10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 001-36706

CB FINANCIAL SERVICES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	51-0534721
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

100 N. Market Street, Carmichaels, PA	15320
(Address of principal executive offices)	(Zip Code)

(724) 966-5041

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Common stock, par value $0.4167 per share	CBFV	The Nasdaq Stock Market, LLC
(Title of each class)	(Trading symbol)	(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 5, 2021, the number of shares outstanding of the Registrant’s Common Stock was 5,296,539.

FORM 10-Q

INDEX

	Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)	1
Consolidated Statements of Financial Condition	1
Consolidated Statements of Income (Loss)	2
Consolidated Statements of Comprehensive Income (Loss)	3
Consolidated Statements of Changes In Stockholders’ Equity	4
Consolidated Statements of Cash Flows	6
Notes to the Consolidated Financial Statements (Unaudited)	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	36
Item 3. Quantitative and Qualitative Disclosure about Market Risk.	52
Item 4. Controls and Procedures.	54
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.	54
Item 1A. Risk Factors.	54
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	54
Item 3. Defaults Upon Senior Securities.	55
Item 4. Mine Safety Disclosures.	55
Item 5. Other Information.	55
Item 6. Exhibits	55
SIGNATURES	56

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	(Unaudited) September 30, 2021		December 31, 2020
(Dollars in thousands, except per share and share data)
ASSETS
Cash and Due From Banks:
Interest Bearing	$	131,835	$	145,636
Non-Interest Bearing	41,688		15,275
Total Cash and Due From Banks	173,523		160,911
Securities:
Available-for-Sale Debt Securities, at Fair Value	218,529		142,897
Equity Securities, at Fair Value	2,822		2,503
Total Securities	221,351		145,400
Loans Held for Sale	17,407		—
Loans, Net of Allowance for Loan Losses of $11,581 and $12,771 at September 30, 2021 and December 31, 2020, Respectively	990,018		1,031,982
Premises and Equipment Held for Sale	795		—
Premises and Equipment, Net	18,502		20,302
Bank-Owned Life Insurance	25,190		24,779
Goodwill	9,732		9,732
Intangible Assets, Net	5,740		8,399
Accrued Interest Receivable and Other Assets	12,560		15,215
TOTAL ASSETS	$	1,474,818	$	1,416,720
LIABILITIES
Deposits Held for Sale	$	102,647	$	—
Deposits:
Non-Interest Bearing Demand Deposits	373,320		340,569
NOW Accounts	244,004		259,870
Money Market Accounts	190,426		199,029
Savings Accounts	232,679		235,088
Time Deposits	144,727		190,013
Total Deposits	1,185,156		1,224,569
Short-Term Borrowings	42,623		41,055
Other Borrowings	6,000		8,000
Accrued Interest Payable and Other Liabilities	7,405		8,566
TOTAL LIABILITIES	1,343,831		1,282,190
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value; 5,000,000 Shares Authorized	—		—
Common Stock, $0.4167 Par Value; 35,000,000 Shares Authorized, 5,680,993 Shares Issued and 5,330,401 and 5,434,374 Shares Outstanding at September 30, 2021 and December 31, 2020, Respectively	2,367		2,367
Capital Surplus	83,130		82,723
Retained Earnings	51,839		51,132
Treasury Stock, at Cost (350,592 and 246,619 Shares at September 30, 2021 and December 31, 2020, Respectively)	(7,483)		(5,094)
Accumulated Other Comprehensive Income	1,134		3,402
TOTAL STOCKHOLDERS' EQUITY	130,987		134,530
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,474,818	$	1,416,720

The accompanying notes are an integral part of these consolidated financial statements

1

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands, except share and per share data)
INTEREST AND DIVIDEND INCOME
Loans, Including Fees	$	9,718	$	10,709	$	29,800	$	32,050
Investment Securities:
Taxable	843		753		2,124		2,894
Tax-Exempt	71		79		223		291
Dividends	19		19		63		59
Other Interest and Dividend Income	135		96		384		418
TOTAL INTEREST AND DIVIDEND INCOME	10,786		11,656		32,594		35,712
INTEREST EXPENSE
Deposits	715		1,150		2,489		4,136
Short-Term Borrowings	25		28		72		112
Other Borrowings	36		62		112		194
TOTAL INTEREST EXPENSE	776		1,240		2,673		4,442
NET INTEREST AND DIVIDEND INCOME	10,010		10,416		29,921		31,270
Provision (Recovery) For Loan Losses	—		1,200		(1,200)		4,000
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR LOAN LOSSES	10,010		9,216		31,121		27,270
NONINTEREST INCOME
Service Fees	602		554		1,762		1,646
Insurance Commissions	1,194		1,079		3,998		3,475
Other Commissions	93		76		431		374
Net Gain on Sales of Loans	49		435		166		1,003
Net Gain (Loss) on Securities	24		(59)		482		20
Net Gain on Purchased Tax Credits	18		15		53		46
Net Loss on Disposal of Fixed Assets	—		(65)		(3)		(48)
Income from Bank-Owned Life Insurance	138		140		411		417
Other Income (Loss)	80		(2)		291		(240)
TOTAL NONINTEREST INCOME	2,198		2,173		7,591		6,693
NONINTEREST EXPENSE
Salaries and Employee Benefits	4,787		5,124		14,757		14,683
Occupancy	615		759		2,349		2,191
Equipment	205		220		782		701
Data Processing	541		482		1,666		1,367
FDIC Assessment	293		172		792		493
PA Shares Tax	224		355		714		963
Contracted Services	1,441		531		2,878		1,471
Legal and Professional Fees	180		161		788		567
Advertising	225		148		558		486
Other Real Estate Owned Income	(89)		(12)		(153)		(30)
Amortization of Intangible Assets	446		532		1,481		1,596
Intangible Assets Impairment	—		18,693		1,178		18,693
Writedown of Fixed Assets	2		884		2,270		884
Other Expense	903		919		2,830		2,977
TOTAL NONINTEREST EXPENSE	9,773		28,968		32,890		47,042
Income (Loss) Before Income Tax Expense (Benefit)	2,435		(17,579)		5,822		(13,079)
Income Tax Expense (Benefit)	452		(184)		1,217		640
NET INCOME (LOSS)	$	1,983	$	(17,395)	$	4,605	$	(13,719)
EARNINGS (LOSS) PER SHARE
Basic	$	0.37	$	(3.22)	$	0.85	$	(2.54)
Diluted	0.37		(3.22)		0.85		(2.54)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	5,373,032		5,395,342		5,412,989		5,406,710
Diluted	5,390,128		5,395,342		5,420,792		5,406,710

The accompanying notes are an integral part of these consolidated financial statements

2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Net Income (Loss)	$	1,983	$	(17,395)	$	4,605	$	(13,719)
Other Comprehensive (Loss) Income:
Change in Unrealized Gain (Loss) on Investment Securities Available-for-Sale	(733)		(653)		(2,662)		2,292
Income Tax Effect	158		137		571		(481)
Reclassification Adjustment for Gain on Sale of Debt Securities Included in Net Income (1)	—		—		(225)		(489)
Income Tax Effect (2)	—		—		48		103
Other Comprehensive (Loss) Income, Net of Income Tax Effect	(575)		(516)		(2,268)		1,425
Total Comprehensive Income (Loss)	$	1,408	$	(17,911)	$	2,337	$	(12,294)

(1)    Reported in Net Gain (Loss) on Securities on the Consolidated Statements of Income (Loss).

(2)    Reported in Income Tax Expense (Benefit) on the Consolidated Statements of Income (Loss).

The accompanying notes are an integral part of these consolidated financial statements

3

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

Three Months Ended September 30, 2021	Shares Issued	Common Stock		Capital Surplus		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income		Total Stockholders' Equity
(Dollars in thousands, except share and per share data)
June 30, 2021	5,680,993	$	2,367	$	82,969	$	51,146	$	(5,655)	$	1,709	$	132,536
Comprehensive Income:
Net Income	—	—		—		1,983		—		—		1,983
Other Comprehensive Loss	—	—		—		—		—		(575)		(575)
Stock-Based Compensation Expense	—	—		169		—		—		—		169
Exercise of Stock Options	—	—		(8)		—		62		—		54
Treasury stock purchased, at cost (81,676 shares)	—	—		—		—		(1,890)		—		(1,890)
Dividends Paid ($0.24 Per Share)	—	—		—		(1,290)		—		—		(1,290)
September 30, 2021	5,680,993	$	2,367	$	83,130	$	51,839	$	(7,483)	$	1,134	$	130,987

Three Months Ended September 30, 2020	Shares Issued	Common Stock		Capital Surplus		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income		Total Stockholders' Equity
(Dollars in thousands, except share and per share data)
June 30, 2020	5,680,993	$	2,367	$	83,327	$	68,039	$	(5,928)	$	4,587	$	152,392
Comprehensive Loss:
Net Loss	—	—		—		(17,395)		—		—		(17,395)
Other Comprehensive Loss	—	—		—		—		—		(516)		(516)
Restricted Stock Awards Granted	—	—		(103)		—		103		—		—
Stock-Based Compensation Expense	—	—		114		—		—		—		114
Dividends Paid ($0.24 Per Share)	—	—		—		(1,296)		—		—		(1,296)
September 30, 2020	5,680,993	$	2,367	$	83,338	$	49,348	$	(5,825)	$	4,071	$	133,299

The accompanying notes are an integral part of these consolidated financial statements

4

Nine Months Ended September 30, 2021	Shares Issued	Common Stock		Capital Surplus		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income		Total Stockholders' Equity
(Dollars in thousands, except share and per share data)
December 31, 2020	5,680,993	$	2,367	$	82,723	$	51,132	$	(5,094)	$	3,402	$	134,530
Comprehensive Income:
Net Income	—	—		—		4,605		—		—		4,605
Other Comprehensive Loss	—	—		—		—		—		(2,268)		(2,268)
Stock-Based Compensation Expense	—	—		415		—		—		—		415
Exercise of Stock Options	—	—		(8)		—		62		—		54
Treasury stock purchased, at cost (106,973 shares)	—	—		—		—		(2,451)		—		(2,451)
Dividends Paid ($0.72 Per Share)	—	—		—		(3,898)		—		—		(3,898)
September 30, 2021	5,680,993	$	2,367	$	83,130	$	51,839	$	(7,483)	$	1,134	$	130,987

Nine Months Ended September 30, 2020	Shares Issued	Common Stock		Capital Surplus		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income		Total Stockholders' Equity
(Dollars in thousands, except share and per share data)
December 31, 2019	5,680,993	$	2,367	$	82,971	$	66,955	$	(3,842)	$	2,646	$	151,097
Comprehensive Loss:
Net Loss	—	—		—		(13,719)		—		—		(13,719)
Other Comprehensive Income	—	—		—		—		—		1,425		1,425
Restricted Stock Awards Forfeited	—	—		96		—		(96)		—		—
Restricted Stock Awards Granted	—	—		(103)		—		103		—		—
Stock-Based Compensation Expense	—	—		370		—		—		—		370
Exercise of Stock Options	—	—		4		—		(82)		—		(78)
Treasury Stock Purchased, at cost (67,816 shares)	—	—		—		—		(1,908)		—		(1,908)
Dividends Paid ($0.72 Per Share)	—	—		—		(3,888)		—		—		(3,888)
September 30, 2020	5,680,993	$	2,367	$	83,338	$	49,348	$	(5,825)	$	4,071	$	133,299

The accompanying notes are an integral part of these consolidated financial statements

5

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30,	2021		2020
(Dollars in thousands)
OPERATING ACTIVITIES
Net Income (Loss)	$	4,605	$	(13,719)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By Operating Activities
Amortization (Accretion) on Securities	38		(9)
Depreciation and Amortization	1,810		2,578
(Recovery) Provision for Loan Losses	(1,200)		4,000
Intangible Asset Impairment	1,178		—
Goodwill Impairment	—		18,693
Writedown on Fixed Assets	2,270		884
Lease Impairment	227		—
Gain on Securities	(482)		(20)
Gain on Purchased Tax Credits	(53)		(46)
Income from Bank-Owned Life Insurance	(411)		(417)
Proceeds From Mortgage Loans Sold	8,182		24,317
Originations of Mortgage Loans for Sale	(15,289)		(23,314)
Gain on Sale of Loans	(166)		(1,003)
(Gain) Loss on Sale of Other Real Estate Owned and Repossessed Assets	(76)		26
Noncash Expense for Stock-Based Compensation	415		370
Decrease (Increase) in Accrued Interest Receivable	517		(944)
Net Loss on Disposal of Fixed Assets	3		48
Increase (Decrease) in Taxes Payable	295		(253)
Payments on Operating Leases	(251)		(412)
Decrease in Accrued Interest Payable	(277)		(252)
Refund of Federal and State Income Taxes	1,311		—
Other, Net	(68)		(1,329)
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,578		9,198
INVESTING ACTIVITIES
Investment Securities Available for Sale:
Proceeds From Principal Repayments and Maturities	29,563		91,219
Purchases of Securities	(119,924)		(68,851)
Proceeds from Sale of Securities	11,967		17,893
Net Decrease (Increase) in Loans	33,378		(100,436)
Purchase of Premises and Equipment	(2,275)		(184)
Proceeds from Disposal of Premises and Equipment	—		26
Proceeds From Sale of Other Real Estate Owned	285		99
Decrease (Increase) in Restricted Equity Securities	533		(305)
NET CASH USED IN INVESTING ACTIVITIES	(46,473)		(60,539)
FINANCING ACTIVITIES
Net Increase in Deposits	52,542		80,677
Net Increase in Short-Term Borrowings	12,260		11,490
Principal Payments on Other Borrowed Funds	(2,000)		(3,000)
Cash Dividends Paid	(3,898)		(3,888)
Treasury Stock, Purchases at Cost	(2,451)		(1,908)
Exercise of Stock Options	54		(78)
NET CASH PROVIDED BY FINANCING ACTIVITIES	56,507		83,293
INCREASE IN CASH AND CASH EQUIVALENTS	12,612		31,952
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	160,911		80,217
CASH AND DUE FROM BANKS AT END OF PERIOD	$	173,523	$	112,169

The accompanying notes are an integral part of these consolidated financial statements

6

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30, 2021	2021		2020
(Dollars in thousands)
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash Paid For:
Interest on Deposits and Borrowings (Including Interest Credited to Deposits of $2,761 and $4,382, Respectively)	$	2,951	$	4,694
Income Taxes	1,524		1,785
SUPPLEMENTAL NONCASH DISCLOSURE:
Transfer of Loans to Loans Held for Sale	10,056		—
Transfer of Premises and Equipment to Premises and Equipment Held for Sale and Other Assets	1,075		—
Transfer of Deposits to Deposits Held for Sale	102,647		—
Other Real Estate Acquired in Settlement of Loans	37		115
Right of Use Asset Recognized	—		329
Lease Liability Recognized	—		329

The accompanying notes are an integral part of these consolidated financial statements

7

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of CB Financial Services, Inc. (“CB Financial”) and its wholly owned subsidiary, Community Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, Exchange Underwriters, Inc. (“Exchange Underwriters”). CB Financial, the Bank and Exchange Underwriters are collectively referred to as the “Company”. All intercompany transactions and balances have been eliminated in consolidation.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with general practice within the banking industry. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading in any material respect. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and income and expenses for the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, other-than-temporary impairment evaluations of securities, goodwill and intangible assets impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented. All these adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year.

The Company evaluated subsequent events through the date the consolidated financial statements were filed with the SEC and incorporated into the consolidated financial statements the effect of all material known events determined by Accounting Standards Codification ("ASC") 855, Subsequent Events, to be recognizable events.

Nature of Operations

The Company derives substantially all its income from banking and bank-related services which include interest earnings on commercial, commercial mortgage, residential real estate and consumer loan financing, as well as interest earnings on investment securities and fees generated from deposit services to its customers. The Company provides banking services through its subsidiary, Community Bank, a Pennsylvania-chartered commercial bank. The Bank operates 11 branches in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania, and five branches in Marshall, Ohio, Upshur and Wetzel Counties in West Virginia. The Bank is a community-oriented institution offering residential and commercial real estate loans, commercial and industrial loans, and consumer loans as well as a variety of deposit products for individuals and businesses in its market area. Property and casualty, commercial liability, surety and other insurance products are offered through Exchange Underwriters, a full-service, independent insurance agency.

Reclassifications

Certain comparative amounts for the prior year have been reclassified to conform to the current year presentation. Such reclassifications did not affect net income or stockholders’ equity.

Assets and Liabilities Held for Sale

Assets and liabilities (disposal groups) are classified as held for sale when their carrying amounts will be recovered principally through sale when all of the following criteria are met:

•management, having the authority to approve the action, commits to a plan to sell the disposal group;

•the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups;

•an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated;

8

•the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year;

•the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

•actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Assets and liabilities held for sale are measured at the lower of carrying amount and fair value, less estimated costs to sell, and are presented separately on the Consolidated Statements of Financial Condition. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any estimated costs to sell, each reporting period it remains classified as held for sale and reports any subsequent losses as an adjustment to the carrying value of the disposal group. Assets classified as held for sale are no longer depreciated or amortized.

Loans held for sale may consist of residential real estate loans originated and intended for sale in the secondary market. These loans are generally sold with loan servicing rights retained. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential real estate loans held for sale are included in noninterest income.

Impairment of Long-Lived Assets

The Company routinely performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable and are in excess of their fair value, less estimated costs to sell. If estimated recoverable amounts are lower than carrying values, assets are considered impaired and reduced to their recoverable amounts with the recognized impairment charges recorded in noninterest expense in the Consolidated Statements of (Loss) Income.

Long-lived assets are tested for impairment individually or as part of an asset group. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company follows ASC 360, Property, Plant and Equipment, which requires three steps to identify, recognize and measure the impairment of a long-lived asset (asset group) to be held and used:

Step 1 – Consider whether Indicators of Impairment are Present.

The following are examples of such events or changes in circumstances.

•A significant decrease in the market price of a long-lived asset (asset group).

•A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition.

•A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator.

•An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group).

•A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group).

•A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent.

Step 2—Test for Recoverability

If indicators of impairment are present, the Company performs a recoverability test comparing the sum of the estimated undiscounted cash flows attributable to the long-lived asset or asset group in question to the carrying amount of the long-lived asset or asset group.

Step 3—Measurement of an Impairment Loss

If the undiscounted cash flows used in the recoverability test are less than the carrying amount of the long-lived asset (asset group), the Company estimates the fair value of the long-lived asset or asset group and recognizes an impairment loss when the carrying amount of the long-lived asset or asset group exceeds the estimated fair value.

An impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group must not reduce the carrying amount of

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that asset below its fair value whenever the fair value is determinable without undue cost and effort. ASC 360 prohibits the subsequent reversal of an impairment loss for an asset held and used.

Recent Accounting Standards

In August 2021, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update ("ASU") 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The SEC rule changes update and expand the statistical disclosures that bank and savings and loan registrants provide to investors, in light of changes in this sector over the past 30 years. The rules also eliminate certain disclosure items that are duplicative of other SEC rules and requirements of U.S. GAAP. The rules replace Industry Guide 3, Statistical Disclosure by Bank Holding Companies, with updated disclosure requirements in a new subpart of Regulation S-K. The rules are intended to help ensure that investors have access to more meaningful, relevant information to facilitate their investment and voting decisions. The amendments are effective prospectively for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect the adoption of this ASU will have a material impact on the Company's consolidated statements of financial condition or results of operation.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. The elective guidance in the ASU applies to modifications of contract terms that will directly replace, or have the potential to replace, an affected rate with another interest rate index, as well as certain contemporaneous modifications of other contract terms related to the replacement of an affected rate. The ASU notes that changes in contract terms that are made to effect the reference rate reform transition are considered related to the replacement of a reference rate if they are not the result of a business decision that is separate from or in addition to changes to the terms of a contract to effect that transition. The optional expedient allows companies to account for the modification as if it was not substantial (i.e., do not treat as an extinguishment of debt). The ASU is intended to help stakeholders during the global market-wide reference rate transition period. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. While the LIBOR reform may require extensive changes to the contracts that govern LIBOR based products, as well as our systems and processes, we cannot yet determine whether the Company will be able to use the optional expedient for the changes to contract terms that may be required by LIBOR reform and therefore, the Company cannot yet determine the magnitude of the impact or the overall impact of the new guidance on the Company’s consolidated financial condition or results of operation.

In December 2019, FASB issued ASU 2019-12, Income taxes (Topic 740); Simplifying the Accounting for Income Taxes. ASU 2019-12 provides amendments intended to reduce the cost and complexity in accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements. ASU 2019-12 removes the following exceptions from ASC 740, Income Taxes: (i) exceptions to the incremental approach for intraperiod tax allocation; (ii) exceptions to accounting for basis differences when a foreign subsidiary becomes an equity method investment or a foreign equity method investment become a subsidiary; and (iii) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 provides the following amendments that simplify and improve guidance with Topic 740: (i) franchise taxes that are based partially on income; (ii) transactions that result in a step up in the tax basis of goodwill; (iii) separate financial statements of legal entities that are not subject to tax; (iv) enacted changes in tax laws in interim periods; and (v) employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this ASU did not have a material impact on the Company's consolidated statements of financial condition or results of operation.

In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, ASU 2016-13 eliminates the probable initial recognition threshold in current GAAP; and instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however this ASU requires that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects companies holding financial assets and net investment in leases that are not accounted for at fair value through net income. The ASU 2016-13 amendments affect loans, debt securities, trade receivables, net investments in

10

leases, off balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 was originally effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Company, resulting in a required implementation date for the Company of January 1, 2023. Early adoption will continue to be permitted. The Company is evaluating the impact of this ASU and expects to recognize a one-time adjustment to the allowance for loan losses upon adoption, but we cannot yet determine the magnitude of the one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial condition or results of operation.

Note 2. Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale

Branch Optimization and Operational Efficiency Initiatives

As previously disclosed by the Company on February 23, 2021, May 27, 2021 and June 10, 2021, the Company announced the implementation of branch optimization and operational efficiency strategic initiatives to improve the Bank’s financial performance and operations in order to position the Bank for continued profitable growth. The Bank intends to optimize its current branch network while expanding technology and infrastructure investments in its remaining locations. The decision was the result of a comprehensive internal study that measured branch performance by comparing financial and non-financial indicators to growth opportunities, while evolving changes in consumer preferences, largely driven by the global pandemic, led to an acceleration of branch optimization efforts. 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.

The Bank continues to make progress related to these initiatives through the consolidation of six branches that was completed on June 30, 2021, reducing the Bank's branch network to 16 branches. The Bank is also in the process of implementing operational efficiencies related to individualized processes within its branch network and operating environment. In addition, on June 10, 2021, CB Financial, Community Bank, and Citizens Bank of West Virginia, Inc. (“Citizens Bank”) executed a Purchase and Assumption Agreement (the “Agreement”) pursuant to which Citizens Bank has agreed to purchase certain loans and other assets, and assume certain deposits and other liabilities, of the branch offices of Community Bank located in Buckhannon, West Virginia, and in New Martinsville, West Virginia. The Agreement provides for a 5.0% premium to be paid on assumed deposits, which will be recognized as income upon the expected close of the transaction in the fourth quarter of 2021, subject to regulatory approval and other closing conditions. As of September 30, 2021, all requisite regulatory approvals had been received.

As a result of the events and changes in circumstances associated with the branch optimization initiatives whereby six branches were consolidated and two others are to be divested, the Company performed assessments of the recoverability of long-lived assets to determine whether their carrying values may not be recoverable. Utilizing guidance in ASC 360, the Company performed the three step process to identify, recognize and measure the impairment of the long-lived assets.

•For the six locations that were consolidated:

◦Three locations were written down to the fair value of the land based on the appraised value due to plans to raze the buildings.

◦Two locations are being marketed for sale and were written down to fair value based on appraised value.

◦One location is leased. Refer to Note 11 for further discussion of the impairment of the right of use asset associated with the operating lease.

•For the two branches to be divested, fair value of the premises and equipment was determined based on the contractual terms of the Agreement, which provide that the premises and equipment will be purchased at the Company's net book value, net of a $338,000 contractual discount at the acquisition date.

In total, the Company recognized $2,000 and $2.3 million in charges on the premises and equipment for the three and nine months ended September 30, 2021, respectively, as Writedown on Fixed Assets in the Consolidated Statements of (Loss) Income.

The branch optimization and operational efficiency initiatives resulted in $1.3 million and $6.3 million of restructuring-related and other expenses for the three and nine months ended September 30, 2021, respectively. The expenses include the aforementioned $2.3 million writedown on fixed assets, a $1.2 million impairment of intangible assets associated with the branch sales (refer to Note 14 for further information) for the nine months ended September 30, 2021, as well as $1.3 million and $2.9 million of expenses related to contracted services, employee severance costs, branch lease impairment (refer to Note 11 for further information), professional fees, data processing fees, legal and other expenses for the three and nine months ended September 30, 2021, respectively.

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Assets and Liabilities of Branches Held for Sale

At September 30, 2021, the Company reclassified the deposits to be assumed to deposits held for sale, loans to be purchased to loans held for sale and premises and equipment to be purchased to premises and equipment held for sale on the Consolidated Statements of Financial Condition.

The assets and liabilities classified as held for sale of the disposal group related to the branch sales are as follows at September 30, 2021.

	September 30, 2021
(Dollars in thousands)
Loans Held for Sale
Real Estate:
Residential	$	2,290
Commercial	2,911
Commercial and Industrial	592
Consumer	252
Other	453
Total Loans Held for Sale	$	6,498
Premises and Equipment Held for Sale	795
Deposits Held for Sale
Non-Interest Bearing Demand Deposits	$	15,070
Interest Bearing Demand Deposits	31,502
Money Market Accounts	17,578
Savings Accounts	20,803
Time Deposits	17,694
Total Deposits Held for Sale	$	102,647

Note 3. Earnings (Loss) Per Share

There are no convertible securities which would affect the numerator in calculating basic and diluted earnings (loss) per share; therefore, net income (loss) as presented on the Consolidated Statements of Income (Loss) is used as the numerator.

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands, except share and per share data)
Net Income (Loss)	$	1,983	$	(17,395)	$	4,605	$	(13,719)
Weighted-Average Basic Common Shares Outstanding	5,373,032		5,395,342		5,412,989		5,406,710
Dilutive Effect of Common Stock Equivalents (Stock Options and Restricted Stock)	17,096		—		7,803		—
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding	5,390,128		5,395,342		5,420,792		5,406,710
Earnings (Loss) Per Share:
Basic	$	0.37	$	(3.22)	$	0.85	$	(2.54)
Diluted	0.37		(3.22)		0.85		(2.54)

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The dilutive effect on weighted average diluted common shares outstanding is the result of outstanding stock options and nonvested restricted stock. The following table presents for the periods indicated (a) options to purchase shares of common stock that were outstanding but not included in the computation of earnings per share because the options’ exercise price was greater than the average market price of the common shares for the period, and (b) shares of restricted stock awards that were not included in the computation of diluted earnings per share because the hypothetical repurchase of shares under the treasury stock method exceeded the weighted average nonvested restricted awards, therefore the effects would be anti-dilutive.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Stock Options	71,741	220,271	199,641	220,271
Restricted Stock	23,000	49,130	32,360	49,130

When there is a net loss for the period, the exercise or conversion of any potential shares increases the number of shares in the denominator and results in a lower loss per share. In that situation, the potential shares are antidilutive and not included in the Company's loss per share calculation. Therefore, if there is a net loss, diluted loss per share is the same as basic loss per share.

Note 4. Securities

The following table presents the amortized cost and fair value of securities available-for-sale at the dates indicated:

	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-Sale Debt Securities:
U.S. Government Agencies	$	50,992	$	—	$	(1,054)	$	49,938
Obligations of States and Political Subdivisions	18,356		1,064		—		19,420
Mortgage-Backed Securities - Government-Sponsored Enterprises	140,255		2,205		(770)		141,690
Corporate Debt	7,482		—		(1)		7,481
Total Available-for-Sale Debt Securities	217,085		3,269		(1,825)		218,529
Equity Securities:
Mutual Funds							999
Other							1,823
Total Equity Securities							2,822
Total Securities							$	221,351

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	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-Sale Debt Securities:
U.S. Government Agencies	$	41,994	$	12	$	(595)	$	41,411
Obligations of States and Political Subdivisions	20,672		1,321		—		21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises	75,900		3,593		—		79,493
Total Available-for-Sale Debt Securities	138,566		4,926		(595)		142,897
Equity Securities:
Mutual Funds							1,019
Other							1,484
Total Equity Securities							2,503
Total Securities							$	145,400

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at the dates indicated:

	September 30, 2021
	Less than 12 months					12 Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
(Dollars in thousands)
U.S. Government Agencies	7	$	25,759	$	(239)	5	$	24,179	$	(815)	12	$	49,938	$	(1,054)
Mortgage Backed Securities- Government Sponsored Enterprises	10	64,133		(770)		—	—		—		10	64,133		(770)
Corporate Debt	1	4,950		(1)		—	—		—		1	4,950		(1)
Total	18	$	94,842	$	(1,010)	5	$	24,179	$	(815)	23	$	119,021	$	(1,825)

	December 31, 2020
	Less than 12 months					12 Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
(Dollars in thousands)
U.S. Government Agencies	7	$	32,399	$	(595)	—	$	—	$	—	7	$	32,399	$	(595)
Total	7	$	32,399	$	(595)	—	$	—	$	—	7	$	32,399	$	(595)

For debt securities, the Company does not believe that any individual unrealized loss as of September 30, 2021 or December 31, 2020, represents an other-than-temporary impairment. The Company performs a review of the entire securities portfolio on a quarterly basis to identify securities that may indicate an other-than-temporary impairment. The Company’s management considers the length of time and the extent to which the fair value has been less than cost, and the financial condition of the issuer. The securities that are temporarily impaired at September 30, 2021 and December 31, 2020 relate principally to changes in market interest rates subsequent to the acquisition of the specific securities. The Company does not intend to sell, and it is not more likely than not that it will be required to sell any of the securities in an unrealized loss position before recovery of its amortized cost or maturity of the security.

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Securities available-for-sale with a fair value of $184.4 million and $119.7 million at September 30, 2021 and December 31, 2020, respectively, are pledged to secure public deposits, short-term borrowings and for other purposes as required or permitted by law.

The following table presents the scheduled maturities of debt securities as of the date indicated:

	September 30, 2021
	Amortized Cost		Fair Value
(Dollars in thousands)
Due in One Year or Less	$	2,583	$	2,620
Due after One Year through Five Years	4,394		4,404
Due after Five Years through Ten Years	70,946		71,437
Due after Ten Years	139,162		140,068
Total	$	217,085	$	218,529

The following table presents the gross realized gain and loss on sales of debt securities, as well as gain and loss on equity securities from both sales and market adjustments for the periods indicated. All gains and losses presented in the table below are reported in net gain on securities on the Consolidated Statements of Income (Loss).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Debt Securities
Gross Realized Gain	$	—	$	—	$	225	$	489
Gross Realized Loss	—		—		—		—
Net Gain on Debt Securities	$	—	$	—	$	225	$	489
Equity Securities
Net Unrealized Gain (Loss) Recognized on Securities Held	$	18	$	(59)	$	251	$	(469)
Net Realized Gain Recognized on Securities Sold	6		—		6		—
Net Gain (Loss) on Equity Securities	$	24	$	(59)	$	257	$	(469)
Net Gain (Loss) on Securities	$	24	$	(59)	$	482	$	20

Note 5. Loans and Allowance for Loan Losses

The Company’s loan portfolio is segmented to enable management to monitor risk and performance. Real estate loans are further segregated into three classes. Residential mortgages include those secured by residential properties and include home equity loans,. Commercial mortgages consist of loans to commercial borrowers secured by commercial real estate. Construction loans typically consist of loans to build commercial buildings and acquire and develop residential real estate. The commercial and industrial segment consists of loans to finance the activities of commercial customers. The consumer segment consists primarily of indirect auto loans as well as personal installment loans and personal or overdraft lines of credit.

Residential mortgage loans are typically longer-term loans and, therefore, generally present greater interest rate risk than the consumer and commercial loans. Under certain economic conditions, housing values may decline, which may increase the risk that the collateral values are not sufficient.

Commercial real estate loans generally present a higher level of credit risk than loans secured by residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income-producing properties, and the increased difficulty in evaluating and monitoring these types of loans. Furthermore, the repayment of commercial real estate loans is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.

15

Construction loans are originated to individuals to finance the construction of residential dwellings and are also originated for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses. Construction loans generally provide for the payment of interest only during the construction phase, which is usually 12 to 18 months. At the end of the construction phase, the loan generally converts to a permanent residential or commercial mortgage loan. Construction loan risks include overfunding in comparison to the plans, untimely completion of work, and leasing and stabilization after project completion.

Commercial and industrial loans are generally secured by business assets, inventories, accounts receivable, etc., which present collateral risk.

Consumer loans generally have higher interest rates and shorter terms than residential mortgage loans; however, they have additional credit risk due to the type of collateral securing the loan.

The following table presents the classifications of loans as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Percent		Amount		Percent
(Dollars in thousands)
Real Estate:
Residential	$	317,373	31.7	%	$	344,142	32.9	%
Commercial	379,621		37.9		373,555		35.9
Construction	78,075		7.8		72,600		6.9
Commercial and Industrial	102,360		10.2		126,813		12.1
Consumer	112,087		11.2		113,854		10.9
Other	12,083		1.2		13,789		1.3
Total Loans	1,001,599		100.0	%	1,044,753		100.0	%
Allowance for Loan Losses	(11,581)				(12,771)
Loans, Net	$	990,018			$	1,031,982

The Small Business Administration reopened the Payroll Protection Program ("PPP") the week of January 11, 2021 accepting applications for both First Draw and Second Draw PPP Loans. As of September 30, 2021, as part of this round of PPP, the Bank funded 218 PPP loans totaling $34.6 million with net deferred origination fees of $1.3 million.

PPP loans decreased $22.4 million to $32.7 million at September 30, 2021 compared to $55.1 million at December 31, 2020. At September 30, 2021, the largest sectors of PPP loans were $9.3 million for construction and specialty-trade contractors, $5.9 million in loans for health care and social assistance, $4.7 million for professional and technical services, $2.5 million for manufacturing, $3.5 million for restaurant and food services, and $1.8 million for wholesale trade.

Net unamortized PPP loan origination fees as of September 30, 2021 and December 31, 2020 were $1.0 million and $1.1 million, respectively. Net PPP loan origination fees earned were $380,000 and $1.4 million for the three and nine months ended September 30, 2021, respectively. All PPP loans are classified as commercial and industrial loans held for investment. No allowance for loan loss was allocated to the PPP loan portfolio due to the Bank complying with the lender obligations that ensure SBA guarantee.

Total unamortized net deferred loan fees were $2.1 million and $2.0 million at September 30, 2021 and December 31, 2020, respectively.

The following table presents classification of loans held for sale as of September 30, 2021. Loans held for sale includes $6.5 million related to the Agreement executed with Citizens Bank and $7.4 million of residential real estate loans originated and intended for sale in the secondary market. In addition, a $3.6 million nonaccrual and substandard-rated commercial real estate loan secured by a hotel that was transferred into the held for sale portfolio at September 30, 2021 was sold in October 2021 and

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will result in the recognition of an $897,000 gain on sale of loans in the fourth quarter of 2021. This loan previously incurred a $931,000 charge-off in the prior year. There were no loans held for sale at December 31, 2020.

	September 30 2021
(Dollars in thousands)
Real Estate:
Residential	$	9,640
Commercial	6,470
Construction	—
Commercial and Industrial	592
Consumer	252
Other	453
Total Loans Held for Sale	$	17,407

The Company uses an eight-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are not considered criticized and are aggregated as “pass” rated. The criticized rating categories used by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are below average quality, resulting in an undue credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans classified as doubtful have all the weaknesses inherent in loans classified as substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as loss are considered uncollectable and of such little value that continuance as an asset is not warranted.

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At September 30, 2021 and December 31, 2020, there were no loans in the criticized category of Loss within the internal risk rating system.

