UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year-ended December 31, 2009
 or
 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, Pennsylvania
(Address of principal executive offices)
    
    17815
(Zip Code)
 (570) 784-4400
 None
 Common Stock, par value $1.25 per
share
 o þ
 o þ
 þ o
 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 þ




---



##### 



CCFNB BANCORP, INC.
FORM 10-K
 INDEX
 PagePART IItem 1. Business
    
    
    3Item 1A. Risk Factors
    
    
    12Item 1B. Unresolved Staff Comments
    
    
    13Item 2. Properties
    
    
    14Item 3. Legal Proceedings
    
    
    15Item 4. Submission of Matters to a Vote of Security Holders
    
    
    15PART IIItem 5. Market for the Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
    
    
    15Item 6. Selected Financial Data
    
    
    16Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17Item 7A. Quantitative and Qualitative Disclosures about Market Risk
    
    
    31Item 8. Financial Statements and Supplementary Data
    
    
    32Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    
    
    64Item 9A(T)Controls and Procedures
    
    
    64Item 9B. Other Information
    
    
    66PART IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    66Item 11. Executive Compensation
    
    
    66Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
    
    
    66Item 13. Certain Relationships and Related Transactions, and Director Independence
    
    
    66Item 14. Principal Accounting Fees and Services
    
    
    67PART IVItem 15. Exhibits, Financial Statements Schedules
    
    
    67SIGNATURES
    
    
    68INDEX TO EXHIBITS
    
    
    69
 2




---



##### 



PART I
 Item 1.
    
    Business
 General
  
    
    $602 million in total assets;
    
    $330 million in gross loans;
    
    $462 million in deposits; and
    
    $65 million in stockholders equity.
   
    
    economic characteristics,
    
    products and services,
    
    operating processes,
    
    delivery systems,
    
    customer bases, and
    
    regulatory oversight.
     3




---



##### 



Supervision and Regulation
  Intercompany Transactions
  Supervisory Agencies
    Support of the Bank
  4




---



##### 



Liability of Commonly Controlled Banks
  
    
    the default of a commonly controlled FDIC-insured depository institution or
    
    any assistance provided by the FDIC to a commonly controlled FDIC-insured depository
institution in danger of default.
  Depositor Preference Statute
  Allowance For Loan Losses
    
    
    commercial, financial, and agricultural
    
    real estate mortgages,
    
    consumer, and
    
    unallocated.
  
    
    by risk profile, and
    
    by past due status.
  
    
    historical trends,
    
    economic conditions, and
    
    any known deterioration.
  5




---



##### 



Sources of Funds
 General
 Deposits
    Capital Requirements
  
    
    core (Tier 1) capital, which includes common equity, non-cumulative perpetual
preferred stock, a limited amount of cumulative perpetual preferred stock, and minority
interests in equity accounts of consolidated subsidiaries, less goodwill, certain
identifiable intangible assets, and certain other assets; and
    
    supplementary (Tier 2) capital, which includes, among other items, perpetual
preferred stock not meeting the Tier 1 definition, mandatory convertible securities,
subordinated debt and allowances for loan and lease losses, subject to certain
limitations, less certain required deductions.
     6




---



##### 



Brokered Deposits
  Dividend Restrictions
  
    
    the Banks surplus is at least equal to its paid-in capital, and
    
    the payment of the dividend would not reduce the Banks surplus below the required
level.
   Deposit Insurance
  7




---



##### 



TARP Capital Purchase Program
   Interstate Banking and Branching
  8




---



##### 



Control Acquisitions
   Permitted Non-Banking Activities
  Community Reinvestment Act
  Financial Services Modernization
  Privacy
  9




---



##### 



Terrorist Activities
  The USA PATRIOT Act
  Subprime and Predatory Lending
   
    
    An annual percentage rate exceeding 8.00 percentage points above comparable term U.S.
Treasury securities for first-lien mortgages and 10 percent for subordinate-lien
mortgages; and/or
    
    Total points and fees payable by the consumer at or before closing that exceed the
greater of 8.0 percent of the total loan amount or $583. The $583 is adjusted annually
by the annual percentage change in the Consumer Price Index.
  Electronic Funds Transfers
  Sales of Insurance
  10




---



##### 



Corporate Governance
    The Bank
   Marketing Area
    Available Information
 th
 11




---



##### 



Item 1A.
    
    Risk Factors
 Adverse changes in the economic conditions in our market area could materially and negatively
affect our business.
  
    
    customers credit quality may deteriorate;
    
    loan delinquencies may increase;
    
    problem assets and foreclosures may increase;
    
    demand for our products and services may decrease;
    
    competition for low cost or non-interest bearing deposits may increase; and
    
    collateral securing loans may decline in value.
 Competitive pressures from financial services companies and other companies offering banking
services could negatively impact our business.
  Changes in interest rates could reduce our income and cash flows.
  Significant increases in interest rates may affect customer loan demand and payment habits.
  If the Banks loan growth exceeds that of its deposit growth, then the Bank may be required to
obtain higher cost sources of funds.
  If the Banks allowance for loan losses is not adequate to cover actual loan losses, its earnings
may decline.
  12




---



##### 



Adverse changes in the market value of securities and investments that we manage for others may
negatively impact the growth level of the Banks non-interest income.
  The Banks branch locations may be negatively affected by changes in demographics.
  Changes in the regulatory environment may adversely affect the Banks business.
  Training and technology costs, as well as product development and operating costs, may exceed our
expectations and negatively impact our profitability.
  If we fail to maintain an effective system of internal controls, we may not be able to accurately
report our financial results or prevent fraud.
  The loss of one or more of our key personnel may materially and adversely affect our prospects.
  Item 1B.
    
    Unresolved Staff Comments
  13




---



##### 



Item 2. Properties
   ApproximateLocation
    
    Square Footage
    
    Own or Lease
    
    UseRed Rock Road, Benton, PA
    
    
    2,814
    
    
    Own
    
    For SaleMarket Street, Benton, PA
    
    
    4,672
    
    
    Own
    
    Banking Services1919 W. Front Street, Berwick, PA
    
    
    2,240
    
    
    Own
    
    Banking ServicesMarket Street, Berwick, PA
    
    
    
    
    
    Own
    
    Future expansion1 Hospital Drive, Bloomsburg
    
    
    120
    
    
    Lease
    
    ATM Facility17 E. Main Street, Bloomsburg
    
    
    
    
    
    Lease
    
    ATM Facility232 East Street, Bloomsburg
    
    
    11,686
    
    
    Own
    
    Main Office and Bancorp HeadquartersMarket Street, Bloomsburg
    
    
    1,335
    
    
    Lease
    
    Banking ServicesBuckhorn, PA
    
    
    693
    
    
    Lease
    
    Banking Services (In Wal-Mart Supercenter)Buckhorn, PA
    
    
    3,804
    
    
    Own
    
    Banking ServicesCatawissa, PA
    
    
    1,558
    
    
    Own
    
    Banking ServicesCatawissa, PA
    
    
    2,804
    
    
    Own
    
    ResidentialElysburg, PA
    
    
    2,851
    
    
    Own
    
    Banking ServicesMillville, PA
    
    
    2,520
    
    
    Own
    
    Banking ServicesOrangeville, PA
    
    
    2,259
    
    
    Own
    
    Banking Services1199 Lightstreet Road, Scott
Township, PA
    
    
    16,500
    
    
    Own
    
    Banking Services, Financial Planning, IT and Deposit Operations2691 Columbia Blvd, Scott
Township, PA
    
    
    3,680
    
    
    Own
    
    Banking Services992 Central Road, Scott
Township, PA
    
    
    12,624
    
    
    Own
    
    Operations CenterWest Hazleton, PA
    
    
    3,015
    
    
    Own
    
    Banking Services
  14




---



##### 



Item 3.
    
    Legal Proceedings
  Item 4.
    
    Submission of Matters to a Vote of Security Holders
  PART II
 Item 5. Market for the Registrants Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
  2009:
    
    High ($)
    
    Low ($)
    
    Dividends Declared ($)First quarter
    
    19.00
    
    14.00
    
    .24Second quarter
    
    22.50
    
    18.35
    
    .24Third quarter
    
    24.00
    
    20.90
    
    .27Fourth quarter
    
    28.00
    
    23.50
    
    .28
 2008:
    
    High ($)
    
    Low ($)
    
    Dividends Declared ($)First quarter
    
    26.00
    
    24.30
    
    .21Second quarter
    
    25.45
    
    23.70
    
    .21Third quarter
    
    23.80
    
    21.00
    
    .24Fourth quarter
    
    22.00
    
    18.50
    
    .24
   Total
    
    
    Average
    
    
    Total Number of
    
    
    Maximum Number (orNumber of
    
    
    Price Paid
    
    
    Shares (or Units)
    
    
    Approximate Dollar Value)Shares (or
    
    
    per Share
    
    
    Purchased as Part of
    
    
    of Shares (or Units) thatUnits)
    
    
    (or Units)
    
    
    Publicly Announced
    
    
    May Yet Be PurchasedPeriod
    
    Purchased
    
    
    Purchased
    
    
    Plans or Programs (1)
    
    
    Under the Plans or ProgramsMonth #1 (October 1 - October 31, 2009)
    
    
    
    
    
    $
    
    
    
    
    
    
    
    
    187,500Month #2 (November 1 - November 30, 2009)
    
    
    10,000
    
    
    
    26.50
    
    
    
    10,000
    
    
    
    177,500Month #3 (December 1 - December 31, 2009)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    177,500
 
 (1)
    
    This program was announced in 2009. The Board of Directors approved the purchase of
200,000 shares from time to time at prevailing market prices in block trades on the open
market or in privately negotiated transactions, as market conditions warrant. No
expiration date is associated with this program. 15




---



##### 



Item 6. Selected Financial Data
  CCFNB BANCORP, INC.SELECTED CONSOLIDATED FINANCIAL SUMMARY
 For the Year Ending December 31,(In Thousands except per share data)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005INCOME STATEMENT DATA:Total interest income
    
    $
    28,420
    
    
    $
    21,357
    
    
    $
    14,483
    
    
    $
    13,202
    
    
    $
    11,442Total interest expense
    
    
    8,614
    
    
    
    7,504
    
    
    
    6,185
    
    
    
    5,301
    
    
    
    4,131Net interest income
    
    
    19,806
    
    
    
    13,853
    
    
    
    8,298
    
    
    
    7,901
    
    
    
    7,311Provision for possible loan losses
    
    
    1,025
    
    
    
    750
    
    
    
    30
    
    
    
    175
    
    
    
    90Non interest income
    
    
    5,065
    
    
    
    3,043
    
    
    
    2,305
    
    
    
    1,900
    
    
    
    1,713Non interest expenses
    
    
    15,914
    
    
    
    12,172
    
    
    
    7,038
    
    
    
    6,437
    
    
    
    6,077Federal income taxes
    
    
    2,055
    
    
    
    896
    
    
    
    888
    
    
    
    777
    
    
    
    631Net income
    
    $
    5,877
    
    
    $
    3,078
    
    
    $
    2,647
    
    
    $
    2,412
    
    
    $
    2,226PER SHARE DATA:Earnings per share (1)
    
    $
    2.61
    
    
    $
    1.82
    
    
    $
    2.15
    
    
    $
    1.93
    
    
    $
    1.76Cash dividends declared per share
    
    $
    1.03
    
    
    $
    0.90
    
    
    $
    0.82
    
    
    $
    0.78
    
    
    $
    0.74Book value per share
    
    $
    28.95
    
    
    $
    26.94
    
    
    $
    25.79
    
    
    $
    24.36
    
    
    $
    23.06Average annual shares outstanding
    
    
    2,253,087
    
    
    
    1,688,498
    
    
    
    1,233,339
    
    
    
    1,249,844
    
    
    
    1,262,171BALANCE SHEET DATA:Total assets
    
    $
    602,489
    
    
    $
    568,319
    
    
    $
    245,324
    
    
    $
    241,920
    
    
    $
    231,218Total loans
    
    
    330,489
    
    
    
    320,068
    
    
    
    161,460
    
    
    
    160,641
    
    
    
    154,271Total securities
    
    
    223,250
    
    
    
    196,580
    
    
    
    57,686
    
    
    
    53,486
    
    
    
    53,919Total deposits
    
    
    462,288
    
    
    
    434,309
    
    
    
    170,938
    
    
    
    169,285
    
    
    
    164,847FHLB advances-long-term
    
    
    15,128
    
    
    
    9,133
    
    
    
    11,137
    
    
    
    11,297
    
    
    
    11,311Total stockholders equity
    
    
    65,086
    
    
    
    60,775
    
    
    
    31,627
    
    
    
    30,249
    
    
    
    29,012PERFORMANCE RATIOS:Return on average assets
    
    
    1.01
    %
    
    
    0.77
    %
    
    
    1.07
    %
    
    
    1.02
    %
    
    
    0.97
    %Return on average stockholders equity
    
    
    9.25
    %
    
    
    6.91
    %
    
    
    8.54
    %
    
    
    7.97
    %
    
    
    7.73
    %Net interest margin (2)
    
    
    3.80
    %
    
    
    3.90
    %
    
    
    3.74
    %
    
    
    3.74
    %
    
    
    3.65
    %Total non-interest expense as a percentage of
average assets
    
    
    2.73
    %
    
    
    3.06
    %
    
    
    2.83
    %
    
    
    2.72
    %
    
    
    2.64
    %ASSET QUALITY RATIOS:Allowance for possible loan losses as a
percentage of loans, net
    
    
    1.27
    %
    
    
    1.17
    %
    
    
    0.89
    %
    
    
    0.91
    %
    
    
    1.02
    %Allowance for possible loan losses as a
percentage of non-performing loans (3)
    
    
    89.87
    %
    
    
    83.29
    %
    
    
    102.64
    %
    
    
    686.79
    %
    
    
    185.54
    %Non-performing loans as a percentage of total
loans, net (3)
    
    
    1.42
    %
    
    
    1.43
    %
    
    
    0.09
    %
    
    
    0.13
    %
    
    
    0.85
    %Non-performing assets as a percentage of total
assets (3)
    
    
    0.78
    %
    
    
    0.86
    %
    
    
    0.57
    %
    
    
    0.09
    %
    
    
    0.36
    %Net charge-offs as a percentage of average net
loans (4)
    
    
    -0.18
    %
    
    
    -0.05
    %
    
    
    -0.03
    %
    
    
    -0.17
    %
    
    
    0.05
    %LIQUIDITY AND CAPITAL RATIOS:Average equity to average assets
    
    
    10.90
    %
    
    
    11.19
    %
    
    
    12.48
    %
    
    
    12.79
    %
    
    
    12.51
    %Tier 1 capital to risk-weighted assets (5)
    
    
    16.38
    %
    
    
    15.37
    %
    
    
    18.10
    %
    
    
    19.25
    %
    
    
    19.24
    %Leverage ratios (5) (6)
    
    
    9.82
    %
    
    
    9.27
    %
    
    
    12.71
    %
    
    
    12.71
    %
    
    
    12.74
    %Total capital to risk-weighted assets (5)
    
    
    17.62
    %
    
    
    16.48
    %
    
    
    18.93
    %
    
    
    20.29
    %
    
    
    20.32
    %Dividend Payout Ratio
    
    
    39.44
    %
    
    
    51.75
    %
    
    
    38.16
    %
    
    
    40.38
    %
    
    
    41.92
    %
 16




---



##### 



(1)
    
    Based upon average shares and common share equivalents outstanding.(2)
    
    Represents net interest income as a percentage of average total interest-earning assets,
calculated on a tax-equivalent basis.(3)
    
    Non-performing loans are comprised of (i) loans which are on a non-accrual basis, (ii)
accruing loans that are 90 days or more past due, and (iii) restructured loans.
Non-performing assets are comprised of non-performing loans and foreclosed real estate (assets
acquired in foreclosure), if applicable.(4)
    
    Based upon average balances for the respective periods.(5)
    
    Based on the Federal Reserve Banks risk-based capital guidelines, as applicable to the
Corporation. The Bank is subject to similar requirements imposed by the FDIC.(6)
    
    The leverage ratio is defined as the ratio of Tier 1 Capital to average total assets less
intangible assets, if applicable. Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
 CAUTIONARY STATEMENT
  
    
    Our business and financial results are affected by business and economic
conditions, both generally and specifically in the Northcentral Pennsylvania market
in which we operate. In particular, our businesses and financial results may be
impacted by:
    
    Changes in interest rates and valuations in the debt, equity and other financial
markets.
    
