Core Viewpoint - CNB Financial Corporation's wholly-owned subsidiary, CNB Bank, has become a state member bank regulated by the Federal Reserve, marking a significant milestone in its strategic growth and enhancing its regulatory framework [1][2]. Group 1: Regulatory Changes - CNB Bank became a state member bank of the Federal Reserve System effective February 12, 2026, while continuing to be regulated by the Pennsylvania Department of Banking and Securities [1]. - The transition to a state member bank is expected to provide a more efficient supervisory process for CNB Bank [2]. Group 2: Company Overview - CNB Financial Corporation has consolidated assets of approximately $8.4 billion and operates primarily through CNB Bank, which offers a full range of banking services [3]. - CNB Bank has a diverse operational structure with 79 offices across Pennsylvania, Ohio, New York, and Virginia, including various divisions such as ERIEBANK, FCBank, and Impressia Bank [3].

Core Viewpoint - CNB Financial (CCNE) reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.66 per share a year ago, representing an earnings surprise of +14.29% [1] Financial Performance - The company posted revenues of $87.16 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.63%, compared to $59.97 million in the same quarter last year [2] - Over the last four quarters, CNB has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - CNB shares have increased approximately 3.5% since the beginning of the year, outperforming the S&P 500, which gained 1.5% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.78 on revenues of $83.8 million, and for the current fiscal year, it is $3.45 on revenues of $347.7 million [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Northeast sector is currently in the top 22% of over 250 Zacks industries, suggesting a favorable environment for performance [8] - Northeast Community Bancorp (NECB), a peer in the same industry, is expected to report quarterly earnings of $0.85 per share, reflecting a year-over-year increase of +6.3% [9]

Financial Performance - Net income for Q4 2025 was $32.6 million, or $1.10 per diluted share, a significant increase from $6.0 million, or $0.22 per diluted share in Q3 2025, and $14.0 million, or $0.66 per diluted share in Q4 2024[4] - Adjusted earnings for Q4 2025, excluding merger-related expenses, were $25.8 million, or $0.87 per diluted share, reflecting a 14.74% increase from $22.5 million, or $0.82 per diluted share in Q3 2025[7] - For the full year 2025, adjusted earnings were $73.4 million, or $2.95 per diluted share, a 46.06% increase from $50.3 million, or $2.39 per diluted share in 2024[7] - Net income available to common shareholders for Q4 2025 was $32,573,000, a significant increase from $5,969,000 in Q3 2025, representing a growth of 444%[41] - Net income available to common shareholders for the twelve months ended December 31, 2025, was $61,829,000, representing a 22.9% increase from $50,273,000 in the previous year[34] Loan and Deposit Growth - Total loans reached $6.4 billion as of December 31, 2025, with organic loan growth of $26.6 million, or 0.42% (1.65% annualized) compared to Q3 2025[4] - Total deposits were $7.0 billion at December 31, 2025, with organic deposit growth of $122.1 million, or 2.21% (8.75% annualized) from Q3 2025[4] - The increase in loans for the full year was primarily driven by growth in the Ridge View Bank and BankOnBuffalo markets, with a total organic loan growth of $218.8 million, or 4.83% compared to December 31, 2024[7] - Total loans and loans held for sale increased to $6,489,706,000 for the three months ended December 31, 2025, up 9.3% from $5,971,441,000 in the previous quarter[35] - Total deposits as of December 31, 2025, reached $7,027,109,000, up from $6,900,267,000 in Q3 2025, indicating a growth of 1.84%[42] Asset Quality - Total nonperforming assets were approximately $42.2 million, or 0.50% of total assets, as of December 31, 2025, slightly up from $40.4 million, or 0.49% of total assets in Q3 2025[4] - Net loan charge-offs for the three months ended December 31, 2025, were $1.5 million, or 0.09% of average total loans, compared to $2.1 million, or 0.19%, for the same period in 2024[9] - The allowance for credit losses as a percentage of total loans was 1.03% as of December 31, 2025, compared to 1.05% as of September 30, 2025[27] - The provision for credit losses reflected a net reversal of $15.5 million for the three months ended December 31, 2025, compared to an expense of $18.5 million for the previous quarter[27] - The total nonperforming loans decreased to $39,887 thousand from $36,099 thousand in the previous quarter, indicating improved asset quality[37] Revenue and Income - Total revenue for the year ended December 31, 2025, was $282.2 million, an increase of 24.5% compared to $226.6 million for the year ended December 31, 2024[21] - Net interest income for the year ended December 31, 2025, was $242.0 million, reflecting a 29.11% increase from $187.5 million for the year ended December 31, 2024[21] - Total non-interest income for the year ended December 31, 2025, was $40.2 million, a slight increase from $39.1 million for the year ended December 31, 2024[21] - The yield on earning assets was 5.90% for the year ended December 31, 2025, an increase of 2 basis points from December 31, 2024[21] - Interest income for Q4 2025 was $115,550,000, compared to $108,645,000 in Q3 2025 and $83,678,000 in Q4 2024, showing a positive trend in revenue generation[44] Efficiency and Ratios - The efficiency ratio was 69.55% for the three months ended December 31, 2025, compared to 64.56% for the three months ended September 30, 2025[20] - The annualized return on average equity for the three months ended December 31, 2025, was 15.58%, up from 12.05% for the three months ended September 30, 2025[20] - The adjusted efficiency ratio (fully tax equivalent basis) improved to 58.80% for the three months ended December 31, 2025, from 57.67% in September 2025[46] - Return on average assets (GAAP) for the three months ended December 31, 2025, was 1.61%, up from 0.36% in the previous quarter[48] - The company reported a net interest spread of 3.32%, an increase from 3.13% in the previous quarter, highlighting improved efficiency in interest income generation[39] Shareholder Value - Book value per common share increased to $27.63 at December 31, 2025, from $26.68 at September 30, 2025, reflecting a 2.64% increase[5] - Cash dividends per common share remained stable at $0.18 for Q4 2025, consistent with the previous quarters[41] - The dividend payout ratio for Q4 2025 was 16%, a decrease from 82% in Q3 2025, indicating a more conservative approach to dividend distribution[41] - Shareholders' equity grew to $723,241 thousand, compared to $592,550 thousand in 2024, representing a 22.1% increase[40] - Tangible common equity reached $692,137 thousand in December 2025, compared to $657,900 thousand in September 2025 and $508,830 thousand in December 2024[45]