	September 30, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
(Dollars in Thousands)
Real Estate:
Residential	$	314,266	$	869	$	2,238	$	—	$	317,373
Commercial	339,193		28,018		12,410		—		379,621
Construction	66,649		10,785		641		—		78,075
Commercial and Industrial	87,901		12,410		1,513		536		102,360
Consumer	112,017		—		70		—		112,087
Other	12,012		71		—		—		12,083
Total Loans	$	932,038	$	52,153	$	16,872	$	536	$	1,001,599

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	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
(Dollars in Thousands)
Real Estate:
Residential	$	340,573	$	1,115	$	2,454	$	—	$	344,142
Commercial	320,358		37,482		15,715		—		373,555
Construction	68,343		53		4,204		—		72,600
Commercial and Industrial	113,797		7,787		4,620		609		126,813
Consumer	113,805		—		49		—		113,854
Other	13,711		78		—		—		13,789
Total Loans	$	970,587	$	46,515	$	27,042	$	609	$	1,044,753

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	September 30, 2021
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
(Dollars in Thousands)
Real Estate:
Residential	$	315,124	$	613	$	—	$	—	$	613	$	1,636	$	317,373
Commercial	374,315		—		—		—		—		5,306		379,621
Construction	78,075		—		—		—		—		—		78,075
Commercial and Industrial	100,817		—		—		—		—		1,543		102,360
Consumer	111,515		484		18		—		502		70		112,087
Other	12,083		—		—		—		—		—		12,083
Total Loans	$	991,929	$	1,097	$	18	$	—	$	1,115	$	8,555	$	1,001,599

	December 31, 2020
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
(Dollars in Thousands)
Real Estate:
Residential	$	339,067	$	2,919	$	315	$	—	$	3,234	$	1,841	$	344,142
Commercial	365,712		1		740		—		741		7,102		373,555
Construction	72,600		—		—		—		—		—		72,600
Commercial and Industrial	124,916		—		—		—		—		1,897		126,813
Consumer	112,952		784		61		8		853		49		113,854
Other	13,789		—		—		—		—		—		13,789
Total Loans	$	1,029,036	$	3,704	$	1,116	$	8	$	4,828	$	10,889	$	1,044,753

The decrease in nonaccrual loans at September 30, 2021 compared to December 31, 2020 is primarily related to a $3.6 million commercial real estate loan secured by a hotel that was transferred to loans held-for-sale as previously noted, partially offset by a $2.0 million commercial real estate loan secured by a hotel that was moved to nonaccrual status in the current period.

Additional interest income that would have been recorded if the loans that were nonaccrual at September 30, 2021 were current was $33,000 and $136,000 for the three and nine months ended September 30, 2021, respectively, and $20,000 and $59,000 for the three and nine months ended September 30, 2020, respectively.

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The following table sets forth the amounts and categories of nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section. Nonperforming loans do not include loans modified under Section 4013 of the CARES Act and interagency guidance as further explained below.

	September 30, 2021			December 31, 2020
(Dollars in Thousands)
Nonaccrual Loans:
Real Estate:
Residential	$	1,636		$	1,841
Commercial	5,306			7,102
Construction	—			—
Commercial and Industrial	1,543			1,897
Consumer	70			49
Total Nonaccrual Loans	8,555			10,889
Accruing Loans Past Due 90 Days or More:
Consumer	—			8
Total Accruing Loans Past Due 90 Days or More	—			8
Total Nonaccrual Loans and Accruing Loans Past Due 90 Days or More	8,555			10,897
Troubled Debt Restructurings, Accruing:
Real Estate
Residential	622			650
Commercial	1,713			2,861
Commercial and Industrial	17			80
Total Troubled Debt Restructurings, Accruing	2,352			3,591
Total Nonperforming Loans	10,907			14,488
Other Real Estate Owned:
Residential	36			—
Commercial	—			208
Total Other Real Estate Owned	36			208
Total Nonperforming Assets	$	10,943		$	14,696
Nonperforming Loans to Total Loans	1.09		%	1.39		%
Nonperforming Assets to Total Assets	0.74			1.04

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to applicable requirements of the local jurisdiction was $775,000 and $806,000 at September 30, 2021 and December 31, 2020, respectively.

TDRs typically are the result of loss mitigation activities whereby concessions are granted to minimize loss and avoid foreclosure or repossession of collateral. For a loan modification to be considered a TDR, the borrower must be experiencing financial difficulty and a concession must be granted, except for an insignificant delay in payment. Section 4013 of the CARES Act and regulatory guidance promulgated by federal banking regulators provide temporary relief from accounting and financial reporting requirements for TDRs regarding certain short-term loan modifications related to COVID-19. Specifically, the CARES Act provides that the Bank may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and suspend any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. Any modification involving a loan that was not more than 30 days past due as of December 31, 2019 and that occurs beginning on March 1, 2020 and ends on the earlier of January 1, 2022 (as extended by the Consolidated Appropriations Act, 2021) or the date that is 60 days after the termination date of the national emergency related to

19

the COVID-19 outbreak qualify for this exception, including a forbearance arrangement, interest rate modification, repayment plan or any other similar arrangement that defers or delays the payment of principal or interest.

Bank regulatory agencies released an interagency statement that offers practical expedients for modifications that occur in response to the COVID-19 pandemic, but it differs with the CARES Act in certain areas. The expedients require a lender to conclude that a borrower is not experiencing financial difficulty if either short-term (e.g., six months or less) modifications are made, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented or the modification or deferral program is mandated by the federal government or a state government. The bank regulatory agencies have subsequently confirmed that their guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act. Both Section 4013 of the CARES Act and the interagency statement can be applied to a second modification that occurs after the first modification provided that the second modification does not qualify as a TDR under Section 4013 of the CARES Act or the interagency statement.

The Bank offered forbearance options for borrowers impacted by COVID-19 that provide a short-term delay in payment by primarily allowing: (a) deferral of three to six months of payments; or (b) for consumer loans not secured by a real estate mortgage, three months of interest-only payments that also extends the maturity date of the loan by three months. During the forbearance period, the borrower is not considered delinquent for credit bureau reporting purposes. The Company has elected the practical expedients related to TDRs that are available in the CARES Act and interagency guidance as an entity-wide accounting policy and does not consider any of the forbearance agreements TDRs, delinquent, or nonaccrual.

The following table provides details of loans in forbearance as of the dates indicated.

	September 30, 2021					December 31, 2020
	Number of Loans	Amount		% of Portfolio		Number of Loans	Amount		% of Portfolio
(Dollars in thousands)
Real Estate:
Residential	—	$	—	—	%	4	$	749	0.2	%
Commercial	—	—		—	%	8	19,818		5.3	%
Construction	—	—		—	%	1	1,958		2.7	%
Commercial and Industrial	—	—		—	%	5	1,219		1.0	%
Consumer	—	—		—	%	13	356		0.3	%
Total Loans in Forbearance	—	$	—	—	%	31	$	24,100	2.3	%

The concessions granted for the TDRs in the portfolio primarily consist of, but are not limited to, modification of payment or other terms, temporary rate modification and extension of maturity date. Loans classified as TDRs consisted of 14 loans totaling $2.9 million at September 30, 2021 and 17 loans totaling $4.2 million at December 31, 2020, respectively.

The following table presents information at the time of modification related to loans modified in a TDR during the periods indicated. During the three and nine months ended September 30, 2021, there were no loans that were modified that were considered a TDR.

	Three Months Ended September 30, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
(Dollars in thousands)
Real Estate:
Commercial	1	$	504	$	519	$	—
Commercial and Industrial	1	38		38		—
Total	2	$	542	557		$	—

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	Nine Months Ended September 30, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
(Dollars in thousands)
Real Estate:
Residential	1	$	234	$	234	$	—
Commercial	1	504		519		—
Commercial and Industrial	1	38		38		—
Total	3	$	776	$	791	$	—

During the three months ended September 30, 2021, no loans that were previously modified in a TDR paid off in full. During the nine months ended September 30, 2021, one residential real estate loan totaling $3,000, one commercial real estate loan totaling $698,000 and one commercial and industrial loan totaling $8,000 previously modified in a TDR paid off in full. During the three months ended September 30, 2020, no loans previously modified in a TDR paid off in full. During the nine months ended September 30, 2020, one residential real estate loan totaling $60,000 previously modified in a TDR paid off in full

No TDRs subsequently defaulted during the three and nine months ended September 30, 2021 and 2020, respectively.

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	September 30, 2021
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential	$	1,146	$	—	$	1,150	$	1,165	$	35
Commercial	13,100		—		13,315		13,361		235
Construction	641		—		641		641		16
Commercial and Industrial	2,066		—		2,351		2,922		24
Total With No Related Allowance Recorded	$	16,953	$	—	$	17,457	$	18,089	$	310
With A Related Allowance Recorded:
Real Estate:
Residential	$	—	$	—	$	—	$	—	$	—
Commercial	272		199		272		473		16
Construction	—		—		—		—		—
Commercial and Industrial	—		—		—		—		—
Total With A Related Allowance Recorded	$	272	$	199	$	272	$	473	$	16
Total Impaired Loans:
Real Estate:
Residential	$	1,146	$	—	$	1,150	$	1,165	$	35
Commercial	13,372		199		13,587		13,834		251
Construction	641		—		641		641		16
Commercial and Industrial	2,066		—		2,351		2,922		24
Total Impaired Loans	$	17,225	$	199	$	17,729	$	18,562	$	326

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	December 31, 2020
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential	$	1,183	$	—	$	1,187	$	1,194	$	46
Commercial	31,865		—		32,887		37,443		1,418
Construction	4,204		—		4,204		4,013		159
Commercial and Industrial	3,296		—		3,506		3,426		89
Total With No Related Allowance Recorded	$	40,548	$	—	$	41,784	$	46,076	$	1,712
With A Related Allowance Recorded:
Real Estate:
Residential	$	—	$	—	$	—	$	—	$	—
Commercial	1,524		293		1,524		1,585		72
Construction	—		—		—		—		—
Commercial and Industrial	2,069		356		2,069		2,114		57
Total With A Related Allowance Recorded	$	3,593	$	649	$	3,593	$	3,699	$	129
Total Impaired Loans
Real Estate:
Residential	$	1,183	$	—	$	1,187	$	1,194	$	46
Commercial	33,389		293		34,411		39,028		1,490
Construction	4,204		—		4,204		4,013		159
Commercial and Industrial	5,365		356		5,575		5,540		146
Total Impaired Loans	$	44,141	$	649	$	45,377	$	49,775	$	1,841

The recorded investment of loans evaluated for impairment decreased $26.9 million at September 30, 2021 compared to December 31, 2020 and was primarily related to commercial real estate loans. This is primarily the result of no longer evaluating separately for impairment certain commercial real estate loans secured by hotels that have manageable loan-to-value ratios and have exhibited an ability to cash flow during the COVID-19 pandemic, with the expectation that hotel operations strengthen further as occupancy rates increase due to the economy reopening and resumption of travel. In addition, as previously noted, a $3.6 million commercial real estate loan was transferred into loans held for sale and was no longer evaluated for impairment at September 30, 2021. The loan was subsequently sold in October 2021.

The following tables present the activity in the allowance for loan losses summarized by primary segments and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment at the dates and for the periods indicated.

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
June 30, 2021	$	1,588	$	5,582	$	1,136	$	1,152	$	941	$	—	$	1,145	$	11,544
Charge-offs	—		—		—		—		(19)		—		—		(19)
Recoveries	2		—		—		11		43		—		—		56
Provision (Recovery)	(98)		347		(71)		(21)		(12)		—		(145)		—
September 30, 2021	$	1,492	$	5,929	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,581

22

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
December 31, 2020	$	2,249	$	6,010	$	889	$	1,423	$	1,283	$	—	$	917	$	12,771
Charge-offs	—		—		—		—		(139)		—		—		(139)
Recoveries	15		—		—		33		101		—		—		149
Provision (Recovery)	(772)		(81)		176		(314)		(292)		—		83		(1,200)
September 30, 2021	$	1,492	$	5,929	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,581

	September 30, 2021
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	199	$	—	$	—	$	—	$	—	$	—	$	199
Collectively Evaluated for Potential Impairment	$	1,492	$	5,730	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,382

	December 31, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	293	$	—	$	356	$	—	$	—	$	—	$	649
Collectively Evaluated for Potential Impairment	$	2,249	$	5,717	$	889	$	1,067	$	1,283	$	—	$	917	$	12,122

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
June 30, 2020	$	2,688	$	5,160	$	820	$	1,566	$	1,714	$	—	$	700	$	12,648
Charge-offs	(11)		—		—		—		(103)		—		—		(114)
Recoveries	1		1		—		6		38		—		—		46
Provision (Recovery)	(506)		1,711		71		170		(290)		—		44		1,200
September 30, 2020	$	2,172	$	6,872	$	891	$	1,742	$	1,359	$	—	$	744	$	13,780

23

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
December 31, 2019	$	2,023	$	3,210	$	285	$	2,412	$	1,417	$	—	$	520	$	9,867
Charge-offs	(36)		—		—		—		(239)		—		—		(275)
Recoveries	5		28		—		21		134		—		—		188
Provision (Recovery)	180		3,634		606		(691)		47		—		224		4,000
September 30, 2020	$	2,172	$	6,872	$	891	$	1,742	$	1,359	$	—	$	744	$	13,780

	September 30, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	2,248	$	—	$	607	$	—	$	—	$	—	$	2,855
Collectively Evaluated for Potential Impairment	$	2,172	$	4,624	$	891	$	1,135	$	1,359	$	—	$	744	$	10,925

The allowance for loan losses was $11.6 million at September 30, 2021 compared to $12.8 million at December 31, 2020. There was a net recovery of $1.2 million of provision for loan losses for the nine months ended September 30, 2021. A $20.8 million decrease in net reservable loans in the current year, which excludes PPP loans and includes the reclassification of $17.4 million of loans to held for sale that do not require a reserve, as well as a decrease in specifically impaired loans and improving economic and industry conditions, contributed to the net recovery in the current period.

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated. At September 30, 2021 and December 31, 2020, commercial and industrial loans include $32.7 million and $55.1 million, respectively, of PPP loans collectively evaluated for potential impairment. No allowance for loan loss was allocated to the PPP loan portfolio due to the Bank complying with the lender obligations that ensure SBA guarantee.

	September 30, 2021
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	1,146	$	13,372	$	641	$	2,066	$	—	$	—	$	17,225
Collectively Evaluated for Potential Impairment	316,227		366,249		77,434		100,294		112,087		12,083		984,374
Total Loans	$	317,373	$	379,621	$	78,075	$	102,360	$	112,087	$	12,083	$	1,001,599

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	December 31, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	1,183	$	33,389	$	4,204	$	5,365	$	—	$	—	$	44,141
Collectively Evaluated for Potential Impairment	342,959		340,166		68,396		121,448		113,854		13,789		1,000,612
Total Loans	$	344,142	$	373,555	$	72,600	$	126,813	$	113,854	$	13,789	$	1,044,753

The following table presents changes in the accretable discount on the loans acquired at fair value at the dates indicated.

	Accretable Discount
(Dollars in Thousands)
December 31, 2020	$	1,194
Accretable Yield	(385)
September 30, 2021	$	809

Note 6. Time Deposits

The following table shows the maturities of time deposits for the next five years and beyond at the date indicated.

September 30, 2021	Time Deposits		Time Deposits Held for Sale		Time Deposits, Net
(Dollars in thousands)
One Year or Less	$	68,228	$	8,560	$	59,668
Over One Through Two Years	58,693		4,346		54,347
Over Two Through Three Years	10,758		1,034		9,724
Over Three Through Four Years	11,362		2,415		8,947
Over Four Through Five Years	9,645		1,143		8,502
Over Five Years	3,735		196		3,539
Total	$	162,421	$	17,694	$	144,727

The balance in time deposits, including time deposits held for sale, that meet or exceed the FDIC insurance limit of $250,000 totaled $49.1 million and $59.2 million as of September 30, 2021 and December 31, 2020, respectively.

The aggregate amount of demand deposits, including demand deposits held for sale, that are overdrawn and have been reclassified as loans was $176,000 and $231,000 as of September 30, 2021 and December 31, 2020, respectively.

Note 7. Short-Term Borrowings

Borrowings with original maturities of one year or less are classified as short-term and may consist of borrowings with the Federal Home Loan Bank ("FHLB"), securities sold under agreements to repurchase or borrowings on revolving lines of credit with the Federal Reserve Bank or other correspondent banks. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are overnight sweep accounts with next-day maturities utilized by commercial customers to earn interest on their funds. Securities are pledged as collateral under these agreements in an amount at least equal to the outstanding balance and the collateral pledging requirements are monitored on a daily basis. $10.7 million of securities sold under agreements to repurchase are reported as deposits held for sale at September 30, 2021 because the associated deposits will be sold as part of the Agreement with Citizens Bank. See Note 2 for further information.

25

The following table sets forth the components of short-term borrowings as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(Dollars in thousands)
Securities Sold Under Agreements to Repurchase:
Balance at Period End	$	42,623	0.16	%	$	41,055	0.21	%
Average Balance Outstanding During the Period	43,745		0.22		37,819		0.36
Maximum Amount Outstanding at any Month End	52,777				46,123
Securities Collaterizing the Agreements at Period-End:
Carrying Value	56,351				46,312
Market Value	56,412				47,283

Note 8. Other Borrowed Funds

Other borrowed funds consist of fixed rate advances from the FHLB. The following table sets forth the scheduled maturities of other borrowed funds at the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(Dollars in thousands)
Due in One Year	$	3,000	2.23	%	$	2,000	2.12	%
Due After One Year to Two Years	3,000		2.41		3,000		2.23
Due After Two Years to Three Years	—		—		3,000		2.41
Total	$	6,000	2.32	%	$	8,000	2.27	%

As of September 30, 2021, the Bank maintained a credit arrangement with a maximum borrowing limit of approximately $420.4 million with the FHLB and available borrowing capacity of $351.3 million. This arrangement is subject to annual renewal, incurs no service charge, and is secured by a blanket security agreement on $564.1 million of residential and commercial mortgage loans and the Bank’s investment in FHLB stock. Under this arrangement, the Bank had available a variable rate Line of Credit in the amount of $150.0 million as of September 30, 2021, of which there was no outstanding balance.

As an alternative to pledging securities, the FHLB periodically provides standby letters of credit on behalf of the Bank to secure certain public deposits in excess of the level insured by the FDIC. If the FHLB is required to make payment for a beneficiary’s draw, the payment amount is converted into a collateralized advance to the Bank. Standby letters of credit issued on our behalf by the FHLB to secure public deposits were $60.6 million and $90.3 million as of September 30, 2021 and December 31, 2020, respectively.

At September 30, 2021, the Bank maintained a Borrower-In-Custody of Collateral line of credit agreement with the Federal Reserve Bank (“FRB”) for $82.8 million that requires monthly certification of collateral, is subject to annual renewal, incurs no service charge and is secured by $124.9 million of commercial and industrial and consumer indirect auto loans. In addition, the Bank also maintains multiple line of credit arrangements with various unaffiliated banks totaling $50.0 million of which no draws had been taken.

At September 30, 2021 and December 31, 2020, CB Financial did not maintain any credit facilities.

Note 9. Fair Value Disclosure

FASB ASC 820 “Fair Value Measurement” defines fair value and provides the framework for measuring fair value and required disclosures about fair value measurements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the transaction date. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in valuation methods to determine fair value.

26

The three levels of fair value hierarchy are as follows:

Level 1 –    Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.

Level 2 –    Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets, and other observable inputs.

Level 3 –    Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in Level 3 classification include option pricing models, discounted cash flows, and other similar techniques.

This hierarchy requires the use of observable market data when available. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statements of Financial Condition as of the dates indicated, by level within the fair value hierarchy. The majority of the Company’s securities are included in Level 2 of the fair value hierarchy. Fair values for Level 2 securities were primarily determined by a third-party pricing service using both quoted prices for similar assets, when available, and model-based valuation techniques that derive fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. The standard inputs that are normally used include benchmark yields of like securities, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. There were no transfers into or out of Level 3 during the nine months ended September 30, 2021 or year ended December 31, 2020.

	Fair Value Hierarchy	September 30 2021		December 31 2020
(Dollars in thousands)
Securities:
Available-for-Sale Debt Securities
U.S. Government Agencies	Level 2	$	49,938	$	41,411
Obligations of States and Political Subdivisions	Level 2	19,420		21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises	Level 2	141,690		79,493
Corporate Debt	Level 2	7,481		—
Total Available-for-Sale Debt Securities		218,529		142,897
Equity Securities
Mutual Funds	Level 1	999		1,019
Other	Level 1	1,823		1,484
Total Equity Securities		2,822		2,503
Total Securities		$	221,351	$	145,400

27

The following table presents the financial assets on the Consolidated Statements of Financial Condition measured at fair value on a nonrecurring basis as of the dates indicated by level within the fair value hierarchy for only those nonrecurring assets that had a fair value below the carrying amount. The table also presents the significant unobservable inputs used in the fair value measurements.

Financial Asset	Fair Value Hierarchy	September 30, 2021		Valuation Techniques	Significant Unobservable Inputs	Range					Weighted Average
(Dollars in thousands)
Impaired Loans Individually Assessed	Level 3	$	73	Appraisal of Collateral (1)	Appraisal Adjustments (2)	0	%	to	50	%	50.0%
Mortgage Servicing Rights	Level 3	733		Discounted Cash Flow	Discount Rate	9	%	to	11	%	10.1%
					Prepayment Speed	10	%	to	29	%	19.9%

Financial Asset	Fair Value Hierarchy	December 31, 2020		Valuation Techniques	Significant Unobservable Inputs	Range					Weighted Average
(Dollars in thousands)
Impaired Loans Individually Assessed	Level 3	$	2,944	Appraisal of Collateral (1)	Appraisal Adjustments (2)	0	%	to	50	%	—
Mortgage Servicing Rights	Level 3	656		Discounted Cash Flow	Discount Rate	9	%	to	11	%	10.0%
					Prepayment Speed	12	%	to	27	%	18.7%
OREO	Level 3	34		Appraisal of Collateral (1)	Liquidation Expenses (2)	10	%	to	30	%	—

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include various Level 3 inputs, which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal.

Impaired loans are evaluated when a loan is identified as impaired and valued at the lower of cost or fair value at that time. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Fair value is measured based on the value of the collateral securing these loans and is classified as Level 3 in the fair value hierarchy. At September 30, 2021 and December 31, 2020, the fair value of impaired loans consists of the loan balances of $272,000 and $3.6 million, respectively, less their specific valuation allowances of $199,000 and $649,000, respectively.

The fair value of mortgage servicing rights ("MSRs") is determined by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs. MSRs are considered impaired if the carrying value exceeds fair value. Since the valuation model includes significant unobservable inputs as listed above, MSRs are classified as Level 3. MSRs are reported in Other Assets in the Consolidated Statements of Financial Condition and are amortized into mortgage servicing income in Other Income in the Consolidated Statements of (Loss) Income.

OREO properties are evaluated at the time of acquisition and recorded at fair value, less estimated selling costs. After acquisition, OREO is recorded at the lower of cost or fair value, less estimated selling costs. The fair value of an OREO property is determined from a qualified independent appraisal and is classified as Level 3 in the fair value hierarchy.

Financial instruments are defined as cash, evidence of an ownership in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses and other factors, as determined through various option pricing formulas or simulation modeling. As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated fair values are based may have significant impact on the resulting estimated fair values.

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As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company.

The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.

		September 30, 2021				December 31, 2020
	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
(Dollars in thousands)
Financial Assets:
Cash and Due From Banks:
Interest Bearing	Level 1	$	131,835	$	131,835	$	145,636	$	145,636
Non-Interest Bearing	Level 1	41,688		41,688		15,275		15,275
Securities	See Above	221,351		221,351		145,400		145,400
Loans Held for Sale	Level 2	17,407		18,304		—		—
Loans, Net	Level 3	990,018		1,022,160		1,031,982		1,073,633
Property and Equipment Held for Sale	Level 2	795		795		—		—
Restricted Stock	Level 2	3,451		3,451		3,984		3,984
Mortgage Servicing Rights	Level 3	733		733		656		656
Accrued Interest Receivable	Level 2	3,355		3,355		3,872		3,872
Financial Liabilities:
Deposits Held for Sale	Level 2	102,647		107,779		—		—
Deposits	Level 2	1,185,156		1,186,603		1,224,569		1,231,606
Short-Term Borrowings	Level 2	42,623		42,623		41,055		41,055
Other Borrowed Funds	Level 2	6,000		6,058		8,000		8,067
Accrued Interest Payable	Level 2	490		490		767		767

Note 10. Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business primarily to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and performance letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and performance letters of credit written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Commitments and conditional obligations are evaluated the same as on-balance-sheet instruments but do not have a corresponding reserve recorded. The Company’s opinion on not implementing a corresponding reserve for off-balance-sheet instruments is supported by historical factors of no losses recorded due to these items. The Company is continually evaluating these items for credit quality and any future need for the corresponding reserve.

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The following table presents the unused and available credit balances of financial instruments whose contracts represent credit risk at the dates indicated.

	September 30, 2021		December 31, 2020
(Dollars in thousands)
Standby Letters of Credit	$	110	$	120
Performance Letters of Credit	2,764		2,947
Construction Mortgages	56,809		60,312
Personal Lines of Credit	7,132		6,930
Overdraft Protection Lines	5,895		6,287
Home Equity Lines of Credit	22,797		22,110
Commercial Lines of Credit	74,127		69,738
Total Commitments	$	169,634	$	168,444

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Performance letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance-related contracts. The coverage period for these instruments is typically a one-year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the letter. For secured letters of credit, the collateral is typically Company deposit instruments or customer business assets.

Note 11. Leases

The Company evaluates contracts at commencement to determine if a lease is present. The Company’s lease contracts are all classified as operating leases and create operating right-of-use (“ROU”) assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. The leases are primarily ROU assets of land and building for branch and loan production locations. ROU assets are reported in Accrued Interest Receivable and Other Assets and the related lease liabilities in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition.

The following tables present the lease expense, ROU assets, weighted average term, discount rate and maturity analysis of lease liabilities for operating leases for the periods and dates indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Operating Lease Expense	$	74	$	118	$	257	$	353
Short-Term Lease Expense	8		—		25		—
Variable Lease Expense	8		10		24		28
Total Lease Expense	$	90	$	128	$	306	$	381

	September 30, 2021			December 31, 2020
(Dollars in thousands)
Operating Leases:
ROU Assets	$	741		$	1,206
Weighted Average Lease Term in Years	7.16			6.95
Weighted Average Discount Rate	2.47		%	2.39		%

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	September 30, 2021
(Dollars in thousands)
Maturity Analysis:
Due in One Year	$	309
Due After One Year to Two Years	178
Due After Two Years to Three Years	113
Due After Three Years to Four Years	90
Due After Four to Five Years	45
Due After Five Years	330
Total	$	1,065
Less: Present Value Discount	106
Lease Liabilities	$	959

Impairment of ROU Assets

ROU assets from operating leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, and are reviewed for impairment when indicators of impairment are present. ASC 360 requires three steps to identify, recognize and measure impairment. If indicators of impairment are present (Step 1), the Company performs a recoverability test (Step 2) comparing the sum of the estimated undiscounted cash flows attributable to the ROU asset in question to the carrying amount. If the undiscounted cash flows used in the recoverability test are less than the carrying amount, the Company estimates the fair value of the ROU asset and recognizes an impairment loss when the carrying amount exceeds the estimated fair value (Step 3).

At June 30, 2021, the Company consolidated six branches as part of its branch optimization initiative. One of the branches was leased and the Company performed the three-step evaluation as outlined above to determine whether the operating lease was impaired. As part of the recoverability test, the Company elected to exclude operating lease liabilities from the carrying amount of the asset group. The undiscounted future cash flows used in the recoverability test were based on assumptions made by the Company rather than market participant assumptions. Since an election was made to exclude operating lease liabilities from the asset or asset group, all future cash lease payments for the lease were also excluded. In addition, the Company elected to exclude operating lease liabilities from the estimated fair value, consistent with the recoverability test When determining the fair value of the ROU asset, the Company estimated what market participants would pay to lease the asset. The ROU asset was valued assuming its highest and best use in its current form.

Based on the analysis, the Company concluded that the ROU asset for this branch was fully impaired as of June 30, 2021, resulting in a remaining ROU carrying value of zero and the recognition of a $227,000 impairment for the nine months ended September 30, 2021. The impairment was recognized in Occupancy expense on the Consolidated Statements of Income (Loss).

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Note 12. Other Noninterest Expense

The details of other noninterest expense for the Company’s Consolidated Statements of (Loss) Income for the periods indicated are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Non-Employee Compensation	$	184	$	155	$	473	$	449
Printing and Supplies	55		125		218		365
Postage	86		61		265		176
Telephone	145		108		472		408
Charitable Contributions	45		32		80		98
Dues and Subscriptions	33		36		121		153
Loan Expenses	86		149		288		420
Meals and Entertainment	31		—		91		74
Travel	27		13		77		87
Training	5		10		29		24
Bank Assessment	46		44		134		132
Insurance	54		59		173		173
Miscellaneous	106		127		409		418
Total Other Noninterest Expense	$	903	$	919	$	2,830	$	2,977

Note 13. Segment and Related Information

At September 30, 2021, the Company’s business activities were comprised of two operating segments, which are community banking and insurance brokerage services. CB Financial is the parent company of the Bank and Exchange Underwriters, a wholly owned subsidiary of the Bank. Exchange Underwriters has an independent board of directors from the Company and is managed separately from the banking and related financial services that the Company offers. Exchange Underwriters is an independent insurance agency that offers property, casualty, commercial liability, surety and other insurance products.

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The following is a table of selected financial data for the Company’s subsidiaries and consolidated results at the dates and for the periods indicated.

	Community Bank		Exchange Underwriters, Inc.		CB Financial Services, Inc.		Net Eliminations		Consolidated
(Dollars in thousands)
September 30, 2021
Assets	$	1,474,626	$	4,656	$	130,994	$	(135,458)	$	1,474,818
Liabilities	1,352,005		1,672		7		(9,853)		1,343,831
Stockholders' Equity	122,621		2,984		130,987		(125,605)		130,987
December 31, 2020
Assets	$	1,416,132	$	5,379	$	134,546	$	(139,337)	$	1,416,720
Liabilities	1,287,148		2,325		16		(7,299)		1,282,190
Stockholders' Equity	128,984		3,054		134,530		(132,038)		134,530
Three Months Ended September 30, 2021
Interest and Dividend Income	$	10,768	$	1	$	1,311	$	(1,294)	$	10,786
Interest Expense	776		—		—		—		776
Net Interest and Dividend Income	9,992		1		1,311		(1,294)		10,010
Provision for Loan Losses	—		—		—		—		—
Net Interest and Dividend Income After Provision for Loan Losses	9,992		1		1,311		(1,294)		10,010
Noninterest Income	975		1,195		28		—		2,198
Noninterest Expense	8,750		1,020		3		—		9,773
Undistributed Net Income of Subsidiary	124		—		654		(778)		—
Income Before Income Tax Expense	2,341		176		1,990		(2,072)		2,435
Income Tax Expense	393		52		7		—		452
Net Income	$	1,948	$	124	$	1,983	$	(2,072)	$	1,983
Nine Months Ended September 30, 2021
Interest and Dividend Income	$	32,536	$	4	$	8,456	$	(8,402)	$	32,594
Interest Expense	2,673		—		—		—		2,673
Net Interest and Dividend Income	29,863		4		8,456		(8,402)		29,921
(Recovery) Provision for Loan Losses	(1,200)		—		—		—		(1,200)
Net Interest and Dividend Income After (Recovery) Provision for Loan Losses	31,063		4		8,456		(8,402)		31,121
Noninterest Income	3,319		3,995		277		—		7,591
Noninterest Expense	29,898		2,983		9		—		32,890
Undistributed Net Income (Loss) of Subsidiary	710		—		(4,096)		3,386		—
Income Before Income Tax Expense	5,194		1,016		4,628		(5,016)		5,822
Income Tax Expense	888		306		23		—		1,217
Net Income	$	4,306	$	710	$	4,605	$	(5,016)	$	4,605

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	Community Bank		Exchange Underwriters, Inc.		CB Financial Services, Inc.		Net Eliminations		Consolidated
(Dollars in thousands)
Three Months Ended September 30, 2020
Interest and Dividend Income	$	11,639	$	1	$	1,310	$	(1,294)	$	11,656
Interest Expense	1,240		—		—		—		1,240
Net Interest and Dividend Income	10,399		1		1,310		(1,294)		10,416
Provision for Loan Losses	1,200		—		—		—		1,200
Net Interest and Dividend Income After Provision for Loan Losses	9,199		1		1,310		(1,294)		9,216
Noninterest Income	1,208		1,024		(59)		—		2,173
Noninterest Expense	28,046		919		3		—		28,968
Undistributed Net Income (Loss) of Subsidiary	73		—		(18,694)		18,621		—
(Loss) Income Before Income Tax (Benefit) Expense	(17,566)		106		(17,446)		17,327		(17,579)
Income Tax (Benefit) Expense	(166)		33		(51)		—		(184)
Net (Loss) Income	$	(17,400)	$	73	$	(17,395)	$	17,327	$	(17,395)
Nine Months Ended September 30, 2020
Interest and Dividend Income	$	35,664	$	3	$	2,634	$	(2,589)	$	35,712
Interest Expense	4,442		—		—		—		4,442
Net Interest and Dividend Income	31,222		3		2,634		(2,589)		31,270
Provision for Loan Losses	4,000		—		—		—		4,000
Net Interest and Dividend Income After Provision for Loan Losses	27,222		3		2,634		(2,589)		27,270
Noninterest Income (Loss)	3,760		3,426		(493)		—		6,693
Noninterest Expense	44,227		2,806		9		—		47,042
Undistributed Net Income (Loss) of Subsidiary	433		—		(15,991)		15,558		—
(Loss) Income Before Income Tax Expense (Benefit)	(12,812)		623		(13,859)		12,969		(13,079)
Income Tax Expense (Benefit)	590		190		(140)		—		640
Net (Loss) Income	$	(13,402)	$	433	$	(13,719)	$	12,969	$	(13,719)

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Note 14. Intangible Assets

The following table presents a summary of intangible assets subject to amortization at the dates indicated.

	September 30, 2021								December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
(Dollars in thousands)
Core Deposit Intangible	$	14,103	$	(8,386)	$	(1,178)	$	4,539	$	14,103	$	(7,047)	$	7,056
Customer List	1,800		(599)		—		1,201		1,800		(457)		1,343
Total Intangible Assets	$	15,903	$	(8,985)	$	(1,178)	$	5,740	$	15,903	$	(7,504)	$	8,399

On June 10, 2021, the Agreement was executed with Citizens Bank pursuant to which Citizens Bank has agreed to assume certain deposits of the branch offices of Community Bank located in Buckhannon, West Virginia, and in New Martinsville, West Virginia. In 2018, the Company recorded a core deposit intangible asset related to the acquisition of these two branches as part of the merger with First West Virginia Bancorp, Inc. As a result of signing the Agreement and the expected sale of a portion of the deposits associated with the remaining core deposit intangible, the Company performed an interim evaluation to determine whether the core deposit intangible was impaired. As a result of the evaluation, the Company determined the carrying amount of the core deposit intangible was impaired $1.2 million. The Company recorded the impairment in Intangible Asset and Goodwill Impairment on the Consolidated Statements of Income (Loss).

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in subsequent fiscal years is as follows as of September 30, 2021.

	Amount
(Dollars in thousands)
Remaining in 2021	$	445
2022	1,782
2023	1,782
2024	1,147
2025	189
2026 and Thereafter	395
Total Estimated Intangible Asset Amortization Expense	$	5,740

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Note 15. Mortgage Servicing Rights

The following table presents MSR activity and net carrying values for the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Mortgage Servicing Rights:
Balance, Beginning of Period	$	902	$	1,032	$	1,029	$	1,001
Additions	32		73		64		210
Amortization	(70)		(71)		(229)		(177)
Balance, End of Period	$	864	$	1,034	$	864	$	1,034
Valuation Allowance:
Balance, Beginning of Period	$	(213)	$	(340)	$	(373)	$	(71)
Valuation Allowance Adjustment	82		—		242		(269)
Balance, End of Period	$	(131)	$	(340)	$	(131)	$	(340)
Mortgage Servicing Rights, Net Carrying Value	$	733	$	694	$	733	$	694

Amortization of MSRs and the period change in the valuation allowance are reported in Other Income on the Consolidated Statements of Income (Loss).

