CB Financial Services, Inc. (CBFV): Business Model Canvas [Dec-2025 Updated]

You're looking at CB Financial Services, Inc. (CBFV) right after some big balance sheet moves this year, and you want to know exactly how they make money now. Honestly, the story is about shifting focus: they've built a solid, community-focused bank with $1.55 billion in assets as of Q3 2025, but the real action is in their strategic pivot. They are pushing commercial and industrial lending, which is already 59% of their book, while simultaneously engineering their balance sheet to boost Net Interest Margin by a projected 19 bps long-term-all while keeping nonperforming loans incredibly low at just 0.19%. This canvas breaks down the nine core blocks of their operation, from their relationship-driven customer service to their key partnerships, so you can see the precise mechanics behind their $13.1 million Net Interest Income in the third quarter. Dive in below to see the full map.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships CB Financial Services, Inc. (CBFV) relies on to run Community Bank, its wholly owned subsidiary, as of late 2025. These partnerships are critical for service delivery, funding, and regulatory adherence.

Affiliation with The Bishop Group of Janney, Montgomery Scott for wealth management

CB Financial Services, Inc. supports its wealth management offering through a direct affiliation. Community Bank offers wealth management services by partnering with The Bishop Group of Janney, Montgomery Scott. This relationship allows CBFV to provide specialized investment advice to its client base without needing to build the entire infrastructure internally.

Correspondent banks for treasury and liquidity management

Managing treasury and liquidity involves external funding sources and strategic deposit initiatives. The company is focused on scaling its Treasury Management rollout, with initial implementation expected near the end of 2025. To fund securities purchases, the use of wholesale funding was evident, with brokered Certificates of Deposit (CDs) increasing to $79.0 million as of Q2 2025, up from $39.0 million at year-end 2024. This highlights a reliance on external funding sources to manage asset/liability mix.

Technology vendors for core banking systems and digital platforms

CB Financial Services, Inc. has invested in upgrading its operational backbone. During 2024, the company implemented a new enterprise-wide loan origination system. Furthermore, a redesigned residential mortgage program was rolled out that same year. These technology enhancements rely on external vendor support for implementation and maintenance, though specific vendor names aren't detailed here.

Federal regulatory bodies (FDIC, Federal Reserve) for compliance oversight

As a Pennsylvania-chartered commercial bank operating across Pennsylvania and West Virginia, Community Bank is under the watchful eye of federal and state regulators, including the FDIC and the Federal Reserve. The oversight is applied to a bank with 159 full-time employees as of late 2025. The scale of operations subject to this oversight is significant, with total assets reported at $1.52 billion at June 30, 2025. The loan portfolio, totaling $1,143,386,000 as of September 30, 2025, is a key area of focus. Here are some key operational metrics relevant to regulatory review for the nine months ended September 30, 2025:

The bank's operational efficiency, as shown by the 64.9% efficiency ratio in Q2 2025, and its asset quality, with NPLs/loans at 0.16% in Q2 2025, are metrics regulators track closely. The company is actively managing its balance sheet, having executed a securities portfolio repositioning on September 2, 2025.

The CEO's total compensation for 2025 was reported at $728,547.

Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Key Activities

You're looking at the core actions CB Financial Services, Inc. takes to run its business as of late 2025. These aren't just things they do; they are the specific, measurable activities driving their current financial shape.

Commercial and industrial loan origination is a major focus, actively shifting the composition of the lending book. Management is redeploying repayments from older loan types, like indirect automobile and residential mortgages, into these higher-yielding commercial products. This strategic pivot resulted in Commercial loans making up 59.8% of the Bank's total loan portfolio as of September 30, 2025, up from 53.8% at September 30, 2024. Total loans stood at $1,143,386,000 at that same date.

The activity of core deposit gathering is essential for maintaining a low-cost funding base. The Bank is executing a targeted effort to build core banking relationships while strategically reducing reliance on more expensive funding sources. This focus helped lower the cost of funds to 1.86% for the three months ended September 30, 2025, down from 1.89% in the prior period. At March 31, 2025, core deposits already represented 79% of total deposits.

