Commercial National Posts Increased First Quarter 2011 Earnings

03 May, 2011, 09:45 ET from Commercial National Financial Corporation

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