Community National Bank Announces Earnings For First Quarter Of 2013

     Community National Bank Announces Earnings For First Quarter Of 2013

PR Newswire

GREAT NECK, N.Y., April 17, 2013

GREAT NECK, N.Y., April 17, 2013 /PRNewswire/ --Community National Bank
(SYMBOL: CBNY) today announced first quarter results for 2013. Highlights for
the quarter include:

  oNet income of $942 thousand or $0.14 per share for the first quarter of
    2013 compared to net income of $527 thousand or $0.08 per share for the
    same period in 2012.
  oNet interest income increased 28% or $1.4 million to $6.2 million for the
    quarter ended March 31, 2013 compared to $4.8 million for the quarter
    ended March 31, 2012.
  oReturn on average assets and equity of 0.55% and 5.24%, respectively, for
    the quarter ended March 31, 2013 compared to 0.38% and 3.09%,
    respectively, for the quarter ended March 31, 2012.
  oCommercial loans grew $98.2 million or 35% to $374.8 million at March 31,
    2013 when compared to March 31, 2012.
  oOn a linked quarter basis, commercial loans increased $23.2 million or
    6.6% when compared to December 31, 2012.
  oDeposits increased $113.0 million or 24% to $588.0 million at March 31,
    2013 compared to $475 million at March 31, 2012.
  oDemand deposits grew $53.4 million or 49% to 162.0 million at March 31,
    2013 compared to March 31, 2012.
  oContinued strong asset quality with non-performing assets to total assets
    of 0.15%, which is well below peer group average.

Stuart Lubow, Chairman, President and CEO of Community National Bank commented
"The Bank had a solid first quarter with continued growth in the commercial
loan portfolio. This growth helped increase net interest income to $6.2
million at March 31, 2013, an increase of $550 thousand or 9.8% when compared
to the linked quarter ended December 31, 2012. The first quarter results
demonstrated our success in building on the momentum in core earnings from
2012. Service charges increased $104 thousand or 73% to $246 thousand for the
quarter ended March 31, 2013 when compared to March 31, 2012. Our commercial
loan pipeline remains strong, but the low interest rate environment will
continue to create margin compression and loan prepayments in the future."

Net Earnings and Net Interest Income
Net income for the quarter ended March 31, 2013 was $942 thousand or $0.14
basic earnings per share compared to net income of $527 thousand or $0.08
basic earnings per share for the same period in 2012, an increase of $415
thousand or 79%. The increase reflects higher net interest income
predominantly as a result of the Bank's substantial commercial loan growth,
increased fees from service charges and gains from the sale of SBA loans.

For the quarter ended March 31, 2013, net interest income increased $1.4
million or 28% to $6.2 million compared to $4.8 million for the quarter ended
March 31, 2012. The net interest margin also increased during this same period
by 10 basis points to 3.78% compared to 3.68% for the prior year quarter. The
increase in net interest income and margin was primarily due to (1) growth in
the commercial and residential loan portfolios; (2) an increase in
non-interest bearing demand deposits; and (3) continued decline in overall
costs of funds on deposits.

Non-Interest Income
Non-interest income increased $289 thousand or 44% to $939 thousand for the
quarter ended March 31, 2013 compared to $650 thousand for the prior year
period. The increase in non-interest income was attributable to higher gains
from the sale of SBA loans, service charges, loan fees and servicing income.

Non-Interest Expense
Non-interest expense increased $769 thousand or 18% to $4.9 million for the
quarter ended March 31, 2013 compared to $4.2 million for the same period in
2012. The increase was primarily attributable to higher compensation and
occupancy costs associated with our New York City branch location, which
opened in June 2012, the hiring of additional personnel in human resources and
operations and rent expense for our new corporate headquarters in Melville. 

Balance Sheet and Asset Quality
Total assets grew to $705.5 million at March 31, 2013, a 20% increase compared
to total assets of $587.2 million at March 31, 2012. Total loans increased
$118 million or 28% to $542.6 million at March 31, 2013 when compared to March
31, 2012. The commercial loan portfolio increased $98.2 million or 35% when
compared to March 31, 2012. The residential loan portfolio increased $19.6
million or 13% when compared to March 31, 2012. Loans were funded by deposits
from two new branch locations and the continued development of core banking
relationships, which was evident by the $53.4 million rise in demand deposits
since March 31, 2012.

Our asset quality remains strong and is a core focus of management during
these uncertain economic times. Non-performing loans, consisting of loans past
due 90 days or more, decreased by $0.3 million or 25% to $1.0 million or 0.19%
of total loans at March 31, 2013 from $1.3 million or 0.32% at March 31, 2012.

The Bank had $0.6 million in provision for loan losses for the first quarter
of 2013. The increase in the provision for loan losses from $0.4 million for
the prior year quarter was mostly attributable to general valuation reserves
associated with the loan growth during the quarter. The allowance for loan
losses was $7.2 million or 1.33% of total loans at March 31, 2013, an increase
of $2.0 million from $5.2 million or 1.23% of total loans at March 31, 2012.

Deposits
Total deposits increased $113.0 million or 24% to $588.0 million at March 31,
2013 compared to $475.0 million at March 31, 2012. Demand deposits grew $53.4
million or 49% to $162.0 million at March 31, 2013 when compared to March 31,
2012.

Further information about the financial condition and performance of Community
National Bank is available from its Call Reports filed by the Bank with the
FDIC and available on the FDIC website at:
http://www2.fdic.gov/idasp/main_bankfind.asp. The Bank expects to file its
March 31, 2013 Call Report on or around April 30, 2013.

ABOUT COMMUNITY NATIONAL BANK
Community National Bank is a Long Island based independent commercial bank and
operates ten locations in Nassau, Suffolk, Queens and Manhattan County. We
offer a full range of modern financial services, backed by state-of-the-art
technology. In addition to commercial loans, commercial mortgages, small
business loans and lines of credit and residential mortgages, CNB also
provides a complete selection of traditional personal and commercial deposit
products such as no fee individual and business checking accounts, IRA
accounts and statement savings.

Cautionary Statement about Forward-Looking Statements

This release contains certain "forward looking statements" about CNB which, to
the extent applicable, are intended to be covered by the safe harbor for
forward looking statements provided under the Federal securities laws and,
regardless of such coverage, you are cautioned about. Examples of
forward-looking statements include but are not limited to, CNB's financial
condition, capital ratios, results of operations and outlook. Forward-looking
statements are not historical facts. Such statements may be identified by the
use of such words as "may," "believe," "expect," "anticipate," "plan,"
"continue," or similar terminology. These statements relate to future events
or our future financial performance and involve risks and uncertainties that
may cause our actual results, levels of activity, performance or achievements
to differ materially from those expressed or implied by these forward-looking
statements. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we caution you not to place undue
reliance on these forward-looking statements. Factors which may cause our
forward looking statements to be materially inaccurate include, but are not
limited to, a unexpected deterioration in our loan portfolio, unexpected
increases in our expenses, greater than anticipated growth, unanticipated
regulatory action, unexpected changes in interest rates, a loss of key
personnel, an unanticipated loss of existing customers, competition from other
institutions causing us unanticipated changes in our deposit or loan rates,
increases in FDIC insurance costs and unanticipated adverse changes in our
customers' economic conditions or economic conditions in our local area
generally. Forward-looking statements speak only as of the date of this press
release We do not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.



COMMUNITY NATIONAL BANK
STATEMENTS OF INCOME
(Unaudited)
                                            For The Three Months Ended
                                            March 31,  December 31, March 31,
                                            2013       2012         2012
Interest Income:
Commercial Loans                            $4,872,995 $4,503,513   $3,740,684
Residential and Consumer Loans              1,647,870  1,626,252    1,628,761
Securities                                  541,085    541,214      584,850
Money Market Investments                    9,715      23,148       7,079
 Total Interest Income                    7,071,665  6,694,127    5,961,374
Interest Expense:
NOW, Savings & Money Market                 204,820    229,149      203,681
Certificates of Deposit                     577,432    649,781      810,241
Borrowed Funds                              133,008    125,485      156,470
 Total Interest Expense                   915,260    1,004,415    1,170,392
 Net Interest Income                   6,156,405  5,689,712    4,790,982
Provision For Loan Losses                   620,000    800,000      443,000
Net Interest Income After Provision for     5,536,405  4,889,712    4,347,982
Loan Losses
Non-Interest Income:
Service Charges                             246,820    189,246      142,018
Servicing and Other Income                  155,221    99,005       93,453
Gain on Sale of Investments                 29,439     6,788        132,576
Gain on Sale of Loans                       346,460    289,091      120,681
Bank Owned Life Insurance ("BOLI")          158,119    196,659      161,262
 Total Non-Interest Income                936,059    780,789      649,990
Non-Interest Expense:
Compensation and Benefits                   2,548,069  2,380,164    2,158,476
Occupancy and Equipment                     1,302,557  1,141,651    1,071,253
Advertising                                 41,263     59,419       47,025
Other Expenses                              1,073,984  1,039,938    919,930
 Total Non-Interest Expense               4,965,873  4,621,172    4,196,684
Income Before Income Taxes                  1,506,591  1,049,329    801,288
Provision For Income Taxes                  564,002    356,929      274,200
 Net Income                            $942,589   $692,400     $527,088
Earnings Per Share:
 Basic                                    $0.14      $0.10        $0.08
 Weighted Average Shares Outstanding -    6,673,181  6,673,181    6,673,181
Basic
 Diluted                                  $0.14      $0.10        $0.08
 Weighted Average Shares Outstanding -    6,745,079  6,701,691    6,684,369
Diluted







COMMUNITY NATIONAL BANK
STATEMENTS OF CONDITION
(Unaudited)
                                        March 31,    December 31, March 31,
Assets:                                 2013         2012         2012
Cash and Due From Banks                 $8,223,778   $13,453,651  $6,609,513
Money Market Investments                15,708,308   7,391,467    17,729,766
Securities - Available-for-Sale         104,853,026  100,126,177  105,002,112
Restricted Stock                        4,603,950    3,904,850    4,032,100
 Total Securities                     109,456,976  104,031,027  109,034,212
Commercial Loans                        374,772,120  351,587,251  276,595,897
Residential & Consumer Loans            167,837,569  160,030,011  148,265,104
Total Loans                            542,609,689  511,617,262  424,861,001
Less: Allowance For Loans Losses       (7,227,875)  (6,606,498)  (5,206,011)
 Net Loans                            535,381,814  505,010,764  419,654,990
Premises and Equipment, net             8,614,816    8,709,570    8,744,302
Bank Owned Life Insurance ("BOLI")      19,651,976   19,493,857   17,533,353
Other Assets                            8,505,838    7,693,014    7,870,560
 Total Assets                         $705,543,506 $665,783,350 $587,176,696
Liabilities and Stockholders' Equity:
Deposits:
Demand                                  $161,971,063 $155,877,268 $108,594,884
NOW, Savings & Money Market             254,477,223  233,241,844  186,308,006
Certificates of Deposit                 171,504,040  174,223,625  180,117,680
 Total Deposits                       587,952,326  563,342,737  475,020,570
FHLB Advances                           40,462,894   24,970,887   29,477,324
Due to Broker                           -            -            10,202,500
Accrued Expenses and Other Liabilities  4,731,800    5,666,170    3,580,877
 Total Liabilities                    633,147,020  593,979,794  518,281,271
Stockholders' Equity:
Common Stock, par value $5.00;
authorized
10,000,000 shares; issued 6,673,181    33,365,905   33,365,905   33,365,905
shares
Additional Paid in Capital              34,164,118   34,101,246   33,920,371
Retained Earnings                       4,397,881    3,455,292    1,131,119
Unrealized Gain on Securities           468,582      881,113      478,030
 Total Stockholders' Equity        72,396,486   71,803,556   68,895,425
 Total Liabilities and             $705,543,506 $665,783,350 $587,176,696
Stockholders' Equity





COMMUNITY NATIONAL BANK
SELECTED FINANCIAL DATA AND BALANCE SHEET COMPONENTS
(Unaudited)
SELECTED FINANCIAL DATA:                      For The Three Months Ended
                                              March 31, December 31, March 31,
Per Share:                                    2013      2012         2012
Net Income - Basic                            $0.14     $0.10        $0.08
Average Shares Outstanding - Basic            6,673,181 6,673,181    6,673,181
Net Income - Diluted                          $0.14     $0.10        $0.08
Average Shares Outstanding - Diluted          6,745,079 6,701,691    6,684,369
Book Value                                    $10.85    $10.76       $10.32
Performance:
Return on Average Total Assets                0.55%     0.42%        0.38%
Return on Average Equity                      5.24%     3.88%        3.09%
Efficiency Ratio                              70.02%    71.42%       77.13%
Yield on Average Earning Assets               4.34%     4.30%        4.58%
Yield on Average Interest Bearing Liabilities 0.81%     0.91%        1.25%
Cost of Deposits                              0.54%     0.63%        0.91%
Net Interest Spread                           3.53%     3.38%        3.33%
Net Interest Margin                           3.78%     3.65%        3.68%
                                              March 31, December 31, March 31,
Risk Based Capital:                           2013      2012         2012
Leverage Ratio                                10.42%    10.35%       11.99%
Tier 1                                        13.77%    13.85%       16.16%
Total                                         15.02%    15.10%       17.41%
Asset Quality:
Allowance for Loan Losses to Total Loans      1.33%     1.29%        1.23%
Allowance for Loan Losses to Non-Performing   706%      456%         379%
Loans
Non-performing Loans to Total Loans           0.19%     0.28%        0.32%
Non-performing Assets to Total Assets         0.15%     0.22%        0.34%
Annualized Quarterly Net Charge-offs to       0.00%     0.08%        0.00%
Average Loans







SOURCE Community National Bank

Contact: Jay McConie, Senior Vice President, Chief Financial Officer, (516)
498-9111 Ext 1139
 
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