Highlights

  • CNB Financial shows 75.69% basic EPS growth, P/E of 10.53 and PEG of 0.00.
  • Third quarter 2026 earnings were $27.0 million, or $0.91 per diluted share.
  • Net interest margin was 3.89%, against 3.69% in the third quarter of 2025.
  • Book value per common share was $28.86 at September 30, 2026.

An undervalued growth stock pairs earnings growth with its P/E and PEG ratios, and CNB Financial (NASDAQ:CCNE) shows all three: basic earnings per share grew 75.69% over one year, the trailing twelve-month P/E ratio is 10.53 and the PEG ratio, on an expected basis, is 0.00, with shares trading at USD 35.40 on October 28, 2026, down 0.58%. Alongside those figures, the Pennsylvania financial holding company completed its acquisition of ESSA Bancorp in July 2025, exited about $76.1 million of higher cost corporate deposits in the third quarter of 2026, and reported third quarter 2026 earnings of $27.0 million, or $0.91 per diluted share, on October 21.

CNB Financial Corporation is a financial holding company headquartered in Clearfield, Pennsylvania, and incorporated in Pennsylvania, with consolidated assets of approximately $8.4 billion. Its principal subsidiary, CNB Bank, is a full-service bank offering trust and wealth management services alongside a full range of banking activities, with 79 offices in Pennsylvania, Ohio, New York and Virginia. Its divisions include ERIEBANK, FCBank, BankOnBuffalo, Ridge View Bank and ESSA Bank.

Growth: Third Quarter Earnings, Net Interest Income and Loans

Net income available to common shareholders was $27.0 million, or $0.91 per diluted share, for the three months ended September 30, 2026, against $27.2 million, or $0.91, for the three months ended June 30, 2026 and $18.9 million, or $0.69, for the three months ended September 30, 2025. For the nine months, earnings were $80.2 million, or $2.69 per diluted share, against $42.2 million, or $1.81.

Net interest income was $76.3 million against $67.1 million a year earlier, an increase of $9.2 million, or 13.67%, which the company attributed primarily to the ESSA acquisition and growth in its legacy loan portfolio. Net interest margin was 3.89% against 3.88% in the second quarter of 2026.

Loans excluding $124.1 million of syndicated loans were $6.5 billion, up $76.5 million, or 1.19%, from June 30, 2026. Total deposits were $7.0 billion, down $32.6 million, or 0.46%, for the quarter, which included the exit of corporate deposits with an average interest cost of 3.69%.

Valuation: P/E of 10.53, PEG of 0.00 and Book Value

The P/E ratio of 10.53 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 is on an expected basis. Annualized return on average equity was 12.09% for the third quarter against 10.05% a year earlier, and annualized return on average tangible common equity, a non-GAAP measure, was 14.39% against 12.03%.

Book value per common share was $28.86 against $28.75 at June 30, 2026 and $27.12 at September 30, 2025. President and Chief Executive Officer Michael Peduzzi said nine-month earnings of $2.69 per diluted share exceeded comparable periods in any prior year.

Capital Returns and Balance Sheet

Total shareholders' equity was $912.6 million at September 30, 2026. Estimated ratios were a Tier 1 leverage ratio of 10.57%, a common equity tier 1 ratio of 12.19% and a total risk-based ratio of 14.67%. The company paid cash dividends of $0.19 per common share in the third quarter against $0.18 a year earlier, a dividend payout ratio of 21%.

The company did not repurchase common stock during the nine months, and capacity under its current program was 500,000 shares or $15.0 million at September 30, 2026. Short-term borrowings were $164.0 million, and contingent liquidity resources were $6.2 billion.

Disclosed Risks and Outlook

Nonperforming assets were $56.9 million, or 0.68% of total assets, against $58.4 million, or 0.69%, at June 30, 2026 and $40.4 million, or 0.49%, at September 30, 2025. Net loan charge-offs were $2.4 million, or 0.14% annualized, against $1.4 million, or 0.09%, in the second quarter, mainly a charge-off of approximately $1.6 million on one commercial and industrial relationship.

Pre-tax net unrealized losses on securities were $81.9 million, or 8.98% of total shareholders' equity, against $54.8 million, or 6.02%, at June 30, 2026. Estimated uninsured deposits at CNB Bank were approximately $2.1 billion, or 30.02% of deposits.

The company did not issue numerical guidance. Peduzzi said the company sees a loan production pipeline and retail and treasury management deposit growth opportunities entering the fourth quarter, and that it aims to accelerate the earn-back period of the ESSA acquisition against pre-merger projections. The company also disclosed $78.0 million of deposits held for sale, tied to a planned sale of certain customer deposit accounts as part of its branch and market footprint review.