CB Financial Services, Inc. Announces Third Quarter and Year-to-Date 2024 Financial Results and Declares Quarterly Cash Dividend

WASHINGTON, Pa.--(BUSINESS WIRE)--CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”), today announced its third quarter and year-to-date 2024 financial results.

	Three Months Ended													Nine Months Ended
	9/30/24			6/30/24		3/31/24			12/31/23			9/30/23		9/30/24			9/30/23
(Dollars in thousands, except per share data) (Unaudited)
Net Income (GAAP)	$	3,219		$	2,650	$	4,196		$	12,966		$	2,672	$	10,065		$	9,586
Net Income Adjustments		(293	)		24		(1,000	)		(9,905	)		29		(1,269	)		(20	)
Adjusted Net Income (Non-GAAP) ^(1)	$	2,926		$	2,674	$	3,196		$	3,061		$	2,701	$	8,796		$	9,566
Earnings per Common Share - Diluted (GAAP)	$	0.60		$	0.51	$	0.82		$	2.52		$	0.52	$	1.89		$	1.87
Adjusted Earnings per Common Share - Diluted (Non-GAAP) ^(1)	$	0.55		$	0.52	$	0.62		$	0.60		$	0.53	$	1.65		$	1.87

(1)	Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release.

2024 Third Quarter Financial Highlights

(Comparisons to three months ended September 30, 2023 unless otherwise noted)

• Net income was $3.2 million, compared to $2.7 million. Results were impacted by the December 2023 sale of the Bank’s subsidiary insurance agency, Exchange Underwriters (“EU”), which drove decreases in noninterest income and noninterest expense.
• Earnings per diluted common share (EPS) increased to $0.60 from $0.52.
• Return on average assets (annualized) was 0.84%, compared to 0.75%.
• Return on average equity (annualized) was 8.80%, compared to 9.03%.
• Net interest and dividend income was $11.5 million, compared to $10.7 million.
• Noninterest income decreased to $1.2 million, compared to $2.4 million. The significant decrease in noninterest income was driven by a $1.4 million decrease in insurance commissions due to the sale of EU.
• Noninterest expense decreased to $8.8 million, compared to $9.5 million, due to decreases in compensation and benefits and intangible amortization expenses also driven by the sale of EU, partially offset by increases in contracted services, data processing, occupancy and Pennsylvania shares tax expenses.

(Amounts at September 30, 2024; comparisons to December 31, 2023, unless otherwise noted)

• Total assets increased $105.7 million, or 7.3%, to $1.6 billion from $1.5 billion.
• Total loans decreased $44.6 million, or 4.0%, to $1.07 billion compared to $1.11 billion, and included decreases in consumer, residential real estate, commercial real estate and commercial and industrial loans of $31.6 million, $8.9 million, $2.8 million and $2.7 million, respectively. The consumer loan portfolio is primarily comprised of indirect automobile loans and decreased as a result of the discontinuation of that product as of June 30, 2023. Excluding the $31.8 million decrease in indirect automobile loans, total loans decreased $12.8 million, or 1.2%. In total, $95.5 million of loans have paid off since December 31, 2023.
• Nonperforming loans to total loans was 0.19% at September 30, 2024, compared to 0.20% at December 31, 2023.
• Total deposits were $1.35 billion, an increase of $86.7 million, compared to $1.27 billion.
• Book value per share was $29.07, compared to $27.79 as of June 30, 2024 and $27.32 as of December 31, 2023.
• Tangible book value per share (Non-GAAP) was $27.16, compared to $25.83 as of June 30, 2024 and $25.23 as of December 31, 2023. The year-to-date change was due to an increase in stockholders’ equity primarily related to current period net income of $10.1 million and a $2.8 million decrease in accumulated other comprehensive loss, partially offset by the payment of $3.9 million in dividends since December 31, 2023.

Management Commentary

President and CEO John H. Montgomery commented, “Funding costs continued to increase from the prior period, maintaining pressure on our net interest margin. However, relief from this ongoing trend appears to be on the horizon with prevailing market deposit costs beginning to soften. Our balance sheet strategies and continued focus on quality, relationship-driven loan production continue to strengthen the fundamentals of our bank.

During the quarter, our loan portfolio decreased $12.9 million, or 1.2%, with the previously exited Indirect Lending Portfolio declining $10.4 million. Commercial real estate loans increased $5.6 million, while residential real estate loans declined $3.8 million, results that are consistent with the purposeful repositioning of our loan portfolio. Notably, our asset quality remains robust, with nonperforming loans remaining stable at $2.0 million (0.19% of total loans) from $2.2 million (0.20% of total loans) at year end 2023.

Overall, deposit movements continued during the quarter, shifting from non-interest and low interest-bearing accounts to higher-cost time deposits. Total deposits remained relatively stable, with a slight increase, largely due to growth in our interest-bearing demand deposits and time deposits.

During the quarter, we continued progress on our strategic initiatives by implementing our Specialty Treasury Payments & Services strategy. This strategy includes development of a platform that will provide Treasury Management payments, products and an exceptional client experience to our traditional Commercial Treasury Clients and Multiple Deposit Niche markets. This targeted Specialized Treasury Management program will allow us to enter into new markets with a proven and differentiated approach, focusing on specific industries that are deposit rich, need high levels of service, and require access to highly efficient money movement systems.

