CNB Community Bancorp, Inc. - County National · PDF fileHillsdale, MI 1 CNB Community Bancorp Inc. 5 229,367 53.65 ... Sharon is a member of the MBA Chief Financial Officer Forum,

CNB Community Bancorp, Inc.

Company Profile

Investor Consideration

bank holding company of:

December 2014

Page 2

This presentation contains or incorporates by reference forward-looking statements within the meaning of Section 27A of the

Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended

(the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent

plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning

future events, business plans, objectives, expected operating results and the assumptions upon which those statements are

based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply

future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,”

“will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “is confident that,” and similar

expressions that are intended to identify these forward-looking statements. These forward-looking statements involve risk

and uncertainty and a variety of factors, which are in many instances beyond our control and could cause our actual results

and experiences to differ materially from the anticipated results or other expectations expressed in these forward-looking

statements. We assume no obligation to update or revise forward-looking statements.

Disclaimer

Page 3 Table of Contents

Executive Summary

Company Overview

Corporate Strategy

Financial Highlights

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Corporate Profile

Major Cities

CNB Branches (12)

Key

Lansing

Detroit Kalamazoo Ann

Arbor

Grand Rapids

Traverse City

Headquarters Hillsdale, MI

Established 1934

Assets $472.2 million

Loans, net $354.3 million

Deposits $416.8 million

Consolidated Equity / BV per Share $39.1 million / $19.08

LTM Return on Average Assets 0.88%

LTM Return on Average Equity 10.61%

Cost of Funds 0.25%

Net Interest Margin 3.94%

Efficiency Ratio 70.82%

Loans / Deposits 86.43%

NPAs (excl. TDRs)/Assets 1.35%

Shares Outstanding 2,046,981

CNB Community Bancorp, Inc. (“CNB” or the “Company”) is the bank holding company of Hillsdale

County National Bank (the “Bank”). Headquartered in Hillsdale, MI, the Company offers banking

products and services to the local communities it serves in Hillsdale, Jackson, Calhoun, and Lenawee

counties.

CNB At A Glance CNB Geographic Footprint

Note: Financial data at the bank level as of June 30, 2014 except where

otherwise noted LTM stands for “Last Twelve Months”

Jackson

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CNB Market Share

State of Michigan Primary Markets

CNB is the 19th largest bank headquartered in the State of Michigan

The Company has the top market share in its primary market of Hillsdale, and is the fourth largest bank

in its secondary market of Jackson (but is the largest MI-based community bank)

Note: Deposit information taken from SNL Financial as of June 30, 2014. Michigan total includes all deposits in state of Michigan, including out of

state banks

Rank Institution

# of

Branches

Total

Deposits

($000)

Market

Share

(% )

Michigan

1 Flagstar Bancorp Inc. 106 6,856,166 3.87

2 Chemical Financial Corp. 184 6,003,314 3.39

3 Talmer Bancorp Inc. 54 2,745,817 1.55

4 Mercantile Bank Corp. 54 2,319,847 1.31

5 Independent Bank Corp. 72 1,941,186 1.10

6 Macatawa Bank Corp. 30 1,218,399 0.69

7 Isabella Bank Corporation 27 1,063,128 0.60

8 MBT Financial Corp. 24 1,051,525 0.59

9 Lake Michigan Financial Corp. 5 937,169 0.53

10 Arbor Bancorp Inc. 7 826,604 0.47

11 Mackinac Financial Corp 18 589,664 0.33

12 Level One Bancorp Inc. 8 560,799 0.32

13 First State Financial Corp. 12 539,690 0.31

14 First National Bancshares Inc. 3 536,839 0.30

15 Keweenaw Financial Corporation 10 489,108 0.28

16 Southern Michigan Bancorp Inc. 16 458,086 0.26

17 Crestmark Bancorp Inc. 1 443,723 0.25

18 ChoiceOne Financial Services 13 428,835 0.24

19 CNB Community Bancorp Inc. 12 416,846 0.24

20 Northstar Financial Group Inc. 9 392,925 0.22

Total For Institutions In Michigan 2,840 176,934,749

Rank Institution

# of

Branches

Total

Deposits

($000)

Market

Share

(% )

