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

Exhibit 99.1

Press Release — For Immediate Release

October 27, 2009

CCFNB Bancorp, Inc. Reports Record Third Quarter 2009 Earnings

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

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the three months ended September 30, 2009 was $1,461,000 compared to $872,000 for the same period in 2008. On a year to date basis, net income for the nine months ended September 30, 2009 was $4,555,000. Earnings per share for the three months ended September 30, 2009 and 2008 were $0.65 and $0.43 per share, respectively. This represents an increase of $0.22 per share, or 51.2%. Annualized return on average assets and return on average equity were 1.01 % and 9.31 % for the three months ended September 30, 2009 as compared to 1.02 % and 8.80 % for the same period of 2008.

The net interest margin, tax effected, on interest earning assets decreased to 3.77% as of September 30, 2009 as compared to 3.85% as of September 30, 2008.

Total assets increased $24.6 million to $593 million at September 30, 2009 from $568.3 million at December 31, 2008. The investment portfolio increased approximately $22.0 million during the nine months ended September 30, 2009. Since the end of 2008, net loans increased $10.9 million, an increase of 3.4 %. Total deposits increased $8.4 million while short term borrowings increased $6.5 million since the end of 2008.

Stockholders’ equity, excluding accumulated other comprehensive income, has increased $2.9 million to $62.0 million as of September 30, 2009. The current level of stockholders’ equity equated to a book value per share of $28.74 at September 30, 2009 as compared with $26.97 as of December 31, 2008. During the nine months ended September 30, 2009 cash dividends of $0.75 per share were paid to stockholders compared to $0.66 for the comparable period of 2008. The current dividend represents an increase of 13.6 % as compared to 2008 amounts. CCFNB Bancorp, Inc. remains well capitalized, with an equity-to assets ratio of 10.92 % as compared to 10.12 % as of September 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)
	September 30,			December 31,
(In Thousands)	2009			2008
ASSETS
Cash and due from banks	$	6,817		$	10,173
Interest-bearing deposits in other banks		92			149
Federal funds sold		742			5,163
Total cash and cash equivalents		7,651			15,485
Investment securities, available for sale, at fair value		218,583			196,580
Loans,net of unearned income		331,099			320,068
Less: Allowance for loan losses		3,934			3,758
Loans, net		327,165			316,310
Premises and equipment, net		12,063			12,609
Accrued interest receivable		2,089			2,388
Cash surrender value of bank-owned life insurance		11,319			10,943
Investment in limited partnerships		727			845
Intangible Assets:
Core deposit		2,919			3,411
Goodwill		7,937			7,937
Other assets		2,445			1,811
TOTAL ASSETS	$	592,898		$	568,319
LIABILITIES
Interest-bearing deposits	$	393,096		$	381,849
Noninterest-bearing deposits		49,562			52,460
Total deposits		442,658			434,309
Short-term borrowings		61,995			55,462
Long-term borrowings		15,129			9,133
Junior subordinate debentures		4,640			4,640
Accrued interest payable		907			1,075
Other liabilities		2,771			2,925
TOTAL LIABILITIES		528,100			507,544
STOCKHOLDERS’ EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares; issued 2,266,980 shares in 2009 and 2,253,080 shares in 2008		2,834			2,816
Surplus		27,443			27,173
Retained earnings		32,030			29,164
Accumulated other comprehensive income		2,764			1,622
Treasury stock, at cost: 12,500 shares in 2009 and 0 shares in 2008		(273	)		—
TOTAL STOCKHOLDERS’ EQUITY		64,798			60,775
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	592,898		$	568,319

See accompanying notes to unaudited consolidated financial statements.

