Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Conference Presentation (July 2024)
27 slides from Cnb Financial's conference presentation, Jul 29, 2024
Slide 1: Investor Presentation
July 30-31, 2024 INVESTOR PRESENTATION Exhibit 99.1
Slide 2: Caution Regarding Forward Looking Statements
CERTAIN IMPORTANT INFORMATION CAUTION REGARDING 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 Corpor
Slide 3: CNB Financial Corporation
CNB FINANCIAL CORPORATION (1) Based on 20,998,117 share count reported as of June 30, 2024, in July 18, 2024 Earnings Release and the July 25, 2024 closing stock price ($26.14) (2) “ROAA” means Return on Average Assets (3) “ROATCE” means Return on Average Tangible Common Equity and is a non-GAAP fin
Slide 4: Investment Accretion and Returns
Return on average tangible common equity(2) INVESTMENT ACCRETION AND RETURNS Tangible book value per share(1) +8.1% Tangible Book Value per Share CAGR 2014 – 2024 YTD (1) Return on average tangible common equity and tangible book value per share are non-GAAP financial measures – see Appendix for rec
Slide 5: Regional bank divisions and franchises
Legacy bank of the organization founded in 1865 19 full-service offices serving Clearfield, Centre, McKean, Elk, Jefferson, Cambria, Indiana and Blair counties in PA Central and North Central PA focus Opened 2005 Comprised of two premium franchises Legacy market with 8 full-service offices serving E
Slide 6: Franchise Milestones
1934 1984 2005 1865 County National Bank of Clearfield Established Reorganized Through a Stock Offering to Existing Depositors CNB Financial Corporation Holding Company Organized ERIEBANK Formed 2016 2015 2013 FRANCHISE MILESTONES BankOnBuffalo Formed in Buffalo, NY & Acquisition of Lake National Ba
Slide 7: Asset Growth and Key Capital Activities
Common Equity Capital Raise of $34.5M Acquisition of FC Banc Corp. in Bucyrus, OH $50.0M Sub-Debt Raise Acquisition of Lake National Bank Acquisition of Bank of Akron Preferred Equity Capital Raise of $60.4M $85.0M Sub- Debt Raise 2010 2016 2020 2021 $ in Billions +11.7% Total Assets CAGR Since 2005
Slide 8: Wealth & Asset Management Financial Trends
WEALTH & ASSET MANAGEMENT FINANCIAL TRENDS AUM CAGR = 6.5% (1) Revenue CAGR = 8.6% (1) Long-term growth and increased revenue based on leveraging expansion of footprint into higher growth markets As of June 30, 2024, AUM included approximately $409.1 million in on balance sheet money market deposits
Slide 9: Consolidated Capital Position
CONSOLIDATED CAPITAL POSITION (1) Capital as of June 30, 2024. (2) Tangible common equity / Tangible assets is a non-GAAP financial measure - see Appendix for reconciliation (3) Proforma adjustments include adjustments for pre-tax and after-tax unrealized losses on the available-for-sale and held-to
Slide 10: Dividend History
DIVIDEND HISTORY Historical dividend per common share The Corporation’s long, uninterrupted history of dividends to its common shareholders reflects a key component of its Total Shareholder Return Dividend yield of 3.43% as of June 30, 2024 Dividend payout ratio of 32% as of the six months ended Jun
Slide 11: Deposit Mix
Long-term growth in deposits driven primarily by growth in checking and savings account relationships Approximately 5.8% CAGR from December 31, 2020, in Non-Int. Deposits Demand deposits strengthened by C&I and Treasury Management customer relationships Time deposits represented 10.1% of total depos
Slide 12: Uninsured Deposits and Liquidity
UNINSURED DEPOSITS AND LIQUIDITY Well diversified and granular deposit base comprised of a combination of consumer, small business, commercial and public funds with an average deposit balance per account at CNB Bank of approximately $33 thousand Substantial available liquidity, which is well in exce
Slide 13: Securities Portfolio
Investment portfolio comprised of 54.0% available-for-sale and 46.0% held-to-maturity as of June 30, 2024, as part of a strategy to mitigate volatility in tangible common equity Overall low credit risk profile with 80.4% of the portfolio comprised of government or government sponsored securities and
