CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ:
CCNE), the parent company of CNB Bank, today announced its earnings
for the three and twelve months ended December 31, 2023.
Executive Summary
- Net income available to common
shareholders ("earnings") was $12.9 million, or $0.62 per diluted
share, for the three months ended December 31, 2023, compared to
earnings of $12.7 million, or $0.60 per diluted share, for the
three months ended September 30, 2023. The quarterly increase was
primarily a result of increases in net interest income and
non-interest income, partially offset by increases in certain
personnel costs and technology expenses, as discussed in more
detail below. The decrease in earnings and diluted earnings per
share comparing the quarter ended December 31, 2023 to the $14.8
million, or $0.70 per diluted share, for the quarter ended December
31, 2022 was primarily due to the significant year-over-year
increase in deposit costs primarily resulting from Federal Reserve
rate increases throughout 2023 and the resulting market impact to
CNB's deposit base.
- Earnings were $53.7 million, or
$2.55 per diluted share, for the twelve months ended December 31,
2023, compared to earnings of $58.9 million, or $3.26 per diluted
share, for the twelve months ended December 31, 2022. The decrease
in diluted earnings per share comparing the twelve months ended
December 31, 2023 to the twelve months ended December 31, 2022 was
primarily due to the rise in deposit costs year over year, as well
as the dilutive effect of the Corporation's common stock offering
completed in September 2022, which resulted in the issuance of over
4.2 million shares of common stock or an increase of approximately
25% in total common shares outstanding. In addition, during the
twelve months ended December 31, 2023, the Corporation repurchased
326,459 common shares at a weighted average price per share of
$20.08, compared to repurchases of 50,166 common shares at a
weighted average price per share of $26.75 during the twelve months
ended December 31, 2022.
- At December 31, 2023, total
deposits were $5.0 billion, reflecting a decrease of $4.0 million,
or 0.08% (0.32% annualized), from the previous quarter end of
September 30, 2023, and a full-year increase of $376.3 million, or
8.14% from December 31, 2022. The small decrease in deposit
balances compared to September 30, 2023 was primarily attributed to
continued retail deposit additions, which were more than offset by
the Corporation's non-renewal of $59.3 million in brokered time
deposits as part of its net interest management strategy. In
addition, the total number of deposit households increased by
approximately 0.11% (0.44% annualized) between September 30, 2023
and December 31, 2023. The increase in deposits compared to
December 31, 2022 was due to continued growth in the Corporation’s
treasury management customer base and resulting increases in
municipal and institutional/corporate deposits, including new
wealth and asset management deposit relationships resulting from
CNB’s participation in deposit insurance sharing programs.
Additional deposit and liquidity profile details were as follows:
- At December 31, 2023, the total
estimated uninsured deposits for CNB Bank were approximately $1.4
billion, or approximately 28.21% of total CNB Bank deposits.
However, when excluding $101.3 million of affiliate company
deposits and $400.5 million of pledged-investment collateralized
deposits, the adjusted amount and percentage of total estimated
uninsured deposits was approximately $937.1 million, or
approximately 18.37% of total CNB Bank deposits as of December 31,
2023.
- The level of uninsured deposits at
year-end 2023 was comparable to the prior quarter end. At September
30, 2023, the total estimated uninsured deposits for CNB Bank were
approximately $1.5 billion, or approximately 29.03% of total CNB
Bank deposits; however, when excluding $101.0 million of affiliate
company deposits and $440.3 million of pledged-investment
collateralized deposits, the adjusted amount and percentage of
total estimated uninsured deposits was approximately $940.4
million, or approximately 18.42% of total CNB Bank deposits as of
September 30, 2023.
- At December 31, 2023, the average
deposit balance per account for CNB Bank was approximately $33
thousand. In addition to the increasing number of treasury
management customers, CNB Bank continues to increase small business
and retail customer household deposits, including those added from
the 2023 launches of (i) CNB Bank’s “At Ease” account, a service
for U.S. service member and veteran families, and (ii) CNB’s
women-focused banking division, Impressia Bank.
- At December 31, 2023, the
Corporation had $164.4 million of cash equivalents held in CNB
Bank’s interest-bearing deposit account at the Federal Reserve.
These excess funds, when combined with (i) available borrowing
capacity of approximately $3.6 billion from the Federal Home Bank
of Pittsburgh ("FHLB") and the Federal Reserve, and (ii) available
unused commitments from brokered deposit sources and other
third-party funding channels, including previously established
lines of credit from correspondent banks, result in the total
on-hand and contingent liquidity sources for the Corporation to be
approximately 4.0 times the estimated amount of adjusted uninsured
deposit balances discussed above.
- At December 31, 2023 and September
30, 2023, the Corporation had no outstanding short-term borrowings
from the FHLB, while at December 31, 2022, the Corporation had
$132.4 million in outstanding short-term borrowings from the FHLB.
- As of December 31, 2023, the
Corporation did not have any borrowings from either the Federal
Reserve’s Discount Window or Bank Term Funding Program ("BTFP").
CNB has added the BTFP as a potential contingent liquidity source
but has not borrowed from the BTFP to date due to the general
stability and growth in the Corporation's deposit funding base
throughout 2023.
- At December 31, 2023, the
Corporation's pre-tax net unrealized losses on available-for-sale
and held-to-maturity securities totaled approximately $82.2
million, or 14.40% of total shareholders' equity, compared to
$108.8 million, or 19.81% of total shareholders' equity at
September 30, 2023. The favorable change in unrealized losses was
primarily due to lower interest rates along much of the yield curve
as of year-end 2023, compared to the third quarter of 2023,
relative to the Corporation’s scheduled bond maturities.
Importantly, all regulatory capital ratios for the Corporation
would still exceed regulatory “well-capitalized” levels as of both
December 31, 2023 and September 30, 2023 if the net unrealized
losses at the respective dates were fully recognized. Additionally,
the Corporation maintained $100.4 million of liquid funds at its
holding company, which more than covers the $82.2 million in
unrealized losses on investments held primarily in its wholly-owned
banking subsidiary, as an immediately available source of
contingent capital to be down-streamed to CNB Bank if
necessary.
- At December 31, 2023, loans totaled
$4.4 billion, excluding the balances of (i) syndicated loans, and
(ii) any remaining balances on Paycheck Protection Program ("PPP")
loans, net of PPP-related fees (such loans being referred to as the
"PPP-related loans"). This adjusted total of $4.4 billion in loans
represented a decrease of $9.3 million, or 0.21% (0.85%
annualized), from the same adjusted total loans measured as of
September 30, 2023 and an increase of $241.3 million, or 5.86%
compared to the same adjusted total loans measured as of December
31, 2022. The decrease in loans for the quarter ended December 31,
2023 was primarily driven by an increase in loan payoffs combined
with the Corporation remaining strategically focused on managing
the concentration in its commercial real estate loan portfolio, and
its loan pricing discipline in support of its net interest margin.
Loan growth for the twelve months ended December 31, 2023 was
experienced primarily in the Corporation's recent expansion markets
of Cleveland, Roanoke, and Buffalo combined with growth in the
portfolios related to the Columbus market and CNB Bank’s Private
Banking division.
- At December 31, 2023, the
Corporation's balance sheet reflected a decrease in syndicated
lending balances of $14.4 million compared to September 30, 2023
and a decrease of $49.9 million compared to December 31, 2022,
reflecting scheduled paydowns or early payoffs of certain
syndicated credits during 2023. The syndicated loan portfolio
totaled $108.7 million, or 2.43% of total loans, excluding
PPP-related loans, at December 31, 2023, compared to $123.1
million, or 2.74% of total loans, excluding PPP-related loans, at
September 30, 2023 and $156.6 million, or 3.66% of total loans,
excluding PPP-related loans at December 31, 2022.
- Total nonperforming assets were
approximately $31.8 million, or 0.55% of total assets, as of
December 31, 2023, compared to $29.3 million, or 0.51% of total
assets, as of September 30, 2023, and $23.5 million, or 0.43% of
total assets, as of December 31, 2022. The increase in
nonperforming assets for the three months ended December 31, 2023
was due to one commercial and industrial relationship consisting of
12 loans totaling $3.2 million being placed on nonaccrual during
the fourth quarter of 2023. The 12 loans combined have a related
specific reserve of $1.7 million. The increase in non-performing
assets for the twelve months ended December 31, 2023 was due to the
previously mentioned commercial and industrial relationship,
coupled with one commercial real estate relationship consisting of
two loans totaling $6.6 million being placed on nonaccrual during
the third quarter of 2023, as previously disclosed by the
Corporation. The commercial relationship with two loans placed on
nonaccrual in the third quarter have a related combined specific
loss reserve of approximately $472 thousand at December 31, 2023.
While this loan relationship was placed on non-accrual status
during the third quarter of 2023, based on collateral value support
coupled with the specific reserve recorded against this loan
relationship, management does not believe there is risk of
significant additional loss exposure beyond the specific reserve
related to this loan relationship. For the three months ended
December 31, 2023, net loan charge-offs were $1.2 million, or 0.11%
(annualized) of average total loans and loans held for sale,
compared to $732 thousand, or 0.06% (annualized) of average total
loans and loans held for sale, during the three months ended
September 30, 2023, and $821 thousand, or 0.08% (annualized) of
average total loans and loans held for sale, during the three
months ended December 31, 2022. The increase in net loan
charge-offs during the quarter ended December 31, 2023 was
primarily related to one commercial and industrial relationship
consisting of three loans totaling $192 thousand and one commercial
real estate relationship consisting of one loan that totaled $359
thousand.
