Pennsylvania banker CNB Financial Corp (CCNE) will be selling a new non cumulative preferred issue.
CNB Financial is a fairly small banking company with just $4.4 billion in assets.
The issue will be fixed rate and have the typical optional redemption in 2025.
The permanent NASDAQ ticker will be CCNEP after it trades on the OTC grey market for a week ot two.
The preliminary prospectus is here.
The company has a new investor presentation here.
9 thoughts on “Community Banker CNB Financial to Sell Preferred”
CNB Financial Corporation (“CNB” or the “Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, announced today the pricing of its underwritten public offering (the “Offering”) of 2,100,000 depositary shares, each of which represents a 1/40th interest in a share of its 7.125% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock,
David–thanks–I just saw they finally priced it.
Tim ..this bank has history…buy out other banks…the presentation is for real??? ….
Tim, thanks for sharing the listing for this new preferred stock. I may have been interested since it is based in my home state of Pennsylvania. Glad you shared the Investor Presentation. Looking at Page 26 of the presentation, the bank has $181M in loans to the Hospitality sector and 89% of those have some type of Deferred Payments and for almost all of those both P&I is being deferred. This is a total of $161M in loans and the total market cap for the company is only $306M as of this afternoon. Based on this information, I’m going to pass on the issue. I’m not a banker, but the amount of loans being deferred looks pretty high to me.
@kaptain lou Good catch! I would have been nodding off by page 25!
Ron Ramsey – just to let you know, I did not read the whole document 🙂
I’ve just been reading financial statements for 25+ years and know where to look to find the “good stuff” or in this case, the “bad stuff.” I own a few shares of a smaller bank located in my home state of PA and always look for this section where they talk about loans that are being “Deferred” or are impaired. Clearly this bank has some real exposure to the Hospitality sector, so I’m going to avoid for now. Unfortunate for me, as I was looking to get into a newer preferred that had a decent coupon rate – but this is not the right security for me until some of these loans are cleaned up.
kaptain lou–I think these community banks are going to take a bath on local small business loans–but until we get by the helicopter money no one knows what the real damage will be–tons of zombie businesses–won’t make it, but won’t go out of business yet. These small banks are good for a flip–no a long term hold, but they may present some opportunity in the future.
Tim, I bought several of these and they have blown up into $26 and $27 range. Im only about 15% financials, but it may be lower yet here when I pull the plug.
Tim – I agree with you, they may be good for a short-term flip and it will take some time to see the final results on some of the loans. It will likely take a few months to see the total damage. Thanks for all you do on this website.