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

	For the Three Months							For the Nine Months
	Ended September 30,							Ended September 30,
(In Thousands, Except Per Share Data)	2009			2008				2009			2008
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:							��
Taxable	$	4,682		$	4,535			$	14,086		$	9,614
Tax-exempt		215			197				622			495
Interest and dividends on investment securities:
Taxable		1,968			1,967				6,195			3,220
Tax-exempt		123			80				315			164
Dividend and other interest income		11			39				48			88
Federal funds sold		5			45				11			153
Deposits in other banks		—			3				1			23
TOTAL INTEREST AND DIVIDEND INCOME		7,004			6,866				21,278			13,757
INTEREST EXPENSE
Deposits		1,842			1,979				5,775			4,005
Short-term borrowings		95			222				254			580
Long-term borrowings		175			140				462			432
Junior subordinate debentures		28			44				104			44
TOTAL INTEREST EXPENSE		2,140			2,385				6,595			5,061
NET INTEREST INCOME		4,864			4,481				14,683			8,696
PROVISION FOR LOAN LOSSES		310			—				530			—
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,554			4,481				14,153			8,696
NON-INTEREST INCOME
Service charges and fees		427			317				1,251			797
Gain on sale of loans		201			74				547			194
Earnings on bank-owned life insurance		107			111				324			244
Brokerage		83			82				190			174
Trust		150			143				462			217
Investment security losses		(10	)		(283	)			(71	)		(283	)
Other		328			427				1,110			565
TOTAL NON-INTEREST INCOME		1,286			871				3,813			1,908
NON-INTEREST EXPENSE
Salaries		1,632			1,637				4,776			3,056
Employee benefits		398			1,125				1,232			1,595
Occupancy		249			240				810			496
Furniture and equipment		319			361				944			583
State shares tax		128			114				400			277
Professional fees		172			250				447			382
Director’s fees		74			55				215			152
FDIC assessments		105			19				543			29
Other		839			496				2,621			1,111
TOTAL NON-INTEREST EXPENSE		3,916			4,297				11,988			7,681
INCOME BEFORE INCOME TAX PROVISION		1,924			1,055				5,978			2,923
INCOME TAX PROVISION		463			183				1,423			653
NET INCOME	$	1,461		$	872			$	4,555		$	2,270
EARNINGS PER SHARE	$	0.65		$	0.43			$	2.02		$	1.51
CASH DIVIDENDS PER SHARE	$	0.27		$	0.24			$	0.75		$	0.66
WEIGHTED AVERAGE SHARES OUTSTANDING		2,252,039			2,056,686				2,253,872			1,503,955

See accompanying notes to the unaudited consolidated financial statements.

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
Operating Highlights
Net income	$	1,461		$	1,551		$	1,543		$	808		$	872
Net interest income		4,864			4,826			4,993			5,157			4,481
Provision for loan losses		310			160			60			750			—
Non-interest income		1,286			1,361			1,166			852			1,154
Non-interest expense		3,916			4,104			3,968			4,208			4,580
Financial Condition Data:
Total assets	$	592,898		$	570,299		$	569,542		$	568,319		$	582,241
Loans, net		327,165			324,407			321,297			316,310			321,692
Intangibles		10,856			11,013			11,180			11,348			9,814
Total deposits
Noninterest-bearing	$	49,562		$	49,978		$	50,857		$	52,460		$	52,580
Savings		55,431			57,303			56,673			54,717			55,853
NOW		64,846			66,062			66,286			63,776			65,201
Money Market		41,743			44,303			47,090			37,120			36,182
Time Deposits		231,076			224,182			226,342			226,236			228,436
Total interest-bearing deposits		393,096			391,850			396,391			381,849			385,672
Core deposits*		211,582			217,646			220,906			208,073			209,816
Selected Ratios
Net interest margin(YTD)		3.77	%		3.84	%		3.95	%		3.90	%		3.84	%
Annualized return on average assets		1.01	%		1.09	%		1.09	%		0.81	%		1.03	%
Annualized return on average equity		9.31	%		9.97	%		10.02	%		7.26	%		8.81	%
Capital Ratios
Total risk-based capital ratio		17.84	%		17.80	%		17.36	%		16.48	%		15.76	%
Tier 1 capital ratio		16.65	%		16.64	%		16.20	%		15.37	%		14.87	%
Leverage ratio		9.72	%		9.71	%		9.44	%		9.27	%		10.21	%
Asset Quality Ratios
Non-performing assets	$	6,595		$	5,044		$	5,191		$	5,384		$	4,608
Allowance for loan losses		3,934			3,762			3,753			3,758			3,055
Allowance for loan losses to total loans		1.19	%		1.15	%		1.16	%		1.17	%		0.94	%
Allowance for loan losses to non-performing loans		63.30	%		80.34	%		83.03	%		74.99	%		70.20	%
Per Share Data
Earnings per share	$	0.65		$	0.68		$	0.69		$	0.31		$	0.37
Dividend declared per share		0.27			0.24			0.24			0.24			0.24
Book value		28.74			27.90			27.41			26.97			26.21
Common stock price:
Bid	$	23.25		$	21.25		$	18.25		$	18.75		$	22.00
Ask		24.50			21.50			19.85			20.00			23.75
Weighted average common shares		2,252,039			2,256,348			2,254,044			2,249,275			2,056,686

* Core deposits are defined as total deposits less time deposits