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Commercial National Financial Corporation Reports 2nd Quarter 2015 Earnings

ITHACA, Mich., July 23, 2015 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced 2015 second quarter net income of $687,000, or $0.21 per share compared to 2014 second quarter net income of $612,000, or $0.19 per share.

Total loans grew $12.8 million, or 4.8% when comparing June 30, 2015 to June 30, 2014. We are continuing our efforts to increase loan volume while maintaining our credit quality standards. For the quarter ended June 30, 2015, provision for loan loss expense and loss share reimbursement revenue were significantly lower due to improved credit quality metrics in the loss share loan portfolio. Operating expenses decreased $226,000 or 10.2% due to lower collection expenses and continued measures taken to reduce other expense categories.

Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank, with full-service banking offices in Alma, Greenville, Hastings, Ithaca, Lake Odessa, Middleton and St. Louis and a loan production office in Mt. Pleasant, Michigan. Visit www.commercial-bank.com to view the latest consolidated Annual Report, news releases and other information about CEFC and Commercial Bank.

Selected Financial Data (unaudited):
Quarter Ended June 30,Six Months Ended June 30,
2015 2014 2015 2014
Return on Equity (ROE) 11.85% 11.32% 11.59% 10.80%
Return on Assets (ROA) .74 .65 .71 .62
Interest Margin 3.06 2.98 3.10 3.00
Efficiency Ratio 64.08 63.23 66.29 67.96
June 30,
2015 2014
Non-performing Assets Ratio .69% 1.09%
Tier 1 Leverage Capital(1) 8.72 8.25
Total Risk-based Capital(1) 15.24 15.54
Book Value Per Share$7.13 $6.75
(1) Capital ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
Quarter Ended June 30,Six Months Ended June 30,
2015 2014 2015 2014
Interest Income$3,463,057 $3,549,685 $7,031,139 $7,111,794
Interest Expense 816,471 917,025 1,661,697 1,870,810
Net Interest Income 2,646,586 2,632,660 5,369,442 5,240,984
Provision for loan losses 105,842 421,017 212,416 466,930
Non-interest income 434,907 835,966 877,911 1,237,442
Operating Expenses 1,985,944 2,212,108 4,171,203 4,450,184
Income before taxes 989,707 835,501 1,863,734 1,561,312
Income tax expense 302,246 223,061 540,009 407,121
Net Income$687,461 $612,440 $1,323,725 $1,154,191
Net Income per share – basic$0.21 $0.19 $.41 $.35
Net Income per share – diluted$0.21 $0.19 $.41 $.35
Consolidated Balance Sheets (unaudited):
June 30,
2015 2014
Assets
Cash and cash equivalents$11,401,612 $12,972,845
Time deposits with other banks 19,554,000 19,708,000
Securities 45,270,704 60,248,028
Loans 281,550,807 268,756,392
Allowance for loan losses (2,574,503) (2,634,965)
Loans, net 278,976,304 266,121,427
Bank premises and equipment 4,328,993 4,439,964
Other assets 17,043,294 15,843,870
Total Assets$376,574,907 $379,334,134
Liabilities
Deposits$300,460,835 $324,998,710
Other borrowings 38,940,920 20,302,809
Trust preferred 10,310,000 10,310,000
Other liabilities 3,669,096 1,756,580
Total Liabilities 353,380,851 357,368,099
Equity
Common stock and paid in capital 13,572,835 13,572,835
Retained earnings 9,661,097 8,755,120
Accumulated OCI (39,876) (361,920)
Total Equity 23,194,056 21,966,035
Total Liabilities and Equity$376,574,907 $379,334,134





Contact: Kevin Twardy CFO and COO (989) 875-5528 ketwardy@commercial-bank.com

Source:Commercial National Financial Corporation