CB Financial Services announces $5 million share repurchase program

WASHINGTON, Pa. - CB Financial Services, Inc. (NASDAQ:CBFV), the holding company for Community Bank, announced Thursday a program to repurchase up to $5 million of its outstanding common stock. The announcement comes as the company’s stock trades near its 52-week high of $33.98, having delivered a strong 27% return over the past year. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.

Based on the company’s closing stock price on September 3, the repurchase program would encompass approximately 153,233 shares, representing about 3.1% of currently outstanding shares, if fully completed.

The repurchase program is scheduled to terminate on September 30, 2026. According to the press release, transactions may be conducted in the open market or through negotiated private transactions under a Rule 10b5-1 trading plan.

The company noted that the Rule 10b5-1 plan will allow it to repurchase shares during periods when it would normally not be active in the market due to internal trading blackout periods.

CB Financial Services stated that the repurchase program may be suspended, terminated or modified at any time for various reasons, including market conditions, share cost, alternative investment opportunities, and liquidity. These factors may also affect the timing and amount of share repurchases.

The company emphasized that the program does not obligate it to purchase any specific number of shares.

CB Financial Services operates through its subsidiary Community Bank, which maintains branch networks across southwestern Pennsylvania and West Virginia, offering retail and commercial banking services.

In other recent news, CB Financial Services reported impressive second-quarter earnings, significantly surpassing analyst expectations. The company achieved adjusted earnings per share of $0.74, beating estimates by $0.32, and reported revenue of $13.53 million, which exceeded the consensus estimate of $12.79 million. The bank also saw a 9.3% year-over-year increase in net interest income, reaching $12.5 million, with a net interest margin improvement to 3.54% from 3.18% in the previous year. Additionally, CB Financial Services announced a balance sheet repositioning strategy, selling $129.6 million in investment securities, which included mortgage-backed securities and municipal securities, resulting in an estimated after-tax realized loss of $9.3 million.

Keefe, Bruyette & Woods (KBW) has upgraded CB Financial Services from Market Perform to Outperform, raising the price target from $31.00 to $39.00, citing benefits from strategic investments and a 42 basis point expansion in net interest margin year-to-date. Furthermore, KBW reiterated an Outperform rating on the stock, emphasizing the earnings potential from the bank’s recent securities restructuring. The restructuring is expected to generate a 15% boost to earnings, utilizing the bank’s excess capital effectively. These developments highlight CB Financial Services’ strategic efforts to enhance profitability and strengthen its financial position.

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