Commercial National Posts Increased First Quarter 2011 Earnings

LATROBE, Pa., May 3, 2011 /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, 2011. The Company earned $1,360,000 (or $.48 per average share outstanding) in 2011 compared to $1,350,000 (or $.47 per average share outstanding) in 2010.

President and Chief Executive Officer Gregg E. Hunter noted, "First quarter 2011 return on average assets (ROA) and return on average equity (ROE) were 1.52% and 11.74%. These high levels of profitability are exclusively attributable to core earnings generation and remain far above prevailing banking industry norms. Net interest margin and earning asset credit quality remained solid during 2011's first quarter. Tax equivalent net interest margin was 5.20% and no loan loss provisions have been needed for nine consecutive fiscal quarters.  The Company's diversified funding base experienced further volume, composition and cost improvement. Overhead was tightly controlled with net operating expense recording a modest decline. Capital continues to be strengthened solely through non-dilutive earnings retention. The Company's reliable quarterly cash dividend payments remain very attractive relative to those paid by other banking institutions. At quarter-end, the Company's tier one risk-based, total risk-based and leverage capital ratios were 20.29%, 21.09% and 12.07%. This growing capital base buttresses the Company's ongoing financial condition and performance by providing the capacity to seize emerging opportunities."

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)










March 31,


March 31,




2011


2010







ASSETS





Cash and due from banks on demand

$     5,318


$     5,535

Interest bearing deposits with banks

3


48




5,321


5,583







Securities available for sale

136,795


141,943

Restricted investments in bank stock

4,122


4,567







Loans


190,040


200,095


Allowance for loan losses

(1,686)


(1,723)



Net loans

188,354


198,372







Premises and equipment

3,258


3,539

Investment in life insurance

15,594


15,042

Other assets

12,242


4,155








Total assets

$ 365,686


$ 373,201







LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:






Deposits:






Non-interest bearing

$   82,098


$   73,749



Interest bearing

207,898


203,708



Total deposits

289,996


277,457








Short-term borrowings

7,275


37,575


Long-term borrowings

10,000


10,000


Other liabilities

11,387


3,681



Total liabilities

318,658


328,713







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

47,937


44,944


Accumulated other comprehensive income

4,435


4,888


Treasury stock, at cost, 739,047 shares






in 2011 and 2010

(12,544)


(12,544)









Total shareholders' equity

47,028


44,488









Total liabilities and shareholders' equity

$ 365,686


$ 373,201



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,




2011


2010







INTEREST INCOME:





Interest and fees on loans

$  2,717


$  2,920


Interest and dividends on securities:






Taxable

923


1,323



Exempt from federal income taxes

728


448



Other

-


1


Total Interest income

4,368


4,692







INTEREST EXPENSE:





Interest on deposits

485


650


Interest on short-term borrowings

18


41


Interest on long -term borrowings

59


59


Total Interest expense

562


750







NET INTEREST INCOME

3,806


3,942

PROVISION FOR LOAN LOSSES

-


-







NET INTEREST INCOME AFTER




PROVISION FOR LOAN LOSSES

3,806


3,942







OTHER OPERATING INCOME:





Asset management and trust income

252


212


Service charges on deposit accounts

98


127


Other service charges and fees

216


207


Income from investment in life insurance

123


121


Other income

5


46


Total other operating income

694


713







OTHER OPERATING EXPENSES





Salaries and employee benefits

1,585


1,519


Net occupancy expense

214


227


Furniture and equipment

109


142


Pennsylvania shares tax

126


126


Legal and professional

93


124


FDIC Insurance

87


82


Other expenses

675


707


Total other operating expenses

2,889


2,927







INCOME BEFORE INCOME TAXES

1,611


1,728

Income tax expense

251


378








Net income

$  1,360


$  1,350







Average Shares Outstanding

2,860,953


2,860,953







Earnings Per Share

$  0.48


$  0.47



SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cbthebank.com

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