Commercial National Reports Year-End 2017 Earnings Surge

LATROBE, Pa., Jan. 30, 2018 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF)(Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended December 31, 2017. The Company earned $3,548,000 (or $1.24 per average share outstanding) in the fourth quarter 2017 compared to $760,000 (or $0.26 per average share outstanding) in the fourth quarter 2016. The Company earned $6,866,000 (or $2.40 per average share outstanding) for the twelve-month period ended December 31, 2017 and $4,040,000 (or $1.41 per average share outstanding) for the twelve-month period ended December 31, 2016.

Fourth quarter 2017 earnings increased $2,788,000, or 366.84%, from 2016's fourth quarter and full-year 2017 earnings increased $2,826,000, or 69.95%, from 2016's full year. Fourth quarter and full-year 2017 earnings reflect a $2,504,000 earnings and capital benefit that was recorded due to a $1,903,000 deferred tax asset recapture and a $601,000 AFS/MTM deferred tax liability adjustment both of which primarily stemmed from the Company's well-proven securities portfolio investment activities.

The Company's annualized return on average assets and average equity for the quarter ended December 31, 2017 were 3.61% and 23.99%, respectively, compared to 0.83% and 5.28%, respectively, for the quarter ended December 31, 2016. The Company's annualized return on average assets and average equity for the twelve-month period ended December 31, 2017 were 1.70% and 11.89%, respectively, compared to 1.08% and 7.00%, respectively, for the twelve-month period ended December 31, 2016. Fourth quarter tax equivalent net interest margin was 4.35%. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for December 31, 2017 were 22.76%, 23.28%, 14.07% and 22.76%, respectively. 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.

A special extra cash dividend of $0.26 per share was declared and paid during December 2017. As a result, total cash dividends paid in 2017 rose from $1.04 to $1.30 per share which represented a 25% increase over total cash dividends paid during 2016. Providing an attractive and reliable regular cash dividend income stream to all shareholders in the most equitable manner possible remains a top priority for the Company.

Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 700,192 shares, or 24.47% on December 31, 2017.

As disclosed each year in the Annual Report to Shareholders, on December 31, 2017, the Company employed 99 people in full-time and part-time positions. Forty-seven (47) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, Thirty-five (35) employees are full-time and twelve (12) employees are part-time. 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