EX-99.1 2 d564597dex991.htm EX-99.1

Annual Shareholder Meeting April 17, 2018 Exhibit 99.1

2 2017 Earnings and Earnings Metrics The table below provides a reconciliation of CNB Financial Corporation’s annual earnings and earnings metrics under U.S. generally accepted accounting principles (U.S. GAAP) to the comparative results excluding the impact of the revaluation of the deferred tax asset in the fourth quarter of 2017 (dollars in thousands). 2 Twelve Months Ended December 31, 2017 2016 % Change Net income, US GAAP $23,860 $20,540 16.2% Additional tax provision resulting from change in tax rate 3,009 NA Net income, excluding effect of change in tax rate $20,540 Diluted earnings per share, US GAAP $ 1.57 $ 1.42 10.6% Effect of change in tax rate 0.20 NA Diluted earnings per share, excluding effect of change in tax rate 24.6% Return on average assets, US GAAP 0.89% 0.85% 4.7% Effect of change in tax rate 0.11% NA Return on average assets, excluding effect of change in tax rate 1.00% 0.85% 17.6% Return on average equity, US GAAP 9.97% 9.69% 2.9% Effect of change in tax rate 1.26% NA Return on average equity, excluding effect of change in tax rate 11.23% 9.69% 15.9% 30.8% $ 1.77 $ 1.42 $26,869

3 Stable Net Interest Margin 3

4 Strong Capital Levels Tangible Common Equity/Tangible Assets Tier 1 Risk-Based Ratio Leverage Ratio Total Risk-Based Ratio 4

5 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 after retirement of William Falger 2010: Common Equity raise of $34.5 million 2013: Acquisition of FC Banc Corp. headquartered in Bucyrus, Ohio, with $360 million in assets 2015: 150 th Anniversary Celebration 2016: Acquisition of Lake National Bank headquartered in Mentor, Ohio, with $153 million in assets Bank on Buffalo is formed 2016: Subordinated Debt raise of $50 million 2017: Common equity raise of $20 million 5 1865 1934 1984 2005 2006 2010 2013 2015 2016 2017

6 Strategic Principles The Board and management identified three strategic principles that will result in CNB’s ongoing ability to Produce Significant Rewards. 1. Be the Source of Exceptional Experiences 2. Foster an Environment of Leadership 3. Position for Long-Term Growth 6

7 Be the Source of Exceptional Experiences 7 Financial products and services tend to be commodities until we provide a caring level of service and assistance that transforms them into individual solutions for life-long customer needs. Our vision is to find ways to accomplish this goal and say yes when possible within our risk/reward framework. Our employees are challenged everyday to provide this level of support. Therefore, CNB consistently strives for a positive work environment for all employees. Customer Experience – In order to differentiate from the competition, CNB must provide consistently exceptional customer service by a highly competent team which in turn will lead to positive customer experiences (CX). A critical component of these experiences is the continued training and development and empowerment of staff. Employee Experience – CNB is committed to creating a culture that promotes independent thinking and fresh ideas. A complete environment of inclusion is extremely critical to our mission. Going beyond employee satisfaction, CNB strives to achieve employee advocacy and pride.

8 Foster an Environment of Leadership Our purpose goes well beyond acting as merchants of financial products and services to providing leadership for our industry and communities in which our employees and customers reside and operate. Such leadership is manifested in activities, expertise, and contributions of time and resources. Every member of every team is encouraged to share their expertise and ideas that will improve the way we do business. Leadership in Local Communities – A differentiating factor is CNB’s level of investment and leadership in local communities; CNB Bank, ERIEBANK, FCBank and BankOnBuffalo will develop key community initiatives to incorporate into the annual budget along with leadership and employee assignments. Leadership in our Industry – We support and encourage our experienced staff to not only join financial services organizations and partners, but to strive for leadership roles. Each leadership opportunity sets CNB apart from its competitors. Leadership within our Organization – Each employee of CNB has an area of expertise and the opportunity to make a difference. We encourage progressive thinking from every employee to share their ideas and recommendations to continually improve the way we do business. Community Banking at every level – Being a community bank is very important to our culture and our mission. Our approach in maintaining this model is to have regional presidents with the authority to make decisions integral to their market’s success while maintaining the CNB culture. We will continue to operate as CNB Bank, ERIEBANK, BankOnBuffalo and FCBank with each market having developed its own strategy and marketing plan with a high level of support from CNB. 8

