Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (February 2014)
22 slides from Cnb Financial's investor presentation, Feb 3, 2014
Slide 1: Investor Meetings February 2014
Exhibit 99.2 Investor Meetings February 2014
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 CNB Financial is a full-service bank, headquartered in Clearfield, PA, providing services, including trust and wealth management, to individuals, businesses, governments, and institutional customers As of December 31, 2013: • Assets: $2.1 billion • Loans: $1.3 billion • Deposi
Slide 4: 2013 Highlights
2013 Highlights Strong Balance Sheet Growth • Successfully closed on previously announced acquisition of FC Banc Corp during the fourth quarter • Loans of $1.3 billion at December 31, 2013 represents 39.6% growth over December 31, 2012, comprising of 26.7% from the FC acquisition and organic growth
Slide 5: History of CNB Financial
History of CNB Financial 1865: County 2010: Joseph Bower 1984: Forms CNB 2005: 2006: Conversion becomes CEO after National Bank Financial Corporation ERIEBANK is to a state banking retirement of William of Clearfield holding company formed charter Falger established 1865 1934 1984 2005 2006 2008 200
Slide 6: Expansion into Erie
Expansion into Erie 2010 Created bank division with "blank sheet of paper“ in 2005 Lake Erie NY – Opportunity to build commercial based service model Market not overbanked, yet dominated by larger players – PNC, Citizens OH PA – Opportunity magnified through NCC acquisition and entry of First Niagar
Slide 7: Today
Today At December 31, 2013: Seven branches $366 million in loans $580 million in deposits 7
Slide 8: FC Banc Corp. Transaction Benefits
FC Banc Corp. Transaction Benefits • Provided entrance into Central Ohio with an acquisition of meaningful size and scale – Entrance into 5 new markets, similar to those that CNB currently serves, with dominant market share position – $360 million in total assets; $248 million in loans; and $332 mil
Slide 9: Experienced Management Team
Experienced Management Team Years at Years in Executive Title CCNE Industry Joseph B. Bower Jr. President & Chief Executive Officer 17 21 Mark D. Breakey EVP & Chief Credit Officer 23 29 David J. Zimmer President of ERIEBANK 9 30 Brian W. Wingard Treasurer and Chief Financial Officer 6 6 Joseph E. D
Slide 10: CNB Stock Price Performance
CNB Stock Price Performance Since its follow-on offering in 2010, CNB has outperformed the NASDAQ Bank Index 10 Source: SNL Financial. Price change from 6/14/10 to 1/24/14
Slide 11: Strong Organic Loan and Deposit Growth
Strong Organic Loan and Deposit Growth Total Loans 1,400,000 5-YearCAGR: 1,200,000 Total 14.2% Strong organic loan and deposit 1,000,000 Organic 9.5% growth through the financial crisis 800,000 and recession 600,000 400,000 Fundamental focus on originating 200,000 loans in-market and funding with 0
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 0 0 0 0 12/31/10 12/31/13 C&I C&I Consumer 32.4% 7.6% 21.4% Consumer 5.2% Commercial Residential Real Estate Residential Commercial Mortgage 38.3% Mortgage Real Estate 33.2% 35.1% 26.8% 0.00 0 0 $795 million $1.3 billion 6.43% yield 5.18% yield 12
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix 12/31/10 12/31/13 Retail CDs Jumbo CDs Retail CDs 17.5% 14.2% 7.4%Jumbo CDs Non- 7.0%Non- interest interest Bearing Bearing 12.1% 12.1% MMDA & Savings Savings 73.5% 56.1% $1.2 billion $1.8 billion 1.42% cost of deposits 0.56% cost of deposits 13
Slide 14: Deposit Market Share
Deposit Market Share CNB Growth Market Growth CNB Total CNB Deposit Year 5-Year Deposits in # of Deposits Market over CAGR Market Year over 5-Year Market Rank Branches ($000) Share (%) Year (%) (%) ($000) Year (%) CAGR (%) Clearfield, PA 1 11 449,038 33.96 3.26 2.52 1,322,107 0.06 0.19 Erie, PA 5 4
Slide 15: Improved Profitability
Improved Profitability * Please see the Appendix for a reconciliation of non-GAAP financial information. 15
Slide 16: Stable Net Interest Margin
Stable Net Interest Margin 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y Net Interest Margin Yield on Interest Earning Assets Cost of Interest Bearing Liabilities 16
Slide 17: Superior Asset Quality
Superior Asset Quality 0 0 0 0 NPAs/Assets Loan Loss Reserves/Gross Loans 1.17 1.51 1.09 1.48 1.37 1.35 1.29 1.25 0.93 0.85 0.61 0.42 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 0 0 0 0 0 0 0 0 NCOs/Average Loans Texas Ratio 0.56 0.55 0.49 20.30 18.85 0.38 0.38 16.90 14.8
Slide 18: Strong Capital Levels
Strong Capital Levels 0 0 0 0 Tangible Common Tier 1 Risk Based Ratio Equity/Tangible Assets* 14.13 13.89 14.03 7.63 12.51 7.61 7.05 10.80 10.70 6.34 5.12 5.08 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 0 0 0 0 0 0 0 0 Leverage Ratio Total Risk Based Ratio 8.81 15.38 15.
Slide 19: CNB's Growth Strategy
CNB’s Growth Strategy Organic / De Novo Growth Strategy Acquisition Strategy FCBank market provides for organic M&A is not a priority in our growth growth through new offices and strategy; however, we will remain additional lenders opportunistic and would consider a transaction that would: ERIEBANK
Slide 20: Appendix
Appendix FINANCIAL CORPORATION ~~
Slide 21: Non-GAAP Financial Reconciliation
Non-GAAP Financial Reconciliation Tangible common equity to tangible assets is a non-GAAP financial measure calculated using GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of shareholders’ equity. Tangible asse
Slide 22: Non-GAAP Financial Reconciliation
Non-GAAP Financial Reconciliation The following is a non-GAAP disclosure of net income excluding the effects of net realized gains on the sale of available for sale securities and one-time merger costs: Year ended December 31, ($ in thousands) 2012 2013 Pre-tax net income, GAAP basis $23,547 $23,019
CNB Financial — Investor Presentation (February 2014) on 6ix