CNB Financial(CCNE) - 2025 Q3 - Quarterly Results

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]