Get Cash Back and $0 Commissions
+ The Power of TradeStation
Globe Newswire 22-Jan-2020 5:04 PM
CLEARFIELD, Pa., Jan. 22, 2020 (GLOBE NEWSWIRE) -- CNB Financial Corporation ("CNB") (NASDAQ:CCNE), the parent company of CNB Bank, today announced its earnings for the quarter and year ended December 31, 2019.
Joseph B. Bower, Jr., President and CEO, stated, "Our fourth quarter results continued to demonstrate the strength of our diversified business model. As a result of our focus on our customers, we delivered another quarter of strong growth, while maintaining a consistent credit quality."
Earnings are the result of organic growth
Balance sheet growth reflects the strength of our diversified markets
and focus on core customer acquisition strategies
Performance ratios reflect continued focus on profitability
Revenue reflects organic growth
Non-Interest Expense reflects organic growth and a focus on efficiency
Income taxes
Asset quality reflects strength in underwriting and risk profile
Capital provides source of strength
About CNB Financial Corporation
CNB Financial Corporation is a financial holding company with consolidated assets of approximately $3.8 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division and 42 full-service offices in Pennsylvania, Ohio, and New York. CNB Bank's divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in northwest Pennsylvania and northeast Ohio; FCBank, based in Worthington, Ohio, with offices in central Ohio; and BankOnBuffalo, based in Buffalo, New York, with offices in northern New York. CNB Bank is headquartered in Clearfield, Pennsylvania, with offices in central and north central Pennsylvania. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to CNB's financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond CNB's control). Forward-looking statements often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future conditional verbs such as "may," "will," "should," "would" and "could." CNB's actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of and the forward-looking statement disclaimers in CNB's annual and quarterly reports.
The forward-looking statements are based upon management's beliefs and assumptions and are made as of the date of this press release. CNB undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.
Financial Tables
The following tables supplement the financial highlights described previously for CNB. All dollars are stated in thousands, except share and per share data.
(unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
(unaudited) | ||||||||||||||||||
% | % | |||||||||||||||||
2019 | 2018 | change | 2019 | 2018 | change | |||||||||||||
Income Statement | ||||||||||||||||||
Interest income | $ | 40,608 | $ | 36,344 | 11.7 | % | $ | 155,728 | $ | 131,870 | 18.1 | % | ||||||
Interest expense | 10,863 | 8,228 | 32.0 | % | 39,530 | 26,950 | 46.7 | % | ||||||||||
Net interest income | 29,745 | 28,116 | 5.8 | % | 116,198 | 104,920 | 10.7 | % | ||||||||||
Provision for loan losses | 812 | 1,441 | (43.7 | )% | 6,024 | 6,072 | (0.8 | )% | ||||||||||
Net interest income after provision for loan losses | 28,933 | 26,675 | 8.5 | % | 110,174 | 98,848 | 11.5 | % | ||||||||||
Non-interest income | ||||||||||||||||||
Service charges on deposit accounts | 1,676 | 1,657 | 1.1 | % | 6,402 | 5,759 | 11.2 | % | ||||||||||
Other service charges and fees | 775 | 760 | 2.0 | % | 2,930 | 2,833 | 3.4 | % | ||||||||||
Wealth and asset management fees | 1,145 | 1,021 | 12.1 | % | 4,627 | 4,172 | 10.9 | % | ||||||||||
