Commercial National Financial Corporation Reports 2nd Quarter 2022 Earnings


ITHACA, Mich., July 26, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2022 net income of $1,518,113, or $.38 per share compared to second quarter 2021 net income of $1,411,813, or $.36 per share.   Return on Equity (ROE) was 14.23% for the second quarter of 2022 compared to 13.15% for the second quarter of 2021.

For the second quarter of 2022, net interest income increased $386,000, or 9.5% compared to the second quarter of 2021 primarily due to higher interest-earning assets as well as from the recovery of interest on non-accrual loan payoffs. Total loans, excluding Paycheck Protection Program (“PPP”) loans, increased $25.9 million, or 6.7% when comparing June 30, 2022 to June 30, 2021. Non-interest income decreased by $106,000, or 17.6% primarily due to lower miscellaneous income, partially offset by higher debit card fees. Operating expenses increased by $172,000, or 5.8% primarily due to higher wages and benefits expense.  

Total assets were $625 million at June 30, 2022 compared to $587.6 million at June 30, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings. At June 30, 2022, PPP loans outstanding were approximately $1.8 million compared to $60 million at June 30, 2021.

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 June 30, Six Months Ended June 30,
  2022   2021   2022   2021 
Return on Equity (ROE) 14.23%   13.15%   20.51%   14.76% 
Return on Assets (ROA) 0.97%   0.97%   1.47%   1.11% 
Net Interest Margin 3.02%   2.99%   3.68%   3.17% 
        
 June 30,    
  2022   2021     
Non-performing Assets Ratio 0.11%   0.84%     
Tier 1 Leverage Capital(1) 8.49%   8.79%     
Total Risk-based Capital(1) 14.84%   15.89%     
Book Value Per Share$9.81  $10.87     
Market Value Per Share$11.44  $10.75     
(1) Ratios are for Commercial Bank.       
        
Consolidated Statements of Income (unaudited):    
 Quarter Ended June 30, Six Months Ended June 30,
  2022   2021   2022   2021 
Interest Income$5,043,640  $4,680,835  $11,920,195  $9,663,400 
Interest Expense 585,202   608,648   1,117,064   1,248,522 
Net Interest Income 4,458,438   4,072,187   10,803,131   8,414,878 
Provision for loan losses -   -   -   - 
Non-interest income 496,982   603,232   1,075,857   1,185,915 
Operating Expenses 3,127,307   2,955,606   6,274,612   5,779,458 
Income before taxes 1,828,113   1,719,813   5,604,376   3,821,335 
Income tax expense 310,000   308,000   1,036,000   698,000 
Net Income$1,518,113  $1,411,813  $4,568,376  $3,123,335 
Net Income per share - diluted$0.38  $0.36  $1.15  $0.79 
Dividends declared$0.14  $0.14  $0.28  $0.28 
        
        
Consolidated Balance Sheets (unaudited):      
 June 30,    
  2022   2021     
Assets       
Cash and cash equivalents$68,922,849  $51,343,114     
Time deposits with other banks 11,450,000   20,854,000     
Securities 103,209,588   44,822,995     
Loans 412,037,495   444,406,884     
Allowance for loan losses (3,831,495)  (4,238,164)    
Loans, net 408,206,000   440,168,720     
Premises and equipment, net 8,595,466   8,134,522     
Other assets 24,602,640   22,308,977     
Total Assets$624,986,543  $587,632,328     
        
Liabilities       
Deposits$545,892,457  $492,885,149     
FHLB borrowings 24,000,000   35,400,000     
Trust preferred 13,403,000   13,403,000     
Other liabilities 2,792,569   2,842,747     
Total Liabilities 586,088,026   544,530,896     
        
Equity       
Total Equity 38,898,517   43,101,432     
Total Liabilities and Equity$624,986,543  $587,632,328     
        

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