CLEARFIELD, Pa., April 21 /PRNewswire-FirstCall/ -- CNB Financial Corporation , the parent company of County National Bank, today announced reported earnings of $2.4 million or $0.27 diluted earnings per share for the quarter ended March 31, 2006, compared to $2.0 million or $0.22 diluted earnings per share for the first quarter of 2005. The 2006 first quarter results represent a 19% increase in earnings over the first quarter of 2005.
Annualized return on average equity for the quarter ended March 31, 2006 was 14.28 percent compared to 12.56 percent for the quarter ended March 31, 2005. Annualized return on average assets was 1.30 percent in the quarter ended March 31, 2006, compared with 1.15 percent in the first quarter of 2005.
William F. Falger, President and Chief Executive Officer, commented, "I am very pleased with our performance during the first quarter, especially the growth we experienced in both loans and deposits. While we enjoyed the benefit of a significant security gain during the quarter, net interest earnings continued to increase despite a challenging interest rate environment."
Financial Highlights (in thousands) (Unaudited) (Unaudited)
Consolidated Balance Sheets 31-Mar-06 31-Dec-05 31-Mar-05
Consolidated Consolidated Consolidated
Assets
Cash and due from banks $13,226 $19,146 $ 13,299
Interest-bearing deposits 14,959 23,871 9,165
CASH & CASH EQUIVALENTS 28,185 43,017 22,464
Securities available for sale 163,403 161,897 177,251
NET LOANS 520,833 505,010 475,487
FHLB & Federal Reserve Stock 4,800 4,789 4,363
Premises & Equipment, Net 13,794 13,912 14,161
Bank Owned Life Insurance 13,964 13,796 13,363
Intangible, net 11,931 11,994 11,776
Accrued Interest & Other Assets 12,100 9,603 11,339
TOTAL ASSETS $769,010 $ 764,018 $730,204
Liabilities
Deposits
Non-interest bearing deposits $80,176 $80,874 $72,909
Interest bearing deposits 543,583 537,629 529,411
TOTAL DEPOSITS 623,759 618,503 602,320
Short-term borrowings 198 2,000 2,000
Federal Home Loan Bank Advances 58,250 58,250 40,000
Subordinated Debentures 10,310 10,310 10,310
Accrued expenses and other liabilities 6,499 4,970 7,306
TOTAL LIABILITIES 699,016 694,033 661,936
Shareholders' Equity
Common stock, $1 par value 9,234 9,234 9,234
Additional paid-in 4,170 4,160 4,142
Retained earnings 59,612 58,439 55,193
Treasury stock, at cost (248,884
shares for March 2006, 209,596 shares
for Dec 2005, and 117,924 shares for
March 2005 (3,602) (3,031) (1,653)
Restricted Stock Awards (155) -- --
Accumulated other comprehensive income 735 1,183 1,352
TOTAL SHAREHOLDERS' EQUITY 69,994 69,985 68,268
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY $769,010 $764,018 $730,204
Nonperforming Assets $2,597 $2,180 $2,933
% of Total Assets 0.34% 0.28% 0.40%
Trust Assets $197,574 $ 179,738 $183,380
Consolidated Income Statement (Unaudited) Three Months Three Months
Ended Ended
March 31, 2006 March 31, 2005
Interest Income
Loans including fees $9,434 $7,931
Deposits with banks 102 66
Federal funds sold 156 83
Securities 1,816 1,716
TOTAL INTEREST AND DIVIDENDS 11,508 9,796
Interest Expense
Deposits 3,783 2,871
Federal Home Loan Bank advances 703 508
Subordinated Debentures 200 151
Total interest expense 4,686 3,530
NET INTEREST INCOME 6,822 6,266
Provision for loan losses 365 167
NET INTEREST AFTER PROVISION 6,457 6,099
Other Income
Trust income 255 220
Service charges on deposits 956 885
Other charges and fees 149 132
Net security gains 341 -
Mortgage Servicing Income 54 27
BOLI 168 181
Wealth Management 114 93
Other 126 (11)
TOTAL OTHER INCOME 2,163 1,527
Non-Interest Expenses
Salaries and Benefits 2,668 2,555
Occupancy, net 738 702
Data Processing 496 391
Amortization of intangible 103 79
Director's Fees 95 128
Total other expenses 1,342 1,206
Total non-interest expenses 5,442 5,061
NET INCOME BEFORE TAXES 3,178 2,565
Federal income tax 747 518
NET INCOME $ 2,431 $2,047
Earnings Per Share, Fully diluted $0.27 $ 0.22
Dividends Per Share $0.14 $ 0.13
Return on Average Assets (ROA) 1.30% 1.15%
Return on Average Equity (ROE) 14.28% 12.56%
Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include operating, legal and regulatory risks; changing economic competitive conditions; and other risks and uncertainties.
County National Bank's website is http://www.bankcnb.com/.
