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 March 31, 2001
[ ] 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.
1,345,588 shares of $1.25 (par) common stock were outstanding as of
April 24, 2001.
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CCFNB BANCORP, INC. AND SUBSIDIARY
MARCH 31, 2001
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 - 11
- Report of Independent Certified Public Accountants 12
- Management's Discussion and Analysis of Consolidated
Financial Condition and Results of Operations 13 - 19
PART II - OTHER INFORMATION 20
SIGNATURES 21
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CCFNB BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
UNAUDITED
MARCH DECEMBER
31, 2001 31, 2000
-------- --------
ASSETS
Cash and due from banks....................................... $ 4,597 $ 6,722
Interest-bearing deposits with other banks.................... 8,425 5,441
Federal funds sold............................................ 1,500 500
Investment securities:
Securities Available-for-Sale............................... 45,486 46,185
Loans, net of unearned income................................. 137,392 137,360
Allowance for loan losses..................................... 1,008 1,008
-------- --------
Net loans................................................... $136,384 $136,352
Premises and equipment........................................ 4,843 4,922
Accrued interest receivable................................... 1,008 1,038
Other assets.................................................. 2,183 1,894
-------- --------
TOTAL ASSETS............................................. $204,426 $203,054
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-interest bearing........................................ $ 12,943 $ 14,593
Interest bearing............................................ 132,828 128,576
-------- --------
Total Deposits........................................... $145,771 $143,169
Short-term borrowings......................................... 18,274 20,109
Long-term borrowings.......................................... 13,365 13,367
Accrued interest and other expenses........................... 1,303 1,326
Other liabilities............................................. 95 33
-------- --------
TOTAL LIABILITIES........................................ $178,808 $178,004
-------- --------
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share; authorized 5,000,000
shares; issued 1,345,588 shares in 2001 and
1,346,328 shares in 2000.................................... $ 1,682 $ 1,683
Surplus....................................................... 5,134 5,146
Retained earnings............................................. 18,553 18,310
Accumulated other comprehensive income (loss)................. 249 (89)
-------- --------
TOTAL STOCKHOLDERS' EQUITY............................... $ 25,618 $ 25,050
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............... $204,426 $203,054
======== ========
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 THREE
MONTHS ENDING
MARCH 31,
---------
2001 2000
---------- ----------
INTEREST INCOME
Interest and fees on loans:
Taxable .............................................. $ 2,650 $ 2,559
Tax-exempt ........................................... 39 31
Interest and dividends on investment securities:
Taxable interest ..................................... 439 502
Tax-exempt interest .................................. 194 182
Dividends ............................................ 2 2
Interest on federal funds sold ......................... 19 0
Interest on deposits in other banks .................... 111 3
Other interest income .................................. 19 19
---------- ----------
TOTAL INTEREST INCOME ............................. $ 3,473 $ 3,298
---------- ----------
INTEREST EXPENSE
Interest on deposits ................................... $ 1,419 $ 1,246
Interest on short-term borrowings ...................... 254 311
Interest on long-term borrowings ....................... 200 84
---------- ----------
TOTAL INTEREST EXPENSE ............................ $ 1,873 $ 1,641
---------- ----------
Net interest income .................................... $ 1,600 $ 1,657
Provision for loan losses .............................. 8 20
---------- ----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES $ 1,592 $ 1,637
---------- ----------
NON-INTEREST INCOME
Service charges and fees ............................... $ 144 $ 148
Trust department income ................................ 49 33
Other income ........................................... 43 44
---------- ----------
TOTAL NON-INTEREST INCOME ......................... $ 236 $ 225
---------- ----------
NON-INTEREST EXPENSES
Salaries and wages ..................................... $ 517 $ 498
Pensions and other employee benefits ................... 170 167
Occupancy expense, net ................................. 96 87
Furniture and equipment expense ........................ 132 156
Other operating expenses ............................... 363 339
---------- ----------
TOTAL NON-INTEREST EXPENSES ....................... $ 1,278 $ 1,247
---------- ----------
Income before income taxes ............................. $ 550 $ 615
Income tax expense ..................................... 119 150
---------- ----------
NET INCOME ........................................ $ 431 $ 465
========== ==========
PER SHARE DATA
Net income ............................................. $ .32 $ .34
Cash dividends ......................................... $ .14 $ .14
Weighted average shares outstanding .................... 1,345,006 1,367,268
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 THREE
