Back to Newsroom
Back to Newsroom

Commercial National Reports Strong June 30, 2020 Earnings Increases

Thursday, 09 July 2020 02:30 PM

Commercial National Financial Corporation

Topic:
Earnings

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

Topic:
Earnings
Back to newsroom
Back to Newsroom
Share by: