Cnb Financial Corporation · NASDAQ:CCNE
Cnb Financial — Investor Presentation (November 2023)
26 slides from Cnb Financial's investor presentation, Nov 15, 2023
Slide 1: Discussion Materials: Investor Presentation November 2023
84 87 90 164 30 52 230 228 229 Discussion Materials Investor Presentation November 2023 164 30 52 164 30 52 164 30 52 Exhibit 99.1
Slide 2: Certain Important Information: 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 CNB’s fina
Slide 3: CNB Financial Corporation
CNB Financial Corporation (1) Based on 20,897,806 share count reported as of October 31, 2023 in September 30, 2023 Form 10-Q and the November 10, 2023 closing stock price ($19.94) (2) Return on average tangible common equity is a non-GAAP financial measure - see Appendix for reconciliation NY PA OH
Slide 4: Investment Accretion and Returns
Investment Accretion and Returns The Great Recession 2008 COVID-19 Pandemic 2020 Return on Average tangible common equity(2) (1) Return on average tangible common equity and tangible book value per share are non-GAAP financial measures – see Appendix for reconciliations; Average equity includes both
Slide 5: Regional divisions and franchise markets
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 in August 2005 Comprised of two premium franchises Legacy market with 8 full-service offices
Slide 6: Franchise Milestones
FRANCHISE Milestones 2020 Acquisition of Bank of Akron 2013 2010 2005 1934 Reorganized Through a Stock Offering to Existing Depositors 1984 1865 County National Bank of Clearfield Established 2015 2016 2021 CNB Financial Corporation Holding Company Organized ERIEBANK Formed Common Equity Capital Rai
Slide 7: Asset Growth and Key Capital Activities
Common Equity Capital Raise of $34.5M Acquisition of FC Banc Corp. in Bucyrus, OH Adding $360M in Assets $50M Sub-Debt Raise Acquisition of Lake National Bank Bank on Buffalo Is Formed Acquisition of Bank of Akron Preferred Equity Capital Raise of $60.4M $85M Sub- Debt Raise Ridge View Bank Is Forme
Slide 8: Wealth & Asset Management Financial Trends
Wealth & asset management financial trends AUM CAGR = 12.0% Revenue CAGR = 11.8% Long-term growth and increased revenue based on leveraging expansion of footprint into higher growth markets As of September 30, 2023, AUM include approximately $266.4 million in on balance sheet money market deposits C
Slide 9: Consolidated Capital Position
Consolidated Capital Position (1) The capital ratios as of September 30, 2023. (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-
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 3.87% as of September 30, 2023 Dividend payout ratio of 27% as of the nine months end
Slide 11: Deposit growth and composition
Long-term growth in deposits driven primarily by growth in checking and savings account relationships Approximately 21.1% CAGR from December 31, 2019, in Non-Int. Deposits Demand deposits strengthened by C&I and Treasury Management customer relationships Time deposits represented 11.1% of total depo
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 for CNB Bank of approximately $33 thousand Substantial liquidity, which is well in excess of uni
Slide 13: Securities Portfolio
Investment portfolio comprised of 50.8% available-for-sale and 49.2% held-to-maturity as of September 30, 2023, as part of a strategy to mitigate volatility in tangible common equity Overall low credit risk profile with 80.5% of the portfolio comprised of government or government sponsored securitie
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 $250.7 million, or 7.7% (annualized), from December 31, 2022, to September 30, 2023 CNB views commercial lending as its competitiv
Slide 15: Additional Loan Portfolio Detail
Additional Loan portfolio Detail Well diversified C&I portfolio with no single industry greater than 23% 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 segment greater than 22% of the
Slide 16: Additional Loan Detail – Commercial Office
Additional Loan Detail – Commercial Office Commercial Office Loan Portfolio Commercial office loans outstanding consisted of 120 loans, totaling $115.7 million, or 2.6%, of total loans outstanding Nonaccrual commercial office loans (three customer relationships) totaled $1.1 million, or 1.0% of tota
Slide 17: Conservative Credit Culture
Conservative credit culture 9/30/23 nonaccrual loans by type Historical asset quality Historical NPAs/Assets & Ncos/Loans (1) NCOs-Bank Only excludes Holiday Financial Services Note: NPAs is an abbreviation for non-performing assets; NCOs is an abbreviation for net charge-offs (1) 12/31/2019 12/31/2
Slide 18: Credit Quality
Credit quality NONPERFORMING ASSETS TO TOTAL ASSETS NET CHARGE-OFFS TO LOANS ALLOWANCE FOR CREDIT LOSSES to NONACCRUAL LOANS(1) (1) Prior to January 1, 2020, the Corporation calculated the allowance for loan losses using the probable incurred methodology.
Slide 19: Financial Trends
(1) Earnings per share includes merger costs in 2019 and merger costs, FHLB prepayment penalties and branch closure costs in 2020. Financial trends Total Assets ($M) Total Gross Loans ($M) Total Deposits ($M) Diluted Earnings per share(1) CAGR = 11.9% CAGR = 13.4% CAGR = 13.6% CAGR = 0.1%
Slide 20: Earnings Power
(1) Return on average assets, return on average equity, and efficiency ratio include merger costs in 2019 and merger costs, FHLB prepayment penalties and branch closure costs in 2020. (2) Net interest margin and adjusted efficiency ratio are non-GAAP financial measures – see Appendix for reconciliat
Slide 21: Appendix
Appendix
Slide 22: 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 23: Non-GAAP Reconciliation
Non-gaap reconciliation (1) Annualized
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION y 31, Dolor in thousands except per shore data 2019 2020 2021 2022 September 30, 2023 aleulation of efficiency ratio: Non-interest expense $87,508 $107,326 $116,433 $137,622 $106,892 Non-interest income 25,975 28,059 33,434 34,766 Net interest income 116,198 _134,711___159,78
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION As of December 31, sof September30, 203 20M mois 20162720 201920202021 202 2023 Total Common Equity St69n1 $188,548 $201,913 $211,784 $243,910 $262,830 $304,966 $358,352 $380 $472.97 sua ool and Other Intangibles SU7A94 $27,194 $2798 $38,730 $38,730 «$38,730 «$38,730 Sa3749 S
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ‘As of December 31, As of September 30, Dollars in thousands, except per share data 2019 2020 2021 2022 2023 Total stockholder’s equity (GAAP) $304,966 $416,137 $442,847 $530,762 $549,212 LESS: preferred equity = 57,785 57,785 57,785 87,785 Common equity 304,966 «358,352 385,
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