Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (May 2016)
28 slides from Cnb Financial's investor presentation, May 4, 2016
Slide 1: CNB Financial Corporation Investor Presentation May 2016
CNB Financial Corporation Investor Presentation May 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements
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 the financial condition, liquidity, results of operations,
Slide 3: CNB Financial Overview
CNB Financial Overview Network of 38 branches through principal subsidiary, CNB Bank: 21 CNB Bank full-service branches in North Central Pennsylvania 8 full-service branches through ERIEBANK, a division of CNB Bank, headquartered in Erie, PA 9 full-service branches through FCBank, a division of CNB
Slide 4: CNB's Experienced Management Team
CNB’s Experienced Management Team Years at Years in Executive Title CCNE Industry Joseph B. Bower Jr. President & Chief Executive Officer 19 23 Richard L. Greslick Jr. SEVP / Chief Operating Officer & Secretary 18 18 Joseph E. Dell Jr. EVP / Chief Lending Officer 3 32 Mark D. Breakey SEVP / Chief Cr
Slide 5: CNB's Vision and Five Pillars of Success
CNB’s Vision and Five Pillars of Success Look for a way to say yes to your customers, co-workers and community, every time Leadership in Local Communities – a differentiating factor is CNB’s level of investment and leadership in local communities; CNB Bank, ERIEBANK, and FCBank develop key community
Slide 6: History of CNB Financial
History of CNB Financial 1865 1934 1984 2005 2006 20082009 2010 2013 2015 1865: County National Bank of Clearfield established 1934: Reorganizes through a stock offering to existing depositors 1984: Forms CNB Financial Corporation holding company 2005: ERIEBANK is formed 2005: Purchases assets of Ho
Slide 7: CNB's Growth Model
CNB’s Growth Model CNB’s strong growth, both organic and by M&A, has been a result of its business model which involves identifying the right market in which to operate based on market demographics that fit CNB’s lending expertise (small and mid sized commercial and industrial lending) and then find
Slide 8: Strong and Profitable Growth Since 2010
Strong and Profitable Growth Since 2010 Source: SNL Financial at of December 31 for each respective year. Peers consisting of banks headquartered in the Northeast, as well as OH, WV, IN, and KY (states bordering CNB footprint), excluding metro markets, with total assets between $1 billion and $5 bil
Slide 9: Greater Concentration in More Metropolitan Markets
While still growing in its home market of Clearfield, CNB has successfully expanding organically into Erie and more recently into Columbus through its acquisition of FCBank and into Cleveland with its pending acquisition of Lake National Bank Loans in the Clearfield market represent less than 50% of
Slide 10: Strong Organic Loan and Deposit Growth
Strong Organic Loan and Deposit Growth Strong organic loan and deposit growth through the financial crisis and recession Fundamental focus on originating loans in-market and funding with local, low-cost core deposits while maintaining asset quality The Bank strives to be more customer-driven than it
Slide 11: Ever Changing Competitive Landscape
Ever Changing Competitive Landscape Source: SNL Financial based on deposit market share at June 30, 2000 and 2015. Aggregate deposit market share for those counties in Pennsylvania in which CNB had s presence. 2000 2015 Parent Company Name Parent City Parent State Total Branches 2000 Total Deposits
Slide 12: Market Overview
Market Overview Erie is 4th largest city in the Pennsylvania. Erie's vibrant business community is growing increasingly more diverse. The region's strong manufacturing history has helped encourage recent growth in smaller-scale steel and plastics manufacturers, as well as healthcare, insurance, tour
Slide 13: Market Overview
Market Overview MSA Number of Branches Deposits in Market ($000) Percent of Franchise (%) Number of Businesses Total Population 2016 (Actual) Population Change 2010-2016 (%) Projected Population Change 2016-2021 (%) Median HH Income 2016 ($) Projected HH Income Change 2016-2021 (%) Johnstown, PA 1 5
