COMMERCIAL NATIONAL FINANCIAL CORPORATION 
By 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
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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
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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
