CCNE 8-K

Cnb Financial Corp/Pa (CCNE)

8-K 2024-10-21 For: 2024-10-21

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Number						Description
99.1						Press release of CNB Financial Corporation dated October 21, 2024
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


News Release

						Contact: Tito L. Lima
						Treasurer
						(814) 765-9621
						FOR IMMEDIATE RELEASE


	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Income Statement
Interest and fees on loans	$	75,725		$	72,142		$	70,980		$	219,380		$	200,206

Interest and dividends on securities and cash and cash equivalents	7,510			8,510			4,536			22,412			14,279
Interest expense	(35,749)			(34,935)			(28,280)			(103,367)			(72,353)
Net interest income	47,486			45,717			47,236			138,425			142,135
Provision for credit losses	2,381			2,591			1,056			6,292			4,751
Net interest income after provision for credit losses	45,105			43,126			46,180			132,133			137,384
Non-interest income
Wealth and asset management fees	2,060			2,007			1,833			5,869			5,567
Service charges on deposit accounts	1,790			1,794			1,861			5,278			5,569
Other service charges and fees	796			712			567			2,203			2,283
Net realized gains (losses) on available-for-sale securities	(9)			—			—			(9)			52
Net realized and unrealized gains (losses) on equity securities	656			(80)			(400)			767			(930)
Mortgage banking	197			187			172			580			516
Bank owned life insurance	775			784			754			2,326			2,211
Card processing and interchange income	2,241			2,187			2,098			6,444			6,219
Other non-interest income	2,467			1,274			978			5,335			2,711
Total non-interest income	10,973			8,865			7,863			28,793			24,198
Non-interest expenses
Salaries and benefits	19,572			17,676			17,758			56,035			51,862
Net occupancy expense of premises	3,701			3,580			3,596			10,921			10,790
Technology expense	5,417			5,573			5,232			16,062			14,677
Advertising expense	623			553			840			1,861			2,085
State and local taxes	1,256			1,237			1,028			3,636			3,108
Legal, professional, and examination fees	940			1,119			1,320			3,231			3,167
FDIC insurance premiums	846			1,018			1,027			2,854			2,901
Card processing and interchange expenses	1,193			878			1,207			3,250			4,269
Other non-interest expense	5,236			4,355			4,906			14,347			14,033
Total non-interest expenses	38,784			35,989			36,914			112,197			106,892
Income before income taxes	17,294			16,002			17,129			48,729			54,690
Income tax expense	3,340			3,045			3,402			9,218			10,647
Net income	13,954			12,957			13,727			39,511			44,043
Preferred stock dividends	1,076			1,075			1,076			3,226			3,226
Net income available to common shareholders	$	12,878		$	11,882		$	12,651		$	36,285		$	40,817

Ending shares outstanding	20,994,730			20,998,117			20,895,634			20,994,730			20,895,634
Average diluted common shares outstanding	20,911,862			20,893,396			20,899,744			20,895,538			20,979,032
Diluted earnings per common share	$	0.61		$	0.56		$	0.60		$	1.72		$	1.94
Cash dividends per common share	$	0.180		$	0.175		$	0.175		$	0.530		$	0.525
Dividend payout ratio	30		%	31		%	29		%	31		%	27		%


	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Average Balances
Total loans and loans held for sale	$	4,536,702		$	4,441,633		$	4,485,017		$	4,469,321		$	4,373,648
Investment securities	722,577			734,087			749,352			729,273			771,457
Total earning assets	5,503,832			5,465,645			5,273,758			5,440,145			5,194,485
Total assets	5,907,115			5,854,978			5,647,491			5,831,002			5,561,649
Noninterest-bearing deposits	795,771			761,270			792,193			764,770			805,513
Interest-bearing deposits	4,319,606			4,321,678			4,109,360			4,290,247			3,976,820
Shareholders' equity	597,984			583,221			555,464			586,017			548,034
Tangible common shareholders' equity (non-GAAP) (1)	496,091			481,309			453,493			484,105			446,048

