Click here to close now.

Welcome!

.NET Authors: Aria Blog, Pat Romanski, Elizabeth White, Hovhannes Avoyan, Sanjeev Sharma

News Feed Item

Commercial National Reports Strong 2012 Results

LATROBE, Pa., Nov. 5, 2012 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended September 30, 2012. The Company earned $1,074,000 (or $.38 per average share outstanding) in 2012 compared to $1,879,000 (or $.65 per average share outstanding) in 2011. The Company earned $6,089,000 (or $2.13 per average share outstanding) for the nine-month period ended September 30, 2012 and $4,726,000 (or $1.65 per average share outstanding) for the nine-month period ended September 30, 2011. The Company's annualized return on average assets and average equity were 1.16% and 7.70%, respectively, for the quarter ended September 30, 2012 compared to 1.92% and 15.36%, respectively, for the quarter ended September 30, 2011. The Company's annualized return on average assets and average equity were 2.14% and 14.74%, respectively, for the nine-month period ended September 30, 2012 compared to 1.69% and 13.22%, respectively, for the nine-month period ended September 30, 2011. During the second half of 2011 an expansion of high-yield municipal bond leverage materially influenced earnings for that time period. During the first quarter of 2012 that leverage position was extensively reduced inducing an earnings and equity capture of considerable magnitude which profoundly shaped individual quarterly and full year results for 2012. In the aftermath of this deleveraging, the Company's ongoing core earnings continue to exceed prevailing banking industry norms. Major contributors to the Company's high profitability include outstanding earning asset credit quality, strong net interest margin and exceptional tax efficiency.

President and Chief Executive Officer, Gregg E. Hunter noted, "Sequential third quarter 2012 earnings were impacted by non-recurring expense events. During the quarter, a $182,000 wire fraud charge stemming from a series of counterfeit non-U.S./foreign check deposits was recorded. Legal costs related to this matter amounted to an additional $5,000. Full recovery on this wire fraud recognition and all associated legal costs is being aggressively pursued by corporate legal counsel against the local parties responsible for this incident. The Company and its legal counsel consider the case for recovery to be strong even though such actions are always to some degree uncertain. Also during the third quarter, settlement was reached by corporate counsel with a claimant who had brought multiple legal actions against many banks in western Pennsylvania alleging non-compliance with federal disabilities access requirements for selected automated teller machine (ATM) locations. The Company's total expenditures related to the legal settlement of this matter were $35,000 including corporate attorney's fees."

Mr. Hunter added, "Loan approvals and fundings greatly improved during 2012's third quarter relative to the first six months of the year. Outstanding loan portfolio credit quality was evidenced by minimal delinquencies and no required loan loss provisioning thus far in 2012 along with a complete lack of any non-accrual or restructured loans at third quarter-end. In addition, no loan loss provisions have been needed since the fourth quarter of 2008. On September 30, 2012 the Company's relatively large $108.2 million book value securities portfolio had a 6.46% tax equivalent yield, a 4.4 year average life, a 3.9 year duration and was favorably characterized by $9,391,000 in net unrealized market value gains. Deposit growth was solid during the first nine months of 2012. It was also profitable with non-interest bearing demand deposits continuing to represent the Company's largest funding source. Non-core funding dependence remains immaterial. At third quarter-end, excess funds on deposit in the Company's interest bearing Federal Reserve account provided a substantial liquidity enhancing and market exposure moderating balance sheet cushion pending future deployment into high quality earning assets as opportunities arise. Tier one risk-based, total risk-based and leverage capital ratios for the Company were 25.10%, 25.94% and 13.76% respectively at third quarter-end. All of these critical capital ratios vastly surpass both present and proposed regulatory requirements. The Company's capital base and anticipated earnings remain well-supportive of the regular quarterly $0.26 per share common stock cash dividend."

