CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ:
CCNE), the parent company of CNB Bank, today announced its earnings
for the three months ended March 31, 2023, and disclosed quarterly
growth in total deposits, loans, and assets.
Executive Summary
- Net income available to common
shareholders ("earnings") was $15.4 million, or $0.73 per diluted
share, for the three months ended March 31, 2023, reflecting a
sequential quarterly increase compared to earnings of $14.8
million, or $0.70 per diluted share, for the three months ended
December 31, 2022. The Corporation’s prior year earnings for the
three months ended March 31, 2022 were $14.2 million, or $0.84 per
diluted share. The decrease in diluted earnings per share comparing
the quarter ended March 31, 2023 to the quarter ended March 31,
2022 was primarily due to 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.
- At March 31, 2023, total deposits
were $4.8 billion, reflecting an increase of $131.7 million, or
2.8% (11.6% annualized), from December 31, 2022. 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 0.5% (1.8% annualized) from December 31,
2022. Additional deposit and liquidity profile details were as
follows:
- At March 31, 2023, the total
estimated uninsured deposits for CNB Bank were approximately $1.6
billion, or approximately 33% of total CNB Bank deposits; However,
when excluding $101.1 million of affiliate company deposits and
$462.2 million of pledged-investment collateralized deposits, the
adjusted amount and percentage of total estimated uninsured
deposits was approximately $1.1 billion, or approximately 22% of
total CNB Bank deposits as of March 31, 2023.
- At December 31, 2022, the total
estimated uninsured deposits for CNB Bank were approximately $1.9
billion, or approximately 39% of total CNB Bank deposits. When
excluding affiliate company deposits of $143.1 million and
pledged-investment collateralized deposits of $396.2 million, the
adjusted amount and percentage of total estimated uninsured
deposits was approximately $1.3 billion, or approximately 28% of
total CNB Bank deposits as of December 31, 2022.
- Total deposits for the Corporation increased approximately
$90.4 million from March 9, 2023, when the FDIC takeover of Silicon
Valley Bank was announced, to March 31, 2023.
- At March 31, 2023, the average deposit balance per account for
CNB Bank was approximately $31 thousand.
- At March 31, 2023, the Corporation had $132.7 million of cash
equivalents held in CNB Bank’s interest-bearing deposit account at
the Federal Reserve. These excess funds, when combined with
available borrowing capacity of approximately $2.1 billion from the
Federal Home Bank of Pittsburgh ("FHLB"), 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 2.1 times the
adjusted estimated uninsured deposit balances discussed above.
- At March 31, 2023, short-term
borrowings from the FHLB totaled approximately $102.1 million,
compared to borrowings of $132.4 million at December 31, 2022. The
decrease in short-term borrowings resulted from (i) a $5.3 million
reduction in investment balances as a result of the proceeds of
investment prepayments and investment sales being used to reduce
borrowings, and (ii) excess funds from the first quarter growth in
deposits outpacing the growth in loan balances for the same period
also being used to reduce borrowings.
- As of March 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
the Corporation has not borrowed from the BTFP, to date, due to the
general stability in CNB's deposit funding.
- At March 31, 2023, the
Corporation's net unrealized losses on available-for-sale and
held-to-maturity securities totaled approximately $84.9 million, or
15.5% of total shareholders' equity, compared to $99.0 million, or
18.6% of total shareholders' equity at December 31, 2022. The
improvement in unrealized losses was primarily due to lower
interest rates. In addition, all regulatory capital ratios for the
Corporation would exceed regulatory “well-capitalized” levels as of
March 31, 2023 and December 31, 2022 if the net unrealized losses
were fully recognized. Additionally, the Corporation maintains
$100.5 million of funds at its holding company, well in excess of
the $84.9 in the unrealized losses on investments, as an
immediately available source of contingent capital for CNB
Bank.
- At March 31, 2023, loans, excluding
the balances of (i) syndicated loans, and (ii) Paycheck Protection
Program ("PPP") loans, net of PPP-related fees (such loans being
referred to as the "PPP-related loans"), totaled $4.2 billion,
representing an increase of $34.7 million, or 0.8% (3.4%
annualized), from the same adjusted total loans measure as of
December 31, 2022. Loan growth was experienced in the Corporation's
Columbus, Buffalo and Southwest Virginia markets, combined with
growth in the portfolio related to CNB Bank’s Private Banking
division.
- At March 31, 2023, the
Corporation's balance sheet reflected a decrease in syndicated
lending balances of $8.6 million compared to December 31, 2022. The
syndicated loan portfolio totaled $148.1 million, or 3.4% of total
loans, excluding PPP-related loans, at March 31, 2023, compared to
$156.6 million, or 3.7% of total loans, excluding PPP-related
loans, at December 31, 2022.
- Total nonperforming assets were
approximately $23.7 million, or 0.42% of total assets, as of March
31, 2023, compared to $23.5 million, or 0.43% of total assets, as
of December 31, 2022, and $20.1 million, or 0.38% of total assets,
as of March 31, 2022. For the three months ended March 31, 2023,
net loan charge-offs were $686 thousand, or 0.07% (annualized) of
average total loans and loans held for sale, compared to $821
thousand, or 0.08% (annualized) of average total loans and loans
held for sale, during the three months ended December 31, 2022, and
$528 thousand, or 0.06% (annualized) of average total loans and
loans held for sale, during the three months ended March 31,
2022.
- Pre-provision net revenue ("PPNR"),
a non-GAAP measure, was $21.7 million for the three months ended
March 31, 2023, compared to $22.8 million and $20.4 million for the
three months ended December 31, 2022 and March 31, 2022,
respectively.1 The decrease in PPNR for the three months ended
March 31, 2023 compared to the three months ended December 31,
2022, was driven primarily by an increase in deposit interest
expense and lower non-interest income, partially offset by a
decrease in quarterly incentive compensation accruals and a
decrease in quarterly technology expenses resulting from reductions
in fees on application implementations. The increase in PPNR for
the three months ended March 31, 2023 compared to the three months
ended March 31, 2022, was primarily driven by growth in loans and
expansion of the Corporation's net interest margin, partially
offset by a decrease in non-interest income as a result of lower
pass-through income from small business investment companies
("SBICs") and increased year-over-year technology expenses due to
investments in applications aimed at enhancing both customer
experience and expanding service delivery channels.
