Company Overview - CNB Financial (CCNE) is a bank holding company headquartered in Clearfield, with a year-to-date price change of -3.46% [3] - The company currently pays a dividend of $0.18 per share, resulting in a dividend yield of 3%, which is higher than the Banks - Northeast industry's yield of 2.78% and the S&P 500's yield of 1.53% [3] Dividend Performance - The current annualized dividend of CNB Financial is $0.72, reflecting a 1.4% increase from the previous year [4] - Over the past five years, CNB Financial has increased its dividend two times year-over-year, with an average annual increase of 1.17% [4] - The company's current payout ratio is 30%, indicating that it pays out 30% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - CNB Financial is expected to see earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2025 at $2.64 per share, representing a 10.46% increase from the previous year [5] Investment Appeal - Dividends are favored by investors for various reasons, including tax advantages and reduced overall portfolio risk, which can enhance stock investing profits [6] - High-growth firms typically do not provide dividends, while established companies with secure profits are viewed as better dividend options [7] - CNB Financial is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

CLEARFIELD, Pa. and STROUDSBURG, Pa., June 30, 2025 (GLOBE NEWSWIRE) -- CNB Financial Corporation (“CNB”) (NASDAQ: CCNE) and ESSA Bancorp Inc. (“ESSA”) (NASDAQ: ESSA) are pleased to announce that they have received the necessary bank regulatory approvals to complete the proposed merger (the “Merger”) of ESSA with and into CNB and ESSA Bank & Trust (“ESSA Bank”) with and into CNB Bank (“CNB Bank”). The Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities approved th ...

Financial Performance - Net income for Q1 2025 was $11,481 thousand, down from $12,600 thousand in Q1 2024, indicating a decrease of 8.9%[17] - Comprehensive income for Q1 2025 was $18,542 thousand, compared to $11,475 thousand in Q1 2024, an increase of 62.0%[17] - Basic earnings per common share decreased to $0.50 for the three months ended March 31, 2025, compared to $0.55 in 2024, with net income allocated to common stock at $10,349 thousand versus $11,433 thousand[127] - The segment net income for the three months ended March 31, 2025, is $11,481 million, a decrease from $12,600 million in the same period of 2024[152] Assets and Liabilities - Total assets increased to $6,295,508 thousand as of March 31, 2025, up from $6,192,010 thousand at December 31, 2024, representing a growth of 1.67%[14] - Cash and cash equivalents at the end of Q1 2025 were $520,157,000, up from $301,453,000 at the end of Q1 2024, representing an increase of 72.5%[21] - The corporation's total shareholders' equity increased to $624,508,000 as of March 31, 2025, from $578,640,000 as of March 31, 2024, marking an increase of 7.9%[18] - Total deposits rose to $5,460,078 thousand as of March 31, 2025, compared to $5,371,364 thousand at the end of 2024, marking an increase of 1.65%[14] Income and Expenses - Net interest income for the three months ended March 31, 2025, was $48,431 thousand, compared to $45,222 thousand for the same period in 2024, reflecting an increase of 4.9%[16] - Non-interest expenses totaled $41,038 thousand for Q1 2025, compared to $37,424 thousand in Q1 2024, reflecting an increase of 9.0%[16] - Total cash provided by operating activities in Q1 2025 was $11,599,000, compared to $12,460,000 in Q1 2024, reflecting a decline of 6.9%[20] Credit Losses and Provisions - The provision for credit loss expense increased to $1,556 thousand in Q1 2025 from $1,320 thousand in Q1 2024, a rise of 17.9%[16] - The allowance for credit losses remained constant at $47,357 million for both March 31, 2025, and December 31, 2024[53] - The provision for credit losses was $1.6 million for the three months ended March 31, 2025, compared to $1.3 million for the same period in 2024, reflecting an increase of approximately 23%[58] Loans and Receivables - As of March 31, 2025, total net loans receivable amounted to $4,610,009 million, slightly increasing from $4,608,956 million as of December 31, 2024[53] - The total loans amount remained stable at $47.357 billion as of March 31, 2025, despite fluctuations in charge-offs and recoveries[56] - The total past due loans amounted to $51,127, with not past due loans totaling $4,558,882, leading to a total of $4,610,009 in loans receivable[61] Securities and Investments - The Corporation's total available-for-sale (AFS) debt securities amounted to $559.354 million as of March 31, 2025, with a fair value of $516.442 million[42] - The fair value of debt securities available-for-sale as of March 31, 2025, is $516,442 million, consistent with the carrying amount[146] - The Corporation's total debt securities include $398.702 million in residential and multi-family mortgage securities[43] Mergers and Acquisitions - The merger with ESSA Bancorp, Inc. is pending governmental approvals, which may affect future results and operations[11] Dividends - The company declared cash dividends of $0.180 per share in Q1 2025, up from $0.175 per share in Q1 2024, representing a 2.86% increase[16] - The corporation declared cash dividends of $3,777,000 for common stock in Q1 2025, slightly higher than $3,680,000 in Q1 2024[20] Economic Outlook - Management continues to evaluate expected credit losses due to uncertainties in the domestic and global economy, including elevated interest rates and geopolitical conflicts[57] - The company is focusing on maintaining a healthy loan portfolio while exploring opportunities for market expansion and new product development[86]

