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Previous: CROWN ANDERSEN INC, 10-Q, 1998-05-12 |
Next: DIVERSIFIED CORPORATE RESOURCES INC, 8-A12B, 1998-05-12 |
<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
Commission file # 0-28388
CNB CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 38-2662386
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
303 North Main Street, Cheboygan, MI 49721
(Address of principal executive offices, including Zip Code)
(616) 627-7111
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was
required to file such reports), and (2) has been
subject to such filing requirements for the past
90 days.
Yes (X) No ( )
As of May 8, 1998 there were 1,025,984 shares of the issuer's
common stock outstanding.
<PAGE> 2
PART I - FINANCIAL INFORMATION
ITEM 1- FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS (in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-------------- ----------------
ASSETS (unaudited)
<S> <C> <C>
Cash and due from banks $ 9,271 $ 6,004
Federal funds sold 5,550 13,300
-------------- ----------------
Total cash and cash equivalents 14,821 19,304
Interest-earning deposits 1,000 1,000
Securities available for sale 25,022 19,162
Securities held to maturity(market value of
$ 40,815 in 1998 and $ 42,718 in 1997) 40,539 42,483
Other securities 716 716
Loans, net 103,118 101,797
Premises and equipment, net 2,627 2,686
Other assets 3,747 3,674
-------------- ----------------
Total assets $ 191,590 $ 190,822
============== ================
LIABILITIES
Deposits
Non-interest bearing $ 21,451 $ 23,769
Interest-bearing 149,539 146,557
-------------- ----------------
Total deposits 170,990 170,326
Other liabilities 2,013 2,351
-------------- ----------------
Total liabilities 173,003 172,677
-------------- ----------------
SHAREHOLDERS' EQUITY
Common stock, $2.50 par value, 2,000,000
shares authorized, shares outstanding
3/31/98-1,025,984; 12/31/97-977,289 2,564 2,443
Additional paid-in capital 8,554 6,583
Retained earnings 7,408 9,066
Unrealized gains(losses) on securities
available for sale, net of tax 61 53
-------------- ----------------
Total shareholders' equity 18,587 18,145
-------------- ----------------
Total liabilities and shareholders' equity $ 191,590 $ 190,822
============== ================
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 3
CONSOLIDATED STATEMENTS OF INCOME(in thousands)
- ----------------------------------------------------------------------
<TABLE>
<CAPTION>
Year to Date March 31,
---------------------------------------------
1998 1997
-------------- ----------------
INTEREST INCOME (unaudited)
<S> <C> <C>
Loans, including fees $ 2,412 $ 2,248
Securities
Taxable 814 786
Tax-exempt 108 98
Federal funds sold 178 72
-------------- ----------------
Total interest income 3,512 3,204
-------------- ----------------
INTEREST EXPENSE ON DEPOSITS 1,620 1,409
-------------- ----------------
NET INTEREST INCOME 1,892 1,795
Provision for loan losses 25 25
-------------- ----------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 1,867 1,770
-------------- ----------------
NON-INTEREST INCOME
Service charges and fees 196 174
Loan sales and servicing fees 47 32
Other income 55 50
-------------- ----------------
Total non-interest income 298 256
-------------- ----------------
NON-INTEREST EXPENSES
Salary and employee benefits 649 696
Occupancy 153 149
Supplies 51 44
Other expenses 224 221
-------------- ----------------
Total non-interest expenses 1,077 1,110
-------------- ----------------
INCOME BEFORE INCOME TAXES 1,088 916
Income tax expense 298 276
-------------- ----------------
NET INCOME $ 790 $ 640
============== ================
Other comprehensive income, net of tax:
Change in unrealized gains (loss) on
securities 8 (13)
-------------- ----------------
Comprehensive income $ 798 $ 627
============== ================
Return on average assets (annualized) 1.66% 1.49%
Return on average equity (annualized) 17.05% 14.78%
Basic earnings per share 0.77 0.63
Diluted earnings per share 0.77 0.63
</TABLE>
All per share statistics have been retroactively adjusted to reflect the 5%
stock dividends on May 20, 1997 and February 20, 1998. See accompanying notes
to consolidated financial statements.
