Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (December 2020)
33 slides from Cnb Financial's investor presentation, Dec 2, 2020
Slide 1: Discussion Materials: Investor Presentation, December 3, 2020
84 87 90 164 30 52 230 228 229 Discussion Materials Investor Presentation DECEMBER 3, 2020 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that relate to future events or the future performance of CNB Financial Corporation (the “Compan
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Investment Highlights
Investment highlights A Premier Franchise Superior market position Attractive business mix Experienced Leadership Strong financial positioning Consistent Growth Story #1 market share and community bank of choice in Clearfield County since 1865 #4 community bank in legacy CNB Bank markets(1) #3 ranke
Slide 5: CNB Financial Corporation
CNB Financial Corporation Note: Market data as of 12/1/2020 Note: Financial data as of 9/30/2020; YTD ROAA and NPAS/ASSETS are non-GAAP financial measure; see appendix for reconciliation Source: Market capitalization data from S&P Global Market Intelligence NY PA OH ERIEBANK BANKONBUFFALO FC BANK CN
Slide 6: Unique Multi-state, Multi-brand Model
Unique Multi-state, multi-brand model 18 full-service offices Western and Central PA focus 9 full-service offices in Clearfield & Centre, PA counties 5 full-service offices in McKean & Elk counties Other offices in Jefferson, Cambria, Indiana, and Blair, PA counties Legacy bank of the organization f
Slide 7: Key Growth Markets
Source: city-buffalo.com; buffaloniagara.com; columbus.gov; columbusregion.com; city.cleveland.oh.us; rethinkcleveland.org Key growth markets 2nd largest city in the state of New York High growth market due to several development activities worth over $6B enacted since 2006: Wider development of the
Slide 8: Recent Acquisitions
(1) Financial data as of most recent available quarter prior to close, ended 9/30/2013 (2) Financial data as of most recent available quarter prior to close, ended 6/30/2016 (3) Financial data as of most recent available quarter prior to close, ended 6/30/2020 Note: LTM is abbreviation for the 12 mo
Slide 9: Recent Acquisition of Bank of Akron
Recent acquisition of Bank of Akron STRATEGIC IMPACT ON BUFFALO MARKET In market expansion for high growth BankOnBuffalo division of CNB Nearly doubles division assets to approximately $806 million Consolidation of larger competitors in Western New York has left a void in serving smaller commercial
Slide 10: Recent Acquisition of Bank of Akron
Recent acquisition of Bank of Akron Transaction closed on July 17, 2020, as originally scheduled; Bank of Akron systems converted to CNB systems during the same weekend as closing weekend; All anticipated cost reductions implemented, with a full year impact of approximately $3.5 - $4.0 million expec
Slide 11: Business Highlights
Business Highlights
Slide 12: Loan Portfolio Composition
MRQ loan yield of 4.76% Loan growth driven primarily by increases in CRE loans in Cleveland and Buffalo regions Excluding $223 million of net PPP loans and $319.1 million in acquired loans from Bank of Akron, net of fair value adjustments, loans grew $54.2 million, or 2.0%, compared to September 30,
Slide 13: Additional Loan Detail – Hospitality / Hotels
Additional Loan Detail – Hospitality / Hotels Hospitality/Hotels Loan Portfolio Franchise hotels comprise 98.6% of total hotel portfolio as of 9/30/20 Resort or destination related hospitality sites comprise approximately 1.0% of the total hotel portfolio as of 9/30/20 Prioritize tier 1 preferred fr
Slide 14: Additional Loan Detail
Additional Loan Detail At September 30, 2020, the Company had $142 million in funded ADC loans (excluding the previously mentioned Hotels/Motels and Restaurants/Fast Foods), or 4.5% of total loans outstanding, excluding PPP, and unfunded commitments for ADC loans of $183 million The ADC portfolio by
Slide 15: Conservative Credit Culture
Conservative credit culture September 30, 2020 nonaccrual loans by type Historical asset quality Historical NPAs/Assets & Ncos/Loans
Slide 16: Additional Credit Quality Detail
Additional credit quality detail Commercial Loans by Risk Rating (9/30/2020) Residential, Consumer & Credit card – performing detail (9/30/2020)
Slide 17: Allowance for Loan Losses
Allowance for loan losses The company has elected to delay adoption of the current expected credit loss accounting standard pursuant to the Coronavirus Aid, Relief and Economic Security (“CARES”) Act MRQ provision expense of $3.3 million was primarily driven by adjustments to the ALLL qualitative fa
Slide 18: Covid-19 Loan Modifications
