CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ:
CCNE), the parent company of CNB Bank, today announced its earnings
for the three and six months ended June 30, 2023, and disclosed
quarterly growth in total deposits, loans, and assets.
Executive Summary
- Net income available to common
shareholders ("earnings") was $12.8 million, or $0.61 per diluted
share, for the three months ended June 30, 2023, compared to
earnings of $15.4 million, or $0.73 per diluted share, for the
three months ended March 31, 2023. The Corporation’s prior year
earnings for the three months ended June 30, 2022 were $14.4
million, or $0.85 per diluted share. The decrease in diluted
earnings per share comparing the quarter ended June 30, 2023 to the
quarter ended March 31, 2023 was primarily due to an increase in
the Corporation's interest-bearing deposit costs as CNB raised
targeted rates to sustain its core deposit base in legacy markets
and to grow its funding base in expansion markets given the
competitive deposit market as a result of continued Federal Open
Market Committee ("Fed") rate increases. The decrease in diluted
earnings per share comparing the quarter ended June 30, 2023 to the
quarter ended June 30, 2022 was primarily due to the year-over-year
increase in deposit costs, as well as the dilutive effect of the
Corporation's common stock offering completed in September 2022,
resulting in the issuance of 4,257,446 shares of common stock at
$23.50 per share and net proceeds of $94.1 million after deducting
the underwriting discount and customary offering expenses.
- Earnings were $28.2 million, or
$1.33 per diluted share, for the six months ended June 30, 2023,
compared to earnings of $28.5 million, or $1.69 per diluted share,
for the six months ended June 30, 2022. As previously noted, the
decrease in diluted earnings per share comparing the six months
ended June 30, 2023 to the six months ended June 30, 2022 was
primarily due to both the rise in deposit costs year over year and
to the dilutive effect of the Corporation's common stock
offering.
- At June 30, 2023, total deposits
were $4.9 billion, reflecting an increase of $178.9 million, or
3.8% (15.1% annualized), from March 31, 2023. The increase in
deposit balances was primarily the result of 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. In addition, the total number of deposit households
increased by approximately 0.1% (0.5% annualized) from March 31,
2023. Additional deposit and liquidity profile details were as
follows:
- At June 30, 2023, the total
estimated uninsured deposits for CNB Bank were approximately $1.5
billion, or approximately 30.4% of total CNB Bank deposits;
however, when excluding $99.0 million of affiliate company deposits
and $448.7 million of pledged-investment collateralized deposits,
the adjusted amount and percentage of total estimated uninsured
deposits was approximately $984.4 million, or approximately 19.6%
of total CNB Bank deposits as of June 30, 2023.
- At March 31, 2023, the total
estimated uninsured deposits for CNB Bank were approximately $1.6
billion, or approximately 33.3% of total CNB Bank deposits. When
excluding affiliate company deposits of $101.1 million and
pledged-investment collateralized deposits of $462.2 million, the
adjusted amount and percentage of total estimated uninsured
deposits was approximately $1.1 billion, or approximately 21.7% of
total CNB Bank deposits as of March 31, 2023.
- At June 30, 2023, the average
deposit balance per account for CNB Bank was approximately $33
thousand. In addition to Treasury Management customers, CNB Bank
continues to increase small business and retail customer household
deposits including those added from the second quarter launch of
the Impressia Bank division, as well as those U.S. Service member
and Veteran families enrolling in CNB Bank’s “At Ease”
account.
- At June 30, 2023, the Corporation
had $62.6 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 $2.3 billion from the Federal Home Bank of
Pittsburgh ("FHLB") and 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, the total on-hand and contingent
liquidity sources for the Corporation represented 2.4 times the
estimated amount of adjusted uninsured deposit balances as
discussed above.
- At June 30, 2023, the Corporation
had no short-term borrowings from the FHLB, compared to borrowings
of $102.1 million at March 31, 2023. The decrease in these more
costly wholesale short-term borrowings resulted primarily from (i)
a $18.6 million reduction in investment balances as a result of the
proceeds of investment principal payments being used to reduce
borrowings, (ii) excess funds from the second quarter growth in
deposits outpacing the growth in loan balances for the same period,
and (iii) a portion of the Corporation’s excess cash at the Federal
Reserve being used to reduce borrowings.
- As of June 30, 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 the Corporation has not borrowed from the BTFP to date, due to
the stability and growth in CNB's deposit funding base.
- At June 30, 2023, the Corporation's
net unrealized losses on available-for-sale and held-to-maturity
securities totaled approximately $94.8 million, or 17.3% of total
shareholders' equity, compared to $84.9 million, or 15.5% of total
shareholders' equity at March 31, 2023. The change in unrealized
losses was primarily due to higher interest rates along much of the
yield curve relative to Corporation’s scheduled maturities.
Importantly, all regulatory capital ratios for the Corporation
would exceed regulatory “well-capitalized” levels as of both June
30, 2023 and March 31, 2023 if the net unrealized losses at the
respective dates were fully recognized. Additionally, the
Corporation maintains $98.3 million of liquid funds at its holding
company, which is in excess of the $94.8 million in the unrealized
losses on investments, as an immediately available source of
contingent capital to be down-streamed to CNB Bank if
necessary.
- At June 30, 2023, loans totaled
$4.3 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 $4.3 billion in loans
represented an increase of $166.1 million, or 4.0% (16.0%
annualized), from the same adjusted total loans measured as of
March 31, 2023. Loan growth was experienced primarily in the
Corporation's recent expansion markets of Cleveland, Roanoke, and
Buffalo combined with growth in the portfolio related to CNB Bank’s
Private Banking division.
- At June 30, 2023, the Corporation's
balance sheet reflected a decrease in syndicated lending balances
of $2.5 million compared to March 31, 2023. The syndicated loan
portfolio totaled $145.6 million, or 3.3% of total loans, excluding
PPP-related loans, at June 30, 2023, compared to $148.1 million, or
3.4% of total loans, excluding PPP-related loans, at March 31,
2023.
- Total nonperforming assets were
approximately $24.1 million, or 0.43% of total assets, as of June
30, 2023, compared to $23.7 million, or 0.42% of total assets, as
of March 31, 2023, and $20.7 million, or 0.39% of total assets, as
of June 30, 2022. For the three months ended June 30, 2023, net
loan charge-offs were $789 thousand, or 0.07% (annualized) of
average total loans and loans held for sale, compared to $686
thousand, or 0.07% (annualized) of average total loans and loans
held for sale, during the three months ended March 31, 2023, and
$479 thousand, or 0.05% (annualized) of average total loans and
loans held for sale, during the three months ended June 30,
2022.
- Pre-provision net revenue ("PPNR"),
a non-GAAP measure, was $19.6 million for the three months ended
June 30, 2023, compared to $21.7 million and $21.8 million for the
three months ended March 31, 2023 and June 30, 2022, respectively.1
The decrease in PPNR for the three months ended June 30, 2023
compared to the three months ended March 31, 2023 was driven
primarily by an increase in deposit interest expense and certain
non-interest expenses. PPNR was $41.3 million for the six months
ended June 30, 2023, compared to $42.2 million for the six months
ended June 30, 2022.1 The decrease in PPNR for the six months ended
June 30, 2023 compared to the six months ended June 30, 2022, was
primarily driven by growth in technology expenses due to
investments in applications aimed at enhancing both customer
relationship management and customer experience applications, 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").The impact of these variances were
partially offset by the year-over-year growth in loans and
expansion of the Corporation's net interest margin.
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.
Michael D. Peduzzi, President and CEO of both
the Corporation and CNB Bank, commented, “The success of several of
our critical strategies, including deepening our loan and deposit
relationships with well-established commercial and wealth
management customers, and expanding our core deposit base, while
funding previous loan commitments to creditworthy customers in our
newer markets, was overshadowed by the significant rise in deposit
costs in response to the numerous Fed rate increases over the past
year. The rise in deposit costs has been more substantial than
typical in the first six months of 2023 as a result of significant
in-market competition from both smaller and regional institutions
across our footprint. Still, we successfully achieved deposit
growth and reduced higher-cost wholesale borrowings from the
FHLB.
