LATROBE, PA / ACCESSWIRE / October 28, 2024 / Commercial National Financial Corporation (OTCQX:CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2024. The Company earned $325,000 (or $0.11 per average share outstanding) in the third quarter 2024 compared to $881,000 (or $0.31 per average share outstanding) in the third quarter of 2023. The Company earned $1,205,000 (or $0.42 per average share outstanding) for the nine-month period ended September 30, 2024 and $2,568,000 (or $0.90 per average share outstanding) for the nine-month period ended September 30, 2023.
At year-end 2023 there was strong market expectation for timely and extensive Federal Reserve Bank monetary policy easing beginning by first quarter-end 2024. However, such easing, which would materially benefit the Company's overall financial condition and performance by reducing marginal funding cost along with the deposit footing impeding attractiveness of non-deposit money market alternatives, only belatedly initiated in mid-September 2024. Undistributed earnings from 2022 and 2023 were at last fully utilized during 2024's third quarter to provide limited carryover capacity in augmenting 2024 dividend declarations as per regional Federal Reserve Bank non-objection. Future dividend declarations will be determined by prevailing earnings level expectations which continue to be influenced by a now receding multiple decade high in Federal Reserve Bank driven funding cost.
Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at September 30, 2024 were 24.55%, 25.02%, 13.82% and 24.55% respectively. Tier one capital was $56,582,000 and total risk-based capital was $57,666,000 while book capital reflected a temporary after-tax accumulated other comprehensive loss stemming from net unrealized securities available-for-sale market value depreciation. As with many other insured depository institutions nation-wide, the Company's securities portfolio has been adversely impacted by generationally elevated interest rates. The Company's third quarter-end 2024 asset quality remained exceptionally strong. Fully insured well diversified core deposits comprised 85.4% of total deposits at third quarter-end 2024 which favorably compares to national banking industry metrics. Overhead costs in 2024 reflect optimum staffing to sustain operational continuity in the community branch banking office network along with area specific sales team focus.
Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 460,757 shares, or 16.11% on September 30, 2024.
As disclosed each year in the Annual Report to Shareholders, on September 30, 2024, the Company employed 80 people in full-time and part-time positions. Thirty four (34) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty one (31) employees are full-time and there are three (3) part-time employees. The Company has had unionized employees since 1972. In November 2023, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 15, 2024. The labor agreement will expire in February 2029. The Commonwealth of Pennsylvania and the National Labor Relations Board both afford protection to the organized status of pre-existing collective bargaining units. The Company has been advised that bargaining unit status limits the Company's strategic options relative to those of non-unionized insured depository institutions. The Company continues to consider this as a factor in its strategic and capital management decisions.
The Company operates seven community banking facilities in Hempfield Township, Latrobe, Ligonier, 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.cnbthebankonline.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
(Unaudited)
(Dollars in thousands, except per share data)
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
||||
ASSETS |
|
|
|
|
|
|
|
|
|
|||
Cash and due from banks on demand |
|
$ |
7,087 |
|
|
$ |
4,274 |
|
|
$ |
5,601 |
|
Interest bearing deposits with banks |
|
|
2,917 |
|
|
|
1,172 |
|
|
|
558 |
|
Total cash and cash equivalents |
|
|
10,004 |
|
|
|
5,446 |
|
|
|
6,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale |
|
|
163,738 |
|
|
|
161,832 |
|
|
|
157,764 |
|
Restricted investments in bank stock |
|
|
1,712 |
|
|
|
1,244 |
|
|
|
1,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
185,519 |
|
|
|
192,812 |
|
|
|
193,852 |
|
Allowance for credit losses |
|
|
(1,085 |
) |
|
|
(1,162 |
) |
|
