16
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, 2000
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, 2000
Common Stock, $2 Par Value 3,527,568 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
2000 1999
<S> <C> <C>
ASSETS
Cash and due from banks $ 7,338,606 $ 8,654,617
Interest bearing deposits with
other banks 77,525 558,781
----------------------------
Total cash and due from banks 7,416,131 9,213,398
Federal funds sold - 5,750,000
Investment securities available for sale 117,595,466 124,743,186
Loans (all domestic) 202,369,699 204,959,798
Less unearned income (44,953) (120,463)
Less allowance for loan losses (1,958,219) (1,919,453)
----------------------------
Net loans 200,366,527 202,919,882
Premises and equipment 6,262,834 6,304,454
Other assets 5,553,603 6,367,070
----------------------------
Total Assets $337,194,561 $355,297,990
============================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits (all domestic):
Non-interest bearing $ 42,147,319 $ 41,534,998
Interest bearing 228,041,460 231,412,405
----------------------------
Total deposits 270,188,779 272,947,403
Short-term borrowings 5,275,000 15,000,000
Other liabilities 1,745,550 2,946,694
Long-term borrowings 20,000,000 25,000,000
----------------------------
Total Liabilities 297,209,329 315,894,097
Shareholders' equity:
Common stock, par value $2; 10,000,000
shares authorized; 3,600,000 issued;
3,527,568 and 3,539,643 shares
outstanding in 2000 and 1999 7,200,000 7,200,000
Retained earnings 35,813,117 35,190,986
Accumulated other comprehensive income -
net of deferred taxes of $672,288
in March 2000 and $(931,218) in
December 1999 (1,628,245) (1,807,660)
Treasury stock, 72,432 shares at cost,
60,357 in 1999 (1,399,640) (1,179,433)
---------------------------
Total Shareholders' Equity 39,985,232 39,403,893
Total Liabilities and
Shareholders' Equity $337,194,561 $355,297,990
===========================
</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
2000 1999
<S> <C> <C>
INTEREST INCOME:
Interest and fees on loans $4,293,161 $4,141,580
Interest and dividends on investments:
Taxable interest 1,396,508 1,296,337
Interest exempt from federal
income tax 593,681 516,905
Interest on federal funds sold 67,634 173
Interest on bank deposits 5,824 1,188
-----------------------
Total interest income 6,356,808 5,956,183
INTEREST EXPENSE
Interest on deposits 2,309,041 2,131,618
Interest on short-term borrowings 164,142 124,076
Interest on long-term borrowings 301,695 154,291
-----------------------
Total interest expense 2,774,878 2,409,985
NET INTEREST INCOME 3,581,930 3,546,198
Provision for loan losses 165,000 120,000
NET INTEREST INCOME AFTER -----------------------
PROVISION FOR LOAN LOSSES 3,416,930 3,426,198
OTHER INCOME
Asset management and trust income 117,969 66,048
Service charges on deposit accounts 172,115 162,510
Other service charges and fees 177,020 178,564
Net securities gains (862,844) 40,530
Other income 902,830 92,154
-----------------------
Total other income 507,090 539,806
OTHER EXPENSES
Salaries and employee benefits 1,378,222 1,308,745
Net occupancy expense 149,991 153,234
Furniture and equipment expense 202,924 136,893
Pennsylvania shares tax 90,811 81,191
Other expense 575,861 591,680
-----------------------
Total other expenses 2,397,809 2,271,743
INCOME BEFORE TAXES 1,526,211 1,694,261
Income tax expense 304,700 407,800
-----------------------
NET INCOME $1,221,511 $1,286,461
=======================
Average shares outstanding 3,532,520 3,595,996
=======================
EARNINGS PER SHARE $ .35 $ .36
=======================
</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, 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
======================================================================
Balance at December 31, 1999 $7,200,000 $35,190,986 $(1,179,433) $(1,807,660) $39,403,893
Comprehensive Income
Net income - 1,221,511 - - 1,221,511
Other comprehensive income, net of tax:
Unrealized net losses on securities
of $(390,062), net of reclassification
adjustment for losses included in net
income of $569,477 - - - 179,415 179,415
Total Comprehensive Income 1,400,927
Cash dividends declared
$.17 per share - (599,380) - - (599,380)
Purchase of treasury stock - - (220,207) - (220,207)
----------------------------------------------------------------------
Balance at March 31, 2000 $7,200,000 $35,813,117 $(1,399,640) $(1,628,245) $39,985,232
======================================================================
</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
2000 1999
<S> <C> <C>
OPERATING ACTIVITIES
Net income $1,221,511 $1,286,461
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization 194,447 141,711
Provision for loan losses 165,000 120,000
Net accretion/(amortization) of securities
