*LATROBE, PA, / ACCESSWIRE / April 22, 2020 /* Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2020. The Company earned $1,816,000 (or $0.63 per average share outstanding) in the first quarter 2020 compared to $1,208,000 (or $0.42 per average share outstanding) in the first quarter of 2019. Life insurance proceeds of $730,000 favorably influenced 2020 earnings results.
First quarter 2020 earnings increased $608,000, or 50.30%, over first quarter 2019 results. The Company's annualized return on average assets for the quarter ended March 31, 2020 was 1.73%, compared to 1.15% for the quarter ended March 31, 2019. First quarter tax equivalent net interest margin was 4.10%. Asset credit quality metrics remained favorable relative to prevailing COVID-19 driven banking industry norms. The effective tax rate for the quarter ended March 31, 2020 was 7.90%. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for March 31, 2020 were 21.16%, 21.78%, 13.78% and 21.16%, 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 476,638 shares, or 16.66% on March 31, 2020.
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-four (44) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, Thirty-five (35) employees are full-time and nine (9) 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.
*COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except per share data)*
March 31, December 31, March 31,
2020 2019 2019
*ASSETS*
Cash and due from banks on demand
$ 6,015 $ 4,510 $ 5,068
Interest bearing deposits with banks
191 47 103
Cash and Cash Equivalents
6,206 4,557 5,171
Securities available for sale
145,670 150,838 160,841
Restricted investments in bank stock
1,211 899 1,558
Loans
239,194 238,407 228,167
Allowance for loan losses
(1,663 ) (1,374 ) (1,340 )
Net loans
237,531 237,033 226,827
Premises and equipment
2,834 2,618 2,713
Investment in life insurance
18,695 20,310 19,901
Other assets
4,372 3,319 4,679
Total assets
$ 416,519 $ 419,574 $ 421,690
*LIABILITIES AND SHAREHOLDERS' EQUITY*
Liabilities
Deposits
Non-interest bearing
$ 133,910 $ 133,362 $ 128,131
Interest bearing
192,618 198,986 193,786
Total deposits
326,528 332,348 321,917
Short-term borrowings
25,375 20,200 35,512
Other liabilities
3,298 4,102 1,912
Total liabilities
355,201 356,650 359,341
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
7,200 7,200 7,200
Retained earnings
61,626 60,554 63,549
Accumulated other comprehensive income
5,036 7,714 4,144
Treasury stock, at cost, 739,047 shares
in 2020 and 2019
(12,544 ) (12,544 ) (12,544 )
Total shareholders' equity
61,318 62,924 62,349
Total liabilities and shareholders' equity
$ 416,519 $ 419,574 $ 421,690
*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,
2020 2019
INTEREST INCOME
Interest and fees on loans
$ 2,606 $ 2,591
Interest and dividends on securities:
Taxable
1,037 1,051
Exempt from federal income taxes
393 559
Other
24 34
Total Interest income
4,060 4,235
INTEREST EXPENSE
Interest on deposits
159 187
Interest on short term borrowings
120 252
Total Interest expense
279 439
NET INTEREST INCOME
3,781 3,796
PROVISION FOR LOAN LOSSES
- -
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
3,781 3,796
OTHER OPERATING INCOME
Asset management and trust income
343 340
Service charges on deposit accounts
160 169
Net Security losses
- (3 )
Gain on sale of OREO
- 4
Income from investment in life insurance
111 126
Life Insurance proceeds
730 -
Other income
72 64
Total other operating income
1,416 700
OTHER OPERATING EXPENSES
Salaries and employee benefits
1,964 1,867
Net occupancy expense
212 218
Furniture and equipment
96 106
Pennsylvania shares tax
142 142
Legal and professional
101 78
FDIC Insurance
- 28
Other expenses
709 763
Total other operating expenses
3,224 3,202
INCOME BEFORE INCOME TAXES
1,973 1,294
Income tax expense
157 86
Net income
$ 1,816 $ 1,208
Average Shares Outstanding
2,860,953 2,860,953
Earnings Per Share
$ 0.63 $ 0.42 *Contact Information:*
Wendy S. Piper
First Senior Vice President
Secretary/Treasurer
wpiper@cbthebank.com
724-537-9923
*SOURCE:* Commercial National Financial Corporation
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Commercial National Reports March 31, 2020 Earnings Increase
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