1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________ to _____________
Commission file number 0-19028
CCFNB BANCORP, INC.
(Name of small business Issuer in its charter)
PENNSYLVANIA 23-2254643
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
232 East Street, Bloomsburg, PA 17815
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (570) 784-4400
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the
issuer was required to file such reports), and (2) has been subject to
such filing requirings for the past 90 days.
Yes X No ___
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date.
1,351,554 shares of $1.25 (par) common stock were outstanding as of July
25, 2000.
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CCFNB BANCORP, INC. AND SUBSIDIARY
JUNE 30, 2000
INDEX 10-Q
EXHIBIT 27 - FINANCIAL DATA SCHEDULE NO PAGE
#
PART I - FINANCIAL INFORMATION:
- Consolidated Balance Sheets 1
- Consolidated Statements of Income 2
- Consolidated Statements of Cash Flows 3
- Notes to Consolidated Financial Statements 4 - 10
- Report of Independent Certified Public Accountants 11
- Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations 12 - 18
PART II - OTHER INFORMATION 19
SIGNATURES 20
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CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
UNAUDITED
JUNE DECEMBER
30, 2000 31, 1999
-------- --------
ASSETS
Cash and due from banks....................................... $ 4,872 $ 5,855
Interest-bearing deposits with other banks.................... 229 217
Investment securities:
Securities Available-for-Sale............................... 46,788 48,904
Securities to be Held-to-Maturity (estimated
fair value 1999, $200).................................... 0 200
Loans, net of unearned income................................. 133,603 134,423
Allowance for loan losses..................................... 1,031 985
-------- --------
Net loans................................................... $132,572 $133,438
Premises and equipment........................................ 5,096 5,274
Accrued interest receivable................................... 1,002 1,002
Other assets.................................................. 1,501 1,232
-------- --------
TOTAL ASSETS............................................. $192,060 $196,122
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-interest bearing........................................ $ 14,943 $ 13,672
Interest bearing............................................ 125,293 124,934
-------- --------
Total Deposits........................................... $140,236 $138,606
Short-term borrowings......................................... 18,080 30,881
Long-term borrowings.......................................... 9,339 2,343
Accrued interest and other expenses........................... 1,103 1,231
Other liabilities............................................. 16 14
-------- --------
TOTAL LIABILITIES........................................ $168,774 $173,075
-------- --------
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000
shares; issued 1,355,454 shares in 2000 and
1,367,651 shares in 1999.................................... $ 1,694 $ 1,710
Surplus....................................................... 5,289 5,483
Retained earnings............................................. 17,594 17,014
Accumulated other comprehensive income (loss)................. (1,291) (1,160)
-------- --------
TOTAL STOCKHOLDERS' EQUITY............................... $ 23,286 $ 23,047
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............... $192,060 $196,122
======== ========
See accompanying notes to Consolidated Financial Statements.
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CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT PER SHARE DATA)
UNAUDITED
FOR THE SIX FOR THE THREE
MONTHS ENDING MONTHS ENDING
JUNE 30, JUNE 30,
-------- --------
2000 1999 2000 1999
---- ---- ---- ----
INTEREST INCOME
Interest and fees on loans:
Taxable ...................................... $ 5,174 $ 4,638 $ 2,615 $ 2,343
Tax-exempt ................................... 63 60 32 30
Interest and dividends on investment securities:
Taxable interest ............................. 991 981 489 506
Tax-exempt interest .......................... 363 334 181 162
Dividends .................................... 42 39 21 19
Interest on federal funds sold ................. 0 30 0 16
Interest on deposits in other banks ............ 8 113 5 58
---------- ---------- ---------- ----------
TOTAL INTEREST INCOME ..................... $ 6,641 $ 6,195 $ 3,343 $ 3,134
---------- ---------- ---------- ----------
INTEREST EXPENSE
Interest on deposits ........................... $ 2,517 $ 2,466 $ 1,271 $ 1,242
Interest on short-term borrowings .............. 577 465 266 229
Interest on long-term borrowings ............... 205 64 121 32
---------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE .................... $ 3,299 $ 2,995 $ 1,658 $ 1,503
---------- ---------- ---------- ----------
Net interest income ............................ $ 3,342 $ 3,200 $ 1,685 $ 1,631
Provision for loan losses ...................... 39 39 19 19
---------- ---------- ---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES .................................. $ 3,303 $ 3,161 $ 1,666 $ 1,612
---------- ---------- ---------- ----------
NON-INTEREST INCOME
Service charges and fees ....................... $ 295 $ 298 $ 147 $ 164
Trust department income ........................ 82 85 49 52
Securities gains - net ......................... 0 31 0 0
Other income ................................... 123 109 79 58
---------- ---------- ---------- ----------
TOTAL NON-INTEREST INCOME ................. $ 500 $ 523 $ 275 $ 274
---------- ---------- ---------- ----------
NON-INTEREST EXPENSES
Salaries and wages ............................. $ 1,012 $ 937 $ 514 $ 474
Pensions and other employee benefits ........... 330 316 163 156
Occupancy expense, net ......................... 170 169 83 81
Furniture and equipment expense ................ 312 293 156 153
Other operating expenses ....................... 712 690 373 335
---------- ---------- ---------- ----------
TOTAL NON-INTEREST EXPENSES ............... $ 2,536 $ 2,405 $ 1,289 $ 1,199
---------- ---------- ---------- ----------
Income before income taxes ..................... $ 1,267 $ 1,279 $ 652 $ 687
Income tax expense ............................. 306 320 156 179
---------- ---------- ---------- ----------
NET INCOME ................................. $ 961 $ 959 $ 496 $ 508
========== ========== ========== ==========
PER SHARE DATA
Net income ..................................... $ .71 $ .70 $ .36 $ .37
Cash dividends ................................. .28 .246 .14 .13
Weighted average shares outstanding ............ 1,362,569 1,376,395 1,362,569 1,376,395
See accompanying notes to Consolidated Financial Statements.
