UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarter ended MARCH 31, 1999
Commission file number 0-18676
COMMERCIAL NATIONAL FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 25-1623213
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
900 LIGONIER STREET LATROBE, PA 15650
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (724) 539-3501
Indicate by checkmark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock.
CLASS OUTSTANDING AT APRIL 30, 1999
Common Stock, $2 Par Value 3,591,508 Shares
<PAGE>
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Included in Part I of this report:
Page
Commercial National Financial Corporation
Consolidated Balance Sheets 3
Consolidated Statements of Income 4
Consolidated Statements of Changes in
Shareholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II - OTHER INFORMATION
Other Information 14
Signatures 15
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
<CAPTION>
March 31 December 31
1999 1998
<S> <C> <C>
ASSETS
Cash and due from banks $ 8,621,677 $ 7,655,963
Interest bearing deposits with
other banks 93,588 67,935
----------------------------
Total cash and due from banks 8,715,265 7,723,898
Federal funds sold - -
Investment securities available for sale 120,423,750 119,103,480
Loans (all domestic) 191,914,739 192,239,249
Less unearned income (116,593) (124,089)
Less allowance for loan losses (1,926,381) (1,914,174)
-----------------------------
Net loans 189,871,765 190,200,986
Premises and equipment 6,097,344 6,027,496
Other assets 3,429,017 3,323,493
-----------------------------
Total Assets $328,537,141 $326,379,353
=============================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits (all domestic):
Non-interest bearing $ 44,913,284 $ 44,518,765
Interest bearing 217,658,389 221,941,756
Total deposits 262,571,673 266,460,521
Short-term borrowings 5,775,000 3,775,000
Other liabilities 1,889,262 2,982,183
Long-term borrowings 15,000,000 10,000,000
Total Liabilities 285,235,935 283,217,704
Shareholders' equity:
Common stock, par value $2; 10,000,000
shares authorized; 3,600,000 issued and
3,592,508 outstanding in 1999; 3,600,000
issued and outstanding in 1998 7,200,000 7,200,000
Retained earnings 34,952,200 34,133,006
Accumulated other comprehensive income -
net of deferred taxes of $672,288
in March 1999 and $942,028 in
December 1998 1,305,029 1,828,643
-----------------------------
43,457,229 43,161,649
Treasury stock, 7,492 shares at cost (156,023) -
-----------------------------
Total Shareholders' Equity 43,301,206 43,161,649
Total Liabilities and
Shareholders' Equity $328,537,141 $326,379,353
=============================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
<CAPTION>
March 31 March 31
1999 1998
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $4,141,580 $4,196,989
Interest and dividends on investments:
Taxable interest 1,296,337 1,256,973
Interest exempt from federal
income tax 516,905 470,000
Interest on federal funds sold 173 940
Interest on bank deposits 1,188 1,431
----------------------------
Total interest income 5,956,183 5,926,333
INTEREST EXPENSE
Interest on deposits 2,131,618 2,379,222
Interest on short-term borrowings 124,076 215,592
Interest on long-term borrowings 154,291 47,630
----------------------------
Total interest expense 2,409,985 2,642,444
NET INTEREST INCOME 3,546,198 3,283,889
Provision for loan losses 120,000 90,000
----------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,426,198 3,193,889
OTHER INCOME
Asset management and trust income 66,048 75,807
Service charges on deposit accounts 162,510 133,041
Other service charges and fees 178,564 154,080
Net securities gains 40,530 11,271
Other income 92,154 84,312
----------------------------
Total other income 539,806 458,511
OTHER EXPENSES
Salaries and employee benefits 1,308,743 1,206,906
Net occupancy expense 153,234 150,888
Furniture and equipment expense 136,893 142,115
Pennsylvania shares tax 81,191 72,814
Other expense 591,678 517,349
----------------------------
Total other expenses 2,271,739 2,090,072
INCOME BEFORE TAXES 1,694,261 1,562,328
Applicable income taxes 407,800 382,000
----------------------------
NET INCOME $1,286,461 $1,180,328
============================
Average shares outstanding 3,595,996 3,600,000
============================
EARNINGS PER SHARE $ .36 $ .33
============================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
<CAPTION>
Accumulated
Other Total
Common Retained Treasury Comprehensive Shareholders'
Stock Earnings Stock Income Equity
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1997 $3,600,000 $34,604,120 $ - $ 240,891 $38,445,011
