Community Bank reports strong 4Q loan and deposit growth
CARMICHAELS – CB Financial Services Inc., the holding company for Community Bank saw robust loan growth in the fourth quarter of $40.5 million, which increased the loan portfolio to $744.4 million in gross loans and an annualized loan growth rate of 23 percent.
The bank, which reported its fourth quarter and full-year results Monday, also saw deposit growth in the fourth quarter of $11 million.
During the quarter, the company and bank announced the pending merger with First West Virginia Bancorp and Progressive Bank, based in Wheeling, W.Va. The closing date is expected in the second quarter.
Noninterest income increased $115,000 and $438,000 for the three months and year ended Dec. 31, respectively, as compared to the three months and year ended Dec. 31, 2016. This was attributed to CB Financial subsidiary Exchange Underwriters’ record-breaking net income, which was related to growth in commission and fees for commercial lines and contingency income.
The quarterly results were impacted by an increase in the provision for loan losses due to quarterly loan growth and increased impaired loans. According to the bank, provision for loan losses increased $410,000 for the three months ended Dec. 31, as compared to the three months ended Dec. 31, 2016.
“The fourth quarter continued our momentum in both loan and deposit growth,” said CEO Barron “Pat” McCune. “Thanks to an improving local economy and our ongoing commitment to grow loans, we were able to grow loans in the fourth quarter by $40.5 million, which represents an annualized growth rate of 23 percent. Deposits grew approximately $11 million, which is an annualized growth rate of 5.8 percent. As of Dec. 31, our total loan to deposit ratio was 96.3 percent.”
For all of 2017, Community Bank grew loans from $681.9 million to $744.4 million, or $62.5 million, a growth rate of 9.2 percent. Commercial loans in particular experienced growth of $60.4 million or 19.6 percent.
For the fourth quarter, CB Financial Services earned net income of $1.4 million. For the year ended Dec. 31, net income was $6.9 million.
“While this is less than the $7.6 million made in 2016, special circumstances impacted results in 2017, such as merger costs and loan impairments at year-end. In light of the growth in loans and the pending closing of the First West Virginia merger, 2018 is off to a strong start,” the bank said.