CB Financial Services, Inc. records write-off of loans
WASHINGTON, Pa.–(BUSINESS WIRE)–CB Financial Services, Inc. (the “Company”) (NASDAQ:CBFV), the holding company of Community Bank (the “Bank”) and Exchange Underwriters, Inc., a wholly owned insurance subsidiary of Bank, today announced that it has recorded a charge of $2.7 million (pre-tax) in connection with a commercial and industrial loan.
The charge relates to a revolving line of credit of $3.5 million, with an outstanding balance of $2.66 million as of June 1, 2022, which is the only credit relationship that the corporate borrower, a general contractor, maintains with the Bank. The Borrower has notified the Bank of its intention to cease trading within the next year. There is no specific loan loss reserve in respect of the loan. The line of credit is partially guaranteed by the goodwill of the borrower. The Bank is pursuing legal remedies aimed at improving the likelihood of collection, although, based on the Bank’s current assessment of the credit relationship, it is believed that the prospects for collection in the foreseeable future are limited.
About CB Financial Services, Inc.
CB Financial Services, Inc. is the banking holding company of Community Bank, a Pennsylvania chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a wide range of lending and deposit services to individuals and businesses and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary.
For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.
Statements in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends that these forward-looking statements be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict the actual results or effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the business and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, the magnitude and duration of economic contraction resulting the COVID-19 pandemic and its effects on the Company’s activities and those of its customers, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, our customers’ ability to make scheduled loan repayments, loan default rates and trends, our ability to manage business risks, our ability to control costs and expenses, inflation, market and currency fluctuations, changes in federal and state laws and regulations applicable to our business, the actions of our competitors, and other factors that may be disclosed in the Company’s periodic reports filed with the Securities and Exchange Commission. These risks and uncertainties should be considered when evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company undertakes no obligation to update forward-looking statements, except as required by applicable law or regulation.