- Pre-provision net revenue ("PPNR"),
a non-GAAP measure, was $18.4 million for the three months ended
December 31, 2023, compared to $18.2 million and $22.8 million for
the three months ended September 30, 2023 and December 31, 2022,
respectively. The fourth-quarter 2023 PPNR reflected increases in
net interest income and non-interest income, partially offset by
increases in certain personnel costs as well as technology
expenses, as discussed in more detail below.1 The decrease in PPNR
for the three months ended December 31, 2023 compared to the three
months ended December 31, 2022 was primarily attributable to the
significant year-over-year increase in deposit costs. PPNR was
$77.8 million for the twelve months ended December 31, 2023,
compared to $86.8 million for the twelve months ended December 31,
2022.1 The decrease in PPNR for the twelve months ended December
31, 2023 compared to the twelve months ended December 31, 2022 was
primarily driven by the increase in deposit costs combined with the
growth in technology expenses due to investments in applications
aimed at enhancing both customer relationship management and
customer online experience, as well as expanding service delivery
channels. In addition, the Corporation had a year-over-year
decrease in non-interest income as a result of lower pass-through
income from small business investment companies ("SBICs").
1 This release contains references to certain
financial measures that are not defined under U.S. Generally
Accepted Accounting Principles ("GAAP"). 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. A reconciliation of these non-GAAP
financial measures is provided in the "Reconciliation of Non-GAAP
Financial Measures" section.
Reflecting on both the fourth quarter and
full-year 2023 results, Michael D. Peduzzi, President and CEO of
both the Corporation and CNB Bank, stated, “Our performance
reflects the stability of both our loan, deposit, and wealth
management customer bases as we managed through the significant
increases in deposit costs during the year associated with the
Federal Reserve rate increases and resulting impact across the
entire banking industry. Despite positive organic loan growth and
rising loan yields resulting in higher interest income, the
material increases in deposit rates and costs resulted in overall
flat net interest income growth in our primary source of revenue –
our spread business. While we experienced favorable increases in
certain noninterest income activities, including fees earned for
our growing treasury management service business, the market rate
increases significantly muted mortgage loan demand, reducing both
mortgage loan production and related secondary market sales and
gains. Respective of these revenue growth challenges, the
Corporation continues to tightly manage its overhead, and
particularly our personnel costs which generally account for about
half of our noninterest expenses.
At the same time as we remain extremely
cost-conscious with personnel management and use of third-party
professional services and vendors, we look to effectively deploy
our recent years' investments in technology which contributed to
our increased technology costs for 2023. During the year, we
activated significant elements of a comprehensive Customer
Relationship Management and sales supportive systems, and
successfully completed the implementation of our digital
new-account-opening capabilities that allow both commercial and
retail customers to open and fund deposit relationships, all
online. We also have expanded our deployment of Enhanced Teller
Machines, or ETMs, that dually serve as both traditional ATMs and
as an electronic channel to connect to our live service agents at
our Customer Service Center, which provide for expanded customer
hours outside of the traditional business day, while also reducing
the need for higher cost retail personnel staffing. Our women’s
banking division, Impressia Bank, continues to develop leads and
opportunities with women-owned small businesses and retail
relationships since our 2023 launches in our Cleveland and
Columbus, Ohio markets and our Erie, Pennsylvania market. I was
also pleased with the early response to our 2023 launch of our “At
Ease” deposit accounts which focus on providing valuable deposit
account rates and services to our service members and veterans.
We remain consistent with our historic asset
quality management principles supported by our strict adherence to
our traditionally conservative underwriting policy and
concentration limits. We continue to employ established and
regularly updated stress testing and risk management activities to
avoid undue adverse exposure to more economically-sensitive
commercial and industrial segments, as well as the various
commercial real estate market segments. Though higher market rates
and general inflationary conditions are impacting demand for many
commercial and real estate business segments, we remain actively
engaged with proven, qualitative commercial business relationships
across all of our markets to be relevant providers of
appropriately-priced loan opportunities to creditworthy
customers.
Our CNB Bank capital levels and liquidity
sources, both on-hand and contingently available, remain very sound
and stable, and our overall profitability and capital management
allows us to maintain our quarterly dividends at similar levels as
in prior quarters.
As we remain committed to our core strategic
initiatives while maintaining our disciplined asset-liability
management and credit quality approaches, including thorough and
continuous risk management activities, a significant focus of our
near-term strategic efforts is to thoroughly and comprehensively
challenge our overhead expense base and find efficiencies to
promote our achievement of positive operating leverage."
Other Balance Sheet
Highlights
- Book value per common share was
$24.57 at December 31, 2023, reflecting an increase from $23.52 at
September 30, 2023 and $22.39 at December 31, 2022. Tangible book
value per common share, a non-GAAP measure, was $22.46 as of
December 31, 2023, reflecting an increase of $1.06, or 19.65%
(annualized) from $21.40 as of September 30, 2023 and an increase
of $2.16, or 10.64%, from $20.30 as of December 31, 2022.1 The
positive increases in book value per common share and tangible book
value per common share compared to September 30, 2023 were
primarily due to a $9.2 million increase in retained earnings
combined with an $12.4 million decrease in accumulated other
comprehensive loss primarily from the after-tax impact of temporary
unrealized valuation changes in the Corporation’s
available-for-sale investment portfolio in the fourth quarter of
2023. The increases in book value per common share and tangible
book value per common share compared to December 31, 2022 were
primarily due to a $39.0 million increase in retained earnings
combined with a $6.4 million decrease in accumulated other
comprehensive loss primarily from the after-tax impact of temporary
unrealized valuation changes in the Corporation’s
available-for-sale investment portfolio, partially offset by a $3.9
million increase in treasury stock driven by the repurchase of
326,459 common shares at a weighted average price per share of
$20.08 during 2023. The unrealized valuation changes in the
Corporation’s investments were resulting from the 2023 market yield
curve changes relative to the scheduled maturities of the
Corporation’s holdings.
Loan Portfolio Profile
- As part of our lending policy and
risk management activities, the Corporation tracks lending exposure
by industry classification and type to determine potential risks
associated with industry concentrations, and if any risk issues
could lead to additional credit loss exposure. In the current
post-pandemic and inflationary economic environment, the
Corporation has determined that office commercial real estate
("commercial office") inherently could pose a higher level of
credit risk, even given the historical high credit quality ratings
and structures applied to the Corporation's outstanding commercial
office credit extensions when initially underwritten and funding or
commitments were made. The Corporation monitors numerous relevant
sensitivity elements at both underwriting and through and beyond
the funding period, including projects occupancy, loan-to-value,
absorption and cap rates, debt service coverage and covenant
compliance, and developer/lessor financial strength both in the
project and globally. At December 31, 2023, the Corporation had the
following key metrics related to its commercial office portfolio:
- Commercial office loans outstanding
consisted of 118 loans, totaling $114.7 million, or 2.57%, of total
loans outstanding;
- Nonaccrual commercial office loans
(one customer relationships) totaled $508 thousand, or 0.44% of
total office loans outstanding. One customer relationship had a
related specific loss reserve of approximately $289 thousand, at
December 31, 2023; and
- The average outstanding balance per
commercial office loan was $972 thousand.
The Corporation had no commercial office loan
relationships considered by the banking regulators to be a high
volatility commercial real estate credit.
Performance Ratios
- Annualized return on average equity
was 9.97% for the three months ended December 31, 2023, compared to
9.80% and 12.45% for the three months ended September 30, 2023 and
December 31, 2022, respectively. Annualized return on average
equity was 10.54% for the twelve months ended December 31, 2023,
compared to 13.86% for the twelve months ended December 31,
2022.
- Annualized return on average
tangible common equity, a non-GAAP measure, was 11.27% for the
three months ended December 31, 2023, compared to 11.07% and 14.54%
for the three months ended September 30, 2023 and December 31,
2022, respectively.1 Annualized return on average tangible common
equity, a non-GAAP measure, was 11.98% for the twelve months ended
December 31, 2023, compared to 16.64% for the twelve months ended
December 31, 2022.1
- While the previously discussed
common equity capital raise completed in September 2022
significantly enhanced the Corporation’s overall capital position,
it also adversely impacted certain equity and per-share performance
ratios for the twelve months ended December 31, 2023 and the
related comparison to December 31, 2022.
- The Corporation's efficiency ratio
was 67.66% for the three months ended December 31, 2023, compared
to 67.00% and 61.87% for the three months ended September 30, 2023
and December 31, 2022, respectively. The efficiency ratio on a
fully tax-equivalent basis, a non-GAAP measure, was 66.93% for the
three months ended December 31, 2023, compared to 66.26% and 61.40%
for the three months ended September 30, 2023 and December 31,
2022, respectively.1 The increase for the three months ended
December 31, 2023 compared to September 30, 2023 was, as previously
discussed, primarily the result of rising deposit costs coupled
with an increase in quarterly personnel costs as a result of timing
of incentive compensation accruals and health insurance expenses,
as well as technology expenses related to a one-time contract
renegotiation cost. The Corporation's efficiency ratio was 65.13%
for the twelve months ended December 31, 2023, compared to 61.32%
for the twelve months ended December 31, 2022. The efficiency ratio
on a fully tax-equivalent basis, a non-GAAP ratio, was 64.45% for
the twelve months ended December 31, 2023, compared to 60.87% the
twelve months ended December 31, 2022.1
Revenue
- Total revenue (net interest income
plus non-interest income) was $56.8 million for the three months
ended December 31, 2023, compared to $55.1 million and $59.8
million for the three months ended September 30, 2023 and December
31, 2022, respectively.
- Net interest income was $47.7
million for the three months ended December 31, 2023, compared to
$47.2 million and $50.8 million, for the three months ended
September 30, 2023 and December 31, 2022, respectively. When
comparing the fourth quarter of 2023 to the third quarter of 2023,
the increase in net interest income of $458 thousand, or 0.97%,
(3.85% annualized) included approximately $1.4 million in
nonrecurring interest income related primarily to payoffs in the
syndicated loan portfolio. When comparing the fourth quarter of
2023 to the fourth quarter of 2022, the decrease in net interest
income of $3.1 million, or 6.18% was attributable to an increase in
the Corporation's interest expense as a result of the
year-over-year previously noted deposit rate increases, as well as
targeted interest-bearing deposit rate increases to ensure both
deposit relationship retention, and new deposit growth in recently
entered expansion markets.
