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 March 31, 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
(State or other jurisdiction of 
incorporation or organization)
    
    23-2254643
(I.R.S. Employer
Identification Number)232 East Street, Bloomsburg, PA
(Address of principal executive offices)
    
    17815
(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




---



##### 



CCFNB
Bancorp, Inc. and Subsidiary
Table of Contents
March 31, 2008
 PageFINANCIAL INFORMATION:Consolidated Balance Sheets
    
    2Consolidated Statements of Income
    
    3Consolidated Statements of Cash Flows
    
    4Notes to Consolidated Financial Statements
    
    5  15Report of Independent Registered Public Accounting Firm
    
    16Managements Discussion and Analysis of Consolidated Financial Condition
and Results of Operations
    
    17  25Controls and Procedures
    
    26OTHER INFORMATION
    
    27SIGNATURES
    
    28  31




---



##### 



CCFNB Bancorp, Inc. and Subsidiary
Consolidated Balance Sheets
(in Thousands)
 UnauditedMarch
    
    
    December31, 2008
    
    
    31, 2007ASSETSCash and due from banks
    
    $
    4,957
    
    
    $
    5,550Interest-bearing deposits with other banks
    
    
    678
    
    
    
    732Federal funds sold
    
    
    9,845
    
    
    
    7,119Investment securities available-for-sale
    
    
    59,260
    
    
    
    57,686Loans, net of unearned income
    
    
    159,544
    
    
    
    161,460Allowance for loan losses
    
    
    1,438
    
    
    
    1,437Net loans
    
    
    158,106
    
    
    
    160,023Premises and equipment, net
    
    
    4,995
    
    
    
    5,087Cash surrender value of bank-owned life insurance
    
    
    7,147
    
    
    
    7,077Accrued interest receivable
    
    
    1,195
    
    
    
    1,082Other assets
    
    
    1,096
    
    
    
    968TOTAL ASSETS
    
    $
    247,279
    
    
    $
    245,324LIABILITIES AND STOCKHOLDERS EQUITYLIABILITIESDeposits:Non-interest bearing
    
    $
    20,172
    
    
    $
    19,394Interest bearing
    
    
    154,171
    
    
    
    151,544Total Deposits
    
    
    174,343
    
    
    
    170,938Short-term borrowings
    
    
    29,483
    
    
    
    29,511Long-term borrowings
    
    
    9,136
    
    
    
    11,137Accrued interest and other expenses
    
    
    1,903
    
    
    
    2,082Other liabilities
    
    
    19
    
    
    
    29TOTAL LIABILITIES
    
    
    214,884
    
    
    
    213,697STOCKHOLDERS EQUITYCommon stock, par value $1.25 per share; authorized
5,000,000 shares; issued and outstanding
1,227,364 shares
in 2008 and 1,226,536 shares in 2007
    
    
    1,533
    
    
    
    1,533Surplus
    
    
    2,291
    
    
    
    2,271Retained earnings
    
    
    28,072
    
    
    
    27,679Accumulated other comprehensive income (loss)
    
    
    499
    
    
    
    144TOTAL STOCKHOLDERS EQUITY
    
    
    32,395
    
    
    
    31,627TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    247,279
    
    
    $
    245,324
  -2-




---



##### 



CCFNB Bancorp, Inc. and Subsidiary
Consolidated Statements of Income
(in Thousands Except Per Share Data)
Unaudited
 For the ThreeMonths EndingMarch 31,2008
    
    
    2007INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable
    
    $
    2,583
    
    
    $
    2,624Tax-exempt
    
    
    144
    
    
    
    116Interest and dividends on investment securities:Taxable
    
    
    608
    
    
    
    521Tax-exempt
    
    
    45
    
    
    
    50Dividends
    
    
    25
    
    
    
    30Federal funds sold
    
    
    64
    
    
    
    135Deposits in other banks
    
    
    13
    
    
    
    35TOTAL INTEREST AND DIVIDEND INCOME
    
    
    3,482
    
    
    
    3,511INTEREST EXPENSEDeposits
    
    
    1,036
    
    
    
    967Short-term borrowings
    
    
    228
    
    
    
    349Long-term borrowings
    
    
    154
    
    
    
