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CBFV Nasdaq· CB Financial Services Inc
Earnings report Q3 2023

CB Financial Services Reports Decrease in Net Income for Q3 2023

Segments of revenue

CB Financial Services reported a decrease in net income for the three months ended September 30, 2023. The company's interest and dividend income for the quarter was $12.3 million, while interest expense amounted to $1.1 million. This resulted in a net interest and dividend income of $11.2 million. Noninterest income was $1.3 million, and noninterest expense was $7.7 million. The company also reported an undistributed net income of $230,000 from its subsidiary. After accounting for income tax expenses of $948,000, CB Financial Services recorded a net income of $4 million for the quarter.

Strengths

Despite the decrease in net income, CB Financial Services demonstrated strength in its interest and dividend income, which amounted to $12.3 million for the quarter. The company's management attributed this increase to higher-rate certificate of deposit products and collateralized deposits. Additionally, the company's subsidiary contributed to its overall performance with an undistributed net income of $230,000.

Challenges

CB Financial Services faced challenges in its net interest and dividend income, which decreased by $298,000 or 2.7% compared to the same quarter last year. The company's net interest margin (GAAP) also decreased to 3.13% for the quarter, compared to 3.29% in the previous year. This decline in net interest income and margin indicates potential challenges in generating interest income from loans and investments.

Noteworthy

CB Financial Services reported a decrease in net income for the three months ended September 30, 2023, compared to the same period last year. The company's net income decreased by $1.3 million, amounting to $2.7 million for the quarter. This decline in net income could be attributed to the challenges faced in net interest and dividend income.

Summary

CB Financial Services experienced a decrease in net income for the third quarter of 2023. While the company demonstrated strength in its interest and dividend income, challenges were observed in its net interest and dividend income, resulting in a decline in net income. The company's management highlighted the impact of higher-rate certificate of deposit products and collateralized deposits on its interest income. Moving forward, CB Financial Services may need to address the challenges in its net interest income to improve its overall financial performance.

Source documents

Form 10-Q  filed on Nov 13, 2023
31 pages scanned

Reference data

Company financials Q3 revenue 29.1M
Analyst estimates Q3 EPS beat by 365.76%
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