Hillsdale, MI


2 Flagstar Bancorp Inc. 1 64,822 15.16

3 Fifth Third Bancorp (OH) 1 55,162 12.90

4 Southern Michigan Bancorp Inc. 2 45,014 10.53

5 Century Financial Corp. 1 17,775 4.16

6 Monarch Community Bancorp Inc 1 15,384 3.60

Total For Institutions In Hillsdale 11 427,524

Jackson, MI

1 Flagstar Bancorp Inc. 8 413,663 26.96

2 Comerica Inc. (TX) 10 386,444 25.18

3 FirstMerit Corp. (OH) 7 328,342 21.40


5 Fifth Third Bancorp (OH) 3 79,901 5.21

6 Old National Bancorp (IN) 3 51,095 3.33

7 OSB Community Bank 2 40,366 2.63

8 Farmers State Bank of Munith 2 38,793 2.53

9 Independent Bank Corp. 1 21,070 1.37

10 PNC Financial Services Group (PA) 1 17,023 1.11

Total For Institutions In Jackson 45 1,534,560

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Investment Considerations

19th largest bank headquartered in Michigan with focus on local communities it serves

#1 in deposit market share (greater than 53%) in Hillsdale County and #4 market share in Jackson

County, which has more than 160,000 residents and a median household income of $44,432

Experienced management team and board of directors, with vast knowledge of local markets

The Bank has been a model of consistent positive earnings

Dividend payout has remained consistent year over year and the Company is focused on building

shareholder value and returning a share of profits to the shareholders

Robust core deposit base (92.6% of total deposits) and transaction accounts (46.5% of total deposits) at

the bank are evidence of strong customer relationships in the community

Very low cost of funds – 0.25% as of June 30, 2014

Trust and investment services division augments traditional loan interest income with supplemental

noninterest income and fee revenue generation

Focus on long-term success of its shareholders, customers, and employees

Strong credit quality is heavily tied to the Bank’s conservative underwriting processes


Executive Summary

Company Overview

Corporate Strategy


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Corporate History

On March 19, 1934, roughly fifty courageous and committed business people put up personal monies to invest and capitalize

County National Bank. The initial $60,000 investment has grown to over $39,000,000, truly an entrepreneurial success story

for our free enterprise system. Beyond the growth of the initial investment, CNB's role in promoting commerce and

prosperity to our local communities has been historic, and our past and present shareholders can take pride in their important

role in this story.

In April of 1991, the bank acquired the Hudson office of Standard Federal Bank. Four more offices were acquired from

Republic Bank in 1997 in Litchfield, Somerset Center, Hanover, and Spring Arbor. Growth continued in 1999 with the

acquisition of the Homer office of Citizens Bank.

In 2001, the decision was made to bring the community banking concept to the Jackson market. In April of 2001, the CNB

office was opened on Cortland Street in downtown Jackson in refurbished space that had been part of the Jacobson's Store

for the Home. Following the positive reception and success of the downtown office, construction of a second Jackson office

on Wisner Street was completed in 2004. Located in the heart of Jackson's major retail area, the Wisner Street office

provides a full-range of banking services.

In June of 2006, County National Bank's Hudson office moved to the new Market House Plaza on Railroad Street. The

shopping plaza houses several businesses, utilizing the one-stop shopping approach. This brand-new beautiful banking

facility offers a full complement of products and services including drive-up service, expanded hours, and a convenient

ATM. Then in August of 2007, the bank opened a third Jackson office at a great location in the new Summit Center at the

corner of Horton and Weatherwax Roads. This newest full-service facility boasts beautiful décor including walls adorned

with pictures relating to the nearby Ella Sharp Museum.

County National Bank is proud to serve the communities of South Central Michigan, providing financial products and

services in 11 full-service offices and 16 ATMs. Since 1934 CNB has been committed to superior customer service,

technological innovation, and a tradition of community banking.

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Branch Network

Howell St. - Hillsdale

Cortland Ave. - Jackson Wisner St. - Jackson Horton Rd. - Jackson

Chicago St. - Jonesville Lewis St. - Hillsdale

Main St. - Homer

Railroad St. - Hudson

Main St. – Spring Arbor

Chicago Rd. – Somerset

Main St. - Hanover

Jonesville St. - Litchfield

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Craig S. Connor – President & Chief Executive Officer

Related Work Experience

Joined CNB in 1993 as the Senior Loan Officer. Prior to CNB, Craig held positions at two other community banks

located in southern Michigan; Litchfield State Savings Bank and Adrian State Bank. He has been active on several

local boards over the course of his career, including the Hillsdale Community Health Center, Hillsdale County Senior

Services Center, Hillsdale Chamber of Commerce, and the Hillsdale Board of Public Utilities. Additionally, he was

elected to the Michigan Bankers Associate (MBA) Board in May of 2012, and participates in several committees.

