# CNB Community Bancorp Q3 Earnings Fall 15.5% on Higher Credit Loss Provision

- URL: https://stocks.freetheai.org/news/cnb-community-bancorp-q3-earnings-fall-15-5-on-higher-credit-loss-provision-520aed
- Published: 2026-10-16T11:00:00Z
- Category: earnings; sentiment: mixed; impact: medium
- Symbols: [OTC:CNBB](https://stocks.freetheai.org/symbols/OTC-CNBB)
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CNB Community Bancorp, Inc. (OTC:CNBB), the parent company of County National Bank, reported third-quarter 2026 net income of $2.7 million, down 15.5% from $3.2 million in the same period last year. Basic earnings per share fell to $1.35 from $1.55. For the first nine months of 2026, net income was unchanged at $8.8 million, while basic earnings per share rose to $4.45 from $4.32, supported by share repurchases.

The quarterly profit decline was primarily driven by a provision for credit losses of $2.2 million, up from $245,000 in the third quarter of 2025. The higher provision followed two large commercial real estate loans totaling approximately $10 million moving into nonperforming status, leading to $1.9 million in net charge-offs during the quarter. Despite the credit loss impact, core operating revenue expanded, with net interest income rising to $13.2 million and the net interest margin holding at 4.09%.

Moving forward, investors will be watching the bank's progress in working through its troubled commercial real estate positions and whether nonperforming assets, which increased to 2.05% of total assets, remain under control. Market participants will also monitor deposit competition, loan growth, and asset repricing entering the fourth quarter.

## Key points

- Q3 2026 net income dropped 15.5% year-over-year to $2.7 million, with basic EPS falling from $1.55 to $1.35.
- Credit loss provisions rose to $2.2 million in Q3 2026 due to workout process adjustments on commercial real estate credits.
- Net interest income for the quarter increased by $801,000 year-over-year to $13.2 million, supported by a 4.09% net interest margin.
- Nonperforming assets rose to $27.8 million, or 2.05% of total assets, up from $18.9 million a year earlier.
- Tangible book value per share increased 7.0% year-over-year to $54.94 as of September 30, 2026.

## Questions and answers

### Why did CNB Community Bancorp's Q3 2026 net income decline?

Net income fell primarily due to a $2.2 million provision for credit losses, driven by valuation adjustments and workouts on two commercial real estate loans.

### What was CNB Community Bancorp's EPS for Q3 2026?

Basic earnings per share for the third quarter of 2026 were $1.35, down from $1.55 in the third quarter of 2025.

### How did CNB Community Bancorp's loans and book value perform?

Net loans grew 5.1% year-over-year to $1.12 billion, while tangible book value per share rose 7.0% to $54.94 as of September 30, 2026.