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Commercial National Financial Corporation Reports 1st Quarter 2016 Earnings

ITHACA, Mich., April 27, 2016 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets:CEFC) today announced 2016 first quarter net income of $635,688, or $.20 per share compared to 2015 first quarter net income of $636,264, or $.20 per share.

Total assets were $408.2 million at March 31, 2016 compared to $375.7 million at March 31, 2015. Total loans grew $15.5 million, or 5.7% when comparing March 31, 2016 to March 31, 2015. The majority of loan growth occurred in the commercial loan portfolio. Residential loan growth continues to be challenging due to the lack of inventory of homes for sale. We are continuing our efforts to increase loan volume while maintaining our credit quality standards.

For the quarter ended March 31, 2016, net interest income decreased $9,000, or .3% due to lower interest margin partially offset by higher average interest-earning assets compared to the quarter ended March 31, 2015. Provision for loan losses expense decreased by $75,000 due to improved credit quality metrics. Loss share reimbursement revenue, a component of non-interest income, decreased by $76,000 primarily due to its linkage to the lower provision for loan losses expense. Loss share reimbursement revenue represents an expected reimbursement from the FDIC of 80% of losses on covered loans acquired in 2010 in the FDIC-assisted transaction of MainStreet Savings Bank. Operating expenses decreased by $32,000 primarily due to lower data processing expenses and gains on other real estate sales.

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 loan production offices in Grand Rapids and Mount 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 March 31,
2016 2015
Return on Equity (ROE) 10.67% 11.32%
Return on Assets (ROA) .64 .69
Interest Margin 2.93 3.14
March 31,
2016 2015
Non-performing Assets Ratio .45% .78%
Tier 1 Leverage Capital(1) 8.35 8.61
Total Risk-based Capital(1) 14.64 15.59
Book Value Per Share$7.41 $7.10
(1) Ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
Quarter Ended March 31,
2016 2015
Interest Income$3,567,884 $3,568,082
Interest Expense 854,203 845,226
Net Interest Income 2,713,681 2,722,856
Provision for loan losses 31,752 106,574
Non-interest income 352,714 443,004
Operating Expenses 2,152,900 2,185,259
Income before taxes 881,743 874,027
Income tax expense 246,055 237,763
Net Income$635,688 $636,264
Net Income per share – basic$0.20 $0.20
Net Income per share – diluted$0.20 $0.20
Consolidated Balance Sheets (unaudited):
March 31,
2016 2015
Assets
Cash and cash equivalents$28,479,701 $15,943,546
Time deposits with other banks 35,588,000 18,563,000
Securities 36,323,874 47,232,016
Loans 290,022,094 274,474,544
Allowance for loan losses (2,593,972) (2,604,074)
Loans, net 287,428,122 271,870,470
Bank premises and equipment 4,243,159 4,380,464
Other assets 16,183,760 17,723,661
Total Assets$408,246,616 $375,713,157
Liabilities
Deposits$329,180,486 $307,340,384
Other borrowings 41,377,962 30,990,757
Trust preferred 10,310,000 10,310,000
Other liabilities 3,257,229 3,970,650
Total Liabilities 384,125,677 352,611,791
Equity
Common stock and paid in capital 13,572,835 13,572,835
Retained earnings 10,389,620 9,396,528
Accumulated OCI 158,484 132,003
Total Equity 24,120,939 23,101,366
Total Liabilities and Equity$408,246,616 $375,713,157

Contact: Kevin Twardy CFO and COO (989) 875-5528

Source: Commercial National Financial Corporation