Business Wire | May 4, 2021 08:30AM EDT

CB Financial Services, Inc. Announces First Quarter 2021 Financial Results and Declares Quarterly Cash Dividend

May 04, 2021

WASHINGTON, Pa.--(BUSINESS WIRE)--May 04, 2021--CB Financial Services, Inc. ("CB" or the "Company") (NASDAQGM: CBFV), the holding company of Community Bank (the "Bank") and Exchange Underwriters, Inc. ("EU"), a wholly-owned insurance subsidiary of the Bank, today announced its first quarter 2021 financial results.

Three Months Ended

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

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



Net Income (Loss) (GAAP) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773

Excluding Non-Recurring - 198 19,239 - - Items (Non-GAAP) ^(1)

Adjusted Net Income $ 2,845 $ 3,277 $ 1,844 $ 2,903 $ 773 (Non-GAAP) ^(1)



Earnings (Loss) per Common $ 0.52 $ 0.57 $ (3.22) $ 0.54 $ 0.14 Share - Diluted (GAAP)

Adjusted Earnings perCommon Share - Diluted $ 0.52 $ 0.61 $ 0.34 $ 0.54 $ 0.14 (Non-GAAP) ^(1)

(1) Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of net income (loss) and adjusted earnings per common share - diluted in this Press Release.

2021 First Quarter Financial Highlights

(Comparisons to three months ended March 31, 2020)

* Net income an increase to $2.8 million compared to $773,000. * Earnings per diluted share (EPS) increased to $0.52 from $0.14. * Return on average assets of 0.81%, compared to 0.24%. * Return on average equity of 8.54%, compared to 2.04%. * Net interest margin decreased to 3.04% from 3.55%. * Net interest and dividend income was $10.0 million, compared to $10.5 million. * Noninterest income increased to $3.2 million from $1.9 million.

(Amounts at March 31, 2021; comparisons to December 31, 2020)

* Total loans including Payroll Protection Program ("PPP) loans were $1.04 billion, a decrease of $3.1 million. * Total loans (excluding PPP loans) were $981.3 million, a decrease of $8.3 million. * Total deposits were $1.28 billion, an increase of $59.9 million. * Total assets increased to a record $1.48 billion, compared to $1.42 billion. * Book value per share was $24.62, compared to $24.76. * Tangible book value per share (Non-GAAP) was $21.38, compared to $21.42.

Branch Optimization and Operational Efficiency Update

In connection with the previously announced branch consolidations and the other branch optimization initiatives, CB anticipates non-recurring pre-tax costs during 2021 in line with the $6.1 million announced in February. This estimated cost excludes the impact of any premium from sale of branches, and assumes no salvage value, lease termination, severance, and other costs associated with the consolidations or sales; however, the Company anticipates some recovery of these costs over time. CB expects an annual reduction in pre-tax operating expenses in 2021 of approximately $1.5 million, along with $3.0 million of ongoing pre-tax cost savings as a result of the implementation of the branch optimization initiatives. The Bank also completed a comprehensive review of its branch network and operating environment to identify solutions to improve operating performance. This review prioritized profitability, efficiency, infrastructure and client experience improvements, automation in operations, and digital marketing and technology investments.

Dividend Information

The Company's Board of Directors has declared a $0.24 quarterly cash dividend per outstanding share of common stock, payable on or about June 1, 2021, to stockholders of record as of the close of business on May 21, 2021.

Management Commentary

President and CEO John H. Montgomery stated, "CB reported strong net income of $2.8 million for the first quarter of 2021, largely due to higher noninterest income and improvements in asset quality that included no provisions for loan losses during the period. We are continuing to focus on improving the franchise value in our core market area surrounding Southwestern Pennsylvania as CB remains well positioned for an economic recovery in the region. We improved our commercial real estate loan growth throughout the past several periods, while also growing deposits. Over the course of the year, we intend to invest in our current branch network while moving forward with a branch optimization strategy that will lead to continuing efficiency ratio improvements. The investments made in enhancing our fintech capabilities, including digital and mobile capabilities, will improve CB's ability to adapt to changing customer needs as we emerge from the pandemic conditions of 2020."

2021 First Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income decreased $556,000, or 5.3%, to $10.0 million for the three months ended March 31, 2021 compared to $10.5 million for the three months ended March 31, 2020.

* Net interest margin (FTE) (Non-GAAP) decreased 52 basis points ("bps") to 3.05% for the three months ended March 31, 2021 compared to 3.57% for the three months ended March 31, 2020. Net interest margin (GAAP) decreased to 3.04% for the three months ended March 31, 2021 compared to 3.55% for the three months ended March 31, 2020. * Interest and dividend income decreased $1.3 million, or 10.9%, to $11.0 million for the three months ended March 31, 2021 compared to $12.3 million for the three months ended March 31, 2020. Interest income on loans decreased $618,000, or 5.7%, to $10.1 million for the three months ended March 31, 2021 compared to $10.8 million for the three months ended March 31, 2020. While average loans increased $81.2 million compared to the three months ended March 31, 2020, the average yield decreased 57 bps to 4.00%. PPP loans decreased loan yield approximately 5 bps but that was offset by the recognition of $535,000 of net PPP loan origination fees in the current period. The impact of the accretion of the credit mark on acquired loan portfolios was $138,000 for the three months ended March 31, 2021 compared to $76,000 for the three months ended March 31, 2020, or 6 bps in the current period compared to 3 bps in the prior period. Interest income on taxable investment securities decreased $555,000, or 46.2%, to $646,000 for the three months ended March 31, 2021 compared to $1.2 million for the three months ended March 31, 2020 driven by a $35.8 million decrease in average investment securities balances and 93 bps decrease in average yield. The Federal Reserve's pandemic-driven decision to drop the benchmark interest rate in 2020 resulted in significant calls of U.S. government agency securities and paydowns on mortgage-backed securities in the declining interest rate environment, which were replaced with lower-yielding securities or maintained in cash. Other interest and dividend income, which primarily consists of interest-bearing cash, decreased $140,000, or 58.8% to $98,000 for the three months ended March 31, 2021 compared to $238,000 for the three months ended March 31, 2020. Average other interest-earning assets increased $97.3 million compared to the three months ended March 31, 2020 primarily from buildup of cash as a result of securities activity, PPP loan funds and government stimulus payments deposited with the Bank, although average yield declined 123 bps due to interest rate cuts on interest-earning cash deposits held at other financial institutions. * Interest expense decreased $785,000, or 43.7%, to $1.0 million for the three months ended March 31, 2021 compared to $1.8 million for the three months ended March 31, 2020. Interest expense on deposits decreased $734,000, or 43.7%, to $947,000 for the three months ended March 31, 2021 compared to $1.7 million for the three months ended March 31, 2020. While average interest-earning deposits increased $42.2 million compared to the three months ended March 31, 2020, interest rate declines for all products driven by pandemic-related interest rate cuts resulted in a 37 bp, or 46.0%, decrease in average cost compared to the three months ended March 31, 2020. In addition, average time deposits and the related average cost decreased $28.3 million and 41 bps, respectively.

