📣 What This Document Is

This filing is an 8-K, known as a Current Report, which means it is an immediate announcement to the public. Specifically, it contains the company's detailed financial results for the first quarter of 2026, covering the three months ended March 31, 2026. The purpose is to give investors a comprehensive look at how the company performed financially, what its biggest strategic moves were, and what its outlook is for the future.

👉 You should expect to see detailed breakdowns of revenue, expenses, asset movements, and management's commentary on market trends and their strategy going forward.

🏦 What The Company Does

CB Financial Services, Inc. is the holding company for Community Bank, which operates a broad array of retail and commercial lending and deposit services. The Bank has its branch network focused in southwestern Pennsylvania and West Virginia.

👉 In simple terms, the company is a traditional bank that makes money by taking deposits (loans) and lending that money out (loans), all while providing related services like treasury management to businesses.

💰 Q1 2026 Financial Performance Highlights

The first section of the results provides the top-line financial metrics, showing how the bank is performing compared to previous quarters. The results show a positive trend, particularly in the comparison of "Adjusted" numbers, which are non-GAAP (Generally Accepted Accounting Principles) metrics management uses to better reflect core operations.

• Net Income (GAAP): The bank reported a Net Income of $3,867 million for the three months ended March 31, 2026. This is up significantly compared to the loss recorded in the prior quarter (12/31/25) of $4,742 million.
  • Why it matters: The dramatic swing in profit signals that the bank is successfully navigating its balance sheet and improving its cost of funding.
• Adjusted Net Income (Non-GAAP): Using management's preferred non-GAAP metrics, the Adjusted Net Income was $3,854 million. This figure was also up significantly compared to the same period last year's $3,799 million, showing solid quarter-over-quarter stability.
• Earnings Per Share (EPS): Diluted Adjusted Earnings per Common Share was $0.72. This indicates how much profit was earned for every share of stock outstanding, a key metric investors use to gauge profitability.

💸 Dividend Declaration

The board of directors made a clear announcement regarding shareholder returns. The Company’s Board of Directors declared a quarterly cash dividend of $0.28 per outstanding share of common stock.

👉 This dividend is payable on or about May 29, 2026, to stockholders who own shares at the close of business on May 15, 2026. A rising dividend per share generally signals management's confidence in continued stable cash flow.

📈 Improved Net Interest Margin and Funding Mix

This section details the core revenue drivers of a bank—the difference between what it earns on loans and what it pays out to depositors. The bank reported impressive improvement in both metrics.

• Net Interest Margin (NIM) Improvement: The NIM increased to 3.83% for the three months ended March 31, 2026, compared to 3.76% for the same period in 2025. This shows that for every dollar of interest-earning assets, the bank captured more profit than it paid out in interest expenses.
• Cost of Funds Reduction: The cost of funds (interest paid to depositors) dropped to 1.70% (from 1.78% in 2025). This decline was driven by the bank successfully changing its deposit mix.
• Specialty Treasury Clients: The bank strategically shifted its deposits toward lower-cost "core deposit" relationships and away from expensive funding. This was boosted by the onboarding of Specialty Treasury clients, which led to $27.6 million in growth in noninterest-bearing and low interest-bearing demand deposits during Q1 2026.
  • Why it matters: Attracting low-cost, sticky deposits (like those from Specialty Treasury clients) is crucial because it lowers the bank's overall cost of doing business, increasing profitability.

🛡️ Strengthening Asset Quality and Loan Portfolio

The bank’s ability to manage risk while growing its loan book is central to its stability. The filing shows management is actively repositioning the loan portfolio for higher stability.

• Loan Portfolio Shift: The percentage of commercial loans jumped significantly from 55.6% at March 31, 2025, to 61.1% at March 31, 2026. This signals a clear strategic move to prioritize lending in commercial sectors, which are often considered more stable than residential or consumer loans.
• Loan Production vs. Payoffs: Loan demand showed momentum in the quarter, with production totaling $30.5 million against $29.4 million in payoffs over the past three months.
• Nonperforming Loan Ratio: The Nonperforming Loans (NPLs) to total loans ratio improved, standing at 0.29% at March 31, 2026, down from 0.46% at December 31, 2025.
  • Why it matters: A lower NPL ratio means the bank has fewer loans that are seriously slipping into default, signaling robust credit management.

🏛️ Balance Sheet Health (Assets and Liabilities)

Reviewing the bank's overall financial structure shows capital strength and careful resource management.

• Total Assets: Total assets increased $35.6 million, reaching $1.58 billion as of March 31, 2026, compared to $1.55 billion at December 31, 2025.
  • Why it matters: Growing assets signal the bank is expanding its resources and capacity to lend and hold investments.
• Cash Growth: Cash and due from banks saw a substantial increase of $23.9 million, reaching $55.5 million. This cash influx was directly attributed to deposit growth, giving the bank significant liquidity.
• Total Deposits: Total deposits grew $35.6 million, totaling $1.38 billion as of March 31, 2026. This deposit growth is key because it is the bank's primary source of funds.
• Stockholders’ Equity: Stockholders’ equity increased by $1.2 million, reaching $158.8 million. The book value per share was $31.30 at March 31, 2026.

🧑‍💼 Management's Strategic Vision and Guidance

The CEO’s commentary is highly valuable because it explains why the numbers look the way they do and what the bank plans to do next. Management remains focused on disciplined execution and strategic growth pillars.

• On the Core Strategy: President and CEO John H. Montgomery commented, "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."
  • Interpretation: The CEO confirms that the low interest rate environment helped them reduce their costs, making their profits appear stronger.
• Specialty Treasury Program: The Specialty Treasury Payments & Services program is highlighted as a "key pillar of our long-term strategy." The program generated $28 million in new deposits since year-end, and management sees this as a high-value investment that will generate significant revenue growth over time.
• Future Growth Focus: The bank is committed to building out its mortgage lending capabilities and deepening customer relationships. This is seen as a "natural extension of our relationship-banking model."
• Community Focus: The bank emphasized its commitment to the local communities, especially as it approaches its 125th anniversary on July 1, 2026, which will be marked by a "Generations of Trust" campaign.

🧠 The Analogy

Think of CB Financial Services like a farmer who is managing a huge patch of fields. 🚜 When interest rates drop, it's like the cost of fertilizer (deposits) goes down, which lowers the farmer's overhead. By focusing on high-value, stable crops (commercial loans/Specialty Treasury clients), the farmer can shift away from unreliable crops and continue to grow revenue (profit) even when the market is unpredictable.

🧩 Final Takeaway

CBFV successfully improved its profit margins and maintained strong asset quality in Q1 2026, primarily by lowering its cost of funding through smart deposit management and strategically shifting its loan book toward stable commercial sectors. The focus is clearly on growing high-value, sticky client relationships to build long-term, sustainable revenue.