Commercial National Reports 46.37% First Quarter 2014 Earnings Increase

   Commercial National Reports 46.37% First Quarter 2014 Earnings Increase

PR Newswire

LATROBE, Pa., April 29, 2014

LATROBE, Pa., April 29, 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 March 31, 2014. The
Company earned $1,613,000 (or $.56 per average share outstanding) in the first
quarter 2014 compared to $1,102,000 (or $.39 per average share outstanding) in
the first quarter 2013. The Company's annualized return on average assets and
average equity were 1.63% and 13.32%, respectively, for the quarter ended
March 31, 2014 compared to 1.17% and 8.35%, respectively, for the quarter
ended March 31, 2013. Tier one risk-based, total risk-based and leverage
capital ratios for March 31, 2014 were 21.80%, 22.50% and 12.60%,
respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "First quarter
2014 earnings increased $511,000, or 46.37%. Tax equivalent net interest
margin was 5.07% in 2014's first quarter in comparison to 4.52% in the first
quarter of 2013. The 56.42% efficiency ratio of 2014's first quarter was
notably improved from 63.99% in 2013's first quarter. Net interest margin and
efficiency ratio trends confirm significant core earnings strengthening over
the past four fiscal quarters. Successful tax position optimization and very
high asset quality have also materially contributed to overall profitability.
Capital adequacy remains well in excess of both current and future regulatory
requirements. The Company's strong underlying core profitability in
conjunction with its substantial capital base continue to surpass those of the
broader banking industry and provide ample capacity to support the regular
$0.26 per share quarterly common stock cash dividend payments to
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)
                             March 31,        December 31      March 31,
                             2014             2013             2013
ASSETS
Cash and due from banks on   $         $         $       
demand                          6,385        8,036        4,229
Interest bearing deposits    91               3,999            21,844
with banks
 Cash and Cash Equivalents   6,476            12,035           26,073
Securities available for     195,642          185,446          160,701
sale
Restricted investments in    1,709            1,425            2,138
bank stock
Loans                        168,631          163,916          166,424
 Allowance for loan losses   (1,620)          (1,619)          (1,644)
   Net loans                 167,011          162,297          164,780
Premises and equipment       3,173            3,096            3,136
Investment in life           17,226           17,111           16,676
insurance
Other assets                 4,864            12,924           4,165
 Total assets                $         $         $       
                              396,101        394,334        377,669
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities
 Deposits
   Non-interest bearing      $         $         $       
                              106,795        104,792        106,941
   Interest bearing          212,754          211,769          215,591
   Total deposits            319,549          316,561          322,532
 Short-term borrowings       25,425           23,311           -
 Other liabilities           688              8,325            2,700
   Total liabilities         345,662          348,197          325,232
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 2014 and   7,200            7,200            7,200
   2013
 Retained earnings           55,889           55,020           52,962
 Accumulated other           (106)            (3,539)          4,819
 comprehensive income
 Treasury stock, at cost,
 739,047 shares
   in 2014 and 2013         (12,544)         (12,544)         (12,544)
   Total shareholders'       50,439           46,137           52,437
   equity
   Total liabilities and     $         $         $       
   shareholders' equity       396,101        394,334        377,669





COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
                                Three Months Ended      Three Months Ended
                                March 31,               March 31,
                                2014                    2013
INTEREST INCOME
 Interest and fees on loans     $             $          
                                  1,895                2,082
 Interest and dividends on
 securities:
      Taxable                   238                     446
      Exempt from federal       1,775                   1,000
      income taxes
      Other                     9                       16
 Total Interest income          3,917                   3,544
INTEREST EXPENSE
 Interest on deposits           155                     226
 Interest on short term         21                      -
 borrowings
 Interest on long term          -                       -
 borrowings
 Total Interest expense         176                     226
NET INTEREST INCOME             3,741                   3,318
PROVISION FOR LOAN LOSSES       -                       -
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES       3,741                   3,318
OTHER OPERATING INCOME
 Asset management and trust     277                     237
 income
 Service charges on deposit     236                     255
 accounts
 Net Security losses            (7)                     -
 Income from investment in life 114                     114
 insurance
 Other income                   103                     99
 Total other operating income   723                     705
OTHER OPERATING EXPENSES
 Salaries and employee benefits 1,807                   1,712
 Net occupancy expense          229                     225
 Furniture and equipment        101                     103
 Pennsylvania shares tax        100                     138
 Legal and professional         84                      63
 FDIC Insurance                 48                      44
 Other expenses                 663                     658
 Total other operating expenses 3,032                   2,943
INCOME BEFORE INCOME TAXES      1,432                   1,080
Income tax ( benefit) expense   (181)                   (22)
 Net income                     $             $          
                                  1,613                1,102
Average Shares Outstanding      2,860,953               2,860,953
Earnings Per Share              $             $          
                                   0.56                0.39





SOURCE Commercial National Financial Corporation

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