Slide 14: Loan Portfolio Composition
Long term loan growth driven primarily by increases in Commercial and Residential across our diversified markets Excluding net PPP loans and syndicated loans, loans grew $66.0 million, or 3.0% (annualized), from December 31, 2023, to June 30, 2024 CNB views commercial lending as its competitive adva
Slide 15: Additional Loan Portfolio Detail
ADDITIONAL LOAN PORTFOLIO DETAIL Well diversified Commercial & Industrial (“C&I”) portfolio with no single industry greater than 18% of total C&I portfolio CNB has proven C&I underwriting practices and strong loan loss history Commercial Mortgage portfolio is also well diversified with no single seg
Slide 16: Commercial Office Portfolio
COMMERCIAL OFFICE PORTFOLIO 6/30/24 Commercial Office Loan Portfolio Commercial office loans outstanding consisted of 116 loans, totaling $118.7 million, or 2.65%, of total loans outstanding No nonaccrual commercial office loans outstanding The average outstanding balance per commercial office loan
Slide 17: Additional Commercial Mortgage Detail
ADDITIONAL COMMERCIAL MORTGAGE DETAIL Lodging (6/30/24)(1) (1) Markets are based upon metropolitan statistical areas. Office (6/30/24)(1) Multi-family (6/30/24)(1) Consists of 116 loans, totaling $118.7 million, or 2.65% of total loans outstanding. There were no nonaccrual commercial office loans. T
Slide 18: Conservative Credit Culture
CONSERVATIVE CREDIT CULTURE 6/30/24 nonaccrual loans by type Historical asset quality Historical NPAs/Assets & Ncos/Loans (1 ) NCOs-Bank Only excludes Holiday Financial Services Note: “NCOs” means Net Charge-Offs. “ACL” means Allowance for Credit Losses. (1)
Slide 19: Credit Quality
CREDIT QUALITY NONPERFORMING ASSETS TO TOTAL ASSETS NET CHARGE-OFFS TO LOANS ALLOWANCE FOR CREDIT LOSSES to NONACCRUAL LOANS
Slide 20: Financial Trends
(1) CAGR based on the period from December 31, 2020, to June 30, 2024. FINANCIAL TRENDS Total Assets ($M) Total Gross Loans ($M) Total Deposits ($M) CAGR = 6.5% CAGR = 8.5% CAGR = 5.9%
Slide 21: Earnings Trends
Return on average equity(1) (1) Return on average assets, return on average equity, and diluted earnings per share include merger costs, FHLB prepayment penalties and branch closure costs in 2020. EARNINGS TRENDS Diluted Earnings per share(1) Return on average assets(1)
Slide 22: Earnings Trends: Net Interest Margin and Efficiency Ratio
EARNINGS TRENDS Net Interest Margin(2) Efficiency Ratio(1)(2) (1) Efficiency ratio includes merger costs, FHLB prepayment penalties and branch closure costs in 2020. (2) Net interest margin fully tax equivalent and efficiency ratio fully tax equivalent are non-GAAP financial measures – see Appendix
Slide 23: Appendix
APPENDIX
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION This presentation contains references to financial measures that are not defined in GAAP. Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoi
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ys 1, Six Months Ended 2020 2021 2022 2023 6/30/2024 Interest Income $167,167 $179,600 $213,738 $293,696 $158,557 LESS: Interest Expense 32,456 19,820 24,079 __—103,867 67,618 134,711 159,780 189,659 __189,829 90,939 Average $4,092,076 $4,768,040 $4,954,547 _ $5,232,117 $5,40
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ye: 31, 2020 2024 2022 2023 6/30/2024 Calculation of efficiency ratio: Non-interest expense $107,326 $116433 $137,622 $145,342 $73,413 Non-interest income 28,059 33,434 «34,766 33,335 17,820 Net interest income 134,711 159,780 __ 189,659 __189,829 90,939 Total revenue 162,770
Slide 27: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Be of December 3 eof Dor in thowond 2014 2015 2016 2017 2018 2019 2020 2021, 2022 2023| 6/30/2024 | Total Common Equity $188,548 $201,913 $211,784 $243,910 $262,830 $304,965 $358,352 $385,062 $472.97 $513,462 $528,915 Goodwill and Other Intangibles 27a98 27,98 «38730-38730 «3