CNB News & Events

2010 TRAVEL & ADVENTURE FILM SERIES | CNB TWO-FOR-ONE STOCK SPLIT | CNB EARNS 5-STAR RATING | 3rd QUARTER 09 SHAREHOLDER LETTER | NEW CAROLINA FOREST ATM | SAME DAY BANKING | TEACH CHILDREN TO SAVE | EMPLOYEE RECOGNITION

Conway National Bank Proudly Presents the 2010 Travel & Adventure Film Series

NOTE: New Location – Myrtle Beach High School Auditorium, 3302 Robert Grissom Parkway, Myrtle Beach, SC

* Curtain time for all shows will be 7 pm. For more information, call (843) 248-5721 or (843) 238-2600.

January 7, 2010

"America's Parklands"
Gray Warriner

Soar to the heights of Alaska's Denali. Hike the wild beaches and moss-festooned rainforests of Olympic National Park. Discover the secret life of sea otters along California's coast and explore the spectacular beauty of Lake Powell. Experience the different seasons of Bryce Canyon, grandeur of the Grand Canyon. Discover the cliff dwellings at Mesa Verde. Marvel at America's treasures from the volcanoes of Hawaii to the tip of the Florida Everglades. Gray's award-winning programs have become the official films for several national parks!

January 14, 2010

"Beneath the Jungle…and Beyond" (Mesoamerica)
Dale Johnson

Mesoamerica – approximately 1,000 years before the time of Christ, a consortium of autonomous City/Kingdoms developed and flourished in a region now mapped as southern Mexico, Belize, Guatemala, and Honduras. Today the descendants of those ancient Maya still populate this same region of Central America. In Belize, which is an English speaking Country, they seem to have preserved some sense of still being in the Nineteenth Century as they continue to travel everywhere by horse and buggy or carriage…or walk. In the highlands of Guatemala ancient rituals are still practiced, where chickens are sacrificed, rather than humans, to old Mayan deities. Copan in Honduras was found buried in the jungle in the 1030's. It is a magnificent complex of temples underlain by recently discovered tunnels. The Barrier Reef of the Caribbean, along the eastern shore of Belize, is a contrast to the ancient Mayan world. Modern cities contrast with remote villages, and both are part of this thriving world today.

February 4, 2010

"Egypt's Treasures & Cruising the Nile"
Sue and Clint Denn

The majesty of Egypt has long enticed travelers. The cities of Alexandria and Cairo are both ancient and unique. Cairo, a major city since the time of the pharaohs, and the port city of Alexandria, founded over 2,300 years ago, both hold major fascination for every traveler and lover of history. Some other stops include Mohammed Ali Mosque, the Egyptian Museum, King Tutankhamen's exhibit, Ramses II Statue and Hathor Temple. The Pyramids of Giza, the only remaining member of the Seven Wonders of the World, are the most famous monuments of ancient Egypt. The mysteries surrounding their symbolism, design and purpose have often inspired debate. A symbol of strength and wisdom, the mysterious Great Sphinx presides over the Giza necropolis. Join filmmakers Clint and Sue Denn in a marvelous journey through this fascinating country with friendly people and wonderful accommodations.

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CNB CORPORATION ANNOUNCES TWO-FOR-ONE SPLIT OF CNB'S COMMON STOCK

October 16, 2009. CNB Corporation, the holding company for The Conway National Bank, headquartered in Conway, South Carolina, announced today that its Board of Directors has declared a two-for-one split of the Company's common stock. One additional share of the Company's common stock will be issued for each share owned by each person who was a shareholder of record on October 23, 2009. The distribution will be made on November 5, 2009. Shareholders of record will receive a new stock certificate representing the additional shares distributed to them as a result of the stock split. Existing stock certificates will remain outstanding.

Harold Cushman, Chairman of the Board of CNB Corporation, explained that the Board had approved the split to bring the market price of the Company's common stock more into line with the prices of other community banks.

Contact information: Edward T. Kelaher, Chairman of the Governance Committee of the Board of Directors of CNB Corporation and The Conway National Bank, 843-222-8166.

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CNB Earns 5-Star Rating

New Year, New Banking Concerns, But Not if You Bank at Conway National Bank

January 2009: Conway National Bank, Conway, South Carolina proudly announces it has earned BAUERFINANCIAL, Inc.'s highest 5-Star Superior rating for financial strength and stability. BAUERFINANCIAL has been analyzing the nation's banks for over 25 years and has earned the reputation as "the Nation's Bank Rating Firm", so to garner its highest 5-Star rating is a time-honored badge of distinction. Customers of Conway National Bank can be proud that their bank still shines, even under the watchful eye of the BAUERFINANCIAL microscope. The rating is based on the overall financial picture of the bank and at 5-Stars indicates that Conway National Bank is one of the strongest banks in the nation. This is the 66th consecutive quarter that Conway National Bank has earned this highest honor; only 8% of the nation's banks can claim this distinction.

