CB Financial Services, Inc. Announces Fourth Quarter and Full Year 2025 Financial Results and Declares Quarterly Cash Dividend Increase of 8%

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 fourth quarter and 2025 financial results.

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands, except per share data) (Unaudited)

Net Income (Loss) (GAAP)

4,742

(5,696

)

3,949

1,909

2,529

4,903

12,594

Net Income Adjustments

(943

)

9,623

—

808

(562

)

9,489

(1,830

)

Adjusted Net Income (Non-GAAP) (1)

3,799

3,927

3,949

2,717

1,967

14,392

10,764

Earnings (Loss) per Common Share - Diluted (GAAP)

0.89

(1.07

)

0.74

0.35

0.46

0.92

2.38

Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)

0.72

0.74

0.50

0.35

2.71

2.03

Income (Loss) Before Income Tax Expense (GAAP)

5,270

(7,020

)

4,715

2,336

3,051

5,300

15,343

Net Provision (Recovery) for Credit Losses

362

259

(40

)

683

589

570

Pre-Provision Net Revenue (“PPNR”)

5,632

(6,761

)

4,723

2,296

3,734

5,889

15,913

Net Income Adjustments

(765

)

11,752

—

1,023

(711

)

12,011

(2,086

)

Adjusted PPNR (Non-GAAP) (1)

4,867

4,991

4,723

3,319

3,023

17,900

13,827

(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.

2025 Fourth Quarter Financial Highlights

Management Commentary

President and CEO John H. Montgomery commented, “We delivered solid fourth quarter results, benefiting from net interest margin expansion and the balance sheet optimization efforts completed in the prior quarter. Our loan portfolio expanded with strong growth in relationship-driven commercial lending, while we achieved healthy deposit growth and an improved deposit mix through our continued focus on building strong core banking relationships. Net interest margin expansion was driven primarily by a reduced cost of funds, reflecting a more favorable deposit mix, disciplined deposit pricing and recent federal funds rate cuts. Additionally, the yield on earning assets increased, supported by our balance sheet repositioning, which effectively mitigated the effects of rate reductions on asset repricing.

Given economic uncertainties, we remain committed to prudent financial management through a cautious approach to our balance sheet and rigorous oversight of our lending operations. Since year-end 2024, total loans have increased by $69.6 million, or 6.4%, with commercial real estate and commercial and industrial loans as the main drivers of expansion. This growth is somewhat tempered by reductions in consumer, construction and residential real estate lending segments. The uptick in borrowing activity we observed during the quarter was promising, with loan production totaling $204.6 million against $97.6 million in payoffs over the past year. Our asset quality continues to be strong, with nonperforming loans representing 0.46% of total loans and allowance for credit losses covering 190.5% of nonperforming assets at quarter-end. These results reflect our ongoing commitment to stringent risk assessment and high lending standards.

During the fourth quarter, we completed the build out of 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. With the necessary treasury products, talent, and technology infrastructure now in place, the program is fully deployed. While onboarding new customers will take time, we anticipate meaningful progress during the first quarter. We view this as a high-value investment that we expect will enhance our franchise's strength, efficiency and scalability while generating significant revenue growth over time.

As part of our growth strategy for 2026, we're investing in building out our mortgage lending group to capture greater market share in this important product category. Expanding our mortgage capabilities in our primary market will enhance customer relationships, diversify our revenue streams and create new cross-selling opportunities. We are committed to becoming a leader in the mortgage market, and this initiative aligns with our relationship-banking model and extends our core deposit and lending capabilities.

As we look ahead to 2026, we remain confident in our strategic direction and believe we are well-positioned to sustain momentum and drive continued earnings growth.”

Dividend Declaration

The Company’s Board of Directors has approved a 7.7% increase in the regular quarterly dividend by declaring a $0.28 quarterly cash dividend per outstanding share of common stock, payable on or about February 27, 2026, to stockholders of record as of the close of business on February 13, 2026.

2025 Fourth Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income increased $2.3 million, or 19.9%, to $13.8 million for the three months ended December 31, 2025 compared to $11.5 million for the three months ended December 31, 2024.

