LATROBE, PA / ACCESS Newswire / April 18, 2025 / Commercial National Financial Corporation (OTCQX:CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2025. The Company earned $431,000 (or $0.15 per average share outstanding) in the first quarter 2025 compared to $527,000 (or $0.18 per average share outstanding) in the first quarter of 2024.
The Company's first quarter-end 2025 tax equivalent net interest margin was 3.53%. Effective overhead cost containment was primarily attributable to more efficient staffing for operational continuity. Fully insured well diversified core deposits comprised 87.42% of total deposits which very favorably compares to national banking industry metrics. Asset quality remained exceptionally strong across-the-board. Capital adequacy and strength greatly exceeded major banking industry benchmarks. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios at March 31, 2025 were 25.19%, 25.57%, 14.15% and 25.19% respectively. Tier one capital was $56,933,000 and total risk-based capital was $57,888,000 while book capital reflected a temporary after-tax accumulated other comprehensive loss stemming from net unrealized securities available-for-sale market value depreciation. As with many other insured depository institutions nationwide, the Company's securities portfolio has been adversely impacted by generationally elevated market interest rates and yields.
Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 460,757 shares, or 16.11% on March 31, 2025.
As disclosed each year in the Annual Report to Shareholders, on March 31, 2025, the Company employed 78 people in full-time and part-time positions. Thirty three (33) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, thirty (30) employees are full-time and there are three (3) part-time employees. The Company has had unionized employees since 1972. In November 2023, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 15, 2024. The labor agreement will expire in February 2029. 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 limits 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 seven community banking facilities in Hempfield Township, Latrobe, Ligonier, 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.cnbthebankonline.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, except per share data)
|
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March 31, |
|
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December 31, |
|
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March 31, |
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|||
|
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2025 |
|
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2024 |
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2024 |
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ASSETS |
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Cash and due from banks on demand |
|
$ |
1,552 |
|
|
$ |
3,743 |
|
|
$ |
2,766 |
|
Interest bearing deposits with banks |
|
|
4,254 |
|
|
|
1,322 |
|
|
|
1,830 |
|
Cash and Cash Equivalents |
|
|
5,806 |
|
|
|
5,065 |
|
|
|
4,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale |
|
|
152,374 |
|
|
|
156,076 |
|
|
|
157,498 |
|
Restricted investments in bank stock |
|
|
1,371 |
|
|
|
1,671 |
|
|
|
1,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
178,819 |
|
|
|
181,452 |
|
|
|
191,151 |
|
Allowance for credit losses |
|
|
(865 |
) |
|
|
(865 |
) |
|
|
(1,120 |
) |
Net loans |
|
|
177,954 |
|
|
|
180,587 |
|
|
|
190,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
2,997 |
|
|
|
2,790 |
|
|
|
2,906 |
|
Accrued Interest receivable |
|
|
2,487 |
|
|
|
2,202 |
|
|
|
2,521 |
|
Investment in life insurance |
|
|
19,216 |
|
|
|
19,083 |
|
|
|
18,672 |
|
Other Assets |
|
|
7,452 |
|
|
|
7,381 |
|
|
|
7,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
369,657 |
|
|
$ |
374,855 |
|
|
$ |
384,917 |
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|
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|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
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|
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|
|
|
|
|
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|