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CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED
FOR THE SIX MONTHS
ENDING JUNE 30,
---------------
2000 1999
---- ----
OPERATING ACTIVITIES
Net income............................................................. $ 961 $ 959
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for loan losses........................................... 39 39
Provision for depreciation and amortization......................... 270 266
Premium amortization on investment securities....................... 18 46
Discount accretion on investment securities......................... (8) (13)
(Gain) on sales of investment securities Available-for-Sale......... 0 (31)
Deferred income taxes (benefit)..................................... (17) 5
(Gain) on sale of other real estate................................. 0 (2)
(Increase) in accrued interest receivable and other assets.......... (181) (352)
(Decrease) in accrued interest, other expenses and other
liabilities....................................................... (126) (26)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES......................... $ 956 $ 891
-------- --------
INVESTING ACTIVITIES
Proceeds from sales, maturities and redemptions of investment
securities Available-for-Sale........................................ $ 1,904 $ 9,109
Proceeds from maturities and redemptions of Held-to-Maturity
investment securities................................................ 200 365
Purchase of investment securities Available-for-Sale................... 0 (14,343)
Net (increase) decrease in loans....................................... 827 (2,620)
Purchases of premises and equipment.................................... (92) (75)
Proceeds from sale of other real estate................................ 0 26
-------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES............... $ 2,839 $ (7,538)
-------- --------
FINANCING ACTIVITIES
Net increase in deposits............................................... $ 1,630 $ 1,877
Net (decrease) in short-term borrowings................................ (12,801) (696)
Net increase in long-term borrowings................................... 6,996 24
Proceeds from issuance of common stock................................. 82 75
Acquisition of treasury stock.......................................... (292) (25)
Proceeds from sale of treasury stock................................... 0 13
Cash dividends paid.................................................... (381) (338)
-------- --------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES............... $ (4,766) $ 930
-------- --------
(DECREASE) IN CASH AND CASH EQUIVALENTS........................... $ (971) $ (5,717)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD....................... 6,072 12,486
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD....................... $ 5,101 $ 6,769
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest............................................................. $ 3,350 $ 2,994
Income taxes......................................................... $ 333 $ 317
See accompanying notes to Consolidated Financial Statements.
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CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of CCFNB Bancorp, Inc. and
Subsidiary (the "Corporation") are in accordance with generally
accepted accounting principles and conform to common practices
within the banking industry. The more significant policies follow:
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of
CCFNB Bancorp, Inc. and its wholly owned subsidiary, Columbia
County Farmers National Bank (the "Bank"). All significant
inter-company balances and transactions have been eliminated in
consolidation.
NATURE OF OPERATIONS & LINES OF BUSINESS
The Corporation provides full banking services, including trust
services, through the Bank, to individuals and corporate
customers. The Bank has six offices covering an area of
approximately 484 square miles in Northeastern Pennsylvania. The
Corporation and its banking subsidiary are subject to regulation
of the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation and the Federal Reserve Bank of
Philadelphia.
Gathering deposits and making loans are the major lines of
business. The deposits are mainly deposits of individuals and
small businesses and the loans are mainly real estate loans
covering primary residences and small business enterprises. The
trust services, under the name of CCFNB and Co., include
administration of various estates, pension plans, self-directed
IRA's and other services. A third-party brokerage arrangement,
Invest, is also resident in the main branch, namely Bloomsburg.
This Invest Financial Service offers a full line of stocks, bonds
and other non-insured financial services.
USE OF ESTIMATES
The preparation of these consolidated financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of these
consolidated financial statements and the reported amounts of
income and expenses during the reporting periods. Actual results
could differ from those estimates.
INVESTMENT SECURITIES
The Corporation classifies its investment securities as either
"Held-to-Maturity" or "Available-for-Sale" at the time of
purchase. Debt securities are classified as Held-to-Maturity when
the Corporation has the ability and positive intent to hold the
securities to maturity. Investment securities Held-to-Maturity are
carried at cost adjusted for amortization of premiums and
accretion of discounts to maturity.
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Debt securities not classified as Held-to-Maturity and equity
securities included in the Available-for-Sale category, are
carried at fair value, and the amount of any unrealized gain or
loss net of the effect of deferred income taxes is reported as a
component of Stockholders' Equity. Management's decision to sell
Available-for-Sale securities is based on changes in economic
conditions controlling the sources and uses of funds, terms,
availability of and yield of alternative investments, interest
rate risk, and the need for liquidity.
The cost of debt securities classified as Held-to-Maturity or
Available-for-Sale is adjusted for amortization of premiums and
accretion of discounts to maturity. Such amortization and
accretion, as well as interest and dividends, is included in
interest income from investments. Realized gains and losses are
included in net investment securities gains. The cost of
investment securities sold, redeemed or matured is based on the
specific identification method.
LOANS
Loans are stated at their outstanding principal balances, net of
deferred fees or costs, unearned income, and the allowance for
loan losses. Interest on loans is accrued on the principal amount
outstanding, primarily on an actual day basis. Non-refundable loan
fees and certain direct costs are deferred and amortized over the
life of the loans using the interest method. The amortization is
reflected as an interest yield adjustment, and the deferred
portion of the net fees and costs is reflected as a part of the
loan balance.
NON-ACCRUAL LOANS - Generally, a loan is classified as
non-accrual, with the accrual of interest on such a loan
discontinued when the contractual payment of principal or interest
has become 90 days past due or management has serious doubts about
further collectibility of principal or interest, even though the
loan currently is performing. A loan may remain on accrual status
if it is in the process of collection and is either guaranteed or
well secured. When a loan is placed on non-accrual status, unpaid
interest credited to income in the current year is reversed, and
unpaid interest accrued in prior years is charged against the
allowance for credit losses. Certain non-accrual loans may
continue to perform, that is, payments are still being received
with those payments generally applied to principal. Non-accrual
loans remain under constant scrutiny and if performance continues,
interest income may be recorded on a cash basis based on
management's judgement as to collectibility of principal.
