ITHACA, Mich., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) reported net income for the fourth quarter of 2024 of $1,882,000 or $0.47 per share compared to fourth quarter 2023 net income of $1,458,000 or $0.37 per share. Return on Equity (ROE) was 14.73% for the fourth quarter of 2024 compared to 13.34% for the fourth quarter of 2023.

The federal funds rate cuts helped alleviate interest margin pressure during the fourth quarter of 2024, as net interest income increased by $362,000 or 7.9% compared to the respective 2023 period. Interest income increased by $112,000, as yields on loans and securities remained above prior period levels. Interest expense decreased by $250,000, as deposit rates were reduced following the federal funds rate cuts. Non-interest income improved by $250,000 for the current quarter, while operating expenses increased by $151,000, which were mainly due to higher wages and benefits expense.

Total assets were $567 million as of December 31, 2024 compared to $579 million as of December 31, 2023. The decrease in assets was due to the repayment of wholesale borrowings and trust preferred debt totaling $13 million, along with a 0.6% decrease in deposit balances. The security portfolio decreased by $12 million, as funds from matured securities were used to repay wholesale borrowings. While total loans decreased by $22 million or 5.2% due to the high interest rate environment and early loan payoffs, loan quality remained strong with a non-performing assets ratio of 0.28%. Additionally, 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 Year Ended 
 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 
Return on Equity (ROE) 14.73%  13.34%  12.04%  14.40% 
Return on Assets (ROA) 1.31%  0.99%  1.02%  1.04% 
Net Interest Margin 3.66%  3.28%  3.44%  3.26% 
       
 Dec 31, 2024 Dec 31, 2023     
Non-Performing Assets Ratio 0.28%  0.16%     
Tier 1 Leverage Capital Ratio(1) 10.32%  9.63%     
Total Risk-Based Capital Ratio(1) 16.99%  15.58%     
Book Value Per Share$12.74  $11.80      
Market Value Per Share$9.85  $9.26      
(1) Ratios are for Commercial Bank        
         
         
         
Consolidated Statements of Income (unaudited):     
 Quarter Ended Year Ended 
 Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 
Interest Income$6,692,617  $6,580,148  $26,762,188  $25,392,219  
Interest Expense 1,764,560   2,014,110   8,087,045   7,026,000  
Net Interest Income 4,928,057   4,566,038   18,675,143   18,366,219  
Provision for credit losses (55,008)  (57,494)  (93,980)  (165,494) 
Non-interest income 706,790   456,500   2,407,386   1,998,998  
Operating Expenses 3,433,219   3,281,896   14,102,164   13,005,407  
Income before taxes 2,256,636   1,798,136   7,074,345   7,525,304  
Income tax expense 374,998   340,000   1,211,078   1,352,663  
Net Income$1,881,638  $1,458,136  $5,863,267  $6,172,641  
         
Net Income per share - diluted$0.47  $0.37  $1.48  $1.56  
Dividends declared$0.14  $0.14  $0.56  $0.56  
         
         
         
Consolidated Balance Sheets (unaudited):       
       
 Dec 31, 2024 Dec 31, 2023     
Assets        
Cash and cash equivalents$55,588,156  $32,942,957     
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