MONTHS ENDING
MARCH 31,
---------
2001 2000
-------- --------
OPERATING ACTIVITIES
Net income ................................................... $ 431 $ 465
Adjustments to reconcile net income to net cash provided by
operating activities:
Provision for loan losses ................................ 8 20
Provision for depreciation and amortization .............. 110 135
Premium amortization on investment securities ............ 10 9
Discount accretion on investment securities .............. (4) (4)
Deferred income taxes (benefit) .......................... (8) 0
(Increase) in accrued interest receivable and other assets (354) (183)
(Decrease) in accrued interest, other expenses and other
liabilities ............................................ (34) (27)
-------- --------
NET CASH PROVIDED BY OPERATING ACTIVITIES .............. $ 159 $ 415
-------- --------
INVESTING ACTIVITIES
Proceeds from sales, maturities and redemptions of investment
securities Available-for-Sale .............................. $ 6,386 $ 881
Proceeds from maturities and redemptions of Held-to-Maturity
investment securities ...................................... 0 200
Purchase of investment securities Available-for-Sale ......... (5,178) 0
Net (increase) in loans ...................................... (40) 1,404
Purchases of premises and equipment .......................... (32) (43)
-------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ..... $ 1,136 $ 2,442
-------- --------
FINANCING ACTIVITIES
Net increase (decrease) in deposits .......................... $ 2,602 $ 469
Net increase (decrease) in short-term borrowings ............. (1,835) (9,829)
Net increase in long-term borrowings ......................... (2) 4,999
Proceeds from issuance of common stock ....................... 45 45
Acquisition of treasury stock ................................ (58) (61)
Cash dividends paid .......................................... (188) (192)
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES ............... $ 564 $ (4,569)
-------- --------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ........ $ 1,859 $ (1,712)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ............. 12,663 6,072
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD .............. $ 14,522 $ 4,360
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest ................................................... $ 1,873 $ 1,670
Income taxes ............................................... $ 29 $ 30
See accompanying notes to Consolidated Financial Statements.
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CCFNB BANCORP, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting and reporting policies of CCFNB Bancorp, Inc. and
Subsidiary (the "Corporation") are in accordance with accounting
principles generally accepted in the United States of America 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") and all other equity interests. 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.
Procuring 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 is also resident in the main branch, namely Bloomsburg.
This investment center offers a full line of stocks, bonds and other
non-insured financial services.
On December 19, 2000 the Corporation became a Financial Holding Company
by having filed an election to do so with the Federal Reserve Board.
The Bancorp acquired a 50% interest in a local insurance agency during
January 2001.
USE OF ESTIMATES
The preparation of these consolidated financial statements in
conformity with accounting principles generally accepted in the United
States of America 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.
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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.
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.
Equity securities that do not have readily determinable fair values
such as Federal Reserve Bank Stock, Federal Home Loan Bank Stock and
Atlantic Central Banker's Bank Stock are carried at cost and are
included in other assets.
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.
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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.
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 and is
included in other assets. 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.
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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.
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 generally recognized on a cash
basis and is not materially different than if it was reported on an
accrual basis.
SEGMENT REPORTING
The Corporation's banking subsidiary acts as an independent community
financial services provider, and offers traditional banking and related
financial services to individual, business and government customers.
Through its branch, internet banking, telephone and automated teller
machine network, the Bank offers a full array of commercial and retail
financial services, including the taking of time, savings and demand
deposits; the making of commercial, consumer and mortgage loans; and
the providing of other financial services. The Bank also performs
personal, corporate, pension and fiduciary services through its Trust
Department as well as offering diverse investment products through its
investment center.
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Management does not separately allocate expenses, including the cost of
funding loan demand, between the commercial, retail, trust and
investment center operations of the Corporation. As such, discrete
financial information is not available and segment reporting would not
be meaningful.
