CNB News & Events

CONWAY NATIONAL BANK PROVIDES OUTLET FOR PROPER AMERICAN FLAG RETIREMENT | e-STATEMENTS NOW AVAILABLE | 4TH QUARTER '18 SHAREHOLDER LETTER | TEACH CHILDREN TO SAVE | EMPLOYEE RECOGNITION

CONWAY NATIONAL BANK PROVIDES OUTLET FOR PROPER AMERICAN FLAG RETIREMENT

Conway, SC - As a tribute to our wonderful nation, Conway National Bank is proud to serve as a drop-off location for those individuals wishing to retire their American flag. When the flag becomes worn, torn, faded or badly soiled, it is time to replace it with a new one, and the old one should be retired with all the dignity and respect befitting our nation's flag.

The U.S. Flag Code states, "The flag, when it is in such condition that it is no longer a fitting emblem for display, should be destroyed in a dignified way, preferably by burning."

CNB makes these flags readily available to local patriotic organizations that will ensure proper retirement is carried out.

While the ceremony for flag retirement varies by organization, these emotional ceremonies, also known as "final honors", are performed with precision and care.

Surplus flags that are not retired in the above mentioned manner are cremated with the dignity so richly deserved.

"It is both an honor and privilege to have a hand in something as sacred to our country as retiring the American flag," says Jennings Duncan, President and CEO of CNB. "We have offered the service of being a drop-off location for years, and it is something we will continue to offer for years to come."

Flags can be dropped off at any of CNB's fifteen (15) locations, Monday - Thursday, 9am - 5pm, and Friday, 9am - 6pm. For physical addresses for each of CNB's locations, please visit our locations page.


__________________________________________________

e-STATEMENTS AVAILABLE

CNB e-Statements are online bank statements that look exactly like your mailed paper statements. They are a safe, convenient way to view, print, or download your account statements from our Online Banking website. We can alert you when your statements are ready and it's FREE. To find out how you can sign up for this service, visit one of our 15 offices today.


__________________________________________________

TO OUR SHAREHOLDERS AND FRIENDS:

The U.S. economy continues to grow at a healthy pace, with inflation approximating the Federal Reserve's target of 2.0% and unemployment rates at or below 4%. According to the Bureau of Economic Analysis, in its initial estimate, the U.S. national real gross domestic product (GDP) increased 2.9%, compared to an increase of 2.2% in 2017. Growth in real GDP for 2018 primarily reflects increases in personal consumption expenditures, nonresidential fixed investment, exports, federal government spending, private inventory investment, and state and local government spending, partly offset by decreased residential fixed investment and increased imports. Locally, total real estate transactions increased 1.3% for 2018, at 18,439, as compared to 2017, at 18,211.

The Company's net income for the year ended December 31, 2018 totaled $12,790,000, an increase of 50.1% from $8,522,000 for 2017, for a return on average assets of 1.09% and a return on average equity of 11.45% as compared to .76% and 7.84%, respectively, for 2017. On a per share basis, earnings increased 51.2% to $7.97 for 2018, as compared to $5.27 for 2017.

Total assets increased to $1,187.3 million at December 31, 2018, an increase of 3.5% from $1,146.9 million at December 31, 2017; and capital stood at $115.1 million at December 31, 2018, compared to $107.4 million at December 31, 2017, up 7.2%. Total deposits were $950.7 million at December 31, 2018, an increase of 2.8% from $925.1 million at December 31, 2017. Repurchase agreements increased to $112.6 million at December 31, 2018, an increase of 5.0% from $107.2 million at December 31, 2017. Loans totaled $501.6 million at December 31, 2018, an increase of 2.8% from December 31, 2017; and investment securities were $591.0 million, an increase of 2.1% from December 31, 2017.

Net income for the year ended December 31, 2018 of $12,790,000 is primarily the result of the Bank's net interest income. Net interest income increased 8.9% to $35,637,000 for 2018 from $32,716,000 for 2017. Other factors which affect earnings include the provision for loan losses, noninterest expense, noninterest income, and income taxes. The provision for loan losses for 2018 was $496,000. There was no provision for loan losses required for the year ended 2017. The allowance for loan losses, as a percentage of net loans, stood at 1.25% at December 31, 2018 and 2017. Noninterest expense increased 2.8% for 2018 to $27,678,000 as compared to $26,924,000 for 2017; noninterest income increased slightly, 0.4%, for 2018 to $9,041,000 from $9,006,000 for 2017; and income taxes related to continuing operations decreased 24.0% to $3,714,000 for 2018 from $4,887,000 for 2017. Total income taxes decreased 40.8% for 2018, as the Company did not incur, in 2018, additional tax adjustments related to the enactment of the Tax Cuts and Jobs Act of 2017. The increase in noninterest expense was primarily due to an increase in salaries and employee benefits, increased occupancy expense, and increased costs associated with the operation of other real estate owned. These increases were partly offset through lower examination and professional fees, FDIC deposit insurance assessments, and other operating expenses. The increase in salaries and employee benefits reflects increased salaries and associated taxes, 3.7%, and increased employee benefits, including health care costs, 6.5%. Noninterest income increased due to increased service charge income on deposit accounts, partly offset by a small loss on a sale of investment securities.