Strategic balance sheet repositioning is a key activity aimed directly at boosting the Net Interest Margin (NIM). This involved selling off older, lower-yielding assets. Specifically, $129.6 million in book value of lower-yielding investment securities, which carried an average yield of 2.87%, were sold, resulting in an after-tax realized loss of $9.3 million. This repositioning, along with deposit mix changes, helped push the NIM up to 3.64% for the three months ended September 30, 2025, compared to 3.11% in the year-ago quarter. Management projects this repositioning will add approximately 19 basis points to the NIM going forward.

The deployment of the Specialty Treasury Payments & Services program is a forward-looking activity designed to secure sticky, non-interest-bearing deposits. The initial phase of building the Treasury Management (TM) and Specialized Deposit Division was targeted for completion by Q4 2025, with estimated 2025 personnel costs of $1.1 million. The expected deposit generation from this two-pronged strategy was projected to be approximately $120 million by the end of Q4 2025, with the program itself expected to drive around $60 million of deposits by Q4 2025.

Finally, the day-to-day activity of managing the asset portfolio requires constant oversight. As of Q3 2025, the total asset base CB Financial Services, Inc. was managing stood at $1.55 billion. Credit quality management remains tight, with nonperforming loans to total loans at 0.19% on September 30, 2025.

Here's a quick look at the key financial metrics tied to these activities as of Q3 2025:

The operational focus areas supporting these activities include:

• Executing securities repositioning, selling securities yielding 2.87% average.
• Focusing loan production on commercial products over indirect auto loans.
• Managing personnel additions to the Treasury function, with estimated 2025 costs of $1.1 million.
• Maintaining a conservative balance sheet while managing risk across the loan portfolio.

Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Key Resources

You're looking at the core assets CB Financial Services, Inc. (CBFV) relies on to execute its banking model. These aren't just line items; they are the engine and the footprint of Community Bank.

The balance sheet strength provides the foundation for lending and operations. As of the second quarter close, Total Assets stood at $1.52 billion at June 30, 2025. This figure reflects growth of $34.5 million from March 31, 2025. That growth was largely fueled by strong commercial real estate and commercial and industrial loan production, funded by rising core deposit accounts.

Capital strength is key for a community bank, showing it can absorb unexpected losses. While the specific Tier 1 Leverage ratio you noted isn't in the latest filings I see, the capital position remains robust, as indicated by the Average Equity to Average Assets ratio for the first quarter of 2025, which was 10.07%. This compares to 9.63% at the end of 2024. Asset quality is also a resource, with nonperforming loans to total loans at 0.22% as of March 31, 2025.

The personnel are central to the relationship-focused model. This includes experienced management and relationship-focused staff driving commercial loan growth, which comprised 56% of the loan portfolio as of March 31, 2025.

The physical footprint is concentrated in core markets. As of September 30, 2025, Community Bank operates its retail branch network across southwestern Pennsylvania and West Virginia. This network consists of:

• Nine offices in southwestern Pennsylvania (Greene, Allegheny, Washington, Fayette, and Westmoreland Counties).
• Three offices in West Virginia (Marshall and Ohio Counties).

The technology infrastructure supports the physical network and digital customer experience. Investments here help manage the balance sheet and offer modern services. The company provides online banking, mobile banking, cash management, and merchant services.

Here's a quick look at the asset base supporting these operations:

The management team is actively working on balance sheet repositioning, moving away from brokered time deposits and redeploying repayments into higher-yielding commercial loan products. That's a clear action based on their existing resource base.

Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Value Propositions

You're looking at the core reasons why clients choose CB Financial Services, Inc. over larger institutions. It boils down to a deliberate mix of local presence and sophisticated financial engineering.

Community-focused, personalized banking service model

CB Financial Services, Inc. delivers its value proposition through a community-oriented approach, operating its retail and commercial network across Southwestern Pennsylvania and West Virginia. This structure supports relationship-driven banking, meaning decisions are rooted locally, which is a key differentiator for its customer base.

• Operates a retail and commercial network across Pennsylvania and West Virginia.
• Focuses on relationship-driven banking for individuals and businesses.