Real estate loans serviced for others, which are not included in the Consolidated Statements of Financial Condition, totaled $96.6 million and $105.8 million at September 30, 2021 and December 31, 2020, respectively.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This discussion should be read in conjunction with the unaudited consolidated financial statements, notes and tables included in this report. For further information, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Forward-Looking Statements

This report contains certain “forward-looking statements” within the meaning of the federal securities laws. These statements are not historical facts, but rather statements based on the Company’s current expectations regarding its business strategies, intended results and future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions. Management’s ability to predict results or the effect of future plans or strategies is inherently uncertain. Factors which could affect actual results include, but are not limited to, the following:

•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;

•Government action in response to the COVID-19 pandemic and its effects on the Company's business and that of the Company's customers;

•Our ability to realize the expected cost savings and other efficiencies related to our branch optimization and operational efficiency initiatives;

•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 integrate the operations of businesses we acquire;

•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

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•Other factors disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission.

Many of these risks and uncertainties have been elevated by and may continue to be elevated by the COVID-19 pandemic. The ability to predict the impact of the ongoing COVID-19 pandemic on the Company’s future operating results with any precision is difficult and depends on many factors beyond our control.

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.

General

CB Financial Services is a bank holding company established in 2006 and headquartered in Carmichaels, Pennsylvania. CB Financial’s business activity is conducted primarily through its wholly owned bank subsidiary, Community Bank.

The Bank is a Pennsylvania-chartered commercial bank headquartered in Carmichaels, Pennsylvania. The Bank operates from 11 branches in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania and five branches in Marshall, Ohio, Upshur and Wetzel Counties in West Virginia. The Bank also has a loan production office in Allegheny County, a corporate center in Washington County and an operations center in Greene County in Pennsylvania. The Bank is a community-oriented institution offering residential and commercial real estate loans, commercial and industrial loans, and consumer loans as well as a variety of deposit products for individuals and businesses in its market area. Property and casualty, commercial liability, surety and other insurance products are offered through Exchange Underwriters, Inc., the Bank’s wholly owned subsidiary that is a full-service, independent insurance agency located in Washington County.

Overview

The following discussion and analysis is presented to assist in the understanding and evaluation of our consolidated financial condition and results of operations. It is intended to complement the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Form 10-Q and should be read in conjunction therewith. The detailed discussion focuses on our consolidated financial condition as of September 30, 2021, compared to the financial condition as of December 31, 2020 and the consolidated results of operations for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020.

Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. Our results of operations also are affected by our provisions for loan losses, noninterest income and noninterest expense. Noninterest income consists primarily of fees and service charges on deposit accounts, insurance commissions, income from bank-owned life insurance and other income. Noninterest expense consists primarily of expenses related to salaries and employee benefits, occupancy and equipment, data processing, contracted services, legal and professional fees, advertising, deposit and general insurance and other expenses.

Financial institutions like us, in general, are significantly affected by economic conditions, competition, and the monetary and fiscal policies of the federal government. Lending activities are influenced by the demand for and supply of housing, competition among lenders, interest rate conditions, and funds availability. Our operations and lending are principally concentrated in southwestern Pennsylvania and Ohio Valley market areas.

Branch Optimization and Operational Efficiency Update

As previously disclosed by the Company on February 23, 2021, May 27, 2021 and June 10, 2021, the Company announced the implementation of branch optimization and operational efficiency strategic initiatives to improve the Bank’s financial performance and operations in order to position the Bank for continued profitable growth. The Bank intends to optimize its current branch network while expanding technology and infrastructure investments in its remaining locations. The decision was the result of a comprehensive internal study that measured branch performance by comparing financial and non-financial indicators to growth opportunities, while evolving changes in consumer preferences, largely driven by the global pandemic, led to an acceleration of branch optimization efforts. 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.

The Bank continues to make progress related to these initiatives through the consolidation of six branches that was completed on June 30, 2021, reducing the Bank's branch network to 16 branches. The Bank is also in the process of implementing operational efficiencies related to over 185 individualized processes within its branch network and operating environment. In addition, on June 10, 2021, CB Financial, Community Bank, and Citizens Bank of West Virginia, Inc. (“Citizens Bank”) executed a Purchase and Assumption Agreement (the “Agreement”) pursuant to which Citizens Bank has agreed to purchase certain loans and other assets, and assume certain deposits and other liabilities, of the branch offices of Community Bank located in Buckhannon, West

37

Virginia, and in New Martinsville, West Virginia. The Agreement provides for a 5.0% premium to be paid on assumed deposits, which will be recognized as income upon the expected close of the transaction in the fourth quarter of 2021, subject to regulatory approval and other closing conditions. As of September 30, 2021, all requisite regulatory approvals had been received.

The Company presently expects to incur $7.9 million of non-recurring expenses in 2021 and, as of September 30, 2021, has incurred $6.3 million of expenses related to these items. The expenses include a $2.3 million writedown on fixed assets and a $1.2 million impairment of intangible assets associated with the branch consolidations in the second quarter and the pending branch sales expected to be finalized in the fourth quarter. In addition, as part of the Company's branch optimization and operational efficiency initiatives, the Company incurred $2.9 million of expenses related to contracted services, employee severance costs, branch lease impairment, professional fees, data processing fees, legal and other expenses.

The majority of the remaining expenses to be recognized in 2021 are related to approximately $600,000 in contracted services aimed at improving the operational and revenue efficiency at the bank in the long-term. The Company anticipates cost savings from this initiative ranging from approximately $2.5 million to $3.5 million in 2022, as well as expected enhanced revenue and fee generating capacity in future years.

In addition, the Company expects an annual reduction in pre-tax operating expenses in 2021 of approximately $1.0 million, along with $3.0 million of ongoing pre-tax cost savings as a result of the branch optimization initiatives. The Company expects these estimated cost savings to be incremental to net income beginning in 2022. These estimated cost savings exclude the favorable impact of the expected premium from sale of branches expected to be recognized in the fourth quarter of 2021 and currently estimated to be $5.1 million.

Explanation of Use of Non-GAAP Financial Measures

In addition to financial measures presented in accordance with U.S. GAAP, we present 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. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. 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.

The 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 21.0%. 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.

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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						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
(Dollars in thousands)
Interest Income (GAAP)	$	10,786		$	11,656		$	32,594		$	35,712
Adjustment to FTE Basis	41			53			131			165
Interest Income (FTE) (Non-GAAP)	10,827			11,709			32,725			35,877
Interest Expense (GAAP)	776			1,240			2,673			4,442
Net Interest Income (FTE) (Non-GAAP)	$	10,051		$	10,469		$	30,052		$	31,435
Net Interest Rate Spread (GAAP)	2.77		%	3.03		%	2.80		%	3.15		%
Adjustment to FTE Basis	0.01			0.02			0.01			0.02
Net Interest Rate Spread (FTE) (Non-GAAP)	2.78			3.05			2.81			3.17
Net Interest Margin (GAAP)	2.88		%	3.19		%	2.92		%	3.34		%
Adjustment to FTE Basis	0.01			0.02			0.01			0.01
Net Interest Margin (FTE) (Non-GAAP)	2.89			3.21			2.93			3.35

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.

	September 30, 2021			December 31, 2020
(Dollars in thousands)
Allowance for Loan Losses (Numerator)	$	11,581		$	12,771
Total Loans	1,001,599			$	1,044,753
PPP Loans	(32,703)			(55,096)
Total Loans, Excluding PPP Loans (Non-GAAP) (Denominator)	$	968,896		$	989,657
Allowance for Loan Losses to Total Loans (GAAP)	1.16		%	1.22		%
Allowance for Loan Losses to Total Loans, Excluding PPP Loans (Non-GAAP)	1.20		%	1.29		%

Tangible book value per common share is a non-GAAP measure calculated based on tangible common equity divided by period-end common shares outstanding. We believe this non-GAAP measure serves as a useful tool 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.

	September 30, 2021		December 31, 2020
(Dollars in thousands, except share and per share data)
Stockholders' Equity (GAAP)	$	130,987	$	134,530
Goodwill and Other Intangible Assets, Net	(15,472)		(18,131)
Tangible Common Equity or Tangible Book Value (Non-GAAP) (Numerator)	$	115,515	$	116,399
Common Shares Outstanding (Denominator)	5,330,401		5,434,374
Book Value per Common Share (GAAP)	$	24.57	$	24.76
Tangible Book Value per Common Share (Non-GAAP)	$	21.67	$	21.42

39

Consolidated Statements of Financial Condition Analysis

Assets. Total assets increased $58.1 million, or 4.1%, to $1.47 billion at September 30, 2021, compared to $1.42 billion at December 31, 2020. The change is primarily due to increases in cash and due from banks and in securities.

Cash and Securities

•Cash and due from banks increased $12.6 million, or 7.8%, to $173.5 million at September 30, 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 increased $76.0 million, or 52.3%, to $221.4 million at September 30, 2021, compared to $145.4 million at December 31, 2020. Current period activity included $119.9 million of purchases, $29.6 million of paydowns, and $12.0 million of sales, primarily of mortgage-backed securities, which resulted in the recognition of a $231,000 gain. The purchases were made to earn a higher yield on excess cash. The sales recognized gains on higher-interest securities with faster prepayment speeds. In addition, there was a $2.9 million decrease in the market value of the debt securities portfolio and a $251,000 gain in market value in the equity securities portfolio, which is primarily comprised of bank stocks.

Payroll Protection Program (“PPP”) Update

•PPP loans decreased $22.4 million to $32.7 million at September 30, 2021 compared to $55.1 million at December 31, 2020, which includes $34.6 million in originations in the current period offset by loan forgiveness.

•$1.1 million of net PPP loan origination fees were unearned at December 31, 2020. Due to activity in the current period, $1.0 million of net PPP loan origination fees were unearned at September 30, 2021. $1.4 million of net PPP loan origination fees were recognized for the nine months ended September 30, 2021, including $380,000 for the three months ended September 30, 2021 compared to $489,000 for the three months ended June 30, 2021.

Loans, Allowance for Loan Losses and Credit Quality

•Total loans held for investment decreased $43.2 million to $1.00 billion at September 30, 2021. This includes the impact of reclassifying $17.4 million of loans to held for sale. Excluding the net decline of $22.4 million in PPP loans in the current period and including $17.4 million of held for sale loans, loans declined $3.4 million. Compared to June 30, 2021, total loans, including loans held for sale and excluding PPP loans, increased $17.0 million, primarily from $23.1 million in commercial real estate loan growth. Average loans for the three months ended September 30, 2021 decreased $12.4 million compared to the three months ended June 30, 2021.

•The allowance for loan losses was $11.6 million at September 30, 2021 compared to $12.8 million at December 31, 2020. There was a net recovery of $1.2 million of provision for loan losses in the current year. A $20.8 million decrease in net reservable loans in the current period, which excludes PPP loans and includes the reclassification of $17.4 million of loans to held for sale that do not require a reserve, as well as a decrease in specifically impaired loans and improving economic and industry conditions contributed to the net recovery in the current period. As a result, the allowance for loan losses to total loans was 1.16% at September 30, 2021 compared to 1.22% at December 31, 2020. The allowance for loan losses to total loans, excluding PPP loans, was 1.20% at September 30, 2021 compared to 1.29% at December 31, 2020.

•Net recoveries for the three months ended September 30, 2021 were $37,000, or (0.01)% of average loans on an annualized basis. Net charge-offs for the three months ended September 30, 2020 were $68,000, or 0.03% of average loans on an annualized basis. Net recoveries for the nine months ended September 30, 2021 were $10,000, or 0.00% of average loans on an annualized basis. Net charge-offs for the nine months ended September 30, 2020 were $87,000, or 0.01% of average loans on an annualized basis. Net charge-offs were primarily driven by indirect automobile loans in the consumer loan category in the prior period.

•Nonperforming loans, which includes nonaccrual loans, accruing loans past due 90 days or more, and accruing loans that are considered troubled debt restructurings within the loans held for investment portfolio, were $10.9 million at September 30, 2021 compared to $14.5 million at December 31, 2020. Nonperforming loans to total loans ratio was 1.09% at September 30, 2021 compared to 1.39% at December 31, 2020. A $3.6 million nonaccrual commercial real estate loan under agreement to sell and transferred into the held for sale portfolio at September 30, 2021 was sold in October 2021 and will result in the recognition of an $897,000 gain on sale of loans in the fourth quarter of 2021. This loan previously incurred a $931,000 charge-off in the prior year.

•The Bank provided borrower support and relief through short-term loan forbearance options by primarily allowing: (a) deferral of three to six months of payments; or (b) for consumer loans not secured by a real estate mortgage, three

40

months of interest-only payments that also extends the maturity date of the loan by three months. In certain circumstances, a second three-month deferral period was granted.

The following table provides details of loans in forbearance at the dates indicated.

	September 30, 2021					June 30, 2021					December 31, 2020
	Number of Loans	Amount		% of Portfolio		Number of Loans	Amount		% of Portfolio		Number of Loans	Amount		% of Portfolio
(Dollars in thousands)
Real Estate:
Residential	—	—		—	%	—	—		—	%	4	749		0.2	%
Commercial	—	—		—	%	4	6,544		1.8	%	8	19,818		5.3	%
Construction	—	—		—	%	—	—		—	%	1	1,958		2.7	%
Commercial and Industrial	—	—		—	%	5	1,221		1.0	%	5	1,219		1.0	%
Consumer	—	—		—	%	—	—		—	%	13	356		0.3	%
Total Loans in Forbearance	—	$	—	—	%	9	$	7,765	0.8	%	31	$	24,100	2.3	%

Other

•Premises and equipment decreased $1.8 million to $18.5 million at September 30, 2021 compared to $20.3 million at December 31, 2020. The Company recognized a $2.3 million writedown on fixed assets related to the branch optimization initiative. In addition, $795,000 of premises and equipment was transferred to held for sale related to the signing of the Agreement with Citizens Bank and the impending sale of the two related branches. The Company also recognized $727,000 of depreciation expense and $280,000 was transferred to Other Assets due to a branch closure and marketing of the property for sale. This was offset by $2.3 million of purchases, primarily related to the operational efficiency initiative.

•Intangible Assets decreased $2.7 million to $5.7 million at September 30, 2021 compared to $8.4 million at December 31, 2020 primarily due to an impairment of $1.2 million and amortization expense of $1.5 million. As a result of signing the Agreement with Citizens Bank and the expected sale of a portion of the deposits associated with the remaining core deposit intangible asset, the Company performed an interim evaluation to determine whether the core deposit intangible was impaired. As a result of the evaluation, the Company determined the carrying amount of the core deposit intangible was impaired $1.2 million.

•Accrued Interest Receivable and Other Assets decreased $2.7 million, or 17.7% to $12.6 million at September 30, 2021, compared to $15.2 million at December 31, 2020 primarily related to the receipt of a $1.3 million federal income tax refund, decrease in prepaid expenses which are mainly paid in advance near the beginning of the year, decrease in restricted stock due to a decline in standby letters of credit usage with the FHLB, and decrease in accrued interest receivable due to customer's first repaying unpaid interest when their forbearance periods ended.

Liabilities. Total liabilities increased $61.6 million, or 4.8%, to $1.34 billion at September 30, 2021 compared to $1.28 billion at December 31, 2020.

Deposits

•Total deposits, including deposits held for sale, increased $63.2 million to $1.29 billion as of September 30, 2021 compared to $1.22 billion at December 31, 2020. Noninterest bearing demand deposits, NOW accounts and savings accounts increased $47.8 million, $15.6 million and $18.4 million, respectively, partially offset by a decrease of $27.6 million in time deposits. IRS and stimulus-related payments totaled $29.9 million in the first quarter and the impact of the PPP loans that were originated in the current year and the proceeds of which were initially deposited at the Bank was approximately $28.7 million. Annualized deposit growth rate was 6.9%. Average total deposits decreased $5.7 million, primarily in time deposits, for the three months ended September 30, 2021 compared to the three months ended June 30, 2021.

Borrowed Funds

•Short-term borrowings increased $1.6 million, or 3.9%, to $42.6 million at September 30, 2021, compared to $41.1 million at December 31, 2020. At September 30, 2021 and December 31, 2020, short-term borrowings were comprised entirely of securities sold under agreements to repurchase, which are related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing

41

securities from the Bank’s investment portfolio under an agreement to repurchase. $10.7 million was excluded from short-term borrowings at September 30, 2021 and reported as deposits held for sale.

•Other borrowed funds decreased $2.0 million to $6.0 million at September 30, 2021 due to a Federal Home Loan Bank borrowing that matured in the current period.

Stockholders’ Equity. Stockholders’ equity decreased $3.5 million, or 2.6%, to $131.0 million at September 30, 2021, compared to $134.5 million at December 31, 2020.

•Net income was $4.6 million for the nine months ended September 30, 2021.

•Accumulated other comprehensive income decreased $2.3 million primarily due to market interest rate conditions on the Company’s debt securities.

•The Company declared and paid $3.9 million in dividends to common stockholders in the current period.

•The Company repurchased $2.5 million of its common stock as part of its stock repurchase program.

•Book value per share (GAAP) was $24.57 at September 30, 2021 compared to $24.76 at December 31, 2020, a decrease of $0.19. Tangible book value per share (Non-GAAP) increased $0.25, or 1.2%, to $21.67 compared to $21.42 at December 31, 2020. Refer to Explanation of Use of Non-GAAP Financial Measures in this Report.

Consolidated Results of Operations for the Three Months Ended September 30, 2021 and 2020 

Overview. Net income was $2.0 million for the three months ended September 30, 2021, an increase of $19.4 million compared to a net loss of $17.4 million for the three months ended September 30, 2020. Prior year results were impacted by the following:

•The Company conducted a goodwill impairment analysis and, due to the macroeconomic impacts of the pandemic and the overall industry-wide decline in value of stocks and earnings expectations in the banking sector at that time, including the Company's stock, the Company determined its goodwill was no longer supported by its estimate of the Company’s fair value. Therefore, $18.7 million of goodwill was deemed impaired and written off. This non-cash expense was deemed non-core and had no impact on tangible equity, cash flows, liquidity or regulatory capital.

•The Company incurred a non-cash impairment of fixed assets of $884,000 as a result of the Monessen branch closure whereby the property was written down to fair value. The impairment charge primarily related to the write off of the unamortized purchase accounting adjustment associated with the branch, which was the former headquarters of FedFirst Financial Corporation acquired through merger in 2014.

Net Interest and Dividend Income. Net interest and dividend income decreased $406,000, or 3.9%, to $10.0 million for the three months ended September 30, 2021 compared to $10.4 million for the three months ended September 30, 2020. Net interest margin (FTE) (Non-GAAP) decreased 32 basis points (“bps”) to 2.89% for the three months ended September 30, 2021 compared to 3.21% the three months ended September 30, 2020. Net interest margin (GAAP) decreased to 2.88% for the three months ended September 30, 2021 compared to 3.19% for the three months ended September 30, 2020. While the Company has further controlled its deposit cost structure as deposit balances increased and benefited from nonrenewal or repricing of higher cost time deposits, the net interest margin has decreased primarily due to the low interest rate environment decreasing yields on loans and securities.

Interest and Dividend Income

•Interest and dividend income decreased $870,000, or 7.5%, to $10.8 million for the three months ended September 30, 2021 compared to $11.7 million the three months ended September 30, 2020.

◦Interest income on loans decreased $991,000, or 9.3%, to $9.7 million for the three months ended September 30, 2021 compared to $10.7 million for the three months ended September 30, 2020. The average balance of loans decreased $31.0 million and the average yield decreased 28 bps to 3.85% compared to the three months ended September 30, 2020.

◦Interest and fee income on PPP loans was $484,000 for the three months ended September 30, 2021 and contributed 4 bps to loan yield, compared to $454,000 for the three months ended September 30, 2020, which decreased loan yield 11 bps.

◦The impact of the accretion of the credit mark on acquired loan portfolios was $94,000 for the three months ended September 30, 2021 compared to $127,000 for the three months ended September 30, 2020, or 4 bps in the current period compared to 5 bps in the prior period.

◦Interest income on taxable investment securities increased $90,000, or 12.0%, to $843,000 for the three months ended September 30, 2021 compared to $753,000 for the three months ended September 30, 2020 driven by a $74.4 million increase in average investment securities balances and 73 bps decrease in average yield. The Federal

42

Reserve’s pandemic-driven decision to drop the benchmark interest rate in March 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, increased $39,000, or 40.6% to $135,000 for the three months ended September 30, 2021 compared to $96,000 for the three months ended September 30, 2020. While the average yield remained comparable to the three months ended September 30, 2020, the average other interest-earning assets increased $41.3 million compared to the three months ended September 30, 2020 primarily from buildup of cash as a result of securities activity, PPP loan funds and government stimulus payments deposited with the Bank.

Interest Expense

•Interest expense decreased $464,000, or 37.4%, to $776,000 for the three months ended September 30, 2021 compared to $1.2 million for the three months ended September 30, 2020.

◦Interest expense on deposits decreased $435,000, or 37.8%, to $715,000 for the three months ended September 30, 2021 compared to $1.2 million for the three months ended September 30, 2020. While average interest-earning deposits increased $33.7 million compared to the three months ended September 30, 2020, interest rate declines for all products driven by pandemic-related interest rate cuts resulted in a 21 bp, or 39.5%, decrease in average cost compared to the three months ended September 30, 2020. In addition, average time deposits and the related average cost decreased $29.5 million and 37 bps, respectively.

◦Interest expense on other borrowed funds decreased $26,000, or 41.9%, to $36,000 for the three months ended September 30, 2021 primarily due to FHLB long-term borrowings that matured and were paid off throughout the last year that resulted in a $5.0 million decrease in average balance.

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Average Balances and Yields. The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. Average balances are derived from daily balances over the periods indicated. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. FTE yield adjustments have been made for tax exempt loan and securities interest income utilizing a marginal federal income tax rate of 21.0% for the periods presented. As such, amounts will not agree to income as reported in the consolidated financial statements. The yields and costs for the periods indicated are derived by dividing annualized income or expense by the average balances of assets or liabilities, respectively, for the periods presented.

	Three Months Ended September 30,
	2021						2020
	Average Balance		Interest and Dividends		Yield/ Cost (1)		Average Balance		Interest and Dividends		Yield/ Cost (1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)	$	1,004,474	$	9,740	3.85	%	$	1,035,426	$	10,744	4.13	%
Debt Securities
Taxable	197,763		843		1.71		123,332		753		2.44
Tax Exempt	11,647		90		3.09		13,054		97		2.97
Marketable Equity Securities	2,655		19		2.86		2,580		19		2.95
Other Interest-Earning Assets	164,447		135		0.33		123,171		96		0.31
Total Interest-Earning Assets	1,380,986		10,827		3.11		1,297,563		11,709		3.59
Noninterest-Earning Assets	88,291						115,567
Total Assets	$	1,469,277					$	1,413,130
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (3)	$	275,411	48		0.07	%	$	245,977	99		0.16	%
Savings (3)	251,801		21		0.03		230,567		32		0.06
Money Market (3)	198,167		55		0.11		185,644		140		0.30
Time Deposits (3)	168,654		591		1.39		198,184		879		1.76
Total Interest-Bearing Deposits (3)	894,033		715		0.32		860,372		1,150		0.53
Short-Term Borrowings
Securities Sold Under Agreements to Repurchase	40,818		25		0.24		42,512		28		0.26
Other Borrowings	6,000		36		2.38		11,000		62		2.24
Total Interest-Bearing Liabilities	940,851		776		0.33		913,884		1,240		0.54
Noninterest-Bearing Demand Deposits	387,746						337,441
Other Liabilities	8,019						8,477
Total Liabilities	1,336,616						1,259,802
Stockholders' Equity	132,661						153,328
Total Liabilities and Stockholders' Equity	$	1,469,277					$	1,413,130
Net Interest Income (FTE) (Non-GAAP) (4)			$	10,051					$	10,469
Net Interest Rate Spread (FTE) (Non-GAAP) (4)(5)					2.78	%					3.05	%
Net Interest-Earning Assets (6)	$	440,135					$	383,679
Net Interest Margin (GAAP) (7)					2.88						3.19
Net Interest Margin (FTE) (Non-GAAP) (4)(7)					2.89						3.21
Return on Average Assets (1)					0.54						(4.90)
Return on Average Equity (1)					5.93						(45.13)
Average Equity to Average Assets					9.03						10.85
Average Interest-Earning Assets to Average Interest-Bearing Liabilities					146.78						141.98
PPP Loans	$	40,313	$	484	4.76		$	70,571	$	454	2.56

(1)Annualized based on three months ended results.

(2)Net of the allowance for loan losses, and includes nonaccrual loans with a zero yield and loans held for sale.

(3)Includes Deposits Held for Sale

(4)See section entitled "Explanation of Use of Non-GAAP Financial Measures" appearing earlier in this quarterly report.

(5)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.

(6)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(7)Net interest margin represents annualized net interest income divided by average total interest-earning assets.

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Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. FTE yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal income tax rate of 21.0%. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. The total column represents the sum of the prior columns.

	Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020
	Increase (Decrease) Due to
	Volume		Rate		Total
(Dollars in thousands) (Unaudited)
Interest and Dividend Income:
Loans, net	$	(288)	$	(716)	$	(1,004)
Debt Securities:
Taxable	360		(270)		90
Exempt From Federal Tax	(11)		4		(7)
Marketable Equity Securities	1		(1)		—
Other Interest-Earning Assets	33		6		39
Total Interest-Earning Assets	95		(977)		(882)
Interest Expense:
Deposits	36		(471)		(435)
Short-Term Borrowings:
Securities Sold Under Agreements to Repurchase	(1)		(2)		(3)
Other Borrowings	(30)		4		(26)
Total Interest-Bearing Liabilities	5		(469)		(464)
Change in Net Interest and Dividend Income	$	90	$	(508)	$	(418)

Provision for Loan Losses. There was no provision for loan losses for the three months ended September 30, 2021 compared to $1.2 million for the three months ended September 30, 2020. Specific loan loss reserves on impaired loans decreased in the current quarter, but was partially offset by an increase in loan balances that require a loan loss reserve, which excludes PPP loans and loans held for sale. The $1.2 million provision in the prior period was primarily due to two commercial real estate loans secured by hotels that were impacted by the COVID-19 pandemic and were driving factors in a $2.3 million increase in specific reserves. This was partially offset by a reduction in the qualitative factors related to economic trends and industry conditions due to improving macroeconomic conditions after the second quarter 2020 pandemic-related shutdown.

Noninterest Income. Noninterest income increased $25,000, or 1.2%, to $2.2 million for the three months ended September 30, 2021, and remained consistent with $2.2 million for the three months ended September 30, 2020.

•Service fees increased $48,000 to $602,000 for the three months ended September 30, 2021, compared to $554,000 for the three months ended September 30, 2020 due to an increase in customer account usage compared to the prior year period.

•Insurance commissions increased $115,000 to $1.2 million for the three months ended September 30, 2021 compared to $1.1 million for the three months ended September 30, 2020 primarily due to an increase in commercial-related insurance policy revenue.

•Net gain on sale of loans was $49,000 for the three months ended September 30, 2021 compared to $435,000 for the three months ended September 30, 2020, primarily due to increased mortgage loan production from refinances in the prior year, which were sold to reduce interest rate risk on lower yielding, long-term assets. In addition, in the current quarter, the Bank sold a substandard commercial real estate loan, which resulted in a $78,000 loss on sale.

45

•Other income was $80,000 for the three months ended September 30, 2021 compared to a $2,000 loss for the three months ended September 30, 2020 due to an $82,000 valuation allowance adjustment on mortgage servicing rights in the current period.

Noninterest Expense. Noninterest expense decreased $19.2 million, or 66.3%, to $9.8 million for the three months ended September 30, 2021 compared to $29.0 million for the three months ended September 30, 2020. Excluding the impact of non-cash charges related to an $18.7 million goodwill impairment and $884,000 writedown on fixed assets in the prior year period, noninterest expense increased $380,000 to $9.8 million for the three months ended September 30, 2021 compared to $9.4 million for the three months ended September 30, 2020. The current period was impacted by $1.3 million of other branch optimization and operational efficiency strategic expenses.

•Salaries and employee benefits decreased $337,000 to $4.8 million for the three months ended September 30, 2021 compared to $5.1 million for the three months ended September 30, 2020. The decrease is primarily due the branch optimization initiative as well as $113,000 of one-time payments in the prior period related to the transition and retention of a permanent CEO.

•Occupancy expense decreased $144,000 to $615,000 for the three months ended September 30, 2021 compared to $759,000 for the three months ended September 30, 2020. The decrease is primarily due to the branch optimization initiative and the recognition in the prior year period of a one-time $84,000 early lease termination payment from the Bethlehem branch closure.

•Contracted services increased $910,000 to $1.4 million for the three months ended September 30, 2021 compared to $531,000 for the three months ended September 30, 2020 The current period includes $1.2 million of expenses associated with 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 and engagement of other third party specialists to assist in core platform improvements and efficiencies. The prior period included expenses related to the hiring of temporary employees to assist with PPP loan processing and consultants used to assist in infrastructure improvements.

•Data processing increased $59,000 to $541,000 for the three months ended September 30, 2021 compared to $482,000 for the three months ended September 30, 2020. This is primarily due to technology investments associated with the branch optimization and efficiency initiative.

•Federal Deposit Insurance Corporation (“FDIC”) assessment expense increased $121,000 to $293,000 for the three months ended September 30, 2021 compared to $172,000 for the three months ended September 30, 2020. The increase in assessment was due to an increase in deposits as well as a net loss recognized during the assessment period and the increase in nonperforming loans negatively impacting the assessment rate in the current period.

•Legal and professional fees increased $19,000 to $180,000 for the three months ended September 30, 2021 compared to $161,000 for the three months ended September 30, 2020 due to a legal fees associated with the branch optimization initiative in the current period surpassing fees in the prior period associated with the retention of a permanent CEO.

•Advertising increased $77,000 to $225,000 for the three months ended September 30, 2021 compared to $148,000 for the three months ended September 30, 2020 due to increased marketing initiatives in the current period associated with the Bank's 120th anniversary.

•Amortization of intangible assets decreased $86,000 to $446,000 for the three months ended September 30, 2021 compared to $532,000 for the three months ended September 30, 2020 primarily due to current year impairment in core deposit intangible asset from the announcement of the branch sales, which reduced the remaining amount of intangible assets to amortize.

Income Taxes. Income tax expense was $452,000 for the three months ended September 30, 2021 compared to income tax benefit of $184,000 for the three months ended September 30, 2020. This change was primarily related to pretax income in the current period. While the goodwill impairment charge in the prior period was non-tax deductible, income tax benefit for the three months ended September 30, 2020 was impacted by a $338,000 benefit related to the reversal of a deferred tax liability associated with goodwill. Due to goodwill being partially impaired, a proportional amount of the deferred tax liability was reversed.

Results of Operations for the Nine Months Ended September 30, 2021 and 2020

Overview. Net income was $4.6 million for the nine months ended September 30, 2021, an increase of $18.3 million compared to net loss of $13.7 million for the nine months ended September 30, 2020. Prior year results were impacted by the following:

•The Company conducted a goodwill impairment analysis and, due to the macroeconomic impacts of the pandemic and the overall industry-wide decline in value of stocks and earnings expectations in the banking sector at that time,

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including the Company's stock, the Company determined its goodwill was no longer supported by its estimate of the Company’s fair value. Therefore, $18.7 million of goodwill was deemed impaired and written off. This non-cash expense was deemed non-core and had no impact on tangible equity, cash flows, liquidity or regulatory capital.

•The Company incurred a non-cash impairment of fixed assets of $884,000 as a result of the Monessen branch closure whereby the property was written down to fair value. The impairment charge primarily related to the write off of the unamortized purchase accounting adjustment associated with the branch, which was the former headquarters of FedFirst Financial Corporation acquired through merger in 2014.

Net Interest and Dividend Income. Net interest and dividend income decreased $1.3 million, or 4.3% to $29.9 million for the nine months ended September 30, 2021 compared to $31.3 million for the nine months ended September 30, 2020. Net interest margin (Non-GAAP FTE) decreased 42 bps to 2.93% for the nine months ended September 30, 2021 compared to 3.35% the nine months ended September 30, 2020. Net interest margin (GAAP) decreased to 2.92% for the nine months ended September 30, 2021 compared to 3.34% for the nine months ended September 30, 2020. While the Company has further controlled its deposit cost structure as deposit balances increased and benefited from nonrenewal or repricing of higher cost time deposits, the net interest margin decreased primarily due to the low interest rate environment decreasing yields on loans and securities.

Interest and Dividend Income

•Interest and dividend income decreased $3.1 million, or 8.7%, to $32.6 million for the nine months ended September 30, 2021 compared to $35.7 million for the nine months ended September 30, 2020.

◦Interest income on loans decreased $2.3 million or 7.0% to $29.8 million during the nine months ended September 30, 2021 compared to $32.1 million for the nine months ended September 30, 2020. Although average loans increased $17.5 million, primarily driven by PPP loans, the loan yield for the nine months ended September 30, 2021 decreased 37 bps to 3.92% compared to the nine months ended September 30, 2020 due to the full year impact of the COVID-19 pandemic-related declines in market interest rates beginning in March 2020.

◦Interest and fee income on PPP loans was $1.8 million for the nine months ended September 30, 2021 and contributed 3 bps to loan yield, compared to $770,000 for the nine months ended September 30, 2020, which decreased loan yield 7 bps in the prior period.

◦The impact of the accretion of the credit mark on acquired loan portfolios was $385,000 for the nine months ended September 30, 2021 compared to $293,000 for the nine months ended September 30, 2020, or 5 bps in the current period compared to 4 bps in the prior period.

◦Interest income on taxable investment securities decreased $770,000, or 26.6%, to $2.1 million for the nine months ended September 30, 2021 compared to $2.9 million for the nine months ended September 30, 2020 driven by a $9.0 million increased in average taxable investment securities and an 86 bps decrease in average yield. The Federal Reserve pandemic-driven decision to drop the benchmark interest rate in March 2020 resulted in significant calls of U.S. government agency securities and paydowns on mortgage-backed securities in the declining rate environment, which were replaced by lower-yielding securities.

◦Interest from other interest-earning assets, which primarily consists of interest-earning cash, decreased $34,000, or 8.1% for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 even though average balances increased $95.9 million primarily related to funds received from deposit and loan activity. The impact on interest income was primarily due to pandemic-driven declines on market interest rates earned on deposits at other financial institutions, which resulted in a 32 bp decrease in yield.

Interest Expense

•Interest expense decreased $1.8 million, or 39.8%, to $2.7 million for the nine months ended September 30, 2021 compared to $4.4 million for the nine months ended September 30, 2020.

◦Interest expense on deposits decreased $1.6 million, or 39.8%, to $2.5 million for the nine months ended September 30, 2021 compared to $4.1 million for the nine months ended September 30, 2020. While average interest-bearing deposits increased $41.2 million, interest rate declines for all products driven by pandemic-related interest rate cuts, nonrenewal or repricing of higher cost time deposits, and overall efforts to control pricing resulted in a 28 bp decrease in average cost compared to the nine months ended September 30, 2020.

◦Interest expense on other borrowed funds decreased $82,000, or 42.3%, to $112,000 for the nine months ended September 30, 2021 compared to $194,000 for the nine months ended September 30, 2020 primarily due to FHLB long-term borrowings that matured and were paid off throughout the last year that resulted in a $5.2 million decrease in average balance.

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Average Balances and Yields. The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. Average balances are derived from daily balances over the periods indicated. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. FTE yield adjustments have been made for tax exempt loan and securities interest income utilizing a marginal federal income tax rate of 21% for the periods presented. As such, amounts will not agree to income as reported in the consolidated financial statements. The yields and costs for the periods indicated are derived by dividing annualized income or expense by the average balances of assets or liabilities, respectively, for the periods presented.

