CNB Financial Corporation · NASDAQ:CCNE
CNB Financial — Investor Presentation (February 2017)
28 slides from CNB Financial's investor presentation, Feb 15, 2017
Slide 1: Investor Presentation February 2017
Exhibit 99.1 Investor Presentation February 2017
Slide 2: Forward-Looking Statements
Forward-Looking This amended, covered Forward-looking uncertainties, “estimates,” general expected business (x) liabilities affecting and The that statement, 2 loss “could.” their our could forward-looking presentation business, of results by combinations subsidiaries our costs and with cause certai
Slide 3: CNB Financial Corporation Overview
CNB providing Key NASDAQ: ?Network Loan consumer Source: 3 10 Financials full-service production Financial SNL ofdiscount services, “CCNE” 40Financial offices as Overview Corporation offices offices ofloan including December through and through company in Hollidaysburg, company (“CNB”) wealth princi
Slide 4: CNB's Experienced Executive Management Team
CNB’s EXECUTIVE Joseph E. Human of 4 Bank Dell B. Experienced Jr. Resources onBower SEVP Buffalo TITLE /Jr. Chief 34 1Management President 25 34 CCNE Lending Gregory Steven INDUSTRY & R. Chief Officer M. Team Shilling Dixon Executive 3 32 EVP Market Brian /Officer Private Executive W. Wingard 19 Cli
Slide 5: CNB's Five Pillars of Success
CNB’s Look 1. initiatives 2. customer 3. 4. continue 5. President. delivery 5 A Leadership Exceptional Employee Consistent Solid for Vision of to aexperiences to Foundation way products operate incorporate Development in and Customer Approach toLocal say Five asand (CX) CNB yes of Communities Pillar
Slide 6: History
History 1984: Clearfield 1865 1934: ERIEBANK Ohio, 6 1934 with Forms Reorganizes of to CNB 1984 million ais 2016: state FC Financial 2005 in Banc 2010: 1865: banking assets 2006 Corp. Common County 2008 $153 retirement 2016: 2009 million 2010: 2013: Acquisition 2010 of Joseph in 2005: William assets
Slide 7: Growth Model and Strategy
CNB’s lending services market in Buffalo FCBank, support 7 the greater Growth strong through expertise its M&A toLake organic grow Cleveland, growth, isNational), Model the not organically (small growth acquisition a priority both and OH, bring strategy organic in mid-sized market in of the signific
Slide 8: Profitable Growth Over Past Five Years
Profitable 5-Year Total millions) 3.84% $170.9 Source: CNB 8 Assets Financial footprint), 3.40% 5-Year $349.0 SNL $132 Growth ($ Financial Efficiency 4Q11 $334.4 $212 millions) Peer excluding Over 4Q16 Median 9.9% Institutional asPast $1,602 Ratio of $215 CAGR metro December Five 52.97% 7.3% $2,574
Slide 9: Greater Erie and Clearfield Market Expansion
Greater (% 12/31/09 Erie ?Clearfield Cleveland, 2009 * 2016 9 While Source: of34% 21% ?loan The Concentration still 12/31/12 Company 66% 79% portfolio) OH, Erie, growing with PA,data its marketplace ininrecent itsMetropolitan homeacquisition market represents Markets ofofClearfield, 30% LakeofNation
Slide 10: 5-Year Organic Growth
5-Year 2,000,000 1,800,000 Organic 1,600,000 1,400,000 2011Y 2,500,000 Total 1,500,000 2 0 Strong CNB businesses million 10011Y 0 8.3% Loans 17.3% Deposits Bank 2012Y Organic organic CAGR: and 12.2% 1,200,000 5-Year 1,000,000 that 2,000,000 is $10 more 2013Y loan are Loan million CAGR: headquartered
Slide 11: Ever-Changing Competitive Landscape
Ever-Changing 2000 Total 2016 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Source: 11AmeriServ Promistar National Keystone Omega PNC Northwest S&T F.N.B. CNB First Citizens Marquette PNC BB&T Mellon Clearfield Mainline Penn First Sovereign Nittany Reliance 1st KeyCorp Hamlin CBT In
Slide 12: Market Overview
Market Erie smaller-scale The maintains Erie-based Columbus’ employing Mentor than many Buffalo service Sources: 12 Erie is 34,000 ofthe industries. Overview isthe eriepa.com; region’s one major the 4th plastics more diversified employees eastern steel second-largest of largest operations than North
Slide 13: Market Overview: Demographics and Deposit Share
Market Projected 2016-2021 42,057 11.20 PA 6.77 2,061,058 40,958 Columbus, Source: 13 Market Meadville, 1,532 (3.21) 2.02 Overview Deposit Median (0.78) 21 2016 OH 30,513 2,135 (1.52) 896,589 Market PA market 2016-2021 (0.05) Projected 61,131 2(4.49) 45,590 130,303 46.98 952,262 share 357,299 0.34 (
Slide 14: ERIEBANK, A Division of CNB Bank
ERIEBANK, At One market institutions; $671 14 December loan million extension production and in a31, division loans Known 2016: of ERIEBANK office and Ten of for $731 CNB in mid-sized branches Ashtabula, million Bank, franchise commercial was inOhio deposits; Demographically created Entered and de o
