LATROBE, Pa., Feb. 5 /PRNewswire-FirstCall/ -- Commercial National Financial Corporation (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the year ended December 31, 2008. The Company earned $4,024,000 (or $1.36 per average share outstanding) compared to $3,065,000 (or $1.01 per average share outstanding) in 2007. Earnings for the fourth quarter of 2008 were $1,222,000 or ($.42 per average share outstanding) compared to $892,000 (or $.29 per average share outstanding) for the same period in 2007.
Gregg E. Hunter, President and Chief Executive Officer noted, "Commercial National Financial Corporation earned $4,024,000 during 2008. This achievement represented an earnings increase of $959,000, or 31%, over the $3,065,000 that the Corporation earned during 2007. Earnings progressively strengthened throughout 2008 with first, second, third and fourth quarter earnings rising 10%, 34%, 43% and 37% respectively in comparison to the comparable periods in 2007. Earnings per share in 2008 reached $1.36 which was a $0.35, or 35%, increase over the $1.01 earnings per share of 2007. As a direct result of the aforementioned successes, the cash dividend payment rate to the Corporation's shareholders was raised by 10% at mid-year 2008. Maintaining continually attractive cash dividend payments to our shareholders is a top priority for your Corporation. The improved financial performance of 2008 resulted from the actions which were taken in anticipation of, and in response to, extreme economic, interest rate and market yield events that were historically unprecedented."
In addition to Latrobe, Pennsylvania 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 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 (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 INCOME (Unaudited) (dollars in thousands, except per share data) Three Months Year Ended December 31 Ended December 31 2008 2007 2008 2007 ---- ---- ---- ---- INTEREST INCOME: Interest and fees on loans $3,216 $3,461 $13,083 $13,724 Interest and dividends on securities: Taxable 1,757 1,637 6,349 5,050 Exempt from federal income taxes 27 33 127 136 Other 2 6 28 132 --- --- --- --- Total Interest income 5,002 5,137 19,587 19,042 INTEREST EXPENSE: Interest on deposits 918 1,772 4,669 6,707 Interest on short-term borrowings 74 148 460 313 Interest on long-term borrowings 254 232 921 259 --- --- --- --- Total Interest expense 1,246 2,152 6,050 7,279 ----- ----- ----- ----- NET INTEREST INCOME 3,756 2,985 13,537 11,763 PROVISION FOR LOAN LOSSES 15 - 15 90 --- --- --- --- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 3,741 2,985 13,522 11,673 OTHER OPERATING INCOME: Asset management and trust income 241 250 1,011 1,029 Service charges on deposit accounts 159 176 631 662 Other service charges and fees 189 183 738 697 Net security gains (76) - (76) - Income from investment in life insurance 167 168 601 590 Other income 53 35 190 149 --- --- --- --- Total other operating income 733 812 3,095 3,127 --- --- ----- ----- OTHER OPERATING EXPENSES Salaries and employee benefits 1,474 1,294 5,745 5,324 Net occupancy 179 177 741 713 Furniture and equipment 148 138 551 522 Legal and professional fees 70 116 427 453 Pennsylvania shares tax 132 134 530 542 Other expenses 766 740 3,012 3,109 --- --- ----- ----- Total other operating expenses 2,769 2,599 11,006 10,663 ----- ----- ------ ------ INCOME BEFORE INCOME TAXES 1,705 1,198 5,611 4,137 Income tax expense 483 306 1,587 1,072 --- --- ----- ----- Net income $1,222 $892 $4,024 $3,065 ====== ==== ====== ====== Average Shares Outstanding 2,885,515 3,028,813 2,949,810 3,038,761 Net Income Per Share $0.42 $0.29 $1.36 $1.01 COMMERCIAL NATIONAL FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Dollars in thousands, except per share data) December 31 December 31 2008 2007 ---- ---- ASSETS Cash and due from banks $7,111 $9,836 Interest bearing deposits with banks 21 93 --- --- 7,132 9,929 Securities available for sale 114,771 109,960 Restricted investments in bank stock 3,967 2,375 Loans 215,933 227,005 Allowance for loan losses (1,821) (1,869) ------ ------ Net loans 214,112 225,136 Premises and equipment 3,549 3,728 Other assets 16,968 16,514 ------ ------ Total assets $360,499 $367,642 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits: Non-interest bearing $67,067 $64,914 Interest bearing 190,020 228,605 ------- ------- Total deposits 257,087 293,519 Other liabilities 3,169 2,487 Short-term borrowings 31,175 13,175 Long-term borrowings 30,000 20,000 ------ ------ Total liabilities 321,431 329,181 ------- ------- Shareholders' equity Common stock, par value $2 per share; 10,000,000 shares authorized; 3,600,000 shares issued; 2,880,953 and 3,028,813 shares outstanding in 2008 and 2007, respectively 7,200 7,200 Retained earnings 41,616 40,505 Accumulated other comprehensive income 2,490 1,437 Less treasury stock, at cost, 719,047 and 571,187 shares in 2008 and 2007 (12,238) (10,681) ------- ------- Total shareholders' equity 39,068 38,461 ------ ------ Total liabilities and shareholders' equity $360,499 $367,642 ======== ========
