 WASHINGTON, Pa., July 27, 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 second quarter and year-to-date 2020 financial results. Net income was 2.9 million, or 0.54 diluted earnings per share, for the three months ended June 30, 2020, compared to 3.0 million, or 0.55 diluted earnings per share, for the three months ended June 30, 2019. Net income was 3.7 million, or 0.68 diluted earnings per share, for the six months ended June 30, 2020 compared to 5.9 million, or 1.08 diluted earnings per share, for the six months ended June 30, 2019.COVID-19 UpdateWhile signs of macroeconomic recovery have occurred during the second quarter after the phased-in reopening of the economy beginning in May 2020, the far-reaching impact of the COVID-19 pandemic remains uncertain. The unemployment rate declined after peaking in April, but remains at a very high level. Beginning in March 2020, definitive federal government action occurred through the enactment of the Coronavirus Aid, Relief, and Economic Security Act the CARES Act, Paycheck Protection Program and Health Care Enhancement Act the PPP Enhancement Act and other programs to aid businesses and consumers from the COVID-19 impact.The Company remains committed to its employees and customers during the COVID-19 crisis. For employees, the Company: Instituted Community Bank Cares premium pay program, which began in March and ended in June, offering our essential employees: 10 premium pay. One extra day of paid time off for each month worked. Lunch on Us provided once weekly using local restaurants to support business. Maintained all employee benefits, including 401k match and discretionary contributions. Leveraged technological resources quickly and efficiently to support remote working arrangements that ensured sustained performance. Established a COVID-19 Preparedness Committee comprised of a cross-functional team of Senior Management and Human Resources focused on employee and customer safety and thorough and frequent communication regarding COVID-19 updates. Instituted social distancing and other protective measures throughout the bank, including installation of Plexiglas shields and floor decals and availability of masks and disinfectant. Supported the call center, which saw a large increase in volume of calls, with resources from branch staff who were available due to lobby restrictions.For its customers, the Company: Increased ATM debit MasterCard spending and withdrawal limits as well as mobile deposit limits in light of branch lobby restrictions. Lifted ATM foreign use fees allowing customers to freely use any banks ATM with no charge from the Bank. Monitored overdraft fees carefully and worked closely with customers negatively impacted by job loss. Facilitated government stimulus through participation in the Payroll Protection Program PPP administered by the Small Business Administration SBA. At June 30, 2020, the Banks PPP loan portfolio was comprised of 628 loans totaling 70.0 million with a median loan of 35,000. The loans impact over 8,300 small business employees. Among the largest sectors impacted were 15.3 million in loans for health care and social assistance, 12.4 million for construction and specialty-trade contractors, 6.1 million for professional and technical services, 5.9 million for retail trade, 5.1 million for wholesale trade, 4.6 million for manufacturing and 3.4 million for restaurant and food services. Net SBA origination fees as of June 30, 2020 were 2.1 million, of which 191,000 was recognized in the current quarter. We expect to recognize the majority of unearned net origination fees in the third and fourth quarter upon processing requests for loan forgiveness. All PPP loans are classified as commercial and industrial loans held for investment. Provided borrower support and relief through short-term loan forbearance options by primarily allowing: a deferral of three months of payments; or b for consumer loans not secured by a real estate mortgage, three months of interest-only payments that also extends the maturity date of the loan by three months. During the forbearance period, the borrower is not considered delinquent for credit bureau reporting purposes.Refer to the Credit Quality section for further information on loans in forbearance and commercial industry exposures.The Company also continues to manage the disruption through a position of strength and soundness with strong capital and substantial liquidity levels to ensure it is well-positioned to support its customers. The Company has 399.3 million in available borrowing capacity with the Federal Home Loan Bank, a 90.4 million borrower-in-custody of collateral line of credit with the Federal Reserve Bank, and 60.0 million from multiple line of credit arrangements, as well as 131.4 million in cash and cash equivalents and 10.0 million in unpledged securities.The Company is very pleased to report net income of 2.9 million for the current quarter despite the extraordinary impact from the pandemic and the significant disruption that occurred to our regular operations, said Barron P. Pat McCune, Jr., President and Chief Executive Officer. While there is optimism in the macroeconomic data, there is also continued uncertainty of how the pandemic will ultimately impact the Bank. Asset quality remains solid with a 0.39 delinquent and noncurrent loans to total loans ratio, and the buildup of the allowance for loan losses to 227 of nonperforming loans better positions us for the unknowns that exist as the payment deferral period ends for many of our borrowers. Initial indications are the majority of them will resume payments and we will monitor this situation closely for those requesting additional time. We have ample liquidity and strong capital to fall back on. The pandemic provided us an opportunity to further assess our branch network and make a decision to consolidate redundant locations in light of declining traffic and accelerated adoption of digital technology. We are steadfast in our vow to serve our communities and help our market recover. This was never more evident than in the past quarter with well over 600 payment deferrals and 600 PPP loans processed, government stimulus payments, and solid mortgage and insurance activity, all done while working remotely. I marvel at the phenomenal effort by our employees who tirelessly worked and united like never before for the collective good.Quarterly HighlightsNet income for the three months ended June 30, 2020 was 2.9 million compared to 3.0 million for the three months ended June 30, 2019. This was an increase of 2.1 million, or 275.6, compared to the three months ended March 31, 2020. Diluted earnings per share for the three months ended June 30, 2020 was 0.54 compared to 0.55 for the three months ended June 30, 2019 and 0.14 for the three months ended March 31, 2020. Net interest income decreased 384,000, or 3.6, to 10.3 million for the three months ended June 30, 2020 compared to 10.7 million for the three months ended June 30, 2019. This was also a decrease of 212,000, or 2.0, compared to the three months ended March 31, 2020. Interest and dividend income decreased 942,000, or 7.4, to 11.7 million for the three months ended June 30, 2020 compared to 12.7 million the three months ended June 30, 2019. This was also a decrease of 602,000 or 4.9 compared to the three months ended March 31, 2020. Although average loans increased 108.0 million compared to the three months ended June 30, 2019, the average yield decreased 53 basis points bps to 4.21. This was also a 36 bp decline compared to the quarter ended March 31, 2020. The current quarter loan yield was impacted by the declines in interest rate indices in March 2020 at the onset of the pandemic, which resulted in an immediate decrease in interest rates on adjustable rate loans. In addition, PPP loans decreased the loan yield 6 bps in the current quarter. The Bank continued to accrue and recognize interest income on loans in forbearance due to expectation that borrowers will resume payment at the end of forbearance and collectibility of the interest income is not in question. With the majority of loans scheduled to exit forbearance in the third quarter, the Bank will evaluate whether continuing to accrue interest is prudent on a loan-by-loan or industry basis. Other interest and dividend income, which primarily consists of interest-bearing cash, decreased 290,000, or 77.5 to 84,000 for the quarter ended June 30, 2020 compared to 374,000 for the quarter ended June 30, 2019. Average other interest-earning assets increased 43.6 million compared to the three months ended June 30, 2019 primarily from buildup of cash as a result of calls of U.S. government agency and municipal securities and government stimulus payments, but average yield declined 246 bps due to interest rate cuts on interest-earning cash deposits held at other financial institutions. Similarly, compared to the three months ended March 31, 2020, other interest and dividend income decreased 154,000 from 238,000. Interest income on taxable investment securities decreased 502,000, or 34.8 to 940,000 for the three months ended June 30, 2020 compared to 1.4 million for the three months ended June 30, 2019 driven by a 71.9 million decrease in average investment security balance. The Federal Reserves decision to drop the benchmark interest rate resulted in the call of 52.5 million in U.S. 