Commercial National Reports Strong June 30, 2020 Earnings Increases

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
wpiper@cbthebank.com
724-537-9923

SOURCE: Commercial National Financial Corporation



View source version on accesswire.com:
https://www.accesswire.com/596934/Commercial-National-Reports-Strong-June-30-2020-Earnings-Increases

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