Commercial National Reports June 30, 2015 Earnings

LATROBE, Pa., July 28, 2015 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for June 30, 2015. The Company earned $2,390,000(or $0.83 per average share outstanding) in the second quarter 2015 compared to $1,655,000 (or $0.58 per average share outstanding) in the second quarter 2014. The Company earned $3,987,000 (or $1.39 per average share outstanding) for the six-month period ended June 30, 2015 and $3,268,000 (or $1.14 per average share outstanding) for the six-month period ended June 30, 2014.

The Company's annualized return on average assets and average equity were 2.51% and 16.83%, respectively, for the quarter ended June 30, 2015 compared to 1.66% and 12.55%, respectively, for the quarter ended June 30, 2014. The Company's annualized return on average assets and average equity for the six-month period ended June 30, 2015 were 2.10% and 13.82%, respectively, compared to 1.65% and 12.39%, respectively, for the six-month period ended June 30, 2014. The Company recorded a deferred tax asset valuation allowance in the second quarter 2015, resulting in higher second quarter and six-month effective tax rates. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for June 30, 2015 were 22.00%, 22.68%, 13.85% and 22.00%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Second quarter earnings increased $735,000, or 44.41%, while six-month earnings increased $719,000, or 22.00%. Thus far in 2015 meaningful profitability enhancements have been achieved with both the loan portfolio and the deposit base. Asset quality remains exceptional relative to prevailing banking industry norms as demonstrated by no required loan loss provisioning over the past thirty consecutive fiscal quarters. In 2015 the Company's trust revenues have surged by $199,000 which represents a 35.47% improvement. Prior to 2015's late second quarter bond market sell-off, significant realized securities gains were harvested at the beginning of April in order to fully benefit from the exceedingly strong bond market price rally of 2015's first quarter. This non-recurring income materially supplemented the Company's core earnings which were greatly influenced by various timing factors related to securities portfolio activities. The Company's core earnings in conjunction with its substantial capital base provide ample capacity to maintain 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.

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SOURCE Commercial National Financial Corporation