Commercial National Financial Corporation Reports 4th Quarter 2023 Earnings
Commercial National Financial Corporation (CEFC) reported a decrease in net income for Q4 2023 compared to Q4 2022, with a lower return on equity and decreased net interest income. Total loans and assets also saw a decrease, while non-interest income and operating expenses were impacted. Despite these challenges, CEFC's subsidiary, Commercial Bank, remains well-capitalized.
Negative
Decreased net income and return on equity for Q4 2023 compared to Q4 2022
Decrease in net interest income and non-interest income
Increase in operating expenses and decrease in total assets
01/26/2024 - 08:00 AM
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
What was the net income for CEFC in Q4 2023?
CEFC reported a net income of $1,458,000 for Q4 2023, or $0.37 per share, compared to $1,912,000 or $0.48 per share in Q4 2022.
What was the return on equity for CEFC in Q4 2023?
CEFC's return on equity for Q4 2023 was 13.34%, compared to 19.86% for Q4 2022.
How did CEFC's total loans change year-over-year?
CEFC's total loans increased by $6.1 million or 1.5% year-over-year, mainly due to new commercial loan originations.
What is the total assets of CEFC as of December 31, 2023?
CEFC's total assets were $579.2 million at December 31, 2023, compared to $613.8 million at December 31, 2022.
Is CEFC's subsidiary, Commercial Bank, well-capitalized?
Yes, CEFC's wholly owned subsidiary, Commercial Bank, remains significantly above 'well capitalized' for regulatory purposes.
Commercial National Financial Corp (MI)
CEFC Rankings
N/A Ranked by Stock Gains
CEFC Stock Data
Industry
Commercial Banking
Sector
Finance and Insurance
Tags
Regional Banks, Finance, Finance and Insurance, Commercial Banking
About CEFC
commercial national financial corporation operates as the holding company for commercial bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in michigan. it accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. the company also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, sba loans, equipment loans, real estate loans, vehicle loans, term loans, usda loan programs, and capital access loan programs. it also provides other services comprising business visa check cards, debit and atm cards, business statement savings, business certificates of deposit, merchant bankcard ref