CNB Community Bancorp, Inc. (OTCQX: CNBB), the parent company of County National Bank (the “Bank”), today announced earnings for the three and nine months ended September 30, 2026. Earnings during the third quarter of 2026 totaled $2.7 million, a decrease of $492,000, or 15.5%, compared to the $3.2 million earned during the three months ended September 30, 2025. The decrease in net income was predominately the result of an increase in the provision for credit losses partially offset by an increase in net interest income, an increase in noninterest income driven by increases in Wealth Management, and a decrease in noninterest expense driven by a reduction in compensation expense. Basic earnings per share for CNB Community Bancorp, Inc. (the “Company”) decreased to $1.35 during the three months ended September 30, 2026, down $0.20 from $1.55 for the third quarter of 2025. For the nine months ended September 30, 2026, the Company reported net income of $8.8 million, unchanged from the nine months ended September 30, 2025. The minimal variance year-over-year was primarily resultant from a $2.6 million increase in the provision for credit loss and infrastructure maintenance and expansion of $330,000 offset by the increase in net interest income of $2.9 million. Basic earnings per share increased to $4.45 during the nine months ended September 30, 2026, up $0.13 from $4.32 for the first nine months of 2025.

The annualized return on average assets (“ROA”) decreased to 0.79% for the three months ended September 30, 2026, down 17 basis point from 0.96% for the three months ended September 30, 2025. The annualized return on average equity (“ROE”) decreased to 9.52% for the current quarter, down from 11.89% for the third quarter of 2025. ROA declined to 0.87% for the nine months ended September 30, 2026, down four basis points from the 0.91% during the first nine months of 2025. ROE was 10.77% during the first nine months of 2026, down from 11.49% during the nine-month period ended September 30, 2025. Book value per share increased to $56.25 at September 30, 2026, up $3.59 from $52.66 at September 30, 2025.

Joseph R. Williams, President and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, commented, “I am very pleased with the continued strong performance of our Net Interest Margin at 4.06% through September 30, 2026 and 4.09% for the third quarter of 2026 as traditional banks are reliant on this loan-to-deposit rate gap. I say this while noting that valuations of our nonperforming credits caused net charge offs of $1.9 million during this quarter. However, I believe in our strategy of community lending as we exist for our communities because of the support of our shareholders and efforts of our associates.”

Mr. Williams continued, “CNB’s margin enters the final quarter with a strong tailwind due to asset repricing. Therefore, we will continue to monitor our balance sheet but with the knowledge that we have built a strong and resilient franchise here at County National Bank.”

Financial Highlights

  • Total assets increased $36.5 million from September 30, 2025, or 2.8%, to $1.35 billion, and by $33.2 million, or 2.5%, from December 31, 2025.

  • Net loans increased $54.2 million, or 5.1%, to $1.12 billion at September 30, 2026, compared to $1.07 billion at September 30, 2025, and increased $39.4 million, or 3.6%, from December 31, 2025.

  • Total deposits increased $4.7 million, or 0.4%, to $1.12 billion at September 30, 2026, from $1.12 billion at September 30, 2025, and increased $5.6 million, or 0.5%, from December 31, 2025.

  • Tangible book value per share increased $3.58, or 7.0%, to $54.94 at September 30, 2026, up from $51.36 at September 30, 2025 and up $2.54 from $52.40 at December 31, 2025.

  • The Company has repurchased 29,282 shares to date in 2026 as part of the ongoing buyback announced earlier in 2026, paying an average of $45.39 per share. Total shares outstanding are 2,016,453 as of September 30, 2026 compared to 2,038,598 at December 31, 2025.

  • Net income decreased from the third quarter of 2025 by $492,000, or 15.5%, to $2.7 million in the third quarter of 2026, and basic EPS decreased $0.20, or 12.8%, to $1.35 from $1.55.

  • Net interest income for the third quarter of 2026 increased $801,000 to $13.2 million from the

  • third quarter of 2025.

  • Pre-tax, pre-provision net income increased to $5.5 million in the third quarter of 2026 from $4.2 in the third quarter of 2025 or 30.4%.

Balance Sheet Review

The Company’s assets totaled $1.35 billion at September 30, 2026, compared to $1.32 billion at December 31, 2025, and September 30, 2025. The change in composition of assets was predominately related to the fluctuation in investable assets as funding of the asset side of the balance sheet has varied with cash being repositioned to investments and new credits being funded by a combination of an increase in borrowings and growth in client deposits.

Net loans totaled $1.12 billion at September 30, 2026, compared to $1.08 billion at December 31, 2025, and $1.07 billion at September 30, 2025. The loan portfolio at September 30, 2026 included: $662.4 million in commercial real estate loans, $244.3 million in commercial loans, $192.5 in residential real estate loans, and $36.0 million in consumer loans.

