CB Financial Services, Inc. Announces Second Quarter 2026 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 second quarter and year-to-date 2026 financial results.
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands, except per share data) (Unaudited)
Net Income (Loss) (GAAP)
$
4,301
$
3,867
$
4,742
$
(5,696
)
$
3,949
$
8,168
$
5,858
Net Income Adjustments
14
(13
)
(943
)
9,623
—
1
808
Adjusted Net Income (Non-GAAP) (1)
$
4,315
$
3,854
$
3,799
$
3,927
$
3,949
$
8,169
$
6,666
Earnings (Loss) per Common Share - Diluted (GAAP)
$
0.80
$
0.73
$
0.89
$
(1.07
)
$
0.74
$
1.54
$
1.09
Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)
$
0.81
$
0.72
$
0.72
$
0.74
$
0.74
$
1.54
$
1.24
Income (Loss) Before Income Tax Expense (GAAP)
$
5,099
$
4,581
$
5,270
$
(7,020
)
$
4,715
$
9,680
$
7,051
Net Provision (Recovery) for Credit Losses
17
241
362
259
8
259
(32
)
Pre-Provision Net Revenue (“PPNR”)
$
5,116
$
4,822
$
5,632
$
(6,761
)
$
4,723
$
9,939
$
7,019
Net Income Adjustments
18
(16
)
(765
)
11,752
—
2
1,023
Adjusted PPNR (Non-GAAP) (1)
$
5,134
$
4,806
$
4,867
$
4,991
$
4,723
$
9,941
$
8,042
(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.
2026 Second Quarter Financial Highlights
Management Commentary
President and CEO John H. Montgomery commented, “Our team’s disciplined execution and well-grounded strategy came through clearly in our second quarter performance, driving substantive progress towards the Company’s financial goals. Net interest income grew during the quarter, even as net interest margin declined due to elevated cash balances and slightly higher deposit costs. This growth was supported by a $69.5 million increase in organic deposits during the quarter, reflecting the continued strength of our core deposit franchise. Earning asset yields remained resilient, continuing to benefit from the balance sheet restructuring executed in the third quarter last year, which helps insulates the portfolio against rate-related repricing pressure. We remain focused on positioning our balance sheet to protect our financial foundation and support substantial earnings growth over time.
Amid ongoing economic volatility, we continue to prioritize prudent financial discipline, maintain a resilient balance sheet, and consistently adhere to the credit quality standards our shareholders rely on. Total loans increased by $17.5 million, or 1.5%, during the first half of 2026, with increases in commercial real estate and construction loans countering the decreases in consumer and residential real estate loans. Our asset quality continues to be strong, with nonperforming loans representing 0.29% of total loans and the allowance for credit losses covering 308.5% of nonperforming assets at quarter-end. We continue to have strong conviction in the fundamental soundness of our loan portfolio and our capacity to manage risk prudently amid continued expansion.
The second quarter marked a key milestone as our Specialty Treasury Payments & Services program officially reached full operational capacity, a testament to the disciplined execution behind this pillar of our long-term growth strategy. With the platform now fully up and running and the initial customer onboarding behind us, we are already seeing it strengthen our core deposit base and open new avenues for sustainable revenue, with $84.1 million in new deposits since year-end. We remain confident in this program’s ability to enhance the Company’s efficiency, scalability, and earnings power over time. As the bulk of new relationships come fully onto the platform, we are encouraged by the strength of the pipeline and the quality of engagement we are seeing across our customer base.
As part of our broader growth strategy, we are expanding our capabilities in mortgage lending, an effort that deepens customer relationships, diversifies our revenue base, and unlocks cross-selling opportunities across our primary market. Because it’s grounded in our relationship-banking model, this work also reinforces our larger lending and deposit growth goals. Even as we explore new growth opportunities, our dedication to the local customers and communities we serve hasn’t wavered— they remain the cornerstone of our business, and the driving force behind every decision we make.”
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 August 28, 2026, to stockholders of record as of the close of business on August 14, 2026.
2026 Second Quarter Financial Review
Net Interest and Dividend Income
Net interest and dividend income increased $2.0 million, or 15.9%, to $14.5 million for the three months ended June 30, 2026 compared to $12.5 million for the three months ended June 30, 2025.