RECENT ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards (SFAS) No. 133 (as amended
by SFAS No. 138), "Accounting for Derivative Instruments and Hedging
Activities", becomes effective for financial reporting periods
beginning after June 15, 2000. SFAS No. 133 requires the recognition of
the fair value of all derivative instruments on the consolidated
balance sheets. 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.
Statement of Financial Accounting Standards (SFAS) No. 140, "Accounting
for Transfers and Servicing of Financial Assets and Extinguishment of
Liabilities", is generally effective for transactions occurring after
March 31, 2001. For recognition and reclassification of collateral and
for disclosure related to securitization transactions and collateral,
the effective date is for fiscal years ending after December 15, 2000.
SFAS No. 140 replaces SFAS No. 125 and provides revisions to the
standards for accounting and requirements for certain disclosures
relating to securitizations and other transfers of financial assets.
The standard is not expected to have a significant impact on the
Corporation's consolidated financial condition or results of
operations.
RECLASSIFICATION
Certain amounts in the consolidated financial statements of the prior
years have been reclassified to conform with presentation used in the
2000 consolidated financial statements. Such reclassifications had no
effect on the Corporation's consolidated financial condition or net
income.
NOTE 2 - ALLOWANCE FOR LOAN LOSSES
Changes in the allowance for loan losses for the periods ended March
31, 2001, and March 31, 2000 were as follows:
(Amounts in Thousands)
----------------------
2001 2000
------- -------
Balance, beginning of year ............ $ 1,008 $ 985
Provision charged to operations ....... 8 20
Loans charged-off ..................... (15) (15)
Recoveries ............................ 7 16
------- -------
Balance, March 31 ..................... $ 1,008 $ 1,006
======= =======
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At March 31, 2000 the recorded investment in loans that are considered
to be impaired as defined by SFAS No. 114 was $24,721. 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 March 31, 2001, there were no significant commitments to lend
additional funds with respect to non-accrual and restructured loans.
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 March 31, 2001
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, 2001......... 1,346,328 $ 1,683 $ 5,146 $ 0 $18,310 $ (89) $ 0 $25,050
Comprehensive Income:
Net income........................ 0 0 0 431 431 0 0 431
Change in unrealized gain (loss)
on investment securities
available-for-sale net of
reclassification adjustment
and tax effects.................. 0 0 0 338 0 338 0 338
-------
TOTAL COMPREHENSIVE INCOME $ 769
=======
Issuance of 2,719 shares of common
stock under dividend reinvestment
and stock purchase plans......... 2,719 3 42 0 0 0 45
Purchase of 3,459 shares of
treasury stock................... 0 0 0 0 0 (58) (58)
Retirement of 3,459 shares of
treasury stock................... (3,459) (4) (54) 0 0 58 0
Cash dividends $.14 per share...... 0 0 0 (188) 0 0 (188)
--------- ------- ------- ------- ------- ------ -------
Balance at March 31, 2001.......... 1,345,588 $ 1,682 $ 5,134 $18,553 $ 249 $ 0 $25,618
========= ======= ======= ======= ======= ====== =======
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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 March 31, 2001 and December 31, 2000 were as
follows:
(Amounts in Thousands)
----------------------
MARCH DECEMBER
31, 2001 31, 2000
-------- --------
FINANCIAL INSTRUMENTS WHOSE CONTRACT AMOUNTS REPRESENT
CREDIT RISK:
Commitments to extend credit........................ $ 10,260 $ 9,685
Financial standby letters of credit................. 1,959 1,990
Performance standby letters of credit............... 14 18
Dealer floor plans.................................. 1,765 1,098
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 March 31,
2001, 79.3% 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 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 are unaudited however they
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
periods presented and that all such adjustments to the consolidated
financial statements are of a normal recurring nature. The independent
accountants, J.H. Williams & Co., LLP, reviewed these consolidated
financial statements as stated in their accompanying review report.
The results of operations for the three-month period ended March 31,
2001, 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 accounting principles generally
accepted in the United States of America 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, 2000, filed with the Securities and Exchange Commission.