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, stated,
"Our quarterly results reflect the sustainability of our earnings,
and our quarterly growth and financial position reflects the sound
asset quality profile and continued effectiveness of our capital
and liquidity management. The growth we experienced in both loans
and deposits, especially highlighted by a quarterly increase in
treasury management relationships and number of households,
reflects the relevant connectivity of our banking and wealth
management professionals to commercial, retail, private banking,
and institutional customers across our footprint.
As we discussed among our team and in our
regular conversations with our customers, we are historically a
bank where customers in our markets turn to for safety. CNB’s loans
and deposits are primarily sourced from and based on our local
customers and our local communities. CNB has no significant
exposure to tech-related businesses or start-up businesses, and no
exposure to either crypto-related businesses or crypto currencies
and investments. Additionally, CNB Bank’s loans and deposits are
diversified in terms of types (consumer, small commercial, larger
commercial, and private banking) with known customers in
well-established industries across our diversified markets.
With both strong capital reserves and liquidity
resources, and the continued application of our sound and
conservative underwriting practices, we are well positioned to both
manage through market stress periods, and take advantage of growth
and relationship expansion opportunities that may arise.”
Other Balance Sheet
Highlights
- Book value per common share was
$23.14 at March 31, 2023, reflecting a favorable increase compared
to $22.39 and $21.83 at December 31, 2022 and March 31, 2022,
respectively. Tangible book value per common share, a non-GAAP
measure, was $21.05 as of March 31, 2023, also reflecting a
favorable increase compared to $20.30 and $19.21 as of December 31,
2022 and March 31, 2022, respectively.1 The changes in book value
per common share and tangible book value per common share compared
to December 31, 2022, were primarily due to (ii) an $11.7 million
increase in retained earnings, and (ii) a $5.8 million improvement
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.
Performance Ratios
- Annualized return on average equity
was 12.60% for the three months ended March 31, 2023, compared to
12.45% and 13.99% for the three months ended December 31, 2022 and
March 31, 2022, respectively.
- Annualized return on average
tangible common equity, a non-GAAP measure, was 14.58% for the
three months ended March 31, 2023, compared to 14.54% and 16.91%
for the three months ended December 31, 2022 and March 31, 2022,
respectively.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 months ended March
31, 2023 and December 31, 2022 and the related comparison to March
31, 2022.
- The Corporation's efficiency ratio
was 61.04% for the three months ended March 31, 2023, compared to
61.87% and 61.01% for the three months ended December 31, 2022 and
March 31, 2022, respectively. The efficiency ratio on a fully
tax-equivalent basis, a non-GAAP ratio, was 60.47% for the three
months ended March 31, 2023, compared to 61.40% and 60.53% for the
three months ended December 31, 2022 and March 31, 2022,
respectively.1 The decrease for the three months ended March 31,
2023 compared to December 31, 2022, was primarily a result of lower
incentive compensation accruals and lower technology expenses.
Revenue
- Total revenue (net interest income
plus non-interest income) was $55.7 million for the three months
ended March 31, 2023, compared to $59.8 million and $52.3 million
for the three months ended December 31, 2022 and March 31, 2022,
respectively.
- Net interest income was $47.6
million for the three months ended March 31, 2023, compared to
$50.8 million and $42.6 million, for the three months ended
December 31, 2022 and March, 31, 2022, respectively. The decrease
when comparing the first quarter of 2023 to the three months ended
December 31, 2022 of $3.2 million, or 6.3%, 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
growth and retention, and an increase in the average balance of
short-term borrowings through the FHLB. The increase in net
interest income when comparing the first quarter of 2023 to the
three months ended March 31, 2022 of $5.0 million, or 11.8%, was
primarily a result of loan growth and the benefits of the impact of
rising interest rates resulting in greater income on variable-rate
loans, coupled with net growth in the Corporation's investment
portfolio.
- Net interest margin was 3.81%,
4.07% and 3.47% for the three months ended March 31, 2023, December
31, 2022 and March 31, 2022, respectively. Net interest margin on a
fully tax-equivalent basis, a non-GAAP measure, was 3.79%, 4.03%
and 3.48%, for the three months ended March 31, 2023, December 31,
2022 and March 31, 2022, respectively.1
- The yield on earning assets of
5.29% for the three months ended March 31, 2023 increased 34 basis
points and 151 basis points from December 31, 2022 and March 31,
2022, respectively, primarily as a result of loan growth and the
net benefit of higher interest rates.
- The cost of interest-bearing
liabilities of 1.94% for the three months ended March 31, 2023
increased 74 basis and 157 basis points from December 31, 2022 and
March 31, 2022, respectively, 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 $8.0
million for the three months ended March 31, 2023 compared to $9.0
million and $9.7 million for the three months ended December 31,
2022 and March 31, 2022, respectively. During the three months
ended March 31, 2023, Wealth and Asset Management fees increased
$100 thousand, or 5.9%, compared to the three months ended December
31, 2022, as the Corporation benefited from an increased number of
wealth management relationships. Other notable changes compared to
the fourth quarter of 2022 included seasonally lower other service
charges and fees, unrealized losses on equity securities and a
decrease in gains on recovery from acquired loans. The decrease in
non-interest income when compared to the three months ended March
31, 2022 of $1.6 million, or 16.7%, was due primarily to lower
pass-through income from SBICs.
Non-Interest Expense
- For the three months ended March
31, 2023, total non-interest expense was $34.0 million, compared to
$37.0 million and $31.9 million for the three months ended December
31, 2022 and March 31, 2022, respectively. The decrease of $3.0
million, or 8.2%, from the three months ended December 31, 2022,
was primarily a result of a decrease in the incentive compensation
accruals and lower technology expense, combined with seasonally
lower advertising expense. The increase of $2.1 million, or 6.6%,
from the three months ended March 31, 2022, was primarily a result
of higher technology expenses due to year-over-year investments in
applications aimed at enhancing both customer experience and
expanding service delivery channels.
