Profile: CB Financial Services Inc (CBFV.OQ)
24 May 2019
CB Financial Services, Inc., incorporated on February 3, 2005, is the bank holding company for Community Bank (the Bank). The Company operates in community banking segment. The Bank offers residential and commercial real estate loans, commercial and industrial loans, and consumer loans, as well as a range of deposit products for individuals and businesses in its market area. The Bank operates through a network of approximately 20 offices in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania. In addition, the Bank offers property and casualty, commercial liability, surety and other insurance products, through its subsidiary, Exchange Underwriters, Inc. (Exchange Underwriters), an independent insurance agency.
The Company's principal lending activity is the origination of residential loans secured by one- to four-family residential properties in its local market area. The Company also originates commercial real estate, construction, commercial and industrial, and consumer loans. The Company's loans receivable totals approximately $676.9 million. Residential real estate loans consist of loans secured by one- to four-family residential and, to a lesser extent, multi-family properties. Included in residential real estate loans are traditional one- to four-family mortgage loans, multifamily mortgage loans, home equity installment loans and home equity lines of credit. Its one- to four-family mortgage loans total approximately $178.4 million.
The Company's home equity loans total approximately $94.8 million. The Company originates commercial real estate loans that are secured primarily by improved properties, such as retail facilities, office buildings and other non-residential buildings. Approximately $203.0 million of its total loan portfolio consists of commercial real estate loans. The Company originates construction loans to individuals to finance the construction of residential dwellings, and also originates loans for the construction of commercial properties, including hotels, apartment buildings and owner-occupied properties used for businesses. Approximately $21.2 million of the Company's total loan portfolio consists of construction loans. The Company originates commercial and industrial loans and lines of credit to borrowers located in the Company's market area, which is generally secured by collateral other than real estate, such as equipment, inventory and other business assets. Approximately $77.1 million of the Company's total loan portfolio consists of commercial and industrial loans. The Company originates consumer loans, which primarily consist of indirect auto loans and, to a lesser extent, secured and unsecured loans and lines of credit. The Company's consumer loans total approximately $104.2 million, of which over $69.6 million are indirect auto loans.
The Company invests in the United States treasuries, federal agency securities, mortgage-backed securities, investment grade corporate bonds, municipal bonds, short-term instruments and other securities. It also invests in certificates of deposit, securities purchased under an agreement to resell, bankers acceptances, commercial paper and federal funds. The majority of the Company's portfolio is designated as available-for-sale. The portfolio consists primarily of the United States Government and agency securities, municipal bonds and mortgage-backed securities, the majority of which are classified as available for sale. The Company holds the United States Government and agency securities with a fair value of approximately $51.2 million. It holds available-for-sale municipal bonds with a fair value of over $40.1 million. Nearly all of the Company's municipal bonds are issued by local municipalities or school districts located in Pennsylvania. The Company invests in mortgage-backed securities insured or guaranteed by the United States government or government sponsored enterprises. These securities, which consist of mortgage-backed securities issued by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have an amortized cost of approximately $3.4 million. The fair value of the Company's mortgage-backed securities portfolio is approximately $3.4 million.
Sources of Funds
Deposits are the Company's primary source of funds for use in lending and investment activities. The Company also uses borrowings, primarily Federal Home Loan Bank (FHLB) of Pittsburgh advances, to supplement cash flow needs, lengthen the maturities of liabilities for interest rate risk purposes and to manage the cost of funds. In addition, funds are derived from scheduled loan payments, investment maturities, loan prepayments, loan sales, retained earnings and income on earning assets. The Company offers a selection of deposit accounts. The Company's total deposits include approximately $679.3 million.
CB Financial Services Inc
100 N Market St
CARMICHAELS PA 15320-1224