CNB COMMUNITY BANCORP, INC. REPORTS SECOND QUARTER 2023 RESULTS

HILLSDALE, Mich., July 14, 2023 /PRNewswire/ -- CNB Community Bancorp, Inc. CNBB, the parent company of County National Bank, today announced earnings for the three and six months ended June 30, 2023. Earnings during the second quarter of 2023 totaled $2.5 million, a decrease of $385,000 or 13.3% compared to the $2.9 million earned during the three months ended June 30, 2022 predominately as a result of an increase in noninterest expense associated with employee and fixed asset costs. Basic earnings per share for CNB Community Bancorp, Inc. (the "Company") decreased to $1.18 during the three months ended June 30, 2023, down $0.18 from $1.36 for the second quarter of 2022. For the six months ended June 30, 2023, the Company reported net income of $5.4 million, an increase of $302,000, or 5.9%, from the $5.1 million earned during the six months ended June 30, 2022 primarily as a result of the increase in net interest margin. Basic earnings per share increased to $2.52 during the six months ended June 30, 2023, up $0.13 from $2.39 for the first six months of 2022.

The annualized return on average assets (ROA) decreased to 0.87% for the three months ended June 30, 2023, down 15 basis points from 1.02% for the three months ended June 30, 2022. The annualized return on average equity (ROE) decreased to 11.18% for the current quarter, down from 14.37% for the second quarter of 2022. ROA increased to 0.93% during the six months ended June 30, 2023, up 4 basis points from the 0.89% during the first six months of 2022. ROE was 12.17% during the first half of 2023, down from 12.73% during the six-month period ended June 30, 2022. Book value per share increased to $42.70 at June 30, 2023, up $4.18 from $38.52 at June 30, 2022.

Joseph R. Williams, President and Chief Executive Officer of CNB Community Bancorp, Inc. and County National Bank, remarked, "Recent economic reports have shown that the significant increases in interest rates over the last fifteen months are slowing growth across the country.  The impact of these changes, certainly, are potential headwinds for the country and our communities over the rest of 2023.  However, CNB's loan growth and our ability to maintain a strong client deposit base exemplify the strength of our bank even in turbulent times.  We continue our focus of working with our clients, both new and existing, while investing in every community we serve."

Financial Highlights

• Total assets increased $60.6 million, or 5.4%, to $1.17 billion from June 30, 2022 and increased slightly by $7.1 million, or 0.6% from December 31, 2022.
• Net loans increased $61.8 million, or 7.3%, to $906.7 million at June 30, 2023 compared to $844.8 million at June 30, 2022 and increased $26.6 million, or 3.0%, from December 31, 2022.
• Total deposits increased $51.6 million, or 5.1%, to $1.07 billion at June 30, 2023 from $1.01 billion at June 30, 2022 and increased $3.6 million, or 0.3% from December 31, 2022.
• Book value per share increased $4.18, or 10.9%, to $42.70 at June 30, 2023, up from $38.52 at June 30, 2022 and up $1.93 from $40.77 at December 31, 2022.
• Total equity increased $9.5 million to $92.3 million from June 30, 2022.
• Net income decreased $385,000, 13.3%, to $2.5 million in the second quarter of 2023 and basic EPS decreased $0.18, or 13.4%, to $1.18 from $1.36 in the second quarter of 2022.
• Net interest income for the second quarter of 2023 increased $350,000 to $10.0 million from the
• second quarter of 2022.
• Pre-tax, pre-provision income decreased to $3.4 million in the second quarter of 2023 from $3.9 in the second quarter of 2022 or 12.8%.

About CNB Community Bancorp Inc.

CNB Community Bancorp, Inc. CNBB is a one-bank holding company formed in 2005. Its subsidiary bank, County National Bank, is a nationally chartered full-service bank, which has served its local communities since its founding in 1934. CNB Community Bancorp, Inc. is headquartered in Hillsdale, Michigan and through its subsidiary bank offers banking products along with investment management and trust services to communities located throughout South Central Michigan.

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.

SOURCE CNB Community Bancorp, Inc.