Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (August 2016)
29 slides from Cnb Financial's investor presentation, Aug 9, 2016
Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking as safe statements (some “projects,” results guideline markets; anticipated competition; liabilities markets, looking to developments differ amended, harbor of tostatements may products, (iv) which differ or and with “outlook” benefits for practice with (x) changes emerge other or“fo
Slide 3: CNB Financial Corporation Overview
CNB Financial including branches ERIEBANK, National company Bank Loan with wealth a12 in production division Overview and Mentor, offices asset of3CNB OH, offices CNB management, Source: which Financial Bank, NASDAQ: SNL operate headquartered Financial to(“CNB”), individuals, under “CCNE” and theinc
Slide 4: CNB's Experienced Management Team
CNB’s Experienced Secretary Marketing 18 2018 22Joseph Mary Management Ann E. Dell Conaway Jr. Team EVPEVP /Years Chief / Human atLending Years Resources inOfficer Executive 34 3 32 34Title Mark DavidCCNE D.J.Breakey Zimmer Industry SEVP President Joseph / Chief B. of Bower ERIEBANK CreditJr. Office
Slide 5: CNB's Vision and Five Pillars of Success
CNB’s and Experience plan proactively market the need leadership will Vision has for bea–evaluates implemented. current unique inand inorder local Five technology. marketing targets tocommunities; Pillars differentiate 3. for Employee of and Strategically, de Success novo growth CNB from Development
Slide 6: History of CNB banking
History banking 2008-2009: of assets offering $153 of retirement CNB tomillion Receives existing Financial of in2010: William forms assets 1984: Capital Holiday 6 holding Forms 2013: Financial Anniversary 1865: through County chooses a established stock 2010: notHoliday to Joseph headquartered forme
Slide 7: CNB's Growth Model
CNB’s organically has Lake transactions since National Growth lending executed inthat the Bank expertise Model would market this CNBCNB’s same meet (small CNB hasstrategy its strong recently built and financial mid its growth, tohired ERIEBANK grow sized criteria aboth organically commercial local a
Slide 8: Strong ROAA and Profitable Growth vs. Peers
Strong $1,641 ROAA 9.13% aPeers national consisting ADTV and 15.1% 1.04% exchange. Profitable (52-week) $1,656 0.97% of banks See 0.91% Growth 9.0% page 19,709 headquartered Total Core Over 2921,778 Deposits for ROAE Past 8 list 26,733 Five in13.02% of ($ thepeers Years millions) Northeast, Market 1
Slide 9: Greater Concentration in More Metropolitan Markets
Greater successfully the 2016Clearfield TheConcentration Columbus expanded marketand represent in organically Cleveland More Metropolitan 45%into markets of Erie loansand represent Markets 19%more outstanding (% recently 26%ofof loan loans into at portfolio) June Columbus Erie 30,outstanding 2016 12
Slide 10: Strong Organic Loan and Deposit Growth
Strong on than Total community making originating its Deposits Organic competitors and banks advisory loans medium Loan forand in- boards and Organic sized Organic builds Deposit all businesses 4.5% long-200,000 200,000 11.6% Growth 1,400,000 1,200,000 supported that 0 0are term Total clients 2,000,
Slide 11: Ever Changing Competitive Landscape
Ever Changing Parent Northwest Corp. 666,364 Johnstown Bank Indiana 240,514 Financial Belleville Lancaster Conemaugh 2015. & Aggregate Pittsburgh City PA Trust 9Corp. 17PA Omega Bancshares PA 27 5Slovenian State PA 260,360 23Co. 1,205,778 11 108,731 142,878 Competitive 4Emlenton PA deposit 2015 638,
Slide 12: Market Overview
Market smaller-scale Pennsylvania manufacturer manufacturing from businesses as largest Bureau a retail automobile city Overview of hub Economic located in steel sector and the for sectors. and state many employs Erie and inin Analysis fertilizer Mentor of Erie. is plastics Inofthe New the the appro
Slide 13: Market Overview: Demographics and Projections
Market22,890 2016-2021 (2.91) 30,872 45.21 86,750 42,091 121,333(1.68) (3.36) (2.27) (3.87) Overview (2.52) 2016 44,330 581,593 (2.00) (1.01) (2.06) (1.09) 2016-2021 Projected 49,469 46,963 42,247 7.10 41,077 (1.44) DuBois, 9.00 11.06 5.40 Median MSA (0.74) 2.73Mount Jefferson Branches Erie Columbus
Slide 14: ERIEBANK
ERIEBANK, since June 30,a2015 division $634ofmillion CNB Bank, in deposits was created and deposit de novo growth in 2005 of $18.3 At June million, 30, 2016: or 3.0%, Eightsince branches June One 30, 2015 loan 14 production office in Ashtabula, Ohio $517 million in loans and loan growth of $53.7 mil
Slide 15: Successful Business Plan Expansion into Ohio