Provision for Credit Losses
A provision for credit losses of $17,000 was recorded for the three months ended June 30, 2026. The provision for credit losses on loans was $157,000 and was primarily due to loan growth. This was partially offset by a $140,000 reversal of provision for credit losses on unfunded commitments primarily due to a decrease in unfunded commitments. This compared to a provision for credit losses of $8,000 recorded for the three months ended June 30, 2025 as the provision for credit losses on loans was a $136,000 recovery primarily due to a reduction of reserves required for individually assessed loans and changes in loan concentrations, partially offset by additional reserve required for overall loan growth and a change in qualitative factors relating to economic conditions, and the provision for credit losses on unfunded commitments was $144,000 due to an increase in unfunded commitments and an increase in funding rates.
Noninterest Income
Noninterest income increased $41,000, or 4.4%, to $972,000 for the three months ended June 30, 2026, compared to $931,000 for the three months ended June 30, 2025 primarily due to a $23,000 increase in service fees related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts and a $19,000 increase in net gain on sale of loans.
Noninterest Expense
Noninterest expense increased $1.6 million, or 18.8%, to $10.4 million for the three months ended June 30, 2026 compared to $8.7 million for the three months ended June 30, 2025. 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. Data processing expense increased $379,000 due to the implementation of enhanced treasury and commercial banking platforms in late 2025 and early 2026. Pennsylvania shares tax increased $124,000 due to $179,000 of refunds received in 2025 on amended returns filed for prior years. Professional fees increased $81,000 due to the timing of internal audit services and higher legal fees associated with treasury services. Contracted services increased $54,000 due to outsourced information security services.
Statement of Financial Condition Review
Assets
Total assets increased $108.7 million, or 7.0%, to $1.66 billion at June 30, 2026, compared to $1.55 billion at December 31, 2025.
Loans and Credit Quality
Liabilities
Total liabilities increased $104.2 million, or 7.5%, to $1.49 billion at June 30, 2026 compared to $1.39 billion at December 31, 2025.
Deposits
Borrowed Funds
Stockholders’ Equity
Stockholders’ equity increased $4.6 million, or 2.9%, to $162.1 million at June 30, 2026, compared to $157.5 million at December 31, 2025. The key factors positively impacting stockholders’ equity were $8.2 million of net income for the current year and $551,000 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 $2.8 million in dividends and $306,000 of treasury shares purchased under the stock repurchase program since December 31, 2025.
Book value per share
Book value per common share was $31.91 at June 30, 2026 compared to $31.28 at December 31, 2025, an increase of $0.63.
Tangible book value per common share (Non-GAAP) was $29.99 at June 30, 2026, compared to $29.35 at December 31, 2025, an increase of $0.64.
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.
CB FINANCIAL SERVICES, INC.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