Income Taxes
- Income tax expense was $3.9
million, representing a 19.2% effective tax rate, compared to $4.0
million, representing a 20.1% effective tax rate, and $3.5 million,
representing an 18.6% effective tax rate, for the three months
ended March 31, 2023, December 31, 2022 and March 31, 2022,
respectively.
Asset Quality
- Total nonperforming assets were
$23.7 million, or 0.42% of total assets, as of March 31, 2023,
compared to $23.5 million, or 0.43% of total assets, as of December
31, 2022 and $20.1 million, or 0.38% of total assets, as of March
31, 2022.
- The allowance for credit losses
measured as a percentage of total loans was 1.02% as of March 31,
2023 and December 31, 2022 and 1.01% as of March 31, 2022. In
addition, the allowance for credit losses as a percentage of
nonaccrual loans was 209.5% as of March 31, 2023, compared to
207.0% and 196.7% as of December 31, 2022 and March 31, 2022,
respectively.
- The provision for credit losses was
$1.3 million for the three months ended March 31, 2023, compared to
$3.0 million and $1.6 million for the three months ended December
31, 2022 and March 31, 2022, respectively. Included in the
provision for credit losses for the three months ended March 31,
2023 was $59 thousand expense related to the allowance for unfunded
commitments compared to a benefit of $38 thousand for the three
months ended December 31, 2022 and $586 thousand of expense for the
three months ended March 31, 2022. The reduction in the provision
expense of $1.7 million from the three months ended December 31,
2022 was primarily a result of lower loan portfolio growth in the
first quarter of 2023 compared to the fourth quarter of 2022, while
the overall nonperforming loan profile remained relatively
consistent quarter over quarter.
- For the three months ended March
31, 2023, net loan charge-offs were $686 thousand, or 0.07%
(annualized) of average total loans including loans held for sale,
compared to $821 thousand, or 0.08% (annualized), during the three
months ended December 31, 2022 and $528 thousand, or 0.06%
(annualized), during the three months ended March 31, 2022.
Capital
- As of March 31, 2023, the
Corporation’s total shareholders’ equity was $546.4 million,
representing an increase of $15.7 million, or 3.0%, from December
31, 2022, 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), and a decrease
in accumulated other comprehensive loss 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.
- Regulatory capital ratios for the
Corporation continue to exceed regulatory “well-capitalized” levels
as of March 31, 2023.
- As of March 31, 2023, the
Corporation’s ratio of common shareholders' equity to total assets
was 8.75% compared to 8.64% at December 31, 2022. As of March 31,
2023, the Corporation’s ratio of tangible common equity to tangible
assets, a non-GAAP measure, was 8.02% compared to 7.90% at December
31, 2022. This increase was the result of the increase in retained
earnings combined with a decrease in accumulated other
comprehensive loss during the three months ended December 31,
2022.1
About CNB Financial
Corporation
CNB Financial Corporation is a financial holding
company with consolidated assets of approximately $5.6 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, three loan
production offices, one drive-up office, one mobile office and 48
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. 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 |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Income Statement |
|
|
|
|
|
Interest and fees on loans |
$ |
62,327 |
|
|
$ |
57,781 |
|
|
$ |
41,150 |
|
Processing fees on PPP loans |
|
1 |
|
|
|
19 |
|
|
|
1,237 |
|
Interest and dividends on securities and cash and cash
equivalents |
|
4,312 |
|
|
|
4,645 |
|
|
|
3,867 |
|
Interest expense |
|
(19,001 |
) |
|
|
(11,612 |
) |
|
|
(3,637 |
) |
Net interest income |
|
47,639 |
|
|
|
50,833 |
|
|
|
42,617 |
|
Provision for credit losses |
|
1,290 |
|
|
|
2,950 |
|
|
|
1,643 |
|
Net interest income after provision for credit losses |
|
46,349 |
|
|
|
47,883 |
|
|
|
40,974 |
|
Non-interest income |
|
|
|
|
|
Wealth and asset management fees |
|
1,817 |
|
|
|
1,716 |
|
|
|
1,783 |
|
Service charges on deposit accounts |
|
1,795 |
|
|
|
1,806 |
|
|
|
1,757 |
|
Other service charges and fees |
|
631 |
|
|
|
943 |
|
|
|
