CNB Financial Q3 profit rises on ESSA deal

By Reuters News


Overview

  • U.S. regional bank's Q3 net income and EPS rose sharply yr/yr, aided by ESSA acquisition

  • Q3 revenue increased yr/yr, driven by higher net interest income and loan growth

  • Q3 deposits declined due to exit from higher-cost corporate deposits; underlying deposits rose


Outlook

  • CNB Financial sees a sound loan production pipeline and deposit growth opportunities entering Q4

  • Company expects to sustain a positive net interest margin amid changing interest rate environment

  • Company expects continued accretion of tangible book value despite higher unrealized investment losses


Result Drivers

  • LOAN GROWTH - Increase in organic loans was primarily driven by growth in commercial real estate and residential real estate loans

  • TREASURY MANAGEMENT - Growth in noninterest-bearing deposits was primarily driven by new and expanded treasury management customer relationships

  • NET INTEREST INCOME - Higher net interest income reflected impact of ESSA acquisition and legacy loan portfolio growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.91

Q3 Net Income

$28.06 mln

Q3 Net Interest Income

$76.31 mln

Q3 Credit Loss Provision

$3.47 mln

Q3 Pretax Profit

$33.22 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for CNB Financial Corp is $38.00, about 9.9% above its October 20 closing price of $34.58

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 20 - Commerce Bancshares Q3 EPS beats, helped by loan growth

  • Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

  • Oct 21 - Community Trust Bancorp's Q3 net interest income rises nearly 10%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.