LATROBE, PA, Aug. 3 /PRNewswire-FirstCall/ -- Commercial National Financial Corporation (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the three-month period ended June 30, 2006. The Company earned $805,000 (or $.26 per average share outstanding) compared to $731,000 (or $.21 per average share outstanding) earned in the same period last year. The company earned $1.342 million (or $.42 per average share outstanding) for the six-month period ended June 30, 2006 and $1.772 million (or $.52 per average share outstanding) for the six- month period ended June 30, 2005. First half 2006 earnings reflect approximately $180,000 in non-recurring costs related to a negotiated stock repurchase. First half 2005 earnings benefited from a non-recurring $470,000 loan loss provision credit. Earnings-per-share in 2006 are based on 3,215,077 average shares outstanding compared to 3,413,426 average shares outstanding for the same period a year ago.
At quarter-end, the company reported record loan outstandings of $218.4 million compared to $204.4 million for the same period last year. Deposit products grew to $285.6 million at June 30, 2006 from $272.9 million at June 30, 2005. Earnings enhancement from the first quarter 2006 to the second quarter 2006 is mostly attributable to non-recurring first quarter stock repurchase costs, second quarter recognition of interest income on loans that had previously been in non-accrual status, and continued bank franchise loan and deposit growth throughout the first half of 2006.
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)
June June
2006 2005
ASSETS
Cash and due from banks on demand $10,023 $7,685
Interest bearing deposits with banks 30 64
Total cash and cash equivalents 10,053 7,749
Federal funds sold - 5,350
Securities available for sale 76,691 81,926
Restricted investments in bank stock 1,137 943
Loans 218,366 204,429
Allowance for loan losses (1,655) (1,647)
Net loans 216,711 202,782
Premises and equipment 4,090 4,524
Other assets 16,659 15,525
Total assets $325,341 $318,799
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $66,112 $64,440
Interest bearing 219,529 208,445
Total deposits 285,641 272,885
Other liabilities 1,572 1,656
Short-term borrowings 2,600 -
Total liabilities 289,813 274,541
Shareholders' equity:
Common stock, par value $2 per share;
10,000,000 shares authorized;
3,600,000 shares issued; 3,044,813
and 3,413,426 shares outstanding in
2006 and 2005, respectively 7,200 7,200
Retained earnings 39,471 39,182
Accumulated other comprehensive income (737) 1,454
Less treasury stock, at cost, 555,187
and 186,574 shares in 2006 and 2005 (10,406) (3,578)
Total shareholders' equity 35,528 44,258
Total liabilities and
shareholders' equity $325,341 $318,799
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Three Months Six Months
Ended June 30 Ended June 30
2006 2005 2006 2005
(unaudited)(unaudited)(unaudited)(unaudited)
INTEREST INCOME:
Interest and fees on loans $3,274 $2,787 $6,277 $5,497
Interest and dividends on
securities:
Taxable 946 1,170 1,828 2,436
Exempt from federal
income taxes 38 33 71 67
Other 119 37 291 41
Total Interest income 4,377 4,027 8,467 8,041
INTEREST EXPENSE:
Interest on deposits 1,355 1,071 2,554 2,087
Interest on short-term
borrowings 4 6 4 22
Total Interest expense 1,359 1,077 2,558 2,109
NET INTEREST INCOME 3,018 2,950 5,909 5,932
PROVISION FOR LOAN LOSSES 30 - 60 (470)
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 2,988 2,950 5,849 6,402
OTHER OPERATING INCOME:
Asset management and trust
income 237 229 447 436
Service charges on deposit
accounts 146 148 310 275
Other service charges and
fees 171 164 372 358
Income from investment in
life insurance 129 127 258 253
Other income 59 50 102 112
Total other operating
income 742 718 1,489 1,434
OTHER OPERATING EXPENSES
Salaries and employee
benefits 1,299 1,308 2,610 2,692
Net occupancy expense 167 191 363 368
Furniture and equipment 149 191 316 372
Pennsylvania shares tax 140 140 280 278
Legal and professional 128 146 429 273
Other expenses 771 719 1,532 1,444
Total other operating
expenses 2,654 2,695 5,530 5,427
INCOME BEFORE INCOME TAXES 1,076 973 1,808 2,409
Income tax expense 271 242 466 637
Net income $805 $731 $1,342 $1,772
Average Shares Outstanding 3,050,742 3,413,426 3,215,077 3,413,426
Earnings Per Share $0.26 $0.21 $0.42 $0.52