	Nine Months Ended September 30,
	2021						2020
	Average Balance		Interest and Dividends		Yield/ Cost (1)		Average Balance		Interest and Dividends		Yield/ Cost (1)
(Dollars in thousands) (Unaudited)
Assets:
Interest-Earning Assets:
Loans, Net (2)	$	1,017,632	$	29,872	3.92	%	$	1,000,157	$	32,152	4.29	%
Debt Securities
Taxable	148,718		2,124		1.90		139,691		2,894		2.76
Tax Exempt	12,284		282		3.06		14,660		354		3.22
Marketable Equity Securities	2,645		63		3.18		2,575		59		3.06
Other Interest-Earning Assets	190,913		384		0.27		95,040		418		0.59
Total Interest-Earning Assets	1,372,192		32,725		3.19		1,252,123		35,877		3.83
Noninterest-Earning Assets	87,863						114,271
Total Assets	$	1,460,055					$	1,366,394
Liabilities and Stockholders' Equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits (3)	$	270,136	181		0.09	%	$	236,293	506		0.29	%
Savings (3)	246,340		78		0.04		225,473		156		0.09
Money Market (3)	198,408		223		0.15		183,103		576		0.42
Time Deposits (3)	177,690		2,007		1.51		206,463		2,898		1.87
Total Interest-Bearing Deposits (3)	892,574		2,489		0.37		851,332		4,136		0.65
ST Borrowings
Securities Sold Under Agreements to Repurchase	43,745		72		0.22		35,923		112		0.42
Other Borrowings	6,396		112		2.34		11,591		194		2.24
Total Interest-Bearing Liabilities	942,715		2,673		0.38		898,846		4,442		0.66
Noninterest-Bearing Demand Deposits	374,865						305,677
Other Liabilities	8,293						9,025
Total Liabilities	1,325,873						1,213,548
Stockholders' Equity	134,182						152,846
Total Liabilities and Stockholders' Equity	$	1,460,055					$	1,366,394
Net Interest Income (FTE) (Non-GAAP) (4)			$	30,052					$	31,435
Net Interest Rate Spread (FTE) (Non-GAAP) (4)(5)					2.81	%					3.17	%
Net Interest-Earning Assets (6)	$	429,477					$	353,277
Net Interest Margin (GAAP) (7)					2.92						3.34
Net Interest Margin (FTE) (Non-GAAP) (4)(7)					2.93						3.35
Return on Average Assets (1)					0.42						(1.34)
Return on Average Equity (1)					4.59						(11.99)
Average Equity to Average Assets					9.19						11.19
Average Interest-Earning Assets to Average Interest-Bearing Liabilities					145.56						139.30
PPP Loans	$	51,579	$	1,797	4.66		$	39,241	$	770	2.62

(1)Annualized based on nine months ended results.

(2)Net of the allowance for loan losses, and includes nonaccrual loans with a zero yield and loans held for sale.

(3)Includes Deposits Held for Sale

(4)See section entitled "Explanation of Use of Non-GAAP Financial Measures" appearing earlier in this quarterly report.

(5)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.

(6)Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(7)Net interest margin represents annualized net interest income divided by average total interest-earning assets.

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Rate Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. FTE yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal income tax rate of 21%. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. The total column represents the sum of the prior columns.

	Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020
	Increase (Decrease) Due to
	Volume		Rate		Total
(Dollars in thousands) (Unaudited)
Interest and Dividend Income:
Loans, net	$	528	$	(2,808)	$	(2,280)
Debt Securities:
Taxable	179		(949)		(770)
Exempt From Federal Tax	(55)		(17)		(72)
Marketable Equity Securities	2		2		4
Other Interest-Earning Assets	273		(307)		(34)
Total Interest-Earning Assets	927		(4,079)		(3,152)
Interest Expense:
Deposits	213		(1,860)		(1,647)
Short-Term Borrowings:
Securities Sold Under Agreements to Repurchase	22		(62)		(40)
Other Borrowings	(91)		9		(82)
Total Interest-Bearing Liabilities	144		(1,913)		(1,769)
Change in Net Interest and Dividend Income	$	783	$	(2,166)	$	(1,383)

Provision for Loan Losses. The provision for loan losses had a $1.2 million recovery for the nine months ended September 30, 2021, compared to a $4.0 million provision for the nine months ended September 30, 2020. The pandemic resulted in a dramatic increase in unemployment and recessionary economic conditions in the prior year. Based on evaluation of the macroeconomic conditions, the qualitative factors used in the allowance for loan loss analysis were increased at the onset of the pandemic, primarily related to economic trends and industry conditions, because of vulnerable industries such as hospitality, oil and gas, retail and restaurants and resulted in the prior year provision. The prior year also included the impacts from an increase in specific reserves primarily due to two commercial real estate loans secured by hotels that were impacted by the COVID-19 pandemic. Those qualitative factors were decreased as the economic impacts of the pandemic eased. In addition, a $11.0 million decrease in net reservable loans compared to September 30, 2020, which excludes PPP loan activity and loans held for sale, combined with a decrease in specific reserves on impaired loans and improving economic and industry condition contributed to the recovery of provision in the current period.

Noninterest Income. Noninterest income increased $898,000, or 13.4%, to $7.6 million for the nine months ended September 30, 2021, compared to $6.7 million for the nine months ended September 30, 2020.

•Service fees increased $116,000 to $1.8 million for the nine months ended September 30, 2021, compared to $1.6 million for the nine months ended September 30, 2020 due to an increase in customer account usage compared to the prior year period when shelter-in-place orders occurred at the onset of the COVID-19 pandemic.

•Insurance commissions increased $523,000, or 15.1%, to $4.0 million for the nine months ended September 30, 2021, compared to $3.5 million for the nine months ended September 30, 2020 due to an increase contingency fees as well as commercial-related insurance policy revenue. Contingency fees are profit sharing commissions that are contingent upon several factors including, but not limited to, eligible written premiums, incurred losses, policy cancellations and stop loss charges.

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•Net gain on sales of loans was $166,000 for the nine months ended September 30, 2021 compared to $1.0 million for the nine months ended September 30, 2020 primarily due to decreased mortgage loan production from refinances, which are sold to reduce interest rate risk on lower yielding, long-term assets. In addition, in the current year, the Bank sold a substandard commercial real estate loan, which resulted in a $78,000 loss on sale.

•Net gain on securities was $482,000 for the nine months ended September 30, 2021 compared to $20,000 for the nine months ended September 30, 2020. In the current period, the Company recognized a $231,000 net gain on sale of debt and equity securities primarily from sales of higher-interest securities with faster prepayment speeds combined with a $251,000 increase in fair value on the equity securities portfolio, primarily comprised of bank stocks, which experienced a recovery in fair value from pandemic related losses. In the prior year, there was a net gain of $489,000 on sales of investment securities from sales of higher-interest securities with faster prepayment speeds that was offset by a $469,000 decrease in fair value in the equity securities portfolio due to the COVID-19 impacts on the banking industry.

•Other Income was $291,000 for the nine months ended September 30, 2021 compared to Other Loss of $240,000 in the nine months ended September 30, 2020. In the current period there was a $242,000 reduction in the valuation allowance on mortgage servicing rights compared to a $269,000 valuation allowance adjustment from temporary impairment in the prior period caused by a decline in the interest rate environment that increased prepayment speeds and resulted in a decrease in fair value of the serviced mortgage portfolio. In addition, there was a $52,000 increase in amortization on mortgage servicing rights in the current period.

Noninterest Expense. Noninterest expense decreased $14.2 million, or 30.1%, to $32.9 million for the nine months ended September 30, 2021 compared to $47.0 million for the nine months ended September 30, 2020. The current year was largely impacted by a $2.3 million writedown on fixed assets and $1.2 million intangible asset impairment as discussed previously whereas the prior year was impacted by $18.7 million goodwill impairment and an $884,000 writedown on fixed assets as previously noted. Excluding the impact of these non-cash charges, noninterest expense increased $2.0 million, or 7.2%, to $29.4 million for the nine months ended September 30, 2021 compared to $27.5 million the nine months ended September 30, 2020. The current period was also impacted by $2.9 million of other branch optimization and operational efficiency strategic expenses.

•Salaries and employee benefits increased $74,000 for the nine months ended September 30, 2021 compared to $14.7 million for the nine months ended September 30, 2020. The increase is primarily due to an increase in employee benefit expenses due to the prior period impact from a $407,000 one-time payment that offset employee benefits related to the transition from a self-funded to a fully insured health insurance plan. The current period was impacted by the recognition of $335,000 in severance related to the branch optimization initiative whereas in the prior period the Company incurred costs associated with the Community Bank Cares 10% premium pay during the pandemic and the recognition of approximately $388,000 of one-time payments related to the transition and retention of a permanent CEO.

•Occupancy expense increased $158,000 to $2.3 million for the nine months ended September 30, 2021 compared to $2.2 million for the nine months ended September 30, 2020. The increase is due to the recognition of a $227,000 lease impairment related to the consolidation of a branch as part of the branch optimization initiative in the current period compared to an $84,000 early lease termination payment from a branch closure in the prior period.

•Equipment expense increased $81,000 to $782,000 for the nine months ended September 30, 2021 compared to $701,000 for the nine months ended September 30, 2020 as the result of an increase in repairs and maintenance.

•Data processing increased $299,000 to $1.7 million for the nine months ended September 30, 2021 compared to $1.4 million for the nine months ended September 30, 2020 primarily due to $110,000 in deconversion costs associated with the branch sales as well as other technology investments associated with the branch optimization and efficiency initiative.

•Contracted services increased $1.4 million to $2.9 million for the nine months ended September 30, 2021 compared to $1.5 million for the nine months ended September 30, 2020, primarily due to $1.9 million of expenses associated with 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 and engagement of other third party specialists to assist in core platform improvements and efficiencies. The prior period included expense related to the hiring of temporary employees to assist with PPP loan processing, consultants used to assist in infrastructure improvements, and $177,000 of consulting fees associated with the search for a permanent CEO.

•FDIC assessment expense increased $299,000 to $792,000 for the nine months ended September 30, 2021 compared to $493,000 for the nine months ended September 30, 2020.The increase in assessment was due to the net losses recognized during the assessment period and an increase in nonperforming loans negatively impacting the assessment rate in the current period.

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•Legal and professional fees increased $221,000 to $788,000 for the nine months ended September 30, 2021 compared to $567,000 for the nine months ended September 30, 2020 due to a $209,000 investment banker success-based fee and legal fees related to the Agreement with Citizens Bank for the branch sales. The prior period included fees associated with the retention of a permanent CEO.

•Other real estate owned income increased $123,000 to $153,000 for the nine months ended September 30, 2021 compared to $30,000 for the nine months ended September 30, 2020 primarily due to an $80,000 gain on sale of a property sold in the current period.

•Amortization of intangible assets decreased $115,000 to $1.5 million for the nine months ended September 30, 2021 compared to $1.6 million for the nine months ended September 30, 2020 primarily due to current period impairment in core deposit intangible asset from the announcement of the branch sales, which reduced the remaining amount of intangible assets to amortize.

•Other noninterest expense decreased $147,000 to $2.8 million for the nine months ended September 30, 2021 compared to $3.0 million for the nine months ended September 30, 2020 due to a decrease in loan-related expenses from the increased volume of refinancing in the prior period.

Income Taxes. Income tax expense increased $577,000 to $1.2 million for the nine months ended September 30, 2021 compared to $640,000 for the nine months ended September 30, 2020. This change was primarily due to an increase in pretax income in the current period. While the goodwill impairment charge in the prior period was non-tax deductible, income tax benefit for the three months ended September 30, 2020 was impacted by a $338,000 benefit related to the reversal of a deferred tax liability associated with goodwill. Due to goodwill being partially impaired, a proportional amount of the deferred tax liability was reversed.

Off-Balance Sheet Arrangements.

Other than loan commitments and standby and performance letters of credit, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a significant current or future effect on our financial condition, revenues, expenses, results of operations, liquidity, capital expenditures, or capital resources that are material to investors. Refer to Note 10 in the Notes to Consolidated Financial Statements of this report for a summary of commitments outstanding as of September 30, 2021 and December 31, 2020.

Liquidity and Capital Management

Liquidity. Liquidity is the ability to meet current and future financial obligations of a short-term nature. The Company’s primary sources of funds consist of deposit inflows, loan repayments and maturities, calls and sales of securities. While maturities and scheduled amortization of loans and securities are typically predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

The Company regularly adjusts its investments in liquid assets based upon its assessment of expected loan demand, expected deposit flows, yields available on interest-earning deposits and securities, and the objectives of its asset/liability management program. Excess liquid assets are invested generally in interest-earning deposits with other banks and short- and intermediate-term securities. The Company believes that it had sufficient liquidity at September 30, 2021 to satisfy its short- and long-term liquidity needs.

The Company’s most liquid assets are cash and due from banks, which totaled $173.5 million at September 30, 2021. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. Unpledged securities, which provide an additional source of liquidity, totaled $37.0 million at September 30, 2021. In addition, at September 30, 2021, the Company had the ability to borrow up to $420.4 million from the FHLB of Pittsburgh, of which $351.3 million is available. The Company also has the ability to borrow up to $82.8 million million from the FRB through its Borrower-In-Custody line of credit agreement and the Company also maintains multiple line of credit arrangements with various unaffiliated banks totaling $50.0 million as of both September 30, 2021 and December 31, 2020.

At September 30, 2021, $68.2 million, or 42.0% of total time deposits mature within one year. If these time deposits do not remain with the Company, the Company will be required to seek other sources of funds. Depending on market conditions, the Company may be required to pay higher rates on such deposits or other borrowings than it currently pays on these time deposits. The Company believes, however, based on past experience that a significant portion of its time deposits will remain with it, either as time deposits or as other deposit products. The Company has the ability to attract and retain deposits by adjusting the interest rates offered.

We are committed to maintaining a strong liquidity position; therefore, we monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. The marginal cost of new funding, however, whether from deposits or borrowings from the FHLB, will be carefully considered as we monitor our liquidity needs. Therefore, in order to minimize our cost of funds, we may consider additional borrowings from the FHLB in the future.

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CB Financial is a separate legal entity from the Bank and must provide for its own liquidity to pay any dividends to its shareholders and for other corporate purposes. Its primary source of liquidity is dividend payments it receives from the Bank. The Bank’s ability to pay dividends to CB Financial is subject to regulatory limitations. At September 30, 2021, CB Financial (on an unconsolidated, stand-alone basis) had liquid assets of $7.4 million. The ability to pay future dividends or conduct stock repurchases may be limited under applicable banking regulations and regulatory policies due to expected losses for future periods and/or the inability to upstream funds from the Bank to the Company as a result of lower income or regulatory capital levels.

Capital Management. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, each must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Under the Regulatory Capital Rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity Tier I capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets.

At September 30, 2021 and December 31, 2020, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. At September 30, 2021, the Bank's capital ratios were not affected by loans modified in accordance with Section 4013 of the CARES Act. In addition, PPP loans received a zero-percent risk weight under the regulatory capital rules regardless of whether they were pledged as collateral to the Federal Reserve Bank's PPP lending facility, but were included in the Bank's leverage ratio requirement due to the Bank not pledging the loans as collateral to the PPP lending facility.

The following table presents the Bank’s regulatory capital amounts and ratios, as well as the minimum amounts and ratios required to be well capitalized as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Ratio		Amount		Ratio
(Dollars in thousands)
Common Equity Tier 1 (to risk weighted assets)
Actual	$	107,277	11.53	%	$	108,950	11.79	%
For Capital Adequacy Purposes	41,870		4.50		41,598		4.50
To Be Well Capitalized	60,479		6.50		60,086		6.50
Tier 1 Capital (to risk weighted assets)
Actual	107,277		11.53		108,950		11.79
For Capital Adequacy Purposes	55,826		6.00		55,464		6.00
To Be Well Capitalized	74,435		8.00		73,952		8.00
Total Capital (to risk weighted assets)
Actual	118,858		12.77		120,520		13.04
For Capital Adequacy Purposes	74,435		8.00		73,952		8.00
To Be Well Capitalized	93,044		10.00		92,440		10.00
Tier 1 Leverage (to adjusted total assets)
Actual	107,277		7.38		108,950		7.81
For Capital Adequacy Purposes	58,133		4.00		55,765		4.00
To Be Well Capitalized	72,666		5.00		69,706		5.00

Item 3. Quantitative and Qualitative Disclosure about Market Risk.

Management of Interest Rate Risk. The majority of the Company’s assets and liabilities are monetary in nature. Consequently, the Company’s most significant form of market risk is interest rate risk and a principal part of its business strategy is to manage interest rate risk by reducing the exposure of net interest income to changes in market interest rates. Accordingly, the Company’s Board has established an Asset/Liability Management Committee, which is responsible for evaluating the interest rate risk

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inherent in the Company’s assets and liabilities, for determining the level of risk that is appropriate given the Company’s business strategy, operating environment, capital, liquidity and performance objectives; and for managing this risk consistent with the guidelines approved by the Board. Senior management monitors the level of interest rate risk and the Asset/Liability Management Committee meets on a quarterly basis to review its asset/liability policies and position and interest rate risk position, and to discuss and implement interest rate risk strategies.

The Company monitors interest rate risk through the use of a simulation model. The quarterly reports developed in the simulation model assist the Company in identifying, measuring, monitoring and controlling interest rate risk to ensure compliance within the Company’s policy guidelines. This quantitative analysis measures interest rate risk from both a capital and earnings perspective. With regard to earnings, movements in interest rates and the shape of the yield curve significantly influence the amount of net interest income that is recognized. Movements in market interest rates significantly influence the spread between the interest earned on our interest-earning assets and the interest paid on our interest-bearing liabilities. Our internal interest rate risk analysis calculates the sensitivity of our projected net interest income over a one year period utilizing a static balance sheet assumption through which incoming and outgoing asset and liability cash flows are reinvested into similar instruments. Product pricing and earning asset prepayment speeds are adjusted for each rate scenario.

With regard to capital, our internal interest rate risk analysis calculates the sensitivity of our economic value of equity (“EVE”) ratio to movements in interest rates. EVE represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities. EVE attempts to quantify our economic value using a discounted cash flow methodology while the EVE ratio reflects that value as a form of capital ratio. The degree to which the EVE ratio changes for any hypothetical interest rate scenario from its base case measurement is a reflection of an institution’s sensitivity to interest rate risk.

For both net interest income and capital at risk, our interest rate risk analysis calculates a base case scenario that assumes no change in interest rates. The model then measures changes throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve up and down 100, 200 and 300 basis points with additional scenarios modeled where appropriate. The model requires that interest rates remain positive for all points along the yield curve for each rate scenario which may preclude the modeling of certain falling rate scenarios during periods of lower market interest rates such as that experienced in the current rate environment at September 30, 2021

The table below sets forth, as of September 30, 2021, the estimated changes in EVE and net interest income at risk that would result from the designated instantaneous changes in market interest rates. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.

	EVE						EVE as a Percent of Portfolio Value of Assets				Net Interest Earnings at Risk
Change in Interest Rates in Basis Points	Dollar Amount		Dollar Change		Percent Change		NPV Ratio		Basis Point Change		Dollar Amount		Dollar Change		Percent Change
(Dollars in thousands)
+300	$	146,125	$	1,077	0.7	%	10.76	%		89	$	44,525	$	6,718	17.8	%
+200	147,720		2,672		1.8		10.59			72	42,567		4,760		12.6
+100	147,515		2,467		1.7		10.29			42	39,872		2,065		5.5
Flat	145,048		—		—		9.87			—	37,807		—		—
-100	139,214		(5,834)		(4.0)		9.33			(54)	34,900		(2,907)		(7.7)

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurement. Modeling changes in EVE and net interest income require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the table presented assumes that the composition of the Company’s interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured, and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. Accordingly, although the table provides an indication of the Company’s interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on EVE and net interest income and will differ from actual results. EVE calculations also may not reflect the fair values of financial instruments. For example, changes in market interest rates can increase the fair values of the Company’s loans, deposits and borrowings.

53

Item 4. Controls and Procedures.

(a)Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2021. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost benefit relationship of possible controls and procedures.

Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the SEC (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosures.

(b)Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2021, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Periodically, there have been various claims and lawsuits against us, such as claims to enforce liens, claims seeking damages for improper collection procedures or misrepresentations, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans and other issues incident to our business. We are not a party to any other pending legal proceedings that we believe would have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, which could materially affect our business, financial condition or future results. The risks described in such Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The Company made the following purchases of its common stock during the three months ended September 30, 2021.

Period	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of the Publicly Announced Program	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program
July 1-31, 2021	24,170	$	22.84	24,170	$	6,387,419
August 1-31, 2021	26,137	23.43		26,137	$	5,775,101
September 1-30, 2021	31,369	23.16		31,369	$	5,048,489
Total	81,676	$	23.15	81,676

54

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits

3.1	Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to Registration Statement on Form S-4 filed on June 13, 2014 (File No. 333-196749))
3.2	Bylaws, as amended (incorporated herein by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K filed on May 20, 2020)
31.1	Rule 13a-14(a) / 15d-14(a) Certification (Chief Executive Officer)
31.2	Rule 13a-14(a) / 15d-14(a) Certification (Chief Financial Officer)
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials for the quarter ended September 30, 2021, formatted in XBRL (Extensible Business Reporting Language); the (i) Consolidated Statements of Financial Condition, (ii) Consolidated Statements of Income (Loss), (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to the Consolidated Financial Statements (Unaudited)
104	Cover Page Interactive Data File (Embedded within Inline XBRL contained in Exhibit 101)

55

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CB FINANCIAL SERVICES, INC.
		(Registrant)
Date:	November 8, 2021	/s/ John H. Montgomery
		John H. Montgomery
		President and Chief Executive Officer
Date:	November 8, 2021	/s/ Jamie L. Prah
		Jamie L. Prah
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and Chief Accounting Officer)

56

EX-31.1

EXHIBIT 31.1

RULE 13a-14(a)/15d-14(a)

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, John H. Montgomery, President and Chief Executive Officer of CB Financial Services, Inc., certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 of CB Financial Services, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 8, 2021	/s/ John H. Montgomery
		John H. Montgomery
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a)

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Jamie L. Prah, Executive Vice President and Chief Financial Officer of CB Financial Services, Inc., certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 of CB Financial Services, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 8, 2021	/s/ Jamie L. Prah
		Jamie L. Prah
		Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of CB Financial Services, Inc. (the “Company”) for the quarter ended September 30, 2021 as filed with the Securities and Exchange Commission (the “Report”), I, John H. Montgomery, President and Chief Executive Officer of the Company, and Jamie L. Prah, Executive Vice President and Chief Financial Officer, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 8, 2021	/s/ John H. Montgomery
		John H. Montgomery
		President and Chief Executive Officer
Date:	November 8, 2021	/s/ Jamie L. Prah
		Jamie L. Prah
		Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 04, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-36706
Entity Registrant Name	CB FINANCIAL SERVICES, INC.
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	51-0534721
Entity Address, Address Line One	100 N. Market Street
Entity Address, City or Town	Carmichaels
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15320
City Area Code	724
Local Phone Number	966-5041
Title of 12(b) Security	Common stock, par value $0.4167 per share
Trading Symbol	CBFV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,296,539
Entity Central Index Key	0001605301
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash and Due From Banks:
Interest Bearing	$ 131,835	$ 145,636
Non-Interest Bearing	41,688	15,275
Total Cash and Due From Banks	173,523	160,911
Securities:
Available-for-Sale Debt Securities, at Fair Value	218,529	142,897
Equity Securities, at Fair Value	2,822	2,503
Total Securities	221,351	145,400
Loans Held for Sale	17,407	0
Loans, Net of Allowance for Loan Losses of $11,581 and $12,771 at September 30, 2021 and December 31, 2020, Respectively	990,018	1,031,982
Premises and Equipment Held for Sale	795	0
Premises and Equipment, Net	18,502	20,302
Bank-Owned Life Insurance	25,190	24,779
Goodwill	9,732	9,732
Intangible Assets, Net	5,740	8,399
Accrued Interest Receivable and Other Assets	12,560	15,215
TOTAL ASSETS	1,474,818	1,416,720
LIABILITIES
Deposits Held for Sale	102,647	0
Deposits:
Non-Interest Bearing Demand Deposits	373,320	340,569
NOW Accounts	244,004	259,870
Money Market Accounts	190,426	199,029
Savings Accounts	232,679	235,088
Time Deposits	144,727	190,013
Total Deposits	1,185,156	1,224,569
Short-Term Borrowings	42,623	41,055
Other Borrowings	6,000	8,000
Accrued Interest Payable and Other Liabilities	7,405	8,566
TOTAL LIABILITIES	1,343,831	1,282,190
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value; 5,000,000 Shares Authorized	0	0
Common Stock, $0.4167 Par Value; 35,000,000 Shares Authorized, 5,680,993 Shares Issued and 5,330,401 and 5,434,374 Shares Outstanding at September 30, 2021 and December 31, 2020, Respectively	2,367	2,367
Capital Surplus	83,130	82,723
Retained Earnings	51,839	51,132
Treasury Stock, at Cost (350,592 and 246,619 Shares at September 30, 2021 and December 31, 2020, Respectively)	(7,483)	(5,094)
Accumulated Other Comprehensive Income	1,134	3,402
TOTAL STOCKHOLDERS' EQUITY	130,987	134,530
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,474,818	$ 1,416,720

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for Loan Losses	$ 11,581	$ 12,771
Preferred Stock, Shares Authorized (in shares)	5,000,000	5,000,000
Common Stock, Par Value (in dollars per share)	$ 0.4167	$ 0.4167
Common Stock, Shares Authorized (in shares)	35,000,000	35,000,000
Common Stock, Shares Issued (in shares)	5,680,993	5,680,993
Common Stock, Shares Outstanding (in shares)	5,330,401	5,434,374
Treasury Stock, at Cost (in shares)	350,592	246,619

XML

CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
INTEREST AND DIVIDEND INCOME
Loans, Including Fees	$ 9,718	$ 10,709	$ 29,800	$ 32,050
Investment Securities:
Taxable	843	753	2,124	2,894
Tax-Exempt	71	79	223	291
Dividends	19	19	63	59
Other Interest and Dividend Income	135	96	384	418
TOTAL INTEREST AND DIVIDEND INCOME	10,786	11,656	32,594	35,712
INTEREST EXPENSE
Deposits	715	1,150	2,489	4,136
Short-Term Borrowings	25	28	72	112
Other Borrowings	36	62	112	194
TOTAL INTEREST EXPENSE	776	1,240	2,673	4,442
NET INTEREST AND DIVIDEND INCOME	10,010	10,416	29,921	31,270
Provision (Recovery) For Loan Losses	0	1,200	(1,200)	4,000
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR LOAN LOSSES	10,010	9,216	31,121	27,270
NONINTEREST INCOME
Net Gain on Sales of Loans	49	435	166	1,003
Net Gain (Loss) on Securities	24	(59)	482	20
Net Gain on Purchased Tax Credits	18	15	53	46
Net Loss on Disposal of Fixed Assets	0	(65)	(3)	(48)
Income from Bank-Owned Life Insurance	138	140	411	417
Other Income (Loss)	80	(2)	291	(240)
TOTAL NONINTEREST INCOME	2,198	2,173	7,591	6,693
NONINTEREST EXPENSE
Salaries and Employee Benefits	4,787	5,124	14,757	14,683
Occupancy	615	759	2,349	2,191
Equipment	205	220	782	701
Data Processing	541	482	1,666	1,367
FDIC Assessment	293	172	792	493
PA Shares Tax	224	355	714	963
Contracted Services	1,441	531	2,878	1,471
Legal and Professional Fees	180	161	788	567
Advertising	225	148	558	486
Other Real Estate Owned Income	(89)	(12)	(153)	(30)
Amortization of Intangible Assets	446	532	1,481	1,596
Intangible Assets Impairment	0	18,693	1,178	18,693
Writedown of Fixed Assets	2	884	2,270	884
Other Expense	903	919	2,830	2,977
TOTAL NONINTEREST EXPENSE	9,773	28,968	32,890	47,042
Income (Loss) Before Income Tax Expense (Benefit)	2,435	(17,579)	5,822	(13,079)
Income Tax Expense (Benefit)	452	(184)	1,217	640
NET INCOME (LOSS)	$ 1,983	$ (17,395)	$ 4,605	$ (13,719)
EARNINGS (LOSS) PER SHARE
Basic (in dollars per share)	$ 0.37	$ (3.22)	$ 0.85	$ (2.54)
Diluted (in dollars per share)	$ 0.37	$ (3.22)	$ 0.85	$ (2.54)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	5,373,032	5,395,342	5,412,989	5,406,710
Diluted (in shares)	5,390,128	5,395,342	5,420,792	5,406,710
Service Fees
NONINTEREST INCOME
Revenue from contract with customer, excluding assessed tax	$ 602	$ 554	$ 1,762	$ 1,646
Insurance Commissions
NONINTEREST INCOME
Revenue from contract with customer, excluding assessed tax	1,194	1,079	3,998	3,475
Other Commissions
NONINTEREST INCOME
Revenue from contract with customer, excluding assessed tax	$ 93	$ 76	$ 431	$ 374

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income (Loss)		$ 1,983	$ (17,395)	$ 4,605	$ (13,719)
Other Comprehensive (Loss) Income:
Change in Unrealized Gain (Loss) on Investment Securities Available-for-Sale		(733)	(653)	(2,662)	2,292
Income Tax Effect		158	137	571	(481)
Reclassification Adjustment for Gain on Sale of Debt Securities Included in Net Income	[1]	0	0	(225)	(489)
Income Tax Effect	[2]	0	0	48	103
Other Comprehensive (Loss) Income, Net of Income Tax Effect		(575)	(516)	(2,268)	1,425
Total Comprehensive Income (Loss)		$ 1,408	$ (17,911)	$ 2,337	$ (12,294)

[1] Reported in Net Gain (Loss) on Securities on the Consolidated Statements of Income (Loss).

[2] Reported in Income Tax Expense (Benefit) on the Consolidated Statements of Income (Loss).

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income
Beginning balance (in shares) at Dec. 31, 2019		5,680,993
Beginning balance at Dec. 31, 2019	$ 151,097	$ 2,367	$ 82,971	$ 66,955	$ (3,842)	$ 2,646
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(13,719)			(13,719)
Other Comprehensive Income (Loss)	1,425					1,425
Restricted Stock Awards Forfeited	0		96		(96)
Restricted Stock Awards Granted	0		(103)		103
Stock-Based Compensation Expense	370		370
Exercise of Stock Options	(78)		4		(82)
Treasury stock purchased, at cost	(1,908)				(1,908)
Dividends Paid	(3,888)			(3,888)
Ending balance (in shares) at Sep. 30, 2020		5,680,993
Ending balance at Sep. 30, 2020	133,299	$ 2,367	83,338	49,348	(5,825)	4,071
Beginning balance (in shares) at Jun. 30, 2020		5,680,993
Beginning balance at Jun. 30, 2020	152,392	$ 2,367	83,327	68,039	(5,928)	4,587
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	(17,395)			(17,395)
Other Comprehensive Income (Loss)	(516)					(516)
Restricted Stock Awards Granted	0		(103)		103
Stock-Based Compensation Expense	114		114
Dividends Paid	(1,296)			(1,296)
Ending balance (in shares) at Sep. 30, 2020		5,680,993
Ending balance at Sep. 30, 2020	133,299	$ 2,367	83,338	49,348	(5,825)	4,071
Beginning balance (in shares) at Dec. 31, 2020		5,680,993
Beginning balance at Dec. 31, 2020	134,530	$ 2,367	82,723	51,132	(5,094)	3,402
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	4,605			4,605
Other Comprehensive Income (Loss)	(2,268)					(2,268)
Stock-Based Compensation Expense	415		415
Exercise of Stock Options	54		(8)		62
Treasury stock purchased, at cost	(2,451)				(2,451)
Dividends Paid	(3,898)			(3,898)
Ending balance (in shares) at Sep. 30, 2021		5,680,993
Ending balance at Sep. 30, 2021	130,987	$ 2,367	83,130	51,839	(7,483)	1,134
Beginning balance (in shares) at Jun. 30, 2021		5,680,993
Beginning balance at Jun. 30, 2021	132,536	$ 2,367	82,969	51,146	(5,655)	1,709
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	1,983			1,983
Other Comprehensive Income (Loss)	(575)					(575)
Stock-Based Compensation Expense	169		169
Exercise of Stock Options	54		(8)		62
Treasury stock purchased, at cost	(1,890)				(1,890)
Dividends Paid	(1,290)			(1,290)
Ending balance (in shares) at Sep. 30, 2021		5,680,993
Ending balance at Sep. 30, 2021	$ 130,987	$ 2,367	$ 83,130	$ 51,839	$ (7,483)	$ 1,134

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Purchase of common stock (in shares)	81,676		106,973	67,816
Dividends paid, per share (in dollars per share)	$ 0.24	$ 0.24	$ 0.72	$ 0.72

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES
Net Income (Loss)	$ 4,605	$ (13,719)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By Operating Activities
Amortization (Accretion) on Securities	38	(9)
Depreciation and Amortization	1,810	2,578
(Recovery) Provision for Loan Losses	(1,200)	4,000
Intangible Asset Impairment	1,178	0
Goodwill Impairment	0	18,693
Writedown of Fixed Assets	2,270	884
Lease Impairment	227	0
Gain on Securities	(482)	(20)
Gain on Purchased Tax Credits	(53)	(46)
Income from Bank-Owned Life Insurance	(411)	(417)
Proceeds From Mortgage Loans Sold	8,182	24,317
Originations of Mortgage Loans for Sale	(15,289)	(23,314)
Gain on Sale of Loans	(166)	(1,003)
(Gain) Loss on Sale of Other Real Estate Owned and Repossessed Assets	(76)	26
Noncash Expense for Stock-Based Compensation	415	370
Decrease (Increase) in Accrued Interest Receivable	517	(944)
Net Loss on Disposal of Fixed Assets	3	48
Increase (Decrease) in Taxes Payable	295	(253)
Payments on Operating Leases	(251)	(412)
Decrease in Accrued Interest Payable	(277)	(252)
Refund of Federal and State Income Taxes	1,311	0
Other, Net	(68)	(1,329)
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,578	9,198
Investment Securities Available for Sale:
Proceeds From Principal Repayments and Maturities	29,563	91,219
Purchases of Securities	(119,924)	(68,851)
Proceeds from Sale of Securities	11,967	17,893
Net Decrease (Increase) in Loans	33,378	(100,436)
Purchase of Premises and Equipment	(2,275)	(184)
Proceeds from Disposal of Premises and Equipment	0	26
Proceeds From Sale of Other Real Estate Owned	285	99
Decrease (Increase) in Restricted Equity Securities	533	(305)
NET CASH USED IN INVESTING ACTIVITIES	(46,473)	(60,539)
FINANCING ACTIVITIES
Net Increase in Deposits	52,542	80,677
Net Increase in Short-Term Borrowings	12,260	11,490
Principal Payments on Other Borrowed Funds	(2,000)	(3,000)
Cash Dividends Paid	(3,898)	(3,888)
Treasury Stock, Purchases at Cost	(2,451)	(1,908)
Exercise of Stock Options	54	(78)
NET CASH PROVIDED BY FINANCING ACTIVITIES	56,507	83,293
INCREASE IN CASH AND CASH EQUIVALENTS	12,612	31,952
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	160,911	80,217
CASH AND DUE FROM BANKS AT END OF PERIOD	173,523	112,169
Cash Paid For:
Interest on Deposits and Borrowings (Including Interest Credited to Deposits of $2,761 and $4,382, Respectively)	2,951	4,694
Income Taxes	1,524	1,785
SUPPLEMENTAL NONCASH DISCLOSURE:
Transfer of Loans to Loans Held for Sale	10,056	0
Transfer of Premises and Equipment to Premises and Equipment Held for Sale and Other Assets	1,075	0
Transfer of Deposits to Deposits Held for Sale	102,647	0
Other Real Estate Acquired in Settlement of Loans	37	115
Right of Use Asset Recognized	0	329
Lease Liability Recognized	$ 0	$ 329

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CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Statement of Cash Flows [Abstract]
Interest credit to deposit accounts	$ 2,761	$ 4,382

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of CB Financial Services, Inc. (“CB Financial”) and its wholly owned subsidiary, Community Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, Exchange Underwriters, Inc. (“Exchange Underwriters”). CB Financial, the Bank and Exchange Underwriters are collectively referred to as the “Company”. All intercompany transactions and balances have been eliminated in consolidation.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with general practice within the banking industry. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading in any material respect. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and income and expenses for the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, other-than-temporary impairment evaluations of securities, goodwill and intangible assets impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented. All these adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year.

The Company evaluated subsequent events through the date the consolidated financial statements were filed with the SEC and incorporated into the consolidated financial statements the effect of all material known events determined by Accounting Standards Codification ("ASC") 855, Subsequent Events, to be recognizable events.

Nature of Operations

The Company derives substantially all its income from banking and bank-related services which include interest earnings on commercial, commercial mortgage, residential real estate and consumer loan financing, as well as interest earnings on investment securities and fees generated from deposit services to its customers. The Company provides banking services through its subsidiary, Community Bank, a Pennsylvania-chartered commercial bank. The Bank operates 11 branches in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania, and five branches in Marshall, Ohio, Upshur and Wetzel Counties in West Virginia. The Bank is a community-oriented institution offering residential and commercial real estate loans, commercial and industrial loans, and consumer loans as well as a variety of deposit products for individuals and businesses in its market area. Property and casualty, commercial liability, surety and other insurance products are offered through Exchange Underwriters, a full-service, independent insurance agency.