- Net interest margin was 3.54%,
3.55% and 4.07% for the three months ended December 31, 2023,
September 30, 2023 and December 31, 2022, respectively. Net
interest margin on a fully tax-equivalent basis, a non-GAAP
measure, was 3.51%, 3.53% and 4.03%, for the three months ended
December 31, 2023, September 30, 2023 and December 31, 2022,
respectively.1 Included in the net interest margin and the net
interest margin on a fully tax-equivalent basis for the three
months ended December 31, 2023 is approximately $1.4 million, or 10
basis points, in nonrecurring interest income related primarily to
payoffs in the syndicated loan portfolio.
- The yield on earning assets of
5.82% for the three months ended December 31, 2023 increased 19
basis points and 87 basis points from September 30, 2023 and
December 31, 2022, respectively. The yield on earning assets for
the three months ended December 31, 2023 included the previously
mentioned $1.4 million, or 10 basis points, in syndicated loan
one-time interest income. Additionally, the increase in yield was
attributable to the net benefit of higher interest rates on both
variable-rate loans and new loan production.
- The cost of interest-bearing
liabilities of 2.89% for the three months ended December 31, 2023
increased 23 basis points and 169 basis points from September 30,
2023 and December 31, 2022, respectively, primarily as a result of
the Corporation’s targeted interest-bearing deposit rate increases
in response to the competitive environment from numerous Fed rate
hikes over the past year, and deposit retention and growth
initiatives.
- Total revenue was $223.2 million
for the twelve months ended December 31, 2023, compared to $224.4
million for the twelve months ended December 31, 2022.
- Net interest income was $189.8
million for the twelve months ended December 31, 2023, compared to
$189.7 million for the twelve months ended December 31, 2022. The
increase of $170 thousand, or 0.09%, was due to loan growth and the
benefits of the impact of rising interest rates resulting in
greater income on variable-rate loans and new loan production,
which was substantially offset by an increase in the Corporation's
interest expense as a result of both (i) targeted interest-bearing
deposit rate increases to ensure both deposit growth and retention,
and (ii) a year-over-year increase in the average balance of
short-term borrowings through the FHLB. In addition, as previously
mentioned, net interest income for the twelve months ended December
31, 2023 included $1.4 million in nonrecurring interest income
related primarily to payoffs in the syndicated loan portfolio.
- Net interest margin was 3.63% and
3.83% for the twelve months ended December 31, 2023 and 2022,
respectively. Net interest margin on a fully tax-equivalent basis,
a non-GAAP measure, was 3.61% and 3.82% for the twelve months ended
December 31, 2023 and 2022, respectively.1 Included in the net
interest margin and the net interest margin on a fully
tax-equivalent basis for the twelve months ended December 31, 2023
is approximately $1.4 million, or three basis points, in one-time
realized interest income related primarily to payoffs in the
syndicated loan portfolio.
- The yield on earning assets for the
twelve months ended December 31, 2023 was 5.57%, an increase of 127
basis points from December 31, 2022. The increase was primarily a
result of loan growth and the net benefit of higher interest rates
on both variable-rate loans and new loan production. The yield on
earning assets for the twelve months ended December 31, 2023
included the previously mentioned $1.4 million, or three basis
points, in one-time syndicated loan interest income.
- The cost of interest-bearing
liabilities for the twelve months ended December 31, 2023 was
2.49%, an increase of 187 basis points from December 31, 2022. The
increase was primarily a result of the Corporation’s targeted
interest-bearing deposit rate increases and some costs of
occasional short-term borrowings through the FHLB in 2023.
- Total non-interest income was $9.1
million for the three months ended December 31, 2023, compared to
$7.9 million and $9.0 million for the three months ended September
30, 2023 and December 31, 2022, respectively. During the three
months ended December 31, 2023, notable changes compared to the
three months ended September 30, 2023, included an increase in net
realized and unrealized changes in equity securities and an
increase in quarterly other non-interest income primarily driven by
higher pass-through income from SBICs.
- Total non-interest income was $33.3
million for the twelve months ended December 31, 2023, compared to
$34.8 million for the twelve months ended December 31, 2022. During
the twelve months ended December 31, 2023, notable changes compared
to the twelve months ended December 31, 2022 included lower net
realized gains on the sale of available-for-sale debt securities,
lower mortgage banking income from reduced mortgage loan production
volume in the higher-rate environment, lower level of full-year
bank owned life insurance income and pass-through income from
SBICs, partially offset by an increase in card processing and
interchange income and a favorable variance in unrealized losses on
equity securities.
Non-Interest Expense
- For the three months ended December
31, 2023, total non-interest expense was $38.5 million, compared to
$36.9 million and $37.0 million for the three months ended
September 30, 2023 and December 31, 2022, respectively. The
increase of $1.5 million, or 4.16%, from the three months ended
September 30, 2023, was primarily a result of an increase in
salaries and benefits and technology expenses. The increases in
salaries and benefits were primarily driven by timing of incentive
compensation accruals coupled with higher health insurance expenses
and deferred compensation expenses. The increase in technology
expenses was the result of approximately $394 thousand in one-time
contract restructuring costs.
- For the twelve months ended
December 31, 2023, total non-interest expense was $145.3 million,
compared to $137.6 million for the twelve months ended December 31,
2022. The increase of $7.7 million, or 5.61%, from the twelve
months ended December 31, 2022 was primarily a result of higher
occupancy costs combined with higher technology expenses. In
addition, other non-interest expenses increased primarily due to
business generation related expenses and consulting fees.
Furthermore, full-year base-salary and related benefit increases,
intended to account for inflationary merit increases and the
addition of personnel to staff new offices in 2023, were
substantially offset by an approximately $8.1 million reduction in
incentive-related expenses.
Income Taxes
- Income tax expense for the three
months ended December 31, 2023 was $3.2 million, representing an
18.45% effective tax rate, compared to $3.4 million, representing a
19.86% effective tax rate for the three months ended September 30,
2023 and $4.0 million, representing a 20.08% effective tax rate for
the three months ended December 31, 2022. Income tax expense was
$13.8 million, representing a 19.22% effective tax rate, for the
twelve months ended December 31, 2023, compared to $15.0 million,
representing a 19.21% effective tax rate for the twelve months
ended December 31, 2022.
Asset Quality
- Total nonperforming assets were
approximately $31.8 million, or 0.55% of total assets, as of
December 31, 2023, compared to $29.3 million, or 0.51% of total
assets, as of September 30, 2023, and $23.5 million, or 0.43% of
total assets, as of December 31, 2022, as discussed above.
- The allowance for credit losses
measured as a percentage of total loans was 1.03% as of December
31, 2023, 1.02% as of September 30, 2023, and 1.02% as of December
31, 2022. In addition, the allowance for credit losses as a
percentage of nonaccrual loans was 154.63% as of December 31, 2023,
compared to 169.34% and 206.98% as of September 30, 2023 and
December 31, 2022, respectively. The decrease in the allowance for
credit losses as a percentage of nonaccrual loans was primarily
attributable to the higher level of nonperforming assets, as
discussed above.
- The provision for credit losses was
$1.2 million for the three months ended December 31, 2023, compared
to $1.1 million and $3.0 million for the three months ended
September 30, 2023 and December 31, 2022, respectively. The $186
thousand increase in the provision expense for the fourth quarter
of 2023 compared to the third quarter of 2023 was primarily a
result of higher net charge-offs, as discussed above.
- The provision for credit losses was
$6.0 million for the twelve months ended December 31, 2023,
compared to $8.6 million for the twelve months ended December 31,
2022. Included in the provision for credit losses for the twelve
months ended December 31, 2023, was a $156 thousand expense related
to the allowance for unfunded commitments compared to $603 thousand
for the twelve months ended December 31, 2022. The $2.6 million
reduction in the provision expense for the twelve months ended
December 31, 2023 compared to the twelve months ended December 31,
2022 was primarily a result of the lower loan portfolio
growth.
- For the three months ended December
31, 2023, net loan charge-offs were $1.2 million, or 0.11%
(annualized) of average total loans and loans held for sale,
compared to $732 thousand, or 0.06% (annualized) of average total
loans and loans held for sale, during the three months ended
September 30, 2023, and $821 thousand, or 0.08% (annualized) of
average total loans and loans held for sale, during the three
months ended December 31, 2022, as discussed above.
- For the twelve months ended
December 31, 2023, net loan charge-offs were $3.4 million, or 0.08%
of average total loans and loans held for sale, compared to $2.1
million, or 0.05% of average total loans and loans held for sale,
during the twelve months ended December 31, 2022.
Capital
- As of December 31, 2023, the
Corporation’s total shareholders’ equity was $571.2 million,
representing an increase of $22.0 million, or 4.01%, from September
30, 2023 and $40.5 million, or 7.63%, from December 31, 2022
primarily due to (i) improvements in accumulated other
comprehensive losses resulting primarily from a reduction in
after-tax temporary unrealized losses in the available-for-sale
investment portfolio, and (ii) an increase in the Corporation's
retained earnings (quarterly net income, partially offset by the
common and preferred dividends paid in the quarter). These were
partially offset by an increase in the Corporation's treasury stock
as a result of the Corporation's repurchase of 326,459 common
shares during the twelve months of 2023.
- Regulatory capital ratios for the
Corporation continue to exceed regulatory “well-capitalized” levels
as of December 31, 2023, consistent with prior periods.
