INCOME TAXES
Components of the income tax provision for the periods indicated are as follows:
Year Ended December 31,20252024
(Dollars in Thousands)
Current Tax Provision:
Federal$445 $2,505 
State17 53 
Total Current Tax Provision$462 $2,558 
Deferred Tax Provision (Benefit):
Federal$(63)$185 
State(2)
Total Deferred Tax Provision (Benefit)$(65)$191 
Total Provision$397 $2,749 
The Company does not have pretax income from continuing foreign operations or foreign tax expense.
The tax effects of deductible and taxable temporary differences that gave rise to significant portions of the net deferred tax assets and liabilities are as follows:
December 31,20252024
(Dollars in Thousands)
Deferred Tax Assets:
Allowance for Credit Losses$2,326 $2,233 
Nonaccrual Loan Interest32 53 
Purchase Accounting Adjustments241 289 
Postretirement Benefits13 16 
Net Unrealized Loss on Debt Securities924 4,666 
Net Unrealized Loss on Equity Securities19 11 
Stock-Based Compensation Expense113 109 
Accrued Payroll59 107 
Lease Liability558 607 
Restructuring Costs88 88 
Other45 93 
Gross Deferred Tax Assets4,418 8,272 
Deferred Tax Liabilities:
Amortization of Intangibles73 73 
Deferred Origination Fees and Costs318 306 
Discount Accretion69 
Depreciation1,959 2,030 
Mortgage Servicing Rights89 99 
ROU Asset542 587 
Other— 
Gross Deferred Tax Liabilities2,987 3,164 
Net Deferred Tax Assets$1,431 $5,108 
Deferred taxes at December 31, 2025 and 2024, are included in Accrued Interest Receivable and Other Assets in the accompanying Consolidated Statements of Financial Condition.
Income tax payments were $300,000 and $4.1 million for federal and $1,000 and $2.3 million for state income taxes for the years ended December 31, 2025 and 2024, respectively.
A reconciliation of the federal income tax expense at statutory income tax rates and the actual income tax expense on income before taxes for the periods indicated is as follows:
20252024
Year Ended December 31,AmountPercent of Pre-tax IncomeAmountPercent of Pre-tax Income
(Dollars in Thousands)
Provision at Statutory Rate$1,113 21.0 %$3,222 21.0 %
State Taxes (Net of Federal Benefit)(1)
12 0.2 47 0.3 
Tax Credits - Low Income Housing(150)(2.8)(27)(0.2)
Nontaxable or Nondeductible Items:
Tax-Exempt Interest Revenue(485)(9.1)(282)(1.8)
Bank-Owned Life Insurance(127)(2.4)(317)(2.1)
Losses from Tax Credit Partnerships(59)(1.1)(44)(0.3)
Nondeductible Interest Expense86 1.6 30 0.2 
Stock Options - ISO Disqualifying Dispositions(112)(2.1)(18)(0.1)
Excess Tax Benefits from Equity Awards(79)(1.5)(31)(0.2)
Other63 1.1 114 0.7 
Other Items:
Proportional Amortization of Tax Credit Investments135 2.6 55 0.4 
Actual Tax Expense and Effective Rate$397 7.5 %$2,749 17.9 %
(1) State taxes in West Virginia and Pennsylvania comprised the majority (greater than 50%) of the tax effect in this category in 2025 and 2024, respectively
The Company’s federal, Pennsylvania and West Virginia income tax returns are no longer subject to examination by applicable tax authorities for years before 2022. As of December 31, 2025 and 2024, there were no unrecognized tax benefits. The Company recognizes interest accrued related to unrecognized tax benefits in noninterest income and penalties in noninterest expense. There were no interest or penalties accrued at December 31, 2025 and 2024.
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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 19, 2025
2023Mar 13, 2024
2022Mar 10, 2023
2021Mar 11, 2022
2020Mar 17, 2021
2019Mar 11, 2020
2018Mar 18, 2019
2017Mar 28, 2018
2016Mar 13, 2017
2015Mar 14, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.