Comprehensive Income
Net income - 1,180,328 - - 1,180,328
Other comprehensive income, net of tax:
Unrealized gains on securities
of $105,889, net of reclassification
adjustment for gains included in net
income of $(7,439) - - - 98,450 98,450
Total Comprehensive Income 1,278,778
Cash dividends declared
$.10 per share - (360,000) - - (360,000)
---------------------------------------------------------------------
Balance at March 31, 1998 $3,600,000 $35,424,448 - $ 339,341 $39,363,789
=====================================================================
Balance at December 31, 1998 $7,200,000 $34,133,006 - $1,828,643 $43,161,649
Comprehensive Income
Net income - 1,286,461 - - 1,286,461
Other comprehensive income, net of tax:
Unrealized gains on securities
of $105,889, net of reclassification
adjustment for gains included in net
income of $(26,750) - - - (523,614) (523,614)
Total Comprehensive Income 762,847
Cash dividends declared
$.10 per share - (467,267) - - (467,267)
Purchase of treasury stock - - (156,023) - (156,023)
---------------------------------------------------------------------
Balance at March 31, 1999 $7,200,000 $34,952,202 $(156,023) $1,305,029 $43,301,206
=====================================================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
<TABLE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
For Three Months
Ended March 31
1999 1998
<S> <C> <C>
OPERATING ACTIVITIES
Net income $1,286,461 $1,180,328
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization 141,711 144,986
Provision for loan losses 120,000 90,000
Net accretion/(amortization) of securities
and loan fees 25,216 27,176
Increase in interest receivable (93,304) (126,784)
Decrease in interest payable (245,888) (197,617)
Increase in taxes payable 120,358 147,812
Decrease in other liabilities (697,652) (513,901)
Increase in other assets (8,220) (75,136)
Net security gains (40,530) (11,271)
---------------------------
Net cash provided by operating activities 604,152 665,593
---------------------------
INVESTING ACTIVITIES
Net (increase) decrease in deposits
with other banks (25,653) (11,222)
Net decrease in fed funds sold - -
Purchase of securities AFS (14,996,190) (2,735,950)
Purchase of securities HTM - (1,966,778)
Maturities and calls of securities AFS 7,528,967 757,215
Maturities and calls of securities HTM - 6,000,000
Proceeds from sales of securities AFS 5,360,878 -
Net (increase) decrease in loans 217,257 (1,579,391)
Purchase of premises and equipment (211,559) (287,152)
----------------------------
Net cash used in investing activities (2,126,300) 176,722
----------------------------
FINANCING ACTIVITIES
Net decrease in deposits (3,888,848) (4,097,479)
Net increase (decrease) in other short-term borrowings 2,000,000 (4,000,000)
Proceeds from long-term borrowings 5,000,000 5,000,000
Dividends paid (467,267) (360,000)
Purchase of treasury stock (156,023) -
----------------------------
Net cash provided by financing activities 2,487,862 (3,457,479)
----------------------------
965,714 (2,615,164)
Cash and cash equivalents at beginning of year 7,655,963 9,711,026
----------------------------
Cash and cash equivalents at end of quarter $ 8,621,677 $ 7,095,862
============================
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 2,655,873 $ 2,840,061
============================
Income Taxes $ 386,000 $ 319,000
============================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
COMMERCIAL NATIONAL FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
Note 1 Management Representation
- ------ -------------------------
The accompanying unaudited consolidated interim financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information. However, they do not include all information
and footnotes required by generally accepted accounting principles for complete
financial statements and should be read in conjunction with the annual
financial statements of Commercial National Financial Corporation for the year
ending December 31, 1998, including the notes thereto. In the opinion of
management, the unaudited interim consolidated financial statements include all
adjustments (consisting of only normal recurring adjustments) necessary for a
fair statement of financial position as of March 31, 1999 and the results of
operations for the three month periods ended March 31, 1999 and 1998, and the
statements of cash flows and changes in shareholders' equity for the three
month periods ended March 31, 1999 and 1998. The results of the three months
ended March 31, 1999 are not necessarily indicative of the results to be
expected for the entire year.