ALLOWANCE FOR LOAN LOSSES - The allowance for loan losses is
established through provisions for loan losses charged against
income. Loans deemed to be uncollectible are charged against the
allowance for loan losses, and subsequent recoveries, if any, are
credited to the allowance.
A factor in estimating the allowance for loan losses is the
measurement of impaired loans. A loan is considered impaired when,
based on current information and events, it is probable that the
Corporation will be unable to collect all amounts due according to
the contractual terms of the loan agreement. Under current
accounting standards, the allowance for loan losses related to
impaired loans is based on discounted cash flows using the loan's
effective interest rate or the fair value of the collateral for
certain collateral dependent loans.
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The allowance for loan losses is maintained at a level established
by management to be adequate to absorb estimated potential loan
losses. Management's periodic evaluation of the adequacy of the
allowance for loan losses is based on the Corporation's past loan
loss experience, known and inherent risks in the portfolio,
adverse situations that may affect the borrower's ability to repay
(including the timing of future payments), the estimated value of
any underlying collateral, composition of the loan portfolio,
current economic conditions, and other relevant factors. This
evaluation is inherently subjective as it requires material
estimates, including the amounts and timing of future cash flows
expected to be received on impaired loans that may be susceptible
to significant change.
PREMISES AND EQUIPMENT
Premises and equipment are stated at cost less accumulated
depreciation computed principally on the straight-line method over
the estimated useful lives of the assets. Maintenance and minor
repairs are charged to operations as incurred. The cost and
accumulated depreciation of the premises and equipment retired or
sold are eliminated from the property accounts at the time of
retirement or sale, and the resulting gain or loss is reflected in
current operations.
OTHER REAL ESTATE OWNED
Other real estate owned is comprised of property acquired through
a foreclosure proceeding or acceptance of a deed-in-lieu of
foreclosure and loans classified as in-substance foreclosure. In
accordance with Statement of Financial Accounting Standards (SFAS)
No. 114, a loan is classified as in-substance foreclosure when the
Corporation has taken possession of the collateral regardless of
whether formal foreclosure proceedings take place. Other real
estate owned is recorded at fair value at the date of foreclosure,
establishing a new cost basis. After foreclosure, valuations are
periodically performed by management, and the real estate is
carried at the lower of (1) cost or (2) fair value minus estimated
costs to sell. Income and expenses from operations of other real
estate owned and changes in the valuation allowance are included
in loss on other real estate owned.
INCOME TAXES
The provision for income taxes is based on the results of
operations, adjusted primarily for tax-exempt income. Certain
items of income and expense are reported in different periods for
financial reporting and tax return purposes. Deferred tax assets
and liabilities are determined based on the differences between
the consolidated financial statement and income tax bases of
assets and liabilities measured by using the enacted tax rates and
laws expected to be in effect when the timing differences are
expected to reverse. Deferred tax expense or benefit is based on
the difference between deferred tax asset or liability from period
to period.
PER SHARE DATA
Statement of Financial Accounting Standards (SFAS) No. 128,
"Earnings Per Share", requires dual presentation of basic and
diluted earnings per share. Basic earnings per share is calculated
by dividing net income by the weighted average number of shares of
common stock outstanding at the end of each period. Diluted
earnings per share is calculated by increasing the denominator for
the assumed conversion of all potentially dilutive securities. The
Corporation does not have any securities which have or will have a
dilutive effect, accordingly, basic and diluted per share data is
the same.
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CASH FLOW INFORMATION
For purposes of reporting consolidated cash flows, cash and cash
equivalents include cash on hand and due from banks,
interest-bearing deposits in other banks and federal funds sold.
The Corporation considers cash classified as interest-bearing
deposits with other banks as a cash equivalent because they are
represented by cash accounts essentially on a demand basis.
Federal funds are also included as a cash equivalent because they
are generally purchased and sold for one-day periods.
TRUST ASSETS AND INCOME
Property held by the Corporation in a fiduciary or agency capacity
for its customers is not included in the accompanying consolidated
financial statements because such items are not assets of the
Corporation. Trust Department income is recognized on a cash basis
and is not materially different than if it was reported on an
accrual basis.
RECENT ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards (SFAS) No. 133 (as
amended by SFAS No. 137), "Accounting for Derivative Instruments
and Hedging Activities", becomes effective for financial reporting
periods beginning after June 15, 2000. SFAS No. 133 requires fair
value accounting for all stand-alone derivatives and many
derivatives embedded in other instruments and contracts. Since the
Corporation does not enter into transactions involving derivatives
described in the standard and does not engage in hedging
activities, the standard is not expected to have a significant
impact on the Corporation's consolidated financial condition or
results of operations.
NOTE 2 - ALLOWANCE FOR LOAN LOSSES
Changes in the allowance for loan losses for the periods ended
June 30, 2000 and June 30, 1999 were as follows:
(Amounts in Thousands)
----------------------
2000 1999
---- ----
Balance, beginning of year......................... $ 985 $ 954
Provision charged to operations.................... 39 39
Loans charged-off.................................. (20) (17)
Recoveries......................................... 27 23
-------- --------
Balance, June 30................................... $ 1,031 $ 999
======== ========
At June 30, 2000 the recorded investment in loans that are
considered to be impaired as defined by SFAS No. 114 was $15,633.
No additional charge to operations was required to provide for the
impaired loans since the total allowance for loan losses is
estimated by management to be adequate to provide for the loan
loss allowance required by SFAS No. 114 along with any other
potential losses.
At June 30, 2000, there were no significant commitments to lend
additional funds with respect to non-accrual and restructured
loans.