John R. Waldron – Senior Vice President & Senior Loan Officer


Joined CNB in 2002 as a Commercial Loan Officer. Prior to CNB, John spent 10 years with the Office of the

Comptroller of the Currency (OCC) as a National Bank Examiner specializing in Capital Markets and Asset

Management. In his current position as the Senior Loan Officer, he oversees the Bank’s loan portfolio, loan operations,

policies, and compliance. John is active in the MBA Senior Lender Forum, and locally is involved with the Jackson

Symphony Orchestra, the Ella Sharp Museum, and Jackson Public Schools.

Sharon L. Burns – Vice President & Chief Financial Officer


Joined CNB in 2010 as a 2nd Vice President and controller. Prior to CNB, Sharon spent 4 years with Rehmann Robson

CPAs as a staff associate specializing in financial institution taxation and internal controls, and 6 years with Spring

Arbor University in various capacities. Her current position at CNB is responsible for financial reporting, accounting

and budgeting for the Bank. Sharon is a member of the MBA Chief Financial Officer Forum, and is locally involved in

her church, her children’s school and community organizations in Hillsdale, Jackson and Lenawee counties. She is

currently a board member of the Hillsdale Exchange Club and active with the Hillsdale Community Sauk Theatre.

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Executive Management Team

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Mary P. Marshall – Vice President & Senior Trust Officer


• Joined CNB in 2006 as the Senior Trust Officer. Prior to CNB, Mary’s previous experience includes over eleven

years of pension consultant, retail finance and trust officer experience. She is a Certified Trust Financial Advisor

through the Cannon Financial Institute, a CSA-Certified Senior Advisor, and has a Life and Health Insurance

License. Mary is a former President of the HGCC Women’s Association.

Scott E. Evans – Vice President & Senior Mortgage Officer


• Joined CNB in 2008 as the Senior Mortgage Officer. Prior to CNB, Scott’s previous experience includes 28 years in

banking as a teller, proof operator, branch manager, commercial lender, branch administrator and retail banking

administrator with Bank of Lenawee. He was appointed as the project manager to start a new bank for Pavilion

Bancorp, Bank of Washtenaw, where he was the EVP/COO for that organization. Scott is also a Grassroots contact

banker with the MBA.

Kelly D. Jensen – Vice President & Branch Administrator


• Joined CNB in 2000 as a Branch Officer. Prior to CNB, Kelly’s banking career began in 1976 and he has held a

number of positions in the banking industry. His current position is administrator of the 12 offices with all branch

officers, managers, management trainee staff and facilities under his direct report. He is a member of the MBA

Branch Administrators Forum. Kelly serves as President of the Exchange Club of Jackson, Treasurer for the Together

We Can Make a Difference House, and is a member of the Trinity Wesleyan Church where he leads music ministry.

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Executive Management Team

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Board of Directors John Barrett

• President – Eagle Funeral Homes, Inc.

• Board member since 2010

• Current member of the Hillsdale Elks Lodge #1575, Jonesville Rotary Club, Hillsdale County Community

Foundation Board, and Knights of Columbus

• Former Board member of the Hillsdale County Chamber of Commerce

Craig Connor

• President & CEO – CNB Community Bancorp, Inc. and Hillsdale County National Bank


• Over 35 years of banking experience in southern Michigan, including multiple lending disciplines

• Active on several Hillsdale community boards and with the Michigan Bankers Association

Judy Gabriele

• Director of Development – Hillsdale Community Health Center (HCHC)


• Past President and current member of the Hillsdale Exchange Club, as well as a member of the Hillsdale

College Women Commissioners and the Hillsdale Women’s Club

• Currently serves on the advisory committee for the Hillsdale County Work Force Development and

Technology Center

Joseph Dunigan

• President – Dunigan Brothers, Inc. (Construction)


• Member of the Jackson Catholic Area School Board and Liberty Township Planning Board

• Past President of the Associated Underground Contractors of Michigan and served on the former City Bank

and Trust Board of Directors, Citizens Bank Advisory Board, and Lumen Christi High School Board

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Board of Directors

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Claude Rowley

• President – Rowley Inc. (Construction)


• Served 18 years on the Hudson Schools’ Board of Education and current President of the William G.

Thompson Foundation, the Hudson Foundation, and the Hudson Educational Foundation

John “Jack” Lovinger

• Attorney – Parker, Hayes, & Lovinger, P.C.


