CNB Financial Corp., the parent company for Commonwealth National Bank, reported a net loss for the third quarter of $2.9 million, or $1.29 per diluted share, compared to net income of $92,000, or $0.04 per diluted share, for the comparable quarter in 2007. The net loss for the first nine months of 2008 was $2.5 million, or $1.11 per share, compared to net income of $232,000, or $0.10 per diluted share for the same period of 2007. The loss for the three and nine months ended September 30, 2008 was due to a $3.0 million non-cash other-than-temporary impairment charge on investments in Fannie Mae and Freddie Mac preferred stock, which was previously disclosed by the Company on September 8, 2008.

"The third quarter loss caused by the decline in the market value of Fannie Mae and Freddie Mac equities held in our investment portfolio, which was precipitated by U.S. Treasury's action of placing Fannie Mae and Freddie Mac in conservator ship clouds an otherwise encouraging 2008. Loans have increased, total assets have grown and the net interest margin is significantly improved. Excluding the impairment charge, earnings have more than doubled on a year-over-year basis, reflecting the favorable results of our diligence in managing the net interest margin," said President and CEO Charles R. Valade.