The second quarter also reflects certain costs
associated with strategic long-term growth initiatives for the
Corporation. We officially launched our women’s banking division,
Impressia Bank, including the hiring of our Divisional President,
Mary Kate Loftus, and relationship management personnel, and we are
already seeing positive leads for new women-owned small business
and deposit relationships in our Erie, Ohio, and Buffalo markets
where we focused our initial Impressia Bank business development
efforts. We also activated significant elements of our Customer
Relationship Management system, which has been helpful for all of
our divisions in connecting with both existing and prospective
customers, contributing to our strong year-to-date growth in both
loans and deposits. We successfully completed the implementation of
our new-account-opening module that allows retail and small
business customers to open and fund deposit relationships online,
which will be especially useful for our digital platform
strategies. And, we successfully opened our first two retail
locations in the Greater Roanoke, Virginia market of our Ridge View
Bank division, generating significant new customer deposit volume
to complement and self-fund Ridge View’s favorable loan growth to
date.
Our capital and liquidity resources remain
strong, and we have maintained our disciplined credit origination
and management activities, including close monitoring of commercial
real estate and commercial and industrial relationships. Our asset
quality remains sound and is supported by our adherence to
concentration limits established and maintained, and stress testing
risk management activities, to avoid undue adverse exposure to more
economic-sensitive segments.
We believe that our strategic initiatives and
expanded market presence will continue to expand our deposit base,
as well as add to our fee-based relationships, including those in
targeted growth markets in Ohio, New York, and Virginia. These
efforts will continue to stabilize our non-interest bearing and
lower-cost interest-bearing deposit base, and over time return our
total deposit betas to more normalized levels, providing for a more
cost-efficient funding of our loan portfolio to generate more
favorable net interest income growth. Our spread business will be
further complemented by expanding noninterest income from wealth
management, treasury management, and merchant services activities
through both new and deeper, existing fee-based services for our
commercial and private banking customers."
Other Balance Sheet
Highlights
- Book value per common share was
$23.42 at June 30, 2023, reflecting increases from $23.14 and
$21.70 at March 31, 2023 and June 30, 2022, respectively. Tangible
book value per common share, a non-GAAP measure, was $21.32 as of
June 30, 2023, also reflecting increases from $21.05 and $19.08 as
of March 31, 2023 and June 30, 2022, respectively.1 The changes in
book value per common share and tangible book value per common
share compared to March 31, 2023 were primarily due to a $9.1
million increase in retained earnings and the repurchase of 126,459
common shares at a weighted average price per share of $18.28,
partially offset by a $3.9 million increase 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.
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 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 applied to the deals when initially
underwritten and funding or commitments made. The Corporation
monitors numerous elements at both underwriting and through and
beyond the funding period, including each project’s occupancy,
updated appraisals and 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 June 30, 2023, the Corporation
had the following key metrics related to its commercial office
portfolio:
- Commercial office loans outstanding
consisted of 122 loans, totaling $118.1 million, or 2.6%, of total
loans outstanding;
- Nonaccrual commercial office loans
(three customer relationships) totaled $1.8 million, or 1.5% of
total office loans outstanding; and
- The average outstanding balance per
commercial office loan is $968 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 10.07% for the three months ended June 30, 2023, compared to
12.60% and 14.55% for the three months ended March 31, 2023 and
June 30, 2022, respectively. Annualized return on average equity
was 11.26% for the six months ended June 30, 2023, compared to
14.26% for the six months ended June 30, 2022.
- Annualized return on average
tangible common equity, a non-GAAP measure, was 11.40% for the
three months ended June 30, 2023, compared to 14.58% and 17.81% for
the three months ended March 31, 2023 and June 30, 2022,
respectively.1 Annualized return on average tangible common equity,
a non-GAAP measure, was 12.88% for the six months ended June 30,
2023, compared to 17.34% for the six months ended June 30,
2022.1
- While the previously discussed
common equity capital raise completed in September 2022
significantly enhanced the Corporation’s capital position, it also
impacted the performance ratios for the three and six months ended
June 30, 2023 and March 31, 2023 and the related comparison to June
30, 2022.
- The Corporation's efficiency ratio
was 64.78% for the three months ended June 30, 2023, compared to
61.04% and 59.89% for the three months ended March 31, 2023 and
June 30, 2022, respectively. The efficiency ratio on a fully
tax-equivalent basis, a non-GAAP ratio, was 64.10% for the three
months ended June 30, 2023, compared to 60.47% and 59.47% for the
three months ended March 31, 2023 and June 30, 2022, respectively.1
The increase for the three months ended June 30, 2023 compared to
March 31, 2023 was primarily a result of the Corporation's targeted
interest-bearing deposit rate increases and higher technology
expenses. The Corporation's efficiency ratio was 62.91% for the six
months ended June 30, 2023, compared to 60.44% for the six months
ended June 30, 2022. The efficiency ratio on a fully tax-equivalent
basis, a non-GAAP ratio, was 62.28% for the six months ended June
30, 2023, compared to 59.99% the six months ended June 30,
2022.1
Revenue
- Total revenue (net interest income
plus non-interest income) was $55.6 million for the three months
ended June 30, 2023, compared to $55.7 million and $54.4 million
for the three months ended March 31, 2023 and June 30, 2022,
respectively.
- Net interest income was $47.3
million for the three months ended June 30, 2023, compared to $47.6
million and $46.3 million, for the three months ended March 31,
2023 and June 30, 2022, respectively. When comparing the second
quarter of 2023 to the first quarter 2023, the decrease of $379
thousand, or 0.8%, was due to an increase in the Corporation's
interest expense as a result of targeted interest-bearing deposit
rate increases to ensure both deposit relationship retention, and
new deposit growth in recently entered expansion markets. When
comparing the second quarter of 2023 to the second quarter of 2022,
the increase in net interest income of $959 thousand, or 2.1%, was
primarily a result of loan growth and the cumulative year-over-year
benefits of the impact of rising interest rates resulting in
greater income on variable-rate loans.
- Net interest margin was 3.62%,
3.81% and 3.74% for the three months ended June 30, 2023, March 31,
2023 and June 30, 2022, respectively. Net interest margin on a
fully tax-equivalent basis, a non-GAAP measure, was 3.60%, 3.79%
and 3.73%, for the three months ended June 30, 2023, March 31, 2023
and June 30, 2022, respectively.1
- The yield on earning assets of
5.50% for the three months ended June 30, 2023 increased 21 basis
points and 149 basis points from March 31, 2023 and June 30, 2022,
respectively, primarily as a result of loan growth and the net
benefit of higher interest rates.
- The cost of interest-bearing
liabilities of 2.40% for the three months ended June 30, 2023
increased 46 basis points and 205 basis points from March 31, 2023
and June 30, 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 $111.2 million
for the six months ended June 30, 2023, compared to $106.7 million
for the six months ended June 30, 2022.
- Net interest income was $94.9
million for the six months ended June 30, 2023, compared to $88.9
million for the six months ended June 30, 2022. The increase of
$6.0 million, or 6.7%, was due to loan growth and the benefits of
the impact of rising interest rates resulting in greater income on
variable-rate loans, partially 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.
- Net interest margin was 3.71% and
3.60% for the six months ended June 30, 2023 and 2022,
respectively. Net interest margin on a fully tax-equivalent basis,
a non-GAAP measure, was 3.69% and 3.61% for the six months ended
June 30, 2023 and 2022, respectively.1
- The yield on earning assets of
5.40% for the six months ended June 30, 2023 increased 150 basis
points from June 30, 2022, primarily as a result of loan growth and
the net benefit of higher interest rates.
- The cost of interest-bearing
liabilities of 2.18% for the six months ended June 30, 2023
increased 182 basis points from June 30, 2022, primarily as a
result of the Corporation’s targeted interest-bearing deposit rate
increases and short-term borrowings through the FHLB.
- Total non-interest income was $8.3
million for the three months ended June 30, 2023 compared to $8.0
million and $8.1 million for the three months ended March 31, 2023
and June 30, 2022, respectively. During the three months ended June
30, 2023, Wealth and Asset Management fees increased $100 thousand,
or 5.5%, compared to the three months ended March 31, 2023. Other
notable changes compared to the three months ended March 31, 2023
included seasonally higher “other” service charges and fees,
partially offset by lower pass-through income received from SBICs.
During the three months ended June 30, 2023, Wealth and Asset
Management fees increased $114 thousand, or 6.3%, compared to the
three months ended June 30, 2022. Other notable changes when
comparing the second quarter of 2023 to the second quarter of 2022
included higher other service charges and fees and lower unrealized
losses on equity securities, partially offset by lower bank owned
life insurance income and lower mortgage banking income.
