CNB Financial Corporation Reports Earnings for 2009
CLEARFIELD, Pa., Jan. 27 /PRNewswire-FirstCall/ -- CNB Financial Corporation (Nasdaq: CCNE), the parent company of CNB Bank, today announced earnings for the fourth quarter of 2009 and for the year ended December 31, 2009. Highlights include the following:
- Net income of $1.5 million, or $0.18 per share, in the fourth quarter of 2009, compared to net income of $1.8 million, or $0.21 per share, in the fourth quarter of 2008.
- Net income of $8.5 million, or $0.98 per share, for the year ended December 31, 2009, representing a 62.6% increase over 2008.
- Returns on average equity and assets of 12.84% and 0.80%, respectively, for the year ended December 31, 2009.
- Net interest margin of 3.82% for the year ended December 31, 2009.
- Increase in other income, excluding other-than-temporary impairment charges, of $3.7 million from 2008 to 2009. The carrying value of impaired securities is $2.5 million as of December 31, 2009.
- Deposits of $956.9 million at December 31, 2009, an increase of 17.5% over December 31, 2008.
- Loans outstanding of $705.3 million at December 31, 2009, an increase of 5.9% over December 31, 2008.
- Increased loan loss reserve level of 1.37% at December 31, 2009 compared to 1.30% at December 31, 2008.
- Nonperforming asset levels increased to 1.17% of total assets at December 31, 2009 compared to 0.42% at December 31, 2008.
- Growth in the annual dividend rate of 2.3%.
Joseph B. Bower, Jr., President and CEO, commented, "We are very pleased with our deposit growth in 2009 of 17.5% along with 23.6% in 2008. In addition, our loan growth within our markets of 5.9% was very positive considering the stressed conditions of the current economy. With this growth in our total assets, we have also experienced some growth in our net interest income. Finally, the Corporation has continued to maintain a quality loan portfolio, especially when compared to our peers, which positions us well going into 2010."
Consolidated balance sheets (in thousands)
(Unaudited)
12/31/09 12/31/2008
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ASSETS:
Cash and cash equivalents $22,358 $31,256
Securities, time deposits and other equity
interests 359,665 250,511
Net loans, including loans held for sale 705,347 666,169
Premises and equipment, net 22,656 23,578
Other assets 51,565 45,004
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TOTAL ASSETS $1,161,591 $1,016,518
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LIABILITIES:
Deposits $956,858 $814,596
Borrowings and subordinated debentures 122,003 128,817
Other liabilities 13,321 10,638
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TOTAL LIABILITIES 1,092,182 954,051
SHAREHOLDERS' EQUITY 69,409 62,467
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,161,591 $1,016,518
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Financial results - unaudited (in thousands, except share data)
For Quarter Ended Year To Date
(As restated)
12/31/09 12/31/08 12/31/09 12/31/08
-------- -------- -------- --------
Net interest income $9,348 $9,419 $37,402 $36,600
Provision for loan losses 1,501 1,806 4,465 3,787
----- ----- ----- -----
Net interest income after
provision 7,847 7,613 32,937 32,813
Other income, excluding other-
than-temporary impairment charges 2,115 1,958 10,145 6,453
Other-than-temporary impairment
charges 1,232 283 2,443 3,963
Noninterest expenses 7,138 7,059 29,791 28,801
----- ----- ------ ------
Income before income taxes 1,592 2,229 10,848 6,502
Income tax expense 43 428 2,336 1,267
---- ---- ----- -----
NET INCOME $1,549 $1,801 $8,512 $5,235
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Earnings per share, fully diluted $0.18 $0.21 $0.98 $0.61
Dividends per share $0.165 $0.165 $0.66 $0.645
Management restated its financial results for the three month period ended December 31, 2008 due to differences associated with certain assumptions used in the evaluation of a structured pooled trust preferred security for other-than-temporary impairment. However, the Corporation's net income for the year ended December 31, 2008 was not misstated since the revision only involved the timing of the recognition of an other-than-temporary impairment charge of $1,717,000 between the third and fourth quarters of 2008.
As of or for the year As of or for the year
ended ended
December 31, 2009 December 31, 2008
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SELECTED RATIOS
Net interest margin 3.82% 4.33%
Return on:
Average equity 12.84% 7.88%
Average assets 0.80% 0.55%
CAPITAL RATIOS (a)
Total risk-based capital ratio 11.89% 12.00%
Tier 1 capital ratio 10.64% 10.80%
Leverage ratio 7.87% 8.40%
ASSET QUALITY RATIOS
Nonperforming assets to total
assets 1.17% 0.42%
Net charge-offs to average loans 0.49% 0.28%
Allowance for loan losses to net
loans 1.37% 1.30%
(a) The capital ratios as of December 31, 2009 are estimated
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.
CNB Bank's website is www.bankcnb.com.
SOURCE CNB Financial Corporation
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