Additionally, we completed the construction and celebrated the opening of a state-of-the-art branch office in Uniontown, PA, continuing the service we have provided to Fayette County for many decades.

We are confident that sustained investment in our franchise, unwavering commitment to our long-term strategy, and dedication to providing an exceptional client experience will benefit all stakeholders.”

Dividend Declaration

The Company’s Board of Directors declared a $0.25 quarterly cash dividend per outstanding share of common stock, payable on or about November 29, 2024, to stockholders of record as of the close of business on November 15, 2024.

2024 Third Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income increased $757,000, or 7.1%, to $11.5 million for the three months ended September 30, 2024 compared to $10.7 million for the three months ended September 30, 2023.

• Net Interest Margin (NIM) (GAAP) decreased to 3.11% for the three months ended September 30, 2024 compared to 3.13% for the three months ended September 30, 2023. Fully tax equivalent (FTE) NIM (Non-GAAP) decreased 2 basis points (“bps”) to 3.12% for the three months ended September 30, 2024 compared to 3.14% for the three months ended September 30, 2023.
• Interest and dividend income increased $3.9 million, or 24.6%, to $19.8 million for the three months ended September 30, 2024 compared to $15.9 million for the three months ended September 30, 2023.
  • Interest income on loans increased $896,000, or 6.4%, to $14.9 million for the three months ended September 30, 2024 compared to $14.0 million for the three months ended September 30, 2023. The average yield on loans increased 47 bps to 5.60% compared to 5.13% resulting in a $1.3 million increase in interest income on loans. The average balance of loans decreased $24.7 million to $1.06 billion from $1.09 billion, causing a $357,000 decrease in interest income on loans. The increase in loan yield has been driven by a reduction in lower yielding consumer loans due to the discontinuation of the indirect automobile loan product with the redeployment of those funds into higher yielding commercial loan products.
  • Interest income on taxable investment securities increased $2.3 million, or 249.9%, to $3.3 million for the three months ended September 30, 2024 compared to $940,000 for the three months ended September 30, 2023 driven by a 272 bp increase in average yield coupled with a $83.4 million increase in average balances. The increase in the average yield was the result of the Bank implementing a balance sheet repositioning strategy of its portfolio of available-for-sale securities during the fourth quarter of 2023. The Bank sold $69.3 million in market value of its lower yielding U.S. government agency, mortgage-backed and municipal securities with an average yield of 1.89% and purchased $69.3 million of higher yielding mortgage-backed and collateralized mortgage obligation securities with an average yield of 5.49%. The increase in volume was driven by a $99.9 million increase in the average balance of collateralized loan obligation (“CLO”) securities as the Bank executed a leverage strategy to purchase these assets funded with brokered certificates of deposits.
  • Interest income on interest-earning deposits at other banks increased $698,000 to $1.4 million for the three months ended September 30, 2024 compared to $750,000 for the three months ended September 30, 2023 driven by a $58.7 million increase in average balances, partially offset by a 51 bp decrease in the average yield. The volume increase was due in part to $30.5 million in cash received from the December 2023 sale of EU.
• Interest expense increased $3.1 million, or 60.9%, to $8.3 million for the three months ended September 30, 2024 compared to $5.2 million for the three months ended September 30, 2023.
  • Interest expense on deposits increased $3.1 million, or 66.1%, to $7.9 million for the three months ended September 30, 2024 compared to $4.8 million for the three months ended September 30, 2023. Rising market interest rates led to the repricing of interest-bearing demand and money market deposits and a shift in deposits from noninterest-bearing and interest-bearing demand deposits into money market and time deposits which resulted in a 93 bp, or 46.3%, increase in the average cost of interest-bearing deposits compared to the three months ended September 30, 2023. This accounted for a $2.4 million increase in interest expense. Additionally, interest-bearing deposit balances increased $130.0 million, or 13.9%, to $1.1 billion as of September 30, 2024 compared to $937.8 million as of September 30, 2023, accounting for a $716,000 increase in interest expense.

Provision for Credit Losses

The provision for credit losses recorded for the three months ended September 30, 2024 was a net recovery of $41,000. The provision for credit losses - loans was $25,000 and was primarily due to changes in qualitative factors partially offset by changes in loan portfolio concentrations and an improvement in loss rates. The provision for credit losses - unfunded commitments was a recovery of $66,000 and was due to a decrease in the unfunded commitments and in the loss rate on construction loans. This compared to a $406,000 provision for credit losses recorded for the three months ended September 30, 2023 and was required primarily due to loan growth coupled with a modeled slowdown in loan prepayment speeds.

Noninterest Income

Noninterest income decreased $1.2 million, or 48.9%, to $1.2 million for the three months ended September 30, 2024, compared to $2.4 million for the three months ended September 30, 2023. This decrease resulted primarily from a $1.4 million decrease in insurance commissions as no income was recognized for the three months ended September 30, 2024 due to the December 2023 sale of EU, compared to a full quarter of income recognized for the three months ended September 30, 2023.