Reclassifications

Certain comparative amounts for the prior year have been reclassified to conform to the current year presentation. Such reclassifications did not affect net income or stockholders’ equity.

Assets and Liabilities Held for Sale

Assets and liabilities (disposal groups) are classified as held for sale when their carrying amounts will be recovered principally through sale when all of the following criteria are met:

•management, having the authority to approve the action, commits to a plan to sell the disposal group;

•the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups;

•an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated;

•the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year;

•the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

•actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Assets and liabilities held for sale are measured at the lower of carrying amount and fair value, less estimated costs to sell, and are presented separately on the Consolidated Statements of Financial Condition. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any estimated costs to sell, each reporting period it remains classified as held for sale and reports any subsequent losses as an adjustment to the carrying value of the disposal group. Assets classified as held for sale are no longer depreciated or amortized.

Loans held for sale may consist of residential real estate loans originated and intended for sale in the secondary market. These loans are generally sold with loan servicing rights retained. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential real estate loans held for sale are included in noninterest income.

Impairment of Long-Lived Assets

The Company routinely performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable and are in excess of their fair value, less estimated costs to sell. If estimated recoverable amounts are lower than carrying values, assets are considered impaired and reduced to their recoverable amounts with the recognized impairment charges recorded in noninterest expense in the Consolidated Statements of (Loss) Income.

Long-lived assets are tested for impairment individually or as part of an asset group. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company follows ASC 360, Property, Plant and Equipment, which requires three steps to identify, recognize and measure the impairment of a long-lived asset (asset group) to be held and used:

Step 1 – Consider whether Indicators of Impairment are Present.

The following are examples of such events or changes in circumstances.

•A significant decrease in the market price of a long-lived asset (asset group).

•A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition.

•A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator.

•An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group).

•A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group).

•A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent.

Step 2—Test for Recoverability

If indicators of impairment are present, the Company performs a recoverability test comparing the sum of the estimated undiscounted cash flows attributable to the long-lived asset or asset group in question to the carrying amount of the long-lived asset or asset group.

Step 3—Measurement of an Impairment Loss

If the undiscounted cash flows used in the recoverability test are less than the carrying amount of the long-lived asset (asset group), the Company estimates the fair value of the long-lived asset or asset group and recognizes an impairment loss when the carrying amount of the long-lived asset or asset group exceeds the estimated fair value.

An impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group must not reduce the carrying amount of

that asset below its fair value whenever the fair value is determinable without undue cost and effort. ASC 360 prohibits the subsequent reversal of an impairment loss for an asset held and used.

Recent Accounting Standards

In August 2021, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update ("ASU") 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The SEC rule changes update and expand the statistical disclosures that bank and savings and loan registrants provide to investors, in light of changes in this sector over the past 30 years. The rules also eliminate certain disclosure items that are duplicative of other SEC rules and requirements of U.S. GAAP. The rules replace Industry Guide 3, Statistical Disclosure by Bank Holding Companies, with updated disclosure requirements in a new subpart of Regulation S-K. The rules are intended to help ensure that investors have access to more meaningful, relevant information to facilitate their investment and voting decisions. The amendments are effective prospectively for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect the adoption of this ASU will have a material impact on the Company's consolidated statements of financial condition or results of operation.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. The elective guidance in the ASU applies to modifications of contract terms that will directly replace, or have the potential to replace, an affected rate with another interest rate index, as well as certain contemporaneous modifications of other contract terms related to the replacement of an affected rate. The ASU notes that changes in contract terms that are made to effect the reference rate reform transition are considered related to the replacement of a reference rate if they are not the result of a business decision that is separate from or in addition to changes to the terms of a contract to effect that transition. The optional expedient allows companies to account for the modification as if it was not substantial (i.e., do not treat as an extinguishment of debt). The ASU is intended to help stakeholders during the global market-wide reference rate transition period. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. While the LIBOR reform may require extensive changes to the contracts that govern LIBOR based products, as well as our systems and processes, we cannot yet determine whether the Company will be able to use the optional expedient for the changes to contract terms that may be required by LIBOR reform and therefore, the Company cannot yet determine the magnitude of the impact or the overall impact of the new guidance on the Company’s consolidated financial condition or results of operation.

In December 2019, FASB issued ASU 2019-12, Income taxes (Topic 740); Simplifying the Accounting for Income Taxes. ASU 2019-12 provides amendments intended to reduce the cost and complexity in accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements. ASU 2019-12 removes the following exceptions from ASC 740, Income Taxes: (i) exceptions to the incremental approach for intraperiod tax allocation; (ii) exceptions to accounting for basis differences when a foreign subsidiary becomes an equity method investment or a foreign equity method investment become a subsidiary; and (iii) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 provides the following amendments that simplify and improve guidance with Topic 740: (i) franchise taxes that are based partially on income; (ii) transactions that result in a step up in the tax basis of goodwill; (iii) separate financial statements of legal entities that are not subject to tax; (iv) enacted changes in tax laws in interim periods; and (v) employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this ASU did not have a material impact on the Company's consolidated statements of financial condition or results of operation.

In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, ASU 2016-13 eliminates the probable initial recognition threshold in current GAAP; and instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however this ASU requires that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects companies holding financial assets and net investment in leases that are not accounted for at fair value through net income. The ASU 2016-13 amendments affect loans, debt securities, trade receivables, net investments in

leases, off balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 was originally effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Company, resulting in a required implementation date for the Company of January 1, 2023. Early adoption will continue to be permitted. The Company is evaluating the impact of this ASU and expects to recognize a one-time adjustment to the allowance for loan losses upon adoption, but we cannot yet determine the magnitude of the one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial condition or results of operation.

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Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale

Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale

Branch Optimization and Operational Efficiency Initiatives

As previously disclosed by the Company on February 23, 2021, May 27, 2021 and June 10, 2021, the Company announced the implementation of branch optimization and operational efficiency strategic initiatives to improve the Bank’s financial performance and operations in order to position the Bank for continued profitable growth. The Bank intends to optimize its current branch network while expanding technology and infrastructure investments in its remaining locations. The decision was the result of a comprehensive internal study that measured branch performance by comparing financial and non-financial indicators to growth opportunities, while evolving changes in consumer preferences, largely driven by the global pandemic, led to an acceleration of branch optimization efforts. 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.

The Bank continues to make progress related to these initiatives through the consolidation of six branches that was completed on June 30, 2021, reducing the Bank's branch network to 16 branches. The Bank is also in the process of implementing operational efficiencies related to individualized processes within its branch network and operating environment. In addition, on June 10, 2021, CB Financial, Community Bank, and Citizens Bank of West Virginia, Inc. (“Citizens Bank”) executed a Purchase and Assumption Agreement (the “Agreement”) pursuant to which Citizens Bank has agreed to purchase certain loans and other assets, and assume certain deposits and other liabilities, of the branch offices of Community Bank located in Buckhannon, West Virginia, and in New Martinsville, West Virginia. The Agreement provides for a 5.0% premium to be paid on assumed deposits, which will be recognized as income upon the expected close of the transaction in the fourth quarter of 2021, subject to regulatory approval and other closing conditions. As of September 30, 2021, all requisite regulatory approvals had been received.

As a result of the events and changes in circumstances associated with the branch optimization initiatives whereby six branches were consolidated and two others are to be divested, the Company performed assessments of the recoverability of long-lived assets to determine whether their carrying values may not be recoverable. Utilizing guidance in ASC 360, the Company performed the three step process to identify, recognize and measure the impairment of the long-lived assets.

•For the six locations that were consolidated:

◦Three locations were written down to the fair value of the land based on the appraised value due to plans to raze the buildings.

◦Two locations are being marketed for sale and were written down to fair value based on appraised value.

◦One location is leased. Refer to Note 11 for further discussion of the impairment of the right of use asset associated with the operating lease.

•For the two branches to be divested, fair value of the premises and equipment was determined based on the contractual terms of the Agreement, which provide that the premises and equipment will be purchased at the Company's net book value, net of a $338,000 contractual discount at the acquisition date.

In total, the Company recognized $2,000 and $2.3 million in charges on the premises and equipment for the three and nine months ended September 30, 2021, respectively, as Writedown on Fixed Assets in the Consolidated Statements of (Loss) Income.

The branch optimization and operational efficiency initiatives resulted in $1.3 million and $6.3 million of restructuring-related and other expenses for the three and nine months ended September 30, 2021, respectively. The expenses include the aforementioned $2.3 million writedown on fixed assets, a $1.2 million impairment of intangible assets associated with the branch sales (refer to Note 14 for further information) for the nine months ended September 30, 2021, as well as $1.3 million and $2.9 million of expenses related to contracted services, employee severance costs, branch lease impairment (refer to Note 11 for further information), professional fees, data processing fees, legal and other expenses for the three and nine months ended September 30, 2021, respectively.

Assets and Liabilities of Branches Held for Sale

At September 30, 2021, the Company reclassified the deposits to be assumed to deposits held for sale, loans to be purchased to loans held for sale and premises and equipment to be purchased to premises and equipment held for sale on the Consolidated Statements of Financial Condition.

The assets and liabilities classified as held for sale of the disposal group related to the branch sales are as follows at September 30, 2021.

	September 30, 2021
(Dollars in thousands)
Loans Held for Sale
Real Estate:
Residential	$	2,290
Commercial	2,911
Commercial and Industrial	592
Consumer	252
Other	453
Total Loans Held for Sale	$	6,498
Premises and Equipment Held for Sale	795
Deposits Held for Sale
Non-Interest Bearing Demand Deposits	$	15,070
Interest Bearing Demand Deposits	31,502
Money Market Accounts	17,578
Savings Accounts	20,803
Time Deposits	17,694
Total Deposits Held for Sale	$	102,647

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Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

There are no convertible securities which would affect the numerator in calculating basic and diluted earnings (loss) per share; therefore, net income (loss) as presented on the Consolidated Statements of Income (Loss) is used as the numerator.

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands, except share and per share data)
Net Income (Loss)	$	1,983	$	(17,395)	$	4,605	$	(13,719)
Weighted-Average Basic Common Shares Outstanding	5,373,032		5,395,342		5,412,989		5,406,710
Dilutive Effect of Common Stock Equivalents (Stock Options and Restricted Stock)	17,096		—		7,803		—
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding	5,390,128		5,395,342		5,420,792		5,406,710
Earnings (Loss) Per Share:
Basic	$	0.37	$	(3.22)	$	0.85	$	(2.54)
Diluted	0.37		(3.22)		0.85		(2.54)

The dilutive effect on weighted average diluted common shares outstanding is the result of outstanding stock options and nonvested restricted stock. The following table presents for the periods indicated (a) options to purchase shares of common stock that were outstanding but not included in the computation of earnings per share because the options’ exercise price was greater than the average market price of the common shares for the period, and (b) shares of restricted stock awards that were not included in the computation of diluted earnings per share because the hypothetical repurchase of shares under the treasury stock method exceeded the weighted average nonvested restricted awards, therefore the effects would be anti-dilutive.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Stock Options	71,741	220,271	199,641	220,271
Restricted Stock	23,000	49,130	32,360	49,130

When there is a net loss for the period, the exercise or conversion of any potential shares increases the number of shares in the denominator and results in a lower loss per share. In that situation, the potential shares are antidilutive and not included in the Company's loss per share calculation. Therefore, if there is a net loss, diluted loss per share is the same as basic loss per share.

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Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The following table presents the amortized cost and fair value of securities available-for-sale at the dates indicated:

	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-Sale Debt Securities:
U.S. Government Agencies	$	50,992	$	—	$	(1,054)	$	49,938
Obligations of States and Political Subdivisions	18,356		1,064		—		19,420
Mortgage-Backed Securities - Government-Sponsored Enterprises	140,255		2,205		(770)		141,690
Corporate Debt	7,482		—		(1)		7,481
Total Available-for-Sale Debt Securities	217,085		3,269		(1,825)		218,529
Equity Securities:
Mutual Funds							999
Other							1,823
Total Equity Securities							2,822
Total Securities							$	221,351

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-Sale Debt Securities:
U.S. Government Agencies	$	41,994	$	12	$	(595)	$	41,411
Obligations of States and Political Subdivisions	20,672		1,321		—		21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises	75,900		3,593		—		79,493
Total Available-for-Sale Debt Securities	138,566		4,926		(595)		142,897
Equity Securities:
Mutual Funds							1,019
Other							1,484
Total Equity Securities							2,503
Total Securities							$	145,400

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at the dates indicated:

	September 30, 2021
	Less than 12 months					12 Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
(Dollars in thousands)
U.S. Government Agencies	7	$	25,759	$	(239)	5	$	24,179	$	(815)	12	$	49,938	$	(1,054)
Mortgage Backed Securities- Government Sponsored Enterprises	10	64,133		(770)		—	—		—		10	64,133		(770)
Corporate Debt	1	4,950		(1)		—	—		—		1	4,950		(1)
Total	18	$	94,842	$	(1,010)	5	$	24,179	$	(815)	23	$	119,021	$	(1,825)

	December 31, 2020
	Less than 12 months					12 Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
(Dollars in thousands)
U.S. Government Agencies	7	$	32,399	$	(595)	—	$	—	$	—	7	$	32,399	$	(595)
Total	7	$	32,399	$	(595)	—	$	—	$	—	7	$	32,399	$	(595)

For debt securities, the Company does not believe that any individual unrealized loss as of September 30, 2021 or December 31, 2020, represents an other-than-temporary impairment. The Company performs a review of the entire securities portfolio on a quarterly basis to identify securities that may indicate an other-than-temporary impairment. The Company’s management considers the length of time and the extent to which the fair value has been less than cost, and the financial condition of the issuer. The securities that are temporarily impaired at September 30, 2021 and December 31, 2020 relate principally to changes in market interest rates subsequent to the acquisition of the specific securities. The Company does not intend to sell, and it is not more likely than not that it will be required to sell any of the securities in an unrealized loss position before recovery of its amortized cost or maturity of the security.

Securities available-for-sale with a fair value of $184.4 million and $119.7 million at September 30, 2021 and December 31, 2020, respectively, are pledged to secure public deposits, short-term borrowings and for other purposes as required or permitted by law.

The following table presents the scheduled maturities of debt securities as of the date indicated:

	September 30, 2021
	Amortized Cost		Fair Value
(Dollars in thousands)
Due in One Year or Less	$	2,583	$	2,620
Due after One Year through Five Years	4,394		4,404
Due after Five Years through Ten Years	70,946		71,437
Due after Ten Years	139,162		140,068
Total	$	217,085	$	218,529

The following table presents the gross realized gain and loss on sales of debt securities, as well as gain and loss on equity securities from both sales and market adjustments for the periods indicated. All gains and losses presented in the table below are reported in net gain on securities on the Consolidated Statements of Income (Loss).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Debt Securities
Gross Realized Gain	$	—	$	—	$	225	$	489
Gross Realized Loss	—		—		—		—
Net Gain on Debt Securities	$	—	$	—	$	225	$	489
Equity Securities
Net Unrealized Gain (Loss) Recognized on Securities Held	$	18	$	(59)	$	251	$	(469)
Net Realized Gain Recognized on Securities Sold	6		—		6		—
Net Gain (Loss) on Equity Securities	$	24	$	(59)	$	257	$	(469)
Net Gain (Loss) on Securities	$	24	$	(59)	$	482	$	20

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Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

The Company’s loan portfolio is segmented to enable management to monitor risk and performance. Real estate loans are further segregated into three classes. Residential mortgages include those secured by residential properties and include home equity loans,. Commercial mortgages consist of loans to commercial borrowers secured by commercial real estate. Construction loans typically consist of loans to build commercial buildings and acquire and develop residential real estate. The commercial and industrial segment consists of loans to finance the activities of commercial customers. The consumer segment consists primarily of indirect auto loans as well as personal installment loans and personal or overdraft lines of credit.

Residential mortgage loans are typically longer-term loans and, therefore, generally present greater interest rate risk than the consumer and commercial loans. Under certain economic conditions, housing values may decline, which may increase the risk that the collateral values are not sufficient.

Commercial real estate loans generally present a higher level of credit risk than loans secured by residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income-producing properties, and the increased difficulty in evaluating and monitoring these types of loans. Furthermore, the repayment of commercial real estate loans is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.

Construction loans are originated to individuals to finance the construction of residential dwellings and are also originated for the construction of commercial properties, including hotels, apartment buildings, housing developments, and owner-occupied properties used for businesses. Construction loans generally provide for the payment of interest only during the construction phase, which is usually 12 to 18 months. At the end of the construction phase, the loan generally converts to a permanent residential or commercial mortgage loan. Construction loan risks include overfunding in comparison to the plans, untimely completion of work, and leasing and stabilization after project completion.

Commercial and industrial loans are generally secured by business assets, inventories, accounts receivable, etc., which present collateral risk.

Consumer loans generally have higher interest rates and shorter terms than residential mortgage loans; however, they have additional credit risk due to the type of collateral securing the loan.

The following table presents the classifications of loans as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Percent		Amount		Percent
(Dollars in thousands)
Real Estate:
Residential	$	317,373	31.7	%	$	344,142	32.9	%
Commercial	379,621		37.9		373,555		35.9
Construction	78,075		7.8		72,600		6.9
Commercial and Industrial	102,360		10.2		126,813		12.1
Consumer	112,087		11.2		113,854		10.9
Other	12,083		1.2		13,789		1.3
Total Loans	1,001,599		100.0	%	1,044,753		100.0	%
Allowance for Loan Losses	(11,581)				(12,771)
Loans, Net	$	990,018			$	1,031,982

The Small Business Administration reopened the Payroll Protection Program ("PPP") the week of January 11, 2021 accepting applications for both First Draw and Second Draw PPP Loans. As of September 30, 2021, as part of this round of PPP, the Bank funded 218 PPP loans totaling $34.6 million with net deferred origination fees of $1.3 million.

PPP loans decreased $22.4 million to $32.7 million at September 30, 2021 compared to $55.1 million at December 31, 2020. At September 30, 2021, the largest sectors of PPP loans were $9.3 million for construction and specialty-trade contractors, $5.9 million in loans for health care and social assistance, $4.7 million for professional and technical services, $2.5 million for manufacturing, $3.5 million for restaurant and food services, and $1.8 million for wholesale trade.

Net unamortized PPP loan origination fees as of September 30, 2021 and December 31, 2020 were $1.0 million and $1.1 million, respectively. Net PPP loan origination fees earned were $380,000 and $1.4 million for the three and nine months ended September 30, 2021, respectively. All PPP loans are classified as commercial and industrial loans held for investment. No allowance for loan loss was allocated to the PPP loan portfolio due to the Bank complying with the lender obligations that ensure SBA guarantee.

Total unamortized net deferred loan fees were $2.1 million and $2.0 million at September 30, 2021 and December 31, 2020, respectively.

The following table presents classification of loans held for sale as of September 30, 2021. Loans held for sale includes $6.5 million related to the Agreement executed with Citizens Bank and $7.4 million of residential real estate loans originated and intended for sale in the secondary market. In addition, a $3.6 million nonaccrual and substandard-rated commercial real estate loan secured by a hotel that was transferred into the held for sale portfolio at September 30, 2021 was sold in October 2021 and

will result in the recognition of an $897,000 gain on sale of loans in the fourth quarter of 2021. This loan previously incurred a $931,000 charge-off in the prior year. There were no loans held for sale at December 31, 2020.

	September 30 2021
(Dollars in thousands)
Real Estate:
Residential	$	9,640
Commercial	6,470
Construction	—
Commercial and Industrial	592
Consumer	252
Other	453
Total Loans Held for Sale	$	17,407

The Company uses an eight-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first four categories are not considered criticized and are aggregated as “pass” rated. The criticized rating categories used by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are below average quality, resulting in an undue credit risk, but not to the point of justifying a substandard classification. Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans classified as doubtful have all the weaknesses inherent in loans classified as substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as loss are considered uncollectable and of such little value that continuance as an asset is not warranted.

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At September 30, 2021 and December 31, 2020, there were no loans in the criticized category of Loss within the internal risk rating system.

	September 30, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
(Dollars in Thousands)
Real Estate:
Residential	$	314,266	$	869	$	2,238	$	—	$	317,373
Commercial	339,193		28,018		12,410		—		379,621
Construction	66,649		10,785		641		—		78,075
Commercial and Industrial	87,901		12,410		1,513		536		102,360
Consumer	112,017		—		70		—		112,087
Other	12,012		71		—		—		12,083
Total Loans	$	932,038	$	52,153	$	16,872	$	536	$	1,001,599

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
(Dollars in Thousands)
Real Estate:
Residential	$	340,573	$	1,115	$	2,454	$	—	$	344,142
Commercial	320,358		37,482		15,715		—		373,555
Construction	68,343		53		4,204		—		72,600
Commercial and Industrial	113,797		7,787		4,620		609		126,813
Consumer	113,805		—		49		—		113,854
Other	13,711		78		—		—		13,789
Total Loans	$	970,587	$	46,515	$	27,042	$	609	$	1,044,753

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	September 30, 2021
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
(Dollars in Thousands)
Real Estate:
Residential	$	315,124	$	613	$	—	$	—	$	613	$	1,636	$	317,373
Commercial	374,315		—		—		—		—		5,306		379,621
Construction	78,075		—		—		—		—		—		78,075
Commercial and Industrial	100,817		—		—		—		—		1,543		102,360
Consumer	111,515		484		18		—		502		70		112,087
Other	12,083		—		—		—		—		—		12,083
Total Loans	$	991,929	$	1,097	$	18	$	—	$	1,115	$	8,555	$	1,001,599

	December 31, 2020
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
(Dollars in Thousands)
Real Estate:
Residential	$	339,067	$	2,919	$	315	$	—	$	3,234	$	1,841	$	344,142
Commercial	365,712		1		740		—		741		7,102		373,555
Construction	72,600		—		—		—		—		—		72,600
Commercial and Industrial	124,916		—		—		—		—		1,897		126,813
Consumer	112,952		784		61		8		853		49		113,854
Other	13,789		—		—		—		—		—		13,789
Total Loans	$	1,029,036	$	3,704	$	1,116	$	8	$	4,828	$	10,889	$	1,044,753

The decrease in nonaccrual loans at September 30, 2021 compared to December 31, 2020 is primarily related to a $3.6 million commercial real estate loan secured by a hotel that was transferred to loans held-for-sale as previously noted, partially offset by a $2.0 million commercial real estate loan secured by a hotel that was moved to nonaccrual status in the current period.

Additional interest income that would have been recorded if the loans that were nonaccrual at September 30, 2021 were current was $33,000 and $136,000 for the three and nine months ended September 30, 2021, respectively, and $20,000 and $59,000 for the three and nine months ended September 30, 2020, respectively.

The following table sets forth the amounts and categories of nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section. Nonperforming loans do not include loans modified under Section 4013 of the CARES Act and interagency guidance as further explained below.

	September 30, 2021			December 31, 2020
(Dollars in Thousands)
Nonaccrual Loans:
Real Estate:
Residential	$	1,636		$	1,841
Commercial	5,306			7,102
Construction	—			—
Commercial and Industrial	1,543			1,897
Consumer	70			49
Total Nonaccrual Loans	8,555			10,889
Accruing Loans Past Due 90 Days or More:
Consumer	—			8
Total Accruing Loans Past Due 90 Days or More	—			8
Total Nonaccrual Loans and Accruing Loans Past Due 90 Days or More	8,555			10,897
Troubled Debt Restructurings, Accruing:
Real Estate
Residential	622			650
Commercial	1,713			2,861
Commercial and Industrial	17			80
Total Troubled Debt Restructurings, Accruing	2,352			3,591
Total Nonperforming Loans	10,907			14,488
Other Real Estate Owned:
Residential	36			—
Commercial	—			208
Total Other Real Estate Owned	36			208
Total Nonperforming Assets	$	10,943		$	14,696
Nonperforming Loans to Total Loans	1.09		%	1.39		%
Nonperforming Assets to Total Assets	0.74			1.04

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to applicable requirements of the local jurisdiction was $775,000 and $806,000 at September 30, 2021 and December 31, 2020, respectively.

TDRs typically are the result of loss mitigation activities whereby concessions are granted to minimize loss and avoid foreclosure or repossession of collateral. For a loan modification to be considered a TDR, the borrower must be experiencing financial difficulty and a concession must be granted, except for an insignificant delay in payment. Section 4013 of the CARES Act and regulatory guidance promulgated by federal banking regulators provide temporary relief from accounting and financial reporting requirements for TDRs regarding certain short-term loan modifications related to COVID-19. Specifically, the CARES Act provides that the Bank may elect to suspend the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and suspend any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. Any modification involving a loan that was not more than 30 days past due as of December 31, 2019 and that occurs beginning on March 1, 2020 and ends on the earlier of January 1, 2022 (as extended by the Consolidated Appropriations Act, 2021) or the date that is 60 days after the termination date of the national emergency related to

the COVID-19 outbreak qualify for this exception, including a forbearance arrangement, interest rate modification, repayment plan or any other similar arrangement that defers or delays the payment of principal or interest.

Bank regulatory agencies released an interagency statement that offers practical expedients for modifications that occur in response to the COVID-19 pandemic, but it differs with the CARES Act in certain areas. The expedients require a lender to conclude that a borrower is not experiencing financial difficulty if either short-term (e.g., six months or less) modifications are made, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented or the modification or deferral program is mandated by the federal government or a state government. The bank regulatory agencies have subsequently confirmed that their guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act. Both Section 4013 of the CARES Act and the interagency statement can be applied to a second modification that occurs after the first modification provided that the second modification does not qualify as a TDR under Section 4013 of the CARES Act or the interagency statement.

The Bank offered forbearance options for borrowers impacted by COVID-19 that provide a short-term delay in payment by primarily allowing: (a) deferral of three to six months of payments; or (b) for consumer loans not secured by a real estate mortgage, three months of interest-only payments that also extends the maturity date of the loan by three months. During the forbearance period, the borrower is not considered delinquent for credit bureau reporting purposes. The Company has elected the practical expedients related to TDRs that are available in the CARES Act and interagency guidance as an entity-wide accounting policy and does not consider any of the forbearance agreements TDRs, delinquent, or nonaccrual.

The following table provides details of loans in forbearance as of the dates indicated.

	September 30, 2021					December 31, 2020
	Number of Loans	Amount		% of Portfolio		Number of Loans	Amount		% of Portfolio
(Dollars in thousands)
Real Estate:
Residential	—	$	—	—	%	4	$	749	0.2	%
Commercial	—	—		—	%	8	19,818		5.3	%
Construction	—	—		—	%	1	1,958		2.7	%
Commercial and Industrial	—	—		—	%	5	1,219		1.0	%
Consumer	—	—		—	%	13	356		0.3	%
Total Loans in Forbearance	—	$	—	—	%	31	$	24,100	2.3	%

The concessions granted for the TDRs in the portfolio primarily consist of, but are not limited to, modification of payment or other terms, temporary rate modification and extension of maturity date. Loans classified as TDRs consisted of 14 loans totaling $2.9 million at September 30, 2021 and 17 loans totaling $4.2 million at December 31, 2020, respectively.

The following table presents information at the time of modification related to loans modified in a TDR during the periods indicated. During the three and nine months ended September 30, 2021, there were no loans that were modified that were considered a TDR.

	Three Months Ended September 30, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
(Dollars in thousands)
Real Estate:
Commercial	1	$	504	$	519	$	—
Commercial and Industrial	1	38		38		—
Total	2	$	542	557		$	—

	Nine Months Ended September 30, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
(Dollars in thousands)
Real Estate:
Residential	1	$	234	$	234	$	—
Commercial	1	504		519		—
Commercial and Industrial	1	38		38		—
Total	3	$	776	$	791	$	—

During the three months ended September 30, 2021, no loans that were previously modified in a TDR paid off in full. During the nine months ended September 30, 2021, one residential real estate loan totaling $3,000, one commercial real estate loan totaling $698,000 and one commercial and industrial loan totaling $8,000 previously modified in a TDR paid off in full. During the three months ended September 30, 2020, no loans previously modified in a TDR paid off in full. During the nine months ended September 30, 2020, one residential real estate loan totaling $60,000 previously modified in a TDR paid off in full

No TDRs subsequently defaulted during the three and nine months ended September 30, 2021 and 2020, respectively.

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	September 30, 2021
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential	$	1,146	$	—	$	1,150	$	1,165	$	35
Commercial	13,100		—		13,315		13,361		235
Construction	641		—		641		641		16
Commercial and Industrial	2,066		—		2,351		2,922		24
Total With No Related Allowance Recorded	$	16,953	$	—	$	17,457	$	18,089	$	310
With A Related Allowance Recorded:
Real Estate:
Residential	$	—	$	—	$	—	$	—	$	—
Commercial	272		199		272		473		16
Construction	—		—		—		—		—
Commercial and Industrial	—		—		—		—		—
Total With A Related Allowance Recorded	$	272	$	199	$	272	$	473	$	16
Total Impaired Loans:
Real Estate:
Residential	$	1,146	$	—	$	1,150	$	1,165	$	35
Commercial	13,372		199		13,587		13,834		251
Construction	641		—		641		641		16
Commercial and Industrial	2,066		—		2,351		2,922		24
Total Impaired Loans	$	17,225	$	199	$	17,729	$	18,562	$	326

	December 31, 2020
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential	$	1,183	$	—	$	1,187	$	1,194	$	46
Commercial	31,865		—		32,887		37,443		1,418
Construction	4,204		—		4,204		4,013		159
Commercial and Industrial	3,296		—		3,506		3,426		89
Total With No Related Allowance Recorded	$	40,548	$	—	$	41,784	$	46,076	$	1,712
With A Related Allowance Recorded:
Real Estate:
Residential	$	—	$	—	$	—	$	—	$	—
Commercial	1,524		293		1,524		1,585		72
Construction	—		—		—		—		—
Commercial and Industrial	2,069		356		2,069		2,114		57
Total With A Related Allowance Recorded	$	3,593	$	649	$	3,593	$	3,699	$	129
Total Impaired Loans
Real Estate:
Residential	$	1,183	$	—	$	1,187	$	1,194	$	46
Commercial	33,389		293		34,411		39,028		1,490
Construction	4,204		—		4,204		4,013		159
Commercial and Industrial	5,365		356		5,575		5,540		146
Total Impaired Loans	$	44,141	$	649	$	45,377	$	49,775	$	1,841

The recorded investment of loans evaluated for impairment decreased $26.9 million at September 30, 2021 compared to December 31, 2020 and was primarily related to commercial real estate loans. This is primarily the result of no longer evaluating separately for impairment certain commercial real estate loans secured by hotels that have manageable loan-to-value ratios and have exhibited an ability to cash flow during the COVID-19 pandemic, with the expectation that hotel operations strengthen further as occupancy rates increase due to the economy reopening and resumption of travel. In addition, as previously noted, a $3.6 million commercial real estate loan was transferred into loans held for sale and was no longer evaluated for impairment at September 30, 2021. The loan was subsequently sold in October 2021.

The following tables present the activity in the allowance for loan losses summarized by primary segments and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment at the dates and for the periods indicated.

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
June 30, 2021	$	1,588	$	5,582	$	1,136	$	1,152	$	941	$	—	$	1,145	$	11,544
Charge-offs	—		—		—		—		(19)		—		—		(19)
Recoveries	2		—		—		11		43		—		—		56
Provision (Recovery)	(98)		347		(71)		(21)		(12)		—		(145)		—
September 30, 2021	$	1,492	$	5,929	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,581

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
December 31, 2020	$	2,249	$	6,010	$	889	$	1,423	$	1,283	$	—	$	917	$	12,771
Charge-offs	—		—		—		—		(139)		—		—		(139)
Recoveries	15		—		—		33		101		—		—		149
Provision (Recovery)	(772)		(81)		176		(314)		(292)		—		83		(1,200)
September 30, 2021	$	1,492	$	5,929	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,581

	September 30, 2021
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	199	$	—	$	—	$	—	$	—	$	—	$	199
Collectively Evaluated for Potential Impairment	$	1,492	$	5,730	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,382

	December 31, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	293	$	—	$	356	$	—	$	—	$	—	$	649
Collectively Evaluated for Potential Impairment	$	2,249	$	5,717	$	889	$	1,067	$	1,283	$	—	$	917	$	12,122

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
June 30, 2020	$	2,688	$	5,160	$	820	$	1,566	$	1,714	$	—	$	700	$	12,648
Charge-offs	(11)		—		—		—		(103)		—		—		(114)
Recoveries	1		1		—		6		38		—		—		46
Provision (Recovery)	(506)		1,711		71		170		(290)		—		44		1,200
September 30, 2020	$	2,172	$	6,872	$	891	$	1,742	$	1,359	$	—	$	744	$	13,780

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
December 31, 2019	$	2,023	$	3,210	$	285	$	2,412	$	1,417	$	—	$	520	$	9,867
Charge-offs	(36)		—		—		—		(239)		—		—		(275)
Recoveries	5		28		—		21		134		—		—		188
Provision (Recovery)	180		3,634		606		(691)		47		—		224		4,000
September 30, 2020	$	2,172	$	6,872	$	891	$	1,742	$	1,359	$	—	$	744	$	13,780

	September 30, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	2,248	$	—	$	607	$	—	$	—	$	—	$	2,855
Collectively Evaluated for Potential Impairment	$	2,172	$	4,624	$	891	$	1,135	$	1,359	$	—	$	744	$	10,925

The allowance for loan losses was $11.6 million at September 30, 2021 compared to $12.8 million at December 31, 2020. There was a net recovery of $1.2 million of provision for loan losses for the nine months ended September 30, 2021. A $20.8 million decrease in net reservable loans in the current year, which excludes PPP loans and includes the reclassification of $17.4 million of loans to held for sale that do not require a reserve, as well as a decrease in specifically impaired loans and improving economic and industry conditions, contributed to the net recovery in the current period.

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated. At September 30, 2021 and December 31, 2020, commercial and industrial loans include $32.7 million and $55.1 million, respectively, of PPP loans collectively evaluated for potential impairment. No allowance for loan loss was allocated to the PPP loan portfolio due to the Bank complying with the lender obligations that ensure SBA guarantee.

	September 30, 2021
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	1,146	$	13,372	$	641	$	2,066	$	—	$	—	$	17,225
Collectively Evaluated for Potential Impairment	316,227		366,249		77,434		100,294		112,087		12,083		984,374
Total Loans	$	317,373	$	379,621	$	78,075	$	102,360	$	112,087	$	12,083	$	1,001,599

	December 31, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	1,183	$	33,389	$	4,204	$	5,365	$	—	$	—	$	44,141
Collectively Evaluated for Potential Impairment	342,959		340,166		68,396		121,448		113,854		13,789		1,000,612
Total Loans	$	344,142	$	373,555	$	72,600	$	126,813	$	113,854	$	13,789	$	1,044,753

The following table presents changes in the accretable discount on the loans acquired at fair value at the dates indicated.

	Accretable Discount
(Dollars in Thousands)
December 31, 2020	$	1,194
Accretable Yield	(385)
September 30, 2021	$	809

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Time Deposits

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Time Deposits

Time Deposits

The following table shows the maturities of time deposits for the next five years and beyond at the date indicated.

September 30, 2021	Time Deposits		Time Deposits Held for Sale		Time Deposits, Net
(Dollars in thousands)
One Year or Less	$	68,228	$	8,560	$	59,668
Over One Through Two Years	58,693		4,346		54,347
Over Two Through Three Years	10,758		1,034		9,724
Over Three Through Four Years	11,362		2,415		8,947
Over Four Through Five Years	9,645		1,143		8,502
Over Five Years	3,735		196		3,539
Total	$	162,421	$	17,694	$	144,727

The balance in time deposits, including time deposits held for sale, that meet or exceed the FDIC insurance limit of $250,000 totaled $49.1 million and $59.2 million as of September 30, 2021 and December 31, 2020, respectively.

The aggregate amount of demand deposits, including demand deposits held for sale, that are overdrawn and have been reclassified as loans was $176,000 and $231,000 as of September 30, 2021 and December 31, 2020, respectively.

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Short-Term Borrowings

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term BorrowingsBorrowings with original maturities of one year or less are classified as short-term and may consist of borrowings with the Federal Home Loan Bank ("FHLB"), securities sold under agreements to repurchase or borrowings on revolving lines of credit with the Federal Reserve Bank or other correspondent banks. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are overnight sweep accounts with next-day maturities utilized by commercial customers to earn interest on their funds. Securities are pledged as collateral under these agreements in an amount at least equal to the outstanding balance and the collateral pledging requirements are monitored on a daily basis. $10.7 million of securities sold under agreements to repurchase are reported as deposits held for sale at September 30, 2021 because the associated deposits will be sold as part of the Agreement with Citizens Bank. See Note 2 for further information.

