CB Financial Services (CBFV) investor relations material

Executive summary

• Net income for Q1 2026 was $3.9 million, up from $1.9 million in Q1 2025, driven by higher net interest income, improved credit quality, and robust deposit growth.

• Net interest margin increased to 3.83%, supported by lower cost of funds and growth in Specialty Treasury deposits.

• Total assets reached $1.58 billion, a 2.3% increase from year-end 2025, with growth in cash, securities, and construction/residential loans.

• Continued focus on technology upgrades, talent acquisition, and process optimization to enhance client experience and efficiency.

• A material internal incident involving unauthorized disclosure of non-public customer information was reported, but no material financial impact is expected.

Financial highlights

• Net interest and dividend income rose 22.6% year-over-year to $13.9 million, with net interest margin up 56 bps to 3.83%.

• Total loans were $1.15 billion, down 0.4% from Q4 2025, mainly due to discontinued indirect auto loans; excluding these, loans grew 0.1%.

• Deposits rose 2.7% to $1.38 billion, with $39.7 million growth in core (non-time) deposits, primarily from Specialty Treasury division.

• Book value per share was $31.30 and tangible book value per share was $29.38 at quarter-end.

• Nonperforming loans to total loans stood at 0.29%; annualized net charge-offs to average loans were 0.01%.

Outlook and guidance

• Management expects continued focus on core deposit growth, prudent loan production, and cost control, with ongoing investments in technology and talent to drive further deposit and revenue growth.

• Management remains vigilant regarding inflation, interest rate volatility, and regulatory changes, with a focus on cost control and risk management.

• No material impact anticipated from the internal data incident.

• Strong liquidity and capital positions provide flexibility to navigate macroeconomic uncertainties.

• Specialty Treasury and mortgage lending initiatives are expected to drive sustainable revenue and deposit growth.