Commercial National Achieves 2009 Earnings Per Share Growth of 26% for Third Quarter and 33% for First Nine Months

• Press Release
• Source: Commercial National Financial Corporation
• On 10:07 am EDT, Tuesday October 27, 2009

LATROBE, Pa., Oct. 27 /PRNewswire-FirstCall/ -- Commercial National Financial Corporation (Nasdaq: CNAF - News; Company), parent Company of Commercial Bank & Trust of PA, has reported earnings for the quarter ended September 30, 2009. The Company earned $1,266,000 (or $.44 per average share outstanding) in 2009 compared to $1,025,000 (or $.35 per average share outstanding) in 2008. The Company earned $3,596,000 (or $1.25 per average share outstanding) for the nine-month period ended September 30, 2009 and $2,802,000 (or $.94 per average share outstanding) for the nine-month period ended September 30, 2008. Third quarter 2009 earnings increased 24%, or $241,000, and first nine months earnings increased 28%, or $794,000. Quarterly and year-to-date earnings per share rose 26% and 33%, respectively.

President/Chief Executive Officer Gregg E. Hunter commented, "The earnings achievements of 2009 remain directly attributable to solid asset quality and successful net interest margin management relative to prevailing market conditions along with common sense operating expense cost containment in the face of extreme banking industry-wide FDIC deposit insurance fee escalation. These positive attributes provide for an expanding capital base funded exclusively from internally generated retained earnings rather than from any shareholder diluting equity issuances. This traditional approach to capital stewardship helps make possible the reliable continuance of Commercial National's very attractive quarterly cash dividend payments to its shareholders."

In addition to Latrobe, Pennsylvania where it is headquartered, the Company operates 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.

              COMMERCIAL NATIONAL FINANCIAL CORPORATION
           CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                             (Unaudited)
                       (Dollars in thousands)

                                           September  September
                                                2009       2008
                                                ----       ----

    ASSETS
    Cash and due from banks on demand         $7,491    $10,344
    Interest bearing deposits with banks           3         83
                                                  --         --
      Total cash and cash equivalents          7,494     10,427

    Federal funds sold                             -        700
    Securities available for sale            133,736    119,373
    Restricted investments in bank stock       4,567      3,873

    Loans                                    205,289    216,957
      Allowance for loan losses               (1,798)    (1,817)
                                              ------     ------
        Net loans                            203,491    215,140

    Premises and equipment                     3,453      3,545
    Other assets                              17,687     17,054
                                              ------     ------

      Total assets                          $370,428   $370,112
                                            ========   ========

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Liabilities:
      Deposits:
        Non-interest bearing                 $76,295    $73,648
        Interest bearing                     187,886    195,917
                                             -------    -------
        Total deposits                       264,181    269,565

      Short-term borrowings                   49,850     40,000
      Long term borrowings                    10,000     20,000
      Other liabilities                        3,832      2,623
                                               -----      -----
        Total liabilities                    327,863    332,188
                                             -------    -------

    Shareholders' equity:
      Common stock, par value $2 per share;
       10,000,000 shares
       authorized; 3,600,000 shares issued;
       2,860,953 and 2,890,253 shares
       outstanding in 2009 and 2008,
       respectively                            7,200      7,200


      Retained earnings                       43,320     41,028

      Accumulated other comprehensive
       income                                  4,589      1,788

      Less treasury stock, at cost,
       739,047 and 709,747 shares
       in 2009 and 2008                      (12,544)   (12,092)
                                             -------    -------
        Total shareholders' equity            42,565     37,924
                                              ------     ------

        Total liabilities and
         shareholders' equity               $370,428   $370,112
                                            ========   ========

                 COMMERCIAL NATIONAL FINANCIAL CORPORATION
                     CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)
               (Dollars in thousands, except per share data)

                                    Three Months        Nine Months
                                 Ended September 30  Ended September 30
                                     2009      2008      2009      2008
                                     ----      ----      ----      ----

    INTEREST INCOME:
      Interest and fees on
       loans                       $2,982    $3,216    $9,092    $9,867
      Interest and dividends
       on securities:
        Taxable                     1,619     1,459     5,340     4,592
        Exempt from federal
         income taxes                 229        33       275       100
        Other                           1         9         3        26
                                      ---       ---       ---       ---
      Total Interest income         4,831     4,717    14,710    14,585

    INTEREST EXPENSE:
      Interest on deposits            723     1,001     2,397     3,751
      Interest on short-term
       borrowings                      48       141       153       386
      Interest on long- term
       borrowings                     266       209       839       667
                                      ---       ---       ---       ---
      Total Interest expense        1,037     1,351     3,389     4,804
                                    -----     -----     -----     -----

    NET INTEREST INCOME             3,794     3,366    11,321     9,781
    PROVISION FOR LOAN LOSSES           -         -         -         -
                                      ---       ---       ---       ---

    NET INTEREST INCOME AFTER
    PROVISION FOR LOAN LOSSES       3,794     3,366    11,321     9,781
                                    -----     -----    ------     -----

    OTHER OPERATING INCOME:
      Asset management and
       trust income                   221       255       710       770
      Service charges on
       deposit accounts               154       164       437       472
      Other service charges
       and fees                       188       172       566       549
      Income from investment
       in life insurance              137       154       428       434
      Other income                     50        48       144       137
                                       --        --       ---       ---
      Total other operating
       income                         750       793     2,285     2,362
                                      ---       ---     -----     -----

    OTHER OPERATING EXPENSES
      Salaries and employee
       benefits                     1,424     1,407     4,255     4,271
      Net occupancy expense           220       181       629       562
      Furniture and equipment         113       133       366       403
      Pennsylvania shares tax         126       132       382       398
      Legal and professional          104       115       348       357
      FDIC Insurance expense           90        11       362        25
      Other expenses                  752       736     2,245     2,221
                                      ---       ---     -----     -----
      Total other operating
       expenses                     2,829     2,715     8,587     8,237
                                    -----     -----     -----     -----

    INCOME BEFORE INCOME TAXES      1,715     1,444     5,019     3,906
    Income tax expense                449       419     1,423     1,104
                                      ---       ---     -----     -----

      Net income                   $1,266    $1,025    $3,596    $2,802
                                   ======    ======    ======    ======

    Average Shares Outstanding  2,861,083 2,893,621 2,868,152 2,971,398

    Earnings Per Share              $0.44     $0.35     $1.25     $0.94

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