SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2008
 o
    
    TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 0-19028
 CCFNB BANCORP, INC.
  PENNSYLVANIA
    
    23-2254643(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification Number)232 East Street, Bloomsburg, PA
    
    17815(Address of principal executive offices)
    
    (Zip Code)Issuers telephone number, including area code: (570) 784-4400
 þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o o




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CCFNB Bancorp, Inc. and Subsidiary
Table of Contents
June 30, 2008
   PageFINANCIAL INFORMATION:Consolidated Balance Sheets
    
    2Consolidated Statements of Income
    
    3Consolidated Statements of Cash Flows
    
    4Notes to Consolidated Financial Statements
    
    5 - 17Report of Independent Registered Public Accounting Firm
    
    18Managements Discussion and Analysis of Consolidated Financial Condition
and Results of Operations
    
    19 - 27Controls and Procedures
    
    28OTHER INFORMATION
    
    29SIGNATURES
    
    30 - 33




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CCFNB Bancorp, Inc. and Subsidiary
 
 Consolidated Balance Sheets
 (in Thousands)
 UnauditedJune
    
    
    December30, 2008
    
    
    31, 2007ASSETSCash and due from banks
    
    $
    4,404
    
    
    $
    5,550Interest-bearing deposits with other banks
    
    
    518
    
    
    
    732Federal funds sold
    
    
    6,094
    
    
    
    7,119Investment securities available-for-sale
    
    
    61,223
    
    
    
    57,686Loans, net of unearned income
    
    
    161,240
    
    
    
    161,460Allowance for loan losses
    
    
    1,436
    
    
    
    1,437Net loans
    
    
    159,804
    
    
    
    160,023Premises and equipment, net
    
    
    4,917
    
    
    
    5,087Cash surrender value of bank-owned life insurance
    
    
    7,234
    
    
    
    7,077Accrued interest receivable
    
    
    1,020
    
    
    
    1,082Other assets
    
    
    1,965
    
    
    
    968TOTAL ASSETS
    
    $
    247,179
    
    
    $
    245,324LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIESDeposits:Non-interest bearing
    
    $
    20,721
    
    
    $
    19,394Interest bearing
    
    
    154,500
    
    
    
    151,544Total Deposits
    
    
    175,221
    
    
    
    170,938Short-term borrowings
    
    
    28,973
    
    
    
    29,511Long-term borrowings
    
    
    9,134
    
    
    
    11,137Accrued interest and other expenses
    
    
    1,852
    
    
    
    2,082Other liabilities
    
    
    23
    
    
    
    29TOTAL LIABILITIES
    
    
    215,203
    
    
    
    213,697STOCKHOLDERS EQUITYCommon stock, par value $1.25 per share; authorized
5,000,000 shares; issued and outstanding 1,219,783 shares
in 2008 and 1,226,536 shares in 2007
    
    
    1,525
    
    
    
    1,533Surplus
    
    
    2,105
    
    
    
    2,271Retained earnings
    
    
    28,563
    
    
    
    27,679Accumulated other comprehensive income (loss)
    
    
    (217
    )
    
    
    144TOTAL STOCKHOLDERS EQUITY
    
    
    31,976
    
    
    
    31,627TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    247,179
    
    
    $
    245,324
  - 2 -




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##### 



CCFNB Bancorp, Inc. and Subsidiary
 
 Consolidated Statements of Income
 (in Thousands Except Per Share Data)
 Unaudited
 For the Six
    
    
    For the ThreeMonths Ending
    
    
    Months EndingJune 30
    
    
    June 302008
    
    
    2007
    
    
    2008
    
    
    2007INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable
    
    $
    5,079
    
    
    $
    5,259
    
    
    $
    2,496
    
    
    $
    2,635Tax-exempt
    
    
    298
    
    
    
    231
    
    
    
    154
    
    
    
    115Interest and dividends on investment securities:Taxable
    
    
    1,253
    
    
    
    1,100
    
    
    
    645
    
    
    
    579Tax-exempt
    
    
    84
    
    
    
    97
    
    
    
    39
    
    
    
    47Dividends
    
    
    49
    
    
    
    60
    
    
    
    24
    
    
    
    30Federal funds sold
    
    
    108
    
    
    
    274
    
    
    
    44
    
    
    
    139Deposits in other banks
    
    
    20
    
    
    