Net realized gains on available-for-sale securities | 0 | 0 | NA | 148 | 0 | NA | ||||||||||||
Net realized and unrealized gains (losses) on trading securities | 700 | (1,123 | ) | NA | 1,888 | (451 | ) | NA | ||||||||||
Realized gains on Visa Class B shares | 0 | 0 | NA | 463 | 0 | NA | ||||||||||||
Mortgage banking | 395 | 218 | 81.2 | % | 1,412 | 1,019 | 38.6 | % | ||||||||||
Bank owned life insurance | 315 | 335 | (6.0 | )% | 1,317 | 1,408 | (6.5 | )% | ||||||||||
Card processing and interchange income | 1,196 | 1,121 | 6.7 | % | 4,641 | 4,261 | 8.9 | % | ||||||||||
Other | 552 | 444 | 24.3 | % | 2,147 | 1,722 | 24.7 | % | ||||||||||
Total non-interest income | 6,754 | 4,433 | 52.4 | % | 25,975 | 20,723 | 25.3 | % | ||||||||||
Non-interest expenses | ||||||||||||||||||
Salaries and benefits | 12,365 | 10,761 | 14.9 | % | 46,405 | 41,856 | 10.9 | % | ||||||||||
Net occupancy expense of premises | 2,977 | 2,501 | 19.0 | % | 11,221 | 10,281 | 9.1 | % | ||||||||||
FDIC insurance premiums | 350 | 359 | (2.5 | )% | 1,252 | 1,396 | (10.3 | )% | ||||||||||
Core Deposit Intangible amortization | 97 | 180 | (46.1 | )% | 567 | 898 | (36.9 | )% | ||||||||||
Card processing and interchange expenses | 711 | 695 | 2.3 | % | 2,891 | 2,834 | 2.0 | % | ||||||||||
Other (5) | 6,405 | 5,510 | 16.2 | % | 25,172 | 22,077 | 14.0 | % | ||||||||||
Total non-interest expenses | 22,905 | 20,006 | 14.5 | % | 87,508 | 79,342 | 10.3 | % | ||||||||||
Income before income taxes | 12,782 | 11,102 | 15.1 | % | 48,641 | 40,229 | 20.9 | % | ||||||||||
Income tax expense | 2,298 | 2,157 | 6.5 | % | 8,560 | 6,510 | 31.5 | % | ||||||||||
Net income | $ | 10,484 | $ | 8,945 | 17.2 | % | $ | 40,081 | $ | 33,719 | 18.9 | % | ||||||
Average diluted shares outstanding | 15,178,128 | 15,200,651 | 15,164,280 | 15,210,344 | ||||||||||||||
Diluted earnings per share | $ | 0.69 | $ | 0.59 | 16.9 | % | $ | 2.63 | $ | 2.21 | 19.0 | % | ||||||
Cash dividends per share | $ | 0.17 | $ | 0.17 | 0.0 | % | $ | 0.68 | $ | 0.67 | 1.5 | % | ||||||
Payout ratio | 25 | % | 29 | % | 26 | % | 30 | % | ||||||||||
(unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
(unaudited) | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Average Balances (3) | ||||||||||||||||||
Loans, net of unearned income | $ | 2,764,173 | $ | 2,447,960 | 2,630,110 | 2,328,344 | ||||||||||||
Investment securities | 547,386 | 544,116 | 540,127 | 482,335 | ||||||||||||||
Total earning assets | 3,390,416 | 2,992,076 | 3,194,911 | 2,810,679 | ||||||||||||||
Total assets | 3,616,347 | 3,187,503 | 3,413,737 | 3,008,302 | ||||||||||||||
Non interest-bearing deposits | 373,289 | 352,488 | 360,208 | 327,014 | ||||||||||||||
Interest-bearing deposits | 2,588,202 | 2,208,770 | 2,402,361 | 2,043,030 | ||||||||||||||
Shareholders' equity | 301,605 | 257,366 | 285,324 | 250,496 | ||||||||||||||
Tangible shareholders' equity (1) | 262,656 | 217,802 | 246,161 | 210,590 | ||||||||||||||
Average Yields (3) | ||||||||||||||||||
Loans, net of unearned income | 5.28 | % | 5.28 | % | 5.35 | % | 5.11 | % | ||||||||||
Investment securities | 2.88 | % | 2.93 | % | 2.99 | % | 2.91 | % | ||||||||||
Total earning assets | 4.81 | % | 4.85 | % | 4.93 | % | 4.73 | % | ||||||||||
Interest-bearing deposits | 1.32 | % | 1.04 | % | 1.26 | % | 0.84 | % | ||||||||||
Interest-bearing liabilities | 1.49 | % | 1.28 | % | 1.45 | % | 1.12 | % | ||||||||||
Performance Ratios (annualized) | ||||||||||||||||||
