Overview
- Commercial National Financial Corporation reported Q2 net income of $1.641 million, or $0.42 per share, a small increase from $1.607 million a year earlier.
- Net interest income rose $194,000 and the bank’s reported net interest margin was 4.00%, while return on equity eased to 11.60%.
- Total assets held near $553 million as securities grew by $37 million, including $17 million moved from reduced loan balances, while loan balances declined.
- Deposits fell by $17 million and were largely replaced with Federal Home Loan Bank borrowings, and Commercial Bank remained well capitalized with a 10.89% Tier 1 leverage ratio and 0.26% nonperforming assets.
- CEFC continues an open share repurchase program that has bought 87,514 shares with $1.2 million reserved for future buys, and key items to watch are the durability of margin gains, the path of loan runoff, and the cost of borrowed funding.