The following table sets forth the components of short-term borrowings as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(Dollars in thousands)
Securities Sold Under Agreements to Repurchase:
Balance at Period End	$	42,623	0.16	%	$	41,055	0.21	%
Average Balance Outstanding During the Period	43,745		0.22		37,819		0.36
Maximum Amount Outstanding at any Month End	52,777				46,123
Securities Collaterizing the Agreements at Period-End:
Carrying Value	56,351				46,312
Market Value	56,412				47,283

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Other Borrowed Funds

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Other Borrowed Funds

Other Borrowed Funds

Other borrowed funds consist of fixed rate advances from the FHLB. The following table sets forth the scheduled maturities of other borrowed funds at the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(Dollars in thousands)
Due in One Year	$	3,000	2.23	%	$	2,000	2.12	%
Due After One Year to Two Years	3,000		2.41		3,000		2.23
Due After Two Years to Three Years	—		—		3,000		2.41
Total	$	6,000	2.32	%	$	8,000	2.27	%

As of September 30, 2021, the Bank maintained a credit arrangement with a maximum borrowing limit of approximately $420.4 million with the FHLB and available borrowing capacity of $351.3 million. This arrangement is subject to annual renewal, incurs no service charge, and is secured by a blanket security agreement on $564.1 million of residential and commercial mortgage loans and the Bank’s investment in FHLB stock. Under this arrangement, the Bank had available a variable rate Line of Credit in the amount of $150.0 million as of September 30, 2021, of which there was no outstanding balance.

As an alternative to pledging securities, the FHLB periodically provides standby letters of credit on behalf of the Bank to secure certain public deposits in excess of the level insured by the FDIC. If the FHLB is required to make payment for a beneficiary’s draw, the payment amount is converted into a collateralized advance to the Bank. Standby letters of credit issued on our behalf by the FHLB to secure public deposits were $60.6 million and $90.3 million as of September 30, 2021 and December 31, 2020, respectively.

At September 30, 2021, the Bank maintained a Borrower-In-Custody of Collateral line of credit agreement with the Federal Reserve Bank (“FRB”) for $82.8 million that requires monthly certification of collateral, is subject to annual renewal, incurs no service charge and is secured by $124.9 million of commercial and industrial and consumer indirect auto loans. In addition, the Bank also maintains multiple line of credit arrangements with various unaffiliated banks totaling $50.0 million of which no draws had been taken.

At September 30, 2021 and December 31, 2020, CB Financial did not maintain any credit facilities.

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Fair Value Disclosure

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Disclosure

Fair Value DisclosureFASB ASC 820 “Fair Value Measurement” defines fair value and provides the framework for measuring fair value and required disclosures about fair value measurements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the transaction date. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in valuation methods to determine fair value.

The three levels of fair value hierarchy are as follows:

Level 1 –    Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.

Level 2 –    Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets, and other observable inputs.

Level 3 –    Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in Level 3 classification include option pricing models, discounted cash flows, and other similar techniques.

This hierarchy requires the use of observable market data when available. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statements of Financial Condition as of the dates indicated, by level within the fair value hierarchy. The majority of the Company’s securities are included in Level 2 of the fair value hierarchy. Fair values for Level 2 securities were primarily determined by a third-party pricing service using both quoted prices for similar assets, when available, and model-based valuation techniques that derive fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. The standard inputs that are normally used include benchmark yields of like securities, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. There were no transfers into or out of Level 3 during the nine months ended September 30, 2021 or year ended December 31, 2020.

	Fair Value Hierarchy	September 30 2021		December 31 2020
(Dollars in thousands)
Securities:
Available-for-Sale Debt Securities
U.S. Government Agencies	Level 2	$	49,938	$	41,411
Obligations of States and Political Subdivisions	Level 2	19,420		21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises	Level 2	141,690		79,493
Corporate Debt	Level 2	7,481		—
Total Available-for-Sale Debt Securities		218,529		142,897
Equity Securities
Mutual Funds	Level 1	999		1,019
Other	Level 1	1,823		1,484
Total Equity Securities		2,822		2,503
Total Securities		$	221,351	$	145,400

The following table presents the financial assets on the Consolidated Statements of Financial Condition measured at fair value on a nonrecurring basis as of the dates indicated by level within the fair value hierarchy for only those nonrecurring assets that had a fair value below the carrying amount. The table also presents the significant unobservable inputs used in the fair value measurements.

Financial Asset	Fair Value Hierarchy	September 30, 2021		Valuation Techniques	Significant Unobservable Inputs	Range					Weighted Average
(Dollars in thousands)
Impaired Loans Individually Assessed	Level 3	$	73	Appraisal of Collateral (1)	Appraisal Adjustments (2)	0	%	to	50	%	50.0%
Mortgage Servicing Rights	Level 3	733		Discounted Cash Flow	Discount Rate	9	%	to	11	%	10.1%
					Prepayment Speed	10	%	to	29	%	19.9%

Financial Asset	Fair Value Hierarchy	December 31, 2020		Valuation Techniques	Significant Unobservable Inputs	Range					Weighted Average
(Dollars in thousands)
Impaired Loans Individually Assessed	Level 3	$	2,944	Appraisal of Collateral (1)	Appraisal Adjustments (2)	0	%	to	50	%	—
Mortgage Servicing Rights	Level 3	656		Discounted Cash Flow	Discount Rate	9	%	to	11	%	10.0%
					Prepayment Speed	12	%	to	27	%	18.7%
OREO	Level 3	34		Appraisal of Collateral (1)	Liquidation Expenses (2)	10	%	to	30	%	—

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include various Level 3 inputs, which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal.

Impaired loans are evaluated when a loan is identified as impaired and valued at the lower of cost or fair value at that time. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Fair value is measured based on the value of the collateral securing these loans and is classified as Level 3 in the fair value hierarchy. At September 30, 2021 and December 31, 2020, the fair value of impaired loans consists of the loan balances of $272,000 and $3.6 million, respectively, less their specific valuation allowances of $199,000 and $649,000, respectively.

The fair value of mortgage servicing rights ("MSRs") is determined by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs. MSRs are considered impaired if the carrying value exceeds fair value. Since the valuation model includes significant unobservable inputs as listed above, MSRs are classified as Level 3. MSRs are reported in Other Assets in the Consolidated Statements of Financial Condition and are amortized into mortgage servicing income in Other Income in the Consolidated Statements of (Loss) Income.

OREO properties are evaluated at the time of acquisition and recorded at fair value, less estimated selling costs. After acquisition, OREO is recorded at the lower of cost or fair value, less estimated selling costs. The fair value of an OREO property is determined from a qualified independent appraisal and is classified as Level 3 in the fair value hierarchy.

Financial instruments are defined as cash, evidence of an ownership in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses and other factors, as determined through various option pricing formulas or simulation modeling. As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated fair values are based may have significant impact on the resulting estimated fair values.

As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company.

The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.

		September 30, 2021				December 31, 2020
	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
(Dollars in thousands)
Financial Assets:
Cash and Due From Banks:
Interest Bearing	Level 1	$	131,835	$	131,835	$	145,636	$	145,636
Non-Interest Bearing	Level 1	41,688		41,688		15,275		15,275
Securities	See Above	221,351		221,351		145,400		145,400
Loans Held for Sale	Level 2	17,407		18,304		—		—
Loans, Net	Level 3	990,018		1,022,160		1,031,982		1,073,633
Property and Equipment Held for Sale	Level 2	795		795		—		—
Restricted Stock	Level 2	3,451		3,451		3,984		3,984
Mortgage Servicing Rights	Level 3	733		733		656		656
Accrued Interest Receivable	Level 2	3,355		3,355		3,872		3,872
Financial Liabilities:
Deposits Held for Sale	Level 2	102,647		107,779		—		—
Deposits	Level 2	1,185,156		1,186,603		1,224,569		1,231,606
Short-Term Borrowings	Level 2	42,623		42,623		41,055		41,055
Other Borrowed Funds	Level 2	6,000		6,058		8,000		8,067
Accrued Interest Payable	Level 2	490		490		767		767

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Commitments and Contingent Liabilities

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business primarily to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and performance letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and performance letters of credit written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Commitments and conditional obligations are evaluated the same as on-balance-sheet instruments but do not have a corresponding reserve recorded. The Company’s opinion on not implementing a corresponding reserve for off-balance-sheet instruments is supported by historical factors of no losses recorded due to these items. The Company is continually evaluating these items for credit quality and any future need for the corresponding reserve.

The following table presents the unused and available credit balances of financial instruments whose contracts represent credit risk at the dates indicated.

	September 30, 2021		December 31, 2020
(Dollars in thousands)
Standby Letters of Credit	$	110	$	120
Performance Letters of Credit	2,764		2,947
Construction Mortgages	56,809		60,312
Personal Lines of Credit	7,132		6,930
Overdraft Protection Lines	5,895		6,287
Home Equity Lines of Credit	22,797		22,110
Commercial Lines of Credit	74,127		69,738
Total Commitments	$	169,634	$	168,444

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Performance letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance-related contracts. The coverage period for these instruments is typically a one-year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the letter. For secured letters of credit, the collateral is typically Company deposit instruments or customer business assets.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

The Company evaluates contracts at commencement to determine if a lease is present. The Company’s lease contracts are all classified as operating leases and create operating right-of-use (“ROU”) assets and corresponding lease liabilities on the Consolidated Statements of Financial Condition. The leases are primarily ROU assets of land and building for branch and loan production locations. ROU assets are reported in Accrued Interest Receivable and Other Assets and the related lease liabilities in Accrued Interest Payable and Other Liabilities on the Consolidated Statements of Financial Condition.

The following tables present the lease expense, ROU assets, weighted average term, discount rate and maturity analysis of lease liabilities for operating leases for the periods and dates indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Operating Lease Expense	$	74	$	118	$	257	$	353
Short-Term Lease Expense	8		—		25		—
Variable Lease Expense	8		10		24		28
Total Lease Expense	$	90	$	128	$	306	$	381

	September 30, 2021			December 31, 2020
(Dollars in thousands)
Operating Leases:
ROU Assets	$	741		$	1,206
Weighted Average Lease Term in Years	7.16			6.95
Weighted Average Discount Rate	2.47		%	2.39		%

	September 30, 2021
(Dollars in thousands)
Maturity Analysis:
Due in One Year	$	309
Due After One Year to Two Years	178
Due After Two Years to Three Years	113
Due After Three Years to Four Years	90
Due After Four to Five Years	45
Due After Five Years	330
Total	$	1,065
Less: Present Value Discount	106
Lease Liabilities	$	959

Impairment of ROU Assets

ROU assets from operating leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, and are reviewed for impairment when indicators of impairment are present. ASC 360 requires three steps to identify, recognize and measure impairment. If indicators of impairment are present (Step 1), the Company performs a recoverability test (Step 2) comparing the sum of the estimated undiscounted cash flows attributable to the ROU asset in question to the carrying amount. If the undiscounted cash flows used in the recoverability test are less than the carrying amount, the Company estimates the fair value of the ROU asset and recognizes an impairment loss when the carrying amount exceeds the estimated fair value (Step 3).

At June 30, 2021, the Company consolidated six branches as part of its branch optimization initiative. One of the branches was leased and the Company performed the three-step evaluation as outlined above to determine whether the operating lease was impaired. As part of the recoverability test, the Company elected to exclude operating lease liabilities from the carrying amount of the asset group. The undiscounted future cash flows used in the recoverability test were based on assumptions made by the Company rather than market participant assumptions. Since an election was made to exclude operating lease liabilities from the asset or asset group, all future cash lease payments for the lease were also excluded. In addition, the Company elected to exclude operating lease liabilities from the estimated fair value, consistent with the recoverability test When determining the fair value of the ROU asset, the Company estimated what market participants would pay to lease the asset. The ROU asset was valued assuming its highest and best use in its current form.

Based on the analysis, the Company concluded that the ROU asset for this branch was fully impaired as of June 30, 2021, resulting in a remaining ROU carrying value of zero and the recognition of a $227,000 impairment for the nine months ended September 30, 2021. The impairment was recognized in Occupancy expense on the Consolidated Statements of Income (Loss).

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Other Noninterest Expense

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

Other Noninterest Expense

Other Noninterest Expense

The details of other noninterest expense for the Company’s Consolidated Statements of (Loss) Income for the periods indicated are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Non-Employee Compensation	$	184	$	155	$	473	$	449
Printing and Supplies	55		125		218		365
Postage	86		61		265		176
Telephone	145		108		472		408
Charitable Contributions	45		32		80		98
Dues and Subscriptions	33		36		121		153
Loan Expenses	86		149		288		420
Meals and Entertainment	31		—		91		74
Travel	27		13		77		87
Training	5		10		29		24
Bank Assessment	46		44		134		132
Insurance	54		59		173		173
Miscellaneous	106		127		409		418
Total Other Noninterest Expense	$	903	$	919	$	2,830	$	2,977

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Segment and Related Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related InformationAt September 30, 2021, the Company’s business activities were comprised of two operating segments, which are community banking and insurance brokerage services. CB Financial is the parent company of the Bank and Exchange Underwriters, a wholly owned subsidiary of the Bank. Exchange Underwriters has an independent board of directors from the Company and is managed separately from the banking and related financial services that the Company offers. Exchange Underwriters is an independent insurance agency that offers property, casualty, commercial liability, surety and other insurance products.

The following is a table of selected financial data for the Company’s subsidiaries and consolidated results at the dates and for the periods indicated.

	Community Bank		Exchange Underwriters, Inc.		CB Financial Services, Inc.		Net Eliminations		Consolidated
(Dollars in thousands)
September 30, 2021
Assets	$	1,474,626	$	4,656	$	130,994	$	(135,458)	$	1,474,818
Liabilities	1,352,005		1,672		7		(9,853)		1,343,831
Stockholders' Equity	122,621		2,984		130,987		(125,605)		130,987
December 31, 2020
Assets	$	1,416,132	$	5,379	$	134,546	$	(139,337)	$	1,416,720
Liabilities	1,287,148		2,325		16		(7,299)		1,282,190
Stockholders' Equity	128,984		3,054		134,530		(132,038)		134,530
Three Months Ended September 30, 2021
Interest and Dividend Income	$	10,768	$	1	$	1,311	$	(1,294)	$	10,786
Interest Expense	776		—		—		—		776
Net Interest and Dividend Income	9,992		1		1,311		(1,294)		10,010
Provision for Loan Losses	—		—		—		—		—
Net Interest and Dividend Income After Provision for Loan Losses	9,992		1		1,311		(1,294)		10,010
Noninterest Income	975		1,195		28		—		2,198
Noninterest Expense	8,750		1,020		3		—		9,773
Undistributed Net Income of Subsidiary	124		—		654		(778)		—
Income Before Income Tax Expense	2,341		176		1,990		(2,072)		2,435
Income Tax Expense	393		52		7		—		452
Net Income	$	1,948	$	124	$	1,983	$	(2,072)	$	1,983
Nine Months Ended September 30, 2021
Interest and Dividend Income	$	32,536	$	4	$	8,456	$	(8,402)	$	32,594
Interest Expense	2,673		—		—		—		2,673
Net Interest and Dividend Income	29,863		4		8,456		(8,402)		29,921
(Recovery) Provision for Loan Losses	(1,200)		—		—		—		(1,200)
Net Interest and Dividend Income After (Recovery) Provision for Loan Losses	31,063		4		8,456		(8,402)		31,121
Noninterest Income	3,319		3,995		277		—		7,591
Noninterest Expense	29,898		2,983		9		—		32,890
Undistributed Net Income (Loss) of Subsidiary	710		—		(4,096)		3,386		—
Income Before Income Tax Expense	5,194		1,016		4,628		(5,016)		5,822
Income Tax Expense	888		306		23		—		1,217
Net Income	$	4,306	$	710	$	4,605	$	(5,016)	$	4,605

	Community Bank		Exchange Underwriters, Inc.		CB Financial Services, Inc.		Net Eliminations		Consolidated
(Dollars in thousands)
Three Months Ended September 30, 2020
Interest and Dividend Income	$	11,639	$	1	$	1,310	$	(1,294)	$	11,656
Interest Expense	1,240		—		—		—		1,240
Net Interest and Dividend Income	10,399		1		1,310		(1,294)		10,416
Provision for Loan Losses	1,200		—		—		—		1,200
Net Interest and Dividend Income After Provision for Loan Losses	9,199		1		1,310		(1,294)		9,216
Noninterest Income	1,208		1,024		(59)		—		2,173
Noninterest Expense	28,046		919		3		—		28,968
Undistributed Net Income (Loss) of Subsidiary	73		—		(18,694)		18,621		—
(Loss) Income Before Income Tax (Benefit) Expense	(17,566)		106		(17,446)		17,327		(17,579)
Income Tax (Benefit) Expense	(166)		33		(51)		—		(184)
Net (Loss) Income	$	(17,400)	$	73	$	(17,395)	$	17,327	$	(17,395)
Nine Months Ended September 30, 2020
Interest and Dividend Income	$	35,664	$	3	$	2,634	$	(2,589)	$	35,712
Interest Expense	4,442		—		—		—		4,442
Net Interest and Dividend Income	31,222		3		2,634		(2,589)		31,270
Provision for Loan Losses	4,000		—		—		—		4,000
Net Interest and Dividend Income After Provision for Loan Losses	27,222		3		2,634		(2,589)		27,270
Noninterest Income (Loss)	3,760		3,426		(493)		—		6,693
Noninterest Expense	44,227		2,806		9		—		47,042
Undistributed Net Income (Loss) of Subsidiary	433		—		(15,991)		15,558		—
(Loss) Income Before Income Tax Expense (Benefit)	(12,812)		623		(13,859)		12,969		(13,079)
Income Tax Expense (Benefit)	590		190		(140)		—		640
Net (Loss) Income	$	(13,402)	$	433	$	(13,719)	$	12,969	$	(13,719)

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Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The following table presents a summary of intangible assets subject to amortization at the dates indicated.

	September 30, 2021								December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
(Dollars in thousands)
Core Deposit Intangible	$	14,103	$	(8,386)	$	(1,178)	$	4,539	$	14,103	$	(7,047)	$	7,056
Customer List	1,800		(599)		—		1,201		1,800		(457)		1,343
Total Intangible Assets	$	15,903	$	(8,985)	$	(1,178)	$	5,740	$	15,903	$	(7,504)	$	8,399

On June 10, 2021, the Agreement was executed with Citizens Bank pursuant to which Citizens Bank has agreed to assume certain deposits of the branch offices of Community Bank located in Buckhannon, West Virginia, and in New Martinsville, West Virginia. In 2018, the Company recorded a core deposit intangible asset related to the acquisition of these two branches as part of the merger with First West Virginia Bancorp, Inc. As a result of signing the Agreement and the expected sale of a portion of the deposits associated with the remaining core deposit intangible, the Company performed an interim evaluation to determine whether the core deposit intangible was impaired. As a result of the evaluation, the Company determined the carrying amount of the core deposit intangible was impaired $1.2 million. The Company recorded the impairment in Intangible Asset and Goodwill Impairment on the Consolidated Statements of Income (Loss).

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in subsequent fiscal years is as follows as of September 30, 2021.

	Amount
(Dollars in thousands)
Remaining in 2021	$	445
2022	1,782
2023	1,782
2024	1,147
2025	189
2026 and Thereafter	395
Total Estimated Intangible Asset Amortization Expense	$	5,740

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Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2021

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

Mortgage Servicing Rights

The following table presents MSR activity and net carrying values for the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Mortgage Servicing Rights:
Balance, Beginning of Period	$	902	$	1,032	$	1,029	$	1,001
Additions	32		73		64		210
Amortization	(70)		(71)		(229)		(177)
Balance, End of Period	$	864	$	1,034	$	864	$	1,034
Valuation Allowance:
Balance, Beginning of Period	$	(213)	$	(340)	$	(373)	$	(71)
Valuation Allowance Adjustment	82		—		242		(269)
Balance, End of Period	$	(131)	$	(340)	$	(131)	$	(340)
Mortgage Servicing Rights, Net Carrying Value	$	733	$	694	$	733	$	694

Amortization of MSRs and the period change in the valuation allowance are reported in Other Income on the Consolidated Statements of Income (Loss).

Real estate loans serviced for others, which are not included in the Consolidated Statements of Financial Condition, totaled $96.6 million and $105.8 million at September 30, 2021 and December 31, 2020, respectively.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of CB Financial Services, Inc. (“CB Financial”) and its wholly owned subsidiary, Community Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, Exchange Underwriters, Inc. (“Exchange Underwriters”). CB Financial, the Bank and Exchange Underwriters are collectively referred to as the “Company”. All intercompany transactions and balances have been eliminated in consolidation.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with general practice within the banking industry. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading in any material respect. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and income and expenses for the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, other-than-temporary impairment evaluations of securities, goodwill and intangible assets impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented. All these adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Interim results are not necessarily indicative of results for a full year.

The Company evaluated subsequent events through the date the consolidated financial statements were filed with the SEC and incorporated into the consolidated financial statements the effect of all material known events determined by Accounting Standards Codification ("ASC") 855, Subsequent Events, to be recognizable events.

Nature of Operations

Nature of Operations

The Company derives substantially all its income from banking and bank-related services which include interest earnings on commercial, commercial mortgage, residential real estate and consumer loan financing, as well as interest earnings on investment securities and fees generated from deposit services to its customers. The Company provides banking services through its subsidiary, Community Bank, a Pennsylvania-chartered commercial bank. The Bank operates 11 branches in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania, and five branches in Marshall, Ohio, Upshur and Wetzel Counties in West Virginia. The Bank is a community-oriented institution offering residential and commercial real estate loans, commercial and industrial loans, and consumer loans as well as a variety of deposit products for individuals and businesses in its market area. Property and casualty, commercial liability, surety and other insurance products are offered through Exchange Underwriters, a full-service, independent insurance agency.

Reclassifications

Reclassifications

Certain comparative amounts for the prior year have been reclassified to conform to the current year presentation. Such reclassifications did not affect net income or stockholders’ equity.

Assets And Liabilities Held For Sale

Assets and Liabilities Held for Sale

Assets and liabilities (disposal groups) are classified as held for sale when their carrying amounts will be recovered principally through sale when all of the following criteria are met:

•management, having the authority to approve the action, commits to a plan to sell the disposal group;

•the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups;

•an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated;

•the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year;

•the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and

•actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Assets and liabilities held for sale are measured at the lower of carrying amount and fair value, less estimated costs to sell, and are presented separately on the Consolidated Statements of Financial Condition. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any estimated costs to sell, each reporting period it remains classified as held for sale and reports any subsequent losses as an adjustment to the carrying value of the disposal group. Assets classified as held for sale are no longer depreciated or amortized.

Loans held for sale may consist of residential real estate loans originated and intended for sale in the secondary market. These loans are generally sold with loan servicing rights retained. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential real estate loans held for sale are included in noninterest income.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company routinely performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable and are in excess of their fair value, less estimated costs to sell. If estimated recoverable amounts are lower than carrying values, assets are considered impaired and reduced to their recoverable amounts with the recognized impairment charges recorded in noninterest expense in the Consolidated Statements of (Loss) Income.

Long-lived assets are tested for impairment individually or as part of an asset group. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities.

The Company follows ASC 360, Property, Plant and Equipment, which requires three steps to identify, recognize and measure the impairment of a long-lived asset (asset group) to be held and used:

Step 1 – Consider whether Indicators of Impairment are Present.

The following are examples of such events or changes in circumstances.

•A significant decrease in the market price of a long-lived asset (asset group).

•A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition.

•A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator.

•An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group).

•A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group).

•A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent.

Step 2—Test for Recoverability

If indicators of impairment are present, the Company performs a recoverability test comparing the sum of the estimated undiscounted cash flows attributable to the long-lived asset or asset group in question to the carrying amount of the long-lived asset or asset group.

Step 3—Measurement of an Impairment Loss

If the undiscounted cash flows used in the recoverability test are less than the carrying amount of the long-lived asset (asset group), the Company estimates the fair value of the long-lived asset or asset group and recognizes an impairment loss when the carrying amount of the long-lived asset or asset group exceeds the estimated fair value.

An impairment loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long-lived asset of the group must not reduce the carrying amount of

that asset below its fair value whenever the fair value is determinable without undue cost and effort. ASC 360 prohibits the subsequent reversal of an impairment loss for an asset held and used.

Recent Accounting Standards

Recent Accounting Standards

In August 2021, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update ("ASU") 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The SEC rule changes update and expand the statistical disclosures that bank and savings and loan registrants provide to investors, in light of changes in this sector over the past 30 years. The rules also eliminate certain disclosure items that are duplicative of other SEC rules and requirements of U.S. GAAP. The rules replace Industry Guide 3, Statistical Disclosure by Bank Holding Companies, with updated disclosure requirements in a new subpart of Regulation S-K. The rules are intended to help ensure that investors have access to more meaningful, relevant information to facilitate their investment and voting decisions. The amendments are effective prospectively for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect the adoption of this ASU will have a material impact on the Company's consolidated statements of financial condition or results of operation.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. The elective guidance in the ASU applies to modifications of contract terms that will directly replace, or have the potential to replace, an affected rate with another interest rate index, as well as certain contemporaneous modifications of other contract terms related to the replacement of an affected rate. The ASU notes that changes in contract terms that are made to effect the reference rate reform transition are considered related to the replacement of a reference rate if they are not the result of a business decision that is separate from or in addition to changes to the terms of a contract to effect that transition. The optional expedient allows companies to account for the modification as if it was not substantial (i.e., do not treat as an extinguishment of debt). The ASU is intended to help stakeholders during the global market-wide reference rate transition period. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. While the LIBOR reform may require extensive changes to the contracts that govern LIBOR based products, as well as our systems and processes, we cannot yet determine whether the Company will be able to use the optional expedient for the changes to contract terms that may be required by LIBOR reform and therefore, the Company cannot yet determine the magnitude of the impact or the overall impact of the new guidance on the Company’s consolidated financial condition or results of operation.

In December 2019, FASB issued ASU 2019-12, Income taxes (Topic 740); Simplifying the Accounting for Income Taxes. ASU 2019-12 provides amendments intended to reduce the cost and complexity in accounting for income taxes while maintaining or improving the usefulness of the information provided to users of financial statements. ASU 2019-12 removes the following exceptions from ASC 740, Income Taxes: (i) exceptions to the incremental approach for intraperiod tax allocation; (ii) exceptions to accounting for basis differences when a foreign subsidiary becomes an equity method investment or a foreign equity method investment become a subsidiary; and (iii) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. ASU 2019-12 provides the following amendments that simplify and improve guidance with Topic 740: (i) franchise taxes that are based partially on income; (ii) transactions that result in a step up in the tax basis of goodwill; (iii) separate financial statements of legal entities that are not subject to tax; (iv) enacted changes in tax laws in interim periods; and (v) employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this ASU did not have a material impact on the Company's consolidated statements of financial condition or results of operation.

In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, ASU 2016-13 eliminates the probable initial recognition threshold in current GAAP; and instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however this ASU requires that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects companies holding financial assets and net investment in leases that are not accounted for at fair value through net income. The ASU 2016-13 amendments affect loans, debt securities, trade receivables, net investments in

leases, off balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 was originally effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Company, resulting in a required implementation date for the Company of January 1, 2023. Early adoption will continue to be permitted. The Company is evaluating the impact of this ASU and expects to recognize a one-time adjustment to the allowance for loan losses upon adoption, but we cannot yet determine the magnitude of the one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial condition or results of operation.

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Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale (Tables)

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Schedule of assets and liabilities classified as held for sale

The assets and liabilities classified as held for sale of the disposal group related to the branch sales are as follows at September 30, 2021.

	September 30, 2021
(Dollars in thousands)
Loans Held for Sale
Real Estate:
Residential	$	2,290
Commercial	2,911
Commercial and Industrial	592
Consumer	252
Other	453
Total Loans Held for Sale	$	6,498
Premises and Equipment Held for Sale	795
Deposits Held for Sale
Non-Interest Bearing Demand Deposits	$	15,070
Interest Bearing Demand Deposits	31,502
Money Market Accounts	17,578
Savings Accounts	20,803
Time Deposits	17,694
Total Deposits Held for Sale	$	102,647

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Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands, except share and per share data)
Net Income (Loss)	$	1,983	$	(17,395)	$	4,605	$	(13,719)
Weighted-Average Basic Common Shares Outstanding	5,373,032		5,395,342		5,412,989		5,406,710
Dilutive Effect of Common Stock Equivalents (Stock Options and Restricted Stock)	17,096		—		7,803		—
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding	5,390,128		5,395,342		5,420,792		5,406,710
Earnings (Loss) Per Share:
Basic	$	0.37	$	(3.22)	$	0.85	$	(2.54)
Diluted	0.37		(3.22)		0.85		(2.54)

Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share

The following table presents for the periods indicated (a) options to purchase shares of common stock that were outstanding but not included in the computation of earnings per share because the options’ exercise price was greater than the average market price of the common shares for the period, and (b) shares of restricted stock awards that were not included in the computation of diluted earnings per share because the hypothetical repurchase of shares under the treasury stock method exceeded the weighted average nonvested restricted awards, therefore the effects would be anti-dilutive.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Stock Options	71,741	220,271	199,641	220,271
Restricted Stock	23,000	49,130	32,360	49,130

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Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Available-for-sale

The following table presents the amortized cost and fair value of securities available-for-sale at the dates indicated:

	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-Sale Debt Securities:
U.S. Government Agencies	$	50,992	$	—	$	(1,054)	$	49,938
Obligations of States and Political Subdivisions	18,356		1,064		—		19,420
Mortgage-Backed Securities - Government-Sponsored Enterprises	140,255		2,205		(770)		141,690
Corporate Debt	7,482		—		(1)		7,481
Total Available-for-Sale Debt Securities	217,085		3,269		(1,825)		218,529
Equity Securities:
Mutual Funds							999
Other							1,823
Total Equity Securities							2,822
Total Securities							$	221,351

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Available-for-Sale Debt Securities:
U.S. Government Agencies	$	41,994	$	12	$	(595)	$	41,411
Obligations of States and Political Subdivisions	20,672		1,321		—		21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises	75,900		3,593		—		79,493
Total Available-for-Sale Debt Securities	138,566		4,926		(595)		142,897
Equity Securities:
Mutual Funds							1,019
Other							1,484
Total Equity Securities							2,503
Total Securities							$	145,400

Schedule of Unrealized Loss on Investments

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at the dates indicated:

	September 30, 2021
	Less than 12 months					12 Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
(Dollars in thousands)
U.S. Government Agencies	7	$	25,759	$	(239)	5	$	24,179	$	(815)	12	$	49,938	$	(1,054)
Mortgage Backed Securities- Government Sponsored Enterprises	10	64,133		(770)		—	—		—		10	64,133		(770)
Corporate Debt	1	4,950		(1)		—	—		—		1	4,950		(1)
Total	18	$	94,842	$	(1,010)	5	$	24,179	$	(815)	23	$	119,021	$	(1,825)

	December 31, 2020
	Less than 12 months					12 Months or Greater					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
(Dollars in thousands)
U.S. Government Agencies	7	$	32,399	$	(595)	—	$	—	$	—	7	$	32,399	$	(595)
Total	7	$	32,399	$	(595)	—	$	—	$	—	7	$	32,399	$	(595)

Investments Classified by Contractual Maturity Date

The following table presents the scheduled maturities of debt securities as of the date indicated:

	September 30, 2021
	Amortized Cost		Fair Value
(Dollars in thousands)
Due in One Year or Less	$	2,583	$	2,620
Due after One Year through Five Years	4,394		4,404
Due after Five Years through Ten Years	70,946		71,437
Due after Ten Years	139,162		140,068
Total	$	217,085	$	218,529

Schedule of Realized Gain (Loss)

The following table presents the gross realized gain and loss on sales of debt securities, as well as gain and loss on equity securities from both sales and market adjustments for the periods indicated. All gains and losses presented in the table below are reported in net gain on securities on the Consolidated Statements of Income (Loss).

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Debt Securities
Gross Realized Gain	$	—	$	—	$	225	$	489
Gross Realized Loss	—		—		—		—
Net Gain on Debt Securities	$	—	$	—	$	225	$	489
Equity Securities
Net Unrealized Gain (Loss) Recognized on Securities Held	$	18	$	(59)	$	251	$	(469)
Net Realized Gain Recognized on Securities Sold	6		—		6		—
Net Gain (Loss) on Equity Securities	$	24	$	(59)	$	257	$	(469)
Net Gain (Loss) on Securities	$	24	$	(59)	$	482	$	20

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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table presents the classifications of loans as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Percent		Amount		Percent
(Dollars in thousands)
Real Estate:
Residential	$	317,373	31.7	%	$	344,142	32.9	%
Commercial	379,621		37.9		373,555		35.9
Construction	78,075		7.8		72,600		6.9
Commercial and Industrial	102,360		10.2		126,813		12.1
Consumer	112,087		11.2		113,854		10.9
Other	12,083		1.2		13,789		1.3
Total Loans	1,001,599		100.0	%	1,044,753		100.0	%
Allowance for Loan Losses	(11,581)				(12,771)
Loans, Net	$	990,018			$	1,031,982

Schedule of Accounts, Notes, Loans and Financing Receivable Held-for-sale

The following table presents classification of loans held for sale as of September 30, 2021. Loans held for sale includes $6.5 million related to the Agreement executed with Citizens Bank and $7.4 million of residential real estate loans originated and intended for sale in the secondary market. In addition, a $3.6 million nonaccrual and substandard-rated commercial real estate loan secured by a hotel that was transferred into the held for sale portfolio at September 30, 2021 was sold in October 2021 and

will result in the recognition of an $897,000 gain on sale of loans in the fourth quarter of 2021. This loan previously incurred a $931,000 charge-off in the prior year. There were no loans held for sale at December 31, 2020.

	September 30 2021
(Dollars in thousands)
Real Estate:
Residential	$	9,640
Commercial	6,470
Construction	—
Commercial and Industrial	592
Consumer	252
Other	453
Total Loans Held for Sale	$	17,407

Financing Receivable Credit Quality Indicators

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At September 30, 2021 and December 31, 2020, there were no loans in the criticized category of Loss within the internal risk rating system.

	September 30, 2021
	Pass		Special Mention		Substandard		Doubtful		Total
(Dollars in Thousands)
Real Estate:
Residential	$	314,266	$	869	$	2,238	$	—	$	317,373
Commercial	339,193		28,018		12,410		—		379,621
Construction	66,649		10,785		641		—		78,075
Commercial and Industrial	87,901		12,410		1,513		536		102,360
Consumer	112,017		—		70		—		112,087
Other	12,012		71		—		—		12,083
Total Loans	$	932,038	$	52,153	$	16,872	$	536	$	1,001,599

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
(Dollars in Thousands)
Real Estate:
Residential	$	340,573	$	1,115	$	2,454	$	—	$	344,142
Commercial	320,358		37,482		15,715		—		373,555
Construction	68,343		53		4,204		—		72,600
Commercial and Industrial	113,797		7,787		4,620		609		126,813
Consumer	113,805		—		49		—		113,854
Other	13,711		78		—		—		13,789
Total Loans	$	970,587	$	46,515	$	27,042	$	609	$	1,044,753

Financing Receivable, Past Due

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	September 30, 2021
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
(Dollars in Thousands)
Real Estate:
Residential	$	315,124	$	613	$	—	$	—	$	613	$	1,636	$	317,373
Commercial	374,315		—		—		—		—		5,306		379,621
Construction	78,075		—		—		—		—		—		78,075
Commercial and Industrial	100,817		—		—		—		—		1,543		102,360
Consumer	111,515		484		18		—		502		70		112,087
Other	12,083		—		—		—		—		—		12,083
Total Loans	$	991,929	$	1,097	$	18	$	—	$	1,115	$	8,555	$	1,001,599

	December 31, 2020
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
(Dollars in Thousands)
Real Estate:
Residential	$	339,067	$	2,919	$	315	$	—	$	3,234	$	1,841	$	344,142
Commercial	365,712		1		740		—		741		7,102		373,555
Construction	72,600		—		—		—		—		—		72,600
Commercial and Industrial	124,916		—		—		—		—		1,897		126,813
Consumer	112,952		784		61		8		853		49		113,854
Other	13,789		—		—		—		—		—		13,789
Total Loans	$	1,029,036	$	3,704	$	1,116	$	8	$	4,828	$	10,889	$	1,044,753

Financing Receivable, Nonaccrual

The following table sets forth the amounts and categories of nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section. Nonperforming loans do not include loans modified under Section 4013 of the CARES Act and interagency guidance as further explained below.