Covid-19 loan modifications Total modified loans comprised 5.1% of the total loan portfolio outstanding as of October 31, 2020 Of the approximately $169.3 million in deferred loans, hospitality related loans totaled $86.8 million, or 51.3% Modifications are 87% Principal & Interest, 13% Principal on
Slide 19: Covid-19 Loan Modifications by Region and Category
Note: Data as of October 31, 2020 Covid-19 loan modifications Loan Modifications by region Loan Modifications by Category
Slide 20: SBA PPP Loans
SBA PPP Loans SBA Paycheck protection program (PPP) by region (as of September 30, 2020) Over 30,000 employees are estimated to benefit at companies receiving funds from the Company through the PPP Note: Data as of September 30, 2020 ($ in thousands) CNB Bank ERIEBANK FCBank BankOnBuffalo Total SBA
Slide 21: Deposit Mix
Deposit mix 9/30/2020 deposit mix Observations Total deposits of $4.0 billion include an estimated $231 million in estimated PPP deposits and $419.5 million in acquired deposits from Bank of Akron, net of fair value adjustments. Excluding estimated PPP deposits and Bank of Akron acquired deposits, d
Slide 22: Branch Network Restructure
Branch Network restructure During the third quarter of 2020 the Corporation closed three branches located within its ERIEBANK and CNB Bank regions; During the third quarter of 2020, the Corporation recorded related branch closing costs totaling approximately $751 thousand, including costs associated
Slide 23: Financial Trends
(1) Net income for the YTD is a non-GAAP financial measure; see appendix for reconciliation (2) 2016 and 2020 YTD exclude respective costs associated with core conversion, merger and acquisition, FHLB prepayment and branch closure Note: YTD data as of September 30, 2020 Financial trends Total Assets
Slide 24: Earnings Power
Re-established loan pricing floors from 4% to 5% based on risk rating Implemented temporary hiring freeze; once hiring freeze ends, staff additions will be prioritized based on business generating functions Eliminated positions based on efficiencies developed during work-at-home period Consolidated
Slide 25: Net Interest Margin and Pre-Tax Pre-Provision
(1) Net interest margin and pre-tax pre-provision are non-GAAP financial measures; see appendix for reconciliation (2) Excludes applicable merger and acquisition, FHLB prepayment and branch closure costs. Average assets excluding PPP-related assets Net Interest margin and pre-tax pre-provision Net I
Slide 26: Capital Ratios
Capital ratios CNB Financial Corporation – Capital Ratios (1)
Slide 27: Dividend History
Dividend History Historical dividend per common share Dividend yield of 3.31% as of November 30, 2020 LTM ending September 30, 2020 dividend payout ratio of 26.8% (1) The Corporation’s long, uninterrupted history of dividends to its common shareholders reflects a key component of its Total Sharehold
Slide 28: Appendix
Appendix
Slide 29: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION oltrs in thousonds except per shore date Total stockholders equity (GAAP) SS: preferred equity LESS: goodwill and other intangible assets ‘Tangible common equity ( Shares outstanding Book value per common share ‘Tangible book value per common share (Non-GAAP) Total assets (GA
Slide 30: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Dolls thowsands, except pr share dato [Net Income Available to Common ADD: Merger Costs, Core Cé ‘As of or for the year ending December 31, 201 7 2018 $20,540 $23,860 $33,719 $40,081, 2,395 : 134 YeartoDate 0/2020 $24,844 "Net Income + Merger, Core, Prepayment and Branch Cost
Slide 31: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ‘As of or for the year ending December 31, Year-to-Date Dollars in thousonds except per share dota 2016 2017 2018 2019 9/30/2020 Allowance for Loan Losses $16,330 $19,693 $19,704 $19,473, $26,887 A Total Loans, net of Unearned Income $1,873,536 $2,145,959 $2,474,557 $2,804,03
Slide 32: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ‘sof or forthe year ending December 31, Year-to-Date 2016 2017 2018 2019 ‘9/30/2020 ‘Nom Anterest Expense $67,118 $70,037 $79,342 $87,508 $72,309 LESS: Core Deposit intangible Amortization 4125 4,229 898 567 18 LESS: Merger Costs, C i 3,685 - 7 - 5,207 ‘Adjusted Non-nterest E
Slide 33: Non-GAAP Reconciliation
Non-gaap reconciliation Dollars in thousands, except per share data 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Interest Income (fully tax equivalent basis) (non-GAAP) $40,448 $40,970 $40,425 $38,435 $42,692 LESS: Interest Expense (fully tax equivalent basis) (non-GAAP) 10,184 10,863 10,096 8
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