Market Overview

Commercial National Financial Corporation Reports 2nd Quarter 2018 Earnings

Share:

ITHACA, Mich., July 25, 2018 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced second quarter 2018 net income of $1,185,000, or $.30 per share compared to second quarter 2017 net income of $1,043,000, or $.26 per share. 

Total assets were $507.4 million at June 30, 2018 compared to $522.7 million at June 30, 2017. Total loans of $379.2 million decreased $3.8 million, or 1% year over year. The lending environment remains very competitive in our markets and we experienced several large commercial loan payoffs in the first six months of 2018. However, our commercial loan pipeline is growing and we continue to develop new and existing customer relationships.

For the quarter ended June 30, 2018, net interest income decreased $60,000, or 1.7%. The increase in interest income from the higher interest rate environment was more than offset by a higher cost of funds. Non-interest income decreased $101,000, or 17.6% primarily due to significantly lower mortgage banking revenue. We continue to see challenges in residential loan demand due to the limited supply of housing inventory. Operating expenses decreased by $105,000, or 3.9% due to lower expense in a number of other expense categories. Federal income tax expense was lower by $214,000 primarily due to the decrease in the statutory rate from 34% to 21%.

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 June 30,     Six Months Ended June 30, 
    2018      2017      2018      2017 
Return on Equity (ROE)   14.17 %     13.08 %     13.60 %     5.21 %
Return on Assets (ROA)   0.91 %     0.79 %     0.87 %     0.32 %
Net Interest Margin   2.92 %     2.96 %     2.95 %     2.96 %
               
   June 30,         
    2018      2017         
Non-performing Assets Ratio   0.47 %     0.45 %        
Tier 1 Leverage Capital(1)   8.24 %     7.80 %        
Total Risk-based Capital(1)   13.97 %     13.58 %        
Book Value Per Share $ 8.52     $ 8.13          
Market Value Per Share $ 12.00     $ 11.20          
(1) Ratios are for Commercial Bank.              
               
Consolidated Statements of Income (unaudited):            
   Quarter Ended June 30,     Six Months Ended June 30, 
    2018      2017      2018      2017 
Interest Income $   4,777,678     $   4,679,237     $   9,513,890     $   9,239,893  
Interest Expense     1,201,560         1,043,565         2,321,250         2,003,399  
Net Interest Income     3,576,118         3,635,672         7,192,640         7,236,494  
Provision for loan losses     -          (15,814 )       -          -   
Non-interest income     476,552         578,012         884,618         998,535  
Operating Expenses     2,617,459         2,722,594         5,342,436         7,112,120  
Income before taxes     1,435,211         1,506,904         2,734,822         1,122,909  
Income tax expense     250,000         464,000         486,000         286,000  
Net Income $   1,185,211     $   1,042,904     $   2,248,822     $   836,909  
Net Income per share – diluted $ 0.30     $ 0.26     $ 0.57     $ 0.21  
Dividends declared $ 0.13     $ 0.13     $ 0.26     $ 0.26  
               
Consolidated Balance Sheets (unaudited):            
   June 30,   
    2018      2017   
Assets        
Cash and cash equivalents $   12,422,133     $   22,326,706    
Time deposits with other banks     47,834,000         51,568,000    
Securities     40,971,026         37,991,116    
Loans     379,195,022         383,028,784    
Allowance for loan losses     (2,655,800 )       (2,790,614 )  
Loans, net     376,539,222         380,238,170    
Bank premises and equipment     7,914,647         7,162,001    
Other assets     21,765,211         23,392,621    
Total Assets $   507,446,239     $   522,678,614    
         
Liabilities        
Deposits $   401,676,958     $   416,484,452    
Other borrowings     55,801,013         56,114,030    
Trust preferred     13,403,000         13,403,000    
Other liabilities     2,790,775         4,429,113    
Total Liabilities     473,671,746         490,430,595    
         
Equity        
Total Equity     33,774,493         32,248,019    
Total Liabilities and Equity $   507,446,239     $   522,678,614    
         

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

View Comments and Join the Discussion!