Commercial National Reports June 30, 2013 Results

LATROBE, Pa., July 26, 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 June 30, 2013. The Company earned $1,348,000 (or $0.47 per average share outstanding) in the second quarter 2013 compared to $1,220,000 (or $0.43 per average share outstanding) in the second quarter 2012. The Company earned $2,450,000 (or $0.86 per average share outstanding) for the six-month period ended June 30, 2013 and $5,016,000 (or $1.75 per average share outstanding) for the six-month period ended June 30, 2012 when $3,195,000 in net securities gains were realized. The Company's annualized return on average assets and average equity were 1.44% and 10.30%, respectively, for the quarter ended June 30, 2013 compared to 1.31% and 8.86%, respectively, for the quarter ended June 30, 2012. The Company's annualized return on average assets and average equity for the six month period ended June 30, 2013 were 1.30% and 9.32%, respectively, compared to 2.61% and 18.35%, respectively, for the six month period ended June 30, 2012. Tier one risk-based, total risk-based and leverage capital ratios for June 30, 2013 were 22.24%, 23.00% and 13.02%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Second quarter 2013 earnings of $1,348,000 represented a $246,000, or 22.32%, improvement over the $1,102,000 in earnings produced during 2013's first quarter.  Core profitability and regulatory capital adequacy continue to significantly surpass prevailing banking industry norms due to outstanding earning asset credit quality, strong net interest margin, effective net operating expense control and uncommon tax efficiency.  The Company's core earnings and capital remain supportive of the regular $0.26 per share common stock quarterly 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)













June 30,

December 31,

June 30,






2013

2012

2012


















ASSETS






Cash and due from banks on demand


$ 6,216

$ 6,468

$ 6,281


Interest bearing deposits with banks


4,883

32,113

47,487



Total cash and cash equivalents


11,099

38,581

53,768










Securities available for sale


169,522

141,321

126,020


Restricted investments in bank stock


1,490

2,506

3,189










Loans



160,426

168,886

166,586



Allowance for loan losses


(1,640)

(1,649)

(1,639)




Net loans


158,786

167,237

164,947










Premises and equipment


3,171

3,136

3,046


Investment in Life Insurance


16,797

16,562

16,261


Other assets


4,901

3,719

4,523











Total assets


$ 365,766

$ 373,062

$ 371,754










LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:







Deposits:








Non-interest bearing


$ 106,717

$ 103,437

$ 100,586




Interest bearing


211,514

213,020

211,993




Total deposits


318,231

316,457

312,579











Short-term borrowings


-

-

-



Long-term borrowings


-

-

-



Other liabilities


909

3,839

3,997




Total liabilities


319,140

320,296

316,576










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


53,566

52,604

54,703



Accumulated other comprehensive income


(1,596)

5,506

5,819



Less treasury stock, at cost, 739,047 shares in 2013
and 2012


(12,544)

(12,544)

(12,544)




Total shareholders' equity


46,626

52,766

55,178












Total liabilities and shareholders' equity


$ 365,766

$ 373,062

$ 371,754


















 

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

















Three Months


Six Months






Ended June 30


Ended June 30






2013


2012


2013


2012






(unaudited)


(unaudited)


(unaudited)


(unaudited)














INTEREST INCOME:











Interest and fees on loans


$               2,001


$               2,282


$               4,083


$               4,711



Interest and dividends on securities:












Taxable


361


577


807


1,735




Exempt from federal income taxes


1,314


883


2,314


1,846



Other


10


30


26


40



Total Interest income


3,686


3,772


7,230


8,332














INTEREST EXPENSE:











Interest on deposits


215


304


441


647



Interest on short-term borrowings


-


1


-


15



Interest on long-term borrowings


-


-


-


1



Total Interest expense


215


305


441


663














NET INTEREST INCOME


3,471


3,467


6,789


7,669


PROVISION FOR LOAN LOSSES


-


-


-


-














NET INTEREST INCOME AFTER










PROVISION FOR LOAN LOSSES


3,471


3,467


6,789


7,669














OTHER OPERATING INCOME:











Asset management and trust income


246


234


483


474



Service charges on deposit accounts


261


283


516


545



Net Security gains


57


9


57


3,195



Income from investment in life insurance


121


122


235


241



Other income


52


39


151


153



Total other operating income


737


687


1,442


4,608














OTHER OPERATING EXPENSES:











Salaries and employee benefits


1,665


1,561


3,377


3,215



Net occupancy expense


206


210


431


428



Furniture and equipment


125


94


228


185



Pennsylvania shares tax


138


126


276


252



Legal and professional


63


82


126


163



FDIC  insurance expense


44


48


88


96



Other expenses


639


698


1,297


1,412



Total other operating expenses


2,880


2,819


5,823


5,751














INCOME BEFORE INCOME TAXES


1,328


1,335


2,408


6,526


Income tax expense (benefit)


(20)


115


(42)


1,510















Net income


$               1,348


$               1,220


$               2,450


$               5,016














Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953














Earnings Per Share


$                 0.47


$                 0.43


$                 0.86


$                 1.75


























 

 

SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cnbthebankonline.com

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