- As of December 31, 2023, the
Corporation’s ratio of common shareholders' equity to total assets
was 8.93% compared to 8.57% at September 30, 2023 and 8.64% at
December 31, 2022. As of December 31, 2023, the Corporation’s ratio
of tangible common equity to tangible assets, a non-GAAP measure,
was 8.22% compared to 7.86% at September 30, 2023 and 7.90% as of
December 31, 2022. This increase compared to September 30, 2023 and
December 31, 2022, was the result of an improvement in accumulated
other comprehensive losses and an increase in retained earnings,
partially offset by an increase in treasury stock due to the
Corporation's share repurchase activities in 2023.1
About CNB Financial
Corporation
CNB Financial Corporation is a financial holding
company with consolidated assets of approximately $5.8 billion. CNB
Financial Corporation conducts business primarily through its
principal subsidiary, CNB Bank. CNB Bank is a full-service bank
engaging in a full range of banking activities and services,
including trust and wealth management services, for individual,
business, governmental, and institutional customers. CNB Bank
operations include a private banking division, two loan production
offices, one drive-up office, one mobile office, and 51
full-service offices in Pennsylvania, Ohio, New York, and Virginia.
CNB Bank's divisions include ERIEBANK, based in Erie, Pennsylvania,
with offices in Northwest Pennsylvania and Northeast Ohio; FCBank,
based in Worthington, Ohio, with offices in Central Ohio;
BankOnBuffalo, based in Buffalo, New York, with offices in Western
New York; Ridge View Bank, based in Roanoke, Virginia, with offices
in the Southwest Virginia region; and Impressia Bank, a division
focused on banking opportunities for women, which operates in CNB
Bank's primary market areas. CNB Bank is headquartered in
Clearfield, Pennsylvania, with offices in Central and North Central
Pennsylvania. Additional information about CNB Financial
Corporation may be found at www.CNBBank.bank.
Forward-Looking Statements
This press release includes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, with respect to CNB’s financial condition,
liquidity, results of operations, future performance and business.
These forward-looking statements are intended to be covered by the
safe harbor for “forward-looking statements” provided by the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are those that are not historical facts. Forward-looking
statements include statements with respect to beliefs, plans,
objectives, goals, expectations, anticipations, estimates and
intentions that are subject to significant risks and uncertainties
and are subject to change based on various factors (some of which
are beyond CNB’s control). Forward-looking statements often include
the words “believes,” “expects,” “anticipates,” “estimates,”
“forecasts,” “intends,” “plans,” “targets,” “potentially,”
“probably,” “projects,” “outlook” or similar expressions or future
conditional verbs such as “may,” “will,” “should,” “would” and
“could.” CNB’s actual results may differ materially from those
contemplated by the forward-looking statements, which are neither
statements of historical fact nor guarantees or assurances of
future performance. Such known and unknown risks, uncertainties and
other factors that could cause the actual results to differ
materially from the statements, include, but are not limited to,
(i) adverse changes or conditions in capital and financial markets,
including actual or potential stresses in the banking industry;
(ii) changes in interest rates; (iii) the duration and scope of a
pandemic, including the lingering impacts of the COVID-19 pandemic,
and the local, national and global impact of a pandemic; (iv)
changes in general business, industry or economic conditions or
competition; (v) changes in any applicable law, rule, regulation,
policy, guideline or practice governing or affecting financial
holding companies and their subsidiaries or with respect to tax or
accounting principles or otherwise; (vi) higher than expected costs
or other difficulties related to integration of combined or merged
businesses; (vii) the effects of business combinations and other
acquisition transactions, including the inability to realize our
loan and investment portfolios; (viii) changes in the quality or
composition of our loan and investment portfolios; (ix) adequacy of
loan loss reserves; (x) increased competition; (xi) loss of certain
key officers; (xii) deposit attrition; (xiii) rapidly changing
technology; (xiv) unanticipated regulatory or judicial proceedings
and liabilities and other costs; (xv) changes in the cost of funds,
demand for loan products or demand for financial services; and
(xvi) other economic, competitive, governmental or technological
factors affecting our operations, markets, products, services and
prices. Such developments could have an adverse impact on CNB's
financial position and results of operations. For more information
about factors that could cause actual results to differ from those
discussed in the forward-looking statements, please refer to the
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of and the
forward-looking statement disclaimers in CNB’s annual and quarterly
reports filed with the Securities and Exchange Commission.
The forward-looking statements are based upon
management’s beliefs and assumptions and are made as of the date of
this press release. Factors or events that could cause CNB’s actual
results to differ may emerge from time to time, and it is not
possible for CNB to predict all of them. CNB undertakes no
obligation to publicly update or revise any forward-looking
statements included in this press release or to update the reasons
why actual results could differ from those contained in such
statements, whether as a result of new information, future events
or otherwise, except to the extent required by law. In light of
these risks, uncertainties and assumptions, the forward-looking
events discussed in this press release might not occur and you
should not put undue reliance on any forward-looking
statements.
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Income Statement |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
73,014 |
|
|
$ |
70,980 |
|
|
$ |
57,781 |
|
|
$ |
273,220 |
|
|
$ |
194,149 |
|
Processing fees on PPP loans |
|
0 |
|
|
|
0 |
|
|
|
19 |
|
|
|
3 |
|
|
|
1,889 |
|
Interest and dividends on securities and cash and cash
equivalents |
|
6,194 |
|
|
|
4,536 |
|
|
|
4,645 |
|
|
|
20,473 |
|
|
|
17,700 |
|
Interest expense |
|
(31,514 |
) |
|
|
(28,280 |
) |
|
|
(11,612 |
) |
|
|
(103,867 |
) |
|
|
(24,079 |
) |
Net interest income |
|
47,694 |
|
|
|
47,236 |
|
|
|
50,833 |
|
|
|
189,829 |
|
|
|
189,659 |
|
Provision for credit losses |
|
1,242 |
|
|
|
1,056 |
|
|
|
2,950 |
|
|
|
5,993 |
|
|
|
8,589 |
|
Net interest income after provision for credit losses |
|
46,452 |
|
|
|
46,180 |
|
|
|
47,883 |
|
|
|
183,836 |
|
|
|
181,070 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
Wealth and asset management fees |
|
1,684 |
|
|
|
1,833 |
|
|
|
1,716 |
|
|
|
7,251 |
|
|
|
7,172 |
|
Service charges on deposit accounts |
|
1,803 |
|
|
|
1,861 |
|
|
|
1,806 |
|
|
|
7,372 |
|
|
|
7,206 |
|
Other service charges and fees |
|
727 |
|
|
|
567 |
|
|
|
943 |
|
|
|
3,010 |
|
|
|
3,196 |
|
Net realized gains on available-for-sale securities |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
52 |
|
|
|
651 |