Provision for Credit Losses

A provision for credit losses of $362,000 was recorded for the three months ended December 31, 2025. The provision for credit losses on loans was $265,000 and was primarily due to additional reserves required for overall loan growth and charge-offs, partially offset by favorable changes in maximum loss rates utilized in the allowance model. Additionally, the provision for credit losses on unfunded commitments was $97,000 and was due to an increase in unfunded commitments. This compared to a provision for credit losses of $683,000 recorded for the three months ended December 31, 2024 as the provision for credit losses on loans was $483,000 primarily due to loan growth, increases in the loss rate and qualitative adjustments on construction and land development loans and an increase in qualitative adjustments on residential real estate loans, partially offset by a payoff of an impaired loan, and the provision for credit losses on unfunded commitments was $200,000 due to an increase in the loss rate on construction loans.

Noninterest Income

Noninterest income increased $74,000, or 4.5%, to $1.73 million for the three months ended December 31, 2025, compared to $1.66 million for the three months ended December 31, 2024 primarily due to a $125,000 increase in service fees related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts and a $40,000 gain on the sale of assets related to the sale of a Bank storage facility recognized during the three months ended December 31, 2025, partially offset by a $94,000 decrease in other income related to hedge fees.

Noninterest Expense

Noninterest expense increased $470,000, or 5.0%, to $9.9 million for the three months ended December 31, 2025 compared to $9.5 million for the three months ended December 31, 2024. Salaries and benefits increased $584,000, or 11.1%, to $5.8 million primarily due to revenue producing staff additions, merit increases and higher incentive compensation costs, partially offset by savings realized due to the reduction in force implemented earlier this year. Other noninterest expense increased $85,000 due to increases in travel, conference and entertainment expenses related to sales activities and an increase in check fraud losses. Equipment expense increased $69,000 due to higher depreciation and maintenance expenses associated with interactive teller machines, security system upgrades and other equipment placed into service in late 2024. These increases were partially offset as intangible amortization decreased $88,000 as the Bank’s core deposit intangibles were fully amortized in 2024. Occupancy expense decreased $79,000 due to certain property management cost savings initiatives implemented in 2025. Data processing expense decreased $42,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform during mid-2024.

Statement of Financial Condition Review

Assets

Total assets increased $66.1 million, or 4.5%, to $1.55 billion at December 31, 2025, compared to $1.48 billion at December 31, 2024.

Loans and Credit Quality

Liabilities

Total liabilities increased $56.0 million, or 4.2%, to $1.4 billion at December 31, 2025 compared to $1.3 billion at December 31, 2024.

Deposits

Stockholders’ Equity

Stockholders’ equity increased $10.2 million, or 6.9%, to $157.5 million at December 31, 2025, compared to $147.4 million at December 31, 2024. The key factors positively impacting stockholders’ equity was a $13.8 million decrease in accumulated other comprehensive loss resulting primarily from the securities repositioning strategy, $2.6 million of shares issued as a result of stock option exercises and $4.9 million of net income for the current year, partially offset by $6.8 million of treasury shares purchased under the stock repurchase program and the payment of $5.1 million in dividends since December 31, 2024.

Book value per share

Book value per common share was $31.28 at December 31, 2025 compared to $28.71 at December 31, 2024, an increase of $2.57.

Tangible book value per common share (Non-GAAP) was $29.35 at December 31, 2025, compared to $26.82 at December 31, 2024, an increase of $2.53.

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

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Assets

Cash and Due From Banks

31,693

55,890

64,506

61,274

49,572

Securities

279,895

272,559

267,171

258,699

262,153

Loans Held for Sale

—

107

512

230

900

Loans

Real Estate:

Residential

329,237

333,430

329,324

334,744

337,990

Commercial

552,180

539,395

513,197

497,316

485,513

Construction

45,419

38,905

40,680

54,597

54,705

Commercial and Industrial

161,081

143,919

138,221

107,419

112,047

Consumer

42,876

49,581

57,376

61,854

70,508

Other

31,467

38,156

32,026

32,564

31,863

Total Loans

1,162,260

1,143,386

1,110,824

1,088,494

1,092,626

Allowance for Credit Losses

(10,116

)

