0000736772-18-000004.txt : 20180720 0000736772-18-000004.hdr.sgml : 20180720 20180720133147 ACCESSION NUMBER: 0000736772-18-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180720 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180720 DATE AS OF CHANGE: 20180720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CNB FINANCIAL CORP/PA CENTRAL INDEX KEY: 0000736772 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 251450605 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13396 FILM NUMBER: 18962108 BUSINESS ADDRESS: STREET 1: 1 SOUTH SECOND STREET STREET 2: P.O. BOX 42 CITY: CLEARFIELD STATE: PA ZIP: 16830 BUSINESS PHONE: 8147659621 MAIL ADDRESS: STREET 1: 1 SOUTH SECOND STREET STREET 2: P.O. BOX 42 CITY: CLEARFIELD STATE: PA ZIP: 16830 8-K 1 ccne720188-k.htm FORM 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
July 20, 2018
 
 
CNB FINANCIAL CORPORATION
(Exact name of Registrant as specified in its Charter)
 
 
 
 
 
 
 
 
Pennsylvania
 
000-13396
 
25-1450605
(State or other jurisdiction
of incorporation)
 
(Commission
File No.)
 
(IRS Employer
Identification Number)
1 South Second Street
PO Box 42
Clearfield, Pennsylvania 16830
(Address of principal executive offices)
Registrant’s telephone number, including area code: (814) 765-9621
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition
On July 20, 2018, CNB Financial Corporation (NASDAQ: CCNE), the parent company of CNB Bank, issued a press release describing its results of operations for the fiscal quarter ended June 30, 2018. That press release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
 
(a)
Not applicable.
(b)
Not applicable.
(c)
Not applicable.
(d)
Exhibits.
 
 
 
Exhibit
No.
  
Description
 
 
  
Press release of CNB Financial Corporation dated July 20, 2018

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
CNB Financial Corporation
 
 
 
 
Date: July 20, 2018
 
 
 
By:
 
/s/ Brian W. Wingard
 
 
 
 
 
 
Brian W. Wingard
 
 
 
 
 
 
Treasurer



 EX-99.1 2 ccne72018991.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

News Release
 
 
pressreleaseq22018fir_image1.gif
 
 
 
 
Contact: Brian W. Wingard
 
 
Treasurer
 
 
(814) 765-9621
 
 
FOR IMMEDIATE RELEASE


CNB FINANCIAL CORPORATION REPORTS SECOND QUARTER EARNINGS FOR 2018,
HIGHLIGHTED BY STRONG ORGANIC LOAN AND DEPOSIT GROWTH
Clearfield, Pennsylvania – July 20, 2018

CNB Financial Corporation (“CNB”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the second quarter and first six months of 2018. Highlights include the following:

•
Net income of $8.4 million, or $0.55 per share, in the second quarter of 2018, compared to net income of $6.7 million, or $0.44 per share, in the second quarter of 2017. Pre-tax income in the second quarter of 2018 was $10.0 million compared to $8.5 million in the second quarter of 2017 excluding securities gains of $155 thousand and a gain on sale of a branch of $536 thousand, an increase of 18.1%.
•
Net income of $15.5 million, or $1.02 per share, during the six months ended June 30, 2018, compared to net income of $13.2 million, or $0.87 per share, during the six months ended June 30, 2017. Pre-tax income for the six months ended June 30, 2018 was $18.2 million compared to $16.0 million for the same period in 2017 excluding securities gains of $1.5 million and a gain on sale of a branch of $536 thousand, an increase of 13.8%.
•
Annualized returns on average assets and equity of 1.07% and 12.62%, respectively, for the six months ended June 30, 2018, compared to 1.00% and 11.28%, respectively, for the six months ended June 30, 2017. The annualized return on average tangible equity was 15.08% and 13.70% during the six months June 30, 2018 and 2017, respectively.
•
Net interest margin on a fully tax-equivalent basis of 3.73% and 3.77% for the six months ended June 30, 2018 and 2017, respectively.
•
Loans of $2.34 billion as of June 30, 2018, compared to loans of $2.02 billion as of June 30, 2017, representing organic loan growth of 15.6%.
•
Deposits of $2.40 billion as of June 30, 2018, compared to deposits of $2.08 billion as of June 30, 2017, representing organic deposit growth of 15.6%.
•
Book value per share of $16.35 as of June 30, 2018 increased 2.3% compared to book value per share of $15.98 as of December 31, 2017 and tangible book value per share of $13.74 as of June 30, 2018 increased 3.0% compared to tangible book value per share of $13.33 as of December 31, 2017.
•
Book value per share of $16.35 as of June 30, 2018 increased 4.0% compared to book value per share of $15.72 as of June 30, 2017, and tangible book value per share of $13.74 as of June 30, 2018 increased 5.3% compared to tangible book value per share of $13.04 as of June 30, 2017.
•
Non-performing assets of $25.0 million, or 0.83% of total assets as of June 30, 2018, compared to $20.4 million, or 0.74% of total assets, as of December 31, 2017, and $21.2 million, or 0.79% of total assets, as of June 30, 2017.

Joseph B. Bower, Jr., President and CEO, stated, "Our performance for the quarter is a credit to the hard work and diligence of our team. Strong double-digit organic loan and deposit growth reflect the momentum and demand for our community banking model by customers in both our legacy and newer markets."

Net Interest Margin

Net interest margin on a fully tax equivalent basis was 3.73% and 3.77% for the six months ended June 30, 2018 and 2017, respectively. The yield on earning assets increased 17 basis points to 4.59% for the six months ended June 30, 2018 from 4.42% for the six months ended June 30, 2017. The cost of interest-bearing liabilities increased 24 basis points to 1.00% for the six months ended June 30, 2018 from 0.76% for the six months ended June 30, 2017.




Total interest and dividend income increased by 18.0% to $61.5 million for the six months ended June 30, 2018 from $52.1 million for the six months ended June 30, 2017. Net interest income increased by 13.0% to $49.9 million for the six months ended June 30, 2018 from $44.2 million for the six months ended June 30, 2017.

Asset Quality

During the three and six months ended June 30, 2018, CNB recorded a provision for loan losses of $1.9 million and $3.5 million, as compared to a provision for loan losses of $1.1 million and $2.2 million for the three and six months ended June 30, 2017. Net chargeoffs during the three and six months ended June 30, 2018 were $538 thousand and $1.1 million, compared to net chargeoffs of $411 thousand and $1.2 million for the three and six months ended June 30, 2017. CNB Bank net chargeoffs totaled $139 thousand and $58 thousand during the six months ended June 30, 2018 and 2017, or 0.01% and 0.01%, respectively, of average CNB Bank loans. Holiday Financial Services Corporation is CNB’s consumer discount company and recorded net chargeoffs totaling $968 thousand and $1.2 million during the six months ended June 30, 2018 and 2017, respectively.

In the second quarter of 2018, CNB identified a commercial and industrial relationship that, while performing in accordance with its contractual terms and current with scheduled principal and interest payments, filed for bankruptcy. As of June 30, 2018, the outstanding principal balance of the relationship is $5.5 million, and the specific loan loss reserve recorded during the quarter is $758 thousand.

Non-Interest Income

Net realized gains on available-for-sale securities were $0 for the six months ended June 30, 2018, compared to $1.5 million during the six months ended June 30, 2017. In addition, CNB realized a gain on the sale of a branch in the second quarter of 2017 of $536 thousand. Excluding the effects of these gains associated with the branch sale and the sale of available for sale securities in 2017, non-interest income for the six months ended June 30, 2018 and 2017 was $10.4 million and $8.8 million, respectively.