"This New Year in particular brings with it a whole new set of worries, but where a consumer banks shouldn't be one of them", remarks Karen L. Dorway, president of BAUERFINANCIAL. "Some banks ignored proper loan underwriting standards in recent years and are now paying the price for that decision. But, Conway National Bank is a prime example of a bank that has stuck to traditional, conservative banking strategies, which, in this climate, is exactly what the 'other banks' are returning to. Conway National Bank is a model of banking safety and soundness and its customers can rest assured in that knowledge."

Established in 1903, Conway National Bank has been serving the banking needs of its neighbors and friends for 106 years. It currently operates through 14 conveniently located offices in Horry and Georgetown counties and can also be found on the internet at www.conwaynationalbank.com.

Conway National Bank: "Where ever Life leads you... we'll be there."

BAUERFINANCIAL, INC., Coral Gables, Florida, the nation's leading independent bank rating and research firm, has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983. No institution pays for its rating, nor can it be eluded. Consumers may obtain star-ratings by visiting www.bauerfinancial.com.

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TO OUR SHAREHOLDERS AND FRIENDS:

The U.S. national economy emerged from a state of recession during the third quarter of 2009. The Advance Estimate of the Bureau of Economic Analysis, a division of the U.S. Department of Commerce, indicates that real gross domestic product (GDP) increased at an annual rate of 3.5% for the third quarter of 2009. This increase is an improvement from the .7% decline in real GDP experienced in the second quarter of 2009. The increase reflects increases in consumer spending, increased exports, increased inventory levels, increased spending by the Federal Government, and increased investment in residential real estate. Locally, the troubled real estate sector continued to decline as real estate closings were down approximately 11.0% for the third quarter of 2009 in comparison to the same period for 2008. This is an improvement from the approximate 21.0% decline experienced for the second quarter of 2009 and a 44.0% decline in the first quarter of 2009. The banking industry as well has continued to experience significant difficulties with 95 bank failures occurring in the first nine months of 2009 compared to 14 for the same period in 2008. Despite these difficulties, Conway National maintained a solid financial position and comparatively favorable operating results for the nine-month period ended September 30, 2009.

Net income for the nine months ended September 30, 2009 totaled $4,071,000, down 42.4% from the $7,062,000 earned for the same period in 2008. Although earnings declined for the first nine months of 2009, Conway National performed very well in comparison to our national peer and to the combined operating results of all South Carolina banks. On a per share basis, earnings declined 42.0% from $4.21 in 2008 to $2.44 in 2009, adjusted for the effect of a two-for-one stock split in 2009, representing an annualized return on average assets of .60% and an annualized return on average equity of 6.41% as compared to 1.09% and 11.29%, respectively, for the same period in 2008. The annualized return on average assets for the Bank's national peer group was .32% for the first nine months of 2009, while the combined operating results for all South Carolina banks was a net loss of (.48)% for the same period.

Total assets grew to $912.3 million at September 30, 2009, an increase of 6.9% over September 30, 2008, and capital stood at $88.9 million at September 30, 2009 compared to $86.0 million at September 30, 2008. Total deposits were $686.3 million at September 30, 2009, an increase of .1% from $686.1 million for the previous year. The leveling in deposits primarily represents a shift in customer product preference as large depositors have sought to secure deposits through increased utilization of repurchase agreements, which increased 81.1% from $60.8 million at September 30, 2008 to $110.2 million at September 30, 2009. Loans totaled $586.9 million at September 30, 2009, a decrease of .2% from 2008; and investment securities were $234.7 million, an increase of 18.1% from the prior year.