(10,146

)

(9,722

)

(9,819

)

(9,805

)

Loans, Net

1,152,144

1,133,240

1,101,102

1,078,675

1,082,821

Premises and Equipment, Net

19,646

19,896

20,223

20,392

20,708

Bank-Owned Life Insurance

24,812

24,660

24,506

24,358

24,209

Goodwill

9,732

Accrued Interest Receivable and Other Assets

29,771

29,430

30,232

30,096

31,469

Total Assets

1,547,693

1,545,514

1,517,984

1,483,456

1,481,564

Liabilities

Deposits

Noninterest-Bearing Demand Accounts

291,745

291,882

278,685

267,392

267,896

Interest-Bearing Demand Accounts

357,134

365,976

353,448

341,212

316,764

Money Market Accounts

209,166

206,166

225,141

228,005

231,458

Savings Accounts

169,307

169,005

172,021

176,722

170,530

Time Deposits

312,453

301,391

280,137

267,766

296,869

Total Deposits

1,339,805

1,334,420

1,309,432

1,281,097

1,283,517

Other Borrowings

34,758

34,748

34,738

34,728

34,718

Accrued Interest Payable and Other Liabilities

15,593

23,881

25,452

19,342

15,951

Total Liabilities

1,390,156

1,393,049

1,369,622

1,335,167

1,334,186

Stockholders’ Equity

157,537

152,465

148,362

148,289

147,378

Total Liabilities and Stockholders’ Equity

1,547,693

1,545,514

1,517,984

1,483,456

1,481,564

(Dollars in thousands, except share and per share data) (Unaudited)

Three Months Ended

Year Ended

Selected Operating Data

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

Interest and Dividend Income:

Loans, Including Fees

16,077

15,973

15,492

14,528

14,930

62,070

59,383

Securities:

Taxable

3,035

2,848

2,860

2,777

3,096

11,520

11,533

Tax-Exempt

415

146

—

561

—

Dividends

110

Other Interest and Dividend Income

458

367

399

514

1,378

1,737

5,105

Total Interest and Dividend Income

19,992

19,341

18,760

17,847

19,431

75,939

76,131

Interest Expense:

Deposits

5,802

5,810

5,721

6,111

7,492

23,445

28,441

Short-Term Borrowings

—

108

—

199

—

Other Borrowings

364

391

402

407

1,520

1,622

Total Interest Expense

6,166

6,242

6,220

6,536

7,899

25,164

30,063

Net Interest and Dividend Income

13,826

13,099

12,540

11,311

11,532

50,775

46,068

Provision (Recovery) for Credit Losses - Loans

265

336

(136

)

483

534

379

Provision (Recovery) for Credit Losses - Unfunded Commitments

(77

)

144

(108

)

200

191

Net Interest and Dividend Income After Net Provision (Recovery) for Credit Losses

13,464

12,840

12,532

11,351

10,849

50,186

45,498

Noninterest Income:

Service Fees

585

574

559

462

460

2,180

1,680

Insurance Commissions

Other Commissions

252

251

Net Gain on Sale of Loans

105

Net Gain (Loss) on Securities

(11,752

)

—

(69

)

(11,807

)

Net Gain on Purchased Tax Credits

Gain on Sale of Subsidiary

—

138

Net Gain on Disposal of Premises and Equipment

—

274

Income from Bank-Owned Life Insurance

152

154

148

149

152

603

594

Net Gain on Bank-Owned Life Insurance Claims

—

915

Other Income

867

229

127

155

961

1,379

1,484

Total Noninterest Income (Loss)

1,729

(10,677

)

931

787

1,655

(7,230

)

5,494

Noninterest Expense:

Salaries and Employee Benefits

5,842

5,247

5,088

6,036

5,258

22,213

18,821

Occupancy

573

574

616

750

652

2,513

3,096

Equipment

382

367

372

330

313

1,452

1,155

Data Processing

790

708

761

797

832

3,055

3,308

Federal Deposit Insurance Corporation Assessment

171

173

203

176

172

724

639

Pennsylvania Shares Tax

242

306

143

257

301

948

1,161

Contracted Services

481

371

382

310

522

1,543

1,623

Legal and Professional Fees

234

411

117

262

268

1,024

985

Advertising

192

132

124

119

137

566

484

Other Real Estate Owned

—

Amortization of Intangible Assets

—

958

Other Expense

961

886

941

765

876

3,553

3,369

Total Noninterest Expense

9,923

9,183

8,748

9,802

9,453

37,656

35,649

Income (Loss) Before Income Tax Expense

5,270

(7,020

)

4,715

2,336

3,051

5,300

15,343

Income Tax Expense (Benefit)

528

(1,324

)

766

427

522

397

2,749

Net Income (Loss)

4,742

(5,696

)

3,949

1,909

2,529

4,903

12,594

Three Months Ended

Year Ended

Per Common Share Data

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

Dividends Per Common Share

0.26

0.25

1.02

1.00

Earnings (Loss) Per Common Share - Basic

0.95

(1.14

)

0.79

0.37

0.49

0.97

2.45

(Loss) Earnings Per Common Share - Diluted

0.89

(1.07

)

0.74

0.35

0.46

0.92

2.38

Weighted Average Common Shares Outstanding - Basic

5,015,025

4,985,188

5,022,813

5,125,577

5,126,782

5,036,706

5,134,092

Weighted Average Common Shares Outstanding - Diluted

5,304,685

5,319,594

5,332,026

5,471,006

5,544,829

5,306,916

5,302,522

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Common Shares Outstanding

5,036,509

4,998,383

4,972,300

5,099,069

5,132,654

Book Value Per Common Share

31.28

30.50

29.84

29.08

28.71

Tangible Book Value per Common Share (1)

29.35

28.56

27.88

27.17

26.82

Stockholders’ Equity to Assets

10.2

9.9

9.8

10.0

9.9

Tangible Common Equity to Tangible Assets (1)

9.6

9.3

9.2

9.4

Three Months Ended

Year Ended

Selected Financial Ratios (2)

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

Return on Average Assets

1.22

(1.50

1.06

0.53

0.65

0.33

0.84

Return on Average Equity

12.14

(15.15

)

10.76

5.24

6.80

3.27

8.77

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

134.05

134.42

135.33

134.70

133.33

134.62

134.78

Average Equity to Average Assets

10.02

9.93

9.88

10.07

9.63

9.97

9.56

Net Interest Rate Spread

3.18

3.05

2.91

2.61

2.41

2.95

2.47

Net Interest Rate Spread (FTE) (1)

3.23

3.08

2.93

2.63

2.42

2.97

2.48

Net Interest Margin

3.76

3.64

3.54

3.27

3.12

3.55

3.19

Net Interest Margin (FTE) (1)

3.80

3.67

3.55

3.28

3.13

3.58

3.20

Net Charge-Offs (Recoveries) to Average Loans

0.10

(0.03

)

(0.01

)

0.02

0.06

0.02

0.03

Efficiency Ratio

63.79

379.15

64.94

81.02

71.68

86.48

69.14

Asset Quality Ratios

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Allowance for Credit Losses to Total Loans

0.87

0.89

0.88

0.90

Allowance for Credit Losses to Nonperforming Loans (3)

190.51

464.99

550.20

414.48

548.07

Delinquent and Nonaccrual Loans to Total Loans (4)

0.89

0.59

0.49

0.54

0.72

Nonperforming Loans to Total Loans (3)

0.46

0.19

0.16

0.22

0.16

Nonperforming Assets to Total Assets (5)

0.34

0.15

0.13

0.16

0.12

Capital Ratios (6)

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Common Equity Tier 1 Capital (to Risk Weighted Assets)

13.92

14.19

15.28

14.94

14.78

Tier 1 Capital (to Risk Weighted Assets)

13.92

14.19

15.28

14.94

14.78

Total Capital (to Risk Weighted Assets)

