Commercial National Posts Higher First Quarter 2012 Earnings

LATROBE, Pa., April 18, 2012 /PRNewswire/ -- Commercial National Financial Corporation (NASDAQ: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended March 31, 2012. The Company earned $3,796,000 (or $1.33 per average share outstanding) in 2012 compared to $1,360,000 (or $.48 per average share outstanding) in 2011.

President and Chief Executive Officer Gregg E. Hunter noted, "First quarter 2012 earnings were greatly influenced by realized securities sale related gains that were generated in early March as a by-product of an asset/liability management rebalancing. The Company sold $49.8 million in book value taxable municipal bonds and $7.4 million in book value tax-free municipal bonds. These municipal bond sales resulted in a $3.2 million pre-tax gain which equated to a $2.1 million earnings benefit (or $0.74 per average share outstanding). This action was based on several factors. The main factor was a strategic decision to decrease the Company's future market exposure by reducing the average maturity of the bond portfolio. In addition, the Company determined the potential future credit exposure associated with municipal bonds should be reduced. These municipal bond sales provide the Company with enhanced liquidity and flexibility going forward. The municipal bond market experienced significant price appreciation during the first two months of 2012, which provided the Company with a unique opportunity to manage market and credit exposures while also capturing unprecedented gains within earnings and capital. The Company's core earnings not including the bond sale gains were $1,693,000 (or $.59 per average share outstanding).  Commercial National's strong core earnings, solid asset quality and sizable capital base continue to be well-supportive of its regular quarterly common stock cash dividend payments to shareholders."

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, except per share data)












March 31,


March 31,





2012


2011








ASSETS





Cash and due from banks on demand


$                      3,004


$                      5,318

Interest bearing deposits with banks


44,321


3





47,325


5,321








Securities available for sale


128,271


136,795

Restricted investments in bank stock


3,357


4,122








Loans



172,730


190,040


Allowance for loan losses


(1,679)


(1,686)



Net loans


171,051


188,354








Premises and equipment


3,066


3,258

Investment in life insurance


16,140


15,594

Other assets


3,439


12,242









Total assets


$                  372,649


$                  365,686








LIABILITIES AND SHAREHOLDERS' EQUITY





Liabilities






Deposits







Non-interest bearing


$                    96,687


$                    82,098



Interest bearing


216,871


207,898



Total deposits


313,558


289,996









Short-term borrowings


-


7,275


Long-term borrowings


-


10,000


Other liabilities


4,533


11,387



Total liabilities


318,091


318,658








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


54,226


47,937


Accumulated other comprehensive income


5,676


4,435


Treasury stock, at cost, 739,047 shares







 in 2012 and 2011


(12,544)


(12,544)










Total shareholders' equity


54,558


47,028










Total liabilities and shareholders' equity

$                  372,649


$                  365,686

 

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)












Three Months Ended



Three Months Ended





March 31,



March 31,





2012



2011










INTEREST INCOME







Interest and fees on loans

$                                 2,429



$                                 2,717



Interest and dividends on securities:








Taxable

1,158



923




Exempt from federal income taxes

963



728




Other

10



-



Total Interest income

4,560



4,368










INTEREST EXPENSE







Interest on deposits

343



485



Interest on short term borrowings

14



18



Interest on long term borrowings

1



59



Total Interest expense

358



562










NET INTEREST INCOME

4,202



3,806


PROVISION FOR LOAN LOSSES

-



-










NET INTEREST INCOME AFTER






PROVISION FOR LOAN LOSSES

4,202



3,806










OTHER OPERATING INCOME







Asset management and trust income

240



252



Service charges on deposit accounts

262



255



Net Security gains

3,186






Income from investment in life insurance

119



123



Other income

114



64



Total other operating income

3,921



694










OTHER OPERATING EXPENSES







Salaries and employee benefits

1,654



1,585



Net occupancy expense

218



214



Furniture and equipment

91



109



Pennsylvania shares tax

126



126



Legal and professional

81



93



FDIC Insurance

48



87



Other expenses

714



675



Total other operating expenses

2,932



2,889










INCOME BEFORE INCOME TAXES

5,191



1,611


Income tax expense

1,395



251











Net income

$                                 3,796



$                                 1,360










Average Shares Outstanding

2,860,953



2,860,953










Earnings Per Share

$                                   1.33



$                                   0.48


 

SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cbthebank.com

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