CNB Financial Corporation Reports Third Quarter 2025 Results

Core Insights - CNB Financial Corporation reported earnings of $6.0 million, or $0.22 per diluted share, for the three months ended September 30, 2025, a decrease from $12.9 million, or $0.61 per diluted share, for the previous quarter [6][7] - The acquisition of ESSA Bancorp, completed on July 23, 2025, added total assets of $2.1 billion, including $1.7 billion in loans and $1.5 billion in deposits, expanding CNB Bank's branch network by 20 offices [2][10] - Adjusted earnings for the third quarter of 2025 were $22.5 million, or $0.82 per diluted share, reflecting a 70.17% increase from the previous quarter [8][12] Financial Performance - Total revenue for the three months ended September 30, 2025, was $77.7 million, compared to $61.2 million for the previous quarter [22] - Net interest income increased to $67.1 million for the third quarter of 2025, up from $52.2 million in the second quarter [22] - The net interest margin was 3.69% for the third quarter of 2025, compared to 3.60% for the previous quarter [22] Loan and Deposit Growth - Total loans were $6.4 billion as of September 30, 2025, with organic loan growth of $90.8 million, or 1.95% for the quarter [8][12] - Total deposits reached $6.9 billion, with organic deposit growth of $70.2 million, or 1.28% for the quarter [8][12] - The increase in deposits was primarily driven by growth in Treasury Management-sourced business deposits [12] Credit Quality - Total nonperforming assets were approximately $40.4 million, or 0.49% of total assets, as of September 30, 2025, an increase from $30.4 million, or 0.48% of total assets, in the previous quarter [12][32] - Net loan charge-offs were $957 thousand, or 0.06% of average total loans, for the third quarter of 2025, down from $3.3 million, or 0.28% in the previous quarter [12][32] Capital and Equity - The Corporation's total shareholders' equity was $844.2 million as of September 30, 2025, an increase of 32.47% from the previous quarter [31] - The ratio of common shareholders' equity to total assets was 9.53% as of September 30, 2025, compared to 9.17% at June 30, 2025 [7][31] Strategic Initiatives - The acquisition of ESSA Bancorp is seen as a significant milestone, expanding CNB's asset base to over $8 billion and enhancing its operational scale [10][11] - The integration of ESSA's operations is progressing positively, with expected cost savings and earnings accretion meeting or exceeding pre-merger expectations [11][12]