Provision for Loan Losses

There was no provision for loan losses recorded for the three months ended March 31, 2021 compared to $2.5 million for the three months ended March 31, 2020. An $8.3 million decrease in net reservable loans in the current period, which excludes PPP loans, and improving economic and industry condition contributed to the lack of provision in the current period.

Noninterest income

Noninterest income increased $1.3 million, or 69.6%, to $3.2 million for the three months ended March 31, 2021, compared to $1.9 million for the three months ended March 31, 2020. The increase was largely due to net gains on securities compared to a net loss in the prior period, as well as an increase in profit-sharing insurance commissions and a $172,000 recapture of temporary impairment on mortgage servicing rights.

Noninterest Expense

Noninterest expense increased $392,000, or 4.4%, to $9.4 million for the three months ended March 31, 2021 compared to $9.0 million for the three months ended March 31, 2020. The increase is primarily from contracted services, which includes the engagement of a third-party workflow optimization expert to assist in implementing robotic process automations and more effective sales management designed to improve operational efficiencies in the near and long-term. In addition, salaries and employee benefits increased primarily due to the recognition in the prior period of a $407,000 one-time benefit from health insurance claims exceeding our stop-loss limit for the 2019 plan year and change from a self-funded to a fully-insured plan.

Statement of Financial Condition Review

Assets

Total assets increased $60.1 million, or 4.2%, to $1.48 billion at March 31, 2021, compared to $1.42 billion at December 31, 2020. The change is primarily due to an increase in Deposits as further described below in the Liabilities section.

* Cash and due from banks increased $69.1 million, or 42.9%, to $230.0 million at March 31, 2021, compared to $160.9 million at December 31, 2020. The change is primarily due to an increase in Deposits as further described below in the Liabilities section. * Securities decreased $3.2 million, or 2.2%, to $142.2 million at March 31, 2021, compared to $145.4 million at December 31, 2020. Current period activity included $11.0 million of paydowns on mortgage-backed securities, $22.3 million of mortgage-backed securities and U.S. government agency securities purchases, and $11.9 million of mortgage-backed securities sales, which resulted in the recognition of a $225,000 gain on the sale of securities. The sales recognized gains on higher-interest securities with faster prepayment speeds. In addition, there was a $3.1 million decrease in the market value of the debt securities portfolio and a $222,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks.

Payroll Protection Program ("PPP") Update

* The Small Business Administration reopened the PPP the week of January 11, 2021 and began accepting applications for both First Draw and Second Draw PPP Loans. As of March 31, 2021, as part of this round of PPP, the Bank funded 156 PPP loans totaling $25.0 million with net deferred origination fees of $984,000. Combined with $19.7 million of loan forgiveness processed in the first quarter of 2021, total PPP loans increased $5.3 million to $60.4 million at March 31, 2021 compared to $55.1 million at December 31, 2020. * $1.1 million of net PPP loan origination fees were unearned at December 31, 2020. Due to activity in the first quarter of 2021, $1.5 million of net PPP loan origination fees were unearned at March 31, 2021. $535,000 of net PPP loan origination fees were earned in the first quarter of 2021 compared to $604,000 for the three months ended December 31, 2020.

Loans and Credit Quality

* Total loans decreased $3.1 million to $1.04 billion at March 31, 2021. Excluding the impact of PPP loans, organic loan growth declined $8.3 million. * The allowance for loan losses was $12.7 million at March 31, 2021 compared to $12.8 million at December 31, 2020. There was no provision for loan losses in the first quarter. An $8.3 million decrease in net reservable loans in the current period, which excludes PPP loans, and improving economic and industry condition contributed to the lack of provision in the current period. As a result, the allowance for loan losses to total loans of 1.22% at March 31, 2021 was comparable to the percentage at December 31, 2020. No allowance was allocated to the PPP loan portfolio. The allowance for loan losses to total loans, excluding PPP loans, was 1.30% at March 31, 2021 compared to 1.29% at December 31, 2020. * Net charge-offs for the three months ended March 31, 2021 were $46,000, or 0.02% of average loans on an annualized basis, . Net charge-offs for the three months ended March 31, 2020 were $45,000, or 0.02% of average loans on an annualized basis, . Net charge-offs were primarily attributable to indirect automobile loans in both periods. * Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings, were $14.3 million at March 31, 2021 compared to $14.5 million at December 31, 2020. Nonperforming loans to total loans ratio was 1.37% at March 31, 2021 compared to 1.39% at December 31, 2020. * There were 25 loans in forbearance totaling $18.4 million at March 31, 2021 compared to 31 loans totaling $24.1 million at December 31, 2020. This includes two commercial real estate loans totaling $4.6 million and one construction loan totaling $2.0 million that are all secured by hotels, one commercial real estate loan totaling $5.5 million secured by office space and a business relationship that rents equipment, supplies and other materials for events comprised of three commercial real estate loans totaling $3.3 million, and five commercial and industrial loans totaling $1.2 million.

