Commercial National Financial Corporation Reports 4Th Quarter 2024 Results

(MENAFN- GlobeNewsWire - Nasdaq) 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.

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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
Time deposits with other banks		1,743,000				3,735,000
Securities		82,075,403				94,306,770
Loans		395,651,055				417,403,567
Allowance for credit losses		(3,482,203	)			(3,570,271	)
Loans, net		392,168,852				413,833,296
Premises and equipment, net		10,037,771				9,252,193
Other assets		25,029,745				25,090,633
Total Assets	$	566,642,927			$	579,160,849
Liabilities
Deposits	$	498,507,449			$	501,646,583
FHLB borrowings		4,000,000				14,000,000
Trust preferred		10,310,000				13,403,000
Other liabilities		3,295,393				3,301,371
Total Liabilities		516,112,842				532,350,954
Equity
Total Equity		50,530,085				46,809,895
Total Liabilities and Equity	$	566,642,927			$	579,160,849

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

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