COMMERCIAL NATIONAL FINANCIAL CORPORATION LATROBE, Pa., July 28, 2015 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for June 30, 2015. The Company earned $2,390,000(or $0.83 per average share outstanding) in the second quarter 2015 compared to $1,655,000 (or $0.58 per average share outstanding) in the second quarter 2014. The Company earned $3,987,000 (or $1.39 per average share outstanding) for the six-month period ended June 30, 2015 and $3,268,000 (or $1.14 per average share outstanding) for the six-month period ended June 30, 2014.
The Company's annualized return on average assets and average equity were 2.51% and 16.83%, respectively, for the quarter ended June 30, 2015 compared to 1.66% and 12.55%, respectively, for the quarter ended June 30, 2014. The Company's annualized return on average assets and average equity for the six-month period ended June 30, 2015 were 2.10% and 13.82%, respectively, compared to 1.65% and 12.39%, respectively, for the six-month period ended June 30, 2014. The Company recorded a deferred tax asset valuation allowance in the second quarter 2015, resulting in higher second quarter and six-month effective tax rates. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for June 30, 2015 were 22.00%, 22.68%, 13.85% and 22.00%, respectively.
President and Chief Executive Officer, Gregg E. Hunter noted, "Second quarter earnings increased $735,000, or 44.41%, while six-month earnings increased $719,000, or 22.00%. Thus far in 2015 meaningful profitability enhancements have been achieved with both the loan portfolio and the deposit base. Asset quality remains exceptional relative to prevailing banking industry norms as demonstrated by no required loan loss provisioning over the past thirty consecutive fiscal quarters. In 2015 the Company's trust revenues have surged by $199,000 which represents a 35.47% improvement. Prior to 2015's late second quarter bond market sell-off, significant realized securities gains were harvested at the beginning of April in order to fully benefit from the exceedingly strong bond market price rally of 2015's first quarter. This non-recurring income materially supplemented the Company's core earnings which were greatly influenced by various timing factors related to securities portfolio activities. The Company's core earnings in conjunction with its substantial capital base provide ample capacity to maintain the regular $0.26 per share quarterly common stock cash dividend payments to 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)
June 30, December 31, June 30,
2015 2014 2014
ASSETS
Cash and due from banks on demand $5,941 $5,286 $7,275
Interest bearing deposits with banks 927 90 62
--- --- ---
Total cash and
cash equivalents 6,868 5,376 7,337
Securities available for sale 174,462 187,070 194,331
Restricted investments in bank stock 682 722 1,386
--- --- -----
Loans 178,815 171,224 170,666
Allowance for
loan losses (1,616) (1,616) (1,619)
------ ------
Net loans 177,199 169,608 169,047
Premises and equipment 3,263 3,207 3,358
Investment in Life Insurance 17,884 17,650 17,339
Other assets 3,314 3,886 4,033
----- ----- -----
Total assets $383,672 $387,519 $396,831
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $111,150 $105,717 $102,948
Interest bearing 201,710 207,669 208,875
------- ------- -------
Total deposits 312,860 313,386 311,823
Short-term
borrowings 17,200 12,225 28,344
Other liabilities 1,465 3,603 2,342
Total liabilities 331,525 329,214 342,509
------- ------- -------
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 57,892 58,254 56,799
Accumulated other
comprehensive
(loss) income (401) 5,395 2,867
Less treasury
stock, at cost,
739,047 shares
in 2015 and 2014 (12,544) (12,544) (12,544)
------- -------
Total shareholders' equity 52,147 58,305 54,322
------ ------ ------
Total liabilities and
shareholders' equity $383,672 $387,519 $396,831
======== ======== ========
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Three Months Six Months
Ended June 30 Ended June 30
2015 2014 2015 2014
(unaudited) (unaudited) (unaudited) (unaudited)
---------- ---------- ---------- ----------
INTEREST INCOME:
Interest and
fees on
loans $1,978 $1,919 $3,911 $3,814
Interest and
dividends on
securities:
Taxable 543 215 775 453
Exempt from federal
income taxes 1,047 1,766 2,309 3,541
Other 6 17 61 26
Total
Interest
income 3,574 3,917 7,056 7,834
INTEREST EXPENSE:
Interest on
deposits 100 150 211 305
Interest on
short-term
borrowings 3 19 3 40
Interest on
long-term
borrowings - - - -
Total
Interest
expense 103 169 214 345
NET INTEREST INCOME 3,471 3,748 6,842 7,489
PROVISION FOR LOAN LOSSES - - - -
--- --- --- ---
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,471 3,748 6,842 7,489
----- ----- ----- -----
OTHER OPERATING INCOME:
Asset
management
and trust
income 426 284 760 561
Service
charges on
deposit
accounts 233 248 449 484
Net Security
gains 2,949 21 3,590 14
Income from
investment
in life
insurance 117 114 234 228
Other income 45 53 142 156
Total other
operating
income 3,770 720 5,175 1,443
OTHER OPERATING EXPENSES:
Salaries and
employee
benefits 1,684 1,739 3,515 3,546
Net occupancy
expense 211 212 442 441
Furniture and
equipment 157 102 259 203
Pennsylvania
shares tax 133 101 247 201
Legal and
professional 121 76 206 160
FDIC
insurance
expense 47 48 96 96
Other
expenses 715 691 1,404 1,354
Total other
operating
expenses 3,068 2,969 6,169 6,001
INCOME BEFORE INCOME TAXES 4,173 1,499 5,848 2,931
Income tax expense/benefit 1,783 (156) 1,861 (337)
----- ---- ----- ----
Net income $2,390 $1,655 $3,987 $3,268
Average Shares Outstanding 2,860,953 2,860,953 2,860,953 2,860,953
Earnings Per Share $0.83 $0.58 $1.39 $1.14
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SOURCE Commercial National Financial Corporation