|
(1,162 |
) |
Net loans |
|
|
184,434 |
|
|
|
191,650 |
|
|
|
192,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
2,834 |
|
|
|
2,866 |
|
|
|
2,882 |
|
Accrued interest receivable |
|
|
2,546 |
|
|
|
2,199 |
|
|
|
2,644 |
|
Investment in Life Insurance |
|
|
18,948 |
|
|
|
18,534 |
|
|
|
18,390 |
|
Other assets |
|
|
6,067 |
|
|
|
6,848 |
|
|
|
9,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
390,283 |
|
|
$ |
|
|
|
$ |
391,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
157,196 |
|
|
$ |
156,767 |
|
|
$ |
162,418 |
|
Interest bearing |
|
|
153,323 |
|
|
|
170,508 |
|
|
|
175,494 |
|
Total deposits |
|
|
310,519 |
|
|
|
327,275 |
|
|
|
337,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
39,697 |
|
|
|
25,317 |
|
|
|
24,100 |
|
Other liabilities |
|
|
1,631 |
|
|
|
1,891 |
|
|
|
1,670 |
|
Total liabilities |
|
|
351,847 |
|
|
|
354,483 |
|
|
|
363,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2024 and 2023 |
|
|
7,200 |
|
|
|
7,200 |
|
|
|
7,200 |
|
Retained earnings |
|
|
62,119 |
|
|
|
63,145 |
|
|
|
63,409 |
|
Accumulated other comprehensive loss |
|
|
(18,339 |
) |
|
|
(21,665 |
) |
|
|
(30,742 |
) |
Less treasury stock, at cost, 739,047 shares in 2024 and 2023 |
|
|
(12,544 |
) |
|
|
(12,544 |
) |
|
|
(12,544 |
) |
Total shareholders' equity |
|
|
38,436 |
|
|
|
36,136 |
|
|
|
27,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
390,283 |
|
|
$ |
390,619 |
|
|
$ |
391,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
|
|
Three Months |
|
|
Nine Months |
|
||||||||||
|
|
Ended September 30 |
|
|
Ended September 30 |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and fees on loans |
|
$ |
2,046 |
|
|
$ |
2,044 |
|
|
$ |
6,159 |
|
|
$ |
6,153 |
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,276 |
|
|
|
1,137 |
|
|
|
3,551 |
|
|
|
3,465 |
|
Exempt from federal income taxes |
|
|
272 |
|
|
|
502 |
|
|
|
1,100 |
|
|
|
1,541 |
|
Other |
|
|
58 |
|
|
|
46 |
|
|
|
158 |
|
|
|
112 |
|
Total interest income |
|
|
3,652 |
|
|
|
3,729 |
|
|
|
10,968 |
|
|
|
11,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
46 |
|
|
|
37 |
|
|
|
160 |
|
|
|
109 |
|
Interest on short-term borrowings |
|
|
529 |
|
|
|
363 |
|
|
|
1,359 |
|
|
|
859 |
|
Total interest expense |
|
|
575 |
|
|
|
400 |
|
|
|
1,519 |
|
|
|
968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
3,077 |
|
|
|
3,329 |
|
|
|
9,449 |
|
|
|
10,303 |
|
CREDIT FOR CREDIT LOSSES |
|
|
(35 |
) |
|
|
(250 |
) |
|
|
(74 |
) |
|
|
(372 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT FOR CREDIT LOSSES |
|
|
3,112 |
|
|
|
3,579 |
|
|
|
9,523 |
|
|
|
10,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset management and trust |
|
|
362 |
|
|
|
339 |
|
|
|
1,076 |
|
|
|
1,014 |
|
Service charges on deposit accounts |
|
|
166 |
|
|
|
167 |
|
|
|
478 |
|
|
|
485 |
|
Net Security gains |
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
Income from investment in life insurance |
|
|
130 |
|
|
|
127 |
|
|
|
389 |
|
|
|
378 |
|
Other income |
|
|
23 |
|
|
|
19 |
|
|
|
95 |
|
|
|
90 |
|
Total other operating income |
|
|
681 |
|
|
|
652 |
|
|
|
2,041 |
|
|
|
1,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
2,051 |
|
|
|
1,933 |
|
|
|
6,110 |
|
|
|
5,754 |
|
Net occupancy |
|
|
214 |
|
|
|
194 |
|
|
|
639 |
|
|
|
581 |
|
Furniture and equipment |
|
|
140 |
|
|
|
129 |
|
|
|
418 |
|
|
|
395 |
|
Pennsylvania shares tax |
|
|
84 |
|
|
|
74 |
|
|
|
244 |
|
|
|
220 |
|
Legal and professional |
|
|
154 |
|
|
|
150 |
|
|
|
438 |
|
|
|
427 |
|
FDIC insurance |
|
|
47 |
|
|
|
50 |
|
|
|
139 |
|
|
|
140 |
|
Other expenses |
|
|
795 |
|
|
|
743 |
|
|
|
2,426 |
|
|
|
2,365 |
|
Total other operating expenses |
|
|
3,485 |
|
|
|
3,273 |
|
|
|
10,414 |
|
|
|
9,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
308 |
|
|
|
958 |
|
|
|
1,150 |
|
|
|
2,760 |
|
Income tax (benefit)/expense |
|
|
(17 |
) |
|
|
77 |
|
|
|
(55 |
) |
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
325 |
|
|
$ |
881 |
|
|
$ |
1,205 |
|
|
$ |
2,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding |
|
|
2,860,953 |
|
|
|
2,860,953 |
|
|
|
2,860,953 |
|
|
|
2,860,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share |
|
$ |
0.11 |
|
|
$ |
0.31 |
|
|
$ |
0.42 |
|
|
$ |
0.90 |
|
CONTACT:
Wendy Piper
+17245379923
wpiper@cbthebank.com
SOURCE: Commercial National Financial Corporation
View the original press release on accesswire.com