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NOTE 3 - SHORT-TERM BORROWINGS
Federal funds purchased, securities sold under agreements to
repurchase, and Federal Home Loan Bank advances generally
represented overnight or less than 30-day borrowings. U.S.
Treasury tax and loan notes for collections made by the Bank were
payable on demand.
NOTE 4 - LONG-TERM BORROWINGS
Long-term borrowings are comprised of advances from the Federal
Home Loan Bank.
NOTE 5 - STOCKHOLDERS' EQUITY
Changes in stockholders' equity for the period ended June 30, 2000
were as follows:
(AMOUNTS IN THOUSANDS, EXCEPT COMMON SHARE DATA)
------------------------------------------------
ACCUMULATED
OTHER
COMPREHENSIVE COMPREHENSIVE
COMMON COMMON INCOME RETAINED INCOME TREASURY
SHARES STOCK SURPLUS (LOSS) EARNINGS (LOSS) STOCK TOTAL
------ ----- ------- ------ -------- ------ ----- -----
Balance at January 1, 2000......... 1,367,651 $ 1,710 $ 5,483 $ 0 $17,014 $(1,160) $ 0 $23,047
Comprehensive Income:
Net income........................ 0 0 0 961 961 0 0 961
Change in unrealized gain (loss)
on investment securities
available-for-sale net of
reclassification adjustment
and tax effects.................. 0 0 0 (131) 0 (131) 0 (131)
-------
TOTAL COMPREHENSIVE INCOME $ 830
=======
Issuance of 4,803 shares of common
stock under dividend reinvestment
and stock purchase plans......... 4,803 5 77 0 0 0 82
Purchase of 17,000 shares of
treasury stock................... 0 0 0 0 0 (292) (292)
Retirement of 17,000 shares of
treasury stock................... (17,000) (21) (271) 0 0 292 0
Cash dividends $.28 per share...... 0 0 0 (381) 0 0 (381)
--------- ------- ------- ------- ------- ------ -------
Balance at June 30, 2000........... 1,355,454 $ 1,694 $ 5,289 $17,594 $(1,291) $ 0 $23,286
========= ======= ======= ======= ======= ====== =======
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NOTE 6 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND
CONCENTRATIONS OF CREDIT RISK
The Corporation is a party to financial instruments with
off-balance sheet risk in the normal course of business to meet
the financing needs of its customers. These financial instruments
include commitments to extend credit, standby letters of credit
and commercial letters of credit. Those instruments involve, to
varying degrees, elements of credit and interest rate risk in
excess of the amount recognized in the consolidated balance
sheets. The contract or notional amounts of those instruments
reflect the extent of involvement the Corporation has in
particular classes of financial instruments. The Corporation does
not engage in trading activities with respect to any of its
financial instruments with off-balance sheet risk.
The Corporation may require collateral or other security to
support financial instruments with off-balance sheet credit risk.
The contract or notional amounts at June 30, 2000 and December 31,
1999 were as follows:
(Amounts in Thousands)
JUNE DECEMBER
30, 2000 31, 1999
-------- --------
Financial instruments whose contract amounts represent credit
risk:
Commitments to extend credit........................ $ 10,886 $ 10,342
Financial standby letters of credit................. 615 639
Performance standby letters of credit............... 18 11
Dealer floor plans.................................. 1,589 991
Commitments to extend credit are agreements to lend to a customer
as long as there is no violation of any condition established in
the contract. Commitments generally have fixed expiration dates or
other termination clauses and may require payment of a fee.
Because many of the commitments are expected to expire without
being drawn upon, the total commitment amounts do not necessarily
represent future cash requirements. The Corporation evaluates each
customer's creditworthiness on a case-by-case basis. The amount of
collateral obtained, if deemed necessary by the Corporation upon
extension of credit, is based on management's credit evaluation of
the counter-party. Collateral held varies but may include accounts
receivable, inventory, property, plant, equipment and
income-producing commercial properties.
Standby letters of credit and commercial letters of credit are
conditional commitments issued by the Corporation to guarantee the
performance of a customer to a third party. The credit risk
involved in issuing letters of credit is essentially the same as
that involved in extending loan facilities to customers. The
Corporation holds collateral supporting those commitments for
which collateral is deemed necessary.
The Corporation's exposure to credit loss in the event of
nonperformance by the other party to the financial instrument for
commitments to extend credit and letters of credit is represented
by the contractual notional amount of those instruments. The
Corporation uses the same credit policies in making commitments
and conditional obligations, as it does for on-balance sheet
instruments.
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The Corporation granted commercial, consumer and residential loans
to customers within Pennsylvania. Of the total loan portfolio at
June 30, 2000 77.8% was for real estate loans, principally
residential. It was the opinion of management that the high
concentration did not pose an adverse credit risk. Further, it was
management's opinion that the remainder of the loan portfolio was
balanced and diversified to the extent necessary to avoid any
significant concentration of credit.
NOTE 7 - MANAGEMENT'S ASSERTIONS AND COMMENTS REQUIRED TO BE PROVIDED WITH
FORM 10Q FILING
In management's opinion, the consolidated interim financial
statements reflect a fair presentation of the consolidated
financial position of CCFNB Bancorp, Inc. and Subsidiary, and the
results of their operations and their cash flows for the interim
periods presented. Further, the consolidated interim financial
statements reflect all adjustments, which are in the opinion of
management, necessary to present fairly the consolidated financial
condition and consolidated results of operations and cash flows
for the interim period presented and that all such adjustments to
the consolidated financial statements are of a normal recurring
nature.
The results of operations for the six-month period ended June 30,
2000 are not necessarily indicative of the results to be expected
for the full year.
These consolidated interim financial statements have been prepared
in accordance with requirements of Form 10Q and therefore do not
include all disclosures normally required by generally accepted
accounting principles applicable to financial institutions as
included with consolidated financial statements included in the
Corporation's annual Form 10K filing. The reader of these
consolidated interim financial statements may wish to refer to the
Corporation's annual report or Form 10K for the period ended
December 31, 1999, filed with the Securities and Exchange
Commission.