(Dollars in thousands, except share and per share data) (Unaudited)
Selected Financial Condition Data
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
Assets
Cash and Due From Banks
$
76,090
$
55,549
$
31,693
$
55,890
$
64,506
Securities
325,554
295,452
279,895
272,559
267,171
Loans Held for Sale
—
—
—
107
512
Loans
Real Estate:
Residential
327,003
330,761
329,237
333,430
329,324
Commercial
571,760
550,029
552,180
539,395
513,197
Construction
58,930
51,394
45,419
38,905
40,680
Commercial and Industrial
160,399
157,694
161,081
143,919
138,221
Consumer
31,108
36,720
42,876
49,581
57,376
Other
30,521
31,239
31,467
38,156
32,026
Total Loans
1,179,721
1,157,837
1,162,260
1,143,386
1,110,824
Allowance for Credit Losses
(10,451
)
(10,303
)
(10,116
)
(10,146
)
(9,722
)
Loans, Net
1,169,270
1,147,534
1,152,144
1,133,240
1,101,102
Premises and Equipment, Net
19,069
19,428
19,646
19,896
20,223
Bank-Owned Life Insurance
25,127
24,964
24,812
24,660
24,506
Goodwill
9,732
9,732
9,732
9,732
9,732
Accrued Interest Receivable and Other Assets
31,578
30,633
29,771
29,430
30,232
Total Assets
$
1,656,420
$
1,583,292
$
1,547,693
$
1,545,514
$
1,517,984
Liabilities
Deposits
Noninterest-Bearing Demand Accounts
$
286,623
$
301,053
$
291,745
$
291,882
$
278,685
Interest-Bearing Demand Accounts
460,197
384,599
357,134
365,976
353,448
Money Market Accounts
220,812
209,258
209,166
206,166
225,141
Savings Accounts
168,948
172,172
169,307
169,005
172,021
Time Deposits
209,847
209,855
213,953
202,891
201,136
Total Organic Deposits
1,346,427
1,276,937
1,241,305
1,235,920
1,230,431
Brokered Deposits
33,633
98,500
98,500
98,500
79,001
Total Deposits
1,380,060
1,375,437
1,339,805
1,334,420
1,309,432
Short-Term Borrowings
65,000
—
—
—
—
Other Borrowings
34,778
34,768
34,758
34,748
34,738
Accrued Interest Payable and Other Liabilities
14,485
14,336
15,593
23,881
25,452
Total Liabilities
1,494,323
1,424,541
1,390,156
1,393,049
1,369,622
Stockholders’ Equity
162,097
158,751
157,537
152,465
148,362
Total Liabilities and Stockholders’ Equity
$
1,656,420
$
1,583,292
$
1,547,693
$
1,545,514
$
1,517,984
(Dollars in thousands, except share and per share data) (Unaudited)
Three Months Ended
Six Months Ended
Selected Operating Data
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
Interest and Dividend Income:
Loans, Including Fees
$
16,177
$
15,957
$
16,077
$
15,973
$
15,492
$
32,134
$
30,020
Securities:
Taxable
3,351
2,999
3,035
2,848
2,860
6,351
5,637
Tax-Exempt
452
416
415
146
—
868
—
Dividends
7
7
7
7
9
14
37
Other Interest and Dividend Income
919
272
458
367
399
1,192
912
Total Interest and Dividend Income
20,906
19,651
19,992
19,341
18,760
40,559
36,606
Interest Expense:
Deposits
5,940
5,232
5,802
5,810
5,721
11,172
11,833
Short-Term Borrowings
70
188
—
68
108
258
131
Other Borrowings
362
359
364
364
391
721
792
Total Interest Expense
6,372
5,779
6,166
6,242
6,220
12,151
12,756
Net Interest and Dividend Income
14,534
13,872
13,826
13,099
12,540
28,408
23,850
Provision (Recovery) for Credit Losses - Loans
157
228
265
336
(136
)
385
(68
)
(Recovery) Provision for Credit Losses - Unfunded Commitments
(140
)
13
97
(77
)
144
(126
)
36
Net Interest and Dividend Income After Net Provision (Recovery) for Credit Losses
14,517
13,631
13,464
12,840
12,532
28,149
23,882
Noninterest Income:
Service Fees
582
554
