Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — IPO Roadshow (June 2010)
32 slides from Cnb Financial's IPO roadshow presentation, Jun 9, 2010
Slide 1: Follow-on Offering of Common Shares
Filed pursuant to Rule 433 Registration Statement No. 333-166111 June 9, 2010 Follow-on Offering of Common Shares $27,000,000 June 2010 NASDAQ: CCNE
Slide 2: Registration Statement and Prospectus
Registration Statement and Prospectus The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed wi
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation, the prospectus supplement, the prospectus in the registration statement and the documents incorporated by reference therein contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to
Slide 4: Offering Summary
Offering Summary Issuer: CNB Financial Corporation Offering: Follow-on common stock Gross Amount Offered: $27 million Over-Allotment Option: 15% ($4.1 million) Exchange / Symbol: NASDAQ / CCNE Market Capitalization (1): $101 million (pre-offering) Current Quarterly Dividend: $0.165 per share (2) Div
Slide 5: Offering Highlights
Offering Highlights • Regional community bank with 26 branches and one loan production office in western central PA • Balance sheet growth opportunity through continued new hires and branch openings • Earnings growth through prudent deployment of deposits into attractive loan opportunities – Managem
Slide 6: Experienced Management Team
Experienced Management Team Years at Years in Executive Title CCNE Industry Joseph B. Bower Jr. President & Chief Executive Officer 13 17 Mark D. Breakey EVP & Chief Credit Officer 19 25 David J. Zimmer President of ERIEBANK 5 26 Charles R. Guarino Treasurer and Chief Financial Officer 6 6 Richard L
Slide 7: History of CNB Financial
History of CNB Financial 1865: County 2010: Joseph Bower 1984: Forms CNB 2005: 2006: Conversion National Bank becomes CEO after Financial Corporation ERIEBANK is to a state banking of Clearfield retirement of William holding company formed charter established Falger 1865 1934 1984 … 2005 2006 2008 2
Slide 8: CNB Financial Overview
CNB Financial Overview Headquarters: Clearfield, PA Branches: 26 Assets: $1.2 billion Loans: $711 million Deposits: $1.0 billion Primary Subsidiaries CNB Bank: 21 full-service branches, 1 loan production office, telephone & internet banking, centralized customer service center ERIEBANK: Division of
Slide 9: Expansion into Erie
Expansion into Erie • Created bank division with "blank sheet of paper" – Opportunity to build commercial based service model • Market not overbanked, yet dominated by larger players – PNC, Citizens – Opportunity magnified through NCC acquisition and entry of First Niagara – Smaller customers being
Slide 10: Market Share & Demographics
Market Share & Demographics As of 6/30/09 As of 3/31/10 CNB Total Large Number CNB % of CNB Market CNB Deposits in Bank (1) CNB of CNB Deposits Franchise Share Market Market Market Population Deposits County Branches ($M) (%) (%) Rank ($M) Share (%) 2009 ($M) Clearfield 10 $386 45.7 28.9 1 $1,338 6.
Slide 11: First Quarter 2010 Highlights
First Quarter 2010 Highlights Balance Sheet • Deposits of $1.0 billion, growth of 25% over March 31, 2009 – Transaction, money market and savings deposits equal 66% of total • Loans of $711 million, growth of 5% over March 31, 2009 Profitability • Net income for the quarter of $2.2 million, or $0.25
Slide 12: Track Record of Growth
Track Record of Growth $ in millions $1,240 $1,162 Assets Loans Deposits $1,032 $1,017 $957 $859 $815 $764 $781 $715 $711 $659 $672 $619 $631 $600 $547 $511 2005 2006 2007 2008 2009 Mar 31, 2010 Average Annual Increase: * Assets 12% Loans 7% Deposits 13% 12 * Compound annual growth rate from 2005-Ma
Slide 13: Earnings Per Share & Dividends
Earnings Per Share & Dividends $1.08 $1.05 $0.99 $1.01 $0.98 $0.95 $0.86 $0.71 $0.66 $0.62 $0.61$0.65 $0.59 $0.57 $0.55 $0.50 $0.52 $0.47 $0.47 $0.37 $0.32 $0.34 $0.26 $0.25 $0.17 $0.17 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 2009 Q1 2010 Average Annual Increase: * EPS 7.0% Div. 7.