    88
    
    
    
    7
    
    
    
    53TOTAL INTEREST AND DIVIDEND INCOME
    
    
    6,891
    
    
    
    7,109
    
    
    
    3,409
    
    
    
    3,598INTEREST EXPENSEDeposits
    
    
    2,026
    
    
    
    1,978
    
    
    
    990
    
    
    
    1,011Short-term borrowings
    
    
    358
    
    
    
    702
    
    
    
    130
    
    
    
    353Long-term borrowings
    
    
    292
    
    
    
    334
    
    
    
    138
    
    
    
    167TOTAL INTEREST EXPENSE
    
    
    2,676
    
    
    
    3,014
    
    
    
    1,258
    
    
    
    1,531Net interest income
    
    
    4,215
    
    
    
    4,095
    
    
    
    2,151
    
    
    
    2,067Provision for loan losses
    
    
    
    
    
    
    30
    
    
    
    
    
    
    
    7NET INTEREST INCOME AFTER PROVISION 

FOR LOAN LOSSES
    
    
    4,215
    
    
    
    4,065
    
    
    
    2,151
    
    
    
    2,060NON-INTEREST INCOMEService charges and fees
    
    
    480
    
    
    
    440
    
    
    
    241
    
    
    
    235Gain on sale of loans
    
    
    106
    
    
    
    64
    
    
    
    59
    
    
    
    43Bank-owned life insurance income
    
    
    133
    
    
    
    143
    
    
    
    68
    
    
    
    73Investment center
    
    
    92
    
    
    
    271
    
    
    
    54
    
    
    
    89Trust department
    
    
    74
    
    
    
    82
    
    
    
    36
    
    
    
    39Other
    
    
    152
    
    
    
    149
    
    
    
    79
    
    
    
    81TOTAL NON-INTEREST INCOME
    
    
    1,037
    
    
    
    1,149
    
    
    
    537
    
    
    
    560NON-INTEREST EXPENSESalaries
    
    
    1,419
    
    
    
    1,501
    
    
    
    716
    
    
    
    730Pensions and other employee benefits
    
    
    470
    
    
    
    448
    
    
    
    225
    
    
    
    217Occupancy, net
    
    
    256
    
    
    
    247
    
    
    
    118
    
    
    
    118Equipment
    
    
    222
    
    
    
    242
    
    
    
    107
    
    
    
    121State shares tax
    
    
    163
    
    
    
    159
    
    
    
    78
    
    
    
    77Professional services
    
    
    132
    
    
    
    129
    
    
    
    66
    
    
    
    68Directors fees
    
    
    97
    
    
    
    93
    
    
    
    51
    
    
    
    46Stationery and supplies
    
    
    54
    
    
    
    95
    
    
    
    27
    
    
    
    54Other
    
    
    571
    
    
    
    605
    
    
    
    297
    
    
    
    312TOTAL NON-INTEREST EXPENSE
    
    
    3,384
    
    
    
    3,519
    
    
    
    1,685
    
    
    
    1,743Income before income taxes
    
    
    1,868
    
    
    
    1,695
    
    
    
    1,003
    
    
    
    877Income tax expense
    
    
    470
    
    
    
    426
    
    
    
    256
    
    
    
    223NET INCOME
    
    $
    1,398
    
    
    $
    1,269
    
    
    $
    747
    
    
    $
    654PER SHARE DATANet income
    
    $
    1.14
    
    
    $
    1.03
    
    
    $
    0.61
    
    
    $
    0.53Cash dividends
    
    $
    0.42
    
    
    $
    0.40
    
    
    $
    0.21
    
    
    $
    0.20Weighted average shares outstanding
    
    
    1,224,552
    
    
    
    1,237,119
    
    
    
    1,224,552
    
    
    
    1,237,119
  - 3 -




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CCFNB Bancorp, Inc. and Subsidiary
 
 Consolidated Statements of Cash Flows
 (in Thousands)
 Unaudited
 For the SixMonths EndingJune 30,2008
    
    
    2007OPERATING ACTIVITIESNet income
    
    $
    1,398
    
    
    $
    1,269Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    
    
    
    
    30Depreciation and amortization
    
    
    188
    
    
    
    202Employee stock purchase plan expense
    
    
    2
    
    
    
    2Premium amortization on investment securities
    
    
    46
    
    
    