Note 2 Allowance for Loan Losses
- ------ -------------------------
Description of changes:
1999 1998
Allowance balance January 1 $ 1,914,174 1,882,251
Additions:
Provision charged to operating expenses 120,000 90,000
Recoveries on previously charged off
loans 2,509 1,968
Deductions:
Loans charged off (110,302) (111,963)
-------------------------
Allowance balance March 31 $ 1,926,381 $ 1,862,256
=========================
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
First Three Months of 1999 as compared to the First Three Months of 1998
- ------------------------------------------------------------------------
Pre-tax net income for the first three months of 1999 was $1,694,261 compared
to $1,562,328 during the same period of 1998, representing an 8.44% increase.
Interest income was $5,956,183, an increase of .50%. The loan return rate
decreased forty-two (42) basis points to 8.65% and the securities return rate
increased eight(8) basis point to 6.04%. As a result, the return rate on total
average earning assets decreased twenty-two (22) basis points to 7.65%. Average
earning asset volume rose $10,325,901, a 3.43% increase.
Interest expense was $2,409,985, a decrease of 8.80%. The cost rate on average
interest-bearing liabilities was 3.96%, a forty-four (44) basis point decrease
from a year ago. Average interest-bearing liabilities volume rose $3,157,579,
an increase of 1.32%.
Net interest income rose 7.99% to $3,546,198, and represented 4.31% of average
total assets compared to 4.15% during the first three months of 1998.
The average allowance for loan losses increased 2.93% to $1,925,146. By
comparison, total average loans grew 3.41% during the same period. The 1999
first three months provision for loan losses was $120,000, compared to $90,000
for the first three months of 1998, a 33.33% increase.
Net interest income after the application of the provision for loan losses grew
$232,309 to $3,426,198, representing a 4.16% return on total average assets
compared to 4.04% for the first three months of 1998.
Non-interest income increased 17.73% to $539,806. Asset management and trust
fees totaled $66,048. Service charges on deposit accounts increased 22.15% to
$162,510. Other service charges and fees rose 15.89% reaching $178,564. Other
income increased 9.30% to $92,154. Securities gains of 40,530 were realized on
sold investments.
Non-interest expense reached $2,271,739, an increase of 8.69%, or $181,667,
while total average assets grew 4.02%. Personnel costs rose 8.44%, a $101,837
increase. Net occupancy expense rose 1.55%, or $2,346. Furniture and equipment
expense declined 3.67%, representing a cost decrease of $5,222. Pennsylvania
shares tax expense was $81,191, an increase of 11.50%. Other expense rose
14.37%, an increase of $74,329.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
- ---------------------------------
First Three Months of 1999 as compared to the First Three Months of 1998
(continued)
- ------------------------------------------------------------------------
Federal income tax on total first three months earnings was $407,800 compared
to $382,000 a year ago. Net income after taxes increased $106,133 to
$1,286,461, an increase of 8.99%. The annualized return on average assets was
1.56% for the first three months of 1999 compared to 1.49% for the three months
ended March 31, 1998. The annualized return on average equity through March 31,
1999 was 11.85% and had been 12.14% through the first three months of 1998.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
- ---------------------------------
LIQUIDITY
- ---------
Liquidity, the measure of the corporation's ability to meet the normal cash
flow needs of depositors and borrowers in an efficient manner, is generated
primarily from the acquisition of deposit funds and the maturity of loans and
securities. Additional liquidity can be provided by the sale of investment
securities available for sale which amounted to $118,027,618 with net
unrealized gains of $1,917,317 on March 31, 1999.