- Total non-interest income was $16.3
million for the six months ended June 30, 2023 compared to $17.8
million for the six months ended June 30, 2022. During the six
months ended June 30, 2023, Wealth and Asset Management fees
increased $148 thousand, or 4.1%, compared to the six months ended
June 30, 2022, as the Corporation benefited from an increased
number of wealth management relationships. Other notable favorable
changes compared to the six months ended June 30, 2022 included
higher other service charges and fees, lower unrealized losses on
equity securities, and an increase in card processing and
interchange income. These were offset by certain unfavorable
variances including lower net realized gains on the sale of
available-for-sale debt securities, lower bank owned life insurance
income and lower other non-interest income driven by a decrease in
gains on recoveries from acquired loans and lower pass-through
income from SBICs.
Non-Interest Expense
- For the three months ended June 30,
2023, total non-interest expense was $36.0 million, compared to
$34.0 million and $32.6 million for the three months ended March
31, 2023 and June 30, 2022, respectively. The increase of $2.0
million, or 5.9%, from the three months ended March 31, 2023, was
primarily a result of timing of technology expenses related to
investments in applications aimed at expanding customer
relationship management capabilities, as well as enhancing both
customer experience and expanding service delivery channels. We
also realized an increase in other non-interest expenses from
inflationary increases across several categories. The increase of
$3.4 million, or 10.4%, from the three months ended June 30, 2022,
was primarily a result of the above mentioned higher technology
expenses and inflationary increases in other non-interest
expenses.
- For the six months ended June 30,
2023, total non-interest expense was $70.0 million, compared to
$64.5 million for the six months ended June 30, 2022. The increase
of $5.5 million, or 8.5%, from the six months ended June 30, 2022,
was primarily a result of higher technology expenses, combined with
higher card processing and interchange expenses. In addition, other
non-interest expenses increased primarily due to business
generation related expenses and consulting fees.
Income Taxes
- Income tax expense for the three
months ended June 30, 2023 was $3.3 million, representing a 19.4%
effective tax rate, compared to $3.9 million, representing a 19.2%
effective tax rate for the three months ended March 31, 2023 and
$3.5 million, representing a 18.5% effective tax rate for the three
months ended June 30, 2022. Income tax expense was $7.2 million,
representing a 19.3% effective tax rate, compared to $7.0 million,
representing a 18.5% effective tax rate for the six months ended
June 30, 2023 and 2022, respectively.
Asset Quality
- Total nonperforming assets were
approximately $24.2 million, or 0.43% of total assets, as of June
30, 2023, compared to $23.7 million, or 0.42% of total assets, as
of March 31, 2023, and $20.7 million, or 0.39% of total assets, as
of June 30, 2022.
- The allowance for credit losses
measured as a percentage of total loans was 1.02% as of June 30,
2023 and March 31, 2023, and 1.04% as of June 30, 2022. In
addition, the allowance for credit losses as a percentage of
nonaccrual loans was 215.06% as of June 30, 2023, compared to
209.54% and 213.90% as of March 31, 2023 and June 30, 2022,
respectively.
- The provision for credit losses was
$2.4 million for the three months ended June 30, 2023, compared to
$1.3 million and $2.9 million for the three months ended March 31,
2023 and June 30, 2022, respectively. Included in the provision for
credit losses for the three months ended June 30, 2023 was a $56
thousand expense related to the allowance for unfunded commitments
compared to $59 thousand for the three months ended March 31, 2023
and zero for the three months ended June 30, 2022. The increase in
the provision expense of $1.1 million for the second quarter of
2023 compared to the first quarter of 2023 was primarily a result
of allocating reserves on the higher loan portfolio growth in the
second quarter of 2023 compared to the first quarter of 2023, as
the overall nonperforming loan profile remained relatively
consistent quarter over quarter.
- The provision for credit losses was
$3.7 million for the six months ended June 30, 2023, compared to
$4.5 million for the six months ended June 30, 2022. Included in
the provision for credit losses for the six months ended June 30,
2023 was $115 thousand expense related to the allowance for
unfunded commitments compared to $586 thousand for the six months
ended June 30, 2022. The reduction in the provision expense of $853
thousand from the six months ended June 30, 2022 was primarily a
result of the relatively lower loan portfolio growth in the first
six months of 2023 compared to the first six months of 2022.
- For the three months ended June 30,
2023, net loan charge-offs were $789 thousand, or 0.07%
(annualized) of average total loans and loans held for sale,
compared to $686 thousand, or 0.07% (annualized) of average total
loans and loans held for sale, during the three months ended March
31, 2023, and $479 thousand, or 0.05% (annualized) of average total
loans and loans held for sale, during the three months ended June
30, 2022.
- For the six months ended June 30,
2023, net loan charge-offs were $1.5 million, or 0.07% (annualized)
of average total loans and loans held for sale, compared to $1.0
million, or 0.05% (annualized) of average total loans and loans
held for sale, during the six months ended June 30, 2022.
Capital
- As of June 30, 2023, the
Corporation’s total shareholders’ equity was $549.6 million,
representing an increase of $3.2 million, or 0.6%, from March 31,
2023, primarily due to the increase in the Corporation's retained
earnings (quarterly net income, partially offset by the common and
preferred dividends paid in the quarter). This increase was
partially offset by additional accumulated other comprehensive
losses during the quarter resulting primarily from the after-tax
impact of the temporary unrealized reduction in the value of the