    45Discount accretion on investment securities
    
    
    (26
    )
    
    
    (10
    )Deferred income taxes (benefit)
    
    
    (62
    )
    
    
    (40
    )(Gain) on sale of loans
    
    
    (106
    )
    
    
    (64
    )Proceeds from sale of mortgage loans
    
    
    6,182
    
    
    
    3,994Originations of mortgage loans for resale
    
    
    (5,921
    )
    
    
    (4,067
    )(Income) from investment in insurance agency
    
    
    (10
    )
    
    
    (1
    )(Increase) in accrued interest receivable and other assets
    
    
    (678
    )
    
    
    (251
    )Net (increase) in cash surrender value of bank-owned life insurance
    
    
    (157
    )
    
    
    (159
    )Increase in accrued interest, other expenses and other liabilities
    
    
    (236
    )
    
    
    72NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    620
    
    
    
    1,022INVESTING ACTIVITIESPurchase of investment securities available-for-sale
    
    
    (29,600
    )
    
    
    (22,515
    )Proceeds from sales, maturities and redemptions of investment
securities available-for-sale
    
    
    25,497
    
    
    
    16,274Net (increase) decrease in loans
    
    
    64
    
    
    
    2,737Purchases of premises and equipment
    
    
    (18
    )
    
    
    (192
    )NET CASH (USED IN) INVESTING ACTIVITIES
    
    
    (4,057
    )
    
    
    (3,696
    )FINANCING ACTIVITIESNet increase in deposits
    
    
    4,283
    
    
    
    5,019Net increase in short-term borrowings
    
    
    (538
    )
    
    
    2,667Net (decrease) in long-term borrowings
    
    
    (2,003
    )
    
    
    (158
    )Acquisition of treasury stock
    
    
    (304
    )
    
    
    (338
    )Proceeds from issuance of common stock
    
    
    128
    
    
    
    122Cash dividends paid
    
    
    (514
    )
    
    
    (494
    )NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    1,052
    
    
    
    6,818INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    (2,385
    )
    
    
    4,144CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
    
    
    13,401
    
    
    
    15,531CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    11,016
    
    
    $
    19,675SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONCash paid during the year for:Interest
    
    $
    2,717
    
    
    $
    3,068Income taxes
    
    $
    622
    
    
    $
    443
  - 4 -




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CCFNB Bancorp, Inc. and Subsidiary
 
 Notes to Consolidated Financial Statements
 June 30, 2008
 NOTE 1  Summary of Significant Accounting Policies
  Principles of Consolidation
  Nature of Operations & Lines of Business
   Segment Reporting
   - 5 -




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Use of Estimates
  Investment Securities
    Loans
   Past Due Loans
 - 6 -




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Non-Accrual Loans
 Allowance for Loan Losses
    Derivatives
  - 7 -




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Premises and Equipment
  Mortgage Servicing Rights
  Other Real Estate Owned
  Bank Owned Life Insurance
  Investment in Insurance Agency
  - 8 -




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Income Taxes
  Per Share Data
  Cash Flow Information
  Trust Assets and Income
  Recent Accounting Pronouncements
 
 - 9 -




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- 10 -




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- 11 -




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- 12 -




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Advertising Costs
  Reclassification
  NOTE 2  Allowance for Loan Losses
  (Amounts in Thousands)2008
    
    
    2007Balance, beginning of year
    
    $
    1,437
    
    
    $
    1,457Provision charged to operations
    
    
    
    
    
    
    30Loans charged-off
    
    
    (19
    )
    
    
    (47
    )Recoveries
    
    
    18
    
    
    
    29Balance, June 30
    
    $
    1,436
    
    
    $
    1,469
     - 13 -




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NOTE 3  Short-Term Borrowings
  NOTE 4  Long-Term Borrowings
  NOTE 5  Deferred Compensation Plans
   NOTE 6  Stockholders Equity
  (Amounts in Thousands, Except Common Share Data)AccumulatedOtherComprehensiveCommon
    
    
    Common
    
    
    
    
    
    
    Comprehensive
    
    
    Retained
    
    
    Income
    
    
    TreasuryShares
    
    
    Stock
    
    
    Surplus
    
    
    Income
    
    
    Earnings
    
    
    (Loss)
    
    
    Stock
    
    
    TotalBalance at January 1, 2008
    
    
    1,226,536
    
    
    $
    1,533
    
    
    $
    2,271
    
    
    
