CCFNB Bancorp (CCFN) 8-K CCFNB Bancorp, Inc. Reports Record Second Quarter 2009 Earnings

Exhibit 99.1

Press Release — For Immediate Release

July 28, 2009

CCFNB Bancorp, Inc. Reports Record Second Quarter 2009 Earnings

Bloomsburg, PA — CCFNB Bancorp, Inc. (OTC: CCFN), parent company of First Columbia Bank & Trust Co., has released its unaudited financial statements for the second quarter of 2009.

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the three months ended June 30, 2009 was $1,551,000 compared to $747,000 for the same period in 2008. On a year to date basis, net income for the six months ended June 30, 2009 was $3,094,000. Earnings per share for the three months ended June 30, 2009 and 2008 were $.68 and $.61 per share, respectively. This represents an increase of $.07 per share, or 11.5%. Annualized return on average assets and return on average equity were 1.09 % and 9.97 % for the three months ended June 30, 2009 as compared to 1.21 % and 9.40 % for the same period of 2008.

The net interest margin, tax effected, on interest earning assets improved to 3.84% as of June 30, 2009 as compared to 3.79% as of June 30, 2008.

Total assets increased $2.0 million to $570.3 million at June 30, 2009 from $568.3 million at December 31, 2008. The investment portfolio increased approximately $1.5 million during the six months ended June 30, 2009. Since the end of 2008, net loans increased $8.1 million, an increase of 2.6 %. Total deposits increased $7.5 million while short term borrowings decreased $10.1 million since the end of 2008.

Stockholders’ equity, excluding accumulated other comprehensive income, has increased $2.0 million to $61.2 million as of June 30, 2009. The current level of stockholders’ equity equated to a book value per share of $27.90 at June 30, 2009 as compared with $26.97 as of December 31, 2008. During the six months ended June 30, 2009 cash dividends of $0.48 per share were paid to stockholders compared to $0.42 for the comparable period of 2008. The current dividend represents an increase of 14.3 % as compared to 2008 amounts. CCFNB Bancorp, Inc. remains well capitalized, with a strong equity-to assets ratio of 11.02 % as compared to 12.93 % as of June 30, 2008.

Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include operating, legal and regulatory risks; changing economic and competitive conditions and other risks and uncertainties.

CCFNB Bancorp, Inc.
Consolidated Balance Sheets

	(Unaudited)
	June 30,			December 31,
(In Thousands)	2009			2008
ASSETS
Cash and due from banks	$	7,451		$	10,173
Interest-bearing deposits in other banks		169			149
Federal funds sold		1,005			5,163
Total cash and cash equivalents		8,625			15,485
Investment securities, available for sale, at fair value		198,031			196,580
Loans,net of unearned income		328,169			320,068
Less: Allowance for loan losses		3,762			3,758
Loans, net		324,407			316,310
Premises and equipment, net		11,871			12,609
Accrued interest receivable		2,076			2,388
Cash surrender value of bank-owned life insurance		11,212			10,943
Investment in limited partnerships		766			845
Intangible Assets:
Core deposit		3,076			3,411
Goodwill		7,937			7,937
Other assets		2,298			1,811
TOTAL ASSETS	$	570,299		$	568,319
LIABILITIES
Interest-bearing deposits	$	391,850		$	381,849
Noninterest-bearing deposits		49,978			52,460
Total deposits		441,828			434,309
Short-term borrowings		45,382			55,462
Long-term borrowings		12,130			9,133
Junior subordinate debentures		4,640			4,640
Accrued interest payable		931			1,075
Other liabilities		2,489			2,925
TOTAL LIABILITIES		507,400			507,544
STOCKHOLDERS’ EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares; issued 2,261,765 shares in 2009 and 2,253,080 shares in 2008		2,827			2,816
Surplus		27,332			27,173
Retained earnings		31,176			29,164
Accumulated other comprehensive income		1,715			1,622
Treasury stock, at cost: 7,000 shares in 2009 and 0 shares in 2008		(151	)		—
TOTAL STOCKHOLDERS’ EQUITY		62,899			60,775
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	570,299		$	568,319

See accompanying notes to unaudited consolidated financial statements.