585
574
559
1,136
1,021
Insurance Commissions
1
1
1
1
1
2
2
Other Commissions
74
75
60
63
66
150
129
Net Gain on Sale of Loans
45
11
6
50
26
56
49
Net (Loss) Gain on Securities
(18
)
8
14
(11,752
)
—
(10
)
(69
)
Net Gain on Purchased Tax Credits
10
10
4
4
4
21
7
Net Gain on Disposal of Premises and Equipment
—
—
40
—
—
—
—
Income from Bank-Owned Life Insurance
163
152
152
154
148
315
297
Other Income
115
151
867
229
127
266
282
Total Noninterest Income (Loss)
972
962
1,729
(10,677
)
931
1,936
1,718
Noninterest Expense:
Salaries and Employee Benefits
6,120
5,997
5,842
5,247
5,088
12,117
11,124
Occupancy
615
656
573
574
616
1,271
1,366
Equipment
364
349
382
367
372
713
702
Data Processing
1,140
942
790
708
761
2,081
1,558
Federal Deposit Insurance Corporation Assessment
176
173
171
173
203
349
379
Pennsylvania Shares Tax
267
286
242
306
143
554
400
Contracted Services
436
405
481
371
382
841
692
Legal and Professional Fees
198
221
234
411
117
420
378
Advertising
115
142
192
132
124
258
242
Other Real Estate Owned
—
—
55
8
1
—
2
Other Expense
959
841
961
886
941
1,801
1,706
Total Noninterest Expense
10,390
10,012
9,923
9,183
8,748
20,405
18,549
Income (Loss) Before Income Tax Expense
5,099
4,581
5,270
(7,020
)
4,715
9,680
7,051
Income Tax Expense (Benefit)
798
714
528
(1,324
)
766
1,512
1,193
Net Income (Loss)
$
4,301
$
3,867
$
4,742
$
(5,696
)
$
3,949
$
8,168
$
5,858
Three Months Ended
Six Months Ended
Per Common Share Data
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
Dividends Per Common Share
$
0.28
$
0.28
$
0.26
$
0.26
$
0.25
$
0.56
$
0.50
Earnings (Loss) Per Common Share - Basic
0.85
0.77
0.95
(1.14
)
0.79
1.61
1.15
Earnings (Loss) Per Common Share - Diluted
0.80
0.73
0.89
(1.07
)
0.74
1.54
1.09
Weighted Average Common Shares Outstanding - Basic
5,073,474
5,053,586
5,015,025
4,985,188
5,022,813
5,063,585
5,073,911
Weighted Average Common Shares Outstanding - Diluted
5,353,959
5,318,874
5,304,685
5,319,594
5,332,026
5,319,645
5,387,924
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
Common Shares Outstanding
5,080,438
5,072,183
5,036,509
4,998,383
4,972,300
Book Value Per Common Share
$
31.91
$
31.30
$
31.28
$
30.50
$
29.84
Tangible Book Value per Common Share (1)
29.99
29.38
29.35
28.56
27.88
Stockholders’ Equity to Assets
9.8
%
10.0
%
10.2
%
9.9
%
9.8
%
Tangible Common Equity to Tangible Assets (1)
9.3
9.5
9.6
9.3
9.2
Three Months Ended
Six Months Ended
Selected Financial Ratios (2)
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
Return on Average Assets
1.04
%
1.01
%
1.22
%
(1.50
)%
1.06
%
1.02
%
0.80
%
Return on Average Equity
10.77
9.84
12.14
(15.15
)
10.76
10.31
8.01
Average Interest-Earning Assets to Average Interest-Bearing Liabilities
133.48
133.68
134.05
134.42
135.33
133.58
135.02
Average Equity to Average Assets
9.64
10.24
10.02
9.93
9.88
9.93
9.97
Net Interest Rate Spread
3.14
3.29
3.18
3.05
2.91
3.22
2.76
Net Interest Rate Spread (FTE) (1)
3.18
3.34
3.23
3.08
2.93
3.27
2.78
Net Interest Margin
3.68
3.83
3.76
3.64
3.54
3.75
3.40
Net Interest Margin (FTE) (1)
3.73
3.88
3.80
3.67
3.55
3.80
3.42
Net Charge-Offs (Recoveries) to Average Loans
—
0.01
0.10
(0.03
)
(0.01
)
0.01
—
Efficiency Ratio
67.01
67.49
63.79
379.15
64.94
67.25
72.55
Asset Quality Ratios
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
Allowance for Credit Losses to Total Loans
