Commercial National Financial Corporation Reports 4th Quarter 2018 Earnings
January 23, 2019 at 04:31 pm IST
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ITHACA, Mich., Jan. 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. Visit www.commercial-bank.com to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.
Commercial National Financial Corporation (CNFC) is a one-bank holding company, which operates through its subsidiary, Commercial Bank (the Bank). The Bank provides a full range of banking services to individuals, agricultural businesses, commercial businesses and light industries located in its service area. It maintains a diversified loan portfolio, including loans to individuals for home mortgages, automobiles and personal expenditures, and loans to business enterprises for current operations and expansion. The Bank generally requires collateral for all loans. The Bank offers a variety of deposit products, including checking, savings, individual retirement accounts and certificates of deposit. The principal markets for the Bank's financial services are the Michigan communities, in which the Bank is located and the areas immediately surrounding these communities. The Bank has approximately 11 offices located in Barry, Gratiot, Ingham, Kent and Montcalm Counties in Michigan.