CBT FINANCIAL : ANNOUNCES 2016 ANNUAL EARNINGS

CBT FINANCIAL CORP. ANNOUNCES 2016 ANNUAL EARNINGS

January 30, 2017

CBT Financial Corp. (OTC:Pink - CBTC), the parent company of CBT Bank, today announced net income of $3,295,985, which is down slightly from 2015. Net income available to common shareholders did increase by 1.8%. Earnings per common share for 2016 were $2.28 compared to $2.86 for 2015. The decline in earnings per share is the result of the average number of shares outstanding increasing by 313,000.

Fourth quarter net income was $790,490, a decrease of 21.9% or $221,300 from net income of

$1,011,790 for the fourth quarter of 2015. Earnings per common share for the fourth quarter of 2016 were $0.55 compared to $0.64 for the same period of 2015.

Because of the increase in loans, net interest income increased $1,031,088 from $13,782,378 to

$14,813,466 year over year. The increase was partially offset by an increase in the provision for loan losses of $207,000 thousand. In 2017 we did not experience the benefit of nonrecurring income that was experienced in 2016. As a result the Corporation saw a decline in Noninterest income of $356,987 thousand. The decline was the result of lower trust fees because of fewer estates; fewer commissions on other financial products; earnings from bank owned life insurance because of the lack of death benefits and gains on the sale of securities.

The Bank's return on assets and return on equity ratios were 0.71% and 6.85% for 2016 compared to 0.77% and 8.24% for 2015.

Total assets increased $25.1 million to $480.7 million, net loans increased by 11.7% or $40.0 million and deposits increased $35.6 million or 9.8% year-over-year. The Bank's loan to deposit ratio is 91.03% at December 31, 2016. Asset quality continues to be very good with the non- performing asset ratio at a very low 0.52% and a charge off ratio of only 0.07%.

Michael J. Bibak, President & CEO, stated that "2016 represented a year of continued growth and expansion at CBT. With a continued challenging rate environment the Bank remained focused on efficiency. Several improvements to core operations, coupled with a new process to acknowledge troubled loans within the portfolio impacted the profitability of the Bank but they are expected to result in much improved earnings in the future. CBT remains committed to its employees, customers and shareholders. The plan provides these groups with a positive work environment, a competitive and useful platform of products and services and a strong return on investment."

CBT Financial Corp. is the holding company of CBT Bank, which operates twelve community offices throughout Blair, Centre, Clearfield and Huntingdon Counties. They provide a full range of consumer and business banking services along with trust services and financial planning. For more information, contact their headquarters at 814-765-7551 or log onto www.CBTbank.bank.

Certain statements in this news release that relate to CBT Financial Corp's plans, objectives, or future performance may be deemed to be forward-looking statements. Such statements are based on management's current expectations. Actual strategies and results in future periods may differ materially from those currently expected because of various risks and uncertainties.

Financial Highlights

Quarter	Year to Date
12/2016	9/2016	6/2016	3/2016	12/2015	12/2016	12/2015	12/2014	12/2013	12/2012

PERFORMANCE

Return on average assets	0.67%	0.76%	0.75%	0.67%	0.91%	0.71%	0.77%	0.74%	0.60%	0.77%
Core return on average assets	0.67%	0.76%	0.75%	0.67%	0.92%	0.71%	0.78%	0.77%	0.66%	0.71%
Return on average shareholders' equity	6.48%	7.27%	7.24%	6.39%	8.61%	6.85%	7.58%	7.19%	5.87%	7.37%
Core return on average shareholders' equity	6.48%	7.27%	7.24%	6.39%	8.68%	6.85%	7.69%	7.51%	6.45%	6.78%
Net interest margin	3.57%	3.57%	3.51%	3.56%	3.66%	3.48%	3.47%	3.41%	3.57%	3.78%
Efficiency ratio	70.17%	71.72%	71.78%	73.30%	65.50%	72.06%	71.60%	74.24%	75.05%	71.07%
Net income per common share	0.55	0.61	0.60	0.52	0.64	2.28	2.86	3.10	2.37	3.05
Dividends Declared	0.30	0.30	0.30	0.30	0.33	1.20	1.23	1.23	1.23	1.22

