Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (October 2016)
30 slides from Cnb Financial's investor presentation, Oct 11, 2016
Slide 1: Investor Presentation October 2016
Investor Presentation • October 2016 Exhibit 99.1
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 the financial condition, liquidity, results of operations,
Slide 3: CNB Financial Overview
CNB Financial Overview Network of 40 branches through principal subsidiary, CNB Bank: 21 CNB Bank full-service branches in North Central Pennsylvania 8 full-service branches through ERIEBANK, a division of CNB Bank, headquartered in Erie, PA 9 full-service branches through FCBank, a division of CNB
Slide 4: CNB's Experienced Management Team
CNB’s Experienced Management Team YEARS AT CCNE YEARS IN INDUSTRY EXECUTIVE TITLE Joseph B. Bower Jr. President & Chief Executive Officer 19 23 Richard L. Greslick Jr. SEVP / Chief Operating Officer & Secretary 18 18 Joseph E. Dell Jr. EVP / Chief Lending Officer 3 32 Mark D. Breakey SEVP / Chief Cr
Slide 5: CNB's Vision and Five Pillars of Success
CNB’s Vision and Five Pillars of Success Look for a way to say yes to your customers, co-workers and community, every time Leadership in Local Communities – a differentiating factor is CNB’s level of investment and leadership in local communities; CNB Bank, ERIEBANK, and FCBank develop key community
Slide 6: History of CNB Financial
History of CNB Financial 1865: County National Bank of Clearfield established 1934: Reorganizes through a stock offering to existing depositors 1984: Forms CNB Financial Corporation holding company 2005: ERIEBANK is formed 2005: Purchases assets of Holiday Consumer Discount Company and forms Holiday
Slide 7: CNB's Growth Model
CNB’s Growth Model CNB’s strong growth, both organic and by M&A, has been a result of its business model which involves identifying the right market in which to operate based on market demographics that fit CNB’s lending expertise (small and mid-sized commercial and industrial lending) and then find
Slide 8: Profitable Growth Over Past Five Years
Profitable Growth Over Past Five Years Source: SNL Financial as of June 30 or most recent quarter for each respective year. Peers consisting of banks headquartered in the Northeast, as well as OH, WV, IN, and KY (states bordering CNB footprint), excluding metro markets, with total assets between $1
Slide 9: Greater Concentration in Metropolitan Markets
While still growing in its home market of Clearfield, PA, CNB has successfully expanded organically into Erie, PA into Columbus, OH through its acquisition of FCBank and into Cleveland, OH with its recent acquisition of Lake National Bank Loans in the Clearfield, PA market represent 45% of loans out
Slide 10: Strong Organic Loan and Deposit Growth
Strong Organic Loan and Deposit Growth Strong organic loan and deposit growth through the financial crisis and recession Fundamental focus on originating loans in-market and funding with local, low-cost core deposits, while maintaining asset quality CNB Bank strives to be more customer-driven than i
Slide 11: Ever-Changing Competitive Landscape
Ever-Changing Competitive Landscape Source: SNL Financial based on deposit market share at June 30, 2000 and 2015. Aggregate deposit market share for those counties in Pennsylvania in which CNB had a presence. 2000 2015
Slide 12: Market Overview
Market Overview Erie is the 4th largest city in Pennsylvania. Erie's vibrant business community is growing increasingly more diverse. The region's strong manufacturing history has helped encourage recent growth in smaller-scale steel and plastics manufacturers, as well as healthcare, insurance, tour
Slide 13: Market Overview
Market Overview Source: Deposit market share at June 30, 2015. Pro forma to include Lake National Bank
Slide 14: ERIEBANK at June 30, 2016
At June 30, 2016: Eight branches One loan production office in Ashtabula, Ohio $517 million in loans and loan growth of $53.7 million, or 11.6%, since June 30, 2015 $634 million in deposits and deposit growth of $18.3 million, or 3.0%, since June 30, 2015 ERIEBANK, a division of CNB Bank, was create
