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.