Commercial National Posts Increased First Quarter 2011 Earnings

LATROBE, Pa., May 3, 2011 /PRNewswire/ -- Commercial National Financial Corporation (NASDAQ: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended March 31, 2011. The Company earned $1,360,000 (or $.48 per average share outstanding) in 2011 compared to $1,350,000 (or $.47 per average share outstanding) in 2010.

President and Chief Executive Officer Gregg E. Hunter noted, "First quarter 2011 return on average assets (ROA) and return on average equity (ROE) were 1.52% and 11.74%. These high levels of profitability are exclusively attributable to core earnings generation and remain far above prevailing banking industry norms. Net interest margin and earning asset credit quality remained solid during 2011's first quarter. Tax equivalent net interest margin was 5.20% and no loan loss provisions have been needed for nine consecutive fiscal quarters.  The Company's diversified funding base experienced further volume, composition and cost improvement. Overhead was tightly controlled with net operating expense recording a modest decline. Capital continues to be strengthened solely through non-dilutive earnings retention. The Company's reliable quarterly cash dividend payments remain very attractive relative to those paid by other banking institutions. At quarter-end, the Company's tier one risk-based, total risk-based and leverage capital ratios were 20.29%, 21.09% and 12.07%. This growing capital base buttresses the Company's ongoing financial condition and performance by providing the capacity to seize emerging opportunities."

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