Cnb Financial Corppa (CCNE) 10-K Annual Report March 2019

CNB Financial Corporation (“CNB”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the quarter and year ended December 31, 2018. Highlights include the following:

•Net income of $8.9 million, or $0.59 per share, in the fourth quarter of 2018, compared to net income of $3.5 million, or $0.23 per share, in the fourth quarter of 2017. Pre-tax income in the fourth quarter of 2018 was $11.1 million compared to $8.6 million in the fourth quarter of 2017, an increase of 28.4%.

•Net income of $33.7 million, or $2.21 per share, for the year ended December 31, 2018, compared to net income of $23.9 million, or $1.57 per share, for the year ended December 31, 2017. Pre-tax income for the year ended December 31, 2018 was $40.2 million compared to $36.3 million for the same period in 2017, an increase of 11.0%. Pre-tax income for the year ended December 31, 2017 includes securities gains of $1.5 million and a gain on sale of a branch of $536 thousand.

•Annualized returns on average assets and equity of 1.12% and 13.46%, respectively, for the year ended December 31, 2018, compared to 0.89% and 9.97%, respectively, for the year ended December 31, 2017. The annualized return on average tangible equity was 16.01% and 12.04% during the years ended December 31, 2018 and 2017, respectively.

•Net interest margin on a fully tax-equivalent basis of 3.76% and 3.82% for the years ended December 31, 2018 and 2017, respectively. Net interest margin on a fully tax-equivalent basis was 3.79% for the fourth and third quarters of 2018.

•Loans of $2.47 billion as of December 31, 2018, compared to loans of $2.15 billion as of December 31, 2017, representing organic loan growth of 15.3%.

•Deposits of $2.61 billion as of December 31, 2018, compared to deposits of $2.17 billion as of December 31, 2017, representing organic deposit growth of 20.4%.

•Total households serviced at December 31, 2018 were 63,920, compared to 59,051 households at December 31, 2017, an organic increase of 8.3%.

•Book value per share of $17.28 as of December 31, 2018, an increase of 8.1% compared to book value per share of $15.98 as of December 31, 2017, and tangible book value per share of $14.69 as of December 31, 2018, an increase of 10.2% compared to tangible book value per share of $13.33 as of December 31, 2017.

•Non-performing assets of $18.5 million, or 0.58% of total assets as of December 31, 2018, compared to $21.2 million, or 0.68% of total assets, as of September 30, 2018, and $20.4 million, or 0.74% of total assets, as of December 31, 2017.

CNB's fourth quarter and annual 2018 earnings were impacted by the reduction in the federal corporate income tax rate to 21%, effective January 1, 2018, from the 35% marginal tax rate in effect throughout 2017, as a result of the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. Fourth quarter and annual 2017 results include additional income tax expense of $3 million related to a reduction in the carrying value of the net deferred tax asset, resulting in a reduction of $0.20 in diluted earnings per share.

Joseph B. Bower, Jr., President and CEO, stated, "Our company had a record year in earnings, highlighted by double-digit organic growth in both loans and deposits. These results are a credit to our tremendous team that works tirelessly in the markets we serve to make a difference and effectively service the consumers and businesses that put their trust in us. While the stock market and political climate have been volatile and uncertain, I have never been more certain that our customer service-based strategy is being impactful in our markets as customers continue to bring their business to CNB."

Balance Sheet Summary

Total loans grew $329 million, or 15.3%, to $2.47 billion as of December 31, 2018, from $2.15 billion as of December 31, 2017, which was primarily attributable to growth in commercial loans. Overall, commercial and industrial loans increased $212 million, or 30%, and commercial real estate loans increased $53.2 million, or 8.2%, during the year ended December 31, 2018. The Buffalo market area contributed $160.9 million to the total loan growth in 2018.

The following information was filed by Cnb Financial Corppa (CCNE) on Monday, January 28, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Cnb Financial Corppa's 10-K Annual Report:

Financial - Expense Highlight
The provision for loan losses increased by $2.5 million, or 60.4%, and non-interest expenses increased by $2.9 million, or 4.3%.

Other - Other Highlight
Given the subjective nature of identifying and valuing loan losses, it is likely that well-informed individuals could make materially different assumptions and could therefore calculate a materially different allowance value.
Financial - Earnings Highlight
In addition, as a result of the Corporation exceeding certain growth and profitability targets used in calculating incentive compensation, incentive compensation expense increased by $2.2 million when compared to 2017.
Revenue - Product Highlight
As a result of the Banks continued focus on growing its Private Client Solutions division, wealth and asset management revenues were $3.7 million in 2017, an increase of 20.6% from $3.1 million in 2016.
Financial - Expense Highlight
The cost of interest-bearing liabilities increased 30 basis points to 1.12% for the year ended December 31, 2018 from 0.82% for the year ended December 31, 2017.
Other - Other
As a result of the...Read more
Financial - Expense
Non-interest costs are expected to...Read more
Revenue - Product
As a result of the...Read more
Financial - Earnings
In order to address the...Read more
Financial - Income
Interest income has been increased...Read more
Financial - Expense
The remainder of the increase...Read more
Revenue - Product
The volume and composition of...Read more
Financial - Earnings
While past results are not...Read more
Financial - Earnings
The yield on earning assets...Read more
Financial - Expense
The supplemental executive retirement plan...Read more
Other - Other
As disclosed in "Allowance for...Read more
Other - Other
In 2018, the Corporation substantially...Read more
Financial - Earnings
The Corporation?s capital continues to...Read more
Financial - Earnings
The following table presents ending...Read more
Financial - Income
The lower effective tax rate...Read more
Other - Other
These estimates are based on...Read more
Other - Other
Effective January 1, 2019 the...Read more
Financial - Income
The impact of the reduction...Read more
Other - Other
Management views critical accounting policies...Read more
Other - Other
The Corporation also invested in...Read more
Other - Other
As disclosed in the Allowance...Read more
Other - Other
The postretirement benefit payments represent...Read more
Revenue - Product
which included gains on the...Read more
Other - Other
The following table presents activity...Read more
Other - Other
December 31, 2018 The weighted...Read more
Financial - Expense
Included in non-interest expenses in...Read more
Other - Other
Management continues to closely monitor...Read more
Other - Other
The effective tax rates were...Read more
Other - Other
Tangible assets is calculated by...Read more
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Forward-looking statements often include the...Read more
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A material estimate that is...Read more
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Financial - Cash Flow
When third-party information is not...Read more
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Certain policies inherently have a...Read more
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Management?s judgment is based on...Read more
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As mentioned in the "Loans"...Read more
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The Corporation?s capital ratios and...Read more
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The Corporation believes that these...Read more
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Estimates or judgments are necessary...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Cnb Financial Corppa provided additional information to their SEC Filing as exhibits

Exhibit 21: Subsidaries Of The Registrant

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Exhibit 99.1: Additional Exhibits

Ticker: CCNE
CIK: 736772
Form Type: 10-K Annual Report
Accession Number: 0000736772-19-000009
Submitted to the SEC: Thu Mar 07 2019 6:23:15 AM EST
Accepted by the SEC: Thu Mar 07 2019
Period: Monday, December 31, 2018
Industry: State Commercial Banks

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Cnb Financial Corppa (CCNE) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

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