HILLSDALE, Mich.--(BUSINESS WIRE)--January 23, 2026-- 

CNB Community Bancorp, Inc. (OTCQX: CNBB), the parent company of County National Bank (the "Bank"), today announced earnings for the three and twelve months ended December 31, 2025. Earnings during the fourth quarter of 2025 totaled $3.1 million, an increase of $664,000, or 27.1%, compared to the $2.4 million earned during the three months ended December 31, 2024. The increase in net income was predominately the result of an increase in net interest income of $1.3 million and a decrease in noninterest expense associated with compensation and benefits as the expense decreased $922,000 partially offset by an increase in the provision for credit losses of $1.5 million. In part due to the buyback of shares completed in September of this year, the basic earnings per share for CNB Community Bancorp, Inc. (the "Company") increased to $1.56 during the three months ended December 31, 2025, up $0.36 from $1.20 for the fourth quarter of 2024. For the year ended December 31, 2025, the Company reported net income of $12.0 million, which was up from the $11.6 million earned during the year ended December 31, 2024, predominately resultant from the increase in net interest income minus provision for credit losses of $2.0 million, or 4.7%, somewhat offset by an increase in compensation and occupancy expense of $1.4 million, or 5.1%. Basic earnings per share increased to $5.88 during the year ended December 31, 2025, up $0.46 from $5.42 for the year ended December 31, 2024.

The annualized return on average assets ("ROA") increased to 0.93% for the three months ended December 31, 2025, up 15 basis points from 0.78% for the three months ended December 31, 2024. The annualized return on average equity ("ROE") increased to 11.66% for the current quarter, up from 9.87% for the fourth quarter of 2024. ROA declined to 0.92% for the year ended December 31, 2025, down one basis point from the 0.93% during the year ended December 31, 2024. ROE was 11.53% during the year ended December 31, 2025, down from 11.74% during the year ended December 31, 2024. Book value per share increased to $53.69 at December 31, 2025, up $5.04 from $48.65 at December 31, 2024.

"In 2025, we maintained focus on our three pillars: shareholders, communities, and associates. This strategy yielded solid results in the improvement of CNB's earnings per share in 2025," said Joseph R. Williams, President and CEO. "These positive results were tempered by net charge-offs in 2025 of approximately $3.6 million; however, the impact on CNB was lessened due to our strong core earnings."

"Furthermore, regarding the charge-offs, we have performed a complete analysis of these charge-offs and their cause, which has provided us with the path towards being a better community lender going forward," Williams added. "We have grown more significantly in the last decade than we did in the previous eight decades. With that growth has come expansion to underbanked communities, high returns on investment for our shareholders, and the addition of many jobs in those communities. However, with any such growth, there are challenges and a need to evolve. We understand that here at CNB, and we will be even more prepared to serve our communities going forward due to the lessons we have learned."

Financial Highlights

   --  Total assets increased year-over-year $39.4 million, or 3.1%, to $1.32 
      billion. 
 
   --  Net loans increased $50.5 million, or 4.9%, to $1.08 billion at 
      December 31, 2025 compared to $1.03 billion at December 31, 2024. 
 
   --  Net charge-offs for 2025 increased to $3.6 million up 661.1% from 
      $473,000 during 2024. 
 
   --  Total deposits increased approximately $20.4 million, or 1.9%, to $1.12 
      billion at December 31, 2025. 
 
   --  Book value per share increased $5.04, or 10.4%, to $53.69 at December 
      31, 2025, up from $48.65 at December 31, 2024. 
 
   --  The Company completed a tender offer to repurchase 59,190 shares in the 
      third quarter of 2025 paying its shareholders $44.09 per share. Total 
      shares outstanding are 2,038,598 as of December 31, 2025. 
 
   --  Net income increased $664,000, or 27.1%, to $3.1 million for the 
      three-month period ended December 31, 2025 with basic EPS increasing 
      $0.36, or 30.2%, to $1.56 from $1.20 in the fourth quarter of 2024. 
 