Average Yields (annualized)
Total loans and loans held for sale	6.66		%	6.55		%	6.30		%	6.57		%	6.14		%
Investment securities	2.19		%	2.14		%	1.96		%	2.11		%	1.96		%
Total earning assets	5.98		%	5.89		%	5.63		%	5.89		%	5.48		%
Interest-bearing deposits	3.19		%	3.15		%	2.62		%	3.11		%	2.27		%
Interest-bearing liabilities	3.21		%	3.17		%	2.66		%	3.14		%	2.34		%

Performance Ratios (annualized)
Return on average assets	0.94		%	0.89		%	0.96		%	0.91		%	1.06		%
Return on average equity	9.28		%	8.94		%	9.80		%	9.01		%	10.74		%
Return on average tangible common equity (non-GAAP) (1)	10.33		%	9.93		%	11.07		%	10.01		%	12.23		%
Net interest margin, fully tax equivalent basis (non-GAAP) (1)	3.42		%	3.34		%	3.53		%	3.38		%	3.64		%
Efficiency Ratio, fully tax equivalent basis (non-GAAP) (1)	65.58		%	65.20		%	66.26		%	66.34		%	63.60		%

Net Loan Charge-Offs
CNB Bank net loan charge-offs	$	837		$	2,348		$	381		$	4,063		$	955
Holiday Financial net loan charge-offs	383			456			351			1,305			1,252
Total Corporation net loan charge-offs	$	1,220		$	2,804		$	732		$	5,368		$	2,207
Annualized net loan charge-offs / average total loans and loans held for sale	0.11		%	0.25		%	0.06		%	0.16		%	0.07		%


	September 30, 2024		June 30, 2024		September 30, 2023
Ending Balance Sheet
Cash and due from banks	$	75,214	$	56,031	$	61,529
Interest-bearing deposits with Federal Reserve	281,972		271,943		117,632
Interest-bearing deposits with other financial institutions	3,723		3,171		3,424
Total cash and cash equivalents	360,909		331,145		182,585
Debt securities available-for-sale, at fair value	378,965		359,900		335,122
Debt securities held-to-maturity, at amortized cost	328,152		354,569		391,301
Equity securities	10,389		9,654		8,948
Loans held for sale	768		642		464
Loans receivable

Syndicated loans	69,470		53,938		123,090
Loans	4,522,438		4,425,754		4,369,084
Total loans receivable	4,591,908		4,479,692		4,492,174
Less: allowance for credit losses	(46,644)		(45,532)		(45,832)
Net loans receivable	4,545,264		4,434,160		4,446,342
Goodwill and other intangibles	43,874		43,874		43,874
Core deposit intangible	223		241		299
Other assets	346,300		352,386		322,973
Total Assets	$	6,014,844	$	5,886,571	$	5,731,908

Noninterest-bearing demand deposits	$	841,292	$	762,918	$	782,996
Interest-bearing demand deposits	681,056		693,074		781,309
Savings	3,040,769		3,140,505		2,883,736
Certificates of deposit	653,832		514,348		554,740
Total deposits	5,216,949		5,110,845		5,002,781

Subordinated debentures	20,620		20,620		20,620
Subordinated notes, net of issuance costs	84,495		84,419		84,191
Other liabilities	86,417		83,987		75,104
Total liabilities	5,408,481		5,299,871		5,182,696
Common stock	—		—		—
Preferred stock	57,785		57,785		57,785
Additional paid in capital	219,304		218,756		220,100
Retained earnings	371,086		361,987		336,690
Treasury stock	(4,516)		(4,438)		(6,862)
Accumulated other comprehensive loss	(37,296)		(47,390)		(58,501)
Total shareholders' equity	606,363		586,700		549,212
Total liabilities and shareholders' equity	$	6,014,844	$	5,886,571	$	5,731,908

Book value per common share	$	26.13	$	25.19	$	23.52
Tangible book value per common share (non-GAAP) (1)	$	24.03	$	23.09	$	21.40