0.89
%
0.89
%
0.87
%
0.89
%
0.88
%
Allowance for Credit Losses to Nonperforming Loans (3)
308.47
309.49
190.51
464.99
550.20
Delinquent and Nonaccrual Loans to Total Loans (4)
0.69
0.54
0.86
0.59
0.49
Nonperforming Loans to Total Loans (3)
0.29
0.29
0.46
0.19
0.16
Nonperforming Assets to Total Assets (5)
0.20
0.21
0.34
0.15
0.13
Capital Ratios (6)
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
Common Equity Tier 1 Capital (to Risk Weighted Assets)
14.22
%
14.70
%
13.92
%
14.19
%
15.28
%
Tier 1 Capital (to Risk Weighted Assets)
14.22
14.70
13.92
14.19
15.28
Total Capital (to Risk Weighted Assets)
15.18
15.71
14.89
15.20
16.29
Tier 1 Leverage (to Adjusted Total Assets)
9.94
10.34
10.15
10.06
10.49
(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
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
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)
$
1,153,305
$
16,235
5.65
%
$
1,151,941
$
16,023
5.64
%
$
1,138,734
$
16,145
5.62
%
$
1,120,036
$
16,034
5.68
%
$
1,098,698
$
15,549
5.68
%
Debt Securities
Taxable
287,012
3,351
4.67
249,917
2,999
4.80
241,449
3,035
5.03
259,196
2,848
4.40
284,499
2,860
4.02
Tax-Exempt
38,526
572
5.94
35,218
527
5.99
35,243
525
5.96
12,461
185
5.94
—
—
—
Equity Securities
1,000
7
2.80
1,000
7
2.80
1,000
7
2.80
1,000
7
2.80
1,000
9
3.60
Interest-Earning Deposits at Banks
99,855
845
3.38
27,236
200
2.94
41,222
384
3.73
29,682
293
3.95
33,564
331
3.94
Other Interest-Earning Assets
3,278
74
9.05
3,874
72
7.54
2,998
74
9.79
3,972
74
7.39
3,767
68
7.24
Total Interest-Earning Assets
1,582,976
21,084
5.34
1,469,186
19,828
5.47
1,460,646
20,170
5.48
1,426,347
19,441
5.41
1,421,528
18,817
5.31
Noninterest-Earning Assets
78,718
87,352
85,605
75,480
67,513
Total Assets
$
1,661,694
$
1,556,538
$
1,546,251
$
1,501,827
$
1,489,041
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts
$
458,395
$
2,328
2.04
%
$
365,729
$
1,642
1.82
%
$
367,382
$
1,850
2.00
%
$
350,232
$
1,835
2.08
%
$
334,752
$
1,677
2.01
%
Money Market Accounts
221,065
1,200
2.18
209,181
1,104
2.14
212,212
1,232
2.30
211,660
1,401
2.63
238,195
1,747
2.94
Savings Accounts
170,276
51
0.12
169,568
40
0.10
168,853
45
0.11
171,188
43
0.10
174,055
42
0.10
Time Deposits
210,258
1,566
2.99
213,645
1,604
3.04
207,895
1,653
3.15
201,651
1,587
3.12
209,516
1,710
3.27
Total Organic Interest-Bearing Deposits
1,059,994
5,145
1.95
958,123
4,390
1.86
956,342
4,780
1.98
934,731
4,866
2.07
956,518
5,176
2.17
Brokered Deposits
84,053
795
3.79
87,136
842
3.92
98,500
1,022
4.12
85,995
944
4.36
49,990
545
4.37
Total Interest-Bearing Deposits
1,144,047
5,940
2.08
1,045,259
5,232
2.03
1,054,842
5,802
2.18
1,020,726
5,810
2.26
1,006,508
5,721
2.28
Short-Term Borrowings
7,089
70
3.96
18,990
188
4.01
16
—
4.71
5,655
68
4.77
9,143
108
4.74
Other Borrowings
34,774
362
4.18
34,764
359
4.19
34,754
364
4.16
34,743
364
4.16
34,733
391
4.52
Total Interest-Bearing Liabilities
1,185,910
6,372
2.16
1,099,013
5,779
2.13
1,089,612
6,166
2.25
1,061,124
6,242
2.33
1,050,384
6,220
2.38
Noninterest-Bearing Demand Deposits
301,859
283,546
285,269
271,462
270,729
Total Funding and Cost of Funds
1,487,769
1.72
1,382,559
1.70
1,374,881
1.78
1,332,586
1.86
1,321,113
1.89
Other Liabilities
13,686
14,564
16,367
20,120
20,789
Total Liabilities
1,501,455
1,397,123
1,391,248
1,352,706
1,341,902
