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 [email protected]