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, 2025. Earnings during the third quarter of 2025 totaled $3.2 million, a decrease of $287,000 or 8.3% compared to the $3.5 million earned during the three months ended September 30, 2024. The decrease in net income was predominately the result of an increase in noninterest expense associated with compensation and benefits as well as occupancy and equipment; partially offset by an increase in net interest income as well as noninterest income driven by increases in Wealth Management and in Gain on sale of loans. Basic earnings per share for CNB Community Bancorp, Inc. (the “Company”) decreased to $1.55 during the three months ended September 30, 2025, down $0.04 from $1.59 for the third quarter of 2024. For the nine months ended September 30, 2025, the Company reported net income of $8.8 million, which was down from the $9.1 million earned during the nine months ended September 30, 2024, predominately resultant from the same factors as those that impacted the third quarter variance in earnings. Basic earnings per share increased to $4.32 during the nine months ended September 30, 2025, up $0.12 from $4.20 for the first nine months of 2024.

The annualized return on average assets (“ROA”) decreased to 0.96% for the three months ended September 30, 2025, down 14 basis point from 1.10% for the three months ended September 30, 2024. The annualized return on average equity (“ROE”) decreased to 11.89% for the current quarter, down from 12.99% for the third quarter of 2024. ROA declined to 0.91% for the nine months ended September 30, 2025, down seven basis points from the 0.98% during the first nine months of 2024. ROE was 11.49% during the first nine months of 2025, down from 11.82% during the nine-month period ended September 30, 2024. Book value per share increased to $52.66 at September 30, 2025, up $4.50 from $48.16 at September 30, 2024.

Joseph R. Williams, President and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, commented, “We just completed another tender offer for our shares as we continue to see value in buying CNB at the current market valuation. We purchased just over 56,000 shares at $44.09 while our tangible book value as of the end of the 3^rd quarter of this year was $51.36 per share. Furthermore, we were able to add some debt at the holding company that allowed us to downstream capital to our Bank for the purpose of leveraging more of our balance sheet with the purchase of some prudent investments, which we expect will contribute to CNB’s earnings in 2025 and beyond.”

“The actions we have taken are due, in part, to our continued success in growing our brand in all of our new and existing communities. Also, the Board of Directors, Advisory Boards, and Associates continue to support CNB through their guidance, work, and presence in all of our communities. I believe in these efforts and look forward to ending this year strongly while preparing for the exciting challenges of 2026 .”

Financial Highlights

• Total assets increased $59.9 million from September 30, 2024, or 4.8%, to $1.32 billion, and by $36.1 million, or 2.8% from December 31, 2024.
• Net loans increased $31.8 million, or 3.1%, to $1.07 billion at September 30, 2025, compared to
• $1.04 billion at September 30, 2024, and increased $35.7 million, or 3.5%, from December 31, 2024.
• Total deposits increased $73.2 million, or 7.0%, to $1.12 billion at September 30, 2025, from $1.05 billion at September 30, 2024, and increased $21.3 million, or 1.9%, from December 31, 2024.
• Book value per share increased $4.50, or 9.3%, to $52.66 at September 30, 2025, up from $48.16 at September 30, 2024 and up $4.01 from $48.65 at December 31, 2024.
• Total equity increased $7.0 million to $104.9 million from September 30, 2024.
• Net income decreased $287,000, or 8.3%, to $3.2 million in the third quarter of 2025, and basic EPS decreased $0.04, or 2.6%, to $1.55 from $1.59 in the third quarter of 2024.
• Net interest income for the third quarter of 2025 increased $665,000 to $12.4 million from the third quarter of 2024.
• Pre-tax, pre-provision net income decreased to $4.2 million in the third quarter of 2025 from $4.6 in the third quarter of 2024 or 9.4%.

Balance Sheet Review

The Company’s assets totaled $1.32 billion at September 30, 2025 compared to $1.28 billion at December 31, 2024, and $1.26 billion at September 30, 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 largely being funded by growth in client deposits.

Net loans totaled $1.07 billion at September 30, 2025, compared to $1.03 billion at December 31, 2024, and $1.04 billion at September 30, 2024. The loan portfolio at September 30, 2025 included: $617 million in commercial real estate loans, $240.2 million in commercial loans, $184.4 in residential real estate loans, and $39.1 million in consumer loans.

Nonperforming assets at September 30, 2025 were $18.8 million compared to $6.8 million at December 31, 2024 and $7.1 million at September 30, 2024. Nonperforming assets as a percentage of total assets were 1.43% at September 30, 2025, 0.53% at December 31, 2024, and 0.56% at September 30, 2024.

Nonperforming loans at September 30, 2025 were $18.8 million, an increase of $12.0 million, or 176.3%, from the $6.8 million balance at December 31, 2024, and an increase of $11.7 million, or 165.3% from the $7.1 million at September 30, 2024. Nonperforming loans as a percentage of total loans increased to 1.74% at September 30, 2025, compared to 0.65% at December 31, 2024, and from 0.67% at September 30, 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 with no charge-offs. The remaining portion of nonperforming loans remains consistent with previously reported levels.

During the third quarter of 2025, a provision for credit losses of $245,000 was recorded, which is a decrease of $80,000 from a provision of $325,000 recorded during the third quarter of 2024. Net charge-offs totaled $418,000 during the third quarter of 2025 compared to net recoveries of $18,000 in the third quarter of 2024. The charge-offs from the current quarter pertained mainly to a commercial credit and a commercial real estate credit with both in the process of a workout towards fulfillment of the contracts with the Bank.

