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Commercial National Reports September 30, 2024 Results

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Commercial National Financial (OTCQX:CNAF) reported Q3 2024 earnings of $325,000 ($0.11 per share), down from $881,000 ($0.31 per share) in Q3 2023. Nine-month earnings for 2024 were $1,205,000 ($0.42 per share), compared to $2,568,000 ($0.90 per share) in 2023. The company maintains strong capital ratios with tier one capital at $56,582,000. Core deposits comprise 85.4% of total deposits. The company operates seven community banking facilities in Pennsylvania with 80 employees, including 34 unionized workers under a labor agreement extending to February 2029.

Commercial National Financial (OTCQX:CNAF) ha riportato utili del terzo trimestre 2024 di $325.000 ($0,11 per azione), in calo rispetto a $881.000 ($0,31 per azione) nel terzo trimestre 2023. Gli utili dei nove mesi del 2024 sono stati di $1.205.000 ($0,42 per azione), rispetto a $2.568.000 ($0,90 per azione) nel 2023. L'azienda mantiene solidi rapporti di capitalizzazione, con un capitale di primo livello di $56.582.000. I depositi core costituiscono l'85,4% del totale dei depositi. L'azienda gestisce sette strutture bancarie comunitarie in Pennsylvania con 80 dipendenti, di cui 34 lavoratori sindacalizzati sotto un accordo di lavoro valido fino a febbraio 2029.

Commercial National Financial (OTCQX:CNAF) reportó ganancias del tercer trimestre de 2024 de $325,000 ($0.11 por acción), una disminución respecto a $881,000 ($0.31 por acción) en el tercer trimestre de 2023. Las ganancias de los nueve meses de 2024 fueron de $1,205,000 ($0.42 por acción), en comparación con $2,568,000 ($0.90 por acción) en 2023. La compañía mantiene fuertes ratios de capital con un capital de nivel uno de $56,582,000. Los depósitos básicos constituyen el 85.4% del total de depósitos. La empresa opera siete instalaciones bancarias comunitarias en Pennsylvania con 80 empleados, incluidos 34 trabajadores sindicalizados bajo un acuerdo laboral que se extiende hasta febrero de 2029.

커머셜 내셔널 파이낸셜 (OTCQX:CNAF)는 2024년 3분기 순이익이 $325,000 ($0.11 주당)으로, 2023년 3분기 $881,000 ($0.31 주당)에서 감소했다고 보고했습니다. 2024년 9개월 동안의 순이익은 $1,205,000 ($0.42 주당)으로, 2023년의 $2,568,000 ($0.90 주당)과 비교됩니다. 이 회사는 Tier 1 자본이 $56,582,000인 강력한 자본 비율을 유지하고 있습니다. 핵심 예금은 총 예금의 85.4%를 차지합니다. 이 회사는 펜실베이니아에서 80명의 직원을 둔 7개의 지역 은행 시설을 운영하며, 그 중 34명은 2029년 2월까지 연장된 노사협약에 따라 노동조합원입니다.

Commercial National Financial (OTCQX:CNAF) a annoncé un bénéfice au troisième trimestre 2024 de 325 000 $ (0,11 $ par action), en baisse par rapport à 881 000 $ (0,31 $ par action) au troisième trimestre 2023. Les bénéfices sur neuf mois pour 2024 se sont élevés à 1 205 000 $ (0,42 $ par action), contre 2 568 000 $ (0,90 $ par action) en 2023. L'entreprise maintient des ratios de capital solides avec un capital de premier niveau de 56 582 000 $. Les dépôts de base représentent 85,4 % du total des dépôts. L'entreprise exploite sept établissements bancaires communautaires en Pennsylvanie avec 80 employés, dont 34 travailleurs syndiqués sous un accord de travail valide jusqu'en février 2029.

Commercial National Financial (OTCQX:CNAF) meldete im dritten Quartal 2024 Gewinne von $325.000 ($0,11 pro Aktie), ein Rückgang von $881.000 ($0,31 pro Aktie) im dritten Quartal 2023. Die Gewinne für die ersten neun Monate 2024 betrugen $1.205.000 ($0,42 pro Aktie), im Vergleich zu $2.568.000 ($0,90 pro Aktie) im Jahr 2023. Das Unternehmen weist starke Kapitalquoten auf, mit einem Tier 1 Kapital von $56.582.000. Kern-Einlagen machen 85,4 % der Gesamteinlagen aus. Das Unternehmen betreibt sieben Gemeinschaftsbanking-Einrichtungen in Pennsylvania mit 80 Mitarbeitern, darunter 34 gewerkschaftlich organisierte Arbeiter unter einem bis Februar 2029 geltenden Tarifvertrag.

Positive
  • Strong capital ratios: Tier 1 risk-based at 24.55%, total risk-based at 25.02%
  • High proportion of core deposits at 85.4% of total deposits
  • Exceptionally strong asset quality reported for Q3 2024
Negative
  • Q3 2024 earnings decreased 63% to $325,000 from $881,000 in Q3 2023
  • Nine-month earnings declined 53% to $1,205,000 from $2,568,000 year-over-year
  • Securities portfolio adversely impacted by high interest rates
  • strategic options due to unionized workforce

LATROBE, PA / ACCESSWIRE / October 28, 2024 / Commercial National Financial Corporation (OTCQX:CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2024. The Company earned $325,000 (or $0.11 per average share outstanding) in the third quarter 2024 compared to $881,000 (or $0.31 per average share outstanding) in the third quarter of 2023. The Company earned $1,205,000 (or $0.42 per average share outstanding) for the nine-month period ended September 30, 2024 and $2,568,000 (or $0.90 per average share outstanding) for the nine-month period ended September 30, 2023.

