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

Exhibit 99

Quarterly Shareholder Brochure of CNB Corporation

May 7, 2012

Dear Shareholders,

For the first quarter 2012 CNB Corporation’s earnings were $365,000, compared to $184,000 for the first quarter 2011. The increase in income is a result of the strategy to eliminate problem assets during 2011. The challenges faced over the past 12 months had a negative impact on 2011 results; however the end result of this past year clearly demonstrated management’s commitment to make the tough decisions related to recognizing and addressing problem assets. In addition to the increase in income for the first quarter, classified assets, including “bank owned real estate,” have been reduced substantially as of the date of this letter. Management has a prudent strategy to deliver long term value for the shareholders. The increase in income and reduction in classified assets are an indication the strategy employed by management is having the anticipated effect; laying the groundwork to maintain profitability in 2012. Highlights of the Company’s financial performance for the first three months of 2012 follow:

• Assets totaled $252.1 million as of March 31, 2012, a 1.6% reduction from March 31, 2011. Assets continue to decline as a result of minimal loan demand.

• Outstanding loans were $119.7 million as of March 31, 2012, compared to $126.1 million for the same period in 2011; a reduction of 5.1%.

• Allowance for loan losses increased from $1.8 million as of March 31, 2011 to $3.8 million as of March 31, 2012. The current level of reserve is believed to be adequate to meet future potential loan losses.

• Deposits reduced marginally from $231.0 million as of March 31, 2011 to $229.6 million as of March 31, 2012 a reduction of 0.6%.

• Core earnings reflect a gain on sale of “bank owned real estate” of $400,000, a gain on the sale of securities totaling $253,000, as well as a provision for loan losses of $710,000. Both interest on deposits and non-interest expenses declined as well. The net effect was an increase in Return on Average Assets of 0.59% for the three months ended March 31, 2012; compared to 0.29% for the same period in 2011.

We are pleased the results of management’s efforts to respond to the economic downturn are beginning to translate into improvements in financial performance. Moving forward management will remain diligent in monitoring and addressing issues in the loan portfolio in order to maintain the positive momentum. On another positive note, the potential for a recovery from the recent sale of the hospital is a possibility, and if more information is available an update will be provided at the Annual Shareholders meeting on May 15, 2012. I look forward to seeing you there.

Sincerely,

Susan A. Eno

President and CEO

Consolidated Balance Sheets

(UNAUDITED)

in thousands of dollars

	March 31,
	2012			2011
ASSETS
Cash and due from banks	$	5,755		$	2,901
Interest-bearing deposits with other financial institutions		18,186			14,899
Total cash and cash equivalents		23,941			17,800
Time deposits with other financial institutions		14,054			9,791
Securities available for sale		74,076			75,392
Securities held to maturity (market value of $4,995 in 2012 and $8,546 in 2011)		4,578			8,177
Other securities		997			999
Total investment securities		79,651			84,568
Loans		119,699			126,132
Less allowance for loan losses		(3,804	)		(1,845	)
Loans, Net		115,895			124,287
Premises and equipment, net		5,160			5,398
Other assets		13,425			14,437
Total assets	$	252,126		$	256,281
LIABILITIES
Deposits
Noninterest-bearing demand	$	54,056		$	38,553
Interest-bearing deposits		175,572			192,475
Total deposits		229,628			231,028
Other liabilities		4,414			4,300
Total liabilities		234,042			235,328
SHAREHOLDERS’ EQUITY
Common Stock		3,030			3,030
Surplus		19,499			19,499
Retained Earnings and Accumulated other Comprehensive Income/(Loss)		(4,445	)		(1,576	)
Total shareholders’ equity		18,084			20,953
Total liabilities and shareholders’ equity	$	252,126		$	256,281

Consolidated Statement of Income

(Unaudited)

in thousands of dollars

Three months ended March 31,

	2012			2011		2010
INTEREST INCOME
Interest and fees on loans	$	1,855		$	1,938	$	2,234
Interest on securities:
Taxable		196			281		215
Tax exempt		86			129		145
Other interest income		55			57		59
Total interest income		2,192			2,405		2,653
INTEREST EXPENSE ON DEPOSITS		284			406		587
NET INTEREST INCOME		1,908			1,999		2,066
Provision for loan losses		710			300		225
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		1,198			1,699		1,841
NONINTEREST INCOME
Service charges and fees		232			237		246
Net realized gains from sale of loans		160			27		30
Loan servicing fees, net of amortization		2			23		20
Gain on the sale of other real estate owned		400			—		—
Gain on sale of securities		253			—		—
Other income		101			127		82
Total noninterest income		1,148			414		378
NONINTEREST EXPENSES
Salaries and benefits		1,017			962		984
Occupancy		230			264		256
FDIC insurance premiums		87			139		128
ORE losses and carrying costs		31			40		114
Other expenses		493			511		486
Total noninterest expenses		1,858			1,916		1,968
			��
INCOME BEFORE INCOME TAXES		488			197		251
Income tax expense		123			13		26
NET INCOME	$	365		$	184	$	225
BASIC NET INCOME PER SHARE	$	0.30		$	0.15	$	0.19