Return on average assets (3) | 1.15 | % | 1.11 | % | 1.17 | % | 1.12 | % | ||||||||||
Return on average assets, net of merger costs (1) (3) | 1.16 | % | 1.11 | % | 1.18 | % | 1.12 | % | ||||||||||
Return on average equity (3) | 13.79 | % | 13.79 | % | 14.05 | % | 13.46 | % | ||||||||||
Return on average equity, net of merger costs (1) (3) | 13.97 | % | 13.79 | % | 14.09 | % | 13.46 | % | ||||||||||
Return on average tangible equity (1) (3) | 15.84 | % | 16.29 | % | 16.28 | % | 16.01 | % | ||||||||||
Return on average tangible equity, net of merger costs (1) (3) | 16.04 | % | 16.29 | % | 16.34 | % | 16.01 | % | ||||||||||
Net interest margin, fully tax equivalent basis (3) | 3.54 | % | 3.76 | % | 3.69 | % | 3.77 | % | ||||||||||
Efficiency Ratio | 61.52 | % | 59.77 | % | 60.19 | % | 61.37 | % | ||||||||||
Efficiency Ratio, net of merger costs (1) | 61.06 | % | 59.77 | % | 60.07 | % | 61.37 | % | ||||||||||
Net Loan Charge-Offs | ||||||||||||||||||
CNB Bank net loan charge-offs | $ | 1,043 | $ | 3,720 | $ | 4,384 | $ | 4,156 | ||||||||||
Holiday Financial net loan charge-offs | 503 | 527 | 1,871 | 1,905 | ||||||||||||||
Total net loan charge-offs | $ | 1,546 | $ | 4,247 | $ | 6,255 | $ | 6,061 | ||||||||||
Net loan charge-offs / average loans (3) | 0.22 | % | 0.69 | % | 0.24 | % | 0.26 | % |
(unaudited) | (unaudited) | |||||||||||||
December 31, | September 30, | December 31, | % change versus | |||||||||||
2019 | 2019 | 2018 | 9/30/19 | 12/31/18 | ||||||||||
Ending Balance Sheet | ||||||||||||||
Loans, net of unearned income | $ | 2,804,035 | $ | 2,749,502 | $ | 2,474,557 | 2.0 | % | 13.3 | % | ||||
Loans held for sale | 930 | 1,279 | 367 | (27.3) | % | 153.4 | % | |||||||
Investment securities | 552,122 | 538,955 | 524,649 | 2.4 | % | 5.2 | % | |||||||
FHLB and other equity interests | 11,354 | 12,383 | 13,183 | (8.3) | % | (13.9) | % | |||||||
Other earning assets | 150,601 | 2,437 | 3,161 | 6,079.8 | % | 4,664.3 | % | |||||||
Total earning assets | 3,519,042 | 3,304,556 | 3,015,917 | 6.5 | % | 16.7 | % | |||||||
Allowance for loan losses | (19,473 | ) | (20,207 | ) | (19,704 | ) | (3.6) | % | (1.2) | % | ||||
Goodwill | 38,730 | 38,730 | 38,730 | 0.0 | % | 0.0 | % | |||||||
Core deposit intangible | 160 | 257 | 727 | (37.7) | % | (78.0) | % | |||||||
Other assets | 225,200 | 217,834 | 185,851 | 3.4 | % | 21.2 | % | |||||||
Total assets | $ | 3,763,659 | $ | 3,541,170 | $ | 3,221,521 | 6.3 | % | 16.8 | % | ||||
Non interest-bearing deposits | $ | 382,259 | $ | 370,761 | $ | 356,797 | 3.1 | % | 7.1 | % | ||||
Interest-bearing deposits | 2,720,068 | 2,504,834 | 2,253,989 | 8.6 | % | 20.7 | % | |||||||
Total deposits | 3,102,327 | 2,875,595 | 2,610,786 | 7.9 | % | 18.8 | % | |||||||
Borrowings | 227,907 | 248,101 | 245,117 | (8.1) | % | (7.0) | % | |||||||
Subordinated debt | 70,620 | 70,620 | 70,620 | 0.0 | % | 0.0 | % | |||||||
Other liabilities | 57,839 | 49,821 | 32,168 | 16.1 | % | 79.8 | % | |||||||
Common stock | 0 | 0 | 0 | NA | NA | |||||||||
Additional paid in capital | 99,335 | 97,690 | 97,602 | 1.7 | % | 1.8 | % | |||||||
Retained earnings | 201,503 | 193,612 | 171,780 | 4.1 | % | 17.3 | % | |||||||
Treasury stock | (2,811 | ) | (2,799 | ) | (2,556 | ) | 0.4 | % | 10.0 | % | ||||
Accumulated other comprehensive income (loss) | 6,939 | 8,530 | (3,996 | ) | (18.7) | % | NA | |||||||
Total shareholders' equity | 304,966 | 297,033 | 262,830 | 2.7 | % | 16.0 | % | |||||||
Total liabilities and shareholders' equity | $ | 3,763,659 | $ | 3,541,170 | $ | 3,221,521 | 6.3 | % | 16.8 | % | ||||