    167TOTAL INTEREST EXPENSE
    
    
    1,418
    
    
    
    1,483Net interest income
    
    
    2,064
    
    
    
    2,028Provision for loan losses
    
    
    
    
    
    
    23NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
    
    
    2,064
    
    
    
    2,005NON-INTEREST INCOMEService charges and fees
    
    
    239
    
    
    
    205Gain on sale of loans
    
    
    47
    
    
    
    21Bank-owned life insurance income
    
    
    65
    
    
    
    70Investment center
    
    
    38
    
    
    
    182Trust department
    
    
    38
    
    
    
    43Other
    
    
    73
    
    
    
    68TOTAL NON-INTEREST INCOME
    
    
    500
    
    
    
    589NON-INTEREST EXPENSESalaries
    
    
    703
    
    
    
    771Pensions and other employee benefits
    
    
    245
    
    
    
    231Occupancy, net
    
    
    138
    
    
    
    129Equipment
    
    
    115
    
    
    
    121State shares tax
    
    
    85
    
    
    
    82Professional services
    
    
    66
    
    
    
    61Directors fees
    
    
    46
    
    
    
    47Stationery and supplies
    
    
    27
    
    
    
    41Other
    
    
    274
    
    
    
    293TOTAL NON-INTEREST EXPENSE
    
    
    1,699
    
    
    
    1,776Income before income taxes
    
    
    865
    
    
    
    818Income tax expense
    
    
    214
    
    
    
    203NET INCOME
    
    $
    651
    
    
    $
    615PER SHARE DATANet income
    
    $
    0.53
    
    
    $
    0.50Cash dividends
    
    $
    0.21
    
    
    $
    0.20Weighted average shares outstanding
    
    
    1,227,035
    
    
    
    1,239,726
  -3-




---



##### 



CCFNB Bancorp, Inc. and Subsidiary
Consolidated Statements of Cash Flows
(in Thousands)
Unaudited
 For the ThreeMonths EndingMarch 31,2008
    
    
    2007OPERATING ACTIVITIESNet income
    
    $
    651
    
    
    $
    615Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    
    
    
    
    22Depreciation and amortization
    
    
    94
    
    
    
    95Employee stock purchase plan expense
    
    
    2
    
    
    
    2Premium amortization on investment securities
    
    
    18
    
    
    
    18Discount accretion on investment securities
    
    
    (20
    )
    
    
    (5
    )Deferred income taxes (benefit)
    
    
    (34
    )
    
    
    (19
    )(Gain) on sale of loans
    
    
    (47
    )
    
    
    (21
    )Proceeds from sale of mortgage loans
    
    
    2,579
    
    
    
    979Originations of mortgage loans for resale
    
    
    (2,381
    )
    
    
    (897
    )(Income) from investment in insurance agency
    
    
    (5
    )
    
    
    (1
    )(Increase) in accrued interest receivable and other assets
    
    
    (384
    )
    
    
    (244
    )Net (increase) in cash surrender value of bank-owned life insurance
    
    
    (70
    )
    
    
    (76
    )Increase (decrease) in accrued interest, other expenses and other liabilities
    
    
    (189
    )
    
    
    14NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    214
    
    
    
    482INVESTING ACTIVITIESPurchase of investment securities available-for-sale
    
    
    (14,942
    )
    
    
    (11,156
    )Proceeds from sales, maturities and redemptions of investment
securities available-for-sale
    
    
    13,909
    
    
    
    9,701Net (increase) decrease in loans
    
    
    1,763
    
    
    
    909Purchases of premises and equipment
    
    
    (1
    )
    
    
    (25
    )NET CASH (USED IN) INVESTING ACTIVITIES
    
    
    729
    
    
    
    (571
    )FINANCING ACTIVITIESNet increase in deposits
    
    
    3,405
    
    
    
    3,262Net (decrease) in short-term borrowings
    
    
    (28
    )
    
    
    (994
    )Net (decrease) in long-term borrowings
    
    
    (2,001
    )
    
    
    (3
    )Acquisition of treasury stock
    
    
    (52
    )
    
    
    (172
    )Proceeds from issuance of common stock
    
    
    70
    
    
    
    70Cash dividends paid
    
    
    (258
    )
    