Conway National continues to grow and maintains a substantial financial position. Net income has recovered to historical industry norms, and we look forward to continued prosperity in 2019. Conway National remains dedicated to its conservative banking practices; and, as always, we are very appreciative of your continued support. We look forward to the future and continuing to build your bank steeped in our traditions of exceptional customer service, trust, and dedication to all of the communities we serve.

W. Jennings Duncan, President
CNB Corporation and The Conway National Bank


__________________________________________________

CNB Educates Children on the Value of Saving

Our current economic times serve as a great reminder of how important it is to teach our young children the value of saving. Conway National Bank is proud, once again, to partner with the American Bankers Association by participating in their annual Teach Children To Save Day. This event brings students and bankers together to increase savings education. Since it was started by the ABA Education Foundation in 1997, more than 60,000 bankers have reached some 2.8 million young people.

CNB has participated in this event several years and has had the privilege of reaching thousands of second graders throughout their service area in Horry County and the Waccamaw Neck area of Georgetown County. While the national program focuses on children of all ages, CNB felt if you could teach them early enough, it would become a lifelong lesson. "CNB firmly believes that teaching children about money and savings is a crucial part of providing our youth with a superior education," says Jennings Duncan, President and CEO of CNB. "Children are typically fascinated by money and enjoy spending. That's why CNB has joined the nationwide effort to help educate children on these issues."

While this year's Teach Children to Save Day was April 21, CNB will implement its program May-June to accommodate the school system's academic calendar and statewide testing. Spreading it over two months rather than just one day also allows the Bank to reach a lot more children. The 45-minute program is conducted by several bank representatives and includes games and activities allowing students to apply the concepts of saving money. "Financial literacy is critical to personal and professional success. Money is not just a resource that you work for; it is a resource that should work for you. CNB has taken a leadership role in helping educate children about financial responsibility. It is just another example that shows they are invested in our children and in our community for the long haul." says Teal Britton, Horry County Public Information Officer. At the end of the program, each student receives a CNB piggy bank and a $5.00 savings certificate, which they can deposit in their previously opened or new CNB savings account. "These children are our future. Everything we do for them today helps secure a better tomorrow," says Duncan. "We are pleased to offer this program, and are encouraged by the enormous support we receive from our community educators. Without their support, none of this would be possible."

Plans are already underway for this year's program, and schedules are being set with the schools. If you have not participated in the past, but would like a visit from CNB, call Marcie Shannon, Banking Service Representative, at 488-8310.

In addition to the Teach Children to Save program, CNB works with high school students in the Fall with a Get Smart About Credit program.


__________________________________________________

EMPLOYEE RECOGNITION:

Lora W. Chitwood Promoted to Banking Officer
Conway, SC - The Conway National Bank has promoted Lora W. Chitwood to Banking Officer, CNB officials have announced.

She is the Human Resources Assistant at the Operations and Administration Center in Conway. She is a graduate of Aynor High School and Horry-Georgetown Technical College. She lives in Galivants Ferry with her husband, Timmy, and has a son, Luke.


Renee Smith Promoted to Banking Officer
Conway, SC - The Conway National Bank has promoted Renee Smith to Banking Officer, CNB officials have announced.

She is the Branch Operations Manager at the Little River Office. She is a graduate of Conway High School and lives in Tabor City, NC, with her husband, James, and children, Destiny and Michelle.


Amanda M. Blair Promoted to Banking Officer
Conway, SC - The Conway National Bank has promoted Amanda M. Blair to Banking Officer, CNB officials have announced.

She is the Branch Operations Manager at the Murrells Inlet Office. She lives in Myrtle Beach and has a son, John.


Ginger E. Lee Promoted to Banking Officer
Conway, SC - The Conway National Bank has promoted Ginger E. Lee to Banking Officer, CNB officials have announced.

She is the Computer Operations Manager at the Operations and Administration Center in Conway. She is a graduate of Conway High School and Horry-Georgetown Technical College. She lives in Conway with her husband, Timmy, and has two children, Gracie and Trey.


