COMMERCIAL NATIONAL FINANCIAL CORP /PA - FORM 8-K - EX-99.1 - FINANCIAL INFORMATION AS OF DECEMBER 31, 2010 - February 11, 2011

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8-K - RESULT OF OPERATIONS AND FINANCIAL CONDITION AS OF 12/31/2010 PRESS RELEASE - COMMERCIAL NATIONAL FINANCIAL CORP /PAdec2010pr8k.htm

 
 
 


NEWS RELEASE


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

For Immediate Release

COMMERCIAL NATIONAL ACHIEVES RECORD HEADLINE AND CORE EARNINGS FOR 2010

LATROBE, PA, February 9, 2011 - Commercial National Financial Corporation (NASDAQ:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the year ended December 31, 2010. The Company earned $5,501,000 (or $1.92 per average share outstanding) compared to $5,129,000 (or $1.79 per average share outstanding) in 2009. Earnings for the fourth quarter of 2010 were $1,378,000 (or $.48 per average share outstanding) compared to $1,533,000 (or $.54 per average share outstanding) for the same period in 2009.

Gregg E. Hunter, President and Chief Executive Officer noted, “Year-end 2010 post-tax net income increased $372,000, or 7.25%, to $5,501,000.  This earnings achievement for 2010 represents all-time record headline and core earnings for the Company following the previous record core earnings generated in 2009.  Recent sequential year-end post-tax net income results for the Company were $5,129,000 in 2009, $4,024,000 in 2008 and $3,065,000 in 2007.  The solid earnings results that have been produced throughout 2010, 2009, 2008 and 2007 were solely core earnings devoid of any material non-recurring income-enhancing items.”

Mr. Hunter added, “The improved earnings of 2010 were attributable to well-above industry standard net interest margin and earning asset credit quality strength, the successful maintenance of a marginal leverage carry trade position, vastly improved tax efficiency as an ancillary benefit of that position, lessened funding reliance on interest rate sensitive non-core liabilities, proportionate and absolute growth in book capital and meaningful growth in the most valuable less interest rate sensitive core deposit categories.  All of the aforementioned has enabled the Company to fortify its capital base exclusively via non-dilutive retained earnings. Capital has been materially strengthened in this manner over the past several years. The Company remains well-positioned to successfully weather uncertain economic times and to maintain its very attractive quarterly cash dividend payments to its common stock shareholders.”



 
 
 

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates 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.

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COMMERCIAL NATIONAL FINANCIAL CORPORATION
        
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
        
                             (Unaudited)
            
                            (Dollars in thousands, except per share data)
            
             
   
December 31
    
December 31
  
   
2010
    
2009
  
             
ASSETS
            
Cash and due from banks on demand
   $ 5,578     $ 6,610  
Interest bearing deposits with banks
     16       131  
Total cash and cash equivalents
     5,594       6,741  
                 
Securities available for sale
     131,159       138,918  
Restricted investments in bank stock
     4,339       4,567  
                 
Loans
     191,906       205,092  
Allowance for loan losses
     (1,686 )     (1,722 )
Net loans
     190,220       203,370  
                 
Premises and equipment
     3,323       3,548  
Other assets
     20,842       18,860  
                 
Total assets
   $ 355,477     $ 376,004  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
Liabilities:
                
Deposits:
                
Non-interest bearing
   $ 77,209     $ 74,260  
Interest bearing
     199,285       195,470  
Total deposits
     276,494       269,730  
                 
Short-term borrowings
     17,700       48,850  
Long-term borrowings
     10,000       10,000  
Other liabilities
     5,271       3,932  
Total liabilities
     309,465       332,512  
                 
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 2010 and 2009.
     7,200       7,200  
                 
                 
Retained earnings
     47,207       44,223  
                 
Accumulated other comprehensive income
     4,149       4,613  
                 
Less treasury stock, at cost,
                
739,047 shares in 2010 and 2009
     (12,544 )     (12,544 )
Total shareholders' equity
     46,012       43,492  
                 
Total liabilities and shareholders' equity
   $ 355,477     $ 376,004  
                 
                 

 
 
 

 
 
 

                   COMMERCIAL NATIONAL FINANCIAL CORPORATION
                    
                       CONSOLIDATED STATEMENTS OF INCOME
                    
                                                        (Unaudited)
                        
                                                     (Dollars in thousands, except per share data)
                        
                                                         
                                        
   
For the three months ended December 31
    
For the twelve months ended December 31
  
   
2010
    
2009
    
2010
    
2009
  
                         
INTEREST INCOME:
                        
Interest and fees on loans
   $ 2,768     $ 2,949     $ 11,368     $ 12,041  
Interest and dividends on securities:
                                
Taxable
     955       1,469       4,474       6,809  
Exempt from federal income taxes
     667       368       2,373       643  
Other
     -       -       2       3  
Total Interest income
     4,390       4,786       18,217       19,496  
                                 
INTEREST EXPENSE:
                                
Interest on deposits
     517       686       2,366       3,083  
Interest on short-term borrowings
     27       47       139       200  
Interest on long-term borrowings
     60       60       237       899  
Total Interest expense
     604       793       2,742       4,182  
                                 
NET INTEREST INCOME
     3,786       3,993       15,475       15,314  
PROVISION FOR LOAN LOSSES
     -       -       -       -  
                                 
NET INTEREST INCOME AFTER
                                
PROVISION FOR LOAN LOSSES
     3,786       3,993       15,475       15,314  
                                 
OTHER OPERATING INCOME:
                                
Asset management and trust income
     238       215       947       925  
Service charges on deposit accounts
     111       146       505       583  
Other service charges and fees
     198       187       772       753  
Income from investment in life insurance
     143       133       508       485  
Other income
     48       77       176       221  
Total other operating income
     738       758       2,908       2,967  
                                 
OTHER OPERATING EXPENSES
                                
Salaries and employee benefits
     1,551       1,469       6,070       5,724  
Net occupancy expense
     199       190       837       819  
Furniture and equipment
     137       159       537       525  
Pennsylvania shares tax
     124       125       501       507  
Legal and professional
     83       37       432       385  
FDIC Insurance expense
     86       90       343       452  
Other expenses
     668       665       2,858       2,834  
Total other operating expenses
     2,848       2,735       11,578       11,246  
                                 
INCOME BEFORE INCOME TAXES
     1,676       2,016       6,805       7,035  
Income tax expense
     298       483       1,304       1,906  
                                 
Net income
   $ 1,378     $ 1,533     $ 5,501     $ 5,129  
                                 
Average Shares Outstanding
     2,860,953       2,860,953       2,860,953       2,866,338  
                                 
Earnings Per Share
   $ 0.48     $ 0.54     $ 1.92     $ 1.79  
                                 
                                 

 
 
 



COMMERCIAL NATIONAL FINANCIAL CORP /PA Reports