,248 $1,414,300 $1,396,614 
Net Interest Income (FTE)
(Non-GAAP) (3)
$10,760 $11,155 $11,614 $11,895 $11,046 
Net Interest-Earning Assets (4)
385,767 403,203 431,679 448,335 439,090 
Net Interest Rate Spread (FTE)
(Non-GAAP) (3) (5)
2.55 %2.79 %3.13 %3.18 %3.11 %
Net Interest Margin (FTE)
(Non-GAAP) (3)(6)
3.14 3.30 3.52 3.46 3.30 
PPP Loans24 1 16.53 38 1 10.56 100 3 12.17 216 22 40.41 2,424 123 20.13 
(1)    Annualized based on three months ended results.
(2)    Net of the allowance for credit losses and includes nonaccrual loans with a zero yield.
(3)    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.
(4)    Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5)    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.
(6)    Net interest margin represents annualized net interest income divided by average total interest-earning assets.
9

AVERAGE BALANCES AND YIELDS
Nine Months Ended
September 30, 2023September 30, 2022
Average BalanceInterest and Dividends
Yield /Cost (1)
Average BalanceInterest and Dividends
Yield / Cost (1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)
$1,069,729 $39,924 4.99 %$1,013,871 $30,157 3.98 %
Debt Securities
Taxable209,069 2,853 1.82 222,132 2,878 1.73 
Exempt From Federal Tax6,154 157 3.40 9,093 218 3.20 
Marketable Equity Securities2,693 74 3.66 2,693 64 3.17 
Interest-Earning Deposits at Banks60,474 2,276 5.02 61,213 534 1.16 
Other Interest-Earning Assets2,905 148 6.81 3,165 115 4.86 
Total Interest-Earning Assets1,351,024 45,432 4.50 1,312,167 33,966 3.46 
Noninterest-Earning Assets51,018 91,607 
Total Assets$1,402,042 $1,403,774 
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts$351,379 $4,776 1.82 %$271,897 $554 0.27 %
Savings Accounts226,686 145 0.09 247,790 58 0.03 
Money Market Accounts198,243 3,113 2.10 190,189 371 0.26 
Time Deposits 143,881 3,063 2.85 127,732 1,231 1.29 
Total Interest-Bearing Deposits 920,189 11,097 1.61 837,608 2,214 0.35 
Short-Term Borrowings604 5 1.11 33,553 56 0.22 
Other Borrowings23,516 800 4.55 17,612 522 3.96 
Total Interest-Bearing Liabilities944,309 11,902 1.69 888,773 2,792 0.42 
Noninterest-Bearing Demand Deposits333,356 388,964 
Other Liabilities7,655 5,177 
Total Liabilities1,285,320 1,282,914 
Stockholders' Equity116,722 120,860 
Total Liabilities and Stockholders' Equity$1,402,042 $1,403,774 
Net Interest Income (FTE) (Non-GAAP) (3)
33,530 31,174 
Net Interest-Earning Assets (4)
406,715 423,394 
Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5)
2.81 %3.04 %
Net Interest Margin (FTE) (Non-GAAP) (3)(6)
3.32 3.18 
PPP Loans54 5 12.38 7,503 712 12.69 
(1)    Annualized based on nine months ended results.
(2)    Net of the allowance for credit losses and includes nonaccrual loans with a zero yield.
(3)    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.
(4)    Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(5)    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.
(6)    Net interest margin represents annualized net interest income divided by average total interest-earning assets.


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 similar 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.

9/30/236/30/233/31/2312/31/229/30/22
(Dollars in thousands, except share and per share data) (Unaudited)
Assets (GAAP)$1,399,492 $1,432,733 $1,430,708 $1,408,938 $1,425,920 
Goodwill and Intangible Assets, Net(11,909)(12,354)(12,800)(13,245)(13,691)
Tangible Assets (Non-GAAP) (Numerator)$1,387,583 $1,420,379 $1,417,908 $1,395,693 $1,412,229 
Stockholders' Equity (GAAP)$114,846 $116,589 $117,195 $110,155 $106,706 
Goodwill and Intangible Assets, Net(11,909)(12,354)(12,800)(13,245)(13,691)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)$102,937 $104,235 $104,395 $96,910 $93,015 
Stockholders’ Equity to Assets (GAAP)8.2 %8.1 %8.2 %7.8 %7.5 %
Tangible Common Equity to Tangible Assets (Non-GAAP)7.4 %7.3 %7.4 %6.9 %6.6 %
Common Shares Outstanding (Denominator)5,120,678 5,111,678 5,116,830 5,100,189 5,096,672 
Book Value per Common Share (GAAP)$22.43 $22.81 $22.90 $21.60 $20.94 
Tangible Book Value per Common Share (Non-GAAP)$20.10 $20.39 $20.40 $19.00 $18.25 

