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 second quarter of 2025[8] - Total revenue for the three months ended September 30, 2025, was $77.7 million, an increase of $16.5 million, or 27.00%, from $61.2 million for the three months ended June 30, 2025[22] - Net income available to common shareholders decreased to $5,969,000 in Q3 2025 from $12,881,000 in Q2 2025 and $12,878,000 in Q3 2024[35] - Net income for Q3 2025 was $7,045,000, a decrease of 49.6% from $13,956,000 in Q2 2025 and a slight increase from $13,954,000 in Q3 2024[48] Loan and Deposit 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 deposits reached $6.9 billion, with organic deposit growth of $70.2 million, or 1.28% (5.10% annualized), compared to the previous quarter[8] - Total loans and loans held for sale increased to $5,971,441,000 in Q3 2025 from $4,668,051,000 in Q2 2025 and $4,536,702,000 in Q3 2024, reflecting strong loan growth[36] - Total deposits reached $6,900,267 thousand, an increase of 26.2% from $5,467,082 thousand in the previous quarter[37] Asset Quality - Total nonperforming assets were 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[29] - Net loan charge-offs for Q3 2025 were $957 thousand, or 0.06% of average total loans, down from $3.3 million, or 0.28%, in Q2 2025[29] Efficiency and Profitability - 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; excluding merger costs, it was 57.67%[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; excluding merger-related expenses, it was 12.05%[22] - Return on average assets for Q3 2025 was 0.36%, down from 0.90% in Q2 2025 and 0.94% in Q3 2024, indicating a decline in profitability relative to assets[36] Capital and Shareholder Value - 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 was 9.53% as of September 30, 2025, compared to 9.17% in Q2 2025[32] - Cash dividends per common share remained stable at $0.18 for Q3 2025, consistent with Q2 2025 and Q3 2024, reflecting a commitment to returning value to shareholders[35] Acquisition Impact - The acquisition of ESSA Bancorp added $2.1 billion in total assets, including $1.7 billion in loans and $1.5 billion in deposits, expanding the branch network by 20 offices[3] - The ESSA acquisition is expected to yield realized cost savings and earnings accretion that meet or exceed pre-merger expectations[11] 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 27.5% from $39.6 million in Q2 2025; excluding merger costs, it was $46.0 million, a 17.17% increase from Q2 2025[28]
CNB FINL PA REPS(CCNEP) - 2025 Q3 - Quarterly Results