655 |
|
Net realized gains on available-for-sale securities |
|
22 |
|
|
|
0 |
|
|
|
651 |
|
Net realized and unrealized gains (losses) on equity
securities |
|
(286 |
) |
|
|
284 |
|
|
|
(394 |
) |
Mortgage banking |
|
168 |
|
|
|
172 |
|
|
|
475 |
|
Bank owned life insurance |
|
764 |
|
|
|
655 |
|
|
|
694 |
|
Card processing and interchange income |
|
2,059 |
|
|
|
2,021 |
|
|
|
1,809 |
|
Other non-interest income |
|
1,072 |
|
|
|
1,410 |
|
|
|
2,224 |
|
Total non-interest income |
|
8,042 |
|
|
|
9,007 |
|
|
|
9,654 |
|
Non-interest expenses |
|
|
|
|
|
Salaries and benefits |
|
17,045 |
|
|
|
18,800 |
|
|
|
16,988 |
|
Net occupancy expense of premises |
|
3,566 |
|
|
|
3,358 |
|
|
|
3,230 |
|
Technology expense |
|
4,258 |
|
|
|
5,093 |
|
|
|
3,372 |
|
Advertising expense |
|
544 |
|
|
|
1,021 |
|
|
|
620 |
|
State and local taxes |
|
1,050 |
|
|
|
957 |
|
|
|
1,048 |
|
Legal, professional, and examination fees |
|
845 |
|
|
|
1,141 |
|
|
|
837 |
|
FDIC insurance premiums |
|
873 |
|
|
|
654 |
|
|
|
723 |
|
Card processing and interchange expenses |
|
1,490 |
|
|
|
1,315 |
|
|
|
1,029 |
|
Other non-interest expense |
|
4,319 |
|
|
|
4,682 |
|
|
|
4,045 |
|
Total non-interest expenses |
|
33,990 |
|
|
|
37,021 |
|
|
|
31,892 |
|
Income before income taxes |
|
20,401 |
|
|
|
19,869 |
|
|
|
18,736 |
|
Income tax expense |
|
3,912 |
|
|
|
3,989 |
|
|
|
3,491 |
|
Net income |
|
16,489 |
|
|
|
15,880 |
|
|
|
15,245 |
|
Preferred stock dividends |
|
1,075 |
|
|
|
1,076 |
|
|
|
1,075 |
|
Net income available to common shareholders |
$ |
15,414 |
|
|
$ |
14,804 |
|
|
$ |
14,170 |
|
|
|
|
|
|
|
Ending shares outstanding |
|
21,116,928 |
|
|
|
21,121,346 |
|
|
|
16,860,698 |
|
Average diluted common shares outstanding |
|
21,077,531 |
|
|
|
21,092,770 |
|
|
|
16,844,106 |
|
Diluted earnings per common share |
$ |
0.73 |
|
|
$ |
0.70 |
|
|
$ |
0.84 |
|
Cash dividends per common share |
$ |
0.175 |
|
|
$ |
0.175 |
|
|
$ |
0.175 |
|
Dividend payout ratio |
|
24 |
% |
|
|
25 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Average Balances |
|
|
|
|
|
Total loans and loans held for sale |
$ |
4,257,033 |
|
|
$ |
4,123,857 |
|
|
$ |
3,668,716 |
|
Investment securities |
|
794,768 |
|
|
|
787,259 |
|
|
|
805,118 |
|
Total earning assets |
|
5,068,689 |
|
|
|
4,959,490 |
|
|
|
4,982,296 |
|
Total assets |
|
5,426,320 |
|
|
|
5,311,790 |
|
|
|
5,291,353 |
|
Noninterest-bearing deposits |
|
837,734 |
|
|
|
874,131 |
|
|
|
804,964 |
|
Interest-bearing deposits |
|
3,770,150 |
|
|
|
3,714,040 |
|
|
|
3,873,910 |
|
Shareholders' equity |
|
530,806 |
|
|
|
505,992 |
|
|
|
441,810 |
|
Tangible common shareholders' equity (non-GAAP) (1) |
|
428,813 |
|
|
|
404,079 |
|
|
|
339,825 |
|
|
|
|
|
|
|
Average Yields (annualized) |
|
|
|
|
|
Total loans and loans held for sale |
|
5.96 |
% |
|
|
5.58 |
% |
|
|
4.72 |
% |
Investment securities |
|
1.95 |
% |
|
|
1.90 |
% |
|
|
1.82 |
% |
Total earning assets |
|
5.29 |
% |
|
|
4.95 |
% |
|
|
3.78 |
% |
Interest-bearing deposits |
|
1.80 |
% |
|
|
1.09 |
% |
|
|
0.28 |
% |
Interest-bearing liabilities |
|
1.94 |
% |
|
|
1.20 |
% |
|
|
0.37 |
% |
|
|
|
|
|
|
Performance Ratios (annualized) |
|
|
|
|
|
Return on average assets |
|
1.23 |
% |
|
|
1.19 |
% |
|
|
1.17 |
% |
Return on average equity |
|
12.60 |
% |
|
|
12.45 |
% |
|
|
13.99 |
% |
Return on average tangible common equity (non-GAAP) (1) |
|
14.58 |
% |
|
|
14.54 |
% |
|
|
16.91 |
% |
Net interest margin, fully tax equivalent basis (non-GAAP) (1) |
|
3.79 |
% |
|
|
4.03 |
% |
|
|
3.48 |
% |
Efficiency Ratio, fully tax equivalent basis (non-GAAP) (1) |
|
60.47 |
% |
|
|
61.40 |
% |
|
|
60.53 |
% |
|
|
|
|
|
|
Net Loan Charge-Offs |
|
|
|
|
|
CNB Bank net loan charge-offs |
$ |
195 |
|
|
$ |
437 |
|
|
$ |
158 |
|
Holiday Financial net loan charge-offs |
|
491 |
|
|
|
384 |
|
|
|
370 |
|
Total Corporation net loan charge-offs |
$ |
686 |
|
|
$ |
821 |
|
|
$ |
528 |
|
Annualized net loan charge-offs / average total loans and loans
held for sale |
|
0.07 |
% |
|
|
0.08 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Ending Balance Sheet |
|
|
|
|
|
Cash and due from banks |
$ |
51,206 |
|
|
$ |
58,884 |
|
|
$ |
47,137 |
|
Interest-bearing deposits with Federal Reserve |
|
132,696 |
|
|
|
43,401 |
|
|
|
352,901 |
|
Interest-bearing deposits with other financial institutions |
|
4,691 |
