Commercial National Reports Record Earnings For 2012

LATROBE, Pa., Feb. 4, 2013 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets:CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended December 31, 2012. The Company earned $1,176,000 (or $.41 per average share outstanding) in the fourth quarter 2012 compared to $1,989,000 (or $.70 per average share outstanding) in the fourth quarter 2011. The Company earned $7,265,000 (or $2.54 per average share outstanding) for the twelve-month period ended December 31, 2012 and $6,715,000 (or $2.35 per average share outstanding) for the twelve-month period ended December 31, 2011. The Company's annualized return on average assets and average equity were 1.27% and 8.53%, respectively, for the quarter ended December 31, 2012 compared to 2.00% and 15.56%, respectively, for the quarter ended December 31, 2011. The Company's annualized return on average assets and average equity were 1.93% and 13.19%, respectively, for the twelve month period ended December 31, 2012 compared to 1.77% and 13.84%, respectively, for the twelve-month period ended December 31, 2011.

President and Chief Executive Officer, Gregg E. Hunter noted, "Year-end 2012 post-tax net income rose to $7,265,000. This earnings result for 2012 signifies yet another record earnings achievement for the Company.  Recent sequential earnings results for the Company were $6,715,000 in 2011, $5,501,000 in 2010, $5,129,000 in 2009, $4,024,000 in 2008 and $3,065,000 in 2007. During the second half of 2011 an expansion of high-yield municipal bond leverage materially influenced earnings for that time period.  During the first quarter of 2012 that leverage position was extensively reduced inducing an earnings and equity capture of considerable magnitude which profoundly shaped individual quarterly and full year results for 2012.  In the aftermath of this deleveraging, the Company's core earnings continue to be driven by outstanding earning asset credit quality, strong net interest margin, effective overhead cost containment and exceptional tax efficiency. The Company's capital adequacy continues to vastly surpass both present and proposed regulatory standards even after December 2012's special $1.00 per share cash dividend to all the Company's common stock shareholders."

Mr. Hunter added, "The special $1.00 per share cash dividend was only made possible by the broad discretionary latitude afforded by the Company's exemplary financial condition and financial performance which have been successfully maintained over a multi-year period of unprecedented banking industry turmoil. The Company begins 2013 in a position of considerable financial strength and that strength will be preserved through strict adherence to disciplined underwriting and investment practices. This strength will be augmented by balanced operational controls so that potential opportunities may be fully seized upon and exploited to buttress 2013's financial performance in a risk-balanced manner."

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