Noninterest Expense

Noninterest expense decreased $705,000, or 7.4%, to $8.8 million for the three months ended September 30, 2024 compared to $9.5 million for the three months ended September 30, 2023. Salaries and benefits decreased $808,000, or 15.0%, to $4.6 million primarily due to no expense related to EU recognized for the three months ended September 30, 2024 due to the December 2023 sale, compared to $878,000 of expense recognized for the three months ended September 30, 2023, partially offset by merit increases and revenue producing staff additions. Intangible amortization decreased $181,000 as a portion of the Bank’s core deposit intangible was fully amortized in February 2024 and EU intangible amortization of $47,000 was realized during the three months ended September 30, 2023. Data processing expense increased $58,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform. Occupancy expense increased $57,000 due to $130,000 of environmental remediation costs related to a construction project on one of the Bank’s office locations, partially offset by $44,000 of EU occupancy expense realized during the three months ended September 30, 2023. Pennsylvania shares tax expense increased $48,000 due to a higher taxable base due to the increase in equity resulting from the sale of EU.

Statement of Financial Condition Review

Assets

Total assets increased $105.7 million, or 7.3%, to $1.6 billion at September 30, 2024, compared to $1.5 billion at December 31, 2023.

• Cash and due from banks increased $79.1 million, or 115.9%, to $147.3 million at September 30, 2024, compared to $68.2 million at December 31, 2023.
• Securities increased $63.8 million, or 30.8%, to $270.9 million at September 30, 2024, compared to $207.1 million at December 31, 2023. The securities balance was primarily impacted by the purchase of $69.8 million of CLO securities, partially offset by $10.7 million of principal repayments on amortizing securities.

Loans and Credit Quality

• Total loans decreased $44.6 million, or 4.0%, to $1.07 billion at September 30, 2024 compared to $1.11 billion at December 31, 2023. This was driven by decreases in consumer, residential real estate, commercial real estate and commercial and industrial loans of $31.6 million, $8.9 million, $2.8 million and $2.7 million, respectively, partially offset by increases in other loans and construction loans of $1.0 million and $399,000, respectively. 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. In total, $95.5 million of loans have paid off since December 31, 2023.
• The allowance for credit losses (ACL) was $9.5 million at September 30, 2024 and $9.7 million at December 31, 2023. As a result, the ACL to total loans was 0.89% at September 30, 2024 and 0.87% at December 31, 2023. During the current year, the Company recorded a net recovery of credit losses of $114,000.
• Net charge-offs for the three months ended September 30, 2024 were $73,000, or 0.03% of average loans on an annualized basis. 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 charge-offs for the nine months ended September 30, 2024 were $123,000. Net recoveries for the nine months ended September 30, 2023 were $551,000 primarily due to recoveries totaling $750,000 related to a prior year $2.7 million charged-off commercial and industrial loan.
• Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $2.0 million at September 30, 2024 and $2.2 million at December 31, 2023. Nonperforming loans to total loans ratio was 0.19% at September 30, 2024 and 0.20% at December 31, 2023.

Other

• Accrued interest and other assets increased $7.8 million or 32.1%, to $32.1 million at September 30, 2024, compared to $24.3 million at December 31, 2023 due primarily to a $6.0 million investment in a low-income housing tax credit project.

Total liabilities increased $96.3 million, or 7.3%, to $1.4 billion at September 30, 2024 compared to $1.3 billion at December 31, 2023.

Deposits

• Total deposits increased $86.7 million to $1.35 billion as of September 30, 2024 compared to $1.27 billion at December 31, 2023. Time deposits increased $136.5 million and money market deposits increased $19.7 million while interest-bearing demand, savings and non interest-bearing demand deposits decreased $36.5 million, $22.3 million and $10.7 million, respectively. Deposit changes were primarily the result of the current interest rate environment causing a shift in deposit products to higher priced money market and time deposits. Additionally, the Bank added $70.6 million of brokered certificates of deposit during the period. Brokered certificates of deposit totaled $99.6 million as of September 30, 2024 compared to $29.0 million at December 31, 2023, all mature within three months and were utilized to fund the purchase of floating rate CLO securities. At September 30, 2024, FDIC insured deposits totaled approximately 62.4% of total deposits while an additional 15.9% of total deposits were collateralized with investment securities.

Accrued Interest Payable and Other Liabilities

• Accrued interest payable and other liabilities increased $9.7 million, or 67.3%, to $24.1 million at September 30, 2024, compared to $14.4 million at December 31, 2023 primarily due to the purchase of $6.0 million of syndicated loans which were unfunded at the end of the period and a $5.4 million unfunded commitment related to a low-income housing tax credit project.

Stockholders’ Equity

Stockholders’ equity increased $9.3 million, or 6.7%, to $149.1 million at September 30, 2024, compared to $139.8 million at December 31, 2023. The key factor positively impacting stockholders’ equity was $10.1 million of net income for the current period and a $2.8 million decrease in accumulated other comprehensive loss, partially offset by the payment of $3.9 million in dividends since December 31, 2023.

Book value per share

Book value per common share was $29.07 at September 30, 2024 compared to $27.32 at December 31, 2023, an increase of $1.75.

Tangible book value per common share (Non-GAAP) was $27.16 at September 30, 2024, compared to $25.23 at December 31, 2023, an increase of $1.93.

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.

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, 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.