    
    
    
    $
    27,679
    
    
    $
    144
    
    
    $
    
    
    
    $
    31,627Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,398
    
    
    
    1,398
    
    
    
    
    
    
    
    
    
    
    
    1,398Change in unrealized gain (loss)
on investment securities
available-for-sale net of
reclassification adjustment
and tax effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (361
    )
    
    
    
    
    
    
    (361
    )
    
    
    
    
    
    
    (361
    )TOTAL COMPREHENSIVE 

INCOME
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,037Issuance of 5,247 shares of
common stock under dividend
reinvestment and stock
purchase plans
    
    
    5,247
    
    
    
    7
    
    
    
    121
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    128Recognition of employee stock
purchase plan expense
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2Purchase of 2,000 shares of
treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (304
    )
    
    
    (304
    )Retirement of 12,000 shares of
treasury stock
    
    
    (12,000
    )
    
    
    (15
    )
    
    
    (289
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    304
    
    
    
    Cash dividends $.42 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (514
    )
    
    
    
    
    
    
    
    
    
    
    (514
    )Balance at June 30, 2008
    
    
    1,219,783
    
    
    $
    1,525
    
    
    $
    2,105
    
    
    
    
    
    
    $
    28,563
    
    
    $
    (217
    )
    
    $
    
    
    
    $
    31,976
 - 14 -




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NOTE 7  Acquisition
    NOTE 8  Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk
   (Amounts in Thousands)June
    
    December30, 2008
    
    31, 2007Financial instruments whose contract amounts represent credit risk:Commitments to extend credit
    
    $
    20,891
    
    
    $
    20,492Financial standby letters of credit
    
    
    689
    
    
    
    756Performance standby letters of credit
    
    
    934
    
    
    
    923Dealer floor plans
    
    
    210
    
    
    
    66Loans for resale
    
    
    264
    
    
    
    418
   - 15 -




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- 16 -




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NOTE 9  Managements Assertions and Comments Required to be Provided with Form 10Q
Filing
    - 17 -




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
       
 - 18 -




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At and For the SixMonthsEnded June 30,
    
    At and For the Years Ended December 31,2008
    
    2007
    
    2007
    
    2006
    
    2005
    
    2004
    
    2003Income and Expense:Interest income
    
    $
    6,891
    
    
    $
    7,109
    
    
    $
    14,483
    
    
    $
    13,202
    
    
    $
    11,442
    
    
    $
    10,843
    
    
    $
    11,221Interest expense
    
    
    2,676
    
    
    
    3,014
    
    
    
    6,185
    
    
    
    5,301
    
    
    
    4,131
    
    
    
    3,669
    
    
    
    4,366Net interest income
    
    
    4,215
    
    
    
    4,095
    
    
    
    8,298
    
    
    
    7,901
    
    
    
    7,311
    
    
    
    7,174
    
    
    
    6,855Provision for possible loan losses
    
    
    0
    
    
    
    30
    
    
    
    30
    
    
    
    175
    
    
    
    90
    
    
    
    140
    
    
    
    200Net interest income after loan loss
provision
    
    
    4,215
    
    
    
    4,065
    
    
    
    8,268
    
    
    
    7,726
    
    
    
    7,221
    
    
    
    7,034
    
    
    
    6,655Non-interest income
    
    
    1,037
    
    
    
    1,149
    
    
    
    2,305
    
    
    
    1,900
    
    
    
    1,713
    
    
    
    1,530
    
    
    
    1,508Non-interest expense
    
    
    3,384
    
    
    
    3,519
    
    
    
    7,038
    
    
    
    6,437
    
    
    
    6,077
    
    
    
    5,746
    
    
    
    5,409Income before income taxes
    
    
    1,868
    
    
    
    1,695
    
    
    
    3,535
    
    
    
    3,189
    
    
    
    2,857
    
    
    
    2,818
    
    
    
    2,754Income taxes
    
    
    470
    
    
    
    426
    
    
    
    888
    
    
    
    777
    
    
    
    631
    
    
    
    601
    
    
    
    591Net income
    
    $
    1,398
    
    
    $
    1,269
    
    
    $
    2,647
    
    
    $
    2,412
    
    
    $
    2,226
    
    
    $
    2,217
    
    
    $
    2,163Per Share: (1)Net income
    
    $
    1.14
    
    
    $
    1.03
    
    
    $
    2.15
    
    
    $
    1.93
    
    
    $
    1.76
    
    
    $
    1.74
    
    
    $
    1.69Cash dividends paid
    
    
    .42
    
    
    