Ending shares outstanding | 15,247,985 | 15,195,571 | 15,207,281 | |||||||||||
Book value per share | $ | 20.00 | $ | 19.55 | $ | 17.28 | 2.3 | % | 15.7 | % | ||||
Tangible book value per share (1) | $ | 17.45 | $ | 16.98 | $ | 14.69 | 2.8 | % | 18.8 | % | ||||
Capital Ratios | ||||||||||||||
Tangible common equity / tangible assets (1) | 7.14 | % | 7.37 | % | 7.02 | % | ||||||||
Tier 1 leverage ratio | 7.86 | % | 7.95 | % | 7.87 | % | ||||||||
Common equity tier 1 ratio | 9.32 | % | 9.28 | % | 9.50 | % | ||||||||
Tier 1 risk based ratio | 10.03 | % | 10.02 | % | 10.33 | % | ||||||||
Total risk based ratio | 12.51 | % | 12.61 | % | 13.21 | % | ||||||||
Asset Quality (4) | ||||||||||||||
Non-accrual loans | $ | 16,737 | $ | 14,809 | $ | 14,262 | ||||||||
Loans 90+ days past due and accruing | 61 | 550 | 887 | |||||||||||
Total non-performing loans | 16,798 | 15,359 | 15,149 | |||||||||||
Other real estate owned | 1,633 | 1,473 | 418 | |||||||||||
Total non-performing assets | $ | 18,431 | $ | 16,832 | $ | 15,567 | ||||||||
Loans modified in a troubled debt restructuring (TDR): | ||||||||||||||
Performing TDR loans | $ | 7,359 | $ | 7,746 | $ | 8,201 | ||||||||
Non-performing TDR loans (2) | 2,443 | 2,453 | 6,425 | |||||||||||
Total TDR loans | $ | 9,802 | $ | 10,199 | $ | 14,626 | ||||||||
Non-performing assets / Loans + OREO | 0.66 | % | 0.61 | % | 0.63 | % | ||||||||
Non-performing assets / Total assets | 0.49 | % | 0.48 | % | 0.48 | % | ||||||||
Allowance for loan losses / Loans | 0.69 | % | 0.73 | % | 0.80 | % | ||||||||
(1) - The Company uses non-GAAP (Generally Accepted Accounting Principles) financial information in its analysis of the Company's performance. The Company's management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Company's management believes that investors may use these non-GAAP measures to analyze the Company's financial performance without the impact of unusual items or events that may obscure trends in the Company's underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. For a reconciliation of these and other non-GAAP measures to their comparable GAAP measures, see pages. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data). | ||||||||||||||
(2) - Nonperforming TDR loans are also included in the balance of non-accrual loans in the previous table. | ||||||||||||||
(3) - The average balances, average yields, performance ratios and total net loan charge-offs / average loans annualized returns calculation were refined. Prior periods were adjusted to be comparative to the current period. The impact of the change was immaterial. | ||||||||||||||
(4) - The asset quality table data was refined to reflect deferred fees and costs as well as interest paid to principal. Prior periods were adjusted to be comparative to the current period. The impact of the change was immaterial. | ||||||||||||||
(5) - Includes $170 in merger related expenses. | ||||||||||||||
Non-GAAP Reconciliations (1): | ||||||||||||||
(unaudited) | (unaudited) | |||||||||||||
December 31, | September 30, | December 31, | ||||||||||||
2019 | 2019 | 2018 | ||||||||||||
Shareholders' equity | $ | 304,966 | $ | 297,033 | $ | 262,830 | ||||||||
Less goodwill | 38,730 | 38,730 | 38,730 | |||||||||||
Less core deposit intangible | 160 | 257 | 727 | |||||||||||
Tangible common equity | $ | 266,076 | $ | 258,046 | $ | 223,373 | ||||||||
Total assets | $ | 3,763,659 | $ | 3,541,170 | $ | 3,221,521 | ||||||||
