CLEARFIELD, Pa., Feb. 18, 2026 (GLOBE NEWSWIRE) -- CNB Financial Corporation (“CNB”) (NASDAQ: CCNE) today announced that CNB Bank, its wholly-owned banking subsidiary, became a state member bank regulated by the Board of Governors of the Federal Reserve System through the Federal Reserve Bank of Philadelphia effective February 12, 2026. CNB Bank will also continue to be regulated by the Pennsylvania Department of Banking and Securities. “We’re pleased to become a state member bank of the Federal Reserve Sys ...

Market Overview - The U.S. markets started 2026 on a solid footing despite challenges such as soft labor conditions, sticky inflation, geopolitical strains, and trade policy uncertainty [1] - Strong fourth-quarter earnings and a measured stance from the Federal Reserve helped mitigate some investor concerns [1] Banking Sector Performance - The KBW Nasdaq Regional Banking Index fell nearly 3% due to increased volatility and the introduction of an AI-powered tax planning tool by Altruist, raising fears of fee compression in the wealth management sector [2] - Investors are advised to focus on fundamentally strong regional banks that provide attractive dividend yields and steady income potential [2] Dividend Increases - Cathay General Bancorp (CATY), Financial Institutions, Inc. (FISI), and CNB Financial Corporation (CCNE) announced dividend increases, reflecting their resilient business models and consistent profitability [3] - CATY raised its quarterly cash dividend by 11.8% to $0.38 per share, payable on March 9, 2026 [4] - FISI increased its quarterly cash dividend by 3.2% to $0.32 per share, with payment scheduled for April 2, 2026 [7][8] - CCNE raised its dividend by 5.6% to $0.19 per share, payable on March 13, 2026 [12] Company Financials - CATY has a market cap of $3.63 billion, with a projected 2026 sales growth of 5.3% and earnings growth of 12.6% [6] - FISI has a market cap of $692.7 million, with expected 2026 sales growth of 6% and earnings growth of 8% [10] - CCNE has a market cap of $874.9 million, with anticipated 2026 sales growth of 22.2% and earnings growth of 16.6% [13]

Core Viewpoint - CNB Financial (CCNE) reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.66 per share a year ago, representing an earnings surprise of +14.29% [1] Financial Performance - The company posted revenues of $87.16 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.63%, compared to $59.97 million in the same quarter last year [2] - Over the last four quarters, CNB has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - CNB shares have increased approximately 3.5% since the beginning of the year, outperforming the S&P 500, which gained 1.5% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.78 on revenues of $83.8 million, and for the current fiscal year, it is $3.45 on revenues of $347.7 million [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Northeast sector is currently in the top 22% of over 250 Zacks industries, suggesting a favorable environment for performance [8] - Northeast Community Bancorp (NECB), a peer in the same industry, is expected to report quarterly earnings of $0.85 per share, reflecting a year-over-year increase of +6.3% [9]

Financial Performance - Net income for Q4 2025 was $32.6 million, or $1.10 per diluted share, a significant increase from $6.0 million, or $0.22 per diluted share in Q3 2025, and $14.0 million, or $0.66 per diluted share in Q4 2024[4] - Adjusted earnings for Q4 2025, excluding merger-related expenses, were $25.8 million, or $0.87 per diluted share, reflecting a 14.74% increase from $22.5 million, or $0.82 per diluted share in Q3 2025[7] - For the full year 2025, adjusted earnings were $73.4 million, or $2.95 per diluted share, a 46.06% increase from $50.3 million, or $2.39 per diluted share in 2024[7] - Net income available to common shareholders for Q4 2025 was $32,573,000, a significant increase from $5,969,000 in Q3 2025, representing a growth of 444%[41] - Net income available to common shareholders for the twelve months ended December 31, 2025, was $61,829,000, representing a 22.9% increase from $50,273,000 in the previous year[34] Loan and Deposit Growth - Total loans reached $6.4 billion as of December 31, 2025, with organic loan growth of $26.6 million, or 0.42% (1.65% annualized) compared to Q3 2025[4] - Total deposits were $7.0 billion at December 31, 2025, with organic deposit growth of $122.1 million, or 2.21% (8.75% annualized) from Q3 2025[4] - The increase in loans for the full year was primarily driven by growth in the Ridge View Bank and BankOnBuffalo markets, with a total organic loan growth of $218.8 million, or 4.83% compared to December 31, 2024[7] - Total loans and loans held for sale increased to $6,489,706,000 for the three months ended December 31, 2025, up 9.3% from $5,971,441,000 