Financial Performance - Net income for Q1 2025 was $10.4 million, or $0.50 per diluted share, a decrease of 14.98% from Q4 2024[4] - Total revenue for the three months ended March 31, 2025, was $56.9 million, an increase compared to $54.2 million for the same period in 2024[1] - Net income for Q1 2025 was $11,481,000, down 23.5% from $15,064,000 in Q4 2024, but up 9.0% from $12,600,000 in Q1 2024[30] - Adjusted net income available to common shareholders was $11,893 thousand for Q1 2025, reflecting a decrease from $13,988 thousand in the previous quarter[41] - The diluted earnings per common share for Q1 2025 was $0.50, down from $0.66 in Q4 2024 and $0.55 in Q1 2024[30] Loan and Deposit Growth - Total loans reached $4.5 billion, reflecting a quarterly increase of $11.7 million, or 0.26%, and a year-over-year increase of $188.1 million, or 4.32%[4] - Total deposits increased to $5.5 billion, up $88.7 million, or 1.65% quarterly, and $422.5 million, or 8.39% year-over-year[4] - Average loans and loans held for sale rose to $4,591,395,000 in Q1 2025, up 0.8% from $4,556,770,000 in Q4 2024 and up 3.7% from $4,428,751,000 in Q1 2024[31] - Total deposits grew to $5,460,078,000 in Q1 2025, an increase of 1.7% from $5,371,364,000 in Q4 2024[32] Asset Quality - Nonperforming assets were approximately $56.1 million, or 0.89% of total assets, down from 0.96% in Q4 2024[6] - Total nonperforming assets were approximately $56.1 million, or 0.89% of total assets, as of March 31, 2025, down from $59.5 million, or 0.96%, at the end of 2024[4] - Total nonperforming loans decreased to $54,387 thousand from $56,976 thousand year-over-year, reflecting improved asset quality[33] - The allowance for credit losses as a percentage of total loans was 1.03% as of March 31, 2025, consistent with the previous year[4] Revenue and Expenses - Net interest income was $48.4 million for the three months ended March 31, 2025, a decrease of $613 thousand, or 1.25%, from the previous quarter[1] - Total non-interest expense was $41.0 million for the three months ended March 31, 2025, with an increase of $1.7 million, or 4.51%, from the previous quarter[2] - Total non-interest income decreased to $8,507,000 in Q1 2025 from $10,321,000 in Q4 2024, representing a decline of 17.5%[30] - The provision for credit losses was $1.6 million for the three months ended March 31, 2025, compared to $2.9 million in the previous quarter[3] Capital and Equity - The Corporation's total shareholders' equity was $624.5 million as of March 31, 2025, representing an increase of $45.9 million, or 7.93%, from the same period in 2024[4] - Common shareholders' equity rose to $566,723 thousand, a 2.93% increase from $552,910 thousand at December 31, 2024[39] - Tangible common equity increased to $522,659 thousand, a 2.63% rise from $508,830 thousand at December 31, 2024[39] - Book value per common share increased to $27.01, up from $26.34 at the end of Q4 2024, and tangible book value per common share was $24.91[9] Efficiency and Ratios - The efficiency ratio was 72.07% for the three months ended March 31, 2025, compared to 63.02% for the same period in 2024[1] - The efficiency ratio for the first quarter of 2025 was 72.07%, compared to 63.68% in the previous quarter, indicating a decline in operational efficiency[40] - The net interest margin (fully tax equivalent) was 3.37% for the three months ended March 31, 2025, compared to 3.43% in the previous quarter[35] - Annualized return on average equity was 7.52% for the three months ended March 31, 2025, down from 9.79% in the same quarter of 2024[1] Mergers and Acquisitions - The Corporation is pursuing the acquisition of ESSA Bancorp, Inc., which may incur additional non-recurring merger-related costs[7] - The Corporation announced a definitive merger agreement with ESSA Bancorp, expected to close in the third quarter of 2025[5]

