2014

Commercial National Announces Second Quarter And Six-Month 2012 Earnings

LATROBE, Pa., July 26, 2012 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended June 30, 2012. The Company earned $1,220,000 (or $.43 per average share outstanding) in 2012 compared to $1,487,000 (or $.52 per average share outstanding) in 2011. The Company earned $5,016,000 (or $1.75 per average share outstanding) for the six-month period ended June 30, 2012 and $2,847,000 (or $1.00 per average share outstanding) for the six-month period ended June 30, 2011. The Company's annualized return on average assets and average equity were 1.31% and 8.86%, respectively, for the quarter ended June 30, 2012 compared to 1.60% and 12.47%, respectively, for the quarter ended June 30, 2011. The Company's annualized return on average assets and average equity were 2.61% and 18.35%, respectively, for the six-month period ended June 30, 2012 compared to 1.56% and 12.11%, respectively, for the six-month period ended June 30, 2011.

President and Chief Executive Officer Gregg E. Hunter noted, "All of the Company's asset quality metrics remain exceedingly strong due to disciplined underwriting and investment practices. Earnings for 2012 have been heavily influenced by the sizeable securities sale related gains realized from the early-March partial deleveraging away from selected  municipal bond holdings. This deleveraging significantly improved the Company's capital and liquidity positions while meaningfully reducing market/interest rate exposures. Core earnings continue to greatly surpass prevailing banking industry norms as do the Company's capital adequacy ratios with 24.98% tier one risk-based capital, 25.81% total risk-based capital and 13.59% leverage capital. Taken together, Commercial National Financial Corporation's ample core earnings and capital provide solid support on an ongoing basis for the Company's $0.26 per share common stock quarterly cash dividend."

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,






2012


2011






(unaudited)


(unaudited)










ASSETS






Cash and due from banks on demand


$                      6,281


$                      6,949


Interest bearing deposits with banks


47,487


11



Total cash and cash equivalents


53,768


6,960










Securities available for sale


126,020


159,026


Restricted investments in bank stock


3,189


3,916










Loans



166,586


190,858



Allowance for loan losses


(1,639)


(1,683)




Net loans


164,947


189,175










Premises and equipment


3,046


3,192


Investment in Life Insurance


16,261


15,715


Other assets


4,523


4,153











Total assets


$                  371,754


$                  382,137










LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:







Deposits:








Non-interest bearing


$                  100,586


$                    87,711




Interest bearing


211,993


202,724




Total deposits


312,579


290,435











Short-term borrowings


-


30,125



Long-term borrowings


-


10,000



Other liabilities 


3,997


3,563




Total liabilities


316,576


334,123










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 2012 and 2011














7,200


7,200



Retained earnings


54,703


48,795



Accumulated other comprehensive income


5,819


4,563



Less treasury stock, at cost, 739,047 shares in 2012 and 2011


(12,544)


(12,544)




Total shareholders' equity


55,178


48,014












Total liabilities and shareholders' equity


$                  371,754


$                  382,137










 

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






2012


2011


2012


2011






(unaudited)


(unaudited)


(unaudited)


(unaudited)














INTEREST INCOME:











Interest and fees on loans


$               2,282


$               2,666


$               4,711


$               5,383



Interest and dividends on securities:












Taxable


577


887


1,735


1,810




Exempt from federal income taxes


883


910


1,846


1,638



Other


30


1


40


1



Total Interest income


3,772


4,464


8,332


8,832














INTEREST EXPENSE:











Interest on deposits


304


475


647


960



Interest on short-term borrowings


1


11


15


29



Interest on long-term borrowings


-


59


1


118



Total Interest expense


305


545


663


1,107














NET INTEREST INCOME


3,467


3,919


7,669


7,725


PROVISION FOR LOAN LOSSES


-


-


-


-














NET INTEREST INCOME AFTER










PROVISION FOR LOAN LOSSES


3,467


3,919


7,669


7,725














OTHER OPERATING INCOME:











Asset management and trust income


234


254


474


506



Service charges on deposit accounts


283


270


545


526



Net Security gains


9




3,195





Income from investment in life insurance


122


121


241


244



Other income


39


80


153


143



Total other operating income


687


725


4,608


1,419














OTHER OPERATING EXPENSES:











Salaries and employee benefits


1,561


1,516


3,215


3,101



Net occupancy expense


210


200


428


414



Furniture and equipment


94


104


185


213



Pennsylvania shares tax


126


127


252


253



Legal and professional


82


129


163


222



FDIC  insurance expense


48


83


96


170



Other expenses


698


738


1,412


1,413



Total other operating expenses


2,819


2,897


5,751


5,786














INCOME BEFORE INCOME TAXES


1,335


1,747


6,526


3,358


Income tax expense


115


260


1,510


511















Net income


$               1,220


$               1,487


$               5,016


$               2,847














Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953














Earnings Per Share


$                 0.43


$                 0.52


$                 1.75


$                 1.00


























SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cbthebank.com

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