CNB Financial (CCNE) 8-K 2017 Earnings and Earnings Metrics

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