ITHACA, Mich., April 28, 2021 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2021 net income of $1,712,000, or $.43 per share compared to first quarter 2020 net income of $803,000, or $.20 per share. Return on Equity (ROE) was 16.42% for the first quarter of 2021 compared to 8.23% for the first quarter of 2020.
For the first quarter of 2021, net interest income increased $583,000, or 15.5% compared to the first quarter of 2020 primarily due to accelerated accretion of deferred fees from Paycheck Protection Program (PPP) loan payoffs. These loans were authorized by the CARES Act approved by Congress in response to the Covid-19 pandemic. Non-interest income increased by $74,000, or 14.6% primarily due to higher debit card fees. Operating expenses increased by $2,000, or .08%.
The provision for loan losses expense was zero for the first quarter of 2021, compared to $500,000 for the first quarter of 2020. The provision expense in the first quarter of 2020 was primarily due to additional environmental factor allocations related to worsening economic conditions from the Covid-19 pandemic.
Total assets were $569.8 million at March 31, 2021 compared to $511.3 million at March 31, 2020. The increase was primarily due to $60.4 million of Paycheck Protection Program loans outstanding at March 31, 2021 compared to zero at March 31, 2020. Total loans of $444.8 million increased $56.9 million, or 14.7% year over year.
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 March 31, | |||||||
| 2021 | 2020 | ||||||
| Return on Equity (ROE) | 16.42% | 8.23% | |||||
| Return on Assets (ROA) | 1.25% | 0.64% | |||||
| Net Interest Margin | 3.35% | 3.19% | |||||
| March 31, | |||||||
| 2021 | 2020 | ||||||
| Non-performing Assets Ratio | 1.09% | 0.70% | |||||
| Tier 1 Leverage Capital(1) | 9.06% | 9.37% | |||||
| Total Risk-based Capital(1) | 15.59% | 14.23% | |||||
| Book Value Per Share | $10.68 | $9.94 | |||||
| Market Value Per Share | $10.50 | $8.40 | |||||
| (1) Ratios are for Commercial Bank. | |||||||
| Consolidated Statements of Income (unaudited): | |||||||
| Quarter Ended March 31, | |||||||
| 2021 | 2020 | ||||||
| Interest Income | $ | 4,982,565 | $ | 4,826,267 | |||
| Interest Expense | 639,874 | 1,066,451 | |||||
| Net Interest Income | 4,342,691 | 3,759,816 | |||||
| Provision for loan losses | - | 500,000 | |||||
| Non-interest income | 582,683 | 508,676 | |||||
| Operating Expenses | 2,823,852 | 2,821,570 | |||||
| Income before taxes | 2,101,522 | 946,922 | |||||
| Income tax expense | 390,000 | 143,500 | |||||
| Net Income | $ | 1,711,522 | $ | 803,422 | |||
| Net Income per share - diluted | $ | 0.43 | $ | 0.20 | |||
| Dividends declared | $ | 0.14 | $ | 0.14 | |||
| Consolidated Balance Sheets (unaudited): | |||||||
| March 31, | |||||||
| 2021 | 2020 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 29,060,961 | $ | 23,764,952 | |||
| Time deposits with other banks | 22,097,000 | 34,442,000 | |||||
| Securities | 46,981,725 | 38,334,501 | |||||
| Loans | 444,836,860 | 387,974,640 | |||||
| Allowance for loan losses | (4,256,978 | ) | (3,255,076 | ) | |||
| Loans, net | 440,579,882 | 384,719,564 | |||||
| Premises and equipment, net | 8,087,637 | 8,349,490 | |||||
| Other assets | 22,967,038 | 21,713,027 | |||||
| Total Assets | $ | 569,774,243 | $ | 511,323,534 | |||
| Liabilities | |||||||
| Deposits | $ | 475,090,235 | $ | 396,667,495 | |||
| Other borrowings | 35,400,000 | 58,749,303 | |||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||
| Other liabilities | 3,533,757 | 3,084,575 | |||||
| Total Liabilities | 527,426,992 | 471,904,373 | |||||
| Equity | |||||||
| Total Equity | 42,347,251 | 39,419,161 | |||||
| Total Liabilities and Equity | $ | 569,774,243 | $ | 511,323,534 | |||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528