CNB Financial Corp. Reports Third Quarter Earnings.

CANAJOHARIE, N.Y.--(BUSINESS WIRE)--Oct. 20, 1998--For the quarter ended September 30, 1998, CNB Financial Corp. (NASDAQ: CNBF) reported net income of $1,852,000, a decrease of $144,000 or 7.2 percent from the $1,996,000 earned for the same quarter of the previous year.

Diluted earnings per share for the quarter ended September 30, 1998 were $0.24 down from $0.26 for the quarter ended September 30, 1997. All per share amounts have been adjusted for the 2-for-1 stock split distributed on June 30, 1998. Net income for the nine months ended September 30, 1998 was $5,428,000, a decrease of $384,000 or 6.6 percent from the amount earned for the comparable period of the previous year. Diluted earnings per share for the nine months ended September 39, 1998 were $0.71, down 5.3 percent from the $0.75 earned in the nine months ended September 30, 1997.

Net interest income was $6,531,000 for the three months ended September 30, 1998, compared to $6,505,000 for the three months ended September 30, 1998. The provision for loan losses in the third quarter of 1998 was $320,000 compared to $0 in the third quarter of 1997. Other income was $1,020,000 for the third quarter of 1998, an increase of $151,000 for 17.4 percent from other income earned in the third quarter of 1997. Included in the $151,000 increase were service charges on deposit accounts, ATM convenience fees, investment and trust management fees, and net gains on security transactions. Total other expenses were $4,736,000 for the third quarter of 1998, an increase of $208,000 or 4.6 percent from other expenses incurred in the third quarter of 1997. Expenditures in the area of technology and operational enhancements attributed to the increase in other expenses in the third quarter of 1998.

For the nine months ended September 30, 1998, net interest income was $19,687,000, an increase of $373,000 or 1.9 percent over the third quarter of 1997. The provision for loan losses for the nine months ended September 30, 1998, was $610,000, $485,000 higher than the first nine months of 1997. Other income for the nine months ended September 30, 1998 was $3,000,000, $389,000 or 14.9 percent over the first months of 1997. Contributing to the $389,000 improvement were increases in ATM convenience fees, service charges on deposit accounts, and investment and trust management fees. For the nine months ended September 30, 1998, other expenses were $14,745,000, an increase of $1,241,000 or 9.2 percent over the third quarter of 1997. The increase in other expenses in 1998 resulted from increases in consulting costs for strategic initiatives, and technology and operational enhancements.

Total assets at September 30, 1998 were $696,958,000, up $64,630,000 or 10.2 percent from the balance at September 30, 1997. Total loans at September 30, 1998 were $371,561,000, up $31,181,000 or 11.4 percent from the balance at September 30, 1997.

The Canajoharie based CNB Financial Corp. is parent to Central National Bank and the Central Asst Management, Inc. The Company's common shares are listed on the national market system of NASDAQ under the symbol "CNBF".