Commercial National Achieves Record Headline and Core Earnings for 2010

LATROBE, Pa., Feb. 9, 2011 /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, 2010. The Company earned $5,501,000 (or $1.92 per average share outstanding) compared to $5,129,000 (or $1.79 per average share outstanding) in 2009. Earnings for the fourth quarter of 2010 were $1,378,000 (or $.48 per average share outstanding) compared to $1,533,000 (or $.54 per average share outstanding) for the same period in 2009.

Gregg E. Hunter, President and Chief Executive Officer noted, "Year-end 2010 post-tax net income increased $372,000, or 7.25%, to $5,501,000.  This earnings achievement for 2010 represents all-time record headline and core earnings for the Company following the previous record core earnings generated in 2009.  Recent sequential year-end post-tax net income results for the Company were $5,129,000 in 2009, $4,024,000 in 2008 and $3,065,000 in 2007.  The solid earnings results that have been produced throughout 2010, 2009, 2008 and 2007 were solely core earnings devoid of any material non-recurring income-enhancing items."

Mr. Hunter added, "The improved earnings of 2010 were attributable to well-above industry standard net interest margin and earning asset credit quality strength, the successful maintenance of a marginal leverage carry trade position, vastly improved tax efficiency as an ancillary benefit of that position, lessened funding reliance on interest rate sensitive non-core liabilities, proportionate and absolute growth in book capital and meaningful growth in the most valuable less interest rate sensitive core deposit categories.  All of the aforementioned has enabled the Company to fortify its capital base exclusively via non-dilutive retained earnings. Capital has been materially strengthened in this manner over the past several years. The Company remains well-positioned to successfully weather uncertain economic times and to maintain its very attractive quarterly cash dividend payments to its common stock shareholders."

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.

SOURCE Commercial National Financial Corporation