ITHACA, Mich., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced third quarter 2019 net income of $1,478,000, or $.37 per share compared to third quarter 2018 net income of $1,177,000, or $.30 per share.  Return on Equity (ROE) was 15.57% for the third quarter of 2019 compared to 13.68% for the third quarter of 2018.

Total assets were $512.1 million at September 30, 2019 compared to $519.1 million at September 30, 2018.  The decrease in total assets is primarily due to intentionally decreasing brokered certificates of deposit with excess liquidity.  This resulted in an improved net interest margin which was 3.12% in the third quarter of 2019 as compared to 2.88% in the third quarter of 2018.  Total loans of $381.9 million increased $.1 million, or .04% year over year.  The lending environment remains very competitive in our markets and we experienced several large commercial loan payoffs during the past twelve months.  However, our loan pipeline is growing and we expect loans to increase during the next several quarters.

For the third quarter ended September 30, 2019, net interest income increased $267,000, or 7.7% primarily due to the net interest margin improvement discussed above.  Non-interest income rose by $150,000, or 23.9% primarily due to increased loan fees.  Operating expenses increased by $33,000, or 1.2% primarily due to higher wages and benefits expense and professional fees, partially offset by lower FDIC insurance expense related to the small bank assessment credits of $65,000 applied by the FDIC during the quarter.

Commercial National Financial Corporation operates through a single subsidiary bank, Commercial Bank.   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 September 30,								Nine Months Ended September 30,
			2019				2018				2019				2018
Return on Equity (ROE)			15.57	%			13.68	%			13.51	%			13.62	%
Return on Assets (ROA)			1.14	%			0.91	%			0.95	%			0.88	%
Net Interest Margin			3.12	%			2.88	%			3.00	%			2.93	%
		September 30,
			2019				2018
Non-performing Assets Ratio			0.75	%			0.40	%
Tier 1 Leverage Capital(1)			9.08	%			8.51	%
Total Risk-based Capital(1)			14.10	%			13.94	%
Book Value Per Share		$	9.59			$	8.67
Market Value Per Share		$	10.20			$	12.47
(1) Ratios are for Commercial Bank.		.				.
Consolidated Statements of Income (unaudited):
		Quarter Ended September 30,								Nine Months Ended September 30,
			2019				2018				2019				2018
Interest Income		$	5,060,484			$	4,793,171			$	15,102,630			$	14,307,061
Interest Expense			1,308,200				1,308,253				4,184,398				3,629,503
Net Interest Income			3,752,284				3,484,918				10,918,232				10,677,558
Provision for loan losses			-				-				-				-
Non-interest income			778,132				628,019				1,861,603				1,512,637
Operating Expenses			2,736,680				2,704,079				8,322,030				8,046,515
Income before taxes			1,793,736				1,408,858				4,457,805				4,143,680
Income tax expense			315,500				231,851				755,500				717,851
Net Income		$	1,478,236			$	1,177,007			$	3,702,305			$	3,425,829
Net Income per share – diluted		$	0.37			$	0.30			$	0.93			$	0.86
Dividends declared		$	0.13			$	0.13			$	0.39			$	0.39
Consolidated Balance Sheets (unaudited):
		September 30,
			2019				2018
Assets
Cash and cash equivalents		$	29,548,841			$	21,135,682
Time deposits with other banks			33,703,000				49,052,000
Securities			39,462,218				38,988,839
Loans			381,898,344				381,715,154
Allowance for loan losses			(2,753,679	)			(2,668,424	)
Loans, net			379,144,665				379,046,730
Premises and equipment, net			8,584,696				8,114,616
Other assets			21,686,072				22,733,983
Total Assets		$	512,129,492			$	519,071,850
Liabilities
Deposits		$	396,407,431			$	413,177,885
Other borrowings			61,188,333				55,269,515
Trust preferred			13,403,000				13,403,000
Other liabilities			3,120,848				2,855,188
Total Liabilities			474,119,612				484,705,588
Equity
Total Equity			38,009,880				34,366,262
Total Liabilities and Equity		$	512,129,492			$	519,071,850

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

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