|
|
|
4,000 |
|
|
|
4,936 |
|
Total cash and cash equivalents |
|
188,593 |
|
|
|
106,285 |
|
|
|
404,974 |
|
Debt securities available-for-sale, at fair value |
|
368,607 |
|
|
|
371,409 |
|
|
|
539,562 |
|
Debt securities held-to-maturity, at amortized cost |
|
402,300 |
|
|
|
404,765 |
|
|
|
307,597 |
|
Equity securities |
|
9,416 |
|
|
|
9,615 |
|
|
|
10,092 |
|
Loans held for sale |
|
448 |
|
|
|
231 |
|
|
|
1,563 |
|
Loans receivable |
|
|
|
|
|
PPP loans, net of deferred processing fees |
|
144 |
|
|
|
159 |
|
|
|
18,416 |
|
Syndicated loans |
|
148,085 |
|
|
|
156,649 |
|
|
|
147,085 |
|
Loans |
|
4,153,068 |
|
|
|
4,118,370 |
|
|
|
3,590,862 |
|
Total loans receivable |
|
4,301,297 |
|
|
|
4,275,178 |
|
|
|
3,756,363 |
|
Less: allowance for credit losses |
|
(43,981 |
) |
|
|
(43,436 |
) |
|
|
(38,117 |
) |
Net loans receivable |
|
4,257,316 |
|
|
|
4,231,742 |
|
|
|
3,718,246 |
|
Goodwill and other intangibles |
|
43,874 |
|
|
|
43,749 |
|
|
|
43,749 |
|
Core deposit intangible |
|
342 |
|
|
|
364 |
|
|
|
435 |
|
Other assets |
|
312,438 |
|
|
|
307,019 |
|
|
|
257,782 |
|
Total Assets |
$ |
5,583,334 |
|
|
$ |
5,475,179 |
|
|
$ |
5,284,000 |
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
810,623 |
|
|
$ |
898,437 |
|
|
$ |
817,611 |
|
Interest-bearing demand deposits |
|
958,756 |
|
|
|
1,007,202 |
|
|
|
1,060,951 |
|
Savings |
|
2,442,903 |
|
|
|
2,270,337 |
|
|
|
2,474,362 |
|
Certificates of deposit |
|
541,847 |
|
|
|
446,461 |
|
|
|
337,939 |
|
Total deposits |
|
4,754,129 |
|
|
|
4,622,437 |
|
|
|
4,690,863 |
|
Short-term borrowings |
|
102,083 |
|
|
|
132,396 |
|
|
|
0 |
|
Subordinated debentures |
|
20,620 |
|
|
|
20,620 |
|
|
|
20,620 |
|
Subordinated notes, net of issuance costs |
|
84,040 |
|
|
|
83,964 |
|
|
|
83,736 |
|
Other liabilities |
|
76,035 |
|
|
|
85,000 |
|
|
|
62,846 |
|
Total liabilities |
|
5,036,907 |
|
|
|
4,944,417 |
|
|
|
4,858,065 |
|
Common stock |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Preferred stock |
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Additional paid in capital |
|
219,561 |
|
|
|
221,553 |
|
|
|
126,703 |
|
Retained earnings |
|
318,629 |
|
|
|
306,911 |
|
|
|
271,792 |
|
Treasury stock |
|
(2,867 |
) |
|
|
(2,967 |
) |
|
|
(2,998 |
) |
Accumulated other comprehensive loss |
|
(46,681 |
) |
|
|
(52,520 |
) |
|
|
(27,347 |
) |
Total shareholders' equity |
|
546,427 |
|
|
|
530,762 |
|
|
|
425,935 |
|
Total liabilities and shareholders' equity |
$ |
5,583,334 |
|
|
$ |
5,475,179 |
|
|
$ |
5,284,000 |
|
|
|
|
|
|
|
Book value per common share |
$ |
23.14 |
|
|
$ |
22.39 |
|
|
$ |
21.83 |
|
Tangible book value per common share (non-GAAP) (1) |
$ |
21.05 |
|
|
$ |
20.30 |
|
|
$ |
19.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Capital Ratios |
|
|
|
|
|
Tangible common equity / tangible assets (non-GAAP) (1) |
|
8.02 |
% |
|
|
7.90 |
% |
|
|
6.18 |
% |
Tier 1 leverage ratio (2) |
|
10.66 |
% |
|
|
10.74 |
% |
|
|
8.30 |
% |
Common equity tier 1 ratio (2) |
|
11.35 |
% |
|
|
11.42 |
% |
|
|
9.37 |
% |
Tier 1 risk-based ratio (2) |
|
13.13 |
% |
|
|
13.24 |
% |
|
|
11.40 |
% |
Total risk-based ratio (2) |
|
15.97 |
% |
|
|
16.08 |
% |
|
|
14.44 |
% |
|
|
|
|
|
|
Asset Quality Detail |
|
|
|
|
|
Nonaccrual loans (3) |
$ |
20,989 |
|
|
$ |
20,986 |
|
|
$ |
19,378 |
|
Loans 90+ days past due and accruing |
|
1,075 |
|
|
|
1,121 |
|
|
|
52 |
|
Total nonperforming loans |
|
22,064 |
|
|
|
22,107 |
|
|
|
19,430 |
|
Other real estate owned |
|
1,600 |
|
|
|
1,439 |
|
|
|
689 |
|
Total nonperforming assets |
$ |
23,664 |
|
|
$ |
23,546 |
|
|
$ |
20,119 |
|
|
|
|
|
|
|
Modifications to Borrowers Experiencing Financial
Difficulty ("BEFD") (3) |
|
|
|
|
|
Performing modifications to BEFD |
$ |
5,996 |
|
|
$ |
6,006 |
|
|
$ |
10,702 |
|
Nonperforming modifications to BEFD (3) |
|
9,763 |
|
|
|
6,377 |
|
|
|
7,379 |
|
Total modifications to BEFD |
$ |
15,759 |
|
|
$ |
12,383 |
|
|
$ |
18,081 |
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
Nonperforming assets / Total loans + OREO |
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.54 |
% |
Nonperforming assets / Total assets |
|
0.42 |
% |
|
|
0.43 |
% |
|
|
0.38 |
% |
Ratio of allowance for credit losses on loans to nonaccrual
loans |
|
209.54 |
% |
|
|
206.98 |
% |
|
|
196.70 |
% |
Allowance for credit losses / Total loans |