and loan fees (90,375) 25,216
(Decrease) increase in interest receivable 32,607 (93,304)
Decrease in interest payable (458,209) (245,888)
Increase in taxes payable - 120,358
Decrease in taxes receivable 11,297 -
Decrease in other liabilities (742,935) (697,652)
Increase in other assets 676,880 (8,220)
Net security (losses) gains 862,844 (40,530)
--------------------------
Net cash provided by operating activities 1,873,067 604,152
--------------------------
INVESTING ACTIVITIES
Net (increase) decrease in deposits
with other banks 481,256 (25,653)
Net decrease in fed funds sold 5,750,000 -
Purchase of securities AFS (29,076,683) (14,996,190)
Maturities and calls of securities AFS 4,035,678 7,528,967
Proceeds from sales of securities AFS 31,611,460 5,360,878
Net (increase) decrease in loans 2,464,991 217,257
Purchase of premises and equipment (152,827) (211,559)
--------------------------
Net cash used in investing activities 15,113,875 2,126,300
--------------------------
FINANCING ACTIVITIES
Net decrease in deposits (2,758,366) (3,888,848)
Net decrease in other short-term borrowings (9,725,000) (2,000,000)
Proceeds from long-term borrowings (5,000,000) 5,000,000
Dividends paid (599,380) (467,267)
Purchase of treasury stock (220,207) (156,023)
--------------------------
Net cash provided by financing activities (18,302,953) (2,487,862)
--------------------------
(1,316,011) 965,714
--------------------------
Cash and cash equivalents at beginning of year 8,654,617 7,655,963
Cash and cash equivalents at end of quarter $ 7,338,606 $ 8,621,677
==========================
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest $ 3,233,087 $ 2,655,873
==========================
Income Taxes $ 155,000 $ 386,000
==========================
</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, 2000
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, 1999, 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, 2000 and the
results of operations for the three month periods ended March 31,
2000 and 1999, and the statements of cash flows and changes in
shareholders' equity for the three month periods ended March 31,
2000 and 1999. 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:
2000 1999
Allowance balance January 1 $1,919,453 $1,914,174
Additions:
Provision charged to operating expenses 165,000 120,000
Recoveries on previously charged off
loans 2,977 2,509
Deductions:
Loans charged off (129,211) (110,302)
------------------------
Allowance balance March 31 $1,958,219 $1,926,381
========================
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
---------------------
First Three Months of 2000 as compared to the First Three Months
of 1999
-----------------------------------------------------------------
Pre-tax net income for the first three months of 2000 was
$1,526,211 compared to $1,694,261 during the same period of 1999,
representing a 9.92% decrease.
Interest income was $6,356,808, an increase of 6.73%. The loan
return rate decreased twenty-two (22) basis points to 8.43% and
the securities return rate increased thirteen (13) basis points
to 6.17%. As a result, the return rate on total average earning
assets decreased twelve (12) basis points to 7.53%. Average
earning asset volume rose $25,936,693, a 8.32% increase.
Interest expense was $2,774,878, an increase of 15.14%. The cost
rate on average interest-bearing liabilities was 4.19%, a twenty-
three (23) basis point increase from a year ago. Average interest-
bearing liabilities volume rose $22,048,346, an increase of
9.07%.
Net interest income rose 1.01% to $3,581,930, and represented
4.10% of average total assets compared to 4.31% during the first
three months of 1999.
The average allowance for loan losses increased .77% to
$1,940,023. By comparison, total average loans grew 6.40% during
the same period. The 2000 first three months provision for loan
losses was $165,000, compared to $120,000 for the first three
months of 1999, a 37.50% increase.
Net interest income after the application of the provision for
loan losses decreased $9,628 to $3,416,930, representing a 3.91%
return on total average assets compared to 4.16% for the first
three months of 1999.
Non-interest income decreased 6.06% to $507,090. Asset management
and trust fees continue to do well and totaled $117,969. Service
charges on deposit accounts increased 5.91% to $172,115. Other
service charges and fees declined .86% and was $177,020. Other
income increased substantially by 879.70% to $902,830. This
increase reflects an $817,413 premium that the bank received in
selling its' credit card portfolio. Net securities losses of
862,844 were realized on sold investments. The bank repositioned
it's investment portfolio to take advantage of higher yields that
were available in the bond market.
