Commercial National Reports March 31, 2019 Earnings Increase Of 16.15%

LATROBE, PA / ACCESSWIRE / April 24, 2019 / Commercial National Financial Corporation (OTCQX: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2019. The Company earned $1,208,,000 (or $0.42 per average share outstanding) in the first quarter 2019 compared to $1,040,000 (or $0.36 per average share outstanding) in the first quarter of 2018.

First quarter 2019 earnings increased $168,000, or 16.15%, over first quarter 2018 results due to core earnings growth. The Company’s annualized return on average assets for the quarter ended March 31, 2019 was 1.15%, compared to 1.08% for the quarter ended March 31, 2018. First quarter tax equivalent net interest margin was 4.09%. Asset credit quality metrics continue to be outstanding relative to prevailing banking industry norms. The effective tax rate for the quarter ended March 31, 2019 was 6.65%. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for March 31, 2019 were 22.16%, 22.68%, 13.93% and 22.16%, respectively.

The Company’s strong capital position, supplemented by recent and reasonably anticipated core earnings, remains 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 472,975 shares, or 16.53% on March 31, 2019.

As disclosed each year in the Annual Report to Shareholders, on March 31, 2019, the Company employed 97 people in full-time and part-time positions. Forty-five (45) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, Thirty-five (35) employees are full-time and ten (10) employees are part-time. 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.

Contact Information:

Wendy S. Piper
First Senior Vice President
Secretary/Treasurer
wpiper@cbthebank.com

724-537-9923

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except per share data)

March 31,

December 31,

March 31,

2019

2018

ASSETS

Cash and due from banks on demand

$
5,068

$
5,642

$
3,163

Interest bearing deposits with banks

103

Cash and Cash Equivalents

5,171

5,701

3,207

Securities available for sale

160,841

159,741

153,582

Restricted investments in bank stock

1,558

1,411

894

Loans

228,167

227,747

206,969

Allowance for loan losses

(1,340
)

(1,349
)

(1,289
)

Net loans

226,827

226,398

205,680

Premises and equipment

2,713

2,800

2,919

Investment in life insurance

19,901

19,767

19,365

Other assets

4,679

3,808

4,606

Total assets

$
421,690

$
419,626

$
390,253

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Deposits

Non-interest bearing

$
128,131

$
128,437

$
120,765

Interest bearing

193,786

197,482

194,828

Total deposits

321,917

325,919

315,593

Short-term borrowings

35,512

32,822

15,265

Other liabilities

1,912

1,351

876

Total liabilities

359,341

360,092

331,734

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 2019 and 2018

7,200

Retained earnings

63,549

63,085

62,011

Accumulated other comprehensive income

4,144

1,793

1,852

Treasury stock, at cost, 739,047 shares

in 2019 and 2018

(12,544
)

Total shareholders’ equity

62,349

59,534

58,519

Total liabilities and shareholders’ equity

$
421,690

$
419,626

$
390,253

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)

Three Months Ended

March 31,

2019

2018

INTEREST INCOME

Interest and fees on loans

$
2,591

$
2,230

Interest and dividends on securities:

Taxable

1,051

1,039

Exempt from federal income taxes

559

468

Other

Total Interest income

4,235

3,749

INTEREST EXPENSE

Interest on deposits

187

101

Interest on short term borrowings

252

Total Interest expense

439

158

NET INTEREST INCOME

3,796

3,591

PROVISION FOR LOAN LOSSES

–

NET INTEREST INCOME AFTER

PROVISION FOR LOAN LOSSES

3,796

3,591

OTHER OPERATING INCOME

Asset management and trust income

340

356

Service charges on deposit accounts

169

177

Net Security losses

(3
)

–

Gain on sale of OREO

–

Income from investment in life insurance

126

127

Other income

Total other operating income

700

739

OTHER OPERATING EXPENSES

Salaries and employee benefits

1,867

1,830

Net occupancy expense

218

217

Furniture and equipment

106

122

Pennsylvania shares tax

142

128

Legal and professional

120

FDIC Insurance

Other expenses

763

723

Total other operating expenses

3,202

3,169

INCOME BEFORE INCOME TAXES

1,294

1,161

Income tax expense

121

Net income

$
1,208

$
1,040

Average Shares Outstanding

2,860,953

Earnings Per Share

$
0.42

$
0.36

SOURCE: Commercial National Financial Corporation

ReleaseID: 542868

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