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Commercial National Generates Earnings Growth of 34.99% for Third Quarter and 14.63% for First Nine Months

LATROBE, Pa., Nov. 1, 2011 /PRNewswire/ -- Commercial National Financial Corporation (NASDAQ: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended September 30, 2011. The Company earned $1,879,000 (or $.65 per average share outstanding) in 2011 compared to $1,392,000 (or $.49 per average share outstanding) in 2010. The Company earned $4,726,000 (or $1.65 per average share outstanding) for the nine-month period ended September 30, 2011 and $4,123,000 (or $1.44 per average share outstanding) for the nine-month period ended September 30, 2010. Third quarter 2011 earnings increased $487,000, or 34.99%, while first nine months 2011 earnings increased $603,000, or 14.63%.

President/Chief Executive Officer Gregg E. Hunter noted, "Core earnings have progressively strengthened throughout 2011. Asset quality remained high with 2011's third quarter being the eleventh consecutive fiscal quarter without need for any loan loss provisions or securities impairment charges. Return on average assets was 1.92% for 2011's third quarter and 1.69% for 2011's first nine months. Third quarter-end tier one risk-based, total risk-based and leverage capital ratios were 20.05%, 20.81% and 11.58%, respectively. Commercial National's strong core earnings, high asset quality and ample capital adequacy facilitated the Company's third quarter dividend action which increased the previous $0.22 regular quarterly common stock cash dividend by 18.18% to a new all-time record high of $0.26 per share. Maintaining an attractive quarterly cash dividend stream to our shareholders continues to be a top priority for the Company."

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.

COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

(Dollars in thousands)












September


September





2011


2010








ASSETS






Cash and due from banks on demand


$                      7,238


$                      7,883

Interest bearing deposits with banks


324


49


Total cash and cash equivalents


7,562


7,932








Securities available for sale


177,772


134,575

Restricted investments in bank stock


3,720


4,567








Loans



187,391


197,065


Allowance for loan losses


(1,673)


(1,686)



Net loans


185,718


195,379








Premises and equipment


3,136


3,405

Other assets


22,529


19,346









Total assets


$                  400,437


$                  365,204








LIABILITIES AND SHAREHOLDERS' EQUITY





Liabilities:







Deposits:







Non-interest bearing


$                    90,198


$                    80,454



Interest bearing


205,376


195,320



Total deposits


295,574


275,774









Short-term borrowings


36,275


28,375


Long-term borrowings


10,000


10,000


Other liabilities


7,154


4,236



Total liabilities


349,003


318,385








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


49,930


46,458


Accumulated other comprehensive income


6,848


5,705


Less treasury stock, at cost,






739,047 shares in 2011 and 2010


(12,544)


(12,544)



Total shareholders' equity


51,434


46,819










Total liabilities and shareholders' equity


$                  400,437


$                  365,204



COMMERCIAL NATIONAL FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands, except per share data)














Three Months


Nine Months




Ended September 30


Ended September 30




2011


2010


2011


2010











INTEREST INCOME:









Interest and fees on loans

$               2,670


$               2,826


$               8,053


$               8,600


Interest and dividends on securities:










Taxable

1,068


1,031


2,878


3,519



Exempt from federal income taxes

1,018


668


2,656


1,706



Other

-


-


1


2


Total Interest income

4,756


4,525


13,588


13,827











INTEREST EXPENSE:









Interest on deposits

408


566


1,368


1,849


Interest on short-term borrowings

16


35


45


112


Interest on long-term borrowings

59


59


177


177


Total Interest expense

483


660


1,590


2,138











NET INTEREST INCOME

4,273


3,865


11,998


11,689

PROVISION FOR LOAN LOSSES

-


-


-


-











NET INTEREST INCOME AFTER








PROVISION FOR LOAN LOSSES

4,273


3,865


11,998


11,689











OTHER OPERATING INCOME:









Asset management and trust income

327


280


833


709


Service charges on deposit accounts

268


294


794


864


Income from investment in life insurance

121


122


365


365


Other income

43


62


186


232


Total other operating income

759


758


2,178


2,170











OTHER OPERATING EXPENSES









Salaries and employee benefits

1,524


1,510


4,625


4,519


Net occupancy expense

218


212


632


638


Furniture and equipment

92


123


305


400


Pennsylvania shares tax

124


125


377


377


Legal and professional

84


110


306


349


FDIC Insurance expense

8


90


178


257


Other expenses

766


763


2,179


2,190


Total other operating expenses

2,816


2,933


8,602


8,730











INCOME BEFORE INCOME TAXES

2,216


1,690


5,574


5,129

Income tax expense

337


298


848


1,006












Net income

$               1,879


$               1,392


$               4,726


$               4,123











Average Shares Outstanding

2,860,953


2,860,953


2,860,953


2,860,953











Earnings Per Share

$                 0.65


$                 0.49


$                 1.65


$                 1.44



SOURCE Commercial National Financial Corporation



RELATED LINKS
http://www.cbthebank.com

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