Liabilities

Total liabilities increased $60.9 million, or 4.7%, to $1.34 billion at March 31, 2021 compared to $1.28 billion at December 31, 2020.

Deposits

* Deposits increased $59.9 million to $1.28 billion as of March 31, 2021 compared to $1.22 billion at December 31, 2020. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $36.6 million, $21.1 million and $11.6 million, respectively, partially offset by a decrease of $9.3 million in time deposits. IRS and stimulus-related payments totaled $29.9 million in the current quarter and the impact of the PPP loans that were originated in the current quarter and the proceeds of which were initially deposited at the Bank was approximately $23.4 million. Annualized deposit growth rate was 19.6% including PPP loan deposits and 2.2% without IRS and PPP loan deposits, representing organic deposit growth. Average total deposits increased $17.0 million, primarily in noninterest-bearing deposits, for the three months ended March 31, 2021 compared to the three months ended December 31, 2020.

Borrowed Funds

* Short-term borrowings increased $4.3 million, or 10.5%, to $45.4 million at March 31, 2021, compared to $41.1 million at December 31, 2020. At March 31, 2021 and December 31, 2020, short-term borrowings were comprised entirely of securities sold under agreements to repurchase. The increase is related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank's investment portfolio under an agreement to repurchase. * Other borrowed funds decreased $2.0 million to $6.0 million at March 31, 2021 due to a Federal Home Loan Bank borrowing that matured in the current period.

Stockholders' Equity

Stockholders' equity decreased $754,000, or 0.6%, to $133.8 million at March 31, 2021, compared to $134.5 million at December 31, 2020.

Book value per share

Book value per share was $24.62 at March 31, 2021 compared to $24.76 at December 31, 2020, a decrease of $0.14. Tangible book value per share (Non-GAAP) decreased $0.04 to $21.38 compared to $21.42 at December 31, 2020. 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 15 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties in southwestern Pennsylvania, six offices in Brooke, Marshall, Ohio, Upshur and Wetzel Counties in West Virginia, and one office in Belmont County in Ohio. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

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, the scope and duration of economic contraction as a result of the COVID-19 pandemic and its effects on the Company's business and that of the Company's customers, 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.

Given the numerous unknowns and risks that are heavily weighted to the downside as a result of the COVID-19 pandemic, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain COVID-19 are unsuccessful and shelter-in-place orders last longer than expected, the recession would be much longer and much more severe and damaging. Ineffective fiscal stimulus, or an extended delay in implementing it, are also major risks. The deeper the recession and the longer it lasts, the more it will damage consumer fundamentals and sentiment. This could both prolong the recession and make any recovery weaker. Similarly, the recession could damage business fundamentals. As a result, the outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.

CB FINANCIAL SERVICES, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

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



SelectedFinancial 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20ConditionData

Total Assets $ 1,476,821 $ 1,416,720 $ 1,392,876 $ 1,407,152 $ 1,313,173

Cash and Due 230,000 160,911 112,169 131,403 78,099 From Banks

Securities 142,156 145,400 158,956 148,648 171,411

Loans

Real Estate:

Residential 339,596 344,142 343,955 344,782 346,864

Commercial 370,118 373,555 353,904 350,506 354,374

Construction 77,714 72,600 69,178 58,295 50,017

Commercialand 128,931 126,813 144,315 149,085 80,721 Industrial

Consumer 111,650 113,854 117,364 117,145 121,494

Other 13,688 13,789 22,169 22,346 21,180

Total Loans 1,041,697 1,044,753 1,050,885 1,042,159 974,650

Allowance for (12,725) (12,771) (13,780) (12,648) (12,322) Loan Losses

Loans, Net 1,028,972 1,031,982 1,037,105 1,029,511 962,328

Premises andEquipment, 20,240 20,302 20,439 21,818 22,037 Net

Goodwill 9,732 9,732 9,732 28,425 28,425

Intangible 7,867 8,399 8,931 9,463 9,995 Assets, Net



Deposits

Non-InterestBearing 377,137 340,569 335,287 341,180 267,369 DemandDeposits

InterestBearing 280,929 259,870 245,850 237,343 229,601 DemandAccounts

Money Market 198,975 199,029 188,958 184,726 177,597 Accounts

Savings 246,725 235,088 232,691 229,388 220,484 Accounts

Time Deposits 180,697 190,013 196,250 201,303 211,589

Total 1,284,463 1,224,569 1,199,036 1,193,940 1,106,640 Deposits



Short-Term 45,352 41,055 42,061 42,349 34,967 Borrowings

Other 6,000 8,000 11,000 11,000 11,000 Borrowings



Stockholders' 133,776 134,530 133,299 152,392 151,525 Equity

Three Months Ended

Selected Operating Data

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

Interest and Dividend Income

Loans, Including Fees

$

10,146

$

10,833

$

10,709

$

10,577

$

10,764

Securities:

Taxable

646

725

753

940

1,201

Tax-Exempt

78

78

79

106

106

Dividends

20

20

19

20

20

Other Interest and Dividend Income

98

99

96

84

238

Total Interest and Dividend Income

10,988

11,755

11,656

11,727

12,329

Interest Expense

Deposits

947

1,036

1,150

1,305

1,681

Short-Term Borrowings

23

25

28

39

45

Other Borrowings

41

60

62

62

70

Total Interest Expense

1,011

1,121

1,240

1,406

1,796

Net Interest and Dividend Income

9,977

10,634

10,416

10,321

10,533

Provision for Loan Losses

-

-

1,200

300

2,500

Net Interest and Dividend Income After Provision for Loan Losses

9,977

10,634

9,216

10,021

8,033

Noninterest Income:

Service Fees

546

560

554

487

605

Insurance Commissions

1,595

1,403

1,079

1,113

1,283

Other Commissions

165

105

76

188

110

Net Gain on Sales of Loans

86

388

435

441

127

Net Gain (Loss) on Securities

447

213

(59)

517

(438)

Net Gain on Purchased Tax Credits

18

16

15

16

15

Net (Loss) Gain on Disposal of Fixed Assets

-

(13)

(65)

-

17

Income from Bank-Owned Life Insurance

137

140

140

138

139

Other Income (Loss)

180

(34)

(2)

(252)

14

Total Noninterest Income

3,174

2,778

2,173

2,648

1,872

Noninterest Expense:

Salaries and Employee Benefits

4,894

5,126

5,124

4,828

4,731

Occupancy

710

606

759

699

733

Equipment

266

234

220

224

257

Data Processing

518

476

482

460

425

FDIC Assessment

250

344

172

163

158

PA Shares Tax

265

350

355

333

275

Contracted Services

687

577

531

562

378

Legal and Professional Fees

189

185

161

171

235

Advertising

140

178

148

155

183

Other Real Estate Owned (Income)

(38)

(39)

(12)

(1)

(17)

Amortization of Intangible Assets

532

532

532

532

532

Goodwill Impairment

-

-

18,693

-

-

Writedown of Fixed Assets

-

240

884

-

-

Other

982

916

919

945

1,113

Total Noninterest Expense

9,395

9,725

28,968

9,071

9,003

Income (Loss) Before Income Tax Expense (Benefit)

3,756

3,687

(17,579)

3,598

902

Income Tax Expense (Benefit)

911

608

(184)

695

129

Net Income (Loss)

$

2,845

$

3,079

$

(17,395)

$

2,903

$

773

Three Months Ended

Selected Operating 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20Data

Interest and Dividend Income

Loans, Including Fees $ 10,146 $ 10,833 $ 10,709 $ 10,577 $ 10,764

Securities:

Taxable 646 725 753 940 1,201

Tax-Exempt 78 78 79 106 106

Dividends 20 20 19 20 20

Other Interest and 98 99 96 84 238 Dividend Income

Total Interest and 10,988 11,755 11,656 11,727 12,329 Dividend Income

Interest Expense

Deposits 947 1,036 1,150 1,305 1,681

Short-Term Borrowings 23 25 28 39 45

Other Borrowings 41 60 62 62 70

Total Interest Expense 1,011 1,121 1,240 1,406 1,796

Net Interest and 9,977 10,634 10,416 10,321 10,533 Dividend Income

Provision for Loan - - 1,200 300 2,500 Losses

Net Interest andDividend Income After 9,977 10,634 9,216 10,021 8,033 Provision for LoanLosses

Noninterest Income:

Service Fees 546 560 554 487 605

Insurance Commissions 1,595 1,403 1,079 1,113 1,283

Other Commissions 165 105 76 188 110

Net Gain on Sales of 86 388 435 441 127 Loans

Net Gain (Loss) on 447 213 (59) 517 (438) Securities

Net Gain on Purchased 18 16 15 16 15 Tax Credits

Net (Loss) Gain onDisposal of Fixed - (13) (65) - 17 Assets

Income from Bank-Owned 137 140 140 138 139 Life Insurance

Other Income (Loss) 180 (34) (2) (252) 14

Total Noninterest 3,174 2,778 2,173 2,648 1,872 Income

Noninterest Expense:

Salaries and Employee 4,894 5,126 5,124 4,828 4,731 Benefits

Occupancy 710 606 759 699 733

Equipment 266 234 220 224 257

Data Processing 518 476 482 460 425

FDIC Assessment 250 344 172 163 158

PA Shares Tax 265 350 355 333 275

Contracted Services 687 577 531 562 378

Legal and Professional 189 185 161 171 235 Fees

Advertising 140 178 148 155 183

Other Real Estate (38) (39) (12) (1) (17) Owned (Income)

Amortization of 532 532 532 532 532 Intangible Assets

Goodwill Impairment - - 18,693 - -

Writedown of Fixed - 240 884 - - Assets

Other 982 916 919 945 1,113

Total Noninterest 9,395 9,725 28,968 9,071 9,003 Expense

Income (Loss) BeforeIncome Tax Expense 3,756 3,687 (17,579) 3,598 902 (Benefit)

Income Tax Expense 911 608 (184) 695 129 (Benefit)

Net Income (Loss) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773

Three Months Ended

Per Common Share Data

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

Dividends Per Common Share

$

0.24

$

0.24

$

0.24

$

0.24

$

0.24

Earnings (Loss) Per Common Share - Basic

0.52

0.57

(3.22)

0.54

0.14

Earnings (Loss) Per Common Share - Diluted

0.52

0.57

(3.22)

0.54

0.14

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

0.52

0.61

0.34

0.54

0.14

Weighted Average Common Shares Outstanding - Basic

5,434,374

5,404,874

5,395,342

5,393,712

5,431,199

Weighted Average Common Shares Outstanding - Diluted

5,436,881

5,406,068

5,395,342

5,393,770

5,456,867

Three Months Ended

Per Common Share 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20Data

Dividends Per $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Common Share

Earnings (Loss) PerCommon Share - 0.52 0.57 (3.22) 0.54 0.14 Basic

Earnings (Loss) PerCommon Share - 0.52 0.57 (3.22) 0.54 0.14 Diluted

Adjusted EarningsPer Common Share - 0.52 0.61 0.34 0.54 0.14 Diluted (Non-GAAP)^(1)



