CNB Financial Corporation Reports Third Quarter Earnings for 2013

Asset Quality

During the nine months ended September 30, 2013, CNB recorded a provision for loan losses of $4.9 million, as compared to a provision for loan losses of $4.0 million for the nine months ended September 30, 2012.

A commercial mortgage loan with a carrying value of $3.3 million defaulted in the second quarter.  Based on management's evaluation of the fair value of the associated collateral, no provision for loan losses was required to be recorded for this loan relationship as of June 30, 2013.  During the third quarter of 2013, this loan was modified in a troubled debt restructuring, which will result in the Corporation receiving reduced monthly payments that will be applied entirely to the loan's principal balance.  The Corporation also obtained an updated appraisal for the loan collateral in October 2013 and, as a result, recorded a provision for loan losses of $562 thousand for the quarter ended September 30, 2013.

In July 2013, CNB recorded a loan loss recovery of $1.4 million related to an impaired commercial mortgage loan.  A partial chargeoff had been recorded for this loan in a prior period.  At the recovery date, the carrying amount of the loan was $5.2 million, which was satisfied in full by CNB's participation in the issuance of a loan at market terms to a new borrower who purchased the property securing the loan.

Non-Interest Income

Excluding the effects of securities transactions, non-interest income was $9.3 million for the nine months ended September 30, 2013, compared to $7.9 million for the nine months ended September 30, 2012.  Net realized gains on available-for-sale securities were $0 and $328 thousand during the three and nine months ended September 30, 2013, compared to $103 thousand and $1.4 million during the three and nine months ended September 30, 2012.  Net realized and unrealized gains on trading securities were $166 thousand and $497 thousand during the three and nine months ended September 30, 2013, compared to $275 thousand and $455 thousand during the three and nine months ended September 30, 2012.

Wealth and asset management fees increased from $1.3 million during the nine months ended September 30, 2012 to $1.7 million during the nine months ended September 30, 2013 due to increases in assets under management resulting from CNB's strategic focus to grow its Wealth and Asset Management Division.  During the nine months ended September 30, 2013, CNB recorded $1.4 million in income from bank owned life insurance policies, including $576 thousand representing the excess of the face value of certain policies over their cash surrender values resulting from the maturity of the policies.

Non-Interest Expenses

Total non-interest expenses increased $3.8 million, or 13.9%, during the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012.  Non-interest expenses for the three and nine months ended September 30, 2013 include merger related expenses of $398 thousand and $1.3 million, respectively. 

Salaries and benefits expenses increased $1.6 million, or 11.6%, during the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012, in part due to routine merit increases, an increase in average full-time equivalent employees, and increases in certain employee benefit expenses, such as health insurance premiums, which continue to increase in line with market conditions.  Net occupancy expenses increased $438 thousand, or 12.9%, during the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012, as a result of anticipated increases in repair, maintenance, and utility expenses, as well as increases in depreciation expense for recently completed projects and asset purchases. 

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated post-merger assets of approximately $2.2 billion that conducts business primarily through CNB Bank, CNB's principal subsidiary.  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, a loan production office, and 29 full-service offices in Pennsylvania, including ERIEBANK, a division of CNB Bank, as well as 8 full-service offices in Ohio conducting business as FCBank, a division of CNB Bank.  More information about CNB and CNB Bank may be found on the internet at www.bankcnb.com.

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."  Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements include, but are not limited to: changes in general business, industry or economic conditions or competition; changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; adverse changes or conditions in capital and financial markets; changes in interest rates; higher than expected costs or other difficulties related to integration of combined or merged businesses; the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and other acquisitions, including the acquisition of FC Banc Corp.; changes in the quality or composition of CNB's loan and investment portfolios; adequacy of loan loss reserves; increased competition; loss of certain key officers; continued relationships with major customers; deposit attrition; rapidly changing technology; unanticipated regulatory or judicial proceedings and liabilities and other costs; changes in the cost of funds, demand for loan products or demand for financial services; and other economic, competitive, governmental or technological factors affecting CNB's operations, markets, products, services and prices.  Some of these and other factors are discussed in CNB's annual and quarterly reports previously filed with the SEC.  Such factors could cause actual results to differ materially from those in the forward-looking statements.

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 Financial Corporation.

			(unaudited)				(unaudited)
			Three Months Ended				Nine Months Ended
			September 30,				September 30,
			(Dollars in thousands, except share and per share data)
			2013	2012	% change		2013	2012	% change
Income Statement
Interest income			$    17,465	$    17,133	1.9%		$    50,927	$    51,164	-0.5%
Interest expense			2,817	3,463	-18.7%		9,002	11,543	-22.0%
	Net interest income		14,648	13,670	7.2%		41,925	39,621	5.8%
Provision for loan losses			846	1,188	-28.8%		4,891	4,038	21.1%
	Net interest income after provision for loan losses		13,802	12,482	10.6%		37,034	35,583	4.1%
Non-interest income
	Wealth and asset management fees		615	498	23.5%		1,727	1,311	31.7%
	Service charges on deposit accounts		1,102	1,049	5.1%		3,063	3,020	1.4%
	Other service charges and fees		607	467	30.0%		1,561	1,367	14.2%
	Net realized gains on available-for-sale securities		- Werbung Mehr Nachrichten zur CNB Financial Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 09:50 - PR Newswire Datang Intnl Pwr Gen - CHANGE OF JOINT COMPANY SECRETARY ANNOUNCEMENT 02:00 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Total Voting Rights Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59