CNB Financial Corp., the Clearfield, Pa. -based parent company of FCBank, announced a profit of $5.51 million, or 38-cents per share, in the fourth quarter of 2015, an 18.3 percent drop from $6.74 million, or 47-cents per share, in 2014.
Last year, the company reported a net income of $22.2 million, or $1.54 per share, compared with $23.1 million for 2014.
The decrease occured because there was about $700,000 less in purchase accounting net accretion to loan interest income in 2015 versus 2014, and $308,000 of merger costs related to the company’s pending acquisition of Mentor-based Lake National Bank, which was announced last month, as well as the addition of staff and related expenses in 2015.
CNB expects the acquisition of Lake National Bank to close in the third quarter of 2016.
“We are very excited to have Lake National as part of our ERIEBANK team. Our strategy of growing organically is enhanced by the markets in which they are located and which they are already developing,” said Joseph B. Bower, Jr., President and chief executive officer, in a statement. “CNB’s loan growth in 2015 was extremely positive. Our outlook for the next several quarters, however, is good but not as rapid as last year. Competitive pressures from banks and non-bank competition are resulting in lower projected growth for 2016 as we maintain our pricing and credit quality discipline.”
There were $1.6 billion in total loans for 2015, an increase of $222.5 million, or 16.4 percent, from 2014. The company said all loan growth in 2015 was organic. Total deposits of $1.8 billion in 2015 were down 1.7 percent from 2014, but is comprised of a 7.7-percent increase in non-interest bearing deposits and a decrease of 3.2 percent in interest-bearing deposits. CNB’s loan to deposit ratio increased from 73.4 percent in 2014 to 86.9 percent in 2015.
The net interest margin was 3.73 percent for 2015 compared with 3.82 percent in 2014. The net interest income was $2.2 million of net accretion, related to acquired loans, which was down from $2.9 million included in 2014.
Aside from the impact of the net accretion, net interest income increased by $800,000 for 2015 as compared with 2014.
Returns on average assets and equity of 0.99 percent and 11.23 percent, respectively, for 2015 declined from 1.07 percent and 12.76 percent, respectively, for 2014.
Non-performing assets of $13.2 million, or 0.57 percent of total assets as of last year, were up compared with $10.2 million, or 0.47 percent of total assets, in 2014.
FCBank is the second largest bank in Crawford County with two offices in Bucyrus.