<PAGE> 4
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY(in thousands)
- --------------------------------------------------------------------------------
(unaudited)
<TABLE>
<CAPTION>
Unrealized
Gains(Losses)
On Securities
Available for
Common Capital Retained Sale, Net of
Stock Surplus Earnings Tax Total
----- ------- -------- ------------- -----
<S> <C> <C> <C> <C> <C>
Balance-January 1, 1997 $ 2,327 $ 4,979 $ 9,749 $ (2) $ 17,053
Net Income, 1997 2,880 2,880
Cash dividends $ 1.79 per share(a) (1,841) (1,841)
5% stock dividend 116 1,599 (1,722) (7)
Shares issued under stock
plan 5 5
Net change in unrealized
gains (losses) on securities
available for sale, net of tax 55 55
-----------------------------------------------------------------------------
Balance-December 31, 1997 2,443 6,583 9,066 53 18,145
Net Income YTD 1998 790 790
Cash dividends $ .35 per share (359) (359)
5% stock dividend 121 1,968 (2,089)
Shares issued under stock
plan 3 3
Net change in unrealized
gain (loss) on securities
available for sale 8 8
-----------------------------------------------------------------------------
Balance-March 31, 1998 $ 2,564 $ 8,554 $ 7,408 $ 61 $ 18,587
=============================================================================
</TABLE>
(a) All per share statistics have been retroactively adjusted to reflect the 5%
stock dividends on May 20, 1997 and February 20, 1998.
See accompanying notes to consolidated financial statements.
<PAGE> 5
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three months ended March 31,
------------------------------------
1998 1997
-------- --------
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Income $ 790 $ 640
Adjustments to reconcile net income to net cash
from operating activities
Depreciation 65 65
Accretion and amortization of investment securities, net 7 45
Provision for loan losses 25 25
Loans originated for sale (3,295) (1,028)
Proceeds from sales of loans originated for sale 3,296 1,030
Gain on sales of loans (1) (2)
(Increase)decrease in other assets (77) (166)
Increase (decrease) in other liabilities 134 71
-------- --------
Total adjustments 154 40
-------- --------
Net cash from operating activities 944 680
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in interest-earning deposits
Proceeds from maturities of securities available for sale 1,139 1,000
Purchase of securities available for sale (6,999) (1,038)
Proceeds from maturites of securities held to maturity 5,164 4,305
Purchase of securities held to maturity (3,214) (1,250)
Purchase of other securities
Net increase in portfolio loans (1,346) (1,837)
Premises and equipment expenditures (6) (1)
-------- --------
Net cash from investing activities (5,262) 1,179
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits 663 (790)
Dividends paid (831) (792)
Proceeds from exercise of stock options 3
-------- --------
Net cash from financing activities (165) (1,582)
Net change in cash and cash equivalents (4,483) 277
Cash and cash equivalents at beginning of year 19,304 10,104
-------- --------
Cash and cash equivalents at end of period $ 14,821 $ 10,381
======== ========
Cash paid during the period for
Interest $ 1,593 $ 1,405
Income taxes $ 597 $ 507
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 6
Notes to Financial Statements
Note 1-Basis of Presentation
The consolidated financial statements include the accounts of CNB Corporation
and its wholly-owned subsidiary, Citizens National Bank of Cheboygan, after
elimination of significant inter-company transactions and accounts. The
statements have been prepared by management without audit by independent
certified public accountants. However, these statements reflect all adjustments
(consisting of normal recurring accruals) and disclosures which are, in the
opinion of management, necessary for a fair presentation of the results for the
interim periods presented and should be read in conjuction with the notes to the
financial statements included in the CNB Corporation's Form 10-K for the year
ended December 31, 1997.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to the rules and regulations of the
Securities and Exchange Commission.
Because the results of operations are so closely related to and responsive to
changes in economic conditions, the results for any interim period are not
necessarily indicative of the results that can be expected for the entire year.
Note-2 Earnings Per Share
Basic earnings per share is calculated solely on weighted-average common shares
outstanding. Diluted earnings per share will reflect the potential dilution of
stock options and other common stock equivalents. All prior calculations will be
restated to be comparable to the new methods.