    Disruptions in the liquidity and other functioning of financial markets,
including such disruptions in the market for real estate and other assets commonly
securing financial products.
    
    Actions by the Federal Reserve Board and other government agencies, including
those that impact money supply and market interest rates.
    
    Changes in our customers and suppliers performance in general and their
creditworthiness in particular.
    
    Changes in customer preferences and behavior, whether as a result of changing
business and economic conditions or other factors.
    
    Changes resulting from the newly enacted Emergency Economic Stabilization Act of
2008.
    
    A continuation of recent turbulence in significant segments of the United States
and global financial markets, particularly if it worsens, could impact our
performance, both directly by affecting our revenues and the value of our assets and
liabilities and indirectly by affecting our customers and suppliers and the economy
generally.
    
    Our business and financial performance could be impacted as the financial
industry restructures in the current environment by changes in the competitive
landscape.
    
    Given current economic and financial market conditions, our forward-looking
financial statements are subject to the risk that these conditions will be
substantially different than we are currently expecting. These statements are based
on our current expectations that interest rates will remain low throughout most of
2010 with consistent credit spreads and our view that national economic trends
currently point to a continuation of recessionary conditions into 2010 followed by a
subdued recovery.
    
    Legal and regulatory developments could have an impact on our ability to operate
our businesses or our financial condition or results of operations or our
competitive position or reputation. Reputational impacts, in turn, could affect
matters such as business generation and retention, our ability to attract and retain
management, liquidity and funding. These legal and regulatory developments could
include: (a) the unfavorable resolution of legal proceedings
or regulatory and other governmental inquiries; (b) increased litigation risk from
recent regulatory and
 17




---



##### 



other governmental developments; (c) the results of the
regulatory examination process, and regulators future use of supervisory and
enforcement tools; (d) legislative and regulatory reforms, including changes to laws
and regulations involving tax, pension, education and mortgage lending, the protection
of confidential customer information, and other aspects of the financial institution
industry; and (e) changes in accounting policies and principles.
    
    Our business and operating results are affected by our ability to identify and
effectively manage risks inherent in our businesses, including, where appropriate,
through the effective use of third-party insurance and capital management
techniques.
    
    Our ability to anticipate and respond to technological changes can have an impact
on our ability to respond to customer needs and to meet competitive demands.
    
    Our ability to implement our business initiatives and strategies could affect our
financial performance over the next several years.
    
    Competition can have an impact on customer acquisition, growth and retention, as
well as on our credit spreads and product pricing, which can affect market share,
deposits and revenues.
    
    Our business and operating results can also be affected by widespread natural
disasters, terrorist activities or international hostilities, either as a result of
the impact on the economy and capital and other financial markets generally or on us
or on our customers and suppliers.
   RESULTS OF OPERATIONS
 NET INTEREST INCOME
 2009 vs. 2008
     18




---



##### 



2008 vs. 2007
    19




---



##### 



AVERAGE BALANCE SHEET AND RATE ANALYSIS
YEARS ENDED DECEMBER 31,
 2009
    
    
    2008
    
    
    2007Average Balance
    
    
    Interest
    
    
    Average Rate
    
    
    Average Balance
    
    
    Interest
    
    
    Average Rate
    
    
    Average Balance
    
    
    Interest
    
    
    Average Rate(In Thousands)
    
    (1)
    
    
    
    
    
    
    
    
    
    
    (1)
    
    
    
    
    
    
    
    
    
    
    (1)ASSETS:Tax-exempt loans
    
    $
    19,627
    
    
    $
    1,254
    
    
    
    6.39
    %
    
    $
    16,156
    
    
    $
    1,070
    
    
    
    6.62
    %
    
    $
    11,389
    
    
    $
    771
    
    
    
    6.77
    %All other loans
    
    
    307,450
    
    
    
    18,925
    
    
    
    6.16
    %
    
    
    218,915
    
    
    
    14,587
    
    
    
    6.66
    %
    
    
    148,959
    
    
    
    10,585
    
    
    
    7.11
    %Total loans (2)(3)(4)
    
    
    327,077
    
    
    
    20,179
    
    
    
    6.17
    %
    
    
    235,071
    
    
    
    15,657
    
    
    
    6.66
    %
    
    
    160,348
    
    
    
    11,356
    
    
    
    7.08
    %Taxable securities
    
    
    189,202
    
    
    
    8,220
    
    
    
    4.34
    %
    
    
    118,012
    
    
    
    5,633
    
    
    
    4.77
    %
    
    
    54,353
    
    
    
    2,546
    
    
    
    4.68
    %Tax-exempt securitites (3)
    
    
    11,550
    
    
    
    650
    
    
    
    5.63
    %
    
    
    6,765
    
    
    
    385
    
    
    
    5.69
    %
    
    
    4,200
    
    
    
    281
    
    
    
    6.69
    %Total securities
    
    
    200,752
    
    
    
    8,870
    
    
    
    4.42
    %
    
    
    124,777
    
    
    
    6,018
    
    
    
    4.82
    %
    
    
    58,553
    
    
    
    2,827
    
    
    
    4.83
    %Federal funds sold
    
    
    7,639
    
    
    
    10
    
    
    
    0.13
    %
    
    
    6,990
    
    
    
    155
    
    
    
    2.22
    %
    
    
    10,013
    
    
    
    512
    
    
    
    5.11
    %Interest-bearing deposits
    
    
    2,877
    
    
    
    8
    
    
    
    0.28
    %
    
    
    873
    
    
    
    22
    
    
    
    2.52
    %
    
    
    2,754
    
    
    
    145
    
    
    
    5.27
    %Total interest-earning assets
    
    
    538,345
    
    
    
    29,067
    
    
    
    5.40
    %
    
    
    367,711
    
    
    
    21,852
    
    
    
    5.94
    %
    
    
    231,668
    
    
    
    14,840
    
    
    
    6.41
    %Other assets
    
    
    44,460
    
    
    
    
    
    
    
    
    
    
    
    30,117
    
    
    
    
    
    
    
    
    
    
    
    16,808TOTAL ASSETS
    
    $
    582,805
    
    
    
    
    
    
    
    
    
    
    $
    397,828
    
    
    
    
    
    
    
    
    
    
    $
    248,476LIABILITIES:Savings
    
    $
    56,493
    
    
    
    225
    
    
    
    0.40
    %
    
    $
    39,223
    
    
    
    156
    
    
    
    0.40
    %
    
    $
    24,602
    
    
    
    98
    
    
    
    0.40
    %Now deposits
    
    
    68,650
    
    
    
    100
    
    
    
    0.15
    %
    
    
    47,534
    
    
    
    129
    
    
    
    0.27
    %
    
    
    29,321
    
    
    
    91
    
    
    
    0.31
    %Money market deposits
    
    
    43,906
    
    
    
    452
    
    
    
    1.03
    %
    
    
    21,119
    
    
    
    350
    
    
    
    1.66
    %
    
    
    8,894
    
    
    
    59
    
    
    
    0.66
    %Time deposits
    
    
    228,005
    
    
    
    6,701
    
    
    
    2.94
    %
    
    
    154,334
    
    
    
    5,447
    
    
    
    3.53
    %
    
    
    90,375
    
    
    
    3,810
    
    
    
    4.22
    %Total deposits
    
    
    397,054
    
    
    
    7,478
    
    
    
    1.88
    %
    
    
    262,210
    
    
    
    6,082
    
    
    
    2.32
    %
    
    
    153,192
    
    
    
    4,058
    
    
    
    2.65
    %Short-term borrowings
    
    
    48,826
    
    
    
    368
    
    
    
    0.75
    %
    
    
    42,912
    
    
    
    754
    
    
    
    1.76
    %
    
    
    31,582
    
    
    
    1,457
    
    
    
    4.61
    %Long-term borrowings
    
    
    12,492
    
    
    
    640
    
    
    
    5.12
    %
    
    
    9,413
    
    
    
    572
    
    
    
    6.08
    %
    
    
    11,188
    
    
    
    670
    
    
    
    5.99
    %Junior subordinate debentures
    
    
    4,640
    
    
    
    128
    
    
    
    2.76
    %
    
    
    1,605
    
    
    
    96
    
    
    
    5.98
    %
    
    
    
    
    
    
    
    
    
    
    Total borrowings
    
    
    65,958
    
    
    
    1,136
    
    
    
    1.72
    %
    
    
    53,930
    
    
    
    1,422
    
    
    
    2.64
    %
    
    
    42,770
    
    
    
    2,127
    
    
    
    4.97
    %Total interest-bearing liabilities
    
    
    463,012
    
    
    
    8,614
    
    
    
    1.86
    %
    
    
    316,140
    
    
    
    7,504
    
    
    
    2.37
    %
    
    
    195,962
    
    
    
    6,185
    
    
    
    3.16
    %Demand deposits
    
    
    51,908
    
    
    
    
    
    
    
    
    
    
    
    34,403
    
    
    
    
    
    
    
    
    
    
    
    19,611Other liabilities
    
    
    4,359
    
    
    
    
    
    
    
    
    
    
    
    2,761
    
    
    
    
    
    
    
    
    
    
    
    1,900Stockholders equity
    
    
    63,526
    
    
    
    
    
    
    
    
    
    
    
    44,524
    
    
    
    
    
    
    
    
    
    
    
    31,003TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY
    
    $
    582,805
    
    
    
    
    
    
    
    
    
    
    $
    397,828
    
    
    
    
    
    
    
    
    
    
    $
    248,476Interest rate spread (6)
    
    
    
    
    
    
    
    
    
    
    3.54
    %
    
    
    
    
    
    
    
    
    
    
    3.57
    %
    
    
    
    
    
    
    
    
    
    
    3.25
    %Net interest income/margin (5)
    
    
    
    
    
    $
    20,453
    
    
    
    3.80
    %
    
    
    
    
    
    $
    14,348
    
    
    
    3.90
    %
    
    
    
    
    
    $
    8,655
    
    
    
    3.74
    %
 
 (1)
    
    Average volume information was compared using daily averages for interest-earning and
bearing accounts.(2)
    
    Interest on loans includes loan fee income.(3)
    
    Tax exempt interest revenue is shown on a
tax-equivalent basis using a statutory federal income tax rate of 34 percent for 2009, 2008 and
2007.(4)
    
    Nonaccrual loans have been included with loans for the purpose of analyzing net interest
earnings.(5)
    
    Net interest margin is computed by dividing annualized tax-equivalent net interest income by
total interest earning assets.(6)
    
    Interest rate spread represents the difference between the
average rate earned on interest-earning assets and the average rate paid on interest-bearing
liabilities. 20




---



##### 



Reconcilement of Taxable Equivalent Net Interest Income
For the Years Ended December 31,
 (In Thousands)
    
    2009
    
    2008
    
    2007Total interest income
    
    $
    28,420
    
    
    $
    21,357
    
    
    $
    14,483Total interest expense
    
    
    8,614
    
    
    
    7,504
    
    
    
    6,185Net interest income
    
    
    19,806
    
    
    
    13,853
    
    
    
    8,298Tax equivalent adjustment
    
    
    647
    
    
    
    495
    
    
    
    357Net interest income
(fully taxable equivalent)
    
    $
    20,453
    
    
    $
    14,348
    
    
    $
    8,655
 Rate/Volume Analysis
  Year Ended December 31,2009 vs 2008
    
    
    2008 vs 2007Increase (Decrease)
    
    
    Increase (Decrease)Due to
    
    
    Due to(In Thousands)
    
    Volume
    
    
    Rate
    
    
    Net
    
    
    Volume
    
    
    Rate
    
    
    NetInterest income:Loans, tax-exempt
    
    $
    223
    
    
    $
    (39
    )
    
    $
    184
    
    
    $
    316
    
    
    $
    (17
    )
    
    $
    299Loans
    
    
    5,346
    
    
    
    (1,008
    )
    
    
    4,338
    
    
    
    4,614
    
    
    
    (612
    )
    
    
    4,002Taxable investment securities
    
    
    3,133
    
    
    
    (546
    )
    
    
    2,587
    
    
    
    3,040
    
    
    
    47
    
    
    
    3,087Tax-exempt investment securities
    
    
    269
    
    
    
    (4
    )
    
    
    265
    
    
    
    151
    
    
    
    (47
    )
    
    
    104Federal funds sold
    
    
    13
    
    
    
    (158
    )
    
    
    (145
    )
    
    
    (255
    )
    
    
    (102
    )
    
    
    (357
    )Interest bearing deposits
    
    
    19
    
    
    
    (33
    )
    
    
    (14
    )
    
    
    124
    
    
    
    (247
    )
    
    
    (123
    )Total interest-earning assets
    
    
    9,003
    
    
    
    (1,788
    )
    
