F&M Bank Restructures Bond Portfolio, Lifts EPS by $0.21 Annually
FMBM has more than doubled off its 52-week low of $19.04.
Summary
F&M Bank used a $3.8M after-tax gain from an April asset sale to restructure its bond portfolio, swapping $29.8M of low-yield securities for higher-yielding ones. The move is expected to add $0.21 to annual EPS and 6 bps to net interest margin, with the $2.7M after-tax loss recovered in about 3.5 years. This follows the May 5th 8-K that disclosed the gain but not the restructuring details. The bank is trading near its 52-week high, and the improved yield outlook supports the positive momentum. Q2 results will reflect the restructuring loss but not the full annualized benefit.
At the time of this announcement, FMBM was trading at $38.40 on OTC in the Finance sector, with a market capitalization of approximately $136.7M. The 52-week trading range was $19.04 to $38.44. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.