CNB Financial Corporation (CCNE) Cash Flow Statement

Quarterly net income of $27.0M to $28.3M in 2026 Q1 through Q3 is well above the $6.4M to $6.7M paid in dividends, implying roughly three-quarters of recent earnings are retained. The sharp swing in 2025 Q3 to $7.0M of net income, however, shows how dependent capital accumulation is on provision timing, so investors should monitor whether the retention rate holds through a normalized credit cycle.

Purchases exceeded sales and maturities in most quarters, with 2026 Q1 showing net deployment of roughly $115M into securities, while 2025 Q3 saw $319.7M of sales against $75.0M of purchases. This pattern suggests management is rotating the portfolio in response to rate conditions rather than simply reinvesting maturities. Investors should monitor whether the reinvestment yield exceeds the runoff yield, since that spread determines whether the portfolio is accretive to earnings.

Operating cash flow fell to $5.2M in 2026 Q3, barely above the $6.7M dividend outlay, indicating that coverage in that quarter was thin. Buybacks have been negligible, with figures of only a few hundred thousand dollars, so capital return is effectively dividend-only. The step-up in dividend cash outflow warrants monitoring alongside any further deceleration in operating cash generation.

The 2025 Q4 provision release coincided with a period of relatively modest operating cash flow, while the high 2025 Q3 provision accompanied a weak net income quarter, which suggests cash flow timing is tied to CECL forecast revisions rather than steady credit deterioration. The OCF to net income ratio fell as low as 0.18 in 2026 Q3, which may indicate that reported earnings are running ahead of cash conversion. Analysts should investigate whether this gap reverses as provisions normalize.