Weighted AverageCommon Shares 5,434,374 5,404,874 5,395,342 5,393,712 5,431,199 Outstanding - Basic

Weighted AverageCommon Shares 5,436,881 5,406,068 5,395,342 5,393,770 5,456,867 Outstanding -Diluted

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

Common Shares Outstanding

5,434,374

5,434,374

5,398,712

5,393,712

5,393,712

Book Value Per Common Share

$

24.62

$

24.76

$

24.69

$

28.25

$

28.09

Tangible Book Value per Common Share (Non-GAAP) (1)

21.38

21.42

21.23

21.23

20.97

Stockholders' Equity to Assets

9.1

%

9.5

%

9.6

%

10.8

%

11.5

%

Tangible Common Equity to Tangible Assets (Non-GAAP) (1)

8.0

8.3

8.3

8.4

8.9

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

Common Shares 5,434,374 5,434,374 5,398,712 5,393,712 5,393,712 Outstanding

Book Value Per $ 24.62 $ 24.76 $ 24.69 $ 28.25 $ 28.09 Common Share

Tangible Book Valueper Common Share 21.38 21.42 21.23 21.23 20.97 (Non-GAAP) ^(1)

Stockholders' 9.1 % 9.5 % 9.6 % 10.8 % 11.5 %Equity to Assets

Tangible CommonEquity to Tangible 8.0 8.3 8.3 8.4 8.9 Assets (Non-GAAP) ^(1)

Three Months Ended

Selected Financial Ratios (2)

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

Return on Average Assets

0.81

%

0.87

%

(4.90)

%

0.85

%

0.24

%

Adjusted Return on Average Assets (Non-GAAP) (1)

0.81

0.92

0.52

0.85

0.24

Return on Average Equity

8.54

9.13

(45.13)

7.65

2.04

Adjusted Return on Average Equity (Non-GAAP) (1)

8.54

9.72

4.78

7.65

2.04

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

142.98

141.58

141.98

140.72

135.06

Average Equity to Average Assets

9.48

9.49

10.85

11.08

11.67

Net Interest Rate Spread

2.91

3.07

3.03

3.10

3.34

Net Interest Rate Spread (FTE) (Non-GAAP) (1)

2.92

3.08

3.05

3.12

3.35

Net Interest Margin

3.04

3.21

3.19

3.28

3.55

Net Interest Margin (FTE) (Non-GAAP) (1)

3.05

3.22

3.21

3.30

3.57

Net Charge-offs (Recoveries) to Average Loans

0.02

0.39

0.03

(0.01)

0.02

Efficiency Ratio

71.44

72.51

230.11

69.94

72.58

Adjusted Efficiency Ratio (Non-GAAP) (1)

70.06

68.06

69.78

68.58

66.18

Three Months Ended

Selected Financial Ratios ^(2) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

Return on Average Assets 0.81 % 0.87 % (4.90) % 0.85 % 0.24 %

Adjusted Return on Average Assets 0.81 0.92 0.52 0.85 0.24 (Non-GAAP) ^(1)

Return on Average Equity 8.54 9.13 (45.13) 7.65 2.04

Adjusted Return on Average Equity 8.54 9.72 4.78 7.65 2.04 (Non-GAAP) ^(1)

Average Interest-Earning Assetsto Average Interest-Bearing 142.98 141.58 141.98 140.72 135.06 Liabilities

Average Equity to Average Assets 9.48 9.49 10.85 11.08 11.67

Net Interest Rate Spread 2.91 3.07 3.03 3.10 3.34

Net Interest Rate Spread (FTE) 2.92 3.08 3.05 3.12 3.35 (Non-GAAP) ^(1)

Net Interest Margin 3.04 3.21 3.19 3.28 3.55

Net Interest Margin (FTE) 3.05 3.22 3.21 3.30 3.57 (Non-GAAP) ^(1)

Net Charge-offs (Recoveries) to 0.02 0.39 0.03 (0.01) 0.02 Average Loans

Efficiency Ratio 71.44 72.51 230.11 69.94 72.58

Adjusted Efficiency Ratio 70.06 68.06 69.78 68.58 66.18 (Non-GAAP) ^(1)

Asset Quality Ratios

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

Allowance for Loan Losses to Total Loans (3)

1.22

%

1.22

%

1.31

%

1.21

%

1.26

%

Allowance for Loan Losses to Total Loans, Excluding PPP Loans

(Non-GAAP) (1) (3)

1.30

1.29

1.41

1.30

1.26

Allowance for Loan Losses to Nonperforming Loans (3) (4)

89.29

88.15

91.84

226.59

235.51

Allowance for Loan Losses to Noncurrent Loans (3) (5)

118.08

117.20

114.01

390.73

406.80

Delinquent and Nonaccrual Loans to Total Loans (5) (6)

1.18

1.50

1.23

0.39

0.89

Nonperforming Loans to Total Loans (4)

1.37

1.39

1.43

0.54

0.54

Noncurrent Loans to Total Loans (5)

1.03

1.04

1.15

0.31

0.31

Nonperforming Assets to Total Assets (7)

0.98

1.04

1.09

0.41

0.42

Asset Quality Ratios 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

Allowance for Loan Losses to Total 1.22 % 1.22 % 1.31 % 1.21 % 1.26 %Loans ^(3)

Allowance for Loan Losses to TotalLoans, Excluding PPP Loans 1.30 1.29 1.41 1.30 1.26

(Non-GAAP) ^(1) (3)

Allowance for Loan Losses to 89.29 88.15 91.84 226.59 235.51 Nonperforming Loans ^(3) (4)

Allowance for Loan Losses to 118.08 117.20 114.01 390.73 406.80 Noncurrent Loans ^(3) (5)

Delinquent and Nonaccrual Loans to 1.18 1.50 1.23 0.39 0.89 Total Loans ^(5) (6)

