Commercial National Reports September 30, 2015 Earnings

04 Nov, 2015, 11:26 ET from Commercial National Financial Corporation

LATROBE, Pa., Nov. 4, 2015 /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, 2015. The Company earned $628,000 (or $0.22 per average share outstanding) in the third quarter 2015 compared to $1,534,000 (or $0.54 per average share outstanding) in the third quarter 2014. The Company earned $4,615,000 (or $1.61 per average share outstanding) for the nine-month period ended September 30, 2015 and $4,802,000 (or $1.68 per average share outstanding) for the nine-month period ended September 30, 2014. The Company's annualized return on average assets and average equity were 0.65% and 4.71%, respectively, for the quarter ended September 30, 2015 compared to 1.54% and 11.63%, respectively, for the quarter ended September 30, 2014. The Company's annualized return on average assets and average equity for the nine month period ended September 30, 2015 were 1.61% and 10.94%, respectively, compared to 1.62% and 12.27%, respectively, for the nine month period ended September 30, 2014. Third quarter book earnings reflect a non-cash $368,000 income tax valuation adjustment which was accompanied by a $341,000 income tax cash refund resulting from the carry-back of a 2014 book tax position asset against the 2012 fiscal year filed tax return. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for September 30, 2015 were 21.78%, 22.45%, 13.53% and 21.78%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "The community banking franchise has recorded steady expansion since year-end 2014 as demonstrated by non-interest bearing checking deposit footings growth of 7.18% and loan portfolio growth of 7.46%. The Company's atypical funding base, with non-interest bearing checking deposits of $113.3 million relative to $393.5 million in total assets, compliments the aggregate optionality of total earning assets. Loan portfolio credit quality remains outstanding with 2015's third quarter representing the thirty-first consecutive fiscal quarter without the need for any loan loss provisioning – a time span of nearly eight years. Core earnings, as evidenced by FDIC tabulated net interest margins of 4.57% for 2015's third quarter and 4.66% for 2015's first nine months, remain favorable. In addition, on a linked sequential quarter basis actual net interest income generation has improved from $3,371,000 in 2015's first quarter to $3,471,000 in 2015's second quarter and $3,573,000 in 2015's third quarter. The Company's substantial capital position, outstanding asset quality and favorable core earnings diagnostics continue to be supportive of the regular $0.26 per share quarterly common stock cash dividend payments to our shareholders. Maintaining an attractive and reliable cash dividend income stream to our shareholders is a top priority for the Company."

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,






2015


2014


2014






















ASSETS








Cash and due from banks on demand


$                      7,195


$                       5,286


$                      7,584


Interest bearing deposits with banks


47


90


6,804



Total cash and cash equivalents


7,242


5,376


14,388












Securities available for sale


178,932


187,070


187,053


Restricted investments in bank stock


714


722


1,081












Loans



184,003


171,224


171,141



Allowance for loan losses


(1,617)


(1,616)


(1,616)




Net loans


182,386


169,608


169,525












Premises and equipment


3,191


3,207


3,310


Investment in Life Insurance


18,002


17,650


17,460


Other assets


3,028


3,886


4,487













Total assets


$                  393,495


$                   387,519


$                  397,304












LIABILITIES AND SHAREHOLDERS' EQUITY








Liabilities:









Deposits:










Non-interest bearing


$                  113,309


$                   105,717


$                  107,141




Interest bearing


206,012


207,669


213,033




Total deposits


319,321


313,386


320,174













Short-term borrowings


18,776


12,225


17,581



Other liabilities 


1,757


3,603


3,003




Total liabilities


339,854


329,214


340,758












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


7,200



Retained earnings


57,776


58,254


57,591



Accumulated other comprehensive income


1,209


5,395


4,299



Less treasury stock, at cost, 739,047 shares in 2015 and 2014


(12,544)


(12,544)


(12,544)




Total shareholders' equity


53,641


58,305


56,546














Total liabilities and shareholders' equity


$                  393,495


$                   387,519


$                  397,304


 

 

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






2015


2014


2015


2014






(unaudited)


(unaudited)


(unaudited)


(unaudited)














INTEREST INCOME:











Interest and fees on loans


$               1,975


$               1,938


$               5,886


$               5,752



Interest and dividends on securities:












Taxable


623


198


1,398


651




Exempt from federal income taxes


1,081


1,698


3,390


5,239



Other


2


15


63


41



Total Interest income


3,681


3,849


10,737


11,683














INTEREST EXPENSE:











Interest on deposits


96


135


307


440



Interest on short-term borrowings


12


18


15


58



Total Interest expense


108


153


322


498














NET INTEREST INCOME


3,573


3,696


10,415


11,185


PROVISION FOR LOAN LOSSES


-


-


-


-














NET INTEREST INCOME AFTER










PROVISION FOR LOAN LOSSES


3,573


3,696


10,415


11,185














OTHER OPERATING INCOME:











Asset management and trust income


301


283


1,061


844



Service charges on deposit accounts


227


249


676


733



Net Security gains


15


-


3,605


14



Income from investment in life insurance


118


120


352


348



Other income


41


45


183


201



Total other operating income


702


697


5,877


2,140














OTHER OPERATING EXPENSES:











Salaries and employee benefits


1,758


1,730


5,273


5,276



Net occupancy expense


190


219


632


660



Furniture and equipment


128


99


387


302



Pennsylvania shares tax


133


102


380


303



Legal and professional


95


66


301


226



FDIC  insurance expense


48


48


144


144



Other expenses


754


767


2,158


2,121



Total other operating expenses


3,106


3,031


9,275


9,032














INCOME BEFORE INCOME TAXES


1,169


1,362


7,017


4,293


Income tax expense (benefit)


541


(172)


2,402


(509)















Net income


$                  628


$               1,534


$               4,615


$               4,802














Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953














Earnings Per Share


$                 0.22


$                 0.54


$                 1.61


$                 1.68


 

SOURCE Commercial National Financial Corporation



RELATED LINKS

http://www.cbthebank.com