9 Position for Long-Term Growth Our approach to positioning the growth of the company is to invest in markets and locations that provide substantial growth opportunities for each of our lines of business. We must invest in new markets and innovative branding in communities of a size that will provide for our long-term growth objectives. A strong focus on technology is necessary to ensure we are offering desired services and delivery channels in the most efficient manner possible. A Consistent Approach to Growth – Organic growth is a key objective for CNB’s success and is therefore a critical component of our future strategy. We will need to focus on developing our asset funding through growth in core deposits, maximize the potential of our existing branch office network, and continually research new markets/franchises to provide for future expansion. Integration Into Communities – Our active role in community leadership will be a significant contributor to unlocking additional business relationships. Leaders get noticed and we strive to be well known in our communities. We measure this in light of our successful market share position in each of our communities. At the core of our strategy is that we have the products and services that are delivered in a personal manner with ample delivery options available. A Solid Foundation of Technology – Deeply entwined in every aspect of our service model is the need for effective technology. Strategically, we need to be at or ahead of the competition in our delivery of products/functionality. 9

10 Strategic Principles These strategic principles will directly impact our culture and promote activities in support of consistent value creation and enhanced financial performance. In executing these principles, we will become the company we wish to be and perform in a manner that distinguishes us from our competitors. Our clear strategic focus and operational discipline are directed to achieve the outcome of producing significant rewards for our shareholders. The proper balance of risk and return is at the forefront of providing sustainable financial performance. 10

11 CNB Bank On February 24, 2017, CNB expanded its market presence in Central Pennsylvania with a full-service office in Blair County. The new community office is conveniently located in Duncansville, off Plank Road, near Convention Center Boulevard. In June 2017, twenty employees successfully graduated as the inaugural class of the CNB Leadership Institute. Given the growth the Bank has been experiencing, and the additional leadership depth that was needed across the entire organization, in 2015 CNB’s senior leadership team felt that it was the right time to enhance the importance of management succession planning and select the inaugural class from within the organization. In December 2017, the Federal Reserve Bank of Philadelphia announced the appointment of Joseph B. Bower Jr., President and Chief Executive Officer of CNB Bank and CNB Financial Corp., to its Community Depository Institutions Advisory Council (CDIAC). The CDIAC is a 12-member council composed of representatives from commercial banks, thrift institutions and credit unions. 11

12 ERIEBANK, a division of CNB Bank In February 2017, ERIEBANK opened a new community office in Ashtabula, Ohio. The new 4,200 square foot facility represents a significant expansion of the commercial banking services ERIEBANK first began offering to Ashtabula businesses in 2014. In March, 2017, the formation of an Ohio Advisory Board and the appointment of seven inaugural members was announced. The board provides leadership and guidance as ERIEBANK continues to develop its presence in the northeast Ohio region. As a compliment to ERIEBANK’s sponsorship of 8 Great Tuesdays, a free concert series held annually at the Liberty Park Amphitheater in Erie and organized by the Erie Western PA Port Authority, a new initiative named 8 Great Charities was launched in July, 2017. The contest resulted in eight different non-profit organizations receiving a total of $8,000 in donations. In November, 2017 ERIEBANK announced its investment of $2.5 million in the Erie Downtown Equity Fund in support of the Erie Downtown Development Corporation (EDDC). ERIEBANK and the Greater Regional Erie Athletic Team Training Inc. (G.R.E.A.T.T.) together announced that, through a partnership, the former Family First Sports Park will soon begin a $9.1 million renovation of the facility and be named ERIEBANK Sports Park. 12

13 FCBank, a division of CNB Bank The major announcement at FCBank in 2017 was the welcoming of Jenny Saunders as President. Jenny took over leadership of the FCBank team in October 2017. Jenny is a veteran banker with over 30 years of community banking experience. FCBank, a division of CNB Bank, is headquartered in Worthington, Ohio with seven full service offices in the communities of Bucyrus, Shiloh, Cardington, Fredericktown, Worthington, Dublin, and Upper Arlington, plus one loan production office in Lancaster, Ohio FCBank headquarters located in Worthington, Ohio. 13

14 Bank on Buffalo, a division of CNB Bank BankOnBuffalo, a division of CNB Bank, experienced major growth in 2017. The newest bank in the Buffalo area opened its first full- service office within the Electric Tower in downtown Buffalo on February 21, 2017. In April, 2017 the formation of a BankOnBuffalo Advisory Board and the appointment of eleven inaugural members was announced. The local Board will provide leadership and guidance as BankOnBuffalo expands upon its initial entry into the Buffalo market in serving the financial needs of the region’s small to middle market businesses. November 2017 was a month of celebration. On November 2, 2017, the Bank expanded into Buffalo’s Southtowns by opening a full-service community office in Orchard Park. On November 16, 2017, a third branch location opened in Williamsville, New York. 14

15 CNB Financial Corporation March 31, 2018 {dollars in thousands} March 31, 2018 December 31, 2017 Total Assets $2,908,883 $2,768,773 Loans $2,276,124 $2,145,959 Deposits $2,210,055 $2,167,815 Quarter ended March 31, 2018 2017 Net interest income $24,100 $21,202 Net income $ 7,097 $ 6,480 Earnings per share $ 0.46 $ 0.43 15

Annual Shareholder Meeting April 17, 2018