   --  Net interest income for the fourth quarter of 2025 increased $1.3 
      million to $12.7 million while for the twelve months ended December 31, 
      2025 net interest income increased $3.5 million or 7.9%. 
 
   --  Pre-tax, pre-provision income increased approximately $2.3 million to 
      $5.7 million in the fourth quarter of 2025, compared to $3.4 million in 
      the fourth quarter of 2024. For 2025, pre-tax, pre- provision income was 
      $17.3 million, compared to $15.4 million for 2024, an increase of 12.8%. 
 

Balance Sheet Review

The Company's assets totaled $1.32 billion at December 31, 2025 compared to $1.28 billion at December 31, 2024. 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. The remaining growth in assets is being funded by growth in client deposits and, to a lesser extent, borrowings.

Net loans totaled $1.08 billion at December 31, 2025, compared to $1.03 billion at December 31, 2024. The loan portfolio at December 31, 2025 included: $630.4 million in commercial real estate loans, $241.5 million in commercial loans, $186.7 in residential real estate loans, and $36.5 million in consumer loans.

Nonperforming assets at December 31, 2025 were $16.8 million, an increase of $10.0 million, or 146.8%, from the $6.8 million at December 31, 2024. Nonperforming assets as a percentage of total assets increased to 1.27% at December 31, 2025 from 0.53% at December 31, 2024. At December 31, 2025, other real estate owned consisted of two properties totaling $245,000 compared to none at year end 2024.

Nonperforming loans at December 31, 2025 were $16.6 million, an increase of $9.8 million, or 143.2%, from the $6.8 million balance at December 31, 2024. Nonperforming loans as a percentage of total loans increased to 1.51% at December 31, 2025, compared to 0.65% at December 31, 2024. 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 and charged-off as appropriate. The remaining portion of nonperforming loans remains consistent with previously reported levels.

During the fourth quarter of 2025, a provision for credit losses of $1.8 million was recorded, which is an increase of $1.5 million from a provision of $362,000 recorded during the fourth quarter of 2024. Net charge-offs totaled $2.4 million during the fourth quarter of 2025 compared to net charge-offs of $651,000 in the fourth quarter of 2024. The charge-offs from the current quarter were significantly related to a single commercial real estate credit in the process of a workout.

Net charge-offs (annualized) as a percentage of average loans was 0.95% for fourth quarter of 2025, which was an increase from the net charge-offs of 0.26% in the fourth quarter of 2024. The allowance for credit losses totaled $12.1 million at December 31, 2025 compared to $13.2 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at December 31, 2025, which is a decrease from 1.26% as of December 31, 2024. The change in the allowance is primarily resultant from the Bank charging off portions of nonperforming credits based upon updated collateral or updated financials from these credits. Therefore, there are no remaining specific reserves on the nonperforming credits. Furthermore, management continues to update qualitative factors to align with 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 $170.2 million at December 31, 2025, an increase of 33.9% from $127.1 million at December 31, 2024. 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. Furthermore, a recent opportunity to leverage capital down streamed from the holding company arose with the Bank adding over $15 million in security investments in the fourth quarter of 2025.

Noninterest bearing deposits have decreased by $2.3 million (1.1%) from $218.6 million at December 31, 2024. Interest bearing deposits increased from $878.6 million at December 31, 2024 to $901.2 million at December 31, 2025. The fluctuation and shift in the make-up of deposits results from multiple factors including the ongoing efforts by our employees, 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 $10.9 million to $83.0 million at December 31, 2025 compared to $72.1 million at December 31, 2024. The increase from year-end 2024 was the normal paydown of senior debt at the holding company and a maturity of short-term funding of the Bank's loan growth offset by $15.6 million in additional Bank level FHLB borrowings that funded a portion of the investment security leverage strategy and $9.1 million at the holding company for the downstream of capital to support said leverage strategy.

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