COMMERCIAL NATIONAL FINANCIAL CORP /PA - FORM 8-K - EX-99.1 - FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2011 - November 2, 2011

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8-K - 8-K FOR RESULTS OF OPERATIONS AND FINANCIAL CONDITION AS OF SEPTEMBER 30, 2011 - COMMERCIAL NATIONAL FINANCIAL CORP /PAsept20118k.htm


NEWS RELEASE


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

For Immediate Release

COMMERCIAL NATIONAL GENERATES EARNINGS GROWTH OF 34.99% FOR THIRD QUARTER AND 14.63% FOR FIRST NINE MONTHS

LATROBE, PA, November 1, 2011 - Commercial National Financial Corporation (NASDAQ:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended September 30, 2011. The Company earned $1,879,000 (or $.65 per average share outstanding) in 2011 compared to $1,392,000 (or $.49 per average share outstanding) in 2010. The Company earned $4,726,000 (or $1.65 per average share outstanding) for the nine-month period ended September 30, 2011 and $4,123,000 (or $1.44 per average share outstanding) for the nine-month period ended September 30, 2010. Third quarter 2011 earnings increased $487,000, or 34.99%, while first nine months 2011 earnings increased $603,000, or 14.63%.

President/Chief Executive Officer Gregg E. Hunter noted, “Core earnings have progressively strengthened throughout 2011. Asset quality remained high with 2011’s third quarter being the eleventh consecutive fiscal quarter without need for any loan loss provisions or securities impairment charges. Return on average assets was 1.92% for 2011’s third quarter and 1.69% for 2011’s first nine months. Third quarter-end tier one risk-based, total risk-based and leverage capital ratios were 20.05%, 20.81% and 11.58%, respectively. Commercial National’s strong core earnings, high asset quality and ample capital adequacy facilitated the Company’s third quarter dividend action which increased the previous $0.22 regular quarterly common stock cash dividend by 18.18% to a new all-time record high of $0.26 per share. Maintaining an attractive quarterly cash dividend stream to our shareholders continues to be a top priority for the Company.”



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
        
                                                            (Dollars in thousands)                      
            
                                              
            
             
   
September 30,
    
September 30,
  
   
2011
(unaudited)
    
2010
(unaudited)
  
             
ASSETS
            
Cash and due from banks on demand
   $ 7,238     $ 7,883  
Interest bearing deposits with banks
     324       49  
Total cash and cash equivalents
     7,562       7,932  
                 
Securities available for sale
     177,772       134,575  
Restricted investments in bank stock
     3,720       4,567  
                 
Loans
     187,391       197,065  
Allowance for loan losses
     (1,673 )     (1,686 )
Net loans
     185,718       195,379  
                 
Premises and equipment
     3,136       3,405  
Other assets
     22,529       19,346  
                 
Total assets
   $ 400,437     $ 365,204  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
Liabilities:
                
Deposits:
                
Non-interest bearing
   $ 90,198     $ 80,454  
Interest bearing
     205,376       195,320  
Total deposits
     295,574       275,774  
                 
Short-term borrowings
     36,275       28,375  
Long-term borrowings
     10,000       10,000  
Other liabilities
     7,154       4,236  
Total liabilities
     349,003       318,385  
                 
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
     49,930       46,458  
Accumulated other comprehensive income
     6,848       5,705  
Less treasury stock, at cost,
                
739,047 shares in 2011 and 2010
     (12,544 )     (12,544 )
Total shareholders' equity
     51,434       46,819  
                 
Total liabilities and shareholders' equity
   $ 400,437     $ 365,204  
                 
                 

 
 
 



COMMERCIAL NATIONAL FINANCIAL CORPORATION
                    
CONSOLIDATED STATEMENTS OF INCOME
                    
                                              (Dollars in thousands, except per share data)                        
                                  
                        
                         
   
Three Months
           Three Months    
 Nine Months
            Nine Months  
             
   
Ended September 30, 
2011
(unaudited)
    
Ended September 30,
2010
(unaudited)
    
Ended September 30,
2011
(unaudited)
    
Ended September 30, 
2010
(unaudited)
  
                         
INTEREST INCOME:
                        
Interest and fees on loans
   $ 2,670     $ 2,826     $ 8,053     $ 8,600  
Interest and dividends on securities:
                                
Taxable
     1,068       1,031       2,878       3,519  
Exempt from federal income taxes
     1,018       668       2,656       1,706  
Other
     -       -       1       2  
Total Interest income
     4,756       4,525       13,588       13,827  
                                 
INTEREST EXPENSE:
                                
Interest on deposits
     408       566       1,368       1,849  
Interest on short-term borrowings
     16       35       45       112  
Interest on long-term borrowings
     59       59       177       177  
Total Interest expense
     483       660       1,590       2,138  
                                 
NET INTEREST INCOME
     4,273       3,865       11,998       11,689  
PROVISION FOR LOAN LOSSES
     -       -       -       -  
                                 
NET INTEREST INCOME AFTER
                                
PROVISION FOR LOAN LOSSES
     4,273       3,865       11,998       11,689  
                                 
OTHER OPERATING INCOME:
                                
Asset management and trust income
     327       280       833       709  
Service charges on deposit accounts
     268       294       794       864  
Income from investment in life insurance
     121       122       365       365  
Other income
     43       62       186       232  
Total other operating income
     759       758       2,178       2,170  
                                 
OTHER OPERATING EXPENSES
                                
Salaries and employee benefits
     1,524       1,510       4,625       4,519  
Net occupancy expense
     218       212       632       638  
Furniture and equipment
     92       123       305       400  
Pennsylvania shares tax
     124       125       377       377  
Legal and professional
     84       110       306       349  
FDIC Insurance expense
     8       90       178       257  
Other expenses
     766       763       2,179       2,190  
Total other operating expenses
     2,816       2,933       8,602       8,730  
                                 
INCOME BEFORE INCOME TAXES
     2,216       1,690       5,574       5,129  
Income tax expense
     337       298       848       1,006  
                                 
Net income
   $ 1,879     $ 1,392     $ 4,726     $ 4,123  
                                 
Average Shares Outstanding
     2,860,953       2,860,953       2,860,953       2,860,953  
                                 
Earnings Per Share
   $ 0.65     $ 0.49     $ 1.65     $ 1.44  
                                 


COMMERCIAL NATIONAL FINANCIAL CORP /PA Reports