    
    7,215
    
    
    
    7,990
    
    
    
    (978
    )
    
    
    7,012Interest expense:Savings
    
    
    69
    
    
    
    
    
    
    
    69
    
    
    
    58
    
    
    
    
    
    
    
    58NOW deposits
    
    
    44
    
    
    
    (73
    )
    
    
    (29
    )
    
    
    51
    
    
    
    (13
    )
    
    
    38Money market deposits
    
    
    272
    
    
    
    (170
    )
    
    
    102
    
    
    
    (1,325
    )
    
    
    1,615
    
    
    
    290Time deposits
    
    
    2,278
    
    
    
    (1,024
    )
    
    
    1,254
    
    
    
    2,339
    
    
    
    (702
    )
    
    
    1,637Short-term borrowings
    
    
    93
    
    
    
    (479
    )
    
    
    (386
    )
    
    
    404
    
    
    
    (1,107
    )
    
    
    (703
    )Long-term borrowings, FHLB
    
    
    168
    
    
    
    (100
    )
    
    
    68
    
    
    
    (107
    )
    
    
    10
    
    
    
    (97
    )Junior subordinate debentures
    
    
    84
    
    
    
    (52
    )
    
    
    32
    
    
    
    96
    
    
    
    
    
    
    
    96Total interest-bearing liabilities
    
    
    3,008
    
    
    
    (1,898
    )
    
    
    1,110
    
    
    
    1,516
    
    
    
    (197
    )
    
    
    1,319Change in net interest income
    
    $
    5,995
    
    
    $
    110
    
    
    $
    6,105
    
    
    $
    6,474
    
    
    $
    (781
    )
    
    $
    5,693
 PROVISION FOR LOAN LOSSES
 2009 vs. 2008
  21




---



##### 



2008 vs. 2007
  NON-INTEREST INCOME
 2009 vs. 2008
  For The Year EndedDecember 31, 2009
    
    December 31, 2008
    
    Change(In Thousands)
    
    Amount
    
    % Total
    
    Amount
    
    % Total
    
    Amount
    
    %Service charges and fees
    
    $
    1,704
    
    
    
    33.6
    %
    
    $
    1,281
    
    
    
    42.1
    %
    
    $
    423
    
    
    
    33.0
    %Gain on sale of loans
    
    
    806
    
    
    
    15.9
    
    
    
    339
    
    
    
    11.1
    
    
    
    467
    
    
    
    137.8Earnings on bank-owned life insurance
    
    
    445
    
    
    
    8.8
    
    
    
    366
    
    
    
    12.0
    
    
    
    79
    
    
    
    21.6Brokerage and insurance
    
    
    281
    
    
    
    5.5
    
    
    
    218
    
    
    
    7.2
    
    
    
    63
    
    
    
    28.9Trust
    
    
    655
    
    
    
    12.9
    
    
    
    434
    
    
    
    14.3
    
    
    
    221
    
    
    
    50.9Investment security (losses) gains
    
    
    (385
    )
    
    
    (7.6
    )
    
    
    (431
    )
    
    
    (14.2
    )
    
    
    46
    
    
    
    (10.7
    )Bank card and credit card interchange fees
    
    
    743
    
    
    
    14.7
    
    
    
    417
    
    
    
    13.7
    
    
    
    326
    
    
    
    78.2Other
    
    
    816
    
    
    
    16.2
    
    
    
    419
    
    
    
    13.8
    
    
    
    397
    
    
    
    94.7Total non-interest income
    
    $
    5,065
    
    
    
    100.0
    %
    
    $
    3,043
    
    
    
    100.0
    %
    
    $
    2,022
    
    
    
    66.4
    %
 2008 vs. 2007
  22




---



##### 



For The Year EndedDecember 31,2008
    
    
    December 31,2007
    
    
    Change(In Thousands)
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    %Service charges and fees
    
    $
    1,281
    
    
    
    42.1
    %
    
    $
    942
    
    
    
    40.9
    %
    
    $
    339
    
    
    
    36.0
    %Gain on sale of loans
    
    
    339
    
    
    
    11.1
    
    
    
    182
    
    
    
    7.9
    
    
    
    157
    
    
    
    86.3Earnings on bank-owned life insurance
    
    
    366
    
    
    
    12.0
    
    
    
    285
    
    
    
    12.4
    
    
    
    81
    
    
    
    28.4Brokerage and insurance
    
    
    218
    
    
    
    7.2
    
    
    
    399
    
    
    
    17.3
    
    
    
    (181
    )
    
    
    (45.4
    )Trust
    
    
    434
    
    
    
    14.3
    
    
    
    196
    
    
    
    8.5
    
    
    
    238
    
    
    
    121.4Investment security (losses) gains
    
    
    (431
    )
    
    
    (14.2
    )
    
    
    1
    
    
    
    
    
    
    
    (432
    )
    
    
    Bank card and credit card interchange fees
    
    
    417
    
    
    
    13.7
    
    
    
    173
    
    
    
    7.5
    
    
    
    244
    
    
    
    141.0Other
    
    
    419
    
    
    
    13.8
    
    
    
    127
    
    
    
    5.5
    
    
    
    292
    
    
    
    229.9Total non-interest income
    
    $
    3,043
    
    
    
    100.0
    %
    
    $
    2,305
    
    
    
    100.0
    %
    
    $
    738
    
    
    
    32.0
    %
 NON-INTEREST EXPENSE
 2009 vs. 2008
   For The Years EndedDecember 31,2009
    
    
    December 31,2008
    
    
    Change(In Thousands)
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    %Salaries
    
    $
    6,314
    
    
    
    39.7
    %
    
    $
    4,762
    
    
    
    39.1
    %
    
    $
    1,552
    
    
    
    32.6
    %Employee benefits
    
    
    1,492
    
    
    
    9.4
    
    
    
    2,179
    
    
    
    17.9
    
    
    
    (687
    )
    
    
    (31.5
    )Occupancy
    
    
    1,062
    
    
    
    6.7
    
    
    
    760
    
    
    
    6.2
    
    
    
    302
    
    
    
    39.7Furniture and equipment
    
    
    1,272
    
    
    
    8.0
    
    
    
    927
    
    
    
    7.6
    
    
    
    345
    
    
    
    37.2State shares tax
    
    
    529
    
    
    
    3.3
    
    
    
    418
    
    
    
    3.4
    
    
    
    111
    
    
    
    26.6Professional fees
    
    
    587
    
    
    
    3.7
    
    
    
    570
    
    
    
    4.7
    
    
    
    17
    
    
    
    3.0Directors fees
    
    
    284
    
    
    
    1.8
    
    
    
    244
    
    
    
    2.0
    
    
    
    40
    
    
    
    16.4FDIC assessments
    
    
    920
    
    
    
    5.8
    
    
    
    81
    
    
    
    0.7
    
    
    
    839
    
    
    
    1,035.8Telecommunications
    
    
    347
    
    
    
    2.2
    
    
    
    215
    
    
    
    1.8
    
    
    
    132
    
    
    
    61.4Amortization of core deposit intangible
    
    
    643
    
    
    
    4.0
    
    
    
    280
    
    
    
    2.3
    
    
    
    363
    
    
    
    129.6Automated teller machine and interchange
    
    
    509
    
    
    
    3.2
    
    
    
    286
    
    
    
    2.3
    
    
    
    223
    
    
    
    78.0Other
    
    
    1,955
    
    
    
    12.2
    
    
    
    1,450
    
    
    
    12.0
    
    
    
    505
    
    
    
    34.8Total non-interest expense
    
    $
    15,914
    
    
    
    100.0
    %
    
    $
    12,172
    
    
    
    100.0
    %
    
    $
    3,742
    
    
    
    30.7
    %
 2008 vs. 2007
  23




---



##### 



For The Years EndedDecember 31,2008
    
    
    December 31,2007
    
    
    Change(In Thousands)
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    %Salaries
    
    $
    4,762
    
    
    
    39.1
    %
    
    $
    3,000
    
    
    
    42.6
    %
    
    $
    1,762
    
    
    
    58.7
    %Employee benefits
    
    
    2,179
    
    
    
    17.9
    
    
    
    897
    
    
    
    12.7
    
    
    
    1,282
    
    
    
    142.9Occupancy
    
    
    760
    
    
    
    6.2
    
    
    
    491
    
    
    
    7.0
    
    
    
    269
    
    
    
    54.8Furniture and equipment
    
    
    927
    
    
    
    7.6
    
    
    
    485
    
    
    
    6.9
    
    
    
    442
    
    
    
    91.1State shares tax
    
    
    418
    
    
    
    3.4
    
    
    
    313
    
    
    
    4.4
    
    
    
    105
    
    
    
    33.5Professional fees
    
    
    570
    
    
    
    4.7
    
    
    
    315
    
    
    
    4.5
    
    
    
    255
    
    
    
    81.0Directors fees
    
    
    244
    
    
    
    2.0
    
    
    
    188
    
    
    
    2.7
    
    
    
    56
    
    
    
    29.8FDIC assessments
    
    
    81
    
    
    
    0.7
    
    
    
    20
    
    
    
    0.3
    
    
    
    61
    
    
    
    305.0Telecommunications
    
    
    215
    
    
    
    1.8
    
    
    
    49
    
    
    
    0.7
    
    
    
    166
    
    
    
    338.8Amortization of core deposit intangible
    
    
    280
    
    
    
    2.3
    
    
    
    
    
    
    
    
    
    
    
    280
    
    
    
    Automated teller machine and interchange
    
    
    286
    
    
    
    2.3
    
    
    
    167
    
    
    
    2.4
    
    
    
    119
    
    
    
    71.3Other
    
    
    1,450
    
    
    
    12.0
    
    
    
    1,113
    
    
    
    15.8
    
    
    
    337
    
    
    
    30.3Total non-interest expense
    
    $
    12,172
    
    
    
    100.0
    %
    
    $
    7,038
    
    
    
    100.0
    %
    
    $
    5,134
    
    
    
    72.9
    %
 FINANCIAL CONDITION
        24




---



##### 



INVESTMENTS SECURITIES AVAILABLE-FOR-SALE
 For the Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007Federal Agency Obligations
    
    $
    68,339
    
    
    $
    64,080
    
    
    $
    27,547Mortgage-backed Securities
    
    
    138,856
    
    
    
    118,046
    
    
    
    23,782Obligations of State amd Political Subdivisions
    
    
    11,374
    
    
    
    9,994
    
    
    
    4,045Marketable Equity Securities
    
    
    1,697
    
    
    
    2,293
    
    
    
    1,037Total
    
    $
    220,266
    
    
    $
    194,413
    
    
    $
    56,411
  After One Year
    
    
    After Five YearWithin
    
    
    But Within
    
    
    But Within
    
    
    AfterOne Year
    
    
    Five Years
    
    
    Ten Years
    
    
    Ten Years
    
    
    Total(In Thousands)
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    Yield
    
    
    Amount
    
    
    YieldFederal Agency Obligations
    
    $
    1,007
    
    
    
    3.92
    %
    
    $
    55,004
    
    
    
    2.86
    %
    
    $
    26,903
    
    
    
    4.65
    %
    
    $
    120,171
    
    
    
    4.44
    %
    
    $
    203,085
    
    
    
    4.03
    %Obligations of State and Political Subdivisions
    
    
    471
    
    
    
    3.06
    %
    
    
    3,257
    
    
    
    5.25
    %
    
    
    2,839
    
    
    
    6.30
    %
    
    
    4,698
    
    
    
    6.21
    %
    
    
    11,265
    
    
    
    5.82
    %$
    1,478
    
    
    
    
    
    
    $
    58,261
    
    
    
    
    
    
    $
    29,742
    
    
    
    
    
    
    $
    124,869
    
    
    
    
    
    
    
    214,350Marketable Equity Securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,093Total Invesment Securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    216,443
   LOANS
   For the Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Commercial, financial and agricultural
    
    $
    37,642
    
    
    $
    27,165
    
    
    $
    8,074
    
    
    $
    9,574
    
    
    $
    12,097Tax-exempt
    
    
    18,055
    
    
    
    16,762
    
    
    
    13,108
    
    
    
    9,621
    
    
    
    9,019Real estate
    
    
    253,463
    
    
    
    262,539
    
    
    
    132,453
    
    
    
    135,009
    
    
    
    127,170Real estate construction
    
    
    13,526
    
    
    
    5,307
    
    
    
    3,698
    
    
    
    2,231
    
    
    
    1,548Installment loans to individuals
    
    
    7,725
    
    
    
    8,202
    
    
    
    4,059
    
    
    
    4,118
    
    
    
    4,348Add (deduct): Unearned discount
    
    
    (15
    )
    
    
    (24
    )
    
    
    (23
    )
    
    
    (19
    )
    
    
    (30
    )Unamortized loan costs, net of fees
    
    
    93
    
    
    
    117
    
    
    
    91
    
    
    
    107
    
    
    
    119Gross loans
    
    $
    330,489
    
    
    $
    320,068
    
    
    $
    161,460
    
    
    $
    160,641
    
    
    $
    154,271
 25




---



##### 



For the Years Ended December 31,2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Commercial, financial and agricultural
    
    
    11.4
    %
    
    
    8.5
    %
    
    
    5.0
    %
    
    
    6.0
    %
    
    
    7.8
    %Tax-exempt
    
    
    5.5
    
    
    
    5.2
    
    
    
    8.1
    
    
    
    6.0
    
    
    
    5.8Real estate
    
    
    76.7
    
    
    
    82.1
    
    
    
    82.1
    
    
    
    84.1
    
    
    
    82.5Real estate construction
    
    
    4.1
    
    
    
    1.7
    
    
    
    2.3
    
    
    
    1.4
    
    
    
    1.0Installment loans to individuals
    
    
    2.3
    
    
    
    2.5
    
    
    
    2.5
    
    
    
    2.5
    
    
    
    2.9Gross loans
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
  One YearIn One Year
    
    
    Through
    
    
    Over(In Thousands)
    
    or Less
    
    
    Five Years
    
    
    Five Years
    
    
    TotalCommercial, Tax exempt, Real estate and
Personal loans
    
    $
    9,666
    
    
    $
    36,614
    
    
    $
    270,683
    
    
    $
    316,963Real estate construction
    
    
    13,526
    
    
    
    
    
    
    
    
    
    
    
    13,526$
    23,192
    
    
    $
    36,614
    
    
    $
    270,683
    
    
    $
    330,489Amounts of Such Loans with:Predetermined Fixed Rates
    
    $
    5,900
    
    
    $
    26,496
    
    
    $
    82,004
    
    
    $
    114,400Floating or Adjustable Rates
    
    
    17,292
    
    
    
