CB Financial Services, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total assets increased by $105.7 million, or 7.3%, reaching $1.56 billion, compared to $1.46 billion at the end of 2023. This growth was driven by a substantial rise in cash and due from banks, which surged by $79.1 million to $147.3 million, and an increase in total securities, which rose by $63.8 million to $270.9 million, influenced by the acquisition of $69.8 million in collateralized loan obligation securities.

Total loans decreased by $44.6 million, or 4.0%, to $1.07 billion, primarily due to a decline in consumer loans amid rising interest rates. The allowance for credit losses (ACL) was $9.5 million, down from $9.7 million at the end of 2023, resulting in an ACL to total loans ratio of 0.89%. Nonperforming loans decreased to $2.0 million, representing a nonperforming loans to total loans ratio of 0.19%.

For the three months ended September 30, 2024, net income was $3.2 million, an increase of $547,000 from $2.7 million in the same period of 2023. Net interest and dividend income rose by $757,000, or 7.1%, to $11.5 million, while interest and dividend income increased by $3.9 million, or 24.6%, to $19.8 million. However, interest expense also rose significantly, increasing by $3.1 million, or 60.9%, to $8.3 million, primarily due to higher costs associated with deposits.

The company’s stockholders' equity increased by $9.3 million, or 6.7%, to $149.1 million, bolstered by net income and a decrease in accumulated other comprehensive loss, despite $3.9 million in dividends paid. Book value per common share rose to $29.07 from $27.32 at the end of 2023.

Strategically, CB Financial completed the sale of its insurance subsidiary, Exchange Underwriters, to World Insurance Associates for $30.5 million, recognizing a pre-tax gain of $24.6 million. This transaction, finalized in December 2023, has allowed the company to focus on its core banking operations. The company also entered into an interest rate swap contract in October 2023 to mitigate interest rate risks.

Overall, CB Financial's performance reflects a mix of growth in certain asset categories and challenges in loan volumes, alongside strategic shifts aimed at enhancing its core banking focus.