Commercial National Generates Earnings Growth of 34.99% for Third Quarter and 14.63% for First Nine Months

01 Nov, 2011, 11:08 ET from Commercial National Financial Corporation

LATROBE, Pa., Nov. 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 September 30, 2011. The Company earned $1,879,000 (or $.65 per average share outstanding) in 2011 compared to $1,392,000 (or $.49 per average share outstanding) in 2010. The Company earned $4,726,000 (or $1.65 per average share outstanding) for the nine-month period ended September 30, 2011 and $4,123,000 (or $1.44 per average share outstanding) for the nine-month period ended September 30, 2010. Third quarter 2011 earnings increased $487,000, or 34.99%, while first nine months 2011 earnings increased $603,000, or 14.63%.

President/Chief Executive Officer Gregg E. Hunter noted, "Core earnings have progressively strengthened throughout 2011. Asset quality remained high with 2011's third quarter being the eleventh consecutive fiscal quarter without need for any loan loss provisions or securities impairment charges. Return on average assets was 1.92% for 2011's third quarter and 1.69% for 2011's first nine months. Third quarter-end tier one risk-based, total risk-based and leverage capital ratios were 20.05%, 20.81% and 11.58%, respectively. Commercial National's strong core earnings, high asset quality and ample capital adequacy facilitated the Company's third quarter dividend action which increased the previous $0.22 regular quarterly common stock cash dividend by 18.18% to a new all-time record high of $0.26 per share. Maintaining an attractive quarterly cash dividend stream to our shareholders continues to be a top priority for the Company."

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates 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

(Unaudited)

(Dollars in thousands)

September

September

2011

2010

ASSETS

Cash and due from banks on demand

$                      7,238

$                      7,883

Interest bearing deposits with banks

324

49

Total cash and cash equivalents

7,562

7,932

Securities available for sale

177,772

134,575

Restricted investments in bank stock

3,720

4,567

Loans

187,391

197,065

Allowance for loan losses

(1,673)

(1,686)

Net loans

185,718

195,379

Premises and equipment

3,136

3,405

Other assets

22,529

19,346

Total assets

$                  400,437

$                  365,204

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest bearing

$                    90,198

$                    80,454

Interest bearing

205,376

195,320

Total deposits

295,574

275,774

Short-term borrowings

36,275

28,375

Long-term borrowings

10,000

10,000

Other liabilities

7,154

4,236

Total liabilities

349,003

318,385

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

49,930

46,458

Accumulated other comprehensive income

6,848

5,705

Less treasury stock, at cost,

739,047 shares in 2011 and 2010

(12,544)

(12,544)

Total shareholders' equity

51,434

46,819

Total liabilities and shareholders' equity

$                  400,437

$                  365,204

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

Three Months

Nine Months

Ended September 30

Ended September 30

2011

2010

2011

2010

INTEREST INCOME:

Interest and fees on loans

$               2,670

$               2,826

$               8,053

$               8,600

Interest and dividends on securities:

Taxable

1,068

1,031

2,878

3,519

Exempt from federal income taxes

1,018

668

2,656

1,706

Other

-

-

1

2

Total Interest income

4,756

4,525

13,588

13,827

INTEREST EXPENSE:

Interest on deposits

408

566

1,368

1,849

Interest on short-term borrowings

16

35

45

112

Interest on long-term borrowings

59

59

177

177

Total Interest expense

483

660

1,590

2,138

NET INTEREST INCOME

4,273

3,865

11,998

11,689

PROVISION FOR LOAN LOSSES

-

-

-

-

NET INTEREST INCOME AFTER

PROVISION FOR LOAN LOSSES

4,273

3,865

11,998

11,689

OTHER OPERATING INCOME:

Asset management and trust income

327

280

833

709

Service charges on deposit accounts

268

294

794

864

Income from investment in life insurance

121

122

365

365

Other income

43

62

186

232

Total other operating income

759

758

2,178

2,170

OTHER OPERATING EXPENSES

Salaries and employee benefits

1,524

1,510

4,625

4,519

Net occupancy expense

218

212

632

638

Furniture and equipment

92

123

305

400

Pennsylvania shares tax

124

125

377

377

Legal and professional

84

110

306

349

FDIC Insurance expense

8

90

178

257

Other expenses

766

763

2,179

2,190

Total other operating expenses

2,816

2,933

8,602

8,730

INCOME BEFORE INCOME TAXES

2,216

1,690

5,574

5,129

Income tax expense

337

298

848

1,006

Net income

$               1,879

$               1,392

$               4,726

$               4,123

Average Shares Outstanding

2,860,953

2,860,953

2,860,953

2,860,953

Earnings Per Share

$                 0.65

$                 0.49

$                 1.65

$                 1.44

SOURCE Commercial National Financial Corporation



RELATED LINKS

http://www.cbthebank.com