Exhibit 99
News Release
 | Contact: | Charles R. Guarino | ||
| Treasurer | ||||
| (814) 765-9621 | ||||
| FOR IMMEDIATE RELEASE | ||||
CNB FINANCIAL CORPORATION REPORTS EARNINGSFOR 2008
Clearfield, Pennsylvania – February 11, 2009
CNB Financial Corporation (NASDAQ: CCNE), the parent company of CNB Bank, today announced annual earnings for the year ended December 31, 2008 of $5.2 million or $0.61 diluted earnings per share compared to $9.1 million or $1.05 diluted earnings per share for 2007, representing a 42.7% decrease in net income and a 41.9% decrease in diluted earnings per share. Net income in the fourth quarter of 2008 was $685 thousand or $0.08 diluted earnings per share compared to $2.4 million or $0.28 diluted earnings per share in the fourth quarter of 2007.
Earnings for the year and for the fourth quarter were negatively impacted by other-than-temporary impairment charges associated with certain investments. These after tax charges totaled $2.6 million for the year, or $0.30 per share, and $1.3 million in the fourth quarter, or $0.15 per share. Excluding these charges, earnings for the year would have been $7.8 million, or $0.91 per share, and $2.0 million, or $0.23 per share, in the fourth quarter.
The Corporation also increased its provision for loan losses during 2008 by $2.3 million, which resulted in a year end ratio of allowance for loan losses to net loans of 1.30%. The ratio of nonperforming assets to total assets was 0.42% at December 31, 2008, compared to 0.34% at December 31, 2007.
Consolidated balance sheets (in thousands) (unaudited)
| 12/31/2008 | 12/31/2007 | |||||
ASSETS: | ||||||
Cash and cash equivalents | $ | 31,256 | $ | 26,587 | ||
Securities, time deposits and other equity interests | 250,511 | 171,975 | ||||
Net loans | 662,837 | 594,660 | ||||
Premises and equipment, net | 23,578 | 19,780 | ||||
Other assets | 48,312 | 43,306 | ||||
TOTAL ASSETS | $ | 1,016,494 | $ | 856,308 | ||
LIABILITIES: | ||||||
Deposits | $ | 814,596 | $ | 659,157 | ||
Borrowings and subordinated debentures | 128,817 | 120,620 | ||||
Other liabilities | 10,614 | 7,248 | ||||
TOTAL LIABILITIES | 954,027 | 787,025 | ||||
SHAREHOLDERS’ EQUITY | 62,467 | 69,283 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,016,494 | $ | 856,308 | ||
Financial results - unaudited (in thousands, except share data)
| For Quarter Ended | Year To Date | |||||||||||||
| 12/31/08 | 12/31/07 | 12/31/08 | 12/31/07 | |||||||||||
Net interest income | $ | 9,419 | $ | 8,513 | $ | 36,600 | $ | 31,011 | ||||||
Provision for loan losses | 1,806 | 609 | 3,787 | 1,512 | ||||||||||
Net interest income after provision | 7,613 | 7,904 | 32,813 | 29,499 | ||||||||||
Other income | (42 | ) | 1,901 | 2,490 | 8,189 | |||||||||
Noninterest expenses | 7,059 | 6,544 | 28,801 | 25,273 | ||||||||||
Income before income taxes | 512 | 3,261 | 6,502 | 12,415 | ||||||||||
Income tax benefit (expense) | 173 | 840 | (1,267 | ) | 3,281 | |||||||||
NET INCOME | $ | 685 | $ | 2,421 | $ | 5,235 | $ | 9,134 | ||||||
Earnings per share, fully diluted | $ | 0.08 | $ | 0.28 | $ | 0.61 | $ | 1.05 | ||||||
Dividends per share | $ | 0.165 | $ | 0.16 | $ | 0.645 | $ | 0.62 | ||||||
| As of or for the twelve months ended December 31, 2008 | As of or for the twelve months ended December 31, 2007 | |||||
SELECTED RATIOS | ||||||
Net interest margin | 4.22 | % | 4.27 | % | ||
Return on: | ||||||
Average equity | 7.39 | % | 12.82 | % | ||
Average assets | 0.56 | % | 1.12 | % | ||
CAPITAL RATIOS (a) | ||||||
Total risk-based capital ratio | 12.09 | % | 12.91 | % | ||
Tier 1 capital ratio | 10.88 | % | 11.89 | % | ||
Leverage ratio | 8.40 | % | 9.74 | % | ||
ASSET QUALITY RATIOS | ||||||
Nonperforming assets to total assets | 0.42 | % | 0.34 | % | ||
Net charge-offs to average loans | 0.28 | % | 0.14 | % | ||
Allowance for loan losses to net loans | 1.30 | % | 1.13 | % | ||
| (a) | The capital ratios as of December 31, 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 iswww.bankcnb.com.