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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 March 31, 2001, and the related consolidated
statements of income and cash flows for the three-month periods ended March 31,
2001 and 2000. These consolidated financial statements are the responsibility of
the management of CCFNB Bancorp, Inc. and Subsidiary.
We conducted our reviews 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 auditing standards generally accepted in the United States of
America, 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 reviews, we are not aware of any material modifications that should
be made to the consolidated financial statements referred to above for them to
be in conformity with accounting principles generally accepted in the United
States of America.
We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated balance sheet of
CCFNB Bancorp, Inc. and Subsidiary as of December 31, 2000, and the related
consolidated statements of income, stockholders' equity, and cash flows for the
year then ended (not presented herein); and in our report dated January 19,
2001, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
consolidated balance sheet as of December 31, 2000, is fairly stated, in all
material respects, in relation to the consolidated balance sheet from which it
has been derived.
/s/ J.H. Williams & Co., LLP
- ----------------------------
J.H. Williams & Co., LLP
Kingston, Pennsylvania
April 24, 2001
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15
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 THREE MONTHS
---------------------------
ENDED MARCH 31, ---------AT AND FOR THE YEARS ENDED DECEMBER 31,----------
--------------- ----------------------------------------------------------
2001 2000 2000 1999 1998 1997 1996
---- ---- ---- ---- ---- ---- ----
Income and Expense:
Interest income ...................... $ 3,473 $ 3,298 $ 13,552 $ 12,669 $ 12,444 $ 12,498 $ 11,844
Interest expense ..................... 1,873 1,641 6,859 6,099 6,072 5,976 5,588
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net interest income .................. 1,600 1,657 $ 6,693 $ 6,570 $ 6,372 6,522 6,256
Loan loss provision .................. 8 20 54 78 78 60 80
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net interest income after loan loss
provision .......................... 1,592 1,637 6,639 6,492 6,294 6,462 6,176
Non-interest income .................. 236 225 1,053 1,050 981 804 762
Non-interest expense ................. 1,278 1,247 4,967 4,818 4,739 4,492 4,450
---------- ---------- ---------- ---------- ---------- ---------- ----------
Income before income taxes ........... 550 615 2,725 2,724 2,536 2,774 2,488
Income taxes ......................... 119 150 671 685 634 749 664
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net income ........................... 431 465 2,054 2,039 1,902 2,025 1,824
========== ========== ========== ========== ========== ========== ==========
Per Share: (1)
Net income ........................... $ .32 $ .34 $ 1.51 $ 1.48 $ 1.38 $ 1.47 $ 1.33
Cash dividends paid .................. .14 .14 .56 .51 .46 .46 .45
Average shares outstanding ........... 1,345,006 1,367,268 1,355,624 1,375,572 1,378,339 1,381,800 1,375,875
Average Balance Sheet:
Loans ................................ $ 137,170 $ 132,925 $ 134,325 $ 123,185 $ 116,490 $ 116,771 $ 112,341
Investments .......................... 45,309 47,434 45,877 48,726 44,906 39,335 38,299
Other earning assets ................. 9,561 226 1,345 2,739 4,952 5,053 3,739
Total assets ......................... 203,405 194,001 196,727 186,597 177,643 171,159 164,512
Deposits ............................. 143,493 138,536 139,774 138,963 131,366 117,086 117,414
Other interest-bearing liabilities ... 33,199 24,009 31,203 22,874 22,660 20,198 14,860
Stockholders' equity ................. 25,334 23,120 23,910 22,874 22,264 20,690 19,512
Balance Sheet Data:
Loans ................................ 137,392 133,020 137,360 134,423 118,558 119,045 115,590
Investments .......................... 45,486 46,728 46,185 48,003 47,179 42,671 36,458
Other earning assets ................. 9,925 221 5,940 217 6,105 582 6,856
Total assets ......................... 204,426 191,879 203,054 196,122 185,258 173,866 170,086
Deposits ............................. 145,771 139,075 143,169 138,606 137,679 127,719 131,400
Other interest-bearing liabilities ... 31,639 28,394 33,477 33,224 22,709 22,802 16,951
Stockholders' equity ................. 25,618 23,192 25,050 23,047 23,480 22,105 20,657
Ratios: (2)
Return on average assets ............. .85% .96% 1.04% 1.09% 1.07% 1.18% 1.11%
Return on average equity ............. 6.81% 8.04% 8.59% 8.91% 8.54% 9.79% 9.35%
Dividend payout ratio ................ 45.01% 41.08% 36.89% 33.59% 33.59% 31.65% 33.95%
Average equity to average assets ratio 12.45% 11.90% 12.34% 11.75% 12.53% 12.71% 11.86%
(1) Per share data has been calculated on the weighted average number of
shares outstanding.
