Third quarter 2026
Filed Oct 21, 2026CNB Financial Corporation reported third-quarter net income available to common shareholders of $ 26,985 thousand, or $ 0.91 per diluted share, as net interest income and non-interest income increased from the prior-year period while provision expense and non-interest expense increased.
Third-quarter diluted EPS held at $ 0.91 sequentially and rose from $ 0.69 a year earlier. Total revenue was $ 87,794 thousand, net interest margin was 3.89%, and organic loans increased $76.5 million from June 30, 2026. Credit costs increased, with provision for credit losses of $ 3,471 thousand and total nonperforming assets of $ 56,857 thousand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $87.79M | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $76.31M | – | $9.2 million, or 13.67% |
| Total non-interest income, three months ended September 30, 2026GAAP | $11.49M | – | – |
| Total non-interest expenses, three months ended September 30, 2026GAAP | $51.10M | $396 thousand, or 0.78% | $5.1 million, or 11.09%, excluding merger and integration costs |
| Provision for credit losses, three months ended September 30, 2026GAAP | $3.47M | $1.7 million | $1.4 million |
| Income before income taxes, three months ended September 30, 2026GAAP | $33.22M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $5.16M | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 15.53% | – | – |
| Net income, three months ended September 30, 2026GAAP | $28.06M | – | – |
| Net income available to common shareholders, three months ended September 30, 2026GAAP | $26.98M | decreased $244 thousand | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 0.91 | remained unchanged at $0.91 | – |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $ 0.91 | – | – |
| PPNR, three months ended September 30, 2026non-GAAP | $36.69M | – | – |
| Net interest margin, three months ended September 30, 2026GAAP | 3.89% | – | – |
| Net interest margin, fully tax equivalent basis, three months ended September 30, 2026non-GAAP | 3.89% | – | – |
| Net interest margin excluding purchase accounting loan accretion, fully tax equivalent basis, three months ended September 30, 2026non-GAAP | 3.75% | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.33% | – | – |
| Return on average equity, three months ended September 30, 2026GAAP | 12.09% | – | – |
| Return on average tangible common equity, three months ended September 30, 2026non-GAAP | 14.39% | – | – |
| Efficiency ratio, three months ended September 30, 2026GAAP | 58.21% | – | – |
| Efficiency ratio, fully tax equivalent basis, three months ended September 30, 2026non-GAAP | 56.53% | increase of 39 basis points | – |
| Net loan charge-offs, three months ended September 30, 2026GAAP | $2.35M | – | – |
| Annualized net loan charge-offs / average total loans and loans held for sale, three months ended September 30, 2026GAAP | 0.14% | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $258.8M | – | – |
| Net interest income, nine months ended September 30, 2026GAAP | $226.0M | – | $58.2 million, or 34.70% (46.40% annualized) |
| Total non-interest income, nine months ended September 30, 2026GAAP | $32.79M | – | – |
| Total non-interest expenses, nine months ended September 30, 2026GAAP | $151.0M | – | $26.2 million, or 21.02%, excluding merger and integration costs |
| Provision for credit losses, nine months ended September 30, 2026GAAP | $6.25M | – | decrease of $1.7 million |
| Net income, nine months ended September 30, 2026GAAP | $83.40M | – | – |
| Net income available to common shareholders, nine months ended September 30, 2026GAAP | $80.17M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $ 2.69 | – | – |
| Adjusted diluted earnings per common share, nine months ended September 30, 2026non-GAAP | $ 2.69 | – | $0.64 per diluted share |
| PPNR, nine months ended September 30, 2026non-GAAP | $107.8M | – | – |
| Net interest margin, nine months ended September 30, 2026GAAP | 3.87% | – | – |
| Total loans receivable, September 30, 2026GAAP | $6.62B | – | – |
| Organic Loans, September 30, 2026other | $6.5B | $76.5 million, or 1.19% (4.73% annualized) | $83.8 million, or 1.31% |
| Syndicated loans, September 30, 2026other | $124.1M | increase of $30.2 million | – |
| Total deposits, September 30, 2026GAAP | $7.05B | declined by $32.6 million, or 0.46% (1.83% annualized) | $147.6 million, or 2.14% |
| Total cash and cash equivalents, September 30, 2026GAAP | $325.3M | – | – |
| Short-term borrowings, September 30, 2026GAAP | $164M | – | – |
| Total shareholders' equity, September 30, 2026GAAP | $912.5M | increase of $3.1 million, or 0.34% | increase of $55.4 million, or 6.47% |
| Book value per common share, September 30, 2026GAAP | $ 28.86 | increase of $0.11, or 0.38% | increase of $1.56, or 5.71%, excluding the after-tax impact of merger transaction related expenses |
| Tangible book value per common share, September 30, 2026non-GAAP | $ 24.87 | increase of $0.14, or 0.57% | increased $1.93, or 8.41%, adjusted tangible book value per common share |
| Total nonperforming assets, September 30, 2026GAAP | $56.86M | decrease of $1.6 million | $16.5 million increase |
| Nonperforming assets / Total assets, September 30, 2026GAAP | 0.68% | – | – |
| Allowance for credit losses / Total loans, September 30, 2026GAAP | 1.04% | – | – |
| Tangible common equity / tangible assets, September 30, 2026non-GAAP | 8.91% | – | – |
| Common equity tier 1 ratio, September 30, 2026other | 12.19% | – | – |
| Total risk-based ratio, September 30, 2026other | 14.67% | – | – |
Capital returns
- Cash dividends per common share were $ 0.19 for the three months ended September 30, 2026, compared to $ 0.19 for the three months ended June 30, 2026 and $ 0.18 for the three months ended September 30, 2025.