    .40
    
    
    
    .82
    
    
    
    .78
    
    
    
    .74
    
    
    
    .70
    
    
    
    .66Average shares outstanding
    
    
    1,224,552
    
    
    
    1,237,119
    
    
    
    1,233,339
    
    
    
    1,249,844
    
    
    
    1,262,171
    
    
    
    1,267,718
    
    
    
    1,281,265Average Balance Sheet:Loans
    
    $
    160,343
    
    
    $
    159,847
    
    
    $
    160,348
    
    
    $
    158,554
    
    
    $
    150,065
    
    
    $
    147,348
    
    
    $
    149,485Investments
    
    
    60,082
    
    
    
    54,782
    
    
    
    58,553
    
    
    
    53,703
    
    
    
    54,943
    
    
    
    61,999
    
    
    
    58,152Other earning assets
    
    
    9,835
    
    
    
    13,692
    
    
    
    12,767
    
    
    
    7,621
    
    
    
    7,503
    
    
    
    5,705
    
    
    
    8,036Total assets
    
    
    248,496
    
    
    
    243,189
    
    
    
    248,476
    
    
    
    236,569
    
    
    
    230,081
    
    
    
    231,477
    
    
    
    230,975Deposits
    
    
    173,756
    
    
    
    170,237
    
    
    
    172,803
    
    
    
    167,024
    
    
    
    167,812
    
    
    
    172,028
    
    
    
    171,956Other interest-bearing liabilities
    
    
    38,593
    
    
    
    40,634
    
    
    
    42,770
    
    
    
    36,676
    
    
    
    32,253
    
    
    
    29,823
    
    
    
    29,772Stockholders equity
    
    
    31,807
    
    
    
    30,327
    
    
    
    31,003
    
    
    
    29,672
    
    
    
    28,789
    
    
    
    28,136
    
    
    
    27,223Balance Sheet Data:Loans
    
    $
    161,240
    
    
    $
    158,024
    
    
    $
    161,460
    
    
    $
    160,641
    
    
    $
    154,271
    
    
    $
    149,900
    
    
    $
    147,631Investments
    
    
    61,223
    
    
    
    59,396
    
    
    
    57,686
    
    
    
    53,486
    
    
    
    53,919
    
    
    
    61,834
    
    
    
    62,775Other earning assets
    
    
    6,612
    
    
    
    14,603
    
    
    
    13,401
    
    
    
    10,712
    
    
    
    6,239
    
    
    
    6,233
    
    
    
    6,882Total assets
    
    
    247,179
    
    
    
    249,885
    
    
    
    245,324
    
    
    
    241,920
    
    
    
    231,218
    
    
    
    235,377
    
    
    
    232,914Deposits
    
    
    175,221
    
    
    
    174,304
    
    
    
    170,938
    
    
    
    169,285
    
    
    
    164,847
    
    
    
    172,487
    
    
    
    171,786Other interest-bearing liabilities
    
    
    38,107
    
    
    
    43,116
    
    
    
    40,648
    
    
    
    40,607
    
    
    
    35,910
    
    
    
    30,080
    
    
    
    32,325Stockholders equity
    
    
    31,976
    
    
    
    30,613
    
    
    
    31,627
    
    
    
    30,248
    
    
    
    29,012
    
    
    
    28,506
    
    
    
    27,603Ratios: (2)Return on average assets
    
    
    1.13
    %
    
    
    1.04
    %
    
    
    1.07
    %
    
    
    1.02
    %
    
    
    .97
    %
    
    
    .96
    %
    
    
    .94
    %Return on average equity
    
    
    8.79
    %
    
    
    8.37
    %
    
    
    8.54
    %
    
    
    8.13
    %
    
    
    7.73
    %
    
    
    7.88
    %
    
    
    7.95
    %Dividend payout ratio
    
    
    36.77
    %
    
    
    38.93
    %
    
    
    38.15
    %
    
    
    40.39
    %
    
    
    41.92
    %
    
    
    40.19
    %
    
    
    39.02
    %Average equity to average assets ratio
    
    
    12.80
    %
    
    
    12.47
    %
    
    
    12.89
    %
    
    
    12.54
    %
    
    
    12.51
    %
    
    
    12.17
    %
    
    
    11.79
    %
 
 (1)
    
