Commercial National Financial Corporation Reports 4th Quarter 2023 Earnings

ITHACA, Mich., Jan. 26, 2024 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced that net income for the fourth quarter of 2023 was $1,458,000 or $0.37 per share compared to fourth quarter 2022 net income of $1,912,000 or $0.48 per share. Return on Equity (ROE) was 13.34% for the fourth quarter of 2023 compared to 19.86% for the fourth quarter of 2022.

Net interest income for the fourth quarter of 2023 decreased by $523,000 or 10.3% compared to the fourth quarter of 2022. While interest income increased due to higher market interest rates, interest expense on deposits increased at a higher pace during 2023, which resulted in lower net interest margins and reduced income. Additionally, non-interest income decreased by $34,000 or 7.0%, as miscellaneous income was down, while operating expenses increased by $53,000 or 1.6%, as occupancy and equipment costs were higher.

Total loans increased by $6.1 million or 1.5% year-over-year, mainly due to new commercial loan originations. Total assets were $579.2 million at December 31, 2023 compared to $613.8 million at December 31, 2022. The decrease in assets was due to the repayment of wholesale borrowings with excess liquidity and lower deposit balances. CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.

Visit www.commercial-bank.com to view the latest news releases and other information about CEFC and Commercial Bank.

Selected Financial Data (unaudited):
	Quarter Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Return on Equity (ROE)		13.34	%			19.86	%			14.40	%			19.20	%
Return on Assets (ROA)		0.99	%			1.22	%			1.04	%			1.29	%
Net Interest Margin		3.28	%			3.41	%			3.26	%			3.44	%
	December 31,
		2023				2022
Non-performing Assets Ratio		0.16	%			0.11	%
Tier 1 Leverage Capital(1)		9.63	%			8.68	%
Total Risk-based Capital(1)		15.58	%			15.18	%
Book Value Per Share	$11.80				$9.91
Market Value Per Share	$9.26				$10.50
(1) Ratios are for Commercial Bank.
Consolidated Statements of Income (unaudited):
	Quarter Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Interest Income	$	6,580,148			$	6,190,953			$	25,392,219			$	23,422,328
Interest Expense		2,014,110				1,101,926				7,026,000				3,005,219
Net Interest Income		4,566,038				5,089,027				18,366,219				20,417,109
Provision for loan losses		(57,494	)			-				(165,494	)			-
Non-interest income		456,500				490,764				1,998,998				2,207,795
Operating Expenses		3,281,896				3,229,000				13,005,407				12,747,566
Income before taxes		1,798,136				2,350,791				7,525,304				9,877,338
Income tax expense		340,000				439,000				1,352,663				1,796,000
Net Income	$	1,458,136			$	1,911,791			$	6,172,641			$	8,081,338
Net Income per share - diluted	$	0.37			$	0.48			$	1.56			$	2.04
Dividends declared	$	0.14			$	0.14			$	0.56			$	0.56
Consolidated Balance Sheets (unaudited):
	December 31,
		2023				2022
Assets
Cash and cash equivalents	$	32,942,957			$	61,071,786
Time deposits with other banks		3,735,000				8,960,000
Securities		94,306,770				101,705,429
Loans		417,403,567				411,293,661
Allowance for loan losses		(3,570,271	)			(4,154,073	)
Loans, net		413,833,296				407,139,588
Premises and equipment, net		9,252,193				8,795,376
Other assets		25,090,633				26,082,215
Total Assets	$	579,160,849			$	613,754,394
Liabilities
Deposits	$	501,646,583			$	538,732,322
FHLB borrowings		14,000,000				19,000,000
Trust preferred		13,403,000				13,403,000
Other liabilities		3,301,371				3,305,797
Total Liabilities		532,350,954				574,441,119
Equity
Total Equity		46,809,895				39,313,275
Total Liabilities and Equity	$	579,160,849			$	613,754,394

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