CCNE | | Contact: Charles R. Guarino |
NASDAQ | | Treasurer |
L I S T E D | | (814) 765-9621 |
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| | FOR IMMEDIATE RELEASE |
CNB FINANCIALCORPORATIONREPORTSSECONDQUARTEREARNINGS FOR2007
Clearfield, Pennsylvania – July, 2007
CNB Financial Corporation, the parent company of CNB Bank, today announced reported earnings of $2.4 million or $0.27 diluted earnings per share for the quarter ended June 30, 2007, compared to $2.3 million or $0.26 diluted earnings per share for the same quarter of 2006.
William F. Falger, President and Chief Executive Officer, commented, “We are pleased with our second quarter performance which yielded earning asset growth of 5.0% and an increase of 4.4% in net interest income year to date. In addition, our net interest margin remains strong at 4.19% despite the continuing difficult interest rate environment. These positives have helped offset increased operating expenses associated with our ongoing expansion activities in our ERIEBANK and Holiday Financial Services businesses.”
Financial Highlights (in thousands) | | | | (Unaudited) | | | | | | (Unaudited) |
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Consolidated Balance Sheets | | | | 30-Jun-07 | | 31-Dec-06 | | | | 30-Jun-06 |
| | Consolidated | | Consolidated | | | | Consolidated |
Assets | | | | | | | | | | |
Cash and due from banks | | $ | | 17,316 | | $ 18,530 | | $ | | 16,341 |
Interest-bearing deposits | | | | 7,913 | | 7,021 | | | | 17,951 |
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CASH & CASH EQUIVALENTS | | | | 25,229 | | 25,551 | | | | 34,292 |
Securities available for sale | | | | 166,484 | | 156,696 | | | | 161,304 |
Loans held for sale | | | | 2,767 | | 2,420 | | | | 2,603 |
NET LOANS | | | | 565,393 | | 540,934 | | | | 525,830 |
FHLB stock & other equity interests | | | | 5,195 | | 5,321 | | | | 5,206 |
Premises & equipment, net | | | | 16,870 | | 16,237 | | | | 14,565 |
Bank owned life insurance | | | | 14,823 | | 14,484 | | | | 14,135 |
Intangible, net | | | | 11,156 | | 11,206 | | | | 11,414 |
Accrued interest & other assets | | | | 8,699 | | 8,001 | | | | 7,608 |
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TOTAL ASSETS | | $ | | 816,616 | | $ 780,850 | | $ | | 776,957 |
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Liabilities | | | | | | | | | | |
Deposits | | | | | | | | | | |
Non-interest bearing deposits | | $ | | 89,386 | | $ 82,574 | | $ | | 79,382 |
Interest bearing deposits | | | | 558,571 | | 548,748 | | | | 543,677 |
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TOTAL DEPOSITS | | | | 647,957 | | 631,322 | | | | 623,059 |
Short-term borrowings | | | | 11,145 | | 2,000 | | | | 854 |
Other borrowings | | | | 63,000 | | 57,885 | | | | 67,000 |
Subordinated debentures | | | | 20,620 | | 10,310 | | | | 10,310 |
Accrued expenses and other liab. | | | | 5,462 | | 7,054 | | | | 5,646 |
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TOTAL LIABILITIES | | | | 748,184 | | 708,571 | | | | 706,869 |
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Shareholders' Equity | | | | | | | | | | |
Common stock | | | | - | | - | | | | - |
Additional paid-in | | | | 13,058 | | 13,250 | | | | 13,269 |
Retained earnings | | | | 64,601 | | 62,957 | | | | 60,689 |
Treasury stock, at cost (676,619 shares for June 2007, | | | | | | | | | | |
369,546 shares for Dec 2006, and | | | | | | | | | | |
275,725 shares for June 2006) | | | | (9,944) | | (5,271) | | | | (3,987) |
Accumulated other comprehensive income | | | | 717 | | 1,343 | | | | 117 |
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TOTAL SHAREHOLDERS' EQUITY | | | | 68,432 | | 72,279 | | | | 70,088 |
