Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (January 2024)
26 slides from Cnb Financial's investor presentation, Jan 30, 2024
Slide 1: Discussion Materials: Investor Presentation January 2024
84 87 90 164 30 52 230 228 229 Discussion Materials Investor Presentation January 2024 164 30 52 164 30 52 164 30 52 Exhibit 99.1
Slide 2: Certain Important Information: Caution Regarding Forward Looking Statements
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: CNB Financial Corporation
CNB Financial Corporation (1) Based on 20,896,439 share count reported as of December 31, 2023, in January 23, 2024 Earnings Release and the January 24, 2024 closing stock price ($22.30) (2) Return on average tangible common equity is a non-GAAP financial measure - see Appendix for reconciliation. R
Slide 4: Investment Accretion and Returns
Investment Accretion and Returns The Great Recession 2008 COVID-19 Pandemic 2020 Return on Average tangible common equity(2) (1) Return on average tangible common equity and tangible book value per share are non-GAAP financial measures – see Appendix for reconciliations; Average equity includes both
Slide 5: Regional divisions of CNB Bank
Legacy bank of the organization founded in 1865 19 full-service offices serving Clearfield, Centre, McKean, Elk, Jefferson, Cambria, Indiana and Blair counties in PA Central and North Central PA focus Opened in August 2005 Comprised of two premium franchises Legacy market with 8 full-service offices
Slide 6: 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 7: Asset Growth and Key Capital Activities
Common Equity Capital Raise of $34.5M Acquisition of FC Banc Corp. in Bucyrus, OH Adding $360M in Assets $50M Sub-Debt Raise Acquisition of Lake National Bank Bank on Buffalo Is Formed Acquisition of Bank of Akron Preferred Equity Capital Raise of $60.4M $85M Sub- Debt Raise Ridge View Bank Is Forme
Slide 8: Wealth & Asset Management Financial Trends
Wealth & asset management financial trends AUM CAGR = 12.7% (1) Revenue CAGR = 11.7% (1) Long-term growth and increased revenue based on leveraging expansion of footprint into higher growth markets As of December 31, 2023, AUM included approximately $341.7 million in on balance sheet money market de
Slide 9: Consolidated Capital Position
Consolidated Capital Position (1) Capital as of December 31, 2023. (2) Tangible common equity / Tangible assets is a non-GAAP financial measure - see Appendix for reconciliation (3) Proforma adjustments include adjustments for pre-tax and after-tax unrealized losses on the available-for-sale and hel
Slide 10: Dividend History
Dividend History Historical dividend per common share The Corporation’s long, uninterrupted history of dividends to its common shareholders reflects a key component of its Total Shareholder Return Dividend yield of 3.10% as of December 31, 2023 Dividend payout ratio of 27% as of the twelve months en
Slide 11: Long-term growth in deposits
Long-term growth in deposits driven primarily by growth in checking and savings account relationships Approximately 17.5% CAGR from December 31, 2019, in Non-Int. Deposits Demand deposits strengthened by C&I and Treasury Management customer relationships Time deposits represented 10.1% of total depo
Slide 12: Uninsured Deposits and Liquidity
Uninsured deposits and liquidity Well diversified and granular deposit base comprised of a combination of consumer, small business, commercial and public funds with an average deposit balance per account at CNB Bank of approximately $33 thousand Substantial liquidity, which is well in excess of unin
Slide 13: Securities Portfolio
Investment portfolio comprised of 50.4% available-for-sale and 49.6% held-to-maturity as of December 31, 2023, as part of a strategy to mitigate volatility in tangible common equity Overall low credit risk profile with 80.4% of the portfolio comprised of government or government sponsored securities
Slide 14: Long-term loan growth
Long term loan growth driven primarily by increases in Commercial and Residential across our diversified markets Excluding net PPP loans and syndicated loans, loans grew $241.3 million, or 5.9%, from December 31, 2022, to December 31, 2023 CNB views commercial lending as its competitive advantage an
Slide 15: Additional Loan Portfolio Detail
Additional Loan portfolio Detail Well diversified C&I portfolio with no single industry greater than 22% of total C&I portfolio CNB has proven C&I underwriting practices and strong loan loss history Commercial Mortgage portfolio is also well diversified with no single segment greater than 23% of the
Slide 16: Commercial Office Portfolio
Commercial Office Portfolio 12/31/23 Commercial Office Loan Portfolio Commercial office loans outstanding consisted of 118 loans, totaling $114.7 million, or 2.6%, of total loans outstanding Nonaccrual commercial office loans (one customer relationship) totaled $0.5 million, or 0.4% of total office
Slide 17: Conservative Credit Culture
Conservative credit culture 12/31/23 nonaccrual loans by type Historical asset quality Historical NPAs/Assets & Ncos/Loans (1) NCOs-Bank Only excludes Holiday Financial Services Note: NPAs is an abbreviation for non-performing assets; NCOs is an abbreviation for net charge-offs (1)
Slide 18: Credit Quality
Credit quality NONPERFORMING ASSETS TO TOTAL ASSETS NET CHARGE-OFFS TO LOANS ALLOWANCE FOR CREDIT LOSSES to NONACCRUAL LOANS(1) (1) Prior to January 1, 2020, the Corporation calculated the allowance for loan losses using the probable incurred methodology.
Slide 19: Financial Trends
(1) Diluted earnings per share includes merger costs in 2019 and merger costs, FHLB prepayment penalties and branch closure costs in 2020. Financial trends Total Assets ($M) Total Gross Loans ($M) Total Deposits ($M) Diluted Earnings per share(1) CAGR = 11.2% CAGR = 12.4% CAGR = 12.7% CAGR = -0.8%
Slide 20: Earnings Power
(1) Return on average assets, return on average equity, and efficiency ratio include merger costs in 2019 and merger costs, FHLB prepayment penalties and branch closure costs in 2020. (2) Net interest margin and adjusted efficiency ratio are non-GAAP financial measures – see Appendix for reconciliat
Slide 21: Appendix
Appendix
Slide 22: 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 23: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION For the yer 31, 2019 2020 2021 2022 2023 Interest Income $155,728 $167,167 $179,600 $213,738 $293,696 LESS: 39,530 32,456 19,820 24,079 103,867 116198 134,711 159,780 189,659 189,829 Average Total Earning Assets $3,194,911 $4,092,076 $4,768,040 _$4,954,547_ $5,232,117 Net Int
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION For the year ending December 31, 2020 2021 2023 oto 2019 2022 Calculation of efficiency ratio: Non-interest expense $87,508 $107,326 $116,433 $137,622 $145,342 Non-interest income 25,975 «28,059 33,434 34,766 = 33,335 Net interest income 116,198 134,711__159,780__189,659__189
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION As of December 31, ote thousands expt pe share dete 2013 205 zeus 2017 201s 20192020202 2022 2023 ‘otal Common Equity $164911 $198,548 $201,913 $211,784 $243,910 $262,830 $304,966 $358,352 $385,062 $472,977 $513,462 ‘Goodwil and Other intangibles $2794 $27,194 $27,194 $38,730
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ___AsofDecember31, — share date 2019 2020 2021 2022 2023 Total stockholder's equi $304,966 $416,137 $442,847 $530,762 $571,247 LESS: preferred equity - 57,785 57,785 57,785 57,785 Common equity 304,966 «358,352 385,062 472,977 «513,462 LESS: goodwill and other it 38,890 44,31