Commercial National Reports 28.6% Fourth Quarter and 31.6% Year-End 2009 Earnings Per Share Increases
LATROBE, Pa., Feb. 8 /PRNewswire-FirstCall/ -- Commercial National Financial Corporation (Nasdaq: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the year ended December 31, 2009. The Company earned $5,129,000 (or $1.79 per average share outstanding) compared to $4,024,000 (or $1.36 per average share outstanding) in 2008. Earnings for the fourth quarter of 2009 were $1,533,000 (or $.54 per average share outstanding) compared to $1,222,000 (or $.42 per average share outstanding) for the same period in 2008.
Gregg E. Hunter, President and Chief Executive Officer noted, "Year-end 2009 post-tax net income for Commercial National Financial Corporation surged to $5,129,000. Year-end 2008 post-tax net income was $4,024,000 and year-end 2007 post-tax net income was $3,065,000. Consequently, 2009's earnings were $1,105,000, or 27.46%, higher than those of 2008 and $2,064,000, or 67.34%, higher than those of 2007. Earnings per share for 2009 were 31.62% higher than in 2008 and 77.23% higher than in 2007."
Mr. Hunter added, "The earnings achievements of 2009 were directly attributable to solid asset quality amidst a deteriorating economy, successful net interest margin management relative to historically unprecedented prevailing financial market conditions and strict adherence to tight, common sense non-interest expense cost containment in the face of drastic FDIC deposit insurance assessment escalation. Commercial National Financial Corporation's 2009 year-end financial condition and financial performance are atypically strong relative to the banking industry as a whole which remains deeply troubled as evidenced by 140 bank failures during 2009 and by over 500 additional banks being on the FDIC's growing confidential problem bank watch list. In contrast, Commercial National Financial Corporation remains characterized by a high degree of comprehensive fundamental soundness."
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, except per share data)
December 31 December 31
2009 2008
---- ----
ASSETS
Cash and due from banks $6,610 $7,111
Interest bearing deposits with banks 131 21
--- --
6,741 7,132
Securities available for sale 138,918 114,771
Restricted investments in bank stock 4,567 3,967
Loans 205,092 215,933
Allowance for loan losses (1,722) (1,821)
------ ------
Net loans 203,370 214,112
Premises and equipment 3,548 3,549
Other assets 18,860 16,968
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Total assets $376,004 $360,499
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $74,260 $67,067
Interest bearing 195,470 190,020
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Total deposits 269,730 257,087
Other liabilities 3,932 3,169
Short-term borrowings 48,850 31,175
Long-term borrowings 10,000 30,000
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Total liabilities 332,512 321,431
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Shareholders' equity
Common stock, par value $2 per share;
10,000,000 shares authorized; 3,600,000
shares issued; 2,860,953 and 2,880,953
shares outstanding in 2009 and 2008,
respectively 7,200 7,200
Retained earnings 44,223 41,616
Accumulated other comprehensive income 4,613 2,490
Less treasury stock, at cost, 739,047 and
719,047 shares in 2009 and 2008,
respectively (12,544) (12,238)
------- -------
Total shareholders' equity 43,492 39,068
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Total liabilities and shareholders' equity $376,004 $360,499
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COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
Three Months Year
Ended December 31 Ended December 31
2009 2008 2009 2008
---- ---- ---- ----
INTEREST INCOME:
Interest and fees on loans $2,949 $3,216 $12,041 $13,083
Interest and dividends on
securities:
Taxable 1,469 1,757 6,809 6,349
Exempt from federal income
taxes 368 27 643 127
Other - 2 3 28
--- -- -- --
Total Interest income 4,786 5,002 19,496 19,587
INTEREST EXPENSE:
Interest on deposits 686 918 3,083 4,669
Interest on short-term
borrowings 47 74 200 460
Interest on long-term
borrowings 60 254 899 921
-- --- --- ---
Total Interest expense 793 1,246 4,182 6,050
--- ----- ----- -----
NET INTEREST INCOME 3,993 3,756 15,314 13,537
PROVISION FOR LOAN LOSSES - 15 - 15
--- -- --- --
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,993 3,741 15,314 13,522
OTHER OPERATING INCOME:
Asset management and trust
income 215 241 925 1,011
Service charges on deposit
accounts 146 159 583 631
Other service charges and fees 187 189 753 738
Net security gains - (76) - (76)
Income from investment in
life insurance 158 167 586 601
Other income 77 53 221 190
-- -- --- ---
Total other operating income 783 733 3,068 3,095
--- --- ----- -----
OTHER OPERATING EXPENSES
Salaries and employee benefits 1,469 1,474 5,724 5,745
Net occupancy expense 190 179 819 741
Depreciation and amortization
expense 159 148 525 551
Pennsylvania shares tax 125 132 507 530
Legal and Professional 37 70 385 427
FDIC insurance 90 11 452 39
Other expenses 690 755 2,935 2,973
--- --- ----- -----
Total other operating expenses 2,760 2,769 11,347 11,006
----- ----- ------ ------
INCOME BEFORE INCOME TAXES 2,016 1,705 7,035 5,611
Income tax expense 483 483 1,906 1,587
--- --- ----- -----
Net income $1,533 $1,222 $5,129 $4,024
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Average Shares Outstanding 2,860,953 2,885,515 2,866,338 2,949,810
Net Income Per Share $0.54 $0.42 $1.79 $1.36
SOURCE Commercial National Financial Corporation
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