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Commercial National Financial Corporation Reports 3rd Quarter 2015 Earnings

ITHACA, Mich., Oct. 27, 2015 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced 2015 third quarter net income of $762,000, or $0.23 per share compared to 2014 third quarter net income of $697,000, or $0.21 per share.

Total loans grew $12.8 million, or 4.7% when comparing September 30, 2015 to September 30, 2014. We are continuing our efforts to increase loan volume while maintaining our credit quality standards. For the quarter ended September 30, 2015, operating expenses were lower by $66,000 or 3% primarily due to lower staffing levels and lower collection expenses. Net interest income increased $25,000 or .9% due to higher average interest-earning assets. Provision for loan losses decreased by $15,000 due to improved credit quality metrics.

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 Sept. 30,Nine Months Ended Sept. 30,
2015 2014 2015 2014
Return on Equity (ROE) 12.92% 12.49% 12.04% 11.38%
Return on Assets (ROA) .80 .74 .74 .66
Interest Margin 3.02 3.01 3.07 3.01
September 30,
2015 2014
Non-performing Assets Ratio .68% 1.05%
Tier 1 Leverage Capital(1) 8.65 8.44
Total Risk-based Capital(1) 14.84 15.33
Book Value Per Share$7.29 $6.85
(1) Capital ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
Quarter Ended Sept. 30,Nine Months Ended Sept. 30,
2015 2014 2015 2014
Interest Income$3,520,947 $3,556,978 $10,552,086 $10,668,772
Interest Expense 848,951 909,774 2,510,648 2,780,584
Net Interest Income 2,671,996 2,647,204 8,041,438 7,888,188
Provision for loan losses 1,840 17,274 214,256 484,204
Non-interest income 485,786 486,975 1,363,697 1,724,417
Operating Expenses 2,117,701 2,184,257 6,288,904 6,634,441
Income before taxes 1,038,241 932,648 2,901,975 2,493,930
Income tax expense 275,874 235,645 815,883 642,766
Net Income$762,367 $697,003 $2,086,092 $1,851,194
Net Income per share – basic$0.23 $0.21 $.64 $.57
Net Income per share – diluted$0.23 $0.21 $.64 $.57
Consolidated Balance Sheets (unaudited):
September 30,
2015 2014
Assets
Cash and cash equivalents$11,585,726 $9,241,069
Time deposits with other banks 28,354,000 24,534,000
Securities 36,429,571 51,870,911
Loans 285,328,243 272,574,722
Allowance for loan losses (2,444,689) (2,452,292)
Loans, net 282,883,554 270,122,430
Bank premises and equipment 4,378,991 4,386,714
Other assets 17,614,013 15,696,187
Total Assets$381,245,855 $375,851,311
Liabilities
Deposits$301,416,186 $320,508,437
Other borrowings 41,968,565 21,109,627
Trust preferred 10,310,000 10,310,000
Other liabilities 3,843,478 1,648,493
Total Liabilities 357,538,229 353,576,557
Equity
Common stock and paid in capital 13,572,835 13,572,835
Retained earnings 10,000,572 9,029,232
Accumulated OCI 134,219 (327,313)
Total Equity 23,707,626 22,274,754
Total Liabilities and Equity$381,245,855 $375,851,311



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

Source:Commercial National Financial Corporation