Market Overview

Commercial National Financial Corporation Reports 1st Quarter 2018 Earnings

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ITHACA, Mich., April 20, 2018 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced first quarter 2018 net income of $1,064,000, or $.27 per share compared to a first quarter 2017 net loss of $206,000, or $.05 per share.  Excluding merger-related expenses for the merger with Capital Directions, Inc., the holding company for Mason State Bank, 2017 first quarter net income was $803,000, or $.21 per share.

Total assets were $530 million at March 31, 2018 compared to $535.9 million at March 31, 2017.   Total loans were approximately flat year over year.  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 March 31, 2018, net interest income increased $16,000, or .4%.  Increases in interest income from the higher interest rate environment were mostly offset by a higher cost of funds. The provision for loan losses decreased $16,000 due to a lower trend in historical losses.  Non-interest income decreased $12,000, or 3% for the quarter ended March 31, 2018 compared to March 31, 2017 quarter primarily due to lower service charges.  Operating expenses decreased by $1,665,000, or 37.9% mostly due to the absence of one-time merger-related expenses in the current quarter as well as from the realization of other cost saving opportunities.

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 March 31,
    2018 2017
  Return on Equity (ROE)   13.01 %   (2.61 )%
  Return on Assets (ROA)   0.83 %   (0.16 )%
  Net Interest Margin   2.99 %   2.95 %
       
    March 31,
    2018 2017
  Non-performing Assets Ratio   0.50 %   0.48 %
  Tier 1 Leverage Capital(1)   8.16 %   7.76 %
  Total Risk-based Capital(1)   13.52 %   13.34 %
  Book Value Per Share $   8.37   $   7.99  
  Market Value Per Share $   12.50   $   11.37  
  (1) Ratios are for Commercial Bank.    
       
  Consolidated Statements of Income (unaudited):  
    Quarter Ended March 31,
    2018 2017
  Interest Income $   4,736,212   $   4,560,656  
  Interest Expense     1,119,690       959,834  
  Net Interest Income     3,616,522       3,600,822  
  Provision for loan losses     -        15,814  
  Non-interest income     408,066       420,523  
  Operating Expenses     2,724,977       4,389,526  
  Income before taxes     1,299,611       (383,995 )
  Income tax expense     236,000       (178,000 )
  Net Income $   1,063,611   $   (205,995 )
  Net Income per share – basic $   0.27   $   (0.05 )
  Net Income per share – diluted $   0.27   $   (0.05 )
  Dividends declared $   0.13   $   0.13  
       
  Consolidated Balance Sheets (unaudited):  
    March 31,
    2018 2017
  Assets    
  Cash and cash equivalents $   27,692,664   $   39,635,041  
  Time deposits with other banks     50,559,000       41,293,000  
  Securities     36,591,591       38,948,461  
  Loans     387,682,296       387,305,804  
  Allowance for loan losses     (2,672,577 )     (2,752,545 )
  Loans, net     385,009,719       384,553,259  
  Bank premises and equipment     7,650,007       7,122,992  
  Other assets     22,516,191       24,300,812  
  Total Assets $   530,019,172   $   535,853,565  
       
  Liabilities    
  Deposits $   422,355,163   $   435,628,474  
  Other borrowings     57,758,842       50,290,819  
  Trust preferred     13,403,000       13,403,000  
  Other liabilities     3,311,055       4,846,800  
  Total Liabilities     496,828,060       504,169,093  
       
  Equity    
  Total Equity     33,191,112       31,684,472  
  Total Liabilities and Equity $   530,019,172   $   535,853,565  
       


Contact:
Kevin A. Twardy
CFO and COO
989-875-5528

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