Commercial National Financial Corporation Reports 3Rd Quarter 2024 Results

(MENAFN- GlobeNewsWire - Nasdaq) 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 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

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

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