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Tompkins Financial CorporationA N N U A L R E P O R T TABLE OF CONTENTS Consolidated Financial Highlights Message to the Shareholders Executive Management and Board of Directors Officers Shareholder Information 4 5 8 9 12 2014 ANNUAL REPORT HIGHLIGHTS 3 CONSOLIDATED FINANCIAL HIGHLIGHTS (dollars in thousands, except per share data) HIGHLIGHTS FOR THE YEAR Interest and Dividend Income Interest Expense Net Interest Income Non-interest Income Non-interest Expense Net Income Net Income Return on: Average Assets Average Equity AT YEAR END Assets Loans, net of unearned Deposits Shareholders’ Equity PER SHARE DATA Net Income, diluted Dividends Book Value Market Value 4 CNB FINANCIAL CORPORATION 2014 $86,882 12,287 74,595 14,321 52,688 23,074 1.07% 12.76% 2013 $71,416 12,212 59,204 13,766 43,813 16,679 % Change 21.7% 0.6% 26.0% 4.0% 20.3% 38.3% 0.88% 11.38% 21.6% 12.1% $2,189,213 1,355,289 1,847,079 188,548 $2,131,289 1,295,363 1,835,314 164,911 2.7% 4.6% 0.6% 14.3% $1.60 0.66 13.09 18.50 $1.29 0.66 11.43 19.00 24.0% 0.0% 14.5% (2.6%) MESSAGE TO THE SHAREHOLDERS To Our Shareholders, Customers, Employees & Friends: CNB Financial Corporation has once again achieved double-digit growth in earnings. Net income for 2014 rose 38% over 2013 to $23.1 million. Prior to 2013, which included acquisition costs of $2.4 million, the Corporation had four consecutive years of double-digit increases. The overall philosophy that community bank earnings are based on solid core deposits has been the primary driver of this achievement. During the last five years, deposits have increased $890 million, or 93%. Along with solid earnings, asset quality also improved during the year. The ratio of non-performing assets to total assets was 0.47% at December 31, 2014, a level that has not been achieved since September 2008. In addition, the ratio of clas- sified assets to capital declined substantially during 2014 while achieving a nominal ratio of net chargeoffs to average loans of 0.21%. All of CNB’s asset quality metrics are very favorable to allow the Corporation to grow into the future. Loan growth for 2014 was 4.6% and was achieved with a key focus placed on reducing the level of classified assets. The Corporation’s markets are recovering well, and even expanding, after the lengthy recent recession. Liquidity is strong with a loan to deposit ratio of 73%, and investment portfolio provides consistent cash flows to fund future loan growth. In 2014, deposit customers became more confident in the local and US economies. There has been a spending expansion by our business customers as orders have increased and equipment replacement and building expansions have begun. Customers have also started investing money back into the markets through stocks, bonds and mutual funds. As de- posits across our market area grew over the last five years, there was an underlying assumption that confidence would be restored and spending would once again occur, thereby reducing the deposit base of financial institutions. CNB has fared well as many of the deposit customers gained are true relationships with core operating accounts. 2014 ANNUAL REPORT HIGHLIGHTS 5 FINANCIALS ASSET GROWTH (in thousands) FINANCIALS $1,413,511 2010 1,000 1,200 1,400 1,600 1,800 200 400 600 800 0 $1,602,207 2011 2,000 2,200 2,400 2012 2013 2014 $1,773,079 $2,131,289 $2,189,213 DEPOSIT GROWTH (in thousands) 0 125 250 375 500 625 750 875 1,000 1,125 1,250 1,375 1,500 1,625 1,750 1,875 $1,162,868 $1,353,851 $1,485,003 $1,835,314 $1,847,079 NET INTEREST INCOME (in thousands) $ 0 $8 $16 $ 24 $ 32 $ 40 $ 48 $ 56 $ 64 $ 72 $ 74 2010 2011 2012 2013 2014 $42,091 $48,133 $53,209 $59,204 $74,595 EARNINGS PER SHARE (diluted) $.00 .15 .30 .45 .60 .75 .90 1.05 1.20 1.35 1.50 1.65 $1.06 $1.23 $1.38 $1.29 $1.60 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 6 CNB FINANCIAL CORPORATION Message to the Shareholders continued… One key focus for 2014, as mentioned earlier, was to improve asset quality. That was not the only initiative. Perhaps the most significant focus was to integrate the FCBank acquisition. Much has occurred in Ohio for the