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

CB Financial Services, Inc. Announces First Quarter 2026 Financial Results and Declares Quarterly Cash Dividend WASHINGTON, Penn.--( BUSINESS WIRE)--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.

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

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

Net Income (Loss) (GAAP)

3,867

4,742

(5,696

)

3,949

1,909

Net Income Adjustments

(13

)

(943

)

9,623

—

808

Adjusted Net Income (Non-GAAP) (1)

3,854

3,799

3,927

3,949

2,717

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

0.73

0.89

(1.07

)

0.74

0.35

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

0.72

0.74

0.50

Income (Loss) Before Income Tax Expense (GAAP)

4,581

5,270

(7,020

)

4,715

2,336

Net Provision (Recovery) for Credit Losses

241

362

259

(40

)

Pre-Provision Net Revenue (“PPNR”)

4,822

5,632

(6,761

)

4,723

2,296

Net Income Adjustments

(16

)

(765

)

11,752

—

1,023

Adjusted PPNR (Non-GAAP) (1)

4,806

4,867

4,991

4,723

3,319

(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 First Quarter Financial Highlights

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.

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.

Loans and Credit Quality

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

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.

CB FINANCIAL SERVICES, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

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

Selected Financial Condition Data

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Assets

Cash and Due From Banks

55,549

31,693

55,890

64,506

61,274

Securities

295,452

279,895

272,559

267,171

258,699

Loans Held for Sale

—

107

512

230

Loans

Real Estate:

Residential

330,761

329,237

333,430

329,324

334,744

Commercial

550,029

552,180

539,395

513,197

497,316

Construction

51,394

45,419

38,905

40,680

54,597

Commercial and Industrial

157,694

161,081

143,919

138,221

107,419

Consumer

36,720

42,876

49,581

57,376

61,854

Other

31,239

31,467

38,156

32,026

32,564

Total Loans

1,157,837

1,162,260

1,143,386

1,110,824

1,088,494

Allowance for Credit Losses

(10,303

)

(10,116

)

(10,146

)

(9,722

)

(9,819

)

Loans, Net

1,147,534

1,152,144

1,133,240

1,101,102

1,078,675

Premises and Equipment, Net

19,428

19,646

19,896

20,223

20,392

Bank-Owned Life Insurance

24,964

24,812

24,660

24,506

24,358

Goodwill

9,732

Accrued Interest Receivable and Other Assets

30,633

29,771

29,430

30,232

30,096

Total Assets

1,583,292

1,547,693

1,545,514

1,517,984

1,483,456

Liabilities

Deposits

Noninterest-Bearing Demand Accounts

301,053

291,745

291,882

278,685

267,392

Interest-Bearing Demand Accounts

384,599

357,134

365,976

353,448

341,212

Money Market Accounts

209,258

209,166

206,166

225,141

228,005

Savings Accounts

172,172

169,307

169,005

172,021

176,722

Time Deposits

308,355

312,453

301,391

280,137

267,766

Total Deposits

1,375,437

1,339,805

1,334,420

1,309,432

1,281,097

Other Borrowings

34,768

34,758

34,748

34,738

34,728

Accrued Interest Payable and Other Liabilities

14,336

15,593

23,881

25,452

19,342

Total Liabilities

1,424,541

1,390,156

1,393,049

1,369,622

1,335,167

Stockholders’ Equity

158,751

157,537

152,465

148,362

148,289

Total Liabilities and Stockholders’ Equity

1,583,292

1,547,693

1,545,514

1,517,984

1,483,456

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

Three Months Ended

Selected Operating Data

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Interest and Dividend Income:

Loans, Including Fees

15,957

16,077

15,973

15,492

14,528

Securities:

Taxable

2,999

3,035

2,848

2,860

2,777

Tax-Exempt

416

415

146

—

Dividends

Other Interest and Dividend Income

272

458

367

399

514

Total Interest and Dividend Income

19,651

19,992

19,341

18,760

17,847

Interest Expense:

Deposits

5,232

5,802

5,810

5,721

6,111

Short-Term Borrowings

188

—

108

Other Borrowings

359

364

391

402

Total Interest Expense

5,779

6,166

6,242

6,220

6,536

Net Interest and Dividend Income

13,872

13,826

13,099

12,540

11,311

Provision (Recovery) for Credit Losses - Loans

228

265

336

(136

)

Provision (Recovery) for Credit Losses - Unfunded Commitments

(77

)

144

(108

)

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

13,631

13,464

12,840

12,532

11,351

Noninterest Income:

Service Fees

554

585

574

559

462

Insurance Commissions

Other Commissions

Net Gain on Sale of Loans

Net Gain (Loss) on Securities

(11,752

)

—

(69

)

Net Gain on Purchased Tax Credits

Net Gain on Disposal of Premises and Equipment

—

Income from Bank-Owned Life Insurance

152

154

148

149

Other Income

151

867

229

127

155

Total Noninterest Income (Loss)

962

1,729

(10,677

)

931

787

Noninterest Expense:

Salaries and Employee Benefits

5,997

5,842

5,247

5,088

6,036

Occupancy

656

573

574

616

750

Equipment

349

382

367

372

330

Data Processing

942

790

708

761

797

Federal Deposit Insurance Corporation Assessment

173

171

173

203

176

Pennsylvania Shares Tax

286

242

306

143

257

Contracted Services

405

481

371

382

310

Legal and Professional Fees

221

234

411

117

262

Advertising

142

192

132

124

119

Other Real Estate Owned

—

Other Expense

841

961

886

941

765

Total Noninterest Expense

10,012

9,923

9,183

8,748

9,802

Income (Loss) Before Income Tax Expense

4,581

5,270

(7,020

)

4,715

2,336

Income Tax Expense (Benefit)

714

528

(1,324

)

766

427

Net Income (Loss)

3,867

4,742

(5,696

)

3,949

1,909

Three Months Ended

Per Common Share Data

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Dividends Per Common Share

0.28

0.26

0.25

Earnings (Loss) Per Common Share - Basic

0.77

0.95

(1.14

)

0.79

0.37

Earnings (Loss) Per Common Share - Diluted

0.73

0.89

(1.07

)

0.74

0.35

Weighted Average Common Shares Outstanding - Basic

5,053,586

5,015,025

4,985,188

5,022,813

5,125,577

Weighted Average Common Shares Outstanding - Diluted

5,318,874

5,304,685

5,319,594

5,332,026

5,471,006

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Common Shares Outstanding

5,072,183

5,036,509

4,998,383

4,972,300

5,099,069

Book Value Per Common Share

31.30

31.28

30.50

29.84

29.08

Tangible Book Value per Common Share (1)

29.38

29.35

28.56

27.88

27.17

Stockholders’ Equity to Assets

10.0

10.2

9.9

9.8

10.0

Tangible Common Equity to Tangible Assets (1)

9.5

9.6

9.3

9.2

9.4

Three Months Ended

Selected Financial Ratios (2)

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Return on Average Assets

1.01

1.22

(1.50

1.06

0.53

Return on Average Equity

9.84

12.14

(15.15

)

10.76

5.24

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

133.68

134.05

134.42

135.33

134.70

Average Equity to Average Assets

10.24

10.02

9.93

9.88

10.07

Net Interest Rate Spread

3.29

3.18

3.05

2.91

2.61

Net Interest Rate Spread (FTE) (1)

3.34

3.23

3.08

2.93

2.63

Net Interest Margin

3.83

3.76

3.64

3.54

3.27

Net Interest Margin (FTE) (1)

3.88

3.80

3.67

3.55

3.28

Net Charge-Offs (Recoveries) to Average Loans

0.01

0.10

(0.03

)

(0.01

)

0.02

Efficiency Ratio

67.49

63.79

379.15

64.94

81.02

Asset Quality Ratios

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Allowance for Credit Losses to Total Loans

