Commercial National Reports June 30, 2021 Earnings

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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
wpiper@cbthebank.com
724-537-9923

SOURCE: Commercial National Financial Corporation



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