- Cash dividends per common share were $ 0.57 for the nine months ended September 30, 2026, compared to $ 0.54 for the nine months ended September 30, 2025.
- Dividend payout ratio was 21 % for the three months ended September 30, 2026 and 21 % for the nine months ended September 30, 2026.
What drove it
- Net interest income increased year over year primarily reflecting the impact of the ESSA acquisition and growth in the Corporation's legacy loan portfolio.
- Organic Loans increased $76.5 million, or 1.19% (4.73% annualized), from June 30, 2026, primarily driven by commercial real estate and residential real estate loans.
- The strategic exit of higher-cost corporate deposits totaling approximately $76.1 million carried an average interest cost of 3.69%. Excluding this exit, total deposits increased approximately $43.5 million, or 0.61% (2.44% annualized), sequentially.
- Third-quarter non-interest income increased sequentially due to wealth and asset management fees and treasury management fees. Wealth and asset management fees included a $1.1 million transition fee for moving the retail investment business platform to a new provider.
- Income tax expense included recognition of $1.2 million in renewable energy tax credits.
Concerns
- Provision for credit losses was $ 3,471 thousand, compared to $ 1,777 thousand in the preceding quarter, primarily driven by a $1.6 million charge-off on one commercial loan relationship.
- Net loan charge-offs were $ 2,353 thousand, or 0.14%, compared to $ 1,443 thousand, or 0.09%, in the preceding quarter.
- Total nonperforming assets were $ 56,857 thousand, or 0.68% of total assets, versus $ 40,353 thousand, or 0.49% of total assets, at September 30, 2025.
- Pre-tax net unrealized losses on securities increased to $81.9 million from $54.8 million at June 30, 2026.
- Total non-interest expenses increased $396 thousand, or 0.78%, sequentially, primarily due to higher salaries and benefits, including increased incentive compensation accruals.
What to watch
- Organic loan production in commercial real estate and residential real estate loans, alongside syndicated loan balances of $124.1 million.
- Deposit growth following the strategic exit of approximately $76.1 million of higher-cost corporate deposits and the planned sale of customer deposit accounts associated with $78.0 million in deposits held for sale.
- Credit performance of the commercial and industrial relationship that had an outstanding balance of $3.0 million and a related reserve of approximately $2.0 million after the $1.6 million charge-off.
- The effect of changes in the yield curve on the $81.9 million of pre-tax net unrealized losses and on net interest margin.
- Expense trends, including salaries and benefits, software licensing expenses, and core system volume-based fees associated with the ESSA acquisition.
Balance sheet and cash flow
- Total assets were $ 8,385,117 thousand at September 30, 2026, compared to $ 8,432,169 thousand at June 30, 2026 and $ 8,270,706 thousand at September 30, 2025.
- Interest-bearing deposits with Federal Reserve were $ 221,181 thousand at September 30, 2026.
- The Corporation had total contingent liquidity resources of $6.2 billion and total available liquidity sources of approximately 4.7 times adjusted uninsured deposit balances as of September 30, 2026.
