Jul 28, 2016 2 min read

CARMICHAELS – CB Financial Services Inc., the holding company of Community Bank, said Wednesday its net income declined 13.5 percent for the second quarter, as it felt the dual impact of the curtailment of coal production and continued low activity in the region’s natural gas industry.

The Carmichaels-based bank reported income of $1.9 million for the three months ended June 30, compared with $2.2 million for the second quarter of a year ago. Earnings per share decreased 7 cents, or 12.7 percent to 48 cents for the quarter, compared with 55 cents for the second quarter of 2015.

For the six months ended June 30, net income decreased $552,000, or 13 cents per share, to $4 million, or 98 cents per share, compared with $4.5 million, or $1.11 per share, for the six months ended June 30, 2015.

According to a news release, the bank said its quarterly results were largely impacted by a decrease of $436,000 in pre-tax income, primarily related to increases in non-interest expense.

“The company had another strong quarter despite the challenges that community banks face in our local economy,” said President and CEO Barron P. McCune Jr.

“The local coal industry has been curtailed and low natural gas prices have chilled the development of the Marcellus and Utica in our markets. This, combined with its impact on loan demand and with regular increases in expenses, generated a return on average assets of 0.94 percent and 8.75 percent on average equity for the second quarter. While results have been moderately affected by these factors, we already detect a turn in the local economy and we expect to continue our strong performance.”

In April, the Bank enhanced its position on the American Banker’s Top 200 list of performing community banks in the nation based on its three- year average return on equity. “This designation is a direct result of the Bank’s commitment to its customers and to yielding a strong shareholder return on investment,” said McCune.