	September 30, 2021			December 31, 2020
(Dollars in Thousands)
Nonaccrual Loans:
Real Estate:
Residential	$	1,636		$	1,841
Commercial	5,306			7,102
Construction	—			—
Commercial and Industrial	1,543			1,897
Consumer	70			49
Total Nonaccrual Loans	8,555			10,889
Accruing Loans Past Due 90 Days or More:
Consumer	—			8
Total Accruing Loans Past Due 90 Days or More	—			8
Total Nonaccrual Loans and Accruing Loans Past Due 90 Days or More	8,555			10,897
Troubled Debt Restructurings, Accruing:
Real Estate
Residential	622			650
Commercial	1,713			2,861
Commercial and Industrial	17			80
Total Troubled Debt Restructurings, Accruing	2,352			3,591
Total Nonperforming Loans	10,907			14,488
Other Real Estate Owned:
Residential	36			—
Commercial	—			208
Total Other Real Estate Owned	36			208
Total Nonperforming Assets	$	10,943		$	14,696
Nonperforming Loans to Total Loans	1.09		%	1.39		%
Nonperforming Assets to Total Assets	0.74			1.04

Financing Receivable, Loan Forbearance

The following table provides details of loans in forbearance as of the dates indicated.

	September 30, 2021					December 31, 2020
	Number of Loans	Amount		% of Portfolio		Number of Loans	Amount		% of Portfolio
(Dollars in thousands)
Real Estate:
Residential	—	$	—	—	%	4	$	749	0.2	%
Commercial	—	—		—	%	8	19,818		5.3	%
Construction	—	—		—	%	1	1,958		2.7	%
Commercial and Industrial	—	—		—	%	5	1,219		1.0	%
Consumer	—	—		—	%	13	356		0.3	%
Total Loans in Forbearance	—	$	—	—	%	31	$	24,100	2.3	%

Financing Receivable, Troubled Debt Restructuring

The following table presents information at the time of modification related to loans modified in a TDR during the periods indicated. During the three and nine months ended September 30, 2021, there were no loans that were modified that were considered a TDR.

	Three Months Ended September 30, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
(Dollars in thousands)
Real Estate:
Commercial	1	$	504	$	519	$	—
Commercial and Industrial	1	38		38		—
Total	2	$	542	557		$	—

	Nine Months Ended September 30, 2020
	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
(Dollars in thousands)
Real Estate:
Residential	1	$	234	$	234	$	—
Commercial	1	504		519		—
Commercial and Industrial	1	38		38		—
Total	3	$	776	$	791	$	—

Impaired Financing Receivables

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	September 30, 2021
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential	$	1,146	$	—	$	1,150	$	1,165	$	35
Commercial	13,100		—		13,315		13,361		235
Construction	641		—		641		641		16
Commercial and Industrial	2,066		—		2,351		2,922		24
Total With No Related Allowance Recorded	$	16,953	$	—	$	17,457	$	18,089	$	310
With A Related Allowance Recorded:
Real Estate:
Residential	$	—	$	—	$	—	$	—	$	—
Commercial	272		199		272		473		16
Construction	—		—		—		—		—
Commercial and Industrial	—		—		—		—		—
Total With A Related Allowance Recorded	$	272	$	199	$	272	$	473	$	16
Total Impaired Loans:
Real Estate:
Residential	$	1,146	$	—	$	1,150	$	1,165	$	35
Commercial	13,372		199		13,587		13,834		251
Construction	641		—		641		641		16
Commercial and Industrial	2,066		—		2,351		2,922		24
Total Impaired Loans	$	17,225	$	199	$	17,729	$	18,562	$	326

	December 31, 2020
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With No Related Allowance Recorded:
Real Estate:
Residential	$	1,183	$	—	$	1,187	$	1,194	$	46
Commercial	31,865		—		32,887		37,443		1,418
Construction	4,204		—		4,204		4,013		159
Commercial and Industrial	3,296		—		3,506		3,426		89
Total With No Related Allowance Recorded	$	40,548	$	—	$	41,784	$	46,076	$	1,712
With A Related Allowance Recorded:
Real Estate:
Residential	$	—	$	—	$	—	$	—	$	—
Commercial	1,524		293		1,524		1,585		72
Construction	—		—		—		—		—
Commercial and Industrial	2,069		356		2,069		2,114		57
Total With A Related Allowance Recorded	$	3,593	$	649	$	3,593	$	3,699	$	129
Total Impaired Loans
Real Estate:
Residential	$	1,183	$	—	$	1,187	$	1,194	$	46
Commercial	33,389		293		34,411		39,028		1,490
Construction	4,204		—		4,204		4,013		159
Commercial and Industrial	5,365		356		5,575		5,540		146
Total Impaired Loans	$	44,141	$	649	$	45,377	$	49,775	$	1,841

Financing Receivable, Allowance for Credit Loss

The following tables present the activity in the allowance for loan losses summarized by primary segments and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment at the dates and for the periods indicated.

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
June 30, 2021	$	1,588	$	5,582	$	1,136	$	1,152	$	941	$	—	$	1,145	$	11,544
Charge-offs	—		—		—		—		(19)		—		—		(19)
Recoveries	2		—		—		11		43		—		—		56
Provision (Recovery)	(98)		347		(71)		(21)		(12)		—		(145)		—
September 30, 2021	$	1,492	$	5,929	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,581

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
December 31, 2020	$	2,249	$	6,010	$	889	$	1,423	$	1,283	$	—	$	917	$	12,771
Charge-offs	—		—		—		—		(139)		—		—		(139)
Recoveries	15		—		—		33		101		—		—		149
Provision (Recovery)	(772)		(81)		176		(314)		(292)		—		83		(1,200)
September 30, 2021	$	1,492	$	5,929	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,581

	September 30, 2021
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	199	$	—	$	—	$	—	$	—	$	—	$	199
Collectively Evaluated for Potential Impairment	$	1,492	$	5,730	$	1,065	$	1,142	$	953	$	—	$	1,000	$	11,382

	December 31, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	293	$	—	$	356	$	—	$	—	$	—	$	649
Collectively Evaluated for Potential Impairment	$	2,249	$	5,717	$	889	$	1,067	$	1,283	$	—	$	917	$	12,122

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
June 30, 2020	$	2,688	$	5,160	$	820	$	1,566	$	1,714	$	—	$	700	$	12,648
Charge-offs	(11)		—		—		—		(103)		—		—		(114)
Recoveries	1		1		—		6		38		—		—		46
Provision (Recovery)	(506)		1,711		71		170		(290)		—		44		1,200
September 30, 2020	$	2,172	$	6,872	$	891	$	1,742	$	1,359	$	—	$	744	$	13,780

	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
December 31, 2019	$	2,023	$	3,210	$	285	$	2,412	$	1,417	$	—	$	520	$	9,867
Charge-offs	(36)		—		—		—		(239)		—		—		(275)
Recoveries	5		28		—		21		134		—		—		188
Provision (Recovery)	180		3,634		606		(691)		47		—		224		4,000
September 30, 2020	$	2,172	$	6,872	$	891	$	1,742	$	1,359	$	—	$	744	$	13,780

	September 30, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Unallocated		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	—	$	2,248	$	—	$	607	$	—	$	—	$	—	$	2,855
Collectively Evaluated for Potential Impairment	$	2,172	$	4,624	$	891	$	1,135	$	1,359	$	—	$	744	$	10,925

Allowance for Credit Loss Individually Collectively Evaluated for Impairment

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated. At September 30, 2021 and December 31, 2020, commercial and industrial loans include $32.7 million and $55.1 million, respectively, of PPP loans collectively evaluated for potential impairment. No allowance for loan loss was allocated to the PPP loan portfolio due to the Bank complying with the lender obligations that ensure SBA guarantee.

	September 30, 2021
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	1,146	$	13,372	$	641	$	2,066	$	—	$	—	$	17,225
Collectively Evaluated for Potential Impairment	316,227		366,249		77,434		100,294		112,087		12,083		984,374
Total Loans	$	317,373	$	379,621	$	78,075	$	102,360	$	112,087	$	12,083	$	1,001,599

	December 31, 2020
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
(Dollars in thousands)
Individually Evaluated for Impairment	$	1,183	$	33,389	$	4,204	$	5,365	$	—	$	—	$	44,141
Collectively Evaluated for Potential Impairment	342,959		340,166		68,396		121,448		113,854		13,789		1,000,612
Total Loans	$	344,142	$	373,555	$	72,600	$	126,813	$	113,854	$	13,789	$	1,044,753

Schedule of Accretable Discount on Loans Acquired at Fair Value

The following table presents changes in the accretable discount on the loans acquired at fair value at the dates indicated.

	Accretable Discount
(Dollars in Thousands)
December 31, 2020	$	1,194
Accretable Yield	(385)
September 30, 2021	$	809

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Time Deposits (Tables)

9 Months Ended

Sep. 30, 2021

Deposits [Abstract]

Time Deposit Maturities

The following table shows the maturities of time deposits for the next five years and beyond at the date indicated.

September 30, 2021	Time Deposits		Time Deposits Held for Sale		Time Deposits, Net
(Dollars in thousands)
One Year or Less	$	68,228	$	8,560	$	59,668
Over One Through Two Years	58,693		4,346		54,347
Over Two Through Three Years	10,758		1,034		9,724
Over Three Through Four Years	11,362		2,415		8,947
Over Four Through Five Years	9,645		1,143		8,502
Over Five Years	3,735		196		3,539
Total	$	162,421	$	17,694	$	144,727

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Short-Term Borrowings (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The following table sets forth the components of short-term borrowings as of the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(Dollars in thousands)
Securities Sold Under Agreements to Repurchase:
Balance at Period End	$	42,623	0.16	%	$	41,055	0.21	%
Average Balance Outstanding During the Period	43,745		0.22		37,819		0.36
Maximum Amount Outstanding at any Month End	52,777				46,123
Securities Collaterizing the Agreements at Period-End:
Carrying Value	56,351				46,312
Market Value	56,412				47,283

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Other Borrowed Funds (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The following table sets forth the scheduled maturities of other borrowed funds at the dates indicated.

	September 30, 2021				December 31, 2020
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(Dollars in thousands)
Due in One Year	$	3,000	2.23	%	$	2,000	2.12	%
Due After One Year to Two Years	3,000		2.41		3,000		2.23
Due After Two Years to Three Years	—		—		3,000		2.41
Total	$	6,000	2.32	%	$	8,000	2.27	%

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Fair Value Disclosure (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statements of Financial Condition as of the dates indicated, by level within the fair value hierarchy. The majority of the Company’s securities are included in Level 2 of the fair value hierarchy. Fair values for Level 2 securities were primarily determined by a third-party pricing service using both quoted prices for similar assets, when available, and model-based valuation techniques that derive fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. The standard inputs that are normally used include benchmark yields of like securities, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. There were no transfers into or out of Level 3 during the nine months ended September 30, 2021 or year ended December 31, 2020.

	Fair Value Hierarchy	September 30 2021		December 31 2020
(Dollars in thousands)
Securities:
Available-for-Sale Debt Securities
U.S. Government Agencies	Level 2	$	49,938	$	41,411
Obligations of States and Political Subdivisions	Level 2	19,420		21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises	Level 2	141,690		79,493
Corporate Debt	Level 2	7,481		—
Total Available-for-Sale Debt Securities		218,529		142,897
Equity Securities
Mutual Funds	Level 1	999		1,019
Other	Level 1	1,823		1,484
Total Equity Securities		2,822		2,503
Total Securities		$	221,351	$	145,400

Fair Value Measurement Inputs and Valuation Techniques

The following table presents the financial assets on the Consolidated Statements of Financial Condition measured at fair value on a nonrecurring basis as of the dates indicated by level within the fair value hierarchy for only those nonrecurring assets that had a fair value below the carrying amount. The table also presents the significant unobservable inputs used in the fair value measurements.

Financial Asset	Fair Value Hierarchy	September 30, 2021		Valuation Techniques	Significant Unobservable Inputs	Range					Weighted Average
(Dollars in thousands)
Impaired Loans Individually Assessed	Level 3	$	73	Appraisal of Collateral (1)	Appraisal Adjustments (2)	0	%	to	50	%	50.0%
Mortgage Servicing Rights	Level 3	733		Discounted Cash Flow	Discount Rate	9	%	to	11	%	10.1%
					Prepayment Speed	10	%	to	29	%	19.9%

Financial Asset	Fair Value Hierarchy	December 31, 2020		Valuation Techniques	Significant Unobservable Inputs	Range					Weighted Average
(Dollars in thousands)
Impaired Loans Individually Assessed	Level 3	$	2,944	Appraisal of Collateral (1)	Appraisal Adjustments (2)	0	%	to	50	%	—
Mortgage Servicing Rights	Level 3	656		Discounted Cash Flow	Discount Rate	9	%	to	11	%	10.0%
					Prepayment Speed	12	%	to	27	%	18.7%
OREO	Level 3	34		Appraisal of Collateral (1)	Liquidation Expenses (2)	10	%	to	30	%	—

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include various Level 3 inputs, which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of appraisal adjustments and liquidation expense are presented as a percent of the appraisal.

Fair Value, by Balance Sheet Grouping

The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.

		September 30, 2021				December 31, 2020
	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
(Dollars in thousands)
Financial Assets:
Cash and Due From Banks:
Interest Bearing	Level 1	$	131,835	$	131,835	$	145,636	$	145,636
Non-Interest Bearing	Level 1	41,688		41,688		15,275		15,275
Securities	See Above	221,351		221,351		145,400		145,400
Loans Held for Sale	Level 2	17,407		18,304		—		—
Loans, Net	Level 3	990,018		1,022,160		1,031,982		1,073,633
Property and Equipment Held for Sale	Level 2	795		795		—		—
Restricted Stock	Level 2	3,451		3,451		3,984		3,984
Mortgage Servicing Rights	Level 3	733		733		656		656
Accrued Interest Receivable	Level 2	3,355		3,355		3,872		3,872
Financial Liabilities:
Deposits Held for Sale	Level 2	102,647		107,779		—		—
Deposits	Level 2	1,185,156		1,186,603		1,224,569		1,231,606
Short-Term Borrowings	Level 2	42,623		42,623		41,055		41,055
Other Borrowed Funds	Level 2	6,000		6,058		8,000		8,067
Accrued Interest Payable	Level 2	490		490		767		767

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Commitments and Contingent Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks

The following table presents the unused and available credit balances of financial instruments whose contracts represent credit risk at the dates indicated.

	September 30, 2021		December 31, 2020
(Dollars in thousands)
Standby Letters of Credit	$	110	$	120
Performance Letters of Credit	2,764		2,947
Construction Mortgages	56,809		60,312
Personal Lines of Credit	7,132		6,930
Overdraft Protection Lines	5,895		6,287
Home Equity Lines of Credit	22,797		22,110
Commercial Lines of Credit	74,127		69,738
Total Commitments	$	169,634	$	168,444

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Lease, Cost

The following tables present the lease expense, ROU assets, weighted average term, discount rate and maturity analysis of lease liabilities for operating leases for the periods and dates indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Operating Lease Expense	$	74	$	118	$	257	$	353
Short-Term Lease Expense	8		—		25		—
Variable Lease Expense	8		10		24		28
Total Lease Expense	$	90	$	128	$	306	$	381

	September 30, 2021			December 31, 2020
(Dollars in thousands)
Operating Leases:
ROU Assets	$	741		$	1,206
Weighted Average Lease Term in Years	7.16			6.95
Weighted Average Discount Rate	2.47		%	2.39		%

Lessee, Operating Lease, Liability, Maturity

	September 30, 2021
(Dollars in thousands)
Maturity Analysis:
Due in One Year	$	309
Due After One Year to Two Years	178
Due After Two Years to Three Years	113
Due After Three Years to Four Years	90
Due After Four to Five Years	45
Due After Five Years	330
Total	$	1,065
Less: Present Value Discount	106
Lease Liabilities	$	959

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Other Noninterest Expense (Tables)

9 Months Ended

Sep. 30, 2021

Other Income and Expenses [Abstract]

Schedule of Other Operating Cost and Expense, by Component

The details of other noninterest expense for the Company’s Consolidated Statements of (Loss) Income for the periods indicated are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Non-Employee Compensation	$	184	$	155	$	473	$	449
Printing and Supplies	55		125		218		365
Postage	86		61		265		176
Telephone	145		108		472		408
Charitable Contributions	45		32		80		98
Dues and Subscriptions	33		36		121		153
Loan Expenses	86		149		288		420
Meals and Entertainment	31		—		91		74
Travel	27		13		77		87
Training	5		10		29		24
Bank Assessment	46		44		134		132
Insurance	54		59		173		173
Miscellaneous	106		127		409		418
Total Other Noninterest Expense	$	903	$	919	$	2,830	$	2,977

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Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following is a table of selected financial data for the Company’s subsidiaries and consolidated results at the dates and for the periods indicated.

	Community Bank		Exchange Underwriters, Inc.		CB Financial Services, Inc.		Net Eliminations		Consolidated
(Dollars in thousands)
September 30, 2021
Assets	$	1,474,626	$	4,656	$	130,994	$	(135,458)	$	1,474,818
Liabilities	1,352,005		1,672		7		(9,853)		1,343,831
Stockholders' Equity	122,621		2,984		130,987		(125,605)		130,987
December 31, 2020
Assets	$	1,416,132	$	5,379	$	134,546	$	(139,337)	$	1,416,720
Liabilities	1,287,148		2,325		16		(7,299)		1,282,190
Stockholders' Equity	128,984		3,054		134,530		(132,038)		134,530
Three Months Ended September 30, 2021
Interest and Dividend Income	$	10,768	$	1	$	1,311	$	(1,294)	$	10,786
Interest Expense	776		—		—		—		776
Net Interest and Dividend Income	9,992		1		1,311		(1,294)		10,010
Provision for Loan Losses	—		—		—		—		—
Net Interest and Dividend Income After Provision for Loan Losses	9,992		1		1,311		(1,294)		10,010
Noninterest Income	975		1,195		28		—		2,198
Noninterest Expense	8,750		1,020		3		—		9,773
Undistributed Net Income of Subsidiary	124		—		654		(778)		—
Income Before Income Tax Expense	2,341		176		1,990		(2,072)		2,435
Income Tax Expense	393		52		7		—		452
Net Income	$	1,948	$	124	$	1,983	$	(2,072)	$	1,983
Nine Months Ended September 30, 2021
Interest and Dividend Income	$	32,536	$	4	$	8,456	$	(8,402)	$	32,594
Interest Expense	2,673		—		—		—		2,673
Net Interest and Dividend Income	29,863		4		8,456		(8,402)		29,921
(Recovery) Provision for Loan Losses	(1,200)		—		—		—		(1,200)
Net Interest and Dividend Income After (Recovery) Provision for Loan Losses	31,063		4		8,456		(8,402)		31,121
Noninterest Income	3,319		3,995		277		—		7,591
Noninterest Expense	29,898		2,983		9		—		32,890
Undistributed Net Income (Loss) of Subsidiary	710		—		(4,096)		3,386		—
Income Before Income Tax Expense	5,194		1,016		4,628		(5,016)		5,822
Income Tax Expense	888		306		23		—		1,217
Net Income	$	4,306	$	710	$	4,605	$	(5,016)	$	4,605

	Community Bank		Exchange Underwriters, Inc.		CB Financial Services, Inc.		Net Eliminations		Consolidated
(Dollars in thousands)
Three Months Ended September 30, 2020
Interest and Dividend Income	$	11,639	$	1	$	1,310	$	(1,294)	$	11,656
Interest Expense	1,240		—		—		—		1,240
Net Interest and Dividend Income	10,399		1		1,310		(1,294)		10,416
Provision for Loan Losses	1,200		—		—		—		1,200
Net Interest and Dividend Income After Provision for Loan Losses	9,199		1		1,310		(1,294)		9,216
Noninterest Income	1,208		1,024		(59)		—		2,173
Noninterest Expense	28,046		919		3		—		28,968
Undistributed Net Income (Loss) of Subsidiary	73		—		(18,694)		18,621		—
(Loss) Income Before Income Tax (Benefit) Expense	(17,566)		106		(17,446)		17,327		(17,579)
Income Tax (Benefit) Expense	(166)		33		(51)		—		(184)
Net (Loss) Income	$	(17,400)	$	73	$	(17,395)	$	17,327	$	(17,395)
Nine Months Ended September 30, 2020
Interest and Dividend Income	$	35,664	$	3	$	2,634	$	(2,589)	$	35,712
Interest Expense	4,442		—		—		—		4,442
Net Interest and Dividend Income	31,222		3		2,634		(2,589)		31,270
Provision for Loan Losses	4,000		—		—		—		4,000
Net Interest and Dividend Income After Provision for Loan Losses	27,222		3		2,634		(2,589)		27,270
Noninterest Income (Loss)	3,760		3,426		(493)		—		6,693
Noninterest Expense	44,227		2,806		9		—		47,042
Undistributed Net Income (Loss) of Subsidiary	433		—		(15,991)		15,558		—
(Loss) Income Before Income Tax Expense (Benefit)	(12,812)		623		(13,859)		12,969		(13,079)
Income Tax Expense (Benefit)	590		190		(140)		—		640
Net (Loss) Income	$	(13,402)	$	433	$	(13,719)	$	12,969	$	(13,719)

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following table presents a summary of intangible assets subject to amortization at the dates indicated.

	September 30, 2021								December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
(Dollars in thousands)
Core Deposit Intangible	$	14,103	$	(8,386)	$	(1,178)	$	4,539	$	14,103	$	(7,047)	$	7,056
Customer List	1,800		(599)		—		1,201		1,800		(457)		1,343
Total Intangible Assets	$	15,903	$	(8,985)	$	(1,178)	$	5,740	$	15,903	$	(7,504)	$	8,399

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense of intangible assets in subsequent fiscal years is as follows as of September 30, 2021.

	Amount
(Dollars in thousands)
Remaining in 2021	$	445
2022	1,782
2023	1,782
2024	1,147
2025	189
2026 and Thereafter	395
Total Estimated Intangible Asset Amortization Expense	$	5,740

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Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2021

Transfers and Servicing [Abstract]

Schedule of Servicing Assets at Fair Value

The following table presents MSR activity and net carrying values for the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(Dollars in thousands)
Mortgage Servicing Rights:
Balance, Beginning of Period	$	902	$	1,032	$	1,029	$	1,001
Additions	32		73		64		210
Amortization	(70)		(71)		(229)		(177)
Balance, End of Period	$	864	$	1,034	$	864	$	1,034
Valuation Allowance:
Balance, Beginning of Period	$	(213)	$	(340)	$	(373)	$	(71)
Valuation Allowance Adjustment	82		—		242		(269)
Balance, End of Period	$	(131)	$	(340)	$	(131)	$	(340)
Mortgage Servicing Rights, Net Carrying Value	$	733	$	694	$	733	$	694

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Summary of Significant Accounting Policies - Narrative (Details) - branch	Sep. 30, 2021	Jun. 30, 2021
Real Estate Properties [Line Items]
Number of branches		16
Pennsylvania
Real Estate Properties [Line Items]
Number of branches	11
West Virginia
Real Estate Properties [Line Items]
Number of branches	5

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Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 10, 2021 USD ($)	Sep. 30, 2021 USD ($) branch	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) branch	Sep. 30, 2020 USD ($)	Jun. 30, 2021 branch
Discontinued Operations and Disposal Groups [Abstract]
Number of branches consolidated | branch		6		6		6
Number of branches | branch						16
Premium payment percentage on assumed deposits				5.00%
Number of branches divested | branch		2		2
Number of branches written down to fair value of land | branch		3		3
Number branches written down to appraised value | branch		2		2
Number of branches consolidated and leased | branch		1		1		1
Premised and equipment discount upon sale | $				$ 338
Charges on premises and equipment | $		$ 2	$ 884	2,270	$ 884
Write down of fixed assets | $				2,300
Restructuring-related and other expenses | $		1,300		6,300
Impairment of intangible assets | $	$ 1,200			1,178	$ 0
Contracted services, severance, lease impairment, professional and data processing fees and legal and other expenses | $		$ 1,300		$ 2,900

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Impairment of Long-Lived Assets and Assets and Liabilities of Branches Held for Sale - Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Premises and Equipment Held for Sale	$ 795	$ 0
Held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans Held for Sale	6,498
Premises and Equipment Held for Sale	795
Non-Interest Bearing Demand Deposits	15,070
Interest Bearing Demand Deposits	31,502
Money Market Accounts	17,578
Savings Accounts	20,803
Time Deposits	17,694
Total Deposits Held for Sale	102,647
Held for sale | Real Estate | Residential
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans Held for Sale	2,290
Held for sale | Real Estate | Commercial
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans Held for Sale	2,911
Held for sale | Commercial and Industrial
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans Held for Sale	592
Held for sale | Consumer
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans Held for Sale	252
Held for sale | Other
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loans Held for Sale	$ 453

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Earnings (Loss) Per Share - Narrative (Details)	9 Months Ended
	Sep. 30, 2021 shares
Earnings Per Share [Abstract]
Incremental common shares attributable to dilutive effect of conversion of debt securities (in shares)	0

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Earnings (Loss) Per Share - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income (Loss)	$ 1,983	$ (17,395)	$ 4,605	$ (13,719)
Weighted-Average Basic Common Shares Outstanding (in shares)	5,373,032	5,395,342	5,412,989	5,406,710
Dilutive Effect of Common Stock Equivalents (Stock Options and Restricted Stock) (in shares)	17,096	0	7,803	0
Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding (in shares)	5,390,128	5,395,342	5,420,792	5,406,710
Earnings (Loss) Per Share:
Basic (in dollars per share)	$ 0.37	$ (3.22)	$ 0.85	$ (2.54)
Diluted (in dollars per share)	$ 0.37	$ (3.22)	$ 0.85	$ (2.54)

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Earnings (Loss) Per Share - Schedule of Computation of Diluted Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	71,741	220,271	199,641	220,271
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	23,000	49,130	32,360	49,130

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Securities - Amortized Cost and Fair Value of Investment Securities Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Available-for-Sale Debt Securities:
Total	$ 217,085	$ 138,566
Gross Unrealized Gains	3,269	4,926
Gross Unrealized Losses	(1,825)	(595)
Fair Value	218,529	142,897
Equity Securities:
Total Equity Securities	2,822	2,503
Total Securities	221,351	145,400
U.S. Government Agencies
Available-for-Sale Debt Securities:
Total	50,992	41,994
Gross Unrealized Gains	0	12
Gross Unrealized Losses	(1,054)	(595)
Fair Value	49,938	41,411
Obligations of States and Political Subdivisions
Available-for-Sale Debt Securities:
Total	18,356	20,672
Gross Unrealized Gains	1,064	1,321
Gross Unrealized Losses	0	0
Fair Value	19,420	21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises
Available-for-Sale Debt Securities:
Total	140,255	75,900
Gross Unrealized Gains	2,205	3,593
Gross Unrealized Losses	(770)	0
Fair Value	141,690	79,493
Corporate Debt
Available-for-Sale Debt Securities:
Total	7,482
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Fair Value	7,481
Mutual Funds
Equity Securities:
Total Equity Securities	999	1,019
Other
Equity Securities:
Total Equity Securities	$ 1,823	$ 1,484

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Securities - Gross Unrealized Losses and Fair Value by Investment Category and Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2021 USD ($) security	Dec. 31, 2020 USD ($) security
Less than 12 months
Number of Securities | security	18	7
Fair Value	$ 94,842	$ 32,399
Gross Unrealized Losses	$ (1,010)	$ (595)
12 Months or Greater
Number of Securities | security	5	0
Fair Value	$ 24,179	$ 0
Gross Unrealized Losses	$ (815)	$ 0
Total
Number of Securities | security	23	7
Fair Value	$ 119,021	$ 32,399
Gross Unrealized Losses	$ (1,825)	$ (595)
U.S. Government Agencies
Less than 12 months
Number of Securities | security	7	7
Fair Value	$ 25,759	$ 32,399
Gross Unrealized Losses	$ (239)	$ (595)
12 Months or Greater
Number of Securities | security	5	0
Fair Value	$ 24,179	$ 0
Gross Unrealized Losses	$ (815)	$ 0
Total
Number of Securities | security	12	7
Fair Value	$ 49,938	$ 32,399
Gross Unrealized Losses	$ (1,054)	$ (595)
Mortgage-Backed Securities - Government-Sponsored Enterprises
Less than 12 months
Number of Securities | security	10
Fair Value	$ 64,133
Gross Unrealized Losses	$ (770)
12 Months or Greater
Number of Securities | security	0
Fair Value	$ 0
Gross Unrealized Losses	$ 0
Total
Number of Securities | security	10
Fair Value	$ 64,133
Gross Unrealized Losses	$ (770)
Corporate Debt
Less than 12 months
Number of Securities | security	1
Fair Value	$ 4,950
Gross Unrealized Losses	$ (1)
12 Months or Greater
Number of Securities | security	0
Fair Value	$ 0
Gross Unrealized Losses	$ 0
Total
Number of Securities | security	1
Fair Value	$ 4,950
Gross Unrealized Losses	$ (1)

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Securities - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Investment securities, available-for-sale	$ 184.4	$ 119.7

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Securities - Maturities of Investment Securities Available-for-sale and Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Amortized Cost
Due in One Year or Less	$ 2,583
Due after One Year through Five Years	4,394
Due after Five Years through Ten Years	70,946
Due after Ten Years	139,162
Total	217,085	$ 138,566
Fair Value
Due in One Year or Less	2,620
Due after One Year through Five Years	4,404
Due after Five Years through Ten Years	71,437
Due after Ten Years	140,068
Total	$ 218,529	$ 142,897

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Securities - Gains (Losses) of Sales of Available-for-sale Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Securities
Gross Realized Gain	$ 0	$ 0	$ 225	$ 489
Gross Realized Loss	0	0	0	0
Net Gain on Debt Securities	0	0	225	489
Equity Securities
Net Unrealized Gain (Loss) Recognized on Securities Held	18	(59)	251	(469)
Net Realized Gain Recognized on Securities Sold	6	0	6	0
Net Gain (Loss) on Equity Securities	24	(59)	257	(469)
Net Gain (Loss) on Securities	$ 24	$ (59)	$ 482	$ 20

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Loans and Allowance for Loan Losses - Classification of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 1,001,599		$ 1,044,753
Allowance for Loan Losses	(11,581)	$ (11,544)	(12,771)	$ (13,780)	$ (12,648)	$ (9,867)
Loans, Net	$ 990,018		$ 1,031,982
Percent	100.00%		100.00%
Real Estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 317,373		$ 344,142
Allowance for Loan Losses	$ (1,492)	(1,588)	$ (2,249)	(2,172)	(2,688)	(2,023)
Percent	31.70%		32.90%
Real Estate | Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 379,621		$ 373,555
Allowance for Loan Losses	$ (5,929)	(5,582)	$ (6,010)	(6,872)	(5,160)	(3,210)
Percent	37.90%		35.90%
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 78,075		$ 72,600
Allowance for Loan Losses	$ (1,065)	(1,136)	$ (889)	(891)	(820)	(285)
Percent	7.80%		6.90%
Commercial and Industrial
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 102,360		$ 126,813
Allowance for Loan Losses	$ (1,142)	(1,152)	$ (1,423)	(1,742)	(1,566)	(2,412)
Percent	10.20%		12.10%
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 112,087		$ 113,854
Allowance for Loan Losses	$ (953)	(941)	$ (1,283)	(1,359)	(1,714)	(1,417)
Percent	11.20%		10.90%
Other
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 12,083		$ 13,789
Allowance for Loan Losses	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Percent	1.20%		1.30%

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Loans and Allowance for Loan Losses - Loans Held-for-sale (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		$ 17,407		$ 17,407		$ 0
Charge-offs		19	$ 114	139	$ 275
Held for sale
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale						0
Held for sale | Held For Sale Agreement With Citizens Bank
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		6,500		6,500
Held for sale | Originated And Intended For Sale In Secondary Market
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		7,400		7,400
Held for sale | Nonaccrual And Substandard Rated Commercial Real Estate Loan
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		3,600		3,600
Gain (Loss) on Sale of Financing Receivable						$ 931
Held for sale | Nonaccrual And Substandard Rated Commercial Real Estate Loan | Forecast
Loans and Leases Receivable Disclosure [Line Items]
Gain (Loss) on Sale of Financing Receivable	$ 897
Real Estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		9,640		9,640
Charge-offs		0	11	0	36
Real Estate | Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		6,470		6,470
Charge-offs		0	0	0	0
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		0		0
Charge-offs		0	0	0	0
Commercial and Industrial
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		592		592
Charge-offs		0	0	0	0
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		252		252
Charge-offs		19	103	139	239
Other
Loans and Leases Receivable Disclosure [Line Items]
Loans Held for Sale		453		453
Charge-offs		$ 0	$ 0	$ 0	$ 0

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Loans and Allowance for Loan Losses - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) loan	Sep. 30, 2020 USD ($) loan	Sep. 30, 2021 USD ($) loan	Sep. 30, 2020 USD ($) loan	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($) loan	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	$ 1,001,599,000		$ 1,001,599,000			$ 1,044,753,000
Total unamortized net deferred loan fees	2,100,000		2,100,000			2,000,000
Nonaccrual loan related to a commercial real estate loan	17,407,000		17,407,000			0
Financing receivable, nonaccrual, interest income	33,000	$ 20,000	136,000	$ 59,000
Mortgage loans in process of foreclosure, amount	$ 775,000		$ 775,000			$ 806,000
Financing receivable, TDRs, number of contracts | loan	14		14			17
Financing receivable, troubled debt restructuring	$ 2,900,000		$ 2,900,000			$ 4,200,000
Financing receivable, troubled debt restructuring, subsequent default, number of contracts | loan	0	0	0	0
Increase (decrease) in impaired financing receivable, recorded investment			$ (26,900,000)
Allowance for Loan Losses	$ 11,581,000	$ 13,780,000	11,581,000	$ 13,780,000	$ 11,544,000	12,771,000	$ 12,648,000	$ 9,867,000
(Recovery) Provision for Loan Losses	0	1,200,000	(1,200,000)	4,000,000
Increase (decrease) in net reservable loans			(20,800,000)
Reclassification to held-for-sale			17,400,000
Held for sale
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loan related to a commercial real estate loan						$ 0
Held for sale | Originated And Intended For Sale In Secondary Market
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loan related to a commercial real estate loan	7,400,000		7,400,000
Held for sale | Nonaccrual And Substandard Rated Commercial Real Estate Loan
Loans and Leases Receivable Disclosure [Line Items]
Nonaccrual loan related to a commercial real estate loan	$ 3,600,000		$ 3,600,000
Non-TDR Loan Modifications, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Number of loans in forbearance | loan	0		0			31
Financing receivable, before allowance for credit loss, in forbearance	$ 0		$ 0			$ 24,100,000
Hotel
Loans and Leases Receivable Disclosure [Line Items]
Secured loan	2,000,000		$ 2,000,000
COVID-19
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, non-TDR modification period, interest only payments			3 months
Financing receivable, non-TDR modification period, maturity date extension			3 months
COVID-19 | Minimum
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, non-TDR modification period, deferred payments			3 months
COVID-19 | Maximum
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, non-TDR modification period, deferred payments			6 months
Unlikely to be Collected Financing Receivable
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	0		$ 0			0
Commercial and Industrial
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	102,360,000		102,360,000			126,813,000
Nonaccrual loan related to a commercial real estate loan	592,000		592,000
Allowance for Loan Losses	1,142,000	1,742,000	1,142,000	1,742,000	1,152,000	$ 1,423,000	1,566,000	2,412,000
(Recovery) Provision for Loan Losses	$ (21,000)	170,000	$ (314,000)	(691,000)
Commercial and Industrial | Non-TDR Loan Modifications, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Number of loans in forbearance | loan	0		0			5
Financing receivable, before allowance for credit loss, in forbearance	$ 0		$ 0			$ 1,219,000
Commercial and Industrial | First Draw And Second Draw Paycheck Protection Program, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, number of contracts | loan			218
Financing receivable, before allowance for credit loss	34,600,000		$ 34,600,000
Financing receivable, unamortized loan fee	1,300,000		1,300,000
Commercial and Industrial | Paycheck Protection Program, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	32,700,000		32,700,000			55,100,000
Financing receivable, unamortized loan fee	1,000,000.0		1,000,000.0			1,100,000
Financing receivable, before allowance for credits loss, period increase (decrease)			(22,400,000)
Amortization of deferred loan origination fees, net	380,000		1,400,000
Commercial and Industrial | Paycheck Protection Program, CARES Act | Construction and Specialty-Trade Contractors Sector
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	9,300,000		9,300,000
Commercial and Industrial | Paycheck Protection Program, CARES Act | Healthcare Sector
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	5,900,000		5,900,000
Commercial and Industrial | Paycheck Protection Program, CARES Act | Professional and Technical Services Sector
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	4,700,000		4,700,000
Commercial and Industrial | Paycheck Protection Program, CARES Act | Manufacturing Sector
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	2,500,000		2,500,000
Commercial and Industrial | Paycheck Protection Program, CARES Act | Restaurant and Food Service Sector
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	3,500,000		3,500,000
Commercial and Industrial | Paycheck Protection Program, CARES Act | Wholesale Trade Sector
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	1,800,000		1,800,000
Real Estate | Commercial
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	379,621,000		379,621,000			373,555,000
Nonaccrual loan related to a commercial real estate loan	$ 6,470,000		$ 6,470,000
Financing receivable, modifications, number of contracts paid off | loan	0		1
Financing receivable, modifications, troubled debt restructuring, paid off			$ 698,000
Allowance for Loan Losses	$ 5,929,000	6,872,000	5,929,000	6,872,000	5,582,000	$ 6,010,000	5,160,000	3,210,000
(Recovery) Provision for Loan Losses	$ 347,000	1,711,000	$ (81,000)	3,634,000
Real Estate | Commercial | Non-TDR Loan Modifications, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Number of loans in forbearance | loan	0		0			8
Financing receivable, before allowance for credit loss, in forbearance	$ 0		$ 0			$ 19,818,000
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	78,075,000		78,075,000			72,600,000
Nonaccrual loan related to a commercial real estate loan	0		0
Allowance for Loan Losses	1,065,000	891,000	1,065,000	891,000	1,136,000	$ 889,000	820,000	285,000
(Recovery) Provision for Loan Losses	$ (71,000)	$ 71,000	$ 176,000	$ 606,000
Real Estate | Construction | Non-TDR Loan Modifications, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Number of loans in forbearance | loan	0		0			1
Financing receivable, before allowance for credit loss, in forbearance	$ 0		$ 0			$ 1,958,000
Real Estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, before allowance for credit loss	317,373,000		317,373,000			344,142,000
Nonaccrual loan related to a commercial real estate loan	9,640,000		$ 9,640,000
Financing receivable, modifications, number of contracts paid off | loan		0	1	1
Financing receivable, modifications, troubled debt restructuring, paid off			$ 3,000	$ 60,000
Allowance for Loan Losses	1,492,000	$ 2,172,000	1,492,000	2,172,000	$ 1,588,000	$ 2,249,000	$ 2,688,000	$ 2,023,000
(Recovery) Provision for Loan Losses	$ (98,000)	$ (506,000)	$ (772,000)	$ 180,000
Real Estate | Residential | Non-TDR Loan Modifications, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Number of loans in forbearance | loan	0		0			4
Financing receivable, before allowance for credit loss, in forbearance	$ 0		$ 0			$ 749,000
Real Estate | Commercial and Industrial
Loans and Leases Receivable Disclosure [Line Items]
Financing receivable, modifications, number of contracts paid off | loan			1
Financing receivable, modifications, troubled debt restructuring, paid off			$ 8,000

