UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
September 22, 2008
Date of Report (Date of earliest event reported)
CNB CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 033-00737 38-2662386
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) file number) Identification No.)
303 North Main Street, Cheboygan MI 49721
(Address of principal executive offices, including Zip Code)
(231) 627-7111
(Registrant's telephone number, including area code)
NO CHANGE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01. Other Events
In connection with the action taken by the United States Treasury Department and
the Federal Housing Finance Agency with respect to the Federal Home Loan
Mortgage Corporation ("Freddie Mac"), CNB Corporation (the "Company") announced
today that in the third quarter 2008 it will record other-than-temporary
impairment and take a non-cash charge to earnings for its investments in Money
Market Preferred investments backed by Freddie Mac. The Company's wholly-owned
bank subsidiary, Citizens national Bank (the "Bank"), owns a money market
preferred investment in Freddie Mac at a cost of $2 million. As a result of the
action taken to place Freddie Mac in conservatorship, dividends for these
securities have been suspended and the market value of these securities has
decreased substantially. The Company will report the effects of the decrease in
value in its quarterly report for the period ended September 30, 2008. The
Company, including its subsidiary bank, does not hold any common or any other
equity securities issued by Freddie Mac. We do not anticipate that the loss will
affect the Company's "well-capitalized" status for all regulatory capital
ratios.
ITEM 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 Message to shareholders of CNB Corporation dated September 22, 2008
FORWARD-LOOKING STATEMENTS
When used in this filing and in future filings involving the Company with the
Securities and Exchange Commission, in the Company's press releases or other
public or shareholder communications, or in oral statements made with the
approval of an authorized executive officer, the words or phrases, "anticipate,"
"would be," "will allow," "intends to," "will likely result," "are expected to,"
"will continue," "is anticipated," "estimated," "project," "intends" or similar
expressions are intended to identify, "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such statements
are subject to risks and uncertainties, including but not limited to changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, the risks of lending and
investing activities, and competition, all or some of which could cause actual
results to differ materially from historical earnings and those presently
anticipated or projected.
The Company does not undertake-and specifically declines any obligation- to
publically release the results of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.
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 hereunto duly authorized.
CNB Corporation
(Registrant)
/s/ Susan A. Eno
----------------------------------------
Susan A. Eno
President and Chief Executive Officer
Dated: September 22, 2008