• Currently serves on the Board of Key Opportunities

• Previously served on the boards of Hillsdale County United Way, Will Carleton Public School Academy,

Hillsdale County Senior Services Center, and the Elders of the First Presbyterian Church of Hillsdale

Stephen Maddalena

• General Manager – Kentwood Office Furniture


• Director of the Western Golf Association and the Evans Scholarship Fund in Chicago

David Pope

• Chairman – Powers Clothing, Inc.


• Secretary/Treasurer of the Jonesville Business Association, President of the Hillsdale County Community

Foundation Board, and previously served on the Jonesville Community Schools Board of Education

Steven Wells

• President– Wells Equipment Sales, Inc.


• Currently a charter member of the Litchfield Exchange Club, charter Board member of the Hillsdale County

Community Foundation, and member of the Litchfield School Improvement Committee

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Local Community Involvement

CNB’s employees and directors are deeply vested in the communities they reside, often times serving on

boards and committees of community development associations, foundations, and school districts. Below

are a few of the organizations that representatives of CNB have participated in.


Executive Summary

Company Overview

Corporate Strategy


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Str

ateg

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Mission Statement

County National Bank will sustain its deep commitment to the community and to its tradition of excellence in all aspects

of Banking. CNB will continue to provide outstanding customer service and solid financial performance.

The 2014 strategic plan identifies several key priorities for CNB Community Bancorp, Inc. for the upcoming three-year

period. The Capital management process is robust as the Bank balances shareholder expected returns on equity, dividends

paid, and capital needed to fund the many growth opportunities. CNB monitors and maintains appropriate capital levels as a

part of the risk profile of the Bank.

Organic growth of the Bank in its existing primary markets, as well as the adjacent markets, is a priority. CNB plans to grow

Bank assets and also off-balance sheet assets, such as trust and investment assets and sold and serviced loan assets.

Management succession planning for senior and middle management is reviewed regularly and updated annually. CNB is

committed to developing and retaining a talented and professional staff. Annually, CNB allocates a substantial amount for

staff training and development. Each Bank Director has an established educational fund to be used for outside training

and/or industry conferences.

The Bank strives to maintain a high regulatory rating from their regulator, the Office of the Comptroller of Currency

(“OCC”), and works to utilize “best practices” when it comes to enterprise risk management.

It is CNB’s goal to expand existing customer relationships, building the number of accounts each customer has with the

Bank. The Company accomplishes this by providing excellent customer service, word of mouth referrals, and having

competitive products that meet customers’ needs.

CNB has a long range technology plan which is updated annually. Recently, the Bank upgraded all of our ATM’s and just

introduced mobile banking to the online banking customers. CNB continues to place a high priority on cyber security and

safety of customer information.

Strategic Overview


Executive Summary

Company Overview

Corporate Strategy


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Consolidated Income Statement

CNB has a consistent stream of interest and noninterest income that allows for predictable profitability

and a consistent dividend stream to its shareholders

CNB has averaged a 64.8% dividend payout ratio since 2006, with a median of 57.7%

The Company has achieved double digit returns on equity each of the last 3 years and is on pace to hit

that mark again in 2014, effectively managing its growth prospects and shareholder returns

($ in 000s) For the Year Ended December 31,

Year to

Date

Last Twelve

Months

2006 2007 2008 2009 2010 2011 2012 2013 6/30/2014 6/30/2014

Interest income $16,638 $18,871 $17,225 $16,513 $17,057 $17,904 $17,953 $18,096 $9,301 $18,303

Interest expense 4,461 6,113 4,867 3,600 2,480 1,974 1,607 1,391 564 1,218

Net interest income 12,177 12,758 12,358 12,913 14,577 15,930 16,346 16,705 8,737 17,085

Provision for loan losses 270 401 661 1,579 1,945 1,915 1,245 644 385 617

Net interest income after provision 11,907 12,357 11,697 11,334 12,632 14,015 15,101 16,061 8,352 16,468

Noninterest income 3,858 3,844 3,826 5,077 4,257 4,345 5,242 5,275 2,315 4,743

Noninterest expense 11,490 11,786 13,038 12,770 12,775 13,402 15,122 15,712 7,848 15,708

Income before income taxes 4,275 4,415 2,485 3,641 4,114 4,958 5,221 5,624 2,819 5,503