(2) The ratios for the three month period ending March 31, 2001 and 2000
are annualized.
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16
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 increased .6% to $204.4 million at March 31, 2001 from $203.1
million at December 31, 2000. Net income decreased 7.3% through March 31, 2001
to $431,000 or 32 cents per share, compared to $465,000 or 34 cents per share
for the same three month period ended March 31, 2001. Loans remained constant at
$137.4 for March 31, 2001 and December 31, 2000.
Results of Operations - For the Three Months Ended March 31, 2001 and March 31,
2000.
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 the three months ended March 31, 2001 was $431,000 or 32 cents
per share, as compared to $465,000 or 34 cents per share, for the comparable
period in 2000. Interest income increased $175,000 and interest expense
increased $232,000 contributing to a $57,000 decrease in net interest income
comparing March 31, 2001 to March 31, 2000. Non-interest income increased
$11,000 and non-interest expense increased $31,000.
Return on average assets and return on average equity were .85% and 6.81%,
respectively, for the three months ended March 31, 2001, as compared to .96% and
8.04% for the comparable period in 2000.
Net Interest Income
For the three months ended March 31, 2001 and 2000, net interest income was $1.6
million and $1.7 million, respectively. The net interest margin was 3.56% for
the three months ended March 31, 2001 compared to 3.91% for March 31, 2000.
Average interest earning assets at March 31, 2001 increased by 4.8% over March
31, 2000 to $203.4 million from $194.0 million.
Average loans outstanding increased from $133.0 million to $137.2 million or
3.2% for the three months ended March 31, 2001, as compared to the three months
ended March 31, 2000.
The outstanding balance of loans at March 31, 2001 remained at $137.4 million
for December 31, 2000 and March 31, 2001.
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17
Shown below is a summary of past due and non-accrual loans:
IN THOUSANDS OF DOLLARS
-----------------------
MARCH DECEMBER
31, 2001 31, 2000
-------- --------
Past due and non-accrual:
Days 30 - 89......................................... $ 1,544 $ 1,340
Days 90 plus......................................... 567 344
Non-accrual.......................................... 297 312
-------- --------
$ 2,408 $ 1,996
======== ========
Past due and non-accrual loans increased to $2.4 million at March 31, 2001 from
$2.0 million at December 31, 2000. $1.7 million of these past due loans are
secured by real estate.
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
----------
MARCH
MATURITY AND REPRICING DATA FOR LOANS AND LEASES 31, 2001
------------------------------------------------ --------
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 ............................................. $ 2,062
(2) Over three months through 12 months .............................. 13,675
(3) Over one year through three years ................................ 34,657
(4) Over three years through five years .............................. 1,659
(5) Over five years through 15 years ................................. 9,090
(6) Over 15 years .................................................... 1,894
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 ............................................. 15,834
(2) Over three months through 12 months .............................. 12,421
(3) Over one year through three years ................................ 14,121
(4) Over three years through five years .............................. 10,227
(5) Over five years through 15 years ................................. 16,248
(6) Over 15 years .................................................... 5,642
---------
Sub-total ......................................................... $ 137,530
Add: non-accrual loans not included above ................................ 297
Less: unearned income .................................................... (435)
---------
Total Loans and Leases ............................................ $ 137,392
=========
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18
Interest income from investment securities reflects a 7.4% decrease comparing
$635,000 for the three months ended March 31, 2001 and the $686,000 for the
three months ended March 31, 2000. The average balance of investment securities
for the three months ended March 31, 2001 decreased 4.4% to $45.3 million,
compared to the $47.4 million for the same period of 2000.
