Market Overview

Commercial National Financial Corporation Reports 4th Quarter 2017 Earnings

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ITHACA, Mich., Jan. 26, 2018 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced fourth quarter 2017 net income of $1,334,000, or $.34 per share compared to fourth quarter 2016 net income of $599,000, or $.18 per share.  Fourth quarter 2016 net income would have been $738,000, or $.23 per share when excluding merger-related expenses for the merger with Capital Directions, Inc., the holding company for Mason State Bank.

Net income for the year ended December 31, 2017 was $3,419,000, or $.86 per share compared to net income for 2016 of $2,598,000, or $.80 per share. 

Total assets were $526.4 million at December 31, 2017 compared to $400.4 million at December 31, 2016.   Total loans grew $79 million, or 25.4% year over year.  Most of the increase in total loans was related to the merger with Mason State Bank with the remainder related to commercial loan growth.  The lending environment remains very competitive in our markets.  We are continuing our efforts to increase loan volume while maintaining our credit quality standards. 

For the quarter ended December 31, 2017, net interest income increased $1,131,000, or 39.3% primarily due to the growth in loans mentioned above as compared to the December 31, 2016 quarter.  In addition, $252,000 of interest income was recorded related to the payoff of several non-accrual and purchased-impaired loans.  The provision for loan losses decreased $31,000 due to a lower trend in historical losses as well as net recoveries recorded for the year.  Non-interest income increased $79,000, or 21.9% for the quarter ended December 31, 2017 compared to December 31, 2016 quarter primarily due to combining both banks.  Operating expenses increased by $165,000, or 7% mostly due to combining both banks. 

Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank.   Visit www.commercial-bank.com to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.

                             
Selected Financial Data (unaudited):                            
    Quarter Ended
      Year Ended
 
    December 31,
      December 31,
 
    2017       2016       2017     2016  
Return on Equity (ROE)   15.91 %     9.59 %     10.41 %   10.62 %
Return on Assets (ROA)   1.00       .59       .65     .65  
Net Interest Margin   3.23       3.08       3.05     3.02  
                   
    December 31,                
    2017       2016                
Non-performing Assets Ratio   .53 %     .58 %              
Tier 1 Leverage Capital(1)   7.94       8.45                
Total Risk-based Capital(1)   13.43       13.91                
Book Value Per Share $ 8.28     $ 7.56                
Market Value Per Share   12.00       11.99                
                             
(1) Ratios are for Commercial Bank.                            
                             

 

                                     
Consolidated Statements of Income ($ in 000's except per share data):                                    
    Quarter Ended      Year Ended
    December 31,     December 31,
    2017     2016     2017     2016
Interest Income   $ 5,085       $ 3,685       $ 19,140       $ 14,484
Interest Expense     1,076         807         4,127         3,233
Net Interest Income     4,009         2,878         15,013         11,251
Provision for loan losses     (75 )       (44 )       (150 )    
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