CB Financial Services, Inc. (CBFV)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 headline: Net income $1.91M and GAAP diluted EPS $0.35; core/adjusted diluted EPS $0.50 as one-time $1.0M reduction-in-force (RIF) costs elevated expenses .
• Net interest margin (NIM) inflected higher to 3.27% (+15 bps QoQ) as cost of funds declined on improved deposit mix and Fed cuts; efficiency ratio rose to 81.0% on one-time costs; adjusted efficiency ~72.7% .
• Balance sheet resilient: deposits down just $2.4M QoQ to $1.281B with core deposits +$26.7M offsetting time deposits −$29.1M; nonperforming loans ticked up to 0.22% of loans but asset quality remains strong; Tier 1 leverage 10.36% .
• Versus S&P Global consensus: EPS (Primary/normalized) beat ($0.50 vs $0.38); “revenue” (S&P operating revenue proxy) missed ($12.13M vs $12.70M), driven mainly by lower noninterest income YoY and one-time items in comps . Values retrieved from S&P Global.
• Potential stock reaction catalysts: evidence of NIM stabilization/expansion, progressing deposit mix/limited wholesale funding, and RIF-driven ~$1.5M pre-tax annual cost saves run-rate; watch execution on Specialty Treasury program deposits by 4Q25 and sustained credit quality .

What Went Well and What Went Wrong

• What Went Well

  • Margin inflection: NIM rose to 3.27% from 3.12% QoQ as cost of funds fell (2.03% vs 2.29% prior) on improved mix and lower market rates; management highlighted “reduction in funding costs… more than offset the decline in asset yields” .
  • Core earnings resilience: adjusted diluted EPS $0.50 and adjusted PPNR $3.32M despite lower noninterest income and RIF costs; CEO: “a good start to the year, with an improvement in net interest margin along with solid first quarter loan production” .
  • Deposit quality/mix: core (non-time) deposits +$26.7M QoQ; insured/collateralized deposits 77.5% of total; brokered time deposits steady at $39M and maturing within three months .

• What Went Wrong

  • Expense spike from one-time RIF: noninterest expense +3.7% QoQ to $9.80M; efficiency ratio worsened to 81.0% (adjusted ~72.7%) .
  • Noninterest income down: $0.79M (−59% YoY), lacking prior-year BOLI death claim gain and sale-leaseback gain; securities losses modest ($69K) .
  • Asset quality mixed: NPL/Loans edged to 0.22% from 0.16% QoQ (driven by one residential relationship), though still low; net charge-offs 0.02% annualized .

Financial Results

Quarterly trend (actuals)

Q1 2025 vs S&P Global consensus

Balance sheet and mix

KPIs and capital

Guidance Changes

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available; themes synthesized from the company’s press release and investor presentation.

Management Commentary

• “Our first quarter operating results were a good start to the year, with an improvement in net interest margin along with solid first quarter loan production. The reduction in funding costs during the quarter more than offset the decline in asset yields, contributing to net interest margin growth” — John H. Montgomery, President & CEO .
• “We reduced our concentration of time deposits during the quarter, which also helped lower our cost of funds… Impacting earnings… were $1.0 million in one-time non-recurring expenses associated with the previously announced reduction in staff” .
• On strategy: “We made forward progress in implementing our Specialty Treasury Payments & Services program… Initial implementation… near the end of 2025… While costs… will impact operating expenses… we believe this investment… will benefit all stakeholders” .

Q&A Highlights

No Q1 2025 earnings call transcript was available; no Q&A detail to report.

Estimates Context

• S&P Global consensus (Primary EPS) $0.38 vs S&P “Primary” actual $0.50 → beat; S&P “Revenue” $12.70M vs actual $12.13M → miss; # of estimates: EPS 3, Revenue 2. Target price consensus $38 (2 estimates)*. Values retrieved from S&P Global.
• Implications: Consensus EPS likely needs upward adjustment for higher NIM trajectory and cost saves, while revenue models should reflect lower noninterest income absent prior one-offs and security gains/loss exclusions . Values retrieved from S&P Global.

Key Takeaways for Investors

• Margin turning point: QoQ NIM expansion (3.27%) with lower cost of funds signals stabilizing earnings power as deposit mix improves and rate cuts filter through .
• Core profitability under the surface: Adjusted EPS/PPNR indicate underlying momentum despite one-time RIF charges; run-rate expenses should benefit from ~$1.5M pre-tax annual savings .
• Deposits de-risked: Core deposits rising, brokered steady/short-dated, and 77.5% insured/collateralized mitigate liquidity risk; liquidity covers 272% of uninsured/non-collateralized deposits .
• Credit remains benign: Low charge-offs and modest NPL uptick leave ample loss absorption (ACL 0.90%; coverage of NPLs >4x) .
• Watch execution on Specialty Treasury buildout: Slower rollout timing but clear deposit target (~$120M by 4Q25) provides a visible growth lever; near-term opex headwinds expected as the platform is built .
• Capital/returns: Tier 1 leverage 10.36% and steady dividend ($0.25) support capital return; TBV/share accretion continues alongside repurchases .
• Trading setup: Near-term catalysts include sustained NIM expansion, evidence of core deposit growth from Treasury initiatives, and delivery of cost savings; risks include pressure on noninterest income and any deterioration in credit metrics .

Footnote: *All consensus and “Primary/Revenue” values are retrieved from S&P Global.