CNB Financial Corporation Reports Third Quarter 2024 Results
CNB Financial Corporation, the parent company of CNB Bank, has released its financial results for the third quarter of 2024. The company, headquartered in Clearfield, Pennsylvania, operates through its principal subsidiary, CNB Bank, and various divisions across Pennsylvania, Ohio, New York, and Virginia.
Financial Highlights
For the three months ended September 30, 2024, CNB Financial Corporation reported a net income available to common shareholders of $12.9 million, or $0.61 per diluted share, up from $11.9 million, or $0.56 per diluted share, in the previous quarter. The increase was driven by higher net interest income and non-interest income, partially offset by increased non-interest expenses.
For the nine months ended September 30, 2024, earnings were $36.3 million, or $1.72 per diluted share, compared to $40.8 million, or $1.94 per diluted share, for the same period in 2023. The year-over-year decrease was primarily due to higher deposit costs.
Net interest income for the third quarter was $47.5 million, an increase from $45.7 million in the previous quarter. The net interest margin was 3.43%, up from 3.36% in the second quarter of 2024.
Business and Operational Highlights
CNB Financial Corporation saw significant growth in its loan portfolio, with total loans reaching $4.5 billion as of September 30, 2024, excluding syndicated loans. This represents a quarterly increase of $96.7 million and a year-over-year increase of $153.4 million. The growth was driven by commercial and industrial growth in the Erie and Columbus markets, as well as new commercial customer relationships in Roanoke.
Total deposits were $5.2 billion, reflecting a quarterly increase of $106.1 million and a year-over-year increase of $214.2 million. The increase was primarily due to higher noninterest-bearing business deposits and retail savings deposits.
Strategic Initiatives and Corporate Developments
During the third quarter, CNB Financial Corporation repositioned $135.0 million of brokered deposits from savings to certificates of deposits, resulting in an estimated annual interest expense savings of $2.5 million. The company also reported a decrease in syndicated lending balances year-over-year, focusing more on organic loan growth from in-market customer relationships.
The company maintained a strong liquidity position with $282.0 million of cash equivalents and collective contingent liquidity resources of $4.5 billion.
Management's Perspective
Michael Peduzzi, President and CEO of CNB Financial Corporation, commented on the positive quarterly results, highlighting the company's strong loan and investment underwriting, disciplined loan and deposit pricing, and solid risk management practices. He emphasized the company's focus on controlling staffing levels and overhead costs while expanding the use of key sales and customer experience technologies.
Future Outlook
While the report did not provide specific forward-looking statements, the company's management remains optimistic about continued growth and operational efficiency. The focus will be on maintaining a motivated and engaged workforce, delivering products and services that achieve sustainable success for clients and investors.
SEC Filing: CNB FINANCIAL CORP/PA [ CCNE ] - 8-K - Oct. 21, 2024