|
Net realized and unrealized losses on equity securities |
|
543 |
|
|
|
(400 |
) |
|
|
284 |
|
|
|
(387 |
) |
|
|
(1,149 |
) |
Mortgage banking |
|
160 |
|
|
|
172 |
|
|
|
172 |
|
|
|
676 |
|
|
|
1,237 |
|
Bank owned life insurance |
|
734 |
|
|
|
754 |
|
|
|
655 |
|
|
|
2,945 |
|
|
|
3,433 |
|
Card processing and interchange income |
|
2,082 |
|
|
|
2,098 |
|
|
|
2,021 |
|
|
|
8,301 |
|
|
|
7,797 |
|
Other non-interest income |
|
1,404 |
|
|
|
978 |
|
|
|
1,410 |
|
|
|
4,115 |
|
|
|
5,223 |
|
Total non-interest income |
|
9,137 |
|
|
|
7,863 |
|
|
|
9,007 |
|
|
|
33,335 |
|
|
|
34,766 |
|
Non-interest expenses |
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
19,200 |
|
|
|
17,758 |
|
|
|
18,800 |
|
|
|
71,062 |
|
|
|
71,460 |
|
Net occupancy expense of premises |
|
3,719 |
|
|
|
3,596 |
|
|
|
3,358 |
|
|
|
14,509 |
|
|
|
13,298 |
|
Technology expense |
|
5,525 |
|
|
|
5,232 |
|
|
|
5,093 |
|
|
|
20,202 |
|
|
|
17,041 |
|
Advertising expense |
|
1,048 |
|
|
|
840 |
|
|
|
1,021 |
|
|
|
3,133 |
|
|
|
2,887 |
|
State and local taxes |
|
1,018 |
|
|
|
1,028 |
|
|
|
957 |
|
|
|
4,126 |
|
|
|
4,078 |
|
Legal, professional, and examination fees |
|
1,247 |
|
|
|
1,320 |
|
|
|
1,141 |
|
|
|
4,414 |
|
|
|
4,173 |
|
FDIC insurance premiums |
|
978 |
|
|
|
1,027 |
|
|
|
654 |
|
|
|
3,879 |
|
|
|
2,796 |
|
Card processing and interchange expenses |
|
756 |
|
|
|
1,207 |
|
|
|
1,315 |
|
|
|
5,025 |
|
|
|
4,801 |
|
Other non-interest expense |
|
4,959 |
|
|
|
4,906 |
|
|
|
4,682 |
|
|
|
18,992 |
|
|
|
17,088 |
|
Total non-interest expenses |
|
38,450 |
|
|
|
36,914 |
|
|
|
37,021 |
|
|
|
145,342 |
|
|
|
137,622 |
|
Income before income taxes |
|
17,139 |
|
|
|
17,129 |
|
|
|
19,869 |
|
|
|
71,829 |
|
|
|
78,214 |
|
Income tax expense |
|
3,162 |
|
|
|
3,402 |
|
|
|
3,989 |
|
|
|
13,809 |
|
|
|
15,026 |
|
Net income |
|
13,977 |
|
|
|
13,727 |
|
|
|
15,880 |
|
|
|
58,020 |
|
|
|
63,188 |
|
Preferred stock dividends |
|
1,076 |
|
|
|
1,076 |
|
|
|
1,076 |
|
|
|
4,302 |
|
|
|
4,302 |
|
Net income available to common shareholders |
$ |
12,901 |
|
|
$ |
12,651 |
|
|
$ |
14,804 |
|
|
$ |
53,718 |
|
|
$ |
58,886 |
|
|
|
|
|
|
|
|
|
|
|
Ending shares outstanding |
|
20,896,439 |
|
|
|
20,895,634 |
|
|
|
21,121,346 |
|
|
|
20,896,439 |
|
|
|
21,121,346 |
|
Average diluted common shares outstanding |
|
20,841,528 |
|
|
|
20,899,744 |
|
|
|
21,092,770 |
|
|
|
20,944,376 |
|
|
|
18,019,604 |
|
Diluted earnings per common share |
$ |
0.62 |
|
|
$ |
0.60 |
|
|
$ |
0.70 |
|
|
$ |
2.55 |
|
|
$ |
3.26 |
|
Cash dividends per common share |
$ |
0.175 |
|
|
$ |
0.175 |
|
|
$ |
0.175 |
|
|
$ |
0.700 |
|
|
$ |
0.700 |
|
Dividend payout ratio |
|
28 |
% |
|
|
29 |
% |
|
|
25 |
% |
|
|
27 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Average Balances |
|
|
|
|
|
|
|
|
|
Total loans and loans held for sale |
$ |
4,463,644 |
|
|
$ |
4,485,017 |
|
|
$ |
4,123,857 |
|
|
$ |
4,396,341 |
|
|
$ |
3,897,722 |
|
Investment securities |
|
730,050 |
|
|
|
749,352 |
|
|
|
787,259 |
|
|
|
760,976 |
|
|
|
813,172 |
|
Total earning assets |
|
5,343,817 |
|
|
|
5,273,758 |
|
|
|
4,959,490 |
|
|
|
5,232,117 |
|
|
|
4,954,547 |
|
Total assets |
|
5,719,313 |
|
|
|
5,647,491 |
|
|
|
5,311,790 |
|
|
|
5,601,371 |
|
|
|
5,284,213 |
|
Noninterest-bearing deposits |
|
759,781 |
|
|
|
792,193 |
|
|
|
874,131 |
|
|
|
793,713 |
|
|
|
847,793 |
|
Interest-bearing deposits |
|
4,217,771 |
|
|
|
4,109,360 |
|
|
|
3,714,040 |
|
|
|
4,037,554 |
|
|
|
3,796,642 |
|
Shareholders' equity |
|
556,245 |
|
|
|
555,464 |
|
|
|
505,992 |
|
|
|
550,333 |
|
|
|
455,748 |
|
Tangible common shareholders' equity (non-GAAP)(1) |
|
454,294 |
|
|
|
453,493 |
|
|
|
404,079 |
|
|
|
448,355 |
|
|
|
353,800 |
|
|
|
|
|
|
|
|
|
|
|
Average Yields (annualized) |
|
|
|
|
|
|
|
|
|
Total loans and loans held for sale |
|
6.51 |
% |
|
|
6.30 |
% |
|
|
5.58 |
% |
|
|
6.23 |
% |
|
|
5.06 |
% |
Investment securities |
|
1.96 |
% |
|
|
1.96 |
% |
|
|
1.90 |
% |
|
|
1.96 |
% |
|
|
1.85 |
% |
Total earning assets |
|
5.82 |
% |
|
|
5.63 |
% |
|
|
4.95 |
% |
|
|
5.57 |
% |
|
|
4.30 |
% |
Interest-bearing deposits |
|
2.86 |
% |
|
|
2.62 |
% |
|
|
1.09 |
% |
|
|
2.42 |
% |
|
|
0.52 |
% |
Interest-bearing liabilities |
|
2.89 |
% |
|
|
2.66 |
% |
|
|
1.20 |
% |
|
|
2.49 |
% |
|
|
0.62 |
% |
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized) |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.97 |
% |
|
|
0.96 |
% |
|
|
1.19 |
% |
|
|
1.04 |
% |
|
|
1.20 |
% |
Return on average equity |
|
9.97 |
% |
|
|
9.80 |
% |
|
|
12.45 |
% |
|
|
10.54 |
% |
|
|
13.86 |
% |
Return on average tangible common equity (non-GAAP)(1) |
|
11.27 |
% |
|
|
11.07 |
% |
|
|
14.54 |
% |
|
|
11.98 |
% |
|
|
16.64 |
% |
Net interest margin, fully tax equivalent basis (non-GAAP)(1) |
|
3.51 |
% |
|
|
3.53 |
% |
|
|
4.03 |
% |
|
|
3.61 |
% |
|
|
3.82 |
% |
Efficiency Ratio, fully tax equivalent basis (non-GAAP)(1) |
|
66.93 |
% |
|
|
66.26 |
% |
|
|
61.40 |
% |
|
|
64.45 |
% |
|
|
60.87 |
% |
|
|
|
|
|
|
|
|
|
|
Net Loan Charge-Offs |
|
|
|
|
|
|
|
|
|
CNB Bank net loan charge-offs |
$ |
747 |
|
|
$ |
381 |
|
|
$ |
437 |
|
|
$ |
1,702 |
|
|
$ |
694 |
|
Holiday Financial net loan charge-offs |
|
487 |
|
|
|
351 |
|
|
|
384 |
|
|
|
1,739 |
|
|
|
1,444 |
|
Total Corporation net loan charge-offs |
$ |
1,234 |
|
|
$ |
732 |
|
|
$ |
821 |
|
|
$ |
3,441 |
|
|
$ |
2,138 |
|
Annualized net loan charge-offs / average total loans and loans
held for sale |
|
0.11 |
% |
|
|
0.06 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
Ending Balance Sheet |
|
|
|
|
|
Cash and due from banks |
$ |
54,789 |
|
|
$ |
61,529 |
|
|
$ |
58,884 |
|
Interest-bearing deposits with Federal Reserve |
|
164,385 |
|
|
|
117,632 |
|
|
|
43,401 |
|
Interest-bearing deposits with other financial institutions |
|
2,872 |
|
|
|
3,424 |
|
|
|
4,000 |
|
Total cash and cash equivalents |
|
222,046 |
|
|
|
182,585 |
|
|
|
106,285 |
|
Debt securities available-for-sale, at fair value |
|
341,955 |
|
|
|
335,122 |
|
|
|
371,409 |
|
Debt securities held-to-maturity, at amortized cost |
|
388,968 |
|
|
|
391,301 |
|
|
|
404,765 |
|
Equity securities |
|
9,301 |
|
|
|
8,948 |
|
|
|
9,615 |
|
Loans held for sale |
|
675 |
|
|
|
464 |
|
|
|
251 |
|
Loans receivable |
|
|
|
|
|
PPP loans, net of deferred processing fees |
|
48 |
|
|
|
56 |
|
|
|
159 |
|
Syndicated loans |
|
108,710 |
|
|
|
123,090 |
|
|
|
156,649 |
|
Loans |
|
4,359,718 |
|
|
|
4,369,028 |
|
|
|
4,118,370 |
|
Total loans receivable |
|
4,468,476 |
|
|
|
4,492,174 |
|
|
|
4,275,178 |
|
Less: allowance for credit losses |
|
(45,832 |
) |
|
|
(45,832 |
) |
|
|
(43,436 |
) |
Net loans receivable |
|
4,422,644 |
|
|
|
4,446,342 |
|
|
|
4,231,742 |
|
Goodwill and other intangibles |
|
43,874 |
|
|
|
43,874 |
|
|
|
43,749 |
|
Core deposit intangible |
|
280 |
|
|
|
299 |
|
|
|
364 |
|
Other assets |
|
323,214 |
|
|
|
322,973 |
|
|
|
306,999 |
|
Total Assets |
$ |
5,752,957 |
|
|
$ |
5,731,908 |
|
|
$ |
5,475,179 |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
728,881 |
|
|
$ |
782,996 |
|
|
$ |
898,437 |
|
Interest-bearing demand deposits |
|
803,093 |
|
|
|
781,309 |
|
|
|
1,007,202 |
|
Savings |
|
2,960,282 |
|
|
|
2,883,736 |
|
|
|
2,270,337 |
|
Certificates of deposit |
|
506,494 |
|
|
|
554,740 |
|
|
|
446,461 |
|
Total deposits |
|
4,998,750 |
|
|
|
5,002,781 |
|
|
|
4,622,437 |
|
Short-term borrowings |
|
0 |
|
|
|
0 |
|
|
|
132,396 |
|
Subordinated debentures |
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