in the previous quarter[35] - Total deposits as of December 31, 2025, reached $7,027,109,000, up from $6,900,267,000 in Q3 2025, indicating a growth of 1.84%[42] Asset Quality - Total nonperforming assets were approximately $42.2 million, or 0.50% of total assets, as of December 31, 2025, slightly up from $40.4 million, or 0.49% of total assets in Q3 2025[4] - Net loan charge-offs for the three months ended December 31, 2025, were $1.5 million, or 0.09% of average total loans, compared to $2.1 million, or 0.19%, for the same period in 2024[9] - The allowance for credit losses as a percentage of total loans was 1.03% as of December 31, 2025, compared to 1.05% as of September 30, 2025[27] - The provision for credit losses reflected a net reversal of $15.5 million for the three months ended December 31, 2025, compared to an expense of $18.5 million for the previous quarter[27] - The total nonperforming loans decreased to $39,887 thousand from $36,099 thousand in the previous quarter, indicating improved asset quality[37] Revenue and Income - Total revenue for the year ended December 31, 2025, was $282.2 million, an increase of 24.5% compared to $226.6 million for the year ended December 31, 2024[21] - Net interest income for the year ended December 31, 2025, was $242.0 million, reflecting a 29.11% increase from $187.5 million for the year ended December 31, 2024[21] - Total non-interest income for the year ended December 31, 2025, was $40.2 million, a slight increase from $39.1 million for the year ended December 31, 2024[21] - The yield on earning assets was 5.90% for the year ended December 31, 2025, an increase of 2 basis points from December 31, 2024[21] - Interest income for Q4 2025 was $115,550,000, compared to $108,645,000 in Q3 2025 and $83,678,000 in Q4 2024, showing a positive trend in revenue generation[44] Efficiency and Ratios - The efficiency ratio was 69.55% for the three months ended December 31, 2025, compared to 64.56% for the three months ended September 30, 2025[20] - The annualized return on average equity for the three months ended December 31, 2025, was 15.58%, up from 12.05% for the three months ended September 30, 2025[20] - The adjusted efficiency ratio (fully tax equivalent basis) improved to 58.80% for the three months ended December 31, 2025, from 57.67% in September 2025[46] - Return on average assets (GAAP) for the three months ended December 31, 2025, was 1.61%, up from 0.36% in the previous quarter[48] - The company reported a net interest spread of 3.32%, an increase from 3.13% in the previous quarter, highlighting improved efficiency in interest income generation[39] Shareholder Value - Book value per common share increased to $27.63 at December 31, 2025, from $26.68 at September 30, 2025, reflecting a 2.64% increase[5] - Cash dividends per common share remained stable at $0.18 for Q4 2025, consistent with the previous quarters[41] - The dividend payout ratio for Q4 2025 was 16%, a decrease from 82% in Q3 2025, indicating a more conservative approach to dividend distribution[41] - Shareholders' equity grew to $723,241 thousand, compared to $592,550 thousand in 2024, representing a 22.1% increase[40] - Tangible common equity reached $692,137 thousand in December 2025, compared to $657,900 thousand in September 2025 and $508,830 thousand in December 2024[45]

Core Insights - CNB Financial Corporation reported significant earnings growth for the fourth quarter and full year of 2025, driven by the acquisition of ESSA Bancorp and organic growth in loans and deposits [5][6][8] Financial Performance - Earnings for Q4 2025 were $32.6 million, or $1.10 per diluted share, a substantial increase from $6.0 million, or $0.22 per diluted share in Q3 2025, and $14.0 million, or $0.66 per diluted share in Q4 2024 [5][6] - Adjusted earnings for Q4 2025, excluding merger-related expenses, were $25.8 million, or $0.87 per diluted share, reflecting a 14.74% increase from Q3 2025 [6][7] - For the full year 2025, earnings totaled $61.8 million, or $2.49 per diluted share, with adjusted earnings of $73.4 million, or $2.95 per diluted share, marking a 46.06% increase from 2024 [7][8] Loan and Deposit Growth - Total loans reached $6.4 billion as of December 31, 2025, with organic loan growth of $26.6 million, or 0.42% for the quarter [6][7] - Total deposits were $7.0 billion, with organic deposit growth of $122.1 million, or 2.21% for the quarter [6][7] Net Interest Margin and Revenue - Net interest margin improved to 3.84% for Q4 2025, up from 3.69% in Q3 2025 [6][7] - Total revenue for Q4 2025 was $86.4 million, compared to $77.7 million in Q3 2025 and $59.4 million in Q4 2024 [6][7] Asset Quality - Total nonperforming assets were approximately $42.2 million, or 0.50% of total assets, as of December 31, 2025, a slight increase from $40.4 million in Q3 