CNB Community Bancorp, Inc. Reports Third Quarter 2020 Results

Rhea-AI Summary

CNB Community Bancorp, Inc. (OTC: CNBB) reported a third-quarter 2020 net income of $2.6 million, reflecting a 4.2% increase from $2.5 million in Q3 2019. Basic earnings per share also rose to $1.22, up $0.04 year-over-year. For the nine months ending September 30, 2020, net income reached $7.7 million, an 8.8% increase from $7.1 million in the same period of 2019. Key metrics showed strong growth with total assets soaring 29.9% to $938.9 million and net loans increasing 31.9% to $786.5 million.

Positive

• Net income increased by $104,000 (4.2%) to $2.6 million in Q3 2020 compared to Q3 2019.
• Basic earnings per share rose to $1.22, up $0.04 from Q3 2019.
• Year-to-date net income of $7.7 million, an increase of $627,000 (8.8%) from 2019.
• Total assets increased by $216.2 million (29.9%) to $938.9 million year-over-year.
• Net loans grew by $190.1 million (31.9%) to $786.5 million at September 30, 2020.
• Total deposits saw an increase of $204.2 million (32.0%) to $842.7 million year-over-year.

Negative

• Annualized return on average assets (ROA) decreased to 1.37% in Q3 2020 from 1.39% in Q3 2019.
• Annualized return on average equity (ROE) fell to 14.8% in Q3 2020, down from 16.2% in Q3 2019.
• ROA decreased to 1.29% for the first nine months of 2020, down from 1.37% in the same period of 2019.
• ROE was 15.5% for the first nine months of 2020, down from 16.1% during the same period in 2019.

HILLSDALE, Mich., Oct. 16, 2020 /PRNewswire/ -- CNB Community Bancorp, Inc. (OTC: CNBB), the parent company of County National Bank, today announced earnings for the three and nine months ended September 30, 2020. Earnings during the third quarter of 2020 totaled $2.6 million, an increase of $104,000 or 4.2% compared to the $2.5 million earned during the three months ended September 30, 2019. Basic earnings per share for CNB Community Bancorp, Inc. (the "Company") increased to $1.22 during the three months ended September 30, 2020, up $0.04 from $1.18 during the third quarter of 2019. For the nine months ended September 30, 2020, the Company reported net income of $7.7 million, an increase of $627,000, or 8.8%, from the $7.1 million earned during the nine months ended September 30, 2019. Basic earnings per share increased to $3.66 during the nine months ended September 30, 2020, up $0.26 from $3.40 during the first nine months of 2019.

The annualized return on average assets (ROA) decreased to 1.37% for the three months ended September 30, 2020, slightly down from 1.39% for the three months ended September 30, 2019. The annualized return on average equity (ROE) decreased to 14.8% for the current quarter, down from 16.2% for the third quarter of 2019. ROA decreased to 1.29% during the nine months ended September 30, 2020, down eight basis points from the 1.37% during the first nine months of 2019. ROE was 15.5% during the first nine months of 2020, down from 16.1% during the nine-month period ended September 30, 2019.  Book value per share increased to $33.14 at September 30, 2020, up $3.50 from $29.64 at September 30, 2019.

John R. Waldron, President and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, remarked, "The first nine months of this year has not been about elections, pandemics or recessionary concerns.  2020 has been about our employees and our communities overcoming and persevering.  Of course, CNB takes pride in the consistent earnings and record numbers so far in 2020 but I am equally impressed by the efforts of our employees and the communities in continuing to live their lives, showing strength just in going to work every day.  With that in mind, there are two financial markers that I would point out as they are indicative of how CNB has had to have a dual focus in 2020.  The Bank is on pace to significantly surpass last year's record level of donations but, also, CNB has been preparing for many possible futures by adding nearly $1.9 million to our allowance for loan loss in the first nine months of the year." 

Financial Highlights

• Total assets increased $216.2 million, or 29.9%, to $938.9 million from September 30, 2019 and $201.4 million, or 27.3% from December 31, 2019.
• Net loans increased $190.1 million, or 31.9%, to $786.5 million at September 30, 2020 compared to $596.3 million at September 30, 2019 and increased $163.8 million, or 26.3%, from December 31, 2019.
• Total deposits increased $204.2 million, or 32.0%, to $842.7 million at September 30, 2020 from $638.5 million at September 30, 2019 and increased $190.7 million, or 29.2% from December 31, 2019.
• Book value per share increased $3.50, or 11.8%, to $33.14 at September 30, 2020, up from $29.64 at September 30, 2019 and up $3.03 from $30.11 at December 31, 2019.
• Total equity increased $8.0 million to $70.1 million from September 30, 2019.
• Net income increased $104,000, 4.2%, to $2.6 million in the third quarter of 2020 and basic EPS increased $0.04, or 3.4%, to $1.22 from $1.18 in the third quarter of 2019.
• Net interest income for the third quarter of 2020 increased $897,000 to $8.0 million compared to the third quarter.
• Pre-tax, pre-provision income increased $974,000 to $4.2 million in the third quarter of 2020, compared to $3.3 million in the third quarter of 2019.

About CNB Community Bancorp Inc.

CNB Community Bancorp, Inc. (OTC:CNBB) is a one-bank holding company formed in 2005.  Its subsidiary bank, County National Bank, is a nationally chartered full-service bank, which has served its local communities since its founding in 1934.  CNB Community Bancorp, Inc. is headquartered in Hillsdale, Michigan and through its subsidiary bank offers banking products along with investment management and trust services to communities located throughout South Central Michigan.

Safe Harbor Statement
This news release and other releases and reports issued by the Company may contain "forward-looking statements." The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company is including this statement for purposes of taking advantage of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

View original content:http://www.prnewswire.com/news-releases/cnb-community-bancorp-inc-reports-third-quarter-2020-results-301154197.html

SOURCE CNB Community Bancorp, Inc.

FAQ

What were the earnings results for CNB Community Bancorp in Q3 2020?

CNB Community Bancorp reported a net income of $2.6 million in Q3 2020, up 4.2% from $2.5 million in Q3 2019.

How did CNBB's basic earnings per share perform in Q3 2020?

The basic earnings per share for CNB Community Bancorp increased to $1.22 in Q3 2020, up $0.04 from $1.18 in Q3 2019.

What was CNB Community Bancorp's net income for the nine months ended September 30, 2020?

The net income for CNB Community Bancorp for the nine months ended September 30, 2020, was $7.7 million, an increase of 8.8% from $7.1 million in 2019.

What growth did CNB Community Bancorp experience in total assets?

Total assets increased by $216.2 million, or 29.9%, to $938.9 million as of September 30, 2020, compared to the previous year.

Did CNB Community Bancorp see an increase in net loans?

Yes, net loans grew by $190.1 million, or 31.9%, to $786.5 million at September 30, 2020.