UNITED STATES
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
July 13, 2012
Date of Report (Date of earliest event reported)
CNB CORPORATION
(Exact name of registrant as specified in its charter)
Michigan | 033-00737 | 38-2662386 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission file number) |
(I.R.S. Employer Identification No.) |
303 North Main Street, Cheboygan MI 49721
(Address of principal executive offices, including Zip Code)
(231) 627-7111
(Registrants telephone number, including area code)
NO CHANGE
(Former name or former address, if changed since last report)
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:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 8.01. Other Events
At its June 28, 2012 Board meeting, the Board of Directors of Citizens National Bank of Cheboygan (the Bank), a wholly owned subsidiary of CNB Corporation (the Corporation), elected a new member to its Board. The new directors name is Rick A. Tromble. Mr. Tromble will serve on the Board of the Bank until the annual election of directors for CNB Corporation where he will be nominated for election to the Board of the Corporation.
As reported in an 8-K dated May 17, 2012 Ms. Eno, CNB Corporation President & CEO communicated to shareholders at the Annual Meeting of Shareholders held May 15, 2012 the potential for the Corporation to deregister its common stock with the Securities and Exchange Commission under Section 12(g)(4) of the Securities Exchange Act of 1934, as amended by the Jumpstart Our Business Startups Act (as amended, the Exchange Act), with the Securities and Exchange Commission. The Corporation will be filing for deregistration under the Exchange Act and deregistration is effective 90 days after filing.
On July 13, 2012, CNB Corporation issued a quarterly shareholder brochure in which it reviewed earnings for the year to date period ending June 30, 2012.
A copy of the information contained in the Corporations brochure is attached hereto as Exhibit 99 and is hereby incorporated by reference into this Form 8-K, and made a part hereof.
ITEM 9.01. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 Quarterly brochure of CNB Corporation dated July 13, 2012
SIGNATURES
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 hereunto duly authorized.
CNB Corporation (Registrant) |
/s/ Susan A. Eno |
Susan A. Eno President and Chief Executive Officer |
Dated: July 13, 2012
Exhibit Index
Exhibit No. |
Description | |
Exhibit 99 | Quarterly brochure of CNB Corporation dated July 13, 2012 |
Exhibit 99
Quarterly Shareholder Brochure of CNB Corporation
July 13, 2012
Dear Shareholder,
We are pleased to announce the first six months of 2012 have resulted in positive income for the Corporation, well ahead of 2011. It is anticipated this trend will continue given the reduction in both other real estate owned and past due loan levels.
Highlights of financial performance for the first half of 2012 follow:
| Assets totaled $252.2 million as of June 30, 2012, compared to assets of $248.3 million at June 30, 2011; an increase of 1.60%. Nearly $5 million of the increase is attributable to the escrow account from the sale of Cheboygan Memorial Hospital which is expected to be liquidated by year-end. The increase in deposits is also attributable, in part, to the escrow account. |
| Loans on June 30, 2012 were $118.2 million, down from $126.9 million on June 30, 2011; a decrease of 6.9%. Loans at December 31, 2011 were $118.4 million. The relatively unchanged loan balance from December 31, 2011 to June 30, 2012 is an indication that new loan growth is keeping pace with loan payoffs and a sign that business and consumer confidence is returning. |
| Allowance for loan losses increased $1.9 million over 2011 and is now 3.4% of total outstanding loans. This reflects managements conservative approach to potential loan losses. |
| Net interest income through June 30, 2012 was $3.7 million, a reduction of $249,000 over the same period in 2011. The sustained low interest rate environment continues to put pressure on both deposit and loan rates. |
| Net realized gains from the sale of loans for the first six months of 2012 was $338,000, compared to $67,000 for the same period in 2011. Mortgage customers are responding well to our marketing efforts and taking advantage of 15-year mortgage rates below 3%. The Company, in turn, is able to take advantage of secondary market pricing to sell the loans for increased gains. |
As noted at the 2012 annual meeting of shareholders the passage of the Jumpstart Our Business Startups (JOBS) Act earlier this year makes it possible for the Corporation to pursue deregistration. Once the deregistration process is complete shareholders will be provided with updated information on the financial reporting and stock trading process. Upon deregistration stock trades can be handled through a broker or in-house using a system similar to what was in place prior to 2007.
At the annual meeting of shareholders the previous years slate of directors were all reelected for another term and at the organizational meeting of the Corporation Vincent J. Hillesheim was reelected as Chairman of the Board of Directors and Thomas J. Ellenberger was reelected as Chairman of the Audit Committee. Additionally, at its June 28, 2012 meeting the Citizens National Bank Board of Directors appointed Rick A. Tromble as a new director. Locally, Rick owns Tromble Bay Farms and is a partner in Cheboygans Fernelius Ford dealership. His business knowledge and dedication to community make Rick a welcome addition to the board.
