Commercial National Reports 46.37% First Quarter 2014 Earnings Increase

LATROBE, Pa., April 29, 2014 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2014. The Company earned $1,613,000 (or $.56 per average share outstanding) in the first quarter 2014 compared to $1,102,000 (or $.39 per average share outstanding) in the first quarter 2013. The Company's annualized return on average assets and average equity were 1.63% and 13.32%, respectively, for the quarter ended March 31, 2014 compared to 1.17% and 8.35%, respectively, for the quarter ended March 31, 2013. Tier one risk-based, total risk-based and leverage capital ratios for March 31, 2014 were 21.80%, 22.50% and 12.60%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "First quarter 2014 earnings increased $511,000, or 46.37%. Tax equivalent net interest margin was 5.07% in 2014's first quarter in comparison to 4.52% in the first quarter of 2013. The 56.42% efficiency ratio of 2014's first quarter was notably improved from 63.99% in 2013's first quarter. Net interest margin and efficiency ratio trends confirm significant core earnings strengthening over the past four fiscal quarters. Successful tax position optimization and very high asset quality have also materially contributed to overall profitability. Capital adequacy remains well in excess of both current and future regulatory requirements. The Company's strong underlying core profitability in conjunction with its substantial capital base continue to surpass those of the broader banking industry and provide ample capacity to support the regular $0.26 per share quarterly common stock cash dividend payments to shareholders."

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


December 31


March 31,





2014


2013


2013










ASSETS







Cash and due from banks on demand


$                      6,385


$                      8,036


$                      4,229

Interest bearing deposits with banks


91


3,999


21,844


Cash and Cash Equivalents


6,476


12,035


26,073










Securities available for sale


195,642


185,446


160,701

Restricted investments in bank stock


1,709


1,425


2,138










Loans


168,631


163,916


166,424


Allowance for loan losses


(1,620)


(1,619)


(1,644)



Net loans


167,011


162,297


164,780










Premises and equipment


3,173


3,096


3,136

Investment in life insurance


17,226


17,111


16,676

Other assets


4,864


12,924


4,165











Total assets


$                  396,101


$                  394,334


$                  377,669










LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities








Deposits









Non-interest bearing


$                  106,795


$                  104,792


$                  106,941



Interest bearing


212,754


211,769


215,591



Total deposits


319,549


316,561


322,532











Short-term borrowings


25,425


23,311


-


Other liabilities


688


8,325


2,700



Total liabilities


345,662


348,197


325,232










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 2014 and 2013


7,200


7,200


7,200


Retained earnings


55,889


55,020


52,962


Accumulated other comprehensive income


(106)


(3,539)


4,819


Treasury stock, at cost, 739,047 shares









 in 2014 and 2013


(12,544)


(12,544)


(12,544)












Total shareholders' equity


50,439


46,137


52,437












Total liabilities and shareholders' equity

$                  396,101


$                  394,334


$                  377,669










 

 

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,





2014



2013










INTEREST INCOME







Interest and fees on loans

$                          1,895



$                          2,082



Interest and dividends on securities:








Taxable

238



446




Exempt from federal income taxes

1,775



1,000




Other

9



16



Total Interest income

3,917



3,544










INTEREST EXPENSE







Interest on deposits

155



226



Interest on short term borrowings

21



-



Interest on long term borrowings

-



-



Total Interest expense

176



226










NET INTEREST INCOME

3,741



3,318


PROVISION FOR LOAN LOSSES

-



-










NET INTEREST INCOME AFTER






PROVISION FOR LOAN LOSSES

3,741



3,318










OTHER OPERATING INCOME







Asset management and trust income

277



237



Service charges on deposit accounts

236



255



Net Security losses

(7)



-



Income from investment in life insurance

114



114



Other income

103



99



Total other operating income

723



705










OTHER OPERATING EXPENSES







Salaries and employee benefits

1,807



1,712



Net occupancy expense

229



225



Furniture and equipment

101



103



Pennsylvania shares tax

100



138



Legal and professional

84



63



FDIC Insurance

48



44



Other expenses

663



658



Total other operating expenses

3,032



2,943










INCOME BEFORE INCOME TAXES

1,432



1,080


Income tax ( benefit) expense

(181)



(22)











Net income

$                          1,613



$                          1,102










Average Shares Outstanding

2,860,953



2,860,953










Earnings Per Share

$                            0.56



$                            0.39










 



 

SOURCE Commercial National Financial Corporation



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