COMMERCIAL NATIONAL FINANCIAL CORPORATION LATROBE, Pa., Jan. 29, 2016 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended December 31, 2015. The Company earned $1,073,000 (or $0.38 per average share outstanding) in the fourth quarter 2015 compared to $1,410,000 (or $0.49 per average share outstanding) in the fourth quarter 2014. The Company earned $5,688,000 (or $1.99 per average share outstanding) for the twelve-month period ended December 31, 2015 and $6,210,000 (or $2.17 per average share outstanding) for the twelve-month period ended December 31, 2014. The Company's annualized return on average assets and average equity were 1.09% and 7.70%, respectively, for the quarter ended December 31, 2015 compared to 1.45% and 9.81%, respectively, for the quarter ended December 31, 2014. The Company's annualized return on average assets and average equity for the twelve-month period ended December 31, 2015 were 1.48% and 10.23%, respectively, compared to 1.58% and 11.61%, respectively, for the twelve-month period ended December 31, 2014. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for December 31, 2015 were 21.96%, 22.63%, 13.42% and 21.96%, respectively.
President and Chief Executive Officer, Gregg E. Hunter noted, "Core earnings, as evidenced by FDIC tabulated net interest margins of 4.59% for 2015's fourth quarter and 4.64% for full year 2015, remain strong. On a linked sequential quarter basis actual net interest income generation substantially improved throughout 2015 from $3,371,000 in the first quarter to $3,611,000 in the fourth quarter. Asset quality continues to be outstanding with 2015 representing the eighth consecutive year without any need for loan loss provisioning - a time span that encompassed the worst depths of the financial crisis driven Great Recession. The Company's underlying core earnings in conjunction with its solid capital base provide ample capacity to maintain the regular $0.26 per share quarterly common stock cash dividend to shareholders. The special extra dividend of $1.00 per share which was paid in May 2015 was based on atypically favorable multi-year results being supplemented by sizeable current year realized net securities sale related gains in much the same manner as the previous $1.00 per share special cash dividend of December 2012. Providing an attractive and reliable cash dividend income stream to all our shareholders through the safe and sound operation of this bank is a long-standing top priority for the Company. In this regard, Commercial National Financial Corporation's actions over an extended number of years stand as concrete testament to its delivering on that priority."
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.
As disclosed each year in the Annual Report to Shareholders, on December 31, 2015, the Company employed 110 people in full-time and part-time positions. Fifty-six (56) employees are represented by the United Auto Workers, Local 1799. The Company has had unionized employees since 1972. In 2013, the Company and the bargaining unit entered into a labor agreement that will expire in February 2019. The Commonwealth of Pennsylvania and the National Labor Relations Board both afford protection to the organized status of pre-existing collective bargaining units. The Company has been advised that bargaining unit status may limit the Company's strategic options relative to those of non-unionized insured depository institutions. The Company continues to consider this as a factor in its strategic and capital management decisions.
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)
December 31 December 31
2015 2014
---- ----
ASSETS
Cash and due from banks on demand $6,092 $5,286
Interest bearing deposits with banks 3,032 90
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Total cash and cash equivalents 9,124 5,376
Securities available for sale 184,442 187,070
Restricted investments in bank stock 992 722
Loans 182,751 171,223
Allowance for loan losses (1,603) (1,616)
Net loans 181,148 169,607
Premises and equipment 3,298 3,207
Investment in Life Insurance 18,181 17,650
Other assets 2,317 3,887
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Total assets $399,502 $387,519
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $115,197 $105,717
Interest bearing 204,716 207,669
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Total deposits 319,913 313,386
Short-term borrowings 22,158 12,225
Other liabilities 2,311 3,603
Total liabilities 344,382 329,214
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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 shares
outstanding in 2015 and 2014. 7,200 7,200
Retained earnings 58,106 58,254
Accumulated other comprehensive income 2,358 5,395
Less treasury stock, at cost,
739,047 shares in 2015 and 2014 (12,544) (12,544)
Total shareholders' equity 55,120 58,305
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Total liabilities and shareholders'
equity $399,502 $387,519
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COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Twelve Months
Ended December 31 Ended December 31
2015 2014 2015 2014
---- ---- ---- ----
INTEREST INCOME:
Interest and fees on loans $1,962 $1,915 $7,848 $7,667
Interest and dividends on
securities:
Taxable 687 182 2,085 833
Exempt from federal income
taxes 1,064 1,472 4,454 6,711
Other 8 13 71 54
--- --- --- ---
Total Interest income 3,721 3,582 14,458 15,265
INTEREST EXPENSE:
Interest on deposits 91 129 398 569
Interest on short-term borrowings 19 16 34 74
Total Interest expense 110 145 432 643
NET INTEREST INCOME 3,611 3,437 14,026 14,622
PROVISION FOR LOAN LOSSES - - - -
--- --- --- ---
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,611 3,437 14,026 14,622
----- ----- ------ ------
OTHER OPERATING INCOME:
Asset management and trust income 295 298 1,356 1,142
Service charges on deposit accounts 218 243 894 976
Net Security gains (loss) - 7 3,605 21
Income from investment in life
insurance 137 149 489 497
Other income 43 39 226 240
Total other operating income 693 736 6,570 2,876
OTHER OPERATING EXPENSES
Salaries and employee benefits 1,745 1,741 7,018 7,017
Net occupancy expense 204 193 836 853
Furniture and equipment 142 201 529 503
Pennsylvania shares tax 132 101 512 404
Legal and professional 112 114 413 340
FDIC Insurance expense 36 48 180 192
Other expenses 662 589 2,820 2,710
Total other operating expenses 3,033 2,987 12,308 12,019
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INCOME BEFORE INCOME TAXES 1,271 1,186 8,288 5,479
Income tax expense (benefit) 198 (224) 2,600 (731)
--- ---- ----- ----
Net income $1,073 $1,410 $5,688 $6,210
Average Shares Outstanding 2,860,953 2,860,953 2,860,953 2,860,953
Earnings Per Share 0.38 0.49 1.99 2.17
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SOURCE Commercial National Financial Corporation
