Commercial National Reports September 30, 2013 Results

Commercial National Reports September 30, 2013 Results

Australian Business

LATROBE, Pa., Oct. 25, 2013 /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, 2013. The Company earned $1,361,000 (or $0.47 per average share outstanding) in the third quarter 2013 compared to $1,074,000 (or $0.38 per average share outstanding) in the third quarter 2012. The Company earned $3,811,000 (or $1.33 per average share outstanding) for the nine-month period ended September 30, 2013 and $6,089,000 (or $2.13 per average share outstanding) for the nine-month period ended September 30, 2012. The Company's annualized return on average assets and average equity were 1.48% and 12.25%, respectively, for the quarter ended September 30, 2013 compared to 1.16% and 7.70%, respectively, for the quarter ended September 30, 2012. The Company's annualized return on average assets and average equity for the nine month period ended September 30, 2013 were 1.36% and 10.20%, respectively, compared to 2.14% and 14.74%, respectively, for the nine month period ended September 30, 2012. Tier one risk-based, total risk-based and leverage capital ratios for September 30, 2013 were 22.10%, 22.82% and 13.05%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Third quarter 2013 earnings of $1,361,000 represented a $287,000, or 26.72%, increase above the $1,074,000 in earnings produced during 2012's third quarter. Comparative earnings for the first nine months of 2013 reflect the $3,317,000 in net realized securities gains generated during 2012's first nine months. The Company's strong core profitability, ample regulatory capital adequacy, exceptional asset quality and uncommon tax efficiency continue to greatly surpass prevailing banking industry standards and all solidly support the regular $0.26 per share common stock quarterly cash dividend payments to our 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)
September 30,	December 31,	September 30,
2013	2012	2012
ASSETS
Cash and due from banks on demand			$ 8,169	$ 6,468	$ 6,729
Interest bearing deposits with banks			114	32,113	56,320
Total cash and cash equivalents		8,283	38,581	63,049
Securities available for sale			176,814	141,321	117,540
Restricted investments in bank stock			893	2,506	2,884
Loans		162,882	168,886	170,332
Allowance for loan losses		(1,597)	(1,649)	(1,652)
Net loans	161,285	167,237	168,680
Premises and equipment			3,163	3,136	3,146
Investment in Life Insurance			16,924	16,562	16,387
Other assets			13,491	3,719	4,320
Total assets		$ 380,853	$ 373,062	$ 376,006
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing	$ 102,711	$ 103,437	$ 99,738
Interest bearing	207,971	213,020	216,305
Total deposits	310,682	316,457	316,043
Short-term borrowings		16,300	-	-
Other liabilities		8,588	3,839	4,077
Total liabilities	335,570	320,296	320,120
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 2013 and 2012
		7,200	7,200	7,200
		Retained earnings		54,183	52,604	55,032
Accumulated other comprehensive income		(3,556)	5,506	6,198
Less treasury stock, at cost, 739,047 shares in 2013 and 2012		(12,544)	(12,544)	(12,544)
Total shareholders' equity	45,283	52,766	55,886
Total liabilities and shareholders' equity	$ 380,853	$ 373,062	$ 376,006

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
2013	2012	2013	2012
(unaudited)	(unaudited)	(unaudited)	(unaudited)
INTEREST INCOME:
Interest and fees on loans		$ 1,858	$ 2,243	$ 5,941	$ 6,954
Interest and dividends on securities:
Taxable	298	534	1,105	2,269
Exempt from federal income taxes	1,535	849	3,849	2,695
Other		4	28	30	68
Total Interest income		3,695	3,654	10,925	11,986
INTEREST EXPENSE:
Interest on deposits		179	277	620	924
Interest on short-term borrowings		3	-	3	16
Interest on long-term borrowings		-	-	-	1
Total Interest expense		182	277	623	941
NET INTEREST INCOME			3,513	3,377	10,302	11,045
PROVISION FOR LOAN LOSSES			-	-	-	-
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES			3,513	3,377	10,302	11,045
OTHER OPERATING INCOME:
Asset management and trust income		241	232	724	706
Service charges on deposit accounts		268	273	784	818
Net Security gains		(5)	122	52	3,317
Income from investment in life insurance		127	125	362	366
Other income		74	45	225	198
Total other operating income		705	797	2,147	5,405
OTHER OPERATING EXPENSES:
Salaries and employee benefits		1,702	1,567	5,079	4,782
Net occupancy expense		210	188	641	616
Furniture and equipment		58	81	286	266
Pennsylvania shares tax		141	125	417	377
Legal and professional		72	84	198	247
FDIC insurance expense		45	48	133	144
Other expenses		762	949	2,059	2,361
Total other operating expenses		2,990	3,042	8,813	8,793
INCOME BEFORE INCOME TAXES			1,228	1,132	3,636	7,657
Income tax expense (benefit)			(133)	58	(175)	1,568
Net income		$ 1,361	$ 1,074	$ 3,811	$ 6,089
Average Shares Outstanding			2,860,953	2,860,953	2,860,953	2,860,953
Earnings Per Share			$ 0.47	$ 0.38	$ 1.33	$ 2.13

SOURCE Commercial National Financial Corporation