Us Bank Deposit Guidelines

CNB Financial Corporation Reports First Quarter Earnings for 2013.

CLEARFIELD
 city (1990 pop. 21,435), Davis co., N Utah; inc. 1922. Hill Air Force Base, to the northeast, is the state’s largest employer. Clearfield is the site of Utah’s largest industrial park and has diversified manufacturing.
, Pa., April 15, 2013 /PRNewswire/ —
CNB
 
 Financial
Corporation (“CNB”)(
NASDAQ

:
CCNE

CCNE Comité Consultatif National d’Éthique
CCNE Cisco Certified Network Engineer
CCNE Connecticut Center for a New Economy
), the parent company of CNB
Bank, today announced its earnings for the first quarter of 2013.
Highlights include the following:

* Announced the acquisition of FC Banc Corp. and its subsidiary, The
Farmers Citizens Bank, headquartered in
Bucyrus, Ohio

, expected to close
in the fourth quarter of 2013.

* Net income of $4.3 million, or $0.34 per share, compared to net
income of $4.3 million, or $0.35 per share, in the first quarter of
2012.

* Excluding the effect of securities transactions described under
non-interest income, pre-tax earnings for the first quarter of 2013 was
$5.5 million, an increase of 8.7% over the equivalent pre-tax earnings
of $5.1 million for the first quarter of 2012.

*
Annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 returns on average assets and equity of 0.96% and
11.76%, respectively, for the three months ended March 31, 2013.

* Loans of $932.7 million at March 31, 2013, an increase of $72.7
million, or 8.5%, compared to March 31, 2012.

* Deposits of $1.55 billion at March 31, 2013, an increase of $108.5
million, or 7.5%, compared to March 31, 2012.

*
Tangible

 book value per share of $10.80 per share as of March 31,
2013, an increase of 9.8% over tangible book value per share of $9.84 at
March 31, 2012.

* Total non-performing assets of $16.9 million, or 0.93% of total
assets as of March 31, 2013.

Joseph B. Bower, Jr., President and
CEO

, commented, “We
continue to be pleased with the growth in
earning assets

 that occurred
in the first quarter. This growth has helped to offset the effect of the
contracting net interest margin. Also, increases in assets under
management have resulted in improved non-interest income.”

Net Interest Income and Margin

During the three months ended March 31, 2013, net interest income
increased $774 thousand, or 9.1%, compared to the three months ended
March 31, 2012. Net interest margin on a fully tax equivalent basis was
3.41% for the three months ended March 31, 2013, compared to 3.47% for
the three months ended March 31, 2012.

The yield on earnings assets decreased from 4.55% during the three
months ended March 31, 2012 to 4.18% during the three months ended March
31, 2013 and CNB’s average earning assets increased from $1.55
billion to $1.69 billion, or 9.0%, resulting in a decrease in interest
income of $120 thousand, or 0.7%. Due to growth in core deposits,

interest-bearing

 liabilities have grown significantly during last twelve
months. Interest-bearing deposits during the three months ended March
31, 2013 grew $110.6 million, or 8.7%, as compared to March 31, 2012.
However, interest expense for the three months ended March 31, 2013
decreased by $894 thousand, or 21.6%, compared to the three months ended
March 31, 2012, as a result of decreases in the cost of core
deposits.

CNB’s strong and growing deposit base and low
cost of funds

 has
offset the decline in yield on earning assets as the company has been
prudent in managing its deposit rates, resulting in the increase in net
interest income.

Asset Quality

During the three months ended March 31, 2013, CNB recorded a
provision for loan losses of $930 thousand, as compared to a provision
for loan losses of $1.1 million for the three months ended March 31,
2012.

A commercial mortgage loan that was
impaired

 at
December
 see month.
 31, 2012
was placed on nonaccrual status during the three months ended March 31,
2013, resulting in an increase in nonperforming assets of $2.9 million.
No loan loss reserve was required for this loan as of March 31, 2013 or
December 31, 2012. A loan modified in a
troubled debt restructuring

See debt restructuring.
 that
was nonperforming at December 31, 2012 was partially charged off in the
first quarter of 2013, resulting in a decrease in nonperforming assets
of $595 thousand. An additional provision for loan losses of $135
thousand was recorded for this loan during the three months ended March
31, 2013.

Non-Interest Income

Excluding the effects of the securities transactions described
below, non-interest income was $2.7 million for the three months ended
March 31, 2013, compared to $2.5 million for the three months ended
March 31, 2012. Net realized gains on available-for-sale securities were
$76 thousand during the three months ended March 31, 2013, compared to
$566 thousand during the three months ended March 31, 2012. Net realized
and unrealized gains on securities for which fair value was
elected
  
v. e·lect·ed, e·lect·ing, e·lects

v.tr.
1. To select by vote for an office or for membership.

2. To pick out; select:
 were
$303 thousand and $320 thousand during the three months ended March 31,
2013 and 2012, respectively.

