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

Press Release — For Immediate Release

January 25, 2011

CCFNB Bancorp, Inc. Reports Fourth Quarter 2010 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 Fourth quarter of 2010.

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the three months ended December 31, 2010 was $1,417,000 compared to $1,322,000 for the same period in 2009. On a year to date basis, consolidated net income for the year-ended December 31, 2010 was $6,304,000 compared to $5,877,000 for the same period in 2009. Earnings per share for the three months ended December 31, 2010 and 2009 were $.63 and $.59, respectively. Annualized return on average assets and return on average equity were 0.93% and 8.41% for the three months ended December 31, 2010 as compared to 0.91% and 8.33% for the same period of 2009. On a 2010 year-to-date basis, the return on average assets and return on average equity were 1.03% and 9.35%, respectively. 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 3.68% as of December 31, 2010 as compared to 3.80% as of December 31, 2009.

Total assets increased $11.8 million to $614.3 million at December 31, 2010 from $602.5 million at December 31, 2009. Since the end of 2009, net loans increased $9.3 million, an increase of 2.87%. Total deposits increased $11.5 million while short term borrowings increased $6.8 million since the end of 2009. Long term borrowings decreased $9.0 million since the end of 2009.

When compared to December 31, 2009, Stockholders’ equity, excluding accumulated other comprehensive income, has increased $3.0 million to $65.6 million as of December 31, 2010. The current level of stockholders’ equity equated to a book value per share of $30.52 at December 31, 2010 as compared with $28.95 as of December 31, 2009. During the year-ended December 31, 2010 cash dividends of $1.18 per share were paid to stockholders compared to $1.03 for the comparable period of 2009. The current dividend represents an increase of 14.6% as compared to 2009 amounts. CCFNB Bancorp, Inc. remains well capitalized, with an equity to assets ratio of 11.1% 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)
	December 31,			December 31,
(In Thousands)	2010			2009
ASSETS
Cash and due from banks	$	7,263		$	8,922
Interest-bearing deposits in other banks		18,683			1,945
Federal funds sold		1,649			592
Total cash and cash equivalents		27,595			11,459
Investment securities, available for sale, at fair value		207,173			220,266
Restricted securities, at cost		3,012			2,984
Loans, net of unearned income		340,453			330,489
Less: Allowance for loan losses		4,801			4,210
Loans, net		335,652			326,279
Premises and equipment, net		11,992			12,583
Accrued interest receivable		1,632			2,006
Cash surrender value of bank-owned life insurance		11,942			11,440
Investment in limited partnerships		1,607			687
Intangible Assets:
Core deposit		2,192			2,768
Goodwill		7,937			7,937
Prepaid FDIC assessment		1,490			2,037
Other assets		2,075			2,043
TOTAL ASSETS	$	614,299		$	602,489
LIABILITIES
Interest-bearing deposits	$	410,915		$	406,554
Noninterest-bearing deposits		62,877			55,734
Total deposits		473,792			462,288
Short-term borrowings		58,759			51,997
Long-term borrowings		6,123			15,128
Junior subordinate debentures		4,640			4,640
Accrued interest payable		652			859
Other liabilities		2,479			2,491
TOTAL LIABILITIES		546,445			537,403
STOCKHOLDERS’ EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000 shares; issued 2,286,931 shares in 2010 and 2,270,850 shares in 2009		2,859			2,838
Surplus		27,964			27,539
Retained earnings		36,397			32,723
Accumulated other comprehensive income		2,221			2,523
Treasury stock, at cost; 61,000 shares in 2010 and 22,500 shares in 2009		(1,587	)		(537	)
TOTAL STOCKHOLDERS’ EQUITY		67,854			65,086
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	614,299		$	602,489