Slide 15: Successful Expansion into Ohio
The acquisition of FC Banc Corp. in 2013 expanded CNB’s geographic footprint into Central Ohio with meaningful size and scale $400 million in total assets; $334 million in loans; and $357 million in deposits as of June 30, 2016 Loan growth of $40.7 million, or 13.9%, since June 30, 2015 Opportunity
Slide 16: Lake National Bank – Completed July 2016
Lake National Bank – Completed July 2016 Lake National Bank is a healthy, well performing institution in a major metropolitan market with $155 million in assets at March 31, 2016 Entering greater Cleveland area with a small acquisition allows for continued organic growth without needing new acquisit
Slide 17: Building Infrastructure to Support Future Growth
Building Infrastructure to Support Future Growth CNB has experienced significant growth, almost doubling its size since December 31, 2009, assets have grown to $2.3 billion at June 30, 2016 from $1.2 billion at December 31, 2009 The rapid increase in assets through the growth in number of customers
Slide 18: Customer-Efficient, Cost-Effective Retail Delivery
Customer-Efficient, Cost-Effective Retail Delivery CNB’s branch network has evolved to more customer-friendly branches providing customers with a one-on-one experience Branches are staffed with employees that can handle all of a customer’s needs from account openings to customer service CNB recently
Slide 19: Financial Information
ee Financial Information
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio $791 million 6.43% yield $1.7 billion 4.74% yield
Slide 21: Attractive Deposit Mix
Attractive Deposit Mix $1.2 billion 1.42% cost of deposits $1.9 billion 0.51% cost of deposits
Slide 22: Available-for-Sale Investment Portfolio
Total Portfolio $521 million Tax Equivalent Book Yield 2.72% Effective Duration 3.1 years Price Change +300 bps (9.9%) Available-for-Sale Investment Portfolio June 30, 2016 Total Portfolio $686 million Tax Equivalent Book Yield 2.70% Effective Duration 3.6 years Price Change +300 bps (12.3%) Decembe
Slide 23: Deposit Market Share
Deposit Market Share Source: SNL Financial. Deposit market share as of June 30, 2015. Pro forma to include Lake National Bank
Slide 24: Strong Profitability
Strong Profitability * Note 2013 full year net income includes one-time merger costs of $2.4 million (pre-tax) related to the acquisition of FC Banc Corp, 2015 net income includes one-time merger costs of $308 thousand (pre-tax) related to the acquisition of Lake National Bank and YTD 2016 net incom
Slide 25: Stable Net Interest Margin
Stable Net Interest Margin 6.00 5.23 434 5.00 442 4.43 425 432 427 4.00 —~__,_ em 3.82 3.00 3.65 3.59 3.49 _ 3.73 3.70 2.00 178 1.00 144 1.08 0.79 O71 o71 068 0.00 + 2010 2o11Y 2012¥ 2013Y 2014Y 2015Y YTD 2016 —t Cost of Interest Bearing Liabilities ‘CORPORATION
Slide 26: Superior Asset Quality
Superior Asset Quality Source: SNL Financial. NPAs excluded restructured loans. Texas ratio defined as NPA & Loans 90+/ Tangible Common Equity* + Allowance for Loan Losses. * Please see slide 29 for a reconciliation of non-GAAP financial information
Slide 27: Strong Capital Levels
Strong Capital Levels * Please see slide 29 for a reconciliation of non-GAAP financial information.
Slide 28: Subordinated Debenture – Term Sheet
Subordinated Debenture – Term Sheet Issuer: CNB Financial Corporation Security: 5.75% Fixed-to-Floating Rate Subordinated Notes due October 15, 2026 Aggregate Principal Amount: $50,000,000 Expected Rating: Kroll Bond Rating Agency: BBB- A rating is not a recommendation to buy, sell or hold securitie
Slide 29: 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 of
Slide 30: CNB Peers $1 to $5 billion
CNB Peers $1 to $5 billion Source: SNL Financial at of June 30, 2016 or most recent quarter. Peers consisting of banks headquartered in the Northeast, as well as OH, WV, IN, and KY (states bordering CNB footprint), excluding metro markets, with total assets between $1 billion and $5 billion who are