available-for-sale investment portfolio and the Corporation also
increased treasury stock as a result of the repurchase of 126,459
common shares during the second quarter 2023.
- Regulatory capital ratios for the
Corporation continue to exceed regulatory “well-capitalized” levels
as of June 30, 2023.
- As of June 30, 2023, the
Corporation’s ratio of common shareholders' equity to total assets
was 8.68% compared to 8.75% at March 31, 2023. As of June 30, 2023,
the Corporation’s ratio of tangible common equity to tangible
assets, a non-GAAP measure, was 7.97% compared to 8.02% at March
31, 2023. This decrease was the result of an increase in
accumulated other comprehensive loss and an increase in treasury
stock from repurchase activities, partially offset by the increase
in retained earnings during the three months ended June 30,
2023.1
About CNB Financial
Corporation
CNB Financial Corporation is a financial holding
company with consolidated assets of approximately $5.7 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 50 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, with offices in the Southwest Virginia region; and
Impressia Bank 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 |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Income
Statement |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
66,899 |
|
|
$ |
62,327 |
|
|
$ |
44,666 |
|
|
$ |
129,226 |
|
|
$ |
85,816 |
|
Processing fees on PPP
loans |
|
|
2 |
|
|
|
1 |
|
|
|
559 |
|
|
|
3 |
|
|
|
1,796 |
|
Interest and dividends on
securities and cash and cash equivalents |
|
|
5,431 |
|
|
|
4,312 |
|
|
|
4,516 |
|
|
|
9,743 |
|
|
|
8,383 |
|
Interest expense |
|
|
(25,072 |
) |
|
|
(19,001 |
) |
|
|
(3,440 |
) |
|
|
(44,073 |
) |
|
|
(7,077 |
) |
Net interest income |
|
|
47,260 |
|
|
|
47,639 |
|
|
|
46,301 |
|
|
|
94,899 |
|
|
|
88,918 |
|
Provision for credit
losses |
|
|
2,405 |
|
|
|
1,290 |
|
|
|
2,905 |
|
|
|
3,695 |
|
|
|
4,548 |
|
Net interest income after provision for credit losses |
|
|
44,855 |
|
|
|
46,349 |
|
|
|
43,396 |
|
|
|
91,204 |
|
|
|
84,370 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
Wealth and asset management fees |
|
|
1,917 |
|
|
|
1,817 |
|
|
|
1,803 |
|
|
|
3,734 |
|
|
|
3,586 |
|
Service charges on deposit accounts |
|
|
1,913 |
|
|
|
1,795 |
|
|
|
1,771 |
|
|
|
3,708 |
|
|
|
3,528 |
|
Other service charges and fees |
|
|
1,085 |
|
|
|
631 |
|
|
|
784 |
|
|
|
1,716 |
|
|
|
1,439 |
|
Net realized gains on available-for-sale securities |
|
|
30 |
|
|
|
22 |
|
|
|
0 |
|
|
|
52 |
|
|
|
651 |
|
Net realized and unrealized losses on equity securities |
|
|
(244 |
) |
|
|
(286 |
) |
|
|
(641 |
) |
|
|
(530 |
) |
|
|
(1,035 |
) |
Mortgage banking |
|
|
176 |
|
|
|
168 |
|
|
|
292 |
|
|
|
344 |
|
|
|
767 |
|
Bank owned life insurance |
|
|
693 |
|
|
|
764 |
|
|
|
1,390 |
|
|
|
1,457 |
|
|
|
2,084 |
|
Card processing and interchange income |
|
|
2,062 |
|
|
|
2,059 |
|
|
|
1,992 |
|
|
|
4,121 |
|
|
|
3,801 |
|
Other non-interest income |
|
|
661 |
|
|
|
1,072 |
|
|
|
755 |
|
|
|
1,733 |
|
|
|
2,979 |
|
Total non-interest income |
|
|
8,293 |
|
|
|
8,042 |
|
|
|
8,146 |
|
|
|
16,335 |
|
|
|
17,800 |
|
Non-interest expenses |
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
|
17,059 |
|
|
|
17,045 |
|
|
|
16,771 |
|
|
|
34,104 |
|
|
|
33,759 |
|
Net occupancy expense of premises |
|
|
3,628 |
|
|
|
3,566 |
|
|
|
3,335 |
|
|
|
7,194 |
|
|
|
6,565 |
|
Technology expense |
|
|
5,187 |
|
|
|
4,258 |
|
|
|
4,024 |
|
|
|
9,445 |
|
|
|
7,396 |
|
Advertising expense |
|
|
701 |
|
|
|
544 |
|
|
|
537 |
|
|
|
1,245 |
|
|
|
1,157 |
|
State and local taxes |
|
|
1,030 |
|
|
|
1,050 |
|
|
|
1,037 |
|
|
|
2,080 |
|
|
|
2,085 |
|
Legal, professional, and examination fees |
|
|
1,002 |
|
|
|
845 |
|
|
|
1,176 |
|
|
|
1,847 |
|
|
|
2,013 |
|
FDIC insurance premiums |
|
|
1,001 |
|
|
|
873 |
|
|
|
710 |
|
|
|
1,874 |
|
|
|
1,433 |
|
Card processing and interchange expenses |
|
|
1,572 |
|
|
|
1,490 |
|
|
|
1,256 |
|
|
|
3,062 |
|
|
|
2,285 |
|
Other non-interest expense |
|
|
4,808 |
|
|
|
4,319 |
|
|
|
3,763 |
|
|
|
9,127 |
|
|
|
7,808 |
|
Total non-interest expenses |
|
|
35,988 |
|
|
|
33,990 |
|
|
|
32,609 |
|
|
|
69,978 |
|
|
|
64,501 |
|
Income before income
taxes |
|
|
17,160 |
|
|
|
20,401 |
|
|
|
18,933 |
|
|
|
37,561 |
|
|
|
37,669 |
|
Income tax expense |
|
|
3,333 |
|
|
|
3,912 |
|
|
|
3,495 |
|
|
|
7,245 |
|
|
|
6,986 |
|
Net income |
|
|
13,827 |
|
|
|
16,489 |
|
|
|
15,438 |
|
|
|
30,316 |
|
|
|
30,683 |
|
Preferred stock dividends |
|
|
1,075 |
|
|
|
1,075 |
|
|
|
1,075 |
|
|
|
2,150 |
|
|
|
2,150 |
|
Net income available to common
shareholders |
|
$ |
12,752 |
|
|
$ |
15,414 |
|
|
$ |
14,363 |
|
|
$ |
28,166 |
|
|
$ |
28,533 |
|
|
|
|
|
|
|
|
|
|
|
|
Ending shares outstanding |
|
|
20,997,053 |
|
|
|
21,116,928 |
|
|
|
16,859,586 |
|
|
|
20,997,053 |
|
|
|
16,859,586 |
|
Average diluted common shares
outstanding |
|
|
20,956,575 |
|
|
|
21,077,531 |
|
|
|
16,815,124 |
|
|
|
21,019,178 |
|
|
|
16,829,535 |
|
Diluted earnings per common
share |
|
$ |
0.61 |
|
|
$ |
0.73 |
|
|
$ |
0.85 |
|
|
$ |
1.33 |
|
|
$ |
1.69 |
|
Cash dividends per common
share |
|
$ |
0.175 |
|
|
$ |
0.175 |
|
|
$ |
0.175 |
|
|
$ |
0.350 |
|
|
$ |
0.350 |
|
Dividend payout ratio |
|
|
29 |
% |
|
|
24 |
% |
|
|
21 |
% |
|
|
26 |
% |
|
|
21 |
% |
CNB FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in thousands, except per share
data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Average
Balances |
|
|
|
|
|
|
|
|
|
|
Total loans and loans held for sale |
|
$ |
4,376,223 |
|
|
$ |
4,257,033 |
|
|
$ |
3,836,562 |
|
|
$ |
4,317,023 |
|
|
$ |
3,753,149 |
|
Investment securities |
|
|
770,605 |
|
|
|
794,768 |
|
|
|
839,169 |
|
|
|
782,689 |
|
|
|
822,230 |
|
Total earning assets |
|
|
5,238,471 |
|
|
|
5,068,689 |
|
|
|
4,967,597 |
|
|
|
5,154,147 |
|
|
|
4,974,964 |
|
Total assets |
|
|
5,607,947 |
|
|
|
5,426,320 |
|
|
|
5,291,987 |
|
|
|
5,517,755 |
|
|
|
5,291,851 |
|
Noninterest-bearing
deposits |
|
|
793,686 |
|
|
|
837,734 |
|
|
|
839,009 |
|
|
|
813,382 |
|
|
|
822,007 |
|
Interest-bearing deposits |
|
|
4,047,224 |
|
|
|
3,770,150 |
|
|
|
3,856,539 |
|
|
|
3,909,453 |
|
|
|
3,865,177 |
|
Shareholders' equity |
|
|
550,490 |
