Exhibit 99
News Release
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| | Contact: | | Charles R. Guarino |
 | | | | Treasurer (814) 765-9621 FOR IMMEDIATE RELEASE |
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CNB FINANCIAL CORPORATION REPORTS THIRD QUARTER EARNINGSFOR 2008
Clearfield, Pennsylvania – October 24, 2008
CNB Financial Corporation today announced earnings for the third quarter and year to date 2008. Diluted earnings per share were $0.04 in the third quarter of 2008 as compared to $0.28 for the third quarter of 2007. Net income was $372 thousand in the third quarter of 2008 as compared to $2.4 million for the same period of 2007.
For the nine months ended September 30, 2008, net income totaled $4.6 million and diluted earnings per share were $0.53, compared to $6.7 million of net income and $0.77 diluted earnings per share for the nine months ended September 30, 2007. Annualized return on average assets and return on average equity for the nine months ended September 30, 2008 were 0.66% and 8.57%, respectively, compared to 1.12% and 12.54% for the same period of 2007.
William F. Falger, President and Chief Executive Officer, commented “The current economic crisis affected our financial performance during the quarter as we recorded charges against income resulting from our investments in Fannie Mae and Freddie Mac preferred stock and a corporate bond of Lehman Brothers.”
“However, we are continuing to experience strong performance from the core operations of our Company as reflected in year to date deposit growth of 22.5% and loan growth of 12.0%. Along with our balance sheet growth, we have experienced strong growth in net interest income year to date of $4.7 million, representing a 20.8% increase compared to 2007, as well as expansion of our net interest margin to 4.30% from 4.07% in 2007. Our focus in the near term is to maintain our strong credit quality as we move into what appears to be a recessionary period.”
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| Consolidated balance sheets (in thousands) | | (Unaudited)
9/30/2008 | | 12/31/2007 | | (Unaudited)
9/30/2007 |
ASSETS: | | | | | | | | | |
Cash and cash equivalents | | $ | 69,711 | | $ | 26,587 | | $ | 24,405 |
Securities, time deposits and other equity interests | | | 203,638 | | | 171,975 | | | 171,755 |
Net loans | | | 666,271 | | | 594,660 | | | 581,875 |
Premises and equipment, net | | | 23,233 | | | 19,780 | | | 18,054 |
Other assets | | | 43,897 | | | 43,306 | | | 35,706 |
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TOTAL ASSETS | | $ | 1,006,750 | | $ | 856,308 | | $ | 831,795 |
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LIABILITIES: | | | | | | | | | |
Deposits | | $ | 807,433 | | $ | 659,157 | | $ | 649,404 |
Borrowings and subordinated debentures | | | 128,827 | | | 120,620 | | | 105,620 |
Other liabilities | | | 8,411 | | | 7,248 | | | 7,280 |
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TOTAL LIABILITIES | | | 944,671 | | | 787,025 | | | 762,304 |
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SHAREHOLDERS’ EQUITY | | | 62,079 | | | 69,283 | | | 69,491 |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 1,006,750 | | $ | 856,308 | | $ | 831,795 |
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Financial results—unaudited (in thousands, except share data)
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| | | For Quarter Ended | | | Year To Date | |
| | | 9/30/08 | | | 9/30/07 | | | 9/30/08 | | | 9/30/07 | |
Net interest income | | $ | 9,140 | | | $ | 8,028 | | | $ | 27,181 | | | $ | 22,498 | |
Provision for loan losses | | | 716 | | | | 335 | | | | 1,981 | | | | 903 | |
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Net interest income after provision | | | 8,424 | | | | 7,693 | | | | 25,200 | | | | 21,595 | |
Other (loss) income | | | (864 | ) | | | 2,083 | | | | 2,532 | | | | 6,288 | |
Noninterest expenses | | | 7,283 | | | | 6,443 | | | | 21,742 | | | | 18,730 | |
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Income before income taxes | | | 277 | | | | 3,333 | | | | 5,990 | | | | 9,153 | |
Income tax benefit (expense) | | | 95 | | | | (923 | ) | | | (1,440 | ) | | | (2,439 | ) |
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NET INCOME | | $ | 372 | | | $ | 2,410 | | | $ | 4,550 | | | $ | 6,714 | |
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Earnings per share, fully diluted | | $ | 0.04 | | | $ | 0.28 | | | $ | 0.53 | | | $ | 0.77 | |
Dividends per share | | $ | 0.16 | | | $ | 0.16 | | | $ | 0.48 | | | $ | 0.46 | |
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| | | As of or for the nine months
ended September 30, 2008 | | | As of or for the nine months
ended September 30, 2007 | |
SELECTED RATIOS | | | | | | |
Net interest margin | | 4.30 | % | | 4.07 | % |
Return on: | | | | | | |
Average equity | | 8.57 | % | | 12.54 | % |
Average assets | | 0.66 | % | | 1.12 | % |
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CAPITAL RATIOS (a) | | | | | | |
Total risk-based capital ratio | | 12.25 | % | | 13.31 | % |
Tier 1 capital ratio | | 11.21 | % | | 12.25 | % |
Leverage ratio | | 8.63 | % | | 9.83 | % |
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ASSET QUALITY RATIOS | | | | | | |
Nonperforming assets to total assets | | 0.49 | % | | 0.31 | % |
Net charge-offs to average loans | | 0.15 | % | | 0.13 | % |
Allowance for loan losses to net loans | | 1.16 | % | | 1.10 | % |
| (a) | The capital ratios as of September 30, 2008 are estimated |
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.
