CNB Financial (CCNE) 8-K Highlighted by Continued Strong Organic Loan Growth

Exhibit 99.1

News Release

Contact: Brian W. Wingard Treasurer (814) 765-9621 FOR IMMEDIATE RELEASE

CNB FINANCIAL CORPORATION REPORTS SECOND QUARTER EARNINGSFOR 2017,

HIGHLIGHTED BY CONTINUED STRONG ORGANIC LOAN GROWTH

Clearfield, Pennsylvania – July 19, 2017

CNB Financial Corporation (“CNB”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the second quarter and first six months of 2017. Highlights include the following:

• Net income of $6.7 million, or $0.44 per share, in the second quarter of 2017, compared to net income of $4.1 million, or $0.28 per share, in the second quarter of 2016. CNB recorded realized gains on the sale of available-for-sale securities of $155 thousand and $1.0 million during the three months ended June 30, 2017 and 2016, respectively. CNB recorded a gain on the sale of a branch of $536 thousand in the second quarter of 2017. In addition, CNB recorded prepayment penalties on long-term borrowings, core processing conversion expenses, and merger expenses totaling $3.2 million in the second quarter of 2016.

• Net income of $13.2 million, or $0.87 per share, during the six months ended June 30, 2017, compared to net income of $9.1 million, or $0.63 per share, during the six months ended June 30, 2016. CNB recorded realized gains on the sale of available-for-sale securities of $1.5 million and $1.0 million during the six months ended June 30, 2017 and 2016, respectively. CNB recorded a gain on the sale of a branch of $536 thousand during the six months ended June 30, 2017. In addition, CNB recorded prepayment penalties on long-term borrowings, core processing conversion expenses, and merger expenses totaling $3.3 million during the six months ended June 30, 2016.

• Annualized returns on average assets and equity of 1.00% and 11.28%, respectively, for the six months ended June 30, 2017, compared to 0.79% and 8.68%, respectively, for the six months ended June 30, 2016. The annualized return on average tangible equity was 13.70% and 10.09% during the six months ended June 30, 2017 and 2016, respectively.

• Net interest margin of 3.70% for both the six months ended June 30, 2017 and 2016.

• Loans of $2.02 billion as of June 30, 2017, including loans acquired from Lake National Bank, which closed in July 2016, of $122.3 million, compared to loans of $1.66 billion as of June 30, 2016. Organic loan growth in the first six months of 2017 was $147.3 million.

• Deposits of $2.08 billion as of June 30, 2017, including deposits acquired from Lake National Bank of $139.8 million, compared to deposits of $1.89 billion as of June 30, 2016.

• Book value per share of $15.72 as of June 30, 2017 increased 7.4% compared to book value per share of $14.64 as of December 31, 2016 and tangible book value per share of $13.04 as of June 30, 2017 increased 10.9% compared to tangible book value of $11.76 per share as of December 31, 2016, primarily as a result of CNB’s common stock issuance in the first quarter of 2017.

• Non-performing assets of $21.2 million, or 0.79% of total assets as of June 30, 2017, compared to $16.4 million, or 0.64% of total assets, as of December 31, 2016.

Joseph B. Bower, Jr., President and CEO, stated, “The second quarter net interest income showed solid improvement. We are pleased with the continued growth of loan interest income along with the expansion of our net interest margin when compared to the first quarter of 2017.”

Net Interest Margin

Net interest margin on a fully tax equivalent basis was 3.70% for both the six months ended June 30, 2017 and 2016, despite the inclusion of $1.5 million in interest expense for the six months ended June 30, 2017 from CNB’s $50 million issuance of subordinated debt in the third quarter of 2016 to help support balance sheet growth.

In June 2017, CNB converted short-term borrowings having a maturity of two months or less and interest rates ranging from 1.30% to 1.38% to longer term advances with the Federal Home Loan Bank of Pittsburgh. The aggregate amount of such borrowings was $140 million, with a weighted average maturity of 3.7 years and a weighted average interest rate of 1.87%. Although the effect will be to increase borrowing costs in the near term, management believes the execution of this strategy will result in a more effective duration match with CNB’s loan portfolio and appropriately mitigate the interest rate risk associated with maintaining short-term borrowings in a rising interest rate environment.

Asset Quality

During the three and six months ended June 30, 2017, CNB recorded a provision for loan losses of $1.1 million and $2.2 million, as compared to a provision for loan losses of $220 thousand and $1.4 million for the three and six months ended June 30, 2016. Net chargeoffs during the three and six months ended June 30, 2017 were $411 thousand and $1.2 million, compared to net chargeoffs of $970 thousand and $2.2 million for the three and six months ended June 30, 2016. CNB Bank net chargeoffs totaled $58 thousand and $655 thousand during the six months ended June 30, 2017 and 2016, or .01% and .08%, respectively, of average CNB Bank loans. Holiday Financial Services Corporation is CNB’s consumer discount company and recorded net chargeoffs totaling $1.2 million and $1.5 million during the six months ended June, 2017 and 2016, respectively.

