CNB News & Events

CONWAY NATIONAL BANK PROVIDES OUTLET FOR PROPER AMERICAN FLAG RETIREMENT | e-STATEMENTS NOW AVAILABLE | 4TH QUARTER '15 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 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:

Despite continued concern about the health of the global economy, unrest in various foreign countries, and a roiling U.S. Presidential election cycle, the U.S. national economy experienced continued growth in the fourth quarter of 2015, although at a slower pace. According to the Bureau of Economic Analysis, a division of the U.S. Department of Commerce, the U.S. national real gross domestic product (GDP) grew at an annual rate of 0.7% during the fourth quarter of 2015, in its advance estimate. Growth in real GDP for the fourth quarter of 2015 primarily reflects increases in personal consumption expenditures, residential fixed investment, and federal government spending, partly offset by decreases in private inventory investment, exports, and nonresidential fixed investment. Locally, total real estate transactions increased 11.5% for the year ended 2015, at 15,272, as compared to 2014, at 13,703.

The Company's net income for the year ended December 31, 2015 totaled $7,553,000, up 23.2% from $6,133,000 for 2014, for a return on average assets of .73% and a return on average equity of 7.48% as compared to .63% and 6.38%, respectively, for 2014. On a per share basis, earnings increased 23.6% to $4.61 for 2015, as compared to $3.73 for 2014.

Total assets increased to $1,051.0 million at December 31, 2015, an increase of 7.0% from $981.9 million at December 31, 2014; and capital stood at $101.3 million at December 31, 2015, compared to $97.0 million at December 31, 2014, up 4.5%. The levels of total assets and capital at December 31, 2015 mark the first year end that total assets exceeded $1 billion and capital exceeded $100 million. Total deposits were $851.6 million at December 31, 2015, an increase of 6.5% from $799.3 million at December 31, 2014. Repurchase agreements increased to $92.0 million at December 31, 2015, an increase of 15.7% from $79.5 million at December 31, 2014. Loans totaled $452.3 million at December 31, 2015, an increase of 2.6% from December 31, 2014; and investment securities were $506.3 million, an increase of 11.1% from December 31, 2014.

Net income for 2015 of $7,553,000 is primarily the result of the Bank's net interest income. Net interest income increased 4.4% to $28,947,000 for 2015 from $27,721,000 for 2014. Other factors which affect earnings include the provision for loan losses, noninterest expense, and noninterest income. The provision for loan losses was reduced to zero for 2015 as compared to $1,240,000 for 2014. The allowance for loan losses, as a percentage of net loans, stood at 1.86% at December 31, 2015 as compared to 2.09% at December 31, 2014. Noninterest expense increased 2.4% for 2015 to $25,661,000 as compared to $25,048,000 for 2014; and noninterest income increased 4.7% to $7,879,000 from $7,526,000 for 2015 and 2014, respectively. The increase in noninterest expense was due to increased salaries and employee benefits, primarily medical benefits expense, and other operating expenses. Noninterest income increased due to increased other operating income, primarily debit card income.

The Board of Directors and management look forward to construction and opening of the Bank's 15th banking office, the Carolina Forest branch office at 4100 River Oaks Drive. Construction is expected to commence late in the first quarter. The office is tentatively expected to be opened in the fall.

Conway National continues to grow, maintains a substantial financial position, and is experiencing much improved profitability, all of 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 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 Carol Butler
Conway, SC - The Conway National Bank has recognized Carol M. Butler for twenty-five years of continued service to the bank, CNB officials have announced.

A native of Bucksport, she is a graduate of Conway High School and attended The American Institute of Banking. She is a Banking Officer and Branch Operations Manager at the Conway Banking Office. She lives in Conway with her husband, Reggie, and has two sons, Maurice and Tyler. She is a member and financial secretary at Jerusalem Baptist Church in Bucksport.


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

A native of Myrtle Beach, she is a graduate of Carolina Forest High School. She lives in Myrtle Beach with her husband, Jimmy, and has one daughter, Willow. She is a teller at the Myrtle Beach Office.