2025 [6][8] - The allowance for credit losses was 1.03% of total loans as of December 31, 2025, compared to 1.05% in Q3 2025 [28][29] Capital and Book Value - Book value per common share was $27.63 as of December 31, 2025, reflecting an increase from $26.68 in Q3 2025 [11][12] - Tangible book value per common share was $23.48, with an adjusted value of $23.88, indicating a 4.10% increase from Q3 2025 [11][12] Non-Interest Expenses - Total non-interest expense for Q4 2025 was $60.1 million, with an adjusted figure of $52.3 million excluding merger costs, reflecting a 13.66% increase from Q3 2025 [27][28] - The increase in non-interest expenses was primarily driven by higher salaries and benefits due to staffing additions from the ESSA acquisition [27][28]

Core Viewpoint - CNB Financial Corporation is preparing to release its fourth-quarter 2025 earnings, with analysts projecting earnings per share of $0.77 and revenue of $73.1 million for this period [1]. Financial Performance - In the previous quarter, CNB Financial reported earnings of $0.82 per share, exceeding the consensus estimate of $0.78 [2]. - The company achieved a return on equity of 10.38% and a net margin of 11.92% [2]. - Revenue for the previous quarter reached $77.7 million, surpassing analyst expectations of $68.5 million [2]. Valuation Metrics - CNB Financial has a price-to-earnings (P/E) ratio of 13.15 and a price-to-sales ratio of 2.03, indicating the market's valuation of the company's earnings and sales [3]. - The enterprise value to sales ratio is 2.29, and the enterprise value to operating cash flow ratio is 14.73, reflecting the company's valuation and cash flow efficiency [3]. Financial Health - The company maintains a debt-to-equity ratio of 0.22, indicating a low level of debt compared to its equity [4]. - The current ratio is notably high at 38.62, suggesting strong liquidity [4]. - Analysts project earnings per share of $2 for the current fiscal year and $4 for the next fiscal year [4].

Financial Performance - Total assets increased to $8,254,319 thousand as of September 30, 2025, up from $6,192,010 thousand at December 31, 2024, representing a growth of 33.4%[15] - Net income for Q3 2025 was $7,045,000, a decrease of 49.6% compared to $13,954,000 in Q3 2024[18] - Comprehensive income for Q3 2025 was $9,947,000, down from $24,048,000 in Q3 2024, reflecting a decline of 58.7%[18] - Net income for the nine months ended September 30, 2025, was $32,482 thousand, a decrease from $39,511 thousand in the same period of 2024, representing a decline of approximately 18.4%[22] - Basic earnings per common share for Q3 2025 was $0.22, down from $0.61 in Q3 2024, a decrease of 63.6%[17] - The company reported a significant increase in salaries to $15,597 million in Q3 2025, up from $13,726 million in Q3 2024, reflecting investment in human resources[192] Loan and Credit Quality - Net loans receivable rose to $6,400,512 thousand, compared to $4,561,599 thousand in the previous period, marking an increase of 40.3%[15] - Provision for credit loss expense significantly increased to $18,456,000 in Q3 2025 from $2,381,000 in Q3 2024, indicating a rise in expected credit losses[17] - The allowance for credit losses increased to $67,684 thousand from $47,357 thousand, indicating a rise of 42.9%[15] - The total provision for credit losses for the nine months ended September 30, 2025, was $5.936 billion, significantly impacting the overall financial performance[87] - The allowance for credit losses for owner-occupied, nonfarm nonresidential properties increased to $6.704 billion, reflecting a charge-off of $1.516 billion[87] - The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, and economic forecasts[89] Deposits and Funding - Total deposits grew to $6,900,267 thousand, up from $5,371,364 thousand, reflecting a 28.5% increase[15] - The company experienced a net increase in checking, money market, and savings accounts of $155,024 thousand in 2025, compared to $70,861 thousand in 2024, indicating a growth of approximately 118.0%[22] - Brokered deposits increased to $261.9 million as of September 30, 2025, compared to $185.0 million at December 31, 2024[131] - Total loans pledged to the Federal Home Loan Bank (FHLB) were $3.6 billion as of September 30, 2025, up from $2.1 billion at December 31, 2024[134] Merger and Acquisition - The company is focused on integrating operations following the merger with ESSA Bancorp, Inc., aiming for expected synergies and efficiencies[12] - The acquisition of ESSA Bancorp and ESSA Bank contributed $202,549,000 to additional paid-in capital[19] - The total consideration paid to ESSA shareholders was approximately $202.6 million, consisting of about 8,359,430 shares valued at approximately $202.5 million and $21 thousand in cash for fractional shares[51] - The Corporation