Commercial National Reports June 30, 2021 Earnings

LATROBE, PA / ACCESSWIRE / July 27, 2021 / 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, 2021. The Company earned $1,001,000 (or $0.35 per average share outstanding) in the second quarter 2021 compared to $1,452,000 (or $0.51 per average share outstanding) in the second quarter of 2020. The Company earned $2,069,000 (or $0.72 per average share outstanding) for the six-month period ended June 30, 2021 and $3,268,000 (or $1.14 per average share outstanding) for the six-month period ended June 30, 2020. Pre-tax realized securities gains of $505,000 and tax free life insurance proceeds of $730,000 favorably influenced 2020 earnings results.

The Company's strong capital position in conjunction with recent core earnings results currently remain supportive of the regular $0.26 quarterly common stock cash dividend payments to shareholders. Providing an attractive and reliable cash dividend income stream to all our shareholders through the safe and sound operation of the subsidiary bank is a long-standing top priority for the Company.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 468,212 shares, or 16.37% on June 30, 2021.

As disclosed each year in the Annual Report to Shareholders, on June 30, 2021, the Company employed 81 people in full-time and part-time positions. Thirty one (31) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty (30) employees are full-time and there is one (1) part-time employee. 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 may limit 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 eight community banking facilities in Greensburg, 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.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.

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except per share data)
				June 30,		December 31,		June 30,
				2021		2020		2020
ASSETS
Cash and due from banks on demand				$ 4,806		$ 3,744		$ 8,497
Interest bearing deposits with banks				58,417		24,596		615
	Total cash and cash equivalents			63,223		28,340		9,112
Securities available for sale				128,633		133,317		143,102
Restricted investments in bank stock				145		148		752
Loans				234,532		241,080		254,932
	Allowance for loan losses			(1,991)		(1,991)		(2,069)
		Net loans		232,541		239,089		252,863
Premises and equipment				2,629		2,805		2,797
Investment in Life Insurance				19,332		19,070		18,819
Other assets				2,994		2,662		3,917
	Total assets			$ 449,497		$ 425,431		$ 431,362
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
	Deposits:
		Non-interest bearing		$ 164,726		$ 148,398		$ 148,316
		Interest bearing		215,455		203,001		196,672
		Total deposits		380,181		351,399		344,988
	Short-term borrowings			-		-		15,047
	Other liabilities			4,067		4,605		4,811
		Total liabilities		384,248		356,004		364,846
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 2021 and 2020
				7,200		7,200		7,200
	Retained earnings			61,012		63,292		62,335
	Accumulated other comprehensive income			9,581		11,479		9,525
	Less treasury stock, at cost, 739,047 shares in 2021 and 2020			(12,544)		(12,544)		(12,544)
		Total shareholders' equity		65,249		69,427		66,516
		Total liabilities and shareholders' equity		$ 449,497		$ 425,431		$ 431,362

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
				2021		2020		2021		2020
				(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
	Interest and fees on loans			$ 2,434		$ 2,754		$ 4,949		$ 5,360
	Interest and dividends on securities:
		Taxable		981		1,028		1,966		2,065
		Exempt from federal income taxes		217		347		445		740
	Other			13		10		20		34
	Total Interest income			3,645		4,139		7,380		8,199
INTEREST EXPENSE:
	Interest on deposits			58		114		115		273
	Interest on short-term borrowings			-		19		-		139
	Total Interest expense			58		133		115		412
NET INTEREST INCOME				3,587		4,006		7,265		7,787
PROVISION FOR LOAN LOSSES				-		400		-		400
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES				3,587		3,606		7,265		7,387
OTHER OPERATING INCOME:
	Asset management and trust income			380		335		738		678
	Service charges on deposit accounts			172		143		338		303
	Net Security gains			45		505		46		505
	Income from investment in life insurance			122		117		245		228
	Life insurance proceeds			-		-		-		730
	Other income			37		28		91		100
	Total other operating income			756		1,128		1,458		2,544
OTHER OPERATING EXPENSES:
	Salaries and employee benefits			1,822		1,864		3,653		3,828
	Net occupancy expense			200		189		422		401
	Furniture and equipment			132		112		245		208
	Pennsylvania shares tax			164		142		314		284
	Legal and professional			109		109		210		210
	FDIC insurance			31		12		61		12
	Other expenses			704		591		1,385		1,300
	Total other operating expenses			3,162		3,019		6,290		6,243
INCOME BEFORE INCOME TAXES				1,181	-	1,715		2,433		3,688
Income tax expense				180		263		364		420
	Net income			$ 1,001		$ 1,452		$ 2,069		$ 3,268
Average Shares Outstanding				2,860,953		2,860,953		2,860,953		2,860,953
Earnings Per Share				$ 0.35		$ 0.51		$ 0.72		$ 1.14

Contact Information:

Wendy S. Piper
Senior Vice President
Secretary/Treasurer
[e-mail]
724-537-9923

SOURCE: Commercial National Financial Corporation

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