ITHACA, Mich., April 29, 2022 (GLOBE NEWSWIRE) -- Commercial National Financial Corporation (Pink Sheets: CEFC) today announced first quarter 2022 net income of $3,050,000, or $.77 per share compared to first quarter 2021 net income of $1,712,000, or $.43 per share. Return on Equity (ROE) was 26.26% for the first quarter of 2022 compared to 16.42% for the first quarter of 2021.
For the first quarter of 2022, net interest income increased $2,002,000, or 46.1% compared to the first quarter of 2021 primarily due to significantly higher accretion on Paycheck Protection Program (PPP) loans. During the quarter, $46.2 million of PPP loans were forgiven by the Small Business Administration. At March 31, 2022, PPP loans outstanding were approximately $3.8 million compared to $60.4 million at March 31, 2021. Total loans, excluding PPP loans, increased $22 million, or 5.7% when comparing March 31, 2022 to March 31, 2021.
Noninterest income decreased by $4,000, or .7% primarily due to lower miscellaneous income, partially offset by higher debit card interchange revenue. Operating expenses increased by $323,000 or 11.5% primarily due to higher compensation and benefits expense associated with hiring additional lending and treasury team members.
Total assets were $627.4 million at March 31, 2022 compared to $569.8 million at March 31, 2021. The increase was primarily due to core deposit growth, partially offset by lower wholesale borrowings.
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, | |||||||
| 2022 | 2021 | ||||||
| Return on Equity (ROE) | 26.26 | % | 16.42 | % | |||
| Return on Assets (ROA) | 1.99 | % | 1.25 | % | |||
| Net Interest Margin | 4.37 | % | 3.35 | % | |||
| March 31, | |||||||
| 2022 | 2021 | ||||||
| Non-performing Assets Ratio | 0.70 | % | 1.09 | % | |||
| Tier 1 Leverage Capital(1) | 8.59 | % | 9.06 | % | |||
| Total Risk-based Capital(1) | 14.94 | % | 15.59 | % | |||
| Book Value Per Share | $ | 11.51 | $ | 10.68 | |||
| Market Value Per Share | $ | 13.30 | $ | 10.50 | |||
| (1) Ratios are for Commercial Bank. | . | . | |||||
| Consolidated Statements of Income (unaudited): | |||||||
| Quarter Ended March 31, | |||||||
| 2022 | 2021 | ||||||
| Interest Income | $ | 6,876,555 | $ | 4,982,565 | |||
| Interest Expense | 531,862 | 639,874 | |||||
| Net Interest Income | 6,344,693 | 4,342,691 | |||||
| Provision for loan losses | - | - | |||||
| Non-interest income | 578,875 | 582,683 | |||||
| Operating Expenses | 3,147,305 | 2,823,852 | |||||
| Income before taxes | 3,776,263 | 2,101,522 | |||||
| Income tax expense | 726,000 | 390,000 | |||||
| Net Income | $ | 3,050,263 | $ | 1,711,522 | |||
| Net Income per share - diluted | $ | 0.77 | $ | 0.43 | |||
| Dividends declared | $ | 0.14 | $ | 0.14 | |||
| Consolidated Balance Sheets (unaudited): | |||||||
| March 31, | |||||||
| 2022 | 2021 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 67,543,910 | $ | 29,060,961 | |||
| Time deposits with other banks | 14,380,000 | 22,097,000 | |||||
| Securities | 108,533,063 | 46,981,725 | |||||
| Loans | 410,228,551 | 444,836,860 | |||||
| Allowance for loan losses | (3,831,809 | ) | (4,256,978 | ) | |||
| Loans, net | 406,396,742 | 440,579,882 | |||||
| Premises and equipment, net | 8,377,785 | 8,087,637 | |||||
| Other assets | 22,165,771 | 22,967,038 | |||||
| Total Assets | $ | 627,397,271 | $ | 569,774,243 | |||
| Liabilities | |||||||
| Deposits | $ | 531,049,989 | $ | 475,090,235 | |||
| Other borrowings | 34,400,000 | 35,400,000 | |||||
| Trust preferred | 13,403,000 | 13,403,000 | |||||
| Other liabilities | 2,886,462 | 3,533,757 | |||||
| Total Liabilities | 581,739,451 | 527,426,992 | |||||
| Equity | |||||||
| Total Equity | 45,657,820 | 42,347,251 | |||||
| Total Liabilities and Equity | $ | 627,397,271 | $ | 569,774,243 | |||
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
