CNB Financial(CCNE) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2023, was $13,954 million, compared to $13,727 million for the same period last year, reflecting a growth of 1.7%[10] - Comprehensive income for the three months ended September 30, 2023, was $10,094 million, compared to a loss of $7,916 million in the prior year[12] - Net income for the period was reported at $39,511, reflecting a significant increase compared to previous periods[19] - Net income for the nine months ended September 30, 2024, was $39,511, down from $44,043 in the same period of 2023, representing a decrease of approximately 12.4%[20] - Basic earnings per common share for the three months ended September 30, 2023, was $0.61, compared to $0.60 for the same period last year, reflecting a growth of 1.7%[10] - Diluted earnings per common share for the nine months ended September 30, 2024, was $1.72, down from $1.94 for the same period in 2023[176] Asset and Liability Management - Total assets increased to $6,014,844 million as of September 30, 2024, compared to $5,752,957 million at December 31, 2023, representing a growth of 4.57%[9] - The company reported a total liabilities figure of $5,408,481 million, up from $5,181,710 million, which is an increase of 4.38%[9] - The total shareholders' equity rose to $606,363 million, compared to $571,247 million, reflecting a growth of 6.15%[9] - Cash and cash equivalents at the end of the period increased to $360,909 from $182,585, representing a growth of approximately 97.5%[20] - The allowance for credit losses was $46,644 million, slightly up from $45,832 million, indicating a 1.77% increase[9] Loan Portfolio - Total net loans receivable as of September 30, 2024, amounted to $4,591,908 million, an increase from $4,468,476 million as of December 31, 2023, representing a growth of approximately 2.8%[68] - The total loans receivable net of allowance for credit losses was $4,545,264 million as of September 30, 2024, compared to $4,422,644 million at the end of December 31, 2023[68] - The commercial and industrial loans category totaled $719,441 million as of September 30, 2024, accounting for 15.7% of total loans, slightly down from 16.3% at December 31, 2023[68] - Residential mortgages secured by first liens reached $1,012,020 million, representing 22.0% of total loans, compared to 22.5% as of December 31, 2023[68] - Nonaccrual loans totaled $39.855 million as of September 30, 2024, with $31.036 million having no allowance for credit loss[80] Credit Losses and Provisions - Provision for credit loss expense was $2,381 million, significantly higher than $1,056 million in the prior year, indicating an increase of 125.5%[10] - The provision for credit losses on loans receivable for the three months ended September 30, 2024, was $2,332 million, reflecting a significant increase compared to the previous period[72] - The allowance for credit losses increased by $1.1 million and $812 thousand for the three and nine months ended September 30, 2024, primarily due to growth in the loan portfolio and increased unemployment rate forecast[78] - Significant uncertainty regarding the economy persists due to inflation, elevated interest rates, and geopolitical conflicts[78] Deposits and Funding - Total deposits reached $5,216,949 million, an increase of 4.37% from $4,998,750 million[9] - Noninterest-bearing demand deposits grew to $841,292 million, up 15.4% from $728,881 million[9] - Interest-bearing demand deposits decreased to $681,056 million, down 15.2% from $803,093 million[9] - The Corporation had brokered deposits of $185 million as of September 30, 2024, down from $208.3 million at December 31, 2023, a decline of about 11.1%[143] Investments and Securities - The Corporation's total debt securities available-for-sale (AFS) totaled $422.222 billion with unrealized losses of $43.717 billion as of September 30, 2024[49] - The fair value of residential and multi-family mortgage securities in the AFS category was $223.951 billion, reflecting unrealized losses of $28.071 billion[49] - The Corporation's total fair value of debt securities at September 30, 2024, was $378.965 billion, reflecting a significant portion in U.S. Government sponsored entities[49] - Total Securities Available-For-Sale amounted to $378.965 million as of September 30, 2024, with $365.878 million classified under observable inputs (Level 2)[194] Operational Efficiency - Total non-interest expenses rose to $38,784 million, up from $36,914 million, which is an increase of 5.0%[10] - The corporation's management believes there is no impairment of goodwill as of September 30, 2024, following an evaluation of current conditions[30] - The Corporation's financial performance reflects a focus on managing loan portfolios effectively while navigating market conditions[129] Lease and Asset Management - Operating lease assets increased to $37,419 million as of September 30, 2024, compared to $35,699 million at December 31, 2023, reflecting a growth of approximately 4.8%[135] - Total leased liabilities rose to $39,907 million as of September 30, 2024, from $37,944 million at December 31, 2023, indicating an increase of about 5.2%[135] - The corporation's lease agreements include options for renewal, which are considered in the lease term if it is reasonably certain they will be exercised, indicating flexibility in lease management[134]