Nonperforming assets at September 30, 2026 were $27.8 million compared to $16.8 million at December 31, 2025, and $18.9 million at September 30, 2025. Nonperforming assets as a percentage of total assets were 2.05% at September 30, 2026, 1.27% at December 31, 2025, and 1.43% at September 30, 2025.

Nonperforming loans at September 30, 2026 were $27.5 million, an increase of $10.9 million, or 65.7%, from the $16.6 million balance at December 31, 2025, and an increase of $8.7 million, or 46.3%, from the $18.8 million at September 30, 2025. Nonperforming loans as a percentage of total loans increased to 2.42% at September 30, 2026, compared to 1.51% at December 31, 2025, and from 1.74% at September 30, 2025. The level within CNB’s nonperforming credits increased based mainly upon the addition of two large credits that involve commercial real estate. These two credits total approximately $10 million and are in the process of a workout with both credits having been reviewed individually for impairment as collateral dependent loans. The remaining portion of nonperforming loans remains consistent with previously reported levels with exceptions for charge offs and paydowns.

During the third quarter of 2026, a provision for credit losses of $2.2 million was recorded, which is an increase of $1.9 million from a provision of $245,000 recorded during the third quarter of 2025. Net charge-offs totaled $1.9 million during the third quarter of 2026 compared to net charge-offs of $418,000 in the third quarter of 2025. The charge-offs from the current quarter were predominately related to commercial real estate credits that were collateral dependent nonperforming credits which were further adjusted due to the Bank’s ongoing monitoring of the value of our collateral positions through a $2.0 million charge-off.

Net charge-offs (annualized) as a percentage of average loans was 0.65% for third quarter of 2026, which was an increase from the net charge-offs of 0.16% in the third quarter of 2025. The allowance for credit losses totaled $12.9 million at September 30, 2026, compared to $12.1 million at December 31, 2025, and $12.7 million at September 30, 2025. The allowance for credit losses as a percentage of total loans was 1.13% at September 30, 2026, which is an increase from 1.10% as of December 31, 2025, and a decrease from 1.17% at September 30, 2025. The change in the allowance was primarily driven by updates to our qualitative framework to reflect evolving macroeconomic conditions and shifting portfolio risk characteristics. This increase of the allowance fully offset the $1.9 million in net charge-offs recognized during the third quarter. The allowance will continue to be adjusted based upon the current and forward-looking issues identified within the portfolio.

Total investment securities, exclusive of the Federal Home Loan Bank of Indianapolis, Federal Reserve Bank and other stock without readily determined fair value, aggregated to $157.8 million at September 30, 2026, a decrease of 7.3% from $170.2 million at December 31, 2025, and an increase of 1.2% from $156.0 million at September 30, 2025. The decline from year-end primarily reflects valuation adjustments driven by shifting interest rate environments, alongside normal principal amortization and maturities. Management executed no material purchases or strategic portfolio reallocations during the nine-month period ended September 30, 2026 but had over $15 million in purchases in the fourth quarter of 2025. While continued growth of the loan portfolio remains the primary focus for Bank management, the Bank will continue to manage the securities portfolio through prudent investment in securities that align with the Bank’s investment criteria when excess cash is available.

Noninterest bearing deposits have decreased by $17.5 million (8.1%) from $216.3 million at December 31, 2025, and $16.1 million (7.5%) from $214.9 million one year ago. Interest bearing deposits increased from $901.2 million at December 31, 2025, and from $903.5 million at September 30, 2025, to $924.3 million at September 30, 2026. The fluctuation and shift in the make-up of deposits results from multiple factors including the ongoing efforts by our associates, the rate environment, and the needs of our clients. The expectation remains that competition and the rate environment will further impact the amount and type of deposits within the balance sheet.

The Company’s outstanding borrowings increased by $23.1 million to $106.1 million at September 30, 2026 compared to $83.0 million at December 31, 2025 and by $25.5 million from $80.6 million at September 30, 2025. The increase from year-end 2025 was due to additional borrowings of $40.4 million ($440,000 at the holding company) partially offset by the normal paydown of senior debt at the holding company of $1.7 million and a maturity of the short-term funding of the Bank’s loan growth of $15.6 million. The year-over-year increase was a combination of the short-term funding of loan growth at the Bank ($40.0 million) and leveraging at the holding company ($3.3 million) partially offset by $2.3 million in payments at the holding company and the aforementioned maturity of $15.6 million.

