Commercial National Financial Corporation Reports
4thQuarter 2018 Earnings
Ithaca, Michigan, January 23, 2019 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced fourth quarter 2018 net income of $1,076,000, or $.27 per share compared to fourth quarter 2017 net income of $1,334,000, or $.34 per share. Return on Equity (ROE) was 12.3% for the fourth quarter of 2018 compared to 15.9% for the fourth quarter of 2017.
Total assets were $527.4 million at December 31, 2018 compared to $526.4 million at December 31, 2017. Total loans of $375 million decreased $14.7 million, or 3.8% year-over-year. The lending environment remains very competitive in our markets and we experienced a number of large commercial loan payoffs during 2018.
For the quarter ended December 31, 2018, net interest income decreased $448,000, or 11.2% as compared to the prior year's quarter primarily due to a higher cost of funds and lower loan interest income. The prior year's quarter included loan interest income of $252,000 related to the payoff of several non-accrual loans. Non-interest income increased $38,000, or 8.7% primarily due to higher mortgage banking revenue. Operating expenses increased by $140,000, or 5.5% primarily due to higher wages and benefits expense. Federal income tax expense was lower by $368,000 primarily due to the decrease in pre-tax income and in the statutory rate from 34% to 21%.
Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank. Visitwww.commercial-bank.comto view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.
Selected Financial Data (unaudited):
Quarter Ended December 31, Year Ended December 31,2018 2017 2018 2017
Return on Equity (ROE) Return on Assets (ROA) Net Interest Margin
12.30%
0.81%
2.88%
15.91% 1.00% 3.23%
13.28% 10.41%
0.86% 0.65%
2.92% 3.05%
December 31,
2018
2017
Non-performing Assets Ratio 0.35% 0.53%Tier 1 Leverage Capital(1)
8.42% 7.94%
Total Risk-based Capital(1)
14.36% 13.43%Book Value Per Share $8.85 $8.28
Market Value Per Share $11.49 $12.00
(1)Ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
Quarter Ended December 31,2018 2017
Year Ended December 31,2018 2017
Interest Income | $ | 4,941,598 | $ | 5,084,876 | $ | 19,248,659 | $ | 19,140,345 |
Interest Expense | 1,381,420 | 1,076,326 | 5,010,923 | 4,127,266 | ||||
Net Interest Income | 3,560,178 | 4,008,550 | 14,237,736 | 15,013,079 | ||||
Provision for loan losses | - | (75,000) | - | (150,000) | ||||
Non-interest income | 477,311 | 439,166 | 1,989,948 | 1,984,093 | ||||
Operating Expenses | 2,671,603 | 2,531,237 | 10,718,118 | 12,246,358 | ||||
Income before taxes | 1,365,886 | 1,991,479 | 5,509,566 | 4,900,814 | ||||
Income tax expense | 290,149 | 657,719 | 1,008,000 | 1,481,719 | ||||
Net Income | $ | 1,075,737 | $ | 1,333,760 | $ | 4,501,566 | $ | 3,419,095 |
Net Income per share - diluted | $ | 0.27 | $ | 0.34 | $ | 1.14 | $ | 0.86 |
Dividends declared | $ | 0.13 | $ | 0.13 | $ | 0.52 | $ | 0.52 |
Consolidated Balance Sheets (unaudited):
December 31,
2018
2017
Assets | ||
Cash and cash equivalents | $ 20,348,244 | |
Time deposits with other banks | 53,039,000 | |
Securities | 36,365,362 | |
Loans | 389,659,820 | |
Allowance for loan losses | (2,680,743) | |
Loans, net | 386,979,077 | |
Premises and equipment, net | 6,972,170 | |
Other assets | 22,669,726 | |
Total Assets | $ 527,367,572 | $526,373,579 |
Liabilitie s | ||
Deposits | $ 421,030,232 | $416,622,495 |
Other borrowings | 55,024,250 | 59,531,566 |
Trust preferred | 13,403,000 | 13,403,000 |
Other liabilities | 2,798,839 | 3,985,188 |
Total Liabilities | 492,256,321 | 493,542,249 |
Equity | ||
Total Equity | 35,111,251 | 32,831,330 |
Total Liabilities and Equity | $ 527,367,572 | $526,373,579 |
Contact: | ||
Kevin A. Twardy | ||
CFO and COO | ||
989-875-5528 |
22,466,636
$ 31,715,786
53,036,000
39,551,366
374,975,157
(2,672,568)
372,302,589
8,295,195
Attachments
- Original document
- Permalink
Disclaimer
Commercial National Financial Corp. published this content on 23 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 January 2019 10:43:02 UTC