Company: CCNE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000736772-25-000202
Chunk: 241

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 241
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-INTEREST EXPENSE

For the three months ended September 30, 2025, total non-interest expense was $50.2 million, compared to $38.8 million for the three months ended September 30, 2024. Excluding merger and integration costs, total non-interest expense for the three months ended September 30, 2025 was $46.0 million compared to $38.8 million for the three months ended September 30, 2024. Excluding merger and integration costs, the $7.2 million increase in non-interest expense compared to the three months ended September 30, 2024 was primarily driven by higher salaries and benefits, reflecting staffing additions from the Merger, as well as increased incentive compensation accruals and health insurance costs. Additionally, card processing and interchange expenses increased, largely due to changes made to the Corporation's cardholder rewards program during the second quarter of 2024 and other non-interest expenses also increased, primarily due to higher business development activity.

INCOME TAX EXPENSE

Income tax expense was $2.0 million, representing a 22.43% effective tax rate, compared to $3.3 million, representing a 19.31% effective tax rate for the three months ended September 30, 2025 and 2024, respectively.

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RESULTS OF OPERATIONS

Nine Months Ended September 30, 2025 and 2024

OVERVIEW

Earnings were $29.3 million, or $1.26 per diluted share, for the nine months ended September 30, 2025. Excluding after-tax merger transaction related expenses, adjusted earnings were $47.6 million, or $2.05 per diluted share, for the nine months ended September 30, 2025, compared to earnings of $36.3 million, or $1.72 per diluted share, for the nine months ended September 30, 2024. The year-to-date increase of $11.3 million, or 31.13%, and $0.33 per diluted share, or 19.19%, was primarily the result of an increase in net interest income, partially offset by a decrease in non-interest expense.

Annualized return on average equity was 6.42% for the nine months ended September 30, 2025. Excluding after-tax merger transaction related expenses, annualized return on average equity was 10.05% for the nine months ended September 30, 2025