Core Insights - CNB Financial Corporation reported significant earnings growth for the fourth quarter and full year of 2025, driven by the acquisition of ESSA Bancorp and organic growth in loans and deposits [5][6][8] Financial Performance - Earnings for Q4 2025 were $32.6 million, or $1.10 per diluted share, a substantial increase from $6.0 million, or $0.22 per diluted share in Q3 2025, and $14.0 million, or $0.66 per diluted share in Q4 2024 [5][6] - Adjusted earnings for Q4 2025, excluding merger-related expenses, were $25.8 million, or $0.87 per diluted share, reflecting a 14.74% increase from Q3 2025 [6][7] - For the full year 2025, earnings totaled $61.8 million, or $2.49 per diluted share, with adjusted earnings of $73.4 million, or $2.95 per diluted share, marking a 46.06% increase from 2024 [7][8] Loan and Deposit Growth - Total loans reached $6.4 billion as of December 31, 2025, with organic loan growth of $26.6 million, or 0.42% for the quarter [6][7] - Total deposits were $7.0 billion, with organic deposit growth of $122.1 million, or 2.21% for the quarter [6][7] Net Interest Margin and Revenue - Net interest margin improved to 3.84% for Q4 2025, up from 3.69% in Q3 2025 [6][7] - Total revenue for Q4 2025 was $86.4 million, compared to $77.7 million in Q3 2025 and $59.4 million in Q4 2024 [6][7] Asset Quality - Total nonperforming assets were approximately $42.2 million, or 0.50% of total assets, as of December 31, 2025, a slight increase from $40.4 million in Q3 2025 [6][8] - The allowance for credit losses was 1.03% of total loans as of December 31, 2025, compared to 1.05% in Q3 2025 [28][29] Capital and Book Value - Book value per common share was $27.63 as of December 31, 2025, reflecting an increase from $26.68 in Q3 2025 [11][12] - Tangible book value per common share was $23.48, with an adjusted value of $23.88, indicating a 4.10% increase from Q3 2025 [11][12] Non-Interest Expenses - Total non-interest expense for Q4 2025 was $60.1 million, with an adjusted figure of $52.3 million excluding merger costs, reflecting a 13.66% increase from Q3 2025 [27][28] - The increase in non-interest expenses was primarily driven by higher salaries and benefits due to staffing additions from the ESSA acquisition [27][28]

Core Viewpoint - CNB Financial Corporation is preparing to release its fourth-quarter 2025 earnings, with analysts projecting earnings per share of $0.77 and revenue of $73.1 million for this period [1]. Financial Performance - In the previous quarter, CNB Financial reported earnings of $0.82 per share, exceeding the consensus estimate of $0.78 [2]. - The company achieved a return on equity of 10.38% and a net margin of 11.92% [2]. - Revenue for the previous quarter reached $77.7 million, surpassing analyst expectations of $68.5 million [2]. Valuation Metrics - CNB Financial has a price-to-earnings (P/E) ratio of 13.15 and a price-to-sales ratio of 2.03, indicating the market's valuation of the company's earnings and sales [3]. - The enterprise value to sales ratio is 2.29, and the enterprise value to operating cash flow ratio is 14.73, reflecting the company's valuation and cash flow efficiency [3]. Financial Health - The company maintains a debt-to-equity ratio of 0.22, indicating a low level of debt compared to its equity [4]. - The current ratio is notably high at 38.62, suggesting strong liquidity [4]. - Analysts project earnings per share of $2 for the current fiscal year and $4 for the next fiscal year [4].