In the first quarter of 2017, one commercial real estate loan that was impaired at year end 2016 but still on accrual status was placed on nonaccrual status as a result of further deterioration in the financial condition of the borrower. The additional provision for loan losses recorded in 2017 related to this loan was $1.2 million, including $553 thousand in the first quarter and $603 thousand in the second quarter, which was based on the most current financial information available from the borrower as of each period end.

Non-Interest Income

Net realized gains on available-for-sale securities for the six months ended June 30, 2017 were $1.5 million, including $1.4 million on the sale of two structured pooled trust preferred securities. Net realized gains on available-for-sale securities for the six months ended June 30, 2016 were $1.0 million, including $922 thousand on the sale of two structured pooled trust preferred securities.

On May 19, 2017, CNB completed its previously announced sale of the Mt. Hope, Ohio branch to First Federal Community Bank. CNB transferred loans totaling $7.8 million and deposits totaling $7.4 million in conjunction with the sale of the branch and realized a gain of $536 thousand based on the 8% deposit premium paid by First Federal Community Bank.

As a result of CNB’s continued focus on growing its Private Client Solutions division, wealth and asset management revenues increased 21.3% from $1.5 million in the first six months of 2016 to $1.8 million in the first six months of 2017.

Non-Interest Expenses

Total non-interest expenses were $17.8 million and $34.8 million during the three and six months ended June 30, 2017, compared to $18.8 million and $33.6 million during the three and six months ended June 30, 2016. Included in non-interest expenses in 2016 were $3.3 million of non-recurring items, with merger related expenses of $215 thousand, costs associated with our core processing system upgrade of $1.6 million, and a prepayment penalty associated with the early payoff of long-term borrowings of $1.5 million.

Salaries and benefits expense increased $2.5 million, or 16.3%, during the six months ended June 30, 2017 compared to the six months ended June 30, 2016. As of June 30, 2017, CNB had 493 full-time equivalent staff, compared to 453 full-time equivalent staff as of June 30, 2016. The staff added during this period included both customer-facing personnel, such as business development and wealth management officers, as well as support department personnel. In addition, CNB retained 20 employees in connection with its acquisition of Lake National Bank in the third quarter of 2016. Occupancy expenses increased $1.1 million, or 29.0%, during the six months ended June 30, 2017 compared to the six months ended June 30, 2016. Holiday Financial Services Corporation incurred non-recurring occupancy expenses totaling $141 thousand in 2017 as a result of the closure of two of its offices. The remainder of the increase in occupancy expenses is attributable to the two locations acquired from Lake National Bank in Mentor, Ohio, as well as locations in Worthington, Ohio; Ashtabula, Ohio; Blair County, Pennsylvania; and Buffalo, New York that have been opened since the end of the second quarter of 2016.

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated assets of approximately $2.7 billion that conducts business primarily through CNB Bank, CNB Financial Corporation’s principal subsidiary. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, one loan production office, 33 full-service offices in Pennsylvania and northeast Ohio, including ERIEBANK, a division of CNB Bank, 9 full-service offices in central Ohio conducting business as FCBank, a division of CNB Bank, and a full-service office in Buffalo, New York conducting business as Bank on Buffalo, a division of CNB Bank. More information about CNB and CNB Bank may be found on the Internet atwww.cnbbank.bank.

Forward-Looking Statements

This press release 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 financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change

based on various factors (some of which are beyond CNB’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” CNB’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in CNB’s annual and quarterly reports.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. CNB undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.

Financial Tables

The following tables supplement the financial highlights described previously for CNB Financial Corporation.

