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

Press Release – For Immediate Release

November 2, 2012

CCFNB Bancorp, Inc. Reports Third 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 third quarter of 2012.

Net income, as reported under U.S. Generally Accepted Accounting Principles, for the nine months ended September 30, 2012 was $5,461,000 compared to $5,078,000 for the same period in 2011. Earnings per share for the nine months ended September 30, 2012 and 2011 were $2.48 and $2.28, respectively. Annualized return on average assets and return on average equity were 1.17% and 9.96% for the nine months ended September 30, 2012 as compared to 1.09% and 9.74% for the same period of 2011.

The net interest margin, tax effected, on interest earning assets was 3.52% as of September 30, 2012 as compared to 3.56% as of September 30, 2011.

Total assets increased $19.4 million to $644.1 million at September 30, 2012 from $624.7 million at December 31, 2011. Since the end of 2011, investment securities decreased $8.8 million while net loans increased 3.2% or $11.0 million. Total deposits increased $7.3 million while short term borrowings increased $14.5 million since the end of 2011.

When compared to December 31, 2011, Stockholders’ equity, excluding accumulated other comprehensive income, has increased $2.8 million to $72.0 million as of September 30, 2012. The current level of stockholders’ equity equated to a book value per share of $33.87 at September 30, 2012 as compared with $32.28 as of December 31, 2011. For the nine months ended September 30, 2012 cash dividends of $0.97 per share were paid to stockholders compared to $0.93 for the comparable period of 2011. CCFNB Bancorp, Inc. remains well capitalized, with an equity-to-assets ratio of 11.6 % 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)
	September 30,			December 31,
(In Thousands)	2012			2011
ASSETS
Cash and due from banks	$	9,401		$	9,632
Interest-bearing deposits in other banks		45,098			26,699
Federal funds sold		1,797			1,845
Total cash and cash equivalents		56,296			38,176
Investment securities, available for sale, at fair value		187,226			196,345
Restricted securities, at cost		3,222			2,900
Loans held for sale		3,763			5,164
Loans, net of unearned income		357,017			345,674
Less: Allowance for loan losses		5,694			5,383
Loans, net		351,323			340,291
Premises and equipment, net		12,043			11,740
Accrued interest receivable		1,778			1,328
Cash surrender value of bank-owned life insurance		14,852			14,413
Investment in limited partnerships		1,288			1,455
Intangible Assets:
Core deposit		1,312			1,639
Goodwill		7,937			7,937
Prepaid FDIC assessment		934			1,146
Other assets		2,119			2,143
TOTAL ASSETS	$	644,093		$	624,677
LIABILITIES
Interest-bearing deposits	$	406,643		$	397,045
Noninterest-bearing deposits		83,017			85,334
Total deposits		489,660			482,379
Short-term borrowings		72,818			58,288
Long-term borrowings		4,114			6,118
Accrued interest payable		370			497
Other liabilities		2,709			5,980
TOTAL LIABILITIES		569,671			553,262
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 15,000,000 shares, issued  2,311,881 shares in 2012; and 2,300,987 shares in 2011		2,890			2,876
Surplus		28,797			28,421
Retained earnings		43,745			40,418
Accumulated other comprehensive income		2,469			2,260
Treasury stock, at cost; 114,400 shares in 2012 and 88,900 shares in 2011		(3,479	)		(2,560	)
TOTAL STOCKHOLDERS' EQUITY		74,422			71,415
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	644,093		$	624,677

CCFNB Bancorp, Inc.

Consolidated Statements of Income

(Unaudited)

