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ITHACA, Mich., April 20, 2018 -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced first quarter 2018 net income of $1,064,000, or $.27 per share compared to a first quarter 2017 net loss of $206,000, or $.05 per share. Excluding merger-related expenses for the merger with Capital Directions, Inc., the holding company for Mason State Bank, 2017 first quarter net income was $803,000, or $.21 per share.
Total assets were $530 million at March 31, 2018 compared to $535.9 million at March 31, 2017. Total loans were approximately flat year over year. The lending environment remains very competitive in our markets. We are continuing our efforts to increase loan volume while maintaining our credit quality standards.
For the quarter ended March 31, 2018, net interest income increased $16,000, or .4%. Increases in interest income from the higher interest rate environment were mostly offset by a higher cost of funds. The provision for loan losses decreased $16,000 due to a lower trend in historical losses. Non-interest income decreased $12,000, or 3% for the quarter ended March 31, 2018 compared to March 31, 2017 quarter primarily due to lower service charges. Operating expenses decreased by $1,665,000, or 37.9% mostly due to the absence of one-time merger-related expenses in the current quarter as well as from the realization of other cost saving opportunities.
Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank. 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 March 31, | |||||||
| 2018 | 2017 | ||||||
| Return on Equity (ROE) | 13.01 | % | (2.61 | )% | |||
| Return on Assets (ROA) | 0.83 | % | (0.16 | )% | |||
| Net Interest Margin | 2.99 | % | 2.95 | % | |||
| March 31, | |||||||
| 2018 | 2017 | ||||||
| Non-performing Assets Ratio | 0.50 | % | 0.48 | % | |||
| Tier 1 Leverage Capital(1) | 8.16 | % | 7.76 | % | |||
| Total Risk-based Capital(1) | 13.52 | % | 13.34 | % | |||
| Book Value Per Share | $ | 8.37 | $ | 7.99 | |||
| Market Value Per Share | $ | 12.50 | $ | 11.37 | |||
| (1) Ratios are for Commercial Bank. | |||||||
| Consolidated Statements of Income (unaudited): | |||||||
| Quarter Ended March 31, | |||||||
| 2018 | 2017 | ||||||
| Interest Income | $ | 4,736,212 | $ | 4,560,656 | |||
| Interest Expense | 1,119,690 | 959,834 | |||||
| Net Interest Income | 3,616,522 | 3,600,822 | |||||
| Provision for loan losses | - | 15,814 | |||||
| Non-interest income | 408,066 | 420,523 | |||||
| Operating Expenses | 2,724,977 | 4,389,526 | |||||
| Income before taxes | 1,299,611 | (383,995 | ) | ||||
| Income tax expense | 236,000 | (178,000 | ) | ||||
| Net Income | $ | 1,063,611 | $ | (205,995 | ) | ||
| Net Income per share – basic | $ | 0.27 | $ | (0.05 | ) | ||
| Net Income per share – diluted | $ | 0.27 | $ | (0.05 | ) | ||
| Dividends declared | $ | 0.13 | $ | 0.13 | |||
| Consolidated Balance Sheets (unaudited): | |||||||
| March 31, | |||||||
| 2018 | 2017 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 27,692,664 | $ | 39,635,041 | |||
| Time deposits with other banks | 50,559,000 | 41,293,000 | |||||
| Securities | 36,591,591 | 38,948,461 | |||||
| Loans | 387,682,296 | 387,305,804 | |||||
| Allowance for loan losses | (2,672,577 | ) | (2,752,545 | ) | |||
| Loans, net | 385,009,719 | 384,553,259 | |||||
| Bank premises and equipment | 7,650,007 | 7,122,992 | |||||
| Other assets | 22,516,191 | 24,300,812 | |||||
| Total Assets | $ | 530,019,172 | $ | 535,853,565 | |||
| Liabilities | |||||||
| Deposits | $ | 422,355,163 | $ | 435,628,474 | |||
| Other borrowings | 57,758,842 | 50,290,819 | |||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||
| Other liabilities | 3,311,055 | 4,846,800 | |||||
| Total Liabilities | 496,828,060 | 504,169,093 | |||||
| Equity | |||||||
| Total Equity | 33,191,112 | 31,684,472 | |||||
| Total Liabilities and Equity | $ | 530,019,172 | $ | 535,853,565 | |||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
