CNB (CNBZ) 8-K Quarterly Shareholder Brochure of CNB Corporation

Exhibit 99

Quarterly Shareholder Brochure of CNB Corporation

May 18, 2009

Dear Shareholders,

The following provides you a summary of performance for the quarter ending March 31, 2009.

The Corporation’s total assets grew slightly to $263 million, when compared to $262 million for March 31, 2008. The ongoing recession contributed to the loan demand decline of $7.8 million, or 4.4%, in the first quarter over the same period in 2008. Deposit growth was strong for the first quarter increasing by $7.3 million, or 3.1%. Net income for first quarter at $322,000, or $0.27 basic earnings per share, was down over 2008 due primarily to increased FDIC insurance premiums and a further security impairment write-down of $37,000, or $0.03 per share, on the underlying preferred shares received from one of the bank’s money market preferred investments.

The FDIC insurance premium paid by the bank in the first quarter increased by almost $100,000, or $0.08 per share, over the same period last year and is projected to be nearly $400,000, or $0.33 per share, for second quarter. The projected second quarter increase is the result of an emergency special assessment announced by the FDIC in March to replenish the fund following the failures of FDIC-insured institutions.

In consideration of these factors, as well as the capital impact of 2008 year-end net losses due to investment securities write-downs and the provision for loan losses, the board of directors voted not to pay a dividend for the first quarter 2009. The board of directors does reassess the dividend each quarter taking into account earnings performance as well as the economic outlook which, based on the ongoing economic challenges, are expected to continue impacting both the loan and investment portfolios.

In closing, I would like to announce that after 29 years as a director of both CNB Corporation and Citizens National Bank, John L. Ormsbee will retire at the May 19 annual meeting of shareholders. It has been an honor to work with John during his tenure and on behalf of the directors and staff I want to thank him for his service and wish him all the best.

Sincerely,

Susan A. Eno
President & CEO

Consolidated Balance Sheets
(UNAUDITED)
in thousands of dollars

	March 31,
	2009			2008
ASSETS
Cash and due from banks	$	7,001		$	5,660
Interest-bearing deposits with other financial institutions		5,001			5,020
Federal funds sold		11,205			19,635
Total cash and cash equivalents		23,207			30,315
Time deposits with other financial institutions		5,737
Securities available for sale		40,617			33,680
Securities held to maturity (market value of $10,935 in 2009 and $8,630 in 2008)		10,390			8,463
Other securities		1,008			1,008
Total investment securities		52,015			43,151
Loans		168,385			176,198
Less allowance for loan losses		(2,172	)		(1,795	)
Loans, Net		166,213			174,403
Premises and equipment, net		6,100			6,233
Other assets		9,973			8,246
Total assets	$	263,245		$	262,348
LIABILITIES
Deposits
Noninterest-bearing demand	$	36,193		$	34,828
Interest-bearing deposits		203,824			197,904
Total deposits		240,017			232,732
Other liabilities		5,500			5,092
Total liabilities		245,517			237,824
SHAREHOLDERS’ EQUITY
Common Stock		3,034			3,034
Surplus		19,509			19,509
Retained Earnings and Accumulated other Comprehensive Income/(Loss)		(4,815	)		1,981
Total shareholders’ equity		17,728			24,524
Total liabilities and shareholders’ equity	$	263,245		$	262,348

Consolidated Statement of Income
(Unaudited)

in thousands of dollars
Three months ended March 31,

	2008			2008		2007
INTEREST INCOME
Interest and fees on loans	$	2,597		$	3,122	$	3,132
Interest on securities:
Taxable		419			497		427
Tax exempt		129			132		127
Other interest income		62			137		243
Total interest income		3,207			3,888		3,929
INTEREST EXPENSE ON DEPOSITS		989			1,345		1,468
NET INTEREST INCOME		2,218			2,543		2,461
Provision for loan losses		275			431		69
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		1,943			2,112		2,392
NONINTEREST INCOME
Service charges and fees		264			279		273
Net realized gains from sale of loans		88			37		31
Loan servicing fees, net of amortization		(48	)		23		18
Other income		77			61		58
Total noninterest income		381			400		380
NONINTEREST EXPENSES
Salaries and benefits		1,045			1,149		1,063
Occupancy		290			292		311
Supplies		36			41		52
Securities impairment write-down		37			0		0
Other expenses		542			461		463
Total noninterest expenses		1,950			1,943		1,889
INCOME BEFORE INCOME TAXES		374			569		883
Income tax expense		52			102		253
NET INCOME	$	322		$	467	$	630
BASIC NET INCOME PER SHARE	$	0.27		$	0.38	$	0.51