As a result of CNB’s continued focus on growing its Private Client Solutions division, wealth and asset management revenues were $2.1 million for the first six months of 2018, an increase of 16.3% from $1.8 million in the first six months of 2017. In addition, as a result of its continued organic growth, CNB experienced an increase in service charges in deposit accounts of $263 thousand, or 11.7%, in the first six months of 2018 compared to the first six months of 2017. Similarly, other service charges and fees increased $253 thousand, or 23.3%, in the first six months of 2018 compared to the first six months of 2017. Income from investments in Small Business Investment Companies was $340 thousand in the first six months of 2018 compared to $37 thousand in the first six months of 2017, which is reported as a component of other non-interest income.

Non-Interest Expenses

Total non-interest expenses were $19.5 million and $38.5 million during the three and six months ended June 30, 2018, compared to $17.8 million and $34.8 million during the three and six months ended June 30, 2017. Salaries and benefits expense increased $1.8 million, or 9.8%, during the six months ended June 30, 2018 compared to the six months ended June 30, 2017. As of June 30, 2018, CNB had 539 full-time equivalent staff, compared to 493 full-time equivalent staff as of June 30, 2017, an increase of 9.3%. The remainder of the increase in non-interest expenses was primarily a result CNB’s continued growth and the servicing of a larger customer base. Total households serviced at June 30, 2018 were 61,354, compared to 57,808 households at June 30, 2017, an increase of 6.1%.

Income Tax Expense

As a result of the enactment of the Tax Cuts and Jobs Act in the fourth quarter of 2017, income tax expense decreased $2.2 million, or 45.7%, during the six months ended June 30, 2018 compared to the six months ended June 30, 2017. CNB’s effective tax rate was 14.6% in the first six months of 2018 compared to 27.2% in the first six of 2017.

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated assets of approximately $3.0 billion that conducts business primarily through CNB Bank, CNB Financial Corporation’s principal subsidiary. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division and 42 full-service offices in Pennsylvania, Ohio, and New York. CNB Bank’s divisions include ERIEBANK, based in Erie, Pennsylvania with offices in northwest Pennsylvania and northeast Ohio; FCBank, based in Worthington, Ohio with offices in central Ohio; and BankOnBuffalo, based in Buffalo, New York with offices in northwest New York. CNB Bank is headquartered in Clearfield, Pennsylvania with offices in central and north central Pennsylvania. More information about CNB Financial Corporation and CNB Bank may be found on the Internet at www.cnbbank.bank.


Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to CNB’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond CNB’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” CNB’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in CNB’s annual and quarterly reports.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. CNB undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.

Financial Tables

The following tables supplement the financial highlights described previously for CNB Financial Corporation. All dollars are stated in thousands, except share and per share data.

 
 
 
(unaudited)
 
(unaudited)
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
%
 
 
 
%
 
 
 
2018
2017
change
 
2018
2017
change
Income Statement
 
 
 
 
 
 
 
Interest income
$
32,099

$
27,003

18.9
 %
 
$
61,486

$
52,107

18.0
 %
Interest expense
6,273

4,014

56.3
 %
 
11,560

7,916

46.0
 %
Net interest income
25,826

22,989

12.3
 %
 
49,926

44,191

13.0
 %
Provision for loan losses
1,905

1,134

68.0
 %
 
3,536

2,150

64.5
 %
Net interest income after provision for loan losses
23,921

21,855

9.5
 %
 
46,390

42,041

10.3
 %
 
 
 
 
 
 
 
 
 
 
Non-interest income
 
 
 
 
 
 
 
