CCFNB Bancorp (CCFN) 8-K CCFNB Bancorp, Inc. Reports Record Second Quarter 2010 Earnings

Exhibit 99.1

Press Release — For Immediate Release

July 20, 2010

CCFNB Bancorp, Inc. Reports Record Second Quarter 2010 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 2010.

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the three months ended June 30, 2010 was $1,661,000 compared to $1,551,000 for the same period in 2009. On a year to date basis, net income for the six months ended June 30, 2010 was $3,201,000 compared to $3,094,000 for the same period in 2009. Earnings per share for the three months ended June 30, 2010 and 2009 were $.74 and $.68, respectively. Annualized return on average assets and return on average equity were 1.10% and 9.97% for the three months ended June 30, 2010 as compared to 1.09% and 9.97% for the same period of 2009. The return on average assets and return on average equity were 1.01% and 9.25% for the year ended December 31, 2009.

The net interest margin, tax effected, on interest earning assets was 3.77% as of June 30, 2010 as compared to 3.84% as of June 30, 2009.

Total assets increased $9.1 million to $611.6 million at June 30, 2010 from $602.5 million at December 31, 2009. Since the end of 2009, net loans increased $14.4 million, an increase of 4.4% . Total deposits increased $9.7 million while short term borrowings decreased $3.0 million since the end of 2009. Long term borrowings decreased $5.0 million since the end of 2009.

When compared to December 31, 2009, Stockholders’ equity, excluding accumulated other comprehensive income, has increased $1.5 million to $64.1 million as of June 30, 2010. The current level of stockholders’ equity equated to a book value per share of $30.07 at June 30, 2010 as compared with $28.95 as of December 31, 2009. During the six months ended June 30, 2010 cash dividends of $0.58 per share were paid to stockholders compared to $0.48 for the comparable period of 2009. The current dividend represents an increase of 20.8% as compared to 2009 amounts. CCFNB Bancorp, Inc. remains well capitalized, with an equity-to assets ratio of 11.0% as compared to 10.8% as of December 31, 2009.

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)	2010			2009
ASSETS
Cash and due from banks	$	26,249		$	10,751
Interest-bearing deposits in other banks		32			116
Federal funds sold		2,431			592
Total cash and cash equivalents		28,712			11,459
Investment securities, available for sale, at fair value		196,953			220,266
Restricted securities, at cost		3,168			2,984
Loans,net of unearned income		344,804			330,489
Less: Allowance for loan losses		4,175			4,210
Loans, net		340,629			326,279
Premises and equipment, net		12,428			12,583
Accrued interest receivable		1,834			2,006
Cash surrender value of bank-owned life insurance		11,721			11,440
Investment in limited partnerships		1,689			687
Intangible Assets:
Core deposit		2,466			2,768
Goodwill		7,937			7,937
Prepaid FDIC assessment		1,765			2,037
Other assets		2,251			2,043
TOTAL ASSETS	$	611,553		$	602,489
LIABILITIES
Interest-bearing deposits	$	413,769		$	406,554
Noninterest-bearing deposits		58,200			55,734
Total deposits		471,969			462,288
Short-term borrowings		49,044			51,997
Long-term borrowings		10,126			15,128
Junior subordinate debentures		4,640			4,640
Accrued interest payable		732			859
Other liabilities		7,878			2,491
TOTAL LIABILITIES		544,389			537,403
STOCKHOLDERS’ EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares; issued 2,279,053 shares in 2010 and 2,270,850 shares in 2009		2,849			2,838
Surplus		27,749			27,539
Retained earnings		34,627			32,723
Accumulated other comprehensive income		3,101			2,523
Treasury stock, at cost; 45,500 shares in 2010 and 22,500shares in 2009		(1,162	)		(537	)
TOTAL STOCKHOLDERS’ EQUITY		67,164			65,086
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	611,553		$	602,489