Slide 15: FCBank: Successful Expansion into Ohio
Successful The – opportunity of 15$368 Loan FCBank acquisition million growth Expansion to forFirst of in both ofloans $75.2 FC Federal organic into Banc and million, Ohio Community $364 Corp. and or strategic million in25.7%, 2013 Bank ingrowth expanded since deposits of Dover, December going CNB’s
Slide 16: Building CNB Infrastructure for Future Growth
Building CNB rapid As facility – With 16A CNB Upgraded Developed abuilding result, these increase has added allows Infrastructure experienced investments, CNB its project several staff, in CNB core assets made which processing was to career-based significant house through to numerous CNB completed S
Slide 17: Customer-Efficient, Cost-Effective Delivery of CNB's Offices
Customer-Efficient, CNB’s Offices CNB to-date 17 recently office services are staffed network completed to its with Cost-Effective customers has a an well-trained evolved upgradeto Retail of more team itsDelivery core customer-friendly thatprocessing can handlesystem, allstores of a along customer’s
Slide 18: Financial Information
Financial Information
Slide 19: Diversified Loan Portfolio
Diversified C&I 12/31/10 15% $791 Non-Owner12/31/16 21% 6.43% Occupied Owner- 7% 6% Construction 1-4 $1.9 4.69% 19 Other Farm Family billion Non-Owner C&I million yield 1% CRE 10% 34% 35% Loan on Occupied 3%Multifamily Consumer loans Portfolio 28%15% Occupied CRE &5% 10%CRE Other 10%
Slide 20: Attractive Deposit Mix
Attractive 12/31/10 31.8% CDs Non- Savings 56.1% Bearing $1.2 14.4% 1.42% 20 billion MMDA CDs 12.1% cost Bearing 12/31/16 Deposit of $2.0 11.5% & 0.80% interest billion MixcostSavings of interest-bearing Non-MMDA deposits & 74.1%interest-bearing interest deposits
Slide 21: Available-for-Sale Investment Portfolio
Available-for-Sale 12/31/14 0% OtherCorporate 9% Municipals 12/31/16 U.S. 1% Other Total 21 3% Corporate Gov’t Portfolio U.S. 26% 32%3% $686 $501 Gov’t Investment million Agencies Wrapped Tax-Equivalent Portfolio Agencies Wrapped Resi/Multi-23% 28%Book Resi/Multi-Family Yield 2.74% 2.70% Family Effe
Slide 22: Deposit Market Share
Deposit CNB (%) Erie, 139,712 123,487 (3.10) 856,851 Indiana, Total Source: 22 ($000) PA 40 Growth 0.92 SNL Market PA 2.75 17.13 1.54 2,026,549 5 5Year 810,773 9446,117 Financial. 5.35 4.16 Market 11.98 4,462 Share (%) 5.62 Morrow, 2.47 1.06 (7.67) CAGR 9.30 Growth 0.19 5,082,126 Deposit 1.55 720,82
Slide 23: Strong Profitability
Net Strong 0 0 0Income CAGR 1.07 Profitability +6.3%* 5-Year ROAA 1.00 1.00 0.99 $23,074 $22,197 0.88 2011Y 0 0 0.85 2012Y $20,540 2013Y$17,136 2014Y$16,679 2015Y $15,104 2016Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 0 5-Year Diluted 0EPS 0 CAGR ROAE +2.9% 2011Y * thousand$1.60 processing 23 (pre-tax) N
Slide 24: Stable Net Interest Margin
Stable0.71 5.00 5.23 6.00 4.42 3.82 4.00 4.15 3.00 1.00 1.78 2.00 3.47 0.79 1.08 2010Y 0.00 24 4.84 4.43 3.73 3.65 1.44 Net 2011Y 4.32 3.78 3.59 0.71 Interest 2012Y 4.28Margin 3.49 0.69 2013Y 2014Y 2015Y 2016Y Net Interest Margin Yield on Interest-Earning Assets Cost of Interest Bearing Liabilities
Slide 25: Superior Asset Quality
NPAs/Assets Superior 0 0 1.51AssetAllowance 1.48 0.85 Quality for Loan Losses/ 1.09 Gross Loans 1.25 0.61 0.58 1.28 0.64 0.87 1.06 0.47 2011Y 0 Texas2012Y Ratio 2013Y 2014Y 2015Y 2016Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 0 NCOs/Average (In bps14.25 Loans 16.90 as % of Total) 18.85 14.00 0.45 11.90 0
Slide 26: Strong Capital Levels
00 Strong Capital Levels 0 Tangible Equity/Tangible 0 14.03 13.89 Common Assets* 13.06 Tier 1 Risk-Based Ratio 7.61 7.32 6.72 10.337.64 12.51 12.14 6.34 7.63 2011Y 0 2012Y Leverage 8.73 0 015.28 2013Y 2014Y 2015Y 2016Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 8.22 8.39 8.06 13.8314.30Ratio 13.72 15.14 To
Slide 27: Non-GAAP Financial Reconciliation
Non-GAAP the from measures measure companies reconciliation ($ Total — Tangible Outstanding 27 in — 4,583 balance thousands) the Assets Shareholders’ 4,583 used calculation common Common 3,403 provide use of Financial 3,403 $1,413,511 12,237,261 to of goodwill the 2,395 assess 2010 these information
Slide 28: Peer Institutions List
Total PeersName CNB Institution $1 to Assets $5 billion City State TrustCo Meridian 4,290,025 Oritani Warsaw Louisville Corporation HarborOne Belmont Institution TotalBarFinancial Farmers WV Frankfort Inc. PA 1,338,189 1,242,292 Honesdale NJ Source: excluding 28 Mid NY Bank MA WesternBancorp, SNLWar
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