Service charges on deposit accounts
1,271

1,165

9.1
 %
 
2,518

2,255

11.7
 %
Other service charges and fees
723

559

29.3
 %
 
1,341

1,088

23.3
 %
Wealth and asset management fees
1,090

952

14.5
 %
 
2,120

1,823

16.3
 %
Net realized gains on available-for-sale securities
—

155

NA

 
—

1,538

NA

Net realized and unrealized gains on trading securities
237

127

86.6
 %
 
251

315

(20.3
)%
Mortgage banking
310

247

25.5
 %
 
518

431

20.2
 %
Bank owned life insurance
339

364

(6.9
)%
 
739

716

3.2
 %
Card processing and interchange income
1,103

970

13.7
 %
 
2,074

1,848

12.2
 %


Gain on sale of branch
—

536

NA

 
—

536

NA

Other
533

14

NA

 
796

312

155.1
 %
Total non-interest income
5,606

5,089

10.2
 %
 
10,357

10,862

(4.6
)%
 
 
 
 
 
 
 
 
 
 
Non-interest expenses
 
 
 
 
 
 
 
Salaries and benefits
10,131

8,902

13.8
 %
 
19,666

17,907

9.8
 %
Net occupancy expense of premises
2,634

2,257

16.7
 %
 
5,130

4,797

6.9
 %
FDIC insurance premiums
378

370

2.2
 %
 
676

574

17.8
 %
Core Deposit Intangible amortization
248

331

(25.1
)%
 
496

662

(25.1
)%
Card processing and interchange expenses
638

614

3.9
 %
 
1,372

1,036

32.4
 %
Other
5,514

5,323

3.6
 %
 
11,202

9,855

13.7
 %
Total non-interest expenses
19,543

17,797

9.8
 %
 
38,542

34,831

10.7
 %
 
 
 
 
 
 
 
 
 
 
Income before income taxes
9,984

9,147

9.2
 %
 
18,205

18,072

0.7
 %
Income tax expense
1,543

2,464

(37.4
)%
 
2,667

4,909

(45.7
)%
Net income
8,441

6,683

26.3
 %
 
15,538

13,163

18.0
 %
 
 
 
 
 
 
 
 
 
 
Average diluted shares outstanding
15,216,310

15,206,161

 
 
15,208,687

15,050,719

 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per share
0.55

0.44

25.0
 %
 
1.02

0.87

17.2
 %
Cash dividends per share
0.165

0.165

—
 %
 
0.33

0.33

—
 %
 
 
 
 
 
 
 
 
 
 
Payout ratio
30
%
38
%
 
 
32
%
38
%
 
 
 
 
 
 
 
 
 
 
 
Average Balances
 
 
 
 
 
 
 
Loans, net of unearned income
2,308,261

1,993,287

 
 
2,255,721

1,951,035

 
Investment securities
491,078

495,335

 
 
453,588

480,238

 
Total earning assets
2,799,339

2,488,622

 
 
2,709,309

2,431,273

 
Total assets
2,956,577

2,659,761

 
 
2,891,824

2,625,727

 
Non interest-bearing deposits
310,069

301,154

 
 
310,800

290,696

 
Interest-bearing deposits
1,978,740

1,756,011

 
 
1,923,370

1,736,909

 
Shareholders' equity
247,607

239,347

 
 
246,194

233,445

 
Tangible shareholders' equity (*)
207,585

198,208

 
 
206,050

192,141

 
 
 
 
 
 
 
 
 
 
 
Average Yields
 
 
 
 
 
 
 
Loans, net of unearned income
5.05
%
4.87
%
 
 
4.95
%
4.77
%
 
Investment securities
2.70
%
2.87
%
 
 
2.81
%
2.99
%
 
Total earning assets
4.64
%
4.47
%
 
 
4.59
%
4.42
%
 
Interest-bearing deposits
0.75
%
0.51
%
 
 
0.69
%
0.50
%
 
Interest-bearing liabilities
1.09
%
0.70
%
 
 
1.00
%
0.76
%
 
 
 
 
 
 
 
 
 
 
 
Performance Ratios (annualized)
 
 
 
 
 
 
 
