CNB News & Events

CONWAY NATIONAL BANK PROVIDES OUTLET FOR PROPER AMERICAN FLAG RETIREMENT | e-STATEMENTS NOW AVAILABLE | 3rd QUARTER '11 SHAREHOLDER LETTER | NEW CAROLINA FOREST ATM | 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 delivers the flags to the Boy Scouts of America to ensure proper retirement is carried out. They are one of a select few service organizations permitted to actually retire a flag.

While the ceremony for flag retirement varies by organization, the Boy Scouts offer a carefully choreographed ceremony. These emotional ceremonies, also known as 'final honors', are performed with precision and care. The organization takes this civic duty very seriously and performs the ceremonies under the watchful eye of Scoutmasters and District Executives.

"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 fourteen (14) locations, Monday-Thursday, 9 am - 5 pm, and Friday, 9 am - 6 pm. For physical addresses for each of CNB's locations, please visit our Locations page.

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e-STATEMENTS NOW 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 14 offices today.

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TO OUR SHAREHOLDERS AND FRIENDS:

The U.S. national economic recovery continued through the third quarter of 2011, although at a less than desirable pace. The Bureau of Economic Analysis, a division of the U.S. Department of Commerce, has indicated in its Second Estimate that real gross domestic product (GDP) increased at an annual rate of 2.0% for the third quarter of 2011, up from an annual rate of 1.3% and .4% for the second and first quarters of 2011, respectively. Locally, the real estate sector improved for the third quarter of 2011 with the total number of real estate transactions increasing approximately 14% as compared to the third quarter of 2010. This is an improvement from the approximate 5% and 4% declines experienced for the second and first quarters of 2011, respectively. The banking industry continues to experience significant difficulties, with 74 bank failures occurring nationally in the first nine months of 2011. However, the number of bank failures declined 42% in the first nine months of 2011 from 127 for the same period in 2010.

The Company's net income for the nine months ended September 30, 2011 totaled $792,000, up 283.8% from the net loss of $(431,000) incurred for the nine months ended September 30, 2010, for a return on average assets of .14%. Although the Company continued to experience low profitability for the first nine months of 2011, the Bank performed well in comparison to the same period for 2010 and in comparison to the combined operating results of all South Carolina banks, which posted a combined return on average assets of (.14)% for the same period. On a per share basis, earnings increased 284.6% from $(.26) for the first nine months of 2010 to $.48 for the same period in 2011, representing a return on average assets of .09% and a return on average equity of 1.49% as compared to (.06)% and (.65)%, respectively, for the same period in 2010.

Total assets increased to $945.5 million at September 30, 2011, an increase of .34% from September 30, 2010, and capital stood at $89.1 million at September 30, 2011 compared to $86.4 million at September 30, 2010. Total deposits were $755.4 million at September 30, 2011, an increase of 1.9% from $741.1 million at September 30, 2010. The Bank experienced a decrease in repurchase agreements, which decreased 8.2% from $103.6 million at September 30, 2010 to $95.1 million at September 30, 2011. This decrease is attributable to the implementation of a new wholesale funding policy during 2011. Loans totaled $494.0 million at September 30, 2011, a decrease of 9.9% from September 30, 2010; and investment securities were $319.4 million, an increase of 7.4% from September 30, 2010.

Net income for the nine months ended September 30, 2011 of $792,000 represents an improvement in comparison to the operating results for the same period in 2010. However, operating results remain significantly lower than historical returns experienced by the Bank. Bank earnings are primarily the result of the Bank's net interest income, which decreased slightly, .5%, to $22,736,000 for the first nine months of 2011 from $22,853,000 for the same period in 2010. Other factors which affect earnings include the provision for possible loan losses, noninterest expense, and noninterest income. The provision for possible loan losses decreased significantly, 37.5%, from $11,948,000 for the first nine months of 2010 to $7,473,000 for the first nine months of 2011. The allowance for loan losses, as a percentage of gross loans, was increased to 2.45% at September 30, 2011 as compared to 2.27% at September 30, 2010. Noninterest expense increased 9.2% from $17,518,000 for the first nine months of 2010 to $19,126,000 for the first nine months of 2011; and noninterest income decreased 16.3% from $5,568,000 to $4,662,000 for the same period, respectively. Noninterest expense increased primarily due to increased examination and professional fees, FDIC deposit insurance assessments, the net cost of holding other real estate owned, and other operating expenses. Noninterest income decreased primarily due to decreased gains on sales of investment securities and decreased service charges on deposit accounts.

With the national and local economies expected to remain subdued through the remainder of 2011, we anticipate that profitability will remain below historical levels, and, at the same time, we expect that the Bank will continue to grow, further strengthen, and generally prosper. Although the Bank's credit concerns have remained moderate in comparison to the magnitude of non-performing assets in the industry and local markets, we will continue to address credit concerns during the remainder of 2011 and 2012. Loan losses leveled in the third quarter of 2010 and began to decline in the fourth quarter of 2010. Loan losses are expected to remain above historical levels during 2011 and 2012, but at levels lower than those experienced during 2010.

The national and local economies continue to slowly strengthen. Still, much uncertainty remains about the sustainability and speed of the current recovery. However, we are confident that your bank will continue steadfast and strong through this difficult period. The Bank has been well positioned and prepared to meet future demands and opportunities.