Subordinated notes, net of issuance costs |
|
84,267 |
|
|
|
84,191 |
|
|
|
83,964 |
|
Other liabilities |
|
78,073 |
|
|
|
75,104 |
|
|
|
85,000 |
|
Total liabilities |
|
5,181,710 |
|
|
|
5,182,696 |
|
|
|
4,944,417 |
|
Common stock |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Preferred stock |
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Additional paid in capital |
|
220,495 |
|
|
|
220,100 |
|
|
|
221,553 |
|
Retained earnings |
|
345,935 |
|
|
|
336,690 |
|
|
|
306,911 |
|
Treasury stock |
|
(6,890 |
) |
|
|
(6,862 |
) |
|
|
(2,967 |
) |
Accumulated other comprehensive loss |
|
(46,078 |
) |
|
|
(58,501 |
) |
|
|
(52,520 |
) |
Total shareholders' equity |
|
571,247 |
|
|
|
549,212 |
|
|
|
530,762 |
|
Total liabilities and shareholders' equity |
$ |
5,752,957 |
|
|
$ |
5,731,908 |
|
|
$ |
5,475,179 |
|
|
|
|
|
|
|
Book value per common share |
$ |
24.57 |
|
|
$ |
23.52 |
|
|
$ |
22.39 |
|
Tangible book value per common share (non-GAAP) (1) |
$ |
22.46 |
|
|
$ |
21.40 |
|
|
$ |
20.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
Capital Ratios |
|
|
|
|
|
Tangible common equity / tangible assets (non-GAAP)(1) |
|
8.22 |
% |
|
|
7.86 |
% |
|
|
7.90 |
% |
Tier 1 leverage ratio(2) |
|
10.54 |
% |
|
|
10.50 |
% |
|
|
10.80 |
% |
Common equity tier 1 ratio(2) |
|
11.49 |
% |
|
|
11.21 |
% |
|
|
11.42 |
% |
Tier 1 risk-based ratio(2) |
|
13.20 |
% |
|
|
12.92 |
% |
|
|
13.24 |
% |
Total risk-based ratio(2) |
|
15.99 |
% |
|
|
15.68 |
% |
|
|
16.08 |
% |
|
|
|
|
|
|
Asset Quality Detail |
|
|
|
|
|
Nonaccrual loans |
$ |
29,639 |
|
|
$ |
27,065 |
|
|
$ |
20,986 |
|
Loans 90+ days past due and accruing |
|
55 |
|
|
|
231 |
|
|
|
1,121 |
|
Total nonperforming loans |
|
29,694 |
|
|
|
27,296 |
|
|
|
22,107 |
|
Other real estate owned |
|
2,111 |
|
|
|
2,039 |
|
|
|
1,439 |
|
Total nonperforming assets |
$ |
31,805 |
|
|
$ |
29,335 |
|
|
$ |
23,546 |
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
Nonperforming assets / Total loans + OREO |
|
0.71 |
% |
|
|
0.65 |
% |
|
|
0.55 |
% |
Nonperforming assets / Total assets |
|
0.55 |
% |
|
|
0.51 |
% |
|
|
0.43 |
% |
Ratio of allowance for credit losses on loans to nonaccrual
loans |
|
154.63 |
% |
|
|
169.34 |
% |
|
|
206.98 |
% |
Allowance for credit losses / Total loans |
|
1.03 |
% |
|
|
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 December 31, 2023 are estimated pending
final regulatory filings. |
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
Average Balances, Income and Interest Rates on a Taxable Equivalent
Basis |
|
Three Months Ended, |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable(1) (4) |
$ |
694,369 |
|
|
1.89 |
% |
|
$ |
3,626 |
|
$ |
711,299 |
|
|
1.89 |
% |
|
$ |
3,674 |
|
$ |
744,979 |
|
|
1.86 |
% |
|
$ |
3,786 |
Tax-exempt(1) (2) (4) |
|
27,590 |
|
|
2.55 |
% |
|
|
198 |
|
|
29,455 |
|
|
2.55 |
% |
|
|
204 |
|
|
32,884 |
|
|
2.74 |
% |
|
|
250 |
Equity securities(1) (2) |
|
8,091 |
|
|
5.54 |
% |
|
|
113 |
|
|
8,598 |
|
|
5.58 |
% |
|
|
121 |
|
|
9,396 |
|
|
2.24 |
% |
|
|
53 |
Total securities(4) |
|
730,050 |
|
|
1.96 |
% |
|
|
3,937 |
|
|
749,352 |
|
|
1.96 |
% |
|
|
3,999 |
|
|
787,259 |
|
|
1.90 |
% |
|
|
4,089 |
Loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial(2) (3) |
|
1,467,452 |
|
|
7.07 |
% |
|
|
26,165 |
|
|
1,516,942 |
|
|
6.72 |
% |
|
|
25,693 |
|
|
1,489,416 |
|
|
5.76 |
% |
|
|
21,641 |
Mortgage and loans held for sale(2) (3) |
|
2,860,619 |
|
|
5.99 |
% |
|
|
43,166 |
|
|
2,834,576 |
|
|
5.83 |
% |
|
|
41,618 |
|
|
2,515,400 |
|
|
5.22 |
% |
|
|
33,112 |
Consumer(3) |
|
135,573 |
|
|
11.38 |
% |
|
|
3,890 |
|
|
133,499 |
|
|
11.51 |
% |
|
|
3,874 |
|
|
119,041 |
|
|
10.93 |
% |
|
|
3,280 |
Total loans receivable(3) |
|
4,463,644 |
|
|
6.51 |
% |
|
|
73,221 |
|
|
4,485,017 |
|
|
6.30 |
% |
|
|
71,185 |
|
|
4,123,857 |
|
|
5.58 |
% |
|
|
58,033 |
Interest-bearing deposits with the Federal Reserve and other
financial institutions |
|
150,123 |
|
|
6.06 |
% |
|
|
2,292 |
|
|
39,389 |
|
|
5.78 |
% |
|
|
574 |
|
|
48,374 |
|
|
4.96 |
% |
|
|
605 |
Total earning assets |
|
5,343,817 |
|
|
5.82 |
% |
|
$ |
79,450 |
|
|
5,273,758 |
|
|
5.63 |
% |
|
$ |
75,758 |
|
|
4,959,490 |
|
|
4.95 |
% |
|
$ |
62,727 |
Noninterest-bearing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
55,815 |
|
|
|
|
|
|
|
55,502 |
|
|
|
|
|
|
|
54,791 |
|
|
|
|
|
Premises and equipment |
|
109,469 |
|
|
|
|
|
|
|
109,854 |
|
|
|
|
|
|
|
96,804 |
|
|
|
|
|
Other assets |
|
256,253 |
|
|
|
|
|
|
|
254,106 |
|
|
|
|
|
|
|
242,585 |
|
|
|
|
|
Allowance for credit losses |
|
(46,041 |
) |
|
|
|
|
|
|
(45,729 |
) |
|
|
|
|
|
|
(41,880 |
) |
|
|
|
|
Total non interest-bearing assets |
|
375,496 |
|
|
|
|
|
|
|
373,733 |
|
|
|
|
|
|
|
352,300 |
|
|
|
|
|
TOTAL ASSETS |
$ |
5,719,313 |
|
|
|
|
|
|
$ |
5,647,491 |
|
|
|
|
|
|
$ |
5,311,790 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand—interest-bearing |
$ |
778,488 |
|
|
0.55 |
% |
|
$ |
1,081 |
|
$ |
813,264 |
|
|
0.52 |
% |
|
$ |
1,061 |
|
$ |
1,002,822 |
|
|
0.25 |
% |
|
$ |
643 |
Savings |
|
2,920,026 |
|
|
3.36 |
% |
|
|
24,712 |
|
|
2,788,499 |
|
|
3.13 |
% |
|
|
22,004 |
|
|
2,293,534 |
|
|
1.33 |
% |
|
|
7,681 |
Time |
|
519,257 |
|
|
3.50 |
% |
|
|
4,587 |
|
|
507,597 |
|
|
3.16 |
% |
|
|
4,048 |
|
|
417,684 |
|
|
1.81 |
% |
|
|
1,908 |
Total interest-bearing deposits |
|
4,217,771 |
|
|
2.86 |
% |
|
|
30,380 |
|
|
4,109,360 |
|
|
2.62 |
% |
|
|
27,113 |
|
|
3,714,040 |
|
|
1.09 |
% |
|
|
10,232 |
Short-term borrowings |
|
0 |
|
|
0.00 |
% |
|
|
0 |
|
|
6,101 |
|
|
5.66 |
% |
|
|
87 |
|
|
34,865 |
|
|
4.25 |
% |
|
|
369 |
Finance lease liabilities |
|
305 |
|
|
3.90 |
% |
|
|
3 |
|
|
328 |
|
|
4.84 |
% |
|
|
4 |
|
|
394 |
|
|
5.03 |
% |
|
|
5 |
Subordinated notes and debentures |
|
104,849 |
|
|
4.28 |
% |
|
|
1,131 |
|
|
104,773 |
|
|
4.07 |
% |
|
|
1,076 |
|
|
104,546 |
|
|
3.82 |
% |
|
|
1,006 |
Total interest-bearing liabilities |
|
4,322,925 |
|
|
2.89 |
% |
|
$ |
31,514 |
|
|
4,220,562 |
|
|
2.66 |
% |
|
$ |
28,280 |
|
|
3,853,845 |
|
|
1.20 |
% |
|
$ |
11,612 |
Demand—noninterest-bearing |
|
759,781 |
|
|
|
|
|
|
|
792,193 |
|
|
|
|
|
|
|
874,131 |
|
|
|
|
|
Other liabilities |
|
80,362 |
|
|
|
|
|
|
|
79,272 |
|
|
|
|
|
|
|
77,822 |
|
|
|
|
|
Total Liabilities |
|
5,163,068 |
|
|
|
|
|
|
|
5,092,027 |
|
|
|
|
|
|
|
4,805,798 |
|
|
|
|
|
Shareholders’ equity |
|
556,245 |
|
|
|
|
|
|
|
555,464 |
|
|
|
|
|
|
|
505,992 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
5,719,313 |
|
|
|
|
|
|
$ |
5,647,491 |
|
|
|
|
|
|
$ |
5,311,790 |
|
|
|
|
|
Interest income/Earning assets |
|
|
5.82 |
% |
|
$ |
79,450 |
|
|
|
5.63 |
% |
|
$ |
75,758 |
|
|
|
4.95 |
% |
|
$ |
62,727 |
Interest expense/Interest-bearing liabilities |
|
|
2.89 |
% |
|
|
31,514 |
|
|
|
2.66 |
% |
|
|
28,280 |
|
|
|
1.20 |
% |
|
|
11,612 |
Net interest spread |
|
|
2.93 |
% |
|
$ |
47,936 |
|
|
|
2.97 |
% |
|
$ |
47,478 |
|
|
|
3.75 |
% |
|
$ |
51,115 |
Interest income/Earning assets |
|
|
5.82 |
% |
|
|
79,450 |
|
|
|
5.63 |
% |
|
|
75,758 |
|
|
|
4.95 |
% |
|
|
62,727 |
Interest expense/Earning assets |
|
|
2.31 |
% |
|
|
31,514 |
|
|
|
2.10 |
% |
|
|
28,280 |
|
|
|
0.92 |
% |
|
|
11,612 |
Net interest margin (fully tax-equivalent) |
|
|
3.51 |
% |
|
$ |
47,936 |
|
|
|
3.53 |
% |
|
$ |
47,478 |
|
|
|
4.03 |
% |
|
$ |
51,115 |
(1)Includes unamortized discounts and premiums. |
(2)Average yields are stated on a fully taxable equivalent basis
(calculated using statutory rates of 21%) resulting from tax-free