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)	2010		2009			2010		2009
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	4,756	$	4,671		$	9,433	$	9,404
Tax-exempt		231		204			443		407
Interest and dividends on investment securities:
Taxable		1,677		2,015			3,538		4,227
Tax-exempt		100		105			205		192
Dividend and other interest income		11		11			21		37
Federal funds sold		—		1			1		6
Deposits in other banks		11		1			13		1
TOTAL INTEREST AND DIVIDEND INCOME		6,786		7,008			13,654		14,274
INTEREST EXPENSE
Deposits		1,499		1,920			3,036		3,933
Short-term borrowings		99		78			205		159
Long-term borrowings		101		150			226		287
Junior subordinate debentures		24		34			47		76
TOTAL INTEREST EXPENSE		1,723		2,182			3,514		4,455
NET INTEREST INCOME		5,063		4,826			10,140		9,819
PROVISION FOR LOAN LOSSES		160		160			470		220
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,903		4,666			9,670		9,599
NON-INTEREST INCOME
Service charges and fees		447		426			873		824
Gain on sale of loans		174		250			304		346
Earnings on bank-owned life insurance		107		114			223		217
Brokerage		73		51			162		107
Trust		168		160			339		312
Investment security losses		—		(61	)		—		(61	)
Interchange fees		213		184			408		348
Other		211		237			382		434
TOTAL NON-INTEREST INCOME		1,393		1,361			2,691		2,527
NON-INTEREST EXPENSE
Salaries		1,588		1,543			3,164		3,144
Employee benefits		427		400			898		834
Occupancy		276		254			569		561
Furniture and equipment		335		302			646		625
State shares tax		143		129			276		272
Professional fees		149		108			294		275
Director’s fees		65		70			132		141
FDIC assessments		150		366			297		438
Telecommunications		81		93			177		179
Amortization of core deposit intangible		151		168			302		336
Automated teller machine and interchange		138		115			268		242
Other		503		556			958		1,025
TOTAL NON-INTEREST EXPENSE		4,006		4,104			7,981		8,072
INCOME BEFORE INCOME TAX PROVISION		2,290		1,923			4,380		4,054
INCOME TAX PROVISION		629		372			1,179		960
NET INCOME	$	1,661	$	1,551		$	3,201	$	3,094
EARNINGS PER SHARE	$	0.74	$	0.68		$	1.43	$	1.37
CASH DIVIDENDS PER SHARE	$	0.29	$	0.24		$	0.58	$	0.48
WEIGHTED AVERAGE SHARES OUTSTANDING		2,233,227		2,256,348			2,238,305		2,255,202

See accompanying notes to the unaudited consolidated financial statements.

							Quarter Ended
(Dollars in Thousands, Except Per Share Data)	6/30/2010			3/31/2010			12/31/2009			9/30/2009			6/30/2009
Operating Highlights
Net income	$	1,661		$	1,540		$	1,322		$	1,461		$	1,551
Net interest income		5,063			5,077			5,123			4,864			4,826
Provision for loan losses		160			310			495			310			160
Non-interest income		1,393			1,298			1,252			1,286			1,361
Non-interest expense		4,006			3,975			3,926			3,916			4,104
Financial Condition Data:
Total assets	$	611,553		$	606,084		$	602,489		$	592,898		$	570,299
Loans, net		340,629			332,958			326,279			327,165			324,407
Intangibles		10,403			10,554			10,705			10,856			11,013
Total deposits
Noninterest-bearing	$	58,200		$	55,863		$	55,734		$	49,562		$	49,978
Savings		65,169			60,982			58,072			55,431			57,303
NOW		67,858			71,137			71,396			64,846			66,062
Money Market		43,242			43,925			43,465			41,743			44,303
Time Deposits		237,500			236,349			233,621			231,076			224,182
Total interest-bearing deposits		413,769			412,393			406,554			393,096			391,850
Core deposits*		234,469			231,907			228,667			211,582			217,646
Selected Ratios
Net interest margin(YTD)		3.77	%		3.80	%		3.80	%		3.77	%		3.84	%
Annualized return on average assets		1.10	%		1.02	%		0.91	%		1.01	%		1.09	%
Annualized return on average equity		9.97	%		9.30	%		8.33	%		9.31	%		9.97	%
Capital Ratios
Total risk-based capital ratio		17.79	%		17.33	%		17.62	%		17.84	%		17.80	%
Tier 1 capital ratio		16.59	%		16.20	%		16.38	%		16.65	%		16.64	%
Leverage ratio		9.76	%		9.63	%		9.82	%		9.72	%		9.71	%
Asset Quality Ratios
Non-performing assets	$	4,032		$	4,374		$	4,713		$	6,595		$	5,044
Allowance for loan losses		4,175			3,987			4,210			3,934			3,762
Allowance for loan losses to total loans		1.21	%		1.18	%		1.27	%		1.19	%		1.15	%
Allowance for loan losses to non-performing loans		103.51	%		98.56	%		89.87	%		63.30	%		80.34	%
Per Share Data
Earnings per share	$	0.74		$	0.69		$	0.59		$	0.65		$	0.68
Dividend declared per share		0.29			0.29			0.28			0.27			0.24
Book value		30.07			29.51			28.95			28.74			27.90
Common stock price:
Bid	$	26.25		$	26.55		$	26.35		$	23.25		$	21.25
Ask		27.25			28.00			27.22			24.50			21.50
Weighted average common shares		2,233,227			2,243,439			2,250,758			2,252,039			2,256,348

* Core deposits are defined as total deposits less time deposits