Executive Summary - CNB Financial Corporation reported net income of $10.4 million, or $0.50 per diluted share, for the three months ended March 31, 2025, reflecting a decrease of 14.98% from the previous quarter [3] - Excluding after-tax merger costs, earnings were $11.9 million, or $0.57 per diluted share, which is a 3.19% increase year-over-year compared to the same quarter in 2024 [3] Financial Performance - Total revenue for the quarter was $56.9 million, a decrease from $59.4 million in the previous quarter but an increase from $54.2 million year-over-year [20] - Net interest income was $48.4 million, down from $49.0 million in the previous quarter and up from $45.2 million year-over-year [20] - Non-interest income totaled $8.5 million, down from $10.3 million in the previous quarter and $9.0 million year-over-year [20] Loan and Deposit Growth - Total loans reached $4.5 billion, representing a quarterly increase of $11.7 million, or 0.26%, and a year-over-year increase of $188.1 million, or 4.32% [3] - Total deposits were $5.5 billion, reflecting a quarterly increase of $88.7 million, or 1.65%, and a year-over-year increase of $422.5 million, or 8.39% [3] Asset Quality - Total nonperforming assets were approximately $56.1 million, or 0.89% of total assets, down from $59.5 million, or 0.96% of total assets in the previous quarter [27] - The allowance for credit losses was 1.03% of total loans, consistent with previous quarters [27] Capital and Liquidity - Total shareholders' equity was $624.5 million, an increase of $13.8 million, or 2.26%, from the previous quarter [27] - The Corporation maintained excess liquidity totaling approximately $100.7 million, which covers the unrealized losses on investments [7][27] Merger Activity - The Corporation announced a definitive merger agreement with ESSA Bancorp, Inc., expected to close in the third quarter of 2025, subject to regulatory approvals [25]

Core Viewpoint - CNB Financial Corporation has received a recommendation from Institutional Shareholder Services Inc (ISS) for shareholders to vote "FOR" the proposals related to the merger with ESSA Bancorp, the approval of the 2025 Omnibus Incentive Plan, and the advisory resolution on executive compensation [1] Group 1: Merger and Proposals - The proposals include issuing shares of CNB common stock in connection with the merger of ESSA Bancorp into CNB [1] - The Annual Meeting for shareholders is scheduled for April 15, 2025, at 2:00 p.m. Eastern Time [2] - Shareholders of record as of February 18, 2025, can attend the meeting and vote via live webcast [2] Group 2: Shareholder Engagement - CNB encourages shareholders to read the joint proxy statement/prospectus and submit their voting instructions promptly [3] - Assistance for voting can be obtained from CNB's proxy solicitor, Alliance Advisors [3] Group 3: Company Overview - CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.2 billion [4] - The company operates primarily through its subsidiary, CNB Bank, which offers a full range of banking services [4] - CNB Bank has multiple divisions and operates 56 full-service offices across Pennsylvania, Ohio, New York, and Virginia [4]

