CEFC - Commercial National Financial Corporation Reports 2nd Quarter 2019 Earnings
ITHACA, Mich., July 25, 2019 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2019 net income of $1,123,000, or $.28 per share compared to second quarter 2018 net income of $1,185,000, or $.30 per share. Return on Equity (ROE) was 12.32% for the second quarter of 2019 compared to 14.17% for the second quarter of 2018.
Total assets were $520.1 million at June 30, 2019 compared to $507.4 million at June 30, 2018. Total loans of $376.3 million decreased $2.9 million, or .8% 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, our loan pipeline is growing and we expect commercial and construction loan closings to increase loan balances during the second half of 2019.
For the second quarter ended June 30, 2019, net interest income increased $25,000, or .7%. During the next several quarters, we intend to use excess cash to reduce higher interest rate wholesale borrowings. Non-interest income rose by $18,000, or 3.8% due to increased loan fees. Operating expenses increased by $117,000, or 4.5% primarily due to higher wages and benefits expense and professional fees.
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 June 30, |
| Six Months Ended June 30, |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Return on Equity (ROE) |
| 12.32 |
| % |
| 14.17 |
| % |
| 12.42 |
| % |
| 13.60 |
| % |
| Return on Assets (ROA) |
| 0.86 |
| % |
| 0.91 |
| % |
| 0.86 |
| % |
| 0.87 |
| % |
| Net Interest Margin |
| 2.95 |
| % |
| 2.92 |
| % |
| 2.93 |
| % |
| 2.95 |
| % |
| June 30, |
| 2019 |
| 2018 |
| Non-performing Assets Ratio |
| 0.56 |
| % |
| 0.47 |
| % |
| Tier 1 Leverage Capital(1) |
| 8.71 |
| % |
| 8.24 |
| % |
| Total Risk-based Capital(1) |
| 14.35 |
| % |
| 13.97 |
| % |
| Book Value Per Share |
| $ |
| 9.32 |
| $ |
| 8.52 |
| Market Value Per Share |
| $ |
| 11.25 |
| $ |
| 12.00 |
| (1) Ratios are for Commercial Bank. |
| . |
| . |
| Consolidated Statements of Income (unaudited): |
| Quarter Ended June 30, |
| Six Months Ended June 30, |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Interest Income |
| $ |
| 5,068,460 |
| $ |
| 4,777,678 |
| $ |
| 10,042,146 |
| $ |
| 9,513,890 |
| Interest Expense |
| 1,467,577 |
| 1,201,560 |
| 2,876,198 |
| 2,321,250 |
| Net Interest Income |
| 3,600,883 |
| 3,576,118 |
| 7,165,948 |
| 7,192,640 |
| Provision for loan losses |
| - |
| - |
| - |
| - |
| Non-interest income |
| 494,818 |
| 476,552 |
| 1,083,471 |
| 884,618 |
| Operating Expenses |
| 2,734,030 |
| 2,617,459 |
| 5,585,350 |
| 5,342,436 |
| Income before taxes |
| 1,361,671 |
| 1,435,211 |
| 2,664,069 |
| 2,734,822 |
| Income tax expense |
| 238,500 |
| 250,000 |
| 440,000 |
| 486,000 |
| Net Income |
| $ |
| 1,123,171 |
| $ |
| 1,185,211 |
| $ |
| 2,224,069 |
| $ |
| 2,248,822 |
| Net Income per share – diluted |
| $ |
| 0.28 |
| $ |
| 0.30 |
| $ |
| 0.56 |
| $ |
| 0.57 |
| Dividends declared |
| $ |
| 0.13 |
| $ |
| 0.13 |
| $ |
| 0.26 |
| $ |
| 0.26 |
| Consolidated Balance Sheets (unaudited): |
| June 30, |
| 2019 |
| 2018 |
| Assets |
| Cash and cash equivalents |
| $ |
| 30,455,622 |
| $ |
| 12,422,133 |
| Time deposits with other banks |
| 44,387,000 |
| 47,834,000 |
| Securities |
| 41,633,532 |
| 40,971,026 |
| Loans |
| 376,254,807 |
| 379,195,022 |
| Allowance for loan losses |
| (2,742,679 |
| ) |
| (2,655,800 |
| ) |
| Loans, net |
| 373,512,128 |
| 376,539,222 |
| Premises and equipment, net |
| 8,625,432 |
| 7,914,647 |
| Other assets |
| 21,508,487 |
| 21,765,211 |
| Total Assets |
| $ |
| 520,122,201 |
| $ |
| 507,446,239 |
| Liabilities |
| Deposits |
| $ |
| 409,887,337 |
| $ |
| 401,676,958 |
| Other borrowings |
| 56,911,082 |
| 55,801,013 |
| Trust preferred |
| 13,403,000 |
| 13,403,000 |
| Other liabilities |
| 2,975,910 |
| 2,790,775 |
| Total Liabilities |
| 483,177,329 |
| 473,671,746 |
| Equity |
| Total Equity |
| 36,944,872 |
| 33,774,493 |
| Total Liabilities and Equity |
| $ |
| 520,122,201 |
| $ |
| 507,446,239 |
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528