CNB Financial Closes 2025 with Strong Earnings

The bank's performance was fueled by improved loan growth, rising deposits, and increased operating scale.

January 28, 2026

CNB Financial Caps Transformative Year with Robust Financial Results and Post-Merger Momentum

CNB Financial wrapped up 2025 with significant gains across its business, reporting a sharp rise in earnings, strong deposit growth, and clear momentum following its acquisition of ESSA Bancorp. The company reported full-year net income of $61.8 million, up from $50.3 million the year prior. On an adjusted basis—excluding one-time merger expenses and accounting changes—earnings climbed even higher to $73.4 million.

The fourth quarter showed the impact of this progress. Net income available to common shareholders hit $32.6 million, a substantial increase from $6.0 million in Q3. Adjusted earnings landed at $25.8 million for the quarter. Key drivers included higher net interest income, improved non-interest income, and lower funding costs. It was also the first full quarter reflecting operations post-ESSA acquisition.

Loan and Deposit Growth Accelerate

Loans reached $6.4 billion at year-end, excluding $70.8 million in syndicated balances. Adjusting for the ESSA acquisition, CNB added $218.8 million in organic loan growth over the year. Growth was concentrated in key business lines and regional banks, including Ridge View Bank, BankOnBuffalo, and CNB’s private banking division.

On the funding side, deposits grew to $7.0 billion, with $288.1 million in organic growth after backing out ESSA-related balances. The bank also reported $88.1 million in deposits marked for sale—part of a broader effort to realign its branch footprint post-merger. Municipal relationships and retail accounts contributed meaningfully to the uptick.

Margins Widen as Interest Income Increases

Net interest income rose to $242.0 million for the year, a 29% jump from 2024. The full-year net interest margin expanded to 3.65%, up from 3.41%. On a tax-equivalent basis and adjusted for purchase accounting loan accretion, the margin stood at 3.55%.

Earning asset yields ticked up to 5.90%. At the same time, the cost of interest-bearing liabilities declined to 2.81%. That reduction reflects both deposit repricing strategies and the lower-cost funding brought in through the ESSA portfolio.

Operational Scale Supports Improved Efficiency

Non-interest income ended the year at $40.2 million, a modest increase from 2024. Gains came from higher wealth and asset management fees, as well as life insurance proceeds. Offsetting these were losses tied to commercial real estate loan sales and lower SBIC pass-through income.

Total non-interest expense came in at $190.9 million, including $13.8 million in merger-related costs. Excluding those, adjusted expenses were $177.1 million, up 18% from the prior year. Compensation and benefits accounted for much of the increase, alongside higher tech spend and integration costs. CNB has been investing in automation and digital service tools aimed at expanding delivery channels and improving internal efficiency.

The adjusted efficiency ratio (fully tax-equivalent) improved to 61.49% —a sign that the operating leverage from the ESSA acquisition is starting to take hold.

Stable Credit Performance with Strong Reserve Position

Credit quality held steady throughout the year. Nonperforming assets declined to $42.2 million, down from $59.5 million at the end of 2024. This improvement was driven by loan resolutions and paydowns, with only limited new additions from ESSA-related portfolios.

Net loan charge-offs were $7.2 million for the year, representing 0.13% of average total loans. CNB also reversed $16.4 million in provision for credit losses in Q4, thanks to the early adoption of a new accounting standard (ASU 2025-08). That change adjusted how certain acquired loans are classified, reducing the required allowance while preserving the credit buffer.

Capital and Liquidity Stay Solid

Shareholders’ equity ended the year at $872.1 million—up nearly 43% from 2024. Book value per share rose to $27.63, and tangible book value came in at $23.48. When adjusted for merger costs and accounting changes, tangible book value grew to $23.88.

CNB maintained strong liquidity, with $441.5 million in cash equivalents and access to $6.7 billion in contingent funding. That’s more than five times the level of adjusted uninsured deposits, giving the bank flexibility in a range of market conditions.

Regulatory capital ratios remained comfortably above well-capitalized levels.

Commercial Real Estate Exposure in Focus

As part of ongoing credit oversight, CNB outlined key metrics in its office, hospitality, and multifamily commercial loan portfolios. All three segments showed minimal delinquency and no regulatory high-volatility classifications. Collectively, they account for about 16.5% of total loans.

The average loan sizes were modest relative to total assets, and performance remained stable across all three categories. No charge-offs were reported in these segments.

Path Forward: Growth Built on Scale and Discipline

Leadership characterized 2025 as both a transition year and a foundation for what’s ahead. The ESSA acquisition boosted asset scale by more than 30%, expanded the customer base, and added operational capacity. Organic growth remained healthy, with underlying performance trends moving in the right direction.

With a diversified footprint across Pennsylvania, Ohio, New York, and Virginia—and a portfolio of banking divisions tailored to local markets—CNB is positioned for continued expansion. That includes divisions like BankOnBuffalo, Ridge View Bank, and Impressia Bank, which focuses on banking solutions for women.

Looking ahead, CNB plans to keep building on its momentum—prioritizing disciplined growth, efficient execution, and a client-centric approach.