Griffin Financial Group Advises CNB Financial Corporation in its Acquisition of FC Banc Corp.

On October 11, 2013, CNB Financial Corporation (Nasdaq: CCNE), together with its subsidiary CNB Bank, announced that it had completed its previously announced acquisition of FC Banc Corp (OTC: FCBZ) of Bucyrus, Ohio, and its subsidiary, The Farmers Citizens Bank (“FC Bank”). FC Banc Corp had approximately $372.0 million in total assets, and serves the northern Ohio markets of Bucyrus, Cardington, Fredericktown, Mount Hope and Shiloh, as well as the communities of Worthington and Upper Arlington in the greater Columbus area with eight branch locations, in addition to a mortgage banking operation in Dublin, Ohio.

FC Bank will continue to operate as a division of CNB Bank with its own distinct brand, local leadership and oversight. The current CEO and other key executives of FC Bank have signed employment agreements to remain with CNB, and R. Duane Hord, the Chairman of the Board of FC Banc Corp, has joined the boards of CNB Financial Corporation and CNB Bank.

The purchase price equated to $30.00 per share in stock and cash, or $41.6 million in the aggregate with 80% of total consideration in the form of CNB stock.

CNB Financial has had success with a similar business model, starting its ERIEBANK franchise from scratch in 2005 in a new market as a distinctly branded division of CNB Bank with local management, but with backroom support and product offerings managed centrally. The ERIEBANK division is now over $500 million in total deposits with top 5 market share in Erie County, Pennsylvania. CNB Bank has experienced steadily strong double digit organic growth rates in loans and deposits and sees this transaction less as a way to acquire business and more as an opportunity to replicate its organic growth strategy in a new and favorable market.

FC Banc Corp., although enjoying a 1.0% return on assets for 2012, felt the need to partner with a larger institution that not only had the products, services and access to the capital markets to help fund its growth, but one that understood community banking and the uniqueness of its locally managed and client focused business model.

Griffin Financial Group, LLC served as exclusive financial advisor to CNB Financial Corporation in this transaction.

View the press release | View the Investor Presentation

For more information on this transaction, please contact Richard L. Quad, Senior Managing Director and Co-Head of the Financial Institutions Group, at 646.254.6387.