ITHACA, Mich., Oct. 25, 2024 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) reported net income for the third quarter of 2024 of $1,408,000 or $0.36 per share compared to third quarter 2023 net income of $1,702,000 or $0.43 per share. Return on Equity (ROE) was 11.32% for the third quarter of 2024 compared to 15.42% for the third quarter of 2023.

Net interest income for the third quarter of 2024 increased by $107,000 or 2.3% compared to the respective 2023 period. Interest income increased by $288,000 due to higher yields on loans and other interest-earning assets, while interest expense only increased by $181,000. Non-interest income remained relatively consistent at $550,000. Operating expenses increased by $255,000 or 7.8% mainly due to higher wages and benefits expense.

Total assets were $574.3 million as of September 30, 2024 compared to $587.8 million as of September 30, 2023. The decrease in assets was due to the repayment of wholesale borrowings and trust preferred debt, along with a 0.7% decrease in deposit balances. The security portfolio decreased by $18.3 million, as funds from matured securities were used to repay wholesale borrowings. While total loans decreased by $6.9 million or 1.7%, loan quality remained strong with a non-performing assets ratio of 0.21%. Additionally, CEFC's wholly owned subsidiary, Commercial Bank, remains significantly above "well capitalized” for regulatory purposes.

Our new banking office in Grand Rapids was opened earlier this year and we are excited to offer our full banking services to the Grand Rapids community.

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

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Selected Financial Data (unaudited):
 Three Months Ended Nine Months Ended
 Sep 30, 2024 Sep 30, 2023 Sep 30, 2024 Sep 30, 2023
Return on Equity (ROE) 11.32%  15.42%  11.09%  14.77%
Return on Assets (ROA) 0.98%  1.14%  0.92%  1.06%
Net Interest Margin 3.47%  3.25%  3.37%  3.25%
      
 Sep 30, 2024 Sep 30, 2023    
Non-Performing Assets Ratio 0.21%  0.16%    
Tier 1 Leverage Capital Ratio(1) 10.17%  9.49%    
Total Risk-Based Capital Ratio(1) 16.35%  15.58%    
Book Value Per Share $12.80  $10.73    
Market Value Per Share $9.03  $7.99    
(1) Ratios are for Commercial Bank       
        
        
Consolidated Statements of Income (unaudited):
 Three Months Ended Nine Months Ended
 Sep 30, 2024 Sep 30, 2023 Sep 30, 2024 Sep 30, 2023
Interest Income$6,744,483  $6,456,258  $20,069,571  $18,812,071 
Interest Expense 2,067,285   1,886,333   6,322,485   5,011,890 
Net Interest Income 4,677,198   4,569,925   13,747,086   13,800,181 
Provision for credit losses 229   (217,000)  (38,972)  (108,000)
Non-interest income 549,612   554,697   1,700,596   1,542,498 
Operating Expenses 3,518,227   3,263,220   10,668,945   9,723,511 
Income before taxes 1,708,354   2,078,402   4,817,709   5,727,168 
Income tax expense 300,020   376,900   836,080   1,012,663 
Net Income$1,408,334  $1,701,502  $3,981,629  $4,714,505 
        
Net Income per share - diluted$0.36  $0.43  $1.00  $1.19 
Dividends declared$0.14  $0.14  $0.42  $0.42 
        
        
Consolidated Balance Sheets (unaudited):
      
 Sep 30, 2024 Sep 30, 2023    
Assets       
Cash and cash equivalents$55,606,415  $42,306,192     
Time deposits with other banks 1,992,000   4,482,000     
Securities 77,226,328   95,491,438     
Loans 407,594,529   414,449,979     
Allowance for credit losses (3,528,332)  (3,647,087)    
Loans, net 404,066,197   410,802,892     
Premises and equipment, net 10,092,279   8,819,331     
Other assets 25,285,806   25,886,826     
Total Assets$574,269,025  $587,788,679     
        
Liabilities       
Deposits$505,613,266  $509,123,260     
FHLB borrowings 4,000,000   19,000,000     
Trust preferred 10,310,000   13,403,000     
Other liabilities 3,598,596   3,699,482     
Total Liabilities 523,521,862   545,225,742     
        
Equity       
Total Equity 50,747,163   42,562,937     
Total Liabilities and Equity$574,269,025  $587,788,679     
        
Contact:

Benjamin Z. Ogle

CFO

989-875-5562