Commercial National Posts Higher First Quarter 2012 Earnings

Apr 18, 2012, 16:20 ET from Commercial National Financial Corporation

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