Return on average assets
1.14
%
1.01
%
 
 
1.07
%
1.00
%
 


Return on average equity
13.64
%
11.17
%
 
 
12.62
%
11.28
%
 
Return on average tangible equity (*)
16.27
%
13.49
%
 
 
15.08
%
13.70
%
 
Net interest margin (FTE)
3.74
%
3.73
%
 
 
3.73
%
3.77
%
 
 
 
 
 
 
 
 
 
 
 
Loan Charge-Offs
 
 
 
 
 
 
 
Net loan charge-offs
538

411

 
 
1,107

1,211

 
Net loan charge-offs / average loans
0.09
%
0.08
%
 
 
0.10
%
0.12
%
 
 
 
 
 
 
 
 
 
 
 
The following is a non-GAAP disclosure of pre-tax net income excluding the effects of net realized gains on the sale of available for sale securities and the gain on the sale of a branch:
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited)
 
(unaudited)
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
%
 
 
 
%
 
 
 
2018
2017
change
 
2018
2017
change
 
 
 
 
 
 
 
 
 
 
Pre-tax net income, GAAP basis
9,984

9,147

9.2
 %
 
18,205

18,072

0.7
 %
Net realized gains on available-for-sale securities
—

(155
)
NA

 
—

(1,538
)
NA

Gain on sale of branch
—

(536
)
NA

 
—

(536
)
NA

Pre-tax net income, non-GAAP
9,984

8,456

18.1
 %
 
18,205

15,998

13.8
 %

 
(unaudited)
 
(unaudited)
 
 
 
 
June 30,
December 31,
June 30,
 
% change versus
 
2018
2017
2017
 
12/31/17
6/30/17
 
 
 
 
 
Ending Balance Sheet
 
 
 
 
 
 
Loans, net of unearned income
$
2,335,292

$
2,145,959

$
2,020,829

 
8.8
 %
15.6
 %
Loans held for sale
1,661

852

1,652

 
95.0
 %
0.5
 %
Investment securities
458,440

416,859

458,816

 
10.0
 %
(0.1
)%
FHLB and other equity interests
22,689

21,517

23,298

 
5.4
 %
(2.6
)%
Other earning assets
2,786

2,199

1,756

 
26.7
 %
58.7
 %
   Total earning assets
2,820,868

2,587,386

2,506,351

 
9.0
 %
12.5
 %
 
 
 
 
 
 
 
Allowance for loan losses
(22,122
)
(19,693
)
(17,269
)
 
12.3
 %
28.1
 %
Goodwill
38,730

38,730

38,730

 
—
 %
—
 %
Core deposit intangible
1,129

1,625

2,192

 
(30.5
)%
(48.5
)%
Other assets
171,024

160,725

148,905

 
6.4
 %
14.9
 %
   Total assets
$
3,009,629

$
2,768,773

$
2,678,909

 
8.7
 %
12.3
 %
 
 
 
 
 
 
 
Non interest-bearing deposits
$
314,906

$
321,858

$
313,871

 
(2.2
)%
0.3
 %


Interest-bearing deposits
2,086,659

1,845,957

1,762,918

 
13.0
 %
18.4
 %
   Total deposits
2,401,565

2,167,815

2,076,789

 
10.8
 %
15.6
 %
 
 
 
 
 
 
 
Borrowings
257,812

257,359

262,940

 
0.2
 %
(2.0
)%
Subordinated debt
70,620

70,620

70,620

 
—
 %
—
 %
Other liabilities
29,739

29,069

28,268

 
2.3
 %
5.2
 %
 
 
 
 
 
 
 
Common stock
—

—

—

 
NA

NA

Additional paid in capital
97,059

97,042

96,490

 
—
 %
0.6
 %
Retained earnings
158,790

148,298

142,409

 
7.1
 %
11.5
 %
Treasury stock
(608
)
(1,087
)
(541
)
 
(44.1
)%
12.4
 %
Accumulated other comprehensive income (loss)
(5,348
)
(343
)
1,934

 
NA

NA

   Total shareholders' equity
249,893

243,910

240,292

 
2.5
 %
4.0
 %
 
 
 