Nonperforming Loans to Total Loans 1.37 1.39 1.43 0.54 0.54 ^(4)

Noncurrent Loans to Total Loans ^ 1.03 1.04 1.15 0.31 0.31 (5)

Nonperforming Assets to Total 0.98 1.04 1.09 0.41 0.42 Assets ^(7)

Capital Ratios (8)

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

Common Equity Tier 1 Capital (to Risk Weighted Assets)

11.85

%

11.79

%

11.62

%

11.90

%

11.60

%

Tier 1 Capital (to Risk Weighted Assets)

11.85

11.79

11.62

11.90

11.60

Total Capital (to Risk Weighted Assets)

13.10

13.04

12.88

13.16

12.85

Tier 1 Leverage (to Adjusted Total Assets)

7.87

7.81

7.63

7.90

8.23

(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) Loans acquired in connection with the mergers with FedFirst Financial Corporation and First West Virginia Bancorp were recorded at their estimated fair value at the acquisition date and did not include a carryover of the pre-merger allowance for loan losses. (4) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (5) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (6) Delinquent loans consist of accruing loans that are 30 days or more past due. (7) Nonperforming assets consist of nonperforming loans and other real estate owned. (8) Capital ratios are for Community Bank only.

Certain items previously reported may have been reclassified to conform with the current reporting period's format.

Capital Ratios ^(8) 3/31/21 12/31/ 9/30/20 6/30/20 3/31/20 20

Common Equity Tier 1 Capital (to Risk 11.85 % 11.79 % 11.62 % 11.90 % 11.60 %Weighted Assets)

Tier 1 Capital (to Risk Weighted Assets) 11.85 11.79 11.62 11.90 11.60

Total Capital (to Risk Weighted Assets) 13.10 13.04 12.88 13.16 12.85

Tier 1 Leverage (to Adjusted Total 7.87 7.81 7.63 7.90 8.23 Assets)

(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) Loans acquired in connection with the mergers with FedFirst Financial Corporation and First West Virginia Bancorp were recorded at their estimated fair value at the acquisition date and did not include a carryover of the pre-merger allowance for loan losses. (4) Nonperforming loans consist of nonaccrual loans, accruing loans that are 90 days or more past due, and troubled debt restructured loans. (5) Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due. (6) Delinquent loans consist of accruing loans that are 30 days or more past due. (7) Nonperforming assets consist of nonperforming loans and other real estate owned. (8) 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, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020

Average Interest Yield Average Interest Yield Average Interest Yield Average Interest Yield Average Interest Yield Balance and / Cost Balance and / Cost Balance and / Cost Balance and / Cost Balance and / Cost Dividends ^(4) Dividends ^(4) Dividends ^(4) Dividends ^(4) Dividends ^(4)

(Dollars inthousands) (Unaudited)

Assets:

Interest-Earning Assets:

Loans, Net $ 1,031,853 $ 10,168 4.00 % $ 1,032,942 $ 10,860 4.18 % $ 1,035,426 $ 10,744 4.13 % $ 1,014,000 $ 10,612 4.21 % $ 950,661 $ 10,796 4.57 %

Debt Securities

Taxable 122,883 646 2.10 133,026 725 2.18 123,332 753 2.44 137,268 940 2.74 158,655 1,201 3.03

Exempt From Federal 12,943 96 2.97 13,006 96 2.95 13,054 97 2.97 14,106 130 3.69 16,837 127 3.02 Tax

Equity Securities 2,632 20 3.04 2,612 20 3.06 2,580 19 2.95 2,579 20 3.10 2,568 20 3.12

OtherInterest-Earning 161,871 98 0.25 137,000 99 0.29 123,171 96 0.31 97,033 84 0.35 64,608 238 1.48 Assets

TotalInterest-Earning 1,332,182 11,028 3.36 1,318,586 11,800 3.56 1,297,563 11,709 3.59 1,264,986 11,786 3.75 1,193,329 12,382 4.17 Assets

Noninterest-Earning 92,550 94,262 115,567 113,176 114,056 Assets

Total Assets $ 1,424,732 $ 1,412,848 $ 1,413,130 $ 1,378,162 $ 1,307,385

Liabilities andStockholders' Equity

Interest-Bearing Liabilities:

Interest-Bearing $ 259,065 77 0.12 % $ 252,521 83 0.13 % $ 245,977 99 0.16 $ 236,312 141 0.24 $ 226,482 267 0.47 %Demand Deposits

Savings 239,850 32 0.05 232,647 32 0.05 230,567 32 0.06 227,470 35 0.06 218,328 90 0.17

Money Market 197,395 98 0.20 198,983 131 0.26 185,644 140 0.30 182,656 187 0.41 180,982 249 0.55

Time Deposits 187,114 740 1.60 193,194 790 1.63 198,184 879 1.76 205,847 942 1.84 215,449 1,075 2.01

TotalInterest-Bearing 883,424 947 0.43 877,345 1,036 0.47 860,372 1,150 0.53 852,285 1,305 0.62 841,241 1,681 0.80 Deposits

Short-Term Borrowings

Securities SoldUnder 41,094 23 0.23 43,468 25 0.23 42,512 28 0.26 35,642 39 0.44 29,541 45 0.61 Agreements toRepurchase

Other Borrowings 7,200 41 2.31 10,543 60 2.26 11,000 62 2.24 11,000 62 2.27 12,780 70 2.20

TotalInterest-Bearing 931,718 1,011 0.44 931,356 1,121 0.48 913,884 1,240 0.54 898,927 1,406 0.63 883,562 1,796 0.82 Liabilities