|
|
|
530,806 |
|
|
|
425,450 |
|
|
|
543,039 |
|
|
|
433,753 |
|
Tangible common shareholders'
equity (non-GAAP) (1) |
|
|
448,497 |
|
|
|
428,813 |
|
|
|
323,490 |
|
|
|
441,046 |
|
|
|
331,780 |
|
|
|
|
|
|
|
|
|
|
|
|
Average Yields
(annualized) |
|
|
|
|
|
|
|
|
|
|
Total loans and loans held for
sale |
|
|
6.15 |
% |
|
|
5.96 |
% |
|
|
4.75 |
% |
|
|
6.06 |
% |
|
|
4.74 |
% |
Investment securities |
|
|
1.99 |
% |
|
|
1.95 |
% |
|
|
1.80 |
% |
|
|
1.96 |
% |
|
|
1.83 |
% |
Total earning assets |
|
|
5.50 |
% |
|
|
5.29 |
% |
|
|
4.01 |
% |
|
|
5.40 |
% |
|
|
3.90 |
% |
Interest-bearing deposits |
|
|
2.34 |
% |
|
|
1.80 |
% |
|
|
0.26 |
% |
|
|
2.08 |
% |
|
|
0.27 |
% |
Interest-bearing
liabilities |
|
|
2.40 |
% |
|
|
1.94 |
% |
|
|
0.35 |
% |
|
|
2.18 |
% |
|
|
0.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized) |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.99 |
% |
|
|
1.23 |
% |
|
|
1.17 |
% |
|
|
1.11 |
% |
|
|
1.17 |
% |
Return on average equity |
|
|
10.07 |
% |
|
|
12.60 |
% |
|
|
14.55 |
% |
|
|
11.26 |
% |
|
|
14.26 |
% |
Return on average tangible
common equity (non-GAAP) (1) |
|
|
11.40 |
% |
|
|
14.58 |
% |
|
|
17.81 |
% |
|
|
12.88 |
% |
|
|
17.34 |
% |
Net interest margin, fully tax
equivalent basis (non-GAAP) (1) |
|
|
3.60 |
% |
|
|
3.79 |
% |
|
|
3.73 |
% |
|
|
3.69 |
% |
|
|
3.61 |
% |
Efficiency Ratio, fully tax
equivalent basis (non-GAAP) (1) |
|
|
64.10 |
% |
|
|
60.47 |
% |
|
|
59.47 |
% |
|
|
62.28 |
% |
|
|
59.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
Net Loan
Charge-Offs |
|
|
|
|
|
|
|
|
|
|
CNB Bank net loan
charge-offs |
|
$ |
379 |
|
|
$ |
195 |
|
|
$ |
161 |
|
|
$ |
574 |
|
|
$ |
319 |
|
Holiday Financial net loan
charge-offs |
|
|
410 |
|
|
|
491 |
|
|
|
318 |
|
|
|
901 |
|
|
|
688 |
|
Total Corporation net loan
charge-offs |
|
$ |
789 |
|
|
$ |
686 |
|
|
$ |
479 |
|
|
$ |
1,475 |
|
|
$ |
1,007 |
|
Annualized net loan
charge-offs / average total loans and loans held for sale |
|
|
0.07 |
% |
|
|
0.07 |
% |
|
|
0.05 |
% |
|
|
0.07 |
% |
|
|
0.05 |
% |
CNB
FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars
in thousands, except per share data) |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
Ending Balance
Sheet |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
58,278 |
|
|
$ |
51,206 |
|
|
$ |
61,585 |
|
Interest-bearing deposits with
Federal Reserve |
|
|
62,644 |
|
|
|
132,696 |
|
|
|
217,776 |
|
Interest-bearing deposits with
other financial institutions |
|
|
4,241 |
|
|
|
4,691 |
|
|
|
4,793 |
|
Total cash and cash equivalents |
|
|
125,163 |
|
|
|
188,593 |
|
|
|
284,154 |
|
Debt securities
available-for-sale, at fair value |
|
|
353,136 |
|
|
|
368,607 |
|
|
|
404,407 |
|
Debt securities
held-to-maturity, at amortized cost |
|
|
394,238 |
|
|
|
402,300 |
|
|
|
413,310 |
|
Equity securities |
|
|
9,266 |
|
|
|
9,416 |
|
|
|
9,539 |
|
Loans held for sale |
|
|
1,654 |
|
|
|
448 |
|
|
|
843 |
|
Loans receivable |
|
|
|
|
|
|
PPP loans, net of deferred processing fees |
|
|
67 |
|
|
|
144 |
|
|
|
2,287 |
|
Syndicated loans |
|
|
145,627 |
|
|
|
148,085 |
|
|
|
153,154 |
|
Loans |
|
|
4,319,140 |
|
|
|
4,153,068 |
|
|
|
3,754,312 |
|
Total loans receivable |
|
|
4,464,834 |
|
|
|
4,301,297 |
|
|
|
3,909,753 |
|
Less: allowance for credit losses |
|
|
(45,541 |
) |
|
|
(43,981 |
) |
|
|
(40,543 |
) |
Net loans receivable |
|
|
4,419,293 |
|
|
|
4,257,316 |
|
|
|
3,869,210 |
|
Goodwill and other
intangibles |
|
|
43,874 |
|
|
|
43,874 |
|
|
|
43,749 |
|
Core deposit intangible |
|
|
320 |
|
|
|
342 |
|
|
|
410 |
|
Other assets |
|
|
316,656 |
|
|
|
312,438 |
|
|
|
273,693 |
|
Total Assets |
|
$ |
5,663,600 |
|
|
$ |
5,583,334 |
|
|
$ |
5,299,315 |
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
$ |
808,074 |
|
|
$ |
810,623 |
|
|
$ |
851,172 |
|
Interest-bearing demand
deposits |
|
|
861,871 |
|
|
|
958,756 |
|
|
|
1,147,376 |
|
Savings |
|
|
2,708,386 |
|
|
|
2,442,903 |
|
|
|
2,398,995 |
|
Certificates of deposit |
|
|
554,744 |
|
|
|
541,847 |
|
|
|
304,277 |
|
Total deposits |
|
|
4,933,075 |
|
|
|
4,754,129 |
|
|
|
4,701,820 |
|
Short-term borrowings |
|
|
0 |
|
|
|
102,083 |
|
|
|
0 |
|
Subordinated debentures |
|
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
Subordinated notes, net of
issuance costs |
|
|
84,115 |
|
|
|
84,040 |
|
|
|
83,812 |
|
Other liabilities |
|
|
76,156 |
|
|
|
76,035 |
|
|
|
69,475 |
|
Total liabilities |
|
|
5,113,966 |
|
|
|
5,036,907 |
|
|
|
4,875,727 |
|
Common stock |
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Preferred stock |
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Additional paid in
capital |
|
|
219,723 |
|
|
|
219,561 |
|
|
|
126,986 |
|
Retained earnings |
|
|
327,707 |
|
|
|
318,629 |
|
|
|
283,204 |
|
Treasury stock |
|
|
(4,996 |
) |
|
|
(2,867 |
) |
|
|
(3,026 |
) |
Accumulated other
comprehensive loss |
|
|
(50,585 |
) |
|
|
(46,681 |
) |
|
|
(41,361 |
) |
Total shareholders' equity |
|
|
549,634 |
|
|
|
546,427 |
|
|
|
423,588 |
|
Total liabilities and shareholders' equity |
|
$ |
5,663,600 |
|
|
$ |
5,583,334 |
|
|
$ |
5,299,315 |
|
|
|
|
|
|
|
|
Book value per common
share |
|
$ |
23.42 |
|
|
$ |
23.14 |
|
|
$ |
21.70 |
|
Tangible book value per common
share (non-GAAP) (1) |
|
$ |
21.32 |
|
|
$ |
21.05 |
|
|
$ |
19.08 |
|
CNB
FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars
in thousands, except per share data) |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
Capital Ratios |
|
|
|
|
|
|
Tangible common equity / tangible assets (non-GAAP) (1) |
|
|
7.97 |
% |
|
|
8.02 |
% |
|
|
6.12 |
% |
Tier 1 leverage
ratio (2) |
|
|
10.44 |
% |
|
|
10.66 |
% |
|
|
8.53 |
% |
Common equity tier 1
ratio (2) |
|
|
11.20 |
% |
|
|
11.35 |
% |
|
|
9.30 |
% |
Tier 1 risk-based
ratio (2) |
|
|
12.93 |
% |
|
|
13.13 |
% |
|
|
11.25 |
% |
Total risk-based
ratio (2) |
|
|
15.73 |
% |
|
|
15.97 |
% |
|
|
14.23 |
% |
|
|
|
|
|
|
|
Asset Quality Detail |
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
21,176 |
|
|
$ |
20,989 |
|
|
$ |
18,954 |
|
Loans 90+ days past due and
accruing |
|
|
1,373 |
|
|
|
1,075 |
|
|
|
1,060 |
|
Total nonperforming loans |
|
|
22,549 |
|
|
|
22,064 |
|
|
|
20,014 |
|
Other real estate owned |
|
|
1,575 |
|
|
|
1,600 |
|
|
|