CB FINANCIAL SERVICES, INC. SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except share and per share data) (Unaudited)
Selected Financial Condition Data	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
Assets
Cash and Due From Banks	$	147,325		$	142,600		$	73,691		$	68,223		$	52,597
Securities		270,881			268,769			232,276			207,095			172,904
Loans Held for Sale		428			632			200			—			—
Loans
Real Estate:
Residential		338,926			342,689			346,938			347,808			346,485
Commercial		464,354			458,724			470,430			467,154			466,910
Construction		43,515			44,038			44,323			43,116			41,874
Commercial and Industrial		108,554			112,395			103,313			111,278			100,873
Consumer		80,004			90,357			100,576			111,643			122,516
Other		30,402			30,491			30,763			29,397			23,856
Total Loans		1,065,755			1,078,694			1,096,343			1,110,396			1,102,514
Allowance for Credit Losses		(9,479	)		(9,527	)		(9,582	)		(9,707	)		(10,848	)
Loans, Net		1,056,276			1,069,167			1,086,761			1,100,689			1,091,666
Premises and Equipment, Net		20,838			20,326			19,548			19,704			18,524
Bank-Owned Life Insurance		24,057			23,910			23,763			25,378			25,227
Goodwill		9,732			9,732			9,732			9,732			9,732
Intangible Assets, Net		88			353			617			958			2,177
Accrued Interest Receivable and Other Assets		32,116			24,770			26,501			24,312			26,665
Total Assets	$	1,561,741		$	1,560,259		$	1,473,089		$	1,456,091		$	1,399,492
Liabilities
Deposits
Noninterest-Bearing Demand Accounts	$	267,022		$	269,964		$	275,182		$	277,747		$	305,145
Interest-Bearing Demand Accounts		326,505			324,688			323,134			362,994			357,381
Money Market Accounts		220,789			229,998			208,375			201,074			189,187
Savings Accounts		172,354			179,081			190,206			194,703			207,148
Time Deposits		367,150			346,037			265,597			230,641			177,428
Total Deposits		1,353,820			1,349,768			1,262,494			1,267,159			1,236,289
Other Borrowings		34,708			34,698			34,688			34,678			34,668
Accrued Interest Payable and Other Liabilities		24,073			32,911			34,317			14,420			13,689
Total Liabilities		1,412,601			1,417,377			1,331,499			1,316,257			1,284,646
Stockholders’ Equity		149,140			142,882			141,590			139,834			114,846
Total Liabilities and Stockholders’ Equity	$	1,561,741		$	1,560,259		$	1,473,089		$	1,456,091		$	1,399,492

(Dollars in thousands, except share and per share data) (Unaudited)
	Three Months Ended															Nine Months Ended
Selected Operating Data	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
Interest and Dividend Income:
Loans, Including Fees	$	14,945		$	14,670		$	14,838		$	14,804		$	14,049		$	44,453		$	39,846
Securities:
Taxable		3,289			2,844			2,303			1,164			940			8,437			2,853
Tax-Exempt		—			—			—			33			41			—			124
Dividends		28			27			27			32			25			82			74
Other Interest and Dividend Income		1,511			1,398			818			872			819			3,727			2,424
Total Interest and Dividend Income		19,773			18,939			17,986			16,905			15,874			56,699			45,321
Interest Expense:
Deposits		7,892			7,065			5,991			5,336			4,750			20,948			11,097
Short-Term Borrowings		—			—			—			26			—			—			5
Other Borrowings		407			404			404			407			407			1,215			800
Total Interest Expense		8,299			7,469			6,395			5,769			5,157			22,163			11,902
Net Interest and Dividend Income		11,474			11,470			11,591			11,136			10,717			34,536			33,419
Provision (Recovery) for Credit Losses - Loans		25			12			(143	)		(1,147	)		291			(105	)		863
(Recovery) Provision for Credit Losses - Unfunded Commitments		(66	)		(48	)		106			(273	)		115			(9	)		54
Net Interest and Dividend Income After Net (Recovery) Provision for Credit Losses		11,515			11,506			11,628			12,556			10,311			34,650			32,502
Noninterest Income:
Service Fees		451			354			415			460			466			1,220			1,359
Insurance Commissions		1			1			2			969			1,436			4			4,870
Other Commissions		104			22			62			60			94			188			462
Net Gain (Loss) on Sales of Loans		18			9			22			2			—			49			(3	)
Net Gain (Loss) on Securities		245			(31	)		(166	)		(9,830	)		(37	)		49			(369	)
Net Gain on Purchased Tax Credits		12			12			12			7			7			37			22
Gain on Sale of Subsidiary		138			—			—			24,578			—			138			—
Net Gain on Disposal of Premises and Equipment		—			—			274			—			—			274			11
Income from Bank-Owned Life Insurance		147			147			148			151			145			442			425
Net Gain on Bank-Owned Life Insurance Claims		—			—			915			—			—			915			303
Other Income		117			174			232			121			301			523			413
Total Noninterest Income		1,233			688			1,916			16,518			2,412			3,839			7,493
Noninterest Expense:
Salaries and Employee Benefits		4,561			4,425			4,576			6,224			5,369			13,563			15,679
Occupancy		755			940			749			810			698			2,444			2,188
Equipment		280			298			264			298			265			842			766
Data Processing		772			1,011			692			726			714			2,476			2,289
Federal Deposit Insurance Corporation Assessment		177			161			129			189			189			467			565
Pennsylvania Shares Tax		265			297			297			217			217			860			672
Contracted Services		431			390			281			299			286			1,102			868
Legal and Professional Fees		297			208			212			434			320			717			748
Advertising		141			78			129			158			114			348			268
Other Real Estate Owned (Income)		2			37			(23	)		(36	)		(8	)		16			(80	)
Amortization of Intangible Assets		264			264			341			430			445			870			1,336
Other Expense		837			875			781			1,016			878			2,492			2,718
Total Noninterest Expense		8,782			8,984			8,428			10,765			9,487			26,197			28,017
Income Before Income Tax Expense		3,966			3,210			5,116			18,309			3,236			12,292			11,978
Income Tax Expense		747			560			920			5,343			564			2,227			2,392
Net Income	$	3,219		$	2,650		$	4,196		$	12,966		$	2,672		$	10,065		$	9,586