NOTE 8 - AMENDMENT OF RULE 10-01 OF REGULATION S-X REQUIRING REVIEWED
QUARTERLY FINANCIAL STATEMENTS
In accordance with the new amendment effective for the period
ended June 30, 2000 the accompanying consolidated financial
statements have been reviewed by Independent Certified Public
Accountants whose report is being submitted as an integral part of
this Form 10Q filing.
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Stockholders of CCFNB Bancorp, Inc.:
We have reviewed the accompanying consolidated balance sheet of CCFNB
Bancorp, Inc. and Subsidiary as of June 30, 2000, and the related
consolidated statements of income and cash flows for the three and
six-month periods then ended. These consolidated financial statements are
the responsibility of the management of CCFNB Bancorp, Inc. and
Subsidiary.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the June 30, 2000 financial statements for them to be in
conformity with generally accepted accounting principles.
The accompanying balance sheet of CCFNB Bancorp, Inc. and Subsidiary for
the year ended December 31, 1999, was audited by us as part of our audit
of the financial statements for the year ended December 31, 1999 taken as
a whole and we expressed an unqualified opinion on them in our report
dated January 18, 2000, but we have not performed any auditing procedures
since that date.
The accompanying statements of income and cash flows of CCFNB Bancorp,
Inc. and Subsidiary for the three and six-month periods ended June 30,
1999 were not audited by us and, accordingly, we do not express an opinion
on them.
J.H. Williams & Co., LLP
Kingston, Pennsylvania
July 14, 2000
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CCFNB BANCORP, INC. AND SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Consolidated Summary of Operations
(Dollars in Thousands, except for per share data)
AT AND FOR THE SIX MONTHS
-------------------------
ENDED JUNE 30, AT AND FOR THE YEARS ENDED DECEMBER 31,
-------------- ---------------------------------------
2000 1999 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ---- ----
<C<
Income and Expense:
Interest income....................... $ 6,641 $ 6,195 $ 12,669 $ 12,444 $ 12,498 $ 11,844 $ 11,466
Interest expense...................... 3,299 2,995 6,099 6,072 5,976 5,588 5,557
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net interest income................... 3,342 3,200 $ 6,570 $ 6,372 6,522 6,256 5,909
Loan loss provision................... 39 39 78 78 60 80 42
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net interest income after loan loss
provision........................... 3,303 3,161 6,492 6,294 6,462 6,176 5,867
Non-interest income................... 500 523 1,050 981 804 762 693
Non-interest expense.................. 2,536 2,405 4,818 4,739 4,492 4,450 4,374
---------- ---------- ---------- ---------- ---------- ---------- ----------
Income before income taxes............ 1,267 1,279 2,724 2,536 2,774 2,488 2,186
Income taxes.......................... 306 320 685 634 749 664 561
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net income............................ 961 959 2,039 1,902 2,025 1,824 1,625
========== ========== ========== ========== ========== ========== ==========
Per Share: (1)
Net income............................ $ .71 $ .70 $ 1.48 $ 1.38 $ 1.47 $ 1.33 $ 1.19
Cash dividends paid................... .28 .26 .51 .46 .46 .45 .45
Average shares outstanding............ 1,362,569 1,376,395 1,375,572 1,378,339 1,381,800 1,375,875 1,367,595
Average Balance Sheet:
Loans................................. $ 133,183 $ 119,745 $ 123,185 $ 116,490 $ 116,771 $ 112,341 $ 111,980
Investments........................... 47,780 49,558 49,827 45,878 40,307 39,248 37,063
Other earning assets.................. 263 6,090 2,739 4,952 5,053 3,739 1,727
Total assets.......................... 191,586 185,054 186,597 177,643 171,159 164,512 157,957
Deposits.............................. 139,080 138,051 138,963 131,366 117,086 117,414 116,495
Other interest-bearing liabilities.... 28,464 22,402 22,874 22,660 20,198 14,860 11,766
Stockholders' equity.................. 22,837 23,272 22,874 22,264 20,690 19,512 18,067
Balance Sheet Data:
Loans................................. 133,603 121,184 134,423 118,558 119,045 115,590 111,831
Investments........................... 46,788 51,430 49,104 48,151 43,862 37,407 40,384
Other earning assets.................. 229 1,713 217 6,105 582 6,856 385
Total assets.......................... 192,600 185,894 196,122 185,258 173,866 170,086 162,066
Deposits.............................. 140,236 139,556 138,606 137,679 127,719 131,400 128,985
Other interest-bearing liabilities.... 27,419 2,203 23,458 22,709 22,802 16,951 12,430
Stockholders' equity.................. 23,286 23,192 23,047 23,480 22,105 20,657 19,512
Ratios: (2)
Return on average assets.............. 1.00% 1.04% 1.09% 1.07% 1.18% 1.11% 1.03%
Return on average equity.............. 8.42% 8.24% 8.91% 8.54% 9.79% 9.35% 8.99%
Dividend payout ratio................. 39.65% 35.25% 34.09% 33.59% 31.65% 33.95% 34.35%
Average equity to average assets ratio 11.92% 12.58% 11.75% 12.53% 12.71% 11.86% 11.44%
(1) Per share data has been calculated on the weighted average number of shares
outstanding.
(2) The ratios for the six month period ending June 30, 2000 are annualized.
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15
The following discussion and analysis of the financial condition and
results of operations of the Corporation should be read in conjunction
with the consolidated financial statements of the Corporation. The
consolidated financial condition and results of operations of the
Corporation are essentially those of the Bank. Therefore, the discussion
and analysis that follows is directed primarily at the performance of the
Bank.