    Per share data has been calculated on the weighted average number of shares outstanding.(2)
    
    The ratios for the six month period ending June 30, 2008 and 2007 are annualized.   - 19 -




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##### 



- 20 -




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##### 



ANALYSIS OF AVERAGE ASSETS, LIABILITIES AND CAPITAL EQUITY
AND
NET INTEREST INCOME ON A TAX EQUIVALENT BASIS
 Average Balance Sheet and Rate Analysis
 Six Months Ended June 30, 2008 and 2007Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Income /
    
    
    Yield /
    
    
    Average
    
    
    Income /
    
    
    Yield /Balance
    
    
    Expense
    
    
    Rate
    
    
    Balance
    
    
    Expense
    
    
    Rate(1)
    
    
    (2)
    
    
    
    
    
    
    (1)
    
    
    (2)ASSETS:Interest-bearing deposits with
other financial institutions
    
    $
    1,450
    
    
    $
    20
    
    
    
    2.76
    %
    
    $
    3,358
    
    
    $
    88
    
    
    
    5.24
    %Investment securities (3)
    
    
    60,082
    
    
    
    1,386
    
    
    
    4.76
    %
    
    
    54,782
    
    
    
    1,257
    
    
    
    4.78
    %Federal funds sold
    
    
    8,385
    
    
    
    108
    
    
    
    2.58
    %
    
    
    10,334
    
    
    
    274
    
    
    
    5.30
    %Loans
    
    
    160,343
    
    
    
    5,377
    
    
    
    6.90
    %
    
    
    159,847
    
    
    
    5,490
    
    
    
    7.02
    %Total interest earning assets
    
    $
    230,260
    
    
    $
    6,891
    
    
    
    6.16
    %
    
    $
    228,321
    
    
    $
    7,109
    
    
    
    6.38
    %Reserve for loan losses
    
    
    (1,438
    )
    
    
    
    
    
    
    
    
    
    
    (1,483
    )Cash and due from banks
    
    
    4,704
    
    
    
    
    
    
    
    
    
    
    
    4,381Other assets
    
    
    14,970
    
    
    
    
    
    
    
    
    
    
    
    11,970Total assets
    
    $
    248,496
    
    
    
    
    
    
    
    
    
    
    $
    243,189LIABILITIES AND CAPITAL:Interest bearing deposits
    
    $
    153,747
    
    
    $
    2,026
    
    
    
    2.64
    %
    
    $
    150,892
    
    
    $
    1,978
    
    
    
    2.62
    %Short-term borrowings
    
    
    28,559
    
    
    
    358
    
    
    
    2.51
    %
    
    
    29,395
    
    
    
    702
    
    
    
    4.78
    %Long-term borrowings
    
    
    10,034
    
    
    
    292
    
    
    
    5.82
    %
    
    
    11,239
    
    
    
    334
    
    
    
    5.94
    %Total interest-bearing liabilities
    
    $
    192,340
    
    
    $
    2,676
    
    
    
    2.78
    %
    
    $
    191,526
    
    
    $
    3,014
    
    
    
    3.10
    %Demand deposits
    
    $
    20,009
    
    
    
    
    
    
    
    
    
    
    $
    19,345Other liabilities
    
    
    4,340
    
    
    
    
    
    
    
    
    
    
    
    1,991Stockholders equity
    
    
    31,807
    
    
    
    
    
    
    
    
    
    
    
    30,327Total liabilities and capital
    
    $
    248,496
    
    
    
    
    
    
    
    
    
    
    $
    243,189NET INTEREST INCOME /
NET INTEREST MARGIN (4)
    
    
    
    
    
    $
    4,215
    
    
    
    3.66
    %
    
    
    
    
    
    $
    4,095
    
    
    
    3.59
    %TAX EQUIVALENT NET INTEREST
INCOME /

NET INTEREST MARGIN (5)
    
    
    
    
    
    $
    4,412
    
    
    
    3.83
    %
    
    
    
    
    
    $
    4,264
    
    
    
    3.74
    %
 
 (1)
    
    Average volume information was computed using daily (or monthly) averages for interest earning
and bearing
accounts. Certain balance sheet items utilized quarter end balances for averages. Due to the
availability
of certain daily and monthly average balance information, certain reclassifications were made
to prior period amounts.(2)
    
