Commercial National Achieves Earnings Growth of 9.95% for Third Quarter and 14.66% for First Nine Months

Oct 25, 2010, 13:57 ET from Commercial National Financial Corporation

LATROBE, Pa., Oct. 25 /PRNewswire-FirstCall/ -- Commercial National Financial Corporation (Nasdaq: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended September 30, 2010. The Company earned $1,392,000 (or $.49 per average share outstanding) in 2010 compared to $1,266,000 (or $.44 per average share outstanding) in 2009. The Company earned $4,123,000 (or $1.44 per average share outstanding) for the nine-month period ended September 30, 2010 and $3,596,000 (or $1.25 per average share outstanding) for the nine-month period ended September 30, 2009. Third quarter 2010 earnings increased 9.95%, or $126,000, and first nine months earnings increased 14.66%, or $527,000.

President/Chief Executive Officer Gregg E. Hunter commented, "Loan demand from qualified borrowers remains slack reflecting a persistently weak economy despite unprecedented Federal Reserve and governmental intervention. Nonetheless, loan portfolio credit quality remains quite high as evidenced by no needed loan loss provisions thus far in 2010. Core deposit growth for 2010 has been notable and that growth was accompanied by very favorable and significant declines in non-core funding utilization. The deposit base is exceedingly well-diversified. At third quarter-end, the $125.9 million book value bond portfolio had a 6.26% tax equivalent yield and over $8.6 million in net unrealized market value gains over book. The bond portfolio consistently provides an ample source of earnings and liquidity for effective net interest margin management. Capital has been materially strengthened over the past several years. Third quarter-end 2010 tier one risk-based, total risk-based and leverage capital ratios were 19.4%, 20.2% and 11.4% respectively. The Company continues to be solidly-fortified to successfully weather historically uncertain economic times and to maintain its very attractive quarterly cash dividend payments to shareholders."

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates 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)












September


September





2010


2009








ASSETS






Cash and due from banks on demand


$                      7,883


$                      7,491

Interest bearing deposits with banks


49


3


Total cash and cash equivalents


7,932


7,494








Securities available for sale


134,575


133,736

Restricted investments in bank stock


4,567


4,567








Loans



197,065


205,289


Allowance for loan losses


(1,686)


(1,798)



Net loans


195,379


203,491








Premises and equipment


3,405


3,453

Other assets


19,346


17,687









Total assets


$                  365,204


$                  370,428








LIABILITIES AND SHAREHOLDERS' EQUITY





Liabilities:







Deposits:







Non-interest bearing


$                    80,454


$                    76,295



Interest bearing


195,320


187,886



Total deposits


275,774


264,181









Short-term borrowings


28,375


49,850


Long-term borrowings


10,000


10,000


Other liabilities


4,236


3,832



Total liabilities


318,385


327,863








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 2010 and 2009.


7,200


7,200
















Retained earnings


46,459


43,320









Accumulated other comprehensive income


5,704


4,589









Less treasury stock, at cost,






739,047 shares in 2010 and 2009


(12,544)


(12,544)



Total shareholders' equity


46,819


42,565










Total liabilities and shareholders' equity


$                  365,204


$                  370,428



COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)
















Three Months


Nine Months





Ended September 30


Ended September 30





2010


2009


2010


2009












INTEREST INCOME:










Interest and fees on loans


$               2,826


$               2,982


$               8,600


$               9,092


Interest and dividends on securities:











Taxable


1,031


1,619


3,519


5,340



Exempt from federal income taxes


668


229


1,706


275



Other


-


1


2


3


Total Interest income


4,525


4,831


13,827


14,710












INTEREST EXPENSE:










Interest on deposits


566


723


1,849


2,397


Interest on short-term borrowings


35


48


112


153


Interest on long-term borrowings


59


266


177


839


Total Interest expense


660


1,037


2,138


3,389












NET INTEREST INCOME


3,865


3,794


11,689


11,321

PROVISION FOR LOAN LOSSES


-


-


-


-












NET INTEREST INCOME AFTER









PROVISION FOR LOAN LOSSES


3,865


3,794


11,689


11,321












OTHER OPERATING INCOME:










Asset management and trust income


280


221


709


710


Service charges on deposit accounts


131


154


394


437


Other service charges and fees


183


188


574


566


Income from investment in life insurance


122


109


365


352


Other income


42


50


128


144


Total other operating income


758


722


2,170


2,209












OTHER OPERATING EXPENSES










Salaries and employee benefits


1,510


1,424


4,519


4,255


Net occupancy expense


212


220


638


629


Furniture and equipment


123


113


400


366


Pennsylvania shares tax


125


126


377


382


Legal and professional


110


104


349


348


FDIC Insurance expense


90


90


257


362


Other expenses


763


724


2,190


2,169


Total other operating expenses


2,933


2,801


8,730


8,511












INCOME BEFORE INCOME TAXES


1,690


1,715


5,129


5,019

Income tax expense


298


449


1,006


1,423













Net income


$               1,392


$               1,266


$               4,123


$               3,596












Average Shares Outstanding


2,860,953


2,861,083


2,860,953


2,868,152












Earnings Per Share


$                 0.49


$                 0.44


$                 1.44


$                 1.25



SOURCE Commercial National Financial Corporation



RELATED LINKS

http://www.cbthebank.com