Commercial National Financial Corporation Reports 3rd Quarter 2019 Earnings
ITHACA, Mich., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2019 net income of $1,478,000, or $.37 per share compared to third quarter 2018 net income of $1,177,000, or $.30 per share. Return on Equity (ROE) was 15.57% for the third quarter of 2019 compared to 13.68% for the third quarter of 2018.
Total assets were $512.1 million at September 30, 2019 compared to $519.1 million at September 30, 2018. The decrease in total assets is primarily due to intentionally decreasing brokered certificates of deposit with excess liquidity. This resulted in an improved net interest margin which was 3.12% in the third quarter of 2019 as compared to 2.88% in the third quarter of 2018. Total loans of $381.9 million increased $.1 million, or .04% year over year. The lending environment remains very competitive in our markets and we experienced several large commercial loan payoffs during the past twelve months. However, our loan pipeline is growing and we expect loans to increase during the next several quarters.
For the third quarter ended September 30, 2019, net interest income increased $267,000, or 7.7% primarily due to the net interest margin improvement discussed above. Non-interest income rose by $150,000, or 23.9% primarily due to increased loan fees. Operating expenses increased by $33,000, or 1.2% primarily due to higher wages and benefits expense and professional fees, partially offset by lower FDIC insurance expense related to the small bank assessment credits of $65,000 applied by the FDIC during the quarter.
Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank. Visit to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.
| Selected Financial Data (unaudited): | ||||||||||||||||
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Return on Equity (ROE) | 15.57 | % | 13.68 | % | 13.51 | % | 13.62 | % | ||||||||
| Return on Assets (ROA) | 1.14 | % | 0.91 | % | 0.95 | % | 0.88 | % | ||||||||
| Net Interest Margin | 3.12 | % | 2.88 | % | 3.00 | % | 2.93 | % | ||||||||
| September 30, | ||||||||||||||||
| 2019 | 2018 | |||||||||||||||
| Non-performing Assets Ratio | 0.75 | % | 0.40 | % | ||||||||||||
| Tier 1 Leverage Capital(1) | 9.08 | % | 8.51 | % | ||||||||||||
| Total Risk-based Capital(1) | 14.10 | % | 13.94 | % | ||||||||||||
| Book Value Per Share | $ | 9.59 | $ | 8.67 | ||||||||||||
| Market Value Per Share | $ | 10.20 | $ | 12.47 | ||||||||||||
| (1) Ratios are for Commercial Bank. | . | . | ||||||||||||||
| Consolidated Statements of Income (unaudited): | ||||||||||||||||
| Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Interest Income | $ | 5,060,484 | $ | 4,793,171 | $ | 15,102,630 | $ | 14,307,061 | ||||||||
| Interest Expense | 1,308,200 | 1,308,253 | 4,184,398 | 3,629,503 | ||||||||||||
| Net Interest Income | 3,752,284 | 3,484,918 | 10,918,232 | 10,677,558 | ||||||||||||
| Provision for loan losses | - | - | - | - | ||||||||||||
| Non-interest income | 778,132 | 628,019 | 1,861,603 | 1,512,637 | ||||||||||||
| Operating Expenses | 2,736,680 | 2,704,079 | 8,322,030 | 8,046,515 | ||||||||||||
| Income before taxes | 1,793,736 | 1,408,858 | 4,457,805 | 4,143,680 | ||||||||||||
| Income tax expense | 315,500 | 231,851 | 755,500 | 717,851 | ||||||||||||
| Net Income | $ | 1,478,236 | $ | 1,177,007 | $ | 3,702,305 | $ | 3,425,829 | ||||||||
| Net Income per share – diluted | $ | 0.37 | $ | 0.30 | $ | 0.93 | $ | 0.86 | ||||||||
| Dividends declared | $ | 0.13 | $ | 0.13 | $ | 0.39 | $ | 0.39 | ||||||||
| Consolidated Balance Sheets (unaudited): | ||||||||||||||||
| September 30, | ||||||||||||||||
| 2019 | 2018 | |||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 29,548,841 | $ | 21,135,682 | ||||||||||||
| Time deposits with other banks | 33,703,000 | 49,052,000 | ||||||||||||||
| Securities | 39,462,218 | 38,988,839 | ||||||||||||||
| Loans | 381,898,344 | 381,715,154 | ||||||||||||||
| Allowance for loan losses | (2,753,679 | ) | (2,668,424 | ) | ||||||||||||
| Loans, net | 379,144,665 | 379,046,730 | ||||||||||||||
| Premises and equipment, net | 8,584,696 | 8,114,616 | ||||||||||||||
| Other assets | 21,686,072 | 22,733,983 | ||||||||||||||
| Total Assets | $ | 512,129,492 | $ | 519,071,850 | ||||||||||||
| Liabilities | ||||||||||||||||
| Deposits | $ | 396,407,431 | $ | 413,177,885 | ||||||||||||
| Other borrowings | 61,188,333 | 55,269,515 | ||||||||||||||
| Trust preferred | 13,403,000 | 13,403,000 | ||||||||||||||
| Other liabilities | 3,120,848 | 2,855,188 | ||||||||||||||
| Total Liabilities | 474,119,612 | 484,705,588 | ||||||||||||||
| Equity | ||||||||||||||||
| Total Equity | 38,009,880 | 34,366,262 | ||||||||||||||
| Total Liabilities and Equity | $ | 512,129,492 | $ | 519,071,850 | ||||||||||||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
