Baystreet Staff -

Commercial National Reports Strong June 30, 2020 Earnings Increases

[ACCESSWIRE]

LATROBE, PA / ACCESSWIRE / July 9, 2020 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended June 30, 2020. The Company earned $1,452,000 (or $0.51 per average share outstanding) in the second quarter 2020 compared to $1,032,000 (or $0.36 per average share outstanding) in the second quarter of 2019. The Company earned $3,268,000 (or $1.14 per average share outstanding) for the six-month period ended June 30, 2020 and $2,240,000 (or $0.78 per average share outstanding) for the six-month period ended June 30, 2019.

Second quarter 2020 earnings increased $420,000, or 41%, while six-month 2020 earnings increased $1,028,000, or 46%. The Company's strong capital position in conjunction with recent core earnings results currently remain supportive of the regular $0.26 quarterly common stock cash dividend payments to shareholders. Providing an attractive and reliable cash dividend income stream to all our shareholders through the safe and sound operation of the subsidiary bank is a long-standing top priority for the Company.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 481,669 shares, or 16.84% on June 30, 2020.

As disclosed each year in the Annual Report to Shareholders, on June 30, 2020, the Company employed 83 people in full-time and part-time positions. Thirty-two (32) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, Thirty-one (31) employees are full-time and there is one (1) active part-time employee. The Company has had unionized employees since 1972. In October 2018, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 16, 2019. The labor agreement will expire in February 2024. 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.

The Company operates nine community banking facilities in Greensburg, Hempfield Township, Latrobe, 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,
2020 2019 2019
ASSETS
Cash and due from banks on demand
 $8,497 $4,510 $4,730
Interest bearing deposits with banks
 615 47 2,081
Total cash and cash equivalents
 9,112 4,557 6,811
Securities available for sale
 143,102 150,838 162,326
Restricted investments in bank stock
 752 899 1,656
Loans
 254,932 238,407 230,469
Allowance for loan losses
 (2,069) (1,374) (1,374)
Net loans
 252,863 237,033 229,095
Premises and equipment
 2,797 2,618 2,756
Investment in Life Insurance
 18,819 20,310 20,034
Other assets
 3,917 3,319 3,792
Total assets
 $431,362 $419,574 $426,470
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing
 $148,316 $133,362 $128,333
Interest bearing
 196,672 198,986 188,714
Total deposits
 344,988 332,348 317,047
Short-term borrowings
 15,047 20,200 41,684
Other liabilities
 4,811 4,102 2,622
Total liabilities
 364,846 356,650 361,353
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 2020 and 2019
Common stock, par value $2 per share; 10,000,000 shares authorized; 3,600,000 shares issued; 2,860,953 shares outstanding in 2020 and 2019
 7,200 7,200 7,200
Retained earnings
 62,335 60,554 63,838
Accumulated other comprehensive (loss) income
 9,525 7,714 6,623
Less treasury stock, at cost, 739,047 shares in 2020 and 2019
 (12,544) (12,544) (12,544)
Total shareholders' equity
 66,516 62,924 65,117
Total liabilities and shareholders' equity
 $431,362 $419,574 $426,470

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
2020 2019 2020 2019
(unaudited) (unaudited) (unaudited) (unaudited)
INTEREST INCOME:
Interest and fees on loans
 $ 2,754 $ 2,582 $ 5,360 $ 5,173
Interest and dividends on securities:
Taxable
 1,028 1,047 2,065 2,098
Exempt from federal income taxes
 347 538 740 1,097
Other
 10 29 34 63
Total Interest income
 4,139 4,196 8,199 8,431
INTEREST EXPENSE:
Interest on deposits
 114 190 273 377
Interest on short-term borrowings
 19 257 139 509
Total Interest expense
 133 447 412 886
NET INTEREST INCOME
 4,006 3,749 7,787 7,545
PROVISION FOR LOAN LOSSES
 400 - 400 -
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
 3,606 3,749 7,387 7,545
OTHER OPERATING INCOME:
Asset management and trust income
 335 331 678 671
Service charges on deposit accounts
 143 185 303 354
Net Security gains/ losses
 505 (4) 505 (7)
Gain on sale of OREO
 - - - 4
Income from investment in life insurance
 117 124 228 250
Life insurance proceeds
 - - 730 -
Other income
 28 36 100 100
Total other operating income
 1,128 672 2,544 1,372
OTHER OPERATING EXPENSES:
Salaries and employee benefits
 1,864 1,906 3,828 3,773
Net occupancy expense
 189 202 401 420
Furniture and equipment
 112 108 208 214
Pennsylvania shares tax
 142 142 284 284
Legal and professional
 109 97 210 175
FDIC insurance expense
 12 28 12 56
Other expenses
 591 780 1,300 1,543
Total other operating expenses
 3,019 3,263 6,243 6,465
INCOME BEFORE INCOME TAXES
 1,715 1,158 3,688 2,452
Income tax expense
 263 126 420 212
Net income
 $ 1,452 $ 1,032 $ 3,268 $ 2,240
Average Shares Outstanding
 2,860,953 2,860,953 2,860,953 2,860,953
Earnings Per Share
 $ 0.51 $ 0.36 $ 1.14 $ 0.78

Contact Information:

Wendy S. Piper
First Senior Vice President
Secretary/Treasurer
[email protected]
724-537-9923

SOURCE: Commercial National Financial Corporation



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