Corporation during the first 15 months following the acquisition with very positive results. The FCBank team is almost entirely in place and has done an excellent job retaining many of the existing customers while creating many new relationships. A new office in Dublin, Ohio opened in July housing our commercial lending and private banking groups. In addition, CNB Bank and ERIE- BANK each opened new loan production offices during the year in Hollidaysburg, PA and Ashtabula, OH, respectively. Both have been very well received in each market. ERIEBANK also constructed and opened, in January 2015, its eighth office, located in the northwest area of the city of Erie, PA. CNB’s Board, management, and team look forward to 2015 with a clean balance sheet, an improving economy, and a capac- ity for expanding customer relationships. Your confidence and ownership has been a real strength for this Corporation. Joseph B. Bower, Jr. President and Chief Executive Officer 2014 ANNUAL REPORT HIGHLIGHTS 7 EXECUTIVE MANAGEMENT & BOARD OF DIRECTORS Corporate Officers, CNB Financial Corporation Joseph B. Bower, Jr. President & Chief Executive Officer Brian W. Wingard Treasurer & Principal Financial Officer Richard L. Greslick, Jr. Secretary Vincent C. Turiano Assistant Secretary Executive Officers, CNB Bank Joseph B. Bower, Jr. President & Chief Executive Officer Mark D. Breakey Senior Executive Vice President & Chief Credit Officer Richard L. Greslick, Jr. Senior Executive Vice President, Chief Operating Officer Board of Directors CNB Financial Corporation and CNB Bank Dennis L. Merrey Chairman of the Board Retired, Formerly President, Clearfield Powdered Metals, Inc. (Manufacturer) Joseph B. Bower, Jr. President and Chief Executive Officer, CNB Financial Corporation; President & Chief Executive Officer, CNB Bank William F. Falger Retired, Formerly President & Chief Executive Officer, CNB Financial Corporation, CNB Bank Richard L. Greslick, Jr. Senior Executive Vice President & Chief Operating Officer, CNB Bank; Secretary, CNB Financial Corporation R. Duane Hord President of Hord Livestock Company, Inc. (Agriculture) Mary Ann Conaway Executive Vice President, Human Resources Leanne D. Kassab Executive Vice President, Customer Experience Joseph E. Dell, Jr. Executive Vice President & Chief Lending Officer Vincent C. Turiano Executive Vice President, Wealth Officer Brian W. Wingard Executive Vice President & Chief Financial Officer Richard B. Seager President and Chief Executive Officer, Beacon Light Behavioral Health Systems (Health Services) Peter F. Smith Attorney at Law Director Emeritus L. E. Soult, Jr. Robert W. Montler President & Chief Executive Officer, Lee Industries and Keystone Process Equipment (Manufacturer) Joel E. Peterson President, Clearfield Wholesale Paper (Wholesaler) Deborah Dick Pontzer Economic Development & Workforce Specialist, Office of Congressman Glenn Thompson Jeffrey S. Powell President, J.J. Powell, Inc. (Petroleum Distributor) James B. Ryan Retired, Formerly Vice President of Sales, Marketing, Windfall Products, Inc. (Manufacturer) Nick Scott, Jr. Vice President & Owner, Scott Enterprises (Hospitality Industry) 8 CNB FINANCIAL CORPORATION OFFICERS Administrative Services Timothy A. Bracken Vice President, Controller Edward H. Proud Vice President, Information Systems Susan M. Warrick Vice President, Operations Donna J. Collins Vice President, Regulation & Examination Branch Division Vickie L. Baker Assistant Vice President, Regional Branch Administration, Bradford Main Office Tyler A. Kirkwood Regional Branch Administration, Clearfield Industrial Park Road Office Mary A. Baker Assistant Vice President, Northern Cambria Office Lending Division Jeffrey W. Alabran Senior Vice President, Commercial Banking, Indiana Gregory M. Dixon Vice President, Commercial Banking, Clearfield Michael E. Haines Vice President, Commercial Banking, St. Marys Robin L. Hay Vice President, Commercial Banking, Clearfield Karen R. Pfingstler Vice President, Commercial Banking, DuBois Thomas J. Ammerman, Jr. Assistant Vice President, Security Shannon L. Irwin Assistant Vice President, Human Resources Paul A. McDermott