CB Financial Services, Inc. Announces First Quarter 2026 Financial Results and Declares Quarterly Cash Dividend

CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”), today announced its first quarter 2026 financial results.

2026 First Quarter Financial Highlights

• Total assets were $1.58 billion at March 31, 2026, an increase of $35.6 million from December 31, 2025. Strong deposit growth augmented cash balances and funded investment security purchases. The Bank continues to focus efforts on repositioning the balance sheet to maximize earnings while maintaining a stable risk profile. These strategic movements include:
  • Effectively managing cash and liquidity.
  • Redeploying repayments of indirect automobile and residential mortgage loans into higher-yielding commercial loan products. Commercial loans totaled 61.1% of the Bank’s loan portfolio at March 31, 2026 compared to 55.6% at March 31, 2025.
  • The Bank continues to strategically shift its deposit mix toward lower cost core deposit relationships and away from higher priced funding, a favorable transition driven by the ongoing onboarding of Specialty Treasury clients that began during the first quarter of 2026.
• Net interest margin (NIM) improved for the sixth consecutive quarter to 3.83% for the three months ended March 31, 2026 compared to 3.76% for the three months ended December 31, 2025. The improved NIM resulted from a reduction in the cost of funds to 1.70% from 1.78% resulting from favorable changes in the Bank’s deposit mix coupled with disciplined deposit pricing and the recent reduction in the target federal funds rate. During the three months ended March 31, 2026, Specialty Treasury deposits grew by $27.6 million primarily in noninterest bearing and low interest bearing demand deposits leading to the improvement in the Bank’s deposit mix. This was partially offset as the yield on earning assets decreased to 5.47% from 5.48% due to the effect of the recent target federal funds rate cut on asset repricing.
• Noninterest expenses increased $89,000 to $10.0 million for the three months ended March 31, 2026 compared to $9.9 million for the three months ended December 31, 2025. This increase was driven by increases in salaries and employee benefits due to higher payroll taxes and healthcare benefits, data processing due to the implementation of enhanced treasury and commercial banking platforms and occupancy expenses due to higher winter maintenance and utility costs.
• Asset quality remains strong as nonperforming loans to total loans was 0.29% at March 31, 2026.
• Book value per share and tangible book value per share (Non-GAAP) was $31.30 and $29.38, respectively at March 31, 2026. The improvements since year-end 2025 resulted from increased equity due to current period net income, partially offset by the increase in accumulated other comprehensive losses, treasury shares repurchased under the Company’s stock repurchase program and the payment of dividends.
• The Bank remains well-capitalized and is positioned for future growth.

Management Commentary

President and CEO John H. Montgomery commented, “Our first quarter results reflect meaningful progress across our core financial objectives, reflecting the strength of our strategy and the disciplined execution of our team. Net interest margin improvement was largely attributable to a lower cost of funds, driven by a more favorable deposit mix, disciplined deposit pricing, and the cumulative impact of federal funds target rate reductions. Complementing this, earning asset yields held up well as our balance sheet restructuring executed in the third quarter last year continued to insulate the portfolio against rate reductions on asset repricing, strengthening both our financial foundation and our ability to generate sustainable earnings growth. Throughout this period, we remained focused on advancing key strategic initiatives that we believe set the Company on a stronger trajectory as we move through 2026 and beyond.

While macroeconomic uncertainties persist, our approach remains grounded in prudent financial management, disciplined balance sheet positioning, and a consistent commitment to maintaining the credit quality our shareholders have come to expect. Total loans decreased by $4.4 million, or 0.4%, during the quarter, with decreases in consumer, commercial and industrial and commercial real estate loans more than offsetting increases in construction and residential real estate loans. Loan demand showed momentum during the quarter, with production totaling $30.5 million against $29.4 million in payoffs over the past three months. Our asset quality continues to be strong, with nonperforming loans representing 0.29% of total loans and the allowance for credit losses covering 309.5% of nonperforming assets at quarter-end. We remain confident in the overall health of our loan portfolio and our ability to manage risk effectively as we continue to grow.

During the first quarter, our Specialty Treasury Payments & Services program, a key pillar of our long-term strategy to drive sustainable revenue growth and expand our core deposit base, delivered meaningful early results. Building on the full deployment completed in the fourth quarter last year, we made measurable progress onboarding new customers and deepening relationships within the program, generating $28 million in new deposits since year-end. We remain confident this high-value investment will enhance our franchise's strength, efficiency and scalability while generating significant revenue growth over time. While bringing new customers fully onto the platform requires time, we are encouraged by the pipeline and the quality of relationships we are building.

We continue to build out our mortgage lending capabilities as a core pillar of our growth strategy, deepening customer relationships and diversifying revenue while creating meaningful cross-selling opportunities within our primary market. This initiative is a natural extension of our relationship-banking model and reinforces our broader lending and deposit growth objectives. While we pursue new avenues for growth, our commitment to the local customers and communities remains as strong as ever — they are the foundation of who we are and central to everything we do.