Stockholders' Equity
160,239
159,415
155,003
149,121
147,139
Total Liabilities and Stockholders' Equity
$
1,661,694
$
1,556,538
$
1,546,251
$
1,501,827
$
1,489,041
Net Interest Income (FTE)
(Non-GAAP) (3)
$
14,712
$
14,049
$
14,004
$
13,199
$
12,597
Net Interest-Earning Assets (4)
397,066
370,173
371,034
365,223
371,144
Net Interest Rate Spread (FTE)
(Non-GAAP) (3) (5)
3.18
%
3.34
%
3.23
%
3.08
%
2.93
%
Net Interest Margin (FTE)
(Non-GAAP) (3)(6)
3.73
3.88
3.80
3.67
3.55
(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
Six Months Ended
June 30, 2026
June 30, 2025
Average Balance
Interest and Dividends
Yield /Cost
Average Balance
Interest and Dividends
Yield / Cost
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (1)
$
1,152,627
$
32,259
5.64
%
$
1,086,955
$
30,132
5.59
%
Debt Securities
Taxable
268,567
6,351
4.73
281,447
5,637
4.01
Exempt From Federal Tax
36,881
1,099
5.96
—
—
—
Marketable Equity Securities
1,000
14
2.80
1,832
37
4.04
Interest-Earning Deposits at Banks
63,746
1,046
3.28
39,278
789
4.02
Other Interest-Earning Assets
3,574
146
8.24
3,484
123
7.12
Total Interest-Earning Assets
1,526,395
40,915
5.41
1,412,996
36,718
5.24
Noninterest-Earning Assets
83,011
65,758
Total Assets
$
1,609,406
$
1,478,754
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Accounts
$
412,318
$
3,970
1.94
%
$
326,322
$
3,203
1.98
%
Savings Accounts
169,924
91
0.11
173,193
83
0.10
Money Market Accounts
215,155
2,304
2.16
234,436
3,473
2.99
Time Deposits
211,942
3,171
3.02
228,651
4,127
3.64
Total Organic Interest-Bearing Deposits
1,009,339
9,536
1.91
962,602
10,886
2.28
Brokered Deposits
85,586
1,636
3.85
43,578
947
4.38
Total Interest-Bearing Deposits
1,094,925
11,172
2.06
1,006,180
11,833
2.37
Short-Term Borrowings
13,008
258
4.00
5,584
131
4.73
Other Borrowings
34,769
721
4.18
34,728
792
4.60
Total Interest-Bearing Liabilities
1,142,702
12,151
2.14
1,046,492
12,756
2.46
Noninterest-Bearing Demand Deposits
292,753
268,140
Total Funding and Cost of Funds
1,435,455
1.71
1,314,632
1.96
Other Liabilities
14,121
16,673
Total Liabilities
1,449,576
1,331,305
Stockholders' Equity
159,830
147,449
Total Liabilities and Stockholders' Equity
$
1,609,406
$
1,478,754
Net Interest Income (FTE) (Non-GAAP) (2)
28,764
23,962
Net Interest-Earning Assets (3)
383,693
366,504
Net Interest Rate Spread (FTE) (Non-GAAP) (2)(4)
3.27
%
2.78
%
Net Interest Margin (FTE) (Non-GAAP) (2)(5)
3.80
3.42
(1)
Annualized based on six 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.
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
(Dollars in thousands, except share and per share data) (Unaudited)
Total Assets (GAAP)
$
1,656,420
$
1,583,292
$
1,547,693
$
1,545,514
$
1,517,984
Goodwill and Intangible Assets, Net
(9,732
)
(9,732
)
(9,732
)
(9,732
)
(9,732
)
Tangible Assets (Non-GAAP) (Numerator)
$
1,646,688
$
1,573,560
$
1,537,961
$
1,535,782
$
1,508,252
Stockholders' Equity (GAAP)
$
162,097
$
158,751
$
157,537
$
152,465
$
148,362
Goodwill and Intangible Assets, Net
(9,732
)
(9,732
)
(9,732
)
(9,732
)
(9,732
)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)
$
152,365
$
149,019
$
147,805
$
142,733
$
138,630
Stockholders’ Equity to Assets (GAAP)
9.8
%
10.0
%
10.2
%
9.9
%
9.8
%
Tangible Common Equity to Tangible Assets (Non-GAAP)
9.3
%
9.5
%
9.6
%
9.3
%
9.2
%
Common Shares Outstanding (Denominator)