Total interest expense increased $232,000 or 14.1% for the first three months of
2001 as compared to the first three months of 2000.
Average short term borrowings decreased from $23.9 million at March 31, 2000 to
$19.8 million at March 31, 2001. This 17.2% decrease reflects an increase in
depositor repurchase agreements from an average $15.8 million at March 31, 2000
to $19.4 million at March 31, 2001. Conversely, short term borrowings from
Federal Home Loan Bank averaged $7.7 million at March 31, 2000 and $0 million at
March 31, 2001.
Long term borrowings from Federal Home Loan Bank also increased from an average
$5.7 million at March 31, 2000 to $13.4 million at March 31, 2001.
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)
-----------MARCH 2001--------- -----------MARCH 2000---------
------------------------------ ------------------------------
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.................................... $ 8,189 $ 111 5.42% $ 219 $ 3 5.48%
Investment securities:
U.S. government securities...................... 28,160 426 6.05% 32,642 501 6.14%
State and municipal obligations (3)............. 16,138 194 7.28% 14,583 182 7.56%
Other securities................................ 1,011 15 5.93% 209 3 5.74%
-------- -------- ---- -------- -------- ----
Total Investment Securities....................... $ 45,309 $ 635 5.61% $ 47,434 $ 686 5.78%
Federal funds sold................................ 1,372 19 5.54% 0 0 .00%
Consumer.......................................... 12,261 254 8.29% 12,439 249 8.01%
Dealer floor plan................................. 5,000 100 8.00% 6,162 127 8.24%
Mortgage.......................................... 108,570 2,099 7.73% 101,509 1,969 7.76%
Commercial........................................ 8,464 197 9.31% 9,313 214 9.19%
Lease financing receivables....................... 106 1 5.72% 0 0 .00%
Tax free (3)...................................... 2,769 38 8.32% 2,376 31 7.91%
-------- -------- ---- -------- -------- ----
Total loans....................................... $137,170 $ 2,689 7.84% $131,799 $ 2,590 7.86%
Other assets/equity securities.................... 1,126 19 6.75% 1,126 19 6.75%
Total interest earning assets..................... 193,166 3,473 7.19% 180,578 3,298 7.31%
-------- -------- ---- -------- -------- ----
Reserve for loan losses........................... $ (1,008) $ (1,003)
Cash and due from banks........................... 2,278 4,997
Other assets...................................... 8,969 9,429
-------- --------
Total assets...................................... $203,405 $194,001
======== ========
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19
-----------MARCH 2001---------- ------------MARCH 2000---------
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................................ $ 21,138 $ 62 1.17% $ 21,343 $ 68 1.27%
IRA's under $100,000.............................. 7,982 106 5.31% 8,342 103 4.94%
Money market deposits............................. 8,227 53 2.58% 9,942 66 2.66%
Savings deposits.................................. 20,748 126 2.43% 21,637 138 2.55%
Time deposits including IRA's over $100,000....... 23,168 375 6.47% 16,432 241 5.87%
Other time deposits under $100,000................ 49,258 697 5.66% 47,801 630 5.27%
-------- -------- ----- -------- -------- -----
Total interest-bearing deposits................... $130,521 $ 1,419 4.35% $125,497 $ 1,246 3.97%
-------- -------- ----- -------- -------- -----
U.S. treasury short-term borrowings............... 407 6 5.90% 423 7 6.62%
Short-term borrowings - other..................... 0 0 .00% 7,710 112 5.81%
Long-term borrowings.............................. 13,366 200 5.99% 5,695 84 5.90%
Repurchase agreements............................. 19,426 248 5.11% 15,762 192 4.87%
-------- -------- ----- -------- -------- -----
Total interest-bearing liabilities................ $163,720 $ 1,873 4.58% $155,087 $ 1,641 4.23%
-------- -------- ----- -------- -------- -----
Demand deposits................................... $ 12,972 $ 13,344
Other liabilities................................. 1,379 2,450
Stockholders' equity.............................. 25,334 23,120
-------- --------
Total liabilities and capital..................... $203,405 $194,001
======== ========
NET INTEREST INCOME/NET INTEREST MARGIN (4)...... $ 1,600 3.31% $ 1,657 3.67%
======== ===== ======== =====
TAX EQUIVALENT NET INTEREST INCOME/
NET INTEREST MARGIN (5).......................... $ 1,719 3.56% $ 1,767 3.91%
======== ===== ======== =====
(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 2001 and 2000.