As we approach our 125th anniversary on July 1, 2026, we will mark this milestone through our Generations of Trust marketing campaign, reinforcing the longevity, stability, and community dedication that have defined our institution across five generations. We believe this initiative will strengthen brand awareness and deepen customer relationships in the markets we serve, supporting our long-term growth objectives.”

Dividend Declaration

The Company’s Board of Directors declared a $0.28 quarterly cash dividend per outstanding share of common stock, payable on or about May 29, 2026, to stockholders of record as of the close of business on May 15, 2026.

2026 First Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income increased $2.6 million, or 22.6%, to $13.9 million for the three months ended March 31, 2026 compared to $11.3 million for the three months ended March 31, 2025.

• Net Interest Margin (NIM) (GAAP) increased to 3.83% for the three months ended March 31, 2026 compared to 3.27% for the three months ended March 31, 2025. Fully tax equivalent (FTE) NIM (Non-GAAP) increased 60 basis points (“bps”) to 3.88% for the three months ended March 31, 2026 compared to 3.28% for the three months ended March 31, 2025.
• Interest and dividend income increased $1.8 million, or 10.1%, to $19.7 million for the three months ended March 31, 2026 compared to $17.8 million for the three months ended March 31, 2025.
  • Interest income on loans increased $1.4 million, or 9.8%, to $16.0 million for the three months ended March 31, 2026 compared to $14.5 million for the three months ended March 31, 2025. The average balance of loans increased $76.9 million to $1.15 billion from $1.08 billion, causing a $1.1 million increase in interest income on loans. Additionally, the average yield on loans increased 14 bps to 5.64% from 5.50% despite a 75 bp reduction in the federal funds target rate since September 2025. While this led to the downward repricing of adjustable rate loans, the impact was negated 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. The increase in the average yield caused a $378,000 increase in interest income on loans.
  • Interest income on investment securities increased $638,000, or 23.0%, to $3.4 million for the three months ended March 31, 2026 compared to $2.8 million for the three months ended March 31, 2025 driven by a 96 bp increase in average yields, coupled with a $6.8 million increase in average balances. The increase in yield was primarily due to the third quarter 2025 implementation of a balance sheet repositioning strategy of the Bank’s portfolio of available-for-sale investment securities in which $129.6 million in book value of lower-yielding investment securities with an average yield of 2.87% were sold for an after-tax realized loss of $9.3 million. Investment securities sold included $121.1 million of mortgage-backed securities/collateralized mortgage obligations issued by the U.S. government-sponsored agencies, $5.0 million of U.S. government agency securities and $3.5 million of municipal securities. The Bank then purchased $117.8 million of higher-yielding mortgage-backed securities/collateralized mortgage obligations issued by U.S government-sponsored agencies, municipal securities, subordinated debt investments and non-agency guaranteed securitizations with an expected tax-equivalent yield of approximately 5.43%.
  • Interest income on interest-earning deposits at other banks decreased $259,000 to $200,000 for the three months ended March 31, 2026 compared to $459,000 for the three months ended March 31, 2025 driven by a 113 bp decrease in the average yield and a $17.8 million decrease in average balances. The decrease in the yield was directly related to the Federal Reserve’s reductions in the target federal funds rate while the decrease in the volume was due to the funding of loans.
• Interest expense decreased $757,000, or 11.6%, to $5.8 million for the three months ended March 31, 2026 compared to $6.5 million for the three months ended March 31, 2025.
  • Interest expense on deposits decreased $879,000, or 14.4%, to $5.2 million for the three months ended March 31, 2026 compared to $6.1 million for the three months ended March 31, 2025. The cost of interest-bearing deposits declined 43 bps to 2.03% for the three months ended March 31, 2026 from 2.46% for the three months ended March 31, 2025 due to the change in the deposit mix and the recent Federal Reserve federal funds target rate decreases. The decrease in the cost of interest-bearing deposits accounted for a $1.1 million decrease in interest expense. This was partially offset as average interest-bearing deposit balances increased $39.4 million, or 3.9%, to $1.05 billion as of March 31, 2026 compared to $1.01 billion as of March 31, 2025, primarily as the Bank grew core banking relationships, onboarded Specialty Treasury clients and strategically reduced time deposit only relationships. The increase in average balances accounted for a $221,000 increase in interest expense.

Provision for Credit Losses

A provision for credit losses of $241,000 was recorded for the three months ended March 31, 2026. The provision for credit losses on loans was $228,000 and was primarily due to additional reserves required for individually assessed loans requiring specific reserves and charge-offs. Additionally, the provision for credit losses on unfunded commitments was $13,000 and was due to an increase in unfunded commitments. This compared to a recovery for credit losses of $40,000 recorded for the three months ended March 31, 2025 as the provision for credit losses on loans was $68,000 primarily due to qualitative adjustments on economic factors, and the provision for credit losses on unfunded commitments was $108,000 due to a decrease in unfunded commitments and a decrease in funding rates.

Noninterest Income

Noninterest income increased $175,000, or 22.2%, to $962,000 for the three months ended March 31, 2026, compared to $787,000 for the three months ended March 31, 2025 primarily due to a $92,000 increase in service fees related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts and a $77,000 increase in net gain on securities due to net losses of $69,000 recognized for the three months ended March 31, 2025 related primarily to the sale of equity securities.

