COMMERCIAL NATIONAL FINANCIAL CORP /PA - FORM 8-K - EX-99.1 - FINANCIAL INFORMATION AS OF DECEMBER 31, 2011 - February 9, 2012

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8-K - RESULT OF OPERATIONS AND FINANCIAL CONDITION AS OF 12/31/2011 PRESS RELEASE. - COMMERCIAL NATIONAL FINANCIAL CORP /PAdec2011pressrelease8k.htm

 
 

NEWS RELEASE


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

For Immediate Release

COMMERCIAL NATIONAL ACHIEVES 22.1% FULL YEAR AND 44.3% FOURTH QUARTER CORE EARNINGS GROWTH FOR 2011

LATROBE, PA, February 7, 2012 - Commercial National Financial Corporation (NASDAQ:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the year ended December 31, 2011. The Company earned $6,715,000 (or $2.35 per average share outstanding) compared to $5,501,000 (or $1.92 per average share outstanding) in 2010. Earnings for the fourth quarter of 2011 were $1,989,000 (or $.70 per average share outstanding) compared to $1,378,000 (or $.48 per average share outstanding) for the same period in 2010. Full year earnings increased $1,214,000, or 22.1%, while fourth quarter earnings increased $611,000, or 44.3%.
 

 
Gregg E. Hunter, President and Chief Executive Officer noted, “Core earnings progressively strengthened throughout 2011 on a linked-quarter basis and in comparison to the quarterly results of 2010.  The Company’s above banking industry standard financial performance remains firmly based upon strong asset quality, very high tax-equivalent net interest margin and ample capital adequacy in conjunction with the complimentary balanced optionalities and proportional volumes of the Company’s various assets and liabilities.  Through hard work, constant vigilance and measured risk management our Company continued to derive maximum benefit from pronounced yield curve slope during all of 2011.  The Company begins 2012 exceedingly well-positioned for comparative earnings success.”
 

 
Mr. Hunter added, “The Company’s superior core financial performance and strong capital base continue to solidly support very attractive and reliable quarterly cash dividend payments to the Company’s common stock shareholders. Maintaining a meaningful quarterly cash dividend stream to our shareholders remains a top priority for the Company. High cash dividends and high dividend yields also provide solid support for Commercial National’s very favorable common stock market share price valuations.”
 

 
 
 

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. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission (“SEC”). Accordingly, the financial information in this announcement is subject to change.

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COMMERCIAL NATIONAL FINANCIAL CORPORATION
        
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
        
                                        (Unaudited)
            
                                        (Dollars in thousands)
            
             
   
December 31
    
December 31
  
   
2011
    
2010
  
             
ASSETS
            
Cash and due from banks on demand
   $ 6,275     $ 5,578  
Interest bearing deposits with banks
     185       16  
Total cash and cash equivalents
     6,460       5,594  
                 
Securities available for sale
     189,898       131,159  
Restricted investments in bank stock
     3,534       4,339  
                 
Loans
     179,386       191,906  
Allowance for loan losses
     (1,673 )     (1,686 )
Net loans
     177,713       190,220  
                 
Premises and equipment
     3,085       3,323  
Other assets
     20,356       20,842  
                 
Total assets
   $ 401,046     $ 355,477  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
Liabilities:
                
Deposits:
                
Non-interest bearing
   $ 89,690     $ 77,209  
Interest bearing
     214,126       199,285  
Total deposits
     303,816       276,494  
                 
Short-term borrowings
     29,450       17,700  
Long-term borrowings
     10,000       10,000  
Other liabilities
     5,231       5,271  
Total liabilities
     348,497       309,465  
                 
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
     51,175       47,207  
                 
Accumulated other comprehensive income
     6,718       4,149  
                 
Less treasury stock, at cost,
                
739,047 shares in 2011 and 2010
     (12,544 )     (12,544 )
Total shareholders' equity
     52,549       46,012  
                 
Total liabilities and shareholders' equity
   $ 401,046     $ 355,477  
                 

 
 
 


COMMERCIAL NATIONAL FINANCIAL CORPORATION
                    
CONSOLIDATED STATEMENTS OF INCOME
                    
                                                            (Dollars in thousands, except per share data)              
                        
                                           
                        
            Three Months           Three Months      
Twelve Months
           Twelve Months  
   
Ended December 31,
         Ended December 31,     Ended December 31,         Ended December 31,  
                     2011                                 2010                     2011                                         2010  
   
(unaudited) 
    
(unaudited) 
    
(unaudited) 
    
(unaudited) 
  
                         
INTEREST INCOME:
                        
Interest and fees on loans
   $ 2,546     $ 2,768     $ 10,599     $ 11,368  
Interest and dividends on securities:
                                
Taxable
     1,274       955       4,152       4,474  
Exempt from federal income taxes
     1,017       667       3,673       2,373  
Other
     -       -       1       2  
Total Interest income
     4,837       4,390       18,425       18,217  
                                 
INTEREST EXPENSE:
                                
Interest on deposits
     366       517       1,734       2,366  
Interest on short-term borrowings
     14       27       59       139  
Interest on long-term borrowings
     60       60       237       237  
Total Interest expense
     440       604       2,030       2,742  
                                 
NET INTEREST INCOME
     4,397       3,786       16,395       15,475  
PROVISION FOR LOAN LOSSES
     -       -       -       -  
                                 
NET INTEREST INCOME AFTER
                                
PROVISION FOR LOAN LOSSES
     4,397       3,786       16,395       15,475  
                                 
OTHER OPERATING INCOME:
                                
Asset management and trust income
     236       238       1,069       947  
Service charges on deposit accounts
     261       272       1,055       1,136  
Income from investment in life insurance
     143       143       508       508  
Other income
     50       85       236       317  
Total other operating income
     690       738       2,868       2,908  
                                 
OTHER OPERATING EXPENSES
                                
Salaries and employee benefits
     1,507       1,551       6,132       6,070  
Net occupancy expense
     196       199       828       837  
Furniture and equipment
     95       137       400       537  
Pennsylvania shares tax
     126       124       503       501  
Legal and professional
     75       83       381       432  
FDIC Insurance expense
     47       86       225       343  
Other expenses
     641       668       2,820       2,858  
Total other operating expenses
     2,687       2,848       11,289       11,578  
                                 
INCOME BEFORE INCOME TAXES
     2,400       1,676       7,974       6,805  
Income tax expense
     411       298       1,259       1,304  
                                 
Net income
   $ 1,989     $ 1,378     $ 6,715     $ 5,501  
                                 
Average Shares Outstanding
     2,860,953       2,860,953       2,860,953       2,860,953  
                                 
Earnings Per Share
   $ 0.70     $ 0.48     $ 2.35     $ 1.92  
                                 

 
 
 
 

COMMERCIAL NATIONAL FINANCIAL CORP /PA Reports