XML

Loans and Allowance for Loan Losses - Internal Risk Rating System (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 1,001,599	$ 1,044,753
Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	932,038	970,587
Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	52,153	46,515
Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	16,872	27,042
Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	536	609
Real Estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Loans	317,373	344,142
Real Estate | Residential | Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	314,266	340,573
Real Estate | Residential | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	869	1,115
Real Estate | Residential | Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	2,238	2,454
Real Estate | Residential | Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	0	0
Real Estate | Commercial
Loans and Leases Receivable Disclosure [Line Items]
Loans	379,621	373,555
Real Estate | Commercial | Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	339,193	320,358
Real Estate | Commercial | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	28,018	37,482
Real Estate | Commercial | Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	12,410	15,715
Real Estate | Commercial | Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	0	0
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Loans	78,075	72,600
Real Estate | Construction | Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	66,649	68,343
Real Estate | Construction | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	10,785	53
Real Estate | Construction | Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	641	4,204
Real Estate | Construction | Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	0	0
Commercial and Industrial
Loans and Leases Receivable Disclosure [Line Items]
Loans	102,360	126,813
Commercial and Industrial | Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	87,901	113,797
Commercial and Industrial | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	12,410	7,787
Commercial and Industrial | Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	1,513	4,620
Commercial and Industrial | Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	536	609
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans	112,087	113,854
Consumer | Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	112,017	113,805
Consumer | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	0	0
Consumer | Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	70	49
Consumer | Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	0	0
Other
Loans and Leases Receivable Disclosure [Line Items]
Loans	12,083	13,789
Other | Pass
Loans and Leases Receivable Disclosure [Line Items]
Loans	12,012	13,711
Other | Special Mention
Loans and Leases Receivable Disclosure [Line Items]
Loans	71	78
Other | Substandard
Loans and Leases Receivable Disclosure [Line Items]
Loans	0	0
Other | Doubtful
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Loans by Aging Categories (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Loans	$ 1,001,599	$ 1,044,753
Non- Accrual	8,555	10,889
Loans Current
Financing Receivable, Past Due [Line Items]
Loans	991,929	1,029,036
Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,115	4,828
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,097	3,704
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	18	1,116
90 Days Or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	8
Real Estate | Residential
Financing Receivable, Past Due [Line Items]
Loans	317,373	344,142
Non- Accrual	1,636	1,841
Real Estate | Commercial
Financing Receivable, Past Due [Line Items]
Loans	379,621	373,555
Non- Accrual	5,306	7,102
Real Estate | Construction
Financing Receivable, Past Due [Line Items]
Loans	78,075	72,600
Non- Accrual	0	0
Real Estate | Loans Current | Residential
Financing Receivable, Past Due [Line Items]
Loans	315,124	339,067
Real Estate | Loans Current | Commercial
Financing Receivable, Past Due [Line Items]
Loans	374,315	365,712
Real Estate | Loans Current | Construction
Financing Receivable, Past Due [Line Items]
Loans	78,075	72,600
Real Estate | Total Past Due | Residential
Financing Receivable, Past Due [Line Items]
Loans	613	3,234
Real Estate | Total Past Due | Commercial
Financing Receivable, Past Due [Line Items]
Loans	0	741
Real Estate | Total Past Due | Construction
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate | 30-59 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Loans	613	2,919
Real Estate | 30-59 Days Past Due | Commercial
Financing Receivable, Past Due [Line Items]
Loans	0	1
Real Estate | 30-59 Days Past Due | Construction
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate | 60-89 Days Past Due | Residential
Financing Receivable, Past Due [Line Items]
Loans	0	315
Real Estate | 60-89 Days Past Due | Commercial
Financing Receivable, Past Due [Line Items]
Loans	0	740
Real Estate | 60-89 Days Past Due | Construction
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate | 90 Days Or More Past Due | Residential
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate | 90 Days Or More Past Due | Commercial
Financing Receivable, Past Due [Line Items]
Loans	0	0
Real Estate | 90 Days Or More Past Due | Construction
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and Industrial
Financing Receivable, Past Due [Line Items]
Loans	102,360	126,813
Non- Accrual	1,543	1,897
Commercial and Industrial | Loans Current
Financing Receivable, Past Due [Line Items]
Loans	100,817	124,916
Commercial and Industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and Industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and Industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial and Industrial | 90 Days Or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer
Financing Receivable, Past Due [Line Items]
Loans	112,087	113,854
Non- Accrual	70	49
Consumer | Loans Current
Financing Receivable, Past Due [Line Items]
Loans	111,515	112,952
Consumer | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	502	853
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	484	784
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	18	61
Consumer | 90 Days Or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	8
Other
Financing Receivable, Past Due [Line Items]
Loans	12,083	13,789
Non- Accrual	0	0
Other | Loans Current
Financing Receivable, Past Due [Line Items]
Loans	12,083	13,789
Other | Total Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Other | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Other | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Other | 90 Days Or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Nonaccrual TDRs (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	$ 8,555	$ 10,889
Total Troubled Debt Restructurings, Accruing	2,900	4,200
Total Loans	1,001,599	1,044,753
TOTAL ASSETS	$ 1,474,818	$ 1,416,720
Nonperforming Loans to Total Loans	1.09%	1.39%
Nonperforming Assets to Total Assets	0.74%	1.04%
Nonperforming Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	$ 8,555	$ 10,889
Total Accruing Loans Past Due 90 Days or More	0	8
Total Nonaccrual Loans and Accruing Loans Past Due 90 Days or More	8,555	10,897
Total Troubled Debt Restructurings, Accruing	2,352	3,591
Total Loans	10,907	14,488
Total Other Real Estate Owned	36	208
TOTAL ASSETS	10,943	14,696
Real Estate | Residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	1,636	1,841
Total Loans	317,373	344,142
Real Estate | Residential | Nonperforming Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	1,636	1,841
Total Troubled Debt Restructurings, Accruing	622	650
Total Other Real Estate Owned	36	0
Real Estate | Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	5,306	7,102
Total Loans	379,621	373,555
Real Estate | Commercial | Nonperforming Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	5,306	7,102
Total Troubled Debt Restructurings, Accruing	1,713	2,861
Total Other Real Estate Owned	0	208
Real Estate | Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	0	0
Total Loans	78,075	72,600
Real Estate | Construction | Nonperforming Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	0	0
Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	1,543	1,897
Total Loans	102,360	126,813
Commercial and Industrial | Nonperforming Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	1,543	1,897
Total Troubled Debt Restructurings, Accruing	17	80
Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	70	49
Total Loans	112,087	113,854
Consumer | Nonperforming Financial Instruments
Financing Receivable, Troubled Debt Restructuring [Line Items]
Non- Accrual	70	49
Total Accruing Loans Past Due 90 Days or More	$ 0	$ 8

XML

Loans and Allowance for Loan Losses - Loans in Forbearance (Details) - Non-TDR Loan Modifications, CARES Act $ in Thousands	Sep. 30, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Loans and Leases Receivable Disclosure [Line Items]
Number of Loans | loan	0	31
Amount | $	$ 0	$ 24,100
% of Portfolio	0.00%	2.30%
Real Estate | Residential
Loans and Leases Receivable Disclosure [Line Items]
Number of Loans | loan	0	4
Amount | $	$ 0	$ 749
% of Portfolio	0.00%	0.20%
Real Estate | Commercial
Loans and Leases Receivable Disclosure [Line Items]
Number of Loans | loan	0	8
Amount | $	$ 0	$ 19,818
% of Portfolio	0.00%	5.30%
Real Estate | Construction
Loans and Leases Receivable Disclosure [Line Items]
Number of Loans | loan	0	1
Amount | $	$ 0	$ 1,958
% of Portfolio	0.00%	2.70%
Commercial and Industrial
Loans and Leases Receivable Disclosure [Line Items]
Number of Loans | loan	0	5
Amount | $	$ 0	$ 1,219
% of Portfolio	0.00%	1.00%
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Number of Loans | loan	0	13
Amount | $	$ 0	$ 356
% of Portfolio	0.00%	0.30%

XML

Loans and Allowance for Loan Losses - Loans Classified as TDRs (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 loan	Sep. 30, 2020 USD ($) loan	Sep. 30, 2021 loan	Sep. 30, 2020 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | loan	0	2	0	3
Pre- Modification Outstanding Recorded Investment		$ 542		$ 776
Post- Modification Outstanding Recorded Investment		557		791
Related Allowance		$ 0		$ 0
Real Estate | Residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | loan				1
Pre- Modification Outstanding Recorded Investment				$ 234
Post- Modification Outstanding Recorded Investment				234
Related Allowance				$ 0
Real Estate | Commercial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | loan		1		1
Pre- Modification Outstanding Recorded Investment		$ 504		$ 504
Post- Modification Outstanding Recorded Investment		519		519
Related Allowance		$ 0		$ 0
Commercial and Industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Contracts | loan		1		1
Pre- Modification Outstanding Recorded Investment		$ 38		$ 38
Post- Modification Outstanding Recorded Investment		38		38
Related Allowance		$ 0		$ 0

XML

Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
With No Related Allowance Recorded:
Recorded Investment	$ 16,953	$ 40,548
Unpaid Principal Balance	17,457	41,784
Average Recorded Investment	18,089	46,076
Interest Income Recognized	310	1,712
With A Related Allowance Recorded:
Recorded Investment	272	3,593
Related Allowance	199	649
Unpaid Principal Balance	272	3,593
Average Recorded Investment	473	3,699
Interest Income Recognized	16	129
Total Impaired Loans:
Recorded Investment	17,225	44,141
Unpaid Principal Balance	17,729	45,377
Average Recorded Investment	18,562	49,775
Interest Income Recognized	326	1,841
Real Estate | Residential
With No Related Allowance Recorded:
Recorded Investment	1,146	1,183
Unpaid Principal Balance	1,150	1,187
Average Recorded Investment	1,165	1,194
Interest Income Recognized	35	46
With A Related Allowance Recorded:
Recorded Investment	0	0
Related Allowance	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Total Impaired Loans:
Recorded Investment	1,146	1,183
Unpaid Principal Balance	1,150	1,187
Average Recorded Investment	1,165	1,194
Interest Income Recognized	35	46
Real Estate | Commercial
With No Related Allowance Recorded:
Recorded Investment	13,100	31,865
Unpaid Principal Balance	13,315	32,887
Average Recorded Investment	13,361	37,443
Interest Income Recognized	235	1,418
With A Related Allowance Recorded:
Recorded Investment	272	1,524
Related Allowance	199	293
Unpaid Principal Balance	272	1,524
Average Recorded Investment	473	1,585
Interest Income Recognized	16	72
Total Impaired Loans:
Recorded Investment	13,372	33,389
Unpaid Principal Balance	13,587	34,411
Average Recorded Investment	13,834	39,028
Interest Income Recognized	251	1,490
Real Estate | Construction
With No Related Allowance Recorded:
Recorded Investment	641	4,204
Unpaid Principal Balance	641	4,204
Average Recorded Investment	641	4,013
Interest Income Recognized	16	159
With A Related Allowance Recorded:
Recorded Investment	0	0
Related Allowance	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Total Impaired Loans:
Recorded Investment	641	4,204
Unpaid Principal Balance	641	4,204
Average Recorded Investment	641	4,013
Interest Income Recognized	16	159
Commercial and Industrial
With No Related Allowance Recorded:
Recorded Investment	2,066	3,296
Unpaid Principal Balance	2,351	3,506
Average Recorded Investment	2,922	3,426
Interest Income Recognized	24	89
With A Related Allowance Recorded:
Recorded Investment	0	2,069
Related Allowance	0	356
Unpaid Principal Balance	0	2,069
Average Recorded Investment	0	2,114
Interest Income Recognized	0	57
Total Impaired Loans:
Recorded Investment	2,066	5,365
Unpaid Principal Balance	2,351	5,575
Average Recorded Investment	2,922	5,540
Interest Income Recognized	$ 24	$ 146

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Loans and Allowance for Loan Losses - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 11,544	$ 12,648	$ 12,771	$ 9,867
Charge-offs	(19)	(114)	(139)	(275)
Recoveries	56	46	149	188
Provision (Recovery) For Loan Losses	0	1,200	(1,200)	4,000
Ending balance	11,581	13,780	11,581	13,780
Individually Evaluated for Impairment	199	2,855	199	2,855	$ 649
Collectively Evaluated for Potential Impairment	11,382	10,925	11,382	10,925	12,122
Real Estate | Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,588	2,688	2,249	2,023
Charge-offs	0	(11)	0	(36)
Recoveries	2	1	15	5
Provision (Recovery) For Loan Losses	(98)	(506)	(772)	180
Ending balance	1,492	2,172	1,492	2,172
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	1,492	2,172	1,492	2,172	2,249
Real Estate | Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,582	5,160	6,010	3,210
Charge-offs	0	0	0	0
Recoveries	0	1	0	28
Provision (Recovery) For Loan Losses	347	1,711	(81)	3,634
Ending balance	5,929	6,872	5,929	6,872
Individually Evaluated for Impairment	199	2,248	199	2,248	293
Collectively Evaluated for Potential Impairment	5,730	4,624	5,730	4,624	5,717
Real Estate | Construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,136	820	889	285
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recovery) For Loan Losses	(71)	71	176	606
Ending balance	1,065	891	1,065	891
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	1,065	891	1,065	891	889
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,152	1,566	1,423	2,412
Charge-offs	0	0	0	0
Recoveries	11	6	33	21
Provision (Recovery) For Loan Losses	(21)	170	(314)	(691)
Ending balance	1,142	1,742	1,142	1,742
Individually Evaluated for Impairment	0	607	0	607	356
Collectively Evaluated for Potential Impairment	1,142	1,135	1,142	1,135	1,067
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	941	1,714	1,283	1,417
Charge-offs	(19)	(103)	(139)	(239)
Recoveries	43	38	101	134
Provision (Recovery) For Loan Losses	(12)	(290)	(292)	47
Ending balance	953	1,359	953	1,359
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	953	1,359	953	1,359	1,283
Other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	0	0	0	0
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recovery) For Loan Losses	0	0	0	0
Ending balance	0	0	0	0
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	0	0	0	0	0
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,145	700	917	520
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (Recovery) For Loan Losses	(145)	44	83	224
Ending balance	1,000	744	1,000	744
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	$ 1,000	$ 744	$ 1,000	$ 744	$ 917

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Loans and Allowance for Loan Losses - Loans Summarized by Individually Evaluated for Impairment and Collectively Evaluated for Potential Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	$ 17,225	$ 44,141
Collectively Evaluated for Potential Impairment	984,374	1,000,612
Total Loans	1,001,599	1,044,753
Real Estate | Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	1,146	1,183
Collectively Evaluated for Potential Impairment	316,227	342,959
Total Loans	317,373	344,142
Real Estate | Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	13,372	33,389
Collectively Evaluated for Potential Impairment	366,249	340,166
Total Loans	379,621	373,555
Real Estate | Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	641	4,204
Collectively Evaluated for Potential Impairment	77,434	68,396
Total Loans	78,075	72,600
Commercial and Industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	2,066	5,365
Collectively Evaluated for Potential Impairment	100,294	121,448
Total Loans	102,360	126,813
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	112,087	113,854
Total Loans	112,087	113,854
Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	12,083	13,789
Total Loans	$ 12,083	$ 13,789

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Loans and Allowance for Loan Losses - Accretable Discount on Loans Acquired at Fair Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	$ 1,194
Accretable Yield	(385)
Ending balance	$ 809

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Time Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deposits [Abstract]
Time Deposits, One Year or Less	$ 68,228
Time Deposits, Over One Through Two Years	58,693
Time Deposits, Over Two Through Three Years	10,758
Time Deposits, Over Three Through Four Years	11,362
Time Deposits, Over Four Through Five Years	9,645
Time Deposits, Over Five Years	3,735
Time Deposits, Total	162,421
Time Deposit Maturities Held for Sale, One Year or Less	8,560
Time Deposit Maturities Held for Sale, Over One Through Two Years	4,346
Time Deposit Maturities Held for Sale, Over Two Through Three Years	1,034
Time Deposit Maturities Held for Sale, Over Three Through Four Years	2,415
Time Deposit Maturities Held for Sale, Over Four Through Five Years	1,143
Time Deposit Maturities Held for Sale, Over Five Years	196
Time Deposit Maturities Held For Sale, Total	17,694
Time Deposits, Net, One Year or Less	59,668
Time Deposits, Net, Over One Through Two Years	54,347
Time Deposits, Net, Over Two Through Three Years	9,724
Time Deposits, Net, Over Three Through Four Years	8,947
Time Deposits, Net, Over Four Through Five Years	8,502
Time Deposits, Net, Over Five Years	3,539
Time Deposits, Net, Total	$ 144,727	$ 190,013

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Time Deposits - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deposits [Abstract]
Time deposits, at or above FDIC insurance limit	$ 49,100	$ 59,200
Deposit liabilities reclassified as loans receivable	$ 176	$ 231

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Short-Term Borrowings - Federal Funds Purchased and Short-term Borrowings (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Deposits Held for Sale	$ 102,647	$ 0
Amount
Balance at Period End	42,623	41,055
Securities Sold under Agreements to Repurchase
Short-term Debt [Line Items]
Deposits Held for Sale	10,700
Amount
Balance at Period End	42,623	41,055
Average Balance Outstanding During the Period	43,745	37,819
Maximum Amount Outstanding at any Month End	$ 52,777	$ 46,123
Weighted Average Rate
Balance at Period End	0.16%	0.21%
Average Balance Outstanding During the Period	0.22%	0.36%
Securities Collaterizing the Agreements at Period-End:
Carrying Value	$ 56,351	$ 46,312
Market Value	$ 56,412	$ 47,283

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Other Borrowed Funds - Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Amount
Due in One Year	$ 3,000	$ 2,000
Due After One Year to Two Years	3,000	3,000
Due After Two Years to Three Years	0	3,000
Total	$ 6,000	$ 8,000
Weighted Average Rate
Due in One Year	2.23%	2.12%
Due After One Year to Two Years	2.41%	2.23%
Due After Two Years to Three Years	0.00%	2.41%
Weighted Average
Weighted Average Rate
Total	2.32%	2.27%

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Other Borrowed Funds - Narrative (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Federal Home Loan Bank, Advances [Line Items]
Federal home loan bank advances, maximum amount available	$ 420,400,000
Federal home loan bank advances, amount of available unused funds	351,300,000
Federal home loan bank advances, collateral pledged	564,100,000
Other commitments	169,634,000	$ 168,444,000
Standby Letters of Credit
Federal Home Loan Bank, Advances [Line Items]
Other commitments	60,600,000	$ 90,300,000
Federal Reserve Bank
Federal Home Loan Bank, Advances [Line Items]
Line of credit facility, maximum borrowing capacity	82,800,000
Debt instrument, collateral amount	124,900,000
Various Unaffiliated Banks
Federal Home Loan Bank, Advances [Line Items]
Long-term line of credit	0
Line of credit facility, maximum borrowing capacity	50,000,000
Variable Rate Line of Credit
Federal Home Loan Bank, Advances [Line Items]
Federal home loan bank advances, maximum amount available	150,000,000
Long-term line of credit	$ 0

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Fair Value Disclosure - Assets and Liabilities Reported Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	$ 218,529	$ 142,897
Total Equity Securities	2,822	2,503
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	218,529	142,897
Total Equity Securities	2,822	2,503
Total Securities	221,351	145,400
U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	49,938	41,411
Obligations of States and Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	19,420	21,993
Mortgage-Backed Securities - Government-Sponsored Enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	141,690	79,493
Corporate Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	7,481
Mutual Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Equity Securities	999	1,019
Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Equity Securities	1,823	1,484
Level 2 | U.S. Government Agencies | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	49,938	41,411
Level 2 | Obligations of States and Political Subdivisions | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	19,420	21,993
Level 2 | Mortgage-Backed Securities - Government-Sponsored Enterprises | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	141,690	79,493
Level 2 | Corporate Debt | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Securities	7,481	0
Level 1 | Mutual Funds | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Equity Securities	999	1,019
Level 1 | Other | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Equity Securities	$ 1,823	$ 1,484

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Fair Value Disclosure - Significant Unobservable Inputs Used in the Fair Value Measurements (Details) $ in Thousands	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)
Financial Assets:
Mortgage Servicing Rights	$ 733		$ 694
Level 3 | Fair Value, Nonrecurring
Financial Assets:
Impaired Loans Individually Assessed	73	$ 2,944
Mortgage Servicing Rights	$ 733	656
OREO		$ 34
Level 3 | Fair Value, Nonrecurring | Measurement Input, Comparability Adjustment | Weighted Average
Range
Impaired Loans Individually Assessed	0.500	0
Level 3 | Fair Value, Nonrecurring | Discount Rate | Weighted Average
Range
Mortgage Servicing Rights	0.101	0.100
Level 3 | Fair Value, Nonrecurring | Prepayment Speed | Weighted Average
Range
Mortgage Servicing Rights	0.199	0.187
Level 3 | Fair Value, Nonrecurring | Measurement Input, Cost to Sell | Weighted Average
Range
OREO		0
Level 3 | Fair Value, Nonrecurring | Appraisal of Collateral | Appraisal Adjustments | Minimum
Range
Impaired Loans Individually Assessed	0	0
OREO		0.10
Level 3 | Fair Value, Nonrecurring | Appraisal of Collateral | Appraisal Adjustments | Maximum
Range
Impaired Loans Individually Assessed	0.50	0.50
OREO		0.30
Level 3 | Fair Value, Nonrecurring | Discounted Cash Flow | Discount Rate | Minimum
Range
Mortgage Servicing Rights	0.09	0.09
Level 3 | Fair Value, Nonrecurring | Discounted Cash Flow | Discount Rate | Maximum
Range
Mortgage Servicing Rights	0.11	0.11
Level 3 | Fair Value, Nonrecurring | Discounted Cash Flow | Prepayment Speed | Minimum
Range
Mortgage Servicing Rights	0.10	0.12
Level 3 | Fair Value, Nonrecurring | Discounted Cash Flow | Prepayment Speed | Maximum
Range
Mortgage Servicing Rights	0.29	0.27

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Fair Value Disclosure - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Recorded Investment	$ 272	$ 3,593
Related Allowance	$ 199	$ 649

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Fair Value Disclosure - Estimated Fair Value of the Company's Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Financial Assets:
Total Securities	$ 218,529	$ 142,897
Mortgage Servicing Rights	733		$ 694
Carrying Value
Financial Assets:
Total Securities	221,351	145,400
Fair Value
Financial Assets:
Total Securities	221,351	145,400
Level 1 | Carrying Value
Financial Assets:
Interest Bearing	131,835	145,636
Non-Interest Bearing	41,688	15,275
Level 1 | Fair Value
Financial Assets:
Interest Bearing	131,835	145,636
Non-Interest Bearing	41,688	15,275
Level 2 | Carrying Value
Financial Assets:
Loans Held for Sale	17,407	0
Property and Equipment Held for Sale	795	0
Restricted Stock	3,451	3,984
Accrued Interest Receivable	3,355	3,872
Financial Liabilities:
Deposits Held for Sale	102,647	0
Deposits	1,185,156	1,224,569
Short-Term Borrowings	42,623	41,055
Other Borrowed Funds	6,000	8,000
Accrued Interest Payable	490	767
Level 2 | Fair Value
Financial Assets:
Loans Held for Sale	18,304	0
Property and Equipment Held for Sale	795	0
Restricted Stock	3,451	3,984
Accrued Interest Receivable	3,355	3,872
Financial Liabilities:
Deposits Held for Sale	107,779	0
Deposits	1,186,603	1,231,606
Short-Term Borrowings	42,623	41,055
Other Borrowed Funds	6,058	8,067
Accrued Interest Payable	490	767
Level 3 | Carrying Value
Financial Assets:
Loans, Net	990,018	1,031,982
Mortgage Servicing Rights	733	656
Level 3 | Fair Value
Financial Assets:
Loans, Net	1,022,160	1,073,633
Mortgage Servicing Rights	$ 733	$ 656

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Commitments and Contingent Liabilities - Unused and Available Credit Balances of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Total Commitments	$ 169,634	$ 168,444
Standby Letters of Credit
Loss Contingencies [Line Items]
Total Commitments	110	120
Performance Letters of Credit
Loss Contingencies [Line Items]
Total Commitments	2,764	2,947
Construction Mortgages
Loss Contingencies [Line Items]
Total Commitments	56,809	60,312
Personal Lines of Credit
Loss Contingencies [Line Items]
Total Commitments	7,132	6,930
Overdraft Protection Lines
Loss Contingencies [Line Items]
Total Commitments	5,895	6,287
Home Equity Lines of Credit
Loss Contingencies [Line Items]
Total Commitments	22,797	22,110
Commercial Lines of Credit
Loss Contingencies [Line Items]
Total Commitments	$ 74,127	$ 69,738

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Leases - Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Leases [Abstract]
Operating Lease Expense	$ 74	$ 118	$ 257	$ 353
Short-Term Lease Expense	8	0	25	0
Variable Lease Expense	8	10	24	28
Total Lease Expense	90	$ 128	306	$ 381
Operating Leases:
ROU Assets	$ 741		$ 741		$ 1,206
Weighted Average Lease Term in Years	7 years 1 month 28 days		7 years 1 month 28 days		6 years 11 months 12 days
Weighted Average Discount Rate	2.47%		2.47%		2.39%

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Leases - Maturity of Operating Lease (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Leases [Abstract]
Due in One Year	$ 309
Due After One Year to Two Years	178
Due After Two Years to Three Years	113
Due After Three Years to Four Years	90
Due After Four to Five Years	45
Due After Five Years	330
Total	1,065
Less: Present Value Discount	106
Lease Liabilities	$ 959

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Leases - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) branch	Sep. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) branch	Dec. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Number of branches consolidated | branch	6		6
Number of branches consolidated and leased | branch	1		1
ROU Assets	$ 741			$ 1,206
Lease Impairment	227	$ 0
Held for sale
Lessee, Lease, Description [Line Items]
ROU Assets			$ 0
Lease Impairment	$ 227

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Other Noninterest Expense - Components of Other Noninterest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Income and Expenses [Abstract]
Non-Employee Compensation	$ 184	$ 155	$ 473	$ 449
Printing and Supplies	55	125	218	365
Postage	86	61	265	176
Telephone	145	108	472	408
Charitable Contributions	45	32	80	98
Dues and Subscriptions	33	36	121	153
Loan Expenses	86	149	288	420
Meals and Entertainment	31	0	91	74
Travel	27	13	77	87
Training	5	10	29	24
Bank Assessment	46	44	134	132
Insurance	54	59	173	173
Miscellaneous	106	127	409	418
Total Other Noninterest Expense	$ 903	$ 919	$ 2,830	$ 2,977

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Segment and Related Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2021 segment
Segment Reporting [Abstract]
Number of operating segments	2

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Segment and Related Information - Reconciliation of Financial Data from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Assets	$ 1,474,818		$ 1,474,818			$ 1,416,720
Liabilities	1,343,831		1,343,831			1,282,190
Stockholders' Equity	130,987	$ 133,299	130,987	$ 133,299	$ 132,536	134,530	$ 152,392	$ 151,097
Interest and Dividend Income	10,786	11,656	32,594	35,712
Interest Expense	776	1,240	2,673	4,442
NET INTEREST AND DIVIDEND INCOME	10,010	10,416	29,921	31,270
(Recovery) Provision for Loan Losses	0	1,200	(1,200)	4,000
Net Interest and Dividend Income After Provision for Loan Losses	10,010	9,216	31,121	27,270
Noninterest Income	2,198	2,173	7,591	6,693
Noninterest Expense	9,773	28,968	32,890	47,042
Undistributed Net Income of Subsidiary	0	0	0	0
Income (Loss) Before Income Tax Expense (Benefit)	2,435	(17,579)	5,822	(13,079)
Income Tax Expense	452	(184)	1,217	640
Net Income (Loss)	1,983	(17,395)	4,605	(13,719)
Operating Segments | CB Financial Services, Inc.
Segment Reporting Information [Line Items]
Undistributed Net Income of Subsidiary	654	(18,694)	(4,096)
Operating Segments | Community Bank
Segment Reporting Information [Line Items]
Assets	1,474,626		1,474,626			1,416,132
Liabilities	1,352,005		1,352,005			1,287,148
Stockholders' Equity	122,621		122,621			128,984
Interest and Dividend Income	10,768	11,639	32,536	35,664
Interest Expense	776	1,240	2,673	4,442
NET INTEREST AND DIVIDEND INCOME	9,992	10,399	29,863	31,222
(Recovery) Provision for Loan Losses	0	1,200	(1,200)	4,000
Net Interest and Dividend Income After Provision for Loan Losses	9,992	9,199	31,063	27,222
Noninterest Income	975	1,208	3,319	3,760
Noninterest Expense	8,750	28,046	29,898	44,227
Undistributed Net Income of Subsidiary	124	73	710	433
Income (Loss) Before Income Tax Expense (Benefit)	2,341	(17,566)	5,194	(12,812)
Income Tax Expense	393	(166)	888	590
Net Income (Loss)	1,948	(17,400)	4,306	(13,402)
Operating Segments | Insurance Brokerage Services Segment | Exchange Underwriters, Inc.
Segment Reporting Information [Line Items]
Assets	4,656		4,656			5,379
Liabilities	1,672		1,672			2,325
Stockholders' Equity	2,984		2,984			3,054
Interest and Dividend Income	1	1	4	3
Interest Expense	0	0	0	0
NET INTEREST AND DIVIDEND INCOME	1	1	4	3
(Recovery) Provision for Loan Losses	0	0	0	0
Net Interest and Dividend Income After Provision for Loan Losses	1	1	4	3
Noninterest Income	1,195	1,024	3,995	3,426
Noninterest Expense	1,020	919	2,983	2,806
Undistributed Net Income of Subsidiary	0	0	0	0
Income (Loss) Before Income Tax Expense (Benefit)	176	106	1,016	623
Income Tax Expense	52	33	306	190
Net Income (Loss)	124	73	710	433
Operating Segments | Insurance Brokerage Services Segment | CB Financial Services, Inc.
Segment Reporting Information [Line Items]
Assets	130,994		130,994			134,546
Liabilities	7		7			16
Stockholders' Equity	130,987		130,987			134,530
Interest and Dividend Income	1,311	1,310	8,456	2,634
Interest Expense	0	0	0	0
NET INTEREST AND DIVIDEND INCOME	1,311	1,310	8,456	2,634
(Recovery) Provision for Loan Losses	0	0	0	0
Net Interest and Dividend Income After Provision for Loan Losses	1,311	1,310	8,456	2,634
Noninterest Income	28	(59)	277	(493)
Noninterest Expense	3	3	9	9
Undistributed Net Income of Subsidiary				(15,991)
Income (Loss) Before Income Tax Expense (Benefit)	1,990	(17,446)	4,628	(13,859)
Income Tax Expense	7	(51)	23	(140)
Net Income (Loss)	1,983	(17,395)	4,605	(13,719)
Net Eliminations
Segment Reporting Information [Line Items]
Assets	(135,458)		(135,458)			(139,337)
Liabilities	(9,853)		(9,853)			(7,299)
Stockholders' Equity	(125,605)		(125,605)			$ (132,038)
Interest and Dividend Income	(1,294)	(1,294)	(8,402)	(2,589)
Interest Expense	0	0	0	0
NET INTEREST AND DIVIDEND INCOME	(1,294)	(1,294)	(8,402)	(2,589)
(Recovery) Provision for Loan Losses	0	0	0	0
Net Interest and Dividend Income After Provision for Loan Losses	(1,294)	(1,294)	(8,402)	(2,589)
Noninterest Income	0	0	0	0
Noninterest Expense	0	0	0	0
Undistributed Net Income of Subsidiary	(778)	18,621	3,386	15,558
Income (Loss) Before Income Tax Expense (Benefit)	(2,072)	17,327	(5,016)	12,969
Income Tax Expense	0	0	0	0
Net Income (Loss)	$ (2,072)	$ 17,327	$ (5,016)	$ 12,969

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Intangible Assets - Summary of Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands		9 Months Ended
	Jun. 10, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		$ 15,903		$ 15,903
Accumulated Amortization		(8,985)		(7,504)
Impairment	$ (1,200)	(1,178)	$ 0
Intangible Assets, Net		5,740		8,399
Core Deposit Intangible
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		14,103		14,103
Accumulated Amortization		(8,386)		(7,047)
Impairment		(1,178)
Intangible Assets, Net		4,539		7,056
Customer List
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount		1,800		1,800
Accumulated Amortization		(599)		(457)
Impairment		0
Intangible Assets, Net		$ 1,201		$ 1,343

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Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining in 2021	$ 445
2022	1,782
2023	1,782
2024	1,147
2025	189
2026 and Thereafter	395
Net Carrying Value	$ 5,740	$ 8,399

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Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Mortgage Servicing Rights:
Beginning balance	$ 902	$ 1,032	$ 1,029	$ 1,001
Additions	32	73	64	210
Amortization	(70)	(71)	(229)	(177)
Ending balance	864	1,034	864	1,034
Valuation Allowance:
Beginning balance	(213)	(340)	(373)	(71)
Valuation Allowance Adjustment	82	0	242	(269)
Ending balance	(131)	(340)	(131)	(340)
Net Carrying Value
Mortgage Servicing Rights, Net Carrying Value	733	$ 694	733	$ 694
Real estate loans services for others	$ 96,600		$ 96,600		$ 105,800