Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (June 2020)
27 slides from Cnb Financial's investor presentation, Jun 9, 2020
Slide 1: Annual Shareholder Meeting Investor Presentation
Exhibit 99.1 Annual Shareholder Meeting April 21, 2020 CNB Financial Corporation Investor Presentation June 11, 2020 1Exhibit 99.1 Annual Shareholder Meeting April 21, 2020 CNB Financial Corporation Investor Presentation June 11, 2020 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 CNB’s financial condition, liquidity, results of operation
Slide 3: Overview
Overview § Four local community banking brands serving diverse markets in three states § Strong and successful track record of organic growth – Loan and deposit growth of 12.8% and 16.7%, respectively, for Q1 2020 versus Q1 2019, all organic – Three year, ending Q1 2020, loan and deposit CAGR of 14.
Slide 4: COVID-19 Response
COVID-19 Response 4COVID-19 Response 4
Slide 5: Customer Experience
Customer Experience § Established COVID-19 Preparedness Committee comprised of Senior Management, focused on safety of our customers and employees § Re-established loan pricing floors at adjustable levels as part of standard pricing decisions § Implemented proactive communication protocols via CNB w
Slide 6: Employee Experience
Employee Experience § Employed a split team approach § Leveraged IT network capabilities to support work from home § All Commercial and Private Banking Sales Teams worked remotely § Diversified Customer Service Center agents into 3 locations, in 3 states – As call volumes nearly doubled, supplemente
Slide 7: Customer Initiatives
Customer Initiatives 7Customer Initiatives 7
Slide 8: SBA Paycheck Protection Program (PPP) by Region
SBA Paycheck Protection Program (PPP) by Region As of April 30, 2020 $ in Thousands CNB Bank ERIEBANK FCBank BankOnBuffalo Total SBA approved loans $ 58,808 $ 77,829 $ 36,509 $ 42,341 $ 215,487 # of SBA approved loans 462 677 172 258 1,569 Average size per loan $ 127 $ 115 $ 212 $ 164 $ 137 Processi
Slide 9: SBA Paycheck Protection Program (PPP) by Industry
SBA Paycheck Protection Program (PPP) by Industry As of April 30, 2020 Total Average # of Loan Loan Loans $ in Thousands Manufacturing $ 46,735 $ 225 208 Healthcare 34,155 208 164 Construction 27,908 166 168 Professional and Business Services 22,522 129 175 Retail 13,145 95 139 Other Services 10,560
Slide 10: Loan Modifications by Region
Loan Modifications As of April 30, 2020 By Region $ in Thousands CNB Bank ERIEBANK FCBank BankOnBuffalo Total Deferred loans $ 129,890 $ 145,558 $ 44,614 $ 102,302 $ 422,364 # of deferred loans 513 558 80 67 1,218 By Loan Category Commercial, Industrial and Commercial Residential Agricultural Mortga
Slide 11: Loan Modifications by Industry
Loan Modifications by Industry As of April 30, 2020 Loans with Deferred Payments Portfolio # of Interest % of $ in Thousands Q1 2020 Loans Only P&I Total Portfolio Commercial Real Estate (Office/Apt/Mixed, etc) $ 667,162 131 $ 57,610 $ 42,918 $ 100,528 15% Hotels / Motels 179,176 37 140 85,196 85,33
Slide 12: Loan Portfolio Profile
Loan Portfolio Profile 12Loan Portfolio Profile 12
Slide 13: Loan Portfolio Diversification
Loan Portfolio Diversification Commercial, Industrial and Agricultural Loan Composition at 3/31/2020 Manufacturing: Consumer, 13% Credit cards and Healthcare: Overdrafts: 11% 4% Public Other: Administration: 60% 10% Retail: Commercial, Residential 6% industrial real estate: and 28% agricultural: Com
Slide 14: Most Economically Sensitive Industries
Most Economically Sensitive Industries Total Gross Loans as of 3/31/2020 Hospitality: Energy: § The Corporation is not significantly 6% 1% Restaurants: 1% dependent on these economically Healthcare: sensitive industries 5% § For these industries, the Corporation prioritizes – Projects, properties or
