Commercial National Achieves Earnings Growth of 7.68% for Second Quarter and 4.25% for First Six Months

01 Aug, 2011, 09:57 ET from Commercial National Financial Corporation

LATROBE, Pa., Aug. 1, 2011 /PRNewswire/ -- Commercial National Financial Corporation (NASDAQ: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended June 30, 2011. The Company earned $1,487,000 (or $.52 per average share outstanding) in 2011 compared to $1,381,000 (or $.48 per average share outstanding) in 2010. The Company earned $2,847,000 (or $1.00 per average share outstanding) for the six-month period ended June 30, 2011 and $2,731,000 (or $.95 per average share outstanding) for the six-month period ended June 30, 2010. Second quarter 2011 earnings increased $106,000 or 7.68% while first six month 2011 earnings increased $116,000 or 4.25%.

President and Chief Executive Officer Gregg E. Hunter noted, "The financial performance realized thus far in 2011 remains exclusively attributable to core earnings generation rather than to any irregular non-recurring material items. Tax-equivalent net interest margin was 5.27% for 2011's second quarter and 5.24% for 2011's first six months. The Company's asset quality maintained its traditional strength through mid-year as exemplified by ten consecutive fiscal quarters without need for any loan loss provisions or securities impairment charges. Return on average assets was 1.60% for 2011's second quarter and 1.56% for 2011's first six months.  At second quarter end, the Company's tier one risk-based, total risk-based and leverage capital ratios were 19.87%, 20.64% and 11.90%, respectively.  The Company's well above banking industry standard core financial performance and ample capital levels continue to solidly support very attractive and reliable quarterly cash dividend payments to the Company's common stock shareholders".  

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates ten community banking facilities in Greensburg, Hempfield Township, Ligonier, North Huntingdon, Unity Township and West Newton, Pennsylvania and also maintains a commercial business development sales force throughout its entire market area. The Company operates an asset management and trust division of Commercial Bank & Trust of PA headquartered in Greensburg, Pennsylvania. Commercial Bank & Trust of PA also serves its customer base from an Internet banking site (www.cbthebank.com) and an automated TouchTone Teller banking system.

Safe Harbor Statement

Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are based on information currently available to the Company, and the Company assumes no obligation to update these statements as circumstances change. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including changes in general economic and financial market conditions, unforeseen credit problems, and the Company's ability to execute its business plans.  The actual results of future events could differ materially from those stated in any forward-looking statements herein.

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollars in thousands, except per share data)

June 30,

June 30,

2011

2010

(unaudited)

(unaudited)

ASSETS

Cash and due from banks on demand

$      6,949

$      6,106

Interest bearing deposits with banks

11

28

Total cash and cash equivalents

6,960

6,134

Securities available for sale

159,026

138,766

Restricted investments in bank stock

3,916

4,567

Loans

190,858

197,998

Allowance for loan losses

(1,683)

(1,694)

Net loans

189,175

196,304

Premises and equipment

3,192

3,449

Investment in Life Insurance

15,715

15,164

Other assets

4,153

4,039

Total assets

$  382,137

$  368,423

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest bearing

$    87,711

$    74,542

Interest bearing

202,724

199,837

Total deposits

290,435

274,379

Short-term borrowings

30,125

34,650

Long-term borrowings

10,000

10,000

Other liabilities

3,563

3,918

Total liabilities

334,123

322,947

Shareholders' equity:

Common stock, par value $2 per share; 10,000,000 shares

authorized; 3,600,000 shares issued; 2,860,953 shares

outstanding in 2011 and 2010

7,200

7,200

Retained earnings

48,795

45,695

Accumulated other comprehensive income

4,563

5,125

Less treasury stock, at cost, 739,047 shares in 2011 and 2010

(12,544)

(12,544)

Total shareholders' equity

48,014

45,476

Total liabilities and shareholders' equity

$  382,137

$  368,423

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

Three Months

Six Months

Ended June 30

Ended June 30

2011

2010

2011

2010

(unaudited)

(unaudited)

(unaudited)

(unaudited)

INTEREST INCOME:

Interest and fees on loans

$      2,666

$      2,854

$      5,383

$      5,774

Interest and dividends on securities:

Taxable

887

1,165

1,810

2,488

Exempt from federal income taxes

910

590

1,638

1,038

Other

1

1

1

2

Total Interest income

4,464

4,610

8,832

9,302

INTEREST EXPENSE:

Interest on deposits

475

633

960

1,283

Interest on short-term borrowings

11

36

29

77

Interest on long-term borrowings

59

59

118

118

Total Interest expense

545

728

1,107

1,478

NET INTEREST INCOME

3,919

3,882

7,725

7,824

PROVISION FOR LOAN LOSSES

-

-

-

-

NET INTEREST INCOME AFTER

PROVISION FOR LOAN LOSSES

3,919

3,882

7,725

7,824

OTHER OPERATING INCOME:

Asset management and trust income

254

217

506

429

Service charges on deposit accounts

270

298

526

570

Income from investment in life insurance

121

122

244

243

Other income

80

62

143

170

Total other operating income

725

699

1,419

1,412

OTHER OPERATING EXPENSES:

Salaries and employee benefits

1,516

1,490

3,101

3,009

Net occupancy expense

200

199

414

426

Furniture and equipment

104

135

213

277

Pennsylvania shares tax

127

126

253

252

Legal and professional

129

115

222

239

FDIC  insurance expense

83

85

170

167

Other expenses

738

720

1,413

1,427

Total other operating expenses

2,897

2,870

5,786

5,797

INCOME BEFORE INCOME TAXES

1,747

1,711

3,358

3,439

Income tax expense

260

330

511

708

Net income

$      1,487

$      1,381

$      2,847

$      2,731

Average Shares Outstanding

2,860,953

2,860,953

2,860,953

2,860,953

Earnings Per Share

$        0.52

$        0.48

$        1.00

$        0.95

SOURCE Commercial National Financial Corporation



RELATED LINKS

http://www.cbthebank.com