Financial Performance - Total assets increased to $8,254,319 thousand as of September 30, 2025, up from $6,192,010 thousand at December 31, 2024, representing a growth of 33.4%[15] - Net income for Q3 2025 was $7,045,000, a decrease of 49.6% compared to $13,954,000 in Q3 2024[18] - Comprehensive income for Q3 2025 was $9,947,000, down from $24,048,000 in Q3 2024, reflecting a decline of 58.7%[18] - Net income for the nine months ended September 30, 2025, was $32,482 thousand, a decrease from $39,511 thousand in the same period of 2024, representing a decline of approximately 18.4%[22] - Basic earnings per common share for Q3 2025 was $0.22, down from $0.61 in Q3 2024, a decrease of 63.6%[17] - The company reported a significant increase in salaries to $15,597 million in Q3 2025, up from $13,726 million in Q3 2024, reflecting investment in human resources[192] Loan and Credit Quality - Net loans receivable rose to $6,400,512 thousand, compared to $4,561,599 thousand in the previous period, marking an increase of 40.3%[15] - Provision for credit loss expense significantly increased to $18,456,000 in Q3 2025 from $2,381,000 in Q3 2024, indicating a rise in expected credit losses[17] - The allowance for credit losses increased to $67,684 thousand from $47,357 thousand, indicating a rise of 42.9%[15] - The total provision for credit losses for the nine months ended September 30, 2025, was $5.936 billion, significantly impacting the overall financial performance[87] - The allowance for credit losses for owner-occupied, nonfarm nonresidential properties increased to $6.704 billion, reflecting a charge-off of $1.516 billion[87] - The Corporation's allowance for credit losses is influenced by loan volumes, risk rating migration, and economic forecasts[89] Deposits and Funding - Total deposits grew to $6,900,267 thousand, up from $5,371,364 thousand, reflecting a 28.5% increase[15] - The company experienced a net increase in checking, money market, and savings accounts of $155,024 thousand in 2025, compared to $70,861 thousand in 2024, indicating a growth of approximately 118.0%[22] - Brokered deposits increased to $261.9 million as of September 30, 2025, compared to $185.0 million at December 31, 2024[131] - Total loans pledged to the Federal Home Loan Bank (FHLB) were $3.6 billion as of September 30, 2025, up from $2.1 billion at December 31, 2024[134] Merger and Acquisition - The company is focused on integrating operations following the merger with ESSA Bancorp, Inc., aiming for expected synergies and efficiencies[12] - The acquisition of ESSA Bancorp and ESSA Bank contributed $202,549,000 to additional paid-in capital[19] - The total consideration paid to ESSA shareholders was approximately $202.6 million, consisting of about 8,359,430 shares valued at approximately $202.5 million and $21 thousand in cash for fractional shares[51] - The Corporation incurred merger and integration costs of $4.2 million for the three months and $6.0 million for the nine months ended September 30, 2025[52] Non-Interest Income and Expenses - Non-interest income totaled $10,566,000 in Q3 2025, slightly down from $10,973,000 in Q3 2024, showing a decrease of 3.7%[17] - Total non-interest expenses increased to $50,157,000 in Q3 2025, up from $38,784,000 in Q3 2024, marking a 29.4% rise[17] - Total non-interest income for the nine months ended September 30, 2025, was $28,081 million, slightly down from $28,793 million in the same period of 2024[192] Cash Flow and Investments - Net cash provided by operating activities decreased to $38,879 thousand in 2025 compared to $49,271 thousand in 2024, reflecting a decline of about 21.0%[22] - The company reported net cash provided by investing activities of $62,086 thousand in 2025, a significant improvement compared to a net cash used of $113,594 thousand in 2024[22] - Cash dividends declared for common stock were $12,885 thousand in 2025, compared to $11,134 thousand in 2024, representing an increase of approximately 15.7%[22] Asset Management - The total liabilities increased to $7,410,134 thousand, up from $5,581,315 thousand, representing a growth of 32.7%[15] - The total cash and cash equivalents at the end of September 2025 were $438,088 thousand, up from $360,909 thousand at the end of September 2024, marking an increase of approximately 21.4%[23] - The fair value of debt securities available-for-sale was $533.55 million as of September 30, 2025, with an amortized cost of $569.24 million[68] Risk Management - Future performance may be impacted by changes in interest rates and credit risks associated with lending activities[12] - The company anticipates potential challenges from economic conditions and competition affecting its operations and market position[12] - Significant uncertainty regarding the economy persists due to elevated interest rates and geopolitical conflicts, prompting management to evaluate expected credit losses proactively[90]