During the first three months of 1999, average interest-bearing liabilities
increased $3,157,579 over the same period in 1998. Investments maturing within
one year were 6.51% of total assets on March 31, 1999 and 7.40% on March 31,
1998.
Average loans grew by $6,315,702 and the average securities portfolio
(including federal funds sold) increased $4,010,199.
INTEREST SENSITIVITY
- --------------------
Interest rate management seeks to maintain a balance between consistent income
growth and the risk that is created by variations in ability to reprice deposit
and investment categories. The effort to determine the effect of potential
interest rate changes normally involves measuring the so called "gap" between
assets (loans and securities) subject to rate fluctuation and liabilities
(interest bearing deposits) subject to rate fluctuation as related to earning
assets over different time periods and calculating the ratio of interest
sensitive assets to interest sensitive liabilities.
Repricing periods for the loans, securities, interest bearing deposits, non-
interest bearing assets and non-interest bearing liabilities are based on
contractual maturities, were applicable, as well as the corporation's
historical experience regarding the impact of interest rate fluctuations on the
prepayment and withdrawal patterns of certain assets and liabilities. Regular
savings, NOW and other similar interest bearing demand deposit accounts are
subject to immediate withdrawal without penalty and therefore are presented as
beginning to reprice in the earliest period presented in the "gap" table.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
RESULTS OF OPERATIONS (Continued)
- ---------------------------------
INTEREST SENSITIVITY (In thousands)
- -----------------------------------
The following table presents this information as of March 31, 1999 and December
31, 1998:
<TABLE>
<CAPTION>
March 31, 1999
0-30 DAYS 31-90 DAYS 91-180 DAYS 181-365 DAYS 1 - 5 YEARS OVER 5 YRS
<S> <C> <C> <C> <C> <C> <C>
Interest sensitive
assets $ 44,009 $ 9,644 $ 12,112 $ 19,515 $ 120,072 $103,191
Interest sensitive
liabilities $ 15,504 $ 20,798 $ 29,549 $ 50,413 $ 109,351 $ 17,820
Interest sensitivity ------------------------------------------------------------------------------------
gap $ 28,505 $ (11,154) $ (17,437) $ (30,898) $ 10,721 $ 85,371
====================================================================================
Cumulative gap $ 17,351 $ (86) $ (30,984) $ (20,263) $ 65,108
Ratio of cumulative gap ======================================================================
to earning assets 5.55% (0.03%) (9.90%) (6.48%) 20.81%
======================================================================
</TABLE>
<TABLE>
<CAPTION>
December 31, 1998
0-30 DAYS 31-90 DAYS 91-180 DAYS 181-365 DAYS 1 - 5 YEARS OVER 5 YRS
<S> <C> <C> <C> <C> <C> <C>
Interest sensitive
assets $ 45,494 $ 6,527 $ 13,272 $ 22,556 $ 109,898 $108,364
Interest sensitive
liabilities $ 11,186 $ 34,038 $ 25,084 $ 38,757 $ 109,293 $ 17,359
Interest sensitivity ------------------------------------------------------------------------------------
gap $ 34,308 $ (27,511) $ (11,812) $ (16,201) $ 605 $ 91,005
====================================================================================
Cumulative gap $ 6,797 $ (5,015) $ (21,216) $ (20,611) $ 70,394
Ratio of cumulative gap ======================================================================
to earning assets 2.18% (1.61%) (6.82%) (6.62%) 22.62%
======================================================================
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
CREDIT QUALITY RISK
- -------------------
The following table presents a comparison of loan performance as of March 31,
1999 with that of March 31, 1998. Non-accrual loans are those for which
interest income is recorded only when received and past due loans are those
which are contractually past due 90 days or more in respect to interest or
principal payments. As of March 31, 1999 the corporation had no other real
estate owned and no in-substance foreclosures.