Three Months EndedNine Months Ended
9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
(Dollars in thousands) (Unaudited)
Net Income (GAAP)$2,672 $2,757 $4,156 $4,152 $3,929 $9,586 $7,094 
Amortization of Intangible Assets, Net445 446 445 446 445 1,336 1,336 
Adjusted Net Income (Non-GAAP) (Numerator)$3,117 $3,203 $4,601 $4,598 $4,374 $10,922 $8,430 
Annualization Factor3.97 4.01 4.06 3.97 3.97 1.34 1.34 
Average Stockholders' Equity (GAAP)$117,435 $117,949 $114,752 $107,965 $114,592 $116,722 $120,860 
Average Goodwill and Intangible Assets, Net(12,185)(12,626)(13,080)(13,534)(13,968)(12,627)(14,414)
Average Tangible Common Equity (Non-GAAP) (Denominator)$105,250 $105,323 $101,672 $94,431 $100,624 $104,095 $106,446 
Return on Average Equity (GAAP)9.03 %9.38 %14.69 %15.26 %13.60 %10.98 %7.85 %
Return on Average Tangible Common Equity (Non-GAAP)11.75 %12.20 %18.35 %19.32 %17.25 %14.03 %10.59 %
11

Three Months EndedNine Months Ended
9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)$15,874 $15,203 $14,244 $13,855 $12,287 $45,321 $33,861 
Adjustment to FTE Basis43 35 31 29 31 111 105 
Interest Income (FTE) (Non-GAAP)15,917 15,238 14,275 13,884 12,318 45,432 33,966 
Interest Expense (GAAP)5,157 4,083 2,661 1,989 1,272 11,902 2,792 
Net Interest Income (FTE) (Non-GAAP)$10,760 $11,155 $11,614 $11,895 $11,046 $33,530 $31,174 
Net Interest Rate Spread (GAAP)2.54 %2.78 %3.12 %3.17 %3.10 %2.80 %3.03 %
Adjustment to FTE Basis0.01 0.01 0.01 0.01 0.01 0.01 0.01 
Net Interest Rate Spread (FTE) (Non-GAAP)2.55 %2.79 %3.13 %3.18 %3.11 %2.81 %3.04 %
Net Interest Margin (GAAP)3.13 %3.29 %3.51 %3.45 %3.29 %3.31 %3.17 %
Adjustment to FTE Basis0.01 0.01 0.01 0.01 0.01 0.01 0.01 
Net Interest Margin (FTE) (Non-GAAP)3.14 %3.30 %3.52 %3.46 %3.30 %3.32 %3.18 %

Three Months EndedNine Months Ended
9/30/236/30/233/31/2312/31/229/30/229/30/239/30/22
(Dollars in thousands) (Unaudited)
Net Income Before Income Tax Expense (GAAP)$3,236 $3,456 $5,285 $5,228 $4,927 $11,978 $8,851 
Provision for Credit Losses291 492 80 — — 863 3,784 
PPNR (Non-GAAP) (Numerator)$3,527 $3,948 $5,365 $5,228 $4,927 $12,841 $12,635 
Annualization Factor3.97 4.01 4.06 3.97 3.97 1.34 1.34 
Average Assets (Denominator)$1,410,888 $1,406,741 $1,388,248 $1,414,300 $1,396,614 $1,402,042 $1,403,774 
PPNR Return on Average Assets (Non-GAAP)0.99 %1.13 %1.57 %1.47 %1.40 %1.22 %1.20 %
12
v3.23.3
Cover
Oct. 27, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 27, 2023
Entity Registrant Name CB FINANCIAL SERVICES, INC.
Entity File Number 001-36706
Entity Incorporation, State or Country Code PA
Entity Tax Identification Number 51-0534721
Entity Address, Address Line One 100 N. Market Street
Entity Address, City or Town Carmichaels
Entity Address, State or Province PA
Entity Address, Postal Zip Code 15320
City Area Code 724
Local Phone Number 966-5041
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $0.4167 per share
Trading Symbol CBFV
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001605301
Amendment Flag false
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