    10,118
    
    
    
    188,679
    
    
    
    216,089$
    23,192
    
    
    $
    36,614
    
    
    $
    270,683
    
    
    $
    330,489
 ALLOWANCE FOR LOAN LOSSES
   For the Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Commercial, financial, and agricultural
    
    $
    567
    
    
    $
    402
    
    
    $
    104
    
    
    $
    101
    
    
    $
    208Real estate mortgages
    
    
    3,132
    
    
    
    2,461
    
    
    
    700
    
    
    
    659
    
    
    
    694Installment loans to indiviuals
    
    
    149
    
    
    
    158
    
    
    
    28
    
    
    
    27
    
    
    
    32Unallocated
    
    
    362
    
    
    
    737
    
    
    
    605
    
    
    
    669
    
    
    
    619$
    4,210
    
    
    $
    3,758
    
    
    $
    1,437
    
    
    $
    1,456
    
    
    $
    1,553
 26




---



##### 



For the Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Average Loans Outstanding during
the period
    
    $
    327,077
    
    
    $
    235,071
    
    
    $
    160,348
    
    
    $
    158,554
    
    
    $
    150,065Balance, beginning of year
    
    $
    3,758
    
    
    $
    1,437
    
    
    $
    1,456
    
    
    $
    1,553
    
    
    $
    1,392Provision charged to operations
    
    
    1,025
    
    
    
    750
    
    
    
    30
    
    
    
    175
    
    
    
    90Allowance acquired
    
    
    
    
    
    
    1,683
    
    
    
    
    
    
    
    
    
    
    
    Loans charged off:Commercial, financial, and agricultural
    
    
    (116
    )
    
    
    
    
    
    
    
    
    
    
    (185
    )
    
    
    Real estate mortgages
    
    
    (407
    )
    
    
    (42
    )
    
    
    (29
    )
    
    
    (65
    )
    
    
    Installment loans to indiviuals
    
    
    (76
    )
    
    
    (106
    )
    
    
    (56
    )
    
    
    (50
    )
    
    
    (54
    )Recoveries :Commercial, financial, and agricultural
    
    
    1
    
    
    
    4
    
    
    
    
    
    
    
    8
    
    
    
    79Real estate mortgages
    
    
    10
    
    
    
    2
    
    
    
    1
    
    
    
    
    
    
    
    Installment loans to indiviuals
    
    
    15
    
    
    
    30
    
    
    
    35
    
    
    
    20
    
    
    
    46Balance, end of year
    
    $
    4,210
    
    
    $
    3,758
    
    
    $
    1,437
    
    
    $
    1,456
    
    
    $
    1,553Net charge-offs to Average loans
outstanding during the period
    
    
    -0.18
    %
    
    
    -0.05
    %
    
    
    -0.03
    %
    
    
    -0.17
    %
    
    
    0.05
    %
 NON-PERFORMING LOANS
   For the Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Commercial, financial and agriculturalDays 30-89
    
    $
    14
    
    
    $
    61
    
    
    $
    168
    
    
    $
    
    
    
    $
    12Days 90 plus
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Non-accrual
    
    
    145
    
    
    
    581
    
    
    
    
    
    
    
    
    
    
    
    189Real estateDays 30-89
    
    
    1,632
    
    
    
    1,528
    
    
    
    259
    
    
    
    598
    
    
    
    1,152Days 90 plus
    
    
    
    
    
    
    
    
    
    
    70
    
    
    
    67
    
    
    
    128Non-accrual
    
    
    4,216
    
    
    
    3,780
    
    
    
    77
    
    
    
    91
    
    
    
    518Installment loans to individualsDays 30-89
    
    
    49
    
    
    
    9
    
    
    
    33
    
    
    
    40
    
    
    
    65Days 90 plus
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    
    
    
    
    2Non-accrual
    
    
    
    
    
    
    92
    
    
    
    
    
    
    
    
    
    
    
    $
    6,056
    
    
    $
    6,051
    
    
    $
    617
    
    
    $
    796
    
    
    $
    2,066Days 30-89
    
    $
    1,695
    
    
    $
    1,598
    
    
    $
    460
    
    
    $
    638
    
    
    $
    1,229Days 90 plus
    
    
    
    
    
    
    
    
    
    
    80
    
    
    
    67
    
    
    
    130Non-accrual
    
    
    4,361
    
    
    
    4,453
    
    
    
    77
    
    
    
    91
    
    
    
    707$
    6,056
    
    
    $
    6,051
    
    
    $
    617
    
    
    $
    796
    
    
    $
    2,066Restructured loans still accruing
    
    $
    323
    
    
    $
    58
    
    
    $
    1,018
    
    
    $
    539
    
    
    $
    Other real estate owned
    
    $
    29
    
    
    $
    373
    
    
    $
    
    
    
    $
    14
    
    
    $
    Interest income that would have been
recorded under original terms
    
    $
    285
    
    
    $
    320
    
    
    $
    10
    
    
    $
    98
    
    
    $
    9Interest income recorded during the year
    
    $
    241
    
    
    $
    116
    
    
    $
    4
    
    
    $
    90
    
    
    $
    28
 27




---



##### 



DEPOSITS
 .
 .
  2009

    
    2008
    

    2007Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average(In Thousands)
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    Rate
    
    
    Balance
    
    
    RateNon-interest bearing
    
    $
    51,908
    
    
    
    
    %
    
    $
    34,403
    
    
    
    
    %
    
    $
    19,611
    
    
    
    
    %Savings
    
    
    56,493
    
    
    
    0.40
    
    
    
    39,223
    
    
    
    0.40
    
    
    
    24,602
    
    
    
    0.40Now deposits
    
    
    68,650
    
    
    
    0.15
    
    
    
    47,534
    
    
    
    0.27
    
    
    
    29,321
    
    
    
    0.31Money market deposits
    
    
    43,906
    
    
    
    1.03
    
    
    
    21,119
    
    
    
    1.66
    
    
    
    8,894
    
    
    
    0.66Time deposits
    
    
    228,005
    
    
    
    2.94
    
    
    
    154,334
    
    
    
    3.53
    
    
    
    90,375
    
    
    
    4.22Total deposits
    
    $
    448,962
    
    
    
    1.67
    %
    
    $
    296,613
    
    
    
    2.05
    %
    
    $
    172,803
    
    
    
    2.35
    %
  For the Years Ended(In Thousands)
    
    2009
    
    
    2008
    
    
    2007Three months or less
    
    $
    8,346
    
    
    $
    9,353
    
    
    $
    8,932Three months to six months
    
    
    8,666
    
    
    
    9,259
    
    
    
    7,662Six months to twelve months
    
    
    20,805
    
    
    
    24,095
    
    
    
    5,799Over twelve months
    
    
    33,903
    
    
    
    15,672
    
    
    
    8,248Total
    
    $
    71,720
    
    
    $
    58,379
    
    
    $
    30,641As a percentage of total average
time deposits
    
    
    31.5
    %
    
    
    37.8
    %
    
    
    33.9
    %
 BORROWED FUNDS
  28




---



##### 



December 31, 2009
    
    
    December 31, 2008
    
    
    December 31, 2007(In Thousands)
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    % Total
    
    
    Amount
    
    
    % TotalShort-term borrowings:Securities sold under agreement to repurchase
    
    $
    47,873
    
    
    
    72.6
    %
    
    $
    41,573
    
    
    
    77.1
    %
    
    $
    31,206
    
    
    
    72.9
    %Other short-term borrowings, FHL B
    
    
    352
    
    
    
    0.5
    
    
    
    849
    
    
    
    1.6
    
    
    
    
    
    
    
    U .S. Treasury tax and loan notes
    
    
    601
    
    
    
    0.9
    
    
    
    490
    
    
    
    0.9
    
    
    
    376
    
    
    
    0.9Total short-term borrowings
    
    
    48,826
    
    
    
    74.0
    %
    
    
    42,912
    
    
    
    79.6
    %
    
    
    31,582
    
    
    
    73.8
    %Long -term borrowing s, FH LB
    
    
    12,492
    
    
    
    19.0
    
    
    
    9,413
    
    
    
    17.4
    
    
    
    11,188
    
    
    
    26.2Junior subordinate debentures
    
    
    4,640
    
    
    
    7.0
    
    
    
    1,605
    
    
    
    3.0
    
    
    
    
    
    
    
    Total borrowed funds
    
    $
    65,958
    
    
    
    100.0
    %
    
    $
    53,930
    
    
    
    100.0
    %
    
    $
    42,770
    
    
    
    100.0
    %
 CAPITAL RESOURCES
    2009
    
    
    2008(In Thousands)
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTotal Capital
(to Risk-weighted Assets)Actual
    
    $
    60,322
    
    
    
    17.6
    %
    
    $
    55,851
    
    
    
    16.5
    %For Capital Adequacy Purposes
    
    
    27,394
    
    
    
    8.0
    
    
    
    27,112
    
    
    
    8.0To Be Well-Capitalized
    
    
    34,243
    
    
    
    10.0
    
    
    
    33,890
    
    
    
    10.0Tier I Capital
(to Risk-weighted Assets)Actual
    
    $
    56,102
    
    
    
    16.4
    %
    
    $
    52,083
    
    
    
    15.4
    %For Capital Adequacy Purposes
    
    
    13,697
    
    
    
    4.0
    
    
    
    13,556
    
    
    
    4.0To Be Well-Capitalized
    
    
    20,546
    
    
    
    6.0
    
    
    
    20,334
    
    
    
    6.0Tier I Capital
(to Average Assets)Actual
    
    $
    56,102
    
    
    
    9.8
    %
    
    $
    52,083
    
    
    
    9.3
    %For Capital Adequacy Purposes
    
    
    22,861
    
    
    
    4.0
    
    
    
    22,476
    
    
    
    4.0To Be Well-Capitalized
    
    
    28,577
    
    
    
    5.0
    
    
    
    28,095
    
    
    
    5.0
   29




---



##### 



LIQUIDITY
   INTEREST RATE RISK MANAGEMENT
     STATEMENT OF INTEREST SENSITIVITY GAP
December 31, 2009
 > 90 Days90 Days
    
    
    But
    
    
    1 to 5
    
    
    5 to 10
    
    
    > 10(In Thousands)
    
    Or Less
    
    
    < 1 Year
    
    
    Years
    
    
    Years
    
    
    Years
    
    
    TotalInterest-bearing deposits at banks
    
    $
    708
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    708Investment securities (1)
    
    
    16,257
    
    
    
    37,383
    
    
    
    134,619
    
    
    
    23,247
    
    
    
    11,744
    
    
    
    223,250Loans (1)
    
    
    49,928
    
    
    
    54,917
    
    
    
    164,622
    
    
    
    38,707
    
    
    
    22,315
    
    
    
    330,489Rate Sensitive Assets
    
    
    66,893
    
    
    
    92,300
    
    
    
    299,241
    
    
    
    61,954
    
    
    
    34,059
    
    
    
    554,447Deposits:Interest-bearing demand deposits (2)
    
    
    
    
    
    
    
    
    
    
    57,117
    
    
    
    14,279
    
    
    
    
    
    
    
    71,396Savings (2)
    
    
    9,487
    
    
    
    16,989
    
    
    
    63,447
    
    
    
    11,614
    
    
    
    
    
    
    
    101,537Time
    
    
    36,237
    
    
    
    95,069
    
    
    
    101,892
    
    
    
    398
    
    
    
    25
    
    
    
    233,621Borrowed funds
    
    
    49,622
    
    
    
    1,353
    
    
    
    1,022
    
    
    
    
    
    
    
    
    
    
    
    51,997Long-term debt
    
    
    5,000
    
    
    
    4,005
    
    
    
    6,022
    
    
    
    36
    
    
    
    65
    
    
    
    15,128Junior Subordinated Debentures
    
    
    4,640
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,640Rate Sensitive Liabilities
    
    
    104,986
    
    
    
    117,416
    
    
    
    229,500
    
    
    
    26,327
    
    
    
    90
    
    
    
    478,319Interest Sensitivity Gap
    
    $
    (38,093
    )
    
    $
    (25,116
    )
    
    $
    69,741
    
    
    $
    35,627
    
    
    $
    33,969
    
    
    $
    76,128Cumulative Gap
    
    $
    (38,093
    )
    
    $
    (63,209
    )
    
    $
    6,532
    
    
    $
    42,159
    
    
    $
    76,128
    
    
    $
    
 30




---



##### 



(1)
    
    Investments and loans are included at the earlier of repricing or maturity and adjusted
for the effects of prepayments.(2)
    
    Interest bearing demand and savings accounts are included based on historical experience and
managements judgment about the behavior of these deposits in changing interest rate environments.     Item 7A.
    
    Quantitative and Qualitative Disclosures about Market Risk
  Item 8.
    