14.89

15.20

16.29

15.95

15.79

Tier 1 Leverage (to Adjusted Total Assets)

10.15

10.06

10.49

10.36

9.98

(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

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

December 31, 2024

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)

1,138,734

16,145

5.62

1,120,036

16,034

5.68

1,098,698

15,549

5.68

1,075,083

14,584

5.50

1,066,304

14,975

5.59

Debt Securities

Taxable

241,449

3,035

5.03

259,196

2,848

4.40

284,499

2,860

4.02

278,362

2,777

3.99

284,002

3,096

4.36

Tax-Exempt

35,243

525

5.96

12,461

185

5.94

—

Equity Securities

1,000

2.80

1,000

2.80

1,000

3.60

2,674

4.19

2,693

4.01

Interest-Earning Deposits at Banks

41,222

384

3.73

29,682

293

3.95

33,564

331

3.94

45,056

459

4.07

114,245

1,338

4.68

Other Interest-Earning Assets

2,998

9.79

3,972

7.39

3,767

7.24

3,196

6.98

3,070

5.18

Total Interest-Earning Assets

1,460,646

20,170

5.48

1,426,347

19,441

5.41

1,421,528

18,817

5.31

1,404,371

17,903

5.17

1,470,314

19,476

5.27

Noninterest-Earning Assets

85,605

75,480

67,513

63,324

65,786

Total Assets

1,546,251

1,501,827

1,489,041

1,467,695

1,536,100

Liabilities and Stockholders' Equity:

Interest-Bearing Liabilities:

Interest-Bearing Demand Accounts

367,382

1,850

2.00

350,232

1,835

2.08

334,752

1,677

2.01

317,799

1,526

1.95

328,129

1,838

2.23

Money Market Accounts

212,212

1,232

2.30

211,660

1,401

2.63

238,195

1,747

2.94

230,634

1,726

3.04

227,606

1,821

3.18

Savings Accounts

168,853

0.11

171,188

0.10

174,055

0.10

172,322

0.10

170,612

0.10

Time Deposits

306,395

2,675

3.46

287,646

2,531

3.49

259,506

2,255

3.49

285,093

2,818

4.01

341,686

3,788

4.41

Total Interest-Bearing Deposits

1,054,842

5,802

2.18

1,020,726

5,810

2.26

1,006,508

5,721

2.28

1,005,848

6,111

2.46

1,068,033

7,492

2.79

Short-Term Borrowings

—

4.71

5,655

4.77

9,143

108

4.74

1,985

4.70

—

Other Borrowings

34,754

364

4.16

34,743

364

4.16

34,733

391

4.52

34,723

402

4.70

34,713

407

4.66

Total Interest-Bearing Liabilities

1,089,612

6,166

2.25

1,061,124

6,242

2.33

1,050,384

6,220

2.38

1,042,556

6,536

2.54

1,102,746

7,899

2.85

Noninterest-Bearing Demand Deposits

285,269

271,462

270,729

265,522

267,598

Total Funding and Cost of Funds

1,374,881

1.78

1,332,586

1.86

1,321,113

1.89

1,308,078

2.03

1,370,344

2.29

Other Liabilities

16,367

20,120

20,789

11,854

17,883

Total Liabilities

1,391,248

1,352,706

1,341,902

1,319,932

1,388,227

Stockholders' Equity

155,003

149,121

147,139

147,763

147,873

Total Liabilities and Stockholders' Equity

1,546,251

1,501,827

1,489,041

1,467,695

1,536,100

Net Interest Income (FTE) (Non-GAAP) (3)

14,004

13,199

12,597

11,367

11,577

Net Interest-Earning Assets (4)

371,034

365,223

371,144

361,815

367,568

Net Interest Rate Spread (FTE)

(Non-GAAP) (3) (5)

3.23

3.08

2.93

2.63

2.42

Net Interest Margin (FTE)

(Non-GAAP) (3)(6)

3.80

3.67

3.55

3.28

3.13

(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

Year Ended

December 31, 2025

December 31, 2024

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)