Assistant Vice President, Facilities Carolyn B. Smeal Assistant Vice President, Operations Becky Coleman Operations Officer Carol J. Cossick Assistant Controller Thomas W. Grice Network Administration Officer Amy B. Potter Marketing Officer Dennis J. Sloppy Information Systems Officer B.J. Sterndale Training Officer Brenda L. Terry Banking Officer Susan J. Shimmel Assistant Vice President, Clearfield Old Town Road Office Deborah Peak Banking Officer, Indiana Larry A. Putt Banking Officer, Clearfield Nadine J. Rodgers Banking Officer, Indiana Mary Ann Roney Banking Officer, Bradford Gregory R. Williams Banking Officer, Clearfield Timothy C. Nagle Vice President, Commercial Banking, Blair County Matthew Q. Raptosh Vice President, Commercial Banking, Philipsburg Michael C. Sutika Vice President, Commercial Banking, Clearfield Joseph H. Yaros Vice President, Commercial Banking, Bradford David W. Ogden Vice President, Credit Administration Lori Curtis Community Office Manager, Philipsburg Plaza Office Denise J. Greene Community Office Manager, DuBois Office Lynette Hebel Community Office Manager, Karthaus and Kylertown Offices Alesia McElwee Community Office Manager, Clearfield Main Office Douglas M. Shaffer Community Office Manager, Punxsutawney Office Lori D. Shimel Community Office Manager, Houtzdale and Madera Offices Caroline Henry Community Office Manager, Philipsburg Presqueisle Street Office Pam Synder Community Office Manager, Kane Office Eileen F. Ryan Vice President, Mortgage Lending Ruth Anne Ryan-Catalano Vice President, Retail Banking C. Brett Stewart Vice President, Commercial Banking, Indiana Christopher L. Stott Vice President, Retail Lending James C. Davidson Assistant Vice President, Private Banking Cory Johnston Assistant Vice President, Credit Administration Michael Mignogna Assistant Vice President, Commercial Banking, Blair County Autumn F. Farley Commercial Loan Portfolio Manager & Support Lending Officer Katie A. Penoyer Commercial Banking Officer Wealth & Asset Management Services Craig C. Ball Vice President, Wealth & Asset Management Eric A. Johnson Vice President, Wealth & Asset Management Glenn R. Pentz Vice President, Wealth & Asset Management Andrew Roman Vice President, Wealth & Asset Management Calvin R. Thomas, Jr. Vice President, Wealth & Asset Management Shawn Amblod Assistant Vice President, Wealth & Asset Management R. Michael Love Assistant Vice President, Wealth & Asset Management Andrew D. Franson Wealth & Asset Operations Officer 2014 ANNUAL REPORT HIGHLIGHTS 9 OFFICERS & AFFILIATES ERIEBANK, a Division of CNB Bank David J. Zimmer President Steven M. Cappellino Senior Vice President, Commercial Banking, Meadville Office Donald W. Damon Senior Vice President, Private Banking William L. DeLuca, Jr. Senior Vice President, Commercial Banking David Bogardus Vice President, Commercial Banking, Ashtabula Betsy Bort Vice President, Commercial Banking Scott O. Calhoun Vice President, Commercial Banking Joshua P. Miller Vice President, ERIEBANK Investment Advisors Larry Morton Vice President, ERIEBANK Investment Advisors John M. Schulze Vice President, Commercial Banking William J. Vitron, Jr. Vice President, ERIEBANK Investment Advisors Chrystal M. Fairbanks Assistant Vice President, Commercial Banking, Ashtabula Katie J. Jones Assistant Vice President, Regional Retail Administrator, Harborcreek Office Carla M. LaGuardia Assistant Vice President, Commercial Banking, West 12th Street Office James Miale Assistant Vice President, Commercial Banking, Meadville Office Gregory Noon Assistant Vice President, Commercial Banking, Warren Office Helicia E. Sonney Community Office Manager, Asbury Office Theresa L. Swanson Community Office Manager, Warren Office Mary J. Taormina Community Office Manager, Meadville Office Abby L. Williams Community Office Manager, West 12th Street Office Kelly S. Buck Private Banking Officer Russell Daniels Commercial Lending Officer Allison Hodas Cash Management Officer Paul D. Sallie Assistant Vice President, Private Banking Julie L. Martin Operations Officer Debra Masone Community Office Manager, Vernon Office Erin Mehler Community Office Manager, Interchange