Wealth and asset management fees increased from $387 thousand during
the three months ended March 31, 2012 to $574 thousand during the three
months ended March 31, 2013 due to increases in assets under management
resulting from CNB’s strategic focus to grow its Wealth and Asset
Management Division.

Non-Interest Expenses

Total non-interest expenses increased $668 thousand, or 7.4%, during
the three months ended March 31, 2013 compared to the three months ended
March 31, 2012. Salaries and benefits expenses increased $472 thousand,
or 10.0%, during the three months ended March 31, 2013 compared to the
three months ended March 31, 2012, in part due to routine merit
increases, an increase in average full-time equivalent employees, and
increases in certain employee benefit expenses, such as health insurance
premiums, which continue to increase in line with market conditions.

Total non-interest expenses on an annualized basis in relation to
CNB’s average asset size declined from 2.19% for the three months
ended March 31, 2012 to 2.16% for the three months ended March 31,
2013.

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with

consolidated
  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 assets of
approximately
  
adj.
1. Almost exact or correct:

2.
 $1.8 billion that conducts business
primarily through CNB Bank, CNB’s principal subsidiary. CNB Bank is
a full-service bank engaging in a full range of banking activities and
services, including trust and wealth management services, for
individual, business, governmental, and institutional customers. CNB
Bank operations include a private banking division and 29 full-service
offices in
Pennsylvania
 , one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York
, including ERIEBANK, a division of CNB Bank.
More information about CNB and CNB Bank may be found on the internet at
www.bankcnb.com.

Forward-Looking Statements

This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as
amended
  
v. a·mend·ed, a·mend·ing, a·mends

v.tr.
1. To change for the better; improve:

2.
, and
Section 21E of the Securities Exchange Act of 1934, as amended, with
respect to CNB’s financial condition, liquidity, results of
operations, future performance and business. These forward-looking
statements are intended to be covered by the
safe harbor

 for
“forward-looking statements” provided by the
Private
Securities Litigation Reform Act

 of 1995. Forward-looking statements are
those that are not historical facts. Forward-looking statements include
statements with respect to beliefs, plans, objectives, goals,
expectations, anticipations, estimates and intentions that are subject
to significant risks and uncertainties and are subject to change based
on various factors (some of which are beyond CNB’s control).
Forward-looking statements often include the words “believes,”
“expects,” “anticipates,” “estimates,”
“forecasts,” “intends,” “plans,”
“targets,” “potentially,” “probably,”
“projects,” “outlook” or similar expressions or
future
conditional

 verbs such as “may,” “will,”
“should,” “would” and “could.” Such known
and unknown risks, uncertainties and other factors that could cause the
actual results to differ materially from the statements include, but are
not limited to: changes in general business, industry or economic
conditions or competition; changes in any applicable law, rule,
regulation, policy,
guideline
 Medtalk A series of recommendations by a body of experts in a particular discipline. See Cancer screening guidelines, Cardiac profile guidelines, Gatekeeper guidelines, Harvard guidelines, Transfusion guidelines.
 or practice
governing
  
v. gov·erned, gov·ern·ing, gov·erns

v.tr.
1. To make and administer the public policy and affairs of; exercise sovereign authority in.

2.
 or affecting
financial holding companies and their subsidiaries or with respect to
tax or accounting principles or otherwise; adverse changes or conditions
in capital and financial markets; changes in interest rates; higher than
expected costs or other difficulties related to integration of combined
or merged businesses; the inability to realize expected cost savings or
achieve other anticipated benefits in connection with business
combinations and other acquisitions, including the previously announced
acquisition of FC Banc Corp.; changes in the quality or composition of
CNB’s loan and investment portfolios; adequacy of loan loss
reserves; increased competition; loss of certain key officers; continued
relationships with major customers; deposit
attrition

; rapidly changing
technology; unanticipated
regulatory
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 or
judicial proceedings
 n. any action by a judge re: trials, hearings, petitions, or other matters formally before the court. (See: judicial)
 and
liabilities and other costs; changes in the cost of funds, demand for
loan products or demand for
financial services

; and other economic,
competitive, governmental or technological factors affecting CNB’s
operations, markets, products, services and prices. Some of these and
other factors are discussed in CNB’s annual and quarterly reports
previously filed with the SEC. Such factors could cause actual results
to differ materially from those in the forward-looking statements.

The forward-looking statements are based upon management’s
beliefs and assumptions and are made as of the date of this press
release. CNB undertakes no obligation to publicly update or revise any
forward-looking statements included in this press release or to update
the reasons why actual results could differ from those contained in such
statements, whether as a result of new information, future events or
otherwise, except to the extent required by law. In light of these
risks, uncertainties and assumptions, the forward-looking events
discussed in this press release might not occur and you should not put
undue reliance on any forward-looking statements.

Financial Tables

The following tables supplement the financial highlights described
previously for CNB Financial Corporation.

SOURCE CNB Financial Corporation