5,080,438
5,072,183
5,036,509
4,998,383
4,972,300
Book Value per Common Share (GAAP)
$
31.91
$
31.30
$
31.28
$
30.50
$
29.84
Tangible Book Value per Common Share (Non-GAAP)
$
29.99
$
29.38
$
29.35
$
28.56
$
27.88
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands) (Unaudited)
Net Income (Loss) (GAAP)
$
4,301
$
3,867
$
4,742
$
(5,696
)
$
3,949
$
8,168
$
5,858
Annualization Factor
4.01
4.06
3.97
3.97
4.01
2.02
2.02
Average Stockholders' Equity (GAAP)
$
160,239
$
159,415
$
155,003
$
149,121
$
147,139
$
159,830
$
147,449
Average Goodwill and Intangible Assets, Net
(9,732
)
(9,732
)
(9,732
)
(9,732
)
(9,732
)
(9,732
)
(9,732
)
Average Tangible Common Equity (Non-GAAP) (Denominator)
$
150,507
$
149,683
$
145,271
$
139,389
$
137,407
$
150,098
$
137,717
Return on Average Equity (GAAP)
10.77
%
9.84
%
12.14
%
(15.15
)%
10.76
%
10.31
%
8.01
%
Return on Average Tangible Common Equity (Non-GAAP)
11.46
%
10.48
%
12.95
%
(16.21
)%
11.53
%
10.97
%
8.58
%
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands) (Unaudited)
Interest Income (GAAP)
$
20,906
$
19,651
$
19,992
$
19,341
$
18,760
$
40,559
$
36,606
Adjustment to FTE Basis
178
177
178
100
57
356
112
Interest Income (FTE) (Non-GAAP)
21,084
19,828
20,170
19,441
18,817
40,915
36,718
Interest Expense (GAAP)
6,372
5,779
6,166
6,242
6,220
12,151
12,756
Net Interest Income (FTE) (Non-GAAP)
$
14,712
$
14,049
$
14,004
$
13,199
$
12,597
$
28,764
$
23,962
Net Interest Rate Spread (GAAP)
3.14
%
3.29
%
3.18
%
3.05
%
2.91
%
3.22
%
2.76
%
Adjustment to FTE Basis
0.04
0.05
0.05
0.03
0.02
0.05
0.02
Net Interest Rate Spread (FTE) (Non-GAAP)
3.18
%
3.34
%
3.23
%
3.08
%
2.93
%
3.27
%
2.78
%
Net Interest Margin (GAAP)
3.68
%
3.83
%
3.76
%
3.64
%
3.54
%
3.75
%
3.40
%
Adjustment to FTE Basis
0.05
0.05
0.04
0.03
0.01
0.05
0.02
Net Interest Margin (FTE) (Non-GAAP)
3.73
%
3.88
%
3.80
%
3.67
%
3.55
%
3.80
%
3.42
%
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands) (Unaudited)
Income (Loss) Before Income Tax Expense (GAAP)
$
5,099
$
4,581
$
5,270
$
(7,020
)
$
4,715
$
9,680
$
7,051
Net Provision (Recovery) for Credit Losses
17
241
362
259
8
259
(32
)
PPNR (Non-GAAP)
5,116
4,822
5,632
(6,761
)
4,723
9,939
7,019
Adjustments
Net (Gain) Loss on Securities
18
(8
)
(14
)
11,752
—
10
69
Net Gain on Disposal of Premises and Equipment
—
—
(40
)
—
—
—
—
Earn-out Payment Related to the Sale of EU
—
(8
)
(711
)
—
—
(8
)
(49
)
Reduction in Force Expenses
—
—
—
—
1,003
Adjusted PPNR (Non-GAAP) (Numerator)
$
5,134
$
4,806
$
4,867
$
4,991
$
4,723
$
9,941
$
8,042
Annualization Factor
4.01
4.06
3.97
3.97
4.01
2.02
2.02
Average Assets (Denominator)
$
1,661,694
$
1,556,538
$
1,546,251
$
1,501,827
$
1,489,041
$
1,609,406
$
1,478,754
Adjusted PPNR Return on Average Assets (Non-GAAP)
1.24
%
1.25
%
1.25
%
1.32
%
1.27
%
1.25
%
1.10
%
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands, except share and per share data) (Unaudited)
Net Income (Loss) (GAAP)
$
4,301
$
3,867
$
4,742
$
(5,696
)
$
3,949
$
8,168
$
5,858
Adjustments
Net (Gain) Loss on Securities
18
(8
)
(14
)
11,752
—
10
69
Net Gain on Disposal of Premises and Equipment
—
—
(40
)
—
—
—
—
Earn-out Payment Related to the Sale of EU
—
(8
)
(711
)
—
—
(8
)
(49
)
Reduction in Force Expenses
—
—
—
—
1,003
Tax effect
(4
)
3
(178
)
(2,129
)
—
(1
)
(215
)
Adjusted Net Income (Non-GAAP)
$
4,315
$
3,854
$