    
    (248
    )NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    1,136
    
    
    
    1,915INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    2,079
    
    
    
    1,826CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
    
    
    13,401
    
    
    
    15,531CASH AND CASH EQUIVALENTS AT END OF PERIOD
    
    $
    15,480
    
    
    $
    17,357SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONCash paid during the year for:Interest
    
    $
    1,424
    
    
    $
    1,471Income taxes
    
    $
    402
    
    
    $
    41
  -4-




---



##### 



CCFNB Bancorp, Inc. and Subsidiary  Notes to Consolidated Financial Statements  March 31, 2008
 NOTE 1  Summary of Significant Accounting Policies
  Principles of Consolidation
  Nature of Operations & Lines of Business
   Segment Reporting
   -5-




---



##### 



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




---



##### 



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




---



##### 



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




---



##### 



Income Taxes
  Per Share Data
  Cash Flow Information
  Trust Assets and Income
  Recent Accounting Pronouncements
   -9-
             -10-
             -11-




---



##### 



Advertising Costs
  Reclassification
  NOTE 2  Allowance for Loan Losses
  (Amounts in Thousands)2008
    
    
    2007Balance, beginning of year
    
    $
    1,437
    
    
    $
    1,457Provision charged to operations
    
    
    
    
    
    
    23Loans charged-off
    
    
    (11
    )
    
    
    (11
    )Recoveries
    
    
    12
    
    
    
    27Balance, March 31
    
    $
    1,438
    
    
    $
    1,496
   -12-




---



##### 



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
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    651
    
    
    
    651
    
    
    
    
    
    
    
    
    
    
    
    651Change in unrealized gain (loss)
on investment securities
available-for-sale net of
reclassification adjustment
and tax effects
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    355
    
    
    
    
    
    
    
    355
    
    
    
    
    
    
    
    355TOTAL COMPREHENSIVE
INCOME
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    1,006Issuance of 2,828 shares of
common stock under dividend
reinvestment and stock
purchase plans
    
    
    2,828
    
    
    
    3
    
    
    
    67
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    70Recognition of employee stock
purchase plan expense
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2Purchase of 2,000 shares of
treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (52
    )
    
    
    (52
    )Retirement of 2,000 shares of
treasury stock
    
    
    (2,000
    )
    
    
    (3
    )
    
    
    (49
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52
    
    
    
    Cash dividends $.21 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (258
    )
    
    
    
    
    
    
    
    
    
    
    (258
    )Balance at March 31, 2008
    
    
    1,227,364
    
    
    $
    1,533
    
    
    $
    2,291
    
    
    
    
    
    
    $
    28,072
    
    
    $
    499
    
    
    $
    
    
    
    $
    32,395
 -13-




---



##### 



NOTE 7  Acquisition Commitment
   NOTE 8  Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk
   (Amounts in Thousands)March
    
    December31, 2008
    

31, 2007Financial instruments whose contract amounts represent credit risk:Commitments to extend credit
    
    $
    19,402
    
    
    $
    20,492Financial standby letters of credit
    
    
    777
    
    
    
    756Performance standby letters of credit
    
    
    1,144
    
    
    
    923Dealer floor plans
    
    
    109
    
    
    
    66Loans for resale
    
    
    265
    
    
    
    418
     -14-




---



##### 



NOTE 9  Managements Assertions and Comments Required to be Provided with Form 10Q
Filing
    -15-




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
       
 -16-




---



##### 



At and For the ThreeMonthsEnded March 31,
    
    
    At and For the Years Ended December 31,2008
    
    
    2007
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003Income and Expense:Interest income
    
    $
    3,482
    
    
    $
    3,511
    
    
    $
    14,483
    
    
    $
    13,202
    
    
    $
    11,442
    
    
    $
    10,843
    
    
    $
    11,221Interest expense
    
    
    1,418
    
    
    
    1,483
    
    
    
    6,185
    
    
    
    5,301
    
    
    
    4,131
    
    
    
    3,669
    
    
    
    4,366Net interest income
    
    
    2,064
    
    
    
    2,028
    
    
    
    8,298
    
    
    
    7,901
    
    
    
    7,311
    
    
    
    7,174
    
    
    
