Commercial National Reports December 31, 2021 Earnings - Amended

Rhea-AI Summary

Commercial National Financial Corporation (OTCQX:CNAF) reported its financial results for Q4 2021, earning $1,707,000 ($0.60 per share) compared to $2,512,000 ($0.88 per share) in Q4 2020. For the full year, earnings were $4,685,000 ($1.64 per share) down from $5,713,000 ($2.00 per share) in 2020, reflecting a substantial 2020 loan loss reserve release of $1,700,000. Despite the decline, the company's solid capital position supports ongoing quarterly dividends of $0.26 per share. As of December 31, 2021, executive ownership accounted for 17.09% of shares. The company operates seven banking facilities in Pennsylvania.

Positive

• Quarterly dividends of $0.26 per share are maintained.
• Strong capital position supports ongoing shareholder value.

Negative

• Q4 2021 earnings declined by 32% year-over-year.
• Full-year earnings decreased by 18% compared to 2020.

LATROBE, PA / ACCESSWIRE / March 22, 2022 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended December 31, 2021. The Company earned $1,707,000 (or $0.60 per average share outstanding) in the fourth quarter 2021 compared to $2,512,000 (or $0.88 per average share outstanding) in the fourth quarter of 2020. The Company earned $4,685,000 (or $1.64 per average share outstanding) for the twelve-month period ended December 31, 2021 and $5,713,000 (or $2.00 per average share outstanding) for the twelve-month period ended December 31, 2020. Fourth quarter 2020 results included a $1,700,000 loan loss reserve release.

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 489,071 shares, or 17.09% on December 31, 2021.

As disclosed each year in the Annual Report to Shareholders, on December 31, 2021, the Company employed 79 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, twenty-nine (29) employees are full-time and there are two (2) 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 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 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.cbthebank.com) and an automated TouchTone Teller banking system.

CONTACT

Wendy Piper
PO BOX 429
900 Ligonier Street
Latrobe, PA 15650
Phone: 7245379923
wpiper@cbthebank.com

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)

		December 31				December 31
		2021				2020
ASSETS
Cash and due from banks on demand		$	3,168			$	3,744
Interest bearing deposits with banks			30,164				24,596
Total cash and cash equivalents			33,332				28,340
Securities available for sale			194,936				133,317
Restricted investments in bank stock			145				148
Loans			216,639				241,080
Allowance for loan losses			(2,093	)			(1,991	)
Net loans			214,546				239,089
Premises and equipment			2,580				2,805
Investment in Life Insurance			17,655				19,070
Other Real estate owned			3,399				-
Life Insurance receivable			2,365				-
Other assets			3,017				2,662
Total assets		$	471,975			$	425,431
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	167,513			$	148,398
Interest bearing			235,299				203,001
Total deposits			402,812				351,399
Other liabilities			4,181				4,605
Total liabilities			406,993				356,004
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
Retained earnings			62,141				63,292
Accumulated other comprehensive income			8,185				11,479
Less treasury stock, at cost,
739,047 shares in 2021 and 2020			(12,544	)			(12,544	)
Total shareholders' equity			64,982				69,427
Total liabilities and shareholders' equity		$	471,975			$	425,431

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

		Three Months								Twelve Months
		Ended December 31								Ended December 31
		2021				2020				2021				2020
INTEREST INCOME:
Interest and fees on loans			2,197				2,584			$	9,536			$	10,663
Interest and dividends on securities:
Taxable			1,015				985				3,956				4,036
Exempt from federal income taxes			299				254				944				1,303
Other			24				7				70				46
Total Interest income			3,535				3,830				14,506				16,048
INTEREST EXPENSE:
Interest on deposits			56				63				228				403
Interest on short-term borrowings			-				2				-				147
Total Interest expense			56				65				228				550
NET INTEREST INCOME			3,479				3,765				14,278				15,498
PROVISION(CREDIT) FOR LOAN LOSSES			550				(1,700	)			550				400
NET INTEREST INCOME AFTER
PROVISION(CREDIT) FOR LOAN LOSSES			2,929				5,465				13,728				15,098
OTHER OPERATING INCOME:
Asset management and trust income			379				380				1,505				1,396
Service charges on deposit accounts			174				166				690				635
Net Security gains/losses			1,455				55				1,490				558
Income from investment in life insurance			549				117				917				1,192
Other income			122				27				235				160
Total other operating income			2,679				745				4,837				3,941
OTHER OPERATING EXPENSES
Salaries and employee benefits			2,062				1,809				7,563				7,435
Net occupancy expense			207				206				790				800
Furniture and equipment			119				120				478				438
Pennsylvania shares tax			165				155				644				581
Legal and professional			262				113				569				446
FDIC Insurance expense			22				30				110				65
Other expenses			868				697				3,010				2,705
Total other operating expenses			3,705				3,130				13,164				12,470
INCOME BEFORE INCOME TAXES			1,903				3,080				5,401				6,569
Income tax (benefit) expense			196				568				716				856
Net income		$	1,707			$	2,512			$	4,685			$	5,713
Average Shares Outstanding			2,860,953				2,860,953				2,860,953				2,860,953
Earnings Per Share			0.60				0.88				1.64				2.00

SOURCE: Commercial National Financial Corporation

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FAQ

What were the Q4 2021 earnings for CNAF?

CNAF reported Q4 2021 earnings of $1,707,000, or $0.60 per share.

How do CNAF's 2021 earnings compare to 2020?

For 2021, CNAF earned $4,685,000 compared to $5,713,000 in 2020, a decline of 18%.

Is CNAF maintaining its dividend payments?

Yes, CNAF is maintaining its quarterly dividend of $0.26 per share.