Noninterest Expense

Noninterest expense increased $210,000, or 2.1%, to $10.0 million for the three months ended March 31, 2026 compared to $9.8 million for the three months ended March 31, 2025. Data processing expense increased $145,000 due to the implementation of enhanced treasury and commercial banking platforms in late 2025. Contracted services increased $95,000 due to outsourced information security services and robotic process automation projects. Other noninterest expense increased $76,000 due to increases in travel, meals and entertainment expenses related to sales activities and increases in dues and subscriptions and printing and office supplies expenses. Partially offsetting these increases, occupancy expense decreased $94,000 due to certain property management cost savings initiatives implemented in 2025 and salaries and benefits decreased $39,000. During the three months ended March 31, 2025, the Bank recorded $1.0 million of one-time non-recurring expenses related to a reduction in force. Excluding these one-time charges, salaries and benefits increased $1.0 million primarily due to revenue producing treasury and commercial banking personnel additions, merit increases and higher benefit compensation costs.

Statement of Financial Condition Review

Assets

Total assets increased $35.6 million, or 2.3%, to $1.58 billion at March 31, 2026, compared to $1.55 billion at December 31, 2025.

• Cash and due from banks increased $23.9 million, or 75.3%, to $55.5 million at March 31, 2026, compared to $31.7 million at December 31, 2025, driven by deposit growth.
• Securities increased $15.6 million, or 5.6%, to $295.5 million at March 31, 2026, compared to $279.9 million at December 31, 2025. This was primarily due to $26.0 million of security purchases, partially offset by $8.8 million of repayments on amortizing securities and a $1.9 million increase in unrealized losses on the portfolio.

Loans and Credit Quality

• Total loans decreased $4.4 million, or 0.4%, to $1.158 billion compared to $1.162 billion, and included decreases in consumer, commercial and industrial and commercial real estate loans of $6.2 million, $3.4 million and $2.2 million, respectively, partially offset by increases in construction and residential real estate loans of $6.0 million and $1.5 million, respectively. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to 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. Excluding the $5.8 million decrease in indirect automobile loans, total loans increased $1.4 million, or 0.1%. Loan production totaled $30.5 million while $29.4 million of loans were paid off since December 31, 2025.
• Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $3.3 million at March 31, 2026 and $5.3 million at December 31, 2025. Nonperforming loans to total loans ratio was 0.29% at March 31, 2026 and 0.46% at December 31, 2025. The decrease in nonperforming loans was due to the full repayment of a $2.0 million commercial real estate loan which was placed on nonaccrual status in the fourth quarter of 2025.
• The allowance for credit losses (ACL) was $10.3 million at March 31, 2026 and $10.1 million at December 31, 2025. As a result, the ACL to total loans was 0.89% at March 31, 2026 and 0.87% at December 31, 2025. During the current year, the Company recorded a net provision for credit losses of $241,000. The ACL to nonperforming assets was 309.5% at March 31, 2026 and 190.5% at December 31, 2025.
• Net charge-offs for the three months ended March 31, 2026 were $41,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the three months ended March 31, 2025 were $54,000, or 0.02% of average loans on an annualized basis.

Liabilities

Total liabilities increased $34.4 million, or 2.5%, to $1.42 billion at March 31, 2026 compared to $1.39 billion at December 31, 2025.

Deposits

• Total deposits increased $35.6 million, or 2.7%, to $1.38 billion as of March 31, 2026 compared to $1.34 billion at December 31, 2025. Interest-bearing demand, non interest-bearing demand and savings deposits increased $27.5 million, $9.3 million and $2.9 million, respectively, while time deposits decreased $4.1 million. This favorable change in the deposit mix occurred as the Bank began onboarding Specialty Treasury clients during the three months ended March 31, 2026. The Bank continues to focus on building core banking relationships while strategically reducing higher priced funding. Brokered time deposits totaled $98.5 million as of March 31, 2026 and December 31, 2025, all of which mature within three months and were utilized to fund the purchase of floating rate CLO securities. At March 31, 2026, FDIC insured deposits totaled approximately 58.8% of total deposits while an additional 16.7% of total deposits were collateralized with investment securities.

Stockholders’ Equity

Stockholders’ equity increased $1.2 million, or 0.8%, to $158.8 million at March 31, 2026, compared to $157.5 million at December 31, 2025. The key factors positively impacting stockholders’ equity were $3.9 million of net income for the current year and $341,000 of shares issued as a result of stock option exercises, partially offset by a $1.5 million increase in accumulated other comprehensive loss resulting from market interest rate changes, the payment of $1.4 million in dividends and $292,000 of treasury shares purchased under the stock repurchase program since December 31, 2025.

Book value per share

Book value per common share was $31.30 at March 31, 2026 compared to $31.28 at December 31, 2025, an increase of $0.02.

Tangible book value per common share (Non-GAAP) was $29.38 at March 31, 2026, compared to $29.35 at December 31, 2025, an increase of $0.03.

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.cb.bank.

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.

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.