California Attorney General Orders xAI to Halt Illegal Grok Deepfake Imagery 
Valentino Garavani Dies at 93, Leaving Behind the Timeless Legacy of Valentino Red 
Nvidia CEO Jensen Huang Plans China Visit Amid AI Chip Market Uncertainty 
Lynas Rare Earths Shares Surge as Quarterly Revenue Jumps on Strong Prices 
Rio Tinto Posts Strong Q4 Iron Ore and Copper Output on Operational Recovery 
Court Allows Expert Testimony Linking Johnson & Johnson Talc Products to Ovarian Cancer 
BHP Posts Record Iron Ore Output as China Pricing Pressures Loom 
OpenAI Launches Stargate Community Plan to Offset Energy Costs and Support Local Power Infrastructure 
HKEX’s Permissive IPO Rules Could Open Opportunities for Korea to Strengthen Its Position in International Listings 
Trump Signs Executive Order to Limit Wall Street Investment in Single-Family Homes 
Micron to Buy Powerchip Fab for $1.8 Billion, Shares Surge Nearly 10% 
TikTok Expands AI Age-Detection Technology Across Europe Amid Rising Regulatory Pressure 
Netflix Stock Slips After Earnings as Soft 2026 Guidance Overshadows Subscriber Milestone 
China Halts Shipments of Nvidia H200 AI Chips, Forcing Suppliers to Pause Production 
Lululemon Founder Chip Wilson Escalates Proxy Fight to Remove Advent From Board 
ITHACA, Mich., April 27, 2017 -- 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