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Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
147,353 |
|
|
|
145,735 |
|
|
$ |
157,567 |
|
Interest bearing |
|
|
157,061 |
|
|
|
155,826 |
|
|
|
169,758 |
|
Total deposits |
|
|
304,414 |
|
|
|
301,561 |
|
|
|
327,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
29,662 |
|
|
|
38,665 |
|
|
|
21,633 |
|
Other liabilities |
|
|
1,789 |
|
|
|
1,854 |
|
|
|
1,783 |
|
Total liabilities |
|
|
335,865 |
|
|
|
342,080 |
|
|
|
350,741 |
|
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|
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|
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Shareholders' equity |
|
|
|
|
|
|
|
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Common stock, par value $2 per share; |
|
|
|
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|
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|
|
|
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10,000,000 shares authorized; 3,600,000 |
|
|
|
|
|
|
|
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|
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shares issued; 2,860,953 shares |
|
|
|
|
|
|
|
|
|
|
|
|
outstanding in 2025 and 2024 |
|
|
7,200 |
|
|
|
7,200 |
|
|
|
7,200 |
|
Retained earnings |
|
|
62,556 |
|
|
|
62,440 |
|
|
|
62,928 |
|
Accumulated other comprehensive income |
|
|
(23,420 |
) |
|
|
(24,321 |
) |
|
|
(23,408 |
) |
Treasury stock, at cost, 739,047 shares |
|
|
|
|
|
|
|
|
|
|
|
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in 2025 and 2024 |
|
|
(12,544 |
) |
|
|
(12,544 |
) |
|
|
(12,544 |
) |
Total shareholders' equity |
|
|
33,792 |
|
|
|
32,775 |
|
|
|
34,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
369,657 |
|
|
$ |
374,855 |
|
|
$ |
384,917 |
|
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
|
|
Three Months Ended |
|
|
Three Months Ended |
|
||
|
|
March 31, |
|
|
March 31, |
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|
|
2025 |
|
|
2024 |
|
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|
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|
|
|
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INTEREST INCOME |
|
|
|
|
|
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Interest and fees on loans |
|
$ |
2,027 |
|
|
$ |
2,058 |
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
Taxable |
|
|
1,086 |
|
|
|
1,105 |
|
Exempt from federal income taxes |
|
|
442 |
|
|
|
449 |
|
Other |
|
|
53 |
|
|
|
42 |
|
Total Interest income |
|
|
3,608 |
|
|
|
3,654 |
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
49 |
|
|
|
60 |
|
Interest on short-term borrowings |
|
|
408 |
|
|
|
369 |
|
Total Interest expense |
|
|
457 |
|
|
|
429 |
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
3,151 |
|
|
|
3,225 |
|
CREDIT FOR CREDIT LOSSES |
|
|
- |
|
|
|
(39 |
) |
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER |
|
|
|
|
|
|
|
|
CREDIT FOR CREDIT LOSSES |
|
|
3,151 |
|
|
|
3,264 |
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING INCOME |
|
|
|
|
|
|
|
|
Asset management and trust income |
|
|
379 |
|
|
|
352 |
|
Service charges on deposit accounts |
|
|
147 |
|
|
|
152 |
|
Net Security gains |
|
|
(14 |
) |
|
|
3 |
|
Income from investment in life insurance |
|
|
133 |
|
|
|
130 |
|
Other income |
|
|
43 |
|
|
|
54 |
|
Total other operating income |
|
|
688 |
|
|
|
691 |
|
|
|
|
|
|
|
|
|
|
OTHER OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
1,953 |
|
|
|
1,991 |
|
Net occupancy expense |
|
|
234 |
|
|
|
231 |
|
Furniture and equipment |
|
|
134 |
|
|
|
141 |
|
Pennsylvania shares tax |
|
|
80 |
|
|
|
77 |
|
Legal and professional |
|
|
133 |
|
|
|
131 |
|
FDIC Insurance |
|
|
44 |
|
|
|
46 |
|
Other expenses |
|
|
850 |
|
|
|
809 |
|
Total other operating expenses |
|
|
3,428 |
|
|
|
3,426 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
411 |
|
|
|
529 |
|
Income tax (benefit) expense |
|
|
(20 |
) |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
431 |
|
|
$ |
527 |
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding |
|
|
2,860,953 |
|
|
|
2,860,953 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share |
|
$ |
0.15 |
|
|
$ |
0.18 |
|
CONTACT:
Wendy Piper
wpiper@cbthebank.com
SOURCE: Commercial National Financial Corp. (Pennsylvania)
View the original press release on ACCESS Newswire