Commercial National Reports September 30, 2015 Earnings

LATROBE, Pa., Nov. 4, 2015 /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, 2015. The Company earned $628,000 (or $0.22 per average share outstanding) in the third quarter 2015 compared to $1,534,000 (or $0.54 per average share outstanding) in the third quarter 2014. The Company earned $4,615,000 (or $1.61 per average share outstanding) for the nine-month period ended September 30, 2015 and $4,802,000 (or $1.68 per average share outstanding) for the nine-month period ended September 30, 2014. The Company's annualized return on average assets and average equity were 0.65% and 4.71%, respectively, for the quarter ended September 30, 2015 compared to 1.54% and 11.63%, respectively, for the quarter ended September 30, 2014. The Company's annualized return on average assets and average equity for the nine month period ended September 30, 2015 were 1.61% and 10.94%, respectively, compared to 1.62% and 12.27%, respectively, for the nine month period ended September 30, 2014. Third quarter book earnings reflect a non-cash $368,000 income tax valuation adjustment which was accompanied by a $341,000 income tax cash refund resulting from the carry-back of a 2014 book tax position asset against the 2012 fiscal year filed tax return. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for September 30, 2015 were 21.78%, 22.45%, 13.53% and 21.78%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "The community banking franchise has recorded steady expansion since year-end 2014 as demonstrated by non-interest bearing checking deposit footings growth of 7.18% and loan portfolio growth of 7.46%. The Company's atypical funding base, with non-interest bearing checking deposits of $113.3 million relative to $393.5 million in total assets, compliments the aggregate optionality of total earning assets. Loan portfolio credit quality remains outstanding with 2015's third quarter representing the thirty-first consecutive fiscal quarter without the need for any loan loss provisioning – a time span of nearly eight years. Core earnings, as evidenced by FDIC tabulated net interest margins of 4.57% for 2015's third quarter and 4.66% for 2015's first nine months, remain favorable. In addition, on a linked sequential quarter basis actual net interest income generation has improved from $3,371,000 in 2015's first quarter to $3,471,000 in 2015's second quarter and $3,573,000 in 2015's third quarter. The Company's substantial capital position, outstanding asset quality and favorable core earnings diagnostics continue to be supportive of the regular $0.26 per share quarterly common stock cash dividend payments to our shareholders. Maintaining an attractive and reliable cash dividend income stream to our shareholders is a top priority for the Company."

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