3,799
$
3,927
$
3,949
$
8,169
$
6,666
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding
5,353,959
5,318,874
5,304,685
5,319,594
5,332,026
5,319,645
5,387,924
Earnings (Loss) per Common Share - Diluted (GAAP)
$
0.80
$
0.73
$
0.89
$
(1.07
)
$
0.74
$
1.54
$
1.09
Adjusted Earnings per Common Share - Diluted (Non-GAAP)
$
0.81
$
0.72
$
0.72
$
0.74
$
0.74
$
1.54
$
1.24
Net Income (Loss) (GAAP) (Numerator)
$
4,301
$
3,867
$
4,742
$
(5,696
)
$
3,949
$
8,168
$
5,858
Annualization Factor
4.01
4.06
3.97
3.97
4.01
2.02
2.02
Average Assets (Denominator)
1,661,694
1,556,538
1,546,251
1,501,827
1,489,041
1,609,406
1,478,754
Return on Average Assets (GAAP)
1.04
%
1.01
%
1.22
%
(1.50
)%
1.06
%
1.02
%
0.80
%
Adjusted Net Income (Non-GAAP) (Numerator)
$
4,315
$
3,854
$
3,799
$
3,927
$
3,949
$
8,169
$
6,666
Annualization Factor
4.01
4.06
3.97
3.97
4.01
2.02
2.02
Average Assets (Denominator)
1,661,694
1,556,538
1,546,251
1,501,827
1,489,041
1,609,406
1,478,754
Adjusted Return on Average Assets (Non-GAAP)
1.04
%
1.00
%
0.97
%
1.04
%
1.06
%
1.02
%
0.91
%
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands) (Unaudited)
Net Income (Loss) (GAAP) (Numerator)
$
4,301
$
3,867
$
4,742
$
(5,696
)
$
3,949
$
8,168
$
5,858
Annualization Factor
4.01
4.06
3.97
3.97
4.01
2.02
2.02
Average Equity (GAAP) (Denominator)
160,239
159,415
155,003
149,121
147,139
159,830
147,449
Return on Average Equity (GAAP)
10.77
%
9.84
%
12.14
%
(15.15
)%
10.76
%
10.31
%
8.01
%
Adjusted Net Income (Non-GAAP) (Numerator)
$
4,315
$
3,854
$
3,799
$
3,927
$
3,949
$
8,169
$
6,666
Annualization Factor
4.01
4.06
3.97
3.97
4.01
2.02
2.02
Average Equity (GAAP) (Denominator)
160,239
159,415
155,003
149,121
147,139
159,830
147,449
Adjusted Return on Average Equity (Non-GAAP)
10.80
%
9.80
%
9.72
%
10.45
%
10.76
%
10.31
%
9.12
%
Three Months Ended
Six Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
6/30/26
6/30/25
(Dollars in thousands) (Unaudited)
Noninterest Expense (GAAP) (Numerator)
$
10,390
$
10,012
$
9,923
$
9,183
$
8,748
$
20,405
$
18,549
Net Interest and Dividend Income (GAAP)
$
14,534
$
13,872
$
13,826
$
13,099
$
12,540
$
28,408
$
23,850
Noninterest Income (Loss) (GAAP)
972
962
1,729
(10,677
)
931
1,936
1,718
Operating Revenue (GAAP) (Denominator)
$
15,506
$
14,834
$
15,555
$
2,422
$
13,471
$
30,344
$
25,568
Efficiency Ratio (GAAP)
67.01
%
67.49
%
63.79
%
379.15
%
64.94
%
67.25
%
72.55
%
Noninterest Expense (GAAP)
$
10,390
$
10,012
$
9,923
$
9,183
$
8,748
$
20,405
$
18,549
Adjustments:
Reduction in Force Expenses
—
—
—
—
—
—
(1,003
)
Adjusted Noninterest Expense (Non-GAAP) (Numerator)
$
10,390
$
10,012
$
9,923
$
9,183
$
8,748
$
20,405
$
17,546
Net Interest and Dividend Income (GAAP)
$
14,534
$
13,872
$
13,826
$
13,099
$
12,540
$
28,408
$
23,850
Noninterest Income (Loss) (GAAP)
972
962
1,729
(10,677
)
931
1,936
1,718
Adjustments:
Net (Gain) Loss on Securities
18
(8
)
(14
)
11,752
—
10
69
Net Gain on Disposal of Premises and Equipment
—
—
(40
)
—
—
—
—
Earn-out Payment Related to the Sale of EU
—
(8
)
(711
)
—
—
(8
)
(49
)
Adjusted Noninterest Income (Non-GAAP)
$
990
$
946
$
964
$
1,075
$
931
$
1,938
$
1,738
Adjusted Operating Revenue (Non-GAAP) (Denominator)
$
15,524
$
14,818
$
14,790
$
14,174
$
13,471
$
30,346
$
25,588
Adjusted Efficiency Ratio (Non-GAAP)
66.93
%
67.56
%
67.09
%
64.79
%
64.94
%
67.24
%
68.57
%