Home > Who We Are > News
CNB Financial Corporation Reports First Quarter Earnings for 2014
Clearfield, PA - April 14, 2014
CNB Financial Corporation (“CNB”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the first quarter of 2014. Highlights include the following:
Net income of $5.2 million, or $0.36 per share, compared to net income of $4.3 million, or $0.34 per share, in the first quarter of 2013. •
Annualized returns on average assets and equity of 0.97% and 11.97%, respectively, for the three months ended March 31, 2014.
Including loans acquired from FC Banc Corp. with an acquisition date fair value of approximately $248 million, loans of $1.29 billion at March 31, 2014 compared to loans of $933 million at March 31, 2013.
Including deposits acquired from FC Banc Corp. with an acquisition date fair value of approximately $332 million, deposits of $1.83 billion at March 31, 2014 compared to deposits of $1.55 billion at March 31, 2013.
Total non-performing assets of $13.1 million, or 0.62% of total assets, as of March 31, 2014, compared to $16.9 million, or 0.93% of total assets, as of March 31, 2013.
Joseph B. Bower, Jr., President and CEO, commented, “We are pleased to report to our shareholders record quarterly earnings of $5.2 million which provides an increase in earnings per share of 5.9% over the first quarter of 2013. The integration of FCBank continues to add momentum for CNB following the acquisition of FC Banc Corp. in October 2013, and we anticipate that our CNB Bank and ERIEBANK market areas will generate organic growth throughout the remainder of 2014.”
Net Interest Income and Margin
Net interest margin on a fully tax equivalent basis was 3.79% for the three months ended March 31, 2014, compared to 3.41% for the three months ended March 31, 2013. Net accretion included in loan interest income in the first quarter of 2014 related to loans acquired in the fourth quarter of 2013 was $740 thousand, resulting in an increase in the net interest margin of 15 basis points. Changes in earning assets, interest-bearing liabilities, and resulting interest income and expense from the first quarter of 2013 to the first quarter of 2014 are primarily a result of the acquisition of FC Banc Corp. in the fourth quarter of 2013; please refer to the financial tables that follow the forward-looking statements.
During the three months ended March 31, 2014, CNB recorded a provision for loan losses of $1.0 million, as compared to a provision for loan losses of $930 thousand for the three months ended March 31, 2013. CNB increased its reserve for two impaired commercial and industrial loans in the first quarter of 2014, resulting in an increase in the provision for loan losses of $421 thousand. Net chargeoffs in the first quarter of 2014 were $581 thousand, compared to net chargeoffs of $1.1 million in the first quarter of 2013.
Non-interest income was $3.2 million for the three months ended March 31, 2014, compared to $3.1 million for the three months ended March 31, 2013. Non-interest income as a percentage of average assets declined from 0.69% during the first quarter of 2013 to 0.60% during the first quarter of 2014, primarily due to a decrease in service charges on deposit accounts in relation to total demand deposits and a decrease in net unrealized gains (losses) on trading securities of $328 thousand.
Total non-interest expenses were $13.3 million and $9.7 million during the three months ended March 31, 2014 and 2013, respectively. Non-interest expenses for the three months ended March 31, 2014 include amortization of a core deposit intangible asset of $302 thousand associated with CNB’s acquisition of FC Banc Corp. in the fourth quarter of 2013. Non-interest expenses for the three months ended March 31, 2013 include merger-related expenses of $103 thousand. Salaries and benefits expenses increased $1.6 million, or 31.5%, during the three months ended March 31, 2014 compared to the three months ended March 31, 2013, due to routine merit increases, an increase in average full-time equivalent employees resulting primarily from the acquisition of FC Banc Corp., 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 $444 thousand, or 33.7%, during the three months ended March 31, 2014 compared to the three months ended March 31, 2013, as a result of anticipated increases in repair, maintenance, and utility expenses, increases in depreciation expense for recently completed projects and asset purchases, and the addition of eight branch locations from the acquisition of FC Banc Corp. Other non-interest expenses increased $1.2 million, or 44.4%, during the three months ended March 31, 2014 compared to the three months ended March 31, 2013, as a result of the acquisition of FC Banc Corp.
About CNB Financial Corporation
CNB Financial Corporation is a financial holding company with consolidated assets of approximately $2.1 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 in Hollidaysburg, Pennsylvania, and 28 full-service offices in Pennsylvania, including ERIEBANK, a division of CNB Bank, as well as 8 full-service offices in central 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.
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 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.