	Three Months Ended										Nine Months Ended
Per Common Share Data	9/30/24		6/30/24		3/31/24		12/31/23		9/30/23		9/30/24		9/30/23
Dividends Per Common Share	$	0.25	$	0.25	$	0.25	$	0.25	$	0.25	$	0.75	$	0.75
Earnings Per Common Share - Basic		0.63		0.52		0.82		2.53		0.52		1.96		1.88
Earnings Per Common Share - Diluted		0.60		0.51		0.82		2.52		0.52		1.89		1.87
Weighted Average Common Shares Outstanding - Basic		5,137,586		5,142,139		5,129,903		5,119,184		5,115,026		5,136,546		5,112,223
Weighted Average Common Shares Outstanding - Diluted		5,346,750		5,152,657		5,142,286		5,135,997		5,126,546		5,328,610		5,118,279

	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
Common Shares Outstanding		5,129,921			5,141,911			5,142,901			5,118,713			5,120,678
Book Value Per Common Share	$	29.07		$	27.79		$	27.53		$	27.32		$	22.43
Tangible Book Value per Common Share ^(1)		27.16			25.83			25.52			25.23			20.10
Stockholders’ Equity to Assets		9.5	%		9.2	%		9.6	%		9.6	%		8.2	%
Tangible Common Equity to Tangible Assets ^(1)		9.0			8.6			9.0			8.9			7.4

	Three Months Ended										Nine Months Ended
Selected Financial Ratios ^(2)	9/30/24		6/30/24		3/31/24		12/31/23		9/30/23		9/30/24		9/30/23
Return on Average Assets	0.84	%	0.71	%	1.17	%	3.62	%	0.75	%	0.90	%	0.91	%
Return on Average Equity	8.80		7.58		12.03		44.99		9.03		9.45		10.98
Average Interest-Earning Assets to Average Interest-Bearing Liabilities	133.26		135.69		137.07		138.67		139.65		135.28		143.07
Average Equity to Average Assets	9.54		9.36		9.72		8.04		8.32		9.54		8.33
Net Interest Rate Spread	2.36		2.44		2.67		2.56		2.54		2.48		2.80
Net Interest Rate Spread (FTE) ^(1)	2.38		2.46		2.68		2.57		2.55		2.50		2.81
Net Interest Margin	3.11		3.18		3.36		3.19		3.13		3.21		3.31
Net Interest Margin (FTE) ^(1)	3.12		3.19		3.37		3.21		3.14		3.22		3.32
Net Charge-Offs (Recoveries) to Average Loans	0.03		0.02		(0.01	)	—		0.04		0.02		(0.07	)
Efficiency Ratio	69.11		73.89		62.40		38.93		72.26		68.27		68.48

Asset Quality Ratios	9/30/24		6/30/24		3/31/24		12/31/23		9/30/23
Allowance for Credit Losses to Total Loans	0.89	%	0.88	%	0.87	%	0.87	%	0.98	%
Allowance for Credit Losses to Nonperforming Loans ^(3)	463.07		513.03		437.73		433.35		330.13
Delinquent and Nonaccrual Loans to Total Loans^(4)	0.98		0.53		0.63		0.62		0.73
Nonperforming Loans to Total Loans ^(3)	0.19		0.17		0.20		0.20		0.30
Nonperforming Assets to Total Assets ^(5)	0.14		0.13		0.15		0.16		0.23

Capital Ratios ^(6)	9/30/24		6/30/24		3/31/24		12/31/23		9/30/23
Common Equity Tier 1 Capital (to Risk Weighted Assets)	14.79	%	14.62	%	14.50	%	13.64	%	12.77	%
Tier 1 Capital (to Risk Weighted Assets)	14.79		14.62		14.50		13.64		12.77
Total Capital (to Risk Weighted Assets)	15.76		15.61		15.51		14.61		13.90
Tier 1 Leverage (to Adjusted Total Assets)	9.96		9.98		10.28		10.19		9.37

(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)	Delinquent loans consist of accruing loans that are 30 days or more past due.
(5)	Nonperforming assets consist of nonperforming loans and other real estate owned.
(6)	Capital ratios are for Community Bank only.
Certain items previously reported may have been reclassified to conform with the current reporting period’s format.