- Pre-tax net unrealized losses on combined available-for-sale and held-to-maturity securities were $81.9 million, or 8.98% of total shareholders' equity, at September 30, 2026, compared to $54.8 million, or 6.02% of total shareholders' equity, at June 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
CNB Financial reported third-quarter net income available to common shareholders of $ 26,985 thousand, or $ 0.91 per diluted share. Earnings were $ 27,229 thousand, or $ 0.91 per diluted share, in the prior quarter and $ 18,914 thousand, or $ 0.69 per diluted share, in the prior-year quarter. Nine-month net income available to common shareholders was $ 80,175 thousand, or $ 2.69 per diluted share, compared with $ 42,201 thousand, or $ 1.81 per diluted share, in the comparable 2025 period. The company attributed year-over-year earnings growth to organic growth and the impact of the ESSA acquisition.
Third-quarter total revenue was $ 87,794 thousand, versus $ 87,646 thousand sequentially and $ 77,695 thousand a year ago. Net interest income of $ 76,305 thousand was nearly unchanged from $ 76,344 thousand in the preceding quarter and increased from $ 67,129 thousand a year earlier. GAAP net interest margin was 3.89%, compared with 3.88% sequentially and 3.69% a year ago. On a fully tax-equivalent basis excluding purchase accounting loan accretion, net interest margin was 3.75%, compared with 3.65% sequentially and 3.50% a year ago. The quarter included lower purchase accounting loan accretion of $2.7 million, compared with $4.8 million in the second quarter.
Balance-sheet activity reflected organic loan growth and a deliberate deposit mix action. Organic Loans were $6.5 billion and increased $76.5 million, or 1.19% (4.73% annualized), from June 30, 2026. Total deposits were $ 7,047,867 thousand, declining $32.6 million, or 0.46% (1.83% annualized), sequentially after the Bank exited approximately $76.1 million of higher-cost corporate deposits. Excluding that exit, deposits increased approximately $43.5 million, or 0.61% (2.44% annualized). Noninterest-bearing deposits increased by $13.5 million, or 1.18% (4.67% annualized), driven by additional and expanded treasury management customer relationships.
Credit costs rose in the quarter. Provision for credit losses was $ 3,471 thousand, compared with $ 1,777 thousand in the preceding quarter, while net loan charge-offs were $ 2,353 thousand, or 0.14% of average total loans and loans held for sale, versus $ 1,443 thousand, or 0.09%. The increase was primarily tied to a $1.6 million charge-off on one commercial loan relationship. Total nonperforming assets declined sequentially to $ 56,857 thousand, or 0.68% of total assets, from $ 58,423 thousand, but remained above $ 40,353 thousand, or 0.49% of total assets, a year earlier.
Capital increased modestly during the quarter. Total shareholders' equity was $ 912,550 thousand, up $3.1 million, or 0.34%, from June 30, 2026, as growth in retained earnings net of common and preferred dividends was partly offset by a $19.3 million increase in accumulated other comprehensive loss. Book value per common share was $ 28.86 and tangible book value per common share was $ 24.87. The main balance-sheet sensitivity remains securities valuation: pre-tax net unrealized losses on available-for-sale and held-to-maturity portfolios were $81.9 million, or 8.98% of total shareholders' equity, compared with $54.8 million, or 6.02%, at June 30, 2026. The release provided no quantitative forward guidance.
Management, verbatim
Earnings of $2.69 per diluted share for the first nine months of 2026 were a record for the Corporation versus comparable periods in any prior years, as we sustained positive operating performance in the third quarter consistent with the first half of 2026
Michael Peduzzi, President and CEO of both the Corporation and CNB Bank
We continue to realize qualitative growth from both new and expanded relationships in lending and treasury management activities, and see a sound loan production pipeline and both retail and treasury management deposit growth opportunities entering the fourth quarter.
Michael Peduzzi, President and CEO of both the Corporation and CNB Bank
We remain well-positioned from an interest rate risk management position to sustain a positive net interest margin in the current changing interest rate environment.
Michael Peduzzi, President and CEO of both the Corporation and CNB Bank
Not in the filing
stated, not guessed- Forward revenue, earnings, net interest margin, expense, tax-rate, loan-growth, deposit-growth, credit-cost, or capital guidance was not reported.
- Prior management outlook was not provided, so no comparison to prior guidance is available.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Gross margin was not reported and is not a stated banking metric.
- Operating income was not reported.
- Reportable operating segments and segment revenue were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.