Page 7 - CNB Bank Shares 2018 Annual Report

acquisition. Nearly every line item of assets, acquisition of JSB is reflected in preferred
liabilities, and equity show marked increase stock, common stock, and surplus. This
between the two year-ends, as shown on experienced, banking-sector investor group
the Balance Sheets on page 9. For instance, has expressed confidence in the value
while total loans increased nearly $228 of CNB’s expansion in total footings and
million, the amount of net loans acquired related profitability potential by investing
were approximately $190 million of that total. at a 1.42 multiple of tangible book value.
The difference of $38 million represents Our board will work with Castle Creek in the
“organic” growth of just over 5%. The coming years to determine best strategies for
“unamortized discount on purchased loans” continuity of capital support.
will be accredited into income over the next Naturally, the Statements of Income on
three years. More detail for this accounting page 10 also show significant increases in
Ribbon Cutting Ceremony at the new Tinley Park location on June 26, 2018. treatment is presented in Note 1 under the nearly every line item due to the acquisition.
section titled “Loans Acquired Through The main component of profitability, net
and experience as we grow into a billion- opened in Region 3 in the nearby community Transfer” on page 16. interest income, shows an increase of more
dollar-plus company. Rich Foss, JSB’s former of Palos Heights. And now in April of 2018, Similarly, the $295 million increase in than 22%. Noninterest income contributions
CEO, joined our CNB Bank & Trust board, CNB has opened its third de novo branch total deposits includes acquired deposits of from JSB include those from fiduciary
and provides valuable continuity with JSB’s in the Region 3 community of Tinley Park. $273 million; so organic growth of $22 million activities, mortgage banking revenues, and
history, management, and keys to success. In each case the bank was able to remodel represents a 2.3% increase in that measure. investment brokerage fees (part of “other
During the second half of the year, several existing facilities and staff with local bankers. Details for the acquisition related increase in noninterest income”). Yet in 2018 the
employees from each and every department At Tinley Park a staff of seven has handled “notes payable” are presented in Note 10 on improvements in these income line items are
of both banks worked together and with our brisk account opening in both deposits ($20.5 page 34. more than offset by the impact, due to the
mainframe computer software vendor to be million at 12/31/2018) and loans ($27 million The Castle Creek capital injection of acquisition, of several “one time” increases
ready for a conversion that would combine at 12/31/2018), and reached profitability in nearly $30 million that allowed for CNB’s in certain expense categories. Chief among
the data bases and financials of the banks into November, well ahead of schedule. The
one. The final process of that conversion took entire three-branch region has grown to over
place over the three-day weekend of February $200 million in both deposits and loans at TOTAL LOANS TOTAL DEPOSITS
16-18, 2019, with CNB Bank & Trust emerging year-end, and contributed more than $2.3 $943.9 $1,116.1
as a $1.3 billion institution serving seventeen million of our net profits during 2018. These
communities from Cook County, Illinois to St more urban locations, along with our Region
$692.8 $716.2 $832.2 $820.7
Louis County, Missouri. 2 branch in Clayton, Missouri, have helped $637.0 $749.8
Back in 2010 when CNB consolidated us diversify our business with the more rural, $555.6 $686.2
the, then, four-bank holding company into agriculture-based communities we serve
one, we organized the branch structure into within our overall footprint.
three regions. Region 3 was actually created Now turning to a review of our audited IN MILLIONS IN MILLIONS
that year with the opening of a new branch in financial statements beginning on page 8, it
Oak Forest, a community in southern Cook must be emphasized that comparison of the
County. In 2014 another new branch was year 2018 with 2017 is distorted by the JSB
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

4 ANNUAL REPOR T 2018 ANNUAL REPOR T 2018 5