CCFNB Bancorp (CCFN) 8-K CCFNB Bancorp, Inc. Reports Second Quarter 2012 Earnings

Press Release – For Immediate Release

August 7, 2012

CCFNB Bancorp, Inc. Reports Second Quarter 2012 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 2012.

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the six months ended June 30, 2012 was $3,697,000 compared to $3,450,000 for the same period in 2011. Earnings per share for the six months ended June 30, 2012 and 2011 were $1.68 and $1.55, respectively. Annualized return on average assets and return on average equity were 1.20% and 10.19% for the six months ended June 30, 2012 as compared to 1.11% and 10.02% for the same period of 2011.

The net interest margin, tax effected, on interest earning assets was 3.55% as of June 30, 2012 as compared to 3.58% as of June 30, 2011.

Total assets decreased $10.9 million to $613.8 million at June 30, 2012 from $624.7 million at December 31, 2011. Since the end of 2011, investment securities decreased $6.9 million while net loans increased 1.7% or $5.9 million. Total deposits decreased $3.2 million while short term borrowings decreased $4.3 million since the end of 2011.

When compared to December 31, 2011, Stockholders’ equity, excluding accumulated other comprehensive income, has increased $1.7 million to $70.9 million as of June 30, 2012. The current level of stockholders’ equity equated to a book value per share of $33.31 at June 30, 2012 as compared with $32.28 as of December 31, 2011. For the six months ended June 30, 2012 cash dividends of $0.64 per share were paid to stockholders compared to $0.62 for the comparable period of 2011. CCFNB Bancorp, Inc. remains well capitalized, with an equity-to assets ratio of 11.9 % as compared to 11.4% at December 31, 2011.

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)	2012			2011
ASSETS
Cash and due from banks	$	8,880		$	9,632
Interest-bearing deposits in other banks		16,129			26,699
Federal funds sold		2,820			1,845
Total cash and cash equivalents		27,829			38,176
Investment securities, available for sale, at fair value		189,435			196,345
Restricted securities, at cost		3,065			2,900
Loans held for sale		2,551			5,164
Loans, net of unearned income		354,249			345,674
Less: Allowance for loan losses		5,429			5,383
Loans, net		348,820			340,291
Premises and equipment, net		12,164			11,740
Accrued interest receivable		1,314			1,328
Cash surrender value of bank-owned life insurance		14,729			14,413
Investment in limited partnerships		1,343			1,455
Intangible Assets:
Core deposit		1,421			1,639
Goodwill		7,937			7,937
Prepaid FDIC assessment		1,005			1,146
Other assets		2,206			2,143
TOTAL ASSETS	$	613,819		$	624,677
LIABILITIES
Interest-bearing deposits	$	401,205		$	397,045
Noninterest-bearing deposits		77,963			85,334
Total deposits		479,168			482,379
Short-term borrowings		54,011			58,288
Long-term borrowings		5,115			6,118
Accrued interest payable		404			497
Other liabilities		1,942			5,980
TOTAL LIABILITIES		540,640			553,262
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 15,000,000 shares, issued  2,308,245 shares in 2012; and 2,300,987 shares in 2011		2,885			2,876
Surplus		28,672			28,421
Retained earnings		42,706			40,418
Accumulated other comprehensive income		2,287			2,260
Treasury stock, at cost; 111,400 shares in 2012 and 88,900 shares in 2011		(3,371	)		(2,560	)
TOTAL STOCKHOLDERS' EQUITY		73,179			71,415
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	613,819		$	624,677

