Commercial National Reports 55.2% Third Quarter Earnings Increase

Lower interest expense supported earnings growth, while accumulated securities valuation losses weighed on book capital.

Rhea-AI Summary

Commercial National Financial (CNAF) reported third-quarter net income of $692,000, a 55.2% increase from the same period in 2025.

Earnings per share rose to $0.24 from $0.16. Nine-month net income increased 27.5% to $1.693 million, or $0.60 per share versus $0.46. Net interest income increased in both periods as interest expense declined. The third-quarter-end tax-equivalent net interest margin improved to 4.00%.

September-end loans declined from December, while short-term borrowings increased and shareholders’ equity fell alongside a larger accumulated other comprehensive loss. Federal Home Loan Bank advances funded purchases of GNMA mortgage-backed securities in late September. The company repurchased 52,550 shares at an average $8.42 since August 19, 2025, through September 30, 2026; its August 2026 authorization permits repurchases of up to 114,680 shares.

11 points · 0 major

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2 major · 8 points

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Positive

• Moderate pointThird-quarter net income increased 55.2% to $692,000; earnings per share rose to $0.24 from $0.16.
• Moderate pointNet interest income rose to $3.379 million quarterly and $9.961 million year-to-date, versus $3.177 million and $9.527 million.
• Moderate pointThird-quarter-end tax-equivalent net interest margin improved to 4.00%.
• Minor pointNine-month net income increased 27.5% to $1.693 million; earnings per share rose to $0.60 from $0.46.
• Minor pointInterest expense declined to $150,000 quarterly and $588,000 year-to-date, versus $374,000 and $1.216 million.

6 minor points

• Minor pointCredit-loss provision reversals totaled $54,000 quarterly and $74,000 year-to-date, versus none in either prior-year period.
• Minor pointFully insured, diversified core deposits represented 83.50% of total deposits.
• Minor pointQuarterly operating expenses declined to $3.422 million from $3.453 million a year earlier.
• Minor pointSeptember-end capital ratios included 26.67% common equity tier one, 26.99% total risk-based and 14.87% leverage.
• Minor pointShare repurchases totaled 52,550 shares at an average $8.42 from August 19, 2025, through September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.August 2026 repurchase authorization permits up to 114,680 shares, representing 4% of then-outstanding shares.

Negative

• Major pointSeptember-end shareholders’ equity fell to $28.696 million from $37.751 million at December 31, 2025.
• Major pointSeptember-end short-term borrowings increased to $57.039 million from $17.536 million at December 31, 2025.
• Moderate pointSeptember-end loans declined to $160.136 million from $169.951 million at December 31, 2025.
• Minor pointAccumulated other comprehensive loss widened to $29.162 million from $19.867 million at December 31, 2025.
• Minor pointTotal interest income declined to $3.529 million quarterly and $10.549 million year-to-date, versus $3.551 million and $10.743 million.

3 minor points

• Minor pointOther operating income declined to $681,000 quarterly and $2.074 million year-to-date, versus $702,000 and $2.084 million.
• Minor pointNine-month operating expenses increased to $10.459 million from $10.340 million a year earlier.
• Minor pointBargaining-unit status limits strategic options relative to non-unionized banks, the company said it has been advised.

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LATROBE, PA / ACCESS Newswire / October 22, 2026 / Commercial National Financial Corporation (OTCQX:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2026. The Company earned $692,000 (or $0.24 per average share outstanding) in the third quarter 2026 compared to $446,000 (or $0.16 per average share outstanding) in the third quarter of 2025. The Company earned $1,693,000 (or $0.60 per average share outstanding) for the nine-month period ended September 30, 2026 and $1,328,000 (or $0.46 per average share outstanding) for the nine-month period ended September 30, 2025.

The Company's third-quarter earnings increased 55.2% while nine-month earnings increased 27.5%. Third quarter-end 2026 tax equivalent net interest margin improved to 4.00%. Fully insured well diversified core deposits comprised 83.50% of total deposits which favorably compares to national banking industry metrics. Federal Home Loan Bank member advances were utilized during late September in facilitating the acquisition of amortizing GNMA mortgage backed pass-through securities to capitalize on the opportunity presented by a multi-decade spike in market yields. Asset quality remained attractive. 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 September 30, 2026 were 26.67%, 26.99%, 14.87% and 26.67% respectively. Tier one capital was $57,108,000 and total risk-based capital was $57,792,000 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 remains impacted by generationally elevated trade, fiscal and monetary macro policy volatility.

On August 20, 2026 the Company announced a stock repurchase program authorizing the repurchase of up to 114,680 shares of its common stock, representing 4% of the Company's currently outstanding shares. The repurchase program reauthorizes the program adopted on August 19, 2025, which lapsed after its one-year effective period following the repurchase of 28,368 shares of common stock under the program. Since August 19, 2025, the Company has repurchased 52,550 shares of its common stock through September 30, 2026, at an average price of $8.42 per share. The Company intends to conduct the repurchases on the open market, including by means of a trading plan adopted under SEC Rule 10b5-1, subject to market conditions and other factors. There is no guarantee as to the number of shares that the Company may ultimately repurchase. The Company may suspend or discontinue the program at any time.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 504,607 shares, or 17.97% on September 30, 2026.

