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Commercial National Financial Corporation Reports 1st Quarter 2022 Earnings

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

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

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