Non-interest expense reached $2,297,809, an increase of 5.55%, or
$126,066, while total average assets grew 6.25%. Personnel costs
rose 5.31%, a $69,477 increase. Net occupancy declined 2.12%, or
$3,243. Furniture and equipment expense rose 48.24%, representing
a cost increase of $66,031. This increase was due to a major
upgrade of a computer operating system that was installed
throughout the bank during 1999. Pennsylvania shares tax expense
was $90,811, an increase of 11.85%. Other expense declined 2.67%,
a decrease of $15,819.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
---------------------------------
First Three Months of 2000 as compared to the First Three Months
of 1999 continued
-----------------------------------------------------------------
Federal income tax on total first three months earnings was
$304,700 compared to $407,800 a year ago. Net income after taxes
decreased $64,952 to $1,221,511, a decrease of 5.05%. The
annualized return on average assets was 1.40% for the first three
months of 2000 compared to 1.56% for the three months ended March
31, 1999. The annualized return on average equity through March
31, 2000 was 11.90% and had been 11.85% through the first three
months of 1999.
<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 $120,062,504 with
net unrealized losses of $2,467,038 on March 31, 2000.
During the first three months of 2000, average interest-bearing
liabilities increased $22,048,346 over the same period in 1999.
Investments maturing within one year were 3.56% of total assets
on March 31, 2000 and 6.51% on March 31, 1999.
Average loans grew by $12,246,556 and the average securities
portfolio (including federal funds sold) increased $13,690,137.
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,
2000 and December 31, 1999:
<TABLE>
<CAPTION>
March 31, 2000
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 $ 35,882 $ 6,474 $ 9,286 $ 19,284 $ 123,351 $124,116
Interest sensitive
liabilities $ 15,682 $ 27,723 $ 24,205 $ 35,730 $ 91,672 $ 58,304
Interest sensitivity ------------------------------------------------------------------------------
gap $ 20,200 $ (21,249) $ (14,919) $ (16,446) $ 31,679 $ 65,812
==============================================================================
Cumulative gap $ (1,049) $ (15,968) $ (32,414) $ (735) $ 65,077
==================================================================
Ratio of cumulative gap
to earning assets (.33%) (5.00%) (10.15%) (.23%) 20.38%
==================================================================
</TABLE>
<TABLE>
<CAPTION>
December 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 $ 47,052 $ 5,652 $ 10,254 $ 19,052 $ 134,734 $117,867
Interest sensitive
liabilities $ 32,528 $ 35,983 $ 24,841 $ 29,907 $ 91,278 $ 56,875
Interest sensitivity -------------------------------------------------------------------------------
gap $ 14,524 $ (30,331) $ (14,587) $ (10,855) $ 43,456 $ 60,992
===============================================================================
Cumulative gap $ (15,807) $ (30,394) $ (41,249) $ 2,207 $ 63,199
==================================================================
Ratio of cumulative gap
to earning assets (4.68%) (9.00%) (12.20%) 0.65% 18.70%
==================================================================
</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, 2000 with that of March 31, 1999. 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, 2000 the corporation had
89,322 in other real estate owned and no in-substance foreclosures.
At March 31
2000 1999
Non-performing Loans:
Loans on non-accrual basis $ 584,510 $ -
Past due loans 178,123 434,622
Renegotiated loans 469,276 555,367
------------------------------
Total Non-performing Loans $ 1,231,909 $ 989,989
Other real estate owned 89,322 -
------------------------------
Total non-performing assets $ 1,321,231 $ 989,989
==============================
Loans outstanding at end of period $202,324,746 $191,798,146
Average loans outstanding (year-to-date) $203,735,459 $191,488,903
Non-performing loans as percent of total
loans .65% .52%
Provision for loan losses $ 165,000 $ 120,000
Net charge-offs as percent of average
loans .06% .06%
Provision for loan losses as
percent of net charge-offs 130.71% 111.33%
Allowance for loan losses as
percent of average loans outstanding .97% 1.01%
CAPITAL RESOURCES
- -----------------
Shareholders' equity for the first three months of 2000 averaged $41,063,897
which represented an decrease of $2,370,202 over the average capital of
$43,434,099 recorded in the same period of 1999. These capital levels
represented a capital ratio of 11.74% in 2000 and 13.19% in 1999. When the
loan loss allowance is included, the 1999 capital ratio becomes 12.29%.
