Commercial National Financial Corporation Reports 4th Quarter 2024 Results
ITHACA, Mich., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) reported net income for the fourth quarter of 2024 of $1,882,000 or $0.47 per share compared to fourth quarter 2023 net income of $1,458,000 or $0.37 per share. Return on Equity (ROE) was 14.73% for the fourth quarter of 2024 compared to 13.34% for the fourth quarter of 2023.
The federal funds rate cuts helped alleviate interest margin pressure during the fourth quarter of 2024, as net interest income increased by $362,000 or 7.9% compared to the respective 2023 period. Interest income increased by $112,000, as yields on loans and securities remained above prior period levels. Interest expense decreased by $250,000, as deposit rates were reduced following the federal funds rate cuts. Non-interest income improved by $250,000 for the current quarter, while operating expenses increased by $151,000, which were mainly due to higher wages and benefits expense.
Total assets were $567 million as of December 31, 2024 compared to $579 million as of December 31, 2023. The decrease in assets was due to the repayment of wholesale borrowings and trust preferred debt totaling $13 million, along with a 0.6% decrease in deposit balances. The security portfolio decreased by $12 million, as funds from matured securities were used to repay wholesale borrowings. While total loans decreased by $22 million or 5.2% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.28%. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.
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| Selected Financial Data (unaudited): | ||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||||||||||
| Return on Equity (ROE) | 14.73 | % | 13.34 | % | 12.04 | % | 14.40 | % | ||||||||
| Return on Assets (ROA) | 1.31 | % | 0.99 | % | 1.02 | % | 1.04 | % | ||||||||
| Net Interest Margin | 3.66 | % | 3.28 | % | 3.44 | % | 3.26 | % | ||||||||
| Dec 31, 2024 | Dec 31, 2023 | |||||||||||||||
| Non-Performing Assets Ratio | 0.28 | % | 0.16 | % | ||||||||||||
| Tier 1 Leverage Capital Ratio(1) | 10.32 | % | 9.63 | % | ||||||||||||
| Total Risk-Based Capital Ratio(1) | 16.99 | % | 15.58 | % | ||||||||||||
| Book Value Per Share | $12.74 | $11.80 | ||||||||||||||
| Market Value Per Share | $9.85 | $9.26 | ||||||||||||||
| (1) Ratios are for Commercial Bank | ||||||||||||||||
| Consolidated Statements of Income (unaudited): | ||||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||||||||||
| Interest Income | $ | 6,692,617 | $ | 6,580,148 | $ | 26,762,188 | $ | 25,392,219 | ||||||||
| Interest Expense | 1,764,560 | 2,014,110 | 8,087,045 | 7,026,000 | ||||||||||||
| Net Interest Income | 4,928,057 | 4,566,038 | 18,675,143 | 18,366,219 | ||||||||||||
| Provision for credit losses | (55,008 | ) | (57,494 | ) | (93,980 | ) | (165,494 | ) | ||||||||
| Non-interest income | 706,790 | 456,500 | 2,407,386 | 1,998,998 | ||||||||||||
| Operating Expenses | 3,433,219 | 3,281,896 | 14,102,164 | 13,005,407 | ||||||||||||
| Income before taxes | 2,256,636 | 1,798,136 | 7,074,345 | 7,525,304 | ||||||||||||
| Income tax expense | 374,998 | 340,000 | 1,211,078 | 1,352,663 | ||||||||||||
| Net Income | $ | 1,881,638 | $ | 1,458,136 | $ | 5,863,267 | $ | 6,172,641 | ||||||||
| Net Income per share — diluted | $ | 0.47 | $ | 0.37 | $ | 1.48 | $ | 1.56 | ||||||||
| Dividends declared | $ | 0.14 | $ | 0.14 | $ | 0.56 | $ | 0.56 | ||||||||
| Consolidated Balance Sheets (unaudited): | ||||||||||||||||
| Dec 31, 2024 | Dec 31, 2023 | |||||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 55,588,156 | $ | 32,942,957 | ||||||||||||
| Time deposits with other banks | 1,743,000 | 3,735,000 | ||||||||||||||
| Securities | 82,075,403 | 94,306,770 | ||||||||||||||
| Loans | 395,651,055 | 417,403,567 | ||||||||||||||
| Allowance for credit losses | (3,482,203 | ) | (3,570,271 | ) | ||||||||||||
| Loans, net | 392,168,852 | 413,833,296 | ||||||||||||||
| Premises and equipment, net | 10,037,771 | 9,252,193 | ||||||||||||||
| Other assets | 25,029,745 | 25,090,633 | ||||||||||||||
| Total Assets | $ | 566,642,927 | $ | 579,160,849 | ||||||||||||
| Liabilities | ||||||||||||||||
| Deposits | $ | 498,507,449 | $ | 501,646,583 | ||||||||||||
| FHLB borrowings | 4,000,000 | 14,000,000 | ||||||||||||||
| Trust preferred | 10,310,000 | 13,403,000 | ||||||||||||||
| Other liabilities | 3,295,393 | 3,301,371 | ||||||||||||||
| Total Liabilities | 516,112,842 | 532,350,954 | ||||||||||||||
| Equity | ||||||||||||||||
| Total Equity | 50,530,085 | 46,809,895 | ||||||||||||||
| Total Liabilities and Equity | $ | 566,642,927 | $ | 579,160,849 | ||||||||||||
Contact:
Benjamin Z. Ogle
CFO
989-875-5562
