CB Financial Services (CBFV) investor relations material

Executive summary

• Net income for Q2 2026 was $4.3 million, with core net income and adjusted net income also at $4.3 million, and diluted core EPS of $0.81; total loans rose 1.9% sequentially, driven by commercial and construction real estate lending, while indirect auto loans declined due to product discontinuation.

• Total assets reached $1.66 billion at June 30, 2026, a $73.1 million increase from March 31, 2026, supported by strong organic deposit growth and strategic balance sheet management.

• Organic deposits increased 5.4% from Q1 2026, with strong contributions from the Specialty Treasury division, which reached full operational capacity and contributed $84.1 million in new deposits since year-end.

• Maintained strong credit quality, with nonperforming loans at 0.29% of total loans and nonperforming assets at 0.20% of total assets.

• Continued focus on technology upgrades, talent acquisition, and process optimization to drive efficiency and growth.

Financial highlights

• Net interest income rose to $14.5 million in Q2 2026, up 4.8% sequentially and from $13.9 million in Q1 2026; net interest margin declined 15 bps to 3.68% due to lower asset yields and higher funding costs.

• Noninterest expense increased 3.8% sequentially to $10.4 million, mainly from higher salaries, benefits, and data processing costs related to treasury initiatives.

• Tangible book value per share (non-GAAP) increased to $29.99 at June 30, 2026, up from $29.35 at year-end 2025.

• Dividend yield stood at 3.13%, with an 8% increase in the quarterly dividend to $0.28 per share in Q1 2026, payable August 28, 2026.

• Book value per share was $31.91 at June 30, 2026.

Outlook and guidance

• Ongoing investments in technology and talent are expected to support further growth in treasury and commercial banking.

• Management anticipates continued organic deposit growth and incremental revenue from new products and services, with the Specialty Treasury program expected to enhance efficiency, scalability, and earnings power.

• Cost control and pricing strategies remain critical amid volatile inflation and potential rate increases later in 2026.

• Expansion in mortgage lending aims to deepen customer relationships and diversify revenue.

• Management remains focused on prudent financial discipline, balance sheet resilience, and credit quality amid economic volatility.