Commercial National Reports December 31, 2024 Results
Rhea-AI Summary
Commercial National Financial (OTCQX:CNAF) reported fourth quarter 2024 earnings of $636,000 ($0.22 per share), up from $479,000 ($0.17 per share) in Q4 2023. However, full-year 2024 earnings decreased to $1,841,000 ($0.64 per share) from $3,047,000 ($1.07 per share) in 2023.
The company's 2024 performance showed a 0.48% return on average assets and 5.40% return on equity, with a tax-equivalent net interest margin of 3.44%. Capital ratios remained strong, with tier one risk-based at 24.90%, total risk-based at 25.28%, and leverage at 14.01%. Fully insured core deposits comprised 87.36% of total deposits.
The company's securities portfolio was impacted by high market interest rates, though monetary policy easing began in mid-September 2024. Dividend declarations in Q4 2024 became dependent on current earnings expectations due to the full utilization of undistributed earnings from 2022 and 2023.
Positive
- Q4 2024 earnings increased 32.8% YoY to $636,000
- Strong capital ratios well above industry benchmarks (24.90% tier one risk-based)
- High proportion of insured core deposits at 87.36%
- Exceptional asset quality maintained
Negative
- Full-year 2024 earnings declined 39.6% to $1,841,000 from $3,047,000 in 2023
- Low return on average assets at 0.48%
- Securities portfolio adversely impacted by high interest rates
- Reduced dividend capacity due to full utilization of undistributed earnings
News Market Reaction
On the day this news was published, CNAF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
LATROBE, PA / ACCESS Newswire / January 30, 2025 / Commercial National Financial Corporation (OTCQX:CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended December 31, 2024. The Company earned
The Company's full-year 2024 return on average assets was
At year-end 2023 there was strong market expectation for timely and extensive Federal Reserve Bank monetary policy easing beginning by first quarter 2024 following the Federal Reserve's unprecedentedly rapid and extensive 525 basis points of interest rate hikes between March 2022 and July 2023. However, such easing, which would materially benefit the Company's overall financial condition and performance by reducing marginal funding cost along with the deposit footing impeding attractiveness of non-deposit money market alternatives, only belatedly initiated in mid-September 2024. Undistributed earnings from 2022 and 2023 were at last fully utilized during 2024's third quarter to provide limited carryover capacity in augmenting 2024 dividend declarations. As a result, beginning in 2024's fourth quarter, ongoing dividend declarations were solely reliant on prevailing earnings expectations which continue to be influenced by a recently receding multiple decade high in Federal Reserve Bank driven marginal funding cost. Commercial National Financial Corporation's traditional practice of optimizing dividends within the limitations imposed by banking regulation and earnings circumstance has not changed. That practice continues to be supported by exceptional asset quality and exceedingly strong capital which, together, provide a firm basis for future earnings and dividends improvement as conditions warrant.
Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 460,757 shares, or
As disclosed each year in the Annual Report to Shareholders, on December 31, 2024, 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)
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| December 31 |
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| December 31 |
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| 2024 |
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| 2023 |
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ASSETS |
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Cash and due from banks on demand |
| $ | 3,743 |
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| $ | 4,274 |
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Interest bearing deposits with banks |
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| 1,322 |
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| 1,172 |
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Total cash and cash equivalents |
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| 5,065 |
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| 5,446 |
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Securities available for sale |
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| 156,076 |
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| 161,832 |
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Restricted investments in bank stock |
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| 1,671 |
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| 1,244 |
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Loans |
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| 181,452 |
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| 192,812 |
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Allowance for loan losses |
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| (865 | ) |
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| (1,162 | ) |
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Net loans |
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| 180,587 |
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| 191,650 |
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Premises and equipment |
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| 2,790 |
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| 2,866 |
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Accrued Interest receivable |
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| 2,202 |
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| 2,199 |
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Investment in Life Insurance |
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| 19,083 |
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| 18,534 |
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Other assets |
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| 7,381 |
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| 6,848 |
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Total assets |
| $ | 374,855 |
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| $ | 390,619 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Liabilities: |
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Deposits: |
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Non-interest bearing |
| $ | 145,735 |
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| $ | 156,767 |
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Interest bearing |
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| 155,826 |
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| 170,508 |
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Total deposits |
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| 301,561 |
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| 327,275 |
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Short -Term borrowings |
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| 38,665 |
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| 25,317 |
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Other liabilities |
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| 1,854 |
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| 1,891 |
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Total liabilities |
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| 342,080 |
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| 354,483 |
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Shareholders' equity: |
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Common stock, par value |
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10,000,000 shares authorized; 3,600,000 shares |
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issued; 2,860,953 shares |
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outstanding in 2024 and 2023. |
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| 7,200 |
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| 7,200 |
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Retained earnings |
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| 62,439 |
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| 63,145 |
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Accumulated other comprehensive income |
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| (24,320 | ) |
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| (21,665 | ) |
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Less treasury stock, at cost, |
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739,047 shares in 2024 and 2023 |
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| (12,544 | ) |
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| (12,544 | ) |
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Total shareholders' equity |
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| 32,775 |
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| 36,136 |
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Total liabilities and shareholders' equity |
| $ | 374,855 |
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| $ | 390,619 |
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COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
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| Three Months |
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| Twelve Months |
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| Ended December 31 |
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| Ended December 31 |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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INTEREST INCOME: |
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Interest and fees on loans |
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| 2,055 |
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| 2,062 |
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| $ | 8,214 |
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| $ | 8,215 |
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Interest and dividends on securities: |
