Synovus Financial weighs merger options after drawing interest - Bloomberg
Investing.com -- CNB Financial Corporation (NASDAQ:CCNE) shares gained 2.2% after the parent company of CNB Bank reported second-quarter earnings that exceeded analyst expectations, driven by strong loan growth and improved net interest margin.
The bank posted adjusted earnings of $0.63 per share for the quarter ended June 30, 2025, beating the analyst estimate of $0.60. Revenue climbed to $61.2 million, surpassing the consensus estimate of $59.55 million.
Net interest margin improved significantly to 3.60% in the second quarter, up from 3.38% in the previous quarter. The company benefited from a 16 basis point increase in earning asset yields while the cost of interest-bearing liabilities decreased by 5 basis points.
"Our second quarter earnings and growth reflected the positive momentum of continued commercial loan growth and demand," said Michael Peduzzi, President and CEO. "These volume increases in our core net interest income components were complemented by increases in our average loan yield and continued decreases in our cost of interest-bearing funds."
Loans totaled $4.7 billion at quarter-end, representing a quarterly increase of $113.7 million or 2.50% (10.04% annualized) compared to March 31, 2025. Year-over-year, loans grew by $228.7 million or 5.17%.
Total (EPA:TTEF) deposits were $5.5 billion, reflecting a modest quarterly increase of $7.0 million. The bank reported significant improvement in asset quality, with nonperforming assets decreasing to $30.4 million or 0.48% of total assets, compared to $56.1 million or 0.89% of total assets in the previous quarter.
The company is set to close its acquisition of ESSA Bancorp (NASDAQ:ESSA) on July 23, 2025, which is expected to significantly expand CNB’s earning-asset base and market footprint in Northeastern Pennsylvania.
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