    6,855Provision for possible loan losses
    
    
    0
    
    
    
    23
    
    
    
    30
    
    
    
    175
    
    
    
    90
    
    
    
    140
    
    
    
    200Net interest income after loan loss
provision
    
    
    2,064
    
    
    
    2,005
    
    
    
    8,268
    
    
    
    7,726
    
    
    
    7,221
    
    
    
    7,034
    
    
    
    6,655Non-interest income
    
    
    500
    
    
    
    589
    
    
    
    2,305
    
    
    
    1,900
    
    
    
    1,713
    
    
    
    1,530
    
    
    
    1,508Non-interest expense
    
    
    1,699
    
    
    
    1,776
    
    
    
    7,038
    
    
    
    6,437
    
    
    
    6,077
    
    
    
    5,746
    
    
    
    5,409Income before income taxes
    
    
    865
    
    
    
    818
    
    
    
    3,535
    
    
    
    3,189
    
    
    
    2,857
    
    
    
    2,818
    
    
    
    2,754Income taxes
    
    
    214
    
    
    
    203
    
    
    
    888
    
    
    
    777
    
    
    
    631
    
    
    
    601
    
    
    
    591Net income
    
    $
    651
    
    
    $
    615
    
    
    $
    2,647
    
    
    $
    2,412
    
    
    $
    2,226
    
    
    $
    2,217
    
    
    $
    2,163Per Share: (1)Net income
    
    $
    .53
    
    
    $
    .50
    
    
    $
    2.15
    
    
    $
    1.93
    
    
    $
    1.76
    
    
    $
    1.74
    
    
    $
    1.69Cash dividends paid
    
    
    .21
    
    
    
    .20
    
    
    
    .82
    
    
    
    .78
    
    
    
    .74
    
    
    
    .70
    
    
    
    .66Average shares outstanding
    
    
    1,227,035
    
    
    
    1,239,726
    
    
    
    1,233,339
    
    
    
    1,249,844
    
    
    
    1,262,171
    
    
    
    1,267,718
    
    
    
    1,281,265Average Balance Sheet:Loans
    
    $
    160,707
    
    
    $
    160,770
    
    
    $
    160,348
    
    
    $
    158,554
    
    
    $
    150,065
    
    
    $
    147,348
    
    
    $
    149,485Investments
    
    
    59,626
    
    
    
    51,941
    
    
    
    58,553
    
    
    
    53,703
    
    
    
    54,943
    
    
    
    61,999
    
    
    
    58,152Other earning assets
    
    
    9,931
    
    
    
    12,745
    
    
    
    12,767
    
    
    
    7,621
    
    
    
    7,503
    
    
    
    5,705
    
    
    
    8,036Total assets
    
    
    249,173
    
    
    
    239,674
    
    
    
    248,476
    
    
    
    236,569
    
    
    
    230,081
    
    
    
    231,477
    
    
    
    230,975Deposits
    
    
    170,840
    
    
    
    168,371
    
    
    
    172,803
    
    
    
    167,024
    
    
    
    167,812
    
    
    
    172,028
    
    
    
    171,956Other interest-bearing liabilities
    
    
    38,962
    
    
    
    40,590
    
    
    
    42,770
    
    
    
    36,676
    
    
    
    32,253
    
    
    
    29,823
    
    
    
    29,772Stockholders equity
    
    
    31,466
    
    
    
    29,996
    
    
    
    31,003
    
    
    
    29,672
    
    
    
    28,789
    
    
    
    28,136
    
    
    
    27,223Balance Sheet Data:Loans
    
    $
    159,544
    
    
    $
    159,689
    
    
    $
    161,460
    
    
    $
    160,641
    
    
    $
    154,271
    
    
    $
    149,900
    
    
    $
    147,631Investments
    
    
    59,260
    
    
    
    54,970
    
    
    
    57,686
    
    
    
    53,486
    
    
    
    53,919
    
    
    
    61,834
    
    
    
    62,775Other earning assets
    
    
    10,523
    
    
    
    12,940
    
    
    
    13,401
    
    
    
    10,712
    
    
    
    6,239
    
    
    
    6,233
    
    
    
    6,882Total assets
    
    
    247,279
    
    
    