1,108,344

62,313

5.62

1,073,601

59,544

5.55

Debt Securities

Taxable

265,757

11,520

4.33

268,604

11,533

4.29

Exempt From Federal Tax

12,024

710

5.90

—

Marketable Equity Securities

1,413

3.61

2,693

110

4.08

Interest-Earning Deposits at Banks

37,349

1,467

3.93

96,474

4,831

5.01

Other Interest-Earning Assets

3,484

270

7.75

3,142

274

8.72

Total Interest-Earning Assets

1,428,371

76,331

5.34

1,444,514

76,292

5.28

Noninterest-Earning Assets

73,211

57,986

Total Assets

1,501,582

1,502,500

Liabilities and Stockholders' Equity:

Interest-Bearing Liabilities:

Interest-Bearing Demand Accounts

342,698

6,888

2.01

326,073

7,414

2.27

Savings Accounts

171,594

171

0.10

180,647

202

0.11

Money Market Accounts

223,093

6,107

2.74

215,864

6,706

3.11

Time Deposits

284,727

10,279

3.61

314,510

14,119

4.49

Total Interest-Bearing Deposits

1,022,112

23,445

2.29

1,037,094

28,441

2.74

Short-Term Borrowings

4,199

199

4.74

—

Other Borrowings

34,738

1,520

4.38

34,697

1,622

4.67

Total Interest-Bearing Liabilities

1,061,049

25,164

2.37

1,071,791

30,063

2.80

Noninterest-Bearing Demand Deposits

273,295

270,528

Total Funding and Cost of Funds

1,334,344

1.89

1,342,319

2.24

Other Liabilities

17,463

16,559

Total Liabilities

1,351,807

1,358,878

Stockholders' Equity

149,775

143,622

Total Liabilities and Stockholders' Equity

1,501,582

1,502,500

Net Interest Income (FTE) (Non-GAAP) (2)

51,167

46,229

Net Interest-Earning Assets (3)

367,322

372,723

Net Interest Rate Spread (FTE) (Non-GAAP) (2)(4)

2.97

2.48

Net Interest Margin (FTE) (Non-GAAP) (2)(5)

3.58

3.20

(1)

Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable.

(2)

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.

(3)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4)

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.

(5)

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.

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

(Dollars in thousands, except share and per share data) (Unaudited)

Total Assets (GAAP)

1,547,693

1,545,514

1,517,984

1,483,456

1,481,564

Goodwill and Intangible Assets, Net

(9,732

)

(9,732

)

(9,732

)

(9,732

)

(9,732

)

Tangible Assets (Non-GAAP) (Numerator)

1,537,961

1,535,782

1,508,252

1,473,724

1,471,832

Stockholders' Equity (GAAP)

157,537

152,465

148,362

148,289

147,378

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)

147,805

142,733

138,630

138,557

137,646

Stockholders’ Equity to Assets (GAAP)

10.2

9.9

9.8

10.0

9.9

Tangible Common Equity to Tangible Assets (Non-GAAP)

9.6

9.3

9.2

9.4

Common Shares Outstanding (Denominator)

5,036,509

4,998,383

4,972,300

5,099,069

5,132,654

Book Value per Common Share (GAAP)

31.28

30.50

29.84

29.08

28.71

Tangible Book Value per Common Share (Non-GAAP)

29.35

28.56

27.88

27.17

26.82

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands) (Unaudited)

Net Income (Loss) (GAAP)

4,742

(5,696

)

3,949

1,909

2,529

4,903

12,594

Amortization of Intangible Assets, Net

—

958

Adjusted Net Income (Loss) (Non-GAAP) (Numerator)

4,742

(5,696

)

3,949

1,909

2,617

4,903

13,552

Annualization Factor

3.97

4.01

4.06

3.98

1.00

Average Stockholders' Equity (GAAP)

155,003

149,121

147,139

147,763

147,873

149,775

143,622

Average Goodwill and Intangible Assets, Net

(9,732

)

(9,732

)

(9,732

)

(9,732

)

(9,758

)

(9,732

)

(10,134

)

Average Tangible Common Equity (Non-GAAP) (Denominator)