As disclosed each year in the Annual Report to Shareholders, on September 30, 2026, the Company employed 76 people in full-time and part-time positions. Thirty-one (31) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, twenty-eight (28) 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.

Contract Information:

Wendy Piper
Commercial National Financial Corporation
724.539.3501
wpiper@cbthebank.com

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except per share data)

		September 30,				December 31,				September 30,
		2026				2025				2025
ASSETS
Cash and due from banks on demand		$	6,069			$	3,859			$	6,345
Interest bearing deposits with banks			1,715				1,861				3,507
Cash and Cash Equivalents			7,784				5,720				9,852
Securities available for sale			189,198				155,781				155,422
Restricted investments in bank stock			2,392				903				1,367
Loans			160,136				169,951				174,166
Allowance for credit losses			(684	)			(804	)			(865	)
Net loans			159,452				169,147				173,301
Premises and equipment			2,606				2,775				2,824
Accrued interest receivable			2,516				2,226				2,543
Investment in life insurance			20,021				19,619				19,482
Other assets			9,814				6,216				7,491
Total assets		$	393,783			$	362,387			$	372,282
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Non-interest bearing		$	157,597			$	150,531			$	156,054
Interest bearing			148,057				154,975				149,257
Total deposits			305,654				305,506				305,311
Short-term borrowings			57,039				17,536				28,746
Other liabilities			2,394				1,594				1,627
Total liabilities			365,087				324,636				335,684
Shareholders' equity
Common stock, par value $2 per share; 10,000,000
shares authorized; 3,600,000 shared issued;
2,808,403, 2,848,446, and 2,858,988 shares outstanding
in September 2026, December 2025,
and September 2025, respectively.			7,200				7,200				7,200
Retained earnings			63,645				63,060				62,823
Accumulated other comprehensive income			(29,162	)			(19,867	)			(20,865	)
Treasury stock, at cost, totaled 791,597, 751,554
and 741,012 shares at September 2026, December 2025
and September 2025, respectively.			(12,987	)			(12,642	)			(12,560	)
Total shareholders' equity			28,696				37,751				36,598
Total liabilities and shareholders' equity		$	393,783			$	362,387			$	372,282

COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
INTEREST INCOME
Interest and fees on loans		$	1,965			$	2,007			$	5,927			$	6,073
Interest and dividends on securities:
Taxable			1,130				1,074				3,200				3,199
Exempt from federal income taxes			408				424				1,323				1,324
Other			26				46				99				147
Total Interest income			3,529				3,551				10,549				10,743
INTEREST EXPENSE
Interest on deposits			38				40				113				130
Interest on short-term borrowings			112				334				475				1,086
Total Interest expense			150				374				588				1,216
NET INTEREST INCOME			3,379				3,177				9,961				9,527
Provision for credit losses			(54	)			-				(74	)			-
Net Interest Income after
Provision for Credit Losses			3,433				3,177				10,035				9,527
OTHER OPERATING INCOME
Asset management and trust income			382				385				1,151				1,146
Service charges on deposit accounts			158				165				453				471
Net Security losses			(9	)			(1	)			(9	)			(15	)
Income from investment in life insurance			134				133				402				399
Other income			16				20				77				83
Total other operating income			681				702				2,074				2,084
OTHER OPERATING EXPENSES
Salaries and employee benefits			2,039				2,053				6,070				5,993
Net occupancy expense			197				195				657				630
Furniture and equipment			132				146				453				454
Pennsylvania shares tax			85				71				250				223
Legal and professional			176				144				536				443
FDIC Insurance			41				40				125				128
Other expenses			752				804				2,368				2,469
Total other operating expenses			3,422				3,453				10,459				10,340
INCOME BEFORE INCOME TAXES			692				426				1,650				1,271
Income tax benefit			-				(20	)			(43	)			(57	)
Net income		$	692			$	446			$	1,693			$	1,328
Average Shares Outstanding			2,831,903				2,860,544				2,839,209				2,860,815
Earnings Per Share		$	0.24			$	0.16			$	0.60			$	0.46

SOURCE: Commercial National Financial Corp. (Pennsylvania)

View the original press release on ACCESS Newswire

FAQ

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What were Commercial National Financial’s third-quarter 2026 earnings?

Commercial National Financial earned $692,000, or $0.24 per share, in the quarter ended September 30, 2026. That compares with $446,000, or $0.16 per share, in the third quarter of 2025, representing a 55.2% increase in net income.

How does Commercial National Financial plan to carry out its share repurchases?

Commercial National Financial intends to repurchase shares on the open market, including through a trading plan adopted under SEC Rule 10b5-1, subject to market conditions and other factors. There is no guarantee how many shares will ultimately be repurchased.

When does Commercial National Financial’s union labor agreement expire?

The labor agreement expires in February 2029. It was negotiated and ratified in November 2023 and became effective February 15, 2024. At September 30, 2026, 31 employees were represented by United Auto Workers Local 1799, including 28 full-time and three part-time employees.