Commercial National Reports June 30, 2021 Earnings
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Commercial National Reports June 30, 2021 Earnings

Tuesday, July 27, 2021 3:35 PM
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LATROBE, PA / ACCESSWIRE / July 27, 2021 / Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended June 30, 2021. The Company earned $1,001,000 (or $0.35 per average share outstanding) in the second quarter 2021 compared to $1,452,000 (or $0.51 per average share outstanding) in the second quarter of 2020. The Company earned $2,069,000 (or $0.72 per average share outstanding) for the six-month period ended June 30, 2021 and $3,268,000 (or $1.14 per average share outstanding) for the six-month period ended June 30, 2020. Pre-tax realized securities gains of $505,000 and tax free life insurance proceeds of $730,000 favorably influenced 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 468,212 shares, or 16.37% on June 30, 2021.

As disclosed each year in the Annual Report to Shareholders, on June 30, 2021, the Company employed 81 people in full-time and part-time positions. Thirty one (31) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty (30) employees are full-time and there is one (1) 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 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)

          
    

June 30,

 

December 31,

 

June 30,

 
    

2021

 

2020

 

2020

 
          
          
ASSETS        
Cash and due from banks on demand 

$ 4,806

 

$ 3,744

 

$ 8,497

 
Interest bearing deposits with banks 

58,417

 

24,596

 

615

 
 Total cash and cash equivalents 

63,223

 

28,340

 

9,112

 
          
Securities available for sale 

128,633

 

133,317

 

143,102

 
Restricted investments in bank stock 

145

 

148

 

752

 
          
Loans  

234,532

 

241,080

 

254,932

 
 Allowance for loan losses 

(1,991)

 

(1,991)

 

(2,069)

 
  Net loans 

232,541

 

239,089

 

252,863

 
          
Premises and equipment 

2,629

 

2,805

 

2,797

 
Investment in Life Insurance 

19,332

 

19,070

 

18,819

 
Other assets 

2,994

 

2,662

 

3,917

 
          
 Total assets 

$ 449,497

 

$ 425,431

 

$ 431,362

 
          
LIABILITIES AND SHAREHOLDERS' EQUITY       
Liabilities:        
 Deposits:       
  Non-interest bearing 

$ 164,726

 

$ 148,398

 

$ 148,316

 
  Interest bearing 

215,455

 

203,001

 

196,672

 
  Total deposits 

380,181

 

351,399

 

344,988

 
          
 Short-term borrowings 

-

 

-

 

15,047

 
 Other liabilities 

4,067

 

4,605

 

4,811

 
  Total liabilities 

384,248

 

356,004

 

364,846

 
          
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 

61,012

 

63,292

 

62,335

 
 Accumulated other comprehensive income 

9,581

 

11,479

 

9,525

 
 Less treasury stock, at cost, 739,047 shares in 2021 and 2020 

(12,544)

 

(12,544)

 

(12,544)

 
  Total shareholders' equity 

65,249

 

69,427

 

66,516

 
          
  Total liabilities and shareholders' equity 

$ 449,497

 

$ 425,431

 

$ 431,362

 

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

    

2021

 

2020

 

2021

 

2020

    

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

           
INTEREST INCOME:        
 Interest and fees on loans 

$ 2,434

 

$ 2,754

 

$ 4,949

 

$ 5,360

 Interest and dividends on securities:        
  Taxable 

981

 

1,028

 

1,966

 

2,065

  Exempt from federal income taxes 

217

 

347

 

445

 

740

 Other 

13

 

10

 

20

 

34

 Total Interest income 

3,645

 

4,139

 

7,380

 

8,199

           
INTEREST EXPENSE:        
 Interest on deposits 

58

 

114

 

115

 

273

 Interest on short-term borrowings 

-

 

19

 

-

 

139

 Total Interest expense 

58

 

133

 

115

 

412

           
NET INTEREST INCOME 

3,587

 

4,006

 

7,265

 

7,787

PROVISION FOR LOAN LOSSES 

-

 

400

 

-

 

400

           
NET INTEREST INCOME AFTER        
PROVISION FOR LOAN LOSSES 

3,587

 

3,606

 

7,265

 

7,387

           
OTHER OPERATING INCOME:        
 Asset management and trust income 

380

 

335

 

738

 

678

 Service charges on deposit accounts 

172

 

143

 

338

 

303

 Net Security gains 

45

 

505

 

46

 

505

 Income from investment in life insurance 

122

 

117

 

245

 

228

 Life insurance proceeds 

-

 

-

 

-

 

730

 Other income 

37

 

28

 

91

 

100

 Total other operating income 

756

 

1,128

 

1,458

 

2,544

           
OTHER OPERATING EXPENSES:        
 Salaries and employee benefits 

1,822

 

1,864

 

3,653

 

3,828

 Net occupancy expense 

200

 

189

 

422

 

401

 Furniture and equipment 

132

 

112

 

245

 

208

 Pennsylvania shares tax 

164

 

142

 

314

 

284

 Legal and professional 

109

 

109

 

210

 

210

 FDIC insurance 

31

 

12

 

61

 

12

 Other expenses 

704

 

591

 

1,385

 

1,300

 Total other operating expenses 

3,162

 

3,019

 

6,290

 

6,243

           
INCOME BEFORE INCOME TAXES 

1,181

-

1,715

 

2,433

 

3,688

Income tax expense 

180

 

263

 

364

 

420

           
 Net income 

$ 1,001

 

$ 1,452

 

$ 2,069

 

$ 3,268

           
Average Shares Outstanding 

2,860,953

 

2,860,953

 

2,860,953

 

2,860,953

           
Earnings Per Share 

$ 0.35

 

$ 0.51

 

$ 0.72

 

$ 1.14

Contact Information:

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

SOURCE: Commercial National Financial Corporation

Commercial National Financial Corporation
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