CNB Community Bancorp, Inc. (OTCQX: CNBB), the parent company of County National Bank, has released its financial results for the fourth quarter and full year of 2024, showing a mixed performance with some positive trends despite challenges.
The Hillsdale, Michigan-based company reported a slight dip in fourth-quarter earnings, with net income decreasing by $72,000 to $2.4 million compared to the same period in 2023. However, due to a share buyback completed in September, basic earnings per share increased to $1.20, up $0.03 from the previous year.
For the full year 2024, CNB Community Bancorp showed stronger performance, with net income rising 9.1% to $11.6 million. This resulted in a basic earnings per share of $5.42, a significant increase from $4.91 in 2023.
The company’s financial position strengthened throughout the year, with total assets growing by 2.8% to $1.28 billion. Net loans saw a substantial increase of 8.2%, reaching $1.03 billion, while total deposits grew by 2.2% to $1.10 billion.
Joseph R. Williams, President and CEO, expressed satisfaction with the company’s strategic initiatives, stating, “The results from the strategic steps we took over this past year exceeded the return on equity & net interest margin that we expected for 2024.” He emphasized the company’s focus on relationship banking and successful expansion into new markets.
Key financial metrics showed mixed results. The annualized return on average assets (ROA) for the fourth quarter decreased slightly to 0.78%, down from 0.83% in the same period of 2023. However, the full-year ROA improved to 0.93% from 0.89% in the previous year. The return on average equity (ROE) for the fourth quarter declined to 9.87% from 10.63%, but the full-year ROE increased to 11.74% from 11.55% in 2023.
A notable highlight was the increase in book value per share, which rose by 10.8% to $48.65 at the end of 2024, reflecting the company’s growing equity position.
CNB Community Bancorp completed a significant share repurchase in the third quarter of 2024, buying back 145,000 shares at $38.50 per share. This move likely contributed to the improved earnings per share despite the slight decrease in net income for the fourth quarter.
The company’s net interest income showed positive trends, increasing by $1.1 million in the fourth quarter and by $3.9 million (9.6%) for the full year. Pre-tax, pre-provision income also saw improvements, rising to $3.4 million in the fourth quarter and $15.4 million for the full year, representing an 11.1% increase from 2023.
As CNB Community Bancorp moves into 2025, it appears positioned for continued growth, leveraging its strong local presence and focus on relationship banking. The company’s ability to expand its loan portfolio and maintain deposit growth in a challenging economic environment suggests resilience and effective management strategies.
