EX-99 2 k19201exv99.txt QUARTERLY BROCHURE, DATED OCTOBER 10, 2007 Exhibit 99 Quarterly Shareholder Brochure of CNB Corporation October 10, 2007 Dear Shareholders: The following provides you a summary for the nine months ended September 30, 2007. Net income for the Corporation for nine months was $2,262,000 or $1.84 basic earnings per share, compared to $2,484,000 or $2.01 basic earnings per share for the same period last year. Last year's net income figure included a one-time income event of $340,000 as a result of the sale of real estate to Walgreens as previously reported to you. Taking this one-time event out of the calculations, our net income for this period increased by $118,000 over the same period last year. Deposits at the end of the third quarter increased 1.03% to $233.4 million, compared with $231.0 million the same time last year. Net loans as of September 30, 2007 increased 5.70% to $173.1 million compared to $163.8 million last year. Assets of the Corporation at the end of the third quarter increased 0.89% to $264.1 million from $261.8 million last year at the same time. The results through the first nine months of 2007 demonstrate we are holding our own in the face of an ongoing depressed Michigan economy. Based on our performance the Board of Directors at its September 27 meeting declared a $0.42 per share dividend payable on October 10 to shareholders of record on September 27. It is the Board's belief that with the Corporation's continued strong capital position that its income, at this point in time, is best used to pay its owners. The Corporation's history of dividends has, I believe, helped support its stock price. The Corporation's $1,000,000 redemption program, begun June 14, 2007, has resulted in the repurchase of 13,400 shares at a cost of $543,610. The redemption program along with the active promotion of market makers has greatly decreased the number of shares available for sale. The changing of the guard from myself to Sue Eno is going very well which was to be expected given Sue's 35 years with the organization. In addition to my own retirement at the end of the year, Barb Joppich, Assistant Vice President and Indian River branch manager, will be retiring. Barb has been with the bank since 1987; she has for these many years been the face of the bank in Indian River. Barb's colleagues and customers will miss her greatly and I know I speak for us all when I wish her and her husband Alan the very best. As always, if you have any questions or observations please call me. Sincerely, James C. Conboy, Jr. President & CEO Consolidated Balance Sheets (UNAUDITED) in thousands of dollars
September 30, ------------------- 2007 2006 -------- -------- ASSETS Cash and due from banks $ 6,197 $ 6,642 Interest-bearing deposits with other financial institutions 1,304 9,065 Federal funds sold 7,900 6,655 -------- -------- Total cash and cash equivalents 15,401 22,362 Securities available for sale 50,412 57,517 Securities held to maturity (market value of $9,189 in 2007 and $4,908 in 2006) 9,139 4,869 Other securities 1,008 1,023 -------- -------- Total investment securities 60,559 63,409 Loans 174,754 165,254 Less allowance for loan losses (1,667) (1,508) -------- -------- Loans, Net 173,087 163,746 Premises and equipment, net 6,434 6,204 Other assets 8,609 6,035 -------- -------- Total assets $264,090 $261,756 ======== ======== LIABILITIES Deposits Noninterest-bearing demand $ 41,473 $ 41,598 Interest-bearing deposits 191,877 189,368 -------- -------- Total deposits 233,350 230,966 Other liabilities 5,392 4,991 -------- -------- Total liabilities 238,742 235,957 SHAREHOLDERS' EQUITY Common Stock 3,065 3,098 Surplus 19,972 20,465 Retained Earnings and Accumulated other Comprehensive Income/(Loss) 2,311 2,236 -------- -------- Total shareholders' equity 25,348 25,799 -------- -------- Total liabilities and shareholders' equity $264,090 $261,756 ======== ========
Consolidated Statement of Income (Unaudited) in thousands of dollars Nine months ended September 30,
2007 2006 2005 ------- ------- ------ INTEREST INCOME Interest and fees on loans $ 9,720 $ 8,943 $7,677 Interest on securities: Taxable 1,501 1,362 1,574 Tax exempt 352 358 440 Other interest income 594 358 189 ------- ------- ------ Total interest income 12,167 11,021 9,880 INTEREST EXPENSE ON DEPOSITS 4,485 3,355 2,215 ------- ------- ------ NET INTEREST INCOME 7,682 7,666 7,665 Provision for loan losses 206 90 90 ------- ------- ------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 7,476 7,576 7,575 ------- ------- ------ NONINTEREST INCOME Service charges and fees 884 765 710 Net realized gains from sale of loans 93 113 183 Loan servicing fees, net of amortization 96 98 94 Gain on sale of premises and equipment 0 517 0 Gain on life Insurance 39 0 300 Other income 140 132 143 ------- ------- ------ Total noninterest income 1,252 1,625 1,430 ------- ------- ------ NONINTEREST EXPENSES Salaries and benefits 3,251 3,284 3,085 Occupancy 887 812 653 Supplies 155 153 125 Other expenses 1,325 1,473 1,730 ------- ------- ------ Total noninterest expenses 5,618 5,722 5,593 ------- ------- ------ INCOME BEFORE INCOME TAXES 3,110 3,479 3,412 Income tax expense 848 995 906 ------- ------- ------ NET INCOME $ 2,262 $ 2,484 $2,506 ======= ======= ====== BASIC NET INCOME PER SHARE $ 1.84 $ 2.01 $ 2.03 ======= ======= ======