	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Three Months Ended,
	September 30, 2024						June 30, 2024						September 30, 2023
	Average Balance		Annual Rate		Interest Inc./Exp.		Average Balance		Annual Rate		Interest Inc./Exp.		Average Balance		Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable (1) (4)	$	690,098	2.14	%	$	3,980	$	702,036	2.09	%	$	3,941	$	711,299	1.89	%	$	3,674
Tax-exempt (1) (2) (4)	25,368		2.57		178		25,088		2.59		178		29,455		2.55		204
Equity securities (1) (2)	7,111		5.71		102		6,963		5.72		99		8,598		5.58		121
Total securities (4)	722,577		2.19		4,260		734,087		2.14		4,218		749,352		1.96		3,999
Loans receivable:
Commercial (2) (3)	1,457,192		7.02		25,708		1,416,476		6.85		24,133		1,516,942		6.72		25,693
Mortgage and loans held for sale (2) (3)	2,947,787		6.25		46,278		2,897,473		6.15		44,331		2,834,576		5.83		41,618
Consumer (3)	131,723		11.93		3,950		127,684		12.17		3,863		133,499		11.51		3,874
Total loans receivable (3)	4,536,702		6.66		75,936		4,441,633		6.55		72,327		4,485,017		6.30		71,185
Interest-bearing deposits with the Federal Reserve and other financial institutions	244,553		5.33		3,279		289,925		5.99		4,321		39,389		5.78		574
Total earning assets	5,503,832		5.98		$	83,475	5,465,645		5.89		$	80,866	5,273,758		5.63		$	75,758
Noninterest-bearing assets:
Cash and due from banks	58,472						53,710						55,502
Premises and equipment	118,404						112,386						109,854
Other assets	272,377						268,930						254,106
Allowance for credit losses	(45,970)						(45,693)						(45,729)
Total non interest-bearing assets	403,283						389,333						373,733
TOTAL ASSETS	$	5,907,115					$	5,854,978					$	5,647,491
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	682,690	0.86	%	$	1,477	$	713,431	0.76	%	$	1,342	$	813,264	0.52	%	$	1,061
Savings	3,076,351		3.55		27,461		3,097,598		3.57		27,464		2,788,499		3.13		22,004
Time	560,565		4.03		5,684		510,649		3.93		4,988		507,597		3.16		4,048
Total interest-bearing deposits	4,319,606		3.19		34,622		4,321,678		3.15		33,794		4,109,360		2.62		27,113
Short-term borrowings	—		0.00		—		—		0.00		—		6,101		5.66		87
Finance lease liabilities	236		5.06		3		259		4.66		3		328		4.84		4
Subordinated notes and debentures	105,077		4.26		1,124		105,001		4.36		1,138		104,773		4.07		1,076
Total interest-bearing liabilities	4,424,919		3.21		$	35,749	4,426,938		3.17		$	34,935	4,220,562		2.66		$	28,280
Demand—noninterest-bearing	795,771						761,270						792,193
Other liabilities	88,441						83,549						79,272
Total Liabilities	5,309,131						5,271,757						5,092,027
Shareholders’ equity	597,984						583,221						555,464
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,907,115					$	5,854,978					$	5,647,491
Interest income/Earning assets			5.98	%	$	83,475			5.89	%	$	80,866			5.63	%	$	75,758
Interest expense/Interest-bearing liabilities			3.21		35,749				3.17		34,935				2.66		28,280
Net interest spread			2.77	%	$	47,726			2.72	%	$	45,931			2.97	%	$	47,478
Interest income/Earning assets			5.98	%	83,475				5.89	%	80,866				5.63	%	75,758
Interest expense/Earning assets			2.56		35,749				2.55		34,935				2.10		28,280
Net interest margin (fully tax-equivalent)			3.42	%	$	47,726			3.34	%	$	45,931			3.53	%	$	47,478