<PAGE> 7
ITEM 2-MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This discussion provides information about the consolidated financial condition
and results of operations of CNB Corporation and its subsidiary, Citizens
National Bank of Cheboygan ("Bank") for the three month period ending March 31,
1998.
FINANCIAL CONDITION
CNB Corporation's 1998 first quarter earnings were $ 790,000, a 23.4% increase
over 1997 first quarter results. Earnings per share increased from $ 0.62 per
share in 1997 to $ 0.77 in 1998. The return on assets was 1.66% for the quarter
versus 1.49% in 1997. The return on equity was 17.05% compared to 14.78% for the
same period last year.
First quarter net interest income was $ 1.9 million, a 5.6% increase from the $
1.8 million earned in the same period last year. Increases in the volume of
interest-earning assets as well as interest-bearing deposits and an increase in
the rate of interest-bearing deposits from 1997 accounts for the decrease in the
net interest margin of 22 basis points.
Non-interest income increased 16.4% over the same period last year while
non-interest expense decreased 3.0% for the quarter to quarter comparison. There
was no significant change in the income tax position of the Company during the
first quarter of 1998 with the increase corresponding to an increase in pre-tax
income.
SECURITIES
Securities increased $ 3.9 million or 6.3% since December 31, 1997. The
available for sale portfolio increased to 38.2% up from 31.1% at year-end.
The amortized cost and fair values of securities at March 31, were as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
------------------------------------------------------------
<S> <C> <C> <C> <C>
1998
U.S. Government and agency $ 22,072 $ 58 $ (9) $ 22,121
State and municipal 2,856 45 2,901
-------- ---- ----- --------
$ 24,928 $103 $ (9) $ 25,022
======== ==== ===== ========
1997
U.S. Government and agency $ 6,991 $ 6 $ (31) $ 6,966
State and municipal 1,038 2 1,040
------- ---- ----- --------
$ 8,029 $ 8 $ (31) $ 8,006
======= ==== ===== ========
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
------------------------------------------------------------
<S> <C> <C> <C> <C>
1998
U.S. Government and agency $ 24,537 $ 133 $ (13) $ 24,657
State and municipal 16,002 162 (6) 16,158
-------- ----- ------ --------
$ 40,539 $ 295 $ (19) $ 40,815
======== ===== ====== ========
1997
U.S. Government and agency $ 38,519 $ 100 $ (122) $ 38,497
State and municipal 11,462 105 (17) 11,550
-------- ----- ------ --------
$ 49,981 $ 205 $ (139) $ 50,047
======== ===== ====== ========
</TABLE>
The amortized cost and fair value of securities by contractual maturity at March
31, 1998 are shown below, in thousands of dollars.
<TABLE>
<CAPTION>
Available for Sale Held to Maturity
------------------ ----------------
Amortized Fair Amortized Fair
Cost Value Cost Value
--------- ------- -------- --------
<S> <C> <C> <C> <C>
Due in one year or less $ 5,225 $ 5,232 $ 20,293 $ 20,320
Due after one year through five years 18,343 18,396 18,805 18,964
Due after five years through ten years 1,360 1,394 948 983
Due after ten years 493 548
------- -------- -------- --------
Total $24,928 $ 25,022 $ 40,539 $ 40,815
======= ======== ======== ========
</TABLE>
LOANS
Loans at March 31, 1998 increased $ 1.3 million or 1.3% from December 31, 1997.
Residential real estate mortgages increased for the period by $ 695,000 or 1.1%
as the Bank continues to retain, rather than sell on the secondary market,
residential mortgages of 15 years or less. As the yield on these loans is
greater than the yield available on the types of securities the Bank invests in,
this increase will help maintain the Bank's net interest margin.
The table below shows total loans outstanding by type, in thousands of dollars,
at March 31, 1998 and December 31, 1997, and their percentage of the total loan
portfolio. All loans are domestic. A quarterly review of loan concentrations at
March 31, 1998 indicates the pattern of loans in the portfolio has not changed.
There is no individual industry with more than a 10% concentration. However, all
tourism related businesses, when combined, total 11.8% of total loans.
