Commercial National Corp. in Latrobe, Pa., said Tuesday that its fourth-quarter net income climbed 44% from the same period in 2010, to $1.2 million, as lower funding costs and increased income from investments more than offset a decline in loan balances.

The earnings growth was driven largely by a 33% increase in income from securities investments, to $1.3 million, and a 25% drop in its interest expense. Interest income on loans, by contrast, fell 8% year over year, as total loan balances declined 7%.

For the full year, the $401 million-asset company earned $6.7 million, up 22% from 2010.

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