CB Financial Services CBFV Impaired Loans Individually Assessed

Loans that do not share risk characteristics are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL - Loans is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. As of June 30, 2026, there were $1.8 million of loans that required specific valuation allowances of $328,000. This included residential real estate loans for $1.1 million with a valuation allowance of $106,000, a construction loan for $414,000 with a valuation allowance of $154,000, and commercial and industrial loans for $308,000 with a valuation allowance of $68,000. As of December 31, 2025, there were $970,000 of loans that required specific valuation allowances of $165,000. This included residential real estate loans for $556,000 with a valuation allowance of $35,000, and a construction real estate loan for $414,000 with a valuation allowance of $130,000.