Commercial National Reports June 30, 2023 Results

LATROBE, PA / ACCESSWIRE / July 31, 2023 / Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended June 30, 2023. The Company earned $842,000 (or $0.29 per average share outstanding) in the second quarter 2023 compared to $932,000 (or $0.33 per average share outstanding) in the second quarter of 2022. The Company earned $1,687,000 (or $0.59 per average share outstanding) for the six-month period ended June 30, 2023 and $1,905,000 (or $0.67 per average share outstanding) for the six-month period ended June 30, 2022. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at June 30, 2023 were 23.77%, 24.36%, 13.31% and 23.77% respectively. Tier one capital was $57,659,000 and total risk-based capital was $ 59,071,000 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 rising interest rates. Fully insured well diversified core deposits comprised 85% of total deposits at second quarter-end 2023 which favorably compares to national banking industry metrics.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 489,660 shares, or 17.12% on June 30, 2023.

As disclosed each year in the Annual Report to Shareholders, on June 30, 2023, the Company employed 81 people in full-time and part-time positions. Thirty-three (33) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty (30) employees are full-time and there are three (3) part-time employees. The Company has had unionized employees since 1972. In October 2018, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 16, 2019. The labor agreement will expire in February 2024. 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)

		June 30,				December 31				June 30,
		2023				2022				2022
ASSETS
Cash and due from banks on demand		$	5,380			$	5,177			$	4,691
Interest bearing deposits with banks			1,223				1,158				4,790
Total cash and cash equivalents			6,603				6,335				9,481
Securities available for sale			169,024				170,268				177,879
Restricted investments in bank stock			1,317				630				645
Loans			196,031				201,423				208,362
Allowance for loan losses			(1,412)				(1,535)				(2,115)
Net loans			194,619				199,888				206,247
Premises and equipment			2,820				2,517				2,635
Accrued interest receiable			2,220				2,203				2,211
Investment in Life Insurance			18,255				17,987				17,921
Other real estate owned			-				-				3,150
Other assets			7,515				8,546				6,813
Total assets		$	402,373			$	408,374			$	426,982
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	162,680			$	165,551			$	165,932
Interest bearing			178,621				201,914				208,922
Total deposits			341,301				367,465				374,854
Short-term borrowings			24,753				6,715				12,736
Other liabilities			1,755				1,736				1,700
Total liabilities			367,809				375,916				389,290
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 2023 and 2022			7,200				7,200				7,200
Retained earnings			63,271				63,073				62,558
Accumulated other comprehensive (loss) income			(23,364)				(25,271)				(19,522)
Less treasury stock, at cost, 739,047 shares in 2023 and 2022			(12,544)				(12,544)				(12,544)
Total shareholders' equity			34,563				32,458				37,692
Total liabilities and shareholders' equity		$	402,372			$	408,374			$	426,982

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)

		Three Months								Six Months
		Ended June 30								Ended June 30
		2023				2022				2023				2022
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
INTEREST INCOME:
Interest and fees on loans		$	2,055			$	2,102			$	4,109			$	4,225
Interest and dividends on securities:
Taxable			1,153				1,175				2,328				2,350
Exempt from federal income taxes			521				523				1,039				1,029
Other			36				9				66				17
Total Interest income			3,765				3,809				7,542				7,621
INTEREST EXPENSE:
Interest on deposits			34				49				72				105
Interest on short-term borrowings			281				17				496				17
Total Interest expense			315				66				568				122
NET INTEREST INCOME			3,450				3,743				6,974				7,499
PROVISION (CREDIT) FOR LOAN LOSSES			(122)				-				(122)				14
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES			3,572				3,743				7,096				7,485
OTHER OPERATING INCOME:
Asset management and trust income			338				358				675				733
Service charges on deposit accounts			162				167				318				319
Net Security losses			-				(23)				-				(10)
Losses on other real estate			-				(185)				-				(172)
Income from investment in life insurance			125				125				251				248
Other income			21				78				71				125
Total other operating income			646				520				1,315				1,243
OTHER OPERATING EXPENSES:
Salaries and employee benefits			1,925				1,758				3,821				3,643
Net occupancy expense			173				167				387				371
Furniture and equipment			140				130				266				243
Pennsylvania shares tax			73				148				146				307
Legal and professional			151				172				277				283
FDIC insurance			59				36				90				60
Other real estate expense			-				15				-				177
Other expenses			800				832				1,622				1,581
Total other operating expenses			3,321				3,258				6,609				6,665
INCOME BEFORE INCOME TAXES			897				1,005				1,802				2,063
Income tax expense			55				73				115				158
Net income		$	842			$	932			$	1,687			$	1,905
Average Shares Outstanding			2,860,953				2,860,953				2,860,953				2,860,953
Earnings Per Share		$	0.29			$	0.33			$	0.59			$	0.67

SOURCE: Commercial National Financial Corporation

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The Commercial National Financial Pa Stock at the time of publication of the news with a raise of +0,40 % to 12,50USD on Nasdaq OTC stock exchange (29. Juli 2023, 02:10 Uhr).