|
1.02 |
% |
|
|
1.02 |
% |
|
|
1.01 |
% |
|
|
|
|
|
|
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 March 31, 2023 are estimated pending final
regulatory filings. |
(3) Effective for January 1, 2023, the Corporation adopted
prospectively Accounting Standard Update 2022-02, which eliminated
recognition and measurement guidance of certain loans with changes
to the original terms, known as troubled debt restructurings and
introduced modifications of receivables made to borrowers
experiencing financial difficulty. The periods ended December 31,
2022 and March 31, 2022 are presented utilizing troubled debt
restructuring guidance. Modifications to borrowers experiencing
financial difficulty and troubled debt restructurings that are
nonaccrual are also included in the balance of nonaccrual loans in
the previous table. |
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
|
Average Balances, Income and Interest Rates on a Taxable Equivalent
Basis |
|
For the Three Months Ended, |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
|
AverageBalance |
|
AnnualRate |
|
InterestInc./Exp. |
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (1) (4) |
$ |
748,171 |
|
|
1.90 |
% |
|
$ |
3,766 |
|
$ |
744,979 |
|
|
1.86 |
% |
|
$ |
3,786 |
|
$ |
759,601 |
|
|
1.76 |
% |
|
$ |
3,340 |
Tax-exempt (1) (2) (4) |
|
33,390 |
|
|
2.67 |
% |
|
|
234 |
|
|
32,884 |
|
|
2.74 |
% |
|
|
250 |
|
|
37,586 |
|
|
3.01 |
% |
|
|
274 |
Equity securities (1) (2) |
|
13,207 |
|
|
2.86 |
% |
|
|
93 |
|
|
9,396 |
|
|
2.24 |
% |
|
|
53 |
|
|
7,931 |
|
|
2.15 |
% |
|
|
42 |
Total securities (4) |
|
794,768 |
|
|
1.95 |
% |
|
|
4,093 |
|
|
787,259 |
|
|
1.90 |
% |
|
|
4,089 |
|
|
805,118 |
|
|
1.82 |
% |
|
|
3,656 |
Loans receivable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (2) (3) |
|
1,508,584 |
|
|
6.29 |
% |
|
|
23,388 |
|
|
1,489,416 |
|
|
5.76 |
% |
|
|
21,641 |
|
|
1,357,133 |
|
|
4.69 |
% |
|
|
15,697 |
Mortgage and loans held for sale (2) (3) |
|
2,627,728 |
|
|
5.51 |
% |
|
|
35,731 |
|
|
2,515,400 |
|
|
5.22 |
% |
|
|
33,112 |
|
|
2,204,497 |
|
|
4.47 |
% |
|
|
24,290 |
Consumer (3) |
|
120,721 |
|
|
11.55 |
% |
|
|
3,434 |
|
|
119,041 |
|
|
10.93 |
% |
|
|
3,280 |
|
|
107,086 |
|
|
10.15 |
% |
|
|
2,679 |
Total loans receivable (3) |
|
4,257,033 |
|
|
5.96 |
% |
|
|
62,553 |
|
|
4,123,857 |
|
|
5.58 |
% |
|
|
58,033 |
|
|
3,668,716 |
|
|
47.72 |
% |
|
|
42,666 |
Interest-bearing deposits with the Federal Reserve and other
financial institutions |
|
16,888 |
|
|
6.34 |
% |
|
|
264 |
|
|
48,374 |
|
|
4.96 |
% |
|
|
605 |
|
|
508,462 |
|
|
0.17 |
% |
|
|
213 |
Total earning assets |
|
5,068,689 |
|
|
5.29 |
% |
|
$ |
66,910 |
|
|
4,959,490 |
|
|
4.95 |
% |
|
$ |
62,727 |
|
|
4,982,296 |
|
|
3.78 |
% |
|
$ |
46,535 |
Noninterest-bearing assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
52,323 |
|
|
|
|
|
|
|
54,791 |
|
|
|
|
|
|
|
49,869 |
|
|
|
|
|
Premises and equipment |
|
102,821 |
|
|
|
|
|
|
|
96,804 |
|
|
|
|
|
|
|
83,722 |
|
|
|
|
|
Other assets |
|
245,914 |
|
|
|
|
|
|
|
242,585 |
|
|
|
|
|
|
|
213,501 |
|
|
|
|
|
Allowance for credit losses |
|
(43,427 |
) |
|
|
|
|
|
|
(41,880 |
) |
|
|
|
|
|
|
(38,035 |
) |
|
|
|
|
Total non interest-bearing assets |
|
357,631 |
|
|
|
|
|
|
|
352,300 |
|
|
|
|
|
|
|
309,057 |
|
|
|
|
|
TOTAL ASSETS |
$ |
5,426,320 |
|
|
|
|
|
|
$ |
5,311,790 |
|
|
|
|
|
|
$ |
5,291,353 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand—interest-bearing |
$ |
936,147 |
|
|
0.48 |
% |
|
$ |
1,101 |
|
$ |
1,002,822 |
|
|
0.25 |
% |
|
$ |
643 |
|
$ |
1,046,502 |
|
|
0.17 |
% |
|
$ |
438 |
Savings |
|
2,343,188 |
|
|
2.21 |
% |
|
|
12,740 |
|
|
2,293,534 |
|
|
1.33 |
% |
|
|
7,681 |
|
|
2,467,932 |
|
|
0.18 |
% |
|
|
1,115 |
Time |
|
490,815 |
|
|
2.36 |
% |
|
|
2,858 |
|
|
417,684 |
|
|
1.81 |
% |
|
|
1,908 |
|
|
359,476 |
|
|
1.30 |
% |
|
|
1,153 |
Total interest-bearing deposits |
|
3,770,150 |
|
|
1.80 |
% |
|
|
16,699 |
|
|
3,714,040 |
|
|
1.09 |
% |
|
|
10,232 |
|
|
3,873,910 |
|
|
0.28 |
% |
|
|
2,706 |
Short-term borrowings |
|
102,318 |
|
|
4.99 |
% |
|
|
1,259 |
|
|
34,865 |
|
|
4.25 |
% |
|
|
369 |
|
|
0 |
|
|
0.00 |
% |
|
|
0 |
Finance lease liabilities |
|
372 |
|
|
4.36 |
% |
|
|
4 |
|
|
394 |
|
|
5.03 |
% |
|
|
5 |
|
|
459 |
|
|
4.42 |
% |
|
|
5 |
Subordinated notes and debentures |
|
104,622 |
|
|
4.03 |
% |
|
|
1,039 |