municipal securities in the investment portfolio and tax-free
municipal loans in the commercial loan portfolio. The taxable
equivalent adjustment to net interest income for the three months
ended December 31, 2023, September 30, 2023 and December 31, 2022
was $242 thousand, $242 thousand and $282 thousand,
respectively. |
(3)Average loans receivable outstanding includes the average
balance outstanding of all nonaccrual loans. Loans receivable
consist of the average of total loans receivable less average
unearned income. In addition, loans receivable interest income
consists of loans receivable fees, including PPP deferred
processing fees. |
(4)Average balance is computed using the fair value of AFS
securities and amortized cost of HTM securities. Average yield has
been computed using amortized cost average balance for AFS and HTM
securities. The adjustment to the average balance for securities in
the calculation of average yield for the three months ended
December 31, 2023, September 30, 2023 and December 31, 2022 was
$(68.5) million, $(61.1) million and $(66.8) million,
respectively. |
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
Average Balances, Income and Interest Rates on a Taxable Equivalent
Basis |
|
Twelve Months Ended, |
|
December 31, 2023 |
|
December 31, 2022 |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable(1) (4) |
$ |
720,818 |
|
|
1.89 |
% |
|
$ |
14,766 |
|
$ |
768,959 |
|
|
1.80 |
% |
|
$ |
14,560 |
Tax-exempt(1) (2) (4) |
|
30,153 |
|
|
2.59 |
% |
|
|
844 |
|
|
35,965 |
|
|
2.87 |
% |
|
|
1,080 |
Equity securities(1) (2) |
|
10,005 |
|
|
5.09 |
% |
|
|
509 |
|
|
8,248 |
|
|
2.13 |
% |
|
|
176 |
Total securities(4) |
|
760,976 |
|
|
1.96 |
% |
|
|
16,119 |
|
|
813,172 |
|
|
1.85 |
% |
|
|
15,816 |
Loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
Commercial(2) (3) |
|
1,501,202 |
|
|
6.63 |
% |
|
|
99,587 |
|
|
1,429,634 |
|
|
5.08 |
% |
|
|
72,684 |
Mortgage and loans held for sale(2) (3) |
|
2,765,484 |
|
|
5.77 |
% |
|
|
159,606 |
|
|
2,355,662 |
|
|
4.78 |
% |
|
|
112,583 |
Consumer(3) |
|
129,655 |
|
|
11.47 |
% |
|
|
14,868 |
|
|
112,426 |
|
|
10.48 |
% |
|
|
11,778 |
Total loans receivable(3) |
|
4,396,341 |
|
|
6.23 |
% |
|
|
274,061 |
|
|
3,897,722 |
|
|
5.06 |
% |
|
|
197,045 |
Interest-bearing deposits with the Federal Reserve and other
financial institutions |
|
74,800 |
|
|
6.03 |
% |
|
|
4,513 |
|
|
243,653 |
|
|
1.16 |
% |
|
|
2,112 |
Total earning assets |
|
5,232,117 |
|
|
5.57 |
% |
|
$ |
294,693 |
|
|
4,954,547 |
|
|
4.30 |
% |
|
$ |
214,973 |
Noninterest-bearing assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
54,824 |
|
|
|
|
|
|
|
51,670 |
|
|
|
|
|
Premises and equipment |
|
107,635 |
|
|
|
|
|
|
|
89,940 |
|
|
|
|
|
Other assets |
|
251,725 |
|
|
|
|
|
|
|
227,991 |
|
|
|
|
|
Allowance for credit losses |
|
(44,930 |
) |
|
|
|
|
|
|
(39,935 |
) |
|
|
|
|
Total non interest-bearing assets |
|
369,254 |
|
|
|
|
|
|
|
329,666 |
|
|
|
|
|
TOTAL ASSETS |
$ |
5,601,371 |
|
|
|
|
|
|
$ |
5,284,213 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
Demand—interest-bearing |
$ |
853,632 |
|
|
0.54 |
% |
|
$ |
4,626 |
|
$ |
1,061,452 |
|
|
0.20 |
% |
|
$ |
2,131 |
Savings |
|
2,666,905 |
|
|
2.92 |
% |
|
|
77,782 |
|
|
2,383,918 |
|
|
0.54 |
% |
|
|
12,772 |
Time |
|
517,017 |
|
|
2.97 |
% |
|
|
15,362 |
|
|
351,272 |
|
|
1.40 |
% |
|
|
4,930 |
Total interest-bearing deposits |
|
4,037,554 |
|
|
2.42 |
% |
|
|
97,770 |
|
|
3,796,642 |
|
|
0.52 |
% |
|
|
19,833 |
Short-term borrowings |
|
35,224 |
|
|
5.07 |
% |
|
|
1,787 |
|
|
8,793 |
|
|
4.20 |
% |
|
|
369 |
Finance lease liabilities |
|
339 |
|
|
4.42 |
% |
|
|
15 |
|
|
426 |
|
|
4.69 |
% |
|
|
20 |
Subordinated notes and debentures |
|
104,735 |
|
|
4.10 |
% |
|
|
4,295 |
|
|
104,432 |
|
|
3.69 |
% |
|
|
3,857 |
Total interest-bearing liabilities |
|
4,177,852 |
|
|
2.49 |
% |
|
$ |
103,867 |
|
|
3,910,293 |
|
|
0.62 |
% |
|
$ |
24,079 |
Demand—noninterest-bearing |
|
793,713 |
|
|
|
|
|
|
|
847,793 |
|
|
|
|
|
Other liabilities |
|
79,473 |
|
|
|
|
|
|
|
70,379 |
|
|
|
|
|
Total Liabilities |
|
5,051,038 |
|
|
|
|
|
|
|
4,828,465 |
|
|
|
|
|
Shareholders’ equity |
|
550,333 |
|
|
|
|
|
|
|
455,748 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
5,601,371 |
|
|
|
|
|
|
$ |
5,284,213 |
|
|
|
|
|
Interest income/Earning assets |
|
|
5.57 |
% |
|
$ |
294,693 |
|
|
|
4.30 |
% |
|
$ |
214,973 |
Interest expense/Interest-bearing liabilities |
|
|
2.49 |
% |
|
|
103,867 |
|
|
|
0.62 |
% |
|
|
24,079 |
Net interest spread |
|
|
3.08 |
% |
|
$ |
190,826 |
|
|
|
3.68 |
% |
|
$ |
190,894 |
Interest income/Earning assets |
|
|
5.57 |
% |
|
|
294,693 |
|
|
|
4.30 |
% |
|
|
214,973 |
Interest expense/Earning assets |
|
|
1.96 |
% |
|
|
103,867 |
|
|
|
0.48 |
% |
|
|
24,079 |
Net interest margin (fully tax-equivalent) |
|
|
3.61 |
% |
|
$ |
190,826 |
|
|
|
3.82 |
% |
|
$ |
190,894 |
(1) Includes unamortized discounts and premiums. |
(2) Average yields are stated on a fully taxable equivalent basis
(calculated using statutory rates of 21%) resulting from tax-free
municipal securities in the investment portfolio and tax-free
municipal loans in the commercial loan portfolio. The taxable
equivalent adjustment to net interest income for the twelve months
ended December 31, 2023 and 2022 was $997 thousand and $1.2
million, respectively. |
(3) Average loans receivable outstanding includes the average
balance outstanding of all nonaccrual loans. Loans receivable
consist of the average of total loans receivable less average
unearned income. In addition, loans receivable interest income
consists of loans receivable fees, including PPP deferred
processing fees |
(4) Average balance is computed using the fair value of AFS
securities and amortized cost of HTM securities. Average yield has
been computed using amortized cost average balance for AFS and HTM
securities. The adjustment to the average balance for securities in
the calculation of average yield for the twelve months ended
December 31, 2023 and 2022 was $(61.1) million and $(40.3) million,
respectively. |
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
Reconciliation of Non-GAAP Financial
Measures
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
Calculation of tangible book value per common share and
tangible common equity / tangible assets (non-GAAP): |
|
|
|
|
|
Shareholders' equity |
$ |
571,247 |
|
|
$ |
549,212 |
|
|
$ |
530,762 |
|
Less: preferred equity |
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Common shareholders' equity |
|
513,462 |
|
|
|
491,427 |
|
|
|
472,977 |
|
Less: goodwill and other intangibles |
|
43,874 |
|
|
|
43,874 |
|
|
|
43,749 |
|
Less: core deposit intangible |
|
280 |
|
|
|
299 |
|
|
|
364 |
|
Tangible common equity (non-GAAP) |
$ |
469,308 |
|
|
$ |
447,254 |
|
|
$ |
428,864 |
|
|
|
|
|
|
|
Total assets |
$ |
5,752,957 |
|
|
$ |
5,731,908 |
|
|
$ |
5,475,179 |
|
Less: goodwill and other intangibles |
|
43,874 |
|
|
|
43,874 |
|
|
|
43,749 |
|
Less: core deposit intangible |
|
280 |
|
|
|
299 |
|
|
|
364 |
|
Tangible assets (non-GAAP) |
$ |
5,708,803 |
|
|
$ |
5,687,735 |
|
|
$ |
5,431,066 |
|
|
|
|
|
|
|
Ending shares outstanding |
|
20,896,439 |
|
|
|
20,895,634 |
|
|
|
21,121,346 |
|
|
|
|
|
|
|
Book value per common share (GAAP) |
$ |
24.57 |
|
|
$ |
23.52 |
|
|
$ |
22.39 |
|
Tangible book value per common share (non-GAAP) |
$ |
22.46 |
|
|
$ |
21.40 |
|
|
$ |
20.30 |
|
|
|
|
|
|
|
Common shareholders' equity / Total assets (GAAP) |