Less goodwill | 38,730 | 38,730 | 38,730 | |||||||||||
Less core deposit intangible | 160 | 257 | 727 | |||||||||||
Tangible assets | $ | 3,724,769 | $ | 3,502,183 | $ | 3,182,064 | ||||||||
Ending shares outstanding | 15,247,985 | 15,195,571 | 15,207,281 | |||||||||||
Tangible book value per share | $ | 17.45 | $ | 16.98 | $ | 14.69 | ||||||||
Tangible common equity/Tangible assets | 7.14 | % | 7.37 | % | 7.02 | % |
Non-GAAP Reconciliations (1): | ||||||||||||||
(unaudited) | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
(unaudited) | ||||||||||||||
Calculation of adjusted efficiency ratio, net of merger costs: | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Non-interest expense | $ | 22,905 | $ | 20,006 | $ | 87,508 | $ | 79,342 | ||||||
Less: core deposit intangible amortization | 97 | 180 | 567 | 898 | ||||||||||
Less: merger costs | 170 | 0 | 170 | 0 | ||||||||||
Adjusted non-interest expense (non-GAAP) | $ | 22,638 | $ | 19,826 | $ | 86,771 | $ | 78,444 | ||||||
Non-interest income | $ | 6,754 | $ | 4,433 | $ | 25,975 | $ | 20,723 | ||||||
Net interest income | $ | 29,745 | $ | 28,116 | $ | 116,198 | $ | 104,920 | ||||||
Less: tax exempt investment and loan income, net of TEFRA (non-GAAP) | 1,731 | 1,762 | 6,664 | 6,572 | ||||||||||
Add: tax exempt investment and loan income (non-GAAP) (tax-equivalent) | 2,306 | 2,384 | 8,946 | 8,759 | ||||||||||
Adjusted net interest income (non-GAAP) | 30,320 | 28,738 | 118,480 | 107,107 | ||||||||||
Adjusted net revenue (non-GAAP) (tax-equivalent) | $ | 37,074 | $ | 33,171 | $ | 144,455 | $ | 127,830 | ||||||
Adjusted efficiency ratio, net of merger costs | 61.06 | % | 59.77 | % | 60.07 | % | 61.37 | % | ||||||
Calculation of adjusted return on average total assets, net of merger costs: | ||||||||||||||
Net Income | $ | 10,484 | $ | 8,945 | $ | 40,081 | $ | 33,719 | ||||||
Add: merger costs (net of tax) | 134 | 0 | 134 | 0 | ||||||||||
Adjusted net income (non-GAAP)(net of tax) | $ | 10,618 | $ | 8,945 | $ | 40,215 | $ | 33,719 | ||||||
Average total assets | $ | 3,616,347 | $ | 3,187,503 | $ | 3,413,737 | $ | 3,008,302 | ||||||
Adjusted return on average total assets, net of merger costs (non-GAAP)(annualized where applicable) | 1.16 | % | 1.11 | % | 1.18 | % | 1.12 | % | ||||||
Calculation of adjusted return on average equity, net of merger costs: | ||||||||||||||
Net Income | $ | 10,484 | $ | 8,945 | $ | 40,081 | $ | 33,719 | ||||||
Add: merger costs (net of tax) | 134 | 0 | 134 | 0 | ||||||||||
Adjusted net income (non-GAAP)(net of tax) | $ | 10,618 | $ | 8,945 | $ | 40,215 | $ | 33,719 | ||||||
Average shareholders' equity | $ | 301,605 | $ | 257,366 | $ | 285,324 | $ | 250,496 | ||||||
Adjusted return on average equity, net of merger costs (non-GAAP)(annualized where applicable) | 13.97 | % | 13.79 | % | 14.09 | % | 13.46 | % | ||||||
Calculation of adjusted return on average tangible equity, net of merger costs: | ||||||||||||||
Net Income | $ | 10,484 | $ | 8,945 | $ | 40,081 | $ | 33,719 | ||||||
Add: merger costs (net of tax) | 134 | 0 | 134 | 0 | ||||||||||
Adjusted net income (non-GAAP)(net of tax) | $ | 10,618 | $ | 8,945 | $ | 40,215 | $ | 33,719 | ||||||
Average tangible shareholders' equity | $ | 262,656 | $ | 217,802 | $ | 246,161 | $ | 210,590 | ||||||
Adjusted return on average tangible equity, net of merger costs (non-GAAP)(annualized where applicable) | 16.04 | % | 16.29 | % | 16.34 | % | 16.01 | % |
Contact: Tito L. Lima Treasurer (814) 765-9621