CCFNB Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

	For the Three Months Ended					For the Six Months Ended
(In Thousands, Except Per Share Data)	June 30,					June 30,
	2012			2011		2012			2011
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	4,337		$	4,416	$	8,577		$	8,864
Tax-exempt		274			285		556			565
Interest and dividends on investment securities:
Taxable		968			1,361		2,024			2,818
Tax-exempt		172			139		339			265
Dividend and other interest income		16			14		31			25
Federal funds sold		1			-		1			1
Deposits in other banks		7			18		25			27
TOTAL INTEREST AND DIVIDEND INCOME		5,775			6,233		11,553			12,565
INTEREST EXPENSE
Deposits		805			1,208		1,693			2,432
Short-term borrowings		40			74		119			158
Long-term borrowings		36			40		76			79
Junior subordinate debentures		-			24		-			48
TOTAL INTEREST EXPENSE		881			1,346		1,888			2,717
NET INTEREST INCOME		4,894			4,887		9,665			9,848
PROVISION FOR LOAN LOSSES		30			330		60			410
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,864			4,557		9,605			9,438
NON-INTEREST INCOME
Service charges and fees		371			439		739			853
Gain on sale of loans		367			206		740			367
Earnings on bank-owned life insurance		133			107		259			215
Brokerage		127			68		225			128
Trust		151			191		300			407
Investment security (losses) gains		(17	)		3		(17	)		3
Gain on sale of premises and equipment		-			489		-			489
Interchange fees		264			240		516			459
Other		306			246		534			496
TOTAL NON-INTEREST INCOME		1,702			1,989		3,296			3,417
NON-INTEREST EXPENSE
Salaries		1,638			1,616		3,244			3,273
Employee benefits		528			528		1,073			1,113
Occupancy		256			261		518			559
Furniture and equipment		313			327		591			628
State shares tax		165			151		325			294
Professional fees		164			151		327			304
Director's fees		64			65		127			133
FDIC assessments		79			105		159			254
Telecommunications		63			79		127			162
Amortization of core deposit intangible		109			176		218			303
Automated teller machine and interchange		181			164		366			315
Other		492			460		888			889
TOTAL NON-INTEREST EXPENSE		4,052			4,083		7,963			8,227
INCOME BEFORE INCOME TAX PROVISION		2,514			2,463		4,938			4,628
INCOME TAX PROVISION		635			623		1,241			1,178
NET INCOME	$	1,879		$	1,840	$	3,697		$	3,450
EARNINGS PER SHARE	$	0.86		$	0.83	$	1.68		$	1.55
CASH DIVIDENDS PER SHARE	$	0.33		$	0.31	$	0.64		$	0.62
WEIGHTED AVERAGE SHARES OUTSTANDING		2,201,890			2,227,801		2,204,424			2,227,002

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	6/30/2012			3/31/2012			12/31/2011			9/30/2011			6/30/2011
Operating Highlights
Net income	$	1,879		$	1,818		$	1,698		$	1,628		$	1,840
Net interest income		4,894			4,771			4,741			4,793			4,887
Provision for loan losses		30			30			380			30			330
Non-interest income		1,702			1,594			1,503			1,420			1,989
Non-interest expense		4,052			3,911			3,601			3,982			4,083
Financial Condition Data:
Total assets	$	613,819		$	631,223		$	624,677		$	625,789		$	599,546
Loans, net		348,820			338,497			340,291			339,437			340,748
Intangibles		9,358			9,467			9,576			9,701			9,826
Total deposits
Noninterest-bearing	$	77,963		$	81,828		$	85,334		$	78,549		$	65,028
Savings		75,296			76,120			72,865			67,062			67,976
NOW		78,079			79,987			74,811			75,374			72,212
Money Market		47,296			46,090			44,104			44,537			44,458
Time Deposits		200,534			199,151			205,265			212,864			214,731
Total interest-bearing deposits		401,205			401,348			397,045			399,837			399,377
Core deposits*		278,634			284,025			277,114			265,522			249,674
Selected Ratios
Net interest margin(YTD)		3.55	%		3.47	%		3.52	%		3.56	%		3.58	%
Annualized return on average assets		1.20	%		1.17	%		1.09	%		1.09	%		1.11	%
Annualized return on average equity		10.19	%		10.10	%		9.68	%		9.74	%		10.02	%
Capital Ratios
Total risk-based capital ratio		19.63	%		18.81	%		18.17	%		19.59	%		19.25	%
Tier 1 capital ratio		18.37	%		17.53	%		16.92	%		18.33	%		18.01	%
Leverage ratio		10.20	%		9.89	%		9.61	%		10.28	%		10.17	%
Asset Quality Ratios
Non-performing assets	$	4,583		$	5,298		$	5,240		$	3,933		$	3,510
Allowance for loan losses		5,429			5,419			5,383			5,158			5,211
Allowance for loan losses to total loans		1.52	%		1.56	%		1.54	%		1.50	%		1.51	%
Allowance for loan losses to non-performing loans		118.47	%		104.20	%		102.80	%		131.13	%		148.45	%
Per Share Data
Earnings per share	$	0.86		$	0.82		$	0.77		$	0.73		$	0.83
Dividend declared per share		0.33			0.31			0.31			0.31			0.31
Book value		33.31			32.75			32.28			31.90			31.59
Common stock price:
Bid	$	35.05		$	35.40		$	32.00		$	32.60		$	34.00
Ask		35.40			35.65			37.50			38.00			36.55
Weighted average common shares		2,201,890			2,206,959			2,217,760			2,226,139			2,227,801

* Core deposits are defined as total deposits less time deposits