CB Financial Services, Inc. Reports Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Reports Net Charge Off for the Three Months Ended June 30, 2018; Provides Tax Rate Guidance for the Year 2018
July 31, 2018 at 01:30 am IST
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CB Financial Services, Inc. reported unaudited earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net interest income of $9,173,000 as compared to $7,135,000 for the same period last year. Net Interest Income After Provision for Loan Losses was $8,573,000 as compared to $6,835,000 for the same period last year. Income Before Income Taxes was $1,204,000 as compared to $2,497,000 for the same period last year. Net Income was $970,000 as compared to $1,801,000 for the same period last year. Basic and diluted earnings per share was $0.19 as compared to $0.44 for the same period last year. Return on Average Assets was 0.34% against 0.82% a year ago. Return on Average Equity was 3.40% against 7.87% a year ago.
For the six months, the company reported net interest income of $16,781,000 as compared to $14,130,000 for the same period last year. Net Interest Income After Provision for Loan Losses was $14,681,000 as compared to $13,410,000 for the same period last year. Income Before Income Taxes was $2,731,000 as compared to $4,931,000 for the same period last year. Net Income was $2,330,000 as compared to $3,505,000 for the same period last year. Diluted earnings per share was $0.51 as compared to $0.85 for the same period last year. Return on Average Assets was 0.45% against 0.82% a year ago. Return on Average Equity was 4.53% against 7.76% a year ago. Book Value Per Share was $24.69 against $22.77 a year ago.
Net charge-offs for the three months ended June 30, 2018 were $125,000, which included $113,000 of net charge-offs on automobile loans, compared to $2,000 of net charge-offs for the three months ended June 30, 2017, which included $49,000 of net charge-offs on automobile loans. The increase in net charge-offs during the current period was due to reduced recoveries in the current period and higher auto mobile loan charge-offs. Management analyzes the loan portfolio on a quarterly basis to determine the adequacy of the allowance for loan losses and the need for additional provisions for loan losses. The increase in the quarterly provision was primarily due to loan growth. This was partially offset by improvements in the local economy and industry conditions which had a positive impact on the qualitative factors within the allowance calculation.
The expected effective tax rate for the current year 2018, is 17.4%, which was calculated by excluding the one-time income on a bank-owned life insurance claim of approximately $421,000, which represents a discrete tax item for the first quarter of 2018. The decrease in income taxes was due to the enactment of the Tax Cuts and Jobs Act of 2017, which reduced the corporate statutory federal income tax rate from 34% to 21% effective January 1, 2018.
CB Financial Services, Inc. is the bank holding company. The Company conducts its operations primarily through its wholly owned subsidiary, Community Bank (the Bank). The Bank offers range of residential and commercial real estate loans, commercial and industrial loans, and consumer loans and deposit products for individuals and businesses in its market area. The Company's principal lending activity has been the origination in its local market area of residential one- to four-family, commercial real estate, construction, and others. Its residential real estate loans are comprised of loans secured by one- to four-family residential properties. It provides loans to individuals to finance the construction of residential dwellings, construction of commercial properties, including hotels, and apartment buildings. Its investment portfolio includes United States Government Agency Securities, Obligations of States and Political Subdivisions, Mortgage-Backed Securities, and Corporate Debt.
CB Financial Services, Inc. Reports Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2018; Reports Net Charge Off for the Three Months Ended June 30, 2018; Provides Tax Rate Guidance for the Year 2018