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
3.00% leverage ratio of Tier I capital to average total assets be
maintained for financial institutions that meet certain specified
criteria, including asset quality, high liquidity, low interest-rate
exposure and the highest regulatory rating. As of March 31, 2000, the
corporation, under these guidelines, had a Tier I and total equity capital
to risk adjusted assets ratio of 20.59% and 21.56% respectively. The
leverage ratio was 11.79%.
<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, 2000
(dollar amounts in thousands)
Percent
of Adjusted
Amount Assets
-----------------------
Tier I Capital $ 41,613 20.59
Tier I Capital Requirement 8,084 4.00
Total Equity Capital $ 43,613 21.56
Total Equity Capital Requirement 16,168 8.00
Leverage Capital $ 41,613 11.79
Leverage Requirement 10,593 3.00
<PAGE>
Year 2000
- ---------
During 1999 and years prior, the corporation completed the process
of preparing for the year 2000 date change. This process involved
reviewing, modifying and replacing existing hardware and
software, as necessary. The corporation also assessed the
preparedness of our third party vendors, whom we are heavily
dependent upon, along with our major commercial loan customers.
Contingency plans for the year 2000 were developed and maintained
throughout the pre-event period in order to be prepared for any
year 2000 glitches that may occur.
To date, the corporation has not encountered any materially
significant problems associated with our mission critical systems
or vendors. Occurrences related to the year 2000 issue could
still occur and may have a material impact on the operations and
the financial corporation of the corporation and its customers.
In the event that customers' financial positions are weakened due
to the year 2000 issue, credit quality could be affected. The
corporation will continue to monitor the year 2000 issue
throughout 2000 and act accordingly should any problem arise.
<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 8, 2000 /s/ Louis T. Steiner
-------------------------------------
Louis T. Steiner, Vice Chairman,
President and Chief Executive Officer
Dated: May 8, 2000 /s/ Wemdy 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 Pennsylvania
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
In addition to the full-service MAC machines located at all Commercial
National Bank community offices indicated above (except Latrobe and
Courthouse Square), additional ATMs are available for your 24-hour
banking convenience at Arnold Palver Regional Airport, Greensburg
Kirk Nevin Arena, Latrobe Area Hospital, New Alexandria Qwik Mart,
Norvelt Open Pantry and Saint Vincent College. All are liked to the
national Cirrus, Honor and Plus networks and also accept MasterCard,
Visa, Discover and Amercian Express for cash advances.
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 Commercial National Insurance
232 North Market Street Services is a partnership
Ligonier, PA 15658 of Gooder & Mary, Inc., and
Commercial National Investment
724/238-4617 Corporation, a wholly owned
877/205-4617 (toll free) subsidiary of Commercial National
724/238-0160 (fax) Financial Corporation.
[email protected]
www.cnbinsurance.com
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 7,338,606
<INT-BEARING-DEPOSITS> 77,525
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 117,595,466
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 202,324,746
<ALLOWANCE> 1,958,219
<TOTAL-ASSETS> 337,194,561
<DEPOSITS> 270,188,719
<SHORT-TERM> 5,275,000
<LIABILITIES-OTHER> 1,745,550
<LONG-TERM> 20,000,000
0
0
<COMMON> 7,200,000
<OTHER-SE> 32,785,232
<TOTAL-LIABILITIES-AND-EQUITY> 337,194,561
<INTEREST-LOAN> 4,293,161
<INTEREST-INVEST> 2,057,823
<INTEREST-OTHER> 5,824
<INTEREST-TOTAL> 6,356,808
<INTEREST-DEPOSIT> 2,309,041
<INTEREST-EXPENSE> 2,774,878
<INTEREST-INCOME-NET> 3,581,930
<LOAN-LOSSES> 165,000
<SECURITIES-GAINS> (862,844)
<EXPENSE-OTHER> 2,397,809
<INCOME-PRETAX> 1,526,211
<INCOME-PRE-EXTRAORDINARY> 1,526,211
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,221,511
<EPS-BASIC> .35
<EPS-DILUTED> .35
<YIELD-ACTUAL> 7.53
<LOANS-NON> 584,510
<LOANS-PAST> 178,123
<LOANS-TROUBLED> 469,276
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,919,453
<CHARGE-OFFS> 129,211
<RECOVERIES> 2,977
<ALLOWANCE-CLOSE> 1,958,219
<ALLOWANCE-DOMESTIC> 1,958,219
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
