2014

Commercial National Reports September 30, 2013 Results

LATROBE, Pa., Oct. 25, 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 September 30, 2013. The Company earned $1,361,000 (or $0.47 per average share outstanding) in the third quarter 2013 compared to $1,074,000 (or $0.38 per average share outstanding) in the third quarter 2012. The Company earned $3,811,000 (or $1.33 per average share outstanding) for the nine-month period ended September 30, 2013 and $6,089,000 (or $2.13 per average share outstanding) for the nine-month period ended September 30, 2012. The Company's annualized return on average assets and average equity were 1.48% and 12.25%, respectively, for the quarter ended September 30, 2013 compared to 1.16% and 7.70%, respectively, for the quarter ended September 30, 2012. The Company's annualized return on average assets and average equity for the nine month period ended September 30, 2013 were 1.36% and 10.20%, respectively, compared to 2.14% and 14.74%, respectively, for the nine month period ended September 30, 2012. Tier one risk-based, total risk-based and leverage capital ratios for September 30, 2013 were 22.10%, 22.82% and 13.05%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Third quarter 2013 earnings of $1,361,000 represented a $287,000, or 26.72%, increase above the $1,074,000 in earnings produced during 2012's third quarter. Comparative earnings for the first nine months of 2013 reflect the $3,317,000 in net realized securities gains generated during 2012's first nine months. The Company's strong core profitability, ample regulatory capital adequacy, exceptional asset quality and uncommon tax efficiency continue to greatly surpass prevailing banking industry standards and all solidly support the regular $0.26 per share common stock quarterly cash dividend payments to our 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)













September 30,

December 31,

September 30,






2013

2012

2012


















ASSETS







Cash and due from banks on demand


$                   8,169

$                    6,468

$                   6,729


Interest bearing deposits with banks


114

32,113

56,320



Total cash and cash equivalents


8,283

38,581

63,049










Securities available for sale


176,814

141,321

117,540


Restricted investments in bank stock


893

2,506

2,884










Loans



162,882

168,886

170,332



Allowance for loan losses


(1,597)

(1,649)

(1,652)




Net loans


161,285

167,237

168,680










Premises and equipment


3,163

3,136

3,146


Investment in Life Insurance


16,924

16,562

16,387


Other assets


13,491

3,719

4,320











Total assets


$              380,853

$               373,062

$              376,006










LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:







Deposits:








Non-interest bearing


$              102,711

$               103,437

$                 99,738




Interest bearing


207,971

213,020

216,305




Total deposits


310,682

316,457

316,043











Short-term borrowings


16,300

-

-



Other liabilities 


8,588

3,839

4,077




Total liabilities


335,570

320,296

320,120










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


54,183

52,604

55,032



Accumulated other comprehensive income


(3,556)

5,506

6,198



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


(12,544)

(12,544)

(12,544)




Total shareholders' equity


45,283

52,766

55,886












Total liabilities and shareholders' equity


$              380,853

$               373,062

$              376,006


 

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

















Three Months


Nine Months






Ended September 30


Ended September 30






2013


2012


2013


2012






(unaudited)


(unaudited)


(unaudited)


(unaudited)














INTEREST INCOME:











Interest and fees on loans


$            1,858


$            2,243


$            5,941


$            6,954



Interest and dividends on securities:












Taxable


298


534


1,105


2,269




Exempt from federal income taxes


1,535


849


3,849


2,695



Other


4


28


30


68



Total Interest income


3,695


3,654


10,925


11,986














INTEREST EXPENSE:











Interest on deposits


179


277


620


924



Interest on short-term borrowings


3


-


3


16



Interest on long-term borrowings


-


-


-


1



Total Interest expense


182


277


623


941














NET INTEREST INCOME


3,513


3,377


10,302


11,045


PROVISION FOR LOAN LOSSES


-


-


-


-














NET INTEREST INCOME AFTER










PROVISION FOR LOAN LOSSES


3,513


3,377


10,302


11,045














OTHER OPERATING INCOME:











Asset management and trust income


241


232


724


706



Service charges on deposit accounts


268


273


784


818



Net Security gains


(5)


122


52


3,317



Income from investment in life insurance


127


125


362


366



Other income


74


45


225


198



Total other operating income


705


797


2,147


5,405














OTHER OPERATING EXPENSES:











Salaries and employee benefits


1,702


1,567


5,079


4,782



Net occupancy expense


210


188


641


616



Furniture and equipment


58


81


286


266



Pennsylvania shares tax


141


125


417


377



Legal and professional


72


84


198


247



FDIC  insurance expense


45


48


133


144



Other expenses


762


949


2,059


2,361



Total other operating expenses


2,990


3,042


8,813


8,793














INCOME BEFORE INCOME TAXES


1,228


1,132


3,636


7,657


Income tax expense (benefit)


(133)


58


(175)


1,568















Net income


$            1,361


$            1,074


$            3,811


$            6,089














Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953














Earnings Per Share


$              0.47


$              0.38


$              1.33


$              2.13


 

SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cbthebank.com

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