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Commercial National Reports Record Earnings For 2012

Monday, February 4, 2013 10:46 AM


LATROBE, Pa., Feb. 4, 2013 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended December 31, 2012. The Company earned $1,176,000 (or $.41 per average share outstanding) in the fourth quarter 2012 compared to $1,989,000 (or $.70 per average share outstanding) in the fourth quarter 2011. The Company earned $7,265,000 (or $2.54 per average share outstanding) for the twelve-month period ended December 31, 2012 and $6,715,000 (or $2.35 per average share outstanding) for the twelve-month period ended December 31, 2011. The Company's annualized return on average assets and average equity were 1.27% and 8.53%, respectively, for the quarter ended December 31, 2012 compared to 2.00% and 15.56%, respectively, for the quarter ended December 31, 2011. The Company's annualized return on average assets and average equity were 1.93% and 13.19%, respectively, for the twelve month period ended December 31, 2012 compared to 1.77% and 13.84%, respectively, for the twelve-month period ended December 31, 2011.

President and Chief Executive Officer, Gregg E. Hunter noted, "Year-end 2012 post-tax net income rose to $7,265,000. This earnings result for 2012 signifies yet another record earnings achievement for the Company.  Recent sequential earnings results for the Company were $6,715,000 in 2011, $5,501,000 in 2010, $5,129,000 in 2009, $4,024,000 in 2008 and $3,065,000 in 2007. During the second half of 2011 an expansion of high-yield municipal bond leverage materially influenced earnings for that time period.  During the first quarter of 2012 that leverage position was extensively reduced inducing an earnings and equity capture of considerable magnitude which profoundly shaped individual quarterly and full year results for 2012.  In the aftermath of this deleveraging, the Company's core earnings continue to be driven by outstanding earning asset credit quality, strong net interest margin, effective overhead cost containment and exceptional tax efficiency. The Company's capital adequacy continues to vastly surpass both present and proposed regulatory standards even after December 2012's special $1.00 per share cash dividend to all the Company's common stock shareholders."

Mr. Hunter added, "The special $1.00 per share cash dividend was only made possible by the broad discretionary latitude afforded by the Company's exemplary financial condition and financial performance which have been successfully maintained over a multi-year period of unprecedented banking industry turmoil. The Company begins 2013 in a position of considerable financial strength and that strength will be preserved through strict adherence to disciplined underwriting and investment practices. This strength will be augmented by balanced operational controls so that potential opportunities may be fully seized upon and exploited to buttress 2013's financial performance in a risk-balanced manner."

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)













December 31


December 31






2012


2011










ASSETS






Cash and due from banks on demand


$                      6,468


$                      6,275


Interest bearing deposits with banks


32,113


185



Total cash and cash equivalents


38,581


6,460










Securities available for sale


141,321


189,898


Restricted investments in bank stock


2,506


3,534










Loans



168,886


179,386



Allowance for loan losses


(1,649)


(1,673)




Net loans


167,237


177,713










Premises and equipment


3,136


3,085


Investment in Life Insurance


16,562


16,021


Other assets


3,719


4,335











Total assets


$                  373,062


$                  401,046










LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:







Deposits:








Non-interest bearing


$                  103,437


$                    89,690




Interest bearing


213,020


214,126




Total deposits


316,457


303,816











Short-term borrowings


-


29,450



Long-term borrowings


-


10,000



Other liabilities


3,839


5,231




Total liabilities


320,296


348,497










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 2012 and 2011.


7,200


7,200



















Retained earnings


52,604


51,175











Accumulated other comprehensive income


5,506


6,718











Less treasury stock, at cost,







739,047 shares in 2012 and 2011


(12,544)


(12,544)




Total shareholders' equity


52,766


52,549












Total liabilities and shareholders' equity

$                  373,062


$                  401,046










 

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

















Three Months


Twelve Months






Ended December 31


Ended December 31






2012


2011


2012


2011














INTEREST INCOME:











Interest and fees on loans


$               2,122


$               2,546


$               9,076


$             10,599



Interest and dividends on securities:












Taxable


476


1,274


2,745


4,152




Exempt from federal income taxes


852


1,017


3,547


3,673




Other


32


-


100


1



Total Interest income


3,482


4,837


15,468


18,425














INTEREST EXPENSE:











Interest on deposits


246


366


1,170


1,734



Interest on short-term borrowings


-


14


16


59



Interest on long-term borrowings


-


60


1


237



Total Interest expense


246


440


1,187


2,030














NET INTEREST INCOME


3,236


4,397


14,281


16,395


PROVISION FOR LOAN LOSSES


-


-


-


-














NET INTEREST INCOME AFTER










PROVISION FOR LOAN LOSSES


3,236


4,397


14,281


16,395














OTHER OPERATING INCOME:











Asset management and trust income


233


236


939


1,069



Service charges on deposit accounts


284


261


1,102


1,055



Net Security gains


-


-


3,317


9



Income from investment in life insurance


134


143


500


508



Other income


39


50


237


227



Total other operating income


690


690


6,095


2,868














OTHER OPERATING EXPENSES











Salaries and employee benefits


1,589


1,507


6,371


6,132



Net occupancy expense


213


196


829


828



Furniture and equipment


161


95


427


400



Pennsylvania shares tax


133


126


510


503



Legal and professional


105


75


352


381



FDIC Insurance expense


48


47


192


225



Other expenses


418


641


2,779


2,820



Total other operating expenses


2,667


2,687


11,460


11,289














INCOME BEFORE INCOME TAXES


1,259


2,400


8,916


7,974


Income tax expense


83


411


1,651


1,259















Net income


$               1,176


$               1,989


$               7,265


$               6,715














Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953














Earnings Per Share


$                 0.41


$                 0.70


$                 2.54


$                 2.35














SOURCE Commercial National Financial Corporation

(Source: PR Newswire )
(Source: Quotemedia)

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