	(unaudited)							(unaudited)
	Three Months Ended							Six Months Ended
	June 30,							June 30,
(Dollars in thousands, except share and per share data)
	2017		2016		% change			2017		2016		% change
Income Statement
Interest income	$	27,003	$	22,473		20.2	%	$	52,107	$	44,539		17.0	%
Interest expense		4,014		3,070		30.7	%		7,916		6,194		27.8	%
Net interest income		22,989		19,403		18.5	%		44,191		38,345		15.2	%
Provision for loan losses		1,134		220		415.5	%		2,150		1,416		51.8	%
Net interest income after provision for loan losses		21,855		19,183		13.9	%		42,041		36,929		13.8	%
Non-interest income
Service charges on deposit accounts		1,165		1,006		15.8	%		2,255		1,987		13.5	%
Other service charges and fees		559		624		-10.4	%		1,088		1,184		-8.1	%
Wealth and asset management fees		952		780		22.1	%		1,823		1,503		21.3	%
Net realized gains on available-for-sale securities		155		1,005		-84.6	%		1,538		1,005		53.0	%
Net realized and unrealized gains on trading securities		127		64		98.4	%		315		30		950.0	%
Mortgage banking		247		147		68.0	%		431		318		35.5	%
Bank owned life insurance		364		263		38.4	%		716		526		36.1	%
Card processing and interchange income		970		787		23.3	%		1,848		1,622		13.9	%
Gain on sale of branch		536		—		NA			536		—		NA
Other		14		142		-90.1	%		312		420		-25.7	%
Total non-interest income		5,089		4,818		5.6	%		10,862		8,595		26.4	%
Non-interest expenses
Salaries and benefits		8,902		7,908		12.6	%		17,907		15,399		16.3	%
Net occupancy expense of premises		2,257		1,881		20.0	%		4,797		3,720		29.0	%
FDIC insurance premiums		370		340		8.8	%		574		662		-13.3	%
Core Deposit Intangible amortization		331		217		52.5	%		662		432		53.2	%
Prepayment penalties - long-term borrowings		—		1,506		NA			—		1,506		NA
Core processing conversion costs		—		1,488		NA			—		1,555		NA
Merger costs		—		173		NA			—		215		NA
Card processing and interchange expenses		614		448		37.1	%		1,036		1,082		-4.3	%
Other		5,323		4,791		11.1	%		9,855		8,995		9.6	%
Total non-interest expenses		17,797		18,752		-5.1	%		34,831		33,566		3.8	%

Income before income taxes		9,147			5,249		74.3	%		18,072			11,958		51.1	%
Income tax expense		2,464			1,184		108.1	%		4,909			2,874		70.8	%
Net income	$	6,683		$	4,065		64.4	%	$	13,163		$	9,084		44.9	%
Average diluted shares outstanding		15,206,708			14,367,812					15,051,045			14,362,273
Diluted earnings per share	$	0.44		$	0.28		57.1	%	$	0.87		$	0.63		38.1	%
Cash dividends per share	$	0.165		$	0.165		0.0	%	$	0.33		$	0.33		0.0	%
Payout ratio		38	%		59	%				38	%		52	%
Average Balances
Loans, net of unearned income	$	1,993,287		$	1,635,204				$	1,951,035		$	1,615,493
Total earning assets		2,488,622			2,186,049					2,454,390			2,174,251
Total assets		2,659,761			2,324,787					2,625,727			2,312,323
Total deposits		2,057,165			1,898,836					2,027,605			1,877,085
Shareholders’ equity		239,347			210,649					233,445			209,373
Tangible shareholders’ equity (*)		198,208			181,399					192,141			180,011
Performance Ratios (quarterly information annualized)
Return on average assets		1.01	%		0.70	%				1.00	%		0.79	%
Return on average equity		11.17	%		7.72	%				11.28	%		8.68	%
Return on average tangible equity (*)		13.49	%		8.96	%				13.70	%		10.09	%
Net interest margin (FTE)		3.73	%		3.73	%				3.70	%		3.70	%
Loan Charge-Offs
Net loan charge-offs	$	411		$	970				$	1,211		$	2,165
Net loan charge-offs / average loans		0.08	%		0.24	%				0.12	%		0.27	%

The following is a non-GAAP disclosure of pre-tax net income excluding the effects of net realized gains on the sale of available for sale securities, the gain on the sale of a branch, and one-time expenses including prepayment penalties on long-term borrowings, core processing conversion costs, and merger costs:

	(unaudited)									(unaudited)
	Three Months Ended									Six Months Ended
	June 30,									June 30,
	(Dollars in thousands)
										(unaudited)
	2017			2016			% change			2017			2016			% change
Pre-tax net income, GAAP basis	$	9,147		$	5,249			74.3	%	$	18,072		$	11,958			51.1	%
Net realized gains on available-for-sale securities		(155	)		(1,005	)		-84.6	%		(1,538	)		(1,005	)		53.0	%
Gain on sale of branch		(536	)		—			NA			(536	)		—			NA
Prepayment penalties - long-term borrowings		—			1,506			NA			—			1,506			NA
Core processing conversion costs		—			1,488			NA			—			1,555			NA
Merger costs		—			173			NA			—			215			NA
Pre-tax net income, non-GAAP	$	8,456		$	7,411			14.1	%	$	15,998		$	14,229			12.4	%

