| Exhibit 99 |
| News Release |
| Contact: | Charles R. Guarino | |
| Treasurer | ||
| (814)765-9621 | ||
| FOR IMMEDIATE RELEASE | ||
CNB FINANCIALCORPORATIONREPORTSRECORDEARNINGS FOR2006
Clearfield, Pennsylvania – January 22, 2007
CNB Financial Corporation (Nasdaq:CCNE), the parent company of CNB Bank, today announced record annual earnings for the year ended December 31, 2006 of $9.6 million or $1.07 diluted earnings per share compared to $9.1 million or $1.00 diluted earnings per share for 2005, representing a 5.3% increase in net income and a 7.0% increase in diluted earnings per share. Net income in the fourth quarter of 2006 was $2.5 million or $0.28 diluted earnings per share compared to $2.5 million or $0.27 diluted earnings per share in the fourth quarter of 2005.
William F. Falger, President and Chief Executive Officer, commented, “We are very pleased to announce our record annual earnings which were driven by solid growth in our net interest income. Net interest income grew at a rate of 9.1% during the year resulting primarily from interest income from loans as our net loans outstanding grew at a rate of 7.1%.”
Mr. Falger also stated, “Our loan performance during 2006 was enhanced by growth in the Erie, Pennsylvania market through CNB Bank’s ERIEBANK division as well as growth in the Warren, Pennsylvania market resulting from the opening of our full service office in that community. Also, during the year we added three new offices for our consumer discount company, Holiday Financial Services, which provided additional loan growth. In addition to the loan growth, we realized deposit growth of $12.8 million, or 2.1%. Finally, we were pleased to be able to maintain our asset quality with nonperforming assets at 0.23% of year end assets compared to 0.28% at the end of 2005.”
| Financial Highlights (in thousands) (unaudited) | ||||||||
| Consolidated Balance Sheets | 31-Dec-06 | 31-Dec-05 | ||||||
| Consolidated | Consolidated | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 18,530 | $ | 19,146 | ||||
| Interest-bearing deposits | 7,021 | 23,871 | ||||||
| CASH & CASH EQUIVALENTS | 25,551 | 43,017 | ||||||
| Securities available for sale | 156,696 | 161,897 | ||||||
| Loans held for sale | 2,420 | 2,733 | ||||||
| NET LOANS | 540,934 | 505,010 | ||||||
| FHLB & Federal Reserve Stock | 5,321 | 4,789 | ||||||
| Premises & Equipment, Net | 16,237 | 13,912 | ||||||
| Bank Owned Life Insurance | 14,484 | 13,797 | ||||||
| Intangible, net | 11,206 | 11,621 | ||||||
| Accrued Interest & Other Assets | 8,001 | 7,242 | ||||||
| TOTAL ASSETS | $ | 780,850 | $ | 764,018 | ||||
| Liabilities | ||||||||
| Deposits | ||||||||
| Non-interest bearing deposits | $ | 82,574 | $ | 80,874 | ||||
| Interest bearing deposits | 548,748 | 537,629 | ||||||
| TOTAL DEPOSITS | 631,322 | 618,503 | ||||||
| Short-term borrowings | 2,000 | 2,000 | ||||||
| Other borrowings | 57,885 | 58,250 | ||||||
| Subordinated Debentures | 10,310 | 10,310 | ||||||
| Accrued expenses and other liabilities | 7,047 | 4,987 | ||||||
| TOTAL LIABILITIES | 708,564 | 694,050 | ||||||
| Shareholders' Equity | ||||||||
| Common stock(1) | - | 9,234 | ||||||
| Additional paid-in capital | 13,250 | 4,160 | ||||||
| Retained earnings | 62,957 | 58,439 | ||||||
| Treasury stock, (369,546 shares for 2006 | ||||||||
| and 209,596 shares for 2005) | (5,271) | (3,031) | ||||||
| Accumulated other comprehensive income | 1,350 | 1,166 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 72,286 | 69,968 | ||||||
