Commercial National Financial Corporation Reports 4th Quarter 2019 Earnings
ITHACA, Mich., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2019 net income of $1,316,000, or $.33 per share compared to fourth quarter 2018 net income of $1,076,000, or $.27 per share. Return on Equity (ROE) was 13.51% for the fourth quarter of 2019 compared to 12.30% for the fourth quarter of 2018.
Total assets were $504.9 million at December 31, 2019 compared to $527.4 million at December 31, 2018. The decrease in total assets and deposits is primarily due to intentionally decreasing brokered certificates of deposit with excess liquidity. This contributed to an improved net interest margin which was 3.15% in the fourth quarter of 2019 as compared to 2.88% in the fourth quarter of 2018. Total loans of $385.7 million increased $10.7 million, or 2.9% year over year. We continue to focus on growing loans and core deposits while maintaining our underwriting standards.
For the fourth quarter ended December 31, 2019, net interest income increased $211,000, or 5.9% primarily due to the net interest margin improvement discussed above. Non-interest income rose by $111,000, or 23.2% primarily due to increased loan fees. Operating expenses increased by $57,000, or 2.1% 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.
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 December 31, | Year Ended December 31, | ||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||
| Return on Equity (ROE) | 13.51% | 12.30% | 13.51% | 13.28% | |||||||||
| Return on Assets (ROA) | 1.02% | 0.81% | 0.97% | 0.86% | |||||||||
| Net Interest Margin | 3.15% | 2.88% | 3.03% | 2.92% | |||||||||
| December 31, | |||||||||||||
| 2019 | 2018 | ||||||||||||
| Non-performing Assets Ratio | 0.70% | 0.35% | |||||||||||
| Tier 1 Leverage Capital(1) | 9.26% | 8.42% | |||||||||||
| Total Risk-based Capital(1) | 14.18% | 14.36% | |||||||||||
| Book Value Per Share | $9.77 | $8.85 | |||||||||||
| Market Value Per Share | $11.45 | $11.49 | |||||||||||
| (1) Ratios are for Commercial Bank. | . | . | |||||||||||
| Consolidated Statements of Income (unaudited): | |||||||||||
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||
| Interest Income | $ | 4,958,167 | $ | 4,941,598 | $ | 20,060,797 | $ | 19,248,659 | |||
| Interest Expense | 1,186,712 | 1,381,420 | 5,371,110 | 5,010,923 | |||||||
| Net Interest Income | 3,771,455 | 3,560,178 | 14,689,687 | 14,237,736 | |||||||
| Provision for loan losses | - | - | - | - | |||||||
| Non-interest income | 588,131 | 477,311 | 2,449,734 | 1,989,948 | |||||||
| Operating Expenses | 2,728,814 | 2,671,603 | 11,050,845 | 10,718,118 | |||||||
| Income before taxes | 1,630,772 | 1,365,886 | 6,088,576 | 5,509,566 | |||||||
| Income tax expense | 314,500 | 290,149 | 1,070,000 | 1,008,000 | |||||||
| Net Income | $ | 1,316,272 | $ | 1,075,737 | $ | 5,018,576 | $ | 4,501,566 | |||
| Net Income per share – diluted | $ | 0.33 | $ | 0.27 | $ | 1.27 | $ | 1.14 | |||
| Dividends declared | $ | 0.13 | $ | 0.13 | $ | 0.52 | $ | 0.52 | |||
| Consolidated Balance Sheets (unaudited): | |||||||
| December 31, | |||||||
| 2019 | 2018 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 21,807,616 | $ | 31,715,786 | |||
| Time deposits with other banks | 31,956,000 | 53,036,000 | |||||
| Securities | 38,214,458 | 39,551,366 | |||||
| Loans | 385,691,917 | 374,975,157 | |||||
| Allowance for loan losses | (2,751,767 | ) | (2,672,568 | ) | |||
| Loans, net | 382,940,150 | 372,302,589 | |||||
| Premises and equipment, net | 8,343,479 | 8,295,195 | |||||
| Other assets | 21,676,803 | 22,466,636 | |||||
| Total Assets | $ | 504,938,506 | $ | 527,367,572 | |||
| Liabilities | |||||||
| Deposits | $ | 390,063,519 | $ | 421,030,232 | |||
| Other borrowings | 59,501,813 | 55,024,250 | |||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||
| Other liabilities | 3,216,264 | 2,798,839 | |||||
| Total Liabilities | 466,184,596 | 492,256,321 | |||||
| Equity | |||||||
| Total Equity | 38,753,910 | 35,111,251 | |||||
| Total Liabilities and Equity | $ | 504,938,506 | $ | 527,367,572 | |||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
