CNB Financial Corp 10-K Summary (Year Ended Dec 31, 1995)
Business Context and Reporting Period
CNB Financial Corporation is a Pennsylvania-based bank holding company incorporated in 1983. Its primary operating subsidiary is County National Bank, a nationally chartered institution headquartered in Clearfield, Pennsylvania. The bank serves a trade area in northern and central Pennsylvania with an estimated population of 100,000, offering full-service banking including commercial, mortgage, and consumer loans. As of December 31, 1995, the bank operated 11 full-service branches and one drive-in facility, with a new branch scheduled to open in Houtzdale in January 1996.
Key Financial Metrics
The filing provides detailed average balance sheet data and interest rate analysis but does not explicitly state total revenue, net income, or cash flow figures in the text provided; these are incorporated by reference from the Annual Shareholder's Report.
- Total Assets: Average consolidated assets were $280.5 million in 1995, up from $269.5 million in 1994.
- Total Loans: Average loan portfolio grew to $188.1 million (8.96% yield) from $177.2 million (8.36% yield).
- Total Deposits: Year-end deposits totaled $255.8 million, an increase from $229.6 million in 1994.
- Net Interest Margin: 4.83% in 1995, compared to 4.89% in 1994.
- Net Interest Spread: 4.04% in 1995, compared to 4.24% in 1994.
- Allowance for Loan Losses: Ended the year at $2.145 million.
- Shareholder's Equity: Average equity was $36.4 million.
Material Changes vs. Prior Period
Comparing 1995 to 1994, the Corporation experienced growth in both assets and liabilities, driven primarily by loan expansion and deposit growth.
- Interest Income Growth: Total interest income increased by $2.24 million to $22.05 million. This was driven by a $1.45 million increase due to higher rates and a $0.79 million increase due to volume.
- Interest Expense Growth: Total interest expense rose by $1.99 million to $9.22 million. Rate increases accounted for $1.63 million of this rise, while volume increases contributed $0.32 million.
- Net Interest Income: Increased by $0.25 million to $12.82 million.
- Loan Portfolio Composition: Commercial loans grew significantly (average balance up $7.1 million), while mortgage and installment loans saw modest growth.
- Asset Quality: Non-accrual loans decreased to $0.414 million from $0.957 million in 1994. However, accruing loans past due 90 days or more increased to $2.503 million from $0.307 million.
Outlook, Risks, and Management Commentary
Management notes that the banking industry remains extremely competitive, facing pressure from regional banks, thrifts, and non-bank financial service providers. The Bank holds a 33.3% share of total bank deposits in its primary market area.
- Monetary Policy: Earnings are significantly affected by Federal Reserve actions regarding interest rates and money supply. Management states no prediction can be made regarding future interest rate changes.
- Risk Management: The loan portfolio is diversified to avoid material concentration in any single industry. Management believes problem loans ($3.9 million as of year-end) are adequately insured with minimal expected losses.
- Legal Proceedings: No material pending legal proceedings were reported.
- Guidance: The filing does not contain specific forward-looking financial guidance or earnings projections.
Investor Verification Checklist
- Verify total revenue, net income, and earnings per share figures in the Annual Shareholder's Report (incorporated by reference), as these specific totals are not explicitly listed in the provided text.
- Review the "Quarterly Summary of Earnings" (Page 17 of Annual Report) for trends in profitability throughout 1995.
- Confirm the impact of the increase in accruing loans past due 90 days ($2.5 million) on future charge-off rates.
- Assess the competitive landscape in Clearfield, Centre, Elk, and McKean counties given the Bank's 17.35% market share of total deposits.
- Check the Proxy Statement for details on executive compensation and director ownership.