	(unaudited)						(unaudited)
	June 30			December 31			June 30			% change versus
	2017			2016			2016			12/31/16			6/30/16
	(Dollars in thousands, except share and per share data)
Ending Balance Sheet
Loans, net of unearned income	$	2,020,829		$	1,873,536		$	1,655,844			7.9	%		22.0	%
Loans held for sale		1,652			7,528			863			-78.1	%		91.4	%
Investment securities		458,816			500,693			525,439			-8.4	%		-12.7	%
FHLB and other equity interests		23,298			19,186			16,023			21.4	%		45.4	%
Other earning assets		1,756			2,246			2,992			-21.8	%		-41.3	%
Total earning assets		2,506,351			2,403,189			2,201,161			4.3	%		13.9	%
Allowance for loan losses		(17,269	)		(16,330	)		(15,988	)		5.8	%		8.0	%
Goodwill		38,730			38,730			27,194			0.0	%		42.4	%
Core deposit intangible		2,192			2,854			1,964			-23.2	%		11.6	%
Other assets		148,905			145,378			122,061			2.4	%		22.0	%
Total assets	$	2,678,909		$	2,573,821		$	2,336,392			4.1	%		14.7	%
Non interest-bearing deposits	$	313,871		$	289,922		$	253,352			8.3	%		23.9	%
Interest-bearing deposits		1,762,918			1,727,600			1,637,243			2.0	%		7.7	%
Total deposits		2,076,789			2,017,522			1,890,595			2.9	%		9.8	%
Borrowings		262,940			237,004			185,653			10.9	%		41.6	%
Subordinated debt		70,620			70,620			20,620			0.0	%		242.5	%
Deposits held for sale		—			6,456			—			NA			NA
Other liabilities		28,268			30,435			28,586			-7.1	%		-1.1	%
Common stock		—			—			—			NA			NA
Additional paid in capital		96,490			77,737			77,337			24.1	%		24.8	%
Retained earnings		142,409			134,295			127,614			6.0	%		11.6	%
Treasury stock		(541	)		(127	)		(205	)		326.0	%		163.9	%
Accumulated other comprehensive income (loss)		1,934			(121	)		6,192			NA			-68.8	%
Total shareholders’ equity		240,292			211,784			210,938			13.5	%		13.9	%
Total liabilities and shareholders’ equity	$	2,678,909		$	2,573,821		$	2,336,392			4.1	%		14.7	%
Ending shares outstanding		15,285,506			14,467,815			14,462,007
Book value per share	$	15.72		$	14.64		$	14.59
Tangible book value per share (*)	$	13.04		$	11.76		$	12.57
Capital Ratios
Tangible common equity / tangible assets (*)		7.56	%		6.72	%		7.88	%
Tier 1 leverage ratio		8.45	%		7.87	%		8.71	%
Common equity tier 1 ratio		10.27	%		9.28	%		10.78	%
Tier 1 risk based ratio		11.29	%		10.33	%		11.98	%
Total risk based ratio		14.71	%		13.83	%		12.93	%
Asset Quality
Non-accrual loans	$	19,995		$	15,329		$	11,998
Loans 90+ days past due and accruing		314			10			162
Total non-performing loans		20,309			15,339			12,160
Other real estate owned		889			1,015			516
Total non-performing assets	$	21,198		$	16,354		$	12,676
Loans modified in a troubled debt restructuring (TDR):

Performing TDR loans	$	8,253		$	8,710		$	8,903
Non-performing TDR loans **		2,935			3,121			5,183
Total TDR loans	$	11,188		$	11,831		$	14,086
Non-performing assets / Loans + OREO		1.05	%		0.87	%		0.77	%
Non-performing assets / Total assets		0.79	%		0.64	%		0.54	%
Allowance for loan losses / Loans		0.85	%		0.87	%		0.97	%

* - 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 other intangible assets from the calculation of stockholders’ equity. Tangible assets is calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets. Return on average tangible equity is calculated by dividing annualized net income by average tangible assets. Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding. CNB believes that these non-GAAP financial measures provide information to investors that is useful in understanding its financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

** - Nonperforming TDR loans are also included in the balance of non-accrual loans in the previous table.

	(Dollars in thousands, except share and per share data)
	(unaudited)						(unaudited)
	June 30			December 31			June 30
	2017			2016			2016
Shareholders’ equity	$	240,292		$	211,784		$	210,938
Less goodwill		38,730			38,730			27,194
Less core deposit intangible		2,192			2,854			1,964
Tangible common equity	$	199,370		$	170,200		$	181,780
Total assets	$	2,678,909		$	2,573,821		$	2,336,392
Less goodwill		38,730			38,730			27,194
Less core deposit intangible		2,192			2,854			1,964
Tangible assets	$	2,637,987		$	2,532,237		$	2,307,234
Ending shares outstanding		15,285,506			14,467,815			14,462,007
Tangible book value per share	$	13.04		$	11.76		$	12.57
Tangible common equity/Tangible assets		7.56	%		6.72	%		7.88	%