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 three month period ending March 31, 2001 and 2000, the provision for
loan losses was $8,000 and $20,000 respectively.
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20
Non-Interest Income
The following table sets forth, for the periods indicated, the major components
of non-interest income:
THREE MONTHS ENDED
MARCH 31,
--------------------
2001 2000
(Dollars in Thousands)
Service charges and fees.................................. $ 144 $ 148
Trust department income................................... 49 33
Invest income............................................. 16 13
Other..................................................... 27 31
-------- --------
Total................................................ $ 236 $ 225
======== ========
For the three months ended March 31, 2001, total non-interest income increased
$11,000 to $236,000 compared with $225,000 for the three month period ended
March 31, 2000. Service charges and fees decreased $4,000 from $148,000 at March
31, 2000 to $144,000 at March 31, 2001. Trust Department income increased from
$33,000 at March 31, 2000 to $49,000 at March 31, 2001. Invest income reflected
a $3,000 increase comparing March 31, 2000 to March 31, 2001. Other non-interest
income decreased from $31,000 at March 31, 2000 to $27,000 at March 31, 2001.
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:
THREE MONTHS ENDED
MARCH 31,
2001 2000
(Dollars in Thousands)
Salaries and wages....................................... $ 517 $ 498
Employee benefits........................................ 170 167
Net occupancy expense.................................... 96 87
Furniture and equipment expense.......................... 132 156
State shares tax......................................... 57 54
Other expense............................................ 306 285
-------- --------
Total............................................... $ 1,278 $ 1,247
======== ========
Non-interest expenses increased 8.3% from $1.2 million at March 31, 2000 to $1.3
million at March 31, 2001.
Salaries increased 3.8% from $498,000 at March 31, 2000 to $517,000 at March 31,
2001. A 1.8% increase was reflected in employee benefits from $167,000 at March
31, 2000 to $170,000 at March 31, 2001. Normal merit increases and higher
starting wages for new employees in the current employee market are responsible
for the salary increases. Increased cost of employee benefits, specifically
health coverage, accounts for the increase in employee benefits.
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21
Occupancy expense and furniture and equipment expense reflects a $15,000
decrease for the first three months of 2001 compared to the first three months
of 2000. Depreciation expense accounted for most of the difference.
Shares tax increased 5.6% from $54,000 at March 31, 2000 to $57,000 at March 31,
2001.
Other expenses increased 7.6% from $278,000 at March 31, 2000 to $299,000 at
March 31, 2001. The increase is attributable to the following major comparisons:
MARCH MARCH
31, 2001 31,2000
-------- -------
Advertising....................................... 20 14
Stationery & Supplies............................. 32 29
Directors Fees.................................... 34 26
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:
MARCH 31, 2001 DECEMBER 31, 2000
MINIMUM MINIMUM
CALCULATED STANDARD CALCULATED STANDARD
RATIOS RATIOS RATIOS RATIOS
Risk Based Ratios:
Tier I Capital to risk-weighted assets.. 20.08% 4.00% 19.59% 4.00%
Total Qualifying Capital to
risk-weighted assets.................. 20.87% 8.00% 20.38% 8.00%
Additionally, certain other ratios also provide capital analysis as follows:
MARCH DECEMBER
31, 2001 31, 2000
Tier I Capital to average assets....................... 12.69% 12.45%
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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22
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 - Nothing to report.
Item 6. Exhibits and Reports on Form 8-K - Nothing to report.
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23
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: May 4, 2001
By Virginia D. Kocher
------------------
Virginia D. Kocher
Treasurer
Date: May 4, 2001
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