Like most national banks headquartered in South Carolina, in June of this year, the Bank entered into a formal agreement with the Office of the Comptroller of the Currency. The actions outlined in the agreement are designed to strengthen the Bank's ability to deal with economic conditions of the sort that have recently been experienced. The Board of Directors and management continue to diligently work to develop and implement the required plans, policies, and associated procedures necessary to comply with the provisions of this agreement. To date, much has been accomplished; and it is the intention of the Board and management to continue to work with regulatory authorities to bring about full compliance with the provisions of this agreement.

Conway National continues to maintain a substantial financial position and profitability which compare favorably to local markets. Conway National remains dedicated 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

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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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 Amber Nealy

Conway, SC - The Conway National Bank has recognized Amber Nealy for five years of continued service to the bank, CNB officials have announced.

A native of Conway, she is a graduate of Conway High School. She is a teller at the North Conway Office. She lives in Conway with her husband, Grant, and has a son, Gage. She is a youth leader at Crossway Baptist Church in Loris.

Conway National Bank Honors Jackie Lee

Conway, SC - The Conway National Bank has recognized Jackie Lee for ten years of continued service to the bank, CNB officials have announced.

A native of Myrtle Beach, she is a graduate of Myrtle Beach High School, Horry-Georgetown Technical College, and the American Institute of Banking. She is a customer service representative based in the Bank's Northside Office in Myrtle Beach. She lives in Myrtle Beach with her husband, Rene', and has a daughter, Amber Clardy. She is a member of First Baptist Church of Myrtle Beach, active with the Woodmen of the World where she serves as lodge secretary, attends Bible Study Fellowship International, and enjoys camping with Palmetto Sams Club.

Conway National Bank Honors Mendy Hardwick

Conway, SC - The Conway National Bank has recognized Mendy Hardwick for five years of continued service to the bank, CNB officials have announced.

A native of Conway, she is a graduate of Aynor High School. She is a savings clerk at the Operations and Administration Center in Conway and lives in Galivants Ferry with her husband, Bradley, and son, Hunter. She is a member of Damascus FWB Church in Conway.

Conway National Bank Honors Amy Patel

Conway, SC - The Conway National Bank has recognized Amy Patel for five years of continued service to the bank, CNB officials have announced.

A native of Myrtle Beach, she is a graduate of Myrtle Beach High School and The University of South Carolina. She is a mortgage loan originator at the Myrtle Beach Office. She lives in Myrtle Beach and is Vice President of Myrtle Beach Housing Authority Family Self Sufficiency Committee and volunteers with the American Heart Association.

Conway National Bank Honors Vickie Hearl

Conway, SC - The Conway National Bank has recognized Vickie Hearl for twenty-five years of continued service to the bank, CNB officials have announced.

A native of Horry County, she is a graduate of Rosepine High School in Louisiana, and has completed courses in The American Institute of Banking. She attended McNeese State University and is a member of Phi Mu Sorority. She is a financial administrative assistant at the Operations and Administration Center in Conway. She lives in Conway with her husband, George, and has two children, Christopher and Mark. She is a member of White Savannah Original FWB Church .

Conway National Bank Honors Courtney Hasty

Conway, SC - The Conway National Bank has recognized Courtney Hasty for ten years of continued service to the bank, CNB officials have announced.

A native of Horry County, she is a graduate of Carolina Forest High School. She is a Loan Processor at the Myrtle Beach Office. She lives in Conway with her husband, Justin, and has a daughter, Taylor.

Conway National Bank Honors Brad McNeill

Conway, SC - The Conway National Bank has recognized Brad McNeill for ten years of continued service to the bank, CNB officials have announced.

A native of Conway, he is a graduate of Conway Christian School and Coastal Carolina University. He is a network specialist at the Operations and Administration Center in Conway. He lives in Conway with his wife, Rachel, and two daughters, Alexis and Keenan. He is a member of Langston Baptist Church.

Conway National Bank Honors Tammy Scarberry

Conway, SC - The Conway National Bank has recognized Tammy Scarberry for twenty years of service to the bank, CNB officials have announced.

A native of Logan, West Virginia, she is a graduate of Chapmanville High School. She is a Vice President and loan officer at the Myrtle Beach Office. She lives in Myrtle Beach and has two children, J.L. and Stefan. She is Vice Chairman of the Community Kitchen.

Conway National Bank Honors Karen Stanzione

Conway, SC - The Conway National Bank has recognized Karen Stanzione for five years of continued service to the bank, CNB officials have announced.

A native of New Jersey, she is a graduate of Fairlawn High School and attended the American Institute of Banking. She is the head teller at the Pawleys Island Office. She lives in Pawleys Island with her husband, Peter, and has three children, Chris, Danielle, and Jackie.

Conway National Bank Honors Kay Benton

Conway, SC - The Conway National Bank has recognized Kay Benton for ten years of continued service to the bank, CNB officials have announced.

A native of Georgetown, she is a graduate of Winyah High School, Emmanuel College in Franklin Springs, GA, SC Bankers School in Columbia, and RMA Commercial Lending School in Greenville, NC. She is a Vice President and Business Development Officer at the Surfside Beach Office. She lives in Murrells Inlet and is a board member of Murrells Inlet Garden City Fire District.

Conway National Bank Honors Kim Lawson

Conway, SC - The Conway National Bank has recognized Kim Lawson for fifteen years of continued service to the bank, CNB officials have announced.

A native of Aynor, she is a graduate of Aynor High School and is a customer service representative at the Aynor Office. She lives in Aynor with her husband Chris, and has two children, Landon and Connor.