CB Financial Services, Inc. Repositions Balance Sheet; Expect Repositioning To Add About 17 Basis Points To Our Net Interest Margin And About $0.36 To EPS In 2024
Portfolio Pulse from Benzinga Newsdesk
CB Financial Services, Inc. (CBFV) has repositioned its balance sheet by selling $79.4 million of lower-yielding securities and purchasing $69.3 million in higher-yielding mortgage-backed securities. The repositioning is expected to add approximately 17 basis points to the net interest margin and $0.36 to EPS in 2024. The company anticipates a $1.8 million increase in after-tax earnings and expects to recover the $8.0 million after-tax realized loss from the sale in about 4.3 years. The repositioning is seen as a strategic move to enhance shareholder value and improve earnings without impacting consolidated shareholders' equity or tangible book value per share.
December 13, 2023 | 9:20 pm
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CBFV's balance sheet repositioning is expected to positively impact its net interest margin by 17 basis points and add $0.36 to EPS in 2024, with a projected $1.8 million increase in after-tax earnings.
The repositioning of CBFV's balance sheet by selling lower-yielding securities and purchasing higher-yielding ones is a proactive measure to enhance profitability. The expected increase in net interest margin and EPS indicates a positive outlook for the company's financial performance. The management's expectation of recovering the realized loss from the sale within 4.3 years and the neutral impact on shareholders' equity and tangible book value per share further support a positive short-term impact on the stock price.
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