Commercial National Reports September 30, 2013 Results

            Commercial National Reports September 30, 2013 Results

PR Newswire

LATROBE, Pa., Oct. 25, 2013

LATROBE, Pa., Oct. 25, 2013 /PRNewswire/ --Commercial National Financial
Corporation (OTC Markets: CNAF) (Company), parent Company of Commercial Bank &
Trust of PA, has reported results for the quarter ended September 30, 2013.
The Company earned $1,361,000 (or $0.47 per average share outstanding) in the
third quarter 2013 compared to $1,074,000 (or $0.38 per average share
outstanding) in the third quarter 2012. The Company earned $3,811,000 (or
$1.33 per average share outstanding) for the nine-month period ended September
30, 2013 and $6,089,000 (or $2.13 per average share outstanding) for the
nine-month period ended September 30, 2012. The Company's annualized return on
average assets and average equity were 1.48% and 12.25%, respectively, for the
quarter ended September 30, 2013 compared to 1.16% and 7.70%, respectively,
for the quarter ended September 30, 2012. The Company's annualized return on
average assets and average equity for the nine month period ended September
30, 2013 were 1.36% and 10.20%, respectively, compared to 2.14% and 14.74%,
respectively, for the nine month period ended September 30, 2012. Tier one
risk-based, total risk-based and leverage capital ratios for September 30,
2013 were 22.10%, 22.82% and 13.05%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Third quarter
2013 earnings of $1,361,000 represented a $287,000, or 26.72%, increase above
the $1,074,000 in earnings produced during 2012's third quarter. Comparative
earnings for the first nine months of 2013 reflect the $3,317,000 in net
realized securities gains generated during 2012's first nine months. The
Company's strong core profitability, ample regulatory capital adequacy,
exceptional asset quality and uncommon tax efficiency continue to greatly
surpass prevailing banking industry standards and all solidly support the
regular $0.26 per share common stock quarterly cash dividend payments to our
shareholders."

In addition to Latrobe, Pennsylvania where it is headquartered, the Company
operates ten 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, except per share data)
                                     September 30, December 31, September 30,
                                     2013          2012         2012
ASSETS
                                     $       $       $      
Cash and due from banks on demand       8,169               6,729
                                                   6,468
Interest bearing deposits with       114           32,113       56,320
banks
    Total cash and cash equivalents  8,283         38,581       63,049
Securities available for sale        176,814       141,321      117,540
Restricted investments in bank       893           2,506        2,884
stock
Loans                                162,882       168,886      170,332
    Allowance for loan losses        (1,597)       (1,649)      (1,652)
           Net loans                 161,285       167,237      168,680
Premises and equipment               3,163         3,136        3,146
Investment in Life Insurance         16,924        16,562       16,387
Other assets                         13,491        3,719        4,320
    Total assets                     $       $       $      
                                     380,853        373,062  376,006
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities:
    Deposits:
           Non-interest bearing      $       $       $      
                                     102,711        103,437    99,738
           Interest bearing          207,971       213,020      216,305
           Total deposits            310,682       316,457      316,043
    Short-term borrowings            16,300        -            -
    Other liabilities               8,588         3,839        4,077
           Total liabilities         335,570       320,296      320,120
Shareholders' equity:
    Common stock, par value $2 per
    share; 10,000,000 shares
    authorized; 3,600,000 shares
    issued; 2,860,953 shares         7,200         7,200        7,200
    outstanding in 2013 and 2012
    Retained earnings                54,183        52,604       55,032
    Accumulated other comprehensive  (3,556)       5,506        6,198
    income
    Less treasury stock, at cost,    (12,544)      (12,544)     (12,544)
    739,047 shares in 2013 and 2012
           Total shareholders'       45,283        52,766       55,886
           equity
           Total liabilities and     $       $       $      
           shareholders' equity      380,853        373,062  376,006



COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
                     Three Months                  Nine Months
                     Ended September 30            Ended September 30
                     2013           2012           2013           2012
                     (unaudited)    (unaudited)    (unaudited)    (unaudited)
INTEREST INCOME:
 Interest and fees   $         $         $         $     
 on loans            1,858         2,243         5,941         6,954
 Interest and
 dividends on
 securities:
    Taxable          298            534            1,105          2,269
    Exempt from
    federal income   1,535          849            3,849          2,695
    taxes
 Other               4              28             30             68
 Total Interest      3,695          3,654          10,925         11,986
 income
INTEREST EXPENSE:
 Interest on         179            277            620            924
 deposits
 Interest on
 short-term          3              -              3              16
 borrowings
 Interest on
 long-term           -              -              -              1
 borrowings
 Total Interest      182            277            623            941
 expense
NET INTEREST INCOME  3,513          3,377          10,302         11,045
PROVISION FOR LOAN   -              -              -              -
LOSSES
NET INTEREST INCOME
AFTER
PROVISION FOR LOAN   3,513          3,377          10,302         11,045
LOSSES
OTHER OPERATING
INCOME:
 Asset management    241            232            724            706
 and trust income
 Service charges on  268            273            784            818
 deposit accounts
 Net Security gains  (5)            122            52             3,317
 Income from
 investment in life  127            125            362            366
 insurance
 Other income        74             45             225            198
 Total other         705            797            2,147          5,405
 operating income
OTHER OPERATING
EXPENSES:
 Salaries and        1,702          1,567          5,079          4,782
 employee benefits
 Net occupancy       210            188            641            616
 expense
 Furniture and       58             81             286            266
 equipment
 Pennsylvania        141            125            417            377
 shares tax
 Legal and           72             84             198            247
 professional
 FDIC insurance     45             48             133            144
 expense
 Other expenses      762            949            2,059          2,361
 Total other         2,990          3,042          8,813          8,793
 operating expenses
INCOME BEFORE        1,228          1,132          3,636          7,657
INCOME TAXES
Income tax expense   (133)          58             (175)          1,568
(benefit)
 Net income          $         $         $         $     
                     1,361         1,074         3,811         6,089
Average Shares       2,860,953      2,860,953      2,860,953      2,860,953
Outstanding
Earnings Per Share   $        $        $        $     
                     0.47          0.38          1.33           2.13



SOURCE Commercial National Financial Corporation

Website: http://www.cbthebank.com
Contact: Wendy S. Schmucker, Senior Vice President, Secretary and Treasurer,
724-537-9923
 
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