    Financial Statements and Supplementary Data
 31




---



##### 



CCFNB Bancorp, Inc.
Consolidated Balance Sheets
 December 31,(In Thousands)
    
    2009
    
    
    2008ASSETSCash and due from banks
    
    $
    10,751
    
    
    $
    10,173Interest-bearing deposits in other banks
    
    
    116
    
    
    
    149Federal funds sold
    
    
    592
    
    
    
    5,163Total cash and cash equivalents
    
    
    11,459
    
    
    
    15,485Investment securities, available for sale, at fair value
    
    
    220,266
    
    
    
    194,413Restricted securities, at cost
    
    
    2,984
    
    
    
    2,167Loans,net of unearned income
    
    
    330,489
    
    
    
    320,068Less: Allowance for loan losses
    
    
    4,210
    
    
    
    3,758Loans, net
    
    
    326,279
    
    
    
    316,310Premises and equipment, net
    
    
    12,583
    
    
    
    12,609Accrued interest receivable
    
    
    2,006
    
    
    
    2,388Cash surrender value of bank-owned life insurance
    
    
    11,440
    
    
    
    10,943Investment in limited partnerships
    
    
    687
    
    
    
    845Intangible Assets:Core deposit
    
    
    2,768
    
    
    
    3,411Goodwill
    
    
    7,937
    
    
    
    7,937Prepaid FDIC assessment
    
    
    2,037
    
    
    
    Other assets
    
    
    2,043
    
    
    
    1,811TOTAL ASSETS
    
    $
    602,489
    
    
    $
    568,319LIABILITIESInterest-bearing deposits
    
    $
    406,554
    
    
    $
    381,849Noninterest-bearing deposits
    
    
    55,734
    
    
    
    52,460Total deposits
    
    
    462,288
    
    
    
    434,309Short-term borrowings
    
    
    51,997
    
    
    
    55,462Long-term borrowings
    
    
    15,128
    
    
    
    9,133Junior subordinate debentures
    
    
    4,640
    
    
    
    4,640Accrued interest payable
    
    
    859
    
    
    
    1,075Other liabilities
    
    
    2,491
    
    
    
    2,925TOTAL LIABILITIES
    
    
    537,403
    
    
    
    507,544STOCKHOLDERS EQUITYCommon stock, par value $1.25 per share; authorized
5,000,000 shares; issued 2,270,850 shares
in 2009 and 2,253,080 shares in 2008
    
    
    2,838
    
    
    
    2,816Surplus
    
    
    27,539
    
    
    
    27,173Retained earnings
    
    
    32,723
    
    
    
    29,164Accumulated other comprehensive income
    
    
    2,523
    
    
    
    1,622Treasury stock, at cost; 22,500 shares in 2009 and 0 shares
in 2008
    
    
    (537
    )
    
    
    TOTAL STOCKHOLDERS EQUITY
    
    
    65,086
    
    
    
    60,775TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    602,489
    
    
    $
    568,319
  32




---



##### 



CCFNB Bancorp, Inc.
Consolidated Statements of Income
 For the Years Ended December 31,(In Thousands, Except Per Share Data)
    


    2009
    
    
    2008
    
    
    2007INTEREST AND DIVIDEND INCOMEInterest and fees on loans:Taxable
    
    $
    18,925
    
    
    $
    14,586
    
    
    $
    10,585Tax-exempt
    
    
    828
    
    
    
    706
    
    
    
    509Interest and dividends on investment securities:Taxable
    
    
    8,162
    
    
    
    5,521
    
    
    
    2,423Tax-exempt
    
    
    429
    
    
    
    254
    
    
    
    186Dividend and other interest income
    
    
    58
    
    
    
    112
    
    
    
    123Federal funds sold
    
    
    10
    
    
    
    155
    
    
    
    512Deposits in other banks
    
    
    8
    
    
    
    23
    
    
    
    145TOTAL INTEREST AND DIVIDEND INCOME
    
    
    28,420
    
    
    
    21,357
    
    
    
    14,483INTEREST EXPENSEDeposits
    
    
    7,478
    
    
    
    6,083
    
    
    
    4,058Short-term borrowings
    
    
    368
    
    
    
    753
    
    
    
    1,457Long-term borrowings
    
    
    640
    
    
    
    572
    
    
    
    670Junior subordinate debentures
    
    
    128
    
    
    
    96
    
    
    
    TOTAL INTEREST EXPENSE
    
    
    8,614
    
    
    
    7,504
    
    
    
    6,185NET INTEREST INCOME
    
    
    19,806
    
    
    
    13,853
    
    
    
    8,298PROVISION FOR LOAN LOSSES
    
    
    1,025
    
    
    
    750
    
    
    
    30NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
    
    
    18,781
    
    
    
    13,103
    
    
    
    8,268NON-INTEREST INCOMEService charges and fees
    
    
    1,704
    
    
    
    1,281
    
    
    
    942Gain on sale of loans
    
    
    806
    
    
    
    339
    
    
    
    182Earnings on bank-owned life insurance
    
    
    445
    
    
    
    366
    
    
    
    285Brokerage
    
    
    281
    
    
    
    218
    
    
    
    399Trust
    
    
    655
    
    
    
    434
    
    
    
    196Investment security (losses) gains
    
    
    (385
    )
    
    
    (431
    )
    
    
    1Bank card and credit card interchange fees
    
    
    743
    
    
    
    417
    
    
    
    173Other
    
    
    816
    
    
    
    419
    
    
    
    127TOTAL NON-INTEREST INCOME
    
    
    5,065
    
    
    
    3,043
    
    
    
    2,305NON-INTEREST EXPENSESalaries
    
    
    6,314
    
    
    
    4,762
    
    
    
    3,000Employee benefits
    
    
    1,492
    
    
    
    2,179
    
    
    
    897Occupancy
    
    
    1,062
    
    
    
    760
    
    
    
    491Furniture and Equipment
    
    
    1,272
    
    
    
    927
    
    
    
    485State shares tax
    
    
    529
    
    
    
    418
    
    
    
    313Professional fees
    
    
    587
    
    
    
    570
    
    
    
    315Directors fees
    
    
    284
    
    
    
    244
    
    
    
    188FDIC assessments
    
    
    920
    
    
    
    81
    
    
    
    20Telecommunications
    
    
    347
    
    
    
    215
    
    
    
    49Amortization of core deposit intangible
    
    
    643
    
    
    
    280
    
    
    
    Automated teller machine and interchange
    
    
    509
    
    
    
    286
    
    
    
    167Other
    
    
    1,955
    
    
    
    1,450
    
    
    
    1,113TOTAL NON-INTEREST EXPENSE
    
    
    15,914
    
    
    
    12,172
    
    
    
    7,038INCOME BEFORE INCOME TAX PROVISION
    
    
    7,932
    
    
    
    3,974
    
    
    
    3,535INCOME TAX PROVISION
    
    
    2,055
    
    
    
    896
    
    
    
    888NET INCOME
    
    $
    5,877
    
    
    $
    3,078
    
    
    $
    2,647EARNINGS PER SHARE
    
    $
    2.61
    
    
    $
    1.82
    
    
    $
    2.15CASH DIVIDENDS PER SHARE
    
    $
    1.03
    
    
    $
    0.90
    
    
    $
    0.82WEIGHTED AVERAGE SHARES OUTSTANDING
    
    
    2,253,087
    
    
    
    1,688,498
    
    
    
    1,233,339
  33




---



##### 



CCFNB Bancorp, Inc.
Consolidated Statements of Changes in Stockholders Equity
 AccumulatedCommon
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    TotalStock
    
    
    
    
    
    
    Retained
    
    
    Comprehensive
    
    
    Treasury
    
    
    Stockholders(In Thousands Except Per Share Data)
    
    Shares
    
    
    Amount
    
    
    Surplus
    
    
    Earnngs
    
    
    Income (loss)
    
    
    Stock
    
    
    EquityBalance, December 31, 2006
    
    
    1,241,664
    
    
    $
    1,552
    
    
    $
    2,673
    
    
    $
    26,054
    
    
    $
    (30
    )
    
    $
    
    
    
    $
    30,249Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,647
    
    
    
    
    
    
    
    
    
    
    
    2,647Change in net unrealized gain on
investment securities available-for-sale,
net of reclassification adjustment and
tax effects.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    174
    
    
    
    
    
    
    
    174Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,821Cumulative effect of change in accounting
for deferred compensation endorsement
split-dollar life insurance arrangements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    
    
    
    
    
    
    
    
    (12
    )Common stock issuance under dividend
reinvestment and stock purchase plans
    
    
    8,872
    
    
    
    11
    
    
    
    225
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    236Recognition of employee stock purchase
plan expense
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1Purchase of treasury stock (24,000 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (658
    )
    
    
    (658
    )Retirement of treasury stock
    
    
    (24,000
    )
    
    
    (30
    )
    
    
    (628
    )
    
    
    
    
    
    
    
    
    
    
    658
    
    
    
    Cash dividends, ($0.82 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,010
    )
    
    
    
    
    
    
    
    
    
    
    (1,010
    )Balance, December 31, 2007
    
    
    1,226,536
    
    
    
    1,533
    
    
    
    2,271
    
    
    
    27,679
    
    
    
    144
    
    
    
    
    
    
    
    31,627Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,078
    
    
    
    
    
    
    
    
    
    
    
    3,078Change in net unrealized gain on
investment securities available-for-sale,
net of reclassification adjustment and
tax effects.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,478
    
    
    
    
    
    
    
    1,478Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,556Par value of new shares issued to acquire
Columbia Financial
    
    
    1,030,286
    
    
    
    1,288
    
    
    
    25,026
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    26,314Common stock issuance under dividend
reinvestment and stock purchase plans
    
    
    12,258
    
    
    
    15
    
    
    
    252
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    267Recognition of employee stock purchase
plan expense
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2Purchase of treasury stock (16,000 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (398
    )
    
    
    (398
    )Retirement of treasury stock
    
    
    (16,000
    )
    
    
    (20
    )
    
    
    (378
    )
    
    
    
    
    
    
    
    
    
    
    398
    
    
    
    Cash dividends, ($0.90 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,593
    )
    
    
    
    
    
    
    
    
    
    
    (1,593
    )Balance, December 31, 2008
    
    
    2,253,080
    
    
    
    2,816
    
    
    
    27,173
    
    
    
    29,164
    
    
    
    1,622
    
    
    
    
    
    
    
    60,775Comprehensive Income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,877
    
    
    
    
    
    
    
    
    
    
    
    5,877Change in net unrealized gain on
investment securities available-for-sale,
net of reclassification adjustment and
tax effects.
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    901
    
    
    
    
    
    
    
    901Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,778Common stock issuance under dividend
reinvestment and stock purchase plans
    
    
    17,770
    
    
    
    22
    
    
    
    359
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    381Recognition of employee stock purchase
plan expense
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7Purchase of treasury stock (22,500 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (537
    )
    
    
    (537
    )Cash dividends, ($1.03 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,318
    )
    
    
    
    
    
    
    
    
    
    
    (2,318
    )Balance, December 31, 2009
    
    
    2,270,850
    
    
    $
    2,838
    
    
    $
    27,539
    
    
    $
    32,723
    
    
    $
    2,523
    
    
    $
    (537
    )
    
    $
    65,086
  34




---



##### 



CCFNB Bancorp, Inc.
Consolidated Statements of Cash Flows
 Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007OPERATING ACTIVITIESNet Income
    
    $
    5,877
    
    
    $
    3,078
    
    
    $
    2,647Adjustments to reconcile net income to net cashprovided by operating activities:Provision for loan losses
    
    
    1,025
    
    
    
    750
    
    
    
    30Depreciation and amortization
    
    
    1,023
    
    
    
    693
    
    
    
    409Loss (gain) on sale of investment securities
    
    
    316
    
    
    
    (6
    )
    
    
    Impairment loss on securites
    
    
    69
    
    
    
    437
    
    
    
    Amortization and accretion on investment securities
    
    
    606
    
    
    
    350
    
    
    
    43(Gain) loss on sale of premises and equipment
    
    
    (117
    )
    
    
    29
    
    
    
    Loss on sale of other real estate owned
    
    
    94
    
    
    
    
    
    
    
    Deferred income taxes (benefit)
    
    
    35
    
    
    
    (259
    )
    
    
    (25
    )Gain on sale of loans
    
    
    (806
    )
    
    
    (339
    )
    
    
    (182
    )Proceeds from sale of mortgage loans
    
    
    35,263
    
    
    
    17,407
    
    
    
    9,979Originations of mortgage loans held for resale
    
    
    (33,847
    )
    
    
    (16,477
    )
    
    
    (10,215
    )Amortization of intangibles and invesment in limited partnerships
    
    
    801
    
    
    
    353
    
    
    
    Decrease (increase) in accrued interest receivable
    
    
    382
    
    
    
    228
    
    
    
    (88
    )Increases in cash surrender value of bank-owned life insurance
    
    
    (497
    )
    
    
    (404
    )
    
    
    (309
    )(Decrease) increase in accrued interest payable
    
    
    (216
    )
    
    
    (164
    )
    
    
    80Increase in prepaid FDIC assessment
    
    
    (2,037
    )
    
    
    
    
    
    
    Other, net
    
    
    (1,501
    )
    
    
    (211
    )
    
    
    115Net cash provided by operating activities
    
    
    6,470
    
    
    
    5,465
    
    
    
    2,484INVESTING ACTIVITIESInvestment securities available for sale:Purchases
    
    
    (117,943
    )
    
    
    (49,809
    )
    
    
    (39,718
    )Proceeds from sales, maturities and redemptions
    
    
    92,463
    
    
    
    50,001
    
    
    
    35,783Proceeds from redemption of restricted securities
    
    
    
    
    
    
    1,806
    
    
    
    16Purchase of restricted securities
    
    
    (817
    )
    
    
    (1,176
    )
    
    
    (62
    )Net (increase) decrease in loans
    
    
    (12,350
    )
    
    
    2,723
    
    
    
    (449
    )Proceeds from sale of premises and equipment
    
    
    1,294
    
    
    
    786
    
    
    
    Proceeds from sale of other real estate owned
    
    
    996
    
    
    
    
    
    
    
    Acquisition of bank cash
    
    
    
    
    
    
    5,803
    
    
    
    Acquisition of premises and equipment
    
    
    (2,174
    )
    
    
    (2,534
    )
    
    
    (448
    )Net cash (used for) provided by investing activities
    
    
    (38,531
    )
    
    
    7,600
    
    
    
    (4,878
    )FINANCING ACTIVITIESNet increase (decrease) in deposits
    
    
    27,979
    
    
    
    (1,321
    )
    
    
    1,654Net (decrease) increase in short-term borrowings
    
    
    (3,465
    )
    
    
    (5,932
    )
    
    
    201Proceeds from long-term borrowings
    
    
    6,000
    
    
    
    
    
    
    
    Repayment of long-term borrowings
    
    
    (5
    )
    
    
    (2,004
    )
    
    
    (160
    )Acquisition of treasury stock
    
    
    (537
    )
    
    
    (398
    )
    
    
    (658
    )Proceeds from issuance of common stock
    
    
    381
    
    
    
    267
    
    
    
    236Cash dividends paid
    
    
    (2,318
    )
    
    
    (1,593
    )
    
    
    (1,010
    )Net cash provided by (used for) financing activities
    
    
    28,035
    
    
    
    (10,981
    )
    
    
    263NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    (4,026
    )
    
    
    2,084
    
    
    
    (2,131
    )CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    15,485
    
    
    
    13,401
    
    
    
    15,532CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    11,459
    
    
    $
    15,485
    
    
    $
    13,401SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONInterest paid
    
    $
    8,830
    
    
    $
    6,904
    
    
    $
    6,135Income taxes paid
    
    
    1,790
    
    
    
    992
    
    
    
    889Loans transferred to other real estate owned
    
    
    746
    
    
    
    373
    
    
    
    
  35




---



##### 



CCFNB BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  PRINCIPLES OF CONSOLIDATION
 
 NATURE OF OPERATIONS
   SEGMENT REPORTING
   USE OF ESTIMATES
  INVESTMENT SECURITIES
   36




---



##### 



RESTRICTED SECURITIES
   LOANS
   Past Due Loans
 Non-Accrual Loans
 Impaired Loans
 Allowance for Loan Losses
 37




