LATROBE, PA / ACCESSWIRE / May 3, 2021 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2021. The Company earned $1,068,000 (or $0.37 per average share outstanding) in the first quarter 2021 compared to $1,816,000 (or $0.63 per average share outstanding) in the first quarter of 2020. Tax free life insurance proceeds of $730,000 favorably influenced first quarter 2020 earnings results.

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 460,362 shares, or 16.09% on March 31, 2021.

As disclosed each year in the Annual Report to Shareholders, on March 31, 2021, the Company employed 79 people in full-time and part-time positions. Twenty-nine (29) full-time employees are represented by the United Auto Workers, Local 1799. 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 eight community banking facilities in Greensburg, 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)

		March 31,				December 31,				March 31,
		2021				2020				2020
ASSETS
Cash and due from banks on demand		$	4,128			$	3,744			$	6,015
Interest bearing deposits with banks			33,396				24,596				191
Cash and Cash Equivalents			37,524				28,340				6,206
Securities available for sale			128,615				133,317				145,670
Restricted investments in bank stock			148				148				1,211
Loans			243,842				241,080				239,194
Allowance for loan losses			(1,991	)			(1,991	)			(1,663	)
Net loans			241,851				239,089				237,531
Premises and equipment			2,732				2,805				2,834
Investment in life insurance			19,201				19,070				18,695
Other assets			3,868				2,662				4,372
Total assets		$	433,939			$	425,431			$	416,519
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing		$	160,439			$	148,398			$	133,910
Interest bearing			202,764				203,001				192,618
Total deposits			363,203				351,399				326,528
Short-term borrowings			-				-				25,375
Other liabilities			3,750				4,605				3,298
Total liabilities			366,953				356,004				355,201
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			63,616				63,292				61,626
Accumulated other comprehensive income			8,714				11,479				5,036
Treasury stock, at cost, 739,047 shares
in 2021 and 2020			(12,544	)			(12,544	)			(12,544	)
Total shareholders' equity			66,986				69,427				61,318
Total liabilities and shareholders' equity		$	433,939			$	425,431			$	416,519

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,
		2021				2020
INTEREST INCOME
Interest and fees on loans		$	2,515			$	2,606
Interest and dividends on securities:
Taxable			985				1,037
Exempt from federal income taxes			228				393
Other			7				24
Total Interest income			3,735				4,060
INTEREST EXPENSE
Interest on deposits			57				159
Interest on short term borrowings			-				120
Total Interest expense			57				279
NET INTEREST INCOME			3,678				3,781
PROVISION FOR LOAN LOSSES			-				-
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES			3,678				3,781
OTHER OPERATING INCOME
Asset management and trust income			358				343
Service charges on deposit accounts			166				160
Net Security losses			1				-
Income from investment in life insurance			123				111
Life Insurance proceeds			-				730
Other income			54				72
Total other operating income			702				1,416
OTHER OPERATING EXPENSES
Salaries and employee benefits			1,831				1,964
Net occupancy expense			222				212
Furniture and equipment			113				96
Pennsylvania shares tax			150				142
Legal and professional			101				101
FDIC Insurance			30				-
Other expenses			681				709
Total other operating expenses			3,128				3,224
INCOME BEFORE INCOME TAXES			1,252				1,973
Income tax expense			184				157
Net income		$	1,068			$	1,816
Average Shares Outstanding			2,860,953				2,860,953
Earnings Per Share		$	0.37			$	0.63

CONTACT:

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

SOURCE: Commercial National Financial Corporation

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