Stock Purchase March 2006
Item
801 - Other Events.
On
Friday, March 24, 2006, Commercial National Financial Corporation, parent
company of Commercial Bank & Trust of PA, repurchased 362,113 shares of its
common stock held by Louis
A.
Steiner, a former Chairman of the Board of the Company, Sarah
Steiner Shirey, Henry K. and Barbara Steiner Holmes, husband and wife, the
Latrobe Foundry Machine & Supply Co., Barbara J. Steiner, and Louis T.
Steiner, a former Director and former CEO of the Company, and Pamela Steiner,
husband and wife. The repurchased shares represent approximately 10.6% of the
total shares outstanding. The aggregate purchase price for the stock is
approximately $6.7 million, which is $18.50 per share. The market price for
the
Company's common stock as of the close of business on Wednesday, March 22,
2006,
was $19.00 per share. The agreement also provides that the selling shareholders
are prohibited from purchasing the common stock of the Company for five years.
The selling parties sold all of their shares in the Company except for 250
shares retained by Sarah Steiner Shirey and 131,760 shares owned by Ridge
Properties, Inc. of which certain of the selling parties have a significant
minority interest.
The
repurchase of these shares was approved by the Board of Directors based, in
part, upon receiving an opinion from the Company's financial advisor, SunTrust
Robinson Humphrey that the purchase price was fair to the Company. The Company
expects the transaction to be accretive to earnings per share in
2006.
All
repurchased shares will be held as treasury shares.
In
addition to Latrobe 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.
Commercial Bank & Trust of PA also serves its customer base from an Internet
banking site (http://www.cbthebank.com)
and an
automated TouchTone Teller banking system. The company operates an asset
management & trust division headquartered in Greensburg,
Pennsylvania.
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.