Income taxes 1,413 1,346 954 1,252 1,184 1,523 1,509 1,676 702 1,491

Net income $2,862 $3,069 $1,531 $2,389 $2,930 $3,435 $3,712 $3,948 $2,117 $4,012

Earnings per share $1.40 $1.51 $0.77 $1.20 $1.47 $1.71 $1.84 $1.94 $1.03 $1.96

Dividends per share $0.86 $0.90 $0.91 $1.00 $0.82 $0.84 $0.86 $0.86 $0.50 $0.86

Dividend payout ratio 61.4% 59.6% 118.2% 83.3% 55.8% 49.1% 46.7% 44.3% 48.5% 43.9%

Return on equity 10.2% 10.4% 5.1% 8.1% 9.9% 11.1% 11.3% 11.3% 10.8% 10.3%

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Profitability Metrics

Earnings & Dividends Per Share

Net Interest Margin & Efficiency Ratio*

Net Interest Margin Efficiency Ratio

$1.40 $1.51

$0.77 $1.20

$1.47 $1.71

$1.84 $1.94

$0.86 $0.90 $0.91 $1.00 $0.82 $0.84 $0.86 $0.86

61.4% 59.6%

118.2%

83.3%

55.8%

49.1%46.7% 44.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2006 2007 2008 2009 2010 2011 2012 2013

Earnings Per Share Dividends Per Share Dividend Payout Ratio

Earnings & Dividends Per Share Dividend Payout Ratio

* Note: Net interest margin and efficiency ratio is at the bank level

4.92% 4.74% 4.56% 4.40% 4.73% 4.70% 4.35% 4.03% 3.94%

69.37% 69.37% 69.09% 70.62%67.51%

65.53%69.15% 70.43% 70.82%

40.00%

50.00%

60.00%

70.00%

80.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

2006 2007 2008 2009 2010 2011 2012 2013 YTD

6/30/2014

Net Interest Margin Efficiency Ratio

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Consolidated Balance Sheet

($ in 000s) For the Year Ended December 31,

As of March

31,

As of June

30,

2006 2007 2008 2009 2010 2011 2012 2013 2014 2014

Assets

Cash and due from banks $15,281 $19,518 $17,308 $31,103 $21,270 $33,446 $70,298 $51,127 $76,130 $59,959

Federal funds sold 6,609 12,479 879 322 470 263 440 906 490 489

Securities - Available for sale 19,582 23,952 18,748 25,543 23,878 19,332 35,433 40,285 39,222 39,142

Loans held for sale 1,917 446 553 194 1,316 1,519 1,445 189 0 0

Loans, net 226,434 233,371 252,967 258,464 285,602 307,913 316,579 340,607 345,271 354,260

Other assets 12,550 13,169 12,685 14,730 14,411 19,798 19,019 18,026 17,689 18,311

Total assets $282,373 $302,935 $303,140 $330,356 $346,947 $382,271 $443,214 $451,140 $478,802 $472,161

Liabilities and Shareholders' Equity

Noninterest-bearing deposits $38,742 $39,194 $36,904 $46,814 $49,199 $60,037 $72,323 $74,122 $70,314 $74,999

Interest-bearing deposits 200,533 217,565 219,351 237,852 253,878 264,563 318,923 323,229 354,278 341,767

Total deposits 239,275 256,759 256,255 284,666 303,077 324,600 391,246 397,351 424,592 416,766

FHLB advances 11,577 13,077 16,050 13,490 10,328 22,531 15,495 14,700 14,700 14,700

Line of credit note payable 0 750 961 961 836 750 650 500 325 325

Accrued expenses and other liabilities 2,125 2,312 997 1,639 1,764 1,618 869 1,408 933 1,314

Total liabilities 252,977 272,898 274,263 300,756 316,005 349,499 408,260 413,959 440,550 433,105

Total shareholders' equity 29,396 30,037 28,877 29,600 30,942 32,772 34,954 37,181 38,252 39,056

Total liabilities and shareholders' equity $282,373 $302,935 $303,140 $330,356 $346,947 $382,271 $443,214 $451,140 $478,802 $472,161

Book value per share $14.40 $14.88 $14.55 $14.88 $15.50 $16.35 $17.31 $18.30 $18.83 $19.08

CNB has grown its balance sheet by $190 million since 2006, an absolute growth rate of 67.2% and a

compound annual growth rate of 7.1%

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Book Value and Dividends Per Share

The Company has consistently improved its book value per share over the past 7½ years, while still

maintaining a strong dividend to its shareholders

CNB has boosted its book value per share by $4.68 since 2006 for a compound annual growth rate of

