Commercial National Reports December 31, 2015 Earnings

LATROBE, Pa., Jan. 29, 2016 /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, 2015. The Company earned $1,073,000 (or $0.38 per average share outstanding) in the fourth quarter 2015 compared to $1,410,000 (or $0.49 per average share outstanding) in the fourth quarter 2014. The Company earned $5,688,000 (or $1.99 per average share outstanding) for the twelve-month period ended December 31, 2015 and $6,210,000 (or $2.17 per average share outstanding) for the twelve-month period ended December 31, 2014. The Company's annualized return on average assets and average equity were 1.09% and 7.70%, respectively, for the quarter ended December 31, 2015 compared to 1.45% and 9.81%, respectively, for the quarter ended December 31, 2014. The Company's annualized return on average assets and average equity for the twelve-month period ended December 31, 2015 were 1.48% and 10.23%, respectively, compared to 1.58% and 11.61%, respectively, for the twelve-month period ended December 31, 2014. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for December 31, 2015 were 21.96%, 22.63%, 13.42% and 21.96%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Core earnings, as evidenced by FDIC tabulated net interest margins of 4.59% for 2015's fourth quarter and 4.64% for full year 2015, remain strong.  On a linked sequential quarter basis actual net interest income generation substantially improved throughout 2015 from $3,371,000 in the first quarter to $3,611,000 in the fourth quarter.  Asset quality continues to be outstanding with 2015 representing the eighth consecutive year without any need for loan loss provisioning – a time span that encompassed the worst depths of the financial crisis driven Great Recession. The Company's underlying core earnings in conjunction with its solid capital base provide ample capacity to maintain the regular $0.26 per share quarterly common stock cash dividend to shareholders. The special extra dividend of $1.00 per share which was paid in May 2015 was based on atypically favorable multi-year results being supplemented by sizeable current year realized net securities sale related gains in much the same manner as the previous $1.00 per share special cash dividend of December 2012.  Providing an attractive and reliable cash dividend income stream to all our shareholders through the safe and sound operation of this bank is a long-standing top priority for the Company. In this regard, Commercial National Financial Corporation's actions over an extended number of years stand as concrete testament to its delivering on that priority."

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.

As disclosed each year in the Annual Report to Shareholders, on December 31, 2015, the Company employed 110 people in full-time and part-time positions. Fifty-six (56) employees are represented by the United Auto Workers, Local 1799. The Company has had unionized employees since 1972.  In 2013, the Company and the bargaining unit entered into a labor agreement that will expire in February 2019. The Commonwealth of Pennsylvania and the National Labor Relations Board both afford protection to the organized status of pre-existing collective bargaining units. The Company has been advised that bargaining unit status may limit the Company's strategic options relative to those of non-unionized insured depository institutions. The Company continues to consider this as a factor in its strategic and capital management decisions.

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.

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SOURCE Commercial National Financial Corporation