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

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31
(In Thousands, Except Per Share Data)	2010			2009			2010			2009
INTEREST AND DIVIDEND INCOME				��
Interest and fees on loans:
Taxable	$	4,581		$	4,839		$	18,662		$	18,925
Tax-exempt		269			206			963			828
Interest and dividends on investment securities:
Taxable		1,526			1,967			6,668			8,162
Tax-exempt		95			114			397			429
Dividend and other interest income		11			10			42			58
Federal funds sold		1			(1	)		2			10
Deposits in other banks		15			7			42			8
TOTAL INTEREST AND DIVIDEND INCOME		6,498			7,142			26,776			28,420
INTEREST EXPENSE
Deposits		1,352			1,703			5,809			7,478
Short-term borrowings		117			114			427			368
Long-term borrowings		39			178			349			640
Junior subordinate debentures		24			24			98			128
TOTAL INTEREST EXPENSE		1,532			2,019			6,683			8,614
NET INTEREST INCOME		4,966			5,123			20,093			19,806
PROVISION FOR LOAN LOSSES		685			495			1,555			1,025
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,281			4,628			18,538			18,781
NON-INTEREST INCOME
Service charges and fees		450			453			1,778			1,704
Gain on sale of loans		355			259			1,113			806
Earnings on bank-owned life insurance		119			121			444			445
Brokerage		79			91			325			281
Trust		156			193			663			655
Investment security losses		(42	)		(314	)		(42	)		(385	)
Interchange fees		226			201			850			743
Other		306			248			992			816
TOTAL NON-INTEREST INCOME		1,649			1,252			6,123			5,065
NON-INTEREST EXPENSE
Salaries		1,656			1,538			6,447			6,314
Employee benefits		387			260			1,811			1,492
Occupancy		278			252			1,114			1,062
Furniture and equipment		328			328			1,330			1,272
State shares tax		143			129			561			529
Professional fees		128			140			595			587
Director’s fees		71			69			274			284
FDIC assessments		150			377			610			920
Telecommunications		110			84			385			347
Amortization of core deposit intangible		134			151			576			643
Automated teller machine and interchange		148			132			560			509
Other		390			466			1,768			1,955
TOTAL NON-INTEREST EXPENSE		3,923			3,926			16,031			15,914
INCOME BEFORE INCOME TAX PROVISION		2,007			1,954			8,630			7,932
INCOME TAX PROVISION		590			632			2,326			2,055
NET INCOME	$	1,417		$	1,322		$	6,304		$	5,877
EARNINGS PER SHARE	$	0.63		$	0.59		$	2.82		$	2.61
CASH DIVIDENDS PER SHARE	$	0.30		$	0.28		$	1.18		$	1.03
WEIGHTED AVERAGE SHARES OUTSTANDING		2,223,709			2,250,758			2,232,239			2,253,087

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	12/31/2010			9/30/2010			6/30/2010			3/31/2010			12/31/2009
Operating Highlights
Net income	$	1,417		$	1,686		$	1,661		$	1,540		$	1,322
Net interest income		4,966			4,987			5,063			5,077			5,123
Provision for loan losses		685			400			160			310			495
Non-interest income		1,649			1,783			1,393			1,298			1,252
Non-interest expense		3,923			4,127			4,006			3,975			3,926
Financial Condition Data:
Total assets	$	614,299		$	615,788		$	611,553		$	606,084		$	602,489
Loans, net		335,652			335,733			340,629			332,958			326,279
Intangibles		10,129			10,263			10,403			10,554			10,705
Total deposits
Noninterest-bearing	$	62,877		$	62,133		$	58,200		$	55,863		$	55,734
Savings		65,549			64,601			65,169			60,982			58,072
NOW		70,953			68,265			67,858			71,137			71,396
Money Market		42,130			41,654			43,242			43,925			43,465
Time Deposits		232,283			234,270			237,500			236,349			233,621
Total interest-bearing deposits		410,915			408,790			413,769			412,393			406,554
Core deposits*		241,509			236,653			234,469			231,907			228,667
Selected Ratios
Net interest margin(YTD)		3.68	%		3.72	%		3.77	%		3.80	%		3.80	%
Annualized return on average assets		0.93	%		1.11	%		1.10	%		1.02	%		0.91	%
Annualized return on average equity		8.41	%		10.06	%		9.97	%		9.30	%		8.33	%
Capital Ratios
Total risk-based capital ratio		18.49	%		18.16	%		17.79	%		17.33	%		17.62	%
Tier 1 capital ratio		17.24	%		16.91	%		16.59	%		16.20	%		16.38	%
Leverage ratio		10.00	%		9.90	%		9.76	%		9.63	%		9.82	%
Asset Quality Ratios
Non-performing assets	$	4,148		$	4,104		$	4,032		$	4,374		$	4,713
Allowance for loan losses		4,801			4,574			4,175			3,987			4,210
Allowance for loan losses to total loans		1.41	%		1.34	%		1.21	%		1.18	%		1.27	%
Allowance for loan losses to non-performing loans		115.75	%		111.45	%		103.51	%		98.56	%		89.87	%
Per Share Data
Earnings per share	$	0.63		$	0.76		$	0.74		$	0.69		$	0.59
Dividend declared per share		0.30			0.30			0.29			0.29			0.28
Book value		30.52			30.42			30.07			29.51			28.95
Common stock price:
Bid	$	28.00		$	26.30		$	26.25		$	26.55		$	26.35
Ask		31.00			29.50			27.25			28.00			27.22
Weighted average common shares		2,223,709			2,228,836			2,233,227			2,243,439			2,250,758

* Core deposits are defined as total deposits less time deposits