Back to top

Image: Bigstock

CB Financial (CBFV) to Divest 2 West Virginia Branches

Read MoreHide Full Article

CB Financial Services, Inc. (CBFV - Free Report) and its subsidiary, Community Bank, have entered into a purchase-and-assumption agreement with Citizens Bank of West Virginia, Inc., the subsidiary of Citizens Financial Corp. Per the terms of deal, CB Financial will divest two West Virginia branches — the Buckhannon and New Martinsville.

The deal is subject to regulatory approval and the satisfaction of certain customary closing conditions. Further, the transaction, likely to close in the fourth quarter this year, is projected to result in gain on sale.

Under the terms of the transaction, certain deposit liabilities and loans, as along with cash, real property, personal property and other fixed assets related to these branches will be acquired by Citizens. As of May 31, 2021, the branches had deposit and loan balances of $101.9 million and $6.3 million, respectively. Citizens will pay a 5% deposit premium on the total deposits transferred.

CB Financial has been undertaking initiatives to streamline its operations and the divestiture of these branch locations is a continuation of the branch-optimization strategy announced this February. Apart from propelling adeptness throughout the bank and investing in technological refinements, Community Bank will be able to focus better on its core markets surrounding Southwestern Pennsylvania.

Besides, the above-mentioned branches were geographically the furthest from the company’s headquarter in Pennsylvania. Following the deal’s closure as well as the proposed consolidation of six other branches, CB Financial will operate from 14 locations in Southwestern Pennsylvania and West Virginia.

The president and CEO of CB Financial, John H. Montgomery, stated, “These West Virginia branches are much closer to Citizens’ headquarters and centralized operations. This transaction allows our Company to focus our growth on our core markets. In addition, we remain focused on increasing efficiency and investing in digital marketing and technology enhancements. We see this as an important step in our optimization efforts as we seek to improve overall profitability and deliver peer-leading returns to the Company’s shareholders."

Nathaniel S. Bonnell, president and CEO of Citizens, stated, “Citizens’ purchase of these branches provides an outstanding opportunity for us to increase our presence and commitment in the Buckhannon market as well as expand our footprint into New Martinsville. This acquisition is strategically beneficial to both Citizens and Community, and we are excited to welcome these West Virginia clients into the Citizens family.”

In the past six months, shares of CB Financial have gained 5%, underperforming 31.6% growth recorded by the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

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 enhance profitability. In December 2020, CF Bankshares’ (CFBK - Free Report) subsidiary, CFBank, had entered into an agreement with Consumers National Bank. Per the deal, CFBank would divest two Ohio branches — the Wellsville drive-up branch and the Calcutta branch.

Also, in the same month, Investors Bancorp, Inc. (ISBC - Free Report) 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.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>