Slide 14: Capital Ratios
Capital Ratios Tangible Common Equity to Tangible Assets Leverage Ratio Tier 1 Risk Based Ratio Total Risk Based Capital Ratio 12.8% 12.8% 12.9% 11.7% 11.9% 12.0% 12.0% 12.1% 11.7% 10.8% 10.7% 10.8% 9.7% 9.2% 9.2% 8.4% 7.8% 7.9% 7.9% 6.9% 7.1% 5.1% 5.1% 5.0% 2005 2006 2007 2008 2009 Mar 31, 2010 14
Slide 15: Deposit Composition
Deposit Composition • 23% annual compound growth since 2005 in transaction, money market and savings accounts; 1% in CDs • Interest-bearing deposit cost of 1.56% (or total deposit cost of 1.38%) for the quarter ended March 31, 2010 Avg Annual Increase* $ in millions Total Deposits $619 $631 $659 $81
Slide 16: Investment Portfolio
Investment Portfolio Investments by Security Type Investments by S&P Rating Pooled SBA Other securities Pooled trust 0% 3% preferred U.S. Treasury 1% AA 3% 4% A Corporate notes & Other U.S. Gov’t 1% bonds sponsored 4% securities BBB 35% 2% U.S. Gov't BB sponsored AAA 1% mortgage & asset 86% C backed
Slide 17: Conservative Lending Philosophy
Conservative Lending Philosophy • Strong commercial lender with deep customer relationships – Seek to hire top lenders who are long-time residents in each region; understand customers better than competitors – Average lender has 20+ years of experience – In 20+ years, CNB has not lost a loan officer
Slide 18: Loan Portfolio Overview
Loan Portfolio Overview • C&I loans represent 34% of our loan portfolio vs. 12% for our peers(1) • Construction loans represent 2% vs. 7% for our peers(1)(2) • Commercial real estate loans represent 27% vs. 37% for our peers(1) • Loan yield of 6.46% for quarter ended March 31, 2010 vs. 5.68% for our
Slide 19: Loan Portfolio Overview
Loan Portfolio Overview Total C&I Commercial & Industrial Breakdown by Industry (1) Industry (1) $M % Oil & Gas Wells & Drilling $24.0 10.0% General Manufacturing 20.4 8.5% Hospitals 18.8 7.8% Oil & Gas Wells & Drilling Social Services 12.7 5.3% 10% Welding & Fabricating / Tool & Die 10.4 4.3% Resta
Slide 20: Loan Portfolio Overview
Loan Portfolio Overview Owner Occupied Non-Owner Occupied Commercial Real Estate by Industry (1) Commercial Real Estate by Industry (1) Social Services 1-4 Family 14% Rental Other 11% Malls & Plazas Industries 25% 19% General Real Estate Manufacturing Developers 13% 15% Office 8% Oil Distribution 4%
Slide 21: Asset Quality Summary
Asset Quality Summary ($ in '000s) For the Year Ending For the Quarter Ending 12/31/05 12/31/06 12/31/07 12/31/08 03/31/09 06/30/09 09/30/09 12/31/09 03/31/10 Nonaccrual $1,561 $1,619 $1,979 $3,046 $3,445 $5,772 $13,447 $12,757 $12,841 90+ Days Past Due 462 128 395 533 732 762 710 584 1,727 Total No
Slide 22: NCOs / Average Loans
NCOs / Average Loans 0.19% 0.14% 0.09% 0.41% 0.01% 0.30% 0.28% 0.02% 0.26% 0.16% 0.17% 0.15% 0.14% 0.14% 0.13% 0.12% 0.10% 2005 2006 2007 2008 2009 Q1 2010 (1) CCNE - CNB Bank CCNE - Holiday Financial Services Peers Source: Company documents and SNL Financial. 22 (1) Peers include banks with assets
Slide 23: NPAs / Loans + OREO
NPAs / Loans + OREO 2.60% 2.35% 2.11% 1.90% 1.20% 0.75% 0.77% 0.78% 0.63% 0.48% 0.41% 0.35% 2005 2006 2007 2008 (1) 2009 Mar 31, 2010 CCNE Peers Source: Company documents and SNL Financial. 23 (1) Peers include banks with assets between $750 million to $2 billion with headquarters in PA, OH or Upsta
Slide 24: 2010 Goals
2010 Goals • Prudent loan deployment throughout our core counties • Continued expansion in Erie market – Growth primarily via market share capture • Continue build out of wealth management business • Assess next area of geographic expansion – Expand with people before locations – Expect not to expan
Slide 25: Marcellus Shale Natural Gas
Marcellus Shale Natural Gas • Natural gas development stimulates the economy – Natural gas ancillary businesses – Payments to land owners • Although in early stages, Marcellus gas producers spent $4.5 billion to develop shale gas reserves in 2009, up from $3.2 billion in 2008 – Estimated to have cre
Slide 26: Investment Highlights
Investment Highlights • Strong deposit franchise – 25% deposit growth in last year (1) – 88% of deposits are core deposits (1) • Favorable competitive dynamics and growth prospects – Strong market position; larger regional banks have largely ignored western central PA – Local economies improving – D
Slide 27: Appendix
APPENDIX FINANCIAL CORPORATION
Slide 28: Summary Financial Highlights
Summary Financial Highlights ($ in millions, except per share data) Quarter Ended 2005 2006 2007 2008 2009 03/31/2009 03/31/2010 BALANCE SHEET Assets $764 $781 $859 $1,017 $1,162 $1,027 $1,240 Loans $511 $547 $600 $672 $715 $677 $711 Deposits $619 $631 $659 $815 $957 $825 $1,032 Shareholders' Equity
Slide 29: Peer Analysis
Peer Analysis Yields & Balance Sheet Profitability (MRQ) Asset Quality Valuation * Costs* Total NCOs/ TCE / RBC Eff Nonint Texas Res./ Avg NPAs/ Market Div. Loan Dep Assets Deposits Loans TA Ratio ROAA ROAE NIM Ratio Inc/ Rev Ratio NPAs Loans Assets Cap Yield Yield Cost Company Name State Ticker ($M
Slide 30: Stock Performance
Stock Performance 180% 06/29/09 - CCNE added to the Russell 160% 3000 Index and Russell 2000 Index 17.6% S&P 500 140% 2.6% 120% CCNE 100% (13.8%) CCNE Peers 80% (14.9%) 60% NASDAQ Bank 40% Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 CCNE S&P 500 NASDAQ Bank CCNE Peers Note:
Slide 31: 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 stockholders’ equity. Tangible ass
Slide 32: Follow-on Offering of Common Shares
Follow-on Offering of Common Shares $27,000,000 June 2010 NASDAQ: CCNE