CCFNB Bancorp (CCFN) 8-K CCFNB Bancorp, Inc. Reports Second Quarter 2011 Earnings

Press Release – For Immediate Release

August 2, 2011

CCFNB Bancorp, Inc. Reports Second Quarter 2011 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 2011.

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the six months ended June 30, 2011 was $3,450,000 compared to $3,201,000 for the same period in 2010.  Earnings per share for the six months ended June 30, 2011 and 2010 were $1.55 and $1.43, respectively.  Annualized return on average assets and return on average equity were 1.11% and 10.02% for the six months ended June 30, 2011 as compared to 1.10% and 9.97% for the same period of 2010. The return on average assets and return on average equity were 1.03% and 9.35% for the year ended December 31, 2010.

The net interest margin, tax effected, on interest earning assets was 3.58% as of June 30, 2011 as compared to 3.77% as of June 30, 2010.

Total assets decreased $14.7 million to $599.6 million at June 30, 2011 from $614.3 million at December 31, 2010.  The decrease in total assets resulted primarily from the completed sale of the Hazleton branch office on June 24, 2011 pursuant to a previously announced Purchase and Assumption Agreement dated March 25, 2011.  Premises and equipment with a book value of $779 thousand and deposits amounting to $17.7 million were sold as part of the branch office sale.  Since the end of 2010, net loans increased $5.1 million, an increase of 1.5%.  No loans were sold as a result of the Hazleton branch office transaction.  Without the affect of the Hazleton branch office sale, total deposits increased $8.3 million while short term borrowings decreased $7.6 million since the end of 2010.

When compared to December 31, 2010, Stockholders’ equity, excluding accumulated other comprehensive income, has increased $2.2 million to $67.8 million as of June 30, 2011. The current level of stockholders’ equity equated to a book value per share of $31.59 at June 30, 2011 as compared with $30.48 as of December 31, 2010.  During the six months ended June 30, 2011 cash dividends of $0.62 per share were paid to stockholders compared to $0.58 for the same period of 2010. The current dividend represents an increase of 6.9 % as compared to 2010 amounts.  CCFNB Bancorp, Inc. remains well capitalized, with an equity-to assets ratio of 11.7 % as compared to 11.0 % as of December 31, 2010.

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)	2011			2010
ASSETS
Cash and due from banks	$	9,210		$	7,263
Interest-bearing deposits in other banks		12,525			18,683
Federal funds sold		2,174			1,649
Total cash and cash equivalents		23,909			27,595
Investment securities, available for sale, at fair value		192,044			207,173
Restricted securities, at cost		2,722			3,012
Loans, net of unearned income		345,959			340,453
Less: Allowance for loan losses		5,211			4,801
Loans, net		340,748			335,652
Premises and equipment, net		11,154			11,992
Accrued interest receivable		1,570			1,632
Cash surrender value of bank-owned life insurance		12,201			11,942
Investment in limited partnerships		1,531			1,607
Intangible Assets:
Core deposit		1,889			2,192
Goodwill		7,937			7,937
Prepaid FDIC assessment		1,259			1,490
Other assets		2,582			2,075
TOTAL ASSETS	$	599,546		$	614,299
LIABILITIES
Interest-bearing deposits	$	399,377		$	410,915
Noninterest-bearing deposits		65,028			62,877
Total deposits		464,405			473,792
Short-term borrowings		51,129			58,759
Long-term borrowings		6,121			6,123
Junior subordinate debentures		4,640			4,640
Accrued interest payable		558			652
Other liabilities		2,279			2,479
TOTAL LIABILITIES		529,132			546,445
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized
5,000,000 shares; issued  2,294,332 shares
in 2011 and 2,286,931 shares in 2010		2,868			2,859
Surplus		28,195			27,964
Retained earnings		38,467			36,397
Accumulated other comprehensive income		2,615			2,221
Treasury stock, at cost; 65,000 shares in 2011 and 61,000 shares in 2010		(1,731	)		(1,587	)
TOTAL STOCKHOLDERS' EQUITY		70,414			67,854
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	599,546		$	614,299