CAPITAL ADEQUACY
Tier 1 common equity	40,723	40,302	39,790	39,306	38,917	40,723	38,917	N/A	N/A	N/A
Tier 1 capital	49,723	49,302	48,790	48,306	47,917	49,723	47,917	45,043	42,785	41,319
Tier 2 capital	3,617	3,340	3,336	3,350	3,225	3,617	3,225	N/A	N/A	N/A
Total capital	53,340	52,642	52,126	51,656	51,142	53,340	51,142	48,340	45,893	44,549
Tier 1 common capital ratio	11.14%	11.61%	11.73%	11.92%	12.04%	11.14%	12.04%	N/A	N/A	N/A
Tier 1 ratio	13.60%	14.20%	14.38%	14.65%	14.83%	13.60%	14.83%	15.99%	15.94%	15.77%
Total capital ratio	14.59%	15.16%	15.36%	15.66%	15.83%	14.59%	15.83%	17.16%	17.10%	17.01%
Leverage ratio	10.69%	10.88%	10.77%	10.78%	11.02%	10.69%	11.02%	10.61%	10.23%	10.30%
Tangible common equity/Tangible assets	8.82%	9.02%	8.89%	8.87%	9.03%	8.82%	9.03%	6.14%	5.34%	5.57%

CREDIT QUALITY

Nonperforming assets/Total assets	1.27%	1.27%	1.30%	1.38%	1.32%	1.27%	1.32%	1.25%	1.25%	1.65%
Nonperforming assets excluding restructured loans	0.54%	0.27%	0.27%	0.32%	0.24%	0.54%	0.24%	0.30%	0.21%	0.52%
Net loss to average loans	0.08%	0.10%	0.12%	0.02%	0.46%	0.07%	0.17%	-0.15%	0.16%	0.42%
Loan loss reserve/Total loans	0.94%	0.91%	0.92%	0.95%	0.93%	0.94%	0.93%	1.10%	1.10%	1.19%
Reserves/Nonperforming assets	61.02%	55.97%	55.01%	52.67%	53.44%	61.02%	53.44%	61.06%	58.53%	46.22%
Past due loans/Total loans	0.46%	0.42%	0.44%	0.60%	0.51%	0.46%	0.51%	1.01%	1.19%	1.27%
Classified loans/Total loans	0.89%	0.95%	0.91%	1.72%	1.41%	0.89%	1.41%	3.14%	1.92%	2.81%

Consolidated Balance Sheet ASSETS

12/2016 9/2016 6/2016 3/2016 12/2015 12/2014 12/2013 12/2012

Cash and due from financial institutions	$2,465	$6,764	$5,381	$4,768	$2,532	$2,847	$3,206	$7,338
Interest bearing deposits in other financial institutions	3,350	2,232	3,559	4,940	3,363	4,408	12,099	18,742
Securities available for sale	56,003	59,730	62,354	67,405	73,189	95,743	98,228	94,563
Loans Held for Sale	-	-	-	-	-	114	-	-
Loans	386,280	366,234	358,857	350,968	345,925	298,474	282,065	268,065
Unearned Interest	(3,617)	(3,316)	(3,307)	(3,328)	(3,219)	(3,292)	(3,108)	(3,187)
Federal Home Loan Bank stock, net of cost	976	348	288	288	1,724	616	818	885
Foreclosed assets, net	699	614	653	558	558	-	77	303
Premises and fixed assets	10,518	10,439	10,381	10,529	10,638	11,279	11,967	9,801
Goodwill	9,760	9,760	9,760	9,760	9,760	9,760	9,760	9,760
Other intangible assets	-	-	-	-	-	153	357	570
Bank Owned life insurance	11,489	11,407	11,322	8,260	8,204	8,575	8,341	8,105
Accrued income receivable and other assets	2,775	2,844	3,120	3,246	2,885	3,033	2,368	3,179
Total assets	$480,698	$467,056	$462,368	$457,394	$455,559	$431,710	$426,178	$418,124

LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities

Deposits

Noninterest-bearing	$66,894	$71,114	$65,601	$67,977	$67,321	$60,634	$53,237	$49,928
Interest-bearing	332,844	331,204	331,328	324,214	296,819	302,460	311,988	305,548
Total deposits	399,738	402,318	396,929	392,191	364,140	363,094	365,225	355,476

Federal Home Loan Bank Advances	16,500	-	2,000	2,000	28,700	8,800	4,000	4,000
Subordinated debentures	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000
Accrued interest payable and other liabilities	7,024	7,355	6,621	6,843	6,784	6,285	5,622	6,638
Total liabilities	432,262	418,673	414,550	410,034	408,624	387,179	383,847	375,114

Shareholder's equity

Preferred stock ($1 par value; non-cumulative; $10.000 liquidation value; 10,000 shares authorized; 10 shares issued)