incurred merger and integration costs of $4.2 million for the three months and $6.0 million for the nine months ended September 30, 2025[52] Non-Interest Income and Expenses - Non-interest income totaled $10,566,000 in Q3 2025, slightly down from $10,973,000 in Q3 2024, showing a decrease of 3.7%[17] - Total non-interest expenses increased to $50,157,000 in Q3 2025, up from $38,784,000 in Q3 2024, marking a 29.4% rise[17] - Total non-interest income for the nine months ended September 30, 2025, was $28,081 million, slightly down from $28,793 million in the same period of 2024[192] Cash Flow and Investments - Net cash provided by operating activities decreased to $38,879 thousand in 2025 compared to $49,271 thousand in 2024, reflecting a decline of about 21.0%[22] - The company reported net cash provided by investing activities of $62,086 thousand in 2025, a significant improvement compared to a net cash used of $113,594 thousand in 2024[22] - Cash dividends declared for common stock were $12,885 thousand in 2025, compared to $11,134 thousand in 2024, representing an increase of approximately 15.7%[22] Asset Management - The total liabilities increased to $7,410,134 thousand, up from $5,581,315 thousand, representing a growth of 32.7%[15] - The total cash and cash equivalents at the end of September 2025 were $438,088 thousand, up from $360,909 thousand at the end of September 2024, marking an increase of approximately 21.4%[23] - The fair value of debt securities available-for-sale was $533.55 million as of September 30, 2025, with an amortized cost of $569.24 million[68] Risk Management - Future performance may be impacted by changes in interest rates and credit risks associated with lending activities[12] - The company anticipates potential challenges from economic conditions and competition affecting its operations and market position[12] - Significant uncertainty regarding the economy persists due to elevated interest rates and geopolitical conflicts, prompting management to evaluate expected credit losses proactively[90]

Core Insights - CNB Financial (CCNE) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.61 per share a year ago, representing an earnings surprise of +5.13% [1] - The company achieved revenues of $78.41 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.40% and increasing from $59.11 million year-over-year [2] - CNB has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $83.9 million, and for the current fiscal year, it is $2.71 on revenues of $280.5 million [7] - The estimate revisions trend for CNB was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Northeast industry, to which CNB belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for the third quarter of 2025 was $6.0 million, or $0.22 per diluted share, a decrease from $12.9 million, or $0.61 per diluted share, in the previous quarter[5] - Adjusted earnings for the third quarter of 2025 were $22.5 million, or $0.82 per diluted share, reflecting a 70.17% increase compared to adjusted earnings of $13.2 million, or $0.63 per diluted share, for the previous quarter[8] - Total revenue for the three months ended September 30, 2025, was $77.7 million, an increase of $16.5 million, or 26.94%, from $61.2 million for the three months ended June 30, 2025[22] - Net income available to common shareholders for Q3 2025 was $5,969,000, a decrease from $12,881,000 in Q2 2025 and $12,878,000 in Q3 2024[44] - Adjusted net income available to common shareholders for the nine months ended September 30, 2025, was $47,582 thousand, up from $36,285 thousand in 2024, marking a 31.2% increase[42] Asset and Loan Growth - Total loans as of September 30, 2025, were $6.4 billion, with organic loan growth of $90.8 million, or 1.95% (7.74% annualized), compared to June 30, 2025[8] - Total assets reached $7,783,995,000 as of September 30, 2025, compared to $6,235,036,000 at the end of the previous quarter, marking a 24.8% growth[36] - Average loans and loans held for sale increased to $5,971,441,000 for the three months ended September 30, 2025, from $4,668,051,000 in the previous quarter, representing a 27.9% rise[36] - Total loans receivable rose to $5,971,441 thousand, an increase of 27.9% compared to $4,668,051 thousand in the previous quarter[40] Deposit Growth - Total deposits reached $6.9 billion, with organic deposit growth of $70.2 million, or 1.28% (5.10% annualized), compared to June 30, 2025[8] - Total deposits as of September 30, 2025, were $6,900,267,000, an increase from $5,467,082,000 in Q2 2025 and $5,216,949,000 in Q3 2024[43] Interest Income and Margin - Net interest income for the three months ended September 30, 2025, was $67.1 million, reflecting an increase of $14.9 million, or 28.61%, from $52.2 million for the three months ended June 30, 2025[22] - The net interest margin improved