---



##### 



PREMISES AND EQUIPMENT
  MORTGAGE SERVICING RIGHTS
  JUNIOR SUBORDINATE DEBENTURES
  INTANGIBLE ASSETS  GOODWILL
  INTANGIBLE ASSETS  CORE DEPOSIT
  38




---



##### 



For the Year Ended:2010
    
    $
    576,0002011
    
    
    509,0002012
    
    
    442,0002013
    
    
    374,0002014
    
    
    308,000Thereafter
    
    
    559,000Total
    
    $
    2,768,000
 OTHER REAL ESTATE OWNED
  BANK OWNED LIFE INSURANCE
  INVESTMENTS IN LIMITED PARTNERSHIPS
  INVESTMENT IN INSURANCE AGENCY
  INCOME TAXES
  PER SHARE DATA
  39




---



##### 



CASH FLOW INFORMATION
  TREASURY STOCK
  TRUST ASSETS AND INCOME
  ACCUMULATED OTHER COMPREHENSIVE INCOME
  ADVERTISING COSTS
  SUBSEQUENT EVENTS
  RECENT ACCOUNTING PRONOUNCEMENTS
 FASB ASC 105-10   The FASB Accounting Standards Codification and the Hierarchy of Generally
Accepted Accounting Principles
 FASB ASC 805 Business Combinations
  40




---



##### 



FASB ASC 810-10 Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB 51
 FASB ASC 815-10 Disclosures about Derivative Instruments and Hedging Activities an amendment
of FASB Statement No. 133
 FASB ASC 855 Subsequent Events)
 FASB ASC 860 Accounting for Transfers of Financial Assets an amendment
of FASB Statement No. 140
 FASB ASC 810-10 Amendments to FASB Interpretation No. 46 (R
 FASB ASC 715-20-50 Employers Disclosures about Postretirement Benefit Plan Assets
 FASB ASC 825-10-50  Interim
Disclosures about Fair Value of Financial Instruments
 41




---



##### 



FASB ASC 320-10 Recognition and Presentation of Other-Than-Temporary Impairments
 FASB ASC 820 , Determining Fair Value When the
Volume and Level of Activity for the Asset or iability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly
 SAB 111 Other Than Temporary Impairment of Certain Investments in Debt and Equity Securities Recognition and Presentation of Other-Than-Temporary Impairments
 SAB 112
 FASB ASC 323 Equity Method
Investment Accounting Considerations
 FASB ASC 350 Accounting for Defensive
Intangible Assets
 42




---



##### 



FASB ASC 260-10 Determining Whether Instruments Granted in Share-Based
Payment Transactions are Participating Securities
 FASB ASC 820-10
 FASB ASC 820-10
 FASB ASC 505-20 
 FASB ASC 810-10 
 FASB ASC 820-10-
 RECLASSIFICATIONS
  43




---



##### 



2. RESTRICTED CASH BALANCES
  3. INVESTMENT SECURITIES AVAILABLE-FOR-SALE
  2009Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair(In Thousands)
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueObligation
of U.S.Government Corporations and Agencies:Mortgage-backed
    
    $
    134,762
    
    
    $
    4,212
    
    
    $
    (118
    )
    
    $
    138,856Other
    
    
    68,323
    
    
    
    421
    
    
    
    (405
    )
    
    
    68,339Obligations of state and political subdivisions
    
    
    11,265
    
    
    
    116
    
    
    
    (7
    )
    
    
    11,374Total debt securities
    
    
    214,350
    
    
    
    4,749
    
    
    
    (530
    )
    
    
    218,569Marketable equity securities
    
    
    2,093
    
    
    
    41
    
    
    
    (437
    )
    
    
    1,697Total investment securities AFS
    
    $
    216,443
    
    
    $
    4,790
    
    
    $
    (967
    )
    
    $
    220,266
 2008Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    Fair(In Thousands)
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueObligation
of U.S.Government Corporations and Agencies:Mortgage-backed
    
    $
    116,357
    
    
    $
    1,808
    
    
    $
    (119
    )
    
    $
    118,046Other
    
    
    63,031
    
    
    
    1,049
    
    
    
    
    
    
    
    64,080Obligations of state and political subdivisions
    
    
    9,944
    
    
    
    67
    
    
    
    (17
    )
    
    
    9,994Total debt securities
    
    
    189,332
    
    
    
    2,924
    
    
    
    (136
    )
    
    
    192,120Marketable equity securities
    
    
    2,623
    
    
    
    73
    
    
    
    (403
    )
    
    
    2,293Total investment securities AFS
    
    $
    191,955
    
    
    $
    2,997
    
    
    $
    (539
    )
    
    $
    194,413
   WeightedAmortized
    
    
    Estimated
    
    
    Average(In Thousands)
    
    Cost
    
    
    Fair Value
    
    
    YieldDue in one year or less
    
    $
    1,478
    
    
    $
    1,478
    
    
    
    3.64
    %Due after one year to five years
    
    
    58,261
    
    
    
    58,397
    
    
    
    2.99
    %Due after five years to ten years
    
    
    29,743
    
    
    
    30,316
    
    
    
    4.80
    %Due after ten years
    
    
    126,961
    
    
    
    130,075
    
    
    
    4.51
    %Total
    
    $
    216,443
    
    
    $
    220,266
  44




---



##### 



2009Less than Twelve Months
    
    
    Twelve Months or Greater
    
    
    TotalEstimated
    
    
    Gross
    
    
    Estimated
    
    
    Gross
    
    
    Estimated
    
    
    GrossFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized(In Thousands)
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesObligations
of U.S. Government Corporations and Agencies:Mortgage-backed
    
    $
    8,105
    
    
    $
    117
    
    
    $
    51
    
    
    $
    1
    
    
    $
    8,156
    
    
    $
    118Other
    
    
    28,876
    
    
    
    405
    
    
    
    
    
    
    
    
    
    
    
    28,876
    
    
    
    405Obligations of state and political subdivisions
    
    
    1,856
    
    
    
    7
    
    
    
    
    
    
    
    
    
    
    
    1,856
    
    
    
    7Total debt securities
    
    
    38,837
    
    
    
    529
    
    
    
    51
    
    
    
    1
    
    
    
    38,888
    
    
    
    530Equity securities
    
    
    366
    
    
    
    159
    
    
    
    806
    
    
    
    278
    
    
    
    1,172
    
    
    
    437Total
    
    $
    39,203
    
    
    $
    688
    
    
    $
    857
    
    
    $
    279
    
    
    $
    40,060
    
    
    $
    967
 45




---



##### 



2008Less than Twelve Months
    
    
    Twelve Months or Greater
    
    
    TotalEstimated
    
    
    Gross
    
    
    Estimated
    
    
    Gross
    
    
    Estimated
    
    
    GrossFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized(In Thousands)
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesObligations of U.S. Government Corporations
and Agencies:Mortgage-backed
    
    $
    12,894
    
    
    $
    114
    
    
    $
    1,481
    
    
    $
    5
    
    
    $
    14,375
    
    
    $
    119Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0
    
    
    
    
    
    
    
    Obligations of state and political subdivisions
    
    
    1,004
    
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    1,004
    
    
    
    17Total debt securities
    
    
    13,898
    
    
    
    131
    
    
    
    1,481
    
    
    
    5
    
    
    
    15,379
    
    
    
    136Equity securities
    
    
    1,327
    
    
    
    304
    
    
    
    617
    
    
    
    99
    
    
    
    1,944
    
    
    
    403Total
    
    $
    15,225
    
    
    $
    435
    
    
    $
    2,098
    
    
    $
    104
    
    
    $
    17,323
    
    
    $
    539
    December 31, 2009Gross
    
    
    Gross
    
    
    Estimated(In Thousands)
    
    Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairAsset size($)
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueUnder $1 Billion
    
    $
    414
    
    
    $
    12
    
    
    $
    (61
    )
    
    $
    365$1 to $5 Billion
    
    
    213
    
    
    
    
    
    
    
    (68
    )
    
    
    145$6 to $100 billion
    
    
    780
    
    
    
    13
    
    
    
    (233
    )
    
    
    560Over $100 Billion
    
    
    686
    
    
    
    16
    
    
    
    (75
    )
    
    
    627$
    2,093
    
    
    $
    41
    
    
    $
    (437
    )
    
    $
    1,697
 December 31, 2009Gross
    
    
    Gross
    
    
    Estimated(In Thousands)
    
    Amortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairGeographic Region
    
    Cost
    
    
    Gains
    
    
    Losses
    
    
    ValueEastern U.S.
    
    $
    1,003
    
    
    $
    20
    
    
    $
    (248
    )
    
    $
    775Southeastern U.S.
    
    
    110
    
    
    
    
    
    
    
    (17
    )
    
    
    93Western U.S.
    
    
    53
    
    
    
    
    
    
    
    (27
    )
    
    
    26National
    
    
    927
    
    
    
    21
    
    
    
    (145
    )
    
    
    803$
    2,093
    
    
    $
    41
    
    
    $
    (437
    )
    
    $
    1,697
 46




---



##### 



4. LOANS
  (In Thousands)2009
    
    
    2008Commercial, financial and agricultural
    
    $
    37,642
    
    
    $
    27,165Tax-exempt
    
    
    18,055
    
    
    
    16,762Real estate
    
    
    253,463
    
    
    
    262,539Real estate construction
    
    
    13,526
    
    
    
    5,307Installment loans to individuals
    
    
    7,725
    
    
    
    8,202Add (deduct): Unearned discount
    
    
    (15
    )
    
    
    (24
    )Unamortized loan costs, net of fees
    
    
    93
    
    
    
    117Gross loans
    
    $
    330,489
    
    
    $
    320,068
    (In Thousands)
    
    2009
    
    
    2008
    
    
    2007Gross interest due under terms
    
    $
    285
    
    
    $
    320
    
    
    $
    10Amount included in income
    
    
    (241
    )
    
    
    (116
    )
    
    
    (4
    )Interest income not recognized
    
    $
    44
    
    
    $
    204
    
    
    $
    6
    47




---



##### 



(In Thousands)
    
    2009
    
    
    2008
    
    
    2007Balance, beginning of year
    
    $
    3,758
    
    
    $
    1,437
    
    
    $
    1,456Provision charged to operations
    
    
    1,025
    
    
    
    750
    
    
    
    30Allowance acquired
    
    
    
    
    
    
    1,683
    
    
    
    Loans charged off
    
    
    (599
    )
    
    
    (148
    )
    
    
    (85
    )Recoveries
    
    
    26
    
    
    
    36
    
    
    
    36Balance, end of year
    
    $
    4,210
    
    
    $
    3,758
    
    
    $
    1,437
  5. MORTGAGE SERVICING RIGHTS
   (In Thousands)
    
    2009
    
    
    2008Balance, beginning of year
    
    $
    206
    
    
    $
    49Servicing asset additions and acquisition
    
    
    214
    
    
    
    201Amortization
    
    
    (76
    )
    
    
    (44
    )Balance, end of year
    
    $
    344
    
    
    $
    206
  6. PREMISES AND EQUIPMENT
  (In Thousands)
    
    2009
    
    
    2008Land
    
    $
    1,704
    
    
    $
    1,514Premises
    
    
    11,305
    
    
    
    12,550Furniture and equipment
    
    
    9,803
    
    
    
    9,696Leasehold improvements
    
    
    64
    
    
    
    64Total
    
    
    22,876
    
    
    
    23,824Less accumulated depreciation
and amortization
    
    
    10,293
    
    
    
    11,215Net premises and equipment
    
    $
    12,583
    
    
    $
    12,609
  48




---



##### 



7. DEPOSITS
  (In Thousands)
    
    2009
    
    
    2008Demand deposits
    
    $
    55,734
    
    
    $
    52,460Interest-bearing demand deposits
    
    
    71,396
    
    
    
    63,776Savings
    
    
    101,537
    
    
    
    92,385Time deposits over $100,000
    
    
    71,720
    
    
    
    58,379Other time deposits
    
    
    161,901
    
    
    
    167,309Total deposits
    
    $
    462,288
    
    
    $
    434,309
  (In Thousands)2010
    
    $
    37,8172011
    
    
    7,4732012
    
    
    21,8332013
    
    
    2,3792014
    
    
    2,218Total
    
    $
    71,720
  8. SHORT-TERM BORROWINGS
  2009Weighted
    
    
    MaximumEnding
    
    
    Average
    
    
    Month End
    
    
    Average(In Thousands)
    
    Balance
    
    
    Balance
    
    
    Balance
    
    
    RateSecurities sold under agreements
to repurchase
    
    $
    51,682
    
    
    $
    47,873
    
    
    $
    56,253
    
    
    
    0.76
    %Other short-term borrowings
    
    
    
    
    
    
    352
    
    
    
    5,400
    
    
    
    0.64
    %U.S. Treasury tax and loan notes
    
    
    315
    
    
    
    601
    
    
    
    994
    
    
    
    0.00
    %Total
    
    $
    51,997
    
    
    $
    48,826
    
    
    $
    62,647
    
    
    
    0.75
    %
 2008Weighted
    
    
    MaximumEnding
    
    
    Average
    
    
    Month End
    
    
    Average(In Thousands)
    
    Balance
    
    
    Balance
    
    
    Balance
    
    
    RateSecurities sold under agreements
to repurchase
    
    $
    54,462
    
    
    $
    41,573
    
    
    $
    62,692
    
    
    
    1.77
    %Other short-term borrowings
    
    
    
    
    
    
    849
    
    
    
    5,400
    
    
    
    1.04
    %U.S. Treasury tax and loan notes
    
    
    1,000
    
    
    
    490
    
    
    
    1,000
    
    
    
    1.38
    %Total
    
    $
    55,462
    
    
    $
    42,912
    
    
    $
    69,092
    
    
    
    1.76
    %
 9. LONG-TERM BORROWINGS
  49




---



##### 



(In Thousands)
    
    2009
    
    
    2008Loan dated June 25, 1998 in the original amount of $72,000 for a 30-year term
requiring monthly payments of $425 including interest at 5.86%.
    
    $
    58
    
    
    $
    60Loan dated February 23, 1999 in the original amount of $29,160 for a 20-year term
requiring monthly payments of $179 including interest at 5.50%.
    
    
    21
    
    
    
    22Loan dated August 20, 1999 in the original amount of $32,400 for a 20-year term
requiring monthly payments of $199 including interest at 5.50%.
    
    
    24
    
    
    
    25Loan dated January 27, 2000 in the original amount of $5,000,000 for a 10-year term
with a 1-year conversion date, at the discretion of FHLB, and a 3-month conversion
frequency thereafter. At December 31, 2009 the interest rate was 6.00%.
    