- - - - - 9,993 9,987 9,981

Common stock (No par value; 10,000 shares authorized; 1,285 shares issued at 2015; 1,034 shares at 2014)	-	-	-	-	-	-	-	-
Additional paid in capital	15,081	15,095	15,095	15,095	15,095	4,309	4,309	4,309
Retained earnings	34,618	34,247	33,800	33,382	33,057	31,335	29,483	28,354
Accumulated other comprehensive income	304	608	490	450	350	461	119	1,933
Treasury stock at cost (40 shares)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)
Total shareholder's equity	48,436	48,383	47,818	47,360	46,935	44,531	42,331	43,010
Total liabilities and shareholders' equity	$480,698	$467,056	$462,368	$457,394	$455,559	$431,710	$426,178	$418,124

Average Consolidated Balance Sheet

Quarter	Year to Date
12/2016	9/2016	6/2016	3/2016	12/2015	12/2016	12/2015	12/2014	12/2013	12/2012

ASSETS

Cash and due from financial institutions	$5,791	$5,290	$5,308	$6,314	$5,434	$5,451	$5,843	$6,083	$5,982	$5,550
Interest bearing deposits in other financial institutions	185	2,089	4,028	822	165	1,710	224	12,115	12,191	8,594
Securities available for sale	58,203	61,085	65,294	70,446	75,499	63,649	83,521	96,168	97,330	107,698
Loans Held for Sale	28	55	59	5	16	31	21	62	164	77
Loans	375,884	359,961	356,238	349,341	331,990	360,432	314,227	289,534	275,886	256,603
Unearned Interest	(3,369)	(3,304)	(3,327)	(3,252)	(3,295)	(3,313)	(3,313)	(3,072)	(3,268)	(3,366)
Federal Home Loan Bank stock, net of cost	841	316	289	1,000	806	612	705	834	913	961
Foreclosed assets, net	608	629	597	588	194	596	51	32	99	770
Premises and fixed assets	10,485	10,511	10,476	10,590	10,729	10,515	10,963	11,809	11,141	9,316
Goodwill	9,760	9,760	9,760	9,760	9,760	9,760	9,760	9,760	9,760	9,760
Other intangible assets	-	-	-	-	1	-	64	260	455	672
Bank Owned life insurance	11,440	11,363	9,118	8,234	8,350	10,044	8,583	8,460	8,223	7,984
Accrued income receivable and other assets	2,745	3,033	2,847	1,646	2,676	2,941	2,810	2,590	2,248	2,592
otal assets	$472,601	$460,788	$460,687	$455,494	$442,325	$462,428	$433,459	$434,635	$421,124	$407,211

T LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities

Deposits

Noninterest-bearing	$66,655	$65,057	$66,732	$65,839	$68,905	$65,972	$63,316	$59,180	$52,049	$48,675
Interest-bearing	327,980	329,915	328,702	311,346	297,561	324,501	301,376	312,814	307,258	296,886
Total deposits	394,635	394,972	395,434	377,185	366,466	390,473	364,692	371,994	359,307	345,561

Federal Home Loan Bank Advances	13,204	1,582	2,011	15,925	13,777	8,220	9,509	4,474	4,000	4,000
Subordinated debentures	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000	9,000
Accrued interest payable and other liabilities	6,943	6,794	6,425	5,931	6,095	6,590	6,408	5,523	5,833	6,082
Total liabilities	423,782	412,348	412,870	408,041	395,338	414,283	389,609	390,991	378,140	364,643

Shareholder's equity

Preferred stock ($1 par value; non-cumulative; $10.000 liquidation value; 10,000 shares authorized; 10 shares

issued) Common stock (No par value; 10,000 shares authorized;	-	-	-	-	-	-	4,581	9,990	9,984	9,978
1,285 shares issued at 2015; 1,034 shares at 2014)	-	-	-	-	-	-	-	-	-
Additional paid in capital	15,095	15,095	15,095	15,095	15,095	15,095	7,634	4,309	4,309	4,309
Retained earnings	34,684	34,289	33,810	33,541	33,053	33,982	32,746	30,497	29,970	28,863
Accumulated other comprehensive income	607	623	479	384	406	635	456	415	288	985
Treasury stock at cost (40 shares)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)	(1,567)
Total shareholder's equity	48,819	48,440	47,817	47,453	46,987	48,145	43,850	43,644	42,984	42,568
Total liabilities and shareholders' equity	$472,601	$460,788	$460,687	$455,494	$442,325	$462,428	$433,459	$434,635	$421,124	$407,211