Net income for the nine months ended September 30, 2009 of $4,071,000 compares favorably to peer and industry performances but is significantly lower than historical returns experienced by the Bank. Bank earnings are primarily the result of the Bank's net interest income, which increased slightly, .6% to $23,902,000 for the nine months ended September 30, 2009 from $23,754,000 for the same period in 2008. Other factors which affect earnings include the provision for possible loan losses, noninterest expense, and noninterest income. The provision for possible loan losses increased significantly, 483.4%, from $1,354,000 for 2008 to $6,547,000 for 2009. The allowance for loan losses, as a percentage of net loans, was increased to 1.55% at September 30, 2009 as compared to 1.17% at September 30, 2008. Noninterest expense increased 1.9% from $17,378,000 to $17,703,000 for the first nine months of 2009 as compared to the nine months of 2008; and noninterest income increased 11.7% from $5,620,000 to $6,278,000 for the same periods, respectively. Noninterest expense increased overall due primarily to increased FDIC insurance premiums, which increased 579.7% from $128,000 for the first nine months of 2008 as compared to $870,000 for the first nine months of 2009. Noninterest income increased due to increased gains on sales of investment securities, partially offset by a decline in service charge income on deposit accounts and decreased other operating income.

With the national and local economies expected to remain subdued through the end of 2009, we anticipate that profitability will remain below historical levels while, at the same time, expect that the Bank will continue to grow, further strengthen, and generally prosper. Although the Bank's credit concerns have been relatively minor in terms of the magnitude of non-performing assets in the industry and local markets, we have appropriately addressed the majority of credit concerns during the first nine months of 2009. Loan losses are expected to level in the fourth quarter of 2009 and begin to trend down sometime during the first half of 2010. However, the Bank will continue to incur significant FDIC insurance premiums through 2012, as the FDIC is now expected to assess the Bank three years of insurance premiums in the form of a prepayment in December 2009.

Although much uncertainty remains about the economic environment and a turnaround in economic activity is difficult to predict, we are confident that your bank will continue to thrive throughout this difficult period. We expect the Bank to perform in the same strong manner, consistent with our history and based in our conservative policies and procedures. At the same time, the Bank is being positioned and prepared to meet future demands and opportunities. In the third quarter of 2009 the Board of Directors considered the market price of CNB Corporation's common stock in light of the significant deterioration in the market prices of the common stock of comparable banks and bank holding companies. The Board's deliberations resulted in the determination of the need for a two-for-one split of CNB Corporation common stock, which was declared early in the fourth quarter and is presently being distributed.

Conway National continues firm and strong, maintaining substantial financial position and profitability above the industry average. Conway National remains steadfast to its conservative and prudent 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

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CNB Announces new ATM location in Carolina Forest

May 18, 2009, Conway, SC – Conway National Bank (CNB) has expanded its service area with a new ATM in the Carolina Forest section of Myrtle Beach. The ATM is located at the corner of River Oaks Drive and Village Center Boulevard near International Drive.

Currently the Bank has 14 office locations throughout Horry County and the Waccamaw Neck area of Georgetown County.

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CONWAY NATIONAL BANK NOW OFFERING SAME DAY BANKING:

June 10, 2008, Conway, S.C. - Conway National Bank (CNB) is offering same day banking for all customers. The service allows all transactions made before 5:00 p.m., Monday - Thursday, and 6:00 p.m. on Friday to be posted that business day.

"CNB is continuously looking at ways to make banking easier and more convenient for our customers," said Jennings Duncan, President and CEO of Conway National Bank. "Same day banking allows us to fulfill customer needs while still providing Horry and Georgetown Counties with the highest level of financial services, quality, dependability, and friendliness that they've come to expect over the years."

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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.

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EMPLOYEE RECOGNITION:

Conway National Bank Honors Janice Simmons

August 14, 2009, Conway, SC- The Conway National Bank has recognized Janice Simmons for forty years of continued service to the bank, CNB officials have announced.

A native of Wilmington, N.C., Simmons is a graduate of Conway High School, American Institute of Banking, South Carolina Bankers School, and East Carolina University Commercial Lending School. She also attended Coastal Carolina University. She is a Vice President and Lender at the Red Hill Office. Simmons is a member of the Rotary Club of Carolina Forest Sunrise, Board member for Friendship Medical, Coastal Carolina Chanticleer Foundation, SCORE, and Past President of Conway Area Chamber of Commerce. She lives is Conway with her husband, Wayne, and has a daughter, Lauren Barker.

Conway National Bank Honors Kendra Jordan

August 14, 2009, Conway, SC- The Conway National Bank has recognized Kendra Jordan for fifteen years of continued service to the bank, CNB officials have announced.

A native of Conway, Jordan is a graduate of Conway High School and attended the American Institute of Banking. She is Internet Banking Specialist at the Operations and Administration Center in Conway. She lives in Conway with her husband Phillip, and is a member of High Point Baptist Church.

Conway National Bank Honors Lee Macklen

August 14, 2009, Conway, SC- The Conway National Bank has recognized Lee Macklen for five years of continued service to the bank, CNB officials have announced.

