Commercial National Financial Corporation Reports 3rd Quarter 2023 Earnings

ITHACA, Mich., Oct. 27, 2023 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced that net income for the third quarter of 2023 was $1,702,000 or $0.43 per share compared to third quarter 2022 net income of $1,601,000 or $0.40 per share. Return on Equity (ROE) was 15.42% for the third quarter of 2023 compared to 15.72% for the third quarter of 2022.

For the third quarter of 2023, net interest income increased by $45,000 or 1.0% compared to the third quarter of 2022 primarily due to a higher net interest margin, partially offset by lower average interest-earning assets. Total loans decreased by $2.5 million or 0.6% year over year, mainly due to a large commercial loan payoff during the third quarter of 2023. Non-interest income decreased by $86,000 or 13.5% primarily due to lower miscellaneous income. Operating expenses slightly increased by $19,000 or 0.6% primarily due to higher miscellaneous expense.

Total assets were $587.8 million at September 30, 2023 compared to $613.1 million at September 30, 2022. The decrease was primarily due to the repayment of wholesale borrowings with excess liquidity and lower municipal and other public deposits. CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.

Visit www.commercial-bank.com to view the latest news releases and other information about CEFC and Commercial Bank.

Selected Financial Data (unaudited):
	Quarter Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Return on Equity (ROE)		15.42%				15.72%				14.77%				19.00%
Return on Assets (ROA)		1.14%				1.02%				1.06%				1.32%
Net Interest Margin		3.25%				3.02%				3.25%				3.45%
	September 30,
		2023				2022
Non-performing Assets Ratio		0.16%				0.11%
Tier 1 Leverage Capital(1)		9.49%				8.59%
Total Risk-based Capital(1)		15.58%				14.74%
Book Value Per Share	$10.73				$9.39
Market Value Per Share	$7.99				$10.75
(1)Ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
	Quarter Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Interest Income	$	6,456,258			$	5,311,180			$	18,812,071			$	17,231,375
Interest Expense		1,886,333				786,229				5,011,890				1,903,293
Net Interest Income		4,569,925				4,524,951				13,800,181				15,328,082
Provision for loan losses		(217,000	)			-				(108,000	)			-
Non-interest income		554,697				641,174				1,542,498				1,717,031
Operating Expenses		3,263,220				3,243,954				9,723,511				9,518,566
Income before taxes		2,078,402				1,922,171				5,727,168				7,526,547
Income tax expense		376,900				321,000				1,012,663				1,357,000
Net Income	$	1,701,502			$	1,601,171			$	4,714,505			$	6,169,547
Net Income per share - diluted	$	0.43			$	0.40			$	1.19			$	1.56
Dividends declared	$	0.14			$	0.14			$	0.42			$	0.42
Consolidated Balance Sheets (unaudited):
	September 30,
		2023				2022
Assets
Cash and cash equivalents	$	42,306,192			$	53,518,943
Time deposits with other banks		4,482,000				9,458,000
Securities		95,491,438				102,600,641
Loans		414,449,979				416,905,083
Allowance for loan losses		(3,647,087	)			(4,055,878	)
Loans, net		410,802,892				412,849,205
Premises and equipment, net		8,819,331				8,853,644
Other assets		25,886,826				25,825,343
Total Assets	$	587,788,679			$	613,105,776
Liabilities
Deposits	$	509,123,260			$	540,250,306
FHLB borrowings		19,000,000				19,000,000
Trust preferred		13,403,000				13,403,000
Other liabilities		3,699,482				3,210,208
Total Liabilities		545,225,742				575,863,514
Equity
Total Equity		42,562,937				37,242,262
Total Liabilities and Equity	$	587,788,679			$	613,105,776

CONTACT: Contact: Benjamin Z. Ogle CFO 989-875-5562