Commercial National Reports September 30, 2021 Earnings

LATROBE, PA / ACCESSWIRE / October 29, 2021 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2021. The Company earned $909,000 (or $0.32 per average share outstanding) in the third quarter 2021 compared to $67,000 (or $0.02 per average share outstanding) loss in the third quarter of 2020. The Company earned $2,978,000 (or $1.04 per average share outstanding) for the nine-month period ended September 30, 2021 and $3,201,000 (or $1.12 per average share outstanding) for the nine-month period ended September 30, 2020. Third quarter 2020 results included a $1,700,000 loan loss reserve build.

The Company's strong capital position in conjunction with recent core earnings results currently remain supportive of the regular $0.26 quarterly common stock cash dividend payments to shareholders. Providing an attractive and reliable cash dividend income stream to all our shareholders through the safe and sound operation of the subsidiary bank is a long-standing top priority for the Company.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 488,512 shares, or 17.08% on September 30, 2021.

As disclosed each year in the Annual Report to Shareholders, on September 30, 2021, the Company employed 77 people in full-time and part-time positions. Thirty (30) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, twenty nine (29) employees are full-time and there is one (1) part-time employee. The Company has had unionized employees since 1972. In October 2018, the agreement between the Company and the bargaining unit was negotiated and subsequently ratified by the bargaining unit with an effective date of February 16, 2019. The labor agreement will expire in February 2024. 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 may limit 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.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, except per share data)
				September 30,		December 31,		September 30,
				2021		2020		2020
ASSETS
Cash and due from banks on demand				$ 6,465		$ 3,744		$ 7,214
Interest bearing deposits with banks				69,587		24,596		50
	Total cash and cash equivalents			76,052		28,340		7,264
Securities available for sale				126,946		133,317		140,865
Restricted investments in bank stock				145		148		422
Loans				223,015		241,080		254,034
	Allowance for loan losses			(1,991)		(1,991)		(3,769)
		Net loans		221,024		239,089		250,265
Premises and equipment				2,624		2,805		2,887
Investment in Life Insurance				19,463		19,070		18,944
Other assets				3,030		2,662		3,618
	Total assets			$ 449,284		$ 425,431		$ 424,265
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
	Deposits:
		Non-interest bearing		$ 168,461		$ 148,398		$ 156,343
		Interest bearing		211,562		203,001		191,231
		Total deposits		380,023		351,399		347,574
	Short-term borrowings			-		-		5,166
	Other liabilities			3,569		4,605		3,869
		Total liabilities		383,592		356,004		356,609
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 2021 and 2020
				7,200		7,200		7,200
	Retained earnings			61,178		63,292		61,524
	Accumulated other comprehensive income			9,858		11,479		11,476
	Less treasury stock, at cost, 739,047 shares in 2021 and 2020			(12,544)		(12,544)		(12,544)
		Total shareholders' equity		65,692		69,427		67,656
		Total liabilities and shareholders' equity		$ 449,284		$ 425,431		$ 424,265

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
				Three Months				Nine Months
				Ended September 30				Ended September 30
				2021		2020		2021		2020
				(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME:
	Interest and fees on loans			$ 2,390		$ 2,719		$ 7,339		$ 8,079
	Interest and dividends on securities:
		Taxable		975		986		2,941		3,051
		Exempt from federal income taxes		200		309		645		1,049
	Other			26		5		46		39
	Total interest income			3,591		4,019		10,971		12,218
INTEREST EXPENSE:
	Interest on deposits			57		67		172		340
	Interest on short-term borrowings			-		6		-		145
	Total interest expense			57		73		172		485
NET INTEREST INCOME				3,534		3,946		10,799		11,733
PROVISION FOR LOAN LOSSES				-		1,700		-		2,100
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES				3,534		2,246		10,799		9,633
OTHER OPERATING INCOME:
	Asset management and trust			388		338		1,126		1,016
	Service charges on deposit accounts			178		166		516		469
	Net Security gains/(losses)			(11)		(2)		35		503
	Gain on sale of OREO			-		-		-		-
	Income from investment in life insurance			123		117		368		345
	Life insurance proceeds			-		-		-		730
	Other income			22		33		113		133
	Total other operating income			700		652		2,158		3,196
OTHER OPERATING EXPENSES:
	Salaries and employee benefits			1,848		1,798		5,501		5,626
	Net occupancy			161		193		583		594
	Furniture and equipment			114		110		359		318
	Pennsylvania shares tax			165		142		479		426
	Legal and professional			97		123		307		333
	FDIC insurance			27		23		88		35
	Other expenses			757		708		2,142		2,008
	Total other operating expenses			3,169		3,097		9,459		9,340
INCOME (LOSS) BEFORE INCOME TAXES				1,065		(199)		3,498		3,489
Income tax (benefit) expense				156		(132)		520		288
	Net income (loss)			$ 909		$ (67)		$ 2,978		$ 3,201
Average Shares Outstanding				2,860,953		2,860,953		2,860,953		2,860,953
Earnings (Loss) Per Share				$ 0.32		$ (0.02)		$ 1.04		$ 1.12

Contact Information:

Wendy S. Piper
Senior Vice President
Secretary/Treasurer
wpiper@cbthebank.com
724-537-9923

SOURCE: Commercial National Financial Corporation

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