 
 
 
 
   Total liabilities and shareholders' equity
$
3,009,629

$
2,768,773

$
2,678,909

 
5.1
 %
8.6
 %
 
 
 
 
 
 
 
Ending shares outstanding
15,285,430

15,264,740

15,285,371

 
 
 
 
 
 
 
 
 
 
Book value per share
$
16.35

$
15.98

$
15.72

 
2.3
 %
4.0
 %
Tangible book value per share (*)
$
13.74

$
13.33

$
13.04

 
3.0
 %
5.3
 %
 
 
 
 
 
 
 
Capital Ratios
 
 
 
 
 
 
Tangible common equity / tangible assets (*)
7.07
%
7.46
%
7.56
%
 
 
 
Tier 1 leverage ratio
8.14
%
8.45
%
8.45
%
 
 
 
Common equity tier 1 ratio
9.61
%
10.00
%
10.27
%
 
 
 
Tier 1 risk based ratio
10.49
%
10.97
%
11.29
%
 
 
 
Total risk based ratio
13.67
%
14.32
%
14.71
%
 
 
 
 
 
 
 
 
 
 
Asset Quality
 
 
 
 
 
 
Non-accrual loans
$
24,318

$
19,232

$
19,995

 
 
 
Loans 90+ days past due and accruing
311

477

314

 
 
 
   Total non-performing loans
24,629

19,709

20,309

 
 
 
Other real estate owned
418

710

889

 
 
 
   Total non-performing assets
$
25,047

$
20,419

$
21,198

 
 
 
 
 
 
 
 
 
 
Loans modified in a troubled debt restructuring (TDR):
 
 
 
 
 
 
   Performing TDR loans
$
7,912

$
8,344

$
8,253

 
 
 
   Non-performing TDR loans **
9,388

8,959

2,935

 
 
 
        Total TDR loans
$
17,300

$
17,303

$
11,188

 
 
 
 
 
 
 
 
 
 
Non-performing assets / Loans + OREO
1.07
%
0.95
%
1.05
%
 
 
 
Non-performing assets / Total assets
0.83
%
0.74
%
0.79
%
 
 
 
Allowance for loan losses / Loans
0.95
%
0.92
%
0.85
%
 
 
 


 
 
 
 
 
 
 
* - Tangible common equity, tangible assets and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of stockholders’ equity. Tangible assets is calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets. Return on average tangible equity is calculated by dividing annualized net income by average tangible assets. Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding. CNB believes that these non-GAAP financial measures provide information to investors that is useful in understanding its financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
 
 
** - Nonperforming TDR loans are also included in the balance of non-accrual loans in the previous table.
 
 
 
 
 
 
 
 
 
 
(unaudited)
 
(unaudited)
 
 
 
 
June 30,
December 31,
June 30,
 
 
 
 
2018
2017
2017
 
 
 
 
 
 
 
 
 
 
Shareholders' equity
$
249,893

$
243,910

$
240,292

 
 
 
     Less goodwill
38,730

38,730

38,730

 
 
 
     Less core deposit intangible
1,129

1,625

2,192

 
 
 
Tangible common equity
$
210,034

$
203,555

$
199,370

 
 
 
 
 
 
 
 
 
 
Total assets
$
3,009,629

$
2,768,773

$
2,678,909

 
 
 
     Less goodwill
38,730

38,730

38,730

 
 
 
     Less core deposit intangible
1,129

1,625

2,192

 
 
 
Tangible assets
$
2,969,770

$
2,728,418

$
2,637,987

 
 
 
 
 
 
 
 
 
 
Ending shares outstanding
15,285,430

15,264,740

15,285,371

 
 
 
 
 
 
 
 
 
 
Tangible book value per share
$
13.74

$
13.33

$
13.04

 
 
 
Tangible common equity/Tangible assets
7.07
%
7.46
%
7.56
%
 
 
 


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