CNB Financial(CCNE) - 2023 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2023, was $16,489,000, compared to $15,245,000 for the same period in 2022, representing an increase of approximately 8.15%[10] - The company reported a comprehensive income of $22,328,000 for the three months ended March 31, 2023, compared to a loss of $11,708,000 in the same period of 2022[6] - Net income for Q1 2023 was $16,489,000, an increase from $15,245,000 in Q1 2022, which is a growth of 8%[162] - Basic earnings per common share for Q1 2023 was $0.73, unchanged from Q1 2022, while diluted earnings per share also remained at $0.73[162] - Income before income taxes for Q1 2023 was $20,401,000, compared to $18,736,000 in Q1 2022, which is an increase of 9%[162] Cash Flow and Investments - Net cash provided by operating activities was $4,814,000 for the three months ended March 31, 2023, compared to $3,788,000 for the same period in 2022, reflecting an increase of approximately 27%[10] - The net cash used by investing activities was $16,606,000 for the three months ended March 31, 2023, significantly lower than $300,551,000 in the same period of 2022, indicating a reduction in cash outflow[10] - The total cash and cash equivalents at the end of the period were $188,593,000, down from $404,974,000 at the end of March 31, 2022, representing a decrease of about 53.5%[10] Credit Losses and Loan Quality - The provision for credit loss expense was $1,290,000 for the three months ended March 31, 2023, down from $1,643,000 in the same period of 2022, indicating a decrease of about 21.5%[10] - The allowance for credit losses totaled $20.989 billion, with $13.921 billion in loans receivable not past due, indicating a significant portion of the portfolio remains healthy[36] - The aging of past-due loans receivable showed a total of $12.208 million in past-due loans, with $4.262 billion in total loans receivable, highlighting a past-due ratio of approximately 0.29%[36] - The Corporation reported no modified loans and leases that had a payment default during the three months ended March 31, 2023, suggesting effective risk management practices[39] - The allowance for unfunded commitments included in the provision for credit losses was $59 thousand for the three months ended March 31, 2023, compared to $586 thousand for the same period in 2022, showing a significant decrease of approximately 90%[64] Loan Portfolio and Composition - Total loans receivable increased to $4,301,297 thousand as of March 31, 2023, compared to $4,275,178 thousand on December 31, 2022, reflecting a growth of 0.6%[199] - Residential mortgages secured by first liens accounted for 22.1% of total loans, increasing from 22.0% in the previous quarter, with a total of $949,691 thousand[199] - Non-owner occupied, nonfarm nonresidential properties represented 19.6% of total loans, up from 18.6% in the prior quarter, totaling $841,486 thousand[199] - The total past-due loans for residential mortgages secured by first liens amounted to $3.615 million, with a total of $942.531 million in residential mortgages[36] - Overall, the company demonstrated a stable loan portfolio with slight shifts in specific segments, indicating a cautious but positive outlook for future performance[199] Market and Economic Conditions - The Corporation's stock price and market capitalization decreased due to economic uncertainty and market volatility[186] - The Corporation's financial performance for the three months ended March 31, 2023, is not necessarily indicative of the full year results[183] - The Corporation is evaluating the impact of new accounting standards effective January 1, 2024, which may affect its consolidated financial statements[22] Other Financial Metrics - Total interest and dividend income for Q1 2023 was $66,640,000, a 44% increase from $46,254,000 in Q1 2022[162] - Non-interest income decreased to $8,042,000 in Q1 2023 from $9,654,000 in Q1 2022, representing a decline of 17%[162] - Total non-interest expenses rose to $33,990,000 in Q1 2023, compared to $31,892,000 in Q1 2022, marking a 7% increase[162] - The Corporation's total debt securities at amortized cost and fair value as of March 31, 2023, amounted to $9,416 million, a decrease from $9,615 million as of December 31, 2022[130]