145,271

139,389

137,407

138,031

138,115

140,043

133,488

Return on Average Equity (GAAP)

12.14

(15.15

10.76

5.24

6.80

3.27

8.77

Return on Average Tangible Common Equity (Non-GAAP)

12.95

(16.21

11.53

5.61

7.54

3.50

10.15

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands) (Unaudited)

Interest Income (GAAP)

19,992

19,341

18,760

17,847

19,431

75,939

76,131

Adjustment to FTE Basis

178

100

392

161

Interest Income (FTE) (Non-GAAP)

20,170

19,441

18,817

17,903

19,476

76,331

76,292

Interest Expense (GAAP)

6,166

6,242

6,220

6,536

7,899

25,164

30,063

Net Interest Income (FTE) (Non-GAAP)

14,004

13,199

12,597

11,367

11,577

51,167

46,229

Net Interest Rate Spread (GAAP)

3.18

3.05

2.91

2.61

2.41

2.95

2.47

Adjustment to FTE Basis

0.05

0.03

0.02

0.01

0.02

0.01

Net Interest Rate Spread (FTE) (Non-GAAP)

3.23

3.08

2.93

2.63

2.42

2.97

2.48

Net Interest Margin (GAAP)

3.76

3.64

3.54

3.27

3.12

3.55

3.19

Adjustment to FTE Basis

0.04

0.03

0.01

0.03

0.01

Net Interest Margin (FTE) (Non-GAAP)

3.80

3.67

3.55

3.28

3.13

3.58

3.20

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands) (Unaudited)

Income (Loss) Before Income Tax Expense (GAAP)

5,270

(7,020

)

4,715

2,336

3,051

5,300

15,343

Net Provision (Recovery) for Credit Losses

362

259

(40

)

683

589

570

PPNR (Non-GAAP)

5,632

(6,761

)

4,723

2,296

3,734

5,889

15,913

Adjustments

Net (Gain) Loss on Securities

(14

)

11,752

—

)

11,807

(51

)

Gain on Sale of Subsidiary

—

(138

)

Net Gain on Disposal of Premises and Equipment

(40

)

—

(40

)

(274

)

Earn-out Payment Related to the Sale of EU

(711

)

—

(49

)

(708

)

(759

)

(708

)

Net Gain on Bank-Owned Life Insurance Claims

—

(915

)

Reduction in Force Expenses

—

1,003

—

1,003

—

Adjusted PPNR (Non-GAAP) (Numerator)

4,867

4,991

4,723

3,319

3,023

17,900

13,827

Annualization Factor

3.97

4.01

4.06

3.98

1.00

Average Assets (Denominator)

1,546,251

1,501,827

1,489,041

1,467,695

1,536,100

1,501,582

1,502,500

Adjusted PPNR Return on Average Assets (Non-GAAP)

1.25

1.32

1.27

0.92

0.78

1.19

0.92

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands, except share and per share data) (Unaudited)

Net Income (Loss) (GAAP)

4,742

(5,696

)

3,949

1,909

2,529

4,903

12,594

Adjustments

Net (Gain) Loss on Securities

(14

)

11,752

—

)

11,807

(51

)

Gain on Sale of Subsidiary

—

(138

)

Net Gain on Disposal of Premises and Equipment

(40

)

—

(40

)

(274

)

Earn-out Payment Related to the Sale of EU

(711

)

—

(49

)

(708

)

(759

)

(708

)

Net Gain on Bank-Owned Life Insurance Claims

—

(915

)

Reduction in Force Expenses

—

1,003

—

1,003

—

Tax effect

(178

)

(2,129

)

—

(215

)

149

(2,522

)

256

Adjusted Net Income (Non-GAAP)

3,799

3,927

3,949

2,717

1,967

14,392

10,764

Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding

5,304,685

5,319,594

5,332,026

5,471,006

5,544,829

5,306,916

5,302,522

Earnings (Loss) per Common Share - Diluted (GAAP)

0.89

(1.07

)

0.74

0.35

0.46

0.92

2.38

Adjusted Earnings per Common Share - Diluted (Non-GAAP)