Office Timothy Roberts Commercial Lending Officer ERIEBANK Regional Board of Directors Joseph B. Bower, Jr. President and Chief Executive Officer, CNB Financial Corporation, CNB Bank David K. Galey Vice President of Administration, Greenleaf Corporation (Manufacturer) Thomas Kennedy President, Professional Development Associates, Inc. (Real Estate Developer) Mark D. Breakey Senior Executive Vice President & Chief Credit Officer, CNB Bank James E. Gehrlein Chairman, Enterprise Loan Fund of Develop Erie (Community Development) Charles H. Reams President, C. H. Reams & Associates, Inc. (Insurance) Gary L. Clark Managing Partner, Stonebank Management, LLC (Consulting) Jane M. Earll Esquire, (Senator, Retired) Richard L. Greslick, Jr. Senior Executive Vice President & Chief Operating Officer, CNB Bank; Secretary, CNB Financial Corporation Charles Hagerty Vice President, Northern Tier Markets, UPMC Health Plan (Health Services) Nick Scott, Jr. Vice President & Owner, Scott Enterprises (Hospitality Industry) James E. Spoden Esquire, MacDonald Illig Jones & Britton, LLP (Law Office) David J. Zimmer President, ERIEBANK 10 CNB FINANCIAL CORPORATION FCBank, a Division of CNB Bank J. Andrew Dale President Kimberly S. Emerson Vice President, Private Banking Terrance E. Hamm Vice President, Commercial Banking Robert N. Hatch Vice President, Commercial Banking Stephen R. Lust Vice President, Regional Retail Sales Manager Jeffrey C. Perkins Vice President, Private Banking Dean J. Vande Water Vice President, Commercial Relationship Manager Brian C. Bach Assistant Vice President, Agriculture Lending Donna M. Conley Assistant Vice President, Lending William R. Diehl Assistant Vice President, Dublin Office Elizabeth M. Ricketts Assistant Vice President, Regional Branch Administration J. Ralph Parker Senior Credit Officer Brian A. McFarland Community Office Manager, Upper Arlington Office Michelle P. Muchow Banking Officer, Dublin Office Toni M. Ridge Banking Officer, Bucyrus North Office Teri A. Slate Community Office Manager, Shiloh Office Jared Butler Network Adminstrator, Facilities Officer Travis M. Smith Operations Officer Annette D. Lester Community Office Manager, Cardington Office Clara J. McClung Community Office Manager, Worthington Office Ashley Snyder Agricultural Lending Officer Elaine M. Wilson Community Office Manager, Fredericktown Office FCBank, Regional Board of Directors Joseph B. Bower, Jr. President and Chief Executive Officer, CNB Financial Corporation, CNB Bank Mark D. Breakey Senior Executive Vice President & Chief Credt Officer, CNB Bank Patrick J. Drouhard Retired, Superintentdent, Cardington- Lincoln School District (Education) Richard L. Greslick, Jr. Executive Vice President and Chief Operating Officer, CNB Bank; Secretary, CNB Financial Corporation R. Duane Hord President, Hord Livestock, Inc. (Agriculture) Patrick Hord CEO, Hord Livestock, Inc. (Agriculture) Lawrence A. Morrison CPA and Partner, Kleshinski, Morrison & Morris, LLP (Accounting) David Royer Vice President of Finance & Development, Continental Real Estate Companies (Real Estate Developer) J. Randall Schoedinger CEO, Schoedinger Funeral and Cremation Services J. Andrew Dale President, Chairman Holiday Financial Services Corporation, a Subsidiary of CNB Financial Corporation BOARD OF DIRECTORS Joseph B. Bower, Jr. Chairman Richard L. Greslick, Jr. Secretary Christopher L. Stott Director Brian W. Wingard Director CORPORATE OFFICERS Christopher L. Stott Chairman Joseph P. Strouse President CNB Securities Corporation, a Subsidiary of CNB Financial Corporation, Wilmington, DE BOARD OF DIRECTORS Timothy A. Bracken Director Glenn R. Pentz Director Donald R. McLamb, Jr. Wilmington Trust SP Services, Inc. CORPORATE OFFICERS Brian W. Wingard President Donald R. McLamb, Jr. Treasurer, Wilmington Trust SP Services, Inc. Elizabeth F. Bothner Secretary, Wilmington Trust SP Services, Inc. 2014 ANNUAL REPORT HIGHLIGHTS 11 SHAREHOLDER INFORMATION Annual Meeting Quarterly Share Data For information regarding the Corporation’s quarterly share data, please refer to Item 5 in the 2014 Form 10-K. Market Makers The following firm has chosen to make a market