CNB Financial Corporation Reports Second Quarter 2025 Results

Core Insights - CNB Financial Corporation reported net income of $12.9 million, or $0.61 per diluted share, for the three months ended June 30, 2025, reflecting an increase from $10.4 million, or $0.50 per diluted share, for the previous quarter [4][5] - The Corporation's total loans reached $4.7 billion as of June 30, 2025, marking a quarterly increase of $113.7 million, or 2.50% [4][5] - Total deposits were $5.5 billion at June 30, 2025, with a quarterly increase of $7.0 million, or 0.13% [4][5] - The net interest margin improved to 3.60% for the three months ended June 30, 2025, compared to 3.38% for the previous quarter [4][5] - Nonperforming assets decreased to approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, down from $56.1 million, or 0.89% of total assets, at March 31, 2025 [10][31] - The Corporation's total shareholders' equity increased to $637.3 million as of June 30, 2025, representing a 2.05% increase from the previous quarter [31] Financial Performance - Earnings for the six months ended June 30, 2025, were $23.3 million, or $1.10 per diluted share, with an increase in net interest income contributing to this growth [4][5] - The annualized return on average equity was 8.83% for the three months ended June 30, 2025, up from 7.52% for the previous quarter [17][19] - Total revenue for the three months ended June 30, 2025, was $61.2 million, an increase from $56.9 million in the previous quarter [20][21] Loan and Deposit Growth - The loan portfolio increased by $113.7 million, or 2.50%, compared to the previous quarter, driven by growth in various banking divisions [5][12] - Total deposits increased by $7.0 million, or 0.13%, with a year-over-year increase of $356.2 million, or 6.97% [5][12] Asset Quality - The allowance for credit losses was 1.02% of total loans as of June 30, 2025, slightly down from 1.03% in the previous quarter [31] - Net loan charge-offs for the three months ended June 30, 2025, were $3.3 million, or 0.28% of average total loans, compared to $1.4 million, or 0.13%, in the previous quarter [31] Capital and Regulatory Ratios - The Corporation's ratio of common shareholders' equity to total assets was 9.17% as of June 30, 2025, compared to 9.00% at March 31, 2025 [31] - Regulatory capital ratios continue to exceed "well-capitalized" levels as of June 30, 2025 [31][6] Recent Events - The Corporation is set to close its acquisition of ESSA Bancorp, Inc. on July 23, 2025, which is expected to enhance its earning-asset base and market footprint [8][30][32]