0.89

0.87

0.89

0.88

0.90

Allowance for Credit Losses to Nonperforming Loans (3)

309.49

190.51

464.99

550.20

414.48

Delinquent and Nonaccrual Loans to Total Loans (4)

0.54

0.86

0.59

0.49

0.54

Nonperforming Loans to Total Loans (3)

0.29

0.46

0.19

0.16

0.22

Nonperforming Assets to Total Assets (5)

0.21

0.34

0.15

0.13

0.16

Capital Ratios (6)

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

Common Equity Tier 1 Capital (to Risk Weighted Assets)

14.70

13.92

14.19

15.28

14.94

Tier 1 Capital (to Risk Weighted Assets)

14.70

13.92

14.19

15.28

14.94

Total Capital (to Risk Weighted Assets)

15.71

14.89

15.20

16.29

15.95

Tier 1 Leverage (to Adjusted Total Assets)

10.34

10.15

10.06

10.49

10.36

(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

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 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)

1,151,941

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

1,075,083

14,584

5.50

Debt Securities

Taxable

249,917

2,999

4.80

241,449

3,035

5.03

259,196

2,848

4.40

284,499

2,860

4.02

278,362

2,777

3.99

Tax-Exempt

35,218

527

5.99

35,243

525

5.96

12,461

185

5.94

—

Equity Securities

1,000

2.80

1,000

2.80

1,000

2.80

1,000

3.60

2,674

4.19

Interest-Earning Deposits at Banks

27,236

200

2.94

41,222

384

3.73

29,682

293

3.95

33,564

331

3.94

45,056

459

4.07

Other Interest-Earning Assets

3,874

7.54

2,998

9.79

3,972

7.39

3,767

7.24

3,196

6.98

Total Interest-Earning Assets

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

1,404,371

17,903

5.17

Noninterest-Earning Assets

87,352

85,605

75,480

67,513

63,324

Total Assets

1,556,538

1,546,251

1,501,827

1,489,041

1,467,695

Liabilities and Stockholders' Equity:

Interest-Bearing Liabilities:

Interest-Bearing Demand Accounts

365,729

1,642

1.82

367,382

1,850

2.00

350,232

1,835

2.08

334,752

1,677

2.01

317,799

1,526

1.95

Money Market Accounts

209,181

1,104

2.14

212,212

1,232

2.30

211,660

1,401

2.63

238,195

1,747

2.94

230,634

1,726

3.04

Savings Accounts

169,568

0.10

168,853

0.11

171,188

0.10

174,055

0.10

172,322

0.10

Time Deposits

300,781

2,446

3.30

306,395

2,675

3.46

287,646

2,531

3.49

259,506

2,255

3.49

285,093

2,818

4.01

Total Interest-Bearing Deposits

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

1,005,848

6,111

2.46

Short-Term Borrowings

18,990

188

4.01

—

4.71

5,655

4.77

9,143

108

4.74

1,985

4.70

Other Borrowings

34,764

359

4.19

34,754

364

4.16

34,743

364

4.16

34,733

391

4.52

34,723

402

4.70

Total Interest-Bearing Liabilities

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

1,042,556

6,536

2.54

Noninterest-Bearing Demand Deposits

283,546

285,269

271,462

270,729

265,522

Total Funding and Cost of Funds

1,382,559

1.70

1,374,881

1.78

1,332,586

1.86

1,321,113

1.89

1,308,078

2.03

Other Liabilities

14,564

16,367

20,120

20,789

11,854

Total Liabilities

1,397,123

1,391,248

1,352,706

1,341,902

1,319,932

Stockholders' Equity

159,415

155,003

149,121

147,139

147,763

Total Liabilities and Stockholders' Equity

1,556,538

1,546,251

1,501,827

1,489,041

1,467,695

Net Interest Income (FTE)

(Non-GAAP) (3)

14,049

14,004

13,199

12,597

11,367

Net Interest-Earning Assets (4)

370,173

371,034

365,223

371,144

361,815

Net Interest Rate Spread (FTE)

(Non-GAAP) (3) (5)

3.34

3.23

3.08

2.93

2.63

Net Interest Margin (FTE)

(Non-GAAP) (3)(6)

3.88

3.80

3.67

3.55

3.28

(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.

