Commercial National Reports First Quarter 2013 Results

LATROBE, Pa., April 30, 2013 /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, 2013. The Company earned $1,102,000 (or $0.39 per average share outstanding) in the first quarter 2013 compared to $3,796,000 (or $1.33 per average share outstanding) in the first quarter 2012. The Company's annualized return on average assets and average equity were 1.17% and 8.35%, respectively, for the quarter ended March 31, 2013 compared to 3.83% and 27.97%, respectively, for the quarter ended March 31, 2012. Tier one risk-based, total risk-based and leverage capital ratios for first quarter-end 2013 were 22.65%, 23.43% and 12.88% respectively. Loan portfolio credit quality remains very high and no loan loss provisioning has been needed over the past 17 consecutive fiscal quarters.

President and Chief Executive Officer, Gregg E. Hunter noted, "The Company's core earnings continue to out-perform prevailing banking industry norms. Earnings in the first quarter of 2012 benefited from $3,186,000 in non-recurring net securities sale related gains. Core earnings in 2013 reflect outstanding earning asset credit quality, high net interest margin, effective overhead cost containment and exceptional tax efficiency. Capital adequacy greatly surpasses both present and proposed regulatory standards.  The Company's strong earnings performance and ample capital base solidly support the regular $0.26 quarterly common stock cash dividend. Providing an attractive and reliable cash dividend income stream to our shareholders remains a top priority for the Company. Attractive and reliable cash dividends reinforce Commercial National Financial Corporation's common stock market share price valuations which significantly exceed those of the broader bank equity sector."

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,





2013


2012


2012










ASSETS







Cash and due from banks on demand


$                      4,229


$                      6,468


$                      3,004

Interest bearing deposits with banks


21,844


32,113


44,321


Cash and Cash Equivalents


26,073


38,581


47,325










Securities available for sale


160,701


141,321


128,271

Restricted investments in bank stock


2,138


2,506


3,357










Loans



166,424


168,886


172,730


Allowance for loan losses


(1,644)


(1,649)


(1,679)



Net loans


164,780


167,237


171,051










Premises and equipment


3,136


3,136


3,066

Investment in life insurance


16,676


16,562


16,140

Other assets


4,165


3,719


3,439











Total assets


$                  377,669


$                  373,062


$                  372,649










LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities








Deposits









Non-interest bearing


$                  106,941


$                  103,437


$                    96,687



Interest bearing


215,591


213,020


216,871



Total deposits


322,532


316,457


313,558











Short-term borrowings


-


-


-


Long-term borrowings


-


-


-


Other liabilities


2,700


3,839


4,533



Total liabilities


325,232


320,296


318,091










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 2013 and 2012


7,200


7,200


7,200


Retained earnings


52,962


52,604


54,226


Accumulated other comprehensive income


4,819


5,506


5,676


Treasury stock, at cost, 739,047 shares









 in 2013 and 2012


(12,544)


(12,544)


(12,544)












Total shareholders' equity


52,437


52,766


54,558












Total liabilities and shareholders' equity

$                  377,669


$                  373,062


$                  372,649

 

 

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,





2013



2012










INTEREST INCOME







Interest and fees on loans

$                                 2,082



$                                 2,429



Interest and dividends on securities:








Taxable

446



1,158




Exempt from federal income taxes

1,000



963




Other

16



10



Total Interest income

3,544



4,560










INTEREST EXPENSE







Interest on deposits

226



343



Interest on short term borrowings

-



14



Interest on long term borrowings

-



1



Total Interest expense

226



358










NET INTEREST INCOME

3,318



4,202


PROVISION FOR LOAN LOSSES

-



-










NET INTEREST INCOME AFTER






PROVISION FOR LOAN LOSSES

3,318



4,202










OTHER OPERATING INCOME







Asset management and trust income

237



240



Service charges on deposit accounts

255



262



Net Security gains

-



3,186



Income from investment in life insurance

114



119



Other income

99



114



Total other operating income

705



3,921










OTHER OPERATING EXPENSES







Salaries and employee benefits

1,712



1,654



Net occupancy expense

225



218



Furniture and equipment

88



91



Pennsylvania shares tax

138



126



Legal and professional

63



81



FDIC Insurance

44



48



Other expenses

673



714



Total other operating expenses

2,943



2,932










INCOME BEFORE INCOME TAXES

1,080



5,191


Income tax ( benefit) expense

(22)



1,395











Net income

$                                 1,102



$                                 3,796










Average Shares Outstanding

2,860,953



2,860,953










Earnings Per Share

$                                   0.39



$                                   1.33


 

SOURCE Commercial National Financial Corporation



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