<PAGE> 9
<TABLE>
<CAPTION>
March 31, 1998 December 31, 1997
------------------------- ------------------------
Portfolio loans: Balance % of total Balance % of total
------- ---------- ------- ----------
<S> <C> <C> <C> <C>
Residential real estate $ 61,449 58.69% $ 60,754 58.78%
Consumer 10,089 9.64% 10,009 9.68%
Commercial real estate 21,567 20.60% 20,899 20.22%
Commercial 11,589 11.07% 11,705 11.32%
-------------------------------------------------------
104,694 100.00% 103,367 100.00%
Deferred loan origination fees, net (118) (128)
Allowance for loan losses (1,458) (1,442)
--------- ---------
$103,118 $101,797
========= =========
</TABLE>
ALLOWANCE FOR LOAN LOSSES
An analysis of the allowance for loan losses, in thousands of dollars, for the
three months ended March 31, follows:
<TABLE>
<CAPTION>
1998 1997
------- -------
<S> <C> <C>
Beginning balance $ 1,442 $ 1,361
Provision for loan losses 25 25
Charge-offs (13) (1)
Recoveries 4 9
------- -------
Ending balance $ 1,458 $ 1,394
======= =======
</TABLE>
The Company had no impaired loans for 1998 and 1997.
CREDIT QUALITY
The Company maintains a high level of asset quality as a result of actively
managing delinquencies, nonperforming assets and potential problem loans. The
Company performs an ongoing review of all large credits to watch for any
deterioration in quality. Nonperforming loans are comprised of: (1) loans
accounted for on a nonaccrual basis; (2) loans contractually past due 90 days or
more as to interest or principal payments (but not included in nonaccrual loans
in (1) above); and (3) other loans whose terms have been renegotiated to provide
a reduction or deferral of interest or principal because of a deterioration in
the financial position of the borrower (exclusive of loans in (1) or (2) above).
The aggregate of nonperforming loans is shown in the table below.
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------- ------------
(in thousands)
<S> <C> <C>
Nonaccrual $ 13 $ 21
Loans past due 90 days or more 124 78
Troubled debt restructurings
----- ----
Total nonperforming loans $ 137 $ 99
===== ====
Percent of total loans 0.13% 0.10%
</TABLE>
<PAGE> 10
DEPOSITS
Typically the Company's deposit activity is slow in the first quarter of the
year because seasonal businesses are closed. Deposits at March 31, 1998
increased $ 664,000 compared to December 31, 1997.
LIQUIDITY AND FUNDS MANAGEMENT
For the first quarter of 1998, the Company's net income combined with net cash
from operating activities provided $ 944,000 in liquidity. Loan growth increased
$ 1.3 million for the first quarter. The Company maintains a steady schedule of
investment securities maturing each month to help meet with the anticipated
liquidity needs. The Company does not anticipate any significant changes in its
seasonal pattern.
FUNDS MANAGEMENT
The following chart shows the Company's interest rate sensitivity as of March
31, 1998 in thousands:
<TABLE>
<CAPTION>
Up to 4 to 12 1 to 5 Over
3 Months Months Years 5 Years Total
-------- ------ ------ ------- -----
<S> <C> <C> <C> <C> <C>
Federal funds sold $ 5,550 $ - $ - $ - $ 5,550
Interest-earning deposits - 1,000 - - 1,000
Taxable investment
securities 8,900 16,234 31,142 - 56,276
Non-taxable investment
securities 2,175 1,302 3,661 2,147 9,285
Loans 31,728 27,098 32,549 13,201 104,576
------- ------- -------- ------- --------
Total rate senitive
assets $48,353 $45,634 $67,352 $15,348 $176,687
========
Interest-bearing demand
deposits $ 1,326 $ 3,574 $ 8,340 $ - $ 13,240
Savings 5,613 5,050 11,784 - 22,447
Money market savings 23,837 6,905 16,115 - 46,857
Time deposits 21,434 25,185 20,376 - 66,995
------- ------- ------- ------- --------
Total rate sensitive
liabilities 52,210 40,714 56,615 - $149,539
========
Gap $(3,857) $ 4,920 $10,737 $15,348
------- ------- ------- -------
Cumalative gap $(3,857) $ 1,063 $11,800 $27,148
======= ======= ======= =======
Cumalative ratio 92.61% 112.08%
======= =======
</TABLE>
<PAGE> 11
Management reviews the rate and term of any callable securities in the
portfolio. The probability of call is used as the basis for determining a
repricing date. Management believes that the difference between rate sensitive
assets and rate sensitive liabilities ("Gap") overstates true interest
sensitivity. Interest exposure is not as significant as expressed in the above
schedule. Even though the Company has the contractual right to make a change in
certain deposit rates, given its competitive position, management believes that
liabilities do not need to be repriced as soon as rates begin to move.
