Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (August 2022)
35 slides from Cnb Financial's investor presentation, Aug 1, 2022
Slide 1: Discussion Materials: Investor Presentation August 2022
84 87 90 164 30 52 230 228 229 Discussion Materials Investor Presentation August 2022 164 30 52 164 30 52 164 30 52 Exhibit 99.1
Slide 2: Certain Important Information
Certain Important information CAUTION REGARDING FORWARD LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to CNB’s fina
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Investment Highlights
Investment highlights A Premier Franchise Diversified markets Attractive business mix Experienced Leadership Strong financial positioning Consistent Growth Story Deep rooted community bank established in 1865 #3 community bank(1) in legacy CNB Bank markets #3 ranked community bank(1) in the Buffalo
Slide 5: CNB Financial Corporation
CNB Financial Corporation 1) ROATCE is a non-GAAP measure. See appendix for reconciliation Note: Market data as of 7/26/2022. Financial data as of 6/30/2022 Source: Company filings and market capitalization data from S&P Global Market Intelligence Holding Company for CNB Bank (Clearfield, PA), servi
Slide 6: Unique Multi-state, Multi-brand Model
Unique Multi-state, multi-brand model Legacy bank of the organization founded in 1865 18 full-service offices serving Clearfield, Centre, McKean, Elk, Jefferson, Cambria, Indiana and Blair counties in PA Western and Central PA focus Opened August 2005 Comprised of two premium franchises Legacy marke
Slide 7: Management team
Joseph B. Bower Jr. President, CEO & Director CEO of CNB Financial Corporation since January 1, 2010 Has been with the Company since 1997 – previously served as Chief Financial Officer and Chief Operating Officer of CNB Bank as well as Secretary and Treasurer of CNB Financial Corporation Previously
Slide 8: Board Leadership
board leadership Peter F. Smith Independent Chairman of the Board of Directors Attorney specializing in commercial transactions, real estate, mineral law, estate planning and related litigation Independent Chairman since January 1, 2017 Joseph B. Bower Jr. See biographical information on previous pa
Slide 9: Franchise Milestones
FRANCHISE Milestones 2020 Acquisition of Bank of Akron 2013 2010 2005 1934 Reorganized through a stock offering to existing depositors 1984 1865 County National Bank of Clearfield established 2015 2016 2021 CNB Financial Corporation holding company organized ERIEBANK formed Common Equity Capital Rai
Slide 10: Legacy vs. New Markets: Loan and Deposit Growth
(1) New markets include BankOnBuffalo, ERIEBANK – Northeast Ohio, FCBank and Southwest Virginia. Legacy markets include CNB Bank and ERIEBANK - Pennsylvania (2) As of June 30, 2022. Excludes Paycheck Protection Program and Syndicated loans legacy and new markets(1) legacy vs. new – loan portfolio(2)
Slide 11: Loans to Deposits
LoanS to Deposits As of 12/31/19 (1) Loan to deposit Ratio As of 6/30/22 (1) (1) In millions
Slide 12: New Growth Markets: Loan and Deposit Detail
(1) New markets include BankOnBuffalo, ERIEBANK – Northeast Ohio, FCBank and Southwest Virginia. (2) Commercial consists of Commercial & Industrial and Commercial Mortgages New Growth markets – loan and deposit detail(1) Commercial & private banking – loans – 6/30/22(2) Commercial & private banking
Slide 13: Business Highlights
Business Highlights
Slide 14: Loan Portfolio Composition
Q2 2022 loan yield of 4.75% compared to 4.76% in Q2 2021. Loan growth driven primarily by increases in C&I loans and CRE loans primarily from our Cleveland, Buffalo and Southwest Virginia regions Excluding net PPP loans and syndicated loans, loans grew $493 million, or 15.1%, from June 30, 2021, inc
Slide 15: Additional Loan Portfolio Detail
Additional Loan portfolio Detail Well diversified and granular C&I portfolio with no single industry greater than 14% of total C&I portfolio CNB has proven C&I underwriting practices and strong loan loss history CRE portfolio is also well diversified and granular with no single segment greater than
Slide 16: Conservative Credit Culture
Conservative credit culture 6/30/22 nonaccrual loans by type Historical asset quality Historical NPAs/Assets & Ncos/Loans Note: TDRs is an abbreviation for Troubled Debt Restructurings and excludes COVID-19 related modifications. NPAs is an abbreviation for non-performing assets. NCOs is an abbrevia
Slide 17: Additional Credit Quality Detail
Additional credit quality detail Commercial Loans by Risk Rating (6/30/22) Residential, Consumer & Credit card – performing detail (6/30/22) Source: Company filings
Slide 18: Deposit Mix
Deposit mix 6/30/22 deposit mix Highlights Core deposits(1) represent over 90% of total deposits Deposit portfolio comprised entirely of customer relationships with no broker deposits as of June 30, 2022. Long-term growth in deposits driven primarily by growth in checking and savings account relatio
