Commercial National Reports March 31, 2017 Core Earnings Improvement

LATROBE, Pa., April 27, 2017 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended March 31, 2017. The Company earned $1,014,000 (or $0.35 per average share outstanding) in the first quarter 2017 compared to $1,246,000 (or $0.44 per average share outstanding) in the first quarter of 2016 which included $469,000 in realized net securities gains. No realized net securities gains were generated during 2017's first quarter. First quarter 2017 earnings represent a $259,000, or 34.31% improvement over the $755,000 in earnings produced during the fourth quarter of 2016. This sequential quarter core earnings improvement was due to earning asset growth and successful new operating expense control efficiencies.

The Company's annualized return on average assets and average equity for the quarter ended March 31, 2017 were 1.07% and 7.29%, respectively, compared to 1.26% and 8.84%, respectively, for the quarter ended March 31, 2016. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for March 31, 2017 were 21.12%, 21.63%, 14.32% and 21.12%, respectively. First quarter tax equivalent net interest margin was 4.41%. No loan loss provisioning has been needed over the past thirty-seven consecutive fiscal quarters. Earning asset credit quality metrics remain outstanding relative to banking industry norms. During 2017's first quarter the Company's capital leverage was progressively improved resulting in a material strengthening of ongoing core earnings. The Company's strong capital position, supplemented by recent and reasonably anticipated core earnings, remains supportive of the regular $0.26 quarterly common stock cash dividend payments to shareholders.

As disclosed each year in the Annual Report to Shareholders, on March 31, 2017, the Company employed 100 people in full-time and part-time positions. Forty-eight (48) 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.

The Company operates nine community banking facilities in Greensburg, Hempfield Township, Latrobe, 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