CLEARFIELD, Pa., Oct. 23 /PRNewswire-FirstCall/ -- CNB Financial Corporation , the parent company of County National Bank, today announced reported earnings of $2.3 million or $0.26 diluted earnings per share for the quarter ended September 30, 2006, compared to $2.3 million or $0.25 diluted earnings per share for the same quarter of 2005.
Year to date earnings for the first nine months of 2006 are $7.1 million compared to $6.7 million in the same nine month period of 2005, representing a 6.5% increase in year over year earnings. The largest impact has been the increase in net interest income, $1.7 million, arising from the growth in average earnings assets of $23.4 million, or 3.4%, over last year.
William F. Falger, President and Chief Executive Officer, commented, "Our third quarter financial performance met our expectations driven by strong loan growth resulting from expansion into the Erie and Warren, Pennsylvania markets. We are also pleased that we have been able to increase our net margin during the first nine months of the year to 3.98% from the prior year level of 3.81%. This has occurred while still experiencing an inverted yield curve."
Financial Highlights (in thousands)
(Unaudited) (Unaudited)
30-Sept-06 31-Dec-05 30-Sept-05
Consolidated Balance Sheets Consolidated Consolidated Consolidated
Assets
Cash and due from banks $ 16,182 $ 19,146 $ 14,380
Interest-bearing deposits 6,727 23,871 7,174
CASH & CASH EQUIVALENTS 22,909 43,017 21,554
Securities available for sale 162,555 161,897 180,251
NET LOANS 531,986 505,010 492,237
FHLB & Federal Reserve Stock 4,992 4,789 4,999
Premises & Equipment, Net 14,542 13,912 13,962
Bank Owned Life Insurance 14,321 13,796 13,661
Intangible, net 11,758 11,994 11,611
Accrued Interest & Other Assets 10,745 9,603 10,441
TOTAL ASSETS $773,808 $764,018 $748,716
Liabilities
Non-interest bearing deposits $ 84,433 $ 80,874 $ 75,899
Interest bearing deposits 540,027 537,629 524,662
TOTAL DEPOSITS 624,460 618,503 600,561
Short-term borrowings 4,865 2,000 2,000
Other borrowings 57,000 58,250 59,500
Subordinated Debentures 10,310 10,310 10,310
Accrued expenses and other liab. 5,384 4,970 6,756
TOTAL LIABILITIES 702,019 694,033 679,127
Shareholders' Equity
Common stock (1) - 9,234 9,234
Additional paid-in 13,424 4,160 4,150
Retained earnings 61,780 58,439 57,242
Treasury stock, at cost (287,381
shares for Sept 2006,
209,596 shares for Dec 2005, and
187,267 shares for Sept 2005) (4,141) (3,031) (2,699)
Restricted Stock Awards (174) - -
Accumulated other comprehensive
income 900 1,183 1,662
TOTAL SHAREHOLDERS' EQUITY 71,789 69,985 69,589
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $773,808 $764,018 $748,716
Nonperforming Assets $ 2,244 $ 2,180 $ 3,497
% of Total Assets 0.29% 0.28% 0.47%
Trust Assets $199,701 $179,738 $182,455
(1) On April 18, 2006, the shareholders of the Corporation voted to change
from $1.00 par value to no par stock. The change had no effect on the
dollar amount of total shareholder's equity and simply resulted in a
reclassification between the common stock and additional paid in
capital line items.
Consolidated Income Statement
For Quarter Ended Year To Date
30-Sept-06 30-Sept-05 30-Sept-06 30-Sept-05
Interest Income
Loans including fees $10,243 $8,740 $29,787 $25,122
Deposits with banks 112 88 322 224
Federal funds sold 49 125 266 232
Securities 2,020 1,723 5,852 5,211
TOTAL INTEREST
AND DIVIDENDS 12,424 10,676 36,227 30,789
Interest Expense
Deposits 4,473 3,250 12,433 9,086
Federal Home Loan
Bank advances 717 724 2,149 1,903
Subordinated Debentures 228 177 641 494
Total interest
expense 5,418 4,151 15,223 11,483
NET INTEREST INCOME 7,006 6,525 21,004 19,306
Provision for loan
losses 324 207 1,079 546
NET INTEREST AFTER
PROVISION 6,682 6,318 19,925 18,760
Other Income
Trust income 245 239 749 698
Service charges on
deposits 1,114 1,091 3,108 2,982
Other charges and fees 172 119 462 380
Net security gains
(losses) 2 - 343 63
Loss on other-than-
temporarily impaired
securities - - - (240)
Mortgage Servicing Income 23 26 120 76
BOLI 187 139 525 479
Wealth Management 115 126 388 419
Other 162 121 421 210
TOTAL OTHER INCOME 2,020 1,861 6,116 5,067
Non-Interest Expenses
Salaries & Benefits 2,825 2,489 8,168 7,412
Occupancy, net 705 663 2,107 2,032
Data Processing 447 419 1,484 1,199
Amortization of
intangible 103 79 311 236
Director's Fees 111 119 329 418
Total other expenses 1,324 1,344 4,073 3,739
Total non-interest
expenses 5,515 5,113 16,472 15,036
NET INCOME BEFORE
TAXES 3,187 3,066 9,569 8,791
Federal income tax 844 781 2,460 2,115
NET INCOME $2,343 $2,285 $7,109 $6,676
Earnings Per Share,
Fully diluted $0.26 $0.25 $0.79 $0.73
Dividends Per Share $0.14 $0.14 $0.42 $0.41
Return on Average
Assets (ROA) 1.24% 1.22%
Return on Average
Equity (ROE) 13.42% 13.22%
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/.