Lisa B Thompkins Promoted to Banking Officer
Conway, SC - The Conway National Bank has promoted Lisa B. Thompkins to Banking Officer, CNB officials have announced.

She is the Customer Service Manager at the Conway Banking Office. She lives in Conway with her husband Keith, and has two sons, Britt and Bradley. She is a graduate of Conway High School and The American Institute of Banking. She is a board member of Conway Downtown Alive.


Mary S. Harrelson Promoted to Bookkeeping Department Manager
Conway, SC - The Conway National Bank has promoted Mary S. Harrelson to Bookkeeping Department Manager, CNB officials have announced.

She is the Bookkeeping Department Manager at the Operations and Administration Center in Conway. She lives in Conway with her husband, Gary, and has two children, Jarrett and Leah. She is a member of White Savannah FWB Church.


Kristine G. Hucks Promoted to Branch Operations Manager
Conway, SC - The Conway National Bank has promoted Kristine G. Hucks to Branch Operations Manager, CNB officials have announced.

She is a graduate of West Florence High School and Horry-Georgetown Technical College. She is a Teller and Branch Operations Manager at the Main Street in Conway. She lives in Conway with her husband, Jarred, and has a daughter, Gracie.


Karen R. Martin Promoted to Customer Service Specialist
Conway, SC - Conway, SC- The Conway National Bank has promoted Karen R. Martin to Customer Service Specialist, CNB officials have announced.

A native of Hillsville, VA., she is a Customer Service Specialist at the Myrtle Beach Office. She is a graduate of Carroll County High School, The American institute of Banking, and attended Wytheville Community College. She lives in Myrtle Beach with her husband, Stan, and has four children, Ryne, Ginny, Hayley, Matthew, and Brandon.


Alicia S. Todd Promoted to Credit Card Merchant Sales Manager
Conway, SC - The Conway National Bank has promoted Alicia S. Todd to Credit Card Merchant Sales Manager, CNB officials have announced.

She is a graduate of Conway High School and Winthrop University. She lives in Conway and has a daughter, Hope. She is the Credit Card Merchant Sales Manager at the Operations and Administration Center in Conway.


Adrienne W. Harrelson Promoted to Investments/Accounting/Accounts Payable Specialist
Conway, SC - The Conway National Bank has promoted Adrienne W. Harrelson to Investments/Accounting/Accounts Payable Specialist, CNB officials have announced.

She lives in Aynor with her husband, Chuck, and has two children, Lander and Meredith. She works at the Operations and Administration Center in Conway.


Mary Francis Stalnaker Promoted to Customer Service Representative
Conway, SC - The Conway National Bank has promoted Mary Francis Stalnaker to Customer Service Representative, CNB officials have announced.

A native of Surfside Beach, she is a graduate of St. James High School, and Johnson and Wales University. She is a Customer Service Representative at the Pawleys Island Office, and lives in Surfside Beach.


Melanie Green Promoted to Customer Service Specialist
Conway, SC - The Conway National Bank has promoted Melanie Green to Customer Service Specialist, CNB officials have announced.

She is a graduate of Waccamaw High School and The Georgia Institute of Technology. She is a Customer Service Representative at the Red Hill Office. She lives in Myrtle Beach with her husband, Royce, and has two children, Will and Tucker. She is a member of the Grand Strand Master's Swim Team and the Pawleys Island Flute Choir.


Ashley Graham Promoted to Mortgage Loan Originator II
Conway, SC - The Conway National Bank has promoted Ashley R. Graham to Mortgage Loan Originator II, CNB officials have announced.

She is a graduate of Aynor High School and lives in Myrtle Beach. She is a Mortgage Loan Originator at the Conway Banking Office.


The Conway National Bank Honors Sandy Fusco
Conway, SC - The Conway National Bank honors Sandy Fusco for twenty years of continued service to the bank, CNB officials have announced.

She is a graduate of Waccamaw High School and Coastal Carolina University. She is a Customer Service Representative at the Murrells Inlet Office. She lives in Murrells Inlet and has two sons, Andrew and Alex. She volunteers with Boy Scout Troop 396.


The Conway National Bank Honors Janet Carter
Conway, SC - The Conway National Bank honors Janet Carter for thirty-five years of continued service to the bank, CNB officials have announced.

She is a graduate of Conway High School and the South Carolina Banker's School. She is a Loan Officer and Assistant Vice President at the North Conway Office. She lives in Conway with her husband, Terry, and has two children and three grandchildren. She volunteers with the Conway Area Chamber of Commerce and the Waccamaw Youth Center.