|
|
104,546 |
|
|
3.82 |
% |
|
|
1,006 |
|
|
104,300 |
|
|
3.60 |
% |
|
|
926 |
Total interest-bearing liabilities |
|
3,977,462 |
|
|
1.94 |
% |
|
$ |
19,001 |
|
|
3,853,845 |
|
|
1.20 |
% |
|
$ |
11,612 |
|
|
3,978,669 |
|
|
0.37 |
% |
|
$ |
3,637 |
Demand—noninterest-bearing |
|
837,734 |
|
|
|
|
|
|
|
874,131 |
|
|
|
|
|
|
|
804,964 |
|
|
|
|
|
Other liabilities |
|
80,318 |
|
|
|
|
|
|
|
77,822 |
|
|
|
|
|
|
|
65,910 |
|
|
|
|
|
Total Liabilities |
|
4,895,514 |
|
|
|
|
|
|
|
4,805,798 |
|
|
|
|
|
|
|
4,849,543 |
|
|
|
|
|
Shareholders’ equity |
|
530,806 |
|
|
|
|
|
|
|
505,992 |
|
|
|
|
|
|
|
441,810 |
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
5,426,320 |
|
|
|
|
|
|
$ |
5,311,790 |
|
|
|
|
|
|
$ |
5,291,353 |
|
|
|
|
|
Interest income/Earning assets |
|
|
5.29 |
% |
|
$ |
66,910 |
|
|
|
4.95 |
% |
|
$ |
62,727 |
|
|
|
3.78 |
% |
|
$ |
46,535 |
Interest expense/Interest-bearing liabilities |
|
|
1.94 |
% |
|
|
19,001 |
|
|
|
1.20 |
% |
|
|
11,612 |
|
|
|
0.37 |
% |
|
|
3,637 |
Net interest spread |
|
|
3.35 |
% |
|
$ |
47,909 |
|
|
|
3.75 |
% |
|
$ |
51,115 |
|
|
|
3.41 |
% |
|
$ |
42,898 |
Interest income/Earning assets |
|
|
5.29 |
% |
|
|
66,910 |
|
|
|
4.95 |
% |
|
|
62,727 |
|
|
|
3.78 |
% |
|
|
46,535 |
Interest expense/Earning assets |
|
|
1.50 |
% |
|
|
19,001 |
|
|
|
0.92 |
% |
|
|
11,612 |
|
|
|
0.30 |
% |
|
|
3,637 |
Net interest margin (fully tax-equivalent) |
|
|
3.79 |
% |
|
$ |
47,909 |
|
|
|
4.03 |
% |
|
$ |
51,115 |
|
|
|
3.48 |
% |
|
$ |
42,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 31, 2023,
December 31, 2022 and March 31, 2022 was $270 thousand, $282
thousand and $281 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 March 31, 2022,
December 31, 2022 and March 31, 2022 was $(58.7) million, $(66.8)
million and $(10.6) million, respectively. |
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)Reconciliation of
Non-GAAP Financial Measures
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Calculation of tangible book value per common share and
tangible common equity / tangible assets (non-GAAP): |
|
|
|
|
|
Shareholders' equity |
$ |
546,427 |
|
|
$ |
530,762 |
|
|
$ |
425,935 |
|
Less: preferred equity |
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Common shareholders' equity |
|
488,642 |
|
|
|
472,977 |
|
|
|
368,150 |
|
Less: goodwill and other intangibles |
|
43,874 |
|
|
|
43,749 |
|
|
|
43,749 |
|
Less: core deposit intangible |
|
342 |
|
|
|
364 |
|
|
|
435 |
|
Tangible common equity (non-GAAP) |
$ |
444,426 |
|
|
$ |
428,864 |
|
|
$ |
323,966 |
|
|
|
|
|
|
|
Total assets |
$ |
5,583,334 |
|
|
$ |
5,475,179 |
|
|
$ |
5,284,000 |
|
Less: goodwill and other intangibles |
|
43,874 |
|
|
|
43,749 |
|
|
|
43,749 |
|
Less: core deposit intangible |
|
342 |
|
|
|
364 |
|
|
|
435 |
|
Tangible assets (non-GAAP) |
$ |
5,539,118 |
|
|
$ |
5,431,066 |
|
|
$ |
5,239,816 |
|
|
|
|
|
|
|
Ending shares outstanding |
|
21,116,928 |
|
|
|
21,121,346 |
|
|
|
16,860,698 |
|
|
|
|
|
|
|
Book value per common share (GAAP) |
$ |
23.14 |
|
|
$ |
22.39 |
|
|
$ |
21.83 |
|
Tangible book value per common share (non-GAAP) |
$ |
21.05 |
|
|
$ |
20.30 |
|
|
$ |
19.21 |
|
|
|
|
|
|
|
Common shareholders' equity / Total assets (GAAP) |
|
8.75 |
% |
|
|
8.64 |
% |
|
|
6.97 |
% |
Tangible common equity / Tangible assets (non-GAAP) |
|
8.02 |
% |
|
|
7.90 |
% |
|
|
6.18 |
% |
|
|
|
|
|
|
|
For the Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Calculation of net interest margin: |
|
|
|
|
|
Interest income |
$ |
66,640 |
|
|
$ |
62,445 |
|
|
$ |
46,254 |
|
Interest expense |
|
19,001 |
|
|
|
11,612 |
|
|
|
3,637 |
|
Net interest income |
$ |
47,639 |
|
|
$ |
50,833 |
|
|
$ |
42,617 |
|
|
|
|
|
|
|
Average total earning assets |
$ |
5,068,689 |
|
|
$ |
4,959,490 |
|
|
$ |
4,982,296 |
|
|
|
|
|
|
|
Net interest margin (GAAP) (annualized) |
|
3.81 |
% |
|
|
4.07 |
% |
|
|
3.47 |
% |
|
|
|
|
|
|
Calculation of net interest margin (fully tax equivalent
basis) (non-GAAP): |
|
|
|
|
|
Interest income |
$ |
66,640 |
|
|
$ |
62,445 |
|
|
$ |
46,254 |
|
Tax equivalent adjustment (non-GAAP) |
|
270 |
|
|
|
282 |
|
|
|
281 |
|
Adjusted interest income (fully tax equivalent basis)
(non-GAAP) |
|
66,910 |
|
|
|
62,727 |
|
|
|
46,535 |
|
Interest expense |
|
19,001 |
|
|
|
11,612 |
|
|
|
3,637 |
|
Net interest income (fully tax equivalent basis) (non-GAAP) |
