CNB Financial reports Q1 EPS 55c, consensus 50c

Reports Q1 revenue $54.18M, consensus $45.75M. Michael Peduzzi, president and CEO of both the Corporation and CNB Bank, stated, “Our first quarter results reflect several areas where our team is focused on translating potential revenue growth and cost-savings opportunities to realizing greater performance in the current interest rate environment. Though our total loan balances were down and our interest income was lower, this was a function of both (i) more early paydowns in the early part of the year, including some favorable payoffs of previously criticized loans, and (ii) a number of loans where term sheets with borrowers were approved, but the borrowers delayed obtaining financing expecting some reduction in rates. As the quarter progressed and the Federal Reserve seems to be staying put on rates for now, more borrowers are finalizing their borrowing plans, and both late quarter loan volume and pipeline build were stronger leading into the second quarter. This same pause by the Federal Reserve in interest rates has not provided as much opportunity to reduce pricing on interest-bearing deposit accounts as we would have wanted, but we were able to increase the number of our households and organic funding sources, and continue to increase our noninterest-bearing account relationships.”