Business
CNB Financial Corporation Reports Fourth Quarter 2020 Earnings per Share of $0.40 Compared to $0.69 for Fourth Quarter 2019
Fourth quarter 2020 includes adoption of the Current Expected Credit Loss (“CECL”) methodology of accounting for credit losses and a prepayment of $160
About this update from Cnb Financial Corporation
[{"type":"text","content":"Fourth quarter 2020 includes adoption of the Current Expected Credit Loss (“CECL”) methodology of accounting for credit losses and a prepayment of $160 million in borrowings from the Federal Home Loan Bank of Pittsburgh (“FHLB”). CLEARFIELD, Penn., Jan. 26, 2021 (GLOBE NEWSWIRE) -- CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the fourth quarter ended December 31, 2020. Joseph B. Bower, Jr., President and CEO, stated, “The year of 2020 will go down in history as one for all to remember. CNB had the daunting task, like all community banks, of helping calm the concerns of local businesses and aiding them in keeping their doors open and their employees engaged. And with the entire world focused on maintaining health and safety, expansion of the economy was not paramount. We took the opportunity to review our balance sheet, delivery channels and processes to improve for the future. Branch consolidations, an expansion of our BankOnBuffalo franchise, capital raise, prepayment of long-term debt, improved technology infrastructure both internally and in the delivery channels, carbon footprint reduction initiatives, and improved liquidity are a few of the major initiatives accomplished by our team. We are excited for our communities’ 2021 prospects as we successfully navigate through this pandemic and begin to move forward again.” CECL Adoption and FHLB Borrowing Prepayment Section 4014 of the CARES Act was issued in March 2020 that provided financial institutions with optional temporary relief from having to comply with CECL on January 1, 2020. On December 31, 2020 CNB adopted Accounting Standard Update 2016-13, commonly referred to as CECL, effective January 1, 2020. The CECL methodology replaces the former probable incurred loss methodology, which requires entities to estimate credit losses over the life of a financial asset measured at amortized cost or off-balance sheet exposure. At adoption, CNB recorded a $5.0 million increase to its allowance for credit losses, of which $3.4 million was recorded as a reduction of retained earnings. As a result of the adoption of CECL, coupled with the impact of ongoing trends in CNB’s loan portfolio and the COVID-19 pandemic, the allowance for credit losses increased from $19.5 million, at December 31, 2019,...