Commercial National Reports March 31, 2023 Results

LATROBE, PA / ACCESSWIRE / April 28, 2023 / Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2023. The Company earned $845,000 (or $0.30 per average share outstanding) in the first quarter 2023 compared to $973,000 (or $0.34 per average share outstanding) in the first quarter of 2022. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at March 31, 2023 were 23.12%, 23.74%, 13.14% and 23.12% respectively. Tier one capital was $57,499,000 and total risk-based capital was $59,034,000 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 over 85% of total deposits at first 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 March 31, 2023.

As disclosed each year in the Annual Report to Shareholders, on March 31, 2023, the Company employed 80 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)

	March 31,				December 31				March 31,
	2023				2022				2022
ASSETS
Cash and due from banks on demand	$	4,306			$	5,177			$	4,164
Interest bearing deposits with banks		1,068				1,158				3,776
Cash and Cash Equivalents		5,374				6,335				7,940
Securities available for sale		174,661				170,268				195,746
Restricted investments in bank stock		1,018				630				301
Loans		198,466				201,423				214,423
Allowance for loan losses		(1,535	)			(1,535	)			(2,115	)
Net loans		196,931				199,888				212,308
Premises and equipment		2,535				2,517				2,591
Accrued Interest receivable		2,672				2,203
Investment in life insurance		18,121				17,987				17,788
Other Real Estate Owned		-				-				3,335
Other Assets		7,390				8,546				6,129
Total assets	$	408,702			$	408,374			$	446,138
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing	$	163,477			$	165,551			$	167,713
Interest bearing		187,481				201,914				222,041
Total deposits		350,958				367,465				389,754
Short-term borrowings		20,076				6,715				4,063
Other liabilities		1,561				1,736				1,694
Total liabilities		372,595				375,916				395,511
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		63,174				63,073				62,370
Accumulated other comprehensive income		(21,723	)			(25,271	)			(6,399	)
Treasury stock, at cost, 739,047 shares
in 2023 and 2022		(12,544	)			(12,544	)			(12,544	)
Total shareholders' equity		36,107				32,458				50,627
Total liabilities and shareholders' equity	$	408,702			$	408,374			$	446,138

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

	Three Months Ended				Three Months Ended
	March 31,				March 31,
	2023				2022
INTEREST INCOME
Interest and fees on loans	$	2,054			$	2,123
Interest and dividends on securities:
Taxable		1,175				1,174
Exempt from federal income taxes		518				507
Other		30				8
Total Interest income		3,777				3,812
INTEREST EXPENSE
Interest on deposits		38				56
Interest on short-term borrowings		215				-
Total Interest expense		253				56
NET INTEREST INCOME		3,524				3,756
PROVISION FOR LOAN LOSSES		-				14
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES		3,524				3,742
OTHER OPERATING INCOME
Asset management and trust income		337				375
Service charges on deposit accounts		156				152
Net Security gains		-				13
Income from investment in life insurance		126				123
Other income		50				60
Total other operating income		669				723
OTHER OPERATING EXPENSES
Salaries and employee benefits		1,896				1,885
Net occupancy expense		214				204
Furniture and equipment		126				113
Pennsylvania shares tax		73				159
Legal and professional		126				111
FDIC Insurance		31				24
Other expenses		822				911
Total other operating expenses		3,288				3,407
INCOME BEFORE INCOME TAXES		905				1,058
Income tax expense		60				85
Net income	$	845			$	973
Average Shares Outstanding		2,860,953				2,860,953
Earnings Per Share	$	0.30			$	0.34

SOURCE: Commercial National Financial Corporation

View source version on accesswire.com:
https://www.accesswire.com/751927/Commercial-National-Reports-March-31 ...


The Commercial National Financial Pa Stock at the time of publication of the news with a raise of +0,81 % to 9,95USD on Nasdaq OTC stock exchange (27. April 2023, 23:20 Uhr).