Full suite of retail and commercial lending and deposit products

The bank provides a comprehensive set of financial tools, balancing core deposit gathering with varied lending activities. The total loan portfolio as of the third quarter of 2025 stood at $1,143,386,000. This portfolio is segmented to serve diverse needs across the region.

Deposit products are standard for a community bank, including checking accounts, savings accounts, money market accounts, and certificates of deposit. Furthermore, ancillary services like online banking, mobile banking, cash management, and merchant services complement the in-person service.

High asset quality with nonperforming loans at a very low 0.19% (Q3 2025)

Asset quality is a cornerstone of the value proposition, signaling prudent underwriting and risk management. The nonperforming loans (NPLs) ratio is exceptionally low, which provides confidence in the loan book's health. This low NPL figure is supported by a substantial allowance set aside for potential credit losses.

The Allowance for Credit Losses (ACL) to total loans was 0.89% at September 30, 2025, showing management's conservative stance on credit risk.

Strategic balance sheet moves designed to add 19 bps to NIM long-term

CB Financial Services, Inc. is actively engineering its balance sheet for better future returns, even taking a short-term accounting hit to achieve this. The management anticipates this proactive repositioning will add approximately 19 basis points to the Net Interest Margin (NIM) over the long term. The current GAAP NIM for Q3 2025 already reflects some of this positive momentum, having expanded to 3.64%.

Here's the quick math on the securities trade that drives this: the bank sold $129.6 million in securities yielding an average of 2.87% and plans to reinvest $117.8 million into assets yielding approximately 5.51%.

Wealth management services through a trusted third-party affiliation

To broaden its service offering without building out an entire internal division, CB Financial Services, Inc. uses a third-party relationship for wealth management. This allows the bank to offer sophisticated investment products while relying on an established partner for execution and compliance expertise. The wealth management services are provided through an affiliation with the Bishop Group of Janney, Montgomery Scott.

• Wealth management services are channeled via the Bishop Group of Janney, Montgomery Scott.
• The bank provides commercial and personal insurance brokerage via its wholly owned subsidiary, Exchange Underwriters, Inc.

The quarterly cash dividend declared in Q3 2025 was $0.26 per share, showing a commitment to returning capital to shareholders alongside these strategic moves. Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Customer Relationships

You're looking at how CB Financial Services, Inc. keeps its clients close, which is key to their strategy of moving away from simple transactional banking. They are actively building meaningful relationships to enhance franchise value, a stated goal as they limit purely transactional interactions.

This focus translates directly into how they serve you. CB Financial Services, Inc. emphasizes a high-touch, personalized service model. To help their experienced bankers deliver this, they established a dedicated retail support team in 2024, staffed with experienced personnel to enhance the client experience. This commitment to quality interaction is a core part of their relationship-driven loan production strategy.

The results of this relationship focus are statistically visible. CB Financial Services, Inc. achieved an overall customer satisfaction score of 4.5 out of 5 as of their 2024 reporting, which they view as a strong indicator of delivering an exceptional client experience. Furthermore, in 2024, they saw a 29% increase in their client promoter score when compared to two years prior. This dedication to service excellence was recognized externally; CB Financial Services, Inc. was honored as a Best Regional Bank in America by Newsweek for 2025, marking the second consecutive year for this recognition.

You can see the scale of the operation supporting these relationships. As of the third quarter of 2025, CB Financial Services, Inc. managed total assets of $1.55 billion. Their physical presence, which facilitates these personal connections, includes 12 full-service branch offices and two loan production offices across southwestern Pennsylvania and northern West Virginia. The emphasis on deep, tailored relationships is also reflected in their lending mix, where commercial loans made up 59.8% of the total loan portfolio at September 30, 2025.

Here's a quick look at the relationship-centric metrics and structure as of late 2025:

The elements supporting this relationship model include:

• Focus on relationship driven loan production.
• Emphasis on personalized service and local decision-making.
• Tailored financial solutions for customers.
• Staffing of experienced personnel on the retail support team.
• Community engagement as a core positioning strength.

If onboarding takes 14+ days, churn risk rises, so the efficiency of that initial high-touch interaction is defintely critical.

Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Channels

You're looking at how CB Financial Services, Inc. gets its services to customers as of late 2025. It's a mix of traditional brick-and-mortar and digital touchpoints, which is typical for a community bank of this size.

The physical footprint is concentrated in specific counties across two states. As of the third quarter of 2025, Community Bank operates its retail and commercial network across these locations:

• Pennsylvania Offices: 9 offices in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties.
• West Virginia Offices: 3 offices in Marshall and Ohio Counties.

This translates to a total of 12 physical locations, which includes the 12 full-service branch offices mentioned in earlier 2025 reports, alongside 2 Loan Production Offices (LPOs).

For digital access, the bank channels services through its online and mobile banking platforms for both retail and business clients. While specific user counts aren't public, these platforms support ancillary services like cash management and merchant services.

The direct sales effort for commercial and industrial lending is supported by ongoing talent acquisition. As of March 31, 2025, CB Financial Services, Inc. was evaluating and hiring additional Commercial Banking talent, with estimated 2025 personnel costs for this effort at $900,000. This focus on expanding the commercial lending team was noted as a factor contributing to growth as of January 2025.

For stockholder and public communication, the Investor Relations website is the primary hub. Key documents available to the public include the 2025 Q3 Fact Sheet and investor presentations, such as the one titled October 2025 - Realizing Dreams. Protecting Futures. Improving Lives..

Here's a quick look at the scale of the loan portfolio that these channels are servicing as of September 30, 2025:

The bank's total assets stood at $1.55 billion as of September 30, 2025, up 4.3% since December 31, 2024.

The channels also support deposit services, with total deposits reported at $1.28 billion as of December 31, 2024. By Q3 2025, the net interest margin improved to 3.64%.

The company also has a stated commitment to shareholder communication via a repurchase program:

• Authorized repurchase amount: up to $5 million.
• Program termination date: September 30, 2026.
• Shares potentially encompassed (based on Sep 3, 2025 price): 153,233 shares.

Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Customer Segments

You're looking at the core groups CB Financial Services, Inc. (CBFV), through its subsidiary Community Bank, serves across its operating area. Honestly, for a community bank, the customer segments are tightly linked to geography and the types of lending that support that local economy.

The bank's physical footprint defines the primary market for its retail and commercial services. Community Bank operates its branch network across specific counties, which directly informs who they serve.

• Geographical Footprint: Nine offices in southwestern Pennsylvania, specifically in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties.
• Geographical Footprint: Three offices in West Virginia, located in Marshall and Ohio Counties.

The lending activity gives us the clearest view of the mix between individuals and businesses. As of September 30, 2025, the total loans on the books amounted to $1,143,386,000.

The focus on commercial activity is quite pronounced, showing a strategic emphasis on business clients. For instance, commercial loans represented 59% of the loan portfolio at June 30, 2025, up from 53% a year prior.

Here's a look at the detailed loan portfolio composition, using the latest full breakdown available from year-end 2024, which sets the stage for 2025 lending focus:

The segment for Individuals and families in the regional footprint is served through retail banking products like demand deposits, NOW accounts, money market accounts, savings accounts, residential mortgages, home equity lines of credit, and various consumer loan products.

The segment for Small to mid-sized businesses (commercial and industrial) is a key driver, evidenced by the 59% commercial loan weighting at mid-2025. This group uses commercial real estate loans, commercial and industrial financing, and ancillary services like cash management and merchant services.

For Agricultural clients within the operating region, CB Financial Services, Inc. provides specific agricultural loans, complementing its broader retail and commercial offerings. This segment is explicitly targeted alongside individuals and small businesses.

Finally, there is the segment of Stockholders seeking a sustainable dividend of $0.26 per share quarterly. The company has maintained a consistent payout, with the latest quarterly dividend declared at $0.26 per share, which was paid on November 28, 2025, to shareholders of record before the November 14, 2025 ex-dividend date. This represents an annual dividend of $1.04, with a payout ratio reported at 43.78% based on past year earnings per share of $0.74.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Cost Structure

You're looking at the expense side of the CB Financial Services, Inc. (CBFV) operation as of late 2025. The cost structure is heavily influenced by funding costs and the necessary overhead to support a high-touch service model while investing in digital future-proofing.