At March 31
1999 1998
Non-performing Loans:
Loans on non-accrual basis $ - $ -
Past due loans 434,622 371,859
Renegotiated loans 555,367 930,547
Total Non-performing Loans $ 989,989 $ 1,302,406
Other real estate owned - -
Total non-performing assets $ 989,989 $ 1,302,406
Loans outstanding at end of period $ 191,798,146 $ 184,957,996
Average loans outstanding (year-to-date) $ 191,488,903 $ 185,173,201
Non-performing loans as percent of total
loans .52% .70%
Provision for loan losses $ 120,000 $ 90,000
Net charge-offs as percent of average
loans .06% .06%
Provision for loan losses as
percent of net charge-offs 111.33% 81.82%
Reserve for loan losses as
percent of average loans outstanding 1.01% 1.01%
CAPITAL RESOURCES
- -----------------
Shareholders' equity for the first three months of 1999 averaged $43,434,099
which represented an increase of $4,556,167 over the average capital of
$38,877,932 recorded in the same period of 1998. These capital levels
represented a capital ratio of 13.19% in 1999 and 12.30% in 1998. When the
loan loss allowance is included, the 1999 capital ratio becomes 13.78%.
The Federal Reserve Board's risk-based capital guidelines are designed
principally as a measure of credit risk. These guidelines require that: (1) at
least 50% of a banking organization's total capital be common and certain other
"core" equity capital ("Tier I Capital"); (2) assets and off-balance sheet
items must be weighted according to risk; and (3) the total capital to risk-
weighted assets ratio be at least 8.00%; and (4) a minimum 4.00% leverage ratio
of Tier I capital to average total assets be maintained. As of March 31, 1999,
the corporation, under these guidelines, had a Tier I and total equity capital
to risk adjusted assets ratio of 22.24% and 23.26% respectively. The leverage
ratio was 12.86%.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
CAPITAL RESOURCES (continued)
- -----------------------------
The table below presents the corporation's capital position at March 31, 1999
(Dollar amounts in thousands)
Percent
of Adjusted
Amount Assets
------ -----------
Tier I Capital $ 41,996 22.24
Tier I Capital Requirement 7,553 4.00
Total Equity Capital $ 43,923 23.26
Total Equity Capital Requirement 15,106 8.00
- ----------------------------------------------------------------------
Leverage Capital $ 41,996 12.86
Leverage Requirement 13,062 4.00
Year 2000
- ---------
In 1997, the corporation's year 2000 committee was formed and began an analysis
of year 2000 issues that may affect the day to day business operations of the
corporation and the bank. The year 2000 issue is the result of computer
programs being written using two digits rather than four to define the
applicable year. Any systems that have time sensitive software may recognize
a date using "00" as the year 1900 rather than 2000 and, in turn, may result in
miscalculations and/or system failures.
The corporation has completed the assessment phase and testing of all
software regarding the year 2000 issue confirmed that we are well prepared for
the century date rollover. The corporation is primarily dependent upon systems
that have been developed by third parties and, therefore, is dependent upon
vendor compliance.
The corporation has developed contingency plans for all mission critical
systems. These plans involve automated as well as manual actions and may
require additional staffing requirements and will detail procedures to be
followed in the unlikely event of any disruptions.
Based on our assessment of the vendors and testing currently being done, the
corporation estimates the costs associated with addressing the issue will be
approximately $500,000 with items being expensed as incurred or capitalized,
whenever appropriate. These costs or any additional costs associated with the
year 2000 issue are not expected to have a material impact on the corporation's
financial position. The corporation has and will continue to devote the
necessary time and resources to resolve the year 2000 issue in a timely manner.
The corporation continues to evaluate the effect of the year 2000 issue on its
commercial customers. Failure of a commercial customer to prepare for year 2000
could adversely affect the customer's operations and, in turn, affect the
corporation's ability to collect outstanding loans and retain deposit balances.
