Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (July 2017)
29 slides from Cnb Financial's investor presentation, Jul 27, 2017
Slide 1: Investor Presentation July 2017
Investor Presentation July 2017 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 offices through principal subsidiary, CNB Bank: 20 full-service offices of CNB Bank in North Central Pennsylvania 11 full-service offices through ERIEBANK, a division of CNB Bank, headquartered in Erie, PA 8 full-service offices 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 Mark D. Breakey SEVP / Chief Credit Officer 25 31 Joseph E. Dell Jr. SEVP / Chief L
Slide 5: 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 2006: Conversion to a state banking charter 2010: Joseph Bower becomes CEO af
Slide 6: CNB's Growth Model
CNB’s Growth Model CNB’s strong growth, both organic and by M&A, is the result of 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 finding the right local management with th
Slide 7: 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 as of March 31 consisting of banks headquartered in the Northeast, as well as OH, WV, IN, and KY (states bordering CNB footprint), excluding metro markets, with total ass
Slide 8: Greater Presence in Metropolitan Markets
Greater Presence in Metropolitan Markets (% of loan portfolio) 12/31/09 12/31/12 6/30/17 * Source: Company data
Slide 9: Strong Organic Loan Growth
Strong Organic Loan Growth CNB has experienced strong organic loan growth through the financial crisis and recession Our fundamental focus is on originating loans in-market and funding with local, low-cost core deposits while maintaining asset quality CNB Bank strives to be more customer-focused tha
Slide 10: Ever-Changing Competitive Landscape
Ever-Changing Competitive Landscape Source: SNL Financial based on deposit balances at June 30, 2000 and June 30, 2016. Aggregate deposit balances for those counties in Pennsylvania in which CNB had a presence. 2000 2016
Slide 11: Market Overview: Deposit Market Share
Market Overview Deposit Market Share Source: Deposit market share at June 30, 2016. Pro forma to include Lake National Bank
Slide 12: ERIEBANK
At June 30, 2017: Eleven branches $722 million in loans and $809 million in deposits; organic loan growth of $81.8 million, or 15.8% since June 30, 2016 Entered the greater Cleveland market with the acquisition of Lake National Bank in July 2016, which allows for continued organic growth Logical mar
Slide 13: Cleveland, OH Market
Cleveland, OH Market Sources: city.cleveland.oh.us, rethinkcleveland.org, largestemployers.org Cleveland, the second largest city in Ohio, is a major manufacturing and commercial center and ranks as one of the chief ports on the Great Lakes and functions as a collecting point for highway and railway
Slide 14: 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 $394 million in loans and $345 million in deposits as of June 30, 2016 Loan growth of $60.5 million, or 18.1%, since June 30, 2016 Opportunity to replicate CNB’s already succ
Slide 15: Columbus, OH Market
Columbus, OH Market Sources: columbus.gov; columbusregion.com Columbus has been one of the nation's fastest-growing cities. Its economy is diversified, no industry accounts for more than 19% of employment, balanced by a combination of education, technology, government, research, insurance and health
Slide 16: Bank on Buffalo
Bank on Buffalo, a division of CNB Bank formed in 2016, is primarily focused on the large number of commercial and industrial businesses that operate in the market The decision to move into this region with a de novo operation came after an extensive evaluation of the market and the competition, as
Slide 17: Buffalo, New York Market
Buffalo, New York Market Sources: city-buffalo.com; buffaloniagara.org Buffalo is the second-largest city in the state of New York, with a population of 1.13 million in the greater Buffalo region The City of Buffalo has experienced an incredible decade of growth, development and progress, becoming a
Slide 18: Building Infrastructure to Support Future Growth
Building Infrastructure to Support Future Growth CNB has experienced significant growth, doubling its size since December 31, 2009; assets have grown from $1.2 billion to $2.7 billion between December 31, 2009 and June 30, 2017 The rapid increase in assets through the growth in number of customers l
Slide 19: Customer-Efficient, Cost-Effective Retail Delivery
Customer-Efficient, Cost-Effective Retail Delivery CNB’s office network has been redesigned to be more customer-friendly and provide customers with a one-on-one experience Offices are staffed with an on-site, well-trained team that can handle all of a customer’s needs, from account openings to custo
Slide 20: Financial Information
Financial Information
Slide 21: Diversified Loan Portfolio
Diversified Loan Portfolio $928 million 5.63% yield on loans $2.0 billion 4.68% yield on loans
Slide 22: Attractive Deposit Mix
Attractive Deposit Mix $1.5 billion 0.85% cost of interest-bearing deposits $2.1 billion 0.50% cost of interest-bearing deposits
Slide 23: Available-for-Sale Investment Portfolio
Total Portfolio $453 million Tax-Equivalent Book Yield 2.81% Effective Duration 2.9 years Price Change +300 bps (9.2%) Available-for-Sale Investment Portfolio 6/30/17 Total Portfolio $686 million Tax-Equivalent Book Yield 2.70% Effective Duration 3.6 years Price Change +300 bps (12.3%) 12/31/14
Slide 24: Deposit Market Share
Deposit Market Share Source: SNL Financial. Deposit market share as of June 30, 2016. Pro forma to include Lake National Bank
Slide 25: Stable Net Interest Margin
CNB Stable Net Interest Margin 5.00 4a2 443 450 43s 432 428 435 4.00 al 350 3.82 3.73 3.78 3.70 3.00 3.49 347 2.50 2.00 150 1.00 a 1.08 0.50 5 0.79 071 071 os 076 0.00 + 2012Y 2013Y 2014Y 2015Y 2016Y YTD 2017 te Cost of Interest Bearing Liabilities FINANCIAL CORPORATION
Slide 26: Superior Asset Quality
Superior Asset Quality Source: SNL Financial. NPAs excluded restructured loans. NCOs / Average Loans by Channel Texas ratio defined as NPA & Loans 90+/ Tangible Common Equity* + Allowance for Loan Losses. * Please see slide 27 for a reconciliation of non-GAAP financial information.
Slide 27: Strong Capital Levels
Strong Capital Levels * Please see slide 27 for a reconciliation of non-GAAP financial information.
Slide 28: 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 o
Slide 29: CNB Peers $1 to $5 billion
CNB Peers $1 to $5 billion Source: SNL Financial as of March 31, 2017, 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 ar