    244,492
    
    
    
    245,324
    
    
    
    241,920
    
    
    
    231,218
    
    
    
    235,377
    
    
    
    232,914Deposits
    
    
    174,343
    
    
    
    172,547
    
    
    
    170,938
    
    
    
    169,285
    
    
    
    164,847
    
    
    
    172,487
    
    
    
    171,786Other interest-bearing liabilities
    
    
    38,619
    
    
    
    39,610
    
    
    
    40,648
    
    
    
    40,607
    
    
    
    35,910
    
    
    
    30,080
    
    
    
    32,325Stockholders equity
    
    
    32,395
    
    
    
    30,542
    
    
    
    31,627
    
    
    
    30,248
    
    
    
    29,012
    
    
    
    28,506
    
    
    
    27,603Ratios: (2)Return on average assets
    
    
    1.05
    %
    
    
    1.03
    %
    
    
    1.07
    %
    
    
    1.02
    %
    
    
    .97
    %
    
    
    .96
    %
    
    
    .94
    %Return on average equity
    
    
    8.28
    %
    
    
    8.20
    %
    
    
    8.54
    %
    
    
    8.13
    %
    
    
    7.73
    %
    
    
    7.88
    %
    
    
    7.95
    %Dividend payout ratio
    
    
    39.62
    %
    
    
    40.33
    %
    
    
    38.15
    %
    
    
    40.39
    %
    
    
    41.92
    %
    
    
    40.19
    %
    
    
    39.02
    %Average equity to average assets ratio
    
    
    12.63
    %
    
    
    12.52
    %
    
    
    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 three month period ending March 31, 2008 and 2007 are annualized.   17




---



##### 



18




---



##### 



ANALYSIS OF AVERAGE ASSETS, LIABILITIES AND CAPITAL EQUITY
AND
NET INTEREST INCOME ON A TAX EQUIVALENT BASIS
 Average Balance Sheet and Rate Analysis
 Three Months Ended March 31, 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
    
    $
    1,730
    
    
    $
    13
    
    
    
    3.06
    %
    
    $
    2,662
    
    
    $
    35
    
    
    
    5.26
    %Investment securities (3)
    
    
    59,626
    
    
    
    678
    
    
    
    4.70
    %
    
    
    51,941
    
    
    
    601
    
    
    
    4.83
    %Federal funds sold
    
    
    8,201
    
    
    
    64
    
    
    
    3.12
    %
    
    
    10,083
    
    
    
    135
    
    
    
    5.36
    %Loans
    
    
    160,707
    
    
    
    2,727
    
    
    
    6.97
    %
    
    
    160,770
    
    
    
    2,740
    
    
    
    6.97
    %Total interest earning assets
    
    $
    230,264
    
    
    $
    3,482
    
    
    
    6.22
    %
    
    $
    225,456
    
    
    $
    3,511
    
    
    
    6.38
    %Reserve for loan losses
    
    
    (1,438
    )
    
    
    
    
    
    
    
    
    
    
    (1,474
    )Cash and due from banks
    
    
    4,611
    
    
    
    
    
    
    
    
    
    
    
    4,306Other assets
    
    
    15,736
    
    
    
    
    
    
    
    
    
    
    
    11,386Total assets
    
    $
    249,173
    
    
    
    
    
    
    
    
    
    
    $
    239,674LIABILITIES AND CAPITAL:Interest bearing deposits
    
    $
    152,363
    
    
    $
    1,036
    
    
    
    2.72
    %
    
    $
    149,883
    
    
    $
    967
    
    
    
    2.58
    %Short-term borrowings
    
    
    28,705
    
    
    
    228
    
    
    
    3.18
    %
    
    
    29,295
    
    
    
    349
    
    
    
    4.77
    %Long-term borrowings
    
    
    10,257
    
    
    
    154
    
    
    
    6.01
    %
    
    
    11,295
    
    
    
    167
    
    
    
    5.91
    %Total interest-bearing liabilities
    
    $
    191,325
    
    
    $
    1,418
    
    
    
    2.96
    %
    
    $
    190,473
    
    
    $
    1,483
    
    
    
    3.11
    %Demand deposits
    
    $
    18,477
    
    
    
    
    
