LATROBE, Pa., April 18, 2012 /PRNewswire/ -- Commercial
National Financial Corporation (NASDAQ: CNAF) (Company), parent
Company of Commercial Bank & Trust of PA, has reported earnings
for the quarter ended March 31, 2012.
The Company earned $3,796,000 (or
$1.33 per average share outstanding)
in 2012 compared to $1,360,000 (or
$.48 per average share outstanding)
in 2011.
President and Chief Executive Officer Gregg E. Hunter noted, "First quarter 2012
earnings were greatly influenced by realized securities sale
related gains that were generated in early March as a by-product of
an asset/liability management rebalancing. The Company sold
$49.8 million in book value taxable
municipal bonds and $7.4 million in
book value tax-free municipal bonds. These municipal bond sales
resulted in a $3.2 million pre-tax
gain which equated to a $2.1 million
earnings benefit (or $0.74 per
average share outstanding). This action was based on several
factors. The main factor was a strategic decision to decrease the
Company's future market exposure by reducing the average maturity
of the bond portfolio. In addition, the Company determined the
potential future credit exposure associated with municipal bonds
should be reduced. These municipal bond sales provide the Company
with enhanced liquidity and flexibility going forward. The
municipal bond market experienced significant price appreciation
during the first two months of 2012, which provided the Company
with a unique opportunity to manage market and credit exposures
while also capturing unprecedented gains within earnings and
capital. The Company's core earnings not including the bond sale
gains were $1,693,000 (or
$.59 per average share outstanding).
Commercial National's strong core earnings, solid asset
quality and sizable capital base continue to be well-supportive of
its regular quarterly common stock cash dividend payments to
shareholders."
In addition to Latrobe,
Pennsylvania where it is headquartered, the Company operates
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)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and
due from banks on demand
|
|
$
3,004
|
|
$
5,318
|
Interest
bearing deposits with banks
|
|
44,321
|
|
3
|
|
|
|
|
47,325
|
|
5,321
|
|
|
|
|
|
|
|
Securities
available for sale
|
|
128,271
|
|
136,795
|
Restricted
investments in bank stock
|
|
3,357
|
|
4,122
|
|
|
|
|
|
|
|
Loans
|
|
|
172,730
|
|
190,040
|
|
Allowance
for loan losses
|
|
(1,679)
|
|
(1,686)
|
|
|
Net
loans
|
|
171,051
|
|
188,354
|
|
|
|
|
|
|
|
Premises
and equipment
|
|
3,066
|
|
3,258
|
Investment
in life insurance
|
|
16,140
|
|
15,594
|
Other
assets
|
|
3,439
|
|
12,242
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
372,649
|
|
$
365,686
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Non-interest bearing
|
|
$
96,687
|
|
$
82,098
|
|
|
Interest
bearing
|
|
216,871
|
|
207,898
|
|
|
Total
deposits
|
|
313,558
|
|
289,996
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
-
|
|
7,275
|
|
Long-term
borrowings
|
|
-
|
|
10,000
|
|
Other
liabilities
|
|
4,533
|
|
11,387
|
|
|
Total
liabilities
|
|
318,091
|
|
318,658
|
|
|
|
|
|
|
|
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 2012 and 2011
|
|
7,200
|
|
7,200
|
|
Retained
earnings
|
|
54,226
|
|
47,937
|
|
Accumulated other comprehensive income
|
|
5,676
|
|
4,435
|
|
Treasury
stock, at cost, 739,047 shares
|
|
|
|
|
|
|
in
2012 and 2011
|
|
(12,544)
|
|
(12,544)
|
|
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
54,558
|
|
47,028
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
$
372,649
|
|
$
365,686
|
COMMERCIAL
NATIONAL FINANCIAL CORPORATION
|
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
(Dollars
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Three
Months Ended
|
|
|
|
|
March
31,
|
|
|
March
31,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
Interest
and fees on loans
|
$
2,429
|
|
|
$
2,717
|
|
|
Interest
and dividends on securities:
|
|
|
|
|
|
|
|
Taxable
|
1,158
|
|
|
923
|
|
|
|
Exempt
from federal income taxes
|
963
|
|
|
728
|
|
|
|
Other
|
10
|
|
|
-
|
|
|
Total
Interest income
|
4,560
|
|
|
4,368
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Interest
on deposits
|
343
|
|
|
485
|
|
|
Interest
on short term borrowings
|
14
|
|
|
18
|
|
|
Interest
on long term borrowings
|
1
|
|
|
59
|
|
|
Total
Interest expense
|
358
|
|
|
562
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME
|
4,202
|
|
|
3,806
|
|
PROVISION
FOR LOAN LOSSES
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME AFTER
|
|
|
|
|
|
PROVISION
FOR LOAN LOSSES
|
4,202
|
|
|
3,806
|
|
|
|
|
|
|
|
|
|
OTHER
OPERATING INCOME
|
|
|
|
|
|
|
Asset
management and trust income
|
240
|
|
|
252
|
|
|
Service
charges on deposit accounts
|
262
|
|
|
255
|
|
|
Net
Security gains
|
3,186
|
|
|
|
|
|
Income
from investment in life insurance
|
119
|
|
|
123
|
|
|
Other
income
|
114
|
|
|
64
|
|
|
Total
other operating income
|
3,921
|
|
|
694
|
|
|
|
|
|
|
|
|
|
OTHER
OPERATING EXPENSES
|
|
|
|
|
|
|
Salaries
and employee benefits
|
1,654
|
|
|
1,585
|
|
|
Net
occupancy expense
|
218
|
|
|
214
|
|
|
Furniture
and equipment
|
91
|
|
|
109
|
|
|
Pennsylvania shares tax
|
126
|
|
|
126
|
|
|
Legal and
professional
|
81
|
|
|
93
|
|
|
FDIC
Insurance
|
48
|
|
|
87
|
|
|
Other
expenses
|
714
|
|
|
675
|
|
|
Total
other operating expenses
|
2,932
|
|
|
2,889
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES
|
5,191
|
|
|
1,611
|
|
Income tax
expense
|
1,395
|
|
|
251
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
3,796
|
|
|
$
1,360
|
|
|
|
|
|
|
|
|
|
Average
Shares Outstanding
|
2,860,953
|
|
|
2,860,953
|
|
|
|
|
|
|
|
|
|
Earnings
Per Share
|
$
1.33
|
|
|
$
0.48
|
|
SOURCE Commercial National Financial Corporation