COMMERCIAL NATIONAL FINANCIAL CORPORATION LATROBE, Pa., Nov. 4, 2015 /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, 2015. The Company earned $628,000 (or $0.22 per average share outstanding) in the third quarter 2015 compared to $1,534,000 (or $0.54 per average share outstanding) in the third quarter 2014. The Company earned $4,615,000 (or $1.61 per average share outstanding) for the nine-month period ended September 30, 2015 and $4,802,000 (or $1.68 per average share outstanding) for the nine-month period ended September 30, 2014. The Company's annualized return on average assets and average equity were 0.65% and 4.71%, respectively, for the quarter ended September 30, 2015 compared to 1.54% and 11.63%, respectively, for the quarter ended September 30, 2014. The Company's annualized return on average assets and average equity for the nine month period ended September 30, 2015 were 1.61% and 10.94%, respectively, compared to 1.62% and 12.27%, respectively, for the nine month period ended September 30, 2014. Third quarter book earnings reflect a non-cash $368,000 income tax valuation adjustment which was accompanied by a $341,000 income tax cash refund resulting from the carry-back of a 2014 book tax position asset against the 2012 fiscal year filed tax return. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for September 30, 2015 were 21.78%, 22.45%, 13.53% and 21.78%, respectively.
President and Chief Executive Officer, Gregg E. Hunter noted, "The community banking franchise has recorded steady expansion since year-end 2014 as demonstrated by non-interest bearing checking deposit footings growth of 7.18% and loan portfolio growth of 7.46%. The Company's atypical funding base, with non-interest bearing checking deposits of $113.3 million relative to $393.5 million in total assets, compliments the aggregate optionality of total earning assets. Loan portfolio credit quality remains outstanding with 2015's third quarter representing the thirty-first consecutive fiscal quarter without the need for any loan loss provisioning - a time span of nearly eight years. Core earnings, as evidenced by FDIC tabulated net interest margins of 4.57% for 2015's third quarter and 4.66% for 2015's first nine months, remain favorable. In addition, on a linked sequential quarter basis actual net interest income generation has improved from $3,371,000 in 2015's first quarter to $3,471,000 in 2015's second quarter and $3,573,000 in 2015's third quarter. The Company's substantial capital position, outstanding asset quality and favorable core earnings diagnostics continue to be supportive of the regular $0.26 per share quarterly common stock cash dividend payments to our shareholders. Maintaining an attractive and reliable cash dividend income stream to our shareholders is a top priority for the Company."
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,
2015 2014 2014
ASSETS
Cash and due from banks on demand $7,195 $5,286 $7,584
Interest bearing deposits with banks 47 90 6,804
--- --- -----
Total cash and cash equivalents 7,242 5,376 14,388
Securities available for sale 178,932 187,070 187,053
Restricted investments in bank stock 714 722 1,081
--- --- -----
Loans 184,003 171,224 171,141
Allowance for loan losses (1,617) (1,616) (1,616)
Net loans 182,386 169,608 169,525
Premises and equipment 3,191 3,207 3,310
Investment in Life Insurance 18,002 17,650 17,460
Other assets 3,028 3,886 4,487
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Total assets $393,495 $387,519 $397,304
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $113,309 $105,717 $107,141
Interest bearing 206,012 207,669 213,033
------- ------- -------
Total deposits 319,321 313,386 320,174
Short-term borrowings 18,776 12,225 17,581
Other liabilities 1,757 3,603 3,003
Total liabilities 339,854 329,214 340,758
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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 7,200
Retained earnings 57,776 58,254 57,591
Accumulated other comprehensive
income 1,209 5,395 4,299
Less treasury stock, at cost, 739,047
shares in 2015 and 2014 (12,544) (12,544) (12,544)
Total shareholders' equity 53,641 58,305 56,546
------ ------ ------
Total liabilities and shareholders' equity $393,495 $387,519 $397,304
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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
2015 2014 2015 2014
(unaudited) (unaudited) (unaudited) (unaudited)
---------- ---------- ---------- ----------
INTEREST INCOME:
Interest and fees on loans $1,975 $1,938 $5,886 $5,752
Interest and dividends on
securities:
Taxable 623 198 1,398 651
Exempt from federal income taxes 1,081 1,698 3,390 5,239
Other 2 15 63 41
Total Interest income 3,681 3,849 10,737 11,683
INTEREST EXPENSE:
Interest on deposits 96 135 307 440
Interest on short-term borrowings 12 18 15 58
Total Interest expense 108 153 322 498
NET INTEREST INCOME 3,573 3,696 10,415 11,185
PROVISION FOR LOAN LOSSES - - - -
--- --- --- ---
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,573 3,696 10,415 11,185
----- ----- ------ ------
OTHER OPERATING INCOME:
Asset management and trust income 301 283 1,061 844
Service charges on deposit
accounts 227 249 676 733
Net Security gains 15 - 3,605 14
Income from investment in life
insurance 118 120 352 348
Other income 41 45 183 201
Total other operating income 702 697 5,877 2,140
OTHER OPERATING EXPENSES:
Salaries and employee benefits 1,758 1,730 5,273 5,276
Net occupancy expense 190 219 632 660
Furniture and equipment 128 99 387 302
Pennsylvania shares tax 133 102 380 303
Legal and professional 95 66 301 226
FDIC insurance expense 48 48 144 144
Other expenses 754 767 2,158 2,121
Total other operating expenses 3,106 3,031 9,275 9,032
INCOME BEFORE INCOME TAXES 1,169 1,362 7,017 4,293
Income tax expense (benefit) 541 (172) 2,402 (509)
--- ---- ----- ----
Net income $628 $1,534 $4,615 $4,802
Average Shares Outstanding 2,860,953 2,860,953 2,860,953 2,860,953
Earnings Per Share $0.22 $0.54 $1.61 $1.68
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SOURCE Commercial National Financial Corporation
