CB Financial Q2 results top estimates on strong organic deposit growth

Overview

• US regional bank's Q2 adjusted EPS beat analyst expectations

• Pretax profit for Q2 exceeded analyst expectations

• Net interest and dividend income rose 15.9% yr/yr, but net interest margin declined sequentially

Outlook

• CB Financial Services did not provide specific quantitative guidance for future quarters or the full year

Result Drivers

• DEPOSIT GROWTH - Strong organic deposit growth increased cash balances and funded loan and investment security purchases

• LOAN MIX SHIFT - Redeployment from indirect auto and residential mortgage loans into higher-yielding commercial loans supported interest income

Company press release: ID:nBw5T7Cvha

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for CB Financial Services Inc is $40.00, about 11.4% above its July 24 closing price of $35.90

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 27 - Ohio Valley Banc Q2 net interest income rises on higher average earning assets

• July 27 - Bank of Marin Bancorp Q2 adjusted EPS beats estimates

• July 27 - Commercial National Financial Q2 net income edges up, loans and deposits fall

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)