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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
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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
1 CNB Community Bancorp Inc. 5 229,367 53.65
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
4 CNB Community Bancorp Inc. 5 141,573 9.23
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
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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
Page 10
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
Related Work Experience
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
Related Work Experience
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
Page 11
Mary P. Marshall – Vice President & Senior Trust Officer
Related Work Experience
• 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
Related Work Experience
• 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
Related Work Experience
• 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
• Board member since 2004
• 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)
• Board member since 2003
• 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)
• Board member since 2013
• 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
Page 13
Claude Rowley
• President – Rowley Inc. (Construction)
• Board member since 1995
• 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.
• Board member since 2003
• 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
• Board member since 2000
• Director of the Western Golf Association and the Evans Scholarship Fund in Chicago
David Pope
• Chairman – Powers Clothing, Inc.
• Board member since 1981
• 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.
• Board member since 1995
• 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.
Page 15 Table of Contents
Executive Summary
Company Overview
Corporate Strategy
Financial Highlights
Page 16 Co
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Str
ateg
y
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
Page 17 Table of Contents
Executive Summary
Company Overview
Corporate Strategy
Financial Highlights
Page 18 Fin
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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%
Page 19 Fin
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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
$3.00
2006 2007 2008 2009 2010 2011 2012 2013
Earnings Per Share Dividends Per Share Dividend Payout Ratio
Earnings & Dividends Per Share Dividend Payout Ratio
* Note: Net interest margin and efficiency ratio is at the bank level
4.92% 4.74% 4.56% 4.40% 4.73% 4.70% 4.35% 4.03% 3.94%
69.37% 69.37% 69.09% 70.62%67.51%
65.53%69.15% 70.43% 70.82%
40.00%
50.00%
60.00%
70.00%
80.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
2006 2007 2008 2009 2010 2011 2012 2013 YTD
6/30/2014
Net Interest Margin Efficiency Ratio
Page 20 Fin
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Consolidated Balance Sheet
($ 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%
Page 21 Fin
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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.
Page 22 Fin
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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
craig.connor@countynationalbank.com
John R. Waldron
Senior VP & Senior Loan Officer
P: (517) 439-6117
john.waldron@countynationalbank.com
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
mary.marshall@countynationalbank.com
Sharon L. Burns
VP & CFO
P: (517) 439-6115
sharon.burns@countynationalbank.com
Hillsdale County National Bank
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