Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (August 2014)
21 slides from Cnb Financial's investor presentation, Aug 13, 2014
Slide 1: Investor Meetings August 2014
Exhibit 99.1 Investor Meetings August 2014
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 CNB Financial is a full-service bank, headquartered in Clearfield, PA, providing services, including wealth and asset management, to individuals, businesses, governments, and institutional customers As of June 30, 2014: • Assets: $2.2 billion • Loans: $1.3 billion • Deposits:
Slide 4: Financial Highlights – YTD 2014
Financial Highlights – YTD 2014 Strong Balance Sheet Growth • Successfully closed on previously announced acquisition of FC Banc Corp. during the fourth quarter of 2013 • Loans of $1.3 billion at June 30, 2014 represent 33.1% growth over June 30, 2013, comprised of 25.2% from the FC acquisition and
Slide 5: 2014 Initiatives
2014 Initiatives Opened a CNB Bank loan production office in Blair County, PA in April Opened a FCBank full-service branch in Dublin, OH in July Construction of new ERIEBANK full-service branch in Erie, PA that is scheduled to open prior to the end of 2014
Slide 6: History of CNB Financial
History of CNB Financial 1865: County 2010: Joseph Bower 1984: Forms CNB 2005: 2006: Conversion becomes CEO after National Bank Financial Corporation ERIEBANK is to a state banking retirement of William of Clearfield holding company formed charter Falger established 1865 1934 1984 2005 2006 2008 200
Slide 7: ERIEBANK, a division of CNB Bank, was created de novo in 2005
ERIEBANK, a division of CNB Bank, was created de novo in 2005 At June 30, 2014: Seven branches $396 million in loans $603 million in deposits 7
Slide 8: Expansion into Ohio
Expansion into Ohio • The acquisition of FC Banc Corp., which closed in the fourth quarter of 2013, expanded CNB’s geographic footprint into Central Ohio with meaningful size and scale – Entry into 5 new markets, similar to those that CNB currently serves, with dominant market share position – $360
Slide 9: CNB's Experienced Management Team
CNB’s Experienced Management Team Years at Years in Executive Title CCNE Industry Joseph B. Bower Jr. President & Chief Executive Officer 17 21 Richard L. Greslick Jr. EVP / Chief Operating Officer & Secretary 16 16 Joseph E. Dell Jr. SVP / Chief Lending Officer 1 30 Mark D. Breakey EVP / Chief Cred
Slide 10: CNB Stock Price Performance
CNB Stock Price Performance Since its follow-on offering in 2010, CNB has outperformed the NASDAQ Bank Index 10 Source: SNL Financial. Price change from 6/14/10 to 7/15/14
Slide 11: Strong Organic Loan and Deposit Growth
Strong Organic Loan and Deposit Growth Strong organic loan and deposit growth Total Loans 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 The Bank strives to be more customer- d
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio 0 0 0 0 12/31/10 6/30/14 C&I 32.4% C&I Consumer 32.2% 7.6% Consumer 5.3% Residential Commercial Mortgage Commercial Residential Real Estate 33.2% Real Estate Mortgage 26.8% 26.1% 36.4% 0.00 0 $795 million 0 $1.3 billion 0 6.43% yield 5.31% yield 12
Slide 13: Attractive Deposit Mix
Attractive Deposit Mix 0 0 0 0 12/31/10 6/30/14 Retail CDs Retail CDs 17.5% Jumbo CDs 6.2% 14.2% Non- Jumbo CDs interest 4.6% Bearing 12.1% MMDA & Savings Non- 77.0% interest Bearing MMDA & 12.2% Savings 56.1% 0.00 0 0.00 0 $1.2 billion $1.9 billion 1.42% cost of deposits 0.52% cost of deposits 13
Slide 14: Deposit Market Share
Deposit Market Share CNB Growth Market Growth CNB Total CNB Deposit Year 5-Year Deposits in # of Deposits Market over CAGR Market Year over 5-Year Market Rank Branches ($000) Share (%) Year (%) (%) ($000) Year (%) CAGR (%) Clearfield, PA 1 11 449,038 33.96 3.26 2.52 1,322,107 0.06 0.19 Erie, PA 5 4
Slide 15: Improved Profitability
Improved Profitability 0 0 0 0 Net Income 5-Year ROAA CAGR +27.7% $17,136 1.00 1.00 1.01 $16,679 $15,104 0.87 0.88 0.79 $11,316 $10,783 0.55 $8,512 $5,235 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y* 2014 YTD 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014 YTD 0 0 0 0 0 0 00 Diluted EPS 5-Year Efficiency Ratio CAG
Slide 16: Stable Net Interest Margin
Stable Net Interest Margin 0 0 8.00 6.74 7.00 5.86 6.00 5.22 4.80 5.00 4.35 4.15 4.40 4.00 4.33 3.79 3.00 4.00 3.65 3.59 3.49 3.47 2.00 2.64 1.00 2.07 1.78 1.44 1.08 0.79 0.71 0.00 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y 2014 YTD Net Interest Margin Yield on Interest Earning Assets Cost of Interest Bear
Slide 17: Superior Asset Quality
Superior Asset Quality 0 0 0 0 NPAs/Assets Allowance for Loan Losses/ Gross Loans 1.17 1.48 1.51 1.09 1.37 1.35 1.33 1.29 1.25 0.93 0.85 0.62 0.62 0.42 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y Jun-14 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y Jun-14 0 0 0 0 0 0 0 0 NCOs/Average Loans Texas Ratio 0.56 0.55 0.49
Slide 18: Strong Capital Levels
Strong Capital Levels 0 0 0 0 Tangible Common Tier 1 Risk Based Ratio Equity/Tangible Assets* 14.13 13.89 14.03 12.51 12.83 7.61 7.63 7.05 6.87 10.80 10.70 6.34 5.12 5.08 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y Jun-14 2008Y 2009Y 2010Y 2011Y 2012Y 2013Y Jun-14 0 00 0 0 0 0 0 Leverage Ratio Total Risk Ba
Slide 19: CNB's Growth Strategy
CNB’s Growth Strategy Organic / De Novo Growth Strategy Acquisition Strategy FCBank market provides for organic M&A is not a priority in our growth growth through new offices and strategy; however, we will remain additional lenders opportunistic and would consider a transaction that would: ERIEBANK
Slide 20: Appendix
Appendix FINANCIAL CORPORATION ~~
Slide 21: 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 shareholders’ equity. Tangible asse