3.8% and an overall growth rate of 32.5%

Since 2006, the Company has achieved an annualized return of approximately 7.5% (book value

accretion plus dividend payout), which outperformed other bank indexes during that same time frame (as

an example, the SNL Micro Cap Index returned approximately -5.5% annually during the same time

period)

Book Value Per Share Dividend Per Share

$14.40 $14.88 $14.55 $14.88 $15.50

$16.35 $17.31

$18.30 $19.08

$0.86 $0.90 $0.91

$1.00

$0.82 $0.84 $0.86 $0.86 $0.86

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

2006 2007 2008 2009 2010 2011 2012 2013 6/30/2014

Book value per share Dividends per share

* Note: 2014 dividend per share of $0.86 is the anticipated annualized dividend. $0.68 has been paid through July 31, 2014.

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Loans & Deposits

Loan Composition

Deposit Composition

35.9% 35.8% 34.1% 39.3% 40.2%

22.2% 22.4% 23.3%24.5% 27.1%

16.5% 16.3% 18.5%17.3%

16.3%

17.9% 19.4% 19.4%15.1% 13.5%

7.6% 6.2% 4.7% 3.8% 2.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013

CD's greater than $250,000

CD's less than $250,000

Noninterest Bearing Accounts

Other Transaction Accounts

Money Market & Savings

Accounts

Money Market

& Savings

Accounts,

38.5%

Other

Transaction

Accounts,

28.8%

Noninterest

Bearing

Accounts,

17.7%

CD's less than

$250,000,

12.3%

CD's greater

than $250,000,

2.8%

June 30, 2014 Deposit Breakdown

June 30, 2014 Loan Breakdown

Note: Information shown is at the bank level.

38.8% 38.8% 38.5% 39.4% 40.6%

27.2% 29.6% 29.3% 29.3% 28.3%

14.3% 14.1% 16.3% 16.1% 16.8%

9.3% 7.9% 6.2% 4.8% 4.0%

10.4% 9.6% 9.9% 10.3% 10.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013

Other

Consumer

Commercial & Industrial

Commercial Real Estate

1-4 Family Residential

1-4 Family

Residential,

41.6%

Commercial

Real Estate,

31.1%

Commercial &

Industrial,

16.8%

Consumer,

3.8%

Other, 6.7%

CNB’s loan portfolio is very well diversified and not primarily tied to any one lending sector

CNB maintains over 45,000 customer deposit accounts and has no dominant concentration

Note: Other loans include farm,

agricultural, construction, and multifamily

loans.

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Loan Loss Provisions and Net Charge Offs

CNB maintains a conservative approach to it loan portfolio, adequately provisioning for loan losses on a

regular basis and most often times having to charge off less than provision

$1,579

$1,945 $1,915

$1,245

$644

$385

$748

$551

$1,098

$1,355

$406

$101

$0

$500

$1,000

$1,500

$2,000

$2,500

2009 2010 2011 2012 2013 6/30/2014

Provision Expense Net Charge Offs

$ in 000s

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Leverage & Total Risk Based Capital Ratios

Capitalization

Tangible Common Equity/Tangible Assets

8.57% 8.50%8.14% 7.88% 7.87% 7.72%

12.06% 11.99% 12.11%12.64% 12.74% 12.60%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

12.00%

13.00%

14.00%

2009 2010 2011 2012 2013 Q2 2014

Leverage Ratio Total Risk Based Capital Ratio

8.48% 8.44%

8.11%

7.45%

7.77% 7.83%

5.00%

5.50%

6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

9.00%

2009 2010 2011 2012 2013 Q2 2014

Note: Information shown is at the bank level

Page 25 Co

nta

ct I

nfo

rmat

ion

Craig S. Connor

President & CEO

P: (517) 439-0437

[email protected]

John R. Waldron

Senior VP & Senior Loan Officer

P: (517) 439-6117

[email protected]

Main Office:

One South Howell St.

Hillsdale, MI 49242

P: (517) 439-4300

Toll Free: (888) 322-1088

www.countynationalbank.com

Contacts:

Mary P. Marshall

VP & Senior Trust Officer

P: (517) 439-0448

[email protected]

Sharon L. Burns

VP & CFO

P: (517) 439-6115

[email protected]

Hillsdale County National Bank

Documents

CNB Community Bancorp, Inc. - County National · PDF fileHillsdale, MI 1 CNB Community Bancorp Inc. 5 229,367 53.65 ... Sharon is a member of the MBA Chief Financial Officer Forum,