Commercial National Reports Year-End 2018 Earnings

LATROBE, PA / ACCESSWIRE / January 24, 2019 / Commercial National Financial Corporation (OTCQX: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended December 31, 2018. The Company earned $1,143,000 (or $0.40 per average share outstanding) in the fourth quarter 2018 compared to $3,548,000 (or $1.24 per average share outstanding) in the fourth quarter 2017. The Company earned $4,345,000 (or $1.52 per average share outstanding) for the twelve-month period ended December 31, 2018 and $6,866,000 (or $2.40 per average share outstanding) for the twelve-month period ended December 31, 2017. Fourth quarter and twelve-month earnings in 2017 included a $2,518,000 earnings and capital benefit stemming from the Company's bond portfolio investment activities.

The Company's annualized return on average assets for 2018 was 1.08%. Tax equivalent net interest margin at 4.10% was reflective of the Company's stable low-cost core deposit base. Total loan portfolio outstandings increased by $18.1 million, or 8.64%, during 2018. Asset quality metrics continued to be outstanding with no needed loan loss provisioning throughout the entire year. The effective tax rate for 2018 was only 7.55%. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for year-end 2018 were 21.79%, 22.31%, 13.75% and 21.79% respectively. Investment portfolio net unrealized market value gains further bolstered book capital which sharply contrasted with the accumulated other comprehensive losses experienced by most other peer banks. All of the aforementioned financial diagnostics favorably compare to prevailing banking industry norms and are reflective of Commercial National Financial Corporation's admirable safety and soundness over an extended number of years.

The Company's underlying core earnings in conjunction with its solid capital base together provide ample capacity to maintain the regular $0.26 per share quarterly common stock cash dividend payments to shareholders. Providing an attractive and reliable cash dividend income stream to all our shareholders in the most equitable manner possible through the prudent operation of the subsidiary bank remains a long-standing top priority for the Company.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 704,325 shares, or 24.62% on December 31, 2018.

As disclosed each year in the Annual Report to Shareholders, on December 31, 2018, the Company employed 98 people in full-time and part-time positions. Forty-five (45) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, Thirty-five (35) employees are full-time and ten (10) employees are part-time. 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 nine community banking facilities in Greensburg, Hempfield Township, Latrobe, Ligonier, North Huntingdon, 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.

Contact Information:

Wendy S. Piper
First Senior Vice President
Secretary/Treasurer
[email protected]
724-537-9923

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands)

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

SOURCE: Commercial National Financial Corporation

You May Also Be Interested In

• Meta bull case increasingly playing out, Mizuho says
• Progress Software completes $400M acquisition of Domo's data platform
• AutoZone beats profit view but misses on revenue