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
Date of Report (Date of earliest event reported)
January 23, 2006
CNB FINANCIAL CORPORATION
(Exact name of Registrant as specified in its Charter)
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Pennsylvania |
2-88511 |
25-1450605 |
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(State or other jurisdiction |
(Commission File No.) |
(IRS Employer |
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of incorporation) |
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Identification Number) |
County National Bank
1 South Second Street
PO Box 42
Clearfield, Pennsylvania 16830
(Address of principal executive offices)
Registrant’s telephone number, including area code: (814) 765-9621
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 (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
CNB Financial Corporation, the parent company of County National Bank, announces record annual earnings of $9.1 million or $1.00 diluted earnings per share compared to $7.9 million or $0.86 diluted earnings per share for 2004, representing a 16.1% increase.
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(a) |
Financial Statements: None |
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(b) |
Exhibits: |
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Exhibit 99 |
News Release announcing 2005 earnings |
SIGNATURE
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.
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CNB Financial Corporation |
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Date: January 23, 2006 |
By: /s/ Joseph B. Bower, Jr. |
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Joseph B. Bower, Jr. |
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Treasurer |
Exhibit Index
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Number |
Description |
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Exhibit 99 |
News Release announcing 2005 earnings. |
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Exhibit 99 |
News Release
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Contact: Joseph B. Bower, Jr |
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Treasurer |
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(814)765-9621 FOR IMMEDIATE RELEASE |
CNB FINANCIAL CORPORATION REPORTS RECORD EARNINGS FOR 2005
Clearfield, Pennsylvania – January, 2006
CNB Financial Corporation, the parent company of County National Bank, announces record annual earnings of $9.1 million or $1.00 diluted earnings per share compared to $7.9 million or $0.86 diluted earnings per share for 2004, representing a 16.1% increase. Quarterly earnings for the fourth quarter of 2005 were $2.5 million or $0.27 diluted earnings per share over 2004 fourth quarter earnings of $1.8 million or $0.20 diluted earnings per share. Earnings in the fourth quarter of 2004 were negatively affected by an after tax charge of $910 thousand resulting from an other-than-temporary impairment of a security.
William F. Falger, President and Chief Executive Officer, stated, “We are very pleased to announce the news of our record annual earnings. During 2005, we were able to achieve strong core earnings growth, excluding security gains and impairment charges, driven primarily by loan growth and fee income. This growth resulted from the continued execution of our strategic focus on commercial lending and the acquisition of checking accounts.”
Mr. Falger also commented, “We are very excited about the continued growth of the Corporation with the addition of the ERIEBANK division and the new subsidiary, Holiday Financial Services Corporation. The growth and development of these new ventures, coupled with continued expansion of market share within our existing communities, provide significant growth opportunities in 2006 and beyond.”
Financial Highlights (in thousands) (unaudited)
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Consolidated Balance Sheets |
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31-Dec-05 |
31-Dec-04 |
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Consolidated |
Consolidated |
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Assets |
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Cash and due from banks |
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$ 19,146 |
$ 14,296 |
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Interest-bearing deposits |
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23,871 |
15,616 |
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CASH & CASH EQUIVALENTS |
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43,017 |
29,912 |
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Securities available for sale |
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161,897 |
164,202 |
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NET LOANS |
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505,010 |
476,352 |
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FHLB & Federal Reserve Stock |
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4,789 |
4,792 |
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Premises & Equipment, Net |
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13,912 |
13,761 |
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Bank Owned Life Insurance |
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13,796 |
13,182 |
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Intangible, net |
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11,994 |
11,862 |
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Accrued Interest & Other Assets |
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9,603 |
11,154 |
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TOTAL ASSETS |
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$ 764,018 |
$ 725,217 |
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Liabilities |
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Deposits |
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Non-interest bearing deposits |
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$ 80,874 |
$ 71,968 |
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Interest bearing deposits |
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537,629 |
524,937 |
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TOTAL DEPOSITS |
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618,503 |
596,905 |
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Short-term borrowings |
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2,000 |
2,000 |
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Federal Home Loan Bank Advances |
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58,250 |
40,000 |
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Subordinated Debentures |
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10,310 |
10,310 |
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Accrued expenses and other liab. |
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4,970 |
7,292 |
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TOTAL LIABILITIES |
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694,033 |
656,507 |
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Shareholders' Equity |
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Common stock, $1 par value |
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9,234 |
9,234 |
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Additional paid-in |
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4,160 |
4,243 |
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Retained earnings |
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58,439 |
54,348 |
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Treasury stock, (209,596 shares for 2005 and 123,240 shares for 2004) |
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(3,031) |