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TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | | $ | | 816,616 | | 780,850 | | $ | | 776,957 |
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Nonperforming Assets | | $ | | 1,763 | | 1,928 | | $ | | 2,064 |
% of Total Assets | | | | 0.22% | | 0.25% | | | | 0.27% |
Trust Assets | | $ | | 230,307 | | 206,899 | | $ | | 194,454 |
Consolidated Income Statement | | For Quarter Ended | | | | Year To Date |
| | 30-Jun-07 | | 30-Jun-06 | | 30-Jun-07 | | 30-Jun-06 |
Interest Income | | | | | | | | | | | | |
Loans including fees | | $ 11,024 | | $ | | 10,110 | | $ 21,430 | | $ | | 19,544 |
Deposits with banks | | 125 | | | | 107 | | 227 | | | | 209 |
Federal funds sold | | 83 | | | | 62 | | 198 | | | | 218 |
Securities | | 2,121 | | | | 2,016 | | 4,110 | | | | 3,832 |
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TOTAL INTEREST AND DIVIDENDS | | 13,353 | | | | 12,295 | | 25,965 | | | | 23,803 |
Interest Expense | | | | | | | | | | | | |
Deposits | | 4,648 | | | | 4,177 | | 9,317 | | | | 7,960 |
Federal Home Loan Bank advances | | 761 | | | | 729 | | 1,434 | | | | 1,432 |
Subordinated debentures | | 383 | | | | 213 | | 603 | | | | 413 |
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TOTAL INTEREST EXPENSE | | 5,792 | | | | 5,119 | | 11,354 | | | | 9,805 |
NET INTEREST INCOME | | 7,561 | | | | 7,176 | | 14,611 | | | | 13,998 |
Provision for loan losses | | 442 | | | | 390 | | 568 | | | | 755 |
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NET INTEREST AFTER PROVISION | | 7,119 | | | | 6,786 | | 14,043 | | | | 13,243 |
Other Income | | | | | | | | | | | | |
Trust income | | 277 | | | | 249 | | 538 | | | | 504 |
Service charges on deposits | | 1,034 | | | | 1,038 | | 1,969 | | | | 1,994 |
Other charges and fees | | 218 | | | | 141 | | 400 | | | | 290 |
Net security gains (losses) | | 22 | | | | - | | 35 | | | | 341 |
Mortgage banking income | | 33 | | | | 43 | | 38 | | | | 97 |
BOLI earnings | | 208 | | | | 170 | | 339 | | | | 338 |
Wealth management | | 155 | | | | 159 | | 307 | | | | 273 |
Other | | 194 | | | | 133 | | 430 | | | | 259 |
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TOTAL OTHER INCOME | | 2,141 | | | | 1,933 | | 4,056 | | | | 4,096 |
Non-Interest Expenses | | | | | | | | | | | | |
Salaries & benefits | | 2,965 | | | | 2,675 | | 6,143 | | | | 5,343 |
Occupancy, net | | 777 | | | | 664 | | 1,613 | | | | 1,402 |
Data processing | | 570 | | | | 541 | | 1,122 | | | | 1,037 |
Amortization of intangible | | 25 | | | | 104 | | 50 | | | | 207 |
Director's fees | | 64 | | | | 123 | | 153 | | | | 218 |
Total other expenses | | 1,619 | | | | 1,408 | | 3,198 | | | | 2,750 |
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Total non-interest expenses | | 6,020 | | | | 5,515 | | 12,279 | | | | 10,957 |
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NET INCOME BEFORE TAXES | | 3,240 | | | | 3,204 | | 5,820 | | | | 6,382 |
Federal income tax | | 858 | | | | 869 | | 1,517 | | | | 1,616 |
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NET INCOME | | $ 2,382 | | $ | | 2,335 | | $ 4,303 | | $ | | 4,766 |
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Earnings Per Share, Fully diluted | | $ 0.27 | | $ | | 0.26 | | $ 0.49 | | $ | | 0.53 |
Dividends Per Share | | $ 0.15 | | $ | | 0.14 | | $ 0.30 | | $ | | 0.28 |
Return on Average Assets (ROA) | | 1.20% | | | | 1.22% | | 1.10% | | | | 1.26% |
Return on Average Equity (ROE) | | 12.92% | | | | 13.17% | | 11.95% | | | | 13.66% |
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 websites can be found at www.bankcnb.com and www.eriebank.net. The Holiday Financial Services website is www.holidayfinancialservices.com.