CB Financial has strong 4th quarter
CARMICHAELS – CB Financial Services Inc. Tuesday announced net income of $2.0 million for the three months ended Dec. 31, compared to $1.8 million for the comparable quarter of 2015, an increase of $265,000, or 15.1 percent.
CB Financial, the holding company of Carmichaels-based Community Bank and Exchange Underwriters, Inc., a wholly-owned insurance subsidiary of the bank, said earnings per share increased 7 cents, or 16.3 percent, to 50 cents, increasing 6 cents, or 14 percent, to 49 cents for the three months ended Dec. 31, compared to 43 cents for the comparable quarter of 2015..
Net interest income in the fourth quarter increased $314,000, or 4.4 percent, to $7.5 million, compared to $7.2 million for the fourth quarter of 2015.
The bank said in a news release that quarterly results benefited from increased loan yield and investment growth that yielded additional interest income.
Net income decreased $840,000, or 10 percent, to $7.6 million for the year ended Dec. 31, compared to $8.4 million for the year ended Dec. 31, 2015.
Earnings per share decreased 21 cents, or 10.1 percent, to $1.86 for the year ended Dec. 31, compared to $2.07 for the year ended Dec. 31, 2015. The bank said annual results were mainly impacted by a decrease of $1.2 million in pre-tax income, primarily related to an increase in noninterest expense and a decrease in noninterest income.
“The fourth quarter was strong and completed 2016 on a high note,” said President and Chief Executive Officer Barron P. McCune, Jr., noting that the net income of $2 million in the fourth quarter represents a return on assets of 0.95 percent and a return on equity of 8.92 percent.
For all of 2016, CBFV recorded net income of $7.6 million, representing ROA of 0.91 percent and ROE of 8.48 percent. “These results are below that of 2015, but given the state of the local economy and other industry headwinds, we are pleased with the performance of the bank.
“After a weaker third quarter, the fourth quarter is indicative of an improving local economy and optimism for the future.
He noted that total loans outstanding grew during the fourth quarter by $2.5 million.
“We were also able to grow deposits by $19.9 million during the fourth quarter, which bodes well for the future. Our credit quality continues to be strong as nonperforming loans and nonperforming assets declined significantly and quarterly net charge-offs declined 76.9 percent.
“After the challenges of 2016, we start 2017 with new optimism and determination,” McCune said.