Net charge-offs (annualized) as a percentage of average loans was 0.16% for third quarter of 2025, which was an increase from the net charge-offs of 0.00% in the third quarter of 2024. The allowance for credit losses totaled $12.7 million at September 30, 2025 compared to $13.2 million at December 31, 2024, and $13.7 million at September 30, 2024. The allowance for credit losses as a percentage of total loans was 1.17% at September 30, 2025, which is a decrease from 1.26% as of December 31, 2024, and 1.30% at September 30, 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. 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 $156.0 million at September 30, 2025, an increase of 22.7% from $127.1 million at December 31, 2024, and 10.4% from $141.3 million at September 30, 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 additional capital in the balance sheet arose with the Bank adding over $40 million in security investments in the third quarter of 2025.

Noninterest bearing deposits have decreased by $3.7 million (1.7%) from $218.6 million at December 31, 2024, but increased $6.3 million (3.0%) from $208.6 million one year ago. Interest bearing deposits increased from $878.6 million at December 31, 2024 and from $836.7 million at September 30, 2024 to $903.5 million at September 30, 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 $8.5 million to $80.6 million at September 30, 2025 compared to $72.1 million at December 31, 2024 but decreased by $20.5 million from $101.1 million at September 30, 2024. The increase from year-end 2024 was due to 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 borrowings and $7.1 million at the holding company. The year-over-year decrease was a combination of the short-term funding of loan growth ($12.5 million) maturing in 2025 and short-term funding related to a hedge position ($21.5 million) maturing in 2024, partially offset by the aforementioned new senior debt at the holding company taken out in the third quarter of 2025 and the Bank’s FHLB borrowings that funded a portion of the investment security leverage strategy.

Total shareholders’ equity increased by $5.2 million (5.3%) from $99.6 million at December 31, 2024, and increased by $7.0 million (7.2%) from $97.8 million one year ago. The $5.2 million increase was mainly related to earnings during 2025 of $8.8 million as well as an increase in comprehensive income from temporary market value adjustments to the securities portfolio of $875,000, partially offset by cash dividends of $0.93 per share totaling approximately $1.9 million and the repurchase of $2.6 million in shares of the holding company. On a year-over-year basis, the increase of $7.0 million in equity was predominately related to net income of $11.3 million, an increase in common stock from vesting of restricted shares of $609,000, as well as $671,000 from an increase in OCI from temporary market value adjustments to the securities portfolio. These increases were partially offset by $3.0 million in dividends paid and the holding company’s repurchase of $2.6 million in shares outstanding during the third quarter of 2025. As of the end of the third quarter of 2025, the shares outstanding were 2,038,033 compared to 2,074,867 at the end of the third quarter in 2024.

Net Interest Income and Net Interest Margin

Net interest income was $12.4 million for the quarter ended September 30, 2025, up $665,000, or 5.7%, from $11.7 million during the third quarter of 2024, and for the nine months ended September 30, 2025, net interest income increased $2.2 million (6.7%) to $35.4 million from $33.2 million for the nine months ended September 30, 2024. Interest income for the third quarter of 2025 increased $1.0 million (5.8%) to $18.3 million from $17.3 million for the third quarter of 2024, and for the nine months ended September 30, 2025, interest income increased $3.6 million (7.2%) to $53.1 million from $49.5 million for the nine months ended September 30, 2024, mainly due to increases in rate and volume in commercial real estate credits. Interest expense for the third quarter of 2025 increased $343,000 (6.2%) to $5.9 million from $5.6 million for the third quarter of 2024, and for the nine months ended September 30, 2025, increased $1.3 million (9.0%) to $17.7 million from $16.4 million for the nine months ended September 30, 2024, which was predominately resultant from a combination of growth in interest checking and money market deposits slightly offset by an approximate 6.7% decrease in cost of 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, 2025, the net interest margin on a fully taxable equivalent basis increased to 3.96% from 3.93% from the third quarter of 2024, and for the nine months ended September 30, 2025, increased to 3.86% from 3.74% for the nine months ended September 30, 2024. 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 5.75% in the third quarter of 2025 from 5.74% during that same period in 2024, while year-to-date 2025 interest-earning assets improved to 5.71% compared to 5.54% in 2024. Over the third quarter of 2025, the cost of funds decreased 11 basis points to 1.93% from 2.04% while the year-to-date 2025 cost of funds is 1.97% down four basis points from the 2.01% for the first half of 2024.

Noninterest Income/Expense

During the three months ended September 30, 2025, noninterest income totaled $2.2 million, an increase of $97,000 (4.6%) from the three months ended September 30, 2024 and was $6.4 million, an increase of $378,000 (6.2%), for the nine months ended September 30, 2025 from the nine months ended September 30, 2024. From a quarter-over-quarter and year-over-year comparison, the increases in noninterest income of $97,000 and $378,000, respectively, were predominately driven by increases in Wealth Management fees of $78,000 and $475,000, respectively.

Noninterest expense totaled $10.3 million during the three months ended September 30, 2025, an increase of $1.2 million (13.1%) from the third quarter of 2024 and there was an increase of $3.0 million (10.8%) from $27.2 million for the nine months ended September 30, 2024 to $30.2 million for the same period in 2025. The largest components of the increase in quarter-over-quarter noninterest expense were increases in salaries and employee benefits of $756,000 related to an increase in the number of employees along with additional benefits expense from insurance and incentives, as well as an occupancy and equipment expense increase of $230,000 related to additional sites being placed into operations and the refurbishment of existing sites. Through the first nine months of 2025, salaries and employee benefits increased $1.9 million and occupancy and equipment expense increased $555,000 from that same period in 2024. These were the most impactful increases and were primarily due to the aforementioned increases in the number of employees, increasing salaries and benefits, and expansion and maintenance of CNB’s infrastructure.