ITHACA, Mich., April 26, 2019 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2019 net income of $1,101,000, or $.28 per share compared to first quarter 2018 net income of $1,064,000, or $.27 per share. Return on Equity (ROE) was 12.60% for the first quarter of 2019 compared to 13.01% for the first quarter of 2018.
Total assets were $527.6 million at March 31, 2019 compared to $530 million at March 31, 2018. Total loans of $378 million decreased $9.7 million, or 2.5% year over year. The lending environment remains very competitive in our markets and we experienced several large commercial loan payoffs during the past twelve months. However, we resumed loan growth during the current quarter with loans increasing $3.1 million, or .8%.
For the first quarter ended March 31, 2019, net interest income decreased $51,000, or 1.4% primarily due to a higher cost of funds. During the next several quarters, we intend to use excess cash to reduce higher interest rate wholesale borrowings. Non-interest income rose by $181,000, or 44.3% due to increases in several other income categories. Operating expenses increased by $126,000, or 4.6% primarily due to higher wages and benefits expense.
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, | |||||
| 2019 | 2018 | ||||
| Return on Equity (ROE) | 12.60% | 13.01% | |||
| Return on Assets (ROA) | 0.85% | 0.83% | |||
| Net Interest Margin | 2.93% | 2.99% | |||
| March 31, | |||||
| 2019 | 2018 | ||||
| Non-performing Assets Ratio | 0.49% | 0.50% | |||
| Tier 1 Leverage Capital(1) | 8.57% | 8.16% | |||
| Total Risk-based Capital(1) | 14.27% | 13.52% | |||
| Book Value Per Share | $9.07 | $8.37 | |||
| Market Value Per Share | $11.35 | $12.50 | |||
| (1) Ratios are for Commercial Bank. | . | . | |||
| Consolidated Statements of Income (unaudited): | |||||
| Quarter Ended March 31, | |||||
| 2019 | 2018 | ||||
| Interest Income | $ | 4,973,686 | $ | 4,736,212 | |
| Interest Expense | 1,408,621 | 1,119,690 | |||
| Net Interest Income | 3,565,065 | 3,616,522 | |||
| Provision for loan losses | - | - | |||
| Non-interest income | 588,653 | 408,066 | |||
| Operating Expenses | 2,851,320 | 2,724,977 | |||
| Income before taxes | 1,302,398 | 1,299,611 | |||
| Income tax expense | 201,500 | 236,000 | |||
| Net Income | $ | 1,100,898 | $ | 1,063,611 | |
| Net Income per share – diluted | $ | 0.28 | $ | 0.27 | |
| Dividends declared | $ | 0.13 | $ | 0.13 | |
| Consolidated Balance Sheets (unaudited): | |||||
| March 31, | |||||
| 2019 | 2018 | ||||
| Assets | |||||
| Cash and cash equivalents | $ | 35,029,958 | $ | 27,692,664 | |
| Time deposits with other banks | 46,875,000 | 50,559,000 | |||
| Securities | 39,792,107 | 36,591,591 | |||
| Loans | 378,025,529 | 387,682,296 | |||
| Allowance for loan losses | (2,672,096) | (2,672,577) | |||
| Loans, net | 375,353,433 | 385,009,719 | |||
| Premises and equipment, net | 8,577,836 | 7,650,007 | |||
| Other assets | 22,016,752 | 22,516,191 | |||
| Total Assets | $ | 527,645,086 | $ | 530,019,172 | |
| Liabilities | |||||
| Deposits | $ | 423,767,554 | $ | 422,355,163 | |
| Other borrowings | 51,874,954 | 57,758,842 | |||
| Trust preferred | 13,403,000 | 13,403,000 | |||
| Other liabilities | 2,634,945 | 3,311,055 | |||
| Total Liabilities | 491,680,453 | 496,828,060 | |||
| Equity | |||||
| Total Equity | 35,964,633 | 33,191,112 | |||
| Total Liabilities and Equity | $ | 527,645,086 | $ | 530,019,172 | |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528