Overview
Total assets decreased 2.0% to $192.1 million at June 30, 2000 from $196.1
million at December 31, 1999. Net income increased .2% through June 30,
2000 to $961,000 or 71 cents per share, compared to $959,000 or 70 cents
per share for the same six month period ended June 30, 2000. Loans
decreased in 2000 by .6% to $133.6 million at June 30, 2000 from $134.4
million at December 31, 1999.
Results of Operations - For the Six Months Ended June 30, 2000 and June
30, 1999.
Net income is affected by five major components: net interest income or
the difference between interest income earned on loans and investments and
interest expense paid on deposits and borrowed funds; the provision for
loan losses, which is the amount charged against net interest income and
added to the allowance for loan losses to provide a reserve for potential
future loan losses; other non-interest income, which is made up of certain
fees, gains and losses from the sale of investment securities, trust
department income and other items; and other non-interest expenses, which
consist primarily of salaries and benefits, general overhead expenses,
other operational expenses and income taxes. Each of these major
components is reviewed in more detail in the following discussion.
Net income for six months ended June 30, 2000 was $961,000 or 71 cents per
share, as compared to $959,000 or 70 cents per share, for the comparable
period in 1999. Interest income increased 6.5% from $6.2 million at June
30, 1999 to $6.6 million at June 30, 2000. Interest expense increased
10.0% from $3.0 million at June 30, 1999 to $3.3 million at June 30, 2000.
Non-interest income decreased 4.4% from $523,000 at June 30, 1999 to
$500,000 at June 30, 2000. During 1999 this category included securities
gains of $31,000 with $0 in 2000. Non-interest expense increased 4.2% from
$2.4 million at June 30, 1999 to $2.5 million at June 30, 2000.
Return on average assets and return on average equity were 1.00% and
8.42%, respectively, for the six months ended June 30, 2000, as compared
to 1.04% and 8.24% for the six months ended June 30, 2000.
Net Interest Income
For the six months ended June 30, 1999 and 2000, net interest income was
$3.2 and $3.3 million, respectively. The net interest margin reflected an
increase to 3.93% for the six months ended June 30, 2000 from 3.88% for
the six months ended June 30, 1999. Average interest earning assets at
June 30, 2000 increased by 3.3% over June 30, 1999 to $181.2 million from
$175.4 million.
Average loans outstanding increased from $119.7 million to $133.2 million
or 11.3% for the six months ended June 30, 2000, as compared to the six
months ended June 30, 1999.
The outstanding balance of loans at June 30, 2000 decreased from $133.4
million at December 31, 1999 to $132.6 million at June 30, 2000.
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16
Shown below is a summary of past due and non-accrual loans:
IN THOUSANDS OF DOLLARS
-----------------------
JUNE DECEMBER
30, 2000 31, 1999
-------- --------
Past due and non-accrual:
Days 30 - 89......................................... $ 2,149 $ 665
Days 90 plus......................................... 588 173
Non-accrual.......................................... 233 199
-------- --------
$ 2,970 $ 1,037
======== ========
Past due and non-accrual loans increased to $3.0 million at June 30, 2000
from $1.0 million at December 31, 1999. This large increase is, in part,
due to one commercial loan of $624,000 which is now current. An additional
$450,000 represented by two secured loans are expected to become current
within the next two months. The remaining increase specifically was
attributable to real estate loans which became past due during the three
months which are fully secured by adequate real estate collateral.
Any loans classified for regulatory purposes as loss, doubtful,
substandard, or special mention that have not been disclosed under
Industry Guide 3 do not (i) represent or result from trends or
uncertainties which management reasonably expects will materially impact
future operating results, liquidity, or capital resources, or (ii)
represent material credits about which management is aware of any
information which causes management to have serious doubts as to the
ability of such borrowers to comply with the loan repayment terms.
The Corporation adheres to principles provided by Financial Accounting
Standards Board Statement No. 114, "Accounting by Creditors for Impairment
of a Loan" - Refer to Note 2 above for other details.
The following analysis provides a schedule of loan maturities/interest
rate sensitivities. This schedule presents a repricing and maturity
analysis as required by the FFIEC:
IN THOUSANDS
OF DOLLARS
----------
JUNE
MATURITY AND REPRICING DATA FOR LOANS AND LEASES 30, 2000
--------
Closed-end loans secured by first liens on 1-4 family residential
properties with a remaining maturity or repricing frequency of:
(1) Three months or less........................................... $ 2,723
(2) Over three months through 12 months............................ 10,512
(3) Over one year through three years.............................. 32,684
(4) Over three years through five years............................ 3,723
(5) Over five years through 15 years............................... 8,290
(6) Over 15 years.................................................. 1,968
All loans and leases other than closed-end loans secured by first liens on
1-4 family residential properties with a remaining maturity or repricing
frequency of:
(1) Three months or less........................................... 14,727
(2) Over three months through 12 months............................ 14,811
(3) Over one year through three years.............................. 16,564
(4) Over three years through five years............................ 9,702
(5) Over five years through 15 years............................... 13,841
(6) Over 15 years.................................................. 4,394
--------
Sub-total....................................................... $133,939
Add: non-accrual loans not included above............................. 233
Less: unearned income................................................. (569)
--------
Total Loans and Leases.......................................... $133,603
========
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17
Interest income from investment securities remained constant at $1.4
million for the six months ended June 30, 1999 and 2000. The average
balance of investment securities for the six months ended June 30, 2000
decreased 3.6% to $47.8 million, compared to the $49.6 million for the
same period of 1999.
Total interest expense increased 10.0% to $3.3 million at June 30, 2000
compared to $3.0 million at June 30, 1999.
Average short-term borrowings increased from $.4 million at June 30, 1999
to $6.4 million at June 30, 2000. One day borrowings from the Federal home
Loan Bank accounts for the principal increase in this area. With the
reduction of depositor repurchase agreements, averaging $19.7 million from
June 30, 1999 to $15.2 million at June 30, 2000, Federal Home Loan Bank
average short term borrowings increased from $0 at June 30, 1999 to $5.9
million at June 30, 2000.
