2014

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

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

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