Commercial National Posts 34.44% Fourth Quarter 2013 Earnings Growth

     Commercial National Posts 34.44% Fourth Quarter 2013 Earnings Growth

PR Newswire

LATROBE, Pa., Feb. 3, 2014

LATROBE, Pa., Feb. 3, 2014 /PRNewswire/ -- Commercial National Financial
Corporation (OTC Markets: CNAF) (Company), parent Company of Commercial Bank &
Trust of PA, has reported results for the quarter ended December 31, 2013. The
Company earned $1,581,000 (or $.55 per average share outstanding) in the
fourth quarter 2013 compared to $1,176,000 (or $.41 per average share
outstanding) in the fourth quarter 2012. The Company earned $5,392,000 (or
$1.88 per average share outstanding) for the twelve-month period ended
December 31, 2013 and $7,265,000 (or $2.54 per average share outstanding) for
the twelve-month period ended December 31, 2012 when $3,317,000 in net
realized securities gains were generated. The Company's annualized return on
average assets and average equity were 1.68% and 13.92%, respectively, for the
quarter ended December 31, 2013 compared to 1.27% and 8.53%, respectively, for
the quarter ended December 31, 2012. The Company's return on average assets
and average equity were 1.44% and 11.07%, respectively, for the twelve month
period ended December 31, 2013 compared to 1.93% and 13.19%, respectively, for
the twelve-month period ended December 31, 2012. Tier one risk-based, total
risk-based and leverage capital ratios for December 31, 2013 were 22.13%,
22.86% and 12.93%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "On a linked
sequential quarter basis, earnings significantly strengthened as 2013
progressed. In 2013, first quarter earnings were $1,102,000, second quarter
earnings were $1,348,000, third quarter earnings were $1,361,000 and fourth
quarter earnings were $1,581,000. Fourth quarter 2013 earnings represented a
$405,000, or 34.44%, increase over the earnings generated during the fourth
quarter of 2012. Comparative earnings for the full year of 2013 reflect the
$3,317,000 in net realized securities gains produced during 2012. The
Company's strong core profitability and very large capital base continue to
exceed banking industry norms, providing solid support for 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)
                                             December 31      December 31
                                             2013             2012
ASSETS
Cash and due from banks on demand            $         $       
                                                8,036        6,468
Interest bearing deposits with banks         3,999            32,113
    Total cash and cash equivalents          12,035           38,581
Securities available for sale                185,446          141,321
Restricted investments in bank stock         1,425            2,506
Loans                                        163,916          168,886
    Allowance for loan losses                (1,619)          (1,649)
             Net loans                       162,297          167,237
Premises and equipment                       3,096            3,136
Investment in Life Insurance                 17,111           16,562
Other assets                                 12,924           3,719
    Total assets                             $         $       
                                              394,334        373,062
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
    Deposits:
             Non-interest bearing            $         $       
                                              104,792        103,437
             Interest bearing                211,769          213,020
             Total deposits                  316,561          316,457
    Short-term borrowings                    23,311           -
    Long-term borrowings                     -                -
    Other liabilities                        8,325            3,839
             Total liabilities               348,197          320,296
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 2013 and 2012.            7,200            7,200
    Retained earnings                        55,020           52,604
    Accumulated other comprehensive          (3,539)          5,506
    income
    Less treasury stock, at cost,
    739,047 shares in 2013 and 2012          (12,544)         (12,544)
             Total shareholders' equity      46,137           52,766
             Total liabilities and           $         $       
             shareholders' equity             394,334        373,062





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
                         2013           2012         2013         2012
INTEREST INCOME:
 Interest and fees on    $        $       $       $     
 loans                    1,847          2,122      7,788      9,076
 Interest and dividends
 on securities:
     Taxable             263            476          1,368        2,745
     Exempt from
     federal income      1,649          852          5,498        3,547
     taxes
     Other               5              32           35           100
 Total Interest income   3,764          3,482        14,689       15,468
INTEREST EXPENSE:
 Interest on deposits    168            246          788          1,170
 Interest on short-term  10             -            13           16
 borrowings
 Interest on long-term   -              -            -            1
 borrowings
 Total Interest expense  178            246          801          1,187
NET INTEREST INCOME      3,586          3,236        13,888       14,281
PROVISION FOR LOAN       -              -            -            -
LOSSES
NET INTEREST INCOME
AFTER
PROVISION FOR LOAN       3,586          3,236        13,888       14,281
LOSSES
OTHER OPERATING INCOME:
 Asset management and    257            233          981          939
 trust income
 Service charges on      255            284          1,039        1,102
 deposit accounts
 Net Security gains      (1)            -            51           3,317
 (loss)
 Income from investment  146            134          508          500
 in life insurance
 Other income            40             39           265          237
 Total other operating   697            690          2,844        6,095
 income
OTHER OPERATING
EXPENSES
 Salaries and employee   1,748          1,589        6,827        6,371
 benefits
 Net occupancy expense   202            213          843          829
 Furniture and           128            161          465          427
 equipment
 Pennsylvania shares     138            133          552          510
 tax
 Legal and professional  79             105          277          352
 FDIC Insurance expense  48             48           181          192
 Other expenses          607            418          2,618        2,779
 Total other operating   2,950          2,667        11,763       11,460
 expenses
INCOME BEFORE INCOME     1,333          1,259        4,969        8,916
TAXES
Income tax expense       (248)          83           (423)        1,651
(benefit)
 Net income              $        $       $       $     
                          1,581          1,176      5,392      7,265
Average Shares           2,860,953      2,860,953    2,860,953    2,860,953
Outstanding
Earnings Per Share       $        $       $       $     
                           0.55          0.41      1.88      2.54





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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