| Exhibit 99 |
| News Release |
| CCNE NASDAQ L I S T E D |
| Contact: | Charles R. Guarino | |
| Treasurer | ||
| (814)765-9621 | ||
| FOR IMMEDIATE RELEASE | ||
CNB FINANCIALCORPORATIONREPORTSFIRSTQUARTEREARNINGS FOR2007
Clearfield, Pennsylvania – April 23, 2007
CNB Financial Corporation, the parent company of CNB Bank, today announced reported earnings of $1.9 million or $0.22 diluted earnings per share for the quarter ended March 31, 2007, compared to $2.4 million or $0.27 diluted earnings per share for the first quarter of 2006. The 2007 first quarter results represent a 21% decrease in earnings compared to the first quarter of 2006.
The decrease in earnings results primarily from a reduction in net security gains after tax of $213,000, along with increased operating costs. The increased operating costs, which primarily include salary, benefits and occupancy expenses, have been expected as the Corporation continues to grow ERIEBANK, a division of CNB Bank, and its consumer finance subsidiary, Holiday Financial Services Corporation.
William F. Falger, President and Chief Executive Officer, commented, “Even though our earnings number is down compared to the prior year, I am encouraged by the opportunities we are creating with the growth initiatives that we have undertaken. Loan growth in all activities should create a positive earnings stream when combined with our strong net interest margin of 4.15% that should help offset the increased costs.”
| Financial Highlights (in thousands) | (Unaudited) | (Unaudited) | ||||||||||
| Consolidated Balance Sheets | 31-Mar-07 | 31-Dec-06 | 31-Mar-06 | |||||||||
| Consolidated | Consolidated | Consolidated | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 17,440 | $ | 18,530 | $ | 13,226 | ||||||
| Interest-bearing deposits | 22,661 | 7,021 | 14,959 | |||||||||
| CASH & CASH EQUIVALENTS | 40,101 | 25,551 | 28,185 | |||||||||
| Securities available for sale | 157,088 | 156,696 | 163,403 | |||||||||
| Loans held for sale | 2,972 | 2,420 | 4,547 | |||||||||
| NET LOANS | 535,820 | 540,934 | 520,833 | |||||||||
| FHLB & Federal Reserve Stock | 4,231 | 5,321 | 4,800 | |||||||||
| Premises & Equipment, Net | 16,352 | 16,237 | 13,794 | |||||||||
| Bank Owned Life Insurance | 14,615 | 14,484 | 13,964 | |||||||||
| Intangible, net | 11,611 | 11,206 | 11,931 | |||||||||
| Accrued Interest & Other Assets | 7,585 | 8,001 | 7,553 | |||||||||
| TOTAL ASSETS | $ | 790,375 | $ | 780,850 | $ | 769,010 | ||||||
| Liabilities | ||||||||||||
| Deposits | ||||||||||||
| Non-interest bearing deposits | $ | 82,558 | $ | 82,574 | $ | 80,176 | ||||||
| Interest bearing deposits | 558,649 | 548,748 | 543,583 | |||||||||
| TOTAL DEPOSITS | 641,207 | 631,322 | 623,759 | |||||||||
| Short-term borrowings | 2,000 | 2,000 | 198 | |||||||||
| Federal Home Loan Bank Advances | 55,250 | 57,885 | 58,250 | |||||||||
| Subordinated Debentures | 10,310 | 10,310 | 10,310 | |||||||||
| Accrued expenses and other liabilities | 8,569 | 7,054 | 6,499 | |||||||||
| TOTAL LIABILITIES | 717,336 | 708,571 | 699,016 | |||||||||
| Shareholders' Equity | ||||||||||||
| Common stock(1) | - | - | 9,234 | |||||||||
| Additional paid-in | 13,071 | 13,250 | 4,015 | |||||||||
| Retained earnings | 63,547 | 62,957 | 59,612 | |||||||||
| Treasury stock, at cost (359,682 shares for Mar 2007, | ||||||||||||
| 369,546 shares for Dec 2006, and | ||||||||||||
| 248,884 shares for Mar 2006) | (5,106) | (5,271) | (3,602) | |||||||||
| Accumulated other comprehensive income | 1,527 | 1,343 | 735 | |||||||||
| TOTAL SHAREHOLDERS' EQUITY | 73,039 | 72,279 | 69,994 | |||||||||
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $ | 790,375 | $ | 780,850 | $ | 769,010 | ||||||
| Nonperforming Assets | $ | 1,702 | $ | 1,928 | $ | 2,597 | ||||||
| % of Total Assets | 0.22% | 0.25% | 0.34% | |||||||||
| Trust Assets | $ | 224,932 | $ | 206,899 | $ | 197,574 | ||||||
| Consolidated Income Statement (Unaudited) | Three Months Ended | Three Months Ended | ||||||
| March 31, 2007 | March 31, 2006 | |||||||
| Interest Income | ||||||||
| Loans including fees | $ | 10,406 | $ | 9,434 | ||||
| Deposits with banks | 102 | 102 | ||||||
| Federal funds sold | 115 | 156 | ||||||
| Securities | 1,989 | 1,816 | ||||||
| TOTAL INTEREST AND DIVIDENDS | 12,612 | 11,508 | ||||||
| Interest Expense | ||||||||
| Deposits | 4,669 | 3,783 | ||||||
| Federal Home Loan Bank advances | 673 | 703 | ||||||
| Subordinated Debentures | 220 | 200 | ||||||
| Total interest expense | 5,562 | 4,686 | ||||||
| NET INTEREST INCOME | 7,050 | 6,822 | ||||||
| Provision for loan losses | 126 | 365 | ||||||
| NET INTEREST AFTER PROVISION | 6,924 | 6,457 | ||||||
| Other Income | ||||||||
| Trust income | 261 | 255 | ||||||
| Service charges on deposits | 935 | 956 | ||||||
| Other charges and fees | 182 | 149 | ||||||
| Net security gains | 13 | 341 | ||||||
| Mortgage Servicing Income | 5 | 54 | ||||||
| BOLI | 131 | 168 | ||||||
| Wealth Management | 152 | 114 | ||||||
| Other | 236 | 126 | ||||||
| TOTAL OTHER INCOME | 1,915 | 2,163 | ||||||
| Non-Interest Expenses | ||||||||
| Salaries and Benefits | 3,178 | 2,668 | ||||||
| Occupancy, net | 836 | 738 | ||||||
| Data Processing | 552 | 496 | ||||||
| Amortization of intangible | 25 | 103 | ||||||
| Director's Fees | 89 | 95 | ||||||
| Total other expenses | 1,579 | 1,342 | ||||||
| Total non-interest expenses | 6,259 | 5,442 | ||||||
| NET INCOME BEFORE TAXES | 2,580 | 3,178 | ||||||
| Federal income tax | 659 | 747 | ||||||
| NET INCOME | $ | 1,921 | $ | 2,431 | ||||
| Earnings Per Share, Fully diluted | $ | 0.22 | $ | 0.27 | ||||
| Dividends Per Share | $ | 0.15 | $ | 0.14 | ||||
| Return on Average Assets (ROA) | 1.00% | 1.30% | ||||||
| Return on Average Equity (ROE) | 10.68% | 14.28% | ||||||
(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’s website is www.bankcnb.com. |
