CCYY CCCB Bancorp Inc (PK)

Clarion County Community Bank (OTCBB:CCYY), today reported that its net income for the six months ended June 30, 2012 was $527,000 ($0.32 per share), compared to $533,000 ($0.32 per share) for the six months ended June 30, 2011.

President and Chief Executive Officer James Kifer stated, “A very difficult interest rate and competitive environment characterized by historically low interest rates proved extremely challenging for interest rate risk management. As a result, many banks have experienced margin compression. We were able to effectively manage our rate-sensitive assets and liabilities to maintain a well above average net interest margin.” Kifer continued, “In addition, improvements in non-interest income and the retention of a strong efficiency ratio allowed the Bank to attain stability in our income as compared to the same period in 2011.” “We look forward to continued financial strength throughout the remainder of 2012,” concluded Kifer.

At June 30, 2012, the Bank also reported $122.2 million in total assets, $109.3 million in deposits and $86.9 million in loans. These amounts reflect increases in assets of $1.9 million and deposits of $1.3 million and a decrease in loans of $2.4 million from June 30, 2011. The increase in assets was a result of increases in investments of $2.5 million and cash and due from banks of $2.0 slightly offset by the decrease in loans.

Net interest income of $2,291,000 for the six months ended June 30, 2012 was $36,000, or 1.6%, higher than the net interest income of $2,254,000 for the six months ended June 30, 2011. This was due primarily to an increase of $3.9 million in interest earning assets for the six months ended June 30, 2012 compared to the six months ended June 30, 2011.

Clarion County Community Bank’s provision for loan losses was $118,000 for the six months ended June 30, 2012 compared to a provision for loan losses of $198,000 for the six months ended June 30, 2011.

Non-interest income of $217,000 for the six months ended June 30, 2012 was $38,000, or 21.4%, higher than non-interest income for the six months ended June 30, 2011. Fees generated by the origination and sale of residential mortgage loans increased by $62,000.

Non-interest expense for the six months ended June 30, 2012 increased $219,000 or 14.9% from the comparable period in 2011. Losses on real estate owned accounted for $40,000 of the increase, salaries and benefits increased by $128,000, legal collection expenses increased by $33,000 and data processing expenses of $30,000. These increases were partially offset by a decrease in FDIC Assessments of $39,000.

For the six months ended June 30, 2012, the Bank had income tax expenses of $172,000 compared to income tax expenses of $230,000 for the six months ended June 30, 2011 representing an increase in income of $58,000.

The company also reported that its net income for the three months ended June 30, 2012 was $261,000, a decrease of $37,000 from the comparable period ended June 30, 2011. Net interest income decreased $15,000, non-interest income increased by $13,000 primarily from fees generated by the origination and sale of residential mortgage loans. Non-interest expense increased by $107,000 primarily due to an increase in salaries and employee benefits and data processing expenses. In addition, the provision for loan losses decreased by $32,000 for the quarter ended June 30, 2012 from the quarter ended June 30, 2011.

Highlights as of June 30, 2012 and June 30, 2011, and comparing the three and six months ended June 30, 2012 and the three and six months ended June 30, 2011, respectively, include the following (dollars in thousands, except per share data):

    At     At     $ increase/     % increase/ June 30, 2012 June 30, 2011 (decrease) (decrease)   Total assets $ 122,250 $ 120,318 $ 1,932 1.61 %   Total loans 86,932 89,326 (2,394 ) (2.68 %)   Investments 21,787 19,314 2,473 12.80 %   Total deposits 109,290 107,948 1,342 1.24 %  

Shareholders' equity

12,457 11,847 610 5.15 %  

Book value per share

7.50 7.13 0.37 5.19 %  

 

For the six months ended $ increase/ % increase/ June 30, 2012 June 30, 2011 (decrease) (decrease)   Net interest income $ 2,291 $ 2,254 $ 37 1.61 %   Provision for loan losses 118 198 (80 ) (40.40 %)   Other income 217 179 38 21.41 %   Non-interest expense 1,691 1,472 219 8.24 %   Tax expense 172 230 (58 ) (25.24 %)   Net income 527 533 6 (1.25 %)   Earnings per share, diluted $ 0.32 $ 0.32 $ 0.00 0.00 %

 

For the three months ended $ increase/ % increase/ June 30, 2012 June 30, 2011 (decrease) (decrease)   Net interest income $ 1,138 $ 1,153 $ 13 (1.13 %)   Provision for loan losses 52 84 (32 ) (38.10 %)   Other income 122 109 13 11.93 %   Non-interest expense 861 754 107 14.19 %   Tax expense 86 125 (39 ) (31.20 %)   Net income 261 299 38 (12.71 %)   Earnings per share, diluted $ 0.16 $ 0.18 $ 0.02 (11.11 %)  

Clarion County Community Bank is headquartered in Clarion, Pennsylvania, and has branches in the Pennsylvania communities of New Bethlehem and Rimersburg. To learn more, call (814) 226-6000 or visit www.clarionbank.com.

This Release contains forward-looking statements that are not historical facts and include statements about management’s strategies and expectations about our business. There are risks and uncertainties that may cause our actual results and performance to be materially different from results indicated by these forward-looking statements. Factors that might cause a difference include economic conditions; unanticipated loan losses, lack of liquidity; varying and unanticipated costs of collection with respect to nonperforming loans; changes in interest rates, changes in FDIC assessments, deposit flows, loan demand, and real estate values; changes in relationships with major customers; operational risks, including the risk of fraud by employees or outsiders; competition; changes in accounting principles, policies or guidelines; changes in laws or regulations and in the manner in which the regulators enforce same; new technology and other factors affecting our operations, pricing, products and services.