Commercial National Reports December 31, 2015 Earnings

Jan 29, 2016, 12:41 ET from Commercial National Financial Corporation

LATROBE, Pa., Jan. 29, 2016 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended December 31, 2015. The Company earned $1,073,000 (or $0.38 per average share outstanding) in the fourth quarter 2015 compared to $1,410,000 (or $0.49 per average share outstanding) in the fourth quarter 2014. The Company earned $5,688,000 (or $1.99 per average share outstanding) for the twelve-month period ended December 31, 2015 and $6,210,000 (or $2.17 per average share outstanding) for the twelve-month period ended December 31, 2014. The Company's annualized return on average assets and average equity were 1.09% and 7.70%, respectively, for the quarter ended December 31, 2015 compared to 1.45% and 9.81%, respectively, for the quarter ended December 31, 2014. The Company's annualized return on average assets and average equity for the twelve-month period ended December 31, 2015 were 1.48% and 10.23%, respectively, compared to 1.58% and 11.61%, respectively, for the twelve-month period ended December 31, 2014. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for December 31, 2015 were 21.96%, 22.63%, 13.42% and 21.96%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Core earnings, as evidenced by FDIC tabulated net interest margins of 4.59% for 2015's fourth quarter and 4.64% for full year 2015, remain strong.  On a linked sequential quarter basis actual net interest income generation substantially improved throughout 2015 from $3,371,000 in the first quarter to $3,611,000 in the fourth quarter.  Asset quality continues to be outstanding with 2015 representing the eighth consecutive year without any need for loan loss provisioning – a time span that encompassed the worst depths of the financial crisis driven Great Recession. The Company's underlying core earnings in conjunction with its solid capital base provide ample capacity to maintain the regular $0.26 per share quarterly common stock cash dividend to shareholders. The special extra dividend of $1.00 per share which was paid in May 2015 was based on atypically favorable multi-year results being supplemented by sizeable current year realized net securities sale related gains in much the same manner as the previous $1.00 per share special cash dividend of December 2012.  Providing an attractive and reliable cash dividend income stream to all our shareholders through the safe and sound operation of this bank is a long-standing top priority for the Company. In this regard, Commercial National Financial Corporation's actions over an extended number of years stand as concrete testament to its delivering on that priority."

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.

As disclosed each year in the Annual Report to Shareholders, on December 31, 2015, the Company employed 110 people in full-time and part-time positions. Fifty-six (56) employees are represented by the United Auto Workers, Local 1799. The Company has had unionized employees since 1972.  In 2013, the Company and the bargaining unit entered into a labor agreement that will expire in February 2019. The Commonwealth of Pennsylvania and the National Labor Relations Board both afford protection to the organized status of pre-existing collective bargaining units. The Company has been advised that bargaining unit status may limit the Company's strategic options relative to those of non-unionized insured depository institutions. The Company continues to consider this as a factor in its strategic and capital management decisions.

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)












December 31


December 31





2015


2014








ASSETS





Cash and due from banks on demand


$                      6,092


$                      5,286

Interest bearing deposits with banks


3,032


90


Total cash and cash equivalents


9,124


5,376








Securities available for sale


184,442


187,070

Restricted investments in bank stock


992


722








Loans



182,751


171,223


Allowance for loan losses


(1,603)


(1,616)



Net loans


181,148


169,607








Premises and equipment


3,298


3,207

Investment in Life Insurance


18,181


17,650

Other assets


2,317


3,887









Total assets


$                  399,502


$                  387,519








LIABILITIES AND SHAREHOLDERS' EQUITY




Liabilities:






Deposits:







Non-interest bearing


$                  115,197


$                  105,717



Interest bearing


204,716


207,669



Total deposits


319,913


313,386









Short-term borrowings


22,158


12,225


Other liabilities


2,311


3,603



Total liabilities


344,382


329,214








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 2015 and 2014.


7,200


7,200
















Retained earnings


58,106


58,254









Accumulated other comprehensive income

2,358


5,395









Less treasury stock, at cost,






739,047 shares in 2015 and 2014


(12,544)


(12,544)



Total shareholders' equity


55,120


58,305










Total liabilities and shareholders' equity

$                  399,502


$                  387,519








 

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)
















Three Months


Twelve Months





Ended December 31


Ended December 31





2015


2014


2015


2014












INTEREST INCOME:










Interest and fees on loans

$         1,962


$         1,915


$         7,848


$         7,667


Interest and dividends on securities:










Taxable


687


182


2,085


833



Exempt from federal income taxes

1,064


1,472


4,454


6,711



Other


8


13


71


54


Total Interest income


3,721


3,582


14,458


15,265












INTEREST EXPENSE:










Interest on deposits


91


129


398


569


Interest on short-term borrowings

19


16


34


74


Total Interest expense


110


145


432


643












NET INTEREST INCOME


3,611


3,437


14,026


14,622

PROVISION FOR LOAN LOSSES

-


-


-


-












NET INTEREST INCOME AFTER








PROVISION FOR LOAN LOSSES

3,611


3,437


14,026


14,622












OTHER OPERATING INCOME:









Asset management and trust income

295


298


1,356


1,142


Service charges on deposit accounts

218


243


894


976


Net Security gains (loss)

-


7


3,605


21


Income from investment in life insurance

137


149


489


497


Other income


43


39


226


240


Total other operating income


693


736


6,570


2,876












OTHER OPERATING EXPENSES









Salaries and employee benefits

1,745


1,741


7,018


7,017


Net occupancy expense


204


193


836


853


Furniture and equipment


142


201


529


503


Pennsylvania shares tax


132


101


512


404


Legal and professional


112


114


413


340


FDIC Insurance expense


36


48


180


192


Other expenses


662


589


2,820


2,710


Total other operating expenses

3,033


2,987


12,308


12,019












INCOME BEFORE INCOME TAXES

1,271


1,186


8,288


5,479

Income tax expense (benefit)

198


(224)


2,600


(731)













Net income


$         1,073


$         1,410


$         5,688


$         6,210












Average Shares Outstanding

2,860,953


2,860,953


2,860,953


2,860,953












Earnings Per Share


0.38


0.49


1.99


2.17












 

SOURCE Commercial National Financial Corporation



RELATED LINKS

http://www.cbthebank.com