CNB Community Bancorp, Inc. Reports Fourth Quarter 2018 Results

HILLSDALE, Mich., Jan. 17, 2019 /PRNewswire/ -- CNB Community Bancorp, Inc. (OTC: CNBB), the parent company of County National Bank, today announced earnings for the three and twelve months ended December 31, 2018. Earnings during the fourth quarter of 2018 totaled $2.00 million, an increase of $550,000, or 37.9%, from $1.45 million during the three months ended December 31, 2017. Basic earnings per share increased to $0.95 during the three months ended December 31, 2018, up $0.25 from $0.70 during the fourth quarter of 2017. For the year ended December 31, 2018, CNB Community Bancorp, Inc. (the "Company") reported net income of $8.47 million, an increase of $2.42 million, or 40.1%, from $6.05 million during the year ended December 31, 2017. Basic earnings per share increased to $4.06 during the year ended December 31, 2018, up $1.13 from $2.93 during 2017.

The annualized return on average assets (ROA) increased to 1.20% for the three months ended December 31, 2018, up from 0.93% for the three months ended December 31, 2017. The annualized return on average equity (ROE) increased to 14.2% during the current quarter, up from 11.6% during the fourth quarter of 2017. ROA increased to 1.31% during the year ended December 31, 2018, up from 1.01% during 2017. ROE increased to 15.8% during 2018, up from 12.7% during the year ended December 31, 2017. Book value per share increased to $26.97 at December 31, 2018, up $2.87 from $24.10 at December 31, 2017.

Craig S. Connor, Chairman and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, remarked, "2018 has proven out to be an outstanding year for CNB, both in terms of growth and earnings.  It's been especially rewarding watching our hard working and talented staff contribute so mightily to our very strong year."  Furthermore, County National Bank President John Waldron stated, "Communities such as the ones here in South Central Michigan have been the backbone of our nation since before its inception and they continue to provide the support that America needs to be successful.  Our bank has been committed to these communities through a number of services such as personal and small business banking for these last eighty-four years.  I look at 2018 with pride and thankfulness while focusing on continuing to work with our communities in 2019 and beyond." 

Financial Highlights
December 31, 2018 compared to December 31, 2017
Balance Sheet

• Total assets increased $40.6 million, or 6.5%, to $662.1 million.
• Net loans increased $54.0 million, or 10.5%, to $567.6 million at December 31, 2018 compared to $513.6 million at December 31, 2017.
• Total deposits increased $34.9 million, or 6.4%, to $578.9 million at December 31, 2018.
• Other borrowings decreased $1.1 million to $23.9 million at December 31, 2018.
• Total equity increased $6.5 million to $56.5 million.
• Book value per share increased by $2.87, or 11.9%, to $26.97 at December 31, 2018, up from $24.10 at December 31, 2017.

Asset Quality

• Net charge-offs increased $166,000 due to charge-offs of $84,000 compared to recoveries of $82,000 in 2017.
• Net charges-offs as a percent of average loans increased to 0.02% from -0.02%.
• The ratio of nonperforming loans to total loans decreased to 0.42% from 0.49% and the ratio of nonperforming assets to total assets decreased to 0.40% from 0.48%.

Income Statement

Three months ended December 31, 2018 compared to December 31, 2017

• Net income increased $550,000, or 37.9%, to $2.00 million and basic EPS increased $0.25, or 35.7%, to $0.95 from $0.70.
• Net interest income increased $947,000 to $6.96 million.
• Return on average equity increased to 14.2% from 11.6%.
• Return on average assets increased to 1.20% from 0.93%.

Year ended December 31, 2018 compared to December 31, 2017

• Net income increased $2.42 million, or 40.1%, to $8.47 million and basic EPS increased $1.13, or 38.6%, to $4.06 from $2.93.
• Net interest income increased by $2.49 million to $26.00 million.
• The provision for loan losses decreased by $73,000 to $206,000.
• Return on average equity increased to 15.8% from 12.7%.
• Return on average assets increased to 1.31% from 1.01%.
• The Company's efficiency ratio improved to 66.8% from 70.9%.

Safe Harbor Statement

This news release and other releases and reports issued by the Company may contain "forward-looking statements." The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company is including this statement for purposes of taking advantage of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

SOURCE CNB Community Bancorp, Inc.