686 |
|
Total nonperforming assets |
|
$ |
24,124 |
|
|
$ |
23,664 |
|
|
$ |
20,700 |
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
Nonperforming assets / Total
loans + OREO |
|
|
0.54 |
% |
|
|
0.55 |
% |
|
|
0.53 |
% |
Nonperforming assets / Total
assets |
|
|
0.43 |
% |
|
|
0.42 |
% |
|
|
0.39 |
% |
Ratio of allowance for credit
losses on loans to nonaccrual loans |
|
|
215.06 |
% |
|
|
209.54 |
% |
|
|
213.90 |
% |
Allowance for credit losses /
Total loans |
|
|
1.02 |
% |
|
|
1.02 |
% |
|
|
1.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 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, |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) (4) |
|
$ |
730,224 |
|
|
1.89 |
% |
|
$ |
3,700 |
|
$ |
748,171 |
|
|
1.90 |
% |
|
$ |
3,766 |
|
$ |
793,598 |
|
|
1.75 |
% |
|
$ |
3,623 |
Tax-exempt (1) (2) (4) |
|
|
30,274 |
|
|
2.59 |
% |
|
|
209 |
|
|
33,390 |
|
|
2.67 |
% |
|
|
234 |
|
|
37,719 |
|
|
2.87 |
% |
|
|
284 |
Equity securities (1) (2) |
|
|
10,107 |
|
|
7.22 |
% |
|
|
182 |
|
|
13,207 |
|
|
2.86 |
% |
|
|
93 |
|
|
7,852 |
|
|
1.89 |
% |
|
|
37 |
Total securities (4) |
|
|
770,605 |
|
|
1.99 |
% |
|
|
4,091 |
|
|
794,768 |
|
|
1.95 |
% |
|
|
4,093 |
|
|
839,169 |
|
|
1.80 |
% |
|
|
3,944 |
Loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (2) (3) |
|
|
1,512,107 |
|
|
6.46 |
% |
|
|
24,342 |
|
|
1,508,584 |
|
|
6.29 |
% |
|
|
23,388 |
|
|
1,424,078 |
|
|
4.66 |
% |
|
|
16,558 |
Mortgage and loans held for sale (2) (3) |
|
|
2,735,693 |
|
|
5.73 |
% |
|
|
39,089 |
|
|
2,627,728 |
|
|
5.51 |
% |
|
|
35,731 |
|
|
2,301,999 |
|
|
4.55 |
% |
|
|
26,096 |
Consumer (3) |
|
|
128,423 |
|
|
11.46 |
% |
|
|
3,670 |
|
|
120,721 |
|
|
11.55 |
% |
|
|
3,434 |
|
|
110,485 |
|
|
10.23 |
% |
|
|
2,819 |
Total loans receivable (3) |
|
|
4,376,223 |
|
|
6.15 |
% |
|
|
67,101 |
|
|
4,257,033 |
|
|
5.96 |
% |
|
|
62,553 |
|
|
3,836,562 |
|
|
4.75 |
% |
|
|
45,473 |
Interest-bearing deposits with
the Federal Reserve and other financial institutions |
|
|
91,643 |
|
|
6.05 |
% |
|
|
1,383 |
|
|
16,888 |
|
|
6.34 |
% |
|
|
264 |
|
|
291,866 |
|
|
0.87 |
% |
|
|
630 |
Total earning assets |
|
|
5,238,471 |
|
|
5.50 |
% |
|
$ |
72,575 |
|
|
5,068,689 |
|
|
5.29 |
% |
|
$ |
66,910 |
|
|
4,967,597 |
|
|
4.01 |
% |
|
$ |
50,047 |
Noninterest-bearing
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
55,632 |
|
|
|
|
|
|
|
52,323 |
|
|
|
|
|
|
|
49,307 |
|
|
|
|
|
Premises and equipment |
|
|
108,296 |
|
|
|
|
|
|
|
102,821 |
|
|
|
|
|
|
|
88,472 |
|
|
|
|
|
Other assets |
|
|
250,019 |
|
|
|
|
|
|
|
245,914 |
|
|
|
|
|
|
|
225,358 |
|
|
|
|
|
Allowance for credit losses |
|
|
(44,471 |
) |
|
|
|
|
|
|
(43,427 |
) |
|
|
|
|
|
|
(38,747 |
) |
|
|
|
|
Total non interest-bearing assets |
|
|
369,476 |
|
|
|
|
|
|
|
357,631 |
|
|
|
|
|
|
|
324,390 |
|
|
|
|
|
TOTAL ASSETS |
|
$ |
5,607,947 |
|
|
|
|
|
|
$ |
5,426,320 |
|
|
|
|
|
|
$ |
5,291,987 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand—interest-bearing |
|
$ |
888,804 |
|
|
0.62 |
% |
|
$ |
1,383 |
|
$ |
936,147 |
|
|
0.48 |
% |
|
$ |
1,101 |
|
$ |
1,105,651 |
|
|
0.17 |
% |
|
$ |
480 |
Savings |
|
|
2,608,232 |
|
|
2.82 |
% |
|
|
18,326 |
|
|
2,343,188 |
|
|
2.21 |
% |
|
|
12,740 |
|
|
2,426,518 |
|
|
0.17 |
% |
|
|
1,048 |
Time |
|
|
550,188 |
|
|
2.82 |
% |
|
|
3,869 |
|
|
490,815 |
|
|
2.36 |
% |
|
|
2,858 |
|
|
324,370 |
|
|
1.19 |
% |
|
|
959 |
Total interest-bearing deposits |
|
|
4,047,224 |
|
|
2.34 |
% |
|
|
23,578 |
|
|
3,770,150 |
|
|
1.80 |
% |
|
|
16,699 |
|
|
3,856,539 |
|
|
0.26 |
% |
|
|
2,487 |
Short-term borrowings |
|
|
33,920 |
|
|
5.21 |
% |
|
|
441 |
|
|
102,318 |
|
|
4.99 |
% |
|
|
1,259 |
|
|
0 |
|
|
0.00 |
% |
|
|
0 |
Finance lease liabilities |
|
|
350 |
|
|
4.58 |
% |
|
|
4 |
|
|
372 |
|
|
4.36 |
% |
|
|
4 |
|
|
437 |
|
|
4.59 |
% |
|
|
5 |
Subordinated notes and
debentures |
|
|
104,698 |
|
|
4.02 |
% |
|
|
1,049 |
|
|
104,622 |
|
|
4.03 |
% |
|
|
1,039 |
|
|
104,394 |
|
|
3.64 |
% |
|
|
948 |
Total interest-bearing liabilities |
|
|
4,186,192 |
|
|
2.40 |
% |
|
$ |
25,072 |
|
|
3,977,462 |
|
|
1.94 |
% |
|
$ |
19,001 |
|
|
3,961,370 |
|
|
0.35 |
% |
|
$ |
3,440 |
Demand—noninterest-bearing |
|
|
793,686 |
|
|
|
|
|
|
|
837,734 |
|
|
|
|
|
|
|
839,009 |
|
|
|
|
|
Other liabilities |
|
|
77,579 |
|
|
|
|
|
|
|
80,318 |
|
|
|
|
|
|
|
66,158 |
|
|
|
|
|
Total Liabilities |
|
|
5,057,457 |
|
|
|
|
|
|
|
4,895,514 |
|
|
|
|
|
|
|
4,866,537 |
|
|
|
|
|
Shareholders’ equity |
|
|
550,490 |
|
|
|
|
|
|
|
530,806 |
|
|
|
|
|
|
|
425,450 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
5,607,947 |
|
|
|
|
|
|
$ |
5,426,320 |
|
|
|
|
|
|
$ |
5,291,987 |
|
|
|
|
|
Interest income/Earning
assets |
|
|
|
5.50 |
% |
|
$ |
72,575 |
|
|
|
5.29 |
% |
|
$ |
66,910 |
|
|
|
4.01 |
% |
|
$ |
50,047 |
Interest
expense/Interest-bearing liabilities |
|
|
|
2.40 |
% |
|
|
25,072 |
|
|
|
1.94 |
% |
|
|
19,001 |
|
|
|
0.35 |
% |
|
|
3,440 |
Net interest spread |
|
|
|
3.10 |
% |
|
$ |
47,503 |
|
|
|
3.35 |
% |
|
$ |
47,909 |
|
|
|
3.66 |
% |
|
$ |
46,607 |
Interest income/Earning
assets |
|
|
|
5.50 |
% |
|
|
72,575 |
|
|
|
5.29 |
% |
|
|
66,910 |
|
|
|
4.01 |
% |
|
|
50,047 |
Interest expense/Earning
assets |
|
|
|
1.90 |
% |
|
|
25,072 |
|
|
|
1.50 |
% |
|
|
19,001 |
|
|
|
0.28 |
% |
|
|
3,440 |
Net interest margin (fully
tax-equivalent) |
|
|
|
3.60 |
% |
|
$ |
47,503 |
|
|
|
3.79 |
% |
|
$ |
47,909 |
|
|
|
3.73 |
% |
|
$ |
46,607 |
(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 June 30, 2023,
March 31, 2023 and June 30, 2022 was $243 thousand, $270 thousand
and $306 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 June 30, 2023, March 31, 2023 and
June 30, 2022 was $(55.9) million, $(58.7) million and $(37.5)
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 |
|
|
Six Months Ended, |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) (4) |
|
$ |
739,201 |
|
|
1.90 |
% |
|
$ |
7,466 |
|
|
$ |
776,683 |
|
|
1.77 |
% |
|
$ |
7,024 |
|
Tax-exempt (1) (2) (4) |
|
|
31,824 |
|
|
2.63 |
% |
|
|
443 |
|
|
|
37,653 |
|
|
2.94 |
% |
|
|
559 |
|
Equity securities (1) (2) |
|
|
11,664 |
|
|
4.75 |
% |
|
|
275 |
|
|
|
7,894 |
|
|
2.02 |
% |
|
|
79 |
|
Total securities (4) |
|
|
782,689 |
|
|
1.96 |
% |
|
|
8,184 |
|
|
|
822,230 |