    
    5,000
    
    
    
    5,000Loan dated August 16, 2000 in the original amount of $2,000,000 for a 10-year term
with a 6-month conversion date, at the discretion of FHLB, and a 3-month conversion
frequency thereafter. At December 31, 2009 the interest rate was 5.93%.
    
    
    2,000
    
    
    
    2,000Loan dated September 20, 2000 in the original amount of $2,000,000 for a 10-year term
with a 3-year conversion date, at the discretion of FHLB, and a 3-month conversion
frequency thereafter. At December 31, 2009 the interest rate was 6.10%.
    
    
    2,000
    
    
    
    2,000Loan dated December 13, 2000 in the original amount of $32,092 for a 20-year term
requiring monthly payments of $197 including interest at 5.50%.
    
    
    25
    
    
    
    26Three FHLB Fixed Rate Community Lending Program loans dated May 7, 2009 in the
original amount of $1,000,000 each for terms ranging from 3 to 5 years. At
December 31, 2009 the interest rates ranged from 2.03% to 2.94%.
    
    
    3,000
    
    
    
    Three FHLB Fixed Rate Community Lending Program loans dated July 15, 2009 in the
original amount of $1,000,000 each for terms ranging from 3 to 5 years. At
December 31, 2009 the interest rates ranged from 1.99% to 3.04%.
    
    
    3,000
    
    
    
    Total
    
    $
    15,128
    
    
    $
    9,133
  (In Thousands)2010
    
    $
    9,0052011
    
    
    52012
    
    
    2,0052013
    
    
    2,0062014
    
    
    2,006Thereafter
    
    
    101Total
    
    $
    15,128
 50




---



##### 



10. COMPREHENSIVE INCOME
  Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007Unrealized holding gains on available-for-saleinvestment securities
    
    $
    1,750
    
    
    $
    2,671
    
    
    $
    262Reclassification adjustment for (losses) gains realized in income
    
    
    (385
    )
    
    
    (431
    )
    
    
    1Change in unrealized gains before tax effect
    
    
    1,365
    
    
    
    2,240
    
    
    
    263Tax effect
    
    
    464
    
    
    
    762
    
    
    
    89Net change in unrealized gains
    
    $
    901
    
    
    $
    1,478
    
    
    $
    174
 11. STOCKHOLDERS EQUITY AND STOCK PURCHASE PLANS
   Average Per ShareEmployees
    
    
    MarketNumber
    
    
    Purchase
    
    
    Valueof Shares
    
    
    Price
    
    
    of SharesYear Issued:2009
    
    
    3154
    
    
    $
    20.96
    
    
    $
    22.552008
    
    
    606
    
    
    $
    22.86
    
    
    $
    25.402007
    
    
    557
    
    
    $
    25.50
    
    
    $
    28.33
  Number
    
    
    Total(In Thousands, Except Per Share Data)
    
    of Shares
    
    
    ProceedsYear:2009
    
    
    14,616
    
    
    $
    3192008
    
    
    11,652
    
    
    $
    2542007
    
    
    8,315
    
    
    $
    222
 51




---



##### 



12. INCOME TAXES
  For the Years Ended December 31,(In Thousands)
    
    2009
    
    
    2008
    
    
    2007Currently payable
    
    $
    1,980
    
    
    $
    1,155
    
    
    $
    913Deferred tax (benefit)
    
    
    75
    
    
    
    (259
    )
    
    
    (25
    )Total income tax provision
    
    $
    2,055
    
    
    $
    896
    
    
    $
    888
  (In Thousands)
    
    2009
    
    
    2008
    
    
    2007Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Provision at statutory rate
    
    $
    2,697
    
    
    
    34.0
    %
    
    $
    1,351
    
    
    
    34.0
    %
    
    $
    1,202
    
    
    
    34.0
    %Tax-exempt income
    
    
    (409
    )
    
    
    (5.2
    )
    
    
    (327
    )
    
    
    (8.2
    )
    
    
    (236
    )
    
    
    (6.7
    )Bank-owned life insurance income-net
    
    
    (152
    )
    
    
    (1.9
    )
    
    
    (124
    )
    
    
    (3.1
    )
    
    
    (97
    )
    
    
    (2.7
    )Tax credit from limited partnerships
less amortization, net
    
    
    (46
    )
    
    
    (0.6
    )
    
    
    (68
    )
    
    
    (1.7
    )
    
    
    
    
    
    
    Non-decuctible expenses
    
    
    268
    
    
    
    3.4
    
    
    
    51
    
    
    
    1.3
    
    
    
    32
    
    
    
    0.9Other, net
    
    
    (303
    )
    
    
    (3.8
    )
    
    
    13
    
    
    
    0.2
    
    
    
    (13
    )
    
    
    (0.4
    )Effective income tax and rate
    
    $
    2,055
    
    
    
    25.9
    %
    
    $
    896
    
    
    
    22.5
    %
    
    $
    888
    
    
    
    25.1
    %
  (In Thousands)
    
    2009
    
    
    2008Deferred tax assets:Allowance for loan losses
    
    $
    1,101
    
    
    $
    991Allowance for off balance sheet losses
    
    
    3
    
    
    
    3Deferred compensation and directors fees
    
    
    418
    
    
    
    488Non-accrual loan interest
    
    
    21
    
    
    
    106Investment in limited partnerships
    
    
    106
    
    
    
    96Impairment losses on investment securities
    
    
    378
    
    
    
    445* Property valuation
    
    
    280
    
    
    
    309Capital loss carryforward
    
    
    238
    
    
    
    41Total
    
    
    2,545
    
    
    
    2,479Deferred tax liabilities:Loan fees and costs
    
    
    (32
    )
    
    
    (39
    )Bond accretion
    
    
    (73
    )
    
    
    (63
    )Depreciation
    
    
    (598
    )
    
    
    (609
    )Investment in insurance agency
    
    
    (22
    )
    
    
    (17
    )* Intangibles
    
    
    (905
    )
    
    
    (843
    )* Other
    
    
    (308
    )
    
    
    (224
    )Unrealized investment security gains
    
    
    (1,299
    )
    
    
    (836
    )Total
    
    
    (3,237
    )
    
    
    (2,631
    )Deferred tax liability, net
    
    $
    (692
    )
    
    $
    (152
    )
  52




---



##### 



13. EMPLOYEE BENEFIT AND DEFERRED COMPENSATION PLANS
 EMPLOYEE BENEFIT PLANS
  DEFERRED COMPENSATION PLANS
 Directors
     Officers
  53




---



##### 



14. LEASE COMMITMENTS AND CONTINGENCIES
  (In Thousands)2010
    
    $
    2142011
    
    
    2722012
    
    
    2752013
    
    
    1212014
    
    
    41Thereafter
    
    
    10Total
    
    $
    933
  15. ACQUISITION
  54




---



##### 



(In Thousands)Purchase price
    
    $
    26,316Carrying value of net assets acquired
    
    
    (17,855
    )Excess of purchase price over carrying value
of net assets acquired
    
    
    8,461Purchase accounting adjustments:Loans
    
    
    30Premises and equipment
    
    
    853Deposits
    
    
    1,235Severance and related costs
    
    
    840Deferred taxes
    
    
    208Subtotal
    
    
    11,627Core deposit intangibles
    
    
    (3,690
    )Goodwill
    
    $
    7,937
  (In Thousands)AssetsCash and cash equivalents
    
    $
    5,157Interest-bearing deposits in other banks
    
    
    129Federal funds sold
    
    
    517Investment securities
    
    
    138,257Loans, net of allowance for loan losses
    
    
    160,724Premises and equipment
    
    
    6,492Accrued interest receivable
    
    
    1,534Bank-owned life insurance
    
    
    3,462Investment in limited partnerships
    
    
    919Goodwill and other intangibles
    
    
    11,627Other assets
    
    
    564Total assets
    
    $
    329,382LiabilitiesDeposits
    
    $
    264,692Borrowings
    
    
    31,883Junior subordinate debentures
    
    
    4,640Accrued interest payable
    
    
    764Other liabilities
    
    
    1,087Total liabilities
    
    $
    303,066Fair value of net assets acquired
    
    $
    26,316
 55




---



##### 



For the Years Ended December 31,(In Thousands, Except Per Share Data)
    
    2008
    
    
    2007Net interest income
    
    $
    19,132
    
    
    $
    18,047Provision for loan losses
    
    
    775
    
    
    
    330Net interest income after provision for loan losses
    
    
    18,357
    
    
    
    17,717Non-interest income
    
    
    4,739
    
    
    
    4,137Non-interest expense
    
    
    16,923
    
    
    
    16,181Income before income tax provision
    
    
    6,173
    
    
    
    5,673Income tax provision
    
    
    1,743
    
    
    
    1,297Net income
    
    $
    4,430
    
    
    $
    4,376Net income per common share
    
    $
    1.97
    
    
    $
    1.93Average common shares outstanding
    
    
    2,251,486
    
    
    
    2,263,625
  16. RELATED PARTY TRANSACTIONS
  Beginning
    
    
    
    
    
    
    
    
    
    
    Ending(In Thousands)
    
    Balance
    
    
    Additions
    
    
    Payments
    
    
    Balance2009
    
    $
    7,803
    
    
    $
    1,441
    
    
    $
    (1,399
    )
    
    $
    7,8452008
    
    
    926
    
    
    
    7,633
    
    
    
    (756
    )
    
    
    7,803
    17. REGULATORY MATTERS
  56




---



##### 



2009
    
    
    2008(In Thousands)
    
    Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTotal Capital 
(to Risk-weighted Assets)Actual
    
    $
    60,322
    
    
    
    17.6
    %
    
    $
    55,851
    
    
    
    16.5
    %For Capital Adequacy Purposes
    
    
    27,394
    
    
    
    8.0
    
    
    
    27,112
    
    
    
    8.0To Be Well-Capitalized
    
    
    34,243
    
    
    
    10.0
    
    
    
    33,890
    
    
    
    10.0Tier I Capital
(to Risk-weighted Assets)Actual
    
    $
    56,102
    
    
    
    16.4
    %
    
    $
    52,083
    
    
    
    15.4
    %For Capital Adequacy Purposes
    
    
    13,697
    
    
    
    4.0
    
    
    
    13,556
    
    
    
    4.0To Be Well-Capitalized
    
    
    20,546
    
    
    
    6.0
    
    
    
    20,334
    
    
    
    6.0Tier I Capital 
(to Average Assets)Actual
    
    $
    56,102
    
    
    
    9.8
    %
    
    $
    52,083
    
    
    
    9.3
    %For Capital Adequacy Purposes
    
    
    22,861
    
    
    
    4.0
    
    
    
    22,476
    
    
    
    4.0To Be Well-Capitalized
    
    
    28,577
    
    
    
    5.0
    
    
    
    28,095
    
    
    
    5.0
  18. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF
 CREDIT RISK
  57




---



##### 



(In Thousands)
    
    2009
    
    
    2008Financial instruments whose contract amounts repsresent credit risk:Commitments to extend credit
    
    $
    71,868
    
    
    $
    68,412Standby letters of credit
    
    
    3,393
    
    
    
    3,064Dealer floor plans
    
    
    932
    
    
    
    1,129Loans held for sale
    
    
    267
    
    
    
    72
     19. FAIR VALUE MEASUREMENTS
  Level I:
    
    Quoted prices are available in active markets for identical assets or liabilities as of
the reported date.Level II:
    
    Pricing inputs are other than quoted prices in active markets, which are either
directly or indirectly
observables as of the reported date. The nature of these assets and liabilities include
items for which quoted prices are available but traded less frequently, and items that
are fair valued using other financial instruments of which can be directly observed.Level III:
    
    Assets and liabilities that have little or no pricing observability as of the
reported date. These items do not have two-way markets and are measured using
managements best estimate of fair value, where the inputs into determination of fair
value require significant management judgment or estimation.
 58




---



##### 



December 31, 2009(In Thousands)
    
    Level I
    
    
    Level II
    
    

Level III
    

    
    TotalAssets Measured on a Recurring Basis:Investment Securities, available-for-sale
    
    $
    1,697
    
    
    $
    218,569
    
    
    $
    
    
    
    $
    220,266
 December 31, 2008(In Thousands)
    
    Level I
    
    
    Level II
    
    

Level III
    

    
    TotalAssets Measured on a Recurring Basis:Investment Securities, available-for-sale
    
    $
    2,293
    
    
    $
    192,120
    
    
    $
    
    
    
    $
    194,413
  December 31, 2009(In Thousands)
    
    Level I
    
    
    Level II
    
    

Level III
    

    
    TotalAvailable for sale securitiesObligation of US Government AgenciesMortgage-backed
    
    $
    
    
    
    $
    138,856
    
    
    $
    
    
    
    $
    138,856Other
    
    
    
    
    
    
    68,339
    
    
    
    
    
    
    
    68,339Obligations of state and political subdivisions
    
    
    
    
    
    
    11,374
    
    
    
    
    
    
    
    11,374Equity securities
    
    
    1,697
    
    
    
    
    
    
    
    
    
    
    
    1,697$
    1,697
    
    
    $
    218,569
    
    
    $
    
    
    
    $
    220,266
 December 31, 2008(In Thousands)
    
    Level I
    
    
    Level II
    
    

Level III
    

    
    TotalAvailable for sale securitiesObligation of US Government AgenciesMortgage-backed
    
    $
    
    
    
    $
    118,046
    
    
    $
    
    
    
    $
    118,046Other
    
    
    
    
    
    
    64,080
    
    
    
    
    
    
    
    64,080Obligations of state and political subdivisions
    
    
    
    
    
    
    9,994
    
    
    
    
    
    
    
    9,994Equity securities
    
    
    2,293
    
    
    
    
    
    
    
    
    
    
    
    2,293$
    2,293
    
    
    $
    192,120
    
    
    $
    
    
    
    $
    194,413
   59




---



##### 



December 31, 2009(In Thousands)
    
    Level I
    
    
    Level II
    
    

Level III
    

    
    TotalAssets Measured on a Non-recurring Basis:Impaired Loans
    
    $
    
    
    
    $
    4,839
    
    
    $
    
    
    
    $
    4,839Loans Held for Sale
    
    
    
    
    
    
    72
    
    
    
    
    
    
    
    72Mortgage Servicing Rights
    
    
    
    
    
    
    344
    
    
    
    
    
    
    
    344Other Real Estate Owned
    
    
    
    
    
    
    29
    
    
    
    
    
    
    
    29$
    
    
    
    $
    5,284
    
    
    $
    
    
    
    $
    5,284
 December 31, 2008(In Thousands)
    
    Level I
    
    
    Level II
    
    