Slide 19: Financial Highlights
Financial Highlights
Slide 20: Q2 2022 vs 2021 Highlights
(1) Q2 2022 and 2021 exclude PPP loans and is a non-GAAP financial measures – see Appendix for reconciliation (2) In thousands Source: Company filings Q2 2022 vs 2021 highlights Total Loans (ex. PPP) ($M)(1) Total deposits ($M) Net income available to common(2) Earnings Per common Share YoY Growth =
Slide 21: Q2 2022 vs 2021 Highlights: Returns, Margin, Efficiency
(1) Net interest margin and efficiency ratio are non-GAAP financial measures – see Appendix for reconciliations; Source: Company filings Q2 2022 vs 2021 highlights Return on average equity Return on average assets Net interest margin(1) Efficiency Ratio(1)
Slide 22: Change in Net Interest Margin
Change in net interest margin QTD 2021 VS 2022 Net interest margin expansion of 45bps is primarily the result of deposit rate management coupled with organic growth and the early benefit of increases in interest rates. Strong loan growth and an asset sensitive interest rate position provide CNB with
Slide 23: Financial Trends
(1) Earnings per share includes merger costs in 2019 and merger costs, FHLB prepayment penalties and branch closure costs in 2020. Note: YTD data as of June 30, 2022 and “LTM” means for the unaudited 12 month period ended June 30, 2022 Source: Company filings Financial trends Total Assets ($M) Total
Slide 24: Earnings Power
(1) Return on average assets, return on average equity, and efficiency ratio includes merger costs in 2019 and merger costs, FHLB prepayment penalties and branch closure costs in 2020. (2) Net interest margin and efficiency ratio are non-GAAP financial measures – see Appendix for reconciliations; So
Slide 25: Wealth & Asset Management Financial Trends
Wealth & asset management financial trends Assets under management (“AUM”) ($M) & net revenue Margin (%) AUM CAGR = 10.1%
Slide 26: Allowance for Credit Losses
Allowance for CREDIT losses (ACL) The company adopted the current expected credit loss (“CECL”) methodology in Q4 2020 effective January 1, 2020 First six months of 2022 the allowance for credit losses reflects a reserve build of $0.18 per diluted common share Excluding PPP-related loans, the ACL wa
Slide 27: Capital Ratios
Capital ratios CNB Financial Corporation – Capital Ratios (1) Tangible common equity / Tangible assets (“TCE/TA”) is a non-GAAP financial measure – see Appendix for reconciliation; Note: Q2 2022 is as of June 30, 2022 Source: Company filings All capital ratios have significant excess to well-capital
Slide 28: Relative Valuation vs. Peers
CNB Financial Relative Valuation vs. Peer CNB Financial corporation vs Comparative Indices Source: Estimates per Factset Consensus Estimates; Market data as of 7/15/2022 Price / Estimated 2023 Earnings Per Share
Slide 29: Dividend History
Dividend History Historical dividend per common share Dividend yield of 2.85% as of June 30, 2022 LTM ending June 30, 2022 dividend payout ratio of 21.4% The Corporation’s long, uninterrupted history of dividends to its common shareholders reflects a key component of its Total Shareholder Return. So
Slide 30: Interest Rate Sensitivity
Interest rate sensitivity Base case assumes composition of interest sensitive assets and liabilities remain static as of June 30, 2022 Assumes rate shocks are instantaneous and sustained parallel rate shifts, or reflected uniformly across the yield curve regardless of duration to maturity or reprici
Slide 31: Securities Portfolio
securities portfolio Investment portfolio is comprised of 52% available-for-sale and 48% held-to-maturity, as of June 30, 2022, as part of a strategy to mitigate volatility in tangible common equity. Overall low credit risk profile with 80% of the portfolio comprised of government or government spon
Slide 32: New Markets Staffing Detail
(1) New markets include BankOnBuffalo, ERIEBANK – Northeast Ohio, FCBank and Southwest Virginia. new markets – staffing detail(1) 6/30/22 legacy vs new staffing 6/30/22 new – sales vs support Growth markets provide expanded opportunities for attracting skilled talent Geographical diversification str
Slide 33: Appendix: Other Relevant Information
Appendix Other relevant information
Slide 34: Non-GAAP Reconciliation
Non-gaap reconciliation This presentation contains references to financial measures that are not defined in GAAP. Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoi
Slide 35: Non-GAAP Reconciliation
Non-gaap reconciliation Year-to-Date 12/31/2018 12/31/2019 12/31/2020 12/31/2021 6/30/2022 6/30/2021 6/30/2022 Interest Income $131,870 $155,728 $167,167 $179,600 $95,995 $43,528 $49,741 LESS: Interest Expense 26,950 39,530 32,456 19,820 7,077 5,223 3,440 Net Interest Income 104,920 116,198 134,711