The core funding cost, Interest Expense, showed significant improvement, declining to \$6.2 million in Q3 2025. That was a 24.8% drop year-over-year, driven by lower deposit costs and balances, which is a positive sign for margin management.

The operating costs, Noninterest Expense, were reported at \$9.2 million for Q3 2025, marking a 4.6% increase from the same quarter last year. This increase reflects the ongoing investment in the service model and regulatory requirements.

Here's a quick breakdown of the key components making up that cost base, especially those tied to strategic initiatives:

• Personnel costs (salaries and benefits) support the high-touch service model you expect from Community Bank.
• Technology and infrastructure investments are targeted for digital enhancement, like the new loan origination system implemented in the prior year.
• Regulatory compliance and professional fees are a constant factor in banking overhead.

To give you a clearer picture of the hard numbers we see for the cost base, including estimates for the new strategic build-out:

The higher Noninterest Expense in Q3 2025 specifically included increases in salaries, benefits, and professional fees, which offset lower amortization and occupancy costs. For context on the compliance portion, general industry data suggests smaller institutions allocate between 2.9% and 8.7% of their non-interest expenses to compliance.

The investments in the Treasury Management (TM) and Commercial Banking expansion are significant cost drivers for the year, with the initial phase of the TM build-out expected to be completed by 4Q25.

• The cost for building the TM division staff was estimated at \$1.1 million for 2025.
• The technology spend for upgrading or implementing new TM products was estimated at \$700,000 for 2025.
• Contracted services, which cover items like cybersecurity support and treasury product consulting, showed an increase in a prior period, indicating ongoing professional service costs.

Finance: draft 13-week cash view by Friday.

CB Financial Services, Inc. (CBFV) - Canvas Business Model: Revenue Streams

You're looking at how CB Financial Services, Inc. (CBFV) actually brings in the money, which is key to understanding its value proposition. For a community bank like CBFV, the core is definitely the spread between what it earns on assets and what it pays for liabilities, but they are clearly pushing non-interest income streams too.

The primary engine for revenue remains the net interest spread. For the third quarter of 2025, Net Interest and Dividend Income (NII) was reported at $13.1 million. This shows solid growth, up 14.2% year-over-year compared to Q3 2024.

Here's a quick breakdown of the components that make up the total interest and dividend income for Q3 2025:

The interest income on loans, at $16.0 million for the quarter, was driven by an increase in the average loan balance to $1.12 billion from $1.06 billion the prior year, contributing an $830,000 increase. The average yield on loans also nudged up 8 basis points to 5.68%.

Now, let's look at the non-interest income, which captures fees and other sources. The reported Noninterest Income for Q3 2025 was a loss of $10.7 million, largely due to a significant, strategic $11.8 million loss on securities sold as part of the balance sheet repositioning. Honestly, you have to look past that one-time event to see the underlying fee generation. Excluding that securities loss, noninterest income actually increased by 26.5% year-over-year. For context, in Q2 2025, noninterest income was $931,000, which was up 35.3% from the prior year, primarily from service fees on corporate deposit and Individual Covered Health Reimbursement Arrangement accounts.

CB Financial Services, Inc. generates revenue from ancillary services, which include fees from deposit services and other noninterest income sources. You can see the areas they are focusing on for fee growth:

• Service fees related to corporate deposit accounts.
• Fees from Individual Covered Health Reimbursement Arrangement accounts.
• Wealth management service fees generated through the Bishop Group affiliation.

Regarding wealth management service fees from the Bishop Group affiliation, the fee structure is transparent, designed to align with client asset growth. The structure is 0.6% for assets under $1 million and 0.3% for each dollar over $1 million. While I don't have the specific Q3 2025 revenue number from this segment, this structure is what supports that revenue stream.

A major focus for future revenue growth is the Specialty Treasury Payments & Services program. Management confirmed that the program is nearing full deployment, with full operational status expected by the end of the year, late 2025. This is viewed as a high-value investment intended to drive sustainable revenue growth and expand the core deposit base. The successful execution of this program is a key catalyst management is watching.

Finance: draft 13-week cash view by Friday.