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.

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

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

Total Assets (GAAP)

1,583,292

1,547,693

1,545,514

1,517,984

1,483,456

Goodwill and Intangible Assets, Net

(9,732

)

(9,732

)

(9,732

)

(9,732

)

(9,732

)

Tangible Assets (Non-GAAP) (Numerator)

1,573,560

1,537,961

1,535,782

1,508,252

1,473,724

Stockholders' Equity (GAAP)

158,751

157,537

152,465

148,362

148,289

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)

149,019

147,805

142,733

138,630

138,557

Stockholders’ Equity to Assets (GAAP)

10.0

10.2

9.9

9.8

10.0

Tangible Common Equity to Tangible Assets (Non-GAAP)

9.5

9.6

9.3

9.2

9.4

Common Shares Outstanding (Denominator)

5,072,183

5,036,509

4,998,383

4,972,300

5,099,069

Book Value per Common Share (GAAP)

31.30

31.28

30.50

29.84

29.08

Tangible Book Value per Common Share (Non-GAAP)

29.38

29.35

28.56

27.88

27.17

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

(Dollars in thousands) (Unaudited)

Net Income (Loss) (GAAP)

3,867

4,742

(5,696

)

3,949

1,909

Annualization Factor

4.06

3.97

4.01

4.06

Average Stockholders' Equity (GAAP)

159,415

155,003

149,121

147,139

147,763

Average Goodwill and Intangible Assets, Net

(9,732

)

(9,732

)

(9,732

)

(9,732

)

(9,732

)

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

149,683

145,271

139,389

137,407

138,031

Return on Average Equity (GAAP)

9.84

12.14

(15.15

10.76

5.24

Return on Average Tangible Common Equity (Non-GAAP)

10.48

12.95

(16.21

11.53

5.61

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

(Dollars in thousands) (Unaudited)

Interest Income (GAAP)

19,651

19,992

19,341

18,760

17,847

Adjustment to FTE Basis

177

178

100

Interest Income (FTE) (Non-GAAP)

19,828

20,170

19,441

18,817

17,903

Interest Expense (GAAP)

5,779

6,166

6,242

6,220

6,536

Net Interest Income (FTE) (Non-GAAP)

14,049

14,004

13,199

12,597

11,367

Net Interest Rate Spread (GAAP)

3.29

3.18

3.05

2.91

2.61

Adjustment to FTE Basis

0.05

0.03

0.02

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

3.34

3.23

3.08

2.93

2.63

Net Interest Margin (GAAP)

3.83

3.76

3.64

3.54

3.27

Adjustment to FTE Basis

0.05

0.04

0.03

0.01

Net Interest Margin (FTE) (Non-GAAP)

3.88

3.80

3.67

3.55

3.28

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

(Dollars in thousands) (Unaudited)

Income (Loss) Before Income Tax Expense (GAAP)

4,581

5,270

(7,020

)

4,715

2,336

Net Provision (Recovery) for Credit Losses

241

362

259

(40

)

PPNR (Non-GAAP)

4,822

5,632

(6,761

)

4,723

2,296

Adjustments

Net (Gain) Loss on Securities

)

(14

)

11,752

—

Net Gain on Disposal of Premises and Equipment

—

(40

)

—

Earn-out Payment Related to the Sale of EU

)

(711

)

—

(49

)

Reduction in Force Expenses

—

1,003

Adjusted PPNR (Non-GAAP) (Numerator)

4,806

4,867

4,991

4,723

3,319

Annualization Factor

4.06

3.97

4.01

4.06

Average Assets (Denominator)

1,556,538

1,546,251

1,501,827

1,489,041

1,467,695

Adjusted PPNR Return on Average Assets (Non-GAAP)