Noninterest-Bearing 349,108 338,223 337,441 317,738 261,504 Demand Deposits

Other Liabilities 8,869 9,176 8,477 8,815 9,797

Total Liabilities 1,289,695 1,278,755 1,259,802 1,225,480 1,154,863

Stockholders' 135,037 134,093 153,328 152,682 152,522 Equity

Total Liabilitiesand Stockholders' $ 1,424,732 $ 1,412,848 $ 1,413,130 $ 1,378,162 $ 1,307,385 Equity

Net Interest Income (FTE)

(Non-GAAP) ^(5) 10,017 10,679 10,469 10,380 10,586

NetInterest-Earning 400,464 387,230 383,679 366,059 309,767 Assets ^(1)

Net Interest Rate Spread (FTE)

(Non-GAAP) ^(2) (5) 2.92 % 3.08 % 3.05 3.12 3.35 %

Net Interest Margin (FTE)

(Non-GAAP)^ (3)(5) 3.05 3.22 3.21 3.30 3.57

(1) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (2) 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. (3) Net interest margin represents net interest income divided by average total interest-earning assets. (4) Annualized. (5) 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.

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. 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 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.

Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in analyzing the Company's operating results on the same basis as that applied by management. Non-GAAP adjusted items reflect non-cash charges related to goodwill impairment and a writedown on fixed assets from the Monessen branch closure.

Three Months Ended

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

(Dollars inthousands, exceptshare and per share data)(Unaudited)



Net Income (Loss) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 (GAAP)



Non-Cash Charges:

Goodwill - - 18,693 - - Impairment

Writedown on Fixed - 240 884 - - Assets

Tax Effect - (42) (338) - -

Adjusted Net $ 2,845 $ 3,277 $ 1,844 $ 2,903 $ 773 Income (Non-GAAP)



Weighted-AverageDiluted CommonShares and Common 5,436,881 5,406,068 5,395,342 5,393,770 5,456,867 StockEquivalentsOutstanding



Earnings (Loss)per Common Share - $ 0.52 $ 0.57 $ (3.22) $ 0.54 $ 0.14 Diluted (GAAP)

Goodwill - - 3.46 - - Impairment

Writedown on Fixed - 0.04 0.16 - - Assets

Tax Effect - (0.01) (0.06) - -

Adjusted Earningsper Common Share - $ 0.52 $ 0.61 $ 0.34 $ 0.54 $ 0.14 Diluted (Non-GAAP)



Net Income (Loss) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 (GAAP) (Numerator)



Annualization 4.06 3.98 3.98 4.02 4.02 Factor



Average Assets 1,424,732 1,412,848 1,413,130 1,378,162 1,307,385 (Denominator)



Return on Average 0.81 % 0.87 % (4.90) % 0.85 % 0.24 %Assets (GAAP)



Adjusted NetIncome (Non-GAAP) $ 2,845 $ 3,277 $ 1,844 $ 2,903 $ 773 (Numerator)



Annualization 4.06 3.98 3.98 4.02 4.02 Factor



Average Assets 1,424,732 1,412,848 1,413,130 1,378,162 1,307,385 (Denominator)



Adjusted Return onAverage Assets 0.81 % 0.92 % 0.52 % 0.85 % 0.24 %(Non-GAAP)

Three Months Ended

3/31/21

12/31/20

9/30/20

6/30/20

3/31/20

(Dollars in thousands) (Unaudited)

Net Income (Loss) (GAAP) (Numerator)

$

2,845

$

3,079

$

(17,395)

$

2,903

$

773

Annualization Factor

4.06

3.98

3.98

4.02

4.02

Average Equity (Denominator)

135,037

134,093

153,328

152,682

152,522

Return on Average Equity (GAAP)

8.54

%

9.13

%

(45.13)

%

7.65

%

2.04

%

Adjusted Net Income (Loss) (GAAP) (Numerator)

$

2,845

$

3,079

$

(17,395)

$

2,903

$

773

Annualization Factor

4.06

3.98

3.98

4.02

4.02

Average Equity (Denominator)

135,037

134,093

153,328

152,682

152,522

Adjusted Return on Average Equity (Non-GAAP)

8.54

%

9.72

%

4.78

%

7.65

%

2.04

%

Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company's total value.

Three Months Ended

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

(Dollars in thousands) (Unaudited)



Net Income (Loss) (GAAP) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 (Numerator)



Annualization Factor 4.06 3.98 3.98 4.02 4.02



Average Equity 135,037 134,093 153,328 152,682 152,522 (Denominator)



Return on Average Equity 8.54 % 9.13 % (45.13) % 7.65 % 2.04 %(GAAP)



Adjusted Net Income (Loss) $ 2,845 $ 3,079 $ (17,395) $ 2,903 $ 773 (GAAP) (Numerator)



Annualization Factor 4.06 3.98 3.98 4.02 4.02



Average Equity 135,037 134,093 153,328 152,682 152,522 (Denominator)



Adjusted Return on Average 8.54 % 9.72 % 4.78 % 7.65 % 2.04 %Equity (Non-GAAP)

Tangible book value per common share is a non-GAAP measure and is calculated based on tangible common equity divided by period-end common shares outstanding. Tangible common equity to tangible assets is a non-GAAP measure and is calculated based on tangible common equity divided by tangible assets. We believe these non-GAAP measures serve as useful tools to help evaluate the strength and discipline of the Company's capital management strategies and as an additional, conservative measure of the Company's total value.