CAPITAL RESOURCES
The capital ratios of the Company and Bank exceed the regulatory guidelines for
well capitalized institutions. The following table shows the Company's capital
ratios and ratio calculations for the three months ended March 31. Dollars are
shown in millions.
<TABLE>
<CAPTION>
Minimum Required
To Be Well
Minimum Required Capitalized Under
For Capital Prompt Corrective
Actual Adequacy Purposes Action Regulations
---------------------------------------------------------------------------------------------
Amount Ratio Amount Ratio Amount Ratio
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
1998
Total capital (to risk weighted assets)
Consolidated $ 19.8 18.8% $ 8.4 8.0% $ 10.5 10.0%
Bank 19.9 18.3% 8.7 8.0% 10.8 10.0%
Tier 1 capital (to risk weighted assets)
Consolidated 18.5 17.6% 4.2 4.0% 6.3 6.0%
Bank 18.5 17.1% 4.3 4.0% 6.5 6.0%
Tier 1 capital (to average assets)
Consolidated 18.5 9.8% 7.6 4.0% 9.5 5.0%
Bank 18.5 9.7% 7.6 4.0% 9.5 5.0%
1997
Total capital (to risk weighted assets)
Consolidated $ 18.5 19.6% $ 7.6 8.0% $ 9.5 10.0%
Bank 18.5 19.6% 7.6 8.0% 9.5 10.0%
Tier 1 capital (to risk weighted assets)
Consolidated 17.3 18.3% 3.8 4.0% 5.7 6.0%
Bank 17.3 18.3% 3.8 4.0% 5.7 6.0%
Tier 1 capital (to average assets)
Consolidated 17.3 10.1% 6.9 4.0% 8.6 5.0%
Bank 17.3 10.1% 6.9 4.0% 8.6 5.0%
</TABLE>
<PAGE> 12
NET INTEREST INCOME
The following table shows the daily average Consolidated Balance Sheet, revenue
on earning assets (on a pre-tax basis), expense on interest-bearing liabilities,
and the annualized effective rate or yield for the periods ending March 31:
<TABLE>
<CAPTION>
Yield Analysis of Consolidated Average Assets and Liabilities
(In thousands)
Average 1998 Yield/ Average 1997 Yield/
Balance Interest Rate Balance Interest Rate
------- -------- ---- ------- -------- ----
<S> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
Interest-earning
deposits $ 1,000 16 6.40% $ - -
Federal funds sold 12,629 178 5.64% 5,026 65 5.17%
Total securities 62,589 906 5.79% 59,345 891 6.01%
Loans 103,049 2,412 9.36% 97,488 2,248 9.22%
--------- ----- --------- --------
Total interest-
earning assets 179,267 3,512 7.84% $ 161,859 3,204 7.92%
----- ---- ------- ----
Cash and due from
banks 5,768 5,347
Premises and
equipment, net 2,659 2,647
Other assets 2,186 2,381
--------- ----------
Total $ 189,880 $ 172,234
========= ==========
Interest-bearing liabilities:
Interest-bearing
demand deposits $ 14,226 84 2.36% 13,898 82 2.36%
Savings 66,714 631 3.78% 61,790 568 3.68%
Time deposits 67,527 905 5.36% 57,705 759 5.26%
--------- ------ --------- -------
Total interest-
bearing deposits 148,467 1,620 4.36% 133,393 1,409 4.23%
----- ----- ------- -----
Non-interest
bearing deposits 21,084 19,893
Other liabilities 1,793 1,623
Shareholders' equity 18,536 17,325
--------- ---------
Total $ 189,880 $ 172,234
========= =========
Net interest income $ 1,892 $ 1,795
======= =======
Net interest spread 3.48% 3.69%
==== ====
Net yield on interest-
earning assets 4.22% 4.44%
==== ====
</TABLE>
<PAGE> 13
The table below shows the effect of volume and rate changes on net interest
income on a pre-tax basis.
