×

Commercial National Financial Corporation Reports 1st Quarter 2017 Earnings

ITHACA, Mich., April 27, 2017 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (OTC:CEFC) today announced a 2017 first quarter net loss of $206,000, or $.05 per share compared to 2016 first quarter net income of $636,000, or $.20 per share. Excluding merger-related expenses of the previously announced merger with Capital Directions, Inc., the holding company for Mason State Bank, 2017 first quarter net income was $803,000, or $.21 per share.

Total assets were $535.9 million at March 31, 2017 compared to $408.2 million at March 31, 2016. Total loans grew $97.3 million, or 33.5% year over year. Approximately $75.4 million of loan growth related to the merger with Mason State Bank with the remainder related to commercial loan originations. We are continuing our efforts to increase loan volume while maintaining our credit quality standards.

For the quarter ended March 31, 2017, net interest income increased $887,000, or 32.7% primarily due to the growth in loans mentioned above as compared to the March 31, 2016 quarter. Non-interest income increased $68,000 or 19.2% over the same time frame primarily due to higher service charges and other income levels as a result of combining both banks. Operating expenses increased by $2.2 million mostly due to merger-related obligations and costs related to the conversion of Mason State Bank data processing systems to ours.

President and CEO Kevin D. Collison stated “We are pleased to have closed the merger with Capital Directions, Inc. The first quarter results were significantly affected by the remaining merger-related expenses as well as the costs to convert Mason State Bank’s data processing systems to ours. We sincerely appreciate the long hours our staff have put in to make the conversion as seamless as possible for our customers. We look forward to seeing the benefits of this merger in the coming months.”

Selected Financial Data (unaudited):
Quarter Ended March 31,
2017 2016
Return on Equity (ROE) (2.61)% 10.67%
Return on Assets (ROA) (.16) .64
Net Interest Margin 2.95 2.93
March 31,
2017 2016
Non-performing Assets Ratio .48% .45%
Tier 1 Leverage Capital(1) 7.76 8.35
Total Risk-based Capital(1) 13.34 14.64
Book Value Per Share$7.99 $7.41
Market Value Per Share 11.37 9.75
(1) Ratios are for Commercial Bank.


Consolidated Statements of Income:
Quarter Ended March 31,
2017 2016
Interest Income$4,560,656 $3,567,884
Interest Expense 959,834 854,203
Net Interest Income 3,600,822 2,713,681
Provision for loan losses 15,814 31,752
Non-interest income 420,523 352,714
Operating Expenses 4,389,526 2,152,900
Income (loss) before taxes (383,995) 881,743
Income tax expense (benefit) (178,000) 246,055
Net Income (loss)$(205,995)$ 635,688
Net Income (loss) per share – basic$(0.05)$0.20
Net Income (loss) per share – diluted$(0.05)$0.20
Dividends declared$0.13 $0.13
Consolidated Balance Sheets:
March 31,
2017 2016
Assets
Cash and cash equivalents$39,635,041 $28,479,701
Time deposits with other banks 41,293,000 35,588,000
Securities 38,948,461 36,323,874
Loans 387,305,804 290,022,094
Allowance for loan losses (2,752,545) (2,593,972)
Loans, net 384,553,259 287,428,122
Bank premises and equipment 7,122,992 4,243,159
Other assets 24,300,812 16,183,760
Total Assets$535,853,565 $408,246,616
Liabilities
Deposits$435,628,474 $329,180,486
Other borrowings 50,290,819 41,377,962
Trust preferred 13,403,000 10,310,000
Other liabilities 4,846,800 3,257,229
Total Liabilities 504,169,093 384,125,677
Equity
Common stock and paid in capital 21,324,921 13,572,835
Retained earnings 10,361,306 10,389,620
Accumulated OCI (1,755) 158,484
Total Equity 31,684,472 24,120,939
Total Liabilities and Equity$535,853,565 $408,246,616


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

Source: Commercial National Financial Corporation