Average long-term borrowings also increased from $2.3 million at June 30,
1999 to $6.9 million at June 30, 2000. This also was a result of the
decrease in repurchase agreements and also the increased loan demand
during these periods. Average total loans increased 11.3% from $119.7
million at June 30, 1999 to $133.2 million at June 30, 2000.
The following table sets forth, for the periods indicated, information
regarding: (1) the total dollar amount of interest income from
interest-earning assets and the resultant average yields; (2) the total
dollar amount of interest expense on interest-bearing liabilities and the
resultant average cost; (3) net interest income; (4) net interest margin;
(5) tax equivalent net interest income; and (6) tax equivalent net
interest margin. Information is based on average daily balances during the
indicated periods.
Average Balance Sheet and Rate Analysis
(Dollars in Thousands)
JUNE 2000 JUNE 1999
-------------------------------- -------------------------------
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE(1) EXPENSE(2) RATE BALANCE(1) EXPENSE(2) RATE
---------- ---------- ---- ---------- ---------- ----
ASSETS:
Interest-bearing deposits with other financial
institutions.................................... $ 263 $ 8 6.08% $ 4,776 $ 113 4.73%
Investment securities:
U.S. government securities...................... 32,114 991 6.17% 34,092 981 5.76%
State and municipal obligations (3)............. 14,526 363 7.57% 14,092 334 7.18%
Other securities................................ 1,140 42 7.37% 1,374 39 5.68%
-------- -------- ---- -------- -------- ----
Total Investment Securities....................... $ 47,780 $ 1,396 5.84% $ 49,558 $ 1,354 5.46%
Federal funds sold................................ 0 0 0.00% 1,314 30 4.57%
Consumer.......................................... 12,484 501 8.03% 9,814 410 8.36%
Dealer floor plan................................. 5,913 252 8.52% 2,613 103 7.88%
Mortgage.......................................... 102,957 3,981 7.73% 97,767 3,806 7.79%
Commercial........................................ 9,409 440 9.35% 7,244 319 8.81%
Tax free (3)...................................... 2,420 63 7.89% 2,307 60 7.88%
-------- -------- ---- -------- -------- ----
Total loans....................................... $133,183 $ 5,237 7.86% $119,745 $ 4,698 7.85%
Total interest earning assets..................... 181,226 6,641 7.33% 175,393 6,195 7.06%
-------- -------- ---- -------- -------- ----
Reserve for loan losses........................... $ (1,011) $ (975)
Cash and due from banks........................... 2,012 1,717
Other assets...................................... 9,359 8,919
-------- --------
Total assets...................................... $191,586 $185,054
======== ========
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18
JUNE 2000 JUNE 1999
------------------------------- -------------------------------
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE(1) EXPENSE(2) RATE BALANCE(1) EXPENSE(2) RATE
---------- ---------- ---- ---------- ---------- ----
LIABILITIES AND CAPITAL:
SUPER NOW deposits................................ $ 21,643 $ 138 1.28% $ 21,788 $ 150 1.38%
IRA's under $100,000.............................. 8,315 213 5.12% 8,304 204 4.91%
Money market deposits............................. 9,883 135 2.73% 11,204 153 2.73%
Savings deposits.................................. 21,844 279 2.55% 21,722 275 2.53%
Time deposits including IRA's over $100,000....... 16,458 488 5.93% 13,021 375 5.76%
Other time deposits under $100,000................ 47,742 1,264 5.30% 49,167 1,309 5.32%
-------- -------- ---- -------- -------- ----
Total interest-bearing deposits................... $125,885 $ 2,517 4.00% $125,206 $ 2,466 3.94%
-------- -------- ---- -------- -------- ----
U.S. treasury short-term borrowings............... 526 14 5.32% 422 9 4.27%
Short-term borrowings - other..................... 5,860 176 6.01% 0 0 0.00%
Long-term borrowings.............................. 6,913 205 5.93% 2,309 64 5.54%
Repurchase agreements............................. 15,165 387 5.10% 19,671 456 4.64%
-------- -------- ---- -------- -------- ----
Total interest-bearing liabilities................ $154,349 $ 3,299 4.27% $147,608 $ 2,995 4.06%
-------- -------- ---- -------- -------- ----
Demand deposits................................... $ 13,195 $ 12,845
Other liabilities................................. 1,205 1,329
Stockholders' equity.............................. 22,837 23,272
-------- --------
Total liabilities and capital..................... $191,586 $185,054
======== ========
NET INTEREST INCOME/NET INTEREST MARGIN (4)...... $ 3,342 3.69% $ 3,200 3.65%
======== ==== ======== ====
TAX EQUIVALENT NET INTEREST INCOME/
NET INTEREST MARGIN (5).......................... $ 3,561 3.93% $ 3,403 3.88%
======== ==== ======== ====
(1) Average volume information was computed using daily averages.
(2) Interest on loans includes fee income.
(3) Yield on tax-exempt obligations has been computed on a tax-equivalent
basis.
(4) Net interest margin is computed by dividing net interest income by
total interest earning assets.
(5) Interest and yield are presented on a tax-equivalent basis using 34%
for 2000 and 1999.
Provision for Loan Losses
The provision for loan losses is based on management's evaluation of the
allowance for loan losses in relation to the credit risk inherent in the
loan portfolio. In establishing the amount of the provision required,
management considers a variety of factors, including but not limited to,
general economic conditions, volumes of various types of loans, collateral
adequacy and potential losses from significant borrowers. On a monthly
basis, the Board of Directors and the Credit Administration Committee
review information regarding specific loans and the total loan portfolio
in general in order to determine the amount to be charged to the provision
for loan losses.
For the six month period ending June 30, 2000 and 1999, the provision for
loan losses was $39,000.
