Commercial National Financial Corporation Reports 3rd Quarter 2015 Earnings

ITHACA, Mich., Oct. 27, 2015 (GLOBE NEWSWIRE) — Commercial National Financial Corporation (Pink Sheets:CEFC) today announced 2015 third quarter net income of $762,000, or $0.23 per share compared to 2014 third quarter net income of $697,000, or $0.21 per share. 

Total loans grew $12.8 million, or 4.7% when comparing September 30, 2015 to September 30, 2014. We are continuing our efforts to increase loan volume while maintaining our credit quality standards. For the quarter ended September 30, 2015, operating expenses were lower by $66,000 or 3% primarily due to lower staffing levels and lower collection expenses. Net interest income increased $25,000 or .9% due to higher average interest-earning assets. Provision for loan losses decreased by $15,000 due to improved credit quality metrics.

Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank, with full-service banking offices in Alma, Greenville, Hastings, Ithaca, Lake Odessa, Middleton and St. Louis and a loan production office in Mt. Pleasant, Michigan. 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 Sept. 30, Nine Months Ended Sept. 30,
    2015     2014     2015     2014  
Return on Equity (ROE)   12.92 %   12.49 %   12.04 %   11.38 %
Return on Assets (ROA)   .80     .74     .74     .66  
Interest Margin   3.02     3.01     3.07     3.01  
         
  September 30,    
    2015     2014      
Non-performing Assets Ratio   .68 %   1.05 %    
Tier 1 Leverage Capital(1)   8.65     8.44      
Total Risk-based Capital(1)   14.84     15.33      
Book Value Per Share $ 7.29   $ 6.85      
(1) Capital ratios are for Commercial Bank.        
         
Consolidated Statements of Income (unaudited):
  Quarter Ended Sept. 30, Nine Months Ended Sept. 30,
    2015     2014     2015     2014  
Interest Income $ 3,520,947   $ 3,556,978   $ 10,552,086   $ 10,668,772  
Interest Expense   848,951     909,774     2,510,648     2,780,584  
Net Interest Income   2,671,996     2,647,204     8,041,438     7,888,188  
Provision for loan losses   1,840     17,274     214,256     484,204  
Non-interest income   485,786     486,975     1,363,697     1,724,417  
Operating Expenses   2,117,701     2,184,257     6,288,904     6,634,441  
Income before taxes   1,038,241     932,648     2,901,975     2,493,930  
Income tax expense   275,874     235,645     815,883     642,766  
Net Income $ 762,367   $ 697,003   $ 2,086,092   $ 1,851,194  
Net Income per share – basic $ 0.23   $ 0.21   $ .64   $ .57  
Net Income per share – diluted $ 0.23   $ 0.21   $ .64   $ .57  
         
         
Consolidated Balance Sheets (unaudited):    
  September 30,    
    2015     2014      
Assets        
Cash and cash equivalents $ 11,585,726   $ 9,241,069      
Time deposits with other banks   28,354,000     24,534,000      
Securities   36,429,571     51,870,911      
Loans   285,328,243     272,574,722      
Allowance for loan losses   (2,444,689 )   (2,452,292 )    
Loans, net   282,883,554     270,122,430      
Bank premises and equipment   4,378,991     4,386,714      
Other assets   17,614,013     15,696,187      
Total Assets $ 381,245,855   $ 375,851,311      
         
Liabilities        
Deposits $ 301,416,186   $ 320,508,437      
Other borrowings   41,968,565     21,109,627      
Trust preferred   10,310,000     10,310,000      
Other liabilities   3,843,478     1,648,493      
Total Liabilities   357,538,229     353,576,557      
         
Equity        
Common stock and paid in capital   13,572,835     13,572,835      
Retained earnings   10,000,572     9,029,232      
Accumulated OCI   134,219     (327,313 )    
Total Equity   23,707,626     22,274,754      
Total Liabilities and Equity $ 381,245,855   $ 375,851,311      

 

CONTACT: Contact:
Kevin Twardy
CFO and COO
(989) 875-5528
ketwardy@commercial-bank.com