Slide 14: ERIEBANK at March 31, 2016
At March 31, 2016: Eight branches One loan production office in Ashtabula, Ohio $506 million in loans and loan growth of $73.2 million, or 16.9%, since March 31, 2015 $609 million in deposits and deposit growth of $8.3 million, or 1.4%, since March 31, 2015 ERIEBANK, a division of CNB Bank, was crea
Slide 15: Successful Expansion into Ohio
The acquisition of FC Banc Corp. in 2013 expanded CNB’s geographic footprint into Central Ohio with meaningful size and scale $410 million in total assets; $313 million in loans; and $368 million in deposits as of March 31, 2016 Loan growth of $70.6 million, or 29.1%, since March 31, 2015 Opportunit
Slide 16: Lake National Bank – Announced December 2015
Lake National Bank – Announced December 2015 Lake National Bank is a healthy, well performing institution in major metropolitan market with $153 million in assets at December 31, 2015; Entering greater Cleveland area with small acquisition allows for continued organic growth without needing new acqu
Slide 17: Building Infrastructure to Support Future Growth
Building Infrastructure to Support Future Growth CNB has experienced significant growth, almost doubling its size since December 2009, assets have grown to $2.3 billion at March 31, 2016 from $1.2 billion at December 31, 2009 The rapid increase in assets through the growth in number of customers led
Slide 18: Customer Efficient, Cost Effective Retail Delivery
Customer Efficient, Cost Effective Retail Delivery CNB’s branch network has evolved to less traditional, more customer friendly branches providing customers with a one-on-one experience Branches are staffed with employees that can handle all of a customer’s needs from account openings to customer se
Slide 19: Financial Information
Financial Information CNB CORPORA CORPORATION
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio $791 million 6.43% yield $1.6 billion 4.74% yield
Slide 21: Attractive Deposit Mix
Attractive Deposit Mix $1.2 billion 1.42% cost of deposits $1.9 billion 0.50% cost of deposits
Slide 22: Available-for-Sale Investment Portfolio
Total Portfolio $539 million Tax Equivalent Book Yield 2.67% Modified Duration 3.7 years Price Change +300 bps (10.9%) Available-for-Sale Investment Portfolio March 31, 2016 Total Portfolio $686 million Tax Equivalent Book Yield 2.70% Modified Duration 4.1 years Price Change +300 bps (12.3%) Decembe
Slide 23: Deposit Market Share
Deposit Market Share Source: SNL Financial. Deposit market share as of June 30, 2015. Pro forma to include Lake National Bank CNB Growth Market Growth Market Rank # of Branches CNB Deposits ($000) CNB Deposit Market Share (%) Year over Year (%) 5-Year CAGR (%) Total Deposits in Market ($000) Year ov
Slide 24: Strong Profitability
Strong Profitability * Note 2013 full year net income includes one-time merger costs of $2.4 million (pre-tax) related to the acquisition of FC Banc Corp and 2015 net income includes one-time merger costs of $308 thousand (pre-tax) related to the acquisition of Lake National Bank.
Slide 25: Stable Net Interest Margin
CNB Stable Net Interest Margin 6.00 5.23 484 5.00 442 443 as 432 4.25 “0 + _, 3.82 3.00 3.85 3.59 3.49 347 3.73 3.67 2.00 178 1.00 144 108 0.79 071 0.71 0.69 0.00 2010Y 2o011Y 2012¥ 2013Y 2014Y 2015Y 102016 Net t= Cost of Interest Bearing Liabiliti FINANCIAL CORPORATION
Slide 26: Superior Asset Quality
Superior Asset Quality Source: SNL Financial. NPAs excluded restructured loans. Texas ratio defined as NPA & Loans 90+/ Tangible Common Equity* + Allowance for Loan Losses. * Please see the Appendix for a reconciliation of non-GAAP financial information
Slide 27: Strong Capital Levels
Strong Capital Levels * Please see the Appendix for a reconciliation of non-GAAP financial information.
Slide 28: Non-GAAP Financial Reconciliation
Non-GAAP Financial Reconciliation Tangible common equity, tangible assets and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and the core deposit intangible from the calculation of