    
    
    
    
    
    $
    18,488Other liabilities
    
    
    7,905
    
    
    
    
    
    
    
    
    
    
    
    717Stockholders equity
    
    
    31,466
    
    
    
    
    
    
    
    
    
    
    
    29,996Total liabilities and capital
    
    $
    249,173
    
    
    
    
    
    
    
    
    
    
    $
    239,674NET INTEREST INCOME /
    
    
    
    
    
    $
    2,064
    
    
    
    3.59
    %
    
    
    
    
    
    $
    2,028
    
    
    
    3.60
    %NET INTEREST MARGIN (4)TAX EQUIVALENT NET INTEREST
INCOME /
    
    
    
    
    
    $
    2,161
    
    
    
    3.75
    %
    
    
    
    
    
    $
    2,114
    
    
    
    3.75
    %NET INTEREST MARGIN (5)
 
 (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. 19




---



##### 



CHANGE IN NET INTEREST INCOME ON A TAX EQUIVALENT BASIS
 Three Months Ended March 31, 2008Compared with 2007Increase (Decrease) (2)Volume
    
    
    Rate
    
    
    Total(In thousands)Interest income:Loans (1)
    
    $
    (4
    )
    
    $
    0
    
    
    $
    (4
    )Investments (1)
    
    
    371
    
    
    
    (68
    )
    
    
    303Federal funds sold and other short-term investments
    
    
    (150
    )
    
    
    (285
    )
    
    
    (435
    )Total Interest Income:
    
    
    217
    
    
    
    (353
    )
    
    
    (136
    )Interest expense:Deposits
    
    
    64
    
    
    
    210
    
    
    
    274Short-term borrowings
    
    
    (28
    )
    
    
    (466
    )
    
    
    (494
    )Long term debt
    
    
    (61
    )
    
    
    11
    
    
    
    (50
    )Total Interest Expense:
    
    
    (25
    )
    
    
    (245
    )
    
    
    (270
    )Net Interest Income:
    
    $
    242
    
    
    $
    (108
    )
    
    $
    134
 
 (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
  Three Months EndedMarch 31,(Dollars in thousands)2008
    
    
    2007Service charges and fees
    
    $
    239
    
    
    $
    205Gain on sale of loans
    
    
    47
    
    
    
    21Bank-owned life insurance income
    
    
    65
    
    
    
    70Investment center
    
    
    38
    
    
    
    182Trust department
    
    
    38
    
    
    
    43Other
    
    
    73
    
    
    
    68Total
    
    $
    500
    
    
    $
    589
   20




---



##### 



Non-Interest Expense
  Three Months EndedMarch 31,2008
    
    
    2007(Dollars in Thousands)Salaries
    
    $
    703
    
    
    $
    771Pensions and other employee benefits
    
    
    245
    
    
    
    231Occupancy expense-net
    
    
    138
    
    
    
    129Equipment
    
    
    115
    
    
    
    121State shares tax
    
    
    85
    
    
    
    82Professional services
    
    
    66
    
    
    
    61Directors fees
    
    
    46
    
    
    
    47Stationery and supplies
    
    
    27
    
    
    
    41Other
    
    
    274
    
    
    
    293Total
    
    $
    1,699
    
    
    $
    1,776
            21




---



##### 



Description of Security
    
    Less than 12 months
    
    
    12 months or more
    
    
    Total(Dollars in thousands)
    
    Fair Value
    
    

Unrealized
Loss
    
    
    Fair Value
    
    
    Unrealized Loss
    
    
    Fair Value
    
    
    Unrealized LossObligations of U.S. Government
Corporations and Agencies:Mortgage backed
    
    $
    2,070
    
    
    $
    8
    
    
    $
    3,232
    
    
    $
    3
    
    
    $
    5,302
    
    
    $
    11Other
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0Obligations of State and Political
Subdivisions
    
    
    321
    
    
    
    3
    
    
    
    0
    
    
    
    0
    
    
    
    321
    
    
    
    3Marketable Equity Securities
    
    
    170
    
    
    
    95
    
    
    
    360
    
    
    
    68
    
    
    
    530
    
    
    