Core Insights - CNB Financial (CCNE) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.61 per share a year ago, representing an earnings surprise of +5.13% [1] - The company achieved revenues of $78.41 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.40% and increasing from $59.11 million year-over-year [2] - CNB has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $83.9 million, and for the current fiscal year, it is $2.71 on revenues of $280.5 million [7] - The estimate revisions trend for CNB was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Northeast industry, to which CNB belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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 previous quarter[8] - Total revenue for the three months ended September 30, 2025, was $77.7 million, an increase of $16.5 million, or 26.94%, from $61.2 million for the three months ended June 30, 2025[22] - Net income available to common shareholders for Q3 2025 was $5,969,000, a decrease from $12,881,000 in Q2 2025 and $12,878,000 in Q3 2024[44] - Adjusted net income available to common shareholders for the nine months ended September 30, 2025, was $47,582 thousand, up from $36,285 thousand in 2024, marking a 31.2% increase[42] Asset and Loan 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 assets reached $7,783,995,000 as of September 30, 2025, compared to $6,235,036,000 at the end of the previous quarter, marking a 24.8% growth[36] - Average loans and loans held for sale increased to $5,971,441,000 for the three months ended September 30, 2025, from $4,668,051,000 in the previous quarter, representing a 27.9% rise[36] - Total loans receivable rose to $5,971,441 thousand, an increase of 27.9% compared to $4,668,051 thousand in the previous quarter[40] Deposit Growth - Total deposits reached $6.9 billion, with organic deposit growth of $70.2 million, or 1.28% (5.10% annualized), compared to June 30, 2025[8] - Total deposits as of September 30, 2025, were $6,900,267,000, an increase from $5,467,082,000 in Q2 2025 and $5,216,949,000 in Q3 2024[43] Interest Income and Margin - Net interest income for the three months ended September 30, 2025, was $67.1 million, reflecting an increase of $14.9 million, or 28.61%, from $52.2 million for the three months ended June 30, 2025[22] - The net interest margin improved to 3.69% for the third quarter of 2025, up from 3.60% in the previous quarter[5] - Interest income for Q3 2025 reached $108,645,000, up 26.6% from $85,771,000 in Q2 2025 and 30.6% from $83,235,000 in Q3 2024[45] 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 17.17% from $39.6 million in Q2 2025, primarily due to increased salaries and benefits related to the ESSA acquisition[28] - Non-interest income totaled $10,566,000 for the three months ended September 30, 2025, up from $9,008,000 in the previous quarter, reflecting a 17.3% increase[35] Credit Quality and Allowance for Losses - Total nonperforming assets increased to 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, driven by a $16.4 million reserve for non-PCD loans from the ESSA acquisition[29] Shareholder Equity - 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 improved to 9.53% as of September 30, 2025, compared to 9.17% in Q2 2025[32] - Common shareholders' equity increased to $786,400,000 in Q3 2025, up 35.7% from $579,496,000 in Q2 2025 and 43.3% from $548,578,000 in Q3 2024[46] Efficiency and Returns - 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, with a fully tax-equivalent basis efficiency ratio of 57.67% when excluding merger costs[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, but 12.05% when excluding after-tax merger transaction related expenses[22] - Adjusted return on average equity (non-GAAP) for Q3 2025 was 12.05%, an increase from 9.06% in Q2 2025 and 9.28% in Q3 2024[49]

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]

Company Overview - CNB Financial (CCNE) is headquartered in Clearfield and operates in the Finance sector [3] - The stock has experienced a price change of -1.93% since the beginning of the year [3] Dividend Information - CNB Financial currently pays a dividend of $0.18 per share, resulting in a dividend yield of 2.95% [3] - The dividend yield of the Banks - Northeast industry is 2.63%, while the S&P 500's yield is 1.49% [3] - The company's annualized dividend of $0.72 has increased by 1.4% from the previous year [4] - Over the last 5 years, CNB Financial has increased its dividend twice on a year-over-year basis, averaging an annual increase of 1.20% [4] - The current payout ratio is 29%, indicating that the company paid out 29% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, CCNE anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $2.71 per share, reflecting a year-over-year growth rate of 13.39% [5] Investment Considerations - High-yielding stocks may struggle during periods of rising interest rates, but CCNE is considered a compelling investment opportunity due to its strong dividend profile [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [6]