$ |
47,909 |
|
|
$ |
51,115 |
|
|
$ |
42,898 |
|
|
|
|
|
|
|
Average total earning assets |
$ |
5,068,689 |
|
|
$ |
4,959,490 |
|
|
$ |
4,982,296 |
|
Less: average mark to market adjustment on investments
(non-GAAP) |
|
(58,664 |
) |
|
|
(66,781 |
) |
|
|
(10,560 |
) |
Adjusted average total earning assets, net of mark to market
(non-GAAP) |
$ |
5,127,353 |
|
|
$ |
5,026,271 |
|
|
$ |
4,992,856 |
|
|
|
|
|
|
|
Net interest margin, fully tax equivalent basis (non-GAAP)
(annualized) |
|
3.79 |
% |
|
|
4.03 |
% |
|
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
Reconciliation of Non-GAAP Financial
Measures
|
For the Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Calculation of PPNR (non-GAAP):
(1) |
|
|
|
|
|
Net interest income |
$ |
47,639 |
|
$ |
50,833 |
|
$ |
42,617 |
Add: Non-interest income |
|
8,042 |
|
|
9,007 |
|
|
9,654 |
Less: Non-interest expense |
|
33,990 |
|
|
37,021 |
|
|
31,892 |
PPNR (non-GAAP) |
$ |
21,691 |
|
$ |
22,819 |
|
$ |
20,379 |
|
|
|
|
|
|
(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. |
|
For the Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Calculation of efficiency ratio: |
|
|
|
|
|
Non-interest expense |
$ |
33,990 |
|
|
$ |
37,021 |
|
|
$ |
31,892 |
|
|
|
|
|
|
|
Non-interest income |
$ |
8,042 |
|
|
$ |
9,007 |
|
|
$ |
9,654 |
|
Net interest income |
|
47,639 |
|
|
|
50,833 |
|
|
|
42,617 |
|
Total revenue |
$ |
55,681 |
|
|
$ |
59,840 |
|
|
$ |
52,271 |
|
Efficiency ratio |
|
61.04 |
% |
|
|
61.87 |
% |
|
|
61.01 |
% |
|
|
|
|
|
|
Calculation of efficiency ratio (fully tax equivalent
basis) (non-GAAP): |
|
|
|
|
|
Non-interest expense |
$ |
33,990 |
|
|
$ |
37,021 |
|
|
$ |
31,892 |
|
Less: core deposit intangible amortization |
|
22 |
|
|
|
23 |
|
|
|
25 |
|
Adjusted non-interest expense (non-GAAP) |
$ |
33,968 |
|
|
$ |
36,998 |
|
|
$ |
31,867 |
|
|
|
|
|
|
|
Non-interest income |
$ |
8,042 |
|
|
$ |
9,007 |
|
|
$ |
9,654 |
|
|
|
|
|
|
|
Net interest income |
$ |
47,639 |
|
|
$ |
50,833 |
|
|
$ |
42,617 |
|
Less: tax exempt investment and loan income, net of TEFRA
(non-GAAP) |
|
1,318 |
|
|
|
1,244 |
|
|
|
1,327 |
|
Add: tax exempt investment and loan income (fully tax equivalent
basis) (non-GAAP) |
|
1,806 |
|
|
|
1,658 |
|
|
|
1,703 |
|
Adjusted net interest income (fully tax equivalent basis)
(non-GAAP) |
|
48,127 |
|
|
|
51,247 |
|
|
|
42,993 |
|
Adjusted net revenue (fully tax equivalent basis) (non-GAAP) |
$ |
56,169 |
|
|
$ |
60,254 |
|
|
$ |
52,647 |
|
|
|
|
|
|
|
Efficiency ratio (fully tax equivalent basis) (non-GAAP) |
|
60.47 |
% |
|
|
61.40 |
% |
|
|
60.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
CNB FINANCIAL
CORPORATIONCONSOLIDATED FINANCIAL
DATAUnaudited(dollars in
thousands, except per share data)
Reconciliation of Non-GAAP Financial
Measures
|
For the Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Calculation of return on average tangible common equity
(non-GAAP): |
|
|
|
|
|
Net income |
$ |
16,489 |
|
|
$ |
15,880 |
|
|
$ |
15,245 |
|
Less: preferred stock dividends |
|
1,075 |
|
|
|
1,076 |
|
|
|
1,075 |
|
Net income available to common shareholders |
$ |
15,414 |
|
|
$ |
14,804 |
|
|
$ |
14,170 |
|
|
|
|
|
|
|
Average shareholders' equity |
$ |
530,806 |
|
|
$ |
505,992 |
|
|
$ |
441,810 |
|
Less: average goodwill & intangibles |
|
44,208 |
|
|
|
44,128 |
|
|
|
44,200 |
|
Less: average preferred equity |
|
57,785 |
|
|
|
57,785 |
|
|
|
57,785 |
|
Tangible common shareholders' equity (non-GAAP) |
$ |
428,813 |
|
|
$ |
404,079 |
|
|
$ |
339,825 |
|
|
|
|
|
|
|
Return on average equity (GAAP) (annualized) |
|
12.60 |
% |
|
|
12.45 |
% |
|
|
13.99 |
% |
Return on average common equity (GAAP) (annualized) |
|
11.78 |
% |
|
|
11.61 |
% |
|
|
13.01 |
% |
Return on average tangible common equity (non-GAAP)
(annualized) |
|
14.58 |
% |
|
|
14.54 |
% |
|
|
16.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
Calculation of non-interest income excluding net realized
gains on available-for-sale securities (non-GAAP): |
|
|
|
|
|
Non-interest income |
$ |
8,042 |
|
$ |
9,007 |
|
$ |
9,654 |
Less: net realized gains on available-for-sale securities |
|
22 |
|
|
0 |
|
|
651 |
Adjusted non-interest income (non-GAAP) |
$ |
8,020 |
|
$ |
9,007 |
|
$ |
9,003 |
Contact: Tito L. Lima
Treasurer
(814) 765-9621
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