AVERAGE BALANCES AND YIELDS
	Three Months Ended
	September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
	Average Balance		Interest and Dividends		Yield / Cost ^(1)		Average Balance		Interest and Dividends		Yield / Cost ^(1)		Average Balance		Interest and Dividends		Yield / Cost ^(1)		Average Balance		Interest and Dividends		Yield / Cost ^(1)		Average Balance		Interest and Dividends		Yield / Cost ^(1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net ^(2)	$	1,063,946	$	14,987	5.60	%	$	1,076,455	$	14,711	5.50	%	$	1,087,889	$	14,877	5.50	%	$	1,098,284	$	14,840	5.36	%	$	1,088,691	$	14,081	5.13	%
Debt Securities
Taxable		288,208		3,289	4.56			266,021		2,844	4.28			235,800		2,303	3.91			206,702		1,164	2.25			204,848		940	1.84
Tax-Exempt		—		—	—			—		—	—			—		—	—			4,833		42	3.48			6,013		52	3.46
Equity Securities		2,693		28	4.16			2,693		27	4.01			2,693		27	4.01			2,693		32	4.75			2,693		25	3.71
Interest-Earning Deposits at Banks		111,131		1,448	5.21			101,277		1,313	5.19			58,887		733	4.98			67,450		808	4.79			52,466		750	5.72
Other Interest-Earning Assets		3,108		63	8.06			3,154		85	10.84			3,235		85	10.57			3,387		64	7.50			3,292		69	8.32
Total Interest-Earning Assets		1,469,086		19,815	5.37			1,449,600		18,980	5.27			1,388,504		18,025	5.22			1,383,349		16,950	4.86			1,358,003		15,917	4.65
Noninterest-Earning Assets		57,602						53,564						54,910						38,464						52,885
Total Assets	$	1,526,688					$	1,503,164					$	1,443,414					$	1,421,813					$	1,410,888
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts	$	316,301	$	1,923	2.42	%	$	325,069	$	1,858	2.30	%	$	334,880	$	1,794	2.15	%	$	362,018	$	1,965	2.15	%	$	363,997	$	2,003	2.18	%
Money Market Accounts		217,148		1,726	3.16			214,690		1,646	3.08			203,867		1,514	2.99			205,060		1,441	2.79			187,012		1,141	2.42
Savings Accounts		175,753		46	0.10			184,944		52	0.11			191,444		59	0.12			200,737		57	0.11			212,909		54	0.10
Time Deposits		358,498		4,197	4.66			308,956		3,509	4.57			248,118		2,624	4.25			193,188		1,873	3.85			173,832		1,552	3.54
Total Interest-Bearing Deposits		1,067,700		7,892	2.94			1,033,659		7,065	2.75			978,309		5,991	2.46			961,003		5,336	2.20			937,750		4,750	2.01
Short-Term Borrowings		—		—	—			2		—	—			—		—	—			1,902		26	5.42			—		—	—
Other Borrowings		34,702		407	4.67			34,692		404	4.68			34,682		404	4.69			34,673		407	4.66			34,662		407	4.66
Total Interest-Bearing Liabilities		1,102,402		8,299	2.99			1,068,353		7,469	2.81			1,012,991		6,395	2.54			997,578		5,769	2.29			972,412		5,157	2.10
Noninterest-Bearing Demand Deposits		263,650						272,280						278,691						305,789						312,016
Total Funding and Cost of Funds		1,366,052			2.42			1,340,633			2.24			1,291,682			1.99			1,303,367			1.76			1,284,428			1.59
Other Liabilities		15,043						21,867						11,441						4,119						9,025
Total Liabilities		1,381,095						1,362,500						1,303,123						1,307,486						1,293,453
Stockholders' Equity		145,593						140,664						140,291						114,327						117,435
Total Liabilities and Stockholders' Equity	$	1,526,688					$	1,503,164					$	1,443,414					$	1,421,813					$	1,410,888
Net Interest Income (FTE) (Non-GAAP) ^(3)			$	11,516					$	11,511					$	11,630					$	11,181					$	10,760
Net Interest-Earning Assets ^(4)		366,684						381,247						375,513						385,771						385,591
Net Interest Rate Spread (FTE) (Non-GAAP) ^(3) (5)					2.38	%					2.46	%					2.68	%					2.57	%					2.55	%
Net Interest Margin (GAAP)^(6)					3.11						3.18						3.36						3.19						3.13
Net Interest Margin (FTE) (Non-GAAP)^(3)(6)					3.12						3.19						3.37						3.21						3.14

(1)	Annualized based on three months ended results.
(2)	Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.
(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.