    Interest on loans includes fee income.(3)
    
    Yield on tax-exempt obligations has been computed on a tax-equivalent basis.(4)
    
    Net interest margin is computed by dividing annualized net interest income by total interest
earning assets.(5)
    
    Interest and yield are presented on a tax-equivalent basis using 34 percent for 2008 and 2007. - 21 -




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##### 



CHANGE IN NET INTEREST INCOME ON A TAX EQUIVALENT BASIS
 Sxi Months Ended June 30, 2008Compared with 2007Increase (Decrease) (2)Volume
    
    
    Rate
    
    
    Total(In thousands)Interest income:Loans (1)
    
    $
    35
    
    
    $
    (192
    )
    
    $
    (157
    )Investments (1)
    
    
    253
    
    
    
    (11
    )
    
    
    242Federal funds sold and other short-term investments
    
    
    (204
    )
    
    
    (368
    )
    
    
    (572
    )Total Interest Income:
    
    
    84
    
    
    
    (571
    )
    
    
    (487
    )Interest expense:Deposits
    
    
    75
    
    
    
    30
    
    
    
    105Short-term borrowings
    
    
    (40
    )
    
    
    (667
    )
    
    
    (707
    )Long term debt
    
    
    (72
    )
    
    
    (13
    )
    
    
    (85
    )Total Interest Expense:
    
    
    (37
    )
    
    
    (650
    )
    
    
    (687
    )Net Interest Income:
    
    $
    121
    
    
    $
    79
    
    
    $
    200
 
 (1)
    
    Interest income is adjusted to a tax equivalent basis using a 34 percent tax rate.(2)
    
    Variances resulting from a combination of changes in volume and rates are allocated to the
categories in proportion to the absolute dollar amounts of the change in each category    Non-Interest Income
  Six Months EndedJune 30,(Dollars in thousands)2008
    
    
    2007Service charges and fees
    
    $
    480
    
    
    $
    440Gain on sale of loans
    
    
    106
    
    
    
    64Bank-owned life insurance income
    
    
    133
    
    
    
    143Investment center
    
    
    92
    
    
    
    271Trust department
    
    
    74
    
    
    
    82Other
    
    
    152
    
    
    
    149Total
    
    $
    1,037
    
    
    $
    1,149
  - 22 -




---



##### 



Non-Interest Expense
  Six Months EndedJune 30,2008
    
    2007(Dollars in Thousands)Salaries
    
    $
    1,419
    
    
    $
    1,501Pensions and other employee benefits
    
    
    470
    
    
    
    448Occupancy expense-net
    
    
    256
    
    
    
    247Equipment
    
    
    222
    
    
    
    242State shares tax
    
    
    163
    
    
    
    159Professional services
    
    
    132
    
    
    
    129Directors fees
    
    
    97
    
    
    
    93Stationery and supplies
    
    
    54
    
    
    
    95Other
    
    
    571
    
    
    
    605Total
    
    $
    3,384
    
    
    $
    3,519
           - 23 -




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##### 



Less than 12 months
    
    12 months or more
    
    TotalDescription of Security
    
    
    
    Unrealized
    
    
    
    Unrealized
    
    
    
    Unrealized(Dollars in thousands)
    
    Fair Value
    
    Loss
    
    Fair Value
    
    Loss
    
    Fair Value
    
    LossObligations of U.S. Government Corporations and Agencies:Mortgage backed
    
    $
    28,232
    
    
    $
    307
    
    
    $
    663
    
    
    $
    4
    
    
    $
    28,895
    
    
    $
    311Other
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0Obligations of State and Political
Subdivisions
    
    
    771
    
    
    
    22
    
    
    
    0
    
    
    
    0
    
    
    
    771
    
    
    
    22Marketable Equity Securities
    
    
    243
    
    
    
    79
    
    
    
    338
    
    
    
    231
    
    
    
    581
    
    
    
    310Total
    
    $
    29,246
    
    
    $
    408
    
    
    $
    1,001
    
    
    $
    235
    
    
    $
    30,247
    
    
    $
    643
 
     June
    
    
    December30, 2008
    
    
    31,2007Past due and non-accrual:Days 30  89
    
    $
    1,929
    
    
    $
    460Days 90 plus
    
    
    6
    
    
    