CCFNB Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

(In Thousands, Except Per Share Data)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2011		2010		2011		2010
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	4,416	$	4,756	$	8,864	$	9,433
Tax-exempt		285		231		565		443
Interest and dividends on investment securities:
Taxable		1,361		1,677		2,818		3,538
Tax-exempt		139		100		265		205
Dividend and other interest income		14		11		25		21
Federal funds sold		-		-		1		1
Deposits in other banks		18		11		27		13
TOTAL INTEREST AND DIVIDEND INCOME		6,233		6,786		12,565		13,654
INTEREST EXPENSE
Deposits		1,208		1,499		2,432		3,036
Short-term borrowings		74		99		158		205
Long-term borrowings		40		101		79		226
Junior subordinate debentures		24		24		48		47
TOTAL INTEREST EXPENSE		1,346		1,723		2,717		3,514
NET INTEREST INCOME		4,887		5,063		9,848		10,140
PROVISION FOR LOAN LOSSES		330		160		410		470
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		4,557		4,903		9,438		9,670
NON-INTEREST INCOME
Service charges and fees		439		447		853		873
Gain on sale of loans		206		174		367		304
Earnings on bank-owned life insurance		107		107		215		223
Brokerage		68		73		128		162
Trust		191		168		407		339
Investment security gains		3		-		3		-
Gain on sale of premises and equipment		489		-		489		-
Interchange fees		240		213		459		408
Other		246		211		496		382
TOTAL NON-INTEREST INCOME		1,989		1,393		3,417		2,691
NON-INTEREST EXPENSE
Salaries		1,616		1,588		3,273		3,164
Employee benefits		528		427		1,113		898
Occupancy		261		276		559		569
Furniture and equipment		327		335		628		646
State shares tax		151		143		294		276
Professional fees		151		149		304		294
Director's fees		65		65		133		132
FDIC assessments		105		150		254		297
Telecommunications		79		81		162		177
Amortization of core deposit intangible		176		151		303		302
Automated teller machine and interchange		164		138		315		268
Other		460		503		889		958
TOTAL NON-INTEREST EXPENSE		4,083		4,006		8,227		7,981
INCOME BEFORE INCOME TAX PROVISION		2,463		2,290		4,628		4,380
INCOME TAX PROVISION		623		629		1,178		1,179
NET INCOME	$	1,840	$	1,661	$	3,450	$	3,201
EARNINGS PER SHARE	$	0.83	$	0.74	$	1.55	$	1.43
CASH DIVIDENDS PER SHARE	$	0.31	$	0.29	$	0.62	$	0.58
WEIGHTED AVERAGE SHARES OUTSTANDING		2,227,801		2,233,227		2,227,002		2,238,305

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	6/30/2011			3/31/2011			12/31/2010			9/30/2010			6/30/2010
Operating Highlights
Net income	$	1,840		$	1,610		$	1,417		$	1,686		$	1,661
Net interest income		4,887			4,961			4,966			4,987			5,063
Provision for loan losses		330			80			685			400			160
Non-interest income		1,989			1,428			1,649			1,783			1,393
Non-interest expense		4,083			4,144			3,923			4,127			4,006
Financial Condition Data:
Total assets	$	599,546		$	620,106		$	614,299		$	615,788		$	611,553
Loans, net		340,748			338,523			335,652			335,733			340,629
Intangibles		9,826			10,002			10,129			10,263			10,403
Total deposits
Noninterest-bearing	$	65,028		$	65,574		$	62,877		$	62,133		$	58,200
Savings		67,976			67,983			65,549			64,601			65,169
NOW		72,212			69,902			70,953			68,265			67,858
Money Market		44,458			48,816			42,130			41,654			43,242
Time Deposits		214,731			230,192			232,283			234,270			237,500
Total interest-bearing deposits		399,377			416,893			410,915			408,790			413,769
Core deposits*		249,674			252,275			241,509			236,653			234,469
Selected Ratios
Net interest margin(YTD)		3.58	%		3.68	%		3.68	%		3.72	%		3.77	%
Annualized return on average assets		1.11	%		1.04	%		0.93	%		1.11	%		1.10	%
Annualized return on average equity		10.02	%		9.44	%		8.41	%		10.06	%		9.97	%
Capital Ratios
Total risk-based capital ratio		19.25	%		18.68	%		18.49	%		18.16	%		17.79	%
Tier 1 capital ratio		18.01	%		17.43	%		17.24	%		16.91	%		16.59	%
Leverage ratio		10.17	%		10.13	%		10.00	%		9.90	%		9.76	%
Asset Quality Ratios
Non-performing assets	$	3,510		$	3,435		$	4,148		$	4,104		$	4,032
Allowance for loan losses		5,211			4,859			4,801			4,574			4,175
Allowance for loan losses to total loans		1.51	%		1.42	%		1.41	%		1.34	%		1.21	%
Allowance for loan losses to
non-performing loans		148.45	%		141.43	%		115.75	%		111.45	%		103.51	%
Per Share Data
Earnings per share	$	0.83		$	0.72		$	0.63		$	0.76		$	0.74
Dividend declared per share		0.31			0.31			0.30			0.30			0.29
Book value		31.59			30.74			30.48			30.42			30.07
Common stock price:
Bid	$	34.00		$	30.75		$	28.00		$	26.30		$	26.25
Ask		36.55			34.00			31.00			29.50			27.25
Weighted average common shares		2,227,801			2,226,195			2,223,709			2,228,836			2,233,227

* Core deposits are defined as total deposits less time deposits