I continue to invite your comments and questions. Please dont hesitate to call or stop in.
Sincerely,
Susan A. Eno
President & CEO
CNB Corporation
Consolidated Balance Sheets
(UNAUDITED)
in thousands of dollars
June 30, | ||||||||
2012 | 2011 | |||||||
ASSETS |
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Cash and due from banks |
$ | 4,056 | $ | 3,842 | ||||
Interest-bearing deposits with other financial institutions |
14,099 | 11,082 | ||||||
Federal funds sold |
0 | 0 | ||||||
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Total cash and cash equivalents |
18,155 | 14,924 | ||||||
Time deposits with other financial institutions |
14,469 | 9,806 | ||||||
Securities available for sale |
82,156 | 71,065 | ||||||
Securities held to maturity (market value of $4,456 in 2012 and $ 7,699 in 2011) |
4,030 | 7,116 | ||||||
Other securities |
997 | 997 | ||||||
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Total investment securities |
87,183 | 79,178 | ||||||
Loans |
118,174 | 126,954 | ||||||
Less allowance for loan losses |
(3,978 | ) | (2,090 | ) | ||||
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Loans, Net |
114,196 | 124,864 | ||||||
Premises and equipment, net |
5,307 | 5,334 | ||||||
Other assets |
12,916 | 14,149 | ||||||
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Total assets |
$ | 252,226 | $ | 248,255 | ||||
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LIABILITIES |
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Deposits |
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Noninterest-bearing demand |
$ | 54,713 | $ | 46,631 | ||||
Interest-bearing deposits |
174,664 | 175,970 | ||||||
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Total deposits |
229,377 | 222,601 | ||||||
Other liabilities |
4,394 | 4,353 | ||||||
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Total liabilities |
233,771 | 226,954 | ||||||
SHAREHOLDERS' EQUITY |
||||||||
Common Stock |
3,030 | 3,030 | ||||||
Surplus |
19,499 | 19,499 | ||||||
Retained Earnings and Accumulated other |
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Comprehensive Income/(Loss) |
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(4,074 | ) | (1,228 | ) | |||||
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Total shareholders equity |
18,455 | 21,301 | ||||||
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Total liabilities and shareholders equity |
$ | 252,226 | $ | 248,255 | ||||
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Consolidated Statement of Income
(Unaudited)
in thousands of dollars
Six months ended June 30,
2012 | 2011 | 2010 | ||||||||||
INTEREST INCOME |
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Interest and fees on loans |
$ | 3,637 | $ | 3,884 | $ | 4,466 | ||||||
Interest on securities: |
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Taxable |
385 | 549 | 476 | |||||||||
Tax exempt |
169 | 246 | 278 | |||||||||
Other interest income |
108 | 106 | 115 | |||||||||
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Total interest income |
4,299 | 4,785 | 5,335 | |||||||||
INTEREST EXPENSE ON DEPOSITS |
555 | 792 | 1,129 | |||||||||
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NET INTEREST INCOME |
3,744 | 3,993 | 4,206 | |||||||||
Provision for loan losses |
860 | 700 | 375 | |||||||||
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NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
2,884 | 3,293 | 3,831 | |||||||||
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NONINTEREST INCOME |
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Service charges and fees |
488 | 498 | 515 | |||||||||
Net realized gains from sale of loans |
338 | 67 | 80 | |||||||||
Loan servicing fees, net of amortization |
(8 | ) | 46 | 45 | ||||||||
Gains on the sale of assets |
400 | 0 | 0 | |||||||||
Gains on life insurance proceeds |
0 | 0 | 189 | |||||||||
Gain on sale of investment securities |
274 | 0 | 5 | |||||||||
Other income |
210 | 274 | 170 | |||||||||
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Total noninterest income |
1,702 | 885 | 1,004 | |||||||||
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NONINTEREST EXPENSES |
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Salaries and benefits |
2,050 | 1,966 | 1,959 | |||||||||
Occupancy |
468 | 502 | 496 | |||||||||
FDIC insurance premiums |
177 | 219 | 262 | |||||||||
Expenses relating to ORE property |
(10 | ) | 204 | 265 | ||||||||
Other expenses |
1,003 | 1,038 | 952 | |||||||||
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Total noninterest expenses |
3,688 | 3,929 | 3,934 | |||||||||
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INCOME BEFORE INCOME TAXES |
898 | 249 | 901 | |||||||||
Income tax expense |
221 | (33 | ) | 129 | ||||||||
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NET INCOME |
$ | 677 | $ | 282 | $ | 772 | ||||||
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BASIC NET INCOME PER SHARE |
$ | 0.56 | $ | 0.23 | $ | 0.64 | ||||||
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