COMMERCIAL NATIONAL FINANCIAL CORP /PA - FORM 8-K - EX-99.1 - FINANCIAL INFORMATION AS OF JUNE 30, 2011 - August 3, 2011

Attached files

file filename
8-K - 8-K FOR RESULTS OF OPERATIONS AND FINANCIAL CONDITION AS OF JUNE 30, 2011 - COMMERCIAL NATIONAL FINANCIAL CORP /PAjune20118k.htm

NEWS RELEASE

Contact:                 Wendy S. Schmucker
Senior Vice President, Secretary and Treasurer
724-537-9923

For Immediate Release

COMMERCIAL NATIONAL ACHIEVES EARNINGS GROWTH OF 7.68% FOR SECOND QUARTER AND 4.25% FOR FIRST SIX MONTHS

LATROBE, PA, August 1, 2011 - Commercial National Financial Corporation (NASDAQ:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended June 30, 2011. The Company earned $1,487,000 (or $.52 per average share outstanding) in 2011 compared to $1,381,000 (or $.48 per average share outstanding) in 2010. The Company earned $2,847,000 (or $1.00 per average share outstanding) for the six-month period ended June 30, 2011 and $2,731,000 (or $.95 per average share outstanding) for the six-month period ended June 30, 2010. Second quarter 2011 earnings increased $106,000 or 7.68% while first six month 2011 earnings increased $116,000 or 4.25%.

President and Chief Executive Officer Gregg E. Hunter noted, “The financial performance realized thus far in 2011 remains exclusively attributable to core earnings generation rather than to any irregular non-recurring material items. Tax-equivalent net interest margin was 5.27% for 2011’s second quarter and 5.24% for 2011’s first six months. The Company’s asset quality maintained its traditional strength through mid-year as exemplified by ten consecutive fiscal quarters without need for any loan loss provisions or securities impairment charges. Return on average assets was 1.60% for 2011’s second quarter and 1.56% for 2011’s first six months.  At second quarter end, the Company’s tier one risk-based, total risk-based and leverage capital ratios were 19.87%, 20.64% and 11.90%, respectively.  The Company’s well above banking industry standard core financial performance and ample capital levels continue to solidly support very attractive and reliable quarterly cash dividend payments to the Company’s common stock shareholders”.

 
 
 

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
        
(Dollars in thousands, except per share data)
            
             
   
June 30,
    
June 30,
  
   
2011
    
2010
  
   
(unaudited)
    
(unaudited)
  
             
ASSETS
            
Cash and due from banks on demand
   $ 6,949     $ 6,106  
Interest bearing deposits with banks
     11       28  
Total cash and cash equivalents
     6,960       6,134  
                 
Securities available for sale
     159,026       138,766  
Restricted investments in bank stock
     3,916       4,567  
                 
Loans
     190,858       197,998  
Allowance for loan losses
     (1,683 )     (1,694 )
Net loans
     189,175       196,304  
                 
Premises and equipment
     3,192       3,449  
Investment in Life Insurance
     15,715       15,164  
Other assets
     4,153       4,039  
                 
Total assets
   $ 382,137     $ 368,423  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
Liabilities:
                
Deposits:
                
Non-interest bearing
   $ 87,711     $ 74,542  
Interest bearing
     202,724       199,837  
Total deposits
     290,435       274,379  
                 
Short-term borrowings
     30,125       34,650  
Long-term borrowings
     10,000       10,000  
Other liabilities
     3,563       3,918  
Total liabilities
     334,123       322,947  
                 
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 2011 and 2010
  
                 
      7,200       7,200  
Retained earnings
     48,795       45,695  
Accumulated other comprehensive income
     4,563       5,125  
Less treasury stock, at cost, 739,047 shares in 2011 and 2010
     (12,544 )     (12,544 )
Total shareholders' equity
     48,014       45,476  
                 
Total liabilities and shareholders' equity
   $ 382,137     $ 368,423  
                 

 
 
 


COMMERCIAL NATIONAL FINANCIAL CORPORATION
                    
CONSOLIDATED STATEMENTS OF INCOME
                    
                                             (Dollars in thousands, except per share data)
                        
                         
   
Three Months
      
Three Months
    
Six Months
      
Six Months
  
   
Ended June 30
      
Ended June 30
    
Ended June 30
      
Ended June 30
  
   
2011
    
2010
    
2011
    
2010
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
                         
INTEREST INCOME:
                        
Interest and fees on loans
   $ 2,666     $ 2,854     $ 5,383     $ 5,774  
Interest and dividends on securities:
                                
Taxable
     887       1,165       1,810       2,488  
Exempt from federal income taxes
     910       590       1,638       1,038  
Other
     1       1       1       2  
Total Interest income
     4,464       4,610       8,832       9,302  
                                 
INTEREST EXPENSE:
                                
Interest on deposits
     475       633       960       1,283  
Interest on short-term borrowings
     11       36       29       77  
Interest on long-term borrowings
     59       59       118       118  
Total Interest expense
     545       728       1,107       1,478  
                                 
NET INTEREST INCOME
     3,919       3,882       7,725       7,824  
PROVISION FOR LOAN LOSSES
     -       -       -       -  
                                 
NET INTEREST INCOME AFTER
                                
PROVISION FOR LOAN LOSSES
     3,919       3,882       7,725       7,824  
                                 
OTHER OPERATING INCOME:
                                
Asset management and trust income
     254       217       506       429  
Service charges on deposit accounts
     270       298       526       570  
Income from investment in life insurance
     121       122       244       243  
Other income
     80       62       143       170  
Total other operating income
     725       699       1,419       1,412  
                                 
OTHER OPERATING EXPENSES:
                                
Salaries and employee benefits
     1,516       1,490       3,101       3,009  
Net occupancy expense
     200       199       414       426  
Furniture and equipment
     104       135       213       277  
Pennsylvania shares tax
     127       126       253       252  
Legal and professional
     129       115       222       239  
FDIC  insurance expense
     83       85       170       167  
Other expenses
     738       720       1,413       1,427  
Total other operating expenses
     2,897       2,870       5,786       5,797  
                                 
INCOME BEFORE INCOME TAXES
     1,747       1,711       3,358       3,439  
Income tax expense
     260       330       511       708  
                                 
Net income
   $ 1,487     $ 1,381     $ 2,847     $ 2,731  
                                 
Average Shares Outstanding
     2,860,953       2,860,953       2,860,953       2,860,953  
                                 
Earnings Per Share
   $ 0.52     $ 0.48     $ 1.00     $ 0.95  

 
 
 

COMMERCIAL NATIONAL FINANCIAL CORP /PA Reports