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates ten 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 (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


(Unaudited)

(Dollars in thousands)













September


September






2012


2011










ASSETS






Cash and due from banks on demand


$                      6,729


$                      7,238


Interest bearing deposits with banks


56,320


324



Total cash and cash equivalents


63,049


7,562










Securities available for sale


117,540


177,772


Restricted investments in bank stock


2,884


3,720










Loans



170,332


187,391



Allowance for loan losses


(1,652)


(1,673)




Net loans


168,680


185,718










Premises and equipment


3,146


3,136


Investment in Life Insurance


16,387


15,836


Other assets


4,320


6,693











Total assets


$                  376,006


$                  400,437










LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:







Deposits:








Non-interest bearing


$                    99,738


$                    90,198




Interest bearing


216,305


205,376




Total deposits


316,043


295,574











Short-term borrowings


-


36,275



Long-term borrowings


-


10,000



Other liabilities


4,077


7,154




Total liabilities


320,120


349,003










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 2012 and 2011.


7,200


7,200



Retained earnings


55,032


49,930



Accumulated other comprehensive income


6,198


6,848



Less treasury stock, at cost,







739,047 shares in 2012 and 2011


(12,544)


(12,544)




Total shareholders' equity


55,886


51,434












Total liabilities and shareholders' equity

$                  376,006


$                  400,437










 

 

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)

















Three Months


Nine Months






Ended September 30


Ended September 30






2012


2011


2012


2011














INTEREST INCOME:











Interest and fees on loans


$               2,243


$               2,670


$               6,954


$               8,053



Interest and dividends on securities:












Taxable


534


1,068


2,269


2,878




Exempt from federal income taxes


849


1,018


2,695


2,656




Other


28


-


68


1



Total Interest income


3,654


4,756


11,986


13,588














INTEREST EXPENSE:











Interest on deposits


277


408


924


1,368



Interest on short-term borrowings


-


16


16


45



Interest on long-term borrowings


-


59


1


177



Total Interest expense


277


483


941


1,590














NET INTEREST INCOME


3,377


4,273


11,045


11,998


PROVISION FOR LOAN LOSSES


-


-


-


-














NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES











3,377


4,273


11,045


11,998














OTHER OPERATING INCOME:











Asset management and trust income


232


327


706


833



Service charges on deposit accounts


273


268


818


794



Net Securities gains


122


-


3,317


-



Income from investment in life insurance


125


121


366


365



Other income


45


43


198


186



Total other operating income


797


759


5,405


2,178














OTHER OPERATING EXPENSES











Salaries and employee benefits


1,567


1,524


4,782


4,625



Net occupancy expense


188


218


616


632



Furniture and equipment


81


92


266


305



Pennsylvania shares tax


125


124


377


377



Legal and professional


84


84


247


306



FDIC Insurance expense


48


8


144


178



Other expenses


949


766


2,361


2,179



Total other operating expenses


3,042


2,816


8,793


8,602














INCOME BEFORE INCOME TAXES


1,132


2,216


7,657


5,574


Income tax expense


58


337


1,568


848















Net income


$               1,074


$               1,879


$               6,089


$               4,726














Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953














Earnings Per Share


$                 0.38


$                 0.65


$                 2.13


$                 1.65














 

SOURCE Commercial National Financial Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - is now accepting submissions to demo smart cars on the Expo Floor. Smart car sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem.
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from ...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
The IoT market is projected to be $1.9 trillion tidal wave that’s bigger than the combined market for smartphones, tablets and PCs. While IoT is widely discussed, what not being talked about are the monetization opportunities that are created from ubiquitous connectivity and the ensuing avalanche of data. While we cannot foresee every service that the IoT will enable, we should future-proof operations by preparing to monetize them with extremely agile systems.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and other machines.
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
For years, we’ve relied too heavily on individual network functions or simplistic cloud controllers. However, they are no longer enough for today’s modern cloud data center. Businesses need a comprehensive platform architecture in order to deliver a complete networking suite for IoT environment based on OpenStack. In his session at @ThingsExpo, Dhiraj Sehgal from PLUMgrid will discuss what a holistic networking solution should really entail, and how to build a complete platform that is scalable, secure, agile and automated.