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Commercial National Financial Corporation Reports 1st Quarter 2021 Earnings

Written by Customer Service on . Posted in Public Companies.

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

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