Commercial National Reports 55.2% Third Quarter Earnings Increase
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)
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