Level III
    

    
    TotalAssets Measured on a Non-recurring Basis:Impaired Loans
    
    $
    
    
    
    $
    4,453
    
    
    $
    
    
    
    $
    4,453Loans Held for Sale
    
    
    
    
    
    
    267
    
    
    
    
    
    
    
    267Mortgage Servicing Rights
    
    
    
    
    
    
    206
    
    
    
    
    
    
    
    206Other Real Estate Owned
    
    
    
    
    
    
    373
    
    
    
    
    
    
    
    373$
    
    
    
    $
    5,299
    
    
    $
    
    
    
    $
    5,299
 20. ESTIMATED FAIR VALUES OF FINANCIAL INSTRUMENTS
   2009
    
    
    2008Carrying
    
    
    Estimated
    
    
    Carrying
    
    
    Estimated(In Thousands)
    
    Amount
    
    
    Fair Value
    
    
    Amount
    
    
    Fair ValueFinancial Assets:Cash and short-term instruments
    
    $
    11,459
    
    
    $
    11,459
    
    
    $
    15,485
    
    
    $
    15,485Investment securities
    
    
    220,266
    
    
    
    220,266
    
    
    
    194,413
    
    
    
    194,413Restricted securities
    
    
    2,984
    
    
    
    2,984
    
    
    
    2,167
    
    
    
    2,167Loans, net
    
    
    326,279
    
    
    
    329,726
    
    
    
    316,310
    
    
    
    317,203Cash surrender value of bank owned life insurance
    
    
    11,440
    
    
    
    11,440
    
    
    
    10,943
    
    
    
    10,943Accrued interest receivable
    
    
    2,043
    
    
    
    2,043
    
    
    
    2,388
    
    
    
    2,388Financial Liabilities:Interest- bearing deposits
    
    
    406,554
    
    
    
    410,168
    
    
    
    381,849
    
    
    
    384,105Noninterest- bearing deposits
    
    
    55,734
    
    
    
    55,734
    
    
    
    52,460
    
    
    
    52,460Short-term borrowings
    
    
    51,997
    
    
    
    51,997
    
    
    
    55,462
    
    
    
    55,462Long-term borrowings
    
    
    15,128
    
    
    
    15,375
    
    
    
    9,133
    
    
    
    9,452Junior subordinate debentures
    
    
    4,640
    
    
    
    4,640
    
    
    
    4,640
    
    
    
    4,640Accrued interest payable
    
    
    859
    
    
    
    859
    
    
    
    1,075
    
    
    
    1,075Off-Balance Sheet Assets (Liabilities):Commitments to extend credit
    
    
    
    
    
    $
    71,868
    
    
    
    
    
    
    $
    68,412Standby letters of credit
    
    
    
    
    
    
    3,393
    
    
    
    
    
    
    
    3,064Dealer floor plans
    
    
    
    
    
    
    932
    
    
    
    
    
    
    
    1,129
 60




---



##### 



61




---



##### 



21. PARENT COMPANY FINANCIAL INFORMATION
  BALANCE SHEETS
 December 31,2009
    
    
    2008
    
    
    2007AssetsCash
    
    $
    793
    
    
    $
    524
    
    
    $
    131Investment in subsidiary
    
    
    65,927
    
    
    
    61,568
    
    
    
    30,091Investment in other equity securities
    
    
    1,697
    
    
    
    2,292
    
    
    
    1,037Prepayments and other assets
    
    
    1,226
    
    
    
    942
    
    
    
    402Receivable from subsidiary
    
    
    109
    
    
    
    200
    
    
    
    Total Assets
    
    $
    69,752
    
    
    $
    65,526
    
    
    $
    31,661Liabilities and Stockholders EquityJunior subordinate debentures
    
    $
    4,640
    
    
    
    4,640
    
    
    
    Accrued expenses and other liabilities
    
    
    26
    
    
    $
    111
    
    
    $
    15Payable to subsidiary
    
    
    
    
    
    
    
    
    
    
    19Total Liabilities
    
    
    4,666
    
    
    
    4,751
    
    
    
    34Stockholders EquityCommon stock
    
    
    2,838
    
    
    
    2,816
    
    
    
    1,533Surplus
    
    
    27,539
    
    
    
    27,173
    
    
    
    2,271Retained earnings
    
    
    32,723
    
    
    
    29,164
    
    
    
    27,679Accumulated other comprehensive income
    
    
    2,523
    
    
    
    1,622
    
    
    
    144Treasury stock
    
    
    (537
    )
    
    
    
    
    
    
    Total Stockholders Equity
    
    
    65,086
    
    
    
    60,775
    
    
    
    31,627Total Liabilities and Stockholders Equity
    
    $
    69,752
    
    
    $
    65,526
    
    
    $
    31,661
 STATEMENTS OF INCOME
 Years Ended December 31,2009
    
    
    2008
    
    
    2007IncomeDividends from subsidiary bank
    
    $
    2,818
    
    
    $
    2,359
    
    
    $
    1,534Dividends  other
    
    
    55
    
    
    
    81
    
    
    
    46Securities losses, net
    
    
    (383
    )
    
    
    (431
    )
    
    
    Interest
    
    
    
    
    
    
    
    
    
    
    1Total Income
    
    
    2,490
    
    
    
    2,009
    
    
    
    1,581Operating expenses
    
    
    245
    
    
    
    202
    
    
    
    89Income Before Taxes and Equity in UndistributedNet Income of Subsidiary and Insurance Agency
    
    
    2,245
    
    
    
    1,807
    
    
    
    1,492Applicable income tax benefit
    
    
    (204
    )
    
    
    (206
    )
    
    
    (21
    )Income Before Equity in Undistributed Net Income of Subsidiary
and Equity in Income from Insurance Agency
    
    
    2,449
    
    
    
    2,013
    
    
    
    1,513Equity in undistributed income of subsidiary
    
    
    3,414
    
    
    
    1,059
    
    
    
    1,122Equity in income from investment in insurance agency
    
    
    14
    
    
    
    6
    
    
    
    12Net Income
    
    $
    5,877
    
    
    $
    3,078
    
    
    $
    2,647
 STATEMENTS OF CASH FLOWS
 Years Ended December 31,2009
    
    
    2008
    
    
    2007Operating Activities:Net income
    
    $
    5,877
    
    
    $
    3,078
    
    
    $
    2,647Adjustments to reconcile net income to net cash provided by operating activities:Securities losses (gains)
    
    
    314
    
    
    
    (6
    )
    
    
    Impairment losson securites
    
    
    69
    
    
    
    437
    
    
    
    Equity in undistributed net income of subsidiary
    
    
    (3,414
    )
    
    
    (1,059
    )
    
    
    (1,122
    )Increase in amounts due from subsidiary
    
    
    (44
    )
    
    
    (219
    )
    
    
    Decrease in income taxes and accrued expenses payable
    
    
    (230
    )
    
    
    (263
    )
    
    
    (124
    )Net Cash Provided By Operating Activities
    
    
    2,572
    
    
    
    1,968
    
    
    
    1,401Investing Activities:Purchase of equity securities
    
    
    
    
    
    
    (153
    )
    
    
    Acquisition of bank cash
    
    
    
    
    
    
    251
    
    
    
    Proceeds from sale of equity securities
    
    
    164
    
    
    
    51
    
    
    
    Net Cash Provided By Investing Activities
    
    
    164
    
    
    
    149
    
    
    
    Financing Activities:Acquisition of treasury stock
    
    
    (537
    )
    
    
    (398
    )
    
    
    (658
    )Proceeds from issuance of common stock
    
    
    388
    
    
    
    267
    
    
    
    236Cash dividends
    
    
    (2,318
    )
    
    
    (1,593
    )
    
    
    (1,010
    )Net Cash Used In Financing Activities
    
    
    (2,467
    )
    
    
    (1,724
    )
    
    
    (1,432
    )Increase (Decrease) in Cash and Cash Equivalents
    
    
    269
    
    
    
    393
    
    
    
    (31
    )Cash and Cash Equivalents at Beginning of Year
    
    
    524
    
    
    
    131
    
    
    
    162Cash and Cash Equivalents at End of Year
    
    $
    793
    
    
    $
    524
    
    
    $
    131
 62




---



##### 



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      
 63




---



##### 



Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
  Item 9A(T). Controls and Procedures
 (a) Disclosure Controls and Internal Controls
   .
 Limitations on the Effectiveness of Controls.
 Scope of the Controls Evaluation
  64




---



##### 



Conclusions
 (b) Managements Report on Internal Control Over Financial Reporting
      /s/ Lance O. DiehlPresident
Chief Executive Officer  /s/ Jeffrey T. ArnoldChief Financial Officer and Treasurer  65




---



##### 



(c) Changes to Internal Control Over Financial Reporting
  Item 9B. Other Information
  PART III
 Item 10. Directors, Executive Officers and Corporate Governance
 Directors
  Executive Officers
  Compliance with Section 16(a) of the Exchange Act
  Disclosure of Code of Ethics
 www.firstcolumbiabank.com
 Corporate Governance
  Item 11. Executive Compensation
  Item 12. Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
   Item 13. Certain Relationships and Related Transactions, Director Independence
 Certain Relationships and Related Transactions
  Director Independence
  66




---



##### 



14. Principal Accounting Fees and Services
  PART IV
 Item 15. Exhibits and Financial Statement Schedules
   
   3.1

    Amended and Restated Articles of Incorporation (1)3.2

    Amended Bylaws10.1

    Executive Employment Agreement of Lance O. Diehl (2)10.2

    Executive Employment Agreement of Edwin A. Wenner (3)10.3

    Form of Deferred Director Fees Agreement (4)10.4

    Supplemental Executive Retirement Plan Agreement and Amendment for Lance O. Diehl (5))10.5

    Supplemental Executive Retirement Plan Agreement and Amendment for Edwin A. Wenner (6)10.6

    Supplemental Executive Retirement Plan Agreement for Paul Page (7)10.7

    Executive Employment Agreement for Paul Page (8)21

    List of Subsidiaries of the Corporation23

    Consent of Independent Registered Public Accounting Firm31.1

    Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer31.2

    Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer32.1

    Section 1350 Certification of Chief Executive Officer32.2

    Section 1350 Certification of Chief Financial Officer
 
 (1)
    
    Incorporated by reference to Exhibit 1 to Registrants Current Report on Form 8-K,
dated May 9, 2005, filed with the commission on May 10, 2005.(2)
    
    Incorporated by reference to Exhibit 10.6 to Registrants Registration Statement on
Form S-4 filed with the Commission on March 27, 2008.(3)
    
    Incorporated by reference to Exhibit 10.7 to Registrants Registration Statement on
Form S-4 filed with the Commission on March 27, 2008.(4)
    
    Incorporated by reference to Exhibit 10.3 to Registrants Current Report on Form 8-K,
dated December 14, 2004, filed with the Commission on December 15, 2004.(5)
    
    Incorporated by reference to Exhibit 10.4 to Registrants Current Report on Form 8-K,
dated December 14, 2004, filed with the Commission on December 15, 2004.(6)
    
    Incorporated by reference to Exhibit 10.5 to Registrants Current Report on Form 8-K,
dated December 14, 2004, filed with the Commission on December 15, 2004. 67




---



##### 



(7)
    
    Incorporated by reference to Exhibit 1 to Registrants Current Report on Form 8-K,
dated May 27, 2009, filed with the Commission on May 28, 2009.(8)
    
   Incorporated by reference to Exhibit 10.9 to Registrants Registration Statement on
Form S-4 filed with the Commission on March 27, 2008.   SIGNATURES
  
 By:
    
    /s/ Lance O. Diehl
    
    Date: March 9, 2010Lance O. DiehlPresident and Chief Executive Officer
  By:
    
    /s/ Robert W. Brewington, Jr.
    
    Date: March 9, 2010Robert W. Brewington, Jr.DirectorBy:
    
    /s/ Edward L. Campbell
    
    Date: March 9, 2010Edward L. Campbell.DirectorBy:
    
    /s/ Lance O. Diehl
    
    Date: March 9, 2010Lance O. DiehlPresident, Chief Executive Officer and Director(Principal Executive Officer)By:
    
    /s/ Robert W. Dillon
    
    Date: March 9, 2010Robert W. DillonDirectorBy:
    
    /s/ Frank D. Gehrig
    
    Date: March 9, 2010Frank D. GehrigDirectorBy:
    
    /s/ William F. Gittler
    
    Date: March 9, 2010William F. GittlerDirectorBy:
    
    /s/ Glenn E. Halterman
    
    Date: March 9, 2010Glenn E. HaltermanDirector, Chairman of the BoardBy:
    
    /s/ Elwood R. Harding, Jr.
    
    Date: March 9, 2010Elwood R. Harding, Jr.Director
 68




---



##### 



By:
    
    /s/ Joanne I. Keenan
    
    Date: March 9, 2010Joanne I. KeenanDirectorBy:
    
    /s/ Willard H. Kile, Jr.
    
    Date: March 9, 2010Willard H. Kile, Jr.DirectorBy:
    
    /s/ W. Bruce McMichael, Jr.
    
    Date: March 9, 2010W. Bruce McMichael, Jr.DirectorBy:
    
    /s/ Mary Ann B. Naugle
    
    Date: March 9, 2010Mary Ann B. NaugleDirectorBy:
    
    /s/ Andrew B. Pruden
    
    Date: March 9, 2010Andrew B. PrudenDirectorBy:
    
    /s/ Charles B. Pursel
    
    Date: March 9, 2010Charles B. PurselDirectorBy:
    
    /s/ Paul E. Reichart
    
    Date: March 9, 2010Paul E. ReichartDirector, Vice Chairman of the BoardBy:
    
    /s/ Steven H. Shannon
    
    Date: March 9, 2010Steven H. ShannonDirectorBy:
    
    /s/ Jeffrey T. Arnold
    
    Date: March 9, 2010Jeffrey T. ArnoldChief Financial Officer and Treasurer(Principal Financial Officer)(Principal Accounting Officer)
 INDEX TO EXHIBITS
 Item Number
    
    Description
    
    Page3.2
    
    Amended Bylaws of CCFNB Bancorp, Inc.
    
    
    7021
    
    List of Subsidiaries of the Corporation
    
    
    7923
    
    Consent of Independent Registered Public Accounting
Firm
    
    
    8031.1
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief
Executive Officer
    
    
    8131.2
    
    Rule 13a-14(a)/15d-14(a) Certification of Chief
Financial Officer
    
    
    8232.1
    
    Section 1350 Certification of Chief Executive Officer
    
    
    8332.2
    
    Section 1350 Certification of Chief Financial Officer
    
    
    84
 69