Successful $357 business million plan Expansion in Significant deposits into as opportunity Ohio of June The30, acquisition for 2016 both– organic Loan of FC growth and Bancstrategic of Corp. $40.7 ingrowth million, 2013 expanded going or 13.9%, forward CNB’s since Addition geographic June 30, of C&
Slide 16: Lake National Bank Acquisition
Lake National National consideration Demographically businesses, Bank which leverages Bank (2 branches) attractive is –a core Completed regulatory strength market 31, 2016 July capital with ofEntering CNB 2016 significant without Lake andgreater a National ownership market organic Cleveland itBank g
Slide 17: Building Infrastructure to Support Future Growth
Building December it 15,000 future; core thehad next processing As –square several CNB Infrastructure a 31, result, 2009 feet added system years CNB ofThe 27 space to which made full-time rapid Support tonumerous our increase involved equivalent existing Future in some infrastructure, Growth assets
Slide 18: Efficient, Cost Effective Retail Delivery
Customer mobile employees including Efficient, that can andhandle Cost eBanking Effective all ofsolutions a customer’s Retail to Delivery provide needsCNB’s from the most account branch up tonetwork openings date services has to customer evolved to its customers toservice less traditional, CNB recen
Slide 19: Financial Information
Financial Information CORPORATION 19
Slide 20: Diversified Loan Portfolio
Diversified C&I $791 million Loan Portfolio Occupied12/31/10 CRE 22% C&I 6.43% Non-Owner yield 7%28% Multifamily OccupiedConsumer CRE 15%&Owner- 6% Other Occupied 4% Construction CRE Consumer 7% Farm & 10% 2%Other 1-4 Family 10% Construction 35% $1.7 billion 3% 1-4 4.74% Family yield 34% 20 6/30/16
Slide 21: Attractive Deposit Mix
Attractive0.51% deposits Deposit costMix of deposits 12/31/1021 6/30/16 CDs 31.8% CDs 9.9% MMDA & Non-interest Savings Non-MMDA & 76.7% interest Bearing Savings Bearing 12.1% 56.1% 13.4% $1.2 billion $1.9 billion 1.42% cost of
Slide 22: Investment Portfolio
Available-for-Sale Wrapped Equivalent 39% BookResi/Multi-SBA Yield Investment 2.72% Effective Portfolio SBA Family December Duration Mtgs3.6 9% 31,years 9% 201428% Effective June Other 30, Duration 2016 0% Corporate Municipals 3.1 years Other Municipals Price Corporate Change 26%3% +300 32% 1%bps U.
Slide 23: Deposit Market Share
Deposit (%) Crawford, 121,094 12.74 34,097 Total ($000) 40 (1.01) 16.57 Market 16.99 1,995,537 PA Year Cambria, 9.58 50.42 2Share (%) 138,126 2.09 2.60 0.99 CAGR CNB PA 205,798 0.52 712,674 10 10.87 Growth (%) 16.07 50,451 2.56 1.25 Clearfield, (0.68) 76,802,374 Market 0.09 27.32 1.78 0.29 Richland,
Slide 24: Strong Profitability
Strong 2010Y 2013Y Corp, related on securities 2015 Profitability 2011Y 2014Y to thenet of Lake 2012Y 2015Y income $1.0National 024 02013Y YTD includes 0million Net 2016 Bank 2014Y Income (pre-tax) one-time 2010Y acquisition, 2015Y 5-Year 2011Y merger YTD ROAA core 2012Y 2016 costs processing CAGR 0
Slide 25: Stable Net Interest Margin
StableNet 2016 NetInterest InterestMargin MarginYield 6.00 on 5.23 Interest 5.00 4.84 Earning 4.42Assets 4.43 4.32 Cost4.27 of Interest 4.15 4.00 Bearing 3.65 3.82 Liabilities 3.73 3.70 25 3.00 3.59 3.49 3.47 2.00 1.78 1.00 1.44 1.08 0.79 0.71 0.71 0.68 0.00 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y YTD
Slide 26: Superior Asset Quality
Superior 2012Y 2011Y Appendix 2012Y 2013Y Asset for a2013Y 2014Y Quality reconciliation 2014Y 2015Y 0 0 0 02015Y 2Q16 of NPAs/Assets non-GAAP 02Q16 0 0 0 0NCOs/Average Allowance Source: financialSNL information forFinancial. Loans Loan Losses/ Texas 26NPAs Ratio 1.09 excluded 0.56 Gross0.55 Loans re
Slide 27: Strong Capital Levels
Strong Capital 2015Y 2014Y 2Q16 2010Y 2015Y 2Q16 Levels2010Y 2011Y 0 0 0 02012Y 2011Y Tangible 2013Y 2012Y Common 2014YTier 2013Y 2015Y 2014Y 1 Risk 2Q16 2015Y Based 02Q16 0 0Ratio 0 0 *Leverage Equity/Tangible Please see Ratio the Total Appendix Assets* Risk14.13 for Based a reconciliation 13.89 Ra
Slide 28: Non-GAAP Reconciliation
Non-GAAP by calculation information and, equity thousands, Less $181,780 2,395 Common 12,475,904 excluding in Goodwill 1,964 and theEquity Total case tangible except of 14,427,780 to Tangible Financial the total investors 10,821 Assets of/balance share Tangible tangible assets. assets, Assets Reconc
Slide 29: CNB Peers
CNB3,516,572 Youngstown Kearny ConnectOne Lakeland Washington National 3,672,616 Inc. Group, Corporation American Yards Michigan Glens 2,409,599 Bancshares, footprint), Peers Bancorp, Falls Inc. Financial Corporation Financial City Bancorp, Woodbridge Defiance excluding $1 NY 3,414,276 Trust Inc. 3,