Commercial National Reports March 31, 2025 Results

Rhea-AI Summary

Commercial National Financial (OTCQX:CNAF) has reported its Q1 2025 financial results. The company earned $431,000 ($0.15 per share), down from $527,000 ($0.18 per share) in Q1 2024. The first quarter-end 2025 tax equivalent net interest margin was 3.53%.

Key highlights include:

• 87.42% of total deposits are fully insured well-diversified core deposits
• Strong capital ratios: Tier one risk-based (25.19%), total risk-based (25.57%), leverage (14.15%)
• Tier one capital of $56,933,000 and total risk-based capital of $57,888,000
• Executive officers and directors own 460,757 shares (16.11%)

The company operates seven community banking facilities in Pennsylvania with 78 employees, including 33 unionized workers under a labor agreement extending to February 2029.

Positive

• Strong capital ratios significantly exceeding industry benchmarks
• High percentage (87.42%) of fully insured core deposits
• Exceptionally strong asset quality
• Effective overhead cost containment through efficient staffing

Negative

• Q1 2025 earnings declined to $431,000 from $527,000 in Q1 2024
• EPS decreased to $0.15 from $0.18 year-over-year
• Securities portfolio adversely impacted by high market interest rates
• Total assets decreased to $369,657,000 from $384,917,000 year-over-year

LATROBE, PA / ACCESS Newswire / April 18, 2025 / Commercial National Financial Corporation (OTCQX:CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2025. The Company earned $431,000 (or $0.15 per average share outstanding) in the first quarter 2025 compared to $527,000 (or $0.18 per average share outstanding) in the first quarter of 2024.

The Company's first quarter-end 2025 tax equivalent net interest margin was 3.53%. Effective overhead cost containment was primarily attributable to more efficient staffing for operational continuity. Fully insured well diversified core deposits comprised 87.42% of total deposits which very favorably compares to national banking industry metrics. Asset quality remained exceptionally strong across-the-board. Capital adequacy and strength greatly exceeded major banking industry benchmarks. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at March 31, 2025 were 25.19%, 25.57%, 14.15% and 25.19% respectively. Tier one capital was $56,933,000 and total risk-based capital was $57,888,000 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 nationwide, the Company's securities portfolio has been adversely impacted by generationally elevated market interest rates and yields.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 460,757 shares, or 16.11% on March 31, 2025.

As disclosed each year in the Annual Report to Shareholders, on March 31, 2025, the Company employed 78 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 November 2023, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 15, 2024. The labor agreement will expire in February 2029. 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,
		2025				2024				2024
ASSETS
Cash and due from banks on demand		$	1,552			$	3,743			$	2,766
Interest bearing deposits with banks			4,254				1,322				1,830
Cash and Cash Equivalents			5,806				5,065				4,596
Securities available for sale			152,374				156,076				157,498
Restricted investments in bank stock			1,371				1,671				1,025
Loans			178,819				181,452				191,151
Allowance for credit losses			(865	)			(865	)			(1,120	)
Net loans			177,954				180,587				190,031
Premises and equipment			2,997				2,790				2,906
Accrued Interest receivable			2,487				2,202				2,521
Investment in life insurance			19,216				19,083				18,672
Other Assets			7,452				7,381				7,668
Total assets		$	369,657			$	374,855			$	384,917
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing		$	147,353				145,735			$	157,567
Interest bearing			157,061				155,826				169,758
Total deposits			304,414				301,561				327,325
Short-term borrowings			29,662				38,665				21,633
Other liabilities			1,789				1,854				1,783
Total liabilities			335,865				342,080				350,741
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 2025 and 2024			7,200				7,200				7,200
Retained earnings			62,556				62,440				62,928
Accumulated other comprehensive income			(23,420	)			(24,321	)			(23,408	)
Treasury stock, at cost, 739,047 shares
in 2025 and 2024			(12,544	)			(12,544	)			(12,544	)
Total shareholders' equity			33,792				32,775				34,176
Total liabilities and shareholders' equity		$	369,657			$	374,855			$	384,917

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,
		2025				2024
INTEREST INCOME
Interest and fees on loans		$	2,027			$	2,058
Interest and dividends on securities:
Taxable			1,086				1,105
Exempt from federal income taxes			442				449
Other			53				42
Total Interest income			3,608				3,654
INTEREST EXPENSE
Interest on deposits			49				60
Interest on short-term borrowings			408				369
Total Interest expense			457				429
NET INTEREST INCOME			3,151				3,225
CREDIT FOR CREDIT LOSSES			-				(39	)
NET INTEREST INCOME AFTER
CREDIT FOR CREDIT LOSSES			3,151				3,264
OTHER OPERATING INCOME
Asset management and trust income			379				352
Service charges on deposit accounts			147				152
Net Security gains			(14	)			3
Income from investment in life insurance			133				130
Other income			43				54
Total other operating income			688				691
OTHER OPERATING EXPENSES
Salaries and employee benefits			1,953				1,991
Net occupancy expense			234				231
Furniture and equipment			134				141
Pennsylvania shares tax			80				77
Legal and professional			133				131
FDIC Insurance			44				46
Other expenses			850				809
Total other operating expenses			3,428				3,426
INCOME BEFORE INCOME TAXES			411				529
Income tax (benefit) expense			(20	)			2
Net income		$	431			$	527
Average Shares Outstanding			2,860,953				2,860,953
Earnings Per Share		$	0.15			$	0.18

CONTACT:
Wendy Piper
wpiper@cbthebank.com

SOURCE: Commercial National Financial Corp. (Pennsylvania)

View the original press release on ACCESS Newswire

FAQ

What were Commercial National Financial 's (CNAF) earnings per share in Q1 2025?

CNAF reported earnings of $0.15 per share in Q1 2025, compared to $0.18 per share in Q1 2024.

What percentage of CNAF's deposits are fully insured core deposits?

87.42% of CNAF's total deposits are fully insured well-diversified core deposits.

What are CNAF's capital ratios as of March 31, 2025?

CNAF's capital ratios are: Tier one risk-based (25.19%), total risk-based (25.57%), leverage (14.15%), and common equity tier one (25.19%).

How many banking facilities does CNAF operate and where?

CNAF operates seven community banking facilities across Pennsylvania in Hempfield Township, Latrobe, Ligonier, Unity Township and West Newton.