Commercial National Reports March 31, 2021 Earnings
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Commercial National Reports March 31, 2021 Earnings

Monday, May 3, 2021 11:10 AM
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LATROBE, PA / ACCESSWIRE / May 3, 2021 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2021. The Company earned $1,068,000 (or $0.37 per average share outstanding) in the first quarter 2021 compared to $1,816,000 (or $0.63 per average share outstanding) in the first quarter of 2020. Tax free life insurance proceeds of $730,000 favorably influenced first quarter 2020 earnings results.

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 460,362 shares, or 16.09% on March 31, 2021.

As disclosed each year in the Annual Report to Shareholders, on March 31, 2021, the Company employed 79 people in full-time and part-time positions. Twenty-nine (29) full-time employees are represented by the United Auto Workers, Local 1799. 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 eight community banking facilities in Greensburg, Hempfield Township, Latrobe, Ligonier, 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,     December 31,     March 31,  
 
  2021     2020     2020  
 
                 
ASSETS
                 
Cash and due from banks on demand
  $ 4,128     $ 3,744     $ 6,015  
Interest bearing deposits with banks
    33,396       24,596       191  
Cash and Cash Equivalents
    37,524       28,340       6,206  
 
                       
Securities available for sale
    128,615       133,317       145,670  
Restricted investments in bank stock
    148       148       1,211  
 
                       
Loans
    243,842       241,080       239,194  
Allowance for loan losses
    (1,991 )     (1,991 )     (1,663 )
Net loans
    241,851       239,089       237,531  
 
                       
Premises and equipment
    2,732       2,805       2,834  
Investment in life insurance
    19,201       19,070       18,695  
Other assets
    3,868       2,662       4,372  
 
                       
Total assets
  $ 433,939     $ 425,431     $ 416,519  
 
                       
LIABILITIES AND SHAREHOLDERS' EQUITY
                       
Liabilities
                       
Deposits
                       
Non-interest bearing
  $ 160,439     $ 148,398     $ 133,910  
Interest bearing
    202,764       203,001       192,618  
Total deposits
    363,203       351,399       326,528  
 
                       
Short-term borrowings
    -       -       25,375  
Other liabilities
    3,750       4,605       3,298  
Total liabilities
    366,953       356,004       355,201  
 
                       
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 2021 and 2020
    7,200       7,200       7,200  
Retained earnings
    63,616       63,292       61,626  
Accumulated other comprehensive income
    8,714       11,479       5,036  
Treasury stock, at cost, 739,047 shares
                       
in 2021 and 2020
    (12,544 )     (12,544 )     (12,544 )
 
                       
Total shareholders' equity
    66,986       69,427       61,318  
 
                       
Total liabilities and shareholders' equity
  $ 433,939     $ 425,431     $ 416,519  


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,  
 
  2021     2020  
 
           
INTEREST INCOME
           
Interest and fees on loans
  $ 2,515     $ 2,606  
Interest and dividends on securities:
               
Taxable
    985       1,037  
Exempt from federal income taxes
    228       393  
Other
    7       24  
Total Interest income
    3,735       4,060  
 
               
INTEREST EXPENSE
               
Interest on deposits
    57       159  
Interest on short term borrowings
    -       120  
Total Interest expense
    57       279  
 
               
NET INTEREST INCOME
    3,678       3,781  
PROVISION FOR LOAN LOSSES
    -       -  
 
               
NET INTEREST INCOME AFTER
               
PROVISION FOR LOAN LOSSES
    3,678       3,781  
 
               
OTHER OPERATING INCOME
               
Asset management and trust income
    358       343  
Service charges on deposit accounts
    166       160  
Net Security losses
    1       -  
Income from investment in life insurance
    123       111  
Life Insurance proceeds
    -       730  
Other income
    54       72  
Total other operating income
    702       1,416  
 
               
OTHER OPERATING EXPENSES
               
Salaries and employee benefits
    1,831       1,964  
Net occupancy expense
    222       212  
Furniture and equipment
    113       96  
Pennsylvania shares tax
    150       142  
Legal and professional
    101       101  
FDIC Insurance
    30       -  
Other expenses
    681       709  
Total other operating expenses
    3,128       3,224  
 
               
INCOME BEFORE INCOME TAXES
    1,252       1,973  
Income tax expense
    184       157  
 
               
Net income
  $ 1,068     $ 1,816  
 
               
Average Shares Outstanding
    2,860,953       2,860,953  
 
               
Earnings Per Share
  $ 0.37     $ 0.63  

CONTACT:

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

SOURCE: Commercial National Financial Corporation

Commercial National Financial Corporation
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