2014

Commercial National Achieves 22.1% Full Year and 44.3% Fourth Quarter Core Earnings Growth for 2011

LATROBE, Pa., Feb. 7, 2012 /PRNewswire/ -- Commercial National Financial Corporation (NASDAQ: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the year ended December 31, 2011. The Company earned $6,715,000 (or $2.35 per average share outstanding) compared to $5,501,000 (or $1.92 per average share outstanding) in 2010. Earnings for the fourth quarter of 2011 were $1,989,000 (or $.70 per average share outstanding) compared to $1,378,000 (or $.48 per average share outstanding) for the same period in 2010. Full year earnings increased $1,214,000, or 22.1%, while fourth quarter earnings increased $611,000, or 44.3%.

Gregg E. Hunter, President and Chief Executive Officer noted, "Core earnings progressively strengthened throughout 2011 on a linked-quarter basis and in comparison to the quarterly results of 2010.  The Company's above banking industry standard financial performance remains firmly based upon strong asset quality, very high tax-equivalent net interest margin and ample capital adequacy in conjunction with the complimentary balanced optionalities and proportional volumes of the Company's various assets and liabilities.  Through hard work, constant vigilance and measured risk management our Company continued to derive maximum benefit from pronounced yield curve slope during all of 2011.  The Company begins 2012 exceedingly well-positioned for comparative earnings success."

Mr. Hunter added, "The Company's superior core financial performance and strong capital base continue to solidly support very attractive and reliable quarterly cash dividend payments to the Company's common stock shareholders. Maintaining a meaningful quarterly cash dividend stream to our shareholders remains a top priority for the Company. High cash dividends and high dividend yields also provide solid support for Commercial National's very favorable common stock market share price valuations."

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates community-banking facilities in Greensburg, Hempfield Township, Ligonier, North Huntingdon, 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.cbthebank.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. The review period for subsequent events extends up to and including the filing date of a public company's consolidated financial statements when filed with the Securities and Exchange Commission ("SEC"). Accordingly, the financial information in this announcement is subject to change.

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

(Dollars in thousands)












December 31


December 31





2011


2010








ASSETS






Cash and due from banks on demand


$         6,275


$         5,578

Interest bearing deposits with banks


185


16


Total cash and cash equivalents


6,460


5,594








Securities available for sale


189,898


131,159

Restricted investments in bank stock


3,534


4,339








Loans



179,386


191,906


Allowance for loan losses


(1,673)


(1,686)



Net loans


177,713


190,220








Premises and equipment


3,085


3,323

Other assets


20,356


20,842









Total assets


$     401,046


$     355,477








LIABILITIES AND SHAREHOLDERS' EQUITY





Liabilities:







Deposits:







Non-interest bearing


$       89,690


$       77,209



Interest bearing


214,126


199,285



Total deposits


303,816


276,494









Short-term borrowings


29,450


17,700


Long-term borrowings


10,000


10,000


Other liabilities


5,231


5,271



Total liabilities


348,497


309,465








Shareholders' equity:






Common stock, par value $2 per share;






10,000,000 shares authorized; 3,600,000 shares






issued; 2,860,953 shares






outstanding in 2011 and 2010.


7,200


7,200
















Retained earnings


51,175


47,207









Accumulated other comprehensive income


6,718


4,149









Less treasury stock, at cost,






739,047 shares in 2011 and 2010


(12,544)


(12,544)



Total shareholders' equity


52,549


46,012










Total liabilities and shareholders' equity


$     401,046


$     355,477



COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)
















Three Months


Twelve Months





Ended December 31


Ended December 31





2011


2010


2011


2010












INTEREST INCOME:










Interest and fees on loans


$      2,546


$      2,768


$    10,599


$    11,368


Interest and dividends on securities:











Taxable


1,274


955


4,152


4,474



Exempt from federal income taxes


1,017


667


3,673


2,373



Other


-


-


1


2


Total Interest income


4,837


4,390


18,425


18,217












INTEREST EXPENSE:










Interest on deposits


366


517


1,734


2,366


Interest on short-term borrowings


14


27


59


139


Interest on long-term borrowings


60


60


237


237


Total Interest expense


440


604


2,030


2,742












NET INTEREST INCOME


4,397


3,786


16,395


15,475

PROVISION FOR LOAN LOSSES


-


-


-


-












NET INTEREST INCOME AFTER









PROVISION FOR LOAN LOSSES


4,397


3,786


16,395


15,475












OTHER OPERATING INCOME:










Asset management and trust income


236


238


1,069


947


Service charges on deposit accounts


261


272


1,055


1,136


Income from investment in life insurance


143


143


508


508


Other income


50


85


236


317


Total other operating income


690


738


2,868


2,908












OTHER OPERATING EXPENSES










Salaries and employee benefits


1,507


1,551


6,132


6,070


Net occupancy expense


196


199


828


837


Furniture and equipment


95


137


400


537


Pennsylvania shares tax


126


124


503


501


Legal and professional


75


83


381


432


FDIC Insurance expense


47


86


225


343


Other expenses


641


668


2,820


2,858


Total other operating expenses


2,687


2,848


11,289


11,578












INCOME BEFORE INCOME TAXES


2,400


1,676


7,974


6,805

Income tax expense


411


298


1,259


1,304













Net income


$      1,989


$      1,378


$      6,715


$      5,501












Average Shares Outstanding


2,860,953


2,860,953


2,860,953


2,860,953












Earnings Per Share


$        0.70


$        0.48


$        2.35


$        1.92



SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cbthebank.com

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