CB Financial Corporation Reports Third Quarter 2017 Earnings

Continued solid financial performance results in net income of $156,000 for third quarter 2017, as CB Financial shareholders approve proposed strategic merger with Providence Bank.

(See accompanying financials.)

News provided by

CB Financial Corporation

Nov 13, 2017, 08:41 ET

WILSON, N.C., Nov. 13, 2017 /PRNewswire/ -- CB Financial Corporation ("CB") (OTC-QB: CBFA), the holding company for Cornerstone Bank ("Cornerstone"), reported net income of $156,000 for the quarter ended September 30, 2017, compared to net income of $94,000 for the quarter ended September 30, 2016.

For the nine-month period ended September 30, 2017, CB reported net income of $451,000 compared to $2.8 million for the nine months ended September 30, 2016. Prior year-to-date earnings were positively impacted by the reversal of a deferred tax asset ("DTA") valuation allowance, resulting in a one-time tax benefit of $2.4 million in June of 2016. As of September 30, 2017, CB reported total assets of $107.4 million, total loans of $73.8 million and total deposits of $88.6 million.

"It is a pleasure to report CB's consistent, positive financial performance," said Mark A. Holmes, president of CB and Cornerstone. "In addition, we are pleased to share that on October 30, 2017, CB shareholders voted to approve the strategic merger of CB/Cornerstone with Rocky Mount, NC-based Providence Bank. Pending regulatory approvals, we look forward to completing the proposed merger during first quarter 2018."

Cornerstone opened its doors in 2000 to serve the community banking needs of the City of Wilson, Wilson County, and the surrounding area. Cornerstone operates from a main office location at 3710 Nash Street North in Wilson.

thecornerstonebank.com

The information as of and for the quarter ended September 30, 2017, as presented, is unaudited. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of our goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words "may," "could," "should," "would," "believe," "anticipate," "estimate," "expect," "intend," "plan," "projects," "outlook" or similar expressions. The actual results might differ materially from those projected in the forward-looking statements for various reasons, including, but not limited to, our ability to manage growth, changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other savings and financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company's SEC filings, including its periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from the Company.

CB Financial Corporation and Subsidiary
Balance Sheets (unaudited) September 30,			2017	2016
			(Dollars in thousands)
Assets
	Cash and due from banks		$ 4,083	$ 4,331
	Interest-earning deposits with banks		7,965	8,160
		Total cash and cash equivalents	12,048	12,491
Investment securities available for sale, at fair value			12,178	15,321
Loans receivable			73,761	71,961
Allowance for loan losses			1,059	965
		Net loans receivable	72,702	70,996
Bank premises & equipment, net			2,173	2,264
Other assets			8,266	8,821
		Total assets	$ 107,367	$ 109,893

Liabilities and Shareholders' Equity
Deposits:
	Demand deposits		$ 17,028	$ 15,119
	Savings, Money market & NOW		40,415	39,970
	Time deposits		31,168	35,257
		Total deposits	88,611	90,346
Other borrowed money			10,330	11,205
Accrued interest payable and other liabilities			366	355
		Total liabilities	99,307	101,906
		Total shareholders' equity	8,060	7,987
		Total liabilities and shareholders' equity	$ 107,367	$ 109,893

		Book value per share	$ 0.17	$0.17

CB Financial Corporation and Subsidiary
Statement of Operations (unaudited)		Nine Months Ended, Sept. 30,
		2017	2016
		(Dollars in thousands, except per share data)

Interest Income		2,878	2,747
Interest Expense		377	460

Net Interest Income		2,501	2,287
	Provision for loan losses	-	-

Net Interest Income after provision		2,501	2,287

	Service charges on deposit accounts	100	111
	Mortgage banking operations	33	85
	Other	211	255
Total noninterest Income		344	451

	Personnel costs	1,161	1,216
	Occupancy and equipment	162	174
	Data processing fees	346	344
	Other	529	569
Total noninterest expense		2,198	2,303
	Net Income before income taxes	647	435
	Income taxes	196	(2,316)
	Net Income	451	2,751

	Net income per common share	$ 0.01	$ 0.06

CB Financial Corporation and Subsidiary
Statement of Operations (unaudited)		Three Months Ended, Sept. 30,
		2017	2016
		(Dollars in thousands, except per share data)

Interest Income		968	928
Interest Expense		127	153

Net Interest Income		841	775
	Provision for loan losses	-	-

Net Interest Income after provision		841	775

	Service charges on deposit accounts	34	36
	Mortgage banking operations	2	47
	Other	83	49
Total noninterest Income		119	132

	Personnel costs	379	416
	Occupancy and equipment	52	55
	Data processing fees	119	119
	Other	188	181
Total noninterest expense		738	771
	Net Income before income taxes	222	136
	Income taxes	66	42
	Net Income	156	94