Exhibit 99
News Release
| | | | | | |
 | | | | Contact: | | Charles R. Guarino Treasurer (814) 765-9621 |
| | | | | | FOR IMMEDIATE RELEASE |
CNB FINANCIAL CORPORATION REPORTS EARNINGSFOR 2009
Clearfield, Pennsylvania – January 27, 2010
CNB Financial Corporation (NASDAQ: CCNE), the parent company of CNB Bank, today announced earnings for the fourth quarter of 2009 and for the year ended December 31, 2009. Highlights include the following:
| | • | | Net income of $1.5 million, or $0.18 per share, in the fourth quarter of 2009, compared to net income of $1.8 million, or $0.21 per share, in the fourth quarter of 2008. |
| | • | | Net income of $8.5 million, or $0.98 per share, for the year ended December 31, 2009, representing a 62.6% increase over 2008. |
| | • | | Returns on average equity and assets of 12.84% and 0.80%, respectively, for the year ended December 31, 2009. |
| | • | | Net interest margin of 3.82% for the year ended December 31, 2009. |
| | • | | Increase in other income, excluding other-than-temporary impairment charges, of $3.7 million from 2008 to 2009. The carrying value of impaired securities is $2.5 million as of December 31, 2009. |
| | • | | Deposits of $956.9 million at December 31, 2009, an increase of 17.5% over December 31, 2008. |
| | • | | Loans outstanding of $705.3 million at December 31, 2009, an increase of 5.9% over December 31, 2008. |
| | • | | Increased loan loss reserve level of 1.37% at December 31, 2009 compared to 1.30% at December 31, 2008. |
| | • | | Nonperforming asset levels increased to 1.17% of total assets at December 31, 2009 compared to 0.42% at December 31, 2008. |
| | • | | Growth in the annual dividend rate of 2.3%. |
Joseph B. Bower, Jr., President and CEO, commented, “We are very pleased with our deposit growth in 2009 of 17.5% along with 23.6% in 2008. In addition, our loan growth within our markets of 5.9% was very positive considering the stressed conditions of the current economy. With this growth in our total assets, we have also experienced some growth in our net interest income. Finally, the Corporation has continued to maintain a quality loan portfolio, especially when compared to our peers, which positions us well going into 2010.”
Consolidated balance sheets (in thousands)
| | | | | | |
| | | (Unaudited) | | |
| | | 12/31/09 | | 12/31/2008 |
ASSETS: | | | | | | |
Cash and cash equivalents | | $ | 22,358 | | $ | 31,256 |
Securities, time deposits and other equity interests | | | 359,665 | | | 250,511 |
Net loans, including loans held for sale | | | 705,347 | | | 666,169 |
Premises and equipment, net | | | 22,656 | | | 23,578 |
Other assets | | | 51,565 | | | 45,004 |
| | | | | | |
TOTAL ASSETS | | $ | 1,161,591 | | $ | 1,016,518 |
| | | | | | |
| | |
LIABILITIES: | | | | | | |
Deposits | | $ | 956,858 | | $ | 814,596 |
Borrowings and subordinated debentures | | | 122,003 | | | 128,817 |
Other liabilities | | | 13,321 | | | 10,638 |
| | | | | | |
TOTAL LIABILITIES | | | 1,092,182 | | | 954,051 |
| | |
SHAREHOLDERS’ EQUITY | | | 69,409 | | | 62,467 |
| | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 1,161,591 | | $ | 1,016,518 |
| | | | | | |
Financial results - unaudited (in thousands, except share data)
| | | | | | | | | | | | |
| | | For Quarter Ended | | Year To Date |
| | | 12/31/09 | | (As restated)
12/31/08 | | 12/31/09 | | 12/31/08 |
Net interest income | | $ | 9,348 | | $ | 9,419 | | $ | 37,402 | | $ | 36,600 |
Provision for loan losses | | | 1,501 | | | 1,806 | | | 4,465 | | | 3,787 |
| | | | | | | | | | | | |
| | | | |
Net interest income after provision | | | 7,847 | | | 7,613 | | | 32,937 | | | 32,813 |
Other income, excluding other-than-temporary impairment charges | | | 2,115 | | | 1,958 | | | 10,145 | | | 6,453 |
Other-than-temporary impairment charges | | | 1,232 | | | 283 | | | 2,443 | | | 3,963 |
Noninterest expenses | | | 7,138 | | | 7,059 | | | 29,791 | | | 28,801 |
| | | | | | | | | | | | |
| | | | |
Income before income taxes | | | 1,592 | | | 2,229 | | | 10,848 | | | 6,502 |
Income tax expense | | | 43 | | | 428 | | | 2,336 | | | 1,267 |
| | | | | | | | | | | | |
NET INCOME | | $ | 1,549 | | $ | 1,801 | | $ | 8,512 | | $ | 5,235 |
| | | | | | | | | | | | |
| | | | |
Earnings per share, fully diluted | | $ | 0.18 | | $ | 0.21 | | $ | 0.98 | | $ | 0.61 |
Dividends per share | | $ | 0.165 | | $ | 0.165 | | $ | 0.66 | | $ | 0.645 |
Management restated its financial results for the three month period ended December 31, 2008 due to differences associated with certain assumptions used in the evaluation of a structured pooled trust preferred security for other-than-temporary impairment. However, the Corporation’s net income for the year ended December 31, 2008 was not misstated since the revision only involved the timing of the recognition of an other-than-temporary impairment charge of $1,717,000 between the third and fourth quarters of 2008.
| | | | | | |
| | | As of or for the year ended
December 31, 2009 | | | As of or for the year ended
December 31, 2008 | |
SELECTED RATIOS | | | | | | |
Net interest margin | | 3.82 | % | | 4.33 | % |
Return on: | | | | | | |
Average equity | | 12.84 | % | | 7.88 | % |
Average assets | | 0.80 | % | | 0.55 | % |
| | |
CAPITAL RATIOS (a) | | | | | | |
Total risk-based capital ratio | | 11.89 | % | | 12.00 | % |
Tier 1 capital ratio | | 10.64 | % | | 10.80 | % |
Leverage ratio | | 7.87 | % | | 8.40 | % |
| | |
ASSET QUALITY RATIOS | | | | | | |
Nonperforming assets to total assets | | 1.17 | % | | 0.42 | % |
Net charge-offs to average loans | | 0.49 | % | | 0.28 | % |
Allowance for loan losses to net loans | | 1.37 | % | | 1.30 | % |
| (a) | The capital ratios as of December 31, 2009 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.