AVERAGE BALANCES AND YIELDS
	Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest and Dividends		Yield /Cost ^(1)		Average Balance		Interest and Dividends		Yield / Cost ^(1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net ^(2)	$	1,076,052	$	44,571	5.53	%	$	1,069,729	$	39,924	4.99	%
Debt Securities
Taxable		263,433		8,437	4.27			209,069		2,853	1.82
Exempt From Federal Tax		—		—	—			6,154		157	3.40
Marketable Equity Securities		2,693		82	4.06			2,693		74	3.66
Interest-Earning Deposits at Banks		90,507		3,493	5.15			60,474		2,276	5.02
Other Interest-Earning Assets		3,166		234	9.87			2,905		148	6.81
Total Interest-Earning Assets		1,435,851		56,817	5.29			1,351,024		45,432	4.50
Noninterest-Earning Assets		55,366						51,018
Total Assets	$	1,491,217					$	1,402,042
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts	$	325,383	$	5,576	2.29	%	$	351,379	$	4,776	1.82	%
Savings Accounts		184,017		157	0.11			226,686		145	0.09
Money Market Accounts		211,921		4,885	3.08			198,243		3,113	2.10
Time Deposits		305,386		10,330	4.52			143,881		3,063	2.85
Total Interest-Bearing Deposits		1,026,707		20,948	2.73			920,189		11,097	1.61
Short-Term Borrowings		1		—	—			604		5	1.11
Other Borrowings		34,692		1,215	4.68			23,516		800	4.55
Total Interest-Bearing Liabilities		1,061,400		22,163	2.79			944,309		11,902	1.69
Noninterest-Bearing Demand Deposits		271,511						333,356
Total Funding and Cost of Funds		1,332,911			2.22			1,277,665			1.25
Other Liabilities		16,045						7,655
Total Liabilities		1,348,956						1,285,320
Stockholders' Equity		142,261						116,722
Total Liabilities and Stockholders' Equity	$	1,491,217					$	1,402,042
Net Interest Income (FTE) (Non-GAAP) ^(3)				34,654						33,530
Net Interest-Earning Assets ^(4)		374,451						406,715
Net Interest Rate Spread (FTE) (Non-GAAP) ^(3)(5)					2.50	%					2.81	%
Net Interest Margin (FTE) (Non-GAAP)^(3)(6)					3.22						3.32

(1)	Annualized based on nine months ended results.
(2)	Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.
(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.

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.

	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
(Dollars in thousands, except share and per share data) (Unaudited)
Total Assets (GAAP)	$	1,561,741		$	1,560,259		$	1,473,089		$	1,456,091		$	1,399,492
Goodwill and Intangible Assets, Net		(9,820	)		(10,085	)		(10,349	)		(10,690	)		(11,909	)
Tangible Assets (Non-GAAP) (Numerator)	$	1,551,921		$	1,550,174		$	1,462,740		$	1,445,401		$	1,387,583
Stockholders' Equity (GAAP)	$	149,140		$	142,882		$	141,590		$	139,834		$	114,846
Goodwill and Intangible Assets, Net		(9,820	)		(10,085	)		(10,349	)		(10,690	)		(11,909	)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)	$	139,320		$	132,797		$	131,241		$	129,144		$	102,937
Stockholders’ Equity to Assets (GAAP)		9.5	%		9.2	%		9.6	%		9.6	%		8.2	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		9.0	%		8.6	%		9.0	%		8.9	%		7.4	%
Common Shares Outstanding (Denominator)		5,129,921			5,141,911			5,142,901			5,118,713			5,120,678
Book Value per Common Share (GAAP)	$	29.07		$	27.79		$	27.53		$	27.32		$	22.43
Tangible Book Value per Common Share (Non-GAAP)	$	27.16		$	25.83		$	25.52		$	25.23		$	20.10

	Three Months Ended															Nine Months Ended
	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
(Dollars in thousands) (Unaudited)
Net Income (GAAP)	$	3,219		$	2,650		$	4,196		$	12,966		$	2,672		$	10,065		$	9,586
Amortization of Intangible Assets, Net		264			264			341			430			445			870			1,336
Adjusted Net Income (Non-GAAP) (Numerator)	$	3,483		$	2,914		$	4,537		$	13,396		$	3,117		$	10,935		$	10,922
Annualization Factor		3.98			4.02			4.02			3.97			3.97			1.34			1.34
Average Stockholders' Equity (GAAP)	$	145,593		$	140,664		$	140,291		$	114,327		$	117,435		$	142,261		$	116,722
Average Goodwill and Intangible Assets, Net		(9,987	)		(10,242	)		(10,553	)		(11,829	)		(12,185	)		(10,260	)		(12,627	)
Average Tangible Common Equity (Non-GAAP) (Denominator)	$	135,606		$	130,422		$	129,738		$	102,498		$	105,250		$	132,001		$	104,095
Return on Average Equity (GAAP)		8.80	%		7.58	%		12.03	%		44.99	%		9.03	%		9.45	%		10.98	%
Return on Average Tangible Common Equity (Non-GAAP)		10.22	%		8.99	%		14.07	%		51.85	%		11.75	%		11.07	%		14.03	%

	Three Months Ended															Nine Months Ended
	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)	$	19,773		$	18,939		$	17,986		$	16,905		$	15,874		$	56,699		$	45,321
Adjustment to FTE Basis		42			41			39			45			43			118			111
Interest Income (FTE) (Non-GAAP)		19,815			18,980			18,025			16,950			15,917			56,817			45,432
Interest Expense (GAAP)		8,299			7,469			6,395			5,769			5,157			22,163			11,902
Net Interest Income (FTE) (Non-GAAP)	$	11,516		$	11,511		$	11,630		$	11,181		$	10,760		$	34,654		$	33,530
Net Interest Rate Spread (GAAP)		2.36	%		2.44	%		2.67	%		2.56	%		2.54	%		2.48	%		2.80	%
Adjustment to FTE Basis		0.02			0.02			0.01			0.01			0.01			0.02			0.01
Net Interest Rate Spread (FTE) (Non-GAAP)		2.38	%		2.46	%		2.68	%		2.57	%		2.55	%		2.50	%		2.81	%
Net Interest Margin (GAAP)		3.11	%		3.18	%		3.36	%		3.19	%		3.13	%		3.21	%		3.31	%
Adjustment to FTE Basis		0.01			0.01			0.01			0.02			0.01			0.01			0.01
Net Interest Margin (FTE) (Non-GAAP)		3.12	%		3.19	%		3.37	%		3.21	%		3.14	%		3.22	%		3.32	%

