CLEARFIELD, Pa., Oct. 23 /PRNewswire-FirstCall/ -- CNB Financial Corporation (Nasdaq: CCNE), the parent company of CNB Bank, today announced increases in net income and earnings per share for the third quarter and first nine months of 2009. Highlights include the following:

    --  Net income of $2.2 million, or $0.26 per share, for the quarter,
        compared to a loss of $744 thousand, or $0.09 per share, in the third
        quarter of 2008.
    --  Net income of $7.0 million, or $0.80 per share, for the first nine
        months of 2009 representing a 103% increase over the same period of
        2008.
    --  Returns on average equity and assets of 14.29% and 0.89%, respectively,
        for the first nine months of 2009.
    --  Net interest margin of 4.03% year to date.
    --  Deposits of $888.6 million, an increase of 10.1% over September 30,
        2008.
    --  Loans outstanding of $686.9 million, an increase of 3.1% over September
        30, 2008.
    --  Increased loan loss reserve level of 1.37% compared to 1.16% at
        September 30, 2008.
    --  Nonperforming asset levels increased to 1.32% of total assets compared
        to 0.49% at September 30, 2008.

    --  Third quarter dividend paid at $0.165 per share.

William F. Falger, President and CEO, commented, "We are pleased with our performance in 2009 despite the continuing economic challenges in our local markets as well as nationally. We continue to experience strong deposit growth while loan growth has been nominal due to economic conditions. Problem loans as measured by nonperforming assets have increased year over year but remain manageable and below peer average. We feel that we remain well-positioned to capitalize on future opportunities as our economy begins its recovery."

    Consolidated balance sheets (in thousands)
                                                                 (Unaudited)
                                             (Unaudited)         (As restated)
                                              9/30/09 12/31/2008     9/30/08
                                              ------- ----------     -------
    ASSETS:
       Cash and cash equivalents              $21,651    $31,256     $68,554
       Securities, time deposits and
        other equity interests                314,464    250,511     205,563
       Net loans, including loans held
        for sale                              686,881    666,169     666,271
       Premises and equipment, net             22,551     23,578      23,233
       Other assets                            44,753     45,004      43,628
                                               ------     ------      ------
             TOTAL ASSETS                  $1,090,300 $1,016,518  $1,007,249
                                           ========== ==========  ==========

    LIABILITIES:
       Deposits                              $888,614   $814,596    $807,433
       Borrowings and subordinated
        debentures                            121,762    128,817     128,827
       Other liabilities                       11,347     10,638       8,411
                                               ------     ------       -----
             TOTAL LIABILITIES              1,021,723    954,051     944,671

    SHAREHOLDERS' EQUITY                       68,577     62,467      62,578
                                               ------     ------      ------

             TOTAL LIABILITIES AND
              SHAREHOLDERS' EQUITY         $1,090,300 $1,016,518  $1,007,249
                                           ========== ==========  ==========

    See the disclosure that follows the financial results on the following
    page regarding restatement of prior period results.



    Financial results - unaudited (in thousands, except share data)

                                     For Quarter Ended     Year To Date
                                       (As restated)      (As restated)
                                    9/30/09      9/30/08  9/30/09   9/30/08
                                    -------      -------  -------   -------

    Net interest income              $9,484       $9,140  $28,054   $27,181
    Provision for loan losses         1,094          716    2,964     1,981
                                      -----          ---    -----     -----

      Net interest income after
       provision                      8,390        8,424   25,090    25,200
    Other income(loss)                2,066       (2,581)   6,819       815
    Noninterest expenses              7,484        7,283   22,653    21,742
                                      -----        -----   ------    ------

    Income (loss) before income
      taxes                           2,972       (1,440)   9,256     4,273
    Income tax expense (benefit)        723         (696)   2,293       839
                                        ---        -----    -----       ---
        NET INCOME (LOSS)            $2,249        $(744)  $6,963    $3,434
                                     ======        =====   ======    ======

    Earnings (loss) per share,
     fully diluted                    $0.26       $(0.09)   $0.80     $0.40
    Dividends per share              $0.165        $0.16   $0.495     $0.48


    Management restated its financial statements as of September 30, 2008 and
    for the three and nine month periods then ended due to an estimation error
    in the level III valuation of a structured pooled trust preferred security
    as well as differences associated with certain assumptions used in the
    evaluation of another structured pooled trust preferred security for
    other-than-temporary impairment.  Because these items were not material to
    the consolidated financial statements taken as a whole, an amended Form
    10-Q for the quarter ended September 30, 2008 was not filed.



                                       As of or for the    As of or for the
                                       nine months ended   nine months ended
                                       September 30, 2009  September 30, 2008
                                       ------------------  ------------------

    SELECTED RATIOS
    Net interest margin                       4.03%                4.39%
    Return on:
         Average equity                      14.29%                6.77%
         Average assets                       0.89%                0.49%

    CAPITAL RATIOS (a)
    Total risk-based capital ratio           12.09%               12.00%
    Tier 1 capital ratio                     10.86%               10.92%
    Leverage ratio                            8.00%                8.64%

    ASSET QUALITY RATIOS
    Nonperforming assets to total assets      1.32%                0.49%
    Net charge-offs to average loans          0.44%                0.20%
    Allowance for loan losses to net loans    1.37%                1.16%

    (a)  The capital ratios as of September 30, 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