Risk Management - The Bank's interest rate risk is managed through static gap analysis and earnings simulation modeling, focusing on preserving net interest income sensitivity to interest rate changes [95]. - The Corporation's risk management framework may not effectively mitigate all risks, potentially affecting financial results [134]. - The risks associated with acquisitions may hinder the Corporation's ability to realize anticipated benefits and integrate operations effectively [112]. - Cybersecurity threats remain a significant concern, with potential incidents leading to customer attrition and regulatory scrutiny, impacting financial condition [121]. - As of December 31, 2024, the Corporation has not experienced material risks from cybersecurity threats, but future incidents cannot be ruled out [123]. - The Corporation's reliance on information technology systems poses risks, including service denials and operational challenges if third-party systems fail [118]. - Legislative changes could lead to higher credit losses for the Corporation, impacting its ability to collect on loans [132]. - The Corporation's use of artificial intelligence may expose it to operational challenges and increasing regulatory scrutiny [129]. - The Corporation's financial performance could be adversely affected by geopolitical instabilities and terrorist activities, leading to increased delinquencies and defaults [128]. Financial Condition - The Corporation's investment securities portfolio is subject to credit risk, market risk, and liquidity risk, which could lead to impairment charges affecting financial results [96]. - A substantial decline in the value of the Bank's FHLB common stock could adversely impact the Corporation's liquidity and financial condition [98]. - The Corporation's ability to pay dividends is limited by legal and regulatory requirements, which depend on the Bank's financial condition and retained earnings [107]. - The Corporation's stock price is subject to significant fluctuations due to various factors, including market conditions and operational performance [106]. Competition and Market Environment - The Corporation faces strong competition from both traditional banks and non-bank financial service providers, which may impact profitability [113]. - Rapid technological changes in the financial services industry necessitate the Corporation's adaptation to maintain competitiveness and efficiency [114]. Merger Considerations - The Merger with ESSA may lead to a decline in the market price of the Corporation's common stock if perceived benefits are not realized [135]. - Completion of the Merger is subject to various conditions, and failure to complete it could negatively impact the Corporation's stock price and future business [139]. - The Corporation may incur substantial costs related to the proposed Merger, including legal, accounting, and financial advisory fees [141]. - If the Merger is not completed, the Corporation could face negative reactions from financial markets, customers, and employees [142]. - The integration of the Corporation and ESSA will present significant challenges and expenses, potentially affecting operational effectiveness and anticipated benefits [143]. - The successful integration of ESSA's operations is critical for achieving expected synergies and cost savings [143]. - Management's focus may be diverted from day-to-day operations during the integration process, impacting service to existing customers [143]. - The Merger must be consummated by January 9, 2026, or it may be terminated under certain conditions [140]. - Approval from the Corporation's shareholders and ESSA shareholders is required for the Merger to proceed [140]. - Any material breach of the Merger Agreement by either party could lead to termination of the Merger [140]. - ESSA's Board of Directors must recommend approval of the Merger Agreement to avoid adverse impacts on the Corporation [140]. - The Corporation cannot assure stockholders that risks associated with the Merger will not materialize, potentially affecting business and financial results [142].

Group 1 - Investors in CNB Financial Corporation (CCNE) should monitor the stock closely due to significant implied volatility in the options market, particularly the Mar 21, 2025 $25.00 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that a major event may be anticipated that could lead to a substantial price change [2] - CNB Financial currently holds a Zacks Rank 3 (Hold) in the Banks - Northeast industry, which is in the top 6% of the Zacks Industry Rank, but analysts have not increased earnings estimates for the current quarter, with a consensus estimate dropping from 58 cents to 53 cents per share [3][4] Group 2 - The high implied volatility for CNB Financial could indicate a developing trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Group 1 - CNB Financial Corporation declared a quarterly cash dividend of $0.18 per share, payable on March 14, 2025, to shareholders of record as of February 28, 2025 [1] - CNB Financial Corporation has consolidated assets of approximately $6.2 billion [2] - The company operates primarily through its subsidiary, CNB Bank, which offers a full range of banking services including trust and wealth management [2] Group 2 - CNB Bank has a diverse operational structure with a private banking division, one drive-up office, one mobile office, and 55 full-service offices across Pennsylvania, Ohio, New York, and Virginia [2] - The bank serves various customer segments including individuals, businesses, governments, and institutions [2] - CNB Bank operates multiple divisions, including ERIEBANK, FCBank, BankOnBuffalo, Ridge View Bank, and Impressia Bank, which focuses on banking opportunities for women [2]

Group 1 - CNB Financial (CCNE) reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and showing an increase from $0.62 per share a year ago, representing an earnings surprise of 22.22% [1] - The company posted revenues of $59.97 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.22%, compared to year-ago revenues of $56.83 million [2] - CNB has outperformed the S&P 500 with a 2.9% increase since the beginning of the year, while the S&P 500 gained 2.2% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $58.2 million, and for the current fiscal year, it is $1.72 on revenues of $264.8 million [7] - The Zacks Industry Rank for Banks - Northeast is in the top 9% of over 250 Zacks industries, indicating strong performance potential [8] - Another company in the same industry, Isabella Bank Corporation (ISBA), is expected to report quarterly earnings of $0.49 per share, reflecting a year-over-year decline of 3.9%, with revenues projected at $18.6 million, an increase of 8.6% from the previous year [9]