|
|
1.83 |
% |
|
|
7,662 |
|
Loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (2) (3) |
|
|
1,510,355 |
|
|
6.37 |
% |
|
|
47,730 |
|
|
|
1,390,790 |
|
|
4.68 |
% |
|
|
32,254 |
|
Mortgage and loans held for sale (2) (3) |
|
|
2,682,009 |
|
|
5.63 |
% |
|
|
74,821 |
|
|
|
2,253,517 |
|
|
4.51 |
% |
|
|
50,388 |
|
Consumer (3) |
|
|
124,659 |
|
|
11.49 |
% |
|
|
7,104 |
|
|
|
108,842 |
|
|
10.19 |
% |
|
|
5,498 |
|
Total loans receivable (3) |
|
|
4,317,023 |
|
|
6.06 |
% |
|
|
129,655 |
|
|
|
3,753,149 |
|
|
4.74 |
% |
|
|
88,140 |
|
Interest-bearing deposits with
the Federal Reserve and other financial institutions |
|
|
54,435 |
|
|
6.10 |
% |
|
|
1,647 |
|
|
|
399,585 |
|
|
0.43 |
% |
|
|
843 |
|
Total earning assets |
|
|
5,154,147 |
|
|
5.40 |
% |
|
$ |
139,486 |
|
|
|
4,974,964 |
|
|
3.90 |
% |
|
$ |
96,645 |
|
Noninterest-bearing
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
53,981 |
|
|
|
|
|
|
|
49,612 |
|
|
|
|
|
Premises and equipment |
|
|
105,574 |
|
|
|
|
|
|
|
86,112 |
|
|
|
|
|
Other assets |
|
|
248,010 |
|
|
|
|
|
|
|
219,560 |
|
|
|
|
|
Allowance for credit losses |
|
|
(43,957 |
) |
|
|
|
|
|
|
(38,397 |
) |
|
|
|
|
Total non interest-bearing assets |
|
|
363,608 |
|
|
|
|
|
|
|
316,887 |
|
|
|
|
|
TOTAL ASSETS |
|
$ |
5,517,755 |
|
|
|
|
|
|
$ |
5,291,851 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand—interest-bearing |
|
$ |
912,345 |
|
|
0.55 |
% |
|
$ |
2,484 |
|
|
$ |
1,076,240 |
|
|
0.17 |
% |
|
$ |
918 |
|
Savings |
|
|
2,476,442 |
|
|
2.53 |
% |
|
|
31,066 |
|
|
|
2,447,111 |
|
|
0.18 |
% |
|
|
2,163 |
|
Time |
|
|
520,666 |
|
|
2.61 |
% |
|
|
6,727 |
|
|
|
341,826 |
|
|
1.25 |
% |
|
|
2,112 |
|
Total interest-bearing deposits |
|
|
3,909,453 |
|
|
2.08 |
% |
|
|
40,277 |
|
|
|
3,865,177 |
|
|
0.27 |
% |
|
|
5,193 |
|
Short-term borrowings |
|
|
67,930 |
|
|
5.05 |
% |
|
|
1,700 |
|
|
|
0 |
|
|
0.00 |
% |
|
|
0 |
|
Finance lease liabilities |
|
|
361 |
|
|
4.47 |
% |
|
|
8 |
|
|
|
448 |
|
|
4.50 |
% |
|
|
10 |
|
Subordinated notes and
debentures |
|
|
104,660 |
|
|
4.02 |
% |
|
|
2,088 |
|
|
|
104,356 |
|
|
3.62 |
% |
|
|
1,874 |
|
Total interest-bearing liabilities |
|
|
4,082,404 |
|
|
2.18 |
% |
|
$ |
44,073 |
|
|
|
3,969,981 |
|
|
0.36 |
% |
|
$ |
7,077 |
|
Demand—noninterest-bearing |
|
|
813,382 |
|
|
|
|
|
|
|
822,007 |
|
|
|
|
|
Other liabilities |
|
|
78,930 |
|
|
|
|
|
|
|
66,110 |
|
|
|
|
|
Total Liabilities |
|
|
4,974,716 |
|
|
|
|
|
|
|
4,858,098 |
|
|
|
|
|
Shareholders’ equity |
|
|
543,039 |
|
|
|
|
|
|
|
433,753 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
5,517,755 |
|
|
|
|
|
|
$ |
5,291,851 |
|
|
|
|
|
Interest income/Earning
assets |
|
|
|
5.40 |
% |
|
$ |
139,486 |
|
|
|
|
3.90 |
% |
|
$ |
96,645 |
|
Interest
expense/Interest-bearing liabilities |
|
|
|
2.18 |
% |
|
|
44,073 |
|
|
|
|
0.36 |
% |
|
|
7,077 |
|
Net interest spread |
|
|
|
3.22 |
% |
|
$ |
95,413 |
|
|
|
|
3.54 |
% |
|
$ |
89,568 |
|
Interest income/Earning
assets |
|
|
|
5.40 |
% |
|
|
139,486 |
|
|
|
|
3.90 |
% |
|
|
96,645 |
|
Interest expense/Earning
assets |
|
|
|
1.71 |
% |
|
|
44,073 |
|
|
|
|
0.29 |
% |
|
|
7,077 |
|
Net interest margin (fully
tax-equivalent) |
|
|
|
3.69 |
% |
|
$ |
95,413 |
|
|
|
|
3.61 |
% |
|
$ |
89,568 |
|
(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 six months ended June 30, 2023 and 2022 was $514 thousand
and $650 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 six months ended June 30, 2023 and June 30, 2022 was
$(57.3) million and $(24.1) million, respectively. |
CNB
FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars
in thousands, except per share data)Reconciliation of Non-GAAP
Financial Measures |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
Calculation of
tangible book value per common share and tangible common equity /
tangible assets (non-GAAP): |
|
|
|
|
|
|
Shareholders' equity |
|
$ |
549,634 |
|
|
$ |
546,427 |
|
|
$ |
423,588 |
|
Less: preferred equity |
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Common shareholders' equity |
|
|
491,849 |
|
|
|
488,642 |
|
|
|
365,803 |
|
Less: goodwill and other
intangibles |
|
|
43,874 |
|
|
|
43,874 |
|
|
|
43,749 |
|
Less: core deposit
intangible |
|
|
320 |
|
|
|
342 |
|
|
|
410 |
|
Tangible common equity (non-GAAP) |
|
$ |
447,655 |
|
|
$ |
444,426 |
|
|
$ |
321,644 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,663,600 |
|
|
$ |
5,583,334 |
|
|
$ |
5,299,315 |
|
Less: goodwill and other
intangibles |
|
|
43,874 |
|
|
|
43,874 |
|
|
|
43,749 |
|
Less: core deposit
intangible |
|
|
320 |
|
|
|
342 |
|
|
|
410 |
|
Tangible assets (non-GAAP) |
|
$ |
5,619,406 |
|
|
$ |
5,539,118 |
|
|
$ |
5,255,156 |
|
|
|
|
|
|
|
|
Ending shares outstanding |
|
|
20,997,053 |
|
|
|
21,116,928 |
|
|
|
16,859,586 |
|
|
|
|
|
|
|
|
Book value per common share
(GAAP) |
|
$ |
23.42 |
|
|
$ |
23.14 |
|
|
$ |
21.70 |
|
Tangible book value per common
share (non-GAAP) |
|
$ |
21.32 |
|
|
$ |
21.05 |
|
|
$ |
19.08 |
|
|
|
|
|
|
|
|
Common shareholders' equity /
Total assets (GAAP) |
|
|
8.68 |
% |
|
|
8.75 |
% |
|
|
6.90 |
% |
Tangible common equity /
Tangible assets (non-GAAP) |
|
|
7.97 |
% |
|
|
8.02 |
% |
|
|
6.12 |
% |
CNB
FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars
in thousands, except per share data)Reconciliation of Non-GAAP
Financial Measures |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Calculation of net
interest margin: |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
72,332 |
|
|
$ |
66,640 |
|
|
$ |
49,741 |
|
|
$ |
138,972 |
|
|
$ |
95,995 |
|
Interest expense |
|
|
25,072 |
|
|
|
19,001 |
|
|
|
3,440 |
|
|
|
44,073 |
|
|
|
7,077 |
|
Net interest income |
|
$ |
47,260 |
|
|
$ |
47,639 |
|
|
$ |
46,301 |
|
|
$ |
94,899 |
|
|
$ |
88,918 |
|
|
|
|
|
|
|
|
|
|
|
|
Average total earning
assets |
|
$ |
5,238,471 |
|
|
$ |
5,068,689 |
|
|
$ |
4,967,597 |
|
|
$ |
5,154,147 |
|
|
$ |
4,974,964 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (GAAP)
(annualized) |
|
|
3.62 |
% |
|
|
3.81 |
% |
|
|
3.74 |
% |
|
|
3.71 |
% |
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
Calculation of net
interest margin (fully tax equivalent basis)
(non-GAAP): |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
72,332 |
|
|
$ |
66,640 |
|