    163Total
    
    $
    2,561
    
    
    $
    106
    
    
    $
    3,592
    
    
    $
    71
    
    
    $
    6,153
    
    
    $
    177
     March
    
    
    December31, 2008
    
    
    31,2007Past due and non-accrual:
    
    (Dollars in Thousands)Days 30  89
    
    $
    1,185
    
    
    $
    460Days 90 plus
    
    
    0
    
    
    
    80Non-accrual
    
    
    152
    
    
    
    77Total
    
    $
    1,337
    
    
    $
    617
  22




---



##### 



March 31,MATURITY AND REPRICING DATA FOR LOANS AND LEASES
    
    2008(Dollars inthousands)(1) Three months or less
    
    $
    2,186(2) Over three months through 12 months
    
    
    14,020(3) Over one year through three years
    
    
    28,465(4) Over three years through five years
    
    
    4,008(5) Over five years through 15 years
    
    
    18,161(6) Over 15 years
    
    
    288All 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
    
    
    17,367(2) Over three months through 12 months
    
    
    16,741(3) Over one year through three years
    
    
    27,001(4) Over three years through five years
    
    
    11,060(5) Over five years through 15 years
    
    
    19,989(6) Over 15 years
    
    
    133Sub-total
    
    
    159,419Add: Non-accrual loans not included above
    
    
    152Less: Unearned income
    
    
    (27
    )Total Loans and Leases
    
    $
    159,544
      
  23




---



##### 



For the Three MonthsEnded March 31,(Dollars in thousands)2008
    
    
    2007Average loans outstanding:
    
    $
    160,707
    
    
    $
    160,770Total loans at end of period
    
    
    159,544
    
    
    
    161,460Balance at beginning of period
    
    $
    1,437
    
    
    $
    1,457Total charge-offs
    
    
    (11
    )
    
    
    (11
    )Total recoveries
    
    
    12
    
    
    
    27Net charge-offs
    
    
    1
    
    
    
    16Provision for loan losses
    
    
    0
    
    
    
    23Balance at end of period
    
    $
    1,438
    
    
    $
    1,496Net charge-offs as a percent of average loans outstanding during period
    
    
    .01
    %
    
    
    .01
    %Allowance for loan losses as a percent of total loans
    
    
    .90
    %
    
    
    .94
    %
  Capital Adequacy
   March 31, 2008
    
    December 31, 2007Minimum
    
    
    
    
    
    MinimumCalculated
    
    Standard
    
    Calculated
    
    StandardRatios
    
    Ratios
    
    Ratios
    
    RatiosRisk Based Ratios:Tier I Capital to risk-weighted assets
    
    
    19.32
    %
    
    
    4.00
    %
    
    
    18.98
    %
    
    
    4.00
    %Total Qualifying Capital to risk-weighted assets
    
    
    20.25
    %
    
    
    8.00
    %
    
    
    19.90
    %
    
    
    8.00
    %
  March 31,
    
    December 31,2008
    
    2007Tier I Capital to average assets
    
    
    12.51
    %
    
    
    12.06
    %
    24




---



##### 



CCFNB BANCORP, INC.
ISSUER PURCHASES OF EQUITY SECURITIES
 NUMBER OF SHARES
    
    NUMBER OF SHARESNUMBER
    
    
    
    
    
    PURCHASED AS PART
    
    THAT MAY YET BEOF SHARES
    
    PRICE PAID
    
    OF PUBLICLY
    
    PURCHASED UNDERPERIOD
    
    PURCHASED
    
    PER SHARE
    
    ANNOUNCED PROGRAM (1)
    
    THE PROGRAM01/01/08  01/31/08
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    16,00002/01/08  02/29/08
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    16,00003/01/08  03/31/08
    
    
    2,000
    
    
    $
    25.75
    
    
    
    2,000
    
    
    
    14,000TOTAL
    
    
    2,000
    
    
    
    
    
    
    
    2,000
 
 (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. 25




---



##### 



26




---



##### 



27




---



##### 



SIGNATURES
  CCFNB BANCORP, INC.
(Registrant)By
    /s/ Lance O. DiehlLance O. DiehlPresident and CEODate: May 12, 2008By
    /s/ Virginia D. KocherVirginia D. KocherTreasurerDate: May 12, 2008 28