1.25

1.32

1.27

0.92

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

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

Net Income (Loss) (GAAP)

3,867

4,742

(5,696

)

3,949

1,909

Adjustments

Net (Gain) Loss on Securities

)

(14

)

11,752

—

Net Gain on Disposal of Premises and Equipment

—

(40

)

—

Earn-out Payment Related to the Sale of EU

)

(711

)

—

(49

)

Reduction in Force Expenses

—

1,003

Tax effect

(178

)

(2,129

)

—

(215

)

Adjusted Net Income (Non-GAAP)

3,854

3,799

3,927

3,949

2,717

Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding

5,318,874

5,304,685

5,319,594

5,332,026

5,471,006

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

0.73

0.89

(1.07

)

0.74

0.35

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

0.72

0.74

0.50

Net Income (Loss) (GAAP) (Numerator)

3,867

4,742

(5,696

)

3,949

1,909

Annualization Factor

4.06

3.97

4.01

4.06

Average Assets (Denominator)

1,556,538

1,546,251

1,501,827

1,489,041

1,467,695

Return on Average Assets (GAAP)

1.01

1.22

(1.50

1.06

0.53

Adjusted Net Income (Non-GAAP) (Numerator)

3,854

3,799

3,927

3,949

2,717

Annualization Factor

4.06

3.97

4.01

4.06

Average Assets (Denominator)

1,556,538

1,546,251

1,501,827

1,489,041

1,467,695

Adjusted Return on Average Assets (Non-GAAP)

1.00

0.97

1.04

1.06

0.75

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

(Dollars in thousands) (Unaudited)

Net Income (Loss) (GAAP) (Numerator)

3,867

4,742

(5,696

)

3,949

1,909

Annualization Factor

4.06

3.97

4.01

4.06

Average Equity (GAAP) (Denominator)

159,415

155,003

149,121

147,139

147,763

Return on Average Equity (GAAP)

9.84

12.14

(15.15

10.76

5.24

Adjusted Net Income (Non-GAAP) (Numerator)

3,854

3,799

3,927

3,949

2,717

Annualization Factor

4.06

3.97

4.01

4.06

Average Equity (GAAP) (Denominator)

159,415

155,003

149,121

147,139

147,763

Adjusted Return on Average Equity (Non-GAAP)

9.80

9.72

10.45

10.76

7.46

Three Months Ended

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

(Dollars in thousands) (Unaudited)

Noninterest Expense (GAAP) (Numerator)

10,012

9,923

9,183

8,748

9,802

Net Interest and Dividend Income (GAAP)

13,872

13,826

13,099

12,540

11,311

Noninterest Income (Loss) (GAAP)

962

1,729

(10,677

)

931

787

Operating Revenue (GAAP) (Denominator)

14,834

15,555

2,422

13,471

12,098

Efficiency Ratio (GAAP)

67.49

63.79

379.15

64.94

81.02

Noninterest Expense (GAAP)

10,012

9,923

9,183

8,748

9,802

Adjustments:

Reduction in Force Expenses

—

(1,003

)

Adjusted Noninterest Expense (Non-GAAP) (Numerator)

10,012

9,923

9,183

8,748

8,799

Net Interest and Dividend Income (GAAP)

13,872

13,826

13,099

12,540

11,311

Noninterest Income (Loss) (GAAP)

962

1,729

(10,677

)

931

787

Adjustments:

Net (Gain) Loss on Securities

)

(14

)

11,752

—

Net Gain on Disposal of Premises and Equipment

—

(40

)

—

Earn-out Payment Related to the Sale of EU

)

(711

)

—

(49

)

Adjusted Noninterest Income (Non-GAAP)

946

964

1,075

931

807

Adjusted Operating Revenue (Non-GAAP) (Denominator)

14,818

14,790

14,174

13,471

12,118

Adjusted Efficiency Ratio (Non-GAAP)

67.56

67.09

64.79

64.94

72.61