	For the Three Months Ended				For the Nine Months Ended
(In Thousands, Except Per Share Data)	September 30,				September 30,
	2012		2011		2012			2011
INTEREST AND DIVIDEND INCOME
Interest and fees on loans:
Taxable	$	4,348	$	4,363	$	12,925		$	13,227
Tax-exempt		279		288		835			853
Interest and dividends on investment securities:
Taxable		825		1,220		2,849			4,038
Tax-exempt		178		148		517			413
Dividend and other interest income		17		13		48			38
Federal funds sold		-		-		1			1
Deposits in other banks		19		22		44			49
TOTAL INTEREST AND DIVIDEND INCOME		5,666		6,054		17,219			18,619
INTEREST EXPENSE
Deposits		754		1,118		2,447			3,550
Short-term borrowings		45		75		164			233
Long-term borrowings		31		40		107			119
Junior subordinate debentures		-		28		-			76
TOTAL INTEREST EXPENSE		830		1,261		2,718			3,978
NET INTEREST INCOME		4,836		4,793		14,501			14,641
PROVISION FOR LOAN LOSSES		305		30		365			440
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		4,531		4,763		14,136			14,201
NON-INTEREST INCOME
Service charges and fees		371		419		1,110			1,272
Gain on sale of loans		468		188		1,208			555
Earnings on bank-owned life insurance		122		103		381			318
Brokerage		106		80		331			208
Trust		167		148		467			555
Investment security (losses) gains		-		-		(17	)		3
Gain on sale of premises and equipment		-		-		-			489
Interchange fees		267		232		783			691
Other		277		250		811			746
TOTAL NON-INTEREST INCOME		1,778		1,420		5,074			4,837
NON-INTEREST EXPENSE
Salaries		1,638		1,606		4,882			4,879
Employee benefits		406		503		1,479			1,616
Occupancy		265		248		783			807
Furniture and equipment		274		327		865			955
State shares tax		160		151		485			445
Professional fees		161		160		488			464
Director's fees		65		88		192			221
FDIC assessments		80		51		239			305
Telecommunications		58		60		185			222
Amortization of core deposit intangible		108		125		326			428
Automated teller machine and interchange		132		173		498			488
Other		625		490		1,513			1,379
TOTAL NON-INTEREST EXPENSE		3,972		3,982		11,935			12,209
INCOME BEFORE INCOME TAX PROVISION		2,337		2,201		7,275			6,829
INCOME TAX PROVISION		573		573		1,814			1,751
NET INCOME	$	1,764	$	1,628	$	5,461		$	5,078
EARNINGS PER SHARE	$	0.80	$	0.73	$	2.48		$	2.28
CASH DIVIDENDS PER SHARE	$	0.33	$	0.31	$	0.97		$	0.93
WEIGHTED AVERAGE SHARES OUTSTANDING		2,197,306		2,226,139		2,202,034			2,226,711

	Quarter Ended
(Dollars in Thousands, Except Per Share Data)	9/30/2012			6/30/2012			3/31/2012			12/31/2011			9/30/2011
Operating Highlights
Net income	$	1,764		$	1,879		$	1,818		$	1,698		$	1,628
Net interest income		4,836			4,894			4,771			4,741			4,793
Provision for loan losses		305			30			30			380			30
Non-interest income		1,778			1,702			1,594			1,503			1,420
Non-interest expense		3,972			4,052			3,911			3,601			3,982
Financial Condition Data:
Total assets	$	644,093		$	613,819		$	631,223		$	624,677		$	625,789
Loans, net		351,323			348,820			338,497			340,291			339,437
Intangibles		9,249			9,358			9,467			9,576			9,701
Total deposits
Noninterest-bearing	$	83,017		$	77,963		$	81,828		$	85,334		$	78,549
Savings		74,492			75,296			76,120			72,865			67,062
NOW		74,442			78,079			79,987			74,811			75,374
Money Market		50,417			47,296			46,090			44,104			44,537
Time Deposits		207,292			200,534			199,151			205,265			212,864
Total interest-bearing deposits		406,643			401,205			401,348			397,045			399,837
Core deposits*		282,368			278,634			284,025			277,114			265,522
Selected Ratios
Net interest margin(YTD)		3.52	%		3.55	%		3.47	%		3.52	%		3.56	%
Annualized return on average assets		1.17	%		1.20	%		1.17	%		1.09	%		1.09	%
Annualized return on average equity		9.96	%		10.19	%		10.10	%		9.68	%		9.74	%
Capital Ratios
Total risk-based capital ratio		19.86	%		19.63	%		18.81	%		18.17	%		19.59	%
Tier 1 capital ratio		18.61	%		18.37	%		17.53	%		16.92	%		18.33	%
Leverage ratio		10.15	%		10.20	%		9.89	%		9.61	%		10.28	%
Asset Quality Ratios
Non-performing assets	$	4,213		$	4,583		$	5,298		$	5,240		$	3,933
Allowance for loan losses		5,694			5,429			5,419			5,383			5,158
Allowance for loan losses to total loans		1.58	%		1.52	%		1.56	%		1.54	%		1.50	%
Allowance for loan losses to non-performing loans		132.82	%		118.47	%		104.20	%		102.80	%		131.13	%
Per Share Data
Earnings per share	$	0.80		$	0.86		$	0.82		$	0.77		$	0.73
Dividend declared per share		0.33			0.33			0.31			0.31			0.31
Book value		33.87			33.31			32.75			32.28			31.90
Common stock price:
Bid	$	35.70		$	35.05		$	35.40		$	32.00		$	32.60
Ask		39.00			35.40			35.65			37.50			38.00
Weighted average common shares		2,197,306			2,201,890			2,206,959			2,217,760			2,226,139

* Core deposits are defined as total deposits less time deposits