|
8.93 |
% |
|
|
8.57 |
% |
|
|
8.64 |
% |
Tangible common equity / Tangible assets (non-GAAP) |
|
8.22 |
% |
|
|
7.86 |
% |
|
|
7.90 |
% |
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
Reconciliation of Non-GAAP Financial
Measures
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Calculation of net interest margin: |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
79,208 |
|
|
$ |
75,516 |
|
|
$ |
62,445 |
|
|
$ |
293,696 |
|
|
$ |
213,738 |
|
Interest expense |
|
31,514 |
|
|
|
28,280 |
|
|
|
11,612 |
|
|
|
103,867 |
|
|
|
24,079 |
|
Net interest income |
$ |
47,694 |
|
|
$ |
47,236 |
|
|
$ |
50,833 |
|
|
$ |
189,829 |
|
|
$ |
189,659 |
|
|
|
|
|
|
|
|
|
|
|
Average total earning assets |
$ |
5,343,817 |
|
|
$ |
5,273,758 |
|
|
$ |
4,959,490 |
|
|
$ |
5,232,117 |
|
|
$ |
4,954,547 |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (GAAP) (annualized) |
|
3.54 |
% |
|
|
3.55 |
% |
|
|
4.07 |
% |
|
|
3.63 |
% |
|
|
3.83 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of net interest margin (fully tax equivalent
basis) (non-GAAP): |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
79,208 |
|
|
$ |
75,516 |
|
|
$ |
62,445 |
|
|
$ |
293,696 |
|
|
$ |
213,738 |
|
Tax equivalent adjustment (non-GAAP) |
|
242 |
|
|
|
242 |
|
|
|
282 |
|
|
|
997 |
|
|
|
1,235 |
|
Adjusted interest income (fully tax equivalent basis)
(non-GAAP) |
|
79,450 |
|
|
|
75,758 |
|
|
|
62,727 |
|
|
|
294,693 |
|
|
|
214,973 |
|
Interest expense |
|
31,514 |
|
|
|
28,280 |
|
|
|
11,612 |
|
|
|
103,867 |
|
|
|
24,079 |
|
Net interest income (fully tax equivalent basis) (non-GAAP) |
$ |
47,936 |
|
|
$ |
47,478 |
|
|
$ |
51,115 |
|
|
$ |
190,826 |
|
|
$ |
190,894 |
|
|
|
|
|
|
|
|
|
|
|
Average total earning assets |
$ |
5,343,817 |
|
|
$ |
5,273,758 |
|
|
$ |
4,959,490 |
|
|
$ |
5,232,117 |
|
|
$ |
4,954,547 |
|
Less: average mark to market adjustment on investments
(non-GAAP) |
|
(68,546 |
) |
|
|
(61,103 |
) |
|
|
(66,781 |
) |
|
|
(61,089 |
) |
|
|
(40,271 |
) |
Adjusted average total earning assets, net of mark to market
(non-GAAP) |
$ |
5,412,363 |
|
|
$ |
5,334,861 |
|
|
$ |
5,026,271 |
|
|
$ |
5,293,206 |
|
|
$ |
4,994,818 |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin, fully tax equivalent basis (non-GAAP)
(annualized) |
|
3.51 |
% |
|
|
3.53 |
% |
|
|
4.03 |
% |
|
|
3.61 |
% |
|
|
3.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
Reconciliation of Non-GAAP Financial
Measures
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Calculation of PPNR (non-GAAP):
(1) |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
47,694 |
|
$ |
47,236 |
|
$ |
50,833 |
|
$ |
189,829 |
|
$ |
189,659 |
Add: Non-interest income |
|
9,137 |
|
|
7,863 |
|
|
9,007 |
|
|
33,335 |
|
|
34,766 |
Less: Non-interest expense |
|
38,450 |
|
|
36,914 |
|
|
37,021 |
|
|
145,342 |
|
|
137,622 |
PPNR (non-GAAP) |
$ |
18,381 |
|
$ |
18,185 |
|
$ |
22,819 |
|
$ |
77,822 |
|
$ |
86,803 |
|
|
|
|
|
|
|
|
|
|
(1) Management believes that this is an important metric as it
illustrates the underlying performance of the Corporation, it
enables investors and others to assess the Corporation's ability to
generate capital to cover credit losses through the credit cycle
and provides consistent reporting with a key metric used by bank
regulatory agencies. |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Calculation of efficiency ratio: |
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
38,450 |
|
|
$ |
36,914 |
|
|
$ |
37,021 |
|
|
$ |
145,342 |
|
|
$ |
137,622 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
$ |
9,137 |
|
|
$ |
7,863 |
|
|
$ |
9,007 |
|
|
$ |
33,335 |
|
|
$ |
34,766 |
|
Net interest income |
|
47,694 |
|
|
|
47,236 |
|
|
|
50,833 |
|
|
|
189,829 |
|
|
|
189,659 |
|
Total revenue |
$ |
56,831 |
|
|
$ |
55,099 |
|
|
$ |
59,840 |
|
|
$ |
223,164 |
|
|
$ |
224,425 |
|
Efficiency ratio |
|
67.66 |
% |
|
|
67.00 |
% |
|
|
61.87 |
% |
|
|
65.13 |
% |
|
|
61.32 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of efficiency ratio (fully tax equivalent
basis) (non-GAAP): |
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
38,450 |
|
|
$ |
36,914 |
|
|
$ |
37,021 |
|
|
$ |
145,342 |
|
|
$ |
137,622 |
|
Less: core deposit intangible amortization |
|
19 |
|
|
|
20 |
|
|
|
23 |
|
|
|
84 |
|
|
|
96 |
|
Adjusted non-interest expense (non-GAAP) |
$ |
38,431 |
|
|
$ |
36,894 |
|
|
$ |
36,998 |
|
|
$ |
145,258 |
|
|
$ |
137,526 |
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
$ |
9,137 |
|
|
$ |
7,863 |
|
|
$ |
9,007 |
|
|
$ |
33,335 |
|
|
$ |
34,766 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
47,694 |
|
|
$ |
47,236 |
|
|
$ |
50,833 |
|
|
$ |
189,829 |
|
|
$ |
189,659 |
|
Less: tax exempt investment and loan income, net of TEFRA
(non-GAAP) |
|
1,383 |
|
|
|
1,376 |
|
|
|
1,244 |
|
|
|
5,425 |
|
|
|
5,011 |
|
Add: tax exempt investment and loan income (fully tax equivalent
basis) (non-GAAP) |
|
1,968 |
|
|
|
1,955 |
|
|
|
1,658 |
|
|
|
7,635 |
|
|
|
6,509 |
|
Adjusted net interest income (fully tax equivalent basis)
(non-GAAP) |
|
48,279 |
|
|
|
47,815 |
|
|
|
51,247 |
|
|
|
192,039 |
|
|
|
191,157 |
|
Adjusted net revenue (fully tax equivalent basis) (non-GAAP) |
$ |
57,416 |
|
|
$ |
55,678 |
|
|
$ |
60,254 |
|
|
$ |
225,374 |
|
|
$ |
225,923 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (fully tax equivalent basis) (non-GAAP) |
|
66.93 |
% |
|
|
66.26 |
% |
|
|
61.40 |
% |
|
|
64.45 |
% |
|
|
60.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
Reconciliation of Non-GAAP Financial
Measures
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Calculation of return on average tangible common equity
(non-GAAP): |
|
|
|
|
|
|
|
|
|
Net income |
$ |
13,977 |
|
|
$ |
13,727 |
|
|
$ |
15,880 |
|
|
$ |
58,020 |
|
|
$ |
63,188 |
|
Less: preferred stock dividends |
|
1,076 |
|
|
|
1,076 |
|
|
|
1,076 |
|
|
|
4,302 |
|
|
|
4,302 |
|
Net income available to common shareholders |
$ |
12,901 |
|
|
$ |
12,651 |
|
|
$ |
14,804 |
|
|
$ |
53,718 |
|
|
$ |
58,886 |
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity |
$ |
556,245 |
|
|
$ |
555,464 |
|
|
$ |
505,992 |
|
|
$ |
550,333 |
|
|
$ |
455,748 |
|
Less: average goodwill & intangibles |
|
44,166 |
|
|
|
44,186 |
|
|
|
44,128 |
|
|
|
44,193 |
|
|
|
44,163 |
|
Less: average preferred equity |
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Tangible common shareholders' equity (non-GAAP) |
$ |
454,294 |
|
|
$ |
453,493 |
|
|
$ |
404,079 |
|
|
$ |
448,355 |
|
|
$ |
353,800 |
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (GAAP) (annualized) |
|
9.97 |
% |
|
|
9.80 |
% |
|
|
12.45 |
% |
|
|
10.54 |
% |
|
|
13.86 |
% |
Return on average common equity (GAAP) (annualized) |
|
9.20 |
% |
|
|
9.04 |
% |
|
|
11.61 |
% |
|
|
9.76 |
% |
|
|
12.92 |
% |
Return on average tangible common equity (non-GAAP)
(annualized) |
|
11.27 |
% |
|
|
11.07 |
% |
|
|
14.54 |
% |
|
|
11.98 |
% |
|
|
16.64 |
% |
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
Calculation of non-interest income excluding net realized
gains on available-for-sale securities (non-GAAP): |
|
|
|
|
|
|
|
|
|
Non-interest income |
$ |
9,137 |
|
$ |
7,863 |
|
$ |
9,007 |
|
$ |
33,335 |
|
$ |
34,766 |
Less: net realized gains on available-for-sale securities |
|
0 |
|
|
0 |
|
|
0 |
|
|
52 |
|
|
651 |
Adjusted non-interest income (non-GAAP) |
$ |
9,137 |
|
$ |
7,863 |
|
$ |
9,007 |
|
$ |
33,283 |
|
$ |
34,115 |
Contact: Tito L. Lima
Treasurer
(814) 765-9621
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