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.
| 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 | |||||||||||
Benjamin Z. Ogle
CFO
989-875-5562