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