The corporation mailed questionnaires to its commercial customers regarding the
potential effect that year 2000 could have on their businesses. Those customers
deemed mission critical by senior management will be placed on a year 2000
watch list and will be contacted on an ongoing basis regarding their 2000
readiness.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Not applicable
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMERCIAL NATIONAL FINANCIAL CORPORATION
(Registrant)
Dated: May 12, 1999 [S] Louis T. Steiner
-----------------------------------
Louis T. Steiner, Vice Chairman,
President and Chief Executive Officer
Dated: May 12, 1999 [S] Wendy S. Schmucker
------------------------------------
Wendy S. Schmucker
Secretary/Treasurer
<PAGE>
Commercial National Financial Corporation
900 Ligonier Street
Latrobe, Pennsylvania 15650
Telephone (724) 539-3501
Commercial National Bank of Westmoreland County
OFFICE LOCATIONS
Latrobe Area
900 Ligonier Street (724) 539-3501
1900 Lincoln Avenue (724) 537-9980
11 Terry Way * (724) 539-9774
Pleasant Unity
Church Street * (724) 423-5222
Ligonier
201 Main Street * (724) 238-9538
West Newton
109 East Main Street * (724) 872-5100
Greensburg Area
Georges Station Road * (724) 836-7698
19 North Main Street (724) 836-7699
Asset Management and (724) 836-7670
Trust Division
19 North Main Street
Drive-up Facility
Latrobe
Lincoln Road at
Josephine Street * (724) 537-9927
Murrysville
4785 Old William Penn Highway* (724) 733-4888
* Automatic Teller Facilities
Automatic Teller Facilities also located at Latrobe Area Hospital, Westmoreland
County Airport, and Saint Vincent College
Touchtone Teller 24-hour banking service: Website Address:
(724)537-9977 www.cnbthebank.com
Free from Blairsville, Derry,
Greensburg, Kecksburg, Latrobe,
Ligonier and New Alexandria.
1-800-803-BANK
Free from all other locations.
INSURANCE
Commercial National Insurance Services
232 North Market Street
Ligonier, PA 15658
724/238-4617
877/205-4617 (toll free)
724/238-0160 (fax)
[email protected]
Commercial National Insurance Services is a partnership of Gooder & Mary, Inc.,
and Commercial National Investment Corporation, a wholly owned subsidiary of
Commercial National Financial Corporation.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 8,621,677
<INT-BEARING-DEPOSITS> 93,588
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 120,423,750
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 191,798,146
<ALLOWANCE> (1,926,381)
<TOTAL-ASSETS> 328,537,141
<DEPOSITS> 262,571,673
<SHORT-TERM> 5,775,000
<LIABILITIES-OTHER> 1,889,262
<LONG-TERM> 15,000,000
0
0
<COMMON> 7,200,000
<OTHER-SE> 36,101,206
<TOTAL-LIABILITIES-AND-EQUITY> 328,537,141
<INTEREST-LOAN> 4,141,580
<INTEREST-INVEST> 1,813,415
<INTEREST-OTHER> 1,188
<INTEREST-TOTAL> 5,956,183
<INTEREST-DEPOSIT> 2,131,618
<INTEREST-EXPENSE> 2,409,985
<INTEREST-INCOME-NET> 3,546,198
<LOAN-LOSSES> 120,000
<SECURITIES-GAINS> 40,530
<EXPENSE-OTHER> 2,271,739
<INCOME-PRETAX> 1,694,261
<INCOME-PRE-EXTRAORDINARY> 1,694,261
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,286,461
<EPS-PRIMARY> $ .36
<EPS-DILUTED> $ .36
<YIELD-ACTUAL> 7.65
<LOANS-NON> 0
<LOANS-PAST> 434,622
<LOANS-TROUBLED> 555,367
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,914,174
<CHARGE-OFFS> 110,302
<RECOVERIES> 2,509
<ALLOWANCE-CLOSE> 1,926,382
<ALLOWANCE-DOMESTIC> 1,926,382
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