0.72

0.74

0.50

0.35

2.71

2.03

Net Income (Loss) (GAAP) (Numerator)

4,742

(5,696

)

3,949

1,909

2,529

4,903

12,594

Annualization Factor

3.97

4.01

4.06

3.98

1.00

Average Assets (Denominator)

1,546,251

1,501,827

1,489,041

1,467,695

1,536,100

1,501,582

1,502,500

Return on Average Assets (GAAP)

1.22

(1.50

1.06

0.53

0.65

0.33

0.84

Adjusted Net Income (Non-GAAP) (Numerator)

3,799

3,927

3,949

2,717

1,967

14,392

10,764

Annualization Factor

3.97

4.01

4.06

3.98

1.00

Average Assets (Denominator)

1,546,251

1,501,827

1,489,041

1,467,695

1,536,100

1,501,582

1,502,500

Adjusted Return on Average Assets (Non-GAAP)

0.97

1.04

1.06

0.75

0.51

0.96

0.72

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands) (Unaudited)

Net Income (Loss) (GAAP) (Numerator)

4,742

(5,696

)

3,949

1,909

2,529

4,903

12,594

Annualization Factor

3.97

4.01

4.06

3.98

1.00

Average Equity (GAAP) (Denominator)

155,003

149,121

147,139

147,763

147,873

149,775

143,622

Return on Average Equity (GAAP)

12.14

(15.15

10.76

5.24

6.80

3.27

8.77

Adjusted Net Income (Non-GAAP) (Numerator)

3,799

3,927

3,949

2,717

1,967

14,392

10,764

Annualization Factor

3.97

4.01

4.06

3.98

1.00

Average Equity (GAAP) (Denominator)

155,003

149,121

147,139

147,763

147,873

149,775

143,622

Adjusted Return on Average Equity (Non-GAAP)

9.72

10.45

10.76

7.46

5.29

9.61

7.49

Three Months Ended

Year Ended

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

12/31/25

12/31/24

(Dollars in thousands) (Unaudited)

Noninterest Expense (GAAP) (Numerator)

9,923

9,183

8,748

9,802

9,453

37,656

35,649

Net Interest and Dividend Income (GAAP)

13,826

13,099

12,540

11,311

11,532

50,775

46,068

Noninterest Income (Loss) (GAAP)

1,729

(10,677

)

931

787

1,655

(7,230

)

5,494

Operating Revenue (GAAP) (Denominator)

15,555

2,422

13,471

12,098

13,187

43,545

51,562

Efficiency Ratio (GAAP)

63.79

379.15

64.94

81.02

71.68

86.48

69.14

Noninterest Expense (GAAP)

9,923

9,183

8,748

9,802

9,453

37,656

35,649

Adjustments:

Reduction in Force Expenses

—

(1,003

)

—

(1,003

)

—

Amortization of Intangible Assets

—

(88

)

—

(958

)

Adjusted Noninterest Expense (Non-GAAP) (Numerator)

9,923

9,183

8,748

8,799

9,365

36,653

34,691

Net Interest and Dividend Income (GAAP)

13,826

13,099

12,540

11,311

11,532

50,775

46,068

Noninterest Income (Loss) (GAAP)

1,729

(10,677

)

931

787

1,655

(7,230

)

5,494

Adjustments:

Net (Gain) Loss on Securities

(14

)

11,752

—

)

11,807

(51

)

Gain on Sale of Branches

—

(138

)

Net Gain on Disposal of Premises and Equipment

(40

)

—

(40

)

(274

)

Earn-out Payment Related to the Sale of EU

(711

)

—

(49

)

(708

)

(759

)

(708

)

Net Gain on Bank-Owned Life Insurance Claims

—

(915

)

Adjusted Noninterest Income (Non-GAAP)

964

1,075

931

807

944

3,778

3,408

Adjusted Operating Revenue (Non-GAAP) (Denominator)

14,790

14,174

13,471

12,118

12,476

54,553

49,476

Adjusted Efficiency Ratio (Non-GAAP)

67.09

64.79

64.94

72.61

75.06

67.19

70.12