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CF Bankshares (CFBK) Arm Signs Deal to Divest 2 Ohio Branches
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CF Bankshares’ (CFBK - Free Report) subsidiary, CFBank, has entered into an agreement with Consumers National Bank. Per the deal, CFBank will divest two Ohio branches — the Wellsville drive-up branch and the Calcutta branch.
Though the deal is subject to regulatory approval and satisfaction of certain customary closing conditions, it is expected to close in the second quarter of 2021. Post completion, the branches will be converted to Consumers branch offices.
Per the terms, CFBank will be transferring land, buildings and other associated assets of the two branches, consisting nearly $100 million in deposits, and certain loans and other interest earning assets.
The purchase price has been fixed as the net book value of the land, building and associated assets of the branches, the par value of the earning assets, and a deposit premium equal to 1.75% of the average daily deposits for 30 days preceding the closing.
Notably, the deal is expected to be 10% accretive to earnings of Consumers. On a pro forma basis, Consumers' total assets will be about $850 million and its capital ratios are projected to remain strong and continue boosting balance sheet growth.
Ralph J. Lober II, Consumers' president and CEO, said that the company plans to provide a full range of consumer and business services from these branches. He added, "The acquisition of these branches will strengthen our competitive position in Columbiana County and will complement our four Jefferson County locations.”
Tim O'Dell, president and CEO of CFBank, said that he plans to use the proceeds from this sale to invest in more profitable opportunities. He said, “The sale of the Columbiana County branches allows us to gain greater efficiencies in our core markets and to focus our sales efforts in those communities."
In the past year, shares of CF Bankshares have gained 71.6% compared with the 30.4% growth of the industry it belongs to.
Amid the coronavirus pandemic-induced economic slowdown, several banks are taking initiatives to focus on core businesses with an aim to improve profitability. Last month, People’s United Financial’s banking subsidiary People's United Bank completed the divesture of People's United Insurance Agency to AssuredPartners.
Also, Investors Bancorp, Inc. has entered into an agreement to acquire eight branches of Berkshire Bank, the wholly owned subsidiary of Berkshire Hills Bancorp, Inc. (BHLB - Free Report) . These branches are located in New Jersey and Eastern Pennsylvania.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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CF Bankshares (CFBK) Arm Signs Deal to Divest 2 Ohio Branches
CF Bankshares’ (CFBK - Free Report) subsidiary, CFBank, has entered into an agreement with Consumers National Bank. Per the deal, CFBank will divest two Ohio branches — the Wellsville drive-up branch and the Calcutta branch.
Though the deal is subject to regulatory approval and satisfaction of certain customary closing conditions, it is expected to close in the second quarter of 2021. Post completion, the branches will be converted to Consumers branch offices.
Per the terms, CFBank will be transferring land, buildings and other associated assets of the two branches, consisting nearly $100 million in deposits, and certain loans and other interest earning assets.
The purchase price has been fixed as the net book value of the land, building and associated assets of the branches, the par value of the earning assets, and a deposit premium equal to 1.75% of the average daily deposits for 30 days preceding the closing.
Notably, the deal is expected to be 10% accretive to earnings of Consumers. On a pro forma basis, Consumers' total assets will be about $850 million and its capital ratios are projected to remain strong and continue boosting balance sheet growth.
Ralph J. Lober II, Consumers' president and CEO, said that the company plans to provide a full range of consumer and business services from these branches. He added, "The acquisition of these branches will strengthen our competitive position in Columbiana County and will complement our four Jefferson County locations.”
Tim O'Dell, president and CEO of CFBank, said that he plans to use the proceeds from this sale to invest in more profitable opportunities. He said, “The sale of the Columbiana County branches allows us to gain greater efficiencies in our core markets and to focus our sales efforts in those communities."
In the past year, shares of CF Bankshares have gained 71.6% compared with the 30.4% growth of the industry it belongs to.
Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amid the coronavirus pandemic-induced economic slowdown, several banks are taking initiatives to focus on core businesses with an aim to improve profitability. Last month, People’s United Financial’s banking subsidiary People's United Bank completed the divesture of People's United Insurance Agency to AssuredPartners.
Also, Investors Bancorp, Inc. has entered into an agreement to acquire eight branches of Berkshire Bank, the wholly owned subsidiary of Berkshire Hills Bancorp, Inc. (BHLB - Free Report) . These branches are located in New Jersey and Eastern Pennsylvania.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>