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Taxable |
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| 1,000 |
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| 1,136 |
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| 4,404 |
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| 4,601 |
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Exempt from federal income taxes |
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| 547 |
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| 482 |
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| 1,794 |
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| 2,023 |
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Other |
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| 57 |
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| 50 |
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| 215 |
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| 162 |
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Total Interest income |
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| 3,659 |
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| 3,730 |
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| 14,627 |
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| 15,001 |
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INTEREST EXPENSE: |
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Interest on deposits |
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| 48 |
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| 79 |
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| 208 |
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| 188 |
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Interest on short-term borrowings |
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| 477 |
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| 414 |
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| 1,836 |
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| 1,273 |
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Total Interest expense |
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| 525 |
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| 493 |
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| 2,044 |
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| 1,461 |
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NET INTEREST INCOME |
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| 3,134 |
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| 3,237 |
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| 12,583 |
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| 13,540 |
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PROVISION(CREDIT) FOR LOAN LOSSES |
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| (219 | ) |
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| - |
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| (293 | ) |
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| (372 | ) |
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NET INTEREST INCOME AFTER |
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PROVISION(CREDIT) FOR LOAN LOSSES |
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| 3,353 |
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| 3,237 |
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| 12,876 |
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| 13,912 |
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OTHER OPERATING INCOME: |
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Asset management and trust income |
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| 375 |
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| 332 |
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| 1,451 |
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| 1,346 |
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Service charges on deposit accounts |
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| 166 |
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| 167 |
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| 644 |
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| 652 |
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Net Security gains(losses) |
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| - |
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| (6 | ) |
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| 3 |
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| (6 | ) |
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Income from investment in life insurance |
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| 135 |
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| 136 |
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| 524 |
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| 514 |
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Other income |
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| 25 |
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| 20 |
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| 120 |
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| 110 |
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Total other operating income |
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| 701 |
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| 649 |
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| 2,742 |
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| 2,616 |
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OTHER OPERATING EXPENSES |
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Salaries and employee benefits |
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| 2,001 |
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| 1,993 |
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| 8,111 |
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| 7,747 |
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Net occupancy expense |
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| 200 |
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| 185 |
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| 839 |
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| 766 |
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Furniture and equipment |
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| 134 |
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| 139 |
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| 552 |
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| 534 |
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Pennsylvania shares tax |
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| 84 |
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| 73 |
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| 328 |
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| 293 |
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Legal and professional |
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| 112 |
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| 156 |
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| 550 |
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| 583 |
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FDIC Insurance expense |
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| 46 |
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| 46 |
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| 185 |
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| 186 |
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Other expenses |
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| 835 |
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| 837 |
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| 3,261 |
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| 3,202 |
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Total other operating expenses |
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| 3,412 |
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| 3,429 |
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| 13,826 |
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| 13,311 |
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INCOME BEFORE INCOME TAXES |
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| 642 |
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| 457 |
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| 1,792 |
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| 3,217 |
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Income tax expense |
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| 6 |
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| (22 | ) |
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| (49 | ) |
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| 170 |
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Net income |
| $ | 636 |
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| $ | 479 |
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| $ | 1,841 |
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| $ | 3,047 |
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Average Shares Outstanding |
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| 2,860,953 |
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| 2,860,953 |
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| 2,860,953 |
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| 2,860,953 |
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Earnings Per Share |
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| 0.22 |
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| 0.17 |
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| 0.64 |
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| 1.07 |
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CONTACT:
Wendy Piper
wpiper@cbthebank.com
SOURCE: Commercial National Financial Corp. (Pennsylvania)
View the original press release on ACCESS Newswire
FAQ
What were CNAF's Q4 2024 earnings compared to Q4 2023?
How much did CNAF's full-year earnings decline in 2024?
What were CNAF's key capital ratios as of December 31, 2024?
What percentage of CNAF's deposits were fully insured core deposits in 2024?
When did CNAF begin experiencing monetary policy easing in 2024?