Slide 15: Hospitality
Hospitality Independent: 1% Hospitality overview: § Franchise hotels comprise 99% of total hotel portfolio § Resort or destination related hospitality sites comprise approximately 1% of total hotel portfolio § Prioritize tier 1 preferred franchises: $180M Hilton and Marriott; secondarily tier 2 fran
Slide 16: Healthcare
Healthcare Healthcare overview: § Total Healthcare portfolio comprises approximately 5% of total loan portfolio § Well diversified portfolio § Full recourse from owners/partners at origination $150M § Hard cash/land in the project or purchase § Delinquency and non-performing loans include one $9.7 m
Slide 17: Financial Performance
Financial Performance 17Financial Performance 17
Slide 18: Financial Highlights
Financial Highlights First Quarter Fourth Quarter First Quarter $ in Thousands except per share 2020 2019 2019 Net Income $ 8,813 $ 10,484 $ 9,473 Income before provision and taxes 13,616 13,594 12,736 Diluted earnings per share 0.57 0.69 0.62 Dividends declared per share 0.17 0.17 0.17 Book value p
Slide 19: Operating Efficiency Initiatives
Operating Efficiency Initiatives The Corporation implemented certain revenue and operational efficiency improvement initiatives during the first quarter of 2020, including: § Re‐established loan pricing floors ranging from 4% to 5%, based on loan risk rating § Implemented temporary hiring freeze; on
Slide 20: Historical Credit Quality
Historical Credit Quality § Credit metrics reflect conservative lending culture § Net charge-offs at 10-year low Historical Credit Quality 1.60 0.6 1.40 0.5 1.20 0.4 1.00 0.80 0.3 0.60 0.2 0.40 0.1 0.20 0.00 0 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y Q1 2020 NPA/TA Net Charge Offs - Con
Slide 21: Capital Ratios
Capital Ratios CET1 Ratio TCE/TA 8.00 12.00 7.00 10.00 6.00 8.00 5.00 4.00 6.00 3.00 4.00 2.00 2.00 1.00 0.00 0.00 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y Q1 2020 * 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y Q1 2020 Leverage Ratio Total Risk-Based Ratio 9.00 16.00 8.00 14.00 7.00 12.00 6.00 10.00 5.00 8.00 4.0
Slide 22: Capital Management
Capital Management As of March 31, 2020 - Consolidated Well Consolidated Ratio Capitalized* Capital Excess $ in Thousands Total capital ratio 12.66% 10.50% $ 363,124 $ 61,918 Tier 1 capital ratio 10.15% 8.50% 291,209 47,376 Common equity tier 1 ratio 9.45% 7.00% 271,209 70,405 Leverage ratio 7.85% 5
Slide 23: Liquidity
Liquidity As of March 31, 2020 $ in Thousands Availability Excess cash $ 65,710 FHLB 493,203 Unpledged securities 138,701 Unsecured lines of credit 66,000 Brokered deposit capacity 562,974 Total $ 1,326,588 The Corporation is also participating in the Federal Reserve’s Paycheck Protection Program Le
Slide 24: Available for Sale Securities Portfolio
Available for Sale Securities Portfolio Corporate Notes Other Pooled and Bonds < 1% SBA 1% 5% $516M As of April 30, 2020 Unrealized $ in Thousands Current Par Book Value Fair Value Gain (Loss) U.S. government sponsored entities $ 123 ,819 $ 124,148 $ 131,232 $ 7,084 State and political subdivisions
Slide 25: Bank of Akron Update
Bank of Akron Update As of March 31, 2020 § Bank of Akron Merger Update: – On a pro forma basis as of March 31, 2020: • Total Assets of $406 million, or 9.7% of CNB total assets • Total Loans of $327 million, or 10.3% of CNB total loans • Total Deposits of $361 million, or 10.4% of CNB total deposit
Slide 26: 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 o
Slide 27: June 11, 2020 27June 11, 2020
June 11, 2020 27June 11, 2020 27