|
$ |
49,741 |
|
|
$ |
138,972 |
|
|
$ |
95,995 |
|
Tax equivalent adjustment
(non-GAAP) |
|
|
243 |
|
|
|
270 |
|
|
|
306 |
|
|
|
514 |
|
|
|
650 |
|
Adjusted interest income (fully tax equivalent basis)
(non-GAAP) |
|
|
72,575 |
|
|
|
66,910 |
|
|
|
50,047 |
|
|
|
139,486 |
|
|
|
96,645 |
|
Interest expense |
|
|
25,072 |
|
|
|
19,001 |
|
|
|
3,440 |
|
|
|
44,073 |
|
|
|
7,077 |
|
Net interest income (fully tax equivalent basis) (non-GAAP) |
|
$ |
47,503 |
|
|
$ |
47,909 |
|
|
$ |
46,607 |
|
|
$ |
95,413 |
|
|
$ |
89,568 |
|
|
|
|
|
|
|
|
|
|
|
|
Average total earning
assets |
|
$ |
5,238,471 |
|
|
$ |
5,068,689 |
|
|
$ |
4,967,597 |
|
|
$ |
5,154,147 |
|
|
$ |
4,974,964 |
|
Less: average mark to market
adjustment on investments (non-GAAP) |
|
|
(55,940 |
) |
|
|
(58,664 |
) |
|
|
(37,519 |
) |
|
|
(57,294 |
) |
|
|
(24,101 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted average total earning assets, net of mark to market
(non-GAAP) |
|
$ |
5,294,411 |
|
|
$ |
5,127,353 |
|
|
$ |
5,005,116 |
|
|
$ |
5,211,441 |
|
|
$ |
4,999,065 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin, fully tax
equivalent basis (non-GAAP) (annualized) |
|
|
3.60 |
% |
|
|
3.79 |
% |
|
|
3.73 |
% |
|
|
3.69 |
% |
|
|
3.61 |
% |
CNB
FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars
in thousands, except per share data)Reconciliation of Non-GAAP
Financial Measures |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Calculation of PPNR
(non-GAAP): (1) |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
47,260 |
|
|
$ |
47,639 |
|
|
$ |
46,301 |
|
|
$ |
94,899 |
|
|
$ |
88,918 |
|
Add: Non-interest income |
|
|
8,293 |
|
|
|
8,042 |
|
|
|
8,146 |
|
|
|
16,335 |
|
|
|
17,800 |
|
Less: Non-interest
expense |
|
|
35,988 |
|
|
|
33,990 |
|
|
|
32,609 |
|
|
|
69,978 |
|
|
|
64,501 |
|
PPNR (non-GAAP) |
|
$ |
19,565 |
|
|
$ |
21,691 |
|
|
$ |
21,838 |
|
|
$ |
41,256 |
|
|
$ |
42,217 |
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Calculation of
efficiency ratio: |
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
35,988 |
|
|
$ |
33,990 |
|
|
$ |
32,609 |
|
|
$ |
69,978 |
|
|
$ |
64,501 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
8,293 |
|
|
$ |
8,042 |
|
|
$ |
8,146 |
|
|
$ |
16,335 |
|
|
$ |
17,800 |
|
Net interest income |
|
|
47,260 |
|
|
|
47,639 |
|
|
|
46,301 |
|
|
|
94,899 |
|
|
|
88,918 |
|
Total revenue |
|
$ |
55,553 |
|
|
$ |
55,681 |
|
|
$ |
54,447 |
|
|
$ |
111,234 |
|
|
$ |
106,718 |
|
Efficiency ratio |
|
|
64.78 |
% |
|
|
61.04 |
% |
|
|
59.89 |
% |
|
|
62.91 |
% |
|
|
60.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
efficiency ratio (fully tax equivalent basis)
(non-GAAP): |
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
35,988 |
|
|
$ |
33,990 |
|
|
$ |
32,609 |
|
|
$ |
69,978 |
|
|
$ |
64,501 |
|
Less: core deposit intangible
amortization |
|
|
23 |
|
|
|
23 |
|
|
|
25 |
|
|
|
45 |
|
|
|
50 |
|
Adjusted non-interest expense (non-GAAP) |
|
$ |
35,965 |
|
|
$ |
33,967 |
|
|
$ |
32,584 |
|
|
$ |
69,933 |
|
|
$ |
64,451 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
8,293 |
|
|
$ |
8,042 |
|
|
$ |
8,146 |
|
|
$ |
16,335 |
|
|
$ |
17,800 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
47,260 |
|
|
$ |
47,639 |
|
|
$ |
46,301 |
|
|
$ |
94,899 |
|
|
$ |
88,918 |
|
Less: tax exempt investment
and loan income, net of TEFRA (non-GAAP) |
|
|
1,349 |
|
|
|
1,318 |
|
|
|
1,208 |
|
|
|
2,667 |
|
|
|
2,535 |
|
Add: tax exempt investment and
loan income (fully tax equivalent basis) (non-GAAP) |
|
|
1,906 |
|
|
|
1,806 |
|
|
|
1,549 |
|
|
|
3,713 |
|
|
|
3,252 |
|
Adjusted net interest income (fully tax equivalent basis)
(non-GAAP) |
|
|
47,817 |
|
|
|
48,127 |
|
|
|
46,642 |
|
|
|
95,945 |
|
|
|
89,635 |
|
Adjusted net revenue (fully tax equivalent basis) (non-GAAP) |
|
$ |
56,110 |
|
|
$ |
56,169 |
|
|
$ |
54,788 |
|
|
$ |
112,280 |
|
|
$ |
107,435 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (fully tax
equivalent basis) (non-GAAP) |
|
|
64.10 |
% |
|
|
60.47 |
% |
|
|
59.47 |
% |
|
|
62.28 |
% |
|
|
59.99 |
% |
CNB
FINANCIAL CORPORATIONCONSOLIDATED FINANCIAL DATAUnaudited(dollars
in thousands, except per share data)Reconciliation of Non-GAAP
Financial Measures |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Calculation of return
on average tangible common equity (non-GAAP): |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,827 |
|
|
$ |
16,489 |
|
|
$ |
15,438 |
|
|
$ |
30,316 |
|
|
$ |
30,683 |
|
Less: preferred stock
dividends |
|
|
1,075 |
|
|
|
1,075 |
|
|
|
1,075 |
|
|
|
2,150 |
|
|
|
2,150 |
|
Net income available to common shareholders |
|
$ |
12,752 |
|
|
$ |
15,414 |
|
|
$ |
14,363 |
|
|
$ |
28,166 |
|
|
$ |
28,533 |
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
|
$ |
550,490 |
|
|
$ |
530,806 |
|
|
$ |
425,450 |
|
|
$ |
543,039 |
|
|
$ |
433,753 |
|
Less: average goodwill &
intangibles |
|
|
44,208 |
|
|
|
44,208 |
|
|
|
44,175 |
|
|
|
44,208 |
|
|
|
44,188 |
|
Less: average preferred
equity |
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Tangible common shareholders' equity (non-GAAP) |
|
$ |
448,497 |
|
|
$ |
428,813 |
|
|
$ |
323,490 |
|
|
$ |
441,046 |
|
|
$ |
331,780 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity
(GAAP) (annualized) |
|
|
10.07 |
% |
|
|
12.60 |
% |
|
|
14.55 |
% |
|
|
11.26 |
% |
|
|
14.26 |
% |
Return on average common
equity (GAAP) (annualized) |
|
|
9.29 |
% |
|
|
11.78 |
% |
|
|
13.54 |
% |
|
|
10.46 |
% |
|
|
13.27 |
% |
Return on average tangible
common equity (non-GAAP) (annualized) |
|
|
11.40 |
% |
|
|
14.58 |
% |
|
|
17.81 |
% |
|
|
12.88 |
% |
|
|
17.34 |
% |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Calculation of
non-interest income excluding net realized gains on
available-for-sale securities (non-GAAP): |
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
$ |
8,293 |
|
|
$ |
8,042 |
|
|
$ |
8,146 |
|
|
$ |
16,335 |
|
|
$ |
17,800 |
|
Less: net realized gains on
available-for-sale securities |
|
|
30 |
|
|
|
22 |
|
|
|
0 |
|
|
|
52 |
|
|
|
651 |
|
Adjusted non-interest income
(non-GAAP) |
|
$ |
8,263 |
|
|
$ |
8,020 |
|
|
$ |
8,146 |
|
|
$ |
16,283 |
|
|
$ |
17,149 |
|
Contact: Tito L. Lima
Treasurer
(814) 765-9621
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