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 780,850 | $ | 764,018 | ||||
| Nonperforming Assets | $1,800 | $ | 2,108 | |||||
| % of Total Assets | 0.23% | 0.28% | ||||||
| Trust Assets | $ | 206,899 | $ | 179,738 | ||||
| Consolidated Income Statement | For Quarter Ended | Year To Date | ||||||||||||||
| 31-Dec-06 | 31-Dec-05 | 31-Dec-06 | 31-Dec-05 | |||||||||||||
| Interest Income | ||||||||||||||||
| Loans including fees | $ | 10,688 | $ | 9,071 | $ | 40,475 | $ | 34,193 | ||||||||
| Deposits with banks | 114 | 92 | 437 | 316 | ||||||||||||
| Federal funds sold | 28 | 162 | 293 | 394 | ||||||||||||
| Securities | 2,092 | 1,770 | 7,944 | 6,981 | ||||||||||||
| TOTAL INTEREST AND DIVIDENDS | 12,922 | 11,095 | 49,149 | 41,884 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Deposits | 4,673 | 3,547 | 17,106 | 12,633 | ||||||||||||
| Other borrowings | 732 | 735 | 2,881 | 2,637 | ||||||||||||
| Subordinated Debentures | 225 | 190 | 866 | 685 | ||||||||||||
| Total interest expense | 5,630 | 4,472 | 20,853 | 15,955 | ||||||||||||
| NET INTEREST INCOME | 7,292 | 6,623 | 28,296 | 25,929 | ||||||||||||
| Provision for loan losses | 292 | 237 | 1,371 | 783 | ||||||||||||
| NET INTEREST AFTER PROVISION | 7,000 | 6,386 | 26,925 | 25,146 | ||||||||||||
| Other Income | ||||||||||||||||
| Trust income | 328 | 279 | 1,077 | 977 | ||||||||||||
| Service charges on deposits | 1,052 | 1,078 | 4,160 | 4,060 | ||||||||||||
| Other charges and fees | 182 | 132 | 644 | 512 | ||||||||||||
| Net security gains (losses) | (5) | 259 | 338 | 322 | ||||||||||||
| Loss on other-than-temporarily impaired security | -- | -- | -- | (240) | ||||||||||||
| Mortgage Banking Income | 25 | -- | 145 | 76 | ||||||||||||
| BOLI | 162 | 136 | 687 | 615 | ||||||||||||
| Wealth Management | 131 | 114 | 519 | 533 | ||||||||||||
| Other | 167 | 81 | 588 | 291 | ||||||||||||
| TOTAL OTHER INCOME | 2,042 | 2,079 | 8,158 | 7,146 | ||||||||||||
| Non-Interest Expenses | ||||||||||||||||
| Salaries & Benefits | 2,885 | 2,610 | 11,053 | 10,022 | ||||||||||||
| Occupancy, net | 747 | 682 | 2,854 | 2,714 | ||||||||||||
| Data Processing | 529 | 442 | 2,010 | 1,641 | ||||||||||||
| Amortization of intangible | 104 | 94 | 415 | 330 | ||||||||||||
| Director's Fees | 66 | 53 | 395 | 471 | ||||||||||||
| Total other expenses | 1,308 | 1,248 | 5,384 | 4,987 | ||||||||||||
| Total non-interest expenses | 5,639 | 5,129 | 22,111 | 20,165 | ||||||||||||
| NET INCOME BEFORE TAXES | 3,403 | 3,336 | 12,972 | 12,127 | ||||||||||||
| Federal income tax | 890 | 874 | 3,350 | 2,989 | ||||||||||||
| NET INCOME | $ | 2,513 | $ | 2,462 | $ | 9,622 | $ | 9,138 | ||||||||
| Diluted Earnings Per Share | $ | 0.28 | $ | 0.27 | $ | 1.07 | $ | 1.00 | ||||||||
| Dividends Per Share | $ | 0.15 | $ | 0.14 | $ | 0.57 | $ | 0.55 | ||||||||
| Return on Average Assets (ROA) | 1.26% | 1.23% | ||||||||||||||
| Return on Average Equity (ROE) | 13.51% | 13.42% | ||||||||||||||
(1) On April 18, 2006, the shareholders of the Corporation voted to change from $1.00 par value to no par stock. The change had no effect on the dollar amount of total shareholder’s equity and simply resulted in a reclassification between the common stock and additional paid in capital line items.
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 competitive conditions; and other risks and uncertainties.
CNB Bank websites can be found atwww.bankcnb.com andwww.eriebank.net