(1,797) |
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Accumulated other comprehensive income |
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1,183 |
2,682 |
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TOTAL SHAREHOLDERS' EQUITY |
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69,985 |
68,710 |
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TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
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$ 764,018 |
$ 725,217 |
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Nonperforming Assets |
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$ 2,180 |
$ 2,690 |
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% of Total Assets |
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0.28% |
0.37% |
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Trust Assets |
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$ 179,738 |
$ 192,361 |
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Consolidated Income Statement |
For Quarter Ended |
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Year To Date | |||
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31-Dec-05 |
31-Dec-04 |
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31-Dec-05 |
31-Dec-04 |
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Interest Income |
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Loans including fees |
$ 9,071 |
$ 8,021 |
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$ 34,193 |
$ 31,005 | |
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Deposits with banks |
92 |
53 |
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316 |
117 | |
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Federal funds sold |
162 |
92 |
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394 |
120 | |
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Securities |
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1,758 |
1,484 |
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6,981 |
6,231 |
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TOTAL INTEREST AND DIVIDENDS |
11,083 |
9,650 |
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41,884 |
37,473 | |
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Interest Expense |
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Deposits |
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3,547 |
2,742 |
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12,633 |
10,551 |
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Federal Home Loan Bank advances |
723 |
518 |
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2,637 |
2,075 | |
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Subordinated Debentures |
190 |
139 |
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685 |
502 | |
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Total interest expense |
4,460 |
3,399 |
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15,955 |
13,128 | |
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NET INTEREST INCOME |
6,623 |
6,251 |
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25,929 |
24,345 | |
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Provision for loan losses |
237 |
0 |
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783 |
800 | |
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NET INTEREST AFTER PROVISION |
6,386 |
6,251 |
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25,146 |
23,545 | |
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Other Income |
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Trust income |
279 |
307 |
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977 |
1,005 | |
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Service charges on deposits |
1,078 |
1,183 |
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4,060 |
3,988 | |
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Other charges and fees |
132 |
116 |
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512 |
469 | |
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Net security gains (losses) |
259 |
(3) |
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322 |
313 | |
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Loss on other-than-temporarily impaired security |
-- |
(1,400) |
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(240) |
(1,400) | |
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Gain on sale of loans |
23 |
59 |
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113 |
162 | |
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BOLI |
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136 |
123 |
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614 |
500 |
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Wealth Management |
114 |
68 |
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533 |
208 | |
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Other |
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105 |
185 |
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448 |
377 |
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TOTAL OTHER INCOME |
2,126 |
638 |
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7,339 |
5,622 | |
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Non-Interest Expenses |
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Salaries |
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1,923 |
1,894 |
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7,518 |
7,096 |
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Benefits |
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792 |
795 |
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2,970 |
2,995 |
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Occupancy, net |
682 |
665 |
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2,714 |
2,607 | |
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Data Processing |
442 |
352 |
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1,641 |
1,443 | |
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Amortization of intangible |
142 |
129 |
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524 |
509 | |
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Director's Fees |
53 |
105 |
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471 |
332 | |
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Total other expenses |
1,142 |
1,078 |
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4,520 |
4,450 | |
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Total non-interest expenses |
5,176 |
5,018 |
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20,358 |
19,432 | |
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NET INCOME BEFORE TAXES |
3,336 |
1,871 |
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12,127 |
9,735 | |
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Federal income tax |
874 |
63 |
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2,989 |
1,864 | |
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NET INCOME |
$ 2,462 |
$ 1,808 |
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$ 9,138 |
$ 7,871 | |
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Earnings Per Share, Fully diluted |
$ 0.27 |
$ 0.20 |
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$ 1.00 |
$ 0.86 | |
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Dividends Per Share |
$ 0.14 |
$ 0.13 |
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$ 0.55 |
$ 0.52 | |
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Return on Average Assets (ROA) |
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1.23% |
1.11% | |
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Return on Average Equity (ROE) |
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13.42% |
12.04% | |
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 www.bankcnb.com.