LATROBE, Pa., Jan. 23 /PRNewswire-FirstCall/ -- Commercial National Financial Corporation (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the year ended December 31, 2005. The Company earned $3,377,000 (or $.99 per average share outstanding) in 2005 compared to $621,000 (or $.18 per average share outstanding) in 2004. Earnings for the fourth quarter of 2005 were $833,000 (or $.24 per average share outstanding) compared to $781,000 (or $.23 per average share outstanding) for the same period in 2004. Earnings-per-share in 2005 and 2004 are based on 3,413,426 and 3,422,881 average shares outstanding, respectively.
Year-to-date core earnings are $3,136,000 compared to 2004 core earnings of $2,604,000 - up by approximately 20.4%. To determine its core earnings, the Company excludes from earnings any net credit to its provision for loan losses, its realized securities gains/losses and any non-recurring items (see attached table).
Year Ended Year Ended
December 31, 2005 December 31, 2004
Net Income (GAAP) $3,377,000 $621,000
Adjustments:
FHLB Advance
Prepayment Penalty - $4,402,000
Net Credit - Loan Losses (365,000) (436,000)
Securities Gains - (1,195,000)
Executive Severance - 233,000
(365,000) 3,004,000
Tax Effect (34%) (124,000) 1,021,000
Core Earnings $3,136,000 $2,604,000
The core earnings for the fourth quarter 2005 of $833,000 reflects an improvement of 29.2% compared to core earnings of $645,000 for the fourth quarter 2004.
Three Months Ended Three Months Ended
December 31, 2005 December 31, 2004
Net Income (GAAP) $833,000 $781,000
Adjustments:
Profit Sharing
Accrual Reversal - (206,000)
- (206,000)
Tax Effect (34%) - (70,000)
Core Earnings $833,000 $645,000
Gregg E. Hunter, President and Chief Executive Officer commented, "Net income for 2005 rose due to the comprehensive business practices improvements which were instituted throughout both 2004 and 2005. Steady progress with concrete results were achieved in profitability, loan and deposit growth, liquidity, and cost control. This progress was only made possible through the extensive corporate enhancements which were implemented by the Board of Directors over the past two years."
In addition to Latrobe where it is headquartered, the company operates community banking facilities in Greensburg, Hempfield Township, 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 headquartered in Greensburg, Pennsylvania. Commercial Bank also serves its customer base from an Internet banking site (http://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.
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
December December
2005 2004
ASSETS
Cash and due from banks $12,760 $7,685
Interest bearing deposits with banks 121 101
12,881 7,786
Federal funds sold 16,950 -
Securities available for sale 66,117 99,455
Restricted investments in bank stock 1,013 1,806
Loans 207,039 192,255
Allowance for loan losses (1,636) (1,855)
Net loans 205,403 190,400
Premises and equipment 4,301 4,644
Other assets 15,716 16,281
Total assets $322,381 $320,372
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $69,025 $62,284
Interest bearing 207,984 203,534
Total deposits 277,009 265,818
Other liabilities 1,711 1,944
Short-term borrowings - 7,950
Total liabilities 278,720 275,712
Shareholders' equity
Common stock, par value $2 per share;
10,000,000 shares authorized;
3,600,000 shares issued;
3,413,426 shares outstanding 7,200 7,200
Retained earnings 39,422 38,946
Accumulated other comprehensive income 617 2,092
Less treasury stock, at cost,
186,574 shares (3,578) (3,578)
Total shareholders' equity 43,661 44,660
Total liabilities and
shareholders' equity $322,381 $320,372
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
Three Months Year
Ended December 31 Ended December 31
2005 2004 2005 2004
(unaudited)(unaudited)(unaudited)(unaudited)
INTEREST INCOME:
Interest and fees on loans $2,897 $2,721 $11,303 $10,809
Interest and dividends on
securities:
Taxable 952 1,406 4,441 6,914
Exempt from federal
income taxes 33 31 137 395
Other 172 2 303 124
Total Interest income 4,054 4,160 16,184 18,242
INTEREST EXPENSE:
Interest on deposits 1,154 969 4,360 3,662
Interest on short-term
borrowings - 65 22 161
Interest on long-term
borrowings - - - 2,128
Total Interest expense 1,154 1,034 4,382 5,951
NET INTEREST INCOME 2,900 3,126 11,802 12,291
PROVISION (CREDIT) FOR LOAN
LOSSES 90 - (365) (436)
NET INTEREST INCOME AFTER
PROVISION (CREDIT) FOR LOAN
LOSSES 2,810 3,126 12,167 12,727
OTHER OPERATING INCOME:
Asset management and trust
income 204 184 829 876
Service charges on deposit
accounts 161 105 604 644
Other service charges and fees 183 215 701 726
Net security gains - - - 1,195
Commissions and fees from
insurance sales - - - 342
Income from investment in
life insurance 148 145 525 529
Other income 140 43 300 279
Total other operating income 836 692 2,959 4,591
OTHER OPERATING EXPENSES
Salaries and employee benefits 1,238 1,131 5,196 6,003
Executive severance - - - 233
Net occupancy 184 143 722 702
Furniture and equipment 186 207 742 809
Pennsylvania shares tax 141 146 559 546
FHLB Advance prepayment penalty - - - 4,402
Other expenses 773 997 3,313 4,211
Total other operating expenses 2,522 2,624 10,532 16,906
INCOME BEFORE INCOME TAXES 1,124 1,194 4,594 412
Income tax expense/(benefit) 291 413 1,217 (209)
Net income $833 $781 $3,377 $621
Average Shares Outstanding 3,413,426 3,413,426 3,413,426 3,422,881
Net Income Per Share $0.24 $0.23 $0.99 $0.18
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