At year-end 2023 there was strong market expectation for timely and extensive Federal Reserve Bank monetary policy easing beginning by first quarter-end 2024. However, such easing, which would materially benefit the Company's overall financial condition and performance by reducing marginal funding cost along with the deposit footing impeding attractiveness of non-deposit money market alternatives, only belatedly initiated in mid-September 2024. Undistributed earnings from 2022 and 2023 were at last fully utilized during 2024's third quarter to provide limited carryover capacity in augmenting 2024 dividend declarations as per regional Federal Reserve Bank non-objection. Future dividend declarations will be determined by prevailing earnings level expectations which continue to be influenced by a now receding multiple decade high in Federal Reserve Bank driven funding cost.

Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at September 30, 2024 were 24.55%, 25.02%, 13.82% and 24.55% respectively. Tier one capital was $56,582,000 and total risk-based capital was $57,666,000 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 generationally elevated interest rates. The Company's third quarter-end 2024 asset quality remained exceptionally strong. Fully insured well diversified core deposits comprised 85.4% of total deposits at third quarter-end 2024 which favorably compares to national banking industry metrics. Overhead costs in 2024 reflect optimum staffing to sustain operational continuity in the community branch banking office network along with area specific sales team focus.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 460,757 shares, or 16.11% on September 30, 2024.

As disclosed each year in the Annual Report to Shareholders, on September 30, 2024, the Company employed 80 people in full-time and part-time positions. Thirty four (34) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty one (31) 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)




September 30,

December 31,

September 30,

2024

2023

2023

ASSETS

Cash and due from banks on demand

$

7,087

$

4,274

$

5,601

Interest bearing deposits with banks

2,917

1,172

558

Total cash and cash equivalents

10,004

5,446

6,159

Securities available for sale

163,738

161,832

157,764

Restricted investments in bank stock

1,712

1,244

1,121

Loans

185,519

192,812

193,852

Allowance for credit losses

(1,085

)

(1,162

)

(1,162

)

Net loans

184,434

191,650

192,690

Premises and equipment

2,834

2,866

2,882

Accrued interest receivable

2,546

2,199

2,644

Investment in Life Insurance

18,948

18,534

18,390

Other assets

6,067

6,848

9,355

Total assets

$

390,283

$


390,619

$

391,005

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Deposits:

Non-interest bearing

$

157,196

$

156,767

$

162,418

Interest bearing

153,323

170,508

175,494

Total deposits

310,519

327,275

337,912

Short-term borrowings

39,697

25,317

24,100

Other liabilities

1,631

1,891

1,670

Total liabilities

351,847

354,483

363,682

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 2024 and 2023

7,200

7,200

7,200

Retained earnings

62,119

63,145

63,409

Accumulated other comprehensive loss

(18,339

)

(21,665

)

(30,742

)

Less treasury stock, at cost, 739,047 shares in 2024 and 2023

(12,544

)

(12,544

)

(12,544

)

Total shareholders' equity

38,436

36,136

27,323

Total liabilities and shareholders' equity

$

390,283

$

390,619

$

391,005

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

2024

2023

2024

2023

(unaudited)

(unaudited)

(unaudited)

(unaudited)

INTEREST INCOME:

Interest and fees on loans

$

2,046

$

2,044

$

6,159

$

6,153

Interest and dividends on securities:

Taxable

1,276

1,137

3,551

3,465

Exempt from federal income taxes

272

502

1,100

1,541

Other

58

46

158

112

Total interest income

3,652

3,729

10,968

11,271

INTEREST EXPENSE:

Interest on deposits

46

37

160

109

Interest on short-term borrowings

529

363

1,359

859

Total interest expense

575

400

1,519

968

NET INTEREST INCOME

3,077

3,329

9,449

10,303

CREDIT FOR CREDIT LOSSES

(35

)

(250

)

(74

)

(372

)

NET INTEREST INCOME AFTER

CREDIT FOR CREDIT LOSSES

3,112

3,579

9,523

10,675

OTHER OPERATING INCOME:

Asset management and trust

362

339

1,076

1,014

Service charges on deposit accounts

166

167

478

485

Net Security gains

-

-

3

-

Income from investment in life insurance

130

127

389

378

Other income

23

19

95

90

Total other operating income

681

652

2,041

1,967

OTHER OPERATING EXPENSES:

Salaries and employee benefits

2,051

1,933

6,110

5,754

Net occupancy

214

194

639

581

Furniture and equipment

140

129

418

395

Pennsylvania shares tax

84

74

244

220

Legal and professional

154

150

438

427

FDIC insurance

47

50

139

140

Other expenses

795

743

2,426

2,365

Total other operating expenses

3,485

3,273

10,414

9,882

INCOME BEFORE INCOME TAXES

308

958

1,150

2,760

Income tax (benefit)/expense

(17

)

77

(55

)

192

Net income

$

325

$

881

$

1,205

$

2,568

Average Shares Outstanding

2,860,953

2,860,953

2,860,953

2,860,953

Earnings Per Share

$

0.11

$

0.31

$

0.42

$

0.90

CONTACT:

Wendy Piper
+17245379923
wpiper@cbthebank.com

SOURCE: Commercial National Financial Corporation



View the original press release on accesswire.com

FAQ

What were CNAF's earnings per share for Q3 2024?

CNAF reported earnings of $0.11 per share for Q3 2024, compared to $0.31 per share in Q3 2023.

What percentage of CNAF's deposits were core deposits in Q3 2024?

85.4% of CNAF's total deposits were fully insured well diversified core deposits at the end of Q3 2024.

What are CNAF's current capital ratios as of September 30, 2024?

As of September 30, 2024, CNAF's tier one risk-based ratio was 24.55%, total risk-based 25.02%, leverage 13.82%, and common equity tier one 24.55%.

COMML NATL FINCL CORP PA

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