Total shareholders’ equity increased by $3.4 million (3.2%) from $107.8 million at December 31, 2025, and increased by $6.3 million (6.0%) from $104.9 million one year ago. The $3.4 million increase was mainly related to earnings during 2026 of $8.8 million partially offset by an increase in comprehensive loss from temporary market value adjustments to the securities portfolio of $2.0 million, cash dividends of $1.01 per share totaling approximately $2.0 million, and the repurchase of $1.3 million in shares of the holding company. On a year-over-year basis, the increase of $6.3 million in equity was predominately related to net income of $11.9 million and an increase in common stock from vesting of restricted shares of $609,000. These increases were partially offset by $1.7 million from an increase in other comprehensive loss from temporary market value adjustments to the securities portfolio, $3.1 million in dividends paid, and the holding company’s repurchase of $1.4 million in shares outstanding. As of the end of the third quarter of 2026, the shares outstanding were 2,016,453 compared to 2,038,033 at the end of the third quarter in 2025.

Net Interest Income and Net Interest Margin

Net interest income was $13.2 million for the quarter ended September 30, 2026, up $801,000, or 6.5%, from $12.4 million during the third quarter of 2025, and for the nine months ended September 30, 2026, net interest income increased $2.9 million (8.2%) to $38.3 million from $35.4 million for the nine months ended September 30, 2025. Interest income for the third quarter of 2026 increased $889,000 (4.9%) to $19.1 million from $18.3 million for the third quarter of 2025, and for the nine months ended September 30, 2026, interest income increased $2.7 million (5.1%) to $55.8 million from $53.1 million for the nine months ended September 30, 2025, mainly due to increases in rate and volume in commercial real estate credits. Interest expense for the third quarter of 2026 increased $88,000 (1.5%) to $6.0 million from $5.9 million for the third quarter of 2025, and for the nine months ended September 30, 2026, decreased $187,000 (1.1%) to $17.5 million from $17.7 million for the nine months ended September 30, 2025. Overall, interest expense has been impacted by fluctuations in noninterest-bearing deposits, the reduction in cost of interest-bearing deposits, and the movement of funds into higher yielding interest-bearing deposits.

Net interest margin is net interest income expressed as a percentage of average interest-earning assets. For the quarter ended September 30, 2026, the net interest margin on a fully taxable equivalent basis increased to 4.09% from 3.96% from the third quarter of 2025, and for the nine months ended September 30, 2026, increased to 4.06% from 3.86% for the nine months ended September 30, 2025. Much of the change in margin has been a product of the market rates improving on both sides of the balance sheet with the yield on earning assets slightly improving to 5.81% in the third quarter of 2026 from 5.75% during that same period in 2025, while year-to-date 2026 yield on interest-earning assets improved to 5.77% compared to 5.71% in 2025. Over the third quarter of 2026, the cost of funds decreased seven basis points to 1.86% from 1.93% while the year-to-date 2026 cost of funds is 1.84% down 13 basis points from the 1.97% for the first nine months of 2025.

Noninterest Income/Expense

During the three months ended September 30, 2026, noninterest income totaled $2.4 million, an increase of $224,000 (10.3%) from the three months ended September 30, 2025 and was $7.0 million, an increase of $541,000 (3.2%), for the nine months ended September 30, 2026 from the nine months ended September 30, 2025. From a quarter-over-quarter and year-over-year comparison, the increases in noninterest income of $204,000 and $541,000, respectively, were materially driven by increases in Wealth Management fees of $160,000 and $176,000, respectively.

Noninterest expense totaled $10.1 million during the three months ended September 30, 2026, a decrease of $253,000 (2.4%) from the third quarter of 2025 and there was an increase of $954,000 (3.2%) from $30.2 million for the nine months ended September 30, 2025 to $31.1 million for the same period in 2026. The largest component of the decrease in quarter-over-quarter noninterest expense was a decrease in salaries and associate benefits of $214,000 related to a decrease in expense for other associate benefits. Through the first nine months of 2026, salaries and associate benefits increased $221,000 and occupancy and equipment expense increased $332,000 from that same period in 2025. These were the most impactful increases and were primarily due to an increase in the number of associates/increasing salaries partially offset by a decrease in benefits, as well as the expense related to the expansion and maintenance of CNB’s infrastructure.

About CNB Community Bancorp Inc.

CNB Community Bancorp, Inc. (OTCQX:CNBB) is a one-bank holding company. Its subsidiary bank, County National Bank, is a nationally chartered full-service community bank that also offers investment management and trust services and has been serving southern Michigan since 1934. The corporate headquarters are in Hillsdale, Michigan. CNB provides a wide array of financial products and services through its 13 full-service offices, three loan production offices, and 18 ATMs.

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.

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