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CB Financial Services, Inc. Announces Fourth Quarter and 2019 Annual Financial Results
Record Annual Net Income Drives 88% Increase in EPS WASHINGTON, Pa., Jan. 31, 2020 (GLOBE NEWSWIRE) -- CB Financial Services, Inc. (“CB” or the “Company”)
About this update from Cb Financial Services, Inc.
[{"type":"text","content":"Record Annual Net Income Drives 88% Increase in EPS\nWASHINGTON, Pa., Jan. 31, 2020 (GLOBE NEWSWIRE) -- CB Financial Services, Inc. (“CB” or the “Company”) (NASDAQGM: CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc., (“EU”) a wholly-owned insurance subsidiary of the Bank, today announced its fourth quarter and 2019 annual financial results. \n Quarterly Highlights Net income for the three months ended December 31, 2019 was $4.7 million, compared to $2.4 million for the three months ended December 31, 2018, an increase of $2.2 million, or 92.5%. Diluted earnings per share for the three months ended December 31, 2019 was $0.85 compared to $0.45 for the three months ended December 31, 2018, an increase of $0.40 per share or 90.0%. Return on average assets (annualized) reached 1.39% and 1.13%, respectively, in the last two quarters of 2019 in comparison to 0.75% for the three months ended December 31, 2018. Return on average equity (annualized) was 12.40% for the three months ended December 31, 2019 compared to 7.15% for the three months ended December 31, 2018.Quarterly results for the three months ended December 31, 2019 were significantly impacted from the recognition of a one-time income tax benefit of $1.3 million related to the reversal of a valuation allowance (“VA”) for an alternative minimum tax (“AMT”) credit carryforward. This VA was established in 2018 associated with the uncertainty of the utilization of the Company’s deferred tax assets (“DTA”) from the AMT credit carryforward of a merged entity in connection with enactment of the Tax Cuts and Jobs Act. The Company has performed a continuing evaluation of its DTA VA on a quarterly basis and has concluded that, as of December 31, 2019, it is more likely than not that the Company will generate sufficient taxable income within the applicable carryforward periods to realize its net operating losses (“NOL”) and AMT credit carryforward DTA. This conclusion, and the resulting full reversal of the DTA VA, is based upon consideration of a number of factors, including the Company's current profitability, its forecast of future profitability, and evaluation of existing tax regulations related to NOLs and utilization of AMT credit carryforward.Excluding the impact of this one-time income tax item, net income and diluted earnings per share w...