to 3.69% for the third quarter of 2025, up from 3.60% in the previous quarter[5] - Interest income for Q3 2025 reached $108,645,000, up 26.6% from $85,771,000 in Q2 2025 and 30.6% from $83,235,000 in Q3 2024[45] Non-Interest Income and Expenses - Total non-interest income for the three months ended September 30, 2025, was $10.6 million, including $391 thousand from fee-based sources acquired from the ESSA acquisition[23] - Total non-interest expense for Q3 2025 was $50.2 million, up 17.17% from $39.6 million in Q2 2025, primarily due to increased salaries and benefits related to the ESSA acquisition[28] - Non-interest income totaled $10,566,000 for the three months ended September 30, 2025, up from $9,008,000 in the previous quarter, reflecting a 17.3% increase[35] Credit Quality and Allowance for Losses - Total nonperforming assets increased to approximately $40.4 million, or 0.49% of total assets, as of September 30, 2025, compared to $30.4 million, or 0.48% of total assets, as of June 30, 2025[5] - The allowance for credit losses was 1.05% of total loans as of September 30, 2025, up from 1.02% in Q2 2025[29] - Provision for credit losses was $18.5 million for Q3 2025, significantly higher than $4.3 million in Q2 2025, driven by a $16.4 million reserve for non-PCD loans from the ESSA acquisition[29] Shareholder Equity - Total shareholders' equity as of September 30, 2025, was $844.2 million, an increase of 32.47% from $637.3 million in Q2 2025[32] - The ratio of common shareholders' equity to total assets improved to 9.53% as of September 30, 2025, compared to 9.17% in Q2 2025[32] - Common shareholders' equity increased to $786,400,000 in Q3 2025, up 35.7% from $579,496,000 in Q2 2025 and 43.3% from $548,578,000 in Q3 2024[46] Efficiency and Returns - The efficiency ratio improved to 64.56% for the three months ended September 30, 2025, down from 64.73% for the three months ended June 30, 2025, with a fully tax-equivalent basis efficiency ratio of 57.67% when excluding merger costs[22] - The annualized return on average equity was 3.60% for the three months ended September 30, 2025, compared to 8.83% for the three months ended June 30, 2025, but 12.05% when excluding after-tax merger transaction related expenses[22] - Adjusted return on average equity (non-GAAP) for Q3 2025 was 12.05%, an increase from 9.06% in Q2 2025 and 9.28% in Q3 2024[49]

Core Insights - CNB Financial Corporation reported earnings of $6.0 million, or $0.22 per diluted share, for the three months ended September 30, 2025, a decrease from $12.9 million, or $0.61 per diluted share, for the previous quarter [6][7] - The acquisition of ESSA Bancorp, completed on July 23, 2025, added total assets of $2.1 billion, including $1.7 billion in loans and $1.5 billion in deposits, expanding CNB Bank's branch network by 20 offices [2][10] - Adjusted earnings for the third quarter of 2025 were $22.5 million, or $0.82 per diluted share, reflecting a 70.17% increase from the previous quarter [8][12] Financial Performance - Total revenue for the three months ended September 30, 2025, was $77.7 million, compared to $61.2 million for the previous quarter [22] - Net interest income increased to $67.1 million for the third quarter of 2025, up from $52.2 million in the second quarter [22] - The net interest margin was 3.69% for the third quarter of 2025, compared to 3.60% for the previous quarter [22] Loan and Deposit Growth - Total loans were $6.4 billion as of September 30, 2025, with organic loan growth of $90.8 million, or 1.95% for the quarter [8][12] - Total deposits reached $6.9 billion, with organic deposit growth of $70.2 million, or 1.28% for the quarter [8][12] - The increase in deposits was primarily driven by growth in Treasury Management-sourced business deposits [12] Credit Quality - Total nonperforming assets were approximately $40.4 million, or 0.49% of total assets, as of September 30, 2025, an increase from $30.4 million, or 0.48% of total assets, in the previous quarter [12][32] - Net loan charge-offs were $957 thousand, or 0.06% of average total loans, for the third quarter of 2025, down from $3.3 million, or 0.28% in the previous quarter [12][32] Capital and Equity - The Corporation's total shareholders' equity was $844.2 million as of September 30, 2025, an increase of 32.47% from the previous quarter [31] - The ratio of common shareholders' equity to total assets was 9.53% as of September 30, 2025, compared to 9.17% at June 30, 2025 [7][31] Strategic Initiatives - The acquisition of ESSA Bancorp is seen as a significant milestone, expanding CNB's asset base to over $8 billion and enhancing its operational scale [10][11] - The integration of ESSA's operations is progressing positively, with expected cost savings and earnings accretion meeting or exceeding pre-merger expectations [11][12]