    80Non-accrual
    
    
    226
    
    
    
    77Total
    
    $
    2,161
    
    
    $
    617
  - 24 -




---



##### 



June 302008(Dollars inthousands)(1) Three months or less
    
    $
    4,617(2) Over three months through 12 months
    
    
    13,570(3) Over one year through three years
    
    
    26,107(4) Over three years through five years
    
    
    4,132(5) Over five years through 15 years
    
    
    18,257(6) Over 15 years
    
    
    286All loans and leases other than closed-end loans secured by first liens on 1-4 family residential
properties with a remaining maturity or repricing frequency of:(1) Three months or less
    
    
    17,680(2) Over three months through 12 months
    
    
    16,295(3) Over one year through three years
    
    
    25,366(4) Over three years through five years
    
    
    12,877(5) Over five years through 15 years
    
    
    21,712(6) Over 15 years
    
    
    142Sub-total
    
    
    161,041Add: Non-accrual loans not included above
    
    
    226Less: Unearned income
    
    
    (27
    )Total Loans and Leases
    
    $
    161,240
      
  - 25 -




---



##### 



For the Six MonthsEnded June 30,(Dollars in thousands)2008
    
    
    2007Average loans outstanding:
    
    $
    160,343
    
    
    $
    159,847Total loans at end of period
    
    
    161,240
    
    
    
    158,024Balance at beginning of period
    
    $
    1,437
    
    
    $
    1,457Total charge-offs
    
    
    (19
    )
    
    
    (47
    )Total recoveries
    
    
    18
    
    
    
    29Net charge-offs
    
    
    (1
    )
    
    
    (18
    )Provision for loan losses
    
    
    0
    
    
    
    30Balance at end of period
    
    $
    1,436
    
    
    $
    1,469Net charge-offs as a percent of average loans outstanding during period
    
    
    
    
    
    
    (.01
    )%Allowance for loan losses as a percent of total loans
    
    
    .89
    %
    
    
    .93
    %
  Capital Adequacy
   June 30, 2008
    
    December 31, 2007Minimum
    
    
    
    
    
    MinimumCalculated
    
    Standard
    
    Calculated
    
    StandardRatios
    
    Ratios
    
    Ratios
    
    RatiosRisk Based Ratios:Tier I Capital to risk-weighted assets
    
    
    19.23
    %
    
    
    4.00
    %
    
    
    18.10
    %
    
    
    4.00
    %Total Qualifying Capital to risk-weighted assets
    
    
    20.14
    %
    
    
    8.00
    %
    
    
    18.93
    %
    
    
    8.00
    %
  June 30,
    
    December 31,2008
    
    2007Tier I Capital to average assets
    
    
    12.36
    %
    
    
    12.71
    %
    - 26 -




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##### 



CCFNB BANCORP, INC.
ISSUER PURCHASES OF EQUITY SECURITIES
 NUMBER OF SHARESPURCHASED AS PART
    
    NUMBER OF SHARESOF PUBLICLY
    
    THAT MAY YET BENUMBER OF SHARES
    
    PRICE PAID PER
    
    ANNOUNCED
    
    PURCHASED UNDERPERIOD
    
    PURCHASED
    
    SHARE
    
    PROGRAM (1)
    
    THE PROGRAM04/01/08  04/30/08
    
    
    4,000
    
    
    $
    25.48
    
    
    
    4,000
    
    
    
    10,00005/01/08  05/31/08
    
    
    2,000
    
    
    $
    25.45
    
    
    
    2,000
    
    
    
    8,00006/01/08  06/30/08
    
    
    4,000
    
    
    $
    24.50
    
    
    
    4,000
    
    
    
    4,000TOTAL
    
    
    10,000
    
    
    
    
    
    
    
    10,000
 
 (1)
    
    This program was announced in 2003 and represents the second buy-back program. The
Board of Directors approved the purchase of 100,000 shares. There is no expiration date
associated with this program. - 27 -




---



##### 



- 28 -




---



##### 



- 29 -




---



##### 



SIGNATURES
  CCFNB BANCORP, INC.
           (Registrant)By
    /s/ Lance O. DiehlLance O. DiehlPresident and CEODate: August 8, 2008 By
    /s/ Virginia D. KocherVirginia D. KocherTreasurerDate: August 8, 2008 - 30 -