CNB Financial Q3 profit rises on ESSA deal

CNB Financial

Wed 21:20

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: ID:nGNX6PmxXw

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%

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(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.)