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CCNE Nasdaq· CNB Financial Corp (PA)
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CCNE Nasdaq· CNB Financial Corp (PA)
Earnings report Q3 2023

CCNE Reports Decrease in Revenue for the Latest Quarter

Segments of Revenue

CCNE's revenue for the latest quarter ended September 30, 2023, decreased compared to the same period in the previous year. The company's net income available to common shareholders was $12.7 million, or $0.60 per diluted share, for the three months ended September 30, 2023. This is a decrease from the net income of $15.5 million, or $0.90 per diluted share, reported for the same period in 2022.

Strengths

Despite the decrease in revenue, CCNE's management highlighted several strengths in their financial performance. They attributed the decrease in diluted earnings per share to the year-over-year increase in deposit costs and the dilutive effect of the common stock offering completed in September 2022. The offering resulted in the issuance of 4,257,446 shares of common stock, increasing the total shares outstanding by approximately 25%. Additionally, CCNE experienced growth in its portfolio related to CNB Bank's Private Banking division and expansion markets in Cleveland, Roanoke, and Buffalo.

Challenges

CCNE faced challenges in the latest quarter, as evidenced by the decrease in revenue compared to the same period in the previous year. The rise in deposit costs and the dilutive effect of the common stock offering impacted the company's earnings per share. These challenges may require further evaluation and strategic adjustments to mitigate their impact on future financial performance.

Noteworthy

It is noteworthy that CCNE's consolidated balance sheet reflected a decrease in syndicated lending balances of $33.5 million compared to December 31, 2022. The syndicated loan portfolio accounted for 2.7% of total loans, excluding PPP-related loans, at September 30, 2023, compared to 3.7% at December 31, 2022. This decrease may indicate a shift in CCNE's lending strategy or market conditions.

Summary

CCNE reported a decrease in revenue for the latest quarter, primarily attributed to the rise in deposit costs and the dilutive effect of the common stock offering. Despite these challenges, the company showcased strengths in its portfolio growth related to CNB Bank's Private Banking division and expansion markets. CCNE's decrease in syndicated lending balances is also noteworthy. Moving forward, CCNE may need to address the challenges it faced in the latest quarter to improve its financial performance.

Source documents

Form 10-Q  filed on Nov 01, 2023
88 pages scanned

Reference data

Company financials Q3 revenue 55.6M
Analyst estimates Q3 EPS beat by 14.81%
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