Commercial National Reports 22.78% Second Quarter And 33.39% First Six Months 2014 Earnings Growth

LATROBE, Pa., July 28, 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 June 30, 2014. The Company earned $1,655,000 (or $0.58 per average share outstanding) in the second quarter 2014 compared to $1,348,000 (or $0.47 per average share outstanding) in the second quarter 2013. The Company earned $3,268,000 (or $1.14 per average share outstanding) for the six-month period ended June 30, 2014 and $2,450,000 (or $0.86 per average share outstanding) for the six-month period ended June 30, 2013. The Company's annualized return on average assets and average equity were 1.66% and 12.55%, respectively, for the quarter ended June 30, 2014 compared to 1.44% and 10.30%, respectively, for the quarter ended June 30, 2013. The Company's annualized return on average assets and average equity for the six month period ended June 30, 2014 were 1.65% and 12.39%, respectively, compared to 1.30% and 9.32%, respectively, for the six month period ended June 30, 2013. Tier one risk-based, total risk-based and leverage capital ratios for June 30, 2014 were 22.04%, 22.74% and 12.87%, respectively.

President and Chief Executive Officer, Gregg E. Hunter noted, "Second quarter 2014 earnings increased $307,000, or 22.78%, while first six months earnings increased $818,000, or 33.39%. Tax equivalent net interest margin was 5.08% in 2014's first six months while the efficiency ratio was 55.83%. Net interest margin and efficiency ratio diagnostics reaffirm significant core earnings strengthening over the past five 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 present and upcoming 2015 Basel III 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.

SOURCE Commercial National Financial Corporation