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

(Dollars inthousands,except share and per sharedata)(Unaudited)



Assets (GAAP) $ 1,476,821 $ 1,416,720 $ 1,392,876 $ 1,407,152 $ 1,313,173

Goodwill andOther (17,599) (18,131) (18,663) (37,888) (38,420) IntangibleAssets, Net

TangibleAssets $ 1,459,222 $ 1,398,589 $ 1,374,213 $ 1,369,264 $ 1,274,753 (Non-GAAP)(Numerator)



Stockholders' $ 133,776 $ 134,530 $ 133,299 $ 152,392 $ 151,525 Equity (GAAP)

Goodwill andOther (17,599) (18,131) (18,663) (37,888) (38,420) IntangibleAssets, Net

TangibleCommon Equityor Tangible $ 116,177 $ 116,399 $ 114,636 $ 114,504 $ 113,105 Book Value(Non-GAAP)(Denominator)



Stockholders'Equity to 9.1 % 9.5 % 9.6 % 10.8 % 11.5 %Assets (GAAP)

TangibleCommon Equityto Tangible 8.0 % 8.3 % 8.3 % 8.4 % 8.9 %Assets(Non-GAAP)



Common SharesOutstanding 5,434,374 5,434,374 5,398,712 5,393,712 5,393,712 (Denominator)



Book Valueper Common $ 24.62 $ 24.76 $ 24.69 $ 28.25 $ 28.09 Share (GAAP)

Tangible BookValue per $ 21.38 $ 21.42 $ 21.23 $ 21.23 $ 20.97 Common Share(Non-GAAP)

Interest income on interest-earning assets, net interest rate spread and net interest margin are presented on a fully tax-equivalent ("FTE") basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and securities using the federal statutory income tax rate of 21 percent. We believe the presentation of net interest income on a FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. The following table reconciles net interest income, net interest spread and net interest margin on a FTE basis for the periods indicated:

Three Months Ended

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

(Dollars in thousands) (Unaudited)



Interest Income perConsolidated Statement $ 10,988 $ 11,755 $ 11,656 $ 11,727 $ 12,329 of Operations (GAAP)

Adjustment to FTE Basis 40 45 53 59 53

Interest Income (FTE) 11,028 11,800 11,709 11,786 12,382 (Non-GAAP)

Interest Expense perConsolidated Statement 1,011 1,121 1,240 1,406 1,796 of Operations (GAAP)

Net Interest Income $ 10,017 $ 10,679 $ 10,469 $ 10,380 $ 10,586 (FTE) (Non-GAAP)



Net Interest Rate Spread 2.91 % 3.07 % 3.03 % 3.10 % 3.34 %(GAAP)

Adjustment to FTE Basis 0.01 0.01 0.02 0.02 0.01

Net Interest Rate Spread 2.92 3.08 3.05 3.12 3.35 (FTE) (Non-GAAP)



Net Interest Margin 3.04 % 3.21 % 3.19 % 3.28 % 3.55 %(GAAP)

Adjustment to FTE Basis 0.01 0.01 0.02 0.02 0.02

Net Interest Margin 3.05 3.22 3.21 3.30 3.57 (FTE) (Non-GAAP)

Adjusted efficiency ratio excludes the effect of certain non-recurring or non-cash items and represents adjusted noninterest expense divided by adjusted operating revenue. The Company evaluates its operational efficiency based on its adjusted efficiency ratio and believes it provides additional perspective on its ongoing performance as well as peer comparability.

Three Months Ended

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

(Dollars in thousands) (Unaudited)



Noninterest expense (GAAP) $ 9,395 $ 9,725 $ 28,968 $ 9,071 $ 9,003



Net Interest and Dividend Income 9,977 10,634 10,416 10,321 10,533 (GAAP)



Noninterest Income (GAAP) 3,174 2,778 2,173 2,648 1,872

Operating Revenue (GAAP) 13,151 13,412 12,589 12,969 12,405

Efficiency Ratio (GAAP) 71.44 % 72.51 % 230.11 % 69.94 % 72.58 %



Noninterest expense (GAAP) $ 9,395 $ 9,725 $ 28,968 $ 9,071 $ 9,003

Less:

Other Real Estate Owned (Income) (38) (39) (12) (1) (17)

Amortization of Intangible 532 532 532 532 532 Assets

Goodwill Impairment - - 18,693 - -

Writedown on Fixed Assets - 240 884 - -

Adjusted Noninterest Expense $ 8,901 $ 8,992 $ 8,871 $ 8,540 $ 8,488 (Non-GAAP)



Net Interest and Dividend Income 9,977 10,634 10,416 10,321 10,533 (GAAP)

Noninterest Income (GAAP) 3,174 2,778 2,173 2,648 1,872

Less:

Net Gain (Loss) on Securities 447 213 (59) 517 (438)

Net (Loss) Gain on Disposal of - (13) (65) - 17 Fixed Assets

Adjusted Noninterest Income 2,727 2,578 2,297 2,131 2,293 (Non-GAAP)

Adjusted Operating Revenue 12,704 13,212 12,713 12,452 12,826 (Non-GAAP)

Adjusted Efficiency Ratio 70.06 % 68.06 % 69.78 % 68.58 % 66.18 %(Non-GAAP)

Allowance for loan losses to total loans, excluding PPP loans, is a non-GAAP measure that serves as a useful measurement to evaluate the allowance for loan losses without the impact of SBA guaranteed loans.

3/31/21 12/31/20 9/30/20 6/30/20 3/31/20

(Dollars inthousands) (Unaudited)



Allowance for $ 12,725 $ 12,771 $ 13,780 $ 12,648 $ 12,322 Loan Losses



Total Loans 1,041,697 $ 1,044,753 1,050,885 $ 1,042,159 $ 974,650

PPP Loans (60,380) (55,096) (71,028) (70,028) -

Total Loans,Excluding PPP $ 981,317 $ 989,657 $ 979,857 $ 972,131 $ 974,650 Loans(Non-GAAP)



Allowance forLoan Losses to Total Loans,Excluding

PPP Loans 1.30 1.29 1.41 1.30 1.26(Non-GAAP) % % % % %

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504005732/en/

CONTACT: Company Contact: John H. Montgomery President and Chief Executive Officer Phone: (724) 225-2400

CONTACT: Investor Relations: Adam Prior, Senior Vice President The Equity Group Inc. Phone: (212) 836-9606 Email: aprior@equityny.com