	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Nine Months Ended,
	September 30, 2024						September 30, 2023
	Average Balance		Annual Rate		Interest Inc./Exp.		Average Balance		Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable (1) (4)	$	696,259	2.06	%	$	11,572	$	729,787	1.89	%	$	11,140
Tax-exempt (1) (2) (4)	26,063		2.58		547		31,025		2.60		646
Equity securities (1) (2)	6,951		5.69		296		10,645		4.97		396
Total securities (4)	729,273		2.11		12,415		771,457		1.96		12,182
Loans receivable:
Commercial (2) (3)	1,434,545		6.92		74,360		1,512,575		6.49		73,423
Mortgage and loans held for sale (2) (3)	2,905,301		6.16		134,012		2,733,423		5.70		116,439
Consumer (3)	129,475		11.96		11,591		127,650		11.50		10,978
Total loans receivable (3)	4,469,321		6.57		219,963		4,373,648		6.14		200,840
Interest-bearing deposits with the Federal Reserve and other financial institutions	241,551		5.58		10,085		49,380		6.01		2,221
Total earning assets	5,440,145		5.89		$	242,463	5,194,485		5.48		$	215,243
Noninterest-bearing assets:
Cash and due from banks	55,243						54,494
Premises and equipment	113,629						107,016
Other assets	267,797						250,210
Allowance for credit losses	(45,812)						(44,556)
Total non interest-bearing assets	390,857						367,164
TOTAL ASSETS	$	5,831,002					$	5,561,649
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	711,911	0.75	%	$	4,014	$	878,955	0.54	%	$	3,545
Savings	3,046,518		3.53		80,536		2,581,604		2.75		53,070
Time	531,818		3.87		15,414		516,261		2.79		10,775
Total interest-bearing deposits	4,290,247		3.11		99,964		3,976,820		2.27		67,390
Short-term borrowings	—		0.00		—		47,094		5.07		1,787
Finance lease liabilities	259		4.64		9		350		4.58		12
Subordinated notes and debentures	105,001		4.32		3,394		104,698		4.04		3,164
Total interest-bearing liabilities	4,395,507		3.14		$	103,367	4,128,962		2.34		$	72,353
Demand—noninterest-bearing	764,770						805,513
Other liabilities	84,708						79,140
Total Liabilities	5,244,985						5,013,615
Shareholders’ equity	586,017						548,034
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,831,002					$	5,561,649
Interest income/Earning assets			5.89	%	$	242,463			5.48	%	$	215,243
Interest expense/Interest-bearing liabilities			3.14		103,367				2.34		72,353
Net interest spread			2.75	%	$	139,096			3.14	%	$	142,890
Interest income/Earning assets			5.89	%	242,463				5.48	%	215,243
Interest expense/Earning assets			2.51		103,367				1.84		72,353
Net interest margin (fully tax-equivalent)			3.38	%	$	139,096			3.64	%	$	142,890


	September 30, 2024			June 30, 2024			September 30, 2023
Capital Ratios
Tangible common equity / tangible assets (non-GAAP) (1)	8.45		%	8.30		%	7.86		%
Tier 1 leverage ratio (2)	10.59		%	10.56		%	10.50		%
Common equity tier 1 ratio (2)	11.64		%	11.71		%	11.21		%
Tier 1 risk-based ratio (2)	13.30		%	13.41		%	12.92		%
Total risk-based ratio (2)	16.06		%	16.20		%	15.68		%

Asset Quality Detail
Nonaccrual loans	$	39,855		$	34,788		$	27,065
Loans 90+ days past due and accruing	666			112			231
Total nonperforming loans	40,521			34,900			27,296
Other real estate owned	1,514			1,641			2,039
Total nonperforming assets	$	42,035		$	36,541		$	29,335

Asset Quality Ratios
Nonperforming assets / Total loans + OREO	0.92		%	0.82		%	0.65		%
Nonperforming assets / Total assets	0.70		%	0.62		%	0.51		%
Ratio of allowance for credit losses on loans to nonaccrual loans	117.03		%	130.88		%	169.34		%
Allowance for credit losses / Total loans	1.02		%	1.02		%	1.02		%




Consolidated Financial Data Notes:
(1) Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
(2) Capital ratios as of September 30, 2024 are estimated pending final regulatory filings.