CCFNB Bancorp, Inc.
Consolidated Statements of Income
(Unaudited)

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(In Thousands, Except Per Share Data)	2009			2008		2009			2008
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	4,671		$	2,496	$	9,404		$	5,079
Tax-exempt		204			154		407			298
Interest and dividends on investment securities:
Taxable		2,015			645		4,227			1,253
Tax-exempt		105			39		192			84
Dividend and other interest income		11			24		37			49
Federal funds sold		1			44		6			108
Deposits in other banks		1			7		1			20
TOTAL INTEREST AND DIVIDEND INCOME		7,008			3,409		14,274			6,891
INTEREST EXPENSE
Deposits		1,920			990		3,933			2,026
Short-term borrowings		78			130		159			358
Long-term borrowings		150			138		287			292
Junior subordinate debentures		34			—		76			—
TOTAL INTEREST EXPENSE		2,182			1,258		4,455			2,676
NET INTEREST INCOME		4,826			2,151		9,819			4,215
PROVISION FOR LOAN LOSSES		160			—		220			—
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,666			2,151		9,599			4,215
NON-INTEREST INCOME
Service charges and fees		426			241		824			480
Gain on sale of loans		250			59		346			106
Earnings on bank-owned life insurance		114			68		217			133
Brokerage		51			54		107			92
Trust		160			36		312			74
Investment security losses		(61	)		—		(61	)
Other		421			79		782			152
TOTAL NON-INTEREST INCOME		1,361			537		2,527			1,037
NON-INTEREST EXPENSE
Salaries		1,543			716		3,144			1,419
Employee benefits		400			225		834			470
Occupancy		254			118		561			256
Furniture and equipment		302			107		625			222
State shares tax		129			78		272			163
Professional fees		108			66		275			132
Director’s fees		70			51		141			97
FDIC assessments		366			5		438			10
Other		932			319		1,782			615
TOTAL NON-INTEREST EXPENSE		4,104			1,685		8,072			3,384
INCOME BEFORE INCOME TAX PROVISION		1,923			1,003		4,054			1,868
INCOME TAX PROVISION		372			256		960			470
NET INCOME	$	1,551		$	747	$	3,094		$	1,398
EARNINGS PER SHARE	$	0.68		$	0.61	$	1.37		$	1.14
CASH DIVIDENDS PER SHARE	$	0.24		$	0.21	$	0.48		$	0.42
WEIGHTED AVERAGE SHARES OUTSTANDING		2,256,348			1,224,552		2,255,202			1,224,552

See accompanying notes to the unaudited consolidated financial statements.

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	6/30/2009			3/31/2009			12/31/2008			9/30/2008			6/30/2008
Operating Highlights
Net income	$	1,551		$	1,543		$	808		$	872		$	747
Net interest income		4,826			4,993			5,157			4,481			2,151
Provision for loan losses		160			60			750			—			—
Non-interest income		1,361			1,166			852			1,154			537
Non-interest expense		4,104			3,968			4,208			4,580			1,685
Financial Condition Data:
Total assets	$	570,299		$	569,542		$	568,319		$	582,241		$	247,179
Loans, net		324,407			321,297			316,310			321,692			159,804
Intangibles		11,013			11,180			11,348			9,814			—
Total deposits
Noninterest-bearing	$	49,978		$	50,857		$	52,460		$	52,580		$	20,721
Savings		57,303			56,673			54,717			55,853			26,830
NOW		66,062			66,286			63,776			65,201			29,370
Money Market		44,303			47,090			37,120			36,182			7,441
Time Deposits		224,182			226,342			226,236			228,436			90,859
Total interest-bearing deposits		391,850			396,391			381,849			385,672			154,500
Core deposits*		217,646			220,906			208,073			209,816			84,362
Selected Ratios
Net interest margin(YTD)		3.84	%		3.95	%		3.90	%		3.84	%		3.79	%
Annualized return on average assets		1.09	%		1.09	%		0.81	%		1.03	%		1.21	%
Annualized return on average equity		9.97	%		10.02	%		7.26	%		8.81	%		9.40	%
Capital Ratios
Total risk-based capital ratio		17.80	%		17.36	%		16.48	%		15.76	%		20.14	%
Tier 1 capital ratio		16.64	%		16.20	%		15.37	%		14.87	%		19.23	%
Leverage ratio		9.71	%		9.44	%		9.27	%		10.21	%		12.36	%
Asset Quality Ratios
Non-performing assets	$	5,044		$	5,191		$	5,384		$	4,608		$	232
Allowance for loan losses		3,762			3,753			3,758			3,055			1,436
Allowance for loan losses to total loans		1.15	%		1.16	%		1.17	%		0.94	%		0.89	%
Allowance for loan losses to non-performing loans		80.34	%		83.03	%		74.99	%		70.20	%		618.97	%
Per Share Data
Earnings per share	$	0.68		$	0.69		$	0.31		$	0.37		$	0.61
Dividend declared per share		0.24			0.24			0.24			0.24			0.21
Book value		27.90			27.41			26.97			26.21			26.21
Common stock price:
Bid	$	21.25		$	18.25		$	18.75		$	22.00		$	23.62
Ask		21.50			19.85			20.00			23.75			23.83
Weighted average common shares		2,256,348			2,254,044			2,249,275			2,056,686			1,224,552

* Core deposits are defined as total deposits less time deposits