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19
Non-Interest Income
The following table sets forth, for the periods indicated, the major
components of non-interest income:
SIX MONTHS ENDED
JUNE 30,
--------
2000 1999
---- ----
(Dollars in Thousands)
Service charges and fees.................................. $ 295 $ 298
Trust department income................................... 82 85
Investment securities gain - net.......................... 0 31
Invest income............................................. 52 48
Other..................................................... 71 61
-------- --------
Total................................................ $ 500 $ 523
======== ========
For the six months ended June 30, 2000, total non-interest income
decreased $23,000 to $500,000 compared with $523,000 for the six month
period ended June 30, 1999. The decrease is the result of a gain on sale
of securities in 1999 of $31,000 compared to $0 in 2000, a decrease in
service charges and fees from $298,000 at June 30, 1999 to $295,000 at
June 30, 2000, a decrease in trust department income from $85,000 at June
30, 1999 to $82,000 at June 30, 2000. The additional increases were:
Invest Income, a $4,000 increase and other non-interest income expense, a
$10,000 increase.
Non-Interest Expenses
Generally, non-interest expense accounts for the cost of maintaining
facilities, providing salaries and necessary benefits to employees, and
general operating costs such as insurance, supplies, advertising, data
processing services, taxes and other related expenses. Some of the costs
and expenses are variable while others are fixed. To the extent possible,
the Company utilizes budgets and related measures to control variable
expenses. The following table sets forth, for the periods indicated, the
major components of non-interest expenses:
SIX MONTHS ENDED
JUNE 30,
--------
2000 1999
---- ----
(Dollars in Thousands)
Salaries and wages....................................... $ 1,012 $ 937
Employee benefits........................................ 330 316
Net occupancy expense.................................... 170 169
Furniture and equipment expense.......................... 312 293
State shares tax......................................... 109 96
Other expense............................................ 603 594
-------- --------
Total............................................... $ 2,536 $ 2,405
======== ========
An increase of 5.4% or $131,000 occurred overall in the non-interest
expense area. Salaries and wages increased 8% from $937,000 at June 30,
1999 to $1,012,000 at June 30, 2000. The wage increase is the result of
normal merit and cost of living increases plus higher starting wages for
new employees. This is necessary as presently it is difficult to recruit
new employees. Employee benefits increased 4.4% from $316,000 at June 30,
1999 to $330,000 at June 30, 2000. This is mainly due to increased health
insurance costs.
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20
Furniture and equipment expense increased 6.5% during the past twelve
months. The addition of the telebank system and additional computer
stations have increased the cost on the hardware, software, maintenance,
and depreciation components of this expense category.
The Pennsylvania Shares Tax increased 13.5% from $96,000 at June 30, 1999
to $109,000 at June 30, 2000. A 1.5% increase in other non-interest
expense occurred from June 30, 1999 at $594,000 to June 30, 2000 at
$603,000. The differences include: increases in Deferred Officer
Retirement expense of $10,000; FDIC Insurance expense of $6,000; and
Postage expense of $5,000. Offsetting these increases was a $12,000
decrease in Y2K expense from $12,000 at June 30, 1999 to $0 at June 30,
2000.
Capital
A major strength of a financial institution is a strong capital position.
This capital is very critical as it must provide growth, payment to
stockholders, and absorption of unforeseen losses. The federal regulators
provide standards that must be met. These standards measure
"risk-adjusted" assets against different categories of capital. The
"risk-adjusted" assets reflect off balance sheet items, such as
commitments to make loans, and also place balance sheet assets on a "risk"
basis for collectibility. The adjusted assets are measured against Tier I
Capital and Total Qualifying Capital. Tier I Capital is common
stockholders' equity and Tier II Capital includes the allowance for loan
losses. Allowance for loan losses must be lower than or equal to common
stockholders' equity to be eligible for Total Qualifying Capital.
The Company exceeds all minimum capital requirements as reflected in the
following table:
JUNE 30, 2000 DECEMBER 31, 1999
------------- -----------------
MINIMUM MINIMUM
CALCULATED STANDARD CALCULATED STANDARD
RATIOS RATIOS RATIOS RATIOS
------ ------ ------ ------
Risk Based Ratios:
Tier I Capital to risk-weighted assets 20.09% 4.00% 17.94% 4.00%
Total Qualifying Capital to
risk-weighted assets................ 20.94% 8.00% 18.68% 8.00%
Additionally, certain other ratios also provide capital analysis as
follows:
JUNE DECEMBER
30, 2000 31, 1999
-------- --------
Tier I Capital to average assets........................... 12.77% 12.94%
Management believes that the Bank's current capital position and liquidity
positions are strong and that its capital position is adequate to support
its operations.
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21
PART II - Other Information:
Item 1. Legal Proceedings
Management and the Corporation's legal counsel are not aware of any
litigation that would have a material adverse effect on the consolidated
financial position of the Corporation. There are no proceedings pending
other than the ordinary routine litigation incident to the business of
the Corporation and its subsidiary, Columbia County Farmers National
Bank. In addition, no material proceedings are pending or are known to
be threatened or contemplated against the Corporation and the Bank by
government authorities.
Item 2. Changes in Securities - Nothing to report.
Item 3. Defaults Upon Senior Securities - Nothing to report.
Item 4. Submission of Matters to a Vote of Security Holders - Nothing to
report.
Item 5. Other Information
On May 11, 2000 the Board of Directors voted to appoint Willard H. Kile,
Jr. as a member of the Board of Directors to fill the vacancy created
by the retirement of Willard H. Kile, Sr.
Item 6. Exhibits and Reports on Form 8-K - Nothing to report.
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22
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CCFNB BANCORP, INC.
(Registrant)
By Paul E. Reichart
----------------
Paul E. Reichart
President & CEO
Date: July 28, 2000
By Virginia D. Kocher
------------------
Virginia D. Kocher
Treasurer
Date: July 28, 2000
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