in the stock of the Corporation. Inquiries concerning their services should be directed to: Boenning & Scattergood, Inc. 1700 Market Street, Ste 1420 Philadelphia, PA 19103 (800) 842-8928 The Annual Meeting of the Shareholders of CNB Financial Corporation will be held Tuesday, April 21, 2015 at 2:00 p.m. at the Clearfield, PA campus of Lock Haven University located at 201 University Drive, Clearfield, PA 16830. Corporate Address CNB Financial Corporation 1 S. Second Street P.O. Box 42 Clearfield, PA 16830 (814) 765-9621 Stock Transfer Agent & Registrar Computershare P.O. Box 30170 College Station, TX 77842 (800) 368-5948 Form 10-K Shareholders may obtain a copy of the Annual Report to the Securities and Exchange Commission on Form 10-K by writing to: CNB Financial Corporation 1 S. Second Street P.O. Box 42 Clearfield, PA 16830 ATTN: Shareholder Relations 12 CNB FINANCIAL CORPORATION Corporate Profile ERIEBANK CNB Financial Corporation is a leader in providing integrat- ed financial solutions which create value for both consum- ers and businesses. These solutions encompass checking, savings, time and deposit accounts, Private Banking, loans and lines of credit (real estate, commercial, industrial, residential and consumer), credit cards, cash manage- ment, online banking, mobile banking, merchant credit card processing, on-site banker and accounts receivable handling. In addition, the Corporation provides wealth and asset management services, retirement plans and other employee benefit plans. CNB Bank A subsidiary of CNB Financial Corporation, CNB is a regional independent community bank in North Central Pennsylva- nia with over 400 employees who make customer service more responsive and reliable. For 150 years, the Bank has strived to be more customer-driven than its competitors and to build long-term customer relationships by being reliable and competitively priced. CNB continually seeks innovative ways to execute a personal, quality-driven customer service strategy and prides itself on being first-to-market for many of these innovations. To satisfy customers’ financial needs and expectations, it offers a variety of delivery channels, which include twenty-one full-service offices, one loan production office, nineteen ATMs, telephone banking (1-866-224-7314), Internet banking (www.BankCNB.com), mobile banking, and a centralized customer service center (1-800-492-3221). Headquartered in Erie, Pennsylvania, ERIEBANK is a division of CNB Bank. Presently, there are eight full service offices in Pennsylvania, which house its commercial, retail and Pri- vate Banking divisions. Five of those offices are in Erie, two in Meadville, and one in Warren, Pennsylvania. ERIEBANK also has one loan production office in Ashtabula, Ohio. In addition, ERIEBANK Investment Advisors provides wealth and asset management services, retirement plans and other employee benefit plans. FCBANK FCBank, a division of CNB Bank, is headquartered in Bu- cyrus, Ohio with nine full service offices in the communties of Bucyrus, Shiloh, Mt. Hope, Cardington, Fredericktown, Worthington, Dublin, and Upper Arlington. FCBank is driven by a strong focus on meeting the financial needs of businesses and individuals in a way only a community bank can deliver. FCBank offers commercial, retail, and Private Banking services. Holiday Financial Services Holiday Financial Services, a subsidiary of CNB Financial Corporation, is a consumer loan company, and currently has thirteen convenient office locations in State College, Bradford, Clearfield, Hollidaysburg, Erie, Northern Cambria, Ridgway, Johnstown, Ebensburg, DuBois, Indiana, Clarion, and Huntingdon, Pennsylvania. 2014 ANNUAL REPORT HIGHLIGHTS 13 Backed by the full faith and credit of the United States government Each depositor insured to at least $250,000 FDIC Federal Deposit Insurance Corporation •www.fdic.gov The common stock of the Corporation trades on the NASDAQ Global Select Market under the symbol CCNE. 14 CNB FINANCIAL CORPORATION CNB Financial Corporation 1 South Second Street – P.O. Box 42 Clearfield, PA 16830 800-492-3221 www.BankCNB.com
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