A native of Horry County, Macklen is a graduate of Aynor High School. She is a teller at the West Conway office and lives in Myrtle Beach with her husband, Jerrett, and has four children.

Conway National Bank Honors Mellonie Doyle

August 14, 2009, Conway, SC- The Conway National Bank has recognized Mellonie Doyle for ten years of continued service to the bank, CNB officials have announced.

A native of Myrtle Beach, Doyle is a graduate of Conway High School and the Avant Guarde College of Cosmetology. She is the Head Teller at CNB's West Conway Office. She lives in Conway and has a son, Mac, who is a sophomore at Wofford College. She is a member of Juniper Bay Baptist Church in Conway.

Conway National Bank Honors Jared Williams

August 14, 2009, Conway, SC- The Conway National Bank has recognized Jared Williams for five years of continued service to the bank, CNB officials have announced.

A native of Longs, Williams is a graduate of North Myrtle Beach High School and Coastal Carolina University. He is a Network Specialist at the Operations and Administration Center in Conway. He lives in Longs with his wife, Heather, and son, Hunter. Williams attends Dogwood Hill Baptist Church.

Conway National Bank Honors Ray Meeks

August 14, 2009, Conway, SC- The Conway National Bank has recognized Ray Meeks for twenty-five years of continued service to the bank, CNB officials have announced.

A native of De Ridder, La., Meeks is a graduate of Kasierslautern High School in Kasierlautern, Germany, and The University of South Carolina. He is Vice President-Main Frame Systems at the Operations and Administration Center in Conway. He lives in Conway with his wife, Lynn, and has two children, Scott and Susan.

Conway National Bank Honors Tim Howell

August 14, 2009, Conway, SC - The Conway National Bank has recognized Tim Howell for twenty-five years of continued service to the bank, CNB officials have announced.

A native of Conway, Howell is a graduate of Conway High School and Coastal Carolina University. He is Vice President and Systems Analyst at the Operations and Administration Center in Conway. He lives in the Pleasant View community with his wife, Cindy, and children, Nadia, Katya, and Isaac. Howell attends Seacoast Vineyard Church.

Conway National Bank Honors Tim Phillips

August 14, 2009, Conway, SC- The Conway National Bank has recognized Tim Phillips for fifteen years of continued service to the bank, CNB officials have announced.

A native of Bennettsville, Phillips is a graduate of Bennettsville High School and Coastal Carolina University. He is an Assistant Vice President and Loan Review Officer at the Operations and Administration Center in Conway. He lives in Conway with his wife, Audrea, and children, Ben and Shelby. Phillips is a Conway Area Schools Advisory Board member, South Conway Elementary School Improvement Council member, Pee Dee Elementary School Improvement Council member, and attends Carolina Forest Community Church.

Conway National Bank Honors Pam Lampley

July 8, 2009, Conway, SC- The Conway National Bank has recognized Pam Lampley for fifteen years of continued service to the bank, CNB officials have announced.

A native of Florence, Lampley is a graduate of Socastee High School and attended Charleston Southern University and Coastal Carolina University. She is a Security Specialist at the Operations and Administration Center in Conway. She lives in Murrells Inlet and is a member of Garden City Baptist Church.

Conway National Bank Honors Jesse Williamson

July 8, 2009, Conway, SC- The Conway National Bank has recognized Jesse Williamson for fifteen years of continued service to the bank, CNB officials have announced.

A native of Ohio, Williamson is a graduate of Socastee High School and attended Horry Georgetown Technical College. She is a senior customer service representative at the Surfside Office. She lives in Socastee with her husband, Wesley, and children, Hunter and Hannah. She is a member of Langston Baptist Church in Conway.

Conway National Bank Honors Lynne Kopp

June 1, 2009, Conway, SC- The Conway National Bank has recognized Lynne Kopp for ten years of continued service to the bank, CNB officials have announced.

A native of Teaneck, NJ, Kopp is a graduate of Dumont High School and attended Bergen Community College. She is head teller at the Surfside office and lives is Murrells Inlet with her husband, Jay, and has two children, Kerri and John. Kopp is an active member of St. Michael's Catholic Church.

Conway National Bank Honors Brandi Watts

June 1, 2009, Conway, SC- The Conway National Bank has recognized Brandi Watts for five years of continued service to the bank, CNB officials have announced.

A native of Myrtle Beach, Watts is a graduate of Socastee High School. She is a teller and assists in customer service at the Myrtle Beach Office.