<TABLE>
<CAPTION>
1998 Compared to 1997 1997 Compared to 1996
--------------------- ---------------------
Volume Rate Net Volume Rate Net
------ ---- --- ------ ---- ---
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
Interest-earning deposits $ 16 $ - $ 16 $ (16) $ - $ (16)
Federal funds sold 107 6 113 (41) (10) (51)
Total securities 48 (33) 15 (7) 39 32
Loans, net 130 34 164 207 (123) 84
------------------------------------------------------------------------------------------
Total interest-earning
assets $ 301 $ 7 $ 308 $ 143 $ (94) $ 49
Interest-bearing demand $ 2 $ - $ 2 $ (1) $ (1) $ (2)
Savings deposits 390 72 462 (264) (99) (363)
Time deposits (368) 115 (253) 460 (91) 369
------------------------------------------------------------------------------------------
Total interest-bearing
deposits $ 24 $ 187 $ 211 $ 195 $ (191) $ 4
------------------------------------------------------------------------------------------
Net change in net
interest income(a) $ 277 $ (180) $ 97 $ (52) $ 97 $ 45
==========================================================================================
</TABLE>
(a) The net change in interest due to both rate and volume has been allocated
to volume and rate changes in proportion to the relationship of the
absolute dollar amounts of the change in each.
YEAR 2000 ISSUE
This global issue poses a threat to businesses everywhere. The problems, which
will evidence themselves in the year 2000, derive from a two digit limitation in
source programming for calendar years. The Company has assembled an internal
technology committee to thoroughly identify and correct any potential problems
in this area well ahead of the year 2000.
ACCOUNTING CHANGES
In 1998, the FASB issued SFAS No. 130, "Reporting Comprehensive Income", which
requires that financial statements report comprehensive income in addition to
net income. SFAS No. 130 is effective for fiscal years beginning after December
15, 1997, beginning with the first interim period.
<PAGE> 14
PART II- OTHER INFORMATION
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 6 - EXHIBITS AND REPORTS OF FORM 8-K
a.) None
b.) None
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CNB Corporation
-------------------------------
(Registrant)
Date: May 8, 1998 /s/ Robert E. Churchill
----------------- -------------------------------------------
Robert E. Churchill
President and Chief Executive Officer
Date: May 8, 1998 /s/ Susan A. Eno
----------------- -------------------------------------------
Susan A. Eno
Senior Vice President
<PAGE> 16
Exhibit Index
Exhibit
Number Description
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 9,271
<INT-BEARING-DEPOSITS> 1,000
<FED-FUNDS-SOLD> 5,550
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 25,022
<INVESTMENTS-CARRYING> 40,539
<INVESTMENTS-MARKET> 40,815
<LOANS> 104,576
<ALLOWANCE> 1,458
<TOTAL-ASSETS> 191,590
<DEPOSITS> 170,990
<SHORT-TERM> 0
<LIABILITIES-OTHER> 2,013
<LONG-TERM> 0
0
0
<COMMON> 2,564
<OTHER-SE> 16,023
<TOTAL-LIABILITIES-AND-EQUITY> 191,590
<INTEREST-LOAN> 2,412
<INTEREST-INVEST> 922
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 3,512
<INTEREST-DEPOSIT> 1,620
<INTEREST-EXPENSE> 1,620
<INTEREST-INCOME-NET> 1,892
<LOAN-LOSSES> 25
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,077
<INCOME-PRETAX> 1,088
<INCOME-PRE-EXTRAORDINARY> 1,088
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 790
<EPS-PRIMARY> .77
<EPS-DILUTED> .77
<YIELD-ACTUAL> 4.22
<LOANS-NON> 13
<LOANS-PAST> 124
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,442
<CHARGE-OFFS> 13
<RECOVERIES> 4
<ALLOWANCE-CLOSE> 25
<ALLOWANCE-DOMESTIC> 1,458
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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