CB Financial Services, Inc. Authorizes New Stock Repurchase Program of up to $10 Million

Rhea-AI Summary

CB Financial Services, Inc. (NASDAQ: CBFV) has announced a share repurchase program to buy back up to $10 million of its outstanding common stock. This initiative could amount to approximately 433,643 shares, or 8.4% of the total shares currently outstanding, based on the closing price on April 19, 2022. The company plans to issue its earnings release for the quarter ending March 31, 2022 in the last week of April, after which repurchases may begin. The program will be executed under Rule 10b5-1, providing flexibility to adjust according to market conditions.

Positive

• Initiation of a share repurchase program valued at $10 million, potentially enhancing shareholder value.
• Repurchase could reduce outstanding shares by approximately 8.4%, potentially increasing earnings per share (EPS).

Negative

• The program is subject to suspension or modification based on market conditions, which may limit effectiveness.

WASHINGTON, Pa.--(BUSINESS WIRE)-- CB Financial Services, Inc. (the “Company”) (NASDAQ: CBFV), the holding company for Community Bank, announced today a program to repurchase up to $10 million of the Company's outstanding shares of common stock. Based on the Company’s closing stock price on April 19, 2022, the repurchase program, if fully completed, would encompass 433,643 shares, or approximately 8.4% the shares currently outstanding.

Any repurchases will not occur until after the Company issues its earnings release for the quarter ended March 31, 2022, which the Company expects to do during the last week of April.

Repurchases may be transacted in the open-market or in negotiated private transactions and will be conducted pursuant to a trading plan adopted in accordance with limitations set forth in Rule 10b5-1 of the Securities and Exchange Commission. The Rule 10b5-1 repurchase plan allows the Company to repurchase its shares during periods when it would normally not be active in the market due to its internal trading blackout period. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares.

About CB Financial Services, Inc.
CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania, West Virginia, and Ohio. Community Bank offers a broad array of retail and commercial lending and deposit services and provides commercial and personal insurance brokerage services through Exchange Underwriters, Inc., its wholly owned subsidiary.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

Forward Looking Statements
This press release contains certain forward-looking statements about the stock repurchase program. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include delays in completing the proposed repurchase program, changes in the interest rate environment, changes in the market price of the Company’s common stock, changes in the general economic conditions, legislative and regulatory changes that adversely affect the business of the Company and Community Bank, changes in the securities markets, and other factors disclosed in the Company’s periodic filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220421005170/en/

Company:

John H. Montgomery

President and Chief Executive Officer

Phone: (724) 225-2400

Investor:

Jeremy Hellman, CFA

The Equity Group Inc.

Phone: (212) 836-9626

Email: jhellman@equityny.com

Source: CB Financial Services, Inc.

FAQ

What is the purpose of the stock repurchase program announced by CBFV?

The program aims to buy back up to $10 million of outstanding shares to enhance shareholder value.

How many shares does CBFV plan to repurchase under the program?

CBFV plans to repurchase approximately 433,643 shares, equating to about 8.4% of current outstanding shares.

When will CBFV start repurchasing shares?

Repurchases will begin after the earnings release for the quarter ended March 31, 2022, expected in late April.

Under what conditions can the share repurchase program be modified?

The program can be suspended or modified for reasons including market conditions, liquidity, or alternative investment opportunities.