	Three Months Ended															Nine Months Ended
	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
(Dollars in thousands) (Unaudited)
Income Before Income Tax Expense (GAAP)	$	3,966		$	3,210		$	5,116		$	18,309		$	3,236		$	12,292		$	11,978
Net (Recovery) Provision for Credit Losses		(41	)		(36	)		(37	)		(1,420	)		406			(114	)		917
Adjustments
Net (Gain) Loss on Securities		(245	)		31			166			9,830			37			(49	)		369
Gain on Sale of Subsidiary		(138	)		—			—			(24,578	)		—			(138	)		—
Net Gain on Disposal of Premises and Equipment		—			—			(274	)		—			—			(274	)		(11	)
Net Gain on Bank-Owned Life Insurance Claims		—			—			(915	)		—			—			(915	)		(303	)
Adjusted PPNR (Non-GAAP) (Numerator)	$	3,542		$	3,205		$	4,056		$	2,141		$	3,679		$	10,802		$	12,950
Annualization Factor		3.98			4.02			4.02			3.97			3.97			1.34			1.34
Average Assets (Denominator)	$	1,526,688		$	1,503,164		$	1,443,414		$	1,421,813		$	1,410,888		$	1,491,217		$	1,402,042
Adjusted PPNR Return on Average Assets (Non-GAAP)		0.92	%		0.86	%		1.13	%		0.60	%		1.04	%		0.97	%		1.24	%

	Three Months Ended															Nine Months Ended
	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
(Dollars in thousands, except share and per share data) (Unaudited)
Net Income (GAAP)	$	3,219		$	2,650		$	4,196		$	12,966		$	2,672		$	10,065		$	9,586
Adjustments
Net (Gain) Loss on Securities		(245	)		31			166			9,830			37			(49	)		369
Gain on Sale of Subsidiary		(138	)		—			—			(24,578	)		—			(138	)		—
Net Gain on Disposal of Premises and Equipment		—			—			(274	)		—			—			(274	)		(11	)
Net Gain on Bank-Owned Life Insurance Claims		—			—			(915	)		—			—			(915	)		(303	)
Tax effect		90			(7	)		23			4,843			(8	)		107			(75	)
Adjusted Net Income (Non-GAAP)	$	2,926		$	2,674		$	3,196		$	3,061		$	2,701		$	8,796		$	9,566
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding		5,346,750			5,152,657			5,142,286			5,135,997			5,126,546			5,328,610			5,118,279
Earnings per Common Share - Diluted (GAAP)	$	0.60		$	0.51		$	0.82		$	2.52		$	0.52		$	1.89		$	1.87
Adjusted Earnings per Common Share - Diluted (Non-GAAP)	$	0.55		$	0.52		$	0.62		$	0.60		$	0.53		$	1.65		$	1.87
Net Income (GAAP) (Numerator)	$	3,219		$	2,650		$	4,196		$	12,966		$	2,672		$	10,065		$	9,586
Annualization Factor		3.98			4.02			4.02			3.97			3.97			1.34			1.34
Average Assets (Denominator)		1,526,688			1,503,164			1,443,414			1,421,813			1,410,888			1,491,217			1,402,042
Return on Average Assets (GAAP)		0.84	%		0.71	%		1.17	%		3.62	%		0.75	%		0.90	%		0.91	%
Adjusted Net Income (Non-GAAP) (Numerator)	$	2,926		$	2,674		$	3,196		$	3,061		$	2,701		$	8,796		$	9,566
Annualization Factor		3.98			4.02			4.02			3.97			3.97			1.34			1.34
Average Assets (Denominator)		1,526,688			1,503,164			1,443,414			1,421,813			1,410,888			1,491,217			1,402,042
Adjusted Return on Average Assets (Non-GAAP)		0.76	%		0.72	%		0.89	%		0.85	%		0.76	%		0.79	%		0.91	%

	Three Months Ended															Nine Months Ended
	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
(Dollars in thousands) (Unaudited)
Net Income (GAAP) (Numerator)	$	3,219		$	2,650		$	4,196		$	12,966		$	2,672		$	10,065		$	9,586
Annualization Factor		3.98			4.02			4.02			3.97			3.97			1.34			1.34
Average Equity (GAAP) (Denominator)		145,593			140,664			140,291			114,327			117,435			142,261			116,722
Return on Average Equity (GAAP)		8.80	%		7.58	%		12.03	%		44.99	%		9.03	%		9.45	%		10.98	%
Adjusted Net Income (Non-GAAP) (Numerator)	$	2,926		$	2,674		$	3,196		$	3,061		$	2,701		$	8,796		$	9,566
Annualization Factor		3.98			4.02			4.02			3.97			3.97			1.34			1.34
Average Equity (GAAP) (Denominator)		145,593			140,664			140,291			114,327			117,435			142,261			116,722
Adjusted Return on Average Equity (Non-GAAP)		8.00	%		7.65	%		9.16	%		10.62	%		9.12	%		8.26	%		10.96	%