Commercial National Reports September 30, 2023 Results

Rhea-AI Summary

Commercial National Financial Corporation (CNAF) has reported its Q3 2023 results, with earnings of $881,000 compared to $677,000 in Q3 2022. Tier one risk-based, total risk-based, leverage, and common equity tier one capital ratios at September 30, 2023, were 23.98%, 24.46%, 13.49%, and 23.98% respectively.

Positive

• Commercial National Financial Corporation (CNAF) reported a positive earnings growth of 30.1% in Q3 2023 compared to Q3 2022.
• The company's tier one risk-based, total risk-based, leverage, and common equity tier one capital ratios are strong at 23.98%, 24.46%, 13.49%, and 23.98% respectively.

Negative

• None.

LATROBE, PA / ACCESSWIRE / October 23, 2023 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2023. The Company earned $881,000 (or $0.31 per average share outstanding) in the third quarter 2023 compared to $677,000 (or $0.23 per average share outstanding) in the third quarter of 2022. The Company earned $2,568,000 (or $0.90 per average share outstanding) for the nine-month period ended September 30, 2023 and $2,582,000 (or $0.90 per average share outstanding) for the nine-month period ended September 30, 2022. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at September 30, 2023 were 23.98%, 24.46%, 13.49% and 23.98% respectively. Tier one capital was $57,848,000 and total risk-based capital was $59,010,000 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 -83% of total deposits at third 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 467,957 shares, or 16.36% on September 30, 2023.

As disclosed each year in the Annual Report to Shareholders, on September 30, 2023, the Company employed 82 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)

		September 30,				December 31,				September 30,
		2023				2022				2022
ASSETS
Cash and due from banks on demand		$	5,601			$	5,177			$	2,142
Interest bearing deposits with banks			558				1,158				7,033
Total cash and cash equivalents			6,159				6,335				9,175
Securities available for sale			157,764				170,268				167,952
Restricted investments in bank stock			1,121				630				758
Loans			193,852				201,423				201,714
Allowance for loan losses			(1,162)				(1,535)				(1,539)
Net loans			192,690				199,888				200,175
Premises and equipment			2,882				2,517				2,571
Accrued interest receivable			2,644				2,203				2,211
Investment in Life Insurance			18,390				17,987				18,046
Other real estate owned			-				-				2,160
Other assets			9,355				8,546				9,316
Total assets		$	391,005			$	408,374			$	412,364
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing		$	162,418			$	165,551			$	171,298
Interest bearing			175,494				201,914				198,288
Total deposits			337,912				367,465				369,586
Short-term borrowings			24,100				6,715				11,081
Other liabilities			1,670				1,736				1,729
Total liabilities			363,682				375,916				382,396
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			63,409				63,073				62,492
Accumulated other comprehensive (loss) income			(30,742)				(25,271)				(27,180)
Less treasury stock, at cost, 739,047 shares in 2023 and 2022			(12,544)				(12,544)				(12,544)
Total shareholders' equity			27,323				32,458				29,968
Total liabilities and shareholders' equity		$	391,005			$	408,374			$	412,364

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

		Three Months								Nine Months
		Ended September 30								Ended September 30
		2023				2022				2023				2022
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
INTEREST INCOME:
Interest and fees on loans		$	2,044			$	2,071			$	6,153			$	6,296
Interest and dividends on securities:
Taxable			1,137				1,172				3,465				3,522
Exempt from federal income taxes			502				521				1,541				1,550
Other			46				22				112				39
Total interest income			3,729				3,786				11,271				11,407
INTEREST EXPENSE:
Interest on deposits			37				42				109				147
Interest on short-term borrowings			363				78				859				95
Total interest expense			400				120				968				242
NET INTEREST INCOME			3,329				3,666				10,303				11,165
PROVISION (CREDIT) FOR LOAN LOSSES			(250)				(575)				(372)				(561)
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES			3,579				4,241				10,675				11,726
OTHER OPERATING INCOME:
Asset management and trust			339				344				1,014				1,077
Service charges on deposit accounts			167				172				485				491
Net Security gains/(losses)			-				(1)				-				(11)
Loss on sale of OREO			-				(990)				-				(1,162)
Income from investment in life insurance			127				125				378				373
Other income			19				24				90				149
Total other operating income			652				(326)				1,967				917
OTHER OPERATING EXPENSES:
Salaries and employee benefits			1,933				1,819				5,754				5,462
Net occupancy			194				171				581				542
Furniture and equipment			129				115				395				358
Pennsylvania shares tax			74				148				220				455
Legal and professional			150				134				427				417
FDIC insurance			50				29				140				89
Other real estate expense			-				17				-				194
Other expenses			743				798				2,365				2,379
Total other operating expenses			3,273				3,231				9,882				9,896
INCOME (LOSS) BEFORE INCOME TAXES			958				684				2,760				2,747
Income tax expense			77				7				192				165
Net income (loss)		$	881			$	677			$	2,568			$	2,582
Average Shares Outstanding			2,860,953				2,860,953				2,860,953				2,860,953
Earnings (Loss) Per Share		$	0.31			$	0.23			$	0.90			$	0.90

SOURCE: Commercial National Financial Corporation

View source version on accesswire.com:
https://www.accesswire.com/795496/commercial-national-reports-september-30-2023-results

FAQ

What were Commercial National Financial Corporation's earnings in Q3 2023?

Commercial National Financial Corporation earned $881,000 in Q3 2023.

How does Commercial National Financial Corporation's Q3 2023 earnings compare to Q3 2022?

Commercial National Financial Corporation's earnings in Q3 2023 increased by 30.1% compared to Q3 2022.

What are the capital ratios of Commercial National Financial Corporation as of September 30, 2023?

Commercial National Financial Corporation's tier one risk-based, total risk-based, leverage, and common equity tier one capital ratios as of September 30, 2023, are 23.98%, 24.46%, 13.49%, and 23.98% respectively.