Commercial National Financial Corporation Reports 2nd Quarter 2020 Earnings
ITHACA, Mich., July 29, 2020 (GLOBE NEWSWIRE) — Commercial National Financial Corporation (Pink Sheets: CEFC) today announced second quarter 2020 net income of $1,147,000, or $.29 per share compared to second quarter 2019 net income of $1,123,000, or $.28 per share. Return on Equity (ROE) was 11.54% for the second quarter of 2020 compared to 12.32% for the second quarter of 2019.
For the second quarter of 2020, net interest income increased $348,000, or 9.7% compared to the second quarter of 2019 primarily due to net interest margin improvement as well as from growth in interest-earning assets related to Paycheck Protection Program loans. Non-interest income increased by $17,000, or 3.3%. Operating expenses decreased by $100,000, or 3.7% primarily due to lower professional fees, occupancy and equipment expenses.The provision for loan losses expense was $450,000 for the second quarter of 2020, compared to none for the second quarter of 2019. The provision expense in the current quarter relates to additional environmental factor allocations and increased classified loans.Total assets were $554.8 million at June 30, 2020 compared to $520.1 million at June 30, 2019. The increase was primarily due to $30.9 million of Paycheck Protection Program loans outstanding at June 30, 2020 compared to zero at June 30, 2019. Total loans of $415.6 million increased $39.4 million, or 10.5% year over year. We are saddened by the recent passing of our Chairman of the Board and good friend, Mr. Scott Sheldon. Mr. Sheldon was a board member of the Bank for over 35 years and he will be truly missed. Please keep the Sheldon family in your thoughts and prayers as they go through this difficult time. Due to the recent passing of Mr. Scott Sheldon, the Board of Directors appointed Mr. Richard Prestage as Chairman of both the Bank and holding company boards. Mr. Prestage has been a board member for over 15 years.
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
For the second quarter of 2020, net interest income increased $348,000, or 9.7% compared to the second quarter of 2019 primarily due to net interest margin improvement as well as from growth in interest-earning assets related to Paycheck Protection Program loans. Non-interest income increased by $17,000, or 3.3%. Operating expenses decreased by $100,000, or 3.7% primarily due to lower professional fees, occupancy and equipment expenses.The provision for loan losses expense was $450,000 for the second quarter of 2020, compared to none for the second quarter of 2019. The provision expense in the current quarter relates to additional environmental factor allocations and increased classified loans.Total assets were $554.8 million at June 30, 2020 compared to $520.1 million at June 30, 2019. The increase was primarily due to $30.9 million of Paycheck Protection Program loans outstanding at June 30, 2020 compared to zero at June 30, 2019. Total loans of $415.6 million increased $39.4 million, or 10.5% year over year. We are saddened by the recent passing of our Chairman of the Board and good friend, Mr. Scott Sheldon. Mr. Sheldon was a board member of the Bank for over 35 years and he will be truly missed. Please keep the Sheldon family in your thoughts and prayers as they go through this difficult time. Due to the recent passing of Mr. Scott Sheldon, the Board of Directors appointed Mr. Richard Prestage as Chairman of both the Bank and holding company boards. Mr. Prestage has been a board member for over 15 years.
Contact:
Kevin A. Twardy
CFO and COO
989-875-5528
